Unilever Plans Net Zero Emissions by 2039

June 16, 2020 Maisie Law
As of yesterday, Unilever has set out new actions to fight climate change, aiming to “bring the planet back to health” by protecting and regenerating nature and preserving resources for future generations in the wake of the new Unilever Compass initiative.
Sustainability has long been at the forefront of Unilever’s business initiatives, with the company remaining acutely aware of the scale and urgency of the climate crisis. However, a new press release has further deepened this commitment, with Unilever now suggesting it “will achieve Net Zero emissions from all our products by 2039.”

Alongside this net-zero goal, the company have also pledged to “empower, and work with, a new generation of farmers and smallholders, driving programmes to protect and restore forests, soil and biodiversity; and we will work with governments and other organisations to improve access to water for communities in water-stressed areas.”

In the mindset of accelerating action, Unilever’s brands will collectively invest €1 billion in a new dedicated Climate & Nature Fund. In addition to their present climate focussed initiatives, this funding will be used over the next ten years to further decisive action, with projects likely to include landscape restoration, reforestation, carbon sequestration, wildlife protection and water preservation.

“While the world is dealing with the devastating effects of the Covid-19 pandemic, and grappling with serious issues of inequality, we can’t let ourselves forget that the climate crisis is still a threat to all of us. Climate change, nature degradation, biodiversity decline, water scarcity – all these issues are interconnected, and we must address them all simultaneously. In doing so, we must also recognise that the climate crisis is not only an environmental emergency; it also has a terrible impact on lives and livelihoods. We, therefore, have a responsibility to help tackle the crisis: as a business, and through direct action by our brands.”

Alan Jope, Unilever CEO, explains.
Science-based targets
Currently, Unilever focusses on science-based targets, which include: to have no carbon emissions from our own operations, and to halve the GHG footprint of our products across the value chain, by 2030. However, as an aspect of their new actions, as of yesterday they are committing to zero emissions from all products by 2039 – from the sourcing of the materials we use, up to the point of sale of our products in the store.

Intending to do so 11 years ahead of the 2050 Paris Agreement deadline, Unilever incites a unified spirit working with partners towards science-based targets. Additionally, pressing the importance of transparency as an incentive to accelerate the race, Unilever intends to set up a system to communicate the carbon impact of every product they sell.

“The race to zero must be a collective effort, and business alone cannot drive the transition at the speed that is required. We call on all governments to set ambitious net-zero targets, as well as short term emissions reduction targets, supported with enabling policy frameworks such as carbon pricing,” the press release reads.

Sustainable sourcing for nature
Despite leading sustainable sourcing for over a decade, with 89% of their forest-related commodities certified as sustainably sourced, Unilever is challenging themselves to even higher standards. They aim to:

Achieve a deforestation-free supply chain by 2023, by increasing traceability and transparency by using emerging digital technologies accelerating smallholder inclusion and changing our approach to derivates sourcing.

Regenerating nature: increasing local biodiversity, restoring soil health, and preserving water conservation and access, by empowering a new generation of farmers and smallholders who are committed to protecting and regenerating their farm environment.

Introducing a pioneering Regenerative Agriculture Code for all our suppliers. It will build on our existing Sustainable Agriculture Code and will include details on farming practices that help rebuild critical resources.

Set up direct efforts to preserve water, by implementing water stewardship programmes for local communities in 100 locations by 2030.

Join the 2030 Water Resources Group, a multi-stakeholder platform hosted by the World Bank, to contribute to transformative change and building resilience in water management in key water-stressed markets, such as India, Brazil, South Africa, Vietnam and Indonesia.

Finally, Unilever aims to make our product formulations biodegradable by 2030, to minimise their impact on water and the aquatic ecosystems.

“Our collective responsibility in tackling the climate crisis is to drive an absolute reduction of greenhouse gas emissions, not simply focus on offsetting – and we have the scale and determination to make it happen. But this is not enough. If we want to have a healthy planet long into the future, we must also look after nature: forests, soil biodiversity and water ecosystems.”

Marc Engel, Unilever Chief Supply Chain Officer, explains.
“The planet is in crisis, and we must take decisive action to stop the damage, and to restore its health…While it’s critical to address the impact that our products have at the end of their life, it’s just as important to continue to look at the impact they have on the planet at the start of their life – in the sourcing of materials – as well as in their manufacture and transport. We will reduce the impact that our products and our operations have on the environment, and we will do our part to bring the planet back to health.”

“Build back better”: Business for Nature’s Plea to Reverse Nature Loss

Business for Nature held their major global leadership event urging people to join their ‘Call to Action’ in reversing nature loss and building back better from the effects of COVID-19.
The first major global leadership event to discuss reversing nature loss was held on Monday 15th June 2020, hosted by Paul Polman, co-founder of IMAGINE, and Tian Wei, World Economic Forum Young Global Leader and news anchor. Held by Business for Nature, the event was a ‘Call to Action’ to reverse nature loss, telling all in attendance that “nature is everyone’s business”.

Through inspiring and insightful speakers, the event showed how integrating business and sustainability will encourage economic growth, whilst reversing the impact of nature loss. The event encouraged companies and experts alike to “build back better” from the effects of COVID-19. The speakers urged everyone to learn from their mistakes highlighted by the coronavirus crisis, whilst making this decade the ‘decade of action’.

As cited in the UN’s Sustainable Development Goals, this next decade is the ‘decade of action’ in terms of tackling climate change. Business for Nature’s event echoes this goal and through the use of a collective voice and action aims to grab the attention of governments to implement policies to tackle nature loss. Host Paul Polman’s inspiring speech showed the importance of nature in policymaking, saying: “we need to get nature-based solutions higher on the agenda. We need to give it more priority than it gets today”.

Business for Nature’s passionate event answered two fundamental questions; what must we learn from COVID-19 to build back better and how are businesses showing leadership on nature? The answers to these questions emphasized the gravity of nature in business, inspiring others to implement nature-focused goals in their own companies.

Building back better from COVID-19
Starting with key talks from experts, the event reflected on the current health crisis and lessons learnt that should be applied in the context of the planetary crisis of climate change and the loss of nature. Each expert answered the question; what must we learn from COVID-19 to build back better?

One key theme which ran through many of the talks in the event is the importance of connectedness and togetherness in terms of building back better from the effects of the coronavirus pandemic. Dr Ngozi Okonjo-Iweala, Co-Chair of the Global Commission for the Economy and Climate and Special Envoy to Mobilize International Economic Support for Continental Fight Against COVID-19, said in her speech:

“As we build back better we must solve these problems together. That is a big lesson. All of us, whether we are government, business or private sector, civil society we have to solve them together.”

Okonjo-Iweala’s address to those attending urged people to understand the interconnectivity of natural resources, and showed how “we cannot solve the problems of the world in an isolated fashion”. Reinforcing the idea of connectedness, Okonjo-Iweala’s inspiring voice emphasized the importance of coming together to “build back better”.

Similarly, the Executive Secretary of the UN Framework Convention on Climate Change, Patricia Espinosa stated: “the overwhelming lesson from COVID-19 is that we must build a cleaner, safer, healthier, more sustainable, more resilient and more climate-friendly future” and hopes “we have the will of all people to overcome this crisis”.

Espinosa’s speech, like Okonjo-Iweala’s, expressed the need for collective action, something which was passionately discussed by many of the experts who spoke at the event.

Not only did the event push the importance of connectedness and a collective voice, Joaquim Levy, Fellow of Steyer Taylor Institute at Stanford University and Former Minister of Finance of Brazil, also highlighted the need for the private sector to integrate nature into all its decision making to “build back better” from the effects of COVID-19.

Levy stated: “investors are increasingly saying that it is all about understanding the facts that these changes will have on business,” encouraging business owners to invest in nature as part of a green recovery.

PepsiCo: “we are committed to help build a better future”

Global multinational food, snack, and beverage corporation, PepsiCo, has just released its 2019 Sustainability Report highlighting its progress towards sustainability goals.
PepsiCo’s product portfolio includes a wide range of brands such as Walkers/Lays, Gatorade, Pepsi-Cola, Quaker and Tropicana.

The report shares progress across all of the priority areas PepsiCo believes it can have the most impact on: Agriculture, Water, Climate, Packaging, Products, and People.

The corporation plans to reduce their emission across its value chain. In 2019, PepsiCo reduced its absolute Green House Gas (GHG) emissions by 6%, making significant progress of reducing GHG emissions by 20% before 2030.

Its plan is to play a key role in Europe by achieving climate neutrality by 2050, and is actively engaging in discussions surrounding what measures must be taken to achieve this goal alongside supporting the European Commission’s Green Deal.

“Today’s global environmental and societal pressures are bringing into sharp focus the need for systemic change,” said Ramon Laguarta, PepsiCo’s CEO and Chairman. “As a global food and beverage leader, we have a responsibility to use our scale and influence to help tackle long-term challenges.”

Laguarta explained that, although PepsiCo is making significant progress in solving these challenges, he “knows it will take even more… we are committed to help build a better future for our people and the planet.”

PepsiCo affirmed its plans to accelerate action on climate change by signing the United Nation’s (UN’s) Business Ambition for 1.5°C pledge in April 2020, becoming a part of its long-term strategy for achieving net-zero emissions by 2050.

In 2019 the company worked with over 1500 farmers in Europe to reduce its environmental impact by increasing efficiencies and growing more with fewer resources. New innovations such as PepsiCo’s Precisions Agriculture Technology and the Cool Farm Tool enable farmers to quantify on-farm GHG emissions.

The company continues to work on the technology it co-developed with Cambridge University, UK, allowing farmers to use the latest mobile and web-based capabilities to monitor over 48,000 hectares of potato production.

The crop monitoring system in Europe has been used to track potato varieties and seed supply over the past number of years. The benefits from this program became evident in the 2019 harvesting season, as the company was able to work more closely with local farmers to extend the harvest timeframe and avoid crop loss.

In 2019, PepsiCo achieved 100% renewable electricity in nine European markets – Spain, Belgium, Portugal, Italy, the United Kingdom, the Netherlands, Germany, Greece, and Poland. This includes on-site solar energy installations and a newly added windmill which will generate approximately 40% of the total site electricity consumption, saving around 4232 tonnes of CO2.

PepsiCo is working to create a circular economy to ensure less of its packaging becomes waste, therefore reducing the carbon intensity of its packaging. PepsiCo’s sustainable plastics vision is based on three interconnected strategies: reducing the amount of plastic it uses, recycling more plastic, and reinventing the plastic packaging it uses.

In 2019, it trialled a process called ‘charge compaction’ which causes snacks to settle to the bottom of the bag during packaging, in turn reducing the amount of packaging used. It is also working to increase the amount of PET used in plastic bottles, with a goal of 50% recycled PET to be included in bottles across the EU by 2030.

“As we look to the decade ahead, global efforts to mitigate climate change and support a more sustainable and inclusive future are more crucial than ever,” said Simon Lowden, PepsiCo’s Chief Sustainability Officer. “It will require agility, collective action, and collaboration. We know building a more resilient food system is possible, and we’ll continue working with partners around the world to catalyse change for a better tomorrow.”

The Chancery Lane Project: “Change the Precedent, Change the World”

The Chancery Lane Project has released the second edition of ‘The Climate Contract Playbook’ which is set to progress climate action by creating the legal conditions to achieve net zero.
Since its establishment in July 2019, The Chancery Lane Project has unified 400 solicitors, barristers and academics from 115 different organisations who are collaborating to rewire laws and contracts to help lawyers around the world fight climate change. This ground-breaking alliance of lawyers working pro bono aims to create the legal conditions needed to achieve net-zero carbon emissions.

Having already released four publications, including The Climate Contract Playbook, Green Papers of Model Laws (released in February), the release of The Climate Contract Playbook Second Edition and a Glossary of climate related definitions yesterday marks a key next step in their operations. Prioritising the importance of creating a cleaner future for the next generation, each clause has been named after a child, adding a personal, and indeed poignant, aspect to these new guidelines.

Taking the time to make a difference
Recognising the unique position lawyers are in to write contracts and laws that influence decisions made by individuals and businesses, The Chancery Lane Project is utilising this to provide innovative solutions to the climate crisis. Lawyers have donated a staggering 5,000 plus hours in developing these clauses, and continue to do so in this week’s virtual “hackathon” as part of London Climate Action Week.

Becky Clissmann, Senior Editor in the Practical Law Environment team at Thomson Reuters and a member of The Chancery Lane Project Year Steering Committee said:

Since TCLP’s inception last year, there has been a huge upsurge of interest in climate conscious drafting. TCLP’s online community has responded by drafting a further 13 new precedents and 23 climate definitions. The legal community is realising that the power to tackle climate change is in our hands and lawyers across a range of sectors are taking action by using TCLP precedents to address climate risks in their agreements.”

Drafted to shift legal norms towards climate conscious drafting, the second edition of the Playbook adds to the 16 precedent clauses from the first Playbook. These include:

climate purposed non-disclosure terms;
a green Shareholders Agreement;
climate and net zero purposed Due Diligence questions; and
clauses covering risk sharing, banking and finance, equity, employment, construction, land and real estate.
The glossary provides climate definitions to accelerate drafting, including carbon budget, carbon offsetting, carbon insetting, carbon neutral, carbon negative, carbon reporting, GHGs, Science-Based Targets and an ideas pipeline of 27 additional definitions to be drafted.

Marking the beginning
Ellie Mulholland, Director of the Commonwealth Climate and Law Initiative and member of The Chancery Lane Project Year Steering Committee said:

I’ve heard it said that lawyers can save the world. I wouldn’t go that far. But I am absolutely certain that we will not prevent catastrophic climate change without lawyers taking a lead role in their day-to-day practice and working collaboratively on practical solutions like the TCLP’s climate contract Playbooks.”

The first editions have been downloaded over 12,000 times and this is just the beginning. The Chancery Lane Project aims to inspire lawyers in their drafting, and hopes it will encourage them to champion the clauses and amplify their impact with colleagues and clients to integrate them within their daily practice.

As their press release states, “This is key to accelerating the transition to Net Zero. The clock is ticking on climate change. There is much left to do, but if the legal community redoubles its efforts to work together in an aligned way, we can achieve anything.”

Matthew Gingell, General Counsel at Oxygen House Group and chair of The Chancery Lane Project steering group said:

“2020, has, understandably, not been the year of clarity and action on climate change that we all hoped and the path for the next generation seems less clear than ever. But history reminds us that with shared purpose and working together we can navigate uncertainty, whatever its nature. As such I am positive that the legal profession can and will help mitigate climate change through collaborative drafting. To put it simply if we Change the Precedent, we can Change the World.”

Making a change
The Intergovernmental Panel on Climate Change announced last year that we have 11 years to halt the progress of the climate crisis before it is too late. The project aims to inspire, governments, companies across all sectors and industries, and individuals to challenge the status quo and facilitate a transition to a net zero way of living.

These publications are the start of our journey. We urge all lawyers to amplify the impact of The Chancery Lane Project by using these clauses where they meet the needs of the situation and the goals of their clients and communities.”

stated a press release from the project
The Playbook is free to download here. For more information please see here. If you are a lawyer seeking to volunteer your time, please visit our website or contact [email protected].

The BEUC call for more sustainable transport in Europe

A new document has been released by The European Consumer Organisation outlining how the EU can ‘break out’ of fossil-fuelled mobility and introduce more sustainable transport in Europe; another indicator of how Europe is dedicated to making a sustainable change to the transport industry.
The European Consumer Organisation (BEUC) has released a document explaining how consumer policy can help clean up transport. The BEUC represents 44 independent consumer organisations from 32 countries. Founded in 1962, their main role is to represent these organisations to the EU institutions and defend the interests of the European consumers.

First and foremost, the BEUC makes sure the EU takes policy decisions that improve the lives of consumers. This covers a range of topics, energy, consumer rights, redress and enforcement, health and sustainability, to name a few.

Aiming to make consumers confident in the European Single Market, the BEUC “Strive for protection and choice as drivers of consumer markets”.

Although consumer policy has addressed many challenges over the decades, new challenges have arisen in recent years that the BEUC aim to target. Challenges such as climate change, medicines becoming less available and affordable, and the rise of artificial intelligence.

To address these challenges, the BEUC want well thought out EU policies to address the challenges and improve the quality of life for current and future generations.

Hoping for change to the transport sector in Europe, the BEUC has produced their document, “Breaking out of fossil-fuelled mobility: How consumer policy can help clean up transport”.

Why sustainability matters to the consumer
The document explains how consumers would be willing to change their transport habits, but there are no policies in place to make this feasible. They are calling for profound changes to the mobility industry by accelerating the shift to electric cars and making public transport more attractive. Not only this, but they also want walking and cycling to be more appealing.

Providing the view of consumer groups, the paper outlines how policymakers can give more consumers access to sustainable modes of transportation.

Laurens Rutten, a representative from the BEUC, spoke to CleanTech News about the importance of addressing the climate crisis by transforming the transport industry. Rutten stated:

The climate crisis must be tackled with the utmost urgency. And with transport emissions driving this crisis, we need to rethink our daily mobility. What’s difficult is that we are locked into a system that is dominated by fossil fuels.

This is not only bad for the climate – it is also bad for our wallets and the overall quality of our lives. Changing this system requires action by decision-makers on many fronts. We urge the EU and its member states to accelerate the shift to electric cars, to make walking and cycling more convenient and to improve the attractiveness of rail travel.

Decarbonisation and accessibility
To change our mobility system, the document sets out a wide range of measures that should be adopted involving different stakeholders.

Decarbonising transport is a key part of the document. The BEUC feel that consumers need access to more zero and low-emission transport options. This would be possible through by accelerating the transition to electric cars.

The BEUC has outlined the policies needed to help decarbonise transport:

The EU must increase the level of ambition of the 2025 and 2030 CO2 emission reduction targets for cars.
They need to introduce a long-term phase-out date for the sales of petrol and diesel cars.
There should be a denser and convenient network of charging stations for electric cars to make them more accessible.
The use of alternative fuels, such as advanced biofuels and e-fuels, should be reserved for aviation and shipping as they are the most difficult to decarbonise.
Important in making sustainable transport options more accessible, is making them more affordable. According to the BEUC’s document, current transport prices don’t reflect the impact our mobility choices have on the environment.

Suggesting the importance of price signals, positive and negative, the BEUC believe the signals will ensure sustainable transport will be more attractive and affordable. Furthermore, they want an increase in purchase incentives to accelerate the switch to e-mobility.

Positive price signals, the BEUC outlined, should act as a reward for more sustainable behaviour such as car-sharing or the use of public transport.

Making changes for the better
Calling for public transport and rail travel to be much more attractive to the consumer, the BEUC wants an increase in investment for public transport. Furthermore, they want the EU to improve the quality of public transport and improve its service for the consumers’ convenience. By strengthening passenger rights and making single ticketing the norm, public transport will be more attractive to people.

The BEUC believes transport operators need to cooperate with each other. If there was an obligation to share data about their tariffs and real-time timetables to provide innovative services, this will make public transport more convenient.

By rethinking urban design to give more space to walking and cycling the BEUC hopes this will encourage ‘active’ mobility. They want new policies in place where the EU will be able to give more space to pedestrians and cycling that’s safe.

Finally, the BEUC wants the EU to encourage new mobility services that serve sustainability objectives. Transport options such as car-sharing, e-bikes or e-scooters provide alternatives to private car ownership.

The BEUC urge public authorities must impose some rules to make sure these mobility alternatives don’t run solely based on profit. Rather, they want these alternatives to also serve broader sustainability urban mobility objectives.

Europe’s dedication to sustainability
Recognising the importance of rebuilding sustainably from the impact of COVID-19 and tackling climate change, the BEUC want policies to be introduced that will aid everyone.

Speaking to CleanTech News, Rutten told us of how they want the adoption of inclusive policies, stating:

“It is very important to be conscious of the needs of different people. Some people may live in a rural area that is not served, or unlikely to be, by trains or other forms of public transport. For them, it might make more sense to switch to electric cars. Urban residents may rather wish to move from their individual cars to cycling.

Here we see the value of adapting the way we plan our cities. Whatever the changes made, they must always be socially equitable. We want to avoid policies that simply drive up the prices for people, without providing solutions, as that could especially end up hurting those on lower incomes”.

This is not the first example of Europe’s dedication to make sufficient, sustainable change post-COVID-19. With pledges to clean up public transport and ‘clean fuels for all’ already in place, Europe is committed to making a change for the better.

“Climate action can be the foundation for a new era of innovative potential,” says Tim Cook as Apple announces its commitment to carbon neutrality by 2030

Apple announced its commitment to be 100% carbon neutral for products and supply chain by 2030 early last week. This announcement brings net zero plans 20 years ahead of schedule based on IPCC targets.
The plans for carbon neutrality will span the entire business, from manufacturing, supply chain and product life cycle, meaning every Apple device sold will have no environmental impact as of 2030.

“Businesses have a profound opportunity to help build a more sustainable future, one born of our common concern for the planet we share,” said Tim Cook, Apple’s CEO.

The innovations powering our environmental journey are not only good for the planet — they’ve helped us make our products more energy efficient and bring new sources of clean energy online around the world. Climate action can be the foundation for a new era of innovative potential, job creation, and durable economic growth. With our commitment to carbon neutrality, we hope to be a ripple in the pond that creates a much larger change.”

An inspiration for other companies
With the intention to provide details of its carbon neutrality plan, Apple will be supporting other companies in the industry on its path towards sustainable operations.

Apple’s 2020 Environmental Progress Report that was also released last week, details an intended 75 percent emissions reduction by 2030, in addition to the development of innovative carbon removal solutions for the remaining 25 percent of its footprint.

Not only this, but to support efforts further, the tech giant is establishing “an Impact Accelerator that will focus on investing in minority-owned businesses that drive positive outcomes in its supply chain and in communities that are disproportionately affected by environmental hazards”. According to the press release, this is part of Apple’s $100 million Racial Equity and Justice Initiative.

“We’re proud of our environmental journey and the ambitious roadmap we have set for the future,” said Lisa Jackson, Apple’s vice president of Environment, Policy and Social Initiatives.

Systemic racism and climate change are not separate issues, and they will not abide separate solutions. We have a generational opportunity to help build a greener and more just economy, one where we develop whole new industries in the pursuit of giving the next generation a planet worth calling home.”

Apple’s Climate Roadmap
The company’s 10-year plan plans to lower emissions by introducing:

Low carbon product design:
Apple will continue to increase the use of low carbon and recycled materials in its products, innovate in product recycling, and design products to be as energy efficient as possible. This will include:

Recycling innovation using a disassembly robot named “Dave” which recovers key materials;
The company’s Material Recovery Lab in Austin, Texas, which is now partnering with Carnegie Mellon University, will develop further engineering solutions;
All iPhone, iPad, Mac, and Apple Watch devices released in the past year are made with recycled content.
Expanding energy efficiency:
Apple will identify new ways to lower energy use at its corporate facilities and help its supply chain make the same transition.

Apple will partner with the US-China Green Fund investing $100m in energy efficiency projects for its suppliers;
Continue its Supplier Energy Efficiency Program;
Maintain commitments such as the energy efficiency upgrades Apple invested in last year which lowered electricity needs by one-fifth.
Renewable energy:
Apple will remain at 100 percent renewable energy for its operations — focusing on creating new projects and moving its entire supply chain to clean power.

This will be done through commitments from over 70 suppliers to use 100 percent renewable energy for Apple production;
Apple creates over 1GW of renewables a year meaning 80 percent of its renewable energy use is from its own projects;
The company is also set to launch one of the largest solar arrays in Scandinavia.
Process and material innovations:
Apple will tackle emissions through technological improvements to processes and materials needed for its products.

Carbon removal:
Apple is investing in forests and other nature-based solutions around the world to remove carbon from the atmosphere.

Last week Apple announced its carbon solutions fund to invest in the restoration and protection of forests and natural ecosystems globally;
Alongside Conservation International, the company will invest in new projects, building on learnings from existing work like restoring degraded savannas in Kenya and a vital mangrove ecosystem in Colombia.

Alphabet’s commitment to environmental and social initiatives as $5.75bn issued in sustainability bonds

This week, Google’s parent company, Alphabet, has issued new sustainability bonds to further its support for environmental and social initiatives. The bonds will support a range of environmental steps, including clean energy, circular economy design and green buildings.
The post, released by Google earlier this week, from Alphabet and Google’s CFO, Ruth Porat, detailed the corporation’s intention to maintain environmental and social responsibility at the core of operations; a core value since its founding in 1998.

Noting that Google has been carbon neutral since 2007, Porat suggests, “we’ve matched our entire electricity consumption with renewables for the past three years. We continue to make major investments in affordable housing and have made a number of significant commitments to promote racial equity”.

The latest step
However, the latest step in the company’s commitment to the environment and social responsibility is the largest sustainability bond by any company in history. A whopping $5.75bn, part of a $10bn debt offering, is set apart from other company’s green bonds, as it supports not only green initiatives, but additionally social initiatives.

“Such bonds are an emerging asset class and we hope this transaction will help develop this new market. We’re encouraged that there was such strong demand for these bonds from investors—they were significantly oversubscribed,” Porat noted.

Encouraging investors’ commitment to environmental and social responsibility, the bonds will fund ongoing and upcoming projects in order to tackle critical issues. Through benefitting communities, employees and stakeholders, the investments are set to fulfil Google’s mission of creating value over the long term.

Investment areas
The Sustainability Bond Framework will guide investments, ensuring transparency and alignment, with annual reports on which projects have been funding and the impact they will have.

Falling in line with the Green Bond Principles and the Social Bond Principles, the projects the investment will be put towards cover eight critical areas:

Energy Efficiency
Google data centres are some of the most efficient in the world through their optimisation of energy, water, and materials – now twice as energy efficient as most data centres.

Clean Energy
Google has committed $4bn to purchasing clean energy from over 50 wind and solar projects between now and 2034. They are also looking to source carbon-free energy for their operations 24/7, matching energy consumption with clean energy for their data centres.

Green Buildings
Today, more than 13 million square feet of Google offices are LEED certified.

Clean Transportation
With a commitment to promoting EVs and bicycles and the use of Google shuttles in the Bay Area, Google has saved 40,000+ metric tons of CO2 emissions.

Circular Economy and Design
Google is committed to maximising reuse across their operation, having shipped millions of devices made with post-consumer recycled plastic, and 100 percent of Nest products from 2019 on include recycled plastic.

Affordable Housing
Striving to be “a good neighbour”, the company has made a $1bn commitment to housing investment, helping to build 20,000 homes, with 5,000 affordable homes to help combat the lack of affordable housing in the Bay Area.

Commitment to Racial Equality
Through its $175+ million economic opportunity initiative, Google will be financing small businesses in Black communities, in addition to a $100 million YouTube fund to promote Black creators and artistic, acknowledging the link between racial equity and economic opportunity.

Support for Small Business and COVID-19 Response
To help with the devastation of COVID-19, Google has made an $800+ million commitment to small and medium-sized businesses, health organizations, governments, and health workers on the frontlines. Partnering, also, with Opportunity Finance Network (OFN) to provide low-interest loans to community development financial institutions, will, in turn, provide loans to small businesses in underserved communities in the US, also working with the American Library Association to create entrepreneurship centers across the U.S.

“This is the next chapter in our commitment to a more sustainable future for everyone,” Porat finishes.