Amazon increased its renewable energy capacity by 8.3 GW in 2022, bringing its total portfolio to over 20 GW, enough to power millions of US homes.
Growing to become one of the largest global companies by market cap comes with great responsibility. The bigger the operations, the more damaging they can be to the environment with more energy use, carbon emissions, etc.
After the pandemic shuttered most people inside their homes, online shopping became a go-to for many.
As a result, e-commerce giant Amazon saw its business surge, with an over 200% rise in profits as shopping habits turned digital. To offset the company’s explosive growth, it has been investing in renewable energy projects and other sustainable activities to reduce its environmental impact.
Since 2014 Amazon has been on a mission to decarbonize its business globally by adding renewable energy capacity and electric vehicles to its fleet while striving to make packaging more efficient.
The e-commerce giant committed to rolling out over 100,000 EDVs from Rivian by 2030 as part of its Climate Pledge. According to Amazon’s latest update, over 1,000 Rivian EDVs debuted this past holiday season to make zero-emission deliveries.
Amazon’s renewable energy portfolio expanded in 2022
Meanwhile, the company added significant clean energy capacity last year to help it reach its goal of powering operations with 100% renewable energy by 2025, five years ahead of its goal.
Amazon announced today it set a new record for the most renewable energy purchased in 2022, adding an additional 8.3 GW through 133 new projects in 11 countries.
Altogether, Amazon now has over 20 GW, enough to power 5.3 million US homes. The clean energy capacity is spread throughout 401 projects (164 wind farms and 237 rooftop solar projects) in 22 different countries. According to Bloomberg New Energy Finance, Amazon remains the most prominent corporate buyer of renewable energy, maintaining the position since 2020.
Once complete and operational, Amazon expects to generate 56,881 GWh of clean energy annually.
Head of sustainability research at BloombergNEF, Kyle Harris, says Amazon’s clean energy portfolio is now among the leading utilities globally, adding:
The fact that it announced a new annual record of clean energy in a year mired by a global energy crisis, supply chain bottlenecks, and high interest rates speaks to its forward planning and expertise in navigating power markets and executing long-term contracts.
Despite economic uncertainty, Amazon stood by its commitment last year, doubling down on its renewable energy efforts.
You have to give credit where credit is due. Amazon is doing its part by deploying hundreds of clean energy projects across the globe.
Amazon says renewable energy reached 85% of its business in 2021. By doubling down this past year, the e-commerce giant is now on track to hit its goal of powering business operations with 100% renewable five years ahead of schedule.
However, the company still has a lot of work to do to lessen its environmental impact. According to research from Statista, packaging accounts for the most significant share of greenhouse gas emissions in the e-commerce industry, accounting for 45% of total emissions.
Amazon has also made strides in reducing emissions by reducing per-shipment packaging weight by 38% (eliminating over 1.5 million tons of packaging), optimizing materials, and offering vendors incentives to use fully recyclable materials.
The e-commerce giant is making significant progress in its renewable energy goals, yet there’s still a long way to go in reducing packaging waste and energy usage overall.
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