US Media Exposes How Tech Companies Hide the Real Carbon Footprint of AI

Home AI News US Media Exposes How Tech Companies Hide the Real Carbon Footprint of AI

Updated on November 12 2024

Amazon, Microsoft, and Meta have been concealing their true carbon footprints by purchasing credits linked to their electricity consumption, inaccurately erasing millions of tons of greenhouse gas emissions from their carbon accounts. These companies acquire credits known as unbundled Renewable Energy Certificates (RECs), which allow them to represent electricity consumed from coal-fired power plants as if it came from solar energy sources. Each year, while voluntarily disclosing information to the Carbon Disclosure Project (CDP), Amazon, Microsoft, and Meta rely on millions of unbundled RECs to claim emissions reductions. Current carbon accounting standards permit the use of these credits to assess a company's carbon footprint. However, research by numerous scholars indicates that accounting standards need to be updated to accurately reflect greenhouse gas emissions.

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