Every year, public authorities in the EU spend around €2 trillion on the purchase of services, works and supplies. IT products, a category connected to a number of sustainability issues, are a significant part of this amount. A record 62 million tonnes of e-waste was produced in 2022, up 82 percent from 2010. Much of this ends up in landfill, causing pollution, risks to human health, and the loss of valuable finite resources.
E-waste is growing rapidly, and the amount is estimated to increase to 82 million tons by 2030 unless the trend is reversed. There are several reasons for the increase. The world’s population is growing, and economic prosperity reaches more people. Technological development is fast-paced, repair options are limited, and the price of IT products is dropping, leading to shorter product lifespans.
The Power Of Procurement
IT products come with many sustainability risks, which mostly happen in the supply chain and so are hidden from a purchaser’s view. But the purchasing power of procurement is great. Its ability to drive various industries in a sustainable direction should not be underestimated because buyers can directly influence brands toward continued improvements.
To be able to use IT products in a circular manner, you need to set the right criteria at the procurement stage. When procurement includes comprehensive, challenging environmental and social sustainability KPIs in its IT solution procurement criteria – and gives them enough weight – there is a clear message to IT manufacturers, driving them in a more sustainable direction. When purchasers will only buy products that are verified to meet a comprehensive set of sustainability criteria designed to promote a circular approach to the way IT products are manufactured and used, they are helping their organization reduce its climate footprint, e-waste levels and resource consumption.
Sustainable IT procurement can be used as a strategic tool for driving the development of more circular, sustainable products and business models. This makes procurement a vital part of organizations’ sustainability and ESG programs, putting them at the heart of driving positive change for the business.
Steps Towards Circular It
We hear about the need to drive circularity everywhere, from policy debates to corporate reports and also increasingly in the procurement practices of many organizations, but so far, we don’t see much of it imple- mented in practice. Implementing circular IT practices reduces climate impact, e-waste levels and resource consumption. It can also save significant costs. When it comes to electronics, it is often hard to know where to start. Here are five tips to get you going:
STEP 1: CHOOSE A SUPPLIER WITH SUSTAINABILITY AMBITIONS
Make use of dialogs, meetings and RFIs to gather information. Clarify ambitions and needs within sustainability and circularity. Specify the sustainability data you want to get access to. As mandatory sustainability reporting becomes more common, organizations are increasingly dependent on credible sustainability data from their suppliers.
STEP 2: INCLUDE CIRCULAR CRITERIA IN PROCUREMENT POLICIES AND SPECIFICATIONS
To enable circular IT management, products must be designed and made for a long life. Products must be repairable and upgradeable to function for a long time. Materials and components should be possible to recover. To fit into the circular economy, products must be of good quality and function for a long time without breaking. Ask for an extensive warranty that covers service, repairs and battery replacements for your estimated lifetime.
Products with ecolabels or sustainability certifications can help ease the transition with driving circularity criteria and independent verification of compliance.
STEP 3: BUY PRODUCTS WITH ENOUGH CAPACITY TO MEET YOUR NEEDS FOR A LONG TIME
Think long-term when you purchase an IT product. Buy a high-performance product with enough capacity to meet your needs for several years. Replacing traditional software with cloud-based solutions can also reduce the need for performance and enable a longer lifespan. Higher performance often means that the product uses more energy, but this is negligible compared to the climate impact that stems from the manufacturing phase. Purchasing a high-performing product may be more expensive initially, but it could pay off in the long term.
Once again, ecolabels and sustainability certifications can help ease the transition.
STEP 4: BUY AND SELL USED PRODUCTS
From a circular perspective, maximizing product life is critical. When the product no longer meets the needs of the first user, it should be redistributed or sold to a second user. Second-hand purchases generally reduce both costs and sustainability impact.
STEP 5: SET UP KPIS
Identifying the right KPIs can help you meet legal requirements on sustainability reporting and take steps toward meeting internal or external circularity goals. For IT, a prolonged use time leads to lower annual scope 3 emissions.
SWITCH TO IT PRODUCTS WITH A SUSTAINABILITY CERTIFICATION
IT products that are verified to meet a comprehensive set of sustainability criteria are designed to promote a circular approach in the way these products are manufactured and used. To enable a long lifespan, these products must be durable and upgradeable as well as possible to repair and recycle.
To look at it another way, if all notebook computers – certified according to TCO Certified – that were manufactured in 2023 were used for six years instead of three, it would result in a reduction of greenhouse gas emissions of approximately 1,257,000 metric tons per year. Even one more year would make a big difference, with annual reductions of 627,000 metric tons.
