A recent study by Greenly, a Paris-based carbon accounting consultancy firm, has revealed that TikTok’s annual carbon footprint may be larger than that of Greece. The study estimates TikTok’s 2023 emissions in the US, UK, and France alone at 7.6 million metric tonnes of CO2e, surpassing platforms like Twitter/X and Snapchat.

This significant environmental impact is attributed to the platform’s massive user base and the energy-intensive data centers required to support its operations. TikTok’s short-form video format, with its emphasis on high-quality visuals and rapid content consumption, further exacerbates this issue.

The study highlights the growing concern around the environmental cost of social media, particularly as platforms like TikTok continue to gain popularity.

We asked Danny Woolf, founder of Danesmead ESG, for her thoughts on this and she explained: “This is a great example of something we call ‘hidden ESG risks.’ Quite often investors and consumers look at surface level factors – for example, Is this an energy company? No? Then it’s OK environmentally. But quite often sustainability issues aren’t surface level, they run deeper: in the operational processes, value chains and supply chains of a business. And they’re often worth looking into.”

While TikTok has not yet responded to the study’s findings, the company has previously stated its commitment to sustainability with a commitment to be carbon neutral by 2030 in its “Project Clover” plan. TikTok’s “Project Clover” is a comprehensive data security initiative aimed at addressing concerns about the safety and use of data.

However, it remains to be seen if TikTok will address these concerns, especially if ByteDance is bought by a US company. SEC rules passed earlier this year require large businesses to report gas emissions, though it is thought Trump may reverse this.

Finfluencers: fuelling consumption not sustainability

Another concerning aspect of TikTok’s environmental and social impact is the role of “finfluencers” – social media influencers who provide financial advice and promote investment products. While some finfluencers promote sustainable investment strategies, many others encourage speculative trading and consumption-driven lifestyles, often contributing to environmental degradation.

Dame Meg Hillier, UK Treasury select committee chair, has expressed concerns about the potential for finfluencers to mislead investors and contribute to consumer financial harm. She has called for finfluencers who promote investment schemes or provide online financial advice for an evidence session so that MPs can better understand how they operate.

UK regulator – the FCA has been trying to crack down finfluencers, in October it said it was interviewing “20 finfluencers under caution”, as it launched targeted action against those who may be touting financial services products illegally.

According to a press release, the regulator also issued 38 alerts against social media accounts operated by finfluencers which may contain unlawful promotions.

Earlier in the year, the FCA brought charges against nine finfluencers for promoting foreign exchange trading schemes on social media without authorization. Seven will face trial in 2027.