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Is Amazon's Supply Chain Emissions Reporting Ambitious or Achievable?

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The company’s 2022 Sustainability Report calls for suppliers to report their carbon emissions and set carbon goals to continue doing business with Amazon.

Kara Hurst, Vice President and Head of Worldwide Sustainability at Amazon, emphasised the company’s ambitious goal of becoming net-zero by 2040, would be achieved through carbon emissions reductions across the business including its vast network of global suppliers.

In a blog released alongside the Report Ms Hurst said that the company would collaborate with its suppliers to support their decarbonisation efforts adding, “Beginning in 2024, we’re updating our Supply Chain Standards to require suppliers to share their carbon emissions data with us and set carbon goals”.

Considering the immense scale of Amazon with a valuation of US $525 billion and a vast network of more than six million sellers using its platform, along with movie production studios and a grocery arm, the move is set to have a significant ripple effect across global supply chains. Suppliers worldwide will likely be prompted to report on their emissions and decarbonisation efforts if they wish to continue doing business with major corporations like Amazon.

Amazon’s move highlights the critical need for companies to scrutinize and reduce their carbon footprint. When reflecting on your organisation, what steps are you taking to decarbonise your operations?

Do you measure your CO2 and Greenhouse Gas emissions? Do you report or publish your results? Do you know your baseline for carbon emissions? Have you set emissions reduction targets? Is your data verified by a third party? Are you prepared for changes to Australia’s Modern Slavery Act? Do your suppliers provide their carbon emissions data and carbon reduction objectives?

Phew! That’s a lot to handle and most likely you answered ‘no’ and you are not alone.

When it comes to MRV (Measuring, Reporting and Verification), it’s helpful to engage with an expert who can keep you up to date with the demands of regulators, investors and customers seeking accurate - not estimated, carbon disclosure data.

For a confidential discussion on how we can help, contact us today.


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