Circular tech: Designing out waste in the digital economy

The United Nations has set 21st April as World Creativity and Innovation Day. This observance was designated to highlight the critical role of creative thinking and innovation in addressing social, economic, and sustainable development challenges worldwide.

Creativity and innovation show a symbiotic relationship, with each strengthening and enabling the other. Creativity involves conceiving new ideas or developing old ones, while innovation puts those ideas into practice. For innovation to be sustainable, circular economy principles need to be embedded into both design and implementation.

Circular tech in the digital economy refers to designing technology to eliminate waste and keep resources in use for as long as possible. Based on the circular economy, it focuses on creating durable, repairable, and energy-efficient devices, software, and systems.

Statistics indicate that about 62 million tonnes of e-waste was generated in 2022, equivalent to 7.8 kg per person annually, with only 20% of the waste being recycled, making it a largely untapped secondary source of both base and precious metals. This figure is projected to reach 82 million tonnes by 2030, making it imperative to implement effective waste management strategies. Also, improper disposal of e-waste in landfills or illegal open-air burning can release hazardous substances such as lead and mercury into the environment, contaminating groundwater and soil.

The raw materials used in the digital economy include metals, rare earths, semiconductors like silicon, and plastics. Rare earths like Yttrium, Europium, Neodymium are also used for the display and sound functions of laptops and cell phones. Mining of rare earths has a detrimental effect on the environment as the process produces radioactive wastes and dust, posing substantial risks to human health. Apart from the environmental and health risks, improper e-waste disposal also impacts the economy by causing the loss of valuable materials and forcing manufacturing industries to rely on mining new resources, thereby increasing their production costs.

Moving away from the traditional ‘take-make-dispose’ model to a more sustainable approach is the need of the hour. Hardware is a crucial part of this shift towards circular practices. Encouraging people to use e-waste bins and promoting retailer take-back programs are important steps toward responsible disposal of electronic items. The components that can be re-used are segregated from the e-waste. The rest of the waste is shredded, and valuable metals like gold, palladium and silver, which are mainly found in Printed Circuit Boards, are recovered by hydrometallurgical techniques or smelting.

Often, device compatibility issues prevent users from installing new software, leaving them with little choice but to discard their devices. Modular electronics is emerging as a promising pathway to reduce the volume of electronic waste sent to recycling facilities and landfills. They offer a practical solution by allowing individual components to be upgraded instead of replacing the entire device. This makes repairs and upgrades cheaper and extends the lifespan of the device. Apart from this, modular designs also make end-of-life handling simpler.

Traditional e-waste recycling often requires complex and energy-intensive methods to separate integrated materials while modular designs can be disassembled easily making material recovery more economically viable while supporting a circular economy.“

The digital economy boom has had a significant impact on carbon emissions. The rapid expansion of data-heavy technologies like blockchain, IoT, 5G mobile networks, and AI contributes to about 3% of global emissions. Data centres are the biggest drivers of C emissions.

The International Energy Agency estimated that electricity use by global data centers may have generated around 182 million tonnes of CO₂ emissions in 2024 and that these facilities consumed about 560 billion liters of water in 2023. The emissions can be mitigated through a combination of transitioning to renewable energy sources and improving energy efficiency by implementing advanced cooling technologies. Also, server-generated heat could be captured and reused for district heating systems, helping reduce reliance on fossil fuels.

Digital technologies are increasingly being integrated into circular supply chains (CSCs) to improve resource efficiency and extend product lifecycles. Circular supply chains encompass all stages from product design to end‑of‑life (EoL) management, including the processes involved in waste handling and recovery. CSCs require the support of digital technologies like blockchain and IoT to acquire valuable information that can be utilized to refine strategies.

Digital tools help create an automated marketplace where buyers and sellers can connect to ensure the continuous flow of goods throughout the supply chain. The importance of data management within the circular supply chain cannot be undermined. It helps identify opportunities for circular use, track emissions, manage inventories, and enables businesses to scale up their operations. Combining the circular economy with digital technologies has substantial benefits; however, there are roadblocks. High implementation costs, complex technology, regulatory constraints, and scalability are some barriers that need to be addressed.

To fully capture the competitive advantages and sustainability outcomes promised by digital circular models, enterprises must adopt proactive strategies that include regulatory engagement, phased investment approaches, capability development, and ecosystem collaboration. Addressing these barriers is essential for enabling resilient, resource‑efficient, and digitally enabled circular supply networks.

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