The CIO Sustainability KPI’s

Executive Summary

Chief Information Officers (CIOs) and IT leaders were increasingly involved in sustainability efforts within their organizations, although specific metrics may vary depending on the organization’s priorities and industry. Here are some common metrics that CIOs and IT leaders might track regarding sustainability:

Energy Consumption: Monitoring and reducing energy consumption in data centres, offices, and other IT infrastructure. This can include metrics such as kilowatt-hours (kWh) of electricity used, carbon emissions associated with energy usage, and energy efficiency improvements over time.

Carbon Footprint: Calculating and reducing the organization’s overall carbon footprint, including emissions from IT operations, supply chain activities, and employee commuting. CIOs may track metrics such as metric tons of CO2 emissions or carbon intensity per unit of revenue or output.

Waste Reduction: Implementing measures to reduce electronic waste (e-waste) through responsible disposal, recycling, and refurbishment of IT equipment. Metrics might include the amount of e-waste recycled, percentage of recycled materials in IT products, and initiatives to extend the lifespan of hardware through upgrades and maintenance.

Virtualization and Cloud Effficiency: Increasing the efficiency of IT infrastructure through server virtualization, consolidation, and migration to cloud computing platforms. Metrics could include server utilization rates, virtual machine density, and energy savings achieved through cloud adoption.

Telecommuting and Remote Work: Promoting telecommuting and remote work to reduce the environmental impact of commuting and office space usage. Metrics might include the percentage of employees telecommuting, reduction in office space requirements, and associated energy and emissions savings.

Supply Chain Sustainability: Collaborating with vendors and suppliers to promote sustainable practices throughout the supply chain. Metrics could include supplier diversity, ethical sourcing initiatives, and reductions in the environmental impact of purchased goods and services.

Renewable Energy Adoption: Increasing the use of renewable energy sources such as solar and wind power to meet the organization’s electricity needs. Metrics might include the percentage of energy sourced from renewables, investments in renewable energy projects, and associated reductions in greenhouse gas emissions.

Green IT Purchasing: Prioritizing the purchase of energy-efficient IT equipment, electronics with eco-label certifications, and products designed for easy recycling and disassembly. Metrics could include the percentage of IT budget spent on green products, energy efficiency ratings of purchased equipment, and lifecycle assessments of IT products.

Employee Awareness and Engagement: Educating employees about sustainability issues and encouraging behaviour changes to reduce environmental impact. Metrics might include employee participation in sustainability programs, feedback on green initiatives, and recognition for sustainability achievements.

These are just a few examples of the metrics that CIOs and IT leaders might track to support sustainability goals within their organizations. The specific metrics chosen will depend on factors such as the organization’s industry, size, geographic location, and strategic priorities.

However, it is important to distinguish between which partners you work with can enable all of these and which ones will limit your ability to deliver these. Here we outline the need to differentiate between a ‘Consumption’ partner and a ‘Sustainability’ partner. As a sustainability partner we might ask the following questions around achieving those KPI’s when only working with the OEM’s:

• Always Buying New Hardware: If organizations are mandated to always buy new hardware from manufacturers, it can hinder sustainability efforts. New hardware purchases contribute to increased electronic waste (e-waste) and carbon emissions associated with manufacturing, transportation, and disposal of old equipment. Encouraging practices such as refurbishing, upgrading, or extending the lifespan of existing hardware can help mitigate these issues.
• New Hardware Doesn’t Always Deliver Power Savings: Despite advancements in technology, not all new hardware necessarily delivers significant power savings compared to older models. In some cases, newer equipment may even consume more energy due to higher performance capabilities or inefficient design. Without careful consideration of energy efficiency metrics during procurement, organizations may inadvertently increase their energy consumption and carbon footprint.
• Carbon Footprint of Manufacturing New Hardware: The manufacturing process of new hardware typically involves resource extraction, raw material processing, assembly, and transportation, all of which contribute to carbon emissions. This carbon footprint can be substantial, especially for complex electronic devices. Organizations need to consider the environmental impact of manufacturing when making procurement decisions and explore options to minimize emissions, such as choosing suppliers with sustainable practices or opting for refurbished equipment.
• Unfavourable Practices in Disposal of Old Hardware:   Improper disposal of old hardware improper disposal of old hardware,such as landfilling or incineration, can result in environmental pollution and health hazards due to the release of toxic substances. Additionally, the disposal process often involves energy-intensive recycling methods. Encouraging responsible e-waste management practices, such as recycling and refurbishment, can help mitigate these negative impacts and promote circular economy principles. 

   

  5. Footprint of E-Waste: The growing volume of e-waste poses significant environmental and health challenges globally. E-waste contains hazardous materials such as lead, mercury, and brominated flame retardants, which can leach into soil and water if not properly managed. Addressing the e-waste footprint requires comprehensive policies and infrastructure for collection, recycling, and safe disposal, as well as promoting product design for disassembly and recycling.

  6. Lack of Transparency in Supply Chain: The lack of transparency in the supply chain of raw materials for manufacturing hardware makes it difficult for organizations to assess the environmental and social impacts associated with their products. Without visibility into suppliers’ practices, it’s challenging to ensure ethical sourcing, minimize environmental degradation, and prevent human rights abuses. Implementing supply chain transparency initiatives and engaging with suppliers to improve sustainability performance are essential steps in addressing this issue.

   In summary, achieving sustainability milestones in IT hardware procurement and management requires a holistic approach that considers the entire lifecycle of products, from manufacturing to end-of-life disposal. It involves balancing factors such as energy efficiency, carbon emissions, e-waste management, and supply chain transparency to minimize environmental impact and promote sustainable practices.

Checklist For Evaluating Your Sustainability Partners:

Hardware Redistribution:

• Does the partner offer solutions for repurposing and redistributing still- functional hardware?
• Are there processes in place to extend the lifespan of IT assets and minimize waste?
• Can the partner provide evidence of their commitment to circular economy principles?

Circular Procurement Models:

• Does the partner prioritize refurbished or remanufactured hardware over new purchases?
• Are there mechanisms for tracking the environmental impact and resource conservation associated with procurement decisions?

Third-Party Refurbishment Services:

• Does the partner offer third-party refurbishment services as an alternative to OEM-centric support models?
• Are there quality assurance measures in place to ensure the reliability and performance of refurbished hardware?
• Can the partner provide references or case studies showcasing successful refurbishment projects?

Asset Recovery Programs:

• Does the partner offer asset recovery programs for extracting value from retired hardware?
• Are there options for refurbishment, resale, or responsible recycling of end-of-life assets?
• Can the partner assist with logistics and compliance requirements for asset recovery and disposal?

Unlock Sustainable IT with Recirc IT:

Recirc IT offers comprehensive solutions to address the challenges of sustainable IT hardware management. Our commitment to circular economy principles, coupled with robust refurbishment and asset recovery programs, enables organizations to minimize waste, reduce costs, and enhance environmental stewardship. Reach out to us today to learn how Recirc IT can help your organization navigate the transition to sustainable IT practices.