The technology, media, and telecoms (TMT) sectors in the UK are grappling with the need to balance innovation with sustainability.

As demand for digital services continues to grow, so does the energy consumption of data centres, digital infrastructure, and 24/7 operations(1). These sectors are major contributors to carbon emissions, but they are also at the forefront of driving sustainability across the supply chain(2).

TMT businesses are under growing pressure to meet ESG and net zero targets from both regulators and clients. For instance, the UK government has set stringent carbon reduction targets, and businesses in the sector must adapt to meet these goals(3).

The increasing use of data centres, cloud services, and digital infrastructure places significant strain on energy resources. According to recent estimates, data centres alone account for over 2% of global electricity consumption(4).

Additionally, the sector is facing pressure from investors and clients to be more transparent about carbon emissions and sustainability initiatives. As a result, companies in TMT are increasingly focusing on energy-efficient solutions such as renewable energy-powered data centres and energy-saving technologies for their operations(5).

Regulatory frameworks such as the EU’s Carbon Border Adjustment Mechanism (CBAM) are also impacting the sector. The CBAM, which will impose carbon tariffs on imports of certain products, is set to affect UK businesses engaged in cross-border trade(6). This could create additional pressure for TMT companies to measure and report their carbon footprints across the entire supply chain.

Despite these challenges, the TMT sector holds significant potential for driving sustainability innovation. By adopting green technologies and improving energy efficiency in their operations, businesses in this sector can lead the way in achieving Net Zero goals while ensuring long-term growth and resilience.

Bibliography

1 New research shows digital impact on the UK’s Net Zero targets (Accessed May 2025) https://www.fnc.co.uk/discover-frazer-nash/news/new-research-shows-digital-impact-on-the-uks-net-zero-targets

2 Role of Digitalisation in Driving Sustainable Supply Chains (Accessed May 2025) https://tiscreport.org/news/role-digitalisation-driving-sustainable-supply-chains

3 Net Zero Strategy: Build Back Greener (Accessed May 2024) https://www.gov.uk/government/publications/net-zero-strategy

4 What the data centre and AI boom could mean for the energy sector (Accessed May 2025) https://www.iea.org/commentaries/what-the-data-centre-and-ai-boom-could-mean-for-the-energy-sector

5 Telecom Media Technology: Driving Sustainable Change (Accessed May 2025) https://wholesale.banking.societegenerale.com/en/news-insights/all-news-insights/news-details/news/telecom-media-technology-driving-sustainable-change

6 Factsheet: Carbon border adjustment mechanism (Accessed May 2025) https://www.gov.uk/government/publications/factsheet-carbon-border-adjustment-mechanism-cbam/factsheet-carbon-border-adjustment-mechanism