Alibaba Commits to Decarbonize Operations by 2030

Alibaba (BABA) has affirmed its commitment to achieving carbon neutrality. The Chinese internet giant has introduced a Scope 3+ target through which it plans to ensure its operations are decarbonized by 2030. BABA shares rose 1.54% to close at $122.10 on December 17.

Alibaba is a Chinese company that operates online and mobile marketplaces. It has four business segments, Core Commerce, Cloud Computing; Digital Media and Entertainment; and Innovation Initiatives and Others. The Alibaba earnings report for Q4 2021 is scheduled for February 10, 2022.

Decarbonization Drive

The company plans to achieve carbon neutrality for Scope 1, 2, and 3 by 2030. It also intends to achieve CO2 neutrality in all three scopes by 2030 by facilitating 1.5 gigatons of decarbonization across its business ecosystem.

As part of the decarbonization drive, Alibaba is to rely on systematic and science-based approaches to achieve its targets. It also plans to rely on energy saving and efficiency improving technologies to enhance CO2 reductions. Its ultimate goal is to transform its energy structure by turning to renewables and exploring carbon removal initiatives.

According to Dr. Chen Long, Vice President of Alibaba Group, digital platforms will play a pivotal role in enabling a low carbon circular economic model. Consequently, the company remains on course to achieve the 1.5-degree target as set by the Paris agreement.

Stock Rating

Last week, Mizuho securities top analyst James Lee reiterated a Buy rating on BABA stock with a $215 price target, implying 10% upside potential to current levels. According to the analyst, the e-commerce giant is transitioning into a super-app as it seeks to meet the needs of diverse demographics, product categories, and content marketing.

Consensus among analysts is a Strong Buy based on 21 Buys and 2 Holds. The average Alibaba price target of $208.29 implies 70.59% upside potential to current levels.