Addressing the Environmental Footprint of E-Commerce

This research paper by Shamika N. Sirimanne of the International Institute for Sustainable Development examines the environmental footprint of the rapidly growing e-commerce sector. It identifies key drivers of environmental degradation—including warehousing, packaging, and high return rates—and proposes a multi-stakeholder agenda for action involving governments, the private sector, consumers, and international organizations to balance economic growth with sustainability.

• E-commerce has seen massive growth, with the number of online shoppers increasing from under 100 million in 2000 to over 2 billion by 2021. UN Trade and Development reports that the total value of e-commerce sales by businesses rose from USD 17 trillion in 2016 to USD 27 trillion in 2022, based on data from 43 economies representing 60% of global GDP.
• The environmental footprint of e-commerce is driven by several operational factors: warehousing (especially facilities on city outskirts that increase travel distance and energy use), packaging (which requires more materials than traditional retail and increases plastic waste), and the demand for fast delivery, which often relies on carbon-intensive air transport.
• High product return rates create significant environmental costs because items often travel long distances and may cross international borders multiple times for repackaging before being resold or discarded.
• Governments can mitigate e-commerce impacts through national regulations on sustainable packaging and carbon reporting, tax incentives for green technologies like electric vehicles, and urban planning that places distribution centres closer to urban centres to reduce emissions.
• The private sector can reduce its footprint by optimizing supply chains via data analytics, adopting biodegradable or reusable packaging, and managing returns more sustainably. Examples include Alibaba's Green Packaging Program, Patagonia's post-consumer program in the United States, and the installation of solar panels on warehouses by Daraz and Alibaba.
• Consumer behavior, including impulsive purchases and 'showrooming', contributes to overconsumption and waste. While over 90% of Gen Z and Millennial consumers express concern about sustainability, they are often hindered by a lack of reliable information and the appeal of fast delivery options.
• International cooperation is necessary to standardize data collection and support developing countries. Key organizations involved in coordinating the global response to the environmental impact of digitalization include the International Telecommunication Union, the International Organization for Standardization, and the United Nations Environment Programme through the CODES initiative.

APA

Sirimanne, S. N. (2024). Addressing the Environmental Footprint of E-Commerce. International Institute for Sustainable Development. https://www.iisd.org/articles/policy-analysis/e-commerce-environmental-footprint

Chicago

Sirimanne, Shamika N. Addressing the Environmental Footprint of E-Commerce. International Institute for Sustainable Development, 2024. https://www.iisd.org/articles/policy-analysis/e-commerce-environmental-footprint.

Wikipedia

{{cite report |last1=Sirimanne |first1=Shamika N. |title=Addressing the Environmental Footprint of E-Commerce |publisher=International Institute for Sustainable Development |date=30 October 2024 |url=https://www.iisd.org/articles/policy-analysis/e-commerce-environmental-footprint |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sirimanne2024addressing, author = {Sirimanne, Shamika N.}, title = {{Addressing the Environmental Footprint of E-Commerce}}, institution = {International Institute for Sustainable Development}, year = {2024}, month = oct, url = {https://www.iisd.org/articles/policy-analysis/e-commerce-environmental-footprint}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }