How can an SME within the IT industry navigate greenwashing?

Abstract

Despite raised awareness within society, greenwashing is increasing in both prevalence and sophistication. Within the IT sector, greenwashing can be seen emanating from IT technology manufacturers to electronic waste (e-waste) recyclers. Small and medium enterprises (SMEs) who are committed to demonstrating genuine environmental credentials are faced with significant challenges in clearly advertising the impact of their business when relying on third-party claims of green credentials which they may not have the expertise or resources to substantiate. With Rapid IT, a small IT recycling and refurbishment business as a case study, risk factors for greenwashing within the IT industry, more specifically for e-waste recycling, are investigated to establish how SMEs can avoid being unconsciously impacted by greenwashing.

To examine Rapid IT’s dependence on downstream recycling partners for greenwashing risks, an anonymous questionnaire was designed and completed by 21 e-waste recycling and IT refurbishment businesses in the UK. Potential greenwashing factors were investigated through business responses on the calculation of carbon footprints and measures taken to reduce carbon emissions, the recycling practices used for e-waste and the questions that customers ask regarding sustainability.

Statistical analysis of the results found that the majority (85.7%) of the businesses focus on their environmental credentials within their marketing to customers, but 33.3% of businesses have no awareness of their carbon footprints. A wide variety of measures to reduce environmental impacts through waste disposal, recycling and operational emissions are employed by the businesses, but relatively few businesses have adopted externally verified carbon assessments (23.8%), despite the high occurrence of businesses with ISO 14001 environmental accreditation (66.7%). Similarly restricted uptake is seen for carbon plans for net-zero emissions by 2050 (42.9%) or emission-reduction measures such as biofuel use for transport (0%), onsite renewable electricity generation (33.3%) or energy management systems (9.5%). Additionally, customers ask insufficient questions on sustainability, particularly those relating to carbon emissions as opposed to the recycling process. The findings indicate a need for greater attention to carbon emission reductions from IT and e-waste recycling and refurbishment SMEs in order to claim sustainability with assurance and avoid greenwashing. Recycling customers could reduce their risks of being misled through greenwashing by increasing active enquiries about the sustainability of recycling. Additionally, the average redistribution of e-waste to further recyclers is significant (46.4%), highlighting an area of greenwashing risk potential for downstream recyclers to invalidate the claims of zero waste-to-landfill made by businesses such as Rapid IT.

The findings from the questionnaire analysis were used to formulate a set of criteria that SMEs could use to reduce the risk of unconscious greenwashing from secondary exposure to downstream recycling or disposal partners.