Baidu to Become Carbon Neutral by 2030

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On June 22, Baidu [BIDU:US] announced that the company plans to become carbon neutral by 2030, as reported by Caixin Global on June 23. To achieve its target, Baidu plans to increase the use of renewable energy to decrease the company's power usage effectiveness (PUE), the ratio of a data center’s power usage to the total energy used by the center’s IT devices. At present, the company's data centers are considered to be a significant source of carbon emissions as it requires a tremendous amount of electricity to cool the facility. In addition to increasing the use of renewable energy, Baidu will also build new data centers in areas rich with renewable energy, developing green supply chains with its partners, and extending its smart transportation solutions.

Baidu is not the first Chinese tech giant to announce its environmental goals to support Beijing's target to reach carbon neutrality by 2060. In April, Ant Group disclosed its carbon emissions reduction plans and targets to become carbon neutral by 2030. Specifically, Ant Group will increase the proportion of renewable energy the company uses on its electricity consumption by 30% for the upcoming five years. Meanwhile, Meituan [3690:HK] recently launched the Meituan Green Tech Fund, a fund that will promote the research, development, and application of low-carbon technology in fields related to packaging, recycling, etc. Moreover, Tencent [0700:HK] and Huawei have also shared their plans to contribute to Beijing's environmental goals.

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