Amazon announced today a $1 billion sustainability bond issuance, with proceeds to fund green and social projects. The announcement follows the release by the company of its new Sustainable Bond Framework, outlining the eligible use of funds, project evaluation and selection process, management of proceeds guidelines and reporting components from green, social and sustainability bond issues.
According to the company, the offering will fund projects in five areas including renewable energy, clean transportation, sustainable buildings, affordable housing, and socioeconomic advancement & empowerment. Expenditures under these categories could range from electric vehicle acquisitions and charging station installations to renewable energy PPAs, building retrofits, construction of affordable housing, and education and skills development for employees, among others.
Amazon has emerged in recent years as a leading voice on many ESG issues. The company is set to become the largest corporate purchaser globally of renewable energy, and it co-founded the Climate Pledge, calling on companies to commit to achieve net zero carbon across their businesses 10 years ahead of the Paris Accord’s 2050 target. To date, the Climate Pledge has grown to over 100 companies, representing more than $1.4 trillion in revenues.
In its new Sustainable Bond Framework, Amazon said:
“Amazon is committed to and invested in sustainability because it’s good for the planet, for business, for our customers, and for our communities. From becoming one of the world’s largest corporate purchasers of renewable energy to deploying a new fleet of electric vehicles, we are working to reduce Amazon’s carbon footprint across all of our business operations and are leading the way for other companies to decarbonize worldwide. We use our scale for good, and support and strengthen the communities around the world where our employees live and work.”