Fans of 30 Rock will remember a character named Greenzo, played by David Schwimmer. Employed as an environmental mascot to promote GE products and TV network NBC’s sustainability credentials (in about that order), Greenzo starts to believe his own hype, culminating in a hilarious appearance on The Today Show, where, reminiscent of Peter Finch’s deranged newsreader in Network, he rants incoherently about “big companies and their two-faced, fat cat executives”.
There’s always been something messianic about Google’s environmental proclamations – give CEO Larry Page half a chance and he’ll proselytise with missionary zeal about the company’s clean energy policies – but, thankfully, all comparisons with Tiny Fey’s satire on corporate avarice end there. In the short term at least, Google is happy to let its finances do the talking.
In December, the company snapped up a $200m equity stake in the Spinning Spur Wind Project in the Texas Panhandle, bringing its total investment in renewable energy projects since 2010 to $1bn. The deal was significant for two reasons.
First, Google committed to it before a last-minute deal was brokered in Congress that extended the US Government’s 2.2¢ per kilowatt hour tax credit for energy produced at wind farms. This amounts to an emphatic vote of confidence in the long-term profitability of the US domestic wind market at a time when experts were predicting very little new capacity in 2013.
Second, by becoming the first investor in an EDF Renewable Energy project that is not a financial institution, Google is sending a clear message to corporate America that multinationals can and should be an important new source of capital for the renewable energy sector.
“From our perspective, these are smart investments and more corporations should be making them,” said Kojo Ako-Asare, Google’s head of corporate finance.
Google has also completed two power purchase agreements (PPAs), long-term commitments (in this case, 20 years) to buy renewable energy directly from developers. The schemes “green” electricity grids in Iowa and Oklahoma where the company has data centres and directly benefit clean energy developer NextEra by offering it certainty on the payments for its power.
In the future, Google clearly believes that the smart money will, by necessity, invest in sustainable energy initiatives that benefit wider society as opposed to the special interests of the few.
Google’s investments also serve a third important purpose, that of reconnecting the $250bn global brand with its progressive northern Californian roots in the wake of a very public tax avoidance scandal in the UK and ongoing debate surrounding privacy and anti-trust issues in the US.
In 2007, Google became the world’s first carbon neutral corporation. Six years on, the company founded in the back of a garage with the unofficial slogan of “Don’t be evil” still appears to be 100 per cent committed – culturally, ideologically and financially – to sustainable business practices at every level. Greenzo would be proud.