What the First CSRD Reports Tell Us About Sustainability in the Tech Industry
For tech companies, sustainability is no longer just about recycling hardware or optimizing server capacity. Today, it requires a fundamental rethinking of how technology companies create long-term value with sustainability in mind. In this article, we highlight which sustainability topics truly take priority within the European tech sector, where the key transition risks lie, and how mid-sized and large technology companies can strategically prepare for future requirements and expectations. Our analysis of the first CSRD reports from twelve major European tech companies shows that a small number of sustainability topics consistently emerge as both strategic and material. These insights also provide mid-sized and large tech companies with a clear compass to more deliberately steer toward long-term sustainable resilience.
The Three Key Sustainability Topics for the Tech Sector
Based on the reported double materiality assessments (DMAs), the following topics most frequently emerge as material. Double materiality means that these topics have a clear impact on people and the environment, while also potentially having financial implications for the company itself. Topics such as data privacy and information security are so deeply embedded in the core of risk management within the tech sector that they are almost self‑evidently considered material. They form the foundation of trust in digital services and are explicitly recognized as strategically relevant by nearly all technology companies. Since there is little debate around these issues, the more meaningful differentiation lies in other areas—particularly the social and environmental topics highlighted below.
1. Equal Opportunities and Inclusion in the Value Chain (71%)
Diversity, equal treatment, and inclusion are no longer only HR concepts, but strategic KPIs. Especially for companies with international development teams, nearshoring activities, or a reliance on external IT consultants, transparency around human rights, working conditions, and equal treatment is increasingly becoming a prerequisite in tenders and client relationships. At the same time, it is a critical factor in attracting and retaining talent.
2. Climate Change Mitigation (57%)
The need to reduce greenhouse gas emissions (Scope 1, 2, and 3) directly affects data centers, software infrastructure, and the procurement of hardware and services. In the tech sector, climate change mitigation is increasingly about strategic choices: do you select a cloud provider with a sustainable energy profile? Do you sufficiently monitor your upstream emissions? And do you even have clear visibility into CO₂ emissions within your service delivery model?
3. Energy Use (50%)
Especially in cloud‑heavy or data‑driven tech companies, energy is far from a side issue. Both energy efficiency and the source of electricity are becoming decisive factors in customer contracts and in compliance with ISO standards and regulatory requirements, such as the CSRD or energy audits under EU directives. Consider the rapidly growing use of AI, where GPU‑intensive processes can quickly lead to higher costs as well as a larger environmental footprint.
Transition Under Pressure: Why Action Is Needed Now
While many technology companies are not yet subject to mandatory reporting requirements, the effects of new regulations are already evident. European rules increasingly demand transparency on both direct sustainability impacts and those across the entire value chain. Meanwhile, major clients, investors, and financiers are setting higher expectations, requiring robust ESG data—including emissions, human rights, and cybersecurity—to underpin business relationships. As a result, tech companies are under growing pressure to disclose their energy consumption, cloud and hardware footprint, and their contribution to the sustainability of digital value chains.
Transition Risks: The Technological Blind Spot
- CO₂- pricing and emissions reduction requirements can suddenly make existing infrastructure more expensive.
- Companies that cannot deliver emissions data or social KPIs across their value chain risk losing customers.
- Financing and subsidies are increasingly being directed toward companies with a demonstrable sustainability strategy.
Our analysis shows that nearly all of the tech companies reviewed identify climate change as a material issue. Only one does not—and that stands out. Not because it constitutes a legal error, but because it is strategically risky: companies that overlook their climate impact risk falling behind in audits, tenders, and investor discussions.
Water: The Paradox of Data Growth
Although only 7% of companies identify water use as a material topic, its importance is growing rapidly. AI, cloud infrastructure, and edge computing require substantial cooling and energy. This creates a paradox: while technology helps other sectors become more sustainable, it increasingly consumes significant amounts of water and energy itself. It is precisely within this tension that opportunities for innovation—and for transparency—emerge.
What Does This Mean for Your Company?
For mid-sized and large tech companies, this is a pivotal moment to refine their ESG priorities — not out of obligation, but based on strategic insight:
- Bring focus to your materiality assessment: concentrate on the topics that your peers also identify as material.
- Understand your risks: start by mapping emissions, value chain responsibilities, and dependencies on energy and data infrastructures.
- Make sustainability measurable and visible: not only for compliance purposes, but to drive value creation, strengthen market position, and support employer branding.
A Call to the Tech Sector
The first CSRD reports point the way forward: equal opportunities across the value chain, climate change mitigation, and energy use are the key priorities for technology companies. By reporting transparently on these topics now—even if you are not yet subject to CSRD requirements—you build trust, resilience, and strategic agility. This is where the European Voluntary Sustainability Reporting Standard (VSME) comes into play. The VSME enables companies to get started with a simple and accessible sustainability report. Developed to help organizations gain insight into their sustainability impact in a low‑threshold way, the VSME also serves as a practical stepping stone toward the more extensive requirements of the CSRD or other frameworks. By starting with a straightforward report today, you lay the foundation for data collection, internal processes, and more comprehensive reporting. In addition, the VSME helps create value within your organization at an early stage—through greater transparency toward customers, suppliers, and investors, an enhanced reputation, and increased awareness of sustainable business practices among employees.
Don’t Wait for Obligation. Act on Commitment.
Would you like to know how your company can address this in practice? Our BDO ESG team supports tech companies with conducting materiality assessments, defining relevant ESG KPIs, preparing a VSME‑compliant report, and building future‑ready reporting processes.
