Vipshop Releases 2022 Environmental, Social and Governance（ESG）Report

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Vipshop sets ESG strategy and targets carbon neutrality by 2030, achieves 50% reduction in Scope 3 carbon emissions

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Vipshop pledges to achieve carbon neutrality in its own operations and a 50% reduction in Scope 3 carbon emission intensity by 2030. The company has established a governance structure and taken a comprehensive approach to carbon reduction across its value chain. Vipshop's logistics centers have implemented energy-saving measures and recycled millions of cartons. The company also strengthened its core business and improved customer satisfaction.
Vipshop's charitable contributions exceeded $76.7 million, supporting causes such as women's empowerment and aid for underprivileged communities.

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08/28/2023 - 08:00 AM

Sets Up ESG Strategy and Targets Carbon Neutrality in its Own Operations No Later Than 2030

GUANGZHOU, China, Aug. 28, 2023 /PRNewswire/ -- Vipshop, a leading online discount retailer for brands in China ("Vipshop" or the "Company"), has released its 2022 Environment, Social, and Governance (ESG) Report (hereafter referred to as the "Report"). The Company pledges to achieve carbon neutrality in its own operations and a 50% reduction in Scope 3 carbon emission intensity, no later than 2030.

In 2022, Vipshop established a three-tiered governance structure that includes its Board of Directors, an ESG Committee, and an ESG Task Force, according to the report. The Company's ESG strategy, dubbed "co-creation of a new sustainable life," emphasizes five areas: new sustainable choices, happy consumption, proactive inclusivity, beautiful society, dependable compliance.

A Pledge to Achieve Carbon Neutrality in its Own Operations No Later Than 2030

Vipshop has set ambitious environmental goals, pledging to achieve carbon neutrality in its own operations and a 50% reduction in Scope 3 carbon emission intensity, no later than 2030. As outlined in the report, Vipshop has taken a comprehensive approach and rigorously assessed its potential for carbon reduction across its value chain. The Company actively champions energy-saving measures to minimize emissions across various scenarios. This involves joint efforts from consumers, partners, and other key stakeholders to cultivate a sustainable, low-carbon ecosystem.

In 2022, Vipshop's Logistics Centers recycled around 21.19 million cartons, cutting carton use by 2,556 tons and reclaiming 16,774 tons of packaging materials. Additionally, the Company implemented photovoltaic energy systems at several logistics sites and its Shan Shan Outlets, generating 61,538 MWh of solar power during the course of the year.

Meeting Customer Expectations for an Enhanced Quality of Life

In 2022, Vipshop's core business has been strengthened through a series of enhancements in products, operations, and technology. This bolstered Vipshop's ability to offer unique and a more diversified product offerings, aligning with customers' aspirations for an improved quality of life.

Vipshop has created "V-pulse", which defines an upgraded plan for all stages of operations including product selection, supplier logistics and after-sales service, in order for customers to feel the "pulse-like" customer service, close to their hearts.

With a specialized team dedicated to effectively tackling customer concerns, the Company strives to align closely with customer expectations and sentiments. Vipshop's customer problem solving satisfaction rate reached 98.01% in 2022.

Creating a Safe, Comfortable, and Inclusive Working Environment

In 2022, Vipshop launched specialized training courses that focus on fostering innovation and promoting individual growth among employees. The program has seen universal participation, with 100% of the workforce having completed it successfully. Concurrently, the Company continues investing in employee empowerment, urging frontline staff to further their education and skills.

In 2022, Vipshop prioritized a safe, inclusive workspace, with a special emphasis on creating a supportive environment for women. By year's end, women constituted 52.6% of Vipshop's workforce, outpacing the average level of 43% cited in Bloomberg's recent Gender Equality Index (GEI). Additionally, the Company initiated targeted recruitment to assist individuals with disabilities in obtaining dignified employment opportunities.

Embracing Simplicity, Sincerity, and Love in Charity Work

Vipshop champions causes such as women's empowerment, rural revitalization, and aid for underprivileged communities. In partnership with stakeholders, the Company has developed sustainable philanthropic initiatives, exemplified by programs such as V-Love Mothers and V-Love Charity.

By the end of 2022, Vipshop's charitable contributions surpassed RMB558 million (approx. USD76.7 million). Notably, V-Love Mothers initiative has supported over 110,000 struggling single-parent families. Additionally, V-Love Charity program, in collaboration with various community organizations, has introduced more than 31 outreach programs for underserved communities. The initiative drew participation from over 13.44 million members, resulting in donations exceeding 20.1 billion V-Love points.