Sustainability and Environmental Management 2013 : Household E-Waste Take back Program Toshiba Asia Pacific Pte Ltd Environmental Management Lim Joo Peng Oct 23, 2013 2013 Toshiba Asia Pacific Pte Ltd
Outline Section 1 Toshiba s Response to WEEE regulations in SE Asia Significant challenge of e-waste and why does ewaste matters to us? Toshiba s group position on e-waste Recycling Response to emerging WEEE regulations in Asia and Australia Toshiba s recycling efforts and results in 2012 Section 2 Experience in Toshiba s ewaste implementation in Malaysia Overview of Toshiba voluntary e-waste takeback scheme What we have achieved so far? Learning Process : Issues and challenges ( Technical and behavioural mindset ) Section 3 Way Forward Next Steps what we are doing now 2
E-Waste - A Significant Challenge Volumes: Increasing sales of electronics, decreasing lifetimes App. 42 million tonnes e-waste generated worldwide Exports: As donations/2nd hand, often illegal Mainly to Asia (China, India, Pakistan, Vietnam), Africa (Nigeria & neighboring Western Africa, Northern Africa), Eastern Europe 28.10.2013 2013 TAPL 3 3
Waste Scavengers ( source: Thai PCD) Current practice 4
Common Issues with ICT / Home Appliance Irresponsible Disposal Improper handling and processing can cause environmental, health and safety issues, such as, but not limited to : Land, water and air pollution Impact to human health and safety; and Loss of valuable raw material, resulting in natural resource depletion and environmental degradation from additional raw material exploitation; Illegal import and export violates international environmental regulations; and Personal and business information security is threatened by potential leakages/loss of data stored in the equipment 5
The Scope of the Problem for HA appliances Bulky and difficult to recycle Hazardous waste Metal, plastic and glass Casing/ refrigerator shell 72 kgs metal 34 kgs plastic 5 kgs glass CFC 11 Foam Insulation: 0.45 kgs Used Oil (May be contaminated) 0.2 kgs CFC 12 Refrigerant: 0.23 kgs PCBs May be contained in Capacitor, small quantities Mercury containing components 0.001 kgs Source: EPA Ref. Innovation Norway 6
Why does this ewaste matter to Toshiba? There are many reasons that Toshiba should care about e-waste: Social Responsibility. Reusing and recycling these materials from end-of-life electronics conserves our natural resources and avoids air and water pollution, as well as greenhouse gas emissions that are caused by manufacturing new products. Legal Responsibility. Many Toshiba activities dispose of e-waste during the course of their activities. It is important to abide by all existing country and International laws. 2013 TAPL 7
Toshiba Group Position on e-waste Recycling Toshiba Group believes that a successful recycling system is contingent upon society and the infrastructure that exists in that society. Importantly, Toshiba believes that to maximize recycling, associated costs placed on the general public should be minimal. Accordingly, the development of recycling systems should take into account national synergies -- including the formation of partnerships or joint efforts -- which can increase efficiencies, drive costs out of recycling systems and lead to increased rates of recycling. http://www.toshiba.co.jp/env/en/industry/recycled.htm 8
Toshiba s Promotion of Global Recycling of End-of-life Products In order to ensure efficient use of resources and appropriate treatment of hazardous substances, in accordance with recycling regulations in each country and territory of the world, Toshiba Group is promoting the collection and recycling of products that customers have discontinued use of. The Group promotes collection and recycling of end-of-life products while striving to minimize collection and recycling costs as it complies with each country s recycling scheme. In Japan, in addition to products covered by the Act on the Recycling of Specified Kinds of Home Appliances, the Act on the Promotion of Effective Utilization of Resources, and other relevant laws, it has established a unique scheme to collect medical equipment, elevators, MFP/POS systems, and other products. Toshiba Group also responds appropriately to the Directive on Waste Electric and Electronic Equipment (WEEE) in Europe and state laws in the United States. Furthermore, it is preparing to respond appropriately to recycling-related laws enacted in China, India, and Australia and those expected to be enacted in the future by governments in Asia, Central and South America, and other regions 9
Results of FY2012 In FY2012, in Japan and abroad, Toshiba Group collected about 112,000 tons of end-of-life products, of which it recycled about 90,700 tons. The amount of 4 types of home appliances collected has decreased in Japan, since collection of CRT-based TVs after the shift to digital terrestrial TV broadcasting is almost completed. However, collection in other countries including Europe and America is maintain at a certain amount. <Volume of end-of-life products recycled (global)> (1000t) 200 180 283% 300% 260% 160 250% 217% 140 129.7 2.3 119.3 198% 5 3.5 200% 120 99.4 12 5 2.2 10 10 90.7 100 4 17 11 2.9 150% 8 9 18 5 80 100% 10 16 24 12 60 21 100% 0 45.8 20 18 40 4 6 10 59 21 50% 7 50 20 40 12 22 0 7 0% 2001 2009 2010 2011 2012 PCs Medical equipment Air conditioners Commercial equipment Air conditioners Refrigerators TVs Expansion rate of the recycled amount 10
Breakdown of the volume of end-of-life products recycled (FY2012) Looking at the volume of end-of-life products recycled by region, in Japan 80% of the total volume is recycled, with four types of home appliances accounting for the bulk of this. Major items collected and recycled in Europe, which has the next highest recycling ratio after Japan, include TV sets, PCs, multifunctional peripherals (MFPs), and medical equipment. In the U.S., major items include TV sets and PCs. Maintaining the volume of end-of-life products collected in China and other Asian countries as well as preparing to respond to recycling-related laws that are expected to be enacted in other areas are issues to be addressed in the future. 11.9% Japan America 8.3% 0.11% 90,700 tons Europe Asia/Oceania 79.7% <Volume of end-of-life products recycled by region> 11
Volume of end-of-life products recycled by region (FY2012) Europe : 10,800 tons In accordance with the WEEE *1 Directive, Toshiba Group is collecting and recycling end-of-life products throughout Europe. Japan : 72,200 tons In addition to the four types of home appliances and PCs, business equipment is also collected and recycled. 10,800 tons 72,200 tons Asia and Oceania : 100 tons Toshiba Group is expanding its PC recycling program globally. In countries in Asia and Oceania, the Group has voluntarily implemented a PC recycling program. Americas : 7,500 tons Toshiba Group is collecting and recycling end-of-life products such as TV sets and PCs through MRM *2, a recycler. 7,500 tons 100 tons *1)The WEEE Directive is a directive of the European Union concerning waste electrical and electronic equipment. *2) Electronic Manufacturers Recycling Management Company, LLC (MRM) is a recycling management firm established jointly with Panasonic Corp. and Sharp Corp. in September 2007. 12
Legislation situation of WEEE in Asia and Australia Local situation:legislation of e-waste now progressing in Malaysia, Vietnam, Thailand, Singapore etc. Toshiba s action:formulating optimized take-back/recycling scheme which will not be a disadvantage to Toshiba, but will contribute to its business. <India>In effect: May 1 st, 2012 <WEEE/RoHS Directive> *Products:4 home appliance, PC, MFP, etc. *WEEE:May, 2012 *RoHS:May, 2014 <Australia>In effect: July 1 st, 2012 Stewardship scheme of waste equipments (TV, PC) issued (Nov., 2011) *Handled mainly by (TAP) *Toshiba participates in ANZRP (*) take-back scheme <e-waste legislation situation in Asia and Oceania> India Australia Thailand Malaysia Singapore Taiwan Hong Kong Philippines Vietnam Indonesia <Thailand> Legislation now being discussed *2012~16:Start of phase 2 of WEEE strategic framework, legislature draft likely to be published in the end of 2013 <Vietnam>Legislation now being discussed <WEEE draft announced> (Most recent draft:nov., 2011) *Products:4 home appliances PC, MFP, DVD, batteries, fluorescents, etc. *Serially issued according to each category from 2014 to 2018 <Malaysia>Legislation now being discussed <End of JICA take-back verification PJ> *Product:4 home appliances, PC *Discussing second verification experiment (phase 2) which will be expanded to 5 states within the country *Legislation likely to be after 2014 <Singapore> Legislation now being discussed <Draft for ICT equipment recycling > *Target products : PCs, displays, printers, mobile-phones, accessories, etc. *Legislation likely to be after 2014 (*)ANZRP:Australia and New Zealand Recycling Platform Ltd. <Indonesia> Details still unknown <Superior law already in effect>oct., 2012 *Details of WEEE still unknown *Suggestion to manufactures before legislation Commencement of voluntary recycling program, consumer enlightenment 13
Response to Ewaste Regulation In Asian region, movement of regulations related to e-waste is gaining momentum Appropriate response to the regulations including e-waste is essential in order to conduct business in Asia. Toshiba Group will promote lobbying activities in the region and establish an appropriate scheme for collection and recycle of e-waste, so that our business will have a benefit from the system. 14
Outline Section 2 Experience in Toshiba s ewaste implementation in Malaysia Overview of Toshiba voluntary e-waste takeback scheme What we have achieved so far? Learning Process : Issues and challenges ( Technical and behavioural mindset ) 15
Toshiba Voluntary e-waste Takeback Scheme in partnership with Shan Poornam Metals Sdn Bhd and supported by Department of Environment Malaysia For more information on Toshiba Takeback program 1)For Refrigerator, TVs and Washing Machines : www.toshiba.com.my 2)Notebook : http://www.teledynamics.com.my/about-us/go-greenprogram/introduction 2013 Toshiba Asia Pacific Pte Ltd
Reasons for Launching the Takeback Program There are 4 main reasons for us to launch Toshiba Voluntary e-waste Takeback program in Malaysia : 1) As part of our product stewardship to provide a safe and affordable recycling of e-waste for our stakeholders. 2) To support Malaysia s government initiative to properly collect household e-waste and to treat properly in a safe and environment friendly manner. 3) To promote resource recovery. 4) To put into practice the lesson learnt from Toshiba Malaysia e-waste project based on JICA model 17
Simple Toshiba Notebook Takeback Program Implementation in Malaysia Equipment EOL collection Equipment EOL Recycling 2013 TAPL 18
Concept of Toshiba e-waste Scheme Project framework: Title : project for model devpt for ewaste collection, separation of transportation from household for recycling Schedule : Project duration is from Aug 2013 until July 2014. Product Scope : ICT products and HA products Concept of pilot project shift from Conventional route to full recovery facilities project route via Toshiba s collections points Preparations: Training, Promotion, Voucher scheme, reverse logistics, collaboration with DOE Households/ Business Conventional recycler unreliable handling not monitored Toshiba s collection points Scrap dealer unsure ewasteflow not monitored Full recovery facilities reliable e-wasteflow monitored 19
Product and Financial Flow for Toshiba voluntary e-waste Takeback Model for WM, Refrigerator, TV and notebook $$$ $$$ $ $$$ Toshiba service center Other IPRs Ewaste collection by Gov run Municipal town council to government waste collectors 20
Toshiba e-waste Takeback Participating Outlets Penang Perak Collection points located in 5 states of Malaysia : 1.Notebook Total 14 Toshiba shops 7 service centers 2. HA 12 Toshiba HA service centers Selangor Malacca Johore 21
Malaysia DOE Website 22
AIDS PROVIDED TO OUR RESELLERS/SERVICE CENTERS Free small LCD TV, posters as an awareness campaign tools to participating dealers. Get our partners to explain the projects that we are promoting. Explain to our salespersons to help convince our dealers on the benefit of participating in the program 23
24
Toshiba e-waste Takeback Price Exchange for Voucher at Toshiba Retailer Item Price ( RM) TV ( Brown Tube Type) complete set 0 TV ( Flat Type) complete set 0 Refrigerator ( complete set ) 0 Washing Machine ( complete set ) 0 Personal Computer ( notebook ) 10 Personal computer ( notebook without HDD) 7 Tablet 5 Projector 5 Portable hdd 3 2013 TAPL 25
26
Current Issuance of Voucher Procedure End Users Carry-in unwanted IT items for e-waste recycling/ free collection of old appliances upon delivery of purchase of new home appliances only ( Other brands are accepted ) Receive the Voucher ( only for notebook walk in customer ) Toshiba Resellers / Service Centre Check the recycling item, record it and keep it for the next e- waste collection Issue Voucher with Date, Company Stamp and Authorized Signature. Voucher value according to the recycling price list Call and make appointment with the Recycling Vendor for collection of e-waste Recycling Vendor / Reseller / Service Centre For notebook, TV, Refrigerator and Washing Machine, Dealers will claim the voucher from recycling vendor. The voucher for TV refrigerator and washing machine to be used to compensate the dealer. Upon the appointment date, visit Reseller shop for collection Receive payment $$ from Recycling Vendor Make payment to Reseller base on the recycling price list Use the Voucher for the next purchase from the issuing reseller shop ( Note: Voucher is only redeemable for Toshiba products only Accept Voucher from End User from the final purchase price Proceed for recycling and give Toshiba monthly report, settlement & destruction notice. 27
Pictorial Process Flow 28
Pictorial Process Flow 29
Pictorial Process Flow 30
E-Waste Voucher Terms & Conditions The following terms & conditions apply: Only valid with a purchase at the issuing reseller shop. Only valid if voucher have the reseller company stamp and an authorized signature. Only valid for 6 months from the date of issue. 31
Pictorial Process Flow 32
Pictorial Process Flow 33
Pictorial Process Flow 34
What we have achieved so far? Project has achieved substantial successes for i.e. in laying the framework for takeback system. Received very good support from our own service and support centre. Rooms for improvement for internal communication with the sales people and dealers 35
LEARNING PROCESS : ISSUES AND CHALLENGES 36
Technical Challenges. Publicity Lacking of publicity to inform the community of the existent of such takeback program (currently main publicity is on the websties). Most of the consumer do not seem to be aware of what will happen to the e-waste that they disposed. They are also not aware of the type of licensed recyclers in the market. To them it does not make any difference as long as they do not have to pay and better still can get some money out of it In the remote area it is more economical to dump it rather than pay for the e-waste collection 37
Technical Challenges. Barriers posed by reverse logistics Cost is high. Reverse logistics is more difficult than forward logistics ( constitutes about 3% to 4% of logistics cost) Lack resources -Resellers are not really ready to commit themselves towards investing and allocating extra resources for reverse logistics adoption unless there is a legislation requirement Lack of support from management 38
Behavioural Challenges 1. Mindset of Consumers It is still at the infancy stage for many local consumers to fully aware of the important of e-waste recycling and hazardous materials substances contained in the ewaste Consumers prefer to sell the e-waste to other scrap collectors which offer higher buying price than to pass the e-waste to Toshiba for proper recycling. 39
Behavioural Challenges ( Cont d) 2. Mindset of Resellers It is a constant challenge for resellers to dedicate space and some resources to promote the recycling program. Resellers are not actively displaying recycling messages and not pro-active in educating their customers on the takeback program. Resellers are tempted to cannibalize certain useful parts from the e-waste for some profit than to hand the e-waste over to Toshiba appointed recycler. Hence, this impacts the value of ewaste 40
Behavioural Challenges ( Cont d) 3.Mindset of resellers ( Cont d) Resellers are more interested in generating sales rather than their social responsibility. Resellers are also not aware of the requirement of the e-waste management and their responsibility..resellers are having space management issues especially in big towns if they were to collect the wastes and temporarily store them 41
Behavioural Challenges ( Cont d) 4. Mindset of Sales Person Lack the awareness of the e-waste management and its impact on the environment. Have to focus more on the increasing sales target. Avoid anything that could jeopardize the dealers. Rapid turnover of sales person and to keep up training the new staff There is almost zero pressure from competitors to use the program as a good marketing tools. In other words, the program do not have the perceived value to the dealers. 42
Section 3: Next Steps What can we do? Who can give us the support? What the government should do to help? 43
What We are doing NOW? We revised the price structure of the voucher for bulky items. We offer FOC collection only and removed voucher incentives for customers when they return refrigerators and washing machines. We pass this voucher for refrigerator/wm to the dealers to compensate the dealers for the reverse logistics.. We send them personal appeal letter to create the much needed awareness We will be creating a leaflet to explain to consumers on the e-waste management requirement and its implication to their futures. Providing the FAQ to the dealers and consumers 44
Moving Forward Re-training the participating outlets Toshiba together with Shan Poornam (SPM) are to conduct periodic training to the participating outlets to refresh their knowledge and to remind them on the takeback program. Regular process feedback and review Gathering feedback from the market and resellers to understand the market situation. Conduct regular meetings with the stakeholders to review and improve the process. Review and renewal of the takeback program contract with SPM on a half-yearly interval. 45
Moving Forward Continue to participate in DOE and Industry recycling meetings Toshiba will continue to participate in DOE meetings to keep abreast with new government guidelines and to feedback the industry concerns. Toshiba will participate in DOE recycling events or activities to promote awareness Toshiba will participate in the industry consultation meetings related to e-waste recycling. 46
Getting Crucial Supports from our dealers and industries The dealers need to look into the issue beyond the monetary incentives alone. The industries need to look into the issue collectively. Our staff need to totally understand the issue in a comprehensive manner. 47
What we need from Government? Creates more public awareness the effect of mismanagement of e-waste products and impacts on the environment. Step up the enforcement of the e-waste regulations by limiting or eliminating the unlicensed e-waste collector. Educating ICT and HA industries on their share in controlling and minimizing the effect of e-waste on environment. 48
Summary. The volunatry scheme is working to change people s behaviour It is said easier than done but there is no silver bullet to tackle this ewaste, There is no turning back for Toshiba. Top management is convinced and committed heavy involvement across all the ranks It may take a few years journey, repeat the PDCA cycle and more people in the frontline need to be involved and especially our dealers. 49