"Cutting Value-Chain Emissions Critical to Achieving Net-Zero in Tech Sector, ITU-WBA Report Reveals"
By Gloria Sarauniya Usman
GENEVA, October 2024 – The carbon footprint of the global digital technology sector continues to expand in response to rising demand for hardware, network services, and emerging technologies, according to a new report by the International Telecommunication Union (ITU) and the World Benchmarking Alliance (WBA).
The report, Greening Digital Companies 2024, highlights a concerning trend: despite pledges to pursue both digital growth and environmental sustainability, greenhouse gas (GHG) emissions and energy consumption within the tech industry are rising. Transparency and accountability, crucial to tracking climate progress, remain insufficient across the sector.
"An effective green transition depends on digital companies leading by example," said ITU Secretary-General Doreen Bogdan-Martin. "This report is a key resource for understanding how to harness digital technology’s potential while advancing sustainability. Its findings are a clear call to action for leaders ahead of COP29's Digitalisation Day."
The digital sector plays a pivotal role in achieving the UN’s Sustainable Development Goals (SDGs), offering tools to enhance climate-change monitoring, optimize energy use, and integrate low-emission technologies. However, to truly support sustainable development, the industry must also address its own environmental impacts, such as carbon emissions, e-waste, and raw material depletion.
The report provides a detailed assessment of GHG emissions and energy use across 200 leading global digital companies. In 2022, 148 of these companies reported electricity consumption totaling 518 terawatt-hours (TWh)—equivalent to 1.9% of global electricity consumption. The top 10 consumers, located in East Asia and the United States, accounted for 51% of this energy use—a 9% increase from 2021.
For the first time, Greening Digital Companies 2024 offers a comprehensive overview of value-chain (Scope 3) emissions, which constitute the bulk of digital companies’ carbon footprints. These emissions stem from material suppliers, outsourced manufacturing, and the use of products like smartphones, computers, and AI applications. On average, Scope 3 emissions are six times higher than direct emissions (Scope 1) and indirect emissions from energy consumption (Scope 2).
Many companies struggle to accurately measure Scope 3 emissions due to challenges like inconsistent data from suppliers, double counting, and unclear attribution methods.
"Digital companies have a crucial role in the global fight against climate change," said Lourdes O. Montenegro, Director of Research and Digitisation at WBA. "This report provides essential insights on where the sector stands and highlights the need for urgent action."
The rapid adoption of artificial intelligence (AI) technologies is another pressing issue, as AI's energy demands are projected to increase significantly. However, the report also emphasizes that AI, along with other advanced technologies, could contribute to sustainability efforts if deployed effectively.
To accelerate the tech industry's transition to sustainability, the report calls on governments to implement stronger monitoring frameworks, support the availability of green energy, and modernize infrastructure. Measures like liberalizing energy markets, reducing permitting barriers, and investing in renewable energy and storage are also seen as critical steps.
Cosmas Zavazava, Director of ITU’s Telecommunication Development Bureau, underscored the importance of reducing GHG emissions for long-term development. "Unchecked climate change could reverse decades of development progress. Governments must work hand-in-hand with the tech sector to ensure that digital growth aligns with environmental responsibility."
This latest report reflects ITU’s broader effort to drive climate action within the global tech industry, urging companies to take responsibility for their emissions and adhere to technical standards that support global climate goals.
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