The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

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Tuesday, October 22, 2024

Strategic CSR - Google

The article in the url below is, on the face of it, a step back in Google's environmental performance:

"Google has ended its mass purchase of cheap carbon offsets and thus stopped claiming that its operations are carbon neutral, according to the tech giant's latest environmental report. The company now aims to reach net-zero carbon emissions by 2030. The Alphabet Inc. unit has claimed that it's been carbon neutral in its operations since 2007. The status was based on purchasing carbon offsets to match the volume of emissions that were generated from its buildings, data centers and business travel. But in its latest report, the company states: 'Starting in 2023, we're no longer maintaining operational carbon neutrality.'"

In reality, however, I think it represents a mature step in the way that we think (and talk) about reducing carbon emissions. In other words, it suggests Google is serious about reducing actual emissions, not simply trying to cover up emissions by purchasing ineffective carbon offsets (most of which are symbolic, if not downright fraudulent):

"It's a sign of a company learning to adapt to strengthening sustainability criteria. 'In line with a changing market — including a more robust carbon-removal ecosystem we helped catalyze — we've shifted our strategy,' a Google spokesperson said. 'We aim to avoid or reduce greenhouse-gas emissions to reach our absolute emissions reduction target.'"

In general, the carbon environment is getting tougher for any company that is involved with A.I. (see Strategic CSR – Three Mile Island):

"The changes to its carbon credits purchase strategy have coincided with Google and Big Tech's push on artificial intelligence, which Bloomberg News investigation has shown is extremely resource intensive. As a result, Google's total planet-warming emissions in 2023 are 48% higher than 2019. In that period, its total energy consumption has doubled."

But, this does not dismiss the heightened honesty with recognizing the carbon offset industry for what it is (see Strategic CSR – Carbon offsets):

"The definition of carbon neutral is when an entity balances its planet-warming emissions with techniques that draw down the same amount of carbon dioxide from the air. However, most companies making carbon-neutral claims today rely on cheap offsets — where one credit equals a ton of emissions — that are derived from projects that claim to protect forests or deploy clean energy and avoid the production of emissions. While those are actions that should help the world tackle climate change, experts have found that the purchase of the emissions-avoidance offsets does little to actually reduce emissions. Many deforestation projects exaggerate their claims, while most renewable energy plants would have been built without the small sums raised by the offset purchased. That's why most carbon-neutral claims from companies and products are questionable."

And Google has been a large contributor to the problem, previously:

"In 2022, Google bought nearly 3 million tons of such offsets to counterbalance its direct emissions and business-travel emissions. Though the company did not declare what specific projects those offsets came from, its sustainability report stated that the credits were verified 'under the Climate Action Reserve (CAR), American Carbon Registry (ACR), Verified Carbon Standard (VCS), or the UNFCCC Clean Development Mechanism.'"

This step is much more than a change in tone. It is a significant reassessment of its substantive understanding of the underlying problem:

"After offsets-based claims from companies came under scrutiny, Google stated in a Bloomberg Green story in 2021 that it aimed to reach carbon neutrality without offsets. But now, instead of bulk purchase of emissions-avoidance offsets, Google says it's going to focus on absolute reductions in emissions and buy carbon-removal credits for its residual emissions. These tend to be more expensive, but also have greater chance of verifiably drawing down carbon dioxide from the air."

In other words, a meaningful step forward.

Take care
David

David Chandler
© Sage Publications, 2023

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Google Is No Longer Claiming to Be Carbon Neutral
By Akshat Rathi
July 8, 2024
Bloomberg