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Prime Air Delivering Progress Every Day Amazon’s 2021 Sustainability ReportPrime Air About This Report At Amazon, we are committed to and invested in sustainability because it’s a win all aroundit’s good for the planet, for business, for our customers, and for our communities. Our 2021 Sustainability Report builds on our sustainability progress over the last decadeparticularly since we co- founded The Climate Pledge in 2019 and announced our commitment to achieve net-zero carbon emissions across our business by 2040. This report also includes our work on a wide range of Amazon commitments and initiatives to support our employees, our supply chain partners, and the communities where we operate around the world. All financial figures are reported in U.S. dollars , unless otherwise stated. Please note that data within this report primarily reflects progress as of 2021, and all data that is timebound since a certain date is updated as of June 2022, unless otherwise indicated. This report includes appendices that are informed by the following frameworks the Sustainability Accounting Standards Board SASB, the Task Force on Climate-related Financial Disclosures TCFD, and the United Nations Guiding Principles UNGP Reporting Framework. About Amazon Amazon is guided by four principles customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. We strive to be Earth’s most customer-centric company, Earth’s best employer, and Earth’s safest place to work. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, Amazon Web Services AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon. We have more than 1.6 million employees worldwide, with operations in Africa, Asia-Pacific, Europe, India, Latin America, the Middle East, and North America. Introduction 3 Opening Letter From Kara Hurst, Vice President, Worldwide Sustainability 4 Our Business 5 Sustainability Around the Globe 6 Goals and Progress 7 Continuing Our COVID-19 Response Environment 10 Our Carbon Footprint 14 Growing The Climate Pledge 16 Investing in Innovation Through The Climate Pledge Fund 18 Supporting Nature-Based Solutions 20 On the Path to 100 Renewable Energy 22 Incorporating Sustainability Into Our Buildings 24 Decarbonizing T ranspor tation 26 Avoiding and Managing Waste 28 Improving Our Packaging 30 Pr oduc t Sustainabilit y 35 Sustainability in the Cloud Society 41 Respecting Human Rights Throughout Our Business 46 Providing a Range of Employee Benefits 51 Fostering Diversity, Equity, and Inclusion 57 Employee Engagement Listening to Our People 59 Safety, Health, and Well-Being at Amazon 61 Building a Supply Chain That Puts People First 69 Supporting Our Communities Governance 75 Corporate Go v ernanc e 77 Business Ethics 78 Advocacy and Public Policy 79 P ar tnerships Appendix 81 SASB 84 UNGP Reporting Framework 90 T CFD 96 UN SDGs 97 Carbon Footprint Data 98 Supplier Assessments 99 Our Workforce Data 100 Disclaimer and Forward-Looking Statements Contents Look out for these symbols throughout the report A link that directs you to a website A link within the report A link to a download Look out for these common abbreviations throughout the report AWSAmazon Web Services UNUnited Nations NGONongovernmental organizations CO 2 Carbon dioxide CO 2 eCarbon dioxide equivalent 2021 Sustainability Report Introduction I Environment I Society I Governance I Appendix 2 Delivering Progress for the Planet In 2019, we co-founded The Climate Pledge and made a commitment to achieve net-zero carbon by 204010 years ahead of the Paris Agreement. We invited others to join us and there are now more than 300 businesses and organizations across 51 industries and 29 countries that have signed the Pledge, which means we are collectively coming at the climate crisis from nearly every sector and nearly every angle. As part of our efforts to decarbonize our business, we became the world’s largest corporate purchaser of renewable energy in 2020, and last year, we reached 85 renewable energy across our business. We continue to expand our use of zero-emission transportation such as electric delivery vans, cargo bikes, and on-foot deliveries, and in 2021, more than 100 million packages were delivered to our customers’ doorsteps globally using zero-emission vehicles. We are also investing in nature-based solutions, and last year, we helped to create the Lowering Emissions by Accelerating Forest finance LEAF Coalitiona global initiative of governments and leading companies that has already mobilized 1 billion to protect the world’s tropical rainforests. We will continue to act boldly to address climate change and to invest in solutions to help meet our commitment to reach net-zero carbon across our operations by 2040. Delivering Progress for People Our ability to be a force for change on behalf of our planet relies on diverse perspectives from smart, passionate, and committed people from all backgrounds. In 2021, we continued to make progress on our diversity goals, including increasing the number of Black directors and vice presidents by almost 70, and we remain committed to increasing Vice President, Worldwide Sustainability, Amazon Every day at Amazon, we ask ourselves, “How can we make this product, this service, or this experience better for our customers” We continually seek ways to challenge ourselves and improve how we deliver for our customers, support our employees, and accelerate the pace of innovation. This mindset is ingrained in our culture, so every day, we apply the same relentless pursuit to delivering progress on our sustainability commitments. The journey to become more sustainable is not simple or straightforward for any organization. For a company of the size and broad scope of Amazon, it’s a big challenge. But at Amazon, we don’t shy away from big challenges. We innovate and create. We don’t have all the answers today, but we believe in the need to act now. This is reflected in one of our newest Leadership Principles, introduced last year Success and Scale Bring Broad Responsibility. It says that “we are big, we impact the world, and we are far from perfect. We must be humble and thoughtful about even the secondary effects of our actions. Our local communities, planet, and future generations need us to be better every day.” We apply our Leadership Principles dailywhether we are discussing ideas for new inventions or deciding on the best approach to solve a problem. Throughout 2021, we embedded the spirit of this Leadership Principle into our everyday actions and continued to make progress on our environmental and social commitments. diverse representation in our workforce at the most senior levels. We’ve helped more than 70,000 Amazon employees learn new skills and advance their careers as part of our Upskilling 2025 pledge, and we are enabling thousands of hourly employees in 14 countries to earn certificates and degrees through Amazon Career Choice. Earlier this year, we also expanded travel reimbursements for our employees in the U.S. to cover treatment for non-life-threatening medical issues when travel is required, including elective abortion and infertility, starting in 2022. In our communities, we are supporting initiatives to address the affordable housing crisisincluding a commitment of more than 2 billion from the Amazon Housing Equity Fund, launched last year. As of March 2022, these commitments have already preserved or created 8,000 affordable units to house more than 18,000 people. Also last yearin service to people in our communities and supply chainwe signed the United Nations’ UN Women’s Empowerment Principles, which offers businesses guidance on ways to promote gender equity in the workplace and global community; we created a 150 million Black Business Accelerator program in partnership with our Black Employee Network affinity group; and we launched a 12 million, five-year partnership with the U.S. National Safety Council to uncover new ways to prevent and address musculoskeletal disorders. Since the beginning of Russia’s invasion of Ukraine in early 2022, we quickly mobilized to provide humanitarian aid and assistance to the people of Ukraine, including financial and in-kind donations, cloud computing credits, resettlement support, and more. We are proud of how our global teams came together to support this effort and are honored to have been awarded the Ukraine Peace Prize for the support AWS has shown the Ukraine government and the Ukrainian people. Delivering Progress Every Day We are proud of the progress we’ve made, but we recognize we have more to do. Our everyday actions to deliver progress are in service of achieving long-term, systemic change that improves the well-being of people, communities, and the planet. The path to achieving some of our goals will be long and complex, but we are not deterred. At Amazon, we thrive on pushing the boundaries of what’s possible. We are taking the same tenacity we use to invent and problem solve for our customers and applying it to how we help address some of the world’s biggest challenges. I hope you enjoy learning more about how we are doing this as you read our 2021 Sustainability Report. With gratitude, Kara Hurst Opening Letter From Kara Hurst 2021 Sustainability Report Introduction I Environment I Society I Governance I Appendix 3 Our Business As part of our mission to be Earth’s most customer-centric company, we are committed to building a sustainable business for our employees, customers, and communities, including the people that support our entire value chain. Our Operations We offer access to a wide selection of products sold by us and by third parties across dozens of categories. We help make customers’ lives easier and more enjoyable through our devices and services. We create and provide access to world-class content and entertainment. We provide the world’s most comprehensive and broadly adopted cloud offering. All of this and more is underscored by our commitment to customer service and a state-of-the- art logistics and delivery network. Our Communities We leverage our scale and assets for good to support charitable organizations and strengthen communities where our employees and customers live and work. Our culture is built around solving seemingly impossible problems, which is why we take a different, more hands-on approach than most. We use this approach to support education for underrepresented groups, address direct needs including family hunger, homelessness, and natural disasters, and protect our planet to build a better future for all. Our Supply Chain Our approach is designed to drive engagement with suppliers that meet our expectations for respecting human rights, providing safe and inclusive workplaces, and promoting a sustainable future. We engage with suppliers across the globe that are required to meet the standards we outline and commit to these principles. Our Customers We are always finding new ways to delight our customers while constantly aiming to offer lower prices, better selections, and more convenient services. We serve our primary customer sets in the following ways consumers through our online and physical stores; sellers through programs that enable them to grow their businesses; developers and enterprises of all sizes through AWS; content creators through services that enable them to publish and sell content; and advertisers through advertising services. Our Principles We have 16 Leadership Principles , which describe how we do business and how we keep the customer at the center of our decisions. In 2021, we added two new Leadership Principles Strive to be Earth’s Best Employer and Success and Scale Bring Broad Responsibility. 2021 Sustainability Report Introduction I Environment I Society I Governance I Appendix 4 Sustainability Around the Globe Our global sustainability efforts are making a positive impact in communities around the world. Learn more about our global initiatives on our website. Australia Indonesia India Singapore Italy Tanzania Brazil United States Canada South Africa Supported Solcast to use cloud cover, solar radiation, and photovoltaic power data to provide forecasts to the solar power industry. Partnered with Water.org and WaterAid in India and Indonesia to provide clean water to over 250,000 community members. Began adding 10,000 electric vehicles to our existing fleet. Announced our first renewable energy project in Singapore, a 62-megawatt MW solar project made up of a series of solar panels mounted on a ground system that will generate 80,000 MWh of clean energy annually. Supported Parco Italia, an urban forestry program that aims to plant 22 million trees across 14 metropolitan areas in Italy. Germany Partnered with The Nature Conservancy’s Urban Greening Program in Germany and supported mapping and analysis for roofs, grasslands, and urban streetscapes in Berlin. Began hosting data on AWS on the Digital Earth Africa platform to monitor how coastal erosion, rising sea levels, and deforestation are contributing to the degradation of mangrove trees on the island. Partnered with The Nature Conservancy to launch the Agroforestry and Restoration Accelerator to restore native rainforest to naturally trap and store carbon and mitigate climate change. Women at Amazon in the U.S. earned 99.9 cents for every dollar that men earned performing the same jobs in 2021. Announced our largest renewable energy project in Canada in June 2021. Once online, our renewable projects in Canada will produce more than 1 million megawatt-hours MWh each year. Launched our first operational solar project in South Africa, expected to generate up to 28,000 MWh of renewable energy per year for the grid. 2021 Sustainability Report Introduction I Environment I Society I Governance I Appendix 5 Goals and Progress Bold thinking and relentless innovation. That’s what we do at Amazon, and how we approach sustainability is no exception. Our approach combines long-term commitments and everyday actions, reinforced by our Leadership Principles and our “Day 1” mentality. We apply our history of invention to ideas and efforts that support people and communities. We make targeted investments to support our ambitions and the development of sustainable technologies. These are just some of the many ways we are working to deliver progress on the path to achieving our long-term goals. Learn more about our Goals and Progress on our website. Transforming Our Operations Contributing to a More Equitable Society Activating Collective Impact Success and Scale Bring Broad Responsibility On a path to powering our operations with 100 renewable energ
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