By Rain Yu Long
Chief Human Resources Officer, General Counsel, JD.com
Chairwoman, JD Foundation

E-commerce has revolutionized the way the world does business. It has created greater convenience for consumers, enabling them to purchase what they want, whenever and wherever they want. It has also generated vast new opportunities for retailers as well as new challenges, particularly in the area of sustainability.

Packaging waste and emissions have gained greater attention in recent years. Twenty-five years ago in China, it was unthinkable to throw anything away that could be re-used; but as consumption has increased, our habits have evolved: with more purchases comes more waste.

JD.com believes that, as retailers, we must actively take steps to make global consumption more sustainable – especially those of us that are building the future of retail through e-commerce. In 2017, China’s e-commerce market grew by 19.8% to US$3.82 trillion, according to China’s Ministry of Commerce, so these challenges are increasing significantly every year.

The JD Foundation is an affiliate of our company with a focus on sustainability. Working together, we are coordinating an innovative plan across all departments of our company to re-think the way retailers do business.

Key components of the JD Foundation’s sustainable strategy can offer a guide to how e-commerce companies can make a difference.

Reducing waste

Tackling and removing excess waste from the delivery process is a key issue which should form a major part of companies’ sustainable consumption goals. For example, JD gives customers the option of returning boxes for re-use and recycling, and promotes this through our partner retailers and delivery companies.

Introducing reusable boxes made from biodegradable materials can also play an important role in cutting waste and making consumption more sustainable. Many companies, including JD, are implementing plans like this already.

Even reducing the thickness of the tape used to seal boxes plays its part in sustainable consumption, demonstrating that every little step makes a difference. By doing this, we’ve saved more than 100 million meters of tape in the past two years – that’s enough to stretch around the globe twice.

In addition, going paperless by making all invoices, receipts and order sheets digital can help companies cut down on waste, and again many companies including JD are already doing this.

Promoting sustainability

Updating methods of delivery and converting from conventional fuel vehicles to new energy vehicles will greatly reduce emissions. JD has more than 80,000 delivery employees across China, and to-date we have converted over 5,000 of our delivery vehicles to new energy, and plan to work with our partners in the coming years to convert hundreds of thousands more. By the time the entire fleet is green, we expect to reduce our yearly CO2 emissions by several million tons.

Making better use of existing logistics networks will also have an impact. Couriers deliver goods to your door, so why don’t they pick up your used items too? This approach can use established assets in e-commerce and delivery companies’ business models, and can be used as a driver for future growth.

Another key element is working with retailers and manufacturers to ensure that the products they produce are more sustainable – specifically, encouraging manufacturers to use more sustainable processes that reduce any negative environmental impact. This is especially important in terms of natural resources. We are currently working with our partners to ensure products such as Alaskan cod, Chilean salmon and black tiger shrimp from Vietnam are from sustainable sources.

Getting our customers involved

Partnering with green advocacy groups to launch sustainable consumption campaigns aimed at the public can get the sustainable consumption message out there. For example, JD is working with groups, including the United Nations Development Programme, to address waste and pollution throughout the consumption process.

Implementing campaigns and donation drives for used items such as clothing, toys and books can allow these items to be repurposed and given to charities and non-profit organizations. This extends the life cycle of products and reduces waste, and contributes to other social needs such as alleviating poverty.

We think that spearheading public awareness campaigns can contribute greatly to changing how people approach consumption. As a leader among e-commerce companies, JD has taken on this responsibility. If we can change current attitudes of public consumption culture, then that is half the battle won. To truly change the current shopping culture, consumers need to get involved too.

JD and the global e-commerce community more broadly are just beginning this journey towards sustainable consumption, but it’s important for all of us to start now while the industry is still rapidly evolving. Consumption should be sustainable both in terms of reducing the impact we have on the environment, and in terms of the viability and longevity of the programs we create.

If we can build the foundations for sustainable consumption in a way that makes better use of the assets in our business models, we can build a better future.

JD.com, China’s largest retailer, online or offline, has issued a new corporate social responsibility report, highlighting its commitment to global sustainability and dedication to giving back to the community.

The CSR report outlines JD’s accomplishments since 2013, underscoring the importance of sustainability, innovation and empowerment to company operations. The report also demonstrates how every part of the company’s footprint — from the creation of a product, to its packaging, sale, and delivery – is engineered to have a positive, sustainable and far-reaching impact on the global community and environment.

Projects such as the Green Stream Initiative and Recycling Program have reduced waste and emissions, as well as promoted sustainable consumption concepts to consumers to adopt in their daily lives.  Additionally, JD’s unique “giving platform” leverages the company’s advanced technology and self-built inventory and logistics networks to provide a secure way to link consumers with organizations in need of supplies, speeding delivery of donated goods to their intended recipients and making them trackable at every point. Projects such as these enable JD to engage its stakeholders, including suppliers and customers, to increase transparency and efficiency in philanthropy in China and beyond.

“As China’s largest retailer, we recognize that our influence extends far beyond our network of more than 300 million active customers,” said Richard Liu, JD.com founder and CEO.

“We have a responsibility to conduct our business in a manner that will have a positive influence. That is why we will continue to share our know-how and resources, continuously seeking innovative ways to improve society where our employees, customers, and partners live and work.”

Highlights from JD.com’s CSR report:

• 4 million donations collected for 600+ charity programs via the JD Giving Platform.
• 5,000+ new energy vehicles replaced conventional fuel fleet vehicles.
• 1+ million items of clothing and 400,000+ toys collected and reused or donated to people in need by recycling program.
• 250 million meters of packaging tape saved via innovative initiative.
• 3+ million products sourced from rural areas on JD.com benefiting 90% of China’s poorest counties.

Additionally, the CSR report demonstrates how JD.com has taken cues from the United Nations’ Sustainable Development Goals (SDGs), which focuses on 17 areas including poverty alleviation, clean energy and responsible consumption.

“Conducting this CSR report under the framework of SDGs for the first time, JD is showing how this framework provides an excellent way for organizations to measure their impacts on sustainable development for all,” said Agi Veres, Country Director, UNDP China.

Aided by its innovative technology and unparalleled infrastructure, JD has actively launched and supported many charity programs for social innovation, environmental protection, disaster relief, poverty alleviation, education, aiding the disadvantaged and poverty alleviation – detailed in the report.

JD is striving to create sustainable platforms using technological advances and supply chain improvements that impact hundreds of millions of people in China and throughout the world, with hopes that its sustainable and social responsibility actions can serve as blueprints for other e-commerce enterprises and retailers to follow.

Read the full CSR report here

Find out more about CSR at JD here