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Amazon is an American multinational technology company engaged in e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence. It operates as a global marketplace offering a wide range of products and services.

Positive signals

Amazon's ESG Risk Rating from Sustainalytics as of May 2025 reflects ongoing efforts to manage industry-specific material ESG risks, including climate change, labor practices, and data privacy.

Amazon has committed to achieving net-zero carbon emissions by 2040, a decade ahead of the Paris Agreement target, positioning itself as a leader among large technology and retail companies in climate ambition.

Amazon has agreed to implement stricter measures to combat fake reviews on its UK platform after a four-year investigation by the UK Competition and Markets Authority (CMA), including sanctions on sellers who manipulate ratings and improvements in business practices.

Concerns

Amazon has refused to disclose detailed Scope 3 emissions, which account for approximately 90% of its total carbon footprint, despite repeated shareholder demands and growing regulatory scrutiny over supply chain and logistics emissions.

Amazon continues to rely heavily on non-recyclable plastics for packaging, and in 2025, opposed a shareholder proposal to transition to 100% recyclable packaging, lagging behind peers like Walmart and facing increasing regulatory and consumer pressure.

Amazon has attempted to block shareholder resolutions related to AI emissions transparency by seeking 'no action' relief from the US Securities and Exchange Commission, raising concerns about transparency and the environmental impact of its rapidly expanding data center operations.

Amazon rejected all 14 ESG-related shareholder proposals at its May 2025 annual meeting, including calls for greater transparency on environmental, labor, and governance issues, raising concerns about the company's resistance to accountability and evolving stakeholder expectations.

Amazon has faced regulatory action in the UK, where the Competition and Markets Authority (CMA) found evidence of fake review manipulation and required Amazon to implement stricter controls and sanctions on sellers, highlighting ongoing governance and consumer protection risks.