The IT channel is a critical component of the tech industry, connecting manufacturers, service providers, and end-users.
However, as customer demands shift towards environmental responsibility, with over a third willing to walk away from a channel partner if it had a poor ESG strategy, channel suppliers are in a race to not only meet these expectations, but to prove their sustainability credentials and secure their foothold in the market.
Sustainability is now much more than just a value-add, it’s an expectation. Partners and vendors are under the microscope, and those that neglect sustainability risk being left behind and becoming less relevant to prospects and customers.
As Regional Vice President of Sales, Darren Ellis is responsible for driving EMEA sales for Park Place Technologies, with a focus on growing the company’s core infrastructure services business. Darren brings to the position a successful track record of more than 15 years’ experience that includes various leadership positions and recognized sales achievements in the technology market.
It’s important that all stakeholders across the channel ecosystem collaborate to create new, more sustainable business practices and remain competitive in today’s IT market.
So, what steps could channel partners take to build a more sustainable future for the IT industry?
There’s no one-size-fits-all for a sustainable channel
The IT channel ecosystem is vast, involving many players, each with its unique role and responsibilities.
From value-added resellers (VARs) and system integrators to cloud service providers (CSPs), they all understand that sustainability proof points are linked to the services they offer and the impact they can make on their customers.
For instance, a VAR may advocate for the procurement of used hardware and extending the lifecycle of existing assets through comprehensive support and maintenance services.
Meanwhile, a CSP sees cloud as the ultimate sustainable IT solution, given its reduced on-premise footprint, meaning less servers used and so reduced carbon footprint.
This diversity in approaches shows how complex achieving sustainability is in the IT channel. It is not one-size-fits-all; instead a changing landscape where adaptability and innovation matter most.
Navigating sustainability standards
Regulatory changes are a key challenge for the channel. The IT industry faces a range of global, national and local rules, each with their own sustainable requirements.
For example, energy efficiency regulations in the EU and UK focused on improving electronic devices' energy efficiency.
These rules set how much power devices such as laptops, monitors, and servers can use. And these keep evolving worldwide, adding to the complexity in always complying.
An additional hurdle is the lack of distinct rules, standards and accreditations that everyone uses when it comes to improving sustainability. This makes it challenging for suppliers to decide which standards are applicable to their specific niche within the IT channel.
To set themselves up for success, channel suppliers can prioritize solutions such as proactive monitoring to regularly track and assess regulation updates and implement regular auditing and reporting processes to ensure ongoing compliance.
Building environmental relationships
An integrated approach of channel suppliers working closely with their customers when it comes to being environmentally friendly is important for the long-term profitability of channel suppliers.
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Instead of just being buyers and sellers, businesses should now focus on forming long-term partnerships in a bid to become more sustainable.
Research has shown that the channel has been developing alliances to improve ESG and was under pressure to demonstrate the use of innovative technology to support sustainability efforts.
Tinkering at the fringes of the business was no longer an option and to be truly sustainable required wholesale changes and working with others through alliances or ecosystems.
Investing in clean energy and carbon neutrality
Another pivotal step for channel suppliers on the path to sustainable business is investing in clean energy sources and striving for carbon neutrality.
This includes transitioning to renewable energy for data centers, offices, and operations, and adopting energy-efficient technologies to reduce power consumption.
By setting clear targets and regularly reporting progress on carbon reduction efforts, channel suppliers can show their commitment to their environmental responsibility.
Embracing circular economy practices
E-waste is a mounting issue, and by 2024 the UK will become the world’s biggest contributor of e-waste. Channel suppliers can further enhance their sustainability efforts by embracing circular economy practices and support in not only reducing waste but also reusing and recycling resources where possible.
Channel suppliers can partner with recycling firms, offer buyback programs for old equipment, and explore remanufacturing options to minimise the environmental footprint of their products and services.
By closing the loop on product lifecycles, they can significantly contribute to a more sustainable IT ecosystem.
Sustainability isn't simply a buzzword in the IT channel; it's a transformative force reshaping the industry's future. Channel partners are navigating a complex path, driven by customer expectations and competition.
Despite regulatory challenges and the absence of standardized sustainability measures, companies are committed to delivering a more sustainable future for the IT industry, and the channel needs to play its part in that.
