Amazon (NASDAQ:AMZN) is constantly increasing its attention toward decreasing its carbon emissions across all of its operations down to zero. This shift in focus comes on the heels of the company’s transition away from fossil fuels and toward sustainable energy.
This is clear from Amazon’s most recent agreement with Plug Power, which states that the latter company will supply Amazon with green hydrogen by 2025. This hydrogen will be used to power Amazon’s transportation and building activities.
The agreement will offer an annual power supply sufficient to run 30,000 forklifts or 800 heavy-duty trucks, whichever comes first.
As a result of this most recent transaction, Amazon is working toward its goal of switching to the usage of green hydrogen rather than grey hydrogen, diesel, and other fossil fuels.
We believe that by using green hydrogen, it will be possible to lower its carbon footprint, which will, in turn, strengthen its efforts toward reaching the Climate Pledge that it has made.
Amazon’s Aggressive Stance
Notable is the company’s continued commitment to achieving net-zero carbon emissions by the year 2040.
One other thing going in Amazon’s favor is that the company plans to run all of its operations on renewable energy. The year 2030 served as the original target date for accomplishing the goal; however, it is now anticipated that the goal will be accomplished in 2025.
Because green hydrogen will assist Amazon in decarbonizing its operations, the most recent step, which makes it an early adopter of green hydrogen, is likely to help the company meet the aims mentioned above more expediently.
In addition, Amazon, recognized as the company that has invested the most money in renewable energy, has 274 different renewable energy projects worldwide.
The company’s climate-friendly program, which concentrates on environment-friendly items, is still a significant positive aspect of the business. Customers can read the Climate Pledge Friendly label on more than 25,000 different products once the new initiative is fully implemented.
Amazon’s Mission to Achieve Zero Carbon Emissions Is Gaining Momentum
The movement for carbon-free practices is gaining significant support within the technology industry.
Not just Amazon but also other major corporations such as Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), and KLA Corporation (NASDAQ:KLAC) are all taking steps to reduce their overall carbon footprints and significantly cut down on their monthly energy expenses.
Notable is that Alphabet has adopted an aggressive three-pronged plan, which consists of increasing energy efficiency, purchasing renewable energy, and offsetting carbon emissions. Is particularly noteworthy that Google’s division has been carbon neutral since 2007. Google has set a goal to become carbon-neutral by the year 2030.
The plan for Microsoft to become carbon neutral by the year 2030 is gaining momentum. Microsoft has set a goal to eliminate all the pollutants it has produced since the company was founded in 2050.
Until then, KLA has vowed to run its worldwide operations solely on energy derived from renewable sources by the year 2030. Specifically, KLA aims to achieve a cumulative reduction of 46% in Scope 1 and Scope 2 emissions by 2030, compared to its 2019 baseline.
Despite this, we believe that AMZN’s most recent step will unquestionably give it an advantage in the ongoing competition to become carbon neutral.
Earlier this month, Amazon increased sales 7% year over year to $121 billion, beating estimates of $119 billion. Its cloud division, also known as Amazon Web Services, led the revenue growth, as sales rose 33% to $19.7 billion in that business. Amazon ended the second quarter with an operating profit of $3.3 billion, again beating estimates of $1.75 billion.
Since the start of the year, Amazon stock has dipped nearly 25%.
Featured Image: Megapixl @Brodogg1313
