Etsy wants to make shipping operations carbon neutral
Etsy (ETSY) appears to be betting that investors will prefer it investing in safeguarding its reputation rather than driving revenue growth. In 2016, Etsy committed to powering its operations with 100% renewable electricity by 2020.
Not only has the company reported that it is on track to meet that goal, but it has also unveiled a new initiative to offset 100% of carbon emissions generated by its shipping operations. The new initiative involves Etsy investing in renewable energy production and forest conservation every time a customer purchases from its marketplace. Etsy generated $200 million in revenue and $41.3 million in profit in the fourth quarter, while Amazon (AMZN) and Alibaba (BABA) reported profits of $3.0 billion and $4.8 billion.
Safeguarding its brand image and future
As the public becomes more aware of climate change issues, corporations are investing in sustainability projects, both for the sake of their brand reputation and to safeguard their future. For example, Bloomberg reported in January that Walt Disney (DIS) stated in an annual climate change report that rising temperatures could impact its ability to attract theme park visitors. Also, Bank of America (BAC) worries that frequent floods could cause homeowners to default on mortgage repayments.
Amazon has not been left behind in efforts to curb carbon output. Last month, the company announced an initiative to halve its shipping operations’ carbon emissions by 2030.