Globalisation and the acceleration of digitisation have brought many benefits to people and businesses. Devices and equipment that were once cumbersome and expensive can now be purchased at a fraction of the price, and new models are available every few years. However, with all of the latest technology available at everyone’s fingertips, there is a price. Shortened technology product cycles contribute to the 53 million metric tonnes of e-waste going to landfills annually. That equates to disposing of 800 laptops every second.
With the growing focus on environmental, social and corporate governance (ESG) from the general public, shareholders, and financiers alike, companies are responding by making items more sustainably. Not only are the materials used to make devices and other products important, but ensuring these items form part of the circular economy is the key to helping businesses and society thrive. The circular economy seeks to address ESG issues and extend technology lifecycles by sustainably manufacturing, repairing and repurposing products. Keep reading to learn how the circular economy can help businesses and society thrive.
As the name suggests, the circular economy doesn’t have a start and end point. The aim is for products to be repairable and reusable. The World Economic Forum’s definition of the circular economy summarises the concept: “A circular economy is an industrial system that is restorative or regenerative by intention and design. It replaces the end-of-life concept with restoration, shifts towards the use of renewable energy, eliminates the use of toxic chemicals, which impair reuse and return to the biosphere, and aims for the elimination of waste through the superior design of materials, products, systems, and business models.”
According to Circle Matter’s, The Circularity Gap report 2022, just 8.6 per cent of the world's production is circular. The report also found that the remainder of the world in the “take-make-waste” economy consumes 100 billion tonnes of materials annually, wasting over 90 per cent. To address what’s known as the “circularity gap”, companies are implementing more sustainable practices to handle and use materials.
One of the easiest ways to contribute to the circular economy is by choosing devices that are easy to repair. This reduces the propensity to immediately replace a broken device (which would perpetuate the linear economy) by extending the asset lifecycle and potentially increasing the residual value of financed assets. Recent examples of device manufacturers making changes to become more sustainable include Apple’s self-service repair program and its universal iPhone charger, expected to be introduced with future iPhone models. Similarly, Google and Samsung have partnered with iFixit. This company specialises in providing people with instructions and parts to repair anything from a phone to a vehicle. These developments and a broader commitment by organisations to close the “circularity gap” demonstrate what companies can do to start on their circular economy journeys now.
Devices that are easy to repair help companies extend their asset lifecycles and, in some cases, secure a higher residual value when financed assets are sold. In the case of laptops, there are key factors that companies should look out for to choose assets based on technical specifications and repairability. When assessing potential laptops based on repairability, companies should make sure that:
By choosing devices that deliver both performance and repairability, businesses can use their devices for longer, extending their useful life and reducing the total cost of ownership for the asset. Further, when these devices are financed through sustainable leasing and finance products, the end-of-lease processes ensure devices either have a useful second life or are e-wasted responsibly. This allows companies to become part of the circular economy with the simplicity of engaging with one provider who can manage the entire asset lifecycle to deliver value without compromising on sustainability. And with devices acquired and used with repairability in mind, this provides revenue growth opportunities for repair and parts providers, creating further opportunities for businesses and society to thrive beyond an initial product purchase.
Quadrent’s Green Lease allows companies to become part of the circular economy and contribute to closing the “circulatory gap” through financing the purchase of devices such as laptops and mobile phones. By ensuring each step of acquiring, using and disposing of devices is done with sustainability in mind, suitable devices are securely decommissioned and made available for a “second life”. Quadrent’s Green Lease also provides positive social impacts by giving devices to those in need who may not have otherwise had access to technology, such as a laptop to kids for education purposes.
Companies can play a critical role in responsibly disposing of unused devices while improving digital inclusion with Quadrent’s Green Lease. Not only can this help companies measurably address ESG concerns, but the broader positive social impacts make it a valuable financing option that keeps devices in use for longer.
Quadrent works with organisations helping them proactively address their ESG risk, by accurately managing their leased technology. With a team that has in-depth leasing knowledge and specialised accounting backgrounds, we’ll help you get the most value out of your assets while addressing growing ESG requirements and reporting expectations.
Start your ESG journey simply and effectively with Quadrent. Click here for more information.