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CleanMed Conference April 14, 2004 Anne Peters Gracestone, Inc. Greening Electronics Purchasing Decisions: End-of-Life and New Equipment
CleanMed ConferenceApril 14, 2004
Anne PetersGracestone, Inc.
Greening Electronics Purchasing Decisions:
End-of-Life and New Equipment
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 $1M/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.
• The light bulb as the IT managers “got it”.
• Den Purchasing is ‘green’
Lesson Learned:
You need a champion,
an insider, and a
compelling motivator
for the organization.
Lesson Learned:
You need a champion,
an insider, and a
compelling motivator
for the organization.
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– Label websites– EPA EPP, DfE
Lesson Learned:
Nice collective
learning curve; use
the web & call too.
Lesson Learned:
Nice collective
learning curve; use
the web & call too.
Process with Purchasing & DoIT• Determine IT & org. needs, preferences:
– security & data destruction– end-of-life markets (prison, overseas)– contractual req’ts– re-use criteria (addressed in ordinance)– EMS compliance & internal green goals– life cycle cost of FPD vs. CRT– lease vs. purchase– WSCA-NASPO considerations– disaster recovery needs– labeling
Lesson Learned:
Ask for separate
meetings on this.Lesson Learned:
Ask for separate
meetings on this.
Lessons Learned:
Interdepartmental
cooperation.
Procurement & IT
wants to learn. Teach
them.
Lessons Learned:
Interdepartmental
cooperation.
Procurement & IT
wants to learn. Teach
them.
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.
– End-of-life management requirements.
– Packaging and shipping.
– Worker health and safety.
– Purchase vs. lease.
Lesson Learned:
An OEM Rohrschach
test.
If everyone asks,
OEMs must respond.
Lesson Learned:
An OEM Rohrschach
test.
If everyone asks,
OEMs must respond.
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
• 3rd-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• Assure worker safety• No bad overseas markets Lesson Learned:
Ask for more than
you think you’ll get. Lesson Learned:
Ask for more than
you think you’ll get.
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.
VendorEnviro.Resp.
1
Energy
1
3rd
PartyLabel
2
Take-back
4
Prod &pkg
features2
Total10
Dell 1 1 2 2.5 2 8.5
Gateway 0 .5 0 1 1 2.5
HP 1 .5 2 3 2 8.5
IBM 1 1 2 3 2 9
4/03 Lesson Learned:
Price wins in the end. Lesson Learned:
Price wins in the end.
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.• Didn’t end up in final contract
language.• City can bring its e-scrap. Lesson Learned:
Keep pressure on OEMs
to do right th
ing in
communities th
ey serve. Lesson Learned:
Keep pressure on OEMs
to do right th
ing in
communities th
ey serve.
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
Product Price w/ End-of-Life Costs 50Product Evaluation 10
Corporate Quals & References 10Environmental Concerns 10
Product Line Lifecycle 10Continuity of Components 10
TOTAL 100
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
Anne PetersGracestone, Inc.
303.494.4934 voice
303.494.4880 fax
For more information:
Why are scrap electronics a problem in CO?
