Transitioning supply chain operations to run on renewable energy sources is gaining momentum in the retail sector. Tapping into clean energy operations can assist businesses in reducing operational costs, alongside meeting their set sustainability goals. Retail can’t run without power, and for a business to be sustainable, all of its supply chain needs to be considered; including how the electricity is generated to power the operations. As one of the largest users of electricity across Austral
ustralia and New Zealand, Woolworths Group has set a goal to have all its operations in Australia and New Zealand running on 100 per cent renewable electricity by 2025.
Woolworths’ total renewable electricity in FY24 was 23.5 per cent, and with secure pathways including a partnership with CleanCo in Queensland and contracts in other states, the retailer is set to reach its renewable goal in line with the RE100.
E-commerce behemoth Amazon has partnered with Global Power Generation to generate 337,000 megawatt-hours of clean energy annually. This project is a key part of Amazon’s ongoing efforts to transition operations to renewable energy sources.
Amazon and Global Power Generation recently launched the Hawkesdale Wind Farm in Victoria, a 97-megawatt renewable energy project that will generate enough electricity to power about 67,000 Australian homes.
Adding to a global portfolio of over 600 renewable energy projects, Hawkesdale is Amazon’s first utility-scale renewable energy investment in Victoria. It will help offset the electricity consumed by Amazon’s local operations while benefitting other energy users, including local businesses, community services and households.
Amazon views building new renewable energy projects as an effective way to slow the speed of climate change and has now invested in a total of eight renewable energy projects in Australia.
In 2023, Amazon met its goal to match all of the electricity consumed across its operations – including data centres, corporate buildings and fulfilment centres – with 100 per cent renewable energy, seven years ahead of its original 2030 timeline.
Michael Cooley is the director of public policy for Amazon Australia, New Zealand, and Southeast Asia, and spoke to Inside Retail about how Amazon’s local sustainability efforts are translating into its retail operations.
Inside Retail: How does transitioning to renewable energy through projects like the Hawkesdale Wind Farm help Amazon meet growing customer expectations for sustainability in retail?
Michael Cooley: We are always looking for ways to move faster, deliver the best possible customer experience, and innovate. We regularly hear from our customers, corporate partners, and employees about how much they care about sustainability.
Investments like the Hawkesdale Wind Farm help us meet the needs of our customers, as well as our commitment to reach net zero carbon by 2040.
IR: How do Amazon’s renewable energy projects align with the company’s broader retail strategy, particularly in areas like sustainability-driven product offerings or eco-friendly packaging?
MC: When it comes to sustainability, we have to examine every part of our business. The packages that customers receive on their doorsteps are often the most visible example, and at the end of last year, we stopped packing products in single-use plastic delivery bags and envelopes in our Australian distribution network – meaning that all delivery packaging sent from an Australian fulfilment centre can go directly in the recycling bin.
We also invent, develop, and deliver products and services that help our customers on their sustainability journeys. Amazon Second Chance is a resource page where customers can find information on how to recycle our different types of packaging, resources to recycle and trade in electronics, and shop pre-owned items.
IR: Could you share how Amazon plans to integrate renewable energy into your retail supply chain, especially as you expand in Australia?
MC: As we continue to grow in Australia, we’ll continue to invest in new carbon-free energy projects. We also focus on constructing our buildings more sustainably, including commissioning rooftop solar projects like the four on our fulfilment centre rooftops in Sydney, Melbourne and Perth; as well as operating our data centres more efficiently.
IR: What role do renewable energy investments play in ensuring Amazon’s retail operations remain competitive as the global retail industry increasingly moves toward more sustainable practices?
MC: Amazon has always been a company focused on customers rather than competitors, and we know our customers care about sustainability.
For the fifth year in a row, we’ve been named by Bloomberg NEF as the largest corporate purchaser of renewable energy globally, according to Bloomberg NEF, and have supported more than 600 wind and solar projects to date.
While we’re proud of this achievement, we also applaud and encourage the tremendous efforts of other companies in this space to help our world transition toward a carbon-free energy future.