Vipshop Retains an A from MSCI ESG Ratings for Its Efforts in Sustainability
GUANGZHOU, China, Dec. 23, 2022 /PRNewswire/ -- Vipshop Holdings Limited (NYSE: VIPS), one of China’s leading online discount retailers, recently announced that its ESG-related performance has been recognized by major rating agencies in the capital market. The company retained an “A” from MSCI ESG Ratings in 2022, above the average for the e-commerce sector. The discount retailer also obtained a score of 46 in the Dow Jones Sustainability Index (DJSI), as a top player in the global retail sector, with outstanding performance in the rating components for Product Packaging and Supply Chain Management.
This year, Vipshop strengthened its ESG-related efforts on all fronts. In terms of the environment, the company has established a special leadership team to ensure the effective implementation of its energy conservation and carbon reduction plans by developing a comprehensive environmental management system and a top-down operation mechanism. The company expanded its big data resources, and streamlined the platform support systems, logistics and warehousing, to help brand partners and suppliers improve their operational efficiencies and curb energy consumption, alongside an integration of their decreased energy use with their carbon reduction efforts across the value chain.
In the third quarter of 2022, for the first time, the company conducted a systematic assessment of the feasibility of a sustainable and green carbon reduction roadmap, taking a holistic look at decarbonization opportunities along the value chain. It implemented the use of new lightweight and environmentally-friendly color bags, cutting plastic consumption by 123 tons, while continuing to increase the utilization of clean energy, with the total power generation capacity of photovoltaic power plants rising by 11.4% year-on-year.
Seeking to create a better working environment, the company provides equal work opportunities for all employees and stimulates their potential through a comprehensive career enhancement system, with the aim of achieving mutual benefits for Vipshop and its employees. In 2021, the company’s investment in employee training increased by 68.57% year-on-year, with total training hours exceeding 130,000. As for social responsibility and public service, Vipshop has deepened its efforts in the empowerment of women, rural revitalization, pandemic prevention and control, community integration, and volunteer services through a series of flagship public service projects including the V-Love Mothers, V-Love Charity Program, V-Love Workshop and VIP Love Aid for Agriculture programs, with total investment having reached RMB470 million as of the end of the third quarter of this year.
Taking a look at corporate governance, according to the ESG report released by the company in July 2022, Vipshop had created a three-tier social responsibility management structure consisting of an ESG working group, a focal point and an executor to clearly identify and assign social responsibility management tasks at all levels. As an important part of its CSR management practices, the company attaches importance to the expectations and demands of stakeholders and integrates them into its daily operations.
In line with meeting China’s goals to achieve carbon peak by 2030 and carbon neutrality by 2060, ESG has been taken on substantial importance in the Chinese market and has become a new benchmark for appraising the quality and sustainable development capabilities of Chinese companies.
According to A Leapfrog Moment for China in ESG Reporting white paper produced collaboratively by the World Economic Forum and PwC China, China’s listed companies are increasingly familiar with both the challenges and benefits of ESG reporting. ESG reporting in China is at an inflection point, with a surge of activities from regulators, exchanges, investors and corporate leaders.
The boom in ESG management in China has boosted the overall ESG performance of Chinese companies. MSCI-ESG Ratings data shows that, in recent years, more Chinese companies have emerged among the top performers with A-AAA ratings. In the foreseeable future, Chinese companies and the Chinese market may have a more profound impact on global ESG development.
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