Learn more about our corporate governance . Task Force on Climate-related Financial Disclosures (TCFD) Our Approach We aim to consistently deliver progress on our climate- related performance, whether in our own operations or by enabling meaningful change beyond our business. We take a science-based, customer-centric approach to climate, using a structured lifecycle assessment (LCA) model to measure and map environmental hotspots across our value chain. Our approach to quantifying our carbon footprint reflects the complexity of our business. Our team of researchers and scientists has combined cutting-edge LCA science and AWS technology to develop a robust software solution that processes billions of operational and financial records from Amazon’s operations across the world to calculate our carbon footprint. The software estimates carbon emissions for all activities within our system boundary using a dollar- based environmental assessment model, then enhances the accuracy of carbon-intensive activities with detailed, process- based LCA models. We categorize climate risks and opportunities by considering customer and stakeholder expectations, regulations, business risks, industry best practices, and emerging trends. We embed a variety of mechanisms across our business operations to address sustainability issues, including climate- related risks, and we integrate sustainability practices into our everyday operations through goal-setting, metrics, and leadership reviews. Governance We have an established governance framework to help ensure that risks associated with climate change are considered at the most senior levels of our business. • Board Oversight: The Nominating and Corporate Governance Committee of Amazon’s Board of Directors oversees environmental, sustainability, and corporate social responsibility practices, and our corporate governance policies and initiatives. The committee also oversees our progress on The Climate Pledge and risks related to our operations, supply chain, and customer engagement. • Management Oversight: Amazon’s Worldwide Sustainability team, along with dedicated teams across the company, are working to make operational changes that reduce or eliminate carbon in our business. Our companywide carbon accounting model provides specific operational metrics to business teams on their emissions and allows them to track progress on decarbonization. We also hold quarterly business reviews with Amazon leadership teams to track our progress. Climate-related Risks and Opportunities We are committed to minimizing our carbon emissions by optimizing our transportation network and investing in electric vehicles; improving product packaging to drive efficiency in the distribution of products; implementing energy efficiency measures in our operations; using renewable energy to run our business; and supporting global reforestation. We have joined numerous industry partnerships including Ceres, American Council on Renewable Energy, Advanced Energy Buyers Group, Carbon Leadership Forum, We Mean Business Coalition, First Movers Coalition, and Clean Energy Buyers Alliance to express support for action on climate change and to accelerate the transition to a low-carbon economy. Metrics and Targets We have a comprehensive understanding of the carbon emissions across our business and have done extensive analysis to develop science-based targets, strategies, and metrics to reduce them. Learn more about the science and technology behind our carbon footprint in our Carbon Methodology . Our carbon footprint , including Scope 1, Scope 2, and Scope 3 greenhouse gas emissions, is available on page 97. Amazon co-founded The Climate Pledge—a commitment to be net-zero carbon across our business by 2040. We have a goal to deliver 50% of Amazon shipments with net-zero carbon by 2030. We are also on a path to powering our operations with 100% renewable energy by 2025—five years ahead of our original target of 2030. See our public methodology for more on our approach. As part of our commitment to The Climate Pledge, we are proud to have joined the Science Based Targets initiative (SBTi) and are working toward setting science-based targets. This reaffirms our commitment to reduce carbon emissions in line with our ongoing science-based approach to tackle climate change. 2021 Sustainability Report Introduction I Environment I Society I Governance I Appendix 90