Coping with Greenhouse Gas Emissions: Insights from Digital Business Services

Abstract

Digital Business Services (DBS), industries that have grown rapidly in recent years, played important roles in facilitating the adoption of digital technologies, as well as having applications in innovative products, transforming business processes across the economy. If DBS firms are committed to reducing negative environmental impacts, they should be able to make more positive contributions to their clients’ performance; forinstance, promoting the digitalization of businesses process in ways that can reduce greenhouse gas emissions and inefficient energy usage. But what are DBS business practices, in terms of greenhouse gas emissions and related topics? This study examines the Environmental, Social and Governance (ESG) disclosures of leading companies providing consultancy, advertising/marketing, and information technology services. The plans, targets, and actions of DBS companies with above-average ESG scores, as indexed by the Refinitiv dataset, are examined. The results indicate that all of these firms express goals, and almost all of them have set clear targets, in terms of moving to net zero. A wide range of relevant activities is being implemented, including services that promote energy efficiency. The diversity of these actions suggests that these firms can learn from each other, and that companies with lower ESG ratings have models to emulate.