Amazon has raised $1bn (£707m, €821m) to put towards its first sustainability bond, which the retail giant will invest in renewable energy and clean transport. The bond will also help various construction initiatives to produce greener buildings and affordable housing.

The sum Amazon has raised through its new sustainability bond is only a small proportion of the $18.5bn total debt recently issued by the retailer.

New projects

Amazon said the allocated funds are part of a new Sustainable Bond Framework that it plans to spend on existing projects along with fresh ventures.

According to Amazon, some of the programmes include adding electric vehicles to Amazon’s transportation fleets, along with e-bikes and other electric-powered modes of delivery.

Sustainable projects, like renewable energy driven all-electric heating and cooling system at the company's new headquarters in Arlington, Virginia, are also scheduled to go ahead as part of the plan.

Clean transport and carbon-neutral building projects may also be targeted for private equity investment with funds from the Sustainable Bond Framework.

Amazon has set itself the goal of reaching net zero carbon emissions by 2040 and hopes that all its activities will be powered by sustainable energy sources by 2030. It says, however, they are on track to achieve this five years early, by 2025.

According to Climate Bonds Initiative, green bond issuance reached a record high of $270bn at the end of 2020 across the globe and could reach $450bn this year.

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