Amazon raises $ 1 billion sustainable bond for climate and social causes

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Amazon.com Inc (AMZN.O) issued its first sustainability bond on Monday, raising $ 1 billion to invest in renewable energy, clean transportation, greener buildings and affordable housing.

The world’s largest company joins a growing list of debt issuers tapping into the green and sustainable bond market, which swells as asset managers come under pressure from their investors to advance environmental, social and security causes. governance (ESG).

Global green bond issuance reached a record high of $ 270 billion at the end of 2020 and could reach $ 450 billion this year, according to the Climate Bonds Initiative. Read more

The money raised through the Sustainability Bond is only a fraction of the total debt issued by Amazon on Monday – around $ 18.5 billion. The company said it is part of a new sustainable bond framework and will be dedicated to new and existing projects.

The plans include acquiring electric vehicles for transportation fleets, as well as electric bikes and other electric-powered alternative delivery vehicles, Amazon said. The executive also cited sustainable building projects, such as using a fully electric heating and cooling system powered by renewable energy at the company’s new headquarters in Arlington, Virginia.

Amazon has also said it could use the funds for private equity investments in clean transportation and zero-carbon buildings.

Amazon is committed to achieving net zero carbon emissions by 2040 and powering all of its operations with renewable energy by 2030, as well as increasing opportunities for underrepresented groups in its workforce. ‘artwork.

The decision to raise money to fund social projects comes from Amazon pushing back criticism for its treatment of its workers as its business has exploded during the COVID-19 pandemic. Read more

In addition to being lambasted for its poor health and safety practices during the first months of the pandemic, Amazon has also been criticized for illegally firing workers and pressuring staff not to form a union. on one of its sites. Read more

Amazon has denied the allegations and said it supports the right of employees to criticize working conditions.

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