Spotify, the world’s largest audio streaming platform, recently shared its financial results for the first quarter of 2025. Alongside its business growth, the company continues to make progress on its environmental goals.

This article reviews Spotify’s recent financial performance and highlights its actions to reduce carbon emissions toward net zero and tackle climate change.

Spotify Hits the High Notes in Q1 2025

Spotify delivered solid results in the first three months of 2025. The company’s revenue grew 15% year-over-year, reaching €4.190 billion (~$4.52 billion USD).

Subscription revenue made up most of this amount, rising 16% to €3.771 billion. Meanwhile, ad-supported revenue grew 8% to €419 million. This marks steady growth in both user subscriptions and the advertising business.

The platform now has 678 million monthly active users (MAUs), up 10% from a year ago. Of these, 268 million are premium subscribers, showing a 12% increase. Spotify’s growth is driven by higher user engagement, expanding content offerings, and stronger advertiser demand.

Spotify also saw an improvement in profitability. Its gross margin rose to 31.6%, up from 27.6% last year. The company reported €509 million in operating income, a 203% increase from the previous year. Spotify credited efficiency efforts and lower marketing costs for this positive shift.

Looking ahead, Spotify forecasts MAUs to reach 689 million and premium subscribers to hit 273 million by the end of Q2 2025. The company expects Q2 revenue to be about €4.1 billion (~$4.43 billion USD) and aims for continued margin improvement.

Spotify’s Net Zero and Climate Goals

While Spotify is focused on business growth, it also works to reduce its environmental footprint. The company has set a target to achieve net-zero greenhouse gas (GHG) emissions by 2030. This commitment covers emissions from Spotify’s operations (Scope 1 and 2) and its value chain (Scope 3).

Spotify’s climate strategy has three main parts: reducing emissions, using renewable energy, and supporting carbon removal.

Turning Down the Carbon Volume

Spotify tracks its emissions each year. In 2024, its total GHG emissions were 195,027 metric tons of CO₂ equivalent (MTCO₂e).

About 98% of these emissions came from its value chain — mostly from cloud services, advertising, marketing, and commuting. Only 2% came from direct operations like office energy use.

To reduce emissions, Spotify focuses on:

• Optimizing its use of cloud computing services to lower energy demand
• Reducing the impact of corporate travel and in-person events
• Engaging suppliers to encourage lower-carbon practices
• Improving energy efficiency at offices and data centers

Spotify aims to cut its Scope 1, 2, and 3 emissions by 50% by 2030 compared to a 2020 baseline.

For example, Spotify is working closely with major cloud providers to ensure their data centers use renewable energy. Streaming services rely heavily on data centers, so making this shift is key to cutting overall emissions.

Spotify also encourages advertising and content partners to measure and reduce their own footprints, helping reduce indirect impacts.

Streaming on Sunshine: 100% Renewables

The streaming giant powers 100% of its direct operations with renewable electricity. This means all offices, owned equipment, and data center activities under Spotify’s control use renewable energy. The company buys renewable energy credits (RECs) to match its electricity consumption in all locations.

Spotify also pushes for more renewable energy in the cloud services it uses. For instance, by working with cloud providers that are shifting toward wind and solar power, Spotify ensures that the infrastructure behind music streaming stays green.

In addition to electricity, Spotify continues to assess ways to lower emissions from heating, cooling, and commuting at its offices worldwide. Its goal is to use energy smartly at every level of the business.

Balancing the Beat with Carbon Removal

Even with the best efforts to cut emissions, Spotify knows that some emissions are hard to eliminate. To balance these unavoidable emissions, the company supports high-quality carbon removal projects. This is a key part of Spotify’s strategy of reaching net zero.

The streaming firm has bought verified carbon credits to offset part of its footprint, but it’s now focusing on carbon removals rather than offsets. The company carefully selects carbon removal projects that meet strict standards for durability, transparency, and independent verification.

Spotify invests in a mix of nature-based and technology-based carbon removal methods. The variety of these projects includes reforestation and afforestation projects that plant and maintain forests to absorb CO₂ from the air.

Additionally, Spotify looks for carbon removal projects that bring co-benefits. These include protecting biodiversity, supporting local communities, and improving air and water quality. This aligns with Spotify’s broader values around social impact and equity.

Keeping It Transparent: Reporting and Accountability

Spotify follows leading climate reporting frameworks. It aligns its disclosures with the Greenhouse Gas Protocol and uses third-party verification for its emissions data. The company also reports through CDP (formerly Carbon Disclosure Project) and supports the Science Based Targets initiative (SBTi).

Spotify’s annual Equity and Impact Report shares updates on climate goals, emissions data, and progress on key actions. Transparency is a central part of the company’s sustainability approach.

The Climate Champions Network

Spotify runs an internal Climate Champions network made up of employees who help reduce the company’s impact on the environment. These Climate Champions work in different ways. Some join formal working groups and leadership circles, while others are part of smaller project teams that create and lead grassroots projects.

Their main goal is to encourage their coworkers to make choices that are better for the climate. Climate Champions from different parts of the company meet regularly to share ideas, experiences, and tips that help everyone improve their climate efforts.

Encore: Profits and Planet in Harmony

Spotify acknowledges challenges in reaching net zero. Much of its emissions come from areas it does not directly control, such as cloud providers and advertising partners. Reducing these Scope 3 emissions requires strong collaboration across the value chain.

Another challenge is measuring the emissions tied to users streaming audio content. While user listening itself has a small footprint, the data storage and transfer behind it can be energy-intensive. Spotify is exploring ways to better understand and lower these indirect impacts.

Looking forward, Spotify will continue to:

• Engage suppliers and partners to improve sustainability practices
• Invest in new carbon removal technologies and scale nature-based projects
• Increase renewable energy use throughout its cloud supply chain
• Develop better tools to track and manage emissions from streaming activity
• Share regular updates on progress toward its 2030 net-zero goal

Spotify’s Q1 2025 results show strong financial performance, with rising users, revenue, and profitability. At the same time, the company stays committed to cutting carbon emissions and advancing climate action. By focusing on clean energy, reducing value chain emissions, and supporting carbon removal, Spotify aims to align its business with a sustainable future. 

• READ MORE: Verizon, AT&T, and T-Mobile: Who Wins the Financial and Net Zero Race?

The post Spotify Strikes a Chord: Big Q1 Gains and Bigger Climate Goals appeared first on Carbon Credits.

The telecommunications sector is growing fast as demand for faster networks and greener operations rises. Telecom giants like Verizon, AT&T, and T-Mobile are competing for market share while also racing toward their net-zero and sustainability goals. They are facing pressure to balance business growth with environmental responsibility.

This article looks at each company’s financial results for Q1 2025. It also highlights their progress towards net-zero and their efforts to reduce environmental impact.

Verizon: Strong Financials and Focused Sustainability Goals

Financial Highlights: 

• Revenue: $33.5 billion (1.5% increase year-over-year)
  
• Net Income: $5.0 billion (up from $4.7 billion in Q1 2024)
  
• Adjusted earnings: $12.6 billion (4% year-over-year growth)
• Wireless Service Revenue: $20.8 billion (2.7% increase year-over-year)

Steady Revenue Growth and Operational Efficiency

Verizon posted a solid financial performance in Q1 2025, with revenues of $33.5 billion, marking a 1.5% year-over-year growth. This growth came mainly from the wireless segment. Wireless service revenue grew by 2.7%, hitting $20.8 billion. 

The company’s net income also grew to $5.0 billion, compared to $4.7 billion in Q1 2024, reflecting a steady increase in profitability. Verizon’s adjusted earnings hit $12.6 billion. This is a 4% rise from last year. It shows how well the company controls costs and runs operations efficiently.

Verizon continues to show growth in its wireless business, with notable increases in its total customer base. The company focuses on 5G technology. Its strong position in the U.S. wireless market sets it up for more revenue growth.

The telecom’s strong finances let it reinvest in its infrastructure, innovation, and sustainability efforts.

Scaling Up Renewable Energy and Emission Reductions

Verizon aims for net-zero greenhouse gas (GHG) emissions by 2050. This goal matches the Science-Based Targets initiative (SBTi). The company has already made significant strides in reducing its carbon footprint.

By the end of 2023, Verizon had reduced its Scope 1 and 2 GHG emissions by 44% and its Scope 3 emissions by 20% compared to a 2019 baseline. These cuts come from Verizon’s energy efficiency programs. They also result from investments in renewable energy and efforts to engage the supply chain.

Verizon’s renewable energy commitments are particularly ambitious. The company has signed 28 renewable energy purchase agreements (REPAs). These agreements will provide about 3.6 gigawatts of expected generating capacity.

• RELATED: Amazon Expands Renewable Energy with 17 New Projects in Spain & First in Portugal

Verizon’s renewable energy target aims for 50% of its energy consumption to be sourced from renewable sources by 2025 and 100% by 2030.

The telecom giant’s energy-saving efforts have modernized data centers and network systems. Since 2018, this has helped avoid over 93 million metric tons of CO₂e.

The company supports its efforts by focusing on sustainable products. It also helps industries use renewable energy. Other major sustainability and net-zero initiatives of this telecom titan include: 

• Green Bond Financing: Verizon was the first U.S. telecom company to issue green bonds, raising $6 billion to fund renewable energy projects, energy efficiency improvements, and other sustainability initiatives.

• E-Waste Recycling and Circular Economy: In 2023, Verizon reused or recycled nearly 47 million pounds of electronic waste, including 1.3 million pounds of plastic and 1.9 million pounds of lead-acid batteries. The company strives to divert 100% of e-waste from landfills through reuse and responsible recycling.

• Tree Planting Initiative: As part of its environmental stewardship, Verizon has committed to planting 20 million trees worldwide by 2030.

AT&T: Robust Financials and Growing Sustainability Efforts

Financial Performance: 

• Revenue: $30.63 billion (2% increase year-over-year)
• Net Income: $4.7 billion (up from $3.39 billion in Q1 2024)
• Adjusted earnings: $11.5 billion (4.4% year-over-year growth)

Gains in Wireless and Fiber Performance

AT&T showed strong financial results for Q1 2025, with total revenues reaching $30.63 billion, a 2% increase year-over-year. This growth was driven by the success of its wireless and fiber broadband offerings.

Postpaid phone net additions hit 324,000. Fiber subscriber additions reached 261,000, which shows strong customer demand. The company’s net income for the quarter was $4.7 billion, up from $3.39 billion in the same period last year, indicating improved profitability. AT&T’s adjusted earnings also saw a healthy increase of 4.4% year-over-year, reaching $11.5 billion.

AT&T’s growth in fiber and wireless customers shows it can grow its market share. This happens even in a tough, competitive market. The company continues to focus on broadband and 5G growth as key drivers of its future performance.

AT&T aims to keep its momentum going. Its investments in 5G, fiber optics, and upgrading the network should help boost financial growth in the next few quarters.

Targeting Carbon Neutrality with Supplier and Customer Engagement

AT&T’s commitment to sustainability is evident in its goal to achieve carbon neutrality across its global operations by 2035. To date, the company has reduced its Scope 1 and 2 emissions by nearly 52% from a 2015 baseline.

• AT&T’s science-based targets aim to reduce these emissions by 63% by 2030.

The company aims for 50% of its suppliers to set science-based GHG reduction targets by 2024. By the end of 2023, 55% of them had already done this.

AT&T’s renewable energy efforts have been a critical component of its sustainability strategy. As of 2023, the company sourced 25.7% of its electricity from renewable energy, up from 20% in the previous year.

The telecom titan has made great strides in its Connected Climate Initiative. This program helps business customers lower their carbon footprint. This initiative has helped avoid 227.2 million metric tons of CO₂e by the end of 2024 (or 38.9 million metric tons of CO₂e for that year). The long-term goal is to cut 1 gigaton (or 1 billion metric tons) of CO₂e by 2035.

AT&T is also investing in sustainable products and services. This includes energy-efficient data centers and energy-saving solutions for customers.

In 2024, AT&T agreed to purchase carbon dioxide removal credits from 1PointFive, the carbon capture unit of Occidental Petroleum. These credits will come from 1PointFive’s Stratos direct air capture facility. The plant could capture up to 500,000 metric tons of CO₂ annually when operational. ​

• READ MORE: Amazon Enters First Carbon Removal Credits Deal With 1PointFive

The telecom giant also has the following net-zero efforts:

• Energy Efficiency and Network Optimization: The company drives operational and network energy efficiencies by updating systems and decommissioning obsolete assets to reduce annual energy consumption.

• Low-Carbon Fleet Transition: AT&T aims to reduce fleet emissions by at least 76% by 2035, investing in electric vehicles (EVs) and the necessary infrastructure to support them.

T-Mobile: Impressive Financials and Industry-Leading ESG Initiatives

Financial Results:

• Revenue: $20.89 billion (6.6% increase year-over-year)
• Net Income: $3.0 billion (24% increase year-over-year)
• Adjusted earnings: $8.26 billion (up from $7.65 billion in Q1 2024)

Leads in Revenue Growth and Customer Additions

T-Mobile is doing well financially. For Q1 2025, they reported revenues of $20.89 billion. This is a 6.6% rise compared to last year. Net income surged 24%, reaching $3.0 billion, driven by strong operational performance.

The company also saw a 29% increase in earnings per share (EPS), which reached $2.58 for the quarter. T-Mobile added 495,000 postpaid phone customers, further bolstering its market position.

The company’s adjusted earnings were $8.26 billion, up from $7.65 billion in Q1 2024. This shows its strong financial health and skill in managing costs while also investing in growth.

T-Mobile’s success comes from its strong leadership in wireless. It focuses on growing its 5G network. The company can attract and keep customers, especially in postpaid and fiber broadband, which helps it succeed in the tough U.S. market.

Setting Industry Pace with Bold Net-Zero and Green Energy Goals

T-Mobile aims high with its ESG goal. It plans to reach net-zero emissions for its entire carbon footprint by 2040. This target, validated by the Science Based Targets initiative (SBTi), reflects the company’s serious commitment to reducing its environmental impact.

As of 2023, T-Mobile has reduced its total Scope 1, 2, and 3 emissions by 30% compared to 2020 levels. This includes sourcing 100% of its electricity from renewable energy, a milestone it has maintained since 2021.

T-Mobile has also made significant strides in improving energy efficiency. For example, the company has reduced its energy consumption per petabyte of data by 62% since 2019.

T-Mobile has started a big effort to collect and recycle old devices. By 2023, they recovered 10 million devices for reuse, resale, or recycling. T-Mobile invests in big wind and solar projects. These help the company reach its clean energy goals.

The telecom company also employs these initiatives to boost its net-zero journey:

• Network Optimization: Decommissioned tens of thousands of macro cell sites resulting from the integration of the Sprint network and retired legacy technologies to reduce energy consumption.
  
• Energy-Efficient Technologies: Replaced traditional air conditioning units at cell sites with direct air-cooling systems and implemented software features to optimize energy use based on network traffic demands.
• Collaborative Commitments: Signed The Climate Pledge, joining a global initiative to achieve net-zero carbon emissions by 2040, and participates in RE100 and the EPA Green Power Partnership to promote renewable energy adoption.

Telecom’s Net-Zero Race: Who Steals the Show?

Verizon leads in revenue and net income. But in terms of ESG and net-zero commitments, T-Mobile is clearly leading, with its 2040 net-zero target and aggressive renewable energy goals. This includes sourcing 100% of its electricity from renewable sources.

Verizon follows closely, with a 2050 net-zero target and substantial progress in reducing its carbon emissions. AT&T has made progress in cutting Scope 1 and 2 emissions. However, it falls short in renewable energy use at 25.7%. In contrast, Verizon is at 34.4%, and T-Mobile leads with 100%.

Verizon and AT&T have ambitious strategies. However, T-Mobile stands out because it focuses on energy efficiency, device recycling, and renewable energy investments. Its complete approach and strong focus on cutting its carbon footprint give it an edge in measurable ESG progress.

The telecommunications industry’s major players are making notable strides in balancing financial performance with environmental responsibility. T-Mobile emerges as a leader in sustainability, while Verizon and AT&T continue to strengthen their ESG efforts.

As the telecom industry evolves, these three companies’ net-zero and sustainability commitments will play a crucial role in shaping corporate responsibility and environmental success.

• FURTHER READING: How To Reduce Scope 3 Emissions: Key Strategies That Work

The post Verizon, AT&T, and T-Mobile: Who Wins the Financial and Net Zero Race? appeared first on Carbon Credits.