The Science Based Targets initiative (SBTi), a prestigious UN endorsed body tasked with validating corporate emissions reduction plans, says it is removing Amazon from its list of companies committed to meeting climate targets, noting it has not implemented credible measures.
Since announcing its Climate Pledge in 2019 to eliminate or offset all of its emissions by 2040, Amazon has increased them by no less than 40%, reflecting the enormous difficulties of decarbonizing an activity such as e-commerce and logistics. The company is trying to electrify its delivery vans and to eliminate fossil fuels from its energy sources, but its sheer size means that it is struggling, for example, with something as simple as the ability to manufacture electric vans, or to supply certified green energy.
So far, Amazon has only managed to lower its emissions in 2022, and that was simply due to a slowdown in its activity. So SBTi has effectively downgraded Amazon’s efforts to greenwashing, adding its name to a list of shame that includes 120 other companies, out of a total of 5,700 that have published and audited their targets, stripped of any environmental credibility.
Why does it matter if SBTi takes you off its list? Because it is one of the most influential organizations used by companies to certify their environmental, social and governance (ESG) criteria, which means that Amazon could see some investors pull out. BlackRock, the world’s largest asset manager, which has long expressed its intentions to withdraw from companies that do not have clear environmental guidelines, has a significant stake in Amazon, and ESG fund managers in the European Union own around 2% of Amazon’s outstanding shares. While massive divestment is unlikely, its share price is likely to fall.
Decarbonizing is not easy. But if a company announces it is going to do so and intends to make it a priority, it should at least be able to stabilize its emissions or reduce them, even if at a slower rate than required to meet its targets. But when emissions actually increase by 40%, it makes the company look as though profits are the priority and that it was lying about its environmental concerns. But it now seems that lies in this area, even if they are unfortunately completely indifferent to a large part of society, are going to incur a high price.
(En español, aquí)
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This post was previously published on MEDIUM.COM.
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