<\/p>\n
Although most frequently discussed in a regulatory sense, climate change and its effect on the planet is undoubtedly a private sector issue. \u00a0Businesses of all sizes participate in habits that exacerbate greenhouse gas emissions and stand to lose tremendous value in the long run if operating costs subsequently rise. \u00a0Data centers, transportation expenses, utility costs for office buildings and warehouses\u2014energy accessibility greatly shapes the outcome of a business model.<\/p>\n
Additionally, companies are incentivized to take a stand on issues of importance to their customers.\u00a0 Sixty-eight percent of Americans believe climate change is caused by human activities and forty-five percent of individuals are deeply concerned about its reverberating effects\u2014as a result companies must deliver in this area.[1]<\/a> The largest American technology companies addressed their participation in this phenomenon in a 2016 U.S. Court Briefing filed in support of the Clean Power Act.[2]<\/a>\u00a0 Through this forum and others, Amazon has signaled this as an area of perpetual focus for the company going forward.<\/p>\n Current & Future Initiatives <\/strong><\/p>\n Through its public relations arm, Amazon has clearly outlined a plan to lessen its energy consumption and production of waste.<\/p>\n Energy Consumption. <\/strong>Amazon aims to support its Amazon Web Services through 100% renewable energy sources in the short term and will be at 50 percent by the end of 2017.[3]<\/a> Amazon currently has 10 renewable energy projects in process that will generate over 2.6 million megawatt hours of energy annually when completed.[4]<\/a> \u00a0Additionally, Amazon is currently utilizing recycled energy to warm its newest buildings in Seattle by capturing the heat created by a nearby data center and piping it into its buildings.[5]<\/a><\/p>\n Packaging.\u00a0 <\/strong>As the Amazon logo has become ubiquitous on the side of packaging, the company has funded initiatives to make delivery more eco-friendly. \u00a0Through eliminating excess packaging\u2014multiple boxes inside of larger boxes\u2014Amazon cut 55,000 tons of produced waste in 2016.[6]<\/a>\u00a0 Additionally, they are moving to 100% recycled packaging and recently arranged for some suppliers to ship directly to consumers, bypassing repackaging and transportation to and from an Amazon distribution center.[7]<\/a><\/p>\n Transportation. \u00a0<\/strong>While drone delivery is intended to solve the \u201clast mile\u201d problem in the mid-term, it also could cut Amazon\u2019s and its customers greenhouse gas (GHG) emissions. \u00a0The drones are battery powered, providing a clear alternative to the current carbon emitting transportation options today.[8]<\/a>\u00a0 Additionally, Amazon can more efficiently supply a neighborhood with goods instead of each house acting independently.\u00a0 If the company is successful with wooing more customers by the convenience of drone delivery, families will travel to the store less and emit less carbon into the air.[9]<\/a><\/p>\n Ongoing Criticisms<\/strong><\/p>\n While Amazon is taking concrete steps to reduce its direct involvement in climate change, it is still far behind its industry peers.\u00a0 <\/strong>It only recently began hiring personnel for sustainability related positions.[10]<\/a>\u00a0 Further, at the 2017 Annual Shareholder Meeting the motion to include sustainability targets as part of executive compensation was voted down.[11]<\/a>\u00a0 <\/strong>Carbon Disclosure Project, a nonprofit that queries companies on annual carbon emissions data, reported that Amazon is in the minority of S&P500 companies that chose not to report in 2016.[12]<\/a> Amazon\u2019s peers (e.g., Apple, Walmart) have taken these steps to show dedication to change.\u00a0 It is hard to excuse Amazon from what seems to be the evolving industry standard.<\/p>\n Additionally, Amazon does not impose environmental standards on its marketplace suppliers.\u00a0 Therefore, although Amazon is improving its own supply chain, it may concurrently encourage the growth of companies that are not pursuing the same type of improvement in their own operations.\u00a0 While it is extremely difficult to pinpoint Amazon\u2019s culpability (or lack thereof) for the actions of third party actors on its site, it must be accounted for when reviewing the sustainability of the supply chain that has fueled Amazon\u2019s success. \u00a0Though it may not be feasible in the short term, offering incentives towards positive supply chain behavior is a powerful tool Amazon could someday wield.<\/p>\n As Amazon and ecommerce continue to change the way we purchase goods, the intersection of business and sustainability becomes more complicated.\u00a0 Can Amazon overcome the inherent friction between being environmentally conscious and supporting a business model built on frequent consumption of goods?\u00a0 If Amazon is serious about decreasing humanity\u2019s contribution to climate change, should they enforce production standards on the companies that use its marketplace?<\/p>\n Word Count: 714<\/p>\n [1]<\/a> Lydia Saad, \u201cGlobal Warming Concern at Three-Decade High in U.S.,\u201d GALLUP News<\/em> (blog), Gallup<\/em>, March 14, 2017, http:\/\/news.gallup.com\/poll\/206030\/global-warming-concern-three-decade-high.aspx?g_source=Politics&g_medium=lead&g_campaign=tiles, accessed November 2017. boom<\/p>\n [2]<\/a> \u201cBrief of Amici Curiae Amazon.com Inc., Apple Inc., Google Inc., and Microsoft Corp. in Support of Respondents,\u2019 https:\/\/www.edf.org\/sites\/default\/files\/content\/2016.04.01_major_tech_companies_amicus_brief_for_epa.pdf, accessed November 2017.<\/p>\n [3]<\/a> Amazon.com, Inc., \u201cAWS and Sustainability,\u201d https:\/\/www.amazon.com\/p\/feature\/ 9xtek3a9d9cd3wb, accessed November 2017.<\/p>\n [4]<\/a> Ibid.<\/p>\n [5]<\/a> Sanjay Bhatt, \u201cAmazon, Data Center Turn Hot Idea into Cool Technology,\u2019 The Seattle Times, <\/em>November 12, 2015, https:\/\/www.seattletimes.com\/business\/real-estate\/amazon-towers-will-be-heated-by-neighbors-excess-energy\/, accessed November 2017.<\/p>\n [6]<\/a> Amazon.com, Inc., \u201cPackaging,\u201d https:\/\/www.amazon.com\/p\/feature\/c76chxvxrraw7hj, accessed November 2017. boom<\/p>\n [7]<\/a> Matt Richtel, \u201cE-Commerce: Convenience Built on a Mountain of Cardboard,\u201d The New York <\/em>Times, February 16, 2016, https:\/\/www.nytimes.com\/2016\/02\/16\/science\/recycling-cardboard-online-shopping-environment.html, accessed November 2017.<\/p>\n [8]<\/a> Bryan Walsh, \u201cShopping by Drone Could Be Good for the Environment,\u201d December 03, 2013, Time, <\/em>http:\/\/science.time.com\/2013\/12\/03\/shopping-by-drone-could-be-good-for-the-environment\/, accessed November 2017.<\/p>\n [9]<\/a> Ibid.<\/p>\n [10]<\/a> Marc Gunther, \u201cCan Amazon\u2019s New \u2018Dream Team\u2019 fix the company\u2019s sustainability reputation?\u201d, The Guardian, <\/em>February 2, 2016,<\/em> https:\/\/www.theguardian.com\/sustainable-business\/2016\/feb\/02\/amazon-sustainability-edf-epa-best-buy-walmart-apple-microsoft-csr-child-labor, accessed November 2017.<\/p>\n [11]<\/a> Amazon.com, Inc., May 23, 2017 Proxy Statement (filed April 12, 2017), via SEC.gov, accessed November 2017.<\/p>\n [12]<\/a> Angel Gonzalez, \u201cAmazon Gets an \u2018F\u2019 from the Carbon Disclosure Project,\u201d November 1, 2016, https:\/\/www.seattletimes.com\/business\/amazon\/amazon-reluctant-to-share-carbon-emissions-data\/, accessed November 2017.<\/p>\n <\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" While Amazon is making tangible progress in its approach to sustainability, can it ever be truly environmentally conscious within its current business model?<\/p>\n","protected":false},"author":9595,"featured_media":24327,"comment_status":"open","ping_status":"closed","template":"","categories":[],"class_list":["post-24326","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","hck-taxonomy-organization-amazon","hck-taxonomy-industry-technology","hck-taxonomy-country-united-states"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/rc-tom-challenge-2017\/","yoast_head":"\n