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Amazon Invests in 5 Companies to Focus on Carbon Neutrality

Amazon AMZN is leaving no stone unturned to achieve carbon neutrality goals. This is evident from its continuous investments in renewable energy projects.

Recently, Amazon invested in five companies namely, the recycling startup, Redwood Materials, CarbonCure Technologies, climate technology company Pachama, electric automaker Rivian and Turntide Technologies.

However, the amount of investment has not yet been disclosed yet. Reportedly, Redwood Materials will help Amazon recycle lithium-ion batteries from its electric vehicles and e-waste from other parts of the latter’s businesses, as well as reuse their components.

These announcements are in line with Amazon’s plan of investing $2 billion fund in the development of environment-friendly technologies and services.

It has been shifting focus from fossil fuels to clean energy for quite some time now. The shift to clean energy sources is anticipated to reduce costs in the near term, which is a major positive. Additionally, the company can generate healthy returns from strengthening solar and wind investments, as there are several associated tax incentives.

Amazon.com, Inc. Price and Consensus

Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote

Amazon’s Stance

Amazon aims at utilizing 80% and 100% renewable energy by 2024 and 2030, respectively. It is also aiming to reach net zero carbon by 2040.

Amazon revealed that it could reach 100% renewable energy by 2025, five years ahead of schedule.

Notably, the latest investments reflect Amazon’s Climate Pledge commitment.

Carbon Neutrality Gaining Steam

In addition to Amazon, tech giants like Alphabet GOOGL, Microsoft MSFT and Apple AAPL are also taking initiatives to adopt alternative energy sources for lowering overall carbon emissions and cutting energy bills substantially.

Google’s aggressive three-fold strategy — which includes energy efficiency, renewable energy procurement and carbon offsets — is a testament to its commitment of carbon neutrality.

Further, Microsoft is gathering steam to become carbon negative by 2030. Its two power purchase agreements with EDP Renewables North America LLC to work on a wind energy project based out of Paulding County, OH remain noteworthy.

Meanwhile, Apple — whose global corporate operations are already carbon neutral — has recently committed to become 100% carbon neutral across the entire business, manufacturing supply chain and product life cycle by 2030.

Nevertheless, Amazon’s strengthening carbon neutrality initiatives remain noteworthy. It is constantly infusing resources into renewable energy projects in a bid to fuel its carbon neutrality drive. Moreover, the company’s rapidly growing number of renewable energy projects on a worldwide basis and improving efforts to expand the delivery fleet of electric vehicles are major positives.

Moreover, the company’s purchase order for 100,000 electric delivery trucks from Rivian remains a major positive. These emission-free vehicles will reduce carbon footprint further.

All these strong endeavors are expected to keep its renewable energy game a step ahead of peers.

Zacks Rank

Currently, Amazon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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