Guide: how to procure IT products for the circular economy

Circular IT management reduces climate impact, e-waste levels and resource consumption. It can also save significant costs. However, to be able to use IT products in a circular manner, you need to set the right criteria in procurement.

Make use of dialogs, meetings and RFIs to gather information. Clarify your ambitions and needs within sustainability and circularity. Specify the sustainability data you want to get access to.

• Do they offer refurbished or remanufactured products with a warranty?
• Can they repair and upgrade the product after the warranty period ends?
• Do they offer product buybacks?
• If so, do they resell the products to extend product life? Where do the products end up?
• Do they delete data on used products according to a secure standard?
• Do they handle discarded products in an environmentally safe way, and recycle components and materials?
• Can they provide proof of all of the above?

A credible sustainability certification makes your work with circular IT more efficient and saves your resources. A trustworthy certification should include both driving circularity criteria and independent verification of compliance.

• Ask if the supplier has certified products to offer.
• Ask if it is possible to filter out these products in their webshop.
• Request a list of all certified products, divided by product category and brand.
• Remember — asking for certified products is a great way of driving sustainability and improving the availability of more sustainable products on the market!

As mandatory sustainability reporting becomes more common, organizations are increasingly dependent on credible sustainability data from their suppliers.

• Ask the supplier what sustainability data they can offer and whether it has been verified by independent experts.

To enable circular IT management, products must be designed and made for a long life. Materials and components should be possible to recover. Here are some examples of requirements that you should include in procurement.

• Products must be repairable and upgradeable to function for a long time.
• Spare parts must be available throughout the product’s planned lifetime.
• Portable products should be durable and withstand high and low temperatures.
• Product performance should be high enough to keep users satisfied and productive for a long time.
• IT products are often discarded because the battery has lost its ability to hold a charge. You need a good-quality battery that can be replaced.
• The product should include software that maximizes battery performance and lifespan.
• Safer chemicals enable safe reuse and recycling of materials.

Product-as-a-service solutions are becoming more common. Sometimes, service and maintenance are included. Instead of owning computers, monitors and other peripherals, your organization can pay for access to complete workstations with full functionality.

• Keep in mind that leasing services are not automatically circular. You must include circular criteria, just as you do when buying products.
• Require that the IT products you lease get a long first life, at least 4-5 years.

Greenhouse gas emissions generated by data centers are increasing rapidly. In addition, IT products in data centers are connected to many other social and environmental sustainability risks throughout their life cycle. It’s crucial to include sustainability criteria when you procure cloud and data storage services.

• TCO Certified is available for servers, data storage products, and network equipment. Using the certification is an easy way to include social and environmental criteria, also covering circularity.
• In addition, require that excess heat is used to heat buildings and that the data center is powered by renewable energy.

To fit into the circular economy, products must be of good quality and function for a long time without breaking. Ask for an extensive warranty that covers service, repairs and battery replacements for your estimated lifetime.

• If you buy new products, ask for a warranty period and service agreement that allows you to use notebook computers for at least four years and displays for at least seven years.
• Spare parts must be available throughout the warranty period to allow for upgrades, refurbishment and remanufacturing.
• Require that the battery is replaced at a certain point of capacity degradation and that some level of servicing is included during the first three years, provided that the product is handled with care.
• Demand a cost cap for the service agreement. The cost of regular service and battery replacements should not exceed the purchasing price.
• Second-hand products should also be covered by a warranty, so you can count on the devices functioning well for a certain amount of time.

Think long-term when you purchase an IT product. Buy a high-performance product with enough capacity to meet your needs for several years. Replacing traditional software with cloud-based solutions can also reduce the need for performance and enable a longer lifespan.

Higher performance often means that the product uses more energy, but this is negligible compared to the climate impact that stems from the manufacturing phase. The most climate-friendly choice is a product with the capacity for a long life. High-performing products may be more expensive but may pay off in the long term.

From a circular perspective, maximizing product life is critical. When the product no longer meets the needs of the first user, it should be redistributed or sold to a second user. Second-hand purchases generally reduce both costs and sustainability impact.

• Select product models that are or have been certified according to TCO Certified, to ensure they are designed for a long life. Comprehensive circular criteria have been part of TCO Certified since 2018.
• Reselling products is an opportunity for additional income. Connect with a reputable refurbishment or remanufacturing firm.
• Ask for proof that the product actually has been refurbished or remanufactured and sold to a new user, to stop it being discarded prematurely.
• You also need proof that data has been deleted in a secure manner.

Identifying the right KPIs can help you meet legal requirements on sustainability reporting and take steps toward meeting internal or external sustainability goals. For IT, the sustainability impacts are embedded in the products you use. Our tools Product Finder and Report Generator present independently verified sustainability data connected to each product model.

• Product Finder information on annual energy use for each product model, combined with emissions from your organization’s energy mix can be used for climate reporting.
• In addition to product use, you should also include emissions from cloud services and repair services.
• Indirect climate impact (scope 3) stems from the manufacturing phase. A prolonged use time leads to lower annual scope 3 emissions.

• Information about product weight and the amount of recycled plastic in Product Finder allows you to measure the amount of e-waste your organization generates.
• Use this data to set targets for reduced e-waste.

Annual e-waste. Alternative scenarios based on use time.

Managing IT products in a circular way can help us tackle many of today’s sustainability challenges, such as climate change, biodiversity loss, toxic pollution and even social responsibility in the supply chain. TCO Certified makes work easier. If you want to know more, please get in touch!