Alphabet‘s GOOGL is steadily progressing towards attaining its zero-carbon objectives.
The tech giant’s division Google has collaborated with NV Energy, a utility company owned by Berkshire Hathaway, to power its Nevada-based data centers with geothermal electricity.
Google aims to escalate the infusion 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.
NV Energy has struck a purchase agreement with advanced geothermal developer Fervo Energy to execute this transformative deal.
Alphabet Inc. Price and Consensus
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Strides Towards Zero-Carbon Initiatives
Google, a pioneer in carbon neutrality since 2007, is resolutely marching towards achieving net-zero emissions across all its operations and value chain by 2030.
The company aims to slash 50% of its combined Scope 1, 2, and 3 absolute emissions by 2030.
GOOGL is set to invest in nature-based and technology-based carbon removal solutions to offset its remaining emissions.
Noteworthy is Google’s significant investments in wind and solar energies, with 64% of its global operations being powered by carbon-free energy, including wind and solar.
Transitioning to geothermal energy marks a pivotal shift as it relies on naturally occurring underground heat to generate renewable electricity, unlike solar and wind energy, contingent on sunshine and wind availability.
This strategic move from fossil fuels to clean energy is anticipated to bring cost benefits in both the short and long term.
Industry-wide Carbon Reduction Efforts
The technology sector is witnessing a surge in carbon-neutral endeavors.
Apart from Alphabet, companies like Amazon, Microsoft, and Lam Research are actively working to diminish their overall carbon footprints and substantially reduce energy expenses.
Amazon, known for its significant investments in renewable energy, is swiftly progressing towards powering its infrastructure entirely with renewable energy, with the 100% goal now anticipated to be met by 2025, earlier than the original 2030 projection.
Microsoft aims to achieve carbon negativity by 2030 and eradicate all green gas emissions by 2050.
Lam Research is steadfast in achieving carbon net-zero emissions by 2050 and operating entirely on renewable energy by 2030.
In a Nutshell
In today’s landscape, environmental, social, and governance factors hold paramount importance in establishing a sustainable business model. Investors worldwide now scrutinize not only a company’s profit-generating capacity but also its sustainability for the future.
In this context, Alphabet, boasting a Zacks Rank #1 (Strong Buy), stands well-positioned to attract investor confidence owing to its relentless efforts to reduce its carbon footprint.
Alphabet has delivered a robust 25.6% year-to-date performance, outshining the Zacks Computer & Technology sector’s 10.2% return.