By Xperien CEO Wale Arewa

Companies that embrace ITAD practices will not only reduce their environmental footprints and enhance their social impacts but build stronger, more resilient brands that are well-equipped to meet future challenges.

As the corporate world increasingly prioritises ESG factors, integrating ITAD into sustainability strategies is not just beneficial but imperative while adhering to ESG principles:

Environmental stewardship through ITAD
The environmental aspect of ESG emphasises reducing waste, conserving resources and minimising pollution. ITAD directly contributes to these goals by extending the lifespan of IT equipment and promoting the circular economy.

Extending IT asset lifespan
By refurbishing and reusing IT equipment, companies can prevent premature disposal of devices. This practice reduces e-waste and conserves the energy and raw materials required to manufacture new products. According to the United Nations (UN), extending the lifespan of IT assets can significantly lower the carbon footprint associated with electronic manufacturing and disposal.

Responsible disposal of hazardous material
Electronic devices often contain hazardous substances that can harm the environment if not disposed of properly. ITAD services ensure these materials are handled in compliance with environmental regulations, thereby preventing soil and water contamination.

Social impact and corporate social responsibility
The social component of ESG focuses on how companies impact their employees, communities and society at large.

Reducing inequalities and supporting quality education
Donating refurbished IT equipment to disadvantaged communities can help bridge the digital divide. Access to technology is crucial for education and economic opportunities and aligns with the UN Sustainable Development Goals 10 and 4.

Employee engagement and benefits
Selling refurbished IT equipment to employees at a discounted rate can be a valuable benefit, promoting employee satisfaction and engagement.

Governance and compliance in ITAD
Governance in the context of ESG refers to the mechanisms, processes and practices directing and controlling companies. Effective ITAD governance is essential for data security, regulatory compliance and transparent reporting. ITAD governance includes financial reporting and due diligence for end-of-life assets. The value of IT assets after three years can be around 15% of the original purchase price and can be misappropriated or mismanaged if proper governance and controls are not in place.

Data security and privacy
As companies dispose of IT assets, ensuring data security is paramount. Effective ITAD governance includes stringent data erasure and destruction methods complying with standards such as NIST 800-88 and DoD 5220.22-M. This helps organisations safeguard sensitive information and comply with data protection regulations like the General Data Protection Regulation and the Protection of Personal Information Act.

Regulatory compliance
Non-compliance with environmental and data protection regulations can result in severe penalties and reputational damage. By adhering to industry standards and obtaining relevant certifications (such as ISO 9001 for quality management systems and ISO 14001 for environmental management systems), companies can mitigate these risks and demonstrate their commitment to responsible practices.

Transparent reporting
Transparency in reporting ESG impacts is critical for building trust with stakeholders. ITAD services can provide detailed reports on the environmental and social benefits of asset disposition such as the amount of diverted from landfills or the number of devices donated to communities. This information can be used in sustainability reports and to meet disclosure requirements.

Integrating ESG principles into ITAD practices

Alignment of ITAD with ESG principles is not merely beneficial but essential in today's business environment. As companies strive to enhance their sustainability profiles, ITAD offers a tangible way to achieve and report on ESG goals. Key steps are:

Assessment and planning: Begin by assessing the current state of IT asset management and identifying areas where ITAD can contribute to ESG objectives. Develop a comprehensive plan including policies for asset reuse, donation and recycling as well as procedures for secure data destruction.

Partnering with certified ITAD providers: Work with ITAD providers that have relevant certifications and a proven track record of environmental and data security compliance. Ensure these partners are aligned with the company's ESG goals and can provide detailed impact reporting.

Employee training and engagement: Educate employees about the importance of ITAD and how it contributes to the company's ESG goals. Encourage employees to participate in asset redeployment programmes supporting initiatives such as device donation drives.

Monitoring and reporting: Continuously monitor the outcomes of ITAD practices and measure their impact on environmental sustainability, social equity and data security. Use this data to improve practices and to communicate achievements to stakeholders through sustainability reports and other disclosures.