Sony brings zero-carbon goal forward to 2040, eyes metaverse revolution

Japanese giant Sony brought forward its deadline for reaching carbon neutrality by a decade on Wednesday, saying it is now targeting net-zero emissions across its business by 2040.

The electronics and entertainment firm said the decision was taken "as climate change risks become more apparent and serious worldwide, and the transition to a decarbonised society has become an urgent issue".

Climate campaigners praised the move, but raised doubts over an element of how Sony aims to reach the goal -- investing in new technology that removes carbon from the atmosphere or converts it into a less harmful compound.

Sony said it wants its own factories to be carbon neutral by 2030, also a decade earlier than its previous goal, and plans to reach that by increasing use of renewable power and energy-saving.

Eliminating emissions from areas "such as products, supply chains, and logistics", however, is to be achieved in part by investing in start-ups focused on carbon removal and projects that encourage carbon absorption with so-called augmented ecosystems.

But that technology remains unproven, said Eri Watanabe, senior finance campaigner at Japanese climate group 350.org.

Sony's announcement "is a positive signal that the company is serious about tackling climate change", but these removal methods are "unproven, and (it is) uncertain if it can contribute to the decarbonisation pathway", she said.

She said Sony could influence other Japanese firms to upgrade their climate targets but urged the company not to rely "on unproven technologies to reduce its emissions."

UN climate experts say humanity has fewer than three years to halt the rise of planet-warming carbon emissions, and less than a decade to slash them by nearly half to have a shot at capping global warming at a target 1.5 degrees Celsius.

Japan, which is highly dependent on imported fossil fuels, aims to become carbon neutral by 2050. The country is the world's sixth-biggest carbon emitter if the EU is counted as one bloc, according to European Commission data.

METAVERSE REVOLUTION WITH CROSS-PLATFORM PUSH

Sony also said it is well-positioned to play a leading role in the metaverse, or immersive virtual worlds, which commentators speculate will massively disrupt industries and establish new powerhouses.

The metaverse is a vague term encapsulating the idea that consumers will spend more time in online simulated environments. While the concept is evolving, it has become a buzzword in briefings and a driver of industry dealmaking.

"The metaverse is at the same time a social space and live network space where games, music, movies and anime intersect," Chief Executive Kenichiro Yoshida said at a strategy briefing on Wednesday, pointing to the use of free-to-play battle royale title Fortnite from Epic Games as an online social space.

Sony's game, music and movie units contributed two-thirds of operating income in the year ended March, underscoring the group's transformation from consumer electronics maker into a metaverse-ready entertainment juggernaut under Yoshida and predecessor Kazuo Hirai.

The firm is a gaming gatekeeper with its PlayStation 5 console, however observers point to the risk presented by the growth of cross-platform, cloud-based titles and their potential to reduce the influence of proprietary platforms.

Sony has been adjusting its approach, enabling cross-play in Fortnite in 2018. This week, Epic said in-game "V-Bucks" currency purchased on PlayStation would be usable on other platforms.

"PlayStation has played a huge role in the social gaming revolution that's nurturing the growth of the metaverse as a new entertainment medium," Epic's CEO Tim Sweeney said on Twitter.

Sony has also taken steps to expand beyond its focus on single-player titles such as "Spider-Man: Miles Morales", with a deal announced in January to buy Bungie, the developer of online multi-player shooter "Destiny".

"We believe it will be a catalyst to enhance our live service game capabilities... (It) represents a major step forward in becoming multi-platform," Yoshida said.

Sony already licences its content to other platforms, profiting from the value to streamers of content such as popular U.S. sitcom "Seinfeld". Though the firm owns the Crunchyroll anime streaming service, it has not pushed as aggressively into operating its own video platforms as rivals such as Walt Disney Co with its Disney+ service.

Beyond the metaverse, Yoshida also staked out Sony's claim in mobility, with the conglomerate developing an electric vehicle with Honda Motor Co Ltd.

Sony created a new lifestyle in 1979 with the launch of the Walkman, Yoshida said.

"We are aiming to turn the mobility space into a new entertainment space... We believe mobility will be the next megatrend," he said.