The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental...

27
The Electronics Lifecycle Resource TM

Transcript of The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental...

Page 1: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

The Electronics Lifecycle ResourceTM

Page 2: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

AER Worldwide - What we do

Brand Protection

Environmental Recycling

Value Recovery

Page 3: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

Global Presence

AER Worldwide Facility

Subcontractor Facility

Rene Partner Facility

Chennai, India

Penang, Malaysia

Fremont, California

Northeast

Illinois

Southeast

Guadalajara, Mexico

RENE Partner Facilities

Guangzhou, ChinaHong Kong, ChinaShenzhen, China

Page 4: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

StEP Task Force ReUse

Current Projects:

• Definition of “ReUse”

• Framework Conditions White Paper

• Business Principles White Paper

• Global ReUse Forum

Page 5: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

StEP TF Reuse Framework Conditions

• Why promote greater reuse of electronic products?

• What is the current situation regarding reuse?

• What are the barriers to reuse of electronic products?

• How can we overcome these barriers?

Page 6: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

1) Why promote greater reuse of electronics?

– Environmental Reasons

– Economic Reasons

– Social Reasons

StEP TF Reuse Framework Conditions

Page 7: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

Environmental Reasons

• Eliminate energy consumption used in the manufacturing and transportation of new products.

• Reduce GHG emissions if the product itself uses the same or less energy than a newly produced one.

• Reduced usage of virgin materials and thus reduced deleterious effects from extraction of those materials from the earth.

• Prevents (or delays) the potential release into the environment of potential toxics embedded in the parts of the product, particularly if the product is in a country or region that does not currently have a clean e-waste industry. The toxics stay embedded until a clean e-waste industry is created to process the products in an environmental manner.

• Reduces landfill and incineration.

Page 8: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

Economic Reasons

• Extends the economically useful life of a product and thereby provides more value to society for the cost to society of making the product.

• Micro-economically, the sale of a reused product provides a return to the owner who sells the product to someone who reuses it.

• The reuse industry provides jobs and money to the economy.

Page 9: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

Social Reasons

• Electronic products can be provided to segments of the population of both developed and developing countries who may not otherwise have had access to this technology.

• Can provide jobs to segments of the population who may not otherwise have had jobs.

Page 10: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

Proposed Definition of Reuse

• “Reuse” of EEE is to continue the use of EEE beyond the point at which any particular owner is ready to deposit it into the waste stream, or to put into storage and not use it anymore.

• Key points of this definition of Reuse:– (i) If the EEE specifications still meet the perceived needs of another

potential owner/user, then the EEE should be transferred as the 1st consideration through some means to this new owner/user who then keeps the item in use as EEE and preventing it from becoming waste.

– (ii) The 2nd consideration should be to evaluate non-usable EEE to determine if any components can still be used economically. If so, components are harvested and the remainder of the EEE becomes WEEE.

Page 11: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

2) What is the current situation of Reuse?– Definitions– Statistics for Reuse

• Whole systems• Pieces

– Reuse in Legislation• Legislation that may hinder effective Reuse.• Legislation that may encourage effective Reuse.

– Situation in different geographies. – Industry Analysis

• Market• Where? How big?

Work in Pro

gress

StEP TF Reuse Framework Conditions

Page 12: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

3) What are the barriers to Reuse of electronics?

– Lack of will– Focus on recycling to comply with WEEE legislation– Inefficient economic market for Reused electronic products– Waste being disguised as “products for reuse” in order to move the waste to the developing world for non-

environmental recycling– “Murky” perception of Reuse vs. “Clean/Good” perception of Recycling.– Lack of good clear standards for respectable Reuse.– Perception by consumers that use of Reused products is bad.– Legislative barriers to use of Reused components in products.– Other Legislative barriers including Tax ones.– Perception that Recycling is “easier” than Reuse.– Global Reuse industry not fully developed.– Little effort at Design for Reuse.– No defined or recognizable standard for refurbishment.– Long term storage by consumers due to lack of awareness.– The rapid development of technologies and the fast changing fashion and functional design of devices.– The limited professional knowledge about the goods and their components at B2C refurbishers.– The missing design features to enhance reuse of present appliances.– The costs of inefficient repair, which often exceeds the market price of a new product.– The decreasing actual lifespan of new products put on the market.– The poorly developed definition and quality standards of the reuse/repair processes (especially for B2C).– The lack of commercial market tools and professional organizations for secondary markets.– Liability issues downstream– Concerns on data management/destruction.

StEP TF Reuse Framework Conditions

Page 13: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

3) What are the barriers to Reuse of electronics?

– Legislation definition confusion between Electronics for Reuse and E-Waste

– Inefficient economic market for Reused electronic products– Waste being disguised as “products for reuse” in order to

move the waste to the developing world for non-environmental recycling

– Lack of good clear standards for respectable Reuse.– Global Reuse industry not fully developed.– No defined or recognizable standard for refurbishment.– Long term storage by consumers due to lack of awareness.– Stagnation of excess, obsolete & returned items in supply

chain inventory– Concerns on data management/destruction.– Perception of cannibalization of sales by Producers

StEP TF Reuse Framework Conditions

Page 14: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

4) How can we overcome the barriers?

– Create a common nomenclature for Reuse.– Create, publish and evangelize Best Practice Standards.– Satisfy producer concerns regarding Reuse and provide an

economic incentive for them to promote it.• Warranty issues• Brand protection issues• Grey market issues• Use potential to increase available market as incentive for producers to

support increased reuse.– Provide guidelines for legislators so that they do not pass

legislation that discourages Reuse.– Create a “certified” labeling program.

StEP TF Reuse Framework Conditions

Page 15: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

Reuse in Action AER Worldwide

What are we doing about it?

• It is our business– Developing economic and environmental business models

• Active participation in StEP Task Force Reuse

• Member US EPA Reuse Coalition Working Group

• Tracking global governmental legislation

Page 16: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

Principle 1:

Anything that can extend the life and usage of an electronic product or component prevents the waste of the global resources used up in production of that product.

Reuse in Action

Page 17: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

Principle 2:

Frequently users discontinue use of a product because the product no longer meets their immediate needs, not due to the failure or technical end of life of the product.

That product can still be used and frequently there is a demand for that product (either end product or components used to create an end product.)

Reuse in Action

Page 18: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

Foundation of Business Model

An important mission is to connect this electronic material that is no longer desired by the first party and make it readily available to other parties (end users or producers) who still desire the material.

Page 19: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

Business Models for Reuse

• Inter-Company Reuse

• Supply Chain “Excess & Obsolete”

• Parts Harvesting for Reuse

• Refurbishment

• Bridging the Digital Divide

Page 20: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

Inter-Company Reuse

– Internal Asset Redeployment Programs• Electronic equipment both company branded and

purchased no longer needed by the current company owner may be in demand in another part of the company – bridge the gap logistically and communication-wise (web) to connect these two parties.

– Employee Resale Programs • Consumer product company may have perfectly good

product they do not want to sell for which there is an internal demand – connect the inventory with the employee.

Page 21: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

Supply Chain “Excess & Obsolete”

Supply Chain Inventory “Stagnation”

• The Problem

– Demand reduction or Mis-forecasting causes buildup of new component inventory in supply chain.

– Inventory sits as OEM & EMS debate who is liable and what to do now.

• Our Solution

– AER ties into SC ERP system such that “e&o” becomes immediately visible and AER can market and move the material immediately.

– Return is maximized while material has value.

Page 22: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

Parts Harvesting for Reuse

• Industry has stopped production of a critical component.

• These critical components only exist in return inventories.

• AER will cull these critical components from returned equipment and make available to the service markets.

Page 23: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

Refurbishment

• Electronic products or components that have been used are no longer desired by the current user.

• Product is evaluated for potential market demand.

• Scrap or Resell decision is made.

• Product is tested/refurbished and data wiped and sold to users who still want the product.

• Can be B2B, B2C, or components.

Page 24: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

AER Value Recovery - Process

• Brand Protection – Destruction of proprietary items

• Valuation – Decision of Reuse vs. Scrap

• Testing/Refurbishment– PC/Laptop testing– Integrated Circuit refurbishment

• Data Destruction– Hard drive and flash memory wiping

• Inventory

• Order Fulfillment

Page 25: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

Critical Aspects

• OEM contracts that clearly define what can be reused and what must be destroyed.

• Strict adherence to this split.

• Robust internal processes for sorting “must be destroyed” from “can be resold”.

• Environmentally sound certified destruction recycling processes for “must be destroyed” materials.

Page 26: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

Typical Value Recovery Process Flow

Customer Value Recovery Process

AE

R R

ecyc

ling

AE

R W

orld

wid

eS

ales

& M

ktg

AE

R W

orld

wid

e O

pera

tions

S

ites

Cus

tom

er Pickup Request from Customer

Items Picked Up from Customer &

transported to AER site

Inventory of Items made

Can be resold?Customer guideline

Certified Destruction Recycling

Resale Value?

Dissassembly (if required)

Extraction of non-

proprietary resale items

Shipment to AER S&M

Receipt & Inventory

Marketing & Sales

Data wiping/testingNo

No

Yes

Test Bad

Yes

Page 27: The Electronics Lifecycle Resource TM. AER Worldwide - What we do Brand Protection Environmental Recycling Value Recovery.

Thank You!

42744 Boscell Road

Fremont, CA 94538

www.AerWorldwide.com

Tel: (510) 300-0500

Fax: (510) 300-0505