In April 2023, JD Logistics launched the world’s first Supply Chain Emission Management Platform (SCEMP) for the Logistics industry. The platform is as a result of a collaboration between JD Logistics and the Green Supply Chain Committee of the All-China Environment Federation.
JD Logistics: Efficiency and Sustainability Through Technology
JD Logistics is China’s leading logistics services and supply chain solutions provider. Its parent the retail giant JD.com (known as JINGDONG in Europe). JD Logistics is on a mission to advance global supply chain efficiency and sustainability.
JD Logistics supports customers across a range of industries, including apparel, home appliances, fast-moving consumer goods (FMCG) and fresh produce.
The Emission Management Platform[AT4] : Unique in Supply Chain Carbon Management
SCEMP is a supply chain carbon management for global logistics. The platform uses inputs from more than 140 types of carbon emission factors for road transport in China. SCEMP helps companies run efficient, cost-effective carbon reduction strategies.
JD Logistics has also developed a strategic partnership with Bureau Veritas[5] (BV). BV is a respected global provider of laboratory inspection, testing, and certification solutions. This partnership will research areas including:
● Intelligent logistics.
● Digitalization.
● Supply chain services.
The strategic partnership aims to empower companies in accelerating their carbon emission reduction efforts.
Monitoring Mobile Emission Sources
SCEMP allows for transparent monitoring, reporting, and certification (MRV) of mobile emission sources. The platform also enables the creation of a calculation model for supply chain logistics transportation.
SCEMP’s Work Includes:
● ISO 14064 / ISO 14067 environmental standards.
● Publicly available specification (PAS) standards.
● Carbon disclosure regulations, such as those set by China’s Ministry of Ecology and Environment.
The platform’s robust database ensures accurate and valid primary data collection. As a result, SCEMP addresses the challenge of monitoring mobile emission sources.
Detailed Carbon Emissions Insights
SCEMP allows companies to receive detailed data on their logistics transportation-related carbon emissions. The platform generates graphs that reveal the link between orders and emissions. It can also produce insights into a company’s carbon emissions within particular time frames.
Companies using SCEMP can review the distribution of mobile emission sources categorized by fuel type. These insights may provide a foundation for focused carbon reduction initiatives in the future.
SCEMP can also give information on particular carbon emissions according to time and location.
JD Logistics’ new platform allows customers to prepare carbon emission reports.
JD Logistics and BV: Pioneering Low-Carbon Logistics Transformation
JD Logistics and BV seek to lead a nationwide transformation, turning companies into influential, low-carbon logistics leaders. Their partnership focuses on developing carbon-neutral products and services that are advanced, user-friendly, and diverse.
Meanwhile, they continue to promote industry-leading digital solutions for comprehensive carbon emission management.
In addition, JD Logistics and BV will offer companies environmental, social, and governance (ESG) support. The partners hope this support will help companies and industries improve their ESG ratings.
JD.com’s Other Carbon Reduction Activities
JD.com has launched a host of other carbon reduction efforts across its supply chain. These include the following.
Original Packaging
JD.com reduces “secondary packaging,” including materials like Bubble Wrap, multi-layered cardboard, paper, and buffing pads, by promoting “Delivered with Original Package” (DWOP).
JD.com works with brands and manufacturers to redesign their packaging to make it suitable for long-distance transportation.
This effort has reduced disposable packaging by over 10 billion pieces – equivalent to saving around 20 million trees.
JD.com launched a DWOP certification in June 2022 that allows brands and manufacturers to partner with JD.com to commit to over 80% of their e-commerce packages being DWOP compliant by 2030.
Reusable Packaging
JD.com also reduces the use of disposable materials by encouraging the use of reusable delivery boxes. These boxes include the “Green Stream Box,” transfer bags, plastic woven packaging bags, and reusable cooler boxes.
In the period since 2017, JD.com used reusable packaging over 200 million times, including more than 5 million uses of the “Green Stream Boxes.” In 2021 alone, JD.com used its reusable cooler boxes over 60 million times.
These reusable materials have seen an impressive reduction in the use of disposable foam boxes (60 million), dry ice (30,000 tons), and disposable ice bags (60,000 tons).
JD Logistics is also setting up the JD Logistics Materials Laboratory. This lab will promote the development of renewable materials, the use of eco-friendly materials, and technical innovation in the logistics industry.
Reduced Packaging Materials
JD Logistics reduces carbon emissions throughout the entire logistics process. For example, its cutting-edge technology optimizes the material of the cartons used as packaging materials. As a result, JD Logistics has achieved an annual reduction of more than 200,000 tons of pulp consumption.
Further optimization efforts have involved tens of thousands of transportation tests to create a slimmer version of JD Logistics’ sealing tape, “Slim Tape.” Through these tests, JD Logistics has achieved a 15% reduction in the tape’s width and thickness.
JD Logistics has also prohibited the winding of tape with several layers and reduced the use of tape by over 500 million meters per year.
The company is also using new packaging materials and reduced the thickness of packaging materials like wrapping films, inflatable bags, air cushioning packages, and air column bags.
Participation in the Development of the Packaging “Slimming” Industry Standard
As a key player in the logistics industry’s green transformation, JD Logistics is working with other industry leaders in the drafting and modification of postal industry packaging standards. JD.com’s “Slim Tape” has been included in the “Requirements for Restraining Over-Packaging in the Express Delivery Industry” and the “Basic Requirements for Mail Express Packaging.”
Meanwhile, JD Logistics’ innovative original packaging practices have been included in the “Opinions on Accelerating the Green Transformation of Express Packaging in the National Green Packaging Development Plan.”
Green Warehouse Efforts
JD Logistics is taking a leading role in the global mission to replace traditional energy with renewable energy from sources like wind and solar power.
In 2017, JD Logistics began work on a roof-distributed photovoltaic power generation system. This system is used at JD.com’s Asia No.1 smart mega warehouse in Jiading, Shanghai. The average photovoltaic power generated per year reduces carbon dioxide emissions by around 4,400 tons per annum.
The power generation system has also seen sulfur dioxide and nitrogen oxide emissions reduce by around 32.29 tons and 48.49 tons since 2018.
By the end of 2021, photovoltaics had been installed will be installed in 12 of JD.com’s Asia No. 1 smart mega warehouses. The total energy saving is enough to supply 50,000 standard households for a year.
JD Logistics is now working to increase the total photovoltaic power generation capacity from 100 MW to 1,000 MW. This would make it possible to provide green energy for 85% of JD Logistics’ smart logistics parks.
In addition, JD Logistics has:
● Started developing a distributed lithium battery energy warehousing system in the Xi’an Asia No.1 smart mega warehouse. This system will smooth and adjust power usage throughout peak hours and achieve peak load levelling of photovoltaic power.
● Started operating some of its warehouses without lighting. JD Logistics uses automation technology to run 119 “dark warehouses” with significantly reduced energy consumption. Every minute, these warehouses save an average of 2,283 KWH of electricity.
● Seen success with the Asia No.1 smart mega warehouse in Xi’an. The China Beijing Green Exchange and Centre Testing International Group (CTI) certified the warehouse as carbon-neutral in 2022. The warehouse is the first carbon-neutral logistics park in China.
● Begun working towards achieving carbon-neutral certification for its Asia No. 1 smart warehouse in Suqian. JD Logistics expects the warehouse to be certified in 2023 after compiling valid data for one year of power generation.
Green Transportation Efforts
In 2021, JD Logistics replaced 4,960 fossil fuel delivery vehicles with electric vehicles. This project reduced carbon dioxide emissions by 22,832 tons. JD Logistics has now introduced new energy vehicles in over 50 cities across China and replaced self-operated intra-city delivery vehicles in Beijing with new energy vehicles.
Now, JD Logistics is examining the technological applications of new energy vehicles with hydrogen energy vehicles and battery swapping. In 2022, JD Logistics began using battery-swapping vehicles, becoming China’s first logistics enterprise to adopt battery-swapping electric vehicles at a large scale. By the end of 2022, JD Logistics was using 1,000 battery-swapping electric vehicles.
JD Logistics will continue to develop its autonomous delivery vehicles. The aim is to improve service experience and efficiency and to reach a goal of 100% new energy for delivery vehicles by 2030.
JD Logistics is also reshaping the traditional pattern of freight transportation by converting parts of road transportation to railway transportation. This development will enable greener transportation, further reducing energy consumption and carbon emissions.
Green Impact Initiative
In 2022, JD.com also launched the “Green Impact Initiative,” selecting one million products to be green-labeled. Through this initiative, Chinese consumers can now identify and buy green products.
Partners include the China Association of Small and Medium Enterprise, P&G, Abbott, JOMOO, Panasonic, L’Oréal, Nestlé, PurCotton, and CHERY.
Customers who purchase eco-friendly products receive credits as part of JD.com’s green credit system. They can redeem these credits when buying green products, coupons, and peripheral products like digital collectibles. Customers can monitor their credits through their green account system, which they can access via the JD app.
About Richard Liu, Jingdong’s Founder
Richard Liu founded JD.com (known as Jingdong in Europe) in 2004. He has led the company’s growth for almost two decades as its Chairman and until 2022, CEO. Today JD.com has more than 550 million active customers and is China’s largest on line retailer and biggest overall retailer. In recent years, JD has used its supply chain expertise to expand its activities to form businesses focussed on Logistics, Property, Finance, Industrial, Health and Technology. Each business has a mission to use technology for a productive and sustainable world with the customer experience always being the first priority.