Digitalization Meets Sustainability: Building a Smarter, Greener Future

As we advance in the digital age, a critical question emerges: Will our smart society also be a greener one? Digitalization and sustainability are two of the most pressing issues of our time, yet they often operate in silos. It’s time to bridge this gap and rethink how our technological advancements can align with our environmental goals.

The Overlooked Connection

How often do you use your smartphone each day? How often do you use it to watch a dog riding a skateboard or goats jumping over a high hurdle? (Looking at the screentime of my teenager kids, I assume the answer is "often"). But how often do you ask yourself how you can use this technology to make your and/or everybody's life more sustainable? Most of us don't connect these dots. And this disconnect extends to the highest levels of policy-making. Take the European Union, for example—the Digital Decade Strategy (see here ) focuses on technological advancement...

... while the Green Deal (see here ) aims to tackle climate change.

Are they connected? Is there a reference from one program to the other? No! Yet, these initiatives are largely developed in isolation from one another.

Digitalization should not be seen as an end in itself but as a powerful means to achieve broader goals like social justice and environmental sustainability. This raises a crucial question: Is digitalization helping to create a more sustainable society, or is it doing the opposite? Is digitalization part of the solution or part of the problem?

The Environmental Footprint of Digitalization

Let’s start by examining the environmental impact of information and communication technologies (ICT). The production of digital hardware for example is far from green. Most smartphones can carry roughly 80% of the stable elements on the periodic tables (see here ). The World Economic Forum states that while the combination of metals in a smartphone may vary, most smartphones can carry roughly 80% of the stable elements on the periodic table (see here ).

Additionally, the energy demands of digital devices and the underlying (cloud) infrastructure are substantial. In 2022, data centers and data transmission networks combined consumed approximately 500-700 TWh of electricity globally, representing about 1-3% of global electricity use (see here ). Estimates suggest that by 2030, the internet could use up to 20% of all global electricity and emit 5.5% of the world's carbon emissions (see here and here ). This energy consumption is predominantly powered by fossil fuels, which contributes to a significant share of global CO2 emissions. The environmental impact of maintaining and operating our digital infrastructure is far from negligible, challenging the notion that digitalization is inherently green.

Another source estimates that today's internet accounted for 800 TWH of global electricity in 2022, 2.5% of all global electricity. The same source attempted to construct a simple model for the future energy demands of the internet (see here ):

The takeaway? Digitalization is not as virtual as it seems—it has a very tangible, material impact on our planet. Our current approach is far from a circular economy; it's a linear model of extraction, use, and disposal. Therefore, digitalization IS part of the problem. But the good news: it also could become part of the solution... if we want to!

Unlocking the Potential of Digitalization for Sustainability

Despite these challenges, digitalization has the potential to significantly drive sustainability across various sectors by optimizing processes, reducing waste, and enabling more efficient use of resources. For instance, smart grids and energy management systems leverage digital technologies to optimize electricity distribution, reduce energy loss, and integrate renewable energy sources more effectively. Advanced analytics and IoT sensors help monitor and control energy usage in real-time, leading to more efficient energy consumption and reduced carbon footprints.

In the realm of sustainable supply chain management, digital tools such as blockchain and AI increase transparency and traceability, allowing companies to identify and mitigate environmental and ethical risks. Predictive analytics can optimize logistics, reducing fuel consumption and emissions by streamlining delivery routes and inventory management.

Smart agriculture is another area where digitalization drives sustainability forward. Precision agriculture utilizes digital tools like drones, satellite imagery, and IoT sensors to monitor crop health, optimize water usage, and reduce the need for chemical inputs, leading to more sustainable farming practices. Data-driven decision-making improves yield and efficiency while minimizing environmental impact.

Digitalization also plays a crucial role in promoting a circular economy and reducing waste. Digital platforms facilitate the sharing economy, extending the life cycle of products through reuse, recycling, and refurbishment. AI and machine learning enhance waste sorting and recycling processes, reducing landfill usage and promoting material recovery.

In urban settings, digitalization supports sustainable urban planning and the development of smart cities. Digital twin technology creates virtual models of cities to simulate and optimize urban planning, energy usage, and waste management. Smart city technologies, such as intelligent traffic management systems, reduce congestion, lower emissions, and improve air quality.

The shift towards remote work and digital collaboration is another example of digitalization driving sustainability. By enabling remote work and virtual meetings, digital tools reduce the need for commuting and business travel, which lowers carbon emissions and energy consumption. Cloud computing and digital collaboration tools streamline operations, reducing the need for physical office space and associated resource usage.

Energy-efficient buildings also benefit from digitalization. Smart building technologies use sensors and automation to optimize lighting, heating, and cooling, leading to significant energy savings and reduced carbon footprints. Building management systems continuously monitor energy usage and adjust operations to improve efficiency.

Water management is another critical area where digitalization contributes to sustainability. IoT sensors and data analytics optimize water usage in agriculture, industry, and urban settings, reducing waste and improving water sustainability. Smart water management systems detect leaks and inefficiencies in real-time, conserving water resources.

In transportation, digitalization supports the electrification and development of smart transportation systems. Digital technologies enable the management of electric vehicle (EV) charging networks, optimizing energy distribution and supporting the shift to cleaner transportation options. Intelligent transportation systems improve public transit efficiency, reducing reliance on individual car usage and lowering emissions.

Lastly, digitalization enhances sustainable product design. Digital simulation tools allow companies to design products with sustainability in mind, optimizing materials for reduced environmental impact and enhancing product life cycles. 3D printing can minimize waste in manufacturing by using additive processes rather than subtractive ones.

These examples illustrate how digitalization can be a powerful enabler of sustainability, driving efficiencies, reducing waste, and creating new opportunities for sustainable growth across various industries.

The Rebound Effect: Efficiency Meets Overconsumption

However, to make it a again a bit more complex, the reality is that digitalization often adds to rather than replaces traditional consumption. Even though Digital technologies are designed to enhance efficiency and convenience, they can sometimes lead to the "rebound effect," where increased efficiency paradoxically results in higher overall consumption. Here are some examples to illustrate this phenomenon:

Smart Home Devices

While smart thermostats are designed to optimize energy use, they may encourage users to heat or cool their homes more frequently. For instance, a person might use their smartphone to turn on the air conditioning before arriving home, leading to longer periods of climate control and potentially higher energy consumption.

LED Lighting

The introduction of energy-efficient LED bulbs has made lighting much more cost-effective. However, this efficiency may lead some consumers to leave lights on for longer periods or install more lighting fixtures, partially offsetting the energy savings.

Ride-Sharing Apps

Services like Uber and Lyft were intended to make transportation more efficient. However, studies have shown that they may increase overall vehicle miles traveled as people opt for convenient rides instead of walking, biking, or using public transit.

Electric Vehicles

While electric vehicles are more energy-efficient than traditional combustion engines, their lower operating costs may encourage owners to drive more frequently or for longer distances, potentially increasing overall energy consumption.

Cloud Storage

The ease and low cost of cloud storage have led to increased data hoarding. Users and businesses store vast amounts of unnecessary data, leading to higher energy consumption by data centers.

In each of these cases, the increased efficiency provided by digital technologies has led to changes in behavior or expectations that result in higher overall consumption or energy use. This rebound effect highlights the complex relationship between technological advancement and resource consumption, emphasizing the need for holistic approaches to sustainability that consider both efficiency improvements and consumption patterns.

So.... an now? What to do?

A comprehensive and strategic approach is essential, involving various stakeholders such as governments, businesses, technology providers, and individuals. A critical step is to develop clear policies and regulatory frameworks that promote the use of digital technologies for sustainable development. This includes setting standards for data privacy, cybersecurity, and the ethical use of AI, while also incentivizing digital innovation that supports environmental goals. Policies should further encourage the integration of renewable energy, sustainable transportation, and circular economy practices through digital solutions.

Investing in robust digital infrastructure and ensuring equitable access to digital tools and technologies is crucial. High-speed internet, IoT networks, and smart grids are foundational elements that enable digital solutions for sustainability. Addressing digital divides, especially in underserved and rural areas, will help ensure that the benefits of digitalization are accessible to all.

But it is also about all of us! Enhancing consumer awareness and engagement is vital. Digital platforms can educate the public about the environmental impact of their choices and promote sustainable behaviors like reducing energy consumption, recycling, and opting for sustainable products. Apps and online tools can empower consumers to make more informed, eco-friendly decisions.

Only together can we fully leverage digitalization to drive sustainability, creating resilient, efficient, and environmentally friendly systems and practices across all sectors of society.

The Road Ahead: Redefining Our Digital Future

As we look ahead, the question isn’t how we can develop more gadgets or smarter technologies but how we can better govern and guide digitalization toward positive outcomes. We need more than just technological advancements—we need human expertise, responsible application, and regulation to ensure that digitalization serves as a catalyst for sustainability.

Satya Nadella, CEO of Microsoft: “Digital technology, when applied the right way, has the potential to make things that are finite — like energy, our most precious resource, the environment — more sustainable.”

We together can reshape our digital landscape, not by pursuing endless innovation for its own sake but by aligning technology with our sustainability goals. A different kind of digitalization is possible—one that puts the planet first.