Reuse and Recycling Metric Electronics Reuse Conference Nashville, TN October 29, 2018

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1 Reuse and Recycling Metric Electronics Reuse Conference Nashville, TN October 29, 2018 Project Summary Phase 2 Lisa Dender, IBM Co-leader Wayne Rifer, GEC (Emeritus) Co-leader Tom Okrasinski, Nokia Ken Wolenski, Nokia Cintia Gates, Microsoft Nicholas Jackson, METech Mark Schaffer, inemi

2 Introduction Product Recycling & Reuse Metric (R&RM) If you can t measure it, you can t manage it Consider that: Product Designers select the material and make the product design choices Product Recyclers and Recovery Agents control where and how and with what technology e-waste is handled The Market dictates what materials are actually recycled based on the economic value (Net Profit) None of these actors are inter-connected despite choices made at each step of the process dramatically affecting the other players R&RM Project Phase 2 Objectives: Develop a scoring system or methodology to improve the performance of the Electronics Value Recovery (EVR) process Identify Product-Related Cost Factors influencing economic feasibility of reuse and recycling Develop a system that can be applied to different electronic products Desired Outcome: A simple set of metric(s) that includes the calculations, scoring and value factors, tables (estimated data if actual data is not available) that take into consideration technology forecasts, price forecasts, design forecasts Keep It SIMPLE and USEFUL Inform design choices, alert recovery agents, facilitate the market in returning value

3 Rationale The metric or tool has to be simple by design or it won t be used Calculations and Tool(s) have to be straight-forward and transparent Metric has to highlight the challenges and consistently deliver a useable answer (i.e. it can t be random, meaningless numbers) Examples: A beautifully designed, modular, easy to recycle product in a region with no recycle capability = Poor Outcome A worst-case design in a region with outstanding recycle and recovery capabilities = Better Outcome A beautifully designed, modular, easy to recycle product in a region with outstanding recycle capability = Best Outcome. The Best Outcome is achieved when the product designers and the recycle technology work together to return useful material back to the market.

4 The Challenge Non-Linear and Looping Flow of e-waste around the world How can we measure the performance of the VALUE CHAIN for a global electronics use and recovery process?

5 The Strategy Three Main Actors in the Electronics Value Recovery (EVR) Chain Product Designer Recovery Industry Return to Market

6 The Factors Three Interlocking Features Material Choice Ease of Liberation Awareness? Available Recovery Technology Product Designer Recovery Industry Return to Market

7 Product Value Recovery Proposed R&RM tool three key features that affect value recovery: Material Choice (MC) Product Recycling & Reuse Metric (R&RM) Ease of Liberation (EoLib) Available Recovery Technology (ART) Material Choice (MC): Major modeling attribute à material efficiency Use eco-design aspects to understand material efficiency implications and consequential impact on value recovery at end-of-life Attributes from European Commission s report on material efficiency (BIO Intelligence Service S.A.S.): Quantity of materials used in product life cycle à critical raw materials; material input service Environmental impact of materials over life cycle à high / medium / low priority materials Recoverability, reusability, recyclability of materials à per EU WEEE Directive Origin of materials à recycled content of product s materials Reparability and durability of product and its components à product lifetime / extension; warranty

8 Product Value Recovery Ease of Liberation (EoLib): Designer evaluates ease of removing key components / liberating materials for pure stream recycling General information on product type / size / retail value Easy removal of key components: Cabinet, chassis, frame Printed Wiring Boards (PWBs) Easy separation of key materials: Metals Polymerics (plastics) Hazardous materials in parts (at end of life) Ease of liberation based on recycling industry data: Time of separation / removal Type / number of tools required Special training required Information available on parts / materials location and removal Graphics courtesy of Nokia

9 Product Value Recovery Product Recycling & Reuse Metric (R&RM) Available Recovery Technology (ART): Based on current and forecasted regional / country ICT product value recovery capability Capability to collect, transform, and return e-waste value to market à correlated to region s / country s economic health Proof of performance Factors used to rank a region s / country s ART: Regulatory and infrastructure (capability) Economic or development (investment potential) Electronics recycling rate (performance) Two indicators currently available for regions / countries: Electronics recycling rate e.g. data available from OECD Environment at a Glance 2015 Environmental Indicators Environmental Regulatory Regime Index (ERRI) based on National Environmental Performance: an empirical analysis of country environmental policy results and determinants (Yale University - Daniel Esty, et al) 2001

10 R&RM Tool development Product Recycling & Reuse Metric (R&RM) R&RM tool (version 1): Proof of Concept Uses MS Excel Workbook / Worksheets to separate input categories: Graphical input / output worksheets built upon the 3 R&RM categories: MC, EoLib and ART Data connectivity, links and interfacing throughout Workbook Allows for logical operations to check inputs and provide feedback to user depending on the question and other interrelated input All input fields provided with simple drop-down lists for easy input Additional Worksheets built-in for: Hazardous substances regulations and individual substances of concern determination (e.g. NGOs - SIN List, Prop 65) Recyclability and recovery determinations based on formulae from standards Results provided adjacent to each input section so designer can see resulting impacts, do what if scenarios: Contributions from categories weighted: ~ 30% MC; 30% EoLib; 40% ART based on inemi research collaboration w/ University of Tennessee Business School project Sparklines and percent of total range scores also provided gives designer better assessment and visual feedback Governmental incentives / drivers section interactive with results provides further feedback to companies on policy choices that support health of entire value chain (based on European Union Circular Economy reports)

11 R&RM Tool (version 1) - Screenshots Product Summary Page: Category subscores Product grand score Individual sparklines & percent of total range Product Recycling & Reuse Metric (R&RM) Max score achievable: 100% Min score achievable: -50%

12 R&RM Tool (version 1) - Screenshots Material Choice (MC) Worksheet: Four subsections: Quantity / efficiency Eco-impact Origin & reuse Lifetime & warranty Drop-down lists for easy input Weightings visible for each entry Immediate scoring based on line item responses Links to separate worksheets Hazardous substances determination Recyclability / recoverability formulae MC category score MC Sparkline & percent of total scoring range Product Recycling & Reuse Metric (R&RM)

13 R&RM Tool (version 1) - Screenshots Ease of Liberation (EoLib) Worksheet: Seven subsections: General features Batteries Chassis / cabinets Parts with hazardous materials Parts repair & upgrade Materials separation Valuable components separation Drop-down lists for easy input Weightings visible for each entry Immediate scoring based on line item responses EoLib category score EoLib Sparkline & percent of total scoring range

14 R&RM Tool (version 1) - Screenshots Available Recovery Technology (ART) Worksheet: One subsection: Product Locational Sales Drop-down lists for easy input Immediate scoring based on line item responses ART category score ART Sparkline & percent of total scoring range

15 R&RM Tool (version 1) - Screenshots ART Regional / Country Basis Sheet: Recycling rates data available from OECD Environment at a Glance 2015 OECD Indicators Environmental Regulatory Regime Index (ERRI) based on National Environmental Performance: an empirical analysis of country environmental policy results and determinants (Yale University - Daniel Esty, et al) Recycle Rate vs Country GDP per capita (2016) ERRI vs Country GDP per capita (2000)

16 inemi R&RM Project Conclusion / Future Work inemi R&RM Project (Phase 2) will conclude at end of 2018: Project wrap-up report / presentation in November 2018 to inemi members / entities Currently presenting the results and model in a broad stakeholders Playback soliciting feedback, support, and ideas for a follow on phase. Project report and R&RM tool available to inemi members / entities R&RM Project (Phase 3) being planned: Continuation of inemi consortium; SOW for inemi members / public invite Nov 2018; start of work 1Q 2019 Objective refine the tool and possibly work with Universities to automate or improve the actual tool and the supporting datasets Proposal / considerations: ART: Electronics recycling rate; Environmental Regulatory Regime Index (ERRI) potential research / post doc work with Dr. Daniel Esty at Yale University EoLib: additional research / dataset development for product related info on: Batteries; Chassis / Cabinets; Parts with Hazardous Materials; Parts Repair & Upgrade; Materials Separation; Valuable Components Separation MC: advanced calculation worksheet for recyclability / recoverability determination R&RM tool (version 2) additional enhancements based on initial user / designer feedback suggestions For additional project information, go to:

17 Acknowledgements Product Recycling & Reuse Metric (R&RM) University of Tennessee, Knoxville Dr Randy Bradley PhD, Assistant Professor of Information Systems and Supply Chain Management, Haslam College of Business Student Researchers who participated in the Spring 2018 Supply Chain Information Technology Program Management Classes as they performed ~4000 hours of research on various measurement methods, data sets and conducted preliminary reviews of availability of recovery technology around the world. We received 18 Executive Review on this project from these teams. Yale Center for Environmental Law and Policy and Yale Center for Business and Environment Daniel Esty, JD, Director and Author of the National Environmental Performance: an empirical analysis of country environmental policy results and determinants (Yale University - Daniel Esty, et al) 2001 for his active participation and dialogs in the usefulness and upgradeability of the ERRI. Jon Powell, PhD, P.E for his support in defining updates to the ART part of the model including possible development of an Electronics Value Recovery Index (EVRI).

18 Thank You

19 Support Slides/Demonstration

20 R&RM Tool (version 1) - Demonstration R&RM tool (version 1): 20

21 R&RM Tool (version 1) - Screenshots Priority Material Ranking Basis Sheet: Built-in drop-down lists for: High priority materials Medium priority materials Low priority materials Referenced from the EU Commission Report by Bio Intelligence Service S.A.S. (2011) 21

22 R&RM Tool (version 1) - Screenshots Hazardous Substances Lookup Table Basis Sheet: Allows designer to determine extent / types of hazardous materials in components Can perform search on substance / CAS No., expected usage in ICT products, regulatory requirements source (e.g. REACH, EU RoHS, POP, ODS, etc.) 22

23 R&RM Tool (version 1) - Screenshots Government Circular Economy Drivers Support Sheet provides feedback and advice to companies regarding: Better product design Creating incentives Improving production process Innovative industrial processes 23

24 Background inemi Project Phase 1 Project initiated via inemi to assess product circular economic value à IBM, Microsoft, Green Electronics Council Phase 1 ( ): review of existing R&RM revealed limited means of assessing product recovery value (Recyclability, Reusability, Reparability and Refurbish-ability or 4Rs ): IEC TR 62635: mass-based metric standard defines calculations, terms, methodology for recyclability ifixit scorecard: ICT products repair manuals (based on a measure of practical disassembly) Others: Blue Angel; Cradle to Cradle Certified Standard; IEEE 1680.x (1,2,3); ULE 110; ISO 22628; PAS 141; MEErP / EU Eco-design Directive No current standards for 4Rs Phase 1 recommendations: Develop relative scoring system that product designers can use as a guide for their designs - examples: Ø Ø Negative scoring for hazardous materials inclusion Positive scoring for designs providing easy, tool-free parts separation Collect regional recovery rates and recycling infrastructure data shows 4Rs infrastructure capability and actual rates for ICT products 24