Episode 9: Sustainability in technology procurement
- Embedded IT
- Oct 7, 2024
- 3 min read
Updated: Jan 22
The growing importance of sustainability in tech
Sustainability has become a central topic in technology procurement. Hardware production relies on rare materials, energy-intensive manufacturing, and long-distance shipping, all of which carry significant environmental costs. On top of that, frequent hardware refresh cycles mean organisations are constantly buying and disposing of equipment to keep up with software demands.
Beyond the physical devices, the energy footprint of technology is increasing rapidly. As cloud services and artificial intelligence continue to scale, data centres consume vast amounts of power. Estimates suggest that around 10 percent of the world’s energy is now used by data centres, a figure that is likely to rise. Understanding how to minimise this impact is becoming essential for anyone involved in technology strategy or procurement.
Sustainability, social value, and ESG
There is often confusion between sustainability, social value, and ESG. Sustainability is directly tied to environmental impact, resource use, and the principles of the circular economy. Social value is broader, covering wider societal benefit such as supporting local businesses or contributing to Covid recovery efforts. ESG, meanwhile, refers to how organisations report their environmental and social performance.
Because sustainability has become a popular theme, greenwashing is common. Many organisations present themselves as environmentally conscious without meaningful evidence. When working with technology suppliers, it is important to ask deeper questions about their supply chain, environmental practices, and how their claims are substantiated.
Why sustainability in technology matters
The environmental reasons are clear, but there are also commercial factors. Recycled materials are becoming more viable as an alternative to mining new resources. Innovations such as bioleaching, where metals are extracted from old circuit boards using enzymes, offer a far lower-impact way of recovering valuable materials.
There are also supply chain considerations. With global tensions rising, reliance on overseas manufacturing carries risks. Urban mining and local recycling of unused devices can help reduce dependency on imports. Many households already have old laptops and phones gathering dust because people worry about the data on them. These devices represent accessible raw materials that could support local production.
Environmental impact remains the most important driver. If the technology industry does not address its contribution to climate change, the consequences will be significant.
Understanding energy consumption and emissions
Energy usage is central to the conversation. Greenhouse gases are directly linked to energy consumption, and technology is a major contributor. Sustainability assessments often focus on scope 1, 2, and 3 emissions. Scope 1 and 2 relate to an organisation’s direct emissions and purchased energy. Scope 3 covers emissions linked to the supply chain and is harder to measure.
Cloud providers have historically struggled to present accurate scope 3 data. Only a few, such as Microsoft and Google, offer reliable reporting at present. Greater transparency is essential, and organisations must push suppliers to provide data that allows for informed, sustainable choices.
Building the skills and confidence to navigate sustainability
Specialist expertise in sustainable technology is still emerging, but many principles are straightforward. Asking the right questions is often enough to make significant progress. When purchasing hardware or services, organisations should understand the environmental impact and request evidence from suppliers.
Policies can also make a difference. Extending hardware refresh cycles is one example. Most users can manage with much older devices than they think, especially if maintained properly. Manufacturers often label hardware as unsupported simply to encourage upgrades, but third-party support and maintenance options exist. While not suitable for every situation, extending hardware life can reduce cost and environmental impact.
The role of recycled and remanufactured hardware
Recycled and repurposed hardware is increasingly accessible. Many suppliers now specialise in reused laptops, servers, and components that have been tested and refurbished for continued use. Searching for “technology circular economy” reveals a wide range of reputable providers.
Responsible disposal is equally important. Instead of throwing hardware away, organisations should work with partners who can certify that components will be reused or recycled in a sustainable way rather than sent to landfill.
Making sustainability a core part of technology decisions
There is still a long way to go, but progress starts with education and awareness. Organisations should treat environmental considerations as seriously as cost. By understanding the impact of procurement choices, asking the right questions, and favouring sustainable suppliers, it becomes possible to reduce harm while still meeting business needs.
For organisations looking to improve the sustainability of their technology procurement, get in touch.
