BOSTON, May 16, 2024— On May 22, Amazon shareholders will vote on a proposal, filed by Amalgamated Bank and Green Century, with shareholder representative As You Sow, calling on the company to disclose indirect emissions, known as Scope 3 emissions, from products it sells. Last year, Amazon blocked a similar proposal, preventing shareholders from understanding the Company’s material climate risk, even as the impacts of climate change on the economy compound.
Currently, the company only discloses emissions from the sale of its private-label products, which account for approximately 1% of the products sold on its site. This leaves the emissions from 99% of products sold on Amazon’s site unreported. Such limited disclosure may be misleading to investors and fails to answer concern about the company’s preparedness for emerging regulation under the European Union’s Corporate Sustainability Reporting Directive and California’s emissions reporting law.
“The foundation of intelligent investing is clear and concise information on corporate risk,” said Annie Sanders, director of shareholder advocacy at Green Century Capital Management. “Amazon’s lack of comprehensive emissions reporting leaves us in the dark while creating potentially avoidable financial risk.”
“Amazon is selectively holding back the vast majority of greenhouse gas emissions from the products it sells, thus providing an incomplete accounting of its climate impact,” said Ivan Frishberg, Chief Sustainability Officer at Amalgamated Bank. “Amazon’s public commitments and position as a climate leader are significantly undermined by its approach to carbon accounting.”
“Walmart, a direct competitor of Amazon, reports scope 3 emissions for all products it sells, including its own private label,” said Danielle Fugere, president and chief counsel of As You Sow. “There is no reason that Amazon should be less capable than Walmart of reporting on the extent of its climate emissions and climate risk. This appears to be an issue of willingness on the part of Amazon. Investors expect more.”
Green Century Capital Management Inc. is a leader in the environmentally responsible investing field. Green Century provides mutual funds for individuals and institutions to keep their money out of the most environmentally harmful industries. Green Century’s three-part approach combines fossil fuel free investing with award-winning shareholder advocacy and support of its public health and environmental nonprofit owners.
Amalgamated Bank is a New York-based full-service commercial bank and a chartered trust company with a combined network of five branches across New York City, Washington D.C., and San Francisco, and a commercial office in Boston. Amalgamated Bank was formed in 1923 as Amalgamated Bank of New York by the Amalgamated Clothing Workers of America, one of the country’s oldest labor unions. Amalgamated Bank provides commercial banking and trust services nationally and offers a full range of products and services to both commercial and retail customers. Amalgamated Bank is a proud member of the Global Alliance for Banking on Values and is a certified B Corporation®. Amalgamated Bank engages with portfolio companies held by the Longview family of funds managed by the Bank.
As You Sow is the nation’s leading shareholder representative, with a 30-year track record promoting environmental and social corporate responsibility and advancing values-aligned investing. Its issue areas include climate change, ocean plastics, pesticides, racial justice, workplace diversity, and executive compensation. Click here for As You Sow’s shareholder resolution tracker.