Amazon is aiming to reduce its global carbon emissions and one major player is its suppliers.
As part of Amazon’s outlined plans in their 2023 Sustainability Report, they will require their highest-emitting suppliers (which account for over 50% of total supply chain emissions) to reduce their emissions. If suppliers don’t make progress, Amazon will deprioritize them.
In 2023, Amazon produced nearly 70 million metric tons of CO2. Of this, ~52 million tons came from its supply chain. If the company can get suppliers to cut down on emissions, the impact would be huge.
To help suppliers become more sustainable, Amazon launched the Sustainability Exchange, a free online collection of resources with tools, guides, and articles.
This is not Amazon’s first move toward becoming greener. In 2019, it co-founded The Climate Pledge. Along with 500+ other companies, Amazon is committed to reaching net-zero carbon emissions by 2040. This is a far earlier than the 2050 date set by the Paris Agreement. However, Amazon’s emissions have increased by over a third since 2019, though the company reported a 3% YOY decrease in 2023. Amazon has acknowledged its shaky progress, but remains committed to reducing emissions.
Other major retailers have launched similar plans to become more sustainable. In 2017, Walmart launched Project Gigaton to help suppliers cut down on emissions. Just this year, Walmart reported it had reduced or avoided 1 billion tons of emissions. This is 6 years earlier than expected.
As global warming and pollution continues to grip the planet, moves toward sustainability from major retailers show promise in creating a greener future.
Sources:
https://www.inc.com/mattea-vecera/amazon-is-putting-pressure-on-its-suppliers-to-reduce-their-carbon-footprints.html
