Google’s ‘Carbon Footprint for Google Ads’ responds to global, consumer pressures

The news: Google rolled out Carbon Footprints for Google Ads to track emissions on Search Ads 360, Campaign Manager 360, Display & Video 360, and Google Ads.

• Google will provide a breakdown of scope 1 emissions, which companies control directly; scope 2 emissions, which companies cause indirectly, including market and location-based emissions; and scope 3 emissions, which are produced not by companies or their assets but by assets up and down the value chain that companies are indirectly responsible for.
• Each report is aligned with global standards, including the Ad Net Zero Global Media Sustainability Framework and the Greenhouse Gas Protocol. The reports offer advertisers insights based on first-party data collected by Google.

Current testers include Carwow, L’Oréal, and LVMH, per Google’s Director of Sustainability for Europe, the Middle East, and Africa Adam Elman.

Why the change? Google is responding to global regulatory and consumer pressure to invest in sustainability.

• Governments across geographies are emphasizing environmental, social and governance (ESG) regulations: The EU requires companies to report on sustainability and how ESG practices influence business decisions through its Corporate Sustainability Reporting Directive.
• Consumers also value sustainability: 78% of US consumers said that sustainability is at least somewhat important to them, and 34% of consumers worldwide have switched brands because of sustainability practices.

What other companies are doing: Google’s carbon footprint reports are part of a broader trend of companies committing to sustainability.

Microsoft has worked toward carbon neutrality since 2012 and pledged to be carbon negative by 2030 for all three scopes, while Apple wants to be carbon neutral across its value chain by 2030.

Yes, but: Sustainability remains important globally, but it’s facing some challenges in the US. While advertisers generally value sustainability, President Donald Trump’s step back from climate change initiatives could cause some brands to reconsider, though how widespread this change will be remains to be seen.

However, Google’s new reports indicate that many brands are willing to pursue sustainability, even if the political pressures start trickling down to brands—and without more concrete evidence that some brands are stepping back, it’s difficult to determine whether Trump’s policies will have a measurable impact on how businesses approach sustainability.

Our take: Google’s carbon footprint reports could be a valuable tool for advertisers looking to adhere to company values while meeting consumer expectations.

The reports emphasize the need for advertisers globally to prioritize the environmental impact of campaigns and provide tools to better integrate sustainability into marketing practices. Google hopes to make it likelier that brands will reach net-zero goals—and easier for brands to show they are taking action on ESG goals.