NewKerala.com

Tech Giants Face Nature Crisis: WEF Warns of Resource Strain & E-Waste

The World Economic Forum warns that the technology sector's massive and growing dependence on natural resources threatens its own long-term resilience. Semiconductor manufacturing consumes over a trillion litres of freshwater annually, while data centers draw immense power and electronic waste piles up with low recycling rates. Failure to address these impacts has already led to billions in delayed projects due to local concerns over resource demands. The report urges companies to adopt nature-positive strategies, including circular practices and sustainable power, which can also unlock financial benefits.

Key Points: WEF: Tech Sector's Resource Use Threatens Its Own Resilience

  • Semiconductor manufacturing uses 1T+ litres of water yearly
  • Data centers need power equal to California's peak
  • Only 25% of 60B kg annual e-waste is recycled
  • Nature-positive strategies can unlock financial opportunities
  • $64B in US data center projects delayed over resource concerns
2 min read

Tech companies must address impact on natural resources, failure threatens firms long term resilience: WEF

WEF report warns tech growth's huge water, energy, and e-waste footprint threatens sector's license to operate. Calls for nature-positive strategies.

"Failure would threaten tech's near-term licence to operate and long-term resilience. - World Economic Forum"

New Delhi, January 14

Global technology companies must urgently address their impact on natural systems and their dependence on natural resources, otherwise this will threaten the long-term resilience of the tech companies, highlighted a report by the World Economic Forum.

The report noted that technology now permeates every aspect of daily life. More than 1 trillion semiconductors are sold every year and are used across smartphones, cars and modern equipment. Over 11,000 data centres are currently operational worldwide.

The sector is expected to continue growing strongly, driven by artificial intelligence, cloud computing, high-performance electronics and innovations such as quantum computing.

However, the report cautioned that this growth comes with a substantial nature footprint. Semiconductor manufacturing alone consumes over 1 trillion litres of freshwater annually, along with large quantities of metals and critical minerals. Data centres draw more than 60 gigawatts of energy, equivalent to California's peak power needs.

At the same time, around 60 billion kilograms of electronic waste are generated each year, with less than a quarter being recycled.

According to the WEF, failure to address these impacts could threaten the technology sector's near-term licence to operate and long-term resilience.

It stated, "Failure would threaten tech's near-term licence to operate and long-term resilience. Since May 2024, USD 64 billion of data centre projects in the US have been blocked or delayed due to local concerns, mostly about demands on natural resources and power".

The report stressed that adopting nature-positive strategies can also unlock financial opportunities, including recovery of metals for new products and cost savings from reduced power and water use.

It shared priority action areas for companies, including advancing resilient and restorative water use.

The report also advised the companies to adopt the methods of mitigating pollution through circular practices, tackling non-power operational and embodied greenhouse gas emissions.

The forum also noted that promoting land stewardship and restoration, and powering operations sustainably will help in reducing the impacts of the tech companies on the natural resources.

The report also called for deeper engagement with supply chains and proactive external engagement to support science-based policymaking through transparent reporting and responsible value chain practices.

- ANI

Share this article:

Reader Comments

A
Arjun K
Finally, someone is talking about this! The e-waste mountain is a huge problem in our cities. We need stricter laws for producers to take back old phones and laptops. Companies making profits here must be responsible for the waste they create.
R
Rohit P
While the report is correct, I feel it puts too much onus on companies. What about consumer responsibility? We in India upgrade phones every 2 years. Maybe we should also change our habits and use devices longer.
S
Sarah B
The stats are shocking – 1 trillion litres of water! As India pushes for 'Make in India' in semiconductors, we must build these factories with sustainability from day one. It's cheaper to build green now than retrofit later.
K
Karthik V
Good point about financial opportunities. Circular economy can create so many green jobs in India – from e-waste recycling to repairing devices. Tech growth and sustainability can go hand in hand if planned properly.
M
Michael C
Respectfully, the report seems to focus mostly on large global firms. What about the thousands of Indian IT/tech startups? They need guidance and incentives too to adopt green practices from the beginning. A one-size-fits-all approach won't work.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50