Apple, Goldman among companies in US$140 billion climate pledge

WASHINGTON — Executives from 13 major US corporations will announce today (July 27) at least US$140 billion (S$192 billion) in new investments to decrease their carbon footprints as part of a White House initiative to recruit private commitments ahead of a United Nations (UN) climate-change summit later this year in Paris.

Companies including Apple, Berkshire Hathaway Energy Company, and Goldman Sachs Group will join Secretary of State John Kerry and top administration officials at the White House for the announcement. In addition to pledges to cut emissions, provide financing to environmentally-focused companies, and reduce water consumption, the companies have said they will produce 1,600 megawatts of new, renewable energy - enough to power nearly 1.3 million homes. The White House said in a statement that it expects to announce a second round of similar pledges later this fall from additional companies.

The commitments are being announced as President Barack Obama is looking to build momentum toward a legacy-defining global climate accord in Paris. In addition to company-specific commitments, the corporate leaders today will signal their support for a strong climate agreement out of the UN talks. The administration is using the pledges to set an example for companies to find ways to eliminate their carbon emissions.

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“As the world looks toward global climate negotiations in Paris this December, American leadership at all levels will be essential,” the White House said in a fact sheet detailing the announcement.

The Wall Street Journal reported the commitments earlier.

The administration’s actions are pushing the issue into the 2016 presidential debate. Ms Hillary Clinton, the front-runner for the Democratic nomination, released an energy strategy saying she would both defend and go beyond Mr Obama’s efforts. Republican candidates have criticised the administration’s initiatives as costly to the economy and unnecessary.

Among the pledges, aluminium manufacturer Alcoa has agreed to reduce emissions by 50 per cent from its 2005 levels, while agricultural giant Cargill says 18 per cent of its total energy use will come from renewable sources.

Coca-Cola Company said it will drive down the carbon footprint of its beverage production by 25 per cent over the next five years, while Google says it plans to triple its purchases of renewable energy over the next decade. Berkshire Hathaway says it plans to invest up to an additional US$15 billion in the construction and operation of renewable energy generators, while Bank of America Corporation says it will increase its environmental business initiative by US$75 billion over the next decade, according to the White House.

Other participating firms include Wal-Mart Stores, United Parcel Service, PepsiCo, Microsoft Corporation, General Motors.

The corporate commitments won’t be the administration’s only major climate announcement in the next few weeks. The Environmental Protection Agency is set to present final regulations that aim to reduce carbon emissions from power plants by 30 per cent from 2005 levels by 2030 later this week.

While visiting Kenya over the weekend, Mr Obama repeatedly praised the country for its efforts to address climate change, saying its efforts for reduce emissions “has put it in the position of being a leader on the continent”. And next month, the president will travel to Alaska for an international summit on Arctic climate issues. BLOOMBERG