A sustainability analysis of globally listed e-commerce players
Some e-commerce giants have decent sustainability credentials, while others lag behind.
Our gradual shift towards online shopping has been pushed into overdrive during the COVID-19 pandemic. In this analysis we look at the big globally listed e-commerce players to measure their sustainable impact.
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E-commerce companies a mixed bag when it comes to sustainability.
The gradual consumer shift towards online shopping has been pushed into overdrive during the COVID-19 pandemic. Driven by convenience and often a necessity, consumers’ desire to shop online has had profound effects on e-commerce retailers as well as their delivery partners. Even local postal services have been affected, processing more volume than traditionally seen during Christmas. In this analysis we look at the big globally listed e-commerce players to measure their sustainable impact.
Five of the eight companies analysed scored above the Sustainable Platform database average (over 17,000+ companies listed globally), with a group average score of 45. The leader in the group is Australian company Kogan.com Ltd, with an SDG score of 65.
Following Kogan is a tech and SaaS e-commerce company BigCommerce Holdings Inc with an SDG score of 60. Just behind is Chinese e-commerce company JD.com Inc (formerly 360buy), with an SDG score of 58. Just above the Sustainable Platform database average, sits brick and mortar and e-commerce company Suning.com Co Ltd, with an SDG score of 52.
Following this is Chinese juggernaut Alibaba with an SDG score of 51. It’s worth noting that Alibaba owns and operates a diverse portfolio of companies around the world in numerous business sectors, not only e-commerce.
Of the companies below the Sustainable Platform database average, Canadian multinational Shopify is next with an SDG Score of 42, followed by eBay Inc at 39.
Amazon.com Inc scores zero in the Sustainable Platform database, not because it doesn’t contribute to the sustainability goals, but because the net sustainability score takes into account corporate violations. Amazon has over ten recorded violations, with fine amounts ranging from $5,500 (workplace OSH violation) to $5,000,000 (employment screening violation in 2018). Other violations include occupational health and safety violations to environmental violations.
All of the companies analysed have controversial industry exposure to fossil fuels, mainly oil. Kogan has the most fossil fuel exposure of the group. The sector's largest contribution to sustainability is unsurprisingly to the basic needs of clothing, but also to communication as well as knowledge and education.
Because of this, all of these companies score highly on SDG 11: Sustainable Cities and Communities, SDG 1: No Poverty, and SDG 3: Good Health and Well-being.
*All SDG score and data are provided by Sustainable Platform based on data as at 28 August 2020.
Top contributing goals
Of all the 17 SDGs, the top 4 listed insurance groups operating in Australia contribute most to these below goals:
SDG 1: No Poverty
SDG 3: Good Health & Well-being
SDG 11: Sustainable Cities and Communities
Find out more about the Sustainable Development Goals (SDGs).
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