Strategic Intelligence: Net Zero Strategies in the Tech Industry

Strategic Intelligence: Net Zero Strategies in the Tech Industry

Summary

The journey to net zero has begun, yet far more work needs to be done. Tech companies have ambitious net zero targets but are far away from reaching actual net zero. This report analyzes 20 of the largest tech companies globally, including consumer electronics manufacturers, semiconductor companies, software companies, and hyperscale cloud providers. Big Tech has more ambitious net zero targets than most other industries, but their path to net zero remains unclear.

Key Highlights

• Data centers are a leading contributor to rising greenhouse (GHG) emissions. Growth in artificial intelligence (AI) has significantly increased the demand for data processing capabilities and capacity, leading to the expansion of data centers globally. These data centers consume vast amounts of energy and water and contribute significantly to CO2 emissions. Initiatives to make data centers more sustainable include increased use of renewable energy, new cooling technologies, and design optimization.
• The tech sector is over-reliant on carbon offsets. Carbon offsets have become one of the leading strategies for achieving net zero in the tech sector. However, carbon offset projects continue to face scrutiny from environmental activists over their effectiveness in reducing global emissions. Tech companies should avoid nature-based avoidance offset projects and only invest in quantifiable carbon removal projects.

• Net zero means cutting greenhouse gas emissions (GHG) to as close to zero as possible, with any remaining emissions then “offset”. Firms that achieve net zero emissions may say they are “carbon neutral”.

• Understand the impact of the ESG theme in the tech sector. Access the latest environmental and emissions data in the tech sector. Identify the leading net zero strategies tech companies are investing in. Understand what leading players are doing in the ESG theme.