Ctg sit23 hub banner.jpg

Can IT consumption become more sustainable?

The circular economy involves recycling existing materials and products for as long as possible

Image:

The circular economy involves recycling existing materials and products for as long as possible

Businesses face increasing pressure to be sustainable and environmentally conscious - and it all begins at procurement.

UK business leaders face a triple-headed challenge. As well as dealing with a difficult economy, and environmental pressure from regulators and customers to be more sustainable, they have to take a cost-conscious approach and stay ahead of their competitors.

But how can IT be made more sustainable in the face of rapid technological change? Digital transformation, which typically involves vast swathes of new IT kit, is crucial to business success, with analyst Gartner saying global IT spending will total $4.4 trillion in 2022, an increase of 4% on 2021.

However, kit refreshes also create environmental strain - an increasingly important subject. Consultant Capgemini has found that 79% of consumers are changing their purchase preferences based on social responsibility, inclusiveness or environmental impact.

For decision makers in IT, sustainability and procurement, the premise is clear: give the business the hardware it needs to succeed, but do so in a way that's cost effective and environmentally sustainable. That mix sounds tough to achieve but by building strong partnerships, you can manage technology asset rollouts effectively and balance responsibility for sustainability, cost control and competitiveness.

So where should companies start if they want to bring about change? As in almost all other sectors, sustainability begins at the procurement stage. Up to 80% of companies' CO₂ emissions are generated from procurement and supply chains. This is particularly true in IT, as manufacturing digital devices generates far more greenhouse gases than using them.

Becoming part of the circular economy

Business leaders aiming to maintain productivity in a sustainable manner must do two things: they must focus on managing the total cost of ownership (TCO) of technology used in the business and pass on old kit sustainably as part of the circular economy, which involves recycling existing materials and products for as long as possible.

The key to success is helping your organisation embrace this dual responsibility head-on. No executive can meet this target by working in isolation. They must find effective techniques to manage IT assets' TCO and to deal with these resources in an environmentally sensitive manner.

The shift in thinking comes from looking at the entire lifecycle of IT refreshes from procurement and use, to data deletion, refurbishing and remarketing. The circular economy approach is a proven financially and environmentally sensible way to do business.

By only procuring and financing the equipment it needs, a business can ensure efficiency and conserve resources. And through using financing models, rather than tying up an organisation's capital, these lifecycle models provide cash flow for investment in further innovation. At the end of the lifecycle the equipment is handed back to the provider, who wipes it and reuses it. The TCO is thus lower for organisations and the equipment you buy can be put to sustainable use afterwards.

In other words, sustainable business practices and financing models pay off, both for business and for society. The circular economy is acting as a catalyst here, establishing itself as one of the most popular contemporary business principles across all industry sectors. While this was originally driven by the huge cost of IT equipment, it is now consistent with contemporary thinking where use is valued above ownership.

Reduce, Reuse, Recycle

There are three guiding principles in the circular economy to create greater sustainability in IT:

Reduce: Keep new purchases to a minimum by opting for durable products with robust manufacturer support and resale value.
Reuse: Send decommissioned IT equipment for professional refurbishing and eco-friendly remarketing as soon as possible.
Recycle: Ensure that any assets that can no longer be used are sustainably and professionally recycled and the raw materials are returned to the production process.

Currently, only half of old equipment is collected and less than 20% is recycled. This is where remarketing equipment really stands out as a best course of action. Reliable data deletion is paramount to the success of the circular economy. Smartphones and laptops, but also PCs, servers and even printers store large amounts of data, which is why professional data erasure in accordance with statutory requirements is essential for remarketing. Organisations should look to suppliers that can provide ISO-certified data deletion solutions adapted to the type of device, to the data scenario, and to the company's individual security requirements. This guarantees data does not fall into the hands of unauthorised parties.

As a result, the useful life of laptops, tablets, and smartphones is increasing, and currently 96% of all IT assets returned to us at CHG-MERIDIAN are refurbished and given a second or even third life. In 2020 alone, we refurbished almost a million IT devices that were remarketed to companies and customers on the secondary market. Each device that is remarketed contributes to greater sustainability by saving the energy, raw materials, and greenhouse gas emissions otherwise used or generated in the manufacture of a new device.

Conclusion: Sustainable growth now

UK organisations must find a way to deliver sustainable growth while keeping costs in check. It's a tough combination to satisfy, but it's possible and an action we all should take.

Image