For the very first time, the major names in electronics (from Microsoft to Vodafone) are pledging to work together for the circular economy.
Microsoft, Google, Cisco, Accenture, Dell Technologies, Vodafone. These are just some of the major names in electronics, with a combined market capitalisation of $6 trillion, that have officially committed to the circular economy. With the Circular Electronics Partnership (Cep), for the very first time private companies will work on this issue side by side with a consortium of international organisations (including the World Economic Forum, the Global Electronics Council and the Responsible Business Alliance). Announced on 18 March 2021, the Cep has the mission of "maximising the value of components, products and materials throughout their entire lifecycle, drawing on fair and safe working practices and relying solely on circular resources. These changes will generate economic value, as well as creating a positive social and environmental impact." This statement of intent translates into an action plan for 2030.
Electronic waste disposal, a growing problem
In terms of volume, the 53.6 million tonnes of electronic waste generated worldwide in 2020 account for just 2 per cent of solid waste. But there are two reasons they should be taken seriously. First, this figure is set to grow to 74.7 million tonnes in just ten years, driven by the pervasive spread of ever cheaper devices and the incorporation of electronic components into countless objects, from toys to clothing. Second, only 17.4 per cent is sorted and recycled: it is no coincidence that devices account for 70 per cent of the hazardous waste that ends up in landfill.
All of this has consequences in terms of soil and water contamination, but also of human health. Those who manually dispose of this waste without adequate safeguards are exposed to a range of problems ranging from skin rashes to disruptions in neurological development, according to several studies. The issue also carries an economic weight. The raw materials disposed of have a combined value of around $57 billion, driven primarily by iron, copper and gold. Properly recycling ICT devices such as computers and smartphones, recovering the most valuable materials, represents an economic opportunity worth between €2.5 and €5 billion. Even larger — in the region of €10–20 billion — is the opportunity concealed within circular practices such as reuse and refurbishment.
The roadmap for a circular economy in the electronics sector
Drawing on this data, the coalition of companies, experts and NGOs has developed an action plan built around six pillars: design for circularity; stimulate demand for circular products and services; grow responsible business models for circular electronics; increase official collection rates; build alliances for reuse and recycling; develop markets for secondary raw materials. For each of these, a series of objectives has been set with target horizons of 2023, 2027 and 2030.
Some examples? Certifications and ecolabels provide valuable guidance for consumers, but today there are still too many of them, and they are confusing. By 2027, manufacturers are therefore committing to work with the bodies that issue them to harmonise their criteria. Another limitation lies in accounting systems that often reward, through tax incentives, the purchase of new products: on this front too, trade associations are pledging to act in concert with governments.
A technician during a desktop PC repair. Photo via Sean Gallup/Getty Images
Some of the new developments concern consumers very closely. Recently, for example, the European Union set the benchmark by introducing the right to repair for certain categories of products: this means that companies will have to ensure they can be repaired within 10 years. The new action plan also addresses some practical obstacles: who can take responsibility for repairs during the warranty period? On whom does liability fall if the work is not carried out properly? With this in mind, partnerships between manufacturers and independent technicians are being considered, including training courses, certifications and shared manuals. Looking further ahead, manufacturers also want to extend to end users the ability to independently repair the products they have purchased.
The big names in electronics forge their first alliance for the circular economy
Economy & innovation — di Valentina Neri
For the very first time, the major names in electronics (from Microsoft to Vodafone) are pledging to work together for the circular economy.