Amazon’s Sustainability Disclosure

1.Packaging, Waste, Nature Loss

Authors: Shannon Park, Tyler Tu, Natalie
DISCLOSED WELL
Disclosure Standards: States that it issues disclosures pursuant to the TCFD metrics, allowing for comparability and
universality in the method and metrics the company discloses.
Product Waste: Discloses products repaired in the U.S. and Europe through internal repair programs
Specific Packaging Waste Statistics: “We used 85,916 metric tons of single-use plastic... This represents an 11.6% decrease
from 97,222 metric tons in 2021.”
Breakdown of Package Types and percentages helps stakeholders gauge Amazon’s impact on its most renown retail business.

LIMITATIONS
Nature loss (land use/ ecological sensitivity): Not reported, which neglects a significant portion of environmental impact and
potentially mislead stakeholders to think that Amazon is more environmentally friendly than it actually is.
Packaging waste: Amazon is subject to greenwashing, as it has left out important details on its waste and only highlighted the
positives. Ie. Boasts about recyclability but omits statistics on what percentage of its packaging is actually being recycled, the
fact that its plastic Prime packaging is only recyclable at specific facilities, and how much plastic they have generated each
year (which is billions).
LCA Scope: The limitations caused by LCA and how setting scope and boundaries (ie. assessing post-sale recycling %) can
allow a company to mislead consumers on their ecofriendliness.
2. Carbon, Renewable 13.4 Mmt VS 13,400,000 mt
Energy, and Water Unlike standard, Amazon uses Millions. Downplays its carbon footprint at initial glance

DISCLOSED WELL
Scope 1, 2, and 3 have all been reported, indicating positive compliance with TCFD reporting,
but whether LCA scope and boundaries are comprehensive and accurate cannot be verified.
Detailed Initiative Descriptions on decreasing carbon footprint of Amazon devices (ie. Carbon
neutralization initiatives, ECOPact Concrete, funding for technologies )
Discloses specific % increase in Climate Pledge Friendly labeled products and impact on sales
Percentage of packages globally shipped without extra Amazon delivery packaging
Transparency on progress to achieve net zero carbon emissions by 2040 (image on right)

LIMITATIONS
No mention of third-party audits in Amazon’s 2022 sustainability report, which hinders the
credibility of Amazon’s reports, claims, and statistics.
Co2e emissions are not standardized to Metric Tonnes. Million makes the number look smaller
so misleading
Does not report the amount of water withdrawn or consumed
Use of renewable energy: Amazon is making progress towards its goal of powering its
operations with 100% renewable energy, but the company still relies heavily on fossil fuels
 Social/People Pillar
DISCLOSED WELL
Discloses breakdowns of statistics under social pillar (i.e. gender, race, worker wages,
CEO compensations, risks to children, etc.)
Provides examples of working with third parties in terms of sourcing materials and
agricultural products and are verified by them
Human rights are worked on in hand with external companies to improve standards
Provides a comprehensive overall view of Amazon in the U.S.

LIMITATIONS
Does not verify the validity of working or consulting with external entities or stakeholders
(i.e. not giving examples of externals)
Amazon could provide more information on its labor practices, such as its use of
temporary workers and its policies on overtime pay.
Could also provide more data on the impact of its community engagement programs.
Partially discloses pay wage difference between genders in the US and worldwide
No third-party or external verification in terms of goals/progress of equity, inclusivity, or
safety of public/employees
Fails to provide third-party/external audits to back up claims/progress for improvements
with health, safety, diversity, etc.
Global efforts are mentioned but fail to provide credibility to claims as well
Overall Look on Social/People
Human Rights
Amazon puts a big emphasis on working with different organizations in improving their supply chain, updating standards,
conducting assessments, and as well as having consultations with stakeholders on specific vulnerable groups. The sustainability
report provides organizations they are engaged with organizations like Indirect Spend Alliance. And do overall seem to be
working on improving supplier health in partnership with PATH.

Diversity/Inclusivity
Overall Amazon does a good job in disclosing the breakdowns for the statistics of gender, race, etc. And seemed to be
recognized in this by many different organizations as well. States in increasing diversity in supply chains as well but does not
have third-party verification to back these claims. Mentions Global efforts in act of support and equity but provides no
verification for these claims either.

Health & Safety

Provides plans and progress in improving safety/health for that of employees and as well as incident risk assessments for
children. Amazon does a good job of disclosing the statistics and information for this but does not provide external audits to
back these claims as well.
Governance Pillar
DISCLOSED WELL

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Members of the Board of Directors: members involved in Amazon’s governance are clearly outlined, as well
as the time they have spent with the company, and their specific roles in the organization to ensure efficacy
and efficiency in the governance of the company to shareholders.
Combatting Corruption: Amazon explicitly details its plan to combat corruption and ensure human rights
standards are held in the manufacturing, transportation, hiring, and promotional stages of production. They
work with outside organizations to ensure the efficacy of their framework

LIMITATIONS
Disclosing Material Issues: No disclosure on processes for addressing material issues with stakeholders, as
well as no materiality map
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No Disclosure on Training on Preventative Measures for Corruption : despite outlining their plan to combat
corruption and ensure responsible acquisition and recruitment, there are no details about the training
members of the Board receive in regards to these measures
Unclear if non-shareholders may have representation on the Board, which futher reflects a lack of
consideration for more diverse perspectives in the company’s governance.

Shannon Park, Tyler Tu, Natalie