BCG and Unlocking Wealth from Waste: The E-Waste Goldmine
As e-waste mountains soar, there's a golden opportunity for the metals and mining sector to turn tech trash into treasure.
The digital age's downside is a looming e-waste crisis, set to double by 2050. Yet, within this challenge lies a lucrative opportunity for the metals and mining industries. The Boston Consulting Group (BGC) sheds light on this.
Everyday items, from smartphones to laptops, are discarded, contributing to a growing heap of e-waste, only 20% of which is recycled globally. The rest? Dumped in landfills or incinerated. The United Nations pinpoints the metals in these discarded electronics alone as valued at an eye-watering $91 billion. Enter the concept of 'urban mining', a welcomed solution to this escalating issue.
In a discerning LinkedIn post titled ‘The Golden Opportunities Buried in E-Waste’, BCG’s Timm Lux, Associate Director of Non-Ferrous Metals & Recycling, highlights the untapped value in e-waste beyond its materials' monetary worth. He argues that tapping into e-waste recycling could bridge the gap for essential minerals like copper, imperative for the energy transition, whilst mitigating supply chain risks from geopolitical tensions.
"The value of e-waste goes way beyond the monetary worth of materials being thrown away," he said.
The value of e-waste goes way beyond the monetary worth of materials being thrown away.
"Recycling e-waste could fill a looming supply gap for a number of critical minerals, such as copper – which has a central role in the energy transition. It could also help protect against the risk of supply chain disruptions from geopolitical tensions."
Why local is the way to go
Timm champions localised solutions over global shipping of e-waste for processing.
This approach could significantly reduce the risk of poor labour conditions and aid companies in tracking the origin of raw materials in their products.
Despite the clear benefits and considerable amounts of 'critical materials' buried in e-waste, a tiny fraction is currently recycled.
According to BCG's analysis, the volume of global e-waste is projected to more than double, reaching a staggering 137 million tonnes annually by 2050.
"For example,” Timm said, “[not shipping e-waste] can lower the risk of unacceptable labour conditions for the people sorting the waste and cracking open devices.
"Yet only a fraction of this e-waste is being recycled," he added, pointing out that among this waste “is a significant amount of ‘critical materials”.
The four pillars to reducing e-waste
The strategy to tackle the e-waste issue is multifaceted, as outlined by BCG. Here’s a rundown:
- Boosting consumer awareness The key to accelerating e-waste recycling lies in educating people about how to do it. Many devices end up forgotten in drawers or thrown away due to a lack of awareness. Continuous education and making e-waste collection convenient are critical
- Partnering for profit Emerging players in the market should scrutinise the recycling process from start to finish, identifying primary value drivers and operational costs. This involves assessing collection logistics, feedstock quality and metal recovery rates. Forging partnerships with entities valuing the eco-friendly aspect of recycled metal, like luxury goods companies seeking sustainable materials, is essential for securing quality feedstock
- Adhering to regulations New laws are promoting local e-waste recycling markets. For example, the European Union's extended producer responsibility (EPR) mandates recycling of old devices. Similarly, the US has introduced clean energy incentives and state-specific EPR regulations, fostering local recycling efforts
- Embracing the ecosystem Involvement extends to electronics manufacturers, retailers, waste collectors and specialist services aiding large corporations in responsibly discarding and recycling outdated equipment. Ultimately, companies are encouraged to adopt circular design practices, making products easier to repair, reuse and recycle.
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