Amazon announces big changes to packages to help companies hit net zero

The tech behemoth is changing the way its parcels are packed as it announces its Christmas delivery cut off times.

Amazon Australia country manager Janet Menzies says the new recyclable packaging took about two years to develop.

Amazon is scrapping single-use plastics in favour of recyclable paper and cardboard packaging – and is making its technology freely available to help other companies reach their net zero targets.

Australia produces about 1.2 million tonnes of plastic packaging a year, with online shopping one of the biggest culprits.

Amazon has been steadily reducing the amount of packaging it uses, working with suppliers to ship items in their original boxes rather than add extra Amazon-branded packaging. Country Manager Janet Menzies said this has removed about 3 million tonnes of unnecessary packaging since 2015.

Ms Menzies said the biggest challenge was ensuring recyclable packaging was robust enough to withstand delivery – a process which took two years to achieve. It has worked with suppliers, including Visy, to ensure that products are protected adequately.

“It’s taken a long time for us to develop it. The most important thing is for customer orders to arrive safely and in perfect condition. So we’ve had to spend time working with our partners to make sure that we test the padded paper alternatives,” Ms Menzies said.

“Believe it or not, we’ve had five different iterations of the new envelopes that customers are now seeing.

“We have got great partnerships with local vendors and that includes Visy. We really find that they’re interested in innovation.”

Amazon's Automated Paper Packaging Machine.

And Ms Menzies said Amazon would make that innovation freely available via its “sustainability exchange”.

“That information that might have been proprietary in the past, but it isn’t anymore. Our view is, if it can help companies of all sizes take meaningful steps towards net zero, then that’s a contribution we can make.

“And so one of the things you can find in the exchange is packaging, playbooks, case studies and other insights, so that small businesses, or any kind of our any kind of vendors, can leverage the learnings we’ve had so that they don’t have to go through five iterations of packaging, they actually kind of can get to the answer more quickly, which we think can be a significant contribution to productivity and innovation.”

Australian Packaging Covenant chief executive Chris Foley said Australians generate 1.2 million tonnes of plastic packaging each year, with single-use plastics posing a significant challenge.

“Amazon’s decision to replace plastic delivery bags with recyclable alternatives highlights their strong commitment to more circular packaging practices. This initiative showcases their ability to pivot towards solutions that are not only better for the environment but also aligned with the growing demand for more readily recyclable materials,” Mr Foley said.

Some of Amazon's new recyclable packaging.

Tech companies have been eager to highlight their green credentials, given the amount of electricity and water data centres, which power the artificial intelligence boom, produce.

Uber has reiterated its commitment to be a fully electric, zero-emission platform by 2030 in Canada, Europe and the US, and by 2040 globally, despite sluggish EV take-up. It’s also developing a new sustainable packaging standard for its Eats food delivery product with Planet Ark, saying non-reusable materials that protect takeaway orders represent one of the “hardest sustainability problems”.

Apple has redesigned its popular products, including iPhone, its watches and iPads to be more sustainable. It says the new iPhone 16 Pro and iPhone 16 Pro Max feature more than 25 per cent recycled materials. Robin Khuda, founder and chief executive of data centre operator AirTrunk, says the company is one of the biggest buyers of renewable electricity and is stepping up investment in battery storage.

Amazon – the world’s biggest data centre operator via its subsidiary AWS – plans to hit zero carbon emissions by 2040 and has been steadily increasing investments in its $US2bn ($2.98bn) Climate Pledge Fund to meet that target.

“We are proud of this progress, but it’s just the beginning for us, and we will keep innovating and finding ways to improve our packaging,” Ms Menzies said.

Ms Menzies also announced Christmas delivery cut off times. She said many Australians could order Christmas gifts from Amazon until December 22, while non-Prime customers could order up until December 20 for items to arrive under the tree in time.