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*Per Annette Zimmermann

Around 80% of hardware suppliers' products will be linked to circular initiatives by 2030, a rate well above the 20% expected to be registered in 2023. The projection is from Gartner, the world's leading research and consultancy company, which also estimates that rManufacturing and reusing end-of-life devices, rather than ending up in a landfill, will quickly become a priority for most of the world's companies. In parallel, the Generative Artificial Intelligence can improve IT sustainability and hardware vendors can take a number of initiatives to further reduce the environmental impact of  end user devices.

The hardware industry is transitioning to a more circular economy to address the ecological footprint of its products. Each supplier has a different focus when it comes to making their product more sustainable. For example, some are highly focused on packaging and have achieved 100% of recycled material. Other vendors focus on the product itself and increase the portion of certified recycled materials in their devices.

Additionally, suppliers are adopting a circular supply chain that consists of collecting, reusing/extending shelf life, as well as repairing, restoring, refurbishing and recycling. Certainly, much more can still be done. For example, suppliers can accelerate the transition to a circular supply chain by setting relevant key performance indicators (KPIs), such as specific targets for recycled material in new products. They can also promote the generation and storage of renewable energy (such as biobatteries) to reduce the environmental and social impact of extracting and processing raw materials.

Manufacturing real circular products requires system change rather than marginal product improvements. To truly move to a circular economy in IT, hardware vendors must transition from an eco-efficient product approach to a broader eco-efficiency proposition. The concept of eco-efficiency encompasses the optimization of an inherently new and circular system. It’s about retaining and extending the value of products for as long as possible.

Several hardware vendors are already doing this. However, more vendors must prioritize designing products that include recycled components and renewable materials that are easy to disassemble and repair to extend the life of devices. This approach will undoubtedly help increase the percentage of suppliers’ products linked to circular initiatives.

In this environment, Generative Artificial Intelligence can help improve the circular economy in IT and positively impact the electronics industry in several areas. For example, in materials science, it can be used to design even more sustainable materials. Another example includes materials informatics, which consists of the application of Artificial Intelligence, Digital Twins and data analysis that improve the efficiency of materials development that ultimately reduces the impact on the environment.

The faster discovery of new materials with specific properties can play an important role in several areas, including new methods of recycling and reusing materials from existing products, and a sustainable electronics production process. We estimate that by 2025, more than 30% of new medicines and materials will be systematically discovered using generative AI techniques from scratch.

Faced with the question of whether new legislation, such as 'right to repair' initiatives and the European Union Digital Product Passport, is sufficient to reduce e-waste, I believe these legislations are a good start, but more needs to be done. Gartner estimates that IT assets represent up to 7% of global electronic waste. Therefore, it is understandable that movements such as the right to repair, a broad international effort that allows end consumers and companies to freely repair their devices in the event of mechanical or technical failure, have emerged. Several device brands have also started introducing repair programs to obtain spare parts. 

The Digital Product Passport (DPP), designed to provide consumers and companies with new recycling and remanufacturing possibilities, brings relevant information such as environmental indicators and data on durability, reusability, upgradeability and repairability. This will soon impact all consumer electronics manufacturers in the European Union. Therefore, manufacturers should act now and assess the criteria needed to comply with the DPP to ensure they capture circularity data across their entire supply chain. But this is not enough. IT leaders will also have to continually rationalize, retain and restructure the use of devices, from acquisition to disposal, in ways that preserve the planet, engage employees and support the business.

* Annette Zimmermann, analyst and vice president at Gartner

Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies

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