This Kellogg grad is leading Amazon’s bold bet on climate tech

Matt Peterson ’06 MBA is spearheading Amazon’s $2 billion Climate Pledge Fund to accelerate the tech giant’s progress toward net zero.
Written by:
LeeAnn Shelton
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Kellogg alum Matt Peterson holding a microphone and speaking during an event at the Kellogg Global Hub. He is wearing a light blue checkered shirt and is framed in soft natural light, with blurred attendees visible in the background.
“Because we [at Amazon] operate in so many industries, the sustainability challenges the world faces are the same ones we face,” says Peterson.

How will one of the world’s biggest companies reach net zero within the next 15 years?  

It’s a daunting challenge — and one that Kellogg graduate Matt Peterson ’06 MBA is proud to tackle. As head of Amazon’s Climate Pledge Fund, he oversees investments in innovative startups that could help the company decarbonize its operations. 

Amazon has already hit a major milestone: it met its goal of using 100% renewable energy in 2023, years ahead of schedule, making it the world’s largest corporate purchaser of renewable energy. Its next ambitious target? Achieving net zero carbon by 2040. 

A graduate of the Two-Year MBA Program, Peterson recently visited campus to meet with Kellogg students and share Amazon’s innovative approaches to funding sustainability-focused ventures.  

No ‘one-size-fits-all’ solution 

Although many think of Amazon as a tech company, Peterson pointed out that its diverse businesses—from data centers to logistics to Whole Foods — require tailored sustainability strategies. 

“You need a holistic strategy that addresses multiple areas,” he said. “Because we operate in so many industries, the sustainability challenges the world faces are the same ones we face.” 

At the same time, Amazon’s vast scale means even small sustainability improvements can create a ripple effect across its operations and supply chain. “We need to make these investments now to prepare for the future as a company, and hopefully these solutions can extend out to the rest of the world too,” he said.

Founding the Climate Pledge Fund 

The idea for the Climate Pledge Fund received swift approval from founder Jeff Bezos, who suggested doubling the initial $1 billion commitment to $2 billion. 

“We just sent him an email, and within an hour, he responded, ‘Yes, this is a great idea, I love it.’ If anything, his question was, why not make it bigger?” Peterson recalled. 

The fund invests in both early- and later-stage companies, focusing on technologies Amazon can integrate into its operations. Its eight core areas include energy, building technologies, transportation, manufacturing and materials, the circular economy, food and agriculture, carbon removal and water. 

While the fund aims for a positive return, it has no strict time horizon, making its “patient capital” particularly appealing to climate tech startups, whose solutions often take years to develop. 

“We always ask, ‘Is this company developing something Amazon will eventually use? Or can we help it succeed by being a major customer?’” Peterson said. “If it works for Amazon, it likely works for many other companies too.” 

Breaking down the ‘big rocks’

Early investments have focused on what Peterson calls the “big rocks” of decarbonization — areas that, if addressed, could significantly reduce Amazon’s emissions. 

  • Electric Vehicles: Amazon is electrifying its delivery fleet, recently receiving its 20,000th electric van from Rivian. The company aims to have 100,000 electric vans on the road by 2030. “We’ve already delivered over a billion packages using Rivian vans in 2024,” Peterson said. 
  • Advanced Nuclear Energy: As the world electrifies, new sources of carbon-free power will be essential. That’s why Amazon invested in X-energy and partnered with utilities in Washington and Virginia to support small modular reactor (SMR) development. These compact reactors can be built more quickly than traditional nuclear plants. 
  • Low-Carbon Fuels: Transportation accounts for 25% of global carbon emissions. Amazon invested in Infinium when its low-carbon fuel was still just a concept. “This is an early seed we’re planting,” Peterson said. “If it works, it could be one of the biggest levers we can pull.” 
  • Sustainable Building Materials: Amazon has invested in CarbonCure, a company that captures and sequesters carbon dioxide within concrete, making it stronger in the process. “Our latest buildings, including HQ2 in Virginia, all use CarbonCure,” Peterson said. 

Throughout the Climate Pledge Fund’s efforts, Peterson and his team leverage Amazon’s strengths in incubating new ideas, fostering innovation and identifying good investments. “With every company we invest in, we hope to plant the seeds for a result that goes beyond just Amazon and hopefully extends to the world as a whole, he said.”

Read next: Club Spotlight: The Kellogg Energy & Sustainability Club