E-commerce giant Amazon (AMZN) is buying carbon offset credits that will be applied to the rainforest in South America’s Amazon jungle.
According to a report on CNBC, Amazon is purchasing the carbon offsets through the LEAF Coalition’s forest conservation initiative. Amazon is spending $75 million to buy five million carbon offset credits at $15 each.
The carbon offsets bought by AMZN will help with the aggregate removal of carbon from the atmosphere. The Amazon rainforest spans nine countries in South America and is considered critically important to both life on the planet and tackling climate change.
Corporate Climate Initiative
Amazon has a company-wide environmental sustainability policy and website devoted to the initiative. The company has set itself the goal of achieving net-zero carbon emissions across all of its operations by 2040.
To that end, AMZN is investing in carbon-free energy solutions such as electric vehicles and wind power generation, in addition to buying carbon offset credits. Amazon has committed to putting 100,000 electric delivery vehicles on the road by 2030.
In the past, the company has been criticized for polluting the atmosphere with its fleet of gas and diesel-powered delivery vehicles and aircraft.
Is Amazon a Buy, Hold or Sell?
Wall Street analysts have a Strong Buy consensus rating on AMZN stock based on 42 Buy and one Hold recommendation made in the past three months. After a 15.69% rally in its share price over the last year, the average AMZN price target of $223.25 implies 51.79% upside potential.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
