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Data year: 2023· Sources: CDP, IEA, EPA
2.5%
of global emissions
1.4
Gt CO2e / year
12
tCO2e / $M revenue
70%
Scope 3 share
Average emissions intensity for technology & software companies (2023 data)
| Company Size | tCO2e / employee | tCO2e / $M revenue |
|---|---|---|
| Small (< $10M revenue) | 3.5 | 18 |
| Medium ($10M–$500M) | 6.2 | 12 |
| Large ($500M+) | 8.5 | 8 |
Small (< $10M revenue)
3.5
tCO2e / employee
18
tCO2e / $M rev
Medium ($10M–$500M)
6.2
tCO2e / employee
12
tCO2e / $M rev
Large ($500M+)
8.5
tCO2e / employee
8
tCO2e / $M rev
Key decarbonization actions for the technology & software sector
Switch to renewable electricity for offices and data centers
30-50% reduction in Scope 2
Optimize cloud and server efficiency (PUE improvement)
15-25% reduction in data center energy
Remote/hybrid work policies to reduce commuting
10-20% reduction in employee-related emissions
Sustainable procurement and supplier engagement
20-40% reduction in Scope 3 over 5-10 years
Extend product lifecycles and design for recyclability
10-15% reduction in product lifecycle emissions
Companies without CDP disclosure or SBTi commitments are increasingly scrutinized by investors and clients.
The technology sector accounts for approximately 2-3% of global greenhouse gas emissions (about 1.4 Gt CO2e), comparable to the aviation industry. Data centers alone consume about 1-1.5% of global electricity.
Data centers and cloud computing (40%), supply chain and hardware manufacturing (25%), employee commuting and business travel (15%), and office energy use (10%).
A typical hyperscale data center emits 20,000-50,000 tonnes CO2e per year, though this varies enormously based on the local electricity grid and cooling efficiency.
Yes. Training large AI models can emit hundreds of tonnes of CO2. Both Google and Microsoft reported rising emissions in 2024 due to AI infrastructure expansion.
Data represents global averages for 2023. Actual emissions vary by company, region, and methodology.