Lazada released its annual Environment, Social, and Governance (ESG) Impact report: Accelerating Innovation, Anchoring Resilience for its financial year (FY) 2024, underscoring its commitment to building a responsible and sustainable business through innovation.
The annual report continues to detail the Group's ongoing efforts and achievements, under the four core pillars of its ESG framework, namely: Empowering Communities, Future-Ready Workforce, Environmental Stewardship, and Effective Governance.
One key highlight in this year's report is introducing an internal carbon data collection platform developed to track and monitor the Group's carbon emissions. The platform utilizes an improved activity-based carbon accounting methodology constantly refined to reflect real-world conditions and obtain more precise information for effective emissions management.
This improvement enhances the data quality and accuracy for Scope 1 and 2 emissions, making it more robust than in previous years. Implementing various business optimization initiatives to lower overall electricity consumption also contributed to a 40% reduction in Lazada's overall Greenhouse Gas (GHG) emissions compared to the previous reporting period. Specifically, our reported emissions have decreased by 54% in Scope 1, 8%, and 30% in Scope 2 and 3, respectively.
"Our third ESG Impact Report continues to showcase our commitment to creating a positive impact on the environment and key stakeholders in the wider eCommerce ecosystem that includes our employees, buyers, sellers, and the communities we serve," said James Dong, chief executive officer of Lazada Group. "Our confidence in Lazada's future stems from our commitment to fostering long-term growth through continuous adaptation and resilience building. We remain focused on creating value for our stakeholders, driving economic prosperity, and championing regional sustainable developments."
The report highlights many other notable achievements and progress of the company's ESG efforts during the reporting period, including:
Empowering Communities:
Driving innovations across the ecosystem: Lazada leverages technological innovations to redefine the online retail experience and bridge the digital divide:
AI applications to empower buyers, such as Lazada's "Ask the Buyers" feature, which prompts past buyers to respond to product-related questions and aid other buyers in product selection, and the launch of LazzieChat, Lazada's first-of-its-kind chatbot powered by OpenAI ChatGPT, in Indonesia, the Philippines, and Singapore.
Lazada's national QR code payment initiative aims to facilitate seamless payments in Singapore and Thailand, provide more online payment options for buyers, and make online shopping more accessible and inclusive for consumers without credit or debit cards.
Championing local businesses: In October 2023, Lazada launched the Lazada Sustainability Academy, a pioneering program to empower small and medium Southeast Asian companies with the mindset and knowledge needed to future-proof and transform sustainably.
Future-Ready Workforce:
Shaping the future of digital commerce through digital enablement and outreach engagement: Lazada Indonesia partnered with the West Java Ministry of Education through the Acceleration of Indonesian Digital People's Work Movement (AKAR) to organize the "Naik KeLaz" Training of Trainers program for 100 vocational high school teachers.
Cultivating a deeper understanding of sustainability for Lazadians: Lazada launched its first ESG internal training module to provide foundational knowledge of ESG principles and enable all employees to apply what they have learned in day-to-day business practices.
Environmental Stewardship:
Lower carbon footprint: Lazada reduced its overall GHG emissions by 40% compared to the last reporting period, using a more accurate activity-based carbon accounting methodology.
Notable sustainable logistics initiatives: In September 2023, Lazada Thailand launched its first eco-friendly logistics hub at the Tha Raeng Ramindra logistics facility to minimize its environmental impact through three key strategies: using solar power, utilizing electric motorcycles for transportation, and providing delivery partners with uniforms made from recycled PET plastics bottles. 20% of the facility's electricity needs are powered by solar energy.
Effective Governance:
Strengthened cybersecurity measures: Lazada achieved a 100% employee training completion rate for its Code of Business Conduct and Anti-Bribery and Corruption Policy during the reporting period.
Best practices for intellectual property protection (IPR) and processes: Lazada's Intellectual Property Protection Platform processes over 97% of takedown requests by rights holders within 72 hours. Under the proactive measures program, the platform leverages advanced technology like AI and image recognition to remove 85.7% of identified listings, achieving a 90% removal rate before transactions occur for 140 brands.
"Sustainability is a continuous journey, which should be managed holistically. As such, we believe in transparency and accountability when tracking and reporting on our progress," said Gladys Chun, General Counsel, Lazada Group. "We are proud of the achievements we have accomplished on this journey as we strive to make positive and meaningful contributions to the wider eCommerce ecosystem, the communities we serve, and the environment."
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