Managing eWaste through Reuse and Recycling

1
The 3 Immutable Laws of eWaste Management, and
Other Recycling Truths
Presented to The Federal Network for
Sustainability By Robert Houghton
2
The 3 Immutable Laws
eWaste Management
3
Recycling Truths
5 Essential eWaste Best Practices

• Centralize (process)
• Sanitize (data)
• Optimize (value)
• Scrutinize (disposition)
• Analyze (audit trail)

4
Sanitize
Failsafe Data Security Best Practices
Testimonial
Redemtech showed the lead in data
security audit trails and reporting
capabilities. Judi Huitt BP Amoco

• Data Security Flaws Revealed
• Infraworks Sanitizer
• East-Tec Disk Sanitizer
• Norton WipeInfo
• NTI Diskscrub
• Ontrack Data Eraser
• Wipe Clean
• Redemtech Data Erasure was the only application
  to successfully overwrite all hard disk sectors
  on each of the six PC configurations under test.

• Physical security
• Automated erasure
• Systematic verification
• Audit Trail
• OS bios independent
• Special procedure for servers and arrays
• Quality control audit

5
Optimize--Reuse
Reuse Options
Testimonial
We took a problem that nobody wanted to deal
with and now our CEO is on the front page of the
Birmingham paper giving away computers to needy
kids. It is a great program and we continue to
use it.

• Refurbish and Reuse
• Web Inventory
• Testing
• Software Imaging
• Repair
• Upgrade
• Cleaning
• Repackaging

Redeploy
Economic Value
Employee Sale
Donate
Social Value
Ken Livesay, CIO HEALTHSOUTH
6
Optimize--Remarket
Testimonial

• Value Recovery
• Diversified channels.
• Optimal turn and price.
• Revenue share model improves return.
• Market makers need high volume.

Secondary Market
Sell as quickly as possible so you can get some
resale valueif you stack them in your closet, if
you leave them there for two months, that could
be the difference between receiving a check and
paying an invoice. Mike Bowman Verizon Wireless
International
Wholesale
Highest Turn
Refiners
Web
Parts
Auction
End User
Highest Value
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Optimize--Recycle
Economical, Responsible, and Fully Documented
Testimonial
Pay attention to what happens to materials going
out your back door Assess your practices You
can play regulatory roulette, but if you lose,
you lose in a big way. Steven Rowe Preston,
Gates Ellis

• Legal
• Compliance with all Federal, State, and Local
  laws.
• Waiver of Liability issued with each audit
  indemnifies the customer.

• Environmental
• Electronic scrap is recycled, never landfilled.
• Disposition of materials is controlled and
  documented.

• Social
• End materials refiners are vetted for
  environmental and labor practices.
• Usable systems are sold or donated rather than
  recycled.

• Financial
• Recycling is a last resort. Highest disposition
  is always sought.
• Service on valueless product is limited to risk
  mitigation requirements.

8
Total Cost of Ownership

• Recycling equals 5 of TCO, 1/3 as much as
  purchase.
• Ad hoc End-of-Life programs increase cost and
  risk.
• End users will increase focus on EOL to reduce
  TCO.

Recycle
Purchase
Use
Total TCO 5236 per year IDC, August, 1998
9
Disposition Costs
Testimonial
Internal Costs of Disposition
Staff productivity increasedwe gained better
control of our idle assets. Mike Bowman Verizon
Wireless
10
Plan for Negative Residuals
Testimonial
Staff productivity increasedwe gained better
control of our idle assets. Mike Bowman Verizon
Wireless
Break-Even
Disposition Cost
Negative Residual
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Low Price--High Performance Lowers Residual
Values
Price Performance
Price/Performance Improvement and Economic Life
New Systems
Used Market Price
T
i
m
e
Shortened
Economic Life
100,000
US
H0
9021
per MIPS
H2
Example Used Market Values of IBMs Large
Systems
H5
10,000
9672
G1-G5
IBM System
1,000
Shortened
Economic Life
6 years
5 years
3-4 years
100
90
92
94
96
98
00
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Scrutinize
Know Where It Goes.

• Corporate policy will require end-to-end control
  of materials streams.
• All points in the disposition stream must be
  fully vetted.
• Low commodity values require elimination of
  middlemen.

13
State of the Industry

• Legal
• US liabilities for data erasure and environmental
  compliance are increasing.
• Export restrictions on e-waste are non-existent.

• Environmental
• Significant amounts of electronic scrap are in
  storagea future liability.
• Asset management and and audit trail are the best
  environmental protection.

Testimonial
Redemtech showed the lead in data
security audit trails and reporting
capabilities. Judi Huitt BP Amoco

• Social
• Exports of e-waste place workers and environment
  at risk.
• A significant need still exists in the U.S. to
  bridge the digital divide with older systems.

• Financial
• Equipment values are often exceeded by the cost
  of disposition.
• Failure to budget for recycling expense leads
  many to dubious practices.

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The Enterprise Solution to Technology Recycling
www.redemtech.com