Good morning, everybody. We're here for another NachoTuesday, and today I have Scott from Digital Carbon Online. Scott is actually at an event right now and was able to tune in live from London. Scott, if you'd like to give a little more backstory on what you're up to today and tell us more about your company and how you're helping companies address their carbon footprint in 2024. (00:37) Scott's Update from the Climate Impact Show Thank you, Andy. I’m at the Climate Impact Show in London today, where we have around 500 people gathering over the next two days. We’re discussing various technologies, policies, and funding issues related to climate change and how we can address them. It’s been an eye-opening day so far. I’ve had to find a quiet spot for this conversation, which happens to be in the staff room of the organizers, so you might see a few people wandering past. I’m at the Royal Institution, right in the center of London, which is a historically significant place. I’m honored to be here and to be speaking with you now. Key Takeaways from the Conference It’s a bit early to draw firm conclusions since we’re only halfway through day one, but there’s been significant discussion about voluntary carbon markets and what’s needed to build trust in these systems. There’s also been a lot of talk about repurposing trillions of dollars' worth of oil and gas infrastructure into greener alternatives, as well as the decarbonization of energy grids. These are just some of the topics I’ve been involved in or listening to. There’s still a lot more to explore and understand. Challenges in Reducing Carbon Footprints The question of what’s holding back progress in reducing carbon footprints, especially in the developing world, is a complex one. It’s more than a million-dollar question—it’s a trillion-dollar question. I was just discussing whether we should continue pushing the responsibility onto individual consumers or if we need more institutional and governmental change. It seems we’re moving away from the notion that individuals alone are responsible, a concept influenced by Big Oil’s control over the market. However, there is still a crucial role for individuals who care and can influence change, alongside the need for institutional or governmental intervention. Investment and Regulation In the business community, investment and regulation are key factors. While regulation is becoming stronger, it’s also becoming fragmented, leaving many businesses unsure about which standards or frameworks to follow. There’s a need for clear guidelines and support to navigate this complexity. Incentivizing Businesses and Educating Consumers For businesses, incentives can be a powerful motivator to make changes. They are often focused on the tangible benefits they can gain. Education is also crucial to help consumers understand how to make a difference. Governments can play a role by implementing changes more swiftly and effectively, especially when dealing with smaller groups. (04:54) The Scope of the Carbon Problem That reminds me, today in one of the talks about the voluntary carbon market, one of the panelists mentioned that we need to remove billions of tons of carbon from the atmosphere. Ironically, the only other industry that handles such massive quantities is the oil and gas industry. We're at a very early stage in developing our ability to remove this amount of carbon, but we need to scale it rapidly to match the size of the oil and gas industry. This comparison highlights the irony of our current situation. Government funding, influence, and policy setting will be crucial in driving progress. Meanwhile, businesses can take many daily actions to improve their carbon footprint, demonstrate their commitment, and amplify their impact through their suppliers, customers, employees, and beyond. Journey to Digital Carbon Online So, how did you get to this point in your career? What inspired you to start Digital Carbon Online? Tell us about your journey. That’s a four-hour conversation, but let me try to condense it. My background is in technology innovation. I worked in telecoms before the turn of the century, with major telecom companies globally, and later with Californian and Seattle-based firms. Throughout that time, I transitioned from big tech to startups. Around 2017-2018, I realized I was chasing job titles and money, and something was missing. People called it a midlife crisis, but it was more than that. I needed to find a place where I could apply my interests, passion, and talents to a better cause. I decided to focus on the intersection of sustainability and technology. Although I wasn’t sure how it would work, I was passionate about making a difference with integrity. This led me to work on technologies that positively impact the planet and to understand the environmental impact of digital technologies. Many people are unaware of this impact because it's not immediately obvious. Understanding Digital Carbon Footprints I found that conversations about digital carbon footprints often start with an "aha" moment, where people realize the issue. However, they quickly become overwhelmed by the complexity and may postpone taking action. I wanted to create something that helps people understand and act on this issue, driving further change. Impact of Digital Technologies It’s worth noting that the total carbon footprint of the internet is significant. It’s often cited as either the fourth largest emitter of greenhouse gases globally, just behind Russia, China, and the USA, or as emitting more greenhouse gases than the entire aviation industry. This is a huge problem. Some people ask if the technology sector's fast decarbonization will solve the problem once we have renewable energy. However, the IPCC report a few years ago indicated skepticism about renewable energy catching up with energy demand. This was echoed by a representative from the US Department of Energy at a recent panel, who emphasized the importance of fusion due to the growing energy demand outpacing renewable energy growth. The Role of Websites in Carbon Emissions Websites are a starting point because nearly every business has one, though the extent of its use and its criticality varies. Each time someone interacts with a website—whether ordering a product, browsing images, or watching videos—it generates carbon emissions. We aim to help people understand their digital footprint and mitigate it. Even though it might be a small part of the overall equation, every business owner can make a difference. The Benefits of Reducing Digital Carbon Footprints There are two key benefits: First, with around 112 billion active websites globally, even small reductions across many sites can have a significant impact. Second, these small steps can inspire businesses to take greater actions. Our tool helps businesses understand, track, and reduce their digital carbon footprint, providing a solid starting point for those unsure of where to begin. Encouragement and Awareness (12:02) Encouragement and pointers can lead to bigger and better actions. Being more aware of the problem moves people towards taking action. As a marketing person, I always aim to show, not just tell, the problem so people are more likely to act on it. For instance, many companies, especially those using AI, generate a lot of electricity for data processing and storage. This energy consumption is substantial, but people often don’t consider the electrical output needed to maintain websites like Facebook or other social media sites. With the advent of AI and quantum computing, energy demands are set to increase dramatically. Impact of AI and Energy Demands (12:28) This issue was recently discussed in another webinar. One panelist highlighted the significant impact of AI on the carbon footprint of the internet. The last studies comparing this impact to the aviation industry or nations were from 2018-2019. Since then, AI has advanced significantly. For instance, a chat with GPT-3 reportedly requires up to 100 times more energy than a Google search. Recommendations for Business Leaders (13:27) What tactics or processes would you recommend for business leaders to reduce their carbon footprint? While creating a new energy source isn’t feasible for most, businesses can still make meaningful small impacts. For instance, businesses can focus on reducing their carbon footprint in areas they control. Companies managing large estates, laboratories, processing plants, or supply chains need to concentrate on minimizing their impact. I am speaking with several multinationals who are focusing on digital sustainability, recognizing that digital transformation and carbon transformation are both crucial. Digital Carbon Online is a great starting point for measuring and assessing your website's carbon footprint. We provide tools to identify which pages are causing the most emissions and help improve them. Interestingly, the only way to have a zero-emission website is not to have one at all, which isn't practical. However, achieving a neutral position is possible. Tools and Strategies (14:23) Our technology helps identify high-emission pages and parts of your website so you can focus on improving them. This can also enhance your website’s usability, leading to better business outcomes. While it’s impossible to reduce emissions to zero, you can aim to minimize them as much as possible. Additionally, consider supporting carbon removal projects, which are integrated into our platform. Additional Tips for Reducing Carbon Footprint (15:57) Beyond using Digital Carbon Online, here are some immediate actions you can take in the digital space: Turn Off Unnecessary Devices: Similar to how my grandmother was concerned about the red LED light on a TV, we often leave devices on unnecessarily. Turn off devices and systems that you don’t need to leave on; this can have a significant impact. Use Audio Instead of Video When Possible: Although video adds value in many contexts, you don’t always need it for team calls or internal meetings. Switching to audio when appropriate can make a big difference. Carbon Credits and Their Role (18:20) What are your thoughts on carbon credits? Are you familiar with the concept? (18:50) Do you think there might be an opportunity for a carbon credits system? Perhaps companies that are actively reducing their carbon footprint could earn carbon credits by contributing to a system that helps develop technology or promote sustainability. This could act as a self-imposed tax with some benefit for the business. While I’m not in favor of forcing such measures, it could be an option if companies choose to participate. Voluntary Carbon Markets (19:15) I would say emphatically yes, there is potential there. However, the state of voluntary carbon markets and carbon credits is complex. Currently, the biggest hindrance is the need for regulation, standards, and verification to create a tradable asset class. Reforestation and deforestation credits are established, but carbon credits from rewilding projects are still emerging. Proper frameworks need to be in place to support such a system effectively. Motivation and Regulation (19:50) The idea of having a carbon credits system is promising, but it requires a robust regulatory framework and an asset class that can function within the market. Motivation plays a crucial role; with proper incentives, businesses are likely to do the right thing. The key is to create a win-win situation where reducing carbon footprints also offers tangible benefits, such as improved online reputation. Carrot vs. Stick (20:24) We incorporate both motivational aspects into Digital Carbon Online. The "carrot" is the desire to make a positive impact, driven by encouragement from employees, customers, and suppliers. The "stick" is the pressure from regulations and customer expectations. Our platform supports companies in addressing both these dynamics. Digital Carbon Verified Badge (21:18) We provide a Digital Carbon Verified badge that companies can display on their websites and marketing materials. This badge is linked to our system and offers transparency through a publicly accessible dashboard. It allows businesses to showcase their commitment and progress, providing both regulatory and social benefits. Balancing Carrot and Stick (22:15) Ideally, a balance of both the carrot and the stick is most effective. Regulations often make people pay attention, but positive incentives can make the process more palatable. Education and demand from employees and consumers can drive businesses to adopt sustainable practices more willingly. Education and the Future (23:24) Education is crucial for driving demand for sustainability. It helps create a market that follows where consumer and employee expectations lead. My work includes collaborating with educational institutions in the UK to integrate sustainability into their curricula, preparing future leaders to understand and address these issues from the start. Evolving the Movement (25:21) Over the next few years, my mission is to create a more sustainable digital future. While civilizations have often stumbled into problems, raising awareness and providing tools to address these issues early can make a difference. Digital Carbon Online is just the beginning. Our roadmap includes expanding beyond websites to other digital technologies. Challenges and Opportunities (26:00) People often overlook the logistical and environmental impacts of digital products. By highlighting the carbon footprint of everyday digital interactions, we can make the impact more tangible and drive more substantial change. The pandemic accelerated digital transformation, but we need data to show the benefits and shortcomings of digital versus physical solutions. Sharing Failures and Mistakes (27:28) In the field of sustainability, mistakes are inevitable. Sharing these failures is crucial so others can avoid repeating them. I’ve started a new series on Instagram to discuss these "sustainability flops" and encourage transparency about what doesn’t work. Next Steps for Digital Carbon Online (29:21) Digital Carbon Online is currently in a growth stage, expanding its client base across sectors. In the next five years, we plan to extend our focus beyond websites to other digital real estate. Integrating AI into our understanding of carbon footprints is a significant part of this growth. Getting Involved (30:21) To learn more about Digital Carbon Online, visit our website at digitalcarbon.online. You can also find us on LinkedIn for additional information. Digital Carbon Online is available in the B2B SaaS Marketplace NachoNacho. Feel free to explore and get involved. Closing Remarks (31:17) Scott, thank you for joining us today, especially during such a busy event. We look forward to working with you and growing our businesses together. Andy, thank you and thanks to everyone for joining us today.