Alphabet (GOOGL) Google is moving closer to zero carbon goals with NV energy

AlphabetGOOGL continues to move towards achieving its zero greenhouse gas emissions goals.

Its Google division has reportedly partnered with NV Energy, a Berkshire Hathaway utility, to power its Nevada-based data centers with geothermal energy.

Google is seeking to increase the amount of carbon-free geothermal energy fed into the local grid for its operations from 3.5 megawatts to 115 megawatts over the next six years.

To complete the highlighted transaction, NV Energy entered into a purchase agreement with advanced geothermal developer Fervo Energy.

The Google-NV Energy partnership requires approval from state regulators.

Alphabet Inc. Price and Consensus

Alphabet Inc. Price Consensus Chart | Quote from Alphabet Inc

Zero carbon efforts are gaining popularity

Google, which has been carbon neutral since 2007, is committed to achieving net zero emissions across its operations and value chain by 2030.

The company’s goal is to reduce total absolute emissions in Scopes 1, 2 and 3 by 50% by 2030.

GOOGL plans to invest in nature- and technology-based carbon dioxide removal solutions to neutralize remaining emissions.

In this respect, the company’s huge investments in wind and solar energy are noteworthy. Google’s global operations are powered by 64% carbon-free energy, including wind and solar energy.

The shift to geothermal energy remains a major positive because this energy uses naturally occurring heat underground to produce renewable electricity, unlike solar and wind energy, which depend on the availability of sunlight and wind.

Google’s shift from fossil fuels to clean energy is expected to lower costs in the near and long term, which is a plus.

Bottom line

Zero-emission drive is gaining popularity across the technology sector.

Not just Alphabet, but companies like Amazon AMZN, Microsoft MSFT i Lam’s research LRCX also undertakes initiatives to reduce its overall carbon footprint and significantly reduce energy bills.

Amazon is known as the largest corporate investor in renewable energy. Growing investment in projects has accelerated the pace of its journey towards powering its infrastructure with 100% renewable energy. The target was originally intended to be achieved by 2030 and is now expected to be achieved by 2025. In 2021, the company achieved 85% renewable energy across its operations.

Microsoft is gathering strength to achieve negative greenhouse gas emissions by 2030. Additionally, MSFT aims to eliminate all greenhouse gas emissions by 2050.

Lam Research is committed to achieving its goal of net zero carbon emissions by 2050 and operating on 100% renewable energy by 2030.

Application

In this era, environmental, social and governance factors have become crucial to building a sustainable business. Currently, investors around the world not only look at how well a company is able to generate high profits, but also wonder how sustainable its operations are in the future.

Given this scenario, Alphabet, which sports a Zacks Rank #1 (Strong Buy), remains well-positioned to generate optimism among investors with its growing efforts to reduce its carbon footprint. You can see complete list of today’s Zacks #1 ranked stocks here.

Alphabet has gained 25.6% year-to-date, outpacing the Zacks Computer & Technology sector’s return of 10.2%.

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