Transcript EnvironDesign9 - Stanford Graduate School of Business

Competitive
Solutions for
Product End-ofLife
Steve Rockhold
Worldwide Program Manager - Product
Recycling
Hewlett-Packard
Company
© 2005 Hewlett-Packard Development
Company, L.P.
The information contained herein is subject to change without notice
HP today
$25B imaging and
printing franchise
$15B IT
infrastructure
business,
encompassing
servers, storage &
software
$24B access
devices business
$14B services
business;
consulting, support
& outsourcing
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Competitive Solutions for Product End-of-Life
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Why environmental issues matter at HP
•
HP’s commitment to corporate
environmental responsibility started with
Dave Packard and Bill Hewlett in1930’s
•
Now its a competitive requirement in a
global market
•
Complex environmental standards and
government regulations exist worldwide
•
Environmental concerns of organized
interests (NGO’s) demand change
•
It’s the right thing to do!
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The basics
•
Reduce
− HP products are getting lighter,
smaller and use less energy
•
Reuse
− Leasing, trade-in, and donation
programs all extend product life
•
Recycle
− Convenient, inexpensive, and
responsible recycling feeds
new product streams with
reclaimed material
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HP’s sustainability commitment
Reducing impact throughout the product life cycle
•
Design for Environment
− Use appropriate materials,
minimize parts, enable recycling
•
Product
Lifecycle
Manufacturing
− Establish sustainable supply chain
management
•
Use
− Minimize waste (failures, reprints)
and improve resource efficiency
•
End-of-Life Management
− Provide convenient return and
recycling, recover material
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HP Planet Partners
Return and recycling program
− Available in more than 40 countries
− In 2005:
• collected ~2.5 million hardware products for reuse
• recycled more than 140 million pounds
• surpassed 750 million pounds recycled since 1987
− Goal:
• 1 billion pounds recycled by 2007
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Easy to return and recycle
•
Simple return and recycling of any
piece of computer hardware from
any manufacturer for nominal
handling fees
•
Free and convenient print cartridge
return and recycling
− Postage-paid labels and envelopes in
HP LaserJet cartridges and select HP
inkjet cartridge boxes
− Information and postage paid materials
available at www.hp.com/recycle
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State of the art recycling facilities
•
Planet Partners recycling
facilities turn hardware and
print cartridges into raw
materials for new products
− Automotive parts, clothes hangers,
fence posts, microchip processing
trays, serving trays, shoe soles and
spools
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From 2005 HP Global Citizenship Report
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Take back and recycling process steps
•
Collection of used product
•
Transport & consolidation
•
Disassembly & removal of hazardous materials
•
Separation & aggregation of valuable materials
•
Material reduction (shredding)
•
Final treatment and/or disposal of materials
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Reverse supply chain challenges
• Movement of “e-waste” between regions is restricted
• Material value must offset transportation costs
• Products returned in US & EU are produced in Asia
• Uniform recycling standards must be enforced globally
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Environmental dilemma: computer
monitors
Cathode Ray Tube processing options
•
Glass-to-glass recycling into new CRTs
− Best for environment (minimizes energy
waste)
− Monitors are largely collected in US & EU
− No CRT manufacturing remains in US or EU
− Restricted movement of CRT glass severely
limits use of this alternative
•
Smelt back into lead and glass
− Wastes energy consumed to join lead &
glass
− Glass acts as flux for smelter
− Lower cost substitute (sand) drive up costs
− Some lead is lost in the recovery process
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Legislative challenges
•
Protecting HP’s customers’ interest (tax avoidance)
•
Maintaining control over materials, fee payments & costs
•
Containing the proliferation of local operational
requirements (state, province, country)
•
Ensuring a level competitive playing field
− Determination of share for financial responsibility
•
Minimizing non-value added reporting requirements
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HP Solutions: Consumer channel
programs
•
Free HP recycling offered at 850 US stores
− collected 10.5 million pounds in 7 weeks
•
Pre-paid HP recycling (purchase box)
•
Coupons for HP product discounts given to
those returning products
− year-over-year store sales increased substantially
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One day’s collection in a single store
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HP solutions: European Recycling Platform
•
Founded in 2004 by:
http://www.erp-recycling.org
•
Guiding principle:
− Competition between take back
systems will ensure lowest cost
and highest quality
•
Structure:
− Pan-European
− Outsourced operations to multiple
“general contractors”
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Austria 1
ERP results: driving costs down
Monopolies
0.50 €
0.40 €
0.30 €
0.20 €
HP avg. cost per kg sold
Norway (0,462)
Belgium (0,45)
Austria 2
Switzerland (0,351)
Sweden (0,313)
Netherlands (0,299)
ERP Austria
Austria 3
0,16
0,16
0,14
0.10 €
0,11
June July Aug Sept Oct Nov Dec Jan
* based on HP’s current product mix (30% display-products 70% products > 50 cm)
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Quote slide
“…many assume, wrongly, that a
company exists simply to make
money…the real reason HP exists is
to make a contribution."
David Packard
Cofounder of Hewlett-Packard
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Thank you
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