Last year, the SEC proposed new rules that would require large publicly traded companies to track and disclose Scope 3 emissions (check out our previous blog post on emission scopes to learn more). Now, one of the world’s largest retailers has announced they will soon require suppliers up and down their supply chain to report on their emissions.
Amazon has been making strides on sustainability for years, but most of their efforts have been focused on aspects of the business that are under their immediate control. Some examples include increased utilization of renewable energy like wind and solar, reducing excess packaging and switching to electric delivery vehicles (more than 9,000 vehicles globally in 2022). Now, Amazon is turning its attention to emissions that come from the parts of its business over which they have little to no control—specifically, supply chain emissions.
Details are limited at this stage, but Amazon’s head of global sustainability summarized that the company would be updating its supply chain standards for 2024 to require suppliers to not only share carbon emissions data but also, importantly, to set goals. The latter requirement on goal setting was not further explained, but the implication is that suppliers will need to start planning and setting targets for reducing emissions in their own businesses. This move is sure to make waves within the Amazon supply chain universe, but it will likely also have a ripple effect leading to other companies following suit with similar requirements in the near future.
These new requirements will undoubtedly be viewed as a burden by many suppliers, but Amazon seems aware of this and has a plan to help. Their announcement stated that they would leverage their scale, funding and access to innovation to provide tools and guidance to suppliers in areas such as renewable energy and sustainable sourcing.
So, what does this mean if you’re a transportation or other supply chain partner? In short, this move and the pending SEC rule changes are signs of a bigger shift in emissions accountability, and you need to start planning now. If you’re not sure where to start, Guttman Renewables can help! Get in touch today to learn more about our services—from building a plan for emissions reporting and setting realistic targets to options for meeting those targets using tools like renewable fuels and carbon offsets.
