# Presentation: 899038

## Staples/PSI/EPAPlug IntoeCycling PilotRetailer Conference CallOctober 20, 2005

## Pilot Goal & Objectives

- Share responsibility for recycling products that Staples sells.
- Create a sustainable business model for long-term electronics collection and recycling.
- Test reverse distribution for collecting electronics.
- Measure cost effectiveness, logical efficiencies, and customer response to the designed collection system.
- Determine if and how program could be rolled out nationwide.

## Why did Staples Initiate Project?

- Fit with business model to provide collection service for products they sell:
- Toner cartridges
- Rechargeable batteries
- Cell phones
- Computer equipment
- Customer service/business opportunity
- Distinguished Staples brand/loyalty

## Program Design

- 27 ***retail*** stores in 5 New England states
- 14 ***commercial*** clients in 3 New England states
- May 29 – July 11, 2004 (6 weeks)
- Accepted electronics are computers (including all components), printers, scanners, fax machines and desktop copiers
- Recycling free to customers
- Minimum publicity – ramp up over time

## Retail Collection

- 1. Home Customer
- 2. Retail Store
- 3. Distribution Center (CT)
- 4. Envirocycle (PA)

**1.**

**2.**

**3****.**

**4****.**

## Retail Collection

- Customers bring used electronics to one of 27 stores in pilot area
- Customers place electronics into gaylord box and fill out data form
- Electronics treated as returned product
- packaged and backhauled on Staples trucks to DC and then to recycler
- NO Cost to recycle.

## Commercial Client Collection

- 1. Corporate Client
- 2. Transportation Hub
- 3. Fulfillment Center (CT)
- 4. Recycler (PA)

**1****.**

**3.**

**4.**

**2.**

## Commercial Client Collection

- 18 businesses selected to participate
- Large and small
- Hi-tech users and those not technology driven
- Willing to test service
- Electronics recycling service ordered with other purchases (no charge for recycling)
- Electronics picked up when delivery was made or special collection – scheduled pickups
- No Cost involved

## Value to Staples

- Reinforces commitment to sustainable business development
- Extends environmental footprint
- Extends environmental responsibility both up and down the supply chain
- Build long term equity in Staples brand

## Lessons Learned:  Retail Collection

- Program was logistically feasible
- Program was successful
- 65% of surveyed Staples’ customers were willing to pay for computer recycling
- Many computer brands returned from non-participating companies
- Expect business equipment at retail collection
- More local publicity more equipment collected

## Next Steps

- Staples has interest in expanding program.
- Staples began ongoing program in 14 Seattle area stores in fall 2005.
- Staples evaluating other markets.
- Staples evaluating continuing the commercial collection program in specific markets.

## Recommendations for Retail Collections

- Staples pilot as ONE part of comprehensive collection/recycling infrastructure.
- Treat used computers like a return.
- Charge a recycling fee until national financing system developed – size it to account for full recycling cost (no manufacture reliance).
- Enhance data security to allow for reuse
- Seek standardized regulatory requirements
- Ongoing Program Promotion

## Is the Project Transferable?

- Shows viability to use existing retail infrastructure for collections.
- One part of comprehensive system.
- Reduces pressure on government to be sole collection point.
- Added convenience to consumers.
- More reuse and recycling potential.
- There is a cost!

## Project Results

**Partnerships and Roles**
**Contact Information**

## Costs by Phase and Funding Sources

| Who Paid | Project Phase | Cost |
| --- | --- | --- |
| U.S. EPA | Project Implementation/Evaluation | $46,541 |
| Staples | Project Design | $17,000 |
|  | Handling/Collection – Retail (northeast region) | $1,870 |
|  | Transportation to DC and Envirocycle (northeast region) | $11,355 |
|  | Delivery of Pallets – Commercial (northeast region) | $72 |
|  | Pallet Pick Up/Delivery To FC and Envirocycle – Commercial (northeast region) | $1,044 |
|  | Promotion, Staff training, Administrative Staff | $7,030 |
| Manufacturers | Recycling | $8,520* |
| TOTAL COST |   | $93,432  |
|  | Envirocyble’s costs for this pilot project (7.4 cents per pound, on average) were approximately one-third the market rate (about 20 cents per pound). Bolded items have been used to calculate the cost per pound.
 |  |

**Costs by Phase and ****Funding Sources**

## Collection Summary All Equipment

| Product | Number Of Units | Pounds | Cost* |
| --- | --- | --- | --- |
| Computer Monitors | 1,642 | 62,396 | $6,568.00 |
| CPUs | 1,076 | 24,748 | $0 |
| Small Peripherals | 649 | 10,386 | $727.00 |
| Printers/MFDs/Fax/Desktop Copiers/Scanners | 1,089 | 8,843 | $619.01 |
| Laptops | 66 | 987 | $69.09 |
| SUBTOTAL — COMPUTER EQUIPMENT | 4,522 | 107,360 | $7,983.10 |
| Audio/Visual Equipment | 645 | 4,516 | $316.12 |
| Other | 90 | 3,152 | $220.64 |
| TOTAL – ALL EQUIPMENT
$4.00/monitor; no charge for CPUs; $.07/pound for all other products
 | 5,257 | 115,028 | $8,519.86*
 |

## Pilot Project Partnership

-   Apple
-   Brother
-   Dell
-   Epson
-   HP

-   Intel
-   Lexmark
-   Panasonic
-   Sharp
-   Sony

-   Signed MOU with Staples
-   Paid for recycling costs – their product and portion of
-      non-participants

## Pilot Project Partnership

- State environmental agencies
- Connecticut
- Maine
- Massachusetts
- New Hampshire
- Rhode Island
- Local government agencies

## Pilot Project Partnership

- Staples
- Covered project design costs.
- Covered collection, transportation, and promotion costs.
- U.S. EPA
- Innovations grant to PSI – covered implementation costs
- Part of Plug Into eCycling Pilot Projects
- Promotion/publicity
- Envirocycle
- Recycler
- Charged below-market processing cost

## PSI Role in Pilot

- Designed pilot project
- Tracked implementation
- Assisted in data collection, analysis, and reporting
- Evaluated pilot
- Made recommendations for national program expansion

## Project Contacts

- Scott Cassel
- PSI Executive Director
- 617-236-4855  _[scott@productstewardship.us](mailto:scott@productstewardship.us)__ _
- Mark Buckley
- Vice President Environmental Affairs, Staples, Inc.
- 508-253-0510  _[Mark.buckley@staples.com](mailto:Mark.buckley@staples.com)__ _
- Christine Beling
- US Environmental Protection Agency-New England
- 617-918-1792  _[Beling.christine@epa.gov](mailto:Beling.christine@epa.gov)__ _
- _[www.productstewardship.us/pilot_takeback_staples.htm](http://www.productstewardship.us/pilot_takeback_staples.htm)__ _