Top 5 ESG Metrics You Can Improve by Integrating ITAD into Your Business Strategy

For businesses of any size, performance is not measured by profit alone. Investors, customers, and regulators are increasingly focused on a company’s ethical and sustainable practices. According to a PwC survey, 83% of consumers think companies should be actively shaping ESG best practices. This mindset has placed Environmental, Social, and Governance (ESG) metrics at the forefront of corporate strategy.

This blog will go through the basics of ESG metrics, align everyday operations with measurable performance indicators, and reveal how IT Asset Disposition (ITAD) can deliver powerful improvements to enterprises’ overall scores come reporting season.

Skip to the metrics:

• Waste Diversion and Circular Economy (Environmental)
• Carbon Footprint Reduction (Environmental)
• Data Security and Cyber Risk (Social + Governance)
• Vendor Compliance and Supply-Chain Governance (Governance)
• Community and Social Impact (Social)

What are ESG Metrics?

ESG metrics are the quantitative figures used to measure how a company performs across three pillars. 90% of S&P 500 companies release ESG reports. But, with such broad umbrella terms, it’s not always clear what the most important data points to report on are or how things can be improved without a huge operational overhaul.

Environmental

The “E” in ESG is for Environmental, meaning how efficiently the organization uses energy and resources, and how it reduces waste and emissions. Some examples include:

• Greenhouse Gas (GHG) Emissions: The total carbon footprint of operations.
• Energy Consumption: How efficiently the organization uses electricity (measured  in kWh).
• Water Consumption: Total water usage in operations.
• Waste Generation and Management: The amount of waste produced and, crucially, how much is diverted from landfills through recycling and reuse.
• Resource Depletion: Use of finite raw materials in products and operations.

Social

The “S” in ESG is for Social, which shows how a company protects people, from employee well-being to community engagement to the data privacy of its consumers. Examples include:

• Employee Diversity and Inclusion: Metrics on gender pay gap, board gender diversity, and workforce representation
• Health and Safety: Tracking incidents to ensure a safe working environment
• Data Privacy and Security: How a company protects sensitive customer and employee information, a critical component of ESG and cybersecurity

Governance

The “G” in ESG stands for Governance. This pillar enforces accountability through ethical practices, transparent reporting, and risk management. Examples include:

• Board Diversity and Composition: The makeup and independence of the board of directors
• Ethics and Anti-Corruption Policy: The strength and enforcement of policies preventing bribery and unethical behavior
• Transparent Reporting: The accuracy and availability of financial and non-financial (ESG) disclosures

These metrics feed directly into ESG reporting frameworks such as GRI, SASB, and TCFD, forming the evidence base for ESG ratings and sustainability disclosures.

Enterprises aiming to improve their ESG score increasingly look for practical, data-rich areas of their operations that can deliver measurable impact—and ITAD fits perfectly into that equation.

Here are five metrics that businesses can improve by incorporating ITAD into their business strategy.

Waste Diversion and Circular Economy (Environmental)

Metric: Percentage of retired IT assets reused, refurbished, or recycled

Electronic waste (e-waste) is one of the world’s fastest-growing waste streams. In 2022 alone, a record 62 million metric tons of e-waste was generated, according to the UN’s Global E-waste Monitor.

Properly managing end-of-life technology demonstrates responsible resource use and circular-economy participation, both of which improve environmental metrics.

An effective ITAD program ensures:

• Maximum reuse of working devices
• Certified recycling for non-reusable equipment
• Verified data on waste diversion rates

These results directly support your e-waste and ESG strategy and can be included in your annual sustainability report.

Carbon Footprint Reduction (Environmental)

Metric: CO2 emissions avoided through reuse and recycling

Manufacturing new electronics consumes large amounts of energy and raw materials. Extending device lifecycles through ITAD reuse or resale significantly cuts indirect emissions.

By reporting carbon savings achieved through ITAD, companies can demonstrate concrete ESG performance improvement, not just policy commitments, enhancing credibility in investor and regulatory disclosures.

Data Security and Cyber Risk (Social + Governance)

Metric: Percentage of assets processed with certified data destruction

A single retired laptop or server can contain thousands of sensitive customer or employee files. A data breach from an improperly disposed asset is not just a financial risk—it’s a failure of your social responsibility to protect stakeholders. According to IBM, the average cost of a data breach in 2023 was $4.45 million.

ITAD partners, like ARCOA, ensure complete data security with certified data destruction services that adhere to standards like NIST SP 800-88. By guaranteeing that no data can be recovered from your retired assets, you uphold your commitment to data privacy, a cornerstone of the “Social” pillar.

Vendor Compliance and Supply-Chain Governance (Governance)

Metric: Percentage of ITAD vendors with ethical and environmental certifications

Transparent, ethical supply chains are a hallmark of good governance. Partnering only with e-Stewards certified vendors ensures recyclers follow environmental and labor standards. Tracking these certifications strengthens your governance disclosures and demonstrates ESG accountability throughout your vendor ecosystem.

Community and Social Impact (Social)

Metric: Number of refurbished devices donated or redeployed for community use

A well-structured ITAD program doesn’t just minimize waste—it creates social value. Donating refurbished devices to schools or nonprofits promotes digital inclusion and supports community development.

This metric enhances your social pillar while contributing to the UN Sustainable Development Goals (SDGs) related to education, equity, and sustainability.

Integrating ITAD into Your ESG Strategy

To make ITAD a measurable driver of ESG improvement:

• Audit your IT asset lifecycle and existing disposition process.
• Define KPIs that align ITAD outcomes (reuse rate, CO₂ savings, data security compliance) with ESG metrics.
• Choose certified partners that provide transparent reporting and verifiable data.
• Incorporate results into your sustainability dashboard or ESG report.

By embedding ITAD into your ESG strategy, you convert operational actions into measurable sustainability outcomes.

ARCOA Turns Your ESG Intent into Measurable Impact

Improving ESG metrics isn’t about adopting abstract new policies; it’s about embedding sustainability, security, and governance into your existing business functions. IT Asset Disposition offers a clear, data-driven path to do just that.

ARCOA’s solutions provide the technology, certified processes, and, most importantly, the verifiable data to make your ESG goals a reality. We help you transform your retired technology from a potential risk into a proven asset for your sustainability journey.

Ready to improve your ESG score? Contact ARCOA today for a comprehensive audit of your IT asset lifecycle and see how much your retired techhttps://www.thinkarcoa.com/process/nology can contribute to your sustainability goals.

Frequently Asked Questions (FAQ)

How does e-waste recycling affect ESG scores?

E-waste recycling and reuse directly improve the “Environmental” score by reducing landfill waste, conserving finite resources, and lowering the carbon footprint associated with manufacturing new products. It is a key metric within any comprehensive ESG strategy.

Is data security considered part of an ESG strategy?

Yes, absolutely. Protecting customer, employee, and partner data is a critical component of the “Social” pillar. A strong data security program for both active and retired assets demonstrates social responsibility and builds stakeholder trust.

What ESG metrics can an ITAD partner provide?

A certified ITAD partner can provide key ESG reporting metrics such as CO₂ emissions avoided through device reuse, total weight of e-waste diverted from landfills, the percentage of materials recycled, and certificates verifying 100% data destruction for governance and compliance.