Climate Pledge Fund: Amazon’s billion-dollar venture capital initiative
The Climate Pledge Fund will invest in companies in multiple industries, including food and agriculture
Amazon has launched The Climate Pledge Fund, a $2 billion investment vehicle to support the development of sustainable technologies and services. The initiative seeks to help Amazon and other companies to meet The Climate Pledge, a commitment to be net-zero carbon by 2040.
The fund will invest in companies in multiple industries, including food and agriculture, as well as transportation and logistics, energy generation, storage and utilisation, manufacturing and materials, and circular economy.
“The Climate Pledge Fund will look to invest in the visionary entrepreneurs and innovators who are building products and services to help companies reduce their carbon impact and operate more sustainably,” explained Jeff Bezos, Amazon founder and chief executive.
Bezos said that companies from around the world of all sizes and stages will be considered. “Each prospective investment will be judged on its potential to accelerate the path to zero carbon and help protect the planet for future generations,” he explained.
The Climate Pledge
The new fund builds on The Climate Pledge, a commitment to reach the Paris Agreement 10 years early and be net-zero carbon by 2040. The pledge was co-founded by Amazon and Global Optimism last year.
Verizon, Reckitt Benckiser (RB), and Infosys recently joined the pledge, sending an important signal to the market that there will be rapid growth in demand for products and services that help reduce carbon emissions.
Amazon said the new Climate Pledge Fund will accelerate investment in innovations for the zero-carbon economy of the future.
The online retail giant hopes that, over time, the company will also look for opportunities to involve other Climate Pledge signatories in this venture investment programme.
Amazon has also released its 2019 sustainability report, including an update on the company’s sustainability goals and programs, including:
- Company is on a path to run on 100% renewable energy by 2025, five years ahead of schedule
- There are 91 renewable energy projects around the globe
- Amazon made two investments from its $100 million Right Now Climate Fund in nature-based solutions and reforestation projects around the world, including a reforestation project in the Appalachians in the US and an urban greening initiative in Berlin, Germany
- Since 2015, Amazon has reduced the weight of outbound packaging by 33% and eliminated more than 880,000 tons of packaging material, the equivalent of 1.5 billion shipping boxes.
Amazon’s Climate Pledge Fund has a dedicated portal on the company website.