Amazon’s Carbon Emissions Rise Again Amid AI and Logistics Expansion

Amazon's carbon emissions increased 6% in 2024, snapping a two-year pattern of falling growth and raising fresh questions about the climate goals of the technology giant. Amazon's 2024 sustainability report stated overall greenhouse gas emissions increased from 64.38 million metric tons in 2023 to 68.25 million metric tons in 2024. It is Amazon's first year-over-year increase since 2021, when emissions peaked at 71.54 million metric tons.

The increase in emissions defies Amazon's commitment in 2019 to have net-zero carbon emissions by 2040. A decade into the target, the company's emissions increased more than 33%, suggesting the firm is yet to reconcile its fast growth with green responsibility. The key causes of the increase are the growth of its logistics business and build-out of energy-consuming artificial intelligence infrastructure.

Amazon's expansion into AI has significantly increased electricity use, as the retailer rushes to keep up with competition from companies such as Microsoft and Google. Amazon will spend $100 billion on its delivery network and data centers in 2025. Contrast that with Microsoft, which last year spent $80 billion on similar infrastructure. These record investment figures will propel energy demands even further in the near future.

Electricity consumption alone contributed 1% to emissions last year, equaling the energy to run and power large-scale data centres. While Amazon is now investing in nuclear energy as one means of addressing growing demand, there is doubt surrounding the ability to do so in a timely manner and on the scale required.

Though the company decreased carbon intensity — emissions per unit of revenue — by 4%, the total level of emissions has nevertheless increased. Amazon is contending this is a indication it is becoming more efficient with growth, yet those tracking the climate are worried about the trendline in total emissions.

Amazon's delivery network is also the largest source of its greenhouse gas emissions. Although the company currently has more than 31,400 electric delivery vans on the road worldwide, courtesy of a deal with electric vehicle maker Rivian, the good news is being counterbalanced by growth in rural markets and more last-mile delivery activity. These elements have grown the delivery network and enhanced energy consumption, and trimming emissions overall is being made tougher.

There have been internal criticisms as well. An Amazon staff climate action group has criticized Amazon for exaggerating its renewable energy accomplishments and its overdependence on fossil fuels, specifically gas. They pointed to facts that in places where more than 70% of Amazon's US data centers are located, the majority of electricity is still generated from gas. New fossil fuel-based plants are also being constructed to satisfy the company's increasing energy demands.

Investors are asked by the company to resolve this in a statement that requested Amazon to release a report explaining the carbon footprint of its AI-driven growth. The requested proposal lacked enough votes to pass.

Amazon remains committed to its infrastructure efficiency and renewable energy efforts but development on AI technology and logistics seems to be gathering momentum in comparison to these efforts as well. As the deadline for 2040 net-zero approaches, investors are increasingly questioning whether or not the company's current activities will prove sufficient to enable it to achieve its climate objectives.

The most recent reports say Amazon's growing presence of tension between business growth and climate ambitions. With the company investing in cleaner energy consumption and unit-revenue-per-emission reduction, though, its total carbon footprint continues to increase. The trend has increased calls for more drastic action and quicker adoption of clean energy solutions in order for the company to achieve its long-term climate ambitions.

Source: Tech Xplore
Credit: KnowESG, Tech Xplore