2023 Alibaba ESG Report-Final

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Environmental, Social,

and Governance Report


Contents 01
Restoring Our Green Planet
Environmental strategy and 029-029 01
Fueling Small Businesses
Developing responsible 110-116 01
Building Trust
Building corporate trust 190-198
governance technologies
02 Building social trust 199-207
Company Introduction 002 02 Solidly promoting carbon 030-052 02 Building markets, business 117-131
neutrality capabilities and business
Letter from our Chairman and CEO 003 ecology for MSMEs
03 Conserving and restoring nature 053-064
Report Instructions 005 Creating and enabling Inclusive
03 132-139
Executive Summary 007 employment

Supporting Our People Appendices 208-239


04 Promoting responsible 140-146
production and distribution
01 Establishing a diverse, equitable, 067-072
and inclusive culture and system

02 Establishing fair and 073-076 Enhancing Community


competitive remuneration with Inclusion and Resilience
heartwarming benefits

03 Offering abundant learning and 077-081 01 Rural revitalization through 148-165


development opportunities digital development

04 Creating a work environment 082-087 02 Community resilience through 166-173


conducive to improving digital technology
employee health and vitality

Enabling a Sustainable Facilitating Participatory


Digital Life Philanthropy
01 Diverse consumption 090-094 01 Philanthropic participation of all 176-179
employees
02 Trustworthy Consumption 095-101
02 Technological innovations for social 180-182
03 Inclusive Consumption 102-104 challenges
04 Responsible Consumption 105-107 03 Connecting ecological forces to 183-187
empower charities
Company Introduction 2

Our mission
To make it easy to do business
anywhere.
Our vision
We aspire to be a good company
that will last for 102 years.
Company Introduction
Our mission: To make it easy to do business anywhere. Our founders started our company to champion small
businesses, in the belief that the Internet would level the playing field by enabling small enterprises to leverage innovation
and technology to grow and compete more effectively in domestic and global economies. We believe that concentrating
on customer needs and solving their problems – whether those customers are consumers, merchants, or enterprises –
ultimately will lead to the best outcome for our business. In the digital era, we are staying true to our mission by helping our
customers and business partners harness the power of digital technology. We have developed an ecosystem powered by
technology infrastructure that enables participants to create and share value on our platforms. Our decisions are guided by
how they serve our mission over the long term, not by the pursuit of short-term gains.

Our vision: We aspire to be a good company that will last for 102 years. For a company that was founded in 1999,
lasting for 102 years means we will have spanned three centuries. Our culture, business models, and systems are built to
last so that we can achieve sustainability in the long run. As we continue to expand our businesses, Alibaba has evolved
into an ecosystem that is unique, energetic, and innovative.
Letter from our Chairman and CEO 3

Action Is More Important Than Consensus


Letter from our Chairman and CEO

We hope to foster more “good companies” and leaders in sustainable


development by effectively implementing our ESG strategy.

I am pleased to share Alibaba Group’s annual Environmental, Social and Governance (ESG) Report.
Last summer, we released Alibaba Group’s first comprehensive ESG report and outlined seven
long-term strategic directions, named “Alibaba’s seven-petal ESG flower.” We were humbled by the
widespread recognition and support for the report and our strategy from different stakeholders
across the community.

Fiscal year 2023 was the first year we systematically implemented our complete ESG strategy.
Despite challenges in the macro environment, geopolitical uncertainties in the post-pandemic era,
and new trade-offs between sustainable development and economic growth, we achieved notable
progress in our ESG initiatives.

We are committed to environmental protection. Over the past year, we have worked to deliver
high-quality achievement of our established carbon neutrality goals. By transitioning to renewable
energy, encouraging technological innovation and building a participant ecosystem, we achieved
our goal of “double reduction,” where we reduced carbon emissions from our own operations and
carbon intensity across our value chain. In our first year of driving ecosystem carbon reduction,
where we had to design and implement everything from scratch, we reduced our carbon emissions
by 22.907 million tons. We have focused on three main areas to transform the value chain and As a commerce and technology platform connecting billions of consumers and nearly ten million enterprise
ecosystem of our cloud computing infrastructure so that we are part of a green, low-carbon circular customers, we pioneered the “Scope 3+” concept to encourage decarbonization across our platform
economy, which are: (1) building a clean cloud, (2) replacing traditional IT with cloud computing to ecosystems last year. We hope to build consensus with partners on carbon reduction standards and
boost efficiency, and (3) empowering intelligent transformations. Our self-built data centers' power promote sustainable progress of more enterprises. We are incredibly honored by the World Business Council
utilization efficiency (PUE) level continued to improve and reached 1.215, maintaining its leadership for Sustainable Development's invitation to join as the first Internet company from Asia. We have started
in Asia. We continued to successfully increase our transition to clean energy, which reached 53.9% collaborating with them on the Scope 3+ emission reduction standard and leveraging this opportunity to
of total energy consumption. introduce innovative carbon reduction solutions to the world.
Letter from our Chairman and CEO 4

We are delivering on our social responsibilities using our unique capacities and ways. committee has elevated governance mechanisms by incorporating ESG targets to business and compliance
We believe that a diverse and healthy working environment not only helps to attract and retain targets in the performance measurement of the CEOs of the major business groups and various businesses,
the best talent, but also stimulates the enthusiasm and creativity of our employees. This past and linking it to compensation. We hope to foster more"good companies"and leaders in sustainable
year, we continued to focus on our employee welfare and protection programs, fostering a fair, development by effectively implementing our ESG strategy.
diverse and inclusive culture, and creating an open and transparent work environment. We are
also actively giving back to the broader community, supporting various areas such as education, We are pleased that sustainable development has become a mainstream goal in this era. In less than 20
aging, accessibility, and rural revitalization. Over this past year, the Alibaba ecosystem has directly years, ESG has become a global initiative and reality, increasingly compulsory instead of optional. More
or indirectly facilitated over 70 million job opportunities. Taobao and Tmall Group has served than 70 stock exchanges have introduced ESG disclosure requirements, and more and more companies
over 320,000 visually impaired users. Amap’s wheelchair navigation feature has been used for are starting to publish their own ESG reports voluntarily. We hope that more and more peers will explore
travel planning more than 900,000 times. The “Cloud for Youth” Program has deployed “cloud the future of sustainable development together, create value beyond business, and jointly build a healthy,
computing rooms” to 102 schools, serving over 60,000 teachers and students. We are partnering comprehensive, and mutually prosperous sustainable ecosystem.
with the UNESCO Chair on Artificial Intelligence in Education to bring more cutting-edge computing
resources to students in China’s rural areas. Over the last few years, we have dispatched 27 rural Alibaba is a company that fundamentally believes in truth, kindness, and excellence. From our birth to the
revitalization commissioners and over 220 rural revitalization technology officers to rural areas present day and well into the future, we want to share our innovations in business and technology and our
across China. We were humbled by the recognition of these collective activities and initiatives by the approach to engaging with the world. If our annual financial report reflects Alibaba’s business operations
“2023 Philanthropic Enterprise of the Year” award and inclusion in the “Forbes’ Best Employers in and performance, then through the annual ESG report – which is essentially a yearly survey conducted
the World 2022” ranking. reflecting the actions of over 230,000 Alibaba employees - we hope to help more people understand and
appreciate our business philosophies, values and behavior principles, thoughts and plans for the future,
We continued to improve our corporate governance. On March 28th, Alibaba Group announced and ambitions for social responsibility. Some of these philosophies and principles have been in place since
a new “1+6+N” organizational and governance structure, the most important and far-reaching the company's birth. Many were forged during our development. And many more will emerge as we move
transformation since our establishment. The new governance structure empowers our businesses and dance with the times and society.
to become more agile, enhance decision making and therefore, better positioned to capture future
growth opportunities. In the future, based on the ESG goals of Alibaba Group, each major business We believe this report reflects on the past and gives our commitments to the future. We know that actions
group and various businesses will also define their own ESG goals and priorities according to their speak louder than words, and that action is more important than consensus. Only through concrete, step-
development status and situations. by-step action can we fulfill our responsibilities and truly create lasting, far-reaching, and meaningful value
for our customers, employees, shareholders, and stakeholders.
Some things will never change, which is our commitment to ESG. ESG will continue to be one of
Alibaba Group’s cornerstone strategies and the goal of creating value beyond business through
ESG remains unchanged. Alibaba’s three-tiered ESG governance structure remains unchanged, and
Daniel Zhang
each business group will continue exploring ESG action strategies according to its characteristics.
Alibaba Group Chairman and Chief Executive Officer
ESG will become a governance mechanism and value linkage between Alibaba Group and Cloud Intelligence Group Chairman and Chief Executive Officer
the major business groups and various businesses, helping Alibaba to continue to be a"good
company"and a leader in sustainable development. Alibaba Group’s board level compensation July 2023
Report Instructions 5

Report Instruction

In this report, "Alibaba" "we" "the Group" and "the company" all refer to "Alibaba Group Holding Limited"
This report mainly covers the environmental, social, and governance (hereinafter referred to as "ESG")
progress of the business directly operated and controlled by the Group from April 1, 2022, to March 31, 2023.
Some parts of the report also cover prior years as well as give forward-looking statements.
Unless specified, the monetary amounts shown in this report are all presented in RMB.
The report is prepared in accordance with the ESG Reporting Guide from the Hong Kong Stock Exchange. It
also refers to selected guidelines from the United Nations 2030 Sustainable Development Goals (SDGs), the
Global Reporting Initiative (GRI) Standards, the standards issued by the Sustainability Accounting Standards
Board (SASB), and the framework suggested by the Task Force on Climate-related Financial Disclosures (TCFD).

Additional disclosures can be found in our appendices.


Appendix 1: ESG Key Performance Metrics Table
Appendix 2: List of ESG Related Ratings and Awards
Appendix 3: ESG Data Verification Statement
Appendix 4: Greenhouse Gas Inventory and Carbon Methodology
Appendix 5: Climate-related Risks and Opportunities Assessment Report
Appendix 6: Stakeholder Engagement and Materiality Assessment
Appendix 7: Progress of United Nations Global Compact
Appendix 8: Report Indicator Index
Appendix 9: Important Legal Information

This report is presented in electronic versions in the ESG section of the Group’s official website (https://www.
alibabagroup.com/en-US/esg). A Chinese version, an English version, and printer-friendly versions are
available. In case of conflicts between the two languages, the Chinese version shall take precedence.

We value any feedback and opinions, which can be e-mailed to us at ESG@alibaba-inc.com.


ESG is the bridge
to the future
Executive Summary 7

Our corporate responsibilities and opportunities in an era of global challenges


Since the United Nations adopted the historic Transforming Our World: The 2030 Agenda for
Sustainable Development in 2015, addressing shared challenges such as climate change
and inequality has become a consensus for humanity, but we remain far away from realizing
these goals. Under the combined impact of the COVID-19 pandemic, geopolitical conflicts, and
climate change, the past year has seen a systemic setback in global development. The Human
Development Index (HDI) declined for two consecutive years for the first time in over three
decades, and inequalities have been widening both among and within countries and regions
(UNDP, 2022). This situation is further complicated by global ecological degradation that shows
no clear sign of easing, greenhouse gas emissions still on the rise, and the pace of emission
reductions lagging significantly behind the Paris Agreement targets.

These grim realities highlight that a wide array of stakeholders need to be involved in sustainable Social
development challenges, with their demands for different sustainable development goals Responsibility
intertwined. To truly alleviate such challenges, in addition to clear policy guidance, effort should
be made to give full play to scientific and technological innovation. This should be done in close
conjunction with market mechanisms which all parties are willing to participate in and benefit
from. This defines the social responsibility that Alibaba, as a digital technology and platform
company, should undertake.

We believe that clearly defining and prioritizing social responsibilities, leveraging technological
innovation, and promoting our stakeholder ecosystem serve as the indispensable building blocks
for mitigating these challenges at scale. By giving full play to these three pillars, businesses can
pool the strengths of many parties to explore collaborative solutions that are systematic, scalable, Stakeholder Strength of
and aligned with the public interest. From this, we will see opportunities to overcome the cyclical Ecosystem Technology
impacts of these challenges and to create greater value for business and beyond. Alibaba is well
positioned to synergize these three building blocks to create commercial and lifestyle ecosystems
that are driven by cutting-edge technologies and responsible to society.
Executive Summary 8

ESG strategic positioning and planning at Alibaba


Alibaba was born with the mission to "make it easy to do business anywhere". Our
growth has come from addressing social challenges, and this ethos is etched in our
DNA. Alibaba’s history of development has been forged by constant technological
innovations and new forms of business created along with our numerous
stakeholders. We have tens of millions of MSMEs (micro, small, and medium-sized
enterprises) active in our business ecosystem, serving consumers worldwide to help
them enjoy a better life. This ecosystem also serves as the most fertile soil for us to
jointly practice our social responsibility.

At the end of 2021, ESG was formally established as one of our cornerstone
strategies - dedicated to being a good company, and a high-tech business
committed long-term to improving human well-being and protecting the planet
we live on, so that man and nature can develop together in harmony. To ensure the
implementation of the ESG strategy, we have put in place a three-tier sustainability
governance structure, comprising the Sustainability Committee at the Board level,
the Sustainability Steering Committee at the Group management level, and the ESG
Working Group that connects all business units.

In FY2022, we conducted extensive communication with various stakeholders


including consumers, employees, shareholders and investors, governments,
partners, and communities. After considering the most pressing social challenges,
and our own strengths and capabilities, especially in fully leveraging the unique
advantages of a platform company, we identified seven long-term strategic
directions for core social responsibilities. These are represented in the Alibaba’s
seven-petal ESG flower. They are closely aligned with the UN’s 17 Sustainable
Development Goals (SDGs) and closely fit within China’s goals for its modernization.
Executive Summary 9

We are moving to plan, implement, and deepen our ESG strategic goals via 2. Integrating sustainable development into business Alibaba Supplier ESG Code of Conduct and to encourage
a five-step approach, which includes determining positioning and targets, design more suppliers to join us in sustainable practices.
integrating sustainable development into business design, actively promoting the For the past year, based on our strategic positioning and
coordinated transformation of the business ecosystem, amplifying impact through 4. Amplifying impact through platform technology
organizational commitments, we kept striving to integrate
platform technology, and implementing public welfare and charity programs that sustainable development into business design: we used Digital platforms stand out with their distinct
complement sustainable development, with FY2023 being the first year that we multiple channels to help our employees worldwide capability to reach and connect a vast array of
systematically implemented this approach. understand our ESG strategy and actions so that each diverse stakeholders. We can use the power of
of them can be an ESG embracer and practitioner. technology to help all stakeholders in fulfilling
Our management team has integrated ESG into their their own social responsibilities, thereby promoting
Objectives and Key Results (OKRs), so that high-standard the systematic transformations essential to social
ESG objectives are prioritized in core business units progress. Given our capabilities, it is both our
with the proper assessments; established an ESG data indispensable responsibility and a key opportunity to
management system to measure and manage progress strive to be a sustainable business leader. Through
towards relevant objectives; closely integrated core issues building our inclusive and efficient platforms, we
such as the achievement of emission reduction targets, help create and support tens of millions of jobs. We
privacy protection and data security, and technology ethics also drive hundreds of millions of consumers and
into our business, seeking to make our ESG strategy a new MSMEs towards emission reduction and build a green
driver of Alibaba’s business development; respected the and circular economy by establishing measures and
distinctive characteristics and developmental stages of the goals through platform-based solutions such as
different business units and industries in our complex and Scope 3+. We share our experiences and innovations
diverse business ecosystem, and define ESG priorities for with diverse stakeholders across industries and
their actions accordingly; established cross-departmental regions to initiate collective actions such as standards
working groups for collaborative assessment and planning setting and policy initiatives, to drive sustainable
for high-priority integrated issues (such as climate risks and transformation across the world.
opportunities).
5. Implementing charity for sustainability
1. Positioning and targeting 3. Promoting coordinated transformation of the related Establishing broad and mutual goodwill, among people
With the Seven-Petal framework orienting our core ESG strategy, we continually business ecosystem and between people and nature, is the foundational
identify the most critical issues in our own operations, value chain, and platform We team up with partners across the value chain to promote basis of sustainable development. We strive to harness
ecosystem through diverse communication and information gathering. We set sustainable innovation and transformation of the business the power of technology and platforms to connect a
specific and ambitious strategic goals towards high-priority issues, considering the ecosystem. We introduce higher sustainability standards broad ecosystem of participants, and evolve along the
realities of technology and business. We have been extending the scope and depth into our business, from greener, safer, and more trusted way into an integral part of rural revitalization and our
of our ESG strategic focus and ambitions, from proposing emission reduction targets cloud computing, AI, and logistics services to more diverse, sustainability goals from earlier focus on environmental
for our own operations, the value chain, and the platform ecosystem in 2021, to inclusive, and reliable consumer experiences, providing protection to poverty alleviation and beyond. We
vigorously facilitating diversity and independence in the composition of our Board of more sustainable options for customers and partners. incorporate philanthropy into business design to
Directors in 2022. We also continued to promote the implementation of the shoulder social responsibility beyond business.
Executive Summary 10

Progress and highlights of core Emission reduction throughout our value


chain (Scope 3)
ESG issues in FY2023 We worked on initiatives including efficiency
improvements across our supply chain,
The past year saw our efforts lead to blooms and fruits on all the seven petals electrification of ground transport, use of clean
of the ESG flower. Below is a summary of progress and highlights on some energy, and encouraging low-carbon business
core issues. travel among our employees, with a total of
emission reduction of 0.40 million MtCO2e
1. Advancing in the high-quality delivery of carbon throughout the value chain. In addition, coupled
neutrality targets with carbon removal and avoidance projects, our
In 2021, Alibaba set ambitious targets of achieving carbon neutrality in our value chain carbon intensity1 reduced from 9.2
own operations and halving the energy intensity across our value chain by MtCO2e per million RMB in FY2022 to 8.7 MtCO2e per
2030 and driving emission reduction of 1.5 gigatons over 15 years in our million RMB. Based on these steps, we are achieving
platform ecosystem. Over the past year, not only have we made solid progress success towards our goals in terms of both reducing
towards meeting these emissions reduction targets, but even more important emissions from our own operations and decreasing
has been the quality methods used to achieve this progress. We strived to carbon intensity across our value chain.
apply our strengths in technological innovation, energy transformation, no prior standard for the Scope 3+ concept, we have
and a participatory ecosystem to all aspects of sustainability, from energy Driving emission reduction in the ecosystem now developed emission reduction methodologies
efficiency and clean energy to recycling and recovery. We further extended our (Scope 3+) for specific scenarios while implementing practical
focus from emissions reduction to the preservation of the entire ecosystem, carbon abatement actions. During this first year of
represented by water conservation, plastic reduction, and waste elimination, We made significant progress in the following three implementing Scope 3+ emission reductions, we
so as to facilitate transforming China’s largest consumer ecosystem and its areas, accomplished emission reductions of 22.907 million
supporting businesses into a truly digital circular economy. First, in terms of science-based measurement, we MtCO2e, and determined a preliminary road map
cooperated with multiple professional institutions towards achieving long-term emission reduction goals.
to publicly announce an analytical framework Finally and meaningfully, through our Carbon88
Emission reduction in our own operations for scientific measurement of emission reduction ledger platform and Low-carbon Friendly Products
under the Scope 3+ methodology, and defined Program, we had 409 brands, 1.91 million products
(Scopes 1 and 2)
two implementation paths, i.e., Engaged Carbon and 187 million consumers participating in emission
We have taken measures such as smart energy management, clean energy Abatement (digitalization to drive emission reduction. This is one realization of our original
sourcing, and solar panel deployment. Net emissions totaled 4.681 million reduction) and Embedded Carbon Abatement intention of giving full play to the power of the
MtCO2e in FY2023, a year-over-year decrease of 12.9%. Annual operational (leveraging platforms to engage more stakeholders platform ecosystem and driving the transition to
emission reduction reached 1.419 million MtCO2e, a prominent increase of 128.9% in decarbonization). a digital circular economy for both suppliers and
over emission reduction of 0.62 million MtCO2e in the previous fiscal year. Second, regarding actual reduction practices, with consumers.

1 Value chain carbon intensity is defined as the net value chain emissions per million RMB of revenue.
Executive Summary 11

2. Creating a clean cloud Creating a clean cloud


Cloud computing serves as a vital and fundamental infrastructure for the Since we set our goal in 2021 to achieve carbon
growth of the digital economy. We focus our work on three directions, namely neutrality in our cloud operations and value chain
building our own clean cloud, replacing traditional IT to boost efficiency and (Scope 1, 2, and 3) by no later than 2030, we have
reduce emissions, and empowering the green and intelligent transformation, been working to define and build our own green
all striving to realize the value of these green foundational capabilities in the and low-carbon cloud computing across our
transition to a digital circular economy. As a global cloud industry leader, we operations and value chain, by means of extensive
are motivated to pioneer green and low-carbon cloud computing. self-initiated technology innovation, steady transition
to clean energy, and proactive decarbonization of
the supply chain. Over the past year, we have made
encouraging progress both in intensity and quality of
emission reductions.

Energy conservation and efficiency improvement


using data intelligence consumption in overall energy consumption in our self-
We have continued to focus on our hardware and built data centers from 21.6% in FY2022 to 53.9%, a year-
software co-design model, energy-saving server over-year rise of 1.5 times and taking a leading position
architecture, and liquid-cooled server technology in the industry in China. During the same period, we
to continuously improve computing utilization and extended the life of warranty servers amounting to 25.73
energy efficiency; improving resource utilization million cores and recycled 49,747 servers for continued
efficiency through intelligent O&M (Operation and service.
Maintenance), power management optimization,
digital use and management of resources, and Green transformation of the value chain
other means. In FY2023, overall average PUE (power We have actively promoted the decarbonization of our
utilization efficiency, the lower the better) of our self- suppliers through periodic assessments and evaluations
built data centers continued to decline from 1.247 in of their low-carbon practices; meanwhile, we share
FY2022 to 1.215, maintaining a leading level in Asia. our standards and technologies, and coordinate clean
energy resources, to help operators of our leased data
Enhancing resource efficiency centers boost their efficiency and cut emissions. In
We have continuously intensified the purchase and FY2023, suppliers collectively reduced carbon by 0.363
trading of clean energy and deployment of solar million MtCO2e through clean energy and RECs.
panels in eligible sites, making a breakthrough
increase in the proportion of clean energy
Executive Summary 12

Replacing traditional IT with cloud computing to boost efficiency bodies for one-stop certification and carbon labeling. This helps these enterprises, especially export-oriented MSMEs,
and reduce emissions to maintain low-carbon competitiveness at home and abroad. As of March 31, 2023, Energy Expert had served 2,580
enterprises worldwide.
According to the Carbon Trust’s report, Alibaba Cloud’s Carbon Benefits,
Alibaba Cloud users in China can avoid 85.5% of emissions by switching from
the traditional mode of locally deployed data centers and servers. Based on
our methodology, our cloud computing for client empowerment reduced 6.863
million MtCO2e of emissions in FY2023.

Empowering the green and intelligent transformation


We combine the digital and intelligent capabilities powered by our green
cloud computing to boost the digital circular economy transformations of
MSMEs across many industries.

Partnering with the power industry


The construction of new power systems, connection of renewable sources to
the grid, coordination of power sources, loads, grids, and storage, and the
building of a unified market all pose great challenges to the industry. In February
2023, Alibaba Cloud signed a memorandum of understanding (MoU) with
China Southern Power Grid to deepen cooperation on an AI-enabled Cloud in
power dispatching, jointly working towards the goal of safe, reliable, and green
development in this space. In March 2023, Alibaba advanced our comprehensive
strategic partnership with the State Power Investment Corporation Limited, joining
our complementary capabilities to give the electricity users like Alibaba access to
more and cleaner power ("New Energy+") and to help the power industry become
smarter and more efficient ("Green Digital Intelligence+").

Empowering export-oriented MSMEs


Energy Expert, launched by Alibaba Cloud, is an energy consumption and carbon
management platform to assist enterprise clients in saving energy and improving
efficiency. Energy Expert can intelligently generate carbon footprint inspection and
analysis reports for products, which can be uploaded to authoritative certification
Executive Summary 13

3. Supporting our employees Building Diversity, Equity and Inclusion (DEI) opportunities and resources for employees at different
culture and system career and life development stages to assist them in
We uphold the concept of "supporting employees in bettering themselves", achieving personal growth and career development. In
and make effort to create an environment that supports the mutual growth Our employees come from more than 60
FY2023, a total of 62,383 training sessions have been
of employees and the company. Over the past year, under a challenging countries and regions. Women account for 49.1%
performed, and the training hours per employee are 51
macroeconomic environment, we strived to embrace change. First, we of all employees. Women make up 41.9% of our
hours. A total 33,437 new learning materials have been
continued to build and improve upon a diverse, fair, and inclusive culture, management, 25% of our executive management
added for employees, especially diverse professional
enhance our compensation and benefits systems, and create a great working and 30% of the board of directors of the Group.
knowledge lectures and training on ESG.
environment to be a company that employees like working for. Beyond
these, we provide employees with abundant learning and development Establishing fair and competitive
Promoting employee health and vitality
opportunities, maintained an open channel for their information and remuneration and "heart-warming" benefits
communication, and work together with employees to jointly address diverse We create an open and transparent working Giving top priority to the health and safety of
challenges and ensure growth. atmosphere, establish a fair and equitable every Alibaba employee, we spare no efforts in
performance evaluation system, and inspire creating a healthy, safe, dynamic, and caring work
employee enthusiasm and creativity. environment. In FY2023, we initiated a systematic
Provide "heart-warming" benefits to every review and system of occupational health and
employee, including protections such as health safety management. On the basis of improving
insurance to employees and their families for peace the existing emergency management system, we
of mind, and enable employees to enjoy a variety have performed systematic review with reference to
of holidays and leave such as companionship ISO14001 and ISO45001 standards, and established
leave. In FY2023, a total of 62,138 employees the EHS (Environment, Health, and Safety) Committee
enjoyed companionship leave, in addition to their of Xixi Headquarter Campus on a pilot basis. There
annual leaves. are a total of 5,723 emergency responders in all
campuses across China, and a total of 138 automatic
Alibaba was awarded "Forbes 2022 Global Best external defibrillators (AEDs) are equipped. The Cloud
Employer," ranking among the Top 5 Chinese Valley, Alibaba's Cloud Campus in Hangzhou opened
enterprises, and awarded with "MostIn Global in September 2022, has been certified by ISO14001
Attractive Employer" by LinkedIn China. and ISO45001 standards, with its experience to be
steadily extended to other campuses.
Provide extensive learning and
development opportunities In FY2023, satisfaction with the office environment
has passed 91% for 4 consecutive quarters.
Adhering to the concept of "supporting employees to
better themselves”, we have provided diverse learning
Executive Summary 14

4. Promoting inclusive, trustworthy, and responsible Barrier-free travel: In "Wheelchair Navigation" of Internet Applications; Our major APPs have all
mode, Amap automatically navigates around introduced a "Senior Mode" to be more age-friendly
consumption
potential obstacles such as underground passages and bridge the digital divide.
Based on the United Nations' Sustainable Development Goals, we promote or pedestrian bridges that are not accessible to
sustainable consumption in four dimensions of being diverse, inclusive, wheelchair users. As of March 31, 2023, “Wheelchair In offline retail, we have steadily laid out and
trustworthy, and responsible. Some highlights of our progress are as follows. Navigation” was available in 6 cities, providing retrofitted our physical sites in an age-friendly
accessible navigation for over 900,000 times. manner, and we are progressively increasing the
Inclusive consumption “Senior Service Ambassadors” in Freshippo stores to
We pay special attention to accessibility and age-friendly issues. As of March Barrier-free communication: DingTalk has help senior shoppers find what they want, check out,
31, 2023, all of Alibaba's major APPs have completed accessibility and age- rolled out a barrier-free work platform to support carry items, and provide after-sales services. Amap
friendly upgrades. Taobao, Ele.me, Idle Fish, Amap, and Youku have been the hearing-impaired from over 80 cities across strives to help seniors solve their travel difficulties
rated and recognized in the first batch of "Excellent cases of age-friendliness the China Association of the Deaf with Hearing through a number of age-friendly initiatives. As of
and accessibility in online applications" by the China Academy of Information Disabilities system in their study and work through March 31, 2023, Amap has built more than 3,300
and Communications Technology. We have also released 11 free patents to such functions as speech-to-text conversion and WeCare stations for the elderly in 33 cities across
the public that cover accessibility and age-friendly features to promote the real-time AI captioning. China, with a year-over-year increase of more than
sharing of information about accessibility and age-friendly technologies. 2,000 WeCare stations.
Barrier-free cultural entertainment: Youku
Accessibility: We make every effort to understand and remove the barriers has been processing audiovisual works using
of the disabled community in using digital technology, so they too can enjoy barrier-free supporting technologies, by narrating
the benefits of digital technology. cinematic scenes without dialogue to assist visually
impaired people in understanding the content. In
Barrier-free consumption: The Taobao and Tmall APPs convert text into December 2022, Youku Barrier-free Theater added
speech via optical character recognition (OCR) technology. In FY2023, we a visually impaired authentication function, and we
helped more than 320,000 visually impaired people to shop with voice- have seen more than 330,000 content views from
overs that describe items photographed. Visually impaired users are able to its launch to March 31, 2023.
order food on Ele.me APP and shop on the Freshippo APP by using a screen-
reading guide. Alibaba Health has released medicine box supporting Braille- Age-friendly: We make continuous efforts to
Chinese conversion, enabling the visually impaired to use medicines safely provide well-designed, convenient, and efficient
and conveniently. digital services for senior consumers.

In online communities, we strive to build an


age-friendly community under the Special Action
Plan for Aging and Barrier-free Transformation
Executive Summary 15

Trustworthy consumption Responsible consumption make consumers aware of behavior that is low-
carbon, encouraging and guiding consumers to
Consumer privacy protection and data security are the bedrock for consumers During the past year, we worked on two fronts to adopt green consumption habits. In FY2023, a total
to enjoy a better life. We integrate the three principles of "minimized data promote responsible consumption to minimize the of 187 million users practiced low-carbon actions
collection", "ensured user awareness and choices" and "enhanced user data impact of consumption on the environment and through the Carbon88 ledger platform.
protection" into every part of our products and services, and make full use of society.
privacy technology and secure computing to ensure that consumer privacy Shaping a healthy consumption climate:
and data security is fully protected, so they can shop with trust. Guiding and facilitating green Provide positive guidance away from harmful
consumption transition: searches2 to minimize their risks to society. As
We provide users with privacy management features to fully respect and The Carbon88 ledger platform covers various of March 31, 2023, around 80 million potentially
protect their rights to make informed decisions on their data and privacy. consumption scenarios including online harmful searches have been automatically guided to
Users can check what personal data is being collected by APPs via the shopping, travel, food delivery, and second-hand educational content.
"Settings->Privacy" menu, and choose to deauthorize any private data. For transactions. The system uses carbon points to
ads and search recommendations, users can disable the use of personal
data for certain functions as appropriate. In terms of recommendation
optimization, a user feedback mechanism has been established to ensure
users' decision-making power over algorithm-based results.

Protect consumer information through full-link encryption and consumer


privacy number protection while continuously improving security
capabilities.
Taobao has encouraged third-party partners to upgrade their privacy
protection systems to better protect the sensitive information of tens of
millions of vendors and billions of users. As of the reporting date, the virtual
phone number service adopted by Taobao has covered 100% of active
consumers on the platform.

2 Harmful searches cover keywords related to wildlife, suicidal searches for harmful products, gaming addiction, and even crimes, which may bring harm and risks to society.
Executive Summary 16

5. Fueling small businesses for growth and employment Alibaba has been a firm believer and advocate especially excited to launch the AI model community
of open-source technology and open "ModelScope" in FY2023 to meet the needs of
In the context of digital transformation, MSMEs face three major challenges, ecosystems. We directly build and support the model customization, which has often been difficult
namely access to technology, market opportunities, and business largest open-source community in China. In 2022, for MSMEs due to high development thresholds.
competitiveness. As a technology platform company, Alibaba recognizes its we remained first among Chinese enterprises in ModelScope released over 300 models in its first
responsibility to integrate digital technology with the real economy to provide both the OpenRank impact and project activity, batch, among which over one-third were Chinese
more capabilities for MSMEs to achieve sustainable development in the digital and were awarded the "Outstanding Open-Source models, and covering major AI fields like vision,
transformation. In this process, we also contribute to large-scaled and high- Innovation Company" in the 2022 China Open- speech, natural language processing, and multi-
quality employment across the society. Source Cloud League (COSCL) Awards. We were modality.

Making technology more available


Access to cutting-edge technologies is the foundation of MSMEs’
development. While steadily developing leading technologies, we lead
in promoting the integration of technology and business by enhancing
technology's accessibility and affordability. We also strive to build an open
technology ecosystem, so that MSMEs can better benefit from the dividends of
innovation.

Technological innovation is inherently inclusive. Over the past decade,


through technical innovation and large-scale deployment, we have delivered
an 80% reduction in the cost of cloud computing power and a nearly 90%
reduction in the cost of cloud storage, thus enabling more MSMEs and
developers to access affordable computing power.

The integration of technology and business has also made technical


applications more accessible. Tens of millions of micro, small, and medium
merchants on our e-commerce platforms, such as those on Taobao and
Tmall have already been operating their businesses on our efficient cloud
computing. This integration of the latest cutting-edge technology and the
business of MSMEs is a defining feature of the fusion of digital technology
with the real economy made possible by our digital platforms. In addition, we
are providing cloud computing services to over 4 million clients worldwide.
Executive Summary 17

Boosting MSMEs with growth opportunities


and digital competitiveness
Our platform is a shared ecosystem jointly built by millions of MSMEs and over a professional low-code development toolkit latest AI language model, to further enhance the
one billion consumers. On the one hand, we power marketplaces that bring that supports external developers and in-house intelligence of instant message (IM), documents, low-
users and growth opportunities to MSMEs; on the other, we continuously employees to build various applications such as ERP, code design, video and audio, thus helping countless
deliver and upgrade an array of tools for business operations, decision- project management, and collaborative office in a MSMEs realize their digital and smart transformation as
making, collaboration, and management based on the integration of cloud, lower-cost and higher-efficiency way, dramatically soon as possible.
data, and intelligence, so that digital business capabilities can be accessible facilitating the digital transformation of MSMEs
enough to help MSMEs truly grow and compete. while spurring innovation and entrepreneurship in Digital business skills training: To achieve digital
software development. As of March 31, 2023, there transformation, MSMEs need not only access to but also
Digital business operation: On Taobao and Tmall, we have built a one-stop are over 5 million low-code applications and over mastery of the new digital tools. In FY2023, we provided
platform called Qianniu for merchants, providing a full suite of digital business 3.8 million developers on DingTalk. With the boom free e-commerce introductory courses for MSMEs,
services together with third-party service providers. In FY2023, more than 10 million in AI technologies, as the leading business services with more than 17 million class attendances, and we
merchants managed their stores through Qianniu. platform in China, DingTalk is in the process of developed the online learning system Cloud Classroom
building its intelligence functionality. We are in the for corporate clients, with over 6 million learners.
Data-driven intelligent decision-making: Intelligent decision-making is process of integrating Tongyi Qianwen, Alibaba's
becoming an increasingly critical capability for MSMEs to compete in digital
business. We have comprehensively upgraded Business Advisor, a data tool used
by approximately 6.5 million merchants by the end of March 31, 2023, to make core
data clearer and structurally simpler, improving the level of understanding of the
consumers. To serve a wider range of enterprises on our platforms and beyond,
we established Lingyang in FY2023, a service brand focusing on data intelligence
services for enterprises to assist them in making data applicable, relying on data,
and making decisions based on data.

Smart collaboration and management: As of March 31, 2023, there were


more than 600 million users, in more than 23 million mostly MSME businesses
and organizations on DingTalk. DingTalk was recognized by the General Office
of China’s Ministry of Industry and Information Technology as the 2022 National
Model Platform for SME Public Services. DingTalk builds a digital ecosystem
for merchants and developers with a "PaaS (Platform as a Service) platform +
low-code development toolkit" as its base. It provides rich API connectors and
Executive Summary 18

Creating and promoting large-scale, high-


quality employment
The empowerment of MSMEs with technology naturally yields opportunities
for large-scale and high-quality employment.

As a digital platform, our contribution to employment can be measured


by what we call the "three rings." The first ring consists of staff we directly
employ; the second ring is jobs arising directly from the platform ecosystem,
including entrepreneurial employment in MSMEs and new employment forms;
the third ring includes more indirect jobs arising across the supply chains and
service providers. According to the latest estimate by a research team from
Renmin University of China, the Alibaba ecosystem created or supported,
directly or indirectly, a total of more than 70 million jobs in 2022.

The growth of the digital economy can bring about a rise in job
opportunities and incomes, and stimulate more workers to start their
own businesses or choose new forms of employment. As of March 31,
2023, the number of digital occupations marked in China has reached 97,
including knowledge-intensive jobs such as artificial intelligence trainers and
blockchain application operators. We have targeted the building of training
platforms to help more people find high-quality employment opportunities in
the digital transformation. In March 2020, DingTalk and the China Employment
Training Technical Guidance Center of the Ministry of Human Resources and
Social Security jointly launched the new career online learning platform,
focusing on new career digital resource training. As of March 31, 2023, the
learning platform training has helped 2.3 million person-times obtain digital
manager certification.
Executive Summary 19

6. Propelling inclusive rural development through digitalization


The urban-rural gap remains a great inequality challenge in China. Alibaba has persistently worked in four directions to help bridge the urban-rural gap and promote rural revitalization. We help by
boosting the rural economy through inclusive digital platforms, upgrading the rural value chain, nurturing rural talent development, and facilitating vibrant rural communities.

Expanding rural e-commerce markets


We continue to expand e-commerce to less
developed rural areas in China to boost local
economies. In FY2023, the sales of 832 counties
previously categorized as impoverished in China
have exceeded RMB130 billion on Alibaba’s
platforms, and the total sales of 160 key counties
for rural revitalization in China exceeded RMB4.3
billion.

Upgrading the rural value chains


We assist rural villages in building fundamental
business capabilities in direct procurements,
logistics, and digitalization to make agriculture
more professional and digital. These efforts are
coupled with brand building and developing
tertiary service industries, to upgrade the entire Freshippo has facilitated the upgrade of agricultural production and business models and incomes through the direct purchase model,
rural value chain. buying from rural sellers. It plans to establish 1,000 "Freshippo Villages" in ten years. As of March 31, 2023, more than 140 Freshippo villages/
counties have been established in 25 provincial-level regions across China.

In rural logistics, Cainiao has set up more than 1,460 county-level shared distribution centers across China. It has also built nearly 50,000
posts in villages and towns to improve distribution efficiency3 and enable consumers in rural areas to more conveniently enjoy e-commerce.
Moreover, Cainiao launched accessible supply chain projects4 for agricultural products in 264 counties across 28 provinces in China.

In rural branding and cultural tourism development, Alibaba designers have crafted distinctive branding solutions for 13 villages; Fliggy
launched a program called "Digital Strategy of Discovering Beauty with Philanthropy" which has been selected into the Cultural Tourism
Marketing Boutique Promotion Case Industry List of the China Association of Travel Services.

3 The projects refer to promoting the efficiency of express delivery in rural areas.
4 The projects utilize the logistic technology and the supply chain capacities to sell agricultural products from rural areas across China.
Executive Summary 20

Nurturing rural talents development and Providing training on digital skills for rural Strengthening and broadening rural primary education
facilitating energetic rural communities residents As of March 31, 2023, through the "Cloud for Youth" Program, we have deployed
As of March 31, 2023, we had built 77 regional cloud computer rooms to 102 schools, serving over 60,000 teachers and students.
We introduce talents to rural areas to spur rural
digital talent training bases jointly with regional Recently, we have partnered with the UNESCO Chair on Artificial Intelligence in
development, while also making an effort to attract
governments, enterprises, and specialized Education to explore the AI learning space in the future and leverage on the
back and retain people in their rural hometowns by
industrial parks, offering over 1,200 classes experience in China, to contribute to developing a pathway for globally minded AI
providing favorable job opportunities and training.
attended by over 190,000 attendances. education.
On top of that, we contribute in such areas as
elementary education, culture, medical care, and
public health to build more dynamic and resilient
rural communities.

Bringing digital talent to the rural area


We have dispatched a total of 27 rural
commissioners and over 220 rural technology
officers. We run programs that promote digital
education, cultivate rural talent, create local jobs,
and improve schools and healthcare facilities. Our
team of rural commissioners was awarded the
honor of Outstanding Team for Contributions to
"Sannong" (Agriculture, Rural areas, and Farmers)
in 2022 by the General Office of the Ministry of
Agriculture and Rural Affairs and the Policy and
Regulations Department of the National Rural
Revitalization Administration.
Executive Summary 21

7. Facilitating participatory and sustainable philanthropy


We connect with a wide philanthropic ecosystem through the advantages of platforms in aggregating people and organizations and leverage the power of technology to address diverse social
challenges. Starting with our employees, we extend to those across our entire ecosystem through smart mechanisms, aiming to promote extensive social involvement and "make it easy to do good,
anywhere". In FY2023, Alibaba was honored with the 2023 Philanthropic Enterprise of the Year Award in the 7TH China Annual Conference on Philanthropy held by China Philanthropy Times.

Building a culture of participatory philanthropy


We inspire and empower employees to engage in philanthropic actions. In FY2023, the
volunteering hours of employees totaled 250,144 hours. More than 110 company Hugs and
Help groups were active in over 1,000 philanthropic activities, covering topics of environmental
protection, animal protection, and education.

Empowering philanthropy with technology


We help improve operational efficiency and establish better solutions to social challenges by
leveraging our expertise and technology. We further share our technical solutions with philanthropic
organizations and volunteers to boost the development of philanthropy across society. In FY2023, we
joined hands with the Beijing Illness Challenge Foundation to release the first-ever "Rare Disease Map"
in China, providing more comprehensive and professional information to improve the convenience
and accuracy of care for patients. DAMO Academy's self-developed smart screening tool for
Alzheimer’s disease with AI technology has helped screen 118,746 seniors with over 600 volunteers.
Our Green Code platform has attracted more than 370 philanthropic organizations and supported the
digitalization of over 100 of them.

Shaping the philanthropic ecosystem


We are building an extensive philanthropic ecosystem backed by our platform, engaging more
people in the participatory philanthropy more efficiently and conveniently. In FY2023, Alibaba
Group donated a total of RMB399 million to the Alibaba Foundation, mainly to philanthropic
programs for COVID-19 relief, education, and environmental protection. More than 2.04 million
merchants and 470 million consumers took part in philanthropy on our Taobao and Tmall
platforms in programs such as Goods for Good, whose funds have helped more than 9 million
person-times in projects assisting those in need cumulatively.
Executive Summary 22

8. Building secure and ethical digital Privacy protection and data security Science and technology ethics
trust In terms of orientation, we prioritize the privacy and security The rise of applications represented by generative AI technologies
As digital technology brings unprecedented protection of user data as foundational. Alibaba Cloud advocates has presented both new opportunities for business and social
breadth and depth of collaboration, and and follows three principles of data security: "you own your data; development. Meanwhile it also faces numerous challenges in
transforms both work and life at an accelerating you manage your data; your data is protected". security, trust, and ethical risks.
pace, trust remains the cornerstone of business
development and a prerequisite for Alibaba to In terms of governance mechanisms, Alibaba Group has In terms of orientation, the parallel development of AI technologies
fulfill our social responsibilities. In this light, we established a structure for data security management at the and science and technology ethics are the twin engines driving the
focus on building secure and ethical digital trust in group level, led by our Risk Management Committee. This effort sustainable development of technologies.
two ways: 1) ensuring privacy protection and data is replicated within each business unit with a dedicated Personal In FY2023, we established and released six basic principles to
security and 2) science and technology ethics. We Information Protection Officer (PIPO), reporting directly to the define ethical technology: people-oriented, inclusiveness and
do so with regards to our positioning, governance president of each business line. Alibaba has so far formulated and integrity, privacy protection, security and reliability, trustworthiness,
mechanism, and technology, while continuously released over 10 institutional norms on data security and privacy and openness and co-governance. We are implementing these
improving our corporate governance mechanism. protection. Guided by the Data Security Standards (General Outline), principles in specific business practices.
This is the only way to truly harness technology for they cover the entire lifecycle of data and personal information, In terms of governance mechanisms, in January 2023, we formally
good. Our goal is not only to pursue advances in including data collection, flow, storage, use, and destruction. released the Technology Ethics Review Management Norms, as
technology, but also to strive to be a leader in safe Employees are required to participate in data security training and guidance for how technology ethics review should be implemented
and ethical data intelligence trust. obtain related certifications. In FY2023, the total coverage of “Security in business.
Red Line Certification” is 100%. In terms of practical actions, we have focused on the establishment
of a risk management process and technology.
In terms of technological capabilities, we keep strengthening To take algorithm governance as an example, we actively respond
our privacy protection and data security capabilities to the highest to the Regulations on Administration of Algorithm Recommendation
standard. Following the three top-notch technical routes of multi- in the Internet Information Services (IISARM) by developing a
party secure computing, federated learning, and trusted execution series of management specifications, focusing on promoting
environment, we are able to deliver business results with the algorithmic fairness and transparency to build an information flow
absence of sensitive information, striking the balance between data recommendation system that serves multiple parties.
flow efficiency and data security. The Dataphin privacy computing In terms of exploring technology solutions: In response to the
technology of Lingyang currently holds 19 patents on cryptography emerging threats of attacks against AI, we have developed a testing
algorithms, and has been certified with ISO27001/27018, and and defense system to enhance the robustness of technical models,
awarded the Leading Technology Achievement of the Year at the and we open-sourced the industry-first robust learning framework
3rd China Digital Economy Technology Conference. for visual models, so as to expedite the development of robust
technologies by others in the industry.
Executive Summary 23

Chapter 1 12.9 % 1.419 million MtCO e 2 5.7 % 22.907million MtCO e 2 1.215


Restoring our green planet
Net emissions from our own Emission reductions throughout The value chain carbon intensity Enabling and engaging the Our self-built data centers
operations (Scopes 1 & 2) were our own operations were 1.419 was 8.7 MtCO2e/million RMB, a platform ecosystem (Scope 3+) to achieved a decrease of PUE to
4.681 million MtCO2e, a year- million MtCO2e, a year-over-year year-over-year decrease of 5.7%. reduce 22.907 million MtCO2e of 1.215.
over-year decrease of 12.9%. increase of 128.9%. emissions in total.

Chapter 2 Over 60 49.1% 41.9% 51hours Top 5


Supporting our people
Employees hail from more than Women account for 49.1% of Women account for 41.9% of Average training duration of 51 Among Top 5 Chinese
60 countries and regions. Alibaba's total employees. Alibaba's management. hours per person. enterprises in the “Forbes 2022
Global Best Employers.”

Chapter 3 100 % Around 80 million times GFSI China Technologies


Food Safety Case Studies
Over 900,000 times Over 320,000
Enabling a
Taobao's number protection The "GreenNet Program" Amap provided accessible The Taobao and Tmall APPs
sustainable strategy has covered 100% of automatically guided a total of
"The case of social co-governance
navigation over 900,000 times. have served over 320,000
of network catering" of Ele.me was
digital life active users. around 80 million potentially visually impaired users
awarded the Contribution Award
harmful searches to educational
of GFSI China Technologies Food
ESG Performance Summary
content.
Safety Case Studies

Chapter 4 Over 70 million Over 47million No.1 2022 National Public Service
Demonstration Platform
Over 17,000
Fueling small
for Small and Medium
businesses Alibaba ecosystem created or On Alibaba.com, over 0.2 million We continue to be ranked first Enterprises We hold more than 17,000
supported, directly or indirectly, sellers across 190 countries in open-source activity and global patents, and the year-
DingTalk was awarded the
a total of over 70 million jobs in and regions sourced business influence among Chinese over-year growth was over 20%
"2022 National Public Service
2022. opportunities from or completed enterprises.
Demonstration Platform for Small
transactions with over 47 million
and Medium Enterprises."
buyers.
Executive Summary 24

Chapter 5 Over RMB 130 billion Over 1,460 102 schools 14,002 doctors Global logistics partner
Enhancing
Counties previously categorized Cainiao has enhanced rural The "Cloud for Youth" program Rural medical expertise Cainiao inked a global logistics
community
as impoverished under China's logistics efficiency and built over has implemented in 102 schools learning platform has provided cooperation agreement with
inclusion and national standards increased 1,460 country-level smart logistics serving over 60,000 teachers trainings for a total of 14,002 the United Nations World Food
resilience sales on our platforms to more centers, along with nearly 50,000 and students. local doctors. Programme (WFP), becoming a
than RMB130 billion. posts in villages or towns. global logistics partner of WFP.

ESG Performance Summary

Chapter 6 250,144 hours The first rare


disease access map 118,746 seniors 11,722 people 2023 Philanthropic
Enterprise
Facilitating participatory
philanthropy The total number of employee Alibaba Health released the Alibaba’s self-developed smart The "Daily Positive Energy" Alibaba was awarded the
voluntary service hours is first rare disease access map in screening tool for Alzheimer's program, with ten years of "2023 Philanthropic Enterprise."
250,144. China. disease using AI technology has devotion, has given positive
helped screen 118,746 seniors. recognition and encouragement
to 11,722 people.

Chapter 7 Building trust 60% 30% 100% Titanium Award for


Digital and Trustworthy
The six basic principles
The percentage of independent The percentage of female The exams on the Alibaba Group Cloud Six basic principles for science
directors has increased to 60%. directors has reached 30% from Code of Business Conduct,the and technology ethics
Alibaba Cloud won the highest
20%. compliance and risk awareness governance of the Group –
Titanium Award for Digital and
examination,and the"Safety people-oriented, inclusion and
Trustworthy Cloud, awarded by
Red Line Certification"launched integrity, privacy protection,
the British Standards Institution.
with 100% employee coverage. security and reliability,
trustworthiness, openness and
co-governance.
Executive Summary 25

Cainiao won the Gold Award for Innovation in Internet platform enterprise in the China Caijing Dual Carbon Leadership Ranking
Corporate Social Responsibility Development of Public Companies.
Transportation and Logistics in the Asia- Index, awarded by the China Social
1st
Pacific Stevie® Awards. Responsibility 100 Forum.

1st

Alibaba’s rural commissioner team was


Among the Gartner Supply Chain for 2023. awarded honor.
Top 25 Outstanding Team for Contributions to
"Sannong" (Agriculture, Rural areas and
Farmers) in 2022

Fortune China
Listed in China ESG Influence Ranking

Amap's "Green Travel Carbon Inclusion Project" The green and low-carbon practice of Alibaba
was selected by the Ministry of Ecology and data centers was selected by the China Energy
Environment of China and the Office of National Research Society and the Organizing Committee
Spiritual Civilization in the "Beautiful China, I am of the CREC2022.
a practiser" 2023 Action Plan to raise citizens' Forbes 2022 Global Best Employers.
awareness of ecological civilization. Top 10 Typical Carbon Neutrality
Cases in China in 2022 Top 5 Chinese Enterprises
Top 10 Public Participation Cases
Executive Summary 26

Fresh start The nature of our social responsibilities is ever changing. Since the past year, the global post-
pandemic economic recovery still lacks stability, while new opportunities and challenges face
Logistics Network Limited, and Digital Media and Entertainment
Group, in addition to a number of other business companies.
the new high-quality growth model that is needed to emerge. We see both the accelerated
deployment of renewable energy around the world potentially heralding the "beginning of Importantly, the restructuring will not change our ESG strategy or
the end of the fossil energy era" (Ember, 2023), and also the governance challenges posed commitments. Instead, it will enable Alibaba to better leverage
by breakthroughs in generative AI technologies. These changes are continuing to reshape the strengths of our diverse advantages, to become more agile
the social aspirations and demands of all of society, and we are constantly aligning our in reacting to external changes and seizing opportunities, both
strategic goals with the ever-changing environment as well as the shifting needs of our key at the market and industry levels. We will build on our existing
stakeholders. ESG commitments and experiences, further integrate social
objectives into our business strategy and business design,
We believe that however the world may change, clearly defining our social responsibility especially for continuously exploring the connotation, objectives
around our stakeholders’ interests, leveraging the power of technology, and engaging the and realization of social responsibility with the characteristics
stakeholder ecosystem will always be the three pillars of our ESG framework. This is the social of platform enterprises. We will engage more stakeholders in
responsibility that a technology platform-based enterprise should assume, as well as an tackling critical social challenges in a nimbler way. Joining hands
opportunity. Our goal is to keep innovating technologies and practicing social responsibilities with our partners, we aspire to build a sustainable future.
for the social good.

On March 28, 2023, Alibaba announced a new organizational and governance structure,
with six major business groups consisting of the Cloud Intelligence Group, Taobao and Tmall We are just
Group, Local Services Group, Alibaba International Digital Commerce Group, Cainiao Smart beginning this new journey.
Restoring Our Supporting Our Enabling a Sustainable Fueling Small Enhancing Community Facilitating Participatory 27
I I I I I I Building Trust I Appendices
Green Planet People Digital Life Businesses Inclusion and Resilience Philanthropy

Restoring our
green planet
The world's continued ecological degradation starkly represented
by ongoing climate change and biodiversity loss poses an
increasingly severe threat to humanity. To flip around this trend
and preserve a secure "operating system" for humans, we need
both targeted technological innovations and the involvement
of all stakeholders. The digital circular economy brings new
possibility to this resolution. Together with our ecosystem
partners, we seek to practice digital circular business and do our
utmost to aid in restoring our green planet.

Our environmental actions focus on:

● Solidly
promoting carbon neutrality P30
● Conserving and restoring nature P53
Restoring Our Supporting Our Enabling a Sustainable Fueling Small Enhancing Community Facilitating Participatory 28
I I I I I I Building Trust I Appendices
Green Planet People Digital Life Businesses Inclusion and Resilience Philanthropy

Overall progress in carbon neutrality Creating a green and low-carbon cloud

1.215
Self-built data centers achieved a decrease
53.9%
53.9% of energy consumption of self-built
6.863 million MtCO2e
Assisting more organizations in reducing their
in PUE (Power Usage Effectiveness) from data centers was clean energy, a significant reliance on locally deployed data centers and
1.247 in FY2022 to 1.215, maintaining a progress compared to 21.6% in FY2022, servers by migrating to the cloud, empowering
leading position in Asia maintaining a leading position in China clients to reduce emissions by 6.863 million MtCO2e

12.9% 1.419 million MtCO2e


Building circular logistics
Restoring
Net emissions from our Operational emissions
own operations were 4.681 reductions were 1.419 million

our green planet


million MtCO2e, a year-over- MtCO2e,
year decrease of 12.9% a year-over-year increase of
128.9%

5.7% 22.907 million MtCO2e


● Making innovation in low-carbon transportation

29 33%
Carbon intensity of our value We have engaged and enabled
chain was 8.7 MtCO2e per the platform ecosystem (Scope 3+) Over million orders
million RMB, a year-over- to reduce 22.907 million MtCO2e of
year decrease of 5.7% total emissions Xiaomanlv ("little donkey") The proportion of electric vehicles used in the
has completed over 29 intra-city distribution fleet used by Cainiao Direct
million orders Delivery (Cainiao Express) reached 33%

Conserving and restoring nature 28,771.7 MtCO2e


We worked to achieve intelligent optimization of the ordering and transportation
routes for direct retail sales, effectively reducing over 28,771.7 MtCO2e of emissions

● Working towards circularity in packaging

Business Biodiversity Conservation Cases


"Digital Platform Assists in Biodiversity Protection" program was selected into the
Business Biodiversity Conservation Cases at the 2022 UN Biodiversity Conference (COP 15)
23.82 million
Over 23.82 million cartons were recycled and reused in Cainiao Posts
Restoring Our Supporting Our Enabling a Sustainable Fueling Small Enhancing Community Facilitating Participatory 29
I I I I I I Building Trust I Appendices
Green Planet People Digital Life Businesses Inclusion and Resilience Philanthropy
Restoring
Our Green Planet

Environmental strategy
and governance
When we apply Alibaba's three pillars of “Technology, board level, the sustainability steering committee
Social responsibility, and Stakeholder ecosystem” to and the ESG Strategy and Operation Department
our environmental responsibilities, we arrive at our at the Group level, and the ESG working group that
capacity to bring about a “Digital-Circular-Economy”. connect all business units, with a Group-wide ESG
Following this principle, we have continuously indicator management system in place.
deepened efforts in environmental fields. We have
defined four ESG issues related to the environment on We present our recent developments in two
top of our explicit carbon targets proposed in 2021, domains: solidly promoting carbon neutrality and
namely reducing packaging, water conservation, conserving and restoring nature.
reducing and recycling waste, and protecting
ecosystems. To develop an effective governance
mechanism that secures our strategic ESG objectives,
we have set up the sustainability committee at the

Environmental strategy and governance


Restoring Our Supporting Our Enabling a Sustainable Fueling Small Enhancing Community Facilitating Participatory 30
I I I I I I Building Trust I Appendices
Green Planet People Digital Life Businesses Inclusion and Resilience Philanthropy
Restoring
Our Green Planet

Solidly promoting carbon neutrality


In FY2023, we followed the “Digital-Circular-Economy” principle to
explore opportunities of cutting carbon pollution while still promoting
economic growth. In addition to energy transformation, we have
adopted a variety of efficiency-enhancing and emission-reducing
methods. Particularly, we have been making solid progress towards
emission reduction via innovations in digital technologies and platform
mechanisms.

Progress in carbon Greening our operations Engaging and enabling


neutrality and value chain decarbonization through our
platform ecosystem

Solidly promoting carbon neutrality


Restoring Our Supporting Our Enabling a Sustainable Fueling Small Enhancing Community Facilitating Participatory 31
I I I I I I Building Trust I Appendices
Green Planet People Digital Life Businesses Inclusion and Resilience Philanthropy
Restoring
Our Green Planet

Progress in carbon neutrality Net emissions in operations and


related emission reduction
In 2021, we made three pledges as follows:
Decarbonize Alibaba (Scopes 1 and 2): By 2030, we In FY2023, direct net GHG emissions (i.e., Scope 1)
will achieve carbon neutrality in our own operations. from Alibaba accounted for 0.926 million MtCO2e,
Green the value chain (Scope 3): By 2030, we will including stationary combustion (such as the use
collaborate with our upstream and downstream value of natural gas), direct fugitive emissions (such
chain partners to cut emission intensity by 50% from the as refrigerant leakage), and mobile combustion
base year of 2020. Alibaba Cloud will achieve Scope 3 (company-owned transportation in our retail
carbon neutrality during the same period. operations). Indirect net GHG emissions (i.e., Scope
Enable a low-carbon circular digital ecosystem 2) from purchased electricity and heat were 3.755
(Scope 3+): Beyond our own operations and direct million MtCO2e, mainly used for operating cloud
value chain, Alibaba pledges to leverage our digital computing data centers, retail stores, offices, and
platforms to encourage even broader participation by warehouses. Net emissions from our own operation
stakeholders that our efforts can reach. By 2035, we (the sum of Scope 1 and 2) were 4.681 million
will facilitate 1.5 gigatons of GHG (greenhouse gas) MtCO2e, a decrease of 0.691 million MtCO2e, or 12.9%
emission reduction over 15 years across Alibaba's year-over-year. The inspection was completed by the
digital ecosystem. China Environmental United Certification Center (CEC)
In FY2023, we took substantial steps toward meeting our and audited by Bureau Veritas. Through intelligent
three pledges, based on the principle of "direct carbon optimization for energy conservation and higher
reduction takes precedence over carbon removal, and efficiency, clean energy sourcing, and distributed
carbon removal takes precedence over offsets." PV, we achieved reductions of 1.419 million MtCO2e
in our operations (Scope 1 and 2) in FY2023, a year-
over-year increase of 128.9%.
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Carbon intensity along value chain and low-carbon efforts (Scope 3)

In FY2023, indirect GHG emissions intensity within Alibaba’s value chain (i.e., Scope 3), which was
calculated based on the carbon inventory principle of accuracy and accessibility, were lowered
from 9.2 MtCO2e per million RMB in FY2022 to 8.7 MtCO2e per million RMB. We have achieved
a reduction of 400,000 MtCO2e in our value chain through promoting digital optimization and
energy transition in our logistics services, enhancing energy efficiency and utilizing clean energy
in our leased data centers, and encouraging employees to adopt low-carbon business travel
behaviors. Combining these efforts with our projects on carbon removal and carbon offsets, we
have achieved a year-over-year decrease of 5.7%1 of our carbon intensity throughout the value
chain.

So far, we have made solid progress in FY2023 in maintaining business growth while marching
towards our operational and value chain carbon neutrality goals. Further cutting carbon
pollution while promoting business growth will be a persistent long-term challenge. We will
continue to accumulate experience during this process, including exploring relevant cutting-
edge investments2 from the beginning of 2022 to the present, combining short- to long-term
planning, and incorporating carbon reduction targets and methods into business design, to
promote the high-quality achievement of our ultimate goals.

Engaging and enabling decarbonization through our platform


ecosystem (Scope 3+)
FY2023 marks the first, groundbreaking year of our Scope 3+ target of reducing 1.5 gigatons of
carbon emissions in 15 years in our ecosystem. Unlike with Scope 1, 2, and 3, advancing Scope
3+ requires establishing new scientific, and credible standards while advancing carbon reduction
goals. We focused on three directions. First, we published our Scope 3+ methodology, which
clarifies definitions and measurements. Second, we prioritized our low-carbon actions in eight
areas, i.e., low-carbon travel, low-carbon dining, low-carbon products, reuse of idle items, low-
carbon cloud, low-carbon offices, low-carbon logistics and low-carbon production, achieving
an emission reduction of 22.907 million MtCO2e in Scope 3+, along with an emission reduction
path to accomplish our long-term goals mapped out. Third, and more significantly, in terms
of involving stakeholders, our Carbon88 ledger platform and Low-carbon Friendly Products
Program have amplified decarbonization through bringing 409 brands, 1.91 million products,
and 187 million users to participate in emission reductions. In this way we achieve our initial goal
of giving full play to the power of the platform ecosystem to drive the transformation to a digital
circular economy from the supply and consumption sides.

1 The year-over-year decrease in this case is calculated based on actual data, rather than equal to the decrease between 8.7 and 9.2. 2 From the beginning of 2022 to the present, we have continued to invest in low-carbon in two areas, namely green technology and digital energy management. For green technology, investment
projects include Zhejiang Noah Fluorochemical Co., Ltd. which focuses on the research, development, and manufacturing of immersion cooling fluids applied in low-carbon data centers and efficient and environment-friendly fire extinguishing agents. For digital energy management, investment projects include EQuota Energy, an AI
and big data driven company that provides energy and carbon-related products and services. These offerings empower enterprises, industrial parks and the government to effectively manage GHG emissions, set emission reduction objectives and forecast emission trends, hence promoting sustainable development.
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Greening our operations Sustainable office campuses


and value chain
Our low-carbon efforts start from our own operations We have developed systematic principles of the recycling of various resources. Meanwhile, we
To attain operational carbon neutrality and and work spaces. We provide a green, healthy, safe, sustainable campus construction. During the early continue to engage our employees and suppliers in
halve the carbon intensity of the value chain, we and vibrant work environment for our employees construction of a campus, we adopt more eco- low-carbon practices. Overall, we achieved 21,409.4
have integrated carbon goals and technological while promoting a green and low-carbon mode of friendly and sustainable designs, as well as low- MtCO2e reduction throughout the operation (Scope
innovations into our business processes, and shaped working. carbon construction and renovations. During 1 and 2) of our campuses and 8,067.9 reduction
four high priority emission reduction scenarios regular operations, we continuously explore digital throughout the value chain (Scope 3).
by applying digital intelligence for lower energy intelligence to save energy and boost efficiency, thus
consumption and higher efficiency, transforming effectively promoting energy transformation and
the way we use resources, and influencing the
stakeholder ecosystem. These four scenarios are
sustainable campuses, green and low-carbon cloud,
smart circular logistics, and sustainable retail stores.
Based on these, we have extended our influence
from ourselves to the larger value chain.

Sustainable office campuses

Green and low-carbon cloud

Digital and intelligent circular logistics

Sustainable retail stores

Decarbonizing the value chain

Solar power in Alibaba campus

3 "QinCheng Intelligent Space" is a brand that provides smart campus services for various business groups/companies/units of Alibaba Group.
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Sustainable design Green construction and low-carbon Sustainable and participatory operation
renovation
Design for low-carbon commuting: We encourage Through IoT (Internet of Things) and digital clean energy sourcing also covers properties for
employees to use public transit for daily commutes and set Green construction: All the new campuses built technology, comprehensive digitization of campus external rental. Our properties for external rental
up metro station shuttle buses in some campuses in China. from 2022 onwards are benchmarked to LEED Gold infrastructure has been achieved, and an intelligent in Zhejiang Province, as the first pilot, consumed
At the same time, we widely deploy charging stations in our standards, with various low-carbon considerations in decision-making engine for campus facilities and over 4.477 million kWh of clean energy in FY2023,
self-operated campuses so as to encourage employees' the use of materials, construction, and other aspects. equipment has been implemented by combining resulting in 3,149.4 MtCO2e reduction.
use of EVs for low-carbon commutes. As of March 31, 2023, a total of 131,000 square pedestrian flow, weather, and environmental
meters of our campuses had been certified as LEED parameters to achieve intelligent management of To recycle assets, office furniture and other assets
Design for biodiversity:Respecting the environmental Gold. campus facilities and equipment. This has optimized are managed online, and we optimize the processes
attributes of each campus, we actively preserve and energy use in campuses, with a reduction of 2,866.2 of moving, transferring, scrapping, and disposing of
plant native vegetation, regularly monitor and maintain MtCO2e in Zones A and B of Xixi Campus in FY2023. assets. A total of 62,000 pieces of furniture were put
ecological spaces, and make use of roof spaces that can We have also gone paperless in the office, replacing back to use in FY2023.
be used for roof greening to increase biological habitat paper signing with electronic signing of legal
space. contracts, making the process efficient, secure, and To engage employees in low-carbon practices, we
low-carbon. In FY2023, the number of electronic have developed a digital management platform that
Design against extreme weather: We follow the contracts signed accounted for 93.9% of the total covers 18 types of low-carbon office behaviors3, and
"sponge city" concept to ensure drainage and prevent number of signed contracts. encourages more employees to participate in low-
flooding in our campuses. We enable fire prevention, carbon practices. In FY2023, over 110,000 employees
seismic resistance, evacuation design for civil defense To accelerate the energy transition, we deploy completed 3 million instances of low-carbon
and UPS (uninterruptible power supply) under special distributed solar panels on rooftops and source clean office behaviors. Besides, over 70,000 employees
circumstances. energy. In FY2023, the clean energy consumption completed 1.18 million instances of four types of low-
of self-operated campus totaled 27.858 million kWh carbon business travel behaviors4, resulting in 4,918.5
Design for water conservation: We design rainwater and reduced 18,543.2 MtCO2e of emissions. Our MtCO2e reduction.
collection and purification facilities in our campuses to
Low-carbon renovation: We cut emissions from
maximize the recycling of rainwater, and reuse it for garden
renovations through the extensive use of assembled
irrigation and other purposes. Meanwhile, we install
components. Taking Gaoqiao Campus as an
water-saving devices, tap water systems and wastewater
example, standardized construction parts such as
recycling devices, among others, to save water.
implanted assembled walls, assembled bathrooms,
and modular conference rooms reduce construction
solid waste by over 80% compared with conventional
renovations, equivalent to a 28% reduction in life-
cycle emissions. Moreover, over 60% of these
materials are recyclable.

3 18 types of low-carbon office behaviors: turning off the air conditioner timely, switching off the lights timely by scanning QR codes, packaging food without using cutlery, recycling plastic bottles, packaging food without using plastic bag, Clean Your Plate Campaign, recycling cardboard boxes, climbing stairs, bringing your own water
cup, using centralized office when work in campus at weekend, making the best use of notebook materials, low-carbon relocation, Hitchhiking, applying for mini business cards, turning off the lights timely, turning off the TV timely, double-sided printing, picking up express delivery for colleagues.
4 4 types of low-carbon business travel behaviors: taking the train instead of the plane, carpooling with multiple people, taking the company bus, and taking the subway.
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Green and low-carbon cloud

Cloud computing serves as a vital and fundamental


basic facility for the development of the digital
economy. Ensuring computing power becomes
more efficient and low-carbon has grown even
more important today as the AI revolution speeds
up. As the world-leading cloud computing service
provider, we strive to be a leader in low-carbon
cloud computing. To achieve this, we need not only
to build our clean cloud, but also to enable other
organizations to meet their data processing and
storage needs by transitioning to the cloud with
less reliance on local data centers and servers.
In addition, we provide cloud-based digital
tools for other enterprises to achieve both digital
transformation and emission reduction. In this way,
we can truly leverage these green fundamental
capabilities to boost the digital and circular economy
transformation.

1.105 million MtCO2e


Alibaba Cloud's self-built data centers
emission reuction from clean energy transition

0.363 million MtCO2e


Alibaba Cloud's leased data centers emission
reuction from promoting consuming clean
energy and trading RECs

For more details: For more details: For more details:


Please refer to Chapter 1 Creating a clean cloud P36 Please refer to Chapter 1 Engaging and enabling Please refer to Chapter 1 Engaging and enabling
decarbonization through our platform ecosystem P46 decarbonization through our platform ecosystem P46
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Energy conservation and efficiency Resource usage transformation Promoting green transformation of the
improvement via digital intelligence Promoting new energy consumption by supply chain
We pledge that clean energy will account for 100% of
collaborative scheduling use of electric
We have further reduced PUE through scientific and the total energy supply for cloud computing as of 2030. power and computing power By enhancing the monitoring, measurement, and
technological innovation and intelligent operation and In FY2023, we continued to increase the use of clean analysis capabilities of energy consumption and
maintenance in a low-carbon way. In FY2023, our self- energy and lead the industry, significantly increasing the We have become an industry leader in promoting new
emissions of leased data centers, we motivate more
proportion of clean energy in total energy consumption energy consumption through collaborative scheduling
built data centers witnessed a decrease in PUE from of computing power and electric power. In June 2022,
suppliers to continually step up their green efforts,
1.247 in FY2022 to 1.215, continuing to maintain a in our self-built data centers from 21.6% in FY2022 with an assessment mechanism in place to regularly
Alibaba Cloud’s data centers cooperated with North
leading position in Asia. to 53.9%. This resulted in emission reduction of 1.105 evaluate their low-carbon performance. Meanwhile, we
China Electric Power University to jointly undertake the
million MtCO2e, leading the industry. Specifically, our research project based on flexible load scheduling. provide resources our suppliers need, share standards
In terms of scientific and technological innovation, self-built data centers in Guangdong Province have We conducted validation experiments in Alibaba's and technologies of our self-built data centers to help
we focus on exploring and developing efficient taken the lead in achieving carbon neutrality, with data centers in Zhangbei and Nantong, achieving
them optimize the PUE of leased data centers, and
software and hardware collaboration modes, energy- clean energy accounting for 100% of the total energy the first co-scheduling of data centers and electric
impel them to consume clean energy and trade RECs.
5
consumption and a small amount of carbon removal power systems for the common goal of promoting
saving servers, liquid-cooling server technology, new energy consumption. This is regarded as the first In FY2023, the emission reduction brought by the latter
high-performance power supplies, digital resource and offsets. We also conducted the collaborative was 0.363 million MtCO2e. Six of our leased data centers
step towards cross-regional scheduling optimization
management platforms, and other cutting-edge scheduling of our data center and the electric power validation experiments in China. in Guangdong achieved a clean energy consumption
technologies for the purpose of energy conservation system for the common goal of promoting new energy rate of 100%.
and efficiency improvement in all aspects of operations. consumption in FY2023 for the first time in the industry.
In terms of intelligent operations and maintenance, We have steadily improved the equipment recycling
our multi-disciplinary teams with expertise in electrical and circulation, and built our own recycling centers for
engineering, HVAC, and automation have developed testing, refurbishment, dismantling, and maintenance
a digital O&M strategy management platform, which of servers and spare parts, with an aim to extend the
designs 20 kinds of standard strategies, enabling real- lifecycle of servers. In FY2023, we had 25.73 million
time management of the data centers across China. cores of warranty-extended servers, piloted a five-to-
In addition, we have optimized O&M strategies with six-year warranty for servers, and made cyclic utilization
intelligent algorithms, and built coupled system models of 49,747 servers through refurbishment.
grounded on water cooling systems and physical cores
of each device, while continuing to study massive
historical data to improve models and fine-tune
1.215
PUE of self-built data centers
O&M. As of March 31, 2023, after deploying intelligent
algorithm O&M strategies in our seven large-scale data
centers, the energy consumption of cooling systems
had reduced by 5-11%.
53.9 %
Self-built data center's percentage of clean
energy consumption in total energy consumption

5 The essence of collaboration of computing power and electricity power refers to the flexible adjustment of the spatiotemporal distribution of electricity load in data centers in the power grid by optimizing and scheduling massive
computing tasks and resources in the computing power network. This technology can reduce the energy cost and GHG emissions of data centers, enhance the renewable energy consumption capacity of the power system,
support the sustainable development of digital networks and the safe, economical, and low-carbon operation of the power system, and assist in achieving carbon neutrality goals.
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Green and low-carbon scientific and technological innovation in data centers


Software and hardware collaboration Liquid-cooling server technology High-performance power supply
Collaborative innovation of software and hardware on computing, storage, and Our dominant immersive liquid-cooling architecture with consolidated infrastructure Our dominant high-performance Panama power solution, featuring improved power
interconnecting components has further improved data processing performance and and IT equipment abandons mechanical cooling elements such as fans and air efficiency from a shortened power supply path and uninterrupted DC, has been
efficiency. We developed the proprietary Yitian 710 chip and the M series of Panjiu conditioners, enabling an average annual PUE of less than 1.09 and energy savings fully deployed in our new self-built data centers. As of March 31, 2023, 366 sets have
servers, which have enhanced the overall cost-effectiveness of cloud computing in of 36% compared to the industry average. The real-time precise temperature been applied nationwide in China, with a capacity of over 800 MW. In July 2022, the
such core scenarios as database, data intelligence, video codec, and web server by control across all scenarios enabled by the liquid cooling technology unleashes the Panama Power Industry Standard (YD/T 4006-2022), DC Uninterruptible Power Supply
over 30%, while reducing the energy consumption per terabyte of data by 14%. The computing potential of chips to better serve the demand for higher-performance System with 10kV AC Input for Information Communication, was officially released and
cloud-native service of AURORA heterogeneous computing platform enables cross- computing in the future. implemented and opened to the world at large.
location and cross-chip operation, and improves computing energy utilization and
energy efficiency by 30%.

Energy-saving servers
Our dominant server architecture is designed based on the principles of modularity
and standardization to achieve flexible configuration, high density, and high
compatibility. Compared with traditional architectures, it improves system cooling by
10% while reducing energy consumption by more than 30%. Meanwhile, it supplies
power as per actual server loads, allowing power sources to keep working at the
optimal efficiency, which in turn lowers energy consumption and emissions.

Digital resource management platform


Our dominant digital resource management platform, Faraday, efficiently manages
resources used in data centers around the world, providing core functions such as
digital inspection of GHG emissions, energy management, and planning for carbon
neutrality. In FY2023, we consolidated the integrated management of water, electricity,
and diesel into the Faraday platform, enabling full coverage of on-site Operations and
Maintenance (O&M) data. With this, we are able to provide our clients with accurate
GHG emission bills for our cloud products and services.

Liquid-cooling server technology Panama power solution


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Low-carbon model: Alibaba Cloud’s self-built


data center in Zhangbei
Since its establishment in 2016, Alibaba Cloud Zhangbei Data Center has contributed to local high-quality Energy transition
sustainable development. Zhangbei Data Center has joined the four-party wind energy trading scheme
in Zhangjiakou, Hebei Province since 2018, and was among the first to
participate in China’s green energy market, sourcing a total of 540 million
kWh of clean energy in FY2023, a 94.2% year-over-year increase.

To facilitate smart energy


conservation and efficiency
improvement
Zhangbei Data Center has continued to implement an efficient energy-
saving strategy and fully utilized advanced energy-saving technology, with
its PUE decreasing to 1.19 as of March 31, 2023.

To facilitate waste heat recovery


and water conservation &
purification
Zhangbei Data Center recovered waste heat from its servers to supply heat
to the production and living areas in parks, as well as to empower green
agriculture, with a cumulative supply of 15,250 GJ in FY2023. Zhangbei also
recycles and purifies its wastewater for reuse, having cumulatively treated
12,482 tons of wastewater in FY2023, of which 6,234 tons were reused.
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Digital and intelligent circular logistics Order

Logistics is a vital driver for social and economic


We have started intelligent optimization of three
operations, but also a key challenge for global emission
typical measures, such as multi-order consolidation,
reduction, especially for emerging and developing
replenishment of perishable foods, and reducing reverse
economies. Through long-term efforts and capacity
logistics. In the order fulfillment process represented by
building, we aspire to become a builder and leader in
direct retail sale, these measures effectively decreased
digital and intelligent circular logistics. Together with our
19,080.9 MtCO2e of emissions in FY2023.
consumers and suppliers, we are exploring five major
links in the logistics chain - order, packaging, transport,
Multi-order consolidation: Multiple product orders with
warehousing, and recycling - to promote planned
the same address and placed at similar times will be
emission reductions and system transformation in
merged in the direct retail backend to reduce the overall
logistics through digital optimization, energy transition,
transportation volume, thereby decreasing unnecessary
and packaging improvement. According to auditing, by
emissions during the packaging and transportation
deploying solar panels on rooftops and sourcing clean
processes.
energy, Cainiao reduced emissions by a total of 21,003.2
MtCO2e. By intelligent optimization of the ordering and
Replenishment of perishable foods: The conventional
transportation processes, Alibaba's digital supply chain
mode relies on manual judgment to decide replenishment.
team has helped reduce emissions throughout the value
But we have upgraded this judgment process to effectively
chain by 28,771.7 MtCO2e.
reduce losses and waste of perishable foods by using
intelligent algorithms, thereby decreasing unnecessary
emissions.
Packaging
Reducing reverse logistics: We adopt intelligent
algorithms to identify and locate orders that are more
likely to be cancelled, and methods are taken to retain We continuously explore the various aspects of packaging
them in the direct retail backend for a short period to reduction, packaging optimization and packaging
prevent them from entering the actual order fulfillment recycling, and inspire the value chain and platform
process quickly, thereby decreasing unnecessary ecosystem partners to work towards the same goal.
emissions in subsequent warehouse operations and
We have developed simple packaging solutions tailored
reverse logistics.
to specific industries, continuously increased the use
of original boxes during shipment, and used reusable
delivery bins in both warehouses and transport.

For more details:


Please refer to Chapter 1 Minimizing packaging materials P55

Cainiao recycled boxes


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Transport reasonable matching relations between products and convenient charging/battery swap stations on their mobile Warehousing
warehouses in terms of industries and categories, deploy phones.
We achieve decarbonization in transport through two products in warehouses closer to consumers, and put We continue to drive energy transition in warehousing,
aspects: intelligent optimization and energy transition, with highly correlated products in the same warehouse, so as to For short-haul express delivery, we are vigorously promoting
primarily via deploying distributed solar panels on the
the former focusing on optimizing transport routes and the shorten the shipping distance and decrease unnecessary electrification. As of March 31, 2023, electric vehicles for urban
rooftops of logistic warehouses. As of March 31, 2023, we
latter on energy transition in ground and air transportation. emissions during transportation. distribution accounted for 33% of total vehicles used by Cainiao
have installed 30.0 MW of distributed solar panels on these
Direct Delivery (Cainiao Express)6. For the last-mile logistics, we
roofs, up from 24.9 MW on March 31, 2022, or a year-over-
We have optimized all links of the supply chain of our Inventory dispatch: In traditional mode, suppliers used are promoting the intelligent electric unmanned delivery vehicle
year increase of 20.5%. Combined with sourcing clean
direct retail segment through intelligent algorithms, mainly to transport products directly to fulfillment warehouses via Xiaomanlv ("little donkey"), which has completed delivery for
energy, we achieved emission reduction of 21,003.2 MtCO2e
involving warehouse site selection, product warehouse small lorries. We have optimized the routes with intelligent more than 29 million orders as of March 31, 2023. This marked
in FY2023.
deployment, inventory dispatch and so on, effectively algorithms to transport products to distribution warehouse a new record for unmanned last-mile delivery in China. In the
decreasing 9,690.9 MtCO2e of unnecessary emissions in using small lorries first, and then to fulfillment warehouses meantime, we encourage couriers of logistic service providers to
FY2023. using larger ones, which makes the product transportation run electric. Recycling
much more efficient and decreases unnecessary emissions
Warehouse site selection: We deploy micro fulfillment during transport. For long-haul and cross-border deliveries, we endeavor Cainiao Posts continues to encourage the recycling of
warehouses with suitable volumes at locations closer to to explore innovative solutions. In FY2023 we completed the express packages. We encourage consumers to leave
consumers, so as to maximize trunk logistics transportation We have developed low-carbon transportation innovations maiden international flight of a commercial cargo flight using their cartons at Cainiao Posts when they pick up their
of higher efficiency, thereby reducing the relatively for different transportation scenarios ranging from near to sustainable aviation fuels, the first of its kind from the Chinese parcels for the secondary use. For those who want
inefficient last-mile transportation distance and ultimately far distances. Mainland: In December 2022, a 12-hour-long flight from to ship parcels, we encourage them to choose the
decreasing emissions per unit of logistics distance. Hangzhou Airport to Belgium was flown using sustainable “sending in recycled boxes” option to encourage their
To facilitate the use of electric vehicles during the offline aviation fuels for Cainiao deliveries. Sustainable aviation engagement in the circular economy.
Product warehouse deployment: Traditional fulfillment fulfillment of online orders, we have built a battery swap fuels can reduce life-cycle emissions by over 50% compared
is often sent in China from one fixed warehouse. By virtue platform and introduced excellent charging/battery swap to traditional fuels.
of intelligent algorithms, we can identify and locate more service providers, so that riders can find the most

Cainiao new energy lorry Xiaomanlv used in campus Rooftop photovoltaics of Cainiao Wuhan Jiangxia Campus

6 In June 2023, Cainiao upgraded Cainiao Direct Delivery and unveiled an express delivery service called Cainiao Express.
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Sustainable retail stores

As the operator of multiple brick-and-mortar


retailers across China, we are fully committed to
complying with relevant environmental laws and
regulations in the places where we operate. We
are transforming the way we use resources in each
link throughout our own operations and across
the value chain, while continuously enhancing our
digital energy management. We aim to become
the core offline carrier of low-carbon consumption.
According to auditing, in FY2023, by deploying solar
panels on rooftops and engaging in clean energy
sourcing, Sun Art Retail reduced emissions by a total
of 59,880.0 MtCO2e. By actively engaging in clean
energy sourcing, Intime Department Store reduced
emissions by 211,701.0 MtCO2e. Intime Department
Hangzhou Wulin Store has taken the lead in
achieving carbon neutrality.

59,880.0 MtCO2e
Sun Art emission reduction from clean
energy transition

211,701.0 MtCO2e
Intime emission reduction from clean
energy transition
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Sun Art Retail

Enhancing digital energy management: Resource usage transformation: Investing in low-carbon transport: Medium and increase of 20.4%. Meanwhile, Sun Art Retail sourced
In FY2023, we upgraded our digital energy We are actively exploring ways to use and recycle heavy cargo transport represents a difficult-to- 83,642 MWH of clean energy, reduced 50,748.8
management platform and added a DingTalk alarm resources and improve efficiency throughout our decarbonize activity. We are experimenting with MtCO2e. Both of the emission reduction ups to
function for refrigeration equipment, enabling operations, including switching to environment- new-energy trucks for warehouse-to-store deliveries, 59,880.0 MtCO2e.
regional monitoring centers to keep real-time friendly refrigerants, investing in low-carbon with a pilot underway in metropolitan Suzhou city
monitoring over abnormal conditions in store transport, deploying distributed solar panels, and surrounding areas, covering the delivery routes Adopting recycled packaging: We work on
refrigeration systems, identify abnormal energy sourcing clean energy, and adopting packaging of RT-Mart stores. We plan to further expand it to packaging reduction, packaging replacement, and
consumption, and conduct remote verification and recycling. other regions based on results. packaging recycling to achieve emission reduction
initiate remote checking or on-site checking as in the value chain. We have introduced reusable
needed. Switching to environment-friendly refrigerants: We Energy Transition: We continue to deploy distributed delivery bins for product distribution, adopted
continue to evaluate and switch to environment- solar panels on store rooftops and parking lots and biodegradable shopping bags in multiple scenarios,
For more details: friendly refrigerants, with 59 stores having upgraded sourcing clean energy. Five new stores installed recycled cartons from more standard products, and
Please refer to Chapter 1 Minimizing packaging materials P54
to refrigerants (R448A models) with lower Global distributed solar panels, achieving a reduction of encourage suppliers to increase the recycling and
Warming Potential (GWP) as of March 31, 2023. 9,131.1 MtCO2e in FY2023, with a year-over-year reuse of cartons.

Rooftop photovoltaics of Sun Art


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Intime Department Stores Freshippo

Resource usage transformation: Intime is actively achieving carbon reduction of 211,701.0 MtCO2e. Upgrading digital energy management: We have the cold chain, lighting, and exhaust fume fans in
pursuing green transformation via investing in Stores in Zhejiang Province, eligible for independent gradually optimized digital energy management FY2023.
energy-saving renovations, sourcing clean energy, energy sourcing, have been transitioning to clean in stores so that we can monitor the operational
and recycling packaging, with 37 Intime department energy consumption. Coupled with a small amount status of stoves with infrared sensors, and enable Cold chain optimization: We consolidated low-
stores having been recognized as green shopping of carbon removal and offsets, Intime's Hangzhou automatic vent control for cooking fumes. We stock cold warehouses and reduced refrigeration
malls by the Ministry of Commerce as of March 31, Wulin Department Store has taken the lead in have also widely enabled monthly reporting of loads by capping the cold warehouses' horizontal
2023. achieving carbon neutrality. abnormalities and remote inspection with smart freezers to save energy and reduce emissions.
meters to facilitate intelligent identification of
Energy-saving renovations: 12 more stores Packaging recycling: Efforts are made in using energy management loopholes in night-time air Packaging recycling: We work on packaging
completed energy-saving renovations in multiple environment-friendly packaging materials and conditioning, lighting, and the cold chain to achieve reduction, packaging replacement, and packaging
areas from management and process to technical optimizing packaging to achieve emission reduction refined energy conservation and management. recycling to achieve carbon reduction in the
applications in FY2023, with each saving roughly throughout the value chain. We replace plastic value chain. Specifically, we reduce packages for
5.88 million kWh of electricity annually after the materials with biodegradable materials for making Transforming resource usage: We are actively delivery orders and private-label products, actively
transformation. express bags and use more environment-friendly exploring energy-saving renovations, cold chain participate in the development of standards for
glue-free cartons. optimization, and packaging recycling. degradable packaging, use reusable delivery bins
Sourcing clean energy: We continue to invest in warehouses and stores, and recycle and reuse
heavily in clean energy sourcing and have been an For more details: Energy-saving renovation: We completed the distribution baskets in processing centers.
Please refer to Chapter 1 Minimizing packaging materials P54
industry leader in energy transformation. In FY2023, overall energy-saving renovation of five Shanghai
Intime consumed 300 million kWh of clean energy, stores, covering a wide range of areas such as For more details:
Please refer to Chapter 1 Minimizing packaging materials P54

Creating a green and low-carbon place


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Decarbonizing the value chain and promote consuming clean energy and trading services, which are difficult to decarbonize. Ele.me has built a battery swap platform and introduced
RECs. With these optimizations, a reduction of 0.363 In FY2023, we initiated our exploration of low-carbon excellent charging/battery swap service providers, so
million MtCO2e was achieved in FY2023. cross-border air transportation and completed the that delivery riders can find the most convenient stations
Suppliers are our most vital partners in effectively
maiden international flight of a commercial cargo flight through a mobile app, promoting the widespread use
reducing GHG emissions and other environmental
To reduce downstream emissions from external rental using sustainable aviation fuels, the first-of-its-kind of clean energy vehicles. Cainiao encourages couriers of
footprints. Our goal of halving the carbon intensity of the
properties, we launched clean energy procurement for from the Chinese Mainland. In December 2022, a cargo transport service providers to replace gasoline vehicles
value chain (Scope 3) by 2030 can only be accomplished
them in Zhejiang Province. Combined with deploying plane flew a 12-hour-long flight from Hangzhou Airport with electric ones. In our direct retail business, we have
with the full consensus of and joint actions with the
distributed solar panels, we consumed over 4.477 to Belgium using sustainable aviation fuels for Cainiao optimized warehouse site selection, product warehouse
majority of our suppliers. In this regard, we ranked the
million kWh of clean energy in FY2023, resulting in a deliveries. deployment, and truck dispatch with intelligent
GHG emitters throughout the value chain in descending
reduction of 3,149.4 MtCO2e. algorithms, as well as optimizing order fulfillment,
order (including energy consumption in the value chain,
cross-border freight, ground transportation, procurement Emission reductions from land including multi-order consolidation, replenishment
of packaging materials and employee travel), and Emission reductions from transportation of perishable foods, and reducing reverse logistics,
mapped out specific tailored emission reduction cross-border freight to shorten the overall distance for product fulfillment
Emissions from value chain ground transportation are and vastly improve the transport efficiency, reducing
measures, in order to engage our value chain in joint
The logistics-related segments, such as air and sea mainly generated during offline fulfillment of online emissions by 28,771.7 MtCO2e in FY2023.
action. Through our efforts, we achieved 0.40 million
MtCO2e Scope 3 emission reduction, combining with our transportation services to send parcels overseas, are the orders, short-haul express deliveries, and outsourced
carbon removal and offset projects, resulting in a carbon main emitters in the value chain. As the cross-border ground transportation services. In FY2023, we reduced
intensity of 8.7 MtCO2e per million RMB throughout the freight business grows, its emissions will continue these emissions by advancing electrification and
value chain, a year-over-year decrease of 5.7%. to increase substantially, especially for air transport intelligent optimization of transportation routes.

Emission reductions from energy


consumption

The largest energy consumers along our value chain are


upstream leased data centers for cloud computing and
downstream properties rented. We worked to facilitate
their energy use management and energy transition in
FY2023.

To reduce emissions from upstream leased data centers,


we encourage these suppliers to step up their efforts
on decarbonization year by year. By improving our
monitoring, measurement and analysis of their energy
consumption and emissions, with an assessment
mechanism in place to periodically evaluate their low-
carbon performance. Meanwhile, by sharing standards
and technologies of our self-built data centers, we help
suppliers optimize the PUE of our leased data centers
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Emission reductions from packaging Emission reductions from business travels Carbon removal and offsets
materials
Network supplier partners need to face practical based on carbon removal and supplemented by
Our employees around the world generate emissions
Emissions from packaging materials in the value challenges in decarbonization in a period of carbon offsets; invested in high-quality carbon
from services they use during business travel. We
chain take place in multiple parts of our own time. Therefore, on the basis of direct emission removal projects related to afforestation and forest
focus on four major low-carbon business travel
operations and the platform ecosystem. We take reduction throughout the value chain, we actively management projects, as well as high-quality
behaviors, namely encouraging rail instead of air
the negative impact of these packaging materials take carbon removal and other initiatives, and will carbon offset projects in animal husbandry to avoid
transport, carpooling, corporate buses, and public
on the environment very seriously, with a number continue to follow the principle of "direct carbon methane production and so on. This portfolio of
transit, with credit rewards provided in our travel
of actions taken in FY2023, including packaging reduction takes precedence over carbon removal, projects that primarily comply with the international
service booking system so as to motivate employees
reduction, material replacement, packaging and carbon removal takes precedence over offsets" VCS standards help us decrease the emissions of the
toward low-carbon travels. In FY2023, over 70,000
optimization, and packaging recycling. that we outlined in 2021. In FY2023, we established value chain by 115,394.0 MtCO2e.
employees engaged in over 1.18 million low-carbon
screening criteria for carbon removal-related
business travel behaviors, reducing emissions by
For more details: projects and came up with a combination scheme
Please refer to Chapter 1 Minimizing packaging materials P54 4,918.5 MtCO2e.

One of our projects in FY2023 carbon removal solution: Afforestation project in Sanchazi, Baishan City, Jilin Province.
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Engaging and enabling decarbonization through our


platform ecosystem
The key to cutting carbon pollution while promoting emission reduction. It has been an iterative process
economic growth is to inspire and promote of exploration and progress. In FY2023, on the basis
innovation, and design measurable incentives and of releasing the Scope 3 + Emission Reduction: A
mechanisms, to collaboratively engage the widest New Methodology for Corporate Climate Actions
range of stakeholders to move society towards Beyond Value Chain, we reduced a total of 22.907
green, low-carbon, and circular development. million MtCO2e of emissions following our published
Scope 3+ methodology. We moved on to map out the
We firmly believe that the digital platform is the preliminary pathway for further low-carbon efforts,
rich soil for building a digital and circular business laying the foundation for the ultimate achievement
ecosystem. Our goal is, firstly, to promote and of our Scope 3+ goals.
enable enterprises, especially SMEs, to green
and low-carbon production while maintaining Below is a detailed introduction to the measurement
growth, and secondly, to promote the broadest standards for Scope 3+ emission reductions, as well
possible consumer shift towards more sustainable as the achievements of our efforts in engaging and
consumption. Moreover, we work to shape a enabling decarbonization among enterprises and
positive feedback loop between consumption and consumers.
production, to better motivate partners to run green.
Roadmap and measurement infrastructure
With this in mind, we pioneered the concept of for Scope 3+ emission reduction
“Scope 3+” which strives to measure the emissions
generated in our ecosystem beyond Scopes 1, 2, Key scenarios and emission reduction
and 3. As part of this effort, we have set a platform progress of Scope 3+
decarbonization target of “facilitating 1.5 gigatons
of GHG emission reduction over 15 years across the
ecosystem” in the Alibaba Group Carbon Neutrality
Action Report in December 2021. We view this as
a broader responsibility in decarbonization that a
platform operator should take on. 22.907 million MtCO2e 187 million 1.91 million
Low-carbon Friendly
Scope 3+ emissions reduction Number of users practice emission reduction
products
via the Carbon88 ledger platform
As there has been no established standard for
"Scope 3+", we have had to establish transparent
and measurable scientific standards as we promote
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Roadmap and measurement infrastructure for Scope 3+ emission reduction Roadmap for Scope 3+ Systematic standards for emission
emission reduction reduction
FY2023 marks the groundbreaking year for the 15- major emission reduction categories, engaging and In FY2023, guided by the two major emission Climate Actions Beyond the Value Chain, we joined
year target of Scope 3+. Together with authoritative enabling decarbonization, through the platform reduction categories - “engaged carbon abatement” with China Association for Standardization and
institutions, we first published the "Scope 3+ Emission ecosystem and built corresponding infrastructure and “enabled carbon abatement”, we drew up eight China Environmental United Certification Center and
Reduction: A New Methodology for Corporate Climate based on this methodology. specific action routes for emission reduction. applied for the group standard Corporate Scope
Actions Beyond the Value Chain", specifying the two 3+ Emission Reduction Accounting and Reporting
For engaged carbon abatement, we actively Principles, a key step from the conceptualization of
leverage the platform mechanism to drive and Scope 3+ to standard establishment.
motivate individuals and enterprises to actively
reduce emissions at both behavioral and product We jointly developed corresponding measurement
levels to establish a low-carbon lifestyle and methodologies for 102 scenarios around the above
consumption arena. We focus on four key areas: eight routes together with professional third parties.
low-carbon travel, low-carbon dining, recycling and We also gradually and systematically developed
reuse, and low-carbon products. These behaviors these methodologies of the scenario into official
contribute to emission abatement via the principle standards8. As of March 31, 2023, we have led or
of "Reduce, Replace, Recycle", and are amplified by participated in 28 national and group standard
proactive measures taken by the platform. projects in China.

For enabled carbon abatement, we continue to Recently, we have teamed up with the World Business
tap the potential of digital technologies to reduce Council for Sustainable Development (WBCSD),
emissions and increase efficiency so as to empower the World Resources Institute (WRI), and the World
corporations and industries to go green. Currently, Economic Forum (WEF), among other international
our efforts cover four major areas: low-carbon cloud organizations, to discuss the promotion of Scope 3+
services, low-carbon office services, low-carbon emission reduction as a standard widely recognized
logistic solutions for corporations, and low-carbon and practiced worldwide.
production solutions. Compared with the social
baseline7, these solutions and products have notable
low-carbon attributes that directly fortify the client's
ability to reduce emissions.

Group standards

7 Social baseline is the average emission of the society and industry.


8 Official standards include group standards, local standards, industry standards and national standards.
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From standard innovation Low-carbon Friendly Products Program:


to business innovation In October 2022, we launched Low-carbon Friendly
Contributing to the development of low-carbon products through the establishment of Low-
Products Program. By establishing a certification
We combine innovative business practices with carbon Friendly Products Program and product decarbonization standards
system and a measurement standard system for
systematic standards of emission reduction, in product emission reduction and applying it to the Jointly with authoritative independent institutions such as China Quality Certification Centre and China National Institute of
order to promote the extensive application of these Taobao and Tmall platforms, we have continuously
Standardization, we contribute to the development of low-carbon products through the estbalishment of a certification
standards in more scenarios and communities via system and a decarbonization standard system. Focusing on the product lifecycle, we established"Independent
enriched the supply of Low-carbon Friendly Certification System"and launched Alibaba Low-carbon Friendly Products Program, covering key process and
our platform mechanism and stakeholder ecosystem.
products. By March 31, 2023, there are a total of 1.91 measurements in sub-product decarbonization, such as carbon neutral products, low-carbon raw materials, low-carbon
million Low-carbon Friendly products of 41 first- packaging, low-carbon logistics, energy conservation and energy-saving use. Currently, 29 decarbonization related
"Carbon88", a carbon ledger platform for certifications and labels are adopted. Meanwhile, according to the decarbonization measurement standards for different
class categories9 from 409 brands and we are driving
consumers: product categories, we have developed group standards such as General Technical Requirements for Evaluating CO2
more and more merchants to engage in low-carbon
Taking advantage of the rich business scenarios in Emission Reductions of Energy-efficient End-use Products and Technical Requirements for Evaluating Emission Reductions
practices throughout the lifecycle. of Products Packaging.
Alibaba's ecosystem, our Carbon88 ledger platform
as Alibaba’s carbon ledger platform unveils a
Active participation in government-led innovative
decarbonization lifestyle for consumers across
model of voluntary emission reduction:
various scenarios, from catering, travel, working, and
In accordance with the Guangdong Carbon Inclusive
shopping, to recycling. Based on the progressing
Trading Management Measures and the Guangdong
decarbonization measurement standard, we
Carbon Reduction Accounting Rules for Energy-
measure the decarbonization actions of consumers
saving Air Conditioners, we have pooled and
in Alibaba's ecosystem platforms. In addition,
declared voluntary reductions for energy-saving air
Carbon88 ledger platform is driven by the value of
conditioners. Amap actively engages the public in
protecting the earth, with an aim to encourage users
low-carbon travel by participating in the construction
to develop low-carbon habits through incentives and
of Beijing Transportation Green Travel Integration
low-carbon themed activities. In FY2023, a total of
Service Platform (Beijing MaaS10 Platform). In June
187 million users participated in emission reduction
2023, Amap's "Green Travel Carbon Inclusion
actions through the Carbon88 ledger platform.
Project" was selected by the Ministry of Ecology and
Environment and the Office of National Spiritual
Civilization as one of the top 10 public participation
cases in the "Beautiful China, I am a practicer" 2023
Action Plan to raise public awareness of ecological
civilization.

9 First-class category is the primary classification of products on Taobao and Tmall platforms.
10 MaaS,Mobility as a Service.
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Key scenarios and emission reduction


progress of Scope 3+
We are promoting the implementation of our Scope
3+ commitments, centering on “engaged carbon
abatement” and “enabled carbon abatement”
from both the user side and the corporate side in
our specific business operations. On the user side,
we drive consumers to lead low-carbon lifestyles
through the platform mechanism, which in turn
boosts low-carbon production among suppliers;
on the corporate side, we empower enterprises
to improve their efficiency in production and
distribution via digital capabilities, thus enabling the
synergistic development of green industrial chains.
Meanwhile, on the basis of measurable low-carbon
actions, we are dedicated to establishing sustainable
market mechanisms to continuously penetrate into
more consumers and businesses, encouraging more
frequent low-carbon actions.
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Leading consumers towards green low- The "Green Travel" and carbon points through Carbon88 ledger maternal products and children's toys. In FY2023,
carbon lifestyles by leveraging platform Amap provides low-carbon travel options, such as platform, which can be exchanged for various the reduction from the reuse of idle items reached
mechanism "walking, cycling, bus, and subway" for users. As of benefits. As of March 31, 2023, the number of 3.142 million MtCO2e. We encourage consumers to
March 31, 2023, it has covered 16 cities, including "cutlery-free" orders on the Ele.me platform has leave their cartons at Cainiao Posts when they pick
We mobilize the large collective power of many users Beijing, Shanghai, Guangzhou, Shenzhen, Wuhan, exceeded 1.4 billion. up their parcels for the secondary use. For those who
to protect the planet through small changes and Chengdu, and Chongqing, driving more than 30 want to send parcels, we encourage them to choose
incentives, and to lead green lifestyles through a million users to practice low-carbon travel. In FY2023, Reuse of idle items the “sending in used boxes” option to facilitate their
consumer carbon ledger scheme that covers multiple emissions reduced by low-carbon travel reached We advocate for consumers to use idle items without engagement in the circular economy. In FY2023,
scenarios and goals. 0.215 million MtCO2e. compromising the quality of life. On the re-commerce according to digital record from Cainiao Posts, the
platform Idle Fish, we have measured emission number of recycled cardboard boxes recorded in
Low-carbon catering
reduction and provided consumer incentives for a digital form reached 23.82 million. To encourage
The Ele.me provides a "cutlery-free" option to reduce
22 categories of idle items and six categories of consumer participation, Cainiao has given them a
the consumption of single-use items and emissions.
recycled items, including cell phones and digital total of 2 million eggs, tissues, rice, and so on as free
Every time when consumers choose "cutlery-free",
services, beauty and personal care product, and incentives.
they can obtain corresponding emission reduction

Green Travel Low-carbon catering Reuse of idle items


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Low-carbon Friendly products


We add carbon reduction logos to the pages of Low-carbon Friendly products to clearly guide consumers to
buy such products. As of March 31, 2023, more than 100 million users have consumed Low-carbon Friendly
products on Taobao platform, covering categories of home appliances, FMCG (Fast-Moving Consumer From "Decarbonization-friendly Actions" to "88 Decarbonization Day"
Good), foods, and more. In FY2023, the emission reduction from the consumption of Low-carbon Friendly Utilizing the platform advantages, we accelerate green, In November 2022, Alibaba further launched the "88
products reached 0.896 million MtCO2e. Besides, through the Carbon88 ledger platform, we offer consumers a low-carbon and circulate products and business models Decarbonization Day", covering brand building, consumer
convenient experience to access a wide variety of Low-carbon Friendly products supply and benefits wherever through facilitating consumers to choose low-carbon education and low-carbon consumption. Together with
possible. lifestyle and low-carbon consumption. brand groups, we are building low-carbon consumption
awareness and creating new exclusive scenarios for low-
In July 2022, Alibaba launched the "Decarbonization- carbon consumption. At present, Alibaba has carried out
friendly Actions". As of March 31, 2023, we have worked with "88 Decarbonization Day" with Shiseido and Yili respectively.
23 brand companies in China and abroad, covering FMCG,
household appliances, and food to promote this program.

Low-carbon Friendly products

Emission reduction in life


The key to making emission reduction sustainable is through users' mindset building and conceptual change.
Thus, we continue to explore and identify the emission reduction scenarios and methods in daily life, making
it easy for consumers to adopt low-carbon and environment-friendly practices. Through the Carbon88 ledger
platform, we advocate and incentivize users to start small from their surroundings to develop low-carbon
habits such as turning off lights, bringing their own cups, and reducing food waste. Through small changes
and incentives, we create significant value in protecting the Earth. 88 Decarbonization Day
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Enabling enterprises in achieving carbon neutrallity targets with digital capabilities

The green transformation of SMEs and the industry as a whole relies not only on breakthroughs and applications of low-carbon
technologies, but also requires significant breakthroughs and applications of efficiency-enhancing management technologies.
Research shows that digital technologies possess distinct multiplier effects in reducing emissions. While digitalization systems
themselves might increase emissions by 2%, this will be more than offset by an expected 20% in emissions reduction from using
digitalization, thereby providing a scientific basis and motivation for us to deliver targeted digital low-carbon applications.

Low-carbon cloud services Low-carbon office services


According to the Carbon Trust’s report in 2022, Alibaba By enabling online collaboration for employees, DingTalk has significantly
Cloud’s Carbon Benefits, users in China can avoid reduced the need for many offline meetings, thereby reducing emissions.
85.5% of emissions by switching to Alibaba Cloud from DingTalk has launched an inclusive product DingTalk Emissions Reduction for
locally deployed data centers and servers. Our cloud corporate employees, which visualizes and quantifies their low-carbon office
computing has empowered clients to reduce 6.863 behaviors with “low-carbon energy” points. In FY2023, DingTalk digital office
million MtCO2e of emissions. services empowered clients to reduce emissions by 1,175.8 MtCO2e.

Low-carbon logistic solutions Low-carbon production solutions


Cainiao takes advantage of its digital technologies and An energy consumption and carbon management platform, Energy Expert,
logistics platform to provide full-link digital recycling facilitates enterprises, especially export-oriented SMEs, to reduce emissions
capabilities for its ecosystem partners. In July 2022, at the production end and build green competitiveness. Compared with
Yili and Cainiao signed a green strategic cooperation traditional carbon footprint inspection tools, Energy Expert can save about 75%
agreement to jointly establish a green recycling chain of time and 90% of cost. As of March 31, 2023, Energy Expert has served 2,580
for used packaging based on the full-chain emissions companies worldwide.
reduction digital system, which covers the entire process
from consumer engagement, transfer, recycling, and Another example in low-carbon solution is our partnership in the power
reproduction and predictive modeling. In September industry. In February 2023, we signed a Memorandum of Understanding on
2022, Cainiao teamed up with Nike to conduct door-to- AI-enabled power dispatching with the China Southern Power Grid, to jointly
door worn shoe recycling and achieved on-site recycling promote the R&D and application of cloud computing, data intelligence and AI
at 30 campus stations in China. Meanwhile, with the technology in power dispatching, towards the goal of safe, reliable and green
support of the postal administrations of Zhejiang, Anhui, development. In March 2023, Alibaba advanced our comprehensive strategic
Hunan, and Guangxi provinces, Cainiao has carried out partnership with the State Power Investment Corporation Limited, joining our
a pilot digital carbon asset management system for the complementary capabilities to give the electricity users like Alibaba access
postal express industry to promote scientific emissions to more and cleaner power (“New Energy+”) and to help the power industry
reduction in the industry. The first pilot system has been become smarter and more efficient (“Green Digital Intelligence+”).
launched in Anhui.
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Conserving and restoring nature


Besides the global climate crisis, we are confronted with a series of
interlinked environmental crises, from water scarcity and degradation,
marine and soil pollution resulting from the proliferation of plastics and
other solid wastes, to biodiversity loss and ecological degradation. The
natural environment, which humanity relies upon, is currently under
significant threat. To address these pressing issues, we work closely with
environmental organizations, the public, and other stakeholders. By
leveraging technology and fostering innovative business models, we aim to
collectively address and overcome these challenges.
Minimizing Conserving and purifying Reducing and Ecosystem
packaging materials water resources recycling waste protection

Conserving and restoring nature


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Minimizing packaging materials Reducing packaging materials in our operations and across our value chain

According to the United Nations Environment We have implemented measures across the mentioned four dimensions within our retail spaces, including Sun Art Retail,
Program, under the transition to a sustainable and Intime, and Freshippo, in our commitment to reduce the use of packaging materials, with a specific focus on plastics.
low-carbon circular economy, it is anticipated that
the volume of plastic entering the oceans will be
reduced by more than 80% by 2040, alongside a 55%
decrease in the production of virgin plastic11. Alibaba
is actively engaged in resource recycling efforts and
employs various approaches to minimize packaging Sun Art Retail Intime Department Store Freshippo
materials. First, we focus on reducing packaging at
its source. Second, in scenarios when plastics usage Packaging Reduction Packaging Reduction Packaging Reduction
is necessary, we actively invest in the research and To minimize the use of packaging materials from the source, We have optimized the design of mailing cartons and To avoid excessive packaging of our self-owned products, we
application of environment-friendly materials, i.e., we have introduced recyclable boxes, baskets, and pallets in successfully upgraded from traditional zipper boxes to have implemented an internal audit mechanism. In FY2023,
multiple processes such as distribution, sub-package, and more eco-friendly friction-adhesive boxes. These friction- we achieved weight reduction of approximately 5-13% per
replacing traditional packaging material with more
transportation. For food-related products, we have adopted adhesive boxes utilize mortise and tenon fitting technology box in some major PET packaging boxes.
sustainable alternatives. Third, we strive to enhance food-grade folding turnover boxes and insulation boxes. We at the seal, not only ensuring the boxes are suitable for
the efficiency of packaging material utilization reduced the thickness of wrapping film while maintaining normal transportation, but also reduce paper usage by Packaging Material Replacement
through packaging optimization. Last, we collect its effectiveness, therefore reduce the overall amount of approximately 10%. In FY2023, our efforts in packaging In FY2023, Freshippo took a pioneering role as the first and
and recycle packaging materials after they have packaging materials used. optimization led to a decrease in paper material usage by only supermarket company participating in the development
around 316 tons and a reduction in the use of glue by about of national standards for the identification of biodegradable
served their purpose. These measures are not only
Packaging Material Replacement 60%. products (GB/T 41010) and home composting specifications
implemented within our own operations, but also We are actively replacing non-biodegradable shopping bags (GB/T 40553); Freshippo gradually replaced disposable
in our collaboration with our partners throughout with biodegradable alternatives. Packaging Material Replacement plastic tableware with paper and biodegradable tableware
the value chain and platform ecosystem to drive We have introduced fully biodegradable "green mailing in stores in China to reduce the use of single-use plastic
collective action and innovation. Packaging Recycling bags" made from environment-friendly materials in all of tableware. Meanwhile, Freshippo actively replaced single-
We recycle cartons from the sub-package process of standard our stores in China. Additionally, we have replaced plastic use items with recyclable folding baskets, and insulation
products, and we encourage suppliers to enhance carton materials with paper or biodegradable alternatives for boxes in our warehouses and stores.
Reducing packaging materials in our recycling and reuse practices. In the FY2023, Sun Art Retail the fillers inside delivery parcels. This transition had been
operations and across our value chain and Mengniu Diary initiated a pilot program involving reusing implemented across all Intime department stores during Packaging Recycling
turnover boxes. After receiving Mengniu Diary's products, FY2023, resulting in an annual reduction of approximately At Freshippo, we utilize waste plastic turnover baskets as raw
Facilitating the reduction of packaging stores send back the turnover boxes to the warehouse for 31.4 tons of plastic packaging materials in total. materials in our processing centers. Through a reprocessing
freshly produced food through returning logistics trucks. process, we transform these used baskets into new ones for
material usage across our ecosystem
Mengniu Diary then collects these boxes for reuse. internal recycling.

11 Data source: United Nations Environment Programme: https://www.unep.org/zh-hans/xinwenyuziyuan/xinwengao-35.


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Facilitating the reduction of


packaging material usage across
our ecosystem Cainiao actively drives the industry and Lazada releases the Sustainable
consumers to participate in reducing packaging Packaging Handbook
In addition to our internal efforts, we are actively materials
In Vietnam, Lazada is committed to actively collaborating their negative environmental impact. The Handbook also
engaging the ecosystem surrounding our Packaging reduction with platform retailers to reduce plastic waste and promote provides technical support to the Ministry of Industry and
logistics, international e-commerce businesses We develop simple packaging schemes according to industry environment-friendly packaging practices. In February 2023, Trade of Vietnam when establishing the Code of Conduct for
and so on to drive actions and innovations characteristics to reduce the use of cartons from the source; Lazada took a significant step by releasing the Sustainable Responsible Business Practices in E-Commerce.
we actively promote shipments with original boxes and used Packaging Handbook. This comprehensive resource provides
aimed at reducing plastic and minimizing
packages. In FY2023, the consumption of packaging materials platform retailers with practical tips and guidelines to minimize
packaging material usage. This involves was reduced by 0.184 million tons.
encouraging participation and collaboration
from platform consumers and retailers alike. Packaging Optimization
We work on packaging planning and algorithm optimization for
different industries, warehouses, and product categories, and
continuously improve the full box rate and reduce the overall
use of cartons.

Packaging circulation
We actively use reusable delivery bins instead of disposable
cartons in warehouse operation and transportation to reduce
the use of cartons. For example, in Tmall Supermarket, couriers
will use these reusable rigid-shelled bins and simple packaging
instead of single-use cartons.

Packaging recycling
We continuously invest energy, time, and resources in packaging
recycling at Cainiao Posts, and encourage consumers to leave
cartons at Cainiao Posts for secondary use when picking
up parcels, we also provide consumers with the "used box"
delivery option to encourage them to actively participate in the
circular economy. In FY2023, the number of cartons recycled in
Cainiao Posts recorded digitally reached 23.82 million.

Packaging recycling at Cainiao Post


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Conserving and purifying Water conservation in own operations


water resource We are dedicated to integrating the principles of within our self-built data center base in Zhangbei, water, such as in our Beijing campus, where the
resource recycling into our own operations, particularly resulting in the recycling of 6,234 tons of wastewater in reclaimed water covers 100% water usage across
Water is the essence of life, but its distribution is
in the management and utilization of water resources. FY2023. campus irrigation and toilet flushing. Moreover, we
highly uneven globally. The impacts of climate
Alibaba Cloud pursues low water usage. We tried to promote the adoption of "sponge city" designs, which
change often exacerbate water stress and
reduce water usage from the source by technological Furthermore, we leverage technology to continuously facilitates rainwater recycling within our campus. For
degradation of water quality. In China, the water
innovation. We developed a high-efficiency dry cooler, enhance water efficiency within Alibaba's campuses. existing campuses, we conduct reviews and implement
issue is particularly complex, with per capita water
which enables WUE (Water Use Efficiency) to drop below Our approach involves incorporating water conservation technical modifications to existing equipment. This
resources only amounting to one-fourth of the global
0.1 liters/kWh. In operations, we promoted digital water and recycling concepts into the design and layout of includes the recycling of wastewater from drinking
average12. Alibaba has a longstanding commitment
resource management, constructed a national platform new campuses. Starting in 2022, all new campuses fountains, controlling water flow in pantries, recycling
to addressing water issues, emphasizing the
for water use data management, and achieved adopted Tier 1 sanitary ware, enabling a 40% reduction landscape water and so on. These efforts were
prudent use of water resources within our own
visible, measurable, and analyzable WUE in FY2023. in water consumption compared to traditional ones. estimated to result in the recycling of over 33,000 tons of
operations and substantial investing in developing
Additionally, we have piloted intensified water recycling We are also increasing the utilization of reclaimed water in FY2023.
innovative technologies for efficient water utilization.
Furthermore, we maintain a steadfast focus and
continuous support on China's water challenges,
promote water security and ecological protection
in China by actively collaborating with a diverse
network of partners.

Water conservation in own operations

Water protection throughout our ecosystem

Water management

12 Data source: https://www.gov.cn/zhengce/202305/content_6876215.htm.


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Water protection throughout our


ecosystem
Qiandao Lake Project Phase II
We leverage a wide array of technology and In April 2022, Alibaba Foundation launched the second phase of the Qiandao Lake Water Fund project, a long-
philanthropic innovation to collaborate with wide term initiative supported by the Alibaba Foundation. This phase focused on establishing a demonstration base for
preventing non-point source pollution and soil erosion in key agricultural crop areas within the basin. Additionally,
stakeholders such as environmental protection
in February 2023, we initiated the "Weiping Xiaowudu Source Watershed Restoration" project. In FY2023, the project
organizations, governments, public, and other was awarded the model case of "Innovative Financial Mechanisms for Water Resources Protection by the Asian
stakeholders to support and participate in China’s Development Bank" and the "Ecological Civilization Education Base" in Hangzhou City.
water quality improvement and water ecosystem
protection in the long-term, and to explore innovative
River Watchman project team nominated for the "Green China People of the Year"
solutions.
Alibaba Foundation supports the development of the mini-app "Interesting River", which empowers river
Long committed to environmental governance watchmen to patrol rivers, identify problems, and solve issues. It has successfully established a network
comprising both official and volunteer river wardens, and the general public, fostering a systematic approach to
centered on water environment protection, Alibaba
public participation in river conservation. As of March 31, 2023, the "Interesting River" project had recruited 1,482
Foundation has launched a series of public welfare teams and launched 131,750 individuals to complete 715,951 effective river reviews. The River Watchman project
projects for water resource protection. team was honored with a nomination for the prestigious "Green China People of the Year" award by the Ministry of
Ecology and Environment in November 2022.

Alibaba Cloud contributes to digital


water management in Ningxia
By virtue of digital technology, Alibaba Cloud offers advanced,
reliable, and secure support for water management. Our strategic
collaboration with Tsinghua University and the Ningxia Water
Resources Department has led to the establishment of an innovative
digital water management mechanism known as "Research
Institute + Pilot Zone + Industrial Park". The implementation of the
"Internet + urban and rural water supply" initiative in Pengyang
County, Guyuan City assists to create the "same source, same
quality, same price and same supply network" rural drinking water
model, offering rural residents the same water supply service as
urban residents.
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Restoring
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Reducing and recycling waste


Alibaba Cloud promotes waste management from
Proper waste management is crucial for mitigating
recycling and compliance
negative environmental impacts caused by the
improper disposal of solid waste. In many low- Raising the recycling level of equipment and accessories: Alibaba Cloud’s data centers extend
the warranty for old servers so that they can be re-put into operation after being affirmed to
income countries, a significant percentage of
be qualified. Retired servers will be dismantled, upgraded and refitted for secondary use, and
waste, exceeding 90%, is either openly dumped available accessories will be recycled.
or incinerated13. This not only leads to air pollution Compliant treatment of hazardous waste: Based on the hazardous waste generation timeline,
and respiratory diseases but also contributes to the Alibaba Cloud’s data centers have entered a contract with qualified suppliers specializing
emissions of greenhouse gases. At Alibaba, we are in hazardous waste disposal, and have treated hazardous waste strictly in accordance with
regulations.
fully committed to responsible waste management
throughout our operation and have implemented
Sun Art Retail is continuously enhancing its management
efficient practices and innovative solutions focused of food loss and waste
on four key dimensions: source reduction, efficient
Sun Art Retail has implemented loss control management practices across the entire food
management, compliant disposal, and recycling.
chain, starting from procurement, storage, processing, and selling, to the introduction
of new products. To prevent food waste, Sun Art Retail adjusts its daily food production
quantity in offline stores based on customer and sales volume. Additionally, Sun Art Retail
actively promotes the Empty-plate Campaign to resident caterers and employees, fostering
a culture of food conservation. In online sales, Sun Art Retail takes measures to avoid food
loss and waste through pre-sales strategies. Moreover, Sun Art Retail strictly adheres to
the management principle of separating wet and dry food waste and has established a
standardized workflow for waste disposal. As a result of these initiatives, Sun Art Retail
achieved a 7.4% year-over-year decrease in food waste during FY2023.

Management and disposal of waste in our


own campuses
The management and disposal of waste in our own campuses is a top priority for us. We
implemented a data-driven system for waste disposal within the campuses intending to
monitor and track the collection, classification, transportation, and disposition in the entire
waste chain. We advocated source reduction and an increased recycling rate of waste to
reduce landfill and incineration. We also initiated pilot projects for local disposal of food
and beverage waste in our core campuses, such as biological fermentation technology that
converts food waste to organic fertilizer and other reusable resources. We have also developed
and issued regulations for waste management and recycling in new campuses, and around
75% of construction waste in new campuses has been reused.

Interesting display of waste classification

13 Data source: World Bank, https://www.shihang.org/zh/news/immersive-story/2018/09/20/what-a-waste-an-updated-look-into-the-future-of-solid-waste-management.


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Ecosystem protection Building and protecting biodiversity in our own business operations

In 2022, the 15th Conference of Parties to the UN In view of the nature of our business, our assessment of the impact of our own business
Convention on Biological Diversity (UNCBD COP15) operations on biodiversity is relatively limited, including the impact of building and
established a significant milestone known as the "30 running campuses on the ecosystem as well as the potential impact of platform-based
by 30" target. This target aims to conserve 30 percent illegal wildlife trading on the ecosystem. Based on the analysis, we will make constant
of the planet's terrestrial and marine habitats by efforts to protect the authenticity and integrity of the ecosystem from these two aspects.
2030, to safeguard and restore populations of
natural and wild species that have experienced Biodiversity conservation in own campuses
continuous degradation over recent decades14. At
We recognize the significant influence that the construction and operation of our
Alibaba, we firmly believe in the interconnectedness
campuses can have on the surrounding ecosystems. Our objective is to transform self-
of people and nature, and that we share a goal for
operated campuses into thriving biodiversity hotspots within the urban landscape,
a future together. To contribute to this vital goal, we
fostering a harmonious relationship between people and nature.
are harnessing the power of our platform and digital
technology capabilities, and creating and protecting
We conduct thorough environmental impact assessments to ensure the optimal
biodiversity in our own business operations, while
integration of our campuses with the surrounding ecology, while considering indicators
collaborating with multiple parties in sharing and
such as vegetation richness and sponge city infrastructures. We actively preserve and
co-governance.
utilize native species, cultivate diverse vegetation structures, and create an inviting
habitat for numerous bird species throughout the year. An excellent example is our global
In December 2022, Alibaba's "Digital Platform for
headquarters, Hangzhou Xixi Campus, which neighbors the Xixi National Wetland Park.
Biodiversity Conservation" project was recognized as
In our plan, we have preserved the wetlands within the campus and carefully considered
one of 23 "Biodiversity Positive Practices and Actions
the river that runs through it, allowing our office buildings to coexist seamlessly with the
Around the World" cases by the UNCBD COP15.
natural environment. In the soon-to-be-completed Xixi Phase V Campus, we have also
Our project provides experience reference to other
designed various sponge city type design facilities such as bioretention ponds and rain
companies that actively engage in and contribute to
gardens to provide food and habitat for insects and birds, while storing and purifying Xixi Campus
the crucial cause of biodiversity conservation.
rainwater. Our focus lies in protecting and restoring the native ecosystem.
Building and protecting biodiversity in own
business operations

Collaborating with multiple parties in


sharing and co-governance

Birds on campus:: Red-billed Blue Magpie Plant labels on campus Geese on campus

14 Data source: United Nation, https://news.un.org/zh/story/2023/06/1118977.


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Restoring
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Employee engagement in biodiversity


education and conservation
Alibaba's plant experts for the Nature Academy Happiness Tour
In today's urban landscape, many residents
In March 2013, a group of nature-loving Alibaba employees In FY2023, we proudly expanded our team with 40 new conducting weekly guided plant appreciation activities, with
experience a sense of disconnection from nature,
established the "Nature Academy Happiness Tour", with a members through comprehensive training programs. These more than 1,000 participants engaging in natural science
leading to what is commonly known as "nature focus on museums and natural sciences. newly certified plant experts have taken on the role of education.
deficiency disorder". Recognizing our responsibility
as a company, we are dedicated to finding ways
to foster a healthier and more vibrant environment
for our employees, communities, and residents.
We aim to establish a closer bond between people
and nature, cultivating a sense of empathy towards
the natural world. By nurturing this connection, we
believe that employees will be inspired to unlock
their creativity and embrace a greater appreciation
for life, and share knowledge and the concept of
green living with a broader audience.

One hour plant appreciation per week Removal of invasive species like Canada goldenrod to
protect the local ecosystem

One or two weekend nature activities per month for families and children Making campus plant labels Take biodiversity surveys in Xixi wetland, farm and mountain areas
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Wildlife conservation through digital platforms


Illegal hunting and trading of wildlife pose significant threats to biodiversity. As the world's leading e-commerce platform, Alibaba leverages its digital capabilities to
actively support wildlife conservation in various ways. We proactively identify and report instances of illegal wildlife trade, collaborating closely with law enforcement
agencies to clamp down on these activities. Additionally, we undertake initiatives to raise awareness among our users about the importance of wildlife conservation,
encouraging the public to actively participate in conservation efforts.

Leveraging technology for a comprehensive Promoting conservation awareness and


crackdown on illegal trade participation through consumer education

We have been actively combating the illegal wildlife We launched the "GreenNet Program" across various
trade on our platform by implementing robust APPs such as Taobao, Idle Fish, and Youku. As of
measures from the supply side. Our commitment March 31, 2023, we have successfully transformed
is to utilize cutting-edge technologies, such as AI 8.52 million user search results related to the wildlife
algorithms, which enable us to effectively monitor trade into science education and advocacy pages,
various forms of content, including texts, images, contributing to disseminating important conservation
videos, and live streams. Through these advanced messages. Within the GreenNet Program, we
tools, we can intelligently identify indicators of introduced the "Philanthropic Guardian Action"
illegal activities, such as hunting tools and key on Taobao and other applications, aiming to raise
personnel, enabling us to take immediate action public awareness regarding endangered wildlife. We
against violations and contribute to the dismantling have partnered with reputable organizations such
of illegal wildlife trade networks. As a result of our as the China Wildlife Protection Association and the
efforts, we have successfully played a role in cracking International Wildlife Trade Research Organization
down on numerous cases involving wildlife hunting, to build a comprehensive knowledge base focused
collection, and illegal trade. Notably, Alibaba's on scientific education. As of March 31, 2023, 240,000
involvement has garnered recognition in a high- individuals have participated in the "Philanthropic
profile illegal hunting case in Xianju County, Taizhou Guardian Action". We are proud to share that the
City, Zhejiang Province. In December 2022, this case GreenNet Program received recognition for its
was recognized as a "typical case of biodiversity outstanding online law dissemination practices by
protection by a procuratorate institute of Zhejiang the Cyberspace Administration of China in FY2023.
Province.

Digital platform model supports biodiversity conservation


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Aggregating the platform's resources for In FY2023, the "Goods for Good" program supported of domestic endangered wildlife such as finless project has received support from over 163 million
biodiversity conservation over 10 projects in environmental and animal porpoises, black bears, and Asian elephants. As of participants and directly funded eight demonstration
protection, with a total donation amount exceeding March 31, 2023, this program has raised over RMB3 sites to bolster the patrol system. This support
We leverage the power of our platform to gather RMB10 million. These projects encompass various million for wildlife conservation through donations has contributed to a total of 98 assisted patrollers
resources and support biodiversity conservation areas, including biodiversity, green and low-carbon generated from the sale of Goods for Good offered covering 495,000 kilometers of patrol, assisting
initiatives. One of our notable initiatives is the initiatives, and environmental protection. by pet product retailers. the fisheries administration in cracking down on
"Goods for Good" program, which provides a illegal fishing 380 times, and cleaning up illegal /
platform for retailers to actively participate in public In collaboration with pet retailers on Taobao, Alibaba Since 2019, we have initiated the "Save the Smile abandoned fishing nets weighing over 46 tons.
welfare. Through this program, sellers can designate Foundation has launched a biodiversity conservation of Yangtze River" charity project within the Goods
certain products as Goods for Good and choose a program to support the rescue and protection for Good program. As of March 31, 2023, the
philanthropic project to support by setting a donation
amount or proportion. When buyers purchase these
designated goods on Taobao, the platform ensures
that the specified amount set by the seller is donated
to the designated charitable organization or project.

For more details:


Please refer to Chapter 6 Promoting multi-party participation
through leveraging platform power P185

safeguard the Finless Porpoise


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Restoring
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Collaborating with multiple parties in Long-term cooperation with institutions to


sharing and co-governance build an environmental information network

We have established long-term partnerships with environmental data, we seek to build a robust empower individuals and communities to participate
Supporting local natural conservation
professional organizations to build a comprehensive environmental information network to facilitate in environmental initiatives, and advocate for policy
We firmly believe that successful nature conservation and transparent environmental information- law enforcement and supervision, promote advancements that drive sustainable practices.
relies on the active involvement of local communities. sharing network. By fully mining and leveraging accountability and transparency among enterprises,
We have forged long-term partnerships with local
organizations and extended our support to frontline
communities, enabling effective local nature
conservation efforts. Promoting environmental protection through information technology: Carbon map data platform powered by Alibaba Cloud
establishing Guangzhou Green Data
The collaboration between Alibaba Cloud and Tsinghua University's Carbon Monitor
Conducting scientific investigations, Alibaba Foundation has been actively supporting the Guangzhou Green Data Environmental Service team has led to the development of a cutting-edge global carbon map data platform
raising public awareness, and Center (Guangzhou Green Data) since its establishment in 2015. Through resource support and called GRACED (Global gRidded dAily CO2 Emissions Dataset). This platform offers
supporting biodiversity conservation professional empowerment, we have helped Guangzhou Green Data to establish a platform that a comprehensive and visually immersive representation of high-precision human
in the Yeyahu Wetland covers a wide range of environmental information, including national environmental assessment, emission data, serving as a vital tool for academic research and data dissemination
pollution sources, environmental quality, and ecology, reduce data intelligence barriers and related to carbon neutrality efforts. GRACED has recorded global emission changes
Alibaba Foundation is proud to support the One Planet professional knowledge costs. since January 1, 2019. Reports and citations of the platform's research findings have
Foundation, Beijing Forestry and Park Planning and been acknowledged by prominent entities such as the United Nations Environment
Resource Monitoring Center, and Beijing Yanqing District As of March 31, 2023, we have successfully facilitated the application and cooperation of Guangzhou Programme (UNEP), the Global Meteorological Organization (WMO), and the Global
Nature Reserve Management Office in their joint efforts Green Data environmental data in various Alibaba products, such as AMap and DingTalk. From 2019, Carbon Project (GCP).
to establish a biodiversity restoration standardized Guangzhou Green Data has expanded from 440 million to over 2,680 million, involving more than 5.3
demonstration area within the pilot area of Beijing Yeyahu million enterprises and other environmental subjects. Moreover, the average monthly external data
(Wild Duck Lake) Wetland Reserve. In FY2023, we embarked calls have exceeded 20 million times.
on a comprehensive initiative encompassing biodiversity
surveys, patrols, and monitoring activities within the
reserve, established a 110-acre wetland restoration
demonstration area, and outlined strategies for restoration
and preservation.

Beijing Yeyahu (Wild Duck Lake) Wetland Reserve


Global Carbon Map
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Restoring
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Engaging and inspiring the public to become actively involved in nature conservation
Through Alibaba's digital platform, we encourage the public to develop a greater awareness of the natural world around them and take meaningful
actions to address pressing ecological and environmental challenges, such as emission reduction and climate change response. Through our Three-
hour Voluntary Service Platform, we collaborate with nature institutions and environmental protection agencies to leverage the power of the Internet
in educating the public about nature.

Encouraging public engagement in nature conservation during


Alibaba co-hosted the China Nature Education Congress environmental protection festivals
In September 2022, Alibaba Foundation had the privilege of co-hosting the
April 22, World Earth Day Nature Education Week" campaign, attracting more than June 5, World Environment Day
prestigious China Nature Education Congress in collaboration with esteemed
From April 18 to April 24, 2022, the Alibaba Foundation, in 500,000 participants. The campaign was recognized as the Alibaba Foundation cooperated with
organizations including the Chinese Society of Forestry, the Center for
collaboration with the Center for Environmental Education "Outstanding Communication Project of Natural Resources Hangzhou Municipal Ecology and
Environmental Education and Communications of the Ministry of Natural Resources,
and Communications of the Ministry of Natural Resources Theme Day Campaign" by the Center for Environmental Environment Bureau, Hangzhou Civilization
and the Beijing Municipal Forestry and Parks Bureau, under the guidance of the
and the Hangzhou Municipal Ecology and Environmental Education and Communications of the Ministry of Natural Office, Xiaoshan District Government, and
State Forestry and Grassland Administration and the Beijing Municipal People's
Bureau, launched the "Leave Love, Leave No Trace - Resources. China Environmental Protection Foundation
Government. This event brought together hundreds of nature education experts
to launch the "Co-Build a Clean and
and representatives from various sectors, both from China and abroad, fostering
Beautiful World, Leave Love, Leave No Trace"
discussions on the sustainable development of nature education in China. As a
campaign. Through the Three-hour Voluntary
result, the Beijing Declaration was released. Additionally, the National Medium-
Service Platform, we harnessed the power
and Long-term Development Plan for Nature Education was jointly compiled. The
of the internet to engage with millions of
proceedings were shared online, reaching and inspiring 10 million follows.
internet users, encouraging their active
participation in environmental protection
exchanges and advocacy. The online
component of the campaign is an engaging
"Nature Carnival" in Xiaoshan District,
Hangzhou. The event showcased youth
environmental protection works, highlighted
the achievements of "Waste-free Schools,"
and provided opportunities for volunteer
service related to ecology and environmental
protection. The Nature Carnival attracted
2,000 attendees.

China Nature Education Congress "Co-Build a Clean and Beautiful World, Leave Love, Leave No Trace" campaign
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Supporting Our People


At Alibaba, we believe the growth of our people's talents is the key for our
businesses to thrive. We “support employees to better themselves" and strive to
enable every employee to learn and grow in a diverse, equal, and inclusive culture
and work environment, maintain enthusiasm, create value, and get support and
care. Despite the external challenges in the past year, we believe that how we treat
our employees and support their growth will affect how we serve our customers
and communities, and determine how sustainably we can develop as a company.

Unremitting efforts have been made in the following four aspects:

● Establishing a diverse, equitable, and inclusive culture and system P67


● Offering fair, competitive pay, and warm benefits P73
● Offering abundant learning and development opportunities P77
● Creating a work environment conducive to improving employees' health
and vitality P82
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Diverse, equitable, and inclusive Learning and development opportunities

51 hours per person


Alibaba has conducted a total of 62,383 training sessions,
with an average training duration of 51 hours per person

Over 60
Our employees hail from more than 60 countries
Supporting Our People Best Employer

and regions.

49.1% 41.9 % Among the Top 5 Chinese enterprises in the "Forbes 2022 Global
Women account for 49.1% of Alibaba's total employees. Best Employers"
41.9% of management and 30% of the board of directors
of the Group are female LinkedIn China 2022 "MostIn Global Attractive Employers"

Employee health and vitality

● EHS system establishment ● Creating a healthy and dynamic work environment

EHS (Environment, Health, and Safety) committee


Alibaba has established an EHS (Environment, Health, and Safety) committee in
Over 91 %
The evaluation score of office environment satisfaction has exceeded 91% for four
consecutive quarters
our Xixi headquarters in Hangzhou as a pilot project

2.8
Our automated Ali Assistant, which provides information and answers to many
The newly opened Alibaba Cloud's Hangzhou Cloud Valley campus is designed employee questions about work and life, has received over 2.8 million requests, with
and certified to meet both ISO 14001 and ISO 45001 standards Over million smart automated services handling over 90% of those requests by March 2023
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Supporting
Our People

Establishing a diverse, equitable,


and inclusive culture and system
As a global technology-driven platform company, we innovation, and common growth of diverse people as
have expanded our business ecosystem across multiple the basis for our long-term and sustainable growth.
industries and regions. The diverse backgrounds of our
employees have contributed to the diversified roles and Through continuous DEI efforts, we hope to establish
cultures of different business groups. We are dedicated an inclusive workplace culture that attracts and retains
to creating long-term and sustainable business and our diverse talents, and provides them with an equal
social values. We hope to build and improve upon a system where all Alibaba employees, regardless of
culture and work environment that values diversity, differences in role, gender, race, and age, feel respected Respecting and Building a equitable Openness, cooperation
equity, and inclusion (DEI), and grows Alibaba into a and realize their values, thereby better unleashing their embracing diversity and respectful work and inclusion for
leading platform for talent exchange, collaborative potential and realizing more possibilities. environment employee engagement

Establishing a diverse, equal, and inclusive culture and system


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Supporting
Our People

Respecting and embracing diversity


We recognize, accept, and value the differences between individuals, whether
gender, race, or age, and strive to ensure that belief, values, and life experiences,
are respected and equally treated at Alibaba. We enable employees to leverage
their strengths through innovation and creation. We believe that the diversified
perspectives and styles of employees enhance the creativity, empathy, and sense
of responsibility of our team, and thus help improve our products and services for
customers.

We fully respect employees of different ages, races, genders, nationalities, and


physical conditions by creating and managing an employee diversity database
through an internal system. We adhere to the principles of fairness and impartiality
in aspects of recruitment, remuneration, incentives, training, and promotion, and
explicitly prohibit any form of discrimination for any reason. We protect the legitimate
rights and interests of female employees, resist all forms of child labor and forced
labor, and for qualified persons with disabilities, will try our best to create appropriate
working conditions in accordance with applicable laws. We actively embrace diverse
opinions, views, and ways of thinking to establish a free and open work atmosphere
and create conditions for teams with different characteristics to mutually respect and
fully collaborate with each other.

As of March 31, 2023, we have 235,216 employees working across more than 60
countries and regions, including 1,451 employees with physical disabilities. Women
account for 49.1% of Alibaba's total employees. Women's innovation and leadership
are playing an increasingly important role in company development. Women account
for 41.9% of management, 25% of executive management, and 30% of the board of
directors of the Group.

Over 60
Employees working across
1,451
We have 1,451 employees
over 60 countries and regions with physical disabilities

49.1 %
Women account for 49.1% of
41.9 %
Percentage of wowen in
Alibaba's total employees management team
Diversity
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Supporting
Our People

Building a equitable and respectful work environment

We firmly believe that only when all employees regulations are designed to safeguard the
are treated fairly can it be possible for them to legitimate rights and interests of employees.
unleash their potential. In this regard, we are In 2021, the Alibaba Group's Work Environment
committed to creating a fair work environment Committee was established. As the decision-
highlighting respect and trust while adhering making organization for handling matters
to the principle of fair recruitment and related to the work environment, this committee
talent development. On the one hand, we is responsible for formulating relevant
continuously identify and eliminate obstacles institutional processes, establishing prevention
that result in inequality by promoting top- and guarantee mechanisms, conducting
down and bottom-up institutional innovations. professional training, and advocating activities.
On the other hand, we continue to seek
new approaches for creating a fair work We ensure adequate guarantees through
environment and provide equitable resources our systems and promote advocacy through
for all employees to ensure equal opportunities publicity. Our aim is to encourage employees
for success. to value and respect each other and become
builders of a positive workplace environment.
We have launched the "zero tolerance" policy We have established a reporting mechanism
for violence, bullying, or sexual harassment in in accordance with the Alibaba Group Code
any work-related environment. According to the of Conduct against Sexual Harassment to
Labor Law of the People's Republic of China, ensure all employees readily access reporting
we have formulated the systems and rules channels. We commit to a prompt and
Boundary, video on sexual harassment at
such as the Alibaba Group Code of Business appropriate investigation, while protecting the the workplace of Alibaba Group

Conduct, the Alibaba Group Code of Conduct privacy of victims and informants and providing
against Sexual Harassment, and clarified psychological counseling and legal assistance
the principle of "zero tolerance" for sexual services for employees in need, safeguarding
Bianjie ("Boundaries"), a public service announcement video on preventing workplace sexual
harassment at the workplace. These rules and their rights at work.
harassment

On March 8, 2023, we internally released Bianjie, a public service announcement video on preventing workplace sexual harassment,
to encourage our employees to foster a favorable workplace environment that cares for women.
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Supporting
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International Women’s Day Women Science and Technology Professionals Forum


We have started to hold "Her Power" Award Ceremony on International Women's Day (March 8th) since 2022, at which our In November 2022, we, in collaboration with the Hangzhou Association of Women Science and Technology Workers,
Responsibility Award, Bravery Award, Sturdiness Award, Vitality Award, and other individual awards as well as Women's hosted the "Her Power" in Science and Technology Innovation "2022 Apsara Conference Women Science and Technology
Civilization Post Team Award are awarded to review and commend the achievements of female employees. Professionals Forum", marking the first specialized forum at the grand Apsara Conference with a focus on the growth of
female science and technology talents as well as the transformation of their technological achievements.
This year, the China Digital Business Mechanism and Rules Team, with a 73% proportion of female employees, is
awarded the Women's Civilization Post Team Award. Adhering to the essence of "customer first", these female employees
consistently maintain a proactive approach and implement fair and reasonable mechanisms with a business-oriented
perspective to safeguard the platform's commercial interests.

Furthermore, we prepare customized and self-designed gifts for five consecutive years to symbolize our respect for
Alibaba's female employees.

Women's Civilization Post Team Award 2022 Apsara Conference Women Science and Technology Professionals Forum
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Openness, cooperation and inclusion for employee engagement

We fully understand and respect the differences structures, and implementing diversified practices We encourage employees to seek help from quality improvement. As of March 31, 2023, a total of
between our employees, and aim to create a for promoting employees' sense of belonging and experienced colleagues by "posting" their questions 950 employees have shared their experiences and
corporate culture that makes all employees integration. and issues at work on the intranet. In FY2023, a total insights on Experience π, attracting nearly 68,000
feel valued and have a sense of belonging and of 39 topics were discussed on the intranet, with visits.
integration. We firmly believe that an inclusive and To hear the voices of our employees, we have built 2,683 high-quality positive suggestions proposed.
diverse workplace environment can attract high- multi-dimensional communication channels with the Experience π, which was launched in August 2022, is
quality talent, maximize the potential of employees, aim of creating an unrestricted and open community a new section on the intranet, where employees can
and spur cooperation and innovation. We have for our employees across the world. The number of post and comment on cases, customer feedback,
also established a mechanism for transparent active employees on our intranet reached 133,193 in and business suggestions. Through the intranet,
communication in addition to establishing FY20231. we gather valuable experiences to increase sharing
management systems, building governance and cooperation regarding product and service

18th AliDay in 2022

1 The scope of the employees counted here is employees directly managed by Alibaba. Active employees on the intranet are defined as
those who have logged in and visited the intranet at least once in FY2022.
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We ensure that senior management is readily with employees through regular lunch meetings, and employees via the Booking system, where provide feedback through the OPEN mailbox. We
accessible to all employees. "Juice with Daniel" is afternoon teas, or video chats, among other means. all Alibaba managers can make appointments ensure that all feedback provided in the OPEN
a face-to-face discussion regularly held by Daniel These lines of communication allow employees to available, allowing employees to book a time and mailbox will be responded to within 48 hours and
Zhang, Chairman and CEO of Alibaba Group, to openly and transparently discuss topics related to communicate directly with managers over a coffee, the personal information of employees will be kept
interact with employees. Nineteen sessions have their personal development and the company's a light meal, or even an outdoor hike. In FY2023, a confidential.
been held from July 2020 to March 31, 2023. Similarly, progress, as well as express their opinions and total of 1,113 managers released 5,209 appointment
the CEOs of Taobao, Tmall, Cainiao, Lazada, and suggestions. At Alibaba, we have also promoted invitations on Booking, and accommodated a total
other business groups also promote communication two-way communications between managers of 5,946 participants. Employees may also directly

Communication via the Booking system is a two-way


communication mechanism,
rather than a top-down one-way communication.
I can receive a lot of real voices and feedback,
which are very important inputs for business judgment.

—— Manager feedback

Why not have a free chat with outstanding persons?


This allows me to understand the business in a larger picture,
which is extremely helpful to newcomers, and will guide my long-
term work and direction.

—— Employee feedback
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Establishing fair and competitive remuneration with


heartwarming benefits
Employees are core to realizing Alibaba's employees, and have been innovating and
potential. As such, we have devoted ourselves improving measures to protect employee
to providing comprehensive support benefits. Through this, employees can enjoy
and benefits for employee growth and a renumeration incentive mechanism that
development. In line with this commitment, integrates both internal fairness and external
we consistently share the benefits of our competitiveness. While caring for employees
growth with employees. Furthermore, we have with "benefits with warmth", we have extended
also established a comprehensive system to our heart-warming care and comprehensive
protect the legitimate rights and interests of rights protection to our employees’ families. Talent recruitment Fair and competitive
Benefits with warmth
and retention remuneration and incentives

Establishing fair and competitive compensation with heartwarming benefits


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Talent recruitment and retention


We observe relevant laws, regulations, and according to the law. We adhere to the principle of occupational safety and health protection, and transfer platforms as well as intranet recruitment
international standards during our recruitment equal employment, recruitment, promotion, and enjoy social insurance and other legal benefits. In square which have provided them with open and
and employment process, and respect and protect remuneration of employees without discrimination. February 2021, Alibaba became a party to the United transparent internal transfer opportunities. We
the rights and interests of employees to ensure Alibaba fairly and justly treats employees of Nations Global Compact, endorsing and supporting ensure and encourage the internal flow of talents,
compliance and fairness. Through the establishment different nationalities, races, ages, genders, the Ten Principles initiative and integrating them into and promote a broader development space for
of a variety of talent recruitment channels to attract physical conditions, religious beliefs, and cultural corporate principles and daily operations. talents internally.
talents widely, and upgrade the talent pool in backgrounds. We adopt and follow the Alibaba
an intelligent manner, we improve the matching Recruitment Convention, and release internal We have established a dual-track system for In FY2023, Alibaba took further steps to improve the
efficiency between positions and talents. management guidelines such as the Alibaba Group employees’ career development, featuring a internal job transfer process, allowing employees
Code of Business Conduct, Alibaba Group Employee "professional" and a "management" track, and to submit a transfer application after passing the
Alibaba follows international conventions and local Disciplinary System, Alibaba Group Employee Leave employees can achieve long-term development in interview, and informing their supervisor and human
laws and regulations on labor and employee rights Policy, and Alibaba Group Employee Performance a professional and profound manner based on their resources manager, protecting employee privacy
such as the Universal Declaration of Human Rights, Management System, so that all candidates have interests and advantages. To create more internal to the greatest extent. In FY2023, 3,311 employees
the International Labor Organization Convention, equal access to information and resources. Alibaba opportunities for talents, we ensure and encourage voluntarily applied for and successfully transferred
and the Labor Law of the People's Republic of enables employees to equally enjoy legal rights such mobility of talents internally through the Alibaba internally.
China, and signs labor contracts with employees as obtaining labor remuneration, rest and vacation, Group Employee Internal Transfer Policy and internal

"Forbes 2022 Global Best Employers,"


one of the Top 5 among Chinese enterprises

LinkedIn China 2022


"MostIn Global Attractive Employers"

Focusing on the growth of talents


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Fair and competitive remuneration and incentives

We adhere to the principles of fairness and justice, With an increasing organizational scale and business
abide by local laws and regulations, and practice structure complexity, improving agility in our
equal pay for equal work. We also provide employees operations and management is pivotal. We therefore
with competitive incentives linked to performance. As introduced the Objectives and Key Results (OKR)
one of the first major technology enterprises in China system in FY2023 to enhance managers' holistic
to offer an Employee Stock Ownership Plan (ESOP), thinking regarding business objectives, strategy, and
we have continued to reward employees who grow implementation. At the same time, adapting the OKR
together with the Company through equity incentives system also helps our employee to better understand
to share the Company’s achievements with them. the goals and directions of both the team and the
organization, while trying to unleash their potential.
A fair and equitable performance appraisal The three-in-one system, consisting of the OKR,
system constitutes the cornerstone for motivating performance appraisal, and peer review systems,
employees. Managers and employees set out goals covers all our core business units and enables a
at the kick-off of each period and offer them with more transparent, cohesive, and agile information-
communication and coaching. In their performance sharing mechanism.
appraisals, employees first conduct self-performance
appraisals and then invite related partners and
colleagues to review their performance as well
(known as "peer review"). Managers then make their
evaluations based on the employee’s self-appraisal
and feedback from partners. This facilitates a
more comprehensive and objective feedback
system. In the case of a dispute of performance The biggest benefit of OKR is openness and transparency,
appraisals by an employee, they can apply for a re- by which employee can know each other's tasks and
review by a specialized review team via the review responsibilities, enabling us to collaborate and communicate
appeal channel. Meanwhile, Alibaba also offers more easily.
performance improvement coaching channels to
ensure fair performance appraisal in all aspects. All process management has been digitally recorded, providing
solid evidence for performance appraisals.

——— Feedback from Alibaba employee

"Juice with Daniel":OKR communication


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Benefits with warmth


We are committed to providing "benefits with warmth" for every employee. We hope to provide a secure living guarantee for Alibaba employees and their families to alleviate their worries and enhance their sense of happiness. In FY2023,
we established a welfare portal to display an array of available benefits by category, helping employees to learn about their diverse benefit options in one place.

Healthcare Work-life balance Benefits with Alibaba characteristics


Alibaba provides employees with various healthcare Alibaba provides employees with flexible working hours, Alibaba prepares festive gifts and work anniversary
benefits including basic medical insurance, annual leave, companionship leave, parental leave, gifts for employees, and sends a "Letter Home" to
supplementary commercial insurance, additional "RMB long-term service leave, travel leave, marriage leave, employees' families every year.
million+" medical insurance coverage, annual physical personal leave, maternity-related leave, and other
examination, physical and mental health consultations, abundant holidays and encourages relevant teams to Through the iHelp dandelion mutual assistance
medical assistance, and healthcare knowledge arrange flexible work for one day a week. In FY2023, program, employees and their families who participate
education and outreach. the number of employees using companionship leave can apply for assistance when encountering major
reached 62,138, and the number using parental leave illnesses or unexpected events.
Caring for the family reached 14,118.
Alibaba provides free physical examinations annually Through the iHope rainbow program, employees and
for employees' parents as well. As of March 31, 2023, Alibaba invites experts in obstetrics and gynecology, as their families who encounter significant difficulties
the number of designated institutions for medical well as psychological counseling, to share healthcare in their lives can apply for the company's Rainbow
examinations reached 282, covering 174 cities in China. topics related to pregnancy and childbirth with Program's "Special Difficulty Aid Fund".
We have arranged over 64,000 parental physical exams. pregnant and postpartum employees and their families.
Alibaba provides various healthcare benefits for In October 2022, we established a maternity school and Through the iHome property purchase program, Alibaba
children of employees including free medical insurance, created a community for new and expectant parents. aims to alleviate the pressure of down payment on their
Through our programs, we seek to assist new parents first home purchase. In FY2023, 1,281 employees were
in navigating this significant phase of their lives with helped by iHome with disbursed loans.
convenient and professional support.

commercial supplementary medical insurance, and


professional medical consultation, and provides help
and guidance on children's enrollment. We have over
33,000 employees' children enrolled in commercial
insurance coverage.
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Offering abundant learning and


development opportunities
Adhering to the concept that "all employees and resources to employees through digital
can better themselves at Alibaba", we provide systems at different stages of their career and
high-quality learning and growth opportunities life development, advancing their personal
so that employees can explore their potential. growth and professional development.
We also offer diverse learning opportunities

Talent learning and Construction of digital


development learning platform

Offering abundant learning and development opportunities


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Talent learning and development Intern training Newcomers' development


We highly value the recruitment and onboarding To help new employees quickly integrate into the transition into their career at Cainiao.
"Passing on the flames of knowledge, promoting experience of interns and university recruits, ensuring Alibaba family and adapt to the environment of
mutual learning and teaching" is a distinctive they can fit themselves into Alibaba smoothly. In Alibaba, Alibaba provides 5-day of onboarding Lazada has launched the Lazada Experience
aspect of Alibaba's culture. As of March 31, 2023, FY2023, we established the Intern Management training to help them understand the Company’s Program for new employees, which enables them
over 3,000 part-time lecturers have taken their own Department that designs tools and organizes history, businesses, and culture. With the support of to interact extensively with colleagues from different
time to share their experiences and reflections on activities to optimize the internship experience, senior managers and guidance from more veteran departments of the Company. They can interview
organizational culture, business management, which covered approximately 3,000 interns. The staff, we help new employees quickly adapt to the sellers for business experience, communicate
professional fields, etc. in over 8,000 courses. These mini program, known as "Let's Go Interns", helps work environment. Through elective courses such with and learn from colleagues from different
lectures have assisted new employees in settling into the interns adapt quickly to their positions. At our as general skills and mindfulness, we help new departments, and gain firsthand experience of
the workplace, and both employees and managers "Speak Up Interns" event, interns can receive advice employees learn and improve. operations by visiting logistics warehouses. These
in upskilling. Furthermore, we suggest that managers from experienced employees and managers. opportunities facilitate a deeper understanding of
should give 6 hours worth of lectures every year. "The Summer of Interns" event helps boost Cainiao established the "Newcomer Classroom", with Lazada's mission, vision, and culture, familiarization
We've established a full-link internal lecturer system communications among interns. We have also made a focus on the ties linking business, organization, with operations, and establishment of a wider
covering registration, certification, and training, available to interns some carefully-selected learning and people. It consists of four modules, namely communication network. In FY2023, Lazada held 22
ensuring the implementation of Alibaba's culture. materials otherwise only accessible to employees. "Sailing Start" "Actual Training" "Experience Sharing" sessions of the Lazada Experience Program.
and "Personal Belonging", and provides a set of
To better serve the diversified learning demands induction training schemes for all new employees so
of employees, we have established a training they can quickly understand Cainiao and effectively
system that regards the talent cultivation project adapt to Cainiao's work culture, and smoothly
system at the core and integrates online and offline
development. In FY2023, Alibaba conducted a
total of 62,383 training sessions, adding 33,437
new learning materials for employees, with a
participation rate of 96.9% and an average training
duration of 51 hours per person2.

51 hours
An average training duration
of 51 hours per person

62,383
Number of training sessions

2 The scope of training-related data statistics is for full-time employees directly managed by Alibaba.
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Leadership development Global development


Alibaba encourages those in management positions towards continuous learning. We have not only Our global development training program now covers managers and new employees from countries and
introduced high-quality external resources for sharing, learning, exchanges, and discussion among all regions in Asia, Europe, and the Americas and centers on cultural identity, communications and collaboration
employees, but have also organized internal sharing sessions and collaborative discussions to create a enhancement, and management capabilities improvement. In response to a series of changes in the
mechanism and environment for continuous learning among managers. Through this, we assist employees organization, we have optimized the teaching and interaction forms through online research, coaching
in broadening their horizons, breaking boundaries, and updating their knowledge and skills regularly so that feedback, guest speakers, video micro classes, and other means, establishing a communication bridge
they can apply this knowledge and skill to business development efforts. between the organization and overseas individual employees, and enabling overseas employees to
understand and actively embrace organizational changes effectively. To assist in diversified business and
We have launched an online learning system for managers called "Management Handbook", with the aim talent development, we have also conducted targeted training projects for foreign overseas business
to develop their general management capabilities and help them master the working philosophy and managers and Chinese expatriate managers (such as the Golden Bridge leadership project for overseas
principles, key processes, tools and methods based on representative management scenarios throughout cross-border e-commerce and Cainiao's Eagle Plan leadership program), thereby enhancing the ability
the year. In the past year, "Management Handbook" has upgraded the fourteen scenarios from webpage of managers to lead diverse teams and build high-performance teams in cross-cultural scenarios, and
materials to an interactive course learning mode, with an annual coverage of over 80,000 trainings. We providing organizational and talent capability support for the implementation of the globalization strategy.
have also set up various training camps for managers at different stages - including managers transitioned
from individual contributors, successors of key business positions, and newly promoted managers - to
provide them with different learning materials and training plans that aim to help them transition smoothly
and grow in their new positions.
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Professional development
We establish professional committees in fields including technology, data, design, marketing, risk
management, customer experience, organizational and talent development, and ESG, promoting
employees to learn and exchange professional knowledge easily and improve skills.

Professional Training on Customer Experience ESG professional training


Adhering to the "customer first" principle, Alibaba always strives to provide customers with a higher quality experience. In For the effective implementation of our ESG strategy, employee consciousness and alignment is indispensable. We have
FY2023, we organized a total of 17 training sessions covering industry information, professional methodologies, experience organized multi-layered ESG training activities in the previous year. We have invited different external lecturers to regularly
and practices, and general knowledge for employees who specialize in customer experience. These training sessions focus speak on ESG topics such as climate risk, biodiversity, supply chain ESG management, DEI, and anti-sexual harassment via
on the value of customer experience, travel service design experience, instant messaging service experience, consumer lectures, management meetings, new employee training, and ESG interpretation meetings. Through this, managers and
healthcare industry experience, online payment, and other best practices in service and experience. The training aims to employees can better understand different ESG topics and how they relate to their daily work. Such content has also been
help employees in customer experience improve their professional competence and create a better customer experience. organized and included on the internal learning platforms for the reference of employees.

Cainiao Professional Training on Customer Experience ESG training


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Construction of digital learning In FY2023, to further enrich the learning content and improve the learning
experience, we upgraded "Alibaba Learning" in three areas:
platform
Developing interactive courses Introducing high-quality external courses Upgrading hybrid training
We strive to construct a digital learning platform Focusing on the differentiated requirements for During the COVID-19 pandemic, we worked to
We have independently designed and developed
and knowledge-sharing community represented employees' abilities and development, we have improve the training system through dynamic
a total of 53 online interactive courses, such as "My
by "Alibaba Learning" and the "Alibaba Technology introduced 425 high-quality external courses and student group selections, as well as online sign-
Performance", "OKR Objective Management", and "An
Association (ATA)" and offer a vehicle for knowledge constructed 482 personalized learning paths. These ups, activities, and group assignments. We also
Introduction to Management" to provide employees
accumulation, exchanges, and sharing for courses and pathways integrate high-quality internal established a credit system for studies.
with an immersive, interactive, and game-based
employees. and external learning content to provide employees
learning experience. In FY2023, a total of 19,630
employees participated in learning. with extensive, targeted, and guided learning
ATA is a technical exchange platform for the Alibaba resources.
technical worker community, where engineers can
communicate and collaborate with each other,
bridge internal and external technical capabilities
and perspectives, and form valuable and systematic
deposits of knowledge.

Alibaba Learning, as an internal online learning


platform for all Alibaba employees, has pooled high-
quality learning resources and training content in
culture, management, professional skills, business,
and general skills, and so on, and supports mobile
and PC learning anytime and anywhere. In FY2023,
Alibaba Learning attracted the participation of
144,789 active employees.

144,789
Number of active employees of Alibaba
Learning

Enrich the learning content and improve


the learning experience
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Creating a work environment conducive to


improving employees’ health and vitality
Our commitment is to provide all employees emergencies, we effectively protect the safety
at Alibaba with a safe and healthy work of employees and the operations of the Group.
environment. In this regard, we have We have endeavored to create a healthy,
endeavored to improve our capabilities to safe, beautiful, comfortable, intelligent and
handle emergencies, prevent and reduce digital office environment, aiming to assist all
the occurrence of emergencies, and reduce employees in maintaining healthy physical and
damages and harm to the extent possible. sound psychological conditions at work through
By establishing an efficient safety system offering comprehensive and professional
and improving the response process for health services and diverse club activities.
Safeguarding Enhancing the physical Creating a healthy
occupational health and and mental health of and vibrant work
safety employees environment

Aiming to assist each employee in maintaining healthy physical and psychological conditions at work
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Safeguarding occupational
health and safety
Build occupational health and safety management system
The health and safety of all Alibaba employees is our ● In terms of organizational construction, we have People's Republic of China to determine the organizational Responder Party Member Vanguard Team" and "Alibaba
established the EHS (Environment, Health, and Safety) structure and responsibilities. Following the principle of Administrative Safety First-aid Responder Emergency
paramount concern. In FY2023, we started to build
Committee at Xixi Headquarter Campus as a pilot program to "overall coordinated management by the decision-making Response Team", to ensure efficient handling of emergencies
our occupational health and safety management promote the implementation of the EHS system and culture body, specific leadership by the emergency teams, and in our campuses. Alibaba's first-aid responder project team
system. In accordance with the ISO 14001 and ISO in each campus. concrete treatment at the regional level", we have clearly was recommended as the "Model Team for Emergency
45001 standards, we systematically optimize and ● In terms of system certification, the Hangzhou Cloud Valley defined the risk types, levels, response and treatment Rescue Work of First-Aid Responders" by the Zhejiang
upgrade the existing safety management. We uphold Campus, which was put into operation in September 2022, processes, and drill methods, and enhanced the emergency Branch of the Red Cross Society of China (RCSC) in 2022; the
is our first headquarter campus awarded the certification response ability of our frontline employees by conducting "13520 Emergency Rescue Volunteer Service Project" was
the concept of safety first and form a characteristic
of ISO 14001 and ISO 45001. Meanwhile, we are working on red-blue confrontation drills on a regular basis. recommended as the winning project of the "2022 Volunteer
health and safety culture through organizational the certification of the Xixi campus. The experience will be ● In terms of EHS training, we have carried out regular Service Competition of Zhejiang province" organized by the
construction, health and safety awareness-raising, steadily applied to other campuses across China. healthcare training and lectures and launched safety classes Publicity Department of the Provincial Party Committee of
and health and safety system construction during ● In terms of cultural development, we gradually form a in the internal system "Tenzo Pass Code" to raise awareness. Zhejiang Province. As of March 31, 2023, Alibaba has 5,732
business development. characteristic EHS culture through emergency management, ● In terms of organizational resource guarantee, we have first-aid responders, with an increase of 4,130. A total of
EHS training, and resource guarantees on the basis of established and improved emergency facilities and teams 74 training sessions and 518 hours have been conducted
risk management. We have established a campus risk to address employee safety threats arising from unexpected for first-aid responders. We have designed and built an
All of our self-built office buildings are equipped distribution map to systematically identify, assess and events. We have established and continuously expanded emergency rescue response support management system
with comprehensive accessible infrastructure, manage risks in all campuses. the first-aid responder project team, with employees as that covers various offices. These offices are equipped with
providing convenience for employees and visitors ● In terms of emergency management, we formulated the main members and including "Alibaba First-aid Responder 138 automatic external defibrillators (AEDs) to minimize the
with disabilities. We provide specialized services for Alibaba Group Administrative Emergency Operations Manual Volunteer Service Team" (currently the 9th volunteer service health risks of employees.
in accordance with the Emergency Response Law of the team of the Red Cross of Yuhang District), "Alibaba First-aid
groups in need, including mother and infant rooms,
sleeping rooms for pregnant women, and prioritized
care to pregnant women in terms of transportation,
dining, and other needs. We also provide exclusive
meal delivery services for employees with difficulties.

5,732
First-aid responders

138
Automatic external
defibrillators (AEDs)

Alibaba First-aid Responder Volunteer Service Team


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Enhancing the physical and mental Psychological counseling Psychological assessment Psychological lectures
We maintain a 7×24 psychological counseling To assist employees in better understanding In FY2023, mental health lectures were primarily
health of employees
hotline, which includes topics such as family themselves and exploring their personal held in the form of monthly livestreaming, covering
emotions, parent-child education, self-growth, psychological state, we launched a mental topics including female personal development,
We attach great importance to the physical health
and interpersonal communication. In FY2023, health test in May 2022. Twelve mental health emotion regulation, positive attitude and coping with
of our employees, providing free physical exams
we provided over 400 counseling services for our questionnaires were selected based on four pregnancy. During the outbreak of the pandemic
every year. We also invite experts and doctors from
employees. During the outbreak of the pandemic dimensions, namely psychological health, emotions, in December 2022, we launched "positive mental
medical institutions to provide our employees with
in Shanghai from April to July, 2022, we additionally personality type and workplace relationship, by attitude construction in the post-pandemic era", a
one-on-one onsite or virtual consultations following
maintained a psychological counseling hotline for which employees can acquire personal evaluation course to assist employees in adjusting to changing
the exams. For chronic and serious medical
the employees’ families and offered nearly 200 free reports and personalized feedback for suggested situations.
conditions, we provide employees with professional
counseling services for employees' families. next steps. As of March 31, 2023, a total of 3,944
health consultations, medical guidance, expert
participants took these assessments and obtained
recommendation, and other services. In addition, we
personal evaluation reports as well as related
regularly carry out employee health education and
feedback.
awareness activities every year, such as women's
wellness, expert consultations for navigating
tertiary hospitals, health lectures, and free medical
diagnosis. Positive Psychology Club Traditional Chinese Medicine
(TCM) Festivals
As one of the ten Alibaba Fun Clubs, the positive psychology of proactive assistance toward others. Doing so, we strive
We regard the psychological health of employees as club is a member of the Alibaba "Hugs and Help" groups. It to reshape our understanding of personal well-being and We have held the Traditional Chinese Medicine (TCM)
equally vital. Following the concept of "CARE&LOVE", regularly organizes training sessions on positive psychology, happiness. Festivals for 11 consecutive years, where TCM experts
we provide employees with various services such as and concentrates on companionship and guidance from the from various provinces and cities in China are invited to
perspectives of workplace, life, family, and personal growth to deliver free TCM diagnoses, health education, therapeutic
psychological counseling, lectures, psychological
foster motivation. The club also organizes members to actively massages, and other health activities in our offices across
assessments, and education on psychological participate in philanthropy, aiming to aid more people in need the country, and organize special sessions for family
health. and boost one's sense of well-being. members. We hold at least 25 TCM activities every year,
with an average of nearly 2,000 employees and their
In FY2023, we collaborated with the Positive Psychology Alumni family members participating in the cities with the highest
Association of Tsinghua University to implement the corporate participation.
happiness project. Through 4 professional online learning
and community interactions, we have achieved a total of over
8,000 views; we have collaborated with relevant institutions
and organized an online COVID-19 mutual assistance and
companionship camp in April 2022, as well as a workplace
empowerment and growth camp in June 2022.

We aim to transform our daily actions and behaviors through


acquiring professional knowledge and fostering a sense
Alibaba positive psychology club
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Creating a healthy and vibrant work Work environment


We have fully integrated principles of sustainable In conjunction with culture and food, we have launched artificial and smart tools, and address their various
environment
development, humanistic care, office culture, and seasonal dishes based on 24 solar terms to encourage life and work demands in the campuses to improve their
A healthy and vibrant work environment is crucial professional efficiency for a bright and convenient office employees to adapt diets according to the season. service experience and wellbeing. For example, we have
for productivity and creativity. We endeavor to environment, convenient and healthy living facilities, Furthermore, we have introduced a new catering completed digital upgrades based on the technology of
create a green, healthy, safe, and comfortable office comprehensive and effective safety protection, and format, i.e., light food options and buffets, that provides Artificial Intelligence of Things (AIoT) in major campuses
and living environment across Alibaba campuses, warm, professional and efficient end services. Through employees with healthy and nutritious meal options. across China, and have developed dozens of digital
address employee problems, and improve their this, we aim to continue innovating physical and digital products on this basis, providing comprehensive and
experiences via smart tools. We also encourage and workspaces, create a pleasant work environment for Furthermore, we have also equipped a series of campus high-quality services while maintaining high-frequency
support employees to establish activity groups and employees, and inspire innovation. facilities, including gyms, physical therapy rooms, interactions with employees.
build an extensive and diverse cultural and sports and health centers, providing employees with health
atmosphere across Alibaba campuses. We are committed to creating a green and healthy services such as exercises, stress relief, and counseling. To address employees' concerns in both their work and
campus environment. In addition to pursuing green and personal lives, we have comprehensively upgraded
low-carbon offices, we operate office spaces following We attach great importance to the office experience the service system from manual assistance to chatbot
the principle of "people first". Since 2022, we have aimed of our employees and the health of the office support and finally to proactive and comprehensive
131,000
Campus area that held LEED Gold Certification
to achieve LEED Gold certification for all the Alibaba
campuses. As of March 31, 2023, a total of 131,000
environment. We perform a quarterly office experience
satisfaction survey sent to all employees for areas of
intelligent services. This has led to the establishment of
an online service system with a "30-minute response
square meters of campuses have passed the LEED Gold improvement. In FY2023, the overall office environment and 2-hour resolution" commitment. Employees can
certification. Our Hangzhou Xixi Campus is WELL Gold satisfaction rate of Alibaba's offices in China's campuses find corresponding consulting services through our

91 certified. has exceeded 91% for four consecutive quarters. 1818 hotline and Ali Assistant. Through March 2023, the
Over % consulting service volume of Ali Assistant had exceeded
Overall office environment satisfaction rate
We focus on the healthy diet principle, and provide a We adhere to the principle of "responding to and 2.8 million times, with intelligent services accounting for
wide range of catering options for employees. solving all problems", provide employees with smart over 90%.

2.8
life services in the campuses via the combination of
Over million
The consulting service
volume of Ali Assistant

Over 90 %
intelligent services

Outdoor neeting spaces Dining hall


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Supporting
Our People

Campus culture Alibaba Cloud's development and responded to "Alibaba Fun Clubs" - the largest civic organization We bring a fresh and joyful atmosphere to the
Every May 10th we designate as "AliDay". On this their concerns. In Alibaba International Digital at Alibaba - are interest clubs established and workplace by integrating cultural activities and
day, we express gratitude to families and friends for Commercial Group, employees from all over the independently managed by employees. Alibaba Fun festivals. On certain festivals such as International
their company and support through various exciting world spent the day in different ways, gathering with Clubs include a total of 43 recognized clubs. We have Women's Day and Mid-Autumn Festival, we prepare
activities. This year's "AliDay" is the first "AliDay" after families and friends through diversified activities sports clubs such as basketball, squash, and kendo gifts for employees; at the turning of each season,
organizational governance reform. We organized such as multi-country style shows, lawn concerts, clubs; arts societies such as photography, calligraphy, we launch and deploy seasonal cultural activities
activities with each business group as the main body, and daytrips to water parks and theme parks. At and painting societies; as well as personal in the campuses across China, including flower
extending the spirit of bravery, firmness, warmth, and Local Life, the first "Spring Frisbee Competition" was development clubs such as reading, English, and appreciation and bookmarker making in the spring,
love embedded in "AliDay", adhering to our original held, with 16 teams from Shanghai and Hangzhou meditation, and even a singles club that organizes skateboarding parties in the summer, Osmanthus
aspirations and running towards dreams. participating in the competition. At the same time, fun group activities. In FY2023, a number of events appreciation and moon cakes tasting in the autumn,
"AliDay" was regarded as the awarding day of Ele. such as board game competitions, Passersby Wang and market visits to learn about intangible cultural
At Alibaba Cloud, more than 2,000 employee’s me's annual honor, the "Fireworks Award", and the X Alibaba Basketball Summer Tournament, Alibaba heritage handicrafts in the winter. Our aim with these
relatives and friends came to Hangzhou Cloud Valley award-winning employees and outstanding projects Cat Petting Competition, and Alibaba King of Glory events is to enrich the cultural life of our employees.
Campus to visit our "happy workplace”. Daniel were announced and commended in the way of a League were held. Alibaba Fun Clubs are open to
Zhang, Chairman and CEO of Alibaba Group, met sofa concert. all full-time employees, who come together for their
with families and friends face to face, talked about interests to live seriously and work happily.
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Our classic cultural and sports activities in four seasons


Spring sports season Summer music season Autumn tug-of -war season Winter thanksgiving season
We hold a variety of sports activities every spring, During the summer, we ignite our passion for The tug of war competition is an iconic team event The Alibaba thanksgiving season marks the end
including basketball matches organized by various music. In the summer of 2022, major campuses of Alibaba every autumn season set to celebrate of the year with an atmosphere and spirit of
business departments as well as football leagues, held concerts and song competitions. We operate the anniversary of Alibaba. We held our third year recognizing and thanking each other. In the winter
badminton leagues, and kendo leagues, etc. a "music convenience store" on Xixi Campus, where of the competition this past autumn. Forty-one of 2022, we built a house of blessings where
organized by employees, to make employees employees can engage in team building and sing departments and organizations across the Group employees could make audio postcards via the Voice
happier and healthier with sports. At the same together. A total of over 3,400 people participated established 18 teams, and 18 customers were Post Office, prepare lanterns and write the Chinese
time, we launch a lot of activities to care about the in these activities and ordered nearly 5,000 songs. specially invited on site to cheer on and celebrate the character Fu ("happiness") to express appreciation.
physical and mental health of employees, so that During last year’s music season, these events anniversary of Alibaba and fight for our team spirit. Employees could also write New Year's wishes on
everyone can welcome the new year of work and life attracted 126,000 participants on the intranet, and the prayer signs and hang them on the prayer wall
with a positive attitude. over 750 employees formed music groups. for their wishes for 2023.

Spring Sports Season Summer Music Season Autumn Tug-of-War Season Winter Thanksgiving Season
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Enabling a sustainable
digital life
The United Nations Sustainable Development Goals (SDGs) have defined the
essence of sustainable consumption. Currently, digitalization is accelerating
the reshaping of global consumption patterns and lifestyles, improving
the well-being of consumers, and enabling sustainable development with
regards to consumption. We aim to help our customers live a better digital
life and make their consumption more sustainable.

To this regard, we believe that a sustainable lifestyle should satisfy the


following:

● Diverse consumption P90


● Trustworthy consumption P95
● Inclusive consumption P102
● Responsible consumption P105
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74 %
Being trustworthy
Over
Over 74% of Cainiao Posts offer direct doorstep parcel
GFSI China Food Safety Technology delivery service

Application Case
“The case of social co-governance of network catering” of Ele.
me was awarded the "Contribution Award of GFSI China Food
100 %

Taobao‘s virtual phone number service has covered


Safety Technology Application Case" 100% of active users

Being responsible

Enabling a Sustainable
187million
Being diverse

Digital Life The Carbon88 ledger platform has driven a total of 187
million users to practice carbon reduction

GreenNet Program
2 billion The GreenNet Program has automatically guided a total
of around 80 million potentially harmful searches to
About 2 billion items are available on Taobao and Tmall educational content

Being Inclusive

Over 320,000 More than 330,000 Over 3,300 Over 900,000


The Taobao and Tmall APPs have served Youku Barrier-free Theater have racked Amap has built over 3,300 WeCare Amap has provided accessible
over 320,000 visually impaired users up more than 330,000 content views stations for seniors navigation over 900,000 times
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Enabling a Sustainable
Digital Life

Diverse consumption
Diverse consumption can effectively satisfy the demands of
different populations and make it possible for a better life. We
actively construct a digital platform business ecosystem to
provide consumers with a variety of options of high-quality and
cost-effective products and services in a timely manner.

Our matrix Providing high-quality Giving consumers better Instant consumption


of services products and services value for money experience

Providing consumers with a


variety of options as well as
high-quality and cost-effective
products and services
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Our matrix of services Diverse supply of products


To satisfy the diverse demands of consumers, Tmall Supermarket has launched overseas
We serve all aspects of lifestyle and consumption,
ranging from basic necessities to leisure and direct sourcing, meeting the increasing
including clothing, food, housing, transportation,
entertainment, we have consistently upgraded our demand for upgraded consumption among
entertainment, and health. We provide consumers Chinese households
digital and supply chain capabilities to provide
with a wide range of products, differentiated lifestyle
consumers with more options and make it easier for In November 2022, Tmall Supermarket launched the overseas direct
services, and multi-dimensional digital consumption
them to identify the specific products and services sourcing program, covering 9 countries and 15 production regions
experiences. worldwide. This program establishes direct connections among Tmall
that meet their demands. Our retail platforms
and various origin sites. Chinese consumers can achieve one-stop
cover a full range of products, including imported
Diverse supply of products global shopping at Tmall Supermarket.
products, popular China-Chic brands, direct products
from manufacturers and farms, characteristic and “Milk produced on an overseas farm on Monday can reach the
Multi-faceted digital life services
charming products from emerging niche brands, dining table of Chinese consumers on Wednesday by airplane.”
- Roy Van Den Hurk, General R&D Manager at Theland Global.
customized products, and handicrafts. As of March 31,
2023, about 2 billion items are available on Taobao
and Tmall. Tmall introduces more art institutions,
satisfying consumers' art pursuit

About 2 billion
Number of items available on Taobao
In March 2023, the Centre Pompidou in France, a world-renowned
art museum, launched its official flagship store on Tmall, offering
five major product categories, including trendy artworks, home
and Tmall
furnishings, fashion accessories, outdoor camping supplies, and
pet toys. As of March 31, 2023, a total of 15 globally renowned art
institutions have opened stores on Tmall, with products integrating
Taobao supports intangible cultural heritage various modern and contemporary art elements, relaying the concept
of "accessing modern and contemporary art and enjoying the beauty
projects, bringing the charm of Chinese
of daily design" to consumers.
traditional culture into ordinary households

Alibaba's retail platforms are assisting an increasing number of Taobao Maker Festival provides consumers
intangible cultural heritage projects (hereinafter referred to as with trendy lifestyles
"ICH") transition from "craft workshops" and "personal hobbies" to
popularized and commercialized models. Launched in 2016, Taobao Maker Festival is a leading expo to
An example is cloisonné, an over 600-year-old art form that evolved showcase numerous trendy shops and items from Taobao as well
from ancient jewelry cloisonné enamel. Lin Xiaojie, a Taobao store as thousands of unique lifestyles. The 2023 Taobao Maker Festival,
owner, has elevated the presentation of this heritage, transposing headlined as “Uncovering Infinite Lifestyle Possibilities on Taobao,”
cloisonné from traditional decorative paintings and vases into daily held three themed exhibitions in Hangzhou, Shenzhen, and
supplies, such as phone cases, tea trays, and makeup mirrors, Chongqing. Consumers can immerse themselves in innovation and
enabling consumers to experience traditional Chinese culture inspiration through the novel products brought by creative merchants,
throughout their daily lives. opening up a Taobao lifestyle that is vibrant, and imaginative.
Diverse supply of products
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Multi-faceted digital life services


With the improvement in life quality, the demand Amap upgrades new features for various travel
of consumers for lifestyle services such as travel, scenarios, building more heartwarming navigation
entertainment, and health are also gradually ● Night riding and walking mode: Amap enables intelligent identification of
increasing. Focusing on every detail, we strive to street lamp coverage and complex road sections to assist night riding and
provide consumers with more convenient digital life walking. As of March 31, 2023, the mode has covered 20 cities and served
services from multiple perspectives. more than 100 million users in total.

● Traffic light countdown: Amap provides users with real-time and reliable
In travel, Amap provides consumers with one-
traffic light countdown in both visual and auditory forms, which minimizes
stop access to services such as navigation, route
the uncertainties of urban travel. As of March 31, 2023, the function has been
planning, ride-hailing, public transit, and bike applied to more than 80,000 traffic light intersections in China.
sharing, while Fliggy provides consumers with
comprehensive travel solutions. ● Tree shade navigation: On the basis of ensuring the rationality of
navigation, Amap recommends routes with more shade coverage for users
In entertainment, Youku and Alibaba Pictures riding or walking on hot summer days. As of March 31, 2023, the function
has covered 67 cities,serving more than 100 million users.
continue to provide consumers with a high-quality
product portfolio, including movies, drama series,
variety shows, cultural shows, documentaries, Alibaba Health utilizes digital management of
children's shows, animations, and sports, satisfying patients, providing an inclusive and accessible disease
the diverse entertainment and cultural needs of our management approach for patients with chronic
consumers. diseases
According to the Healthy China Initiative (2019-2030), chronic diseases
In health, Alibaba Health continues to efficiently account for over 70% of the total disease burden in China. Patients with
chronic diseases suffer significant mental and economic burden due
provide consumers with timely medical and health
to long-term, sometimes lifelong, need for medical consultations and
products with safe and reliable processes, and medication.
provides integrated medical services for patients
through its technological advantages and abundant We have constantly explored solutions consistent with science to help
medical resources. patients cope with these diseases. As of March 31, 2023, Alibaba Health
has built corresponding digital patient management models in 17 disease
fields, such as epilepsy, asthma, and diabetes, to assist patients in single-
handedly managing their healthcare and achieving significant improvement
in medication adherence and quality of life. The number of patients with
chronic diseases we have served amounts to nearly 9 million, a year-over-
Providing consumers with
year increase of 35%. more convenient digital
travel services from multiple
perspectives.
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Providing high-quality
products and services
Freshippo creates a supply chain of Tmall Global launches "Global The high-definition restoration technology
organic products, supplying high-quality Exploration” with cross-border delivery, independently developed by Youku is
Whether it is daily necessities or entertainment
food for consumers efficiently satisfying consumer demand for applied to the restoration of classic film
and leisure, people have higher expectations for high-quality overseas products and television works, delivering users a
In FY2023, Freshippo officially launched its organic strategy
product and service quality. We strive to bring higher higher-quality viewing experience
to build a one-stop shopping platform for organic fresh To better meet consumer demand for specialty and niche
quality to consumers while ensuring diverse and rich food, providing affordable organic products for consumers. products, we have launched our new brand "Global Since 2017, the technical team at Youku has been
product and service offerings. Freshippo prioritizes establishing partnerships with Exploration" in November 2022, with the aim to quickly dedicated to restoring classic works to an ultra-
suppliers who are trustworthy and have at least three and efficiently locate countless trendy and niche products
years of experience in the organic food industry. It has also high-definition level, leveraging super-high
across the world and bring them into the Chinese market
dived into supply chain management and strengthened resolution video enhancement and AI machine
through direct cross-border delivery. As of March 31, 2023,
cooperation with partners in planting, breeding, and learning. In FY2023, Youku completed the
over 20,000 overseas brands from more than 90 countries
processing to provide consumers with cost-effective and regions have been brought to consumers through restoration of a total of more than 30,000 episodes
organic produce with sustainable planting and farming. Tmall Global. of over 1,000 classic film and television works,
In FY2023, Freshippo launched more than 1,700 SKUs of bringing users a higher-quality viewing experience.
organic products.

Freshippo's Organic Vegetables "Global Exploration” of Tmall Global The high-definition restoration technology by Youku
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Giving consumers better value Instant consumption experience


for money AliExpress launched a new service channel
"AliExpress Choice", providing global Digitalization facilitates satisfaction of instant Taocaicai and Taoxianda were merged in May
An important mission of our business is to help consumers with cost-effective products and shopping experience demand, enhancing quality 2023 and renamed as Taobao Maicai. The service
consumers attain the best value for their money services of life. Through continuous innovation in digital provides users with two forms of fresh food
while ensuring quality. We give full play to the In March 2023, AliExpress officially launched a new service technology and logistics, we have seamlessly linked purchases, "delivery in one hour" and "self-pickup
advantages of digital platforms and the supply chain channel "AliExpress Choice", which focuses on cost-effective our logistics networks with factories, agricultural next day", in more than 200 cities across China.
products sold as low as 3 items for $1. When placing orders
to provide consumers with cost-effective products on Choice, consumers in certain countries can enjoy a series
bases, and merchants, providing comprehensive,
and services. We have continually launched new of services, including free shipping, free returns, and delivery high-quality, timely and cost-effective logistics Cainiao has constantly improved the efficiency of
online shopping functions, making prices more quality assurance. services and delivering an expedited consumption logistics and transportation and joined hands with
transparent and enabling consumers to enjoy price experience to people with different income levels Tmall Supermarket to prepare for half-day delivery
protection and make price comparisons in a more Taobao launches the "Price Protection Center" from different regions. since the end of 2022, so as to create a new "1212"
accessible manner. and "Price Comparison” functions, enabling logistics mode, which means an order placed
shopping around in a convenient manner Ele.me is constantly improving its instant logistics before 12pm will arrive before 9pm on the same
To minimize the impact of product price fluctuations on the fulfillment capabilities, delivering a wider range of day; and an order placed before midnight (12am)
shopping experience of consumers, Taobao launched the "Price products to more consumers even faster. As of March will arrive before 12pm on the next day. This new
Protection Center" function on its APP in April 2022. If the user
31, 2023, Ele.me has launched 24-hour delivery model has already been launched in Hangzhou City.
purchases the product with the price protection function, a price
difference refund could be applied through the "Price Protection services in 113 cities and 3,680 business districts
Center" interface once the price of the product is lowered during across China.
the price protection period.
To make the price comparison easy for customers, Taobao APP
activated the "Price Comparison" function in March 2023. When
searching for a certain category of products, consumers are
shown similar products for sale with their sales volume and
price. The product with the lowest price will be placed at the top
of the search results for customers' references.

"Taobao Sales Channel" was officially


launched on the Taobao homepage, providing
consumers with "products that are cost-
effective and of good quality"
To further assist consumers in searching for "products that are
cost-effective and of good quality", the "Taobao Sales Channel"
feature was officially launched on the homepage of the Taobao
APP in May 2023. Occupying the center position of the three
main tabs, "Taobao Sales Channel" enables users to place
orders quickly on a large number of cost-effective products.
Providing high-quality, timely and cost-effective logistics services
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Trustworthy consumption
Creating a trustworthy environment for consumption is vital
for achieving a better life. We are committed to improving
product quality, optimizing consumer service experience,
and safeguarding the privacy and data security of users so
that consumers can rest assured with their purchases on our
platforms.

Improving full-link product Improving the customer Protecting user privacy


quality and safety service experience and data security

Consumers can rest assured with their purchases on our platforms


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Improving full-link product


quality and safety

Guided by the principle of creating a win-win


cooperation and co-governance mechanism with
the merchants on our platform, we are committed
to offering products with better quality and safety
to our customers by regularly reviewing our
platform policies and enhancing digital governance
capabilities with our merchants. In accordance with
applicable national laws, Taobao and Tmall platform
has published over 300 regulations and policies
covering key topics including entry policy, product
quality, advertisement regulations, and quality
check1,2.

We have established a full-link digital product


quality management system, creating a trustworthy
consumption environment for consumers from three
aspects - prevention, identification, and treatment.

Over 300
Number of regulations and
"Product Quality Center" helps merchants to
improve their quality
policies Through marking and categorizing various feedback such as consumer
assessments and consultations, we enable merchants to quickly identify their
product quality problems and provide corresponding rectification suggestions,
thus improving their digital operational efficiency. As of March 31, 2023, we had
more than 1,360 quality labels in total, covering 99% of physical products on
Taobao and Tmall. This governance based on quality labels has improved the
impression of consumers of both Taobao and Tmall over the quality of similar
products on a year-over-year basis.

Creating a trustworthy consumption environment

1 Please see the link for all Taobao platform regulations: https://rule.taobao.com/#/rules
2 Please see the link for all Tmall platform regulations: https://rulechannel.tmall.com/#/
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Ele.me has established a comprehensive food safety ● Management and control of merchant operation
system, implementing the "trustworthy ordering" We have formulated the Standards and Procedures
multidimensional strategy for Reviewing Applications for Opening Online Stores
in accordance with related laws and regulations, and
Food not only satisfies basic human needs but also plays a significant role in established a professional team to review the compliance
consumers' pursuit of a higher quality of life. Digital platforms have created significant of applicants prior to their opening of online stores. We
changes within the catering industry while the rapid growth of take-out ordering has objectively evaluate the food safety performance of
also brought opportunities and challenges for platforms in terms of taking more social merchants by means of field checks and offline spot checks.
responsibilities.
● Delivery management
In 2022, Ele.me proposed a development strategy for the next decade - "trustworthy We have established hygiene management standards for
ordering, on-time delivery". On this basis, Ele.me formulates the ESG strategy of "Trust logistics stations, and adopted innovative measures such as
(trustworthy consumption), Joy (enjoyable experience) and Kindness (heartwarming personnel health tags, vehicle disinfection tags, food safety
assistance) to create a better life". In addition to delivering a satisfactory experience to sealing tags, and smart food pickup cabinets to reduce food
consumers, we emphasize the importance of providing consumers with "trustworthy safety risks during the delivery process. Ele.me's smart food
food", including adhering to the food safety baseline and striving to provide consumers pickup cabinets are primarily made of "food contact safe”
Transparent kitchen
with healthy and nutritious choices. In March 2023, Ele.me's "Cases of Social Co- materials, becoming the first batch of smart cabinets in the
governance of Online Catering" was awarded the "Contribution Award of GFSI China industry that meet national food safety standards in China. ● Protection of consumer rights and interests
Food Safety Technology Application Cases" in the 5th Consumer Goods Forum. In case of any doubts about the qualifications of merchants and the quality and safety of food, consumers can
consult, report, and complain to Ele.me through multiple channels such as APP, online customer service, and
Continuously improving a scientific management system for food safety a 24/7 customer service hotline. Customers are also entitled to claim "one-click refund" and "one-click claim".
In accordance with the Food Safety Law of the People's Republic of China and other Currently, the platform is able to resolve food safety-related refund requests within 30 minutes and process
relevant laws and regulations, we have developed a food safety system. For details compensations within 24 hours.
3
on this food safety system, please refer to the Rules Center of Ele.me .
● Emergency response system
In terms of the management structure, we have established a food safety We have established an emergency response system for food safety, continuously strengthened emergency
management department, which is responsible for building the organizational capabilities and systems, clarified and defined measures such as risk warning and monitoring, risk grading,
structure of food safety, top-level strategic planning and design, overall planning of handling processes, and emergency support, and cooperated with related authorities such as market
related institutional systems and rules, and implementation of platform governance. regulation administrations in line with current laws in handling specific emergencies.

We approach management measures from three key angles, including pre-sales


● Building a training system
management and control of merchant operation, in-sales delivery management,
We have established a food safety training system for our catering and retail merchants, and expanded
and after-sales protection of consumer rights and interests. We are also gradually
the "Worry-free E-food" training program nationwide in China. As of March 31, 2023, we have completed
building a comprehensive emergency response and training system.
and launched a total of over 20 video courses covering catering and retail issues, as well as over 100
targeted special courses on food safety. Furthermore, we have requested employees working in food safety
management to pass related tests, with a pass rate of 100% in FY2023.
Food safety sealing tags

3 Rules Center of Ele.me.:https://r.ele.me/alsc-risk-rule-center-fe/#/


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Building a new quality management model of co-governance by continuously leveraging digital capabilities
By leveraging digital technology and data, we integrate multidimensional data such as merchant behaviors, consumer feedbacks
and reviews, and the platform’s offline samplings to assist merchants in the continuous improvement of their quality. The Ele.
me APP has launched its independently developed AI food safety management tool that can analyze various types of data and
automatically assess and grade risks through its built-in algorithmic model. This tool greatly assists merchants in improving the
efficiency of food safety management and reducing the cost of food safety operation to a great extent. Moreover, we have launched
three programs - "Little Blue Heart" "Trustworthy Ordering List"and "Star-Food Rating", which aim to establish platform and industry
standards from three aspects - food safety operations, consumer experience, and scientific testing, to ensure the delivery of
trustworthy food for consumers.

● The "Little Blue Heart" program marks the evaluation of merchants on food safety. Only clean and hygienic stores can be awarded
and labeled with a "Little Blue Heart" mark in APP.
● The"Trustworthy Ordering List"is a high-quality takeout food guide. On the basis of data from "Little Blue Heart", good comments

from customers and recommendations of experts, it shows users "stores with high re-order rate", which is rated by local consumers
on a monthly basis.
● The "Star-Food Rating" program focuses on the testing and certification of dishes of merchants for nutritional value and quality of

food ingredients. Dishes certified will be marked with "Star-Food Rating" in the Ele.me APP.

Assisting merchants in the continuous improvement of their quality level


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Improving the customer Pre-sales In-sales


Alibaba has continuously improved the accessibility, authenticity, and accuracy of Alibaba has optimized the shipping and delivery modes to enable
service experience
product information, enabling consumers to find crucial product information in a more consumers to receive products in a more convenient manner.
convenient and transparent manner.
Creating a trustworthy consumption environment
depends not only on the improvement of product In terms of the delivery time, Tmall takes the initiative to give
Accessibility: We improved the product details page by rearranging the information compensation to buyers in case of delayed delivery depending on the
quality, but also on the services provided. By
displayed that may affect purchase decisions by customers, making key information such circumstances.
constantly cooperating with merchants, Alibaba
as product images and key parameters more accessible;
guarantees a full-cycle consumption experience for
customers by optimizing the service process. In terms of delivery mode, upon the arrival of the parcels from Taobao
Authenticity and accuracy: we have standardized the product advertisements published and Tmall at Cainiao Posts, consumer can select direct doorstep
by merchants to prevent them from providing false or misleading content, ensuring delivery on the shipping details page or set "doorstep delivery" as
In terms of platform services, Alibaba has
the authenticity and accuracy of product information. We have established systematic the default preference through the Cainiao APP. As of March 31, 2023,
established a full cycle service system covering pre-
advertising governance measures and strengthened advertising information governance except those in rural areas and universities, over 74% of Cainiao Posts4
sales, in-sales, and after-sales services of products,
from three aspects - developing a merchant self-inspection tool, implementing the offered doorstep delivery service to consumers. In addition, our self-
and is committed to providing consumers with
platform inspection mechanism, and strictly controlling paid advertisement. operated high-quality delivery team, Cainiao Direct Delivery (Cainiao
guaranteed one-stop service.
Express), provides doorstep delivery services for Tmall Supermarket
●We have developed a self-inspection tool for merchants to assist in the identification of in over 300 cities across China, with a commitment to "compensation
Over 74 %
Percentage of Cainiao Posts offered
non-compliant materials in advance of the release of product information. for non-doorstep delivery, compensation for late delivery, and
compensation for damaged products". During the 2022 11.11 Global
doorstep delievery service ●We have strictly implemented a platform inspection mechanism. Following the release Shopping Festival, Cainiao delivered over 200 million doorstep parcels.
of any product information, the mechanism will recognize and comprehensively detect The level of overall consumer satisfaction towards Cainiao in FY2023

0.018
potential violations of relevant laws and regulations through image and text recognition. achieved a year-over-year increase.
% Misleading information such as the use of superlative adjectives and descriptors
The complaint rate on Taobao proscribed by the Advertising Law of the People's Republic of China, claims on healthcare
and Tmall platforms
benefits of dietary supplements, special makeup effects of cosmetics, and medical
effects of non-medical devices would be intercepted and corresponding merchants
would be notified to take necessary rectification measures.

● We have strict rules for paid advertising. By integrating expert experience with data
intelligence analytics capabilities, there is a 1-minute response to reported risks and
violations and effective resolution within 5 to 10 minutes. In terms of guiding marketing
rules for advertisers, Alibaba makes risk profiles according to historical violation data,
automatically sets and applies customized rules, and provides specialized training
sessions for advertisers. In FY2023, Alibaba held more than 100 training sessions on
marketing rules for advertisers.

4 Except those in rural areas and universities.


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After-sales
After-sales service is an important part of trustworthy consumption. Alibaba strives to build convenient after-
sales consultation, rights protection, and refund channels to alleviate consumer worries.

In terms of after-sales services, Alibaba removes barriers on transferring to human customer services,
making it easier for consumers to talk to a customer service agent. In order to bring a better experience
to consumers, Alibaba simplifies the process of initiating consumer disputes and testifying through the
establishment of dispute and complaint channels, and shortens the handling time. In addition, Alibaba
allows multiple complaints for different reasons, and secondary complaints after initial withdrawal. In FY2023,
the complaint rate on Taobao and Tmall platforms was 0.018%.

Alibaba is constantly simplifying the process for returns and refunds to bring a better experience to
consumers. If any products with returns requested have already shipped, we prioritize efforts to intercept
these packages to reduce the risk of unreasonable "refusal to refund" from merchants. In FY2023, the overall
refund rejection rate decreased by 27.2% on a year-over-year basis. For any products that have not yet been
shipped, convenient refund services have been launched, including instant refunds and fast refunds. As of
March 31, 2023, convenient refund services have been available to most consumers.

In case of a dispute between consumers and merchants and the liability cannot be determined, Alibaba takes
the initiative to assist them in addressing this dispute through the Consumer Experience Protection Fund.

Establishing a governance mechanism for long-term prepaid


transactions to deal with the "prepayment trap"
Alibaba has developed a transaction model adapted to services with long-term prepayment and subscription scenarios
such as beauty and hairdressing and housekeeping services on Taobao and Tmall, and have taken a series of measures in
this regard. When a merchant reaches an online deal with a consumer, Alibaba pays the transaction amount to the merchant
in installments according to the actual fulfillment status, while the remaining amount will be supervised by the platform
throughout the entire service cycle. In case of disputes such as service suspension caused by the merchant, the platform will
refund the remaining amount to the consumer.

Tmall's after-sales service specifications were awarded the title of


"Leader" in enterprise standards
In February 2023, Tmall's Q/Ali000477-2023 Specifications for E-commerce After-sales Services were awarded the title of
5
"Leader" by the 2022 Enterprise Standards for E-commerce After-sales Services .

5 The "Leader" system of enterprise standards is a standardized incentive policy approved by the State Council and jointly implemented by eight ministries and commissions, including the State
Administration for Market Regulation, the National Development and Reform Commission, and the Ministry of Science and Technology.
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Protecting user privacy and Three principles and specific measures for
data security consumer privacy protection:
Protecting consumer privacy through the
In the digital era, consumer privacy protection By fully utilizing privacy computing technology and security computing capabilities, Alibaba full-link encryption capability and virtual
and data security are bedrocks for trustworthy has developed sound data security and personal information protection principles and phone number service
consumption. Data security does not imply a "freeze" established corresponding standards and management mechanisms covering the entire
In FY2023, through the full-link privacy protection system, Alibaba
on activities. Committed to comprehensively protect lifecycle of data, with an aim to protect consumer privacy while maximizing the value of data. motivated third-party ecosystem partners to complete the
consumer rights and interests, Alibaba endeavors upgrading of their privacy protection systems, covering the overall
to promote the efficient circulation and use of data process of order placing, order processing, warehousing, express
delivery, customer services, and membership management by
and provide consumers with personalized and high-
merchants. On the consumer side, Alibaba launched the virtual
quality services. phone number service for consumers. For users having subscribed
to this service, their actual phone numbers in the order information
will be replaced by virtual numbers in the service fulfillment process
to avoid harassment and phone fraud, safeguarding consumers'
shopping safety. As of the reporting date, the virtual phone number
service on Taobao APP has covered 100% of active users on the
platform.

100 %
Coverage of the virtual phone number service on
Taobao APP

Secure Data Hub


By utilizing multiple privacy-enhancing computation technologies,
Alibaba has launched the Secure Data Hub (SDH), a marketing
privacy computing platform. This platform is committed to providing
advertising engines, advertisers, as well as third-party testing
companies with the solutions of data fusion, privacy computing,
and joint modeling in a privacy security environment and achieving
secure and compliant use of privacy data throughout the advertising
process. In December 2022, SDH passed the seventh "Trusted
Privacy Computing" evaluation by China Academy of Information
and Communications Technology (CAICT), and was awarded the
special evaluation certificates of Secure Multi-Party Computation
(SMPC) and basic federated learning capability.
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Inclusive consumption
With a desire to enable a sustainable and better There are over 85 million people with disabilities Alibaba has developed the Guidelines for as Excellent Cases for Senior-friendly and
life, Alibaba’s ultimate goal is to provide a wealth and 260 million seniors aged 60 and above in Information Accessibility Developers to enhance Accessibility Improvement of Internet Applications
of products and services for consumers to meet China, with the number of seniors still rapidly developers’ understanding of accessibility issued by the China Academy of Information and
their demands. However, there are still many growing. Alibaba is promoting constant and and permeating information accessibility Communications Technology (CAICT). Alibaba
marginalized groups who fail to enjoy the benefits systematic technological improvement and throughout the life cycle of products and services has made publicly accessible 11 patents related
of the digital economy and digital life, especially innovation to lower barriers of using digital tools development. As of March 31, 2023, all major APPs to accessibility upgrades and age-friendly
people living in underdeveloped countries and for people with disabilities and seniors. under Alibaba have undergone accessibility and adaptation, promoting the sharing of information
regions as well as senior citizens and people age-friendly upgrades and adaptation, covering accessibility and age-friendly adaptation
living with disabilities.Through technological In 2019, the Alibaba Information Accessibility a wealth of digital life and working scenarios technology among industry peers.
innovation and the platform economy, Alibaba Committee was established to help with the such as consumption, travel, entertainment,
assists in improving this situation, closing gaps planning and promotion of accessibility and age- and communication. The Taobao, Ele.me, Idle
and bringing a better consumer life to everyone. friendly improvements to our digital products. Fish, Amap, Youku APPs have all been awarded

For more details:


Please refer to Chapter 5 Building a bridge between rural
and urban economies and markets P149
Enabling barrier-free digital consumption Ensuring a rich digital life for senior citizens

Providing a wealth of goods and services for consumers to meet their demands
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Enabling barrier-free digital


consumption Comprehensive barrier-free digital life
Barrier-free consumption: Barrier-free communication: Barrier-free entertainment:
Alibaba strives to gain a thorough understanding ● Shopping: We apply optical character recognition (OCR) ●DingTalk launched a barrier-free work platform to help the ● Barrier-free theatre: Youku processes audiovisual works in a

of the challenges that people with disabilities technology to render text information on product details in the hearing-impaired use technologies such as voice-to-text barrier-free way to eliminate the viewing barriers for visually
encounter when using digital technology, aiming Taobao APP into speech to assist visually impaired individuals and AI real-time subtitles to conduct video conferences, live impaired people. In December 2022, Youku Barrier-free Theater
to assist them in overcoming these barriers across to realize "shopping by listening to images". In FY2023, the broadcasts, online learning and other activities. As of March 31, launched an identity authentication function for visually
various scenarios of life and work. With this Taobao and Tmall APPs served over 320,000 visually impaired 2023, the barrier-free work platform has covered 31 provinces impaired people. From the launch of the program to March 31,
users. in the system of the Chinese National Association of the Deaf, 2023, the content in Youku Barrier-free Theater has been played
understanding, Alibaba can provide them with equal
and more than 80 urban hearing-impaired learning and more than 330,000 times cumulatively.
access to the benefits and opportunities that digital ● Food orders: Ele.me provides a screen reading function for working scenarios.
technology offers. visually impaired users, allowing them to easily purchase ● Braille-to-Chinese Translation Program: In FY2023, Alibaba
delicious foods without the need to see the screen. continued the collaboration with China Braille Library and
Zhejiang University by jointly launching the "Braille-to-Chinese
Barrier-free travel:

320,000 Vegetable purchase: Visually impaired users can purchase Translation 2.0", for which Alibaba Cloud provides free storage

●Since 2017, Amap has successively included navigation
Over vegetables by sliding the screen reading guide on the and computing resources to help host the library’s audiobooks,
information such as accessible restrooms and elevators. In
Transparent kitchen Freshippo APP. e-books, barrier-free movies as well as other cultural resources
November 2022, Amap introduced the "wheelchair navigation"
to the cloud platform to facilitate online use by visually impaired
feature, which offers dedicated travel navigation services for
people anytime and anywhere. For visually impaired users in
Medicine purchase: In June 2023, Alibaba Health released

900,000

wheelchair users. This function enables automatic route planning
the Chinese Mainland, China Braille Library can assist them in
a Braille medicine box to assist visually impaired people in that avoids areas such as underground passages without elevators
Over borrowing, distributing, and returning books through the free
addressing medication safety issues. Furthermore, in June, and pedestrian overpasses that are inaccessible to wheelchairs,
Number of navigation services by the home delivery service of Cainiao.
2023, Alibaba Health released the world's first customized font enabling wheelchair users to easily navigate their journey. As of
"Wheelchair navigation"
with a "Braille-Chinese" conversion function and text phonetic March 31, 2023, the "wheelchair navigation" feature has provided
notation function, helping to improve the accessibility of Braille over 900,000 navigation services in six cities, including Beijing,

330,000
in several aspects including products packaging design and Shanghai, Hangzhou, Chengdu, Shenzhen, and Guangzhou.
Over artistic creations.

Content views of Youku Barrier-free Theater

"Compared to the hundreds of millions of users, a few "It’s worthwhile to have one tenth of the company's staff
thousand or a few hundred may seem like a small fraction. dedicated to serving a small subset of users to bring special
However, does a small number mean it is not significant? value to them! I hope that digital technology can facilitate
The development of product features is not solely everyone's life and our “Digital Braille” pathways will be
determined by commercial efficiency. While performance further broadened."
result matters, so does accountability. "
— Lei Jiang, Engineer of Ele.me APP
—Yuhang Yu, Engineer of Freshippo APP Youku Barrier-free Theater
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Ensuring a rich digital life for


senior citizens The senior mode of Taobao APP enabling Age-friendly adaption of Freshippo for better online and offline
senior citizens to shop online shopping experience
We strive to provide considerate, convenient, and
At the technical level, to help seniors shop with Taobao, the font size has By continuously optimizing the online and offline service processes, Freshippo strives to remove barriers for the
efficient intelligent services for senior citizens based
been enlarged and page design has been simplified, so that they can elderly to select products and pay money. The Freshippo APP has explored the innovative "1+8" age-friendly
on their actual needs. We have actively built an age- quickly understand page functions. Furthermore, a voice search function is online shopping system, designed "1" senior exclusive shopping channel named "assistant for seniors", and
friendly community where all our main APPs have added to avoid typing for search and clears the barrier for senior citizens to optimized “8” detailed experiences on age-friendly shopping such as the voice search function. In offline
launched a "senior mode" through age-friendly use the APP. stores, Freshippo staff guide seniors through the digital payment function of the Freshippo APP. Freshippo makes
innovation. Furthermore, we seek to transform and At the service level, the APP has also introduced a function that allows a cash payment option available for seniors to clear payment barriers. Furthermore, we have specially assigned
seniors to get direct communication with customer service personnel. “service ambassadors for seniors" in some stores, providing shopping guidance, checkout, pick up and after-
optimize the layout of retail premises based on the
Upon approval, Alibaba customer service personnel can help them solve sales services.
needs of seniors, aiming to provide them with more problems in a timely manner through remote assistance. In case of a
professional and considerate services. refund request rejection for a senior mode user, Alibaba will actively contact Amap's WeCare plan, facilitating the seniors in travelling
the user to assist in processing the refund, bringing a better after-sales
experience to them, and solving the problem of senior users who cannot find Amap has launched various features such as specialized taxi functions for seniors, the construction of nationwide

Over 3,300
Number of WeCare taxi
the customer service for returns. WeCare taxi assistance stations, the issuance of subsidies to assist seniors to seek medical care, and a volunteer
service that helps seniors address their travel difficulties. As of March 31, 2023, Amap has built over 3,300 WeCare
taxi assistance stations in 33 cities nationwide in China, with an increase of more than 2,000 stations, and has
assistance stations granted over RMB5 million of subsidies in total.
Senior Mode of Ele.me highlighting frequency
demands and offers considerate, reassuring,
and heartwarming services.
The Ele.me APP places commonly used scenarios by seniors, such as
food ordering, food purchase, supermarket, and medicine buying, in a
prominent area at the top section of its APP, which ensures easy access to
convenient services for seniors. The "Ordering Takeout" channel provides a
wide range of selected take-out food and beverages to satisfy their daily
demands for nutritious meals; the "Buying Vegetables" channel provides
various foods and ingredients to satisfy demand in multiple food choices
and categories such as meat, poultry, eggs and milk; the "Shopping in
Supermarket" channel provides a convenient and tailored daily shopping
experience based on the actual demands of seniors; and the featured
"Buying Medicines" channel provides fully qualified and strictly managed
drug purchasing services to satisfy the demands for drugs urgently needed
and commonly used.

Making food ordering, food purchasing, supermarket, and medicine buying more personalized, reassuring, and heartfelt
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Responsible consumption
Consumption promotes a better life, yet it is crucial to reduce
and eliminate the negative environmental and social impacts
brought about by the consumption process. Therefore, Alibaba
has intensified investment to remove the barrier for consumers
in practicing responsible consumption and guide them in
establishing responsible consumption habits.

Guiding and assisting users in transitioning Contributing to the creation of a healthy social
towards a green and low-carbon lifestyle consumption environment

Guiding consumers to bulid responsible consumption habits


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Guiding and assisting users in transitioning


towards a green and low-carbon lifestyle
Idle Fish contributing to a digital Alibaba developed 88 Carbon Reduction Day and
Digital platforms are radically reshaping the way that circular economy promoted consumers to reduce carbon emissions
consumers access information, products, and services. Every use of an idle item means reducing the consumption of new In November 2022, Alibaba launched the 88 Carbon Reduction Day, covering brand building,
It is possible to educate, motivate, inform, and support resources. Consumers can earn "carbon credits" and gain equity incentives consumer education and low-carbon consumption. Together with brand groups, we are building
consumers in making sustainable choices on a large from Carbon88 ledger platform through trading or recycling idle items on low-carbon consumption awareness and creating new exclusive scenarios for low-carbon
the Idle Fish platform. consumption. Currently, we have co-hosted the 88 Carbon Reduction Day with Shiseido and Yili
scale in innovative ways while making efforts to win the
respectively.
trust and understanding of consumers. Alibaba has built
a carbon ledger platform covering multiple consumption
scenarios, which enables consumers to get access to
information related to low-carbon products, facilitates them
in discovering and selecting more sustainable products and
services on the platform, and guides them in transitioning
towards green and low-carbon consumption behaviors.

Taking advantage of the rich business scenarios in Alibaba's


ecosystem, the Carbon88 ledger platform has unveiled
a decarbonization lifestyle for consumers across various
scenarios, from catering, travel, working and shopping,
to recycling. Based on the progressing decarbonization
measurement standard, we measure the decarbonization
actions of consumers in Alibaba's ecosystem platforms.
In addition, the Carbon88 ledger platform is driven by the
value of protecting the Earth, with an aim to encourage
users to develop low-carbon habits through incentives and
low-carbon themed activities. In FY2023, the Carbon88
ledger platform drove a total of 187 million users to practice
emission reduction.
For more details:
Please refer to Chapter 1 Engaging and enabling
decarbonization through our platform ecosystem P46

187 million
Number of users to practice Assisting to circular economy
emission reduction
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Contributing to the creation of


a healthy social consumption
environment
Search is an important tool for consumers to acquire In August 2022, the GreenNet Program was further
information, but it may be abused to spread illegal upgraded. After a minor registers an account with real
and harmful information. As an e-commerce name authentication, the minor online shopping mode is
platform, we have a special obligation to ensure our activated. In this mode, when a minor searches through the
platforms are not used in abusive ways. In recent Taobao APP for harmful content such as gaming account
years, we have gone from "blocking" to "educating", leasing and recharge, live streaming recharge, adult
to keep platform users safe from harm6. products, pesticides and veterinary drugs, alcohol products,
Taobao will purposely activate a layered protection mode
In November 2020, we worked with partners to in the product display and sales process by applying the
launch the public welfare GreenNet Program. As "no active recommendation", "invisible after search", or
of March 31, 2023, the GreenNet Program covered "visible but not available" modes. Furthermore, the search
multiple APPs including Taobao, Idle Fish, and Youku. and details pages of such products will be automatically
In FY2023, around 80 million harmful searches have guided to educational pages to motivate minors to
been automatically guided to educational pages. establish consumption habits beneficial to their physical
The program has covered five major areas, including and mental health.and personal information security.
safeguarding life and health, protection of wildlife,
protection of minors, personal and public safety, and
personal information security.

around 80 million
Around 80 million harmful searches have been
automatically guided to educational pages

From "blocking" to "teaching",


keeping platform users safe from harm

6 According to statistics, the number of abnormal searches flooding into Internet platforms reaches up to tens of billions every year. The keywords of these abnormal searches include wild
animals and plants, suicide products, game addiction, and criminality, which have the possibility of bringing high risks and negative impacts to society.
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Fueling small
businesses
Micro, small, and medium-sized enterprises (MSMEs) are responsible for the majority
of employment in society. They are often the most dynamic economic actors, but
also a group that is relatively vulnerable. As the world undergoes the dual digital
and green transformations, MSMEs are facing unique challenges in maintaining
competitiveness in technology, talents, market opportunities, and so on. As a platform
technology enterprise, Alibaba is committed to integrating digital technology and the
real economy to drive a more secure, efficient, and extensive digital transformation of
industries, providing more capabilities to MSMEs and enabling them to achieve their
own sustainable development in the new digital era. In this process, we can contribute
to the creation of large-scale and high-quality employment in society. While excelling
in our own role, we also strive to leverage the power of our digital platform to drive
and help MSMEs as much as possible to achieve sustainable development.

We provide continuous supports in the following four aspects:

● Developing responsible technologies P110


● Building markets, business capabilities and business ecology for MSMEs P117
● Creating and enabling inclusive employment P132
● Promoting responsible production P140
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Building markets, business capabilities and Enabling inclusive employment


business ecology for MSMEs

Over 47million Over 70 million Over 2.3 million


On Alibaba.com, over 0.2 million sellers across 190 countries
Alibaba's ecosystem has facilitated, directly or indirectly, DingTalk has helped 2.3 million person-times of trainees
and regions have sourced business opportunities from or
more than 70 million jobs. obtain digital manager certification
completed transactions with over 47 million buyers

Over 5 million Promoting responsible production


The digital ecosystem of DingTalk hosts a community of over
Fueling small businesses
14,000
3.8 million developers who have collectively developed over 5
million pieces of "low code" software Over
More than 14,000 suppliers have signed the Alibaba Supplier
2022 National Public Service ESG Code of Conduct with a year-over-year growth of 10%
Demonstration Platform for Small
and Medium Enterprises
DingTalk was awarded in the "2022 National Public Service
Over 1.91million
Taobao and Tmall have covered a total of 1.91 million Low-carbon
Demonstration Platform for Small and Medium Enterprises." Friendly products from 409 brands

Developing responsible technologies

Over 17,000 6.863 million MtCO2e First Highest


We hold more than 17,000 global patents, We have effectively enabled our clients to reduce We continue to be ranked first in open-source We are one of the cloud service providers with the highest
a year-over-year growth of over 20% 6.863 million MtCO2e of total emissions impact and activity among Chinese enterprises level of security and compliance in the Asia-Pacific region
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Developing responsible technologies


Technology has been the bedrock for Alibaba to get where
we are today and also guides us to a promising future. We
greatly value technology and innovation, and our pursuit of
technological advancement has never changed. We firmly
believe that advances in technology mean shouldering a
greater responsibility and creating greater values. Given this,
we believe that responsible technology should satisfy the
following characteristics.

High-performance and Environmentally- Inclusive and open Safe and trustworthy


cutting-edge technologies friendly technologies technologies technologies

Alibaba focuses on high-performance, cutting-edge and responsible technologies


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High-performance and Self-developed technologies


cutting-edge technologies We are advancing our focus from software innovation processor specifically designed and optimized for our
to collaborative innovations of software and hardware, self-developed operating system "Apsara". With a new
Products that use high-performance and cutting- primarily in continuous improvement in overall architecture, the processor, which is the core of CIPU,
edge technologies feature lower resource use and performance across multiple dimensions such as cloud speeds up computing, storage, and network resources,
are inherently environmentally-friendly. Pushing the products, system architecture, underlying hardware, resulting in an increase of over 20% in terms of overall
development of efficient and advanced technology and artificial intelligence. performance over the industry average.
is fundamental for fulfilling our social responsibility
and creating wider social values. To achieve this goal, As of March 31, 2023, Alibaba has held more than ● In terms of the underlying hardware, leveraging
we continue to intensify investment and research 17,000 global patents with a year-over-year growth of software and hardware co-design in cloud computing,
in two major areas that lead the industry forward: over 20%. We have over 10,000 global invention patents we have designed our own cloud computing chip,
self-developed technologies and cutting-edge granted in key fields that include cloud computing, "Yitian 710", which has been deployed on a large
technologies. artificial intelligence, big data technologies, and other scale in Alibaba Cloud’s data centers, resulting in a
digital strategic technologies. more than 30% improvement in computing power
Self-developed technologies cost-effectiveness and a 60% reduction in power
● In terms of our cloud service, we provide a variety consumption per unit of computing power.
Cutting-edge technologies of high-performance cloud products, including cloud
computing, databases, and data intelligence solutions, ● The milestone in artificial intelligence is that in
catering to our users around the world. Our elastic September 2022, Alibaba DAMO Academy introduced

Over 17,000
Number of global patents
computing capability covers millions of nodes, with the
ability to support 500,000 cores for elastic scheduling
the "Tongyi" series of large language models (LLMs),
creating the industry's first unified AI infrastructure. At
within 3 minutes. Our distributed cloud-native database, the 2022 Apsara Conference, Alibaba Cloud pioneered
PolarDB, offers computing capabilities that can scale the concept of "Model as a Service" (MaaS), aiming to

Over 10,000 up to over 1,000 cores with a storage capacity of up to


100TB. Alibaba Cloud has been recognized as a Magic
lower the barriers to AI development and application by
transforming AI models into readily available services.
CIPU system

Global invention patents granted in key Quadrant leader in cloud database management
fields that include cloud computing, artificial
intelligence, big data technologies, and other systems by Gartner for three consecutive years. Our
digital strategic technologies. integrated data intelligence computing platform, Major technical awards received by Alibaba Cloud in FY2023
ODPS, supports parallel computing across over 100,000 1
Forrester released the Q4 2022 Report , in which Alibaba Cloud was rated as a leader among 11 public cloud service providers
servers. It can handle a maximum daily data processing in China and awarded the highest score in terms of current product offerings and strategies.
scale of 2.79EB. The ODPS large-scale batch computing
Gartner released the 2022 Magic Quadrant for Global Cloud Database Management Systems report. Alibaba Cloud was
engine, MaxCompute, has topped the international
selected in the "LEADERS" quadrant for three consecutive years.
TPCx-BB benchmark list for six consecutive years.
The China Academy of Information and Communications Technology (CAICT) performed a serverless service capability
●In terms of system architecture, at the 2022 Apsara evaluation, in which Alibaba Cloud's PolarDB for MySQL and RDS MySQL were rated as "advanced" transactional databases
Conference, we released the CIPU, which is a dedicated with the highest serverless service capability. Alibaba Cloud builds the architecture core with the CIPU system

1 The Forrester Wave ™ Public Cloud Development and Infrastructure Platforms in China, Q4 2022.
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Fueling Small
Businesses

Cutting-edge technologies
We have continued to invest in the research of basic sciences and innovative technologies. In the previous year,
we published a number of original research papers and received several notable awards and recognitions.

Major awards in research of cutting-edge technologies


● In May 2022, Alibaba DAMO Academy's paper "Learning to Generalize to More: Continuous Semantic
Augmentation for Neural Machine Translation" was awarded the Distinguished Paper Award at the top
international AI conference ACL2022.
● In June 2022, AMiner announced the AI 2000 Most Influential List, in which Alibaba was ranked the world’s top

ten most influential network research institutions in terms of computer networks.


● In August 2022, the top global conference in data science, KDD 2022, awarded Alibaba DAMO Academy with

the Best Paper Award in the field of applied science for its paper "FederatedScope-GNN: Towards a Unified,
Comprehensive and Efficient Package for Federated Graph Learning".
● In December 2022, the Decision Intelligence Lab of Alibaba DAMO Academy won the championship in the

international competition for virtual power plants at the NeurIPS 2022 (Annual Conference on Neural Information
Processing Systems). The proposed AI solution for power dispatching, which innovatively integrates prediction
technology, optimization technology, and reinforcement learning, enabled the experimental project to reduce
carbon emissions by 13.6% and electricity bills by 28.2% without any change in electricity consumption.
● In May 2023, Apache Flink, a key focus of Alibaba Cloud, received the SIGMOD 2023 System Award. Additionally,

the research paper "Detecting Logic Bugs of Join Optimizations in DBMS" co-authored by Alibaba Cloud and
Zhejiang University won the Best Paper Award at SIGMOD 2023. This achievement marks the first research team
from the Chinese Mainland which has received the Best Paper Award at SIGMOD since the conference's inception
in 1975.

Alibaba insists on exploration of high-performance and cutting-edge technologies


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Environmentally-friendly Inclusive and Open technologies Technological development can


technologies be inherently inclusive
Alibaba Cloud provides digital
The availability and inclusion of cutting-edge
services for MSMEs
Clean computing is crucial for the cloud to technologies are the basis for the development In the past ten years, owing to our efforts in
Alibaba Cloud has been continuously launching a series
contribute positively to society, as well as an of MSMEs today. We continuously lower the technological innovation and growth in scale,
of empowering services to support the growth of MSMEs.
important pillar for further growth in computing technological threshold, promote the integration Alibaba Cloud has witnessed an 80% decrease in In September 2022, proactively responding to the call of
power and digital development. Global data centers of technology and business, and build an open computing power costs and nearly 90% decrease MIIT, Alibaba Cloud collaborated with over 100 ecosystem
have already grown to a considerable scale and technology ecosystem to share technological in storage costs, capable to provide accessible partners in launching an "MSME Digital Service Festival",
dividends with MSMEs. computing power for more MSMEs and developers. providing over 200 high-quality services and holding over
are still expanding, making more pressing the need
50 offline and online activities to support MSMEs for cloud-
for continued reductions in energy use and carbon based innovation. In April 2023, we introduced the "Feitian
emissions. We firmly believe that, by incorporating Technological development can be Commercialization improves the Free Trial Program" to help developers learn and grow
environmentally-friendly design and technologies inherently inclusive availability and affordability of
at this stage, we can obtain a greener development Technological empowerment: "Feitian Free Trial
technology

Program" provides free trials for 50 cloud products,


as well as build an effective system to assist our Commercialization improves the including ECS, PolarDB database, and Machine Learning
clients in achieving their green growth. In FY2023, availability and affordability of Tens of millions of MSMEs on e-commerce platforms PAI, for up to three months. It supports various application
our self-owned data centers saw a PUE reduction technology such as Taobao and Tmall have already been types such as online, big data, AI, and serverless
to 1.215, which remained the leading level in Asia. utilizing the efficient capabilities of our cloud development modes.
Alibaba Cloud clients have applied our cloud Enabling open access to technology, computing for their businesses. It can be said that ●Innovation and entrepreneurship platform:
solutions in replacing traditional locally deployed data, and business scenarios to the integration of cutting-edge technologies with the Alibaba Cloud serves as an all-in-one innovation
data centers, effectively helping clients reduce 6.863 facilitate inclusive development and businesses carried out by MSMEs on digital platforms and entrepreneurship platform for MSMEs and their
million MtCO2e of emissions. cutting-edge research of science is a major feature of the fusion between digital and entrepreneurs. It facilitates learning, growth, and
networking opportunities while connecting them
and technology real economies. In addition to our merchants, we
We have also extended green computing into the with innovative resources from Alibaba Cloud and its
have provided cloud computing services to more ecosystem partners so that MSMEs can seamlessly build
field of digital intelligence and invested heavily than 4 million clients worldwide. In the past year, and develop their businesses on the cloud.
in green AI and data intelligence to contribute we supported the better development of MSMEs via
to society's green transformation and efficient multiple methods such as discounts, free trials, and ● Facilitating channels and capital: we use platform
governance. providing platform-based industry opportunities and empowerment to integrate digital and real economies.
Leveraging the advantages of our platform and enterprise
financial resources. channels, we offer brand promotion and training services
For details, please refer to
Chapter 1 Greening our operations and value chain P33 to help MSMEs expand their markets. We also address the
digital financing needs of MSMEs by organizing online
and offline roadshows, facilitating connections with
financial institutions.
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Enabling open access to technology,


data, and business scenarios to
facilitate inclusive development and AI-model open-source community - ModelScope
cutting-edge research of science and The application of AI in industry has been challenging due installation, and deployment to usage to a few hours or even
technology to the high development threshold, high customization minutes, as opposed to several days in the past, as well as
requirements, and numerous models. To address these enabling online experience of model effects with zero code,
challenges in 2022, we proposed the concept of Model as a model-based reasoning with one-line code, as well as model
Development of open-source technology Service (MaaS) and collaborated with the CCF Opensource optimization and customization with ten-line code.
Development Committee (CCF ODC) in launching the AI-model
community ModelScope. We have made concentrated efforts ModelScope adheres to the principle of neutrality and
We have consistently believed in, promoted, and
with the first batch of partners, including Langboat, Zhipu AI openness, with its models compatible with mainstream
contributed to open-source technology and open (Beijing Knowledge Atlas), DP Technology, and other research AI frameworks, supporting multiple training and service
technology ecosystem. According to the China Open institutions, in structuring the first universal model exchange deployment methods, and available for independent
Source 2022 Annual Report, we continue to rank first platform in China. selection by users. With an aim of promoting large-scale AI
among Chinese enterprises in open source impact applications instead of making profit, ModelScope is open to
The first batch of models on ModelScope covers the major all developers and is governed by its executive committee.
and activity.
AI fields such as vision, voice, natural language processing,
and multimodal models. Of these, over one-third of them As of March 31, 2023, the ModelScope community has
Our four major areas of focus in open source include are Chinese-language models, including Tongyi large model accumulated nearly 800 models, serving over one million
cloud native software, AI big data, databases, series, Langboat’s Mengzi series, and Zhipu AI’s multi- users. The cumulative number of model downloads has
and operating systems. In FY2023, we launched language pre-training model. exceeded 16 million, showing significant progress in its
mission of reducing the barriers to wider AI development.
several major open-source projects, including
ModelScope has also provided a readily usable model usage
Kocoordinator, a specialized solution for application platform, thereby reducing the time from code download,
orchestration; Lowcode-engine, a low-code
framework; ModelScope, an open-source large
model platform; HavenAsk, a key product of Alibaba Apache Flink becomes the mainstream open-source framework and distributed
Search; and PolarDB-for-PostgreSQL, a cloud native processing engine in real-time computing
database. We have also continuously invested in
Apache Flink is a mainstream open-source big data real-time dashboards, risk control, and data lakes.
existing advantage projects such as Apache Flink, processing engine and a project of the Apache Software Utilizing Apache Flink to address real-time computing needs
Apache Dubbo, Apache RocketMQ, and Nacos. We Foundation. In 2019, Alibaba acquired Ververica, the has become the mainstream open-source framework and
hold the top position among Chinese enterprises in original company behind Flink, and became the biggest distributed processing engine in real-time computing.
terms of projects contributed to the Apache Software contributor to the Flink community. With its "streaming-batch Through continuous collaboration, over 100 companies
integration" technology, Apache Flink has been increasingly have contributed to the codebase, and Apache Flink has
Foundation. As of March 31, 2023, our self-developed
adopted by enterprises for various business scenarios, maintained its position as the most active project within the
open-source programs have accumulated a total of including underlying platform construction, real-time data Apache Software Foundation for three consecutive years.
over 1 million Stars on GitHub. warehousing, real-time recommendations, real-time analysis,
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Supporting open academic research


To support academic research and contribute to world business cases, technical issues, and data as and below. In 2022, we received nearly 500 valid ● In terms of promoting and advocating public
building an ecosystem for basic science research, well as assigning technical personnel to support applications from 135 colleges and universities participation, we have established a global
we have cooperated with top research institutions the collaborative research. In FY2023, we launched across China. These participating young scholars mathematics competition. This competition aims
at home and abroad to fund young scholars who multiple AIR scientific research collaborative were recommended by nearly 200 academicians, to bolster respect and love for basic sciences in
are engaged in cutting-edge exploration. We also projects with universities at home and aboard, 19 university presidents, and 2 Nobel laureates. society. Since the first competition in 2018, more than
launch and sponsor scientific activities to stimulate supported universities to work on technological Finally, 15 "DAMO Academy Young Fellows" were 180,000 competitors from six continents worldwide
public interest in scientific research and improve the breakthroughs in cutting-edge technologies such as shortlisted. They hail from fields including theoretical have registered to participate, and the level of
scientific literacy of the general public. carbon neutrality, large models, virtualization, and mathematics, quantum physics, biomedicine, public participation and internationalization sees
databases, and published our world-class scientific chemical materials, software security, End-Edge- consistent improvement. In 2022, a total of 55,028
● We have established the Alibaba Innovative research achievements. Cloud (EEC) collaborative intelligence, and third- participants from over 60 countries worldwide
Research (AIR) Program to further research generation semiconductors, and are engaged in registered for participation, hitting a record high. The
collaboration with leading universities. The AIR ● In terms of encouraging young scholars in their multiple major researches ranging all the way from competition steering committee consists of a total of
aims to promote the production of world-class cutting-edge explorations, we have established the macro universe to microscopic worlds. 15 top experts from seven countries in Asia, Europe,
academic achievements by granting university the DAMO Academy Young Fellows to identify and North America. Among the finalists, overseas
researchers open access to Alibaba's own real- and support young Chinese scholars aged 35 competitors accounted for 26%.

2022 "DAMO Academy Young Fellows" Alibaba global mathematics competition


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Safe and trustworthy technologies Privacy protection and data Safeguarding science and Optimizing and improving
security technology ethics client service
In order to help the development of society,
technology must first be trusted and supported by Alibaba Cloud is committed to strengthening its Technology needs to be responsible and accountable We have established the Chief Client Office to
all parties. We are committed to creating safe and compliance system in the global business landscape. in order to gain the trust of society. In FY2023, we ensure an excellent client experience and assist
trustworthy technologies from three perspectives As one of the cloud service providers at the highest established the Alibaba Science and Technology clients in realizing business values through
- privacy protection and data security, science and level of security and compliance in the Asia-Pacific Ethics Governance Committee, and formulated six professional and standardized service. As of March
technology ethics, and reliable client service. region, we continuously strive to enhance the basic principles - people-orientation, inclusion and 31, 2023, we have served more than 4 million
performance of our cloud platform, earning over integrity, privacy protection, security and reliability, clients from over 200 countries. We provide clients
Privacy protection and data security 130 global security and compliance certifications. credibility and controllability, and openness and with pre-sales consultations and 24/7 after-sales
With this effort, we enable our cloud clients and co-governance, marking a further upgrade in our services by multiple means including phone calls,
Safeguarding science and organizations to efficiently meet the security governance of science and technology ethics. online service, work orders, and DingTalk. We have
technology ethics and compliance requirements of their respective made efforts to optimize our response speed and
For more details,
regions and industries. Furthermore, our overall please refer to Chapter 7 Science and technology ethics P204
ensure service quality through our professional
Optimizing and improving client security capabilities have been highly recognized service system and platform. We have also built
service by international authoritative analysis firms such as proactive service capabilities through intelligent
Gartner, Forrester, and IDC. monitoring and risk warnings to alert clients,
facilitating client understanding of risk mitigation
As of the reporting date,Alibaba Cloud has been strategies and optimization recommendations.
recognized with the highest tier of cybersecurity Notably, we attach great importance to protecting
certification Cyber Trust Mark (lately developed by clients' rights and interests and have established
the Cyber Security Agency of Singapore), verified a reporting center and complaint portal on
with the second-tier certification of EU Cloud Code our website to receive client complaints, track
of Conduct (in compliance with GDPR requirements) service progress, and promote product and user
by Summit for Clinical Trials Operations Executives experience optimization.
Europe (SCOPE Europe), granted the highest
Titanium Award for Digital and Trustworthy Cloud
(by the British Standards Institution), and certified by
international privacy protection standards, including
ISO/IEC27701:2019, ISO/IEC29151:2017, ISO/IEC
27018:2019, ISO/IEC27799:2016, BS10012:2017 and
TRUSTe.

For more details,


please refer to Chapter 7 Privacy protection and data security P200 Alibaba continuously enhances the security and
compliance levels of cloud platform
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Building markets, business capabilities and business


ecology for MSMEs
Through multiple forms of digital platforms, we have provided development opportunities,
we have pooled and served tens of millions of enabled basic digital business capabilities,
MSMEs. In particular, Taobao and Tmall are the and established a supportive digital business
leading e-commerce platforms in the world, environment for MSMEs, with the mission to
while DingTalk is a leading organizational “make it easy to do business anywhere”.
collaborative office and application
development platform for MSMEs. By means of
technological innovation and inclusive services, Bringing development opportunities Enhancing digital business Creating a favorable digital
to MSMEs by connecting them to capabilities for MSMEs business environment with
various markets MSMEs

Building markets, business capabilities and business ecology for MSMEs


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Bringing development Connecting the domestic large market


opportunities to MSMEs by
connecting them to various markets Our digital platforms, including Taobao, 1688, and Ele.me, Our merchants have diverse backgrounds, including those carrying on traditional
have founded a business and lifestyle ecosystem for millions culture, and recent graduates seeking to build their novel business ideas. In 2022,
Our platforms feature extensive connectivity. We help of MSMEs and billions of consumers. This ecosystem makes the number of handicraft shops on Taobao exceeded 30,000, with over a half
connect MSMEs to various consumer markets so that small merchants and their niche products visible to the operated by women2. The number of recent college graduates who have opened
they can leverage their capabilities and seize more market, creating growth opportunities for countless MSMEs. stores on Taobao has stood at 510,000, including 71.4% from rural areas3.
opportunities for growth and development.

Connecting the domestic


large market

Promoting interconnection
of the global market

Bringing development opportunities to MSMEs by connecting them to various markets

2 Data source: 2022 Intangible Cultural Heritage Consumption Innovation Report.


3 Data source: 2022 Research Report on College Student Employment and Entrepreneurship in E-commerce Platforms. Recent college graduates refer to college students who have graduated for less than two years.
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E-commerce assists in high-quality development of "intangible cultural heritage" Taobao store owners join hands with embroidery craftswomen to revive "Miao Embroidery"

Intangible cultural heritage (hereinafter referred to as "ICH") By cooperating with local governments and ICH protection In 2014, Danqing Wang, a craftswoman born in the 1980s, remote areas can earn money and support their families
carries the weight of our human civilization and reflects the centers, we have continued to provide e-commerce operation founded the “Wang's handcrafts” studio and a Taobao through their craftsmanship while carrying on time-honored
diversity of world cultures. Protecting and fostering ICH has training for ICH inheritors. Over the past three years, we have store, specializing in original embroidery products and traditional crafts. As of March 31, 2023, the number of Miao
profound significance for sustainable development. At the organized nearly 400 online craftsmen marketing events to aiming to revive traditional craftsmanship. Propelled by minority embroidery craftswomen has increased from just
end of 2019, leveraging the many advantages of e-commerce improve the exposure of and attract the right traffic to their Taobao's large network and amplification, she soon faced over 20 to about 5,000 across China. A large number of
platforms, we launched the Taobao Craftsmen Program, Taobao stores. In addition to setting up ICH and craftsmen challenges to meet rapidly rising orders, with the initial folk master-hands have become "product and technology
hoping to assist handicraft merchants represented by ICH zones at the annual Taobao Maker Festival, we have also business model relying on single craftsmen for the design, partners", thereby inheriting the ancient craftsmanship and
inheritors and craftsmen in improving their online business hosted offline fairs and exhibitions for Taobao craftsmen in embroidery, and order-based production. In 2015, she creating modern urban trends.
capabilities, enhancing their exposure in the consumer multiple cities, so that more consumers can get to know and decided to establish handicraft bases in provinces such as
market, and achieving faster development and growth. understand these craftsmen, their art, and the culture behind it. Guizhou, Yunnan, and Sichuan, so that craftsmen living in

Intangible cultural heritage: Black pottery pot Wang Danqing directs artisan in Kaili Tangzhai village to produce handicrafts
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Promoting interconnection of
the global market
Strengthening trade cooperation in Africa to help MSMEs sell globally
We strive to assist enterprises in achieving We launched the electronic World Trade Platform (eWTP) initiative in At the end of 2019, the Ethiopian government signed an overall framework agreement with Alibaba
interconnection of global markets from three aspects: 2016, with the aim of promoting more convenient, innovative, and for cooperation on eWTP. In 2021, the first batch of three local coffee brands from Ethiopia debuted
helping global merchants do business worldwide, inclusive global trade through digital technology and cross-border on Tmall Global. In mid-August 2022, we expanded the cooperation to cover upstream players. We
assisting China’s MSMEs in going global, and bringing roasted coffee beans from specific regions in Ethiopia according to the taste preferences of Chinese
cooperation. eWTP has collaborated with participating countries and local
consumers and directly launched them in X Membership Stores of Freshippo. This cooperation not
local opportunities to MSMEs around the world. governments in actively promoting development and exploring new rules only enabled consumers to enjoy fresh and high-quality coffee beans at a price about 30% cheaper
for digital trade via new business practices. eWTP has also joined hands than the market average, but also increased the income of coffee farmers by 30% with the reduction
Assisting in global cross-border e-commerce with a number of key global partners in promoting digital commerce, of middlemen. In December 2022, Tmall Global also launched three customized Ethiopian coffee
improving digital logistics networks, building public service platforms, and products to further expand its exports.In March 2023, under the eWTP partnership with Rwanda,
Alibaba.com, a B2B digital trading services platform, cultivating digital talent. As of March 31, 2023, eWTP has accomplished 10 Alibaba.com and the Rwanda Development Board (RDB) officially signed a contract to support
was the first business sector of Alibaba Group. It is cooperation pilot programs in 7 countries.
MSMEs in Rwanda (mainly in the coffee and tea industries) to export globally. Alibaba.com will
provide comprehensive e-commerce operation guidance to help MSMEs in Rwanda set up online
committed to making it easier to connect commerce
stores, identify suitable products, and optimize store operations.
around the world, thereby assisting more MSMEs to
face the challenging global market much easier, safer,
and steadier with new technologies and enabling
digital business to go global and develop in a higher
standard.
In FY2023, on Alibaba.com, over 0.2 million sellers
across 190 countries and regions sourced business
opportunities from or completed transactions with
over 47 million buyers.

Uzbekistan-based enterprises sell products


worldwide through digital trade

In July 2021, Alibaba.com partnered with the Agency for


Thailand's first digital free trade hub improves the cross-border
the Promotion of Export of the Ministry of Investment
and Foreign Trade of Uzbekistan (MIFT) to provide the
e-commerce efficiency
"Global Gold Suppliers" service and assist Uzbekistan On December 8, 2022, the first digital free trade service platform in Thailand further supports
enterprises on our platforms in expanding to the global hub (eWTP Thailand Duty-Free Zone) jointly real-time supervision over the entire process
online market. As of March 31, 2023, 78 enterprises from built by eWTP and Thailand was launched for in Thai Customs, ensuring the traceability,
Uzbekistan have opened stores on Alibaba.com, covering trial operation. By leveraging digital means integrity, and safety of goods. The cross-border
many categories such as textiles, furniture, clothing, such as real-time positioning of electronic locks e-commerce fulfillment time between the two
children's toys, and agricultural products. and fully paperless processes, the eWTP public countries falls from 10 days to 3 days.
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Assisting Chinese MSMEs in "going global" via digital means

We have been committed to helping MSMEs sell efficient multimodal transportation choices for Alibaba.com launches a special initiative,
Digital Trade Show
products overseas and making it easier for them to China’s MSMEs engaged in foreign trade.
access the vast global market. Alibaba.com helps At the end of 2022, Alibaba.com launched a special
accurately match the business demands of cross- Alibaba.com Pay, a cross-border financial services initiative, the "Digital Trade Show". This is launched to
border buyers and sellers and provides digital tool, ensures safe and convenient payment of assist foreign trade enterprises in efficiently extending
marketing, transaction, financial, and supply chain cross-border funds using digital technology. their footprints to overseas markets such as the US,
Germany, the UK, Japan, Australia, Turkey, India,
services. Known as a "magic weapon" for cross-border
Brazil, and Dubai in a low-cost manner through the
payment among merchants, it provides cross-border linkage of physical and online digital exhibitions. As
In FY2023, Alibaba.com upgraded its comprehensive trade merchants with one-click online registration, of March 31, 2023, Alibaba.com has launched a total
digital service solution covering the full-link foreign allowing them to enjoy the service of receiving funds of 11 Digital Trade Shows, attracting 20,000 small and
trade from transaction to delivery and after-sales on the same day of registration and completing medium sized foreign trade merchants.
services, with a focus on improving and upgrading transfers to their account within 4 hours for cash-out
Alibaba.com launches a special action - Digital Trade Show
key areas of foreign trade services such as cross- in RMB.
border logistics, cross-border payment, and foreign
We have also provided merchants with a variety of basic tools, services, and training to assist MSMEs in
trade working desk, further assisting merchants in OKKI, the intelligent workspace for foreign trade
addressing problems such as difficulty in comprehending complex rules for international trade and lack of
reducing costs and increasing efficiency. businesses, not only helps merchants acquire
trade talents.
customers but also leverages intelligent technology
Alibaba.com Logistics, a digital cross-border B2B to assist businesses in scientific management,
logistics service provider, integrates previously including customer management and data analysis. eWTP public service platform assists MSMEs in compliance and risk management
dispersed transportation capacities into a one-stop It aims to simplify the management of foreign trade
Alibaba’s eWTP public service platform, as a digital public service platform for bilateral and multilateral trade, features an important
visualized logistics solution and makes it available business and make it more efficient.
function of providing MSMEs with cross-border trade services (e.g., digital customs clearance, smart tax rules, digital compliance,
for use by the entire industry. It has integrated more digital classification) and legal risk consultation through various trading links. In FY2023, a series of tools and services in this regard
than 26,000 dedicated transportation lines to provide were launched.

● On July 8, 2022, an RCEP (Regional Comprehensive Economic Partnership) tariff query tool was launched to allow MSMEs to
inquire online about tariff rates, most favorable tax rates, and regulations of China and other RCEP member countries, thereby
providing references for commodity exports and effectively improving the ability and efficiency of MSMEs in policy interpretations.

● On October 18, 2022, a compliance query tool was launched to enable enterprises to independently inquire about regulatory
requirements, detailed standards, and recommendations of compliance service providers related to export commodities, thereby
reducing the compliance cost and risk for MSMEs in cross-border trade.

● In January 2023, Alibaba integrated high-quality legal resources based on compliance platforms to provide inclusive services for
MSMEs to help them respond to overseas litigation in the complex international trade environment.
Alibaba assists Chinese MSMEs in "going global" via digital means
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Boosting local prosperity of global MSMEs

China continues to lead in the digital economy gaming, health, agriculture and so on. Since 2017, Lazada promotes the development
development in terms of scale and business model AGI has trained over 140 public officials and nearly of local manufacturers
innovations, providing extensive experience for other 4,000 entrepreneurs from over 60 countries and
To restore the community economy and raise the
regions around the world, particularly emerging regions in Asia, Africa, Latin America, and Europe.
awareness of Singaporean consumers over local
and developing economies in digitalizing their It also covers over 2,000 teachers from overseas manufacturers, Lazada's online supermarket
economies, including e-commerce development. universities and more than 40,000 young students RedMart has collaborated with 19 local food
from 16 countries, such as Rwanda, Ethiopia, and manufacturers and farmers in Singapore to produce
In 2017, Alibaba launched the Alibaba Global Pakistan. and sell a variety of local agricultural products and
delicacies. Nearly 30% of private brand products on
Initiatives (AGI). The program aims to inspire
RedMart are sourced locally. and all of these locally
entrepreneurs, youth, and women worldwide by In FY2023, we further launched the Cross-Border manufactured products are free from preservatives.
sharing experiences and practical examples from Brand Manager Qualification Certification and Cross- These collaborations, which prioritize local products,
China's digital economy development, fostering Border E-commerce Talent Training Courses to help develop local economies by matching more
digital talents, and promoting inclusive trade. Most cultivate talents for the globalization of MSMEs, thus demand in a region with local manufacturers.

of the registrants are founders of MSMEs from fields contributing to a more inclusive globalization of the
including e-commerce, e-payment, logistics, online digital economy.
Lazada collaborated with local food manufacturers in Singapore

Lazada supports novice sellers with


the assistance of experienced sellers

In terms of operations, merchants are exposed


to various challenges from technology issues to
marketing, which are particularly pronounced for
new merchants. In this regard, Lazada launched
the"Buddy Mentorship Program", which matches
new and inexperienced sellers with professional
and experienced sellers for peer-to-peer learning.
As of March 31, 2023, the program has covered over
10,000 seller communities and has successfully
supported over 1,000 selected sellers. With the help
of more than 200 volunteer mentors from Indonesia,
Vietnam, and Thailand, sellers involved in this
program have achieved a GMV growth of over 60%
and order growth of up to 50%.
Lazada supports novice sellers with the assistance of experienced sellers

Alibaba Global Initiatives (AGI)


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"Taobao Villages"in Malaysia

In 2019, Eddie Mok, who engaged in the a WiFi hotspot service offered by Measat
logistics and packaging business in Malaysia, Global and Alibaba Fulfillment Service, Mok
launched a "digital village" program to has been providing essential infrastructure
bring the "Taobao Village" model to rural services such as electricity, internet, and
areas in Malaysia after attending the logistics to remote rural areas in Malaysia,
"Alibaba Entrepreneurs Support Program" in enabling residents in these areas to access
Hangzhou City, China. goods and services similar to those in urban
areas. Currently, the services cover a total of
As an initial step, Eddie Mok established 489 rural villages, benefiting over 120,000
a company named Parcel365, deploying people.
intelligent parcel lockers in local villages
and cooperating with the local government In January 2023, Parcel365 partnered
to develop delivery services to nine states with Measat Global, a Malaysian satellite
in Malaysia, instructing rural residents communications operator, in launching a
to purchase through e-commerce, and "Digital Village 365" program, to enrich digital
cultivating strong consumer demand. Later, economic activities in rural areas and low-
Mok established Shopla365 and collaborated income households through access to high-
with Lazada and other platforms to sell rural speed bandwidth. Parcel365 and Shopla365
agricultural products to Malaysian cities also provide logistics and e-commerce
and even overseas. To cultivate more rural platform services as well as training
e-commerce talents, Mok launched Edu365 courses at locations designated by Measat
to deliver e-commerce knowledge to local Global, to help rural residents overcome
farmers. the unavailability of suitable parcel pick-up
addresses in remote villages and unleash the
In the previous year, Eddie Mok continued potential of the rural digital economy.
his efforts in rural revitalization in Malaysia.
Through a partnership with ConnectMe Now,

More than 90% of all what I do in Malaysia today is duplicated from the Taobao Village model of China.
- Eddie Mok

Eddie Mok brings the digital economy to rural areas in Malaysia


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Enhancing digital business Digital business operations Improving digital business tools
capabilities for MSMEs
Focusing on the operational needs of enterprises, On Taobao and Tmall platforms, Alibaba has joined and sales management, anytime and anywhere. In
While creating market opportunities for MSMEs, Alibaba endeavors to assist MSMEs in enhancing hands with third-party ecosystem partners to provide FY2023, over 10 million active merchants managed
Alibaba also provides a series of digital tools their comprehensive capabilities of operating MSMEs with a number of enterprise services on their stores through Qianniu. Alibaba continuously
and services to assist MSMEs in their operations digital business in three major areas: digital digital intelligence including software, content, and upgrades business tools and services for merchants,
and development. Alibaba provides training and business tools, digital supply chain capabilities, supply chains. With the Qianniu digital management strengthening the building of mobile business
learning opportunities needed for digital business and localized services. platform, Alibaba provides merchants with a one- capabilities and making the merchant experience
to facilitate the digital transformation of MSMEs stop platform that enables them to leverage a better and easier.
into the fast lane. series of digital business tools, including product

Digital business operations

Digital intelligence business


decision-making

Digital intelligence collaboration


and management

Digital business skills training


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Enhancing digital supply chain capabilities Improving localized services to promote digital transformation of industrial belts

MSMEs are often in need of improved supply chain MSMEs on Taobao, Douyin, and Kuaishou in direct For the vast number of MSMEs, e-commerce As of March 31, 2023, 1688.com has collaborated
capabilities to address problems such as limited connection to manufacturers with ample supplies. operations are a foreign and extremely challenging with third-party service partners totaling 15,000
access to high-quality goods and lack of guarantee This model can help MSMEs get access to high- area. Therefore, we have established an industrial on-site service personnel, to provide personalized
in supply chain service. In FY2023, the Qianniu quality products, start a business easily, and reduce service team to provide on-site services to services to MSMEs.
merchant platform progressively provided MSMEs the unit item shelf time from one hour to just a few assist in discovering e-commerce opportunities.
with free access to its "Select Product Sources" seconds, greatly improving business efficiency. As
service, which allows merchants to quickly identify of March 31, 2023, a total of more than 200,000
capable suppliers and get the goods onto their own suppliers have been able to provide the "drop-
shelves with one click. shipping" service to deliver goods within 48 hours
and accept 7-day returns for no reason, receiving
Through the digital platform 1688.com, Alibaba over 110 million transaction orders.
launched the "drop-shipping" model to assist

“Drop-shipping focuses on small sellers and new start-up sellers, who lack financial or product selection skills.
Through distribution, we help more small sellers reduce the risk of such entrepreneurship.”

——Yong Zhang, General Manager of Shenzhen Skymoi Technology Co., Ltd.

Merchants are in need of providing customized and provides online typesetting tools, making
and flexible supply chain services to meet the customization requirements more intuitive. The
increasingly personalized consumer demand. In "Flash Customization" service has achieved
2022, 1688.com launched the "Flash Customization" customized production within one hour and
service to allow MSMEs to enjoy fast and convenient shipment within seven days. As of March 31, 2023,
custom services without changing production 420,000 factories have participated in providing
molds and processing systems in factories. The customized services, covering multiple industries,
platform enables recordable customization needs and achieving nearly 10 million orders in FY2023.

Alibaba helps the digital transformation of industrial belts


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Digital intelligence business decision-making


Quick BI empowers businesses with
In the development of the digital economy, data In order to provide intelligent business services to a efficient decision-making analysis
intelligence, as a new factor of production, has wider range of businesses, in FY2023, we officially Data analysis serves as a crucial foundation for business
emerged on a larger scale and is being increasingly, launched our digital intelligence brand "Lingyang", management decisions, and Quick BI helps businesses
efficiently, and intelligently applied to socioeconomic which has introduced and upgraded the DAAS quickly build analytical systems through intelligent data
activities, making the level of digital intelligence system (Data+Analytics+Applications+Success). analysis and visualization capabilities. It enables seamless
in decision-making ever so crucial for MSMEs Lingyang's product matrix includes digital intelligent data flow within the organization and maximizes the value
of data. Quick BI has been selected into the Gartner Analytics
participating in the digital business market. database construction and governance product and Business Intelligence (Gartner ABI) Magic Quadrant for
named Dataphin, data visualization and analytics four consecutive years and has jumped to the Challengers
In 2014, Alibaba launched the e-commerce analytics tools Quick BI, Business Advisory services, consumer quadrant in 2023.
package Business Advisor to provide merchants with operation and growth tool Quick Audience,
smart analysis of business, market, and competitive enterprise resource management with Lingyang ERP,
"The task of developing report views that used to take
landscape as well as online tutoring and training, so and omnichannel intelligent service software Quick two weeks can now be completed in just one day."
that merchants can more effectively manage their Service. These products cover the entire business - Guojin Huang, Head of the Zibuyu Data Team at a
stores based on data. As of March 31, 2023, Alibaba operation cycle from pre-sales to after-sales, aiming cross-border E-commerce Company.
performed a comprehensive optimization of the to empower businesses with easier data utilization,
Business Advisor package, which has been utilized data-driven insights, and data-based decision-making.
by around 6.5 million merchants, to make core data
clearer and structures simpler, to make the tool easier Business consultant facilitates
to understand while increasing its speed, resulting enterprise development in multi-
in an increase in merchant satisfaction with Business platform and multi-channel operations
Advisor compare to the previous year. Alibaba has With the development of e-commerce, merchants are not
By taking the Business Advisor examination, I have
also introduced a data insight service "Intelligent restricted to a mono-platform way of operating. Instead,
acquired a new understanding of how to run a cross-platform, multi-channel, and multi-shop data
Diagnosis" for MSMEs, so that they can automatically qualified and profitable store and realized that my analysis become essential in business.On the basis of
transform complex data analytics into easy-to- previous operation path is too inflexible and I was Business Advisor, Lingyang has launched an omnichannel
understand interpretations and suggestions, for use far away from a qualified or excellent operator. business analysis product - Business Consultant, which is
as a basis for business decision-making. In FY2023, an intelligent one-stop strategic analysis, decision-making,
— Tmall Home Furnishing Category Seller
nearly 3 million merchants have used the Intelligent and action data platform for multi-channel merchants,
Langsheng Home Furnishing Franchise Store facilitating the increase of all-channel operation efficiency.
Diagnosis service.
Alaniz, focusing on the tableware business, says Business
Alibaba launched free training courses on "Business Consultant is much more accurate than manual labor in
Advisor". As of March 31, 2023, a total of over 66,000 terms of the data crawling dimension, which saves a lot of
participants have obtained the skills certification time and brings great help in data integration.
of "Business Advisor" through online training and
examinations.
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Digital intelligence collaboration and management

Digital technology profoundly changes the economic and of assisting MSMEs in developing business systems such as office collaboration products in China. DingTalk has also obtained the security audit reports of SOC2 TYPE II and
social landscape, driving the deepening and solidification collaborative office, intelligent HR, ERP, equipment management, SOC3, with a focus on security, confidentiality, and privacy, issued by PricewaterhouseCoopers International
of digital industrialization and the rapid advancement project management, and procurement management in a Limited (PwC). In November 2022, DingTalk obtained the Excellence Level Security Certificate for Office Instant
of industrial digitization. MSMEs often face challenges in more cost-effective and flexible way by virtue of rich API, open Communication Software of the "Foundation Program" of CAICT.
terms of talents, funding, technology, and management, interfaces, and system integration connectors, significantly
and are exposed to various difficulties and pain points in reducing the technical and financial thresholds of enterprise
digital operations. Alibaba is always striving to find new digital transformation.
ways to assist MSMEs in improving operational efficiency AI Intelligent Creation Assistant
on a large scale while at lower costs. DingTalk is currently undergoing intelligentization upgrades, and
it will integrate large-scale models such as "Tongyi Qianwen" to
Alibaba has been continuously innovating technological achieve comprehensive intelligence in instant messaging (IM),
and commercial solutions through cloud and DingTalk. document management, low-code development, audio-video
DingTalk has established a globally leading digital communication, and more, aiming to assist various industries in
ecosystem based on "PaaS (Platform as a Service) achieving rapid digital intelligence upgrade.
platform, SaaS (Software as a Service) ecosystem, and As of March 31, 2023, DingTalk has attracted a total of 600 million
low-code tools". As of March 31, 2023, it has offered over users, including more than 23 million enterprise users. Most of the
1,500 SaaS applications, with over 3.8 million developers enterprise users are MSMEs. DingTalk and its ecosystem partners
and over 5 million pieces of "low code" software developed have extended services to a broad range of 20 nationally
based on DingTalk. recognized industries, such as government affairs, education,
Based on this digital ecosystem, DingTalk is capable manufacturing, healthcare, Internet, retail sales, and logistics, in
135 cities. DingTalk is awarded the "2022 National Public Service

3.8
Demonstration Platform for Small and Medium Enterprises,"
Over million approved by the General Office of MIIT.
Number of developers in DingTalk
ecosystem Ding Talk launches AI Intelligent Creation Assistant
Safety and reliability are essential to guarantee digital
transformation. DingTalk attaches great importance to the

Over 5 million
"Low Code" software developed by DingTalk
information security of the enterprises on its platform and
continues to invest in security technologies and mechanism
KAKA Intelligent Manufacturing – a "small, fast, light and accurate" solution
DingTalk, in collaboration with its ecosystem partner Anekaka, has launched a solution called Kaka Intelligent
design. DingTalk has obtained over 15 security compliance Manufacturing based on the DingTalk low-code platform Yida for manufacturing enterprises. With the help of
qualifications, including Level III network security protection DingTalk’s application Intelligent Manufacturing Ding, KAKA Intelligent Manufacturing focuses on core functions such
NaNational Public Service Demonstration certification from the Ministry of Public Security, certification as orders, scheduling, materials, production, quality inspection, and equipment in manufacturing factories while
Platform for Small and Medium Enterprises solving problems such as difficulty in data statistics, opaque processes, and data silos in manufacturing management
by the ISO 20000 information service management system,
and production processes. With an aim to achieve visualized and transparent data, KAKA Intelligent Manufacturing
National Public Service Demonstration Platform certification by the ISO 27001 information security management
DingTalk is awarded the "2022 National Public Service has assisted factories in shortening production cycles by 35%, reducing defective rates and costs by 25%, improving
Demonstration Platform for Small and Medium Enterprises" system, and enterprise-level SaaS certification of trusted cloud, employee productivity by over 20%, and tripling the efficiency of production data aggregation and analysis.
making it one of the most authoritative and compliant enterprise
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Digital business skills training

For their digital transformation, MSMEs require not


only tools but also workers who can make the best
use of digital tools and entrepreneurs with a digital
management mindset. In addition to providing
free e-commerce courses for our e-commerce
platform-settled MSMEs, Alibaba has established
a "Cloud Class" to provide more enterprises with
a learning platform for internal digitization and
solve the problem of talent development under
digital operations and management. For MSMEs
in underdeveloped areas and regions worldwide,
Alibaba also offers specialized offline courses to
support innovations and entrepreneurship.

live streaming course training


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Creating a favorable digital Reducing the operating costs of digital business


business environment with MSMEs
We maintain a long-term approach and delivery, marketing, and data. During Alibaba pays attention to business challenges that affect new merchants
Alibaba’s first step to serve MSMEs is to provide understand that platform operations the COVID-19 pandemic, Alibaba took on our platforms. In FY2023, by taking measures such as optimizing
market opportunities and basic digital capabilities. can have a direct impact on the overall proactive exemptions from liabilities and algorithms, enhancing service-oriented products including specialized
However, the ability to assist MSMEs in achieving business ecosystem, thereby influencing zero-threshold reporting for logistics support stations, and implementing special support plans, Alibaba
long-term healthy development also depends various stakeholders within the ecosystem. abnormalities and shortened the review provided new merchants with services more in line with their needs,
on proper governance of the digital business Particularly in FY2023, when the time for proactive reporting by merchants lowering the relevant business thresholds.
ecosystem. In FY2023, Alibaba continued to reduce macroeconomic environment presents from an average of 24 hours to instant
the operating costs of digital business while significant challenges, we prioritize approval. In FY2023, Alibaba provided
intensifying efforts to protect intellectual property supporting cost reduction and efficiency exemption-from-liability protection for over Taobao launches a new phase of the "Million
rights and promote innovations in the platform improvement for MSMEs, taking measures 2.7 billion orders. New Merchants Plan"
ecosystem. covering areas like commodities, orders, Taobao launches a new phase of the "Million New Merchants Plan" for merchants
that settled on its platform between March 1 and March 31, 2023. In addition
to exempting new merchants from paying deposits when opening stores, this
Reducing the operating costs of
plan grants newcomer traffic vouchers to assist them in jumpstarting their first
digital business transaction. Cainiao Guoguo also provides convenient door-to-door pickup
services for merchants for their first transaction. For new merchants with no
Intellectual property protection experience, this plan provides "butler-style" guidance services, such as 30-day
business guidance by Xiaoer and a simplified version of the Qianniu workbench.
For new merchants with certain business capabilities, this plan provides 90-day
free access to service market tools. With the growth of their business, this plan
provides different incentive benefits for merchants at different stages, including
a free trial of the intelligent decision-making tool "Business Advisor" and live
streaming traffic vouchers to assist them in continuing growth.

Taobao guides new merchants to smoothly start operating new stores


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Intellectual property protection

Protecting intellectual property (IP) is critical to protect innovations. In FY2023, Alibaba continued to upgrade our IP
protection framework, made use of digital technology to assist MSMEs in cultivating IP protection and compliance
awareness, and collaborated with colleges and universities to educate new generation IP talents.

Continuously upgrading the IP protection Protecting business innovations through


framework technological innovations Alibaba Original Designs Protection Platform
Alibaba is committed to protecting its own IP rights and To cope with more complex and emerging 4
Alibaba Original Designs Protection Platform provided a full-chain solution, including
the rights of MSMEs on Alibaba platforms. Alibaba acts on infringement scenarios, Alibaba continues to filing, right safeguarding, and authorizing, for original images, short videos, and creative
designs launched by merchants. Using AI technology, the ODP platform indexed massive
this commitment by building and continuously optimizing enhance capabilities in our fraud identification
product contents across Alibaba platforms to facilitate efficient and accurate detection
the soundest complaint system within the industry, technologies. In FY2023, Alibaba achieved significant and quick removal of infringing content. Applying image and short video watermarking
and subdividing and improving multiple mechanisms, progress in technologies such as original image technology, Alibaba affixed watermarks on original images and short videos, allowing
including the Alibaba Intellectual Property Protection recognition, accurate photo matching, and image one-click right safeguarding in case of infringement. As of March 31, 2023, the ODP
Platform (IPP platform), based on the personalized and short video watermarking. Through algorithmic platform has triggered protection for over 860 million images and over 610,000 design
manuscripts.
demands of complainants. As of March 31, 2023, there learning of manual authentication experiences on
have been over 650,000 IP rights holders registered on trademark certificates, enterprise business licenses,
the IPP platform. With the increasing number of IP rights
holders, Alibaba has continued to improve protection
and authorization letters and in conjunction with the
imaging property of certificates and the abnormal
Over 860 million
Triggered protection for images
Over 610 thousand
Triggered protection for design manuscripts
efficiency. In FY2023, over 98% of IP complaints were trace features introduced by image forgery, Alibaba
processed within 24 hours. In 2020, Alibaba launched the originated voucher authentication technologies
online IP right safeguarding program, Simp'Ali, which has to identify fraudulent behaviors such as voucher
witnessed more than 700 online accounts from MSMEs as tampering and certificate forgery.
of March 31, 2023. This plan not only provides simplified
IP protection tools for MSMEs but also offers a quick and
convenient approach to solicit suggestions from MSMEs.
When MSMEs encounter IP protection issues, Alibaba will
provide timely and considerate services through multiple
forms such as outbound calls and emails.

Over 650 thousand


IP rights holders registered on the
Over 98 %
IP complaints were processed
IPP platform within 24 hours

Alibaba Original Designs Protection Platform

4 For details, please refer to https://yc.alibaba.com/#/


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Enhancing IP protection capabilities and Multi-party governance and


compliance awareness of merchants talent cultivation

Training and coaching represent another important IP Young Scholars Program


Alibaba Anti-Counterfeiting Alliance (AACA), which
preventive approach for IPR protection. By means of
has been established for six years, is the world's On World Intellectual Property Day on April 26, 2022, Alibaba joined hands with the Law School of Renmin University of
picture and text cases, short videos, live streaming,
first anti-counterfeiting alliance built upon an China to launch the "IP Young Scholars Program". Fudan University, China University of Political Science and Law, Zhejiang
and other forms, Alibaba conveys the concept of
e-commerce platform. It provides a new model of University, and other well-known colleges and universities are the first batch of members.
legal and compliant business to merchants, cultivates
multi-party governance to address the problems of
an innovative atmosphere and guides merchants Furthermore, Alibaba has collaborated with Tsinghua University to establish an IP talent scholarship program and jointly
counterfeits and infringements and has established launch the first "Network Economy and Intellectual Property Research" call-for-papers. Alibaba has also joined hands
to fulfill their social responsibility of respecting
extensive industry influence. As of March 31, 2023, with the Law School of Fudan University to design and develop a "Practical Course for Intellectual Property Protection on
and protecting IPR. In FY2023, Alibaba completed
more than 1,100 brands from 21 countries and E-commerce Platforms", with an aim to encourage college students to study and research IP issues in the digital economy.
95 pieces of knowledge products, involving
regions have joined AACA.
geographical indications, similar trademarks, patent
interpretations, Asian Games, World Cup, common
The Alibaba Special Protection Plan for Geographical
cases, etc. Over 1.2 million merchants have watched
Indications has been initiated with the aim to
and improved their understanding of IP protection
work with industry associations and government
through channels such as our compliant live-
departments in various regions to optimize the
streaming platforms and rule columns.
market environment for GI-certified products. As of
March 31, 2023, Alibaba has protected over 180 GI-
In the previous year, Alibaba piloted an IP support
certified trademarks and handled over 5,000 GI-
program for original brand merchants in the
infringing commodities.
women's apparel industry to provide participating
Attaching great importance to the cultivation of
merchants with customized IP right safeguarding
young IP talents, Alibaba engages in various forms
solutions, one-on-one coaching for IP right
of cooperation with colleges and universities.
safeguarding, as well as professional guidance on IP
protection and brand knowledge systematization.

Over 1,100
Number of brands that joined AACA
Since 2017, Levi Strauss & Co. (Levi"s) has been an active member of the AACA. AACA has always been a critical organization central in bringing together rights
holders, IP enforcement agencies, and key IP governmental stakeholders, with the common goal of developing solutions and innovative collaborations to combat
counterfeiting and IP infringements across all Alibaba platforms globally. We are grateful for the continued cooperation and ongoing support provided by the

180
Alibaba Group in helping us combat these illicit goods that impact our brands. We look forward to our continued cooperation and close partnership with both
Alibaba and the AACA as we work collectively to combat counterfeit activities while advocating to ensure respect for intellectual property rights.
Over
Protected GI-certified
-Zach Toczyński, Sr. Director of Global Brand Protection at Levi Strauss & Co.
trademarks
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Creating and enabling inclusive employment


MSMEs are the main drivers of jobs, leading to generate high-quality job opportunities, and
the large-scale creation of more employment actively foster inclusive employment as a way
opportunities in society. In this era of digital to fulfill our social responsibility and build
transformation, Alibaba strongly supports the the human capital foundation for a more
regularization and standardization of new sustainable digital transformation.
forms of employment, as we strive to help

Enabling large-scale Improving safety and security for Creating and promoting Promoting inclusive
employment opportunities flexible employment high-quality employment employment

Alibaba adheres to the concept that protecting intellectual property (IP) is critical to
protect innovation
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Enabling large-scale
employment opportunities

As for employment assistance, our digital economy


ecosystem can be represented by a "three-ring"
model. The first ring represents the direct jobs
that we create. The second ring represents the
entrepreneurship and employment opportunities
that directly emerge from our platform's main
businesses or economic activities, whose income
is generated through activities on our platforms.
Typical examples include direct job opportunities
created by MSME merchants selling goods or
services on our platforms as well as jobs in new
forms of employment that emerge from the platform
economy such as delivery riders, ride-hailing drivers,
and livestream hosts. The third ring encompasses
entrepreneurship and jobs indirectly driven by the
platform's core businesses or economic activities,
where income is derived from the upstream or
downstream relationships vis-à-vis the platform's
main business. For instance, job opportunities from
upstream and downstream suppliers of our core
platform businesses and from suppliers serving new
forms of employment.

According to the latest estimations by the School of


Labor and Human Resources at Renmin University
of China, in 2022, our entire ecosystem facilitated
over 70 million employment opportunities, with over
40 million within the 2nd ring that are jobs directly
connected to our platforms5.

5 From Driving Employment to Improving Employment Quality——Report on the Employment Value of Digital Platforms in the Wave of Digital and Real Integration
《从带动就业到推高就业质量——数实融合浪潮中的数字平台就业价值报告》
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Improving safety and security for Labor rights and interests


flexible employment
To protect labor rights and interests, Alibaba provides hourly wage higher than the minimum hourly wage claims settlement process to more risk scenarios,
The digital platform economy has generated more comprehensive protection based on systems and for local part-time labor and requires all logistics piloted occupational injury protection for workers
flexible forms of employment, reduced the barriers insurance. service providers to provide full-time delivery riders engaged in new employment forms in seven
to entry for many jobs, and served as a labor with a wage no lower than the local minimum wage provinces and cities, including Beijing and Shanghai,
reservoir that helps to stabilize the labor market. In terms of systems, Alibaba has launched the standard. and successfully launched dual insurance including
This platform ecosystem has created various forms Rider Rights and Interests Protection System for both occupational injury protection and commercial
of flexible employment, with delivery riders being crowdsourced delivery riders and developed the In terms of insurance, Alibaba has collaborated insurance in the pilot areas.
the largest group. In FY2023, the number of active Delivery Services Specifications of Logistics Service with commercial insurance companies to develop
delivery riders on the Ele.me platform totaled 3.307 Providers for logistics service providers who employ an insurance scheme suitable for delivery riders,
million, most of whom are so-called "crowdsourced and manage full-time delivery riders to develop an improving third-party liability insurance and other
delivery riders" who are flexibly employed, while improved and transparent salary system, clarify the guarantees. As of March 31, 2023, the required
a small number of whom were "full-time delivery rules for subsidies for special scenarios, and stipulate enrollment rate for business insurance is 100% for
riders" contracted with logistics service providers. We the minimum wage. Additionally, this system requires delivery riders. In FY2023, Alibaba continued to
took steps to comprehensively enhance employment providing crowdsourced delivery riders with an improve and extend the commercial insurance and
security in three perspectives - labor rights and
interests, occupational safety, and providing care
and development.

Labor rights and interests

Labor safety

Career care and development

Ele.me conducts safety training for riders regularly


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Labor safety

For occupational safety, Alibaba has optimized In terms of scheduling optimization, we always temporary road control, slow food supply of ● Guaranteeing rest time of delivery riders: Ele.me
the systems, training, hardware equipment, and pay attention to the delivery conditions. We adopt merchants, and failure to contact customers. Our strictly manages and supervises the order-taking
intelligent scheduling to raise safety awareness and strategies, such as coping with severe weather, system automatically trigger a protection scheme (working) time of delivery riders. The system will give
prevent risks. pausing orders after risk estimation, managing that extends the delivery time to ensure the safety a fatigue prompt when delivery riders have worked
timelines, and warning anomalies, to avoid delivery of delivery riders when the scheduling system continuously for more than 4 hours to fully guarantee
In terms of systems, Alibaba has implemented difficulties caused by severe weather, complex senses excessive pressure on local transportation their rest time.
related party responsibilities. terrain, and worry of overtime. We also implement capacities.
Platform: Alibaba has signed a work safety fatigue prevention strategies to guarantee the right
responsibility document with all internal employees. to rest of delivery riders.
Logistics service providers: Alibaba has signed a ● Coping with severe weather: We will send a

safety management agreement with all logistics prompt for bad weather, appropriately extend the
service providers and organized them to establish delivery time, and adjust penalty rules to impose
a safety officer system for unified coordination and no penalty for missing the delivery window or order
supervision of safety management. cancellation in case of bad weather.
Riders: Alibaba has signed a safety notice and ● Pausing orders after risk estimation: We will

commitment document with all delivery riders, comprehensively assess the delivery safety factor
established a comprehensive compliance and under the current conditions with reference
safety evaluation mechanism for delivery riders, and to historical road traffic accidents, historical
digitizes and displays the personal safety risk level meteorological conditions, recent fatigue level of
of delivery riders on the rider APP to urge them to delivery riders, as well as data such as real-time
fulfill their personal safety responsibilities. weather, working hours of delivery riders, and riding
speed, and trigger safety protection such as pausing
In terms of training, Alibaba has established a the receipt of orders when the safety factor is lower
safety training system to promote a culture of safety. than the threshold value.
A safety training system for delivery riders ● Managing timeline: Under the conditions of

throughout the entire lifecycle of their services short distances, complex terrain, or special traffic
has been established, covering legal and safety condition, the requirement of shortest delivery time
knowledge including fire protection, transportation, upon delivery riders will not be applied, so as to
public security regulations, and food safety. avoid safety hazards caused by excessive pursuit of
Alibaba advocates a culture of safety across our speed.
ecosystem, combining National Safe Production Month, ● Warning anomalies: We automatically match

Fire Protection Month, and National Transportation Day flexible delivery time for delivery riders in complex
with our "March for Safety" year-round campaign. delivery scenarios, such as rainstorms, sandstorms, Smart helmet protect delivery riders' safety
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Career care and development


In FY2023, as commended by ACFTU, Shanghai Orstarcity Station was awarded the "National
In terms of career care and development, we focus on the practical demands for delivery riders at work, Worker Pioneer", and rider Wenqiang Zhang was awarded the "National May 1 Labor Medal".
actively communicate with them, provide them with care and guarantee, and assist them in achieving growth Our delivery riders have also been awarded 17 provincial honors and over 10 city-level honors.
and a sense of worth by various means.

Communication mechanism within the APP. For specific issues, riders can also
Public notice and feedback mechanism: In March submit work order in the APP. Regarding reports Career care
1-square meter care station: All-China Federation Emergency protection kits: In 2022, during the
2023, we officially launched the Rider Agreement from riders on issues such as unpaid wages, traffic
of Trade Unions (ACFTU) has signed a contract with COVID-19 pandemic, Ele.me distributed more than
Rules Center, which consists of four modules - rider accidents, and public security incidents, we require
Ele.me to build 1-square meter care stations to meet 200,000 emergency protection kits to delivery riders
agreement, platform rules, delivery service rules, and a response and resolution within 48 hours, and such
the needs of outdoor workers for rest, replenishment, across China, containing antigen test kits, masks,
public notice, which effectively protects the rights of incidents are factors in the performance evaluation of
restrooms, etc. As of March 31, 2023, more than disinfectants and other pandemic prevention and
riders to be informed of the rules. management personnel.
100,000 stations across China have been open to Ele. control supplies, and we continuously upgrade our
me delivery riders. "contactless delivery" service to help protect both
24/7 service hotline: We have established a Hosting rider roundtable meetings: To better hear
riders and customers.
dedicated "24/7" telephone service hotline for delivery from delivery riders, in FY2023, Ele.me organized
riders. Delivery riders can directly call the national 187 rider roundtable meetings to solicit feedbacks Blue Knight Fund: With the Blue Knight Fund (Blue
service hotline to provide feedback. Additionally, the from riders on the performance assessment system, Knight refers to Ele.me delivery riders), we extend Career identity and advancement
rider dispatching APP has an online consultation incentive and accountability mechanisms, benefits, care to rider’s families, providing up to RMB50,000 for To cultivate the professional identity of delivery riders,
feature where riders can contact customer service and career development. critical illness assistance as well as an aid program the Ele.me platform launched an award system on
for the education of rider's family members. As of September 30, 2022, involving three categories of
March 31, 2023, we have helped 293 families in exhibitions - career achievements, social recognition,
coping with critical illnesses, assisted 22 rider’s family and historical record. As of March 31, 2023, a total of
members in successfully completing their education, 758,682 delivery riders have been recognized with
with relief funds provided totaling RMB 11.29 million. awards.

Women's Committee: In September 2022, Alibaba In FY2023, we held rider skills competitions and
established the Ele.me (Beijing) Women's Committee provided promotion and development training,
to better serve female delivery riders. The Women's providing delivery riders with opportunities to be
Committee actively cooperates with the Chinese Red promoted to station managers or team heads.
Cross Foundation, local women's federations, as We also opened positions on training, merchant
well as other organizations to safeguard welfare for expansion, etc. to provide transfer channels for
female delivery riders, including distributing hygiene, delivery riders.
health, and food resources to female delivery riders
in Beijing and providing professional advice on
Ele.me hosts Rider Roundtable Meetings to hear from delivery riders issues including children's education.
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Creating and promoting high-


quality employment DingTalk supports the career Lingyang focuses on talent cultivation in "Orange Class"— an inclusive platform
development of digital managers the field of data intelligence for vocational skills education
The digital economy is conductive to employment DingTalk has significantly reduced the cost of digital Lingyang is a drafting unit of the national standard for "Orange Class" platform, which mainly serves students
expansion and income increase and inspires more transformation for MSMEs based on its "PaaS platform + "Business Data Analysts" as well as a pioneer of the national in vocational schools, aims to improve their vocational
laborers to independently start businesses and low code" capabilities. This has in turn created burgeoning standard for "AI Trainers". Founded in 2015, Lingyang School skills and assist in high-quality employment. Orange Class
select jobs through new employment forms. As demand for digital managers. This role has emerged as a (formerly known as "Data School") focuses on building platform offers more than 200 courses to the public for free.
critical new profession and was officially included in the list talents in the field of data intelligence and assists enterprises We also collaborate with Hangzhou Science and Technology
of March 31, 2023, the number of labeled digital
of nationally recognized new professions in 2019. In March in cultivating inter-disciplinary talents that are “proficient Vocational and Technical College and Lishui Vocational and
professions in China has reached 97, including AI 2020, the China Employment Training Technical Instruction in data, technology, and business” through the training Technical College to build industry colleges. We are trying
trainers, blockchain application operators, and other Centre (CETTIC) under the Ministry of Human Resources program of "linking theory with practice" and the platform to explore the "Zhejiang Model" of digital talent training
knowledge-intensive positions. and Social Security (MHRSS) joined hands with DingTalk in of "integrating learning, practice and evaluation". In FY2023, through school-enterprise cooperation.
launching an online learning platform for new professions, Lingyang provided certification service of data analyst for over
focusing on digital resource training. In 2021, the National 15,000 students. As of March 31, 2023, the platform has benefited a total
In order to further improve the quality and quantity
Standards for Vocational and Technical Skills of Digital of 86,000 trainees, assisted 56,000 trainees in obtaining
of digital talents, we are actively developing training Managers (2021 Edition) co-authored by DingTalk were In FY2023, Lingyang School, along with the National Rural certificates, and received a total of 33,000 resumes. To
platforms with targeted initiatives, aiming to assist released. In 2022, the new 3.0 version of the online learning Revitalization Administration, the Ministry of Education, the better assist students who have completed training in
more students in finding high-quality employment platform was launched with online training visualized. As Ministry of Human Resources and Social Security and other obtaining employment, we have held 105 online "mutual
6
opportunities in the digital era. of March 31, 2023, the learning platform has registered 2.3 ministries, jointly launched the "Dewdrop Project+" to provide choice" sessions, attracting 599 participating colleges and
million digital management certificates obtained (person- customized digital ability training services. The project has universities.
times). been undertaken in Hebei, Sichuan and Anhui provinces, and

2.3 million
Number of digital manager certifications
Shan Jiang, digital manager
initiated cooperation with Hong Kong Vocational Training
Council to train data talents and promote high-quality
employment in the Guangdong-Hong Kong-Macao Greater
“As a teacher from a vocational school, I have
witnessed over 200 of my students using Orange Class.
obtained on learning platform Bay Area. The courses have not only helped me raise my own
In 2019, during her junior year at Zhejiang Business
Vocational and Technical College, Shan Jiang obtained teaching level, but also enabled my students to get

15,000
the Digital Management certification (intermediate). After cutting-edge knowledge in the industry."

Over graduating in 2020, she became a digital deployment


expert and a certified instructor in low-code development. “Data analytics capability will become increasingly - Jing Tian, Director of the E-commerce Teaching and
Number of students who got
She is responsible for enterprise organizational structure important in the future, and, just like the basic ability to use Research Office, Henan Technician Institution
certification of data analyst
provided by LingYang building, data decision analysis, and online linkage to Office software, will become a worker's basic skillset.”
connect upstream and downstream operations. To date,

56,000 she has served hundreds of companies in their digital -Hanlin Si, Lingyang data analyst student
transformation. Within three years, her monthly income has
Number of certificates provided by quadrupled from RMB5,000 to RMB20,000.
"Orange Calss"
"I have turned a job into a career, and I look forward to
the future with DingTalk, making progress happen."

-Shan Jiang

6 "Dewdrop Project+" is an employment promotion initiative, aiming at providing educational training and employment assistance to graduates
from families which have just shaken off poverty or may fall back into poverty.
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Promoting inclusive employment


"Grasping the lifeline with just two fingers, Enabling autistic youths to work as delivery couriers
The lower barriers and wider reach of digital I aspire to become the pillar of the family"
Meirong Chen, a 50-year-old mother from Quanzhou, along with an employment tutor from the Beidouxing Autism
technology applications have significantly promoted Tao Wang, a man suffering from brain dysfunction, finds it Children's Training Center, runs a Cainiao Post with 15 youths with autism. Through hands-on guidance in sorting,
inclusive employment and also made more job difficult to get a suitable job. He signed up for participating in registration, and warehousing, these youths at the station gradually acquire the ability to independently deliver packages.
opportunities readily accessible, and this can be the"Cloud Customer Service Green Channel for the Disabled" They accurately deliver packages by matching the door numbers, taking photos, and greeting recipients with a cheerful
co-launched by Alibaba and China Disabled Persons' "Hello, here's your package".
seen in terms of gender, educational background,
Federation (CDPF). Following the training, he has become After over a year of operation, the post has witnessed changes and growth of the autistic youths. Xiao Hui, who used to be
and geography. In 2022, the number of women unwilling to communicate and required someone to accompany him everywhere, is now capable of commuting to work
a qualified cloud customer service specialist and secured a
employed through digital platforms in China stable source of income. independently. He has become more outgoing and has learned to respond to others' questions.
exceeded 38 million7. For example, 80%8 of Taobao While Chen and the youths work diligently at the Cainiao Post, they also take the opportunity to raise awareness about
live streamers are female . autism in the community. The initial curiosity and judgment from community residents have gradually transformed into
acceptance and inclusion. Chen, together with the autistic youths, is moving towards a better life.

People with disabilities account for 16%9 of the world "I have never aimed to earn money. What I pursue is acceptance and inclusion. I will continue to manage the post
population. In China alone, there are 85 million10 well and involve more autistic youths in social activities, helping them find a path to self-reliance."
people with disabilities. Alibaba has continuously - Meirong Chen
worked hard on accessibility and inclusive
employment for people with disabilities. In addition
to directly employing 1,450 people with disabilities as
full-time employees, Alibaba’s various platforms and Alibaba cloud customer service specialist: Wang Tao

digital employment bases have supported hundreds


of thousands of people with disabilities to start "In a world without sound, my focus lies
businesses, or become e-commerce practitioners, on the food itself"
customer service specialists, delivery riders, station Nvwa Li, a girl from Shanxi province with hearing impairment,
managers, data annotators, etc. Notably, nearly 80% is a baker at Freshippo. By virtue of her sensitive sense of smell
and taste, she has constantly refined the pastry-making process,
of Taobao merchants with disabilities come from
bringing sweetness and love to the world through pastries.
rural areas11.

Li Nvwa Chen Meirong and the youths from the "Star Youth" Cainiao post

7 Data source: 2022 Report on the Employment Development of Chinese Women on Digital Platforms, by EO Intelligence.
8 Data source: From Driving Employment to Promoting Employment Quality - Report on the Employment Value of Digital Platforms in the Wave of Digital and Real Integration, by the School of Labor and Human Resources at Renmin University of China.
9 Data source: WTO https://www.who.int/zh/news-room/fact-sheets/detail/disability-and-health. 10 Data source: Xinhuanet http://www.news.cn/2022-03/01/c_1128428061.htm. 11 Data source: Report of Alibaba's Wishes and Actions in Support of Disability.
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Touching China Award winner Developing e-commerce skills and providing e-commerce employment
Hong Lu and his life with Taobao opportunities for women from marginalized communities
In 2022, Hong Lu, a man suffering from cerebellar nerve Lazada has collaborated with the Malaysian Ministry of Women, Family and Community Development to provide
dysfunction, was awarded the Person of the Year of CCTV more livelihood and training opportunities for women from marginalized communities using e-commerce
Touching China. After repeated setbacks in employment, platforms. The training covers three modules - business management, digital communications, and personal
he spotted Taobao in 2007. By intensively studying development, with an aim to enhance women's awareness and interest in e-commerce business models and
photography and Photoshop skills, he opened the first opportunities, and expand their sources of income. As of March 31, 2023, a total of 500 women have participated
store engaging in making electronic wedding photo and benefited from the program.
albums on Taobao. His business grew by leaps and
bounds and in 2017, he opened his own photo album
factory. Well aware of the difficulties faced by people with
disabilities in the job market, he has been striving to hire
more people with disabilities and has hired 35 employees
with disabilities among a total of 48 employees. In the
past two years, Lu has also been working on upgrading
production equipment in his factory to make them more
accessible for workers with disabilities. Through Taobao
and Tmall, he sells to customers worldwide.

"Others treat me as a businessman first instead of


seeing my disability when communicating online.
Taobao has changed my destiny and helped me
realize my value."

– Lu Hong

Touching China award winner Lu Hong and his Life with Taobao Lazada provides e-commerce business employeement training for women from marginalized communities
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Promoting responsible production


As a platform company, Alibaba believes that our commitment
to fostering responsible production hinges on two crucial
factors. First, Alibaba should promote suppliers to fulfill their
social responsibilities in managing their supply chain. Second,
as a digital technology-driven platform company, we can drive
a wider range of MSMEs to engage in responsible production
through technology products, platform mechanisms, and
services solutions.

Upgrading ESG management Platform driving enterprises to


of suppliers practice responsible production

推动生产或流通配图
(辛苦客户提供)

Alibaba is commitmed to fostering responsible production as a technology platform company


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Upgrading ESG management of Creating and maintaining a transparent, fair, honest, and sustainable business environment
suppliers
Based on the principles of fairness and transparency, fair, honest, and sustainable. We have developed performance, evaluation, grading and accountability,
Integrity, honesty, and fostering a sustainable and Alibaba engages in supply chain management and systematic supplier management standards and dismissal and replacement, and established a
healthy business environment have always been cooperates with suppliers to build and maintain a covering the entire lifecycle of suppliers, including corresponding auditing mechanism to continuously
at the core of our supply chain management. This healthy business environment that is transparent, certification, recommendation and allocation, optimize the management system.
aligns with the principles of ESG development. After
formally adopting ESG as a cornerstone strategy, in
FY2022, we issued the Alibaba Supplier ESG Code of Establishing systems and rules
Conduct. Moving forward in FY2023, we are gradually We have issued and implemented a series of supplier
integrating ESG concepts into our supply chain rmanagement policies to guide our suppliers.
management to promote common sustainable
development. Alibaba has always adhered to an attitude of zero
tolerance for integrity violations and has established
a mature management system and mode. In the
Creating and maintaining a
process of supplier selection and admittance,
transparent, fair, honest, and
in order to avoid conflicts of interest, we have
sustainable business environment
established clear standards on "the relationship
between suppliers and Alibaba employees" and
Facilitating a comprehensive, "relationships between suppliers," covering the
closed-loop, and two-way supplier types of relationships, determination criteria,
ESG management system and operational requirements. On the supplier
side, we require vendors to sign the Honesty and
Integrity Agreement and make commitments on
relevant compliance, ethical, and other behavioral
requirements in the certification and admission
process. On the employee side, we require
employees to comply with the Alibaba Group Code
of Business Conduct when conducting business with
external partners, not to solicit or accept bribes,
not to solicit or receive gifts, not to solicit or accept
entertainment and hospitality, not to borrow money
from external partners, etc. Alibaba has publicized
a dedicated hotline to accept reports on any illegal,
non-compliant, or fraudulent issues, or suspicious
Alibaba endeavors to build fair and transparent systems and rules
behaviors of Alibaba employees.
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Integrating the principles of fairness and Establishing a supervision and control Non-compliance regulations
transparency into operations mechanism
Alibaba has established the system of Common
Internally, Alibaba has established a digital system Alibaba established a control mechanism on Supplier Breaches of Contracts & Rules and Their
for supplier management to make the overall process pre-project prevention and control, in-process Level Determination, stipulating unified and
visible and traceable. Adhering to the principles of supervision, and post inspection, so as to reduce clear standards on the breaches of contracts and
fairness and transparency, we have unified standards compliance risks and eliminate potential for actual rules as well as their level determination and
to manage and evaluate suppliers, ensuring that asset losses. We perform risk identification and audits specifying standardized disposal measures, such
they have equal access to business opportunities. In throughout the procurement process, including risk as "freezing" and "removal". Any scenario where
the process of establishing cooperation, we follow audits of supplier certifications, risk scanning during an integrity incident occurs will be seriously dealt
the supplier certification requirements as well as the sourcing, performance evaluation, and periodic with in accordance to the Blacklist Management
bidding selection criteria. During the engagement unannounced inspections and audits. In FY2023, the Requirements for Suppliers of Alibaba Group
period, we emphasize fair distribution and positive pass rate of special unannounced inspections for Procurement Platform.
guidance. Upon the completion of projects, Alibaba suppliers reached 94%. For suppliers failing to pass
scores supplier performance based on the supplier audits, Alibaba offers clear rectification suggestions
evaluation criteria and keep all records in the system. and a resolution plan. Alibaba has also provided
The submitted performance records will serve as training to suppliers on typical issues identified in the
an important index for supplier grading as well as unannounced inspections.
realizing a tiered management system for suppliers.
High-star suppliers will have the opportunity to be
promoted to strategic suppliers.

Externally, we use a unified supplier portal and


mobile version to show suppliers the engagement
status of the entire chain, including selection, List of Supplier Policies
quotations, orders, and payment. We also promptly
release announcements on business cooperation, Rules and Regulations for Supplier Management of Alibaba Group Procurement Guidelines
Supplier Certification and Evaluation Schematic Diagram
management requirements, and integrity and
Operational Guidelines for Supplier Operation, Qualification and Performance Compliance Risk Management
compliance. Alibaba will also collect continuous of Group Procurement Department
and timely feedback on various aspects of business Supplier Subcontracting Management Specifications of Alibaba Group Procurement Department
cooperation management, cooperation efficiency, Operational Guide for Blacklist Supplier Handling of Alibaba Group Procurement Platform
and other areas through dedicated Q&A hotlines, Star Suppliers Selection and Strategic Supplier Pilot Plan of Alibaba Group Procurement Department
Supplier Label Management Specifications of Alibaba Group Procurement Department
annual supplier surveys, and direct emails to senior
Honesty and Integrity Agreement
management. Common Supplier Breach and Violation Behaviors and Level Determination Policy
Creating and maintaining sustainable business environment
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Facilitating a comprehensive, closed- Guiding and supporting supplier


loop, and two-way supplier ESG ESG work
management system Flexible Employee Management
We take ESG contributions of our suppliers as an
important factor in strategic suppliers’ selection, Alibaba firmly believes that whether in our own operations
In 2022, Alibaba released the Alibaba Supplier ESG
or our supply chain ecosystem, people are the most
Code of Conduct (hereinafter referred to as the and give preference in engagement share, scope,
valuable assets.
Code). Alibaba has deepened and widened the ESG and length to encourage those with outstanding
management of suppliers in FY2023. As of March performance. We have also piloted the declaration, In terms of flexible employment, Alibaba requires suppliers
31, 2023, over 14,000 suppliers have signed the review, and audit of supplier ESG behaviors. to strictly comply with the Labor Law of the People's
In FY2023, Alibaba's audit covered 28% of our Republic of China, the Labor Contract Law of the People's
Code and the proportion of contracted suppliers
Republic of China, as well as other laws and regulations,
increased by 10% year-over-year. Meanwhile, suppliers12 . We promptly notify suppliers to rectify
and to resolutely implement our labor standards and
Alibaba has gradually promoted the identification of any issues identified to be further optimized employment standards, including Alibaba Group Flexible
material issues in different business scenarios, and and improved. In terms of supplier environment Employment Safety Management and Code of Conduct
motivated supplier partners to participate in and management, Alibaba has gradually promoted and Alibaba Group Flexible Employment Workplace
green labeling of goods by establishing standards Safety Management Standards. Alibaba manages and
practice sustainable development together through
supervises suppliers with flexible employment through the
promotion, establishing standards and positive and encouraging supplier report. In addition, we
following three ways:
guidance. have refined the requirements for procurement of
green goods and green engineering products and ● Performing regular audits to suppliers with
materials. Based on national industry standards, flexible employment, covering contract signing and
materials and products with high environmental subcontracting, social insurance coverage, salary payment,
Improving the ESG risk identification and etc., ensuring compliant execution of employment
management rules for the supply chain hazards are completely prohibited.
standards;
● Establishing a digital communication platform for

We have established a special management In addition, to raise awareness of supplier ESG flexible employees to deliver key information to them,
committee for ESG optimization of our supply chain, management and to collectively promote ESG ensuring that Alibaba's employment standards are readily
practices, we have established a website for the accessible to all of them, and launching a regulatory
whose responsibilities are to set management
channel to receive feedbacks on non-compliant
strategies and annual goals, evaluate and determine Alibaba Supplier ESG Cooperation Program to
employment;
material issues and priorities in each supply raise suppliers’ awareness of ESG management. ● Inviting an independent third-party company for annual

chain scenario. In FY2023, we first formulated and On this website, suppliers can inquire about ESG inspections of suppliers’ workplaces and ensuring the
issued detailed rules for certain scenarios, such as management rules, the application for the Code and health and safety of flexible employees.

the Standards for Prohibited Use of High Hazard the feedbacks of the evaluation results, the periodical
In FY2023, Alibaba extended coverage of the employee
Products and Processes in Engineering Procurement tracking of the rectification status, the access to best
and supplier rights auditing program, and explicitly
and the Executive Standards and Penalty Mechanism practices and training materials, and much more. required suppliers failing flexible employee management
for Suppliers in Flexible Employment. to make rectification.

Supply chain employees providing customer service for Alibaba

12 Audit coverage ratio is calculated based on procurement amount.


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Platform driving enterprises to Providing compliance services and


practice responsible production training for merchants
As a platform technology enterprise, Alibaba has a As a platform operator, we strive to be the "frontline" In FY2023, we innovated in online training and With continuous efforts, we have been awarded
responsibility to empower more MSMEs, helping them in raising the awareness of laws and regulations as dissemination model. Through inviting experts from the title of "Rule of Law Publicity and Education
achieve sustainability and responsible production well as promoting compliant operations to millions various fields such as the regulatory department Demonstration Base" from Zhejiang Administration for
in the digital wave. In FY2023, we promoted the of market entities. We provide training and services to and the industry to educate merchants on Taobao Market Regulation at the end of 2022.
implementation of this practice from three aspects: reinforce compliance management. and Tmall, Alibaba aims to promote the business
platform services, platform mechanisms, and digital philosophy of sustainable development and raise For more details,
please refer to Chapter 3 Improving full-link product quality
technology products. compliance awareness. and safety P96,
Chapter 4 Assisting Chinese MSMEs in "going global" via
digital means P121
Providing compliance services and
training for merchants

Guiding and promoting merchants


towards green production

Assisting green development of


Innovative compliance training and dissemination
industries with digital technology
products Alibaba’s compliance training program Compliance Frontline
focuses on national policies, industry trends, and current events
related to people's livelihoods around the theme “helping
merchants understand policies and regulations and engage in
compliant operations”, with contents covering multiple fields
of e-commerce operations such as data security (personal
information protection), product compliance (food and drug
safety/product quality, etc.), IP rights (patent/trademark rights,
etc.), content compliance (advertising law and live-streamer
compliance, etc.), and anti-fraud publicity. As of March 31, 2023,
the number of views has exceeded 10 million in total.
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Guiding and promoting merchants towards green production Assisting green development of industries with digital technology products

Low-carbon goods are still at the initial stage ● In October 2022, Alibaba launched a Low-carbon We use "Energy Expert," an energy use and carbon can assist MSMEs in optimizing energy use in HVAC
of development, lacking unified standards. We Friendly Products Program. As of March 31, 2023, emission optimization and measurement platform, (Heating, Ventilation, and Air Conditioning) systems,
advocate and motivate users to build a low-carbon Taobao and Tmall have already had 409 brands to help enterprises monitor and manage their reducing the consumption of resources. As of March
consumption awareness. At the same time, we totaling 1.91 million products that include 41 first- power consumption and carbon emissions in real- 31, 2023, a total of 2,580 companies have started to
aid the development of low-carbon goods and class categories of Low-carbon Friendly products13. time. Based on Alibaba Cloud's AI technology and use Energy Expert for more responsible production
facilitate the green transformation of businesses by smart energy-saving algorithms, Energy Expert worldwide.
developing Low-carbon Friendly Products Program
For more details,
and product emission reduction standards. please refer to Chapter 1 Engaging and enabling
decarbonization through our platform ecosystem P46
TÜV and Alibaba Cloud sign a strategic cooperation agreement
●In June 2022, Alibaba launched a carbon ledger
On March 9, 2023, TÜV Rheinland Group, an related to carbon emissions and energy provided

1.91
platform to assist consumers to understand, choose
and purchase low-carbon products and services, independent international third-party testing, by TÜV Rheinland. This brand-new service has been
million
inspection, and certification agency, signed a launched in March, with the aim to comprehensively
guiding the formation of green living. [For details, low-carbon friendly products
strategic cooperation agreement with Alibaba assist enterprise clients in monitoring energy
please refer to Chapter 1.3 Engaging and enabling
Cloud in Cologne, Germany. Under the agreement, consumption, analyze carbon footprints and provide

2,580
decarbonization through our platform ecosystem]
TÜV Rheinland recognizes the accounting results of energy consumption suggestions, thus helping
enterprise clients for carbon emissions, provided MSMEs achieve the goal of energy conservation and
● In July 2022, Alibaba partnered with consumer Number of customers of Energy Expert by Alibaba Cloud's Energy Expert platform, in terms carbon reduction.
worldwide
brands to launch "low carbon actions". As of March of third-party testing and certification services
31, 2023, Alibaba has continuously promoted this
program with 23 brands, covering multiple industries
such as fast-moving consumer goods (FMCG), home
appliances, beauty, and food. Through the driving
effect of these leading brands, this program aims to
dive into carbon reduction scenarios in the consumer
world, cultivate consumers' awareness of carbon
reduction, and provide references for more consumer
brands to carry out carbon reduction actions.

As a platform company, Alibaba has been


committed to promoting responsible production

13 First-level category, the basic classification of commodities on the Taobao Tmall platform
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Enhancing community
inclusion and
resilience
The urban-rural socioeconomic divide remains one of the most
pressing development challenges across the world, including in
China. Development will also not be sustainable if people across
society see years of hard-won gains wiped away by natural disasters
and other crises. Accordingly, we will strive to enhance both
community inclusion and resilience, and will continuously deploy
resources to support progress in these two intertwined challenges.
We will also seize opportunities for technological innovations,
expansion of commerce, and long-term development.

We encourage enhancement in the following two aspects:

● Rural revitalization through digital development P148


● Community resilience through digital technology P166
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Expanding rural e-commerce market Assisting in rural talent development

Over RMB 130 billion 27 Over 220 Outstanding Team for Contributions to
"Sannong" in 2022
Alibaba has introduced talents into rural areas, sending Alibaba’s rural commissioner team was awarded the honor of
Sales of 832 counties previously categorized as impoverished 27 “rural revitalization commissioners” and over 220 Outstanding Team for Contributions to "Sannong" (Agriculture, Rural
nationwide exceeded RMB130 billion on our platforms. “rural technology officers.” areas, and Farmers) in 2022

Supporting rural value chain upgrade


Enhancing community Community resilience

inclusion and resilience

Over 1,460 Promoting rural vitality


Gold Stevie® Award in
Transportation & Logistics
Cainiao has enhanced rural logistics efficiency and built over
1,460 county-level smart logistics warehouses, along with Cainiao won the Gold Stevie® Award in the Asia-Pacific for

102 14,002
nearly 50,000 posts in villages and towns Innovative Achievement in Transportation & Logistics

Over 140 The "Cloud for Youth" program has been implemented in 102
schools serving over 60,000 teachers and students
Global logistics partner
Cainiao inked a global logistics cooperation agreement with
Freshippo has promoted its agricultural direct purchase model Rural medical expertise learning platform has provided training the United Nations World Food Programme (WFP), becoming
and built more than 140 Freshippo villages and counties for 14,002 local doctors a global logistics partner of WFP
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Enhancing Community
Inclusion and Resilience

Rural revitalization through digital


development
For Alibaba, our solution to the urban-rural the digital economy in urban and rural areas by
social economic divide through our three connecting markets, upgrading value chains,
pillars of "Technology, Social responsibility, and cultivating talents and promoting rural vitality.
Stakeholder ecosystem" can be translated into We aim to contribute to building the digital
digitalization, urban-rural connections, and urban-rural economy, alleviating inequality,
economic development. Along these lines, we and achieving rural revitalization. Forming robust Building talent
have been continually committed to building Building a bridge Energetic rural
rural value chains and capacity for
between rural and residents and
by linking the long-term rural
urban economies communities
digital and real development
and markets
economies

Rural revitalization through digital development


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Building a bridge between rural Promoting agricultural products via live streaming
and urban economies and markets
The comparative lack of access to capital and to marketing resources by agricultural and rural businesses are key challenges in expanding the reach
We have long been committed to expanding China's of agricultural products to larger markets. To tackle this, we have continued to iterate rural e-commerce models, helping products from rural areas
digital consumer market to rural areas, making the gain more market recognition and consumers.
pursuit of a better life by urban residents a core
driver of rural development. This enables products
from rural areas to reach a wider market, promotes
the development of rural industries with unique Taobao Live provides a display platform for agricultural products Bringing excellent rural specialties to consumers
features, and provides affordable and high-quality
We actively leverage the power of our Taobao Live platform, and have launched a We are focusing on industries that leverage rural specialties and promote them with
goods for rural residents. Recently, we have been visual agricultural products zone, "Fresh Agricultural Products Hall" and other online branding. We also help merchants to identify and promote rural products with competitive
further promoting these Chinese products and product display platforms to boost sales of agricultural products. We do this by giving advantages through multiple channels and marketing integration, bringing more rural
experiences to ''go global''. the products more exposure and providing more opportunities for our engaging specialties to a wider market.
rural live-streamers, hence achieving stable income growth for farmers. As of March
In FY2023, we continued to incubate agricultural 31, 2023, "The Village Broadcasting Plan" of Taobao Live has driven over 130 million In Yuanyang County, Yunnan Province, taking advantage of the Hong River Hani Rice
product brands to spur the rural economy. orders for over 8 million products in over 3 million live-streaming sessions. Terraces, a world cultural site, we have promoted local agricultural specialties to consumers
across China through livestreaming, Alibaba self-operated stores, and cooperation with
Sales of 832 counties previously categorized as
During the "11.11 Global Shopping Festival" in 2022, we launched the "One More third-party e-commerce entities, aiming to create industry value around core products like
impoverished nationwide exceeded RMB130 billion Agricultural Product" initiative to all live-streamers on Taobao, aiming to bring red rice and Orah mandarins, and boost incomes for local households.
on our platforms, and total sales of 160 national key agricultural products to the forefront by adding three minutes for their spotlight
counties for rural revitalization exceeded RMB4.3 to boost rural incomes. During the event, 16.64 million users placed orders for
billion. agricultural products on Taobao, a total of 35.49 million agricultural products were
sold via live streaming, and over RMB5 billion in e-commerce sales was achieved for
Promoting agricultural products via 832 counties previously categorized as impoverished nationwide.
live streaming

Bringing "Taobao Village" to the world

Over RMB 130 billion


Sales of 832 counties previously categorized
as impoverished nationwide on our platform

Over RMB 4.3 billion


Sales of 160 national key counties for rural
"One More Agricultural Product" initiative provides an exhibition platform for agricultural products Live-streaming brings agricultural products to the forefront of the market
revitalization
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Bringing "Taobao Village" to the world

In the digital age, the platform market is global. To help rural


entrepreneurs to benefit from global markets, we help more
Using digital technology to turn villages into "digital ports",
and more MSMEs, young people, and women entrepreneurs and selling the intangible cultural heritage rattan braided
in rural communities participate in global trade and bring articles to the world through Alibaba.com
the Taobao Village model to more emerging and developing
Intangible cultural heritage is often a small, niche pursuit but Lianjiang Huang from
economies, empowering local rural entrepreneurs to share Bobai County in the Guangxi Zhuang Autonomous Region has turned the art of rattan
the growth dividends of globalization. weaving into a business that has mobilized the whole village and turned it into a global
business. When Huang first set up an account on Alibaba.com, our real-time translation
system and trend analysis services helped her business go global. During the COVID-19
pandemic, Huang utilized the digital and intelligent decision-making service provider
"Data Advisor" on Alibaba.com to choose products that better met overseas market
demands.

As of March 31, 2023, there are 435 rattan weaving enterprises in Bobai County, with
approximately 28,000 permanent employees and 200,000 temporary and seasonal
workers. With the support of Alibaba.com, they have successfully made their intangible
cultural heritage products "go global with a single click" and expanded their market
Reducing poverty in developing countries in to over 60 countries and regions, including the United States, Germany, the United
Africa via digitalization Kingdom, and Malaysia.

In July 2022, Alibaba Group and the United Nations International


Trade Center (ITC) signed a memorandum of understanding to
commit their respective strengths to jointly support MSMEs in
developing countries to participate in global digital trade and help
reduce poverty. Alibaba and ITC are working together in multiple
areas, including digital upgrading to support local industries in
developing countries, training for MSMEs, experience sharing in
digital rural revitalization, and facilitating exchanges between
governments and enterprises. In FY2023, we held a special
training themed "The Evolving Chinese Market," with the goal of
enabling over 50 African MSMEs to have a deeper understanding
of e-commerce and the market in China. We have also initiated
a symposium of ambassadors and officials from eight African
countries and invited them to attend the China International
Import Exhibition (CIIE) sub-forum, "Opening and Governance of
Digital Economy," to promote cooperation and exchanges.

Intangible cultural heritage: the art of rattan weaving


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Forming robust rural value chains


by linking the digital and real
economies
To fundamentally redesign and expand the reach of
the rural economy and create market opportunities,
it is necessary to continue to extend the value
chain for agricultural products, improve the rate of
return in agriculture, and diversify rural economic
activities. By leveraging digital technology and
platform strengths, we can empower rural value
chains in three dimensions: production, supply, and
sales. We have helped rural areas meet the growing
external demand for green products, ecotourism,
and cultural-based products, established pillar
industries across rural counties, and strengthened
the economic foundation of rural revitalization.

Building foundational capabilities for rural


agricultural e-commerce ecosystem

Enhancing the development of smart


agriculture

Shaping brands in rural agriculture

Promoting rural tourism and cultural charms

Forming robust rural value chains by linking the digital and real economies
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Building foundational capabilities


for rural agricultural e-commerce "Freshippo Village" promotes the new model of
ecosystem "order-based farming" to facilitate the production of
agricultural products upon demand
The traditional agriculture sector has long faced
Freshippo uses digital technology to connect the upstream and downstream
structural problems such as environmental
industrial chains of agriculture and is developing a new "Freshippo Village"
uncertainty, scattered sub-scale production, non- model of “order-based farming” to promote high-quality agricultural
standard quality control, long distribution chains, and development. The model covers the entire chain of agricultural production,
thin profit margins for agricultural products. We have processing, transportation, and sales matched to consumer demand,
been working diligently to address these challenges, and helps villages and counties to establish a stable supply relationship
with Freshippo. We plan to establish 1,000 Freshippo Villages over the
so as to assist rural communities in establishing their
next 10 years and continue to explore innovative models to facilitate the
commercial ecosystem and infrastructure. modernization and high-quality development of China's agricultural sector.
As of March 31, 2023, Freshippo has already established over 140 Freshippo
Villages/Counties in 25 provinces across China.
Agricultural direct purchase model
Using “order-based farming", Freshippo also provides the organic vegetable
Small farmers often struggle to get reliable and bases with access to a stable and reliable market, helps to upgrade the
up-to-date information on the market demand planting standards for organic vegetables, establishes processing centers
and supply of agricultural products facing market for fruits, vegetables, and ready-made dishes, and creates high-quality
and environmentally-friendly supply for the consumer market. The organic
fluctuations, and they are reluctant to try different
supply chain, which connects directly from "farm to table", optimizes the
crops or produce high-quality products with more procurement costs for businesses and enhances supply stability. We have
added value. We use the platform's large scale to managed to reduce the prices of organic vegetables sold by Freshippo by
offer direct contracts to farmers and give them more 30-40% compared to market prices, achieving a mutual promotion of green
certainty, improving and allowing for better efficiency development and common prosperity. In FY2023, Freshippo expanded
organic products from vegetables to other categories, including fresh meats
of resource allocation, and helping them upgrade The largest organic vegetable Freshippo
and poultry. As of March 31, 2023, Freshippo has built more than 100 organic
their agricultural production methods and raise their vegetable bases and over 30 organic Freshippo Villages across China. Village: Yunnan Yunling organic
incomes. agriculture base

Over 140
The number of Freshippo
Over 100
The number of organic
In Yunling, Freshippo has 10,000 mu (60,000 acres) of certified
organic land, creating jobs for more than 500 local farmers,
mostly young people, generating income of over RMB27
Villages/Counties built vegetable bases built million for the locality and doubling their previous income.

Over 30
The number of organic
Organic Freshippo Villages in Yunnan

Freshippo Villages built


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Rural logistics

Quality control throughout the supply chain serves Cainiao continues to build logistics networks applicable for counties and villages to promote the efficiency of express
as an important means to guarantee the economic delivery in downstream1 and the upstream circulation of agricultural products2.
benefits of agricultural products. We have actively
To improve the efficiency of delivery in rural areas, we have built smart co-distribution centers To expedite the upstream circulation of agricultural products, we have promoted the
built efficient, convenient, and smooth rural logistics
in counties, integrated county-to-town logistics paths, and promoted resource reuse and establishment of warehouses in places of origin, circulation centers, and processing centers
networks across counties and villages, as well as digital integration to transition from "single brand, multiple stations" to "multiple brands, one station". and connected them with distribution centers. This has facilitated the low-cost distribution
and smart warehouses to provide system solutions for As of March 31, 2023, in China, Cainiao has established over 1,460 smart distribution centers in of agricultural products. We have also provided comprehensive digital automated solutions
the processing and distribution of agricultural products, counties and nearly 50,000 posts in villages and towns. In Qingtian County, Zhejiang Province, to assist small express delivery stations in counties to improve their operational efficiency. As
thus improving rural logistics efficiency and boosting smart distribution centers have contributed to integrating 5 mainstream express delivery of March 31, 2023, Cainiao has launched agricultural product supply chain programs in 28
services and renovating 61 tertiary stations in counties and villages, with a processing capacity provinces and 264 counties across China, helping county-level small-scale express stations
rural industrial development.
of approximately 70,000 packages per day and coverage of 360 administrative villages. achieve efficient and accurate sorting of local specialty products.

Over 1,460
The number of smart distribution
centers in counties

Over 50,000
The number of posts built in
villages and towns

28
The number of provinces that have launched
agricultural product supply chain programs

Delivery in rural areas Agricultural products sold from rural areas to all over the country

1 Express delivery in downstream refers to express delivery in downstream rural areas.


2 Upstream circulation agricultural products refers to selling products from rural production sites across China through logistics technology and the ability of supply chain.
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Establishing agricultural Pineapple industry in Xuwen county


digital service platforms

Digitalization plays a key role in upgrading the agricultural value chains. We have established a digital service
platform to assist farmers in acquiring and analyzing information on raw materials, production, logistics,
and distribution management, etc. to make better business decisions. For example, we have established
large-scale digital warehouses in major fruit production areas and joined hands with ecosystem partners
to establish cooperative warehouses covering core agricultural production areas in China. Through these
actions, we have formed a digital warehousing matrix and distribution networks together with online and
offline retail channels across China such as warehouses in places of sales, Taobao, Tmall, and Freshippo.

Helping Yongshun County connect digital links and promote


the leap of specialty industries in poverty alleviation areas
Empowering Xuwen County to strengthen and extend the
Alibaba has assisted Yongshun County in Hunan Province in establishing a digital smart agriculture demonstration pineapple industry chain via digitalization
base, enabling the integrated development of a digital economy with rural revitalization.
Since 2021, Alibaba has supported the digital upgrade of the pineapple industry in
In terms of agricultural production and sales, we have assisted Yongshun County in uploading, collecting, and Xuwen County in Guangdong Province through a series of innovative measures including
accumulating agricultural production data and perfecting the management of planting bases in agricultural formulating standards, jointly building supply chains, expanding channels, and upgrading
industrial parks. We are assisting in the constructing warehouses in Yongshun County, giving access to the "first brands. This has helped to unlock sales channels for agricultural products and achieve high-
mile" of the agricultural product supply chain. Additionally, we are facilitating the flow of online sales channels for quality development of industries. Such efforts have also attracted many new farmers to
specialty agricultural products through live-streaming consumption support. return to or move to Xuwen to plant pineapples. In 2022, Xuwen set a new record in terms
of the yield, output value, and average prices of its pineapples. The local warehouses have
In terms of rural services, we have completed the deployment of the Agricultural Information Service Platform, shipped pineapples, lemons, and other products for over 10,000 orders. Farmers in Xuwen
Agricultural Technology Training Platform, and Digital Service Center Platform for industrial parks. We have also control the quality from the origin as Xuwen has taken the lead in Guangdong Province in
assisted in aggregating county-level specialty industries and resources, and analyzed and monitored resource giving access to the "first mile" for agricultural products. Directly delivering pineapples from
utilization through cloud computing, to provide a quantitative basis for planning and decision-making in industrial the origin reduces the supply chain cost by more than 25%.
management.

Pineapple industry in Xuwen county


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Enhancing the development of smart agriculture Shaping brands in rural agriculture

Improving science and technology in agriculture is are also investing dedicated funds and technologies The lack of differentiated recognition and brand marketing planning and execution. Furthermore,
one of the key links to enhance the efficiency and in exploring ways that digital tools can apply science effect remains one of the key bottlenecks for Alibaba's intellectual property protection platform
industrialization of the sector, and achieve the rural and technology to promote the development and agricultural economies in most regions. Based on provides a one-stop brand protection service, to
revitalization of value chains. While building out application of agriculture technology. the agricultural products, as well as the unique local improve the recognition and economic values of rural
logistics, sales, branding, and market capabilities, we history, culture, and specialties, we provide targeted brands in multi-dimensional ways, and to preserve
help in establishing a series of rural brands, creating rural folk customs and traditions.
high-quality product offerings, and bolstering

Alibaba Cloud contributing to the technological innovation of seed "Seeking Beauty in Rural Areas" and revealing beautiful villages to more consumers
Smart plant breeding is a certain trend in agricultural modernization. In collaboration with the Chinese Many counties boast beautiful scenery and We have delivered a set of regional public brand solutions
Academy of Agricultural Sciences (CAAS), we are innovating plant breeding technology for rice, corn, and high-quality agricultural products, but lack for Ping'an District, Haidong City, Qinghai Province, which
other crops by using the power of cloud computing. In FY2023, we launched a smart breeding platform the skills in shaping brands. In this regard, strongly demonstrates the unique cultural characteristics
that covers the entire plant breeding process, completed the design of various experimental methods, and Alibaba has launched the program, Seeking and history, natural landscape, local customs, Hehuang
completed whole genomic selection and precise phenotype prediction of high-generation progenies. Beauty in Rural Areas, aiming to reveal folk customs, and selenium-rich product industry of
beautiful villages to more consumers through Ping'an. This brand design has now been applied in
professional's assistance in providing free over 10 scenarios in Ping'an District such as city image,
brand design solutions for underdeveloped pandemic prevention and control, brand packaging, and
counties. Focusing on agricultural products and infrastructure. "Pingping" and "An'an" have become well-
tourism in underdeveloped counties, we have known mascots among local people.
constructed a complete set of visual assets for
county brands and established a sustainable
brand system for subsequent publicity, industrial
development, and marketing of agricultural
brands. Furthermore, based on our research and
judgment of agricultural product trends, we have
explored local specialties, and designed county
product packages adapted to current e-commerce
platforms. In 2022, the Seeking Beauty in Rural
Areas program was granted the IF Design
Award, and the design work "A Taste of Villages"
was awarded the gold prize of the world's top
packaging design competition Pentawards. As of
March 31, 2023, we have completed investigation
visits and rural brand designs for a total of 13 counties.
Alibaba Cloud contributing to the technological innovation of seed The design work "A Taste of Villages"
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Promoting rural tourism and cultural charms

Revitalization of the rural economy requires both primary and tertiary industries to work together. The coordinated development of culture and tourism along with agriculture can better showcase the charm of rural culture
and further speed up rural revitalization. We have been actively applying digital capabilities to support various scenarios such as agricultural leisure, education, and healthcare, so as to contribute to the integration of
ecological agriculture, leisure agriculture, and rural tourism.

Amap contributing to rural tourism development Fliggy launching the “Seeking Beauty Together" program
to promote rural tourism
Rural tourism serves as an important engine for promoting In FY2023, Fliggy launched a rural tourism promotion program “Seeking Beauty program to design new products for counties where Alibaba rural commissioners are stationed. We are helping
rural revitalization. To connect tourists with underdeveloped Together", aiming to bring tourists and digital development experience to market and sell localities through an official live-streaming account "Hangout with Fliggy” and tourism KOLs.
areas with interesting attractions, since 2018, Amap has been rural areas.
creating "online maps for poverty alleviation through tourism",
expanding to cover more counties, and enhancing the Fliggy has customized a "Digital Tutorial for Seeking Beauty Together", which
authentic ecological tourism experience. The latest projects features distinctive tourism routes that showcase the unique culture, nature,
include: agriculture, and industry of each place. Tourists receive one-stop access to
maps, trip planning, immersive guides or virtual reality experiences, tour and
● Smart county portals and tourism ranking lists: enabling activity reservations, and other services by scanning a QR code. In January
tourists to quickly obtain county overview, popular tourist destinations, 2023, the Digital Tutorial has been selected for the "China Association of Travel
tour assistants as well as other information via an app; Services List of Model Promotion Cases for Cultural and Tourism Marketing".
● One-click tour to scenic spots: taking Amap as the entry
Shaanxi's Foping County hosts the highest concentration of wild giant pandas.
point, providing one-stop services for tourists, including food,
Fliggy has tailored a digital tutorial integrating "script games" with travel
accommodation, transportation, entertainment, and shopping, all
scenarios for Foping in combination with local protection of wild giant pandas,
via a single app;
local agricultural products such as dogberry honey, and local agricultural,
● Virtual tour of scenic areas: enabling tourists to listen to a brief
cultural, and tourism resources, to showcase Foping's biodiversity and tourism
introduction of scenic spots when driving within 15 to 30 km of
resources in an innovative form.
such spots while not affecting normal navigation.
Fliggy has also been focusing on training cultural and tourism talent in rural
As of March 31, 2023, Amap has helped multiple counties and
areas. As of March 31, 2023, Fliggy has registered 1,720 attendances for the
regions, including Ganzi County in Sichuan Province, Pingshun
training programs in 13 counties including Pingshun County, etc. Fliggy has
County in Shanxi Province, and Foping County in Shaanxi Province,
launched the Primary Certification Camp for Internet Rural Tourism Talents on
in marking tourist attractions and interesting points of their
the Orange Class platform, with 32 courses and 57 lessons currently available
distinctive villages, and assisted Foping County and Yijun County
and a total of participants of 1,636.
in Shaanxi Province, Zhangbei County and Fuping County in Hebei
Province, and Xunwu County in Jiangxi Province in providing the
Taking on the problem, presented by the insufficient supply of differentiated
virtual tour service for their main scenic areas.
rural offerings in tourism, Fliggy has launched a rural tourism design officer
Fliggy "Digital Tutorial for Seeking Beauty" for Foping County
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Building talent and capacity for Bringing digital talents to rural areas
long-term rural development
Rural revitalization commissioners
Diverse, high-quality, and abundant talents can
be one of the important driving forces for rapid We select and provide talents to counties and
rural development, as well as the guarantee for villages in a targeted manner to help meet their
the sustainable development of rural areas. We specific needs. In 2019, Alibaba launched the "Rural
have systematically considered the demand for Revitalization Commissioner" program, dispatching
talent in rural revitalization and have provided experienced employees to underdeveloped counties
targeted support for rural talent revitalization. to more effectively align Alibaba's resources with
local conditions. In July 2022, Alibaba released the
We have mobilized talents from Alibaba, as well "Hometown Initiative 2022", announcing that it will
as others from across urban China, to join in rural continue to appoint experienced employees as
revitalization. By leveraging the opportunities rural revitalization commissioners to support local
afforded by development of industry, we have rural revitalization through industry, talents, and
invested in rural elementary and vocational technology. The "Rural Revitalization Commissioner
education, created job opportunities, and system" has become the core and golden card of
provided training to attract more talents to Alibaba's rural revitalization model.
participate in rural development. We have also
engaged in constructing digital villages to create As of March 31, 2023, Alibaba has dispatched 27
jobs and help villages retain local talents. "rural revitalization commissioners" to 25 counties
across China to empower poverty alleviation and
rural revitalization. This program has not only
Bringing digital talents to rural areas
boosted the development of industries in counties,
but also assisted in cultivating talents and improving
Cultivating talents for rural economic
their levels of digital and public services.
development

Expanding rural employment


27 Dispatched "rural revitalization Industry, talents, and technology constitute key elements
commissioners" tapped by our rural revitalization commissioners. Relying
on Alibaba's technological advantages, commissioners
have managed to promote the development of counties
by empowering industries and talents with technology
and inspiring further development of technology through
cultivating industries and talents, thereby promoting
positive interactions among the three elements.
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Alibaba’s rural revitalization commissioner team


was awarded the honor of Outstanding Team for
Contributions to "Sannong" (Agriculture, Rural Succession of "rural revitalization commissioners''
areas, and Farmers) in 2022 by the General Office The year 2022 marked the first year of the succession of "Rural Revitalization Commissioners". Born in 1990, Shangnian Wang, who took over as the second commissioner in Yijun, is the
of the Ministry of Agriculture and Rural Affairs and youngest in the program. He has modified the countdown card given to him by Liu to a "count
the Policy and Regulations Department of the Before leaving his post, Yahui Liu, the first commissioner in Yijun County, Shaanxi Province, up" card as he hopes to mark and cherish every day in Yijun. Wang expressed that his current
presented four gifts to his successor, including his assignment countdown card, which job is a complete break from his work before, with no clear KPIs or template, and requires him
National Rural Revitalization Administration. Two
he hopes to be passed down; a dialect dictionary recording the dialects used for daily to create a unique path.
female rural revitalization commissioners, Yunfei communications with the villagers and building trust; a list of villagers recording their names,
Liu and Donghong Lin, were awarded the honorary contact information, family information, and special skills; and an evaluation card recording The baton of rural revitalization is being passed down from generation to generation.
title of "National Women's Model for Making Great the advantages and disadvantages of different agricultural products and the support that is needed.
Contributions" by the All-China Women's Federation.

Donghong Lin

Part of ''Rural revitalization commissioners" team Yunfei Liu Alibaba’s rural revitalization commissioner team was awarded
the honor of Outstanding Team for Contributions to "Sannong"
(Agriculture, Rural areas, and Farmers) in 2022
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Rural technology officers Voluntary design officers


"Rural technology officer" turning century-
The lack of tech capabilities has been a bottleneck for old chestnut trees into ''money spinners'' Successful brand building requires design-
the development of rural counties and villages. We oriented thinking and professional skills, which
Chestnuts are a mainstay industry in Qinglong County, Hebei are not readily available in many underdeveloped
launched the "Rural Technology Officer" program in
Province, with over 2,000 ancient chestnut trees over 100 years
2021 to assist here. Shouldering greater responsibilities counties. We have launched the ''Voluntary Design
old. Chestnuts are delicate, soft, sticky, fragrant, sweet, and very
with further advanced technologies, we have nutritious. However, in recent years, many ancient trees in this county Officer" program to bring together internal and
dispatched rural technology officers to deliver technical lack effective protection. external designers and enable them to contribute
support, training, and digitized volunteer services to rural revitalization. In FY2023, based on "Seeking
Upon arrival at Qinglong County, Alibaba rural technology officer,
covering the protection of cultural relics, smart planting Lihui Hao, led his team to plan the "Century-old Trees Adoption Beauty in Rural Areas", voluntary design officers
and breeding, and inclusive education, leveraging Project", which enables consumers to adopt the “century-old golden initiated the "Preserving Beauty in Rural Areas"
technology for better solutions to practical problems in chestnut" via a mini-app on Alipay and get to know the history of the program, providing targeted support for cultural
ancient trees as well as the processes such as trimming, fertilization, protection and development in rural counties.
rural development.
and deinsectization. When chestnuts ripen in the autumn, those
who adopted trees can receive not only chestnuts and other local
As of March 31, 2023, over 220 technology officers have agricultural products, but also tickets for local travel spots and For more details:
Please refer to Chapter 5 Shaping brands in rural agriculture P155
been dispatched to 12 underdeveloped counties in 8 hot springs. This program has contributed to expanding sales of
provinces including Shanxi, Sichuan, Hebei, Qinghai, chestnuts while driving the development of tertiary industries such as
tourism. Furthermore, the team plans to launch an online shopping
Hunan, Shaanxi, Yunnan, and Jiangxi, to carry out
mall in the mini-app for Qinglong, aiming to present more local
digital volunteer services. These services cover various agricultural products to consumers.
fields including smart farming and animal breeding,
smart rural tourism, rural digital governance, and
inclusive technical education.
Digital collectibles3 contributing to preserving ancient rural cultures
Over 220
Rural technology officers
Preserving the historic cultural inheritance has been a great challenge for many counties and villages. These areas often have limited funds each year to sustain basic needs such as exploration,
restoration, and maintenance, and often lack effective means to promote their long history and splendid culture, which erodes their appeal over time. By leveraging national policies and their own
expertise, Alibaba's voluntary design officers have restored, reproduced, and protected historical cultural relics through digital collectibles.

Julu County in Hebei Province features one of the best-preserved ancient sites of the Song Dynasty. The voluntary design officer, He Huang, led a team to the local cultural bureau and museums with
the task of selecting cultural relics that were exquisite, collectible, and likely to resonate with users. They chose 4 pieces of Song dynasty porcelain for the initial batch of digital collectibles. When
restoring and reproducing one of the cultural relics, White Glaze Plum Vase with Black Dragon Pattern, to integrally reproduce the dragon pattern, the designers put in a lot of effort to search for
historical records of the Song porcelain, and also conducted thorough searches with the locals, in order to more fully understand the dragon pattern and supplement its details when building the
collection.

In September 2022, the digital collectibles of 4 pieces of Julu Song dynasty porcelains jointly reproduced by Alibaba Philanthropy and Taobao debuted on Taobao 88VIP. Consumers can redeem one
piece of digital collectible with their credits and donate RMB10 to support the preservation of intangible cultural heritage, wild animal protection, and other related efforts in the relevant county. We
have also replicated the Julu digital collectible model in more counties. As of March 31, 2023, we have designed and launched digital collectibles for Julu County in Hebei Province, Pingshun County in
Shanxi Province, and Foping County in Shaanxi Province.
Chestnuts in Qinglong County, Hebei Province

3 Digital collectibles are unique digital assets built on blockchain technology that provide proof of ownership and
enable the secure and transparent exchange, purchase, and collection of digital items.
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Cultivating talents for rural


economic development
"Rural Live-streaming Program" Contributing to the construction of talent
We have supported rural residents to learn skills developing talents for rural revitalization training bases
related to the digital economy by means of The "Rural Live-streaming Program", launched in 2019, We have established a batch of e-commerce talent training bases in rural areas, training talent for rural revitalization.
online training and offline incubation, helping features integrated high-quality resources in e-commerce
them to earn stable income while staying in their and aims to guide farmers to income through live- In January 2022, we collaborated with Xinyi City, Guangxi Zhuang Autonomous Region in establishing a local talent training base,
streaming on their mobile phones. which is planned to cultivate 3,000 talents on an annual basis in positions such as live streaming, e-commerce, and marketing. As of
hometown.
March 31, 2023, the base has delivered 20 courses for 2,500 participants.
In July 2022, the "Rural Live-streaming Program" officially
Online, as of March 31, 2023, our rural talent launched the Farmers Competition and cooperated In September 2022, we cooperated with Zhaotong City, Yunnan Province to establish a live-streaming talent training base, which is
training product "Digital Training" has provided with multiple parties to launch live-streaming training expected to provide comprehensive e-commerce live-streaming courses for local governments, enterprises, and entrepreneurs and
content in e-commerce, livestreaming, short for marketing agricultural products and live-streamer develop one qualified live-streamer for each of the 1,402 villages in Zhaotong City. As of March 31, 2023, the base has delivered 20
competitions. The event covered over 1,000 counties courses for 2,500 participants.
videos and expanded to 151 counties across
across China and attracted and trained 13,000 farmer
China, with over 700,000 participants. We have In 2022, we established rural revitalization schools in Longnan City of Gansu Province and Cangxi County of Sichuan Province. Both
live-streamers. Furthermore, the platform launched
further developed offline public service centers "Screening Talents for Agriculture" and "Nurturing Talents schools have delivered one-month training courses on new media, assisting local vocational students in improving skills for short
in some counties to help local e-commerce for Agriculture", to more fully apply the promotional role of videos, live streaming, and e-commerce. As of the end of March 31, 2023, the colleges have trained a total of 235 students.
industries form agglomeration effect. the platform economy to rural revitalization.

As of March 31, 2023, the platform has 110,000 farmer


We have also built a digital economic regional
live-streamers registered from more than 2,000 counties
talent training base. As of March 31, 2023, there across China. Live-streaming has helped increase
has been 77 bases built with regional partners their monthly income two to three-fold. The “Rural
and 1,200 classes held, covering 190,000 Live-streaming Program” has on average enabled
participants. each live-streamer to create two jobs, empowering a
combined 200,000 people to become better off through
employment.

Alibaba farmer live-streaming


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Expanding rural employment


Alibaba has provided job training and opportunities "Star Plan" creating digital job "Wig industry" enabling women to "Caring Maternity Matron" empowering
for rural residents that work with the supply and opportunities for rural young people work at home women with new skills
demand situation of rural talents. In particular, more "Star Plan" is one of Alibaba’s signature initiatives AliExpress has organized domestic wig manufacturers to establish In July 2022, with the support of Alibaba Philanthropy
specialized training services have been provided in creating local digital job opportunities by community plants in economically underdeveloped areas. This and maternal and infant product merchants on Tmall,
integrating e-commerce business scenarios and initiative aims to create "internal circulation" within the wig industry the "Caring Maternity Matron" program under the China
for women in FY2023, assisting them to earn stable
local talents. As of March 31, 2023, "Star Plan" has value chain, stabilize business production and operations, and Foundation for Rural Development (CFRD) has provided
incomes locally or helping them gain new skills to extended its footprint to 44 districts and counties address worker recruitment challenges. At the same time, it actively vocational skills training, employment guidance, and
work in cities. in 14 provinces and provided 16,368 direct job expands employment opportunities and income channels for rural continuing education for rural women, empowering
opportunities, thereby enabling rural young women by providing local job opportunities. As of March 31, 2023, women with new skills. All "Caring Maternity Matrons"
people to enjoy a good job and a better life in their wig community plants have established their presence in 4 counties, trained by the program took and passed the national
hometowns. including Zhangbei County of Hebei Province, Yijun County of vocational qualification examinations, gaining the
Shaanxi Province, Qingjian County of Shaanxi Province, and Ping'an respect and trust of employers with their highly
"Customer Service County" is one of the models District of Qinghai Province, and has recruited and trained a total professional and considerate services.
under "Star Plan" to assist counties in driving of 469 female workers. In particular, Zhangbei County has signed
production and consumption and boosting cooperation agreements with enterprises in the main production
development vitality. To facilitate the return of talent areas of hair products across China to help women look for job
to their hometowns and attract labor-intensive opportunities that allow them to work at home.
industries, this model sets up customer experience
centers in districts and counties, which provides
digital service talent cultivation and working
opportunities.

Female workers in wig community plants producing wigs "Caring Maternity Matron"training

Expanding rural employment


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Energetic rural residents and Strengthening and expanding rural


communities elementary education Teaching programming in remote areas - little technology
officers with big technology dreams
To promote rural social development and jointly build In an era of rapid digitalization and quality
To contribute to building a high-quality education system, boost educational equity, and promote balanced development of
vibrant, inviting, and beautiful rural communities, education becoming critical, underdeveloped compulsory education and urban-rural integration, Alibaba has launched the "Little Technology Officers with Big Technology
efforts have been made in multiple dimensions, areas have the urgent need of improving school Dreams” program. With the full support and cooperation of the Ministry of Education of Lancang Lahu Autonomous County
including elementary education, rural culture, infrastructure. Alibaba has introduced technology and the principal of Donghui Town Central Primary School in Yunnan Province, the program has successfully brought intelligent
healthcare, and community governance. resources and capabilities to rural areas, and is programming courses and four-wheel drive activities into this school in the remote mountains. The low-code programming
platform developed by Alibaba has enabled children to engage in hands-on practice in a manner that is educational and fun.
actively exploring innovative solutions to strengthen
Strengthening and expanding rural and expand rural education and help rural areas
Rural aesthetic education program "Hello My Classmates"
elementary education narrow the education gap.
The Alibaba Design Philanthropy Committee has launched the rural aesthetic education program, "Hello My Classmates",
which enables Alibaba designers to gather talented college students across China majoring in design to guide rural children
Promoting the protection of rural culture
to observe beauty in life and enlighten their aesthetic cognition and cultivate their creativity, imagination, and perception.
"Cloud for Youth" program – making AI
Improving rural healthcare more lovable In 2022, the program launched an art education course design competition for college students, engaging more than 500
teams consisting of college students with compassion and design skills from over 120 colleges and universities in China,
Modernization of rural governance and Since October 2021, Alibaba has launched the "Cloud for Youth" and selected 16 art education courses customized for rural children. As of March 31, 2023, the program has introduced art
education courses to 889 classes in rural schools across China, bringing aesthetic enlightment to rural children.
service systems program, boosting inclusive education through fair tools to inspire
children’s digital creativity at an earlier stage. During the program,
we have cooperated closely with non-profit organizations such
as China Education Development Foundation as well as local
educational departments, realizing the construction of an exclusive
cloud learning classroom with high-speed network in 15 days,
even in rural areas. As of March 31, 2023, the program has been
implemented in 102 schools in China, allowing more than 60,000
rural primary and secondary school teachers and students to use
exclusive cloud computers with elastic computing and AI capabilities.

In the cloud teaching space, teachers and students in rural areas are
both beneficiaries and creators. It combines AI to music, art, craft,
robotics and other specialties across disciplines. Courses can be
shared between schools via the Internet, even if they are thousands
of miles away. Currently, 43 school-level special courses have been
included in the cloud teaching space. The “Cloud for Youth" program
has been focused on by the UNESCO Chair on Artificial Intelligence
in Education. UNESCO and Alibaba would, base on the experience
in China to explore the equalization of global AI education, enabling
more children to gain a more advanced computing ability. Bring aesthetic enlightenment to rural children
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Promoting the protection of rural culture

The protection and inheritance of local traditional of Sichuan Province on Yi Embroidery, Ping'an
culture are crucial for the maintenance of rural District of Qinghai Province on Qing Embroidery,
vitality. In addition to "Seeking Beauty in Rural Areas" and Pingshun County of Shanxi Province on Wood
and "Preserving Beauty in Rural Areas", Alibaba has Carvings. Alibaba has continued to bring orders,
brought new opportunities for the protection of technical training, and other supports to assist over
intangible cultural heritages to more regions through 100 intangible cultural heritage craftsmen in earning
our platforms. stable incomes while carrying on old handicraft
traditions.
Alibaba Philanthropy has promoted intangible
cultural heritage merchants on Taobao to establish
order-based cooperation with Liangshan Prefecture

The Inheritance and innovation of


intangible cultural heritage: Qing
Embroidery

Qinghai traditional folk embroidery ("Qing Embroidery"),


an old embroidery style in Qinghai Province, is a handicraft
skill passed down through generations among women
from all ethnicities with a long history, rich variety, and
meticulous techniques. Many Qing Embroidery works have
been selected for the national and provincial intangible
cultural heritage list. Alibaba and local embroiderers fuse
traditional Qing Embroidery with creative cultural products.
With the establishment of the Qinghai Qing Embroidery
Digital Headquarters in Haidong City, the Qing Embroidery
cultural industry has reached a new large scale and multi-
party state, enabling Qingxiu to move from offline to online
and from Qinghai to the world.

Qing Embroidery
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Improving rural healthcare

To boost and ensure rural vitality, well-functioning the underdeveloped regions of China. Some 886 created a learning platform with Alibaba Health, Moreover, Alibaba Philanthropy and the Amity
primary health care services are essential. On the qualified children have entered into the aid program. providing quality medical training content, Foundation have teamed up to launch the "Alibaba
one hand, we provide direct assistance to rural areas In FY2023, "Xiao Lu Lantern" continued to expand online communication with experts, and remote Rural Health Plan" to improve the standard of
with our own medical and health care capabilities on the existing "Active Assistance" mode. For genetic consultation. As of March 31, 2023, a total of 14,002 care in rural regions, with villagers as the core,
while working to improve the local medical predisposition illness, the project provides precise local doctors have gone through training, including village doctors as carriers, and communities as
equipment base and medical talents capabilities. medical services. In addition, "Xiao Lu Lantern" 3,744 who specialize in cardiovascular intervention. the foundation. The program builds village clinics,
has conducted four rounds of preventative health In March 2023, Alibaba Philanthropy and Alibaba provides medical devices, and trains rural doctors
"Xiao Lu Lantern" was jointly initiated by Alibaba screening for schools in rural counties supported Health worked with the China Association of County to improve the three levels in the rural healthcare
Philanthropy with Alibaba Health and other by the local education bureau, and has provided Hospital President Collaboration Alliance to hold the system, hence raising the level of basic medical
authoritative charity organizations to provide specialist screening of county boarding school first county hospital president training classes. These care and boosting sustainable development of rural
assistance with medical expenses and medical students for risk of congenital disorders, and offered leaders play an essential role in the development of healthcare.
support in underdeveloped regions. As of 31 March assistance for screened children. county hospitals. The classes have covered hospital
2023, "Xiao Lu Lantern" projects have invested RMB17 operations, specialty capacity building, hospital
million to conduct 37 free medical consultation To facilitate the capability development of rural development planning, and organizational culture.
sessions covering 31 counties in 15 provinces across medical expertise, Alibaba Philanthropy jointly

"Alibaba Rural Health Plan" providing medical devices for village


clinics, empowering the improvement of basic medical services
Located in the northwest of Fuping County, Hebei Province and 50 km from the county seat, Shitandi Village,
Wuwangkou Town is a village in remote mountain areas, where most villagers are the left-behind elderly. For quite
some time, the shortage and aging of the medical devices have prevented local doctors from further diagnosis and
screening of patients and are prone to inaccuracies, negatively impacting patient evaluations and treatment.

In 2022, during Phase II of the "Alibaba Rural Health Plan", we donated a series of medical devices to 13 village
clinics in Fuping County, including Shitandi Village Clinic, and we also renovated 76 village clinics in Fuping County.
Sphygmomanometers, portable electrocardiographs, and other donated devices have helped local doctors get
accurate data, better understand the causes of diseases, and provide more effective and timely medical services for
the elderly. The devices donated feature improved portability to facilitate follow-up visits and home visit diagnostic
services to ensure better healthcare for local villagers.

"Xiao Lu Lantern" project County hospital president training class


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Modernization of rural governance and


service systems
"Easy to Handle" (JuHaoBan) contributing to building Dunhuang City's "Three-in-One" platform promoting the development
a digital county of rural digital economy
The modernization of rural governance is a necessary means for
rural revitalization. With the rapid social and economic development In December 2020, DingTalk and the People's Government of Julu County, Relying on the DingTalk system and empowering production, supply and marketing, credit system
and continued urbanization, the rural social structure has witnessed Hebei Province reached cooperation on the smart platform "Digital construction and other links by digital means, Alibaba has supported Dunhuang City, Gansu
Julu". It has made the country digital and able to provide better public Province to build a "Three-in-One" digital platform integrating 21 service resources in 7 categories,
profound changes, and the demands of rural residents have become
services to the people. The digital platform "Easy to Handle" (JuHaoBan) including agricultural production, agricultural materials supply and marketing, education and
further diversified, necessitating more innovative and modern rural solves problems from "top to bottom", which makes online public sector medical care, e-commerce, and agricultural information, and actively guided more than 53,000
governance. management among towns, departments, and residents in Digital Julu a people (over one quarter of the permanent population) to register and activate the application
reality. digital platform, with an average daily active user rate of more than 17,000, thus promoting the
Using DingTalk's advantages in digital organizational management development of rural digital economy in Dunhuang City.
In 2022, we kept improving the technology and functionality of our
and coordination, we have established a "To All People" feature
platform. We upgraded and optimized Collaborative Governance and
in DingTalk that consists of "Resident Contact List" "Collaborative Resident Services, and added or enhanced 27 applications. As of the end
Emergency Response" "Public Feedback" and other tools to achieve of 2022, the platform has resolved over 470,000 public appeals, closing
online, specific, and timely public services for the people. We use cases in 3 to 5 days on average, with an average completion rate of
digital means to overcome four major difficulties in rural governance, 96.53%. Furthermore, the activity of public service users and the utilization
rate of residents have been significantly increased.
including better management of people served, raising motivation,
the low cohesion of village collectives, and the "last mile" issue in The platform has been selected as one of the fourth batch of
government services. As of March 31, 2023, the program has covered representative rural governance cases by the Ministry of Agriculture and
more than 10 counties. Rural Affairs, with which Julu has been awarded honors such as the Top10
digital ecosystem counties of Hubei Province and IT innovative cases of
rural Party building “Advancing Towards a New Journey and Contributing
to a New Era”.

2022 Apsara Conference: Sanxingdui VR Show

Modernization of rural governance and service systems


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Community resilience through digital technology


In the post-pandemic era, while economic growth is recovering, to gain opportunities for longer-term sustainable development.
society continues to face new challenges. The impact of climate First, we ensure the resilience of our core systems in times of crisis,
change has been increasingly significant, and extreme weather so that we can support the normal operation of the digital business
events such as flooding, droughts, heat waves, and fire hazards have ecosystem, which relies on our services, and to better support society
become a "new normal". Building high resilience and strong risk after shocks from public health and natural disaster crises.
management capabilities is an ever more pressing need for society.
Second, we actively coordinate our platform ecosystem and
Alibaba's three pillars of “Technology, Social responsibility, and resources to aid in disasters.
Stakeholder ecosystem” can be implemented by ensuring the
“Digital-Circular-Economy”. We fully leverage our digital capabilities Third, we work with stakeholders to develop joint solutions and
and platform ecological advantages to enhance social resilience enhance broader, durable societal resilience, developing a host of
in three dimensions to better respond to the uncertainties brought relevant technologies and sharing them widely.
about by major risks of public health crises and natural disasters, and
Operations and Responding systematically to public
platform resilience health crises and natural disasters

Community resilience through digital technology


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Operations and platform resilience Rooting resilience in the fundamental capabilities of cloud computing

We insist on the establishment and improvement Only by maintaining our own business resilience can and resilience in cloud services. We also continuously global risk identification and emergency drills, and
of the large-scale commercial infrastructure system it be possible to help society when needed. We aim to promote the application of high standards and constructed a digital management dashboard
in the digital era and carry out technological achieve high stability and resilience in cloud services specifications in the industry. to quantitatively manage risks and continuously
innovations and applications in response to through a comprehensive process of site selection, enhance operational stability across all areas.
extreme events, ensuring the stable operation, rapid design, construction, operation, maintenance, and In FY2023, to comprehensively enhance operational
response, and effective recovery of cloud computing new construction, aiming to achieve high stability stability, we upgraded risk management, conducted
and digital logistics systems in emergencies or crises,
and securing the normal operation of the business
ecosystem and social economy.

Rooting resilience in the fundamental


capabilities of cloud computing

Logistics Resilience
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Logistics resilience Improving the resilience of our operation

Alibaba has integrated digital technology Both natural disasters and pandemics can impact solutions and international freight services, focusing pools. With the help of Alibaba Cloud's online
advantages and supply chain capabilities to build the operation of personnel-intensive logistics on air freight, sea freight, first-haul trailers, overseas storage and big data computing engine, the Aoxiang
a comprehensive emergency logistics system, centers, which, in turn, affects the efficiency of warehouses, and end-to-end supply chain. Cainiao platform has achieved the capability to update the
including disaster preparedness management, goods circulation within society and poses risks to has collaborated with over 60 ports worldwide to inventory and basic information of millions of goods
emergency transportation and transfer allocation. economic production and residents' livelihoods. establish intelligent customs clearance systems. Its per second.
We collaborate with all parties to respond to sudden We have made preparations for various risks in the container collection trailers cover seven core ports
disaster events. construction, operations, and personnel training and terminals across China. Cainiao accelerates Based on objective data, the Aoxiang platform
of the logistics system. While ensuring our own the construction of overseas local capacity building calculates the estimated delivery time from the
operations, we strive to maintain the efficient flow of to provide end-delivery service for cross-border inventory side to the consumer side and transmits
goods. Cainiao has formed a comprehensive end- parcels. As of 31 March 2023, the number of overseas the reliable fulfillment time to the consumer side at
to-end logistics capability. distribution centers has reached 15. each node of the consumer's shopping decision,
such as searching, shopping guides, product details,
In our daily operations, Alibaba establishes an order pages, etc. The Aoxiang platform detects
emergency management system according to real-time abnormal conditions that lead to delivery
the level of various natural disasters (such as
earthquakes, typhoons, and rainstorms). Through
70
Cainiao warehouses
15
The number of
failures, and unreachable routes, providing an
early warning to consumers before and after they
employee training, Alibaba teams strive to protect in places of origin overseas distribution
place orders based on real-time socialized logistics
centers
employee safety in emergencies and aid the data, improving the consumers' experience in
community and society. terms of certainty of shopping timeliness. During
Improving the resilience of our platform the pandemic, the Aoxiang platform collaborated
In the domestic supply chain business, Cainiao with merchants on timeliness services to inform
provides end-to-end supply chain services in Together with our partners, Alibaba is working to consumers that delivery time may be delayed and
accordance with various service standards for build a logistics network with global coverage. On parcels may be returned due to the pandemic
merchants with domestic sales and contract-fulfilling this basis, we strive to connect logistics in more in a timely manner, reducing the return rate and
needs. The domestic warehouse area exceeds 10 countries and regions through digital intelligence giving consumers peace of mind when buying
million square meters, bonded warehouse area technology, which not only enhances our resilience and receiving goods and ensuring the certainty of
exceeds one million square meters, and more than as a company, but also enhances societal resilience platform performance under pandemic conditions,
70 Cainiao warehouses in places of origin have been in response to unpredictable disasters. In FY2023, hence enhancing the logistics resilience of the
established in more than 30 industrial zones. Alibaba built the Aoxiang ecological supply chain platform.
platform, linking the merchant management system
In the international supply chain business, Cainiao and the warehouse allocation capacity, and realized
focuses on merchants with overseas sales and the digitalization of Taobao and Tmall merchants'
fulfillment needs, providing essential supply chain billion-level orders and ten-million-level product
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Improving our logistics resilience

Cainiao has integrated its own advantages and capabilities to build an emergency Cainiao is building the first domestic full-link digital Cainiao and United Nations World Food
logistics system, including disaster preparedness management, emergency transportation, management system for charity supplies Programme (WFP) signing cooperation
transfer and allocation, and collaborated with all parties to respond to unexpected
disaster events. Cainiao has adopted the mode of "free transportation in emergencies and When an emergency occurs, many charity organizations In March 2023, Cainiao and the United Nations World
cost price transportation in normal times” and has reached key cooperation with many face the challenge of transporting relief supplies from all Food Programme (WFP) signed a global logistics
charity organizations and government agencies. Cainiao has also undertaken many tasks over China to the frontline in a timely, safe, and efficient cooperation agreement in Rome, Italy. The two parties
such as international transfer of COVID-19 vaccines, pandemic prevention goods and daily manner, and distributing them to the citizens in need in an have agreed to develop a strategic cooperation for 3
necessities distribution. As of March 31, 2023, Cainiao has delivered more than 300 million orderly manner. Through its mature supply chain capabilities, years in the areas of global humanitarian emergency
pieces of medical and other supplies to more than 150 countries and regions worldwide. Cainiao has built an emergency logistics system with operations and improving supply chain capacity.
charity organizations and launched the first digital whole- This is the first time a Chinese logistics company has
In the 2023 Asia-Pacific Stevie Awards, Cainiao won the Gold Award for Innovation
process tracking system to carry out charity logistics services, become a global logistics partner of the WFP. Cainiao
in Transportation and Logistics and the Silver Award for Innovative Achievement in
realizing the integrated services of donated materials from will leverage its global logistics network to help the WFP
Corporate Social Responsibility based on its innovative achievements in digital intelligence
manufacturers' collection, sorting in warehouses, cross- shorten response time in emergencies and improve
technology and ESG initiatives. Cainiao is the only Chinese logistics company to win this provincial transfer, multi-point distribution and end sign-up, the efficiency of its global supply chain to deliver aid
year's Stevie Awards. with the whole process visualized and tracked online, which to more people in need. Cainiao willImprovingalso our
support
logistics resilience

has helped charity organizations' digital upgrade and helped humanitarian and emergency aid around the world
them tackle challenges in transportation and distribution. In through its 15 large sorting centers covering the world,
addition, Cainiao has also assisted One Foundation and other logistics hubs in Europe and Southeast Asia, and
charity organizations to open special lines for helping the logistics capabilities in Brazil, North America, and the
elderly and other underserved communities and has provided Middle East.
diversified distribution of "the last mile" in emergencies
through Cainiao Direct Delivery (Cainiao Express), Cainiao
Global logistics
Posts, and its autonomous delivery vehicles.
partner
Become a global logistics partner
As of March 31, 2023, Cainiao has deeply cooperated with of the WFP
28 public welfare and charity organizations and institutions,
including China Rural Development Foundation, Shenzhen
One Foundation for Public Welfare, and Amity Foundation,
building an emergency logistics system together.

28
Deeply cooperated with public
welfare and charity organizations
and institutions
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Responding systematically to public Deploying digital technology for


health crises and natural disasters pandemic relief Alibaba Health offering free pandemic Amap launching the online "Drug Public
medical training for rural doctors Welfare Mutual Aid" platform and "Nucleic
Digital platforms are important drivers and anchors Alibaba has always focused on meeting the needs To help county hospital doctors and rural medical
Acid Test Map"
of a well-functioning economy, from responding to of people's livelihoods and supporting the economic personnel improve the diagnosis and treatment In order to alleviate local shortages of anti-pandemic
the COVID-19 pandemic to reducing disaster risks, recovery from pandemic prevention and controls. On of COVID-19 infections, Alibaba Philanthropy and drugs and supplies, Amap and Alibaba Foundation
helping disadvantaged individuals, and empowering the one hand, we leverage the advantages of digital Alibaba Health teamed up with experts from the released the new "Drug Public Welfare Mutual Aid"
and connecting social organizations across the technology and our platforms to keep society and the respiratory departments of Beijing Ditan Hospital platform and the "Drug Purchase Mutual Aid" function,
spectrum. We are constantly exploring innovative economy running smoothly. On the other hand, Alibaba Capital Medical University, the First Affiliated Hospital which aggregates the mutual aid information of users
sees the comprehensive digital transformation of the of Harbin Medical University, Renmin Hospital of on the map and puts the information of pandemic
and sustainable solutions with our partners to
Wuhan University to record videos of professional supplies from pharmacies on the map in real time to
enhance social well-being on a broader scale. economy and society as an opportunity to help MSMEs
instructions on notes for antigen testing, self-health resolve the demand for drugs through mutual help
to overcome challenges while stimulating new demand
testing during fever, and protection, medication and between people.
Deploying digital technology for and creating new supply. rehabilitation guidance for special groups (the elderly,
pandemic relief pregnant women, children). They were released To serve the nucleic acid testing work in various cities
Consultation and medical supplies through Alibaba Health's training platform for rural and facilitate users to check the distribution of nucleic
Deploying digital technology to guarantee doctors. In addition, Alibaba also joined hands with acid sampling stations nearby with navigation, Amap
enhance social capability in disaster authoritative institutions and experts across China released the function of "Nucleic Acid Test Map'', where
In FY2023, we made full use of our to provide free online training on clinical diagnosis
mitigation and relief users can enter this product interface by searching
digitalization, material allocation, and logistics and emergency management skills for county-town- "Nucleic Acid Test Map" on the homepage.
capabilities to help those in need in an village rural doctors and medical personnel.
organized and smooth way to tide over the
Alibaba Health launching a 24-hour Cainiao providing international supply chain
pandemic. In rural areas where the overall
free medical consultation platform for and professional pharmaceutical cold chain
level of medical development is especially low, COVID-19 with stability and safety
Alibaba actively provides medical supplies and
In December 2022, to leverage the advantages of Cainiao leveraged over 50 global logistic service
medical consultation services for rural residents
Internet medical services, Alibaba Health launched providers to serve more than 150 countries and
and offers training services for rural doctors. the "Peace of Mind Action" and joined hands with regions globally in the distribution of pandemic
Alibaba Foundation to set up a platform on Taobao relief aid. Besides, Cainiao shipped more than
for free medical consultation for COVID-19. The one million doses of Chinese COVID-19 vaccines
platform caters to seniors, children, pregnant women, through our professional pharmaceutical cold
and adults and offers 24-hour online COVID-related chain capability to El Salvador, Trinidad and
consulting services provided by doctors from public Tobago, Kuwait, Suriname, and other countries in
hospitals. The Alibaba Foundation has covered all Asia, Africa, and Latin America.
consultation costs and provided all the necessary
resources for all doctors involved, relieving the
pressure on rural medical services.
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Enhancing Community
Inclusion and Resilience

Ensuring necessities

Alibaba‘s digital business covers a wide range of areas that are resilient, which enables our
capability to ensure rapid access to life's necessities in multiple areas.

Tiding over difficult times


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Inclusion and Resilience

Helping MSMEs to tide over difficult times

One key focus of Alibaba is to help MSMEs operate to help society maintain effective operations, while Fliggy unveiling “Hi, Tomorrow” project Alibaba.com launching ten relief measures
effectively amid the pandemic, promote domestic Fliggy and Alibaba.com support merchants to to revitalize tourism industry to help foreign trade merchants receive and
e c o n o m i c re c o v e r y, a n d h e l p c ro s s - b o rd e r improve their operations by providing guaranteed complete orders
On December 12, 2022, Fliggy launched the "Hi, Tomorrow"
enterprises to go global. DingTalk provides technical initiatives.
project with 17 measures to support tourism revitalization,
support for remote work in enterprises and schools which includes: Launching graded business cooperation In order to help small and medium-sized foreign trade
methods according to the different needs of different merchants cope with the phase challenges brought by the
types of merchants in development stages, supporting global pandemic, in March 2022, Alibaba.com officially
them to revive their business on the platform in ways such launched ten relief measures to overcome the difficulties
as retailing, purchasing and selling, and supplying and in international trade, including securing business
selling, especially to reduce the operational difficulties for opportunities, logistics, financial protection, service
new, small, and medium-sized businesses; Continuing protection, and talent protection, which covers all key
and expanding a series of fee-waiving measures and aspects of international e-commerce, and helps foreign
investing resources free of charge to support merchants to trade merchants to better address risks.
improve their business conditions; Helping destinations to
explore cultural tourism consumption highlights and boost
consumer confidence.

Helping MSMEs to tide over difficult times


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Inclusion and Resilience

Deploying digital technology to


enhance social capability in disaster
mitigation and relief
Leveraging digital technology advantages to actively build “Smart Emergency Response”
Cooperating with the Ministry of Emergency Management, we closely integrate the development needs of national emergency management modernization with our digital technology advantages to
Alibaba utilizes diversified digital products and
promote data intelligence analytics and insights gathering, and transformation in emergency management. Since 2019, Alibaba Cloud has been actively involved in the digital upgrade of the Ministry of
services to facilitate smooth communication in Emergency Management. The following graph shows our annual progress.
disaster management, and secures supplies in the
process of disaster mitigation and relief.

Alibaba deeply engages in the research and


development of emergency disaster mitigation
technologies and actively participates in national
basic capacity building. In recent years, products and
services of Alibaba have been widely used in major
natural disasters, and have played an important
role in gathering resources and maintaining smooth
information communications.

In FY2023, Alibaba Cloud took advantage of digital technologies to facilitate the Ministry of Emergency Management in conducting natural disaster rescue operations. In the Lushan and Luding
County earthquakes, the related system of emergency management data intelligence platform, jointly developed by Alibaba Cloud, helped the Ministry of Emergency Management in disaster
analysis and decision-making.

Additionally, Guiyang Cloud Platform constructed for the Ministry of Emergency Management by Alibaba Cloud provided support for the 4th Emergency Management Public Law Knowledge
Contest held online.

Co-building a digital rescue platform with the Red Cross


Alibaba Cloud supports the Chinese Red Cross Foundation to build the "Digital Rescue Platform for Social Emergency". Using Alibaba Cloud's packaged R&D mode of capabilities tool platform, Yun
Qiao, enterprise collaborative services, and DingTalk’s digital management technology, it has transformed rescue team organizational and daily management into an online mode, thus achieving
the visualization of the lifecycle of emergency relief missions, improving the professional capacity of the community rescue team and compliance operations, effectively supporting rescue
operations, and improving rescue efficiency and quality.

Deploying digital technology to enhance social


capability in disaster mtigation and relief
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Facilitating participatory
philanthropy
The foundation of sustainable development is establishing and spreading virtuous
intention between people, and harmony between people and nature. As a builder of a
sustainable community, we strive to unleash the power of technology to bring people
together to tackle our common challenges. We seek to foster a participatory philanthropy
that starts with our own employees and penetrates into the design of each of our
businesses to "make it easy to do good anywhere" within and beyond the confines of our
business.

We facilitate philanthropies through three aspects:

● Philanthropicparticipation of all employees P176


● Technological innovations for social challenges P180
● Connecting ecological forces to empower charitie P183
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Technological innovations for social challenges Employee philanthropy

250,144 hours Over 110


The total number of employee voluntary service More than 110 active "Hugs and Help" groups have initiated

First rare disease treatment map hours is 250,144 more than 1,000 activities, and motivated more than 30,000
employees to participate in philanthropic activities

Alibaba Health has released the first rare disease treatment


map in China

118,746 Facilitating Participatory


Self-developed smart screening tool for Alzheimer's disease
using AI technology has helped screen 118,746 seniors
Philanthropy

Over 100
The "Green Code" platform builds a bridge between charitable
organizations and developers, supporting the digitalization of
more than 100 charitable organizations

Platform philanthropy

RMB 399 million 2.04 million 11,722 2023 Philanthropic Enterprise


Alibaba has donated RMB399 million In FY2023, “Goods for Good” project The "Daily Positive Energy" program, with ten Alibaba was awarded the "2023 Philanthropic Enterprise"
to the Alibaba Foundation attracted 2.04 million merchants and 470 years of devotion, has given positive recognition
million users to participate and encouragement to 11,722 people
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Philanthropy

Philanthropic participation
of all employees
With a strong sense of empathy and social responsibility, to participate in, and to make the best use of their
we strive to create a corporate culture that encourages knowledge, skills, and creative thinking in tackling social
everyone to participate in philanthropy. By designing challenges beyond commerce.
innovative mechanisms and providing diverse resources
and options, we seek to inspire and help our employees

Creating a corporate culture Supporting employees to lead


of philanthropy our philanthropy

For me, philanthropy means constantly building up capabilities


to help others throughout one’s whole life… It may sound like
1 2 a cliché, but if I really do commit to it for a lifetime, a great
sense of ease will come to me when I get older.

– Xiaofeng Shao, Alibaba Partner


Philanthropic participation of all employees
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Philanthropy

Creating a corporate culture


of philanthropy Two-hour-a-day, turning charity into a Overseas employees contributing to their
‘super sideline’ community voluntary services
Since our founding, Alibaba has been committed
Jun Liu from Cainiao clocked in with the most voluntary Petra Stocklemayerova is our charity professional in Alibaba’s
to building a company that brings warmth to services among all Alibaba employees in FY2023. He devoted London office. On two weekends each month, she oversees
those in need. By marshalling the contributions of 687.7 hours of services, around an average of 2 hours every a food collection point outside a local supermarket - where
each individual, we create larger value for society. day. people donate food such as pasta, rice, canned foods,
Philanthropy is a cornerstone of Alibaba and a vital and toiletries - for distribution to people in need. She also
Since 2019, Liu has provided guidance and consultation encourages and guides colleagues in our London office to
bond that links all employees.
services for the elderly and children through medical engage in community voluntary services, to reduce food
assistance activities. For two years, he regularly provides waste and raise awareness.
On September 10, 2015, we launched the "Three breakfast service to seniors over 70 and to sanitation workers.
Hours for a Better World" initiative, inspiring every As an enthusiastic member of the GoodGym community,
Alibaba employee to turn the pursuit and aspiration In April 2022, Liu launched the Orange Heart Medical Petra is a passionate believer in their motto "Do Good, Get
Assistance "Hugs and Help" group, and attracted more Fit". She encourages fellow fitness enthusiasts to carry out
of philanthropy to actions. We encourage employees
Alibaba employees to join in voluntary services, providing exercise activities in local communities while providing help
to organize "Hugs and Help" groups, and undertake help for the elderly and the medical professionals through to seniors in those communities. The senior citizens are
philanthropic activities in a systematic manner. medical assistance, community services, and PCR and called "coaches", as they motivate our employees to exercise
antigen tests for COVID-19 pandemic. As of March 31, 2023, Carpooling "Hugs and Help" Group Petra Stockelmayerova while sharing their own experiences and lessons.
In FY2023, more than 110 active "Hugs and Help" the group has organized more than 150 events and helped
1.26 million person-times.
groups1 launched over 1,000 activities, in which Carpooling “Hugs and Help” Group
over 30,000 employees participated. These "Hugs
On February 14, 2014, a group of considerate Alibaba car
and Help" projects mainly focus on areas of nature
owners – with the help of Alibaba technology volunteers
and environmental protection, animal protection, – established a Carpooling "Hugs and Help" group which
education, and care for the disadvantaged. could decrease carbon emissions in commuting. Carpooling
establishes closer ties between colleagues from different
In FY2023, our total voluntary service hours among departments and create a new form of charity. Alibaba
campuses support the initiative by reserving more than
the formal employees2 amounted to 250,144 hours.3
400 parking spaces for carpooling, and some campuses

250,144
have set up "Care Stations" for carpoolers. To encourage
carpooling, every time car owners complete a carpool ride
hours
with colleagues, they receive coupons which give greater
Total voluntary service hours among the
preferences in our periodic parking space lotteries. Over the
formal employees
past nine years, tens of thousands of Alibaba car owners
have provided free carpooling for more than 500,000

Over 110
Active "Hugs and Help" groups
colleagues. In FY2023, over 8,000 car owners provided over
118,000 rides, bringing a green and caring commuting
experience.
Jun Liu is providing medical assistance Petra Stocklemayerova (left) is collecting food donated by people

1 The "Hugs and Help" groups that facilitated employees to participate in philanthropic activities in FY2023.
2 The scope of the statistics includes the full-time employees in the businesses directly managed by Alibaba Group.
3 Voluntary service hours include hours employees declared in areas such as environmental protection, children's education, senior care, community service, poverty alleviation, technical services, blood donation and other voluntary services.
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Philanthropy

Alibaba insists on fully recognizing and rewarding


philanthropic activities, providing long-term support
and encouragement for the philanthropic endeavors
pursued by our employees. In 2017, the "Alibaba
Charity List" was set up to recognize and reward
outstanding internal teams, individuals, and projects
that have made significant contributions to the
public good. This is one of the most prestigious of
our annual employee awards.

The 2023 Alibaba Charity List

The 2023 Alibaba Charity List was unveiled on


March 3, where 10 "Most Socially Insightful" "Most
Socially Influential" and "Most Technologically
Innovative" projects were selected by more than
1,600 employees, external stakeholders, and
professional judges. In addition, 14 Alibaba
4
employees, alumni , and partners were awarded
"Charity Stars" of the year. Intime and Alibaba
Health were awarded as the "Outstanding Charity
Groups" of the year.

March 3 each year is not the end point but a new starting point for Alibaba employees to participate in philanthropy. With environmental, social
and governance (ESG) being an important social responsibility strategy of Alibaba, and employees' participation in philanthropy constituting an
important part of ESG, Alibaba’s philanthropy undertakings enhance the overall development of Alibaba as a company.

- Daniel Zhang, Chairman and CEO of Alibaba Group

The 2023 Alibaba Philanthropy Award Gala

4 Former Alibaba employees.


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Philanthropy

Supporting employees to lead our philanthropy


Peihong Chi, philanthropy committee representative
Alibaba welcomes employees to take on more new committee has been able to go from planning Initiator and leader of the Alibaba Emergency Pioneer "Hugs Certificate for Red Cross First Aid and Heartsaver Instructor from
responsibility in our philanthropic efforts, to implementation of philanthropic projects, brought and Help" group, Peihong Chi is devoted to bringing more the American Heart Association (AHA).
contributing their valuable insights on how to Alibaba employees to more actively participate in people to become "emergency pioneers". She has established a
comprehensive first-aid training system for Alibaba employees Led by Chi, the Alibaba Emergency Pioneer "Hugs and Help"
best leverage our technology and businesses to philanthropic projects, operated the philanthropy
to ensure the professionalism and long-term consistency of first- group has participated in large-scale activities to provide first-
catalyze positive social changes. Alibaba’s unique committee fund, planned and initiated the ‘Good aid training. By actively organizing parent-child, community, and aid support, including the Hangzhou Marathon, the Hangzhou
philanthropy committee, established in 2012, elects Things Happen’ program, and sponsored charity campus training, she has contributed to broadening participation Dream Town Half Marathon, and the 17th Xuanzang Road Gobi
new ‘Alibaba philanthropic partners’ every three events led by caring and innovative Alibaba across society. Challenge. In 2023, the group was awarded the Best Charity
years. These partners act as representatives for all employees. Star of the Year on the "Alibaba Charity List".
In FY2023, the Alibaba Emergency Pioneer "Hugs and Help"
Alibaba employees and actively collect feedbacks
group provided professional training for 15,431 people in Philanthropy committee members
and suggestions from employees for discussions on In FY2023, the fourth philanthropy committee more than 20 cities. With the help of the training, thousands of launching the 120 emergency response
the direction of Alibaba's philanthropic efforts. organized 162 activities related to children’s participants have obtained first-aid certifications such as the volunteer team
education, social emergency support, care for the
When COVID-19 pandemic peaked at the end of 2022,
In September, 2021, after nominations, roadshows, disadvantaged, environmental protection, and
emergency consultation calls surged in Hangzhou. Pressure
discussions, practices, and voting, 14 employees technology philanthropy, in which 4,110 Alibaba and Risks rose for patients and their families as the public
formed the fourth committee. In the time since, the employees participated. emergency hotline capacity failed to meet soaring demands.

To help with the situation, the philanthropy committee


members and Alibaba Philanthropy immediately initiated
cooperation with the First Aid Station of Hangzhou to
recruit emergency response volunteers in Alibaba. After
comprehensive training, committee members Peihong
Chi and Yi Wang, and former member Jing Guo, as well
as over 300 Alibaba employees, became volunteer
dispatchers for the 120 emergency hotline, and participated
in emergency coordination service shifts. They carefully
responded to emergencies through answering calls, calling
back disconnected calls, providing preliminary symptom
diagnoses, and offering emotional comfort to ensure the
hotline was accessible 24 hours a day. In 2023, the 120
Peihong Chi emergency response volunteer group won the Best Charity
Star on the "Alibaba Charity List".

For more details:


Please refer to Chapter 1 Employee participation in biodiversity education and conservation P60,
Chapter 5 Shaping brand development in rural agriculture P155,
The fourth philanthropy committee Bringing digital talents to rural areas P157,
and Strengthening and expanding rural elementary education P162
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Philanthropy

Technological innovations for


social challenges
Technology and professional skills are now to apply their talents in philanthropy, leveraging
essential for innovative and effective philanthropy. their expertise to find the best solutions for social
Through the full support of finance and resources, challenges.
we create a conducive environment for employees

Tackling social problems Empowering charities with


with technology technology

Bailing Guo, Alibaba data engineer


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Philanthropy

Tackling social problems with


technology
Rare disease treatment map easing the difficulties Screening and intervention for Alzheimer’s disease
Many social challenges remain unaddressed not of diagnosis and treatment for patients Dementia brings immense challenges to the elderly and their families. The most common form
only because of a lack of material resources, but also Jointly with the Beijing Illness Challenge Foundation, Alibaba Health released China’s first "Rare of dementia is Alzheimer’s disease (AD), yet medical solutions for AD are limited. Early screening
because of a lack of access to information, especially for Disease Treatment Map" in February 2023, seeking to enhance access to medical information and intervention are effective measures; however, screening of cognitive functions is highly
for patients with rare diseases. This map performs a matching search of disease guidelines and technical and time-consuming. Most cities in China lack appropriate resources, so the process
disadvantaged groups. Alibaba is committed to enhancing
synonyms for the 121 rare diseases featured in the National Health Commission’s Directory of Rare of dementia screening is far from ideal. Volunteers in the AD Screening Program at Alibaba’s
environmental protection and solving social challenges DAMO Academy have developed a smart tool that uses AI technology to screen for cognitive risks,
Diseases with 324 hospitals registered in the National Network to Collaborate on the Diagnosis and
with technology. By sharing our expertise and skills in areas Treatment of Rare Diseases in China. Combining Alibaba Health’s technical capability of geographic as easily as checking blood pressure. It achieves the same reliability and validity as traditional
such as data processing and visualization, we improve location recommendations, the map provides users with comprehensive and professional information manual screenings, but only takes one-third of time. The project team has partnered with various
the circulation of information and coordinate resources to on doctors and institutions across China that specialize in rare disease treatment, shortens the government and social organizations to raise awareness of AD. As of March 31, 2023, it has helped
medical consultation process, and improves the convenience and diagnosis accuracy for patients. 118,746 seniors get screened, in collaboration with several medical experts, hospitals, nursing
better solve problems.
homes, and nearly 600 volunteers.

For more details:


Please refer to Chapter 3 Inclusive consumption P102,
Chapter 5 Rural technology officers P159,
Strengthening and expanding rural elementary education P162
Consultation and medical supplies guarantee P170
Deploying digital technology to enhance social capability in
disaster mitigation and relief P173

Amap's wheelchair navigation assisting barrier-


free travel for disadvantaged groups
Cities in China can be complex and diverse in topography and traffic
conditions. The overall level of accessible facilities is relatively low,
creating barriers for many people, including those with disabilities, the
elderly, the sick, the injured, and parents with infants. A 30-centimeter-
high step may be a large barrier that affects their accessibility and even
safety. Since 2017, Amap has focused on facilitating barrier-free travel
for those with disabilities. In FY2023, Amap established a wheelchair
navigation charitable project team, and recruited technical volunteers in Using the "rare disease treatment map" Volunteers go into the community to screen seniors with AI screening tools
Alibaba to develop a system to help. Participants include Bailing Guo, a
data engineer from Taobao and Tmall, who lost his ability to walk after
suffering poliomyelitis as a child. He shared his firsthand experiences, so "Wheelchair navigation enables barrier-free travel for people with disabilities, not only making travel more convenient, but also giving people with disabilities confidence in travel. We
that the developers could better understand the obstacles that people hope our wheelchair navigation will cover more cities in the future, helping more people with disabilities. "
with disabilities face in real life. The wheelchair navigation feature was
launched on November 25, 2022, just before International Disability Day.
—— Bailing Guo, data engineer at Alibaba
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Philanthropy

Empowering charities with


technology
Launching the "Green Code" platform
Alibaba recognizes the critical role of non-profits and The level of digitalization of charity organizations in China is generally low. We launched the The volunteers have also created a number of templates for common scenarios faced by
social entrepreneurs in driving wider and positive “Green Code” platform to bridge the technical needs of charity organizations and developers charity organizations.
who can help. The organizations can join the free platform and outline their technical
societal change. We are committed to augmenting
requirements. Developers can view these requests and then volunteer to help organizations As of March 31, 2023, 370 charity organizations and 6,800 volunteers have registered on “Green
their capabilities by supporting their development based on their abilities and interests. The "Green Code" platform provides resource Code”, and the platform has supported the digitalization of more than 100 charity organizations.
and projects, and we offer them platform and coordination, process collaboration, technical communication, and technology empowerment.
technology solutions to support their philanthropic
work and help them grow.
“Green Code has connected a lot of lovable technology volunteers for us. They have developed Mantianxing Public Welfare program with data management system through low-
code platform, which brings great convenience for us to count the reading resources acquired by schools and the participation in reading activities, so that we could promote reading
For more details: in a more customized manner and make better use of reading resources.”
Please refer to Chapter 1 Water protection throughout our
ecosystem P58,
Supporting local natural conservation P63, —— Haiguang Liang, Founder of Mantianxing Teenagers Public Welfare Development Center in Haizhu District, Guangzhou City
Long-term cooperation with institutions to build an
environmental information network P63,
Chapter 5 Improving our logistics resilience P169

Technology creators share the "Green Code" Project


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Connecting ecological forces to empower charities


Alibaba has unique strengths in philanthropy in to participate in philanthropic activities efficiently
our ability to leverage the platform's power to and conveniently.
build a broad ecosystem, enabling more people

Social Promoting multi-party Spreading positive energy and


emergency participation through leveraging encouraging the public to do
assistance platform power righteous deeds

Expanding social influence through our platforms, empowering charities with technology
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Philanthropy

Social emergency assistance


By investing in and integrating our diverse Providing relief after the Luding earthquake Contributing to pandemic prevention and control in rural areas
resources and capabilities, we support initiatives
In September 2022, a 6.8-magnitude earthquake struck Luding County in To purchase two fingertip pulse oximeters for each of the over 600,000 village clinics across China,
to tackle public crises, including earthquake relief,
Ganzi Tibetan Autonomous Prefecture, Sichuan Province. Alibaba rapidly Alibaba donated RMB125 million through the Alibaba Foundation in January 2023. This purchase – under
environmental protection, and public health. launched a disaster relief plan through the Alibaba Foundation, and donated the guidance of the Ministry of Agriculture and Rural Affairs, the Ministry of Industry and Information
RMB5 million for earthquake relief and reconstruction in coordination with Technology, and the National Health Commission – covered almost all of China’s administrative villages. In
In FY2023, the Alibaba Group donated RMB399 the arrangements of the government. Through our rural revitalization just 4 days, Cainiao delivered more than 1 million oximeters to bolster pandemic care in rural areas.
million to the Alibaba Foundation, mainly towards commissioner in Ganzi, we devoted considerable efforts to allocating
resources to support frontline disaster relief. Cainiao also established rural healthcare emergency warehouses in six major cities – Tianjin, Xi’an, Wuhan,
public welfare projects in areas such as pandemic
Guangzhou, Chengdu, and Jiaxing – to enhance the logistics capacity in adjoining rural areas. In February
relief, education, and environmental protection. At In addition, the Alibaba Philanthropy platform has collaborated with 2023 – guided by the Ministry of Agriculture and Rural Affairs, the All-China Federation of Industry and
the 7th China Annual Conference on Philanthropy, organizations such as the Chinese Red Cross Foundation, the China Social Commerce, the Ministry of Industry and Information Technology, and the National Health Commission –
hosted by China Philanthropy Times, Alibaba Assistance Foundation, the One Foundation, and the Amity Foundation to Cainiao sent over 22,000 oxygenators to primary healthcare institutions in 386 locations, including Xinjiang
was awarded the "2023 Philanthropic Enterprise". launch a fundraising initiative during Alibaba's Philanthropy Week. Uygur Autonomous Region, Gansu province and Guangxi Zhuang Autonomous Region to improve the
quality primary medical care.
Meanwhile, the Alibaba Daily Positive Energy
program as well as the Ai You Foundation’s medical
For more details:
assistance project for critically ill children and the Providing cross-sector emergency relief for the Please refer to Chapter 5 Responding systematically to public health crises and natural disaster P170
China Foundation for Rural Development’s Child Turkey-Syria earthquake
Companion Plan supported by our “XIN 100”
In February 2023, a 7.8-magnitude earthquake hit Turkey and Syria.
program were awarded the Philanthropy Projects of Alibaba quickly established a Cross-sector Disaster Relief team, led by our
the Year. International Business Department. Fully leveraging the strengths of our
platform to combine resources, we completed relief supply procurement and
cross-border delivery within 48 hours, and all materials were delivered to

RMB 399 million


Alibaba Group donated RMB399 million to the
disaster-hit areas in Turkey.

On receiving an emergency relief request from the Turkish embassy in


Alibaba Foundation
China, Cainiao immediately established a special team to handle and
deliver materials to Turkey. A special transportation channel ensured the
quick delivery of urgently needed tents, sleeping bags, and blankets to the
2023 Philanthropic earthquake area in Adana and other regions. Cainiao delivered a total of

Enterprise more than 200 tons of materials to Turkey.

Meanwhile, the Alibaba Foundation immediately contacted the Zhejiang


Rescue Team of Ramunion, an experienced civilian rescue team. Upon
approval by the Ministry of Civil Affairs and the Council, the foundation
donated RMB500,000 to Ramunion to fund their rescue.

Donate finger-clip oximeters to village clinics


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Promoting multi-party participation through leveraging platform power

We have leveraged the power of technology, business realize the aspiration of continuously supporting Linkage with merchant ecosystem to
experience, and platform resources, to encourage and philanthropy. In FY2023, the “Goods for Good” project assist the "Smiling Children" project
inspire broader society to participate in philanthropic attracted 2.04 million merchants and 470 million In response to the hunger faced by children in
activities. This ranges from small actions in everyday consumers to participate, benefiting over 9 million some impoverished areas of developing countries,
the China Foundation for Rural Development has
shopping, to responding to and volunteering in charity people. The "Goods for Good” project mainly focuses
launched the International Smiling Children Feeding
initiatives. We want to engage everyone to participate on areas such as care for disadvantaged groups, Program, helping children grow and develop
in philanthropy, and better integrate philanthropy education, environmental protection, and animal healthily by providing meals or distributing food. In
into social life. At the same time, we have always protection. 2022, the International Smiling Children Program
maintained a cooperative relationship with the public became a partner of Alibaba's "XIN 100" program.
At the same year, we received support through the
welfare ecosystem, exerting the appropriate social Alibaba’s "Three Hours for a Better World" platform
“Goods for Good” project from 82 million orders
value of every good deed. links billions of consumers with organizations that from 340,000 heartful merchants, raised RMB4.44
need support and volunteers, promoting public million in donations, and carried out projects in
In terms of driving the public, we have launched philanthropic participation. Ethiopia, Nepal, and Myanmar, benefiting a total of
"Alibaba Charity Platform" and “Three Hours for a 6,936 students.
Better World” welfare platforms including “Goods for In terms of connecting charity organizations, we
Good”, enabling more people and enterprises who have launched public welfare programs such as
desire to do “good deeds" efficiently to participate "XIN 100". This plan aims to support public welfare Digital platforms sparking a wave of philanthropy during Alibaba Philanthropy Week
in public welfare. Taobao merchants can designate projects that align with Alibaba's ESG and public On 2022 China Charity Day, Alibaba – under the guidance of the Ministry of Civil Affairs, driven by philanthropy intention,
their "goods on sale" to "Goods for Good" voluntarily, welfare philosophy. This plan collaborates with commercial methods, and technical power – mobilized business departments, merchants, institutions, and the public to
donating a portion of the transaction amount from excellent charity organizations annually to incubate participate in philanthropic activities. By fully leveraging our digital advantages through online and offline channels, we
made China Charity Day a resounding success and achieved unprecedented targets.
such sales to specified public welfare projects. After and create at least 100 benchmark projects,
consumers purchase products labeled as "Goods for promotes innovation in public welfare models, jointly During the Alibaba Philanthropy Week:
● 2.84 billion media exposures through new media and social media, with 8.77 million public interactions;
Good" on Taobao, the platform donates the amount build reliable digital infrastructure in the industry,
● 34 business units of Alibaba were mobilized to provide resources, attracting 260 million participants to
set by the merchant to the corresponding charity and assists in the sustainable development of public
engage in the Alibaba Philanthropy Week;
organization or project. welfare undertakings. In FY2023, "XIN 100" supported ● 42 charity organizations initiated 118 projects, raising RMB33.41 million, and 41 charity organizations
a total of 102 excellent public welfare projects from established 780 caring teams;
We consolidate philanthropy into small transactions 64 public welfare organizations. The main areas ● 31.77 million participations were engaged in philanthropy through platforms such as Taobao and Alipay,

between consumers and merchants. Low in cost that the “Goods for Good” and "XIN 100" focus on and 200 million "love beans" – charity credits – were distributed.
but large in scale, the program conveniently and are caring for the disabled, education development,
efficiently pools resources in a real-time manner environmental protection and animal protection, and
to build the "e-commerce + philanthropy" value elderly care.
For more details:
chain, helping to boost a positive cycle of long- Please refer to Chapter 1 Wildlife conservation through digital platforms P61,
term support for philanthropy among the public and Engaging and inspiring the public to become actively involved in nature conservation P64,
Chapter 5 Shaping brands in rural agriculture P155, Promoting rural tourism and cultural charms P156
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Facilitating Participatory
Philanthropy

Spreading positive energy and


encouraging the public to do
righteous deeds Daily Positive Energy benefits virtuous and kind individuals. People with good deeds are rewarded with public recognition and rewards. Such an
initiative is an innovation in the public welfare mechanism. Alibaba moves from "making it easy to do business anywhere" to "making it easy to do good
We believe that the ultimate form of philanthropy anywhere". In the past decade, Alibaba has given RMB100 million to support the program, which is really a great achievement.
is a lifestyle, which needs to facilitate participatory
philanthropy to step further into the mainstream —— Zhenyao Wang, Dean of the China Philanthropy Research Institute at Beijing Normal University
social values and bring more philanthropy actions.
Therefore, in addition to our own corporate
philanthropic activities, it is necessary to spread the
concept and amplify the positive energy.

'Daily Positive Energy', without preaching, sensation, or artificiality, encourages the media to discover and tell touching positive energy stories. Such
stories are then amplified and promoted through rewards. In this unique, subtle and invisible manner, more people will be inspired to do more good
deeds, spontaneously and unconsciously.

—— Di Shu, Editor in Chief of Charity Weekly of CPPCC DAILY


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Facilitating Participatory
Philanthropy

Gathering influential media philanthropists "Daily Positive Energy" encouraging the public
for the new media workshop to do righteous deeds5
Alibaba hosted the "China new media philanthropic workshop" Alibaba joined forces with mainstream media across China to
themed "consolidating forces for goodness and assisting rural launch the "Daily Positive Energy" program in 2013. In the 10
revitalization" in February 2023, with representatives from 39 years since, the program has searched for, shared, and provi-
media. We hope to consolidate the power of outstanding ded recognition for righteous deeds done by ordinary people.
and influential media philanthropists to practice and share As of March 31, 2023, we have given positive recognition and
good deeds, facilitating the development of philanthropy encouragement to 11,722 people, awarded more than RMB100
in China by making participatory philanthropy a lifestyle. million, and organized more than 1,800 activities. With a
The workshop focused on social challenges including the mature model of "rewards for positive energy" and "incubation
employment of older migrant workers, the education of rural of innovative public welfare activities", a comprehensive social
children, the promotion of Mandarin among children in remote advocacy and nationwide volunteer service system have been
ethnic minority areas, drug safety for rural children, and the established in China.
mental health of adolescents. The workshop also carried out
the "venture philanthropy group roadshow" and provided Over the past decade, classic cases have been widely sha-
philanthropy venture support for outstanding projects. red and more than 10 winners of the "Daily Positive Energy"
program have been recognized with national honors such
as "Touching China Role Model" and "National Ethical Role
Models". An additional 300 winners have been commended by
local governments, becoming role models for the society.

Prominent examples include truck driver Baomin Li, from


Shandong province, who volunteered his services thousands of
miles away in Hubei province during the COVID-19 pandemic.
As Li said, while chewing Shandong pancakes, "I have no mo-
ney, but I can contribute my labor." Meanwhile, labor contrac-
tor Wuxian Chen, from Henan province, insisted on repaying
money for 15 years to keep his promise.

It is the mission of "Daily Positive Energy" to find and encoura-


ge these upstanding people. We believe that highlighting the
righteous deeds of these individuals inspires others to follow,
forming a positive cycle and culture in which everyone contri-
butes to the greater good.

5 For more details of "Daily Positive Energy" program, please refer to the Ten-year Evaluation Report on Daily Positive Energy Program (http://www.bnu1.org/show_2798.html,
released by the China Philanthropy Research Institute of Beijing Normal University)
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Building Trust
To build the trust of our corporate partners and society, firstly, we observe ethical
business practices and comply with all applicable regulations, overseen by an
effective, transparent, and diverse corporate governance structure; and secondly,
we are dedicated to advancing privacy protection and data security capabilities,
and practices of technology ethics. Our goal is to gain and maintain public trust in
our business ecosystem and digital technology, striving to ensure our business and
technology ultimately benefit society at large.

We achieve those goals by,

● Building corporate trust P190


● Building social trust P199
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Building Corporate Trust Science and Technology Ethics Governance

Management Norms for Science and Technology Six basic principles


Ethics Review Six basic principles for science and technology ethics
Release of Management Norms for Science and Technology Ethics governance of the Group – people-oriented, inclusion
Review and integrity, privacy protection, security and reliability,
trustworthiness, openness and co-governance

60 % 30 % Building Corporate Trust


The percentage of independent directors has increased to
60%, and the percentage of the directors who are women
has reached 30% from 20%
The Second Prize of the 2022 Wu Wen Jun AI

100 % Science & Technology Award


One of the multi-partnership research results "Key Technologies
and Applications for Efficient Content Governance in Complex
Both the Code of Business Conduct exam and the
Compliance and Risk Awareness exam were launched Internet Environments" has been awarded the Second Prize of the
with 100% of employees covered 2022 Wu Wen Jun AI Science & Technology Award

Privacy Protection and Data Security

Titanium Award for Digital and


The Highest Strong Performers Trustworthy Cloud 100 %
Alibaba Cloud, as one of the cloud service providers with the Alibaba Cloud was the only company in China Alibaba Cloud won the highest-level The “Safety Red Line Certification” exam
highest level of security and compliance in the Asia-Pacific to be positioned as the "Strong Performers" in Titanium Award for Digital and Trustworthy has been launched with 100% employee
region, continues to improve the security compliance level of the the The Forrester Wave ™ : Infrastructure-As-A- Cloud, granted by the British Standards coverage
cloud platform with strict requirements and rigid implementation Service Platform Native Security (IPNS) report Institution
of over 130 global security compliance standards
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Building Trust

Building corporate trust


We gain the trust of our corporate partners On March 28, 2023, we announced a new business groups is independently managed As the ESG report for FY2023, this report focuses
by building an effective and professional organizational and governance structure to by its own chief executive officer and board of on the structure and actions prior to the
corporate governance system; reducing empower all our businesses to become more directors (or equivalent governing body). The organizational and governance restructuring
risks and improving the stability of our agile, enhance decision making, enable faster director and CEO candidates of these major while also incorporating some key changes
business development through a sound risk responses to market changes and promote business groups are subject to the approval under the new organizational and governance
management system; and building goodwill innovation to capture opportunities, thereby and appointment of Alibaba Group’s board of structure.
and promoting business partnerships by unlocking shareholder value. Under our directors.
adhering to ethical business principles. new structure, Alibaba Group is the holding
Together, these elements form the cornerstone company of the six major business groups and
of our corporate trust. various other businesses. Each of the six major

Maintaining an effective and professional Risk management Ethical business


corporate governance system system conduct

Build the cornerstone of corporate trust


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Building Trust

Maintaining an effective and Independence and Diversity of the Board of Directors.


professional corporate governance
system We endeavor to promote diversity in gender, Corporate Governance Committee of the Board to 30% during the last fiscal year. Our board
culture, professional expertise, and other of Directors Charter. members feature rich professional backgrounds
A first-class corporate governance system dimensions in the board of directors to align and industry experiences in fields such as
enables the corporation to continuously with the ongoing business diversification. It has As of March 31, 2023, the board of directors retail, computer science, electrical engineering,
innovate and create first-class products and been stated clearly that age, gender, cultural of Alibaba Group has a total of 10 members, economics, finance, law, business, and real
services for clients and the society. A good background and cooperation ability should including six independent directors and three estate.
governance system requires a compliant, be considered comprehensively during the directors who are women, the percentage
professional, and efficient decision-making nomination of the Board in the Nomination and of women directors has increased from 20%
mechanism, which can safeguard the long-
term interests of all stakeholders.

Independence and diversity of


the board of directors

Board governance structure

Sustainability governance
structure

60 %
Percentage of independent
directors

30 %
Percentage of
women directors
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Board governance structure

In terms of the board of directors, Alibaba’s committee were newly established upon approval by In addition, each committee of the board should members, sufficiency and effectiveness of board
overriding goal is to maintain its effectiveness, the board of directors in May 2023. conduct a self-evaluation at least annually and and committee meetings, and attendance and
independence, diversity, and professionalism. report the self-evaluation results to the Board, participation of directors at board and committee
Driven by this goal, as of the reporting date, Alibaba According to Alibaba Group Holding Limited acting through the nominating and corporate meetings2.
Group's board of directors maintains six committees, Corporate Governance Guidelines1, the Board, acting governance committee. Each committee’s evaluation
including the audit committee, compensation must compare the work of the committee with the
through the Nominating and Corporate Governance
committee, nomination and corporate governance requirements of its written charter. In evaluating
Committee, should conduct a self-evaluation at least
committee, sustainability committee, compliance the work of the board and each committee, the
annually to determine whether it and its committees
and risk management committee, and capital board, acting through the nominating and corporate
are functioning effectively.
management committee, of which the compliance governance committee, considers factors such as:
and risk committee and the capital management skills and backgrounds of board and committee

1 Code of Corporate Governance https://data.alibabagroup.com/ecms-files/1452422558/835c8407-03b6-4505-bde1-50b26d129074.pdf.


2 For more detailed information on board governance, please refer to Directors, Senior Management and Employees in Item 6 of FY2023 Annual Report of Alibaba Group.
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Building Trust

Sustainability governance structure

In FY2023, Alibaba’s sustainability governance ESG goals and carbon neutrality commitments.
structure consists of three layers, namely, the Board Meanwhile flexible and appropriate ESG strategies
sustainability committee, the sustainability steering will be adopted according to the development stages
committee (SSC), and the ESG working group. of different business groups and companies. To
further integrate sustainable development goals into
In order to ensure the steady improvement and various strategies and designs of business groups
implementation of the sustainable development and companies, Alibaba has decided to incorporate
strategy, under the leadership of the Board ESG goals and other business and compliance goals
sustainability committee, SSC held four coordination into the performance and remuneration appraisal
meetings on a quarterly basis to review the system of business groups and companies.
implementation progress of ESG goals and the
promotion strategies of key issues. At the level of
the ESG working group, ESG strategy and operation
department together with main business units has
streamlined main ESG issues, formulated ESG plan,
and promoted them to build their own ESG corporate
structure. Alibaba Group’s ESG strategy and
operation department has cooperated with the ESG
working groups of each business unit to establish a
cross-departmental working group to carry out the
implementation of the ESG strategy, including carbon
neutrality goals, climate adaptation and change,
etc. Meanwhile, we have developed the Group’s ESG
data management system and carbon emission
management system as digital tools for our daily
ESG management.

The new organizational and governance


restructure will not change the ESG strategy and
current commitments. Meanwhile, the three-layer
governance structure will continue to be maintained.
The holding group, business groups, and companies
will make concerted efforts to achieve overall ESG goals are linked to the CEOs' performance and salary assessment
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Building Trust

Risk management system Organizational structure

In FY2023, we continued to improve our In FY2023, Alibaba’s risk management structure Upon the launch of the new organizational and members are independent directors, is the highest
existing risk management structure and consisted of the Alibaba Group risk management governance restructure, Alibaba has established control and decision-making body of the compliance
systems, and implement them in actions, committee (hereinafter "risk management a new compliance and risk management and risk management organization system. The
covering management mechanisms, committee"), the management office of the committee at the Board level, further responsible compliance and risk management committee,
supervision and inspection, evaluation and Alibaba Group risk management committee, for overseeing Alibaba Group's overall compliance the compliance and risk working group under
assessment, and risk awareness training, etc. related departments of Group Risk Management, and risk management system, including risks the management of the holding group, and the
and Business Unit Risk Management teams. Under such as network and data security, regulatory compliance and risk team of each business group
the direct leadership of Alibaba Group’s CEO, risk compliance, etc.The compliance and risk or company constitute the upgraded three-tier risk
management committee serves as the highest management committee, which is directly chaired management system.
Organizational structure supervisory and decision-making body of Alibaba’s by an independent director and the majority of its
risk management system. The risk management
Institutional system and actions committee is chaired by the Group Chief Risk Officer
(CRO), with the Group Chief Legal Officer serving as
the vice chairman.

100 %
Coverage of employees in Compliance
The main responsibilities of the risk management
committee are to formulate the group's risk
and Risk Awareness exams
management strategy, improve the risk management
system, and identify the major risks of Alibaba Group.
Furthermore, the committee develops corresponding
risk management strategies, establishes evaluation
and assessment mechanisms, and supervises the
implementation of risk management measures.

Alibaba Group Risk Management System after the organizational and governance restructure
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Institutional system and actions

In terms of institutional system and actions, we will Alibaba Group has developed a supervision and
report and present the actual situation before the inspection mechanism to ensure the effectiveness
changes in the organizational structure. implementing the risk management mechanism,
which has been implemented across the Group on
Under the “three-layer” mechanism for risk a pilot basis since August 2022. To standardize the
control and management3, in FY2023, Alibaba made implementation of risk management, Alibaba has
unremitting efforts in improving the existing risk developed a standardized operations manual and
management system and took measures to refine inspection items, and has performed an automatic
the management mechanism, supervision and supervision of risk management personnel’s
inspection, performance appraisal, etc. Meanwhile, compliance with the operations manual through the
to popularize and enhance the awareness of risk digital system. In FY2023, Alibaba linked the results
management, we have also reinforced the all-hands of compliance and risk management to business
awareness training on risk management. performance, including business presidents’
annual performance appraisals, thereby further
In terms of the underlying system, Alibaba has guaranteeing the implementation of the risk
released the Alibaba Group Risk Management management system. We conducted Compliance
Outline, which defines basic principles, and Risk Awareness training and exams for our
organizational structure, working mechanism and employees with 100% coverage.
responsibilities for risk management. In terms of the
management mechanism, Alibaba has continuously
improved the mechanisms for ex-ante prevention,
emergency handling during the event and ex-
post review and improvement through the risk list
management mechanism and the emergency
management system of major risk events.

Meanwhile, Alibaba has built a comprehensive


compliance governance system and has improved
the design of related management mechanisms
for compliance risk prevention, identification, and
response.

3 "Three-layer'' mechanism for risk control and management: The first layer is operations and management, composed of the first level organization and risk management teams and functional departments of each group business,
responsible for daily operations and management; the second layer is risk management, consisting of the Group risk management team, which uniformly plans and carries out the construction and work of risk management and internal monitoring systems;
the third layer is independent audit and integrity investigation, composed of internal audit and integrity and compliance departments, responsible for providing independent evaluations of the effectiveness of risk management.
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Building Trust

Ethical business conduct Anti-corruption System construction Management system


Aligning with a "zero tolerance" attitude against Since 2009, Alibaba has successively developed a As the joint management and execution body of anti-
Upholding a high level of business ethics is
corruption, Alibaba has continuously refined comprehensive system of policies and regulations to corruption, the Integrity and Compliance Department
Alibaba's requirement for every employee.
its existing anti-corruption system by building guide employee conduct and enforce the company's and the Legal Department jointly report to the CEO.
We are committed to conducting our work
corresponding organizational structures and integrity culture. Alibaba has continuously updated Functionally, the Legal Department is responsible
with compliance, integrity, and good faith,
management systems to ensure their effectiveness. the system in accordance with regulatory laws and for revising, interpreting, and implementing of
committing to ethical practices that maintain
At the same time, to maintain and continuously corporate requirements to consolidate and improve anti-corruption-related policies while the Integrity
fairness, trust, and openness in all our
improve the ability of anti-corruption investigation the corporate culture of anti-corruption. and Compliance Department is responsible for
businesses to build a sustainable business
management and risk prevention, Alibaba regularly corruption investigation, prevention and promotion
environment. Alibaba strictly abides by the civil
carries out evaluation, auditing, and training. In addition to preventing bribery and corruption set of integrity culture which has the authority to hold all
and commercial laws, anti-unfair competition
forth in the Code of Business Conduct, Alibaba has employees accountable on an equal and uncapped
laws, criminal laws and other laws and
also released the Alibaba Group Anti-Bribery and basis. The Integrity and Compliance Department is

100
regulations of China, and has formulated
Anti-Corruption Policy that applies to all Alibaba independent from all business lines and maintains
the Alibaba Group Code of Business %
Coverage of employees in The Alibaba Code directors, executives and employees, including functional independence from other risk control
Conduct (hereinafter the “Code of Business of Business Conduct exam full-time, part-time and temporary employees. departments, such as the Internal Audit and Internal
Conduct”) to regulate the behavior of every
Furthermore, Alibaba has formulated supporting Control Departments, thereby forming a mechanism
employee, including basic requirements such
337
rules such as the Alibaba Group Conflict of Interest of coordination among multiple layers. Meanwhile,
as preventing bribery and corruption and
Guidelines and Interpretations, the Alibaba Group the Integrity and Compliance Department reports the
safeguarding fair competition. Integrity Training
Sessions
Gifts Handling Guidelines, and the Alibaba Group progress of anti-corruption efforts to the board of
Government Affairs Regulations. directors regularly.

Anti-corruption

Maintaining fair competition


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Building Trust

Investigation actions Audit mechanism Risk evaluation


Alibaba obtains indications of business fraud and compensation. Alibaba incorporates the integrity Every quarter, the Integrity and Compliance The Integrity and Compliance Department regularly
corruption through collecting internal and external of business teams into the performance appraisal Department discloses fraud cases to external evaluates the risk levels of different positions in
reporting and conducting regular assessments. We of their respective business managers, and stresses auditors, and responds to questions from external the business departments, strengthens anti-fraud
maintain accessible and independent reporting their accountability for fraudulent incidents of the auditors. In addition, the Integrity and Compliance and anti-corruption education for those in high-
channels, including an official website, emails, business teams in the Code of Business Conduct, Department reports to the audit committee quarterly risk positions, and promotes regular job rotations
hotlines and the Integrity and Compliance reporting making fighting corruption and fraud one of the core on fraud cases and its management of other and separation of powers and responsibilities to
portal on the intranet. Alibaba encourages all indicators of all business management. major risks. In FY2023, we had a total of 45 cases reduce the risk of fraud and corruption. The Legal
employees, business partners, and the public to of employee corruption that have been transferred Compliance Team annually conducts anti-corruption
report corruption and fraud practices involving Alibaba exerts efforts to maintain an atmosphere of to the judicial processing, of which two cases were risk evaluation across the Group to determine the
Alibaba employees. Alibaba has established nearly outstanding integrity. Based on the survey involving initiated and concluded, and the people involved level of corruption risk and formulates corresponding
50 online reporting portals and more than 80 offline all employees in the past three years, 99% of the were all sentenced according to the laws. measures.
reporting sites. At the same time, in compliance with respondents have an in-depth understanding of the
legal and regulatory requirements, a "whistleblower Alibaba Group Code of Business Conduct, and more
protection" clause has been formulated in the than 85% of the respondents believe that integrity Integrity training
Integrity Reporting System, which strictly protects across the Group can reach a score of 4 or above (out
the personal information and reporting content of of 5 points). Strengthening daily education and training is the
whistleblowers. best way to manage risks. Alibaba provides all
employees with training on the Alibaba Group Code
For clues involving corruption issues, the Integrity of Business Conduct as well as the supporting rules
and Compliance Department or the managers of Alibaba Integrity Reporting Email: thereof in the form of new employee orientation
the department to which the suspected misconduct lianzheng@alibaba-inc.com training, various special training, annual examination
employees belong to will conduct a detailed (including pre-exam online training), etc. As of the
investigation and make a judgment concerning Alibaba Integrity Reporting Website: reporting date, 2023, the examination on the Alibaba
any violations, according to their respective https://lianzheng.alibaba-inc.com Group Code of Business Conduct has covered
responsibilities. For employees who have committed 100% of the employees. We have also launched
violations, their business department and the 377 integrity training sessions, involving 46,883
Human Resources Department will make disciplinary participants in total. Meanwhile, Alibaba has also
decisions in accordance with the Employee launched training sessions on integrity for external
Disciplinary Rules within five working days. third parties (suppliers, contractors, partners, etc.).

Alibaba dismisses, demerits, issues warnings, or


applies other reprimands to an employee involved
in violations. Except for minor infractions subject to
reprimands, non-compliant behaviors are linked to
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Maintaining fair competition Measures of fair competition model and reviewing risk with compliance
experts. For suspected risk information,
Alibaba has attached great importance to building Our e-commerce business has always been Alibaba gives timely alerts through the
and maintaining a favorable market environment upholding the value of continuously optimizing digital system.
for fair competition and improve the long-term platform rules and standardizing resource allocation
mechanism of compliance management. Based on the while respecting the independent management Furthermore, Alibaba publicly discloses
regulations, different businesses have also formulated rights of merchants to guarantee a fair and orderly our business compliance commitments
management regulations, such as Taobao Regulations business environment in our platforms. In FY2023, and reporting e-mails to society and
on Competition Behavior Management. Meanwhile. we our main management measures were as follows: users, thus establishing an external
have released related employee manual to regulate supervision mechanism involving the
the business behaviors of our employees. Continuously sorting out and reviewing the platform merchants and consumers.
provisions in the existing rules, strictly implementing
the procedures for publicity and opinion collection,

100 %
Coverage of employees in
and timely revising and optimizing the rules to
ensure standardized procedures and transparent
Training on fair competition
Compliance and Risk Awareness content. To further establish the awareness of
exams
Improving the resource allocation rules for marketing fair and compliant competition, we have

910,000
Promotional Sessions
person-times
activities, clarifying the processes for entry, reporting
and approval of marketing activities, guaranteeing
formulated the employee compliance
training system. Different businesses
Coverage rights of merchants, strengthening internal control specify responsibilities for different job
management and avoiding improper human functions and conducts compliance
intervention; training on a regular basis. In order to
Continuously promoting the construction of a enhance the professional abilities of
competition compliance system, clarifying the compliance management personnel, we
compliant competition management system, have designed a series of courses such
processes, and standards, and establishing a work as Enhancing Capabilities in Competition
mechanism for risk sorting, identification, reporting, Compliance in related businesses, and
and treatment management across all business launched competition compliance
departments; promotional materials in comics.
In FY2023, a total of 35 promotional
To strengthen the management of competition sessions covered 910,000 person-times.
compliance risks, we have has conducted In addition, all employees in Alibaba shall
competition compliance risk monitoring in key areas pass the compliance and risk awareness
such as contracts, platform rules, data disclosure, exam, which includes the content of Alibaba Anti-Unfair Competition Reporting Email:
resource allocation, and product designs by competition compliance, with a coverage competition-compliance@alibaba-inc.com
identifying risks using a dynamic risk monitoring rate of 100%.
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Building Trust

Building social trust


Alibaba firmly believes that technological business ecosystem are formed based on
progress is essential for achieving sustainable public trust. Alibaba pursues not only scientific
development goals, however, digital changes and technological progress, but also seeks to
pose unprecedented challenges and risks. become the leader of digital trust.
Therefore, while constantly improving the
corporate governance mechanism, Alibaba
focuses on privacy protection and data security,
as well as technology ethics, to build secure
and ethical digital trust. Alibaba and our

Privacy protection and data security Science and technology ethics

Not only pursue advanced technology, but also strive to lead the way in digital intelligence trust
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Building Trust

Privacy protection and data security Management principles in the Personal Information Protection Law of the professional training for employees in data security
People's Republic of China. The PIPOs are responsible for positions, including PIPOs. For general employees,
Privacy protection and data security constitute For corporate customers, Alibaba launched China's supervising personal information processing activities Alibaba provides multi-level and comprehensive
a foundation for trust in the digital era, and are first Data Protection Initiative in July 2015, advocating and taking corresponding protection measures, to security "red line" training and certification exams yearly.
among the most important concerns of Alibaba for various cloud service providers, including Alibaba implement the privacy and data security in their entire life In FY2023, all employees were required to participate in
Cloud, to adopt and follow three principles to protect cycle. PIPOs report to the business presidents, who is the the Code of Business Conduct Certification and Security
users, customers and other stakeholders. Alibaba
privacy and data security: primary responsible person in data security and personal Red Line Certification, which included privacy protection
is committed to protecting the privacy and data
You own your data, information protection of the respective business unit, and data security training content and exams. The total
security of our users. On this basis, Alibaba makes You manage your data, and the data security decision-making group. coverage of "Security Red Line Certification" is 100%.
unremitting efforts to build governance mechanisms and your data is protected. Furthermore, Alibaba has established a collection
throughout the data lifecycle, build cutting-edge of specifications to support emergency response
privacy protection and data security technologies For consumers, Alibaba adheres to the following three Management system mechanisms for privacy and data security incidents.
and apply them to our products and services. principles of "minimum data collection", "ensured user The Alibaba Group Emergency Response Management
awareness and choice", and "enhanced user data Alibaba strictly complies with the privacy protection Outline provides general constraints on business
protection capabilities". and data security laws and regulations of the operating continuity, emergency response and incident response
Management principles countries, and makes unremitting efforts to develop processes; the Infrastructure Security Regulations
For more details: and update related management system. As of March is applicable to cybersecurity; the Basic Security
Governance structure Please refer to Chapter 3 Improving full-link product quality and
31, 2023, led by Alibaba Group Data Security Outline, Emergency Response Regulations specify requirements
safety P96
Alibaba has formulated and released more than ten for the organizational structure and responsibilities of
Management system Governance structure regulations for privacy protection and data security in emergency response, and provides guidance on the
the data life cycle, including collection, flow, storage, use classification and grading, handling principles, handling
Safety technologies and capabilities In FY2023, Alibaba’s data security management structure and destruction. Alibaba has also built a transparent processes of incidents, etc. Furthermore, we organize at
consisted of the risk management committee, the data Alibaba Group Privacy Platform5 to make public the least one emergency drill for different fields of different
Recognition and Compliance security decision-making group, and the data security privacy protection policies for main applications, and frequencies every year.
working group. specify personal information processing rules in a
comprehensive and detailed manner.
R&D, innovation and transformation
As the highest risk management body, the risk
management committee is responsible for reviewing and
monitoring related data security strategies, planning,
When data sharing and disclosure is necessary, Alibaba
follows the basic principles of data sharing and
100 %
Coverage of employees in Security
objectives and execution in data security. The data disclosure and regulations such as the External Data Red Line Certification
security decision-making group of the risk management Disclosure Standards and the API Data Management
committees responsible for developing data security Standards. This includes protecting personal data and
strategies and plans. The data security working group trade secrets, applying them for agreed purposes and
is responsible for implementing the data security uses, and prohibiting the sharing of high confidentiality
management strategies. level data in principle.

In terms of implementation, Alibaba has designated Alibaba evaluates the demands of different positions
the "Personal Information Protection Officer (PIPO)" for and develops personal training programs for privacy
each business unit in accordance with the requirements protection and data security. Alibaba provides
5 For more information, please refer to:https://privacy.alibabagroup.com/#/home.
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Safety technologies and capabilities

Alibaba Cloud has built a sophisticated manner, important network data are backed up the hardware. Based on the trusted environment, terms of the hardware, Alibaba strictly performs
interconnection protection system from physical to the offsite storage space regularly. Alibaba has Alibaba has further upgraded the software and multiple data wipers to complete the destruction
devices and facilities to IaaS (Infrastructure as applied automatic recovery, encryption, and other hardware encryption computing capabilities to or perform physical destruction through physical
a Service), PaaS (Platform as a Service) to SaaS measures to ensure data writing stability, storage guarantee data security. shredding. Alibaba maintains records for data
(Software as a Service) to ensure privacy protection media management, and redundant data backup destruction and physical destruction that are
and data security from all aspects. Throughout protection. Furthermore, Alibaba has established Data destruction traceable to the sole hardware device for audit
the whole lifecycle of data, Alibaba has launched a complete cloud data redundancy mechanism to Customers can delete and modify their business evidence collection.
different products and tools, and built a complete prevent the loss of customer data, ensuring data data and user data at their own discretion. If a
set of management specifications and operational resilience in case of incidents or malicious attacks. customer no longer uses Alibaba services, Alibaba
requirements for each stage, and meanwhile has will promptly delete or return the data assets of such
launched different products and tools, which is the Data transmission customers in accordance with related standards. In
technical cornerstone of privacy protection and To effectively guard against attackers or
data security, as well as the basis for sound risk eavesdroppers, Alibaba has encrypted data
management of data. during cloud transmission. Alibaba customers
enjoy strong encryption capability in support of
Data collection high-security cryptographic algorithms (SM4/
Alibaba carries out classification and grading AES) and cryptographic protocols (IPSEC, SSL/
management of data in accordance with related TLS). In conjunction with a strict authentication and
laws and standards. Sensitive data can be authorization mechanism, the probability of cracking
automatically selected from data sources, and data is basically eliminated. With this technology, Alibaba
can be then classified and graded by leveraging Cloud has provided sound protection for more than
algorithms such as sample scanning, feature 2,800 content delivery nodes worldwide in FY2023.
extraction, file clustering, and technologies such as
OCR technology, deep neural network, and machine Data usage
learning. Furthermore, customers of Alibaba Cloud Data desensitization is the foundation. On top
can select and manage their own data through the of this, another security mechanism Alibaba has
system. implemented is a trusted computing environment
from hardware to software. As the earliest cloud
Data storage vendor in the Asia-Pacific region to deploy trusted
To ensure the integrity of stored data, Alibaba computing and confidential computing, Alibaba has
has adopted a strategy of integrating local and built a fully isolated and highly trusted computing
offsite data backups. While the network data are environment based on the X-Dragon security chip,
backed up to the local storage space in a real-time protecting the data from being tampered with on
The complex interconnection protection system guarantees privacy and data security in all directions and from multiple angles
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Recognition and Compliance

Alibaba has established strict internal and external Europe (SCOPE Europe), granted the highest
audit mechanisms in terms of data security. Titanium Award for Digital and Trustworthy Cloud
According to the Alibaba Group Data Security Master by the British Standards Institution, and certified by
Plan and Data Security Audit Standards, we conduct international privacy protection standards, including
at least one data security internal control audit every ISO/IEC27701:2019, ISO/IEC29151:2017, ISO/IEC
year. In FY2023, we internally conducted two data 27018:2019, ISO/IEC27799:2016, BS10012:2017 and
security audits; externally, PricewaterhouseCoopers TRUSTe.
(PWC) has conducted annual external audits of
Alibaba Group and issued annual reports, including
IT audits of user-data-related company systems.

Alibaba Cloud strives to enforce the compliance


system construction for its global business planning.
As one of the cloud service providers with the
highest level of security and compliance in the
Asia-Pacific region, Alibaba Cloud strictly complies
with and implements more than 130 global The major awards obtained by Alibaba
security compliance qualifications and constantly Cloud in the security field in FY2023.
improves the level of security compliance of the
● Alibaba Cloud's "Network Firewall" product
cloud platform, hence supporting its customers
was again be shortlisted in the "Challenger"
and organizations to effectively meet the security
quadrant of Gartner's Magic Quadrant for
compliance requirements of their regions and related 7
Firewalls .
industries. Many credible international analyst firms
have also recognized Alibaba Cloud's overall security ● Alibaba Cloud was ranked leading position, in
capabilities (Gartner/Forrester/IDC). the China Public Cloud Network Edge Security-
as-a-Service (NESaaS) Vendor Assessment
8
As of the reporting date, Alibaba Cloud has been Report released by IDC .
recognized with the highest tier of cybersecurity
● Alibaba Cloud was the only company in China
certification Cyber Trust Mark (recently developed
to be positioned as the "Strong Performers"
by the Cyber Security Agency of Singapore), verified
in the Forrester Wave ™ : Infrastructure-As-A-
with the second-tier certification of EU Cloud Code of 9
Service Platform Native Security (IPNS) report .
Conduct (in compliance with GDPR requirements) by
the Summit for Clinical Trials Operations Executives

7 Source: Gartner Magic Quadrant for Network Firewalls, by Rajpreet Kaur, Adam Hils, Thomas Lintemuth, 19 December 2022. 8 Source: IDC Market Scape: China's Public Cloud Network Edge Security-as-a-Service (NESaaS) Market, 2022 Vendor Evaluation.
9 Source: "2023 Infrastructure-as-a-Service Platform Native Security Wave ™ ."
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R&D, innovation and transformation

Privacy protection and data security are the keys to takes the lead in balancing data security and data
ensuring efficient data flow and promoting effective circulation efficiency. Dataphin has been certified
data sharing and integration to generate value. by the ISO27001/27018 and has been used in many
Alibaba spares no effort in exploring the application industries, including finance, power, and government
of secure computing technologies in real business affairs. It has won the Annual Leading Technology
scenarios to a larger market, providing leading Achievement Award at the Third China Digital
technologies, products and services in the effective Economy Technology Conference.
protection, legal utilization and orderly flow of data
to improve the data security capabilities in various In the process of R&D, innovation and practical
industries and fields and assist in consolidating application, Lingyang is committed to developing
foundation for the development of the digital "responsible digital intelligence", focusing on the
economy. four principles of security and compliance, clarity
and transparency, fairness and diversity, and high
Based on its rich experience in data governance quality and efficiency to solve various key problems
and data security circulation technology application, in industrial practices in the digital economy,
Lingyang has output the practical results of Alibaba’s considering compliance, security, interpretability, and
internal real business scenarios and has provided fairness issues in the full-link from data collection to
Dataphin, a privacy computing product. Dataphin data application and promoting high-quality and
relies on cloud-based distributed computing sustainable development of the digital intelligence
capabilities to support secure computations at a industry.
scale of billions. It protects the privacy and security

19
of data assets through the three technical routes
of“secure multi-party computation, federated Over
The number of patents for cryptographic
learning, and trusted execution environment”,
algorithms that Lingyang holds
helping data realize secure circulation featuring
“usable but invisible”. The industry research
team of Lingyang holds more than 19 patents
for cryptographic algorithms and has led and
participated in formulating various international,
national, and industrial standards, including the
Standards for Grading and Evaluation of the Effect
of Personal Information De-identification. With the
mature data security protection system, Dataphin Dataphin has won the “Annual Leading Technology Achievement Award” at the Third China Digital Economy Technology Conference.
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Building Trust

Science and technology ethics Basic rules

Technology needs to be ethical and Based on long-term practice and thinking in the science and technology innovation governance empathy. Technology and AI development must
responsible to earn the public's trust. Science technology R&D and commercial application, system, and facilitating the implementation of the assist humanity, accept guidance and control
and technology ethics, serving as values and Alibaba has formulated six basic principles for ESG strategy. from humanity, as well as enrich and enhance the
norms to be followed during the development science and technology ethics governance in creativity of humanity, and these concepts are the
and application of technology, constitute an FY2023: people first, inclusion and integrity, privacy First of all, we adhere to the people-first value underlying values we must always uphold in the
important guarantee to promote the healthy protection, security and reliability, trustworthiness, orientation. Science and technology should be science and technology ethics.
development of scientific and technological openness and co-governance, with the aim of developed by following common values and Then under the people-first value orientation, we
innovation. motivating every Alibaba technician to practice ethics of humanity, respecting human rights and actively practice the principles of inclusion and
responsible technology, promoting the upgrading of fundamental human interests, and highlighting integrity, privacy protection, security and reliability.
In FY2023, Alibaba established the Alibaba
Group Science and Technology Ethics
Governance Committee, a systematic
upgrade in the science and technology ethics
governance of Alibaba Group. Alibaba has
also formulated six basic principles for science
and technology ethics governance. Such
principles are derived from Alibaba’s business
practices and are the upgrade, continuation
and inheritance of the responsible science
and technology strategy.

Basic rules

Governance structure

Management system

R&D and innovation

Openness and co-governance


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Inclusion and integrity: and understandable, fair and unbiased. Alibaba Governance structure Management system
On the one hand, technological development leverages AI in scenarios with social values, and
should be more inclusive and accessible to relatively spares no effort in limiting potentially harmful or The primary responsibility of the science and In FY2023, the committee was engaged in the
disadvantaged groups. For instance, technology and abusive situations to guarantee the sustainable technology ethics governance committee formulation of policies, and officially released
business should truly serve the progress of the entire development of AI. (hereinafter referred to as “the committee”) is the Science and Technology Ethics Review
society, rather than delivering negative effects such to establish and continuously improve Alibaba's Management Regulation in January 2023 in order
as widening the digital divide. On the other hand, Openness and co-governance science and technology ethics governance system, to steer approaches to implementing science
the technological development requires integrity and The problematic nature of science and technology including core guidelines, ethical norms, review and and technology ethics investigations in business
honesty, upholding the bottom line of abstaining ethics governance dictates that it is a complicated evaluation mechanism, etc., promoting responsible operations. Meanwhile, a science and technology
from vices when facing conflicts between innovation issue requiring interdisciplinary, multi-perspective innovative technologies and applications actively, ethics risk declaration system was launched to
and ethics. and intelligence-intensive efforts, making it and raising ethical awareness of technicians. receive declarations from employees. Through such
impossible to be tackled by one enterprise, one Furthermore, we make great efforts to promote methods as classification and grading management,
Privacy protection university or one institution alone. Therefore, this the sustainable development of technology in expert research and judgment of cases, reference
Privacy is a fundamental human right in the digital requires an open and co-governing framework an available, reliable, credible, and controllable governance of similar cases as well as continuous
era. Alibaba recognizes the integration of privacy participated in by multiple stakeholders, with system. The committee has established four verification and iteration, the committee enables
design principles into our products and services. multi-disciplinary, multi-field, and multi-national working groups: more participants to join in the science and
cooperation. technology ethics governance, identifying risks
Security and reliability Ethics working group, responsible for research and conducting effective management and control
As the required attributes for increasingly robust Based on the aforementioned basic rules, upholding on theories and policies related to science and promptly. For specific projects requiring ethical
technologies and the fundamental capacity of a responsible attitude towards users, our industry, technology ethics; review, the governance working group of the
Alibaba's business ecosystem to serve billions of and society, Alibaba is confident in integrating Governance working group, responsible for committee takes the initiative in establishing the
consumers and tens of millions of MSMEs, Alibaba science and technology ethics into the lifecycle assessing and governing key fields related to related project review team to conduct reviews and
carries out technological R&D and tests based on the of commercial products and services, balancing science and technology ethics, and making use form a resolution; and high-risk projects are reported
principle of security. innovations and ethical risks in a delicate manner, of systems and tools to engage science and to the committees for decision-making.
and delivering positive guidelines for science and technology ethics governance in daily scientific
At last, we develop technology in a credible, technology innovations through a truly effective research activities;
controllable, open and co-governing manner. mechanism, so that the technology can better serve Science and technology working group, responsible
the high-quality development and high-level security for technology research, product development and
Trustworthiness of the digital economy. tool building related to science and technology
Alibaba firmly believes that new technologies, ethics;
especially digital technologies represented by Communication working group, responsible for
artificial intelligence (AI), need to be more credible putting into place the principles, culture and
and controllable. AI systems should feature proper awareness of science and technology ethics across
moral and ethical concepts by their designers the Company, so that every engineer can acquire a
and developers, making AI more transparent proper understanding and apply it to work.
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R&D and Innovation


The science and technology ethics governance Taking algorithmic governance as an example, We have also been exploring the field of cutting-edge
involves a long-term process to be optimized in Alibaba, in active response to the Regulations on technology. As early as 2019, Alibaba has initiated
practices to adapt to technological development the Management of Internet Information Service great efforts in the research of self-supervised pre-
and changes in the external environment. Alibaba Recommendation, has formulated a collection training technology and made achievements in
has attempted to apply technological innovations of management guidelines, actively promoting both unimodal and multimodal foundation models.
related to science and technology ethics to business algorithm fairness and transparency to establish an Alibaba has successfully developed an Object-
practices. Abundant business scenarios in the information flow recommendation system benefiting Oriented Deep Network (OODN) code framework
Alibaba ecosystem also create many possibilities for all parties. optimized for self-supervised training, and has
providing ethical technologies. On the one hand, we applied it to internal risk control business scenarios.
have made active efforts to carry out technological On the user side, Alibaba has rearranged and broken Meanwhile, Alibaba has made active efforts to
and institutional innovations, enabling technologies down the recommendation sequences to eliminate promote technology research and development for
to be accessible. On the other hand, Alibaba has homogeneous ones to improve the experience the "adversarial example" problem that may pose
incorporated ethical values into the design of AI of each consumer group using personalized a major threat to artificial intelligence. Furthermore,
products and services while improving efficiency, and recommended products. Furthermore, Alibaba Alibaba has built an ARES system for defending
makes unremitting efforts to build digital innovations has strictly complied with the Personal Information against the adversarial examples. We have worked
that benefit multiple parties. Protection Law of the People's Republic of China as together with Tsinghua University to launch a more
well as other laws and regulations to provide users comprehensive and fairer ARES Benchmark platform,
In FY2023, Alibaba focused on building governance with an off switch for recommendation systems. and open-sourced the first ARES learning framework
capacities in both risks and technologies. Specifically, On the merchant side, Alibaba has made the for visual models, assisting industry partners in the
in terms of risk, there is an emphasis on the recommendation system more diversified and novel rapid deployment of robustness technologies.
lifecycle risk management processes, including by building discovery recommendation links. Alibaba
algorithmic evaluation, intervention mechanisms, has assisted in small and middle-sized merchant
risk detection, etc., as well as corresponding reviews growth, promoted rural revitalization by activating
and governance tools. In terms of technology, new product categories and always exploring new
Alibaba has made efforts to improve the layout and potential products, thereby mitigating the Matthew
exploration of cutting-edge technologies in the fields effect of accumulated advantage on platforms.
of privacy protection, security and reliability, and Alibaba has also made great efforts to ensure fair
trustworthiness. distribution of traffic and related resources to create
a fairer e-commerce environment by adopting a
variety of anti-cheating technologies to prevent Focusing on building risk management capabilities and
exploring cutting-edge technologies
malicious acts.
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Openness and co-governance


As promoted by the committee, Alibaba has engaged Technology (CIACT), which systematically introduces
in internal promotion (for education) of science Alibaba's initiatives and practices in data security
and technology ethics governance and motivated and privacy protection, consumer rights and fairness,
the technicians in attaching more importance deep synthesis governance, among others from the
to technologies and risks related to science and aspects of data, technology, management and co-
technology ethics through the interpretation of governance. By introducing external viewpoints to
typical industry cases, exchanges of cutting-edge jointly assess and monitor the efforts of Alibaba
technologies and governance trends, sharing of Group, we hope our governance experiences
internal practice cases, internal and external expert can provide insights for the governance of other
seminars, etc., thereby raising the science and companies.
technology ethics awareness and capabilities of all
staff.

Alibaba has established the Alibaba science and


technology ethics governance advisory board,
introducing external perspectives and supervision Awards for multi-party collaborative content
by bringing on seven experts from the fields of governance technology
science and technology, law, public administration,
In May 2023, the "Key Technologies and Applications of Content Governance
philosophy, etc. to establish an independent advisory
in Complex Internet Environment" project, a research achievement made by
board to jointly analyze and assess the difficulties
Alibaba in collaboration with the University of Chinese Academy of Scien-
we encounter. In FY2023, Alibaba held external ces, the Institute of Computing Technology of Chinese Academy of Sciences,
committee meetings to promote the exchanges Zhejiang Lab and China Jiliang University, was awarded the Second Prize of
among internal and external members on technology 2022 Wu Wenjun AI Science and Technology Progress Award. Focusing on
and governance strategies related to science and cyberspace content governance, the Project centers around such challenges
technology ethics. The Alibaba group also helped as complex data forms, fierce attack and defense, and the massive resour-
in achieving the integration of self-discipline and ce consumption to conducting systematic research on intelligent content
heteronomy through such a multi-collaborative governance technologies, upon which the project has proposed a series of
governance mechanism. technologies and methods for intelligent governance in complex scenarios.
In particular, the technologies for complex data forms, and fierce attacks and
defenses have reached the international advanced level. The project team
Furthermore, Alibaba jointly released the Artificial
has led the formulation of 3 standards, obtained 55 invention patents upon
Intelligence Governance and Sustainable
approval, and published 50 academic papers.
Development Practice White Paper with the China
Academy of Information and Communications
Wu Wenjun Second Prize for Artificial Intelligence Technology Progress
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Appendix 1
ESG Key Performance Metrics Table

1. We apply the principle of operational control to define the boundaries of this GHG inventory. It covers those GHG emissions categories in
Scopes 1, 2, and 3 that are both significant for Alibaba in the year ended March 31st 2023 (FY2023) and measurable. The GHG categories
covered in this inventory include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs),
nitrogen trifluoride (NF3), and sulfur hexafluoride (SF6 ). In the results of the inventory, five greenhouse gases, CO2, N2O, CH4, HFCs, and SF6,
were found in this reporting period. Please refer to Appendix 4 for detailed Scope 3 emission inventory categories .
2. Total GHG emissions are the sum of Scope 1, Scope2(market-based) and Scope 3.
3. GHG emissions are calculated on market-based caliber
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Appendix 1
ESG Key Performance Metrics Table

4. Net GHG emissions equal to GHG emissions minus carbon offsets.


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ESG Key Performance Metrics Table

The clean energy


percentage of data centers7

5. The usage of diesel consumed by logistics vehicles are estimated values. In the future, we will further improve the accounting and reporting
of diesel usage by our own logistics vehicles
6. PUE is a ratio of the total energy consumption of a data center to the energy consumption of IT equipment. In this report, it is calculated for
data centers within our operational control during FY2023.
7. The clean energy percentage is a ratio of the clean energy consumption of a data center to total energy consumption. In this report, it is
calculated for data centers within our operational control during FY2023.
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Appendix 1
ESG Key Performance Metrics Table

8. The scope of employees data includes full-time employees of all the consolidated entities of Alibaba Group.
9. Management refers to employees who are responsible for managing and leading other full-time employees.
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Appendix 1
ESG Key Performance Metrics Table

10. The scope of employee turnover rate includes full-time employees of all the consolidated entities of Alibaba Group.
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Appendix 1
ESG Key Performance Metrics Table

11. The scope of training and health and safety data statistics includes the full-time employees in the businesses directly managed by Alibaba Group.
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Appendix 1
ESG Key Performance Metrics Table

11. The scope of training and health and safety data statistics includes the full-time employees in the businesses directly
managed by Alibaba Group.
12. The data come from work-related injuries and deaths recorded by Alibaba's human resources team and have been
verified by local authorities.
13. The work-related fatality rate = (Number of work-related fatalities / Total number of employees) * 100%.
14. The work-related injury rate = (Number of recorded work-related injuries / Total number of hours worked) * 1,000,000.
15. The suppliers here refer to those in the categories of media, events, service, engineering, office IT, and logistics who have
completed registration in Alibaba’s procurement platform. The regional information is related to the location of the company
registration filled in the supplier database, rather than the location where the supplier does business with Alibaba.
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Appendix 2
List of ESG Related Ratings and Awards
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Appendix 2
List of ESG Related Ratings and Awards
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Appendix 3
ESG Data Verification Statement
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Appendix 3
ESG Data Verification Statement
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Appendix 3
ESG Data Verification Statement
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Appendix 3
ESG Data Verification Statement
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Appendix 3
ESG Data Verification Statement
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Appendix 4
Greenhouse Gas Inventory and Carbon Methodology
This inventory covers Scopes 1, 2, and partial Scope 3 GHG emissions of Alibaba The inventory is based on ISO14064, IPCC guidelines and other applicable laws and
Group in FY2023 within the organizational and reporting boundaries. The types of regulations. The details are shown below:
GHGs involved in this inventory include: carbon dioxide (CO2), methane (CH4), nitrous
oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), nitrogen trifluoride • ISO 14064-1: 2018 Specification with Guidance at the Organization Level for
(NF3) and sulfur hexafluoride (SF6). Through the inventory, five types of GHG emissions Quantification and Reporting of Greenhouse Gas Emissions and Removals
including CO2, N2O, CH4, HFCs and SF6 are involved during the reporting period.
• ISO 14064-3: 2019 Specification with Guidance for the Inventory and Validation of
In accordance with1) ISO 14064-1: 2018 Specification With Guidance at the Greenhouse Gas Statements
Organization Level for Quantification and Reporting of Greenhouse Gas Emissions
and Removals, 2) Greenhouse Gas Protocol: Corporate Accounting and Reporting • Guidelines for Accounting and Reporting Greenhouse Gas Emissions - China Public
Standard, 3) Greenhouse Gas Protocol: Corporate Value Chain (Scope 3) Accounting Building Operation Units (Enterprises) (Trial)
and Reporting Standard, 4) ISO 14064-3: 2019 Specification with Guidance for
the Inventory and Validation of Greenhouse Gas Statements and other applicable • Greenhouse Gas Protocol: Corporate Accounting and Reporting Standard (Revised
laws, regulations, and related standards, we conducted an inventory of Alibaba’s Edition)
GHG emissions and removals during the inventory period (FY2023). GHG emission
• Greenhouse Gas Protocol: Corporate Value Chain (Scope 3) Accounting and Reporting Standard
activity data strictly meet the quality requirements of relevant primary and secondary
activity data. The emission factors come from the 2006 IPCC Guidelines for National
• 2006 IPCC Guidelines for National Greenhouse Gas Inventories
Greenhouse Gas Inventories published by Intergovernmental Panel on Climate
Change (IPCC) in 2006 and 2019 Refinement to the 2006 IPCC Guidelines for National
• 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories
Greenhouse Gas Inventories published in 2019, 2019 China Energy Statistical
Yearbook and other authoritative references. All processes follow CEC's internal GHG
• Other applicable laws, regulations and related standards
emission inventory quality control procedures, and strictly meet the requirements of
the ISO14064-3 standard.
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Appendix 4
Greenhouse Gas Inventory and Carbon Methodology
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Appendix 5
Climate-related Risks and Opportunities Assessment Report
Combating climate change challenges and achieving carbon neutrality is among Alibaba's Governance
top ESG topics. Fully aware of the significant impact of climate change on human society and
economy, Alibaba brings together technological innovation and stakeholder ecosystem to Alibaba establishes climate change governance system with reference to the TCFD framework
tackle the climate challenges, actively responding to China’s Carbon Peak and Carbon Neutrality within our three-layer ESG governance system.
Policy as well as the long-term global climate change goals and agenda based on the Paris
Agreement. In 2021, Alibaba announced our commitment to carbon neutrality.

The Task Force on Climate-related Financial Disclosures (TCFD) provides a comprehensive


framework for companies to respond to the future climate risks strategically and help achieve
the long-term sustainability of business. Disclosing climate-related information systematically
using the TCFD framework is an important step to strengthen our ESG governance and strategy
as well as participate in global actions to tackle climate change. We actively identify, assess and P193
manage climate-related risks and opportunities, including forward-looking climate scenario
analysis, and undertake the integration of climate risks into our enterprise risk management
system. We will continue to improve transparency in our disclosures, strengthen climate
resilience, and pursue potential opportunities to make new progress.

The four core pillars of the TCFD framework


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Appendix 5
Climate-related Risks and Opportunities Assessment Report
We are well aware that addressing climate change and achieving carbon neutrality requires broader Integrating climate change into our business strategy and decisions is crucial for us to understand,
participation. As such, we are actively involved in advocating for climate solutions, especially in promoting mitigate and adapt to, and manage its direct impact to our business, as well as grasp the opportunities in
technological innovation and stakeholder ecosystem to achieve carbon reduction and climate resilience. sustainability transition. To understand the potential impact of climate risks and opportunities to Alibaba's
We actively organize and participate in international and domestic alliances, promoting collaboration, and strategy, business modes, financial planning and resilience, the climate change working group coordinated
work with authoritative institutions for setting and promoting standards. the climate scenario analysis for the Group systematically.

For more details:please refer to Chapter 1 Engaging and enabling decarbonization through our In accordance with the recommendations of TCFD, we adopted two scenarios, a high emissions scenario
platform ecosystem (Scope 3+) P32 and a mid-low emissions scenario, to test the resilience of our business under physical risk pressures by
2060. Also, a combination of net-zero scenarios in comparison with baseline policy scenarios were used to
Daniel Zhang, our Chairman and CEO, co-chaired the board of the Consumer Goods Forum (CGF) from identify risks and opportunities from policy and market changes that Alibaba would face by 2050 under a
2021-2023, which aims to drive positive changes in the global consumer goods industry. In FY2023, we society-wide green transition scenario.
worked with CGF community in China to focus on driving innovation and practices in reducing both GHG
emissions and plastic pollution in the consumer goods industry.

We play a positive role in major conferences and organizations with international reach. In FY2023, we co-
hosted the Digital Economy and Low-carbon Innovation Forum at the inaugural China Green Low-carbon
Innovation Conference, as well as promoting advocacy and collaboration on technology and platform
innovation at the United Nations Climate Change Conference (COP27). Alibaba's internal experts serve in
a number of international and domestic professional organizations, such as the Science Committee of
the United Nations World Adaptation Science Program (WASP), and the Technical Committee on Carbon
Peaking and Carbon Neutrality of the Chinese Society for Environmental Sciences (CSES).

Strategy

With thorough understanding on the importance and urgency of climate change from global to regional scales,
we first developed the basic strategy to achieve Alibaba’s carbon neutrality pledges, by adhering to the principles
that direct carbon reduction takes precedence over carbon removal, and carbon removal takes precedence
over offsets. This strategy is aligned with international standards to substantially reduce the atmospheric GHG
concentrations and is consistent with the basic principles of the goals of the Paris Agreement. Our carbon
neutrality strategies are built upon three pillars "energy transition, technological innovation and stakeholder
ecosystem". We also see potential opportunities to accomplish new and greater business and social value that
comes from actively tackling climate change. For instance, we coined the Scope 3+ concept and set a Scope 3+
goal to proactively lead carbon reduction activities within a wider scope and deal with significant transition risks,
such as political and economic change, and shifting consumer needs.
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Appendix 5
Climate-related Risks and Opportunities Assessment Report
We identified a range of climate risks and opportunities related to Alibaba by integrating findings from industry research and internal communication and analyses, with expert support. We conducted an initial round of impact assessment on
Alibaba's business model and financial situation under different scenarios. Ten material climate risks and opportunities are included in this report. The following tables provide detailed descriptions of the material impacts, impact periods, and
selected measures to manage risks and capture opportunities for the identified climate risks and opportunities

16. The impact period: S is for short term (0-3 years); M is for medium term (3-10 years), L is for long term (more than 10 years). The impact period is estimated based on the temporal variation of the parameters’ value under the selected climate scenarios.
17. For more details, please refer to 2022/2023 Environmental, Social and Governance Report of Sun Art Retail Group Limited, Chapter 3 Environmental-friendly operation and Green Development.
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Appendix 5
Climate-related Risks and Opportunities Assessment Report
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Appendix 5
Climate-related Risks and Opportunities Assessment Report
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Appendix 5
Climate-related Risks and Opportunities Assessment Report
Case: Enhancing the resilience of cloud infrastructure to physical risk

Alibaba's businesses may be adversely affected by natural disasters such as earthquakes¹⁸, blizzards, storm surges, floods, droughts, fires, etc . Cloud computing is Alibaba's core business. We have identified and assessed
the impact of physical climate risks, such as floods and extreme heat, for cloud infrastructures including data centers and servers, and improved the management system for combating physical risks in the full operating
life cycle of site selection, design, construction, operation and maintenance, aiming to provide more climate-resilient cloud computing services.

18. During site selection, we comprehensively consider the local policies of data center investment and construction, and historical records of earthquakes to avoid construction in high-risk areas. In the design and construction process, we adopt the key fortification category (Class B) in data
center design, and raise the structural seismic level to the first-class seismic standard. An Emergency Response Plan (ERP) has been established and no off-design situation had occurred by 31 March, 2023.
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Appendix 5
Climate-related Risks and Opportunities Assessment Report
Risk management

Alibaba regularly identifies, assesses and manages potential climate risks and integrates them into the Group's risk management system. In FY2023, we conducted a comprehensive climate change risk and opportunity
assessment to identify potential transition and physical risks and opportunities in the future, and worked with risk management and business teams to analyze the potential climate risks and opportunities, assess their
impacts, and develop strategies for risk mitigation and adaptation.

We identified and managed climate change risks and opportunities based on the following processes:

1. Define business context - Through meetings with the Group's climate- 2. Identify a list of climate-related risks and opportunities - Based on
related departments and business units, we built internal consensus on the results of interviews with the Group's climate-related departments
the impacts of climate change, sorted out typical business models and and business units, combined with industry research, we further
value creation paths of each business, and brainstormed and discussed identified and explored the external drivers and internal core impacts of
potential climate risks and opportunities for the Group and each business. climate risks and opportunities, and produced a list of climate risks and
opportunities.

4. Form a systematic management system - We are exploring 3. Conduct scenario analysis - We selected appropriate climate
and improving our climate risk management system. We released scenarios, specified the time horizon for analysis, and conducted
the Alibaba Group Risk Management General Outline, which defines scenario analysis for the list of climate risks and opportunities using
basic principles, organizational structure, working mechanism and climate scenario parameters that were highly compatible with the climate
responsibilities for risk management, so as to improve the Group's overall scenarios. We considered and assessed the potential impacts of climate
risk management capability and ensure the Group's safe operation and risks and opportunities in terms of time horizon, likelihood of occurrence,
sustainable development. The climate change working group and the financial materiality and other factors to identify and prioritize key climate
group-level Risk Management Committee have cooperated to integrate risks and opportunities of greater significance that could have a material
the identified climate risks into the Group's risk catalog system and to financial impact on Alibaba.
incorporate climate opportunity planning into our ESG strategy. We
have systematically developed response measures to climate risks and
opportunities in some of our businesses, and will expand and deepen
this work and regularly update our assessment of the impact of climate
risks and opportunities and the effectiveness of our countermeasures.
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Appendix 5
Climate-related Risks and Opportunities Assessment Report
Metrics and targets We believe that transparency of our GHG emissions data and our progress is key to achieving carbon
neutrality. We continuously track our progress towards our goals and disclose our progress in our ESG
In 2021, we released the Alibaba Group Carbon Neutrality Action Report, putting forward the three goals reports, including performances in carbon emissions, energy use, energy efficiency, etc., as shown in:
of "achieving operational carbon neutrality, halving the carbon intensity of the value chain, and facilitating
ecosystem carbon reductions of 1.5 gigatons", and committed to joining the Science-based Targets Initiative Appendix 1 ESG Key Performance Matrics Table P208
(SBTi). We actively engage upstream and downstream value chains, as well as consumers and companies on
our platform to jointly promote the achievement of our targets, and actively facilitate business groups and In addition, we provide detailed information on our climate strategy and performance to CDP, a global
companies to carry out their own climate risk and opportunity analysis and set and publish relevant targets. disclosure platform. We responded to the CDP Climate Change questionnaire for the first time in 2022,
As of March 31, 2023, Alibaba Cloud and Sun Art Retail have taken the lead in publishing their carbon receiving a B score in climate information disclosure.
neutrality targets (see table below); as the new organizational and governance structure is completed, the
climate change working group will also coordinate more business groups and companies to embark on the
relevant work, including target setting and progress tracking.
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Appendix 6
Stakeholder Engagement and Materiality Assessment
Alibaba actively communicates and works with our various stakeholders, responds to their expectations, and continuously strives to create sustainable value for all. This is the
cornerstone of Alibaba's long-term business and ESG agenda. We fully consider the wide range of interrelationships and influence of our businesses and platforms on stakeholders,
including consumers, employees, shareholders and investors, and government regulators, as well as business partners, communities, the environment, and other stakeholders. We
communicate with them in diverse ways, respond to their concerns and expectations timely, and continuously improve our business and ESG strategies and actions. We maintain
open communication channels and healthy relationships with our stakeholders, who provide an invaluable reference for Alibaba to identify the most relevant and important
sustainable development opportunities, strengthen our capacities and actions, and improve the quality of information disclosure.
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Appendix 6
Stakeholder Engagement and Materiality Assessment

Materiality Assessment
Our material issues encompass what matters most to our business, ESG goals, and stakeholders. Maintaining awareness of these issues is critical for identifying and managing our
risks and opportunities and effectively responding to stakeholder expectations.

In FY2023, on the one hand, we continued to make reference to relevant sustainability frameworks (including GRI and SASB), requirements by stock exchanges (including Hong Kong
Stock Exchange, HKEx), recommendations from rating agencies, domestic and international policies (including SDGs) and peers best performance to benchmark our material issues.
On the other hand, under the supervision of the Alibaba Group's sustainability steering committee, we carried out in-depth study on domestic and international macroeconomic
policies, reviewed and analyzed ESG issues based on industry trends and business development perspectives, etc. At the same time, we also extensively communicated with
government departments, industry associations, investors and other stakeholders for their feedback and suggestions.

Based on the Alibaba seven-petal ESG flower, we eventually constructed the following ESG materiality matrix.
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Appendix 7
Progress of United Nations Global Compact
Alibaba became a party to the UN Global Compact in February 2021. Our Chairman
and CEO, Daniel Zhang, continues to support UNGC and its principles. We take a
responsible, principles-based, and integrated approach and are committed to
the UN's development goals, conducting business in a responsible manner, and
becoming a strong, long-term partner of the UN to fulfill its commitments to society.
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Appendix 8
Report Indicator Index
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Appendix 8
Report Indicator Index
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Appendix 8
Report Indicator Index
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Appendix 8
Report Indicator Index
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Appendix 9
Important Legal Information
This report contains forward-looking statements. These statements are made under Information referenced in this report, including other Internet sites and third-
the "safe harbor" provision under Section 21E of the U.S. Exchange Act, and as defined party reports and publications, is not incorporated into this report. For the reader’s
in the Private Securities Litigation Reform Act of 1995. Forward-looking statements ca convenience only, this document may provide the addresses of, or contain hyperlinks
n be identified by words or phrases such as "may" "will" "expect" "anticipate" "future" to, third-party websites. Alibaba has not reviewed such hyperlinks and takes no
"aim" "estimate" "intend" "seek" "plan" "believe" "potential" "continue" "ongoing" responsibility for the content therein.
"target" "goal" "is/are likely to" or other similar expressions. These statements include,
among other things, those about our ESG strategies and the effectiveness of our ESG The inclusion of information in this repor t should not be construed as a
strategies and initiatives, and those about our new organizational and governance characterization regarding the materiality or financial impact (or potential impact)
structure. of that information. For more comprehensive information about our results and
operations, including risks that could adversely affect our results of operations and
Forward-looking statements involve inherent risks and uncertainties. A number of financial condition, please refer to our annual reports and other filings with the U.S.
factors, including those described in Alibaba’s annual reports and other filings with Securities and Exchange Commission and announcements on the website of the
the U.S. Securities and Exchange Commission and announcements on the website of Hong Kong Stock Exchange.
the Hong Kong Stock Exchange, could cause actual results to differ materially from
those contained in any forward-looking statement.

The forward-looking statements made in this report relate only to events or


information as of the date on which the statements are made in this report and are
based on current expectations, assumptions, estimates and projections. Alibaba
undertakes no obligation to update any forward-looking statements to reflect events
or circumstances after the date on which the statements are made or to reflect the
occurrence of unanticipated events, except as required under applicable law.
Working together to
give our children a
sustainable future.

Alibaba's Xiaoman
employee`s child (7 years old)
Alibaba Group Holding Limited

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