5 real-world examples of the circular economy – TechTarget

Report on the Integration of Circular Economy Principles in Information Technology for the Advancement of Sustainable Development Goals

The information technology (IT) sector is undergoing a critical transformation, moving from a linear “take-make-dispose” model to a circular economy framework. This shift is a strategic business imperative that directly supports the achievement of the United Nations Sustainable Development Goals (SDGs), particularly SDG 12 (Responsible Consumption and Production). By designing out waste, extending the useful life of technology assets, and recovering value at every stage, IT leaders can drive significant progress on global sustainability targets while enhancing economic performance.

The Circular Economy: A Catalyst for Sustainable IT and Economic Growth

The circular economy in technology provides a comprehensive framework for aligning IT operations with core sustainability principles. This model is integral to achieving several SDGs:

• SDG 12 (Responsible Consumption and Production): The primary goal is to substantially reduce waste generation through prevention, reduction, recycling, and reuse. Circular IT practices, such as hardware lifecycle management and e-waste reduction, are direct implementations of this objective.
• SDG 8 (Decent Work and Economic Growth): The World Economic Forum estimates that circular models could generate up to $4.5 trillion in additional economic value by 2030, fostering sustainable economic growth by creating new markets for refurbished goods and repair services.
• SDG 9 (Industry, Innovation, and Infrastructure): Circularity promotes innovation in product design, maintenance, and resource management. It encourages the development of more resilient and sustainable technological infrastructure by maximizing the utilization and lifespan of existing assets.
• SDG 13 (Climate Action): By extending the life of hardware and optimizing energy-intensive cloud resources, the IT sector can significantly reduce its carbon footprint, contributing to climate change mitigation efforts.

Core Strategies for Implementing Circular IT in Alignment with SDGs

Standardization for Safe and Scalable Reuse

The adoption of industry standards is crucial for building trust and scalability in the reuse of electronic components. Standards such as IPC-7711/21, which governs the repair of electronic assemblies, ensure that refurbished products meet original performance specifications. This practice directly supports SDG 12.5 by diverting waste from landfills and promoting reuse. Aligning procurement with these standards provides verifiable data for ESG reporting, enhancing corporate transparency and accountability.

Operationalizing Asset Lifecycle Management

Effective circular IT requires treating technology as a valuable asset rather than a disposable commodity. This operational strategy is a cornerstone of achieving SDG 12. Key actions include:

1. Comprehensive Asset Tracking: Monitoring devices by serial number, repair history, and warranty status to maximize their value.
2. Value-Tier Assignment: Categorizing devices to determine the optimal end-of-life pathway, whether internal redeployment, donation, or responsible recycling.
3. Partnerships for the Goals (SDG 17): Collaborating with certified refurbishers and recyclers to ensure a secure and auditable chain of custody, which protects sensitive data and mitigates legal and reputational risks.

Policy Frameworks and Extended Producer Responsibility (EPR)

Legislation such as the Texas Computer TakeBack Law demonstrates the effectiveness of Extended Producer Responsibility (EPR) in promoting circularity. These policies, which mandate that producers manage the end-of-life of their products, create the necessary infrastructure for responsible recycling. By incorporating EPR principles into vendor contracts, organizations can operationalize compliance and contribute to multi-stakeholder partnerships, a key aspect of SDG 17, to manage e-waste effectively.

Software-Driven Optimization for Climate Action

The principles of the circular economy extend beyond hardware to digital resources. In the cloud computing era, optimizing software and infrastructure is the digital equivalent of reuse. By eliminating idle or overprovisioned cloud resources, organizations can:

• Reduce energy consumption, directly supporting SDG 13 (Climate Action).
• Minimize the physical infrastructure required by cloud providers, contributing to resource efficiency under SDG 9.
• Lower operational costs, demonstrating the financial viability of sustainable practices.

Emerging Technologies for Traceability and Transparency

Digital innovations are set to enhance the circular economy’s impact. Digital product passports, which record a product’s materials, repair history, and environmental footprint, provide unprecedented transparency. This traceability makes redeployment safer and more efficient, allowing organizations to verify that components meet sustainability criteria. Such tools are essential for creating a managed, measurable circular process that aligns with the reporting and accountability requirements of SDG 12.

Recommendations for IT Leadership

To integrate circular principles and advance the SDGs, IT leaders should adopt the following practices:

• Design and Procure for Reuse: Prioritize products based on repairability, traceability, and adherence to recognized standards.
• Extend Hardware Lifespan: Implement robust systems to track, redeploy, and measure the recovery value of all technology assets before considering recycling.
• Integrate Sustainability into Core Operations: Treat lifecycle management as a fundamental component of IT strategy, not an ancillary initiative.
• Leverage Digital Tools: Utilize inventory systems, automation, and digital passports to make circular practices measurable and efficient.
• Ensure Compliance and Build Trust: Work exclusively with certified partners to maintain a clear chain of custody, reducing risk and strengthening stakeholder confidence.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on the circular economy in the technology sector addresses several Sustainable Development Goals (SDGs) by focusing on sustainable business practices, resource efficiency, waste reduction, and economic innovation. The primary SDGs connected to the article’s themes are:

• SDG 8: Decent Work and Economic Growth: The article highlights the economic benefits of circular models, stating they could “generate up to $4.5 trillion in additional economic value by 2030” and that most adopters report “positive effects on profit and growth.” This directly connects to promoting sustained, inclusive, and sustainable economic growth.
• SDG 9: Industry, Innovation, and Infrastructure: The discussion revolves around creating a more innovative and responsible IT infrastructure. It emphasizes “data-driven optimization of software and cloud resources” and using standards to make technology repair and reuse mainstream, which aligns with building resilient infrastructure and promoting sustainable industrialization.
• SDG 11: Sustainable Cities and Communities: The article’s focus on e-waste reduction and responsible disposal is relevant to urban waste management. It mentions the “Texas Computer TakeBack Law” and the “City of Austin” working on these issues, which are efforts to manage waste within communities and make them more sustainable.
• SDG 12: Responsible Consumption and Production: This is the most central SDG in the article. The entire concept of the circular economy—shifting from a “take-make-dispose model to a system where reuse, refurbishment and responsible recycling are a natural part of day-to-day operations”—is the core of ensuring sustainable consumption and production patterns.
• SDG 13: Climate Action: The article links IT practices to climate impact by discussing “energy-hungry cloud workloads.” It explains that optimizing cloud resources reduces waste and “the physical infrastructure that cloud providers must build,” thereby lowering energy consumption and the associated carbon footprint.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s discussion of circular IT practices, several specific SDG targets can be identified:

1. Target 8.2 (under SDG 8): Achieve higher levels of economic productivity through diversification, technological upgrading and innovation. The article describes the circular economy as a framework for “more innovative and responsible IT” that turns an environmental initiative into a “competitive advantage,” directly linking technological innovation to economic benefits.
2. Target 9.4 (under SDG 9): Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies. The article’s focus on “hardware lifecycle management,” “software-driven optimization,” and extending the life of technology assets are all examples of upgrading IT infrastructure and processes to be more sustainable and resource-efficient.
3. Target 11.6 (under SDG 11): Reduce the adverse per capita environmental impact of cities, including by paying special attention to … municipal and other waste management. The article’s detailed discussion on “e-waste reduction,” working with “certified refurbishers and recyclers,” and policy lessons from “e-waste laws” like the Texas TakeBack Law directly addresses the challenge of managing electronic waste.
4. Target 12.2 (under SDG 12): By 2030, achieve the sustainable management and efficient use of natural resources. The core idea of the circular economy, as described in the article, is “keeping materials, components and assets in use for as long as possible,” which is a direct strategy for the efficient use of natural resources.
5. Target 12.5 (under SDG 12): By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse. The article is built around this target, advocating for a shift from a “buy-use-discard model” to one that prioritizes “maintain, reuse, refurbish and recycle” to “design out waste.”
6. Target 12.6 (under SDG 12): Encourage companies … to adopt sustainable practices and to integrate sustainability information into their reporting cycle. The article explicitly states that organizations face “mounting pressure to report sustainability outcomes” and that aligning with standards allows them to “show verifiable results in your ESG reports,” encouraging the adoption and reporting of sustainable practices.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions and implies several indicators that can be used to measure progress towards the identified targets:

• Percentage of operations using circular models: The article provides a baseline by stating that “circular business models still account for less than 10% of operations in most sectors.” Tracking the growth of this percentage would be a direct indicator of progress.
• Rate of technology asset reuse and redeployment: The article suggests tracking devices to determine which can be “redeployed internally.” An indicator would be the number or percentage of IT assets (laptops, servers) that are redeployed rather than discarded, measuring the extension of their useful life.
• Volume of e-waste reduction: The focus on “e-waste reduction” implies a need to measure the amount of electronic waste generated by an organization. A key indicator would be the year-over-year reduction in the total tonnage of e-waste sent to landfills.
• Recycling and refurbishment rate: The article emphasizes working with “certified refurbishers and recyclers.” A measurable indicator is the percentage of retired IT equipment that is sent for certified refurbishment or recycling versus being disposed of.
• Cloud resource utilization efficiency: The mention of “idle or overprovisioned cloud resources” points to an indicator. Progress can be measured by tracking the reduction of such waste, for example, by monitoring the percentage of utilized vs. provisioned cloud computing resources.
• Number of companies reporting on circularity: The reference to ESG reports and the need to show “verifiable results” implies that an indicator of progress is the number of companies that formally integrate circular economy metrics into their public sustainability or ESG reporting.
• Adoption of traceability standards: The discussion on “digital product passports” and traceability suggests an indicator related to the adoption of these tools. This could be measured by the percentage of new products procured that come with digital passports or meet specific traceability standards.

4. Table of SDGs, Targets, and Indicators

Source: techtarget.com