News – full story
Obama has set a goal of reducing US greenhouse gas emissions by 26–28% by 2025
27/07/2015
US firms pledge US$140bn to cut carbon
The 13 companies include Apple, Coca-Cola, Google
Helen Tunnicliffe
AT an event at the White House in Washington DC later today, 13 of the largest companies in the US will announce US$140bn in low-carbon investments.
The 13 companies, along with secretary of state John Kerry, are launching the American Business Act on Climate Pledge. Each of the signatory companies – Alcoa, Apple, Bank of America, Berkshire Hathaway Energy, Cargill, Coca-Cola, General Motors, Goldman Sachs, Google, Microsoft, PepsiCo, UPS, and Walmart – will announce “significant” new plans to cut emissions, use more clean energy and take other actions to build sustainable businesses. The pledges made by the companies also include building more than 1,600 MW of renewable energy, reducing water use and pursuing zero net deforestation in their supply chains.
US president Barack Obama has set a goal of reducing US greenhouse gas emissions by 26–28% by 2025. Leadership to meet this target will be necessary in the public and private sectors, and the White House says that by signing the pledge, the companies involved not only demonstrate their commitment to climate action, but set an example for their peers. Many more companies are expected to sign the new pledge in a second round later in the year.
Under Obama’s climate action plan, almost 6bn t of carbon emissions will be cut by 2030. It is thought that the president is seeking to build support and momentum for climate action before world leaders meet in Paris in December to try to agree a legally-binding agreement on tackling climate change.
The 13 companies have already announced their intentions. For example, Alcoa will reduce its absolute greenhouse gas emissions by 50% by 2025 compared to 2005 levels, and will develop a range of innovations, including materials, products and technologies. Apple is already running all of its US facilities on 100% renewable energy, but will bring an extra 280 MW of clean energy online by the end of 2016. Bank of America has pledged extra financing for low-carbon activities, while Berkshire Hathaway Energy will invest an additional US$15bn in renewable energy on top of the US$15bn it has already spent.
Coca-Cola will cut the carbon footprint of its drinks by 25% by 2020. Google has committed to running all of its operations on 10% renewable energy and reducing water use, including a 30% reduction at its headquarters. PepsiCo will expand its sustainable farming initiative, ensure all of its point-of-sale refrigeration equipment is HFC-free by 2020, and increase the recycled content of its packaging. The full list is available on the White House website.
“We applaud the growing number of countries that have already set ambitious targets for climate action. In this context, we support the conclusion of a climate change agreement in Paris that takes a strong step forward toward a low-carbon, sustainable future,” the companies write in the pledge. “We recognise that delaying action on climate change will be costly in economic and human terms, while accelerating the transition to a low-carbon economy will produce multiple benefits with regard to sustainable economic growth, public health, resilience to natural disasters, and the health of the global environment.”
