Amazon is making waves in its journey toward sustainability with a groundbreaking $1 billion investment to electrify its European transportation network. This initiative is part of the company’s broader Climate Pledge to achieve net-zero carbon emissions by 2040. It underscores its commitment to tackling Scope 3 emissions, which account for the majority of its carbon footprint.
By electrifying its fleet and investing in sustainable infrastructure, Amazon sets a new corporate environmental responsibility standard.
Driving Change: Amazon’s Electric Fleet Revolution Across Europe
Amazon’s recent order of more than 200 electric heavy goods vehicles (eHGVs) represents the company’s largest single purchase of electric trucks to date. Mercedes-Benz Trucks will supply the eActros 600 vehicles, which will be deployed on high-mileage routes in the UK and Germany.
These trucks will transport over 350 million packages annually, eliminating tailpipe emissions and significantly reducing the carbon intensity of Amazon’s logistics operations. Highlighting the importance of this investment, Andreas Marschner, Vice President of Amazon Worldwide Operations Sustainability, remarked:
“This order of more than 200 electric trucks underlines our commitment to being a leader in electrifying heavy goods transportation in Europe. It is the biggest electric heavy truck order by Amazon to date anywhere in the world, and is an important step as we work to achieve our Climate Pledge commitment to reach net-zero carbon emissions across our operations by 2040.”
To support this ambitious rollout, Amazon is investing heavily in charging infrastructure. This includes 360kW chargers capable of charging a 40-ton truck from 20% to 80% in just over an hour. This infrastructure ensures that the operational efficiency of the electric fleet is maintained while significantly cutting emissions.
The electrification move is crucial for the retail giant’s journey toward net zero, particularly in slashing its Scope 3 emissions.
How Amazon Tackles Its Carbon Emissions
In 2023, Amazon reduced its absolute carbon emissions by 3%, with Scope 2 emissions (from electricity use) dropping by 11% and Scope 3 emissions falling by 5%. However, Scope 1 emissions, tied to direct operations like transportation fuel use, increased by 7%. This uptick reflects the growing scale of the company’s logistics network and highlights the need for investments like the electrification of its fleet.
Amazon’s Scope 3 emissions, which include those from supply chain and transportation activities, represent 75% of its total carbon footprint. The integration of eHGVs into its middle-mile network directly addresses these emissions.
By leveraging rail networks and urban innovations like on-foot deliveries and electric cargo bikes, Amazon is further reducing its reliance on fossil fuels. In London alone, the company has made over 150 million zero-emission deliveries using electric vans and cargo bikes since 2022. These measures highlight Amazon’s multi-pronged approach to achieving its net-zero goals.
One significant approach is the company’s own carbon credit standard ABACUS. This initiative aims to overcome the shortage of quality-labeled offsets that Amazon can use for its residual emissions and achieve its net zero goal.
ABACUS emphasizes agroforestry and reforestation projects, addressing key issues like additionality, leakage, and durability. It requires developers to use dynamic baselines to ensure measurable carbon stock changes, reducing the risk of non-additionality.
Amazon plans to be a significant carbon credit buyer. The company also aims to restore degraded land and boost verified offsets while maintaining its broader decarbonization goals.
Amazon’s renewable energy strategy is another cornerstone of its sustainability efforts. In 2023, the company matched 100% of its electricity consumption with renewable energy, seven years ahead of its 2030 target. This milestone reinforces Amazon’s leadership as the largest corporate buyer of renewable energy, with a portfolio exceeding 28 gigawatts.
Building the Future: Amazon’s Investment in Charging Infrastructure
Amazon’s $1 billion commitment extends beyond fleet electrification. The company is working to address key barriers to widespread electric truck adoption, including the lack of charging infrastructure for heavy vehicles.
By installing advanced charging stations and partnering with stakeholders to expand external networks, Amazon is paving the way for a broader industry shift toward electrification.
This effort aligns with government initiatives, such as the UK’s $252 million Zero Emission HGV project. It supports the decarbonization of heavy goods vehicles in the country.
Lilian Greenwood, the UK’s Future of Roads Minister, lauded Amazon’s efforts as a critical step toward reducing emissions across the logistics sector.
The Climate Pledge Fund and Amazon’s $1 Billion Investment
Amazon’s Climate Pledge Fund, a $2 billion initiative, is driving innovation in clean energy technologies. From direct air capture (DAC) systems to modular carbon removal solutions, Amazon is investing in transformative technologies to accelerate decarbonization.
Additionally, Amazon is engaging with its highest-emitting suppliers, expecting them to develop decarbonization plans. By fostering collaboration through the Amazon Sustainability Exchange, the company is influencing broader supply chain sustainability.
Amazon’s electrification initiative is a pivotal component of its strategy to address Scope 3 emissions and achieve net-zero goals. The transition to electric trucks will eliminate millions of metric tons of CO₂ from its logistics operations.
- For perspective, the average freight gas-powered truck emits roughly 162 grams of CO2 per ton-mile. So, for a truck that travels 1,000 miles with 20 short tons of cargo (or 2,000 lbs), 3.24 metric tons of CO2 is emitted.
The electrification move also signals Amazon’s recognition of the economic opportunities within the clean energy transition. Investments in electric vehicles, renewable energy, and carbon-neutral technologies reduce environmental impacts and also future-proof Amazon’s operations against regulatory changes and rising energy costs.
Setting the Bar for the Logistics Industry
The global logistics and e-commerce sectors face increasing scrutiny over environmental impacts. Global logistics carbon emissions have been increasing and will continue to rise, mirroring the overall increase in global carbon emissions.
Notably, logistics emissions from freight and warehousing represent around 7% of global greenhouse gas emissions, highlighting its considerable environmental impact. According to McKinsey’s analysis, the share of this emission is as follows:
Amazon’s initiatives provide a promising solution to the industry’s carbon pollution. Its $1 billion investment is more than a corporate strategy—it’s a commitment to set a benchmark for other corporations and inspire industry-wide shifts to cleaner logistics.