PayPal commits to carbon neutrality by 2040

The FinTech giant aims to use 100% renewable energy to run its data centres by 2023

PayPal is used by more than 375 million consumers and merchants in over 200 markets. AP

PayPal, which operates one of the largest ecommerce platforms globally, plans to become carbon neutral by 2040.

The FinTech company aims to use 100 per cent renewable energy to run all its data centres in the next two years and reduce almost 25 per cent of greenhouse gas emissions from its operations by 2025.

“We are focused on mobilising resources to reduce and abate our greenhouse gas emissions as rapidly as possible … we are already making tangible progress towards these targets,” Sri Shivananda, the company’s chief technology officer, said.

Last year, PayPal matched 98 per cent of the energy in its data centres with renewable generation, up from 65 per cent in 2019.

Its greenhouse gas compensation strategy is focused on financing projects in geographies where the company has a “significant operational presence, supporting vulnerable communities”, said Mr Shivananda.

“Achieving climate stability is vital to fulfilling our mission to drive financial health and inclusion for all global citizens … [it] is critical when it comes to managing our impact, mobilising our workforce and driving innovation on our platform,” he added.

Failure to decarbonise the global economy could result in more than 100 million people being pushed into extreme poverty by 2030 and more than one million people dying from climate-related disasters each year, according to World Bank figures.

In September, PayPal joined the Business Ambition for 1.5C, a movement to ensure that global temperature does not rise more than 1.5 degrees Celsius. It also signed on with thousands of other organisations in the America Is All In movement to continue supporting climate action to meet the Paris Climate Agreement.

The California-based company, which last month started allowing its customers to use cryptocurrencies to pay for purchases at online merchants, is also exploring new areas in climate innovation and FinTech.

“We are beginning to research the intersections of digital financial inclusion and climate resilience to identify FinTech solutions that will help us build a climate-neutral and more equitable global economy,” added Mr Shivananda.

Top tech companies have rolled out various green initiatives in the past few months.

In June, Amazon launched a Climate Pledge Fund, with an initial funding of $2 billion, to invest in sustainable technologies and services. The new investment programme will help Amazon become carbon neutral by 2040.

In September, Google pledged to run all its campuses and data centres on carbon-free energy by 2030.