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IT’s role in moving the organisation towards a circular economy

March 6, 2024
in Business
IT’s role in moving the organisation towards a circular economy
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The concept of the circular economy has gained significant attention in recent years as the world continues to grapple with environmental issues. 

We currently exist in what’s known as a linear economy, where finite resources are extracted to make products that are used and then thrown away. In contrast, the circular economy is a system based on the regeneration of materials or products, especially as a means of continuing production in a sustainable or environmentally friendly way. 

According to the Ellen MacArthur Foundation, a leading voice in the circular community, the circular economy can contribute towards tackling the 45% of global greenhouse gas emissions that cannot be resolved by transitioning to renewable energy alone. 

This shift to a circular economy is being driven not only by consumers making ethically-driven purchasing decisions but also because organisations are facing increasing pressure from governments to reach sustainability milestones.  

IT is playing an increasingly important role in helping organisations to reach these goals. As businesses incorporate circular economy principles into their IT procurement processes, CIOs are being called upon to minimise the environmental impact of their existing and new infrastructure and to ensure that sustainable technology is deployed aggressively. 

According to analyst house IDC, environmental, social, and corporate governance (ESG) performance will be viewed as a top three decision factor for IT equipment purchases by 2026. IDC also expects that this increasing attention to the importance of sustainability will increase demand for used IT equipment.[1] 

The role of CIOs in achieving circularity 

Accountability is key for IT teams looking to improve their equipment usage metrics and reduce the amount of e-waste generated by their organisation.  

A circular economy strategy must include visibility across the entire product lifecycle, from product lifecycle management to supply chain sourcing and beyond. 

For example, IT teams must consider the whole life cycle of a product or service – from the extraction of raw materials to manufacturing, distribution, use, and disposal. This allows organisations to better understand the environmental costs associated with their technology stack, highlighting areas in a product’s lifecycle that are particularly resource intensive or polluting. 

Lifecycle management can also help businesses reduce the amount of e-waste they generate by encouraging more responsible disposal at end of life. Organisations should place emphasis on repair, refurbishment, and remanufacturing, while ensuring they are buying new technology from a manufacturer whose sustainability goals align with their own when it comes to how products are designed, manufactured, used and recovered.  

Not only can this approach bring organisations closer to sustainability targets, but IDC research shows that incorporating circularity can help to improve brand reputation by 45% and to improve both operational efficiency and costs by 50%.[2] 

To ensure they are on track, IT teams helping their organisation to embark on a journey to circularity also need to ensure the success of the transition and must ensure they are equipped with the tools necessary for measuring, monitoring and communicating their progress.  

These tools can help companies to track their efforts against sustainability goals, achieve visibility into end-to-end processes, and manage their compliance with government sustainability regulations.  

HP, which as a company is driving towards a circular economy, can help organisations keep on top of their sustainability goals. The company now uses 100% renewable electricity to power the final assembly of over 95% of its PC and display products worldwide. While HP’s Device Recovery Service ensures end-of-use devices are securely collected, sanitised, and restored or responsibly recycled. 

Learn more about HP Sustainable Impact. To find out how HP’s Managed Print Services provides certified carbon neutral printing click here.  

[1] Source:  IDC FutureScape: Worldwide Sustainability/ESG 2023 Predictions, Doc #US48709922, Oct 2022 

[2] Source: IDC, The Circular Economy: Why IT Vendors Need to Pay Attention, Doc #DR2023_LL4_SM, March 2023 

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : CIO – https://www.cio.com/article/1311964/its-role-in-moving-the-organisation-towards-a-circular-economy.html

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