TOPLINE
After facing criticism about its environmental record in recent
years, Amazon is launching a new $2 billion venture capital fund—as part
of its “Climate Pledge” announced last September—that will invest in
clean energy and other technologies to reduce the impact of climate
change, The Wall Street Journal first reported.
KEY FACTS
Amazon’s carbon footprint increased last year but on Tuesday the Seattle-based tech firm announced
plans for an internal Climate Pledge Fund that will invest in companies
across a range of different industries, including transportation,
energy, battery storage, manufacturing and food and agriculture.
The fund is part of Amazon’s “Climate Pledge,” which was first introduced by CEO Jeff Bezos last September, with the goal of getting the company to “net-zero” carbon emissions by 2040.
As part of that promise, the company also hopes to meet the
carbon-reduction goals of the Paris Climate Agreement by 2040, ten years
ahead of schedule; President Trump pulled the U.S. out of the agreement
back in 2017.
Amazon said while its net sales increased 22% in 2019, its total carbon footprint increased 15% during the same period.
The new Climate Pledge Fund will “support the development of
sustainable and decarbonizing technologies” by investing in “visionary
companies whose products and solutions will facilitate the transition to
a low-carbon economy,” Amazon said in a statement.
Amazon described the fund’s $2 billion as “initial” funding that could grow over time, though the company didn’t provide details on a time horizon for the investments.
The company also announced
Tuesday that it expects to run on 100% renewable energy by 2025—five
years ahead of schedule (the Climate Pledge stated it would do so by
2030).
Crucial quote
“Companies from around the world of all sizes and stages will be
considered, from pre-product startups to well-established enterprises,”
Bezos said in a statement.
“Each prospective investment will be judged on its potential to
accelerate the path to zero carbon and help protect the planet for
future generations.”
Key background
Amazon and Bezos have faced criticism in the past over sustainability
and climate change policies. Amazon, which delivers over 1 billion
packages per year, has subsequently been criticized for its vast carbon l
footprint. Last year, the company faced mounting pressure from its
employees, thousands of whom submitted a proposal asking Bezos to
develop a comprehensive climate change plan. Since then, the company has
been ramping up its efforts: In February, for instance, Bezos pledged
$10 billion—nearly 10% of his own fortune
at the time—toward a new “Earth Fund” that will issue grants to
scientists and other organizations hoping to “preserve and protect” the
natural world.
Big number: $165 billion
Bezos is the world’s richest person, with a net worth of $165.2 billion, according to Forbes. He holds an 11% stake in Amazon, which he founded in 1994, as well as owns the Washington Post.
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