Amazon is expanding its Sustainability Exchange resource platform to give its value-chain partners access to investments in nature-based products and carbon reduction technologies through carbon credits, the company said this week.
The credits will only be offered to companies that have set a net-zero carbon emissions target covering direct emissions and operations, indirect emissions from purchased electricity and indirect emissions from other sources, Investors must also measure and publicly report greenhouse gas emissions on a regular basis and commit to implementing decarbonization strategies in line with the latest climate science.
“As we continue on our path to reach net-zero carbon emissions by 2040, we remain committed to reducing and eliminating emissions across our global business by implementing real, science-based operational changes—transitioning to carbon-free energy, increasing efficiency in our data centers, electrifying our delivery fleet, and decarbonizing our complex real estate portfolio, just to name a few,” Amazon said in an announcement on its website.
Amazon AMZN said it was following climate-science recommendations to invest in initiatives that have impact outside of its own business operations in order to scale carbon removal and channel private sector funding to critical nature projects that will help Amazon and other companies achieve their sustainability goals.
“The voluntary carbon market has been challenged with issues of transparency, credibility and the availability of high-quality carbon credits, which has led to skepticism about nature and technological carbon removal as an effective tool to combat climate change,” said Kara Hurst, chief sustainability officer at Amazon.
“However, the science is clear: We must halt and reverse deforestation and restore millions of miles of forests to slow the worst effects of climate change. We’re using our size and high vetting standards to help promote additional investments in nature, and we are excited to share this new opportunity with companies who are also committed to the difficult work of decarbonizing their operations.”
Amazon cited research from the United Nations Intergovernmental Panel on Climate Change that climate goals should also include reducing deforestation, restoring forest systems and removing a staggering 1 trillion tons of existing carbon emissions from the atmosphere by the end of this century. High-quality carbon credits are an important tool to help meet such goals, the company said.
“They finance actions that avoid or reduce greenhouse gas emissions, support social and economic development in communities, and provide a mechanism to measure and verify the climate impact of projects that are critical to our planet,” the announcement said. “However, the process of securing high-quality credits is complex, with companies often lacking access to credits, or seeking assurance that the underlying projects will deliver meaningful climate benefits.”
Companies that are already participating in the service include Climate Pledge signatory Flickr; real estate advisory and development services organization Seneca Group; commercial real estate construction, design and development company Ryan Companies; consumer electronics company Corsair; manufacturer and supplier of office furniture, solutions, and services Steelcase; and business technology consulting company Slalom.
“Our planet can’t wait. The need for bold corporate climate action has never been more urgent. Cutting emissions and protecting nature are both critical,” said Fred Krupp, president of the Environmental Defense Fund. “Amazon’s carbon credit service shows how companies can take meaningful action with speed and scale.”
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