The development of digital literacy and digital competencies are widely recognised as essential in an increasingly digitised world. However, as we begin to come to terms with the extent of the climate crisis facing the world, this paper asks the question: is it time for digital literacy to focus its attention on the impact digital activity has on the environment? This desk-based research piece begins by examining popular digital tools and services used for entertainment and work purposes, and highlights their environmental impact and potential mitigating factors. Following this, definitions of digital literacy are examined to reveal a complex set of competencies which, as yet do not engage with the environmental impact of activity. The paper then examines widely used digital literacy frameworks and exposes their relative lack of engagement with this area. Finally, the paper urges that we begin to discuss environmental impact as a component of digital literacy. It proposes ways to achieve this with students, using the language of existing digital literacy definitions. It also recommends the inclusion of environmental impact as a separate strand in digital literacy frameworks.