ESG Imperative in Information Technology
Navigating Sustainability, Social, and Governance Challenges in the IT Sector
Summary
The IT sector faces a decarbonisation paradox: it enables low-carbon solutions economy-wide while being the fastest-growing source of electricity demand. Global data center electricity consumption reached 415 TWh in 2024, rising 12% a year, four times faster than overall grid growth.
Scope 3 value-chain emissions dominate the sector, representing over 90% of total footprint at leading firms like TCS (93.2%) and Microsoft (97.3%). Yet only 40% of firms with Science-Based Targets have validated Scope 3 goals, and just 22% of Fortune 500 tech firms disclose detailed decarbonisation roadmaps.
This white paper covers environmental impact and energy trends, social dimensions and workforce, governance and the regulatory environment, sustainable finance and capital markets, and ESG leadership benchmarking of Infosys, TCS, Microsoft, Google, and Apple.
Environmental Impact and Energy Trends: data center energy demand, AI's impact on power use, hardware circularity, e-waste, and renewable energy procurement.
Social Dimensions and Workforce: gender diversity, remote work, supply chain labor risks, and digital inclusion across the global IT workforce.
Governance and Regulatory Environment: ESG-linked executive pay, AI governance, board diversity, and the CSRD, BRSR, and SEC disclosure landscape.
Sustainable Finance and ESG Leadership Benchmarking: green bonds, hyperscaler capex, and how Infosys, TCS, Microsoft, Google, and Apple compare on Scope 3 and renewables.
Full Whitepaper
Read the complete methodology, frameworks and findings in the PDF.
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