Nature Positive Role of the Technology Sector 2025

This chapter presents a high-level analysis of the tech industry’s impacts and dependencies on nature, analysed by sub-sector. The analysis is based on global sector averages, but company- specific impacts and dependencies will vary according to their activities, supply chains and operational locations. The semiconductor, data centre and hardware sub- sectors all have extensive nature-related impacts and dependencies. Understanding and addressing these is critical, both for improving nature outcomes and for preserving the overall tech industry’s financial strength, given the principle of “double materiality” (see Figure 8). These tech industries are highly dependent on natural resources and ecosystem services, such as minerals and metals, energy, freshwater and natural regulation of climate, soil and floods (see Box 3). Double materiality FIGURE 8 Double materiality Traditional materiality Business impacts on nature/ impact materialityDependencies/ financial materiality Examples of financial materiality Pressure on water availability and decline in quality affect company profitability Soil erosion and degradation lead to decreases in agricultural yields for agricultural food companies Dirty beaches and coastal areas cause drop in tourism traffic and revenues – – –Examples of impact materiality Company activities affect water supply and quality Unsustainable agricultural practices lead to decrease in soil quality Irresponsible travel and tourism cause pollution and over-exploitation of natural resources – – –Business dependencies on nature/financial materiality Source: World Economic Forum.48 Nature Positive: Role of the Technology Sector 19