Major US Companies Commit to Reducing Carbon Pollution Through $140 Billion in Low-Carbon Investments

Strategic Insights -

Thirteen of America's largest companies, including Apple, Coca-Cola, General Motors, and Walmart, have pledged to reduce carbon pollution through significant investments in renewable energy and low-carbon technologies. This commitment is part of the Obama Administration's American Business Act on Climate Pledge, which aims to cut nearly 6 billion tons of carbon pollution by 2030. The companies involved have combined revenue of over $1.3 trillion and a market capitalization of at least $2.5 trillion.

Key Takeaways:

  • Apple will bring an estimated 280 MW of clean power generation online by the end of 2016, investing in renewable energy projects across the US and China.
  • Berkshire Hathaway Energy will invest up to an additional $15 billion in renewable energy generation, with a focus on wind power in Iowa, and retire more than 75% of its coal-fueled generating capacity in Nevada by 2019.
  • Coca-Cola has pledged to reduce its carbon footprint by 25% by 2020, preventing approximately 20 million metric tons of carbon emissions annually, and has already implemented a program to reduce greenhouse gas emissions from its global fleet.
  • PepsiCo plans to strive for zero deforestation in its business operations and global supply chain by 2020, increase the amount of recycled content in its global packaging, and continue to reduce greenhouse gas emissions from its global fleet through the use of electric, hybrid, compressed natural gas, alternative fuel vehicles and other fuel efficiency programs.
  • General Motors aims to achieve 150 landfill-free facilities by 2020 and set a goal of having all manufacturing sites send zero waste to landfill.
  • The commitments announced so far total at least $140 billion in new low-carbon investment and more than 1,600 MW of new renewable energy, with companies striving for ambitious goals to cut emissions, reduce water intensity, purchase 100% renewable energy, and pursue zero net deforestation in supply chains.

Statistics:

  • 13 major US companies have committed to reducing carbon pollution through the American Business Act on Climate Pledge.
  • The companies involved have combined revenue of over $1.3 trillion and a market capitalization of at least $2.5 trillion.
  • Apple has reduced carbon emissions from its global corporate facilities, data centers, and retail stores by 48% since 2011.
  • Berkshire Hathaway Energy has invested over $15 billion in renewable energy generation under construction and in operation through 2014.
  • The company plans to invest up to an additional $15 billion in renewable energy generation.
  • Coca-Cola aims to reduce its carbon footprint by 25% by 2020, preventing approximately 20 million metric tons of carbon emissions annually.
  • PepsiCo has implemented a program to reduce greenhouse gas emissions from its global fleet and has included 111 million pounds of recycled polyethylene terephtalate (rPET) in its US beverage packaging in 2014.
  • General Motors aims to achieve 150 landfill-free facilities by 2020 and set a goal of having all manufacturing sites send zero waste to landfill.
  • The commitments announced so far total at least $140 billion in new low-carbon investment and more than 1,600 MW of new renewable energy.

Sources:

  • [Barbara Vergetis Lundin, "Thirteen Big-Name Companies Commit to Reducing Carbon Pollution," October 2015]
  • [Obama Administration, "The American Business Act on Climate Pledge"]
  • [Ceres, "Clean Trillion Campaign"]
  • [Coca-Cola, Sustainability Report 2014]
  • [PepsiCo, Sustainability Report 2014]
  • [General Motors, Sustainability Report 2014]