R2v3: Why It’s Important and How Quadrent Can Help

Technology assets, such as laptops and mobile devices, play an important role in modern education and workflows. With the amount of use these devices get, the necessity to replace and upgrade them arrives at regular intervals, which is one of the causes of the growing e-waste problem. In New Zealand, e-waste is 19.5 kilograms per capita, while it sits at 21.9 kilograms per capita in Australia — far above the global average of 7.3 kilograms per capita.

There is a financial cost for disposing of all e-waste, and when business decisions are driven by getting the cheapest option, it can leave companies exposed to costly risks. These risks include data security breaches, reputational damage and regulatory breaches. To address the growing e-waste problem, the Responsible Cycling Version 3 (R2v3) certification helps companies identify if they are engaging a partner that supports sustainable technology disposal. With the growing financial, regulatory and environmental risk associated with improper e-waste disposal, it’s critical that companies engage the right partners throughout their supply chain. Keep reading to learn more about R2v3, why it’s important, and how Quadrent can help.

What are the risks of not disposing of your technology responsibly?

• being accused of greenwashing if your company purports to be concerned about its environmental impact
• exposure to an unsecured downstream chain of custody, which can result in sensitive data falling into the wrong hands
• exposure of sensitive information if business data is not properly erased
• end-of-life assets ending up in landfills without the business’s knowledge
• end-of-life assets ending up in UN sanctioned regions without the business’s knowledge
• inadequate governance processes that result in poor or unavailable data to meet global reporting requirements on environmental impact.

The consequences of not proactively addressing the financial and ESG risks associated with technology disposal are far-reaching. From direct legal consequences that will concern the company and its board to having difficulty securing funding and investment due to long-term reputational damage, taking the time to properly select and engage with R2v3 compliant vendors can help to proactively mitigate risk.

What is R2v3?

R2v3 is the latest version of the R2 standard. It was established by Sustainable Electronics Recycling International (SERI) and sets out guidelines for companies to safely and sustainably recycle electronic waste. The core elements of R2v3 are:

• Environmental impact: Ensuring asset recyclers adhere to best practices in recycling electronic waste to minimise environmental harm.
• Data security: R2v3 mandates strict data destruction protocols so sensitive information isn’t compromised.
• Health and safety: Worker safety is paramount under R2v3, and recycling processes must not threaten human health.

How can businesses comply with the highest standard of responsible disposal?

Any company that needs to dispose of technology, regardless of whether it is to be refurbished for the secondary market or disposed of, carries a high level of ESG risk. For that reason, businesses should partner with R2v3-certified IT Asset Disposal (ITAD) companies to ensure their technology disposal is responsible, ethical and legal. Searching for and engaging an R2v3 ITAD partner can be time-consuming and challenging, so engaging an asset leasing provider who can responsibly manage the entire asset lifecycle from procurement to disposal, while adhering to the local environmental standards and mandates can reduce your ESG risk.

How Quadrent and R2v3 can solve disposal risks

The right asset leasing provider should not only offer environmentally conscious financing options but also engage with providers that will properly manage the asset’s end-of-lifecycle disposal process. Quadrent, for example, only engages R2v3 certified ITAD partners. As a result, Quadrent’s processes are audited in a system and organisation controls (SOC) report by a leading professional services firm to ensure they always meet the mandated standards.

By choosing asset leasing and finance products that proactively address ESG risk, businesses get assurance that their assets are appropriately decommissioned and recycled. Further, the formal auditing and reporting processes ensure companies have the comprehensive information they need to meet climate reporting requirements.

Quadrent’s Green Lease is a circular economy initiative designed to improve companies’ sustainability. This is done by ensuring products, materials, and devices are in use longer while also giving back to communities through providing recycled devices to schools and community organisations in need of electronics, such as laptops and tablets, for learning.

Proactively meet R2v3 requirements with Quadrent’s asset finance and leasing solutions

The growing amount of environmental regulation and mandated reporting increases risk and creates additional processes that companies must complete to comply. By engaging an asset leasing and financing provider like Quadrent, companies can use the Quadrent Green Lease to keep devices up to date while ensuring they are not harming the environment or downstream supply chains. Further, even if your assets aren’t currently managed under a green lease, the process to transition is relatively straightforward.

Quadrent's asset financing and leasing solutions, such as the Quadrent Green Lease, can help you unlock cash flow, ensure your company’s processes meet R2v3 requirements, and proactively manage ESG risk. Click here to contact our team for more information.