Vipshop Releases the Carbon Reduction Goals and Action Report

- Outlining its Roadmap for Achieving Carbon Neutrality and Promoting Green Consumption

GUANGZHOU, China, Jan. 24, 2024 /PRNewswire/ -- Vipshop, a leading online discount retailer for brands in China ("Vipshop" or the "Company") recently released its Carbon Reduction Goals and Action Report (the "Report").

The Report details Vipshop's robust efforts in reducing carbon emissions. These initiatives include increasing the proportion of clean energy usage, improving energy efficiency, advancing green logistics, formulating a green product evaluation system, and establishing carbon account platforms. The ultimate goal is to strive carbon neutrality in its own operations, promote the low-carbon development within the value chain, and contribute to societal green transformation.

Defining a clear roadmap for low-carbon development to achieve emissions reduction throughout the value chain

Vipshop has pledged to achieve carbon neutrality in its own operations and a 50% reduction in Scope 3 carbon emission intensity, no later than 2030. In pursuit of the goals, Vipshop has rolled out its green action roadmap that calls for optimizing equipment operations, advocating for distributed photovoltaic power generation, investing in green electricity, exploring the development and utilization of corporate carbon sinks, and engaging in carbon credit trading.

A key aspect of Vipshop's commitment is the Company's photovoltaic projects that increase the proportion of clean energy usage. Between January 1, 2022, and September 30, 2023, Vipshop's own photovoltaic power reached a cumulative total of 108,229.2 MWh. By 2023, the Company's headquarter building located in Guangzhou, China had successfully transitioned to 100% green electricity.

At the same time, Vipshop has been promoting eco-friendly practices in computing, procurement, logistics, and packaging. The Company is dedicated to managing and reducing carbon emissions across the value chain by actively collaborating with suppliers, logistics providers, brand partners, and other stakeholders.

Between January 1, 2022 and September 30, 2023, Vipshop's supplier packaging material recycling project resulted in over 43 million cartons being re-purposed, reducing carton usage by more than 20,000 tons.

Promoting green consumption to speed up the low-carbon economic development

Vipshop will deliver carbon reduction on both the production and consumer fronts by promoting green consumption and supporting the development of green industries that prioritize sustainable development.

The Company also encourages partners and consumers throughout the value chain to engage in carbon emission reduction through the development of carbon accounts and the expansion of carbon reduction scenarios. The initiative is integral in establishing a low-carbon ecosystem and hastening the decarbonization process.

As detailed in the Report, in 2023 Vipshop launched an internal-employee's carbon account platform named "V-Carbon" to engage employees to join carbon reduction actions. The digital platform is designed to track and record the actions taken by employees to reduce carbon usage based on carbon inclusion standards and methodologies, offering carbon credits as incentives. On the launch day, the platform recorded over 13,000 staff attendances.

Vipshop also plans to launch a green carbon account platform for consumers. This platform will allow consumers to earn carbon credits by purchasing eco-friendly products and practicing in low-carbon activities. The aim is to increase consumer awareness of green products and foster the transition towards green consumption.

Furthermore, Vipshop is in the process of developing a comprehensive green product evaluation system. The initiative aims to provide consumers with a wider range of green product options. After rolling out, the platform will showcase products that meet stringent green and low-carbon standards, highlighting their attributes in energy efficiency, emission reduction, and environmental friendliness.

The full report is available in Chinese at:

https://h5rsc.vipstatic.com/pc_res/pc_res/esg_res/report_20240109.pdf

SOURCE Vipshop