# Presentation: 684637

## Policy & Regulatory Developments

- Electronic Waste Workshop
- Commission for Environmental Cooperation/Border 2012 Program
- December 6, 2007
- Tijuana, Mexico

## Information Technology Industry Council (ITI)

- Major U.S. high-tech trade association based in Washington, D.C.
- ITI’s Environmental Coalition (EC) represents 65 manufacturers across the entire spectrum of the high-tech and electronics industries

## ITI Environmental Coalition

- The EC team works with companies in the following product sectors:
- Information technology
- Telecommunications systems and wireless devices
- Consumer electronics
- Medical devices
- Commercial and industrial systems
- Electronic components

## ITI Environmental Coalition

- The EC team leads industry engagement on product-related environmental priorities:
- Product design and materials content
- Electronics recycling
- Energy efficiency
- Environmental purchasing initiatives
- Mercury reporting & product labeling
- Advocacy and compliance assistance

## Key Companies

- Apple
- Agilent
- Canon
- Cisco
- Dell
- Eastman Kodak
- Hewlett-Packard
- IBM
- Intel
- Lenovo

- Lexmark
- LG Electronics
- Microsoft
- Motorola
- Nokia
- Panasonic
- Samsung
- Sharp
- Silicon Graphics
- Sony

## Product Design Priorities

- Electronics reuse and recycling is fundamentally linked to product design
- Manufacturers lead the way in design and innovation:
- Reduce and eliminate substances of concern
- Improve energy efficiency
- Increase product functionality
- Design for maintenance, upgrade and recycling

## Industry Commitments

- Go beyond compliance and continuously drive product environmental and energy performance through innovation
- Minimize or eliminate the use of compounds of concern when feasible
- Base design decisions on sound science, product performance and reliability

## Industry Achievements

- Through our commitment to continuous improvement, every year our products become more energy efficient, incorporate innovative materials and design advances, and become easier to upgrade, disassemble and recycle.

## Industry Achievements

- ITI member companies:
- Comply with the European Union Directive on the Restriction of Hazardous Substances (the RoHS Directive)
- Have long-standing design-for-environment or product stewardship programs that often pre-date the adoption of the RoHS Directive

## Compounds of Concern

- Many electronics contain compounds such as lead and mercury because they provide clear and unique benefits:
- Consumer safety
- Product performance and reliability
- Overall energy efficiency
- As our industry has developed viable substitutes, manufacturers have successfully incorporated them into our products

## RoHS Exemptions

- Numerous exemptions are granted under the EU RoHS Directive
- Examples include:
- Lead in CRT glass for consumer safety
- Mercury backlights for energy efficient illumination
- Deca-BDE as a flame retardant

## Beyond RoHS

- Given the global nature of our industry, RoHS-compliant devices are already available worldwide in most product categories
- Leading companies consider RoHS a floor and have already gone beyond its requirements

## Beyond RoHS

- Many companies no longer use compounds even for RoHS-exempted purposes:
- Substituting other flame retardants for deca-BDE
- Phasing out the use of mercury backlights in favor of alternate lighting sources as technology allows

## Beyond RoHS

- Many companies are reducing or eliminating compounds not subject to RoHS:
- Phasing out the use of PVC in new products, as safe, acceptable alternatives are identified
- Phasing out the use of arsenic in glass
- Constantly investigating other technically feasible, environmentally preferable options that preserve quality, reliability and performance

## Additional Design Advances

- Products are designed to be readily maintained and upgraded during their useful lives
- Facilitates final disassembly
- Products continuously become smaller and lighter (and with more functionality)
- Saves transport costs during initial distribution and also during final collection

## Why Recycle?

- Due to the presence of certain compounds, electronics can and should be appropriately recovered and managed at the end of life
- Proper management prevents potential risks
- Recycling electronics is far preferable to disposing of them in landfills or incinerators
- Conserve resources, save energy, reduce demand for new materials

## Recycling Challenges

- U.S. Census Bureau data indicate that there are 120 million American households
- Virtually 100% have at least one television
- Many/most have computers, cell phones, DVD players, MP3 players, etc.

## Recycling Challenges

- The vast majority of consumer IT and electronics products are sold through traditional retail distribution networks
- Manufacturers are often several steps removed from the consumer at the time of initial sale
- However, many state laws place the sole obligation on manufacturers to collect obsolete products from consumers

## Industry Efforts

- Industry went to Congress in 2005 to push for a federal solution
- Regulatory inconsistency, market disruption, consumer confusion were key concerns
- State patchwork approaches increase costs without increasing environmental protection
- Resulted in landmark hearings before the U.S. Senate and House

## 2005 Congressional Testimony

- While manufacturers control product design and innovation, we are only one of several major players involved in product distribution, collection and recycling.
- In addition to manufacturers, other major institutional players include:
- Distributors
- Retailers
- Government
- Non-governmental organizations (NGOs)
- Recyclers

## 2005 Congressional Testimony

- “The combined goal of these institutional stakeholders should be to develop a recycling infrastructure that is convenient for the residential consumer.”

## Possible Approaches

- Retailers have stores in thousands of communities and are the primary connection between consumers and new products
- Office Depot and Staples have established permanent recycling programs as part of their customer service commitment
- Other retailers have not

## Industry Efforts

- Involved in ongoing Congressional discussions regarding a federal solution
- House e-waste Working Group
- Senator Ron Wyden
- Congressional staff expect to release a concept bill for stakeholder consideration as early as this month

## Industry Efforts

- Ensure that used products that our companies recover are properly managed by trained personnel in appropriate facilities
- Provided critical support for US EPA’s CRT Rule, which severely restricts exports of end of life CRTs
- Working with US EPA and other stakeholders on certification/best management practices for electronics recyclers

## Industry Successes

- Have been involved in the proper recovery and management of _well over two billion pounds_ of used electronics products
- Use significant quantities of recycled materials, including glass, metals and plastics, in new generations of their products
- Creates markets for recycled materials

## Industry Successes

- Manufacturers are involved in numerous recycling efforts:
- Individual company programs
- Partnerships with U.S. EPA, state and local governments, retailers, recyclers and charities

## Industry Successes

- High-profile companies are measuring themselves (and are being measured) against the triple bottom line:  economic, environmental and social:
- The Global 100 (Most Sustainable Corporations in the World)
- Dow Jones Sustainability Index
- FTSE4Good Index (Financial Times Sustainability Index)

## Current U.S. Recycling Laws

- _NEW STATUTES_
- Minnesota
- Texas
- Oregon
- Connecticut
- North Carolina

- _EXISTING LAWS_
- California
- Maine
- Maryland
- Washington

## Other Potential Jurisdictions

- Pennsylvania
- Rhode Island
- Vermont
- Wisconsin

- Michigan
- Massachusetts
- New Mexico
- New York
- New York City

- Others?

## Recycling Challenges

- Inefficient Patchwork
- Lack of consistent scope (i.e, covered products, screen size, exemptions)
- Varying definitions/interpretations (i.e., portable computer, brand owner)
- Different metrics (i.e., return share v. market share, ESM program requirements)

## Recycling Challenges

- Inefficient Patchwork (continued)
- Orphan issue
- CRT Rule/interstate transport issue
- Numerous inconsistent registration and record-keeping requirements

## Conclusions

- While design is the purview of manufacturers, electronics reuse and recycling requires the participation and involvement of all major institutional players, plus citizens.
- Concerted and coordinated action from all players is required to properly and fairly resolve the electronics recycling challenge.

## Conclusions

- Regulatory consistency is key to:
- Ensuring that products are properly reused and recycled
- Making sure that programs are efficient and cost-effective
- Preserving market balance
- Avoiding consumer confusion
- Providing recycling opportunities to consumers

## Contact Information

- Rick Goss
- Vice President of Environment & Sustainability
- Information Technology Industry Council
- 202-626-5724
- _[rgoss@itic.org](mailto:rgoss@itic.org)_