Greening Electronics Purchasing Decisions End-of-Life and New Equipment

Greening Electronics Purchasing Decisions: End-of-Life and New Equipment Clean. Med Conference April 14, 2004 Anne Peters Gracestone, Inc.

How to “green” electronics purchase? • Change the bid language • Change the purchase terms – lease vs. buy • Drive manufacturer responsibility – require takeback of obsolete computers – consider reuse loop – ask for assurance of recycling of old equipment – impact toxicity, ergonomics, energy use, packaging etc. to reduce waste

What should you do? • Review storage & surplus practices • This affects you in two ways. – Buying new computers & electronics an opportunity to “green” them and thus reduce liability. – Buying “end-of-life” management services for org’s old electronic equipment. • data destruction • environmental matters - Ensure old equipment is recycled or managed in compliance as a Universal Waste

Storage Issues • Org removing 3, 000 PCs/yr can save $1 M/yr in storage & disposal $$. • Resale & recycle value of stored equipment depreciates 6 -10%/month. • Data sanitization should be done upon retirement, before storage or surplus. • Total destruction for data security wastes equipment with value. • < 3 -year old equipment has > reuse value

Surplus Issues • Surplusing has two risks: – Unauthorized release of secure data – Potential environmental liability from rebuilders buying lots of equipment & trashing what they don’t want your org. still holds downstream liability

Purchasing End-of-Life Recycling Services • What do they do to recycle? Reuse? • Can they help with logistics? • Do they offer data destruction? Methods? • Labor source? • Regulatory compliance? • Sound, ethical business practices? • Need for legitimating credential… (“Pledge”) • Involve local businesses, non-profits Then - set criteria that meets your goals.

Legitimate recyclers will: • Tell how they manage e-scrap. • Tell how they process e-scrap. • Document & monitor downstream markets (where components or devices go for reuse, recycling, or disposal). • Generally charge a fee for their services. • Comply with hazwaste requirements. • Disclose all labor practices.

Adding Recycling to New Computer Purchases. CASE STUDY: Why did Denver want to “green” its purchase of 8, 000 desktops? • Power of one. • Concern re CERCLA liability as old desktops are surplused, go through reuse cycle, & end up in Denver’s : own landfill. ned r n, Lea pio on s m • The light bulb as the IT Les cha a a ed and or ne r, vat. i managers “got it”. You nside g mot ion t i an pellin aniza • Den Purchasing is ‘green’ coomthe org r f

Research Phase • 2002: Emerging resources on this: – Silicon Valley Toxics Coalition – Materials For Future Foundation – Product Stewardship Institute – Northwest Product Stewardship Council - eco-labels – Center for a New American Dream : ned – Label websites r Lea n sso e Le – EPA EPP, Df. E ctiv ; use e olle . c rv ice ing cu all too N n c r lea web & the

Process with Purchasing & Do. IT • Determine IT & org. needs, preferences: – – – – – security & data destruction : ned r Lea end-of-life markets (prison, overseas) n te sso ara is. Le p contractual req’ts r se n th fo sk ngs o re-use criteria (addressed in ordinance) Ameeti EMS compliance & internal green goals life cycle cost of FPD vs. CRT d: rne Lea lease vs. purchase s al son ent es L tm WSCA-NASPO considerations par n. e terd ratio IT In pe disaster recovery needs t & each o n co me rn. T re labeling ocu to lea Pr s ant w. hem t

Led to RFI & Informal Vendor Meeting • Issued Request for Interest for “Greening” Denver’s Upcoming Purchase of Desktop and Laptop Computers – Questions for Vendors 10/4/02 – Disclosure about the bidders’ environmental policies, manufacturing process, product contents. – Product features: modularity; design for recycling; energy usage; eco-labeling. : ned – End-of-life management requirements. n Lear h hac so c Les hrs – Packaging and shipping. o MR E n. O , – Worker health and safety. A. sks ond. t a tes ne resp yo – Purchase vs. lease. ver ust e m If Ms OE

RFP: Environmental Criteria • Corporate environmental responsibility – EMS, ISO 14001 – Environmental Policy • Product take-back at end of life – with CCD monitoring capability – regulatory compliance ( downstream liability) – overseas markets only with CCD okay – takeback of current fleet

RFP: Environmental Criteria • Energy requirements • Product and packaging features – use of recycled materials – component labeling (aids EOL recycling) – 35% recycled packaging – reduce packaging quantities • 3 rd-party certification - Eco-labels

RFP: EOL Management Requirements • • State regulatory compliance (UWR) Costs broken out separately in proposals Assure CCD no parts end up in trash Use by nonprofit orgs assure good EOL Hope for cost savings from product value EPA ID # at any recycling facility : ned r Assure worker safety Lea n n sso tha et. e L re mo u’ll g No bad overseas markets for yo Ask think you

Weighting Evaluation Criteria • Environmental Concerns & EOL Pricing — 10% • Product Pricing — 50% • Product Line Lifecycle — 10 % • Continuity of Components — 10% • Product Evaluation — 20%

What Denver got in response • No vendor was 100% responsive to environmental criteria • Had to ask for more info on: – EOL management practices – Pricing for EOL services breakout – Authority to monitor OEM’s recycling vendor – Pricing for EOL services for current fleet

Ranking of vendors’ green pts. 4/03 d: rne. Lea end on s he Les in t s win e Pric

Denver took advantage of this • By summer, Dell was front-runner. • Dell’s community service to large public customers (San Diego “Digital Divide”) • Asked Dell to host recycle events (city residents only) for life of contract. • Got verbal agreement. : ed s n ar EM e • Didn’t end up in final n. L n. O. o e o in erve ss r contract language. Le su ing y s s re t th the p ep righ ities • City can bring its e-scrap. Ke do un to mm co

Dell’s takeback terms for Denver • By Dell Asset Recovery Services • $24/system or $3, 400/truckload – (24 pallets < $5/unit). – may be some credit to Denver • Denver palletizes & shrink-wraps. • Pickup at Denver-specified location, – 72 hrs. notice • Detailed record-keeping & tag removal – data destruction - but not guaranteed – Settlement Report & Certificate of Disposal

Lessons Learned: Summary Process • Get IT, Purchasing, & Environmental managers all involved early. • Get the most senior & political support in the organization as possible. • Establish evaluation criteria & weighting early. • Place cost of EOL services in Cost - 25% • 10% for other environmental criteria

Lessons Learned: Summary Content • Let OEMs know how important this is. Tie to other things. • It’s a risk management & cost issue. • Emphasize good takeback the most. • Increase emphasis on ROHS & WEEE compliance. If in Europe why not here? • Be realistic about budget constraints. • Push harder for OEM to absorb takeback costs.

Sample Desktop Purchase Criteria Weighting

Institutional Buying Power Public Sector Institutions • WSCA/NASPO RFP • State purchasing laws addressing green computers, evolving practices Private Sector GPOs • Adopt health care green procurement: www. hcwh. org/goinggreen

For more information: Anne Peters Gracestone, Inc. 303. 494. 4934 voice 303. 494. 4880 fax annep@indra. com

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