Faced with new ecological constraints, the e-commerce market must adapt. Amazon suppliers are now facing new KPIs, marking a crucial evolution.
Decarbonizing the supply chain is a priority! With the explosion of e-commerce, greenhouse gas emissions (GHG) from the transportation sector have more than doubled since the 1970s. By 2050, global freight demand is expected to double again, resulting in a 25% increase in global GHG emissions.
I. Starting in 2024, a new European directive will come into force: the Corporate Sustainability Reporting Directive (CSRD).
The Corporate Sustainability Reporting Directive is a European directive signed on June 21, 2022, and voted on by Parliament in November 2022.
It will come into force in 2024 and will require companies and relevant suppliers to annually communicate on their CSR issues.
Who is affected by the CSRD?The CSRD will affect 50,000 companies in Europe and will be gradually implemented over several years :
- From January 1, 2024, for companies already subject to non-financial reporting obligations under the NFRD (large listed companies with over 500 employees).
- From January 1, 2025, for all large companies meeting 2 of the following 3 criteria: 250 employees, €40 million in turnover, or €20 million in total assets.
- From January 1, 2026, for listed SMEs meeting 2 of the following 3 criteria: 10 to 250 employees, €700,000 to €40 million in turnover, or €350,000 to €20 million in total assets (with the option to defer their reporting obligation for 2 years).
- From January 1, 2028, for European subsidiaries of non-European parent companies that generate more than €150 million in revenue in Europe and have a subsidiary or branch based in the European Union. Note that subsidiaries may be exempted from reporting if parent companies already provide a sustainability report compliant with the CSRD (this exemption does not apply to listed subsidiaries).
Amazon will be impacted starting in 2028.
II. Amazon's Commitments - Carbon Neutrality by 2040
Amazon has taken significant steps to strengthen its commitment to social and environmental action.
The company also continues to develop its sustainable initiatives, always focusing on customer satisfaction. Amazon recognizes the importance of environmental protection for its customers and constantly strives to invest, innovate, and improve. In this process, Amazon also seeks to reduce its impact on the planet and the communities where it operates.
To achieve net zero CO2 emissions by 2040, Amazon must reduce the carbon footprint of all its activities, including its supply chain. Key highlights from Amazon's 2022 Sustainable Development Report.
III. Immediate Consequences for All Amazon Suppliers
Amazon's commitments to reduce CO2 emissions, combined with the new European directive, directly affect suppliers.
Amazon will intensify monitoring of its suppliers' carbon footprint, introducing new environmental key performance indicators (KPIs) in addition to existing operational KPIs, making management of the vendor central account even more complex.
