Second-Party Opinion Download

Sustainalytics is of the opinion that the Alibaba Group Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – (i) Green Buildings, (ii) Energy Efficiency, (iii) COVID-19 Crisis Response, (iv) Renewable Energy, and (v) Circular Economy and Design – are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that the eligible categories will provide environmental and social benefits such as improved energy efficiency and reduced GHG emissions of the Company's operations and relevant infrastructure while advancing the UN Sustainable Development Goals ("SDGs"), specifically SDGs 3, 7, 8, 9, 11 and 12.

PROJECT EVALUATION/SELECTION

Alibaba Group's Sustainable Finance Committee (the "Committee"), composed of members from the Corporate Social Responsibility, Corporate Finance, and Investor Relations teams, will screen and select projects compliant with the eligibility criteria as required and at least annually. The Committee is chaired by the Deputy Chief Financial Officer. Sustainalytics considers the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Alibaba Group will manage net proceeds from the issuance of each Sustainable Finance Transaction using an internal register. The Corporate Finance team will be in charge of tracking and allocating net proceeds, and classifying Eligible Projects to either the Green Project Portfolio or the Social Project Portfolio. Pending allocation, net proceeds will be temporarily invested in cash or cash equivalents or short-term investments such as short-term liquid treasury bonds. This process is in line with market practice.

REPORTING

Alibaba Group intends to report on the allocation of net proceeds on its website on an annual basis until full allocation. Allocation reporting will include information such as the amount allocated to each Eligible Project; the pending amount yet to be allocated; the percentage allocation in the Green Project Portfolio and Social Project Portfolio; and the percentage allocation in Eligible Projects aligned with each SDG, among others. In addition, Alibaba Group is committed to reporting on relevant impact metrics. Sustainalytics views Alibaba Group's allocation and impact reporting as aligned with market practice.