Sustainable development in the information and communications technology (ICT) sector by 2030 faces serious challenges. One of the most pressing is the rise in carbon emissions, which could hinder progress and slow momentum unless urgent actions are taken to mitigate these threats.
Despite the strides made in bridging the digital divide, particularly in connecting the 2.6 billion people who remain offline, carbon emissions remain a persistent obstacle. The global ICT regulatory body, the International Telecommunications Union (ITU), has expressed deep concern over the issue. In clear terms, the ITU warns that without swift and decisive measures, the dream of sustainable ICT development could remain unrealised.
A particular area of concern is artificial intelligence (AI), which, while playing a pivotal role in the growth of the ICT sector, is contributing to rising emissions. “Advances in digital innovation, especially artificial intelligence (AI), are driving up energy consumption and global emissions,” said ITU secretary-general, Doreen Bogdan-Martin. “While more must be done to shrink the tech sector’s footprint, the latest Greening Digital Companies report shows that industry understands the challenge – and that continued progress depends on sustaining momentum together.”
On June 5, 2025, in Geneva, Switzerland, the ITU released its latest findings, stating that carbon emissions from the tech sector have continued to rise in recent years. This increase is driven by rapid developments in AI and expanding data infrastructure. The findings, published in the Greening Digital Companies 2025 report, were a joint effort between the ITU and the World Benchmarking Alliance (WBA). The report evaluates greenhouse gas (GHG) emissions, energy consumption and climate commitments of 200 leading digital companies as of 2023.
While the report calls on digital companies to curb their environmental footprint, it also highlights encouraging signs of progress. Globally, more companies are setting emissions targets, sourcing renewable energy, and aligning their goals with science-based frameworks.
One of the key findings is that electricity consumption by data centres, which power AI and other digital operations, grew by 12 per cent annually from 2017 to 2023. This growth rate is four times faster than the global increase in electricity usage. Moreover, four leading AI-focused companies experienced a 150 per cent average increase in operational emissions since 2020. These emissions, known as ‘Scope 1’ and ‘Scope 2,’ reflect the urgent need to address AI’s growing environmental impact.
Altogether, the greenhouse gas emissions from the 166 digital companies covered in the report accounted for 0.8 percent of all global energy-related emissions in 2023. Meanwhile, electricity consumption by 164 reporting companies amounted to 2.1 percent of global use, totaling 581 terawatt-hours (TWh), with just 10 companies responsible for half that figure.
“Digital companies have the tools and influence to lead the global climate transition, but progress must be measured not only by ambition, but by credible action,” said director of research and digitisation at WBA, Lourdes O. Montenegro. “This report provides a clear signal to the international community: more companies are stepping up, but emissions and electricity use continue to rise.”
Director of ITU’s telecommunication development bureau, Cosmas Zavazava emphasised the significance of the report, calling it a vital tool for monitoring the tech sector’s climate footprint. “Despite progress, greenhouse gas emissions continue to rise, underscoring the urgent need for science-aligned, transparent, and accountable climate strategies,” he noted. The bureau is currently collaborating with regulators, academics, statisticians, and industry experts to define indicators that support national GHG monitoring and informed policy-making through the Expert Group on Telecommunication/ICT Indicators.
As the COP30 UN climate conference draws near, ITU’s Green Digital Action initiative aims to ensure that digital technology’s environmental impact is fully represented in updated climate pledges and adaptation plans.
Despite the continued rise in emissions, the Greening Digital Companies 2025 report shows some positive trends. Eight companies scored above 90 percent in the report’s climate commitment assessment, an increase from three the previous year. This assessment measures transparency in data disclosure, target-setting, and performance.
For the first time, the report includes data on companies’ progress toward their stated net-zero goals. Nearly half of the assessed companies have committed to achieving net-zero emissions, with 41 setting a 2050 target and 51 aiming for earlier deadlines.
Additional highlights from the report include:
* An increase in renewable energy use, with 23 companies operating entirely on renewable energy in 2023, up from 16 in 2022.
* A rise in standalone climate reports, with 49 companies now releasing dedicated environmental reports.
* More companies publishing targets for Scope 3 emissions, which include indirect emissions from supply chains and product usage, with numbers rising from 73 to 110.
The report calls for bold, immediate, and collaborative action, recommending that digital companies strengthen climate data verification, publish transition action plans, disclose the environmental footprint of their AI operations, collaborate with other sectors, and accelerate the adoption of renewable energy.
A recent industry analysis emphasised the swift expansion of generative AI. Within two months of its launch in November 2022, OpenAI’s ChatGPT had gained 100 million active users. This rapid growth prompted tech giants to accelerate their own AI product development. Commentators compared the rise of generative AI to transformative moments in history like the industrial revolution, the spread of electrification and even the discovery of fire.
While the true impact of generative AI remains to be seen, one thing is already clear: AI’s environmental footprint is significant and growing. AI systems consume vast amounts of electricity, especially when powered by non-renewable energy. Additionally, they use millions of gallons of fresh water for cooling data centres and contribute indirectly to environmental stress through the production and maintenance of high-performance hardware.
Despite the potential of AI to contribute to climate solutions, there is growing concern that its environmental costs may outweigh the benefits. Policymakers, environmental groups and international institutions are now taking steps to hold the tech industry accountable. Massachusetts Senator, Edward Markey recently co-sponsored legislation requiring the U.S. government to assess AI’s environmental impact and establish a standardised reporting framework. Similarly, the European Union’s AI Act, passed last week, mandates that high-risk AI systems – including foundational models like ChatGPT – disclose energy use, resource consumption and lifecycle environmental impacts. The law will take effect in 2026.
These efforts are part of a broader international movement to align digital innovation with sustainability goals. In September 2015, world leaders adopted the 2030 Agenda for Sustainable Development at the United Nations Sustainable Development Summit. This framework, which builds on the Millennium Development Goals, includes 17 Sustainable Development Goals (SDGs) and 169 specific targets to be achieved by 2030.
To track progress toward these goals, the United Nations Statistical Commission established the Inter-agency and Expert Group on SDGs (IAEG-SDGs) in March 2015. This group, composed of Member States and supported by international agencies, developed a global indicator framework to monitor development outcomes.
By March 2016, the statistical commission approved the framework, which includes 132 indicators designed to help governments identify challenges, monitor trends and guide policy decisions. This data is crucial to efforts aimed at ending poverty and hunger, protecting the planet, reducing inequality, and building peaceful, just and inclusive societies.
With digital transformation accelerating across every sector, sustainable development hinges on the ability of ICT to innovate responsibly. That means managing the environmental costs of progress, especially when it comes to AI and data infrastructure. The world is watching, and the tech industry must step up to ensure that digital growth aligns with the global commitment to a sustainable future.
