IT manufacturer perspective on hardware take-back law
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1 IT manufacturer perspective on hardware take-back law Meeting targets in the future based on US and EU experience Jeff Kuypers / Nov 5, 2013
2 Hewlett-Packard (HP) hardware take-back quick intro Examples of HP s commitment to managing used products Experienced HP has operated formal product takeback programs since 1987 Global HP offers used product management services, including recycling, in 70 countries Proactive HP is developing capabilities in emerging markets, such as East Africa Compliant Recycling Relevant for consumers HP has increased drop-off sites to over 3,700 throughout the US, regardless of whether laws require such programs 2
3 Situation: multiple state laws require manufacturers to meet volume targets (e.g., 80% of sales weight) Objective today: increase awareness regarding volume target sustainability concerns. We will: 1 Observe what is collected to meet US takeback targets 2 Tie a collection trend to impact on measuring future take-back performance Share parallels from Europe 3 Suggest new approaches, motivate thought RE measuring future performance 3
4 Example product mix, 2012 industry take-back Approx 89% TVs & monitors by weight 1 Overall estimate, mix of covered devices available to mfrs 11% Television Example states without volume caps (mfr programs must collect year-round) 8% WA 18% 74% 16% 73% Computer monitor 14% 9% CT 18% VT Other CE 78% 16% 66% 4
5 TV & monitor product mix: Mostly CRTs today; CRT monitor decline has begun 1 % CRT by weight monitors & TVs, WA state % 83% 95% M pounds of CRT monitors collected, WA WA state report, all OEM collections included TV Monitor Combined
6 credit cost Electronics recycling cost or value Approximate based on HP experience in US & EU 1 Relative cost / pound estimate CRT TV / MONITOR LCD TV / MONITOR DESKTOP PRINTER NOTEBOOK COMPUTER DESKTOP COMPUTER delivered to recycler with collection
7 Value leads to diversion from manufacturer programs Estimated % by weight of typical CEDs sold vs collected: (No CRTs) (95% CRTs) 2 CED = covered electronic device in law NOTE: TV peripherals not included omitted in most state laws, though sales may top covered PC peripherals* Products with recycling value diverted, harder for OEMs to get back 15% 2012 CED sales mix 2012 CED collection mix PC (desktop & portable) 6% 10% 5% PC peripherals 75% 89% Displays (TV & monitor) Products with recycling cost (e.g., CRTs) not diverted, easier for OEMs to get back * HP analysis of syndicated market research consumer sales data and high volume unit sales weights indicates TV peripheral sales (game console, video recorder / player, STBs, audio) was nearly 2X the weight of PC printers sold in the US in 2012.
8 Electronic equipment collection mix in EU ~ 40% electronic equipment is TVs & monitors; ~ 30% CRTs 2 Europe, compare 20% Televisions Computer monitors Other CE US (~89% TVs; ~85% CRTs) 11% 60% 20% 16% 73% 8
9 Europe: higher value mix, higher diversion (US future) 2 ~20% End user, used electronics ~10% ~35% ~35% Export (mainly reuse) Manufacturer collection (reported to mfr system) Private collection (not reported to manufacturer system) Waste bin Domestic treatment 9
10 Suggestions for further thought How to measure & manage volume performance in the future 3 Like EU direction, track data for all flows Recyclers to report all flows processed for both mfr and non-mfr sources Total collected is what state / jurisdiction uses to measure overall success Separate volume goals and penalties Measure costly (e.g. CRT-related devices) vs more valuable devices separately If not meeting goals for valuable devices, provide alternatives to monetary penalties on mfrs, such as: Validate or work to increase take-back public awareness, and/or Demonstrate reasonable accessibility of programs 10
11 Thank you
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