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2023-06-07

Pressure is on to become carbon neutral

2.6 billion online shoppers are driving the growing environmental impact of ecommerce


- A growing number of commerce businesses are implementing carbon offset programmes to lessen their carbon footprint. Here, carbon emissions from a company's operations are calculated, and funds are subsequently invested in initiatives like reforestation or renewable energy projects, that either reduce or offset those emissions. Research by the Climate Neutral Network predicts that the voluntary carbon market will increase from $300m in 2005 to $50b by 2030.


- Carbon-neutral shipping and delivery becomes more widespread and plays an important part in a company's carbon footprint. Many businesses are implementing carbon-neutral shipping methods to remedy this, like electric vehicles or shipping carbon offset programmes. For instance, Shopify has started an initiative to offset the carbon emissions of all its shipments, while Amazon has promised to make all its shipping carbon neutral by 2040.


- The practice of tracking and reporting carbon emissions is spreading: to monitor their progress towards carbon neutrality, several ecommerce businesses measure and publish their carbon emissions. This enables them to establish emission reduction goals and identify places where emissions can be reduced. For instance, in 2020 Walmart said that it intended to become an emission-free business by 2040. As part of this endeavour, Walmart will measure and publish its carbon emissions.


- Customers want items and practices that are carbon-neutral: demand for carbon-neutral goods and practices is increasing along with consumer awareness of climate change. 69% of consumers stated they are more likely to buy from a firm with a good environmental track record, and 73% of consumers expect businesses to lessen their carbon footprint. Companies that conduct business online can draw in and keep clients that care about the environment by using carbon-neutral practices, proven by 66% of consumers willing to pay a premium for sustainable products.


- Sustainable technology innovation is being fueled by carbon neutrality with commerce businesses promoting innovation in sustainable technology like renewable energy, electric vehicles, and eco-friendly packaging as they work to lessen their carbon impact. This then stimulates economic growth and establishes new commercial prospects. According to a projection by the International Renewable Energy Agency, global employment in the renewable energy sector might reach 28 million people by 2050.


- Overall, as businesses work to lessen their environmental effects and satisfy consumer demand for sustainable products and practices, carbon neutrality is altering the face of ecommerce. Businesses that embrace carbon-neutral practices can draw and keep customers who care about the environment. Carbon offset programmes, carbon-neutral shipping, and tracing and reporting carbon emissions are becoming more prevalent. In the years to come, we anticipate even more innovation in sustainable commerce, as demand for sustainable goods and practices increases.