Reducing Carbon Emissions and Waste at Comcast
Written by: Korin Carney, James Mahone, and Andres Celedon
Introduction
Comcast Corporation (“Comcast”; NASDAQ: CMCSA) is not the first company you may think of as being impacted by climate change. As a vertically integrated and global leader in the media and entertainment industries, Comcast is a large consumer of energy for its operations from powering data centers, theme parks, movie and television show productions, and a fiber network resulting in two thirds of its Scope 1 and 2 emissions, with additional emissions coming from the fleet needed to construct and maintain the network. Comcast believes that climate change – for various reasons – will drive up the cost of fossil fuels, thus leading to a substantial increase cost in operations and impacting the bottom line. Additionally, Comcast sees other sustainability efforts “Storm-Ready Wi-Fi” as a market differentiator as the increased rate of severe storms are more likely to take out utility infrastructure.
Measuring and Reporting Emissions
To ensure transparency and hold Comcast accountable for their sustainability commitments and targets, current data is reported using the Greenhouse Gas (GHG) Protocol and the Sustainability Accounting Standards (SASB). GHG helps to establish a standardized framework for public and private companies to measure and manage greenhouse gas emissions. In 2016, 92% of Fortune 500 companies used GHG directly or indirectly for carbon emission disclosure according to the GHG website. As for SASB standards, they were founded in 2011, and are geared towards providing industry specific guidance on sustainability information. Both organizations are vital partners in helping Comcast translate their actions into numbers. Also, to help with accuracy and completeness, Comcast utilized independent auditor Deloitte & Touche LLP to review their 2023 Carbon Footprint Data Report. The auditors found no assertions that required management modification during their assessment.
Current Efforts
Comcast is making significant strides towards achieving carbon neutrality by 2035 through various initiatives focused on renewable energy adoption, electrifying their fleet, implementing sustainable production practices, and designing eco-friendly product packaging.
To power their operations with clean energy, Comcast has partnered with renewable energy providers like Foard City Wind Farm in Texas and Gravel Pit Solar in New England. These partnerships enable Comcast to purchase wind and solar electricity, respectively, to fuel their facilities and network operations. By embracing renewables, Comcast aims to reduce their reliance on fossil fuels and lower their greenhouse gas emissions.
Furthermore, Comcast is transitioning 30% of its commercial fleet to electric vehicles (EVs), contributing to a reduction in carbon emissions associated with transportation. This move aligns with their commitment to sustainable practices across all aspects of their business.
In addition to addressing operational emissions, Comcast is also focusing on sustainable production practices within NBCUniversal. Their Sustainable Production Program, launched in 2009, integrates environmental best practices into film and TV production processes. Initiatives include recycling and composting, donating leftover materials to local nonprofits, using eco-friendly materials like FSCC-Certified plywood, and adopting fuel-efficient vehicles and LED lighting on set.
Moreover, Comcast’s Xfinity offers Storm-Ready Wi-Fi, a backup connectivity solution made of 65% recycled plastic, which keeps customers online during outages using cellular backup. This product not only ensures reliable service but also demonstrates Comcast’s commitment to sustainability in product design and functionality.
“These initiatives have improved our business and allowed us to better serve our customers all while creating a greener, cleaner future.”
Sara Cronenwett, SVP of Corporate Strategy and Environment Sustainability at Comcast
Comcast’s dedication to sustainability extends to product packaging as well. The Xfinity Eco Capsule, awarded for its outstanding design, features a modular design made of bamboo, paper, sugarcane, and soy ink. The inclusion of Braille enhances accessibility, while messaging encourages users to reuse the capsule creatively, promoting a circular economy mindset.
Overall, Comcast’s multifaceted approach to reducing greenhouse gas emissions showcases their commitment to environmental stewardship and sustainability. By embracing renewable energy, electrifying their fleet, implementing sustainable production practices, and designing eco-friendly products, Comcast is leading the way towards a more sustainable future.
Additional Suggestions
While Comcast has a current stated goal of transitioning 30% of its fleet to EVs, we believe they can do more. This 30% goal looks to be aligned to meet regulatory requirements in certain markets (i.e. – Europe, California, and New York) and we think they can do more. Comcast should look to increase this target to 50% of the fleet to be EVs by 2045. This will help the company reach its overall goal of Carbon Neutral by 2035 and its aspirational, long-term goal of zero emissions. This effort can continue to be partly funded by the earnings of the Green Bond the company issues.
Comcast should also look to bury 100% of its infrastructure in areas more prone to severe storms to minimize service interruptions to customers. Moreover, while installing infrastructure can be 4 – 6 times more expansive than installing on utility poles, underground construction allows you to build faster and reduces replacement costs when storms (or drivers) damage utility poles.
Conclusion
In conclusion, Comcast understands the importance of meeting climate change standards and minimizing risks associated with extreme weather conditions that could disrupt theme park operations, HFC cable networks, or could cause damage to the broadcasting networks that may lead to reduced or lost service to customers. From 2019 to year-end 2022, Comcast has already reduced market-based and enterprise-wide Scope 1 and 2 GHG emission by 38%. With a continued investment in renewable energy as a primary focus to the decarbonization strategy, management believes the 2035 goal of carbon neutrality is achievable.
Additionally, Comcast plans to double energy efficiency of their U.S. network by 2030 and are determined to utilize greener building standards for current and new construction. For example, One Universal, a large office building construction project is being built under LEED Platinum standards and will have 137 electric vehicle charging stations for employee use. Similarly, Comcast’s headquarters in Philadelphia, the Comcast Technology Campus is on track to be the tallest double LEED platinum certified building in the country. Comcast’s continued effort and focus on meeting sustainability targets set by management will help lead to a greener future and hopefully a better and innovative way of conducting business.
