Interview with Chen Long, Chairman of the Alibaba Group Sustainable Development Management Committee and CEO of the Group Strategic Planning: ESG is the value of the society for the value of the enterprise

On August 29, Alibaba Group released the "2022 Alibaba Environment, Social and Governance Report" (ESG Report). The first systematic disclosure of ESG reports of Alibaba's environment, social and corporate governance information, which proposed "the value of business above business." From the perspective of this "23 -year -old" Internet giant, ESG is not only a ruler around value, responsibility and risk, but also a bridge to the future, and it is also an important cornerstone to 102 years.

As a result, Alibaba has positioned ESG as the cornerstone strategy of the company's long -term development. What does this mean? All sectors of society are particularly concerned about Alibaba's ESG practice. For Alibaba, is ESG responding to the needs of the capital market, or the reconstruction of the company's strategy and value? As the leader of the platform economy, what experience does it have in the process of promoting ESG? What are the impacts on the interests? How to achieve the 15 -year carbon reduction of 1.5 billion tons of carbon reduction?

In response to these issues, "Daily Economic News" reporter (hereinafter referred to as NBD) interviewed Chen Long, chairman of the Alibaba Group Sustainable Development Management Committee, and CEO of the Group's strategic planning.

Chen Long, Chairman of Alibaba Group Sustainable Development Management Committee, Group Strategic Planning President Chen Long Picture Source: Interviewee Confer

ESG provides action guidance for the "102 Years" goal

NBD: What considerations of Alibaba, positioning ESG as the cornerstone strategy of the company's long -term development? How does the company's definition and connotation of ESG understand?

Chen Long: First of all, although ESG's formulation standards have many discussions and even controversy around the world, the concept of ESG has been recognized by almost all countries. For enterprises, ESG seems to be a mirror, reflecting from the perspective of society to how to position and execute what you want to do. In the past, what is the relationship between social responsibility and business activities of enterprises is difficult to measure.

Therefore, in essence, ESG's connotation is to understand enterprises from the perspective of society, rather than the world from the perspective of the enterprise. In other words, to examine what the society needs, what the enterprise contributes, and what social value has been contributed.

Secondly, in simple terms, the essence of ESG is to solve the problem of sustainable development of people and nature, that is, the balanced development between the two, while both efficiency and fairness. Common wealth and other consistency. ESG is equivalent to putting these contents into a measured framework to help enterprises form active plans in protecting the environment, helping society, and doing a good job of their own three aspects.

Alibaba's vision is to be a good company for 102 years, but it is necessary to think deeply about how to live, what is the core axis, and how to form a consensus with society. ESG provides us with a framework and action guidance that can achieve this goal.

NBD: You just mentioned that Alibaba's vision is to be a good company for 102 years. In your opinion, what is the focus of practicing the ESG concept? In combination with the ESG concept, what should the company start this goal?

Chen Long: The current global ESG practice revolves around two key challenges. One is the environmental challenge of climate change into the core, and the other is the imbalance of socio -economic development, which is the challenge of non -balanced development. Alibaba's role in it is a technology company, and what should be done to relieve the pressure brought by challenges, which is also the positioning of technology companies in this era.

We believe that if you want to become a system and scale to deal with challenges, three pillars need to be established. The first is to define social responsibilities. Because a company cannot fulfill all the responsibilities in society, it is necessary to sort specific matters: what the company has the ability to do and what is more important, etc. This needs to be seen from a social perspective. The second is to make good use of technology. Without technology, there is no efficiency. If you just do a model project or only stay at the level of strategic discussion, there is actually no way to effectively solve the problem. Third, participants ecology is equally important. Alibaba used a word "Participants Economy" in the dual carbon report last year, which means that only by considering the interests of all parties and stimulating all parties to participate can it be able to solve problems in a system and scale.

As a platform -based company, Alibaba's relative strength is to gather everyone's strength and gather sand into towers. We realize that the platform company should practice a high -quality soil of ESG.

Picture source: Daily Economic News Map

"Participant Economy" means long -termist values

NBD: A few days ago, Alibaba released the first ESG report. Want to ask, how much score do you get Ali's ESG report? You just mentioned the concept of "participant economy", can it further explain this concept and its relationship with ESG?

Chen Long: I think our sincerity and original intention are 90 points. But there is a lot of distance from what can be done. We hope that in the future, we can continue to do these things. For the first time we wrote such a report, it took a long time to think clearly. So it is just a starting.

ESG based on "participant ecology" means long -term values. For example, the customer first has the ESG spirit, which requires the value of long -termism. But customers first, sometimes sacrifice business interests in the short term. In the long run, adhering to the first value of customers will bring the best business benefits. In the end, if we do these well, we will truly continue to prosper. Being a responsible technology company is our promise, which means that the fate and social responsibility of an enterprise are integrated into one and cannot be separated. We found that if companies have long -term values, we are basically in line with ESG spirit if they have long -term values.

NBD: Regarding the balance principle of ESG information disclosure, many investors hope to understand the company's non -financial risks. But we find that many ESG reports only say some positive aspects. So, how can Alibaba grasp the presentation of risk -free non -financial information?

Chen Long: ESG can be measured, just like a financial report every year. There are hundreds of indicators to be disclosed by ESG, which cannot run away. Enterprises do better and better according to this indicator system, but it is also rhythmic. And different indicators, Europe, the United States, and Hong Kong are not exactly the same, we are constantly communicating. Fundamentally, how do you do it, you need a mechanism to protect.

Let me give an example. For example, just like China's overall economic activity, Ali carbon discharge has not reached peaks and is still growing. We will talk about what we do. This is not contradictory to the goal we promise. We are going to achieve it, but we have not reached it now, which we need to face.

"15 billion -ton carbon reduction" is not a linear relationship

NBD: Alibaba disclosed that ESG practice is reflected in 7 aspects, namely "Alibaba ESG seven petals". Among them, "repairing green planets" ranks first. Ali has also launched projects such as "88 Carbon Accounts" and "Energy Consumption". So, what goals did Alibaba set in dual carbon?

Chen Long: In December last year, Alibaba made three promises. First of all, he hoped that it was no later than 2030, reaching scope 1 (Note: carbon emissions of enterprises' own facilities) and scope 2 (Note: Enterprise consumption of outsourcing energy sources for outsourcing energy purchase energy sources The carbon emissions of the energy supply agency) achieved carbon neutrality of its own operation; the second is the scope of implementation 3 (Note: refers to indirect carbon emissions from the upstream and downstream of the value chain, including outsourcing goods and services Carbon emissions such as the use of the product) carbon intensity are halved, and the carbon neutralization of cloud computing range 1, 2, and 3, to provide a green cloud for the society; third, promote consumers and supply side to form green goods With life ecology, we call it scope 3+. This goal is not within the scope of the company 1, 2, and 3, but we are willing to promote and set goals, which is a social responsibility that a platform should bear.

In general, Alibaba hopes to achieve the goal of reducing 1.5 billion tons of carbon emissions in 15 years.

NBD: It is planned to reduce carbon by 15 million tons in 15 years, which is equivalent to a 100 million tons per year. Is this a linear relationship? What method can be used to calculate this result?

Chen Long: The goal of 1.5 billion tons in 15 years, I think there is a rhythm problem. Our internal calculation is that the data at the beginning cannot show an explosive growth. For example, in the first year, it may not reach a amount of 100 million tons of emission reduction, but it can only reduce tens of millions of tons, and it may speed up later. This is not a linear relationship, but the result obtained through the average estimate.

So the first thing we do is to implement the methodology, how to scientifically measure, how to do, and what is the most effective mechanism.

Picture source: Daily Economic News Map

The faster the carbon peak, the better, but it will not be done overnight

NBD: Alibaba has to achieve a neutralized range of 1 and range 2 by 2030, so how long does it expect to achieve carbon peaks in the company?

Chen Long: Because the carbon peaks need to be achieved in 2030 in 2030, the more faster the carbon peaks must be, and there should be a few years. In my opinion, it is clear that the promotion of the new strategy of carbon Dafeng needs to combine the development of business, research and development related technologies, and build a matching mechanism.

Alibaba just promised the corresponding goals in December last year. It is important in the past two years. It belongs to the stones and asking for the technical and mechanism. However, we have some expectations inside. In the next year, we will know when it can be achieved more accurately, and the whole process cannot be achieved overnight.

NBD: So, in your opinion, what problems do you need to solve the scope of 3+ commitments?

Chen Long: You need to consider all aspects of issues. Because scope 3+ is a new thing, the calculation method and results must be recognized by the society, which is scientific, measured, and transparent. We have established a clear range of 3+ conceptual framework with professional institutions, but the carbon reduction measurement of various possible scope 3+ scenes has no uniform standard and easy -to -use tools. This is a core issue that needs to be solved. The formulation process and measurement standards must be authoritative and transparent, otherwise they will not have real value. Alibaba actively participated in the advancement of relevant metering standards, and jointly studied the metrological method of different scenarios with professional institutions, formed an independent expert committee for review, and developed an Open C+calculation engine with open sharing as its main goal. In addition, mentioned earlier, the scope 3+ includes consumers, merchants, manufacturers, etc., which belongs to a complex ecosystem. Therefore, how to let all parties participate in the joint need to explore, and the effect may be reflected in one year. We will also hire external auditors to certify this effect.

NBD: What impact will it bring if the measurement standards can be implemented if the range 3+ related measurement standards can be implemented?

Chen Long: I think it will promote more companies. When these standards come out, some are common, and some need to do some implementation in special scenes. In this process, we will promote a set of digital measurement standards and be able to be widely used in all parties.

In short, I think the ESG report is just a starting point. The most important thing is to make the content mentioned down and down to the ground. It cannot be reduced to formalism. We are confident to do this well.

Daily Economic News

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