Amazon launches a carbon credit service for qualified companies. (Photo: iStock)
Amazon, the retail giant in the U.S., announced the launch of its carbon credit service through its Sustainability Exchange platform on March 19.
This service aims to help its supply chain partners achieve decarbonization. Six companies, including cloud-based image storage platform Flickr, have already joined the service, responding to Amazon’s goal of reaching net-zero carbon emissions.
Amazon helps suppliers buy high-quality carbon credits
Amazon emphasized that high-quality carbon credits provide funding for reduction actions, help decrease greenhouse gases in the atmosphere and are an essential mechanism for assessing and verifying the environmental impact of human activities.
However, producing high-quality carbon credits is complex, and it is often difficult for businesses to obtain them and ensure their environmental effectiveness. To assist in this process, Amazon will leverage its resources and scale.
In recent years, the voluntary carbon market has been embroiled in "greenwashing" issues, including allegations of exaggerating the benefits of carbon reduction. To avoid such problems, Amazon works with third-party experts to monitor and measure the quality of carbon credits, ensuring that their procurement process follows strict verification methods and is regularly reviewed in light of technological advancements, rather than blindly adhering to current standards.
The Carbon Credit Service is available exclusively to suppliers, business partners, and signatories of the Climate Pledge. While there is no minimum procurement threshold, companies must meet three basic conditions:
- The company must set a net-zero target no later than 2050, and the emission reduction must include scope 1, 2, and 3.
- The company must regularly measure and publicly disclose its carbon emissions.
- The company must commit to implementing decarbonization strategies and align with the latest climate science standards.
Amazon fuels decarbonization with nature-based credits
Amazon's press release indicates that it will primarily focus on nature-based carbon credits, such as reducing deforestation and restoring forests. While Amazon may later include carbon credits from carbon removal technologies, any credits obtained through Amazon will be retired by the company itself.
In 2019, Amazon and Global Optimism launched the Climate Pledge, committing to achieving net-zero emissions by 2040. Over 550 companies have joined the pledge.
Currently, six companies, including those that have signed the Climate Pledge, have responded to the carbon credit service: Flickr, real estate consultancy Seneca Group, commercial real estate company Ryan Companies, consumer electronics giant Corsair, office furniture manufacturer Steelcase, and business technology consultancy Slalom.
Compared to other tech giants such as Microsoft and Google, which have bought large amounts of carbon credits independently, Amazon launched the Sustainability Exchange last year to provide free decarbonization tools and resources for its partners.
Currently, Amazon is taking the rare step of acting as a middleman for carbon credits, ensuring the quality of carbon credits for suppliers to accelerate the decarbonization of their supply chains.
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