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This paper has been provided by Forum for the 2. What is sustainable
Future in close co-operation with the EITO Task development?
Force.
Although there are many definitions of sus-
tainable development, the most commonly
1. General overview
quoted comes from the Brundtland Commis-
The chapter aims to: sion’s 1987 report, “Our Common Future”.
– introduce the concept of sustainable devel- Here, sustainable development is defined as
opment; “development which meets the need of the
present without compromising the ability of
– examine the impacts and opportunities
future generations to meet their own needs”. 1
created for sustainable development by the
rapid penetration of ICT into society and This chapter defines sustainable develop-
culture; ment as:
– suggest the means for mitigating adverse af- A dynamic process which enables all people
fects and encouraging positive outcomes for to realise their potential and improve their qual-
all in the penetration of ICT. ity of life in ways that simultaneously protect
An innovative framework has been devel- and enhance the Earth’s life-support systems. 2
oped that allows a detailed and comprehensive Implicit here is that economic, social and
analysis of the environmental, social and eco- environmental dimensions are equally vital and
nomic effects and opportunities of ICT in the inter-connected:
context of sustainable development.
– Economic sustainability means economic
The chapter will conclude that in some cases growth without making undue demands on
ICT is of direct benefit to the goals of sustain- social or natural resources.
able development, and in others detrimental. In – Environmental sustainability means not only
most cases, however, the overall effects will minimising impacts on the environment, but
only become clear in the medium to long term. building natural resources and safeguarding
It is shown that despite its great potential, them for the future.
ICT is not in itself a force for sustainable devel- – Social sustainability means building, and not
opment, but has both positive and negative ef- undermining, social equity.
fects. In order to maximise the positive effects 1 Brundtland Commission,
and minimise the negative, the development “Our common Future”,
1987
and application of ICT should be guided by
policy makers in government, business and civil 2 Forum for the Future
definition of sustainable
society. development.
Part Two · E I T O 2002 The impact of ICT on sustainable development
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x
Together these three spheres of sustainabili- Yet the potential for integration between
ty are commonly referred to as “the triple bot- policies on sustainable development and the
tom line”, a term first coined in 1997 by John transition to eEurope remains under-exploited.
Elkington, director of the sustainable develop-
ICT presents opportunities to resolve tradi-
ment consultancy SustainAbility. 3 As well as
tional trade-offs between economic growth, the
setting goals for economic performance, busi-
environment and social cohesion. Equally, there
nesses and economies should also set social and
is the opportunity to integrate sustainability cri-
environmental performance goals. Most impor-
teria into the Information Society at an early
tantly, performance in one sphere should not
stage in its development, maximising the social
undermine performance in the other two.
and environmental opportunities of ICT and
mitigating its adverse impacts.
2.1. Sustainable development
and ICT 2.1. 2. Challenges in integrating the
agendas of sustainable development
The growing acceptance of sustainable de-
and the Information Society
velopment as a goal and the progress of ICT
share many characteristics as drivers for change In assessing the overall sustainability im-
within modern economies. Both require us to pacts of ICT, several challenges must be con-
rethink the nature of goods and services and sidered:
both have the capacity to transform the rela- – The development and application of ICT
tionship between governments, companies, citi- through the economy and society is as yet at
zens and consumers. However, there have been an early stage. It is still only possible to take
surprisingly few attempts to assess whether the an educated guess as to the medium- and
growing acceptance of the sustainable develop- long-term effects.
ment agenda and the growth of ICT will com-
– ICT is pervasive and enabling and, by any
plement or conflict with one another.
measure, is advancing rapidly in terms of
2.1.1. Sustainable development power, performance and affordability. These
and ICT policy convergence trends are unlikely to change in the near
term. ICT drives the advance of other new
Figure 1 illustrates convergence between the
technologies, whose impacts need to be as-
two policy agendas for sustainable development
sessed separately. Radical new technologies
and the Information Society.
such as biotechnology have the potential to
With the Information Society and sustain- entirely change the current terms of refer-
able development both policy priorities, integra- ence of the links between ICT, the economy,
tion between the two policy agendas should be society and the environment.
inevitable. The Lisbon agenda refers to eco- – ICT is constantly giving rise to new social
nomic sustainability and social cohesion, and phenomena which need to be factored into
the eEurope Action Plan places significant em- the equation. One example is the develop-
phasis on social inclusion in the Knowledge ment of online communities.
Society through investment in people and skills.
The conclusions of the Göteborg European
3 Elkington, J. “Cannibals
With Forks: The Triple Council refer to the need to “promote innova-
Bottom Line of tion to develop new technologies which use
21 st Century Business”,
Capstone, Oxford, 1997 fewer resources and reduce pollution”.
European Information Technology Observatory · E I T O 2002
252
Figure 1
Sustainable development Information Society Sustainable
development and ICT
policy convergence
UN Earth Summit, Rio, 1992
Global action plan agreed by b
149 countries endorsing the aims 1999
of sustainable development European Commission launches
“eEurope” strategy
b
Treaty of Amsterdam, June 1997
Member states strengthen commitment b
to considering environmental and social Lisbon European Council,
cohesion in all policy areas March 2000
Heads of state agree to make Europe
b “the most competitive and dynamic
Helsinki European Council, knowledge-based economy in the world,
December 1999 capable of sustainable economic growth
with more and better jobs and greater
European Commission commits to social cohesion”
putting forward proposal “dovetailing
policies for economically, socially and
ecologically sustainable development” b
June 2000, eEurope Action Plan
2002 agreed
b
Göteborg European Council, ICT to drive knowledge economy.
June 2001 Commitment to:
– Better Internet access
Environmental dimension added to – Investment in people and skills
Lisbon agenda. Sustainable development – Greater use of the Internet
defined as central to all
b b b
World summit on sustainable development Johannesburg, September 2002
EU to seek a global deal on sustainability. Strategy explicitly mentions
potential for Information Society to “strengthen economic development
with less pressure on the environment, while ensuring access and
capacity for developing countries”
Part Two · E I T O 2002 The impact of ICT on sustainable development
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x
– In response to the development of ICT, new above. Since these spheres in reality exist in a
regulations are constantly coming into force. dynamic relationship, the evaluation stage at
By channelling the development of ICT in a the end of this chapter will be an opportunity to
particular direction, regulations may pro- make broader, overall assessments for sustain-
mote or impede synergies between ICT and ability as a whole, highlighting the linkages
sustainable development. The effects of new across the triple bottom line.
regulation need to be understood and fac-
The effects of ICT have also been separated
tored into new research being undertaken.
according to the different stages in their devel-
– Despite the growing body of research, many opment and deployment. This allows the identi-
data gaps still exist and there is much dis- fication where possible of how a positive oppor-
agreement in certain areas. tunity may over time have a negative spill-over
or vice versa and hence where action could be
3. The framework for analysis taken to maximise the positive outcomes. Ef-
Research to date into ICT and sustainability fects are divided into first, second and third
has failed to create a conceptual framework that orders, as shown in Table 1.
presents an aggregated picture of the impacts Within each cell of the framework, key areas
and opportunities of ICT and sustainability over have been selected that demonstrate the extent
time. Without such a framework, determining of existing understanding. While positive effects
how to maximise the potential opportunities cannot be categorically separated from negative,
and minimise the negative impacts of ICT and where possible attempts are made to highlight
sustainable development is problematic. the current balance between the two.
For the sake of clarity the three-spheres mo-
del of sustainability has been used, based on
Elkington’s triple bottom line as described
Impacts/opportunities sphere
254
Table 2
First order effects Second order effects Third order effects Environmental
Design and manufacture of Increase and decrease in use of De-coupling economic growth and sustainability and ICT
ICT equipment transport energy consumption
– ICT production is a relatively – Increase in home deliveries as a – Possibilities of reducing energy
lightweight industry result of E-commerce will have used per unit GDP
– Use of toxic components significant environmental impact
– New waves of technology are unless well co-ordinated
more energy-efficient – Telework reduces travel miles
for employees
– Telematics reduces traffic
congestion, journey times and
therefore pollution
– Rebound effects from increased
leisure travel
x
4.1. First order impacts – A study for the European Union in 1998 5
and opportunities suggested that the production of a personal
computer, including material production,
Production of ICT equipment does not place
manufacture and distribution, would lead to
the same level of demands on natural resources,
the release of 0.19 tonnes of greenhouse
nor is it as polluting, as many other industries.
gases, 36 kg of overall waste, and require
The design, manufacture, operation and dis-
3.6 GJ of energy.
posal of ICT does however have an overall
negative impact on the environment, although Efforts are being made to minimise the
some action can be taken to mitigate these im- amount of resource needed in the production of
pacts. ICT. This makes economic as well as environ-
mental sense.
4.1.1. Design and manufacture
of ICT equipment – More efficient chips mean more processing
power for the amount of resource/energy re-
There are elements included in the design quired. Every generation of chips reduces in
and manufacture of ICT that could be seen as size by approximately a factor of 0.7. 6
unsustainable.
– Mobile telecoms network operators are in-
Damaging materials are used in ICT compo- vestigating the possibility of using renewable
4 http://www.news-journalon-
nents, for example: or low-impact energy sources to power base
line.com/2001/Apr/30/
– The batteries in mobile telephones contain stations.
AREA1.htm. Although a
large proportion of this toxic metals such as lithium or cadmium. – The manufacture of mobile phones now in-
water can be reused for
other purposes, no micro- The ores of such metals must be quarried corporates measures such as material identi-
chip manufacturers cur- fication and easy disassembly, to make recy-
rently recycle water for re-
and then undergo lengthy and expensive
use in the washing process, refinement processes, causing significant en- cling easier.
as the water must be pure
vironmental disruption.
and particle-free.
4.1. 2. Operation of ICT equipment
5 Atlantic Consulting (1998), – Cathode ray tubes contain large amounts of
“LCA study of the product
lead, shown to have high levels of toxicity. Operation of ICT equipment accounts for
group personal computers
in the EU Ecolabel the greatest demands on energy and natural re-
– Many devices are coated with flame re-
Scheme” sources. For example, the use phase of a perso-
tardants that contain toxic compounds.
6 Schauer, T., “What are the nal computer in the EU has been calculated to
conditions for a sustainable
Information Society?” The manufacture of ICT equipment is re- produce 0.45 tonnes of greenhouse gases, 108
In: Towards a Sustainable source-intensive: kg of waste and 10 GJ of energy per unit 7 – sig-
Information Society: Report
of the Conference on 21–22 – One study showed that the production of the nificantly more than in the production process,
February 2000
average computer chip requires 45.46 litres as Table 3 illustrates.
7 Atlantic Consulting (1998),
“LCA study of the product of water, used primarily for washing. One
group personal computers chip plant in the USA uses between 4.5 and
in the EU Ecolabel
Scheme” 13.5 million litres of water a day. 4
256
x
Figure 2
The effects of ICT
on the use of transport
Decrease Increase
E-commerce reduces need More deliveries
to travel to shops
Teleworking reduces need Geographically longer supply chains
to travel to work
Telematics reduces congestion and Rebound effects
shortens journeys
m n
? ?
Benefit to the environment
258
The net effects on transport will remain un- or slow-moving traffic. The effect is to signifi-
clear however until B2C E-commerce is pro- cantly reduce congestion and travelling time,
perly established. The eEurope Action Plan and therefore vehicle emissions. ITGS was
Benchmarking Report 2001 13 shows that cur- shown to reduce travelling time in rush hours
rently in the EU as a whole fewer than 5 % of by 50 % compared to conventional static naviga-
Internet users make online purchases regularly, tional systems. 18 The Dutch government aims in
approximately 1.7 % of the population. its programme, “Telematics in traffic and trans-
port” to reduce vehicle miles within the Nether-
ii. Telework and travel
lands by 25 % in the period 1998–2003, in part
Remote working using the Internet to access through its use of ITGS.
office systems, for example via Virtual Private
iv. Rebound effects
Networks or using teleconference and videocon-
ference technology, 14 has been possible for a The application of ICT in trade, work and
long time. A barrier to widespread take-up has travel systems could on balance cut the de-
been the lack of broadband access in homes, mands of transport on the environment. How-
but in some parts of Europe broadband avail- ever, it is unclear what consumers do with the
ability is increasing rapidly. 15 time that they save by ordering goods online 13 http://europa.eu.int/
rather than making a car journey to the shops, information_society/
When promoted by employers, teleworking eeurope/benchmarking/
or what teleworkers do with the time they save index_en.htm
has been shown to significantly reduce travel
by not driving to work. Is this extra time used
miles. One Swedish company with 200 employ- 14 Telephone and video-
to make additional journeys by car, for leisure conferencing at BT has
ees has managed to reduce home-to-work travel created savings of 150
purposes perhaps, that otherwise would not
by 74,000 km a year. 16 One major European - million miles across all
have been made? Similarly, when drivers see modes of transport and
telecommunications company now has 4,000 avoided emissions of
open roads and free-flowing, telematics-control- another 34,000 tonnes of
homeworkers who between them save approxi- CO 2 . For more information
led traffic, will they be tempted to drive more,
mately 12.5 million commuter miles per annum see James Wilsdon (ed.),
in the same way that building more roads seems “Digital Futures: an
– equating to a saving of 1,000 tonnes of carbon agenda for a sustainable
to create more traffic? These “rebound” effects digital economy”, 2001
dioxide emissions. 17
pose complex research questions that must be 15 See “The Development
iii. Telematics: answered before the net contribution that ICT of Broadband Access
Platforms Across Europe”
efficient transport using ICT is making to environmental protection can be report for the European
accurately judged. Commission, available at
One means of ensuring more efficient travel http://www.europa.eu.int/
information_society/
patterns for all vehicles is the utilisation of tele- 4. 2. 2. ICT in business systems eeurope/news_library/
matics systems. The term telematics has evolv-
ICT has had a positive effect on business 16 Lennart Forseback, “Case
ed to refer to in-car systems that combine Glo- studies of the Information
efficiency, for example through: Society and Sustainable
bal Positioning Satellite (GPS) tracking and Development”, May 2000
other wireless communications including access – consolidating supply chains through the use
17 James Wilsdon (ed.),
to the Internet. The most significant application of B2B E-commerce portals; “Digital Futures: an
agenda for a sustainable
of this technology is Intelligent Traffic Guid- – use of E-procurement in larger organisa- digital economy”, 2001
ance Systems (ITGS). ITGS can plot the tions, bringing economy of scale savings; 18 Schauer, T., “What are the
quickest or most efficient route from A to B, – use of computer-driven management sys- conditions for a sustainable
Information Society?”
taking into consideration traffic flow systems tems and the implementation of databases; In: Towards a Sustainable
such as one-way streets or speed controls and, Information Society:
Report of the Conference
more importantly, avoiding areas of congested on 21–22 February 2000
Part Two · E I T O 2002 The impact of ICT on sustainable development
x
x 259
x
– use of telematics in manufacturing pro-
cesses; The energy use of the Internet
– use of ICT to monitor office systems such as The Internet is central to hopes for a “weight-
air-conditioning. less” new economy, but a heated debate rages
over the real energy demands it exacts.
An office supply company established an Mark Mills in a Forbes article, “The Internet
Internet-based invoicing system and cut the begins with coal” 21 asserted that use of the In-
amount of paper it used from 13 million sheets ternet accounts for as much as 8 % of the to-
a year to one million sheets a year. 19 tal electricity demands of the US, and that
Such systems are generally introduced into therefore energy capacity in the US needs to
companies because they represent medium-to be increased to meet the demands of the new
long-term cost savings. Often however, cost economy. Others 22 have maintained however
savings are reflected as environmental savings, that the figure is much lower, at around
as more efficient processes require less energy 1–2 %. The only European study to date was
and create less waste. conducted by the Wuppertal Institute in Ger-
many in 2000. It estimated that use of the In-
For example, an efficiency programme using ternet accounted for 1 % (4,000 Gigawatts) of
heating, ventilation and air-conditioning control Germany’s electricity demand. 23 The institute
systems in a New York college saved € 11.2 mil- is now conducting research to show the ener-
lion at the same time as cutting energy use by gy implications of one hour of Internet use.
20,000 kilowatts 20 and carbon dioxide emissions
by 48,000 tonnes. The broad range of estimates is due partly to
a lack of information about levels of usage.
4. 2. 3. Virtualisation of material products Also crucial is where the boundaries of use
19 Financial Times article
The application of ICT can decrease the are drawn: should analysis stop at the direct
Thursday 6 December 2001
amount of material products circulating in some energy consumption of PCs, networks and
20 http://www.nypa.gov/
areas of the economy. “E-books”, which exist servers, or should it be extended to include
21 Mark Mills, “The Internet
only as downloadable electronic files, are one second and third order effects, where the data
begins with coal: a prelim-
inary exploration of the example: Penguin books planned to have 200 is more ambiguous?
impact of the Internet on
electricity consumption”, titles available electronically by the end of 2001. However, in practice, the virtualisation of
1999
The result could be the use of less paper in the products may be balanced by a counter-process
22 Joseph Romm, “The publishing industry, less glue for binding, less of “devirtualisation” in which E-books and on-
Internet economy and
global warming”, Center filler for glossy pages, less freight on the trans- line bank statements are printed out and MP3
for Energy and Climate
Solutions, 1999; Koomey
port network and so on. The technology used files burned onto CDs. If enough virtual prod-
et al., “Initial comments by MP3 files similarly could result in the pro- ucts are subsequently devirtualised, the net im-
on “The Internet begins
with coal”, 1999 duction of fewer CDs. Likewise online banking pact on the environment is much greater than if
23 Barthel, C., Lechtenböh-
means that printed statements are no longer no virtual products existed in the first place: the
mer, S. und Thomas, S., necessary. resources used in producing the virtual product
www.internet.CO 2 ,
Wuppertal Institute, 2001 are added to those used when consumers
European Information Technology Observatory · E I T O 2002
260
Figure 3
Virtualisation of
material products
Devirtualisation of
virtual product
Energy
consumption
Positive environmental effects will only accrue from the virtualisation of material goods if the
efficiencies of the virtualisation process are not undermined by inefficient “devirtualisation” en masse.
produce the material product themselves in a In similar fashion, ICT provides the means
process where the efficiencies of large-scale, for producers to match supply and demand
centralised production are lost, as illustrated in more closely and so reduce wastage through
Figure 3. over-production. Many seats go unoccupied in
aeroplanes for example. Some E-commerce
4. 2.4. Effects on product lifetimes
sites offer these seats at a lower price and
Use of ICT in the design and manufacturing thereby increase the running efficiency of the
processes of a wide range of products creates airlines.
shorter product cycles. New products can be de-
4. 2. 5. Distribution and manipulation
signed and produced at a faster rate and so be-
of environmental information
come obsolete sooner.
The distribution and manipulation of envi-
However, ICT also offers the opportunity to
ronmental data has been enhanced by ICT. The
extend product lifetimes by facilitating online
availability of this data has been invaluable in
exchanges. For example, online auction sites
making the case for and enabling environmental
are able to put an unprecedented number of
action.
buyers and sellers in contact with each other.
One such site claims 30 million registered users ICT has been used to collect, collate and de-
and 5 million items for sale worldwide at any liver the data that provides evidence of environ-
one time. mental decline: the amount of rainforest being
cleared in Brazil, the level of greenhouse gas
Part Two · E I T O 2002 The impact of ICT on sustainable development
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Table 4 ICT has enabled and will enable action to be
Electricity consumption Electricity 1980 1998
consumption (kilowatt-hours) (kilowatt-hours) taken to halt environmental decline. The Kyoto
per capita 24
per capita Protocol on climate change in 1995 established
the principle of global emissions trading, to al-
Austria 4,371 6,175
low countries that have not been able to reduce
Belgium 4,402 7,249 emissions to compensate those that have. The
Denmark 4,222 6,033
complex calculations necessary for this would
not be possible without ICT.
Finland 7,779 14,129
262
x
Table 5
Social sustainability First order effects Second order effects Third order effects
and ICT Job creation Access to information Cultural homogeneity or cultural
diversity?
– Jobs created in production of – Health information available – ICT promotes homogeneity and
ICT equipment online diversity at the same time
– Government information
available online
is seen by many as reinforcing social exclusion, favours the highly skilled. As former US Labor
through the operation of the digital divide. Secretary, Robert Reich, argues, “a great pre-
mium is placed on people who are innovators
5.1.1. Job creation
and a rapidly decreasing value on people who
The growth rate of jobs in the Information are in routine production”. 30 The rise of the
Society in 1999 was approximately 8 % in Eu- knowledge worker threatens lower skilled work-
rope. Each job in the IT industry creates four ers with marginalisation.
jobs in the wider European economy, either up-
5.1. 2. The digital divide
stream through suppliers or downstream in
service industries which rely on packaged soft- The distribution and use of ICT has been
29 “Benchmarking Report ware. 29 New jobs in the ICT sector may have viewed as a means of narrowing the gap be-
following-up the “Strate-
gies for Jobs in the
given the individuals concerned an opportunity tween the world’s rich and poor. However, the
Information Society”, to participate in and contribute to society. difficulties of establishing universal access
Commission Staff Working
Document, February 2001 could serve to reinforce current patterns of
The overall picture is, however, less rosy.
social exclusion.
30 Lecture given at the The constant upgrading of skills required in this
London School of
Economics, 14 th May 2001 sector to keep pace with changes in technology
European Information Technology Observatory · E I T O 2002
264
Figure 4
% Internet access –
% population 33
60
54.3
50
40
30 28.2
20
10
3.9 3.2 2.3 0.6 0.4 0.4
0
US High-income East Europe and Latin America East Asia and Arab states Sub-Saharan South Asia
OECD (not US) Commonwealth and the the Pacific Africa
of Independent Caribbean
States
Figure 4 shows that Internet access is the pre- Discrepancies in access to ICT exist within
serve of the richest countries in the world and Europe itself. While 65 % of households in Swe-
has made very little impact elsewhere. Table 6 den and 60 % in the Netherlands have Internet
illustrates the scale of difference between Euro- access, the figures for Spain and Greece are
pean Union countries and some of the poorest only 25 % and 10 % respectively. 34 Similar differ- 31 http://www.dotforce.org/
countries in the world, in terms of access to ences exist within countries, both between re-
32 http://www.digitaldividend.
telephones. As a general rule, the poorer the gions and along socio-economic lines. High in- org/index.htm
country, the less ICT is available. come earners in the EU enjoy three times 33 United Nations Human
higher Internet usage rates than low income Development Report 2001.
International initiatives such as the G8’s Figures for 2000, p. 40
earners and traditionally excluded groups such
DOT Force 31 are seeking to address the discrep-
as the elderly and unemployed, have particular- 34 http://europa.eu.int/
ancies. At the same time, some multinational information_society/
ly poor access to the Internet. 35 eeurope/benchmarking/
ICT companies are investing huge sums in ac- index_en.htm
cess for the developing world. An initiative by The European Union’s eEurope Action Plan 35 “Benchmarking Report
one ICT equipment manufacturer will see the agreed in 2000 focuses heavily on increasing on- following-up the “Strate-
gies for Jobs in the
company sell, lease or donate over € 1 billion line access by providing a cheaper, faster, more Information Society”,
worth of its products to developing countries. secure Internet, increasing public access points Commission Staff Working
Document, February 2001
According to the World Resources Institute’s and improving IT skills. 36 Within this frame-
36 http://europa.eu.int/
Digital Dividend project, there are significant information_society/
business opportunities in creating appropriate eeurope/action_plan/
actionplantext/index_en.
technologies for use in the developing world. 32 htm
Part Two · E I T O 2002 The impact of ICT on sustainable development
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Table 6
The digital divide – Country GDP per capita Telephone mainlines/ Cellular mobile
telephone penetration (purchasing power 1,000 population subscribers/
in selected countries 37 parity US$, 1999) (1999) 1,000 population (1999)
Angola 3,179 8 2
Pakistan 1,834 22 2
37 Mainline and cellular
telephone penetration in
Bangladesh 1,483 3 1
selected countries,
ranked by UN Human Yemen 806 17 2
Development Index, see:
UN Human Development Sudan 664 9 0
Report 2001, p. 60
Note: These figures do not always correspond with Table 8, The ICT market in Europe, and Tables 91 and 93 of the Statistical outlook.
European Information Technology Observatory · E I T O 2002
266
x
ii. Access to government information there are concerns that regulation of the Inter-
net will undermine the medium’s strengths of
The eEurope Action Plan 40 aims to create a
freedom and flexibility. Furthermore, it is as yet
socially inclusive knowledge economy in Eu-
unclear where responsibility for content on the
rope. It set 2002 as the target date for all
Web lies, as the recent controversy in France
government information to be available online,
over the sale of Nazi memorabilia showed.
on the basis that easy access to public service
information can play a significant role in pro- Business has taken an active stance in re-
moting social inclusion. sponse to abuse of the Internet. Some Internet
service providers have restricted the type of
Online government information can play a
content which can be accessed through their
broader role in increasing government transpar-
search engines.
ency and accountability towards its citizens.
This is potentially significant in boosting 5. 2. 3. Access to better services
government legitimacy at a time when voter
i. Health
turn-out in elections is decreasing.
Surgeons directing operations via remote
However, those most in danger of social
online access may make the headlines, but the
exclusion, such as the elderly or unemployed,
range of possibilities for using ICT to improve
are also those least likely to have access to the
healthcare services is much broader. Fully
Internet. This is not adequately mitigated by
searchable online medical records, Web-linked
the provision of public access terminals. The
health call centres, online patient monitoring
success of “E-government” is dependent on par-
and remote consultations could provide patients
ticipation by citizens and at present only around
with a better, more efficient healthcare system.
50 % of Internet users in the EU have accessed
At the same time, online monitoring and con-
government information online. 41
sultation may improve quality of life if patients
5. 2. 2. Security challenges can be treated at home rather than in hospital.
The ability of ICT to overcome distance means
Trust must underpin all transactions – finan-
40 For more information that E-health services offer specialist healthcare
please see EITO 2002, Part cial and social – if the Internet is to operate ef-
Two: “E-government and
to those in remote locations, as well as to ex-
ficiently and bring benefits to society. However,
the business environment” cluded groups such as prisoners.
as a recent survey suggests, E-commerce is
41 Benchmarking Report
following-up the “Strate- being stifled by concern over Internet security. 42 The barriers to rolling out ICT in healthcare
gies for Jobs in the With significant amounts of personal informa- beyond individual initiatives are significant. As
Information Society”,
Commission Staff Working tion entered online, including financial informa- with so many applications of ICT, telemedicine
Document, February 2001
tion, privacy and security have become a pri- depends on inclusive access to high bandwidth,
42 Survey commissioned by ority. reliability and security. 43
Confederation of British
Industry, in Financial
Times, 31 st August 2001 The Internet is also the perfect tool for
43 “E-Life or E-death?
criminal groups such as child pornographers
A White Paper on the and terrorists, to organise globally. There is
Social Implications of
Cyber Medicine”, Peter clearly a conflict between protecting the privacy
James and Peter Hopkin- and security of legitimate users of the Internet,
son, Sustain IT, August
2000 and regulating the Internet to prevent abuse:
European Information Technology Observatory · E I T O 2002
268
x
Figure 5
Proportion of employed %
people engaging
20
in telework 47
18 17.4
16
14
12.4
12
10.1 10.4
10 9.6
6 5.6 5.1
4.6
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5. 2. 5. Telework On the negative side, rather than being li-
berating, the removal of the workplace commu-
At present 5.6 % of workers in the EU tele-
nity can undermine employee morale. The crea-
work. 46 Denmark leads the way with 17.4 % of
tion of telecottages and telecentres may respond
workers regularly or occasionally teleworking
to the need for social interaction. One company
(see Figure 5). Teleworking among managers is
has created seven telecentres in the Parisian
more common: 42.2 % of managers in Denmark
46 Benchmarking Report suburbs close to where employees live, so that
following-up the “Strate- and 26.7 % in the UK telework.
gies for Jobs in the social contact can be maintained without entire-
Information Society”, ly compromising flexibility. 48
Commission Staff Working
There are numerous social benefits of tele-
Document, February 2001 work, for example:
Pay and working conditions can be worse for
47 Eurobarometer survey on – less time spent travelling to work; some teleworkers: Europe has over one million
e-work, November 2000.
Telework is defined as – greater flexibility with working hours; people (growing to 2.5 million by 2006) 49 doing
“carrying out all or part of
their work away from their – more time spent with family; repetitive teleworking jobs such as data-entry,
normal places of activity,
usually from home, using
copy-typing and telesales, on less pay than their
– inclusion in the workforce of hitherto ex-
ICT”. non-teleworking counterparts. Denmark and
cluded groups such as the physically dis-
48 e-work 2001, Information Ireland are currently the only two countries in
Society Technologies, abled, carers and parents with young chil-
Europe with codes of practice covering tele-
September 2001 dren;
workers. The European Trades Union Congress
49 e-work 2001, Information – improved opportunities for work in remote
Society Technologies,
September 2001 areas.
European Information Technology Observatory · E I T O 2002
270
and the employers’ organisation UNICE (Union – Motivated protestors have attacked compa-
of Industrial and Employers Confederations of nies through their Websites using hacker
Europe) are negotiating an agreement to cover skills, bringing down computer systems and
health and safety, work organisation and union Websites.
protection for teleworkers. – Malcontents send E-mails in large numbers
5. 2. 6. New communities online to protest against unpopular policies. When
George Bush withdrew the US from the
The Internet was created as a tool to allow Kyoto Protocol, protest E-mails from envi-
university researchers to collaborate across geo- ronmental campaigners worldwide brought
graphical barriers. Its disregard for physical dis- down the White House Website.
tance has resulted in the formation of new com-
– Street protests, for example at the WTO
munities online. Some of the earliest online
meeting in Seattle, are often organised over
communities were formed as support and infor-
the Internet.
mation groups by mutual sufferers of illness
and their carers, as a complement to conventio-
5.3. Third order impacts
nal support structures. Other examples are the
and opportunities
anti-globalisation movement, the community of
Star Trek fans or the community of program- Isolating the aggregated effects of large scale
mers who form the Open Source movement. ICT use on society and social equity, from equi-
valent effects on the economy or the environ-
These online communities tend to bolster
ment, presents many challenges. Equally, so-
offline community rather than replace it. Geo-
ciety is effected by a vast range of other factors,
graphic communities are not being replaced by
and at this level it is artificial to separate these
“E-tribes” as was once thought possible.
from those of ICT use. However, there follow a
5. 2.7. Popular protest online number of opportunities for building social ca-
pital, to which widespread adoption of ICT has
In addition to enabling the formation of
contributed.
new, global communities, the Internet also gives
easy access to an unprecedented amount of in- 5. 3.1. Cultural homogeneity
formation about companies and governments. or cultural diversity?
This information can then be used in political
Despite the creation of software and inter-
campaigns online and offline.
faces that support languages with non-Roman
– One example of online action is the emerg- scripts such as Arabic and Japanese, the majori-
ence of spoof company Websites such as ty of information on the Internet is in English
mcspotlight.com and shameonnike.com. and originates from the US. ICT is accelerating
a trend which is a symptom of globalisation
more widely. However, the detrimental impact
on linguistic and cultural diversity is as yet un-
Part Two · E I T O 2002 The impact of ICT on sustainable development
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known. If English comes to dominate almost 5. 3. 3. Building civic culture
exclusively, the potential for non-English speak-
The Internet may offer a way of channelling
ers to be marginalised in the knowledge econ-
popular interest in political issues back into the
omy would be a serious concern.
formal political process. Online voting is one
Counter trends exist though. There are op- means. In the Kalix municipality in Sweden, the
portunities for new types of cultural diversity in local authority sought the opinions of local
cyberspace. What is more, the Internet can be residents via an online consultation prior to
used to bolster cultures and communities under drawing up plans for redeveloping the town
pressure. For example, Cornish is a language centre. 51
spoken by just a few thousand people world-
The Internet can allow citizens to engage di-
wide, but the online community of Cornish
rectly in the political process. Online inputs into
speakers has a daily global newspaper, in the
formal decision-making processes, online con-
form of Nowodhow Kernow. 50
sultations and online advocacy can increase par-
5. 3. 2. Building local communities ticipation. Similarly, ICT gives political parties a
means of reaching new audiences faster and
The widespread adoption of ICT into society
with fewer resources than with door-to-door
may make it possible to rebuild strong local
canvassing. Mass communications are essential
communities, where these have been eroded.
for building coalitions of support in an age
E-commerce and telework both may reduce car
when party affiliations are weak and swing
travel and provide an incentive for people to
voters make the difference. However, if ICT is
spend more time with their families and in their
to reinvigorate the democratic process, access
local geographical community. The incentive
itself must first be democratised.
will be enhanced if local amenities such as post
offices or corner shops act as E-commerce deli-
very points. Local businesses would also bene-
fit.
Research has shown that interaction over
the Internet actually encourages interaction off-
50 http://www.geocities.com/ line. If Web traffic can be directed into locali-
cornishnews/ ties, this could encourage local face-to-face in-
51 http://www.votia.com teraction and revitalise communities.
European Information Technology Observatory · E I T O 2002
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Table 7
First order effects Second order effects Third order effects Economic
Growth of the ICT market Application of ICT within ICT and the “new economy”: sustainability and ICT
businesses a new paradigm of growth?
– Size of sector and numbers – ICT creates opportunities for – Long-term and fundamental
employed new efficiencies in business changes to the global economy
may create a more beneficial
environment for the goals of
sustainable development
x
Figure 6
ICT growth rates in
Western Europe in % 52 20
18 2000/99 2002/01
16
14
12
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Figure 7
ICT expenditure
12 as a percentage
1998 2001 of GDP 54
10
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1999. Employment growth in OECD countries Figure 7 illustrates that the share of GDP
was on average 12 % in the ICT sector in the spent on ICT increased significantly since 1998
four-year period from 1995 to 1999. 55 Employ- in most countries.
ment growth exists not only in the first order
6. 2. 3. Ongoing investment in ICT
design, manufacture and disposal of ICT equip-
research and development
ment, but also in its application through ICT
service providers, software manufacturers and ICT companies and research institutions
more widely in economies as a whole through continue to plough large amounts of capital into
the stimulation of economic growth. their research and development budgets. In the
period 1990–1997 applications to the European
6. 2. 2. Ongoing investment in ICT
Patent Office for ICT patents increased by 8 %
The increasing importance of ICT in the per annum, compared with 5.7 % per annum for
economy is demonstrated by the continued all patents. 56 The ongoing development of new
heavy investment into ICT made by business, technologies has direct benefits for the compa- 54 EITO 2002, Table 88,
finance, government and every type of institu- nies responsible, but also has wider benefits for Statistical outlook
tion. ICT capability is regarded as an essential the economy and society as a whole. Studies 55 Groningen Growth and
prerequisite for operation in the modern econ- suggest that the social return of research and Development Centre,
http://www.eco.rug.nl/
omy and society. Continued investment into development is at least twice as big as the pri- ggdc/ictdatabase.html
ICT equipment drives the move to a more ICT vate return due to spillover benefits to other 56 OECD STI scoreboard
dependent economy, in which sustainable devel- firms. 57 57 Economist, 23 September
opment issues can better be addressed. 2000, p. 43
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Figure 8
Boom and bust
in the ICT sector –
Nasdaq Europe Composite Index
Nasdaq Europe 2,500
Composite Index 58
2,300
2,100
1,900
1,700
1,500
1,300
Value
1,100
900
700
500
300
100
1998 1999 2000 2001
Close price
276
Clearly there are a range of factors that have 6. 3. 2. New opportunities for SMEs
contributed to the boom and bust of technology
Larger companies have had access to global
stocks. In the context of sustainable devel-
markets and economies of scale for a long time
opment, it is worth asking whether the nature
but these opportunities are now becoming avail-
of ICT in the economy, requiring rapid develop-
able to smaller companies through the applica-
ment and deployment, encourages market vola-
tion of ICT.
tility.
– SMEs have access to new consumer markets
6.3. Second order impacts through the development of B2C E-tailing
and opportunities sites. B2B E-commerce provides greater ex-
posure to business with large organisations
6. 3.1. Application of ICT using E-procurement policies or whole mar-
within businesses kets where E-marketplaces operate. This can
ICT has had a profound effect on the effi- provide small companies with limited re-
ciency of internal business systems. To take one sources access to global markets at very low
example, ICT has had particularly beneficial ef- cost.
fects on businesses’ inventory management, – A more networked economy creates greater
with implications for economic stability. ICT economic diversity. SMEs are ideally placed
has increased the quality and speed of informa- to take advantage of developing market
tion that companies receive, for example niche products and services.
through bar-coding and real-time transmission – SMEs have hitherto lacked the ability to ex-
of sales data. Computer Aided Design has also ploit efficiencies through large scale produc-
meant that set-up and production lead times tion. However, ICT control systems are as
have been reduced. Companies are able to oper- applicable to small companies as they are to
ate with lower inventories and suppliers can large and can allow SMEs to compete on
produce more to demand, reducing risk and ul- price.
timately volatility. The inventories of durable
consumer goods for example fell relative to The boost to SMEs has the potential to
sales by approximately 20 % between 1988 and stimulate local economies and foster regional
2000. development, contributing to a more equitable
distribution of wealth and opportunities, a key
The application of Web-managed control element of a more sustainable society and
software can result in: economy.
– faster production lines and faster turnover;
6. 3. 3. Financial markets
– better logistics, cost and quality control;
The application of ICT has been closely
– more information and better communication
linked to the rapid expansion of the world’s
throughout a business;
financial markets in the past ten years.
– substantial elimination of waste.
– ICT is used to communicate the data on
The economic savings thus created also re- which the operation of financial markets is
present in many cases environmental savings. based. With the development of much faster
and more powerful ICT, financial markets
around the world have been able to grow
and develop links. Because these financial
Part Two · E I T O 2002 The impact of ICT on sustainable development
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markets deal exclusively in intangibles, there 6. 3.4. The relationship between
is no limit to the speed and volume of business and the market
financial transactions.
ICT has changed the way that business
– New financial sectors such as futures, deriv- connects to its markets in several ways. For ex-
atives or spread betting have been catalysed ample, ICT has stimulated the development of
by ICT as it enables highly complex mathe- new business models such as E-marketplaces
matical calculations and practically instanta- and has enabled individually-tailored marketing
neous transfer of data. strategies and product supply. Of particular
– ICT has opened up financial markets to importance for sustainable development, ICT
wider participation. Through online shares has provided the means for greater empower-
trading sites, financial information is dis- ment of consumers, and has gone some way to
seminated to a new global community of enabling greater corporate accountability.
individual shares traders.
i. Empowerment of consumers
The inclusion of large numbers of individu-
Increased product information online allows
al investors in the financial markets is at first
consumers to make informed purchasing deci-
glance a positive democratising development. It
sions more easily. The growing body of ethical
may however lead to an increase in market vol-
and green consumers is better placed online to
atility, as individual investors operate according
make well informed purchasing decisions. For
to different rules from those of corporate inves-
example, www.mtprog.com rates household ap-
tors and their vast electronic markets.
pliances based on environmental criteria. At the
The success of the financial markets gener- same time, E-commerce is better suited to
ates global wealth which can be channelled to niche markets as niche consumer groups are
address social and environmental issues. How- more easily targeted online than offline through
ever, it has been argued by some observers that expensive marketing campaigns.
the market is difficult to predict and regulate
ii. Corporate accountability
and creates patterns of wealth that are not glo-
bally inclusive. Corporate information is now more widely
accessible than ever before, over the Internet.
In the overwhelming majority of cases, in-
This enables consumers – indeed all stakehold-
vestment decisions are made taking only eco-
ers – to scrutinise companies’ social and envi-
nomic factors into consideration. If social and
ronmental records, and then take action if they
environmental performance of companies can
feel a company is operating unethically. For
be given a market value, the financial markets
example, the Internet was key to organising the
have great potential to contribute to sustainable
popular movement against use of child labour
development.
in supply chains.
Furthermore, it has been argued that econo-
mic relationships online, in an environment
where face-to-face contact is rare, place a great-
er emphasis on trust. If a company can be seen
as socially responsible, it is also seen as trust-
worthy, and so attracts business, investment and
new recruits.
European Information Technology Observatory · E I T O 2002
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In these ways, the increasing use of the In- Whether these changes constitute a “new
ternet has been one factor stimulating compa- economy”, a paradigm shift in the fundamentals
nies to develop strategies for Corporate Social of economics, or whether they are the culmina-
Responsibility (CSR). Many companies have tion of long-term trends, is a matter for de-
CSR departments and are committed to report- bate. 60 More importantly, the modern economy
ing on social and environmental as well as that is emerging, with ICT at its core, may be
economic performance. beneficial to the goals of sustainable develop-
ment.
“The Cluetrain Manifesto” examines how
the Internet has been central to the restructur- Central to this claim is the possibility that
ing of business. Its authors argue that the Inter- ICT contributes to generally higher rates of pro-
net has been responsible for changing the bal- ductivity growth. In the years 1972–1995, for ex-
ance of power between companies and consum- ample, productivity in the US economy grew by
ers, in favour of the latter. According to them, 1.4 % per annum. This figure increased to 2.5 %
the Internet makes new relationships possible, per annum between 1995 and 2000, at a time
“humanises the corporation, emphasises its in- when growth in ICT use was evident.
teractions with other stakeholders and so rein-
The IMF has identified this increase in US
forces its social and environmental responsi-
labour productivity with ICT-related capital
bilities”. 59
deepening and ICT-related efficiencies. 61 The
US Department of Commerce calculated that in
6.4. Third order impacts
1997 and 1998, when the US economy grew by
and opportunities
8 %, between 27 % and 28 % of that growth was
6.4.1. ICT and the “new economy”: attributable to the growth of ICT. Romano
a new paradigm of growth? Prodi, President of the European Commission,
said of US growth that it “leaves no doubt as to
Undoubtedly, today’s developed-world econ-
the potential benefits of the new economy in
omy has some different characteristics to that of
terms of growth, employment and low infla-
twenty years ago. For example, production of
tion”. 62 59 Rick Levine et al., “The
material goods has given way to a focus on serv- Cluetrain Manifesto: The
ices. Thus, the number of service industry jobs However, dissenting voices exist. A recent end of business as usual”,
2000
in France as a proportion of total employment report suggested that US growth in the period
60 See for example “Is there a
rose steadily over the past century, from approx- 1995–2000 was concentrated in just a few sec- new economy? First report
imately 25 % in 1900 to over 70 % in 1990. Glo- tors of the economy, and not across all sectors on the OECD growth
project”, OECD 2000
balisation is also a feature of the modern econ- as would have been expected had ICT been the
61 IMF, “The Information
omy, reflected in the increasing number and in- driving force for growth. 63 technology Revolution”,
fluence of multinational enterprises and global 2001 – see http://www.
Furthermore, similar patterns of productivi- imf.org/external/pubs/ft/
trade bodies. weo/2001/02/
ty growth have not as yet been replicated in
The increasing penetration of ICT has a very many other developed economies, such as Fin- 62 Conference report from
“The e-economy in
significant role to play in these changes to the land or Sweden where ICT use is as high or Europe: its potential
impact on EU enterprises
modern economy, enabling services to be de- higher than in the USA. Nor is there clear evi- and policies”, 2001
livered efficiently and providing the means to dence connecting ICT use and productivity 63 Financial Times,
bind the global economy together. growth in these countries. 17 October 2001
Part Two · E I T O 2002 The impact of ICT on sustainable development
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If ICT does indeed drive productivity 7. Evaluation
growth, the increasing penetration of ICT sys-
This paper has reviewed the impacts and op-
tems and applications across all aspects of
portunities of ICT on the three spheres of sus-
human endeavour may provide for greater pros-
tainability: environmental, social and economic.
perity and stability in the economy of the
In evaluating the overall picture, it is necessary
future. It may even be possible for economic
to draw these three spheres together and iden-
growth to finally be de-coupled from growth in
tify where the balance of positive and negative
consumption and resource use, as explored ear-
effects lies.
lier, 64 creating a context in which the goals of
sustainable development can more easily be Figure 9 summarises the balance of positive
achieved. and negative impacts and opportunities of ICT
on sustainable development, as presented in
6.4. 2. Exclusion or inclusion?
this chapter.
There are signs that the embedding of ICT
in the new economy does not in itself address 7.1. First order impacts
differences between the rich and poor. The and opportunities
richest 20 % of the world’s population still ac-
The impetus for the development of ICT
counts for 86 % of GNP, 74 % of telephone lines
has been primarily economic, and so the imme-
and 93 % of the world’s usage of the Internet.
diate effects of ICT on economic sustainability
Some economists argue that the global are expected to be positive (c in Figure 9). This
economy, driven by the financial markets, seeks is the case, despite the current depressed state
value and bypasses areas where little profit can of the ICT sector. Indeed, it has been argued
be made, creating a substantial minority of that the bubble that burst in 2000 was a finan-
economically excluded people living in devel- cial bubble and not a technology bubble: tech-
oping countries and parts of developed coun- nology stocks were overvalued, but confidence
tries alike. in the technology itself remains strong.
It has been shown that uneven distribution The immediate effects on the environment
of ICT around the world leads to the creation of are quite the opposite (a in Figure 9). Production
a digital divide. However, the rapid develop- of ICT equipment does not place the same level
ment of ICT may present the opportunity for of demands on natural resources, nor is it as
countries currently with poor ICT infrastructure polluting, as many other industries, but none-
to “leapfrog” old economy solutions and pro- theless the manufacture, operation and disposal
ceed directly to those of the new economy. For of ICT equipment all have negative environ-
example, Rwanda is looking to roll out a mobile mental impacts. Although efforts are being
telecommunications network without ever hav- made to mitigate these effects from within the
ing invested significantly in fixed line. Similarly, ICT industry, action is also required at a policy
emerging markets in the east of Europe such as level:
Poland will soon have a much higher penetra-
tion of mobile phones than of fixed-line
phones. There are also many attempts to use
fixed-line Internet access in developing and
emerging economies to distribute economic
64 See section 4.3. benefits more evenly.
European Information Technology Observatory · E I T O 2002
280
Figure 9
Evaluating the effects
First order Second order Third order of ICT on sustainable
development
Convergence
Mostly positive As yet
unknown
n
Social Positive and negative n n
e
n
g
b
Mostly positive
More positive than
negative
Economic c n
f
x
ICT co-ordinated financial markets may cre- 7.3. Third order impacts
ate market volatility and exacerbate exclusion, and opportunities
but this may be changing with investors and
The aggregated effects of widespread use of
fund managers beginning to respond to con-
ICT throughout the economy and society are as
sumer concerns. Indeed, the markets may be-
yet ambiguous (g in Figure 9). Long-term envi-
come a powerful force for sustainable devel-
ronmental effects are dependent on the type of
opment in the future by directing increasing
economy that results from ICT penetration. A
volumes of capital into companies that can
“lightweight” economy where intangible goods
demonstrate a commitment to ethical issues
are valued above material production, where
and a practical approach to social and environ-
economic growth is de-coupled from growth in
mental risk management.
energy consumption and pollution, may be
Telematics is a promising technology for re- emerging. This is the type of economy that
ducing traffic levels (d in Figure 9). ICT stream- would benefit the aims of sustainable develop-
lines business systems, increasing efficiency and ment, but it is far from clear whether the econ-
therefore decreasing the environmental foot- omy of Europe is developing in this direction.
print of business. E-commerce and telework
Similarly, it remains to be seen whether ICT
may or may not cause a decrease in the use of
penetration produces cultural homogeneity or
transport and a consequent decrease in vehicle
diversity, whether social equity will be boosted
emissions, depending on how consumer habits
or communities eroded. The third order effects
are effected and how support systems are struc-
on society, as with the economy and the envi-
tured. Many of the effects of ICT application on
ronment, will be unveiled in the long term.
the environment remain in the balance, and it is
Even then, directly attributing macro-level
here that policy initiatives are perhaps most
economic social and environmental develop-
needed to ensure that they are swung in the
ments to the increasing use of ICT, rather than
right direction for sustainability.
to other trends such as the rise of the service
ICT applications, in particular the Internet, economy or changes in cultural attitudes, will
provide access to information and services and be extremely complex.
create the possibility for greater community in-
volvement for hitherto excluded groups (e in 7.4. Summary
Figure 9). Workers may benefit from an im-
The past twenty years or so have seen ICT
proved work-life balance. The Internet may
become ever more central to the world’s econ-
have a generally humanising effect on people’s
omy and culture. This technological revolution
lives. However, the social benefits of ICT at this
is of great significance for several reasons:
level are dependent on universal connectivity,
widespread “IT literacy” and the relevant con- – The speed with which ICT has penetrated
tent being developed to serve communities and society is unprecedented by any other tech-
individuals. There is a very significant role for nology.
policy makers to play in creating such an envi- – ICT has an enormous range of applications
ronment. and can be profoundly enabling.
– The creation of ICT requires less resource
than the creation of many other enabling
technologies, such as the internal combus-
tion engine, and has very low marginal
costs.
European Information Technology Observatory · E I T O 2002
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In some cases ICT is of direct benefit to the Although the deployment of ICT through
goals of sustainable development; in others ICT the economy and society is still at an early
is directly or indirectly detrimental to social and stage, now is the right time for concerted policy
environmental concerns. In most cases, how- action. In this way, it may be possible to intro-
ever, the effects will only become clear in the duce sustainability into the ICT sector from the
medium-to-long term. outset, rather than having to retro-fit social and
environmental concerns in response to stake-
The goals of sustainable development are to
holder pressure.
enable all people to realise their potential and
improve their quality of life in ways that simul- Three broad principles should govern any
taneously protect and enhance the Earth’s life- attempts to maximise the synergies between
support systems. As these goals become sustainable development and ICT:
increasingly accepted, more and more facets of – Institutional innovation must be as radical
human activity will be analysed in terms of their as technological innovation in order to keep
effects on sustainable development. up with the pace of change.
In the case of ICT, examples of this process – Business, government and non-govern-
taking place have already been observed. How- mental organisations (NGOs) must work in
ever, this section has shown that despite all the partnership for action to be effective.
potential, there is no overwhelming dynamic in – Successful policy will depend on a longer
the penetration of ICT that automatically pro- term view, beyond the ups and downs of
pels the globe towards a sustainable state. ICT stocks prices.
Rather, ICT presents an array of opportunities
to be taken: ICT is a tool that can be used to 8.1. A selection of policy options
steer society in a beneficial direction.
There is a range of policy tools available to
The possibilities of ICT should perhaps be government and business in attempting to in-
seen as a challenge for those who wish to im- fluence the development of ICTs and their im-
prove the quality of life for all. The response of pacts. Maximising the potential of ICTs to pro-
policy makers in government, business and in mote sustainable development will depend on
civil society is therefore crucial. how these policy tools are implemented and the
degree of co-ordination between different levels
8. Policies and targets of government, business and other policy actors
The evaluation of the economic, environ- such as NGOs.
mental and social impacts of ICT highlights a Table 8 sets out a selection of policy tools
series of critical junctures at which action on which could be used, together with a brief ex-
the part of business and government is neces- planation of how each tool functions and an
sary if some of the more negative impacts of indication of where each can be most effective.
ICT are to be avoided and the positive opportu- In addition, it offers specific examples for each
nities are to be exploited fully. Current trends policy tool within the framework of ICTs and
indicate that there is no room for complacency sustainable development.
about the inevitability of positive outcomes.
Part Two · E I T O 2002 The impact of ICT on sustainable development
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Table 8
x
Policy options
Market-based Market-based policies, Market-based policies may Tax exemptions could be offered to employers
policies such as fiscal instruments, create incentives to reduce purchasing computers for use by employees at
offer a way of promoting negative first and second order home. This would promote digital inclusion as
social and environmental environmental and social well as creating opportunities for home working
concerns by reallocating impacts, whilst promoting a to reduce commuting and office space.
the burden of taxation. dynamic, competitive ICT Increased taxation on high-emission fuels could
At the same time, they sector in Europe. shift usage towards renewables and stimulate
promote innovation and innovation in new fuel technologies. This could
stimulate new markets. reduce the home delivery impacts of E-commerce.
Regulation Public authorities mandate Regulation can reduce negative The EU draft directive on universal access could
the social and environ- first order environmental and be extended to broadband by 2015 to promote
mental standards to be social impacts. However, regu- digital inclusion.
achieved, or the technolo- lation offers less flexibility Member State governments could increase fines
gies to be used, by firms. than market-based incentives for heavy-metal contamination in order to en-
and so market-based incentives courage industry to replace toxic substances in
should be favoured where production.
possible.
Voluntary Firms make a commitment Voluntary initiatives could ICT companies could commit to exceeding the
industry to improve their perfor- reduce first, second and third requirements of the WEEE directive for recycling
initiatives mance beyond strict legal order impacts. However, the electronic waste in order to reduce the first order
stipulations. This is com- overall environmental and environmental impacts of ICT equipment.
monly referred to as social impact depends on The ICT industry could put forward overall
corporate social responsi- industry-wide buy-in. targets for “factor four” efficiency gains as part of
bility. an industry-wide strategy for reducing its environ-
mental impact.
Monitoring and Firms commit to transpar- Over time, benchmarking may ICT companies could commit to triple bottom
reporting ency and accountability in promote sustainable develop- line reporting under the Global Reporting Initia-
their activities. This allows ment across first, second and tive.The ICT industry could co-operate with
benchmarking across in- third orders. NGOs and policymakers to develop sector-specific
dustry, which can improve guidelines for triple bottom line reporting.
long-term performance.
Government- Information and financial Government-supported initia- Government could finance and support social
supported support is offered by tives could improve knowledge partnerships to tackle the digital divide.
initiatives different public authorities on sustainability issues among Local and regional governments could provide
to promote sustainable business and create incentives financial support for online local communities,
development. for improved environmental particularly in rural and disadvantaged commu-
and social performance at the nities.
first and second orders.