UNCTAD highlights environmental costs of digital transformation

While digitization undeniably drives global economic growth, its environmental repercussions are becoming increasingly severe. The latest “Digital Economy Report 2024” by the United Nations Trade and Development (UNCTAD) serves as a wake-up call, urging us to confront the environmental consequences of our digital lifestyles.

The report warns that rapid digitization comes at a significant environmental cost. The production, usage, and disposal of digital devices and infrastructure contribute heavily to greenhouse gas (GHG) emissions, resource depletion, and e-waste.

While highlighting the economic benefits and enhanced connectivity of technological advancements, the UNCTAD report underscores the pressing environmental challenges accompanying this growth. Let’s take a look at the key figures.

Environmental impact of digitization

• The information and communications technology (ICT) sector’s carbon footprint in 2020, estimated at between 0.69 and 1.6 gigatons of CO2 equivalent emissions, accounted for 1.5% to 3.2% of global GHG emissions – at the upper range, slightly below the entire shipping industry’s contribution to CO2 emissions.
• The production of a single 2 kg computer requires the extraction of a staggering 800 kg of raw materials.
• The production of minerals essential for the digital transition, such as graphite, lithium and cobalt, is projected to surge by 500% by 2050.
• Data centers consumed an estimated 460 TWh of electricity in 2022, with consumption expected to double by 2026.
• Digital-related waste increased by 30% between 2010 and 2022, reaching 10.5 million tons globally.
• Developed countries generate 25 kg of digital waste per person, compared to less than 1 kg in developing countries and just 0.21 kg in least developed countries (LDCs).
• Only 24% of digital waste was formally collected globally in 2022, with a mere 7.5% collection rate in developing countries.

As we delve further into the digital economy, one sector stands out for its rapid growth and profound impact: e-commerce. In the coming weeks, we will be sharing UNCTAD’s recommendations for fostering sustainable digital commerce, along with success stories from companies making impactful changes.

Stay tuned — check out our blog regularly and follow us on social media to catch every installment of this series!

You can download the entire UNCTAD report for free here.

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• Our free e-book “ESG – It is our responsibility”: everything you need to know now about ESG (Environmental, Social and Corporate Governance) and how you can meet your responsibilities.