Carbon news roundup for September 2024

Sustainability

Last updated: 18. Oct 2024

Net-zero progress is mixed, data center emissions are greatly underreported, and climate data from 10,000 companies will soon be publicly accessible

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Dr. Alexander Schmidt

Head of Science, Sustainability, and Climate Research

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Headshot-of-Jessica-Feng

Jessica Feng

Research Assistant

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Evan Farbstein

Content Writer

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Table of Contents

Our monthly carbon news roundup summarizes the latest updates in sustainability legislation, net-zero news, and decarbonization success stories – and explains what they mean for your business.


Net Zero Stocktake 2024 reveals progress and challenges in global decarbonization efforts

The Net Zero Stocktake 2024, an annual assessment of net-zero progress among 14 major-emitting countries, has been released. This year’s assessment highlights both advancements – and enduring challenges – in global efforts to combat climate change. It also underscores the urgency of reaching net zero carbon dioxide emissions by the early 2050s to limit global temperature increase to 1.5°C.

Since 2023, there has been a notable increase in net zero target-setting across various sectors: states and regions saw a 28% increase, cities an 8% increase, and companies a 23% increase. However, the report also reveals significant gaps in commitment and action. Over 40% of non-state entities still lack emission reduction targets, and only 5% or fewer meet minimum procedural and substantive integrity criteria for their targets.

The Stocktake emphasizes the critical need for swift and sustained action to transform net-zero targets into credible implementation plans. It calls for improved coordination between national and subnational governments and more robust targets to drive meaningful progress towards deep decarbonization. The private sector, especially, continues to fall short in accurate target setting and developing effective reduction strategies.

What does this mean for my business?

It’s increasingly important for your business to set, and work toward, credible net-zero targets for businesses. With increased scrutiny on corporate climate action, your company should prioritize developing robust, science-based emission reduction targets and detailed implementation plans.

How to set and reduce emissions: a three-step plan

Drawing from deep expertise and extensive experience, Normative’s experts share a practical plan for creating and working toward climate targets.

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Data center emissions are likely 662% higher than tech companies have claimed

An analysis from The Guardian has revealed that big tech companies are significantly underreporting emissions from their data centers, with actual emissions potentially 662% higher than officially reported figures. 

This discrepancy is largely attributed to the widespread use of renewable energy certificates (RECs), which may not accurately reflect true emissions reductions. The situation is further complicated by the rapid rise of artificial intelligence (AI), which is driving unprecedented increases in energy demands for data centers. Already highly energy-intensive, data center power consumption is projected to double by 2030, exacerbating concerns about the tech industry’s environmental impact.

Compounding the issue is the frequent underestimation or miscategorization of scope 3 emissions, which include those from third-party data centers and hardware manufacturing. This leads to significant uncertainty in overall emissions accounting and challenges efforts to achieve genuine carbon neutrality in the tech sector.

What does this mean for my business?

Your company should scrutinize claims of “carbon neutrality” from tech partners and service providers, particularly those relying heavily on RECs. It’s crucial to develop a comprehensive understanding of your full value chain emissions, including the scope 3 emissions from data centers and AI operations, to accurately assess and mitigate your climate impact.

Calculate your full scope 3 emissions using a science-backed methodology

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Climate data from 10,000 companies will soon be public thanks to CDP and NZDPU collaboration

CDP and the Net-Zero Data Public Utility (NZDPU) have announced an expansion of their partnership, aimed at making core climate data from over 10,000 companies publicly accessible. This collaboration will cover more than 50% of the global market cap, marking a significant step towards transparency in corporate climate action.

The initiative supports the goals of the Paris Agreement by providing open access to essential climate information for the public good. This includes critical data such as greenhouse gas (GHG) emissions and emissions reduction targets, enabling better tracking and accountability of corporate climate efforts.

By streamlining climate data reporting and improving global access to consistent and comparable corporate climate data, this partnership aims to avoid duplication of efforts and enhance the overall quality of climate-related information available to stakeholders.

What does this mean for my business?

Your company should prepare for increased scrutiny of its climate data as public accessibility grows. Consider how to improve your data collection and reporting processes to ensure accuracy and comparability in line with this new standard of transparency.


That’s it for September 2024! Stay tuned for next month’s roundup.