Meta, the parent company of Facebook, Instagram, and WhatsApp, has reported second-quarter earnings that surpassed expectations, demonstrating robust revenue growth and significant advancements in AI technology. Despite grappling with challenges related to AI-related carbon emissions, Meta remains at the forefront of the tech industry with its ambitious sustainability targets and extensive carbon removal initiatives.
Meta’s shares soared approximately 5% in after-hours trading on Wednesday, following a strong earnings report that outperformed analysts’ projections for the second quarter. The company disclosed $39.07 billion in revenue and $5.16 earnings per share, exceeding market forecasts of $38 billion in revenue and $4.7 earnings per share.
CEO Mark Zuckerberg emphasized the success of Meta AI and the company’s expansion across its platforms, including advancements in AI technology and the introduction of Ray-Ban Meta AI glasses. Meta indicated that investments in AI will be a significant driver of capital expenditure growth in 2025, distinguishing itself from other major tech firms that have recently struggled to yield substantial returns on their multibillion-dollar AI investments.
Amidst the success, Meta, like its competitors, is confronted with the pressing environmental issue of addressing its expanding carbon footprint, primarily attributed to AI technologies.
Meta, positioned as the world’s fifth-largest tech company, is confronting sustainability challenges head-on with ambitious objectives and decisive actions. Having achieved net zero emissions in global operations by 2020, Meta now aims to attain net zero value chain emissions by 2030. However, the company faces a significant hurdle as 99% of Meta’s carbon footprint in 2022 stemmed from Scope 3 emissions, which are on the rise.
Rachel Peterson, Vice President of Data Centre Strategy at Meta, acknowledged the complexity of this endeavor in the company’s 2023 Sustainability Report, highlighting that Meta’s Scope 3 emissions are escalating as global demand for its services grows. Meta is combatting this issue by prioritizing efficiency, circularity, and low-carbon technology, aiming to decarbonize its supply chain through a supplier engagement program by 2026.
To achieve its sustainability objectives, Meta has reduced operational emissions by 94% since 2017, primarily by transitioning its data centers and offices to run on 100% renewable energy. These commitments have led to a reduction of over 12.3 million metric tons of carbon dioxide equivalent (CO2e) since 2018.
Reducing greenhouse gas emissions across Meta’s global operations and value chain is a paramount focus and a crucial strategy for achieving net zero. Meta understands that failing to decrease emissions now will result in a high-carbon business model in the future. The company’s approach to emissions reduction is guided by core principles such as incorporating circularity into the supply chain, reducing material volume, embracing low-carbon technology, and supporting operations with 100% renewable energy.
Meta partners with major U.S. utilities to integrate renewable energy into their systems, making it one of the largest corporate buyers of renewable energy globally. With over 10,000 megawatts (MW) of contracted renewable energy projects, Meta’s commitment to renewable energy is evident, with more than 5,500 MW of renewable energy capacity currently online in the U.S.
Meta’s circularity focus extends to designing hardware for efficiency and repairability, integrating dematerialization, circular materials, reuse, and end-of-life principles. The company collaborates with downstream firms to responsibly manage and repurpose residual materials, advancing its circular supply chain goals. However, some emissions from hard-to-abate sectors remain challenging to reduce by the end of the decade, leading Meta to invest in carbon removal projects as a key component of its emissions reduction strategy.
Meta’s approach to carbon removal encompasses both nature-based and technological solutions, involving the purchase of carbon credits from projects aligned with its principles, such as reforestation and direct air capture technology. The company has supported various nature-based carbon removal projects worldwide since 2021, including initiatives in Oaxaca and California.
In a recent move, Meta secured a substantial carbon credits deal for 6.75 million carbon credits with Aspiration, focusing on ecosystem restoration and natural carbon removal approaches. The company’s involvement in the voluntary carbon market extends beyond purchasing credits, as it supports new project development and collaborates with organizations like the World Resources Institute to advance carbon removal technologies.
Meta’s commitment to innovation and environmental responsibility is underscored by its strong financial performance and ambitious net zero goals. As the company continues to invest in AI, renewable energy, and carbon removal initiatives, it strives to strike a balance between financial growth and environmental stewardship.
