Verizon, Nokia & Kyndryl: Why ESG Matters to Big Tech

The global technology market is worth more than US$5tn. Every corner of modern life is reliant on tech and without it, sustainability would be an impossible goal.
The technology industry as a whole contributes to around 3% of global emissions, a similar footprint size to aviation. Data centres, servers and devices all need to be powered. E-waste containing toxic substances like lead and arsenic is making its way into oceans and soil.
“Irrespective of what AI does or where the world of devices moves, a safe assumption will be that going forward humans and machines will consume more and more data,” says Subho Mukherjee, Vice President, Global Head of Sustainability at Nokia.
“Our main focus is how we can decouple energy consumption from the data growth curve.”
In the modern world, environmental impact can be measured and tracked, value chains can be transparent and efficiency enhancements can be automated. Without technology, none of this would be possible. Businesses across all sectors are harnessing the powers of technology to become more sustainable.
Subho says: “I believe it's important for the technology sector to focus on ESG because of its enabling effect. Think about what AI can do for the energy sector. Think about what networks can do for the manufacturing sector.
“We really need to focus on ESG to be able to multiply the ‘handprint’ of technology.”
IoT technologies and AI can make a big impact through predictive maintenance, for instance. By sifting through large amounts of data quickly and accurately, AI can spot subtle patterns that may be missed by the human eye and potentially prevent catastrophic failures without wasting resources through regular checks.
Faith Taylor, Senior Vice President, Global Corporate Citizenship and Sustainability at Kyndryl, agrees: “Technology is an enabler to accelerate decarbonisation and get to your environmental goals. By leveraging technology, you can go faster and implement on a global basis.”
In 1983, both the internet and the first mobile phone became available. Both of these inventions changed the world, and business, forever. More than 100 years earlier, the invention of the telephone enabled individuals to communicate quickly without travelling. In 2025, nearly everyone from grandmas to business partners can be on the other end of a video call in mere seconds.
“We understand today that as a community, we're global. Technologically, we're basically one world. Because of that connection, we need to leverage ESG in technology,” Faith says.
ESG isn’t just good for people — it’s also good for business. Companies with a strong focus on ESG often perform better financially.
James Gowen, Chief Sustainability Officer and Senior Vice President, Supply Chain and Sourcing at Verizon, explains: “Our employees are looking to work for a company that has sustainability at its heart.
“Secondly, our customers are asking for ESG because they want to make sure that they're working with companies that have sustainability at the core of who they are.
“Investors are looking to invest with companies that have a roadmap and clearly defined, auditable goals for sustainability which are so, so important.
“And then lastly, for society, sustainable business is good business and that's how we think about it.”
What makes ESG different in tech?
Technology businesses are innovation-driven, often investing heavily in research and development. Rather than focussing on technology as a pillar of operations, these businesses create technology and embed it in all of their actions. Often, tech companies offer services and solutions instead of traditional physical products.
These factors mean that technology businesses can approach ESG somewhat differently to other organisations.
“At Verizon, we talk about running the five nines. That means our network must be up 99.999% of the time. Why is that important? Our more important customers are first responders,” James explains.
“If you're running into a fire, God forbid, we want to make sure that network is up for them anytime to provide lifesaving opportunities.
“It's also for that grandma who wants a picture from Disney World. We want to make sure that picture is coming through.
“That's why it's so important to run a sustainable company and then make sure you're enabling your customers to do the same.”
In today’s world, nearly every company uses technology in some form to perform its business operations. From enterprise resource planning to accepting card payments, tech really is everywhere. With new regulations mandating the reporting and reduction of emissions, including across the supply chain, companies expect their technology providers to be doing their part.
“When we look at the fact that we have over 100 million customers on our 5G network across the board, it is so, so important to make sure you're embedding ESG in advance,” James says.
Faith adds: “We have so many silos of data, information and technology platforms, and somehow we need to make all of those harmonise so we can have a level playing field.
“You can only manage something that you understand.
“We can go from there to actually implementing the execution of those solutions. That's step one and we have a lot of work to do.”
How are the tech giants approaching ESG?
While a relatively short acronym, ESG covers a vast range of potential activities.
Kyndryl aims to achieve net zero emissions by 2040 alongside supporting its customers to become more sustainable. As a services business, it puts people at the centre of its operations through building a diverse team and offering holistic wellbeing resources for its employees. It has developed governance programmes grounded in transparency, ethical considerations and a commitment to use technology for a more inclusive and secure global economy.
In the company’s 2024 Citizenship Report, CEO Martin Schroeter says: “These advancements, among others, are a great source of pride for Kyndryls globally. They are also helping us to meet growing requirements from regulators and customers as they increasingly seek documentation of our environmental, social and governance commitments when considering partnering with us.”
Verizon says it aims to effectively govern and manage the environmental and social risks and opportunities that arise from its core business strategy, dedicating its assets to creating a positive impact in a sustainable way. As the United States’ biggest wireless carrier, it has the potential to make a big difference.
James says: “Verizon's ESG corporate strategy focuses on everything from renewable energy and greening the grid, both onsite and offsite, all the way through the products we sell and how we enable our customers through our technology to operate as sustainably as possible.
“It also extends to our people, more than 100,000 employees, and how we give them the opportunity to really focus on working and living green.”
Since 2019, the company has issued US$6bn of green bonds which it says is instrumental to its efforts to meet climate goals. The net proceeds of these have been allocated primarily to renewable energy purchase agreements, supporting new renewable energy projects across the USA.
“When you look at the business cases around, for example, green financing, the US$6bn worth of green bonds we've done are some of the best bonds we've ever put to market,” James explains.
“The response from our financial partners has been just fantastic.”
Nokia aims to be the leader in energy efficiency across silicon, software and systems to minimise its environmental footprint. “The key areas there are climate change, circularity and responsible use of minerals,” Subho explains.
“We want to maximise our handprint — how can others benefit more with what we can produce?”
Equal emphasis on E, S and G
While ‘E’ is perhaps the most discussed letter in ESG, social issues are particularly important in technology. The digital divide affects nearly three billion people around the world, particularly impacting minority groups such as women, people living in rural areas and lower-income countries.
Subho says: “We have a huge role in making sure people are connected and that underserved people in various geographies have the right access to broadband as well as digital skill building.
“It's extremely important that companies like us play a role in not just bringing the power of networks and connectivity to people, but also supporting a huge number of people who have connections but don't have the right level of skills.”
Verizon, like most companies, uses AI to improve its operations, services and products. If not carefully governed, focussing on the ‘G’ in ESG, AI can result in unintended consequences like bias and discrimination. Verizon’s Responsible AI Programme is overseen by a dedicated team and governed by a risk-based approach to avoid potential harm. Its systems are trained to identify and reduce unfair bias and societal harm and it incorporates a privacy-by-design approach.
Kyndryl’s diverse Board of Directors helps to inform its business decisions in an inclusive and sustainable way, made up of 10 leaders from diverse backgrounds. This supports both the ‘S’ and ‘G’ of ESG. Nine of these senior leaders are independent, four are diverse in race or ethnicity and three have global citizenship outside of the US. By bringing together experienced leaders from different backgrounds, a wider range of experiences inform the company and can support a diverse customer base.
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