The world’s largest online retailer and a top cloud provider now sits at the centre of two contradictory forces: a global push to decarbonise and a generative AI boom that is driving up energy use. The same engines that are reshaping commerce and cloud computing, especially generative AI, are now the biggest test of whether big tech can decarbonise quickly enough to keep its climate promises.

In 2024 Amazon’s absolute carbon footprint rose 6 percent to 68.25 million metric tons of CO2 equivalent, reversing two years of modest declines, even as its carbon intensity fell another 4 percent and is roughly 40 percent lower than in 2019. That tension, between volume and efficiency, sits at the heart of Amazon’s climate narrative and frames what the company is now trying to do differently.

The AI And Logistics Emissions Puzzle

Across the sector, AI data centres and logistics networks are driving what grid operators describe as a “once in a generation” step change in power demand, with some U.S. regions expecting electricity consumption to double by the end of the decade. Amazon is no exception, and its own report explicitly links the 2024 emissions uptick to data centre build out and fuel use by its delivery providers.

Critics have seized on this reversal. Campaign group Stand.earth points out that Amazon’s direct Scope 1 emissions have grown sharply since 2019, even as the company has positioned itself as a climate leader and co-founder of The Climate Pledge. At the same time, Amazon highlights that carbon emissions per dollar of gross merchandise sales and per shipped unit have fallen substantially since 2019, helped by network optimisation, regionalised inventory and a pivot to lower carbon energy.

💡Amazon reports that carbon emissions per shipped unit have fallen by roughly one third since 2019, even as overall emissions have risen and the business has grown.

“Pledge Then Plan”: Jassy’s Net Zero Narrative

Amazon’s pathway is anchored in its commitment to reach net zero carbon across global operations by 2040 through The Climate Pledge, a target that now also binds more than 540 other signatories. CEO Andy Jassy has been unusually candid about how much of that roadmap had to be built on the fly, telling an audience at Climate Week in New York, “When we announced the climate pledge in 2019, we did not really have a plan on how we would get there. We knew how we would get a good chunk of the way there, but there is still a lot of innovation left to happen.”

That innovation agenda now includes a 2 billion Climate Pledge Fund backing low carbon materials, fuels and carbon removal, as well as long term procurement of renewables and emerging nuclear capacity.

As Jassy put it in a later discussion about the company’s energy strategy, “If you want to get to carbon free, you are gonna have to invest in alternative energy.”

The strategic bet is that Amazon’s scale in cloud, logistics and procurement can lower the unit cost of decarbonisation technologies and then open them up to the rest of the economy.

Rewiring The Grid Around AWS

On the power side, Amazon has already delivered one of its headline goals ahead of schedule. In 2024, for the second consecutive year, the company matched 100 percent of the electricity consumed by its global operations with renewable energy, five years ahead of its original 2030 timeline. It remains the world’s largest corporate purchaser of renewable energy, with 621 renewable projects representing about 34 gigawatts of capacity that can generate roughly 91,000 gigawatt hours of carbon-free electricity annually.

Those renewables are now being supplemented by battery storage and nuclear. Amazon signed its first European battery energy storage system power purchase agreement in Spain, pairing rooftop solar with storage to avoid around 500 metric tons of CO2 each year and provide grid flexibility during peak demand. Through the Climate Pledge Fund, it also led a 500 million dollar round in X Energy, which aims to deploy up to 960 megawatts of advanced small modular reactors to the U.S. grid by 2039, while a separate agreement with Talen Energy will site a data centre campus next to an existing nuclear plant in Pennsylvania.

💡Amazon’s current clean energy portfolio, including 302 utility scale wind and solar projects and hundreds of onsite rooftop systems, is large enough on paper to power more than 7 million U.S. homes equivalent each year.

AI As Both Load And Lever

The arrival of generative AI has magnified concerns about energy demand, but Amazon is also positioning AI as a decarbonisation tool in its own right. In the foreword to the 2024 report, Chief Sustainability Officer Kara Hurst argues that “sustainability is not separate from our customer obsession, it is an extension of it,” framing AI-enabled efficiency as core to Amazon’s value proposition rather than an ESG bolt on.

That logic shows up most clearly in AWS. The cloud arm reports a global power usage effectiveness (PUE) of 1.15, better than both the public cloud average and typical on premises enterprise data centres, and cites independent research suggesting AWS infrastructure can be up to 4.1 times more energy efficient than traditional data centres, cutting optimised workloads’ carbon footprint by as much as 99 percent. At the hardware level, purpose-built Graviton chips use up to 60 percent less energy than comparable instances; by the end of 2024 more than 70,000 customers were using them, avoiding an estimated 12,000 metric tons of CO2 equivalent, while Amazon’s own internal migration avoided roughly 71,000 metric tons.

Hurst has been explicit about using AI on the grid side too, saying, “AI is an important tool that is already helping our society make the transition to carbon-free energy and address climate change at scale,” in a piece describing how AWS analytics and machine learning are being used to optimise solar and storage assets. That same toolkit is being deployed inside Amazon’s operations to optimise routing, detect water leaks and reduce packaging and returns.

Decarbonising The Last Mile

If AWS is Amazon’s proving ground for low-carbon infrastructure, the delivery network is the most visible test of its climate claims. By the end of 2024, more than 31,400 electric delivery vans and other EVs were in service globally, delivering around 1.5 billion packages, and Amazon had already met its goal of deploying 10,000 EVs in India one year ahead of schedule. In early 2025 it went further, ordering over 200 heavy-duty electric trucks from Mercedes-Benz Trucks for European routes that are expected to move roughly 338 million packages annually once fully operational.

At the same time, the company is redesigning how packages move through the network. By regionalising inventory and encouraging customers to consolidate orders, Amazon estimates that U.S. Prime members avoided about 452 million delivery trips in 2024, which translated into more than 494 million fewer boxes and roughly 335,000 metric tons of CO2 equivalent avoided. Sustainable aviation fuel volumes remain relatively small, but the company procured 3.7 million gallons of blended SAF in 2024 and continues to experiment with renewable diesel for backup generators and other transport applications.

💡Since 2019, Amazon has cut delivery emissions per unit significantly while simultaneously increasing same or next day deliveries, showing how network design and electrification can decouple speed from carbon, at least in part.

From Plastic Pillows To Circular Systems

One of the report’s clearest success stories is packaging. In 2024 Amazon eliminated plastic air pillows from all North American delivery packaging and reported a 16.4 percent reduction in total plastic packaging globally compared with 2023, lowering usage from about 88,700 to 74,100 metric tons. Since 2020, the company estimates it has avoided more than 152,000 metric tons of single-use plastic through design and material shifts, while increasing the share of paper-based, curbside recyclable solutions.

💡Across North America, 56 percent of fulfilment centres no longer ship orders in plastic delivery packaging, and automated systems alone helped avoid 134 million single use plastic bags in 2024.

Circularity extends into AWS as well. By designing servers for reuse and systematically harvesting components, AWS has avoided buying more than 500,000 new hard drives since 2023, resold 11.5 million components on secondary markets in 2024, and sourced 16 percent of its spare parts from internal reuse, which it estimates has abated about 110,000 tons of CO2 equivalent. The flagship reCycle hub in Ireland now diverts all processed equipment from landfill, with 99 percent going to reuse or recycling and the remaining 1 percent to energy recovery.

Water And Nature As Hard Constraints

Water is emerging as a second hard constraint alongside carbon, particularly for data centres in water stressed regions. AWS has committed to becoming water positive by 2030, meaning it will return more water to communities and the environment than its direct operations use, and reports that it is already 53 percent of the way toward that goal, up from 41 percent a year earlier. In 2024 AWS achieved a global water use effectiveness of 0.15 litres per kilowatt hour, a 17 percent improvement year on year and a 40 percent gain since 2021, helped by new direct-to-chip liquid cooling for high density AI workloads that reduces mechanical energy use without increasing water intensity.

Beyond efficiency, Amazon had 24 data centres using recycled water for cooling in 2024, with agreements in place that preserve over 4 billion litres of fresh water for communities, and it is investing in 23 water replenishment projects globally that are expected to return more than 7 billion litres per year once fully operational, 4.3 billion litres of which were already delivered in 2024. In India, the company has gone further, committing to be water positive across all direct operations by 2027 and funding restoration of critical lakes near Bengaluru and Hyderabad to boost groundwater recharge.

Human Rights, Supply Chains And The Social Ledger

On the social side of ESG, Amazon’s 2024 reporting shows a more systematic attempt to integrate human rights and labour standards into its logistics and supplier ecosystem. The company conducted 3,639 audits across suppliers of Amazon branded products, third party labour, services and not for resale goods in its logistics, warehousing and construction supply chain, with 1,695 of those focused specifically on labour and service providers in logistics and construction. Its Supply Chain Standards, now available in 23 languages and supplemented with a detailed manual, set expectations on forced labour, recruitment fees and working hours that go beyond local legal baselines in many markets.

Amazon has also expanded its human rights and environmental due diligence to 10 major business units, including AWS, Stores, Grocery and Corporate Real Estate, using a saliency based approach that looks at risks to people first rather than simply risks to the company. Externally, civil society groups continue to push hard on gaps, from warehouse safety to algorithmic management and freedom of association, but the 2024 framework summary shows at least a clearer alignment with UN Guiding Principles and emerging EU style due diligence expectations.

Where The Carbon Curve Still Points Up

For boards, investors and policymakers, the most important signal in Amazon’s 2024 sustainability report is that even a company with unmatched purchasing power in renewables, a rapidly electrifying fleet and deep in house engineering capacity has not yet bent its absolute emissions curve downward in the age of AI. Bloomberg notes that Amazon’s total emissions in 2024 were still about one third higher than when it first pledged to eliminate them by 2040, and external commentators warn that method changes and partial system boundaries may understate the true footprint.

The company’s response is to double down on system level levers: using its Climate Pledge Fund to catalyse lower carbon steel and concrete for data centres and warehouses, co-founding initiatives such as Laneshift to electrify freight corridors in India, Latin America and Mexico, and launching the Amazon Sustainability Exchange as an open platform for suppliers and peers to access playbooks, tools and, increasingly, vetted carbon credits.

💡By 2024, 549 companies across 46 countries and 60 industries had joined The Climate Pledge, extending Amazon’s decarbonisation experiment far beyond its own balance sheet and into the broader real economy.

Signals For Sustainability Leaders And Investors

For sustainability professionals, Amazon’s latest disclosures offer three takeaways. First, efficiency and clean power procurement can materially lower carbon intensity, but they will not be enough on their own to offset the growth in AI, logistics and digital demand, even for the best resourced players. Second, the frontier of climate action inside large corporates is moving upstream into materials, grid design and water systems, and downstream into product design and customer behaviour, areas where Amazon is now experimenting at industrial scale.

Third, scrutiny on credibility will only increase. External campaigners are already challenging Amazon on Scope 3 coverage, science-based targets alignment and the use of book and claim instruments and carbon credits. The company’s choice to open up its methodologies, share tools through the Sustainability Exchange and invest in higher integrity carbon and nature frameworks is therefore not just altruistic; it is a hedge against accusations of greenwash and a signal to peers about where the bar is heading.

For an industry wrestling with the paradox of more compute and more convenience colliding with finite planetary limits, Amazon’s trajectory shows both how far operational levers can take a company, and how much harder the next phase of decarbonisation will be.

Source: Amazon Sustainability Report 2024

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