The Tech ESG Watch, a quarterly report released by GlobalData, shows that the global technology sector experienced gradual and consistent advancement in the second quarter of 2025. It explains, "We are seeing companies in the sector using pragmatic approaches to deal with geopolitical uncertainties and changing market dynamics while still maintaining their sustainability commitments. 

In the second quarter of this year, Virgin Media O2 introduced new recycling initiatives. The World Business Council for Sustainable Development has welcomed the commitments made by Malaysian telecommunications provider Maxis and NTT DATA to support business growth. The sector's shift towards environmentally conscious operations and responsible governance is evident in their small scale, but their collective impact is significant. 

The report argues that the tech industry's ESG movement is moving in a gradual and unyielding manner, much like climate change itself. The research indicates that ESG initiatives in the industry are not always about major breakthroughs and dramatic changes, but rather about gradual and sweeping shifts across operations, corporate policies, and sustainability efforts. 

While facing rapid technological changes and geopolitical instability, tech companies are committed to reducing greenhouse gas (GHG) emissions, increasing market participation for businesses in need of transparency, and upholding high governance standards. According to the report, while individual ESG initiatives alone may not bring about transformations, the overall advancement in the industry is a significant catalyst for meaningful long-term change. 

ESG efforts in the technology sector led to additional work on diversity, equity, and inclusion (DEI) in Q2 despite growing resistance in certain markets, particularly in large-scale US-based organizations. The report highlights that DEI is still being supported by numerous tech companies in different regions, highlighting their commitment to supporting communities. Several businesses have modified the presentation of their DEI policies to address legal or political obstacles, particularly in cases related to regulatory approvals or acquisitions. 

Even in this age of changing circumstances, companies continue to support inclusive practices and recognise that employees' lives, communities, and brand values are all important factors. Why? According to the report, these measures are not only in line with social responsibility objectives but also align with shareholder interests and highlight the commercial value of sustainable and inclusive business. 

In response to global economic and political challenges, tech companies are adjusting their ESG strategies to reflect these developments. Given the constant conflict within organizations, supply chain disruptions, and the increasing influence of AI in various industries, companies are embracing practical ESG solutions that meet everyday operational needs while also meeting sustainability goals. 

Cross-sector collaboration is becoming increasingly important. As an example, NTT DATA's membership in the World Business Council for Sustainable Development indicates a preference for partnerships that connect technology companies with wider sustainability networks. The collaborations provide access to international best practices, the opportunity to learn from others and work together on important ESG issues such as emissions tracking and ethical AI development. 

According to the report, there is a stronger emphasis on renewable energy and responsible resource management. Many technology firms are striving to modify their energy usage patterns to incorporate more renewable sources of energy. Meanwhile, a lot of businesses are turning to changing supply chains and data centre operations to drive efficiency and reduce environmental impact. ". 

The report recognizes the overall impact of these efforts as a positive indication that the sector is accountable, even though it may be slow. ESG considerations are becoming more prominent in business strategies, rather than being treated as optional extras. The global impact of technology companies' ESG policies is expected to be driven by their efforts to promote sustainability, particularly as they continue to scale and influence broader economic activities. 

Despite technological firms' long-term prospects, investors, regulators, and consumers continue to prioritize ESG as a key consideration. As stakeholders increasingly scrutinize data privacy, labour practices, and environmental stewardship, companies are faced with the challenge of balancing profitability with accountability. The majority of companies are taking this responsibility seriously, as per the latest report, even if progress is being made slowly. 

It is emphasized that the implementation of ESG in tech sector is subject to a complex interplay of market forces, regulatory expectations and operational challenges, as stated by another commentator on the second quarter of 2025. Companies are not implementing drastic changes but are instead taking steps with long-term strategic thinking to address existing issues and future aspirations. 

The tech industry is demonstrating an ongoing effort to incorporate ESG principles into business models, despite facing various external challenges. It is still focused on steady action, cross-sectoral cooperation and practical solutions to ongoing global issues. The collective effect of these incremental steps is expected to be a significant factor in achieving long-term sustainability goals across the technology sector as this trend persists. 

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© 2025. 
GlobalData | Listed in Tech ESG Watch Q2: Published. Report.