Environmental Sustainability Within Private Companies
Overall, legislative efforts made by governments in the battle against climate change have been considerable. Responses by e-commerce giants, Amazon and Alibaba, have been sufficiently proficient. Calculation and reporting of the companies’ environmental impact though need improvement.
The EU Green Deal and China’s 14th five-year plan have framed multinational private entities' sustainable development across Europe, China, and the U.S., revealing their inefficiencies. Following the Green Deal, Amazon began working toward net-zero emissions and 100% renewable energy targets. Alibaba commits to China's 14th five-year plan of net-zero emission targets through developments in artificial intelligence, and their transition to renewable energy power and more sustainable suppliers. The supply chains of private entities will determine the success of the legislative agreements that work to meet the United Nations´ Sustainable Development Goals.
In regards to improving the environmental sustainability in the private sector, China has shown determination for its future. The 14th five-year plan places sustainable development as one of the main objectives for the Asian superpower. Aligned with the UN’s famous SDGs, it pursues carbon neutrality through binding targets. Some examples include decreasing energy and carbon intensity, improving frequency of good air and water quality, and reforestation.
The Chinese e-commerce company, Alibaba, commits to complying with the aforementioned legislation. The 2021 Carbon Neutrality Report clearly makes an assessment of the situation and establishes objectives. Acknowledgement is made that emissions from upstream and downstream of Alibaba’s value chain are much greater than those coming from directly owned or controlled sources. Alibaba itself acknowledges that calculations of indirect greenhouse gas emissions may not be totally precise.
Alibaba sets its sights on achieving carbon neutrality in its operations by 2030 yet acknowledges that its carbon emissions are expected to rise in the short term due to business growth. Action is planned to be taken in various ways. Standing out is the electrification and digitalisation of operations: Alibaba aims to fully transition to usage of electric vehicles and is exploring AI to improve upon transportation efficiency. To reduce indirect emissions, Alibaba plans to increment the use of green energy and prioritise more sustainable suppliers.
In response to the European Green Deal, Amazon released a 2021 statement on their continuing efforts to reach net-zero carbon emissions by 2040 and reduce waste under their supply chain’s Climate Pledge. To lower packaging’s environmental waste, Amazon has initiated: the Ships in Product Packaging Program, using only the manufacturer's frustration-free packaging for over 400,000 products, and Amazon’s Packaging Support and Supplier Network, to help third-party suppliers obtain frustration-free packaging certifications. Amazon continues to only consider Amazon-branded products, about 1% of online sales, when calculating the company’s manufacturing and transportation carbon emissions. “Shipment Zero,” proposed in response to the Green Deal, aimed for 50% net-zero carbon shipments by 2030 with the use of electric vehicles and bicycles, but recently eliminated the goal to “remain focused on the Climate Pledge”. Amazon Second Chance and other efforts are allowing consumers to return few eligible products for trade-in, repair, or recycling to reduce consumer waste, but this is not yet available in every European country.
Amazon mentions decreases in their energy and water consumption in the 2022 Amazon Sustainability Report, the same ambition is not seen in decreasing mass consumerism. Personalised advertisements and influencers have increased consumerist patterns at alarming rates. Amazon profits from the mass consumption of single-use clothing and items. Greenwashing in the campaign “Amazon Aware”: 20 out of 103 products are produced over 5000 miles away and shipped in single-use plastic, contrary to its promises. Amazon has been sued after being accused of operating an illegal monopoly, raising prices and degrading service for shoppers and vendors while stifling competition.
Overall, legislative efforts made by governments in the battle against climate change have been considerable. The European Green Deal and the Chinese 14th five-year plan share a common target of reduction in GHG emissions and are legally binding in character. Responses to legislation by e-commerce giants, Amazon and Alibaba, have been sufficiently proficient. Intentions to comply have been clear, however, there is a serious lack in the calculation and reporting of the companies’ direct and indirect environmental impact.
