E-Waste: A New Business Opportunity

As reviewed in a recent TriplePundit article, recycling e-waste is an increasingly a lucrative business opportunity. According to the Consumer Electronics Association in 2012 global spending on consumer electronics will surpass $1 trillion for the first time. The problem is that consumers upgrade their “old” electronics every six to twelve months as opposed to every few years as in the past. This translates to 2.5 million tons of toxic electronic waste (e-waste) that ends up in landfills, and according to the U.S. Environmental Protection Agency only 25 percent of this gets recycled. There is no question that e-waste is harmful to our environment. It contains toxic chemicals including lead, mercury, arsenic, and cadmium, which threaten and contaminate the water we drink and the air we breathe.

To help address this problem and seize on a lucrative business opportunity various companies are now getting involved with e-waste recycling. According to the Institute of Scrap Recycling Industries (ISRI), the US e-waste recycling industry generates $5 billion in revenue each year, up from less than $1 billion in 2002.

In a recent TriplePundit interview, CEO David Edmondson spoke about how eRecyclingCorps saved one manufacturer $150 million in the first 10.5 months simply by refurbishing used mobile phones and giving them to customers who lose their phones, which saves the company money from providing brand new phones. 

US households buy the largest percentage of electronics in the market but account for only 26 percent of the electronics recycling market. As reported in a recent study by ISRI part of the reason for these low e-waste recycling rates are attributable to barriers for consumers.To help increase recycling rates efforts must be made to address these barriers. Growth in e-waste recycling depends on making it more convenient and worthwhile for consumers to drop-off their unused electronics.

To address these barriers retailers are getting involved. Best Buy is one example of a retailer that is profiting from reducing barriers to consumer electronic take-back programs. As reported in a recent GreenBiz.com article, Best Buy’s Senior Director of Environmental Sustainability confirmed that its Trade-In Program, which launched back in 2007, is finally profitable but it took time to transform the potentially cost-intensive problem of collecting e-waste into a cost-effective operation.

Best Buy has been able to generate two separate revenue streams: 1) Best Buy receives a percentage of the resold materials that have been recycled from the old electronics collected at retail stores – all done by the e-waste recyclers; and 2) Best Buy collects money from large consumer electronics manufacturers mostly as a result of state legislations that require these manufacturers to take responsibility for safe disposal of their products.

In a recent story in Adweek, John Shegerian, CEO of Electronic Recyclers International, which handles Best Buy’s e-waste recycling from the western states, added that, “40 [to] 60 million people have dropped off [their used] electronics and over 50 percent of those people bought something new.” This means that there could be a third revenue stream because customers who receive cash incentives from dropping off their unused electronics are more likely to spend money on other products as well. If we look at Best Buy as an example, we see that there is value in e-waste from a consumer electronics retailer point of view.

Right now there are 25 US states with laws requiring electronic waste to be recycled, and 23 of which require the manufacturer to take responsibility for safe disposal of their products. With the growing number of states requiring manufacturers to be responsible for the end product, manufacturers now have added pressure to recycle e-waste. Therefore, there is an opportunity for retail stores like Best Buy, Staples, Target and Wal-Mart, which specifically already have consumer electronic takeback programs, to capitalize on this added pressure by reducing the barriers for consumers to drop-off their old electronics.

We can see here that manufacturers can save money by being responsible environmental stewards. Eventually we can expect that manufacturers will design more sustainable products and get more involved with the entire life cycle of the products they produce. In the interim cooperative efforts between retailers and manufacturers can play an important role in minimizing e-waste.

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Video: Walmart's Sustainability Efforts

Walmart's sustainability efforts are making a positive impact on a global scale. These efforts are evident from the products they sell to the packaging, to the way those products are used by their customers. Sustainability is inextricably embedded within their overall business strategy and carbon reduction is a key element of their sustainability program.

Walmart's goals are to: Be supplied 100 percent by renewable energy; Create zero waste; and Sell products that sustain people and the environment. They have driven specific strategies that will reduce risks and increase opportunities associated with carbon for their company, their supply chain, and their customers. Their GHG reduction targets were set in order to increase their efficiency, lower their costs, save their customers money, and provide for positive social and environmental impacts. Their scope ensures significance.

By focusing on emissions reduction since 2005, they have achieved an annual savings rate in excess of $150 million compared to that base year by increasing their efficiency in the use of electricity, natural gas, refrigerant and transportation fuels. By reducing their energy consumption now, they are better positioned for further savings should any proposed carbon legislation be enacted into law. Similarly, just as they found efficiencies within their own footprint, they realized the opportunity to help their supply chain find these same, or even greater, efficiencies that will lead to additional financial and environmental benefits.

Walmart has announced an aggressive goal to eliminate twenty million metric tons of GHGs from their global supply chain by the end of 2015. This represents one and a half times their anticipated cumulative carbon footprint growth over the next five years. That amount of carbon decrease, if all achieved from electricity use reduction in the U.S., would have an associated annual cost reduction in excess of $2.5 billion. There are many opportunities to reduce throughout the product life cycle from the sourcing of the raw materials, to the manufacturing of a product, to its transportation, and to how customers use it, dispose of it and recycle it.

On public policy engagement, Walmart is working with industry groups, NGO's, consultants, and members of Congress and their staffs in order to foster better communication and understanding on the issues, challenges, and potential impacts to their business and customers. These understandings allow them to continuously re-evaluate their progress and impacts and to refocus or redirect their efforts when needed.

© 2012, Richard Matthews. All rights reserved.

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TerraCycle Reach a Major Milestone in Non-Recyclable Waste Diversion

TerraCycle is a winning combination of environmentalism and free enterprise. The company has succeeded in diverting one million non-recyclable packages from landfills. TerraCycle is a company with a mission to "Eliminate the Idea of Waste®" by creating sustainable collection systems and end of life solutions for non-recyclable packaging and products.

TerraCycle created a free nationwide collection program in Canada that enabless consumers to raise money for their schools and communities by collecting material like drink pouches, cookie wrappers, yogurt pots, sandwich bags and candy wrappers. For every piece of waste collected, they donate 2 cents to a school or charity of choice.

TerraCycle was founded in the US by Toronto native Tom Szaky. After winning countless business plan contests, Tom dropped out of Princeton to pursue his dream of founding the world’s most environmentally friendly company. Seven years later, TerraCycle’s eco-friendly products have received a myriad of social and environmental accolades and are sold at major retailers like The Home Depot, Wal*Mart and Whole Foods Markets.

TerraCycle’s business plan and products made from waste received a Zerofootprint Seal of Approval, won The Home Depot’s Environmental Stewardship Award twice and recently won the 2007 Social Venture Network Innovation Award. Kool Aid has also offered their support for TerraCycle’s Drink Pouch Brigades and encourages recycling and upcycling of drink pouches.

As indicated in a recent company press release, the Canadian recycling brigade has reached a major milestone. On June 3rd 2011, the company reported that they had succeeded in diverting one million drink pouches. The ubiquitous drink pouches cannot be recycled through traditional programs. In the process of collecting these waste materials, TerraCycle has contributed over $20,000 to schools and non-profits.

Over 2,700 schools, non-profits and community groups have joined together across Canada to help collect the one million pieces of waste. Students, teachers and community members from communities across Canada are working together to help TerraCycle give new life to waste.

“It gives the students a chance to participate and see results for their actions. We can collect waste and get paid for it,” says Sandra Ross, parent volunteer at William S. Patterson P.S. in Clandeboye, Manitoba.

The collected material will be repurposed into a variety of environmentally responsible products ranging from pencil cases and tote bags to storage containers and park benches. Thier eco-friendly consumer products should be in stores within the next 6 to 12 months.

To mark the milestone of one million pouches collected, TerraCycle held an assembly and unveiled a special recycled prize at Dixon Grove Public School, in Toronto. The school is one of the country’s top collectors and a shining example of environmental commitment.

Their non-recylcable waste program not only diverts packaging from landfills, it engages students and adults in a fun, hands-on activity to encourage them to be more concerned about resource conservation and recycling.

TerraCycle has an innovative business model that should cause entrepreneurs and established businesses to stand up and take notice.

For more information go to the TerraCycle site.

© 2011, Richard Matthews. All rights reserved.

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New Year's Resolutions for a More Sustainable World in 2010

The beginning of the new decade is a good time make a resolution for a more sustainable world. During the holidays we collectively generate mountains of waste. According to the California Integrated Waste Management Board and Recycle Works, the US alone purchases over 2.6 billion holiday cards each year. (enough to fill a football field 10 stories high). Between Thanksgiving and the New Year, Americans throw out an extra million tons of trash each week (a 25% increase). In addition, 38,000 miles of ribbon are discarded each year–enough to tie a bow around the Earth.

Powerful improvements can be made through relatively simple business innovations and consumer decisions. Each year, 50 million Christmas trees are purchased in the U.S. and about 30 million go to the landfill. During the average 15 year life span of a fake Christmas tree, a real tree user will put about 1/2 ton of waste into landfills. Fake trees are even more destructive to the environment as they are made with polyvinyl chloride (or PVC, otherwise known as vinyl), one of the most environmentally offensive forms of non-renewable, petroleum-derived plastic. Fake Christmas trees are also know to have several carcinogens, including dioxin, ethylene dichloride and vinyl chloride. Fake trees also contain lead and other additives that have been linked to liver, kidney, neurological and reproductive system damage.

The most eco-friendly way to enjoy a Christmas tree is to buy a live tree with its roots intact from a local grower. As reviewed in a recent New York Times article, Scott Martin, a landscape designer in California, has established a business that rents living Christmas trees to LA homes using biodiesel trucks. After the holidays, the trees are picked up and planted on industrial properties.

The beginning of the new year is a good time to make green resolutions. Here are several suggestions:

Inform yourself about sustainable business
Raise awareness about sustainable business
Lobby your legislators on behalf of the green economy
Get a green degree
Get a green job
Invest in sustainable stock
Start a sustainable business
Make your existing business more sustainable

Whatever you resolve to do, find a way to get involved in the green economy. As consumers we can resolve to make more informed, responsible buying decisions. As entrepreneurs and business owners, we can make our businesses more sustainable by resolving to adopt the triple bottom line of planet, people and profits.

Other green business resolutions include incorporating sustainable principles into your business decisions. Supplying environmentally friendly products or services that replace the demand for non green products or services. Being greener than traditional competition and making an enduring commitment to environmental principles. (for more specific information on sustainable business frameworks and guidelines see ISO14001).

You can also follow THE GREEN MARKET and get updated, topical information delivered to your inbox, as well as gain access to the wealth of resources and tools in the Green Link Library.

Whether you are a business owner, entrepreneur or consumer, everyone can make sustainable resolutions for 2010.
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