How JD.com is Reducing its Environmental Footprint
Founded by Richard Liu, JD.com is a leading online retailer in China that’s often compared to Amazon. Liu experienced success early on when he opened a physical store in China and expanded to a dozen locations.
After China’s SARS epidemic, Liu successfully launched an online store with a user-friendly platform that was well received by customers. The company continued to grow and establish partnerships, while maintaining a commitment to innovation in the retail sector. Offering same-day and next-day delivery to its 300 million+ users, JD.com became popular for its products and outstanding delivery options. In fact, the company has delivered packages to more than a billion customers.
Reflecting on the environmental impact of the business, the leadership team at JingDong constantly pursues opportunities to boost transparency and sustainability. The company’s most recent Corporate Social Responsibility Report demonstrates the great strides made in the implementation of policies, practices and processes that support sustainability. They continue to lead by example and offer practical solutions for ways to positively impact the environment. JD.com even provides opportunities for the general public to participate in endeavors related to social responsibility.
JD is committed to overhauling their infrastructure and procedures, as well as other aspects of the business to champion key initiatives that are focused on reducing its environmental footprint. They have developed and implemented a solar photovoltaic power generation system in their Shanghai logistics center, which aims to reduce carbon emissions. In fact, they are integrating a rooftop photovoltaic power ecosystem that will be the largest of its kind by 2030, as it will encompass more than 77 square miles.
Another major accomplishment towards environmental endeavors is the use of vehicles with what’s called “new energy” that includes all-electric, hydrogen-powered and hybrid units that run on renewable fuel or alternative powertrain. These vehicles will consist of hydrogen-powered delivery trucks, solar-powered tricycles and electric vans that only emit water. JingDong plans to replace their entire fleet of delivery trucks with new energy vehicles to optimize the sustainability of their delivery processes.
Another accomplishment is their implementation of the Green Stream Initiative in collaboration with partners and peers in the retail industry. This initiative will also optimize how resources are used by the implementation of innovative technologies. JD has started the JD Logistics Green Fund, which promotes consumption that is sustainable. For example, they used what’s called green boxes for delivering products to customers throughout the year. These are boxes that are recyclable, and 100,000 have already been used. They are made of thermoplastic resin that’s lightweight and will reduce the use of paper.
Another way in which Richard Liu and the executives at JD support local communities in China is by recruiting individuals from some of the poorest counties. They have hired more than 25,000 employees from a wide-range of different backgrounds through recruiting practices that are inclusive, which has promoted upward mobility and financial independence. In addition to the high-end luxury products they sell, JingDong also offers low-priced essentials, which has helped to stimulate local economies.
JD has established a loyal following among many groups. For example, they found a way to deliver products to remote villages when their competitors were unable to do so, which cultivated a sense a loyalty because the communities no longer felt neglected. The people in these areas also appreciated and relied on prices that were consistently low, which has helped to fulfill their daily needs. JD has shipped products to remote areas through the use of drones. In fact, they have the largest fleet of drones in the world, and they even offer next-day delivery to rural locations.