ESG Sectors: Tech ESG

Tech ESG leaders are at the apex of innovation and sustainability. Setting ESG goals is critical for this forward-thinking sector:


Client attraction and retention

Stakeholder trust: Amidst concerns over the influence of “Big tech”, sustainability goals helps showcase companies a moral compass – fostering trust among customers, investors, employees and other stakeholders

Long-Term Viability: As the carbon effects of heightened data usage become more apparent, it is clear that a carbon transition plan is critical for tech firms

Business model resilience: Close management of product governance matters can make the firm more robust to hacking, data leakage and other highly disruptive events

tech esg

What to Expect: The Future of ESG in Tech

The ESG landscape in the tech sector is ever-evolving, and staying ahead is essential. Key trends in particular to monitor.

Regulatory Evolution: Anticipate emerging regulations surrounding ESG in tech. Governments are increasingly holding tech companies accountable for their societal and environmental impact.

While firms do not typically publicise major targets in this area, they may announce goals around “zero tolerance” for compliance failures. Or specific goals resulting from regulatory areas of focus

Tech for Good: Tech companies will continue leveraging their resources to tackle global challenges, from climate change to social justice and education.

Examples of tech for good targets and KPIs include social and environmental impact metrics, diversity and inclusion metrics, philanthropic giving, partnerships for impact, innovation for sustainability, and employee engagement.

Incorporating tech for good targets and KPIs into a tech company’s strategy goes beyond corporate social responsibility; it becomes a strategic imperative. These metrics can shape the company’s innovation, resource allocation, competitive positioning, and reputation, ultimately driving long-term sustainability and impact in areas critical to society and the environment.

ESG Targets in the Tech Sector

Tech companies are zeroing in on specific ESG targets that align with their unique challenges and aspirations. Some ESG examples of critical areas include:

Environmental Sustainability: Tech companies are setting ambitious goals to reduce their carbon footprint. This includes transitioning to renewable energy sources, minimizing electronic waste, designing energy-efficient products, and improving the circular economy of products.

Common targets can include setting measurable greenhouse gas emission reduction goals and investing in sustainable energy.

ESG and DEI: Major employers such as tech companies are encouraged to address diversity and inclusion (DEI) issues through inclusive hiring, diverse leadership development, and nurturing inclusive workplace cultures. Companies set specific and measurable targets which can include diversity, equity, inclusion, and training.

ESG and AI: As artificial intelligence becomes more prevalent, ensuring its ethical use is paramount. Tech firms are investing in research and development to create AI systems that are fair, transparent, and free from bias. 

Facilitator of new energy solutions: New tech products can potentially improve energy usage and reduce carbon impact through innovations like AI dynamic power management. These cutting-edge solutions harness AI’s capabilities to optimize energy consumption in various sectors, from data centers to transportation, ultimately contributing to a greener and more sustainable future.

Measurable targets could be related to R&D investments in climate tech and specific energy efficiency targets associated with new products

Supply Chain Sustainability: ESG extends to supply chains, ensuring products are ethically and sustainably sourced.

Examples of supply chain sustainability targets include reducing carbon emissions, sustainable sourcing, labor rights compliance, waste reduction, energy efficiency, water management, transparency, product lifecycle assessment, responsible packaging, and more

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