Lazada shapes the future of the digital economy with its first environmental, social and governance (ESG) impact report

Lazada’s first ESG impact report commemorates its 10th anniversary, and marks its commitment to building a sustainable digital ecosystem.

Lazada releases its first Environment, Social, and Governance (ESG) Impact report, Shaping the Future of the Digital Economy for 2022. The report details the company’s efforts to leverage eCommerce as a force for good to uplift communities, champion accountable and sustainable business practices and manage its impact on the environment.

“What we have started lay the foundation of our ESG commitments in the Philippines, which contribute to the overall positive impact that we are creating as a group across the region.  I am looking forward to strengthening our collaborations with our partners and stakeholders to shape the future of a sustainable digital ecosystem in the country,” Lazada Philippines CEO Carlos Barrera said. 

“These include our Lazada x For The Women (FTW) Data Science Scholarship program where we offer data science training to promising young women who are looking to build a career in tech for example, and LazGoGreen, our initiative addressing our environmental impact,” Barrera added.

The report unveils the company’s ESG framework and its four core pillars: Empowering Communities, Future-Ready Workforce, Responsible Stewardship, and Effective Governance. It highlights many notable achievements for the company under these pillars, including:

Empowering Communities

Lazada Group created 1.1 million economic opportunities within its ecosystem of sellers, digital commerce enablers, third-party logistics partners and dedicated employees. Lazada’s commitment is to give back to societies and communities in recovery efforts and building a more resilient society. Lazada works with local stakeholders to develop programs that support women in their journeys to becoming entrepreneurs and celebrates female entrepreneurs who have overcome obstacles to grow their businesses successfully with Lazada. 

Lazada Philippines launched capacity building activities and invites entrepreneurs from across the country to participate as the company aims to boost digitization and eCommerce integration of Filipino owned small businesses. In partnership with ASEAN, Lazada pushes to globalize local Filipino goods and make them more accessible across the region. 

Future-Ready Workforce

As of August 2022, women make up 66% of Lazada Philippines’ workforce, supporting the Group’s gender and inclusion goals in the region.

In addition, since the launch of Lazada x For The Women Data Science Scholarship, 70% of the scholars have been placed in new data science roles, effecting an almost +110% increase in their average monthly earnings. The company also endeavors to develop the skillset of its workforce by implementing skill building initiatives that provide soft and functional training to employees. Lazada works in close coordination with its leaders, workers, and stakeholders to uplift their employees’ well being, and maintain a healthy, creative, and stress-free working environment.

Lazada Philippines established initiatives such as Lazada University, an exclusive education program to empower MSMEs and small business sellers, and the Lazada Learning Festival 2022, the biggest virtual learning festival in Southeast Asia to educate and engage with aspiring entrepreneurs. 

Responsible Stewardship

Lazada Group introduced a baseline carbon inventory to identify key sources of Greenhouse Gas (GHG) emission across its operations. The results from the carbon inventory exercises will serve to enhance Lazada’s decarbonization roadmap in the coming years and align with global ambitions to reduce GHG emissions. The company prioritizes forming partnerships with independent contractors with electric vehicles.

In line with this, Lazada Philippines has launched LazGoGreen, an initiative that continually reduces the environmental impact of Lazada’s packaging through efficient plastic recovery and reduction efforts mobilized across the Philippines. Lazada boosts this effort by collaborating with businesses and communities to create a network of sustainability partnerships to drive the future of plastic production and consumption. In March of 2020, 70,000 alternative packaging pouches were sold, with 35 of Lazada’s sellers fully adopting plastic alternatives. By 2020, the company launched as much as 18 plastic collection sites across the country.

Effective Governance

Lazada Group is one of the few eCommerce platforms in Southeast Asia to be certified against the ISO 27001:2013 standards, an international standard for information security that sets out a holistic approach to securing confidentiality. It is the first Southeast Asian digital commerce company with a dedicated Intellectual Property Rights (IPR) Protection Team. In March 2020, the team piloted a proactive detection and takedown of counterfeit goods, which resulted in 98% of proactive removals occurring before a transaction took place in 2021. Lazada Philippines has developed strong partnerships with DTI, DICT, and NPC to execute events and activities aimed at driving awareness on several topics concerning cyber security and online safety practices. 

This report has been prepared with reference to the Global Reporting Initiative (GRI) Standards 2021.

“Beyond being the eCommerce pioneer, we remain committed to enabling a sustainable and healthy ecosystem that connects our buyers and sellers in more meaningful ways. Our approach is to adopt an ‘ecosystem mindset’, where stronger ties with our partners and stakeholders along our value chain are key to creating a lasting, positive impact,” Barrera said.

The full FY2022 ESG Impact Report: Shaping the Future of the Digital Economy can be found here.