The need to decarbonize the global economy has become increasingly clear, as recent estimates by the Intergovernmental Panel on Climate Change have found that corporations need to substantially reduce their greenhouse gas emissions by 2030 and achieve “net zero emissions” by 2050 to avoid the worst effects of climate change. But how can they achieve that?
In a recent analysis published in the California Management Review, Associate Professor Dara O’Rourke explores how Amazon—which is recognized for leveraging its speed and innovation to facilitate growth—is decarbonizing.
“In the race against climate change, corporations are both key sources of emissions and critical to advancing climate solutions,” said O’Rourke, a faculty member in the Department of Environmental Science, Policy, and Management and faculty co-director of the Master of Climate Solutions graduate program. “While most major corporations now have “net zero carbon” pledges, we have actually seen quite limited progress in decarbonizing products and supply chains.”
According to O’Rourke, Amazon recently reported that over 680 million packages were delivered via electric vehicles in 2023 and is redesigning its delivery network to reduce the number of miles driven and the amount of packaging required. These changes, along with other efficiency improvements and lower-carbon substitutions, are what Amazon hopes will help them reach "Net Zero Carbon" by 2040.
O’Rourke served as a senior principal scientist at Amazon from 2016-2022. He suggests that the company’s experiences are relevant to other companies striving to advance decarbonization. The case study may offer lessons for managers on leveraging innovation processes for climate goals, as well as shine a light on the metrics and mechanisms that Amazon is using to support its transition.
Read the full study at the California Management Review, and watch a video of O’Rourke explaining his study below.