By Nick Stapleton
IN 2019, the Scottish Government became the first home nation to declare a climate emergency in a bid to drive down emissions and positively contribute to the global climate setting agenda.
As part of this, the circular economy was put front and centre of the country’s response, with the aim of encouraging more people and businesses to recycle, reuse or refurbish to help reduce the amount of waste generated and sent to landfill.
Whilst reusing and recycling have important roles to play in wider society, in IT terms recycling is still an energy-intensive process and reusing (not refurbishing) machines can mean a sacrifice on quality, speed and reliability.
The refurbished enterprise IT market, therefore, has the potential to greatly enhance and contribute to the country’s efforts to become net zero by 2045. Over the past two decades, the industry has matured and there are far higher professional standards than when it was in its relative infancy at the turn of the millennium, including warranties as good as buying new.
However, despite the gains the sector has made during this time, greater support is needed to change perceptions and encourage a positive change in consumer and business behaviour, encouraging them to think refurbished first when choosing new or upgrading IT equipment. This should start with schools, councils, and other publicly-funded organisations to help reduce the ease on already-stretched budgets.
We’ve seen first-hand how thousands of businesses have benefited from refurbished IT equipment and this is evidenced by how our headcount has more than doubled in the past two years.
There’s also no doubt that the move to remote working, coupled with a global shortage of semi-conductors and supply chain challenges, have made the circular economy more attractive to businesses looking to invest and stay ahead during the pandemic – especially when also set against the current shipping delays being seen globally.
As these issues start to dissipate, government incentives and other subsidies will be key to ensuring these gains keep Scotland’s economy moving forward, whilst aiding our transition towards a fully net zero economy.
In December’s budget, the Scottish Government allocated £43m towards supporting this sector, but as one of UK’s leading suppliers of refurbished enterprise IT equipment, we’ve seen very little action or commitment as to how this will incentivise companies to look towards refurbished to help remove emissions from their supply chain.
The UK Government, for its part, should also step up and back the sector. A good place to start would be to update the super-deduction allowance – which lets British business claim back up to 25p for every £1 they invest in "qualifying" machinery and equipment. Currently certain expenditure isn’t included, and this includes refurbished machinery. Given the crucial role it has in helping businesses access lower-cost, quality machinery, as well as supporting a home-grown workforce, this needs to change.
There is, of course, a place and requirement for new equipment, but if Scotland and the UK want to get serious on supporting the circular economy, refurbished needs to be prioritised and support given to businesses to enable more carbon-friendly investment decisions.
Nick Stapleton is founder and MD, ETB Technologies
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