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1 2020 JD.Com Environmental, Social and Governance Report Contents 1 2020 JD.com Environmental, Social and Governance Report Contents About JD.com 01 Overview Supplier Management Report Profile 02 Supplier Admittance and Compliance 33 Letter from the Chairman 03 Management Statement from the Board 05 Supplier Environmental and Social Risk 33 ESG Governance System 05 Identification Management Strategic Position, Mission, Vision, and Values 06 Supplier Digital Management 34 Corporate Social Responsibility Strategic 07 Framework Materiality Assessment and Stakeholder 09 Product Responsibility Engagement Platform Management 36 Special Topic: Combating COVID-19 Quality Management 36 Intellectual Property Protection 37 Content Governance 38 Emergency Assistance 11 Customer Service 39 Science and Technology 11 Organizations and Corporate Clients Growth 40 Protecting Public Health 12 Comprehensive Assistance to Recovery 12 Community Responsibility Corporate Governance Corporate Philanthropy and Social 44 Responsibility Internal Control and Compliance 14 Focus Areas and Practices 45 Management Information Security 15 Anti-corruption 17 Appendix Appendix 1: Key Performance 47 Environmental Protection Appendix 2: Content Index 49 Appendix 3: GRI Standards Content Index 51 Green Operation 19 Appendix 4: External Verification Certificate 53 Low-carbon and Green Supply Chain 20 Green Lifestyle Advocacy 23 Working Environment Human Resource Compliance Management 27 Ensuring High-quality Employment 28 01 2020 JD.com Environmental, Social and Governance Report About JD.com JD.com is a leading technology driven e-commerce company transforming to become the leading supply chain-based technology and ’ service provider. The company s cutting-edge retail infrastructure seeks to enable consumers to buy whatever they want, whenever and wherever they want it. The company has opened its technology and infrastructure to partners, brands and other sectors, as part of its Retail as a Service offering to help drive productivity and innovation across a range of industries. JD.com is the largest retailer in China, a member of the NASDAQ100 and a Fortune Global 500 company. 02 2020 JD.com Environmental, Social and Governance Report Overview Report Profile Release Form of the Report “ ” This Environmental, Social and Governance (hereinafter referred to as ESG ) report is distributed electronically in Chinese and English. Reference and Principles This report references the United Nations Sustainable Development Goals (UN SDGs), the GRI Standards issued by the Global Sustainability Standards Board (GSSB), the ESG Reporting Guide from the Nasdaq Stock Market, industrial standards prepared by the Sustainability Accounting Standards Board (SASB), and the ESG Reporting Guide from the Hong Kong Stock Exchange (HKEX). The report also considers the four disclosure principles of Materiality, Quantitative, Balance, and Consistency. Reporting Scope The report aims to provide information on the ESG-related performance of the Group from January 1 to December 31 of 2020, and on material issues and boundaries identified by materiality analysis. Source of Information ’ ， The information and data in this report are mainly from the Group s database, internal statistical reports, and public information including prospectuses, annual reports, and media releases. Currency Unless specified, the monetary amounts shown in this report are all presented in RMB. Referential Description “ ” “ ” “ ” “ ” For ease of presentation, JD, the Group, and we all refer to JD.com. Contact Us We value your feedback and opinions, and appreciate you emailing us at [email protected], or mailing a letter to JD.com, No. 18 Kechuang 11 ’ Street, Building A, Floor 20, Beijing Economic-Technological Development Area, Beijing, 100176, People s Republic of China. For more information, please visit our official website at https://ir.jd.com/. 03 2020 JD.com Environmental, Social and Governance Report Letter from the Chairman Powered by Technology for a More Productive and Sustainable World 2020 was an extraordinary year for JD and the world. We witnessed the systematic influence of public health risks applied to the global economy, environment, and society. According “ ” to the Global Risks Report 2021 issued by the World Economic Forum, the pandemic has exacerbated the global economic recession, social inequalities, and societal divisiveness, while introducing increased uncertainty for ’ the world s development prospects. In terms of risk likelihood and impact for the next decade, extreme weather, climate action failure, human-led environmental damage, public health crises, and biodiversity loss constitute the five most significant risks globally. Actively seeking solutions to these risks will bring new growth opportunities to the post-pandemic world. ’ ’ markets. In this context, the world s people s livelihoods, supporting the More people recognize the importance leading companies have updated economy, and stabilizing employment of building a community with a shared their sustainable development goals with a strong social responsibility future for humankind and promoting and strengthened their mission and mission and technological means. sustainable development. Currently, commitment to the future. JD is one With technology, we respond to more than 20 countries and regions of these leading companies—in 2020, urgent anti-epidemic needs, stabilize we released a new group mission— prices, and ensure supplies. With around the world—including China— “ ” “ ” Powered by Technology for a More new infrastructure, we support the have committed to zero-carbon ’ ambitions, and major economies have Productive and Sustainable World. full recovery of China s economy devoted themselves to a green recovery. and all efforts to decisively eliminate Digital and intelligent technologies have ’ ESG investment that incorporates poverty, and safeguard everyone s become drivers for JD to accelerate environmental and social factors health. This has also allowed us to gain innovation during this pandemic. At into the overall risk assessment of widespread social recognition and different stages of the crisis, by relying enterprises, and pays more attention to trust from consumers. Encountering on the Digitally Intelligent Social Supply long-term value creation, is becoming a the downward pressure of the global Chain, JD has created social value in mainstream trend of the global capital economy, JD has shown strong fighting COVID-19, through protecting 04 2020 JD.com Environmental, Social and Governance Report resilience. In 2020, JD achieved a total net revenue of RMB 745.8 carbon neutrality by 2060. JD is accelerating its own low- billion yuan, a year-on-year increase of 29.3%; at the same time, carbon development through technological means, promoting our annual net number of active customer accounts increased by the green transformation of the industry, and leading society nearly 110 million. More importantly, with employment a priority toward green consumption. Our annual average power usage “ for individuals and families, JD functioned as an employment effectiveness (PUE) of our green data centers has been declining ” ’ stabilizer. In 2020, the number of full-time employees in JD s year by year and is currently below 1.3. JD Logistics (JDL) has system reached 314,000, a year-on-year increase of 38.3%. become the first logistics company in China to join the Science Based Targets initiative (SBTi) and announce its greenhouse Digital intelligent transformation is becoming a key driving force gas (GHG) emissions reduction goal. Furthermore, the types of for the global post-pandemic economic recovery. According to “ ” green products on our retail platform have exceeded 100 million. the latest Future of Jobs Report 2020 released by the World We hope to seize the historical opportunities of this new round Economic Forum, digital transformation will create nearly 100 ’ of technological revolution and industrial transformation, million new job opportunities worldwide by 2025. In China s exert the ecosystem influence through our Digitally Intelligent Outline of the 14th Five-Year Plan (2021-2025) for National Social Supply Chain, and provide more innovative solutions for Economic and Social Development and the Long-Range “ the global response to climate and environmental risks with Objectives Through the Year 2035, accelerating digitalization ’ ” innovative technology. At present, JD s AI technology has shown and constructing Digital China is brought up as a key strategy. “ great advantages in terms of energy savings and emissions In 2020, JD announced its new position as a supply chain-based ” reduction for thermal power generation companies. technology and service provider. Through artificial intelligence (AI), big data, cloud computing, the Internet of things (IoT), It is our first time issuing an ESG report. We hope to fully respond ’ blockchain, and other digital intelligence technologies, JD to investors concerns. We will continue improving our ESG provides new development momentum for the whole society. governance structure and system, enhancing regulatory and We established the Customer-to-Manufacturer (C2M) initiative to legal compliance, information security, and operational safety, “ ” help over 1,000 brand enterprises achieve smart manufacturing therefore responding better to external stakeholder expectations upgrades. We launched integrated supply chain and logistics while realizing internal growth. As we gradually improve our technology solutions to reduce the overall cost and increase ESG governance, we will
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