Financial and corporate aspects with recycling
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Financial and Corporate Aspects
with Recycling .. ICT
By Ahmed Buhazza
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• ICT Service Life
• Wider risk
• Value out of disposal
What is your approach for electronic/ICT dispatching?
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ICT Service Life…
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ICT procured equipments
Source: Bahrain Consumer Electronics Report Q1 2011 - Business Monitor International (December 2010)
http://www.reportlinker.com/p0169782/Bahrain-Consumer-Electronics-Report-Q1.html
Computer hardware
48%
Mobile handset 15%
AV devices 37%
Electronic Spendings in Bahrain (2009)
Notebook account for about 60% of Computer Sales
Source: National Audit Office survey and analysis – UK 2005-06 (million of Units)
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The average age of ICT equipment at disposal
Source: National Audit Office survey and analysis – UK 2005-06 (million of Units)
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ICT Age Factors
Brand, Equipment Quality & Configuration
Supplier Support and Spare parts availability
Warranty Period
Software/System update, version Requirements
User & Business Demands
Usage, Carefulness, Damages
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Asset Lifecycle
Source: Phillip J. Windley (2002)
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Benefits of Asset Management System
& Refresh Period
• Inventory Control
• Total Cost of Ownership
• Software License Compliance
• Operational Monitoring and Control
• Decision Making about IT Resource Deployment
• Zero-day Employee Provisioning
• Standardization and Compliance
• More Informed Purchasing
• Business Resumption Reducing operating costs (10%-40% cost savings of operating cost)
Source: National Audit Office survey and analysis – UK 2007
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IT is a Business Decision
Minimize Total Cost of Ownership •Dispose before end of life •End of Warranty •Buy-Back before End of Life
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Wider Risk…in Disposal
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IC T equipment life-cycle Procurement Disposal
Source: National Audit Office survey and analysis – UK 2007
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Final Destination!
• Landfill: The burial of waste in regulated disposal facilities.
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Waste Refuse
ZeroWaste SA’s waste management hierarchy www.zerowaste.sa.gov.au
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Disposal options
IT conforms to the European Directive on Waste Electrical and Electronic Equipment (WEEE) to dispose of its IT equipment.
Source: National Audit Office survey and analysis – UK 2007
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Refining Methods
• Clear – use software or hardware products to
overwrite storage space on the media with non-sensitive data.
• Purge
– Degaussing is exposing the magnetic media to a strong magnetic field in order to disrupt the recorded magnetic domains.
• Destroy
– Disintegration, Pulverization, Melting, and Incineration
– Shredding.
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Legislation
•Environmental Protection •The Environmental Act (1994), Section 34: Duty of care and The Environmental Protection (Duty of Care) Regulations 1991 •Hazardous Waste Regulations (2005) •Waste Electrical and Electronic Equipment Regulations (2006)
•Electrical Safety •The Electrical Equipment (Safety) Regulations 1994 •The Health and Safety at Work Act 1974
•Data Protection & Security •Data Protection Act (1998) •Official Secrets Act (1989)
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Challenges with e-waste
• Lack of legislation on the control of second hand electrical/electronic goods;
• Inadequate awareness and public education on the dangers associated with the environmentally sound management of e‐waste;
• Absence of national infrastructure for formal recycling;
• Inadequate public‐private partnerships in e‐waste control;
• Poor corporate responsibility by the industry;
• Weak global and regional response to e‐waste issues.
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Value out of Disposal…
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Generate Better Value
• Smart Aging (Refresh Period) – Define the optimum age for your corporate disposal (3 to 5
years)
– Consider Reducing the costs of resale and increasing resale revenues;
– Dispose whenever is practical and cost effective
– Contract for buy-back “revenue sharing”, “zero-cost” or “at cost”,
• Smart ICT Procurement – Awareness of the longer life items and commercial market values
for used equipments
Avoid the time when – to have no value;
– to be unserviceable or beyond economical repair; or
– that the disposal cost is higher than the likely return.
Effective ICT Asset Management and
Disposal Policy
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Avoid the Wider Risk
• Environmental Protection – Awareness about relevant legislation
– Oversight of the disposal agents’ practices
• Data protection and security – Oversight of Data wiping standard
– Oversight over approaches being used by the disposal agent
• Electrical safety Check – ICT equipments before resale or donation
Consider the use of environmentally sustainable
methods of destruction/recycling.
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Be Innovative - 50:50 Scheme
Value Employee Recovered
Year 0 100% 25% 25%
Year 1 67% 12.5% 37.5%
Year 2 33% 12.5% 50%
Year 3 0% 0% 0%
• It is Optional
• Careful Usage Longer Service Life
• Faster Refresh Period
Employee Motivation
Financial Reward
Operational Excellence
Environment Protection
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Replace Cost by Benefits
Cost Benefits
“Problems can become opportunities when the right people come together.” Robert South
Cost Benefits
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Achieve Sustainable Environment
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Thank you
All the Private, Public and Global organizations that contributing in supporting Recycle IT Project