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How to Transition to a Quadrent Green Lease

It’s estimated that Australia’s e-waste stands at 21.9 kilograms per capita each year, along with 50 per cent of devices not recycled. Further, 800,000 Australian kids are at risk of not having access to the technology they need to learn and thrive.

New Zealand’s estimated e-waste stands at 19.2 kilograms per capita each year, and one in seven New Zealanders don’t have access to the technology they need.

For companies looking to proactively address their environmental, social and corporate governance (ESG) objectives, while ensuring they always have access to the latest technology, opting for Quadrent’s Green Lease delivers a range of benefits to organisations and the broader community. Keep reading to learn how to transition to Quadrent’s Green Lease.

Transitioning to Quadrent’s Green Lease

The process of transitioning to Quadrent’s Green Lease depends on how your current technology ownership is structured. There are three key entry points companies can use to transition to a Quadrent Green Lease:

  1. Buyback: The company gets money for its old devices, both for devices currently in use and about to be decommissioned and surplus devices in storage. This provides a cash injection to the company. If the devices are “A-grade”, these can also create an immediate digital inclusion impact. Suitable devices can be securely decommissioned and then restored for use in digital inclusion programs. The company also has the option to use the money from selling the old devices to purchase new technology for donation to a digital inclusion program. Once this is done, the company can establish a Quadrent Green Lease agreement to fund any new devices they require.
  2. Sale and leaseback: For companies that currently own their devices and don’t need to replace them in the near future, the devices can be sold to Quadrent and leased back on a Quadrent Green Lease agreement for the remaining useful life of the current devices. This allows the company to use the technology for the remainder of its useful life, and afterwards donate a portion of them to digital inclusion programs while moving to a Quadrent Green Lease to fund future devices they require.
  3. New devices: Companies can also enter into a Quadrent Green Lease agreement to fund new devices. This is suitable for situations where a company is finishing a lease with another leasing provider or if they previously owned their devices and need to purchase new devices immediately.

For some companies, a combination of the three entry points above can be a smart solution to maximise the sustainable technology lifecycle. For example, surplus devices in storage can be sold through a buyback, newer devices still in use can be transitioned through a sale and leaseback, and brand new devices can be bought to start a new Quadrent Green Lease. By offering a range of options, companies get the flexibility they need to get money for their unused devices and address their ESG objectives.

Establishing strong lease management and reporting practices to meet your ESG objectives

The Quadrent’s Green Lease process is assured by PwC and it includes embedded ESG reporting, providing independent verification that a company’s ESG objectives are effectively addressed. And with up to 20 per cent of returned technology devices donated to digital inclusion initiatives, Quadrent’s Green Lease delivers social benefit too.

This requires a commitment from the company (the lessee) to choose a sustainability representative(s) who is able to work with Quadrent to understand and establish thorough systems and processes to capture the correct ESG data to ensure the right reports are created to fulfil the company’s ESG objectives.

To assist with this, companies should also have effective and thorough lease management systems and processes in place throughout the life of a leased asset. A system such as Quadrent’s LOIS, a lease accounting software solution, provides the real-time data required to not only make IFRS 16 compliance simple and straightforward, but it also provides the information to better manage its leases.

Master your ESG journey with Quadrent’s Green Lease

Companies and customers alike are becoming more conscious of ESG. Leasing products such as Quadrent’s Green Lease provide companies with the financing and infrastructure they need to access the latest technology, have devices e-wasted or decommissioned responsibly, and provide suitable devices to kids who may not have otherwise had access to technology to support their education. Further, by pairing the Quadrent Green Lease with a lease management system, such as Quadrent’s LOIS, companies will have the systems and processes they need to monitor, analyse and optimise their lease management in real time.

Quadrent works with organisations helping them to accurately manage their leases, improve IFRS 16 compliance data inputs and proactively manage their ESG risk. With a team that has in-depth leasing knowledge and specialised accounting backgrounds, we’ll help you get the most value out of your assets while addressing increasing ESG requirements. 

Start your ESG journey simply and effectively with Quadrent. Click here for more information.