Amazon to Require Key Suppliers to Provide Decarbonization Plans
Amazon announced that it has set climate-related expectations for key suppliers, including providing decarbonization plans, and that it will prioritize working with suppliers committed to reaching net zero, as part of the company’s efforts to tackle its value chain emissions.
The new requirements form part of Amazon’s initiatives to reach its goal to achieve net zero carbon emissions by 2040. The company disclosed the supplier expectation in its 2023 Sustainability Report. According to the report, Scope 3 emissions account for approximately 75% of Amazon’s carbon footprint. Amazon reduced its carbon emissions by 3% in 2023, with Scope 3 emissions declining by 5%, and Scope 2 purchased electricity emissions falling 11%, partially offset by an 7% increase in Scope 1 emissions, primarily from the use of transportation fuels.
In the report, Amazon said that it has identified a list of its highest emitting suppliers, which collectively account for more than 50% of the company’s Scope 3 emissions, and that it has set expectations for those suppliers to provide a plan for how they will decarbonize their operations, as well as to demonstrate progress over time.
The company added that it will prioritize its business towards those who provide their net zero plans and results, noting that it is already working with many of these suppliers.
In a post following the release of the report, Amazon Chief Sustainability Officer Kara Hurst said:
“We are committed to further reducing emissions in our supply chain and we expect that our future strategic suppliers aggressively decarbonize their operations over time.”