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Could your business reduce its digital carbon footprint? 

Published: 01 May 2025

Are you aware of your business’s digital carbon footprint? You might not be able to see it, but it could be bigger than you think.

Traditional “heavy” industries such as engineering, manufacturing and construction, along with transportation, are the focus for many when it comes to monitoring emissions.

While there is no doubt that the use of technology in businesses has significantly enhanced efficiency and innovation, this advancement often comes with an increased carbon footprint. 

Even if you are a small, remote working operation, your business is impacting the environment through using digital technology.

The operation of data centres, essential for digital services, is a primary contributor to this rise. These facilities consume substantial amounts of electricity and water to power and cool servers, leading to notable carbon emissions. Data centres and cloud services alone account for about 1% of global electricity use, according to some estimates. 

Artificial intelligence (AI) systems require extensive computational power too. Training AI models like ChatGPT can consume up to 126,000 litres of water annually, research suggests. 

The digital sector contributes almost 5% of greenhouse gases (GHG) to the UK’s total GHG emissions, one study shows, roughly the same level of emissions as the waste sector.

Even seemingly insignificant everyday digital activities contribute to a business's carbon footprint. Sending emails, streaming videos and participating in online communications involve data transfer through energy-intensive data centres. 

Research shows that each internet search emits about 0.2 grams of CO₂. Using a smartphone for an hour daily results in 70kg of CO₂e annually. Sending 20 emails a day for a year can emit as much CO₂ as driving 1,000 kilometres. 

The production and disposal of electronic devices also play a role in environmental degradation. Manufacturing processes involve the extraction of raw materials and significant energy use, while improper disposal leads to electronic waste, releasing harmful substances into the environment.

While technology drives business growth in the UK, it also leads to increased energy consumption and carbon emissions. Addressing this challenge requires businesses to adopt sustainable practices and optimise their technological usage to mitigate environmental impacts. 

What can my business do? 

To reduce your carbon footprint, your business can implement several strategies focused on sustainable technology use. 

Conducting a comprehensive energy audit is a crucial first step, as it will help identify areas where energy efficiency can be improved. 

Upgrading to energy-efficient hardware, such as servers and computers with high energy ratings, can significantly reduce electricity consumption. Additionally, transitioning to cloud computing services that utilise renewable energy sources can decrease reliance on energy-intensive on-site data centres.

Optimising data management practices also plays a vital role. Implementing data compression techniques, reducing redundant data storage and scheduling non-essential data processing during off-peak hours can lower energy usage. Encouraging employees to reduce unnecessary emails and limit large attachments can decrease data transfer demands. 

Smaller energy-saving practices such as powering down equipment when it is not in use and minimising unnecessary printing can make a difference.

Investing in renewable energy solutions, such as installing solar panels or purchasing green energy from suppliers, can offset the carbon emissions associated with technology use. Collaborating with technology providers that prioritise sustainability in their operations can help you meet your environmental goals. 

Simply staying informed about the environmental impact of emerging technologies like AI will enable your business to make conscious decisions about their implementation. 

How can Business Growth West Midlands help? 

Net Zero Business Pledge 

Businesses that want to showcase their green credentials to customers might want to consider making the Net Zero Business Pledge
As a leader in the green industrial revolution, the West Midlands plans to become a net zero carbon economy by 2041.  

To help us achieve this, we want businesses across the West Midlands to join us through their own net zero journey. 

By making a Net Zero pledge, organisations across the West Midlands can demonstrate their commitment to reducing their carbon footprint and reaching net zero whilst also gaining access to expert advice and guidance around translating their pledge into action.

Business Energy Advice Service

The Business Energy Advice Service (BEAS) assists businesses using over 25,000 kWh of energy annually to reduce their carbon footprint through tailored energy efficiency support. Note sure if you’re eligible? Use our quick calculator.

BEAS provides free energy assessments to identify areas where businesses can improve energy efficiency and reduce costs. Following the assessment, businesses can apply for 50% match-funded grants ranging from £1,000 to £100,000 to invest in energy improvement measures. 

The energy improvement measures supported by BEAS include upgrading ventilation systems, replacing boilers and burners, installing heat pumps, adopting energy-efficient lighting, enhancing refrigeration units, improving insulation, investing in recycling equipment and implementing better water management practices. These initiatives not only reduce energy consumption and carbon emissions but also lower operational costs. 

Get in touch

For recommendations, support and funding to help your business grow sustainably, please click here to fill in our enquiry form. Your enquiry will be directed to the appropriate adviser in your local area, so you can start receiving personalised support.