From tech-first to climate-first: Why we must redefine how innovation is measured

Innovation is accelerating swiftly, unlocking once-unthinkable possibilities that are redefining our world. The World Intellectual Property Organization's Global Innovation Index 2024 reports vigorous growth in robotics, 5G and electric vehicles. But while these fields prosper, green innovation lags, exacerbating environmental indicators.

Carbon emissions and global temperatures continue to escalate, indicating that progress may be happening at an unsustainable cost. Energy-related CO₂ emissions reached 37.4 billion tonnes in 2023, according to the International Energy Agency, a 1.1% increase from the previous year.

Despite growing awareness, widespread education and numerous warnings from policy-makers, climate-first innovation is still struggling to take root. The tools for transformation are alive, but prioritization of climate-first technology lags other areas of innovation. The world is aware of the need, now we need bold, structured action to place climate at the heart of innovation.

Technology has long been recognized as the catalyst for advancement, optimizing processes, enhancing convenience and fueling growth. It has revolutionized how we live, work and connect by enabling everything from cashless payments to automation driven by artificial intelligence (AI). The methods used to push innovation, however, now appear to be increasingly unviable in a world burdened by climate impacts.

Consider the consumer electronics industry. New devices are rolled out regularly, often before the previous models are phased out. This fascination with rapid upgrades has contributed to a mounting e-waste issue. It has previously been estimated that recycling one million smartphones could recover over 35,000 pounds of copper, 772 pounds of silver and 75 pounds of gold. But most devices end up in landfills, contaminating ecosystems and squandering materials.

The digital age carries an expanding environmental cost. Rapidly scaling AI, Internet of Things (IoT) and cloud computing may increase our digital carbon footprint. Training one large language model could release as much CO₂ as five petrol cars emit over their lifetime. Data centres already consume 1–1.5% of global electricity and AI-optimized data centres (which are even more energy-intensive) are anticipated to more than quadruple by 2030.

Innovation shouldn’t continue to disregard environmental concerns. It’s time to shift focus toward eco-centric, systems-level innovation that aligns with nature and uplifts society. Forging a sustainable tech future requires governance, finance and culture to work in sync. These forces are vital to scaling solutions that are efficient, fair and inclusive.

Governments play a vital role in the sustainability transformation. They can align goals with long-term planetary wellbeing through regulation, incentives and funding. The European Green Deal, for example, has targeted at least a 55% reduction in net greenhouse gas emissions by 2030 through policies across climate, energy, transport and taxation.

Environmental and social governance standards and frameworks like the Task Force on Climate-Related Financial Disclosures (TCFD) have elevated accountability within standard reporting practices. Policy gaps persist, however, especially around emerging tech like AI. Organizations’ scope 1, 2 and 3 emissions are tracked, for example, but AI’s environmental and ethical impacts remain mostly unregulated.

Some countries are addressing this. The EU AI Act offers a legal framework for ethical AI use, while the IndiaAI Mission fosters inclusive AI practices by building a comprehensive ecosystem. Still, there is no unified, climate-aligned global tech governance model.

Policy must go beyond compliance. It should be future-oriented, inclusive and enforceable to ensure innovation is equitable.

While policy provides the compass, capital powers the journey. Climate-first technology can’t scale without strong, long-term financial backing.

Public and private finance must promote clean infrastructure, R&D and deployment. Global fossil fuel subsidies reached $7 trillion in 2022, according to the International Monetary Fund. Redirecting this funding toward clean energy and nature-based solutions could unlock massive technology innovation potential.

On a promising note, at COP29, leaders called for a tripling of annual climate finance from the previous goal of $100 billion to $300 billion by 2035 and urged all stakeholders to join forces to scale up total financing to developing countries to $1.3 trillion per year by 2035. To maximize the impact of this pledge, governments and financial institutions must mandate ESG decisions in investment planning, invest in decarbonizing high-emission sectors and direct subsidies to nature-based solutions.

Even strong policy and robust capital flows will lack impact without social trust and cultural acceptance. Culture shapes perceptions of fairness, legitimacy and inclusivity, shaping how communities embrace and evolve in response to change.

Cultural integration requires recognition of traditional practices by tech innovators by engaging local communities, respecting indigenous knowledge systems and embedding them into modern frameworks. Access to the benefits of technological innovation shouldn't be a privilege, but a baseline for all.

Education matters, too. Climate literacy should be taught in schools, workplaces and discussed in the media to reframe climate action as an opportunity, not an obligation.

Culture isn’t optional, it’s a multiplier. When communities feel part of the solution, transformation can become irreversible.

Governments and financiers set the stage, but companies bring technology innovation to life. They translate policy into practice, investment into execution and commitments into results. Many companies are already embedding sustainability into their core operations and infrastructure.

Unilever is striving to ensure 100% reusable, recyclable or compostable plastic packaging for rigid plastic by 2030 and flexible plastic by 2035, for example. And Microsoft’s $1 billion Climate Innovation Fund is allocating $800 million across 63 sustainable technology ventures, alongside high-impact investments in carbon removal and clean electricity.

Tech Mahindra is using the AI-powered Green CodeRefiner to optimize energy-hungry code, improving green impact scores (an independent measure of eco-friendliness based on energy use and efficiency) by 20–40%, reducing scope 2 emissions and boosting developers’ productivity. Startups like Urban Kisaan and Ishitva Robotic Systems are also addressing real-world problems through automation and sustainability – proving that climate-first technology innovation isn’t limited to multinationals.

The companies leading this charge won’t just meet regulations; they’ll set the benchmark for the net-zero economy.

Progress isn’t just about speed or disruption anymore, it’s now about innovation with purpose. Innovations that turn a blind eye to emissions, accessibility or equity risks worsening the climate crisis.

Climate-first technology innovation must evolve from standalone breakthroughs to more integrated, regenerative interventions. We must reimagine innovative systems to serve both people and the planet and rethink how we create. This will help to build a world where technology uplifts more people than it excludes and heals more harm than it causes.