Amazon is expected to launch a $2 billion venture capital fund that will be utilized for technology investment to reduce the impact of climate change and focus on sustainable development to move into a zero-carbon economy by 2040.
The Climate Pledge was co-founded by Amazon and Global Optimism in 2019 to meet the Paris Agreement ten years early and to be net-zero in carbon emissions by 2040. Verizon, Reckitt Benckiser (RB) and Infosys had also recently joined the Pledge. The new pledge from Amazon has the potential to speed up the process of transitioning into a sustainable future.
“The Climate Pledge Fund will invest in businesses around sectors such as transport and logistics, electricity, storage and consumption, manufacturing and materials, and food and agriculture”, said the e-commerce giant.
Amazon, which delivers about 10 billion items a year with its massive transportation and data center footprint, has been facing backlash for firing employees who questioned the e-commerce giant’s climate stance.
After much pressure from its employees and environmental activists, the internet retail site revealed that it generated 51.17 million metric tons of carbon dioxide in 2019, equal to 13 coal-fired power stations operating for a year. That’s up from 2018 when 44.4 million metric tons of carbon dioxide were emitted. Since lockdown, customers have been depending more on the eCommerce site for its purchases which further increased its impact on the environment.
“Each prospective investment will be judged on its potential to accelerate the path to zero carbon and help protect the planet for future generations.”
Jeff Bezos, CEO – Amazon Inc
Amazon had successfully decreased the weight of its outbound packaging by 33% and eliminated more than 880,000 tons of packaging material since 2015. The brand had also announced that it is on track to function on 100% renewable energy by 2025, five years prior to what they had planned and vowed to be net carbon neutral by 2040.