Climate Change Data

Baozun Inc.

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:64,007 tCO2e/year (Scope 1, 2, & 3)
Scope 1 Emissions:316 tCO2e/year
Scope 2 Emissions:12,228 tCO2e/year
Scope 3 Emissions:42,877 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:37,945 MWh/year
Water Consumption:202,244 m3/year
Waste Generated:5,009 tons/year (non-hazardous)
Carbon Intensity:2.40 tCO2e/RMB million (Scope 1 & 2)

ESG Focus Areas

  • Corporate Governance
  • Environmental Management
  • Social Responsibility
  • Responsible Innovation

Environmental Achievements

  • Reduced Scope 1 and 2 greenhouse gas emissions by 28% compared to 2021.
  • Recycled 14,324 tons of packaging materials.
  • Improved CDP climate questionnaire score from C to B.

Social Achievements

  • Provided 64,776 hours of employee training (8.28 hours per employee).
  • Launched employee wellbeing program.
  • Partnered with universities to provide internships and training to nearly 800 students.
  • Donated Gap brand clothing to flood victims in Hebei Province and to disadvantaged children in Yunnan Province.
  • Established partnerships for rural revitalization in Malipo County, Yunnan Province, including building green computer classrooms and providing e-commerce training.

Governance Achievements

  • Established a comprehensive ESG management system.
  • Implemented an incentive compensation clawback policy for senior executives.
  • Achieved ISO 27001 (Information Security Management System) and ISO 27701 (Privacy Information Management System) certifications.
  • Expanded the scope of Cybersecurity Protection Assessment Level III.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality across the value chain by 2050.
  • Increase the proportion of renewable energy usage to 80% by 2040.
Medium-term Goals:
  • Reduce carbon emissions (Scope 1 & 2) by 50% by 2030 (compared to 2021).
  • Reduce carbon emissions (Scope 3) by 50% by 2030 (compared to 2021).
Short-term Goals:
  • Reduce water consumption (per capita)
  • Achieve 100% waste separation in office buildings, warehousing, and logistics parks by 2025.
  • Maintain a 100% compliance rate for hazardous waste disposal by 2025.

Environmental Challenges

  • Supply chain disruptions due to climate events (implied)
  • Resource scarcity due to climate change (implied)
  • Risks related to policy and legal changes, reputational damage, acute physical risks, and technological changes (climate-related)
  • Financial risks, operational risks, fraud risks, cybersecurity risks, investment and funding risks, and external regulatory risks (non-climate related).
Mitigation Strategies
  • Developed alternative sourcing strategies (implied)
  • Implemented comprehensive emission reduction strategies (including optimizing logistics transportation, improving energy efficiency, promoting clean energy).
  • Developed a comprehensive risk management system with three lines of defense.
  • Established a full-time internal audit team.
  • Implemented a data security emergency response system.
  • Conducted regular integrity training for employees and supplier audits.
  • Implemented a supplier blacklist system.
  • Developed corrective action plans for identified risks and opportunities.

Supply Chain Management

Supplier Audits: 532 suppliers audited

Responsible Procurement
  • Baozun Procurement Policy 3.0
  • Gap China Procurement Policy
  • Supplier Code of Conduct
  • Confidentiality Agreement
  • Anti-Corruption and Compliance Declaration
  • Family and Friends Relationship Declaration
  • Network Security and Data Protection Standard Terms

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (typhoons, floods)
Transition Risks
  • Policy and legal risks
  • Reputational risks
  • Technological risks
  • Market risks
Opportunities
  • Market opportunities (growing demand for green products)
  • Resource efficiency improvements
  • Adaptability improvements

Reporting Standards

Frameworks Used: NASDAQ ESG Reporting Guide 2.0, HKEX Environmental, Social, and Governance Reporting Guide, GRI Sustainability Reporting Standards (GRI Standards 2021)

Certifications: ISO 27001, ISO 27701, PAS 2060 (for Tuopu and ESR Carbon Neutral Parks)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • SDG 4
  • SDG 8
  • SDG 12
  • SDG 13
  • SDG 5

Initiatives contribute to these goals through employee training, rural revitalization, waste reduction, carbon emission reduction, and board diversity.

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • 2023 Carbon Neutral Model Enterprise Award
  • Social Responsibility Award of the Year (International Green Zero-Carbon Festival)
  • Best ESG Innovation Award (8th Zhitong Finance Listed Companies Awards Ceremony)
  • ESG Digital Talent Public Welfare Ecological Partner (Taotian Group)
  • Best Social Responsibility Award (2023 HR Flag Employer Brand Awards)
  • ECI Awards (Gold Award for Product Innovation, Bronze Award for Marketing Innovation)
  • CAMA China Advertising Marketing Awards (Interactive Experience Service Team of the Year, Digital Marketing Team of the Year, Bronze Award for Integrated Media Effectiveness)
  • M360 Award (Gold Award for Digital Smart Products, Silver Award for Full Chain Business Growth Dealers, Silver Award for Private Sector E-Commerce Growth)
  • Golden Sound Award (Best Online Customer Service Solution in China 2023)
  • ROI Festival (Gold and Bronze Awards in the Effective Delivery Optimization Track)
  • Beisen HeRo 2023 China Talent Management Excellence Award
  • Zhaopin 2023 Outstanding Campus Recruitment Award
  • 51 Job 2023 Outstanding Employer Award for Excellence in Human Resource Management
  • CEIBS: 2023 MBA Employer Appreciation- Best Company Event Award
  • CIWEI2023: the Award of Youth Friendly Employers