Jeff Bezos announced the formation of a new organization to meet the goals of the landmark Paris climate agreement 10 years early. And a new survey shows the potential benefits of doing so.

Amazon.com Inc., No. 1 in the Internet Retailer 2019 Top 1000, is getting political. In the wake of a steady drumbeat of criticism from activists and a vocal group of his own employees, the retail giant’s founder and CEO Jeff Bezos announced the formation of a new organization, the Climate Pledge, to meet the goals of the landmark Paris climate agreement 10 years early.
“We have been in the middle of the pack on this issue,” Bezos said in Washington Thursday. “We want to move to the forefront. We want to be leaders.”

In a joint press conference with Christiana Figueres, formerly the United Nation’s executive secretary for climate change, Bezos said Amazon will reach 80% renewable energy use by 2024 and 100% by 2030, up from 40% today. To help get there, Amazon has placed an order of 100,000 electric vehicles from a startup it has backed, Rivian Automotive Inc. The first Rivian vehicles will arrive in 2021.

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Bezos recruited Figueres to co-found the Climate Pledge, which calls on companies to be net carbon neutral by 2040—a decade earlier than stipulated by the Paris Climate Accords. The pair said they would hold an annual conference for companies to share best practices for reducing their climate footprint. “Swallow the alarm clock,” she said. “We are running out of time. Science tells us we have about a minute left to get the work done we need to get done.”

Amazon also announced a $100 million donation to the Nature Conservancy to fund the Right Now Climate Fund, which engages in reforestation projects to remove carbon from the atmosphere.

Bezos’s pledge came a day before more than 1,000 Amazon employees are scheduled to walk out of their offices to draw attention to the company’s inaction on climate change. The protest is part of a wider strike organized by 16-year-old climate activist Greta Thunberg ahead of next week’s United Nations Climate Action Summit.

“The global strike tomorrow is totally understandable,” Bezos said. “People are passionate about this issue. By the way, they should be passionate about this issue.”

The group organizing the employee walkout, Amazon Employees for Climate Change, has been pressuring Amazon for almost a year to reduce its dependence on fossil fuels and detail how it’s preparing to deal with business disruptions caused by climate change. A shareholder resolution calling for Bezos to unveil a comprehensive climate change proposal was rejected at Amazon’s annual meeting in May.

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In February, Amazon promised to disclose its carbon footprint by the end of the year and pledged that half its shipments would be carbon neutral by 2030, a so-called Zero Shipment project. Amazon has argued that an ecommerce model, with delivery vehicles making numerous stops in each neighborhood, is inherently more efficient than individual shoppers taking the odd trip to the store for items like a gallon of milk. Bezos added that free next-day shipping for Prime members, which the company recently rolled out, is more environmentally efficient because products can be warehoused locally, reducing travel times and bypassing the need to ship products via air.

Over the years, the retail giant has also developed wind and solar farms to power its data centers, experimented with more environmentally friendly packaging and offered ways for customers to pick a single day to receive multiple orders placed during the week.

Amazon is relatively late among tech companies to share its environmental impact. Apple has released an environmental impact report with increasing levels of detail for the last decade. Google first published a comprehensive report on its energy use in 2011.

Bezos started the press conference by reviewing the accelerating state of climate change, which he called “dire.” But he also said he was optimistic that society can invent a solution. “When invention gets involved, when people get determined, when passion comes out, when they make strong goals, you can invent your way out of any box. That’s what we humans need to do right now.”

Corporate America is getting more political

Bezos’ announcement comes at a time when corporate America is getting increasingly political, according to a Morning Consult survey of 4,200 adults conducted in August that was released on Thursday.

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53% of respondents said corporations have become more political in recent years, a significantly higher share than those who said brands have become more environmentally friendly (43%), charitable (26%) or ethical (23%).

That perception can have significant implications on a retailer’s long-term success; consumers were 16 points more likely to state that corporations are getting more culturally liberal than conservative.

That can put brands in a difficult position, given that 31% of consumers born between the mid-1990s and the early-2000s want brands to assert their influence to impact political and cultural issues. That outpaces millennials (27%), Generation X (16%) and baby boomers (13%). Those results dovetail with a May Internet Retailer/Bizrate Insights survey that found 33% of online shoppers have purchased apparel based on a company’s pro-environmental stance.

However, the potential cost of taking those types of stances may outweigh the benefits of doing so, according to the survey. 29% of consumers have stopped buying a company’s products or services because of a political action or stance it took while only 15% spent money to support a company because of its political stance.

 

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