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Kreislaufwirtschaft (Circular Economy)
Buy, use, throw away – that was the pattern by which IT worked in many companies for a long time. The circular economy counters this with a different principle: products and raw materials should stay in circulation for as long as possible. For IT hardware, this is particularly effective because every device contains a lot of energy and valuable raw materials.
In brief
The circular economy is an economic model in which products, components and materials are used, reused, repaired, refurbished and finally recycled for as long as possible, instead of becoming waste after a single use. The goal is to conserve raw materials and reduce waste and emissions. For IT hardware, this mainly means: continue using devices after secure data erasure and only then recover the raw materials.
Linear economy and circular economy
In the linear economy, raw materials are extracted, processed into products, used and then disposed of. In the circular economy, this path closes into a circle. A decommissioned laptop is not waste in this model, but a product with residual use: it can be resold, repaired or used as a source of spare parts. Only when that is no longer possible are its materials recycled. The order of these steps is set by the Waste hierarchy .
The most important strategies
In the specialist literature, the strategies of the circular economy are often referred to as "R strategies". The higher up a strategy is, the more of the original value is preserved.
| Strategy | Significance | Example from IT |
|---|---|---|
| Reduce | Use fewer devices and less material | Adjust inventory to actual needs |
| Reuse | Continue using the product for the same purpose | Pass an erased laptop on to a new user |
| Repair | Fix defects, extend service life | Replace battery or display |
| Refurbish | Inspect, repair, clean, update | Offer the device as refurbishedequipment |
| Remanufacture | Manufacture a like-new product from old parts | Industrial reprocessing of components |
| Recycle (material recovery) | Recover materials | Copper, gold and aluminum from old devices |
The recovery of raw materials from old devices and buildings is also called Urban mining.
Legal and political framework
In Germany, this is German Circular Economy Act (KrWG) the central basis. Its purpose is to promote the circular economy in order to conserve natural resources. At EU level, the Commission presented an action plan for the circular economy in 2020. In December 2024, the German federal government adopted a National Circular Economy Strategy. For reporting by large companies, the standard ESRS E5 contains its own requirements on resource use and the circular economy. The legal framework continues to develop; this entry reflects the status as of: 10/2026.
Rule of thumb: in the circular economy, recycling is the last step, not the first. Continued use comes first.
Circular economy in IT
For IT hardware, a large part of the environmental impact arises during manufacturing. Each additional year of use spreads this effort over more time. The prerequisite is data protection: devices may only be passed on after verifiable erasure. Five approaches for your own IT are described in our guide How your IT becomes a circular model. Why decommissioned servers and workstations can continue to be used is shown in the article Bye-bye throwaway culture.
Second IT combines these steps: certified data erasure with Blancco, inspection, repair and refurbishment, remarketing via online shop and store, spare parts recovery and, at the end, professional recycling as a certified waste management company. Customers receive proof for their CSR and ESG reporting. More about disposal under the Circular Economy Act.
Frequently asked questions about the circular economy
What is the difference between the circular economy and recycling?
Recycling is only one part of the circular economy. It first covers the avoidance, continued use, repair and refurbishment of products. Recycling only comes when a product can no longer be used.
What does circular economy mean?
Circular economy is the English term for Kreislaufwirtschaft. It refers to an economic model that keeps products and materials in circulation for as long as possible.
How can a company make its IT circular?
For example through longer usage periods, repair instead of replacement, buying refurbished devices and selling decommissioned devices after certified erasure. Devices that can no longer be used belong with a certified waste disposal company.
What is urban mining?
Urban mining refers to the recovery of raw materials from old devices and buildings. For IT hardware, these are, for example, copper, gold and aluminum. It is part of recycling and only comes when a device can no longer be used.
Why is continued use better than recycling for IT?
For IT hardware, a large part of the environmental impact arises during manufacturing. Each additional year of use spreads this effort over more time. Recycling is therefore the last step. The prerequisite for passing devices on is verifiable data erasure.
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