Articles
What does circular economy mean in the IT world?
Tuulia Virhiä

The circular economy always includes raw materials. If you don't talk about raw materials, then you don't understand the circular economy.
In a circular economy, we always take into account which materials are acquired, why, and how we can extend their lifespans. The most important thing is to finally return the raw material to the cycle, where new raw materials and products can be obtained.
The circular economy is not just a repetition of a single small thing; it is a complete package. If the whole package is not understood, then we cannot talk about the circular economy either.
But what does circular economy mean in the IT world?
Purchasing IT equipment
When purchasing devices, organisations should make a conscious decision about, for example, the amount of recyclable materials used in the products they buy. Or if the devices should be purchased so that they already contain recycled materials. Or what the CO₂ emissions of the devices are.
Some criteria would be good; for example, responsibility and circular economy criteria should already be part of that procurement process. In this case, the decision is made to purchase devices that will last a long time and can eventually be recycled into raw materials.
In this case, the first choice has already been made to join the circular economy.
The lifetime and extension of the lifetime of IT equipment
Maximising the lifespan of a device within its initial deployment is key to a functioning circular economy. This way, the device's lifetime can be optimised with technology.
IT can support this by monitoring the device's physical condition. The lifespan of devices can be extended through effective remote management, maintenance, and a general understanding of what is happening in those devices.
SwanIT's services are specifically designed to extend device lifespans, helping the company save large sums of money.
Raw materials and recycling
If the device changes hands within the organisation, the circular economy can still be implemented as long as the organisation ensures it is recycled. But if the device is sold to a place where it is not known how it will be processed to its end, then it is no longer a circular economy.
The most effective way is for the organisation to, for example, rent out the device as a service, with the device included in the circular economy promise. That is, whenever the device's ownership or location changes, there is a high risk that the circular economy will end.
The device can, of course, be recycled from one organisation to another. As long as we ensure the device ends up in the third and final step of our IT circular economy definition (i.e., raw materials and recycling), that's fine.
The device should therefore end up in the service of an operator, where it is dismantled, its raw materials are recovered, and those materials are used industrially in the form of new products.
These new products do not have to be just IT equipment; all collected material reduces the need for new raw materials worldwide. This way, mining growth can be slowed, as mining has a significant impact on environmental and human rights issues.
Concrete benefits of the circular economy
Promoting human rights and environmental values.
An organisation's sustainability figures are already known if, for example, CO₂ emissions and recycling rates have been taken into account.
The organisation needs to buy less, which means that significantly less money is spent on devices.
In addition to money, time is also saved. The need for constant device switching is avoided, as tasks can be handled on a data-driven, needs-based, and flexible basis.
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