Ripple Labs’ legal battle with the US Securities and Exchange Commission (SEC) is still ongoing. That doesn’t stop Ripple Labs from looking ahead, though. The company signed the Climate Pledge on September 20, setting itself the goal of being carbon neutral by 2040.
The Climate Pledge
By signing the Climate Pledge, Ripple Labs joins a list of more than 375 companies. The Climate Pledge was founded in 2019 by Amazon, among others, where Jeff Bezos was still at the helm at the time. Meanwhile, the alliance includes companies from 51 industries and 29 countries, all of which guarantee to be carbon neutral 10 years before the Paris Agreements.
“When it comes to the climate crisis, we believe that crypto should also do its part. Yesterday we signed the Climate Pledge and became part of a group of more than 375 companies that are putting the planet first,” Ripple Labs said in a statement. Other participants include companies such as Visa, IBM, Microsoft, Coca-Cola, Unilever, Mercedes Benz and many more.
What does this mean for Ripple Labs?
Signing the Climate Pledge means that from now on Ripple Labs will regularly measure and report its climate footprint and greenhouse gas emissions. Furthermore, it must implement strategies to reduce CO2 emissions, in line with the Paris climate agreement. Ripple Labs should do this by changing processes within the business, working more efficiently, using sustainable energy and using less material.
Furthermore, the aim is to offset the remaining emissions with additional, quantifiable, real, permanent and socially beneficial offsets to reduce annual carbon emissions to zero by 2040. Ripple itself states on the Climate Pledge website that “with every solution it will realize a more sustainable global economy and planet.”
Lawsuit with the SEC
Meanwhile, the protracted lawsuit with the SEC is still ongoing. That case mainly revolves around the issuance and public sale of the XRP token, which the US regulator claims is an illegal securities issue. Normally, a party that sells such financial objects publicly needs approval from the SEC. All told, Ripple Labs has already incurred more than $100 million in legal fees for this case.
Recently, Ripple Labs has put up a new argument to settle the matter in their favor. According to the company, the tokens are not securities by definition, as there are no “investment contracts” in place. In those kinds of contracts, a publisher, in this case Ripple Labs, assumes certain rights for investors or at least obligations to operate in their favor.
Following this new defense from Ripple Labs, the XRP token rose 5.5 percent. It therefore seems that the market is now more confident in a positive outcome. Incidentally, Ripple Labs is not the only party in conclave with the SEC. LBC and Dragoinchain are also in the middle of a conflict with the powerful financial body. For the industry, it is hoped that Ripple Labs wins the case soon.