KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
The rapid expansion of artificial intelligence (AI) by tech giants such as Amazon, Microsoft, and Meta is coming at a significant environmental cost, with these companies allegedly obscuring the true carbon footprint of their operations. According to a Bloomberg Green analysis, these companies are using unbundled renewable energy certificates (RECs) to falsely claim reductions in emissions, creating a misleading picture of their environmental impact.
Key Takeaways:
Misleading Carbon Footprint Reporting: Amazon, Microsoft, and Meta are reportedly using unbundled RECs to claim emission reductions that do not reflect actual decreases in carbon output. These RECs allow companies to count energy from renewable sources, even when the actual electricity they use may come from fossil fuels. This practice has led to significant underreporting of emissions, with Amazon’s actual 2022 emissions potentially being 8.5 million metric tons higher than reported, for instance.
Impact of AI on Energy Consumption: The increasing integration of AI in tech companies' operations has driven up energy consumption, contributing to higher emissions. However, firms like Microsoft attribute rising emissions to the carbon-intensive materials used in building data centers rather than the energy demands of AI. Critics argue that the reliance on unbundled RECs masks the true environmental impact of AI-driven energy use, making it harder for consumers and investors to understand the full extent of these companies’ carbon footprints.
Need for Updated Carbon Accounting Standards: The current carbon accounting rules, which permit the use of unbundled RECs, are outdated and do not accurately reflect actual emissions reductions. Experts and organizations are pushing for a revision of these standards to ensure that companies’ reported emissions align more closely with their real-world environmental impact. Google has already phased out its use of unbundled RECs and advocates for more stringent reporting standards, recognizing that existing methods are insufficient for achieving true sustainability goals.
In summary, the reliance on unbundled RECs by tech companies like Amazon, Microsoft, and Meta is creating a misleading narrative around their environmental sustainability efforts, particularly in the context of their growing AI operations. As calls for more accurate carbon accounting standards grow, the true environmental cost of AI expansion may soon come to light, prompting changes in how companies report and manage their carbon footprints.
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