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Alibaba (BABA - Free Report) gears to zero down its carbon footprints to boost its environmental sustainability goals.
The company has recently announced its carbon neutrality commitments to bolster its climate strategy. Alibaba has pledged to achieve carbon neutrality by 2030.
Precisely, Alibaba Group aims to achieve the target in its direct emissions — Scope 1 — as well as its indirect emissions — Scope 2. Notably, indirect emissions are derived from electricity consumption.
The company also targets reducing its carbon intensity by 50% by 2030 in Scope 3 (emissions produced by participants in its platform’s ecosystem from areas such as transportation, purchased goods and services, and waste).
Meanwhile, Alibaba Cloud aims to achieve the latest carbon neutrality target in three defined scopes.
The company has announced Scope 3+ target, according to which it aims to achieve 1.5 gigatons of decarbonization by 2035.
We note that the latest move is likely to benefit Alibaba in today’s world, where the demand for lowering the hazardous environmental impacts of business operations is increasing at a fast pace.
Further, switching to the use of clean and renewable energy is expected to help the company gain investor optimism.
With the latest move, Alibaba peps up the carbon neutrality game for the other bigwigs like Amazon (AMZN - Free Report) , Alphabet (GOOGL - Free Report) and Analog Devices (ADI - Free Report) , which are also taking initiatives to adopt alternative energy sources for lowering overall carbon emissions and cutting energy bills substantially.
Amazon has turned out to be the biggest corporate investor in renewable energy by bringing its total count of renewable energy projects to 274 globally.
The e-commerce giant aims at powering its infrastructure with 100% renewable energy on the back of its growing investments in these projects. Notably, the goal was initially targeted to be met by 2030, which is now expected to be achieved by 2025. Further, Amazon has pledged to meet net-zero carbon emission goals by 2040.
Alphabet’s aggressive three-fold strategy — which includes energy efficiency, renewable energy procurement and carbon offsets — is a testament to its commitment to carbon neutrality.
Moreover, the company’s division, Google, which has been carbon neutral since 2007, is now aiming to be carbon-free by 2030.
Meanwhile, Analog Devices pledged to reach carbon neutrality and net-zero emissions by 2030 and 2050, respectively. Moreover, it is committed to Science-Based Targets.
Further, it intends to shift its operations to 100% renewable energy by 2025. Also, it is gearing up to address emissions across the full value chain by 2030.
Bottom Line
The latest move of Alibaba is in sync with its strong efforts to bolster its presence in the e-commerce as well cloud industry by deepening its focus on maximizing the sustainability impacts of its technologies and solutions.
However, this Zacks Rank #5 (Strong Sell) company is currently facing stiff competition from the domestic as well as foreign e-commerce companies despite its strong e-commerce strategies and platform. Further, the company is reeling under competitive pressure from major cloud players like Amazon Web Service, Microsoft Azure and Google Cloud.
Image: Bigstock
Alibaba's (BABA) Carbon Neutrality Goals Boost Climate Pledge
Alibaba (BABA - Free Report) gears to zero down its carbon footprints to boost its environmental sustainability goals.
The company has recently announced its carbon neutrality commitments to bolster its climate strategy. Alibaba has pledged to achieve carbon neutrality by 2030.
Precisely, Alibaba Group aims to achieve the target in its direct emissions — Scope 1 — as well as its indirect emissions — Scope 2. Notably, indirect emissions are derived from electricity consumption.
The company also targets reducing its carbon intensity by 50% by 2030 in Scope 3 (emissions produced by participants in its platform’s ecosystem from areas such as transportation, purchased goods and services, and waste).
Meanwhile, Alibaba Cloud aims to achieve the latest carbon neutrality target in three defined scopes.
The company has announced Scope 3+ target, according to which it aims to achieve 1.5 gigatons of decarbonization by 2035.
We note that the latest move is likely to benefit Alibaba in today’s world, where the demand for lowering the hazardous environmental impacts of business operations is increasing at a fast pace.
Further, switching to the use of clean and renewable energy is expected to help the company gain investor optimism.
Alibaba Group Holding Limited Price and Consensus
Alibaba Group Holding Limited price-consensus-chart | Alibaba Group Holding Limited Quote
Carbon Neutrality Gaining Steam
With the latest move, Alibaba peps up the carbon neutrality game for the other bigwigs like Amazon (AMZN - Free Report) , Alphabet (GOOGL - Free Report) and Analog Devices (ADI - Free Report) , which are also taking initiatives to adopt alternative energy sources for lowering overall carbon emissions and cutting energy bills substantially.
Amazon has turned out to be the biggest corporate investor in renewable energy by bringing its total count of renewable energy projects to 274 globally.
The e-commerce giant aims at powering its infrastructure with 100% renewable energy on the back of its growing investments in these projects. Notably, the goal was initially targeted to be met by 2030, which is now expected to be achieved by 2025. Further, Amazon has pledged to meet net-zero carbon emission goals by 2040.
Alphabet’s aggressive three-fold strategy — which includes energy efficiency, renewable energy procurement and carbon offsets — is a testament to its commitment to carbon neutrality.
Moreover, the company’s division, Google, which has been carbon neutral since 2007, is now aiming to be carbon-free by 2030.
Meanwhile, Analog Devices pledged to reach carbon neutrality and net-zero emissions by 2030 and 2050, respectively. Moreover, it is committed to Science-Based Targets.
Further, it intends to shift its operations to 100% renewable energy by 2025. Also, it is gearing up to address emissions across the full value chain by 2030.
Bottom Line
The latest move of Alibaba is in sync with its strong efforts to bolster its presence in the e-commerce as well cloud industry by deepening its focus on maximizing the sustainability impacts of its technologies and solutions.
However, this Zacks Rank #5 (Strong Sell) company is currently facing stiff competition from the domestic as well as foreign e-commerce companies despite its strong e-commerce strategies and platform. Further, the company is reeling under competitive pressure from major cloud players like Amazon Web Service, Microsoft Azure and Google Cloud.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Additionally, Alibaba’s increasing regulatory concerns in China along with rising expenses associated with new initiatives remain overhangs.