Business

Back-to-school sales are underway, and people across the country will be shopping online to fill up backpacks, lockers and closets – and they’ll be taking advantage of free returns. Making it easy for customers to return items at no cost started as a retail strategy to entice more people to shop online. But it’s getting expensive, for both retailers and the planet. In 2022, retail returns added up to more than US$800 billion in lost sales. The transportation, labor, and logistics involved raised retailers’ costs even higher. Product returns also increase pollution, greenhouse gas emissions and waste in landfills, where many returned products now end up. So how can retailers fix this problem and still provide quality customer service? We conduct research in reverse logistics, focusing primarily on the intersection of retail returns and customer behavior. Here are some insights that can help reduce the abuse of free returns and lower costs without losing...

E-commerce may make shopping more convenient, but it has a dark side that most consumers never see. Say you order an electric toothbrush and two shirts for yourself during a sale on Amazon. You unpack your order and discover that the electric toothbrush won’t charge and only one shirt fits you. So, you decide to return the unwanted shirt and the electric toothbrush. Returns like this might seem simple, and often they’re free for the consumer. But managing those returns can get costly for retailers, so much so that many returned items are simply thrown out. In 2022, returns cost retailers about US$816 billion in lost sales. That’s nearly as much as the U.S. spent on public schools and almost twice the cost of returns in 2020. The return process, with transportation and packaging, also generated about 24 million metric tons of planet-warming carbon dioxide emissions in 2022. Together, costs and emissions create a sustainability problem for retailers and the p...

Climate change risk factors can now be calculated as investment risks with a tool launched by Bloomberg and Riskthinking.AI, a data and software company, the two firms announced. The tool assesses the physical risks posed to companies by climate change so that investors and advisors can take these factors into consideration when making investments, the companies said. The risks that are used in the assessment are those named by the United Nations’ Intergovernmental Panel on Climate Change. “Combining Bloomberg’s data on more than one million physical assets with Riskthinking.AI’s highly granular data-set of global climate change projections and proprietary methodology, the indicators provide Bloomberg users with a new and powerful way to assess their exposure to floods, droughts, wildfires, and other climate vulnerabilities,” the firms said in a press release. “The impact from extreme weather events is of growing concern...

The planet is heating up as greenhouse gas emissions rise, contributing to extreme heat waves and once-unimaginable flooding. Yet despite the risks, countries’ policies are not on track to keep global warming in check. The problem isn’t a lack of technology. The International Energy Agency recently released a detailed analysis of the clean energy technology needed to lower greenhouse gas emissions to net zero globally by 2050. What’s needed, the IEA says, is significant government support to boost solar and wind power, electric vehicles, heat pumps and a variety of other technologies for a rapid energy transition. One politically popular tool for providing that government support is the subsidy. The U.S. government’s new Inflation Reduction Act is a multibillion-dollar example, packed with financial incentives to encourage people to buy electric vehicles, solar panels and more. But just how big do governments’ clean energy subsidies need to be to...

The United States is in the midst of the biggest boom in clean energy manufacturing investments in history, spurred by laws like the bipartisan Infrastructure Investment and Jobs Act and the Inflation Reduction Act. These laws have leveraged billions of dollars in government support to drive private sector investments in clean energy supply chains across the country. For several years, one of us, Jay Turner, and his students at Wellesley College have been tracking clean energy investments in the U.S. and sharing the data at The Big Green Machine website. That research shows that companies have announced 225 projects, totaling US$127 billion in investment, and more than 131,000 new jobs since the Inflation Reduction Act became law in 2022. You may have seen news stories that said these projects are at risk of failure or significant delays. In August 2024, the Financial Times reported that 40% of more than 100 projects it evaluated were delayed. These included battery manufacturi...