Checklist for Compliant and Cost-Effective Enterprise Hardware Recycling Using IDC G.R.A.D.E. Certification Standards

This publication has been discontinued on June 28, 2011.

Introduction

Abstract

This IDC study discusses the topic of IT hardware disposal, taking into account risk management, cost avoidance, and environmental stewardship. It provides a list of items to consider when designing an IT hardware retirement (ITAD) strategy. The list is meant to be a road map to best practice based on a number of cases analyzed by IDC and in relation to the ITAD industry' s current offerings. The guideline was developed based on IDC' s G.R.A.D.E. certification standards as applied to the ITAD service providers and migrated to the end-user sector for maximum efficiency.

"A confluence of events is bringing hardware disposal and recycling to the forefront of the green IT debate. The most recent event that is helping stimulate the conversation is the proliferation of so-called orphan systems. These are millions of desktops, laptops, monitors, printers, servers, mobile devices, and other hardware that have ceased operating virtually overnight as a result of the economic downturn and the resulting mass layoffs. Companies are struggling to deal with their IT hardware' s end of life and will find this checklist extremely useful in establishing a sound practice going forward," says David Daoud, research manager in IDC' s Personal Computing, PC Trackers, and Green IT Programs.

Table of Contents

• IDC Opinion
• In This Study
• Situation Overview
• The Green Context
• Looking Beyond Energy
• More Green in Life-Cycle Management: PC Case Study
• The Asset Disposition, Decommissioning, and Recycling Angle
• Getting Corporate Involvement in Focusing on Hardware Recycling
• The Checklist
• CSR/Environmental Policies
• Corporate Social Responsibility Policy
• Corporate Sustainability and Environmental or Green Policy
• Environmental Metrics in Procurement, Utilization, and Retirement of IT Equipment
• Asset Management
• Accounting for IT Assets That Will Retire over the Coming Period
• Assessment of the Value of Assets to Be Retired
• Awareness of the Various Disposition Options, from Remarketing to Recycling
• Design and Deployment of an Asset Management Strategy
• Risk Management: Data Security
• Inventory of IT Hardware and Devices Equipped with Storage That Will Reach End of Life in the Next 12 Months
• Awareness of Data Security and Privacy Laws Relative to Customer, Health, Financial, and Employee Data
• Policy and Standardized Approach to Data Wiping of All Storage-Bearing Assets Prior to Retirement
• Physical Destruction of Hard Drive and Other Storage Devices upon Retirement
• Use of Own Staff to Perform Data Wiping
• Use of Accepted Norms of Data Erasure Techniques
• Use of Third-Party Professionals to Perform Advanced Data Erasure
• Data Erasure Certification from the Provider
• Data Erasure Performed in Your Facilities
• Data Erasure Performed at Your Service Provider Facilities
• Auditing of Your Data Security Provider' s Sites and Operations
• Inclusion of Data Security Reporting in the Organization' s Information System
• Legal Compliance Officer Monitoring of Data Security Procedures
• Awareness of the Security Procedures Used by the Vendor That Transports Retired Assets
• Awareness of Where the Storage Devices End Up Going After They Leave the Facilities of Your Data Wiping or ITAD Provider
• Paying or Willingness to Pay for Full-Proof Data Erasure Services
• Risk Management: Environmental Exposure Avoidance
• Full Accounting of IT Hardware Profiles for CRTs, Desktops, and Other Equipment
• Environmental Assessment of the Assets to Be Retired, with Metrics Like Energy Consumption Profile, Weight, and Toxic Components
• Awareness of Various Disposition Options, from Remarketing to Recycling, That Would Impact Your Environmental Footprint
• Asset Management Practice to Identify Optimum Route to Carbon Emission Reduction
• Asset Tag Removal in Retirement Phase
• Use of Specific Reverse Logistics Security and Safety Guidelines
• Requirement for Logistics Vendors to Train Drivers and Other Agents
• Availability of an Inventory Reconciliation Report to Match the Number of Assets Retired to Those Received by the ITAD Processor
• Unrestricted Auditing of the IT Asset Disposal Partner
• Knowing Your ITAD Vendor' s Partners
• Knowing the Actual Recycler of Your Retired Assets
• Outcome of Recycling Report
• Full Accounting of Hardware Disposition in Form of eWaste, Toxins, and Export Avoidance
• Cost Avoidance, ROI, Total Cost of Ownership
• Awareness of the Various Remarketing Options Available for Systems and Parts
• Conduct of Fair Value Analysis of the Assets to Be Retired
• Conducting an Accounting and Financial Analysis of All Various Retirement Scenarios
• Use Professional Marketer or Broker to Manage Remarketing of Assets
• Operations Management
• Receiving In-Depth Reporting on Dollar Savings from the Chosen Retirement Path
• Receiving In-Depth Reporting on eWaste Destination
• Receiving Reporting on Toxic Waste Control
• Incorporating Reports into Your Internal Reporting Databases
• Environmental and Financial Metrics Monitoring and Stakeholders Reporting
• Planning
• Use Green IT Metrics in Product Procurement
• Use ENERGY STAR 4.0 or Later as Standard for PCs and Monitors
• Use 80 PLUS Power-Saving Standard
• Use EPEAT Certification for Green PCs and Display Systems
• Use IDC' s G.R.A.D.E. Certification When Selecting an IT Asset Disposition Vendor
• Use Third-Party Software to Monitor Energy Consumption of the PC Installed Base
• Use Products That Are Designed for Recycling
• Use Products That Are Designed for the Environment
• Future Outlook
• Essential Guidance
• Learn More
• Related Research
• Synopsis
• Figure: Defining Green in a Wider Enterprise Context
• Figure: Awareness on Nonenergy Green Attributes on the Rise
• Figure: Traditional PC Life-Cycle Management: Not so Green
• Figure: Environmental Metrics in PC Life Cycle
• Figure: The Seven Areas of Focus in IT Hardware Decommissioning
• Figure: Corporate Functions That Are Stakeholders in IT Hardware Decommissioning

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