Amazon (AMZN - Free Report) has placed a purchase order for 100,000 electric delivery trucks with Rivian, an automaker and automotive technology company, which is a testament to its relentless efforts to ramp up to e-commerce and retail delivery services.
Notably, the ordered trucks are expected to commence deployment by 2021 and likely to be over by 2024, which in turn will strengthen its delivery system.
These emission-free vehicles will reduce carbon footprint, which will help Amazon’s efforts to save the environment by leveraging renewable energy.
Growing Carbon Neutrality Endeavors
The latest move bodes well for the company’s goal toward being carbon neutral by 2040. In terms of its retail business, 40% of Amazon’s delivery fleet runs on renewable energy. It strives to covert its entire fleet to renewable energy by 2030.
Apart from retail segment, the company’s cloud computing platform, Amazon Web Services (AWS), is also focusing on green energy. Recently, Amazon announced three new renewable energy projects in Ireland, Sweden and the United States to power AWS’ global infrastructure globally.
Notably, AWS already has nine clean energy projects. In fact, these clean energy projects are anticipated to produce a total of more than 2.7 million megawatt hours of electricity, sufficient to power around 262,000 households in the United States.
We believe Amazon’s commitment to environmental, social and governance (ESG) practices is expected to bolster investor confidence and increase loyalty.
Carbon Neutrality Gaining Steam
Amazon 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, Amazon can generate healthy returns from strengthening solar and wind investments as there are several associated tax incentives.
Apart from Amazon, tech giants like Alphabet (GOOGL - Free Report) , Microsoft (MSFT - Free Report) and Apple (AAPL - Free Report) are also taking initiatives to adopt alternative energy sources to lower overall carbon emissions and cut energy bills substantially.
Google’s aggressive three-fold strategy which includes energy efficiency, renewable energy procurement, and carbon offsets, makes it fully committed to carbon neutrality.
Further, Microsoft inked two power purchase agreements with EDP Renewables North America LLC to work on a wind energy project based out of Paulding County, OH.
Meanwhile, Apple and Rio Tinto announced that they are looking for ways to develop a carbon-free project soon.
Nevertheless, Amazon's recent deal is expected to provide it a boost in this race to carbon neutral.
Currently, Amazon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.6% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>