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Tuesday, 26 December 2023
Cainiao Showcases Smart Logistics Carbon Reduction Innovations at COP28

Cainiao Group, (Cainiao), the logistics arm of Alibaba Group Holding Limited, recently announced its participation at the 28th Conference of the Parties (COP28) to the United Nations Framework Convention on Climate Change in Dubai, UAE.

Speaking at the event, Zhijing Niu, Vice President of Public Communications and Marketing, and Environmental Social and Governance (ESG) Initiative at Cainiao Group, presenting on green logistics, showcased China’s green logistics innovations via a series of practical case studies on how Cainiao leverages digital technology to drive its sustainability efforts.

Cainiao, an early advocate for green initiatives in the Chinese logistics industry, boasts one of the world's largest smart logistics network and the largest network of digitalized post stations globally. Leveraging its digital advantage and logistics capabilities, Cainiao has not only spearheaded the world's largest recycling practices but has also achieved lower carbon emission intensity compared to industry averages.

Cainiao has developed an end-to-end green logistics solution for upstream and downstream partners, employing digital technology extensively in key logistics processes such as ordering, packaging, transportation, and recycling to drive the low-carbon transformation.

In the ordering process, Cainiao's electronic waybill has been applied to over 100 billion parcels in the last three years, saving 400 billion pieces of paper. Cross-border parcels utilizing Cainiao's smart order consolidation technology have significantly reduced packaging and secondary delivery.

In the packaging process, Cainiao's smart packing algorithm recommends the optimal box type in less than a second, and has been widely applied in Cainiao warehouses to reduce packaging materials for over 300 million parcels annually, which is equivalent to reducing the use of 80 million cardboard boxes. Additionally, RFID (Radio-Frequency Identification) chips are embedded in Cainiao's green recycling boxes, reducing the need for manual verification and significantly reducing loss during turnover. In the 2023 fiscal year, Cainiao's green recycling boxes were used a cumulative 130,000 times.

Cainiao's proprietary routing algorithm in vehicle dispatch has set 36 world records, significantly reducing delivery distances in logistics transportation through optimized route planning.

By connecting consumers and merchants, Cainiao's green carbon reduction practices have always been in line with customers’ and industry’s needs. As early as 2016, Cainiao has encouraged consumers to participate in packaging recycling at Cainiao post stations. This green initiative has since evolved into the world's largest recycling practice.

Niu also showcased exercise books made from recycled packaging materials, created by consumers participating in packaging recycling at Cainiao post stations. These exercise books have been sent to 19 rural primary and middle schools in Daliangshan, Sichuan, conveying the concept of green recycling to students.

While encouraging widespread consumer participation, Cainiao is also collaborating with numerous brand merchants to expand recycling initiatives across various categories, including old clothes, shoes, and books. Currently, Cainiao's digital carbon asset management system has collaborated with seven provincial and municipal postal industries, nearly 100 universities in China, and more than 40 brand merchants.

“ESG is a long-term strategy for Cainiao, closely integrated with our various businesses. We also hope to collaborate closely with global business brands and research institutions to create a sustainable green logistics ecosystem actively,” says Niu.

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