As digital technologies rapidly advance and global demand for data and hardware surges, the carbon footprint of the tech sector is growing. This was revealed in a report co-authored by the International Telecommunication Union (ITU) and the World Benchmarking Alliance (WBA).
Despite a collective industry commitment to embrace both digital growth and environmental sustainability, the report shows that overall progress toward climate goals is faltering. Greenhouse gas (GHG) emissions and energy consumption are rising, while transparency and accountability in climate reporting remain areas of concern.
The Role of Digital Technologies in Sustainable Development
Digital technologies hold great potential for advancing socio-economic progress and addressing environmental challenges. They can improve weather predictions, optimize energy use, and integrate low-emission technologies, contributing to the United Nations’ Sustainable Development Goals (SDGs). However, to fully realize these benefits, the tech industry must also manage its own environmental impact. This includes addressing carbon emissions, energy and water consumption, e-waste, and the depletion of raw materials.
The ITU-WBA report, *Greening Digital Companies 2024*, offers insights and best practices to help tech companies accelerate their emissions reduction efforts, move toward low-carbon operations, and improve climate reporting.
Rising Energy Demand and Emissions in the Tech Sector
The report evaluates the emissions and energy use of 200 leading digital companies around the world. In 2022, 148 of these companies reported electricity consumption totaling 518 terawatt-hours (TWh), about 1.9% of the world’s total energy use. The 10 companies with the highest consumption levels, mostly based in East Asia and the United States, accounted for 51% of this total—a 9% increase from 2021.
A key finding is the imbalance between the benefits of digital growth and the environmental cost associated with it. While digital technologies can support sustainable development, they also contribute significantly to GHG emissions and rising energy consumption.
Understanding Scope 3 Emissions
The report introduces the first comprehensive overview of corporate value-chain emissions, often referred to as “Scope 3” emissions. These encompass emissions from material suppliers, outsourced production, and the use of products by consumers, including cell phones, computers, and AI systems. On average, Scope 3 emissions are six times greater than the combined Scope 1 (direct) and Scope 2 (indirect) emissions that companies are typically responsible for.
Calculating and managing Scope 3 emissions presents significant challenges. Many companies struggle with accurate data collection, double-counting, and inconsistent application of emission-allocation principles. This highlights the need for improved transparency and accountability in climate reporting.
The Impact of Emerging Technologies
The rapid development of emerging technologies like artificial intelligence (AI) further strains energy resources and adds to emissions. However, AI and other transformative technologies also offer potential solutions for sustainable development, such as optimizing resource use and improving environmental monitoring.
The report stresses that tech companies need to do more to manage the emissions associated with these technologies. Governments, too, play a crucial role by implementing monitoring frameworks and encouraging the transition to green energy.
The Path to a Green Digital Future
To help the tech industry meet its sustainability goals, *Greening Digital Companies 2024* underscores the importance of government intervention. This includes liberalizing energy markets, reducing bureaucratic hurdles, modernizing power grids, and investing in energy storage solutions. Renewable energy investment is particularly critical for supporting the tech sector’s efforts to balance innovation with sustainability.
Cosmas Zavazava, Director of the ITU’s Telecommunication Development Bureau, warned of the dire consequences if GHG emissions remain unchecked. Climate change, driven by rising emissions, could undo much of the progress achieved in sustainable development.
A Call for Action
The ITU urges the global tech industry to take greater responsibility for its own emissions. Through initiatives like Green Digital Action, the ITU aims to align the tech sector with global climate goals, encouraging companies to reduce their carbon footprints and adopt sustainable practices. This report serves as a roadmap for digital companies to balance growth with environmental responsibility, ensuring that the tech sector plays a leading role in combating climate change.
While the digital sector holds immense potential to advance sustainability, its growing environmental impact cannot be overlooked. Both industry and government must work together to manage emissions, reduce energy consumption, and foster a sustainable digital future.
