Amazon's zero carbon plan loses backing of watchdog

UN-backed SBTi has struck Amazon off its list of companies taking action on climate goals

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our years into a plan to eliminate its carbon emissions, Amazon.com Inc. has lost a key endorsement from the world's leading watchdog of corporate climate goals.

The Science Based Targets initiative, a United Nations-backed entity that validates net zero plans, has removed Amazon from its list of companies taking action on climate goals after the tech behemoth failed to implement its commitment to set a credible target for reducing carbon emissions.

The move raises questions around Amazon's status as a preferred stock among funds marketing themselves as ESG. The world's largest ESG exchange-traded fund, which is managed by BlackRock, lists Amazon among its top three holdings. The company is also held in over 900 ESG funds registered in the European Union alone, representing about 2% of outstanding shares, according to data compiled by Bloomberg.

Amazon is in contact with SBTi, according to Elizabeth Fine, a spokeswoman for the company.

"We've collaborated with the Science Based Targets initiative over the last several years in order to determine appropriate submission guidelines and methodologies for complex businesses like Amazon," Fine said by email. Amazon intends to "continue to work with SBTi "to establish a path forward for submission." But "in tandem," Amazon "will also seek to set science-based targets with other organizations," she said.