Sweden is often seen as a role model on climate issues, but when it comes to reusing and recycling materials and products, we are lagging behind as only 3.4% of our Swedish economy is circular, compared to the global average of 8.6%. To drive the circular transition, directives at both EU and national level will increase the demands on businesses.
IT is now a mainstay of the Swedish economy, but this also poses challenges. Electronic waste is currently the fastest growing waste stream in the world. The IT sector accounts for about 4% of global emissions, and this is a figure that is expected to rise as digitalisation increases. At the same time, the IT sector is seen as an enabler to reduce the climate impact of other sectors. Most of the emissions, around 80%, come from the manufacturing process. Choosing a reused computer over a new one can avoid 280 kg of greenhouse gas emissions.
According to Sofia Martinsson who works with sustainable business development at Advania and was involved in the production of this report, there is great potential and value for businesses to incorporate circular IT processes, such as increased efficiency and reduced costs, but also reduced emissions and a more responsible use of resources. Despite this, the report shows that it is difficult to convince businesses and many lack a take-back and reuse strategy.
"In the IT industry, we are now seeing tougher regulations, such as the new EU taxonomy for sustainable business activities. It is also reasonable to assume that the IT and electronics industry will be subject to more stringent circular regulations in the future. Many businesses have not accounted for their part in the value chain, while customers increasingly value sustainability and responsible management of IT equipment. If you don’t start prioritising sustainability aspects, you risk losing relevance both to your customers and to potential talent," says Sofia Martinsson.
According to the report, 84% of respondents are in favour of returning devices for life cycle management, while only 30% are in favour of actual reuse. In general, it is the IT department that is identified as the requirement stakeholder, which means that robustness and performance are prioritised over sustainability.
"It is not uncommon that organisations’ business strategy and sustainability strategy are not sufficiently interwoven, and it is often unclear who is responsible for driving circular processes for IT equipment. In most cases, IT buyers focus primarily on technical specifications when purchasing IT equipment. If you instead focus on function, based on the needs and purpose of the computer, you realise that whether the device is new or not becomes less relevant when procuring," Sofia Martinsson concludes.