Amazon warns climate change could disrupt its business in annual filing

Amazon warns climate change could disrupt its business in annual filing

Amazon trailers are parked at an Amazon Air gateway at Miami International Airport in Miami, Florida, on Sept. 26, 2023.

Joe Raedle | Getty Images

Amazon is warning traders that the climate disaster could have a fabric impact on its business.

In the danger elements part of its 2023 financial filing launched Friday, Amazon added language that claims climate change could trigger its gross sales and working outcomes to fluctuate, making it tougher to maintain development or ensuing in decreased income.

The replace displays the rising climate threats and the prices they pose to companies. Amazon first included climate change amongst its threat elements in its 2021 annual report, however this 12 months, it added expanded disclosures.

The firm stated climate change could result in “elevated working prices attributable to extra frequent excessive climate occasions or climate-related modifications, resembling rising temperatures and water shortage; elevated funding necessities related to the transition to a low-carbon financial system; decreased demand for our services on account of modifications in buyer habits; elevated compliance prices attributable to extra in depth and international laws and third-party necessities; and reputational harm ensuing from perceptions of our environmental affect.”

The United Nations last September warned of a “quickly closing window of alternative” to chop emissions brought on by fossil fuels and guarantee international warming stays beneath 2 levels Celsius, the restrict set by the 2015 Paris Accord. In January, the U.N. climate company confirmed 2023 was the most popular 12 months on document.

In addition to the humanitarian crises, economists have signaled excessive climate brought on by climate change has led to provide chain disruptions and employee shortages.

Amazon has huge operations spanning greater than 100 international locations and areas, and employed 1.52 million individuals globally, as of Dec. 30.

The firm has set out formidable climate objectives for itself, together with a dedication to being carbon impartial by 2040. It additionally goals to energy its business operations with renewable vitality sources by 2025, and has amassed a portfolio of greater than 500 wind and photo voltaic tasks globally.

The firm plans to cut back its reliance on gas-powered supply vans by placing 100,000 electrical Rivian vans on the street by 2030.

In 2020, Amazon purchased the naming rights to an expert sports activities enviornment in downtown Seattle, and branded it Climate Pledge Arena.

Last July, Amazon lowered its carbon emissions for the primary time because it started disclosing the determine 4 years in the past.

The firm has faced pressure from its company staff to deal with its environmental affect, together with how its warehouse and logistics community contributes to air pollution in communities of shade the place a few of its services are positioned.

Lawmakers have probed how Amazon manages its frontline workforce in excessive climate occasions, after a lethal warehouse collapse in 2021. Amazon staff have also called for extra warmth wave protections. The firm has said it has heat-related security protocols that usually exceed federal steering.

WATCH: How the tough job of Amazon delivery has changed with new Rivian vans

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