The biggest challenges facing Channel stakeholders include performance concerns, as there’s an ongoing desire for the latest technology and a perception that refurbished tech is inferior. Revenue is also a factor, as companies profit from selling new equipment and need to adapt to offering sustainable services.
Education remains crucial, as there’s a need for a significant shift in consumer behavior from buying new to embracing the circular economy and considering the full product lifecycle, including disposal.
Increased environmental pressures and government legislation are driving demand for Channel stakeholders to explore new ways they can reduce their carbon footprint and tackle e-waste. With the Technology Channel placing sustainability near the top of its list of priorities, businesses are responding by automating roles, utilizing electric vehicles for logistics and reducing e-waste headed for landfills.
Channel operators should be adopting the ‘Repair, Rework, Reuse’ model, which aims to extend IT hardware lifecycles and reduce the carbon footprint of technology wherever possible. Through the development and implementation of robust sustainability initiatives, vendors, distributors, resellers and MSPs can play a leading role in helping to create a more circular economy and minimize e-waste.
Deborah Johnson
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What key strategies, policies and procedures should be adopted to meet net zero targets?
Developing a robust strategy is essential for Channel businesses to bolster their net zero, carbon offsetting and sustainability goals. Companies that aim to create a comprehensive e-waste strategy must align their initiatives with environmental regulations and industry standards while striving to minimize the impact of their operations on the environment.
To create a concise strategy, Channel organizations must analyze their current operations – from sourcing components to end-of-life disposal – to minimize waste generation at each stage of the supply chain. The importance of this was revealed in our recent Sustainability report, with 36% of respondents already implementing initiatives to become more sustainable, and a further 37% looking to roll out strategies within the next 12 months.
Businesses need to create a plan that aligns with their future growth trajectory and the impact that this will have on emissions. With that in mind, the best option is to reduce the carbon intensity of their operations by establishing reduction strategies and mobilizing infrastructure change. This can take effect across a number of areas in an organization, most predominantly in the business’ supply chain, which links back to the company’s scope 3 emissions.
Channel operators must also consider measures to extend the life of hardware beyond the typical manufacturer lifespan, whilst ensuring the necessary quality standards and warranties are met. By repairing, reworking and reusing IT hardware, organizations can also reduce their carbon footprint and that of customers , whilst reducing cost.
How can vendors build e-waste initiatives within their partner programs?
Consumers and businesses across the Channel sector are waking up to the importance of Environmental, Social and Corporate Governance (ESG) with supply chain transparency, sustainable finance and renewable energy sources and materials all key to helping industries meet their net zero, carbon offsetting and sustainability goals.
Vendors are now incorporating e-waste initiatives in processes to help streamline operations and boost efficiency for Channel partners. This not only enables significant environmental savings, but also an economical one for Channel partners and their end user clients.
By delivering white label maintenance, engineering services’ solutions and break-fix maintenance, Channel vendors can enable partner organizations to benefit from cost-effective, multi-vendor hardware maintenance services. This mitigates the need to dispose of mass hardware, allowing partners to extend product life cycles and reduce their carbon footprints through dedicated platforms like EcoVadis and by creating strategies internally, like a sustainability dashboard.
How is sustainability influencing customers and purchasing decisions?
It’s not for everyone – some customers are still very focused on price. Others see sustainability as a nice to have but would not be willing to pay considerably more. However, we are starting to experience a shift for ESG credentials to form part of the tender process, up to 30% of the total scoring for a partner in some cases. Also the frequency of being asked about sustainability is increasing.
As Channel vendors continue to scale their respective operations, they must consider their ESG strategies and goals and how best to meet the demands of customers, environmental legislation and compliance. They can also improve their sustainability approach by automating roles, utilizing electric vehicles for logistics and reducing electrical and electronic waste headed for landfills.
By investing in sustainable strategies, Channel partners gain a competitive edge, enabling them to improve business growth and strengthen stakeholder and consumer relationships while adhering to their sustainability principles.
How can data be leveraged to better understand and manage problems?
For Channel firms wanting to make their supply chain more sustainable, the process of collecting and sharing data is often seen as a key challenge. However, once the hard work of data collection is done, it is hugely beneficial for evaluating an organization’s ESG performance.
Channel businesses, like many others, are relying heavily on data and analytics to make crucial business decisions. While this is seen as efficient, if decisions are being made based on data that is unreliable and inaccurate, the impact it can have could be huge. Accurate data collection is essential for tracking Scope 3 emissions, yet just 10% of the companies with under 100 employees surveyed for our research said they prioritize managing customer sustainability goals.
By leveraging digital solutions to aid visibility and transparency of both supply chains and in line with required sustainability metrics, companies can expect to deepen engagement with their customers, reduce risk and create trust with their supply chain stakeholders. Just as importantly, sustainability practices and corporate responsibility can deliver a positive impact both inside and outside of the business long term.
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