Verizon signed seven new renewable energy contracts, which push its projected capacity to 2.6 gigawatts and drive the operator ever closer to its 2035 net-zero operational emissions goal.

According to Verizon, the virtual power purchase agreements (VPPAs) also position the operator to source and/or generate renewable energy equivalent to 50% of its total annual electricity consumption before 2025.

These VPPAs are funded as part of Verizon's $1 billion green bond, issued last September, and will finance the construction of seven solar and wind facilities. And according to Verizon CFO Matt Ellis, these VPPAs are a fundamental piece of the carrier's strategy to reach net-zero scope 1 and scope 2 emissions by 2035.

What's more, Verizon claims the projects funded with its latest green bond will prevent 1.6 million metric tons of carbon dioxide equivalent (CO2e) emissions by financing renewable energy generation. In total, the carrier expects the renewable energy projects that make up its 20 contracts will prevent 4.8 million metric tons of CO2e annually, based on the Environmental Protection Agency's greenhouse gas equivalencies calculator.

Telecom operators require uninterrupted access to electricity over large geographies, which makes it challenging to directly use renewable energy sources. Instead, many telecom operators — including Verizon — rely on fossil fuel-based electricity from local utilities to bridge the gap.

This is where VPPAs come into play. The purchase agreements allow Verizon to fund the production of renewable energy by paying utilities to adopt solar and wind energy. Verizon doesn’t expect its operations will be powered directly by these facilities. Instead, the power companies will sell solar and wind power locally, and Verizon will receive renewable energy credits for the electricity sold.

These credits enable Verizon to measure its renewable energy progress. “With these agreements, we are making significant progress toward our renewable energy goal,” Verizon's Green Bond Impact Report said.

The efforts are a step in the right direction, according to Gartner analyst Ed Anderson.

While he'd prefer to see enterprises eliminate their reliance on fossil fuels rather than redirect carbon emissions, "any initiative that strives to improve the sustainability posture of any organization is a good thing," he told SDxCentral, adding the ultimate sustainability goal of any organization needs to be lowering the overall carbon footprint, whether that's directly or indirectly.