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IT Consumption can’t be stopped, but it can be more sustainable

Written by Simon Young, Director and VP Sales, UK and Ireland for CHG-MERIDIAN

UK business leaders face a triple-headed challenge. As well as dealing with a challenging economy, and environmental pressure from regulators and customers to be more sustainable, they must take a cost-conscious approach and stay ahead of their competitors.

Digital transformation, which typically involves vast swathes of new IT kit, is crucial to business success, with analyst Gartner saying global IT spending will total $4.4 trillion in 2022, an increase of 4% on 2021. However, kit refreshes also create environmental strain. Consultant Capgemini has found that 79% of consumers are changing their purchase preferences based on social responsibility, inclusiveness or environmental impact.

For key decision makers in IT, sustainability and procurement, the premise is clear – give the business the hardware it needs to succeed, but do so in a way that’s cost effective and environmentally sustainable. That mix sounds tough to achieve but by building strong partnerships, you can manage technology asset rollouts effectively and balance responsibility for sustainability, cost control and competitiveness.

Becoming part of the circular economy

Business leaders aiming to maintain productivity in a sustainable manner must do two things: they must focus on managing the total cost of ownership (TCO) of technology used in the business and pass on old kit sustainably as part of the circular economy, which involves recycling existing materials and products for as long as possible.

The key to success is helping your organisation embrace this dual responsibility head-on. No executive can meet this target by working in isolation. They must find effective techniques to manage the TCO of IT assets and to deal with these resources in an environmentally sensitive manner.

Thankfully, that’s where CHG-MERIDIAN can help you. We use our 40 years of experience to help our 12,000 customers save time and money. Our expertise covers the full lifecycle of equipment from consulting and procurement, to finance, deployment and finally the deletion of data and remarketing of the equipment for a second life.

The circular economy lies at the heart of our business model. Just like your organisation is focused on its environmental responsibilities, we too focus on sustainable and profitable growth. Yes, we want to make your business more successful, but we want to do that in a way that benefits society as a whole.

The shift in thinking comes from looking at the entire lifecycle of IT refreshes from procurement and use, to data deletion, refurbishing, and remarketing. The circular economy approach is a proven financially and environmentally sensible way to do business.

By only procuring and financing the equipment that it needs, a business can ensure efficiency and conserve resources. And through using financing models, rather than tying up an organisation’s capital, these lifecycle models provide cash flow for investment in further innovation. At the end of the lifecycle, the equipment is handed back to the provider, who wipes it and reuses it. The total cost of ownership (TCO) is lower for organisations and the equipment you buy can be put to sustainable use afterwards.

CHG-MERIDIAN finances big tech refresh projects for enterprise, public sector, healthcare and industrial organisations. In fact, the company generated €1.7 billion through lease deals across IT, industrial technology and healthcare technology during 2021.

Rather than tying up capital, these lifecycle models provide cash flow for investment in further innovation. At the end of the lifecycle, we can take back the equipment, wipe it and reuse it. The total cost of ownership (TCO) is lower for organisations and the equipment you buy can be put to sustainable use afterwards. What’s more, we can manage this process in a carbon-neutral manner through carbonZER0, our carbon-offsetting lease option.

All our work is underpinned by our asset and communication management system, TESMA™. The software provides a central database for all key business information related to your organisation’s technological assets and is available in real time. Whether it’s through our self-service portal or our dedicated app, employers can use TESMA to account for where all assets are globally and employees can register any maintenance issues, or request upgrades which are resolved ASAP.

Helping businesses today and tomorrow

Let’s be clear: the environmental and economic challenges all our organisations face are only going to keep getting bigger. Constant change will be very much the new normal.

The past two years highlighted the importance of digital transformation. Organisations that grabbed innovation were able to thrive even during the pandemic. Boards saw how technology keeps businesses productive in the most challenging circumstances – and now that they want even more.

This demand for change creates new pressures for decision makers. The pace of digital transformation will continue to quicken and the requirements to refresh kit will increase. But with an independent partner such as CHG-MERIDIAN and a class-leading toolset like TESMA, your organisation will be able to keep track of how its assets are being used and exploited effectively and sustainably.

Some business leaders have already made this shift. These pioneering executives and their organisations are working with CHG-MERIDIAN to become part of the circular economy:

  • PISCEU, the division of Panasonic Business responsible for internal IT infrastruc­ture, leases more than 7,300 assets including laptops, monitors, smart­ phones, servers, and large printers. The business uses TESMA to collect commercial and technical data and monitor demand and costs at all times.
  • Coca-Cola HBC Austria has a wide-­ranging partnership with CHG-MERIDIAN that covers the firm’s entire IT infrastructure, which includes carbon-­neutral leasing of IT equipment and assets being refurbished at the end of the lease term and given a second life.
  • Lille Uni­versity Hospital is home to Europe’s first intravenous chemotherapy robot, which has been financed through CHG-MERIDIAN. This support includes advice on the selection of suitable equipment and contract negotiations with the American manufacturer.

Conclusion: Sustainable growth now

UK organisations must find a way to deliver sustainable growth while keeping costs in check. It’s a tough combination to satisfy, but smart business leaders partner with an independent expert that ensures responsible growth is at the heart of their organisation’s objectives.

CHG-MERIDIAN has decades of experience in addressing these challenges. We’ve helped clients weather financial crises through the 1980s, 90s, 2000s and throughout the pandemic and are helping them deal with today’s challenging economy. That gives us a unique experience in financing major technology refreshes for companies and we’ve also seen how important it is for companies to remain competitive and find ways to invest back into their business, while protecting the bottom line.