Latest news with #Scope2
Newsweek
3 days ago
- Business
- Newsweek
Microsoft Reports Mixed Progress Toward Ambitious 2030 Carbon Negative Goal
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. In 2020, Microsoft set an ambitious climate goal to be carbon negative by 2030. Halfway into the decade, the company's latest sustainability report released Thursday shows the software giant has a long way to go to meet that goal but may be starting to bend its emissions curve downward. The report shows the company's total 2024 greenhouse gas output of 15,543,000 metric tons is still about 23 percent higher than its 2020 baseline of comparison. But Microsoft's total annual emissions in 2024 are slightly lower for the first time since the artificial intelligence boom brought a surge in data centers, computing power and energy consumption. The 2024 emissions are roughly 1.4 million metric tons lower than in 2023, and the lowest annual emissions the company has reported since 2021. Microsoft's climate goal to be carbon negative by 2030 means not only eliminating its total emissions but also supporting projects that draw carbon dioxide out of the atmosphere. "We're focused on the long-term goal of meeting our 2030 commitments," a Microsoft spokesperson told Newsweek via email. "The annual reporting process is an important check-in each year to see how we're doing, and it informs our decision-making as we keep working to meet those goals over the next five years." The Microsoft logo in San Francisco, California, May 13, 2025. The Microsoft logo in San Francisco, California, May 13, 2025. Smith Collection/Gado/Getty In a foreword to the report, Microsoft Corporation Vice Chair and President Brad Smith and Chief Sustainability Officer Melanie Nakagawa wrote that "our journey towards being carbon negative is a marathon, not a sprint." They noted that while emissions have been going in the wrong direction since Microsoft made its climate commitments in 2020, the increase has been "modest" compared to the company's revenue growth and far higher energy consumption over that period. Smith and Nakagawa wrote that the company remains "focused on sustained progress towards our 2030 goals." Cloud computing and the explosion of generative AI and large language models have greatly increased energy consumption by the tech sector. If the regional power grid that supplies a data center or tech campus burns fossil fuels to generate electricity, that drives up the company's emissions due to energy use, known as Scope 2 emissions. "We must also bring more carbon-free electricity onto the grids where we operate," Smith and Nakagawa wrote. According to the report, Microsoft used power purchase agreements to contract 19 gigawatts of new renewable energy in 2024 in 16 countries. Microsoft also sought other carbon-free energy sources, including an agreement last September with Constellation Energy that aims to restart an idle reactor at the Three Mile Island Nuclear Station in Pennsylvania. A Microsoft spokesperson said the company is "on track to achieve our 2025 target of procuring enough renewable energy to cover 100 percent of our energy consumption." Greenhouse gases that arise from the suppliers and the company's value chain, known as Scope 3 emissions, account for the bulk of Microsoft's CO2 output. According to the report, the company's Scope 3 emissions have grown 26 percent since 2020. Microsoft requires its large-scale suppliers to commit to a transition to 100 percent carbon-free electricity for the goods and services they deliver. The report detailed innovative solutions to reduce emissions from the construction and operation of data centers. Last week, Microsoft announced an agreement with a Massachusetts company called Sublime Systems, which has developed a low-carbon method for cement production. Traditional cement-making methods produce massive amounts of CO2, and the industry is a major global source of emissions. Microsoft's purchase agreement for more than 622,000 tons of low-carbon cement will help the new company ramp up its output. "Microsoft is stepping up as the first customer for our future megaton-scale plant, enabling us to more rapidly build and scale Sublime Cement as a global, enduring solution for clean construction." Sublime Systems CEO and Co-founder Leah Ellis said in a statement.
Muscat Daily
4 days ago
- Business
- Muscat Daily
Omantel advances Net Zero plan with emission cuts and renewables
Muscat – As climate action becomes increasingly urgent across industries, Omantel is stepping forward with a clear commitment to sustainability. The company has formally adopted a Net Zero target for 2050 and set an ambitious near-term goal to reduce Scope 1 and Scope 2 greenhouse gas emissions by 45% by 2030, using 2023 as the baseline year. This commitment reflects Omantel's broader sustainability vision and its role as a national digital enabler, supporting Oman's transition towards a low-carbon future. Rather than treating Net Zero as a distant aspiration, Omantel said it is taking measurable steps today to reshape its environmental impact. 'Our responsibility extends beyond digital infrastructure. It includes contributing to a more sustainable future for Oman. This target reflects both our ambition and the action we are taking to achieve it,' Lujaina Saif al Kharusi, Vice President of Governance, Regulatory Affairs and Compliance at Omantel, said in a press statement. A major step in this journey was reached in 2024, when Omantel redeemed 40,000 International Renewable Energy Certificates (I-RECs) sourced from the Dhofar Wind IPP through Nama Power and Water Procurement (Nama PWP). This clean electricity, equivalent to 40,000 MWh, led to a 12.38% reduction in the company's market-based Scope 2 emissions and prevented more than 88,000 tonnes of CO₂ equivalent from entering the atmosphere. Without intervention, emissions would have risen alongside business growth. Instead, Omantel achieved a 2.77% decrease in total emissions for 2024 compared to 2023, avoiding a projected 10.96% increase. By 2026, emissions are expected to remain just 5.15% above 2023 levels, significantly below the business-as-usual projection of nearly 31%. These results underscore the effectiveness of Omantel's approach. Omantel also ranks among the first telecom operators in the region to adopt renewable energy certificates at this scale. This signals both technical capability and a serious commitment to operational sustainability. 'Setting goals is important, but following through on them is what defines leadership,' said Lujaina. 'Integrating wind power into our energy portfolio is just one example of how we are aligning climate goals with real action.' By embedding sustainability into its strategy, Omantel is contributing to Oman's national Net Zero roadmap and helping shape a future where connectivity and climate responsibility advance hand in hand.
Business Times
09-05-2025
- Business
- Business Times
Common standards needed to boost trade in renewable energy certificates
[SINGAPORE] The lack of standards around the cross-border trade of renewable energy certificates (RECs) is a key barrier preventing companies from signing offtake agreements with low-carbon electricity producers around South-east Asia, said Low Xin Wei, assistant chief executive for the markets and systems division at the Energy Market Authority. This means that there is a lack of additional revenue for these electricity importers, with which the Singapore government is looking to ink electricity import contracts to meet its net-zero targets. He said that major international standards, such as the Greenhouse Gas Protocol, do not explicitly recognise the cross-border trade of RECs as a valid form of renewable energy procurement. The only exceptions are in the European Union and North America, where markets have been harmonised, said Low at a climate conference on Thursday (May 8). RECs are tradeable assets that are issued when 1 megawatt-hour of electricity is generated and delivered to the electricity grid from a renewable energy resource. Companies can purchase these certificates to reduce their Scope 2 emissions, which are emissions arising from their use of electricity generated from power stations. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up Given that Singapore has limited renewable energy resources, the amount of RECs that can be generated locally is constrained. There would only be a small pool of such certificates for companies to buy to offset their Scope 2 emissions. The Ministry of Trade and Industry previously announced that plans to establish a cross-border trading framework were under way. Low also said that there is a need to continue with concrete, small steps to make the Asean power grid a reality, starting with bilateral projects. 'Low-hanging fruits would be those which make use of existing interconnectors.' This includes the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project – a cross-border electricity trade that imports hydropower from Laos to Singapore – as well as the Energy Exchange Malaysia, a platform to facilitate cross-border electricity sales focused on renewable energy.
Business Times
08-05-2025
- Business
- Business Times
Lack of standards around cross-border renewable energy certificates trade prevents offtake agreements: EMA senior exec
[SINGAPORE] The lack of standards around the cross-border trade of renewable energy certificates (RECs) is a key barrier preventing companies from signing offtake agreements with low-carbon electricity producers around South-east Asia, said Low Xin Wei, assistant chief executive, markets and systems division, Energy Market Authority. This means that there is a lack of additional revenue for these electricity importers, which the Singapore government is looking to ink electricity import contracts with to meet its net-zero targets. He said that major international standards, such as the Greenhouse Gas Protocol, do not explicitly recognise the cross-border trade of RECs as a valid form of renewable energy procurement. The only exceptions are in the European Union and North America, where markets have been harmonised, said Low, who was speaking at a climate conference on Thursday (May 8). RECs are tradeable assets that are issued when 1 megawatt-hour of electricity is generated and delivered to the electricity grid from a renewable energy resource. Companies can purchase these certificates to reduce their Scope 2 emissions, which are emissions arising from their use of electricity generated from power stations. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up Given that Singapore has limited renewable energy resources, the amount of RECs that can be generated locally is constrained. There would only be a small pool of such certificates for companies to buy to offset their Scope 2 emissions. The Ministry of Trade and Industry previously announced that plans to establish a cross-border trading framework were under way. Low also said that there is a need to continue with concrete, small steps to make the Asean power grid a reality, starting with bilateral projects. 'Low-hanging fruits would be those which make use of existing interconnectors.' This includes the Lao-Thailand-Malaysia-Singapore Power Integration Project – a cross-border electricity trade that imports hydropower from Laos to Singapore – as well as the Energy Exchange Malaysia, a platform to facilitate cross-border electricity sales focused on renewable energy.
New Straits Times
06-05-2025
- Business
- New Straits Times
Malakoff unit issues RM250mil Asean Sustainability Sukuk
KUALA LUMPUR: Malakoff Corp Bhd's unit Malakoff Power Bhd (MPower) has issued its inaugural RM250 million Asean Sustainability SRI Sukuk Murabahah under its RM1.2 billion Islamic medium-term notes programme. This marks the group's first sustainability offering under its Asean Sustainability SRI Sukuk Murabahah and the first by an independent power producer in Malaysia. The proceeds from the issuance will be utilised to finance projects by MPower, Malakoff and its subsidiaries, in accordance with Malakoff's sustainable finance framework. Malakoff managing director and group chief executive officer Anwar Syahrin Abdul Ajib said this is a significant milestone for MPower, as the group's last sukuk issuance was in December 2013. "We are very encouraged by the strong demand from a diverse investor base for this issuance, which has set a new pricing benchmark for MPower. Looking ahead, Malakoff will continue to broaden its assets portfolio through strategic partnerships and circular economy initiatives. "As a trusted partner in Malaysia's green transition, we remain focused on strengthening capabilities, enhancing efficiencies and delivering long-term value in an evolving energy landscape," he said in a statement. The transaction was oversubscribed by 10.34 times, backed by growing demand for sustainability assets and the scarcity value of sukuk offerings. Malakoff said the price guidance was revised and tightened multiple times, supported by the strong orderbook. The issuance was priced at 70 basis points above the Malaysian Government Securities yield for both the seven- and 10-year tenures, which is 0.30 percentage point lower than the upper end of the initial pricing guidance. Over the past year, Malakoff achieved a 3.7 per cent year-on-year reduction in greenhouse gas emissions intensity, partly supported by a 17 per cent drop in Scope 2 emissions related to the group's electricity consumption. Its other notable sustainability commitments include its flagship Biomass Co-firing Project at the 2,100 megawatt Tanjung Bin Power Plant for a trial run under the National Energy Transformation Roadmap. Malakoff is committed to scale up the biomass co-firing to a higher ratio of 15 per cent by 2027. This is projected to reduce carbon dioxide emissions by approximately 755,000 tonnes annually.
