Nvidia accused of greenwashing AI’s climate impact as emissions soar

Nvidia is misleading the public about artificial intelligence's potential climate benefits while its indirect emissions rise sharply, according to a new report by Greenpeace and other environmental groups.

The report, published last week and titled NVIDIA's AI climate hoax, accused the US chipmaker of "greenwashing" by emphasizing AI's potential to reduce emissions and improve energy efficiency while downplaying the environmental impact of the industry's rapid expansion.

It found that Nvidia's disclosed Scope 3 greenhouse gas emissions have risen 725% since 2020, an increase of more than 9.4 million metric tons of carbon dioxide equivalent.

The calculation is based on figures published in Nvidia's own sustainability reports.

Scope 3 refers to indirect emissions across a company's value chain, including those generated by suppliers.

The report said Nvidia's increase was primarily driven by emissions from producing the components, materials and manufacturing services required for its GPUs and AI systems.

The researchers also sought to estimate emissions from customers using Nvidia chips, which the company does not disclose.

Based on estimates of chip sales and electricity consumption, they calculated that Nvidia products sold between 2022 and the end of 2025 could generate between 4 million and 21 million metric tons of CO2 equivalent over one year's use.

The report also challenged Nvidia's claims about AI's environmental benefits.

Nvidia sustainability chief Josh Parker has said a "very rapidly growing consensus" suggests that AI is likely to produce net emissions reductions if deployed broadly.

The report argues there is no clear consensus that AI growth will deliver a net climate benefit and that rapidly expanding generative AI is already increasing electricity demand and emissions.

Nvidia says improvements in computing efficiency and the use of AI can help address environmental challenges. The company also says it matched 100% of its global electricity consumption with clean energy for the second consecutive year.