Digital technology is often seen as a tool for enhancing efficiency and innovation, but its impact on the climate may be underestimated. A study published in the journal Communications Sustainability points out that in 2021, the digital industry contributed approximately 4.1% of global greenhouse gas emissions. However, most of these emissions are not recorded by existing accounting standards or official climate assessments.
An international research team systematically calculated emissions in the global supply chain of digital technology based on data from 2010 to 2021, covering direct, upstream, and downstream emissions from hardware, IT services, and communication infrastructure. The study found that 77% to 87% of emissions occur before the use or supply of digital technology, primarily from production processes in the global supply chain. These upstream emissions are rarely reported by companies.
Co-author Stefanie Kunkel from RIFS explained: "The international standard, the Greenhouse Gas Protocol, distinguishes three scopes: Scope 1 includes emissions directly generated by the reporting company, such as through chemical use or energy generation. Scope 2 covers indirect emissions from purchased energy, such as electricity. Finally, Scope 3 covers all other indirect emissions along the value chain, such as from raw material extraction, transportation, or subsequent product use. The problem is that in many parts of the world and for most companies, reporting Scope 3 emissions is voluntary, so many companies do not implement it adequately." National climate statistics typically use production-based accounting methods, which capture emissions from production processes but do not attribute them to the location of consumption.
The study also showed that 42% of digital emissions are attributed to other economic sectors, such as automotive engineering, mechanical engineering, or financial services, rather than the digital industry. Kunkel added: "Whether emissions from digital technology production are reported as 'digital emissions' or attributed to the climate footprint of other industries depends on how these emissions are allocated in climate statistics." Currently, digital emissions are often hidden within the footprints of other sectors.
While emissions from traditional hardware production have slightly declined, emissions from IT services have increased by over 60% since 2010, driven mainly by growing demand for cloud applications, computing power, and data-intensive services. The rapid development of generative AI may exacerbate this trend.
Regional distribution shows imbalances, with China being the largest producer and exporter of digital emissions, while Europe and the United States import a significant portion of their digital carbon footprint through global supply chains. The authors suggest that climate policy should give more consideration to emissions caused by the consumption of goods outside the producing country.
Simply improving data center efficiency and reducing energy consumption is insufficient to mitigate the climate impact of digital technology. The key is to reduce emissions throughout the entire value chain, including its use as a component in other products and services. Addressing cross-border environmental impacts requires transparency, clear accountability, and cooperation between companies and governments in global supply chains. Potential measures include the EU Carbon Border Adjustment Mechanism, as well as promoting durable, reusable hardware and a more environmentally conscious attitude toward digital applications.
