Amazon reported lower carbon emissions in 2023 for the second consecutive year. Representatives of the IT giant attribute this reduction to decreased costs for new warehouses and data centers for cloud AI computing. According to Bloomberg, greenhouse gas emissions fell 3% to 68.82 million tonnes of CO2e last year. This decline was largely driven by a 13% drop in emissions associated with capital goods, including construction and equipment purchases. Capital expenditures fell by $10 billion in 2023 due to excess warehouse capacity created during the COVID-19 pandemic and reduced spending on AWS data centers.
Future Challenges and Investments
The data released by Amazon contrasts with those of Microsoft and Google, which are working to reduce emissions amid the growth of resource-intensive data centers for AI. However, Amazon has committed to spending $150 billion on data center AI over the next 15 years, which may present similar challenges in the future. Amazon’s intricate and massive logistics operations produce roughly the same level of emissions as all of Google’s operations combined, yet Amazon does not separately disclose AWS emissions statistics. We’ll keep you updated on any changes to their reporting practices.
Commitment to Sustainability
Amazon intends to reduce carbon emissions to zero by 2040. This goal is already being supported by Rivian’s 100,000 electric vans and the use of more environmentally friendly aviation fuel, concrete, and steel in its buildings. To demonstrate the impact of these initiatives, Amazon has integrated relevant ecometrics into its planning processes. The company emphasizes that the decarbonization process is challenging, but they now have tools that were unavailable just a few years ago.
In 2023, Amazon purchased enough renewable energy to fully offset its own energy consumption through Renewable Energy Certificates (RECs). While these certificates allow the company’s facilities to be powered from any energy source, they do not always contribute to a direct reduction in emissions. Nevertheless, Amazon remains a major proponent of renewable energy and supports “green” projects through similar renewable energy sources, notes NIXSolutions.
Since Bezos unveiled his climate goals in 2019, Amazon’s carbon emissions per dollar earned have fallen by a third. Over the same period, however, emissions increased by 34% in absolute terms. We’ll keep you updated on Amazon’s progress and any future developments in their sustainability efforts.