CarbonNeutralityWhitePaperContentsIntroduction:StarttheJourneytoBaozun’sNetZeroCarbonEmissions01OurCommitmenttoCarbonNeutrality02Outlook23AboutThisReport24CarbonNeutralityGovernanceSystem05ClimateGovernanceFramework05PromotionMechanismForCarbonNeutralityManagement06ClimateChangeRisksandOpportunities07IdentificationofClimateChangeRisksandOpportunities07ManagementofClimateChangeRisks09OurCarbonNeutralityStrategy10Focus:DeliverLow-carbonProductsandServices12Drive:BuildaGreenE-commerceEcology15Co-creation:CooperationforaSustainableFuture17IndicatorsandGoals19GreenhouseGasEmissionData19ScientificSettingofCarbonEmissionTargets21CarbonNeutralityRoadmap22BaozunInc.01Climatechangeposesathreattotheentireinternationalcommunity,andChinaplaysavitalroleinglobalclimategovernance.In2020,ChinesePresidentXiJinpingmadeasolemncommitmentof"strivingtoachievepeakcarbondioxideemissionsby2030andcarbonneutralityby2060".Inevitably,enterpriseswillneedtomakeoverallarrangementsintheirmediumandlong-termstrategiestomeettheultimategoalof“carbonneutrality”.Asaleaderinthebrande-commerceserviceindustryinChina,BaozunInc.(includingitsconsolidatedsubsidiariesanditsvariableinterestentityanditssubsidiaries,hereinafterreferredtoas"theCompany""Baozun""BaozunInc."or"we")servesasabridgebetweenbrandsandconsumers,andshouldersthemissionofbuildingandguidingthegreenandsustainableconsumptionandproductconcepts.Assuch,wehaveformulatedthegoalsandcommitmentsof“BaozunCarbonNeutrality”,whichwillguideourenterprisethroughthiscriticalstage.In2021,weraisedgreenandsustainabledevelopmenttoastrategiclevel.Wehaveestablishedaclimatechangegovernanceframeworkandasupportingmechanismforcarbonneutralitymanagement.TheBoardofDirectorsfullyoverseesandtakesresponsibilityfortheCompany’sclimatestrategy.Atthesametime,werealizethattheprocessofachievingcarbonneutralitygoalraiseshigherrequirementsfortheCompany'sinternalandexternalenvironmentalmanagementcapacityandriskmanagementcapacityonclimate-relatedrisks.Tomeetsuchrequirements,weneedtointegratetheconceptofsustainabledevelopmentintoourdailyoperationsandcorporateculture.Wearewellawarethatjointeffortsofthewholevaluechainareindispensabletorealizethegreenecologyoftheindustryandpromoteresponsibleconsumption.Therefore,inadditiontobuildingasoundmanagementplan,wewillworktogetherwithallstakeholderstopracticegreensustainability,buildarobustgreene-commerceecology,andactivelycombatclimatechange.Introduction:StarttheJourneytoBaozun’sNetZeroCarbonEmissionsCarbonNeutralityWhitePaper02Basedontheinspectionandmanagementofourowncarbonemissions,combinedwithourunderstandingofindustrialandsocialdevelopment,wehavesetourcarbonneutralitygoalsasfollows.Weplantoformulatescientific,reasonableandeffectiveimplementationstrategiestofacilitatetherealizationofourgoalsandmakeBaozunapositivecontributorintheprogressofglobalcarbonneutrality.OurCommitmenttoCarbonNeutralityCarbonneutralitygoals◍OurCommitmenttoCarbonNeutralityToreducecarbonemission(ScopeI,II)by50%by2030againstbaseyearFY2021;toreducecarbonemission(ScopeIII)by50%by2030againstbaseyearFY2021Toachievecarbonneutralityacrossthevaluechain(includingScopesI,IIandIII)by2050Medium-termgoalLong-termgoalBaozunInc.03ThedirectemissionsfromgreenhousegassourcesownedorcontrolledbyBaozunwere454.79tCO2e,accountingfor2.63%,oftotalemissions,whichmainlycamefromthedieseloil,gasolineconsumptionandnaturalgasconsumptionofself-ownedvehicles.TheindirectemissionsofgreenhousegasgeneratedfrompurchasedelectricitybyBaozunwere16,867.71tCO2e,accountingfor97.37%oftotalemissions,whichmainlycamefromtheelectricityconsumptionfromBaozun’sofficesandwarehouseoperations.AllotherindirectemissionsgeneratedbyBaozun'svaluechainwere145,531.68tCO2e,whichmainlycamefromthepackagingprocurement,leaseddatacenters,employeecommutingandtravel,downstreamtransportationandstorage.ScopeIScopeIII145,531.68tCO2eScopeII16.867.71tCO2eScopeI454.79tCO2eScopeIIScopeIIIEmissionsinbaseyear◍TotalamountandcompositionofgreenhousegasemissionsbyBaozunin20211.Emissionaccountingboundary:AccordingtotheGreenhouseGasProtocol:ACorporateAccountingandReportingStandarddevelopedbyWRI(WorldResourcesInstitute)andWBCSD(WorldBusinessCouncilforSustainableDevelopment),theorganizationalboundariesshallbedeterminedusingthecontrolrightmethod,whichmeans,thegreenhousegasemissionsfromallofficeareasandlogisticswarehouseswithinthebusinessscopeoftheCompanyshallbereported.ThereportingboundariesincludetheofficeareainShanghaiHeadquartersandtheBaotongE-logisticsWarehousePark.2.In2021,theScopeIIIofgreenhousegasemissionscalculatedmainlyincludestheemissionsfromleaseddatacenters,packagingprocurement,employeecommutingandtravel,anddownstreamtransportationandstorage.162,854.18tcarbondioxideequivalent1CarbonNeutralityWhitePaper04OnthebasisofTCFD'sriskanalysisframework,weidentifypotentialrisksandopportunitiesforoperationalactivitiesandtakeclimatechangerisksandopportunitiesaspartofourfutureoveralloperationalriskmanagement;RiskmanagementWeevaluatethepotentialoperationalandfinancialimpactofthesignificantrisksandopportunitiesfortheCompany;Takemanagementactionstoreducethecarbonfootprintduringthefulllifecycleofoperation;StrategyWesetgoalsforreducinggreenhousegasemissions,andevaluateclimatechangemanagementperformanceleveloftheCompanytoformulateimprovementplansbydisclosinggreenhousegasemissionsandemissiondensityinthesustainabledevelopmentreporteveryyear.TheCompanyhasidentifiedmitigationofclimatechangeasoneoftheprioritiesofworkforeachbusinessunitaswellaslogisticsandsupplychainmanagement;Governance◍ClimatechangemanagementsystemToensureeffectiveclimategovernance,wefollowedtherecommendationsoftheTaskForceonClimate-relatedFinancialDisclosures(TCFD),asubsidiaryoftheFinancialStabilityBoard,andidentifiedclimate-changerelatedrisksandopportunities,augmentingourmanagementstyletoactivelyaddressclimatechange.In2021,Baozunlaunchedoperationsfocusingoncreatinglow-carbonproductsandservices,drivingsupplierstoco-buildagreene-commerceecology,andcollaboratingwithmanypartnersforasustainablefuture.KeyactionsforcarbonneutralityGreenlogistics,greenwarehousingandgreenpackagingPromotethegreendevelopmentofsuppliers,andmakeeffortstobuildagreene-commerceecologyWorktogetherwithemployees,brandpartners,consumersetc.toadvocateforasustainableproductionandlifestyle,andmakejointeffortsforthereductionofcarbonemissionsFocus:Deliverlow-carbonproductsandservicesDrive:Buildagreene-commerceecologyCo-creation:CooperationforasustainablefutureGoalsandperformanceBaozunInc.05CarbonNeutralityGovernanceSystemToachievethegoalofcarbonneutrality,theCompanyneedstoestablishacomprehensivegovernancesystemforclimatechangefromtoptobottom.Baozunhasformedaclimatechangegovernancestructurethatcanbedividedintothreelevels:strategiclevel,managementlevel,andimplementationlevel.TheBoardofDirectorsisresponsibleforsupervisingandformulatingtheCompany'smedium/long-termmanagementstrategiesanddirectionstocopewithclimatechange.Themanagementlevelintegratesthecross-departmentresourcesrequiredforclimateaction,coordinatingdecision-makingandarrangementsformajorprojects,andreportstotheBoardofDirectors.Intermsofplanningandimplementation,theCompanysetsupaclimatechangeworkinggroupinchargeofexecutingrelevantdecisions.ClimateGovernanceFramework◍ClimatechangegovernancesystemBoardofDirectorsManagementlevelClimateChangeWorkingGroupStrategiclevel•Evaluatetherisksandopportunitiesrelatedtoclimategovernance•Supervise,approveandformulatetheclimatestrategiesandtargetsoftheCompany•InvestigateandreviewtheCompany'sachievementsontheclimategoalsonaregularbasisManagementlevel•Formulate,guideandreviewclimatestrategies•Promotealldepartmentstoimplementcarbonneutralitymanagementactions•IdentifyandevaluateclimaterisksandofferadvicetotheBoardofDirectors•Organizecompanyresourcesandimplementlow-carbonworkImplementationlevel•ImplementthedecisionsmadebytheleadinggroupCarbonNeutralityWhitePaper06EvaluationandassessmentsystemforcarbonneutralityIntegratethecarbonmanagementinformationofsuppliersTheCompanyhasestablishedapromotionmechanismforcarbonneutralitymanagement,whichcoversemployeesandupstreamanddownstreampartners.TheCompanyaimstoachievecarbonneutralityinitswholevaluechainthroughstrengtheninginternalandexternalcooperation,andactivelypromotingcarbonneutralityinthesupplychain.PromotionMechanismForCarbonNeutralityManagementEnvironmentalmanagementlevelsSpecificdutiesStrategiclevelTheBoardofDirectorsisresponsibleforformulatingtheCompany'sclimatestrategiesandsupervisingthemanagementstrategiesrelatedtoclimateissues,aswellassupervising,checkingandevaluatingtheCompany'srelevantproposals,including:•EvaluatingclimategovernancerelatedrisksandopportunitiesfortheCompany;•Ensuringtheestablishmentofanappropriateandeffectiveclimategovernanceriskmanagementsystemandinternalcontrolsystem;•Supervising,approvingandformulatingtheclimatestrategiesandgoalsoftheCompany•InvestigatingandreviewingtheCompany'sperformanceonclimategovernancegoalsonaregularbasis.ManagementlevelThemanagementleveltakesfurthermeasurestomanageclimatechangerisk,andformulatecarbonneutralitygoalsaswellasactionplans,including:•Formulating,guidingandreviewingclimatestrategies,andpromotingESGrelatedconceptsinsideandoutsidetheCompany;•Promotingtheimplementationofcarbonneutralitymanagementactionsacrossalldepartments,andbeingresponsiblefortheimplementationofgoals;•Identifyingclimaterelatedrisksannually,evaluatingtheimpactofsuchrisksontheCompany,andofferingadviceonriskresponsestotheBoardofDirectors;•OrganizingandcoordinatingdepartmentsandresourcesoftheCompanytooffersupportinimplementinglow-carbonwork.ImplementationlevelTheclimatechangeworkinggroupisresponsibleforimplementingthedecisionsmadebythegroup,including:•ImplementingtheCompany'scarbonneutralityplan,actionplanandtargets,andregularlyreporttheworkprogresstothemanagement;•CollectingorprocessingissuesfoundintheprocessofimplementingcarbonneutralityplanoftheCompany,andconveningmeetingsofgroupmembersinaregularorirregularmannerforthepurposeofresearch,coordinationandpromotion.•Incorporatetheimplementationofcarbonneutralitygoalsintotheperformanceassessmentofrelevantdepartmentheads,andestablishanoptimalevaluationandassessmentsystem.•Establisharewardsystembasedonthecarbonneutralityperformanceevaluationresultstorewardthosewhomeettheirtargets,andproviderelevanttrainingforthosewhogetpoorscoresinperformanceassessments.•Strengthenthecarbonemissionmanagementofsuppliers,andtakeintoconsiderationthecarbonemissionsandenergyefficiencyintheonboardingandassessmentofmanufacturingandrawmaterialsuppliers,toachievethecarbonneutralitygoalthroughouttheentiretyofthevaluechain.•Establishavaluechaincarbonemissiondatamanagementsystemtointegratethecarbonemissiondatageneratedbyupstreamsuppliersanddownstreamlogisticsandtransportationforeasieraccountingandmanagement.•Forpackagingsuppliers,suppliersareencouragedtobecomesustainability-relatedcertificationssuchasFSCorCFCCtoensuretheircarbonreductionefforts.BaozunInc.07Inordertobetteridentifyandreducethepotentialimpactofclimatechange-relatedrisksonbusinessperformanceandeffectivelymanageclimate-relatedissues,Baozunhasconductedanidentificationofclimate-relatedrisksandopportunitiesandananalysisoftheirfinancialimpactontheCompany’sbusinessthroughpolicyreview,peerbenchmarkinganddepartmentalinterviews.InFebruary2022,theIntergovernmentalPanelonClimateChange(IPCC)emphasizedinitsreportClimateChange2022:Impacts,AdaptationandVulnerabilitythattheimpactsandrisksofclimatechangeareincreasing,andglobalwarmingwillcausemultipleclimatehazardsaroundtheglobeinthenext20years.Climatechangeiscloselyrelatedtogreenhousegasemissions.Controllinggreenhousegasemissionsasastrategytoslowdownglobalclimatechangehasbeenmetwithglobalconsensus.IdentificationofClimateChangeRisksandOpportunitiesClimateChangeRisksandOpportunities◍Climate-relatedriskandopportunityanalysisapproachIdentificationEvaluationAnalysis•Identifypotentialriskandopportunitycategoriesbasedonafullconsiderationofgeographicallocationandbusinesstypes.Atotaloffiveclimate-relatedrisksandthreeclimate-relatedopportunitieswereidentified.•Identifyandevaluatethemodeanddegreeofpotentialfinancialimpactthroughinternaldiscussionandincombinationwithbusinessdevelopmentstrategyandexpertjudgments.•Constructtheclimate-relatedriskandopportunitymatrixaccordingtoassessmentresults,andidentifythepriorityofrisksandopportunitiesincombinationwiththelikelihoodofrisksandopportunitiesandtheirpotentialdegreeofimpactontheCompany.CarbonNeutralityWhitePaper08◍Climate-relatedriskandopportunitymatrix◍FinancialimpactanalysisofclimaterisksPolicyandlegalriskAdaptabilityReputationriskAcutephysicalriskResourceefficiencyResourceutilizationriskTechnicalriskMarketopportunityHighHighLowDegreeofimpactofrisksandopportunitiesProbabilityofoccurrenceofrisksandopportunitiesClimate-relatedrisksClimate-relatedopportunitiesTypeDegreeofimpactSpecificdescriptionPotentialfinancialimpactResourceutilizationriskHighTheshortageordecreaseinavailabilityofresourcessuchasenergy,waterresources,andmaterialsrequiredintheprocessofproductionandoperationmaybecausedbyclimatechange.ThismayleadtoanincreaseinthepriceofresourcesusedbytheCompany.•Theriseinpricesofrelevantresourceswillcauseanincreaseinoperatingcosts.•Constraintsinresourceusagemaylimitbusinessoperations,whichinturnwillcauseadecreaseinrevenue.TechnicalriskHighIntheprocessoftechnologicaltransition,thedevelopmentandapplicationofenergy-savingandenvironmentalprotectiontechnologiesforwastetreatment,greenpackaging,etc.mayaffecttheCompany'soperationsandbusinesses.•Intheprocessoftechnologicaltransition,investmentinR&Dcostsincreases,whichinturnwillcauseanincreaseinoperatingcosts.•Thecostofnewtechnologyinvestmentleadstoanincreaseinthepriceofproductsandservices,whichinturnwillcauseadecreaseinrevenue.ReputationriskMediumFailuretorespondtostakeholders’expectationsregardingproactivemanagementactionsandtheimprovementofinformationdisclosuretransparencyinaddressingclimatechangewillhaveanimpactonthereputationoftheCompany.•Reputationisaffected,whichwillcauseadecreaseinrevenue.AcutephysicalriskMediumSevereclimateabnormalities,suchastyphoonsandfloods,willcauseextremeweatherornaturaldisasters,whichmayaffecttheupstreamanddownstreamsupplychainsoftheCompany.•Thedisruptionincooperationbetweenupstreamanddownstreamsupplychains,whichwillcauseadecreaseinrevenue.•TheCompany'soperatingcostswillincreaseduetothedisasters.PolicyandlegalriskLowTheriskoflegalliability,regulatoryaction,disciplinaryaction,lossofpropertyorlossofbusinessreputationmayoccurduetofailuretocomplywithclimate-relatedpoliciesorlaws.•Revenuewilldecreaseduetoregulatoryeffect.•Creditriskincreases,whichwillcauseitmoredifficultfortheCompanytoraisefunds.BaozunInc.09◍FinancialimpactanalysisofclimateopportunitiesInordertosystematicallypromotetheCompany'sclimatechangeriskmanagementgoals,Baozunadoptedasystematic,risk-basedandregularmanagementmethodin2021toimplementclimatechangeriskmonitoring,anearlywarningsystem,riskidentificationandassessment,riskresponse,supervisionandinspection.Baozunhasadopted"threelinesofdefense"forclimatechangeriskmanagement.Inparticular,in2021,BaozunInc.establishedtheSustainabilityCommitteeconsistingofboardmembersandseniormanagement,anditalsosetupaWorkingGrouponSustainableDevelopmentthatisresponsibleforimplementinginternalriskmanagementstrategies.TheSustainabilityCommitteeisresponsibleforidentifyingmajorrisksandopportunitiesfacingthecompanyandcontinuouslymonitoringtherisks.TheAuditCommittee,asthethirdlineofdefense,isresponsibleforevaluatingandimprovingtheeffectivenessofriskmanagement,controlandgovernanceprocesstorealizethecomprehensiveriskmanagement.ManagementofClimateChangeRisksTypeDegreeofimpactSpecificdescriptionPotentialfinancialimpactMarketopportunityHighInthecontextoftransitioningtoalow-carboneconomy,thesocialdemandforlow-carbonproductsandservicesmaygrow.IftheCompanyisinawell-knownpositioninthisregard,itmayattractmorecustomersandconsumers.•Thepublicgainsrecognitiontowardsgreenconsumption,whichwillleadtoincreaseinrevenue.ResourceefficiencyMediumTheenhancedutilizationefficiencyofresourcessuchasenergy,waterresources,andmaterialsintheproductionandoperationprocesswillmakeapositivecontributiontoglobalcarbonreduction.Bymonitoringthepriceofpackagingmaterials,thelogisticsandtransportationmarketpriceandtheutilizationofresources,theCompanycangraspthemarkettrendtoformulatetheoptimalandeffectiveplan.•Resourceutilizationefficiencyisincreased,andoperatingcostswillbedecreased.AdaptabilityMediumThroughbusinessresearchandindustryexchangesrelatedtoclimatechange,theCompanyactivelyformulatescarbonneutralityplans,launcheslow-carbonproductsandservices,takesmeasurestoimproveenergyefficiency,buildsasustainablevaluechain,andcontinuouslyimprovesitsresiliencetoclimatechange.•Theadaptabilitytoclimatechangeissuesisimproved,whichwillcauseanincreaseinrevenue.TheWorkingGrouponSustainableDevelopmentisresponsibleforthespecificimplementationanddailysupervisionofinternalriskmanagementstrategies.ThefirstlineofdefenseTheSustainabilityCommitteeisresponsibleforidentifyingandrecommendingcorporatestrategiesonenvironmental,socialandgovernanceissuesandidentifyingmajorrisksandopportunitiesfacingthecompany,assessingtheimpacttimeframeandpotentialfinancialimpactofmajorclimateriskevents,andcontinuouslymonitoringrisks;TheAuditCommitteeevaluatesandimprovestheeffectivenessofriskmanagementmethods,aswellasthegovernanceprocess,inordertoachieveoptimalriskmanagement.ThesecondlineofdefenseThethirdlineofdefenseCarbonNeutralityWhitePaper10Baozuniscommittedtoprovidinge-commerceoperationsolutionscenteringonITsolutions,onlinestoreoperation,digitalmarketing,customerserviceandwarehousingandfulfillment.Weprovideomni-channelsolutionsacrossofficialbrandshoppingmalls,onlineshoppingplatforms,socialmobilemallsandofflinesmartstores.Basedonthejointapplicationofintelligentdigitaltechnologiessuchascloudcomputing,bigdataandAItechnology,andincombinationwithBaozun'sintensivedevelopmentinallfieldsofsupplychain,wehavebuiltaconnectivebridgebetweenbrandsandconsumers,andhavebecomeamajorforcedrivingtheboomoftheomni-channele-commerceecology.Ourservicessuchasonlinestoreoperationsanddigitalmarketingarecarriedoutonline.CarbonemissionsmainlycomefromtheCompany'selectricityconsumption.Inwarehousingandlogisticsservices,thegreenhousegasemissionsgeneratedmainlycomefromdirectenergysuchasgasolineanddieselandindirectenergysuchaselectricityconsumption,aswellastheindirectcarbonemissionsgeneratedbypackagingmaterials,aviation,highwaysandwarehousing.InaccordancetothephilosophyoftheLifeCycleAssessment,Baozunanalyzesandcalculatesthecarbonemissionsgeneratedinallbusiness-relatedprocedures,specifiesthegreenhousegasemissionsgeneratedinthewholebusinessoperationalstageoftheCompany,andfurthersortsouttheCompany'sstrategiestocopewithclimatechange.OurCarbonNeutralityStrategyLifeCycleUpstreamSelf-operationDownstreamKeyoperationprocessProcurementofpackagingmaterialsLeaseddatacenterEmployeecommutingandtravelOfficeoperationLogisticsandwarehousingLogisticsandwarehousingTypeofemissionsinvolvedScopeIIIScopeIIIScopeIIIScopeIandscopeIIScopeIandscopeIIScopeIIIGreenhousegasemissions(tCO2e)13,415.2814,631.55759.404,908.1912,414.31116,726.45Notes:TheoperationalstagesmarkedwitharethekeyoperationprocessofcarbonreductionidentifiedbyBaozun.BrandpartnerConsumersBaozunOnlinemarketplaceProductionofgoodsUseofgoodsWarehousingPackagingDownstreamtransportationofgoodsUpstreamtransportationofgoodsOfficialbrandstoresSocialmediachannelE-commerceecologyBaozunInc.11Basedontheresultsofcarbonemissionsinspection,Baozunhasidentifiedtheprocurement,logisticsandwarehousingofpackagingmaterialsasthekeyoperationalcomponentforcarbonemissionsmanagement.Withdigital-intelligentinnovationtechnologiesasthecore,wewilldeliverlow-carbonproductsandservices,buildagreene-commerceecology,andtakeactionsfromthreedimensions.Wefocusonourownoperationsanddeliverlow-carbonproductsandservicestoachievecarbonneutralityinscopeIandII.Inaddition,throughactivecooperationwithemployees,brandpartnersandconsumers,wejointlyadvocateasustainablelifestyle,promotetheconstructionofagreenvaluechain,andsupporttheachievementofChina'sgoalsof"carbondioxidepeakingby2030andcarbonneutralityby2060".◍ProportionofGreenhouseGasEmissionsinEachOperationProcess◍CarbonNeutralityCoreStrategyofBaozunGreenhousegasemissionsinScopeIGreenhousegasemissionsinScopeIIGreenhousegasemissionsinScopeIII8%29%1%92%71%80%OfficeoperationOfficeoperation10%EmployeecommutingandtravelLogisticsandwarehousing(self-owned)Logisticsandwarehousing(self-owned)Logisticsandwarehousing(notself-owned)9%ProcurementofrawmaterialsLeaseddatacenterDigital-intelligentinnovationFocusDeliverlow-carbonproductsandservicesCo-creationCooperationforasustainablefutureDriveBuildagreene-commerceecologyCarbonNeutralityWhitePaper12BaotongCubeAutomatedLogisticsCentercoversanareaofnearly50,000m2.Itappliesintelligentrobots,conveyingandsortingsystemstoprocessover300,000orderseachdayatB2Cend.Intelligentlogisticsbringsconvenientconsumptionexperienceforthecustomers,andacceleratestheoperationalefficiencyofthelogisticscenter.Mainstrategy:Greenlogistics,greenwarehousingandgreenpackaging◍Deliverlow-carbonproductsandservicesBaozunfocusesondeliveringlow-carbonproductsandservices.Fromtheperspectiveofthelifecyclemanagement,wethinkdeeplyhowtoprovidelow-carbonproductsandservicesforbrandpartnersandactivelyimplementourideations.WehaveestablishedtheBaotongE-logisticsTechnology(Suzhou)Limited,asubsidiary.Throughuseofdigital-intelligentinnovationtechnologies,weprovide"fullchain"greenandlow-carbonwarehousingandlogisticsservicesforourbrandpartnersandprovidesupportandoptimizationfortheirwarehousingandlogistics.Establishanautomatedlogisticscentertoimprovelogisticsandtransportationefficiency.Promotereductionofpackagingandminimizetheuseofplastics.Optimizewarehousingequipmenttoreduceelectricityconsumption.Focus:DeliverLow-carbonProductsandServicesGreenlogisticsBaozunbuilt"BaotongCubeAutomatedLogisticsCenter-BrandEffectAssistant",whichusesintelligentrobotstoconveyandsortsystems.Inaddition,intelligenttransportationplatformsareappliedtoincreasetheprocessingefficiencyandpromoteenergysavinginthelogisticscenter.Meanwhile,weprovidedistributiondemandanalysisforbrandpartners,aimingtooptimizethetransportationrouteandimprovelogisticstransportationefficiencyinouroverallplanningforourdistributionnetwork.GreenlogisticsGreenwarehousingGreenpackagingBaotongCubeAutomatedLogisticsCenterTofurtherreducethegreenhousegasemissionsinlogisticsoperationandrespondtothenationalplanfordevelopinggreencargochannels,Baozunwillfurtheroptimizethelogisticsforminthefuture,promotethedevelopmentoffreighttransporttowardsthemodeofhighway-railwaytransformationandhighway-waterwaytransformation,andincreasetheproportionofcargotransportationthroughrailwayandwaterway.Intermsofmedium/longdistancetransportation,wewillmainlyuserailwayandwaterwaychannelstoreducecarbonemissionsgeneratedbyairtransportationandhighwaytransportation.BaozunInc.13GreenwarehousingBaozunbuilt"BaotongNationalWarehousingCenter-BrandInventoryManager",whichimplementsthewarehousingnetworkplanningbasedonbigdata,andlaunchedstructuraladaptationsofmultiplewarehousesacrossthecountrytoimproveefficiencyofdeliveryfromwarehousetoconsumers.Intermsofwarehousingmanagement,BaozunhasformulatedtheEnergySavingManagementRegulationforWarehouseOperations.LEDenergysavinglightingsystemisadoptedinthefactoryarea,andlightingcontrolisadoptedinnon-operationareastoreduceenergyconsumption.Basedonprofessionalanalysisonconsumptiondata,Baozunhassetup12warehousingcentersacrossthecountryandcompleteditswarehousingnetworkplanning.Weplantoimprovethelayoutandconstructionofwarehousingcenterswithinthreeyears,givefullplaytothedistributionroleofwarehousingcenters,increasedistributionefficiencyandsaveresourcecosts.In2021,inactiveresponsetothenationalappealof"greenenergy,energysavingandemissionreduction",BaozunpromotedthecooperationinsolarphotovoltaicprojectwithStateGridJiangsuIntegratedEnergyServiceCo.,Ltd.undercoordinationofWujiangDistrictDevelopmentandReformCommission,andprovidedon-sitesupportfortheproject.Theannualelectricityproductioncapacityinthisprojectis3millionkWh,whichwillbedirectlydeliveredtoWujiangNewEnergyTownthroughbooster,andisexpectedtoreduceabout2,620tcarbondioxideemissionseachyear.InBaozunYongdingLogisticsPark,wecontinuetooptimizethedetailsofwarehousemanagement,therebyreducinguseofenergy.•Lightingenergy-savingretrofit:Thenormally-onlampsincorridors,pickingareas,toiletsetc.inthewarehouseareretrofittedintovoice/light-activatedinductionlampstoreduceelectricityconsumption;•Reducingpipelineno-loadsleeptime:Theno-loadsleeptimeoftheoriginalassemblylinewas40s.Onthepremiseofmeetingtheproductiondemand,itwasreducedfrom40sto20stoavoidequipmentlossandtoreducepowerconsumption.Low-carbonCubeAutomatedWarehouse◍NationalWarehousingCenterLayoutandThree-yearPlanningCarbonNeutralityWhitePaper14GreenpackagingThewarehousingandlogisticsservicesofferedbyBaozuninvolvetheuseofpaperandplasticpackagingmaterials.Bymeansofpackagingreductionandrecycling,wewillcontinuetoreducepackagingamountandrealizegreenpackaginginabetterway.ReduceduseofwrappingfilmUseofrecycledcartonsReducedouterpackageReducedtape•Replaced50cm-widthwrappingfilmwith30cm-widthwrappingfilmduringfullcontainerload-storageandwarehouseallocationprocess,therebyreducingtheuseofwrappingfilmbyapproximately9tonsinQ32021.•Usingrecycledcartonboxfordistributionpackagingandreturn-to-warehousepackaging,therebyreducingtheuseofpackagingmaterials.•Usingfoldingboxesandreplacingtapewithboxstickersinsingle-piecefootwearorders,therebyreducingtapeusageby76.9tonsin2021.•ChangedthewidthofBaozunlogostickerandscotchtapefrom6cmto4.8cm,whichfurtherreducedtheamountoftapeusedinsubtleties.ReduceRecycleBaozunInc.15Baozunpayssignificantattentiontotheconstructionofe-commercegreenecology.Asanimportantpartnerofbrande-commercecustomers,wetaketheinitiativetodriveupstreamanddownstreamsupplierpartnerstobuildagreene-commerceecologyandpromoteecologicalcarbonemissionreductioninthewholevaluechain.Aspartofourcategorysourcingstrategy,weintroducetheconceptofTotalCostofOwnership(TCO),ratherthansimplypayingattentiontotheprice,whichprovidesguidanceonsupplierselectionfore-commercebrandpartnersonthevaluechain.Weconsiderenvironmental,socialandethicalstandardsduringtheprocurementlifecycle.Basedonthetotalcostofownershipthroughoutthelifecycle,wepromotetheprocurementprocessofe-commercebrandpartnerstobegreenerandlow-carbonwhilecooperatingwiththemtoreducecarbonemissionsonthewholevaluechainfrompackagingtothewarehouseandlogistics.Drive:BuildaGreenE-commerceEcologyMainstrategy:SelectsuppliersbasedonTCOprocurementconceptandprovideguidanceonsupplierselectionfore-commercebrandpartners◍Buildagreene-commerceecologyBasedontheTCO,weprefertoselectsupplierswhoshowexcellentenvironmentalperformanceandareabletoprovidelow-carbonproductsandservices.BasedontheTCO,weprovideguidanceonsupplierselectionfore-commercebrandpartnersonthevaluechain.SuppliersBrandPartnersSupplieronboardingBaozunadherestotheprincipleofgreenprocurementandconductsstrictinspectionintermsofsuppliercomplianceandonboardingtoensuretheircompliancewithBaozun’srequirementsforsupplierenvironmentalmanagement.ThenewsuppliersarerequiredtofillouttheSupplierInformationForm,whichoutlinesclearrequirementsforsuppliers'environmentalperformance,includingtheirplansandactionstoreduceenergyconsumptionandemissions,andtoconductgreenhousegasemissioninspection.BaozunhasformulatedProcurementPolicy3.0,requiringsupplierstoprovidecarbonemissiondataonaregularbasisandsubmitthemtoBaozunforreview.Inaddition,werequiresupplierstosetcarbonemissionreductiontargets,andplantocoveratleast80%suppliers,whichshallbetakenasapositivemeasuretoencouragesupplierstojointlyrespondtocarbonneutralitygoals.AllourlogisticsandtransportationsuppliersarerequiredtoformulatecarbontargetsandactionplansinlinewiththerequirementsofBaozun'scarbonemissionreductionprogressby2023.CarbonNeutralityWhitePaper16ReviewandratingBaozunhasformulateddifferentprocurementpoliciesbyproductcategory.Weencouragesupplierstoimprovetheirsustainabilitymanagementandhavefurthermoreincludedtheirmanagementinourevaluationandratingsystemofsuppliers.Themanagementofpackagingmaterialsuppliersisamajorissuethatwefocuson.WeencouragepackagingsupplierstobecomeFSCorCFCCcertified.Inaddition,wehavedevelopedasupplierselectionstrategymatrix,andwilldividesuppliersintoClassA,BandCbasedontheauditandevaluationresults.SuppliersevaluatedasClassCwillbeeliminateddependingonthecircumstances.IncentivesandimprovementsBaozunmotivatessupplierstomakeimprovementusingincentives.WeprovidemoreprocurementresourcesforClassAsuppliersandhelpsuppliersperformingbetterinenvironmentalsustainabilitytogetmoremarketopportunities.WerecommendClassAsupplierstobrandpartners,andencouragebrandpartnerstoselectsupplierswithbetterenvironmentalperformancesoastopromotetheestablishmentofagreene-commerceecology.Meanwhile,byadoptingsuchmeasures,wecanincentivizeClassBsupplierstohavebetterenvironmentalperformanceanddrivemoresupplierstotakeenergyconservationandemissionreductionactionsthroughpositivefeedbackandincentives.•ClassAsuppliers(Ideal):Supplierswhocanguaranteethestablesupplyofrawmaterialsandhaveability,initiativeandenvironmentalawareness.•ClassBsuppliers(Potential):Supplierswhohavetheabilitybutnoinitiativeorwithhavetheinitiativebutinadequateability,regardedassuppliersinreserve.•ClassCsuppliers(Eliminated):Supplierswhohaveneitherabilitynorinitiative.Theseareeliminatedasappropriateandreplacedwithourownpurchasers.In2021,BaozunselecteditswarehousingandtransportationplatformsuppliersbasedonTCOprocurementconceptandrecommendedthesesupplierstobrandpartners.Uponprocurementofthetransportationplatformbybrandpartners,theefficiencyofstorageandtransportationimproved.Meanwhile,theenergyconsumptioninstorageoperationswerereducedby25%.RecommendWarehousingandTransportationSupplierstoBrandPartnersIntelligentconveyorplatform◍SupplierSelectionStrategyMatrix◍CoreSupplierCapabilityEvaluationCardAbilityInitiativeClassBsuppliers(Potential)ClassCsuppliers(Eliminated)ClassBsuppliers(Potential)ClassAsuppliers(Ideal)BaozunInc.17Innovationisrootedinourblood,andthis"scienceandtechnologygene"pushesustoconstantlyupgradetechnologically.Basedonthecorecompetitivenessof"digital-intelligentinnovation",weactivelyworkwithemployees,brandpartners,consumersandotherstakeholderstoadvocateforsustainablework,productionandlifestyles,andmakeeffortstoachieveglobalsustainabledevelopmentandcreateabrighterfuture.Co-creation:CooperationforaSustainableFutureMainstrategy:Worktogetherwithallstakeholderstoadvocateasustainableproductionandlifestyle◍CooperationforasustainablefutureDevelopgreenofficePromotelow-carboncooperationAdvocatesustainableconsumptionCooperationwithemployeesCooperationwithbrandpartnersCooperationwithconsumersenergysavingpaperlessofficegreencommutingCooperationwithemployeesBaozunactivelyadvocatesagreenofficeconceptbypaperlessoffice,holdingconferencesonline,conservingenergyandwater,andintegratingthe"green"conceptintodailyworkandlifeofemployees.Practicegreenoffice•AdoptLEDandsensorlightsfornewbuildingstoreduceelectricityconsumption.•Avoidturningonlightswhensurroundinglightissufficient,andtoturnofflightsafterwork.•Switchtolowpowermodeorpoweroffandunplugelectronicdeviceswhennotinuse.•Uniformlysetthethermostatto26°Cinsummerand20°Cinwinter,andturnthemoffafterworkorwhentheyarenotneeded.•Advocatecloudofficeandcloudmeetings.•Advocateapaperlessofficeanddouble-sidedprinting.•Provideshort-distanceshuttlebusesforemployeestoreducetaxitaking.•InstallEVchargerstoencouragetheusageofnewenergyvehicles.ProposalforResourceConservationProposalforResourceConservationPleasereadcarefullyEnergyConservationandEmissionReductionandGreenOffice1.Power-saving:Donotturnonthelightwhensurroundinglightissufficient,andremembertoturnoffthelightafterwork;switchtolowpowermodeorpoweroffandunplugelectronicdeviceswhennotinuse.2.Paper-saving:Advocatewhatyouuseiswhatyouneed.HanddryersinsteadofpapertowelswillbeusedintoiletsofA1officeareafromFebruary1.3.Greenoffice:Advocateapaperlessoffice,makefulluseofallkindsofofficesoftware,andreleaseallkindsofnoticesandtrainingsummariesthroughenterpriseWeChat;fornon-importantcontent,itisrecommendedtoprintonbothsidesofthepaperorontheblanksideoftheusedpaper.4.Constanttemperaturesadjustedbyairconditioners:Uniformlysetthetemperatureoftheairconditionersto26°Cinsummerand20°Cinwinter.Closethedoorsandwindowsaftertheairconditioneristurnedontoreduceenergyloss.Turnoffthepowersupplyintimeafterworkorwhentheairconditionerisnotneeded.5.Garbagecollection:AllsmallgarbagebinsinofficeareaswillbetakenawayfromFebruary1,andgarbagestoragepointswillbearrangedatthepantryroomandfirepassage,pleaseplacethemaccordingtothesigns.CarbonNeutralityWhitePaper18CooperationwithbrandpartnersForbrandpartners,Baozunisnotonlyabusinesspartnerwhoofferslow-carbonproductsandservices,butalsoapartnerthatjointlyexploreslow-carbonoperationsandgreenconsumption.Weactivelyworktogetherwithbrandpartnerstopromotereduceduseofgreenpackageandreducecarbonfootprintinupstreamanddownstreamindustrialchains.CooperationwithconsumersAsaconnectivebridgebetweenthebrandsandconsumers,Baozuniswellawarethatconsumersareimportantpractitionersofasustainablelifestyleandanimportantforcethatdrivessustainabledevelopment.Wearedevotedtocreatingagreene-commerceecology,activelyworkingwithbrandpartnerstoofferconsumersdiversifiedandgreen,sustainablechoices.Baozunwilltakemoreactionstoadvocateasustainablelifestyleamongconsumers,soastogetmoremomentumforthesustainablefuture.TheBaozunBasketballCourt,locatedinWujiangYongdingLogisticsPark,wasofficiallyputintouseinNovember2021.Whatmakesthiscourtuniqueisthatitismadeentirelyfromoldshoes,byusingcutting-edgeGrindtechnologytorecyclerubber.ThecourtwastheresultofthecollaborationofBaozunanditsbrandpartnersinthe“TurningWasteintoTreasure&RecyclingWornShoes”project,andwasasignofBaozun’scommitmenttoworkingtogetherwithrelatedpartnersforsustainabledevelopmentgoals.In2021,Baozunpartneredwithawell-knownbrandtopromotetheuseofeco-friendly,biodegradablepackagingbagstoreplaceitscurrentplasticpackagingbags.Throughout2021,thebrand'swarehouseconsumed202.5tonsofeco-friendly,biodegradablepackagingbags.Since2020,BaozunhasbeenworkingtogetherwithBRITAtolaunchafilterelementrecyclingprogramaimedatconsumersandBaozunemployees,advocatingasustainablelifestyle.Ourrecycledfiltersaresenttoqualifiedprofessionalinstitutionsfordisassembly,cleaningandrecycling.Theywillbereproducedasfolders.AsofMarch25,2022,Baozunhadrecycled8,700wastefiltersthroughTmallchannelsandtheCompany’sinternalchannels.ExplorationonrecyclingofwornshoesExploregreenpackagingRecyclingfilterelementtoadvocateasustainablelife.BaozunbasketballcourtmadeofwornshoesFilterrecyclingposterBaozunInc.19In2021,Baozuncarriedoutgreenhousegasemissionsinspectionsattheoperationallevel,andconductedatrendanalysisofthecarbonemissiondatawithinitsownScopeIandScopeII.ThegreenhousegasemissionsattheoperationalleveloftheCompanyin2021areshowninTable1,andthetrendanalysisofgreenhousegasemissionsattheoperationallevelfrom2019to2021isshowninFigure1.GreenhousegasemissionsinScopeIIIincludetheindirectgreenhousegasemissionsgeneratedbyactivitiessuchasprocurementofpackagingmaterials,downstreamtransportationandwarehousing,employeecommuting,andbusinesstravel.Basedonitsbusinesscharacteristics,theCompanyhasevaluatedandidentifiedtheemissioncategoriesinscopeIIIbasedonitsmateriality.Throughthecollection,statisticsandanalysisofvarioustypesofdata,theCompanyhasidentifiedthekeyoperationprocessofgreenhousegasemissionsinScopeIII,withtheemissionconditionsasshowninTable1.GreenhouseGasEmissionDataIndicatorsandGoals◍Table1-2021EmissionDataofBaozunInc.IndicatorsUnit2021GreenhousegasemissionsinScopeI1tCO2e454.79GreenhousegasemissionsinScopeII2tCO2e16,867.71TotalgreenhousegasemissionsattheoperationalleveltCO2e17,322.50Greenhousegasemissiondensityattheoperationallevel3tCO2e/RMBmillion1.84GreenhousegasemissionsinScopeIII4PackagingmaterialspurchasedtCO2e13,415.28LeaseddatacentertCO2e14,630.55Downstreamtransportationandstorage(Notself-owned)tCO2e116,726.45EmployeecommutingandtraveltCO2e759.401.GreenhousegasemissionsinScopeIincludenaturalgas,gasolineanddieselforvehiclesownedbytheCompany.Whencalculatingnaturalgas,gasolineanddieselcarbonemissions,werefertotheAccountingMethodsandReportingGuidelinesforCorporateGreenhouseGasEmissions-PowerGenerationFacilities(revisedversion2022)issuedbytheMinistryofEcologyandEnvironmentofthePeople'sRepublicofChina.2.ThesourceofgreenhousegasemissionsinScopeIIispurchasedelectricity.FortheaccountingmethodsforgreenhousegasemissionsrefertotheAccountingMethodsandReportingGuidelinesforCorporateGreenhouseGasEmissions-PowerGenerationFacilities(revisedversion2022)issuedbytheMinistryofEcologyandEnvironmentofthePeople'sRepublicofChina.3.Greenhousegasemissiondensityatoperationallevel=totalgreenhousegasemissionatoperationallevel(ScopeI+ScopeII)/totalnetrevenues.4.AccordingtotheGreenhouseGasProtocol:ACorporateAccountingandReportingStandardofCorporateValueChain(ScopeIII)developedbyWRI(WorldResourcesInstitute)andWBCSD(WorldBusinessCouncilforSustainableDevelopment),theCompanycarriesoutstatisticsandcalculationsongreenhousegasemissionsinScopeIIIofimportantcategories.CarbonNeutralityWhitePaper20AsBaozun'sbusinesscontinuestoexpand,in2021,thegreenhousegasemissionsinlogisticsandwarehousingself-operatedbyBaozunincreasedby102%comparedwith2020;Greenhousegasemissionsindownstreamlogisticsandstorageoperationdecreasedby47%;Duetoourreduceduseofpackaging,thecarbonemissionsgeneratedbyprocurementofupstreampackagingsuppliersdecreasedby55%in2021.◍Figure1-GreenhouseGasEmissionTrend2019-2021ofBaozunInc.(Unit:tCO2e,tCO2e/RMBmillion)◍Table2-ChangesinGreenhouseGasEmissionsofBaozunInc.atAllLinks◍Figure2-TrendofGreenhouseGasEmissions2020-2021ofBaozunInc.atAllLinks(Unit:tCO2e)KeyoperationsProcurementofpackagingmaterialsEmployeecommutingandtravelOfficeoperationLogisticsandwarehousing(self-owned)Logisticsandwarehousing(notself-owned)Greenhousegasemissionsin2021(tCO2e)13,415.28759.404,908.1912,414.31116,726.45Dataof2021comparedwith2020Decreaseby55%Increaseby13%Increaseby52%Increaseby102%Decreaseby47%20191.021.061.84202020217,398.589,342.3116,867.71454.7931.1031.91ScopeIScopeIIGreenhousegasemissionsdensity20212020Procurementofpackagingmaterials13,415.2830,077.45759.40671.02EmployeecommutingandtravelLogisticsandwarehousing(self-owned)Logisticsandwarehousing(notself-owned)Officeoperation4,908.193,227.45116,726.45218,233.8112,414.316,146.77250,000200,000150,000100,00050,0000BaozunInc.21AccordingtothecoremethodologystipulatedintheScienceBasedTargetsandincombinationwiththeactualoperationsituationoftheCompany,BaozunconductscomprehensivecartonfootprintinspectionsforgreenhousegasemissionsinScopeI,IIandIIIinanattempttoknowthecurrentcarbonemissionsituationoftheCompanyandtakeitasthebenchmarkforformulatingreasonablecarbontargets.ThecarbonneutralitygoalsofBaozunareformulatedbyreferringtothenationalcarbonneutralitygoalsandpoliciesincludingtheWorkingGuidanceforCarbonDioxidePeakingandCarbonNeutralityinFullandFaithfulImplementationoftheNewDevelopmentPhilosophyandtheActionPlanforCarbonDioxidePeakingBefore2030andbasedoncarbonneutralitygoalsofpeersandcustomers.AccordingtotheScienceBasedTargetsinitiative(SBTi),thecarbonreductionscenariosareaccountedat1.5℃,andtherationalityofthegoalsisverified.AccordingtotheScienceBasedTargetspreparedbyScienceBasedTargetsinitiative(SBTi),BaozunInc.hasformulateditsgoalstobeachievedby2030and2050byreferringtopeers,brandpartnersandrelevantdomesticandinternationalpoliciesoncarbonneutrality.Inaddition,BaozunusesthetoolsofScienceBasedTargetsinitiative(SBTi)forcalculationtoverifythereasonabilityofthetarget.ScientificSettingofCarbonEmissionTargetsDatainspectionPolicyandpeerbenchmarkingGoalstatementandverificationCarbonNeutralityGoalsandPrinciplesofBaozunInc.2030GreenhousegasemissionsinScopeI,IIreducedby50%againstbaseyearFY2021•Targetprinciple:Wewilltakeemissionsreductionanduseofgreenelectricityasthemainapproaches.Wewillcontinuouslyreducethecarbonemissionsofself-operatedoperationprocess,reduceenergyconsumptioninlogistics,warehousingandofficeoperations,andincreasetheproportionofrenewableenergy.GreenhousegasemissionsinScopeIIIreducedby50%againstbaseyearFY2021•Targetprinciple:Wewillgraduallyextendthecarbonneutralitygoalinthewholevaluechain.WewillconstantlyimprovethestatisticalscopeofcarbonemissiondatainScopeIII,andrequireupstreamsuppliersanddownstreamtransportation&logisticsserviceproviderstofulfillcarbonemissionreductiontargetsinasynchronizedmannerwithBaozun.2050Achievecarbonneutralityacrossthewholevaluechain(includingScopeI,ScopeIIandScopeIII)•Targetprinciple:Wefollowthebasicprincipleofmeetingthe1.5℃targetintheParisAgreement.Intheprocessofpromotion,wewillevaluatewithduecareandusethewayofcarbonoffsettofinallyachievethecomprehensivecarbonneutrality.CarbonNeutralityWhitePaper22CarbonNeutralityRoadmapOurimportantmilestonesStrategyDeliverlow-carbonproductsandservicesBuildagreene-commerceecologyCooperationforasustainablefuture•Reducegreenhousegasemissions(ScopeIandScopeII)by17%againstbaseyearFY2021•Drive50%coresupplierstocarryoutcarbonreductionprojects•Advocateasustainableworkandlifestyle•Reducegreenhousegasemissions(ScopeIandScopeII)by50%againstbaseyearFY2021•Drive100%coresupplierstocarryoutcarbonreductionprojects•Reducegreenhousegasemissions(ScopeIII)by50%againstbaseyearFY2021•Reducegreenhousegasemissions(ScopeIandScopeII)by80%againstbaseyearFY2021•Raisetheuseratioofrenewableenergyinoperationalactivitiesto80%•Reducegreenhousegasemissions(ScopeIII)by80%againstbaseyearFY20212021202520302040By2050,wewillRealizecarbonneutralityacrosstheentirevaluechain2050BaozunInc.23OutlookAsoneofthecontributorstothemonumentalgoalofcarbonneutrality,BaozunInc.officiallyreleasedaCarbonNeutralityWhitePaperin2022,andwillshareandwitnessoureffortsandfutureactiontrendswiththestakeholderssuchasthegovernment,peers,brandpartners,non-profitorganizations,andthepublicthroughscientificmethodsandsolemncommitments.Wetakethe"digital-intelligentinnovation"asanimportantdrivingforcetorealizeourcarbonneutralitygoalinafasterway.WithBaozun's"scienceandtechnologygene",wetakeuseofscientificandtechnologicalinnovationtodeliverlow-carbonproductsandservices,buildaconnectivebridgebetweenbrandpartnersandconsumers,andofferfirmandpowerfulsupportforthebuildingoftheentiregreene-commerceecology.Climatechangeposesacommonthreattomankind,whilecarbonneutralityservesasthemostpowerfultooltocopewiththischallenge.Wearefullyawarethatthejointeffortsofallstakeholdersarerequiredtoachieveourcarbonneutralitygoal.Forthispurpose,throughactivecooperationwithemployees,brandpartnersandconsumers,wejointlyadvocateasustainableproductionandlifestyle,andintegratelowcarbonintoworkandlife.Wewillkeepanopenandcooperativeattitudeincarryingoutmorediversifiedcooperationwithvariousstakeholdersforalow-carbonandsustainablefuture.CarbonNeutralityWhitePaper24AboutThisReportReferencesforpreparingthereport:•RecommendationoftheTaskForceonClimate-relatedFinancialDisclosures(TCFD)•TheEnhancementandStandardizationofClimate-RelatedDisclosuresforInvestorsbySecuritiesandExchangeCommission(SEC)•ReportedaccordingtoTCFDRecommendations:GuidelinesforClimateInformationDisclosurebytheStockExchangeofHongKongThisreportisacarbonneutralitywhitepaperissuedbyBaozunInc.,whichdisclosesrelevantinformationonclimateissuesgovernance,strategy,riskandmanagement,targetsandperformance.OrganizationalscopeofthereportOrganizationalscope:BaozunInc.,itsconsolidatedsubsidiaries,itsvariableinterestentityanditssubsidiaries,whichareconsistentwiththeentitiescoveredintheconsolidatedfinancialstatementsincludedinBaozun’sannualreportfortheyearendedDecember31,2021Theincreaseinenergyconsumption(includingpurchasedelectricity,naturalgas,dieselandgasoline),comprehensiveenergyconsumption,waterconsumptionandgreenhousegasemissionsin2021ismainlyduetotheexpansionofBaozun'soperations.ThefivesubsidiariesacquiredbyBaozunin2021areasfollows:FullJetLimited;BaoBestIOTTechnology(Suzhou)Co.,Ltd..;SuzhouBaoleantoneInternationalLogisticsCo.,Ltd.;ShanghaiYiShangNetworkInformationCo.,Ltd.;andShanghaiMorefunInformationTechnologyCo.,Ltd.ReliabilityassuranceTheinformationanddatadisclosedinthisreportderivefromBaozunofficialdocuments,includingthestatisticalreports,annualreports,sustainabilityreports,etc.FeedbackForanycomments,suggestionsorquestionsaboutthisReport,pleasecontactuswiththecontactinformationasfollows:Address:ShibeiShuzhiBuilding,Lane510,WestJiangchangRoad,Jing'anDistrict,Shanghai,200436Tel.:86(21)80266000Ext.:6128;6599E-mail:fang.fang@baozun.com;wendy.sun@baozun.com
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