The Circular Economy: Transforming IT Infrastructure

As IT leaders and stakeholders responsible for the procurement of your organisation’s IT infrastructure, you are increasingly faced with the challenge of aligning operations with sustainability goals. One of the most effective approaches to achieving this is by embracing the circular economy—a model that not only reduces environmental impact but also maximises the value of your technology investments.

What is the Circular Economy, and Why Does I.T. Need It?

The circular economy is an economic system aimed at eliminating waste and promoting the continual use of resources. It contrasts with the traditional linear economy, which follows a “take, make, dispose” model. In a circular economy, the focus is on designing out waste, keeping products and materials in use, and regenerating natural systems.

The need for a circular economy in IT is more urgent than ever. The IT industry is a significant contributor to global carbon emissions, primarily due to the energy-intensive processes involved in manufacturing and the widespread issue of electronic waste (e-waste). By making strategic procurement decisions that align with circular economy principles, IT leaders can minimise the environmental impact of their infrastructure while also enhancing operational efficiency.

Key Factors Contributing to the Carbon Footprint of IT Manufacturing

Understanding the sources of carbon emissions in IT manufacturing helps highlight where circular economy principles can make the biggest impact. Several key factors contribute to the carbon footprint of technology manufacturing, each representing an opportunity for technology vendors and IT leaders to make more sustainable choices:

1. Material Extraction: The extraction of rare earth metals and other materials used in electronics is a significant environmental concern. Mining operations are energy-intensive and often cause severe environmental degradation, including habitat destruction and water pollution.
2. Manufacturing Processes: The production of electronic components and the assembly of devices are highly energy-intensive, contributing significantly to carbon emissions. This includes everything from the fabrication of semiconductor chips to the assembly of end-user devices.
3. Transportation: Shipping components and finished products around the globe adds to the carbon footprint of the technology manufacturing process. Transportation is an often-overlooked aspect of the supply chain that has a substantial environmental impact.
4. End-of-Life Management: The improper disposal of electronic waste releases harmful substances into the environment, including heavy metals and toxic chemicals. E-waste is a growing problem, with the United Nations reporting that the world generates approximately 50 million tons of e-waste annually, and only 20% of it is recycled. Without intervention, e-waste could reach an astonishing 120 million metric tons per year by 2050.

The Circular Economy in IT Infrastructure: Three Key Factors

The concept of a circular economy is not new. It dates back to the 1970s when architect and economist Walter Stahel proposed an economy in loops, emphasising reuse, repair, and recycling. In the context of IT infrastructure, embracing circular economy principles can significantly reduce the environmental impact of your operations as well as deliver other key benefits. Here are three key factors to consider:

1. Circular Design

Circular design is a philosophy and practice focused on creating products and systems that are regenerative by design. This approach is particularly relevant in IT infrastructure, where the traditional linear model is being replaced by strategies that prioritise sustainability.

Here are some examples of how circular design principles can be applied to IT infrastructure:

• Material Use: Recycled materials can be used instead of virgin resources, and material use can be minimised through lightweighting techniques and the removal of non-essential cosmetic features.
• Standardisation and Modularity: Design modular subassemblies to enhance repairability and upgradability, and use standard components across products to simplify repairs and recycling.
• Packaging and Accessories: Reduce the use of virgin packaging materials, optimise packaging for efficient transportation, and eliminate unnecessary accessory items.
• Smart Energy Consumption: Increase the energy efficiency of products, develop scalable energy usage modes, and optimise the energy consumption of power supplies.
• Disassembly, Reuse, and Repair: Design products for easy disassembly and repair, use homogeneous materials compatible for recycling, and ensure that batteries and other components are easily removable.

While you may not have direct input into the manufacturing process, you can influence it by prioritising vendors who adhere to circular design principles. Ensuring that the products you procure are built with sustainability in mind ultimately supports your organisation’s environmental and operational goals.

2. Take-Back and Reuse Programs

Take-back and reuse programs are essential components of a circular economy. These programs ensure that end-of-life products are either refurbished for reuse or responsibly recycled, preventing them from ending up in landfills.

There is a global trend towards imposing stricter regulations on e-waste. Many countries have implemented laws or directives that require manufacturers to take responsibility for the end-of-life management of their products. In the European Union, the WEEE (Waste Electrical and Electronic Equipment) Directive places extended producer responsibility (EPR) on manufacturers, requiring them to provide take-back systems for electronic products. Despite Brexit, the UK has retained WEEE regulations that were in place before the withdrawal from the EU.

By reusing and recycling electronics, the environmental impact of technology disposal is significantly reduced. This not only helps end-user businesses meet their own sustainability goals but also ensures that hazardous materials do not contaminate the environment.

3. Remanufactured Products and Resell

Remanufacturing extends the life of IT equipment, offering a sustainable alternative to purchasing new products. Remanufactured products require only a fraction of the energy, raw materials, and water needed to produce new products, while still delivering the same performance and reliability.

Benefits of remanufactured IT products include:

• Cost Savings: Remanufactured products are typically more affordable than new ones, allowing organisations to extend their IT budgets further.
• Immediate Availability: Remanufactured products are available more quickly than new products, which is advantageous when dealing with long lead times.
• Quality and Support: Many technology vendors, like Cisco, offer certified remanufactured products that meet the same quality standards as new products. These products also come with the same warranty and service options, providing peace of mind.

Cisco Refresh

We’ve championed Cisco Refresh since its launch in 2015. As an Authorised Cisco Partner, we’re able to offer our clients access to an extensive catalogue of certified Cisco remanufactured products, including switching, routing, wireless, IP telephony, security, and other advanced technologies.

Equipment is remanufactured with genuine Cisco parts in an environmentally responsible, ESD-controlled environment. Critical firmware and hardware upgrades are applied to ensure optimal performance, and each product includes a valid Cisco IOS software licence.

Products are not limited to end-of-sale items, but Cisco Refresh also carries over 6,500 active products (currently on the Global Price List) in its inventory.

Joining the Circular Economy

Cisco Refresh and similar programs offer IT leaders and businesses an excellent opportunity to participate in the circular economy. By choosing remanufactured products, you not only reduce your environmental impact but also gain access to high-quality, certified equipment at a lower cost.

When considering any new IT investments, we encourage you to first check vendor inventories for available remanufactured products, especially for legacy products that are not performance-critical. Combining remanufactured products with next-generation technologies allows organisations to achieve performance and efficiency gains while also supporting sustainability goals.

Embracing the circular economy in IT not only helps reduce environmental impacts but also optimises the return on technology investments. Explore options like Cisco Refresh to make a meaningful contribution toward a more sustainable IT future.

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