1、Foundations for Sustainable GrowthESG REPORT 2018We have always felt a responsibility to help solve problems in society, because that is implied in our mission “to make it easy to do business anywhere” and we must consider how we will continue to manage risks and opportunities, including those assoc

2、iated with environmental, social and governance (ESG) factors. Contents01 OVERVIEW02 Letter from Jack Ma, Executive Chairman03 Alibaba Digital Economy04 Alibaba at a Glance05 Sustainability: At the Core of What We Do06 A Focus on What Matters Most: OurESGPriorities07 GOVERNANCE08 Corporate Governanc

3、e at Alibaba16 TRUST17 IntellectualPropertyRightsProtection25 Cybersecurity29 DataProtection32 SOCIAL33 Human Capital37 Social Impact43 ENVIRONMENT48 CONCLUDING THOUGHTS49 APPENDIX 50 Our Board51 OurPartnersWelcomeAlibaba Group Holding LimitedESG Report 2018 01OVERVIEWGOVERNANCETRUSTSOCIALENVIRONMEN

4、TAPPENDIXAlibaba Groups mission is to “make it easy to do business anywhere.” Having positive social impact has always been embedded in our organizational DNA. We believe that a profitable and prosperous business can only be achieved and sustained by solving large-scale societal problems.Today, the

5、Alibaba Digital Economy not only supports the infrastructure of commerce but also serves hundreds of millions of consumers and tens of millions of enterprises, most of them small businesses. This economy extends far beyond our immediate customers to impact the lives and businesses of all stakeholder

6、s in our ecosystem. Alibaba has become an institution of public trust.In this ESG report, our first such report for the investment community, we will share with you how we hold ourselves accountable to the highest standards of public trust. This report complements what we already report domestically

7、 to stakeholders on a regular basis and summarizes key information in one place for easy reference. You will learn that we are firmly of the view that the key to good governance and sustainability starts with a strong company culture and tone at the top from responsible leaders. That is why, in this

8、 report, we provide insights into an Letter from the Chairman understanding of Alibabas mission and vision and the role played by the Alibaba Partnership,auniqueorganizationofthemost senior members of management with the purpose of safeguarding our culture, talent development and sound governance fr

9、amework. In2010weformedtheAlibabaPartnershipbecause we recognized that, in order for us to develop a sustainable business, we needed a system that could outlast the Alibaba founders. Our system of governance transcends mere policies, rules, processes andprocedures.TheAlibabaPartnershipensures that t

10、he company is driven by a clear mission, supported by a strong culture, and inspired by the right leaders. At Alibaba, we expect our leaders to walk the talk, honor their commitments, own their mistakes, and approach problems with open-mindedness, respect and humility.One of the most difficult yet m

11、ost important governance issues challenging public institutions is managing leadership transition. Succession planning is not only about the selection of the right people but also continuity of mission, vision and values. Recently I announced that, on September 10, 2019, I will hand over the role of

12、 chairman of Alibaba Group to our chief executive officer Daniel Zhang. This report sheds light on how we manage leadership transition by focusing on human capital development and asking whether our mission, vision and values are still intact a process in which theAlibabaPartnershipplaysacriticalrol

13、e.I hope you will take away something meaningful from engaging in a conversation with us through this report. We also welcome further comments and views you may have and look forward to hearing from you. Thank you for all of your support. Sincerely yours, JACK MA Executive Chairman September 17, 201

14、8Alibaba Group Holding LimitedESG Report 2018 02OVERVIEWGOVERNANCETRUSTSOCIALENVIRONMENTAPPENDIXAs of fiscal year 20182036Our Goals642M2BNAnnual active consumers2Consumers globally10M10MSmall and medium sized businesses globallyProfitable businesses globally36M100MJobs created directly and indirectl

15、y3Jobs created directly and indirectlyAlibaba Digital EconomyOur Mission is “to make it easy to do business anywhere.” We and our affiliates are in the business of providing e-commerce, retail, local services, entertainment, healthcare, cloud computing and financial services to both consumers and en

16、terprises, which we refer to collectively as the Alibaba Digital Economy1. We apply our mission in every aspect of our operations to solve customers problemsbyremovingbarriersbetweenproducersofgoods,servicesorcontentandtheirendconsumers.As of March 31, 2018, we served 552 million annual active consu

17、mers in China and another 90 million outside China. We provide essential infrastructure and services to tens of millions of small businesses within our digital ecosystem. Our vision is that by 2036, we will serve 2 billion consumers globally and help create 100 million jobs by supporting 10 million

18、businesses to operate profitably.Since 2010, the management team members who manage the Alibaba Digital Economy operate as a partnership that we refertoastheAlibabaPartnership(formoredetailsrefertoCorporate Governance, page07).ThepartnersintheAlibabaPartnershiparecustodiansoftheAlibabaDigitalEconomy

19、.Ourjobistocontinuetogrow the Alibaba Digital Economy and safeguard the interests of all its stakeholders. Understanding how we do this complex jobisfundamentaltounderstandingtheimportance we put on our responsibility andaimforsustainability.1 The Alibaba Digital Economy includes businesses under Al

20、ibaba Group, Ant Financial Services Group, Cainiao Network,Ele.meandKoubei,AlibabaHealth,AlibabaPicturesandtheiraffiliatedentities.2 552M consumers in China and 90M outside of China from Lazada and AliExpress3 Source: According to a recent report by the Renmin University of China, Alibaba created 36

21、 million jobs in 2017 via its retail ecosystem, including 14 million jobs for online retailers and 22 million jobs for upstream and downstream sectors such as R&D, design, manufacturing and logistics. See http:/ Group Holding LimitedESG Report 2018 03OVERVIEWGOVERNANCETRUSTSOCIALENVIRONMENTAPPENDIXA

22、libaba at a GlanceLogisticsChinaWHOLESALE COMMERCECONSUMER SERVICESINNOVATION INITIATIVESDIGITAL MEDIA & ENTERTAINMENTChinaCross-Border & GlobalCORE COMMERCE* Indicates entities that we do not consolidate in our financial statements as of the date of this report.*Payment&FinancialServicesCloud Servi

23、ces*Cross-Border & GlobalAlibaba Group Holding LimitedESG Report 2018 04OVERVIEWGOVERNANCETRUSTSOCIALENVIRONMENTAPPENDIXOur MissionAlibaba is an institution of public trust. The Alibaba Digital Economy spans a vast scale of business operations with constituencies that include consumers, merchants, p

24、roducers, creators, service providers, business partners, regulators, employees and of course our shareholders. With the mission “to make it easy to do business anywhere,” these stakeholders rely on us to solve many of their business problems. We believe that solving peoples problems and doing so et

25、hically is the way to create value for society, and hence derive value forourcompanyandshareholders.Sustainability: At the Core of What We Do We believe public trust is earned by demonstrating that everything we do issustainable. As a corporation with shareholders who expect us to make a profit, Ali

26、baba defines “sustainability” as focusing on long-term value creation that drives sustainable profits. The pursuit ofsustainabilityrequiresthatwedothe right thing when our business impacts the environment and society, and we need a system of governance to ensure that we arealwayschoosingtherightethi

27、calpath.This report is about how we address these environmental, social and governance (ESG)considerations,puttingcustomersandemployeesfirstandchampioningsmallbusinesses.To make it easy to do business anywhereAlibaba Group Holding LimitedESG Report 2018 05OVERVIEWGOVERNANCETRUSTSOCIALENVIRONMENTAPPE

28、NDIXAlibabas sustainability prioritiesA Focus on What Matters Most: Our ESG PrioritiesFor this first ESG report, we undertook a rigorous materiality assessment that included input from internal and external stakeholders. Over the past year, we surveyed about 50 institutional shareholders representin

29、g around US$65 billion of our market capitalization as well as input from, among others, our customers and employees. Their input and this process led us to identify the seven issues (in box to right) as most critical to the sustainability of our business. Corporate governance Find out more, see pag

30、e 07 Intellectual property rights protection Find out more, see page 17 Cybersecurity Find out more, see page 25 Data protection Find out more, see page 29 Human capital Find out more, see page 33 Social impact Find out more, see page 37 Environmental impact Find out more, see page 44Send your comme

31、nts and feedback on the report and our ESG approach to BABAESGalibaba-In this first ESG Report, we highlight our commitment to these sustainability priorities and show how we address the issues focused on by our stakeholders. We would like to thank the customers, employees and shareholders whose vie

32、ws guided us in publishing this report. Alibaba Group Holding LimitedESG Report 2018 06OVERVIEWGOVERNANCETRUSTSOCIALENVIRONMENTAPPENDIXCorporate Governance at Alibaba Alibabahasauniquegovernancemodel.Tounderstandoursystemofcorporategovernance, it is important to understand the role of our Mission th

33、at guides us, our Vision that brings focus to our strategy, andourPartnership System that plays anactiveroleinkeydecisionsintheareasofleadershipsuccession,humancapital management, business ethics andsocialresponsibility.OVERVIEWGOVERNANCETRUSTSOCIALENVIRONMENTAPPENDIXAlibaba Group Holding LimitedESG

34、 Report 2018 07Our Vision by 2036The Role of Mission and VisionTypical public corporations think of “corporate governance” as a set of policies, rules, processes and compliance procedures. The presumption is that the profit motive inherently encourages risk taking by managers that must be tempered b

35、y checks and balances that reflect ethical considerations. We do not view “growth” versus “governance” as a zero-sum game. In fact, quite the opposite. We believe a company must be mission-driven in order to achieve sustainability.SOCIAL RESPONSIBILITY DEFINES OUR MISSION AND VISION The belief in ou

36、r mission to make it easy to do business anywhere is the foundational logic underlying our business decisions. We believe that we do not create value if we do not solve the problems of society, and if we do not create value for our customers, then the company will not be able to generate any revenue

37、, much less profits, from customers. We have stated publicly that we want Alibaba to last “at least 102 years” which would span three centuries from our founding in 1999. Our vision to serve 2 billion consumers globally and help create 100 million jobs by supporting 10 million businesses to operate

38、profitably by year 2036 helps us set long-term strategy and goals that are consistent with our values. This vision focuses our priorities on consumer trust, small business and job creation.We ask that everyone joining our company commit to our mission and vision. If we werent guided by a common miss

39、ion, then Alibaba would be a mere investment holding company with disparate businesses. With the collective pursuit of a clear vision, our various businesses will work together to generate synergies that drive long-term sustainable growth. Because we believe Alibabas business should be guided and dr

40、iven by our mission and vision, socially responsible elements i.e., solving customer problems, earning consumer trust, helping small businesses and creating jobs are embedded in our business model. To serve 2 billion consumers globally Support 10 million businesses to operate profitably Help create

41、100 million jobs Alibaba Group Holding LimitedESG Report 2018 08Alibaba Group Holding LimitedESG Report 2018 08OVERVIEWGOVERNANCETRUSTSOCIALENVIRONMENTAPPENDIXThe Role of the Alibaba PartnershipThe Alibaba Partnership (the “Partnership”) is at the heart of our company culture and identity. Currently

42、 comprised of 36 senior management leaders who oversee the various aspects of the Alibaba Digital Economy, the Partnership has had a clear purpose since it was formed in 2010: to sustain the culture of the founders of Alibaba in order to ensure that we stay on course in defining and executing our mi

43、ssion, vision and values.HOW THE ALIBABA PARTNERSHIP OPERATESLiving Body: TheAlibabaPartnershipis a dynamic group of people that operates as a living body, adding new blood through the admission of new partners each year. PartnersarerequiredtoretirefromthePartnershipiftheyarenolongercontributingto t

44、he work of growing the Alibaba Digital Economy.Sinceitsfounding,thePartnershiphas expanded from the admission of new partners each year; currently there are 36membersofthePartnership.Partnership Charter:ThePartnershipisgovernedbyaPartnershipagreement(the“PartnershipCharter”)andoperatesunderprinciple

45、s, policies and procedures that have evolved with our business. The key provisions ofthePartnershipCharteraddress,amongother things, the criteria and duties of the partners, their right to vote on matters of importancetothePartnership,andmeetingquorumandvotingprocedures.Admission of New Partners: Th

46、e most importantelementofthePartnershipistheannual process of selecting and admitting newpartnerstothePartnership.Newpartnercandidates are selected on the criteria of personal character; impact on our business; demonstrated ability to live and evangelize our culture; and at least five years tenure o

47、f service to the Alibaba Digital Economy. Admissionofnewpartnersrequirestheapproval of at least 75% of all partners.Collective Decision-Making:AllPartnershipvotes are made on a one-partner-one-vote basis.Eachpartnerhasavoteequaltothat of any other partner on matters that come tothePartnershipfordeci

48、sion:electionofnew partners, expulsion of partners, selection ofPartnership-nominatedboardmembers to Alibaba Group, and amendment of the PartnershipCharter,tonameafew.Stock Ownership: Another important elementofthePartnershipisthateachpartner has share ownership in Alibaba Group that is substantial

49、relative to their net worth. The average partner has no less than a majority of their net worth in the shares ALIBABA PARTNERSHIP COMPOSITIONBy Gender24 Male Partners12 Female PartnersFemale (33%)Male (67%)of Alibaba Group. Newly admitted partners are awarded shares in the Alibaba Group that vest ov

50、er 10 years, and each partner must retain a significant level of share ownership that aligns the partners interests with the stockholders of the company.Diversity and Experience: Of the 36 current partnersofthePartnership,12partners(33%)are women, and 32 of the partners (89%) have been employed with