Key Impact Points:
- Amazon introduces high-integrity carbon credits to its U.S. supply chain partners, enterprise customers, and Climate Pledge signatories.
- Credits are restricted to organizations with verified net-zero targets, regular emissions reporting, and credible decarbonization strategies.
- Initial customers include Flickr, Seneca Group, Ryan Companies, Corsair, Steelcase, and Slalom.
Amazon’s New Carbon Credit Initiative
Amazon has begun offering “high-integrity science-based” carbon credits through its Sustainability Exchange resource hub, aimed at accelerating corporate climate action. Announced on March 19, these credits allow eligible companies to support nature-based projects and advanced carbon removal technologies.
The credits are accessible exclusively to Amazon’s U.S. supply chain partners, enterprise customers, and signatories of The Climate Pledge, provided they measure and report their Scope 1, 2, and 3 emissions and demonstrate robust decarbonization strategies aligned with climate science.
High Standards and Transparency
Amazon Chief Sustainability Officer Kara Hurst acknowledged historical challenges in the voluntary carbon market, noting transparency and credibility issues have fostered skepticism. However, Hurst emphasized, “the science is clear.”
“We must halt and reverse deforestation and restore millions of miles of forests to slow the worst effects of climate change,” said Hurst. “[Amazon is] using our size and high vetting standards to help promote additional investments in nature, and we are excited to share this new opportunity with companies who are also committed to the difficult work of decarbonizing their operations.”
Confidence from Initial Partners
Initial participants include online image storage platform Flickr, real estate advisory Seneca Group, construction firm Ryan Companies, electronics firm Corsair, furniture manufacturer Steelcase, and consulting firm Slalom.
Executives from these companies highlighted Amazon’s credibility and stringent evaluation processes.
Kristine Santa-Coloma Rohls, Chief People Officer at Slalom, expressed confidence: “Sourcing high-quality credits is a must for us, and with a trusted partner like Amazon by our side, we’re excited and confident that our move into the voluntary carbon market will truly make a difference where it matters most.”
Flickr’s President and COO Ben MacAskill added, “Amazon’s expertise and scientific rigor” give confidence in achieving genuine climate impact through their carbon credits.
Rigorous Evaluation and Commitment
Amazon’s rigorous assessment criteria consider not only emissions reductions but also broader social benefits. The company’s approach starts from first principles, “rather than default to current standards,” ensuring ongoing revisions as climate science and technology evolve.
Amazon’s February blog post clarified: “While we aim for comprehensive and accurate impact evaluation, methodologies we use may overestimate impact in some areas, and underestimate in other areas.”
Limited Quality Carbon Credits Available
Amazon estimates that fewer than 5% of global voluntary carbon credits meet its strict quality standards. The company’s strategy currently emphasizes reducing tropical deforestation, land restoration, and technical carbon removal solutions.
This initiative aligns with Amazon’s commitment to net-zero emissions by 2040, notably excluding carbon credits from counting towards its own decarbonization goals, consistent with Science Based Targets initiative (SBTi) recommendations.
Related Article: Amazon Sidesteps Its Own Global Standard for Carbon Offsets
