ITAM and Sustainability: The role of IT Asset Disposition (ITAD)

Here are some facts to shake you up and get ready for this blog:  

• The UN has written early in 2024 that training an AI at the computing level of a human brain for one year can cost 126,000 litres of water, while an average data center uses 300,000 gallons of water a day to keep cool, roughly equivalent to water use in 100,000 homes, Lenovo underlines. Fortune has reported that OpenAI’s ChatGPT consumes a bottle of water to write a 100-word email! 
• Small IT equipment, mostly laptops and phones, produce 11 billion pounds of global e-waste, PIRG finds.    

You get the picture. 

As businesses push forward with digital transformation, they’re also generating jaw-dropping amounts of energy waste.  

Now, everything's not lost, and there are still things that businesses can do to reduce their environmental impact without dropping their business efficiency. That is, IT Asset Management with a green agenda, or as widely referred, a Green IT approach to ITAM that encourages managing IT assets in smarter ways to prolong their lifespan and dispose of them in a responsible way; all for making IT operations more sustainable, cost-effective, and future-proof.  

Let’s discover this further in this article. We’ll give space to UN’s 17 Global Goals and how that applies to ITAM later in the text.

What is Green IT?  

Green IT is all about making technology work in favor of the environment rather than against it. It’s a mindset shift from treating IT equipment as disposable to seeing it as a long-term investment that must be managed responsibly. This means choosing energy-efficient devices, choosing smarter ways of managing workloads, and embracing cloud computing to reduce the need for excessive hardware. 

Green IT covers the full lifecycle of managing IT assets. From the moment a laptop or server is acquired, a green approach to ITAM ensures it’s used effectively, maintained properly, and disposed of in a way that doesn’t contribute to e-waste mountains. 

Sustainable businesses that take Green IT seriously will win in the long run both in terms of brand value and revenue; as well as lower their carbon footprints, reduce waste, and save money by making their assets last longer.

Why does Green IT Revolution matter?

Businesses - especially those in the EU that abide by ESG - are no longer just asked to churn out faster processors and bigger storage capacities; they’re obliged to do so responsibly in terms of corporate social responsibility, environmental impact, and energy costs.  

That means manufacturing devices that use fewer rare materials, designing hardware that’s easier to repair, and ensuring that IT infrastructure doesn’t use unnecessary amounts of energy. The shift to renewable-powered data centers and energy-efficient hardware is picking up pace, but the role of ITAM in ensuring organizations make the most out of these changes is crucial.  

So, buying sustainable tech is one thing, and using it wisely is another.  

The plus side is that ITAM helps cut down on costs significantly. That happens by slashing unnecessary spending and ensuring that IT assets are used to their fullest potential before being replaced. Together with that, extending the lifespan of devices, reducing redundant purchases, and optimizing software licenses all contribute to major cost savings. 

Demonstrating strong Green IT practices is also a competitive advantage. Companies looking for partners and vendors are increasingly favoring those with solid ESG credentials.

ITAM’s Role in Sustainability

Think of ITAM as the backbone of sustainable IT. Without proper asset management, businesses waste money on unnecessary purchases, allow old devices to collect dust in storage rooms, and end up sending usable equipment to landfills prematurely. ITAM ensures that every piece of tech is accounted for, optimized, and eventually retired responsibly. 

So, in a nutshell, to make sure tech is actually being used in the most efficient way possible. 

One of the most impactful aspects of ITAM is IT Asset Disposition (ITAD). 

Think of practicing ITAD like this: Once IT assets reach the end of their useful life within an organization, they’re either refurbished and resold, donated for further use, or recycled properly to extract valuable materials without harming the environment. 

Considering the regulations tightening around e-waste disposal, having a structured ITAD process is indeed essential.

How ITAM Contributes to ESG

In its core, beyond creating a paperless workplace, there are many ways that ITAM practices contribute to ESG in terms of making the best use of existing IT assets, and also being conscious and selective while purchasing new ones. 

Here, we’ll discuss five ways ITAM contributes to ESG:  

1. Responsible Purchasing: ITAM ensures organizations buy only what is really needed; as it tracks the usage and status of existing assets in real-time. This way, businesses prevent overpurchasing and underconsumption; and you never see new laptops waiting to be used and collecting dust on storage shelves. This practice helps reduce environmental footprint as well.
    
2. Maximizing Asset Utilization: More than 89% of organizations recycle less than 10% of their IT hardware. Instead of tossing devices after an employee leaves, ITAM supports reassigning equipment to new hires and extends the lifecycle of IT assets. This reduces electronic waste and prevents premature disposal of functional devices to a considerable degree. (If the asset is worn down after a previous employee has used it for some time, you should also not skip the option of repairing it. Or, if the asset is no longer fit for use, make sure to dispose it in an environmentally-friendly way.)
   
   
3. Tracking Failures and Lifespan: A key aspect of IT asset lifecycle management best practices is tracking asset performance. ITAM helps businesses monitor device reliability, oversee which assets outlive their warranties, and decide which brands or models offer better lifetime value. This data helps you make informed procurement decisions and produce less e-waste.
   
   
4. Managing Shared Assets: Some assets aren’t tied to a single individual but are used by multiple employees (think about tablets that are used during conferences as hardware, or subscriptions to services that are shared as a team). ITAM provides clear oversight on shared IT resources and helps minimize additional purchases. This contributes to a more resource-efficient and environmentally friendly approach to IT.
   
   
5. Monitoring Consumption and Costs: Lastly, ITAM helps organizations track usage patterns by employees and associated costs to identify which assets are underutilized. This opens doors to redistribute resources instead of purchasing new equipment, and helps reduce the environmental burden caused by unnecessary manufacturing and shipping of IT hardware.

ESG Audits and ITAM: How Does It Work?  

More companies are being held accountable for their environmental and social impact, mostly through ‘ESG audits’, a process that evaluates the adherence to environmental, social, and governance standards of a business. 

According to the EU Corporate Sustainability Reporting Directive (CSRD), non-EU companies (31% based in the U.S.A.) need to publicly report their sustainability practices and work toward reducing their environmental footprint). ITAM plays a crucial role here because IT assets make up a significant chunk of a company’s environmental footprint.

An ESG audit might examine how well an organization tracks its IT assets, whether it follows responsible disposal practices, and how energy-efficient its IT infrastructure is. 

Businesses that incorporate ITAM into their ESG reporting prove their commitment to sustainability and uncover new opportunities to optimize operations. 

Let’s face it, you probably don’t want to be the company that gets called out for contributing to e-waste problems when there are clear solutions available, so it is important to start thinking about how to approach this in a smarter way.

Making ITAM a Sustainability Powerhouse 

So, how can businesses make ITAM a driver of sustainability? Instead of seeing IT assets as disposable tools, you should view them as long-term investments that require thoughtful management. Here, we’ll follow the guidance provided by UN’s 17 Global Goals directly. 

Article 12 on responsible consumption and production says that we should “encourage companies to adopt sustainable practices and sustainable reporting” (12.6) and “promote sustainable public procurement practices” (12.7).   

Here’s what UN recommends that is relevant and applicable to ITAM:  

• Do some research and buy from companies you know have sustainable practices and don’t harm the environment.  
• Choose reusable products and reduce plastic waste.  
• Buy second-hand whenever you can.
• Buy (user-) repairable devices with long warranties and support after the last sale.
• In the absence of support from the original manufacturer, seek support from third party maintainers.  
• Dispose of assets using a specialist; independent parties tend to score highly for reuse or avoiding landfill.

Together with that, here’s what we recommend for a greener approach to ITAM:  

• Do not think of ITAM only as hardware. Optimize your software to reduce unnecessary resource usage as well. Think about implementing power-saving settings, optimize background processes and regularly update your software. 
• Integrate sustainability into procurement. Work with vendors that prioritize ethical sourcing, recyclable materials, and energy-efficient manufacturing processes. 
• Track and report sustainability metrics. Use ITAM data to monitor energy usage, asset utilization, and disposal outcomes to continuously improve sustainability efforts.

P.S. IT asset managers based in the EU should also factor in the Electronics and ICT remarks in the Circular Economy Action plan, as further legislation in terms of product disposability and tech waste are expected to support the Green Deal.

Conclusion and Key Takeaways  

Tightening regulations, ESG reporting mandates, and growing consumer expectations mean businesses can’t afford to ignore going greener in their IT operations. Brands that embed sustainability into their ITAM strategies will eventually notice that they operate more efficiently and build stronger reputations, as well as stay compliant. 

Looking for IT Asset Management that drives sustainability? Let ALVAO help your company go greener—get in touch today to see how!

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Smart, sustainable IT practices benefit both the planet and the bottom line. The choice is simple: go green now or get left behind.