From Reflection To Action: Amazon India Leads The Charge In Sustainability

T Murrali
14 Dec 2024
07:00 AM
4 Min Read

The company’s commitment to sustainability in India began in 2020 with the ambitious goal of deploying 10,000 electric vehicles (EVs) by 2025.


Amazon

At the inaugural Amazon India Sustainability Summit 2024, organised by Amazon India at Bharat Mandapam on 11 December, attendees were confronted with the stark realities of humanity's detrimental impact on Earth. The event began with a sombre reflection on the environmental degradation caused by human activities, setting a poignant tone for the discussions that followed. As the day progressed, a sense of optimism emerged, focusing on actionable solutions to restore the planet for future generations.

The impetus for this summit stemmed from a 2023 meeting between Amazon's Global CEO, Andy Jassy, and India's Prime Minister, Narendra Modi. During this meeting, the Prime Minister urged Amazon to support India's sustainability objectives. In response, Amazon swiftly mobilised experts from within its organization and globally to collaborate with Indian companies, aiming to decarbonise operations and assist India in achieving its net-zero carbon goals.

Inaugurating the Summit, Kirti Vardhan Singh, Union Minister of State for Environment, Forest & Climate Change, emphasised that sustainability should not only embody ethical principles but also deliver economic benefits. He encouraged businesses to adopt a systemic approach to integrating sustainability into their operations.

As part of the summit, several pavilions were presented showcasing various topics, including Carbon-Free Energy, The Climate Pledge, Transportation, Amazon Kisan, Amazon Saheli, Amazon Karigar, Water Stewardship, and more.

During the inaugural session of the summit, Kara Hurst, Amazon's Chief Sustainability Officer, reflected on the company's journey in India, sharing both achievements and lessons learned. She emphasised the urgency of addressing environmental challenges, noting the recent deterioration of air quality in parts of India and worldwide. Hurst commended India's leadership in sustainability through initiatives like scaling renewable energy, promoting electric mobility, and afforestation.

The Beginning

Hurst said that Amazon's commitment to sustainability in India began in 2020 with the ambitious goal of deploying 10,000 electric vehicles (EVs) by 2025. The initial target of 800 EVs in the first year fell short, with only 300 vehicles deployed due to challenges such as limited high-quality EV manufacturers and insufficient charging infrastructure. This initial setback provided valuable insights, enabling Amazon to accelerate progress in subsequent years. By the fourth year, Amazon surpassed its goal, deploying over 10,000 EVs across 500 cities, including Delhi, Bengaluru, and Mumbai—a full year ahead of schedule.

Amazon
Kara Hurst

Collaboration

According to her, this success was achieved through collaborations with EV manufacturers like Tata Motors, Mahindra Electric, Ashok Leyland, and Volvo Eicher, who developed vehicles tailored to Amazon's delivery requirements. To establish a robust charging network, the company partnered with electric charging firms, fleet businesses, and delivery partners. The company also facilitated affordable financing options for two- and three-wheelers, as well as electric trucks, in collaboration with fintech firms and lending institutions, thereby lowering barriers to EV adoption. Additionally, Amazon engaged with government initiatives such as the Shoonya—Zero Pollution Mobility campaign and NITI Aayog's e-FAST program to accelerate EV adoption in India.

Learning From Failures

Hurst highlighted that the path to achieving sustainability goals is non-linear and requires a willingness to take risks and learn from failures. She underscored Amazon's philosophy of working backward from customer needs, which drives the company's ambitious sustainability targets. A prime example, she said, is The Climate Pledge, the company’s commitment to achieve net-zero carbon across its global operations by 2040, ten years ahead of the Paris Agreement. To this end, it is incorporating new technologies, such as low-carbon building materials, and applying lessons learned across its operations.

Beyond its net-zero commitment, Amazon is investing in preserving nature, developing new materials and solutions, and supporting climate technology. Recognising the importance of a healthy planet for its business, customers, employees, suppliers, and communities, Amazon launched The Climate Pledge to encourage industry-wide collaboration. To date, over 535 companies have signed the pledge, collectively prioritising sustainability and driving mutual progress.

Suppliers’ Role

Suppliers play a critical role in Amazon's sustainability efforts. To support them, the company introduced the Amazon Sustainability Exchange, offering free access to proprietary playbooks and information across seven key areas: buildings, carbon neutralisation, carbon-free energy, human rights, transportation, waste and circularity, and water stewardship. In 2025, an India-specific playbook for procuring carbon-free energy, developed with the Clean Energy Buyers Association, will be added, she noted.

Decarbonising Transportation

Recognising the importance of collaboration in transportation decarbonisation, the company has emphasized joint action. For instance, a group of Climate Pledge signatories, including GreenCo, HDL, Mahindra Logistics, and Amazon, are working together to build a comprehensive EV charging network in Bengaluru. Hurst further said that the company is also collaborating with C40 Cities, a coalition of nearly 100 mayors worldwide, to reduce freight emissions in rapidly growing urban centres in India and Latin America. Recently, this coalition began testing heavy-duty electric freight trucks along the Bengaluru-Chennai highway, marking the first step in evaluating EV trucks on this major route.

Amazon
Abhinav Singh and Kara Hurst together with the EVs

Amazon is making significant investments in carbon-free energy, with over fifty wind and solar projects in India, totalling more than one gigawatt of renewable energy capacity. Since 2020, it has been the largest corporate buyer of renewable energy globally and now holds the same position in India, according to Bloomberg New Energy Finance, she pointed out. With more than 500 global wind and solar projects, it is advancing toward its Climate Pledge commitment to achieve net-zero carbon by 2040, she explained.

In addition to technological advancements, the firm is committed to preserving and protecting nature in India. It is empowering female entrepreneurs across the country, helping them grow their businesses and become successful sellers on the Amazon platform. Hurst also has announced a new goal for the company, which will return more water to India than it uses in its direct operations by 2027. This will be done by investing in efficiency and strategic water use to benefit watersheds, lakes, rivers, and communities. This commitment builds on Amazon's efforts to enhance community water access, availability, and quality, she said.

Abhinav Singh, Vice President of Operations at Amazon India, said, 'Having more than 10,000 electric vehicles in our fleet and successfully testing long-range electric trucks are achievements that we are very proud of at Amazon. As a company and as a country, we must transition to zero tailpipe emission trucks to meet India’s net-zero goals and cut reliance on diesel freight. The logistics industry still faces limited charging infrastructure and range anxiety, and we are excited to continue to work with the government and key players in the industry to find solutions.'

The company facilitates affordable financing for electric two-wheelers, three-wheelers, and trucks, helping Delivery Service Providers and Delivery Associates overcome adoption barriers. This is achieved by partnering with fintech firms, lending institutions, and the Small Industries Development Bank of India, Singh pointed out.

The summit also featured fireside chats, panel discussions, and several breakout sessions exploring various subtopics related to sustainability.

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