Beyond Fossil Fuels’ Post

🌍 Big Tech and the Future of Carbon Accounting: Navigating the Complexities of Sustainable Accountability In the relentless pursuit of net zero, the titans of the tech industry—Amazon, Meta, and Google—find themselves at the helm of a critical discourse on the evolution of greenhouse gas emissions accounting. These corporations, while lauded for their ambitious sustainability milestones, are grappling with the complexities of accurately reflecting their true carbon footprints. The ongoing debate is a clash of ideologies. On one side, Amazon and Meta champion a more adaptable approach to emissions accounting, which, though pragmatic, raises concerns about potential obfuscation of genuine environmental impact. Conversely, Google advocates for a rigorous framework, intricately linking energy consumption to local grids and temporal specificity—an approach that, while arguably more reflective of reality, is criticised for its financial and operational burdens. As the contours of these regulations are still being drawn the implications for global climate objectives are profound. #Sustainability #ClimateChange #NetZero #BigTech #RenewableEnergy #CarbonAccounting #CorporateGovernance

Big Tech's green ambitions are under scrutiny as they navigate the complexities of carbon accounting. As Amazon, Meta, and others push to reshape net-zero rules, questions arise about the transparency and real-world impact of their environmental claims. Are these companies leading the way in sustainability, or simply rewriting the rules to their advantage? Explore the debate in this insightful Financial Times piece. #Sustainability #NetZero #BigTech #FTArticle #FTBigRead

Kudos to the Financial Times for making the otherwise wonky and dry topics of carbon accounting, standards reform, and corporate climate commitments approachable and engaging. In the article, Michael Terrell puts it well: we should be thinking of climate change as a “market and a technology challenge”, not an “accounting challenge.” Check out "Amazon and Meta’s bid to rewrite the rules on net zero" → https://lnkd.in/g6Rj74n6

This FT article highlights the conflicting approaches taken by tech giants like Amazon, Meta, and Google - but the bottom line is clear. The debate over how to measure and report emissions has never been more critical. Amazon, for instance, claims to have reached its 100% renewable energy goal ahead of schedule, yet it remains a heavy polluter when you dig deeper into how their emissions are calculated. This duality is possible because of current carbon accounting rules, which allow companies to use investments in clean energy to offset their real-world emissions. This system is "akin to buying the right from a fitter colleague to say you have cycled to work, even though you arrived by a car that runs on petrol." The article also reveals the ongoing struggle between different schools of thought on how to reform these rules. Google advocates for a "24/7" approach, matching energy consumption with clean power from the same grid, while Amazon and Meta favor (and lobby for) a more "flexible" system. Critics warn that the latter approach could lead to "emissions gaming," undermining genuine efforts to reduce pollution. With the protocol under review, the stakes are high. The outcome will be fundamental to any chance of reaching our climate targets.

This is a 𝘧𝘢𝘴𝘤𝘪𝘯𝘢𝘵𝘪𝘯𝘨 read on how Meta, Google, Amazon, and Microsoft are staking out their positions in #CarbonAccounting, shaping how 𝘁𝗿𝗶𝗹𝗹𝗶𝗼𝗻𝘀 𝗼𝗳 𝗱𝗼𝗹𝗹𝗮𝗿𝘀 will be allocated to clean energy projects worldwide. 🌱💰 While I've always appreciated Google’s 𝟮𝟰/𝟳 𝗰𝗹𝗲𝗮𝗻 𝗲𝗻𝗲𝗿𝗴𝘆 𝗺𝗮𝘁𝗰𝗵𝗶𝗻𝗴, it's a high bar and may not be the most cost-effective way to achieve deep #decarbonization at scale, as Meta and Amazon seem to advocate. 🔎 However, I am skeptical of carbon accounting that lets #BigTech claim net-zero by buying 𝗱𝗶𝗿𝘁-𝗰𝗵𝗲𝗮𝗽 𝗼𝗳𝗳𝘀𝗲𝘁𝘀 in other regions, while their data centers create a fossil-fuel power plant renaissance at home. 💡 Ultimately, any carbon accounting scheme should have electricity 𝗱𝗲𝗺𝗮𝗻𝗱 𝗳𝗹𝗲𝘅𝗶𝗯𝗶𝗹𝗶𝘁𝘆 as a key consideration, especially for data centers. With widespread 𝗻𝗲𝗴𝗮𝘁𝗶𝘃𝗲 𝗽𝗿𝗶𝗰𝗲𝘀 𝗳𝗼𝗿 𝘀𝗼𝗹𝗮𝗿 𝗼𝘂𝘁𝗽𝘂𝘁 sending the wrong market signals, data centers can use their unprecedented power demand to bolster the #renewables market as opposed to driving incremental gas plant capacity (or extending the life of coal units expected to retire). This is the key influence that big tech can have on the energy landscape — 𝗹𝗲𝘁’𝘀 𝗵𝗼𝗽𝗲 𝗰𝗮𝗿𝗯𝗼𝗻 𝗮𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 𝗱𝗿𝗶𝘃𝗲𝘀 𝘁𝗵𝗲 𝗿𝗶𝗴𝗵𝘁 𝗱𝗲𝗰𝗶𝘀𝗶𝗼𝗻𝘀. Read the full story here: https://lnkd.in/gr-7HJ4A (apologies for the paywall - I was able to get the article on my phone browser, but not my desktop for some reason) #CleanEnergy #CarbonAccounting #BigTech #Sustainability #EnergyTransition #GreenFinance #DemandFlexibility #ClimateAction #EnergyPolicy

Big Tech means huge demand for electricity (and expect an even bigger demand with the AI hype). Voluntary Carbon markets should be a key part of the solution for #Tech #FANGS #NetZero Great article - Large technology groups are already “by far” the biggest corporate buyers of RECs - Surely part of the solution for Big Tech Microsoft Amazon Web Services (AWS) Google is Voluntary Carbon Markets Microsoft LSEG (London Stock Exchange Group) through your partnership you can scale now - David Schwimmer Scott Guthrie Martin Brand- I know there are many innovations in the pipeline this is a quick win delivering value across - partnership, market, challenge faced by the sector Innovate using VCM's and approaches like the Outcome Bonds recently taken to market with the Worldbank There is no greater problem better suited to help scale Voluntary Carbon Markets Glasgow Financial Alliance for Net Zero (GFANZ) Bill McDermott

Tech companies are trying to change the rules of CO2 emissions accounting to cover up their real carbon footprint, reports the Financial Times: " By its own account, Amazon is a green business leader. The world’s most visited online marketplace and leading cloud services provider says it hit its 100 per cent renewable energy goal seven years ahead of a self-imposed target. But by another, Amazon is a heavy polluter, emitting much more climate-warming greenhouse gases through its electricity usage than cloud computing rivals. In the US, Amazon’s vast home market, fossil fuels accounted for about 60 per cent of electricity generation in 2023. " Location-based accounting (real-world) vs market-based accounting (via carbon offsets) of CO2 emisions paints dramatically different pictures, as seen below. #ClimateChange #ESG #BigTech #CarbonAccounting

Regulated or un-regulated, shareholder sustainability expectations are driving creative carbon accounting, but does it stand the ‘sniff test’? Traceable and auditable data is increasingly important to building trust, credibility and delivering impactful change (rather than grand and arguably contradictory claims). Isn’t this why meaningful sustainability reporting matters? It’s ok not to have it all figured out (this stuff’s not easy!), but data transparency and genuine intent is a good start. How are you building on your sustainability reporting? HivePix #Sustainablesupplychains #innovation #productdata Amazon and Meta’s bid to rewrite the rules on net zero

Here is a great piece on the "creative accounting" that tech giants like Amazon, Apple and Microsoft are doing to greenwash their climate image, while quietly growing their emissions. With energy demand on the rise, it is clear that these companies need to be held accountable for relying on renewable energy credits instead of actually using renewable energy in their operations. If you want to learn more about the lengths that Microsoft goes to hide its reliance on RECs, and why that's a huge problem, you can read Stand.earth's report at https://lnkd.in/gEUYaxjT #climate #emissions #recs #esg #climatedata

🚨 Big Tech is trying to rewrite the rules on emissions reporting – and we would pay the price. 🚨 Amazon and Meta are pushing for changes that might let them hide the true scale of their emissions. While they claim to be "green leaders," their proposal would make it easier to cover up the real-world impact of their energy-hungry operations. 🌍 We can’t let them game the system! 🌍 It's time for transparency and accountability. Our future depends on real action, not corporate greenwashing. Let’s hold Big Tech to the highest standards and ensure they contribute to a sustainable future for all. https://lnkd.in/ecdNe3aG