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Tech companies must address impact on natural resources, failure threatens firms long term resilience: WEF
Tech companies must address impact on natural resources, failure threatens firms long term resilience: WEF
New Delhi [India], January 14 (ANI): Global technology companies must urgently address their impact on natural systems and their dependence on natural resources, otherwise this will threaten the long-term resilience of the tech companies, highlighted a report by the World Economic Forum (WEF).
The report noted that technology now permeates every aspect of daily life. More than 1 trillion semiconductors are sold every year and are used across smartphones, cars and modern equipment. Over 11,000 data centres are currently operational worldwide.
The sector is expected to continue growing strongly, driven by artificial intelligence, cloud computing, high-performance electronics and innovations such as quantum computing.
However, the report cautioned that this growth comes with a substantial nature footprint. Semiconductor manufacturing alone consumes over 1 trillion litres of freshwater annually, along with large quantities of metals and critical minerals. Data centres draw more than 60 gigawatts of energy, equivalent to California's peak power needs.
At the same time, around 60 billion kilograms of electronic waste are generated each year, with less than a quarter being recycled.
According to the WEF, failure to address these impacts could threaten the technology sector's near-term licence to operate and long-term resilience.
It stated, "Failure would threaten tech's near-term licence to operate and long-term resilience. Since May 2024, USD 64 billion of data centre projects in the US have been blocked or delayed due to local concerns, mostly about demands on natural resources and power".
The report stressed that adopting nature-positive strategies can also unlock financial opportunities, including recovery of metals for new products and cost savings from reduced power and water use.
It shared priority action areas for companies, including advancing resilient and restorative water use.
The report also advised the companies to adopt the methods of mitigating pollution through circular practices, tackling non-power operational and embodied greenhouse gas emissions.
The forum also noted that promoting land stewardship and restoration, and powering operations sustainably will help in reducing the impacts of the tech companies on the natural resources.
The report also called for deeper engagement with supply chains and proactive external engagement to support science-based policymaking through transparent reporting and responsible value chain practices. (ANI)
Source: LiveMint
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