circular economy in ict - etsi · sustainability framework region revenue returns americas 57% 59%...

© 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

Klaus Verschuere

Cisco Systems – [email protected]

Circular Economy in ICT


• What is Circular Economy ?

• Laws, Regulations & Standards

• A B2B example - Cisco

Agenda


What is Circular Economy ?


• Increase in demand for resources• Unequally distributed around globe• Need 2 planets by 2030• Price of resources

• Cisco founding member of Ellen McArthur Foundation• Linear to Circular Economy

• Coordinated levels of political engagement

Circular Economy

© 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential© 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

McKinsey / Ellen MacArthur Foundation report

source: Towards the Circular Economy, Vol. 1, p. 24 (Ellen MacArthur Foundation)

• Technical nutrient cyclesCollectMaintainReuse / redistributeRepairRefurbish / remanufactureRecycle (open / closed loop)

• Renewable energy

Circular economy Sustainability framework

Increase

Reduce

Reduce


Laws, Regulations & Standards


• December 2015 action plan - 4 legislative proposals• Waste management• Waste reduction

• Limit incineration of recyclable and bio-degradable waste by 2020• Ban landfill and increase recycle targets• EU national targets to increase resources efficiency by 30% by 2030

• Product design: more durable & recyclable• Review eco design legislation to include resource efficiency in addition to energy efficiency • The Ecodesign working plan will identify product groups to be examined• Promote development of markets for secondary raw materials • Green public procurement

• Innovative forms of consumption: sharing products and services

• http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52015DC0614

Circular Economy Package


Ecodesign standarisation <-> regulations

Computer

Recyclability

Server

Reuse Server

Repair Server

Durability Server

DurabilityReuse

ReparabilityRecyclability

ReuseX

Recycle Display

M 543

Server Regulation

Display Regulation

Regulations

Product Specific Standards

10 Horizontal Standards


Standards• prEN 45550 - Definitions related to material efficiency

• prEN 45551 - Guide on how to use generic material efficiency standards when writing energy related product specific standardization deliverables

• prEN 45552 - General method for the assessment of the durability of energy-related products

• prEN 45553 - General method for the assessment of the ability to re-manufacture energy related products

• prEN 45554 - General methods for the assessment of the ability to repair, reuse and upgrade energy related products

• prEN 45555 - General methods for assessing the recyclability and recoverability of energy related products

• prEN 45556 - General method for assessing the proportion of re-used components in an energy related product

• prEN 45557 - General method for assessing the proportion of recycled content in an energy related product

• prEN 45558 - General method to declare the use of critical raw materials in energy related products

• prEN 45559 - Methods for providing information relating to material efficiency aspects of energy related products

• ETSI TR 103 476 Circular Economy (CE) in Information and Communication Technology (ICT); Definition ofapproaches, concepts and metrics


prEN 45554 - the ability to repair, reuse, upgrade• At product level reparability is determined by:1. The fraction of parts of the product that can be repaired,2. Reparability at part level3. Products interface for fault diagnostics, programming and resetting

a. The time needed to identifying the repair needed upon failure of the productb. The time needed to test, reset and restart after repair of the product

• At part level reparability is determined by: 1. The average occurrence of failure of the part2. The time needed to do disassembly/ies, depending on

a. Number of disassembly steps and manipulationsb. Time to undo any fastenings

3. Time to do repair activities4. The time needed to do reassembly/ies, depending on

a. Number of disassembly steps and manipulationsb. Time to close any fastening

5. The average occurrence of failure of any part during disassembly and reassembly.

• Services accompanying the product are prerequisites for reparability:1. Availability of adequate repair instructions

a. Troubleshooting instructionsb. Disassembly and repair instructionsc. Information on spare partsd. Information on testing, resetting and restarting

2. Availability of spare parts needed3. Availability of software and firmware updates


prEN 45553 - the ability to re-manufacture


Proposals in draft Server / Display regulation• Manufacturers shall ensure that joining or sealing techniques do not prevent the removal of the

components

• data deletion of storage equipment shall be made possible

• total weight per product of the following critical raw materials:Cobalt, Neodymium, Palladium expressed in grams rounded to the nearest integer;

• Marking of plastic parts heavier than 50g

• Electronic displays shall be labelled with the "Mercury inside" / "Cadmium inside" logo.

• information provided in the manuals and on websites of manufacturers• information relevant to disassembly, recycling and disposal at end-of-life;• instructions on the sequence of operations needed to remove the main components including

type and number of fastening techniques to be unlocked and tool(s) required;• a diagram of the product showing the location of the main components and plastic parts

containing flame retardants

?


A B2B example @ Cisco

With help from Darrel Stickler ([email protected]) CSR


Sustainability framework

Region Revenue ReturnsAmericas 57% 59%EMEA 27 31APJC 16 10

Collect

• From customersPre-sales: largest flow, best-qualityPost-sales

• From partners / suppliersContract manufacturers, OEM, ODMRepair partners and distribution depots

• From CiscoEngineeringIT – data centersBrand protection - counterfeitEmployees (Recycle IT Day)

Where do returns come from?


Advanced Replacement Model

Cisco Manufacturing

Customer with Service Contract 2h – 4h – 24h

Repair Site

RF DepotRecycler

Collection, analysis, testing, cleansing for privacy

Info feedback

Sale of a product


Sustainability framework135 countries1400+ depots$10B+ spare parts inventory1.0M+ parts delivered annually

Cisco depotsGlobal repair sitesPartner / regional / local repair sites


How areproduct returns used?

Sustainability framework

26%

21%37%

16% Remarketing

Services

Other

Recycling

Reuse / redistribute

© 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential© 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

Cisco Certifiedü Remanufacturedü Cosmetically like newü Accessories included like newü Engineering upgradesü Full warranty like newü Support/service (SMARTnet) ü Standard sales/distributionü Part xxxxxxxxxx-RF (ReFresh)

Sustainability frameworkRemanufacture


Product design

• 7800 phones (7811, 7821, 7841, 7861)

• Yearly volume: millions• Already delivered: millions

• Resin sources• Virgin • Sorted post-consumer recycled plastic• Returned Cisco phones

Take less — recycled material


Go-to-market models

Customer doesn’t own the equipment

Subscription models: Software and hardware

“Lease” = Customer receives fixed hardware for a fixed duration

“XaaS” = Customer receives functional performance for a fixed duration

Collection 100%Extend lifetime

ReuseUpgrade

Optimise utilisationRecover more @ EoL

circular economy in ict - etsi · sustainability framework region revenue returns americas 57% 59%...

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