UN’s Critical View on Digitalization

Growing Digital Footprint

Digitalization has accelerated significantly in the last two decades. The number of internet users has grown from 1 billion in 2005 to 5.4 billion in 2023. Similarly, smartphone shipments have more than doubled, and semiconductor unit sales have quadrupled.

With the development of 5G technology, the number of devices connected to the internet is expected to increase from 13 billion in 2022 to 35 billion in 2028.

However, such rapid expansion comes with considerable environmental costs. The Digital Economy Report 2024 highlights the footprint of digital devices and Information and Communication Technology (ICT) infrastructure, which encompasses the entire lifecycle from production to disposal.

Impact of Digitalization on E-commerce

Digital transformation has a significant impact on electronic commerce. As e-commerce faces increasing pressure for environmental responsibility, there’s a need to focus on sustainable practices. This includes using more environmentally friendly technologies, optimizing supply chains to reduce emissions, and promoting recycling. Integrating circular economy principles can help reduce the negative impacts of digitalization.

At the same time, digitalization offers tools to improve energy efficiency and reduce carbon footprint. For example, using data analysis and artificial intelligence to optimize logistics can bring both economic and environmental benefits.

E-commerce companies must actively seek ways to minimize their environmental impact and contribute to sustainable growth.

Need for Circular Economy

To mitigate the negative impacts of digitalization, the Digital Economy Report advocates for a transition from a linear to a circular economy. The current linear model – take, make, use, dispose – must be replaced with a system that embraces product reduction, reuse, and recycling. This change is crucial for minimizing resource extraction and waste generation, thereby promoting sustainability.

Water Usage and Pollution

One often overlooked aspect of digitalization’s environmental impact is water consumption. Every phase of the digital lifecycle, from mining and semiconductor manufacturing to cooling data centers, consumes significant amounts of water. This can lead to local water scarcity, affecting biodiversity and people’s livelihoods

Moreover, improper disposal of electronic waste can lead to water pollution, negatively impacting ecosystems and public health.

The document further emphasizes the urgent need to address the environmental footprint of digitalization. As the digital economy continues to expand, understanding and mitigating its environmental impacts is crucial for sustainable development.

However, assessing the environmental impact of digitalization is complex. There’s a lack of timely, comparable, and accessible data, and existing studies often don’t reflect the latest technological developments. For instance, the environmental impact of artificial intelligence and 5G is not fully captured in current analyses. Moreover, estimates of greenhouse gas emissions in the ICT sector vary widely, pointing to the need for standardized reporting and more comprehensive data collection.

By embracing circular economy principles and improving data transparency and assessment methodologies, we can work towards a more sustainable digital future. This balance is essential not only for the health of our planet but also to ensure that technological progress positively contributes to global development.