“…Dell counts the emissions produced by its boilers and company-owned cars, its buildings’ electricity use, and its employees’ business air travel…”

“…it is claiming carbon neutrality mostly by purchasing environmental “credits.” These are financial instruments that bankroll environmental improvements made by others, such as running wind turbines or planting forests. Dell reasons that these credits cancel out the bulk of its carbon footprint…”

“…Dell’s program is widely praised by environmental groups as one of the most comprehensive attempts by a major corporation to combat climate change. The strategy mirrors the one that scientists and politicians are now prescribing: boosting energy-efficiency, funding renewable energy and buying carbon credits…”

 http://online.wsj.com/article/SB123059880241541259.html?mod=googlenews_wsj#printMode

 

 Dell’s Carbon Footprint

 

 

The term may suggest a company has reengineered itself so that it’s no longer adding to the carbon dioxide and other greenhouse gases scientists say are contributing to climate change. The experience of Dell, one of the few multinational corporations to claim it already has achieved carbon neutrality, shows the reality often falls short of that ideal.

The amount of emissions Dell has committed to neutralize is known in the environmental industry as the company’s “carbon footprint.” But there is no universally accepted standard for what a footprint should include, and so every company calculates its differently. Dell counts the emissions produced by its boilers and company-owned cars, its buildings’ electricity use, and its employees’ business air travel.

In fact, that’s only a small fraction of all the emissions associated with Dell. The footprint doesn’t include the oil used by Dell’s suppliers to make its computer parts, the diesel and jet fuel used to ship those computers around the world, or the coal-fired electricity used to run them.

Dell’s announcement that it had achieved carbon neutrality didn’t go into these details. But in an interview, Dell officials estimate that the emissions produced by its suppliers and consumers each amount to about 10 times the footprint Dell has defined for itself. That means the company is only neutralizing about 5% of the greenhouse gases that go into the making and use of its products.

Moreover, while Dell is improving its energy efficiency, it is claiming carbon neutrality mostly by purchasing environmental “credits.” These are financial instruments that bankroll environmental improvements made by others, such as running wind turbines or planting forests. Dell reasons that these credits cancel out the bulk of its carbon footprint.

Yet some of those improvements would have occurred whether or not Dell invested in them, according to some of the companies involved. That suggests Dell isn’t ridding the atmosphere of as much pollution as it claims.

Regarding the environmental credits Dell has bought, Mr. Parker says they “meet the highest standards” that currently exist.

Indeed, Dell’s program is widely praised by environmental groups as one of the most comprehensive attempts by a major corporation to combat climate change. The strategy mirrors the one that scientists and politicians are now prescribing: boosting energy-efficiency, funding renewable energy and buying carbon credits.