On the same day the United Nation’s COP26 climate summit kicked off,
“Our net-zero goal and commitment ... reflects our belief that environmental sustainability is absolutely imperative, with significant social and economic benefits that require collective action and leadership from Qualcomm and other corporate citizens,” said Cristiano Amon, Qualcomm’s president and CEO.
The announcement of the initiative sent QCOM shares one and a half percent higher on the day to close at $134.81.
The company said it has set three long-term GHG reduction goals, which supplement its existing 2025 GHG reduction strategy:
To reduce absolute Scope 1 and 2 GHG emissions by 50% by 2030 from 2020 base year.
To reduce absolute Scope 3 GHG emissions by 25% by 2030 from 2020 base year.
To reach net-zero global emissions for Scopes 1, 2 and 3 by 2040.
Scope 1 GHG emissions cover direct emissions from owned or controlled sources. Scope 2 covers indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the company. Scope 3 includes all other indirect emissions that occur in a company’s value chain.
Qualcomm said it’s already working towards achieving these long-term goals by purchasing 100% renewable energy for its San Diego headquarters.
The company’s strategy also includes transitioning to renewable energy via long-term Power Purchase Agreements (PPAs), “decarbonizing its operations” and using a minimal amount of Renewable Energy Credits (RECs) and carbon offsets for residual emissions.
“The wireless industry and cellular connectivity are connecting everyone and everything which is creating efficiencies, reducing power consumption of computing and consumer electronics and helping close the digital divide,” the company stated in a release announcing the initiative.
“At Qualcomm, our technologies seek to offer innovative ways to maximize the performance of devices, while reducing the amount of energy they use,” the company blog stated.
Qualcomm’s market-leading Snapdragon platforms, which power a wide range of devices, are industry-leading in their power consumption optimization, enabling longer battery life and increasing the time the device can be in use before recharging.
“5G technologies and products will be instrumental in driving an environmentally sustainable future. We’re working with our partners and customers to reduce emissions footprints, conserve resources and harness the sustainability benefits of 5G globally,” Amon said.
Qualcomm recently released a report which highlights the economic and sustainability benefits of 5G with a call-to-action for joint efforts by industry and government to accelerate 5G adoption.
Create as many as 300,000 new green jobs by 2030;
Enable the reduction of 374 million metric tons of GHG emissions — equivalent to taking 81 million passenger vehicles off U.S. roads for one year;
Save 410 billion gallons of water – the equivalent of water usage in more than four million homes;
Reduce pesticide usage by 50% with the use of unmanned aerial vehicles.
One industry watcher, Jeramy Johnson at Android Central, hailed the move by the 5G chipmaker, praising Qualcomm’s bold leadership while jokingly suggesting 5G now stands for “green, green, green, green, green”
“Tackling climate change and runaway emissions is a global problem, and it’s one that Qualcomm thinks it has a significant role to play as the leading company powering the best sustainable and repairable phones as well as other key industries with its latest and greatest high-end Snapdragon SOCs,” Johnson said.
CEO: Cristiano Amon
Revenue: $23.5 billion (2020)
STOCK: QCOM on Nasdaq
Notable: Company says it wants to create 300,000 ‘green’ jobs by 2030
Contact: (858) 587-1121