Current Initiatives

Computer Take Back and Recycling

On behalf of Calvert Group we have initiated dialogues with six leading computer companies - Apple Computer, Compaq Computer Corp., Dell Computer Corp., Gateway Inc., Hewlett-Packard Co., and IBM - urging them to commit to goals for increased recycling and reduced use of hazardous materials in manufacturing. This includes recovering their product once they reach the end of their useful life, and design changes to facilitate recycling.

The European Union is pioneering an alternative strategy known as 'Extended Producer Responsibility' (EPR) that shifts financial responsibility for managing end-of-life of a product from government to producers. In that spirit, 'Product Stewardship' programs offer a model for sharing responsibility among manufacturers, retailers, consumers, and existing waste management infrastructure. By extending the responsibility of producers across the product's life cycle to include the post-consumer stage, producers have new incentives to develop economically feasible recycling systems and to design products to meet environmental criteria.

Calvert has asked each company to assess the feasibility of taking financial and physical responsibility for products throughout their lifestyle. This includes studying the implications of a commitment to setting goals for reduced use of hazardous materials in manufacturing; and for collection, detoxification, disassembly, and recycling of obsolete equipment.

Resolutions in 2002 have been filed at IBM, Hewlett-Packard, Compaq, Gateway, Dell, and Apple. Company dialogues are currently underway at all six companies.

Exporting Toxic Trash to Developing Countries

Concern about the fate of old computers was heightened on Feb. 25, 2002, when Silicon Valley Toxics Coalition and Basel Action Network released a report entitled "Exporting Harm-The High-Tech Trashing of Asia." The report confirms what environmentalists have long suspected. "Recycling" of old computers can often mean dumping the discarded components in developing countries such as China, India and Pakistan where valuable materials are extracted by poor people using primitive methods that pose a threat to their health.

The report estimates that 50% to 80% of electronic waste collected for recycling in the U.S. is not recycled properly but stripped of a few valuable parts and sold for scrap to overseas buyers. What passes for "recycling" in those operations can involve open burning of plastic wastes, and exposure to numerous toxic components such as lead dust. "The open burning, acid baths and toxic dumping pour pollution into the land, air and water and exposes the men, women and children of Asia's poorer peoples to poison," the report states.

The investigation focused on an area known as Guiyu in Guangdong Province, China, where about 100,000 poor migrant workers are employed breaking apart and processing obsolete computers imported primarily from North America. The workers were found to be using 19th century technologies to clean up the 21st century wastes.

The operations involve men, women and children toiling under primitive conditions, often unaware of the health and environmental hazards involved in operations which include open burning of plastics and wires, acidic extraction of gold, melting and burning of toxic soldered circuit boards and the cracking and dumping of toxic lead laden cathode ray tubes, according to the report. The investigative team witnessed many tons of electronics waste being dumped along rivers, in open fields and irrigation canals in the rice growing area. The pollution in Guiyu has become so devastating that well water is no longer drinkable and has to be trucked in from 30 kilometers away for the entire population.

Based on our current information, Hewlett-Packard is the only company with safeguards in place to prevent its discarded machines from being exported overseas. The full text of the report, "Exporting Harm-The High-Tech Trashing of Asia." is available at: www.ban.org or www.svtc.org.

A Calvert resolution at Hewlett-Packard asking the company to study the feasibility of taking responsibility for computer recycling received the support of 8.3% of the vote (92 million shares). This is an excellent first-year result. The April 29 vote was the first resolution on computer recycling to be voted on by U.S. shareholders. A May 16 vote at Gateway Computer yielded 7.5% for the same resolution.

The Recycling Group of Apple's Environmental Health and Safety Department developed a take-back program for Apple's Education customers. Since May 2001, Apple has provided these customers a shipping label and collection service for a fee. The service recovers equipment from any manufacturer and transports units to a third-party recycling vendor.

Apple intends to expand the program to small businesses and individual customers in the second half of 2002.

Apple's Environmental Technologies and Strategies Group is responsible for ensuring DfE guidelines are incorporated into new product development through Apple's Products Environmental Specifications. Apple publishes the Environmental Attributes of select new and past products online and details.

Compaq Computer Corp.

Compaq has only recently begun exploring opportunities to offer take-back programs. The company is currently conducting a take-back program pilot project in 8 mid-west states. Customers dial 1-800 number and request a shipping label to recycle for $27. Compaq also offers a discount on a new computer.

A Design for the Environment program has been operational since 1994. The program focuses on five areas: Energy Conservation through user-selected power conservation and increased battery life, Disassembly, Reuse and Recycling, Upgradability, and Serviceability.

Dell Computer Corp.

In the United States, Dell offers three services: customers can trade-in, donate, or auction their obsolete computers through the online service called Dell Exchange.

Dell Exchange is an online service for consumers to: 1) trade-in through the TradeUps program, 2) donate to the National Cristina Foundation, or 3) auction obsolete computers higher than 486 models. Dell Financial Services also offers Asset Recovery Services, a fee-based service for business customers to collect and recycle obsolete equipment. Product take-back programs are available in Germany, Sweden, Norway, Holland, Denmark, and Japan; government fee-based program is available in Taiwan.

In 1996, Dell introduced the OptiFrame, a modular and upgradeable design first used in OptiPlex desktop products. The chassis consists of an internal metal frame with a plastic shell and is 100 percent recyclable. In 2000, Dell introduced their Design for the Environment program, a formal process to foster responsible environmental decisions during product design and development. The program includes specifications for product design and packaging, and incorporates Eco-label qualifications for Blue Angel, TCO certifications, and EnergyStar.

Gateway Inc.

Gateway offers two programs as part of their end-of-life service. The Trade-In Program offers customers a rebate between $100-$350 for any brand of old computers at least 24 months after purchase, to credit towards the purchase of a new Gateway computer. The second program is a Recycling/Donation Benefit, where the company offers a rebate of $50 for donating or recycling old computers to a preferred charity (Salvation Army or Goodwill) or recycling at individually selected recycling center.

Gateway does not have a Design for the Environment program we are aware of.

Hewlett-Packard Co.

HP offers a computer hardware recycling service for customers to return unwanted computers from any manufacturer for $13-$34 depending upon the type and quantity (under 10 items) of hardware. Custom order quotes are also available for large quantity orders (11 items or more) and large-size items including mainframes and rack-mounted equipment. Customers order the recycling service online and schedule a pick-up within 2-3 business days.

HP Product Stewards manage product stewardship initiatives by communicating guidelines detailed in the General Specification for the Environment to design engineers and contract suppliers. Product Stewards make recommendations to design engineers for Design-for-the-Environment improvements, working as consultants with product development team to integrate guidelines into the product development plan. Numerous HP products that have incorporated DfE recommendations have qualified for eco-labels, such as EnergyStar in the U.S and Blue Angel in Europe.

IBM

IBM's PC Recycling Service allows customers and small businesses to dispose of any manufacturer's PC equipment (including system units, monitors, keyboards, scanners, printers) for $29.99. This fee includes a UPS shipping label for one cube box that customers provide (up to 26 inches in length and 69lb in weight). Customers order the service with a new purchase online or by calling Customer Service Toll-free. IBM will either recycle the equipment or refurbish the system and arrange for its donation to Gifts in Kind International. IBM also collects used computer materials worldwide, at Materials Recovery Centers in the major industrial countries and in remote locations. The largest centers in IBM's system are in Germany, the Netherlands, Italy, Japan, and Endicott, New York, in the United States.

The IBM Engineering Center for Environmentally Conscious Products (ECECP) located in Research Triangle Park, NC, was formed in 1991 as a result of IBM's initiative to support its environmental affairs policy. Engineers at the Center track the development of products using Design for Environment guidelines. DfE ratings are applied throughout product development to assess improvement according to 15 environmental attributes.