Supporting Nature-Based Solutions Climate science is telling us that, even with aggressive decarbonization efforts, companies will need to go beyond their own operations to reach net- zero emissions by 2050. We believe that companies, including Amazon, can drastically reduce their own emissions while also investing outside their operations in initiatives that significantly contribute to achieving the Paris Agreement. One way we are doing this is by investing in nature-based solutions that conserve, restore, and improve land management activities to increase carbon storage in a variety of habitats. Our Approach In 2019, Amazon created the Right Now Climate Fund, a $100 million fund for nature-based solutions to restore and conserve forests, wetlands, and grasslands around the world. Amazon uses nature-based solutions to mitigate carbon emissions outside of our value chain and supplement the carbon-reduction efforts we are driving across our operations. Nature-based solutions also have the additional benefit of helping to preserve the natural world by conserving wildlife habitats, protecting biodiversity, improving water quality, and reducing flood risk. All of these impacts can greatly enhance well-being in communities around the world. We follow scientific research to fund initiatives that are critical to hitting the targets of the Paris Agreement and staving off the most catastrophic effects of climate change. Our approach to carbon neutralization focuses on three actions outside our value chain that can deliver needed mitigation and that have a significant unmet need for investment: • Reducing deforestation to near zero, especially in tropical regions • Scaling up the removal of carbon from the atmosphere with nature-based solutions such as reforestation and agroforestry • Scaling up carbon-removal technologies, such as direct air carbon capture and storage Scaling Up Nature-Based Carbon Removal Nature-based carbon removal has the potential to take billions of tons of carbon dioxide out of the atmosphere. Our nature-based carbon removal actions center on developing systems, tools, scientific knowledge, and scalable business models for reforestation and regenerative agroforestry. Over time, we will look to expand our focus to include other forms of nature-based carbon removal, such as restoring mangrove forests and marine ecosystems. Nature-Based Carbon Removal in Brazil In 2021, Amazon partnered with The Nature Conservancy to launch the Agroforestry and Restoration Accelerator . The Accelerator will restore native rainforest to naturally trap and store carbon and mitigate climate change. It will also create a more sustainable source of income for thousands of local farmers in the Brazilian Amazonian state of Pará. The Accelerator is experimenting with innovative ways to support farmers and nurture markets for sustainable commodities and will advance new approaches and satellite-based technologies to quantify and monitor carbon removal. Reducing Emissions From Deforestation Significant investment is urgently needed to help communities set a course that both provides for sustainable economic development and protects forests, particularly in tropical forest regions. Protecting the World’s Tropical Rainforests In 2021, Amazon helped to create the Lowering Emissions by Accelerating Forest finance (LEAF) Coalition , a global initiative of governments and leading companies that has already mobilized $1 billion to protect the world’s tropical rainforests . The public-private project is designed to accelerate climate action by providing financing to help countries protect their tropical rainforests. In November 2021, the coalition signed Letters of Intent with five tropical forest countries: Ecuador, Costa Rica, Ghana, Vietnam, and Nepal. The LEAF Coalition is expected to become one of the largest initiatives ever to protect tropical forests and support sustainable development, and will benefit billions of people around the world who depend on the rainforests. Supporting Family Forests in the U.S. In 2020, Amazon committed $10 million to support two programs in collaboration with The Nature Conservancy. The programs help family forest owners sequester carbon across the Appalachian region of the Eastern U.S., which has been identified as disproportionately important for conserving biodiversity and mitigating climate change. Amazon’s grant supports efforts to expand the programs to new regions, develop a scientific approach to measuring regional carbon impact, and enhance carbon verification methodology for these projects. In 2021, the programs added 107 new family landowners and expanded access to the program to 130 counties. 2021 Sustainability Report Introduction I Environment I Society I Governance I Appendix 18