The monetary aspect is just one of the costs concerned with electronic waste, writes Liam Kilmister. But what can manufacturers and consumers do to stem the tide?
The true cost of electronic waste (e-waste) extends far beyond the financial, although monetary value is certainly a factor to consider. E-waste encompasses any electronic device or component that has been discarded, including wires, smartphones, and televisions. The high cost of this waste stream comes from plastics, elements, and chemicals, especially in microchip components.
The world is at a crossroads. In 2022, 62 million metric tonnes of e-waste were generated globally, which is expected to grow to 82 million by 2030. However, technological developments, such as wind turbines and electric vehicles, are essential for minimising environmental impact and mitigating the effects of climate change.
The Basel Convention classifies e-waste as hazardous for a reason. Tech innovators, large electronic manufacturing plants, and end consumers must all take responsibility for their contribution to the e-waste crisis. Understanding the actual cost of e-waste is a crucial first step.
Environmental cost
Some smartphones include thousands of tiny electronic components or microchips. These minute chips can contain over 30 elements, many of which are classified as rare earth elements (REEs). These REEs are essential in electronics due to their unique magnetic or luminescent properties. As the name suggests, these metals are often hard to come by.
REEs are finite and found in small deposits in only a few countries, making them highly sought after. In many cases, REEs are mined in developing countries with poor labour conditions. Mining for REEs is not regenerative and causes environmental degradation, including deforestation, water contamination, and soil erosion.
For every tonne of REEs produced, the mining process typically creates 13 kilograms of dust, 9,600-12,000 cubic metres of waste gas, 75 cubic metres of wastewater, and one tonne of radioactive residue. As more electronic devices are discarded, more REEs must be mined, while existing REEs end up in landfills.
As well as valuable REEs, electronic components contain toxins such as lead, mercury, and cadmium. When left to rot in a landfill, these chemicals contaminate nearby soil and water. While you may think that recycling is the answer, common e-waste recycling practices are also fraught with environmental challenges.
Smelting is one of the most common methods for recycling e-waste to recover small amounts of REEs. However, smelting requires significant energy to reach temperatures over 800 degrees celsius. This heat often comes at the cost of fossil fuels and carbon emissions, while other harmful toxins are also released into the atmosphere.
Human cost
Agbogbloshie in Ghana is one of the world’s largest dumpsites for e-waste. Besides harming the environment, over 40,000 locals depend on salvaging e-waste for their livelihood. Informal recycling practices here also significantly risk workers’ health.
Like some other developing countries, Ghana receives large quantities of e-waste from Western nations, falsely labelled as ‘repairable’. In reality, this e-waste is dismantled by hand and burned in large bonfires to extract small amounts of valuable metals, including copper.
Studies in Agbogbloshie found that locals face health risks, including skin disorders, respiratory issues, and other diseases. These are due to exposure to hazardous chemicals and toxic fumes from recycling e-waste. Research by the School of Public Health at the University of Ghana found high traces of lead, arsenic, and mercury in the breast milk of local nursing mothers.
Agbogbloshie is just one example of the harm e-waste can cause to human beings.
Financial cost
Many electronic manufacturers are primarily financially motivated. Therefore, it is essential to highlight the financial implications of high levels of e-waste.
Each year, the e-waste created globally is worth over $62.5 billion. This figure is higher than many countries’ entire GDP (gross domestic product). Considering the increasing prices of REEs due to scarcity and rising geopolitical tensions, it is astonishing that so many electronics are discarded without a second thought.
Recycling parts also fails to plug the leaking financial hole of e-waste. Many current recycling practices are ineffective at recovering all of the REEs present in electronics. Ultimately, when REEs leave our economy as waste, the demand for more material extraction increases.
Even if electronic manufacturers wanted just to throw out their e-waste and be done with it, this, too, incurs costs. Businesses and consumers alike need to pay high disposal fees to dispose of e-waste through proper channels. Especially for smaller businesses and end consumers, the cost of adhering to environmental regulations and ethical disposal adds up quickly.
Address e-waste at its core
Large electronic manufacturers and end consumers must tackle e-waste head-on. Household electronics owners should focus on reducing, repairing, and recycling what they own. Consumers can also influence change on a large scale with their wallets by purchasing electronics ethically.
“We live in an age of overconsumption, so circularity requires a mindset change. Consumers and manufacturers must work to consume less and redistribute more, at the earliest possible stage. Not only is this better for the environment, but it makes financial sense too,” explains Component Sense business development manager, Morag Dine.
Electronic manufacturers need to focus their efforts and resources on transitioning to a sustainable supply chain and circular business model. A productive first step is reducing the amount of e-waste in the form of excess and obsolete (E&O) components. This can be achieved through more accurate forecasting and redistributing surplus stock to other manufacturers instead of scrapping.
Companies like Component Sense facilitate the redistribution of brand-new, never-used E&O components through the grey (secondary) market. Keeping electronic components and REEs in a circular electronics industry reduces the amount of e-waste produced and the need for mining.
About the author: Liam Kilmister is senior marketing strategist at Component Sense.
