Microsoft has made significant strides in its sustainability initiatives by expanding its partnership with Stockholm Exergi to a groundbreaking $1.4 billion agreement focused on carbon dioxide removal (CDR).
Microsoft Enhances Carbon Removal Commitment via Expanded Partnership with Stockholm Exergi
This enhanced collaboration is not only set to capture 800,000 tonnes of CO₂ annually starting in 2028, but will also aim for over 5 million tonnes of climate-impactful removals over a decade.
This deal marks the largest permanent CDR commitment made by any corporation to date and sets a new standard in the realm of carbon removal technologies.
The Bioenergy with Carbon Capture and Storage (BECCS) model is central to this agreement. According to the International Energy Agency (IEA), BECCS is anticipated to account for 10-15% of the cumulative CO₂ removal required to achieve global net-zero goals by 2050.
However, the current state of BECCS deployment is modest, with only about 2 million tonnes being captured annually as of 2023. Nevertheless, there are growing signals of investment and policy momentum that indicate an inflated demand for these technologies.
Operational and planned BECCS capture capacity vs. the Net Zero Scenario, 2022-2030
Source: IEA
Understanding the Market Dynamics Behind BECCS
The growing interest in carbon credits and sustainable practices is transforming the CDR sector. The global market for carbon dioxide removal, which includes both engineered and nature-based solutions, was valued at $2.1 billion in 2023, with forecasts suggesting it could burgeon to over $100 billion by 2030.
As the market matures, BECCS is anticipated to play a critical role in meeting carbon reduction targets.
Specifics of the Stockholm Exergi facility demonstrate its potential to serve as a pivotal case study in scaling BECCS operations within urban energy systems. The facility already utilizes biomass for district heating, perfectly aligning with Sweden’s supportive regulatory framework. Carbon pricing in Sweden exceeds $130 per tonne, creating a conducive environment for the large-scale implementation of CDR projects.
Microsoft’s Sustainability Strategy and Commitment
Microsoft’s long-standing commitment to sustainability includes an ambitious goal to achieve carbon negativity by 2030, alongside a plan to remove all historical emissions by 2050.
In fiscal year 2023 alone, the tech giant secured 1.4 million tonnes of carbon removal, 40% of which originated from engineered solutions like BECCS.
This partnership with Stockholm Exergi significantly broadens Microsoft’s portfolio and illustrates corporate confidence in long-duration carbon removal technologies.
As the demand escalates for transparent and verifiable CO₂ removal, standards are tightening. Independent evaluations, such as those provided by Carbon Direct, have become essential in validating the effectiveness and durability of carbon removal projects.
These due diligence efforts establish credibility, which is increasingly important as both regulatory frameworks evolve and the voluntary carbon market matures.
This strategic alignment between a tech giant and a leading sustainable energy company can reshape perceptions and expectations within the carbon credits market.
Corporations like Microsoft, Stripe, and Shopify are spearheading commitments to advance-market purchases, showcasing their roles as key players in promoting durable carbon removal solutions.
As the regulatory landscape shifts to favor permanent and measurable CDR solutions, BECCS is projected to command a growing premium in the voluntary carbon market. Industry experts predict that as more companies adopt similar long-term agreements, the viability of these technologies will be more widely recognized, transforming the CDR landscape.
Source: Microsoft
The Broader Context of Climate Change Mitigation
The urgency of climate change mitigation continues to push organizations to reconsider their environmental footprints critically. Enhancing commitments like Microsoft’s partnership with Stockholm Exergi highlights the growing significance of green technology in addressing climate challenges.
The collective aim is to navigate complex environmental landscapes and foster sustainable practices that align with global climate goals.
In summary, the partnership between Microsoft and Stockholm Exergi exemplifies the power of collaboration in combating climate change through cutting-edge technology and innovation. As the carbon removal market evolves, such initiatives will be pivotal in driving transparency and accountability while fostering a more sustainable future.
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Sustainable investing has gained tremendous traction, with younger investors leading the charge. A recent Morgan Stanley report shows that 84% of U.S. individual investors are interested in sustainable investing. Among Millennials and Gen Z, this interest jumps to 85%. This trend highlights a big shift in financial priorities, as younger investors want their strategies to match their values.
Why Young Investors Prefer Sustainability
A key factor boosting the appeal of sustainable investments is investor confidence in financial performance. About 68% of people in Morgan Stanley’s surveys think sustainable investments can provide returns that are as good or better than traditional ones. This belief rose from 57% in 2019, which shows a clear trend. More people accept sustainable finance as a valid investment strategy.
84% of U.S. individual investors express interest in sustainable investing, 77% globally.
Researchers recorded an 85% interest rate among Millennials and Gen Z.
Confidence in performance has increased from 57% in 2019.
About 84% believe that ESG funds can deliver returns that match the market while also creating positive social or environmental impacts.
Source: Morgan Stanley
Newer market data reinforces this confidence. In the fourth quarter of 2024, global sustainable open-end and exchange-traded funds (ETFs) saw record inflows of $16 billion. This amount is nearly double the $9.2 billion from the previous quarter.
These steady inflows show that investors see sustainable assets as financially competitive. This is especially true as more data on long-term returns come out.
Younger generations, especially Gen Z and Millennials, care about ethical investing. They also want to secure their financial futures. They link sound financial performance to eco-friendly investments. This shift is changing the investment landscape and making sustainable finance a key part of mainstream investing.
Market Trends in Sustainable Investing
The growing momentum of sustainable investing reflects a larger market shift. Global sustainable assets under management (AUM) are about $30 trillion now. Bloomberg analysts expect them to rise to over $40 trillion by 2028.
Source: Bloomberg
Investors want more, and strong performance numbers support this explosive growth. This trend shows that customers care more about ethics in their investments, not just profits.
In the U.S., sustainable investment assets reached $6.5 trillion by the end of 2024. This amount makes up around 12% of all professionally managed assets. Meanwhile, sustainable funds’ assets globally reached $3.56 trillion, marking a 4.8% increase from the prior year.
Sustainable funds made up 6.8% of total assets, down from 7.3% in 2023. Still, strong inflows show that investors remain interested, even with market ups and downs.
Remarkably, the Morgan Stanley survey suggests that nearly 80% of global investors take a company’s carbon footprint reporting and its plans to cut greenhouse gas emissions into account when deciding on new investments.
Source: Morgan Stanley
However, this does not mean traditional energy companies are excluded. In fact, 51% of investors are open to investing in traditional energy companies if they have strong plans to lower emissions and address climate change.
This interest is even higher among investors who are very focused on sustainable investing:
62% of those highly interested in sustainable investing would consider traditional energy firms with solid climate plans.
55% of those who list climate action as a top priority would also invest under these conditions.
Source: Morgan Stanley
Investors are clearly looking for companies to show clear strategies for reaching their decarbonization goals. At the same time, many individual investors are also seeking ways to reduce the carbon footprint of their own portfolios. More than 60% said they would likely buy carbon offsets if they were available.
Gen Z and Millennials: The New Financial Powerhouses
Generational influence is palpable in today’s financial markets. Gen Z and Millennials make up almost 60% of the global workforce. This gives them the power to shape corporate strategies and practices.
These two generations are not only prepared to invest but also to drive sustainable consumption patterns. Their values focus on social responsibility and longevity. These beliefs guide the path of sustainable finance.
The survey found that younger investors show much stronger interest in sustainable investing than older groups. 99% of Gen Z (ages 18–28) and 97% of Millennials (ages 29–44) are interested, with about 70% of each group “very interested.”
68% of Gen Z and 65% of Millennials have over 20% of their portfolios in investments with positive social or environmental impact, compared to 37% of Gen X and 22% of Baby Boomers.
Additionally, 80% of Gen Z and Millennials plan to increase these investments, versus 56% of Gen X and 31% of Boomers.
Corporate reporting has adapted accordingly. In 2024, about 90% of S&P 500 companies have published ESG reports. Many of these reports explain how climate change and social factors affect their operations and long-term plans. This rise in ESG disclosures signals that companies recognize investor expectations regarding transparency and sustainability.
The Future of Sustainable Investing
The implications of this shift are significant. Sustainable investing has transitioned from a perceived ethical choice to a financially sound strategy. As regulations grow, following ESG principles is now essential. Companies must adopt these practices to ensure long-term success and earn investor trust.
In the U.S., the SEC plans to complete climate disclosure rules by 2025. Companies must share detailed data on their greenhouse gas emissions and climate risks.
The U.K. will start new rules in April 2025. Funds using terms like “sustainable” or “ESG” must meet strict criteria. These rules are based on one of four official fund classifications. These developments aim to reduce greenwashing risks and offer clearer information to investors.
Yet, the market faces short-term hurdles. In March 2025, ESG-focused mutual funds and ETFs saw a net outflow of $2.94 billion. This shows that investors are cautious due to political pushback and economic uncertainty. Moreover, ESG bond fund revenue growth has stagnated in Europe, rising just 2% in 2024.
Despite current headwinds, the long-term outlook remains strong. A US SIF survey shows that 73% of asset managers expect sustainable investing to continue growing rapidly over the next two years. Several factors drive this optimism. These include client demand, changing regulations, better ESG data quality, and corporate innovation.
This shift shows that sustainable investing is here to stay. It is changing how consumers behave and how companies plan, and it is happening on a large scale. This will change financial landscapes in the years ahead.
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In the first quarter of 2025, pharmaceutical giants Novartis and AstraZeneca posted impressive financial results. Both were driven by strong drug performance and strategic investments.
At the same time, each firm made notable strides in reducing carbon emissions and pushing toward ambitious sustainability targets. This head-to-head comparison looks at their Q1 2025 financial performance and environmental impact to see which company came out on top.
Novartis Sales Jump in Q1 2025
Novartis delivered a strong start to 2025, reporting first-quarter sales of $13.2 billion—up 15% in constant currency. This surpassed analysts’ estimates of $13.12 billion. As a result, the company raised its full-year outlook. It now expects high single-digit sales growth and low double-digit growth in core operating income.
Operating income surged 44% to $4.7 billion, while net income rose 37% to $3.6 billion. Core operating income reached $5.6 billion, driven by solid sales and disciplined spending.
Source: Novartis
Blockbuster Drugs Power Growth
Several key medicines fueled this strong performance:
Entresto: $2.26 billion (+22%)
Cosentyx: $1.53 billion (+18%)
Kisqali: $956 million (+56%)
Leqvio: $257 million (+72%)
Moreover, Novartis continued to focus on four high-impact areas like cardiovascular, immunology, neuroscience, and oncology. At the same time, it increased investments in cutting-edge platforms like gene therapy, radioligand therapy, and xRNA. The company also pushed for deeper market penetration in the US, China, Germany, and Japan.
Cash Flow Up, But Debt Grows
Free cash flow jumped 66% to $3.4 billion. However, net debt rose to $22.3 billion. This increase was mainly due to a $5.3 billion dividend payout, share repurchases, and investments in intangible assets.
Growth Outlook Remains Strong
Looking ahead, Novartis plans to accelerate growth through innovation and new product launches. It remains committed to R&D, digital technologies, and global expansion. Backed by strong cash generation and solid credit ratings, the company remains well-positioned for the rest of the year.
Vas Narasimhan, CEO of Novartis commented,
“Novartis has had a strong start to the year, delivering a +15% cc increase in sales and a +27% cc rise in core operating income in Q1. Our priority brands, including Kisqali, Kesimpta and Leqvio, continue to show strong momentum, which we anticipate will drive our growth through 2030 and beyond. We also achieved significant innovation milestones in the quarter, with new approvals for Pluvicto in the pre-taxane setting, Vanrafia for IgA nephropathy, and Fabhalta for C3G. Additionally, we completed global submissions for remibrutinib in CSU, the first indication for this promising pipeline-in-a-pill. We remain focused on advancing our leading pipeline and confident in achieving our growth outlook.”
Novartis on Track to Meet 2025 Sustainability Goals
Novartis is making steady progress toward its environmental goals. The company has already met its 2025 targets for reducing water use and waste. The Taskforce on Nature-related Financial Disclosures (TNFD) framework guides its broader sustainability efforts, showing a deep commitment to protecting the planet.
Source: Novartis
Big Cuts in Carbon Emissions
Novartis is cutting its carbon footprint aggressively. It plans to reach carbon neutrality in Scope 1 and 2 emissions by 2025. It follows the Science-Based Targets initiative and supports global efforts to limit climate change to 1.5°C.
By 2030, it aims to slash emissions by 90% from 2022 levels. The company also targets a 42% cut in Scope 3 emissions from suppliers and product use.
Scope Emissions
In 2023, Scope 1 and 2 emissions totaled 298 tCO₂e, and Scope 3 emissions were 4,529 tCO₂e.
Most of the company’s environmental impact, about 95%, comes from direct operations such as land use, water use, and upstream emissions.
Source: Novartis
Novartis intends to achieve net-zero emissions across its entire value chain by 2040.
Source: Novartis
Clean Energy Initiatives
The pharma giant plans to switch to 100% renewable electricity by 2025. To meet this goal, it’s investing in clean energy projects like biomass steam systems, electric boilers, solar thermal energy, and electric vehicles for its fleet.
The company also works closely with suppliers to add environmental standards to its contracts.
Water and Waste Goals Achieved
Novartis has reduced water usage at key sites, especially in water-stressed regions. It ensures no harmful impacts on water quality from its factories, labs, or suppliers.
On the waste front, the company plans to reduce disposal by 30%, making its operations cleaner and more efficient.
New Focus on Nature and Raw Materials
The company is expanding its efforts to protect nature and improve raw material sourcing. Some measures include biodiversity assessments at sites near sensitive ecosystems and creating nature management plans where needed.
Additionally, it’s shifting to more sustainable materials, starting with paper-based packaging.
Source: Novartis
Novartis is building a greener future through innovation, strong partnerships, and responsible action. From carbon cuts to water savings, the company is proving that environmental progress and business growth can go hand in hand.
AstraZeneca’s Q1 2025: Sales and Profit Soar on Strong Drug Performance
AstraZeneca posted a 10% rise in revenue at constant exchange rates, reaching $13.59 billion in Q1 2025, up from $12.68 billion last year. This growth came from strong demand for cancer and biopharma drugs across all key markets. The company’s net profit grew by 34% to $2.92 billion.
Source: AstraZeneca
Tagrisso Leads the Pack
Tagrisso, AstraZeneca’s top lung cancer drug, generated $1.68 billion in sales. It was the company’s highest-selling medicine and the biggest driver of growth this quarter.
Furthermore, AstraZeneca saw strong R&D progress with five positive Phase III trials and 13 new drug approvals in major regions. Key oncology trials included DESTINY-Breast09, SERENA-6, and MATTERHORN.
Smart Deals to Fuel Long-Term Growth
In the first quarter of 2025, AstraZeneca made several smart business moves to strengthen its pipeline and technology base. It is heavily investing in cutting-edge technologies and expanding its global research and development (R&D) presence. These moves are aimed at driving long-term growth and staying ahead in the biopharma space.
JV for Vaccine Launch
Launched a vaccine joint venture in China with BioKangtai and entered research partnerships with Syneron Bio and Tempus AI to boost innovation in cancer treatment.
Advancing Cell Therapy
Proposed to acquire EsoBiotec to enter the in-vivo cell therapy space. EsoBiotec’s technology allows for “off-the-shelf” cell therapies, meaning ready-to-use treatments that don’t require custom patient cells.
Exploring Novel Drug Technologies
Partnered with Harbour BioMed to develop multi-specific biologics, which can target multiple disease pathways at once.
Teamed up with Syneron to create macro-cyclic peptides, a new type of molecule that could improve how drugs work in the body.
Improving Drug Delivery Methods
Gained exclusive rights to ALT-B4 from Alteogen. This technology helps deliver drugs under the skin instead of by IV.
Working on subcutaneous (under-the-skin) versions of several cancer drugs, making treatment faster and more comfortable for patients.
AstraZeneca’s Q1 2025 results show a strong push toward future-ready healthcare solutions. With new partnerships, acquisitions, and delivery tech, the company is setting itself up for long-term success in global markets.
Pascal Soriot, Chief Executive Officer, AstraZeneca, commented on the results:
“Our strong growth momentum has continued into 2025 and we have now entered an unprecedented catalyst-rich period for our company.
Already this year we have announced five positive Phase III study readouts, including most recently the highly anticipated DESTINYBreast09 for Enhertu, as well as SERENA-6 for camizestrant and MATTERHORN for Imfinzi; the latter two of these will feature in the ASCO 2025 plenary sessions, reflecting the significance of these data to the oncology community.
Our company is firmly committed to investing and growing in the US and we continue to benefit from our broad-based source of revenue and global manufacturing footprint, including eleven production sites in the US covering small molecules, biologics as well as cell therapy. Additionally, we have even greater US investment in manufacturing and R&D planned, leveraging our two large R&D sites in Gaithersburg MD and Cambridge MA. Overall, we are making excellent progress toward our ambition of eighty billion dollars in Total Revenue by 2030.”
AstraZeneca is Driving Sustainability with Science and Action
AstraZeneca is making major progress on its journey to a net-zero future. Through its ambitious “Ambition Zero Carbon” strategy, the company is investing $1 billion to cut emissions, switch to clean energy, and lead the healthcare sector toward a more sustainable model.
AstraZeneca plans to go carbon negative by 2030.
Scope 1 and 2 Emissions
The company has significantly reduced its direct emissions. Gross Scope 1 and 2 GHG emissions (market-based) dropped from 200,838 tonnes in 2023 to 139,594 tonnes in 2024, highlighting substantial progress in cutting emissions across its operations.
Since 2015, AstraZeneca has reduced its Scope 1 and 2 greenhouse gas emissions by an impressive 77.5%. The company remains firmly on track to meet its ambitious target of a 98% reduction in these direct emissions by 2026.
Source: AstraZeneca
Scope 3 Emissions
In 2024, AstraZeneca reported 5,897,822 tonnes of Scope 3 emissions, slightly down from 5,917,160 tonnes in 2023, showing a small but steady reduction in indirect emissions.
This progress reflects AstraZeneca’s strong commitment to climate action through clean energy use and operational efficiency.
Electric Fleets and Smarter Energy Use
63% of company vehicles are now fully electric; the goal is 100% by 2025
97% of the electricity used at company sites comes from renewable sources
Energy consumption has dropped 20% since 2015
Energy productivity has jumped 147%, showing better efficiency with less energy use
AstraZeneca’s progress shows how innovation, science, and sustainability can work hand-in-hand to build a healthier planet.
Clean Heat for Global Sites
AstraZeneca is replacing fossil fuels with clean, renewable heat at its sites around the world:
US: Partnered with Vanguard Renewables to turn food and farm waste into renewable natural gas. Will heat all US R&D and manufacturing sites by 2026.
UK: Working with Future Biogas to supply green gas to major UK sites (Macclesfield, Cambridge, Luton, Speke).
China: Partnering with China Resources Gas to bring clean heat to its Wuxi plant, aiming to cut emissions in China by up to 80%. This is the first clean heat deal of its kind in the Chinese healthcare industry.
A Focus on Circular Solutions
AstraZeneca is cutting waste and reusing more materials. Instead of throwing things away, it focuses on recycling and the smarter use of resources.
The company is reducing single-use plastics. It’s also improving packaging to be more eco-friendly. In addition, AstraZeneca is working closely with suppliers to make greener choices.
Its factories now reuse materials and recycle more. As a result, operations are cleaner and more efficient. These efforts help protect the planet and inspire change across the healthcare industry.
So, Who Won the Profit and Net-Zero Game?
Novartis outperformed financially due to blockbuster drugs and strong cost discipline, while AstraZeneca led the way on sustainability, with steeper carbon cuts and near-complete renewable energy use.
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Airbnb and Booking Holdings are two of the biggest online travel companies in the world. They help millions of people find places to stay and things to do when they travel. In 2025, both companies showed strong business results and made progress on their climate and sustainability goals.
This article looks at how each company performed in the first quarter of 2025 and compares their efforts to cut carbon emissions and reach net-zero targets.
Airbnb: Navigating Economic Headwinds
In Q1 2025, Airbnb reported revenue of $2.3 billion, marking a 6% year-over-year increase. This growth was primarily driven by an 8% rise in nights and experiences booked, totaling 143.1 million.
However, the company faced some challenges. There was a small drop in the Average Daily Rate (ADR) and economic uncertainty in the U.S. As a result, net income fell to $154 million, down from $264 million in Q1 2024.
Source: Airbnb Report
Adjusted earnings stood at $417 million, representing an 18% margin. Despite challenges, Airbnb still generated $1.8 billion in free cash flow. This kept their cash strong at $11.5 billion in cash and equivalents. The company also repurchased $807 million of its Class A common stock during the quarter.
Booking Holdings: Leveraging International Demand
Booking Holdings posted strong Q1 2025 results, with revenue reaching $4.8 billion, an 8% increase year-over-year. Gross bookings totaled $46.7 billion, up 7%, driven by 319 million room nights booked.
The company’s adjusted earnings rose 21% to $1.1 billion, with a margin of 22.9%. Adjusted earnings per share (EPS) came in at $24.81, surpassing analyst expectations. Free cash flow was robust at $3.2 billion, and the company returned $2.1 billion to shareholders through share repurchases and dividends.
Source: Booking Holdings Report
Both companies show strong financial performance. However, Booking Holdings leads in revenue and profit. It benefits from a diverse portfolio and a global presence. Airbnb, however, showcases resilience and strong cash flow generation, even amid economic uncertainties.
Now, let’s see how they perform in terms of the ESG and sustainability front, particularly on their emission reductions and net-zero efforts.
Airbnb: Advancing Toward Net-Zero by 2030
Airbnb aims to reach net-zero greenhouse gas (GHG) emissions in its global operations by 2030. This goal includes Scopes 1, 2, and some Scope 3 categories. This commitment relies on science-based targets approved by the Science-Based Targets initiative (SBTi).
Carbon Emission Reductions
Airbnb aims to reduce its absolute Scope 1 and 2 emissions by 78.4% from a 2019 baseline by 2030. By the end of 2023, Airbnb had reduced about 82% of these emissions compared to the 2019 baseline. This drop came from using energy more efficiently and buying renewable energy to match 100% of its office needs.
Source: Airbnb Sustainability Report
In 2023, Airbnb kept its San Francisco headquarters on CleanPowerSF’s SuperGreen program. This means they continue using 100% renewable electricity from California wind and solar. This accounts for about 16% of their global office electricity use.
Scope 3 Emissions
About 92% of Airbnb’s total emissions come from Scope 3 sources, mostly from suppliers. Airbnb plans to cut Scope 3 emissions intensity by 55% per million dollars of gross profit by 2030, using 2019 as the baseline.
By the end of 2023, Airbnb reduced its Scope 3 emissions intensity by nearly 55% compared to 2019. This improvement happened even as business grew, thanks to better operations and more renewable energy use by key suppliers.
Supplier Engagement
In 2023, Airbnb continued its Supplier Sustainability Program, which launched in 2022. By the end of 2023, over 80 suppliers took part. These suppliers made up about 47% of Airbnb’s supplier-related emissions. The program asks suppliers to measure, report, and cut their greenhouse gas emissions, supporting Airbnb’s larger climate goals.
Carbon Offsetting and Nature-Based Solutions
Since 2021, Airbnb has invested in high-quality nature-based carbon credits. In 2023, the company kept up its investments, supporting projects that protect forests, restore ecosystems, and reduce powerful greenhouse gases. It bought 25% more credits in 2023 than the previous year.
Airbnb also stayed active in the LEAF Coalition, a group working to stop tropical deforestation. The company also launched a climate contribution tool in Germany, allowing guests to support sustainability projects when booking stays.
Beneficiaries include Pina Earth (protecting forests), MoorFutures® (restoring peatlands), and Tradewater (destroying polluting gas tanks in emerging markets), alongside other environmental initiatives.
Booking Holdings: Comprehensive Climate Action Plan
Booking Holdings aims for net-zero GHG emissions by 2040, ten years later than Airbnb. They set interim goals to cut absolute Scope 1 and 2 emissions by 95% and Scope 3 emissions by 50% by 2030, using 2019 as a baseline. These targets have been validated by the SBTi.
Carbon Emission Reductions
By the end of 2024, Booking Holdings had reduced its absolute Scope 1 and 2 emissions by 85% compared to 2019. This big cut came from switching to 100% renewable electricity in its offices. Also, 98% of energy attribute certificates were bought in the same country where the electricity is used.
Source: Booking Sustainability Report
Scope 3 Emissions:
Scope 3 emissions, accounting for 99% of the company’s total GHG emissions, were reduced significantly by the end of 2024 compared to 2019.
Booking Holdings worked with key vendors covering about 50% of its 2023 emissions. They encouraged these vendors to measure, report, and cut their GHG emissions. This effort also aimed to enhance data quality in this area.
Source: Booking Sustainability Report
Sustainable Travel Initiatives:
Booking Holdings aims for over 50% of its bookings to be made on more sustainable offerings across its platforms by 2027. As of 2023, over 40% of bookings were made on such offerings.
Over 1.4 million accommodations have shared their sustainability practices. Also, more than 16,000 partners have received third-party sustainability certifications.
Industry Collaboration and Advocacy:
In 2023, Booking.com teamed up with the United Nations Tourism Organization and launched an online training series. This series helps travel providers improve the sustainability of their accommodations.
The company also worked with BeCause, an enterprise software provider. This partnership allows real-time updates on accommodations with third-party sustainability certifications. With it, travelers can make informed choices.
Who’s Leading the Green Getaway? A Side-by-Side Look
Data source: Company Reports
Airbnb and Booking Holdings both aim for net zero, but their approaches differ. Airbnb aims for net zero in Scopes 1 and 2 by 2030. They have reduced operational emissions by 25% since 2019 and now use 100% renewable energy. Its supplier engagement is growing, though Scope 3 data is limited.
On the other hand, Booking Holdings targets full-scope net zero by 2040, validated by SBTi. It has cut Scope 1 and 2 emissions by 41% and Scope 3 by 25%, while expanding its Sustainable Travel Badge program and engaging over 400 suppliers. Booking shows broader Scope 3 action, while Airbnb excels in direct operations.
Both Airbnb and Booking Holdings have made significant strides in their sustainability and net-zero efforts. They set ambitious targets and implemented comprehensive strategies to reduce their carbon footprints. Their initiatives not only show corporate responsibility but also contribute to the broader goal of combating climate change within the travel industry.
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The top four U.S. hyperscalers — Amazon, Google, Meta, and Microsoft — are increasing their clean energy use to balance their power-hungry operations with goals to reduce carbon emissions. Together, these companies have secured over 84 gigawatts (GW) of clean energy across 29 markets worldwide, according to S&P Global Commodity Insights. With the rising demand for cloud services and AI, these companies are also taking steps to ensure their energy comes from clean sources.
A Growing Clean Energy Footprint Across the U.S.
The clean energy capacity contracted by Amazon, Google, Meta, and Microsoft makes up more than 61% of all corporate clean energy in the U.S. technology sector. Over 64% of their clean energy is in the U.S., with much of it located in states that allow companies to buy renewable energy directly from producers.
Source: S&P Global
Here are some key facts about their clean energy footprint in the U.S.:
Their clean energy projects cover 34 states (up from 30 last year).
More than 1 GW of clean energy is linked to hyperscaler projects in 15 states.
61% of their U.S. clean energy contracts are in deregulated states.
Texas is the leading state, hosting nearly 27% of the U.S. hyperscaler clean energy capacity. The state has:
23 active datacenters and 15 more planned by hyperscalers.
86 GW of clean energy (48% of its total energy mix).
Ohio ranks second, with 4.5 GW (9.7%), and Virginia is third, with 2.8 GW (6%). Although Virginia has a large number of data centers, it doesn’t have as much clean energy as Texas, limiting its ability to expand.
By choosing states like Texas, Ohio, and Virginia, these companies can take advantage of lower energy prices, available land, and renewable energy options. This helps them scale up while meeting their clean energy goals in a cost-effective way.
A Mix of Clean Energy Sources
Solar energy is the biggest part of the clean energy mix for these companies:
The increase in nuclear energy is a major shift, as these companies now use it to provide constant, carbon-free power. Solar and wind energy can’t always produce power when needed, so companies are looking for other ways to ensure they have a steady supply of clean energy.
In addition to traditional nuclear plants, hyperscalers are showing growing interest in small modular reactors (SMRs) as a future power source for data centers. SMRs offer flexible, reliable, and carbon-free energy that can be deployed closer to data hubs, reducing transmission losses and improving energy security.
Companies like Microsoft have already signaled interest in SMRs to meet long-term clean energy needs for their expanding infrastructure.
In 2024, several major nuclear energy deals were signed, showing that nuclear power is making a comeback as a way to supply data centers with reliable, low-carbon energy.
Some important deals include:
Amazon & Talen Energy (March 2024): Amazon bought a data center powered by the Susquehanna Nuclear plant in Pennsylvania for $650 million, securing up to 960 MW of nuclear energy.
Microsoft & Constellation Energy (September 2024): Microsoft signed a 20-year agreement to restart a retired nuclear reactor. This deal shows that companies are willing to pay more for nuclear power because it is a reliable energy source.
These deals also include new ways to directly connect data centers to nearby nuclear plants, bypassing the grid and improving energy reliability.
Growing Energy Demand from AI and Cloud Computing
The demand for energy in U.S. hyperscale data centers could grow at a rate of 19% per year through 2029, reaching nearly 260 terawatt-hours (TWh), according to 451 Research. This growth is driven by AI, cloud computing, and digital services, which require more energy. As a result, these companies will need to keep buying more clean energy to meet their needs.
The rapid growth of AI, which requires huge amounts of computing power, is a big reason why energy demand is rising. In fact, AI already makes up 10% of global data center energy use, and this number could grow quickly.
Source: IEA
As AI models become more complex, companies will need even more energy to run them, pushing hyperscalers to keep finding new clean energy solutions.
The Big Four’s Race to Net Zero
All four hyperscalers are still dedicated to their bold carbon-free energy goals, with their energy demand rising fast. Their bold targets represent a clear shift in the corporate world toward full sustainability.
Amazon aims to power operations with 100% renewable energy by 2025. The company is already ahead of schedule, achieving 86% renewable energy usage globally in 2024.
Google has set a target to reach 24/7 carbon-free energy by 2030. The company wants to match every kilowatt-hour of electricity it uses with renewable energy. This will happen in real-time, 24/7.
Meta has achieved net-zero emissions for global operations. It targets net-zero emissions across its entire value chain by 2030. This shows its commitment to reducing both direct and indirect emissions.
Microsoft plans to be carbon negative by 2030, which means removing more carbon from the atmosphere than it emits.
These ambitious targets have driven innovation in clean energy. Companies are finding new ways to source, store, and use renewable energy efficiently. Hyperscalers often invest in energy storage and grid upgrades, which helps keep their operations running on clean energy.
Why Clean Energy Is the New Digital Backbone
The growth of hyperscalers and their clean energy investments is changing the way U.S. corporate energy markets work. These companies are not only transforming their own operations but are also leading the way for the wider market to adopt renewable and nuclear energy.
The shift from renewable energy being a choice to becoming a necessity is pushing the energy and tech industries to find new, sustainable solutions. As AI and cloud computing continue to grow, so will the need for more energy. This means clean energy will play a bigger role in powering these operations.
The efforts of Amazon, Google, Meta, and Microsoft are paving the way for a future where clean, reliable energy is available to support the growing digital world.
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FC Barcelona (FCB), a champion contender of La Liga for the 2024–25 season, has continued its strong lead on the field. While off the pitch, the club is emerging as a leader in sustainability, placing itself as one of the most eco-conscious football clubs.
As fans celebrate the club’s iconic moments, FC Barcelona is also making significant strides in cutting carbon emissions and moving toward its net-zero goal. Through its comprehensive climate strategy and ambitious 2021–2026 Strategic Plan, the club aims to reduce its environmental footprint and set new benchmarks for sustainability in the world’s most popular sport.
FC Barcelona’s Net Zero Efforts
From the energy consumed in stadiums to the carbon footprint of player travel, football or soccer has a significant environmental footprint. The game’s total carbon footprint is estimated at about 64 to 66 million tonnes of CO2 equivalent (tCO2e) each year.
This is roughly the same as the yearly emissions of Austria and about 60% higher than the emissions of Uruguay.
As the sport gains more attention, it’s crucial for clubs to lead by example in mitigating their environmental impact. FC Barcelona has recognized the urgency of climate action and has committed to reducing its carbon footprint. As a club with a rich history and a large fan base, Barcelona’s actions can influence not just the sport but the wider community.
FCB’s Key Climate Actions
FC Barcelona has embedded ambitious sustainability goals into its 2021–2026 Strategic Plan. The club aims to achieve Net Zero greenhouse gas emissions and Zero Waste by 2030.
These targets are driven by infrastructure upgrades, renewable energy use, and circular economy practices. Sustainability is being integrated into both on-field and off-field operations.
Key Targets and Initiatives
Net Zero Emissions by 2030 A €0.50 environmental fee is added to tickets for the Barça Immersive Tour and the future museum. Funds go toward:
Installing electric vehicle (EV) charging stations
Transitioning facilities to 100% renewable energy sources
Zero Waste by 2030 During the Spotify Camp Nou renovation:
100% of the concrete from the third-tier demolition is recycled and reused in new construction
In the 2021/22 season, FC Barcelona produced a carbon footprint of 1,190 tonnes of CO₂. This number shows how much carbon the club added to the atmosphere through its activities. Most of these emissions came from:
Using natural gas, which caused about 61% of the total emissions.
Leaking gases from cooling systems, which added about 34%.
There were no extra emissions from electricity use because all of the club’s electricity came from 100% renewable energy. If the club had used regular electricity from fossil fuels, it would have created 2,692 more tonnes of CO₂.
Source: FCB report
FCB’s Carbon Footprint Reduction Measures
The Espai Barça Project supports the club’s carbon reduction goals. It includes many upgrades for sustainable infrastructure. The revamped Spotify Camp Nou will feature 18,000 m² of solar panels, expected to generate significant renewable energy on-site.
The stadium design includes rainwater collection systems, which aim to reduce water use by 20%. They also plan to save about 40% in energy per attendee.
In terms of material recycling, a dedicated on-site plant processes both concrete and steel from the old structure. Notably, about 97% of recycled steel is used in the new stadium. This helps reduce the carbon footprint from construction materials.
FC Barcelona’s environmental work is confirmed by its renewed Biosphere certification. This aligns with the 17 UN Sustainable Development Goals (SDGs). This recognition underscores the club’s initiatives in climate change mitigation, sustainable energy use, and responsible consumption.
The club’s sustainability strategy goes beyond infrastructure. It aims to reduce travel emissions, manage energy use, and engage the community. Key measures include:
Encouraging fuel-efficient flights.
Promoting public transport and electric vehicle use for players and staff.
Partnering with renewable energy providers for all club facilities.
The club has expanded fan campaigns to promote recycling and eco-friendly matchday habits. Also, the Barça Foundation offers programs that teach young people about sustainability through sports.
Beyond the Pitch: Partnerships and Global Green Pledges
FC Barcelona also amplifies its impact through global partnerships and commitments. The club teamed up with Plastiks, a blockchain project for plastic recovery. Together, they’ve recovered more than 1 million kilograms of plastic waste. Fans engage in this initiative through digital incentives.
Additionally, FC Barcelona:
Holds United Nations Global Compact certification for environmental and social responsibility
Aligns with the EU Green Deal, supporting a carbon-neutral economy by 2050
Participates actively in the European Club Association (ECA) to reduce football’s collective carbon footprint.
The Sustainability Derby: How FCB, Madrid & Atlético Stack Up
FC Barcelona leads in climate action. However, its La Liga rivals, Real Madrid and Atlético Madrid, are also making big moves toward sustainability. Each club has its own way to cut carbon footprints, aiming to help with the global climate effort.
FC Barcelona is working hard to become more sustainable. A key part of this effort is renovating Spotify Camp Nou as part of their climate strategy. The club has reduced its carbon footprint through energy-efficient upgrades. These include the installation of solar panels at the stadium and training facilities.
Real Madrid is working hard to make the Santiago Bernabéu one of the most energy-efficient stadiums in Europe. The club is upgrading with a €900 million renovation. They are adding LED lighting, renewable energy systems, and water-saving technologies.
Moreover, Real Madrid now has an electric bus fleet for staff and players. This change cuts down on carbon emissions from travel. The club is also working towards carbon neutrality for its operations, including match days and training camps. This marks an important commitment to sustainability across all levels of its activities and to reach its 2040 net-zero goal.
Atlético Madrid has embraced sustainable infrastructure and a focus on reducing waste. It targets net-zero emissions by 2040. The club’s Metropolitano Stadium features energy-efficient lighting, geothermal systems, and renewable energy use.
Source: Atletico Madrid Report
Additionally, Atlético Madrid is also focusing on cutting plastic waste. They provide biodegradable products and invite fans to join in recycling efforts. One innovative part of its sustainability efforts is the “Play Green” third kit. Made from recycled materials, it promotes eco-friendly fashion to fans.
Atlético is also starting a carbon offset program for travel. This program aims to cut emissions from player and staff movements.
Here’s how FC Barcelona’s net-zero strategy and efforts compare with its close rivals.
Data source: Club Reports
These clubs represent some of the best examples of sustainability within the football industry, each taking concrete steps to reduce their environmental impact. FC Barcelona is a leader in circular economy efforts and renewable energy at its stadium.
Meanwhile, Real Madrid’s costly renovation of the Bernabéu sets a new benchmark for energy-efficient sports venues. Atlético Madrid shines in two key areas: infrastructure and fan engagement. They use sustainable kits and work on waste reduction efforts.
With the race for sustainability leadership heating up, these clubs push limits. They help shape the future of climate action in sports.
A Global Green Gameplan
FC Barcelona’s commitment to sustainability is part of a much larger movement within football. Football clubs around the world are realizing their impact on the environment. They are now taking steps to reduce it. This shift comes from clubs, fans, governing bodies, and sponsors. They all want greener practices in the sport.
Football’s Governing Bodies Lead the Charge
Organizations like the European Club Association (ECA), Union of European Football Associations (UEFA), and FIFA have developed strategies to guide clubs towards sustainable practices. The ECA’s Sustainability Working Group urges clubs to set emissions reduction goals and build green infrastructure.
Meanwhile, FIFA launched its Sustainability Strategy in 2019. The aim is to lessen the environmental impact of football events globally. It also seeks to improve sustainability in the sport at every level.
Leading Leagues and Clubs Promote Change
In the Premier League, clubs such as Liverpool, Arsenal, and Manchester City have embraced sustainability. The Premier League Sustainability Strategy, launched in 2023, urges all 20 clubs to reduce emissions, cut waste, and actively engage with local communities.
The Sports Positive League Table ranks clubs by their sustainability. This sparks healthy competition for improved ESG practices. Across Europe, VfL Wolfsburg in Germany became carbon neutral in 2012 and now runs on 100% renewable energy, setting a high bar for other clubs.
Ajax Amsterdam powers the Johan Cruijff Arena with solar panels, wind energy, and a 3-megawatt battery storage system. This makes it one of the greenest stadiums in Europe.
Seattle Sounders FC in the MLS is making great strides in sustainability. They are offsetting travel emissions and promoting zero-waste matchdays. The goal is to make American soccer more sustainable.
Small Clubs, Big Impact
Even smaller clubs are making a difference. In England’s League Two, Forest Green Rovers stands out as the greenest football club. They offer a vegan menu at their stadium, use solar power, and maintain an organic pitch.
These efforts show how FC Barcelona is part of a broader global trend, with clubs working together to drive sustainability in football. By sharing best practices, they are collectively making a significant impact on climate action.
FC Barcelona’s Green Strategy Sets the Pace
FC Barcelona’s climate and net-zero strategy shows how football can contribute to a more sustainable world. The club is taking real steps to cut its environmental impact. They are renovating Spotify Camp Nou, launching renewable energy projects, and forming important partnerships.
FC Barcelona faces challenges, but its efforts inspire other clubs. They show that sustainability can fit well into big sports organizations like football.
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The Voluntary Carbon Markets Integrity Initiative (VCMI) has introduced a new code to guide how companies can handle Scope 3 emissions—the indirect emissions from a company’s value chain. Called the Scope 3 Action Code of Practice, the proposal allows companies to use high-quality carbon credits to help address gaps in their Scope 3 targets.
This new approach is attracting both strong support and sharp criticism. While some welcome the extra flexibility, others warn it could delay real climate action. This article explains what the new guidance means, why it matters, and how different stakeholders are responding.
Understanding Scope 3 Emissions
Scope 3 emissions are all the indirect emissions that happen in a company’s supply chain and product use—such as emissions from suppliers, product transportation, or even customer use of a product. For most companies, Scope 3 emissions make up the largest part of their total carbon footprint.
Yet, these emissions are the hardest to control because they come from sources outside the company’s direct operations.
According to the VCMI, the global Scope 3 emissions gap—the difference between actual emissions and what they should be to stay on track with climate targets—is already about 1.4 billion tons of carbon dioxide equivalent.
That is roughly equal to the combined 2023 emissions of Germany, the United Kingdom, and Italy. This gap could grow 5x by 2030.
What the VCMI’s Scope 3 Code Proposes
The VCMI’s new Scope 3 code sets clear rules for how companies can use carbon credits to address this emissions gap. Like other frameworks, such as the Science Based Targets initiative (SBTi), the VCMI insists companies must first set science-based targets and prioritize cutting their own emissions. But VCMI goes further by allowing companies to use carbon credits sooner and in larger amounts than SBTi currently allows.
Disclose their Scope 3 emissions gap and the steps they are taking to close it.
Explain the barriers they face in reducing Scope 3 emissions, describe their strategies to overcome them, and set a clear timeline to close the gap by no later than 2040.
Limit their use of credits to no more than 25% of their total Scope 3 emissions in any given year.
The credits used must come from high-quality projects, such as select reforestation initiatives that meet strict standards. The following figure shows the steps companies must follow to comply with the new code.
Why Some Support the Code
Groups like the Environmental Defense Fund, the We Mean Business Coalition, and the U.K. government have backed the VCMI’s approach. They argue that Scope 3 emissions are so hard to reduce that companies need more flexible tools to stay on track with climate goals.
For many businesses, making deep cuts in Scope 3 emissions requires cooperation across global supply chains, which can take time. Supporters say using carbon credits can help companies show progress while they continue working on direct reductions.
In March 2025, even the Science Based Targets initiative suggested it might recognize the use of carbon credits to address ongoing emissions—although it has not finalized this proposal yet. The VCMI code could give companies clarity and a consistent framework to follow.
Why Others Are Worried
Not everyone is convinced. Many environmental groups and experts warn that allowing carbon credits to cover Scope 3 gaps could weaken corporate climate ambition and slow real emissions cuts.
Lindsay Otis Nilles, a global carbon markets expert at Carbon Market Watch, says:
“VCMI risks undermining its own credibility by allowing companies to present themselves as climate leaders while, in reality, falling behind on their commitments.”
Critics argue that allowing companies to rely on credits until 2040—a date without a clear scientific basis—could disadvantage firms that are already making tough changes to lower their emissions. If both leaders and laggards can make similar claims, it becomes harder for investors, consumers, and regulators to tell which companies are truly reducing emissions.
Thomas Day from the NewClimate Institute agrees:
“The Scope 3 Claim could mislead investors and regulators, allowing companies with ambitious-sounding targets to continue increasing their emissions in the short term.”
Others point out that carbon credits do not remove the need for direct cuts. According to Thea Lyngseth from the Environmental Coalition on Standards (ECOS),
“Investing in carbon credits for Scope 3 instead of reducing emissions at their source only delays real climate action.”
Balancing Flexibility and Integrity
The VCMI says its goal is not to undermine existing standards but to offer a practical tool that reflects real-world challenges. In response to concerns, the initiative stated:
“The intention is not to create divergence, but to offer a pragmatic, high-integrity solution to the difficulty many companies face in reducing Scope 3 emissions at the required pace.”
The VCMI also recommends that target-setting groups like the SBTi adopt a similar approach. However, with no unified global standard yet, companies could face confusion about which rules to follow.
What Comes Next?
The debate over VCMI’s Scope 3 code highlights a bigger question in corporate climate action: How can companies balance the need for fast, deep emissions cuts with the challenges of managing complex global value chains?
For now, companies interested in using the VCMI framework will need to:
Carefully document their Scope 3 emissions and reduction plans.
Make sure any credits used meet the highest quality standards.
Be transparent about how credits are used and how they plan to phase them out over time.
The VCMI’s new Scope 3 guidance adds an important option for companies grappling with indirect emissions. Whether it speeds up or slows down real climate action will depend on how it is used—and how closely its users are held accountable.
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Shell kicked off 2025 with a solid performance, reporting $5.6 billion in adjusted earnings for Q1. While this marked a 28% decline from the same period last year, mainly due to weaker oil prices and softer refining margins, it was still a big jump from the previous quarter’s $3.7 billion. But how is the oil giant managing its emissions and sustainability target?
Let’s explore…
Shell’s Focused Portfolio and Strategic Moves
Despite market headwinds, the oil major kept its financial footing strong, strengthening its energy portfolio in Q1 2025. The acquisition of Pavilion Energy furthered its global LNG trading and optimization capabilities.
At the same time, Shell exited less strategic assets, including its onshore operations in Nigeria and the Singapore Energy and Chemicals Park. These moves reflect Shell’s strategy to high-grade its portfolio and focus on higher-value assets.
Cash flow from operations came in at $9.3 billion, down from $13.2 billion in Q4 2024, reflecting a $2.7 billion working capital outflow.
Looking ahead, Shell is sticking to its disciplined investment approach with a 2025 capital expenditure plan of $20–22 billion.
Source: Shell
Segment Performance
Integrated Gas and Upstream: Delivered strong earnings, remaining Shell’s top-performing segments.
Chemicals & Products: Returned to profitability after recent struggles.
Renewables & Energy Solutions: Narrowed losses to breakeven, showing signs of improvement from Q4 2024.
Overall, Shell’s Q1 performance shows that it is staying financially disciplined, adapting to market shifts, and keeping investors front and center.
Shell Cuts Emissions, but Net Zero Still a Distant Goal
Energy major shows progress in Scope 1 and 2 emissions, but customer emissions remain stubbornly high.
Source: Shell
Scope 1 and Scope 2 Emissions
Shell’s 2023 Sustainability Report showed measurable progress in cutting emissions from its operations.
It reported 57 million tonnes of CO₂ equivalent in combined Scope 1 and 2 emissions.
It means it’s down 2% from 2022 and 31% lower than its 2016 baseline. This includes emissions from its oil refineries, LNG facilities, and other assets it operates globally.
Shell has committed to reducing 50% of its Scope 1 and 2 emissions by 2030, using 2016 as the baseline. Key actions include shuttering high-emitting sites, improving energy efficiency, and expanding its use of renewable power.
Scope 3 Emissions
Shell’s customer-driven Scope 3 emissions, which account for nearly 90% of Shell’s total carbon footprint, are significantly high. In 2023, these emissions totaled 1,147 million tonnes of CO₂ equivalent, only slightly below 2022 levels.
Last year in March, Shell set a new goal to cut emissions from the use of its oil products by 15–20% by 2030, using 2021 as the baseline. This supports the EU’s Fit for 55 plan and efforts to clean up transport. However, critics say the goal falls short because it excludes emissions from natural gas and LNG.
Other important milestones to reach its net-zero target include:
Eliminate routine flaring of natural gas by 2025 to curb carbon emissions.
Reduce methane emissions intensity below 0.2% and reach near-zero methane emissions by 2030.
From Oil Giant to Clean Energy Player
Shell is reducing its carbon footprint by closing or selling off older, high-emission refineries and oil assets. It’s also upgrading its infrastructure by swapping diesel for electric systems and using smart tools to boost energy efficiency.
Source: Shell
Investing in Solar and Wind
Shell is going big on renewables. It’s installing solar panels and wind turbines across its operations to power sites with clean electricity. In some regions, renewables now meet all their electricity needs, slashing Scope 2 emissions.
From U.S. solar parks to offshore wind farms in Europe, Shell is scaling up its clean energy game. These projects not only cut emissions but also help power green hydrogen production.
Trapping Emissions with CCS
For industries that are hard to decarbonize, like chemicals and refining, Shell is betting on carbon capture and storage (CCS). It’s building large CCS hubs in Europe and North America to trap CO₂ and store it safely underground.
Shell is a key player in Europe’s biggest CCS projects, including Northern Lights (Norway), Porthos (Netherlands), and Acorn (UK). These hubs will store emissions from heavy industry in underground reservoirs.
From Offsets to Removals
Shell has relied on carbon credits in the past, but it’s now pivoting to tech-based removals like direct air capture. These newer methods offer more reliable and permanent carbon removal.
Changing the Fuel Mix
Shell is shifting its product line, too. It’s moving away from oil and focusing more on its low-carbon fuels business, natural gas, biofuels, and hydrogen.
It supported the EU’s renewable hydrogen rules and backed the U.S. Inflation Reduction Act, which funds CCS and clean fuels. Additionally, it is also working with India and Canada to build hydrogen infrastructure and CO₂ transport systems.
In the Netherlands, Shell is building Holland Hydrogen 1, Europe’s largest green hydrogen plant, powered by offshore wind. When it launches in 2025, it could be a blueprint for clean hydrogen at scale.
The Takeaways from Shell’s Sustainability Snapshot:
Increasing the proportion of gas and LNG in hydrocarbon sales
Rising sales of low-carbon fuels, such as biofuels
Growing our power sales, including those of renewable power
Reducing sales of oil products
Developing and deploying more CCS
Using High-quality carbon credits, such as nature-based solutions, to offset remaining carbon emissions.
Shell is moving from being an oil major to an energy transition leader. By cutting emissions, scaling renewables, and pushing new tech like hydrogen and CCS, it’s trying to future-proof its business and the planet.
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In Q1 2025, TotalEnergies earned $4.2 billion in adjusted net income and $7.0 billion in cash flow from operations. Revenue dropped to $47.89 billion from $51.88 billion a year earlier. However, the company held firm because of strong oil and gas output and steady LNG profits, and more interestingly, its carbon credits investment.
The report revealed that production rose 4% year-over-year, averaging 2.55–2.57 million barrels of oil equivalent per day. New output from Brazil, the U.S., Malaysia, Argentina, and Denmark helped drive this growth. Gas prices stayed high, partly balancing weaker oil prices.
Source: TotalEnergies
Power and LNG Boost TotalEnergies Amid Refining Woes
The LNG business posted $1.3 billion in adjusted net operating income. While LNG trading met expectations, gas trading struggled due to Europe’s volatile markets and geopolitical tensions.
Power operations also grew. The segment generated over $500 million in income and $600 million in cash flow. Key deals, like acquiring Germany’s VSB and investing in battery storage, supported this growth.
Still, downstream operations faced headwinds. Weak refining margins and issues at French and U.S. facilities cut into profits. Petrochemical and biofuel margins in Europe also declined, adding pressure.
TotalEnergies spent $2 million on carbon credits in Q1 2025. That’s double what it spent in Q1 2024. This massive spending aims to cut emissions and reach its net-zero target by 2050.
Robust Backing for Nature-Based Projects
A significant segment of its investment supports nature-based solutions like forest protection, regenerative farming, and wetland conservation. By the end of last year, TotalEnergies had collected 13.7 million verified carbon credits. Each year, the company plans to invest $100 million in carbon projects.
Between 2025 and 2030, TotalEnergies will build a stock of 50 million carbon credits.
These projects can potentially deliver at least 5 million metric tons of CO₂e credits annually by 2030.
From 2030, the company will start using high-quality carbon credits to offset its remaining Scope 1 and 2 emissions.
The aim is to build a strong portfolio of trusted projects that support global rules and ensure the credits are real and long-lasting. Additionally, the company expects these projects to bring long-term environmental and social benefits.
It expects to reach 37 million verified credits by 2030 and 53 million by 2050. These projects could also generate $770 million for local communities.
Source: TotalEnergies
$100 M Deal with Anew Climate and Aurora Sustainable Lands
TotalEnergies signed a $100 million deal with Anew Climate and Aurora Sustainable Lands last year. The project protects 300,000 hectares of forests across 10 U.S. states—Arkansas, Florida, Kentucky, Louisiana, Michigan, Minnesota, New York, Virginia, West Virginia, and Wisconsin.
This partnership supports sustainable forest management and boosts the forests’ ability to absorb carbon. It also helps local communities by improving land use and preventing environmental damage. The carbon credits generated help offset the company’s remaining emissions.
Last year, the LNG giant launched the “Our 5 Levers for Sustainable Change” initiative. The goal was to engage all employees in reducing emissions by boosting energy efficiency and adopting low-carbon technologies across its operations.
GHG Emissions Fell in 2024
The company cut emissions from operated sites by more than 36% in 2024 compared to 2015. Notably, over 200 emission-reduction projects helped slash 1.3 million tons of CO₂e.
However, recently the company raised its 2025 emissions goal to 37 Mt CO₂e per year. It aims to cut net Scope 1+2 emissions by 40% by 2030 (vs. 2015 levels). This also includes using 5 million carbon credits from nature-based projects, as explained before. Subsequently, these offsets will be used only for residual emissions from 2030 and consumed gradually at about 10% per year.
By end-2024, TotalEnergies had invested around $750 million in emissions reduction. These investments save 1.5 Mt CO₂e each year and cut energy costs by over $100 million annually.
Source: TotalEnergies
However, emissions from flexible power generation rose slightly. This happened due to the addition of combined-cycle gas turbines (CCGTs) in the U.S. and U.K., which support TotalEnergies’ low-carbon electricity expansion.
Still, overall emissions dropped 25% from 2015 levels.
The carbon intensity of upstream oil and gas assets also fell from 21 kg CO₂e/boe in 2015 to 17 kg CO₂e/boe in 2024.
All these figures make TotalEnergies one of the top industry performers.
Scope 3 and Scope 4 Emissions
In 2024, TotalEnergies helped reduce global emissions by 65 million tonnes of CO₂e through LNG sales, as many customers replaced coal with gas for power generation. Although gas increases Scope 3 emissions, it enables cleaner energy and avoids more emissions overall. These are classified as Scope 4 emissions.
The company also avoided 18 million tonnes of CO₂e in 2024 and is aiming for 150 million tonnes of emissions by 2030. This makes 90 Mt from LNG and 60 Mt from renewables while keeping Scope 3 emissions below 400 Mt.
Source: TotalEnergies
Methane Emissions Drop Drastically
Methane emissions dropped from 64 kt in 2020 to 29 kt in 2024—a 55% cut. TotalEnergies beat its 2025 target early and now aims for a 60% cut by 2025, and an 80% cut by 2030 compared to 2020.
Source: TotalEnergies
Digital Tools Boost Efficiency
The company is using digital tools to cut emissions smartly. In Exploration & Production, the ForCFR app links carbon forecasts with oil and gas output. In Angola, it helped cut 179 kt CO₂e annually by optimizing well operations.
Another example is: at the Normandy, Donges, and Feyzin refineries, the CarbOptim app tracks energy use in real-time and helps cut steam and energy waste.
2025 Carbon Intensity Reduction Target
TotalEnergies has raised its 2025 carbon intensity reduction target from 15% to 17%, aiming for a 25% emission cut by 2030. That means delivering the same energy with fewer emissions, or more energy with the same carbon footprint. Most of the progress will come from boosting clean electricity, cutting oil use, and growing gas and bioenergy.
Joins Google for Clean Energy
In January 2025, TotalEnergies teamed up with Google Europe to help power its Dutch data centers with 24/7 clean electricity by 2030. They’ll combine Google’s green power deals and add battery storage to handle renewables’ ups and downs. Similar deals are already in place with U.S. tech firms
Switch to Low-Carbon Power by 2025
TotalEnergies aims to power all its refining and chemical sites in Europe and the U.S. with 100% low-carbon electricity by 2025. This target will be achieved through initiatives like the Go Green project in Port Arthur, Texas.
Additionally, last year it achieved 26 GW of gross installed renewable electricity capacity, targeting 35 GW by 2025 and reaching 100 GW by 2030.
With this progress, TotalEnergies plans to become one of the top five global producers of renewable electricity (wind and solar), excluding Chinese companies.
In April 2024, TotalEnergies started the Marsa LNG project in Oman. The plant will run on power from a 300 MW solar farm and emit less than 3 kg CO₂ per barrel of oil equivalent.
Also, the company approved the GranMorgu oil project in Suriname.
This all-electric project will use advanced tech to cut emissions below 16 kg CO₂ per barrel of oil equivalent.
Additionally, it aims to:
Become a key producer of Sustainable Aviation Fuel (SAF), targeting 1.5 million tonnes annually by 2030.
In 2024, the company’s gross biomethane production capacity rose to 1.2 TWh per year
Hydrogen Plans Take Shape
This is part of its long-term plan to decarbonize its operations and energy products.
TotalEnergies is expanding its clean hydrogen portfolio with multiple projects across Europe. In France, it’s building biohydrogen units at La Mède and Grandpuits refineries with Air Liquide, targeting annual CO₂ cuts of 130,000 and 150,000 tonnes respectively.
In the Netherlands, a 250 MW offshore wind-powered electrolyser in Zeeland will supply 30,000 tonnes of green hydrogen from 2029, reducing refinery emissions by 300,000 tonnes yearly.
Furthermore, tolling agreements in Belgium and France will see Air Liquide operate electrolysers in Antwerp (130 MW) and Normandy (100 MW), each producing 15,000 tonnes of hydrogen annually and cutting 150,000 tonnes of CO₂ per site by 2027.
Despite market challenges, TotalEnergies continues to invest in clean energy and climate action. Its rising carbon credit purchases highlight how big energy players are using voluntary carbon markets to decarbonize. Thus, its role for a lower-carbon future is of utmost significance.
