The global skills and competency framework for the digital world

#1615 Embed Embodied Carbon, Hardware Lifecycle Extension, and Circular Economy Disposal into Asset Management (ASMG) [GreenOps] change request pending

Amend ASMG at Levels 3–6 to incorporate embodied carbon accounting, hardware refresh deferral/lifecycle extension evaluations, asset redeployment, and verifiable circular disposition terms.

Problem Statement

CR Raised in consultation with global GreenOps industry groups.

SFIA 9 Asset Management (ASMG) focuses on financial, legal, and technical lifecycle tracking of hardware and software assets. However, it ignores embodied carbon—which frequently accounts for the majority of a hardware asset's total carbon footprint—and lacks competency descriptors for evaluating hardware lifecycle extension, device refurbishment, asset reassignment, and verified circular economy disposal (chain-of-custody recycling/reuse).

Proposed Change

Amend ASMG descriptors at Levels 3–6:

  • Level 3 (Apply): Tracks asset age, condition, and maintenance history to support hardware refresh deferral, asset redeployment, and device lifespan extension.
  • Level 4 (Enable): Accounts for embodied carbon alongside financial book value in asset registers; evaluates refurbishment options and verifies chain-of-custody for asset disposal.
  • Level 5 (Ensure, Advise): Formulates asset lifecycle strategies that balance embodied carbon, operational efficiency, and financial depreciation policies; mandates circular economy terms for hardware end-of-life.
  • Level 6 (Initiate, Influence): Establishes organisational policies for device lifespan extension, asset reuse frameworks, and embodied carbon accounting standards across the technology estate.

Rationale

  • Fills a critical gap where business cases ignore embodied carbon because it does not appear in ongoing operational expenses.
  • Aligns technology asset management with circular economy standards and GHG Protocol Scope 3 Category 1/2 accounting.

 

Note: More than 36 jurisdictions globally are actively adopting or aligning their corporate disclosure regulations with the IFRS Sustainability Disclosure Standards (ISSB) to create a global baseline for climate and sustainability reporting. Beyond the UK, the EU, and Australia, numerous other countries have formally finalised their approach to adopt or closely align with these rules, including Brazil, Canada, Chile, China, Hong Kong, Japan, Malaysia, Mexico, Nigeria, Qatar, and Turkey. Additionally, nations such as Singapore, South Korea, India, and Indonesia are in advanced stages of implementing ISSB-aligned frameworks. View official implementation maps and country-by-country data on the IFRS Foundation Jurisdictional Profiles page.

Proposed change applies to Asset management

Current status of this request: pending