New Delhi (ABC Live): The digital sector is a major driver of global economic growth and innovation. However, its rising environmental impact calls for urgent climate accountability. The 2025 edition of the “Greening Digital Companies 2025” report by the International Telecommunication Union (ITU) and World Benchmarking Alliance (WBA) offers an in-depth analysis of greenhouse gas (GHG) emissions, energy consumption, and climate pledges of 200 leading digital companies. Therefore, this article critically evaluates the findings and uses data analysis to reveal gaps, trends, and key sectoral insights.

Scope 1, 2, and 3: Mapping the Sector’s Carbon Footprint

According to the “Greening Digital Companies 2025” report, operational emissions (Scope 1 and 2) increased by 1.4% from the previous year, reaching 297 million tCO2e. This figure accounts for roughly 0.8% of global energy-related emissions. Even more concerning, Scope 3 emissions—those originating across the entire value chain—constitute 84% of the sector’s total carbon footprint.

• Top Scope 3 Categories include:
  • Use of sold products: 57.6%
  • Purchased goods and services: 23.7%
  • Capital goods: 5.6%

As a result, the report emphasises the urgent need for accurate Scope 3 reporting and decarbonising supply chains.

Sector-Specific Emissions: Who Pollutes the Most?

Emissions vary significantly across digital subsectors. For instance:

• Electronics contributes the most, with 900.4 MtCO2e, due to energy-intensive manufacturing.
• Telecommunications has the highest Scope 2 emissions (112.5 MtCO2e), primarily from network energy use.
• IT Software & Services remains electricity-dependent due to data centre operations.

Consequently, these figures highlight the necessity for sector-specific climate strategies. Moreover, they illustrate how emissions responsibilities differ across business models.

Electricity Use: Powering the Digital World

In 2023, the companies featured in the “Greening Digital Companies 2025” report consumed 581 TWh of electricity—about 2.1% of global electricity demand.

• Top 10 companies used over 51.9% of this total.
• Regional breakdown:
  • North America: 200 TWh
  • East Asia & Pacific: 180 TWh
  • Europe & Central Asia: 140 TWh

However, renewable electricity adoption is inconsistent:

• Europe leads with 75%
• North America follows at 60%
• East Asia trails at 30%, due to fossil fuel reliance

Geographic disparities in green energy adoption must be addressed. Additionally, global cooperation could play a key role in closing this energy transition gap.

Greening Digital Companies 2025: Net-Zero Commitments and the Ambition Gap

Out of the 200 companies studied:

• 92 have pledged to achieve net-zero emissions
  • 9 target 2030
  • 42 target 2040
  • 41 target 2050

Despite this, only 18% of digital sector emissions are covered by SBTi-approved targets. Furthermore, none of the top 10 emitters have validated targets. Therefore, the gap between ambition and real action remains wide. Notably, while the pledges sound promising, they often lack binding mechanisms or third-party validation.

Transparency Trouble: Gaps in Data and Disclosure

The report reveals serious data gaps:

• Just 102 companies report all three scopes of GHG emissions
• Only 50 conduct third-party verification
• Merely 49 published CDP-aligned disclosures (CDP website)

Consequently, climate transparency remains weakest in East Asia, Latin America, and Africa. For this reason, improved regulatory frameworks and industry-wide standards are essential.

AI and Energy: A New Frontier in Emissions

Another key insight from the “Greening Digital Companies 2025” report involves the rapid rise of AI energy usage. AI data centres now consume electricity comparable to heavy industry. For example, in 2023, electricity use in AI chip manufacturing rose by more than 350%, mainly in East Asia.

Therefore, regulating AI-related emissions should be a priority for the sector. In addition, companies must proactively design more energy-efficient AI models and infrastructure.

Policy and Practice: What the Sector Should Do Next

To close the gap between ambition and impact, the report recommends the following:

1. Mandatory Scope 3 Emission Reporting
2. Adoption of Absolute, Not Intensity-Based, Targets
3. Universal Third-Party Verification
4. Accelerated Renewable Energy in Emerging Markets
5. AI Infrastructure Guidelines to Limit Emissions

Furthermore, aligning with international climate goals requires synchronised policy and industry collaboration.

Conclusion: From Words to Action

The “Greening Digital Companies 2025” report stands out through its transparency, science-based benchmarks, and focus on the digital sector. However, data shows that emissions continue to rise and few companies are taking near-term action.

To remain on a 1.5°C pathway, digital companies must shift from pledges to performance. Only through verified data, ambitious short-term targets, and systemic policy support can digital transformation become truly green.

Explore more in our related piece: AI and Sustainable Infrastructure.

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