The second most valuable corporations of the world, Amazon has been setting a great example of stability under the direction of CEO Jeff Bezos. The persistent chase of the corporation’s objectives has brought in favorable results, but the firm has failed as a corporate leader in dealing with one of the biggest societal challenges, that is, climate change.
Sue Reid, vice president of climate and energy for Ceres – a non-profit that advocates investors and companies to tackle sustainability issues – said, “Amazon has not been a leader when it comes to disclosing its carbon footprint.”
However, the e-commerce company has finally taken a better path. Recently, Amazon announced its “Shipment Zero” goal, aiming to have 50 per cent of total deliveries reach net zero carbon emissions by 2030. As it is also tracking its carbon footprint, the company is expected to release a carbon report for the first time this year.
Several major corporations have been commonly involved in such type of climate change disclosure, but the Bezos-owned company has been averting the idea. As per the reports, it will resort to its own way with the climate report.
While other significant companies rely on the Carbon Disclosure Project (CDP) for releasing their findings, Amazon is working on its own approach to track and report carbon emissions. Besides, it will also not reveal the plans to achieve the net zero status or report its carbon emissions beyond its blog post.
Director of the Center for Environmental Politics at the University of Washington, Aseem Prakash said that the firm is yet to reveal its carbon emission report because there has been very minimal pressure from both investors and customers. The change has happened because Amazon is facing pressure from both its investors as well as the employees.
Critics and experts have argued that Amazon’s self-reported carbon emission report won’t measure up. Prakash said that being a reputed company Amazon could have joined CDP, as it is “a verified” and a “structured system”.
More than 7,000 companies had disclosed their carbon footprints with the CDP, last year. According to the CPD website, these reporting companies represented over 50 per cent of the total global market capitalization.
Since 2010, Amazon has been receiving an ‘F’ grade for non-participation. While the firm has finally decided to end the rigidness regarding its social responsibility, there still remains ample of suspicion over its decision. Will Amazon’s self-tracked carbon emission report prove to be reliable?
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