Amazon's announcement in September that it would be joining other companies and institutions pledging their support for the UN's goal of limiting global warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) above preindustrial levels isn't just another marketing ploy. It means big changes are coming to how we consume products across the world—and those who don't follow through could face serious consequences.
In an effort to draw attention to its new policy on climate change, Amazon announced it will become one of more than 3,000 businesses, cities, states, universities, and organizations worldwide participating in the United Nations' "Climate Pledge." This international initiative aims to limit average temperature rise to less than 2 C or 3.6 F above preindustrial temperatures.
This pledge comes as part of efforts to address climate change, which scientists say poses significant threats to human life and health around the globe. In addition to the effects of rising sea level, heat waves, extreme weather events like hurricanes, wildfires, droughts, crop failures, and food insecurity, there have also been reports of increased insect outbreaks.
These impacts can cause economic loss due to damage from flooding, storms, fires, and drought. They threaten public health and safety because they make people sicker when air quality worsens. And, while many experts believe these problems won't happen overnight, some predict them happening within the next two decades if nothing is done.
But the UN says this doesn't need to come at the expense of growth. Rather, it needs to focus on creating good jobs and opportunities so that people aren't left out of the benefits of technological advances related to renewable energy sources like solar panels, wind turbines, electric cars, and smart grids. These advancements not only improve our lives but provide ways to reduce greenhouse gas emissions.
To help move toward achieving the goals set forth by the UN, Amazon committed to reaching zero carbon emissions by 2030 and becoming 100% fossil fuel free by 2050. At the time of its announcement, Amazon said it had already made progress towards meeting both targets. For example, it now uses renewable electricity for all data centers where possible, and it plans to use renewable power for all cloud computing operations globally by 2025. Additionally, it hopes to achieve 100 percent renewable energy usage for its own business units by 2021.
It sounds great that Amazon wants to take steps to mitigate the negative effects of climate change. But does this mean it intends to go completely clean energy? No. If you look closely at Amazon's website, you'll see an entire section dedicated to renewable energy. However, the company still sells several nonrenewable resources including coal, oil, and natural gas. According to Greenpeace, Amazon currently buys almost 30 million tons of coal per year. That's enough to cover the annual output of 14 large-scale U.S. coal plants.
While Amazon hasn't publicly addressed why it continues to sell such harmful commodities, it may be doing so to keep prices low and maintain profit margins. After all, lower costs allow the company to offer better deals to customers, making it harder for competitors to compete.
For instance, according to Bloomberg News, Amazon spent $1 billion last year on buying up solar farms to supply its data center facilities. When questioned about why it still purchases coal, one spokesperson told reporters, "[W]e try very hard to buy responsibly" and pointed to environmental sustainability as a key reason for purchasing renewables.
However, the company admits that it isn't always successful. A representative stated, “We continue to invest heavily in developing cleaner technologies, but sometimes find ourselves unable to source certain materials efficiently or cheaply. As a result, we often end up sourcing some materials from places that produce higher quantities of CO₂. We work hard every day to minimize our contributions to pollution while continuing to grow our business while minimizing cost, and we remain hopeful that technology will further enable us to meet our ambitious goals even faster."
If Amazon truly wanted to eliminate pollution, it'd stop selling anything that contributes to it. One way to do that might be to create a separate subsidiary focused solely on selling sustainable goods. Another option would be for the company to start using renewable energy internally instead of relying on suppliers.
The Climate Pledge came into being after President Obama issued his Clean Power Plan, which aimed to cut US greenhouse gas emissions 32 percent below 2005 levels by 2030. Unfortunately, the Trump administration repealed the plan shortly thereafter.
Now, the United States is falling far short of its 2020 target, which calls for 26 percent reduction compared to 2005 levels. Meanwhile, China has pledged to peak its emissions before 2030, though its current rate of increase outpaces that of most countries.
As a result, the UN released the Global Compact for the Future in June 2017. Its aim is to raise ambition and build momentum toward implementing the Paris Agreement. To do this, it created the Climate Pledge and invited companies and governments to join the movement. More than 3,100 entities signed onto the agreement, including Google, Microsoft, Apple, Facebook, Netflix, IBM, Cisco, Walmart, Starbucks, and Uber.
Some of the pledges themselves were vague, stating that the signatory would strive to reach net-zero carbon emissions by 2050. Others included specific measures, such as investing in renewable energy projects, reducing waste, and increasing transparency in reporting.
During a press call held on Sept. 5, 2019, Jeff Bezos, CEO of Amazon, unveiled the company's latest step toward going green. He noted that he believes the company should play a role in addressing climate issues.
He explained, "I think it makes sense for us to participate [in the Climate Pledge]. I think it’s important for us to show leadership here."
Bezos then went on to lay out three main areas of focus:
Investing in renewable energy infrastructure
Reducing the amount of plastic used in packaging
Increasing employee engagement
Since then, Amazon has taken actions in each area. For example, in October 2018, it announced a partnership with SolarCity to develop rooftop solar arrays on buildings throughout North America.
At the same event, the company also launched the Amazon Carbon Footprint Fund, which supports the development of innovative technologies that fight climate change. Over the past five years, the fund has awarded grants worth nearly $3 million to 17 different research teams working on everything from battery storage systems to water desalination techniques.
According to the UN, the Climate Pledge is backed by more than 3,100 entities representing government agencies, corporations, foundations, and NGOs. Some notable names include the World Bank Group, the European Investment Bank, the UK Department for International Development, the Australian Government, the French Ministry of Finance, and the German Federal Environment Agency.
Additionally, hundreds of thousands of individual citizens have pledged their support via initiatives like the Climate Reality Project.
Many of the organizations supporting this initiative represent businesses, municipalities, schools, and others who want to see major reductions in greenhouse gases. By signing the Climate Pledge, these groups commit to taking action against climate change.
With the number of supporters growing rapidly, the UN expects the pledge to deliver results much quicker than previous attempts at curbing climate change. While the organization acknowledges that the pledge alone will not solve the problem, it says it will serve as a catalyst for greater investment.
So far, the pledge seems to be having a positive effect. Since 2013, total investments in sustainable energy have risen from $4.5 billion to $15.8 billion. Investments in renewable energy rose from $600 million to $11 billion between 2014 and 2015. The percentage of corporate stock owned by employees looking to protect the environment grew from 9 percent in 2016 to 19 percent today.
And, the price of solar photovoltaic cells dropped 70 percent from 2010 to 2016, helping drive down the overall cost of installing solar systems. All of these factors point to a promising future for greener living.
Amazon's new "Climate Pledge" is an ambitious effort to cut its own greenhouse gas (GHG) emissions and contribute to global efforts to reduce them. However, critics are calling it too little, too late. And while there isn't any doubt that Amazon will be doing some good for the planet in the coming decades if they continue their current practices, many people believe this is all just smoke and mirrors. Is Amazon really serious about fighting climate change or is this another PR stunt designed to win more customers? What exactly is Amazon pledging to do, anyway?
It's pretty clear from the outset that Amazon is not interested in reducing its own GHGs. In fact, the company is doubling down on fossil fuels like natural gas and oil in the next decade. According to Bloomberg New Energy Finance data cited by Reuters, Amazon plans to build five liquefied natural gas terminals along the U.S.-Canada border as well as a fleet of electric delivery trucks. It also wants to expand its use of shipping containers made from recycled plastic rather than using lighter but less efficient steel ones.
But even though Amazon may seem like one big polluter, it still emits tons fewer CO2 per year than other companies. For example, Apple releases around 50 million iPhones every year which have a combined energy consumption of 1 billion kWh. On top of that, Apple runs 100% renewable energy at its headquarters in California. That means that Apple uses only 16 times less electricity than Amazon according to Greenpeace.
However, that doesn't mean that Amazon can sit idly by while everyone else goes green. As part of the Climate Pledge, Amazon pledged to invest $1.5 billion into clean technology projects. They plan to spend $200 million each on wind farms and solar power plants. But beyond these investments, Amazon says it will help customers switch to greener products and services through its marketplace and Alexa voice assistant. If you're buying something online, Amazon will tell you whether you should buy something better for your health, the environment, or both. This could include things such as organic food options, low-carbon travel, and sustainable clothing.
In addition to investing money in renewables, Amazon said that it would create 10,000 jobs across North America to support those initiatives. There were no details given on how the jobs would be distributed between different regions within the United States or Canada.
There's been plenty of debate surrounding Amazon's sustainability record. One of the main criticisms surrounds its massive warehouses where millions of items are stored before being shipped out to consumers. Critics argue that Amazon stores so much stuff indoors because it knows that the majority of it won't get sold. So why bother keeping it? A recent report found that most of the goods that make up Amazon Prime's bestsellers aren't necessarily popular among non-Prime members.
Additionally, Amazon has faced scrutiny over its treatment of warehouse workers who often face dangerous working conditions including long hours, poor pay, and unsafe equipment. While Amazon claims that it pays well above minimum wage, the average hourly rate is closer to $13.50 compared to Walmart's $11.38, Costco's $12.47, Kroger's $14.48, and Target's $15.25.
As far as the rest of Amazon goes, it's hard to say whether or not it's truly committed to improving its environmental impacts. Some have criticized the company for taking advantage of loopholes in federal regulations such as the Clean Power Plan. Others point to the fact that Amazon owns Whole Foods, a chain known for high quality produce and healthy foods. Many of those same buyers might choose to shop elsewhere when shopping for groceries.
Another major issue revolves around the sheer size of Amazon's business and how much waste it generates. With such a large number of employees, the company must deal with a lot of trash. The vast amount of packaging used to ship packages makes dealing with waste difficult. Plus, Amazon operates more than 40 fulfillment centers across the country which means it takes longer to recycle materials since they need to go through multiple facilities.
One of the biggest criticisms leveled against Amazon is that it continues to grow. Despite its attempts to offset its environmental footprints, it's never going to stop adding new buildings and offices. The question then becomes, will Amazon ever become fully carbon neutral? Or will it simply remain reliant on dirty methods until someone comes along and offers them a solution?
This is especially important considering that the world needs to get rid of almost four trillion metric tons of CO2 by 2050 to keep warming below 2 degrees Celsius. To accomplish that feat, we'll need to find ways to suck up our excess CO2 emissions from places like cars, factories, and coal mines. If Amazon is relying solely on offsets to tackle its carbon problem, it's unlikely that it will ever completely eliminate its carbon output. That leaves us wondering whether Amazon is merely trying to appear proactive about tackling climate change without making meaningful changes to its operations.
While Amazon has taken steps towards becoming more eco-friendly, it hasn't done anything drastic enough to earn itself a place on the UN's list of Sustainable Development Goals. Instead, it falls under Goal 9, which calls for increased investment in infrastructure, education, and innovation.
That said, Amazon did announce two separate programs dedicated to giving back to society. Its $100 million Climate Fund was created to support organizations working to address climate issues. The aim of the fund is to provide grants to local groups and nonprofits in order to develop solutions to the problems caused by climate change. These funds come from the sale of carbon credits generated from all of Amazon's sales of carbon offsets.
Meanwhile, Amazon announced last month that it had partnered with Kiva Zip, a startup founded by former NASA engineer Brian Gagliano, to offer free loans to small businesses that want to improve their efficiency. These loans allow entrepreneurs to purchase and install appliances, tools, and machines that save them time and money.
All told, Amazon seems to be moving forward with its pledge to fight climate change. Whether or not it achieves its goals remains to be seen. Hopefully, Amazon will take the opportunity to show off its true colors and prove to the public that it cares about the future of the planet. After all, if the company isn't willing to sacrifice profits for the sake of the earth, who will?
Amazon announced its new "Climate Pledge," which aims to reduce greenhouse gas (GHG) emissions and build an environmentally sustainable business on December 22, 2019. It's part of an effort to meet the goals set forth in the Paris Agreement—to keep global temperature increases below 2 degrees Celsius above preindustrial levels while pursuing efforts that limit the increase to 1.5 degrees C.
But despite all the buzz around this initiative, it can be hard to know exactly how much power these pledges have when you're trying to take action against climate change at home or abroad. Here are some answers to common questions about how Amazon plans to go about meeting its ambitious goal.
In addition to its internal commitments to address climate change through initiatives like the Climate Pledge, Amazon also works closely with other companies and governments to create positive changes. In 2018 alone, Amazon provided funding support for 100 projects worldwide that aimed to improve air quality, protect wildlife habitats, and more.
"We believe we need to work together to solve our biggest problems as a society."
To further advance sustainability, Amazon has partnered with several organizations including Earth Hour, World Wildlife Fund, UNICEF, Global Citizen Festival, and many others. It has also invested $3 billion into renewable energy generation across North America since 2016. This investment helped generate nearly 50 gigawatts of clean electricity.
Amazon also worked with cities and states around the world to develop policies supporting sustainability. For example, Seattle became one of the first US municipalities to adopt a policy requiring buildings to achieve LEED certification starting January 2020. And Amazon pledged to source 100% of its packaging from recycled content by 2025.
As of September 2019, Amazon had already achieved a total reduction of 3 million metric tons of CO2 compared to 2005, thanks to its investments and partnerships. That means that if every person were to consume only products sold by Amazon, they would offset their own personal carbon footprint enough to prevent roughly 6,000 homes being built each year. To put that number in perspective, there are currently 12 million households living in houses built before 2000.
One way Amazon helps combat climate change is by encouraging customers to buy goods produced sustainably. According to the company, 90% of its packaged food items come from suppliers who are certified according to standards such as Fairtrade International, Rainforest Alliance, Forest Stewardship Council, and Certified Organic. These labels show consumers where their purchases will end up.
While Amazon doesn't sell any products directly labeled green, it does offer them through third parties. This includes everything from organic eggs and fair trade coffee beans to solar panels and rainwater catchment systems. If you want to find out whether a product is actually made with low-carbon materials, the website GreenFacts gives you information on how products are manufactured and shipped.
Another way Amazon supports the environment is by using its cloud computing platform, AWS, to run data centers powered entirely by renewables. By November 2021, Amazon expects to use no fossil fuels whatsoever to operate its facilities.
For now, Amazon still relies heavily on coal plants to provide some of its electricity needs. But the company says that it wants to transition away from burning fossil fuels altogether. As of December 2019, the company said it was working toward having 25 percent of its operations powered by renewable sources.
By creating an entire supply chain based on renewable resources, Amazon hopes to eliminate its dependence on dirty fuel sources. One example is its wind farm project called Aurora Wind Farm in northern Alberta, Canada. It started construction in May 2017 and began producing electricity in October of the same year. Since then, the facility has generated 4 megawatts of clean energy.
Amazon also uses less plastic than most retailers. Instead of shipping boxes filled with packing peanuts, the company sends packages wrapped in paper instead. And instead of sending single-use plastics like straws, chopsticks, and utensils, the company offers reusable options like bamboo cutlery. Additionally, Amazon provides free delivery for orders under $15.
Other ways Amazon reduces its carbon footprint include investing in electric vehicles and providing incentives for people to switch to public transportation.
The company also operates data centers around the world that rely exclusively on renewable energy, including those located in Ireland, Germany, Spain, Sweden, Denmark, Finland, France, Italy, Norway, Netherlands, Belgium, Luxembourg, United Kingdom, Hungary, Poland, Slovakia, Slovenia, Czech Republic, Austria, Bulgaria, Romania, Croatia, Cyprus, Greece, Latvia, Lithuania, Estonia, Turkey, Ukraine, Kazakhstan, Russia, Belarus, Moldova, Georgia, Azerbaijan, Armenia, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan, Afghanistan, Pakistan, India, Bangladesh, Sri Lanka, Nepal, Bhutan, China, Thailand, Cambodia, Laos, Vietnam, Malaysia, Indonesia, Philippines, Singapore, Papua New Guinea, Solomon Islands, Kiribati, Tuvalu, Samoa, Vanuatu, Cook Islands, Fiji, Tonga, Niue, Marshall Islands, Micronesia, Nauru, Palau, Federated States of Nigeria, Democratic Republic of Congo, Angola, Namibia, Botswana, South Africa, Lesotho, Swaziland, Eswatini, Libya, Sudan, Chad, Central African Republic, Cameroon, Equatorial Guinea, Gabon, São Tomé & Príncipe, Senegal, Sierra Leone, Gambia, Ghana, Liberia, Mauritania, Mali, Niger, Burkina Faso, Benin, Togo, Ethiopia, Eritrea, Djibouti, Somalia, Kenya, Uganda, Rwanda, Burundi, Comoros, Madagascar, Mozambique, Tanzania, Zambia, Malawi, Zimbabwe, Angola, Cape Verde, East Timor, Saudi Arabia, Qatar, Bahrain, Kuwait, Oman, Jordan, Yemen, Iraq, Syria, Lebanon, Israel, Palestine Territories, Egypt, Tunisia, Algeria, Morocco, Canary Islands, Western Sahara, Iran, Gibraltar, Kosovo, Serbia, Montenegro, Bosnia and Herzegovina, Macedonia, Albania, Vatican City State, Malta, San Marino, Monaco, Cayman Islands, Turks and Caicos Islands, Dominica, St Lucia, Antigua and Barbuda, Bahamas, Grenada, Montserrat, Saint Kitts and Nevis, Anguilla, Aruba, Bermuda, British Virgin Islands, Cayman Brac, Curacao, Falkland Islands, Guadeloupe, Martinique, Puerto Rico, Saba, St Eustatius, Sint Maarten, Suriname, Trinidad and Tobago, Turks and Caicos Islands, Uruguay, Venezuela, Colombia, Ecuador, Panama, Peru, Chile, Argentina, Paraguay, Bolivia, Brazil, Guyana, French Guiana, Surinam, Dutch Guyana, Belize, Mexico, Honduras, Nicaragua, El Salvador, Guatemala, Costa Rica, Panama, Cuba, Dominican Republic, Haiti, Jamaica, Bahama Islands, Puerto Rico, U.S. Virgin Islands, Honduras, Nicaragua, El Salvador, Guatemala, Belize, Costa Rica, Panama, Honduras, Nicaragua, Cuba, Dominican Republic, Haiti, Jamaica, Bahama Islands, Puerto Rico, U.S. Virgin Islands, and Guam.
Like most businesses, Amazon recognizes that climate change poses a threat not just to the planet but also to employees and communities nearby. So far, the company has committed $1 million annually to an employee assistance fund, which benefits local nonprofits offering job training programs, career counseling services, and skills development opportunities for current and former Amazonians.
Additionally, Amazon launched the Amazon Employees Climate Change Team in 2011, comprised of leaders from different parts of the company, who advocate for improved worker safety and health, increased access to healthcare, reduced commute times, better lighting, and more equitable distribution of household chores throughout the organization. They've been successful so far, winning praise from the National Nurses Union and the American Federation of Teachers for their efforts.
And if you'd rather talk about something else, Amazon is hosting a series of virtual events between February 14th and March 31st to discuss climate issues. You'll get a chance to ask questions and connect with experts from the field. The company also recently published a report titled "Making Progress Together: A Report Card on What We Are Doing About Climate Change in Our Businesses".
If you're looking for even more info on climate change, check out the links here. Also, if you're interested in learning more about Amazon's overall sustainability efforts, read our article exploring the company's history of protecting forests and oceans.
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