Cainiao Smart Logistics (Cainiao), the logistics arm of the Alibaba Group, said it has teamed up with Nestlé to roll out a green supply chain project across China, with the goal of reaching net zero emissions.

In a statement, Cainiao said the cooperation is an "industry-first" in achieving a full-chain sustainable supply chain management, which starts from production line to warehousing, transfer, distribution and package recycling by end consumers. 

Based on the project parameters, Cainiao will gradually implement a series of dedicated green supply chain initiatives together with Nestlé, such as customized packaging; smart recycled shipping boxes; smart inventory allocation; reducing the use of unnecessary packaging materials brought about by secondary packaging; the establishment of recycling facilities at over 30,000 Cainiao Post Stations nationwide; and facilitating the recycling of Nestlé‘s Sense Café packages.

“By marrying technology innovation with logistics, we strive to foster a greener and more sustainable logistics ecosystem, and to become the partner of choice for leading consumer brands globally as they adopt green supply chain practices,” said Yong Shuai, head of Cainiao's Green Supply Chain.

Net zero goal by 2050

Nestlé is one of the early pioneers that launched green initiatives in China. As early as 2018, Nestlé promised to achieve 100% recyclable or reusable packaging materials by 2025. At the end of last year, Nestlé is taking measures to achieve net zero by 2050 and formulated a detailed roadmap.

“We’ve anticipated new levels of consumerism in the marketplace, which in turn transformed our new business economics. We therefore needed to preempt the transition towards a greener supply chain ... Teaming-up with Cainiao has continued to deliver the desired dividends in terms of our consumers, customers & our brands, whilst actively pressing towards our carbon reduction strategies,” said Tony Domingo (Dong Ming), SVP for Nestlé GCR Supply Chain & Procurement.