IT is Boosting Circular Economy, Says Gartner

Know How IT is Supporting and Boosting the Circular Economy, according to Gartner

The circular economy is a growing trend in the hardware industry, as vendors seek to reduce the environmental impact of their products. Gartner predicts that by 2030, circular initiatives will be linked to 80% of hardware vendors' product portfolio, up from 20% in 2023. This means that more end-of-life devices will be re-manufactured and reused, instead of ending up in landfills. Different vendors have different approaches to making their products more sustainable. For instance, some vendors focus on using 100% recycled material for their packaging. Others increase the amount of certified recycled materials in their devices.

A circular supply chain is another strategy that vendors have adopted to make their products more sustainable. This involves collecting, reusing/extending lifetimes, repairing, remanufacturing, refurbishing, and recycling end-of-life devices. However, there is still room for improvement. For instance, vendors could set relevant KPIs to measure their progress towards circularity, such as the percentage of recycled material in new products. They could also explore renewable energy sources and storage options (such as biobatteries) to minimize the environmental and social impact of raw material extraction and processing.

To achieve a real circular economy in IT, hardware vendors need to shift from a system of marginal product enhancements to a system of circular product design. This means adopting an effective product approach, which optimizes the value of the product for as long as possible. This involves designing products that use recycled components and renewable materials, and that are easy to disassemble and repair to extend device lifetimes. Some hardware vendors are already following this approach. However, more vendors should join them to increase the share of their product portfolio that is linked to circular initiatives.

Increasing Circular Economy in IT Through Generative AI:

Generative AI has a significant impact on the electronics industry in various areas. For instance, it can help design more sustainable materials in material science. Another area is materials informatics, which applies AI, digital twins, and data analytics to improve the efficiency of materials development and reduce the environmental impact. This enables the faster discovery of new materials with specific properties, which can benefit several areas, such as recycling and repurposing of existing product materials and a sustainable production process of electronics. According to our estimate, by 2025, generative AI techniques will systematically discover more than 30% of new drugs and materials, up from zero today.

Will New Laws, Like the EU Digital Product Passport (DPP), Lessen E-Waste?

There is more to be done to address the issue of e-waste, despite the new legislation such as the "right to repair" initiatives and the EU Digital Product Passport. According to Gartner's research, IT assets contribute to 7% of global e-waste. Therefore, it is not surprising that the right-to-repair movement has emerged, which is a global effort that allows end users, business users, and consumers to repair their devices in case of mechanical or technical failure. Some device brands have also launched repair programs. They either provide spare parts and guidelines for users to repair their devices, or offer self-repair phone programs where users can access links for specific types of repairs for each smartphone model that supports self-repair.

The EU will soon require consumer electronics makers to provide relevant information about their products, such as environmental indicators and information about durability, reusability, upgradability, and repairability. This information will be part of the Digital Product Passport (DPP), which aims to promote circularity in the electronics industry. Vendors need to act now and assess the criteria for the DPP, and ensure that they capture circularity data across the supply chain. However, this is not enough. IT leaders also need to rationalize, retain and restructure the use of devices from procurement through disposal in a way that benefits the planet, engages employees, and supports the business. Gartner analysts will share more insights and predictions on IT sustainability during Gartner IT Symposium/Xpo, which is the world's most important conference for CIOs and other IT executives.