Amazon (AMZN) has launched a new Climate Pledge Fund with an initial $2 billion in funding to support the development of sustainable technologies and services.
This dedicated venture investment program will back visionary companies whose products and services will facilitate the transition to a zero-carbon economy, Amazon says.
The purpose of the fund is to enable Amazon and other companies to meet The Climate Pledge—a commitment to be net zero carbon by 2040.
The pledge was co-founded by Amazon and Global Optimism last year, and has since been joined by Verizon, Reckitt Benckiser (RB), and Infosys.
“Companies from around the world of all sizes and stages will be considered, from pre-product startups to well-established enterprises. Each prospective investment will be judged on its potential to accelerate the path to zero carbon and help protect the planet for future generations” commented Jeff Bezos, Amazon CEO.
The fund will invest in multiple industries, including transportation and logistics, energy generation, storage and utilization, manufacturing and materials, circular economy, and food and agriculture.
Over time, Amazon says it will also look for opportunities to involve other Climate Pledge signatories in this venture investment program.
Amazon has also now released its 2019 sustainability report, revealing that it could reach 100% renewable energy by 2025, five years ahead of schedule.
According to the report, the e-commerce giant has announced 91 renewable energy projects totaling over 2,900 MW of capacity and has reduced the weight of outbound packaging by 33% since 2015.
Shares in Amazon have soared 47% year-to-date, and analysts have a bullish Strong Buy consensus on the stock’s outlook. This breaks down into 39 buy ratings vs just 2 hold ratings and 1 sell rating. Meanwhile the average analyst price target stands at $2,747.
However five-star Needham analyst Laura Martin believes the stock has even more room to advance. She recently initiated Amazon with a Buy rating and $3,200 price target, but added that shares could rise to $5,000 longer-term.
Martin referred to “Amazon’s hidden value multiplier” thanks to “AMZN’s track record of TAM-expanding decisions that elongate its growth runway, drive higher profitability, and lower shareholder risk via revenue-stream diversification.” (See Amazon stock analysis on TipRanks).
Related News:
Amazon Could Be Worth $5,000 Long-Term, Says 5-Star Analyst
Lyft Agrees To Pay Damages, Revise Wheelchair Policy In Settlement Agreement
Microsoft’s Xbox Closes Mixer Live Streaming, Partners With Facebook Gaming
