A new report from the World Economic Forum suggests that the tech sector can play a key role in driving a nature-positive transition, an approach that could lead to significant financial gains.
The growth of data centres, the semiconductor industry, and the hardware to power the tech revolution has never been greater, nor has the sector’s reliance on nature, in particular water, energy and natural resources, the Forum said in its Nature Positive: Role of the Tech Sector report.
By embracing a nature-positive approach, the tech sector has the potential to deliver up to $800 billion in cost savings and revenue upside across its value chain, it added, and ensure a stable future for the industry.
“In a sector that is growing fast, it is important that we address the ways in which the technology industry depends on and impacts nature,” commented Tim Christophersen, vice president of climate action at Salesforce.
“No individual company will be able to solve nature-related risks and impacts on their own – we must come together from all points within the technology value chain to build resilience.”
The World Economic Forum has identified seven key actions that the technology sector can take to generate nature-positive benefits across its value chain, as well as reduce its impact on nature.
1. Advance resilient and restorative water use
Many companies in the tech sector are beginning to assess water risks at operational sites and within supply chains. Some semiconductor producers are already recycling large shares of wastewater, while other firms are investing in watershed replenishment or efficiency initiatives.
2. Mitigate pollution and pursue circularity
Tech sector firms are increasingly monitoring waste streams and extending the lifespan of equipment to limit e-waste. Many are also integrating circular design principles into new products.
3. Tackle non-power greenhouse gas emissions
Non-power greenhouse gas emissions – such as those in semiconductor manufacturing – are increasingly being monitored, with preventative measures being implemented to track gases with high global warming potential. Some firms are also using carbon credit programmes to mitigate emissions that cannot yet be eliminated.
4. Promote land stewardship and restoration
While land-use considerations are less prominent in the tech sector, many firms are locating facilities away from areas with high ecological value, using previously developed land where possible. In addition, many businesses are also engaged in biodiversity and ecological restoration efforts.
5. Power operations sustainably
While a new data centre can be built in 18 months, “building new [power] transmission lines can take four to eight years,” according to IEA executive director Fatih Birol. Firms are responding to this by improving energy efficiency and expanding the use of renewable energy, with many investing directly in new power generation or transmission capacity.
6. Engage with your supply chain
Engagement with suppliers is on the increase, as businesses increasingly address environmental impacts beyond their own operations. As The World Economic Forum noted, it is now ‘common practice’ to request environmental certification from suppliers.
7. Engage externally and support policymaking
Businesses in the tech sector are increasingly reporting on nature-related risks, following frameworks such as the Taskforce on Nature-related Financial Disclosures, with some going a step further to actively shape policy. Sector-wide platforms, such as the European Green Digital Coalition, offer scope for further development in this area.
‘A nature-positive tech sector is both a necessity and an immense opportunity,’ the World Economic Forum noted. ‘As natural resources and ecosystems become increasingly critical to sector resilience and growth, tech companies can lead by integrating nature with their strategies, product design and procurement.’ Read more here.
