Amazon Leads in Renewable Energy Purchases

Amazon's Significant Investment in Renewable Energy

Last year witnessed a substantial increase in Amazon’s procurement of renewable energy. Approximately 100 new projects were added, expanding their total generating capacity to exceed 33 gigawatts.

This expansion positions Amazon as the leading corporate purchaser of renewable power, surpassing even Apple by over 10 gigawatts, as reported by BloombergNEF.

Portfolio Composition

Amazon’s renewable energy portfolio is characterized by a near-equal distribution between large-scale wind and solar farms and localized on-site solar installations.

The cumulative output from these projects is sufficient to provide electricity for approximately 8.3 million homes, according to Amazon’s estimates.

Impact on Emissions

Through strategic renewable energy and storage agreements, Amazon has successfully decreased its Scope 2 emissions – those associated with purchased electricity – despite the ongoing expansion of its data center infrastructure.

Challenges Remain in Carbon Footprint Reduction

Despite these advancements, Amazon still faces considerable challenges in achieving complete carbon neutrality. A significant portion of the company’s emissions falls under Scope 3.

Scope 3 emissions encompass activities where Amazon has limited direct control, such as employee air travel, leased properties, and construction projects.

Progress in Carbon Intensity

Amazon’s 2023 sustainability report indicates that total emissions reached their peak in 2021, following a period of sustained growth.

Furthermore, the company’s carbon intensity – calculated as greenhouse gas emissions per gross sales – has demonstrated a downward trend.

This metric is particularly relevant for rapidly expanding organizations, as it accounts for increased fossil fuel consumption during growth phases. Investment in zero-carbon energy sources helps to moderate the rise, or even reduce, carbon intensity.

Future Outlook

The release of Amazon’s 2024 sustainability report is anticipated to provide a more comprehensive assessment of the company’s progress towards its 2040 net-zero objective.