Introduction
ICT is often perceived as “clean” because much of its impact is out of sight: cloud computing happens in distant facilities, device manufacturing occurs outside the SME’s country, and e-waste leaves the office through a contractor. Yet these impacts are real and measurable, and they accumulate because SMEs collectively represent a major share of Europe’s business landscape. The European Union has framed the “twin transition” as a shared pathway: Europe must become both more digital and more sustainable, and the two must be aligned in practice rather than pursued in parallel.
For SMEs, this alignment is not primarily an abstract climate discussion. It is a management issue that touches costs (energy and cloud bills), operational resilience (supply chains and device availability), risk (data governance and compliance), and reputation (customers and partners increasingly asking for proof of responsible practices). Understanding the hidden environmental cost of ICT helps SMEs prioritise actions that deliver immediate value while supporting longer-term policy goals and market expectations.
Where the “hidden” impacts sit
The environmental footprint of ICT in SMEs typically comes from four interacting layers.
First is direct energy use: laptops, monitors, printers, routers, and on-site servers draw power every day, often with default settings that prioritise convenience over efficiency.
Second is indirect energy use via digital services: cloud storage, video meetings, email, collaboration platforms, and AI tools rely on data centres and networks that SMEs do not see but continuously use.
Third is embodied impact: devices require raw materials, manufacturing processes, and global logistics; much of the climate and resource cost happens before the device ever reaches the office.
Fourth is end-of-life: devices become waste electrical and electronic equipment (WEEE), which is complex, valuable, and potentially hazardous if mismanaged.
A key point for SMEs is that these layers stack together. A “simple” decision—upgrading all laptops every two years, storing all files indefinitely, adding AI tools without retention rules, or running always-on meetings—can shift impacts across energy, materials, and waste simultaneously. The hidden cost is therefore not one number; it is a chain of decisions that can be improved once it is made visible.
Data centres, cloud services, and AI demand
Cloud services can reduce the need for on-site servers, but they do not eliminate energy use; they relocate it. At the global level, the International Energy Agency (IEA) projects that electricity demand from data centres is set to more than double to around 945 TWh by 2030, with AI as a major driver alongside other digital services.
At the EU level, the European Commission has highlighted the difficulty of precise consumption measurement while noting that IEA estimates place EU data-centre energy use around 70 TWh in 2024, rising toward 115 TWh by 2030.
For SMEs, the practical takeaway is not to “avoid the cloud,” but to avoid unmanaged growth. Storage defaults can quietly expand month after month; AI features can introduce new compute loads; and duplicated platforms can multiply data replication. SMEs can reduce hidden energy demand through governance that is easy to implement: storage lifecycle rules, deletion policies, reduced duplication, and procurement criteria that favour efficient services and transparent reporting.
The overlooked footprint of networks and connectivity
Digital activity also relies on telecom networks, including fixed and mobile infrastructure.
The Joint Research Centre (JRC) notes that energy consumption is closely related to climate impact and that telecom operators are taking actions to reduce emissions across
their networks and operations.
SMEs may not control network infrastructure, but they can influence demand patterns: unnecessary high-resolution video, excessive always-on connectivity, and poorly configured remote-work habits can increase traffic and energy use. Practical policies— using audio when video adds little value, limiting background streaming, scheduling large uploads, and encouraging “digital hygiene”—help SMEs reduce hidden network-related impacts without reducing effectiveness.
Embodied carbon and materials in devices
A large share of ICT impact comes before use: mining, refining, manufacturing, and transport. Research synthesised in a peer-reviewed critique by Freitag and colleagues notes that studies estimate ICT’s current share of global greenhouse gas emissions at 1.8%–2.8%, and suggests that when supply-chain truncation is corrected, the share could be 2.1%–3.9%.
For SMEs, this means that hardware replacement cycles matter. Buying “more efficient” devices too frequently can increase total footprint if embodied impacts outweigh energy savings. The European Environment Agency (EEA) emphasises that extending the lifetime and delaying obsolescence of electronics can significantly reduce environmental and climate impacts, supporting EU circular economy objectives.
A realistic SME approach is to set a minimum lifespan target for key device categories (e.g., laptops, monitors, phones), adopt repair and upgrade pathways, and purchase with durability and reparability criteria. This reduces hidden material impacts and improves resilience when supply chains tighten or budgets shrink.
E-waste: the end-of-life problem SMEs can influence
E-waste is one of the clearest “hidden costs” because it is often treated as a disposal issue rather than a resource and risk issue. The EU’s WEEE Directive sets requirements for waste electrical and electronic equipment management, reinforcing the need for proper collection and treatment.
Globally, the scale is rising fast. The Global E-waste Monitor 2024 reports that in 2022 the world generated a record 62 billion kg of e-waste and only 22.3% was documented as formally collected and recycled in an environmentally sound manner. Europe generated the most e-waste per capita (17.6 kg per person) and had the highest documented collection and recycling rate (7.5 kg per person, 42.8%).
For SMEs, the operational actions are straightforward and high impact: maintain asset registers, ensure data wiping and secure handover, use certified collection routes, prioritise reuse/refurbishment, and create internal return systems for small devices. The European Commission has also issued a recommendation aimed at improving the rate of return of used and waste mobile phones, tablets, and laptops—devices that are common in SMEs and rich in critical raw materials.
Why SMEs struggle: skills, metrics, and time
Many SMEs struggle not because they are unwilling, but because ICT sustainability is rarely assigned a clear owner, and the topic sits between departments: IT, procurement, operations, and finance. The JRC’s SME twin transition monitoring work highlights differences in readiness across countries and points to the need to strengthen SME capabilities for both digital and environmental transitions.
In practice, SMEs often lack (1) simple indicators, (2) staff confidence in sustainable ICT decisions, and (3) time to translate policy language into routines. A useful remedy is a “minimum viable governance” approach: a short policy for device lifecycles, a data retention schedule, procurement rules that include durability and return pathways, and quarterly review of a handful of indicators (devices per employee, average device age, cloud storage growth, office electricity use, and e-waste returns). The aim is continuous improvement, not perfect measurement from day one.
Conclusions
The environmental cost of ICT in SMEs is “hidden” because it is distributed across energy use, global supply chains, data-centre and network demand, and e-waste systems, yet it is increasingly material for budgets, risks, and competitiveness. EU policy signals on the twin transition and digital progress underline that digitalisation must be steered, measured, and aligned with sustainability to avoid rebound effects and unmanaged growth.
This is precisely where D-GREEN adds practical value: by translating complex evidence into usable training content, it helps SMEs and VET trainers recognise the hidden cost hotspots and adopt routines that reduce demand, extend device lifetimes, and improve end-of-life returns. In other words, D-GREEN supports SMEs not only to “use more ICT,” but to use ICT more intelligently, with measurable practices that connect daily choices (procurement, data retention, cloud use, device replacement) to EU circular economy and sustainability expectations. As SMEs apply these skills, they strengthen resilience and credibility while contributing to the broader European goal of making the digital transition compatible with climate and resource objectives.
References
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