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Amazon trailers are parked at an Amazon Air gateway at Miami International Airport in Miami, Florida, on Sept. 26, 2023.

Joe Raedle | Getty Images

Amazon is warning investors that the climate crisis may have a material effect on its business.

In the risk factors section of its 2023 financial filing released Friday, Amazon added language that says climate change could cause its sales and operating results to fluctuate, making it harder to sustain growth or resulting in decreased revenue.

The update reflects the growing climate threats and the costs they pose to businesses. Amazon first included climate change among its risk factors in its 2021 annual report, but this year, it added expanded disclosures.

The company said climate change could lead to “increased operating costs due to more frequent extreme weather events or climate-related changes, such as rising temperatures and water scarcity; increased investment requirements associated with the transition to a low-carbon economy; decreased demand for our products and services as a result of changes in customer behavior; increased compliance costs due to more extensive and global regulations and third-party requirements; and reputational damage resulting from perceptions of our environmental impact.”

The United Nations last September warned of a “rapidly closing window of opportunity” to cut emissions caused by fossil fuels and ensure global warming stays below 2 degrees Celsius, the limit set by the 2015 Paris Accord. In January, the U.N. weather agency confirmed 2023 was the hottest year on record.

In addition to the humanitarian crises, economists have signaled extreme weather caused by climate change has led to supply chain disruptions and worker shortages.

Amazon has vast operations spanning more than 100 countries and regions, and employed 1.52 million people globally, as of Dec. 30.

The company has set out ambitious climate goals for itself, including a commitment to being carbon neutral by 2040. It also aims to power its business operations with renewable energy sources by 2025, and has amassed a portfolio of more than 500 wind and solar projects globally.

The company plans to reduce its reliance on gas-powered delivery vans by putting 100,000 electric Rivian vans on the road by 2030.

In 2020, Amazon bought the naming rights to a professional sports arena in downtown Seattle, and branded it Climate Pledge Arena.

Last July, Amazon lowered its carbon emissions for the first time since it began disclosing the figure four years ago.

The company has faced pressure from its corporate employees to address its environmental impact, including how its warehouse and logistics network contributes to air pollution in communities of color where some of its facilities are located.

Lawmakers have probed how Amazon manages its frontline workforce in extreme weather events, after a deadly warehouse collapse in 2021. Amazon workers have also called for more heat wave protections. The company has said it has heat-related safety protocols that often exceed federal guidance.

WATCH: How the tough job of Amazon delivery has changed with new Rivian vans

How the tough job of Amazon delivery has changed with new Rivian vans

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The UK wants to do its ‘own thing’ on AI regulation, suggesting a divergence from U.S. and EU

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The UK wants to do its 'own thing' on AI regulation, suggesting a divergence from U.S. and EU

Jaque Silva | Nurphoto | Getty Images

LONDON — The U.K. says it wants to do its “own thing” when it comes to regulating artificial intelligence, hinting at a possible divergence from approaches taken by its main Western peers.

“It’s really important that we as the U.K. do our own thing when it comes to regulation,” Feryal Clark, Britain’s minister for AI and digital government, told CNBC in an interview that aired Tuesday.

She added the government already has a “good relationship” with AI companies like OpenAI and Google DeepMind, which have voluntarily opened their models up to the government for safety testing purposes.

“It’s really important that we bake in that safety right at the beginning when models are being developed … and that’s why we’ll be working with the sector on any safety measures that come forward,” Clark added.

UK can do its 'own thing' on AI regulation, minister says

Her comments echoed remarks from Prime Minister Keir Starmer on Monday that Britain has “freedom now in relation to the regulation to do it in a way that we think is best for the U.K.” after Brexit.

 “You’ve got different models around the world, you’ve got the EU approach and the U.S. approach – but we have the ability to choose the one that we think is in our best interest and we intend to do so,” Starmer said in response to a reporter’s question after announcing a 50-point plan to make the U.K. a global leader in AI.

Divergence from the U.S., EU

However, so far, the U.K. is yet to confirm details on proposed AI safety legislation, instead saying it will consult with the industry before proposing formal rules.

“We will be working with the sector to develop that and bring that forward in line with what we said in our manifesto,” Clark told CNBC.

Chris Mooney, partner and head of commercial at London-based law firm Marriott Harrison, told CNBC that the U.K. is taking a “wait and see” approach to AI regulation even as the EU is forging ahead with its AI Act.

“While the U.K. government says it has taken a ‘pro-innovation’ approach to AI regulation, our experience of working with clients is that they find the current position uncertain and, therefore, unsatisfactory,” Mooney told CNBC via email.

One area Starmer’s government has spoken up on reforming rules for AI has been around copyright.

Late last year, the U.K. opened a consultation reviewing the country’s copyright framework to assess possible exceptions to existing rules for AI developers using artists and media publishers’ works to train their models.

Businesses left uncertain

Sachin Dev Duggal, CEO of London-headquartered AI startup Builder.ai, told CNBC that, although the government’s AI action plan “shows ambition,” proceeding without clear rules is “borderline reckless.”

“We’ve already missed crucial regulatory windows twice — first with cloud computing and then with social media,” Duggal said. “We cannot afford to make the same mistake with AI, where the stakes are exponentially higher.”

“The U.K.’s data is our crown jewel; it should be leveraged to build sovereign AI capabilities and create British success stories, not simply fuel overseas algorithms that we can’t effectively regulate or control,” he added.

Details of Labour’s plans for AI legislation were initially expected to appear in King Charles III’s speech opening U.K. Parliament last year.

However, the government only committed to establishing “appropriate legislation” on the most powerful AI models.

“The U.K. government needs to provide clarity here,” John Buyers, international head of AI at law firm Osborne Clarke, told CNBC, adding he’s learned from sources that a consultation for formal AI safety laws is “waiting to be released.”

“By issuing consultations and plans on a piecemeal basis, the U.K. has missed the opportunity to provide a holistic view of where its AI economy is heading,” he said, adding that failure to disclose details of new AI safety laws would lead to investor uncertainty.

Still, some figures in the U.K. tech scene think that a more relaxed, flexible approach to regulating AI may be the right one.

“From recent discussions with the government, it is clear that considerable efforts are underway on AI safeguards,” Russ Shaw, founder of advocacy group Tech London Advocates, told CNBC.

He added that the U.K is well positioned to adopt a “third way” on AI safety and regulation — “sector-specific” regulations that rules to different industries like financial services and health care.

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China considers selling TikTok U.S. operations to Musk, Bloomberg reports

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China considers selling TikTok U.S. operations to Musk, Bloomberg reports

Jakub Porzycki | Nurphoto | Getty Images

The Chinese government is considering a plan that would have Elon Musk acquire TikTok’s U.S. operations to keep the app from being effectively banned, Bloomberg News reported on Monday.

The contingency plan is one of several options China is exploring as the U.S. Supreme Court determines whether to uphold a law that calls for China-based ByteDance to divest TikTok’s U.S. business by Jan. 19, the report said, citing anonymous sources.

After that deadline, third-party Internet service providers would be penalized for supporting TikTok’s operations in the country.

Under the plan, Musk would oversee both X, which he currently owns, and TikTok’s U.S. business, Bloomberg said. However, Chinese government officials haven’t yet decided on whether it would proceed, the report said, noting that the plan is still preliminary.

It’s unclear whether ByteDance knows about the Chinese government’s plans and TikTok and Musk’s involvement in the discussions, the report said. Senior Chinese officials are debating contingency plans involving TikTok’s future in the U.S. as part of larger discussions about working with President-elect Donald Trump, the report added.

A TikTok spokesperson said in an email to CNBC, “We can’t be expected to comment on pure fiction.” X didn’t immediately respond to a request for comment.

Last week, the Supreme Court held oral arguments about the law potentially banning TikTok, which President Joe Biden signed in April. TikTok’s legal team argued that the law violates the free-speech rights of the millions of users in the U.S. while the U.S. government said that ByteDance’s ownership of TikTok poses a national security risk.

With the Supreme Court appearing to side with the government, TikTok could turn to Trump, when his second term begins on Jan. 20. Trump, who favored a TikTok ban during his first administration, has since flip-flopped on the matter. Late last month, he urged the Supreme Court to intervene and forcibly delay implementation of Biden’s ban to give him time to find a “political resolution.”

Trump’s rhetoric on TikTok began to turn after he met in February with billionaire Jeff Yass, a Republican megadonor and a major investor in ByteDance who also owns a stake in the owner of Truth Social, Trump’s social media company.

WATCH: SCOTUS hears TikTok ban case

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IAC approves spinoff of home improvement marketplace Angi

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IAC approves spinoff of home improvement marketplace Angi

Joey Levin, CEO of IAC.

Anjali Sundaram | CNBC

Barry Diller’s IAC said Monday that its board approved the spinoff of Angi, the home improvement marketplace the company acquired in 2017.

IAC said it expects the transaction to close in the second quarter of the year. The two companies will post their respective fourth-quarter results when IAC reports on Feb. 11. Angi was founded in 1995 as Angie’s List, which went public on the Nasdaq in 2011.

As part of the spinoff, IAC CEO Joey Levin will leave his role and become an advisor to the company. Levin will also take on a new role as Angi’s executive chairman, serving as the marketplace’s senior executive alongside CEO Jeff Kip, IAC said.

“Joey Levin has been an exemplary leader of IAC, creating significant value during his nearly decade-long tenure as IAC CEO,” Diller, IAC’s chairman, said in a statement.

Upon Levin’s vacancy, IAC will operate without a new CEO, the company said. IAC’s top execs will report directly to Diller, as will publisher Dotdash Meredith, the company’s largest business. The rest of IAC’s units will report to operating chief Christopher Halpin.

IAC has previously used no-CEO structures when reorganizing its businesses. Most recently, in 2013, then-CEO Greg Blatt stepped down from the role to become chairman of the newly formed Match Group division.

“Each of IAC and Angi has a vigorous future, and I expect to remain an active participant in both,” Levin said in a statement.

As part of the spinoff, IAC shareholders will get direct ownership of Angi, IAC said.

IAC first announced it was considering a spinoff of Angi in November. At the time, the company said Angi’s revenue declined 16% year over year to $296.7 million during the third quarter. The company attributed the slide to reduced sales and marketing spend, which led to a decrease in service requests and lower acquisition of new professionals.

IAC acquired Angie’s List in a deal valued at more than $500 million. It merged the site with HomeAdvisor, creating a new public company. Angi currently has a market cap of about $770 million, and IAC owns 85% of it.

The spinoff has been under consideration for several years, but IAC postponed the effort in 2019 as it completed the Match Group transaction. Match owns dating services including Tinder, Match and Hinge.

IAC has become known for incubating businesses and spinning them off into separate companies. It’s done the same with Expedia, Ticketmaster and LendingTree, among others.

WATCH: IAC CEO on M&A opportunities, spinoff from ANGI and AI

IAC CEO on M&A opportunities, spinoff from ANGI and AI

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