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IT disposal: waste not

Neal Saunders, Accountancy Age, 11 Oct 2007

Every organisation has to dispose of used IT equipment. But how do you do it in an ethical and environmentally sound way - and potentially reaps some financial returns? Our reporter examines the options

Let’s face it, there are much more interesting things to think about that what to do with old IT equipment. It is usually the last thing that gets considered if planning a new implementation. Perhaps it would be a bigger business priority if companies realised that it was a ‘risk avoidance’ exercise that could produce a positive cash outcome.

The most publicised risk is data security. From Paul McCartney’s charitable donations to individuals’ bank account details and various emails from within government, we have all seen the stories about information reaching the public domain that should not have.

The day-to-day reality of data security for most businesses is rather more mundane; one major risk is when old IT equipment is replaced ­ not just on computer hard drives but also printers, PDAs, telephones, memory sticks, CDs and other data storage means ­ the data on it is not controlled correctly and, as a result, misused. The consequences of this misuse are at best embarrassment and at worst can pose a serious commercial risk.

Any reputable businesses should have a security policy to cover the obvious risks that exist within the business, and this should include a section stating policy and procedure for data security. If an organisation does suffer a breach it should be a comfort to the organisation and its customers that it can demonstrate it did have procedures in place to prevent it.

Within my own organisation we have ISO 27001, a specific accreditation relating to information security within our company and how we aim to protect the data we hold on our own systems, not just how we deal with data we are contracted to dispose of. But whether or not a business goes down the ISO27001 route, they should carry out a risk assessment of data within their business and develop a data security policy that deals with it.

Systems and media being disposed of by an organisation need to have their data erased, or indeed, the medium on which data is being held destroyed if the risk assessment denotes this. We have a policy that all our own server drives are ‘degaussed’. Although this renders the drive and the data inoperable, the small loss of value of the drive was inconsequential compared to risk.

For normal desktop equipment, best practice is to use a data erasure software tool. We have standardised across our 10 EMEA processing locations on Blancco. This is a guaranteed process that allows us to provide ‘certificates of destruction’ to clients
for their data and a full audit trail of how that data was handled.

The environmental impact of obsolete IT has gained a lot of publicity in the last few years; driven by our increasing awareness of our impact on the planet but also by the recent introduction of the WEEE (Waste Electrical and Electronic Equipment) legislation across Europe and this year within the UK.

The WEEE legislation is very ambiguous and has led to misunderstandings about manufacturers’ obligations regarding the take-back of old IT equipment. The most popular misconception is that when a manufacturer or reseller sells a new item it is obliged to collect an old one. This is not correct.

Following recent clarification from the Department for Business, Enterprise and Regulatory Reform, producers are responsible for the recycling of their market share of equipment, but they are not responsible for collecting it from the customer’s

premises and can nominate where the customer should deliver old kit to.
Bearing in mind that the WEEE legislation will not be a free answer to redundant IT hardware, what’s the best way to deal with it? It is likely that of all the IT equipment your business is looking to get rid of, only some of it will be suitable for recycling. Some equipment, particularly if it is less than four or five years old, will retain some commercial value.

Many organisations are interested in your redundant equipment because there may be value in it. They will simply extract the valuable equipment and pass on the residue product which has no value. The cheapest way of getting rid of this type is to sell it by the container to China and India. The downside to this option is that it will be dismantled in horrendous conditions using child labour.

If your organisation does not want to contribute to this practice, then it must be sure that the organisation it disposes through has a full audit trail of who does the recycling. It is simpler if the organisation does its own recycling in house and can provide an auditable explanation of where everything ends up.

Once the product has been audited, tested and wiped, it needs to be sold for its ‘fair market value’. Any reputable organisation will be able to produce a guide as to what they will expect to achieve in terms of sale value for the product. These can then be compared so that you can choose the company that can offer you the best value back.

Neal Saunders is managing director of Dataserv

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