Tech understates emissions with creative accounting, true environmental impact unclear.

TLDR:

• Global tech companies may be underreporting their carbon emissions through creative accounting.
• Location-based emissions show a much higher carbon footprint compared to official declarations.

In a recent report by The Guardian, it was revealed that tech companies may be significantly underreporting their carbon emissions through what can be described as “creative accounting.” The industry standards for disclosure may allow these companies to systematically understate their carbon footprint, giving a misleading picture of their actual impact on the environment.

The report compared official declarations of carbon emissions, which include purchased offsets, with location-based emissions. Location-based emissions are a standard metric that more accurately represents datacenter output, and the conclusion drawn was that real emissions are in fact much higher than what is being reported. This discrepancy is mainly due to the use of “renewable energy certificates” which may not accurately depict the true carbon output of the tech sector.

As the tech industry continues to grow and expand, it is crucial for these companies to accurately report their carbon emissions and take responsibility for their environmental impact. By using misleading accounting methods, these companies are potentially contributing to the worsening climate crisis without being held accountable for their actions.