Digital, tech
& media

Sustainability experts for the digital, technology and media sectors

Our increasing reliance on the digital world is leaving its mark on the planet

The digital revolution has fundamentally transformed society and will be crucial in the battle against climate change. However, from the energy used by the vast, hidden infrastructure networks that power the internet to the finite natural resources required to manufacture hardware, our increased use of digital technologies also comes with a high environmental impact.

Investors, governments, clients and employees expect the tech industry to take action and improve environmental, social and governance (ESG) performance. From tech titans to emerging scale ups, momentum is growing across the sector, with ESG increasingly being incorporated into strategic planning. Accurate, transparent impact reporting anchored by credible climate commitments are fast becoming a business imperative.

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Tech businesses have a dual role to play within the societal transition to net zero. Firstly, the industry itself must minimise its own impact on the environment by drastically cutting GHG emissions across the entire value chain and investing in the nature-based solutions required to neutralise hard-to-abate emissions and tackle biodiversity issues.

Secondly, the industry can become an enabler of net zero for individuals and other businesses through technological innovation. Achieving net zero will require a fundamental shift in everything we do – from electric vehicles to carbon removal technologies, the industry is uniquely positioned to revolutionise other industries and solve global problems.

Tech giants such as Microsoft and Google are already making great strides on both of these fronts by putting ESG performance at the heart of their corporate strategies – the wider industry must now follow suit.

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Sustainability Issues

Identifying and addressing climate-related risks

Climate-related risks are now widely recognised as posing a serious and imminent threat to the global economy. Tech and digital companies therefore need to understand their exposure to climate risk. Whether it’s the damage to server farms and physical infrastructure caused by heat and fire, the impact of drought on data centre water demands, or challenges to supply chain resilience wrought by escalating severe weather scenarios; the climate crisis brings concrete consequences.

Investors are increasingly insistent that firms disclose the action they have taken to identify and address climate-related risks. The need to understand climate risk to business is now being given structure through TCFD. Mandatory TCFD reporting will capture all listed and large corporates by 2025, but any tech businesses seeking investment will need to demonstrate that ESG performance has been consider as investors become increasingly aware of the risks that climate change pose to investment portfolios.

Measuring a comprehensive carbon footprint

Measuring your carbon footprint is an essential component of any ESG strategy. Whilst many digital organisations may find their core operational emissions low by comparison to other industries, scope 3 emissions (that is carbon emissions which occur across the value chain) will be where the majority of a tech business's environmental impact will reside.

With fifteen scope 3 categories covering everything from business travel to product and software use, the lack of operational control and access to data can make measuring and managing scope 3 emissions a tricky business. Businesses need to establish an appropriate reporting boundary, which transparently accounts for a businesses holistic impact and engage with suppliers and partners to source the data to accurately report on and tackle those emission sources.

Setting a path to net zero

The IPCC have previously highlighted that achieving anything less than net zero emissions by mid-century will be insufficient if we are to avoid the worst impacts of climate change. Businesses have a huge role to play if this is to be achieved – that’s why over 704 global companies have already formally committed to a net zero target in line with a 1.5 C future.

Ambitious, robustly calculated targets are fundamental to any credible net zero commitment. Targets can drive innovation, ensure growth is sustainable and signal a businesses intent to take ESG seriously. That’s why many tech businesses are pushing the boundaries of corporate target setting, seeking to redefine what is deemed possible and establish the north star for net zero.

Client success Stories

Bunzl, the leading FTSE 100 company and global distributor defines its strategic sustainability framework for action.

Independent Television News (ITN) is a UK-based television production company, made up of two divisions: Broadcast News and ITN Productions.

Dentsu, the multinational media and digital marketing communications giant, shows commitment to reduce its global carbon footprint.

SECR

The Streamlined Energy and Carbon Reporting framework – SECR is a package of regulations published by the Department for Business, Energy and Industrial Strategy that came into effect from 1st April 2019. The first public disclosure will emerge in 2020, allowing companies a full year to collect the required data. Over 10,000 businesses will now have to comply with additional (or modified) energy and carbon reporting obligations from FY 2019/20 onwards.

Download our guide for expert insights on SECR.

Download our expert guide to SECR

Digital, tech and media
Sustainability Consultants

With a digital, technology and media sustainability team, Avieco is well placed to support your business, your impact, and your sustainability challenges, to help you identify what really matters to you in your journey to becoming sustainable.

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