Alphabet‘s GOOGL is making significant strides towards its zero-carbon ambitions. Recent reports indicate that the tech giant’s division, Google, has teamed up with NV Energy, a utility company under Berkshire Hathaway’s umbrella, to supply its Nevada-based data centers with geothermal electricity. This move is part of Google’s strategy to enhance the amount of carbon-free geothermal electricity channeled into the local power grid for its operations over the next half-decade.

Making Strides Towards Zero-Carbon Efforts

Google has maintained its status as carbon-neutral since 2007 and is now aiming to achieve net-zero emissions throughout its operations and value chain by 2030. The company has set a target to reduce 50% of its combined Scope 1, 2, and 3 absolute emissions before the end of this decade. To accomplish this, GOOGL plans to invest in nature-based and technology-based carbon removal solutions. Notably, Google’s transition to geothermal energy marks a progressive shift from traditional fossil fuels, offering a renewable source that is not dependent on intermittent factors like sunshine and wind. This strategic move is expected to not only bolster sustainability efforts but also drive cost efficiencies in the short and long term.

Tech Sector’s Zero-Carbon Movement

The tech industry is witnessing a surge in zero-carbon initiatives, with companies like Amazon, Microsoft, and Lam Research also taking significant steps to reduce their carbon footprints and trim energy expenses. Amazon, in particular, has emerged as a frontrunner in renewable energy investments, with the target of powering its infrastructure entirely with renewable sources by 2025, five years ahead of the initial goal of 2030. Microsoft is on track to become carbon-negative by 2030 and aims to eliminate all green gas emissions by 2050. Similarly, Lam Research is committed to achieving carbon net-zero emissions by 2050 and transitioning to 100% renewable energy by 2030.

Looking Ahead

In today’s business landscape, environmental, social, and governance considerations are pivotal for ensuring sustainable growth. Investors globally are not just focused on profitability but also scrutinize a company’s sustainability practices for long-term viability. Alphabet, boasting a Zacks Rank #1 (Strong Buy), stands poised to attract investor confidence with its robust efforts to minimize its carbon footprint. The company’s stock has surged 25.6% year-to-date, outperforming the Zacks Computer & Technology sector’s return of 10.2%, signaling positive momentum in the market.

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