Amid environmental activists are raising concerns about the impact of its vast delivery network and climate change, Amazon.com, Inc. (NASDAQ:AMZN) gears up to place an order on Rivian, a startup, for 100,000 delivery vans. It is part of Amazon’s efforts to comply with carbon neutrality by the year 2040.
Increases renewable energy usage to 100%
Jeff Bezos, Chief Executive Officer of Amazon, said the company would improve renewable energy usage to 100% from the current 40% by the year 2030. The company would also fund $100 million to restore the forests and wildlands.
Delivery of Pickup vans by 2021
Rivian, the startup based in Michigan, is pleased with the largest ever order received from the e-commerce giant and plans to deliver the customized delivery vans between 2021 and 2024. The company also received $700 million from Amazon in early 2019. As part of the agreed pact, Rivian would also develop and deliver F-150, an electric pickup vehicle, to the Ford.
According to the analysts in the US, the large orders for electric vehicles would improve economies of scale for the vehicle manufacturers. It would help the utilities to know how to manage the fleet of electric cars.
The commitment from Amazon comes on the backdrop of over 4,000 employees urged the company to tackle the carbon impact and save the environment. This initiative is seen as an achievement for the workforce. However, Amazon says a lot more to do to reduce its dependence on fossil fuels and go environment-friendly completely. To meet this goal, Amazon would reduce the donations to politicians, who pull up from the climate deals.
Tech Giant – Google invests in renewable energy
Google, the tech giant, is investing in renewable energy in Denmark, Belgium, and Finland. It commits for a large chunk of renewable energy in these nations in Europe. Google’s renewable energy capacities in Finland, Sweden, Belgium, and Denmark are 255 MW, 286 MW, 92 MW, and 160 MW respectively. It’s solar, and wind energy agreements increase to 5,500 MW (up 40%) across the world. The overall investment from Google into the renewable energy fleet is over $7 billion. It would create thousands of jobs.