E-waste: a growing concern

06-06-2011 | Electronic and electrical equipment waste (e-waste) is the world’s fastest growing type of waste stream. It includes rare earths and metals and hazardous substances that can cause health and environmental risks when their discard is not managed and monitored appropriately.

What’s the problem?

Demand for electronic products is on the rise, and obsolescence is also increasing. Computers, mobiles and other electronic goods are responsible for the production of between 20 and 50 million tonnes of e-waste worldwide every year. Only a fraction of this e-waste is collected and treated properly. Large amounts are amassed and find their way to substandard treatment plants or are illegally exported. E-waste that has not been properly collected and recycled often ends up in landfills with domestic waste or is exported to developing countries where it may be disassembled in scrap yards by informal recycling workers. It can also end up in e-waste landfills or dumpsites, where toxins can leak into water and soil and consequently can have a devastating effect on the surrounding environment and neighbouring communities.

What’s being done by governments?

Europe has regulatory standards and legal frameworks for dealing with e-waste and there are two key directives. These include one on the collection, recycling and recovery responsibilities and targets for electrical goods, and another provides guidelines on the restriction of use of hazardous substances. In recent years, other regions such as the United States, Canada, Japan, and China, have also embraced the issue of e-waste and hazardous substances. Despite the growing regulations however, e-waste levels continue to increase.

What’s being done by companies?

Most suppliers of electrical components and brands apply some form of eco-design in the research and development phase of their products, and many have set up systems for product take back and reuse or recycling. Others have chosen to take part in collaborative initiatives such as the Electronic Industry Citizen Coalition (EICC) or the Global e-Sustainability Initiatives (GeSI).

In spite of these efforts there is still scope for improvement. For example, voluntary phasing out of toxic substances could be introduced. Companies could also improve their take back initiatives and recycling, two activities that are often outsourced to contractors and which therefore have a problem of traceability. Leading companies have strong global eco-design programmes that include targets and performance monitoring, and which cover the lesser regulated and unregulated countries. They also have take back schemes that include proper control and traceability of e-waste, disclosing targets, performance and monitoring. Companies that recycle, reuse and source recycled materials will experience financial as well as reputational benefits in an increasing climate of attention for scarce resources and conflict minerals.

Companies recently selected

Two companies that have recently been added to the Triodos sustainability investment universe are Ericsson and Panasonic. Both are considered to have strong e-waste initiatives. Ericsson has a global initiative for end-of-life products and in 2009 it collected more than 5,300 tonnes of e-waste. The company recycles over 90% of its discarded equipment. The company also focuses on phasing out hazardous substances in its research and development. Panasonic has extensive recycling programmes and its own recycling facilities, where health and safety of employees are controlled and monitored.    

Note: The issues explored in this article are relevant for sustainable investments on the stock market. Triodos Bank believes that our socially responsible investments are a powerful means of promoting our values and working for greater sustainability, while enabling us to offer a complete range of attractive investment options to customers who choose to invest on the stock market.