CASE STUDY 1 JD Logistics’s innovation for greener, smarter supply chains Overview: JINGDONG (JD) Logistics is China’s leading technology- driven supply chain solutions and logistics services provider. As of 2024, it operates over 1,600 warehouses and 19,000 delivery stations with over 490,000 members of staff. The company drives innovation in hydrogen vehicles, green warehouses, digital and autonomous technologies, and operation optimization to achieve seamless integration of cost reduction, operational efficiency and sustainability. Innovation levers applied: –Electrical and hydrogen-powered vehicles (lever 3): JD Logistics scales up the deployment of electric logistics vehicles and explores other clean energy options, for example, operating 64 hydrogen- powered vehicle transport routes across regions such as Beijing-Tianjin-Hebei. –Green warehouse and distribution centre (lever 9): Select sites conduct holistic consideration of land and ecosystems – making use of geographic information system (GIS) overlay analysis. They also enhance energy efficiency and reduce carbon emissions through smart systems, upgraded equipment and renewables. For example, its Xi’an Asia No.1 logistics park became China’s first carbon-neutral logistics park in 2021 by installing a 100,000 square-metre (m2) rooftop solar photovoltaic (PV) and storage system, and offsetting the remaining emissions through China Certified Emission Reduction (CCER) purchases. –Digital carbon management platform (lever 12): The Supply Chain Emission Management Platform (SCEMP) was the industry’s first international certification carbon management software as a service (SaaS) platform covering International Standard Organization (ISO) 14064, ISO 14083, ISO 14068 and Smart Freight Centre Global Logistics Emissions Council (GLEC) framework. Using blockchain technology, SCEMP builds a distributed carbon ledger and enables product stock-keeping unit (SKU)-level traceability with the industry’s finest granularity at the waybill level. –Circular logistic and reverse supply chains (lever 13): JD Logistics’s implementation of full life-cycle packaging management – with a focus on “reduction, reuse and degradation” – includes key measures such as the development of new cartons, waterproof bags and tapes to reduce raw-material use, the use of reusable cooler boxes and transit boxes, and initiatives to encourage the reuse of secondary cardboard packaging and delivery with original packaging. –Last-mile and specialized delivery solutions (lever 14): The company has built a three-tier, intelligent distribution network covering provinces, cities and counties, now reaching nearly all county-level regions nationwide. Advanced technologies, including autonomous delivery vehicles, are applied. New models such as Cloud Warehouse Delivery reduce intra-city delivery from the traditional 72 hours to just half a day, allowing clients to send goods to nearby courier stations, from which JD Express personnel handle the last-mile delivery. –Multimodal rail and road transport (lever 15): The logistics hub cluster (encompassing one national hub, seven regional hubs and 23 provincial hubs) covers major economic regions in China. With dynamic scheduling optimization algorithms for intelligent coordination, it repurposes idle urban train station resources to facilitate resource use and cargo consolidation. A dedicated environmental, social and governance (ESG) product service was also launched to help clients shift long-distance orders to more efficient and sustainable rail transport. Green Logistics Innovation for Emerging Markets: Driving Competitiveness and Shared Value 14

Green Logistics Innovation for Emerging Markets Driving Competitiveness and Shared Value 2025