Sustainability has become increasingly important in many industries in recent years, particularly in the technology sector. While technology improves everyday life in many ways, it also has a considerable impact on the environment. The development and use of technologies must therefore follow sustainable principles in order to protect the environment and ensure a future worth living for generations to come. The term sustainability encompasses the three dimensions of environmental, social and governance (ESG). The extent to which a company incorporates these three dimensions into its business activities can be used as a measure of its sustainability.

ESG as an economically relevant topic

ESG has now become an economically relevant and competitive differentiating topic for companies, for example in the reduction of climate-damaging emissions and environmentally harmful substances, in the increased use of renewable energies, through increased transparency in supply chains and in ensuring adequate and equal working conditions. As part of the study „IT & Sustainability – Reifegradindex 2023“, 150 IT and business decision-makers from production and logistics in Germany were surveyed. The result: almost 74% of the companies surveyed already record sustainability data. This is also due to legal regulations that oblige companies to promote and disclose sustainability-related aspects and measures, such as the Corporate Sustainability Reporting Directive (CSRD) or the Supply Chain Sustainability Act (LkSG). In addition to legal requirements, competitive advantages are an important driver for the implementation of sustainability, according to the study.

Competitive advantage through energy savings

Key components of this competitive advantage are energy savings and the reduction of the ecological footprint. Digital technologies are an essential building block for achieving the climate targets by 2030. The Bitkom study „Klimaeffekte der Digitalisierung 2.0“ shows that annual CO2 emissions in Germany can be reduced by around 43 to 80 million tonnes in 2030 with the help of digital technologies. Smart grids alone could save up to 18.6 million tons of CO2 by 2030. This is a net effect that already takes into account emissions from data centers and end devices.

Environmental impact of electronics production

The manufacture of electronic devices and their energy requirements also have a significant impact on the environment, including the high consumption of resources such as water and minerals and the release of greenhouse gases. By adopting energy-efficient technologies and using environmentally friendly materials, companies can reduce their environmental footprint and help mitigate climate change. In addition, the use of renewable energy sources plays a crucial role in the sustainability of technology.

Data centers and IT infrastructures consume enormous amounts of energy. The use of renewable energies such as solar and wind power can help to reduce CO2 emissions. As a result, companies that are increasingly investing in renewable energies and converting their infrastructures to sustainable energy sources or are involved in the development of more efficient technologies for environmental protection are currently growing.

The GreenTech study by Umwelttechnik BW shows that the GreenTech sector is a significant economic factor in Baden-Württemberg, accounting for 3.3 percent of all employees and 4.4 percent of gross value added. A comparison with other key industries in the state, including mechanical engineering (4.7 percent), vehicle construction (3.8 percent) and the electrical industry (3.2 percent), shows that the lead markets of energy efficiency, water management, recycling and waste management, resource and material efficiency, air pollution control and environmentally friendly energy generation and storage are important economic sectors in Baden-Württemberg.

Promoting the circular economy

Another important aspect is the promotion of the circular economy in the technology sector. Products should be designed in such a way that they can be recycled or reused at the end of their life cycle instead of ending up in landfills. By reusing materials and extending the life of products, the demand for new resources can be reduced and the amount of waste reduced. Companies should work to develop products that are easily repairable and upgradable and implement programs to take back and reuse old equipment. Reusing materials and avoiding waste has positive effects on developing countries, which often suffer from the pollution of industrialized nations.

Developing technical solutions to global environmental problems is another approach to promoting sustainability in the technology industry. This includes using technology to monitor and reduce air and water pollution, preserve biodiversity and tackle climate change. By combining innovation and sustainability, companies can bring about positive change in the world and achieve economic success at the same time.

Based on an analysis of environmental technology patents, the study “Umweltinnovationen made in Germany” shows that Germany's specialization in environmental technologies is not very pronounced, but that Germany has a high level of technological expertise in almost all relevant technologies. This is underpinned by medium to high shares of global patent activities. Germany can therefore make a significant contribution to the global development of sustainable technologies.

Conclusion: Corporate responsibility

Overall, sustainability in the technology sector is crucial to overcoming the global environmental crisis. Companies must take responsibility and ensure that their activities and products are in line with the principles of sustainability. This requires a rethink in the development, production and use of technologies to ensure a future worth living for all. Germany, and Baden-Württemberg in particular, are in a position to play a pioneering role here.