RESTRICTEDJD.comGreenFinanceFrameworkDecember20211RESTRICTEDTableofcontents1.Introduction2AboutJD.com2SustainabilityVisionandStrategy3i.GreenOperations3ii.Low-carbonandGreenSupplyChain5iii.GreenLifestyleAdvocacy82.GreenFinanceFramework102.1UseofProceeds112.2ProcessforProjectEvaluationandSelection122.3ManagementofProceeds12i.TypeofFundingTransaction12ii.AllocationofUseofProceeds122.4Reporting13i.AllocationReporting13ii.ImpactReporting133.ExternalReview152RESTRICTEDIntroductionAboutJD.comJD.com,Inc.(“JD.com”ortogetherwithitssubsidiaries“theGroup”orthe“Company”)isaleadingtechnologydrivene-commercecompanytransformingtobecometheleadingsupplychain-basedtechnologyandserviceprovider.Thecompany’scutting-edgeretailinfrastructureseekstoenableconsumerstobuywhatevertheywant,wheneverandwherevertheywantit.Thecompanyhasopeneditstechnologyandinfrastructuretopartners,brandsandothersectors,aspartofitsRetailasaServiceofferingtohelpdriveproductivityandinnovationacrossarangeofindustries.IncorporatedintheCaymanIslands,JD.comwaslistedonNASDAQin2014andsubsequentlycompleteditssecondarylistingonHongKongStockExchangeinJune2020.ItisalsoamemberoftheNASDAQ100andaFortuneGlobal500company.JD.comisthelargestretailerinChina,providingover552millionannualactivecustomerswithdirectaccesstoanunrivalledrangeofauthentic,high-qualityproducts,andhelpingleadinglocalandinternationalbrandstapintoChina’sfast-growinge-commercemarket.Intheindustry,JDpossessesthemostcomprehensivesupplychaincapabilities,inparticularthethreecomprehensivesupplychainmodels,namelytheB2Ccentralizedwarehousemodel,theF2Coriginwarehousemodel,andthelocalretailmodel.Itsunrivallednationwidefulfillmentnetworkcoversalmostallcounties&districtsinChinaandprovidesstandardsame-andnext-daydeliveryservices.TheGroup’skeybusinessgroupsandunitsincludeJDRetail,JDHealth,JDLogistics,JDProperty,JDInternationalJDTechnologyandothers.3RESTRICTEDSustainabilityVisionandStrategy1“PoweredbyTechnologyforAMoreProductiveandSustainableWorld”isJD.com’smissionandcorestrategyofsocialresponsibility.Basedonitsoperatingandbusinessadvantages,JD.combuildsagreenandlow-carbonbusinessmodelcoveringthreedimensions:CorporateOperations,SupplyChain,andSustainableConsumption,toachievegreeneconomicdevelopmentandjointlybuildagreencommunity.i.GreenOperationsJD.comaimstoleadbyexamplethroughthecompany’sowngreenoperationswithalowercarbonfootprintandgreeningtheirbusinessworld.Greenandlow-carbondatacenter:Throughlow-carbondesign,greenprocurement,energymanagement,efficientresourcesuseandwastemanagement,aswellasdailygreenoperations,JD.comhasachievedgreenerdatacenterpracticeswithalowercarbonfootprint.Thedatacenters’annualaveragepowerusageeffectiveness(PUE)isdecreasingeachyear,reachingbelow1.1byutilizingenergysavingtechnologiessuchascoldplateliquidcooling,indirectevaporativecooling,highefficientpowersupplyandtheAItechnology,aswellasrefinedoperationsandmaintenancemanagement.Suchinitiativeshavealsobeenwellandwidelyrecognizedexternally–on25November2021,theCompany’sindustry-leading“DataCenterEntireCabinetLiquidCoolingandHeatRecoverySystemTechnology”wonthefirstprizeofthe2021“DataCenterScienceandTechnologyAchievementAward”,whichhasbeenknownasthe“NobelPrize”intheIDC(InternetDataCenter)industry.Inthefuture,thedatacenterswillusenewtechnologythatrecyclesresidualheatderivedfromdatacenteroperations,toprovideagreenandcleanheatsourceforurbanintegratedheatsupplynetworks.Greenprocurement:JD.comactivelyimplementtheconceptofgreenprocurement,comprehensivelyconsideringtheenergy-savingandenvironmentalprotectionbenefitsofproductdesign,procurement,production,packaging,logistics,sales,service,recycling,andreuse.TheGroupprioritizestheprocurementofrawmaterials,productsandserviceswhichareenvironmentallyfriendly,energyeffective,andcanbefullyutilized.TheCompanykeepsimprovingitsstandardsandsystemsongreenprocurement,including“GreenProcurementManagementRegulation”and“TheMaximumAllowableValuesofEnergyPerformanceandEnergyEfficiencyGradesofCommercialRefrigeratingAppliances—Part1:RefrigeratedDisplayCabinetswithRemoteCondensingUnit.”JDworkswithitsupstream1Moreinformationcanbefoundinthesustainabilityreports:https://ir.jd.com/esgcsrGreenandLow-carbonTargetsUpholdingChina’s2060CarbonNeutralityTargetJD'sEnvironmentalProtectionStrategyCorporateOperationsGreenLow-carbonDataCentreGreenProcurementGreenOfficeGreenTravelSupplyChainLow-carbonStorageLow-carbonLogisticsCircularPackagingSustainableConsumptionZeroWasteCitySustainableLifestyleTrendsInsightsandResearchEco-partners4RESTRICTEDanddownstreampartnercompanies,andcreatesagreensupplychainbyjointlypracticingcorporatesocialresponsibilityinenvironmentalprotection,energysaving,andemissionsreduction.Intermsofspecificprocedures,suppliersourcingandadmittanceareconductedaccordingtothespecificconditionsofprojectssubmittedbythebusinessdemanddepartment.Intheprocessofsupplieradmittance,thedepartmentofcostandexpenseneedstofullyconsiderenvironmentalrequirements,andqualifiedsuppliersmustmeettherequirementsofgreenadvocacyandChina’slawsandregulations.Asforthelogisticsandconsumablescategory(boxes,waterproofbags,logistictags,courierenvelopes,andbufferpackages),eachdischargedpollutants(wastewater,wasteoil,andwastegas)willbestrictlycontrolledtomeettheenvironmentalstandardsandregulationsintheprocessofmanufacturing,transportation,anddelivery.Additionally,productionandprocessingenterprisesarerequiredtoemployfull-timewastedisposalpersonnelwhotakechargeofregularcollectionandtreatmentofwastewater,wastegas,andsolidwasteatfixedsitesinthefactories.Thesuppliersarealsorequiredtohavecomprehensiveenvironmentaldocumentationandrawmaterialcontrollingsystems,prohibitingtheprocurementandtheuseofpoisonousandhazardoussubstances,aswellasrecycledmaterialsthathavepotentialhealthriskstopeople.Forthegreenprocurementcategories,candidatesuppliersmuststrictlyfollowJDLogistics’technicalstandardsintheprocessofbidcalling,priceinquiry,andbidding.JD’ssuppliersarerequiredtoprovidequalifiedgreenproductsandservices.Supplierswhofailtoreachthetechnicalstandardsarenotqualifiedtoparticipateintheprocurementofpackagingconsumables.oProjectsCallingforBids:Duringthebidding,suppliersmustmentiontheirenvironmentalcapabilityandcontributionswhenelaboratingontheproposals.Theircontributionsintheenvironmentalfieldcanserveasabonusinhowtheyarescored.Thiscriterionisincludedintheirtechnicalassessment.oPriceInquiry,ComparisonandBiddingProjects:Forsupplierswhodidnotwinthebid,ifproofofoutstandingcontributionstoenvironmentalprotectioncanbeprovided,procurementdepartmentemployeesofJDcansubmitawrittenapplication(regardingenvironmentalfactors)tothedepartmentheadforapproval.Atthesametime,thisdocumentwillalsobesubmittedtotheCEOoftheJD’srelatedbusinessunitforapproval,drivingthedevelopmentofgreenprocurement.oGreenProcurementNegativeListSystem:Thenegativelistsystemisappliedinthesuppliermanagementoflogisticsconsumables.Thesystemsetsthresholdsintermsofevaluatedenvironmentalcreditlevels,environmentalviolationrecords,environmentalinformationdisclosurelevels,emissionsandenergyconsumption,andcleanproductionauditing.JD’s“GreenProcurementManagementRegulation”requiresthegreenprocurementcategorytoimplementthenegativelistsystem.Forsuppliersshortlistedinthegreenprocurementlibrary,JDwillsuspendorterminatetheprocurementcontractsifanycircumstanceinthenegativelistorotherenvironmentalproblemshavetakenplace.IftheGroupincurredanylossbecausesuppliersdeliberatelyconcealedtheirviolationofenvironmentallawsandregulations,JDhastherighttoprotectitsbenefitsinaccordancewithlawsandregulations.Greenoffice:JD.comvaluesenvironmentalprotectionandenergyconservationwhendesigns,buildsandmaintainstheoffice.CompanyhasrecentlycompletedtheconstructionofNo.2andNo.4buildingslocatedintheirheadquarters,andreceivedcertificationfromChineseGreenBuildingEvaluationLabel(3stars)andU.S.LeadershipinEnergyandEnvironmentalDesign(Gold)respectively.AlsoCompanypromotespaperlessofficeswithinthecompanytoreducepaperconsumption.Someoftheofficeareashaveinstalledinductivelightingtoachievesmartenergyconservation.CompanyprioritizesourcingtoiletpaperproductsfromForestStewardshipCouncil(FSC)-certifiedsupplierstoreducetheGroup’senvironmentalimpact.GreenWarehouse:JD.comdesignsitswarehouses,includingXiamenTong’aneast,LiuzhouLiujiang,GuangzhouJiulongPhaseII,andChengduTianfuPhaseII&IIIaccordingtotherequirementsoftheChineseGreenBuilding5RESTRICTEDEvaluationLabel.JDAnhuiE-CommerceParkPhaseIIhasalreadyobtainedGoldcertificationfromU.S.LeadershipinEnergyandEnvironmentalDesignanditsIntelligentIndustrialParkinLangfangisintheprocessofobtainingthecertification.TheSuqian“AsiaNo.1”IntelligentLogisticsParkisdesignedtoincorporatefacilitiessuchaswarehouserooftopsolarphotovoltaic(PV)systems,chargingstationsforelectricvehicles,energystorage,smartenergymanagementandcontrolplatformand5Gsmartstreetlights,beingthecarbonneutraldemonstrationparkfortheindustry.GreenCommute:JD.comhasstrategicallycooperatedwithDiDiandreducedtheiremployees’carbonfootprintthroughcarpooling.Since2016,therehavebeen196,131electricvehicleridesandanaccumulativemileageof3,437,911kmfromemployees’dailycommuteaccordingtoDiDi,reducingJD’scarbonemissionsby275,032.88kgcarbondioxideequivalent(kgCO2e).ii.Low-carbonandGreenSupplyChainInOctober2019,JDLogisticsannouncedthatitwouldjointheScienceBasedTargetsinitiative(SBTi),becomingthefirstChineselogisticscompanytocommittoascience-basedemissionsreductiontarget.JDLogisticscommitstoreducegreenhousegasemissions50%by2030comparedwith2019.OnJuly6,2020,JDLogistics’GreenStreamInitiative2launchedthefirstEnvironmentalProtectionDayinthelogisticsindustry,furtherpromotingandimplementingtheconceptoftheentiregreensupplychain.AsofDecember2020,theGreenStreamInitiativehasinfluencedmorethan200,000merchantsandhundredsofmillionsofconsumers.DuringtheJD11.11promotionperiodin2021,JDLogisticsachievedacumulativecarbonreductionof26,000tonsthroughtheimplementationofaseriesofenergy-savingandcarbon-reductionmeasures,suchasreducedpackaging,useofnewenergytransportationvehicles,installationofdistributedsolarphotovoltaic(PV)powergenerationsystems,andapplicationofsmartequipment,etc.Transportation:JDreplacestraditionalfuel-combustiontruckswithnewenergyvehicles,leadingtothedevelopmentofgreentransportation.From2017to2020,JDLogisticslaunchednewenergyvehiclesinmorethan50citiesinsevenregionsacrossChina,reducingatleast120,000tonsofCO2emissionsperyear.Inaddition,JDhasbuiltandintroducedTheGreenStreamInitiativewaslaunchedonJune5,2017.JDLogisticsjoinedhandswithupstreamanddownstreampartnersinthesupplychain(includingbrandownerstoretailers,andretailerstousers)topromotethegreeningoftheend-to-endsupplychain.OnMay25,2018,theGreenStreamInitiativewascomprehensivelyupgraded,fromfocusingonthefieldofgreenlogisticsandecologicalenvironmenttothesustainabledevelopmentstrategyoftheentireGroupthatincludescomprehensivecontentregarding“Environment,”“Society,”and“Economy”.6RESTRICTEDmorethan1,600chargingstationsnationwidetobettersupportthenewenergyvehicles.Companyusesbigdatatocarryoutreal-timeoptimalrouteplanningandstoragenetworkplanningtoreducethenumberofvehiclesintransit,increasethefullloadrateofreturnvehicles,andoptimizetheefficiencyoflogisticstransportation.JDlogisticwillmakeinvestmentofRMB1billionfortheinstallationoflow-carbonandgreensupplychainandimprovethecarbonefficiencyby35%innext5years.JDLogisticsalsocooperatedwithenergyvehiclemanufactuerstoform“NewEnergyIndustrySymbioticAlliance”,andjointlypromotethenewenergyimplications.Meanwhile,JDLogisitcsisthefirstlogisticscompanyinChinatointroducehydrogenvehicles,ithasregularuseofhydrogenenergydeliveryvehiclesinShanghai,GuangzhouandFoshan.Storage:oJD.comrealizedtheapplicationofwarehouserooftopsolarphotovoltaic(PV)systemsthroughinstallationinShanghai"AsiaNo.1"IntelligentLogisticsPark,andhaveexploredmorelow-carboninnovativesolutionsforwarehousing.Since2020,topromoterenewableandcleanenergy,JD.comhasworkedwiththeirnewenergybusinesspartnerstopromotetheconstructionofsolarPVpowerplantsinsmartindustrialparksnationwide.oIn2017,JDLogisticstooktheleadindeployingarooftopdistributedsolarPVsysteminShanghai"AsiaNo.1"IntelligentLogisticsPark,anditwasofficiallyconnectedtothegridin2018.Atpresent,solarpowergenerationhascoveredtheenergydemandsoftheparkincludingwarehouselighting,automaticsorting,packaging,pickingandothermulti-scenariooperations.In2020,thepowergenerationhasreached2.538millionkWh,equivalenttoapproximately2,000tonsofCO2emissionsreductionsandsavingapproximately800tonsofstandardcoal.Thepowergenerationcapacityisexpectedtoreach100MWbyendof2021andfurtherto1000MWby2024.JDalsoaimstopromotethecarbonneutralcertificationoftheJD'sXi'anandSuqian"AsiaNo.1"IntelligentLogisticsPark.oInaddition,goingforwardallwarehousesconstructedbyJDwillincorporatesolarPVsystemswherethepowergeneratedwillbesoldtotenantsatadiscountedrate.WithJD'sXi'an"AsiaNo.1"IntelligentLogisticsParkasapilotsite,JDplanstocreatearooftopsolarPVpowergenerationareaofmorethan1.5millionm2inTianjin,Hefei,andotherplacesinthefuture,achievingpowergenerationof380megawattsinover50"AsiaNo.1"IntelligentLogisticsParksbyendof2022andfurtherincreasingto700-800megawattsuponcompletionofthe100"AsiaNo.1"IntelligentLogisticsParkstarget.7RESTRICTEDPackaging:AsthefirstlogisticscompanyinChinatofullyimplementgreenpackaging,JDLogisticshasalwayscommittedtogreenandsustainableprinciplesinpackagedesignanduse,strivingtopromoteinnovationinthepackaging,transportation,andstorageprocesses,andusingtheirinfluencetodriveupstreamanddownstreampartnersandconsumerstojointlypromotetheachievementoftheUNSDG12‒ResponsibleConsumptionandProduction.CompanyhasintroducedmultiplemeasurestomakeJD’slogisticsmorecircularandlesscarbon-intensive:ousereusabledeliveryboxestoreducethevolumeofdisposablecardboardandtapeoforfreshproducts,usefoldablethermalinsulationboxes,whichreducetheamountofsingle-useicebagswhilstreplacingdisposablefoamboxesoreplacedisposablewovenbagswithreusabletransferbags,andreplacestretchwrapwithrecycledwindingnetstoreducetheuseofplasticproductsoprovidecircularandsharedlogisticssolutionsfortheindustryoBasedonbigdataandcollaborationwithbrandenterprises,JD.comexplorenewgreenmodelsatthesourcetosolvetheproblemsofdisposablepackagingwastebyreducingcommoditypackaging,usingminimalpackaging,shippinginoriginalpackaging,andimplementingB2Bcircularpackaging,andpaperlessoperationsTohighlightoneofJD’scontributionsintermsofpackagedesign.The63billionparcelsincirculationinChina’slogisticsindustryin2019ledtotheuseofahugeamountoftape.Itturnsoutthatnarrowingthetape,from54mmto45mmasJDdidfouryearsago,canmakeabigdifference.Byadoptingslimmertape,withoutusingtoolittlethatthepackagewouldnotbesealedproperly,over15%oftotaltapeusedhasbeensaved.GiventhemassiveamountofpackagesJDgenerates,theCompanyestimatesthatatleast100millionmetersoftapecanbereducedeachyear.ThisstandardhasnotonlybeenimplementedbyJD;partnersacrossthelogisticsindustryinChinahavefollowedsuit.Tofurtherencourageminimizingpackagingintheindustry,JDinitiatedagreenpackagingstandardsallianceandagreenpackagingR&Dcenterincollaborationwithpartners,bothofwhichareafirstfortheindustry,andcontributetobuildingawarenessandstandardizationofgreenpackagesinthee-commerceandlogisticsindustry.16millionaccumulatedusesofreusableboxesAtotalreductionof180milliondisposablefoamboxesand600milliondisposableicepacksTheaverageutilisationrateofreusabletransferbagsexceeded98%whichsavesnearly80milliondisposableplasticwovenbagsannually10billionfewerpiecesofdisposablepackagingusedindustry-wide400millionfewermetersoftapeusedperyearbypromotingthinnertapeandreusableboxes13,219fewertonsofpaperconsumedperyearduetoelectronicexpresssheetusageAsoftheendof20208RESTRICTEDiii.GreenLifestyleAdvocacyConsumerpreferencesformoresustainablelifestylesandconsumptionareleadingtochangesinmarketdemand.Thisisdrivingindustriestotransitiontowardsgreenerdevelopmentmodels,whichcanleadsustainablelifestyles,andtoparticipateinandpromotesustainabledevelopment.In2019,JDjoinedhandswiththeWorldWideFundforNature(WWF)tolaunchtheGiantPanda-FriendlyEnterpriseAlliance.WiththehelpofJD’splatform,Companydriveupstreambusinesspartnerstodevelopsustainableproductswithagriculturalproductsfrompandahabitats,whileusingtrustworthyproducts.TheInternetplatformprovidesconsumerswithrich,high-quality,andresponsibleconsumptionchoices.Asanindustryleaderinthisneweraofconsumption,westrivetoprovidemoresustainableoptionsthroughourownsupplychain,ecosystem,andbrandinfluence,bypromotingsustainableconsumptionandalifestylethatrecyclesresources,thusfacilitatingthetransitiontoagreenandhigh-qualityvaluechain.SustainableconsumptionoConsumeradvocacy:JDhasheldmorethan100greenpromotionalandeducationevents,callingonhundredsofmillionsofconsumerstoparticipateinenvironmentalprotectionandpublicwelfare.ActivitiesincludeEarthHour,AzureEarthSustainabilityWeek,GreenPackagingDesignCompetition,GreenPackagingForum,WasteClassificationAwarenessCampaign,andtheuseofrecycledpackagingduringmarathons.oPre-lovedobjectsdonationplan:ThroughJDGivingPlatform,JDFoundationhascooperatedwithJDLogisticstoimplementthePre-lovedObjectsDonationPlan.WiththeGreenStreamInitiativeandanationwidelogisticsnetwork,JDLogisticshasworkedwithpartnerstocollect10millionboxesinmorethan100cities.Companyreduced17,500tonsofcarbonemissionsthroughboxrecycling.Atthesametime,4millionpre-lovedobjects(includingclothes,toys,andbooks)arereusedthroughJDFoundation’sCollectingObjectswithLoveplatform.oSafeguardingBiodiversitythroughSustainableConsumption:Toprotectwildlife,JDhashelpedassertstrongerregulatorypressuretoeliminatethetraffickingofendangeredwildlife.Withthescaleoftheplatform,JDtakesactionssuchasregularchecking,shelfcleaning,interceptingsensitivewordsintransit,andsearchblockingtocutoffillegaltransactionsofwildlifeontheplatform.In2020,JDsetupataskforcetoregulatewildlifetradeandestablishedalistofmorethan100typesofwildlife-relatedcommodities.Inaddition,JDhasproducedposterstoprotectendangeredfloraandfauna,raisingconsumerawarenessofwildlifeprotection.9RESTRICTEDZeroWasteCityoCommunityResourceRecycling:JDLogisticslauncheditsboxrecyclingprojectin2016,andextendedthepackagerecyclingtoallcategories,whichincludesplasticbags,plastictapesandbubblewrap,aswellasboxes.10millionboxeshavebeenrecycledbypost-deliveryrecyclingsince2016.2billionnewboxesweresavedbycooperatingwithbrandenterprisestorecycleandreuseboxresources3100,000plasticbottlesfrombrandenterpriseswererecycled4oInnovativeModelsforWasteClassification:InApril2019,theRonghuaSubdistrictOfficeofBeijingEconomic-TechnologicalDevelopmentArea,incooperationwithJD’shouseholdwasteclassificationstation,launchedaninnovativewasteclassificationpilotproject.Thetimescopeofthedata:From2014toDecember31,20204Thetimescopeofthedata:From2014toDecember31,202017,414householdssetupgreencreditaccountsinthearea94%participationratein19residentialcomplexes13,804casesofcreditsexchange16self-servicerecyclingstations26%offoodwastesortedandfilteredoutAchievements:10RESTRICTEDGreenFinanceFrameworkTheJD.comGreenFinanceFramework(the“Framework”or“GFF”)wasdevelopedtodemonstratehowtheGroupincludingitssubsidiariescould,withGreenFinanceTransactions(“GFTs”),fundprojectsthatwoulddeliverpositiveenvironmentalimpactandfostersustainablepracticesinsupportoftheGroup’sgreenandsustainabilitystrategy.GFTswillincludebonds,loansandotherformsofdebtfinancingwithstructurestailoredtocontributetosustainabledevelopmentbyapplicationoftheproceedstoEligibleProjectsCategoriesasdefinedinthisFramework.Withrespecttobonds,bondsissuedunderthisFrameworkwillbealignedwith2021GreenBondPrinciples(“GBP”)byICMA5,orastheymaysubsequentlybeupdated.Withrespecttoloans,loansissuedunderthisFrameworkwillbealignedwiththe2021GreenLoanPrinciples(“GLP”)6andGuidanceonGreenLoanPrinciples7,orastheymaysubsequentlybeupdated.Otherdebt-likefinancingsmayconformtoothergreenfinanceprinciplesasmayhavebeenestablishedatthetimeofsuchfinancingtransactionbeingundertakenGFTsdonotplacerestrictiononthetenorandcurrencyandcanincludeothertermsandconditions(includingcovenants)toreflectthefinancingstrategyandplansoftheGroup,aswellastheoutcomeofthecommercialdiscussionsbetweentheIssuer/BorrowerandManager/Arranger/Lender.GFTsmaybeissuedinanyjurisdictionandmarketreflectingtheGroup’scurrentandfuturebusinessneeds.ForeachGFT,theGroup’smanagementassertsthatitwilladoptthefollowingcorecomponentsoftheGBPandGLP:Useofproceeds;Processforprojectevaluationandselection;Managementofproceeds;andReportingTheFrameworkalsoincludestheappointmentofanexternalreviewprovidertoconfirmthealignmentoftheGFFtotheabovecorecomponents.TheFrameworkwillbeinforceaslongasthereisliveGFTs.TheGroupmayupdatetheFrameworkfromtimetotimeandcommitsthatanynewversionwillkeeporimprovethecurrentleveloftransparencyandreporting.TheGroupcommitstocommunicatechangeswithinvestors/lendersviatheGroup’sofficialwebsite.https://www.icmagroup.org/sustainable-finance/the-principles-guidelines-and-handbookshttps://www.lsta.org/content/green-loan-principles/?wpdmdl=679&refresh=606dc1af337291617805743https://www.lsta.org/content/guidance-on-green-loan-principles-glp/?wpdmdl=13924&refresh=606dc064cef17161780541211RESTRICTED2.1UseofProceedsThenetproceedsoftheGreenBondsandLoanswillbeusedtofundorrefinance,inwholeorinpart,neworexistingeligiblegreenprojectsthatmeetoneormoreofthebelowcategoriesofeligibilityasrecognizedinthe2021GBPandGLP(“EligibleProjects”):EligibleProjectcategoriesmayincludeprojectstakenonbytheGroupduringthe3yearspriortotheissuanceorsigningdateoftherespectiveGFTsandduringthelifeoftheGFTs.OfficialFullName:AssessmentStandardforGreenBuildingGB/T50378-2019CertifiedbytheForestStewardshipCouncil(FSC)andProgrammefortheEndorsementofForestCertification(PEFC)ProjectCategoryEligibleProjectsfortheGroupGreenBuildingsNewconstructionand/orrenovation/refurbishmentofexistingwarehouseand/orcommercialbuildingsthathaveorwillreceive,anyoneofthefollowingcertificationsystems:oHongKongBEAMPlus–minimumcertificationofGold;oroU.S.LeadershipinEnergyandEnvironmentalDesign(LEED)–minimumcertificationofGold;oroInternationalFinanceCorporation(IFC)–ExcellenceinDesignforGreaterEfficiencies(EDGE)Certification;oBREEAM–minimumcertificationlevelofExcellent;oroChineseGreenBuildingEvaluationLabel(GBL)8–minimumcertificationlevelof2stars.EnergyEfficiencyProjectsinvolvingtheupgradingoffacilities/equipment(e.g.liftsystem,lightingsystem,freshairsupplysystem)withmoreefficientsystemofexistingdevelopments.Acquisition,development,construction,operationormaintenanceofdatacenterswithPowerUsageEffectiveness(“PUE”)≤1.3CirculareconomyadaptedproductsRent,procurementandusageofrecyclablepackboxandotherformsofrecycled/waste/bio-based(RSB-certified)/responsibly-sourced9materialsorfeedstocksmaterialsinsupplychain.CleanTransportationInvestmentsassociatedwithreplacingtraditionalfuelvansbyelectricorhydrogenvehicles,andinfrastructureincludingchargingstationsofelectricvehicles.12RESTRICTED2.2ProcessforProjectEvaluationandSelectionJDhasestablishedaESGLeadershipGroup(“ELG”),whichiscoordinatedbytheStrategyExecutionCommittee("SEC”).ELGiscomprisedofexecutivemanagersandseniormanagementacrossfunctions,itwillformaworkinggroupwithmembersfromvariousdepartmentstoidentifypotentialEligibleProjectsbasedontheeligibilitycriteriaoutlinedintheUseofProceedssectionoftheFramework.AGreenFinanceGroup(“GFG”)isestablishedwithresponsibilityofgoverningtheJDGreenFinanceFramework.GFGwillreviewanddecidetheallocationofgreenfinanceproceedstowardtheshortlistedportfolioofEligibleProjects.GFGischairedbyChiefFinancialOfficerandcollaborateswithinternalstakeholdersincludingPublicRelations,InvestorRelations,TreasuryandCorporateSocialResponsibilityteams.JD.comhasanESGgovernancesysteminplacewhichincludestheESGWorkingGroupthatisresponsibleforidentifyingandmanagingESGrisks.Followingthesystem,theCompanywillcarryoutenvironmentalandsocialriskmanagementprocessesintheprojectidentificationstage,underthesupervisionoftheELG.2.3ManagementofProceedsThenetproceedsfromeachGFTissuedwillbemanagedbytheGroup’streasuryteamandtheproceedsofeachGFTwillbedepositedinthegeneralfundingaccounts.AllofthenetproceedsfromeachGFTwillbeearmarkedforallocationtoEligibleProjects,inaccordancewiththeGFF.TheGroupwillmaintainaregistertokeeptrackoftheuseofproceedsforeachGFT.Theregisterwillcontainthefollowinginformation,including:i.TypeofFundingTransactionKeyinformationincludingtheissuer/borrowerentity,transactiondate,principalamount,repaymentoramortizationprofile,maturitydate,interestorcoupon,andtheISINnumber(inthecaseofbondtransactions).ii.AllocationofUseofProceedsNameanddescriptionofEligibleProjectstowhichthenetproceedsoftheGFTshavebeenallocatedtoinaccordancewiththeFrameworkAllocationofthenetproceedsofGFTstoEligibleProjectsThebalanceofunallocatedproceedsInformationoftemporaryinvestmentforunallocatedproceedsTheGroupiscommittedtoallocatingallnetproceedsfromtheGFTstoEligibleProjectsexclusivelyonabesteffortbasiswithinoneyearoftheGFTissuanceinaccordancewiththeevaluationandselectionprocesssetoutabove.Pendingallocation,thenetproceedsfromtheGFTsissuedmaybeinvestedincashorcashequivalents,orusedtorepayexistingborrowingsoftheGroup.RenewableEnergyDesign,construction,installationandoperationofrenewableenergysystems,includingphotovoltaicpowerstationandsolar(photovoltaic)forrooftopofwarehouses.13RESTRICTEDDuringthelifeoftheGFTissued,ifthedesignatedproject(s)ceasetofulfilthecriterianecessaryforittobedeemedanEligibleProject,thenetproceedswillbere-allocatedtoanalternativeEligibleProject(s)thatcomplywiththegreenfinancingeligibilitycriteriaoutlinedabove,assoonasreasonablypracticable.2.4ReportingTheGroupwillprovideinformationontheallocationofthenetproceedsofitsGFTsviaJD.com’sSustainabilityReports,AnnualReports,orcorporatewebsite.Suchinformationwillbeprovidedonanannualbasisuntilfullallocation.Theinformationwillcontainatleastthefollowingdetails:i.AllocationReportingTheGroupwillannually,andonatimelybasisincaseofmaterialdevelopments,providethefollowinginformationforthenetproceedsoftherelevantGFTsduringtheperiod:TheamountofnetproceedsthathavebeenallocatedtooneormoreEligibleProjectseitherindividuallyorbycategory;Theremainingbalanceoffundswhichhavenotyetbeenallocatedattheendofthereportingperiod.Shareoffinancingvs.refinancingii.ImpactReportingWherepossible,theGroupwillreportontheenvironmentalimpactsassociatedwiththeEligibleProjectsfundedwiththenetproceedsoftheGFT(s).SubjecttothenatureofEligibleProjectsandavailabilityofinformation,theGroupwillincludeitsselectiveimpactindicatorsfromthefollowing,butnotlimitedto:14RESTRICTEDAppropriateenvironmentalandsocialimpactindicatorswillbedeterminedinreferencetoframeworksandresourcespublishedbyICMA,suchastheHarmonizedFrameworkforImpactReportingDecember2020.Https://www.icmagroup.org/green-social-and-sustainabilty-bonds/impact-reportingEligibleCategoriesImpactIndicators10GreenBuildingsTypeandlevelofgreenbuildingcertificationsobtainedEnergyefficiencygainsinMWhor%vs.baselineAnnualGHGemissionsreduced/avoided(tCO2eq)Annualenergysavings(MWhpa)Annualreductioninwaterconsumption(m3)EnergyEfficiencyAnnualenergysavingsinMWh/GWh(electricity)andGJ/TJ(otherenergysavings)AnnualGHGemissionsreduced/avoided(tCO2eq)Trailing12-monthPUECirculareconomyadaptedproductsAnnualtonnesofwasteavoided/divertedfromlandfillPercentageofpackagingmaterialrecycledCleanTransportationNumberofelectricorhydrogenvehiclesNumberofchargingpointsforelectricvehiclesAnnualGreenhouseGas(GHG)emissionreducedoravoided(tCO2e)RenewableEnergyAnnualRenewableenergyproduced(MWhpa)Renewableenergycapacity(MW)QuantityofphotovoltaicpanelsinstalledandelectricityproducedinIDCs,warehousesorofficebuildingsAnnualGHGemissionsreduced/avoided(tCO2eq)15RESTRICTEDExternalReviewTheGrouphasengagedSustainalyticstoprovideaSecondPartyOpinion(“SPO”)ontheenvironmentalandsocialbenefitsofthisGreenFinanceFrameworkaswellastheFramework’salignmenttotheGLP,GBPandothersustainablefinanceprinciplesasmayhavebeenestablishedatthetimeofsuchafinancingtransactionbeingundertaken.TheSPO,togetherwiththeFrameworkwillbeavailableatitswebsite.
VIP
