The International Telecommunication Union (ITU) and the World Benchmarking Alliance (WBA) said that the carbon footprint and energy consumption of the digital technology sector are growing with global demand for hardware, network services, data storage and emerging technologies. ITU and WBA noted this development in a new report.
    
Alongside commitments expressed across the industry to embrace both digital growth and environmental sustainability, the report, co-authored by both ITU and WBA, revealed an overall decline in progress towards climate goals.
   
According to it, Greenhouse gas (GHG) emissions and energy consumption in the global tech sector have increased, while transparency and accountability remain a challenge.
   
ITU said Greening Digital Companies 2024 offered insights and best practices to help tech companies worldwide accelerate their emissions reductions, achieve low-carbon operations, and improve climate reporting.
    
ITU Secretary-General Doreen Bogdan-Martin said: “An effective green transition needs digital companies to drive progress and lead by example. This report is an important tool for understanding where to focus efforts to maximise digital technology’s immense potential to advance sustainability in the face of climate change for the digital future we want. The report’s findings formulate a clear call for action for leaders gathering at the Green Digital Action meeting at COP29’s landmark Digitalisation Day.”
   
Balancing benefits and costs, the telecoms body noted that digital technologies offer numerous socio-economic benefits and can accelerate progress on the UN’s Sustainable Development Goals (SDGs).  ITU said technology could enhance weather predictions and climate-change monitoring, optimise energy use, and help integrate low-emission technologies.
   
However, to advance sustainable development, the industry must monitor and address its environmental challenges, including carbon emissions, energy and water consumption, e-waste, and raw-material depletion.
  
Greening Digital Companies 2024 evaluated the greenhouse gas emissions and energy use of 200 leading digital companies around the world. According to ITU, of the 200 companies covered in the report, 148 reported electricity consumption totaling 518 terawatt-hours (TWh) in 2022, about 1.9 per cent of the world total. The 10 companies with the highest consumption levels – all headquartered in East Asia or the United States – consumed 51 per cent of this total, nine per cent higher than in 2021.
   
Scope 3 emissions include everything from material suppliers and outsourced device production to the use of a company’s end-products by consumers. Such end-products range from cell phones and computers to search engines and AI chatbots.
   
On average, these emissions are six times greater than the combined Scope 1 and Scope 2 emissions that a company produces itself or is responsible for indirectly, according to the report.
  
Many companies struggle to accurately calculate and attribute their scope three emissions, with common challenges including lack of data from suppliers, double counting, and inconsistent application of emission-allocation principles.
   
Director of Research and Digitisation at the WBA, Lourdes Montenegro, said: “Digital companies need to do their part in the fight against climate change.
Managing emissions from emerging technologies, ITU said the rapid growth of artificial intelligence (AI) technologies will further strain energy resources and keep adding to emissions.
    
The report also noted the contributions that AI and other transformative technologies can make to support sustainable development. To help digital companies meet sustainability goals, Greening Digital Companies 2024 underscored the role of governments in implementing monitoring frameworks and accelerating the availability of green energy.
    
Director of the ITU’s Telecommunication Development Bureau, Cosmas Luckyson Zavazava, said: “From the development point of view, it is increasingly important for industry players to more closely monitor their greenhouse gas emissions and act to reduce emissions and energy use.
   
“GHG impacts can be devastating and include extreme and changing weather patterns and rising sea levels. If left unchecked, climate change will undo part of the development progress of the past. Governments can support the tech industry’s efforts to balance innovation with sustainability, fostering a twin transition towards digital growth and environmental responsibility.”