Image Source: the Ellen MacArthur Foundation
In today’s rapidly evolving technological landscape, IT asset disposition (ITAD) is becoming increasingly significant. Companies must navigate the complexities of disposing of outdated IT assets while balancing their environmental and social responsibilities. However, this challenge presents an opportunity to adopt practices that align with the principles of a circular economy, which prioritizes sustainability and resource efficiency, all while putting cash value back into your IT budget.
Let’s look at how we can accomplish that!
The Circular Economy Paradigm
A circular economy emphasizes processes that maximize the value of resources by keeping them in use for as long as possible. Unlike the traditional linear economy, which follows a take-make-use-dispose model, a circular one seeks to eliminate waste through many different avenues. It can involve superior design to keep products in use longer, the refurbishment and resale of products that have otherwise reached the end of their useful lifecycle, and, as a last resort, the recycling of the component materials to go back into the manufacture of new products. The ultimate goal of a circular economy is to completely eliminate the disposal part of the current linear economic paradigm while minimizing recycling, which still consumes energy and resources to manufacture new goods.
The Growing Problem of E-Waste
E-waste is one of the fastest-growing waste streams globally. In 2022, the world generated 62 million metric tons (Mt) of e-waste, up nearly 16% from 2019, and this number is projected to reach 82 Mt by 2030.
In 2022, only 22.3% was formally recycled. The good news is that it is up from just 17% in 2019. So, while we still have a long way to go, we are headed in the right direction. Unfortunately, the other roughly 80% of e-waste is still going to landfills, which are increasingly being banned in the USA, or informal recycling centers, both of which cause significant environmental and health hazards. Therefore, anything we can do to minimize e-waste helps reduce these hazards while promoting a more sustainable society.
The Importance of a Mature ITAD Process
Proper IT asset disposition in a circular economy involves more than just not landfilling old electronics. It encompasses several critical steps:
- Data Wiping: Ensuring all sensitive data is securely erased from devices to protect your company from data breaches while also helping to ensure that they can be safely refurbished and resold.
- Evaluating and Grading: Assessing the condition and functionality of IT assets to ensure efficient re-use.
- Refurbishing and Reusing: Giving new life to old equipment through repairs and upgrades so that it can be resold.
- Ethical Recycling: Ensuring that non-reusable assets are recycled only as a last resort. When recycling becomes necessary, it is done in an environmentally responsible manner, following e-stewards or R2 responsible recycling standards, ensuring that nothing ends up incinerated or landfilled or sent overseas to informal recycling centers lacking adequate environmental and safety protocols.
Advancing the Circular Economy Through ITAD
Adopting responsible ITAD practices can help companies transition their technology use from a traditional linear economy to a sustainable circular one. This has positive environmental and social outcomes, but can also create positive financial outcomes for your company at the same time. Here’s how:
- Maximizing Asset Lifespan: By refurbishing IT assets, companies can significantly extend the life of their equipment, even if it is not their own company. This reduces the need for new manufacturing and its associated carbon emissions. It also promotes good social outcomes by putting tech in the hands of those who otherwise might not be able to afford it.
- Reducing E-Waste: Keeping assets in use longer prevents them from entering the waste stream prematurely, alleviating the burden on recycling centers and landfills. In a truly circular model, there is no landfilling of e-waste.
- Enhancing Brand Reputation: Companies that prioritize sustainable ITAD practices can position themselves as leaders in environmental stewardship, attracting environmentally conscious customers and partners.
- Recovering Value: Properly managed ITAD can turn a potential cost burden into a profit center by selling reusable assets and putting money back into your IT budget.
The Path Forward
To fully embrace the circular economy, companies must integrate ITAD into their broader sustainability strategies. This involves:
- Setting Clear Policies: Developing comprehensive ITAD policies that prioritize reuse and ethical recycling.
- Educating Employees: Training staff on the importance of maintaining assets so that they can be reused at the end of their useful lifecycle in your company.
- Choosing the Right Partners: Collaborating with certified ITAD providers who align with your company’s sustainability goals.
ICT: Mission Reuse
ICT’s Mission Reuse is ahead of the game when it comes to advancing a circular economy. At their core, they advocate for reuse and repurposing as the superior method of asset disposal, prioritizing data security, zero waste, and environmental compliance. Their philosophy emphasizes the environmental sustainability of reducing resource-intensive processes like bulk shredding and smelting, contributing to a cleaner future. By embracing reuse, this makes technology accessible to others, creating opportunities for them to overcome financial constraints. This approach also maximizes residual asset value, boosting IT budgets by extracting sometimes significant cash value from retired assets.
Case Study: We collaborated with a medical services company to securely dispose of 62 assets, including data wiping and resetting equipment to the manufacturer's default. Our solution ensured 95% of the equipment was reused and 5% was recycled, contributing to a circular economy while the value of the equipment compensated the cost of the services. Let us help your organization dispose of e-waste efficiently and sustainably.
Final Thoughts
Incorporating proper ITAD practices is not just about mitigating risks and complying with regulations. It’s about seizing an opportunity to contribute to a more sustainable future. By embracing the principles of the circular economy, companies can reduce their environmental impact, enhance their social responsibility, and create long-term value for their stakeholders. Reuse over recycling is a powerful strategy in this endeavor, ensuring that IT assets are kept in use for as long as possible, benefiting both the planet and a company’s bottom line.
Find Out How We Can Help
If you are an enterprise, government, or institution looking for responsible and profitable ITAD solutions or want a copy of our white paper ITAD in Today’s Circular Economy exploring this concept in depth, please contact us at ICT.
Selected References
ERCC. (n.d). Map of States With [E-waste] Legislation. Www.ecycleclearinghouse.org. https://www.ecycleclearinghouse.org/contentpage.aspx?pageid=10#:~:text=There are currently 25 states
Maker Movement via Research Gate: Image of Linear vs Circular Economy
SERI - Sustainable Electronics Recycling International. (2013). Sustainableelectronics.org. https://sustainableelectronics.org/
UNITAR. (2024). Global e-Waste Monitor 2024: Electronic Waste Rising Five Times Faster than Documented E-waste Recycling. https://unitar.org/about/news-stories/press/global-e-waste-monitor-2024-electronic-waste-rising-five-times-faster-documented-e-waste-recycling
ICT. (2024). ITAD in Today’s Circular Economy White Paper. https://itad.ai/mission-reuse
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