Environmental Sustainability and Innovation

in the Consumer Electronics Industry

Environmental Sustainability
and Innovation in the
Consumer Electronics Industry

TABLE OF CONTENTS

Letter from the Consumer Electronics Association

Introduction and Methodology

Key Findings

Eco-Design of Products

Energy Efficiency of Products

13

Green Facilities and Manufacturing

16

Clean Delivery

20

Giving Back

26

Looking to the Future

29

About the Authors

32

Letter from the Consumer Electronics Association

We are pleased to present to you the first-

determined as much by our stewardship to

ever consumer electronics (CE) industry

the environment as to our customers,

environmental sustainability report. As the

employees and business partners.

preeminent trade association representing the

consumer electronics industry, the Consumer
Electronics Association (CEA) is benchmarking
our industrys progress toward environmental
sustainability while highlighting our industrys
environmental accomplishments. These
strategies not only benefit our industry and
our customers, but they also contribute to
the health of people and the planet.

We have the highest confidence that the people

who have changed our world with ubiquitous
devices such as mobile phones and computers
as well as technologies such as digital
photography and high-definition television
can have an even greater impact through
innovations in environmental sustainability.
Our progress will include at times small steps
as well as great leaps. This report not only

The CE industry attracts the best and brightest

shows the great progress we have made, but it

mindsvisionaries, who can see the world in

also helps light the way for the future by

30 years as if it were today, and who develop

identifying opportunities for continued

technologies and products to meet the needs

improvement. CEA is committed to leading

of our children and grandchildren. Indeed, our

this effort by providing support to our members

industry is shaping the world and the way we

with environmental initiatives currently

communicate and connect to one another. Our

underway, as well as educating the broader CE

products take cars off the roads and reduce

industry about best practices in sustainability.

emissions from office buildings by enabling

The CE industry has an important role in

telecommuting. And we must do more, for we

environmental sustainability. We look forward

cannot look to the

to the continued

future without

strides by our industry

recognizing a great

to not only provide

ethical responsibility to

great products and

our environment. We

services, but also to

exist not only as part of

protect and preserve

a global economy, but

our environment.

also as part of a global

ecosystem. Our future

Gary Shapiro

Parker E. Brugge

success will be

President and CEO

Consumer Electronics Association

Vice President, Environmental Affairs and Industry Sustainability

Consumer Electronics Association

Introduction and Methodology

The consumer electronics industry is a globe-

This report explores environmental

spanning network of tens of thousands of

sustainability and innovation in five ways:

companies, including companies that make

materials and components, design,
manufacture and distribute products, and
sell them in retail stores and online.
More and more, the environment is taken
into account as companies perform
these activities.

First, we examine how companies have

changed their design process to create
products that are more streamlined, need
less packaging, contain fewer harmful
chemicals, and allow for increased
reusability and recycling.
Second, we look at the way products
contribute to conservation of energy and
electricity.
Third, we study companies internal
processes to uncover best practices in lean
manufacturing and greening of facilities.
Next we focus on clean delivery strategies
those that keep the supply chain efficient,
conserve resources, and encourage

For purposes of this report, CEA defines

environmentally sustainable business as
business that operates in a way that meets the
needs of the present without compromising
the ability of future generations to meet their

minimal waste.
Finally, we highlight companies successful
strategies for giving back to their
communities.

own needs.
The CEAs definition is a variation on the
classic Brundtland Commission definition of
sustainable development: Sustainable
development is development that meets the
needs of the present without compromising

For purposes of this report, CEA defines

environmentally sustainable business
as business that operates in a way that
meets the needs of the present without
compromising the ability of future
generations to meet their own needs.

the ability of future generations to meet

their own needs.
4

To more carefully measure the extent to

They employ about 2 million people

which consumer electronics companies

globally and had combined revenue of

have improved business practices and

around $700 billion in 2007, according to

implemented process changes to become

public financial information.

more sustainable, we examine quantitative

research on companies that make popular
products found in stores, such as cell
phones, computers, televisions and digital
cameras. In examining existing practices, we
noticed immediately that some systems
bring environmental benefit as a natural
component of doing business. In these
instances, no tradeoff exists between profit
and planet, and each day, companies are
discovering more and more ways to align

We looked at these companies use of

electricity, natural gas and water; the waste
they generate and chemicals they use;
greenhouse gas emissions (especially carbon
dioxide); and practices for taking back
products for recycling after consumers have
finished using them. All companies have
programs underway to minimize resource
and chemical usethis is simply good
business, for such practices save money.

these two goals. Next, we

interviewed dozens of
people in the industry
who are working on
their companies
environmental products
and programs to
determine what changes
we have to look forward
to in the future, and what
challenges still exist. We
identified 31 companies
with the largest market
share, representing 16
categories of products; 20 of these
companies track and report their
environmental data. These top 20 companies
make about half of the consumer electronics
units in the global marketplace.
5

From these interviews, we documented

many stories of exemplary practices
occurring right now, as well as technical
and business innovations that could bring
greater benefits in the future. These
industry-wide practices and specific

It is important to note that

environmental and economic
benefits sustain all key industry
stakeholders, including
customers, investors and
business owners.

inspiring cases we gathered form the bulk

of the report.

These exceptional stories are highlighted

Finally, to gain some sense of this huge CE

throughout the report. Our hope is to drive

industrys quantitative environmental

adoption of these practices more widely

impact, we gathered data on companies use

across the industry.

of resources and their recent conservation

It is important to note that environmental

efforts; the results are summarized

and economic benefits sustain all key

throughout the report. To dig deeper, we

industry stakeholders, including

connected directly with the people working

customers, investors and business owners.

toward environmental sustainability among

The CE industry has already begun

major consumer electronics companies

committing significant time and resources

and many others in the industryand

toward environmental leadership.

found some truly exemplary practices.

The results of this study indicate that the

industry likely will invest even
more resources, and it pledges
to redesign products and
components, conduct extensive
due diligence, design efficient
supply chain processes, and
make internal commitments to
fortify green policies.
Maintaining a green attitude to
business will certainly be a
crucial part of the CE industrys
innovative future.

Key Findings
In examining environmental data from 20 of the

Efforts to reduce greenhouse gas

largest consumer electronics companies by

emissions demonstrate the diversity of

market share, we found that most were looking

company behavior as well as the promise

for ways to reduce waste, conserve resources

of emulating the top performers. Looking

and shrink product size. Nonetheless, a diversity

at the emissions of 10 major companies

of results has been achieved, and this study is

that have tracked this data during the past

one of the first to highlight the range of

three years, we found that seven of the 10

behaviors, so that more companies can move

lowered their emissions per million

into the realm of the highest performers.

dollars, and four companies actually

For example, electricity use per one million

revenue dollars decreased by 525% during
the past three to four years among those
companies that achieved reduction, according
to their own reports. The exemplary companies
are using dramatically fewer resources and
are making genuine efforts to close loops
by taking back products and selling their

lowered their absolute greenhouse gas

emissionsmeaning that they emitted
less carbon even while the company grew.
Clearly there is an opportunity for all
companies to learn from the exemplary
players. If several large companies can
achieve reductions, its likely many others
can also.

unusable materials to other companies.

From 2003 to 2007, one company reduced
its electricity use per employee by an
impressive 58% (despite increasing the
number of employees by 60%). Another
decreased its electricity use per million
dollars of revenue by 46% while increasing
revenue by 43%. Two truly exemplary
companies reduced their absolute
electricity use, even while growing their
businesses. Together, they saved 223,000
tons of CO2 from entering the atmosphere.
That is the equivalent of taking 51,000 cars
off the road for a year.
7

 At least half the companies we interviewed

Also included in this report are the results

were diverting 80% or more of their

from a joint survey performed by TFI

unusable materials from landfills and some

Environment and Sims Recycling Solutions

diverted as much as 98%. They found more

of 64 companiesa few large and well-

creative uses such as recycling the

known, and many mid-sized and small

materials or selling them to partners who

playersregarding their recycling, reuse and

used them as feedstock in their own

conservation efforts. The results

businesses. If all 20 of these companies

demonstrate that among this diverse and

sent no more than 2% of their waste to

representative set, there is quite high

landfills, nearly two million tons of material

engagement with environmental practices.

would be beneficially repurposed. And we

For example, 69% of respondents are

estimate that nearly 600 million tons of

already recycling, and 38% are reusing

used electronics products have been

some form of the electronics products they

recycled by these top 20 companies alone.

make or use.

Eco-Design of Products

Eco-Design of Products
Eco-design means starting off right: Creating
products out of environmentally friendly

BRINGING IT ALL TOGETHER

materials, using efficient designs that

Seiko Epson takes into account

the entire life cycle of its printers
and other products while they are still in the design
phase, earning the company 13 eco-design awards in
two years. For instance, it has created its own
database of the environmental impacts of chemicals,
established quantitative metrics of businesses
impact on society, and designed its own labeling
system called EcoLeaf.

require fewer materials, and maximizing

reusability and recyclability.
Some practices in the consumer electronics
industry already bring about the result of
lower environmental impact.Miniaturization
is a clear example: As cell phones,
computers, cameras, and nearly every other
product become smaller and lighter for
easier portability, so too do their
environmental footprints shrink. Smaller

Epson makes its packaging out of trees specifically

grown for that purpose, and plants 20% more trees
than are consumed. Each product comes with a full
Ecology Profile that includes recycling information
about every component. Printer product
components are also 85% recoverable.

products require fewer raw materials to

extract, less energy to transport the raw
materials and fabricate components, smaller
floor space in manufacturing, fewer trucks
and ships for transporting finished products,
often less energy during product use and

reuse, and less to recycle at end of life.

When the products package is designed to
be as small and light as possible, materials
are further reduced and shipping and
shelf-space optimized even more. These
days, even the product manuals are reduced
in size or distributed electronically. All of
these steps save resources (and money) and
result in less carbon emission.
The signature practice in eco-design is
called Design for Environment (DfE). In the
United States, the Environmental Protection
Agency publishes an evolving set of
guidelines that many companies have found
helpful for DfE. Implementation of these
guidelines assures that products use the
minimal amount of the most benign and
10

that companies have strong incentive to

STAYING AHEAD OF THE CURVE

retrieve products when their customers are

The European Unions

Restriction of Hazardous
Substances (RoHS) directive
went into effect in July 2006, limiting the usage
of five classes of materials. Even prior to this
directive, Nokia had decided to voluntarily omit
certain compounds from its products because
their safety to human health and the
environment was in question. Nokias
design-for-environment engineers worked with
the environmental department to remove
about 225 additional substances from the
companys products.

finished with them.

How can consumers choose products with
good eco-design? The Green Electronics
Council (GEC) has created a rating system
called EPEAT (Electronic Product
Environmental Assessment Tool) that
evaluates products on 51 environmental
criteria in eight categories, including
materials use, design for end of life, and
packaging. GEC estimates that 2007
purchases of EPEAT-certified products have

recyclable materials and that they are

reduced the use of primary materials by

constructed to be easy to disassemble, for

75.5 million metric tons (equivalent to the

instance by using simple screws or snap

weight of more than 585 million

fits rather than glue between parts. Most

refrigerators) and reduced the use of toxic

top companies now have explicit DfE

programs, and others include some of
these principles as part of cost reduction
efforts. For example, both Hewlett-Packard
and Philips began incorporating DfE
principles into their product design more
than 15 years ago. Additionally, the CE
industry is minimizing or eliminating the
use of hazardous chemicals or materials
where feasible.
Many companies are creating additional
internal guidelines on the weight, noise,
energy use, and number of recyclable parts
for their products. And more and more

LINKING BACK TO DESIGN

In a brilliant example of the
cycle of value, Lenovo is
driving the use of post-consumer recycled material
in its products. This recycled material is designed
inmeaning that the company moves from this
fifth sustainability practice back the first! And the
cycle repeats.
Lenovos EPEAT Gold monitors have over 25%
recycled material in them, and this is increasing
with the design of each new product. All of Lenovos
product lines use recycled plastic and metals; the
gold, silver and other precious metals are recovered
from end-of-life products. Using specifically postconsumer material has become a keen focus this
year for Lenovo and is an effective differentiator in
the market for the company.

components are designed to be recoverable

(the company can reuse them), meaning
11

materials, including mercury, by 3,220

metric tons (equivalent to the weight of
1.6 million bricks). In addition, the
electricity savings are 42.2 billion kilowatthoursenough to power 3.7 million U.S.
homes for a year.
And the power of the purchasers dollars
matters. Philips claims that 20% of its sales
come from green products, which offer
significant improvement in the companys
green focal areas (including packaging,
hazardous substances, and recycling and
disposing). Epsons customer surveys show
that 46% of its consumers pay attention to
green criteria when buying. Easy access to
green criteria is growing. For example, CEA
created www.myGreenElectronics.org to
help consumers choose products that
qualify for various eco-efficiency
certifications.
The Green Electronics Council notes that
90% of a products environmental
attributes come from design, so starting off
right is a critical step. A specific aspect of

DID YOU KNOW?

Savings from 2007 purchases
of EPEAT-certified products
are equal to 75.5 million
metric tons of primary
materials, 3,220 metric tons
of toxic materials and 42.2
billion kilowatt-hours
enough to power 3.7 million
U.S. homes for a year.

designthe reduction of energy

consumption during useis explored in the
next section. For consumer electronics
products, the energy used while the product
is in peoples hands typically exceeds the
energy used to make the product, so paying
attention to this phase of a products life
cycle is very important.

12

Energy Efficiency of Products

Energy Efficiency of Products

Products designed to be energy-efficient use

tool, the companies can select the raw

less electricity from outlets or run longer

materials, components, manufacturing

before needing recharging or new batteries.

processes, delivery methods, energy draw

This efficiency reduces greenhouse

during use, and reuse-recycling strategies

gas emissions and hazardous

that minimize energy consumption. All of

waste and saves money.

As with the cost

these energy-saving factors are decided

before the products design is completed.

reduction mentioned

To name just a few specific examples of energy

in the last section,

efficiency gains in consumer electronics

energy efficiency is a

products, Panasonic has reduced the power

goal of all consumer

consumption in its plasma televisions by 96%

electronics companies

since 2000. As a result, customers have saved

whether for physical

around 3.6 billion kilowatt-hours of electricity,

design, cost, or
competitive considerations.
Accordingly, continuous
improvement is seen across the industry in
nearly every product. Voluntary, marketoriented energy efficiency programs in the
CE sector strive to reduce power
consumption without sacrificing product
performance, features or functionality for the
consumer. In portable devices, long battery
life and alternatives to batteries are
differentiators, which bring the additional
environmental benefit of producing, using
and properly disposing of fewer batteries.
Several consumer electronics companies
have created Lifecycle Analysis (LCA) tools
that measure the energy consumption of

RACKING UP THE ENERGY SAVINGS

Intels new microprocessors use nearly
10 times less power than models from
just 18 months ago. The Core 2 Duo
processor uses 40% less energy to do 40% more work
than the previous Pentium processor. The total energy
savings from all the Core 2 Duo products in the
marketplace is equivalent to taking millions of cars off
the road. And the newer Xeon processor gives another
3560% efficiency gain over previous products.
Intel also works to improve the energy efficiency of
business data centers, which combine many processors.
Its Eco-Rack design reduces power consumption by
1618%, which, if it were used by all servers and data
centers in the United States, would save the equivalent
of the energy used by 986,000 homes. Each Eco-Rack
saves about $44,000 in electricity costs.
Intel provides employee incentives for innovations in
energy efficiency: Bonuses are tied to efficiency
milestones, and the Intel Environmental Excellence
Award recognizes highly innovative projects.

every aspect of a products life. Using this

14

FLAT PANELS WITH SLIM ENERGY USE

Lenovo understands its customers interest in
energy savings and has stepped ahead of the
curve. A few years ago, people were satisfied to replace their bulky
CRTs with flat panel monitors, which use half to two-thirds as
much energy. But Lenovo goes on to ask how efficient the flat
panel can be. Its monitors are up to 33% more efficient than other
flat panels on the market. And the company is leading innovations
in light-emitting-diode (LED) backlights, which use up to 75% less
energy than standard fluorescent backlights (while also improving
the color and brightness uniformity).

In 2007, Best Buy sold seven million units of

ENERGY STAR products. According to EPA
calculations, consumers saved $100 million
on their utility bills with these products, and
the atmosphere avoided 1.4 billion pounds
of carbon emissionsthe equivalent of
removing 128,000 cars from the road.
Reducing power consumption and increasing
energy efficiency at the product level is only
part of the story. Companies are also

enough to power more than 300,000

achieving major savings and environmental

households for a year. Seiko Epsons printers

benefit by improving the efficiency of their

used about four times less power in 2006 than

own internal practices, from manufacturing

they did in 2000, despite continual increases

to distribution to communications. The next

in product performance. And the widespread

sections delve into these behind-the-scenes

shift from CRT to LCD monitors that occurred

aspects of companies that produce the

earlier this decade reduced average energy use

consumer electronics that people enjoy.

per monitor by about 30%.

Certifications have been developed to
support energy efficiency. The EPEAT rating
includes energy efficiency as a consideration
and is focused on government procurement
channels. The ENERGY STAR certification,
however, is focused solely on energy
efficiency. The ENERGY STAR
program is a partnership
between the Department of
Energy, the Environmental Protection
Agency, and manufacturers. Overall, close to
35 million ENERGY STAR televisions,
monitors, audio, and video products were
sold in the United States in 2006 alone.

CHARGED UP ABOUT
ENERGY EFFICIENCY
Electricity is consumed by mobile
phone chargers that are left
plugged in after the phone is
charged (no-load energy use). Over the last nine
years, Nokia has reduced the amount of no-load
energy in its best-in-class chargers by 90%. Nokias
newest chargers go even farther, using up to 94% less
energy than the ENERGY STAR requirements in the
United States, and also meet the highest European
Union standards.
In May 2007, Nokia became the first mobile
manufacturer to put alerts into phones, encouraging
people to unplug their chargers. The energy that
could be saved globally if all Nokia phone users
unplugged their chargers when not in use would
power 100,000 average-size European homes.

15

Green Facilities and

Manufacturing

Green Facilities and Manufacturing

fewer chemicals and other inputs, and
generate less waste.
Recycling and reusing the water, metals
and other materials in a plant.
Testing products more intelligently so that
errors are caught earlier, creating less scrap.
These practices are beneficial for the
consumer, the company and the
environment. Using less electricity, gas,
water and paper means spending less
money. Using fewer chemicals means safer
products, a cleaner work space, and easier
Companies help the environment and save
money by adopting green practices in their
own facilities. For example, companies
participate in the same practices as people
do at home like recycling and turning off
unnecessary lights. From 2004 to 2007,
11 major consumer electronics companies
reduced their electricity use per one
million dollars revenue by an aggregate
average of 12.3% (Figure 1).
And in factories, nearly all kinds of waste

compliance with environmental laws.

Although much of this makes good business
sense, some companies are going the extra
mile to consciously become greener, setting
aggressive reduction goals and finding
creative new ways to improve their
environmental impact. For example, several
companies are considering composting their
food waste, which can then be used in
landscaping or sold for agricultural uses.

Electricity Reduction at Major

Consumer Electronics Companies

1
90

manufacturinga growing business

80

movement among consumer electronics

companies and their suppliersis helping to
reduce waste and create efficiencies all
around the world. Examples include:
Increasing material efficiency of production
processes so they use less energy, water,

MWh PER $M REVENUE

reduction are helpful to the Earth. Lean

70
60
50

12.3% Reduction
on Average of 11
Major Companies

40
30
20
10
0

2004

2007

17

2a

Greenhouse Gas Reduction at Major

Consumer Electronics Companies

Percentage GHG Emission Reduction per $M Revenue 20042007

racing to creatively up the ante with resource

conservation. Compact fluorescent bulbs are

40%
30%

replaced with the even more efficient LED

20%

Negative reduction
means an increase
in emissions

10%
0%

lights (containing no mercury). Motion

sensors in offices are supplemented by

-10%

sensors that shut off lights when the

-20%
-30%

Some consumer electronics companies are

Te n M a j o r C o n s u m e r E l e c t r o n i c s C o m p a n i e s

daylight is sufficient even when the room is

occupied. One-use, bio-based cafeteria

Effort is certainly required to achieve

supplies are replaced with plates and flatware

reduction in resources, and many companies

that last significantly longer than disposable

are meeting the challenge. Others can learn

materials. Telecommuting and e-commerce

from the top performers. Figure 2a shows

are helping companies cut down on their

that of 10 major companies that have

environmental footprint and overhead, and

reported greenhouse gas emissions from

at the same time cars are kept off the road

2004 to 2007, seven have achieved a

and electricity costs are trimmed.

reduction per one million dollars revenue.

It will pay for these companies to be ahead

Figure 2b shows that as an aggregate,

of the curve. According to the EPA, 30% of

however, these companies emissions per

energy in buildings is wasted or used

one million dollars revenue have increased.

inefficiently. Costs for energy and carbon

We found very often that a wide range of

behavior was seen among companies and
would encourage all players to move toward
the highest performance.

GHG Emissions at Major

Consumer Electronics Companies
GHG EMISSIONS PER $M REVENUE

2b

30
25
20

15% Increase on
Average of 10
Major Companies

15
10
5
0

2004

Making Money from Waste

At its Roseville, CA site, NEC
Electronics America has been
watching its waste since 1996. Eighty-seven percent
of what could have been trashed is being reused or
recycledand the latest project is making compost
from cafeteria food waste by combining it with grass
clippings from the company grounds. During the past
two years, 1.3 million pounds of waste has been kept
out of the landfillat a savings of $500,000.
In addition, NEC has reduced its hazardous waste by
95% during the past 12 years. No wonder they have
garnered six consecutive WasteWise awards from the
U.S. Environmental Protection Agency.

2007

18

emissions are on the rise: One carbon analyst

firm1 predicts that the price of a ton of carbon

Balanced Carbon

emissions may hit $40 as soon as 2015,

As of August 2008, Dell became a

carbon-neutral company. In this
case, this means that Dells operations are entirely
powered by renewable energy (wind, solar, biomass
and geothermal) directly or offset using renewable
energy credits (RECs). At this time, green power is
available for 20% of its operations, while the remaining
80% comes from RECs that subsidize purchases of
renewable energy by other organizations where green
power is more readily available. As renewable power
sources increase, a greater percentage of direct
renewables will be used.

sparking a 20% rise in electricity bills. The

next step for many of these players is to
perform careful measurements of their
greenhouse gas emissions and to better
integrate their knowledge of resource use into
their operations to realize even greater
environmental gains. Looking to
the future, many companies,
including Best Buy, Cisco, Intel,
and Nokia, are building or retrofitting

emissions that contribute to global warming,

Leadership in Energy and Environmental

this saving is a big win for the environment.

Design (LEED) facilities. LEED buildings save

an average of 2530% in energy use per
square foot. And given that buildings account
for nearly half of the greenhouse gas (GHG)

To budget for internal improvements, Intel

has developed a dedicated capital funding
program that allocates funds solely for the
purpose of conservation and efficiency
projectsincluding efficient lighting, smart

Saving Water Where It is Needed Most

system controls, boiler efficiency, chilled

Intels Ocotillo plant in Chandler, AZ, has achieved

excellent results in water conservation, a critical
factor in its desert Southwest location, through
internal water recycling and reuse of wastewater:

water improvements, and heating,

The plant produces 0.85 gallons of ultra-pure water for every

gallon of fresh city water.
Its water-reduction efforts save over 800 million gallons of
Chandlers fresh water per year.
Going even farther, Intel has helped replenish Chandlers
aquifermore than 3 billion gallons of water have been
returned for eventual reuse.
Due to Intels conservation efforts, it now takes less than 10
gallons of water to produce a Core 2 Duo processor as compared
to 1,800 gallons of water to make a pair of jeans, 120 gallons of
water for a single egg, or 65 gallons of water to produce a
gallon of milk.

ventilation, and air-conditioning

improvements. As a result of this program,
Intel has approved more than 200 projects
and saved over 400 million kilowatt-hours of
electricity since 2001.
Making positive changes inside the four walls
can easily keep a company busy for many
years. In addition, extending the efforts
outside the four walls can bring even
greater savings. After all, once the product
is built, it still needs to get into the
consumers hands.

New Energy Finance: http://www.eurekalert.org/pub_releases/2008-02/nef-tu021208.php.

19

Clean Delivery

Clean Delivery
Getting products from the raw materials

company reduced its fuel use by 90% by

stage, to factories, and then to stores

restructuring its assembly process to

requires teamwork by companies

eliminate a trans-Pacific flight. Many

throughout the supply chain. Efficient

companies are going even further by working

shipping and coordination of suppliers

with their suppliers and customers to

lower costs while ensuring that people

consolidate orders, choose environmentally

receive products quickly. Effective supply

efficient means of transport, and exchange

chain management is also crucial to

information more effectively.

environmental stewardship. The complexity

of a sophisticated supply chain is made
simpler when the overall goal is saving time,
energy and materials.

Most companies now require suppliers to

meet standards for clean, non-hazardous
materials in their components or
subassemblies. Philips even
performs sustainability
audits of its suppliers and
trains them in sustainability
principles.
Epson helps its suppliers
and customers by creating
for each of its products an
Ecology Profile that
shows all the materials and
energy used to create that
product. The profile can be
used to coordinate
environmental efforts
along the supply chain.

Consumer electronics companies ship

Would you think that shipping one product

billions of products across the globe every

instead of eight separate products would

year as they are assembled, distributed and

reduce environmental impact? Well, of

sold. Simply planning the routes efficiently

course! Todays consumer electronics

makes a big difference. For example, one

products combine into one product

21

functionality previously delivered by

multiple products. Shipping todays mobile

Responsible Take Back

phones, for example, can eliminate the

Best Buy makes recycling consumer

electronics products easy. Its new
take-back program, launched at 117
stores in summer 2008, allows consumers to bring
in monitors, TVs, and similar devices for free
recycling, no matter where the items were
purchased. This is the first ongoing program of such
broad scope at a retail store in the United States
and is an extension of Best Buys previous special
recycling events that brought in 1,700 tons of
electronics during 2007. In addition:

additional shipping of a camera, personal

digital assistant (PDA), global positioning
system (GPS) device, clock or watch, landbased phone, music player/recorder, or even
TV or computer. With further consolidation
of functions we need into less hardware,
everyone wins: Consumers can do more with
less, companies benefit through innovation,
and the carbon footprint from the several
stages of product delivery is smaller. The next
generation of products is likely to combine
even more functionality.
Another aspect of clean delivery is employee
commuting and travel: How are people
getting to work and moving around to do
business? Nearly all of the companies we

Offsetting with Care

Carbon offsets are a means of reducing
the harm of carbon emissions by
performing an equivalent action that
reduces CO2, such as planting trees or buying power from
solar or wind sources. Nokia understands that it is preferable
to reduce emissions directly, but in the case of necessary
travel, the company has an offsetting program: In late 2007,
Nokia partnered with Climate Care.
When employees come back from travel, they enter their trip
information on the Nokia internal website, and the company
purchases equivalent offsets, which go to investment in
clean-energy technologies. It is currently a volunteer
program that goes on the employees expense report but
could become more fully endorsed as it gains popularity.

Every store has a kiosk that takes items such as

rechargeable batteries, cell phones, ink cartridges,
and DVDs. Last year, 41.5 tons were collected.
When customers buy a new TV or appliance, they
can return the old one for recycling, which has
brought in more than 9,000 tons of electronics
and 32,000 tons of appliances.
Non-profits and community organizations can
apply for grants to host recycling events. Best Buy
has spent $96,000 to support 77 events that
brought in 1,300 tons of electronics.
And Best Buy recycles other materials from its own
distribution centersthis year alone, 79,000 tons of
cardboard, 10,000 tons of wood, 4,400 tons of
plastic, and 3,600 tons of metalpushing Best Buy
to the number one spot among retailers.

spoke with are taking steps to reduce

business travelto the tune of reducing trips
by 20% to 50%a huge savings in carbon
emissions. In lieu of automatically packing a
bag and flying across the continent or globe
for one meeting, they are bundling trips and
using trade shows or technological innovations
such as videoconferencing, web-conferencing,
and software installed to remotely monitor
22

DID YOU KNOW?

The top 20 respondents in a
survey conducted by Sims
Recycling Solutions have
recycled nearly 600 million tons
of used electronics products.

suppliers. Few companies have taken steps

to measure employee commutes, but
many companies offer subsidies for using
public transportation, give preferential
parking to carpools and hybrid electric or
electric vehicles, start bike-to-work clubs,
and/or have telecommuting policies in
place.
All of these efforts are made in recognition
that unnecessary movement generates
waste and consumes resources.
Once the product reaches the store, is the
manufacturer finished with it forever? No.
Companies are an integral part of society,
and retain an interest in their products
during the time people use them and also
at the products end of life. In the case of
consumer electronics, creating the cycle of
value often involves product
stewardshipmaking sure that electronics
products are properly recycled and that
components in working order are reused
after first use. This activity can be
undertaken by companies of all sizes and is
easy to begin on a small scale.

Partnerships for Success

Cisco Systems is a leader in
creating partnerships for clean
delivery, which comes down to
realizing: We cannot do this alone.
Cisco worked with a packaging supplier and its
customers to design a multi-pack (packaging
several products together) that is 77% lighter and
takes up 84% less space than the original, in
addition to using more environmentally benign
materials. It improves customer convenience,
helps the environment, and saves moneyand
each partner could not have done it alone.
Another innovation is Ciscos Telepresence
product, which eases the communication needed
for top-notch teamwork. Featuring a full-video
screen that simulates sitting together at a
conference table, Telepresence allows people to
interact far more richly than by phone or e-mail.
Cisco uses it to collaborate with overseas
suppliers, enabling strong partnerships and clear
communicationwithout the need for longdistance travel.

23

Some examples of successful recycling

Making the Most of

Each Product

programs include:
Hewlett-Packard has recycled more than

When a customer replaces an

older Blue Coat networking
product with a newer one, Blue Coat collects the
replaced productfor freeand harvests working
parts to use in refurbished products. With this
take-back program, customer convenience and
business sense win over landfill:

400 million pounds of computer hardware

since it began its recycling program in
1987. Dell and Sony are also major
electronics recyclers.
Crutchfield, an electronics distributor and

Customers have a free and easy way to pass along

replaced unitsand gain the peace of mind that
these will not become electronic waste.

retailer based in Virginia, has kept 600,000

pounds of waste out of the local landfill

Customers still using legacy products never have

to worry about the company running out of
replacement parts.

through its new recycling program. For

example, Crutchfield replaced polystyrene

Blue Coat gains products to refurbish at nominal

costsaving about one-half million dollars a year.

peanuts with biodegradable starch pellets in

its 950,000 outbound shipments this year

This take-back system was the idea of two employees

participating in Blue Coats Environmental Heroes
program, created to generate top-notch
environmental ideas.

a tremendous gain for the environment.

Hometech, a 15-employee installer of
audio/video equipment, has created a
partnership with a nearby recycler to handle
the end-of-life equipment they receive.

Reuse Processes at Consumer

Electronics Companies

Kodaks single-use camera might at first

in 2007 alone, Kodak collected 120 million
single-use cameras of all manufacturers
types for recycling. That brings the total
number of cameras recycled under Kodaks
program since its inception in 1990 to 1.2
billion. Furthermore, nearly all its singleuse cameras now use recycled parts.
As shown in Figure 3 in a survey of 64
electronics companies conducted with Sims

30
NUMBER OF RESPONSES

seem to be an environmental burden. But

25
20
15
10
5
0
Original Form
(Refurbished)

Modules/
Subsystems

Components/
Materials

Q: Which parts of your products

do you reuse?
A: Companies use whole product,
its modules/subsystems, and its
component parts.
Multiple Selections Allowed

Recycling Solutions, 69% of respondents are

24

Sixty-nine percent of the Sims survey

respondents have written or enforced
standards about how their products are
recycled, and environmental protection is
cited as the top reason for doing so (Figure 4).
Sixty-five percent engage in tracking and
auditing their recycling activities. Also of
interest are the reasons companies cite for
their environmental success.
The top responses were:
Clear metrics and goals
Company-wide education and
communication of goals
Support from top leadership
already recycling, and another 14% are

Linking the changes to the

promotion /review process

setting up programs, while 38% are reusing

some form of the electronics products they
make or usethe product as a whole, its

Attention Paid to Quality of

Recycling Done for Consumer
Electronics Products

modules and sub-systems, or its components

reap financial gains, such as avoiding the
purchase of some new materials through
reuse and generating revenue from nolonger-needed materials through recycling.

30
NUMBER OF RESPONSES

and materials. The majority stated that they

25
20

10
5
0

These 64 companies alonewhich span a

representative range from small (<$10M) to
large (>$10B) playershave averted the
accumulation of more than 765,000 tons of
electronic waste. And when we consider the
top 20 players, nearly 600 million tons of

31%

15

Permitted
Regions

Maximum
Permitted
Landfilling

Human Environmental
Health
Protection

NO

Q: Have you written and enforced

standards for the way your
products are recycled?
A: 69% have written and enforced
standards.
Multiple Selections Allowed

used electronics products have been recycled.

25

Giving Back

Giving Back
Companies also give back to society, creating

approximately $450,000 for this cause. And in

a cycle of value that contributes to global

Mexico, 61 HP employees planted 600 trees

sustainability. A corporations giving-back

as part of a reforestation project.

program can help to protect and restore the

environment we all share. Some of the main
avenues for social responsibility are direct
giving, social programs, or other responsible
business practices.

Formal corporate social responsibility (CSR)

programs have existed for many years;
recently a number of new developments have
occurred. CSR now often includes explicit
environmental goals, far beyond compliance

At Intel, for instance, 3840% of employees

with regulations. In addition, philanthropic

worldwide do volunteer work at non-profit

efforts have taken on a more strategic flavor.

organizations, to the tune of nearly 1 million

For example, several companies offer health

hours per year. In many cases, Intel pays the

care assistance in rural villages where their

non-profit $10 per hour through a company

factory workers live, which helps people and

matching program. Panasonics employees

also creates a healthy workforce. It is also

participate in WalkAmerica, benefiting the

worth noting that nearly all major consumer

March of Dimes,
and have
raised

electronics companies have a dedicated

section on their website with information on
environmental and social benefit programs. In
these ways, CSR is seen not purely as an
extra, but as a more integral part of
operations and communications.
Consumer electronics companies also give
back by closing the information loop with
stakeholders such as customers and investors.
By reporting their energy, water, and chemical
use, as well as clearly communicating their
environmental goals and innovations,
companies let all of us know what is being
done to protect the air, water, land, and
natural systems. This informs our choices as
consumers and citizens.
27

building its products to be ecologically sound,

shipping them in a resource-conscious way,
and handling their recycling/reuse, it has a much
clearer idea of how to make the next round of
design changes. The cycle goes back to design
for environment. Just as consumer electronics
products have higher technical performance
with each generation, they can have higher

DID YOU KNOW?

At Intel, 3840% of employees
worldwide volunteer at non-profit
organizations, to the tune of nearly
1 million hours per year, often matched
by $10 per hour contributions to the
non-profit by Intel.

environmental performance too. Imagine if

companies competed for the ecological
superiority of their products in addition to
lower prices and more technical features.
In many ways, they already are. Reducing
resource consumption during production
brings competitive advantage in the form of

Some companies have written environmental

cost savings. And as more consumers demand

reports for many years, beginning as early as

ecological features such as lower power use

1987. Companies often find that in addition to

and recyclability, companies will respond.

providing the outside world with information,

these reports can actually improve operations
by bringing greater awareness of their own
resource usage. In gathering data for this
report, we found that most large consumer
electronics companies provide environmental
data, but very few small companies do. It is
expected that more and more companies will
participate in the future as reporting
standards are raised and interest in
environment sustainability accelerates.
Giving back also describes the way
companies move toward environmental
sustainability. Once a company has actually

Setting the Standard

Hewlett-Packard sets the standard for
keeping ahead of the curve in
sustainability. It began environmental
work in 1992, and now includes 100 full-time
employees dedicated to its sustainability programs, in
addition to many other volunteer programs throughout the company. Its efforts span all five categories
outlined in this report, from design for environment
to a sophisticated recycling program.
HPs broad-based efforts also position the company to
serve as a leader in creating environmental standards.
The following are just a few areas where HP has helped
create the structures that serve the environment:
Focused Improvement Supplier Initiative (FISI) in China
Electronic Industry Code of Conduct (EICC)
Carbon Disclosure Project (CDP)

gone through the process of designing and

28

Looking to the Future

Looking to the Future

How do we know? A quick glimpse at some
of the more innovative products already on
the market indicates what might be headed
for the mainstream. For instance, Sonys
flat-screen TV using OLED (organic lightemitting diode) technology offers the
potential for greater energy savings in
televisions. OLEDs do not require a backlight.
And OLED production could be less materialintensive, especially if they can be made
using continuous processing techniques
rather than standard batch production.
Already used in mobile phones and car
This report highlights the consumer

stereos, OLEDs are just entering the TV

electronics industrys best efforts and

market with Sonys pilot 11-inch model.

successes to date to be sustainable leaders.

Of course, many other consumer electronics
companiesmore than we could mention
have set sustainability goals and are making
good progress. And on the path to
sustainability the industry will need, where
possible, to reduce and eliminate waste, use
renewable and benign materials, minimize
product movement around the world, and
run carbon-neutral (or even carbonpositive) facilities. CEA, as an advocate for

Many companies are exploring solar power for

consumer electronics products, from
standalone portable chargers to flexible panels
integrated onto the product itself. For example,
Xantrex sells the XPower Powerpack Solar
battery system, which runs a laptop for three
hours or a television for 45 minutes. Voltaic
Systems and Innovus Designs sell laptop bags
with integrated solar panels to charge your
computer on the way to the next meeting.

its members, fully supports the industrys

Furthermore, cutting-edge research and

progress toward environmental

development work suggests that some

sustainability. All stakeholders, including

interesting innovations are in store farther in

consumers, companies, and government

the future. Sony has developed a bio-battery

groups, can expect even more progress in

that generates electricity by breaking down

the coming years.

sugar, analogous to the process that occurs

30

in living organisms. The battery achieves an

semiconductor reclamation process in its

output of 50 milliwatts at 0.3 volts, the

Burlington, VT, manufacturing facility. The

highest for batteries of its type; using several

facility makes silicon wafers that in turn

together easily powers a portable music

become the chips used in consumer

player. A variation on using an external

electronics products. IBM now converts the

bio-battery is using human muscle power

scrap wafers into material that is used to

directly: The Eco-Media Player runs for 40

make solar panels.

minutes after you wind it up mechanically.

Imagine the freedom of needing neither
batteries nor a sunny day!

And new materials such as carbon nanotubes

could be used to reduce the electricity
demand of electronics. Academic and

Microsoft, Philips, Honeywell, and others

industry researchers have already succeeded

have publicized their concepts for the

in producing functional transistors out of

home of the future, which invariably

nanotubes, some of which use 13 times less

include a fully integrated electronic system

energy for the same amount of work (or

linking the entertainment, security, and

operate 13 times faster than conventional

information systems of the house. In these

electronics at the same energy consumption).

models, intelligent devices have become

ubiquitous and nearly invisible,
automatically adjusting to the human
inhabitants locations, the time of day, and
the function being performedall with high
energy efficiency and pleasing design. As
these electronics are designed to fit in with
human life, they also have the potential to
be more ecologically sound if designed that
way from conception. These examples and

An industrys steps toward environmental

sustainability can occur in sudden leaps or
steady movement forward. The consumer
electronics industrys environmental leaders
and their significant progress highlighted in
this report can inspire all companiesinside
and outside the industryto take bold steps
for the benefit of all: companies, consumers,
and the environment.

others show that the trend in electronics is

toward reducing environmental impact.
While technological advancement exists for
the design of new products, similar
innovations are already occurring, and will
accelerate, for production processes. For

Toward environmental
conservation, CEA opted to
present this report in electronic
version only. In kind, please
consider the environment and
refrain from printing this report.

example, IBM has developed a novel

31

About the Authors

We were delighted when the Consumer

five environmental sustainability practices:

Electronics Association chose

eco-design, energy efficiency, green facilities

TFI Environment to write the consumer

and manufacturing, clean delivery, and

electronics industrys first sustainability

giving back. These five practices are meant

report. We see it as an opportunity to

to capture the progress being made from

(1) showcase the industrys best new

cradle to cradle all along the supply chain of

practices for reducing its environmental

the consumer electronics industry. Our

impact, and (2) encourage the rest of the

hope is that the diversity of examples and

industry to meet and beat these vital

breadth of coverage convey both the

achievements.

complexity of moving toward sustainability

Given increasing concern over climate

change, diminishing natural resources, and

and the creative engagement of the industry

with this challenge.

participation by more and more people in

Special thanks go to our team: Co-Author

creating a healthy environment, we welcome

Dr. Kim Allen, Interviewer Anne Feith, and

the opportunity to highlight ways the

Design Coordinator Cathy Dalton. Together

consumer electronics industry is using fewer

with CEA we recognize that it will take all of

resources and mitigating its impact on the

us, with expediency, to sustain our planet.

natural environment.
This industrywhose role
for decades has been to
simplify tasks and provide

Pamela J. Gordon

entertainmentalso has

Founder of Technology Forecasters Inc.

Lead Consultant for TFI Environment

a powerful and important

role to play in protecting the environment.
This report highlights leadership examples
from the consumer electronics industrys
environmental responsibility, and it shines a
light on upcoming technologies and business
practices for a brighter future.
We have structured this report according to
consumer electronics companies progress in
32

For more information contact:

The Consumer Electronics Association (CEA)
1919 South Eads Street
Arlington, VA 22202
(703) 907-7600
www.ce.org

2008 Consumer Electronics Association (CEA). All rights reserved.

All products and trademarks named herein are the property of their respective owners.
Image on page 23 courtesy Sims Recycling Solutions.