JD.COM CORPORATE SOCIAL RESPONSIBILITY REPORT
01 As our company continues its This is a time of rapid development and As a part of this effort, we are actively journey, we are particularly innovation at JD.com. The company now serves embracing the United Nations’ Sustainable more than 300 million active customers in China Development Goals (SDGs). Recognizing the grateful to each of our partners. and has become the country’s largest retailer possibilities and the challenges that come With their participation, we and the world’s third largest Internet company with globalization, we see creating a green, have even more reason to be by revenue. sustainable value chain on a global scale as an MESSAGE excited and optimistic about absolute priority. We also take great pride in the future. Working together, Still, there is one question we must always ask our reputation for trustworthiness, which is the ourselves: apart from business success, what foundation of everything we do, and have been FROM we can play our part in helping does it mean for an enterprise like ours to be actively engaged in many charity programs such the world become more open, truly innovative? Good financial performance as disaster relief, poverty alleviation, education THE CEO inclusive and sustainable. is an indication of a well-run business that is and aiding the disadvantaged. effectively serving its customers, employees and partners. But success is unsustainable if a As our company continues its journey, we are company offers no additional value to society. particularly grateful to each of our partners. JD does this by creating an ecosystem— With their participation, we have even more something we refer to as sustainable reason to be excited and optimistic about the consumption—in which every part of our future. Working together, we can play our footprint, from the creation of a product, to its part in helping the world become more open, packaging, sale and delivery, is executed with inclusive and sustainable. the expectation that our impact on society and the environment will always be positive.
Richard Liu Founder and CEO, JD.com
Richard Liu Founder and CEO, JD.com
1 JD .COM CORPORATE SOCIAL RESPONSIBILITY REPORT 2 OUR MILESTONES 02
Starts as brick-and- Company begins JD launches JD begins offering Launch of TOPLIFE, a mortar electronics developing its own marketplace its retail technology dedicated platform shop in Beijing. logistics network. for third-party and infrastructure for luxury brands. sellers. as a service. JD Logistics becomes ABOUT JD independent subsidiary to better serve broader logistics market.
e World in th Tec any hno mp log Co y S ed ha 2017 st p u es Tr O t u 2018 s r o L M iv e e h s t M e N IS m IO SI o IS O JD.com officially started its online business in c V N e 2016 2004. On May 22, 2014, JD became the first B 2015 major Chinese e-commerce company to list on
New York’s NASDAQ stock exchange. In 2016
JD also became the highest ranked Chinese A c
internet company on the Fortune Global 500 h
i
e t
v
s
List. While continuing to achieve business and e
COMPANY CULTURE e
S B 2010 technology breakthroughs, we remain true to u
e c 2014
c h our original aspirations: to achieve success t e
s e s the right way, to actively fulfill corporate b
t 2007 h o 1998 t social responsibility, and to strive to become a e e R v i i company that creates the greatest value for the g r 2008 h t t S whole society. W 2004 a y VALUE
Following SARS JD expands to Tencent becomes First e-commerce Google becomes a epidemic, online begin covering a strategic company in the strategic partner and business launches. all consumer partner and world to deploy investor. P t ut the Customer Firs categories. investor. delivery drones.
Largest Nasdaq Walmart IPO of the year becomes a (ticker “JD”). strategic partner and investor.
3 JD .COM CORPORATE SOCIAL RESPONSIBILITY REPORT 4 OVERVIEW USERS EMPLOYEES 200 200 AND 1 top PARTNERS billion 170,000+ First Chinese internet company to make the Reach more than a billion Chinese consumers by 170,000+ full-time employees. 03 Fortune Global 200 list. leveraging strategic cooperation with Tencent. RAPID GROWTH 1 NO.1 170,000+ Tens of millions NO.1 among companies in China according to the Deloitte Global Powers of Retailing 2018 report. 170,000+ merchants on JD’s online marketplace. Tens of millions of jobs created by JD’s value chain. AT A GLANCE NO.1
China’s largest retailer, online or offline.
CROSS- CROSS-BORDER GLOBAL INVESTMENT BORDER LOGISTICS NETWORK 1000 1.5 hours Joint ventures GLOBAL DEVELOPMENT Global network covers 10+ cross- Same and next-day delivery in Joint ventures in Indonesia, Thailand etc. border ports, 110+ overseas China’s major cities. warehouses, nearly 1,000 global Some deliveries as fast as 1.5 hours. transportation routes.
LOGISTICS TECHNOLOGY
11.6 90 % 20,000+ million m2 hours Area of logistics infrastructure exceeds 11.6 million m2 as of Can deliver over 90% of orders same-day or next-day. Over 20,000 drone delivery runs completed. Q2 2018. DIVERSE BUSINESS
99 % NO.1
Largest e-commerce logistics infrastructure in China, Launched the world's first B2C automated fulfillment covering 99% of the country’s population. center.
5 JD .COM CORPORATE SOCIAL RESPONSIBILITY REPORT 6 Help alleviate poverty through Provide farmers with Provide green, safe, JD Foundation has donated to JD’s e-commerce platform and affordable and high-quality high-quality products many institutions to help low- infrastructure and the charity goods; build stable sales for consumers; provide income students complete foundation. channels for agricultural comprehensive occupational their studies, and has carried products and food to promote safety protection, medical out educational programs sustainable agriculture. care and other welfare to throughout China. 04 employees.
GOAL 1 GOAL 2 GOAL 3 GOAL 4
Provide equal opportunity for Reduce environmental Build photovoltaic power professional advancement to all pollution through initiatives generation systems for employees, including through such as the Green Stream warehouses; convert JD.COM PARTNERS business opportunities and Initiative, recycling programs, transportation fleets to new financial support for women promotion of biodegradable energy vehicles; promote who are entrepreneurs and plastic bags, The Forest electronic invoices and social workers. Stewardship Council (FSC) receipts; promote clean WITH THE UNITED certified paper and products, energy products. etc.
NATIONS GOAL 5 GOAL 6 GOAL 7
Create jobs for tens of millions Help the manufacturing Strongly support targeted of people in JD’s value chain; industry become more open, poverty alleviation At UNDP China, we firmly believe that the private drive economic development inclusive and sustainable; programs; reduce living sector is a key partner in pursuing sustainable by a co-created and shared participate in disaster relief costs and improve quality business model; protect and enhance resilience of of life for low-income and development goals (SDGs). We see countless employees‘ rights and provide people in disaster areas. disadvantaged groups; create opportunities for business to contribute to the them with fair and diversified job opportunities in rural implementation of the SDGs through commitments to career opportunities. areas by developing logistics infrastructure. inclusive business models, seeking shared values and committing to sustainable ways of operating. GOAL 8 GOAL 9 GOAL 10
Private companies are also indispensable in providing goods and services, financing social and economic Create smart city solutions Continuously improve user Strengthen energy investments, and creating innovative solutions with big data and AI experience while promoting conservation and emissions to help tackle development challenges. SDGs not technology and improve ideas of sustainable reduction; use clean energy only identify where we must be in 2030 to create the operational efficiency of consumption; empower in logistics, warehousing and transportation, environment, upstream manufacturing other operational processes. a sustainable world, they also outline new markets energy consumption, public industry through responsible and opportunities for companies all over the world. safety, logistics and smart sourcing and supply chain business to ensure better management. Businesses have the responsibility, the capacity and Agi Veres livelihoods. the motivation to be the driving force in achieving the Country Director, UNDP China SDGs. Those that understand this challenge and take GOAL 11 GOAL 12 GOAL 13 action will be a step ahead.
UNDP China is proud to be partnered with JD, who We hope to see more organizations using the SDGs Participate in marine Help protect land ecosystems, Strengthen supply chain Actively communicate with through aligning its business priorities with SDGs have to report on sustainability in the future, and I am very environmental protection promote paperless operation, management; zero tolerance customers, international contributed to a variety of sustainable initiatives. optimistic that by continuing to work together with JD and programs and strengthen the use electronic invoices, and for bribery and counterfeit organizations, industry Conducting this CSR report under the framework other private sector partners, we will be able to succeed supply chain management of promote the use of recycled goods; build convenient associations, NGOs, seafood. packaging. communication, appeals and communities, media and of SDGs for the first time, JD is showing how this in addressing climate challenges, eradicating poverty and relief channels to protect the the public; develop global framework provides an excellent way for organizations fighting inequality, ensuring no one is left behind. interests of consumers and partnerships through our to measure their impacts on sustainable development employees. business and charity platform. for all. Agi Veres GOAL 14 GOAL 15 GOAL 16 GOAL 17 Country Director, UNDP China
7 JD .COM 8
05 JD Foundation consistently contributes to the JD Foundation and UNDP launched the “Green education sector and has donated to more than Planet” Sustainability Week initiative to encourage 10 universities, including Tsinghua University, consumers to integrate sustainable consumption Renmin University of China, Cornell University concepts into their daily lives and choose a and China Europe International Business School. healthier and better green lifestyle. The foundation supports domestic and overseas JD FOUNDATION educational development and funds needy students to fulfill their dreams.
In April 2018, JD Foundation launched the Children’s Book Donation Program and delivered books to over 200 rural schools.
Technological innovation brings new vitality to charity. We need transparent, efficient, and trustworthy charities. Furthermore, an innovative, open, and empowered way of doing charity work is required. In the new age of charity, we JD Foundation has created a disaster relief are leveraging JD’s business advantages and core model that allows joint donation from partners, resources with many charity partners to create a individuals and JD.com. Between 2013 and 2017, platform for the furthering of public interests. JD Foundation has responded to 20 disasters and donated nearly 4,000 tons of materials to people Nancy Zhang Honorary President, JD Foundation in the affected areas.
Nancy Zhang Honorary President, JD Foundation
Since its launch in September 2014, JD Foundation JD Foundation has collected 1.5 million items has been committed to the goal of integrating social through the JD Giving Platform, and donated to resources for social good, with focuses on poverty poorer areas in 28 provinces, including Henan, alleviation, disaster relief, education, environmental Hunan, Sichuan and Guizhou. protection and social innovation.
9 JD .COM CORPORATE SOCIAL RESPONSIBILITY REPORT 10 06 Green Supply Chain Green Consumption
JD CSR STRATEGY SUSTAINABILITY
Poverty Alleviation Social Innovation EMPOWERMENT INNOVATION Openess Technological Innovation
GOVERNANCE
Compliance Privacy Protection Employee Development
11 JD .COM CORPORATE SOCIAL RESPONSIBILITY REPORT 12 The total volume of green purchases made on JD increased by 71% in 2017.
GREEN GREEN First e-commerce company to go paperless, resulting in 1,820 tons of paper saved from 07 SUPPLY CHAIN CONSUMPTION invoices by issuing 2.8 billion + electronic invoices in last five years, 5,000+ tons of paper saved from electronic signatures being used as delivery confirmation process in 2017. 5,000+ All packaging to be provided under The Forest Stewardship Council (FSC) logo within 5 years. SUSTAINABILITY New energy vehicles on the road A photovoltaic power generation system that JD built and installed on the roof of its Shanghai Asia No.1 logistics park has been operational since
June 2018, significantly reducing CO2 emissions. JD plans to team up with global partners to create the world’s largest ecosystem of rooftop photovoltaic power generation by 2030, creating a photovoltaic power generation area of more than 200 million square meters.
Over 5,000 new energy vehicles have been million billion 200+ deployed in several cities across China. Within 2.8+ 5,000+ two years, our nationwide fleet of direct-sale M² photovoltaic power generation area delivery trucks will be upgraded to new energy Electronic invoices issued in last five years Tons of paper saved to be constructed by 2030 vehicles, and we will also encourage our partners to adopt the same policy. Based on our calculation,
a 4.2-meter new energy van will reduce CO2 emissions by at least 20 tons per year compared with similarly sized fuel vehicles.
In June 2017, together with brand owners, manufacturers, logistics companies, packaging Recycling Plan companies and industry associations, JD Logistics We initiated recycling projects in launched the Green Stream Initiative, a joint green several cities in China. As a result, supply chain campaign with the goal of improving 1 million+ items of clothing and the utilization rate of supply chain resources and 400,000+ toys have been collected and reducing carbon emissions. reused or donated to people in need,
reducing CO2 emissions by 2,400 tons. A 1 billion RMB JD Logistics Green Fund was 10,000+ expired medications have 1 million+ reusable delivery bags that are safe and launched in December 2017, with the goal of been collected and safely disposed of environmentally friendly have been used since driving innovation for environmental protection by professional organizations to avoid million 2014. 250 and promoting green consumption. 2,400 environmental pollution. 100,000 recyclable Green Boxes were used to deliver “Slim” tape, saving 250 million meters of tape for
Meters of packaging tapes saved goods in 2017. packaging in last two years. Tons of CO2 emission reduced
13 JD .COM CORPORATE SOCIAL RESPONSIBILITY REPORT 14 Leveraging JD’s self-operated e-commerce network, we built JD’s online donation platform, Cliff Village gets first mobile clinic “JD Giving Platform”, which was created to provide thanks to JD drones SOCIAL charity programs with integrated support. Via the TECHNOLOGICAL platform, charity organizations can not only raise INNOVATION INNOVATION Atulieer village in Liangshan Prefecture 08 money from individual consumers but also use of Sichuan Province in China is a JD’s supply chain, distribution network, technical hard-to-reach place known as the support and customer service to guarantee the "Cliff Village." Villagers must climb donations reach their intended recipients. More 800 meters whenever they need to importantly, the platform has provided consumers leave the village for supplies. Access with a transparent and reliable donation to medical care was poor, with six to experience. eight hours needed to deliver medicine there. Now, thanks to JD-designed INNOVATION drones, deliveries can be made in only eight minutes, round trip. Villagers Nearly 2.4 million items now have better access to health and Transparent collected medical services from mobile clinics supported by JD.com.
Efficient 2.4+ First application of blockchain technology to charity donation in China Innovative In cooperation with Teach For China in September 2017, JD.com JD Giving Platform applied blockchain technology to collect, integrate, record and display information about charity donations, 100+ charity organization building more trust into the process partners for donors. The approach ensures that information about the whole donation JD Giving Platform: One-Click process is fully traceable and cannot be Direct Donation Model modified, and donors can easily follow 100+ every gift they give to children in need. Through JD’s official app, users can learn about various charity programs and purchase materials to help disaster victims at a fair low price. The materials are delivered directly to the charity program by JD's efficient logistics system. In this way, JD’s highly-efficient business network and 600+ charity programs on JD logistics system offers a convenient Giving Platform way to connect consumers with trusted charity programs, and donations can be completed with just one click. 600+
15 JD .COM CORPORATE SOCIAL RESPONSIBILITY REPORT 16 ENGAGE IN SHARE POVERTY RESOURCES ALLEVIATION AND EMPOWER 09 AND INCLUSIVE PARTNERS DEVELOPMENT
JD Logistics has helped millions of EMPOWERMENT businesses reduce supply chain Employment costs and improve circulation JD.com recruited 25,000 Open efficiency through by opening employees from the poorest Logistics up three major service systems: counties, in addition to nearly logistics and integrated supply 60,000 village promoters in chain services, JD delivery service rural areas. and JD logistics cloud service. Running Chicken Program – To help businesses benefit , 57 years old, is from Aihua Wang Story from highly targeted, accurate Wuyi County, Hengshui City, Hebei marketing tools, JD formed Province. In May 2016, JD teamed with strategic cooperations with the local government on a poverty companies including Tencent, Partnerships alleviation project, providing interest- Baidu, Toutiao, Qihoo 360, free loans to farmers from local NetEase, Sogou, iQIYI, Sohu and iFLYTEK. So far, the project has cooperatives that raised organic, free- reached nearly 100% of Chinese range chickens. Wang and 51 other Internet users. farmers participated, and six months later as Single’s Day approached, Wang and the villagers sold every one of the We provide customized chickens online through JD.com. As e-commerce solutions for partners that combine nearly 100 functions a result, the farmers increased their JD such as operations, marketing, annual income by several thousand Kepler web development, trading, yuan each. E-commerce Platform Start-ups logistics, finance, intelligence, R&D, cloud services, and data JD.com was the first JD.com has conducted services. e-commerce company to set more than 630 e-commerce up a special platform to sell training sessions, benefiting products from rural areas of more than 100,000 people China. More than 3 million from 28 provinces and Leveraging JD's shared resources products in 136 categories districts across China. 103 of e-commerce, finance, sourced from rural areas are e-commerce incubators for logistics and insurance, JD Cloud available online and have young entrepreneurs were empowers organizations through Cloud achieved sales volume of 20 established. technology to achieve deep Service billion RMB, benefiting more integration between traditional than 300,000 people from 832 offline and newer online of China’s poorest counties. economies. JD.com has launched 188 local specialty malls on its platform, benefiting 90% of the poorest counties in China.
17 JD .COM CORPORATE SOCIAL RESPONSIBILITY REPORT 18 STAFF PRIVACY 10 DEVELOPMENT PROTECTION Comprehensive and Through the JD User Privacy Through data security technical reasonable measures to avoid Policy, we clearly inform users and management measures, collecting unrelated personal of the purpose and scope of the personal information is information. use of relevant information. safeguarded from being leaked, damaged, or lost. INTERNAL SOCIAL AND GOVERNANCE PROGRAMS 30 100 Million RMB Million RMB Establish a 30 million RMB Spend 100 million+ RMB each special fund to help employees year to help front-line employees suffering major illness or facing reunite with their families during disasters. the Spring Festival. COMPLIANCE
Set up Internal Control and Set up 10 million RMB annual anti- Use of smart technology and Compliance Department corruption fund. manual inspections to identify For employees’ children and developed a system of and combat fraudulent 450 1,000 internal controls and process transactions, imposition of Million RMB Build an international bilingual Employees specifications for each business severe punishment on illegal Set up an 450 million RMB kindergarten, childcare centers More than 1,000 employees system. merchants. special fund for providing and playgrounds for employees’ have earned undergraduate or employees with housing loans. children. graduate degrees from the “Go to College with JD” program launched in November 2013.
Require overseas warehouse In the selection of international All suppliers sign an Anti-Bribery service providers to implement service providers, priority Agreement before cooperating. % 80 1,620,167 standardized operating is given to the reputable Non-compliant merchants lose Participants procedures and safety standards international supply chain the opportunity to cooperate Sponsored selected senior 80% of mid-level management and 1,620,167 participants completed throughout the production service providers in the industry. with JD.com forever. and mid-level managers to 70% of senior-level management 19,215 online and offline training process, use of electric forklift participate in part-time EMBA have been promoted internally. sessions between Jan 2016 and Nov trucks, and localization of raw programs. 2017. material purchases.
19 JD .COM CORPORATE SOCIAL RESPONSIBILITY REPORT 20 11 Report Content GRI Index
REPORT MESSAGE FROM THE CEO 102-14, 102-15, 102-16; 103-1,103-2 DISCLOSURE ABOUT JD 102-1, 102-2, 102-4, 102-6, 102-7, 102-9, 102-10, 102-16 INDEXES ABOUT THIS REPORT JD.COM PARTNERS WITH THE UNITED NATIONS 103-1, 103-2 JD FOUNDATION 103-1, 103-2
JD CSR STRATEGY 103-1, 103-2
SUSTAINABILITY 301-3, 302-4, 302-5, 305-5, 401-2, 417-1
INNOVATION 103-1, 103-2, 203-1, 203-2
EMPOWERMENT 102-10, 103-1, 103-2, 203-1, 203-2
GOVERNANCE 102-8, 102-17, 102-35, 103-1, 103-2, 205-2, 404-2 DATA AND REPORTING ABOUT THIS REPORT 102-50 INFORMATION STANDARD DISCLOSURE CONTACT US 102-53
REPORT DISCLOSURE INDEXES 102-55
This report is written to meet generally accepted The data and content disclosed in this report cover CSR disclosure standards, and is based on the the period from June 2013 to June 2018. Data and CONTACT US To obtain a full version of the Corporate Social industry background, highlighting corporate information collection is mainly through the company's Responsibility Report in Chinese or for more characteristics. The standards referenced in this internal data collection systems and statistical reports, as information, please visit our official website report include: Global Reporting Initiative (GRI), well as qualitative and quantitative information collection (corporate.jd.com) or send an e-mail to csr@ Sustainable Development Reporting Standards questionnaires based on the reporting framework. jd.com. (GRI Standards); United Nations, 2030 Agenda for Sustainable Development.
21 JD .COM CORPORATE SOCIAL RESPONSIBILITY REPORT 22