Modern businesses are waking up to a simple but profound truth: sustainability is not just a buzzword—it’s a business imperative. In an era of rising climate awareness, stakeholder activism, and regulatory pressure, companies are expected to do more than generate profit; they are expected to lead responsibly. This shift has put a spotlight on everything from supply chains to data centers. Yet one area still escaping full scrutiny in many boardrooms is how IT hardware is sourced, used, and retired.
Every year, millions of functional electronic devices are discarded and replaced with new ones, not because they’ve failed, but because they’re deemed “outdated.” This practice contributes to the world’s fastest-growing waste stream: electronic waste (e-waste). Globally, a record 62 million tonnes of e-waste was generated in 2022 unitar.org. But there is a smarter path—one that turns discarded devices into strategic assets and transforms what could have been a waste into value. This is the promise of circular IT.
Forward-thinking companies aren’t waiting for regulations to force change; they are proactively rethinking the role of IT within their sustainability goals. In doing so, they’re setting benchmarks that others will soon have to meet.
What Are the Environmental Costs of IT Hardware?
The environmental data is a wake-up call. Producing a single new laptop can emit over 300 kg of carbon dioxide, and require up to 190,000 liters of water and more than 1,000 kg of natural resources to manufacture. When businesses routinely replace hardware across offices and regions, these embodied environmental costs scale exponentially.
Yet, most companies don’t account for hardware production emissions in their environmental reporting. They may focus on energy efficiency in operations and carbon offsets for travel, but often overlook the embodied carbon and resource footprint of their devices. This blind spot weakens sustainability strategies and exposes businesses to reputational risk.
Circular IT provides a clear path to improvement. By extending the life of existing devices through reengineering and reuse, companies can drastically reduce their environmental footprint. For example, opting for one refurbished device instead of buying new saves roughly the 300 kg of emissions, 1,200 kg of minerals, and 190,000 L of water. These tangible metrics can be included in ESG reporting to demonstrate real progress. In short, sustainable IT procurement directly translates to measurable environmental gains.
How Can IT Move from Compliance to Impact?
Many businesses adopt sustainability policies primarily to meet compliance requirements or check boxes for reporting. True leadership, however, comes when companies go beyond the minimum and make sustainability part of their culture. Circular IT offers that leap—from passive compliance to active impact.
Imagine being able to say your organization avoided hundreds of tons of CO₂ last year simply by rethinking how you procure and manage IT equipment. Imagine equipping your teams with high-performance devices that deliver the reliability you need while also reducing your carbon footprint. Some companies are already doing this, not just as an environmental gesture, but as a strategic edge in their industry.
In these organizations, circular IT isn’t a sacrifice; it’s a smart operational decision. It creates a narrative where IT contributes to sustainability in a very visible way. Employees can take pride in using devices that align with the company’s values. Stakeholders see innovation in action, beyond policy statements. By embracing circular IT, companies demonstrate that they are actively reducing waste and emissions, rather than just compensating for them.
Why Does Sustainable Leadership Begin with Procurement?
Procurement is more than a transactional process; it’s a reflection of a company’s true priorities. Today’s forward-looking organizations evaluate not just the upfront cost and specs of a device, but also how each purchase contributes to long-term efficiency, sustainability, and resilience.
Choosing circular IT procurement is a quiet signal of maturity. It shows that a company understands the balance between innovation, cost efficiency, and responsibility. Organizations seeking reliability, speed, and sustainability are exploring alternatives to the old “buy new” model. In doing so, they often find not just a product, but a principle.
In practical terms, this means procurement teams are asking new questions: Can we extend the life of devices already in use? Do we have enterprise-grade refurbished alternatives for our next hardware refresh? How will this decision affect our Scope 3 carbon emissions? Will our choice help reduce global e-waste? Such questions elevate procurement from a cost-center activity to a value driver. The act of purchasing IT hardware becomes intertwined with corporate sustainability goals and even talent retention, as younger workforces prefer employers who act on values. The whole organization benefits when procurement is driven by insight rather than inertia.
What Really Happens to Retired IT Devices?
Consider what happens when a company retires hundreds of devices at once. In many cases, they end up in landfills or informal recycling centers in developing countries. These sites often lack proper safety controls, releasing toxic chemicals into air, water, and soil, and exposing workers and communities to health hazards. This isn’t just an environmental issue—it’s a human one. And brands can no longer ignore it. As consumer and investor awareness grows, so does scrutiny of how companies handle their end-of-life electronics. Businesses that don’t manage their e-waste responsibly risk legal consequences, public backlash, and loss of trust.
Circular IT offers a different route. Devices returned through proper channels can be refurbished for reuse or recycled responsibly through certified processes (following e-waste regulations and safety standards). In a truly circular approach, nothing (or at least very little) ends up in a landfill – everything gets a second chance either as a refurbished product or as raw material recovered through recycling.
By implementing IT asset take-back programs and working with certified e-waste partners, companies turn a potential liability into an opportunity. They ensure data is securely wiped (protecting against breaches) and that valuable materials are recovered. This responsible end-of-life management closes the loop, turning what would be waste into input for new manufacturing, and it protects the company’s brand from the stigma of contributing to e-waste dumps.
Is Circular IT a Compromise or an Innovation Engine?
Contrary to the outdated notion that using refurbished tech means settling for less, circular IT is actually about greater resilience and agility. Companies that shift to this model often discover it opens doors to innovations and improvements—not just cost savings.
When IT budgets are freed from the burden of constantly buying new hardware, they can be redirected to areas that truly drive transformation: digital software upgrades, cloud initiatives, employee training, or enhanced customer experiences. Operational teams can move faster when they aren’t waiting on capital for new hardware; they can deploy pre-approved refurbished devices quickly as needed. Sustainability officers gain credible metrics to report. And leadership can tell a compelling story of innovation that marries financial savvy with environmental stewardship.
In fact, some organizations have turned their circular IT programs into award-winning case studies and investor talking points. The positive ripple effect is very real: from improved uptime (thanks to ample spare devices and parts) to stronger community relations (by reducing waste and donating used equipment where appropriate). Smart tech reuse builds a smarter bottom line, proving that circularity can be an engine for innovation rather than a compromise.
How Does Circular IT Future-Proof Your Business?
Global trends are clearly moving toward circularity. From the European Green Deal and Circular Economy Action Plan in the EU to extended producer responsibility laws in Asia, the regulatory landscape is shifting fast. Investors increasingly favor companies with clear environmental strategies, and employees want to work for purpose-driven organizations. In this context, adopting circular IT is not just a smart choice for now—it’s a strategic move for the future.
Companies that embed circular models today aren’t just adapting to trends; they’re leading. They’re less vulnerable to supply chain disruptions because they rely more on existing devices and refurbished stock. They’re ahead of forthcoming regulations that might mandate reuse or recycling quotas. They also build goodwill by demonstrating a commitment to global initiatives like the UN Sustainable Development Goals (e.g., SDG 12 on responsible consumption and production).
What sets these leaders apart is not just the technology they deploy, but the mindset guiding those decisions: thoughtful procurement, transparent reporting of environmental impacts, and a preference for long-term value over short-term gains. In essence, a circular IT approach helps future-proof the company by aligning IT operations with sustainability, compliance, and financial prudence all at once.
Conclusion: Be the Company That Leads, Not the One That Lags
Sustainability is no longer optional; it’s a defining characteristic of modern leadership. And it starts with the choices you make today. From how you source IT hardware to how you manage its end-of-life, every decision tells a story.
Do you want your story to be one of avoidable waste or intentional progress? Of passive participation or active leadership? The best businesses are those making quiet decisions now that others will call visionary later. They reimagine “waste” as opportunity. They use procurement as a lever for sustainability. They see technology not just as a product, but as a platform for positive impact.
In short, it’s time to move from landfill to leadership. The path is open and the moment is yours to take.
Ready to lead by example in IT sustainability?
Contact Dithari to start a circular IT pilot or audit your current device lifecycle. We’ll help you turn e-waste liabilities into business assets, so you can redefine sustainability leadership in your organization.
