On December 21, MSCI (Morgan Stanley Capital International, Inc. MSCI), an international authoritative index agency, announced the latest ESG rating results of Dada Group. Dada Group's annual MSCI ESG rating was upgraded to A, achieving a jump in the rating for the second consecutive year, which is also the highest rating for domestic instant retail enterprises in 2023.
MSCI is internationally recognized as one of the most authoritative and widely used ESG rating agencies, providing global investors with index trend and performance analysis tools, and its rating results have become the mainstream investment reference basis in the international capital market. According to the report, Dada Group has made further progress in environmental, social and governance (ESG) areas, with significantly higher performance than the industry average on key issues such as carbon footprint, privacy and data security, business ethics and anti-corruption.
Based on the continuous optimization of the ESG system and practical results, Dada Group's ESG rating in third-party rating agencies has continued to improve, fully reflecting the recognition and affirmation of Dada Group's long-term investment value and sustainable and high-quality development capabilities by international authorities and the capital market. In recent years, Dada Group has focused on environmental, social and governance, and fully practiced the concept of ESG.
In terms of environment, Dada Group actively explores full-link carbon reduction measures and integrates low-carbon concepts into daily operations. Since 2020, JD Daojia, its instant retail platform, has gradually implemented degradable plastic bags to improve packaging efficiency and promote green packaging, and in 2022, degradable packaging bags will cover about 70% of JD Daojia ordersIn 2022, the delivery distance of its instant delivery platform Dada Express exceeded 1.8 billion kilometers, and the proportion of electric vehicles reached almost 100%, reducing about 500,000 tons of carbon emissions for the society compared with gasoline vehicles.
In terms of society, we adhere to the concept of win-win development. JD Daojia has launched more than 400,000 full-format physical stores, cooperated with about 300 brand partners, and covered more than 2,200 counties, districts and cities through in-depth cooperation with leading retailers and brands in China to help partners seize instant retail opportunities and continue to reduce costs and increase efficiency. In 2022, there were 1 million active riders, of which more than 80% are from lower-tier towns and villages, while establishing a sound safety and security system, promoting a more comprehensive compensation and incentive system, and actively providing training and care for riders.
In terms of governance, Dada Group has continuously improved its corporate governance structure and practiced responsible business practices, and is committed to enhancing the diversity and professionalism of the Board of Directors, strengthening risk prevention and control, abiding by business ethics, and continuously improving corporate governance.
While Dada Group continues to be recognized by well-known institutions at home and abroad for its ESG practices, it will continue to strengthen its long-term strategy in the future, continue to invest in practicing social responsibility, and continue to create value for users, shareholders, partners, employees and society.