On May 30, JD logistics released the 2021 environmental, social and Governance Report (hereinafter referred to as ESG report). This is the first ESG report of JD logistics after its listing. It gives a panoramic view of JD logistics' performance in environment, society and governance in 2021.
The report shows that in 2021, JD logistics has helped more than 300000 enterprise customers reduce costs and increase efficiency, and served more than 1000 origin industrial belts. Under the system of JD logistics, 93% of districts and counties and 84% of towns and townships in China have reached the destination one day or the next day.
For JD with strong logistics, the development of supply chain is the top priority to determine its future direction. Therefore, green supply chain is also the focus of this ESG report.
After the report was released, duanyanjian, the project leader of JD logistics Qingliu plan, and Wenming, the product leader of the intelligent park of JD logistics supply chain solution department, were interviewed by Sohu technology and other media to tell the story behind the report in detail.
Duanyanjian mainly introduced the "youth flow plan" issued and implemented by JD in 2017. After five years of development, the "green flow plan" has made breakthroughs in many links, such as green storage, green transportation, green packaging and green recycling.
In terms of green warehousing, JD has completed the installation of photovoltaic power generation systems in 12 logistics parks nationwide, with an installed capacity of more than 100 MW in 12 parks and an annual power generation capacity of 160million kwh, which can be used by 50000 ordinary household users for one year. JD logistics Xi'an Asia No.1 intelligent park has become the first zero carbon logistics demonstration park in China's logistics industry, and the carbon neutralization work of Suqian "Asia No.1" intelligent logistics park has also started.
In terms of green transportation, JD logistics has put 20000 new energy vehicles into use in more than 50 cities across the country. In terms of green packaging, through the first promotion of the integrated design of branded products and express packaging, it has reduced 10billion one-time packaging for the industry. By 2021, the recycled packaging boxes in JD system have been used for more than 200million times, the utilization rate of transfer bags has reached 100%, 140million times a year, reducing more than 70million woven bags.
Among many achievements, JD logistics' establishment of the first carbon neutral Park in China has attracted much attention.
In March this year, Xi'an "Asia No. 1" intelligent logistics park was certified as carbon neutral. The park uses clean energy such as photovoltaic and wind power to meet the power demand of storage and sorting, which accounts for more than 95% of the total energy consumption of the park. Hydrogen energy is mainly used in other links such as transportation vehicles in the park. According to Wenming, Suqian and other large "Asia No. 1" parks will follow up relevant measures.
Besides JD logistics, green and low-carbon needs the efforts of the whole industry, so JD logistics is also using preferential policies to promote more upstream and downstream enterprises to achieve low-carbon and environmental protection.
"E-commerce, express delivery enterprises and brands should be linked. We have put forward the 'original packaging' model. If goods want to go through the e-commerce channel, they should meet the e-commerce logistics environment and the requirements that the original packaging can be delivered directly."
According to duanyanjian, at present, the "original packaging" model has been supported by many leading brand enterprises. However, for most small and medium-sized enterprises, they need to make packaging transformation, which may change their internal processes. They need to evaluate the benefits of doing this. Therefore, JD logistics has also linked with JD retail to bring the original packaging into the scope of green products and give some support to these businesses.
Duanyanjian believes that for enterprises, green carbon reduction will increase their costs in the short term, but in the long run, it will bring more competitive opportunities to enterprises and create more value for the industry.
In the process of this transformation, the demand of enterprises for talents has also changed. "We attach great importance to experts who understand many methodologies in carbon trading, as well as experts who have energy (such as hydrogen energy) knowledge reserves and supply chain logistics experience." The expression of civilization.
It is worth noting that JD logistics has set specific quantitative goals in the process of green transformation: compared with 2019, the total carbon emissions will be reduced by 50% by 2030.
The following is the actual record of questions and answers (with deletion):
1. What are the results of the Qingliu program
Duanyanjian: "Qingliu program" was launched in 2017, and it has been five years. In 2019, we began to study the scientific carbon target. In 2020, we also released the carbon reduction target for the next 10 years. By 2030, we will achieve 50% carbon reduction.
Green supply chain has also entered the era of scientific carbon emission. From the perspective of specific implementation, it can be roughly divided into four aspects.
The first is green warehousing, which mainly refers to low-carbon parks or carbon neutral parks. By the end of last year, JD group had completed the installation of 12 photovoltaic power generation systems across the country. The installed capacity of 12 parks reached more than 100 MW, and the annual power generation reached 160million kwh, helping 50000 ordinary household users use them for one year. In March this year, JD logistics Xi'an Asia No. 1 intelligent park also became the first zero carbon logistics demonstration park in China's logistics industry.
The second point is about green transportation. JD logistics has put 20000 new energy vehicles into use in more than 50 cities across the country. All self-supporting vehicles in Beijing have been replaced with new energy vehicles, which can reduce the emission of 400000 tons of carbon dioxide per year. In addition, we are also actively exploring new technologies such as hydrogen energy, and plan to complete the testing and putting into use of new energy vehicles and hydrogen energy in the first half of this year. In addition to new energy, we are also actively promoting the mode of multimodal transport. We will transfer rail to reduce energy consumption. For example, in 2021, the freight volume of transfer rail will reach 54900 tons, and the mode of green transport will be implemented in an all-round way.
The third aspect is green packaging. JD logistics launched the green packaging development strategy in 2015. To name a few representative directions, first, we launched the original factory direct delivery packaging mode in the industry to promote the integrated design of brand products and express packaging. In the logistics industry, many commodities need secondary packaging, which can reduce the use of one-time packaging. It has reduced 10billion one-time packaging for the industry. These 10billion one-time packaging are not only from JD channels, but also from other platforms. This model was first initiated and promoted by JD.
The second point is recycling packaging. There are three types of recycling packaging. We have recycling incubators, green flow boxes and recycling transfer bags. By 2021, our recycling packaging boxes have been used for more than 200million times, and our use rate of transfer bags has reached 100%. We can use 140million times a year, reducing more than 70million woven bags. The third green packaging is that we reduce the amount of packaging through new materials and new technologies. New materials replace conventional materials with some low gram weight or relatively thin materials. In terms of science and technology, we have applied the intelligent consumables recommendation system to automatically calculate and recommend the best matching carton model according to the size of commodities, which can reduce the problems of large boxes containing small objects and consumables waste. Through the above measures, we can reduce more than 240000 tons of paper and 35000 tons of plastic every year.
The fourth aspect is the green recycling project. The first is the launch of the carton recycling action in 2017. After door-to-door delivery, couriers can recycle the unused cartons in consumers' homes for secondary packaging. Including the cartons in our park, many cartons need to be disassembled if the brands want to enter the warehouse. These cartons can also be widely used, and nearly 500million cartons can be comprehensively utilized every year. In addition, we also worked with brands to promote the recycling of commodity packaging. Last year, we jointly launched the "rebirth project" with P & G, which is to use our recycling packaging system to recycle the idle plastic bottles in consumers' homes, and then generate an environmentally friendly plastic runway for public donations.
Duanyanjian: to build green infrastructure, a lot of costs must be invested in the early stage, but green low-carbon has become the only way for enterprises to achieve sustainable development. In the long run, low-carbon development can bring more competitive opportunities for enterprises and create more value for the industry.
If recycled packaging is used, the recycled transfer bag used in JD logistics sorting center can replace the disposable polypropylene woven bag. In the early stage of the circulation transfer bag, system R & D resources, including intelligent chip reading equipment, etc., need to be invested in the early stage, and the process transformation may also increase some manpower. However, because our consumption of woven bags is very large, we can reduce the number of woven bags by 70million every year after using the recycled transfer bags. If each one yuan is saved by 70million, our logistics cost can be greatly reduced. In general, it can be reduced by more than 30% compared with the disposable packaging.
Civilization: in terms of cost control, such as the recycling of packaging consumables. We are making cloud boxes that can be recycled. The cost of recycling feels high, but after calculation, if we try to recycle them at least 50 times, it may not be high, or even lower.
In most cases, these boxes are easily taken back by the express brother when performing the contract. Moreover, the design of the recycling box is different from that of ordinary boxes. It can be folded. A box can be folded into a small flat plate, which is easier to store. Moreover, we can give consumers some Jingdou points feedback, so that consumers can feel and have a sense of participation.
In the process of realizing green carbon reduction, does the corresponding talent demand change
Duanyanjian: the construction of green parks or carbon neutral parks requires many professionals, including the promotion and application of new energy vehicles and the release of scientific carbon targets. From the perspective of employment, it is necessary to increase some personnel reserves in green and low-carbon professional fields. Of course, this must be based on the positioning and development planning of their respective enterprises.
Civilization: experts in the carbon field, especially those with years of carbon management knowledge, are scarce. For example, there are many methodologies for carbon trading, which require years of accumulation and practical project experience. In addition, green carbon reduction mainly starts from changing the energy structure and optimizing the logistics operation efficiency. Therefore, we attach great importance to having experienced experts in energy (such as hydrogen energy) and supply chain logistics.
3. How to achieve green carbon reduction from the source
Duanyanjian: the topic of how to reduce packaging pollution has been discussed for several years. In my opinion, the so-called packaging pollution is mainly plastic packaging materials. At present, the recycling of cartons in society is very sound.
In the e-commerce channel, goods may fall for sevenoreight times or more from the packaging of e-commerce warehouse to the hands of consumers, because they need to be loaded, and there are primary sorting and secondary sorting. The environment is very bad. This is why for logistics enterprises and express delivery enterprises, they need to carry out secondary packaging protection for these commodities, because they want the safety of commodities.
Why use plastic bags? Because in terms of cost, it is cheaper than paper. For express enterprises, it can be used, but the cost increases a lot. The cost of degradable packaging bags is more than 4 times higher than that of traditional PE plastic bags. At present, the problem that restricts the one-time packaging pollution of the whole enterprise is still the cost, which will cause great pressure to the enterprise.
Therefore, e-commerce, express companies and brands should be linked. We have put forward the "original packaging" mode. If commodities want to go through e-commerce channels, they should meet the e-commerce logistics environment and the requirements that the original packaging can be delivered directly.
At present, the "original packaging" mode has been supported by many leading brand enterprises. However, for most small and medium-sized enterprises, they need to make packaging transformation, which may change their internal processes. They need to evaluate the benefits of doing this. Therefore, we also linked JD retail to bring the original packaging into the scope of green products, and gave some support to these businesses.
4. Xi'an's "Asia No. 1" intelligent logistics park has obtained the certification of carbon neutralization, and Suqian's carbon neutralization park has also started. How is this realized and what is the logic behind it
Wenming: Why did you choose these two parks? There is one reason. These two parks are newly built, and the scale is relatively large. Now, all our parks with conditions will be equipped with PV, and those with wind power will be equipped with wind power. This is the most important consideration. The second step is to consider the transformation of the existing park.
There are two main aspects behind the cost growth. The first is infrastructure. The energy side infrastructure is wind power generation, which is determined by the specific area. On the other hand, the investment is about the intelligent microgrid. For example, some equipment, such as intelligent switches, should be installed in the park to achieve the effect of energy saving and carbon reduction.
At the logistics level, we will also add some Internet of things, artificial intelligence and other technologies to realize the energy efficiency optimization of logistics operation. This is what we have been doing, because there is no conflict between energy efficiency optimization and carbon reduction. When we do energy efficiency optimization, we will reduce carbon when we improve efficiency.
In the logistics park, our goal is to achieve neutralization, which is certainly not a carbon sink model. The logistics park has this condition. The main idea is to replace the traditional thermal power with green power.
In the logistics park, for example, warehouses and sorting plants are the largest emitters, accounting for about 95%. Previously, traditional electricity was mainly purchased. As long as we solve this problem through the change of energy structure such as photovoltaic and wind energy, we can basically achieve neutralization. In addition, if there are office buildings in the park, the consumption of office buildings is electricity.
Finally, it may involve the carbon emitted by transport vehicles in the park. In this part, our direction is to use clean energy, that is, to replace hydrogen energy, or to replace oil vehicles with trams.
5. How is it planned to achieve the goal of 50% carbon reduction by 2030
Duanyanjian: one is to reduce conventional electricity. The second is to reduce fuel consumption, which is also a way to help us quickly achieve the goal of 50% carbon reduction.
In addition, we are also building a low-carbon supply chain. JD logistics is the first logistics enterprise in China to join SBTI (scientific carbon goal initiative), so we are also advocating our suppliers and partners to plan carbon reduction goals and apply to JD logistics or SBTI. Our goal is to have 50% of suppliers make carbon reduction commitments by 2025.
Human civilization: in terms of transportation, there are probably two aspects. On the one hand, we are piloting hydrogen energy vehicles on some lines; The other is to further reduce energy consumption through technologies such as automatic driving. At this stage, if we cannot completely replace hydrogen energy, for example, the automatic driving technology from Shanghai to Jinan L3 can reduce energy consumption and drivers, which is the effect we have seen so far. By 2030, 100% new energy transportation will be realized.