Corporate sustainability reporting

The European Union’s Corporate Sustainability Reporting Direction (CSRD) took effect in January 2023. The directive requires companies to disclose detailed reports on Scope 1, 2 and 3 emissions as outlined by the 12 European Sustainability Reporting Standards (ESRS). Currently, the directive applies to companies operating in Europe and US-based companies with subsidiaries in Europe that meet specific criteria. Although sharing detailed information regarding carbon emissions and sustainability initiatives isn’t required across the board, it’s a step in the direction many countries are heading. 

Now is the time for companies to understand their carbon footprint, sustainability goals and potential improvements to prepare for what’s to come. One of the many ways to do so is by adopting circular economy principles. 

What is a circular economy?

Circular economy is the practice of slowing down the production and consumption of new materials by reusing, repairing and extending the life of existing materials. Decreasing the creation and consumption of new materials reduces waste, use of natural resources and greenhouse gas emissions (GHG). 

In addition to adopting a circular strategy, understanding carbon emissions scopes and what falls into each category is equally important.

What are carbon emission scopes?

The Greenhouse Gas Protocol established scopes in 2001 to categorize the carbon emissions companies create in each area of their supply chain. GHG Protocol examines Scopes 1, 2 and 3. 

The environmental impact of data center equipment

Understanding the impact of data center equipment should include a holistic view of the manufacture, transport, use and end of life (EOL) phases. The image below illustrates the typical life cycle of data center hardware from manufacturing to end of life.  

Manufacture

The manufacture phase covers every step, from sourcing and mining materials to the product’s final assembly. Calculating specifics related to the manufacture phase is challenging due to the incredibly complex IT hardware value chain. One of the many factors contributing to the carbon output in this phase includes mining rare materials, such as lanthanum, cerium and europium, which are often located worldwide. In addition to mining rare metals, equipment requires specialized machines and facilities to assemble the entire system, including parts. 

Transport

This phase includes distribution from the assembly site to the product’s final location. 

Use

The longest life cycle phase represents the product’s operational life. This phase is measured by its electricity consumption and cooling. The use phase also includes the product’s installation, service and maintenance over time. 

End of life (EOL)

This phase includes the disassembly, recycling with the help of IT Asset Disposition (ITAD) and other activities once hardware has reached the end of its useful life. 

Carbon emissions created in each phase of the life cycle

The image below shows the estimated carbon emissions generated from each life cycle phase for various data center hardware, including servers, traditional disks and SSDs. 

You’ll notice the carbon emissions generated in the manufacture and use phases are comparable. Although this doesn’t provide a solid conclusion regarding the climate impact of data center equipment, it shows the use phase isn’t the only contributor to the carbon footprint of hardware.  

How to address carbon avoidance in your data center

When it comes to your data center equipment, there are two scenarios to consider when prioritizing carbon avoidance. 

It’s important to note that both scenarios generate carbon emissions, but the takeaway is the difference in CO2e generated with both options. Extending equipment life cycles postpones and decreases demand for the development of new hardware, in turn decreasing carbon emissions.  

The next step on your data center sustainability journey

Prioritizing data center sustainability and reducing carbon emissions is a multifaceted approach that involves addressing each area of the product life cycle. One of the most tangible and impactful strategies to address carbon reduction is leveraging circular economy strategies, extending hardware refresh cycles and gaining a holistic view of your data center emissions. 

What is data destruction?

Data destruction is the process of disposing of and ensuring vital data is irretrievable.

Why is data destruction important?

Just because hardware with sensitive data is recycled doesn’t mean the files are magically unretrievable. Below are several reasons why secure data disposal is essential: 

• Protects against cyberattacks, data breaches, etc.
• Upholds your company’s reputation.
• Supports legal and compliance requirements.

Common data destruction methods

There are several methods for secure data destruction; however, all techniques aim to destroy data, so it doesn’t end up in the wrong hands.

Data destruction standards and compliance

ITAD specialists follow regulations and policies for secure data destruction. The standards vary between country and region, but all aim to establish safe and compliant data destruction practices.

The most common data destruction standards in North America and Europe:

• United States Department of Defense: DoD 5220.22-M 
• United States Department of Commerce: NIST SP 800:88

As you can imagine, it’s critical to have a reputable and experienced provider assist with your data destruction needs. Make sure to verify their experience, methods, certificate of data destruction, guidelines, security measures and more. Partnering with a reputable vendor for data disposal will protect your organization from potential threats or vulnerabilities.

What does ITAD stand for?

ITAD is an industry term used for IT Asset Disposition. This practice includes safe and responsible disposal of unused or unwanted IT equipment. When disposing of IT hardware, organizations must consider the security and environmental impacts. ITAD ensures that company data is wiped safely and properly destroyed or recycled. Companies can handle ITAD services in-house or work alongside an ITAD provider, depending on their needs.

What IT assets can be recycled through ITAD services?

Almost any device can be recycled through ITAD, including servers, storage, computers, smartphones, tablets, etc.

Why is ITAD important?

As technology evolves, so does business demand and hardware requirements. As you can imagine, the reliance on electronics has dramatically impacted our environment through increased e-waste. When IT equipment enters landfills, it can harm the surrounding environment due to toxins, including mercury, lead, lithium and more. In addition to safeguarding our environment, ITAD has several other benefits.

What to look for in an ITAD partner

Since the ITAD process is complex, multi-faceted and often includes sensitive information, you’ll want to verify the following to select a reliable and secure provider:

• Demonstrated track record and client testimonials
• Appropriate accreditations and certifications, such as R2 and ISO
• Compliance with industry standards and security regulations
• Ability to customize services to meet your specific needs
• Transparency with its disposal and recycling processes
• Properly trained and certified field engineers and technicians

Partnering with a reputable ITAD vendor will protect your organization for potential threats, help you advance sustainability goals and promote a circular economy.