Tech Sector Growth Hinges on Sustainable Value Chains, Report

The technology sector could generate $800 billion in value by 2030 by focusing on nature, according to a World Economic Forum report. This is part of a larger potential $10.1 trillion opportunity for the private sector through nature-positive solutions. Most of the $800 billion is expected to come from energy and extractive activities, such as renewable energy expansion and circular manufacturing of electronics. Another significant portion is projected from infrastructure and building efficiency, with additional value from nature restoration and sustainable land use.

The tech sector is growing rapidly, driven by advancements in artificial intelligence, cloud computing, and other technologies, but its growth also has a considerable environmental impact, resulting in water use, pollution, waste, and greenhouse gas emissions. With over 1 trillion chips sold each year and a rising demand for data centers, which consume massive amounts of electricity, the environmental footprint of tech is significant. Semiconductor production alone uses over 1 trillion litres of water annually.

To address these environmental impacts, the report suggests adopting circular resource recovery practices and collaborating within mining and minerals supply chains. Investing in nature and aiming for sustainable, resilient business models can help companies manage risks and gain competitive advantages. The report outlines seven actions—focusing on water, pollution, land use, emissions, power, supply chain, and policy engagement—that tech companies can take to better manage their nature impacts.

The tech sector currently accounts for around 4% of global energy use. By enhancing energy efficiency, promoting renewable energy, and utilizing circular manufacturing, the sector can reduce its environmental impact. Innovative solutions, like liquid cooling in data centers, could significantly decrease emissions. The report emphasizes the urgency for the tech sector to embrace both economic growth and a nature-positive transition promptly.