Industry s impact on the environment

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1 Lifecycle design & stewardship P.S.Narayan Vice President & Head - Sustainability 1 Industry s impact on the environment Make Use Dispose Energy Metals Carbon Use of constrained resources Disruption of biogeophysic al cycles Water Land Biomass Nitrogen and Phosphorus Energy Use of constrained resources Pollution and disruption of cycles Health and Safety hazards Water Toxic pollution of land, air and water Appropriation of scarce land resources 2

2 The elements of a production cycle Resources Energy Labor Land Energy Water Labor Land Energy Labor Land Matls Energy Water Labor Land Energy Labor Energy, Water Land Energy Labor Processes Product Design Extracti on Inbound Logistics Multi- Stage Manufg Outbound logistics Product Use EOL Disposal Generated Waste 3 Lifecycle design frameworks 4

3 Open Loop Vs Closed Loop systems 5 6

4 The Lifecycle Assessment framework (LCA) 7 Lifecycle Analysis Alife-cycle assessment(lca, also known aslife-cycle analysisis a technique to assess environmental impacts associated with all the stages of a product's life from-cradle-tograve (i.e., from raw material extraction through materials processing, manufacture, distribution, use, repair and maintenance, and disposal or recycling). Attributional LCA: Seeks to establish the burdens associated with the production and use of a product, or with a specific service or process, at a point in time (typically the recent past) Consequential LCA: Seeks to identify the future environmental consequences of a decision or a proposed change in a system under study i.e. the market and economic implications of a decision may have to be taken into account. Social LCA: a different approach to life cycle thinking intended to assess social implications or potential impacts. Social LCA should be considered as an approach that is complementary to environmental LCA. 8

5 Design for Environment 9 Green Production 10

6 The Product-in-Use 11 End of Life processing 12

7 13 Cradle to Cradle (C2C) C2C is a regenerative design approach that is modeled on nature s processes involved in safe, healthy metabolisms ; Simply put, it is a holistic industrial, economic and social framework that seeks to create products and systems that are not just efficientbut waste-free Other variants : Cradle-to-Grave, Cradle-to-Gate, Well-to-Wheel Technical Nutrients Biological Nutrients Material health Energy and Water footprint Non-toxic, non-harmful materials that can be used in continuous cycles without any negative environmental impact Can be disposed of in any natural environment where they decompose in the soil and provide food for small life forms Minimize usage of hazardous, non-recyclable substances in the product design Minimize the negative environmental impact of energy and water usage in the product life cycle 14

8 Cradle to Cradle Certification.(i) 15 Cradle to Cradle Certification.(ii) 16

9 Challenges to Lifecycle stewardship The Great Chemical Stew: Difficult to segregate materials at end of life for further disposal The Great Chemical Unknown : Most synthetic chemicals are yet tobe tested for health and safety impacts Clean Energy footprint is still in a nascent stage 7 to 25% of national electricity consumptions ; large scale availability for production systems is a question mark With some exceptions, most industrial products today do not lendthemselves well to upcycling or reuse i.e. the usage of biological nutrients in electronic products can, at best, be a small proportion of the overall product 17 The Great Chemical Unknown Only a tiny fraction of the compounds around us have been testedfor safety Chemicals used by U.S. consumers and industry: 50,000 Tested: 300 Restricted: 5 18

10 Case study of the electronics industry 19 Salient characteristics of the electronics industry Short, continuous innovation cycles -Makes modular design and reusability a big challenge - Results in frequent improvements in certain areas e.g. energy efficiency - Makes reverse logistics that much more complex Geographical ly dispersed supply chain - Aligning multiple stakeholders on common goal requires enormous management attention - Many countries have sensitive geopolitical dimensions e.g. Conflict minerals 10s and 100s of miniaturized components -Achieving forward compatibility a huge challenge 20

11 The environmental impact of the electronics ecosystem Primary mining for metals In-Use e-waste emissions Tertiary e-waste emissions Considerable land required ;Significant quanta of waste water, sulfur dioxide and GHG emissions from mining Data centers contribute to significant energy consumption and GHG emissions ; One estimate points to more than 30% of lifecycle emissions during the use stage Hazardous reaction products as a result of improper treatment : Dioxins, Furans formed by incineration of plastics etc Hazardous substances used during recycling and that get released due to improper handling : Cyanide & other leaching agents 21 Results of a Korean computer industry study * Legend: Abiotic depletion (ADP), Global warming (GWP), Ecotoxicity (ET), Human toxicity (HT), Acidification (Acid), Depletion of the stratospheric zone (ODP), Photooxidant formation (POCP), and Eutrophication (Eut) 22

12 The challenges and opportunities in e-waste The chemical stew Value recovered Modern electronic components contain up to 60 elements e.g. Mobile phones contain 40 periodic table elements may of these are precious or hazardous or both, necessitating safe processing and recycling. Many of these are found in the Printed Circuit Board (PCB) where they are fabricated together on a real estate that typically does not exceed millimeters E-waste recycling is important because of the presence of so many precious metals ; even a 10% recycling is equivalent to USD 5 Bn saved Pollution avoided Recovery of metals can help avoid the negative environmental impact of mining ; as well as EOL emissions and land pollution 23 Metal content of a mobile phone 24

13 The value of recovered metal Estimated annual monetary value of metals used in electrical and electronic equipment : USD 45.4 Bn ( 2007) 25 CO2 emissions from the mining of metals in electronics 26

14 Wipro s lifecycle approach 27 Wipro computers Design to Disposal CHEMICALS MANAGEMENT ENERGY EFFICIENCY E-WASTE MANAGEMENT Total RoHS compliance ( EU ROHS directive) 21 toxic chemicals eliminated in next phase. Phase out of PVC and BFRs,. Steps in progress in eliminating Beryllium,Antimony and phthalates Energy Star 5 rating for 100% of product range. Alignment with recent BEE (Bureau of energy efficiency ) Energy label requirements. A structured e- waste process arrangement 18 collection centers across India 67% increase in quantum of e-waste processed over the last 2 years a total of 651 tonnes processed since inception in

15 Elimination of Toxics at Wipro First RoHS compliant Desktop and Laptop models 99.99% RoHS complianc e on all desktop/ laptop models Beyond RoHS : 1 st PVC and BFR model introduced Elimination of Beryllium and Antimony 2007 Early Designing out toxics S. No. Permissible Quantity (PPM) Permissible Quantity (PPM) Wipro Strategy 1 Polychlorobiphenyls (PCB) 1000 Banned 2 Refractory Ceramic Fibers Restricted Banned 3 Asbestos and its compounds Restricted Banned 4 Azo dyes/colorants 100 Banned 5 Ozone depleting substances (Class I & Class II CFCs and HCFCs) Restricted Banned 6 Nickel and its components 1000 Banned 7 Mineral Wool Restricted Banned 8 Lead and its compounds 1000 ROHs Directive compliance 9 Cadmium 100 ROHs Directive compliance 10 Chromium IV 1000 ROHs Directive compliance 11 Mercury 1000 ROHs Directive compliance 12 Polybrominated Biphenyl (PBB) 1000 ROHs Directive compliance 13 Polybrominated Diphenyl Ether (PBDE) 1000 ROHs Directive compliance 14 Polyvinyl Chloride (PVC) Restricted Eliminated in Jan Brominated Flame Retardants Restricted Eliminated in Jan Phthalates 1000 Elimination by Short chain Chloro Paraffin, Alkanes 1000 Control within Limits 18 Antimony and its compounds 1000 Elimination by Beryllium and its compounds 1000 Elimination by Cadmium Oxide 1000 Control within Limits 21 Octabromo diphenyl ether (OBDE) 1000 Control within Limits 30

16 RoHS compliance has required Wipro to collaborate closely with its vendors in China and India ; the journey has been gradual with a step by step increase in supplier capability Vendor Summary w.r.t ROHS compliance Classific ation No. of Supplier s Meeting ROHS Norms %age Vendor Imports % Local % 31 Extended footprint of Wipro computers Operational Supply Chain GHG footprint : 4400 tco2 e Water footprint : m3 Waste generation : 25 m tons 32

17 Wipro s E-Waste journey First collection center set up Wipro adopted the European standard, WEEE 18 direct and 300 authorized collection centers Works with only certified e-waste processing firms ( Attero) Wipro Green Computers : Some design principles and milestones Avoid use of substances in its products that could seriously harm the environment or human health. Follow precautionary principle in this regard Invest in energy efficiency ahead of time ; the returns are realand justifiable, both for the manufacturer and the user Adopt a strong extended producer responsibility (EPR ) approach for End-of- Life (EOL) processing Develop a dynamic of constant collaboration with suppliers so that a continuous improvement cycle is set in motion Do not pass on costs to the customer to the maximum extent possible 34

18 Wipro Green Computing milestones First product of Indian Origin to be ROHS compliant First in India to get for Energy Star 5.0 certification First product of Indian Origin to eliminate PVC & BFR from products Awarded by ELCINA for Environment Management Systems in 2006 for achieving Top-2 position Among the leading players to get the BEE (Bureau of Energy efficiency) qualification for Notebooks Consistently rated among the Top2 in the world for the Greener Electronics brand by Greenpeace. 35 Some concluding thoughts on the long journey ahead From Linear to Circular Will require all major stakeholders designers, manufacturers, recyclers, government to come together ; but the benefits can be enormous in terms of materials and cost savings From the Many to a few -Number of components will need to reduce in products like computers and telecom equipment so as to lessen the burden on modular design and logistics Simplify e-waste legislation -In its current state, the e-waste law in India is needlessly cumbersome and bureaucratic ; further, the informal sector is not addressed -The law must reduce unnecessary paperwork -Facilitate the involvement of government investment along with that of the private sector e.g. joint collection centers for CFLs 36

19 Thank you 37