PayPal Pledges to Reach Net-Zero Greenhouse Emissions by 2040

Jenny Surane (Bloomberg) -- PayPal Holdings Inc. said it would achieve net-zero greenhouse-gas emissions by 2040 as it looks for ways financial technology can prevent climate change.

The payments giant also vowed to use renewable-energy sources to power its data centers by 2023, and pledged to reduce its operational greenhouse gases by 25% by 2025. The promises are part of PayPal’s commitment to help limit global warming to no more than 1.5 degrees Celsius, the most ambitious goal of the Paris Agreement.

“Our climate action goes beyond our science-based targets,” Sri Shivananda, PayPal’s chief technology officer, said in an email. “As we continue to develop more effective and efficient payment solutions, we have an opportunity to identify financial-inclusion solutions that build greater climate resilience and maximize outcomes for underserved communities hit hardest by climate-related extreme events.”

PayPal is joining a chorus of companies including Amazon.com Inc. and Best Buy Co. that have vowed to achieve net-zero greenhouse gas emissions by 2040. The moves come as investors and customers push for companies to find ways to lower their contributions to climate change.

PayPal said it has also been financing projects in communities where it has significant operations to address the “unavoidable climate pollution” they generate. The firm, for example, has been helping a foundation restore historically Black cemeteries in Richmond, Virginia, as a way to offset its greenhouse gas emissions.

“It will take us all to succeed at creating a climate-neutral economy,” Shivananda said. “We will lead on researching opportunities and bringing in partners for collaboration to advance innovative fintech solutions that prioritize climate and financial-health impact.”