Green IT study: Usage over ownership greatly reduces carbon emissions

Compared with the traditional approach of purchasing equipment, IT usage models such as leasing and device-as-a-service (rental) offer clear benefits regarding an organization’s carbon footprint. This is the key finding of a recent study on green IT carried out by CHG-MERIDIAN and the Belgian research institute VITO. Usage models thus offer companies the opportunity to improve the sustainability of their IT infrastructure procurement, which helps to conserve both financial and natural resources.  

For the first green IT study commissioned by CHG-MERIDIAN, VITO prepared model calculations of the environmental footprint of smartphones, laptops, and desktop PCs in different usage scenarios (purchase, leasing, DaaS). The study found that a DaaS (rental) model with successive usage cycles until the equipment reaches the end of its useful life can bring down the carbon emissions associated with devices such as smartphones by more than half. The consumption of raw materials can be reduced by as much as two-thirds compared with a purchase model under which most devices are not remarketed.  

Refurbishing and remarketing IT assets even just once after their first usage cycle has a significant effect: Extending the asset’s period of use means that the carbon emissions associated with its total lifespan are reduced by more than a third. This is because, under a DaaS or leasing model, the leasing or rental provider takes the IT assets back at the end of the first period of use, refurbishes them, and reintroduces them to the market. As a result, fewer new devices need to be produced. In this context, it is important to bear in mind that a large proportion of the carbon emissions associated with IT assets are generated during their production. The green IT study shows that 76 percent of the carbon footprint of a smartphone is attributable to the production process.

For companies faced with the challenge of meeting regulatory requirements while also managing the balancing act between profitability and sustainability, usage models such as leasing and DaaS are essential. In the spirit of a circular economy, these models shift the focus from product ownership to getting as much use as possible out of every product. This systematically increases the intensity of use and extends the useful life of a product. If existing assets stay in the market for multiple usage cycles and are thus used more intensively, overall demand for new devices reduces. This takes pressure off already strained supply chains.  

The green IT study commissioned from VITO by CHG-MERIDIAN shows that integrated lifecycle management and usage models allow businesses of all sizes to become part of a circular economy for IT. “Our task is to help our customers to use their IT in the most environmentally friendly way possible. By providing secure data erasure processes, comprehensive transparency throughout the asset lifecycle, and innovative finance options, we facilitate the multiple reuse of IT equipment. We therefore offer a unique combination of sustainability and lower costs,” says Dr. Mathias Wagner.