Amazon issues sustainability bond worth $1 billion for energy, emobility, green buildings
E-commerce giant Amazon.com Inc. has announced that it has issued its first sustainability bond raising $1 billion to capitalize on renewable energy, clean transport, greener buildings, and affordable housing.
The world's leading company joins a growing list of debt issuers tapping the market for green and sustainable bonds, which is swelling as asset managers come under pressure from their investors to advance environmental, social and governance (ESG) causes.
Global green bond issuance reached a record high of $270 billion at the end of 2020 and could reach $450 billion this year, as per Climate Bonds Initiative.
The capital raised through the sustainability bond is a portion of the total debt Amazon issued around $18.5 billion. The company said it forms part of a new Sustainable Bond Framework and will be spent on new and prevailing projects.
The projects comprise the acquisition of electric vehicles for transportation fleets, as well as e-bikes and other electric-powered alternative delivery vehicles, Amazon said. The framework also mentioned sustainable building projects, like using an all-electric heating and cooling system run on renewable energy in the company's new Arlington, Virginia, headquarters.
Amazon also said that it may use these funds for private equity investments in clean transportation and zero-carbon buildings.
Amazon has pledged to reach net-zero carbon emissions by 2040 and to power all its operations with renewable energy by 2030, as well as increase opportunities for under-represented groups in its workforce.