Amazon Sets Climate Goals for Suppliers to Achieve Net Zero

Amazon has announced climate-related expectations for its key suppliers, focusing on decarbonization plans and prioritizing those committed to reaching net zero emissions. This initiative is part of Amazon’s broader efforts to tackle value chain emissions and meet its ambitious goal of net zero carbon emissions by 2040.

Decarbonization Expectations for Suppliers

In its 2023 Sustainability Report, Amazon disclosed that it has set specific requirements for suppliers, urging them to provide detailed plans for decarbonizing their operations. These new supplier expectations are crucial for Amazon’s strategy to reduce its Scope 3 emissions, which constitute approximately 75% of its total carbon footprint.

Significant Emission Reductions in 2023

Amazon’s 2023 Sustainability Report highlighted several key achievements:

• Overall carbon emissions reduced by 3%.
• Scope 3 emissions decreased by 5%.
• Scope 2 purchased electricity emissions fell by 11%.

These gains were somewhat offset by a 7% increase in Scope 1 emissions, primarily due to transportation fuel usage.

Focus on High-Emitting Suppliers

Amazon has identified its highest-emitting suppliers, who collectively account for over 50% of the company’s Scope 3 emissions. These suppliers are now required to:

• Provide decarbonization plans.
• Demonstrate measurable progress over time.

Prioritizing Sustainable Partnerships

Amazon is committed to prioritizing business with suppliers who submit net zero plans and show tangible results. The company is already collaborating with many of these suppliers to achieve mutual sustainability goals.

Statement from Amazon’s Chief Sustainability Officer

Following the report’s release, Amazon Chief Sustainability Officer Kara Hurst stated:

“We are committed to further reducing emissions in our supply chain and we expect that our future strategic suppliers aggressively decarbonize their operations over time.”

Conclusion

Amazon’s proactive measures set a strong precedent in corporate sustainability. By holding suppliers accountable and prioritizing those with robust decarbonization plans, Amazon is taking significant steps towards its 2040 net zero carbon emissions goal.