- Amazon reduced emissions by 3% in 2023 by meeting its goal of using 100% renewable electricity globally.
- Direct operational emissions rose 7%, driven by increased package deliveries and business growth, including data centres.
- Amazon remains the most significant corporate purchaser of renewable electricity worldwide, investing in 112 new projects last year.
Amazon announced on July 10 that it reported a 3% reduction in emissions in 2023. The e-commerce giant fulfilled its goal of matching all its global electricity consumption with renewable power.
As scrutiny mounts over the environmental impact of technology giants, particularly with the growing electricity demand driven by artificial intelligence, Amazon’s sustainability efforts are under the spotlight. The company aims to reach net zero carbon by 2040 and has set a target in 2019 to achieve 100% renewable energy consumption by 2030, surpassing this goal.
According to Amazon’s annual sustainability report, total emissions in 2023 amounted to 68.82 million metric tons of carbon dioxide equivalent, down from 70.74 million tons the previous year. These figures include Amazon’s supply chain emissions, third-party logistics, and purchased electricity.
However, emissions from Amazon’s direct operations increased by 7% to 14.27 million tons, attributed to increased package deliveries by its in-house logistics team and overall business growth, including its data centres.
“We know generative AI requires substantial computing power. To meet this demand while progressing toward our climate goals, we’ll need different energy sources than we had originally projected,” said Chris Roe, Amazon’s Director of Worldwide Carbon, in an email statement to Reuters.
According to Bloomberg NEF, in 2023, Amazon invested in 112 new renewable projects and maintained its position as the world’s largest corporate purchaser of renewable electricity. The company also noted that it sometimes buys renewable energy credits to bridge gaps between project construction and operational commencement. However, it did not specify the quantity used to meet its targets.
To date, Amazon has invested in over 500 wind and solar projects globally, representing a total capacity of 28 gigawatts.