Environmental, Social,and Governance Report

2022

1

5

Restoring Our Green Planet

Climate commitments and status

029-032

01 Greening our operations and value chain 033-046

Contents
Report Instructions

003

Company Introduction

004

Chairman's Letter005-008

Executive Summary

011-026

02 Amplifying decarbonization throughour platform ecosystem047-054

03 Conserving and restoring nature

055-060

2

01 Rural revitalization throughdigital development143-162

02 Digitalization for community resilience

163-1706

Supporting Our People

Enhancing Community Inclusion
and Resilience

Facilitating Participatory Philanthropy

01 An equal, digniﬁed, inclusive, anddiverse work environment

063-068

01 Philanthropic participation of
all employees

173-176

02 Fair and competitive compensationand "beneﬁts with warmth"069-074

02 Technological innovations forsocial challenges

177-17803 Abundant learning andcareer opportunities

075-078

03 Empowering charities with technology

179-180

04 Employee health and vitality

079-086

04 Philanthropy for everyone throughour platforms

181-184

3

Enabling a Sustainable Digital Life

7

Building Trust

01 Diverse consumption

089-094

01 Building corporate trust

187-192

02 Inclusive consumption

095-098

02 Building social trust

193-198

03 Trustworthy consumption

099-104

04 Responsible consumption

105-108

Appendices199-218

4

Fueling Small Businesses

01 Developing responsible technologies

111-114

02 Building digital business capabilities
and markets for MSMEs

115-128

03 Enabling inclusive employment129-136

04 Promoting responsible production

137-1402022

003 / 004

Environmental, Social, and Governance Report

Report Instructions:
In this report, “Alibaba,” “we,” “the Group,” and “the company” all refer to “Alibaba Group Holding
Limited.”This report mainly covers the environmental, social, and governance (hereinafter referred to as "ESG")

Our mission:
To make it easy to do business
anywhere.

progress of the business directly operated and controlled by the Group from April 1, 2021, to March 31,
2022. Some parts of the report also cover prior years as well as give forward-looking statements.
Unless speciﬁed, the monetary amounts shown in this report are all presented in RMB.
The report is prepared in accordance with the ESG Reporting Guide from the Hong Kong Stock Exchange.
It also refers to selected guidelines from the United Nations 2030 Sustainable Development Goals (SDGs),
the Global Reporting Initiative (GRI) Standards, the standards issued by the Sustainability AccountingStandards Board (SASB), and the framework suggested by the Task Force on Climate-related Financial
Disclosures (TCFD).
Additional disclosures can be found in our appendices.

Our vision:
We aspire to be a good company
that will last for 102 years.
Company Introduction

Appendix 1: ESG Key Performance Metrics Table
Appendix 2: ESG Environmental Data Veriﬁcation Statement
Appendix 3: Greenhouse Gas Inventory
Appendix 4: Stakeholder Engagement and Materiality Assessment
Appendix 5: Progress of United Nations Global Compact
Appendix 6: Report Indicator Index
Appendix 7: Important Legal Information
This report is presented in electronic versions in the ESG section of the Group’s oﬃcial website (https://alibabagroup.com/en/ir/esg). A Chinese version, an English version, and printer-friendly versions areavailable. In case of conﬂicts between the two languages, the Chinese version shall take precedence.

Our mission: to make it easy to do business anywhere. Our founders started our company to champion
small businesses, in the belief that the Internet would level the playing ﬁeld by enabling small enterprises
to leverage innovation and technology to grow and compete more eﬀectively in domestic and global
economies. We believe that concentrating on customer needs and solving their problems – whether thosecustomers are consumers, merchants, or enterprises – ultimately will lead to the best outcome for ourbusiness. In the digital era, we are staying true to our mission by helping our customers and business
partners harness the power of digital technology. We have developed an ecosystem powered bytechnology infrastructure that enables participants to create and share value on our platforms. Ourdecisions are guided by how they serve our mission over the long term, not by the pursuit of short-term
gains.

We value any feedback and opinions, which can be e-mailed to us at ESG@alibaba-inc.com.
Our vision: we aspire to be a good company that will last for 102 years. For a company that was
founded in 1999, lasting for 102 years means we will have spanned three centuries. Our culture, businessmodels, and systems are built to last, so that we can achieve sustainability in the long run. As we continue
to expand our businesses, Alibaba has evolved into an ecosystem that is unique, energetic, and innovative.

Environmental, Social, and Governance Report

Letter from the Chairman and CEO

005 / 006

Executive
Summary

Alibaba and Our Vision to Last 102 Years:
Creating Value Beyond Commercial Outcomes
Letter from the Chairman and CEO

The extreme weather this summer is fueling global
anxiety that the impact of climate change is not far
removed in the future. Historical data shows thatthe previous. Yet extreme weather is but one example
of a world facing increasing uncertainty. The COVID
pandemic is now in its third year, while geopoliticalconﬂicts continue to intensify alongside emerging
the United Nations 2030 Sustainable Development
Goals (SDGs), such as eradicating poverty, reducing

Carbon), common prosperity, rural revitalization, and educational equity, which are highly consistent with theaction items advocated by the SDGs and oﬀer guidance for exploring value creation beyond commercial
outcomes. We believe ESG designs and practices in China will evolve to incorporate unique local characteristics.

Our Action Plan
We believe in our responsibility and capability to be a driver of positive change more than ever. As a digitalplatform company, Alibaba's growth story is a history of innovation in the business applications of technology
and the creation of new business formats with the many participants in our ecosystem. Today our digitalplatforms have brought together more than 1.3 billion consumers and tens of millions of merchants and otherorganizations. Not only are they business and innovation partners but also our companions on the journey of
ESG exploration and practices. How to work with them to build a green and sustainable new businessecosystem and create value beyond commercial outcomes is a new expedition for all of us.

warrant optimism.

Of course, solving all these challenges and building a new business ecosystem is not something that can be

Alibaba's vision is to be a good company that will last

done overnight, nor can any organization do it independently. It requires the trust and collaboration of all

for 102 years. We were founded in 1999, and 102
years would give us a foothold across three centuries.
This will require resilience to overcome major
economic cycles and unexpected challenges. Our
our communities and to creating value beyond only commercial outcomes. For us to last for 102 years in a healthyand sustainable fashion, we must manage our impact on the environment, our relationship with society at large, andour long-term corporate governance.
The design of our ESG strategy is critical to the realization of this vision. ESG not only oﬀers businesses an action
evaluating a good company. Last year, we formally announced that ESG would become a core pillar of Alibaba’s
strategies.
Alibaba has been in existence for 23 years, and we believe ESG is a good yardstick for measuring value, responsibility,

seven strategies of action:
Restoring our green planet: Addressing major environmental issues such as climate change.
Supporting our people: Building a people-ﬁrst culture that oﬀers an equal, inclusive, and digniﬁed environment in which
every employee can grow and develop.
Enabling a sustainable digital life: Leveraging the power of technology to bring a better and more responsible digital
lifestyle for everyone.
Fueling small businesses: Creating more growth opportunities for micro, small, and medium enterprises (MSMEs) andentrepreneurs through technology and business innovations.
Enhancing community inclusion and resilience: Sharing dividends of development with disadvantaged groups andunderserved regions, and thus building more inclusive and resilient communities.
Facilitating participatory philanthropy: Fostering a culture of participatory philanthropy by integrating community
resources with creative platform innovations.

high-quality and transparent metrics for continuous self-evaluation and improvement. We will share our progress

Building corporate and social trust: Building corporate trust by establishing an eﬀective, transparent, and soundthrough two reports: our Annual Report on the health of our business, and the ESG report on our progress insustainability and the associated value we create.

governance system; building social trust with ethical technology and protecting user privacy and data security.

Trustand risk in the 79 years ahead and beyond. It helps us develop a practical, clear, and persistent action plan with

Philanthropy

framework to address universal risks and challenges but is also increasingly important as a global standard forinnovative sustainable solutions. Based on our capabilities and priorities, our ESG plan focuses on the following

Community

original vision is a testament to this long-term thinking, and shows our commitment to addressing issues faced bystakeholders, including policymakers, businesses, and the general public - all working together to discover

Small
Businesses

inequality, and mitigating climate change, does not

Consumers

energy and food crises. The progress to date towards

practices. In recent years, China has announced several policies, such as carbon peaking and neutrality (Dual

Employees

each decade since the 1960s has been hotter than

We believe the eﬀective implementation of ESG strategies should align with both global standards and China's

Environment

ESG not only provides a framework for tackling a series of global challenges,
but is also the bridge to carry Alibaba to 102 years and beyond.

Chairman's
Letter2022

Environmental, Social, and Governance Report

Letter from the Chairman and CEO

007 / 008

Chairman's
Letter2022

with compliance, transparency, and accountability. At the beginning of this month, we announced two

action plan, which has been my top priority. To guide our strategy and execution, we are building a three-tier

new independent directors, bringing the total number of independent directors on our board to seven

governance structure consisting of the sustainability committee at the board level, the sustainability steeringout of twelve, or more than 50 percent, and the number of female board members to three. We willcommittee (SSC) for management oversight, and the ESG working group.

continue to enhance the independence and excellence of our board.

Environment

Over the past year, I have spent a lot of time working closely with our teams on Alibaba's ESG strategies andWe are proud that every bit of our progress in ESG has been inextricably connected with the economic andsocial growth of people's daily lives. We are actively exploring how to use technology to better serve our ESG
objectives, how to better integrate ESG into our business design, and how to promote public welfare more
eﬀectively and sustainably in various social topics, such as ﬁghting pandemics and natural disasters orpreservation. Our eﬀorts in addressing these topics help us develop a deeper understanding of ourConclusion
Despite the many challenges ahead, we are hopeful. The world is full of uncertainties and we are at a

relationship with our times and the society we are in.

critical juncture for a new phase in sustainable development. Under these circumstances, ESG is not

In December 2021, we released our Carbon Neutrality Action Report and made some important commitments.

annually to share periodic updates on our goals, actions, and progress. We believe digitalization can

These commitments will continue to impact generations of Alibaba employees, or "Aliren." We know that
our organization. We have pioneered methodologies for measuring "Scope 3+" emissions reduction withleading institutions and started industry collaborations with consumer companies on decarbonization-friendly
actions. We have also recently rolled out a carbon ledger platform to make it easier for users across Alibaba’s

not only bring connectivity and synergy, but also uniquely drive green transformation and sustainable
development.
We hope the implementation of our ESG strategy will make Alibaba a better company. We also hope towork together with everyone towards a better, fairer, and more sustainable future!

Consumerschange will only come with ongoing eﬀorts across generations. By now, carbon reduction is a priority acrossjust the right choice but also an opportunity to shape the future. We will publish this ESG report

Employees

supporting longer-term endeavors including common prosperity, rural development, and Chinese cultural

Executive
Summary

Our Progress in Action

ecosystem to participate in eco-friendly actions. As a general principle, we strive to make low-carbon eﬀorts
environmental commitments into future planning, including on water, natural resources, and biodiversity.
We also believe that the boundaries of social responsibility should be broader. To begin with, we arecommitted to creating an equal, inclusive, and digniﬁed working environment for our employees, providingthem with growth opportunities as well as fair and reasonable compensation and beneﬁts. We are leveraging

Daniel Zhang
Chairman and Chief Executive Oﬃcer
Alibaba GroupWe are contributing to building a digital rural economy and improving community resilience to combat
pandemics and natural disasters. We are promoting a culture of participatory philanthropy, which means

August 2022

Community

technology to support the high-quality development of small businesses and the creation of inclusive andﬂexible employment opportunities at scale while enabling more consumers to access a sustainable lifestyle.

Small
Businesses

go hand-in-hand with long-term development. Meanwhile, we have started to incorporate broader

charitable actions and social impact eﬀorts can be inﬂuential in addressing sustainable development

We are also continuing to pursue corporate governance excellence and earn the long-term trust of consumers,
customers, and other stakeholders. We are leveraging industry-leading technologies and capabilities to help
build a trust system for digital business, including secure protection of user privacy and data security. We arePhilanthropy

challenges beyond business goals.

building a digitalized and comprehensive risk management system and an eﬀective governance mechanism
TrustESG is the bridge
to carry Alibaba
to 102 years

Environmental, Social, and Governance Report

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Executive Summary

ESG at Alibaba's core
For Alibaba, ESG is the bridge to carry us into a long-term and sustainable future. We are, after all, acompany born with social responsibility in our DNA. That begins with our mission to "make it easy to dobusiness anywhere." Our platforms have helped over ten million small businesses to thrive and over achallenges being environmental degradation and socioeconomic inequality. These risks are urgent and ofbillion consumers to enjoy better lives. To continue to make such contributions, Alibaba must do all ita magnitude that puts them beyond the capacity of any singular institution or even country to address.

can to mitigate key societal challenges, for the long-term sustainability of ourselves, our partners, andUnderstanding the scale and complexity of these challenges, the global community is coming together

our communities at large.

and engaging in concerted eﬀorts. These initiatives include the United Nations (UN) 17 Sustainable

On our 20th anniversary in 2019, we led discussions to propose China's ﬁrst Sustainable Business Action

Development Goals (SDGs), some of China's key development policy initiatives (carbon neutrality, common

Initiative, recommending that our business partners and industry peers, together with us, should:

prosperity, and rural revitalization), and the budding corporate ESG movement.

mitigate these challenges. Digitalization has brought unprecedented connectivity and collaboration,
extending the beneﬁts of global trade and economic development to an increasing number of regions
across the world. We must bring to bear the full force of digital innovation, while also ensuring that every

Integrate sustainable development into core business development strategies and establish thenecessary governance structures;
Practice sustainable development in business activities and be transparent in ESG disclosure;Strengthen cooperation with all stakeholders to jointly promote sustainable development;

In our view, there are three pillars - prioritizing social responsibility, leveraging the strength of technology,

Commit to delivering on long-term sustainable development objectives to ensure a better future forand engaging the stakeholder ecosystem - that serve as indispensable building blocks for systematic,scalable, and collaborative solutions to sustainability challenges. Businesses touch upon all three pillars
and should help gather these forces to identify solutions that align with the public interest. Digitalbusiness and beyond, that are technology-powered and socially responsible.

By December 2021, we had codiﬁed our recommendations into a robust system, declaring ESG as oneof Alibaba's top priorities in our business strategies and future growth. On that basis, we arechampioning responsible technology, and committing to the inseparable link between our own future
and a sustainable future for all.

Community

SocialResponsibility
SocialStakeholder
Ecosystem

Strength ofTechnology

ESG

Philanthropy

Environmental

Small
Businesses

platforms are especially well positioned to link the three building blocks to create ecosystems, both forbusinesses, communities, countries, and the planet.

Consumers

person and community that we serve can fully enjoy its beneﬁts.

Employees

As a technology-driven platform company in this era, Alibaba should shoulder the responsibility to help

Environment

The world collectively faces a host of issues that threaten our society's future, with the most pressing twin

Executive
Summary

Global challenges and theroles of technology and business

Chairman's
Letter2022

Governance
TrustEnvironmental, Social, and Governance Report

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Executive Summary

Executive
Summary

Our approach:ﬁve strategic design steps

Chairman's
Letter2022

Charity for sustainability

Environment

In designing our ESG strategy based on the three pillars - social responsibility, technological strength, andmultiple stakeholder engagement - we have developed a systematic ﬁve-step approach to position,
integrate, coordinate, amplify, and complement our ESG goals.

Positioning and targeting: Through extensive communication with relevant stakeholders such aspressing societal challenges and Alibaba’s own characteristics and capabilities, we have identiﬁed theissues of greatest priority. We have further clariﬁed our strategic positioning with ESG as central to our

Positioning and targetingcore strategy, and we are committed to being a technology company that promotes human well-being

Employees

consumers, employees, investors, governments, partners, and communities, and considering the mostand protects the planet, so that people and nature can develop in a sustainable way.
Consumers

Integrating ESG into business design: Only by establishing social responsibility as a core element ofbusiness design, combined with technological and business innovations, can sustainability truly become
the engine of enterprise development. This means that ESG goals must be integrated into strategicplanning, business positioning, and operations.
Promoting coordinated transformation of the related business ecosystem: With social responsibility
as our strategic goal, we should innovate and reform our system from the inside out and across thevalue chain, together with suppliers, NGOs, and ecosystem partners.
Amplifying impact through platform technology: Platform technology companies can widely reachcan become a facilitator in helping all parties to fulﬁll their social responsibilities, and truly promote

Amplifying impact throughplatform technology

Integrating ESG intobusiness designsocial progress on a large scale.

Communityand connect multiple participants, promoting collaboration between them. This means that the platform

Small
Businesses

ESG
strategy
designCharity for sustainability: We coordinate our philanthropic eﬀorts and ESG priorities to complement andPhilanthropy

go beyond the business and address broader environmental and social challenges.

Promoting coordinated transformationof the related business ecosystem
TrustEnvironmental, Social, and Governance Report

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Executive Summary

Addressing major environmental issues such as
climate change.

By conducting materiality assessments in extensive exchanges with stakeholder groups, we have

Executive
Summary

Alibaba's ESG strategy design:
a seven-petal ﬂower

Chairman's
Letter2022

identiﬁed 22 ESG material issues at Alibaba (for details, see Appendix 4), which we organize into
Environment

seven action dimensions of our long-term ESG plan. This is represented in our "Alibaba
seven-petal ESG ﬂower." The seven strategy goals are closely aligned with the UN’s 17 SDGs
and China’s key development policy initiatives.

Restoring Our
Green Planet
Building Trust

Fostering a culture of participatory philanthropy byintegrating community resources with creative
platform innovations.

Facilitating
Participatory
Philanthropy

Sharing dividends of development with disadvantaged
groups and underserved regions, and thus building
more inclusive and resilient communities.

Fueling Small
Businesses

Trust

The essence of ESG is to pursue the sustainable development of both human beings and the natural world. This goal is touched on by all the petals: Alibaba needs tobuild trust with all our stakeholders, with a particular aim of supporting our people internally. With our ecosystem stakeholders working in concert, we can take the steps
necessary to restore our green planet while simultaneously providing consumers with a better, sustainable digital life and providing a platform for the development ofsmall businesses. All of these go hand in hand with eﬀorts we must make to enhance the economic inclusion and resilience of communities and simultaneously facilitate
everyone's participation in tackling our social challenges.

Philanthropy

Creating more growth opportunities for
micro, small, and medium enterprises(MSMEs) and entrepreneurs throughtechnology and business innovations.

Community

EnhancingCommunity
Inclusion andResilience

Small
Businesses

Enabling a
Sustainable
Digital life

Leveraging the power oftechnology to bring a betterand more responsible
digital lifestyle for everyone.

Consumers

Supporting
Our People

Employees

Building corporate trust by establishing an eﬀective,
transparent, and sound governance system;
building social trust with ethical technology, andprotecting user privacy and data security.

Building a people-ﬁrst culture thatoﬀers an equal, inclusive, anddigniﬁed environment in which every
employee can grow and develop.

Environmental, Social, and Governance Report

Executive Summary

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Executive
Summary

A summary of our actions inthe seven strategy dimensions

Chairman's
Letter2022

I. Restoring Our Green Planet
To help mitigate climate change, the central issue of the present environmental crisis, we have made ambitious

Environment

carbon pledges that cover our operations (Scopes 1 and 2), our value chain (Scope 3), and our platform
ecosystem (Scope 3+). We have been proactive in pioneering the concept of "Scope 3+" to reﬂect a platform
operator's potential and responsibility to go above and beyond its own carbon emissions. In the long run, we arecommitted to the Science-Based Target initiative (SBTi) that seeks to limit the average global temperature increase to
1.5 degrees Celsius by 2050.

Employees

We are fully committed to our pledges and will work relentlessly to speed up our carbon transition in the following
directions.
Reducing operational and value chain carbon
emissions (Scopes 1, 2, and 3)

Tackling broader environmental
problems
Beyond carbon emissions, we have alsowith greener materials and clean energy, digital optimization,

developed programs and targets for tackling

II. Supporting Our People

and recycling. We apply these procedures to our mostother environmental challenges, such as

Alibaba is a global technology company with diverse and talented employees working in oﬃces acrosscarbon-relevant operations, including our work environments,

preserving biodiversity, reducing waste, and27 countries and regions. None of our goals can be achieved without them. We strive to be a company

retail stores, cloud computing, and logistics. We actively work

conserving water.

that people love to work for, and where they can become better versions of themselves.

with our value chain partners, expanding our sustainable
Alibaba Supplier ESG Code of Conduct, we encourage our
suppliers to establish their own emission reduction plans. We've
pioneered more environmentally conscious product categories,
such as China’s ﬁrst large-scale batch of certiﬁed low-carbon

Partnering for platform decarbonization (Scope 3+)
With professional institutions, we jointly published Scope 3+
Emissions Reduction: A New Methodology for Corporate
developed a digital carbon reduction measurement system,
and launched our carbon ledger platform covering multiple
apps, already helping over 20 million users practice carbon
reduction. We also launched the "Decarbonization-friendly
Action" program in concert with many leading brands.

We value having a diverse set of people, talents, roles, views, and cultures at Alibaba. We have always
had a deep reservoir of female leadership. Women comprise 39% of leaders in our senior management
team, and our workforce is evenly split by gender. We eschew hierarchy to promote candid and open
communication at all levels, including regular employee chats with our Chairman and CEO, Daniel Zhang.
Provide fair and competitive compensation, and "beneﬁts with warmth"
We retain and advance motivated and talented people with competitive compensation, includingsalary, bonus, and equity incentive awards. Our beneﬁts package goes above and beyond the average
and extends to the families of employees.
Provide rich learning and working opportunities that lead to personal growth
We run a large internal training and development program. In FY2022, the average training time per
employee reached 49 hours. We also actively promote internal job mobility, with 7,707 positions ﬁlled
internally in FY2022, making Alibaba itself a dynamic talent market.

Philanthropy

Climate Actions Beyond Value Chains. Under its guidance, we

Build an equal, digniﬁed, inclusive, and diverse workplace

Communityorganic agricultural products.

To accomplish this, we commit to four actions:

Small
Businesses

procurement program to reduce Scope 3 emissions. In theConsumers

We strive to reach operational carbon neutrality via substitution

Promote people's health and vitality
our employees' safety seriously, with a multi-layered safety and response system.

Trust

We put signiﬁcant eﬀort into crafting vibrant, healthy workplaces with a happy work culture. We takeEnvironmental, Social, and Governance Report

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Executive Summary

Chairman's
Letter2022

Executive
Summary
Environment
Employees

IV. Fueling Small Businesses

We are committed to helping consumers achieve better lives in increasingly responsible and sustainable ways.

Unlike other recent industrial revolutions, this is an era in which small players can be competitive. We

We promote sustainable consumption with the following four characteristics:

hope that the stakeholder ecosystem we have built with our partners can support the sustained growth

Consumers

III. Enabling a Sustainable Digital Lifeof small businesses. For that we act in four directions:

A better life requires diverse products and services.
We run the world's largest consumer market withbillions of SKUs on oﬀer, allowing consumers toaccess a diverse array of products with diﬀerent
Our platforms provide transparent price comparison
tools that help consumers ﬁnd the best value for
their money.

in China last year came from relatively
less-developed regions. We make eﬀorts to ensure
digital tools are accessible to traditionally
underserved groups, such as senior citizens andvisually-impaired users were active on Taobao.

billion in technology-related areas. We believe

million MSMEs on our e-commerce platforms,

responsible technology should be eﬃcient, green,

and an estimated 60 million jobs. We have also

advanced, inclusive, and open. For many years wemade use of the leveling power of technology tohave been consecutively ranked ﬁrst among Chinesecreate jobs for women and historicallyﬁrms in open source activity.

disadvantaged groups such as people withdisabilities.

Responsible consumption
We foster responsible consumption on our platforms
by banning dangerous and harmful products,
promoting a green marketplace of sustainable goods,
and encouraging sustainable consumption habits. By
the end of FY2022, the Cainiao box recycling program
now operates in 315 cities in China.

One crucial feature of our platform is that it builds
a dynamic business ecosystem involving tens of
millions of consumers and MSMEs. We develop
technology-driven market access and business
infrastructure allowing MSMEs to be more competitive
while retaining their ﬂexibility and vitality.

Promoting responsible production
We provide our customers and ecosystem partners
with state-of-the-art digital technologies andsolutions that make their work more eﬃcient, lessenergy-intensive, and with less waste of resources.

Trust

people with disabilities. In FY2022, 305,000

We have created opportunities for over ten

Philanthropy

We continually extend our services to remote andEnabling inclusive employment

In FY2022, we invested a record of over RMB120

Building digital business capabilities
and markets for MSMEs

Inclusive consumption
less aﬄuent regions: more than 70% of new users

Building responsible technologies

Community

functions, brands, price levels, and delivery speeds.

Trustworthy consumption
We are dedicated to high standards for the
genuineness, safety, and quality of goods and services
on our platform. We are also making consumer privacy
protection a top priority. We communicate to our users
the scope of data collection with transparency, require
user authorization to do so, and facilitate opting out of
data-based recommendations at any time. By Aug 15,
2022, our virtual phone number feature had covered
over 500 million active consumers on Taobao.

Small
Businesses

Diverse consumption

Environmental, Social, and Governance Report

Executive Summary

021 / 022

VI. Facilitating Participatory Philanthropy

The urban-rural socioeconomic divide is the largest inequality challenge in China, a situation paralleledaround the world. At the same time, economic development is not sustainable if society, especiallydisadvantaged groups within it, sees disasters and crises wiping out their hard-earned progress. We strive toenhance the inclusion and resilience of communities by tackling the following two intertwined problems:

Our approach to philanthropy is centered on the notion that public service should be widely participatory.
We apply this principle in four key ways.

We draw upon our expertise in technology to directly tackle social issues: Our engineers andother employees gave their time to build and run the "Reunion System" to help locate missing children.
Over the past 6 years, the system has sent alerts for 5,038 missing children and assisted in the recoveryof 4,960 of them. In the latest program year alone, we assisted in the recovery of 253 children.
We deploy our resources to be a force multiplier and a tool to help those already doing good
We launched Green Code, a volunteer tech service platform connecting over 330 organizations and 6,000
programmers. Our "XIN 100" philanthropic support program aims to provide 100 projects with resources
and skills to enhance their work.

Becoming a company that earns long-term corporate and social trust from all its stakeholders isimperative if we are to fulﬁll our social responsibility.

Trust

To earn social trust, we created a Science and Technology Ethics Governance Committee this year toensure our technologies will always be developed and used for ethical purposes. We strive to be aleader in user data privacy and security protection, which are foundational to our services. In 2015
Alibaba Cloud launched China's ﬁrst Data Protection Initiative to protect our business customers withthree principles: "you own your data; you manage your data; your data is protected." The six pillars of
Alibaba Cloud's security protection, including anti-DDoS, web application ﬁrewall, cloud security center,cloud ﬁrewall, business risk control, and conﬁdential computing, have all received recognition fromleading global authorities.

Philanthropy

We build our own resilience capabilities to support the operation of the business ecosystem and better respondto society's needs during crises. Since the outbreak of the pandemic, we have leveraged our digital capabilities,
including in operations, market access, and logistics to support society. These eﬀorts include the procurementand donation of medical supplies and necessities, and the use of our technological capacity to tackle COVID-19.
We share technologies to improve disaster forecasts, coordination, and recovery, seeking to promote broader
societal resilience. DAMO Academy’s Medical AI Team received the award "National Exemplary Organization for
Pandemic Response in Science and Technology" from China's Ministry of Science and Technology. Meanwhile,
our logistics arm Cainiao worked with partners to distribute over 260 million pieces of medical supplies to over
150 countries, including cold-chain deliveries of life-saving vaccines to 11 developing countries. Cainiao wasawarded the Silver Stevie Award for "Most Valuable Enterprise Response" for global COVID-19 eﬀorts.

Community

Support the strengthening of community resilience

To earn corporate trust, we have established a transparent and robust system of governance acrossall levels of the organization. Alibaba beneﬁts from having a dynamic and diverse board of directors aswell as a unique partnership system that looks out for the company's mission, vision, and values. In
2021, we set up a three-tier sustainability governance structure to support our ESG actions. We maintainrigorous risk management systems that give us multiple lines of defense to spot and rectify risks. We
maintain high standards of business conduct for all of our managers, employees, and partners.

Small
Businesses

VII. Building Trust

Consumers

We leverage our platforms to involve everyone in philanthropy: In FY2022, "Goods for Good"
engaged over 2.2 million merchants and 500 million consumers in channeling shopping proceeds tocharitable projects in line with our social purpose. In recent years, we rolled out "Three Hours for a Better
World" to the public, logging over 600 million volunteer sessions.

Employees

First, we continue to spur economic development by building the e-commerce market into rural areas. In 2019,
Alibaba was the ﬁrst technology company to receive the National Poverty Alleviation Organization Innovation
Award in China. In 2021, we helped sell RMB128.1 billion of products from 832 counties previously categorized
as impoverished under China’s national standards, and Alibaba was awarded as a National Exemplary Organization in Poverty Alleviation. Second, we help revitalize rural value chains by bringing much-needed business
infrastructure, production technologies, and even marketing and branding skills to rural areas. Third, we
dispatch experienced employees as "rural commissioners" and "rural technology oﬃcers" to help craft local
development solutions. At the same time, we run programs that promote digital education, cultivate ruraltalent, help to create local jobs, and improve schools and medical facilities.

Environment

Facilitate rural digitalization for a more inclusive economy

We start with our employees in promoting participatory and multi-layered philanthropy
Our "Three Hours for a Better World" asks all employees to give at least three hours to a cause annually.
In 2022, DAMO Academy created a digital sign-language interpreter to help the hearing-impaired betternavigate the world. We support a unique employee-led and elected Alibaba Philanthropy Committee.

Executive
Summary

V. Enhancing Community Inclusion and Resilience

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Executive Summary

Executive
Summary

ESG Performance Summary
Supporting Our People

Enabling a Sustainable Digital Life

Clean energy

Equality, diversity, and inclusion

DiverseWe were the largest buyer of renewable energy among Chinesecompanies in the BloombergNEF 2021 ranking.

49.5%

Women make up 49.5% of our over 250,000 employees, and 39% of
our board directors and senior executives.

619,944 MtCO2e

We achieved 619,944 metric tons of CO2 equivalent (MtCO2e)in emission reductions through energy transition in FY2022.

2,007

In FY2022, we employed 2,007 people with physical disabilities.

Alibaba Cloud saw its proportion of electricity from clean energy
reach 21.6% in FY2022.

Resource eﬃciency

1.247

Our data centers reached an annual average power usageeﬀectiveness (PUE) of 1.247 in FY2022, an Asia-leading standard.

85.5%

Alibaba Cloud can help avoid 85.5% of carbon emissions forcustomers switching from on-premise equivalents in China.

Inclusive
Learning and career opportunities
Learning and training

59,476 / 49
6,496

By the end of FY2022, Cainiao has implemented shipping box
recycling programs in 315 cities in China.

Platform decarbonization

20mn+

We launched a carbon ledger platform that has helped morethan 20 million consumers conduct carbon reduction.

19

In July 2022, we partnered with 19 consumer goods brands tolaunch the "Decarbonization-friendly Action" program,promoting low-carbon consumption.

In FY2022, Taobao served around 305,000
visually-impaired users.

Trustworthy

900mn

We pioneered a "7-day no questions asked"
return policy and speedy refunds in China. In
FY2022, over 900 million speedy refunds were
processed.

0.015%In FY2022, the complaint rate on Taobao
and Tmall was 0.015%, with 100% ofcomplaints responded to.

5mn+

We uphold three principles to safeguard user
privacy and security – minimal data collection,
maximum user awareness and choice, andthe strongest user data protection in our
products and services. By August 15, 2022, our
virtual phone number feature had covered
over 500 million consumers on Taobao.

Diverse opportunities

7,077

In FY2022, 7,077 employees initiated and completed internal job
transfers, making Alibaba a dynamic talent market.

Beneﬁts with warmth

28,000With our new "WeCare" beneﬁts program, over 28,000 employees havetaken companionship leave to care for family in the ﬁrst quarter of 2022.

65,000Over 65,000 parents of our employees used our free annual medical
check-up program, which was recognized as a "Platform EnterpriseWorker Care" best practice.

30,390On the 2021 AliDay, 30,390 family members and friends of employees
visited our campuses to experience the working environment andculture.

Best employer

Top 10We were among the Top 10 Chinese companies in Forbes World's Best
Employers 2021 ranking.

Responsible

300mn+

We established a re-commerce platform withover 300 million users, Idle Fish, supporting
the development of a circular economy.

Trust

We pioneered the concept of Scope 3+ emissions with anambitious decarbonization target, and jointly released
corresponding measurement methodologies with leading
professional organizations.

305,000

Philanthropy

Scope 3+In FY2022, over 70% of our new users in China
came from relatively less developed regions.

Community

315 Cities

We set up both professional and management tracks to give
employees better long-term development. In FY2022, 6,496
employees reached their "ﬁve-year maturity" career milestones.

70%+

Small
Businesses

Cainiao applies smart algorithms to help reduce packing box
material by 15%. In FY2022 Cainiao worked with partners toreach over 700 million shipments in original packaging.

In FY2022, we carried out 59,476 training sessions averaging 49
hours of training per employee.

Career development

Green logistics: from deliveries to recycling

15% / 700mn

We run the world's largest consumption marketplace, providing
billions of SKUs on oﬀer to meet the diverse needs of our customers.

Consumers

Computing eﬃciency: from ourselves to users

Billions of SKUs

Employees

No. 1

Environment

Restoring Our Green Planet

21.6%

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Executive Summary

Enhancing Community Inclusion andResilience

Facilitating Participatory
Philanthropy

Building Trust

Responsible technology

Rural revitalization

Everyone’s philanthropy

Corporate trustEﬃciency

Openness

No. 1

Advanced

13,000We have more than 13,000 global patents, most of which are in
the core technology ﬁelds of cloud computing, artiﬁcial
intelligence, and so on.

Inclusion

computing.

Building digital business capabilities and markets
for MSMEs
Through building a business ecosystem involving tens of millions of merchants
and more than 1.3 billion users, we bring unprecedented market opportunities to
MSMEs.

9mn / 9mn

By FY2022, Cainiao has established a vast rural logistics network
in China, with over 1,000 county-level logistics centers and
50,000 rural village stations.

Rural talent development

27 / 160

Since 2021, Taobao was the ﬁrst domestic e-commerce
platform to issue plastic restriction rules and actively promotes
the development of high-quality degradable plastic products.

Risk Management Committee

Since 2016, the Reunion System we helped
build has sent out alerts for 5,038 missing
children, and assisted in the recovery of
4,960 of them.

In 2022, we established the Alibaba Group Risk
Management Committee and issued the Alibaba
Risk Management General Outline.

We have trained 110,000 rural live-streamers since 2019, andcompleted 2.3 million rural livestreaming sessions.

In 2019, we were the ﬁrst technology company in China toreceive the "National Poverty Alleviation Organization Innovation
Award." In 2021, we were named a "National Exemplary
Organization in Poverty Alleviation."

Community resilience
In 2021, DAMO Academy’s Medical AI Team received the "National
Exemplary Organization for Pandemic Response in Science andTechnology" award from China's Ministry of Science andTechnology.

150+ / 260mn+
Since 2020, we have distributed 260 million items of medical
supplies, including COVID-19 vaccines, to over 150 countries.
Cainiao received a Stevie Awards silver medal in the "Most
Valuable Enterprise Response" category in 2022.

Social trust
Science and technology ethics

Empowering charities withtechnology

6,000 / 330

By June 2022, more than 330 charitableorganizations and more than 6,000 of ourengineers have participated in Alibaba's"Green Code", a platform to match techvolunteers with charitable projects.

Science and Technology Ethics
Governance Committee
We established our Science and Technology Ethics
Governance Committee in 2022 to ensure that
Alibaba's technologies always serve ethicalpurposes, and commit to being useful, reliable,
trustworthy, and controllable.

Data security and privacy protection

FIRST
Platform-based philanthropy

2.2mn+ / 500mn
In FY2022, our "Goods for Good" program
engaged over 2.2 million merchants and
500 million consumers on Taobao/Tmall
in channeling shopping proceeds tocharitable projects.

In 2015, Alibaba Cloud launched China's ﬁrst dataprotection initiative to serve business customers
with 3 principles: "you own your data, you
manage your data, and your data is protected."

Security and privacy
technological capacity
In the 2021 Gartner Solution Scorecard for
integrated IaaS and PaaS, Alibaba Cloud received
the highest scores in the security (required)category. Its six key security capacities are highly
recognized by authoritative institutions.

Trust

There are tens of millions of active MSMEs on our platform, of
which around 46% are led by women.

4,960

We have sent 27 "rural commissioners" and160 "rural technology oﬃcers" to spur rural
digital development according to local needs.

110,000 / 2.3mn

In 2021, we set up a three-tier sustainability
governance structure, including a dedicatedboard-level sustainability committee, an
executive-level sustainability steering committee, andan ESG working group.

Philanthropy

We created or supported, directly or indirectly, more than 60
million jobs.

Responsible production

FIRST

1,000 / 50,000

Technological innovations
for social challenges

Sustainability governancestructure

Community

Enabling inclusive employment

46%

Supporting rural value chain development

National Exemplary Organization in Poverty Alleviation

Together with partners, we provide diverse digital business capabilities for MSMEs.
In FY2022, over 9 million merchants used our Qianniu one-stop digitalmanagement platform. Also in FY2022, over 9 million merchants on our platforms
beneﬁtted from subsidies or other programs to help MSMEs during the pandemic.

60mn

In 2021, 832 counties previously on the national list of impoverished counties achieved a total sales of RMB128.1 billion on ourplatforms.

of our board members are independent directors.
Three of our four board committees are chaired byindependent directors.

Small
Businesses

Tens of millions

832 / 128.1bn

In 2015 we launched "Three Hours for A
Better World" for all our employees toparticipate in philanthropy. The program
was extended to the general public in
2017.

58%

Consumers

Cloud provides services to around 4 million enterprises
4mn /10mn Alibaba
worldwide, and helps tens of millions of MSMEs use cloudBy 2021, there were 7,023 Taobao Villages and 2,171 Taobao
Towns, with sales amounting to RMB1,300 billion in 2021.

Three hours

Employees

We have long been ranked ﬁrst among Chinese companies inopen source activity and impact. We won the most awards in the
China Association for Science and Technology’s 2021 open
source innovation list.

7,023 / 1,300bn

Environment

HighestExpanding e-commerce market
In the 2021 Gartner Solution Scorecard for integrated IaaS andPaaS, Alibaba Cloud received the highest scores in the coreevaluations of computing, storage, network, and security(required), separately.

Executive
Summary

Fueling Small Businesses

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Restoring Our Green Planet

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Executive
Summary

Environment

address the pervasive environmental and climate crisis and transform our society into
people have a better chance of living together in a healthy environment with blue skies
and thriving ecosystems.

∙ Greening our operations and value chain∙ Amplifying decarbonization through ourplatform ecosystem∙ Conserving and restoring nature

Community

a green and low-carbon “circular economy.” Through our efforts, we hope to help

Our environmental actions
place a focus on:

Small
Businesses

global challenges. Both the digital and green transitions are likely our best tools to

Consumers

We commit to helping conserve and restore the natural world we all rely on as it faces

Employees

Restoring Our
Green Planet

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Restoring Our Green Planet

Climate commitments and status

Executive
Summary

Climate risk assessment

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Carbon neutrality pledges

To help restore our planet and to sustain our own business, Alibaba has integrated climate risk management
Environment

into our business strategy and risk management system. In line with the recommendations of the Task Forceon Climate-related Financial Disclosure (TCFD), we work to identify potential risks and opportunities associatedwith climate change, and improve our capabilities to manage those risks.

By 2030
Achieve carbon
neutrality in operations

Governance
StrategyS
Inn ci-Te
ov ch
ati
on

Risk management
By 2030
Reduce value chain
emissions intensity
by 50%, and Alibaba
Cloud achieves carbon
neutrality

2021 - 2035
1.5 gigatons ofplatform ecosystem
decarbonization

Stakeholder
Ecosystem

Small
Businesses

The Alibaba Group Risk Management Committee is
responsible for reviewing the relevant risk assessments
and making corresponding institutional and management
arrangements separately. The Risk Management
Committee, chaired by the Chief Risk Officer, continues toincorporate climate risks into the company's overall risk
assessment and management system.

Consumers

The sustainability committee of Alibaba's board of
directors oversees and supervises Alibaba Group's
ESG strategy and implementation, including climate
risk management and carbon neutrality goals. The
sustainability steering committee, led by the board's
sustainability committee, works with the ESG working
group to plan and implement our ESG strategy.

Responsible
Technology,
Sustainable Future

Employees

Metrics
andTargets

Governanceyerg n
En sitionTra

Risk Management

Alibaba carbon neutrality pledges

We have made a three-fold emission reduction
pledge covering our own operations, value chain,and platform ecosystem. In addition, Alibaba hascommitted to the Science Based Targets initiative (SBTi).

Decarbonize Alibaba (Scopes 1 and 2): By 2030, we will achieve carbon neutrality in our own operations.
Green the value chain (Scope 3): By 2030, we will collaborate with our upstream and downstream value
chain partners to cut emission intensity by 50% from the base year of 2020. Alibaba Cloud will achieve
Scope 3 carbon neutrality during the same period.
Enable a low-carbon circular digital ecosystem (Scope 3+): Beyond our own operations and direct
value chains, we pledge to leverage our digital platforms to encourage even broader participation bystakeholders that can be reached by our efforts. By 2035, we will facilitate 1.5 gigatons of GHG emission
reduction over 15 years across Alibaba's digital ecosystem.

Trust

To guide our future actions, aligned with therecommendations of the TCFD, we have considereda range of scenarios, including those well below andabove a 2° C average global temperature change,
to better understand the potential impact of climatechange on Alibaba's businesses, communities, andstakeholders.

In December 2021, we released the Alibaba Group Carbon Neutrality Action Report, pledging to:

Philanthropy

We have analyzed the physical and transition risksof climate change in our businesses and identified
strategies for addressing risks, as well as potential
opportunities. Our goal for carbon neutrality adheresto the following general principles: direct carbon
reduction takes precedence over carbon removal,
and carbon removal takes precedence over offsets.
This prioritization approach offers the fastest andmost effective path to reducing the concentration ofgreenhouse gas (GHG) in the atmosphere, and is also
consistent with the Paris Agreement goals of limiting
the global temperature rise to 1.5 ° C.

Metrics and targets

Community

Strategy

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Since our pledge in December 2021, we have accelerated our efforts. According to BloombergNEF's

carbon dioxide equivalent (MtCO2e).¹ Among them, direct GHG emissions (i.e., Scope 1) accounted for 0.927

rankings, we were the largest purchaser of clean energy in 2021 among all Chinese companies. In the

million MtCO2e, including stationary combustion (such as the use of natural gas), direct fugitive emissions (suchfirst half of 2022 alone, we purchased more than 800 million kWh of clean electricity, a 150% increase

as refrigerant leakage), and mobile combustion (company-owned transportation in our retail business). In

over the full year of 2021. In FY2022, we cut a total of 619,944 tons of carbon emissions by changing

addition, indirect GHG emissions (i.e., Scope 2) from purchased electricity and heat were 4.445 million MtCO2e,

our energy mix to include more clean energy. Through our persistent efforts, over this time period,

mainly used for operating cloud computing data centers, retail stores, offices, and warehouses.

21.6% of the electricity for Alibaba Cloud was from clean energy, marking a good start for achievingcarbon neutrality by 2030. In July 2022, we signed a strategic agreement, including on eight green

Indirect GHG emissions along the value chains (i.e., Scope 3) that could be accurately assessed wereenergy projects, with State Power Investment Corporation (SPIC), the largest developer of clean energy

approximately 7.877 million MtCO2e, consisting mainly of fuel consumption in outsourced transportation andworldwide.

Environment

In FY2022 covering April 2021 to March 2022, Alibaba's GHG emissions totaled 13.249 million metric tons of

Executive
Summary

Current status of emissions

Chairman's
Letter2022

distribution services in the e-commerce business, purchased power in leased data centers, use of packaging
We will continue to advance our decarbonization solutions while maintaining our growth. And ourCertification Center (CEC) and audited by Bureau Veritas.

commitment goes far beyond reducing carbon emissions alone. This year we expanded our efforts to abroader set of environmental issues.

Alibaba's GHG emissions in FY2022 (in MtCO2e)4.445M

7.877M
Scope 1

Scope 2

We present our environmental efforts and progress in three parts:
Greening our operations and value chain
Amplifying decarbonization through our platform ecosystem
Conserving and restoring nature

Consumers

0.927M

Employees

and consumables, and employee travel. The inspection was completed by the China Environmental United

Scope 3likely to continue rising with business development in the short term. This growth mainly derives from (a) the

Small
Businesses

As projected in Alibaba's Carbon Neutrality Action Report, our carbon emissions have not yet peaked and aresteady expansion of our core business, such as in cloud computing, globalization, and offline retail storesareas, and (c) new businesses serving emerging customer needs that integrate both offline and online services.
These business activities will require higher power consumption (Scope 2) and more procurement from our

Community(b) developments to improve our fulfillment capabilities and user experiences, such as expansion of delivery

supply chain (Scope 3), contributing to an increase in new carbon emissions. We recognize that Alibaba's
position as a company that integrates technology, retail, and logistics businesses, with extensive online andsectors. At the same time, this also creates enormous opportunities for cross-sector innovations in our carbon
reduction efforts.

Trust¹ The scope of this inventory is the identified measurable significant source categories in Scopes 1, 2, and 3 GHG emissions within Alibaba's organizationaland reporting boundaries in FY2022 under the principle of operational control. The GHG categories covered in this inventory include carbon dioxide (CO2),methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), nitrogen trifluoride (NF3), and sulfur hexafluoride (SF6). As a result of
the inventory, emissions of five greenhouse gases, CO2, N2O, CH4, HFCs and SF6, were involved in this reporting period. Please refer to Appendix 3 for Scope 3
emission inventory categories.

Philanthropy

offline operations, means that our decarbonization plans must consider the complex interaction of multiple

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Restoring Our Green Planet

Greening our operations and value chain

Chairman's
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To achieve our operational carbon neutrality and environmental goals, we lead with our own spaces to make them

We have fully adopted water-saving hardware and sanitation equipment at ourmodels of green energy, water conservation, and resource efficiency, and then improve the operational efficiency ofcampuses. The 42 hectares of our Xixi Office Park B was designed and built in accordance

important infrastructure such as our data centers and logistics systems.

with "sponge city" standards, recycling 10,763 tons of rainwater in FY2022.

Executive
Summary

Water

Reclaimed water

US$352 million had been allocated to erect and refurbish green buildings, and US$451 million to construct energyefficient data centers.

Resource and waste management

Environment

10,763t

In February 2021, we issued an inaugural US$1 billion sustainability bond. By the end of FY2022, net proceeds ofWe have considered a range of ways to cut resource use. For exhibits in our office parks, we increased theuse of recycled materials and reduced decoration and material waste. We set aside recycling areas forGreenretail storesLow-carbon andcircular cloud

Smart andgreen logistics

Environmentfriendly suppliers

packing boxes in on-site post offices. For office electronics such as laptop computers, we encourage our
employees to extend their lifespan. We arrange for hazardous waste to be recycled by qualified suppliers inaccordance with relevant laws and regulations.

Sustainable office parks

We cannot reach our ultimate goals without the active engagement of our employees. We encourage

applying technological innovations that demonstrate ways to be green andsustainable behaviors through education on green consciousness and through systems we've set up.

low-carbon while providing our employees with more comfortable and vibrantworking environments. At our own office parks, we aim to:

Reduce 15% of water consumption per employee by 2025 compared to 2021

15%

GHG emissions
per unit area
2025 vs. 2021

Water consumption
per employee
2025 vs. 2021

Low carbon buildings
We follow circular principles with our building design,
to uphold with our buildings' daily maintenanceprocesses. All our future new construction will meet
the LEED Gold standard and the China green building
standard. Energy use monitoring and optimization
sensors and controls. AI models accounting for weather
and occupancy help us make dynamic, data-based
decisions on energy use. In addition, we have started

We encourage employees to use public transit.

reduction behaviors, such as turning off lights and HVAC in

We have installed more than 1,300 electric vehicle

idle spaces, printing double-sided, and recycling cartons.

chargers.

In FY2022, more than 70,000 employees completed nearly
1.13 million carbon reduction actions.

Avoided emissions from office renovations
In a recent project, we turned an old corporate park intoa green, smart, and healthy office space. An estimated
79,000 tons of carbon emissions were avoided
compared to a tear down and new construction. We
accomplished this with carefully selected approaches,
including the efficient use of materials, modular

Reducing plastic use in office parks

Reducing waste

We are converting to biodegradable packaging in our

We have established an internal shopping

dining halls and charge for disposable containers toplatform for employees to purchase slightly

discourage overuse.

blemished goods from our platforms.

Working with and within nature
Our global headquarters at Hangzhou Xixi Campus is adjacent to Xixi National Wetland Park, a natural

construction, building and decoration integration,

ecosystem brimming with life. Our campus covers 3.2 hectares of natural water body and is designed toventilation heat energy recycling, and solar installations.

preserve most of the location's original wetlands and integrate nature with our office buildings. Special trails
wind through the ecosystem and lead to outdoor meeting spaces. Strolling through the complex of natural

while ensuring safety and quality. This avoids GHG

ridges and knolls along the water, a visitor can smell flowers, hear birds, and spot fish. We are home to more

emissions from demolition and reconstruction.

than 100 species of plants, leading some to call our headquarters a natural ecosystem masked as a high-techoffice park. The campus was designed to show how people can live in harmony with and be inspired by nature.

Trust

retrofitting and renovating old buildings for new uses,

Philanthropy

are automated throughout our buildings using smart

We reward 14 types of energy-saving and carbon-

Low-carbon commute and travel

Community

materials use, and construction, and also continue

Low-carbon actions in the workplace

Small
Businesses

Reduce 15% of GHG emissions per unit area by 2025 compared to 2021

15%

Consumers

Employee engagement

Our green practices start with our office parks. We are actively researching and

Employees

Sustainableoffice parks

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Restoring Our Green Planet

Executive
Summary

Green retail stores
Intime Department StoresLow-carbon retail spaces
Our retail stores provide space to expand our environmental efforts beyond our offices in ways that touch andLow-carbon initiatives

engage the public. Striving to be a retail industry leader in energy savings and emissions reduction, we are

Environment

adopting power-saving technology and continue to shift to more efficient cold chains by upgrading equipment
and refrigerants. Below are some examples of our efforts to reduce GHG emissions.

Sun Art Retail
Automatic control of exhaust fans

A designated energy management team was established to monitor, analyze, andTo reduce GHG emissions, 17 new stores in FY2022

By the end of FY2022, we had upgraded automaticmanage energy efficiency and implement technical improvement programs.

upgraded to refrigerants with lower global

control of exhaust fans in 387 stores, reducing

warming potential.² To date, a total of 57 storesenergy consumption by more than 21 million kWhhave completed the upgrade.³

of electricity annually.

In 2021, three Intime department stores completed their air-conditioning upgrade, saving
a total of 3.43 million kWh of electricity. Twelve new stores completed the upgrade andAutomated store energy management

In FY2022, Intime traded 87 million kWh in green electricity, a year-over-year increase of

We completed upgrades for energy efficiency

We have installed automatic control systems in all

more than 190%, corresponding to around 62,000 tons of emissions reduction.

improvement for 1,146 automated sidewalks

stores to monitor energy use in real-time, annuallyat 377 stores by the end of FY2022, saving an

bringing 10-15% of energy saving for each store,

estimated 20 million kWh of electricity annually.

at the level of 700,000 kWh/year on average.

AwardsCommunityat 17 stores, generating more than 11 million kWh

In 2021, Intime Zhongda Store in Hangzhou was recognized as an energy
conservation demonstration project.

Small
Businesses

Energy-saving controls for moving sidewalks

Consumers

went into operation in 2022.

Sun Art has installed rooftop solar panel systems

Employees

Environmentally friendly refrigerants

Solar power

Chairman's
Letter2022

of electricity in FY2022. We aim to install solar
panels in at least 30 stores in two years, and at all

In 2021, four stores in Zhejiang Province were nationally recognized as green
shopping malls, and eighteen stores were recognized in Zhejiang Province's list ofgreen shopping malls.4⁴ Please refer to the two websites as below. http://www.mofcom.gov.cn/article/zcfb/zcgnmy/202102/20210203038331.shtml
http://www.zcom.gov.cn/art/2021/12/1/art_1384587_58933413.html

Trust² Global Warming Potential (GWP) is an indicator of the climate impact of greenhouse gas emissions, indicating the greenhouse effect of a certain greenhousegas over a certain period of time (20 years, 100 years, 500 years) corresponding to the mass of CO2 with the same effect, GWP for CO2=1.0.
³ From 2011, new stores began to use R404A refrigerant to replace the ozone-depleting R22 refrigerant. In 2018, new stores and remodeled stores used thelower GWP value R448A (GWP=1273) to replace R404A (GWP=3943) refrigerant.

Philanthropy

stores by 2030.

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Resource and waste management

We have adopted water-saving faucets in all RT-Mart stores, for an expected

Our stores have implemented resource and waste management in a variety of ways：

Executive
Summary

Water conservation

Chairman's
Letter2022

net saving of about 100,000 tons of water consumption annually. Since 2007,
Reduce food waste in retail stores: Sun Art Retail has continued to improve its systems to cut foodconsumption by about 1,000 tons per store every year, for a total of 490,000

waste across the entire life cycle including procurement, storage, processing, and sales. In FY2022, ourtons of water annually. Building on these practices, we have also set a target
at RT-Mart to decrease average water use by 3% per store in 2025 compared tothe base year 2020.

3%

Water consumption
per store
2025 vs. 2020

kitchen waste was reduced by 4%.
Reduce material usage: We have adopted digital receipts, label printing, and express order printing
to save tens of millions of articles of paper. We encourage merchants to use original boxes for delivery

Sun Art applied sustainable designs at the Kunshan RT-Mart Plaza. Both green building standards and "sponge
consumption and increase rainwater recycling. During construction, Sun Art adopted green construction policies
to control carbon emissions throughout the life cycle of the project.

retail locations have entirely transitioned from plastic to degradable plastic, paper, and recyclable nonwoven bags, while Sun Art has introduced degradable plastic bags across all stores.

Consumerscity" water efficiency principles were followed. In addition, we adjusted the building envelope to reduce energy

Packaging upgrade: Sun Art and Freshippo are providing consumers with recycled bags. Freshippo

Employees

and combine packages through our smart management systems.

Kunshan RT-Mart Commercial Plaza sustainable design

Environment

we have built a wastewater storage and circulation system, reducing water

Small
Businesses
Community
Philanthropy
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Low-carbon cloud services
For the tens of millions of businesses that rely on ourplatforms, Alibaba's cloud services provide the digitalcan be built. According to the Carbon Trust research
report, Alibaba Cloud's Carbon Benefits, cloudcustomers in China can avoid 85.5% of their computing
emissions by moving to Alibaba Cloud from on-premise

Energy efficiency
Using a variety of energy-saving strategies, such as artificial
intelligence (AI)-powered management algorithms and water-coolingtechniques, the average power usage effectiveness (PUE) for our selfoperated data centers in FY2022 was as low as 1.247, a leading levelin Asia. This represents a win for our business, our clients, and theenvironment. Looking forward, we aim to keep the annual PUE of self-

1.247

annual average PUE

owned data centers below 1.3.

Environment

backbone on which the ongoing green transformation

Executive
Summary

Low-carbon and circular cloud

Chairman's
Letter2022

equivalents, largely contributed by the efficiency of our
Employees

own internet data centers (IDC). ⁵
We are innovating continuously to build a "green
cloud" as set out in our carbon neutrality commitment,
focusing on increased energy efficiency, renewable

Alibaba Cloud's Panama power system guarantees uptime with less energy waste
Alibaba's self-built data center uses an innovative 10kV uninterruptible power supply system that reduces
the distribution link of the system by 66% and improves the efficiency by more than 3% to 97.5% compared

Consumers

electricity use, and recycling of energy and resources.

with the traditional method. The innovative equipment has been shortlisted for the 2021 National

carbon emissions avoided bymoving to Alibaba Cloud

Alibaba Cloud's Green Data Center is the only cloud computing data center selected by
China's Ministry of Ecology and Environment as one of the 2021 Green and Low-Carbon

Community

Alibaba Cloud helps green the data centerIndustrial Energy-Saving Technology Recommendation Catalog.

Small
Businesses

85.5%Best Practices.

and achievements.
In April 2022, Alibaba joined the Low-Carbon Patent Pledge, an international alliancefor low-carbon technology patent sharing, and made nine key patents for green data

Philanthropy

Alibaba Cloud's Green Data Center received the Green Innovation Recognition of
Excellence from the 2021 Paulson Prize for Sustainability for its energy-efficient practices

center technology free for the use of external parties.
Trust

⁵ The Carbon Trust is an international professional organization in the field of carbon neutrality.

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Executive
Summary

Water conservation
We take advantage of natural air cooling to preserve water. In our
Zhangbei Wulan center, with an average outside temperature of only 4°C,
reducing the water usage effectiveness (WUE) value to as low as 0.45L/
kWh, saving more than 80% compared to traditional cooling tower
schemes.6 Alibaba Cloud has also established a WUE management plan
to refine the management of water consumption in various divisions. In
FY2022, our reclaimed water recovery reached 11,899 tons and reclaimed

reclaimed waterprocurement

11,899 tons

reclaimed water
recoveryUsing renewable electricity
We are committed to powering our cloud services with 100%
clean energy worldwide by no later than 2030. To this end, weenergy transaction volume and usage. BloombergNEF rated
Alibaba Cloud first in renewable energy procurement in 2021 with

reduced around534,000

MtCO2e of emissions

a transaction volume of 269 GWh. In FY2022, Alibaba Cloud's own

consumption.

treatment, increasing the recycling and utilization of sewage water.
of the server building by 35% and reduce supplementary water

21.6% of cloud electricity

consumed was from clean sources

consumption by 26%. Between its launch in June 2021 and March 31,
2022, the project had already recovered 11,899 tons of water.

Waste management
suppliers to properly treat solid waste and hazardous waste (mainly lead-acid batteries, destroyed hard

Recycling of resources and energy

disks, etc.) in strict compliance with these standards and with regulations.

We recycle a large amount of waste heat generated by our servers. Waste

Number of recycled servers

heat from our self-built Alibaba Cloud Zhangbei Data Center is used toheat the adjacent office park and provide municipal heat. The heating load

Philanthropy

50,000of the first phase of the waste heat utilization project is 21MW, which by
the end of next year will reduce carbon emissions by 32,000 tons annually.

Extending warranties of

20 million

We also extend the life of our hardware. In FY2022, Alibaba refurbished
50,000 servers to extend the use cycle. Furthermore, we have extended themaintenance of all servers to five years, dismantled scrapped servers, andrecycled spare parts, leading to the extension of the warranty of 20 million
cores of servers in 2021.

6 Water Usage Effectiveness (WUE) is a parameter in the data center that analyzes how efficiently water is being utilized and is the ratio of theannual water usage of data centers to the energy consumption of IT equipment.

Trust

cores of servers

Community

We have unified standards for solid waste management from our server equipment and require our

SmallBusinesses

gas, with clean energy accounting for 21.6% of its total electricity

introduce a reverse osmosis (RO) sewage system for water
The water treatment project was able to reduce sewage discharge

data centers reduced around 534,000 MtCO2e (metric tons of CO2
equivalent) of emissions by purchasing clean energy and natural

The Zhangbei Miaotan Data Center implemented a project toConsumers

are already leading China's technology companies in clean

Alibaba Cloud's own data centers

Zhangbei Miaotan Industrial Park Data Center upgrade saves over 10,000
tons of water

Employees

water procurement amounted to 359,252 tons.

359,252 tons

Environment

we utilize air handling unit (AHU) technology and air cooler systems,

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The success of our business depends on a vast logistics network that ties together our facilities, stores, ecosystem
partners, and consumers. Efforts to make that network smarter and greener are an indispensable part of building a
low-carbon circular ecosystem. Cainiao was one of the first companies in China's logistics industry to launch a green
and green recycling, forming a start-to-finish green logistics solution from order generation to parcel delivery.

Green packaging
With help from our business partners and consumers,
we can reduce wasteful packaging through optimization,
substitution, and recycling. We are promoting delivery using
original manufacturer boxes. In FY2022, Cainiao's original
box shipping exceeded 700 million pieces. Intelligent
carton cutting, packaging

MtCO2eemissions reduction

algorithms, and AI can further
optimize carton models andPackagereduce our use of materials

programRecyclingby an average of 15%. We

Green transshipment

are also experimenting with

From the outset, Cainiao has designed

new materials to replace
plastics. In Southeast Asia,

Rooftop PV

Lazada is replacing nonrecyclable materials with FSC-certified packaging. To involve
our customers in these efforts, we have launched a Cainiao
box recycling program to facilitate their recycling of cartons atmany Cainiao stations.

Evaluation andfeedback

Package

Electronic label

Tape-free carton

Electronic packing list

Bio-based bags

Carton reuse

Green transport
Transport is one of the main sources of carbon emissions, so
Cainiao is targeting electrifying land transport and increasing
low-carbon air transport in order to reduce its GHG footprint.

international sustainable site standards.
This includes 24.9 MW of solar power
capacity installed to date, accountingfor 16,000 MtCO2e in carbon reductions
in FY2022. Solar will be expanded to all
Cainiao logistics warehouses by 2030.
Cainiao also uses AI technology to optimize
the parcel sub-warehousing process
and the door-to-door parcel routes andis experimenting with unmanned smart
logistics vehicles in "last mile" distribution.
Community

We plan to replace all short-haul logistics vehicles with electricvehicles by 2030. In Indonesia, along with our partner, Lazada
Logistics launched the Blue Vehicle, an environmentally-

Intelligent
parcel locker

friendly delivery vehicle which will allow Lazada to transition

Smart warehouse

Electric vehicle
Smart delivery

primarily to electric vehicles in Jakarta. In Vietnam, Lazada is
Shipping &Distribution

choosing electric bikes to provide delivery services. Alibaba
DAMO Academy and Cainiao have also fielded the Xiaomanlv("little donkey"), an Alibaba L4 autonomous driving vehicle,
to facilitate last-mile unmanned deliveries in communities
and campuses. Since its launch through March 31, 2022, it hasdelivered more than 10 million packages.

Trust

Cainiao start-to-finish green logistics solution

10

millionunmanned deliveries
by Xiaomanlv

Philanthropy

Terminal

Small
Businesses

Consumer

its logistics warehouses following highConsumers

Warehouse

700

million+original box shipping

Employees

Box recycling

16,000

Environment

initiative. We continue to exert efforts in the four directions of green transportation, green transfer, green packaging,

Executive
Summary

Smart and green logistics

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Environmental management at suppliers
Executive
Summary

Environment
Employees

their own carbon neutrality goals and action

setting standards for the use of consumables andplans and use effective measures to reduce

tracking material usage on a weekly basis. At the

carbon emissions. Alibaba Cloud plans tosame time, suppliers are encouraged to improve

promote carbon neutrality pilot actions for somepackaging efficiency, increase the recycling andsuppliers in FY2023, including signing carbon

reuse of cardboard boxes, and reduce the waste ofsuppliers have already participated.7 We encourage

neutrality action agreements and conducting

packaging materials. In FY2022 alone, 124,400 tons

our suppliers to comply with the Code in six key

performance appraisals.

of waste cardboard was recycled.

Transitioning to more recycledconstruction materials

Piloting low-carbon organic
agricultural products in Freshippo

We have cut down our exhibition and outdoor

Freshippo actively explores agricultural produce

advertising carbon emissions. For example,

that is both healthy and environmentally friendly

we are now using reusable materials in theand works with organic farm partners. In June 2022,

construction of exhibits, with 80% of the materials

the first batch of 30 types of certified low-carbon

made of reusable wood.

organic vegetables was launched in Freshippo

In FY2022, we launched the Alibaba Supplier ESG Codeof Conduct, which lays out high standards with respect
to environmental responsibilities. More than 10,000

10,000+suppliers signed ESG Code of Conduct

environmental areas: 1) environmental permits andIn addition to implementing green qualification

reports; 2) pollution prevention and resource savings;

requirements for suppliers and a green supplier label3) hazardous substances and waste; 4) greenhousemanagement system, we have specifically developed

gas emissions; 5) water resource management; and 6)

green procurement standards. We actively seek

exhaust gas emissions. We assess the environmentalout suppliers with a record of high environmental

performance of our suppliers by considering theirperformance and are also keen to share with thembusiness integrity, information disclosure, and risk

our own best practices to identify the tools for moremanagement. In these areas, we are setting clear

sustainable operations. In the following table arestandards, holding our suppliers responsible for making

examples of recent initiatives we have undertaken.

continuous improvements.

stores nationwide. This early pilot shows great
potential for the development of low-carbon andPhilanthropy

Sun Art classifies and manages office supplies by

footprints.

Community

We encourage Alibaba Cloud's suppliers to set

our greenhouse gas emissions and other environmental

Small
Businesses

Encouraging recycling in materials
and packaging in Sun Art

Consumers

Engaging with low-carbon
suppliers for Alibaba Cloud

Our suppliers are key partners in effectively reducing

low environmental impact agricultural products.
Trust

7 The numbers here refer to suppliers in the categories of media/event/service/engineering/office IT/logistics and those who have completed registration on
Alibaba's procurement platform. The statistics are as of May 7, 2022.

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Household activity currently accounts for more than 40% of total emissions in China, but an even greater 60% tofacilitate the transition to low-carbon production that will drive producers to develop greener products at more
affordable prices.

December 2021

January 2022

February 2022

Alibaba launched

Idle Fish launched

The Alibaba Carbon

the "OPEN C+" carbon

a carbon reduction

Neutrality Expert Committee

reduction measurement

calculator for

was introduced, providing

to help consumers

individuals, along withprofessional support andmeasure theirpromotional programs.

external independent review

decarbonization impact.

capacity for the theoreticalfoundations, measurement
methodologies, andAt Alibaba, we are well positioned to support the consumer transition to more sustainable consumption, and facilitate

implementation methods ofenterprises, especially MSMEs, in realizing high-quality development while minimizing their ecological footprint.

Scope 3+ programs.

Scopes 1, 2, and 3 definitions. We have done so in an attempt to take on more responsibility for the emissions
generated by a wider range of participants in the platform ecosystem.
Given the innovative nature of Scope 3+, we are committed to working with leading institutions and professionals
methodologies of Scope 3+, and to proactively share our research and methodologies.

May 2022

By March 31, 2022

In June 2022, Alibaba

Alibaba participated

Nearly 1,700 firms

launched ourin the publication

had adopted Alibaba"Carbon88" carbonof the Guideline on

Cloud's "Energy

ledger platform.

Quantification ofExpert" to help them

Emission Reduction

save energy, increase

Effects of Green andefficiency, and move

Low-Carbon Behaviors

towards carbon

to promote consumer

neutrality.

Value Chain

behaviors at scale.

Upstream of
suppliers

Suppliers

Merchants andservice providers

Consumers

Use, disposal,
and recycle

Platform
Ecosystem

Alibaba and leading

China Environmental United

consumer goods

Certification Center (CEC) andcompanies launched

Alibaba jointly published Scopethe "Decarbonization-

3+ Emissions Reduction: A New

friendly Action" program

Methodology for Corporate Climate

for consumer products

Actions Beyond Value Chains, withwhile issuing a guide forexpert contributions from the Carbon

how brands can boost

Trust.

their low-carbon products,
marketing, and logistics.

Use, disposal,
and recycle

Scope 3

Philanthropy

Consumers

August 2022
Community

Producers anddevelopers

Scopes1 and 2

July 2022

Small
Businesses

adoption of low-carbon

Consumers

to establish a solid scientific foundation in determining the definition, principles, and measurement

June 2022

Employees

In December 2021, we pioneered the concept of "Scope 3+" to measure GHG emissions beyond a firm's own

Scope 3+

Environment

70% of emissions in developed nations.8 To decarbonize at a societal level, we must stimulate demand for andProgress in Scope 3+ decarbonization
Executive
Summary

Amplifying decarbonization throughour platform ecosystem

Chairman's
Letter

2022

Control level
low

high
Trust

8 Source: Measures and Approaches for Transforming Consumption Patterns and Developing A Low-Carbon Society in China, 2020, Ministry of Ecology and Environment ofChina.

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We worked with renowned research institutions andprofessionals to expand the theoretical and methodologicalfrontiers of scientific carbon measurement. In August

Principles for identifying Scope3+ emission reduction projects

Enabled carbon abatement

Based on the two categories, we then establish the

Solutions (i.e., products or services) provided byprinciples for identifying Scope 3+ emission reduction

2022, with China Environmental United Certification Center(CEC), we jointly published Scope 3+ Emissions Reduction:
A New Methodology for Corporate Climate Actions Beyond
Value Chains, with expert contributions from the Carbon
Trust. In this report we proposed two key principles ofdecarbonization in Scope 3+.

performed with significantly less GHG emissions.
Enablement reduces emissions compared to thebaseline 'business-as-usual' (BAU) scenario.

to verify the difference in emissions when an entity takes
carbon reduction actions compared to the benchmark
scenario without such actions. With this basis, we canfurther divide the measurement of Scope 3+ emissions
enterprise in the carbon reduction action.

Scope 3+ emission reduction through engagementmeans that a company spurs its stakeholders(e.g., businesses and consumers) to reduce GHG
emissions that are not covered in the company's
own Scope 1, 2, and 3 emissions.

idea that a platform company can play a prominentrole in climate change mitigation by proactively
either enabling or engaging with stakeholders to
unlock their potential in reducing emissions.

The emission reductions need to be measurable,
explainable, and verifiable in accordance withthe methodologies developed by professionalorganizations.
We have actively collaborated with industry-leading
certification organizations, such as the China Instituteof Standardization, the China Environmental United
Certification Center, China Beijing Environmental
Exchange, and others, on principles and specificcalculation methodologies for Scope 3+ to ensure its
reliability and wide applicability, and we seek morepartners in this effort.

Small
Businesses

The Scope 3+ engagement category highlights theSuch projects must offer emission reduction
effects.

Consumers

reductions into two categories depending on the role of the

Engaged carbon abatement

projects.

Employees

The essential logic of carbon reduction measurement isenterprises that enable the same function to be

Environment

Two categories ofdecarbonization in Scope 3+

Executive
Summary

Scope 3+ scientific methodologies

Chairman's
Letter2022

Community
Philanthropy
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Executive
Summary

Scope 3+ actions

We launched the "Carbon88" carbon ledger platform in 2022,
covering some of Alibaba's most-used apps. By July 2022, overEnvironment

Carbon88
all-in-one
carbon ledger platform

Consumer carbon reduction

Carbon88 gives consumer a panoramic view of greener living

20 million users had actively participated in carbon reduction

Chairman's
Letter2022

through a greener consumption style. The system is built on
top of our OPEN C+ engine. Currently, the platform covers
more than 70 scenarios. All methods and scenarios have been

Employees

reviewed and approved by our committee of independent,
external experts.
After consumers choose to opt-in, the Carbon88 platformcollects data only for the purpose of calculating carbon
emissions. The process is designed to fully comply with

Consumers

our principles to safeguard consumer privacy and security:
minimal data collection for specific purposes, maximum userawareness and choices, and the best data security protection.
In the future, we aim to promote the carbon ledger platform to help

TaobaoAmap

Ele.meCainiao

Idle Fish

The OPEN C+ consumer carbon reduction computation engine
provides measurement services for Carbon88
and will open to the public in the future.

Idle Fish launched the carbon credit projectat the end of January 2022, where users canmeasure potential carbon reduction whenbuying and selling second-hand goods.

Amap and the Beijing Transportation
Commission jointly developed the "Beijing
Municipality Mobility-as-a-Service (MaaS)
Platform." Users are provided withpersonalized routing guidance andrewarded for using public transport. In 2021,
a total of 24,500 tons of avoided emissions
accumulated by users were successfully
traded in the carbon markets.

Philanthropy

Starting April 20, 2022, Ele.me users were able tomeasure their potential carbon reduction fromchoosing the "cutlery free”option when orderingtakeout. Since then, more than 13 million users
have enabled this option in their orders.

Guidance on carbon reduction options in various apps makes it easy for
consumers to choose low-carbon actions in everyday life.

Community

In March 2022, Taobao introduced a new function for consumers to measure their carbon
reduction when buying certiﬁed "Energy-Saving
and Carbon Reducing" home appliances. By June30, 2022, over 4,000 merchants had listed
430,000 certiﬁed home appliances. During the6.18 Shopping Festival in 2022, the potential
carbon reduction from energy eﬃcient consumer
products sold on Taobao and Tmall was estimated to be around 153,000 tons.

Small
Businesses

more of our partners better measure and practice carbon reduction.

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In July 2022, Alibaba jointly launched the "Decarbonization-friendly Action" program with 19 brands in an effort

Alibaba Cloud launched the "Energy Expert" platform to

to increase carbon reduction actions in the consumer goods industry and provide incentives for consumers to

help enterprises reduce emissions and increase efficiency.

develop decarbonization habits. Our group set three collective targets:

Energy Expert can identify energy inefficiencies andlosses and optimize energy use such as in HVAC (Heating,

Promote more low-carbon goods, from design to production, together with science-based

Ventilation, and Air Conditioning) systems through smart

measurements.

algorithms. It also provides suggestions to improve

Integrate the supply chain with low-carbon packaging and logistics.

efficiency. As of FY2022, nearly 1,700 companies had

Enhance consumer awareness and familiarity with green goods through low-carbon marketing.

already begun to use the Energy Expert platform.

1,700

companies using Energy Expert

Environment

Energy Expert Platform to help green other organizations

Executive
Summary

Partnership for scaling up consumer carbon reduction

Chairman's
Letter2022

Employees

In the future, the "Decarbonization-friendly Action" program will continue to introduce science-based methods
and technologies to support all three goals, increase green consumption opportunities, and provide more brands
with long-term carbon reduction guidelines.

Consumers
Community

DECARBONIZATION-FRIENDLYACTIONS

Energy Expert allows carbon emissions to be measured in real-time and energyuse, such as in HVAC units, to be optimized through smart, learning algorithms

Small
Businesses

Leading brands are joining together for

Philanthropy

Partial list of participating brands. Ordered alphabetically by Chinese names (Pinyin).
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Conserving and restoring nature

Alibaba joined as the first pilot

Alibaba joined the Global Allianceplatform for implementing theto Combat the Illegal Wildlife Trade"Standard for Online Transaction of

We worked together to educate

Wildlife Products," jointly developed

online users about the illegal wildlife

by the National Forests andtrade, raise their awareness, andGrasslands Administration, together

empower them to report suspiciouswith other agencies and non-profit

wildlife trade information to theorganizations.

platform.

losses, ecological degradation, and water and resource scarcity to marine pollution. We work closelywith environmental organizations, the public, and other relevant stakeholders to collectively tackle these2020

environmental challenges.

Alibaba launched the Refuse to Eat Wild Animals

Enhancing biodiversity conservation

Ele.me joined hands with the China Wildlife Conservation

Cracking down on the illegal wildlife trade on our platforms

and launched a joint initiative with like-minded companies

Globally, the illegal trade of wildlife is among the biggest threats to biodiversity. We understand ourconsumption of many wild animals.

Consumers

Related to the global climate crisis, we also face a series of interlinked environmental crises, from biodiversity

Employees

2018

Environment

2016

Executive
Summary

Alibaba's efforts to tackle the trade of wildlife products

Chairman's
Letter

2022

campaign

and individuals to actively participate in eliminating the

Small
Businesses

Association to carry out this public advocacy campaign

responsibility as the world's largest e-commerce market and we strictly monitor and take action to prevent theWe carry out such efforts in three areas:
Discovering and identifying illegal wildlife trading on platforms
Cooperating with law enforcement agencies when violations are found

We have banned the sale of more than 30,000 species of wild animals and plants on our platforms, covering
species on the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), theAlibaba jointly launched the GreenNet Initiative
When users search for illegal or harmful products
such as "ivory" or "rhinoceros horns" on Taobao,
they are directed to educational information andrecommendations for legal alternatives.

Philanthropy

Carrying out user awareness programs and encouraging users to report and prevent illegal activities

2020

Community

illegal wildlife trade.

List of Key Protected Wild Animals in China, and the List of Terrestrial Wild Animals with Important Ecological,
Scientific and Social Value Protected by China. AI helps us identify text, pictures, videos, live broadcasts, andTrustother content that may represent attempts at illicit wildlife sales.

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Supporting water conservation and security

Rapid advances in digital technologies, especially cloud services and AI, have greatly changed society's

We believe the protection of water ecosystems and resources is critical - and ought to be a sharedcapabilities for protecting the environment. We apply our technological expertise to provide technical solutions

endeavor. In 2012, Alibaba Foundation launched "Qingyuan Action" - meaning "water source protection"that help make our planet cleaner and greener.

in Chinese - as a project platform for NGOs to participate in water conservation efforts. Since its inception,
regular water environment monitoring. The monitoring covers more than ten river basins and has helped
more than 10,000 enterprises conduct environmental conservation.

Alibaba's AI-powered mobile terminals help protect
endangered animals in Sichuan

Sichuan golden snub-nosed monkeys, forest musk deer, and black bears. Following training with approximately
280,000 photos of 24 key monitored species in Laohegou, the Alibaba Cloud Wildlife AI Identification System can
automatically identify and classify different species with an accuracy rate of 99%. Rangers are equipped withmodified patrol terminals that reduce their previous workload by 80%. With these patrols now powered by our
giant pandas.

In 2018, the Alibaba Foundation and Minsheng Tonghui Charity Foundation jointly launched the"Qiandao Lake Water Fund" project to address agricultural pollution at Qiandao Lake, the water sourcefor Hangzhou and home to 200,000 residents, most of whom are farmers. Non-point source pollution is acommon challenge in water management and is a notoriously difficult issue worldwide. We establishedconservation demonstration areas at the source of rivers and outlets of lakes to reduce pollution bymeans of source reduction and process interception while scientifically monitoring the areas andestablishing practices to balance production and pollution reduction. By the conclusion of the first phaseat the end of 2021, the project had promoted the improvement of agricultural management measures

Consumers

cloud intelligence technology, the staff have seen a big leap in their ability to identify and locate animals including

Improving the water environment in our surrounding communities
Employees

The Laohegou Protected Area is one of the best habitats for giant pandas and other rare animals such as

Environment

the project has supported dozens of environmental NGOs, with more than 200 projects, to carry out

Executive
Summary

Digital technology to protect biodiversity

Chairman's
Letter2022

on more than 330 hectares of farmland to reduce water pollution. This project was an award-winningone of the "100+ Biodiversity Positive Practices and Actions Around the World" by the United Nations
Convention on Biological Diversity COP15 in 2021, and included in the United Nations Food andAgriculture Organization (FAO)’s Nature-based Agriculture Solutions. In April 2022, the second phase of the

Small
Businesses

environmental protection project in the 2020 China Charity Competition and was also recognized as

project was launched and plans to assist local governments to expand nature-based solutions and bestvalue creation and a compensation mechanism, and broaden public participation.

Community

management practices, explore market-based tools for water conservation through ecological productPhilanthropy
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Executive
Summary

Engaging with stakeholders and citizens toamplify impact
Public awareness and participation

Environmental information disclosure is the basis for environmental supervision and public participation. We

Public participation is one of the most effective ways to promote environmental protection. To this end,

support leading environmental NGOs in China, have established a public environmental information network,

the Alibaba Foundation has supported the China Nature Education Forum since its ideation in 2012 forand fund institutions such as the Beijing-based Friends of Nature, the Institute of Public and Environmental

nine consecutive years. In addition, we have helped build national and regional networks to educate

Affairs, SEE Conservation, the Changsha Green Human Environmental Protection Science Promotion Center, andChinese citizens about biodiversity conservation and low-carbon living.

the Beijing Heyi Institute.

map and by far its largest environmental
information database platform. Blue Map
2.0 was jointly developed by the Instituteof Public and Environmental Affairs, SEE
Using big data, Blue Map reports air quality
information for 380 cities and also provides
wastewater monitoring. Waste emissions

Foundation, established the Dreamland Nature Center, an urban nature experience center. The center
combines parks, NGOs, schools and universities, and other institutions, providing the space, curriculums, andactivities that promote public nature education. As of December 2021, the Center had hosted nearly 1.5 million
visitors, developed more than 60 courses, and trained more than 2,000 qualified and officially registered"green vest" volunteers. These volunteers guide the public on free tours to instill love for nature, teach naturalsciences, and garner support for protecting the environment. The green vest program was awarded the gold
medal at the Fifth National Volunteer Service Competition. The Center was selected as a nature school pilot by
the Education Center of the Ministry of Ecology and Environment, and as one of the "100+ Biodiversity Positive
Practices and Actions Around the World" by the UN Convention on Biological Diversity COP15 in 2021.

Small
Businesses

Foundation, and the Alibaba Foundation.

In 2017, the Alibaba Foundation, together with the Hangzhou Botanical Garden and The Paradise International
Consumers

Pollution Map, is China's first environmental

Employees

The Blue Map app, formerly named

Hangzhou Dreamland Nature Center
instills love for nature and conservation

Environment

Environmental monitoring network

The Blue Map

Chairman's
Letter2022

information for more than 9,000 waste gas
can now be searched in real-time. The
public can participate via social platforms inreporting excessive sewage discharge. This

Community

and wastewater discharge sources in China

gives everyone a part to play in restoring
our clear water and blue skies.
Philanthropy
TrustEnvironmental, Social, and Governance Reportbetter versions of themselves. We believe that how we treat our employees and support
their growth will affect how they serve our customers and communities, and determine

work environment∙ Fair and competitive compensation and"benefits with warmth"∙ Abundant learning and career opportunities∙ Employee health and vitality

Employees
Employees

talents, roles, views, and cultures. We embrace the principle of helping people become∙ An equal, dignified, inclusive, and diverse

Environment

Alibaba has thrived entrepreneurially and culturally with a diverse set of people,

To accomplish this goal, we
commit to four norms:

Executive
Summary

Supporting Our
People065
062
061 // 066

Supporting Our People

Chairman's
Letter2022

how sustainably we can develop as a company.
Consumers
Small
Small
Businesses
Businesses
Community
Philanthropy
TrustEnvironmental, Social, and Governance Report067
063 // 068064

Supporting Our People

When Alibaba was founded over 20 years ago, the original employees envisioned a company different fromthose they had known before. They imagined a company that embraces a diversity of people, talents, roles,

diverse work environment is crucial to unleash the potential of our employees and to help stimulate
collaboration. Based on Alibaba's unique culture, we have always tried to adhere to the following
people-oriented values:

Environment

views, backgrounds, and lifestyles, where people could be different and even disagree with each other, yet still

As a technology company that operates globally, we believe that an equal, dignified, inclusive, andwork together and challenge one another to learn and grow. They pictured a company that eschews traditional
hierarchy for a direct, candid, and collaborative culture. We would not have survived and grown over all theseyears without such a culture among our people, or "Aliren." Alibaba has developed into a global technology
company with 254,941 diverse and talented Aliren as of March 31, 2022, working in twenty-seven countries andTrust makes
everything
simple254,941

27 countries and regions

If not now, when?
If not me, who?

Live seriously,
work happily

Consumers

talented employees working acrossToday's best
performance istomorrow's baseline

Change is the
only constant

Employees

Customers first,
employees second,
shareholders third

regions.

We have

Executive
Summary

An equal, dignified, inclusive, anddiverse work environment

Chairman's
Letter2022

Customers first, employees second, shareholders third

Trust makes everything simple
Complexity begets complexity, and simplicity breeds simplicity. Aliren are straightforward – what you see iswhat you get. With trust, there is no second-guessing or suspicion, and the result is simplicity and efficiency.

Whether you change or not, the world is changing, our customers are changing and the competitive landscapeis changing. We must face change with respect and humility. Whether you change yourself or create change,
both are the best kinds of change. Embracing change is the most unique part of our DNA.

Community

Change is the only constant

Small
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This reflects our choice of what’s important in the order of priority. Only by creating sustained customer value
can employees grow and shareholders achieve long-term benefit.

Today's best performance is tomorrow's baseline

If not now, when? If not me, who?
This was a tagline in Alibaba’s first job advertisement and became our first proverb. It encourages employees
to think independently, be brave and take responsibility, and be diligent in exploration.

Philanthropy

In bad times, we know how to motivate ourselves; in good times, we dare to set “dream targets” (stretch
goals). We must challenge ourselves, motivate ourselves and exceed ourselves.

Live seriously, work happily
Trust

Enjoy work as you enjoy life; treat life seriously as you do work. If you live with purpose, you will find reward.
You make Alibaba different and make your loved ones proud. Everyone has their own view of work and life; werespect our people's choices.

Environmental, Social, and Governance Report

Diversity and inclusion

Executive
Summary

Equality and respect

069
065 // 070
066

Supporting Our People

CultureWe have set up an office under the Working

We take diversity as a great source of strength.

process and on to all aspects of our work. We codify

Environment Committee, one task of which is

We believe a workplace that appreciates andour values in internal management rules such as

to independently receive and handle reports ofseeks diversity helps us attract talent and enables

As a global company, we respect andthe Alibaba Group Code of Business Conduct, which

sexual harassment. We also set up the ALI-WE, aemployees to contribute and innovate to the best ofembrace diverse cultures, lifestyles, and ways

explicitly prohibits discrimination for any reason or

working group that promotes a healthy working

their ability. The diverse perspectives of employees,of working. A diverse and inclusive teamin any form. We aim to provide fair and inclusive

environment and protects the rights of employees inincluding their empathy for different communities

is a microcosm of the ecosystem of global

growth opportunities for our employees regardlessthe workplace. Moreover, the Alibaba Group Code ofand social problems, can enable us to think inparticipants we serve and cooperate with.

of nationality, race, ethnicity, age, gender, religious

Conduct against Sexual Harassment was released

fundamentally different ways and improve ourOpenness and inclusiveness make our teambelief, or cultural background.

on October 18, 2021, further emphasizing our "zeroproducts and services.

more creative and accountable, so that we

Genderaround the world.

to the board of directors, it is dedicated to ensuring

in order to better protect the rights and interests of

By the end of FY2022, our current workforce wasthat we maintain a safe, healthy, and inclusive

employees and provide them with a fair and healthy

evenly split by gender (49.5% female, 50.5% male).

working environment. Five female senior executives

working environment.

One facet of diversity that has always made Alibaba

We are aware that technological innovation

stand out in the technology industry is our deep

is not a silo; instead, it must be closely

reservoir of women in leadership roles without

integrated with the commercial markets inwhom the achievements of Alibaba during the lastorder to better serve our ecosystem and the

20 years would not have been possible. As of thereal economy. This not only requires us torelease date of this report, 39% of Alibaba's board

have a deep pool of diverse and professional

directors and senior executives were women.

talent, but also highlights the need toconstituted the first committee.

Diverse collaboration

facilitate trust and collaboration among
different teams.

49.5%

We employed

2,007

of our 250,000 strong workforce andstaff with physical disabilities.

39% of Alibaba's board

We implemented

accessibility renovations.

We will continue to seek further diversity, not only in terms of gender, ethnicity, and nationality but also

Philanthropy

directors and senior executives.

32

Community

Women make up

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We have established a labor union at the group level

Consumers

Working Environment Committee. Reporting directly

Employees

On August 9, 2021, we established Alibaba Group's

can better serve the needs of our customers

Environment

We promote equality and respect from the hiring

tolerance" policy against sexual harassment.

Chairman's
Letter2022

views and opinions, which are incorporated into our principles and decision-making. We will strive torespect and tolerate each other's differences and actively seek out and embrace differences with open
our community's diverse knowledge and skills.

Trust

arms. Such inclusivity will help us recognize our biases and tailor our products and services to maximize

Environmental, Social, and Governance Report

071
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068

Supporting Our People

in their own departments but across Alibaba. Thisare committed to promoting a culture of sharing.

culture is enshrined from the top management down,"Trust makes everything simple" is one of the values

as exemplified in regular "Juice with Daniel" meetings

introduced previously that we aim to uphold. We

between Alibaba Group Chairman and CEO Daniel

hope that all employees can maintain this culture

Zhang and staff, as well as in similar meetings withof simplicity, upholding openness and transparency.

other executives, including our online and offline

Adhering to this principle is the key for us to thrive in a

International Townhall series that connect worldwide

dynamic and unpredictable environment.

employees with our global headquarters. At all levels,International Townhalls

Environment

We value the ideas and needs of our employees andExecutive
Summary

Active and collegial engagement

Chairman's
Letter2022

managers are encouraged to post open office hours
for colleagues across the company to "book" with thembarrier-free interactions, with online and offline activities

and meet.

Employees

At all levels, we have sought to build a culture ofand technological tools to encourage employees andmanagers to communicate more frequently, not justConsumers

AliwayJuice with Daniel

Now running for 13 years, Aliway is Alibaba's lively
internal forum where Aliren share and exchangethoughts and experiences, and help each other withencourages dialogue, and is an important example for other managers to follow. Alibaba Group Chairman and CEOquestions and problems. Aliway is an open andDaniel Zhang sets up regular sessions to facilitate frank communication with groups of employees. In FY2022, eighttransparent communication forum, true to Alibaba'svalues and long-held belief that only candid

promotions, job transfers, performance evaluation, customer relations, management practices, and company strategy

discussions can bring us long-term value. In FY2022,

and actions, among others. In FY2022, 90,435 employees read session summaries, totaling 565,859 pageviews.

123,867 employees were active on Aliway.¹
Community

such sessions were held with summaries made available to all Aliren. Topics of discussions included employee welfare,

Small
Businesses

A candid and open culture starts from the top. "Juice with Daniel" is one of many avenues through which Alibaba

Conversations in these forums have prompted company policy adjustments and new benefit plans for employees, suchas canceling weekly reports, removing employee ranks from directories, more support for internal transfers, travel policychanges, and the launch of companionship and parental leave.

Bookingand employees, and encourages managers to take the initiative to communicate with employees.
Managers open their digital calendars on our Booking system, and employees, including those in otherdepartments, can "book" conversation slots to meet with them. The program facilitates both online andPhilanthropy"Booking" is an Alibaba tradition that seeks to break vertical and horizontal barriers between managers

offline communications between managers and employees.
Trust¹ Active employees on Aliway are defined as employees who logged in and browsed the system at least once in FY2022.

Environmental, Social, and Governance Report

We are committed to sharing the fruits of the company's development with our people. In providing
compensation and benefits, we are guided by our core value to "work happily; live seriously" and strive to

Executive
Summary

Fair and competitive compensationand "benefits with warmth"

073
069 // 074
070

Supporting Our People

Chairman's
Letter2022

Connecting to the young and talented
Each year, we host enriching programs to attract top talents through the Ali Stars tech talent program at various
universities, where we invite senior managers to discuss the future with young students. Once a year, we alsoorganize a series of "Coffee with Alibaba" meetings around campuses, where our employees chat with students

Professional hiring and recruitment

events of the season. Each of our departments presents in the show, and students vote to select their favorite. This
gives everyone a taste of each department, while at the same time cultivating an appreciation of Alibaba's lively

During our hiring process, we adhere to the principles of equality and fairness. We follow the "Alibaba Hiring Pact," inwork culture.

about their careers at Alibaba. Our "Minute of Blinding Lights" comedy talk show is one of the most popular student

Environment

realize our objective of delivering "benefits with warmth."which we promise to provide all candidates fair access to information and resources, and promote a transparent andWe have rolled out the "Let's Go Interns" platform, whereby we encourage interns to share their life and work
experiences. The platform's "Speak Up Interns" activity gets interns to come together to learn from each other's
Alibaba respects and protects the rights and interests of employees, follows the Universal Declaration of Humaninternship experiences and make friends. Through these activities, we offer talented recruits a flavor of our

Rights, the International Labor Organization (ILO) Convention, the Labor Law of the People's Republic of China andengaging company culture as well as practical help to make a smooth transition from the campus to the workplace.

Employees

friendly recruitment process. We continue to work with various universities and research institutions to recruit talent.

other international conventions and local regulations on labor and employee rights. We sign labor contracts with
Consumers

employees in accordance with the law, adhere to the principle of equal employment, firmly oppose employment
discrimination, and require that the recruitment, promotion, and remuneration of employees be non-discriminatory.
We treat employees of different nationalities, races, ages, genders, religious beliefs, and cultural backgrounds fairly
and equitably, protect the legitimate rights and interests of female employees, and resist all forms of child labor andforced labor. We let employees equally enjoy their legal rights to labor remuneration, rest and leave, access to labor

Small
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safety and health protection, social insurance and welfare, etc. For qualified persons with disabilities, Alibaba provides
effective and reasonable accommodations required for work in a manner consistent with applicable laws.
We have established internal management codes such as the Alibaba Code of Business Conduct, the Employee
Disciplinary System, the Alibaba Group Employee Leave Policy, and the Employee Performance Management System

Alibaba became a party to the UN Global Compact in February 2021, endorsing and supporting the initiative's ten principles(please refer to Appendix 5 for more details) and incorporating them into our corporate strategy, culture, and daily operations.

Being able to recruit the best talent from schools is a major
factor in the vitality of Alibaba's technology team. Every year, our"Ali Star" program recruits are the cream of the crop that standAlibaba was ranked among the Top 10
Chinese companies in the Forbes 2021
Global Best Employers.

NO. 1

”

Alibaba was ranked as the most
attractive employer for business and art
students in China in Universum's list of
the Top 20 Most Attractive Employers for
Chinese Students in 2021.

Trust

out from tens of thousands of university candidates.

Top 10

Yikai Wang, Wuhan University '22

Philanthropy

Ali Star“

These activities allowed me to fully appreciate Alibaba's culture andother aspects of life there, making it much easier for me to blend
into the company. And the coffee was delicious!

Community

to ensure that employees can work and grow in a fair environment with great prospects.

Environmental, Social, and Governance Report

Supporting Our People

075
071 // 076
072

a 360-degree review. We had a 98% feedback

have highly motivated and skilled employees. To attract

rate for the questionnaires, with employees giving

and maintain such a team, we have established a process

an average evaluation score of 88.66 points (outthat sets salary and bonus incentives with both internalof 90) for their managers and 85.13 points (out ofconsistency and external competitiveness. Employees who90) for their whole work environment, including

have worked hard receive recognition for their contribution

subordinates and management.

to the company through a year-end performance-based

as a model case of worker benefits.
In 2021, Alibaba launched the "Alibaba WeCare Program" to upgrade our benefits. We added
companionship leave, parental leave, and leave for long-term service, while introducing travelsubsidies. We have also launched remote hybrid work to try to give people more flexibility in balancing
first quarter of 2022.

"Benefits with Warmth"
We provide every one of our employees "Benefits

future with employees and cultivating a long-term ethos arewith Warmth" to ensure they have peace offundamental driving forces for the sustainable development

mind in and outside of work. They receive theof our business. With this in mind, we became one of the"Complete Journey Care" benefits plan, which

first major technology companies in China to commit togoes beyond standard corporate benefits towidespread employee equity awards.

give employees comprehensive coverage in
wealth protection, work-life balance, and healthcoverage. We are also one of the first amonga systematic and open performance evaluation, conducted

technology companies in China to roll out thesemi-annually or quarterly for regular feedback. At the

hybrid work program.

beginning of each period, managers and employees set
In terms of health coverage, we provide medical

and promote a spirit of continuous communication andcheck-up packages for employees and insurance

coaching. Managers and human resources professionals

for employees and their children. We have beenmust combine self-evaluations with those from others for arolling out to more employees our Carnation

comprehensive review. All results are shared transparently

Parents program. This plan provides their parents

with employees, and if the employee has objections, they

with a free comprehensive medical exam eachcan apply to an appeals channel staffed by a dedicatedyear and is available in 169 cities in China.

employee's family. The "Letter Home" and the book shares with them the progress that the company and
our Aliren have made over the year.

Community

out clear goals that emphasize consensus within the group

On every Chinese New Year, Alibaba has a long-standing tradition to send a letter and a book to every

Small
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To maintain fairness in our compensation decisions, we have

A Letter Home

Consumers

equity incentives that align with our belief that sharing the

Employees

grow with the company in the long run. We do this throughfor over 65,000 parents of our employees. In 2021, the program was featured by the Internet Society of China

work and home obligations. Over 28,000 employees took companionship leave to care for family in thebonus.
At the same time, we strive to reward employees who can

As of FY2022, we had provided insurance for 30,000 employees' children and arranged medical check-ups

Environment

To build a world-class technology company, we must

Executive
Summary

Fair and competitive pay

Chairman's
Letter

2022

reconsideration team. At the same time, we provide
can improve and grow.
As part of our open culture, we attach great importance tofeedback from employees, regularly measure employee

Philanthropy

performance feedback resources to ensure that employees

satisfaction, and listen to their voices. In 2022, we distributed
subordinates, managers, partners, and self-evaluations forTrust

97,827 employee questionnaires seeking feedback on

Environmental, Social, and Governance Report

Supporting Our People

077
073 // 078
074

Mutual aid program for employees and their families during emergencies

Special hardship aid program for employees

iHealthPhysical and mental health consultations, regular health and wellness education

A Letter Home, Women's Day gift, Mid-Autumn Festival gift packs, etc.

Long-term service leave

For every ten years of employment, employees get 20 additionaldays of paid service leave to recharge and explore

Consumers

iHome

Employees

Holiday packages

EnvironmentiHope

Executive
SummaryiHelp

Chairman's
Letter2022

Helps employees with down payments on their first homes

Gifts at 1, 3, 5, and 10 years employment milestones

Flexible work arrangement
Holidays

Parents of employees are entitled to an annual health exam

Maternity leave

Maternity and paternity leave, breastfeeding time, and leave for parentsof children under the age of three

Annual leave, leave for travel, marriage, and personal situations

Employee annual physical examination
Commercial insurance

Insurance for required and supplementary medical coverage, critical
illnesses, accidents, and travel

iBaby & Insurance for kids

Help new parents navigate issues such as school enrollment andprovide supplementary medical insurance coverage for kids

Companionship leave

Seven work days of paid companionship leave to spend time with family

Philanthropy

Annual health exam for employees

Community

Teams are encouraged to try more flexible, hybrid work for one day a week

Carnation parent care plan

Small
Businesses

Ali-versaries

TrustEnvironmental, Social, and Governance Report079
075 // 080
076

Supporting Our People

Executive
Summary

Abundant learning and career
opportunities
means giving them the opportunity to make the most of their abilities and achieve a sense of value, personalof learning resources and development

employee training time reached 49 hours.²

growth, and belonging in their work. In this digital era of rapid transformation, providing growth opportunities

opportunities such as best-practice

is of particular significance for their own long-term development.

sharing, rotational programs, professional

We also put emphasis on training new employees andadvancement, coaching and mentorship,

new managers. In FY2022, we conducted a total of 344

To achieve these goals, we are committed to becoming an organization for learning and talent development.

and external exchange opportunities. We

offline sessions for new employees, and 145 offline

We strive in two directions: one is to provide a wealth of learning and training opportunities at different career

encourage employees to continue to develop

sessions for new managers.

stages and across different professional fields; the other is to provide the right job opportunities, continuous

professional knowledge and skills, which aresupport, and feedback mechanisms to accompany employees as they grow. We also encourage internal talent

critical in the current era of rapid technologicalIn addition to training opportunities, we upgraded ourmobility, making Alibaba itself a dynamic talent market.

innovation.

learning and knowledge sharing platform, seeking

A comprehensive talent learning and development system

We have set up a dedicated team responsible

Based on the concept of "Learning in Alibaba," we have established a set of all-around learning mechanisms,

coaching in the basics of technical skills,

we have built a multi-layered online and offline integrated curriculum and training certification system,

for training new technical recruits, providing
developing learning platforms, and theLeadership development

As a company with a strong values-based culture, we want

We focus on the leadership development ladder throughevery Aliren to start their journey on the right track. All new

programs such as "What Managers Must Know," "Young

employees are enrolled in an immersive 5-day "Dream

Leaders Training Camp," and "Executive Coaching." Our

Academy" to become familiar with our work environment,

goal is for our leaders to inherit Alibaba's management

values, and culture. We combine theory and practice, withphilosophy and values, grow their own capabilities, andpresentations, case studies, scenario exercises, counseling,

cultivate future-oriented leaders.

developing the technological capabilities of
Aliren. The Academy offers 1,321 courses andWe have set up a number of professional committees in

In our commitment to becoming a leading global company,

areas such as products, operations, technology, data,

we have implemented a global training system and soughtmarketing, design, risk management, and customer

to identify talented individuals worldwide. We strive toexperience, among others to establish professionalbe more global and provide professional training forstandards and guidance for employees in various

employees and managers overseas, focusing on cultural

fields. These committees help employees improve theirawareness, communication, collaboration, equality, andprofessional skills by creating advanced courses, providing

inclusiveness in multi-cultural environments.

training sessions wereconducted across the Group

enable practical and long-term growth. For
new hires, we offer systematic pathways thatinvolve courses, exams, and evaluations toimprove learning outcomes and facilitate their

Average training time
per employee:

49 hours

To make learning more convenient andflexible, we provide training in various forms
such as face-to-face sessions, online video
courses, and livestream broadcasts. In
FY2022, we conducted a total of 59,476 online
and offline training sessions, with 39,378

New learning materials added:

39,378 sets

Philanthropy

Global development

59,47644 systematic learning paths positioned todevelopment of human capital in key areas.

Professional development

A total ofCommunity

New talent development

Our Singularity Academy focuses onsets of learning materials added. A total of
1,080,816 attendances were registered, with
² Statistics refer to formal employees directly managed by Alibaba, as of the end of FY2022.

Trust

sharing best practices.

Training in FY2022

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within Alibaba.

professional certification, organizing exchanges, andemployees.

organization of supportive communities

facilitating human capital development across different functions.

feedback, and other forms of interactive learning.

to build a community of active learners among our

Consumers

participation by 95.29% of employees. The average

Employees

Each business unit also provides a variety

Environment

We hope that every Aliren can realize their potential at Alibaba and become better versions of themselves. This

from new talent and professional development, to cultivating leadership and global talent. For all employees,

Chairman's
Letter2022

Environmental, Social, and Governance Report

Supporting Our People

081
077 // 082
078

Encouraging talent mobility

We hope to provide employees with as many opportunities to create value as possible so that the company

We continue to improve our internal talent transfer system in order to fully encourage free choices andand employees can grow together. We assign a senior colleague "big sib" to every new employee to help themflows of internal talent and provide our multi-talented employees with the best opportunities to fully

integrate into the team, familiarize themselves with the business, and accompany them to grow.

develop their skills and careers. Through this system, Alibaba itself has become a job market full of

Executive
Summary

Supporting and celebrating every individual's
career at Alibaba

to transfer internally, making Alibaba itself a vibrant talent market full of diverse opportunities.³

employees can choose the "professional" or "management" track. The system allows employees to continue todevelop in their chosen career direction and helps guide them towards their desired milestones.

Environment

skilled professionals and career opportunities. In FY2022, a total of 7,077 employees took the initiative
In terms of professional choice, we have set up a dual-track system for career development, through which

Chairman's
Letter2022

We also understand that our talented employees will often find external opportunities; therefore we
maintain a protocol for handling the departure of staff in a consistent manner that protects their rights.

company, we want to set aside a special momentto celebrate them and their contributions. So, we³ The statistics for internal transfers include formal employees in thebusinesses directly managed by Alibaba.

designed career milestone "Ali-versaries," providing
customized gifts for all employees who have worked
particular, we present employees who have served
five years a specially designed ring to express our
gratitude, and in FY2022 we distributed a total of
6,496 such rings. Starting from 2021, for employees who have served for more than ten years, we provide an

Trustpleasant aroma of a year-old
bottle of wine. A year of service
will bring workers a better senseof belonging and identity, and abetter understanding of the uniquecharacteristics of the company.

employees who, like a fine wine,
are considered "mature". It is
expected that those employees havesuccessfully internalized the Alibaba
spirit into their growth and can
influence other people for the better.

given to employees celebrating along, successful career at Alibaba.
Starting from 2021, after ten yearsof service, employees have anadditional 20 days of leave to explore
and recharge themselves for thejourney ahead.

Philanthropy"One Year Aromatic" is like the"Three Years Mellow" draws ananalogy with the mellow taste often
described of a three-year-old finewine. When an employee is "mellow,"
they will clearly understand thevalues held in high esteem by thecompany and closely follow thosevalues.

"Five Years Mature" describes"Ten Years Vintage" is an honorificCommunity

1

3

5

10

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additional paid long-term service leave of 20 days, giving them time to recharge and explore.

Consumersfor one, three, five, and ten years in the company. In

Employees

We conduct exit interviews to listen to feedback and suggestions for improvement.

For Aliren who have had long tenures with theEnvironmental, Social, and Governance Report

Employee health and vitality083
079 // 084080

Supporting Our People

We care deeply about the health, well-being, comfort, and safety of our employees and their families, and work

We want to provide all employees at Alibaba with a comfortable and safe workplace to ensure their well-on many fronts to safeguard those. We make great efforts to provide employees with beautiful, comfortable,

being as they work to tackle our daily business challenges. We have established the Workspace Researchand technology-powered office environments, catering facilities with diverse choices, professional and dedicatedInstitute, which implements concepts including sustainability, human-centric design, better office-culture

medical support and physical training center, and a variety of interest clubs. We also extend our support to families

fit, and improved efficiency in our physical and digital workspaces.

after their family.

Our headquarters, Xixi Campus in Hangzhou, has a superb ecological environment that incorporates
natural elements. There are 3.2 hectares of natural water owing to a natural wetland that is a uniquefeature of the campus. To better maintain this natural ecology, we meticulously designed outdoor trails

Environmentof employees by providing them with health exams, insurance coverage, and counseling services, helping Aliren look

Executive
Summary

Creating a healthy and vibrant work environment

Chairman's
Letter2022

in the outdoor space, and created outdoor semi-open meeting and activity spaces to enhance thestandards of the WELL system, and is replete with modern office facilities including adaptive lighting,adjustable-height workstations, fresh-air circulation, and innovative space design such as "mobile
art museums," flexible spaces, post offices, and smart office facilities, therefore reducing hassle for
employees.

Consumers

Alibaba currently has 41 corporate offices in 27 countries and regions (select offices pictured below).

Employees

connection between nature and people. The Hangzhou Xixi B campus (80,000 square meters) meets the

Small
Businesses

Alibaba Xixi Campus, Hangzhou

Community

Alibaba Binjiang Campus, Hangzhou

Alibaba Center, Wangjing, Beijing
Philanthropy

Lazada One, Singapore

Trust

Munich Office, Germany

Environmental, Social, and Governance Report

We strive to support our people's physical andemotional well-being. Our gyms, sports facilities,

Responding to COVID-19

health consultation. Those are augmented by services
including psychological counseling, mental healthrelated courses, and seminars on critical matters suchas stress management, interpersonal relationships, andimmediate priority was to protect our people.
We developed a new set of digital procedures
to minimize the risk of employees catching thevirus, while at the same time aiming to minimize
disruption to their work and lives.
First, we aimed to be responsive and took stricter
measures to protect our people. We developed the

Employees

positive thinking.

When the global COVID-19 pandemic struck, ourEnvironment

and wellness centers provide employees with a fullrange of services, including exercise, relaxation, and085
081 // 086
082

Executive
Summary

Enhancing the physical andmental health of employees

Supporting Our People

Chairman's
Letter2022

internal health system "Tenzo Pass Code" to allow
the outbreak, helping us to identify potential risks.
Moreover, we provided medical supplies toConsumers

employees to report on their health status during

employees, including distributing personal
protection equipment (PPE), setting up COVID
locations, and establishing rules for the useof public facilities within our offices in order tominimize risks to our employees.

certain regions, we sent affected employees andtheir families food items and health supplies.

women and children, free health clinics (including free Chinese medicine clinics), and other activities.

Philanthropy

We also provide professional and targeted health benefits according to the needs of employees, such as care forCommunity

Lastly, when there was a shortage of supplies for

Small
Businesses

testing and vaccination stations in convenient

The company operates 24 canteens and dining halls across our campuses, with healthy and nutritious food offerings
covering a variety of cuisines. They often provide seasonal foods and special holiday meals. The campuses are fulland socialize.

Trustof fruit shops, convenience stores, milk tea shops, and coffee and dessert shops, giving employees places to meetEnvironmental, Social, and Governance Report

Supporting Our People

sports, photography, film, dance, music, basketball, board games, and drama, among others. All the initiatives
are led by individual employees in areas they are passionate about. We provide funding and support for a wide
range of team building and social activities, which are an integral part of life at Alibaba.

"510" AliDay

Executive
Summary

Our employees have founded a variety of interest clubs that we support. The existing Fun Clubs include outdoor

087
083 // 088
084

Chairman's
Letter

2022

On May 10, 2003, all Aliren were forced to stayat home due to the SARS outbreak. They braved
support from their families. May 10th then became

Alibaba Fun Clubs
Alibaba Fun Clubs are interest clubs led by employees. Our 42 Alibaba Fun Clubs together boasted over 41,000
badminton, and kendo, as well as arts societies such as photography, film, music, painting, and drama. We also
have more specialized societies such as different book clubs and game clubs. Outside of working hours, there arealways groups of people enjoying each other's company. We have programmers moonlighting as song writers,
business operators dabbling in street dancing, and designers who become champions on a basketball court.

and love, and give everyone an opportunity to cometogether, we have celebrated the day as "AliDay."
Across global campuses, the day features a seriesof activities to bring together our people and theirfamilies and friends to experience our vibrant culture
firsthand, and to express our appreciation for family
members. The highlight of the day is a group wedding
celebration in which couples who recently tied theknot can share the blessings of their special day withfamily, friends, and colleagues. On the Aliday 2021,
30,390 family members visited our campuses to join

Consumers

Bringing Aliren together for "living seriously" is what our Fun Clubs are all about.

to commemorate Aliren's dedication, unity, faith,

Employees

registered members in FY2022. Among our Fun Clubs, we have competitive sports such as basketball, football,the day we celebrate the Alibaba spirit. Since 2005,

Environment

difficulties and fought tenaciously, with tremendous

the celebrations.
Small
Businesses
Community"910" Customer Day"Customers First" is Alibaba's eternal belief nomatter how the world changes. The support of our
pursue our dreams. Starting from 2015, Alibaba has
designated September 10th, the anniversary of our
founding, as our annual Customer Day. The day wasestablished to encourage employees and partners

Philanthropy

customers gives us the strength and courage toto focus on the customer.
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Supporting Our People

the American Heart Association to educate andpeople nearby to help. We have implemented

enable our employees to better help each othera series of practical training programs. We haveas first responders, shortening the crucial period

life-saving automatic external defibrillator (AED)

between an injury and medical treatment. The firemachines installed at 81 campuses across themarshals are an integral part of our emergency

country and conduct regular first-aid drills and fire

response force, and also help with our efforts indrills. In FY2022, we held 430 fire drills and 431

disseminating emergency knowledge, organizing

first-aid drills. Our routine health trainings covered

emergency evacuations, and eliminating fire

13,567 workers.

hazards.

To equip our Aliren with the ability to effectively

As of the end of FY2022, approximately 1,100

look after the safety of themselves and others,

employees had completed training as fire marshals,

since 2018 we have trained groups of volunteers

and 1,700 had done so as first-aid responders. Our

as fire marshals and first-aid responders. For

program has resulted in Hangzhou Xixi Campus

the training of first-aid responders, we partner

being recognized as a model first-aid training sitewith Alibaba Health, the Chinese Red Cross, andby Hangzhou Municipality.

“

The health and safety of employees is our foremost concern. So we engage the'chivalrous spirit' of Aliren, combined with professional safety instruction and mutual
assistance, and encourage our employees to volunteer as fire marshals and first-aid
responders. To be able to help oneself and others is the Alibaba way.
Fei Liu, President of General Services Administration of Alibaba Group”

Consumers

The first line of defense in any emergency is having

health, and threats to public safety, ensuring the health of our employees and safe operation of our business.

Employees

safety and security system that is designed to effectively respond to natural disasters, serious accidents, dangers toEnvironment

The care and safety of our employees is our paramount concern. We have established and honed a comprehensive

Equipping employees with the safety skills
to look after each other

Executive
Summary

Ensuring systems for occupational health and safety

Chairman's
Letter2022

Small
Businesses
Community
Philanthropy
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Chairman's
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Executive
Summary
Environment

To us, sustainable consumption
consists of four dimensions:

Small
Businesses

sustainable.

Consumers

We aim to help our customers live a better digital life and make their consumption more

Employees

Enabling a
Sustainable Digital Life

∙ Diverse consumption∙ Trustworthy consumption∙ Responsible consumption

Community∙ Inclusive consumption

Philanthropy
TrustEnvironmental, Social, and Governance Reportconsumption should be and what we can do to make it possible. In this regard, the United Nation's SDGs help

Our comprehensive offering satisfies differentiated consumer demands in time-sensitivity
and value-for-money

Executive
Summary

As a leading global digital consumer platform, it is our responsibility to be clear about what sustainable093
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Enabling a Sustainable Digital Life

Chairman's
Letter2022

define sustainable consumption by balancing the enhancement of individual well-being with the need for social
responsibility. Eradicating hunger is the most basic foundation for attaining these goals, and the next level ofLess Time
Sensitive

Environment

support is enabling everyone to improve their health and well-being as they see fit. This better life requires thatpeople be able to access products and services for their diverse needs. It also entails that consumers trust their
suppliers, including with the protection of their privacy and data security. Finally, consumption must not harmthe environment and society. All of this means that consumers should be able to consume in diverse, inclusive,
trustworthy, and environmentally and socially responsible ways.

DeliveryTimewhile others are now focused on product quality, variety, and experiences.
We believe that digital technology provides unprecedented potential in delivering the goal of a more diverse,
inclusive, and responsible life for everyone.

More Time
Sensitive
Value

Positioning

Inspiring love for history through archaeological and cultural products
The archaeological discoveries of Sanxingdui in Sichuan province have amazedMuseum Day in 2021, Sanxingdui Museum opened its Tmall store with more thanaccess to variety, quality, and affordability, no matter where they live and regardless of their economic circumstances.

40 products. Nearly 100 museums and galleries now have Tmall stores, including

possible. That is why we continuously strive to meet the evolving needs of our diverse customer base, whether these
involve food, apparel, travel, entertainment, recreation, or whatever else helps them attain the better quality of life
they seek.

as the Louvre, the British Museum, and the Metropolitan Museum of Art. Thesesales not only engender appreciation for history and cultural preservation among
the public, but also financially support these institutions in their work.

Freshippo Kitchen: freshly made foods combining traditional and modern

Community

For many of Alibaba's customers, our platforms are not merely an extra convenience, but make their lifestyles

Chinese museums such as the Palace Museum, and international museums such

Small
Businesses

the world and inspired a popular fascination for archaeology. On International

For us, diverse consumption means increasing the range of possibilities for a better life. We want to give everyone

Our matrix of services

Premium

Consumers

Diverse consumption

Employees

Attaining these goals remains a daunting prospect. Some people's fulfillment of basic needs are still on the rise,

Flowered chestnuts and lemon drizzled chicken feet, seafood buckets spicedwith green Sichuan pepper, Freshippo x Huguo Temple Mung Bean Milk, and"anytime, anywhere" on our digital platforms. They can shop for a vast selection of global goods around the world

special mooncakes co-created with the National Art Museum of China represent

on Tmall Global. They can also shop for increasingly popular "China-chic" goods, niche and boutique brands, andjust a few of the cornucopia of tasty delicacies that have flowed from Freshippo

custom and hand-made goods on Taobao. In FY2022, we provided billions of SKUs to meet the diverse needs

Kitchen, which in recent years has become the leading 3R“Ready to cook, Readyof our customers. In addition, consumers can get the best deals using our platforms which source directly frommanufacturers and farms on Taobao Deals and Taocaicai. They can trade in second-hand, refurbished, and forbeverages on Ele.me.

own designs, we creatively collaborate with renowned food establishments,
talented chefs, viral beverage brands, innovative start-ups, regional specialties,
and more. To date, these offerings are available in around 30 cities across China.

Trust

rent goods on Idle Fish, purchase fresh ingredients and sundries on Freshippo, and order rapid-delivery foods andto heat, Ready to eat" brand in China. Beyond the 60% of products of Freshippo's

Philanthropy

Consumers with diverse needs and different demographic backgrounds can all shop for a variety of products

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Enabling a Sustainable Digital Life

The "anytime, anywhere" experience

Our customers' well-being relies not only on the quantity of goods available, but importantly on their quality. We

Getting the products one needs when they are needed is a critical component of a better life. This "anytime,

strive to help customers enjoy the best products at the quality they expect. This starts with offering the brands thatanywhere" experience was once only available to the affluent, but now through our technical and logistics

they want.

infrastructure, these experiences are accessible to many. We provide services including nearly instant, half-day,by brick-and-mortar retailers, a world of choice is suddenly on people's doorsteps. Ultimately, we wish formore of our users to have access to the "instant consumption experience."
We provide consumers with the leading global brands, which havesettled in large numbers on Tmall as their "second official website"
for product releases and sales. The annual Tmall 618 (June 18) sales

Alibaba platforms provide consumers with delivery choices matching their needs
Service Radius

3km

20km

Nationwide

sales strategies. In 2022, more than 200 major international brands
participated in Tmall 618, with over 300 new products selling out on

Employees

festival has become increasingly regarded as a focal point in their

Environmentsame-day, or next-day delivery options, as well as next-day pick-up services. In areas traditionally underserved

Executive
Summary

Providing high-quality products and services

Chairman's
Letter2022

the first day. Our platforms open the world to Chinese consumers who
can effortlessly experience the latest products from global brands.

Consumer

Restaurant/Retailers

Farm/Manufacturing Base

Consumers

Instant Delivery(30 min/1 hour)

Our platforms open doors for the fast-rising "China-chic" brands.
market, showcasing the quality and upward trajectory in the value
chain of Chinese businesses, a shift from simply Made in China, toHalf Day/Same Day/
Next-Day Delivery(Hybrid Fulfillment) Consumer

Stores/City Distribution Center

Created in China. Their development now gives consumers around theRegional Distribution
CenterSmall
Businesses

Products of these brands are inspired and designed in our home

world more and better choices.

Consumer

1-3 Day Delivery(Hub-and-Spoke
Fulfillment)

ConsumerPick-upCommunity

Next-Day Pick-up(Community Group
Buying)Community
Pick-up Points

City Distribution Center

Farm/Manufacturing
Base

Alibaba has been committed since our founding to championing
Philanthropy

MSMEs. On our platforms, MSMEs with their many distinctive products
can now reach consumers globally. For consumers, this is an era inwhich the niche, boutique, and varied are increasingly accessible.
Tmall Global, which bring the best of the world to Chinese consumers,has been lowering barriers for new sellers and helping overseas small
brands to flourish in the large China market.

Pick-upCainiao
Stations

City Distribution
CenterSorting Center

Distribution Centerat Merchant

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094

Alibaba Health gives users access to quick and convenient medical care

An important mission of our business is to help consumers attain the best value for their money, which isespecially crucial to those aspiring to a better life. We give full play to the advantages of digital platforms
to provide consumers with cost-effective goods and services. We identify high-quality manufacturers andsales channel for medical diagnostics and drug purchases.

assist them in planning and producing cost-effective goods with our market insights. We also continuously

In addition, the entire process of seeing a doctor or otherimprove efficiencies across a vast warehousing and fulfillment network.

medical professional, previously involving queues and waits,
is now available online, including registration, appointments,
follow-up consultations, and home delivery. Alibaba Healthalso leaned on the same integrated medical platform to serve
6.5 million people living with chronic diseases as of March 31,
to have partnered pharmacies available to all our users.

through new business models. For instance, Taobao Deals
enables manufacturers and brands to sell directly to
consumers to meet their needs for value-for-money products.
In FY2022, Taobao Deals passed the 300 million user
milestone.

Employees

2022. We are also expanding our offline services, endeavoring

We try to bring more value to more diverse consumers

Environment

Alibaba Health has created an integrated online and offline

Executive
Summary

Giving consumers better value for money

Chairman's
Letter2022

We also provide consumers with convenient money-saving functionalities. In 2021, Taobao launched thea "Price Guarantee" feature, whereby consumers may apply for a price-difference refund on certain
guaranteed goods if the price drops in the subsequent 90 days. We want to ensure a more transparent and

Lazada introduces same-day delivery services in Manila, the Philippines

equitable market for our consumers.

expected a fulfillment cycle of 3-to-5 days. Our new service greatly improved convenience for Filipino shoppers. All
manner of goods including daily sundries, health products, and even important tools can be delivered to customers in
Manila within a few hours.

Taocaicai brings quality, value, and efficiency to consumers in remote areas

regions can enjoy variety and value for many goods thatwere previously inaccessible to them. Taocaicai has built

Community

Through Taocaicai, consumers in less affluent and remote

Small
Businesses

In November 2021, Lazada Philippines formally rolled out same-day delivery in Manila. Before then, consumers generally

Consumers"Find Similar" function, allowing consumers to compare prices conveniently with similar goods. We launcheda pool of more than 700 domestic and global agricultural
direct procurement bases to offer over 1 million quality
less developed infrastructure, it builds its warehouses
to strict standards, with temperature-controlled storage
rooms to help reduce waste and guarantee the freshness

Philanthropy

products. While Taocaicai often operates in locations withand safety of goods.

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Inclusive consumptionthat no one is left behind, we pay special attention to bringing the possibility of a better consumer life to

Ensuring a rich digital life for senior citizens

underdeveloped areas, especially rural and remote areas, as well as to groups often facing digital challenges,

While China's population continues to age, we know that many senior citizens have found it more

including senior citizens, people living with disabilities, and others.

difficult to integrate fast-evolving digital tools into their lives. As a result, we continue to speciallyfeatures under our "Special Action for Aging and Barrier-free Transformation of Internet Applications." A"senior mode" on a number of our apps incorporates an enlarged display font and a special interface
for senior users, greatly improving the ease of use.

Environment

design services for our senior consumers. We maintain and evolve a set of standards for age-focused

Serving consumers in rural and remote areas

Executive
Summary

One of our central aims is to ensure the benefits of the modern digital economy are accessible to all. To ensure

Chairman's
Letter2022

In FY2022, over 70% of our new annual active consumers in China came from relatively less developed regions
logistics infrastructure we have put great effort into building, which enables us to bring modern commerceAge-friendly innovations in the Taobao app

to remote areas that often face higher transport costs, lower density, and generally poorer commercial
Taobao senior mode addresses key issues faced by older

capabilities and multi-party logistics companies are making a difference in consumers' daily lives, narrowing

users, which we call the "three struggles": the struggle

the digital gap with urban households.

to see clearly, the struggle to understand fully, and thestruggle to use effectively. We have enlarged display
fonts and made our interface easier to read. We designed
our voice assistant to cover search, logistics, reminders,

Consumers

infrastructure. By March 31, 2022, Cainiao had close to 50,000 village stations across the country. These service

Employees(e.g., third-tier cities and below, and more remote areas). This progress has relied on the small town and ruralphone bills, interactions and other scenarios, simplifying
quickly share a one-click link to enable senior mode. Furthermore, we have added a special prompt to thepayment interface to make the it easier to use and help senior users encountering difficulties in completing
The village of Yangla in Yunnan Province is surrounded bytheir purchases. We even added a feature to allow a family member to pay for them.

Small
Businesses

Cainiao Post station breathes new life to the mountain village of Yangla

the text-input process for this older cohort. Moreover, we have made it possible for family and friends tothe snow-capped Hengduan Mountains. After the young
he thought about the long trek residents in his hometown
had to make to pick up mail. That encouraged Lurong toreturn home to establish a Cainiao Post station. Each day
he makes a round trip of over 100 kilometers to retrieve

Amap's WeCare plan for helping the elderly
In cooperation with the National Office on Aging, our Amap

Community

Peichu Lurong had lived some time outside the region,

online navigation tool carried out the WeCare Plan for
Helping the Elderly. Projects included R&D for specialized"It's difficult to travel along this winding, snow-covered road, so the delivery center that I manage is the only

encourage seniors to seek medical care, the construction

regular link between the villagers and the outside world. If I were not here, the villagers would be cut off. I'mof nationwide WeCare taxi assistance stations, anddoing something that really fulfills a pressing need of theirs," he said. The presence of the station has significantly

community awareness campaigns for helping seniors. By

improved the quality of life of the villagers, with newfound online shopping becoming popular, giving themMarch 31, 2022, over 1,200 WeCare stations has been built

access to a better life.

in 9 cities across the country, with over 1,000 additional

taxi functions for seniors, the issuance of subsidies to

Trust

WeCare stations planned or under construction.

Philanthropy

packages for the 500 inhabitants of his village.

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Executive
Summary

Enabling barrier-free digital consumption
Because technology is all too often designed without taking them into account, the 85 million people living withdisabilities in China frequently miss out on the benefits of digital life.¹ We work hard to understand the needs ofBarrier-free online theater for visually impaired users

We established the Taobao Information Accessibility Lab back in 2011, and since then we have built a

In December 2020, our Youku video hosting platform and the China Braille Library cooperated to launchprioritize feedback on user interface (UI) obstacles, and regularly invite our target user base to share their

the first online audio-visual platform for barrier-free services in the industry, and officially launcheda "Barrier-free Theater." On International Day for People with Disabilities, we released the barrier-freeactual experiences and needs.

edition of Youku app with film and television content, especially for short videos. After the version was

A range of our products are continuously optimizing their accessible UI. At present, Taobao's app fully supports

interface and select their favorite film and television works through voice commands.

use by visually impaired users, including text and picture-to-voice functions. In FY2022, Taobao served 305,000

Through collecting extensive feedback from visually impaired users on their pain points with technology,

Environment

this group and create digital products and services that are optimized for accessibility.

systematic product monitoring and improvement mechanism for ensuring a barrier-free user experience. We

Chairman's
Letter2022

launched, visually impaired users could use screen reading software to read the information on ourwe optimized the video player interaction, providing a much improved accessible viewing experience. In
FY2022, nearly 1.5 million viewers watched movies on Youku Barrier-free Theater.

Employees

visually-impaired users.

Consumers
Small
Businesses
Community

Barrier-free travel
To give people with mobility disabilities easier access totravel and transit, Amap launched the accessibility routing
and facility labeling function on its maps in 2017. It works

Barrier-free food ordering and payments

maps, and automatically plotting accessible routes for theuser with one click. Amap is also the first company in China
to develop a "visually impaired mode," making it easier forthe visually impaired them to understand real-time road

Regular Mode

information.

Visually Impaired
Mode

Accessible
bathrooms

Accessible
elevators

Ele.me and Tmall Genie collaborated to enable visually impaired people to order food directly with
their voice using the Tmall Genie smart speaker assistant, which includes support for different dialects.
In addition, Tmall Genie also supports voiceprint verified payment to allow safe and reliable ease of

Trust

payment for users with disabilities.
¹ Source: Outline for Protection and Development of Disabled People during China's 14th Five-Year Plan.

Philanthropy

by displaying accessible elevators on subway station

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Trustworthy consumption
can have confidence in three areas: product quality and safety, user privacy and data security protection, andresponsive service.

tackle the challenge of counterfeit goods by combining the inherent knowledge of brand owners, ourintelligent technology, as well as law enforcement and civil legal channels. As of March 2022, morethan 1,100 brands from 21 countries have joined the AACA. The alliance not only addresses Alibaba's
retail ecosystem and merchants, but also disseminates information and tools to help them protect

We take seriously our role as the gatekeeper for consumers on our platforms, and we strive to establish clear

their rights, and raises public awareness of the importance of protecting the intellectual property ofand enforced rules, while developing and using the latest technology to support this role. We have establishedoriginal brands and designs. When infringing stores are spotted in the offline world such as shoppinga digital quality-assurance mechanism and have taken measures to govern it.

malls, Alibaba's reporting system allows consumers to provide rights holders in the AACA with leads forEnvironment

Improving product quality and safety

In January 2017, we established the Alibaba Anti-Counterfeiting Alliance (AACA) to work collectively to

Executive
Summary

Enjoying trustworthy consumption is an essential part of a better digital life. We strive to ensure our consumers

Chairman's
Letter2022

enforcement.
For example, Tmall carries out strict management of merchant platform entry, advertising and quality,
appropriate for each of our diverse services.
Our quality assurance is underpinned by a full, closed-loop management pathway that introduces advanced
technologies such as AI identification and blockchain traceability technology to track and promote quality,interest organizations, and others, and share our product quality monitoring and management technology tocombat counterfeit and shoddy goods.

Counterfeiting not only hurts rights holders, it also harms consumers and erodes their trust. In January
2020, we officially launched the "Consumer Reporting Platform", unifying our online and offline anticounterfeiting cooperation network and technological capabilities. With support from market supervisionbureaus, public safety authorities, and judicial agencies, our system uses digital technology to enableconsumers to work in tandem with brands to protect their rights. When consumers notice infringing storesConsumers

transparency, and reliability. We also actively collaborate with consumer groups, regulatory agencies, public-"Consumer Reporting System" protecting consumers from IP infringement

Employees

inspection and sampling, and so on. We carefully craft and maintain quality control processes that arein physical environments, they can access the "Consumer Reporting System" on Taobao and upload

Digital authenticity system assures consumers through collaborative solution
To improve product reliability for consumers, we havecross-reference before sending the information to the brand owners for enforcement action.

Small
Businesses

pictures of the infringements, the location of the seller, and other information. We then use technology toestablished the Tmall Global Quality Partner Alliance,
and inspection institutions. We have formulated 25
different international quality standards and covered
100% of imported products listed on Tmall Global,

Community

gathering 91 international and Chinese third-party testing

protecting the interests of sellers and providing assurance
to consumers. Since 2017, we have been running thebig data technology, it tracks information of the supply
chain and links of imported products, including details on
production, packaging, transportation, customs declarations, third-party testing, retail sales, and so on. A Tmall

Philanthropy

Global Traceability Project. By leveraging blockchain and

Global Traceability QR Code has been labeled on every piece of product that joined the Project, so that consumers
have easy access to the information of the imported products, thus consuming with greater confidence.
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Protecting the privacy of consumers is the basis for trustworthy consumption. However, maintaining privacy
is not just about locking away data. Merchants must understand their customers well enough to ensure that
personalized and quality services can be provided.

Executive
Summary

Protecting user privacy and data security
Privacy Code Protection service
We have developed features and mechanisms on our platforms to ensure that users can protect their personalprivacy during the whole process of ordering, payments, and fulfillment. We only transmit data absolutely

We deeply ingrain the concept of privacy protection and data security into our practices, making full use ofprivacy technology to achieve data sharing in a trusted environment. To this end, we have formulated threevirtual phone number throughout the whole purchase and fulfillment process. Our Amap and Ele.me apps havealso introduced free Privacy Code Protection services, allowing complete assurance throughout the process. By
August 15, 2022, our virtual phone number feature has covered over 500 million active consumers on Taobao.

Environment

necessary for fulfillment. In 2022, Taobao introduced its Privacy Code Protection service, allowing users to use a

Three principles of consumer privacy protection

Chairman's
Letter2022

guiding principles that we strive to follow: minimal data collection, maximum user awareness and choices, andEmployees

the strongest user data protection in our products and services.
Settings

Make users aware of the scope of data collection and its intended uses through clear
prompts, pop-ups, and forms.
Once data is collected, strictly protect users' basic rights in areas such as access, inquiry,
withdrawal, modification, or deletion.
Develop a range of privacy services and improve privacy management functions,
including a privacy-policy inquiry portal, privacy over one's friends, and data consent

Ele.me phone number protection
Turning this on will use virtual
numbers with merchants and riders.

Consumers

Minimal datacollection

Privacy

management and withdrawal.

management system that is transparent to supervision, and can fulfill our legal
obligations; and 2) build an algorithm operations mechanism that is transparent and12interpretable, ensuring the user's right to know.
Opt-out option: Provide users with the option to easily opt out of personalized

Community

Maximum userawareness andchoices

Virtual phone number
function on Ele.me

Small
Businesses

Ensure the user's right to know how their data is used: 1) establish an algorithm

recommendations. For example, Taobao has the option to turn off recommendations
based on personal data.
Optimize our recommendations: Establish a feedback mechanism for users to ensurethat they have the right to offer their opinions on the results of algorithmic decisions.

Recommendations

Manage personalizedrecommendations functions.

Personalized recommendation

We keep improving our systems to ensure strong protection of user data in our products.
In early 2022, we adopted "virtual phone number" functions for consumer privacy
protection in major apps such as Taobao, Amap, and Ele.me. Merchants and service

Philanthropy

providers contact consumers without knowing their real numbers. On the Taobao app
alone, this new function has already covered more than 500 million active consumers.

3

4

Users can easily turn personalized recommendations
on or off (Taobao app shown here)

Trust

Strongestuser dataprotection in
our products
and services

Turning this off will disable personalizedrecommendations for the user.

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Enabling a Sustainable Digital Life

Chairman's
Letter2022

Communication issues with customer service is a pain point for many customers. Therefore, we seek to provide

Ultimately, the best customer service is when no customer service is needed, and as such we try hardaccessible, timely, and empathetic customer service, resolving the concern of consumers when ordering.

to prevent issues. Our "New Beacon" user feedback platform collates information on orders, including

Executive
Summary

Improving the customer service experience
product quality, delivery service, and after-sale care. This not only helps consumers make betterpurchasing decisions, but allows sellers to get feedback to improve their products and services.

Environment

In 2003, we established our Customer Experience Improvement Center, and have continually trained a team of
dedicated staff with the goal of resolving customer problems. We adhere to two tenets: first, we make it as easy as
possible for users to contact us, and then we focus on resolving their issues as expeditiously as possible.
Our technology-powered methods include a customer service hotline, live online chat rooms, and automated service
bots available at the click of a button. Users can easily access customer service portals in all of our apps to request

Employees

the platform's intervention should any issues arise. We were also among the first in China to launch services such as
our 7-day "no questions asked" returns and speedy refunds for customers. In FY2022, more than 900 million orders
were refunded, covered by our speedy refund system.
We also streamlined our resolution process. In May 2021, we launched a new complaint handling protocol thatfirst place by constantly looking for ways to improve product quality, fulfillment, and services. In FY2022, Taobao andTmall's complaint rate represented just 0.015% of total orders, with a complaint response rate of 100%.

-day

No questions asked
returns

0.015%

Taobao & Tmall
complaint rate

100%

Complaint response
rate

Consumers

empowers our staff to solve user issues proactively. Meanwhile, we strive to prevent the occurrence of issues in the

7

Small
Businesses
Community
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Responsible consumption

Chairman's
Letter2022

Executive
Summary

Responsible consumption means helping consumers achieve better lives while limiting and reducing harmful socialand environmental impacts. This covers a wide range of environmentally and socially beneficial consumer practices
that we are supporting.

consumer perceptions and behaviors in multiple arenas. While we promote the adoption of low-carbon lifestyles
on the consumer side (refer to Chapter 1, Section 2, Sub-section: Scope 3+ actions), we also stimulate the supply ofgreen goods and discourage environmentally harmful goods.

Environment

We endeavor to advocate for greater environmental awareness, using our platform to influence and change

We also encourage shipping box recycling to increase
the lifespan of the packaging. An important channelof participation is through Cainiao's box recycling
program which operates convenient box drop-off sites
at a number of local Cainiao stations. We worked with
our million-strong merchant partners to offer rewards

An increasing number of consumers are prioritizing responsible consumption, especially by choosing green products.

cities in 31 provincial administrative regions.

Employees

Fostering responsible consumption

for box recycling. The program currently covers 315

As such, we are working to promote these sustainably-sourced goods on our platforms, such as energy-saving
home appliances, recycled and biodegradable materials, and organic foods.

of our products, in order to promote the green behavior of hundreds of millions of consumers. We will further
encourage consumers to practice green consumption behavior by designing green incentives, and continuously

At Intime Department Stores, we have

expanding the green consumer community.

Consumers

Through a variety of offline and online channels, we are also helping to popularize green packaging and recycling

been replacing taped delivery boxes with
2022 World Earth Day, Intime set up clothes

consumption. At Alibaba, we have both an obligation and capacity to help forestall this trend. By adopting green

recycling bins in its stores and distributed

packaging, we stimulate a series of positive effects, of which carbon reduction is only one dimension, and which

Small
Businesses

the choice of re-usable zipper bags. On

The rapid increase in the use of packaging, especially plastics, has been an unfortunate by-product of growing

flowers and coupons to customers who

includes knock-on effects like the reduction of plastic pollution.

recycled their used clothes.
Community

We strive to make green and simple packaging options more
visible. During our 11.11 Global Shopping Festival in 2021, in
Taobao's "Green Mall" section, we featured goods with green
packaging (non-tape zipper boxes, degradable packaging,other products. If such products are shipped through Cainiao
Warehouse, Cainiao will mark their fulfillment details witha "green package" tag. During the 6.18 Shopping Festival in 2022, Taobao, Tmall, and nearly 40 brands
collectively advocated for simpler packaging that reduces use of plastic, printing ink, and other packaging
materials. Participating brands have integrated both simplicity and environmental awareness into using

launched a campaign to encourage consumers
to recycle and reuse plastic bottles at recyclingmachines by rewarding them with "green energy"
points. Plastic recycling machines have been
installed at more than 170 Tmall offline stores
across the country by July 2022.

Trustinnovative designs to simplify and reduce packaging.

In November 2021, Alibaba and Unilever jointly

Philanthropy

and shipping in original boxes), including beauty, food, andEnvironmental, Social, and Governance Report

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Chairman's
Letter2022

Executive
Summary

Lazada's promotion of responsible consumption in Southeast Asia

Junfang Zheng, Chief Risk Officer of Alibaba GroupSoutheast Asia, collaborating with partner brands to makeenvironment-friendly products easy to access and recognize.
These include "green" fashion brands and goods that reduce
plastic in manufacturing, packaging, and transportation
processes. Lazada aims to encourage more consumers to makeof daily necessities. Lazada and Unilever also jointly launcheda three-year sustainable development strategic collaboration,"Easy Green," to promote sustainable products. We have begun
experimenting with "Easy Green" labels, focusing on environmentally-friendly products that are biodegradable,

jointly introduce the "Life is Precious" project, focused on noticing early warning signs of psychologicalcrisis among users. When sellers are alerted to a risk, such as through a customer searching or asking
about self-harm implements, they act as the first line of defense by immediately responding with
dissuasion and words of comfort while also contacting trained professionals in Alibaba Safety's suicide
prevention team. In the case of a severe emergency, Alibaba will also contact local first responders so thatthey can intervene and help. Through March 31, 2022, over 4,400 people who have shown signs of distresshave received such intervention on our platforms. Beyond that, more than 34,000 people have called the
hotline on the project page for psychological counseling.

Building the world's leading circular goods market

As an e-commerce platform, we also have a special obligation to ensure our platforms are not used for trade that

Through our re-commerce platform Idle Fish, we strive to create the world's largest market for second-harms our planet and society.

hand goods, and further Alibaba's role in supporting a more circular economy. To date, Idle Fish has over
300 million users, of whom 50% are young "post-1990s" Gen-Z consumers who are steering future trends.

In 2020, we worked with partners to launch the GreenNet Program for responsible consumption. This works by

These users buy and sell "idle" goods, which are frequently custom-made, niche, and of high-quality.

redirecting searches for certain products - such as banned wildlife products - to webpages from the GreenNet

Every transaction guarantees a reduction in the consumption of new resources.
Idle Fish has introduced innovative solutions for many issues faced by re-commerce markets including

can increase consumer awareness and not only phase these products out of our platforms, but from the rest

item standardization, quality control, and dispute resolution. The platform has transformed second-handof society. With some products, we also provide recommendations for responsible alternatives. We have also

trading into a more viable option through a number of creative features. These include linking to otherintegrated a reporting system into our platform to allow users to flag environmentally harmful products that are

e-commerce platforms such as Taobao and Tmall to offer seamless traceability and information for goods

being sold under false pretenses.

purchased there, quality inspection and appraisal services, a credit system for users and a team dedicatedto addressing fraud. A key addition has been the creation of a virtual small-claims court mechanism

We have also worked hard to combat the sale of harmful and violent products and to protect younger andto resolve disputes and bolster reliability through a form of co-governance which enables users tovulnerable users from risks such as fraud, explicit materials, online bullying and abuse, and other risks to their

participate in dispute resolution processes as peer "jurors." These innovations are critical to the successful

health and well-being. As of June 30, 2022, the GreenNet program has so far displayed information on the risks ofdevelopment of second-hand markets.

Philanthropy

styrofoam containers leads to information on environmental damage from these products. In this manner, weCommunity

Program. For example, a search for ivory will lead to articles on elephant conservation, while a search for

Small
Businesses

Keeping platform users safe from harm

Consumers

renewable, and packaged in "optimized, reduced, or no plastic" ways.

We also take seriously the potential for facilitation of self-harm. In July 2019, several teams at Alibaba
Employees

responsible consumption choices, especially in the purchase

Environment

In April 2022, Lazada launched its LazEarth campaign in

We hope to transform harmful searches into a public educational project that all
sectors of society can participate in and make positive contributions to together.

harmful products and content to users more than 70 million times, including information on products damaging
Trustthe environment and health.

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110
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Fueling Small Businesses

Chairman's
Letter2022

Executive
Summary
Environment

become more competitive and generate scalable and inclusive employment. We believe∙ Developing responsible technologies∙ Building digital business capabilities and markets
for MSMEs∙ Enabling inclusive employment

which "no one will be left behind."∙ Promoting responsible production

Communitythat high-quality digital transformation and development should lead to a world in

Small
Small
Businesses
Businesses

across our ecosystem, in particular micro, small, and medium enterprises (MSMEs), to

To achieve such goals, Alibaba helps by:

Consumers

As a technology-driven platform company, we commit to empowering businesses

Employees

Fueling Small
Businesses

Philanthropy
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Fueling Small Businesses

Developing responsible technologies

Responsible technology should be green, and we strive to be the green leader in cloud technology ininnovation. In FY2022, we spent over RMB120 billion on technology-related expenditures. For this innovation to

China. To achieve this, we will continue to improve the energy efficiency of our hardware, increase theserve the social good, the technologies themselves must be responsible, which means having high standards ofuse of clean energy, expand the recycling of waste heat and hardware, and continue to innovate. For

being efficient, environmentally friendly, cutting-edge, inclusive, and open. Here we focus on Alibaba Cloud tomore information, please refer to Section 1 of Chapter 1, "Greening our operations and value chain."highlight our positioning on responsible technology.

Aside from improving our own operations, we have also leveraged the cloud to create intelligent tools
to help our business ecosystem achieve a green transition. This includes our "Energy Expert," whichhelps organizations monitor and reduce their energy use. For more information, please refer to Section
2 of Chapter 1, "Amplifying decarbonization through our platform ecosystem."Green

Cutting-edge

Leading purchaser of renewableenergy among Chinese technology
firms

Inclusion

Responsible
technology

Openness
We have been long recognized
as the leading Chinesecompany in open-source
activity and impact.

Maintaining our leadership in core technologies is essential to achieving all our goals. What makes
this possible is our people working on the cutting-edge of many foundational technologies. Alibaba
currently holds more than 13,000 global patents, with 10,000 in key fields that include cloud computing,artificial intelligence, data technology, and other areas of intense research.

Inclusive technologies
At Alibaba, we strive to make it easy for anyone to start a new business using our cloud and other platforms.
More than ten million MSMEs in our platform ecosystem, such as our merchants, use cloud computing tooperate their businesses. Besides that, more than four million customers use Alibaba Cloud services globally.
In China, one measure of our success is that among the nationally recognized "little giants," - small, leading
innovative firms across varied sectors - 65% were using Alibaba Cloud, and 50% of them were using our

Small
Businesses

In the 2021 Gartner Solution
Scorecard for integrated IaaS andPaaS, Alibaba Cloud received
the highest scores in the four
core evaluations of computing,storage, network, and security(required), separately

Serve over 4 million cloud
clients worldwide
Facilitate operations for around
10 million MSMEs

Technological advances

Consumers

Efficiency

Alibaba had 13,000+ global
patents as of the end of FY2022

Employees

Average PUE 1.247 in FY2022,
an Asia-leading standard

Environment

For Alibaba to best fulfill our social responsibilities, we must lean on our core strengths in technological

Executive
Summary

Green technologies

Chairman's
Letter2022

smart office platform DingTalk, as of the end of FY2022.

Feitian program for schools

Support program for MSMEs
developing on the cloud

In 2021, we initiated the"Welcome to the Cloud" programfor MSMEs, and have helped
them in finding office spaces,
deploying and using technology,
and hiring talent.

We launched the "Feitian
Acceleration Program" in 2020,and expanded it in 2021 to provide
an equivalent of RMB1.5 billion infree cloud resources over three
years. By the end of FY2022, we
had provided 640 million hours ofcomputing resources to over 2,200
universities, benefiting 100,000
students and faculty.

Since April 2020, for MSMEs
with R&D teams of fewer than
30 staff, we provide free or
discounted cloud services, andlow-code supporting packages
to help them use and customize
cloud software efficiently andsecurely.

The 21st century is the century of digitalization. Fully harvesting the digital dividends for everyone relies
critically on driving computing performance higher while using fewer resources such as energy.
As companies move to the cloud, they see major performance and efficiency gains, and reduced reliance on
resources, with benefits to themselves and to the environment. Alibaba Cloud is a recognized global leader incloud services. In the 2021 Gartner Solution Scorecard for integrated IaaS and PaaS, Alibaba Cloud received thehighest scores in the four core evaluations of computing, storage, network, and security (required), separately.

Philanthropy

MSME cloud
onboarding initiative

Community

High-performance technologies

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120

Alibaba has been a firm believer in open ecosystems in technology and is an active participant in open-source
projects. Alibaba was ranked first for many years in open-source activity and influence among Chinese enterprises.
We also received the most awards in the 2021 "Science and Technology Innovation China" Open Source List,

Environment

launched by the China Association for Science and Technology. InfoQ ranked Alibaba first in their top 10 list of

To foster a culture that values basic science research, Alibaba sponsors activities aimed at stimulating
more widespread public interest, improving math and science literacy, and recognizing and nurturing
scientific achievement.

Executive
Summary

Fostering an open community for innovation

Chairman's
Letter2022

enterprise contributions in their latest report, China Open Source Development Research and Analysis 2022. In theirlist of the top 30 open-source projects, Alibaba alone accounted for 11 projects.
So far, more than 30,000 developers globally have participated in Alibaba-initiated open-source projects. These
projects have garnered more than 1 million stars on GitHub and are utilized by companies around the world.

DAMO Academy Young Fellows

Foundation, Linux Foundation, CNCF Foundation, Apache Software Foundation, and Open Container Organization

The DAMO Academy Young Fellowship rewards researchers under the age of 35 for their achievements(OCI), among others. We are supporters of and maintainers of well-established projects such as Linux, MySQL, Redis,in basic research and applied sciences, including many interdisciplinary sciences. In addition to cash

JVM, Kubernetes, containerd, Apache Flink, and Envoy.

prizes, winners receive ongoing support from DAMO
Academy and Alibaba R&D institutions around thesoftware and focusing on four major areas: operating systems, databases, big data analytics, and cloud-nativetechnologies. We particularly see cloud technologies as critical to the future of the open-source ecosystem. We willcontinue our efforts in open-source research, development, and community building, and seek to work with industry
peers and community members to make more open-source software available for the benefit of all.

OpenAnolis, established in September 2020, is an open-source operating system (OS) community and innovation
to promote the development of software, hardware, and their applications. By July 2022, Anolis OS had over one
million installations. Alibaba Cloud provides network and other resources for the OpenAnolis community such as
our own optimized cloud version along with ten years of free long-term technical support.

specialized engineering teams help young scholars
channel their initial insights into practical research
projects. The Fellowship has become an influential
and respected national science award.

Alibaba Global Mathematics Competition
The Fourth Alibaba Global Mathematics Competition was held in 2022 to promote public interest inmathematics. With minimal entry requirements to garner broad participation, it has attracted over 50,000
participants over the past three sessions.

Community

platform. The community brings together cloud operators, telecom firms, and chip companies, among others,

world, as well as data and computing power. Our

Small
Businesses

OpenAnolis OS: open-source innovation community for the cloudThe 2021 DAMO Academy Young Fellows
Consumers

In 2021, we upgraded our open-source strategy, centering on jointly advancing open-source projects for foundational

Employees

Alibaba is also deeply involved in the leading open-source foundations and organizations, including the Open Atom

Philanthropy
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Fueling Small Businesses

The UN Sustainable Development Goals see innovation, infrastructure, and industrial development as inextricably
linked. Together with our ecosystem partners, we have long been committed to building essential businesspossible and "makes it easy to do business anywhere."
Alibaba equips small businesses and their entrepreneurs with many capabilities and market opportunities previously
reserved for large corporations, allowing them to successfully compete while maintaining their nimbleness andinnovative drive. We continue to build platforms that link MSMEs with various markets and consumers. At the samebranding, product sourcing, sales, marketing, distribution channels, manufacturing support, customer services,finance, logistics supply chain, organizational management, and information technology.
In this section, we first cover the impact of our digital intelligent business solutions in several dimensions including
and learning. Then we illustrate our efforts in connecting MSMEs with market opportunities.

To further simplify operations for small business owners, besides Tobao's service marketplace, we offer
Qianniu as a one-stop management platform for our merchants with a full suite of e-commerce businesstools, including goods management, order management, marketing, CRM, cash management, logistics, online
operations, business consultation, and data analysis. Users need only a mobile phone to access all the tools
anytime, anywhere. In FY2022, more than nine million active merchants on our platforms used Qianniu tomanage their stores.

Taobao's service marketplace helps the start-up of businesses
StoresPeopleA digital "business operating system" for MSMEs

Marketing

Products

Accounting

Data

Merchantsdeero r t u n it i e s

Satisfy dem
and
, cr
ea
te

su m

Co n

o pp

Community

Alibaba service marketplace

e ss

Mar
ket
Su
pp
ly

s in

MarketingDistribution
Channels

Logistics

bu

Product
Sourcing

ces
rien
pe
ex

CRM

Tools
and
ces
rvi
Se
of

Branding

w
ne

os
y

em

Content

Ec

Orders

st

m

a

ERP

Small
Businesses

Customer ServicendConsumers

starting up, decision support, work collaboration, logistics, financing, intellectual property protection, and training

Alibaba seeks to level the playing field for smaller companies by arming them with corporate management
tools that are enterprise-class yet easy to use and manage. Our Taobao service marketplace is a market for
digital and intelligent solutions from Alibaba and other solutions providers offering software, content, andsupply chain management, among others. By establishing an active third-party ecosystem, we aim to lower
the threshold and ease many obstacles for the start-up and digital operations of small businesses.

Employees

time, MSMEs using our cloud-based tools can gain access to a host of digital intelligent business solutions, including

Digital startup and operations

Environment

capacities and dynamic markets, which we call a "business operating system," that supports as many enterprises as

Building digital business capabilities for MSMEs

Executive
Summary

Building digital business capabilities
and markets for MSMEs

Chairman's
Letter

2022

Sales

Information
Technology

Customer
Services

Finance

Logistics
Supply Chain

Organizational
Management

Consumers

Servicers

Philanthropy

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Alibaba's Business Advisor, first launched in 2014, is our e-commerce analytics suite to help merchants gain
insights about their business and thus improve their decisions. Aside from providing analysis of the business,market dynamics, and competition, Business Advisor also features online coaching and training. Currently,
approximately 90% of our merchants with monthly sales over RMB300,000 are users of Business Advisor.

("antelope"), that integrates Alibaba's ten years of experience across our businesses to provide small
businesses with a matrix of intelligence tools that support business analysis, customer service, data
management, and inventory management, among others. These tools help users unlock the growth potentialof their data.

"Yaoyao YoGa," a merchant on the platform

Smart work collaboration”

Environment

This year, we established a dedicated DaaS ("data intelligence as a service") company, Alibaba Lingyang“

I am very grateful to Alibaba for providing us with these digital tools, which
reduces the cost of running a store and gives us the confidence to run it
well... Right now, I feel like I'm riding an express train, and our overall
performance is at least 20% better than previously.

Executive
Summary

Smart decision-making

Chairman's
Letter2022

DingTalk is our digital office communications and application development suite that offers new ways ofworking, sharing, and collaborating. It now serves users from more than 21 million organizations and 500
digitize office operations such as team management, projects, meetings, calendars, financials, inventories,
and documents. For small businesses with limited internal IT capabilities, we have developed low-code oreven no-code products and services.

Employees

million users across the world. DingTalk and its ecosystem of tools have been helping these organizations

In June 2021, DingTalk launched more than 20 free software suites that provide easy-to-use digital

Small businesses have often been less able to withstand shocks, notably during the COVID-19 pandemic. We havetaken a series of measures to help the MSMEs on our platforms, including subsidies, fee waivers, traffic support, andprograms to aid logistics and financing. In FY2022, we implemented a number of measures, including subsidies,

200,000 new merchants on Taobao andStarting up

Traffic Greenhouse: A plan to support

Financingnew MSME merchants in gaining exposure

Payments

reduced from 1% to 0.6% for Taobao andTmall merchants.

more than 160 countries and regions with its multimodal transport solutions.
We continuously work to optimize the convenience of our services with digital technology. For example, ourmillion merchants on Tmall/Taobao.

digital supply chain management system and digitally powered distribution facilities have reduced inventory

Shipping fees: household appliancerequirements and improved turnover, while our innovations in unmanned vehicles have also been widely

fulfillment costs were reduced, someby over 10%.

adopted. In March 2022, Alibaba was one of six finalists in the Franz Edelman Award for Achievement in
Operations Research and the Management Sciences, recognizing our contributions to the optimization

Philanthropy

Logistics

continuously works to reduce costs and improve logistics efficiency for our customers, which especiallydirect distribution service covers more than 2,800 districts and counties. Meanwhile, Cainiao Global reaches

decreased by 12%, benefiting 7.2

merchants broadcast throughWe have established a cost-effective logistic network that provides diversified logistics services andbenefits MSMEs. In China, Cainiao maintains more than 10 million square meters of warehouse space, and its

to Mar '22, average premiums

2021 for 2.85 million merchants.
Commissions were waived whenbusinesses regardless of size.

Interest waived for prepayment

Freight insurance: From June '21

Business Advisor free since May

for Huabei and credit cards have been

Smart logistics and supply chainsloans and loans on inventory.
during certain periods.

Operations

Since August 2021, the transaction fees

operating after the pandemic began.

Community

Interest rate cuts for both credit

University.

their accounts.

its merchant security deposits from a
flexibility.

Free training is provided by Taobao

2021 for 1.8 million merchants.

Since July 2021, Taobao has changed
fixed to a floating quota to allow for

to customers.

Marketing tools free since Julyaround 70% of DingTalk business users are MSMEs. We made particular efforts to help these businesses keep

Since 2014, Cainiao has offered fully digitized batch order processing that offered a leap in capabilities for

Subsidies for new merchants: nearly
Tmall were granted subsidies.

management, and so forth, and introduced low-code support for adding user-defined functions. Today,

Small
Businesses

which covered roughly 9 million merchants on our Taobao and Tmall platforms.

solutions for cost reduction and efficiency increases. These covered recruitment, employee training, projectConsumers

Fee reductions and subsidies to help MSMEs weather COVID-19 disruptionsof supply chain management and operations planning – based on integrated forecasting, inventory, andcompetition’s finals for two consecutive years, and the only Chinese company among the finalists this year.

Trust

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MSMEs often lack collateral or traditional credit history, which can make obtaining traditional financing an
insurmountable challenge. Our ecosystem financing partner uses big data to solve this impediment, assessing credit
risk quickly to provide convenient unsecured loans for small businesses.

Xushun Fu, Legal Director of Yatsen Holding Limited

We protect business innovation with our technology

A secure environment for intellectual property rights (IPR) development is key to promoting innovation. Alibaba
established an intellectual property rights protection system as early as 2002. Through extensive stakeholder
cooperation over the past 20 years, we have built this system into a comprehensive framework. It covers a breadth

Alibaba innovates and finds new applications for our technologies, such as "IPR Protection Tech Brain,"
AI Virtual Model, AI tool for trademark generation, digital copyright protection, and invisible video
watermarking.

EnvironmentIntellectual property protection

Alibaba helped us a lot with online and offline rights protection, which is of
special significance for the rapid development of MSMEs.

Executive
Summary

Smart financing

Chairman's
Letter2022

of protection: from trademarks to many other rights, both online and offline enforcement, supporting large global
originality.

We are continuously improving our IP protection framework
Alibaba is committed to continuously optimizing our sophisticated notice-and-takedown system, the Alibaba
encountered by the vast number of rights holders who work with us. As of March 31, 2022, more than 660,000 IP
rights worldwide were protected on the IPP, through over 590,000 accounts. Ensuring the effectiveness of the IPP,
98% of takedown requests are acted upon within 24 hours.
In 2020, Alibaba launched the "Simp'Ali" online rights protection program for MSMEs around the world. Simp’Ali
protection, and further strengthening the accessibility of the IPP for those companies with less experience inonline reporting.
Alibaba also carries out proactive monitoring across our platforms through our "IPR Protection Tech Brain," withtechnology that identifies and removes suspected infringing and other potentially problematic products. We

Simp'Ali
online rights protection
program

We work with various industry associations such as the International Anti-Counterfeiting Coalition (IACC),
European Federation of Pharmaceutical Industries and Associations (EFPIA), China–Britain Business Council(CBBC), Korea Trade-Investment Promotion Agency (KOTRA), and the Japanese Intellectual Property Group(IPG) in China. Together, these collaborations and industry forums create new models to promote a healthyinternational e-commerce business environment.

Alibaba's AI-powered IPR Protection Tech Brain is a great initiative. It is alsoa leading technology in the industry, and is more effective than traditional
methods. Authorities should support AI anti-counterfeiting methods, as they
will bolster the industry.
Guangnan Ni, Member of the Chinese Academy of Engineering

Trust

IPR Protection Tech Brain
AI-powered monitoring
across platforms

Philanthropy

The IPP
notice-and-takedown
system

We worked with businesses to establish the world's first e-commerce anti-counterfeiting alliance, theAlibaba Anti-Counterfeiting Alliance (AACA). The alliance provides a multi-party governance structure toaddress the problems of counterfeits and infringements, and has established extensive industry influence.
As of March 2022, the AACA included more than 1,100 brands from 21 countries.

Community

continuously upgrade this technology, in collaboration with rights holders.

We cooperate with a series of domestic and foreign agencies and industry associations to provide onestop intellectual property protection for products bearing geographical indications. By March 31, 2022, a
total of 170 geographical indication certification marks were being protected.

Small
Businesses

simplifies the takedown request procedures for participants in the program, thus improving the efficiency of rights

Alibaba assists law enforcement agencies and rights holders to crack down on counterfeiters andcounterfeit goods using intelligent algorithms. In FY2022, Alibaba assisted authorities to carry out offline
enforcement, and assisted in the investigation and resolution of 2,802 counterfeiting cases, with a total
estimated case value of RMB3.557 billion.

Consumers

Intellectual Property Protection Platform ("the IPP"). We enable protection across a wide range of scenarios

We work in collaboration to tackle IP violations

Employees

brands and MSMEs, and combating counterfeiting while developing systems that encourage innovation andEnvironmental, Social, and Governance Report

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Helping Xiangshan's local citrus industry protect their "red beauties"

We want to help MSMEs grow themselves through digital training and data analysis tools. Taobao Education
provides online and offline training sessions, which have gathered more than 100 million attendances

From 2020, Alibaba Digital County and the Xiangshan local

since 2016. People participating in the training include aspirational learners: business owners, e-commerce

government worked together to build up online sales andplayers, livestreaming anchors, and students, among others.

we upgraded the collaboration to help promote the brands"Xiangshan Citrus" and "Xiangshan Red Beauty." The fruits
were marketed and promoted through Freshippo online
and offline channels. With new popularity, Xiangshan
farmers quickly found infringing versions of their goods, but successfully utilized Alibaba's IPP platform to file takedown

Set up in early 2021, "Taobao Short Classes" provide entrepreneurship training in various skills. Morethan a thousand three-minute lessons have been produced, with more than 20 million attendancesby the end of FY2022.
More than 1,000 enterprises used our lessons for internal training courses by the end of FY2022.

Protecting Italian agricultural products
Through long-term cooperation with the Italian authorities, Alibaba has helped protect the geographical indications

Building joint digital talent training centers
Since 2014, Taobao Education has actively supported rural e-commerce by delivering training toModena vinegar, Tuscan extra virgin olive oil, and Chianti Classico red wine.

entrepreneurs, both through offline and a growing number of interactive online classes. In 2021, aUsing human models to show clothing can be expensive, time consuming, andCommunity

AI virtual models promoting legal use of product imagery

Small
Businesses

Felice Assenza, Chief of the Italian Central Inspectorate
for Food Quality and Fraud Repression

total of 200 courses were added and 7,000 participants were trained.

Consumersof 42 of Italy’s most iconic and valuable exports, such as Mozzarella di Bufala Campana cheese, Aceto Balsamico di

We have a long-standing collaboration with Alibaba Group in fighting infringing
geographical indications in the agri-food sector… We have been working
successfully with Alibaba for six years and using their reporting system, the IPP
Platform, which is a very easy and effective tool.

Employees

requests, allowing them to effectively manage authorized use of the "Xiangshan Red Beauty" brand.

Free online courses support entrepreneurial success

Environment

marketing for Xiangshan's tasty variety of citrus. In 2021,

Executive
Summary

Training and learning

Chairman's
Letter2022

sometimes leads to the unauthorized use of modeled product images. Alibaba's
of models displaying products such as apparel. Made available without charge to
our merchants, Virtual Model is now widely used across several of our e-commerce
platforms. As of March 2022, more than 20,000 merchants have used the system

Philanthropy"Virtual Model" system, released in 2020, lets merchants use AI generated images

to generate more than 390,000 images. The algorithms used in Virtual Model
have been commended at top international academic conferences such as CVPR,
Trust

ACM MM, and AAAI, and are covered by five patent applications.

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Not only do our digital platforms provide business capabilities to MSMEs, they also connect them to various

Executive
Summary

Bringing opportunities to MSMEs by connecting
them to markets

Chairman's
Letter2022

Taobao Deals helping firms expand beyond their regional markets

consumer markets, which lay the foundation for entirely new business opportunities.

Connecting to the domestic market

regional businesses due to factors such as logistics costs and branding. With the Taobao Deals M2C

Across our varied platforms including Taobao, Taobao Deals, Ele.me, and others, the common appeal is in thebusiness and lifestyle ecosystem built by tens of millions of small businesses and many more customers. Our
business operating system offers foundational tools that bridge consumers and merchants, and most critically,

now broken barriers.
After Shijiazhuang Chuangmei Carpet Factory opened its Taobao Deals direct-sale store, online revenue
grew to account for 40% of total sales. According to factory director Xu Zhang, Chuangmei previously
stocked products based on past experience, but frequently faced inventory mismatches. At its worst, thisled to a backlog of RMB6 million in raw materials in 2017 due to incorrect forecasting. Now with advanceorders from e-commerce, their production is determined by sales, without inventory problems. Moreover,

From a Small Stall to a "Super Factory"

Employees

provides unprecedented market opportunities for MSMEs.

(manufacturer-to-consumer) model in operation from 2020 onwards, over 40,000 Hebei brands have

Environment

Not long ago, many of the industrial belt manufacturers in Hebei were limited to being only

Taobao Deals facilitates the selection of best-selling products. In the past, they often placed 10 bets forto set up a stall trading in electronic chips. This grew into his own manufacturing firm "Tongheng Weichuang,"
which specializes in wireless communications and network equipment.
Xiaowei began as an OEM manufacturer, but margins were always thin, and in 2014 he launched products underfound the perfect partner for its development with our 1688.com e-commerce platform for producers.
Since settling on 1688, Xiaowei's business has been helped by the platform to navigate a range of growthrate with a high degree of accuracy. In addition, by using the Taobao Deals warehouse, Chuangmei has
cut delivery times by an average of 5 hours and logistics costs by 15%.

If we use PVC mats to illustrate, previously the costs for retail deliveries
were 30 times more than for wholesale. Now we are able to fulfill smallorders efficiently and can carry out all orders with a unified standard.
Xu Zhang, Director of Hebei
Shijiazhuang Chuangmei Carpet Factory

Small
Businesses

his own brand. Sales and marketing for smaller manufacturers has always been a challenge. In 2017, his businessone winner. Now, they design new products with data, which helps merchants predict a product's success

Consumers

14 years ago, a young man from Chaoshan named Xiaowei Li travelled to Shenzhen with 20,000 yuan in his pocket

milestones and challenges, eventually seeing some of his products become top performers on a variety of
COVID-19 pandemic by allowing him to fully showcase his products to customers without them needing to leave
home and visit his factory. His business was given a further boost by 1688's "Super Factory" brand support andincubation program, launched in 2020, which has increased their online traffic and helped establish long-term

Community

e-commerce platforms. 1688's advanced e-commerce technology has been of particular help to him during the

supplier partnerships with large clients including Lenovo and Tencent.

Philanthropy

Before we met 1688, we were just a small OEM factory. Since meeting 1688, we
have built a "super factory" now selling over RMB100 million annually.
Xiaowei Li

Trust

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We help small businesses achieve their global aspirations in three essential ways: helping global merchants to buy
and sell globally, including accessing customers in China; helping Chinese MSMEs to venture overseas; and helping
MSMEs outside China to sell more easily in their home markets.

In FY2022, there were over 245,000 paying members from China and around the world on Alibaba.com, throughwhich more than 40 million buyers from over 190 countries sourced business or completed transactions.
In 2016, Alibaba proposed the electronic World Trade Platform (eWTP) initiative, aiming to foster more convenient,cooperative projects on four continents. These include promoting cross-border digital commerce, improving digitalfinance and digital logistics, building the digital Public Service Platform (PSP) to facilitate trade, as well as carryingout digital talent training and technology sharing.

website for maternal and infant products in Turkey. It has grown
rapidly, developing into the No. 1 maternal and infant e-commerce
brand in Turkey with a market share of 50%. In June 2019, ebebek
became the first Turkish merchant on AliExpress to sell globallyand also opened a flagship store on Tmall, and has been growing
overseas markets through these global platforms. Erdogmus, who isachieving his dream of "selling to the world," now proudly displays
two charts in his office: a world map and a sales chart by country.

Bringing Taobao Villages to Mexico

Employees

innovative, and inclusive global trade through digitalization and collaboration. At present, eWTP has launched 10

In 2011, Halil Erdogmus founded ebebek, the first local e-commerce
Environment

Helping merchants buy and sell globally

Alibaba powers Halil’s global dream

Executive
Summary

Connecting to the global market

Chairman's
Letter2022

As a young Mexican studying abroad in China, Andres Diaz Bedolla participated in the eWTP Global Digital
villages he visited, such as Bainiu Village, and he felt this model would work well in Mexico too.

Ethiopian coffee growers sold more than 10,000 packs instantly

coffee industry. With the COVID pandemic, the Ethiopian
coffee industry saw a sudden drop in sales, along withsevere disruptions in production and logistics. Manysmall businesses were deeply affected, so in late 2021,
organizations to carry out a project to help somebusinesses recover. Through training sessions, local MSMEs
learned about packaging, online store management,
and logistics. In December 2021, this cooperation helped
three local Ethiopian coffee brands become the first to
into the Chinese market. During Chinese New Year in 2022,
these Ethiopian brands launched their first livestreaming
promotion, resulting in more than 10,000 packs of coffee
being sold in seconds.

participated in the eWTP GDT program, learning both theoretical concepts in the digital economy and how
to apply best practices. Afterwards, theseteachers applied the knowledge theygained from the eWTP GDT program in theirown classes, benefiting over 8,000 students.
These students were linked with 1,500 local
enterprises and small businesses, helping
them undergo a digital upgrade to bring
their products online, use digital payments,and manage logistics. These merchants arenow selling their Mexican specialty products,
including Mexican honey, leather goods,
and molcajete to global consumers. Andres
saw his aspirations reach fruition with anumber of these "Mexican digital villages."

Philanthropy

successfully onboard with Tmall Global and sell directly

GDT and the Taobao village models to five Mexican states. As of 2021, over 400 university teachers had

Community

we worked with the local government and international

In 2020, with the support of the Mexican government and as an eWTP GDT partner, Andres brought the

Small
Businesses

In Ethiopia, an estimated 20% of the workforce is tied to theConsumers

Talent (eWTP – GDT) program. While attending this program, Andres was highly impressed by the Taobao

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Fueling Small Businesses

We continue to make it easier for MSMEs in our home market to access tremendous global opportunities. Our

Building on what we've learned in our home market, we are bringing these tools and capacities to

AI translation system can overcome communications barriers in global trade by translating between moreother emerging markets. Lazada's e-commerce business has grown rapidly in Southeast Asia, andthan one hundred languages. To help through the ongoing pandemic and other global disruptions, we are

the unit is bolstering it with more automated warehouses, sorting centers, and technology-enabledproviding MSMEs with locked-in prices for shipping by sea this year. We provide services such as a full container

facilities across the region. Lazada has continued to improve its cross-border and "last mile" logistics

load (FCL) limited warranty, compensation for late arrival of trailers at the port, arrival guarantee, and a wide

capabilities. Meanwhile, Lazada University imparts e-commerce knowledge, intelligent marketing,range of rights protection so that businesses can ship without worry.

and smart decision-making that can help local sellers adopt better sales plans. Multilingual customer
service desks allow sellers to communicate with consumers from all over the world more conveniently.

Assist local community development

In April 2022, in order to help merchants shipping to and from Shanghai Port during the disruption caused by the global
pandemic, we launched a "one-stop solution" for sea and land transportation. This provided integrated logistics solutions
for trailers, customs declaration, and full container loads (FCL) to help Alibaba.com merchants. This included the first FCL

Supporting communities

Helping small businesses

program targeting shipments to the United States to help reduce friction when shipping to its congested West Coast ports.

In December 2021, devastating

Lazada partnered with

24-hour professional customs declaration services with our partners.

floods hit Malaysia. Lazada quickly
responded to support the affected
communities, donating to 10 rescue
centers nearly 30,000 units of relief
supplies including meal rations,

government agencies acrossSoutheast Asia to support
brick-and-mortar stores to shift
online during the COVID-19
pandemic.

Consumers

We have integrated nearly 4,000 lines of trailers from major manufacturing centers to Shanghai Port. We now also provide

Employees

Helping to navigate Shanghai Port for our merchants

Environment

Facilitating e-commerce globally

Executive
Summary

Helping Chinese businesses to go global

Chairman's
Letter2022

bottled water, blankets, hygiene

Small
Businesses

kits, baby supplies, COVID-19 test
kits. The LazadaForGood digital
giving platform allowed Malaysians
nationwide to donate online toNGOs helping with relief efforts.

The Chinese coffee machine brand HiBREW joined the AliExpress platform in August 2019 and has grown into a leading

Kenny, head of the HiBREW brand, attributed this success in expanding overseas to the help of the AliExpress platform:"We used to focus on the European and American markets. After we got on AliExpress, we found that the Middle East

Lazada has partnered

In December 2021, Lazada

with a number ofPhilippines supported the Angels

local organizations infor Angels project, which aims to

Singapore to provide

empower marginalized women to

digital workshops to help

create Christmas decorations.

seniors understand new
product categories, andthe use of services such as

market also has a great demand for our machines. Now 60% of the orders on AliExpress come from the Middle East - wemobile payment for online

would have never predicted this ourselves!"

shopping.

Philanthropy

seller. During the pandemic, HiBREW's sales rose nearly 70%.

Empowering womenCommunity

Helping HiBREW coffee machines sell all over the world

Digital inclusion for seniors

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Fueling Small Businesses

Enabling inclusive employment
is particularly meaningful when we can provide fair opportunities to historically underrepresented groups, and give
people new skills, thus helping them develop. The growth of our platform helps to generate extremely scalable,
flexible, high-quality, and inclusive employment compared to traditional businesses.

Tens of millions of MSMEs on our platforms
Based on recent research, it was estimated that our e-commerce platform had directly brought about at least 20
million jobs in the retail industry, based on micro surveys. And this number keeps growing.¹

Large-scale employment
Company direct employment

Employment opportunities created or promoted by our platform ecosystem

Environment

The food delivery platform Ele.me has also promoted millions of employment opportunities in catering.

Executive
Summary

Creating and promoting quality, inclusive employment is an important way business can contribute to society. This

Chairman's
Letter2022

As of March 31, 2022, Alibaba Group directly employed more than 250,000 full-time employees in 27 countries
on the job, making themselves increasingly competitive in the digital era.

Employees

and regions. While working to make possible all that we do, they continue to acquire and enhance their skills
Direct job
opportunities

Platform employment
Our platform ecosystem has gathered together more than one billion consumers and tens of millions of
MSMEs and individual workers. Their economic activity drives a series of new job opportunities, such as
many transactions on the platform facilitate the circulation of goods and services, and promote employment
in the upstream and downstream businesses such as manufacturing. We see our most important role not as
selling products, but as working with myriad stakeholders to develop a vibrant ecosystem with tens of millions

Employment along
the value chainof businesses, most of which are MSMEs and individual workers. Helping others obtain opportunity is our best(henceforth RUC team), our platforms have helped create and promote employment opportunities for morethan 60 million workers, hundreds of times the number of our own employees.

Selling through Alibaba's platforms, millions of guitars are shipped worldwide

According to the RUC team, Taobao Livestreaming
has created 1.731 million direct and indirect job
opportunities such as livestreaming anchors.
Food delivery platform Ele.me had created job
opportunities for more than one million monthly
active food delivery riders as of FY2022.

economy that creates more than 20,000 jobs in a previously impoverished area.
Yujiang Tang, 57, is one such worker. Yujiang works in fulfillment in the factoryin front of his home which is part of a Taobao Village. With a stable monthly
income of RMB3,000 to RMB5,000, his whole family now worries less about their

In FY2022, the GMV of our platforms in mainland
China was RMB7.976 trillion, which represents ourplatform's role in facilitating these transactions byefficiently matching demand with supply at scale.
This then drives employment in the value chain.
According to estimates by the RUC team and IDC,
the employment opportunities created in this value
chain from platform activities are 1.48-2.85 times
the direct employment in the platform, which wasestimated at over 20 million.
Fliggy, Taobao Movie, and other service platforms
also link and promote more than one million jobs
in related industries.

Philanthropy

every year from Zheng'an County, Zunyi, Guizhou Province, nourishing a local

In 2021, the orders from our e-commerce platform
supported more than one million jobs in theexpress delivery industry.

Promoting the employment of
upstream and downstream
production and service industries

Community

The world strums 8 million guitars and a Taobao village rises from poverty

Specialized services and jobs
derived from the platform's
economic activities

Small
Businesses

contribution to social value.
According to a research report by the School of Labor and Human Resources of Renmin University of China

Consumers

Specialized services
and jobs

livestreaming anchors, customer service agents, product marketers, couriers, and so on. At the same time, thelivelihood. He said: "The job is so good now that it is as if the wind doesn't blow
over me and the rain doesn't make me wet (a Chinese proverb). I can take care of

Our platforms help create and promote more than 60 million job opportunities
Guitar factory worker Yujiang Tang

¹ Source: Employment system and employment quality in Alibaba's ecosystem, 2020, School of Labor and Human Resources, Renmin University of
China.

Trust

the children in my hometown, and I'm very respected by everyone."

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Fueling Small Businesses

More and more workers are engaged in various forms of flexible employment made possible by digital platforms,

Ele.me’s food delivery platform offers a typical form of flexible employment for its more than one million

including online customer service, remote doctors, livestreaming anchors, digital planners, and delivery riders, among

active riders every month. To ensure their safety and well-being on the job, it has implemented several new

others. Many forms of digital employment lower barriers to entry, increase job flexibility, and better match individualand concrete measures.

Executive
Summary

Flexible employment

Chairman's
Letter2022

skills. These new avenues of work, by matching different job needs with skills, help in maintaining more stable andFeatures of flexible work enabled by the platform²
Improve eligibility and accessibility
Our customer service positions provide well-paying
jobs to those with disabilities who may face barriers
in many traditional industries

Improve human resource allocation
Accessibility"Remote doctors" bring medical resources topatients anywhere, bringing better medicine tothose in rural and underserved areas"Shared employees" reduce shortterm fluctuations in the labor market,
such as during the pandemic

Improve autonomy in work

Autonomy

We required all the riders to be covered byhave been adjusted to a more flexible range.

specialized commercial insurance.

Optimize routes and delivery times based on

An anti-fatigue alert kicks in after a rider has

weather data, to ensure rider safety.

worked for 4 straight hours, implementing a

Riders can independently adjust the upper limit ofmandatory break.

the pace of orders.

Ele.me opened a psychological counselingservice appointment hotline.

Livestreamers can independently choose andmanage their workflow"Digital planners of small businesses" can decide
when and where to work

Ele.me efforts to protect riders

Consumers

Shareability

The delivery time slots given on our consumer app

Employees

Alibaba's "Blue Ocean" employment
platform helps restaurants and local
shops with "shared employees" ordelivery riders.

Ele.me develops ways to put delivery riders first, including

Environment

balanced labor markets.

Growth of livestreaming e-commerce

rapid rise of broadcast e-commerce. Overnight, the new profession of livestreaming "anchors with goods" became

Upgraded safety systems

Optimized regulations

Guaranteed fair labor remuneration

Compliance with labor laws

Complete healthcare coverage

Smooth communication mechanisms

Improved welfare plans

Equipment guarantees

Cultural enrichment activities

mainstream. In turn, this burgeoning industry created numerous ancillary careers behind the camera in program

Small
Businesses

At the height of the COVID-19 pandemic in early 2020, the emergence of the "stay-at-home economy" promoted the

production, not to mention in the goods sold. Zhaopin.com reported that the number of positions related to live
direct and indirect employment opportunities. ³
Broadcasting assistantLivestreaming ecosystem job types
Live operations

Anchor trainer

Live product selectors
Field control

Influencer
Live script planner

Philanthropy

Live lighting artist

Live assessor

Community

broadcasting soared 84.0% year-over-year in the spring of 2020. Taobao Live has created an estimated 1.731 million

Live investor

Trust

2
qualityof flexible
employment
on digitalplatforms:
Live Employment
A study based
Estimate,on Alibaba's
2021,
³For
Source:moreThedatailsabout
the data,
please refer
to Taobao
School practices.
of Labor and
Human
SchoolResources,of Labor andRenminHuman
University
Resources,of China.
RenminUniversity of China.
³ Source: Taobao Live Employment Estimate, 2020, School of Labor and Human Resources, Renmin University of China.

Environmental, Social, and Governance Report

Fueling Small Businesses

Inclusive employment

Technology has created a net increase in overall labor demand over the past two decades according to the World

Female employment

Bank. Alibaba sees our goal as helping workers not just to find a job but to help them find jobs they want, and to "levelup" to a job that gives them higher growth potential, and a better sense of personal and professional satisfaction.

Executive
Summary

High-quality employment

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133
140

Chairman's
Letter2022

Digital platforms can help mitigate traditional gender discrimination in employment by enabling all
parties to compete on an equal footing. Indeed, our statistics show that nearly half of the tens ofE-commerce

Digital managers

About 46% of the tens of millions of e-commerce entrepreneurs active on Taobao are women,

Digital managers use smart digital platforms to set up an organization's digital work suites and businessbuilding their own sustainable businesses with the equalizing power of digital tools.

Environment

millions of merchants on our platforms are operated by women.

as of March 31, 2022. These women not only have job opportunities in e-commerce, but aremanagers as a profession, with DingTalk participating in drafting the standard. Statistics show that the number ofSales livestreaming

digital managers has grown rapidly and is estimated to total more than 2 million.4

E-commerce livestreaming offers many women, especially those living outside traditional

Employees

intelligence applications. In September 2021, China's national occupation standard officially recognized digital

media markets, potential to develop themselves and their businesses. On our platforms, 78.2%
of livestreamers are women, and 31.3% have a high school education or below.5

Women are nearly 30% of Cainiao employees, with roles across all logistics positions. Tens of
thousands of women have started their own businesses joining the Cainiao Post.

Consumers

Logistics

Small
Businesses
Community

AI trainers
AI trainers are specialists who facilitate the training andoptimization process for artificial intelligence algorithms
to ensure that they are accurate and continue to improve.
In November 2021, the Ministry of Human Resources andPhilanthropy

Social Security (MOHRSS) of China released the National
Vocational Skills Standard for "Artificial Intelligence
Trainers." Alibaba played a leading role in drafting
the standard, which goes into detail on the different
categories of algorithms and roles required.

5 Source: Livestreaming Commerce Talents Report, 2020H1, Boss Zhipin.

Trust

4 Source: https://wxb.xzdw.gov.cn/xxh/xxhgzdt/202207/t20220727_265617.html

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Fueling Small Businesses

Executive
Summary

Accessible employment
By creating work that relies less on physical skills or being in a fixed location, digital technology has
lowered barriers and opened up many new avenues of opportunities for people with disabilities.

Ele.me app assists a "silent rider" to be effective and safe

we have designed. The app will ask its users to use alternate methods of contact, and will make text-based
contact with users for him. The app also includes sign language processing technology. Assisted by thesefeatures, Bin averages over 40 orders per day.

Environment

Bin Gao, 28, is a hearing-impaired individual who works as an Ele.me rider, thanks to the accessible functions

Barrier-free in the Cloud: "Teyun" workers

Chairman's
Letter2022

Alibaba proactively engages with multiple foundations and advocacy groups to accommodate more people withdisabilities into our work. We train special-needs workers and have made adjustments to some roles. "Teyun" is a2,500 people with disabilities were working in Alibaba Cloud customer service. Hui Guo, 32, from Shangqiu, suffered

Voice calling function turned off

an accident and lost his right hand. In Cloud customer service, he found a new starting point in life. He rose throughNotification that rider has a disability
affecting communications

Employees

group of flexible workers with disabilities in Alibaba Cloud customer service. In FY2022, a monthly average of over

the ranks in the Henan Zhongmu Cloud Customer Service Center and now earns one of its highest monthly incomesin the center.
Consumers

Guides users to use text chatfunction with an explanation

Small
Businesses
Community
Philanthropy"Cloud Customer Service" training center

Trust"Silent Rider" Bin Gao

Environmental, Social, and Governance Report

Promoting responsible production

Fueling Small Businesses

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144

As we help small businesses transform, we strive to help them run operations themselves and produce

Smart devices are crucial to running factories in ways that are better for the environment and for

responsibly, such as through helping them to reduce their energy consumption or to adopt green

workers. Our industrial internet platform currently connects to over 1.6 million industrial devices frommanufacturing and agricultural practices. Additional details can be found in Chapter 1: "Restoring our

36,000 enterprises using 100 sensor types, more than 200 chip models, and more than 300 industry

green planet."algorithm models, which are integrated with intelligent brains and data centers. These systems help
customers in 10 industries make better informed and more intelligent decision-making in production to
maximize efficiency and minimize resource use and waste.

Alibaba Cloud launched our energy efficiency platform, "Energy Expert," to help our customers reduce
their energy use and aid their low-carbon transitions. The application allows them to see their power
use and carbon emissions in real-time. Among other features, Energy Expert helps enterprises run their
10%. By the end of March 2022, nearly 1,700 companies had started to use Energy Expert.

Robam Electric "lights-out factory"
Operations for Robam Electric are built on the Alibaba Cloud
Internet of Things (IoT) platform, which connects all the 284
automated machines and processes tens of thousands of

Employees

HVAC more efficiently through self-learning energy-saving algorithms, cutting energy use by roughly

Environment

Providing green digital technologies to MSMEs

Executive
Summary

Alibaba's industrial internet powers responsible production

Chairman's
Letter2022

data points in real-time. This allows the formation of an"intelligent brain" that helps direct the entire process ofscheduling the factory, achieving automated coordination
Huazheng New Materials is a new and specialized maker of composite honeycomb panels sold to 20

between equipment, and removing the need for manual

countries and regions globally. With Alibaba Cloud's Energy Expert, the firm can compare and analyze

operations. The smart factory, jointly built by Robam Electricenergy consumption, identify abnormal use, recommend energy-saving measures, and identify problems

and Alibaba Cloud, has improved overall production

such as minimizing peak power consumption. In one factory alone, Energy Expert helped Huazheng saveefficiency by 45% and reduced production costs by 21%.

Fitting 100 waste incinerators with a digital solution

Small
Businesses

170,000 kWh of electricity.

Consumers

Energy Expert helps Huazheng Composite Materials implement carbon accounting

In 2019, Grandblue Environment installed Alibaba Cloud Industrial Solutions (AICS) into incinerators toby 23%, while manual workload was reduced by 87%. In November 2021, Grandblue installed AICS in theirincinerators in Fujian, achieving a 13% increase in steam flow stability.

Community

achieve efficiency in operation. With this technology, their Nanhai plant saw steam flow stability increase

So far, AICS has been installed in 100
AICS combines big data, AI, and automatic
control technologies to enable waste
incinerators to operate autonomously,

Philanthropy

incinerators across nearly 30 cities in China.

generating an additional 360 million kWh ofclean electricity annually, equivalent to theTrustcapacity of a medium-sized hydroelectric plant.

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Fueling Small Businesses

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146

Accelerating the transition away from harmful plastics

Alibaba's e-commerce platforms can play a critical role in helping manufacturers of greener products reach, educate,

We are leveraging our platforms to reduce plastics pollution, and we have been tightening bans on harmful

and sell in a global market. To help renewable products even further, in May 2022, Alibaba.com launched theplastic products while helping our partners to accelerate the development and adoption of biodegradable

Renewable Energy Online Trade Show, the first of its kind in China. Nearly 500 virtual booths representing over 100,000

alternatives.

rate of the new energy industry on Alibaba.com has leaped ten-fold.

Since 2021, Taobao has twice expanded the list of plastic products prohibited on the platform, including
styrofoam tableware, plastic cotton swabs, and plastic mulch. We were the first e-commerce platform in
China to implement the latest policy, and hold merchants accountable with clear enforcement provisions.

Alibaba 2022 Renewable Energy Online Trade Show

Environment

new energy products welcomed nearly 10,000 buyers on the first day. In the past three years, the cumulative growth

Executive
Summary

Marketing green products to the world

Chairman's
Letter2022

Through our Green Packaging Merchant Support Program, we provide players in this industry segment withgrowth of biodegradable products on the platform. By the end of June 2022, the number of merchants on
Taobao and Tmall producing biodegradable plastic bags meeting China's certification standards reached195, up by 590% year-over-year. Over the same period, sales increased by 745% for biodegradable plastic

Employees

systematic support such as start-up guidance, operation support, traffic, and brand exposure to ensure thebags and increased by 58.6% for biodegradable express packages.
Consumers

Small
Businesses

Alibaba is promoting the growth of resource-saving

Community

Promoting green and organic agriculture
and environmentally friendly organic agriculture in
China. Freshippo helps growers reduce costs andmodel by connecting stable consumer demand withguaranteed sales for growers. Since 2020, Freshippo[Organic Fresh] has expanded its number of jointly-

Philanthropy

increase efficiency in the "Internet + Agriculture"built growing areas from an initial 4 to more than 100,covering more than 20 provinces and cities across theTrustcountry.

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Enhancing Community Inclusion and Resilience

Chairman's
Letter2022

Executive
Executive
Summary
Summary
Environment
Environment

groups, see years of hard-won gains wiped away by natural disasters and other crises.
Accordingly, we commit to fostering rural development and bolstering community∙ Rural revitalization throughdigital development∙ Digitalization for community
resilience

Community
Community

not be sustainable if many people across society, especially people in disadvantaged

Small
Small
Businesses
Businesses

in China, a situation paralleled across the world. At the same time, development will

Consumers
Consumers

The urban-rural socioeconomic divide remains the largest developmental challenge

Employees
Employees

EnhancingCommunity
Inclusion andResilience

resilience as directions to pursue, and will continuously deploy resources and develop
Philanthropy

new technologies to support progress in these two intertwined challenges.

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Enhancing Community Inclusion and Resilience

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Executive
Summary

Rural revitalization through digitaldevelopment

Chairman's
Letter2022

Third, by investing in education, job creation, and training that are essential to leveling-up the local

per-capita disposable income of Chinese urban households was 2.5 times that of rural households.¹ Comparedtalent pool in rural communities as drivers of rural revitalization. One of our unique initiatives is theto their urban counterparts, rural areas face many growth barriers, including a dearth of market access, value"rural commissioners" program, whereby we send senior Alibaba staff to rural areas as facilitators

chain integration, trained talent, and technology. This is the largest economic inequality challenge in China andexperienced with modern commerce, and empower them with Alibaba's resources to designin many parts of the world.

customized local development plans.

Environment

One of the most pressing challenges to inclusive economic development is the rural-urban divide. In 2021, theAlibaba primarily helps to redress these imbalances in three ways:
First, by continuing to spur economic development by building China's largest e-commerce market into rural

Employees

Bridging rural and urban economy
with e-commerceareas to better connect rural and urban economies and markets.
Second, by doing our part to help upgrade rural value chains, and bring much-needed logistics facilities,
branding programs, we are helping rural communities and their entrepreneurs to meet the growing demand
for green and organic products, ecotourism, and authentic cultural goods and services.

Talent development andcapacity building

Revitalizing ruralvalue chains

Consumers

Rural revitalization
through digitaldevelopment

production technologies, as well as marketing and branding capabilities. By sharing our digital platform andSmallBusinesses

Community
Philanthropy
Trust¹ According to the National Bureau of Statistics of China, in 2021, the annual per capita disposable income of urban households in China was RMB47,412. For rural households, the figure was RMB18,931.

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Enhancing Community Inclusion and Resilience

Chairman's
Letter2022

Through our e-commerce platforms, many in rural areas havebecome active participants in the digital marketplace and in doing
to show the potential value realized when digital technology helps
to lower geographic barriers. The number of Taobao Villages grewfrom 3 in 2009 to 7,023 in 2021, across 28 provinces, autonomous
regions, and municipalities. In 2021, sales from these Taobao
Villages, together with 2,171 "Taobao Towns,"³ exceeded RMB1.3
sell RMB128.1 billion worth of products from 832 counties previously
categorized as impoverished under China's national standards.

RMB128.1 billion
in sales in 2021 by 832
counties previously
categorized as impoverishedon our platforms.

The first Taobao Village in Hubei Province
Yunxi county in the Qinba Mountains used to be one of Hubei province's nine counties in extreme poverty,
with a poverty rate that registered at 32.7%.4 In the village of Xiaying, local official Tingzhou Liu founda path out through e-commerce, promoting the sale of unique local turquoise stones. Tingzhou also
supported local families in setting up stores. With these efforts, Xiaying emerged in 2014 as Hubei's first
Taobao Village, and by 2017 it became one of the first villages entirely lifted out of poverty in Hubei. Its
newfound fame as a Taobao Village allowed villagers to also develop a booming tourist economy, and in
2021, the average annual income in the village had reached RMB25,000.

Employees

trillion on our platform. In the same year, we helped local residents

in sales in 2021 by 7,023
Taobao Villages and 2,171
Taobao Towns on ourplatforms.

Environment

so helped to promote development. "Taobao Villages"² continue

RMB1,300 billion

Executive
Summary

Building bridges between rural and urban economies
and markets

How did we get here?
first comprehensive program to bring digital connections ande-commerce to rural towns and villages. This dramatically

Consumers

In 2014 we launched our "Rural Taobao" strategy as Alibaba's

2014 Rural Taobao

increased the traffic on our platforms between rural and urban
areas, helping a number of rural businesses to take root and grow

Small
Businesses

In 2017, we launched the Alibaba Poverty Alleviation Fund, with

Alibaba Poverty

2017 Alleviation Funda focus on five major issues: education, healthcare, women, theenvironment, and e-commerce solutions. Since 2019, we have run
our unique "rural commissioners" program, where senior Alibaba

Rural

2019 Commissioners

managers are sent to live in rural regions to assess local needssocioeconomic development. In 2021, we upgraded our rural

Alibaba Rural Revitalization Fund

2021 Hometown Intiative

initiatives with the Alibaba Rural Revitalization Fund and alsoannounced our "Hometown Initiative."

Trudy Dai, President of Core Domestic
E-commerce of Alibaba Group

Tingzhou Liu, Xiaying Village
National Poverty Alleviation Awardee

In 2019, Alibaba became the first technology company
Innovation Award" in China. In 2021, Alibaba wasnamed a "National Exemplary Organization in
Poverty Alleviation."²A village can qualify as a Taobao Village if it achieves annual sales of RMB10 million, and either has more than 100 active e-commerce stores or where at least
10% of local households operate e-commerce stores.
³A town can qualify as a Taobao Town if it has at least three Taobao Villages, and either total sales from the town exceeds RMB30 million or the number ofactive e-commerce stores exceeds 300.

⁴ Source: http://zt.shiyan.gov.cn/2019ztzl/js50/js50fbh/202007/t20200721_2088038.shtml

”

Trust

”

to win the "National Poverty Alleviation Organization

Philanthropy“

Alibaba has never thought of its business as planting a seed that will instantly
blossom with flowers. For many endeavors, you have to persist for 8-10 years untilroots are firmly planted and flowers can bloom.

“

E-commerce's biggest impact was introducing to us a new idea. The socalled new economy is actually an Internet-powered digital economy.

Community

and then develop tailor-made digital solutions for sustainable

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148

Enhancing Community Inclusion and Resilience

Executive
Summary

Helping revitalize rural value chains
A vibrant and sustainable local economy is the key to rural revitalization. We help to develop the value chains

Agricultural direct purchase model

necessary to empower rural industries. Our areas of focus include building capabilities for rural e-commerce,

We build direct procurement rural bases in many areas, in which we apply digitalization to improve

developing rural brands, promoting smart agriculture, and boosting rural tourism.

research and development, boost production efficiency, and increase product standardization, helping

Rural culture and tourism

Environment

create value across the entire agricultural value chain.

Smart agriculture

Chairman's
Letter2022

An agricultural procurement network directly connecting farms and customers
Employees

Digital farms

Production
warehouse

Taocaicai
processing
centerSales
warehouse

Grid warehouse

Small shops

Consumers

E-commerce

Direct agricultural
products procurement

Taocaicai's direct purchase model

Philanthropy

Digital service
platform

Centerwarehouse

Community

Brand
designDigital agricultural
procurement base

Rural digital value chain
capabilities

Rural logistics

Brand
protection

Brandmarketing

Using
technology
to revitalize
rural value
chainsTourism
livestreaming

Small
Businesses

New rural brands

Digital solutions
for tourism productdevelopment

Consumers

Smart plant
breeding

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Executive
Summary

Smart logistics
Cainiao continues to invest to ensure a widely available village service network with local partners.

Jiangsu Daizhuang Freshippo Village

Approximately 50,000 Cainiao rural village stations are helping to improve capacity in more villages totechnology and market capabilities to promote order-driven production and introduce better standardization andquality control. Since 2019, we have run our "Freshippo Village" model, in which we work with villages using oursteady orders to build a stable producer relationship, which helps to promote the standardization, specialization,deliver rural products efficiently across China. More than 1,000 Cainiao county-level logistics warehouses
have also been built. This includes more than 400 counties formerly on China's national poverty list.
In some locations, we have been deploying technology to enable higher-value added processing, forexample, in automating functions such as sorting, storage, delivery, and quality control.

Environment

Currently, Freshippo has more than 550 agricultural direct procurement centers in China. We apply our digitaland digital transformation of production. Freshippo shares its analytics and market insights with producers, helping
spread across 19 provinces and regions.

1,000+In December 2020, Daizhuang Village became the first "Freshippo Village" in Jiangsu Province. Freshippo
meticulously established standards for each type of agricultural product from the village, earning Daizhuang areputation as a high-quality "brand" among consumers. What began with rice has now steadily expanded to 40

Over 1,000 Cainiao countylevel smart logistics centers
have been built across thecountry, covering more than
400 counties previously on thenational poverty list.

Alibaba's platform surpass RMB2 million a year.

local product. The pomelo industry has historically relied on manual labor for sorting, storage, andtransportation, resulting in low efficiency and lackluster competitiveness. In 2021, Shangrao partneredwith Cainiao to upgrade the production process and logistics of their Majia pomelo. A Cainiao smart
logistics center was set up, using an intelligent sorting system to automate quality control and determine
fruit pricing. With increased productivity and product consistency, Shangrao's Majia farmers saw revenues
increase by 20%.

Community”

Majia pomelos are a specialty variety of citrus from Shangrao City in Jiangxi Province and a major
Small
Businesses“

Previously, our high-quality agricultural products couldn't be sold at a great price.
Now working with Freshippo, this bottleneck has been addressed. Solving this 'last
mile' sales problem has been a major achievement for Daizhuang's modernization of
our agricultural business.
Yafu Zhao, Daizhuang Village
Recipient, National Poverty Alleviation Award

Cainiao's smart logistics boosts farmer competitiveness and improves
livelihoods

Consumers

other products, including vegetables and persimmons. This has helped Daizhuang agricultural product sales on

Employees

Cainiao county-levelsmart logistics centersthem to adjust their production efficiently. As of October 2021, there were 136 Freshippo villages nationwide,

Philanthropy
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We deploy our platform resources to provide digitally powered and integrated management of rural value chains.

China's rural regions are home to diverse products and attractions which have increasingly found a market

We try to find areas where we can support local businesses in operations or in market access. This includes support

among urban consumers. This trend can benefit substantially from improved branding and market access,in sourcing, production, logistics, sales, and other links along the value chain.

which increases awareness and demand for consumers. It also boosts sales and pricing for suppliers, raisingrural incomes and boosting rural development. Alibaba is trying to help enable and accelerate this growth.
In 2021, we launched the "Seeking Beauty in Rural Areas"
initiative, which gathered over 1,000 professional designers

Environment

Assisting brand development in rural agriculture

Executive
Summary

Establishing digital service platforms to support rural value chains

Chairman's
Letter2022

and design profession students across the country toLongquan Municipality in Zhejiang collaborated with Alibaba to create sets of digital value chains to support four
principal local agricultural industries: bamboo, tea, mushrooms, and vegetables. The digital platforms provide
local farmers and small businesses with intelligent production advisory, industry and market analysis, marketingand sales functions. This "all-in-one" digital support has helped local businesses increase their online sales

become design officers for social impact. Together
they crafted branding for underdeveloped counties toaccentuate their cultural heritage and appeal, and help
boost market recognition for their local products. To date,the initiative has helped 10 underdeveloped counties create
professionally tailored sets of brand designs.
Consumers

by RMB30 million, benefiting 200 farming families. In recognition of the innovative use of technology in ruraldevelopment, Longquan Municipality was chosen as a trial scheme within the common prosperity policy Initiativeby the Bureau of Commerce of Zhejiang Province.

1,000+

designers recruited
Lingshan county in Guangxi is famed for its lychees. To elevate their industry to the next level of success, thecounty partnered with Alibaba to upgrade their entire lychee value chain. Cainiao established a public-use smart

10

counties receiving
professionally designed
regional brands created

Small
Businesses

Digitalization helps process lychees better in Lingshan

Employees

Alibaba provides a digital service platform in Longquan

warehouse, providing farmers with services including smart sorting, grading, processing, refrigeration, andover 2,100 local farmers grow to RMB50,000.

Community

distribution. Since 2021, this smart warehouse and other improvements have helped the average annual income ofPhilanthropy

After completing upgrades to processing facilities, Longquanand Alibaba are now exploring the planting process.

Lingshan Agricultural Products Smart Warehouse

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Digital plant breeding

How Yijun's regional produce got an overdue make-over

Executive
Summary

Developing smart agriculture

Chairman's
Letter2022

Sustainable agriculture begins with high quality seeds. Alibaba has invested in data storage, statistics,
and artificial intelligence (AI) algorithms to help upgrade the traditional plant breeding process to become

During his stay, Yahui discovered that Yijun apples and other local products were of exceptional quality, but lacked

digitally supported "intelligent breeding."a brand identification. Their plain packaging did not help.

Environment

Alibaba dispatched Yahui Liu for a two-year posting as a rural commissioner in Yijun county in Shanxi Province.

Yahui brought in Alibaba's "Seeking Beauty in Rural Areas" program. Professional designers created packaging
for Yijun using distinctive artwork by local farmers and the region's unique natural scenery and history to makemarketing campaign for Yijun products on the platform. Through these efforts, the profit margins of Yijun's apples
grew by 10%-20%.

Chinese Academy of Agricultural Sciences and Alibaba join
forces to plant seeds
In June 2021, the Chinese Academy of Agricultural Sciences Institute of Crop Sciences (ICS) and Alibaba

Employees

attractive branding designs for the region's apples, walnuts, and corn. At the same time, we helped build a digital

jointly launched the "3T Smart Breeding" platform. Founded by a RMB30 million grant from the Alibaba
Foundation, the project integrates biotechnology, information technology, and AI for a more powerfulentire process of plant breeding to allow field trial design, field data analysis integration, and phenotypicand genomic analysis to all be accessed in a single AI-powered system.

We see enormous digitalization dividends for the future of farming and have been actively working todevelop digital agriculture solutions. This includes the implementation of Artificial Intelligence of Things (AIoT)

Small
Businesses

Digital farms

Consumers

seed development process. In the past year, we completed version 1.0 of the platform, which digitized thetechnology combined with data analysis. We have designed and deployed digital technology that can help
November 2021, we had launched "digital farms" in 12 provinces, autonomous regions, or municipalities.

Packaging Design for Yijun Agricultural Products

One could say we didn't design Yijun, but rather "found" it. So our work has a rustic
and carefree feel, seemingly as if it hasn't been deliberately designed. That's how you
touch people.

Yuning Jiang, chief designer of the Yijun project

digitally powered farm growing "Dangshan pears." The system collects real-time data on soil, temperature,and pest conditions and can visualize for farmers via an "Agricultural Knowledge Map" and a "Digital Planting
Model" to help their decision-making. The farm is able to achieve more precise nutrition management toincrease yields and resilience.

Trust

”

Alibaba Cloud and the Zhengzhou Fruit Research Institute (ZFRI) developed a digital planting model for a

Philanthropy“

Anhui Dangshan digital pear farmCommunity

attain higher levels of standardization, productivity, and quality control, to improve their overall yields. By

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Chairman's
Letter2022

China's countryside is replete with attractive natural landscapes and cultural heritage. Using both our online

One way Alibaba is positioned to support a successful rural economy is by helping to improve digitaland offline businesses, there is much we can do to link agriculture, education, health and wellness, and leisureliteracy, especially that of working-age residents, to bolster their employment opportunities. As such,

together to boost local tourism. We believe this is another important avenue for stimulating rural economies by

Alibaba is making talent development and capacity building the central focus of our strategy for rural

linking them to urban demand. In FY2023, we aim to help build up 10 model rural tourism counties, to help further

development, which manifests itself in a number of programs:
1. We station Alibaba employees in rural areas with schemes such as our "rural commissioner"and "rural technology officers" programs. These are uniquely valuable programs, by bringing

Environment

promote this development and to enable more people to enjoy what the countryside has to offer.

Executive
Summary

Promoting rural tourism and cultural charms

Building talent and capacity for long-term ruraldevelopment

digitally savvy senior managers to places that have lacked such experience before.
2. We establish digital employment and training schemes to create opportunities, building up
the local digital economy.

With Alibaba's help, Hengyi Village in Zhejiang Province has managed to ride the agritourism wave in recent years.

3. Finally, we invest in local educational and medical facilities to create the foundations for

In order for tourists to experience authentic local eco-agricultural development, Alibaba's Amap app prominently

long-lasting and sustainable development.

over 450,000 tourists have visited Hengyi, stimulating the local restaurant and lodging industry, and encouraging
people originally from Hengyi to return home and start businesses.

Lijun Sun, Director-General of Alibaba Foundation

We recognize there is no one-size-fits-all approach for development. In our rural commissioner program, we
dispatch experienced Alibaba managers to live on site in order to craft customized local strategies. In 2021,

Putting Pinggu and her blossoms on the maps, and the apps

we also sent out "rural technology officers" in a similar vein to tackle opportunities in digitalization.

Since 2019, Alibaba has sent a total of 27 rural commissioners withefforts. Pinggu's peach blossoms across its vast expanse of peach trees are an amazing display every year. In April

long-term postings to underdeveloped counties in China. These

2022, we held a week-long livestreaming on our platforms so netizens could see peach trees bloom right in front ofcommissioners live alongside the locals and get to know the area

their screens. The event attracted over 10 million viewers and 170 million reads. The livestreaming also introduced

intimately, both its challenges and opportunities. This allows themfolk customs and other specialties of Pinggu. We built options into our platforms such as "Pinggu One-click Smartto design specialized development plans in line with local conditions

Tour" and "Pinggu's Must-Travel List" for those who were inspired to visit.

and interests. Leveraging resources across Alibaba, they can establish
the concepts, tools, and capabilities to develop these communities.

Trust

Alibaba has collaborated with the rural Pinggu District since October 2021 to support their rural revitalization

Philanthropy

Rural commissioners

Community

Bringing digital talents to rural areas

”

Small
Businesses“

First we deliver the world's expertise to rural areas; then we train talented young
local people and find opportunities for them in the area; and finally we help to
educate the rest of the local population with skills to prosper in the digital era it's the basic framework of our thinking and the guide for our actions.

Consumers

displays local attractions and services on its maps. Since this feature went live on the Amap app in October 2020,

Employees

Alibaba boosts agritourism in Hengyi Village

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Chairman's
Letter2022

Executive
Summary

Cultivating talent and helping make rural China abetter place to work, study, and live
Rural commissioner uses lever of e-commerce to lift Xunwu out of poverty

For rural regions to prosper in the long term, they need healthy and self-sustaining economies. That

Xinxian Ge had worked at Alibaba for 17 years before

economic ladder. Success gives them a real choice to remain in their rural hometowns while enjoying a

Province. When he arrived in Xunwu, he brought his
experience with digital technology and market knowledge.
Xinxian identified marketing as a bottleneck for locals inselling their goods, so one of his main projects was tolivestreamers teach classes. As a direct result, more online
sellers and digitally savvy farmers have been popping up in
Xunwu. A livestream for the area's produce held by Xinxian

E-commerce provides opportunities for people in theirrural hometowns
Interactive livestreaming on Taobao has become an increasingly important sales channel for e-commerce.
It also provides a platform for rural entrepreneurs to develop into online influencers, who can not only
help themselves but often introduce their hometowns to the broader world in the process. Through ourHometown Initiative and our Rural Livestreaming Program, we have so far trained 110,000 people in rural
areas to be livestreamers, and conducted 2.3 million livestreaming sessions.

Employees

establish a livestreaming academy, where popular Taobao

good job and a better life.

Environment

becoming a rural commissioner in Xunwu county, Jiangxi

means giving employment and training opportunities to young people to help them move up theand a popular livestreamer gathered over 1.6 million views,
Consumers

helping locals to sell almost five tons of passion fruit andcementing a brand recognition among consumers.

Qinglong chestnuts and e-commerce pave a new path for rural women
Chestnuts are a popular local product in the vast growing area of Qinglong, Hebei. However, local

We have dispatched 160 "rural technology officers," as of November 2021, to seven underdeveloped counties infarmers had long been reliant on re-sellers for market access. With training from the Alibaba Foundation,

Shanxi, Sichuan, Hebei, Hunan, and Shaanxi to explore new methods for digitally-enabled rural growth. So far, they
have engaged in digital projects related to tree planting, tracking agricultural produce, digital governance, andcultural tourism.

the village has become a success story not just for e-commerce, but also for women's empowerment.
Due to traditional gender attitudes in Qinglong, most women stay at home. The first move of our ruralcommissioner Lin Liu was to create a business plan for using e-commerce to sell the local chestnuts.
She welcomed local women into a new livestreaming office, empowering many of them to introduce

promote rural China. Kang volunteered for the "rural technology officer" program and was sent to Qingjian
in Shanxi province. After surveying the area, he realized that its native high-grade, free-range black pigs had
untapped market potential. Kang created a "five million steps" branding concept that used a digital sensor system
to record each pig's lifetime steps. When the pork reaches Freshippo's store shelves, consumers can scan a uniquecode to access a host of information. This gave them confidence in the conditions the animals were raised in and“

Digitalization is not a vast gulf to be crossed, but it is instead the key towomen for being more independent, confident, and self-reliant.
Lin Liu, Alibaba rural commissioner

”

Trust

created a connection with the farmers of Qingjian.

600 local jobs for local women across the county, with an average salary of over RMB3,000 a month.

Philanthropy

Alibaba software architect Kang Han grew up in the countryside and has always wanted to find ways to help

themselves to the world, building their own brands in the process. Since then, the industry has created

Community

Through her efforts, the popularity of these chestnuts created a sensation throughout the province.

Rural technology officers helped build consumer trust and awarenesswith data

Small
Businesses

Rural technology officers

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Enhancing Community Inclusion and Resilience

One of the important programs by which we havebrought quality jobs to rural areas is through our Star

provinceshome. As of March 31, 2022, it has covered 45 counties

From education to healthcare, we are making efforts to develop local human capital, essential for the

By March 31, 2022, Star Plansites have been set up in 45
counties across 15 provinces.

in 15 provinces, helping 9,414 people, over half with
post-secondary degrees, to gain employment in theirlocal areas by FY2022. Under this initiative, more young
people have been able to realize their desire to findrural economy to grow in a sustainable manner.

Rural digital education
Investment in local education resources is a cornerstone of Alibaba's efforts. Over the past few years, we

9,414

direct jobs

have initiated a series of projects including our "Rural Education Plan" and "Vocational Training Plan," whichhave given 610,000 rural teachers and students additional training.

"Student Cloud Assistance" program to cultivate rural youths' digital capabilities

Employees

stable jobs without leaving their families.

By March 31, 2021, the Star
Plan provided 9,414 direct
jobs.

EnvironmentPlan, which helps rural talent find job opportunities at

15

Expanding opportunities in education and healthcare
to support long-term development

Executive
Summary

Creating quality rural digital job opportunities – the Alibaba "Star Plan"

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Chairman's
Letter2022

In 2021, we announced the launch of the "Student Cloud Assistance" program, which seeks to stimulate

In 2020, we pioneered the "Customer Service County" model in Xunwu, Jiangxi Province. This initiative aims tochildren's creativity and skills at an early age, and importantly, to improve their digital literacy. The program
builds a number of cloud-based computer rooms in rural schools to provide teaching support and foster aculture of digital knowledge and learning.

promote digital employment opportunities for young people in rural areas through training and job creation in thedigital service industry. As a result of this initiative, Xunwu has gained 200 direct jobs, with indirect benefits to the

Rural vocational education and training

the county. We have rolled out this program in over 45 counties.

Vocational education is an important path to bridging the necessary skills to promote employment andentrepreneurship. When well targeted, it can be of great help in narrowing gaps in opportunities and“incomes for regions and for individual beneficiaries. Since 2014, Alibaba has drawn on our strengths to

Small
Businesses

entire area. These are jobs that offer higher pay, secure benefits, and a professional life previously unavailable toConsumers

The digital economy brings professional local jobs to Xunwu

actively invest in fostering local e-commerce talents and regional e-commerce businesses. By April 2022,

150,000 attendances garnered by our training sessions mean a lot of new local digital talents.

"Orange Dot Students" program for rural vocational skills development
In 2021, Alibaba launched a vocational skills education platform known as "Orange Dot Students," aiming
to help local talent develop new vocational skills. The platform offers teacher training, student practicaltraining, skills certification, job recommendation, cooperative schooling, and provides high-quality
employment opportunities. The program has been initially implemented in the mountainous counties ofZhejiang and other less developed regions in China.

Trust

”

regional digital-talent training centers, with more than 800 online and offline sessions. To date, the over

Philanthropy

Lina He, Customer Service
Agent and Manager

we had worked alongside regional governments, enterprises, and local industrial parks to jointly build 71

Community

When I first joined the project, my idea wassimply to get a job. Then I realized that the longer
I stayed here, the more I was able to achieve andgrow at every step, starting from when I was on
the front line. I was also pleasantly surprised by
my salary. After I began managing the team, I
was surprised by my own growth. Now that I
am the leader of an entire site, I again surprised
others and myself!

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Executive
Summary

Helping to build up local healthcare capabilities
Rural areas must also close the gap in healthcare services. To address this, we are investing in rural medical
capabilities and also supporting the training of rural doctors and other medical professionals.

to set up 50 new clinics and provided equipment support to 574 rural clinics, which collectively serve over
680,000 people.

In January 2020, China's first county-level "Cloud Medical Platform" was officially launched in Tiantai
County, Zhejiang Province as a joint project by Tiantai County People's Hospital, Alibaba Health, and Xiniu
Medical. This digital medical platform is based around the county's main Tiantai County People's Hospital

Environment

Alibaba Rural Health Plan is one such program. Since the implementation of the plan in 2019, we have helped

Providing better patient care through services on the cloudand connects it with over 100 other medical establishments including township health centers andTraining rural medical expertise through our "Medical Butterfly" program
Alibaba Health has joined forces with the County Hospital Presidents Alliance, the Chinese Medical Association, and the

local residents, improving their experience. It also improves the governance and operations of Tiantai's
healthcare system.

Employees

village clinics. The system provides more professional and effective management of the health records ofChina Red Cross Foundation to launch a physician training platform. The project provides doctors in relatively underdiagnosis and treatment of common diseases, early screening for severe diseases, and improved standards of care for
acute and severe conditions. By March 2022, the project had reached 421 county-level hospitals and conducted trainings
for county-level hospital doctors that have registered more than 70,000 total attendances through interactive online

Consumers

developed areas with skills training and information resources, aiming to improve the capabilities of local doctors in theexchanges and teaching programs covering a wide range of specialized topics.
Small
Businesses

Community
Philanthropy
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Enhancing Community Inclusion and Resilience

Strengthening social resilience is now key to sustainable development. Alibaba seeks to build community resiliencein three important ways.
First, we ensure the resilience of our core systems in times of crisis, so that we can support the normal operation ofSecond, we actively coordinate our platform ecosystem and resources to aid in disasters.
Third, we work with stakeholders to develop joint solutions and enhance broader, durable societal resilience,developing a host of relevant technologies and sharing them widely.

We take potential natural disaster risks into careful consideration when designing and constructing our data
centers. We are actively innovating to increase the "disaster tolerance" and "fault tolerance" capabilities ofinfrastructure through the design of hardware facilities and the improvement of our overall planning.

Data center design for extreme conditions
On-site flood control and drainage

data centers can operate normally, even in

We make sure that our project sites are locatedoutages.

withstand extreme weather conditions that may
arise such as heavy rain, the rainwater in the site
can be drained quickly through multiple channels
pipes. This ensures the safety of the site.

Seismic resistance
We adopt the key fortification category (Class B)
in data center design, and raised the structural
seismic level to the first-class seismic standard.

Power resilience

Consumerssuch as drainage ditches, roads, and rainwater

extreme temperatures, high pressure, and power
Employees

above the historical flood high-water mark. To

Environment

the digital business ecosystem, which relies on our services, and to better support society after shocks.

Building resilience into cloud services

Executive
Summary

Digitalization to support community
resilience

Chairman's
Letter2022

Through contingency planning and theBoth natural disasters and global health crises can threaten the integrity of logistics operations, causing
supply chain issues that threaten economic production and people's lives. To protect the functioning of ourlogistics services during natural disasters, Cainiao has made extensive preparations, from the design of our

Community

Building resilience in logistics systems and operations

Small
Businesses

installation of backup generators, our Alibaba

emergency response mechanisms and resource allocation plans, to thorough employee training.

Cloud services and supply chain logistics are essential foundations of the digital business ecosystem. They are evenmore critical in times of crisis. We are actively carrying out comprehensive assessments of natural and technical risks,
taking seriously our responsibility to ensure stability and continuity in the core functioning of these facilities.

In line with national policies, we develop emergency response mechanisms for various intensities and typesof disasters, including earthquakes, typhoons, and heavy rains. Through rigorous training of our employees,
we ensure that in the event of a natural disaster, our team is able to rapidly respond to emergency situations.

Philanthropy

Ensuring the operational continuity of our digital
ecosystem's core capabilities

Cainiao has successfully built an extensive global logistics network with our international partners thatconnects hubs around the world through our smart digital technology. This network not only enhances ourTrustresilience as a company, but also enhances community resilience in response to disasters.

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Since the onset of the COVID-19 pandemic in 2020, supply chains have faced numerous challenges. Our first task has
been to protect our employees and their families, and then work to help the global community mitigate the impactof the public health crisis on livelihoods and the economy.

Helping global society combat public health crises
Donating medical supplies, services, and funds

Giving essential support to communities during the pandemic bymaintaining a well-functioning platform economy
The continuity of logistics services has been of utmost importance to Alibaba since the outbreak of the pandemic

donations, both in China and abroad. Through this initiative, we were able to successfully deliver batchesof ventilators and PPE to people in the United States, Europe, and elsewhere. In March 2022, Alibaba
Foundation also donated HK$10 million to Hong Kong to support the pandemic prevention efforts of medical
staff and provide them urgently needed PPE and other critical necessities.

Deploying advanced technology for pandemic relief

Shanghai, Shenyang, and other cities. We increased the number of pandemic relief public service warehouses andTo support COVID-19 research, Alibaba Cloud made its computing power available for free to publicprioritized the distribution of medical supplies and related resources. By the end of FY2022, Cainiao had opened

research institutions to accelerate the discovery of new drugs and vaccines. We also offered cloud-based AI

nearly 10,000 square meters of warehouse space devoted to public health supplies, dispatched delivery vehicles

technology applications developed by our research institute, DAMO Academy. This included our CT image

5,000 times, and handled the distribution of more than 30 million pieces of medical supplies, drugs, food, and otheranalytics solution to improve COVID-19 testing accuracy and detection efficiency, our pandemic prediction

urgent supplies.

solution model that helps predict the size, peak time, and duration of the pandemic in particular regions, andour genome sequencing solution to accelerate COVID-19 diagnosis. In recognition of its contribution, Alibaba

Aiding small businesses during the pandemic

DAMO Academy's Medical AI Team received the "National Exemplary Organization for Pandemic Response in

Alibaba also recognized that MSMEs often face greater risks from supply chain disruptions caused by the pandemic.

Science and Technology" award from the Ministry of Science and Technology.

proactively developed a great number of solutions to meet the needs of our MSME partners during these difficult
times.

加速新冠疫苗研发，向全球开放
AI 算力 COVID-19 research and development:AIcomputing resources to accelerate

Small
Businesses

These include helping them deal with fluctuating demand and blockages in financing and logistics. We rapidly andConsumers

necessities. Cainiao successfully deployed emergency logistics in Wuhan, Xi'an, Tianjin, Zhengzhou, Hong Kong,

Employees

in 2020. In cooperation with public agencies, we have strived to ensure that consumers are able to obtain daily

jointly established an information and logistics operation platform for medical supply procurement andEnvironment

During the pandemic, we set up a special fund to supply medical supplies. Alibaba Foundation and Cainiao

Fully supporting society to increase resilience and speed up recovery

Executive
Summary

Responding systematically to public health crises

Chairman's
Letter2022

Immediately after the COVID-19 outbreak, Alibaba Cloud opened up its AI computing power to all public
During the pandemic, Alibaba gave enterprises tools to continue operating, fromresearch institutions, schools, and medical institutions worldwide for virus analysis and vaccine research

our office collaboration suite DingTalk, to our online marketing and customer

and development, to help accelerate the research and development process of COVID-19 vaccines.

engagement through Taobao Live, allowing them to maintain or even expand
their businesses with increased digitalization of their operations.
We worked with ecosystem partners during the first critical months to advanceapproximately RMB130 billion in liquidity support to our merchants and to
facilitate over RMB12 billion in loans at preferential interest rates to MSMEs.
We worked hard to provide smooth logistics for merchants and other partners.

Supply-chain support

We developed AI-based technology to accurately detect virus mutations, substantially shortening
the duration of genomic analysis of suspected cases from hours to just 30 minutes. We provide freecomputational and AI platforms to research, analyze, and combat COVID-19 to support public disease
control centers and research institutions worldwide.

CT image analysis for more accurate patient diagnosis:
Alibaba's DAMO Academy developed an AI-enabled system that could diagnose COVID-19 in 20 seconds

Cainiao Network launched its "US $5, 10-day delivery" shipping service thatwith 96% accuracy. We made this service freely available to many hospitals and other medical institutions

reduced the delivery time of international parcels to under two weeks.

across the world.

Trust

For example, in 2020, while global logistics was still impacted by the pandemic,

Philanthropy

Financial support

Genomic analysis for COVID-19 mutation detection:

Community

Technological support

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Executive
Summary

Ensuring the flow of medical supplies globally through robust
logistics services
Cainiao's international logistic network continues to play an important role in maintaining the flow of essential

Environment

medical supplies around the world. Since the outbreak of COVID-19, we have helped to support global logistics
in three main areas:

Maintaining the flow of global medical supplies:
Cainiao opened an "emergency channel" for medical supply requests and donations quickly after the COVID-19
outbreak. Since that time, Cainiao has worked with 50 global logistics companies to help handle the delivery of

Employees

260 million medical items to 150 countries during the global pandemic effort.

COVID vaccine distribution to developing countries:
With pharmaceutical cold chain and temperature control technology, Cainiao took on the task of shipping vaccines.
Since March 2021, Cainiao has successfully shipped a total of more than one million doses of COVID-19 vaccines to El

Consumers

Salvador, Trinidad and Tobago, Kuwait, Suriname, and other countries in Asia, Africa, and Latin America.

Cainiao warehouse converted to a UN Humanitarian depot center:
Alibaba's DAMO Academy developed an AI-enabled system that could diagnose COVID-19 in 20 seconds with 96%
accuracy. We made its service freely available to many hospitals and other medical institutions across the world.

Pacific Stevie® Awards silver medal in the field of "Most
Valuable Enterprise Response" for its outstanding

Small
Businesses

In April 2022, Cainiao Logistics won the 2022 Asia-

global pandemic prevention efforts.
Community

Mr. Amir Abdullah, Executive Deputy Director-Generalof the United Nations World Food Programme

Trust

”

Philanthropy“

I want to thank Cainiao for its efforts to transport and deliver pandemic
prevention materials globally when the pandemic triggered trade disruptionsof international routes.

Environmental, Social, and Governance Report

Enhancing Community Inclusion and Resilience

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169// 176
170

Executive
Summary

Digital solutions for natural disaster prevention

Chairman's
Letter2022

We continue to deploy our digital technologies to help societies build resilience through improvements in
disaster response, recovery, as well as preparation at various levels.

Improving flood response andrecoveryAlibaba's DAMO Academy applied advanced AI

We actively apply our digital capabilities to address

work of the Ministry of Water Resources. The tools

flood risk management. We initially adapted existing

significantly improve timeliness and effectiveness intools in flexible "plug-and-play" ways to help flood

key flood risk management processes, and have been

prevention and disaster relief. We have now establishedused by the Water Control Authorities in Jiangxi andstrategic cooperation with several provinces to explore

Anhui provinces.

Environment

Assisting flood response with our digital technology

technology in radar image analysis and developed
an online tool to support the flood-level monitoring

Employees

and jointly develop more robust digital solutions for

Figure: Poyang lake flood imaging and analysis, with
Haifeng Zhan, from Taiyang town in Hangzhou, shows her digital safety code.

the red areas signaling rises in the water level.

Diverse products and services assist disaster risk management
Automated flood warning bot

DingTalk Flood Control

Beyond research and development in disaster response tools, wehave made use of our diverse ecosystem of products and services

We also apply our digital technology to help the public sector

Henan Flood Relief

better manage disaster risks. In 2019 we helped build a platform

RMB

In July 2020, Alibaba Cloud

In July 2020, Alibaba developed

created a prototype productdonated an "intelligent flood

the flood control custom solution

for the Zhejiang emergency

bot" to the Jiangxi Provincial"DingTalk Flood Control," which

management platform. The

Department of Water Resources

was first launched in Hubei,

digital platform supports afor evacuation notifications

Jiangxi, Zhejiang, and othermini-app through whichand emergency rescue in times

provinces to support cross-for the Ministry of Emergency Management's flood control efforts,

residents can receive aof flood. Based on Alibaba

departmental coordination inwith disaster mapping, monitoring, command-and-control, andpersonalized code. In the event

Cloud's automated outboundflood control and flood relief work.

of disasters such as typhoons

call platform, the bot can makeinvestigation capabilities. This platform has helped the Ministry

and floods, the population in

automated voice calls andthe evacuation zone receives

reminders to quickly reachalerts in the form of a red code.

a large number of people

Residents can also use the codefor evacuation, and assist in

to enter disaster shelters anddirecting nearby rescue workers

emergency response smart system and further modernize their

apply for relief assistance.

to trapped individuals.

emergency management capabilities.

100 million

to address emergencies ranging from floods and earthquakes

Shanxi Flood Relief

to gas explosion accidents in a number of provinces. In October

RMB

2020, the Ministry of Emergency Management and Alibaba Groupsigned a strategic cooperation framework agreement to build an

30 million

Philanthropy

In June 2020, Alibaba Cloud

Community

supply of relief materials in a number of disaster scenarios.

In FY2022, Alibaba
Foundation gave:

to ensure the rapid sharing of disaster relief information and the

SmallBusinesses

Zhejiang emergency
management platform

Consumers

flood risk control.

TrustEnvironmental, Social, and Governance Report

Facilitating Participatory Philanthropy

180
171 // 181
172

Chairman's
Letter2022

Executive
Summary
Environment
Employees

involve those across our entire ecosystem to "make it easy to do good anywhere" within∙ Technological innovations for social challenges∙ Empowering charities with technology∙ Participatory philanthropy through our platforms

Philanthropy

participatory philanthropy that starts with our own employees and expands outward to∙ Philanthropic participation of all employees

Community

to bring people together to tackle our common challenges. We seek to foster a

We work on four levels:

Small
Businesses

As a builder of sustainable community, we strive to unleash the power of technology

Consumers

Facilitating
Participatory
Philanthropy
and beyond the confines of our business.

TrustEnvironmental, Social, and Governance Report

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174
182

Every employee participates
At Alibaba, we try to build a culture where everyone regularly participates in philanthropic activities. In
FY2022, we donated RMB550 million to the Alibaba Foundation for charitable causes. Back in 2015, welaunched our "Three Hours for a Better World" initiative to ask all Aliren to dedicate at least three hours per

social responsibility, to channel their talents andcreative thinking to tackle societal problems. As

and Help" umbrella. Founded in 2010, "Hugs and Help" groups now cover a number of fields including
environmental protection, animal protection, support for senior citizens and vulnerable groups, andchildren's education, among others.

Environment

year to social causes outside work. Aliren also band together in groups to work on a cause under the "Hugs
We want all Aliren, guided by their empathy andExecutive
Summary

Philanthropic
participation of
all employees

Facilitating Participatory Philanthropy

Chairman's
Letter2022

such, we have devoted significant efforts to build asystem that inspires them to become involved andcauses beyond the business.

Employees

allows them to participate in many ways in social

Aliren give care and support to the children of Daliang Mountain
Many children in the remote Daliang Mountains of Sichuan are so-called left-behind children, whose parents
migrated to cities for economic reasons. The kids often face economic hardships and lack enough adult roleto Kids in Daliang Mountain" project two years ago. Chunying's initiative has encouraged over 400 Alibaba
employees to join and collectively give loving support to some 260 children. These volunteers help arrange
regular deliveries of daily necessities, provide tuition assistance, and keep in touch with the children through a

Consumers

models. Chunying Liu, a tech professional at Alibaba who was touched by their needs, started the "Letter

personal penpal system.
Small
Businesses

that when I grow up I can be like you and also help others. Winters
won't feel as cold that way.
Lihua Jin, a 4th grade student from Daliang Mountainin the letter to her Aliren penpal”

Community“

The winter here is freezing, but I feel warm reading your letter. I hope

Philanthropy
TrustEnvironmental, Social, and Governance Report

Facilitating Participatory Philanthropy

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176
184

Executive
Summary

Employees lead our philanthropy
Alibaba welcomes employees to take on more responsibility in many of our philanthropic efforts, contributing theirinsights on how to best leverage our technology and businesses to catalyze positive social change. A decade ago,
Alibaba established a unique system through which every three years our employees elect a philanthropy committeeof ten people from their own ranks. These "Alibaba philanthropic partners" actively collect feedback through daily

2022 Alibaba Charity List of best projects:"Digital Sign Language Interpreter"
People with hearing impairments encounter daily communication challenges. A team at DAMO Academy
worked together to create the "Digital Sign Language Interpreter." DAMO used 3D technology to create a virtual
sign language interpreter, "Xiao Mo," who translates spoken sentences into sign language on screen. Because

Environment

engagement and regular communication with their peers and represent employees in discussions on the direction of
Alibaba's philanthropic efforts.

Chairman's
Letter2022

sign language is comprised of subtle gestures and regional differences, it remains a technical challenge that
requires continuous effort to develop and improve.
Employees
Consumers
Small
Businesses

Recognition and support
The "Alibaba Charity List" was set up to recognize and reward

Community

outstanding internal teams, individuals, and projects thathave made significant contributions to the public good. This
year's recognitions focused on three categories: "Addressing
Society's Most Pressing Issue," "Most Social Impact," and the"Most Technologically Innovative." More than 300 internaland valuable public service projects and recognized 14
individuals. Alibaba helps incubate some of the best projects
by setting up a RMB100 million fund. Through these mutually
supporting programs within Alibaba, we are dedicated toensuring our charity programs can grow and help thesecan join and be inspired.

Alibaba projects
recognized as themost touching andvaluable

14

individual
charity stars

Trust

projects attract internal attention so that like-minded people

10Philanthropy

and external judges selected 10 of the most touchingEnvironmental, Social, and Governance Report

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178
186

Facilitating Participatory Philanthropy

Education for drug abuse prevention

Technology philanthropy has become an important part of Alibaba's ESG strategy
and is one of the main means for us to devote ourselves to public well-being. We
are promoting technologies that "benefit everyone, are responsible, and are open
and shared." We believe there is a lot of potential for technology firms to fulfill theirsocial responsibilities.

Li Cheng, Chief Technology Officer of Alibaba”

Many of the world's problems remain unaddressed not only because of a lack of resources, but because of a lackof information flow, coordination, and public awareness. We are well positioned to help various public service

In October 2017, Alibaba devoted funding, staff, and technological resources to developing a platform foronline drug-use prevention education to reach students in schools. This online education system "Green
Bridge Second Classroom" went online in June 2018, and by June 2022 it covered 31 provinces, municipalities,
and autonomous areas, reaching 230,000 elementary and middle schools. About 106 million students haveparticipated in over 900 million hours of online classes learning about the dangers of drug use. In June 2020,"Green Bridge Second Classroom" was awarded as a National Exemplary Organization in Anti-Drug Efforts.

coordination in this critical effort.

Employees

groups to address these issues to maximize their effectiveness. By sharing our technologies and know-how inareas such as data gathering, data processing, and visualization, we help improve information flow and resource

By June 2022

missing children. To address this problem, Alibaba helped build the "Reunion System." When a new case of a
missing child is reported by authorities, the Reunion System broadcasts the child's information across 25 popular
apps to users who are near the child's last known whereabouts, with the alert radius expanding 100km with eachassisted in the recovery of 4,960 of them. In the last program year alone, we assisted in the recovery of 253 missing
children.1 Nearly 200 Aliren from across 16 business units voluntarily devoted their skills and time to developing andmaintaining the system.

provincial
administrative
regions

schools

Green Bridge Second Classroom covered
31 provinces, municipalities, andautonomous areas, reaching 230,000
elementary and middle schools.

Child’s last known
whereabouts

children who have been missing
for longer periods. We launched

100km within
1 hourthe Amap "Family Search" function

200km within
2 hours

collection points across the country
matches. "Family Search" has5,038

missing children cases
300km within
3 hours

helping in recovery ofhelped in the recovery of more thanten thousand missing children.

the Reunion System had
sent out alerts for

400km within
4 hours

million900
million

About 106 million students haveparticipated in over 900 million hoursof online classes.

Trust¹ The time period of the latest program year was from May 16, 2021 to May 15, 2022.

4,960

106

Philanthropythat help to perform genetic

As of May 15, 2022

Community

We also run a parallel effort forthat displays the 5,005 free blood

Small
Businesses

passing hour. As of May 15, 2022, the Reunion System had sent out alerts for 5,038 missing children's cases and

31 230,000

Consumers

Technology for recovering missing children
For certain social issues, spreading information quickly is crucial. This is exemplified by the distressing cases ofEnvironment“

Executive
Summary

Technological innovations forsocial challenges

Chairman's
Letter2022

Environmental, Social, and Governance Report

Facilitating Participatory Philanthropy

Empowering charities with technology
societal change. Therefore, we are committed to augmenting their capabilities by sharing free, accessible, andaffordable technological solutions and services.

"Charities on the Chain" tracks the flow of donations
for fundraising trust
We are helping non-profit organizations improve transparency in their operations so as to build publictrust and boost fundraising. To do so, we shared our blockchain technology to establish a public-service
Foundation launched the first group standard in China for "Public Service Blockchain Technology and

Trust

Innovation

In 2017, Alibaba Cloud engineers created a technical volunteer service platform, "Green Code," to help non-profits
with technical needs connect with skilled tech volunteers. As of the release date of this report, more than 330 nonprofit organizations and more than 6,000 volunteer programmers have registered. In 2021, Alibaba collaborated with
19 non-profit organizations to jointly launch the "Green Code Camp Low Coding Challenge." Over 300 tech volunteers
projects, supporting the digital transformation of these organizations.

donation allocation.

Support program for philanthropies
Since March 2021, our "XIN 100" program has sought to provide all-around support to nurture and assist
philanthropic projects whose work aligns with Alibaba's ESG and philanthropic priorities. At this stage,
we have set five major areas for "XIN 100" to target: rural revitalization, care for seniors and people withdisabilities, helping children, environmental protection, and safety and emergency response. "XIN 100"
aims to identify at least 100 major projects every year and bring together a wide range of resources tofacilitate their implementation. In FY2022, the "XIN 100" project supported a total of 85 projects from 49
charitable organizations.

Consumers

used simplified and easy-to-manage software code to develop management applications for over 20 charity

had been registered on the system. This facilitates trust-building by ensuring the transparency of each

Employees

Connecting charities with tech know-how

Application Specification." As of March 2021, every public charitable donation via Alibaba platforms

Environment

standard for tracking donations. During the 2020 International Week of Charity in September, Alibaba

DigitalExecutive
Summary

Alibaba recognizes the critical role of non-profits and social entrepreneurs in driving wider and positive

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180
188

Chairman's
Letter2022

Streamlining the Amity Foundation through the power of code

600 partners and benefited over 10 million people. However, it was still relying on traditional time-consuming officeprocesses such as manually filled Excel spreadsheets. Digitization enabled by our "Green Code" platform streamlined

Small
Businesses

The Amity Foundation, established 36 years ago, is an influential public fundraising charity, which has worked with overtheir processes, increasing operational efficiency, and freeing up time for their most important work.
Community

Philanthropy
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182
190

Facilitating Participatory Philanthropy

Alibaba's spirit of philanthropy reflects the saying "many hands make light work." As a platform operator, wehave the unique ability to develop this type of philanthropy by leveraging our platforms to build volunteering

to go from being just a donor to building up our own philanthropic creed byconnecting with charitable causes that share common inspiration with us.
Xiaochun Hua, Head of Philanthropy at Florasis”

By integrating commerce, technology, and philanthropy, the program is convenient for donors and makes
it easier for participating charities to not only raise new funds but to familiarize new donors with theirorganizations and projects. Over the past 15 years, more than 8 million merchants have participated in the
program, with 47.3 billion orders channeling charitable proceeds to programs that have benefited 43 million
people. In FY2022 alone, the program saw more than 500 million consumers and 2.2 million merchants
participating.

The "Companion Mother" project was started by the China Foundation for Poverty Alleviation in order to

Employees"Goods for Good" program helps "left-behind" children

Environment

and funding channels that rally everyone together and embed social consciousness in everyday life.

“

The 'Goods for Good' Program offers merchants like us a great opportunity
Executive
Summary

Philanthropy for everyone throughour platforms

Chairman's
Letter2022

provide more adult influences for "left-behind children" whose parents migrated to cities for jobs. The project
operates on the principle of "one mother; one family; one bond," whereby professional full-time "mothers"
sources. To support this project, Tmall's childcare products channel provided fundraising via the "Goods forGood" program. For every item purchased through the channel that is marked with a "Companion Mother"label, a small portion of the proceeds goes towards the "Companion Mother" project. Over RMB10 million

Consumersin each village coordinate the creation of a supportive "family" unit using funds from the project and otherwas raised for the project in two years, supporting the creation of sponsor "families" in over 200 villages, andCommunity

Platform-based innovations in participatory philanthropy

Small
Businesses

improving the lives of nearly 170,000 children.

Fundraising is a perennial challenge for many
charities, while the public often perceives a lackof convenient and credible channels to makedonations. Alibaba's "Goods for Good" is one
merchants the ability to designate and label
selected products where a portion of proceeds
goes to a verified charitable cause. In line with ourparticipatory approach, this "check-out" donation
program aims to integrate social consciousness into
in a transparent way.

47.3 billion

Inspired by the "Companion Mother" project, Alibaba and other merchants on our platform began to focus

helped by projects
funded by the programcharitable orders

products channel led hundreds of thousands of sellers to start the "China Mothers' Philanthropy Initiative,""Goods for Good" donations since inception

on how to help left-behind rural mothers and children more generally. On April 15, 2021, the Tmall childcare
bringing together the resources of the China Foundation for Poverty Alleviation, the Amity Foundation, theChunhui Children's Foundation, and other organizations to gain supports for pregnant mothers and children
under fourteen in underprivileged areas.

Trust

regular shopping and touch a wide swath of people

43 million people

Philanthropy

program that targets both problems by giving

Environmental, Social, and Governance Report

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184
192

Diverse opportunities for philanthropic participation
The "Three Hours for A Better World" public service platform opens up a variety of ways to engage citizens insocial causes, such as volunteering, livestreaming for fundraising, blood donations, and charitable purchases
or direct giving. The platform has specific programs to tackle pressing issues such as poverty alleviation,

Pack Project" to send care packages with useful school or household items to children in less developed countries.

environmental protection, and pandemic relief. For example, our initiative "Purchase to Help" promotes

As of this year, the project has already received over 2.6 billion individual donations. A total of RMB128 million

sale of rural products from poorer regions. Through these programs and more, we have made it easier forfrom "Goods for Good" have been raised for programs in Myanmar, Nepal, Ethiopia, Cambodia, Laos, Pakistan,

individuals to do daily acts of good, already with more than a billion instances of participation.

Namibia, Uganda, Mongolia, the Philippines, and Zimbabwe, benefiting over 1 million children. The "Panda Pack
Project" is one of the largest international charitable initiatives organized by the non-government sector in China.

Encouraging and recognizing participation

Practices (Second Call).

Alibaba wants to make it easy not only to give opportunities for public service but also give recognition forsuch service. We have developed a personal "charity account" that is the only one currently authorized by
China's National Civil Affairs Department. We worked with Zhejiang province to launch a charity account forthe province. Users can upload, track, and verify their public service across different projects and charities,

Employees

In 2021, it was recognized as the best poverty relief case at the Global Solicitation on Best Poverty Reduction

Environment

In 2019, the Alibaba Foundation and the China Foundation for Poverty Alleviation jointly launched the "Panda

Executive
Summary"Goods for Good" sends "Panda Packs" to support children in less developed countries

Facilitating Participatory Philanthropy

Chairman's
Letter2022

with the potential to obtain rewards and incentives for their service. We are also working in cooperation
with over ten fundraising charities, including Easy Philanthropy and Moving Together, to jointly develop
Hangzhou Philanthropic Association.

"Donating Footsteps" on our Taobao app is all it takes to help nurture a potential Olympic athlete. On June

To encourage wider public participation in philanthropy, especially beyond just donating money, we have23, 2021, the Winter Olympic Organizing Committee, together with the Alibaba Foundation and the China
Poverty Alleviation Foundation announced the "Saving Every Loving Step" 2022 Beijing Winter Olympics
philanthropy project. Volunteers who tracked their daily step count were able to accumulate funds to build
running tracks at rural schools. By March 2022, over 150 million people had taken part.

Community

Engaging the public in diverse forms of philanthropic
participation

Small
Businesses

Transforming footsteps into running tracks for young athletes

Consumers

the Guidelines on Measuring Charitable Contribution with the Chinese Volunteer Organization and thefurther leveraged our platform to offer the public rich and diverse opportunities to participate in philanthropy.

Following the success of our internal "Three Hours for A Better World" for Aliren, we expanded the program
to the general public on China Charity Day in 2017. Four years later, the program saw more than 150 million

Philanthropy"Three Hours for a Better World"
becomes an open platform for social goodregistered participants. Through this program, different charity organizations and public service programs are
Trust

now getting connected directly with people who want to help.

Environmental, Social, and Governance Report

Building Trust

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Chairman's
Letter2022

Executive
Summary
Environment
Employees
Consumers
Small
Businesses∙ Building corporate trust

Being a company that earns the long-term trust of corporate partners and society is∙ Building social trust

Community

Building TrustWe achieve these goals by:an essential prerequisite for us to fulfill our social responsibilities. To build corporate
overseen by an effective, transparent, and diverse corporate governance structure. To
build social trust, we advocate ethical technology, and in particular we are dedicated toPhilanthropy

trust, we observe ethical business practices and comply with all applicable regulations,advancing privacy protection and data security capabilities.
TrustEnvironmental, Social, and Governance Report

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187
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Building Trust

Building corporate trust
The Alibaba PartnershipTo achieve our mission, building a first-class corporate governance system is just as important as building first-

purpose of the partnership is to ensure the continuation of Alibaba's mission, vision, and values.

After years of exploration, we formally established a partnership system for Alibaba in 2010. The
Pursuant to Alibaba Group's Articles of Association, the Alibaba Partnership has the exclusive rightefficient, and can most effectively safeguard the long-term interests of all stakeholders.

to nominate or, in limited situations, appoint up to a simple majority of the members of our board of

Alibaba Group's board of directors

independent directors, four are nominated by the Alibaba Partnership, and the remaining director is

directors, which has not been exercised to date. Currently, among our 12 board members, seven are

Alibaba Group's board of directors currently comprises 12 members, including 7 independent directors and 3 female

nominated by our major shareholder.

with the ongoing diversification of our business. Our board members possess rich professional backgrounds andAlibaba Group's sustainability governance structureindustry experience in fields such as retail, computer science, electrical engineering, economics, legal, and business,

We have set up a three-layer sustainability governance structure.

among others.

Alibaba Group's board oversight structure
diversity, and professionalism. Alibaba Group's board of directors currently maintains four committees, including:Compensationcommittee

Nomination andcorporate governancecommittee

Sustainability
committee

Chaired byan independent director

Chaired byan independent director

Soon to be chaired byan independent director

Chaired byan independent director

67%

67%

by Jerry Yang. The sustainability committee supervises and leads ESG efforts
across Alibaba Group. Its responsibilities include identifying and assessing
ESG opportunities and risks, ensuring robust formation and implementationof ESG strategic goals, and reviewing ESG-related disclosures.

Sustainability
steering
committee

Under the supervision of the sustainability committee, we have establisheda sustainability steering committee (SSC) that is tasked with planning andimplementing Alibaba's ESG strategic goals.

50%

independent directors1

independent directors

independent directors

Responsible for managing
and overseeing auditing
processes and financial
reporting by both internaland external teams, aswell as approving related
party transactions, handlingcompliance-related internalreports, and supervising
Alibaba Group's risk
management.

Responsible for evaluatingcompensation policies,
reviewing the performanceof directors and executives,approving executive
compensation, andadministering our equity
incentive plan.

Responsible for nominating
directors other than thosenominated by the Alibaba
Partnership, and reviewing
the composition of the boardof directors. The committee isalso responsible for corporate
governance and compliancematters.

Responsible for overseeing
Alibaba Group's ESG
work, which includes
identifying and assessing
ESG opportunities and risks,
ensuring robust formationand implementation of ESG
strategic goals, and reviewing
ESG-related disclosures.

The ESG working group is composed of representatives of various business

ESG
working
groupunits, and a designated ESG strategy and operations department. The
ESG working group is led by the SSC and coordinates with business units
to ensure effective accomplishments of ESG strategic goals. It builds andmaintains an ESG monitoring system to measure progress.

In the meantime, our Working Environment Committee, Risk Management Committee, and Science andCompensation committee will soon be comprised 100% of independent directors.

areas into Alibaba's core operations. Details on the latter two committees are presented later in this chapter.

Trust

Technology Ethics Governance Committee are also responsible for integrating ESG goals within their respective
1

Philanthropy

independent directors

Community

100%

Board
sustainability
committee

Small
Businesses

Audit committee

Our board of directors has established a sustainability committee, chaired

Consumers

With respect to our board of directors, our overriding goal is to maintain effectiveness, independent representation,

Employees

directors. The board is diverse in terms of gender, culture, professional expertise, and other dimensions, in concert

Environment

class products and services. A proper governance system leads to decisions that are compliant, professional,

Executive
Summary

Maintaining an effective and professional corporate
governance system

Chairman's
Letter2022

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189
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Building Trust

Risk management system

Executive
Summary

Alibaba Group Risk Management Organizational Structure
Alibaba Group CEO

Our risk management structure consists of the Alibaba Group Risk Management Committee, the Office of
Alibaba Group Risk Management Committee, the professional functions "middle office" teams, and the

Alibaba Group Risk Management Committee

business unit risk management teams.
Chief Risk
Officer(Chairman)

GeneralCounsel(ViceChairman)

Chief
Financial
OfficerPresidentof Integrity
ComplianceDepartment

President of
Public Affairs

President of
Public Relations
and Customer
Communication

Chief
Technology
Officer

Alibaba Group's Risk Management Committee (hereinafter "Risk Management Committee") is directly led by
Alibaba Group's CEO, and is the highest supervisory and decision-making body of Alibaba's risk management

Committee management officesystem. The Chief Risk Officer currently serves as the chairman of the committee, the General Counsel serves as

Delegates of committee members

the vice chairman, while other members include Alibaba Group's Chief Financial Officer, Chief Technology Officer,

The main responsibilities of the Risk Management Committee are to, at the group level, build risk management

Professional functions departments
middle office teams

Business unit risk management teams

Legal &
compliance

Public affairs

Taobao & Tmall

Local Life

Freshippo

supervises and evaluates the implementation of risk management measures. We have released the Alibaba

Integrity
compliance

Finance &internal control

Technology

Cloud &
Technology

Amap

CainiaoGroup Risk Management General Guidelines, which specifies our risk management principles, the rights andPublic relations and customer communications

risks of Alibaba Group. Furthermore, the committee develops corresponding risk management strategies, andOther business units

responsibilities of each risk management organization, and the risk management requirements for each unit.
We also train our employees on risk awareness and risk management capabilities through a layered
The Alibaba Group Risk Management Committee holds a monthly decision-making meeting for timely

mechanism so that all employees of the group can contribute to risk prevention and management. At

committee reports on Alibaba’s risk management work and progress to Alibaba's CEO.

channels to support employees to report risks proactively.

The management office

At the same time, this risk management system, together with our internal and third-party audit

The management office of Alibaba Group Risk Management Committee is responsible for the construction of

mechanisms, forms a "three lines of defense" mechanism of risk management and control. We

Alibaba Group’s risk management system, major risk identification and governance, supervision and evaluation

have established Alibaba Group's digitized enterprise risk management system, which provides risk

and other risk related work.

visualization and current status reporting of important risk governance and management assessment
to help the Risk Management Committee make efficient decisions.

Three Lines of Defense

Each of our professional functions departments' middle office is tasked with risk management responsibilities,
with the presidents of each department ultimately responsible for managing risks. This layer is a crucial
Committee to carry out risk management duties.

Business unit risk management teams
Each of our business units has their own risk management responsibilities, with the presidents of each business
unit serving as the primary leader of risk management. The business unit risk management teams work closelywith the Risk Management Committee in performing evaluation and supervision of risk management activities,

2nd Line

3rd Line

Operations and management

Risk management

Independent audit
and integrity investigation

The first line of defense
consists of the management
teams at each business unit
and is responsible for daily risk
operations and management.

The second line of defense
consists of Alibaba Group'sfunctional teams, who
design and implement risk
management strategies andbuild the internal assessment
and control systems.

The third line of defense
consists of internal audit,
as well as the Integrity
Compliance Department tomake independent evaluationsof the effectiveness of risk
management.

Trustbuilding the risk management systems for the business, and enforcing risk governance.

1st Line

Philanthropy

component of the risk management system at Alibaba Group, working closely with the Risk Management

Community

the same time, all the professional functions of the Alibaba Group have set up internal risk feedback

Small
Businesses

discussions and decisions on group risk matter. Special meetings are called to deal with urgent risk issues. The

Alibaba Group professional functions departments' middle office teams

Consumers

Riskmanagement

mechanisms, improve risk management systems, formulate risk management strategy, and identify the major

Employees

President of Integrity Compliance Department, President of Public Affairs, and President of Public Relations.

Environment

Alibaba Group Risk Management Committee

Chairman's
Letter2022

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Building Trust

Chairman's
Letter2022

Our legal compliance team routinely conducts anti-

their work with compliance, integrity, and in good faith. We are equally committed to ethical practices that

corruption risk assessments according to relevant

maintain fairness, trust, and openness on our platforms and beyond.

laws. The legal compliance team determines

Anti-corruption

the level of anti-corruption risk and formulates

Since 2009, we have successively formulated a set of rules such as the "Alibaba Group Code of Business Conduct,""Alibaba Group Employee Disciplinary Guidelines," "Alibaba Group Conflict of Interest Guidelines and Interpretations,""Alibaba Group Gifts Handling Guidelines," and the "Alibaba Group Anti-Bribery and Anti-Corruption Policy." These
codes and policies give guidance to employee behavioral norms and facilitate the company’s integrity culture. These

Management system
At the management level, we have set up an independent Integrity Compliance Department, which is responsible forcorresponding measures.

100%

In addition, we believe that strengthening daily
education and training is the best way to manage
risk. Therefore, we require all board members andAlibaba employees to complete the certification
exam for the Code of Business Conduct and attend

Integrity training attendance reached100% for all board of directors andemployees.

100%

integrity compliance training every year.

corruption investigations, prevention, and educational training. The Integrity Compliance Department reports directly

Employees

requirements are constantly updated and optimized in accordance with compliance requirements and business needs.

Code of Business Conduct and Ethics
training attendance reached 100% for
all board of directors and employees.

Environment

Upholding a high level of business ethics is a requirement for every employee, who must commit to conducting

Executive
Summary

Ethical business conduct

to the Deputy Chief People Officer of Alibaba Group. It also maintains functional independence from other risk
defense mechanism in which functional units can cooperate with each other.

Fair competition

We also incorporate the integrity of the team into the performance appraisal of each business manager. In the

We are committed to being a market enterprisecompliant culture through continuous training andthat respects, advocates for, and embraces faireducation.

"Alibaba Group Code of Business Conduct" and other internal policies, we require the accountability of managers if

competition. With the accelerated development
regulations related to the platform and social

own management and operation, it is also our

responsibilities are constantly in development. We

responsibility to guide the tens of millions ofsincerely embrace these positive changes, and hopemerchants on our platforms to operate in compliant

to work with all sectors of society to jointly promoteways, compete fairly, and protect the welfare ofand reported content remain confidential within the scope permitted by laws and regulations.

the shared progress of the digital age.

consumers. We provide merchants with digital

Audit processes

In September 2021, we formulated the Alibaba

marketing activities in an effort to help them conduct

Every quarter, the Integrity Compliance Department discloses fraud cases to our external auditors, carries out follow-

Group Competition and Compliance Regulations

multi-dimensional compliance management.

up risk management, and responds to questions from our external auditors. In addition, the department reports towhich aims to create the organizational structure

the audit committee quarterly on fraud cases and its management of other major risks. The anti-corruption audit isand culture for compliance and support for our

Based on the spirit of open cooperation, we hopecarried out by the legal compliance team. In the meantime, we conduct external audits according to relevant laws. In

businesses regarding competition policy. Our efforts

to help build a fair, orderly, open, and inclusive

FY2022, we handled internal investigations of 82 corruption cases and 36 public lawsuits involving employees.

include setting up organizational support structures

platform business environment, and actively

Finally, we encourage all employees, business partners, and the public to report instances of corruption and fraud
involving Alibaba personnel. We have established many reporting channels, including the official website anddedicated e-mail accounts, and hotlines, among others. We also ensure the whistleblower's personal information

compliance tools in their product management andsuch as dedicated teams with professional staff,

promote interoperability with various platforms todesigning a competition compliance system, creating

spur innovation, creating opportunities to enable all

Our Integrity Compliance Department regularly assesses the risk level of different positions in business departments.

risk controls to embed evaluation, and monitoringof society to enjoy digital dividends.

They strengthen anti-fraud and anti-corruption education for those in high-risk positions in business units and promote

for competition risks. We maintain a competition

regular job rotations and separation of powers and responsibilities to reduce the risk of fraud and corruption.

Trust

Risk assessment

Philanthropy

As a platform enterprise, in addition to our

Communityof the digital economy worldwide, new laws andperformance indicators in the company's internal management.

Small
Businesses

fraudulent accidents occur in their teams. These efforts make corruption prevention and anti-corruption results coreConsumers

control departments such as internal audit and internal control of Alibaba Group. This setup forms a multiple lines ofEnvironmental, Social, and Governance Report

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Building Trust

Building social trustTechnology needs to be ethical and responsible in order to earn the trust of the public. This year, we established(CAICT). The white paper will explain in detail enterprise-level artificial intelligence governance systems for

our Science and Technology Ethics Governance Committee (hereinafter the Ethics Committee), led by Cheng Li,

sustainable development and continue to emphasize the ethics of artificial intelligence and its governance,

Chief Technology Officer of Alibaba Group. The establishment of the committee elevates our technology andcovering topics such as data security and privacy protection, consumer rights and fairness, deep synthesis

science ethics and governance for the development and deployment of technology. The committee's aim is togovernance, and autonomous driving safety, among others.

Development Practice" white paper with the China Academy of Information and Communications Technology

ensure that technology always serves to advance the well-being of society at large and follows principles ofbeing "available, reliable, credible, and controllable."《人工智能治理与可持续发展实践白皮书》

Environment

In September 2022, we will jointly release the first "Artificial Intelligence Governance and Sustainable

Executive
Summary

Science and technology ethics governance

Chairman's
Letter2022

Deep synthesis governance
Data security and privacy protection

Autonomous driving safety

Technology

Credible

Small
Businesses

Reliable

Consumers

Consumer rights and fairness

Employees

Available

Community
Philanthropy

Controllable

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Building Trust

For Alibaba, the fundamental prerequisite for earning the trust of our service providers, customers, and other

Security technology and capacities

stakeholders hinges on how we protect their privacy and secure their data. This is why privacy protection andPrivacy protection and data security are not guaranteed by any single technology but should bedata security are a cornerstone of our ESG strategy.

Executive
Summary

Privacy protection and data security

Chairman's
Letter2022

considered as a sophisticated interconnected system that requires careful design. We have built a full

We launched China's first Data Protection Initiative as early as July 2015, advocating for various cloud providers,
including Alibaba Cloud, to adopt and follow these three principles to protect the privacy and security of ourbusiness customers:

where we control the security risks through securing the storage, network, and computing, and then our
PaaS (Platform as a Service) and SaaS (Software as a Service) layers to create a trustworthy and secureenvironment. We have taken measures in these areas.

Data storage and protection

Cloud computing platforms have the responsibility and obligation to help ensure
data confidentiality, integrity, and availability for customers. We store customer
data in their selected data center, and protect their business information inaccordance with the applicable legal provisions.

To provide an extra layer of security against

backup and off-site data backup. We back up

attackers and eavesdroppers, we encrypt the

network data to local storage in real time, anddata transmission process on the cloud. For

regularly back up important network data to off-

this data transmission encryption on the cloud,site storage. We use auto-recovery, encryption, andwe protect not only the data "warehouse" butother procedures to ensure data writing stability,

also the data "logistics," meaning the content

storage media management, and redundant datadelivery network (CDN). Alibaba Cloud has

backup protection, and have established a complete

more than 2,800 CDN nodes, covering 34

cloud data redundancy mechanism to ensure thatprovincial-level regions in China and in six

customers will not lose their data, ensuring resilience

continents around the world, with industry-in case of accidents or malicious attacks.

leading performance.

Computational security
Creating a trusted computing environment from hardware to software is another security mechanism
we implement to guarantee the inviolability of computing security for our clients. As early as 2018, wereleased the trusted cloud hardware security architecture, becoming the earliest cloud vendor in the

We provide customers with a full range of data protection through confidential computing capabilities
across three layers: hardware, virtualization, and application. We also deploy a variety of automatedprotection tools.

Alibaba Cloud helps the 2022 Beijing Winter Olympics run on the cloud
Alibaba Cloud undertook the historic assignment of supporting the first fully cloud-based WinterPhilanthropy

On Alibaba Cloud's computing platform, customers fully own their business data,
as well as the ownership and rights of their user data. Alibaba Cloud strictly
executes customer instructions to process their business data, and will not makeany unauthorized use or disclosure, except in accordance with customer agreement
or for the need to implement legal and regulatory requirements.

Community

Asia Pacific region to build trusted computing and confidential computing.

Your data is protected

Small
Businesses

You manage your data

We adopt the strategy of combining local data

Consumers

Data of developers, companies, governments and other institutions being stored
and processed on cloud computing platforms shall be owned by the customers. The
cloud computing platforms shall not use such data for other purposes.

Network data security
Employees

You own your data

Environment

Our privacy and security value proposition

range of data security capabilities from physical computer rooms to IaaS (Infrastructure as a Service),

Olympic Games in 2022. Our "Olympic Broadcasting Cloud" supported more than 6,000 hours of
streamed and broadcast digital content, and maintained the digital infrastructure against security holes
and malicious attacks. We achieved zero intrusion and zero data leaks.

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Building Trust

China

Governance structure and rules
Beyond our efforts in security technology, it is equally vital that we have principles and processes for data security

Cyberspace
Administration of China

management. To that end, we have set up a specialized data security decision-making group within our Risk
Officer" (PIPO).2

Ministry of Public
Security

In hosting the data for millions of organizations, Alibaba Cloud strictly abides by the principle of least privilege andadopts consistent management and control standards to protect customer data from unauthorized access.
To give full transparency to our security processes, we initiated the following three mechanisms：

Product privacy
protection

We implemented a mechanism forthird-party supervision and user
experience feedback.

We established the Personal Information
Protection Expert Committee, composedof professionals in law, technology, andother relevant fields.

Inviting users and customers toevaluate their experience of theprivacy protection functions of
Alibaba's products and services.

China Academy of Information and Communications Technology
Trusted cloud security assessment
Big data security assessment

State Administration forMarket Regulation

China Cyber Security​​
Review Technology and Certification Center
Safety product certification

State Cryptography
Administration

GlobalTransparent internal operation & maintenance (O&M)
hosted on the cloud platform is absolutely owned by the customer, and that it should never use such data.
Under our "notification-consent" principle, we have established transparent internal operational O&M logs.
Customers have access to all of their internal logs, giving them a full disclosure of data access and ensuring
there is no "black box" concerning the use of their data.

ISO 27001
ISO 27017
ISO 27018
ISO 27701
ISO 29151
ISO 20000

core security criteria assessment. Alibaba Cloud's six security capabilities (DDoS protection, web application firewall,

ISO 22301

cloud security center, cloud firewall, business risk control, and confidential computing) have been recognized by

ISO 27799

authoritative institutions around the world.

BS 10012

We strive to comply with and enforce all international and domestic laws and regulations related to data security andprivacy protection, and establish an internal data security control system. Our protocols are widely recognized within
the industry, especially in platform data control and customer data protection. We possess the most authoritative andcompliant set of qualifications in the Asia-Pacific region. Some of those qualifications are listed in the following tables.

USA
GxP
HIPAA/HITECHMPAACIS Benchmark
SEC Rule 17a-4(f)NIST 800-53/CSF

Dubai
NESA/ISRCSA STARPCI DSS
TRUSTeSOC1/SOC2/SOC3

Germany
C5
Trusted Cloud
TISAX

Australia
APRA
TPN
Hong Kong, China
HKMA
HKIA
SFC
SRAA
PDPO

Trust

² The business unit PIPO is responsible for supervising the processing activities and protection measures taken by the personal information processor.

Singapore
MTCS
PDPA
OSPAR
DPTM
CBPR/PRP

Philanthropy

In the 2021 Gartner Solution Scorecard for integrated IaaS and PaaS, Alibaba Cloud achieved the highest scores in theEuropeGDPR
EU-US Privacy
ShieldDPPEU Cloud CoC

Community

Recognitions and compliance

ISO 9001

Regions and industries

Small
Businesses

In the Data Protection Initiative, Alibaba Cloud has clearly stated the principle that customer business data

Cryptographic Application Security Capability Assessment
Public cloud products and services proprietary cloud (Tier 3)

Consumers

Personal information
protection

Ministry of Industry andInformation Technology

Employees

Third party
oversight

Network security level protection:
Financial Cloud (Level 4)
Public Cloud (IaaS/PaaS/SaaS, Level 3)
E-Government Cloud (Level 3)
Safety product sales license

Environment

Management Committee. This effort is replicated within each business unit with a "Personal Information Protection

Cloud computing service security assessment:
E-Government Cloud (Enhanced) Financial Cloud (Enhanced)

Executive
Summary

Security management system

Chairman's
Letter

2022

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Appendix

Appendix 1
ESG Key Performance Metrics
Environment - GHG emissions

Environment - Energy consumption

Indicator

Unit

Year ended March 31, 2022

Indicator

Unit

Year ended March 31, 2022

Total GHG emissions (Scope 1, 2, and 3)1

MtCO2e13,249,439

Total energy consumption

MWh8,786,584

Scope 1 emissions2

MtCO2e926,779

Direct energy consumption

MWh1,721,483

Scope 2 emissions3

MtCO2e4,445,238

Natural gas

thousands m³

12,482

Scope 3 emissions4

MtCO2e7,877,422

Liquefied petroleum gas

tonnes2.4

MtCO2e/million RMB

15.5

Diesel5

tonnes131,687

Scope 1 emissions intensity

MtCO2e/million RMB

1.1

Gasoline

tonnes254

Scope 2 emissions intensity

MtCO2e/million RMB

5.2

Direct energy consumption intensity(Direct energy consumption per unit of revenue)

MWh/million RMB

2.0

Scope 3 emissions intensity

MtCO2e/million RMB

9.2

Indirect energy consumption: Purchased electricity

MWh7,065,101

Indirect energy consumption intensity:
Purchased electricity(indirect energy consumption per unit of revenue)

MWh/million RMB

8.3

Renewable energy consumption

MWh464,049/

1.247

GHG emissions intensity(Total GHG emissions per unit of revenue)¹ We apply the principle of operational control to define the boundaries of this GHG inventory. It covers those GHG emissions categories in
Scopes 1, 2, and 3 that are both significant for Alibaba in the year ended March 31st 2022 (FY2022) and measurable. The GHG categories
covered in this inventory include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons(PFCs), nitrogen trifluoride (NF3), and sulfur hexafluoride (SF6). In the results of the inventory, five greenhouse gases, CO2, N2O, CH4, HFCs,
and SF6, were found in this reporting period. Please refer to Appendix 3 for detailed Scope 3 emission inventory categories.

Average PUE of data centers6² Scope 1 emissions are mainly caused by direct energy combustion (diesel, natural gas, etc.) and refrigerant fugitives.
³ Scope 2 emissions are mainly caused by electricity consumption in data centers, retail stores, and office areas.
⁴ Please refer to Appendix 3 for Scope 3 emission inventory categories. In FY2022, due to additions of new businesses and other changes
in business models, we have expanded the accounting boundary accordingly, including warehouse logistics emissions from Taocaicai, as
well as emissions from self-operated logistics of Alibaba.com.

⁵ The usage of diesel consumed by logistics vehicles are estimated values. In the future, we will further improve the accounting
and reporting of diesel usage by our own logistics vehicles.
⁶ PUE is a ratio of the total energy consumption of a data center to the energy consumption of IT equipment. In this report, it iscalculated for data centers within our operational control during FY2022.

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Appendix

Employment – Employee numbers ⁷

Employee health and safety12

Indicator

Unit

As of March 31, 2022

Indicator

Unit

Year ended March 31, 2022

Total number of employees/

254,941

Number of work-related fatalities

/

0

Male

%

50.46

Work-related fatality rate 13%

0

Female%49.54

Below 35%

50.69

Number of work-related injuries

/

25

35-49

%

44.19

Number of workdays lost due towork-related injuries/

839

50 and above

%

5.12

Work-related injury rate14

%

0.11

Mainland China

%

92.72

Hong Kong, Macao, and Taiwan

%

0.44

Other countries and regions

%

6.84

/

2,007

Percentage of
employees bygender

Percentage of
employees by age

Percentage of
employees byregionNumber of employees with physical disabilities

Percentage of womenin management

Indicator

Number of
suppliers15

Employment – Management diversity ⁸
Indicator

Suppliers management

Unit

As of March 31, 2022

Management ⁹

%

28.15

Executive management¹⁰%

50.00¹¹

⁷ The scope of the percentage of employees by gender, age, and region and the number of employees with physical disabilities includes
formal employees of all the consolidated entities of Alibaba Group.

Unit

As of March 31, 2022

Mainland China

thousands

36.1

Other countries andregions

thousands

17.2

⁸ The scope of employee diversity includes the formal employees in the businesses directly managed by Alibaba Group.

¹² The scope of employee health and safety includes the formal employees in the businesses directly managed by Alibaba Group. The data
come from work-related injuries and deaths recorded by Alibaba's human resources team and are verified by local authorities. In Mainland
China, work-related injuries and fatalities are verified by the local human resources and social security bureau.

⁹ Management refers to employees who are responsible to manage and lead other formal employees.

¹³ The work-related fatality rate = (Number of work-related fatalities / Total number of employees) * 100%.

¹⁰ Executive management comprises the ten highest leadership positions in the Group. The percentage of female executive
management = (Number of female executives / Total number of executives of the Alibaba Group) * 100%.

¹⁴ The work-related injury rate = (Number of recorded work-related injuries / Total number of hours worked) * 1,000,000. The statisticalscope of number of hours worked includes the formal employees in the businesses directly managed by the Company.

¹¹ As of the publication date of this report.

¹⁵ The suppliers here refer to those in the categories of media, events, service, engineering, office IT, and logistics who have completed
registration in Alibaba’s procurement platform. The regional information is related to the location of the company registration filled in the
supplier database, rather than the location where the supplier does business with Alibaba.

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Appendix 2
ESG Environmental Data Verification Statement

Appendix

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Appendix

Appendix 3
Greenhouse Gas Inventory and Carbon Methodology
This inventory covers Scopes 1, 2, and partial Scope 3 GHG emissions of Alibaba Group in FY2022 within theorganizational and reporting boundaries. The types of GHGs involved in this inventory include: carbon dioxide(CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), nitrogen
trifluoride (NF3) and sulfur hexafluoride (SF6). Through the inventory, five types of GHG emissions including CO2,

Scope

Emission Category

Emission Source

Stationary Emissions

Emissions from the use of natural gas of boilers andcookware, and diesel for diesel generators

N2O, CH4, HFCs and SF6 are involved during the reporting period.
In accordance with1) ISO 14064-1: 2018 Specification With Guidance at the Organization Level for Quantification
and Reporting of Greenhouse Gas Emissions and Removals, 2) Greenhouse Gas Protocol: Corporate Accounting
and Reporting Standard, 3) Greenhouse Gas Protocol: Corporate Value Chain (Scope 3) Accounting and ReportingStandard, 4) ISO 14064-3: 2019 Specification with Guidance for the Inventory and Validation of Greenhouse
Gas Statements and other applicable laws, regulations, and related standards, we conducted an inventory of
Alibaba’s GHG emissions and removals during the inventory period (FY2022). GHG emission activity data strictly

Emissions from diesel used in owned vehicles
Scope 1: direct

Mobile Emissions
Emissions from employee commuting

emissions fromcompany-owned andEmissions from leaking fire extinguishers

controlled resources
Fugitive Emissions

meet the quality requirements of relevant primary and secondary activity data. The emission factors comefrom the 2006 IPCC Guidelines for National Greenhouse Gas Inventories published by Intergovernmental PanelLeakage of SF6

on Climate Change (IPCC) in 2006 and 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse
Gas Inventories published in 2019, 2019 China Energy Statistical Yearbook and other authoritative references.
All processes follow CEC's internal GHG emission inventory quality control procedures, and strictly meet therequirements of the ISO14064-3 standard.
The inventory is based on ISO14064, IPCC guidelines and other applicable laws and regulations. The details are

Scope 2: indirect

Purchased Electricity

Production equipment and auxiliary facilities / Indirectemissions from electricity used in daily use equipment

Purchased Heat

Production equipment and auxiliary facilities / Indirectemissions from heat used in daily use equipment

Purchased Cooling

Production equipment and auxiliary facilities / Indirectemissions from cooling for daily use equipment

emissions fromconsumption ofpurchased electricity,heat, and steam

shown below:
Purchased Goods andServices· ISO 14064-1: 2018 Specification with Guidance at the Organization Level for Quantification and Reporting ofGreenhouse Gas Emissions and Removals

Upstream Transportation· ISO 14064-3: 2019 Specification with Guidance for the Inventory and Validation of Greenhouse Gas Statements

and Distribution· Guidelines for Accounting and Reporting Greenhouse Gas Emissions - China Public Building Operation Units (Enterprises) (Trial)· Greenhouse Gas Protocol: Corporate Accounting and Reporting Standard (Revised Edition)· Greenhouse Gas Protocol: Corporate Value Chain (Scope 3) Accounting and Reporting Standard

Business Travel
Scope 3: all otherindirect emissions· Other applicable laws, regulations and related standards

Packaging materials (plastic products), logistics
services (warehouse, distribution), data center
operations and maintenance services, data center
cloud computing, receipt, poster, etc.
Purchased transportation services
Emissions from employee travel

Employee Commuting

Emissions from employee commuting

Upstream Leased Assets

Warehouse and leased IDC

Downstream Leased Assets

Self-built office campus and shopping malls for lease,and ticket machine· 2006 IPCC Guidelines for National Greenhouse Gas Inventories· 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories

Refrigerant leakage

Franchises

Cainiao stations and Tmall campus stores

Investments

Investments in TV plays and shows

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Appendix

Appendix 4
Stakeholder Engagement and Materiality Assessment

Stakeholder groups

Stakeholder engagement• Media and social media communications
Consumers

Alibaba actively communicates and works with our various stakeholders, responds to their expectations, andand ESG agenda. We fully consider the wide range of interrelationships and influence of our businesses andregulators, as well as business partners, communities, the environment, and other stakeholders. We• Media and social media communications
Merchants

communicate with them in diverse ways, respond to their concerns and expectations timely, and continuously• 7x24 customer service hotline• Online and offline surveys, questionnaires, and interviews

improve our business and ESG strategies and actions. We maintain open communication channels and healthy• Emails to all staff

relationships with our stakeholders, who provide an invaluable reference for Alibaba to identify the most
relevant and important sustainable development opportunities, strengthen our capacities and actions, andimprove the quality of information disclosure.

• 7x24 customer service hotline• Online and offline surveys, questionnaires, and interviews

continuously strives to create sustainable value for all. This is the cornerstone of Alibaba's long-term businessplatforms on stakeholders, including consumers, employees, shareholders and investors, and government

Communication channels• Communication meetings
Employees• Staff intranet posts• Communication mechanism within business units• Training activities and grievance mechanisms

Government• Regular communications

and regulators• Special topic discussions and meetings• Phone calls, face-to-face meetings, and company visits

Shareholders
and investors• Corporate annual reports, quarterly reports, and announcements• Daily reporting and communication on ESG-related issues• Supplier training, ESG capability assessment, and communications

Value chain andplatform partners• Industry-specific forums and communication channels• Supplier conferences• Long-term public welfare projects• Daily media communications

Communities• Social media• Non-profit sector forums and events• Volunteer activities

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Appendix

Materiality Assessment
Very important

Our material issues encompass what matters most to our business, ESG goals, and stakeholders. Maintaining
awareness of these issues is critical for identifying and managing our risks and opportunities and effectively
responding to stakeholder expectations.

Approach and processassessment. Through benchmarking analysis and stakeholders engagement, we selected 22 strategic issues
conducive to creating sustainable shared values and constructed our materiality matrix.
1. Identifying issues and benchmarking
We first generate a long list of potentially material topics, using the expertise of our external advisors,
relevant sustainability frameworks (including GRI and SASB), requirements by stock exchanges (including
the Hong Kong Stock Exchange, HKEx), recommendations from rating agencies, domestic and international

2. Re ining
We carried out further analysis to refine the long list of issues and generate a short list of 22 issues. Our
analysis comprised consolidation among the long-listed issues and further assessment on the topics’ direct
relevance for our businesses, as well as the relevant trends and events related to specific issues.

9

10

19
5
4

22

2

12

8

11

18
14

15

16

17

3

13

1

21

20

6
7
Generally important

policies (including the SDGs), and peers best practices, as well as Alibaba's business.

Prioritize

Importance to stakeholders

In 2022, under the supervision of Alibaba Group's sustainability steering committee, we carried out a materiality

Sustain and communicate

Monitor, comply, and manage

Continuous internal efforts

Generally important

Importance to Alibaba

3. Stakeholder engagement processes

Very important

To understand the views of key stakeholders in the short-listed issues, we conducted a series of internaland external engagement and communications activities, including interviews and surveys. We also use
existing stakeholder communication channels to provide additional support information.
4. Prioritization and materiality matrix
We analyze stakeholder feedback to understand the importance of each topic to them; similarly, we also
analyze the importance of each issue to Alibaba's business and sustainable development strategy. We
use the results of the importance assessment to generate a materiality matrix. Based on the degree ofimportance of each issue to stakeholders and to ourselves, we classified the issues into four categories:
prioritize; continue internal efforts; sustain and communicate; monitor, comply, and manage.
The results of the materiality assessment reflect the most important ESG issues faced by our value chain andplatform ecosystem stakeholders. While placing issues in a matrix provides insight into our priorities, therelative importance of individual issues often varies by business unit, geographic region, and stakeholder
group.

Environmental

SocialGovernance

1

Energy and GHG emissions

7

Sustainable finance2

Climate resilience8

Supply chain management

3

Resource circularity

9

Talent retention and management

4

Water safety and conservation

10 Human and labor rights

5

Biodiversity and ecosystems

11 Occupational health and safety

21 Risk management

6

Waste management

12 Diversity, equity, and inclusion

22 Corporate governance

13 Rural revitalization
14 Product and service quality
15 Privacy protection and data security
16 Socioeconomic development
17 Community and social welfare
18 Innovation system

19 Business ethics
and anti-corruption
20 Anti-trust andIP protection

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Appendix

Appendix 5
Progress of United Nations Global Compact
As one of the world's most influential corporate sustainability initiatives, the UN Global Compact requires
companies to conduct themselves as "corporate citizens," calling on them to comply with the ten fundamental

Fieldsprinciples related to human rights, labor, environment, and anti-corruption, and to take action to advance thePrinciples

Corresponding chapters

Principle 1: Businesses should support andimplementation of social and sustainable development goals. More than 9,500 companies and 3,000 non-respect the protection of internationallySupporting our people - An equal,

proclaimed human rights.

dignified, inclusive, and diverse

UNGC and its principles. We take a responsible, principles-based, and integrated approach and are commited

Principle 2: Make sure that they are notwork environment

to the UN's development goals, conducting business in a responsible manner, and becoming a strong, long-complicit in human rights abuses.

business signatories from more than 160 countries have joined the UN Global Compact. Alibaba became aparty to the UN Global Compact in February 2021. Our Chairman and CEO, Daniel Zhang, continues to support

Human rights

term partner of the UN to fulfill its commitments to society.

Principle 3: Businesses should uphold thefreedom of association and the effective
recognition of the right to collective
bargaining.

LabourPrinciple 4: Eliminate all forms of forced andcompulsory labour.
Principle 5: The effective abolition of child

Supporting our people - An equal,dignified, inclusive, and diverse
work environment

labour.
Principle 6: Eliminate discrimination in
respect of employment and occupation.
Principle 7: Businesses should support aprecautionary approach to environmental
challenges.

Environment

Principle 8: Undertake initiatives to promote

Restoring our green planet -greater environmental responsibility.

Climate commitments and status

Principle 9: Encourage the development
and diffusion of environmentally friendly
technologies.

Principle 10: Businesses should work against

Anti-corruption

corruption in all its forms, including extortionand bribery.

¹Source: https://www.un.org/zh/37944

Building trust - Building corporate
trust; building social trust

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Appendix

Appendix 6
Report Indicator Index
Reporting Framework

HKEx ESG Indexing

SASB

GRI

TCFD

Restoring Our Green Planet
Governance-(a), and (b)；Climate commitments and status

A1, A1.2, A1.5, A1.6; A4, A4.1

305-1, 305-2, 305-3

Strategy-(a), (b), and (c)；Risk management-(a), (b), and (c)；Metrics and targets-(a), (b), and (c)1. Greening our operations and value chain

2. Amplifying decarbonization through our platform
ecosystem

A1.6; A2, A2.3, A2.4; A3,
A3.1; B5, B5.2, B5.3, B5.4

CG-EC-130a.3;
CG-EC-410a.2;
CG-EC-000.C

A1.5

302-4; 303-1; 304-1; 305-5;
306-2, 306-4; 308-1
305-5

3. Conserving and restoring nature

304-3

Supporting Our People
1. An equal, dignified, inclusive, and diverse work
environment

B1, B1.1; B4

2. Fair and competitive compensation and "benefits
with warmth"

B1; B4, B4.1

3. Abundant learning and career opportunities

B3, B3.1, B3.2

4. Employee health and vitality

405-1; 408-1; 409-1
401-1, 401-2, 401-3;
408-1; 409-1
404-1, 404-2
403-1, 403-3, 403-4,

B2, B2.3

403-5, 403-6, 403-7

Enabling a Sustainable Digital Life
1. Diverse consumption
2. Inclusive consumption
3. Trustworthy consumption
4. Responsible consumption

B6, B6.2, B6.4

Strategy-(a), (b), and (c)CG-EC-230a.1
CG-EC-220a.2;
CG-EC-410a.2

418-1
417-1

Strategy-(a), (b), and (c)

SDGs

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Environmental, Social, and Governance Report

Reporting Framework

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Appendix

HKEx ESG Indexing

SASB

GRI

TCFD

Fueling Small Businesses
1. Developing responsible technologies

CG-EC-000.B

2. Building digital business capabilities and markets for

CG-EC-000.A

MSMEs
3. Enabling inclusive employment
4. Promoting responsible production

Enhancing Community Inclusion and Resilience
1. Rural revitalization through digital development

B8, B8.1

2. Digitalization for community resilience

A4.1; B8.2

203-1, 203-2; 413-1

CG-EC-130a.3

Facilitating Participatory Philanthropy
1. Philanthropic participation of all employees
2. Technological innovations for social challenges

413-1

3. Empowering charities with technology
4. Philanthropy for everyone through our platforms

B8, B8.1, B8.2

413-1

Building Corporate and Social Trust
1. Building corporate trust
2. Building social trust

B7, B7.1, B7.3

Governance-(b)414-2Risk management-(b)B6.5CG-EC-130a.1,

Appendix: ESG Key Performance Metrics

205-1, 205-2, 205-3;

A1.2; A2.1; B1.1;

CG-EC-130a.2;

B2.1, B2.2; B5.1

CG-EC-230a.1;
CG-EC-330a.3

204-1; 302-1, 302-3;
305-1, 305-2, 305-3,
305-4; 403-9, 403-10

Metrics and Targets-(b)

SDGs

2022

Environmental, Social, and Governance Report

Appendix 7
Important Legal Information
This report contains forward-looking statements. These statements are made under the "safe harbor" provision under
Section 21E of the U.S. Exchange Act, and as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "future," "aim," "estimate,""intend," "seek," "plan," "believe," "potential," "continue," "ongoing," "target," "goal," "is/are likely to" or other similar
expressions. These statements include, among other things, those about our ESG strategies and the effectiveness of our
ESG strategies and initiatives.
Forward-looking statements involve inherent risks and uncertainties. A number of factors, including those described in
Alibaba’s annual reports and other filings with the U.S. Securities and Exchange Commission and announcements on
the website of the Hong Kong Stock Exchange, could cause actual results to differ materially from those contained in any
forward-looking statement.
The forward-looking statements made in this report relate only to events or information as of the date on which thestatements are made in this report and are based on current expectations, assumptions, estimates and projections. Alibaba
undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on
which the statements are made or to reflect the occurrence of unanticipated events, except as required under applicable law.
Information referenced in this report, including other Internet sites and third-party reports and publications, is not incorporated
into this report. For the reader’s convenience only, this document may provide the addresses of, or contain hyperlinks to, thirdparty websites. Alibaba has not reviewed such hyperlinks and takes no responsibility for the content therein.
The inclusion of information in this report should not be construed as a characterization regarding the materiality or
financial impact (or potential impact) of that information. For more comprehensive information about our results andoperations, including risks that could adversely affect our results of operations and financial condition, please refer to ourannual reports and other filings with the U.S. Securities and Exchange Commission and announcements on the website of
the Hong Kong Stock Exchange.

Appendix

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