Digital Sector’s Green Shift Gathers Pace— But Emissions Continue to Rise

A joint 2025 report by the International Telecommunication Union (ITU) and the World Benchmarking Alliance (WBA), Greening Digital Companies, presents a nuanced picture of environmental progress across the digital sector. While sustainability initiatives are expanding, overall emissions continue to climb, particularly in data-intensive and AI-driven firms. In 2023, 200 of the world’s largest digital companies consumed 581 terawatt-hours (TWh) of electricity—2.1% of global demand—and accounted for approximately 0.8% of total global energy-related CO₂ emissions. This makes their collective footprint comparable to the combined emissions of Argentina, Bolivia, and Chile.

Despite rising awareness, only 166 companies disclosed Scope 1 and 2 emissions, and just 102 reported full Scope 3 inventories. Notably, emissions from AI-focused firms surged by 150% between 2020 and 2023. Global data centre electricity use increased by an average of 12% annually. Renewable energy uptake is growing: 23 companies operated on 100% renewable electricity in 2023, up from 16 in 2022. Nearly half the companies studied have set net-zero targets, though only one—SAP—has a 2030 target validated by the Science Based Targets initiative. Third-party verification is also becoming more common, with 50 companies commissioning external audits and 49 releasing standalone climate reports.