Amazon to Sell Carbon Credits to Suppliers, Customers

Amazon to Sell Carbon Credits to Suppliers, Customers

  • 20.03.2025 13:53
  • money.usnews.com
  • Keywords: Carbon Credits, Sustainability

Amazon is selling carbon credits to suppliers and customers to offset emissions, using strict industry standards. Participating companies must have net-zero targets and publicly report emissions. The Science-Based Targets initiative supports this approach for residual emissions.

Amazon ReportsAMZNsentiment_satisfied
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Estimated market influence

Amazon

Amazon

Positivesentiment_satisfied
Analyst rating: Strong buy

Amazon is leading the way in carbon credits and sustainability.

Flickr

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Analyst rating: N/A

Flickr is participating in Amazon's carbon credit scheme.

Seneca

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Analyst rating: N/A

Seneca is participating in Amazon's carbon credit scheme.

Corsair

Neutralsentiment_neutral
Analyst rating: N/A

Corsair is participating in Amazon's carbon credit scheme.

Context

Amazon to Sell Carbon Credits to Suppliers, Customers

Market Trends

  • Amazon's move: The company has started selling carbon credits to suppliers, business customers, and other companies for offsetting climate-damaging emissions.
  • Industry standards: Amazon uses industry-leading standards for its carbon credits and supports the development of rigorous standards where existing checks are inadequate.
  • Participating companies: Companies like Flickr, Seneca, and Corsair are already part of the scheme.

Business Impact

  • Investments in sustainability: Amazon has invested in projects to protect forests, restore degraded land, and advance carbon removal.
  • Net-zero requirements: Participating companies must have comprehensive net-zero targets covering their own emissions and supply chain, as well as publicly report greenhouse gas (GHG) emissions.

Competitive Dynamics

  • Promotion of sustainability: Amazon aims to promote additional investments in nature through its size and high vetting standards.
  • Science-Based Targets Initiative (SBTi): While SBTi supports the use of carbon credits for residual emissions, it does not endorse their broader use in meeting decarbonization targets.

Strategic Considerations

  • Bezos Earth Fund: Amazon's Bezos Earth Fund previously supported SBTi until November 2023.
  • Encouraging net-zero targets: The program is designed to encourage companies to adopt net-zero goals by requiring stringent conditions for participation.

This initiative highlights Amazon's strategic focus on sustainability and its potential influence on market trends, while also addressing the broader debate around carbon credit quality and effectiveness in driving decarbonization efforts.