In 2022, Sage released a report highlighting that the small to medium enterprise (SME) CO2 footprint totalled 63% of business emissions. Seemingly innocent office furniture contributes exponentially to the global business carbon footprint, which grew by 1.3%, or 423Mt, in 2022. However, CO2 emissions from industrial processes declined by 102 Mt.
Still, according to data from the Carbon Trust, the average SME in the UK generates close to 15 tonnes of CO2 annually – more than you might think will come from office equipment.
With more organisations and countries pledging to reach net-zero emissions – more than 140 countries are aiming to do this – we’ll explore the environmental impact of office equipment and how leasing with an equipment finance company like GRENKE Leasing can help SMEs reduce their footprint.
Understanding the Environmental Impact of Office Equipment
Office equipment is seemingly innocent. However, the business impact on the environment is typically associated with our earth’s rising carbon dioxide (CO2) emissions related to energy expenditure and industrial emissions.
In 2022, the global CO2 emissions from energy combustion and industrial processes increased by 0.9% – equivalent to 321 Mt – reaching a new record total of 36.6 Gt.
Office equipment contributes to the environmental impact of SMEs through degradation – depleting natural resources and destroying ecosystems. That impact comes from three primary sources related to office equipment:
Energy Consumption
According to the Electric Power Research Institute, office equipment consumes up to 30 billion kilowatt-hours of electricity – equal to 5% of the total commercial electrical energy consumption. Consumption comes from sources like office or factory heating, cooling, and operating the office equipment.
According to statistics, the average small business in the UK will have an annual energy usage of 15,000 to 25,000 kWh. A medium business will consume 25,000 to 55,000 kWh. For every 1 kWh, 0.818 lbs of CO2 is generated.
Electronic Waste
Electronic waste is discarded electronic items with cords, plugs, and electrical components. Once an electronic item reaches its end-of-life, it’s typically discarded in landfill sites or sometimes it’s incinerated. But more often than not, it’s the landfill sites.
As the electronic items slowly decompose they leak toxic chemicals like lead and mercury, contributing to the 500+ landfill sites in the UK that are generating 31% of total UK methane emissions.
The UK stands as the second largest generator of e-waste in the world.
Carbon Emissions
18.7% of the UK’s total carbon emissions come from business. Sources include everything from electronic items to the production of office equipment. For example, studies show that the carbon footprint of a simple office chair is 72 kgCO2e, and when manufactured desktops produce around 778 kgs of CO2e annually.
Carbon emissions from office furniture are generated through procurement of raw materials, manufacturing and production, and shipping. Each stage will produce different levels of CO2 emissions.
Energy Efficiency and Conservation
Leasing energy-efficient office equipment has a positive environmental impact. Newer equipment typically demands far less energy consumption. It’s designed specifically for energy efficiency without impacting quality. The older the equipment, typically, the more energy it consumes – even when asleep.
An older computer, for example, can use up to 60 watts of energy even when asleep. The fewer watts of energy a device uses, the more energy efficient it is and the less impact it has on office equipment.
The introduction of the energy label – a way of determining how energy-efficient equipment is – has made deciphering how energy-efficient equipment is markedly easier. The adoption of the energy label has encouraged businesses to make substantial improvements in energy-saving technology – so much so that they recalibrated it to make it easier to understand which device was the most energy efficient. This is because all new equipment being manufactured was awarded the top rating for efficiency. The better the rating, the less environmental impact.
Selecting energy-efficient equipment is crucial for all businesses wishing to improve their carbon footprint. And leasing is a step in the right direction by giving companies access to newer models that are typically more energy-efficient.
Office Equipment Leasing as an Eco-friendly Business Model
An eco-friendly business model incorporates anything a business does to operate sustainably – and leasing equipment becomes part of that.
Aside from the obvious economic benefits, equipment leasing supports businesses wanting to reduce their carbon emissions. Leasing reduces electronic waste and energy usage, investing in more energy-efficient equipment that supports business operations and the environment.
Globally, more initiatives are coming to fruition as governments grapple with climate change – all of which office equipment leasing supports – but the biggest is the Race to Zero. Presented at the COP26 in 2021, 2,500 companies in the UK signed up to the initiative aiming to halve global emissions by 2030.
Along with leasing energy-efficient equipment, an eco-friendly business model will include a focus on areas like being more energy efficient in the office or warehouse – it can be as simple as turning off lights when you leave a room – outsourcing to eco-friendly companies and using sustainable resources.
An Example of an Eco-Friendly Leasing Company
Equipment leasing is becoming increasingly popular, with companies like GRENKE, a leasing company aspiring to reach CO2 neutrality by 2025, leading the charge. GRENKE operates in 33 companies worldwide, working with approximately 33,000 retail partners to deliver high-quality office equipment using affordable, tailored leasing plans.
GRENKE’s Lease of Life Report showcases the 40 years of experience the company has within the equipment leasing industry based on research gathered from interviews with 600 SME businesses.
Their business mission is to sustainably align themselves as a leasing specialist for SMEs which focuses heavily on digitalisation and sustainability.
Partnering with eco-friendly and well-established companies like GRENKE is essential for a successful eco-friendly business model.
The Benefits of Leasing Office Equipment
Leasing office equipment yields numerous benefits for business:
Lower Upfront Costs
Perhaps the most obvious is the lower initial cost. As an SME, cash flow is a big issue. 25% of the companies which took part in a survey listed cash flow as a concern. And, according to numerous statistics, over 80% of business failures are due to cash flow.
Leasing office equipment for an SME is typically more affordable than the increasingly high upfront cost of buying new equipment.
Access to the Latest Technology
Leasing office equipment enables businesses to utilise the latest technology and in doing so support business growth without having to pay sometimes large upfront costs.
Conclusion
The statistics on the environmental impact of office equipment speak for themselves. And, with more and more companies aiming to become eco-friendly and wanting to reduce their carbon footprint, leasing the latest and most energy-efficient equipment is becoming one of the best ways for businesses to do this. And, this is over and above the financial benefits that equipment leasing can bring.
