12. Electronic equipment AND IT solutions

In today’s digital age, electronics play a crucial role in our daily lives. From smartphones to computers and household devices, technology is embedded in nearly every aspect of modern living. The rapid evolution of IT and digital devices has transformed the way we communicate, work, and entertain ourselves, but it has also introduced new considerations about how we manage and use electronic products.

As demand for electronics continues to rise, so does the need for more sustainable ways to manage their lifecycle. Electronic waste is a rapidly growing stream, and most electronic appliances are prematurely discarded – not due to lack of function but to being outdated. The large amount of electronic waste created threatens the environment and human health, and the amount of recyclable material that could have been utilised is striking. A record 62 million tonnes of e-waste was produced in 2022, up 82% from 2010 and on track to rise another 32% to 82 million tonnes in 2030 (Baldé et al., 2024). While the negative impacts of production and end-of-life handling of electronic appliances are vast and growing, most people are unaware of the challenges this approach to IT can create. Lack of proper recycling leads to the release of toxic compounds and the continuation of mining to produce new IT products (Bansal et al., 2016).

PSS solutions for electronics could create more sustainable consumption and usage by opening new markets for refurbished, maintained, or repaired IT. Research indicates that circular business models, especially PSS, within electronics not only lead to cost savings but also significantly reduce CO₂e compared to linear models (Lopez & Soltani, 2023). Further, an LCA study shows that use-oriented or product-oriented refurbishment PSS solutions offer significant potential for reducing the impacts associated with terrestrial ecotoxicity, human toxicity, and depletion of mineral resources, underlining the environmental and social impact potential of electronics-related PSS solutions (Nunes et al., 2021).

In addition to the increase in use (and waste) of e-products, the amount of data needed worldwide is also increasing due to virtual worlds, wikis, blogs, e-mails, online games, traffic systems, and much more. Today, most businesses cannot thrive without entering the digital market, and cloud-based computing provides new capabilities to store, search, mine, and distribute massive amounts of data in organisations. IT integration in businesses has provided many opportunities, but these come with a polluting downside from the extraction of raw materials, production, use-phase, and disposal (Bagheri & Shaltooki, 2015).

The Nordic Region is one of the global leaders in the digital economy and an outstanding digital economy market, with more than 90% of the population being regular internet users (Christensen et al., 2018). During the pandemic, a massive uptake in streaming media was seen in the Nordics, and if following international trends, this could be the new normal (Ceci, 2022). The high GDP per capita in the Nordics enables the average person to spend more on technology than in most other regions, and statistics show that Nordic citizens are very curious about the latest technology. The Nordic region has been the starting point of globally known digital solutions such as Spotify, Skype, and Trustpilot, and the tech market is supported by Nordic governments implementing numerous policies to support tech innovation, from R&D tax credits to grants (Carlsson, n.d.).

In terms of marketing electronic products, B2B operations typically involve offers for rental or leasing alongside outright purchase opportunities. In some cases, leasing options appear to offer financing assistance but little else by way of service. Other examples feature more solution-oriented offers, perhaps facilitated by bundling across product groups, such as IT hardware being bundled with office furniture, software, or other services. In contrast, there is a weak market for leasing or renting IT equipment to private customers, with conventional retail being the typical business model, sometimes embracing reused or refurbished products. The following section will provide insights into different Nordic PSS solutions within the product types: Computers and smartphones, printers, batteries, and cloud-based solutions and streaming services.

Computers and smartphones are high-impact products, completely essential in most people’s daily lives. Although the reduced environmental impact in reuse and recycling of appliances is evident, current take-back schemes of computers and smartphones are not very effective In the Nordics, renting- and leasing solutions for the B2B market have been present for quite some time.

Among the largest market actors are BNP Paribas 3stepIT, which leases computers and smartphones to more than 3,000 companies across 11 European countries, including Denmark, Norway, Sweden and Finland. There are also many SME providers offering PSS solutions for computers and smartphones, often branding themselves as founded on circular principles. Many PSS providers offer refurbished products, arguing that the recycled materials and reused products enable significant environmental impact reductions. The company Circular Computing goes a step further by offering Remanufacturing as a Service (RaaS), with their remanufacturing process going beyond refurbishing by returning used products to their original performance. They brand themselves on up to 40% cost savings compared to brand new latest models as well as significant sustainability benefits.

Across the market, use-oriented models are currently dominant, e.g. product leasing, where some product- and result-oriented services are additional. All identified providers offer product services for both computers, smartphones, and a wider range of IT products such as monitors, cables etc. Some also provide take-back or sales of used electronic equipment. However, PSS solutions for computers and smartphones could increase a ‘fast replacement’ culture since these product types quickly become outdated by newer models. It is therefore essential that the provider ensures identifying relevant customers in secondary and tertiary markets to continue offering the products throughout their lifecycle in order to ensure the realisation of the potential environmental benefits of the PSS models.

The printing industry has been a long-time adopter of PSS solutions due to the increased effectiveness and efficiency of printing operations, as well as financial analyses that demonstrate long-term benefits for both manufacturers and users of printing machines. Studies show that PSS models extend the lifecycle of printing machines through improved device maintenance (Salwin, 2021). From a TCO perspective, PSS is particularly relevant for printing services, as maintenance is one of the major ownership costs for printers. In the Nordics, use- and product-oriented PSS models dominate the printing sector. However, result-oriented models – such as pay-per-print services – are more prevalent for printers than for many other product types.

The B2B market remains the primary target for PSS printer solutions, but opportunities in the B2C and B2G markets are also viable. Result-oriented models, such as pay-per-print, incentivise manufacturers to improve the efficiency of their products. This shift from selling ink cartridges to charging per copy encourages the development of more ink-efficient printers and cartridges with a longer lifespan, reducing waste and costs for consumers.

In addition to these economic benefits, PSS solutions for printers have the potential to reduce environmental impact by promoting better maintenance and repair services, leading to reduced consumption and more efficient use of machines. By handling acquisition costs and maintenance, PSS models make high-quality industrial or business printers accessible to more companies, fostering wider adoption and greater sustainability within the printing sector.

If not properly recycled, batteries can have a significant environmental impact due to their mixed metal components and heavy metals. The Nordics have had battery taxation in place since the 1990s, along with extensive collection schemes (Nordic Council of Ministers, 2002). However, public awareness of these issues remains low, as illustrated by a survey showing that 44% of the Danish population is unaware of the 30-year-old battery collection schemes, leading to inefficient recycling rates (Elretur, 2022). PSS solutions for battery maintenance and collection could help address this issue by promoting proper disposal and recycling practices.

Among the PSS providers in the Nordics offering battery solutions, few focus on larger batteries, such as those used in electric bikes, scooters, and cars. This may be due to the challenges involved in repairing and maintaining batteries, as servicing them can be complex and costly, particularly for independent repairers (Dávila et al., 2021).

The environmental benefits of PSS solutions for batteries depend on factors such as battery type, product type, component composition, and the approach of the PSS provider. Providers offering repair and maintenance services for batteries can reduce environmental impact by lowering the consumption of scarce materials, reducing hazardous waste, and extending battery lifespans. However, PSS models that rely on battery swapping schemes – where batteries are replaced rather than repaired – may increase environmental harm by promoting higher consumption of scarce resources and generating more hazardous waste. While swapping is often faster and cheaper, it may lead to greater resource consumption unless accompanied by effective waste management. In some cases, swapping schemes can still offer environmental benefits if they prevent the full replacement of a product, such as an electric bicycle or smartphone (Mikolajczak, 2021).

The introduction of the new EU Batteries Regulation is expected to benefit PSS solutions for batteries. The regulation increases sustainability requirements across the entire battery lifecycle, including material sourcing, collection, recycling, and repurposing. Additionally, the requirement for digital product passports, set to take effect in February 2027, will enhance transparency and make it easier to offer services such as battery reuse and repair (European Commission, 2023c). This regulation could create new opportunities for PSS providers by facilitating better battery management and reducing environmental impacts.

With the rapid digitalisation of the Nordic countries, cloud-based solutions and streaming services have become increasingly widespread and in high demand. These services cater to both consumers and businesses, with consumer-oriented offerings typically being low-cost, mass-market solutions, while business-oriented cloud-based services focus on reliability, security, privacy, availability, and customisation. For example, streaming services like e-book platforms operate under use- or result-oriented models, depending on the payment structure, and are primarily targeted at the B2C market.

Cloud-based PSS models, such as software-as-a-service (SaaS) and data management solutions, play a significant role in the Nordic economy. Our research on software solutions shows a trend towards subscription-based service models, which offer regular updates, security, and availability. While these solutions lower material and transport needs by replacing physical copies with digital alternatives, the growing demand for data storage raises concerns about energy consumption for data centers. Additionally, a large portion of the consumed energy converts to heat, causing operational challenges such as reduced system reliability, shortened device lifespans, and increased cooling demands (Buyya et al., 2024). 

Limited research exists on comparing environmental impacts between cloud-based PSS and traditional models, particularly regarding electricity and cooling demands in data centers. Furthermore, there is a need to develop future generations of cloud solutions that address the environmental and operational consequences of energy usage (Buyya et al., 2024).