Scope 3 blind spots and shaky vendor reports are stalling UK tech investment, warns Wasabi’s Kevin Dunn, who argues transparency is the first act of innovation – not a PR risk.

Earth Overshoot Day marks the date when society has exhausted nature’s ‘budget’ for the year, basically all the ecological resources it can generate in 365 days. In the UK, we passed this point on May 20 – but for the entire planet, that day is today (July 24).  

It’s important as Earth Overshoot Day serves as a powerful reminder to look at our consumption habits and brings into question our ability to accurately measure our environmental impact when so many polluting daily activities are invisible. For example, the emissions produced from driving a car are much more obvious than those from sending an email. The real overshoot may well lie in our collective inability to quantify and share our emissions accurately.

Across the corporate world, emissions transparency remains a sensitive, and sometimes avoided, topic. In our recent study, we found a large portion of business leaders are reluctant to measure and publicise their company’s true carbon footprint. Not only for lack of tools, but out of fear: nearly half of UK business leaders are afraid to learn the full extent of their emissions, and 62% worry about public backlash if the data is too high.

Hold your tech vendors accountable

With increasing social and regulatory pressure, reluctance by a company to reveal emissions is ill-received. For example, in Europe the Corporate Sustainability Reporting Directive (CSRD) currently requires large businesses to publish their emissions and other sustainability datapoints. Opaque sustainability reporting undermines environmental commitments and distorts the reference points necessary for net zero progress. How can organisations work toward a low-carbon future when its measurement tools are incomplete or unreliable?

The issue is particularly acute regarding Scope 3 emissions. Scope 3 emissions often account for the largest share of a company’s carbon footprint and are those generated indirectly along the supply chain by a company’s vendors, including emissions from technology infrastructure like data centres. A business using cloud computing or storage services must consider the energy consumption of the data centre where its information is processed as contributing to the business’ carbon footprint.

Despite their prevalence, 30% of UK businesses cannot accurately assess the emissions from their tech stack. This may be due to 45% not being provided complete data from their tech providers and 47% doubting its reliability.

Low quality data prevents investment in innovation

A lack of transparency around emissions has consequences on business. Without robust data it is impossible to make informed decisions – 42% UK business leaders admit to postponing technology investments because they were unable to properly assess its environmental impact. The conclusion is therefore that poor quality sustainability data is holding back innovation.

We’re faced with a paradox: businesses want to modernise their infrastructure and scale towards success, while reducing emissions. Then, without the guidance of reliable data, transition efforts remain stuck as nothing more than good intentions. Uncertainty results in stagnation, meanwhile the world continues to deplete resources and Overshoot Day inches earlier.

There’s more to sustainability data than compliance

It sounds grim, but there is some cause for optimism. Most companies are in a better position than they were five years ago and acknowledge that their measurement capabilities have improved. We need to accelerate the momentum of this progress to ensure real action. Earth Overshoot Day is a reminder that climate reporting for the sake of accountability and compliance only covers the basics. The next step is to use emissions data as benchmarks for real-world progress.

This demands stricter requirements from partners, especially within the tech sector from which emissions data is too often inaccurate, inaccessible or obfuscated. Today, one in two European business leaders refuse to work with suppliers who don’t provide reliable emissions data. If replicated across the entire value chain, this type of expectation can become a powerful driver for change.

The truth is that the emissions from tech infrastructure are real, whether you measure them or not. Earth Overshoot Day is a reminder that the planet’s resources are diminishing, but we have the power to make real change. Tech vendors must help their customers pivot from fear to action – measuring their emissions and sharing reliable sustainability information. We can’t manage what we don’t measure, so vague estimates won’t cut it for sustainable action.

Better measurement is the first yet foundational step toward changing course, requiring the courage to accept accountability and publicly share the emissions truth.