Companies need to stop taking the easy way out on climate goals
Tech giants Amazon and Google both recently released news about their efforts to clean up their climate impact. Both were a mixed bag, but one bit of news in particular made me prick up my ears. Google’s emissions have gone up, and the company stopped claiming to be “net zero” (we’ll dig into this term more in a moment). Sounds bad, right? But in fact, one might argue that Google’s apparent backslide might actually represent progress for climate action.
My colleague James Temple dug into this news, along with the recent Amazon announcement, for a story this week. Let’s take a sneak peek at what he found and untangle why corporate climate efforts can be so tricky to wrap your head around.
To make sense of these recent announcements, the most important phrase to understand is “net-zero emissions.”
Companies produce greenhouse-gas emissions by making products, transporting them around, or just using electricity. Some corporate leaders may want to reduce those emissions so they can be a smaller part of the climate-change problem (or brag about their progress). Net-zero emissions refers to the point at which the emissions a company produces are canceled out by those it eliminates. But very different paths can all lead to that point.
One way to get rid of emissions is to take actions to reduce them in your operations. Imagine, for example, Amazon replacing its delivery trucks with EVs or building solar panels on warehouses.
This sort of direct action tends to be hard and expensive, and it’s probably impossible for any company to totally wipe out all its emissions right now, given that so much of our economy still relies on fossil fuels. So to reach net zero, many companies choose to disappear their emissions with math instead.
A company might buy carbon credits or renewable-energy credits, essentially paying someone to make up for its own climate impact. That might mean giving a nonprofit money to plant some trees, which suck up and store carbon, or funneling funds to developers and claiming that more renewables projects will get built as a result.
Not all credits are all bad—but often, carbon offsets and renewable-energy credits reflect big claims with little to back them up. And if companies are going after a net-zero label for their business, they may be incentivized to buy cheap credits, even if they don’t actually deliver on claims.
