Sustainability for High Tech Manufacturing
Technology hardware production is fundamentally a resource-intensive industry, and in recent years many manufacturers of computers, phones, network servers, and infrastructure have become increasingly focused on environmental sustainability. Leading firms are adopting cleaner manufacturing practices, are transparent in their environmental reporting and metrics tracking, and are working to build sustainability into their employee cultures. Moreover, many firms have improved their products’ energy efficiency and have begun to build product take-back/responsible recycling programs. However, many of these efforts are still in the early phases and have yet to be incorporated into sustainability management programs.
Sustainability Drivers
Customers want technology to enable energy efficiencies, such as reduced travel, and other cost savings. Customers also see high technology solutions, such as automation and smart sensing technologies, as critical ways to analyze and address environmental issues. Digital data capture and processing is widely seen as central to smart grid technology, improved real-time routing, and management of everything from residential irrigation systems to industrial energy use.
As NGO, media, and public awareness of toxic materials in high-tech devices grows, there is mounting pressure on companies to support proactive actions to reduce the environmental impacts of electronics throughout their lifecycle. For example, as part of its “Toxic Tech” campaign, Greenpeace publishes a quarterly guide to green electronics that includes environmental rankings for individual electronics manufacturers. NGOs have also raised concerns about the impacts of sourcing raw materials, such as coltan and gold. Regulatory pressures on high-tech manufacturers are mounting in Europe and the U.S., particularly around the reduction of hazardous substances, including lead and brominated flame retardants. Regulations, such as the EU’s Waste Electrical and Electronic Equipment (WEEE) Directive and an increasing number of U.S. state electronics recycling laws, also demonstrate a growing consensus to address sustainability issues systematically.
Challenges and Opportunities
To meet the future challenges, high-tech manufacturers should ask themselves several important questions:
- How assured are we that the materials we use in our products are safe and sourced responsibly?
- How can we develop and implement take-back and recycling programs that reduce our risks and potentially improve our brand?
- How can we leverage our environmental efforts effectively to create value for our customers and differentiate our products from those of competitors?
Viridis has worked closely with leading high-tech companies to navigate these and other issues.
Case Study
A global corporate leader in high-tech telecommunications design and manufacturing -- that qualified at the outset as a leader in environmental sustainability -- asked Viridis to help measure its environmental performance against that of competitors and sustainability leaders in other industries. This in-depth benchmarking against 24 companies and strategy cross-check was part of the company’s ongoing sustainability and business planning cycle, and also served as a way to identify gaps and opportunities in the strategy. The work surfaced an action agenda that included more complete reporting on energy use and climate change; enhanced focus on e-waste and supply chain management; and, because of a significant differential between actual performance and publicly available information, a plan for stepped-up consumer engagement and environmental communications.