On 05 August 2024, Ethical Consumer viewed the website of Amazon.com Inc, looking for information on what the company was doing to tackle climate change. Its 2023 Sustainability Report was viewed.
Ethical Consumer was looking for the company to satisfy the following criteria:
1. A credible, detailed discussion of how it has made emissions cuts in the past and how it will make them in the future.
2. Does full annual public reporting of its emissions – all three scopes.
3. Has a future target for all Scopes that is either approved by the SBTi or at least the equivalent to 3.6% cuts/year in scope one and two emissions, and 2.5% cuts/year in scope 3.
4. Does not work in developing new extraction fossil fuel projects, building new fossil fired power stations or in doing anything with coal.
5. Is not engaging in highly misleading public messaging on climate change.
6. Has not been subject to credible secondary criticism on what it is doing on the climate.
1a. The company had credible discussion of past action to cut emissions in its main areas of impact:
It stated that it had obtained a 3% reduction in absolute emissions in 2023 from 2022, alongside a 13% decrease in carbon intensity. It stated that it was the largest purchaser of renewable energy on earth. Regarding Scope 3 emissions it stated: "In 2023, our Scope 3 emissions decreased by 5% from 2022 and represented 75% of our total carbon footprint. This decrease resulted from reductions related to building construction, leased buildings and equipment, and third-party transportation". However, it did not discuss other value chain emissions, such as purchased goods and services and the use of sold product in detail. This was deemed inadequate.
(0 points)
1b. The company had credible discussion of future action to cut emissions in its main areas of impact:
It outlined its plan and progress on deploying EVs across its global network. It had a goal to deploy 10,000 in India by 2025, and reached 7200 in 2023. It had a target to reach 100,000 EVs by 2030. It also outlined renewable energy investments, stating that it would "Invest in wind and solar farm capacity equal to the energy use of all active Echo, Fire TV, and Ring devices worldwide by 2025"
(10 points)
The company was not awarded marks for having a detailed discussion, as it lacked adequate information on its indirect operations, such as emissions associated with third party brands that it retails.
2. The company publicly reported on its emissions, but its Scope 1 & 2 emissions were market based rather than location based, and its Scope 3 emissions were not comprehensive. For example, its purchased goods and services only included "Amazon corporate purchases made for Amazon’s operations and services, Amazon-branded products" (0 points)
3. The company did not appear to have a target in line with international agreements. It stated its aim was to, "Achieve net-zero carbon emissions by 2040—10 years ahead of the Paris Agreement". However, it did not specify % reductions in scope 1, 2, and 3. Its targets were not approved by the Science Based Targets initiative, and it was removed from the SBTi in 2023 for not meeting its criteria.
4. The company was not found to work in developing new fossil fuel projects or doing anything in coal. (0 points deducted)
5. The company did not appear to be engaged in prominent misleading messaging. (10 points)
6. The following was found which showed that the company had credible third-party criticism: In an article titled "Private Report Shows How Amazon Drastically Undercounts Its Carbon Footprint" from Reveal News dated February 2022, the author highlighted how Amazon vastly undercuts its emissions, "Amazon takes responsibility for the full climate impact only of products with an Amazon brand label, which make up about 1% of its online sales." It added, "Under the [Greenhouse Gas] protocol, retail companies should be counting all the products they sell directly to consumers, said Alberto Carrillo Pineda, managing director of the Science Based Targets Initiative."
(-20 points)
Final scores are capped at either 0 or 100. Overall, Amazon.com Inc scored 0/100 for Climate.
Reference:
2023 Sustainability Report (5 August 2024)