WEF report warns technology sector's resource reliance threatens its growth

The World Economic Forum published "Nature Positive: Role of the Technology Sector," warning that the industry's reliance on water, energy, and raw materials threatens a sector projected to reach $13 trillion by 2029. Indian technology firms, data-centre operators, and semiconductor players face mounting pressure to adopt nature-positive practices and frameworks like the TNFD to manage operational and supply-chain risk.

The WEF report details how the technology sector, projected to reach a $13 trillion market size by 2029, is both dependent on and destructive toward natural systems. Semiconductor manufacturing consumes over one trillion litres of freshwater annually, global data centres draw more than 60 gigawatts of power, and discarded hardware generates an estimated 60 billion kilograms of e-waste yearly. The report sets out seven priority actions structured around the mitigation hierarchy of avoid, reduce, restore, and compensate, and references the Taskforce on Nature-related Financial Disclosures (TNFD).

The findings affect semiconductor manufacturers, data-centre operators, hardware producers, and the wider technology value chain. Companies face acute operational risks including supply-chain disruptions and escalating costs tied to water, energy, and raw-material dependency. Recommended actions target water-intensive operations through closed-loop server cooling, polluting manufacturing processes through cleaner methods, and linear consumption through circular economy initiatives recovering critical minerals from e-waste. The report also urges land stewardship prioritising brownfield development and direct investment in low- and zero-carbon energy infrastructure to reduce power-related impacts.

Technology leaders should implement the seven priority actions across the mitigation hierarchy, advance resilient water use, scale circular manufacturing, tackle non-power greenhouse-gas emissions, and engage both supply chains and policymakers, specifically referencing adherence to the TNFD framework. The WEF estimates that integrating nature-positive strategies can unlock up to $800 billion in cost savings and new revenue opportunities across the tech value chain by 2030, driven by resource efficiency, renewable energy sourcing, and advanced circular manufacturing, transforming nature action into competitive advantage.

Key figure — Potential value unlocked: up to $800 billion by 2030