NVIDIA is the GPU manufacturer supplying and driving the AI boom. NVIDIA GPUs are a critical component used in data centers around the world. These GPUs supply the cloud compute used to power generative AI. However, the company’s activities raise significant environmental concerns. Data centers are driving emissions up, both through energy consumption and on-site energy generation using fossil fuels. While NVIDIA claims to be climate conscious, a recent report from Greenpeace claims that the company’s disclosures are not reporting downstream scope 3 emissions:
“The emissions impact from the use of the products NVIDIA sells matters enormously, given they are supplying what is reported to be the most energy-intensive component16 of the unprecedented and fossil-fuelled data centre buildout. Despite this, the company does not disclose ‘category 11’ emissions, which would estimate the resulting greenhouse gas emissions from the use of NVIDIA’s sold products. NVIDIA only discloses eight categories out of a possible 15 for its Scope 3 emissions. This is in stark contrast to AMD, another chip company, which discloses its Scope 3 ‘downstream’ emissions associated with the use of its sold products, including category 11.”
NVIDIA has often claimed that generative AI will help combat climate change in the long run. This is a claim with little evidentiary backing and no clear consensus from the scientific community. Downstream scope 3 emissions should not be overlooked. Many products contribute the most to global GHG emissions after they enter consumer’s hands, with oil and gas being the standout example. Companies dedicated to accurate climate reporting should not exclude data just because it is unflattering. Doing so while claiming to be a proactive player in the environmental space may be tantamount to greenwashing.
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