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3 ESG Initiatives Amazon Stock Investors Should Know About

Many investors take a company's ESG initiatives into consideration before making any investments in its stock. Here are three takeaways for Amazon shareholders.

Twenty years ago, social responsibility and market-share expansion were viewed as two opposing forces. Today, investors no longer believe ESG (environmental, social and corporate governance) actions hold back company growth. In fact, some would say it actually pushes it further.

Today, the Amazon Maven presents three ESG drivers for Amazon  (AMZN) - Get Inc. Report shareholders and why they matter.

Figure 1: 3 ESG Initiatives Amazon Stock Investors Should Know About.

Figure 1: 3 ESG Initiatives Amazon Stock Investors Should Know About.

(Read more from Amazon Maven: Want to Buy Metaverse Stocks? How About Some AMZN?)

1. Financing Green Technologies

Amazon has multiple initiatives to develop and finance climate-friendly technology. Recent news shows Amazon is part of the First Movers Coalition, a partnership between the World Economic Forum, the U.S. State Department, and “forward-thinking companies.”

The coalition’s purpose is to leverage companies' purchasing power and to raise the demand for green technologies. The initial goal is to invest in green technologies for aviation, ocean shipping, steel, and trucking.

“By joining the First Movers Coalition, we are sending a clear signal that companies like Amazon are seeking long-term, low-carbon fuel solutions to help us achieve net-zero carbon by 2040,” said Amazon’s CEO, Andy Jassy.

2. Social Assistance

Amazon also has social programs to assist vulnerable communities. Amazon has committed over $130 million to address hunger and homelessness in Seattle, where the company is based. Those figures included the opening of an eight-floor shelter within Amazon’s Seattle office building for homeless families.

And let’s not forget the Future Engineer program, which aims to offer computer science classes to underserved children and young adults so they can build a career in tech. The program also includes $40,000 scholarships for 100 students per year to study computer science in college.

3. Amazon Saving the Amazon

The Seattle-based behemoth is also helping the rainforest from whence it took its name: The company has announced a $1 billion mobilization made through the Lowering Emissions by Accelerating Forest Finance (LEAF) Coalition. The money will help to protect the world’s tropical rainforests, including the Amazon.

“Emissions from tropical deforestation and degradation make up over 10% of net human-caused greenhouse gas emissions. I am proud of Amazon’s work over the past six months with the governments of Norway, the United Kingdom, and the United States, and a growing number of other leading companies, to spearhead this important initiative and mobilize $1 billion to fight tropical deforestation,” said Andy Jassy.

(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting the Amazon Maven)