Amazon's Emissions Rise in 2024 Despite ESG Efforts

by News Desk 1 month ago Sustainability Amazon

This rise despite efforts like EV fleet expansion and renewable energy use, is largely attributed to data centre growth and increased fuel consumption

Amazon’s delivery infrastructure, capable of processing more than 1,000 packages every minute, serves as the backbone of a complex global supply chain. Its sheer scale makes it a critical player in shaping the sustainability landscape of modern commerce.

With a global workforce of over 1.5 million people and an ecosystem of diverse subsidiaries, Amazon commands extraordinary influence over supply chain and procurement dynamics. This scale offers Amazon both a challenge and an opportunity to guide sustainability efforts across multiple industries.

Although Amazon reported an increase in its total greenhouse gas emissions in 2024, the company continues to invest in environmental, social, and governance (ESG) measures aimed at curbing its impact. These initiatives reflect a deeper commitment to balancing growth with environmental responsibility.

Pursuing Carbon Neutrality by 2040

Amazon has set an ambitious goal of achieving net-zero carbon emissions by the year 2040. This mission involves more than carbon offsetting; it requires integrating sustainability into the very fabric of procurement strategies, logistics, and daily operations across its supply chain.

"Looking ahead, we recognise that the path to being a more sustainable company will never be linear, because we’re charting new territory at an unprecedented scale," says Kara Hurst, Amazon’s Chief Sustainability Officer.

Emissions Metrics and Performance Indicators

In 2024, Amazon’s total emissions rose to 68.25 million metric tons of CO₂ equivalent, up from 64.38 million metric tons the previous year. However, the company improved its carbon efficiency, with emissions per dollar of gross merchandise sales dropping from 75.6 grams to 72.6 grams of CO₂e per dollar, indicating progress in emissions intensity even as absolute figures rose.

Kara adds: "While we are firm on our goals, our approach will continuously evolve with emerging challenges and opportunities, as we’re seeing with the rapid adoption of AI. No matter what we’re faced with in the future, we’ll remain steadfast in our commitment to sustainability and will continue to invest, innovate and obsess over our progress each year, with the same intensity and focus that has defined Amazon from day one."

Achieving 100% Renewable Energy for Electricity Use

A major milestone in Amazon’s sustainability roadmap was reached when the company met its target of sourcing 100% of its electricity from renewable sources globally. This achievement not only decreased the environmental impact of its operations but also set an industry benchmark for responsible energy procurement.

Electrifying the Delivery Fleet

A cornerstone of Amazon’s eco-conscious procurement strategy has been the integration of electric vehicles (EVs) into its delivery operations. The company aims to roll out 100,000 electric vans by 2030. In 2024, its EV fleet grew from over 19,000 vehicles to more than 31,000, demonstrating significant momentum in its push for cleaner logistics.

Milestones in Global Sustainability Efforts

The company’s progress extends beyond North America. In India, Amazon achieved an early milestone by deploying 10,000 electric delivery vehicles ahead of its 2025 goal. These actions reflect a global approach to emissions reduction, aligning regional procurement with broader corporate sustainability targets.

Amazon's sustainability efforts also include transforming how it handles packaging and waste. In 2024, the company phased out plastic air pillows in favour of recyclable paper fillers, resulting in a 16.4% global reduction in single-use plastic packaging. These changes are part of Amazon's commitment to minimizing environmental impact through smarter procurement and waste practices.

The company's landfill diversion rate rose to 85% in 2024, up from 84% the year prior and 82% the year before that. This steady improvement showcases how procurement decisions, such as selecting materials with end-of-life recyclability, contribute to a more circular and sustainable supply chain.

Evolving Strategies for a Sustainable Future

Amazon’s procurement policies are continuously evolving to reflect its larger sustainability agenda. Beyond reducing emissions, the company is investing in advanced sourcing strategies, innovations in materials, and collaborative efforts with partners to tackle global environmental challenges. These strategic shifts highlight Amazon’s role as not just a logistics giant, but a leader in the transition toward a greener global economy.

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