#M4BW Amazon Commits to 100% renewable energy, 100,000 electric vans to fight climate change

Our focus on Marketing for a Better World (#M4BW) continues with a look at a recent announcement by Amazon. Amazon promises to “meet the terms of the Paris climate agreement 10 years ahead of schedule.” Its recent announcement comes after some pressure from employees (Amazon Employees for Climate Justice).

This article provides an opportunity to discuss how creating shared value might actually create value. You could ask your students why Amazon is doing this? Is it good for shareholders? Why or why not? The answer is not clear, but students may not recognize that actions like this might make it easier for Amazon to recruit top talent. Many young people are concerned about the environment and want to work someplace that is doing something about it. This might also enhance Amazon’s brand and reputation among consumers. Finally, it may lower operating costs — as the initial cost of an electric van may be offset by lower operating costs (electric vehicles typically cost less to operate as compared to gas-power vehicles).

This issue might be discussed — with different emphasis — in Chapter 3 (Amazon is featured in our chapter-opening case), Chapter 11 (logistics), Chapter 12 (retailing) or in Bonus Chapter 2 (Marketing’s Link with Other Functional Areas — including human resource management).