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Questions and Answers
A proactive approach is compatible with a higher level of ______.
CRS
Companies require certain certifications from their suppliers under a ______ based approach.
standards
Identifying all relevant ______ is crucial for effective stakeholder communication.
stakeholders
A developmental approach involves collaboratively engaging in shared ______ solving.
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Companies must accurately predict the evolution of ______ demands they may face in the future.
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Industry collaborations are important to minimize the risk of ______ due to multiple certifications.
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Each stakeholder should be classified based on their power, influence, and ______.
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Coca Cola took a ______ approach by developing new procedures with their business partners.
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Amazon has founded a ______ fund to support carbon neutrality technologies.
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Amazon aims to be climate neutral a decade before the Paris ______ requires.
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Scope 1 emissions are the easiest to reduce because they result directly from the company's ______.
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Scope 2 emissions come from electricity or heat that the company purchases from ______.
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Scope 3 emissions are the toughest to tackle as they relate to the activities in the ______ chain.
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Proactive responses allow companies more control and the ability to integrate priorities into their ______.
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Reactive responses often result in cost savings but can lead to large reputation ______.
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Amazon sells their cloud business to the fossil fuel industry, thus indirectly supporting them to explore, drill, and extract ______.
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Study Notes
Amazon and Corporate Sustainability
- Many stakeholders advocate for taxation on companies based on climate emissions.
- Amazon established a $2 billion fund to support technologies for carbon neutrality.
- Amazon aims to achieve climate neutrality a decade ahead of the Paris Agreement requirements.
- Lack of transparency exists as Amazon does not disclose complete emissions data.
- Amazon reports relative emissions rather than absolute figures, masking underlying issues.
- Emissions calculations are contentious; production emissions from external products are counted in sales but excluded from direct emissions.
- Significant logistics-related emissions (Scope 3) are not fully accounted, including those from consumer product use.
- Scope 1 emissions are the simplest to mitigate, stemming directly from company operations.
- Scope 2 emissions arise from purchased electricity and can be addressed through renewable energy procurement.
- Scope 3 emissions are the most challenging, linked to the supply chain and customer usage.
- Amazon's cloud services support fossil fuel companies, indirectly facilitating oil and gas extraction.
Corporate Response Orientations
- Companies can adopt proactive or reactive strategies towards sustainability.
Proactive Approach
- Greater control and strategic integration of sustainability into corporate priorities.
- Risks of over-expenditure but potential for comprehensive sustainability goals.
- Encourages proactive prediction of future sustainability demands to optimize resource allocation.
Reactive Approach
- Companies respond to external expectations rather than shaping their own sustainability goals.
- Opportunity for cost savings exists, but reputation may suffer from lack of proactive measures.
- Reactive strategies allow for targeted efforts in response to minimum compliance requirements.
Importance of Stakeholder Engagement
- Identifying relevant stakeholders is essential for effective communication.
- Stakeholders must be classified based on their power, influence, and interest in sustainability demands.
Approaches to Supply Chain Engagement
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Standards-Based Approach: Organizations set minimum certification standards for suppliers, feasible only with sufficient bargaining power (e.g., NIKE, McDonald's).
- Industry collaboration is encouraged to mitigate inefficiencies from multiple certifications.
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Developmental Approach: Businesses engage collaboratively with partners to solve problems and enhance performance.
- Example: Coca-Cola focused on developing new procedures and incentives instead of punitive measures against partners.
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Description
Explore Amazon's initiatives towards climate neutrality and the challenges they face. This quiz examines the complexities of emissions reporting and the different scopes of emissions. Test your knowledge on corporate sustainability practices and the impact of stakeholder advocacy.
