Amazon’s carbon emissions rose 18% in 2021, largely due to demand for its services during the Covid pandemic.
In a new report, the Seattle-based tech giant revealed it emitted 71.54 million metric tons of carbon dioxide equivalent last year.
This represents a 40% increase and the third consecutive year of increased emissions, since the company began sharing figures in 2019.
He follows Amazon posting a loss of $2 billion last week for the second straight quarter as shoppers returned to stores post-pandemic.
Amazon revealed that it emitted 71.54 million metric tons of carbon dioxide equivalent in 2021. The company separated its emissions into three categories: purchased (emissions from purchased electricity), direct (direct emissions such as fossil fuels) and indirect emissions. The highest percentage growth in emissions was recorded in capital goods (in the indirect category). Capital goods include building construction, servers and other hardware, equipment and vehicles.
In a new report, Amazon revealed it emitted 71.54 million metric tons of carbon dioxide equivalent last year, a 40% increase since 2019 (pictured, Amazon offices in Seattle)
AMAZON CARBON EMISSIONS
Figures are per million metric tons of carbon dioxide equivalent (CO2e), the number of metric tons of CO2 emissions having the same global warming potential as one metric ton of another greenhouse gas.
Amazon aims to become carbon neutral by 2040 and to power 100% of its operations with renewable energy by 2025.
But in a blog postAmazon said its “carbon-intensive efforts” mean the path to decarbonization “remains challenging”.
“We operate businesses – delivery and transportation logistics, brick-and-mortar stores, groceries, manufacturing and cloud computing services – that involve moving products, manufacturing goods and building computing capabilities, all at scale. “, said the company.
“While some of these businesses – including cloud computing and e-commerce – offer greater efficiency, some are more carbon-intensive businesses.”
Amazon said it needed to scale its business “at an unprecedented rate” to help meet customer needs during the pandemic.
Amazon’s sprawling business spans fulfillment centers, delivery vehicles, tech devices, grocery stores, cloud services, data centers and more.
The company has separated its emissions into three categories: purchased emissions (emissions from purchased electricity), direct emissions (direct emissions such as fossil fuels) and indirect emissions.
The highest percentage growth in emissions was recorded in capital goods (in the indirect category). Capital goods include building construction, servers and other hardware, equipment and vehicles.
In a positive spin on its huge carbon emissions, Amazon said its carbon intensity — its carbon emissions divided by gross merchandise sales — fell by 1.9%.
According to the company, 2021 is the third consecutive year that its carbon intensity has decreased, and a continued decrease in carbon intensity can lead to lower absolute emissions.
71.54 million metric tons of carbon dioxide equivalent represents a 40% increase and the third consecutive year of rising emissions, since the company began sharing figures in 2019
In its quest to become carbon neutral by 2040, Amazon will build more sustainable buildings, use more zero-emission vehicles and decarbonize its supply chain, as well as power all of its operations with fully renewable energy by only two years.
Last year, it passed the milestone of using 85% renewable energy.
Amazon is constantly expanding its zero-emission transportation options such as electric delivery vans, cargo bikes, and foot deliveries.
Amazon’s sprawling business spans fulfillment centers, delivery vehicles, tech devices, grocery stores, cloud services, data centers, and more.
Last year, more than 100 million packages were delivered to the doorsteps of its customers worldwide using zero-emission vehicles.
In 2019, Amazon co-founded The Climate Pledge and pledged to achieve net zero carbon by 2040, 10 years ahead of the Paris Agreement.
This means that all of its carbon emissions would be offset by programs to offset an equivalent amount of greenhouse gases from the atmosphere.
There are now over 300 companies and organizations that have signed The Climate Pledge, also pledging to reach net zero by 2040, including Sainsbury’s, Virgin Media O2, Salesforce, HP, Logitech and Avivia.
AMAZON POSTS $2.03 BILLION LOSS IN SECOND QUARTER, BUT REVENUES EXCEED ESTIMATES
Amazon reported its second consecutive quarterly loss at the end of July, but its earnings beat Wall Street expectations, sending its stock soaring.
The Seattle-based e-commerce giant also said it was making progress in controlling some of the excess costs of its massive expansion during the COVID-19 pandemic.
Amazon lost $2.03 billion, or 20 cents per share, in the three months ended June 30, due to a $3.9 billion writedown in the value of its stock investment. in the electric vehicle start-up Rivian Automotive.
That compares to a profit of $7.78 billion a year ago. It posted a loss of $3.84 billion in the first quarter of this year, its first quarterly loss since 2015, which was also marked by a large writedown of Rivian. Analysts had expected a profit of 12 cents last quarter, according to FactSet.
But Wall Street was cheered by Amazon’s $121.2 billion in revenue, beating expectations of $119 billion. The results came as the company tried to cope with changing consumer demand and rising costs, while reducing the glut of warehouses it had acquired during the Covid-19 pandemic.
Shares in Amazon.com Inc. rose nearly 14% in after-hours trading.
Source: Associated Press