Lazada, the number one e-commerce platform in Southeast Asia, released its FY2024 Environment, Social, and Governance (ESG) Impact Report titled “Accelerating Innovation, Anchoring Resilience.” The report provides an overview of the company’s progress and key achievements over the year in its commitment to sustainability, community empowerment, workforce development, and governance practices.
Major Environmental Progress
What makes the FY2024 report particularly distinctive is the introduction of Lazada’s in-house carbon data collection platform. At the platform level, equipped with the most advanced activity-based carbon accounting methodology, quality and accuracy in the company’s carbon emission data could be apparently raised, especially regarding direct and energy-indirect emissions. The new system brings a significant improvement in the business’s ability to monitor and manage its environmental impact.
Due to Lazada’s optimization for business, the platform registered a commendable 40% cut in total GHG emissions compared to the previous reporting period. The outlays of these reductions include a 54% decrease in Scope 1 emissions, an 8% reduction in Scope 2 emissions, and a 30% decrease in Scope 3 emissions. These reductions are indicative of a strong ongoing commitment by Lazada to the environment and sustainability in the general eCommerce sector.
Empowering Communities Through Technology and Innovation
Lazada’s FY2024 report also focuses on the company’s engagement in empowering communities across Southeast Asia through technological innovation and education. These include the launching of “Ask the Buyers,” a feature that will help enhance product selection, while “LazzieChat” was created on the back of OpenAI’s ChatGPT. These innovations are targeted at improving customer experience and making online shopping more accessible and intuitive.
Furthermore, Lazada introduced QR code payment across the nation in Singapore and Thailand to extend the access to online shopping. The company launched the Lazada Sustainability Academy as a means of supporting SMEs in their region. Through this facility, businesses are given resources and training to adopt sustainable practices with a view to increasing the eco-friendliness of business operations in Southeast Asia.
Building a Future-Ready Workforce
The same is the case with creating a future-ready workforce, AN ESG reported by Lazada. It joined hands with the West Java Education Ministry in Indonesia to launch the “Naik KeLaz” training program, where the company is training vocational high school teachers on necessary digital skills, preparing the workers of tomorrow to meet the demands of a digital economy.
Thus, Lazada is internally developing an ESG training module for employees, as it works to make ESG principles part of the DNA of daily business practices. In that way, it would be in tune with the wider program so all employees could continue their commitment to the Sustainability Agenda, using the greatest effort to contribute to the ESG agenda fulfillment.
Lazada’s commitment to reducing its carbon footprint was underlined none more so than by the launching of its first Sustainable Logistics Hub in Thailand this September. Powered by solar energy, the hub presents a giant leap in the direction of the company’s thrust on sustainability. Solar panels set up at the hub provide 20 percent of its electricity needs, while it also uses electric motorcycles and uniforms made of recycled PET plastics to reduce its overall carbon footprint.
This is part of the company’s relentless effort to cut GHG emissions down and proactive approaches toward environmental stewardship, which are integral parts of its long-term sustainability strategy. With investments in renewable energy and sustainable infrastructure, Lazada will be well positioned as a leader in green logistics and environmentally responsible business practices.
Strengthening Governance Practices
Effective governance continues to be one of the integral parts of the ESG strategy for Lazada, and one of the reasons for this is the detailed training programs that all employees continue to enroll in. The company has made sure that 100% of its workforce has been availed the training on the Code of Business Conduct and the Anti-Bribery and Corruption Policy. These initiatives show that Lazada is concerned with having high integrity and transparency in all operations.
Not only that, but Lazada’s flagship Intellectual Property Protection Platform acts as a core driver in protecting the integrity of its marketplace. The company processes takedown requests efficiently and deploys artificial intelligence to remove infringing listings automatically, hence further fortifying the governance framework of the company.
Future Outlooks
With Lazada’s continuous expansion in operation and influence across Southeast Asia, it remains steadfast in its commitments toward sustainability, community empowerment, and good governance. The FY2024 ESG Impact Report chalks out clearly what lies ahead for the company, its goals, and the way it is going to implement these in driving positive environmental and social outcomes.
Lazada’s adherence to the GRI Standards 2021 in reporting testifies again to this very fact of commitments to transparency and accountability. “Setting ambitious commitments and making steadfast progress in this journey has ensured that Lazada is contributing to sustainable Southeast Asia and continuously staying ahead among companies within the e-Commerce industry.”
Source: Lazada