An Amazon trailer is parked at the Amazon Air Gateway at Miami International Airport on September 26, 2023 in Miami, Florida.
Joe Radle | Getty Images
Amazon has warned investors that the climate crisis could have a material impact on its business.
In its risk factors section, 2023 Financial Report In Friday’s release, Amazon added language that says climate change could cause sales and operating results to fluctuate, making it difficult to maintain growth or leading to a decline in revenue.
This update reflects the growing threat of climate change and the costs it poses to businesses. Amazon included climate change as a risk factor for the first time. 2021 Annual ReportHowever, this year, expanded disclosure content was added.
The company said climate change is leading to “more frequent extreme weather events, increased operating costs due to climate-related changes such as rising temperatures and water scarcity, increased investment requirements as we transition to a low-carbon economy, and reduced energy demand.” He said there was a possibility of a connection. These include a decline in our products and services due to changes in customer behavior, increased compliance costs due to broader global regulatory and third-party requirements, and reputational damage resulting from awareness of our environmental impact. ”
Last September, the United Nations warned that the “window of opportunity is rapidly closing” to reduce fossil fuel emissions and ensure global warming stays below 2 degrees Celsius, the limit set by the 2015 Paris Agreement. ‘ he warned. In January, the United Nations Meteorological Agency Confirmed 2023 was the hottest year on record.
In addition to the humanitarian crisis, economists signaled Extreme weather events caused by climate change are causing supply chain disruptions and labor shortages.
Amazon has a vast footprint spanning over 100 countries and territories and currently employs 1.52 million people worldwide. December 30th.
The company has set itself ambitious climate goals, including a pledge to become carbon neutral by 2040. It also aims to power its business operations with renewable energy sources by 2025 and has amassed a portfolio of more than 500 wind and solar power projects around the world. .
The company plans to reduce its reliance on gasoline-powered delivery vans by introducing 100,000 electric vehicles. Rivian By 2030, vans will be on the roads.
In 2020, Amazon bought the naming rights to a professional sports arena in downtown Seattle and branded it the Climate Pledge Arena.
Last July, Amazon reduced its carbon emissions for the first time since it started reporting numbers four years ago.
The company is facing pressure from employees to address its environmental impact, including the way its warehouses and distribution network operate. Contributes to air pollution In communities of color where some of its facilities are located.
Lawmakers are investigating how Amazon manages its front-line workers during extreme weather following a deadly warehouse collapse in 2021. I also called For further heat wave measures.company Said Heat-related safety protocols are in place, and those protocols often exceed federal guidelines.
clock: How the new Rivian van has changed the hard work of Amazon delivery
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