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Is Amazon's Net Zero Goal Enough to Offset Its Financial Hiccups?

Amazon’s latest earnings report reveals a mixed bag: while the retail giant fell short of revenue and advertising expectations, its cloud business, AWS, exceeded forecasts.

As the company navigates these financial setbacks, its commitment to environmental sustainability stands out. Amazon is ramping up its efforts to tackle its carbon footprint and achieve net zero carbon by 2040, even as it grapples with some challenges in its operations.

Earnings Snapshot: AWS Shines Amid Financial Hiccups

Amazon reported Q2 revenue of $148 billion, slightly under the $148.8 billion forecast, with its advertising segment also missing expectations at $12.8 billion versus $13 billion. However, its cloud business, Amazon Web Services (AWS), exceeded expectations with $26.3 billion in revenue. 

CFO Brian Olsavsky noted AWS is on track for over $105 billion annually and that Amazon has invested over $30 billion in the first half of the year to support AI and cloud service expansion, with increased investments expected in the second half.

Despite Amazon reporting earnings per share (EPS) of $1.26—beating estimates of $1.04 and nearly doubling profits from the previous year—investors focused on the report’s weaknesses.

Amazon’s stock dropped over 11% in early trading on Friday after its Q3 forecast missed expectations. The company projected sales of $154 billion to $158.5 billion, below the analyst forecast of $158.43 billion. Expected operating income of $11.5 billion to $15 billion fell short of the $15.2 billion anticipated. 

Behind the financial misfits lies the retail giant’s success in tackling its environmental and carbon footprint. 

Amazon’s Carbon Footprint Progress and Challenges 

In 2023, Amazon reduced its absolute carbon emissions by 3%, driven by an 11% decrease in Scope 2 emissions from electricity and a 5% drop in Scope 3 emissions. However, Scope 1 emissions, related to direct operations, increased by 7% due to higher transportation fuel use.

Despite these increases, Amazon’s carbon intensity improved for the fifth consecutive year, dropping 13% from 2022.

Amazon carbon footprint 2023
Chart from Amazon’s 2023 Sustainability Report

Amazon’s Scope 1 emissions, which come from its logistics and transportation fleet, rose by 7% and now represent 21% of its total footprint. This increase is linked to higher package volumes and the growth of Amazon’s logistics network. Efforts to reduce emissions per package include optimizing packaging through AI and reorganizing delivery routes to cut down on travel distances, saving nearly 16 million miles in 2023.

For Scope 2, which covers emissions from electricity used in Amazon’s facilities, there was an 11% decrease, representing 4% of the total footprint. This reduction was achieved by using renewable energy sources, including wind and solar. 

In 2023, Amazon matched 100% of its global electricity consumption with renewable energy—seven years ahead of its 2030 target. The company’s renewable energy portfolio expanded to 28 gigawatts, making Amazon the largest corporate buyer of renewable energy for the fourth consecutive year.

Scope 3 emissions, which include those from supply chain activities, decreased by 5% and account for 75% of Amazon’s total carbon footprint. This reduction resulted from improvements in building construction practices and a shift toward using Amazon’s logistics providers. 

The online retailer is focusing on reducing embodied carbon in construction by using lower-emission materials, resulting in a decrease of 79,500 metric tons of CO2e from new projects.

Amazon’s Bold Strategy Towards Net Zero

Amazon is committed to achieving net zero carbon emissions by 2040 through a multi-faceted approach involving investment, innovation, and collaboration. The company’s strategy includes reducing its carbon footprint, engaging with suppliers, and investing in carbon-neutralization and carbon-free energy technologies.

Amazon net zero 2040 journey

At the end of 2023, The Climate Pledge, an initiative Amazon co-founded, included 473 signatories aiming for net zero carbon emissions by 2040. The pledge has seen increased collaboration, with five new joint projects launched in 2023. Amazon supports this effort through its $2 billion Climate Pledge Fund, investing in breakthrough technologies that can lower the cost of decarbonization.

Carbon Neutralization

Amazon’s priority is to eliminate emissions within its operations and invest in carbon-neutralization efforts. This includes reducing emissions through targeted investments and partnerships, focusing on three key areas: 

The company engages in initiatives such as the Lowering Emissions by Accelerating Forest Finance (LEAF) Coalition, which mobilizes funds to protect tropical forests and support community programs. Amazon also funds projects like SeloVerde, an AI tool for deforestation traceability, and supports agroforestry projects in the Amazon rainforest to enhance carbon storage and community livelihoods.

Carbon-Free Energy

Amazon’s net zero strategy includes transitioning to carbon-free energy sources, such as wind, solar, and nuclear power. The company has set ambitious goals to match 100% of its electricity consumption with renewable energy and invest in wind and solar capacity equivalent to the energy used by its Echo, Fire TV, and Ring devices. 

Amazon’s efforts extend to energy efficiency, with innovations aimed at optimizing operational energy use and reducing energy consumption. The company is also expanding battery storage to support grid decarbonization and exploring diverse carbon-free energy sources to ensure a resilient and sustainable energy supply.

Amazon carbon free energy

Supplier Engagement and Technology Investment

A significant part of Amazon’s strategy involves working with suppliers to reduce emissions across the supply chain. The retail and cloud giant has identified its highest-emitting suppliers, representing over 50% of its Scope 3 emissions, and expects them to provide decarbonization plans. 

The company has launched the “Amazon Sustainability Exchange,” a platform to share resources and guidelines to help other companies achieve net zero carbon emissions. This engagement is crucial as Scope 3 emissions are beyond Amazon’s direct control but play a significant role in the overall carbon footprint – over 50% of Scope 3 emissions.

Amazon continues to invest in emerging technologies to advance its sustainability goals. This includes supporting direct air capture (DAC) technologies that remove CO2 from the atmosphere and investing in modular DAC systems to drive down costs and scale up carbon removal efforts. 

Overall, behind financial hiccups, Amazon continues to invest in carbon abatement projects and innovative technologies, such as electric vehicles and energy-efficient chips, to drive long-term decarbonization and enhance sustainability across its operations.

The post Is Amazon’s Carbon Goal Enough to Offset Its Financial Hiccups? appeared first on Carbon Credits.

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The Strategic Case for Nature-Based Carbon Investments

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Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.

1. Define the sourcing problem before choosing a project

Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.

This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.

CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.

2. Develop nature-based carbon investments around the actual supply chain

The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?

Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.

Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.

The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.

3. Compare the proposal with other ways to protect supply

WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.

The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.

The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.

The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.

4. Establish what the carbon outcome could count toward

Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?

Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.

SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.

For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.

Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.

5. Build a financial case that survives weaker assumptions

Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.

Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.

Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.

A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.

6. Fund a pilot with a clear expansion decision

Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.

Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.

Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.

This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.

Discuss a sourcing opportunity with CCC

Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.

Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.

Sources

  1. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
  2. World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
  3. Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
  4. United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
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Carbon Footprint

How to buy plastic credits, and what to check before you do

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A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.

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Carbon Footprint

EU carbon credit claims after 27 September 2026

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EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.

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