Amazon Achieves 100% Renewable Energy for 2023

On Wednesday, Amazon declared that it had reached a significant environmental milestone by matching all the electricity consumed across its global operations in 2023 with 100% renewable energy. This announcement comes with some ambiguity, as experts question the specifics of the claim following the release of the company’s annual sustainability report.

In its blog post, Amazon highlighted that it had met its 2019 goal of aligning all energy usage—spanning data centers, corporate offices, grocery stores, and fulfillment centers—with renewable energy, seven years ahead of the planned deadline. The company achieved this by becoming the largest corporate buyer of renewable energy globally for the fourth consecutive year and investing billions of dollars in over 500 solar and wind power projects worldwide.

However, it’s important to note that Amazon’s claim does not imply that all the energy used at its facilities is directly sourced from renewable sources. Instead, the company purchases an equivalent amount of energy from renewable sources, which is then fed into the public electric grid. This method of matching energy usage with renewable sources has led to criticisms regarding the effectiveness of such claims.

The company’s sustainability report also revealed that despite these efforts, Amazon’s emissions from direct operations increased by 7% in 2023 compared to the previous year. Additionally, the report indicated a 34% rise in Amazon’s carbon footprint since the launch of its Climate Pledge in 2019, which aims for net zero carbon emissions by 2040. Although there was a 3% decrease in the carbon footprint in 2023 relative to 2022, the overall trend remains concerning.

Amazon reported a 13% reduction in its “carbon intensity” in 2023 compared to the previous year. Carbon intensity, as defined by Amazon, measures the grams of carbon dioxide emitted per dollar of gross merchandise sales. Since 2019, this metric has decreased by over 34%.

Experts have raised concerns about the clarity and transparency of Amazon’s climate claims. The Carbon Disclosure Project (CDP), a non-profit organization focused on climate reporting, awarded Amazon a ‘B’ rating for its climate change report. This rating is lower than the A- given to Apple and the A ratings for Google and Microsoft. A CDP director emphasized the need for companies to clearly outline the sources of their data and calculations. In response to the report, Amazon Employees for Climate Justice, a coalition of the company’s workers, organized a walkout in May, criticizing Amazon for worsening its climate performance.

Kara Hurst, Amazon’s Vice President of Worldwide Sustainability, acknowledged the challenges posed by the growing energy demands of technologies such as artificial intelligence. In the report, she noted that progress towards a net-zero carbon business is unlikely to be linear. As Amazon’s business evolves and expands, it will encounter various challenges and results. Hurst highlighted that while new technologies like AI may increase energy consumption, Amazon is equipped with more tools and strategies than ever before to address these issues.

Overall, while Amazon’s announcement of achieving 100% renewable energy in terms of energy purchase is a notable milestone, it is crucial to critically assess the details and implications of such claims. The company’s rising emissions and the mixed reception from climate experts suggest that the path to true sustainability remains complex and requires ongoing scrutiny and improvement.