E-commerce giant Amazon raises serious concerns over climate change in annual filing
In the 2023 financial filing released Friday, Amazon raised alarm over climate change potentially having a material effect on its business, stressing the crisis is likely to cause its results to fluctuate, eventually making it harder to sustain growth or reducing revenue.
The update highlights the deepening climate threats and the costs they pose to businesses across the globe. Amazon has vast operations spanning over 100 countries and regions, and employed a staggering 1.52 million people worldwide as of December 30.
Understanding Amazon’s fears over climate change impacts
The e-commerce giant said climate change could result in increasing operating costs due to more frequent extreme weather events or changes in the atmosphere, including rising temperatures and serious water shortages.
The company also underscored the possibility of increased investment requirements due to transition to a low-carbon economy; reduced demand because of changes in customer behaviour; and reputational damage resulting from perceptions of its environmental impact, reported CNBC.
Amazon has set out ambitious climate objectives for itself, including a commitment to become carbon neutral by 2040. It also seeks to use renewable energy sources to power its business operations by 2025 and has amassed a portfolio of over 500 solar and wind projects.
Supply chain disruptions, labour crisis due to climate change
In January, the EU’s Copernicus Climate Change Service confirmed 2023 as the hottest year on record. Economists have signaled that extreme weather caused by climate change has led to supply chain disruptions and labour crisis.
Last year, Amazon marked a reduction in its carbon emissions for the first time since it started disclosing the figure four years ago. It continues to face pressure from its corporate employees to address its notable environmental impact.
Read More: $2.4 trillion: Climate action demands money, and lots of it, says UN climate chief
