Microsoft Corp. (MSFT) has announced new steps to become carbon negative by 2030.
The tech giant stated that it has launched a coalition called Transform to Net Zero, which involves eight other corporations that will join its efforts to “accelerate business action toward a net-zero carbon economy.” Group members include A.P. Moeller – Maersk, Danone, Mercedes-Benz AG, Natura & Co., Nike (NKE), Starbucks (SBUX), Unilever, and Wipro.
In a July 22 press release, Microsoft outlined a series of steps saying that “members will work to enable all businesses to achieve net-zero emissions.” Microsoft says that the members of the group will each work to expand the plan to their respective business units. Earlier this year, Microsoft announced an initial goal to cut carbon emissions for its supply and value chains by calling for a reduction in direct emissions and energy-related emissions to zero by 2025.
On January 16, Microsoft President Brad Smith said, “By 2030 Microsoft will be carbon negative, and by 2050 Microsoft will remove from the environment all the carbon the company has emitted either directly or by electrical consumption since it was founded in 1975.”
Recently, on July 21, Apple Inc. (AAPL) announced its own 10-year environmental plan to reduce emissions by 75% while the remaining 25% would be for developing innovative carbon removal. Apple says that it will expand the 10-year plan to all of its divisions, which includes every device that it produces.
Microsoft states that it has already started to remove 1 million metric tons of carbon from the environment this fiscal year using natural solutions and technological methods that are net negative.
Overall, 25 analysts assign Buy ratings, 1 Hold rating, and no Sell ratings, giving MSFT a Strong Buy Street consensus. The average analyst price target stands at $220.70, suggesting 5% upside potential, with shares already up 34% year-to-date. (See Microsoft stock analysis on TipRanks).