Amazon announces $2 billion Climate Pledge Fund

Amazon has announced a $2 billion Climate Pledge Fund in order to support green energy developments to fight climate change.

The investment into sustainable technologies and services will help the company reach its commitment to be net-zero in its operations by 2040.

The pledge will back visionary companies whose products and services will facilitate the transition to a zero-carbon economy.

It will invest in companies in multiple industries, including transportation and logistics, energy generation, storage and utilization manufacturing and materials, circular economy, and food and agriculture.

Jeff Bezos, Amazon founder and CEO said: “The Climate Pledge Fund will look to invest in the visionary entrepreneurs and innovators who are building products and services to help companies reduce their carbon impact and operate more sustainably.”

Bezos also said that companies of all sizes will be considered. “Prospective investment will be judged on its potential to accelerate the path to zero carbon and help protect the planet for future generations,” he said.

The Climate Pledge Fund, co-founded by Amazon and Global Optimism in 2019, is a commitment to reach the Paris Agreement ten years early and be net zero carbon by 2040. 

Verizon, Reckitt Benckiser (RB), and Infosys are the most recent companies to join the pledge. This movement is causing the market to shift towards reducing carbon emissions in response to the rapid growth in demand for products and services that delivery on this.

Amazon is also looking for opportunities to involve other Climate Pledge signatories to this investment programme.

“Amazon has demonstrated its leadership in adopting low carbon technologies at scale,” said Rivian CEO R.J. Scaringe. “Their investment in Rivian and subsequent order of 100,000 electric delivery vans will substantially shrink the carbon footprint of Amazon’s package delivery network. We're excited about a future of decarbonized delivery services.”

The retail giant also released its 2019 sustainability report and an update on its sustainability goals and programmes.

Amazon announced that it is on path to run on 100 percent renewable energy by 2025, five years ahead of schedule. The company has also invested in nature-based solutions and reforestation projects in the Appalachians in the U.S. and an urban greening initiative in Berlin, Germany as part of its $100 million Right Now Climate Fund.