Grove Collaborative to measure and offset AI-related emissions

SAN FRANCISCO - Grove Collaborative Holdings, Inc. (NYSE:GROV), a sustainable consumer products company with annual revenues of $185 million, announced Monday a set of commitments to measure, mitigate, and report the environmental impact of its artificial intelligence adoption through an expanded partnership with carbon accounting platform Gravity. According to InvestingPro data, the company currently trades below its Fair Value, despite facing some financial headwinds.

The sustainable consumer products company has developed an open-source formula to calculate AI-related carbon emissions, which it is making available to other organizations. Using this methodology, Grove estimates its projected 2025 AI-related carbon footprint at 17.8 metric tons of CO2e, equivalent to approximately 6% of the company’s 2024 business travel emissions.

"While we’re still learning about the climate impacts of society’s AI adoption, we will not and cannot choose between innovation and sustainability," said Jeff Yurcisin, CEO of Grove Collaborative, in a press release statement. InvestingPro analysis reveals the company faces near-term challenges, with analysts anticipating sales decline in the current year and an overall weak financial health score. For deeper insights into Grove’s financial outlook and 8 additional key ProTips, consider exploring the comprehensive Pro Research Report available on InvestingPro.

Grove’s commitments include measuring and integrating AI emissions into its overall Scope 3 carbon reporting, investing in nature-based carbon offsets to balance these emissions, identifying opportunities for emissions reduction, and prioritizing AI tools that emphasize sustainability and transparency.

The company currently uses AI for workflow management, content development, and predictive modeling. While Grove’s current AI-related emissions are relatively small, the company acknowledges that increased adoption will likely grow emissions proportionally.

The measurement methodology, developed with Gravity, accounts for compute time, server power, and grid emissions factors to determine AI-related carbon emissions. Grove plans to publish detailed findings in its 2025-2026 annual sustainability report, expected in May 2026.

Saleh ElHattab, CEO and Founder of Gravity, noted that the partnership aims to "deliver an early blueprint for tracking an organization’s consumption of these new tools."

The technical details of the measurement formula are available on Gravity’s website for other organizations to implement. With a market capitalization of approximately $63 million and a moderate debt level, Grove’s sustainability initiatives come at a crucial time for the company. Investors seeking detailed analysis of Grove’s financial metrics, sustainability efforts, and growth potential can access the full range of metrics and expert insights through InvestingPro’s comprehensive research platform.

In other recent news, Grove Collaborative Holdings Inc. reported its Q2 2025 earnings, revealing a revenue decline of 15.5% year-over-year, bringing in $44 million. Despite this decrease, the company experienced a sequential revenue growth of 1.1%. The gross margin showed improvement, reaching 55.4%, and the company generated positive operating cash flow of $1 million. These financial results indicate a mixed performance for the company. The revenue dip contrasts with the positive cash flow and margin improvement, providing investors with a complex picture of the company’s current financial health. No analyst upgrades or downgrades were mentioned in conjunction with these earnings results. Investors may find these recent developments significant as they assess the company’s future prospects.

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