Part A – Assessment of Business

Sustainability Reporting

Amazon and Microsoft company

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Table of Contents
Introduction......................................................................................................................................2
Similarity and differences between the companies.........................................................................3
Sustainable Development Goals and Sustainability/CSR Report....................................................4
Sustainability Phases.......................................................................................................................5
Social report Alignment with stated values.....................................................................................6
Reflection and influence..................................................................................................................7
References:......................................................................................................................................9

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Introduction
Amazon and Microsoft both release CSR and sustainability reports. With its headquarters in the
United States, the international technology giant Amazon is a leader in cloud computing,
artificial intelligence, and digital streaming. The company operates in a variety of countries and
sectors, including retail, technology, and entertainment. Amazon has recently made efforts to
raise its environmental standards after previously receiving criticism for its lack of sustainability
measures. The company has published a Sustainability Report for 2021 that outlines its goals and
developments in areas including social responsibility, waste reduction, and renewable energy
(Air, 2021).
Microsoft is yet another multinational technology company headquartered in the United States
that develops, licenses, and sells computer software, consumer goods, and personal computers.
The objectives, which are fully discussed in the 2021 Environmental sustainability report of the
company, have been achieved. The company has lessened its carbon footprint by utisling several
measures, such as investing in carbon capture technology and renewable energy (Guardian staff
and agencies, 2020). However, Microsoft has a long history of commitment to sustainability and
has established high criteria for itself, such as being a carbon-negative, water-positive, and zero-
waste corporation.

Similarity and differences between the companies

Microsoft and Amazon, two of the largest technology companies in the world, have both made
commitments to sustainability and corporate social responsibility (CSR). Despite having
comparable techniques, they nevertheless have some significant differences.

The fact that both companies publish sustainability reports showing their goals and developments
in reducing their environmental impact is one commonality between the two companies.
Microsoft places a strong emphasis on reducing carbon emissions, increasing the use of
renewable energy sources, and improving water management in its research. The research from
Amazon covers these subjects as well as trash reduction and eco-friendly packaging. Both

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companies have set ambitious targets for reducing their carbon footprints: Microsoft aims to be
carbon negative by 2030 and Amazon wants to be net-zero by 2040 (Zhai et al., 2021).

Amazon's CSR approach prioritizes sustainability, diversity, and community involvement,

whereas Microsoft's CSR strategy prioritizes empowering individuals and organizations to
achieve more through technology.

But there are considerable differences in their approaches. While Microsoft's CSR report covers
a broader range of topics like diversity and inclusion, human rights, and ethical AI, Amazon's
CSR report is more focused on environmental sustainability. As the both companies focus on
different areas they have diffences in their approaches.

Microsoft's report emphasizes technology's social impact, whereas Amazon's report focuses on
the company's environmental impact. Furthermore, Microsoft's report includes a section on
responsible artificial intelligence, whereas Amazon's report focuses on responsible sourcing.
In addition, Microsoft has won accolades for sharing substantial information on its carbon
footprint and progress toward its objectives, while Amazon has faced criticism for its lack of
transparency (Mary K. Pratt, 2020).

In addition, Amazon and Microsoft have both pledged to use more renewable energy, with
Microsoft leading the charge (Lisa Stiffler, 2022). Microsoft's objective is to use 100%
renewable energy by 2025, which it has already accomplished in its data centers. Amazon, on the
other hand, has been scolded for not doing more to promote sustainable energy (Mélodie Pitre,
2022). In contrast, Amazon and Microsoft are the top two corporate customers of renewable
energy, with Amazon leading the way with 6.2 GW of energy sales. Amazon has also lowered its
carbon footprint by signing on to The Climate Pledge and investing in renewable energy projects
(Kelsey Kusterer Ziser, 2023). The companies have not mentioned any specific information
about money outlays however, Microsoft's overall CSR goals include empowering people,
enhancing communities, and protecting the environment, and the firm has a CSR team known as

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the Microsoft Technology and Corporate Responsibility, or TCR team 1. Amazon has a CSR
strategy and has developed a team to look into data analytics to improve sustainability2.
As CEOs, Jeff Bezos and Satya Nadella have demonstrated a strong commitment to leadership
and thoughtful decision-making, which has benefited in the growth of their companies. By
prioritizing sustainability, innovation, and ethical business practices, Amazon and Microsoft are
setting an example for other companies to follow, and they are assisting in the construction of a
more sustainable and equitable future for all.

Sustainable Development Goals and Sustainability/CSR Report

Amazon and Microsoft care about the Sustainable Development Goals (SDGs) because they both
work in industries that have a significant impact on the environment and society. Both businesses
have made pledges to sustainability and have begun to address parts of the SDGs. Although it is
not exclusive for them, however being the largest company which can have significant impact on
both large and small corporation.

Amazon and Microsoft have set aggressive objectives for decreasing their carbon footprints and
becoming carbon-neutral or negative, making SDG 13: Climate Action one of their top priorities
(Katie M. Palmer And Matt Simon, 2023). Amazon has committed to achieving net-zero carbon
emissions by 2040, while Microsoft has committed to becoming carbon-negative by 2030. Both
companies have made initiatives to reduce energy use, invest in renewable energy, and improve
supply chain transparency. Amazon has pledged to make 50% of its shipping "net carbon zero"
by 2030. Microsoft and 12 other companies have joined Amazon's Climate Pledge, a
commitment to achieve net-zero carbon emissions by 2040 (Prakash & Dolsak, 2020). The effort
aims to meet the United Nations Paris Agreement's climate commitments a decade ahead of
schedule.

In addition, For both Amazon and Microsoft, SDG 8—Decent Work and Economic Growth—is
essential. Both businesses are significant employers with initiatives to support their staff and
promote economic growth. Microsoft has policies in place to promote inclusion and diversity in

1
https://managementweekly.org/microsoft-corporate-social-responsibility/
2
https://www.thomasnet.com/articles/other/amazon-csr-sustainability/

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the workplace. On the other side, Amazon has developed programs to help small businesses and
enhance working conditions for its employees.

Table showing the SDG covered under each head and related achievement:

Sustainable Development Amazon Microsoft

Goal
No Poverty - -
Zero Hunger - -
Good Health and Well- - -
being
Quality Education - Covered
Gender Equality - Covered
Clean Water and Covered Covered
Sanitation
Affordable and Clean Covered Covered
Energy
Decent Work and Covered Covered
Economic Growth
Industry, Innovation and Covered Covered
Infrastructure
Reduced Inequalities - Covered
Sustainable Cities and - Covered
Communities
Responsible Consumption Covered Covered
and Production
Climate Action Covered Covered
Life Below Water - Covered
Life On Land Covered Covered
Peace, Justice and Strong - Covered
Institutions
Partnership for the Goals Covered Covered

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According to corporate social responsibility (CSR), a business should operate in a way that
benefits the economy, society, and environment, as well as being accountable to the people it
impacts. Some businesses are making changes to their operations in order to better support CSR
because they understand how crucial it is to making the world more sustainable.3

In order to helping the needy, the government strives to improve the economy. Businesses can
also contribute by conducting good deeds in the area in which they operate. For instance, by
building things or providing jobs, they can assist improve the neighborhood or teach people new
skills.
Businesses may help to the government's efforts to preserve the environment by conserving
energy, generating less trash, and using water and other natural resources wisely. Companies can
also endeavor to produce items in a sustainable manner, for as by switching to renewable energy
sources from fossil fuels.

Sustainability Phases
Amazon and Microsoft are at the Dunphy, Griffiths & Benn Sustainability Phases' Compliance
stage, according to a study of their CSR and sustainability reporting. The Compliance phase is
defined by a focus on complying with legal and regulatory norms while reducing negative
impacts on the environment and society. Microsoft is at higher stage as different organizations have
praised Microsoft for its efforts to be socially and environmentally responsible. To fulfill the
needs of society and the environment, businesses must continuously change and enhance their
procedures, yet there is always opportunity for improvement. Both companies have committed to
sustainability and have put policies in place to reduce their environmental impact and raise their
social obligations.

Microsoft and Amazon are currently working to make sure they meet sustainability criteria.
However, they have already made a number of efforts to safeguard both society and the
environment. For instance, Amazon has pledged to use renewable energy, cut waste, invest in
reforestation, and achieve net-zero carbon emissions. Microsoft has pledged to achieve carbon
neutrality, introduced initiatives to advance sustainability, and won praise for its support of
workplace diversity. Both businesses have taken part in partnerships focused on sustainability.

3
https://habitat.org.au/housing-and-the-sdgs/?
gclid=CjwKCAjwo7iiBhAEEiwAsIxQEaTmpnY8FzJ3QuFTkQTd9C-
o5bDPcwxARtv2QsvzgNuJ5Z84ketbxRoCddYQAvD_BwE

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Social report Alignment with stated values
Both Amazon and Microsoft have issued social reports explaining their corporate social
responsibility (CSR) actions and goals. To a large extent, these reports reflect the businesses'
stated goals, yet there are certain cases when they fall short. Microsoft and Amazon have
committed to taking specific actions to make their businesses more socially responsible.
However, there are still some issues with how they handle supply chain workers, the lack of
diversity among their workforce, and how they safeguard individuals' privacy. These issues have
been brought to the attention of others, and the businesses are working to address them, but more
has to be done to live up to their promises.

The CSR report of Amozon’s company highlights a wide range of the issues such as
transparency in the supply chain, sustainability of the environment, and involvement of the
community. The company has invested in renewable energy projects for reducing the carbon
footprint by establishing ambitious goals. In its report on corporate social responsibility, Amazon
discusses their attempts to use more environmentally friendly energy.
It's critical to examine how Microsoft and Amazon have acted in the past to see whether they
have taken actions that demonstrate a concern for society. More clean energy has been used by
Amazon, and the company has made an effort to be more transparent about where its items are
sourced. Amazon, though, has drawn criticism for being too huge and harming local firms. 

We need to examine what they are now doing in order to determine what new responsible
behaviors they are attempting. By 2040, Amazon intends to only use sustainable energy and
support small businesses more. Microsoft aims to make sure everyone feels comfortable when
using clean energy.

The focus of the Microsoft company CSR report is to make the future more, egalitarian,
inclusive, reliable, and sustainable for everyone. The company has invested a significant amount
in renewable energy sources and has set aggressive carbon reduction targets (Freitag et al.,
2021). In addition, The company has launched programs such as microsoft philanthropies,
amazon’s digital inclusiona and amazon future engineer to improve digital inclusion and close
the digital gap by prioritizing the targets. The company social reports are open and available
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publicly and provide in-depth information on the company evaluation and track record of its
objectives and achievements of sustainability.

Reflection and influence

Working in groups or the specific study of two companies' CSR and Sustainability reports was
fun with a great experience. The discussion confirmed my conclusions that the companies have
made great progress in their sustainability role and initiatives in the industry. However, The
company's social reports are more concerned with the compliance of standards and regulatory
compliance than proactive efforts to improve and bring out environmental and social changes.
Within the group, we have also highlighted our knowledge of the relevance of the Sustainable
Development Goals (SDGs) of the companies and how it is being addressed in SDGs such as
SDG 8: Decent Work and Economic Growth and SDG 13: Climate Action.
We examined reports from Amazon and Microsoft regarding their efforts to be more sustainable
as a team. We discussed whether they were genuinely performing well or only obeying the rules.
We examined their efforts to accomplish the Sustainable Development Goals and spoke about
how well they were succeeding.4 We also discussed what they had done in the past and whether
they were making enough progress today.

Overall, the group research has provided me a new insight into technology's and data's position
in CSR, as well as the initiatives it has taken to promote sustainability, accountability, and
transparency. Hearing the perspectives and ideas of my group mates helped help me
comprehend, analyze, and increase my understanding of the problems and sustainability in the
corporate sector.

4
https://www.foodbanking.org/advancing-the-sustainable-development-goals/?
utm_source=google&utm_medium=ad_grant&utm_campaign=awareness_sdgs&gclid=CjwKCAjwo7iiBhA
EEiwAsIxQETAQP-NsHtGnjZ2eJtswlJfL0S3FC2yGqQk8gYJi5p1Mno3pVwziKhoC8-YQAvD_BwE

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References:
Air, P. (2021). Delivering Progress Every Day Amazon’s 2021 Sustainability Report About This
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Freitag, C., Berners-Lee, M., Widdicks, K., Knowles, B., Blair, G. S., & Friday, A. (2021). The
real climate and transformative impact of ICT: A critique of estimates, trends, and
regulations. Patterns, 2(9), 100340. https://doi.org/10.1016/j.patter.2021.100340
Guardian staff and agencies. (2020). Microsoft pledges to be “carbon negative” by 2030 |
Microsoft | The Guardian. The Guardian.
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negative-2030

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KATIE M. PALMER AND MATT SIMON. (2023). Apple Sets Climate Goals for 2030, Joining
Amazon and Microsoft | WIRED. WIRED. https://www.wired.com/story/apple-sets-climate-
goals-for-2030/
KELSEY KUSTERER ZISER. (2023). AWS, Microsoft lead the charge in data center
sustainability | Light Reading. LightReading. https://www.lightreading.com/climate-
change/aws-microsoft-lead-charge-in-data-center-sustainability/d/d-id/783387
Marissa Dean, P. D. (2023a). Amazon Corporate Social Responsibility (CSR) and Sustainability.
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Mary K. Pratt. (2020). Amazon’s environmental impact delivers climate change concerns |
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Mélodie Pitre. (2022). Cloud carbon footprint: Do Amazon, Microsoft and Google have their
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cloud
Prakash, A., & Dolsak, N. (2020). The Climate Leadership Race: Microsoft’s Climate Moonshot
and Amazon’s Climate Pledge. Forbes.
Sasja Beslik. (2020). How sustainable is Amazon? An ESG analysis of the retail giant | by Sasja
Beslik | Medium. https://sasjabeslik.medium.com/how-sustainable-is-amazon-an-esg-
analysis-of-the-retail-giant-e8b07cc8a8eb
STIFFLER, L. (2022). Amazon and Microsoft led the world in corporate purchases of clean
energy in 2021 – GeekWire. Geekwire. https://www.geekwire.com/2022/amazon-and-
microsoft-led-the-world-in-corporate-purchases-of-clean-energy-in-2021/
Yu, W., Hassan, A., & Adhikariparajuli, M. (2022a). How Did Amazon Achieve CSR and Some
Sustainable Development Goals (SDGs)—Climate Change, Circular Economy, Water
Resources and Employee Rights during COVID-19? Journal of Risk and Financial
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Yu, W., Hassan, A., & Adhikariparajuli, M. (2022b). How Did Amazon Achieve CSR and Some

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 Sustainable Development Goals (SDGs)—Climate Change, Circular Economy, Water
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Péan, C., Pidcock, R., Connors, S., Matthews, J. B. R., Chen, Y., Zhou, X., Gomis, M. I.,
Lonnoy, E., Maycock, T., Tignor, M., & Waterfield, T. (2021). World Meteorological
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