sustainability and environmental management 2013...

© 2013 Toshiba Asia Pacific Pte Ltd

Sustainability and Environmental

Management 2013 :

Household E-Waste Take back Program

Toshiba Asia Pacific Pte Ltd

Environmental Management

Lim Joo Peng

Oct 23, 2013

2

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

3 © 2013 TAPL 28.10.2013 3

•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

E-Waste - A Significant Challenge

4

• Current practice

Waste Scavengers ( source: Thai PCD)

5

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

6

The Scope of the Problem for HA appliances

CFC – 11

• Foam Insulation:

0.45 kgs

CFC – 12

• Refrigerant: 0.23 kgs

Mercury containing

components

• 0.001 kgs

Metal, plastic and glass

Casing/ refrigerator shell

• 72 kgs metal

• 34 kgs plastic

• 5 kgs glass

Used Oil

(May be contaminated)

• 0.2 kgs

PCBs

May be contained in

Capacitor, small quantities

Source: EPA

Ref. Innovation Norway

• Bulky and difficult to recycle

• Hazardous waste

7 © 2013 TAPL

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.

8

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

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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

10

7

4059

50

2212

20

2421

217

16

1718

18

10

9

1011

12

8

1210

10

4

5

5

5

64

3.5

0

2.2

2.3

2.9

198%

260%

283%

217%

100%

0

20

40

60

80

100

120

140

160

180

200

2001 2009 2010 2011 2012

(1000t)

0%

50%

100%

150%

200%

250%

300%

PCs

Medical equipmentAir conditioners

Commercial equipmentAir conditioners

RefrigeratorsTVs

Expansion rate of the recycled amount

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)>

45.8

129.7 119.3

90.7 99.4

∬

11

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.

0.11%8.3%

79.7%

11.9%

Japan Europe

America Asia/Oceania

90,700

tons

<Volume of end-of-life products recycled by region>

12

Volume of end-of-life products recycled by region (FY2012) ●Japan : 72,200 tons ●Europe : 10,800 tons

●Americas : 7,500 tons

●Asia and Oceania : 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.

Toshiba Group is collecting and recycling end-of-life products such as TV sets and PCs through MRM*2, a recycler.

Toshiba Group is expanding its PC

recycling program globally. In countries in

Asia and Oceania, the Group has

voluntarily implemented a PC recycling

program.

In accordance with the WEEE*1 Directive, Toshiba Group is collecting and recycling end-of-life products throughout Europe.

In addition to the four types of home appliances and PCs, business equipment is also collected and recycled.

72,200

tons

7,500

tons

10,800

tons

100

tons

13

Indonesia

Thailand Vietnam

India

Australia

Singapore

Philippines

Hong

Kong

Taiwan

Malaysia

＜e-Waste legislation situation in Asia and Oceania＞

＜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

＜WEEE/RoHS Directive＞

*Products：4 home appliance,

PC, MFP, etc.

*WEEE：May, 2012

*RoHS：May, 2014

Stewardship scheme of waste

equipments (TV, PC) issued (Nov., 2011)

*Handled mainly by （TAP）

*Toshiba participates in ANZRP(*)

take-back scheme

＜India＞In effect: May 1st, 2012

＜Australia＞In effect: July 1st, 2012

*2012～16：Start of phase 2 of WEEE strategic

framework, legislature draft likely to be

published in the end of 2013

＜Thailand＞ Legislation now being discussed

＜Malaysia＞Legislation now being discussed

＜Vietnam＞Legislation now being discussed

＜Superior law already in effect＞Oct., 2012

*Details of WEEE still unknown

*Suggestion to manufactures before legislation

⇒Commencement of voluntary recycling

program, consumer enlightenment

＜Indonesia＞ Details still unknown

（＊）ANZRP:Australia and New Zealand Recycling Platform Ltd.

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.

＜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

＜Draft for ICT equipment recycling >

*Target products : PCs, displays, printers,

mobile-phones, accessories, etc.

*Legislation likely to be after 2014

＜Singapore＞ Legislation now being discussed

14

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.

15

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 )

© 2013 Toshiba Asia Pacific Pte Ltd

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-green-

program/introduction

http://www.toshiba.com.my/

http://www.teledynamics.com.my/about-us/go-green-program/introduction







17

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

Reasons for Launching the Takeback Program

18 © 2013 TAPL

Simple Toshiba Notebook Takeback Program Implementation in Malaysia

Equipment EOL collection Equipment EOL Recycling

19

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

Scrap dealer – unsure

ewasteflow not

monitored

Toshiba’s

collection points

Full recovery facilities –

reliable e-wasteflow

monitored

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Product and Financial Flow for Toshiba voluntary e-Waste

Takeback Model for WM, Refrigerator, TV and notebook

$$$ $$$$

$$$

Toshiba

service center

Ewaste collection by Gov run Municipal town council to

government waste collectors

Other IPRs

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Toshiba e-Waste Takeback Participating Outlets

Collection points

located in 5 states

of Malaysia :

1.Notebook

•Total 14 Toshiba

shops

•7 service centers

2. HA

• 12 Toshiba HA

service centers

Penang

Perak

Selangor

Malacca

Johore

22

Malaysia DOE Website

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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

25 © 2013 TAPL

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

27

Current Issuance of Voucher Procedure

End Users Toshiba Resellers / Service

Centre Recycling Vendor / Reseller /

Service Centre

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 )

Check the recycling item, record

it and keep it for the next e-

waste collection

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

Receive the Voucher

( only for notebook walk in customer

)

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

Upon the appointment date, visit

Reseller shop for collection

Receive payment $$ from

Recycling Vendor

Accept Voucher from End User

from the final purchase price

Proceed for recycling and give

Toshiba monthly report ,

settlement & destruction notice.

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.

28

Pictorial Process Flow

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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.

E-Waste Voucher Terms & Conditions

32


33


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35

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

36

LEARNING PROCESS :

ISSUES AND CHALLENGES

37

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

38

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

39

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.

40

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

41


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

42


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.

43

Section 3: Next Steps

• What can we do?

• Who can give us the support?

• What the government should do to

help?

44

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

45

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.

46

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.

47

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.

48

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.

49

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.

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