The hidden environmental costs of tech giants’ AI investments
Should investors demand these companies disclose their energy consumption to calculate Scope 3 greenhouse gas emissions?
GLOBAL technology leaders including Alphabet, Amazon, Apple, Meta and Microsoft are increasingly integrating artificial intelligence (AI) technologies into their product offerings.
The substantial energy consumption associated with AI training and operation has raised concerns about the environmental impact, particularly regarding greenhouse gas (GHG) emissions. Should investors demand these companies disclose their energy consumption to calculate Scope 3 GHG emissions?
From a sustainable investor’s perspective, the carbon emissions of a company can have implications on its discount factor (that is, cost of capital).
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