Digital technologies, however, are not just driving economic growth, but also transforming society. The pandemic has led to rapid adoption of technology, bringing about 100 million users online, with 90% being mobile-native, accessing the internet primarily through their smartphones. This rapid adoption has led to profound shifts in consumer behaviors, with mobile internet and digital payments becoming increasingly “sticky.” A 2021 report by the Tech for Good Institute found that one in two consumers surveyed had adopted mobile internet and digital payments. Google’s 2023 report noted that e-payments now account for more than 50% of SEA’s transactions.

This digital embrace is not limited to how we transact, but extends to how we interact with technology. Voice search and voice commands are on the rise, with one in two Indonesians using voice interfaces monthly. SEA is now mobile-native, cloud-native, and AI-native. These users, our clients, employees, and supporters, have leapfrogged traditional technologies, setting new needs and expectations. Digital technologies, like cloud, 5G, data analytics, and IoT, are foundational enablers of both economic growth and sustainable development. However, most countries’ current digital roadmaps are not integrated with their sustainability goals. While some focus on inclusivity and access, they often lack alignment with net-zero objectives. Key areas of convergence include data infrastructure, clean energy, and supply chains.

Sustainable Digitalisation vs. Digital Sustainability

To better integrate sustainability with digital transformation, it’s important to distinguish between sustainable digitalisation and digital sustainability.

Sustainable digitalisation refers to minimising the social and environmental impact of developing, deploying, and disposing of digital technologies. In 2023, the Tech for Good Institute analysed the role of Digital Economy Companies (DECs) in SEA, finding that many are still focused on near-term operational issues, like cybersecurity and data protection, rather than environmental concerns. Given that the ICT sector accounts for 3-4% of global GHG emissions, with data centers alone contributing nearly half of this footprint, it is crucial for DECs to consider their environmental impact. It has been estimated that the computing power required for AI is doubling every 100 days and is projected to increase by more than a million times over the next 5 years. Many large tech firms with significant AI investments, for example, reported their increased carbon emissions since the beginning of this decade. For example, a single query to ChatGPT uses as much electricity as keeping a lightbulb on for 20 minutes. This ratio of economic benefit to carbon emissions may play a significant role in the future of the digital economy.

Digital sustainability refers to the enablement of digital technologies to support and drive sustainable development goals, especially in the context of achieving key transitions, such as moving towards a low-carbon and circular economy. The pandemic demonstrated the power of digital transformation in areas beyond economic growth, including public health and education. Despite its energy intensity, AI has the potential to advance the UN’s Sustainable Development Goals (SDGs), supporting 93% of environmental targets, 70% of economic targets, and 82% of social targets.

How Digital Sustainability Can Accelerate Progress Towards Development Goals:

1. We need digital technologies to do what we do better. We need data for goal setting, reporting and evaluation on shared metrics for collective impact.

2. We need digital technologies to do things differently, gaining efficiencies and improving access. Telemedicine, for example, has empowered community health workers and connected rural communities to medical expertise most often found in urban centres.

3. We need technology to create whole new markets. For example, carbon markets rely on trusted and verifiable data. Light detection and ranging (LiDAR) sensors can monitor forests digitally for carbon stock monitoring, estimates on carbon yield and generation of carbon credits.

The momentum for both sustainable digitalisation and digital sustainability can be sustained through national-level policy and investment.  A prime example of policy-driven progress is Singapore’s Green Data Centre Roadmap, which was developed to promote the sustainable growth of data centres (DCs) that are vital to its digital economy.  Similarly, impact investing, blended finance, and public-private-philanthropic partnerships are critical for advancing digital sustainability. Regional coordination in  investment and digital interoperability will not only foster national growth, but also broader regional development.

About the writer

Dr Ming Tan is the founding Executive Director at Tech for Good Institute, a non-profit organisation seed-funded by Grab to catalyse research and collaboration on social, economic, and policy trends accelerated by the digital economy. She is concurrently a Senior Fellow at the Centre for Governance and Sustainability at the National University of Singapore. Her interests lie at the intersection of technology, business and society, including sustainability and innovation.