🌿 New Supplier Expectations
Amazon announced new climate-related expectations for its key suppliers. The company wants them to provide decarbonization plans. This is part of Amazon's effort to reach net zero carbon emissions by 2040. They disclosed this requirement in their 2023 Sustainability Report. "We are committed to further reducing emissions in our supply chain," said Kara Hurst, Amazon's Chief Sustainability Officer.
📉 Emission Reduction Progress
Amazon's 2023 Sustainability Report highlighted progress in emission reductions. The company reduced its carbon emissions by 3% in 2023. Scope 3 emissions, which account for 75% of Amazon's carbon footprint, declined by 5%. Scope 2 emissions from purchased electricity fell by 11%. However, Scope 1 emissions from transportation fuels increased by 7%.
🏭 Supplier Impact
Amazon identified its highest-emitting suppliers. These suppliers account for more than 50% of the company’s Scope 3 emissions. Amazon has set expectations for these suppliers to provide decarbonization plans and demonstrate progress over time. The company will prioritize working with suppliers committed to reaching net zero.
🔄 Strategic Prioritization
Amazon will prioritize its business towards suppliers with net zero plans. Kara Hurst stated that Amazon expects future strategic suppliers to aggressively decarbonize their operations over time. The company is already collaborating with many of these suppliers to meet its environmental goals.
Will Amazon's supplier requirements lead to industry-wide changes?
