The following questions are tailored for the technology sector and are designed to help technology companies evaluate their climate governance, risk management, and strategic planning processes. While the board may delegate specific climate-related responsibilities to different committees, it is crucial to remember that the board as a whole remains accountable for overseeing and managing climate-related risks and opportunities. The relevance and applicability of these questions will vary depending on the company’s business model, the maturity of its climate governance framework, and its current stage in addressing climate-related challenges and opportunities within the technology sector.

Governance

1. Does the board of directors consider climate-related risks and opportunities as fundamental to the long-term stewardship of the technology company?
2. How has the board integrated climate change considerations into its governance structures? Has the board allocated responsibility for climate oversight to existing committees or established a dedicated sustainability committee? How frequently does the responsible committee report to the full board on climate-related progress?
3. How does the board assess its competency regarding climate issues specific to the technology sector? What steps has the board taken to enhance its climate-related expertise? Has the board considered appointing a climate expert or forming an advisory committee?
4. How does the board ensure constructive interaction with executive management on climate issues? Has the board assigned clear climate-related responsibilities to executives? Has the board worked with management to develop a climate transition plan aligned with the company’s technology strategy?
5. How is executive remuneration linked to achieving climate-related targets?

Risk management

1. Has the company identified climate-related risks specific to the technology sector, such as: What are the physical risks to data centres and infrastructure? What are the transition risks related to energy consumption and carbon pricing? What are the supply chain risks for critical minerals and components?
2. How is the company assessing and mitigating the environmental impact of its AI investments, including energy consumption, water usage in data centres, and the extraction of rare minerals like lithium and cobalt for hardware?
3. What measures is the company taking to ensure its AI-driven climate solutions (e.g., grid optimization, carbon tracking) do not inadvertently increase overall emissions through rebound effects or inefficient scaling?
4. How is the company ensuring its data centres are geographically diversified to mitigate climate risks like wildfires, floods, and hurricanes, and what role does AI play in optimizing site selection?
5. How have climate-related issues been integrated into the company’s existing risk management framework?
6. Is the board overseeing the integration of climate risks into internal monitoring and reporting systems?
7. How is the company using scenario analysis to assess climate impacts on its technology business model and strategy?

Strategy

1. How has climate change been integrated into the company’s strategic planning for technology development and deployment?
2. Has the board adopted a climate action plan with targets for reducing emissions from data centres, product manufacturing, and other operations?
3. Is the board confident that management has a sound strategy for: Decarbonizing across the company value chain? Developing climate-friendly technologies and services? Managing climate-related risks and opportunities in different markets?
4. How does the company’s strategy address both climate risk mitigation, adaptation and potential opportunities for clean technology?
5. How is the company preparing for regulatory risks related to AI’s environmental impact, such as potential carbon taxes on data centre operations or compliance with the European Union’s Artificial Intelligence Act and Canada’s evolving sustainability disclosure standards?
6. What opportunities does the company see in integrating climate tech innovations (e.g., AI for smart grids, carbon tracking) into its core business strategy to meet investor demands for net-zero transitions, and how are these opportunities balanced against risks?

Targets and metrics

1. Has the company set clear, science-based targets for reducing emissions, including: Scope 1 and 2 emissions from operations and energy use? Scope 3 emissions from the technology supply chain and product use?
2. What metrics is the company using to assess climate-related risks and opportunities specific to the technology sector?

Disclosure

1. Is the company aligning its climate-related disclosures with frameworks like TCFD or global standards from the ISSB?
2. How is the board ensuring that climate-related disclosures are clear, balanced, and decision-useful for investors?
3. Is the company reporting on areas where climate progress has been insufficient, or where challenges have arisen?
4. How is the company responding to investor and stakeholder expectations for disclosing the climate impact of its AI investments, including Scope 3 emissions from partnerships like those with AI vendors, and what metrics are used to demonstrate progress?
5. How is the board overseeing the verification and assurance of climate-related disclosures?

Innovation and technology

1. How is the company leveraging its technological expertise to develop innovative solutions for climate change mitigation and adaptation?
2. How is the company leveraging AI and digital technologies to develop adaptation and resilience (A&R) solutions, such as insurance products, urban cooling systems, or risk management tools for climate-related disasters like wildfires and floods, and what investment opportunities does this present?
3. What steps is the company taking to improve the energy efficiency of its products, services, and data centres?
4. How is the company addressing the environmental impact of e-waste and promoting circular economy principles in its operations?

Technology-specific risks and opportunities

1. How is the company assessing and managing the environmental impact of its data centres? What strategies are in place to improve data centre energy efficiency? Has the company set specific targets for reducing data centre emissions?
2. How is the company addressing the environmental impact of e-waste generated by its products? What product take-back or recycling programs has the company implemented? How does the company design products for longevity and repairability?

AI and climate impact

1. Has the board considered the climate-related risks and opportunities associated with emerging technologies like AI and blockchain?
2. How is the company assessing and managing the potential impact of AI on its carbon footprint, particularly considering increasing energy demands from data centres? What measures are in place to transition to renewable energy sources? Is the company investing in energy-efficient AI models or hardware to reduce its carbon footprint?
3. What specific metrics are used to evaluate the environmental trade-offs (e.g., data centre energy vs. AI-driven efficiencies) associated with the company’s AI initiatives, and how are these factored into strategic decision-making?
4. What steps are being taken to source rare minerals ethically and sustainably for AI hardware? Is the company actively exploring low-carbon computing technologies?
5. How is the company aligning its AI deployment with evolving global regulations on environmental impact? How does the board ensure AI investments align with long-term ESG goals? Has the company engaged with policymakers or industry groups on sustainable AI governance? How is the company adapting its AI strategies in response to emerging carbon taxation or emissions disclosure requirements? What measures are in place to ensure compliance with international standards on AI sustainability, such as those from the EU or UN?
6. How does the board align AI investment incentives with the company’s sustainability commitments?
7. How does the company ensure that its climate-related disclosures provide a balanced view of both the potential benefits and environmental costs of its AI investments?

Supply chain and scope 3 emissions

1. How is the company engaging with its suppliers to reduce Scope 3 emissions? Has the company set targets for supplier emissions reductions? What incentives or requirements are in place for suppliers to improve their environmental performance?
2. How is the company addressing the environmental impact of procuring rare earth minerals and other critical materials in its supply chain?
3. Has the board assessed the climate-related risks in the company’s global supply chain, including potential disruptions due to extreme weather events?

Innovation and climate solutions

1. How is the company leveraging its technological expertise to develop innovative solutions for climate change mitigation and adaptation?
2. Has the board established a process for evaluating and investing in climate-related technologies and business opportunities?
3. How is the company collaborating with other organizations or participating in industry initiatives to advance climate action?
4. What risks does the company face in scaling A&R climate tech investments, including early-stage funding challenges or the lack of major exits, and how is management addressing these?

Regulatory compliance and reporting

1. How is the board ensuring compliance with evolving climate-related regulations, such as carbon pricing and mandatory disclosure requirements?
2. Is the company prepared to meet the reporting requirements of international standards like the ISSB?
3. How is the board overseeing the company’s approach to carbon offsets or credits, if applicable?

Employee engagement and culture

1. How is the company fostering a culture of sustainability and climate awareness among its employees?

Digital solutions for climate action

1. How is the company leveraging its digital expertise to develop solutions that help other sectors reduce their carbon footprint?
2. What initiatives has the company undertaken to use AI, IoT, or big data analytics for environmental monitoring and climate risk assessment?

Remote work and digital infrastructure

1. How has the shift towards remote work impacted the company’s carbon footprint, and what strategies are in place to optimize this shift?
2. What measures is the company taking to ensure its digital infrastructure is resilient to climate-related disruptions?
3. How is the company balancing the environmental benefits of remote work with the potential increase in employees’ home energy consumption?

Green software development

1. Has the company implemented principles of green software engineering in its development processes?
2. What metrics does the company use to measure and reduce the energy consumption of its software products?
3. How is the company educating its developers about the environmental impact of code efficiency?

Quantum computing and climate

1. If applicable, how is the company exploring the potential of quantum computing to solve complex climate-related problems?
2. Has the board considered the energy implications of quantum computing development and how to mitigate its environmental impact?

Cybersecurity and climate risks

1. How is the company integrating climate-related risks into its cybersecurity strategy, particularly for critical infrastructure?
2. Has the board considered the potential cybersecurity risks associated with smart grid technologies and other climate-related digital solutions?

Blockchain, AI and sustainability

1. If the company is involved in blockchain technology or AI, how is it addressing the energy consumption concerns associated with this technology?
2. Has the company explored the use of blockchain to improve supply chain transparency and sustainability tracking?

Digital inclusion and climate justice

1. How is the company ensuring that its climate-related technological solutions are accessible and beneficial to underserved communities?
2. What steps is the company taking to bridge the digital divide in a way that also promotes environmental sustainability?

Circular economy

1. How is the company incorporating circular economy principles into its product design and life cycle management?
2. What initiatives has the company undertaken to extend the lifespan of its products or components?

Green cloud computing

1. If the company offers cloud services, what measures are in place to improve the energy efficiency of its cloud infrastructure?
2. How is the company helping its cloud customers optimize their resource usage and reduce their carbon footprint?

Technology industry collaboration

1. How is the company participating in industry-wide initiatives to develop standards for sustainable technology?
2. What partnerships has the company formed with academic institutions or start-ups to advance climate-friendly technologies?