CHAPTER 02
Supporting Global Climate Action
We see a strong connection between sustainability work and the issues of equity, access, and inclusion at the heart of economic empowerment. In alignment with our purpose and our businesses, we’re taking action to reduce our emissions and remove carbon from the environment, support clean and renewable energy resources, address the environmental impact of our products, and invest in sustainable systems.
CHAPTER 02
Supporting Global Climate Action
We see a strong connection between sustainability work and the issues of equity, access, and inclusion at the heart of economic empowerment. In alignment with our purpose and our businesses, we’re taking action to reduce our emissions and remove carbon from the environment, support clean and renewable energy resources, address the environmental impact of our products, and invest in sustainable systems.
Table of Contents
02.1
Reducing Emissions and Removing Carbon
02.2
Investing in Clean and Renewable Energy
02.3
Addressing the Impact of Our Products
Table of Contents
02.1
Reducing Emissions and Removing Carbon
02.2
Investing in Clean and Renewable Energy
02.3
Addressing the Impact of Our Products
02.1
Reducing Emissions and Removing Carbon
In 2023, we continued our focus on cutting our operational carbon footprint, reducing our internal carbon emissions intensity, expanding our carbon removal portfolio, and adapting our business to align with sustainability initiatives. Our commitment to being net zero carbon for operations by 2030 remains our goal. We use carbon audits, climate disclosures, and science-based targets to measure our climate action efforts and inform our stakeholders.
02.1
Reducing Emissions and Removing Carbon
In 2023, we continued our focus on cutting our operational carbon footprint, reducing our internal carbon emissions intensity, expanding our carbon removal portfolio, and adapting our business to align with sustainability initiatives. Our commitment to being net zero carbon for operations by 2030 remains our goal. We use carbon audits, climate disclosures, and science-based targets to measure our climate action efforts and inform our stakeholders.
Global carbon audits
In partnership with Watershed, we conduct an annual global carbon audit. It’s essential for us to have a granular view of emissions across our business units and activities. This allows us to target the most significant internal drivers of our carbon footprint. Our roadmap to reach net zero carbon for operations by 2030 includes our scope 1, 2, and 3 emissions for all our brands.
Climate disclosures
In 2023, we once again disclosed our carbon emissions in accordance with CDP guidelines. CDP provides a common framework to compare companies’ environmental progress; we report to CDP because we believe transparency is crucial for enabling critical climate progress. Disclosures for our Sustainability Accounting Standards Board (SASB) framework and the California AB 1305 Carbon Credit Disclosure, with granular details on our carbon credit purchases, are in the appendix.
Science Based Targets (SBTi)
In 2023, SBTi completed its verification of our near-term emission reduction targets. SBTi is widely considered the gold standard for climate targets: to set SBTi-aligned targets, we had to engage in a rigorous target validation process. By setting this verified target, we strive to align our operational reduction efforts with what is necessary to limit global temperature rise to 1.5°C. Block’s verification can be found on SBTi’s website.
Global carbon audits
In partnership with Watershed, we conduct an annual global carbon audit. It’s essential for us to have a granular view of emissions across our business units and activities. This allows us to target the most significant internal drivers of our carbon footprint. Our roadmap to reach net zero carbon for operations by 2030 includes our scope 1, 2, and 3 emissions for all our brands.
Climate disclosures
In 2023, we once again disclosed our carbon emissions in accordance with CDP guidelines. CDP provides a common framework to compare companies’ environmental progress; we report to CDP because we believe transparency is crucial for enabling critical climate progress. Disclosures for our Sustainability Accounting Standards Board (SASB) framework and the California AB 1305 Carbon Credit Disclosure, with granular details on our carbon credit purchases, are in the appendix.
Science Based Targets (SBTi)
In 2023, SBTi completed its verification of our near-term emission reduction targets. SBTi is widely considered the gold standard for climate targets: to set SBTi-aligned targets, we had to engage in a rigorous target validation process. By setting this verified target, we strive to align our operational reduction efforts with what is necessary to limit global temperature rise to 1.5°C. Block’s verification can be found on SBTi’s website.
2023 global carbon audit
Our 2023 comprehensive global carbon audit includes all our business units and value chain, covering all our Scope 1, 2, and 3 emissions for operations. Watershed, our third-party sustainability partner, conducts our audits in collaboration with stakeholders across our businesses and activities. In 2023, we onboarded Apex Companies to provide assurance for our Scope 1, 2, and select Scope 3 emissions.
2023 global carbon audit
Our 2023 comprehensive global carbon audit includes all our business units and value chain, covering all our Scope 1, 2, and 3 emissions for operations. Watershed, our third-party sustainability partner, conducts our audits in collaboration with stakeholders across our businesses and activities. In 2023, we onboarded Apex Companies to provide assurance for our Scope 1, 2, and select Scope 3 emissions.
Measure
Reduce
Remove
Measure
Reduce
Remove
Block's carbon efficiency continues to improve
Emissions per $1M in profit have fallen by 63% since 2019
Emissions in tCO₂e per $1M in profit
Block's carbon efficiency continues to improve
Emissions per $1M in profit have fallen by 63% since 2019
Emissions in tCO₂e per $1M in profit
Despite continued strong growth across our businesses, we saw for the first time a reduction to our absolute carbon emissions in 2023 along with a significant reduction to our emissions intensity — measured as tonnes of CO2 e per $1 million in gross profit. As a fast-growing company, our absolute emissions may continue to rise in the future in line with the business. Given this, emissions intensity is a better metric for tracking progress in the near term; lowering emissions intensity demonstrates that we’ve begun to decouple business growth from emissions growth.
Despite continued strong growth across our businesses, we saw for the first time a reduction to our absolute carbon emissions in 2023 along with a significant reduction to our emissions intensity — measured as tonnes of CO2 e per $1 million in gross profit. As a fast-growing company, our absolute emissions may continue to rise in the future in line with the business. Given this, emissions intensity is a better metric for tracking progress in the near term; lowering emissions intensity demonstrates that we’ve begun to decouple business growth from emissions growth.
Block's decarbonization progress to date
Total emissions in tCO₂e per year
Net emissions
Emissions addressed by carbon removal
Block's decarbonization progress to date
Total emissions in tCO₂e per year
Net emissions
Emissions addressed by carbon removal
Breaking down our 2023 global carbon footprint
We’ve distilled our key emission categories into our global carbon footprint visualization graph below.
Block's total carbon footprint in 2023 was 284,924 tCO₂e
Distribution of 2023 total emissions (in %)
Scope 1+2
Additional notes: Our 2023 comprehensive global carbon audit includes all our business units and supply chain, covering all our Scope 1, 2, and 3 emissions for operations. Watershed, our third-party sustainability partner, conducts our audits in collaboration with stakeholders across our businesses and activities. In 2023, we onboarded Apex Companies to provide assurance for our Scope 1, 2, and select Scope 3 emissions.
Read more about our emissions by category and see our emissions by greenhouse gas (GHG) protocol category in our full 2023 CSR Report.
Breaking down our 2023 global carbon footprint
We’ve distilled our key emission categories into our global carbon footprint visualization graph below.
Block's total carbon footprint in 2023 was 284,924 tCO₂e
Distribution of 2023 total emissions (in %)
Scope 1+2
Additional notes: Our 2023 comprehensive global carbon audit includes all our business units and supply chain, covering all our Scope 1, 2, and 3 emissions for operations. Watershed, our third-party sustainability partner, conducts our audits in collaboration with stakeholders across our businesses and activities. In 2023, we onboarded Apex Companies to provide assurance for our Scope 1, 2, and select Scope 3 emissions.
Read more about our emissions by category and see our emissions by greenhouse gas (GHG) protocol category in our full 2023 CSR Report.
Carbon removal portfolio
In 2023, we removed 100,000 metric tonnes of carbon through our portfolio of supported projects. In addition to our 2023 carbon removal, we have nine more supported projects across a wide range of methodologies. Collectively, these are anticipated to deliver an additional 193,220 metric tonnes of carbon removal in 2024 and beyond. We disclose granular details of the carbon credits we both retired and allocated to 2023 in our AB-1305 disclosure.
Carbon removal portfolio
In 2023, we removed 100,000 metric tonnes of carbon through our portfolio of supported projects. In addition to our 2023 carbon removal, we have nine more supported projects across a wide range of methodologies. Collectively, these are anticipated to deliver an additional 193,220 metric tonnes of carbon removal in 2024 and beyond. We disclose granular details of the carbon credits we both retired and allocated to 2023 in our AB-1305 disclosure.
Our carbon removal projects across the world
We retired 100,000 tonnes of CO₂e in 2023 and have already contracted close to 200,000 tonnes for future removal.
Countries where we contracted carbon credits for future removal
Countries where we retired carbon credits
Additional notes: CO2 e - Carbon dioxide equivalent is the number of metric tons of CO2 emissions with the same global warming potential as one metric ton of another greenhouse gas.
Our carbon removal projects across the world
We retired 100,000 tonnes of CO₂e in 2023 and have already contracted close to 200,000 tonnes for future removal.
Countries where we contracted carbon credits for future removal
Countries where we retired carbon credits
Additional notes: CO2 e - Carbon dioxide equivalent is the number of metric tons of CO2 emissions with the same global warming potential as one metric ton of another greenhouse gas.
Images from projects supported by our carbon removal portfolio.
02.2
Investing in Clean and Renewable Energy
We consider access to clean, renewable, affordable energy to be a key part of economic empowerment, and dedicate resources to clean energy initiatives.
02.2
Investing in Clean and Renewable Energy
We consider access to clean, renewable, affordable energy to be a key part of economic empowerment, and dedicate resources to clean energy initiatives.
Renewable Energy Certificates
Purchasing renewable energy certificates (RECs) is central to our clean energy initiatives. In addition to offsetting carbon emissions, purchasing RECs encourages renewable energy production and use.
Block purchased 24,298 RECs in 2023, representing over 24,298 megawatts of clean energy added to the grid across several regions throughout the United States, Canada, Japan, and Australia.
P-RECs
In our effort to advance economic empowerment within our climate efforts, we purchased our third Peace-REC in 2023. While our 2021 and 2022 P-REC purchases focused on solar power for community hospitals in South Sudan, our 2023 P-REC purchase in Nigeria, made through 3Degrees, aimed at supporting a community greenhouse initiative to enhance local food security.
Virtual power purchase agreement
In 2023, we committed to a five-year vPPA for a new five-site solar installation in Michigan brokered through Watershed’s clean power team. The solar projects, targeted to go live in 2025, are projected to avoid 1,048 pounds of CO2 per MWh of power generation; cumulatively, Block’s commitment will avoid >58,000 tCO2 e, equivalent to >146 million car miles driven.
Renewable Energy Certificates
Purchasing renewable energy certificates (RECs) is central to our clean energy initiatives. In addition to offsetting carbon emissions, purchasing RECs encourages renewable energy production and use.
Block purchased 24,298 RECs in 2023, representing over 24,298 megawatts of clean energy added to the grid across several regions throughout the United States, Canada, Japan, and Australia.
P-RECs
In our effort to advance economic empowerment within our climate efforts, we purchased our third Peace-REC in 2023. While our 2021 and 2022 P-REC purchases focused on solar power for community hospitals in South Sudan, our 2023 P-REC purchase in Nigeria, made through 3Degrees, aimed at supporting a community greenhouse initiative to enhance local food security.
Virtual power purchase agreement
In 2023, we committed to a five-year vPPA for a new five-site solar installation in Michigan brokered through Watershed’s clean power team. The solar projects, targeted to go live in 2025, are projected to avoid 1,048 pounds of CO2 per MWh of power generation; cumulatively, Block’s commitment will avoid >58,000 tCO2 e, equivalent to >146 million car miles driven.
Onsite at a Gridless operation in Kenya.
Gridless
In 2022, our Bitcoin Clean Energy Initiative (BCEI) invested in Gridless, a renewable energy–based bitcoin mining company based in Kenya.
In 2023, BCEI continued to support Gridless, which is using bitcoin computational centers to lower the cost of electricity for local communities in East Africa. In the past year, Gridless opened six site operations in Kenya, Malawi, and Zambia, leveraging clean energy sources including hydroelectric, solar, biomass, and geothermal energy.
Onsite at a Gridless operation in Kenya.
Gridless
In 2022, our Bitcoin Clean Energy Initiative (BCEI) invested in Gridless, a renewable energy–based bitcoin mining company based in Kenya.
In 2023, BCEI continued to support Gridless, which is using bitcoin computational centers to lower the cost of electricity for local communities in East Africa. In the past year, Gridless opened six site operations in Kenya, Malawi, and Zambia, leveraging clean energy sources including hydroelectric, solar, biomass, and geothermal energy.
02.3
Addressing the Impact of Our Products
Directly or indirectly, our Square hardware products and Cash App card issuance contribute to climate change. To lessen the impact, Square is evolving its hardware and packaging, mitigating the effect of plastic use in manufacturing, and working with supply chain partners to help them adopt renewable energy.
02.3
Addressing the Impact of Our Products
Directly or indirectly, our Square hardware products and Cash App card issuance contribute to climate change. To lessen the impact, Square is evolving its hardware and packaging, mitigating the effect of plastic use in manufacturing, and working with supply chain partners to help them adopt renewable energy.
Hardware and sustainability
Square is committed to lessening the impact of its products through a tried-and-true approach: reduce, reuse, recycle.
Hardware and sustainability
Square is committed to lessening the impact of its products through a tried-and-true approach: reduce, reuse, recycle.
Supply chain audits
Square continues to engage with third-party services to guide its contract manufacturers in building up their carbon emission management capabilities. This includes an audit of their annual carbon emission data to help identify opportunities for reduction.
EcoVadis, a third-party provider of business sustainability ratings, helps Square assess its supply chain. In 2023, EcoVadis found that Square’s partners are performing above the industry average and steadily improving performance year over year.
Square is currently working with its low-scoring suppliers to improve their scores and will put a larger emphasis on the importance of score improvement in the upcoming year.
Supply chain audits
Square continues to engage with third-party services to guide its contract manufacturers in building up their carbon emission management capabilities. This includes an audit of their annual carbon emission data to help identify opportunities for reduction.
EcoVadis, a third-party provider of business sustainability ratings, helps Square assess its supply chain. In 2023, EcoVadis found that Square’s partners are performing above the industry average and steadily improving performance year over year.
Square is currently working with its low-scoring suppliers to improve their scores and will put a larger emphasis on the importance of score improvement in the upcoming year.
Square's 2023 EcoVadis scores:
A breakdown of 2023 scores as well as how Square compares against the industry average (small black numbers).
Square's 2023 EcoVadis scores:
A breakdown of 2023 scores as well as how Square compares against the industry average (small black numbers).
Overall
Square’s score
53.5
Points above the industry average
+8.0
Environment
Square’s score
57.7
Points above the industry average
+12.1
Labor & Human Rights
Square’s score
54.9
Points above the industry average
+6.6
Ethics
Square’s score
48.6
Points above the industry average
+5.2
Sustainable Procurement
Square’s score
48.8
Points above the industry average
+11.5
Overall
Square’s score
53.5
Points above the industry average
+8.0
Environment
Square’s score
57.7
Points above the industry average
+12.1
Labor & Human Rights
Square’s score
54.9
Points above the industry average
+6.6
Ethics
Square’s score
48.6
Points above the industry average
+5.2
Sustainable Procurement
Square’s score
48.8
Points above the industry average
+11.5
At-risk plastic reclamation
We use plastics across the Block ecosystem, both in our operations and manufacturing, with hardware devices and card issuance across Square and Cash App being the key drivers.
To help offset the environmental impact of our plastic usage, we take a two-pronged approach: lowering our overall plastic footprint by reducing our consumption, and, where plastics are an unavoidable part of our supply chain and operations, transitioning to recycled content and funding the removal of at-risk plastics from the environment.
In 2023, we partnered again with Oceanworks to serve as our sustainability partner, specifically focused on at-risk plastics. As part of our alliance, Block funded the removal of 1,500,000 pounds of oceanbound at-risk plastics in 2023, a 50% increase from last year’s removals. We also conducted a global plastic audit for our entire business ecosystem. Our audit yielded a total plastic usage of approximately 1,716,149 pounds, which includes all upstream and downstream estimated impacts from our products and operations.
At-risk plastic reclamation
We use plastics across the Block ecosystem, both in our operations and manufacturing, with hardware devices and card issuance across Square and Cash App being the key drivers.
To help offset the environmental impact of our plastic usage, we take a two-pronged approach: lowering our overall plastic footprint by reducing our consumption, and, where plastics are an unavoidable part of our supply chain and operations, transitioning to recycled content and funding the removal of at-risk plastics from the environment.
In 2023, we partnered again with Oceanworks to serve as our sustainability partner, specifically focused on at-risk plastics. As part of our alliance, Block funded the removal of 1,500,000 pounds of oceanbound at-risk plastics in 2023, a 50% increase from last year’s removals. We also conducted a global plastic audit for our entire business ecosystem. Our audit yielded a total plastic usage of approximately 1,716,149 pounds, which includes all upstream and downstream estimated impacts from our products and operations.
The reclamation projects we funded in 2023 include:
Waterway Waste Reclamation
Collecting plastic waste from rivers in Ghana, Indonesia, India, and the Philippines
Mumbai, India: Oceanbound Waste Removal
Incentivizing the collection of low-value oceanbound plastic waste for recycling
Fishing Net Intervention
Recovering used fishing nets and returning them to the circular economy
Indonesia: Circular Building Materials
Creating circular building materials from plastic recycling discharge in Indonesia
Kerala, India: Coastal Plastic Intervention
Empowering communities to collect low-value plastic waste and return it to the circular economy at scale
Pondicherry, India: Oceanbound & Coastal Plastic Waste Diversion
Diverting waste in local communities by establishing scalable systems for logistics, collecting, sorting, recycling, and safe disposal.
Kenya: Coastal Plastic Reclamation
Scaling the collection of oceanbound plastic for consistency and reliability
The reclamation projects we funded in 2023 include:
Waterway Waste Reclamation
Collecting plastic waste from rivers in Ghana, Indonesia, India, and the Philippines
Mumbai, India: Oceanbound Waste Removal
Incentivizing the collection of low-value oceanbound plastic waste for recycling
Fishing Net Intervention
Recovering used fishing nets and returning them to the circular economy
Indonesia: Circular Building Materials
Creating circular building materials from plastic recycling discharge in Indonesia
Kerala, India: Coastal Plastic Intervention
Empowering communities to collect low-value plastic waste and return it to the circular economy at scale
Pondicherry, India: Oceanbound & Coastal Plastic Waste Diversion
Diverting waste in local communities by establishing scalable systems for logistics, collecting, sorting, recycling, and safe disposal.
Kenya: Coastal Plastic Reclamation
Scaling the collection of oceanbound plastic for consistency and reliability
Investing in sustainable systems
Whether repairing damages caused by extreme weather or making infrastructure upgrades to increase resilience, protections against climate change can be prohibitively expensive, particularly for small businesses and individuals.
Seeing a need for more accessible funding for projects that help decarbonization and promote sustainability, we drew on our experience with Community Development Financial Institutions (CDFIs) to launch our Sustainable Banking Initiative in the US in 2023.
With close community ties and values-driven mandates, CDFIs are ideally positioned to fund the kind of sustainability projects we were envisioning. We started our initiative with $25 million drawn from our existing demand deposit account balances, placing it in deposits to Community Bank of the Bay’s Bay Area Green Fund, Amalgamated Bank, and National Cooperative Bank.
Investing in sustainable systems
Whether repairing damages caused by extreme weather or making infrastructure upgrades to increase resilience, protections against climate change can be prohibitively expensive, particularly for small businesses and individuals.
Seeing a need for more accessible funding for projects that help decarbonization and promote sustainability, we drew on our experience with Community Development Financial Institutions (CDFIs) to launch our Sustainable Banking Initiative in the US in 2023.
With close community ties and values-driven mandates, CDFIs are ideally positioned to fund the kind of sustainability projects we were envisioning. We started our initiative with $25 million drawn from our existing demand deposit account balances, placing it in deposits to Community Bank of the Bay’s Bay Area Green Fund, Amalgamated Bank, and National Cooperative Bank.