July 7, 2022

China’s top e-commerce giant, Alibaba presented its upcoming ambitious plan to grow its Southeast Asian e-commerce business to $100 billion. The same is planned to be achieved via transacted sales along with a pledge to reach carbon neutrality in its operations by 2030.

According to reports, the company unveiled its vision for its Southeast Asian e-commerce arm Lazada, while top executive Daniel Zhang also outlined its carbon emission goals during the same day.

The move by the company comes as it is looking overseas for sources of growth amid increased competition and a slowing economy in the Chinese market. It is also aiming to eventually have Lazada serve 300 million consumers.

About Lazada –

The Chinese e-commerce company took a controlling stake in Lazada in 2016, while in 2018 it invested an additional $2 billion to expand the business. For the last twelve months from September 2021, its gross merchandise volume reached $21 billion, with 159 million monthly active users.

Lazada’s e-commerce penetration in Southeast Asia is reportedly only around 11 percent while its annual consumers have reached only 34 percent of regional Internet users.

According to reports, the company’ executive Zhang in a separate filing also announced that by 2030 they are aiming to achieve carbon neutrality in its own operations. The company has planned to reduce the amount of emissions across its business ecosystem and supply chain by half.

In order to reduce carbon emissions, the company plans to use more renewables as well as energy-saving and efficiency-improving technologies.

Zhang mentioned that they will be mobilizing consumers, merchants, business partners and service providers to take part in their carbon reduction efforts, such as promoting green transportation options, the consumption of green products, encouraging reuse and resale of pre-owned goods.

The company’s pledge towards reducing its carbon footprint also coincides with China’s big push to achieving carbon neutrality by 2060, as the country is currently the world’s biggest carbon emitter.

Since then Chinese authorities have strictly placed energy targets on many of the country’s state-owned firms, even though most have struggled to dissuade themselves off coal consumption.