IT and telecommunications net zero sector guide

This net zero guide is for small businesses in the IT and telecommunications sector, including:

• owners
• managers
• employees

By reducing emissions in your sector, you can:

• demonstrate your commitment to sustainability
• save on energy costs
• attract new customers and investors

You can also use the Digital Connectivity Forum’s (DCF’s) Net Zero guidance for SMEs in the telecoms sector (PDF). DCF is the primary advisory group to the UK Government on digital connectivity.

For other sectors, you can find help and advice on how to reduce emissions in our other net zero sector guides.

Understand your organisation’s emissions
Reduce emissions and costs in the IT and telecommunications sector
Track and share your progress
Insights
Set up a strategy
Get finance and support

Understand your organisation’s emissions

1. Why you should act to reduce emissions

Climate change and the degradation of natural ecosystems are having widespread effects globally.

As part of the IT and telecommunications sector, small businesses have a vital role to play in addressing these urgent challenges and contributing to a sustainable future.

Measuring your greenhouse gas (GHG) emissions is an important step for managing costs and moving towards net zero. You can set targets and develop short and long-term plans if you know how much carbon your business produces.

Results from the UK Net Zero Business Census 2024 Report demonstrate that requirements to measure carbon emissions are cascading down through supply chains to affect small businesses:

46% of respondents had received customer or tender applications that required carbon footprint data in the last 12 months.
37% of these respondents were small businesses that fall outside of regulatory requirements like Streamlined Energy & Carbon Reporting (SECR) to report carbon emissions

In addition, Mobile Network Operators (MNOs) and other large businesses are asking their suppliers to calculate their emissions and reduce them.

Some large businesses and public sector organisations are helping suppliers to:

report their emissions, including support to prepare a Carbon Reduction Plan (CRP): a document that summarises current emissions and plans for reducing emissions, and a requirement when bidding for many public sector procurements
identify onsite energy reduction opportunities and improve GHG reporting
balance improvements in computational power with emission reduction in new products
sell and design lower carbon and circular products that maximise longevity through repairability, modularity and reuse

Find out about BT’s Climate Change Procurement Standard and how Vodafone manages its supply chain.

Find out more about how to become a ‘net-zero’ ready supplier.

2. How emissions are categorised

The GHG Protocol (Corporate Standard) is widely used to report carbon emissions to the government, suppliers and investors.

The protocol categorises a company’s emissions into direct and indirect emissions:

direct emissions from sources that your company owns and controls
indirect emissions from the company’s activities but occurring at sources owned or controlled by another company

Emissions are further divided into three scopes:

direct emissions are included in scope 1
indirect emissions are included in scope 2 and scope 3

You must measure at least Scopes 1 and 2 to comply with the GHG Protocol.

Scope 1 and 2 emissions

Scope 1 and 2 greenhouse gas (GHG) emissions include:

fuel burned on site for heating
vehicles or equipment using petrol or diesel that you own, or directly control in terms of operational use
refrigerant gases
electricity that is purchased or otherwise brought into the organisational boundary of the company:, emissions physically occur at the facility where electricity is generated
process emissions

Scope 3 emissions

Scope 3 emissions are all indirect emissions not included in Scope 2. These emissions occur both upstream (from the supply chain) and downstream of your organisation, for example, through customer use.

According to GOV.UK research, Scope 3 emissions can account for 80 to 95% of a company’s carbon footprint.

Scope 3 emissions come from 15 defined categories but not all categories are relevant or applicable for all organisations in the IT and telecommunications sector:

Upstream

purchased goods and services
capital goods
fuel and energy-related activities not included in Scope 1 or Scope 2
upstream transportation and distribution*
waste generated in operations*
business travel, including accommodation*
employee commuting and working from home*
upstream leased assets

Downstream

transportation and distribution*
processing of sold products
use of sold products
end-of-life treatment of sold products
downstream leased assets
franchises

* Scope 3 emissions categories required alongside Scope 1 and Scope 2 emissions when producing a Carbon Reduction Plan

Find more guidance on Scope 3 emissions:

3. Use free tools to calculate your emissions

Collect data for a representative period or year for the main activities which release carbon emissions in your organisation.

These main activities may include:

electricity/gas use
waste disposal/recycling
business travel
owned or directly controlled vehicles
employee business travel
employee commuting

Choose one of the free carbon calculators to help you calculate emissions in metric tonnes CO₂ equivalent per year.

Calculating your carbon footprint will give you an emissions baseline. This baseline acts a reference point against which you can:

identify where your emission hotspots are
set targets, for example by scope and fuel type, including the year by which you hope to achieve net zero and interim milestones.
measure changes in your greenhouse gas (GHG) emissions going forward

Check Measure your carbon emissions so you can find more about:

what data you need to collect
how to quantify your emissions

You could also consider hiring a sustainability consultant to help you.

Reduce emissions in the IT and telecommunications sector

You can reduce emissions in the IT and telecommunications sector by making changes in these five areas:

Energy

Resource efficiency

Products

Transport

People

Energy

Decarbonise energy use

1. Review your energy tariff

Make sure you’re on the right energy tariff for your business and consider switching to a ‘green’ supplier. By securing a competitive tariff, your business can:

significantly reduce energy costs
gain control of your energy future usage

Switching from a default mains electricity supply to a ‘green tariff’ can further reduce your greenhouse gas emissions.

100% renewable electricity supplies will be supported by Renewable Energy Guarantee of Origin (REGO) certificates (in the UK). You can receive these certificates from your supplier annually to demonstrate that you’ve purchased electricity from renewable sources.

Speak to your supplier to see whether they offer renewable tariffs, or have a look at other suppliers who offer a variety of tariffs.

Find out more about how to buy your electricity from renewable sources.

2. Switch to renewable energy

Installing solar panels or a wind turbine can reduce your energy bills in the long term as well as your reliance on the grid.

If you don’t own your site, work with facility owners and co-manufacturers to explore on-site renewable options.

Manage energy use to maximise real-time renewable consumption.

Integrate battery storage systems to manage energy supply during downtime or intermittencies in renewable energy generation. This will ensure a continuous supply of green energy.

You may qualify for a business rate exemption if you install renewable energy measures on-site.

Check our resources to:

decide if solar panels are right for your business
find out how to generate energy with a wind turbine

3. Electrify building services

To cut greenhouse gas emissions, the best step is to burn fewer fossil fuels.

Replacing existing gas or oil boilers and heating systems with electric options like heat pumps can help.

You can apply for GOV.UK grants to help replace fossil fuel heating with a heat pump. Flexible, low-cost tariffs can also reduce running costs.

Learn more about air and ground source heat pumps and how to get one.

If your building has a diesel back-up generator, consider switching to an electric alternative, like battery storage.

4. Energy Savings Opportunity Scheme (ESOS)

The Energy Savings Opportunity Scheme (ESOS) is a UK government initiative that mainly applies to large businesses. However, some SMEs may still need to comply, for example, if they are part of a larger corporate group that meets the qualification criteria.

You’ll need to carry out an energy audit every four years to assess energy use and identify efficiency improvements if your business is affected.

Check GOV.UK guidance to find out if ESOS applies to you and what steps to take.

Improve energy efficiency and management

1. Audit your energy consumption

Do an assessment in your building to see if energy is being used efficiently.

Speak to your building manager or landlord about common services if you share the building with other tenants. Suggest shared audits to find quick energy-saving wins.

You may wish to contract an energy auditor to do this for you. Your energy audit should be done to one of two standards: BS EN 16247 or ISO 50002.

Monitor energy consumption data

Follow these steps to check your energy consumption:

Check how much your consumption varies on a daily, weekly or monthly basis – do variances make sense?
Check for a high overnight baseload if you can review half-hourly consumption. Can equipment be switched off overnight to reduce out-of-hours demand?
Speak to your supplier, they may be able to share insights into your data and suggest ways that you can reduce your consumption.

Installing energy sensors like sub-meters can help you track and manage your energy use to improve efficiency.

Identify the end uses of energy

Identify the different end uses in your building and check they are operating efficiently. This might help you spot:

lighting issues
excessive use in heating, ventilation, air conditioning (HVAC) units or chillers
outdated equipment and machinery

Consider whether you can:

reduce the number of end uses
change the amount of time they’re used for
reduce consumption

You can use the new Energy and Decarbonisation PAS standard to help you improve your energy efficiency. The standard provides a structured approach to assess your energy use and reduce carbon emissions.

Based on your findings from an audit, you might want to consider setting an energy strategy for your business.

Find out more about developing an energy strategy from the Carbon Trust.

2. Replace equipment to improve your energy efficiency

Optimise the use of existing equipment

Consider replacing energy-intensive equipment with energy-efficient alternatives.

Push for modern, high-efficiency machinery in procurement discussions with facility owners or co-manufacturers. Human-to-machine and machine-to-human interaction can help reduce your emissions.

These technologies include:

IoT sensors
robotics: automated production ensures greater precision and use of assets 3D printing – helps efficient use of materials, extending life cycle of parts
digital twin technology – creates digital replicas of assets to avoid producing waste

Consider installing a Building Management System (BMS), or optimising your current system, to ensure the run times of main building services closely match the building occupancy.

Review temperature set points, ensure systems aren’t conflicting, for example, heating is not ‘on’ at the same time as cooling.

Other energy-saving measures include:

replacing older fluorescent lighting with LED lighting and installing smart controls
switching from desktop computers to laptops: laptops usually use 85% less electricity over a year than desktop PCs since they have smaller components and can run on their battery without needing to be plugged into a wall
installing variable speed drives (VSDs) to reduce energy and save costs on pumps and fans

Check planning permission guidelines before you make any structural changes to the property.

Find out about more energy efficient measures in commercial building and home energy use.

Review and maintain equipment

Maintain and regularly service equipment to ensure it:

operates at peak efficiency, prolonging its lifespan
reduces waste from early replacement

As part of predictive maintenance, use Artificial Intelligence (AI), Machine Learning (ML), and tools such as the Internet of Things (IoT) to reduce energy and emissions.

3. Reduce energy use from office equipment

Review smaller end uses, such as computers, printers, desk lamps, and other office equipment.

Consider replacing equipment that is over 15 years old with models using the European A–G efficiency label.

Do the following with your electrical equipment to help you waste less energy:

make sure computer equipment is switched off and unplugged when not in use
set office equipment, such as printers, to automatically shut down when not in use
optimise the brightness of monitors: having them too bright not only uses more energy, it can cause eye strain
use the eco setting on all appliances
ensure all communal equipment is switched off at the end of the day

4. Choose cloud computing and improve your systems

Cloud computing services consume considerable energy. Choose your cloud computing on the basis of their commitment to sustainability.

Take a close look at your operations to see if you can:

design software in a way that minimises the energy needed to run it
limit data movement
improve idle efficiency

Resource efficiency

1. Manage your IT and telecommunications waste

Recycle as much of your waste as you can. Prevent waste from being taken to landfill sites. Landfill waste takes longer to break down and causes more emissions.

Plan ahead to prevent waste from occurring in the first place. Where waste does occur, it should be managed in the most resource-efficient way possible. After prevention, priority should be given to reuse, recycling, and then recovery. Disposal, such as landfill, is generally considered the least preferable option.

Set up a waste management system to:

conduct a waste audit to identify the types and amounts of waste generated by the business to show opportunities for reduction
establish a system for monitoring and tracking waste generation
regularly review and make adjustments to waste reduction strategies

Train your employees on your recycling plan. Make sure they know how to:

separate and monitor waste where waste is unavoidable
plan and order carefully to avoid overstocking and wastage

Follow the Waste Electrical and Electronic Equipment Regulations (WEEE Regulations) and reuse, recycle and dispose of outdated equipment and devices to prevent e-waste and associated emissions.

Check your waste-related obligations and how to manage your waste.

2. Promote circularity

Circular business models aim to keep products, materials, and resources in use for as long as possible through strategies like:

re-using
remanufacturing
recycling

Circular models not only reduce environmental impacts, they also create economic opportunities by seeing waste as a valuable resource.

In addition, adopting circular practices can also lead to greater resilience and cost savings. By designing products for longevity and recyclability, companies can reduce their dependence on raw materials and mitigate supply chain disruptions.

By embracing circular strategies, small businesses can open new revenue streams like selling refurbished products and recycling services. This can help SMEs:

differentiate themselves in the market
attract environmentally-conscious consumers
reduce operational costs

Find out about how to:

work with a university to help you innovate and optimise your operational efficiency
sell lower carbon and ‘circular’ products

3. Save water and reduce your carbon footprint

Save water and reduce your carbon footprint to lower your water and energy bills by:

monitoring your water use
fixing leaks
insulating heaters, pipes and radiators
installing low-flow fixtures and water-efficient facilities
recycling water

4. Consider the natural environmental resources at your site

From 2024, small site developments must be ‘nature positive’, delivering a 10% benefit for nature. Developers must assess the type of habitat and its condition they plan to affect before submitting plans to the local planning authority, leaving nature more effectively in and around developments.

Find out more about your obligations on GOV.UK’s Understanding Biodiversity Net Gain (BNG).

Products

To reduce indirect or ‘supply chain’ emissions, you need to consider what happens before and after your business provides a service or makes a product.

1. Choose greener suppliers and products (upstream)

Engaging your suppliers is one of the best things you can do to reduce your product emissions.

Include energy efficiency in your procurement considerations, especially electronic devices you purchase.

You can reduce your upstream emissions by asking questions during procurements on a supplier’s sustainability practices such as:

low carbon initiatives
net zero targets
carbon tracking and reporting

Incorporate suppliers’ responses into your decision-making process.

Consider how the decisions you make may impact the sustainability of the goods and services being supplied to you, for example, materials and location.

Actively look for suppliers who:

have a track record of low carbon operations
have Science Based net zero or equivalent targets and/or are signed up to the SME Climate Commitment
have a net zero Transition plan or decarbonisation roadmap
develop products that are energy efficient, taking less energy to make, transport and operate
can track and report their carbon emissions to you
have low carbon product labels and certifications
are local to lower transportation emissions

You can reduce your upstream emissions by helping your suppliers with their carbon reduction plans. Direct your suppliers to how to become a ‘net-zero’ ready supplier so they can find out more about how to implement an effective carbon reduction strategy.

Check these resources to find out more on how to engage with your suppliers:

2. Reduce impacts from the use and disposal of your products (downstream)

You can reduce downstream emissions by:

making products that take less energy to make, transport and operate
reducing water consumption and waste disposal needs
making investments in lower carbon financial products
giving incentives for lower emission activities in franchises and leased assets, such as office space or vehicles

3. Get product labels and certifications

Credible product labels and certifications help

demonstrate environmental accountability
meet customer expectations for verified sustainability data
build trust in the supply chain
gain a competitive edge by aligning with sustainability goals and regulations

Key tools include:

1. Product Carbon Footprint (PCF): this tool measures total greenhouse gas (GHG) emissions over a product’s life cycle in CO₂e.

Scopes include:

Cradle-to-Gate: emissions from raw material extraction to factory completion
Cradle-to-Grave: emissions across the full life cycle, including disposal

Carrying out a PCF helps SMEs:

identify emissions reduction opportunities
enhance data-driven product design
meet sustainability data demands

2. Life Cycle Assessment (LCA): a standardised method for analysing environmental impacts across a product’s life cycle.

LCA’s are:

critical for PCF calculation and certification
supported by Product Category Rules (PCRs) to ensure consistency in assessments

3. Environmental Product Declaration (EPD): a third-party verified report based on LCA results that transparently communicates a product’s environmental performance.

EPDs:

adhere to ISO standards, for example, ISO 14025, ISO 14067:2018
are essential for supply chains requiring validated sustainability data

Find out more about how to get low carbon product labels and certifications

Transport

1. Switch to electric vehicles

Consider switching to electric vehicles.

You would be exempt from congestion charges and parking fees in certain areas.

You can also claim ‘enhanced capital allowances’ (a type of first year allowance) for:

electric cars
cars with zero CO₂ emissions (new and unused)

Find out about how to install vehicle chargepoints.

2. Implement a Green Employee Travel Policy

A Green Employee Travel Policy prioritises low-carbon travel options by encouraging employees to choose sustainable transportation, accommodation and travel practices, including:

using trains not planes in the UK, and Europe wherever possible
promoting walking, cycling, or public transport for short to medium distance
prioritising electric or hybrid vehicles for car rental
promoting carpooling and ride-sharing services for ground transportation
using video-conferencing for meetings, including online staff onboarding to train your team and short interviews with contributors
partnering with travel agencies that have expertise in sustainable travel

Find out more about how to:

2. Reduce business travel

Travelling to different sites for work purposes is a major source of carbon emissions and expenses for some businesses.

Plan routes to save on fuel costs if you own or operate a petrol or diesel vehicle.

You can also reduce your impact by:

eliminating unnecessary trips
increasing picking up or delivering on return or round trips to reduce empty runs
monitoring driver behaviour
reviewing storage facilities to streamline your operations

Find out more about how to reduce the impact from business travel.

People

1. Get your staff engaged in your carbon reduction plan

You can create an energy management role or groups so you can make energy savings:

a business priority
part of your business long-term

Get your team involved in carbon reduction measures such as:

a ‘switch off policy’ in staff areas: turning off and unplugging devices and lights when they’re not being used can make a difference
a cycle-to-work initiative

Offer training sessions on sustainable practices, including:

energy and water conservation
waste management
use of green products

Use video-conferencing for meetings, including online staff onboarding to train your team.

Find out more about:

2. Promote sustainability

Create a sustainability strategy that incorporates ESG goals such as:

reducing emissions
protecting biodiversity
promoting responsible sourcing

Help raise public awareness through your marketing and consumer engagement channels and support environmental sustainability campaigns.

Engage with local communities and stakeholders to support environmental restoration and rehabilitation efforts. This could include:

reforesting areas
promoting wildlife conservation

Track and share your progress

1. Make a public commitment to achieve net zero by 2050 or earlier

You can sign up to the SME Climate Commitment. To align with the SME Climate Commitment, businesses need to commit to:

cutting Scope 1 and 2 greenhouse gas emissions by at least 50% by 2030 using 2019 or later as the base year
reaching net zero by 2050 or sooner

All businesses making the SME Climate Commitment should also aim to halve their most material Scope 3 emissions by 2030.

For small businesses, the most significant scope 3 emissions often come from purchased goods and services.

2. Monitor and report your emissions data

After you have made a public commitment to reduce your emissions, you should regularly monitor and report your emissions data against your established baseline.

The SME Climate Commitment offers the SME Reporting Tool for small businesses and institutions. This helps create annual sustainability reports and track their reduction efforts.

Show what your company is doing to meet its targets and the impact of your initiatives on your company’s emissions.

You can share:

your annual reports on your website
add reported data into annual business reports
directly distribute reports to customers, funders and suppliers

Check how to track and share your progress.

Insights

Find out what other businesses are doing to reduce emissions and cut costs in our case studies.

Find out about the latest thinking in our thought leadership articles. For example, find out from:

Ben Grunfeld, Strategy and Growth Director at Electricity North West, about the transition from DNOs to distribution system operation (DSOs) and the benefits for small businesses
Chris Sims, Chief Commercial Officer in BT’s Business division, about how BT is building a circular economy and what small businesses can learn
Paul Glendinning, Energy Systems Director at Northern Powergrid, about why the north of England’s electricity grid is net zero-ready

Join webinars and events to gain insights into what other small businesses are doing to get to net zero.

Set up a strategy

Find more support and guidance to help you build and deliver your net zero strategy:

The Digital Connectivity Forum (DCF) is the primary advisory group to the UK Government on digital connectivity. DCF has published:

DCF’s guidance recognises the important role SMEs will play in achieving the UK’s net zero goal. It includes easy to follow guides on how to calculate carbon footprint and set a credible carbon reduction goal.

BSI’s free guidance for small businesses on helping them create transition plans: BSI Flex 3030 v2.0:2024-12 | 31 Dec 2024 | BSI Knowledge

In 2020, the GSMA and Carbon Trust published GSMA’s Achieving Climate Targets Guide which explains step-by-step how to align carbon targets with the new ICT sector pathway to net zero.

Visit the Carbon Disclosure Project (CPD) to find out their SME questionnaire and reporting guidance (PDF).