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Alphabet (GOOGL) Boosts Zero Carbon Efforts With New Green Power
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Alphabet (GOOGL - Free Report) is making concerted efforts toward reducing its carbon footprint and achieving its zero-carbon goals. This is evident from the latest strategic step taken by its division, Google.
The search giant has bought a stake in a Taiwan-based solar power firm, New Green Power, owned by a fund managed by BlackRock's Climate Infrastructure business.
Google strives to cut its greenhouse gas emissions on the back of its latest move in the Asia-Pacific region, where decarbonization is challenging due to less developed infrastructure and several corporate restrictions.
It intends to purchase up to 300 megawatts of renewable energy from New Green Power.
Google is also planning to offer solar power to some of its suppliers and manufacturers in the region in order to reduce its Scope 3 emissions.
Zero-Carbon Move Gains Steam
Google, which has been carbon-neutral since 2007, is gearing up to achieve net-zero emissions across all of its operations and value chain by 2030. The company aims to reduce 50% of its combined Scope 1, 2 and 3 absolute emissions before 2030. Its global operations are powered by 64% carbon-free energy, including wind and solar, at present.
Recently, Google partnered with NV Energy, a utility company owned by Berkshire Hathaway, to power its data centers located in Nevada with geothermal electricity. Google strives to boost the amount of carbon-free geothermal electricity from 3.5 megawatts to 115 megawatts into the local power grid for its operations over the next six years.
We believe Google’s growing investments in nature-based and technology-based carbon removal solutions to neutralize its remaining emissions are important as it is witnessing increasing emissions due to solid demand for data-processing capacity to power AI applications.
Google’s shift from fossil fuels to clean energy is anticipated to reduce costs in the near and long term, which is a plus.
Bottom Line
The carbon-free drive is gaining strong traction across the technology sector.
Not only Alphabet but companies like Amazon (AMZN - Free Report) , Microsoft (MSFT - Free Report) and Lam Research (LRCX - Free Report) are also taking strong initiatives to lower overall carbon footprints and cut energy bills substantially.
Amazon is known as the biggest corporate investor in renewable energy. Its growing investments in the projects have accelerated the pace of its journey toward powering its infrastructure with 100% renewable energy. The goal was initially targeted to be met by 2030, which is now expected to be achieved by 2025. In 2021, the company reached 85% renewable energy across its business.
Microsoft is gathering steam to become carbon-negative by 2030. Further, MSFT aims to remove all green gas emissions by 2050.
Lam Research is committed to reaching its goal of carbon net-zero emissions by 2050 and operating business on 100% renewable energy by 2030.
Conclusion
In this era, investors worldwide not only look at how much a company is capable of generating high profits but also consider how much its business is sustainable for the future. Hence, environmental, social and governance factors have become crucial for building a sustainable business.
Image: Bigstock
Alphabet (GOOGL) Boosts Zero Carbon Efforts With New Green Power
Alphabet (GOOGL - Free Report) is making concerted efforts toward reducing its carbon footprint and achieving its zero-carbon goals. This is evident from the latest strategic step taken by its division, Google.
The search giant has bought a stake in a Taiwan-based solar power firm, New Green Power, owned by a fund managed by BlackRock's Climate Infrastructure business.
Google strives to cut its greenhouse gas emissions on the back of its latest move in the Asia-Pacific region, where decarbonization is challenging due to less developed infrastructure and several corporate restrictions.
It intends to purchase up to 300 megawatts of renewable energy from New Green Power.
Google is also planning to offer solar power to some of its suppliers and manufacturers in the region in order to reduce its Scope 3 emissions.
Zero-Carbon Move Gains Steam
Google, which has been carbon-neutral since 2007, is gearing up to achieve net-zero emissions across all of its operations and value chain by 2030. The company aims to reduce 50% of its combined Scope 1, 2 and 3 absolute emissions before 2030. Its global operations are powered by 64% carbon-free energy, including wind and solar, at present.
Recently, Google partnered with NV Energy, a utility company owned by Berkshire Hathaway, to power its data centers located in Nevada with geothermal electricity. Google strives to boost the amount of carbon-free geothermal electricity from 3.5 megawatts to 115 megawatts into the local power grid for its operations over the next six years.
We believe Google’s growing investments in nature-based and technology-based carbon removal solutions to neutralize its remaining emissions are important as it is witnessing increasing emissions due to solid demand for data-processing capacity to power AI applications.
Google’s shift from fossil fuels to clean energy is anticipated to reduce costs in the near and long term, which is a plus.
Bottom Line
The carbon-free drive is gaining strong traction across the technology sector.
Not only Alphabet but companies like Amazon (AMZN - Free Report) , Microsoft (MSFT - Free Report) and Lam Research (LRCX - Free Report) are also taking strong initiatives to lower overall carbon footprints and cut energy bills substantially.
Amazon is known as the biggest corporate investor in renewable energy. Its growing investments in the projects have accelerated the pace of its journey toward powering its infrastructure with 100% renewable energy. The goal was initially targeted to be met by 2030, which is now expected to be achieved by 2025. In 2021, the company reached 85% renewable energy across its business.
Microsoft is gathering steam to become carbon-negative by 2030. Further, MSFT aims to remove all green gas emissions by 2050.
Lam Research is committed to reaching its goal of carbon net-zero emissions by 2050 and operating business on 100% renewable energy by 2030.
Conclusion
In this era, investors worldwide not only look at how much a company is capable of generating high profits but also consider how much its business is sustainable for the future. Hence, environmental, social and governance factors have become crucial for building a sustainable business.
Given this scenario, Alphabet, which carries a Zacks Rank #3 (Hold) at present, is moving steadily toward attaining its zero-carbon goals. You can see the complete list of today’s Zacks #1 Rank stocks (Strong Buy) here.
Alphabet has gained 30.6% on a year-to-date basis, outperforming the Zacks Computer & Technology sector’s return of 25%.