Amazon, the e-commerce giant, has been making strides in sustainability, encompassing its entire business operations. In its latest report, the company outlines its ambitious environmental and social initiatives.
Many are familiar with Amazon's efforts in renewable energy, electric vehicles, and emissions reduction, there's one pending policy that's set to revolutionize its supply chain and create a ripple effect in the industry, or so we all thought.
In this blog post, we'll explore Amazon's commitment to sustainability, the upcoming supply chain disclosure policy, some of the remarkable achievements the company has made so far, and where they currently stand in August 2023.
We will also review the results of Amazon’s current initiatives and show you how to pilot your team’s goals to become a net zero supply chain.
Amazon's Vice President of Worldwide Sustainability, Kara Hurst, emphasizes that sustainability is not just limited to the company's e-commerce division. Amazon is an entertainment studio, cloud provider, grocer, and more, and sustainability is now a priority across all its business segments.
Starting in 2024, Amazon will update its supply chain standards to enforce regular reporting and emissions goal-setting for its suppliers.
This move aims to enhance transparency and accountability throughout the supply chain, setting an example for the industry. With such a massive influence, Amazon's push for supply chain disclosure can catalyze a positive transformation throughout the sector.
Amazon's size and scale present a unique opportunity to assist businesses committed to decarbonizing. The company plans to provide its suppliers with products and tools to track and reduce emissions. Furthermore, it will help select suppliers transition to renewable energy sources, a practice that aligns with its rival Walmart and tech giant Apple.
Amazon intends to partner with suppliers who can contribute to emissions reduction through innovative product offerings. By collaborating with such suppliers, Amazon aims to achieve its decarbonization vision while supporting and amplifying these groundbreaking innovations.
Amazon made significant strides in reducing its carbon footprint last year. The company achieved a 0.4 percent reduction in its overall carbon footprint, largely aided by aggressive renewable energy purchases. The "carbon intensity" of its emissions, measured in relation to revenue, decreased by 7 percent.
As of its last report, Amazon had invested in 410 solar and wind projects, powering 90 percent of its operations with renewable energy. With its certificates, Amazon can make this claim even if the power generated doesn't directly power its operations. The company is on track to achieve 100 percent renewable energy status by 2025.
Amazon's fleet now includes 9,000 electric delivery vehicles, with a target of introducing 100,000 Rivian electric delivery vans on the roads within seven years. This ambitious move is set to significantly reduce emissions from its last-mile delivery operations.
Green hydrogen is a priority for Amazon. The company currently uses 15,000 hydrogen-powered forklifts in its North American distribution centers. It has plans to expand this number to 40,000 by 2025 through fuel agreements.
Amazon successfully reduced its use of single-use plastics by 11.6 percent in 2022, opting for alternative materials and minimizing additional packaging. The company's efforts have resulted in a higher percentage of packages arriving at customers' doors without added delivery packaging.
Amazon's Climate Pledge Friendly program highlights products vetted through third-party certification programs. In 2022, approximately 800 million products shipped were linked to this program, supporting Amazon's commitment to reaching net-zero emissions by 2040.
Amazon's latest report demonstrates its desire and willingness to be transparent about its carbon emissions and goals as well as the report shows how successful companies struggle to maintain a clear process of meeting their suitability goals without third-party influence.
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