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How End-of-Life IT Management Can Protect Data and Help Lower our Carbon Footprint DCM 5.5 Operations with Justin Tinkle, Director Of Sustainability, DMD Systems Recovery Topics to be Covered: 1. Embodied Energy 2. Social and Environmental Responsibility 3. Data Security 4. Legislation and Certifications 5. Choosing an ITAD Provider What is End-of-Life-IT Management? IT Asset Disposal (ITAD) Computer Refurbishment Electronic Asset Disposal (EAD) Systems Recovery Reverse Logistics Disposition Services Electronics Takeback Technology Decommissioning E-waste Recycling Equipment Demanufacturing The level of responsibility an organization is willing to accept for the disposal of their electronic assets. Some IT Devices that Require End-of-Life Management Servers Computers Storage Devices Monitors Networking Devices Circuit Boards Cables Responsible End-of-Life Management Practices Formulate policies, practices, and strategic decision making that effectively mitigate the negative social and environmental externalities of electronics disposal. Did you know…. 82.3% (2.59 out of 3.19 million tons) of e-waste generated in 2009 went into landfills and incinerators, and 17.7% was exported. (EPA) The average cost of non-malicious data breaches: $470,000. However, the most serious consequences reported are lost reputation and brand value/image. (“The Post Breach Boom”, Ponemon Institute, 2013) Guiyu, China (the unofficial E-waste capital of Asia): • Has the highest levels of cancer causing dioxins in the world • 7 out of 10 kids have too much lead in their blood • Pregnancies are 6 times more likely to end in miscarriage • Rivers are so contaminated that drinking water must be trucked in (60 Minutes: The Electric Wasteland) E-waste is the fastest growing component of municipal waste, we throw out about 130 computers everyday in the US alone. (60 Minutes: The Electronic Wasteland) Manufacturing the average desktop computer and 17inch CRT monitor uses: • 530 Ibs. fossil fuels • 50 Ibs. Chemicals • 3,330 Ibs. water. (Eric Williams Ph.D, ASU Global Institute of Sustainability) Section 1: Embodied Energy Embodied Energy— All of the energy that goes into the production process, cumulatively from raw material to marketable product. Average product fossil fuel to product weight ratio: 2:1 Due to embodied energy in semiconductors and more increasingly, nanomaterials, modern computers are even more energy intensive to produce. Computer fossil fuel to product weight ratio: 12:1 What other components of a computer have high embodied energy proportions? Microprocessors CPUs GPUs Nanomaterials Electronic Grade Silicon Effective air processors Air circulation systems Microchips … Embodied Energy in a Microchip 2-gram microchip in 2002… The RAM in a typical personal computer today contains 18-36 2-gram microchips. The energy used to produce typical laptop RAM is enough energy to power a 30-watt laptop nonstop for 500 to 1,000 days. Needs 1.6 kg fuel for every 2 gram of microchip, or 800 kg fuel to produce 1 kg of microchips (800:1 ratio) “The embodied energy of the memory chip alone already exceeds the energy consumption of a laptop during its life expectancy of 3 years.” (Kris De Decker, 2009) Why Recycling is Not Enough Server life expectancy is 3-5 years, depending on how demanding their applications are. Overall energy use: 83% production, 17% operation. The best way to lower the ecological footprint of any electronic device is to extend its usable lifespan. The Electronics Environmental Benefits Calculator (EEBC) Estimates environmental benefits of greening the purchase, use and disposal of electronics. Specifies environmental attributes (e.g., the elimination of toxic chemicals, the use of recycled materials, power consumption). Specifies product management activity (e.g., power management, equipment reuse and recycling). Translates attributes and activities into environmental benefits. Case Study Life-Extending Options Redeployment Lease Return Management Systems Imaging Selling to Employees Warranty look-up and Provisioning Software Harvesting Donating Useable Equipment Trade-In-Management Sustainability Reporting How can your company lower their carbon footprint, prepare for the possibility of a carbon tax, and enhance their reputation as an environmental leader? End-of-Life IT management Carbon offset credits Section 2: Social and Environmental Responsibility Economics of Social Injustice within E-cycling Trade “Recycling in the developing world at a net profit versus recycling in the U.S. at a net cost creates a market dynamic for exporting electronics to the developing world.” (Professor Eric D. Williams, ASU) Developing World Lower labor costs Higher demand for reused products and parts Less stringent environmental protections Guiyu, China ©2008 Basel Action Network (BAN) Learn more about the e-waste ‘industry’ in Guiyu: 60 Minutes: The Electronic Wasteland Accra, Ghana Learn more about e-waste in Ghana: E-Wasteland, a documentary by David Fedele Negative Social Impacts—Social Injustice 1. Outcome of weak ITAD management caused by the exportation of equipment to developing countries and the effects of unregulated recycling. 2. Outcome of rapid obsolescence of working devices due to new and improved products on the market. Reproduction Illness Chemicals cause higher rates of miscarriages, birth abnormalities, endocrine (hormone) disruption, and more. Workers and residents constantly breath in cancerous and respiratory disrupting pollutants. Sustenance Levels of toxins accumulate as they move up the food chain (ex: water < plankton << fish <<< humans). Pictures: ©2006-8 Basel Action Network (BAN) Negative Environmental Impacts— Jeopardizing Resiliency of Natural Systems 1. Outcome of weak ITAD management caused by pollutants from electronic components infiltrating soil, air, and water. 2. Outcome of rapid obsolescence of working devices due to new and improved products on the market. Water Leeching of chemicals such as lead, mercury, cadmium, hexavalent chromium, brominated flame retardants… Air Burning equipment emits pollutants such as dioxins and furans; two of the most toxic chemicals known. Soil Plants absorb chemicals via air, water, and soil, building up levels of toxins that are absorbed into the food chain. Section 3: Data Security Data Security 1. If breached, could mean the loss of financial and/or strategic company information. 2. In 2010, improper disposal was behind 10% of all data breaches. In 2009, 40% of hard drives sold on E-Bay contained sensitive personal and/or business data. (Kessler International) Source: KPMG International October 2010 Hard Drives: to Sanitize or Destroy? Remarketing IT assets can offset the cost of disposition, but can also jeopardize data security if not managed properly. Costs for data breaches can amount to thousands or even millions of dollars, depending on fines, bad PR, and sensitivity of the data breached. How can you maximize investment recovery for your retired IT assets without compromising security? Physical Destruction… Destruction decreases residual value; remarketing value is higher when systems are intact. IT assets can lose about 20-30% of their remarketing value when hard drives are removed. Destruction is only necessary when the equipment being retired has no resale value. Data Sanitization is an Authorized Alternative Every major American and European standards organization, including the National Institute of Standards and Technology, acknowledges that a single-pass overwrite is suitable for data destruction. (NIST 800-88)* *Data sanitization procedures must comply with all industry standards Data Security Compliance Certified data destruction vendors conform to certification standards from: Payment Card Industry (PCI) National Association for Information Destruction (NAID) They are also compliant with regulations from a number of other data sanitization-standards-organizations, such as: Department of Defense (DoD) Fair and Accurate Credit Transactions Act (FACTA) Fair Credit Reporting Act (FCRA) Gramm-Leach-Bailey Act (GLBA) Health Insurance Portability and Accountability Act (HIPAA) Health Information Technology for Economic and Clinical Health Act (HITECH) National Institute of Technology (NIST) Sarbanes-Oxley Act Some Common Data Security Guidelines From the Organization for Economic Co-operation and Development (OECD) Guidelines for the Security of Information Systems Accountability - The responsibilities and accountability of owners, providers and users of information systems and other parties...should be explicit. Awareness - Owners, providers, users and other parties should readily be able, consistent with maintaining security, to gain appropriate knowledge of and be informed about the existence and general extent of measures...for the security of information systems. Proportionality - Security levels, costs, measures, practices and procedures should be appropriate and proportionate to the value of and degree of reliance on the information systems and to the severity, probability and extent of potential harm.... Integration - Measures, practices and procedures for the security of information systems should be coordinated and integrated with each other and other measures, practices and procedures of the organization so as to create a coherent system of security. Reassessment - The security of information systems should be reassessed periodically, as information systems and the requirements for their security vary over time. Section 4: Legislation and Certifications Federal Legislation— Responsible Electronics Recycling Act Originally introduced and repealed in 2011, and set to be reintroduced this year. If passed, will prohibit electronic exports to non OECD/EU Countries. Will require EPA to develop procedures for identifying materials that pose a threat to human health and/or the environment. State Legislation Without appropriate legislation or enforcement in place, it is up to individual recyclers to provide an environmentally responsible choice for recycling. Responsible Recycling Certifiers—R2 Established as a collaboration between EPA, state governments, OEMs, NGOs, refurbishers, and recyclers. R2 Certifies that vendors follow strict guidelines in over 50 operational and environmental areas. These are categorized into 4 groups: 1. 2. 3. 4. Data Security Environmental practices Proper E-waste Disposal Remarketing and Reuse Vendors are audited annually to verify they are adhering to guidelines. Responsible Recycling Certifiers—E-Stewards Developed by the Basel Action Network (BAN) with input from experts in the recycling and asset recovery industries, environmentalists, health and safety professionals, and the certification and accreditation industries. Uses ISO 14001 as a framework Exportation of hazardous e-waste from developed to developing countries is not permitted. Safe on-site handling of hazardous e-waste and other problematic components and materials, such as no shredding of mercury. Full accountability for the entire downstream recycling chain of toxic materials to final disposition. Number of Certified Facilities As of March 31, 2013 357 USA, Costa Rica, United Kingdom, Germany, India, Malaysia, Singapore, China, New Zealand, and Australia 134 USA and United Kingdom Section 5: Proficient ITAD Providers Proficient ITAD Vendors Proficient vendors maintain: Compliance with relevant legislation Critical knowledge of remarketing value of assets Detailed Records, including a data security repository Regular audits to ensure devices are 100% free of data Best Practices of an End-of-Life Vendor 1.0 Policy Formal, written policy Certified in environmental and data destruction processes Consistent implementation enterprise-wide 2.0 Organization Centralized program control Senior management oversight & accountability Designated individuals with formal roles & responsibilities 3.0 Internal processes & controls Certified technologies for data destruction Separation of duties 4.0 External processes & controls Certified vendors Certified technologies for data destruction Secure chain of custody for media in transit Environmental recycling with zero landfill policy Liability indemnification 5.0 Documentation Online inventory and reporting Serialized reporting Certificate of destruction Sustainability Reporting 6.0 Program management Incident management procedures in place Periodic vendor review and program audit Resale, redeployment, charitable donation, employee purchase options available. Thank You! Justin Tinkle Director of Sustainability DMD Systems Recovery, Inc. [email protected] (602) 307-0180