Logitech CEO Bracken Darrell is challenging corporations to step up their efforts to address climate change, telling CNBC’s Jim Cramer on Tuesday that the device manufacturer plans to provide consumers more transparency about the carbon footprint of Logitech products.
The company, which makes computer parts including mice, keyboards and webcams, is measuring its products’ impact — from manufacturing to distribution to usage to disposal — on the environment and plans to include the information on all Logitech packaging this year.
“All of that carbon impact is going to go on our labels, and we hope that that will influence other companies in every industry to compete,” Darrell said in a “Mad Money” interview. “Like calories on a food package, we’re going to have carbon on our package.”
Logitech, which first announced the sustainability initiative near the end of spring last year, also said it would list the carbon information on its website. The company claims to be the first consumer electronics company to reveal the details to consumers.
Using what it calls Life Cycle Analysis, Logitech will analyze the carbon, toxicity and circularity impact of products and packaging materials, an analysis that will be reviewed by third-party verifiers such as Natural Capital Partners and iPoint Group, according to a press release.
It’s the latest of the company’s efforts to be more eco-friendly, including neutralizing carbon in Logitech gaming products, supporting the international Paris Agreement and adopting renewable electricity to power the company solely by 2030, the release said.
“In the last four or five years, our team, which is very passionate about the environment … started down a path we call pervasive sustainability,” Darrell said. “Not only are we going to work like crazy to try to reverse the effects of global warming and try to reduce the global warming from here, but we’re also going to try to … influence other companies and users.”
The comments come after the Switzerland-based company posted quarterly results where revenue surged 85% in American dollars and raised its annual forecast. Logitech, which has benefited greatly from work-from-home trends sped up by the coronavirus pandemic, soundly beat Wall Street expectations in its third fiscal quarter with $1.67 billion on the top line and $2.45 of adjusted earnings per share.
Analysts expected $1.24 billion in revenues and $2.45 in earnings per share, according to FactSet.
Darrell sees more opportunity ahead of Logitech as companies and schools continue to adopt remote work capabilities and many move toward a hybrid model.
“We’re going to be right in the center of the way people work in the future,” said Darrell, who has led the company since 2012. Hybrid work “means multiple workspaces, it means video in both places, it means video in conference rooms, and that’s a big chunk of our business.”
Despite the positive earnings report out Tuesday morning, Logitech shares sold off during the session to close down 3.15% at $97.73. The stock has declined almost 6% the past two trading sessions.
Logitech stock more than doubled in 2020.
