Financial technology giant Ant Group unveils midterm carbon reduction plan as it pursues net-zero emission by 2030
- Ant Group will work with Alibaba Cloud to boost the share of renewable energy on its total electricity consumption to 30 per cent in five years
- Experts from the China Environmental United Certification Centre will advise the fintech giant on its carbon neutrality plan
The intermediate goals – unveiled for the first time – form part of the firm’s short, medium and long-term efforts aimed to initially reduce and eventually balance out the firm’s entire carbon footprint through clean energy procurement and carbon offset investments, according to Sabrina Peng Yijie, Ant’s president of social good and green development.
“We will certainly face challenges in this journey,” Peng said in an interview. “That is why we will have experts to help review our progress and advise us annually. We are ready to put in the investments required to make it happen.”
Hangzhou-based Ant has invited experts from the China Environmental United Certification Centre, which is also working with the organisers of the 2022 Beijing Winter Olympics in assessing the event’s carbon reduction solutions, to advise the firm on its carbon neutrality plan.
By 2030, Ant expects to completely offset indirect carbon emissions arising from supply chain activities, including those of purchased goods and services, leased facilities, business travel, waste management and employees commuting.
Ant Group wants to get rid of carbon in its business by 2030
Most of Ant’s carbon footprint is currently from data centre capacity that it leases from Alibaba Cloud, Peng said.
Data centres require plenty of energy to keep cool. These are secure, temperature-controlled facilities that typically house thousands of large-capacity servers and data storage systems, and equipped with multiple power sources and high-bandwidth internet connections.
The amount of electricity required for one data centre to be running at the right temperature is sufficient to meet the needs of 50,000 to 100,000 households, according to Philippe Delorme, the Hong Kong-based executive vice-president of energy management at Schneider Electric.
Electricity consumption in China’s data centre sector was forecast to rise by two-thirds by 2023 from 160.89 terawatt-hours in 2018, according to a joint report by Greenpeace and North China Electric Power University. The sector made up 2.4 per cent of the nation’s total electricity consumption in 2018.
Tencent leads Alibaba in Big Tech clean energy scorecard
Alibaba fell from first to fourth place in this year’s renewable power use rankings for cloud providers, according to Greenpeace East Asia’s latest clean energy scorecard for the country’s Big Tech sector.
Alibaba Cloud, China’s largest cloud services provider, has been committed to developing green data centres since 2015 and to embed eco-friendliness in its operations, according to a company spokeswoman.
This year, Ant plans to offset carbon emissions from its own facilities by purchasing carbon offset credits from clean energy project owners.
For the long term, the company’s full supply chain carbon reduction strategy will prioritise energy efficiency improvements, according to Peng. She said that will be followed by increased renewable energy procurement and investment, alongside natural reduction schemes such as tree plantation. Forests are natural giant carbon storage sites.
Ant also plans to deploy blockchain technology with anti-tampering features to help track of the progress of its carbon-reduction measures, while it also pursues research and development of clean energy technologies.