When it comes to understanding the environmental impact of IT equipment, not all data is created equal. Many organisations rely on spend-based estimates as a shortcut for carbon reporting. But here’s the catch: these estimates can significantly underestimate the true carbon footprint of your IT devices.

Spend-based carbon estimates calculate emissions based on the cost of a product or service. While this method is easy to implement, it’s far from precise. We did a recent comparison which showed that spend-based data could understate IT emissions by up to 75% when compared to Life Cycle Assessments (LCAs).

Why does this happen? The cost of an item doesn’t always correlate with its environmental impact. For example:

Life Cycle Assessments on the other hand, take a deeper look. They map out the emissions associated with every stage of a product’s life—from raw material extraction to manufacturing, transport, use, and end-of-life processing. This approach provides a far more accurate picture of the true environmental impact of IT devices.

Using LCAs instead of spend-based data for carbon reporting provides several key advantages:

Switching from spend-based estimates to LCAs is about more than just better reporting. It’s about creating actionable insights that can drive tangible sustainability outcomes. Whether it’s making smarter procurement decisions, extending the life of IT equipment, or adopting remanufactured technology, accurate data empowers organisations to take meaningful steps towards reducing their environmental impact.

While LCAs require more effort to implement, the benefits—both for the planet and your business—are well worth it. By understanding the true lifecycle impact of IT devices, organisations can align their sustainability goals with real-world actions, ensuring their strategies make a lasting difference.