We have mentioned in our previous article that reducing individual carbon footprints needs to be supported by companies to help ignite the spark. One area of personal consumption that has led to a significant carbon footprint is electronic waste (e-waste). In this regard, it is essential that businesses take charge and lead the way in mitigating e-waste. Embracing the circular economy model presents a suitable approach for businesses to address this challenge effectively.

Electronic waste comprises of disposed electronic products such as cell phones, computers, televisions, consumer goods such as electronic toys and household lamps, as well as large household appliances such as washing machines and refrigerators. Currently, e-waste is considered the fastest growing source of solid waste in the world. E-waste generation is estimated at 62 million tons in 2022 and is projected to reach 82 million tons by 2030 according to UN’s International Telecommunications Union and UNITAR, its research arm. UN has reported that only 22% of e-waste was properly collected and recycled in 2022. Alarmingly, this figure is expected to further drop to 20% by the end of the decade because of e-waste consumption’s exponential growth. For context, an individual replaces their phone every 2.5 to 3 years which contributes significantly to electronic waste accumulation. So, with the rapid turnover of phones, each person generates a substantial amount of e-waste over time.

Limited repair options, shorter product lifecycles and the growing digitalization of society are all contributing to the increasing number. In Canada alone, according to a study by the University of Waterloo, e-waste has more than tripled in 20 years and is expected to continue to grow. Individual e-waste generated increased from 8.3 kg in 2000 to 25.3 kg in 2020 (CBC, 2023).

Electronic items are capable of releasing toxic substances and GHG emissions in the air through several disposal practices such as landfilling, dumping in bodies of water, open burning or heating and stripping of its plastic coatings (WHO, 2023). As nations turn to renewable energy, electrification of vehicles, and development of clean technologies, the demand for precious metals and critical minerals has increased. However, supply has not kept pace. Reducing e-waste can help alleviate the problem of carbon emissions and dwindling supplies of metals and minerals. This is possible if we apply the circular economy model to electronics manufacturing.

How to use the circular economy model to reduce e-waste:

As cited in our previous post, a circular economy involves prolonging the use of resources to avoid wastage and designing products that can be reused or recycled for manufacturing. It is a supply chain with a closed-loop system where recycling practices and waste reduction processes are applied across different stages of the value chain to eliminate waste, pollution, and carbon emissions. Specifically concerning electronic waste, we present several suggestions for maximizing resource efficiency at every stage of the supply chain:

1. Raw Materials

The demand for lithium, cobalt, and rare earths are forecasted to surpass the supply within the coming decade. The International Energy Agency predicts that the demand for copper and rare earth materials will jump by 40% while nickel and cobalt by 60% to 70% and lithium by 90%. The good news is that a substantial source of these materials already exists in landfills or is currently in use. Example of which is e-cigarettes, a USD $22 billion market with over 844 million vapes sold in 2022. These vapes are disposed after a few weeks of use and become instant waste. However, it is important to note that vapes are not just plastic; they are made up of lithium-ion batteries, a heating element, and a circuit board. Recycling these for raw materials can help address supply issues of lithium and other metals.

Before these electronics end up in the dump, businesses can engage in recovery programs of all used and decommissioned electronic products. If logistics and treatment facilities become an issue, consider partnering with organizations that have the capacity to collect and manage e-waste. Effective e-waste management is essential to guaranteeing that these minerals and metals are purified and operational, while also preventing the release of toxic substances.

2. Production

During the production stage, it is crucial to organize components and manufacturing processes with durability in mind. To avoid electronic waste, businesses should prioritize materials that enable easy repair and upgrade. In addition, use components that are readily available and accessible. Electronics should be constructed to maximize their lifespan, while also ensuring they are recyclable once they reach the end of their operational life. The aim is designing electronics that prioritize sustainability throughout the process.

3. Distribution

Excess inventory can lead to electronic waste. Implementing a just-in-time manufacturing approach, which produces and delivers electronics according to real-time demand data, can effectively prevent this scenario. During transportation, ensure that electronic products are stored in climate-controlled environments including warehousing to prevent damage from temperature fluctuations and humidity, thus preserving their quality and lifespan.

4. Product Use

It is inevitable that electronics succumb to wear and tear after prolonged use. When consumers consider their items irreparable or no longer functional, they frequently opt to dispose of them and acquire newer versions because usually the cost of repair exceeds the price of a new model. Businesses should consider limiting the price tag of repairs to just 15% of the actual product price to entice more consumers to resort to repairs instead of recommending buying a new model. Repairing and extending the lifespan of purchased items conserves raw materials and reduces the need for new materials, resulting in cost savings and operational efficiency.

Last April 22, The EU adopted its Right to Repair Directive that mandates manufacturers to repair goods and urge consumers to prolong a product’s lifecycle through repair. The mandate obliges businesses to make repair costs affordable and accessible such as repair vouchers and funds and supporting community repair spaces. Manufacturers must also provide spare parts and tools at a reasonable price and will be prohibited from using contractual clauses, hardware or software techniques that obstruct repairs. This directive can serve as a model for countries seeking to reduce electronic waste. National governments could also explore the implementation of extended warranties to hold companies more responsible for their product’s durability.

5. Recycle

When products are beyond repair, proper disposal becomes essential. Policymakers and companies should take the lead in encouraging consumers to responsibly dispose of these items. As previously noted, the establishment of recovery programs becomes imperative. Three options for implementing formal e-waste collection for recycling include: (1) drop-off points at retailers, (2) pick-up services facilitated by enterprises or partner organizations, and (3) the designation of municipal collection points (The Global E-waste Monitor 2024). Businesses must proactively communicate to their customers of the collection programs available for proper e-waste disposal. Despite current e-waste emissions accounting for just over 0.2% of human-induced GHG emissions, it is crucial to take proactive measures to limit e-waste, especially considering the projected exponential growth of electronics in the future.

The circular economy model proves to have several approaches within each stage of the value chain to address the pressing issue of electronic waste. Product longevity, repairability, and recycling are key pillars to ensuring sustainability with electronics. Adopting this closed loop system not only minimize waste disposal but also secures a steady supply of metals and critical minerals necessary for the production of clean technologies and electric vehicles. By supporting the principles of the circular economy, we are not only able to reduce e-waste’s environmental impact but also ensure a resilient and resource-efficient future for the electronics sector and beyond.

For companies aiming to transition to a circular economy model, let GreenEco Investments be your guide. Get in touch today, and let's work together to combat e-waste.