• Growing regulations are demanding companies to report their environmental impact.
• According to experts, greater transparency and more collaborations are increasingly important to reduce advertising carbon footprint.

Technology giant Google has added a carbon emissions calculator to Google Ads to help advertisers monitor the environmental impact of their campaigns.

The new tool will offer more precise estimates than previous broad calculations and generate in-depth reports using Google's first-party data. The emissions data take into account several factors, including ad targeting, media mix, and auction dynamics across all of Google's advertising tools.

After years of testing with L’Oréal, Carwow, Giffgaff, and LVMH, the tool is now available to selected large advertisers. Carwow, an online marketplace for buying and selling cars, realised that its actual ad-related carbon emissions were lower than expected, helping the company reinforce its carbon reduction strategies. Businesses used spend-based estimates to calculate emissions before, but they overestimated emissions.

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Google is now stepping up its efforts and measures to achieve the goal of 24/7 carbon-free energy and net-zero emissions by 2030. The recent development in reducing the carbon footprint of advertisers on its Google Ads platform, where businesses promote their products and services reflects its clean energy ambitions.

Adam Elman, director of sustainability at Google, commented: “In the past, they might have relied on broad estimates, but this is the first time that they will actually have first-party data, so it really gives them precise information using our own data.”

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The company is also investing in developing AI-driven tools to reuse creative assets and improve ad targeting in order to make advertising greener and more sustainable. This will lower unnecessary emissions and reduce the need for new photoshoots or video productions.

The emissions data are pursuant to global sustainability standards like the Greenhouse Gas Protocol and the Global Media Sustainability Framework.

To compare this tool with similar tools from leading ESG providers specialising in carbon accounting and removal, visit our ESG Marketplace.

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Source: Campaign