Validation of Ostrom’s Framework to Support a Circular Economy for Used Electronics – A Shared Vision

Carol Handwerker (Purdue University)Bill Olson (ASM - formerly Seagate)

Mark Schaffer (iNEMI)

MRS 2019

Value Recovery from Used Electronics

Name CompanyIkenna Nlebedim, Helena Khazdozian, Denis Prodius Ames Laboratory

Bill Olson ASM (formerly Seagate)

Neil Peters-Michaud Cascade Asset Mgmt.

Abbey Burns, Gideon Schroeder Cisco

Alex King (retired) Critical Materials Institute

Mark Glick Echo Environmental

Wayne Rifer GEC Emeritus

Gary Spencer GEODIS

Ikenna Ike, Ines Sousa Google

Ruby Nguyen Idaho National Laboratory

Carleen Matuska Microsoft

Preston Bryant Momentum Technology

Tim McIntyre, Jonathan Harter, Tim Burress, Jason Pries,

Ramesh Bhave

Oak Ridge National

Laboratory

Carol Handwerker, Kali Frost, Nehika Mathur Purdue University

Joanne Larson, Laura Yurik, Monty Forehand, Wade Fott Seagate

Ian Lovell, Kong-Meng Lee, Xavier Hubert, Chris Tejeda Teleplan

Hongyue Jin University of Arizona

Alex Bevan, Peter Afiuny, Catalina Tudor, Miha Zakotnik Urban Mining Company

Mark Schaffer, iNEMI

International Electronics

Manufacturing Initiative (iNEMI) • not-for-profit, highly efficient R&D consortium of

approximately 90 leading electronics manufacturers,

suppliers, associations, government agencies and

universities.

• roadmaps the future technology requirements of the

global electronics industry,

• identifies and prioritizes technology and infrastructure

gaps,

• helps eliminate those gaps through timely, high-impact

deployment projects conducted by iNEMI members

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Key Findings fromiNEMI Metals Recycling Project

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• Needs: “Value Recovery” in the context of a circular economy

• Key role for iNEMI, CMI, and their members to play in

increasing metals recovery, while promoting sustainable

electronics.

– Focus on value recovery through Design for Sustainability.

– Focus on innovative designs, business models,

technologies, supply chains to support value recovery

– Focus on community building and self-managing the

commons

• Of particular importance is the ability of iNEMI to engage

stakeholders to examine new approaches to managing critical

resources and increasing value recovery while protecting

human health and safety and the environment.

Presentation Overview

www.inemi.org/valuerecovery

Value Recovery from Used Electronics

Name CompanyIkenna Nlebedim, Helena Khazdozian, Denis Prodius Ames Laboratory

Bill Olson ASM (formerly Seagate)

Neil Peters-Michaud Cascade Asset Mgmt.

Abbey Burns, Gideon Schroeder Cisco

Alex King (retired) Critical Materials Institute

Mark Glick Echo Environmental

Wayne Rifer GEC Emeritus

Gary Spencer GEODIS

Ikenna Ike, Ines Sousa Google

Ruby Nguyen Idaho National Laboratory

Carleen Matuska Microsoft

Preston Bryant Momentum Technology

Tim McIntyre, Jonathan Harter, Tim Burress, Jason Pries,

Ramesh Bhave

Oak Ridge National

Laboratory

Carol Handwerker, Kali Frost, Nehika Mathur Purdue University

Joanne Larson, Laura Yurik, Monty Forehand, Wade Fott Seagate

Ian Lovell, Kong-Meng Lee, Xavier Hubert, Chris Tejeda Teleplan

Hongyue Jin University of Arizona

Alex Bevan, Peter Afiuny, Catalina Tudor, Miha Zakotnik Urban Mining Company

Mark Schaffer, iNEMI

Ellen MacArthur

Foundation

A Circular Economy

Fast Turn Project –Value Recovery from Hard Disk Drives

Actors:HDD Manufacturers – 3 globally

(Seagate, Western Digital, Toshiba)

HDD Users – data center, enterprise, cloud, computer

Authorized After-market Service Providers – approx. 10

Recyclers and IT Asset Management Companies – >> 100k

Secondary Market Buyers and Sellers – 100k

Smelters and Other Materials Recovery Organizations-???

After First-Market Users - data center, enterprise, cloud,

computer

Researchers – university, national lab, corporate

Phase 2 iNEMI Project –Value Recovery from Hard Disk Drives

Members in the project with a common goal

HDD Manufacturers – Seagate

HDD Users – Cisco, Google, Microsoft

Authorized After-market Service Providers – Teleplan

Recyclers and IT Asset Management Companies –Geodis, Cascade

Asset Management, Echo Environmental

Secondary Market Buyers and Sellers – connected through recyclers

Smelters and Other Materials Recovery Organizations- Momentum

Technologies, Urban Mining Corporation

After First-Market Users - consumers, data center, enterprise, cloud,

computer – connected through HDD Users + AM Service Providers

Technology Developers – research organizations (national labs,

universities, all the above) – CMI – Ames, INL, ORNL, Purdue

Standards organizations – GEC (EPEAT)9

Key Resources

• Published literature: UN Environmental Programme series, Umicore,

Graedel, Meskers, Hageluken, Stevels, Ostrom, Babbitt, Dahmus,

Gutowski, Williams, and others

The Tragedy of the Commons

“The Tragedy of the Commons” – Hardin (Science - 1968)

○ A few people will destroy common pool resources by operating out of

narrow self-interest for short-term gain

○ It is inevitable unless all resources are privatized or controlled by the

government

Hardin’s Assumptions about Human Behavior and Capabilities – quoted from Ostrom

• Norm-free maximizers of immediate personal gain who will

not cooperate to overcome the perverse incentives of such

gain unless coerced by external authorities

• Government officials are implicitly assumed as seeking the

general public interest and being able to analyze long-term

patterns to design optimal policies.

• Designing rules to change the incentives is a relatively

simple analytical task best done by objective analysts not

intimately connected to any specific resource.

• Organization requires central direction; if it is not centrally

directed it is by definition not a recognized organization –

even “invisible” to those who cannot imagine organization

without centrally imposed rules and regulations.

Self-managing the commons

Game A:

Individuals are able:

• To engage in problem solving to increase long-term

payoffs

• To make promises

• To build reputations for trustworthiness

• To reciprocate trustworthiness with trust

• To punish those who are not trustworthy

Game B:

Individuals seek their own short-term, narrow interests

even when presented with situations where everyone’s

joint returns could be substantially increased by

cooperation

Social-Ecological Framework for Self-Managing the Commons(Ostrom)

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Stakeholders• Show leadership & entrepreneurship

• Have the power to make decisions about the system

• Trust each other and maintain trust through their actions

• Understand the SES framework and have mental models

of the system and how the different stakeholders interact

• Acknowledge the importance of the resource to their

livelihoods and acknowledge their interdependence

System • Is manageable - not too large, not too small

• Is productive

• Dynamics are known and predictable

Resource• Is mobile enough - not too volatile, not too static

Key Criteria for Self-Managing Systems

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We posit

One Additional Necessary Factor for Success

Actors have shared goals for the SYSTEM as well as

individual goals for themselves and recognize that others’

individual goals are important -

so that when there are disagreements or things get “hard”, we

continue to work together to meet our shared goals

This is explicitly what we are developing in the

iNEMI Value Recovery project

Winning the Sustainabiility “Game”

Phase 2 iNEMI Project –Value Recovery from Hard Disk Drives

Members in the project with a common goal

HDD Manufacturers – Seagate

HDD Users – Cisco, Google, Microsoft

Authorized After-market Service Providers – Teleplan

Recyclers and IT Asset Management Companies –Geodis, Cascade

Asset Management, Echo Environmental

Secondary Market Buyers and Sellers – connected through recyclers

Smelters and Other Materials Recovery Organizations- Momentum

Technologies, Urban Mining Corporation

After First-Market Users - consumers, data center, enterprise, cloud,

computer – connected through HDD Users + AM Service Providers

Technology Developers – research organizations (national labs,

universities, all the above) – CMI – Ames, INL, ORNL, Purdue

Standards organizations – GEC (EPEAT)20

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This is explicitly how we are organized in the

iNEMI Value Recovery project

Winning the Sustainabiility “Game”