The eBay exec preaching transparency

From: POLITICO's The Long Game - Wednesday May 18,2022 04:02 pm
May 18, 2022 View in browser
 
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By Jordan Wolman

VERBATIM

Renee Morin smiles.

Renee Morin leads eBay's sustainability efforts. | Photo Courtesy of Renee Morin

Renee Morin is the chief sustainability officer at eBay, the world’s No. 2 online marketplace. In her role, Morin toggles among tasks ranging from calculating and showing the company’s progress on carbon emissions reductions to interacting with shareholders. She is also a big believer in eBay’s recommerce business: She bought her first item through the company in the 1990s, and recently said she convinced three friends to buy a cordless vacuum cleaner through the website.

The online shopping boom inspired by the coronavirus pandemic has highlighted the environmental costs of delivery trucks, transportation and packaging required to get goods to consumers. Enter eBay’s new circular commerce methodology report , spearheaded by Morin, which breaks down how the global company calculates the environmental benefits and reduced supply chain strain that shopping around used goods can have.

This interview has been edited for length and clarity.

What are the main takeaways from the recommerce methodology report? Why should someone care about this?

We really wanted to show transparency behind the work that we’ve been doing. I do think there’s been a groundswell around transparency in general, a lot of it being instigated by investors but just as well Gen Z, younger generations. They want to understand what you’re doing and they want to see. And we’re not hiding anything. So we wanted to put as much as we possibly could about the methodology about how we calculate these impacts.

A lot of folks wouldn’t understand necessarily that there’s two different rates that get combined together to say how much of a used product is really displacing a new one? It’s not a 1:1 situation. I think that can be confused sometimes.

Basically, what you need to look at is if I have one used sweater, would I have bought a new one, too? Likely, yes. You probably have a new one and a used one. For a laptop, not the same thing. If you buy a used laptop, you probably don’t also need to buy a new one. We’re not saying one used vacuum cleaner completely displaces one new vacuum cleaner.

We want to be conservative and transparent about what those impacts really are. So it ends up being somewhere around 20 to 40 percent depending on the category you’re in, and those are the emissions that are avoided and that’s the waste that are now not being sent to a landfill.

It seems, from your impact report , that Scope 3 emissions [those from assets not owned or controlled by the reporting entity] may have been more challenging for eBay. You have these absolute reduction goals. Specific to Scope 3, what’s your plan for cutting those down?

It’s a multi-pronged strategy. By and large, the majority of our Scope 3 emissions are downstream transportation of products that are being sold by our sellers and delivered to our buyers.

We’re a global company. So this first couple of years have really been trying to get our arms wrapped around the data and what the actual impact is from our goods being transported to multiple countries. So that’s step 1.

Step 2, which is what we are doing currently internally, is what are we going to do to engage with our carriers in the United States and abroad and understand what their goals are to electrify their fleets. I think that’s going to be a real game-changer, which also takes electrifying the grid so we have renewable energy feeding into the vehicles.

And then thirdly, we have our own responsibilities. How can we, as eBay, better present options online so our consumers are informed around a decision around transportation? And not necessarily just offsetting that by purchasing carbon offsets.

Renee Morin pull quote

So since you brought up policy, let me ask you about the SEC climate disclosure rule. Do you support the proposed rule?

We combined with other tech companies last fall to submit a letter to the SEC before the proposed rule came out supporting the rule. We want to see more disclosure. We’ve been disclosing for a long time.

We’re at the stage right now where the 500 pages of this rule, we’re looking into it to see where we might be able to fine tune it a bit. Not to pull away from disclosure but to make it in a way where not only large companies like ourselves that have resources can comply, but smaller companies that might be subject to this disclosure that they would also be able to comply.

There’s a couple of tweaks we’d like to see. I can’t really disclose all that right now. We’ll probably submit that in writing.

In terms of electronics reuse specifically, has that become a more popular part of eBay? What do you make of the ongoing debate over critical minerals supply – especially since we’re not really at the point yet where we have the existing supply to be able to solely rely on recycling for certain products?

We’ve definitely seen an increase in used and refurbished goods online in the electronics space as well as in fashion. There’s more product available, there’s more variability in that product, there's more brands that would be put on our platform to help keep that e-waste out of landfills.

We sit at a very unique part of the circular economy, because we aren’t manufacturers and we aren’t brick and mortar. But that doesn’t mean we don’t care about where these products end up. There needs to be a better infrastructure put in place way beyond eBay in terms of e-waste recycling as well as more public-private partnerships.

Can you speak to what eBay’s thinking and strategy is when it comes to carbon offsets?

We just became carbon neutral in 2021, and that is with the purchase of offsets just for scopes 1 and 2. We don’t at this point have a net zero goal. It’s something we are evaluating internally. How realistic, what does that plan look like?

We have to have some milestones in place to show that net zero is feasible. Right now, for scope 1 and 2, it’s not as difficult. Our footprint is quite small. We’ve also been reducing our offsets at a pretty aggressive rate over the last five years. And we just reset our goal to be in line with science-based targets.

Our science-based target goal was announced last year. We’re really trying to reduce emissions first and offset after the fact. From there on, hopefully we can get to the point where we don’t have to use offsets for scopes 1 and 2.

Our absolute reduction goal does not include offsets. The offsets we purchase vary, we want to have high-quality ones and ones with co-benefits in general. We are looking at cook stoves in Rwanda, there’s some forestry in the U.S., things of that nature. The most important thing is to stop emitting so that you don’t have to offset.

It’ll be interesting to see how that evolves, especially with the net-zero claims that are coming out, because those things do touch scope 3. At the end of the day we need to have quality offsets that are traceable, that are impactful and that are really helping to avoid but sequester carbon emissions. But I wouldn’t say it’s our number one priority. Our number one priority will always be to reduce emissions.

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