Improving sustainability with refurbished technology

Stephen Wise at Alchemy outlines a new approach to employee technology that will help save the planet as well as improving the bottom line

 

It’s a question that’s dogged all of us for as long as devices have been at the centre of our lives: what should we do with our unused tech when we upgrade? And for many of us the indecisive answer is simply to store it away, neither putting it to use or discarding it entirely. 

 

The same is true for businesses just as it is for individual consumers, but of course on something of a different scale. And that means there’s a large number of organisations currently storing hordes of perfectly functional but unused laptops and smartphones in cupboards. The alternative is that they’re throwing them away altogether.

 

In 2022 alone, the world produced 50 million tonnes of e-waste – that’s equivalent to the weight of 5,000 Eiffel Towers. Discarded devices often then leak hazardous substances that pollute the environment and threaten wildlife and human health.

 

But so much damage happens before these devices even hit the scrapheap. The bulk of a gadget’s carbon footprint comes from its manufacturing process. A new smartphone creates approximately 64kg of CO2 emissions and requires 244kg of newly mined raw materials and 76,000 litres of water. And when disposed of, the smartphone contributes to 200g of e-waste. 

 

When we ditch working tech for brand new replacements, the environment suffers.

 

The newest tech also comes at a cost – sometimes significant. We recently conducted a survey of over 4,000 chief technology officers (CTOs) and other business leaders and executives with authority over tech-buying decisions, to see how they’re thinking when it comes to buying device tech.

 

We could see from the data that tech costs are rising. The average business now spends just over $1,000 per employee per year on tech – a number which has grown considerably since the pandemic. 

 

There’s a growing need for all of us to help to decarbonise industry, to slow the pace of climate change and develop circular practices that make our lifestyles more sustainable.

 

Fortunately, there’s a way for businesses to reduce their impact on the planet while still acquiring quality tech that upgrades their current stack – at a fraction of the price of new – and makes cash on their old devices at the same time.

 

Benefits of refurbished technology

One of the reasons for buying new is the guarantee that devices are going to work like they are supposed to – and that they’re secure. Our research revealed almost half of CTOs (44%) chose a brand based on perceived reliability first, while 41% say they’re driven primarily by value for money.

 

In the UK, the average spend per year rises to nearly $2,000 per person vs the $1,000 global average. For a company of 250 people, that’s half a million dollars spent each year on new tech.

So, a better solution lies in buying refurbished technology, which offers savings as great as 70% compared the price of buying new. The money saved can be diverted elsewhere; from growth areas like marketing, training, or new hires, to scaling up operations without bloating IT costs. 

 

As well as these upfront savings, there may be other potential financial advantages when buying refurbished, such as tax benefits. These benefits are likely to be specific to where your business is based, so it’s best to do some research before you buy, but they could include certain deductions or credits. 

 

Trading in to trade up

Another area in which businesses can save – or even add – money to budgets is through trading in unused devices. Currently, 62% of companies simply dispose of or let employees keep useable devices, foregoing serious value and leaving a potential security risk due to the lack of oversight of proper disposal. 

 

The best way to know how much you could make trading in your old devices is with a valuation of your tech estate, so you know exactly how much your devices are worth. Get a valuation of your tech stack. You may be  surprised: this can be as much as 30% of your initial purchase value.

 

By trading them in, you can reinvest the savings into other parts of your business whilst also getting peace of mind that your devices will receive a complete data wipe. 

 

It’s a win-win – your business gets a cash injection while avoiding the environmental impact of discarding still-functional tech. And, if you then buy refurbished devices to replace your old ones, you’ll get reliability and performance equal to brand new models – but at a fraction of the cost. 

 

Demonstrating value

Show your business the value you can unlock through refurbed tech by following these steps:

• Add up the cost savings: Compare the outlay of buying refurbished technology with brand new to paint a clear picture of the money you’re saving. 
• Reinvest your trade-in budget: Highlight the potential cash flow you can reclaim from trade-in programs, which can be reinvested to further boost your tech budget.
• Maximise the financial benefits: Make sure your company knows about the potential tax advantages and cash from trade-in programs they could receive - these additional advantages can play a big part in boosting budgets.  

---

 

Stephen Wise is Global Marketing Director at Alchemy, the first and only company certifying CO2 savings for refurbished tech, setting new standards in sustainable innovation by accurately measuring the impact of refurbed smartphones, tablets, laptops and wearables across their entire lifecycle

 

Main image courtesy of iStockPhoto.com and Lorado