ICT sector's role in climate change mitigation: An analysis of climate change performance and preparedness of 320 global ICT companies

Description

This report, produced jointly by CDP and IIM Bangalore, examines the preparedness of the ICT sector in addressing the challenges of climate change, the risks and opportunities it presents, best practices followed by leading companies, and emerging opportunities for the sector. The study is based on responses from 320 leading global ICT companies participating in the CDP climate change programme. The findings show that the ICT industry is largely aware of the urgency of climate change and views it both as a significant business risk and an opportunity. A majority of companies (63%) have board-level oversight of climate-related issues, with performance linked to both monetary and non-monetary incentives. Additionally, 81% of companies report a clear linkage between their business strategy and climate concerns, indicating growing recognition of climate strategy as a source of competitive advantage. However, several challenges persist, including limited understanding of climate risks, lack of consensus within management, resource constraints and difficult business conditions. Many firms are also increasingly engaging with policymakers, though 24% remain disengaged due to resource limitations or philosophical differences. Risk management practices are widespread, but only a small proportion (9%) have dedicated climate-specific frameworks, with most integrating climate risks into broader enterprise risk systems. Climate change is recognised both as a regulatory risk—through energy costs, carbon taxes and compliance requirements—and as a driver of opportunity, particularly in energy-efficient products and changing consumer behaviour. Encouragingly, 68% of firms have adopted emission reduction targets and 41% reported a reduction in absolute emissions, although rising emission intensity in some firms highlights the need for further improvements in energy efficiency and sustainable operations.

Publication Date

1-1-2014

Publisher

CDP and Indian Institute of Management Bangalore

Keywords

ICT, Climate change, Information and communication technologies

Source Link URL

https://6fefcbb86e61af1b2fc4-c70d8ead6ced550b4d987d7c03fcdd1d.ssl.cf3.rackcdn.com/cms/reports/documents/000/000/860/original/CDP-ICT-sector-report-2014.PDF?1472041398

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