Introduction
Faced with new ecological constraints, the e-commerce market must adapt. Amazon suppliers are now facing new KPIs, marking an essential evolution.
Decarbonizing the supply chain is a priority! With the explosion of e-commerce, the volume of greenhouse gases (GHG) emitted by the transport sector has more than doubled since the 1970s.
By 2050, global freight demand is expected to double again, representing a 25% increase in global GHG emissions.
I. As early as 2024, a new European directive will come into force: the Corporate Sustainability Reporting Directive (CSRD).
The CSRD is a European directive signed on June 21, 2022, then voted on in Parliament in November 2022.
It will come into force in 2024 and will require the companies and suppliers concerned to communicate annually on their information relating to CSR issues. Who is affected by the CSRD?
The CSRD will concern 50,000 companies in Europe and will be accompanied by gradual implementation over several years:
- From January 1, 2024 for companies already subject to an extra-financial reporting obligation under the NFRD (large listed companies with more than 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 balance sheet total.
- From January 1, 2026 for listed SMEs meeting 2 of the following 3 criteria: 10 to 250 employees, €700k to €40m in turnover, or €350k to €20m in balance sheet total (with the possibility of deferring their reporting obligation for 2 years).
- As of January 1, 2028 for European subsidiaries of non-European parent companies that generate more than €150 million in turnover in Europe and a subsidiary or branch based in the European Union. Note that subsidiaries may be exempt from reporting if the parent companies already provide a sustainability report in accordance with the CSRD (this exemption does not apply to listed subsidiaries).
Amazon will be impacted as early as 2028.
II. Amazon's commitments — Carbon neutrality in 2040
Amazon has taken significant steps to strengthen its commitment to social and environmental action.
The company also continues to develop its sustainability initiatives, always with an emphasis on customer satisfaction. Amazon recognizes the importance of protecting the environment for its customers and is constantly striving to invest, innovate, and improve.
In this effort, Amazon also seeks to reduce its impact on the planet and the communities where it operates. To reach net zero CO2 emissions by 2040, Amazon must reduce the carbon footprint of all its activities, including in its supply chain.
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 the carbon footprint of its suppliers, introducing new environmental key performance indicators, which will add to existing operational KPIs, making managing the central vendor account even more complex.
