Amazon’s Greenhouse Gas Emissions Drop in 2023, But Carbon Footprint Still on the Rise
Amazon has reported a 3 percent year-over-year reduction in greenhouse gas emissions for 2023, showcasing its commitment to sustainability. This reduction is attributed to investments in over 500 renewable energy projects globally. Despite this positive development, Amazon’s carbon footprint has increased by 34.5 percent since the company made a net-zero commitment in 2019.
According to the Amazon 2023 Sustainability Report published on July 10, the company disclosed 68,820,000 metric tons of carbon dioxide equivalent for 2023, compared to 70,740,000 the previous year. In 2019, Amazon reported 51,170,000 metric tons as its baseline year. Amazon has set a goal to achieve net zero by 2040 as part of the Climate Pledge initiative launched five years ago.
In the report’s introductory note, Chief Sustainability Officer Kara Hurst acknowledged that progress towards a net-zero carbon business will not be linear due to the company’s growth and evolving business needs. She emphasized that results will be influenced by significant changes, investments in growth, and meeting customer demands.
Amazon, like Google and Microsoft, faces challenges in achieving its climate goals due to the growth of artificial intelligence. However, the company also recognizes AI as an enabler of efficiencies that can aid in reaching climate goals, such as balancing the electric grid and monitoring deforestation. While Google and Microsoft have seen increases in Scope 3 emissions, Amazon managed to reduce its Scope 3 emissions by 5 percent in 2023, primarily through lower-carbon construction methods for new facilities.
Amazon’s commitment to renewable energy has helped reduce its Scope 2 emissions by 11 percent in 2023. The company matches 100 percent of its annual electricity consumption with power purchased from various renewable energy projects, meeting its 2030 goal seven years ahead of schedule. Amazon’s innovative contracts, including purchasing nuclear plant capacity and collaborating with electric cooperatives, have contributed to its renewable energy success.
On the other hand, Amazon’s decision to shift towards its own delivery network has led to a 7 percent increase in Scope 1 emissions for 2023, related to package deliveries. Despite investments in electric vans and lower-emission delivery options, Scope 1 emissions have increased significantly since 2019. Amazon aims to have 100,000 electric vans on the road by 2030 to mitigate its delivery-related emissions.
Overall, Amazon’s sustainability efforts demonstrate a mix of progress and challenges in reducing its carbon footprint. The company’s investments in renewable energy and low-carbon construction methods are key strategies in achieving its net-zero goal by 2040.