Connect with us

Published

on

Alibaba Stock Climbs as Earnings Beat and Net-Zero Goals Win Over Investors

Alibaba Group Holding Ltd. has seen its stock price strengthen, boosted by stronger-than-expected earnings and renewed investor confidence in its long-term strategy. The company’s environmental, social, and governance (ESG) efforts are also attracting investors. Its focus on net-zero emissions adds to its appeal. Investors now consider sustainability as important as profitability.

Let’s examine the Chinese tech giant’s recent stock and what causes it, and the company’s progress in its net-zero pledge.

Earnings Power: Alibaba Surprises Markets With Strong Q2 Growth

For the quarter ended June 30, 2025, Alibaba reported revenue of RMB 247.65 billion (US $34.57 billion), up 2% year-over-year, or +10% on a like-for-like basis excluding divested units.

Net income attributable to ordinary shareholders soared 76% to RMB 43.12 billion (US $6.02 billion). It is boosted by investment gains and the divestiture of its Trendyol business. Non-GAAP net income, which excludes one-off items, fell 18% to RMB 33.51 billion (US $4.68 billion).

Adjusted earnings, for underlying business performance, declined 14% to RMB 38.84 billion (US $5.42 billion). Meanwhile, income from operations dropped 3% to RMB 34.99 billion (US $4.88 billion). Operating margin slipped slightly from 15% to 14%.

Alibaba q2 financial results
Source: Alibaba

Cloud and Consumption Drive Growth

Two segments stood out. Cloud Intelligence Group revenue grew 26% YoY to RMB 33.40 billion (US $4.66 billion), with adjusted earnings rising 26% to RMB 2.95 billion (US $412 million). For the eighth consecutive quarter, AI-related product revenue saw triple-digit growth.

Alibaba China Commerce Group—which bundles Taobao, Tmall, Cainiao logistics, and Instant Commerce—posted a 10% YoY revenue gain (~RMB 140.07 billion / US $19.55 billion). This is driven by a 12% rise in quick-commerce revenue to RMB 14.78 billion (US $2.06 billion) and a 10% increase in customer management fees. Its adjusted earnings decreased 21%, reflecting investment in Instant Commerce and technology.

International commerce (AIDC) grew 19% to RMB 34.74 billion (US $4.85 billion), and losses narrowed significantly from RMB 3.71 billion to just RMB 59 million.

AI Chip Strategy

To strengthen its competitive edge in AI, Alibaba has doubled down on its in-house chip design unit, T-Head. The company recently launched its new AI inference chips. These chips aim to boost performance for big language models and cloud AI tasks. These chips help cut reliance on foreign semiconductors. They also boost energy efficiency in Alibaba Cloud’s data centers.

Alibaba is combining custom AI chips with its cloud services. This move makes it a leader in technology and sustainability. More efficient chips can reduce power use in data-heavy tasks.

Market Response and Investor Sentiment

The earnings beat translated into stronger market sentiment. Alibaba’s stock, traded on the Hong Kong Stock Exchange (9988) and the New York Stock Exchange (BABA), jumped nearly 8% in August 2025. This rise outperformed many other Chinese tech companies.

Alibaba stock

The company’s market cap is now over US$190 billion. This increase shows that investors are more confident now. This comes after they faced regulatory pressure and slower growth in China’s e-commerce sector.

Analysts say Alibaba’s diversification in international e-commerce, logistics, and cloud computing helps it handle economic uncertainty. Its global platforms, like Lazada and AliExpress, saw double-digit order growth. This shows their strength beyond the home market.

From E-Commerce Giant to Green Pioneer: Alibaba’s Net-Zero Drive

Alibaba has also leaned heavily into sustainability. It has set ambitious climate goals that align with China’s 2060 carbon neutrality pledge. In 2021, the company committed to achieving carbon neutrality by 2030 for its own operations (Scope 1 and 2 emissions).

Alibaba carbon emissions scope 1, 2, 3
Source: Alibaba 2024 ESG Report

More notably, it promised to cut Scope 3 emissions, which make up most of its footprint, by 1.5 gigatons of CO2e by 2035. This goal applies to its merchants, customers, and partners.

The company has already reported progress. In 2024, Alibaba cut its operational emissions by 12% compared to the previous year. This was helped by using more renewable energy. More than 50% of its data center energy is now sourced from renewable power, including wind and solar.

Alibaba emissions reduction 2024
Source: Alibaba 2024 ESG Report

Key sustainability initiatives include:

  • Green Cloud Infrastructure:

    Alibaba Cloud has launched energy-efficient data centers. Some of these facilities have a PUE (power usage effectiveness) ratio as low as 1.09. This is one of the lowest in the industry. This enables 9.88 Mt CO₂e emission reductions for customers.

  • Circular Economy Projects:

    Through its logistics arm, Cainiao, the company recycled 1.5 billion packaging materials in 2024, cutting emissions and reducing plastic waste. Taobao/Tmall greening tools helped consumers cut over 10 Mt CO₂e.

  • Sustainable Finance:

    In 2023, Alibaba issued US$1 billion in sustainability-linked bonds. These bonds are linked to the company’s goals for renewable energy use and cutting emissions.

Concrete Climate Action: Alibaba’s Green Projects in Motion

Alibaba has made visible progress in aligning business operations with ESG priorities. The company has cut its emissions intensity in recent years. This change comes from using more renewable energy and low-carbon technologies.

Alibaba Cloud uses advanced cooling systems and clean energy to cut energy use in its big data centers. Cainiao is testing smart warehouses at its logistics hubs. These warehouses use renewable energy systems. This helps cut costs and lower emissions.

The company also introduced “green shopping” options on Taobao and Tmall, nudging consumers toward more sustainable products. This reflects an effort to influence consumer behavior as much as internal operations.

Alibaba is boosting transparency in ESG reporting. This is becoming more important for international investors. Sustainability reports now include detailed carbon accounting, energy usage, and progress toward milestones.

Roadblocks Ahead: Tackling Scope 3 and Renewable Gaps

While the company’s climate commitments are ambitious, execution remains complex. Scope 3 emissions—largely tied to suppliers, logistics, and consumer use—account for over 95% of Alibaba’s total carbon footprint. Coordinating across such a vast ecosystem is a significant challenge.

Eight major emissions reduction approaches for Scope 3+ Alibaba
Source: Alibaba 2024 ESG Report

Moreover, China’s slower rollout of renewable energy in certain regions poses risks for meeting 2030 neutrality targets. Industry watchers say the company must speed up investment in green projects at home and abroad to stay on course.

Why Investors Care About Alibaba’s ESG

Alibaba’s financial performance is a major attraction for investors. However, ESG factors are becoming more important, too. Global institutional investors, especially in Europe and North America, are adding sustainability to their portfolio choices.

There are several reasons why investors are paying attention:

  • Resilience: Companies with clear sustainability roadmaps are seen as better prepared for regulatory shifts and market transitions.

  • Market Demand: Consumer preference for greener products aligns with Alibaba’s efforts to feature sustainable goods.

  • Global Standards: Compliance with ESG reporting makes Alibaba more accessible to foreign funds that prioritize sustainability metrics.

Outlook: Blending Growth and Sustainability

Looking ahead, Alibaba’s dual narrative of financial resilience and ESG progress could be a decisive factor for investors. Analysts expect the company’s revenue to grow by 7–8% each year until 2026. This growth will be driven by e-commerce recovery, cloud expansion, and international efforts.

Alibaba’s stock gains reflect more than a short-term earnings rebound. They underscore the company’s broader evolution into a diversified, disciplined, and sustainability-driven enterprise.

The company is showing strong financial results. It focuses on efficiency and is making real progress toward net-zero. This positions the company as a tech leader and a responsible corporate actor in a changing low-carbon economy.

The post Alibaba Stock Climbs as Earnings Beat and Net-Zero Goals Win Over Investors appeared first on Carbon Credits.

Continue Reading

Carbon Footprint

Designing an Insetting Program: A Step-by-Step Playbook for Procurement

Published

on

Insetting program design starts with your supplier map. The carbon claim comes much later.

Consider a coffee procurement team that funds a farm intervention before checking its sourcing data. The supplier aggregates coffee lots from several regions. The buyer lacks farm-level traceability. Another purchaser expects to report the same outcome. A more attractive project brochure solves none of these problems.

If the distinction between a value-chain intervention and a purchased credit is still open, read CCC’s Insetting vs Offsetting guide before you set the brief.

Insetting program design begins with the purchasing relationship and works outward. You need to decide 1) where an intervention belongs, 2) what business problem it addresses, 3) who pays for it, 4) how results will be measured, and 5) what the evidence will let you say about them. This five-step playbook turns that sequence into a procurement plan.

Step 1: Insetting program design starts with supplier mapping

Start with the commodities that matter most to your Scope 3 inventory and sourcing continuity. Ask finance for spend by supplier, sustainability for the emissions baseline, and category managers for origin and volume records. Then identify which suppliers can trace material to a jurisdiction, sourcing region, producer group, or individual land-management unit.

The level of traceability affects what you can account for. Under the GHG Protocol Land Sector and Removals Standard, the spatial boundary for purchased land-based products depends on the traceability associated with each volume. Farm-specific factors or removals require physical traceability through an acceptable chain-of-custody model. A contract with a tier-one trader, by itself, does not establish a link to the farms behind its deliveries.[1]

Build a first-pass table with five columns: commodity and annual volume; supplier and origin; current traceability level; land-use and production risks; and the business owner who can change the purchasing terms. Mark missing data plainly. A blank cell is cheaper to fix before a program starts than after a claim is drafted.

If your company sets an SBTi Forest, Land and Agriculture target (FLAG), keep its land-related target boundary separate from energy and industry emissions. The current FLAG guidance also requires relevant companies to assess primary deforestation-linked commodities in their value chains.[2]

Step 2: Choose a commodity and jurisdiction for a pilot

Select one supply corridor where the sourcing connection can be established and procurement has a reason to stay. A useful pilot has repeat purchases, suppliers willing to share records, an intervention matched to a diagnosed problem, and a defined plan to measure the result. Carbon potential alone is a poor selection rule if the supplier cannot deliver the crop your business needs.

Compare candidate regions on land-use risk, supplier concentration, local rights and tenure, the availability of baseline data, and exposure to drought, erosion, or forest conversion. Check the relevant legal requirements separately. A nature project does not satisfy a due-diligence obligation merely because it has a carbon method attached.

Consider a coffee buyer sourcing from two districts. In the first, producer-group records identify the farms, while recent dry seasons have increased rejected green coffee lots. In the second, deliveries pass through several intermediaries and farm origins are unknown. Pilot shade management in the first district, with local agronomic advice and quality checks built into the plan. The buyer can trace purchases there and test the intervention against a defined sourcing problem.

Use a short decision memo to record why the selected corridor beats the alternatives, what remains uncertain, and what would stop the pilot. That memo is the first control against a project drifting toward whatever happens to photograph well.

Step 3: Design the supplier engagement and commercial model

The intervention needs an owner on each side of the contract. Decide who supplies planting material or training, who maintains the practice, who bears the cost if a harvest disappoints, and how long the buyer expects to purchase from participating suppliers. Where smallholders participate, budget cash flow and technical support for practices that offer a later return.

Put these terms in a supplier agreement or pilot addendum. It should cover eligible farms and volumes, consent to data collection, access for monitoring, any land or carbon rights that matter, benefit sharing, and what happens if the purchasing relationship ends. Ask local counsel and producer representatives to review the arrangement. The Accountability Framework is a useful reference for supply-chain work involving forests, ecosystems, and human rights.[3]

Avoid assigning an automatic carbon benefit to the buyer. The contract should say which party has the right to report each outcome, how overlapping claims will be checked, and how any issued credits will be handled. A reduction reported in a buyer’s inventory cannot simply be sold for someone else’s offset claim without an accounting review. SBTi FLAG guidance excludes purchased credits used as offsets from near-term FLAG target achievement.[2]

Set commercial measures beside environmental ones: delivered volume, rejection rate, supplier retention, and procurement cost. They tell you whether the program works as a supply-chain investment, even if carbon accounting takes longer to resolve.

Step 4: Build monitoring, reporting, and verification before rollout

Agree on the baseline and data flow before paying for a full rollout. Identify the land units or sourcing regions in scope, the practices that change, the records suppliers already keep, and the additional measurements the program requires. Decide which data can come from field visits, transaction records, or remote sensing, and who checks each source.

For carbon, separate three questions. Did the practice happen? Did emissions or removals change under an applicable method? Can the buyer attribute a defensible share to its purchased goods without double counting? The GHG Protocol’s 2026 guidance includes dedicated chapters on spatial boundaries, data and methods, evaluating actions, credited outcomes, and assurance.[1] These are distinct jobs. A photograph of a planted tree answers only part of the first.

CCC’s MRV and Additionality article explains the separate evidence questions a project reviewer will ask.

Create an evidence file for every reporting period: dated supplier and farm records, purchase volumes, methods and emission factors, uncertainty, quality checks, and changes from the baseline. Specify who can challenge the data and how corrections are recorded. If a project also seeks credit certification, keep project accounting and corporate inventory accounting separate. The GHG Protocol says its land standard focuses on entity-level inventories and does not set the rules for credit certification.[4]

Start with the minimum viable measurement design that can survive review. Add complexity when the pilot tells you which data actually changes a decision.

Step 5: Decide what can be reported and claimed

Insetting program design needs reporting rules before the marketing copy. Procurement, sustainability, finance, and legal should agree on four distinct outputs: operational performance; observed land or nature outcomes; inventory effects, if the accounting criteria are met; and any separately issued credits. One dashboard can display them, but they should not share a single unqualified headline.

SBTi FLAG guidance allows certain land-based removals within a company’s operations or supply chain to contribute to FLAG pathways, subject to criteria including permanence, traceability, data quality, and allocation. It does not allow purchased offsets to meet near-term FLAG targets.[2] Eligibility therefore depends on evidence and the applicable target rules, not on calling an activity “insetting.”

Draft a claims register. For each proposed sentence, record the period, boundary, data owner, calculation method, reviewer, and whether the result is measured, estimated, or still a goal. If the evidence supports only “we funded a pilot with 200 farms,” say that. Do not turn a funding fact into a verified emissions reduction.

What good looks like by year three

Treat year three as a review point, not a promised payback date. A mature pilot should have mapped participating supply volumes, a stable supplier agreement, a repeatable data collection process, and a comparison of commercial and environmental results against the baseline. It should also have a documented answer for outcomes that cannot be included in the buyer’s inventory.

Scale only where the pilot improves a sourcing decision and the evidence can follow the product. If neither condition holds, redesign the intervention or change the corridor. A disciplined program can conclude that a site is unsuitable. That is useful procurement intelligence.

Discuss your insetting program with CCC

Carbon Credit Capital designs nature-based supply chain investments around sourcing needs and measurable sustainability outcomes. Schedule a consultation with our carbon and sustainability experts to map your tier-one supplier network, FLAG exposure, and first pilot decision.

Sources

[1] GHG Protocol, Land Sector and Removals Standard, version 1.1, and companion Guidance, June 2026: https://ghgprotocol.org/land-sector-and-removals-standard ; https://ghgprotocol.org/land-sector-and-removals-guidance

[2] Science Based Targets initiative, Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, especially pp. 16–17, 37, and 41: https://sciencebasedtargets.org/resources/files/SBTiFLAGGuidance.pdf

[3] Accountability Framework initiative, Accountability Framework and guidance for companies: https://accountability-framework.org/

[4] GHG Protocol, Frequently Asked Questions: Land Sector and Removals Standard, questions 10 and 18: https://ghgprotocol.org/blog/frequently-asked-questions-land-sector-and-removals-lsr-standard

Continue Reading

Carbon Footprint

The Strategic Case for Nature-Based Carbon Investments

Published

on

Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.

1. Define the sourcing problem before choosing a project

Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.

This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.

CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.

2. Develop nature-based carbon investments around the actual supply chain

The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?

Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.

Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.

The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.

3. Compare the proposal with other ways to protect supply

WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.

The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.

The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.

The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.

4. Establish what the carbon outcome could count toward

Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?

Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.

SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.

For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.

Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.

5. Build a financial case that survives weaker assumptions

Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.

Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.

Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.

A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.

6. Fund a pilot with a clear expansion decision

Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.

Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.

Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.

This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.

Discuss a sourcing opportunity with CCC

Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.

Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.

Sources

  1. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
  2. World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
  3. Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
  4. United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
Continue Reading

Carbon Footprint

How to buy plastic credits, and what to check before you do

Published

on

A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.

Continue Reading
Advertisement