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WEEE Comes Full Circle
December 31, 1969 |Estimated reading time: 6 minutes
Environmental legislation, such as the EU’s WEEE Directive, places responsibilities on producers of electronics products - through the product’s entire useful life and beyond. This article highlights the process one EMS provider uses to manage the end of life of its own e-waste.
By Dave Jollimore, Celestica
It seems that environmental issues are headline makers. It’s difficult to ignore the scientific evidence we’re exposed to each day, warning us and entreating us to change. The electronics industry is going through its own changes related to the environment, and has an important role to play in protecting it.
Environmental legislation, such as the EU’s Waste Electrical and Electronic Equipment (WEEE) Directive, places extended responsibilities on producers - original equipment manufacturers (OEMs). In many cases, OEMs are responsible for the product that they place on the market, through its entire useful life and beyond. Now, they are responsible for the take-back and recovery of these products, and the re-use and recycling of the materials contained within them.
Figure 1. Transition of the life-cycle model.
More recently, there has been greater public awareness of environmental issues surrounding our industry, and a greater expectation for heightened corporate social and environmental responsibility - keeping the industry on its toes. There is also pressure from non-government organizations (NGOs) in the form of negative publicity, and these organizations are making examples of the polluters within our industry.
At the same time, there is double-digit growth in the electronics market. The obsolescence rate of electronic products is increasing, and technology is changing rapidly with the digital revolution. As a result, the amount of waste from electrical and electronic equipment is growing significantly. All of these factors mean a greater focus on end-of-life products, materials, and processes.
As EMS companies continue to provide services over and above their base business, end-of-life issues facing their customers present a significant opportunity. The EMS industry can assist customers by expanding services (or leveraging existing capabilities) in the area of end-of-life management and environmentally responsible recycling. Most top-tier EMS providers have existing capabilities in reverse logistics, including the ability to take back, repair, refurbish, and re-sell. However, few have the capability to recycle and recover materials properly from electrical and electronic waste (e-waste). Additionally, few can provide a traceability solution to customers that allows them to meet the obligations of various environmental legislative initiatives, and ensure that they are protected.
With expanded capabilities and the ability to recycle properly, we may view the life cycle of electronics differently. Traditionally, it followed a “cradle-to-grave” model. Now, however, we are moving toward a “cradle-to-rebirth” model - recovering, re-using, and recycling materials (Figure 1).
EMS providers have an opportunity to assist their customers in the end-of-life process by leveraging their skills, product knowledge, facilities, logistics networks, and partnerships. Tier I EMS companies can offer these advantages in support of the take-back, recovery, re-use, and recycling of end-of-life electronic products.
The recycling/end-of-life industry is highly fragmented and involves several small players that typically have one or two locations in one region of the world. As a result, OEMs must partner with multiple recyclers across many geographies. Others are adding cost to the process by moving end-of-life materials back to one region for disposition and recycling. Leading EMS providers have existing global operating networks that can establish recycling operations, including de-manufacturing, material harvesting, and other material preparation activities in regions where the e-waste is generated.
As global players, EMS companies have networks in place for forward logistics processes - the ability to ship product to their customers and access to fulfillment services that involve the direct shipment of goods to the end-user. These capabilities can be leveraged in a reverse direction to facilitate the take-back of end-of-life electronics, products, and components.
As freight represents a significant portion of the cost of the end-of-life management process, using these networks and the global footprint of EMS providers could mean significant cost savings to OEMs.
Like any business, the recycling industry is motivated by making money and maximizing the value of materials to ensure a return on investment. There are well-documented cases of end-of-life materials appearing on the “grey market,” or e-waste units that should have been destroyed returning for warranty claims. This type of activity may occur due to the unethical business practices of service providers or poor security practices in recycling facilities.
EMS firms may provide a trusted alternative. Because end-of-life management is not their core businesses, global EMS providers would not risk reputations and customer relationships by handling e-waste irresponsibly. They strive to meet all legal requirements, and would ensure that they are exercising adequate due diligence when processing customers’ end-of-life materials.
One of the first steps in the reverse process is a triage of material to determine whether it can be refurbished or re-sold in different markets, or recycled. EMS companies can draw upon extensive engineering skills to develop solutions, such as triage at source, to reduce overall process costs. At the front-end of the life cycle, design for environment (DfE) practices can ensure that end-of-life processing is efficient and cost-effective. With added recycling capabilities, full-service EMS companies can offer DfE information, such as use of materials, ease of de-manufacture, etc.
Traceability - The Chain of Custody
Tracking product weight and constituent material generated by de-manufacturing activities is a requirement of global recycling legislation. In addition, most OEMs must understand what happens to the material generated from e-waste once their product has reached the end of its useful life. OEMs need to know how much material is recovered vs. how much material is sent to the landfill. WEEE has set specific targets for the amount of material that is recovered from the e-waste, depending on the product application.
OEMs must protect themselves from having products or parts end up on the grey market. There also is a risk of product being exported to countries where there is lack of oversight, and material may be processed in a way that is harmful to human health or the environment. Some EMS companies have established software solutions that facilitate material tracking of e-waste and de-manufacturing activities. EMS companies that provide RoHS-related services also understand the material content of devices used to manufacture their customers’ products.
Conclusion
One EMS provider* has established the ability to manage the end of life of its own e-waste at several global locations. Figure 2 gives an overview of the process, which includes de-manufacturing. To conduct this process, secure facilities ensure the protection of customers’ intellectual property (IP) and assets. To meet legislative requirements and provide visibility to the chain of custody, software is needed for detailed tracking and reporting. The operations mandate states:
- Ensure the environmentally responsible handling of end-of-life materials.
- Be a good corporate citizen.
- Maximize the recovery of value from the materials.
- Comply with existing and emerging global, regional, and local environmental legislation.
Figure 2. End-of-life management operations.
The key to fulfilling this mandate is to establish and maintain trusted partnerships with end-use partners, and ensure transparency and traceability across the supply chain. Environmentally progressive EMS providers that develop a strong end-of-life program will be well-positioned to help customers comply with environmental responsibilities, allowing them to focus on the core business of developing next-generation products.
*Celestica, Toronto, Ontario, Canada.
Dave Jollimore, director of Green Services, Celestica, may be contacted at (416) 448-5800; e-mail: djollimo@celestica.com.