Alibaba Group - alijijinhui.org · Alibaba Group/CSR 2016-2017 01 Alibaba in Numbers of —— FY 2017 Rapidly Developing Economy RMB3.76 trillion:The annual gross merchandise volume

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Table of Contents

Message from CEO 02

Alibaba in Numbers of FY2017 01

Economic Globalization 06•eWTP 07

Science and

Technology Innovation 10A

Green Development 16•Green Logistics 16

•Green Computing 17

•Green Finance 18

•Green Consumption

and Green Manufacturing 19

•Green Park 19

Shared Development 20•Customer First 20

•Employee Second 26

•Shareholder Third 28

•Partnership and Win-Win Results 28

•Public Welfare 29

Appendix 34•GRI 4.0 / CASS-CSR 3.0 Index 34

•About Alibaba 35

•Key Performance Indicators 41

•Reporting Specifications 42

•Suggestions and Feedback 44

Future Prospect 33

Social Innovation 12•“Tuanyuan” System 12

•“Poverty Alleviation 100” Program 13

•Ant Forest 14

Alibaba: From Enterprise Platform to Economic Entity

04

Alibaba Group

01Alibaba Group/CSR 2016-2017

Alibaba in Numbers of —— FY 2017

Rapidly Developing Economy

RMB3.76 trillion: The annual gross merchandise volume (GMV) reached RMB3.76 trillion, up 22 percent from fiscal year of 2016

RMB158.273 billion: The revenue reached RMB158.273 billion, up 56 percent from a year earlier

507 million: Alibaba Group currently has 507 million mobile users

83 million: Number of combined annual active buyers on AliExpress and Lazada marketplaces

79%: Annual mobile GMV as a percentage of annual GMV of Chinese retail platforms of Alibaba

Extensive Public Services

4.7 billion: People participated in public welfare activities through platforms of Alibaba and Ant Financial reached 4.7 billion persons/times

2 million: Alibaba’s users (including users of Ant Financial platform) donated a total of RMB570 million, benefiting 2 million vulnerable people

310 million: A total of 310 million users of Alibaba’s platforms participated in donation activities, and the number of donations reached 4.39 billion transactions

280 million: Nearly 1.8 million merchants and 280 million buyers participated in the “Charity Goods” program, and 36 million goods at Taobao and Tmall were labelled as “Charity Goods”

96,000: Alibaba’s employees participated in the “Three Hours for Public Good” program reached 96,000 persons/times, and the total time for public good reached 141,000 hours

RMB3.76 trillion

RMB158.273 billion

507 million

83 million

4.7 billion

2 million

310 million

280 million

9,6000

79%


Message from CEOIn the fiscal year 2017, Alibaba achieved rapid development of various businesses, and the economy’s effect began to emerge. As a builder and participant of the economy, it is Alibaba’s responsibility to make economic development more inclusive and sustainable.

Alibaba is a data company. We strongly believe that data is the energy of future new economy, as well as core resource of Alibaba’s ecosystem. We will continuously explore the power of big data, promote the restructuring of industries through Internet technology and ideas, boost efficiency, and create chemical reaction. We firmly believe that using business methods to help support the society and the public is the best way for Alibaba to perform social responsibilities.

In the fiscal year 2017, a total of 4.7 billion persons/times of people participated in public welfare activities promoted by Alibaba’s platforms; and over 310 million customers and more than 1.778 million merchants participated in public welfare activities through Alibaba’s platforms.

The sustainable development of environment is a part of Alibaba’s economy. In the fiscal year 2017, the green economy of Alibaba achieved new progress. We launched the joint initiative of “Green Logistics,” committing to building green logistics system; we promoted green consumption, boosting the transformation and upgrading of industries from traditional manufacturing to green manufacturing. In 2016, Alibaba’s retail platforms helped reduce 38 million tons of CO2.

The idea of “public good, business methods” has been future implemented at Alibaba. The in-depth integration of public welfare and business, as well as innovations, have become the highlights of public welfare activities conducted by Alibaba’s employees. By using business methods and entrepreneurial ways, the public welfare projects including the “Tuanyuan” system and the “Ant Forest” project have achieved extensive social influence, bringing changes to the society. In the fiscal year 2017, the public welfare program – the “Three Hours for Public Good” advocated by Alibaba attracted 96,000 persons/times of volunteers, and the total volunteer time for public good reached 141,000 hours.

Now, Alibaba’s economy has over 500 million customers, tens of millions of merchants, and hundreds of thousands of service provides, and let them achieve development and success in an inclusive and sustainable business ecosystem is the goal of Alibaba. We are ready to make efforts with all parties concerned to create healthy and happy life for the public.

—— Daniel Zhang, CEO of Alibaba Group


In the next 20 years, Alibaba aims to become the fifth largest economy in the world, serving two billion customers, creating 100 million job opportunities, and enabling 10 million small businesses to make profits.

—— Jack Ma

The emerging and putting forward of new economy is a natural result of years of evolution of Alibaba’s business ecosystem.

As a start-up Internet “company,” Alibaba has emerged onto the global new economy stage since 1999. In the course of development, Alibaba has always insisted on the platform-based development mode rather than self-operation one. With the development of the platform, Alibaba further identified the development strategy of building an open, coordinated, and prosperous e-commerce “ecosystem” in 2007. Since then, Alibaba’s ecosystem has been constantly improved, and the species diversity has become increasingly rich.

By 2016, Alibaba has developed as a large business ecosystem consisting of over 500 million customers, 10 million enterprises and start-ups, and hundreds of thousands of service providers, and so on. In this large ecosystem, a prototype of boundless, cross-border, online, and platform-based new economy has been emerged from the following five aspects, while Alibaba, in this economy, acted as the builder and participant.

Super-division of labor and large scale coordination among market entities: There are about 10 million merchants, over 500 million buyers, and hundreds of thousands of service providers on the retail platforms of Alibaba. With such rich species diversity, the high-efficient and large scale networked coordination has been realized.

Continuously expanding of transaction scale: Taking online retail as an example, the GMV of Chinese retail platforms of Alibaba reached over RMB3 trillion in the fiscal year 2016 (April 1, 2015-March 31, 2016), performing at the same level as global retail giant Walmart of industrial age. In the fiscal year 2017, the annual GMV of Chinese retail platforms of Alibaba amounted to over RMB3.7 trillion.

Increasingly enhanced coordination effect of major business sectors: In addition to e-commerce business, the ecosystem of financial sector (Ant Financial) and logistics sector (Cainiao Logistics) was further improved respectively in 2016. Meanwhile, with the establishment of culture and entertainment sector, the development process and pattern of “meet-work-live” of Alibaba has become increasingly clear. Just as Chief Executive Officer of Alibaba Group Daniel Yong Zhang said, in the fiscal year 2017, “innovation as well as the coordination effect of various platforms including commerce, digital entertainment, logistics and cloud computing” boosted the strong growth of operating performance of Alibaba, and the effect of new economy was began to emerge.

Constantly improvement of internal regulations: The self-developed net regulations of Alibaba’s platforms effective support the large scale transactions. The multi-governance mechanism including the public review and the coordinated governance of Alibaba’s platforms and government was further improved in 2016. The eWTP proposal put forward by

1999.03

1999.09

2007

2016

2036

Start-up stage, March 1999

Set up the “company” , September 1999

Exploration and insistence on platform mode

Identified ecosystem strategy, 2007

Put forward Alibaba economy, 2016

To become the world’s fifth largest economy, 2036

Alibaba’s Natural Evolution

Prototype of Alibaba economy emerged in 2016

Alibaba: From Enterprise Platform to Economic Entity 阿里巴巴

经济体New

economy

Division of labor

Coordination

RegulationsValues

Scale

Alibaba has been included in the G20’s Leaders’ Communique Hangzhou Summit.

Creating large economic and social values: The retail ecosystem of Alibaba has created 30.83 million job opportunities in China, including 11.76 million transaction-related ones and 19.07 million indirect ones . In 2016, the taxes paid by Alibaba Group and Ant Financial reached RMB23.8 billion, equaling to pay nearly RMB100 million each working day; and based on the platforms, the tax contribution of the upstream manufacturing enterprises, wholesales enterprises and logistics enterprises was preliminarily estimated to be over RMB200 billion.

Three major missions of the new economy:To make the world more inclusive and the opportunity more equalTo make global economic development more sustainableTo make future life happy and healthy

The realization of the missions of new economy requires promotion of various forces. Either Alibaba or participants of other economies require an open, healthy, and sustainable environment to conduct coordination, producing more effective coordination effect. Alibaba is committed to helping realize the three missions of new economy by promoting economic globalization, science and technology innovation, social innovation, green development, and shared development.

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Currently, the sluggish growth of global economy and the rise of anti-globalization and anti-free trade require future promoting globalization. In 2016, Jack Ma, as the Chairman of the B20 SME Development Taskforce, put forward the “Electronic World Trade Platform” (eWTP) initiative, calling on to adapt to the trend of rapid development of digital economy, to better help MSMEs, to promote the growth of inclusive trade and digital economy, and to formulate new global trade regulations of the Internet age.

As an open and transparent public-private dialogue platform and a private sector-led and multi-stakeholder initiative, eWTP aims to summarize and refine effective policies and suggestions by carrying out pilot projects, providing capability building, and sharing best practices, and to jointly formulate new trade regulations with the public sector by means of dialogue and discussion, so as to create favorable and effective policy environment for cross-border e-commerce and digital economy. The roadmap of eWTP is to use e-Hub to form e-Road, and then to use e-Road to form eWTP. By using its experience and technologies in the aspects of e-commerce, smart logistics, inclusive finance, and big data, Alibaba Group will implement the e-Hub plan in some selected countries. The e-Hub shall have several important functions such as logistics hub center, one-stop foreign trade service center, big data center, talent training, and inclusive financial services, and so on.

eWTP

224countries and regions

14,500overseas brands

100 million overseas buyers

Since putting forward the eWTP, Jack Ma has been busy presenting the idea of eWTP to world leaders, winning wide recognition of international community. In 2016 alone, he spent over 800 hours aloft, visiting 33 countries and regions. Meanwhile, many world leaders visited Alibaba Group, jointly discussing global development strategy. In September 2016, eWTP was included in the G20’s Leaders’ Communique Hangzhou Summit.

Economic Globalization

The globalization strategy of Alibaba is “to bring the best of the world to China and to bring the best of China to the world.” Alibaba has provided new business infrastructure of e-commerce platform, smart logistics, inclusive finance, cloud computing and big data, and cross-border services of Internet age, letting small- and medium-sized enterprises and customers conduct business efficiently and conveniently at anywhere in the world, so as to realize the strategic vision of “buy anywhere, sell anywhere.”

The globalization strategy of Alibaba includes three major components: global export, global import and global business infrastructure that can be connected freely. The global export connects Chinese merchants and global buyers, and is the first step to realize cross-border trade. Global import means expanding importing business, making all of the global enterprises to sell their products and services to China through Alibaba’s platforms. Alibaba has always kept close relations with overseas brands, governments of foreign countries, and business organizations, committing to reshaping a brand-new global business ecosystem.

By March 2017, nearly 80 percent of the World's 100 Most Valuable Brands of Forbes have set up stores at Tmall. Tmall.hk has accumulatively served over 40 million customers, and introduced 14,500 overseas brands of 3,700 categories from 63 countries and regions including European countries, the United States, Japan, South Korea, and Southeast Asian countries, among which over 80 percent emerged at the Chinese market for the first time through Tmall.hk.

By April 10, 2017, the AliExpress has had over 100 million overseas buyers from 220 countries and regions, covering 18 languages.

So far, the cross-border network of Cainiao Logistics has covered 224 countries and regions.

In 2016, Alipay established cooperation relations with several European banks including BNP Paribas, meaning China’s mobile payment services has begun to promote in Europe. In addition, the world’s top 10 airports, some international airlines including Finnair, and the duty free stores at Incheon Airport of South Korea started to access and promote Alipay services successively in 2016-2017.


First eWTP pilot project implemented in Malaysia

On March 22, 2017, Malaysia Digital Economy Corporation (MDEC) announced it has reached strategic cooperation with Alibaba Group. The two parties agreed to jointly build eWTP pilot zone in Malaysia, helping the young people and small enterprises of Malaysia and the Southeast Asia. It was the first eWTP pilot zone outside of China.

The government of Malaysia has long been hoping to build the digital free trade zone (DFTZ). As a part of the DFTZ in Malaysia, the setting up of the e-Hub would bring new business opportunities. Alibaba and its affiliates such as Lazada and Cainiao Logistics, will

focus on the following five fields:

Super logistics hubTo provide centralized customs clearance, warehousing, distribution, and other services for Malaysia and the Southeast Asia;

One-stop foreign trade integrated service platformIn cooperation with government departments of Malaysia, the platform will provide one-stop customs clearance and trade services, helping SMEs conduct trade efficiently and conveniently;

Cloud computing and big data To provide world’s leading cloud computing and big data services for Malaysia, and support start-up technology companies in Malaysia;

E-talent training In cooperation with government departments, universities and training institutions of Malaysia, Alibaba will provide trainings in the aspects of e-commerce, logistics, finance, cloud computing and big data, and so on, cultivating reserve talents for digital economy;

Payment and inclusive financial servicesThe two parties will enhance cooperation in the aspects of e-payment and inclusive finance, focusing on promoting the B2B business of SMEs in Malaysia.

On May 12, 2017, Prime Minister of Malaysia Najib Razak visited the Xixi park of Alibaba Group. During the visiting period, the Hangzhou government, MDEC, and Alibaba signed a tripartite memorandum of understanding, agreeing to enhance the connection of China (Hangzhou) Cross-Border e-Commerce Comprehensive Pilot Area and the DFTZ, to strengthen the cooperation of Hangzhou government and the government departments of Malaysia in the aspects of customs clearance, inspection, and permit licensing by using Internet and big data technologies, to promote the “public + private” partnership, and to share knowledge and best practices.

Prime Minister of Malaysia Dato’ Sri Mohd Najib bin Tun Abdul Razak and Chairman of Alibaba Group Jack Ma presented the launching ceremony of DFTZ in Kuala Lumpur


Science and Technology Innovation

Apsara: Promote Alibaba to be more inclusiveOn November 16, 2016, World Internet Conference unveiled world’s 15 most influential innovation results in science and technology of the Internet community in 2016. Alibaba Cloud’s Apsara operating system, Tesla Autopilot, quantum communication technology of Chinese Academy of Sciences, IBM Watson, Huawei Kirin 960 chipset, and other sophisticated scientific theories and hardware products were included into the list.

Apsara is a super-large scale general-purpose computing operating system independently developed by Alibaba Cloud. In the future, it will connect millions of servers around the world, forming a super computer to provide computing services for the society. Apsara has possessed city-wide data-based thinking and decision-making capabilities. Hangzhou government, together with Alibaba Cloud and other 12 enterprises, has installed an Apsara-based “City Brain” in Hangzhou, committing to building the city as a self-adjusted one that could interact positively with the public. In a traffic pilot project, through the intelligent regulation of traffic lights by the “City Brain”, traffic flow on some road sections has improved up to 11 percent.

After 17 years of development, Alibaba has established strong technological strength, and committed to promoting the strength to market through Apsara and the public cloud services of Alibaba Cloud, providing brain-type services for cities, SMEs and entrepreneurs. On the day before the “Double 11” festival, students of Nanjing University, by using cloud computing products of Alibaba Cloud, won two champions in the 2016 Sort Benchmark competition. The USD1.44 of computing cost per TB broke the USD4.51 of AWS in 2014.

Quantum computing: Alibaba jointly developed world’s first photon quantum computerOn May 4, 2017, world’s first photon quantum computer that goes beyond the early classical computers was successfully built in China jointly by University of Science and Technology of China, CAS-Alibaba Quantum Computing Laboratory, Zhejiang University, and other institutes, paving the way to the ultimate realization of quantum computing beating classical computers. The test results showed the sampling rate of this prototype was at least 24,000 times faster than international counterparts, and broke the record maintained by the United States.

The computing power of quantum computing grows exponentially. Thus, it could effectively solve large-scale computation problems that are beyond the ability of current classical computers. As for the computing speed of traditional computer and quantum one, may as well compare the speed of a bicycle and an airplane. A quantum computer takes just 0.01 second to deal with equations that cost Tianhe-2, one of the most powerful supercomputers in the world, 100 years to solve.

10Alibaba Group/CSR 2016-2017 11Alibaba Group/CSR 2016-2017

Alibaba’s “11.11” Global Shopping Festival of 2016

The GMV reached RMB120.7 billion, and the number of delivery orders amounted to 657 million Processed 175,000 orders per second at peak and 120,000 transactions per second at peak Over 10,000 employees from more than 100 departments of Alibaba participated directly Served hundreds of millions customers from 235 countries and regions Over 3,000 cooperative transport/logistics companies and more than one million deliverymen participated

Those figures have showed the strong support of science and technology innovations for Alibaba. An economy that will serve two billion customers requires strong technological strength.

Currently, Alibaba has over 20,000 engineers, among whom two thirds are science and technology R&D personnel. The continuous exploration of Alibaba in cloud computing, big data, AI, and other frontier technologies has not only boosted the e-commerce business of Alibaba, but also promoted to transform Alibaba from an original e-commerce enterprise to world-class science and technology pioneer.

In the field of AI, Alibaba has lunched the first widely used AI services program “ET,” the “E-commerce Brain” that provides customized item matching services, the smart private assistant Alime that provides shopping services, and AutoNavi with AI-based engine, and so on; in the field of cloud computing, the Apsara system, a super-large scale general-purpose computing operating system independently developed by Alibaba Cloud, has served over 700,000 corporate customers around the world; and in the field of Internet of Things, Alibaba’s YunOS has become the third largest operating system in China, and has been widely used in the fields of smart phone, TV, automobile, IOT, and Internet of Things.

At the venue of “Tmall Double-11 Night Carnival 2016,” the Alibaba Cloud’s ET, under the witness of hundreds of millions of audience around the world, “guessed” all

the playing cards in the hands of five people right, shocking the audience. The excellent performance of the ET owes to the intelligent

speech interaction system developed by the iDST team of Alibaba Cloud, and the system includes speech recognition, speech synthesis, natural language understanding, and other technologies.

Alibaba also entered the field of quantum computing. Alibaba’s Chief Technology Officer Jeff Zhang is fascinated with quantum computing. He said, “As for the advanced technologies, quantum computing will produce revolutionary influence to cloud computing, and provide truly limitless computing capability for the mankind.” On July 30, 2015, Alibaba Cloud announced to establish a new laboratory with Chinese Academy of Sciences, jointly conducting prospective research in the field of quantum information and developing quantum computer.

Besides key innovations achieved in the fields of AI, cloud computing, and Internet of Things, Alibaba also made breakthrough in the aspects of VR technology, biometric recognition, operating system, and block chain. Taking “Smile to Pay” as an example, the face recognition rate has reached 99.6 percent, and the technology has been included into the list of the Top 10 Breakthrough Technologies 2017 of MIT Technology Review.

NASA: Develop core technologies for the economyOn March 9, 2017, Alibaba held its first tech summit in Hangzhou, mobilizing over 20,000 scientists and engineers to devote to the “new technology strategy.” Alibaba also launched its own “NASA” plan, aiming at developing core technologies for the new economy that will serve two billion customers in the future.

According to “NASA” plan, Alibaba will increase investment for technology research, developing cutting-edge technologies. It means that the Chinese Internet companies are no longer just tech followers; they are leaders and innovators of global Internet technologies.


At the end of 2016, Alibaba conducted the appraisal activity named “Alibaba Public Welfare Langya List,” aiming at encouraging employees to launch public welfare projects in their spare time. On behalf of tens of thousands of employees of Alibaba, the public welfare committee of the Group selected 12 projects from 31 projects submitted by employees.

Alibaba has always been committed to promoting company-wide public welfare culture and practices. The idea of “public good, business methods” has encouraged more and more employees to launch public welfare projects by means of starting a business, aiming at achieving self-fulfillment and changing the society.

In 2016, social entrepreneurship became a normal at Alibaba, and lots of public welfare-based projects began to emerge. The in-depth integration of public welfare and businesses means Alibaba has integrated social responsibility into its own business models, and moved towards from corporate social responsibility to corporate social innovation.

When Liu Zhenfei and Wei Hong, managers of the security department of Alibaba, asked programmer Han Xujie to develop a system for releasing information of missing children, Han agreed without the least hesitation. To develop such a system needs both love and solid technological capability. Han’s partner, programmer Lu Yining has the same feeling. “Picking up waste along the bank of West Lake is a good deed, but we can also use our professional capabilities to do better things.” Lu said.

Li Ruobing, director of several charitable groups of Alibaba, organized a 200-people volunteer team to help the six-people tech team led by Han. The volunteers gave lectures to front-line criminal policemen, collected their suggestions and questions, and then fed back to the tech team.

From the launching day of May 15, 2016 to May 15, 2017, the “Tuanyuan” system accumulatively released over 110 billion pieces of information, and nearly 500 million people received the pop-ups. The system released 1,317 pieces of information of missing children, and 1,276 missing children were finally found; the rate of finding the missing children reached 96.74 percent.

The “Tuanyuan” system has become a key supported public welfare project of Alibaba. The Group arranges special funds and resources for the project every year, guaranteeing the updating and upgrading of the system. In the future, more mobile apps will be connected to the system, facilitating more people to participate in the anti-trafficking campaign.

Social Innovation

the rate of finding the missing children

reached 96.74 %

total amount of claims reachedRMB6,405,550.5

Alibaba Group

TOGETHER,WE CAN MAKE REUNIONS


“Tuanyuan” System

“Poverty Alleviation 100” Program

The “Tuanyuan” system, or reunion system, is an emergency response platform for missing children, which was developed by the tech team of Alibaba’s security department in their spare time for the Ministry of Public Security. As an “Internet + anti-trafficking” platform, the system aims at helping front-line policemen better carry out anti-trafficking campaign by using DingTalk services, and gathering all social forces to participate in the anti-trafficking cause, achieving the reunion dream for missing children and their families. The platform has been applied to multiple popular apps including AutoNavi, Alipay, Mobile Taobao, Baidu Search, Tencent QQ, 360 Mobile Phone Defender, and Didi Chuxing. China’s over 6,000 front-line policemen can, through this authoritative channel, submit the information of missing children immediately, and release pop-ups to local people by using the LBS positioning technology of AutoNavi. Currently, over 6,000 anti-trafficking policemen at the four levels of ministry, province, city, and county have the right to release relevant information through this platform.

What can you use RMB100 for? Two tins of cooking oil, or a bag of rice. If you change the money into an insurance order, it can become a kind of “guarantee for the family,” and even “life-saving money.” If the money can be digitalized, this kind of guarantee can become more transparent, as well as be traceable.

In 2016, the government of Sigong county, east China's Jiangsu Province, together with Ant Financial and an insurance company, launched a pilot “precision poverty alleviation” project, offering a comprehensive commercial insurance named “Poverty Alleviation 100” to each of 132,600 low-income people of Sihong. The insurance covers illness, unintentional injury, family property, and education, and the average insurance fees are RMB100 per person. The local government and Ant Financial are responsible for the raising of the fund. The operations such as insurance enquiry and compensation can be completed through the platform of Alipay, guaranteeing complete transparency of relevant information.

In the summer of 2016, the destiny of 18-year-old girl Jiang Qian was fundamentally changed.

The “home” of Jiang was at a small boat on Mudun Island of Sihuang County, Jiangsu Province. The area of the cabin is no more than 10 square meters, and is too hot for people to live in. Jiang’s father has to sleep on the deck. The sources of income of the father and daughter are RMB600 of basic living allowance per month and about RMB 20 of income from fishing per day.

“Tuanyuan” system have been applied to 21 apps

1,731 insurance claims have been

completed


One-Click CharityThrough the app of Cainiao Guoguo, donators can use the “One-Click” function to contact deliverymen, asking them to provide cdoor-to-door pickup services. The “One-Click Charity” has got through the whole chain of clothes recycling. In 2016, the “One-Click Charity” alliance received a total of 50,000 orders of donated packages; and in 2017, the alliance’s goal is to receive 50,000 orders of donated packages per day.

Tmall Information Accessibility ProjectTmall uses information accessibility technology to help special populations realize non-barrier shopping. The blind customers can complete the order independently, and the operating time is almost the same as that of ordinary customers.

Cloud Atlas Data VisualizationThe Cloud Atlas Charity Data Visualization Design Contest explores the implementation of Internet-based public welfare activities, and aims at promoting the development of China’s green economy. The contest provides meteorological data, air quality monitoring data, emission data of enterprises, and public environment data, requiring participants to dig the relations of the complicated data, and to use visualization mode to present the relations to decision makers and the public, so as to improve the environmental protection awareness of the society.

Money Shield Anti-Fraud ServiceThe “Money Shield” app has the special function for reporting wire fraud, and connects with the anti-fraud centers of public security departments. The integration of the anti-fraud data and the real-time reporting at the public security departments’ anti-fraud centers greatly enhances the capacity in fighting against fraud. Currently, the app has over 38 million customers, and each effective reporting could help at least 10 people avoid fraud.

Internet Security FoundationThe Internet Security Charity Project provides Internet security services for public welfare institutions, is committed to the cultivation of Internet security talents, and offers opportunities to ethical computer hackers to participate in Internet public welfare activities. On March 24, 2017, Alibaba Cloud Shield and Alibaba Foundation jointly announced to set up an Internet security foundation, supporting the public welfare causes and the cultivation of Internet security personnel.Since 2016, the foundation has raised RMB1 million, among which the first batch of RMB460,000 has been planned to donate to the “Care Package” project of China Foundation for Poverty Alleviation, supporting to improve the teaching conditions of music, fine arts, and physical education, as well as the studying and living conditions of rural primary schools.

Cainiao Green LogisticsThe “Green Logistics” initiative is by far the largest joint environmental protection project of e-commerce logistics industry, and aims at building a multi-dimensional green logistics and a closed recycling loop while improving customer experience and industry efficiency, striving to solve the issue of packaging pollution. The initiative plans to promote the logistics industry to reduce 362 tons of carbon emission by 2020, and 50 percent of packaging materials of Taobao-related platforms will be replaced by 100 percent biodegradable packaging ones.Tmall Home Renovation Project

The Tmall Home Renovation Project aims at providing renovation services for poverty-stricken families who have children aged six to 16. The project strives to promote children to develop good habits and to guide the families to purse healthy life. From December 20, 2016 to December 2017, the project planned to conduct living environment renovation for 1,000 poverty-stricken families.

Internet Security Volunteer AllianceThe Internet Security Volunteer Alliance currently has a high-quality team consisting of over 5,000 volunteers across China. Since its establishment 10 years ago, the alliance reported over 1.6 billion times of illegal behaviors and violations relating to Internet security.

Organ Donation Registration ServiceThe medical care service platform of Alipay has launched the function of “Organ Donation Register” facilitating hundreds of millions of real-name Alipay customers to complete registration procedure, and the whole process needs no more than 10 seconds. As of 13:00, January 11, 2017, within only 20 days, a total of 96,662 people had registered through the Alipay platform, surpassing the number of all the registered people in previous years.

over

220 million accounts

total of 8.45 million sacsaoul trees have been

planted

the daily average carbon reduction

of Ant Forest is 5,000 tons

accumulative carbon reduction reached

670,000 tons

Other awarded projects


In this hot summer, a double blessing has descended upon Jiang Qian: she was admitted to a Changzhou-based junior college, and received RMB3,000 “student subsidies” in her Alipay account. The subsidies were not from charitable donations or poverty alleviation funds, but from insurance payments.

In January 2017, the public welfare platform of Ant Financial launched “Yi Qi Bao,” conducting cooperation with public welfare institutions to raise insurance funds for the needy people. The “Internet + precision poverty alleviation” mode that integrates public engagement and commercial operation has gradually formed at this platform. The RMB100 insurance fees per person, together with the Internet platform, the poverty alleviation organizations, and the insurance mechanism, let poverty-stricken people not only enjoy basic medical security, but also get payments from commercial insurance. By May 2017, 1,731 insurance claims have been completed, and the total amount reached RMB6,405,550.5.

Ant ForestIn recent years, people around China have suffered from serious air pollution. The traditional extensive development has posed great challenges for the country’s sustainable and inclusive growth. To promote green economy and green consumption needs both the participation of enterprises and the public.

Alipay has established individual carbon account for its customers to record and calculate carbon reduction in their consumption, travel and daily life, encouraging them to adopt low-carbon lifestyle such as walking, cycling or taking public transport. For this purpose, the initial products of individual carbon account have integrated with public welfare actions, recording the customers’ low-carbon behaviors. Once the carbon reduction reached a certain amount, the customers could plant a virtual tree, and the virtue tree would finally turn into an actual tree with the help of engaged enterprises and public welfare institutions. The aim of this kind of green action is to protect our Earth.

By the end of April 2017, the customers of Ant Forest, which was launched eight months ago, reached over 220 million accounts. The accumulatively reduced carbon reached 670,000 tons, and a total of 8.45 million sacsaoul trees have been planted. Those trees were planted by SEE Foundation, China Green Foundation, and other partners of Ant Financial in Alashan and Ordos of north China’s Inner Mongolia Autonomous Region, Minqin County of northwest China’s Gansu Province, and other areas, aiming at turning the planted trees into forests.

The customers of Ant Forest can be found all over the country. Shanghai has 8.3 million customers, ranking the first, followed by Beijing with 8.29 million customers; customers of Anhui and Zhejiang Provinces planted most virtual trees, which finally turned into actual sacsaoul trees. Currently, the average carbon reduction of Ant Forest is 5,000 tons per day, and of the customers, 83 percent are generations of 1980s and 1990s. In their eyes, what wakes them up every day is Ant Forest rather than dream.

Song of NatureAlibaba, together with other six large Internet platforms, jointly collected lyrics for the “Song of Nature,” which adopts the tune of “Live a More Than Desultory Life.” Through the power of broadcasting, Internet, and music, the campaign aimed at raising the public awareness, and promoting more people to participate in environmental protection activities. The “Song of Nature” was selected as the theme song of the 3rd China Nature Education Forum.


Green Development

Green LogisticsThe fast development of e-commerce packaging business has resulted in serious pollution and resource wasting in the aspects of packaging materials and carbon emission of transport vehicles. In consideration of the pollutions and the fast development situations of express delivery industry, Cainiao Logistics holds that it is imperative to promote green logistics initiative, helping express delivery industry get on the environmental protection track.

In June 2016, at the Global Smart Logistics Summit, Cainiao Logistics and other 32 partners around the world jointly announced the launching of “Green Logistics” initiative. The partners included leading logistics companies such as ZTO Express, STO Express, YTO Express, Best Express, Yunda Express, China Post, Russian Post, Canada Post, FedEx, Singapore Post, Suning, and RRS.

Green ComputingAlibaba boasts world’s leading big data technology, and has the capability of building high available, large scale, and replicable Internet infrastructure. High-efficient data center is the strong heart of Alibaba’s computing platform. In the future, Alibaba will constantly to promote the use of green energy for the building of social business infrastructure.

Zhangbei Data Center The data center of Alibaba’s Zhangbei Cloud Computing Base is operated by 100 percent of green energy. The exterior walls of the building are installed with solar panels, natural air cooling system, and natural water cooling system. The green energy can be transformed into computing resources locally, serving the globe. In September 2016, the No. 1 and No. 2 parks of Alibaba’s Zhangbei Data Center went into service. To choose a new energy base as the site of a large scale data center and to turn clean energy into strong computing capability is the first of its kind in China. The Zhangbei Data Center has adopted several technological innovation results, fully leveraged the advantages of low temperature and clean air of Zhangbei, and tried the best to use natural cooling sources to reduce temperature of servers; and the energy consumption for cooling could be reduced by 59 percent.

According to the plan, the “Green Logistics” initiative will promote logistics industry to reduce 3.62 million tons of carbon emission by 2020; and 50 percent of packaging materials of Tao-related platforms will be replaced by 100 percent biodegradable packaging ones.

To develop green economy and achieve win-win results of environment and economy has become advantages of Alibaba’s business model. Alibaba has always promoted the development of green economy from the aspects of consumption, manufacturing, logistics, cloud computing, and finance.

On March 17, 2017, Cainiao Logistics, Alibaba Foundation, and China Environmental Protection Foundation jointly launched China’s first logistics environmental protection foundation – Cainiao Green Alliance Foundation. The foundation planned to invest in RMB300 million to promote research, initiative and development of green logistics, green consumption, and green supply chain, and so on.

动，未来五年将累计减少碳排放 362 万吨

消费需求推动绿色制造发展，驱动低库存经济，助力供给侧改革

年减碳1万多吨，运用弹性30%—90% 能源成本

消费需求推动绿色制造发展，驱动低库存经济，助力供给侧改革

低碳账单 2015 年减排二氧化碳57.3 万吨


Green development strategy of Alibaba

Overview of Alibaba’s Zhangbei Data Center

Green

Green Logistics

Green Computing

Green Finance

Green Manufacturing

Green Consumption

Through promoting initiatives of green transport, green packaging, and electronic express sheet, the carbon emission will accumulatively reduce 3.62 million tons in the next five years.

PUE1.17; annual amount of carbon reduction reached over 10,000 tons; the using of elastic cloud computing can save 30 percent to 90 percent of energy costs.

Low-carbon bills helped reduce 573,000 tons of CO2 emission in 2015.

Consumption demands promote development of green manufacturing, boost low-inventory economy, and help support reform of supply side.

Through adopting the green consumption mode of online shopping, the carbon emission was equivalent to reducing about 30 million tons in 2015

The “Green Logistics” initiative covers green packaging, green distribution, green recycling, green smart, and so on, and is committed to building a multi-dimensional green logistics and a closed recycling loop while improving customer experience and industry efficiency. The initiative strives to achieve self-cycling of green logistics, fundamentally solve the issue of packaging pollution, reduce environmental pollution and resource consumption, prevent hundreds of millions of customers from contacting pollutants, further cut carbon emission, and promote green and sustainable development of logistics industry.


Alibaba Group

The Ant Fortune platform has so far established cooperation with more than 90 fund firms, and launched fund products focusing on environmentally-friendly listed companies with fund partners, encouraging customers to invest in green funds. At present, platform has over 80 funds focusing on environment protection-related sectors, aiming at supporting green financial investment; and in the future, the platform will introduce big data models to improve the returns of those funds.

Ant Financial has about 14 green businesses. According to those businesses, Ant Financial will firstly launch individual carbon account, and in the future, promote individual carbon account-based carbon transaction. At present, Ant Financial is promoting the certification of authoritative institutions and recognition of national policies, striving to develop a market for individual carbon transaction.

On the third “National Low-Carbon Day” in 2016, Ant Financial released a nationwide low-carbon bill, showing that the amount of paper documents eliminated and paperless bills paid by customers through Alipay are equivalent to reducing 573,000 tons of CO2 emission yearly, or planting 5.73 million full-grown trees.

On April 23, 2016, the Green Finance Committee of China Society for Finance & Banking (CSFB) held the “2016 China Green Finance Forum & CSFB Green Finance Committee Conference” in Beijing. At the conference, Ant Financial was elected as a director unit, becoming the first and by far the only Internet financial firm joining the committee.

On the evening of January 19, 2017, Ant Financial and United Nations Environment Programme (UNEP) formally launched the Green Digital Finance Alliance at the World Economic Forum in Davos, with the aim of attracting the joining of global financial partners and promoting global sustainable development. The collaboration marked the UNEP’s first joint venture with a Chinese company since it was established 45 years ago. The alliance, as the first of its kind in the world, will explore the path of promoting carbon account of Ant Forest around the globe.

In February 2017, the United Nations Development Program (UNDP) released a report on global carbon market, noting the digital finance-related innovations of Ant Forest are of unique practical significance in global carbon market. As a Chinese sample, the Ant Forest uses actions to build a global community of common destiny, showing the leadership of China.

CSFB

Green Digital Finance Alliance

Green Consumption and Green ManufacturingAlibaba has planned to improve customers’ green consumption awareness, promote green consumption lifestyle, find and guide green consumption demands, and jointly formulate green consumption certification standards, as well as use customers’ green demands to advance industrial upgrading, boost green manufacturing, and help enhance reform of supply side.

In August 2016, Ali Research Institute and Alibaba Foundation jointly released the “China Green Consumers Report 2016,” showing the Internet is becoming a new major field of green consumption. As a green consumption mode, online shopping has played an important role in promoting emission reduction. According to Chinese Academy of Social Sciences, Alibaba’s retail platforms helped reduce 38 million tons of CO2, equaling to achieve the green effect of 7.09 million mu of forest or nearly double water areas of Taihu Lake.

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Qiandao Lake Green Data Center Alibaba Cloud’s Qiandao Lake Green Data Center can save tens of millions kilowatt-hours of electricity per year. As China’s leading new generation green data center, Qiandao Lake Data Center adopts deep lake water cooling system and Alibaba’s customized hardware products; the average power usage effectiveness of the center is lower than 1.3, and the minimum value is 1.17, which can save tens of millions kilowatt-hours of electricity and over 10,000 tons of standard coal in terms of carbon emission reduction in comparison with ordinary data center. The center is one of China’s most energy-saving data center in subtropical zone.

Alibaba Cloud’s Qiandao Lake Green Data Center

Green FinanceAnt Financial has actively built green financial system, developed green financial instruments, and promoted customers and investors to engage in green finance, striving to support green manufacturing and green consumption of the society. The “Green Strategy” of Ant Financial includes two parts:

—— Use green methods to develop new finance, and promote the public to adopt low-carbon lifestyle.—— Use financial instruments to boost development of green economy, and enhance popularization of green awareness.

Green ParkAlibaba has attached increasingly importance to the “green” features of buildings in park construction, trying the best to adopt energy-saving materials and design, to save water, electricity and other resources, and to reduce energy consumption and greenhouse gas emission, so as to protect harmonious ecology of surrounding areas. In 2016, the energy saving rate of Alibaba’s parks around China reached 10 percent, and the main green operation measures were as follows:

Optimized equipment operation plan and reduced equipment operation duration Conducted technological transformation for equipment with lower energy efficiency ratio, and improved the ratio Achieved paperless office through DingTalk, cloud storage, e-mail and other services

Green Funds

NationwideLow-carbon Bill

Individual Carbon Account


Shared Development

E-commerce strategy for rural china: Bridging e-commerce gap between urban and rural areasAlibaba’s e-commerce strategy for rural China is to build an online and offline integrated new-type e-commerce platform and is committed to transforming rural economy, injecting positive development factors into the society of rural areas. By leveraging the advantages of e-commerce, building service network both at the county and village levels, and breaking the bottleneck of logistics and information flow, helping build smart rural areas and promote the urbanization process of rural areas. More importantly, the back of outstanding talents will bring knowledge, technology, urban culture, and urban lifestyle to rural areas, changing the spirit of the people there.As the end of December 2016, the Rural Taobao had covered over 27,700 administrative villages in 549 counties (cities) of 29 provinces (municipalities/autonomous regions) across China; and had established county-village e-commerce service system for 161 national poverty-stricken counties.

Alibaba Group


Customer FirstAdhering to the values of “customer first,” Alibaba achieves success by creating values for customers and promoting their success. The inclusiveness of business system is of importance to promote economic development and social progress. Perfect business infrastructure not only facilitates customers to access services and products, but also promotes fairness and integrity as well as heathy business development.

It is only through Internet technology and big data that we can establish a truly meaningful innovative infrastructure for commerce that will provide comprehensive support to small- and medium-sized enterprises.

—— Jack Ma

Alibaba has used Internet and big data technologies to improve infrastructure and services, and constantly enhanced the inclusiveness of the economy, facilitating various participants to access to products and services conveniently through more accessible business infrastructure; and used security and integrity building to maintain and promote the sustainability of business ecosystem of the economy, providing fairer development opportunities for economic engagement.

Improving Business Infrastructure E-Commerce PlatformAlibaba has established an e-commerce platform consisting of Taobao, Tmall, and Juhuasuan, and so on. On this platform, tens of millions merchants and hundreds of millions of customers can conduct transactions conveniently through by using the Internet; and the great abundant products have brought diversified choices for and met diversified demands of customers.

Logistics SystemThe logistics network of Cainiao Logistics and its partners has covered 224 countries and region around the world, and 2800 districts and counties across China. By the fourth quarter of fiscal year 2017, Alibaba has established over 14,000 Taobao service stations in rural areas of China, offering shopping and distribution services. Meanwhile, it has established a terminal shared service network – Cainiao Logistics Station Network covering over 1,700 universities and colleges and more than 40,000 communities.

The Cainiao Logistics Station Network not only offers high-quality services to customers, but also creates many job opportunities, becoming a new platform for university students to conduct innovations and start new businesses. Cainiao’ rural logistics network has so far covered 28,000 villages of over 500 counties, and 99 percent of packages could be delivered from county to village on the next day.

Big Data and Cloud ComputingThe human society has entered the era of data technology from the era of Internet technology. In this era, big data would become new energy, and cloud computing would become new engine; data would become key resources, and computing would become core competitiveness. Alibaba is building important economic facilities for China’s future business, which is based on its big data and cloud computing platform of Alibaba Cloud, making the big data and cloud computing strategy to become the strong pillar of future business ecosystem. Alibaba Cloud has so far become world’s third largest cloud computing service platform, and has established data centers in 14 regions around the world. By the end of March 2017, the number of paying customers of Alibaba Cloud’s cloud computing has reached 874,000.

Rural Taobao had covered 29 provinces

224 countries and region around the world

2800 districts and counties across China

data centers in 14 regions aroundthe world

Rural Taobao had covered 549 counties (cities)

Rural Taobao had covered 161 national poverty-stricken counties

Rural Taobaohad covered over 27,700 administrative villages


Code of Business Conduct of Alibaba Group The code specifies the rules on financial interests, related transactions, gift receiving, and reception, and so on. Every employee shall sign the code and be evaluated in

accordance with the code every year.

Integrity and Compliance Department The Integrity and Compliance Department is committed to the investigation of internal corruption cases, and the customer service workers and merchants who are involved in corruption will be punished in accordance with the employee discipline system and the member regulations respectively. The department encourages platform merchants to conduct integrity operation, and strives to provide fair and transparent business

environment for tens of millions of merchants to start and develop businesses.

ARMU The Integrity and Compliance Department, together with various business units of the Group, as well as the internal control teams, risk control teams, and quality control teams of Ant Financial and Cainiao Logistics, and so on, jointly formed the Alibaba Risk Management Union (ARMU), committing to integrating the company-wide risk management resources and building an internally connected and coordinated as well as experience and information shared platform.

Alibaba Security Department Alibaba Security Department has established comprehensive mechanisms in the aspects of account security, information protection and anti-fraud, and so on, using big data to build strong real-time risk prevention capability. The department is fully responsible for various business scenes of Alibaba, and has established close relations with government functional departments, improving security risk control capability of business partners. From online shopping, logistics information, and equipment security to cloud computing, the department provides security guarantee

for hundreds of millions of users.

ASRC We have set up the Alibaba Security Response Center under the Security Department, welcoming users to report security vulnerabilities and threat information of products and businesses of Alibaba’s various divisions, so as to help us improve the security of products and business, and make contributions to the joint building of a healthy and

secure e-commerce industrial ecosystem.

Alibaba Security Innovation Center The CAICT-Alibaba Security Innovation Center was formally established on March 6, 2017. The center aims at maintaining the Internet security and big data security, promoting the building of Internet security service system and platform, enhancing research of security assessment of new Internet technology and new Internet business as advancing innovation in Internet technology, expanding the application of innovation results, and boosting the development of information and communications security technology as well as the industry.

Alibaba Group

Building Healthy Business Ecosystem

Anti-Corruption and Anti-Commercial Bribery

Integrity and ComplianceAlibaba conducts businesses with customers, partners, shareholders and other stakeholders in accordance with the requirements of relevant laws and regulations and the “Code of Business Conduct of Alibaba Group”, committing to following the highest standard of code of business conduct. Alibaba requires its employees and external partners to adhere to the values of integrity in conducting business and can never tolerate any wrong conduct or illegal acts. Meanwhile, Alibaba delivers the integrity culture to the enterprises that engage in business with it. The partners could get the business compliance guidelines of Alibaba at any time from its integrity and compliance department, or report any suspicious events relating to wrong conduct or illegal acts of Alibaba’s employees. Security and Integrity Guarantee

Security GuaranteeAlibaba has always been committed to building an e-commerce industrial ecosystem featuring integrity, win-win results, and prosperity, while the security is the first element.

Internal Audit and Internal ControlThe internal control system of Alibaba guarantees the Company to abide by the applicable laws and regulations, so as to achieve sustainable and healthy development. The management of Alibaba is responsible for the formulation and implementation of internal regulations, and empowers the internal control department to fully strengthen the internal control system relating to financial statements and compliance, so as to help the management improve existing business processes, achieving higher operation efficiency and better results. Through the good control environment, effective risk assessment system, diversified control activities, smooth communication mechanism, and responding supervision mechanism, the employees of Alibaba can fully understand and abide by the internal control regulations, guaranteeing the overall integrity.

In 2016, the internal control system of the Group was further optimized and improved. The stricter requirements of the management on both formulating regulations and rules and enhancing supervision and inspection were fully and effectively implemented.


Alibaba

Integrity Guarantee —— Anti-Counterfeit GoodsAlibaba has established a 2000-people team to fight against counterfeit goods, and the annual spending for this purpose reaches RMB1 billion. In 2016, we deleted and removed a total of 380 million merchandise category pages, and shut off 180,000 stores. The platform governance department of Alibaba identified and handled 4,495 clues relating to making and selling of counterfeit goods totally, and the law enforcement authorities received 1,184 clues.

Integrity Guarantee —— Integrity Building

Corporate Integrity System On June 16, 2016, Alibaba formally launched corporate integrity system services. Centering on trade services, Alibaba has been committed to connecting information islands of socio-economic activities, promoting the building of corporate integrity system, and improving coordination efficiency of and reducing the service costs including order taking and financing for small- and medium-sized enterprises of the ecosystem. The integrity system consists of electronic access code, credit rating, credit report, and risk cloud chart, and will be extensively applied to various business scenes of enterprises, becoming future business access pass.

Playing Card Fatwa On March 20, 2017, Alibaba issued its first playing card-based fatwa to fight against counterfeit goods. It released nine typical cases, aiming at releasing clues to law enforcement and judicial authorities as well as the public, helping customers identify counterfeit goods, assisting law enforcement to handle cases, and preventing platform-

based illegal activities.

Joint OperationsBy the end of 2016, Alibaba has conducted joint operations against counterfeit goods with 18,000 international brands including Apple, Burberry, LV, Cartier and Nike. On January 16, 2017, the “Big Data Anti-Counterfeiting Alliance” was established; Alibaba and about 20 brands including Dulux, LV, Swarovski, Trendy, Dazzle, and Shiseido were co-founders of the alliance.

NDRC, Alibaba jointly build business integrity system On December 2, 2016, the National Development and Reform Commission (NDRC) and Alibaba Group signed a Memorandum of Understanding agreement on the building of business integrity system. The two parties agreed to conduct cooperation in the aspects of data sharing, award and punishment, as well as joint pilot projects, which is of great importance for improving business integrity awareness, accelerating the building of integrity system, and leveraging the role of credit system in optimizing business environment and promoting industrial development.

Integrity Supervisor System Alibaba has always been committed to building an open and transparent commercial platform, encouraging merchants to conduct integrity operation and fair competition on the platform while strictly prohibiting corruption. For this purpose, Alibaba has recruited “integrity supervisors” from merchants and Taobao partners who are willing to achieve common growth with Alibaba, and their information shall be kept strictly confidential.

Public ReviewIn the fiscal year 2017, Alibaba further promoted the application of public review mechanism to the platform-based customer complaint and dispute scenes. And the Public Review team actively conducted cooperation with CYLC’s Zhiyuanhui (an app), establishing online and offline integrated volunteer mechanism to integrate resources of the public reviewers and the volunteers in China, and to make them as a part of social volunteers. In the fiscal year 2017, the number of newly registered public reviewers reached 1,040,538 people; 31,865 public reviewers participated in dispute handling; 1,633,045 complaints and disputes were solved; and the number of participants for solving complaints and disputes of customers reached 10,642,672 persons/times.

Integrity Operation and Fair Competition

The expanding of the platform, the increasing of participating groups and various species, and the large scale of transactions have brought the issues including counterfeit goods and fake online reviews, which have been aroused wide attention of government and the society. Alibaba has attached great importance to the establishment of an integrity and transparent platform and to the solving of those issues, both of which require a new governance mechanism.

Alibaba has set up the Platform Governance Department, being responsible for management of regulation implementation, intellectual property rights protection, anti-counterfeit goods, and anti-fake online reviews of e-commerce platforms. The department has integrated internal resources of the Group to conduct systematic management on fake online reviews. Alibaba’s search division has carried out whole transaction chain monitoring on “fake transactions” of rogue merchants through algorithm models and human inspection. In 2016, with the assistance of Alibaba, the police arrested 880 criminal suspects, destroyed 1,419 sites involved in making and selling of counterfeit goods, and the amount of money involved in those cases reached over RMB3 billion.

Alibaba has jointlybuilt business integrity system


Hupan College Business Units

Newcomers’ Development Professional Development Leadership Development Global Development

Talent Development System of Alibaba Group

Time-Honored Alibaba

Operation University

Time-Honored Hupan College

xue.alibaba-inc.com

Organizational Operation

Tmall Inn

Overseas Talent Cultivation

(International Class)

Overseas Talent Dispatching

(Special Envoy Class)

Succession Planning

Talent Promotion

Internet Developer Program

Product University

UED University

Data University

City University

Arhat Hall (General Competence)

Time-Honored Majors

Global Leadership College

CTO Technology University

CCO Service University

Cainiao University

Jingcheng University

......

Alibaba Learning Platform

Compensations and Benefits

Competitive compensations and benefits in the industry;Equal pay for equal work;100 percent coverage of social insurance

Labor and Rest

Employees enjoy five to 15 days of paid leave based on the number of their working years;Strictly implement the provisions on leave during female employees’ pregnancy and lactation

Equal Employment

Equality between men and woman and among ethnic groups;Protect legal rights and interests of women employees in accordance with laws and regulations;Strictly implement national labor laws and regulations, and guarantee 100 percent signing rate of labor contracts;Build recruitment platform for graduates and conduct regulatory recruitment activities

Occupational Health

93 percent coverage of employees in terms of physical ;examination and health files establishment Strengthen employees’ occupational health training;Set up green medical treatment channels for major diseases

Wealth

Social insuranceInsurance and housing fund;Policies

Commercial insuranceCommercial insurance program;Commercial insurance application

iHomeLoan program;Loan application

iHope-Painbow programProgram introduction;Apply

iLoveCollective wedding;Alibaba Day;First/third/fifth anniversary ceremony

iHealthEmployee health self-management

iBabySchool introduction;School guide

Physical examinationPhysical examination for employees

VocationVocation policy;Apply for /approve a vacation

iHelp-Dandelion programProgram introduction;Apply

iEasyGovernment services;Finance

Live Health

Orange Love sharing loveEmployee benefits and care

Group Wedding Ceremony on “Alibaba Day” of 2016

In 2016, Alibaba conducted over 2,000 trainings, covering corporate strategy, business sharing, professional skill, corporate culture, and employee care, and so on.

Training of Alibaba UED University

Alibaba has attached importance to humanistic care for employees, and set up several care systems for employees and their family members. The “Orange Love” is Alibaba’s integrated benefits plan brand, which covers 27 items of benefits such as wealth guarantee, work and life balance, and health guarantee, and so on.

Employee SecondTo safeguard the basic rights and interests of employees, improve employee development system, smooth career development channels, create good work environment for employees, and enhance employee care help Alibaba constantly strengthen sense of cohesion and belonging of employees, guaranteeing the healthy operation and sound development of the Group.

Guaranteeing Basic Rights, Interests and Benefits

Boosting Personal Development and Training

Promoting Work and Life Balance

Alibaba has strictly abided by the labor law and other laws and regulations, signed labor contracts with employees in accordance with law, paid social insurance, and protected privacy of employees, constantly improving the management basis of labor employment. As the end of 2016, Alibaba has had 46,819 employees. At present, 38 percent of Alibaba’s staff are female employees, and the senior female executives take a proportion of 23 percent. Of the 36 partners of the Alibaba Partnership, 12 are female, or nearly one third.

Alibaba has established a complete training system consisting of new staff training, professional training, leadership training, and business unit training, and the training courses cover the corporate culture, corporate values, personal management, 100-year responsibility, professional skill training, and team management, and so on. The Company has also provided online course training through online learning platform, supporting customized functions such as online testing and learner’s portfolio establishment, so as to achieve common growth of employees and Alibaba. In addition, it has set up various prizes and held various contests to reward employees with outstanding performance, to encourage employees to improve their skills, and to cultivate innovation awareness of employees, using complete incentive mechanism to promote their growth.

We advocate the idea of “happy work and enjoy life” at Alibaba, striving to provide harmonious office and leisure space, and to create free and open work environment and warm team atmosphere.

Alibaba ClubsThe “Alibaba Clubs” is made up of hobbies clubs voluntarily organized and autonomously managed by Alibaba employees. The clubs are dedicated to enriching the spare time life of the employees and demonstrating and promoting the “Fun” culture of Alibaba. Now, there are 42 hobbies clubs with more than 10,000 members in total.

Alibaba DayIn memory of the spirit of determination, solidarity, commitment, mutual-aid and persistence Alibaba employees demonstrated when fighting SARS in 2003, Alibaba announced the day of May 10 as the “Alibaba Day.” On this day, Alibaba employees can bring their pets and their kids to the office in pajamas, and two traditional programs – “Family & Friends Day” and Alibaba Group Wedding Ceremony will be held.


Alibaba

Alibaba G

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Shareholder Third

Partnership and Win-Win Results

Public WelfarePublic welfare is the gene in common of Alibaba Group’s businesses. One of the distinctive characteristics of Alibaba’s public welfare causes is “most extensive engagement.” The development and progress of Alibaba’s public welfare causes comes from its understanding to public welfare, and benefits from its business development and resource accumulation. Alibaba focuses on social issues and demands in public welfare practices, and uses innovative ideas and business advantages to build its own distinctive public welfare system.

Alibaba has appropriated 0.3 percent of the Group’s annual revenue as public welfare funds since 2010. In the fiscal year 2017, Alibaba Foundation donated RMB160 million, directly benefiting two million vulnerable people both in China and abroad. In 2016, Alibaba Foundation reviewed and approved 67 projects, and the contract amount of those funded projects reached about RMB134.35 million totally. The foundation focuses on supporting environmental protection projects (including Internet + environmental protection, environmental education, and environmental innovation), special projects of the board committee, and commitment projects of the Group.

The inaugural XIN Philanthropy Conference was held at Hangzhou in July 9-10, 2016. Nearly 1,000 representatives of non-profit organizations, NGOs, leading academic institutions and companies, as well as social enterprises participated in the meeting. The XIN Philanthropy Conference aims at encouraging grassroots public welfare organizations, supporting environmental protection actions around the world, caring for over 40 million children and teachers in rural areas across China, and promoting to establish the XIN culture that everyone can be involved in charity activities.

Shareholder Engagement

Promoting Industrial Development and Progress

Three Hours for Public GoodBoosting Cooperation with Government

Alibaba has attached importance to the protection of rights and interests of shareholders, and given sustainable commercial returns back to them. We have improved internal control system and enhanced internal anti-corruption actions to protect shareholders’ rights and interests. We have also built and improved the communication platform, and conducted exchanges with shareholders by various means, striving to establish harmonious investor relations.

Ali Research Institute has conducted various activities including holding the 4th China Taobao Village Summit Forum (Shuyang) and the 3rd China County E-commerce Summit to promote the inclusive process of e-commerce, boost the development of county- and village-level e-commerce, and advanced the sustainable and fast development of e-commerce. The institute has released annual China Taobao village research report, annual county e-commerce development report, “Future of Trade: Cross-Border E-Commerce Connects the World,” “Digital Economy 2.0,” and other reports, and published the book “Rise of New Economy,” expounding the development trend of digital economy that is represented by e-commerce.

On September 10, 2015, Jack Ma launched an initiative of “three hours for public good per person per year” via internal e-mail system. In the fiscal year 2017, the number of Alibaba’s employees participated in volunteer services reached 96,000 persons/times, and the total time amounted to 141,000 hours.

Alibaba Could has been committed to providing safe and reliable computing and data processing capability by adopting the way of online public services, letting computing and AI become inclusive technologies.

Zjzwfw.gov.cnIn cooperation with the Zhejiang government, Alibaba Cloud has helped build the unified e-government platform for Zhejiang Province. Now, over 9,000 public projects of 4,000 government departments can be completed thought the website of Zjzwfw.gov.cn. The platform also integrates 24,000 e-government service resources of over 50 provincial government departments, as well as 11 city-level and over 90 county-level government departments, realizing the online office function, which facilitates the public.

Jszwfw.gov.cnIn cooperation with the Zhejiang government, Alibaba Cloud has helped build the e-government platform of Jszwfw.gov.cn. Relying on the technologies of Alibaba Cloud, Jiangsu government has fully realized “eight unifications,” which includes unified government portal, unified client, unified acceptance platform for provincial and city-level government departments, unified ID verification system,

Maintain two-way communications with shareholders, including one-on-one and group meetings, investor meeting reports, regular phone calls and e-mails;Establish information disclosure mechanism and procedure, and observe the information disclosure requirements under the U.S. securities laws and regulations;Continuously update the information and news relating to shareholders on the investor relations channel of official website;Provide a set of full financial and operation information, including annual reports and quarterly reports;Release quarterly financial reports, Form 6-K quarterly reports and Form 20-F annual reports in electronic version that are accessible from the English channel of investor relations on our official website;Hold institutional investor and analyst meetings;Demonstrate corporate culture and values through business activities such as the “11.11” Shopping Festival, to improve the mutual understanding between investors and Alibaba;Provide investors with channels to participate in corporate governance through the annual general meeting of shareholders and written communications;Observe all the legal requirements of Cayman Islands (with jurisdiction over the Company), which reflect the protection to investors.

Alibaba Foundation hopes that in the next five years, the employees can offer volunteer service hours that equals to 102 years and promote 10 billion persons/times of people to participate in public welfare activities per year, ultimately realizing the vision of everyone can be involved in charity activities.

—— Jianhang JinPresident of Alibaba Group and Chairman of Alibaba Foundation

Hangzhou “City Brain” The “Hangzhou City Brain” collects information of over 50,000 road cameras of Hangzhou, and processes the collected data at back-office by artificial intelligence system, and then transfers the results to transport facilities to implement. The core of “City Brain” uses the ET artificial intelligence technology of Alibaba Cloud, which can conduct overall real-time analysis of the city, automatically deploy public resources, and amend defects in urban operations, acting as a super artificial intelligence system.

In September 2016, the “City Brain” was put into use at Shixin Road of Xiaoshan District of Hangzhou. Test data showed that, through the intelligent regulation of traffic lights, traffic flow on the street has improved three to five percent on average, and even up to 11 percent on some sections of the road. If we use manpower to complete those tasks, a total of 150,000 traffic policemen will be needed.

unified public resources transaction platform, unified public payment platform, unified electronic license database, and unified service hotline of 12345. The building and operation of Jszwfw.gov.cn can greatly improve the efficiency and service capability of governments, as well as the service experience of enterprises and the public.


Liao Qiuyun, member of Alibaba Foundation Committee; she is responsible for over 20 public welfare projects a year, and is the initiator of “Song of Nature Contest.”

Bo Lei, leader of the Alliance for Internet Security Volunteers and member of “Tuanyuan” project; she has conducted training for over 6,000 policemen.

Ru Ci, leader of Happiness Group of “House of Love”; for years, she and her team have rescued thousands of stray cats and dogs.

Bang Huai, member of Alibaba Foundation Committee and engineer of AutoNavi; he devotes himself to the cause of “technology + charity,” using map to help support public welfare activities.

Singing the “Song of Nature”: She is a better ferryperson than Tony Leung Chiu-Wai

Two hours of hobbies a day make her to show on CCTV’s programmer, to win

prizes, and to gain recognition of the police

She devote herself to the cause of saving stray cats and dogs

A young employee who once had the same profession with Jack Ma opens new

channel for promoting public welfare cause

Of Alibaba’s employees who have been devoted themselves into public welfare causes, the following four are typical representatives.

4.7 billion person/times of people

over 310 million customers

Launching ceremony of “Charity Goods 2.0” program

Platform-Based Public Welfare

In the fiscal year 2017, a total of 4.7 billion persons/times of people participated in public welfare activities promoted by Alibaba’s platforms; and over 310 million customers and more than 1.778 million merchants participated in public welfare activities through Alibaba’s platforms.

Charity Stores In the fiscal year 2017, the number of charity stores reached 643, the annual amount of money raised reached RMB47.76 million, and number of transactions amounted to 1.45 million.

Charity Goods In the fiscal year 2017, the “Charity Goods” program funded a total of 73 projects in the fields of poverty alleviation, education support, environmental protection, health care, and disaster relief, and the transaction number of charity goods reached 37.214 million. Now, at the e-commerce platforms of Alibaba, 54,000 merchants donate more than 0.3 percent of their operating revenue to public welfare activities.

On April 6, 2016, Alibaba Group, together with China Foundation for Poverty Alleviation, Amity Foundation, and China Charities Aid Foundation for Children, jointly launched the “Charity Goods 2.0” program, hoping to promote public welfare projects through Internet charity mode, and to use business mind to boost sustainable development of public welfare causes.

Alibaba Could has been committed to providing safe and reliable computing and data processing capability by adopting the way of online public services, letting computing and AI become inclusive technologies.

Zjzwfw.gov.cn:In cooperation with the Zhejiang government, Alibaba Cloud has helped build the unified e-government platform for Zhejiang Province. Now, over 9,000 public projects of 4,000 government departments can be completed thought the website of Zjzwfw.gov.cn. The platform also integrates 24,000 e-government service resources of over 50 provincial government departments, as well as 11 city-level and over 90 county-level government departments, realizing the online office function, which facilitates the public.

Jszwfw.gov.cn:In cooperation with the Zhejiang government, Alibaba Cloud has helped build the e-government platform of Jszwfw.gov.cn. Relying on the technologies of Alibaba Cloud, Jiangsu government has fully realized “eight unifications,” which includes unified government portal, unified client, unified acceptance platform for provincial and city-level government departments, unified ID verification system,

Environmental Protection and Public Welfare

Alibaba Group has attached great importance to environmental protection. By 2017, it has invested RMB220 million in the field of environmental protection.


Future Prospect

Nature Education Alibaba Foundation hopes to awaken the environmental protection awareness of the public through nature education, makes special effort to promote the development of nature education industry, and focuses on funding the content development and talent cultivation of nature education. At the 3rd China Nature Education Forum, Alibaba Foundation released the 2017 natural education funding plan, and promised to fund the holding of the forum for five years. It planned to help support nature education from two aspects of industrial promotion and the public engagement.

Blue Map The Blue Map is one of the environmental protection projects funded by Alibaba Foundation. In April 2014, the “Blue Map 3.0” was launched, facilitating the public to learn the open real-time data of over 2,540 air quality monitoring stations in more than 390 cities of 31 provinces (municipalities/autonomous regions) across China. The 3.0 version also covers the real-time emission and pollution data of 12,000-odd enterprises in China’s 380 prefecture- or county-level cities. The “Blue Map” has so far established connection with the river pollution reporting platforms of the Ministry of Environmental Protection and the Ministry of Housing and Urban-Rural Development, and tens of polluted rivers have been treated under the supervision of government. The “Blue Map” app-based reporting platform will certainly promote the public to participate in water pollution treatment campaign.

We will, based on our advantages and the application of Internet, big data, and cloud computing technologies, as well as innovative methods, continuously serve the participants of the economy, constantly improve business infrastructure, create inclusive economic ecosystem, and strive to solve more social and environmental issues.

The health and prosperity of the new economy requires joint efforts of various participants. Alibaba will act as a builder, participant, and enabler of the new economy, and will leverage its extensive influence to promote stakeholders to participate in the building and improvement of the new economy, and to boost its inclusiveness and sustainability, making life in the future healthy and happy.

Cleaning Action The “Cleaning Action Funding Plan” is the core project of water environmental protection of Alibaba Foundation. The plan promotes the way of working of “data + environmental protection,” uses Internet and public environmental data to conduct positive interaction with local environmental protection bureaus, encourages civilian organizations to participate in the transformational building of China’s green economy, utilizes market-oriented approaches to protect water environment, and enhances green finance and other innovative mechanisms for water environmental protection. The plan has so far promoted the market-oriented environmental protection schemes such as green supply chain management, green credit, and green securities.

By 2017, the “Cleaning Action” has expanded from originally protection of local water environment by local people to opportunity creation for the public and then to the adoption of “Internet + environmental protection,” funding a total of 127 projects relating to environmental protection, and the funding amount has reached RMB143 million. The “Cleaning Action” has so far established partnership with 80 organizations.


GRI 4.0 / CASS-CSR 3.0 Index

Catalog

Message from CEO

G4-EC1 S4.12，S4.14

P3.1，P3.2

Green Development

G4-37 M1.1，M1.3

Alibaba in Numbers of FY2017

G4-1，G4-2

Shared Development

G4-12，G4-EC7，G4-EC8

GRI 4.0 CASS-CSR 3.0 Page number

Appendix

Alibaba: From Enterprise Platform to Economic Entity G4-EC8 S1.4

P4.2，P4.4，S4.4

M2.7，M2.9

G4-EC7，G4-EC8，G4-EN31

Economic Globalization G4-8，G4-15

G4-8，G4-56，G4-57，G4-58，G4-PR2

G4-EN6，G4-EN7，G4-EN12，G4-EN27

M2.4，M2.5，M2.9，M3.2，M3.3，S1.1，S1.2，S1.4，S1.5

S2.1，S2.2，S2.7，S2.9，S 2 . 11，S 2 . 1 2，S 2 . 1 3，S 2 . 2 2，S 2 . 2 4，S 2 . 2 5，S2.28，S2.29

S 4 . 2 ， E 1 . 1 0 ， E 2 . 1 ，E2.2，E2.5，E2.7，E2.11，E2.18，E2.19，E3.6，E4.5

G4-28，G4-30 P1.1，P1.2

A1

Science and Technology Innovation

G4-31 A4

P5.2

A3

Future Prospect

G4-3，G4-4，G4-5，G4-8，G4-17，G4-24，G4-34，G4-38，G4-42

P4.1，P4.2，P4.4，G1.1，G1.4，G5.1，F5.2，G5.3

S 4 . 9 ， S 4 . 1 0 ， S 4 . 1 2 ，S4.13，S4.14，E1.5，E4.5

S4.1，S4.4，M3.1

Social Innovation

Customer First

Public Welfare

Employee Second

About Alibaba

Shareholder Third

Partnership and Win-Win Results

Key Performance Indicators

GRI G4 / CASS-CSR 3.0 Index

Reporting Specifications

Suggestions and Feedback

E1.2，E4.2，S4.5

G4-9，G4-10，G4-LA10，G4-LA12

G4-EC1

G4-32

About AlibabaCorporate Profile

Corporate Governance

Alibaba Group was founded in 1999 by 18 people led by Jack Ma, a former English teacher in Hangzhou of east China's Zhejiang Province. From the outset, the Company’s founders shared a belief that the Internet would level the playing field by enabling small enterprises to leverage innovation and technology to grow and compete more effectively in the domestic and global economies. Since launching its first website to help small Chinese exporters, manufacturers and entrepreneurs to sell internationally, Alibaba Group has grown into a global leader in online and mobile commerce. Today Alibaba and its affiliates operate leading wholesale and retail online marketplaces as well as Internet-based businesses offering advertising and marketing services, electronic payment, cloud computing and network services, and mobile solutions, and so on.

Currently, Alibaba Group has formulated a long-term strategic objective of serving 10 million profit-making enterprises and two billion consumers around the world, clarified the three major strategies of globalization, rural development and big data & cloud computing, formed seven core business scopes of e-commerce, finance, logistics, cloud computing, globalization, Internet of Things, and consumer media. The Group has also carried out industrial layout in the aspects of film, health, sports, music, and local life services, and so on.

The Group’s governance team consists of the Board of Directors, Board Committees, Alibaba Partnership, and senior management. By such governance structure, Alibaba is dedicated to achieving sustainable development objectives within the Group and externally while pursuing its own strategic objectives.

Appendix

P1

P2-P3

P4-P5

P6-P9

P10-P11

P12-P15

P16-P19

P20-P25

P26-P27

P29-P32

P35-P40

P42-P43

P41

P44

P33

P34

P28

P28-P29


Role and Responsibilities of Board

The Board of Directors guides and supervises the business and affairs of the Group in accordance with all applicable laws and regulations. Under such system, it acts as the top decision-making body of the Group, except for issues that shall be reserved to be solely or jointly determined by/with shareholders. The Board is responsible for selection and supervision on the performance of the CEO and other management members, creation of long-term operation strategies of the Group, and determination of the compensation for executives.

•Board Structure

Jack Yun MA

Joseph C. TSAI

Daniel Yong ZHANG

J. Michael EVANS

Masayoshi SON

Eric Xiandong JING

Chee Hwa TUNG

Walter Teh Ming KWAUK

Jerry YANG

Börje E. EKHOLM

Wan Ling Martello

Chairman

Executive Vice Chairman

Director and Chief Executive Officer

Director and President

Director

Director

Independent Director





Alibaba G

roup

Audit Committee Compensation Committee Nominating and CorporateGovernance Committee

•Senior Management

Jack Yun MA

Joseph C. TSAI

Daniel Yong ZHANG

Michael EVANS

Maggie WU

Judy TONG

Jeff ZHANG

Zhenfei LIU

Trudy DAI

Tim STEINERT

Jianhang JIN

Chris TUNG

Yongfu YU

Simon HU

Sophie WU

Jessie ZHENG

Walter Teh Ming KWAUK (Chairman)

Börje E. EKHOLM

Wan Ling Martello

Jerry YANG (Chairman)

Walter Teh Ming KWAUK

Joseph C. TSAI

Jack Yun MA (Chairman)

Chee Hwa TUNG

Jerry YANG

Chairman

Executive Vice Chairman

Chief Executive Officer

President

Chief Financial Officer

Chief People Officer

Chief Technology Officer

Chief Risk Officer

President of Wholesale Marketplaces

General Counsel and Secretary

President

Chief Marketing Officer

Chairman and Chief Executive Officer of Alibaba Digital Media & Entertainment Group (Preparatory)

President of Alibaba Cloud

Chief Customer Officer

Chief Platform Governance Officer


•Board Committee


CultureManagement

yget

artS

Cust

omer

s

Employees

Shareholders

Environmental value

Social value

Econ

omic

valu

e

CCultuultuCuultuCultur

mic

alue

val

Cust

om

eeeeMMMaMMM nMMManMMMaMM n

Employeesom

ers

To make it easy to do business

anywhere

Sharedlayer

eesees

Symbiotic layer

Marke

t Environment

Government

Society


Social Responsibility Model Dynamic compassAlibaba performs economic, social and environmental responsibilities and creates economic, social and environmental values. The issues under the three values are attributed to various stakeholders (as shown in the following table). The outer triangular structure includes various issues of the three values, and the symbiotic layer and shared layer rotate with one another to match the corresponding issues under those three values.

Stakeholder

Customers

Employees

Economic value Social value Environmental value

Inclusive products and

services;

Innovation in science

and technology;

Integrity and security

guarantee

Competitive compensations;

Diversified benefits;

Career development

Basic rights and;

interests protection;

Customer satisfaction;

Privacy protection

Equal employment;

Basic rights and

interests protection;

Employee care

Green choice;

Green transaction

Healthy work

environment

Green office

Shareholders

Society

Environment

Economic returns Green investment

Minority shareholders’

rights and interests

protection;

Information disclosure

Responsibility procurement;

Cultivate industry talents;

Build industry platform

Supply chain growth;

Promote industrial

development;

Boost economic

development

Green supply chain；

Green logistics；

Green initiative；

Environmental

protection exchanges

Support environmental

protection;

Promote emission

reduction by smart

transport

Pay taxes in full;

Promote economic

transformation and

upgrading;

Fair competition

Legal compliance;

E-government affairs;

Judicial sale

Platform-based public

welfare;

Employee engagement

in public welfare

Environmental

protection public

welfare

Green building;

Green office;

Energy-saving and

emission reduction

Promote social

employment

Reduce consumption

of resources and energy

Awaken awareness of

environmental protection

Market

Government

“To make it easy to do business anywhere” is both the mission of Alibaba and the source of inspiration of all products and innovations of Alibaba. We have always integrated the Internet spirit of openness, transparency, sharing and responsibility into our day-to-day work and operation. We not only use Internet culture to promote our own development and progress, but also are committed to broadcasting Internet culture in the whole ecosystem, so as to promote the development and progress of all participants. In the business ecosystem of Alibaba, all of the participants including consumers, merchants, suppliers and other stakeholders enjoy opportunities of growth and achieving benefits. We respect entrepreneurship and innovative spirit, and always pay attention to and meet the demands of stakeholders, so as to achieve business success and fast growth.

Core of the compass: To make it easy to do business anywhere“To make it easy to do business anywhere” is the mission of Alibaba and the foundation of

Alibaba’s social responsibility system that is rooted in business model.

Framework of the compass: Culture, strategy and managementCulture and management are highly integrated and mutually supported at Alibaba. As the foundation for Alibaba to implement strategies, culture, management and the “three major strategies” provide strong support for Alibaba’s social responsibility system. Only the highly integration of culture, management and strategy can provide full guarantee for social

responsibility practice of Alibaba.

Inner circle of the compass: Symbiotic layer and shared layerConsidering the relations between stakeholders and Alibaba, the customers, employees and shareholders form the symbiotic layer, while the market, society, government and environment form the shared layer. And all of those form the social responsibility ecosystem of Alibaba. The relations between Alibaba and stakeholders are interdependent and mutually influenced. Alibaba needs support of stakeholders to achieve healthy development and creates values for stakeholders.

Alibaba Compass


Stakeholders

Indicator

Indicator

Customers

Employees

Shareholders

Market

Government

Society

Environment

Operating revenue (RMB million)

Number of employees (person)

Stakeholders’ Expectations

FY2015

2014

Responses from Alibaba

FY2016

2015

FY2017

2016

76,204

27,257

101,143 158,273

56

3,767

22

41,226

13

16.97

36

454

46,819

6,705

22.66

14

11,394

38.51

27.50

100

43,643

Alibaba G

roup

Stakeholders Communication

Key Performance Indicators

Growth of operating revenue (%)

Number of newly recruited employees (person)

GMV (RMB billion)

Proportion of newly recruited employees (%)

GMV growth (%)

Number of employees with disability (person)

Total profits (RMB million)

Number of female employees (person)

Net assets yield (%)

Proportion of female employees (%)

Earnings per share (RMB)

Proportion of female managers (%)

Asset/liability ratio (%)

Signing rate of labor contracts (%)

Active buyers (million persons)

Coverage of social insurance (%)

45

9,113

2,444

29.40

46

16

24,320

11,006

15

40.40

9.70

23.20

38

100

350

100

33

11,680

3,092

25.30

27

7

71,289

16,949

29

38.90

27.89

25.30

31

100

423

100 100

Coverage of physical examination and health files for employees (%)

Cases of OccupationalDiseases (Case)

Annual paid leave per employee (day)

Trainings for security education (time)

Spending on supporting employees with difficulties (RMB10,000)

93

0

15.3

4

635

91.90 93

0 0

14.5 14.4

4 4

623 763

Crackdown on infringement of intellectual property rights;

Building and improving security system;

Improving customer service system;

Platform tool support and resource sharing;

Boosting growth of merchants

Strictly abiding by laws and regulations;

Setting up round table, Aliway, OPENDAY, Open mailbox

and other communication platforms;

Establishing complete training system;

Promoting broadcasting and integration of corporate

culture in Alibaba;

All-around care system -- Orange Love

Honest and fair transactions;

Transaction security guarantee;

High-quality service;

Capability improvement of merchants

Basic rights and interests protection;

Democratic management;

Good work environment;

Good work atmosphere;

Understanding corporate operation situation;

Learning changes of corporate operation in a

timely manner;

Protecting basic rights and interests

Fair competition;

Capability improvement;

Matured business ecosystem;

Promoting development and transformation of

economy;

Boosting development of e-commerc

Legal compliance;

supporting development of e-government

Promoting employment;

Boosting community development;

Poverty alleviation and disaster relief

Reducing environmental pollution;

Reducing energy consumption;

Improving environment

Strictly abiding by laws and regulations;

Exploring innovative governing model with government

departments;

Jointly building e-government

Providing entrepreneurship platform

Empowering the disabled;

Supporting development of public welfare organizations;

Improving public welfare platform;

Employee engagement in public welfare

Green office;

Green building;

Energy-saving and emission reduction;

Conducting environmental protection and public welfare

activities

Supplier meetings;

Tendering and bidding meeting;

Performance review;

Integrity agreement documents;

Holding or participating in industrial seminar;

Participating in theoretical research and conducting

research on industrial development trend;

Offering online and offline courses through Taobao

University;

Promoting economic development through e-commerce

General meeting of shareholders;

Regular reports and corporate announcements;

Enhancing risk monitoring, prevention and response


Reporting Specifications

Compilation Basis

Data Sources

Access to the Report

Period Scope

Currency

The preparation and compilation of this report follows the “G4 Sustainability Reporting Guidelines” of Global Reporting Initiative (GRI) and the “Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises” (CASS-CSR 3.0) of Research Center for Corporate Social Responsibility of the Chinese Academy of Social Sciences.

The data in this report, unless otherwise indicated, is from the prospectus, internal statements, and relevant statistics of Alibaba Group. As for statistics, “FY” and “year” are used to indicate a fiscal year or a calendar year respectively, e.g. “FY2017” and “Year 2016”; a year that is not specially indicated is a fiscal year.

In view of environmental protection, the electronic version of this report in PDF format is recommended, which can be downloaded from our social responsibility website (http://csr.alibaba.com).

If you request for this report in paper, or have any questions, comments or feedback on this report, please contact Alibaba’s Social Responsibility Department via e-mail ([email protected]).

You could view the previous social responsibility reports to learn our social responsibility course:

We have released social responsibility reports since 2007, disclosing ideas, practices and performance of social responsibility. We have also developed a specialized social responsibility channel, which serves as a platform for external communications, to conduct stakeholder engagement.

The period scope covers the fiscal year 2017, which is from April 1, 2016 to March 31, 2017. Some contents may surpass the above scope.

All currency amounts are in RMB (yuan) unless otherwise stated.

This report is the ninth corporate social responsibility report released by Alibaba Group (herein referred to as “Alibaba,” “the Group,” “the Company,” and “we”). The report includes contents of some affiliated companies such as Ant Financial Services Group.

We have opened the Alibaba Foundation, Aliway, and other WeChat official accounts, releasing real-time information relating to operation and development of Alibaba.

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Social Responsibility Reportof Alibaba Group,2015-2016(English)

Social Responsibility Reportof Alibaba Group,2014-2015(English)

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