Ameer Randolph
Amazon's carbon emissions are a highly debated topic, with the company refusing to disclose its energy usage despite rising pressure from employees and the public. In 2019, Amazon's carbon dioxide emissions were approximately 44.4 million tons, a figure that rose by 15% to about 51.1 million tons in 2020. With its vast operations, including data centers, warehouses, delivery trucks, and cargo jets, Amazon's energy consumption and carbon footprint are undoubtedly significant. However, the company's lack of transparency makes it challenging to determine the exact amount of fuel burned per year.
| Characteristics | Values |
|---|---|
| Carbon dioxide emissions in 2018 | 44.4 million tons |
| Carbon dioxide emissions in 2019 | 51.1 million tons |
| Amazon Web Services revenue in 2020 | $45.4 billion |
| Amazon's share of the domestic e-commerce market | 5% |
| Amazon Prime membership cost per month | $14.99 |
| Amazon Prime membership cost per year | $139 |
| Amazon Prime membership discounted cost for young adults and college students per month | $7.49 |
| Amazon Prime membership discounted cost for young adults and college students per year | $69 |
| Amazon Prime membership discounted cost for government assistance recipients per month | $6.99 |
| Average savings for Amazon Prime members on fuel per year | $70 |
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What You'll Learn
Amazon's carbon dioxide emissions
Amazon has been criticised for its lack of transparency regarding its energy consumption and carbon emissions. While other major tech companies publish annual reports detailing their carbon footprints, electricity use, and overall energy consumption, Amazon has historically refused to disclose how much energy it uses.
In 2019, Amazon revealed that its carbon-dioxide emissions totalled about 44.4 million tons in 2018, and 51.1 million tons in 2019, a 15% increase. This is comparable to the emissions of oil giant Chevron, which emitted 60 million tons of CO2 in 2019. As Amazon handles more goods and services, its emissions are likely to increase as a result of the greater energy demands of its data centres, warehouses, delivery trucks, and cargo jets.
Amazon Web Services (AWS), a subsidiary of Amazon, is the world's biggest public-cloud infrastructure business, serving high-profile brands such as the NFL and Netflix, as well as the Department of Defense and the Central Intelligence Agency. AWS is estimated to own about half of the world’s public-cloud infrastructure business and is growing by about 30% per year. Despite its enormous influence and market value, Amazon has been criticised for its lack of transparency regarding its energy use and carbon emissions.
While Amazon has not disclosed its total energy consumption, it has introduced initiatives to reduce its environmental impact. Amazon has implemented various measures to increase energy efficiency and invest in renewable energy sources. In addition, Amazon has also introduced incentives for its customers to reduce their carbon footprint, such as the introduction of fuel savings for Amazon Prime members, who can save 10 cents per gallon at select gas stations, which equates to an average of $70 per year.
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Amazon's energy usage
Amazon has been criticised for its lack of transparency regarding its energy usage. While other big technology companies publish annual reports detailing their carbon footprints, electricity use, and overall energy consumption, Amazon has refused to disclose this information. This is particularly concerning given Amazon's dominant position in the market and its influence over the internet.
In 2019, Amazon revealed that its carbon dioxide emissions totalled about 44.4 million tons in 2018, which jumped by 15% to about 51.1 million tons in 2019. These emissions are nearly as high as those of oil giant Chevron, which emitted 60 million tons of CO2 in 2019. Amazon's emissions are likely to be even higher now, as it continues to handle more goods and services, requiring more energy for its data centers, warehouses, delivery trucks, and cargo jets.
Amazon's subsidiary, Amazon Web Services (AWS), also contributes to the company's energy usage. AWS owns about half of the world's public-cloud infrastructure business and is growing by about 30% per year. It powers the online operations for high-profile brands, government agencies, and social media platforms.
While Amazon has not disclosed its total energy usage, it has introduced some initiatives to reduce its environmental impact. For example, Amazon offers Prime members fuel savings of $0.10 per gallon at select gas stations, which can amount to nearly $70 per year on average. Additionally, Amazon plans to add an electric vehicle charging savings offer in 2025, although details about this initiative are yet to be revealed.
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Amazon's subsidiary, Amazon Web Services
Amazon Web Services (AWS) is a subsidiary of Amazon that offers cloud computing services to individuals and organisations. AWS is the world's most comprehensive and widely adopted cloud, with millions of customers and over 130,000 partners in more than 200 countries.
AWS provides customers with the greatest choice and flexibility to meet their specific needs, offering a wide range of compute instances, storage classes, databases, and analytics. It is also known for its strong security features, with over 300 security, compliance, and governance services, as well as support for 143 security standards and compliance certifications.
In terms of sustainability, AWS has made significant efforts to minimise its environmental footprint. In 2023, AWS transitioned to hydrotreated vegetable oil (HVO) to power backup generators at its data centre sites in Europe and the US, reducing greenhouse gas emissions by up to 90% compared to fossil fuel-based diesel. AWS also designs its data centres to be more energy-efficient, using advanced modelling methods and real-time sensor data to optimise cooling techniques and reduce energy consumption.
AWS's infrastructure is up to 4.1 times more energy-efficient than on-premises alternatives, and it can reduce workloads' carbon footprint by up to 99%. AWS measures the efficiency of its data centre operations using power usage effectiveness (PUE) and water usage effectiveness (WUE) metrics, with a lower PUE score indicating a more efficient data centre. In 2024, AWS data centres reported a global PUE of 1.15, with its best-performing site in Europe achieving a PUE of 1.04.
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Amazon Prime fuel savings
Amazon Prime members can save on fuel costs through the Prime fuel savings offer. This offer is available at over 7,500 BP, Amoco, and participating ampm stations across the US. Members can save 10 cents per gallon on fuel, which equates to average savings of nearly $70 per year. To take advantage of this offer, Prime members can activate the savings through their Amazon account and then use their registered phone number, the earnifyTM app, or a linked payment method at the pump. The earnifyTM app can also help users locate new and existing gas stations and find additional ways to save on fuel.
It's worth noting that Amazon has faced criticism for its lack of transparency regarding its energy consumption and carbon emissions. While the company has reported record sales and profits, it has been reluctant to disclose its energy usage and carbon footprint. In 2019, Amazon revealed its carbon dioxide emissions for 2018, which totaled about 44.4 million tons. The following year, the company reported a 15% increase in emissions, reaching approximately 51.1 million tons.
The Prime fuel savings offer is one way that Amazon is trying to address energy and emissions concerns. By encouraging members to fill up at participating gas stations, Amazon is incentivizing fuel savings and potentially helping to reduce carbon emissions from fuel consumption.
Additionally, Amazon has announced plans to introduce an electric vehicle charging savings offer with bp pulse in 2025. This initiative aligns with the growing popularity of electric vehicles and could further contribute to reducing carbon emissions associated with transportation.
Overall, while Amazon has faced scrutiny for its energy consumption and lack of transparency, the Amazon Prime fuel savings offer is a step towards promoting fuel efficiency and potentially reducing carbon emissions. Prime members can benefit from both cost savings and more environmentally conscious fuel choices.
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Amazon's ESG performance
Amazon's ESG (environmental, social, and governance) performance has been the subject of scrutiny in recent years, particularly regarding its energy consumption and carbon emissions. While Amazon has reported record sales and profits, the company has been criticised for its lack of transparency in disclosing its energy use. This is despite rising pressure from employees and the fact that other big technology companies routinely publish such data.
In 2019, Amazon revealed its carbon dioxide emissions, which totalled about 44.4 million tons in 2018, and then about 51.1 million tons in 2019, a 15% increase. These figures are comparable to those of oil giant Chevron, which emitted 60 million tons of CO2 in 2019. Amazon's emissions are expected, given its vast operations, including data centres, warehouses, delivery trucks, and cargo jets.
Amazon has made some efforts to address its environmental impact. For example, Amazon Web Services (AWS), a subsidiary of Amazon, powers the online operations of high-profile brands and government agencies. AWS is akin to a common carrier, like a railroad or airline, and has a significant influence over the internet. However, it is also growing at a rate of about 30% per year, which contributes to Amazon's overall energy consumption and emissions.
Amazon has also introduced initiatives to reduce fuel consumption for its customers. For instance, Amazon Prime members can save 10 cents per gallon at select gas stations, amounting to average savings of nearly $70 per year. This initiative is part of Amazon's strategy to provide various perks and discounts to Prime members, making the membership fee more worthwhile.
Overall, while Amazon has taken some steps to address its environmental impact, its lack of transparency regarding energy consumption and emissions data raises concerns about its ESG performance. As a dominant company in the modern era, Amazon should be held accountable for its impact on the environment and should strive to improve its ESG performance through increased disclosure and sustainable practices.
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Frequently asked questions
Amazon has not disclosed its energy consumption.
Amazon's carbon dioxide emissions totalled about 44.4 million tons in 2018 and jumped by 15% to about 51.1 million tons in 2019.
Amazon's share of the domestic e-commerce market is about 5%.
Amazon Prime members can save 10 cents per gallon at select gas stations, which amounts to savings of nearly $70 per year on average.
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