Uber’s Q2 Earnings Beat Wall Street Expectations

Uber reported impressive second-quarter earnings on Tuesday, surpassing Wall Street estimates and causing the stock to rise about 6% at market open.

The company reported earnings of 47 cents per share, significantly higher than the 31 cents expected by analysts. Uber also posted better-than-expected revenue of $10.7 billion, slightly above the expected $10.57 billion. This represents a 16% increase from the $9.23 billion reported in the same quarter last year.

Uber reported a net income of $1.02 billion for the quarter, which included a $333 million pretax benefit from revaluations of Uber’s equity investments.

When it comes to strategic partnerships, Uber partnered with Instacart, adding a “restaurants” tab to the grocery delivery app, allowing users to order from restaurants with deliveries fulfilled by Uber Eats. Moreover, in July, Uber and Chinese electric vehicle maker BYD announced a collaboration to bring around 100,000 EVs to Uber drivers in Europe and Latin America. The companies also plan to work on future autonomous-capable vehicles for the Uber platform.

While BYD vehicles are not available in the U.S., Uber offers various incentives to encourage drivers to switch to battery-electric vehicles like those from Tesla, instead of using gas-powered cars.

This strong performance and achievements highlight Uber’s efforts to lead in the mobility and delivery sectors while transitioning towards more sustainable transportation solutions, as evidenced by its carbon emission reduction initiatives and net zero goals. 

Uber’s Science-Based Net Zero Targets and Environmental Commitments

Uber has committed to ambitious science-based targets to significantly reduce its greenhouse gas (GHG) emissions. The company aims to cut absolute Scope 1 and 2 emissions by 42% by 2030 and by 90% by 2040, using 2021 as the base year. 

As seen in the chart below, the mobility company’s carbon emissions are jumping to almost 32 million metric tons in 2023.

Data from Uber 2024 ESG Report

Additionally, Uber plans to decrease Scope 3 emissions from the use of sold products by 34% per service kilometer by 2030 and by 97% by 2040. These goals align with Uber’s broader objective of achieving net zero emissions across its entire value chain by 2040.

Investments in Zero-Emission Vehicles (ZEVs)

To support its transition to a more sustainable future, Uber is investing $800 million to help drivers switch to zero-emission vehicles (ZEVs). By the end of 2023, the company had allocated or invested over $439 million. This investment aims to ease the financial burden on drivers and accelerate the adoption of ZEVs across Uber’s platform.

Advocacy and Policy Support

Uber recognizes that the challenges of climate change and waste management cannot be tackled by any single entity alone. Thus, the company advocates for policies that support a shared agenda of economic, environmental, and equitable progress. 

Historically, the growth of battery EV markets and sustainable packaging solutions has been driven by strong government policies.

SEE MORE: Is the EV Market’s Momentum Slowing?

Uber’s ambitious targets—achieving a 100% zero-emission platform in the US, Canada, and Europe by 2030, and globally by 2040—reflect its commitment to science-based 1.5 degree–Celsius climate targets.

To achieve these goals, Uber supports comprehensive policy frameworks in five critical areas:

ZEV Supply
ZEV Incentives 
Battery EV Charging 
Urban Access for Green Vehicles
Responsible Packaging and Infrastructure

Promoting ZEV Access and Affordability

Uber is working to make ZEVs more accessible and affordable through various partnerships and programs. 

For instance, Uber has negotiated exclusive deals with leading companies like Hyundai, Kia, Nissan, Renault, MG, and Tesla. These partnerships aim to bring the upfront cost of an EV closer to that of an internal combustion vehicle.

The mobility company is also working with fleet partners to accelerate the adoption of EVs. In 2023, Uber signed a memorandum of understanding (MoU) with Tata Motors to bring 25,000 EVs to the platform in India by 2025. The company is also expanding its network of fleet partners, including a partnership with Zypp Electric to deploy 10,000 electric two-wheelers by 2024.

Boosting Consumer Access to Sustainable Rides

Uber offers a wide range of green and car-free ride options, providing access to no- and low-emission rides in over 250 metropolitan markets. The use of the following riding platforms (in Latin America) has increased by more than 340% year over year.

Uber Green: Uber Green is the most widely available on-demand mobility solution for no- or low-emission rides. It is offered at about the same price as UberX. 
Uber Comfort Electric: Uber Comfort Electric allows riders to request a trip in a premium zero-emission vehicle (ZEV), such as a Tesla or Polestar. 
Uber Planet: Uber Planet, pioneered in Latin America, allows riders to offset the carbon footprint of their trips through the app. Riders pay a slight price surcharge on the trip fare to offset their carbon footprint with carbon credits invested in internationally certified projects.

Uber’s expansion of these sustainable ride options aims to enhance consumer access to environmentally friendly transportation choices and reduce carbon emissions globally.

Relying on High-Quality Carbon Offsets

While Uber aims to achieve net zero emissions by 2040 with minimal reliance on carbon offsets, the company recognizes that strategic use of high-quality offsets may be necessary for hard-to-abate emissions. Uber’s approach to carbon offsets focuses on:

Scope 1 & 2 Emissions

Offsets are used where emissions are currently difficult or impossible to eliminate, such as in power generation and natural gas use. The company prefers alternatives like virtual power purchase agreements or 100% renewable power when available and affordable.

Consumer Scope 3 Emissions

Carbon offsets address emissions in markets lacking viable low-carbon solutions, including parts of Africa, Central and Eastern Europe, India, Latin America, the Middle East, and South Asia. This also applies to businesses like Uber Freight or Uber CarShare, where emissions are embedded rather than usage-based.

Uber’s strong Q2 performance, combined with substantial investments in zero-emission vehicles, underscores the company’s commitment to leading the mobility sector while pursuing carbon emission reduction goals. As the company continues to enhance its sustainable ride options and advocate for supportive policies, it can significantly help drive the transition towards a greener future.

The post Uber’s Q2 Results Are Strong But Do Its Net Zero Efforts at Par? appeared first on Carbon Credits.

Chevron, the leading oil and natural gas giant’s Q2 results indicated a decline in performance. The company’s profits fell due to operational and market challenges, reflecting the difficulties it faced during the quarter. However, its global production increased. But how about its emissions and zero goals? Let’s discover

Chevron’s Profits Decline Amid Production Growth

Chevron Corporation’s second-quarter 2024 earnings totaled $4.4 billion, a decrease from $6.0 billion in the same period in 2023. Simply put, the company’s profit slumped 19% this year.

CEO Michael Wirth said, “This quarter was a little light due to some operational and other discrete items that impacted results.”

This drop reflects reduced margins on refined product sales, the absence of favorable tax items, and adverse foreign currency effects that substantially reduced earnings by $243 million. Adjusted earnings were $4.7 billion ($2.55 per share), compared to $5.8 billion ($3.08 per share) last year.

Despite this, Chevron saw a notable 11% increase in global production, driven by the successful integration of PDC Energy and strong performance in the Permian and DJ Basins. The company also expanded its exploration footprint through agreements in Namibia, Brazil, Equatorial Guinea, and Angola.

In terms of financial activities, Chevron allocated $6.0 billion to shareholders during the quarter, including $3.0 billion in dividends and $3.0 billion in share repurchases. Cash flow from operations remained steady, supported by higher dividends from equity affiliates and reduced working capital.

Looking ahead, Chevron’s upcoming dividend of $1.63 per share underscores its commitment to returning value to shareholders amid operational growth and strategic expansions in key global markets.

Reuters reported that Chevron is counting on the Hess acquisition to secure a foothold in Guyana, which holds the largest oil discovery in nearly two decades. Subsequently, the company also aims for the deal to offset risks from its underperforming oil projects in Australia and Kazakhstan, where operational issues have again affected production and delayed maintenance work into the third quarter.

MUST READ: Chevron Finds Global Carbon Pricing Key for Low-Carbon Investments

Is Chevron’s Emission Reduction Plan Enough?

Chevron plans to allocate $8.0 billion to lower carbon energy investments from 2021 through 2028. This includes renewable fuels, carbon capture, offsets, hydrogen, and advanced technologies to enhance production and supply capabilities Additionally, the company will invest $2.0 billion in carbon reduction projects over the same period.

In 2023, Chevron’s emissions amounted to 745 million metric tons of carbon dioxide equivalent (MtCO₂e). Quite sadly, Chevron’s emissions had been steadily rising.

Image: Annual greenhouse gas emissions released by Chevron from 2016 to 2023 (in million metric tons of CO₂ equivalent)

Chevron’s Net Zero 2050 Aspiration

Chevron aims for net zero upstream Scope 1 and 2 greenhouse gas emissions by 2050 on an equity basis. Achieving this goal hinges on significant technological advances, including commercially viable low- or non-carbon energy sources. It also depends on supportive policies, successful carbon capture and storage negotiations, and the availability of cost-effective carbon credits.

2028 targets to lower the carbon intensity of operations

71 g CO₂e/MJ portfolio carbon intensity (Scope 1, 2, and 3)
24 kg CO₂e/boe (Barrel of Oil Equivalent) oil carbon intensity (Scope 1 and 2)
24 kg CO₂e/boe gas carbon intensity (Scope 1 and 2)
36 kg CO₂e/boe refining carbon intensity (Scope 1 and 2)

With this plan, the oil giant envisions to top the list of carbon intensity mitigators in oil, products, and natural gas.

GHG Emission Management

Chevron actively reduces carbon intensity by refining its portfolio, enhancing operations, and using its Marginal Abatement Cost Curve (MACC) process. It focuses on optimizing carbon reduction opportunities and integrating GHG mitigation technologies throughout its operations. The MACC process has identified over 150 GHG abatement projects.

This year Chevron plans to invest more than $600 million to advance these projects. From 2021 to 2028, Chevron expects to invest approximately $2 billion in these initiatives, aiming for around 4 mts of annual emissions reductions when completed.

The company targets key areas such as energy management, methane management (including venting, fugitive emissions, and flaring), CCUS, and offsets. Supportive policies like carbon pricing and effective carbon reporting are also a part of its GHG reduction protocol.

Chevron’s significant GHG mitigation projects include replacing diesel with alternative fuels in the Permian Basin and cutting 270,000 tons of CO2e since 2020. In France, the Oronite plant’s agreement with BioSynergy will meet 40% of its steam needs with biomass and solid recovered fuel, reducing CO2 emissions by 25,000 tonnes annually.

Combating Methane Emissions

Chevron has set a methane emissions performance goal of 2.0 kg CO₂e/boe upstream methane intensity by 2028. Since 2022, the company has designed new upstream facilities to avoid routine methane emissions. Notably, it has tested 14 advanced detection technologies since 2016, including aircraft-based gas mapping and satellite imaging.

Last year, Chevron contracted GHG Sat to monitor 18 onshore assets globally. Despite progress, accurate methane quantification remains challenging. To overcome these challenges, it has collaborated with third parties to enhance methane detection and measurement. Key partnerships are with Veritas and the Oil and Gas Methane Partnership.

Chevron’s Global Presence in Renewables 

By 2030, Chevron targets 100 mbd of renewable fuels, 25 mmtpa in offsets and CCUS, and 150 mtpa in hydrogen production capacity.

Renewable Fuels and Natural Gas

Chevron is advancing its renewable fuels to cut the carbon intensity of transportation. By 2030, Chevron aims for a production capacity of 100 mbd, including renewable diesel and sustainable aviation fuel. It is expanding its renewable diesel capacity with a new project in Louisiana and investing in feedstock development in Argentina.

The company’s renewable natural gas (RNG) projects mainly involve capturing dairy methane and turning it into useful fuel. It has partnered with Brightmark LLC to fund and operate biomethane projects and recently acquired Beyond6, LLC to expand its CNG stations.

A significant achievement in this space is its growing lower-carbon hydrogen and ammonia business. The company is working on the Advanced Clean Energy Storage Project (ACES I) in Utah and developing hydrogen infrastructure in the Gulf Coast region.

CCUS and Emerging Technologies

Chevron’s CCUS profile is quite impressive. Prime projects include Bayou Bend in Texas and the Gorgon project in Australia, one of the largest integrated CCS projects globally. Chevron is also investing in soil carbon projects with Carbon Sync to boost carbon sequestration.

READ MORE: Chevron Allots $26M to Carbon Capture and Storage in Australia

In Nevada, it is investing in geothermal projects with Baseload Capital, marking its entry into low- and medium-temperature geothermal energy. This marks a 100% commitment to reducing carbon emissions across major industries and hard-to-abate sectors,

Overall, the investment plan to achieve its net zero goals looks promising and we hope Chevron’s next quarter will bloom bright!

The post Chevron Reports Lower Q2 Earnings! What About Its Emissions? appeared first on Carbon Credits.

Amazon’s latest earnings report reveals a mixed bag: while the retail giant fell short of revenue and advertising expectations, its cloud business, AWS, exceeded forecasts.

As the company navigates these financial setbacks, its commitment to environmental sustainability stands out. Amazon is ramping up its efforts to tackle its carbon footprint and achieve net zero carbon by 2040, even as it grapples with some challenges in its operations.

Earnings Snapshot: AWS Shines Amid Financial Hiccups

Amazon reported Q2 revenue of $148 billion, slightly under the $148.8 billion forecast, with its advertising segment also missing expectations at $12.8 billion versus $13 billion. However, its cloud business, Amazon Web Services (AWS), exceeded expectations with $26.3 billion in revenue. 

CFO Brian Olsavsky noted AWS is on track for over $105 billion annually and that Amazon has invested over $30 billion in the first half of the year to support AI and cloud service expansion, with increased investments expected in the second half.

Despite Amazon reporting earnings per share (EPS) of $1.26—beating estimates of $1.04 and nearly doubling profits from the previous year—investors focused on the report’s weaknesses.

Amazon’s stock dropped over 11% in early trading on Friday after its Q3 forecast missed expectations. The company projected sales of $154 billion to $158.5 billion, below the analyst forecast of $158.43 billion. Expected operating income of $11.5 billion to $15 billion fell short of the $15.2 billion anticipated. 

Behind the financial misfits lies the retail giant’s success in tackling its environmental and carbon footprint. 

Amazon’s Carbon Footprint Progress and Challenges 

In 2023, Amazon reduced its absolute carbon emissions by 3%, driven by an 11% decrease in Scope 2 emissions from electricity and a 5% drop in Scope 3 emissions. However, Scope 1 emissions, related to direct operations, increased by 7% due to higher transportation fuel use.

Despite these increases, Amazon’s carbon intensity improved for the fifth consecutive year, dropping 13% from 2022.

Chart from Amazon’s 2023 Sustainability Report

Amazon’s Scope 1 emissions, which come from its logistics and transportation fleet, rose by 7% and now represent 21% of its total footprint. This increase is linked to higher package volumes and the growth of Amazon’s logistics network. Efforts to reduce emissions per package include optimizing packaging through AI and reorganizing delivery routes to cut down on travel distances, saving nearly 16 million miles in 2023.

For Scope 2, which covers emissions from electricity used in Amazon’s facilities, there was an 11% decrease, representing 4% of the total footprint. This reduction was achieved by using renewable energy sources, including wind and solar. 

In 2023, Amazon matched 100% of its global electricity consumption with renewable energy—seven years ahead of its 2030 target. The company’s renewable energy portfolio expanded to 28 gigawatts, making Amazon the largest corporate buyer of renewable energy for the fourth consecutive year.

READ MORE: Eureka Moment! Amazon Hits 100% Renewable Energy Goal 7 Years Ahead

Scope 3 emissions, which include those from supply chain activities, decreased by 5% and account for 75% of Amazon’s total carbon footprint. This reduction resulted from improvements in building construction practices and a shift toward using Amazon’s logistics providers. 

The online retailer is focusing on reducing embodied carbon in construction by using lower-emission materials, resulting in a decrease of 79,500 metric tons of CO2e from new projects.

Amazon’s Bold Strategy Towards Net Zero

Amazon is committed to achieving net zero carbon emissions by 2040 through a multi-faceted approach involving investment, innovation, and collaboration. The company’s strategy includes reducing its carbon footprint, engaging with suppliers, and investing in carbon-neutralization and carbon-free energy technologies.

At the end of 2023, The Climate Pledge, an initiative Amazon co-founded, included 473 signatories aiming for net zero carbon emissions by 2040. The pledge has seen increased collaboration, with five new joint projects launched in 2023. Amazon supports this effort through its $2 billion Climate Pledge Fund, investing in breakthrough technologies that can lower the cost of decarbonization.

Carbon Neutralization

Amazon’s priority is to eliminate emissions within its operations and invest in carbon-neutralization efforts. This includes reducing emissions through targeted investments and partnerships, focusing on three key areas: 

reducing deforestation, 
advancing nature-based carbon removal, and 
scaling up carbon removal technologies. 

The company engages in initiatives such as the Lowering Emissions by Accelerating Forest Finance (LEAF) Coalition, which mobilizes funds to protect tropical forests and support community programs. Amazon also funds projects like SeloVerde, an AI tool for deforestation traceability, and supports agroforestry projects in the Amazon rainforest to enhance carbon storage and community livelihoods.

Carbon-Free Energy

Amazon’s net zero strategy includes transitioning to carbon-free energy sources, such as wind, solar, and nuclear power. The company has set ambitious goals to match 100% of its electricity consumption with renewable energy and invest in wind and solar capacity equivalent to the energy used by its Echo, Fire TV, and Ring devices. 

Amazon’s efforts extend to energy efficiency, with innovations aimed at optimizing operational energy use and reducing energy consumption. The company is also expanding battery storage to support grid decarbonization and exploring diverse carbon-free energy sources to ensure a resilient and sustainable energy supply.

Supplier Engagement and Technology Investment

A significant part of Amazon’s strategy involves working with suppliers to reduce emissions across the supply chain. The retail and cloud giant has identified its highest-emitting suppliers, representing over 50% of its Scope 3 emissions, and expects them to provide decarbonization plans. 

The company has launched the “Amazon Sustainability Exchange,” a platform to share resources and guidelines to help other companies achieve net zero carbon emissions. This engagement is crucial as Scope 3 emissions are beyond Amazon’s direct control but play a significant role in the overall carbon footprint – over 50% of Scope 3 emissions.

Amazon continues to invest in emerging technologies to advance its sustainability goals. This includes supporting direct air capture (DAC) technologies that remove CO2 from the atmosphere and investing in modular DAC systems to drive down costs and scale up carbon removal efforts. 

Overall, behind financial hiccups, Amazon continues to invest in carbon abatement projects and innovative technologies, such as electric vehicles and energy-efficient chips, to drive long-term decarbonization and enhance sustainability across its operations.

SEE MORE: Amazon’s Own Carbon Offset Standard Sparks Concerns Over Market Confusion

The post Is Amazon’s Carbon Goal Enough to Offset Its Financial Hiccups? appeared first on Carbon Credits.

Meta’s Earnings Surge Amid Strong Q2 Results

Meta’s shares surged about 5% in after-hours trading on Wednesday following a robust earnings report that exceeded analysts’ expectations for the second quarter. The company, which owns Facebook, Instagram, and WhatsApp, reported $39.07 billion in revenue and $5.16 earnings per share. Both surpassed market predictions of $38 billion in revenue and $4.7 earnings per share. 

CEO Mark Zuckerberg highlighted the success of Meta AI and the company’s growth across its apps, including advancements in AI technology and Ray-Ban Meta AI glasses. The tech giant indicated that AI investments will be a significant driver of capital expenditure growth in 2025.

Meanwhile, other major tech companies have struggled recently, as their earnings reports didn’t show sufficient returns on their multibillion-dollar AI investments. This led to a decline in shares of Alphabet, Tesla, and Microsoft. But same with its peers, Meta is also faced with the biggest environmental challenge of tackling its growing carbon footprint, mainly due to AI. 

How Does Meta Deal With Its Ambitious Net Zero Goal?

Meta, the world’s fifth-largest tech company, is tackling the challenge of sustainability with ambitious targets and bold actions. Having achieved net zero emissions in global operations by 2020, the company now aims to achieve net zero value chain emissions by 2030. This is a significant challenge, as 99% of Meta’s carbon footprint in 2022 came from Scope 3 emissions, which continue to rise.

Rachel Peterson, Vice President of Data Centre Strategy at Meta, acknowledged the difficulty of this task in the company’s 2023 Sustainability Report. She noted that Meta’s Scope 3 emissions are increasing as the company supports the global demand for its services.

Meta is addressing this challenge by focusing on efficiency, circularity, and low-carbon technology. Through its supplier engagement program, the company aims to decarbonize its supply chain and enable at least two-thirds of its suppliers to set Science Based Targets initiative (SBTi)-aligned reduction targets by 2026.

To reach its sustainability goals, Meta reduced operational emissions by 94% from a 2017 baseline, primarily by powering its data centers and offices with 100% renewable energy. These renewable energy commitments have resulted in a reduction of over 12.3 million metric tons of carbon dioxide equivalent (CO2e) since 2018.

Reducing Emissions

Reducing greenhouse gas (GHG) emissions across Meta’s global operations and value chain is a top priority and a critical strategy for reaching net zero. Meta recognizes that failing to reduce emissions today will result in a high-carbon intensity business model in the future.

Meta’s approach to emissions reduction is guided by several core principles:

Choosing Better: Incorporating principles of circularity into the supply chain, construction, and purchases.
Designing with Less: Reducing the volume of materials in construction and hardware, extending the life of hardware components, and minimizing waste.
Embracing Low-Carbon Technology: Finding alternatives such as low-carbon fuels and innovative new materials.

Enabling Renewable Energy

Supporting Meta’s operations with 100% renewable energy is a critical component of the company’s net zero strategy. This task becomes increasingly challenging as the business grows. 

Meta partners with many of the largest utilities in the U.S. to integrate renewable energy into their systems in ways that benefit both Meta and other customers. The tech giant’s portfolio of over 10,000 megawatts (MW) of contracted renewable energy projects positions it as one of the largest corporate buyers of renewable energy worldwide. 

In the U.S., Meta boasts the largest operating portfolio, with more than 5,500 MW of renewable energy capacity currently online. Meta’s renewable energy projects represent an estimated $14.2 billion in capital investment for new infrastructure. 

Data Center Emissions

Facebook parent’s company focuses on circularity by designing hardware for efficiency and repairability. Its Design for Circularity guide integrates dematerialization, circular materials, reuse, and end-of-life principles. Key strategies include extending hardware lifespans, reusing components, and recycling end-of-life materials.

Meta partners with downstream firms to responsibly manage and repurpose residual materials, advancing its circular supply chain goals. Still, some emissions from hard-to-abate sectors will be difficult to reduce by the end of the decade. To address these, Meta has turned to carbon removal projects, a key component of its emissions reduction strategy.

Carbon Removal Credits: A Key to Slash Scope 3 Emissions

Meta’s diverse approach to carbon removal includes both nature-based and technological solutions. This strategy involves purchasing carbon credits from projects that align with Meta’s principles, ranging from reforestation to direct air capture technology.

Since 2021, Meta has supported numerous nature-based carbon removal projects worldwide. These include increasing forest carbon stock in community ejido forests in Oaxaca and protecting forests that provide habitat for salmon in California. 

Demonstrating its commitment to nature-based solutions, Meta recently signed a major carbon credits deal for 6.75 million carbon credits with Aspiration, a leading provider of sustainable financial services. These credits come from various ecosystem restoration and natural carbon removal approaches, including reforestation, agroforestry, and sustainable agricultural practices.

Meta’s role in the voluntary carbon market extends beyond purchasing credits. The company also supports new project development through financing and encourages the evolution of standards to bring more certainty to the market. 

Additionally, Meta collaborates with the World Resources Institute to develop methods for mapping forest canopy height using Meta AI training models. This initiative aims to provide publicly available data on forest canopy in areas like California and São Paulo, Brazil.

In 2022, Meta joined forces with other major tech companies to accelerate the development of carbon removal technologies by guaranteeing future demand. This effort, known as Frontier, is a $925 million joint commitment between Meta, Stripe, Shopify, McKinsey Sustainability, and Alphabet. 

READ MORE: Google, Meta, Microsoft, and Salesforce Launch “Symbiosis”

Meta’s strong financial performance and ambitious net zero goals underscore its commitment to innovation and environmental responsibility. As it continues to invest in AI and renewable energy and carbon removals, Meta is balancing its financial growth and environmental impact.

The post Meta’s Q2 Triumph: Earnings Soar And Carbon Removal Deals Multiply appeared first on Carbon Credits.