Digital and climate transition? Let’s talk about it!

By charlotteLow carbon transition

Some background

The telecommunications and digital sector has a significant impact on the environment due to the increasing demand for energy to power data centers, telecommunications networks and digital devices.

Indeed, the last two decades have seen the rise of IT and digital services such as online data storage (cloud services). This technological approach has become essential for companies of all sizes and from all sectors, not only to manage data storage and backup, but also to enable workers to collaborate seamlessly and flexibly with stakeholders. However, the cloud sector consumes about 200 TWh per year worldwide, or about 1% of total global electricity demand in 2018 (1) and about 2% in 2022 (2).

What responsibility for the companies of the sector?

Companies in this sector have a responsibility to reduce their carbon footprint in order to make a significant contribution to the fight against climate change. This commitment to climate change is first and foremost a contribution to corporate social responsibility, making the company an agent of change. Stakeholders such as investors, customers and employees expect companies to take concrete measures to reduce their environmental impact, notably by reducing greenhouse gases. In addition to the environmental aspect, a company that commits to the transition now will benefit from significant cost savings and market opportunities; a competitive advantage that should not be overlooked.

The sector’s GHG emissions do not only come from the production of the electricity consumed but also from the production of electronic equipment.

Transparency, a principle rarely respected

When we look in detail at the GHG emissions of digital companies, we notice that the calculation of scope 3 emissions (indirect emissions linked to the organization’s value chain) are generally only declared on a voluntary basis. They are grouped together in the global declaration of emissions by the large cloud service providers (notably Google, Amazon, Microsoft) but there is a lack of transparency in the market. This is due to the sustainability reports aggregated by organizations that do not provide the necessary data to properly explain their environmental footprint.

  • Take action now!

It is essential to address the issue of climate change in your business strategies today. There are various solutions to reduce the sector’s GHG emissions, including the use of renewable energy sources, optimizing your data centers (by reducing carbon intensity, water consumption, and considering the lifespan of data center equipment) and reducing energy consumption. Raising awareness among your employees is a way to catalyze your teams and unite them around a common project.

Making a public commitment to the SBTi initiative by setting reduction targets for the ICT sector3 is a critical step in maintaining your competitive advantage. By adopting more sustainable practices, companies can help protect the environment and create a more sustainable future.

If you would like to learn more about this topic or receive support in decarbonizing your business, our teams are available to meet your needs and build your GHG reduction strategy together.

Will you be the next company to begin or continue your climate transition?

(1) https://www.nature.com/articles/d41586-018-06610-y

(2) https://energydigital.com/technology-and-ai/how-data-centers-can-reduce-their-carbon-footprint

Authors

Ernesto Rodriguez-Sanchez

Ernesto Rodriguez-Sanchez

Henri Gilmant

Charlotte Hulin

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