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SVTC HOME > Clean Computer Campaign > CCC PUBLICATIONS > 2002 CLEAN COMPUTER REPORT CARD

Fourth Annual Computer Report Card
January 9, 2003

computer with an FTake It Back! Make It Clean! Make It Green!
Computer TakeBack Campaign

High-Tech Chain Gang. Pictures from release at Consumer Electronics Show in Las Vegas.

Contents

computer hazardous sticker The Report Card is issued annually by the Computer TakeBack Campaign (CTBC) to encourage consumers to leverage their buying power to foster greater corporate responsibility for protecting public health, worker safety and the environment. The Report Card analyzes the information on the web sites of computer companies, compares and measures the environmental qualities of electronic equipment and grades the overall environmental performance of companies.

Down load the PDF Version.
303kB, 35 pages

Introduction

The Problem

Report Card Results

Seven Deadly Sins

Final Thoughts

Conclusions

Take Action

A Consumer's Guide

Footnotes

Appendices


Introduction       The Problem   Report Card Results   Seven Deadly Sins   Final Thoughts      Conclusions   Take Action   A Consumer's Guide

I.INTRODUCTION


"What is in my computer?" "What do I do with my old computer?" "If I try to recycle my computer, will it be sent to China to pollute communities there?"

Each week concerned individuals call organizations participating in the national Computer TakeBack Campaign (CTBC)1 and ask the same questions. The answers reveal the hidden dark side of the high-tech electronic revolution and the so-called "clean industry":


Simply stated, EPR requires companies to take full financial and physical responsibility for their products throughout their life cycle, including end of life recycling, reuse, or disposal.


In an effort to address the scope of these problems, the Silicon Valley Toxics Coalition's Clean Computer Campaign began publishing its computer Report Card in 1999. It is based on the web sites of leading computer product manufacturers on the information they share with consumers about their environmental policies and the environmental features of their products. The Report Card received greater public attention in 2001 when the more than 20 groups participating in the national Computer TakeBack Campaign (CTBC) joined in the release of the 3rd Annual Computer Report Card. The CTBC promotes "clean and green" production and extended producer responsibility (EPR). Simply stated, EPR requires companies to take full financial and physical responsibility for their products throughout their life cycle, including end of life recycling, reuse, or disposal.

The 2002 Report Card looks at the degree to which these firms implement EPR, work to overcome the environmental impacts of the production and disposal of computer equipment, produce environmentally sound products, and protect workers. Armed with this information, consumers will be better informed to choose those products that meet the best environmental standards and are made by the most responsible companies.

From our reading of the Report Card findings, the CTBC concludes that laws and regulations, along with public pressure, have pushed companies to clean up their processes, protect workers, and take responsibility for the final disposal of their products. Where countries have enacted environmental regulations -- such as the Waste from Electrical and Electronic Equipment Directive in Europe and the Appliance Recycling Law in Japan -- the computer industry has responded by developing sustainable products, accepting their responsibility throughout those products' lifecycles, encouraging reuse of materials, and working toward environmentally sound disposal. One study conducted by researcher Naoko Tojo has found that EPR regulations drive green design in the electronics industries in Japan and Sweden2.

Some significant examples of laws include:

  • Europe: The European Union's (EU) Waste Electrical and Electronic Equipment (WEEE) and Reduction of Hazardous Substances (RoHS) Directives, both adopted by the EU's Parliament in October 2002, require the elimination of certain hazardous materials and set standards for producer responsibility for recycling and takeback.

  • Japan: Japan, which passed the Appliance Recycling Law in 2001, now requires takeback of certain electronic products that will soon include computers. The Pollution Release and Transfer Registry (PRTR), also introduce last year, is driving the disclosure of chemical use in production.

  • U.S.: While the U.S. does not have similar national laws or regulations, California and Massachusetts have banned landfilling cathode ray tube monitors and televisions because of the lead content in the glass. Several other states and municipalities are considering similar legislation. During the past year, more than 20 states introduced legislation to address electronic waste (e-waste). The National Conference of Environmental Legislators has a chart of states with e-waste legislation.

U.S. is Behind The findings of this year's Report Card illustrate once again that the United States is behind in developing solutions to counteract the dirty side of the computer industry. This inaction, coupled with the failure to pass crucial legislation, has allowed the computer industry to resist addressing many criticisms, such as the amount of hazardous material used to make their products and the ever-growing pile of waste that results from the dynamic pace of innovation in the Information Technology (IT) industry. As a result, double standards exist between countries, as well as within companies. This report documents that the same companies change their practices to reflect the local political climate by offering certain products and takeback services in different market places, depending on the requirements of local regulations.


..double standards exist between countries and within companies.


The U.S. public is particularly hurt by these double standards. These disparate practices threaten community health, the environment, and the health and safety of the nation's workers.

  • In some cases, safer, less toxic products are not offered to U.S. consumers.

  • Since there are no national takeback and recycling requirements, most companies have not taken the initiative to implement permanent policies in the U.S. as they have in the EU or Japan. Consequently, U.S. landfills are becoming a final resting place for toxic e-waste. In addition to this problem, the lack of regulation also allows businesses to quietly exploit poor communities and workers. For example, while the EU has signed the Basel Convention, which banned the export of e-waste to developing nations, the U.S. has refused to do so. As a result, many "so called" recyclers, based in the U.S., still engage in this dangerous practice.

  • Texas-based Dell Computers uses federal prison labor for their recycling, despite the fact that these workers do not receive the same health and safety protections as workers at other facilities.
Areas of Concern.Several major areas of concern became apparent as we analyzed this year's grades and compared them to previous years. They are:

The 2002 Report Card highlights these key issues, provides details about specific company performance, and suggests actions that consumers, governments, and corporations can take to correct and avoid the deadly implications of e-waste and electronic manufacturing.

While laws and regulations are creating the climate for change, the Report Card and increased public pressure through the national CTBC are also generating a strong reaction throughout the computer industry, given the number of companies that called or wrote about the grading criteria and timing. As the Campaign continues to monitor these companies and report on their progress, we will also increase our outreach to consumers and ask them to make choices based on sound environmental principles and information.


Introduction       The Problem   Report Card Results   Seven Deadly Sins    Final Thoughts   Conclusions   Take Action    A Consumer's Guide

THE PROBLEM: From Production to Disposal


Toxics. When people think of computers, they may not understand the toxic dangers of microchip production. Computers and their components -- semiconductor chips, circuit boards, and disk drives -- are made from more than 1,000 materials. Many of these materials -- such as solvents, gases, acids, brominated flame retardants, plastics, lead, cadmium, and mercury -- are extremely toxic.

Thirty years of irresponsible handling of chemicals used in manufacturing resulted in highly contaminated groundwater and severe community health problems in a number of countries including, the United States, Japan, Mexico and Scotland. International research has revealed that high-tech production workers experience premature death, elevated rates of cancer, neurological disorders, miscarriages and giving birth to children with severe birth defects. See the Human Health Impacts of the High-Tech Industry.

Resources.The rapid growth of the high tech revolution also saps resources. Microchip production involves more energy, water, fossil fuels, toxic chemicals, and elemental gases than any industry in history(3). One semiconductor plant can require enough electricity to power a city of 60,000 and several million gallons of water a day(4).

E-Waste. It is estimated that 60 million new PCs enter the market and 12 million are disposed of each year in the U.S. Add the unknown numbers of old computer products hidden in basements or garages, and the result is a staggering mass of plastic, metal, chemical, and glass "junk". The National Safety Council predicts that in the U.S. between 315 million and 680 million computers will become obsolete within the next few years. The waste will contain more than 4 billion pounds of plastic, 1 billion pounds of lead, 1.9 million pounds of cadmium, 1.2 million pounds of chromium, and nearly 400,000 pounds of mercury. Amazingly, less than 10% of outdated computer products are refurbished or recycled.(5)


E-waste has become one of the world's fastest growing and most toxic waste streams.


E-waste has become one of the world's fastest growing and most toxic waste streams. The industry depends on unimaginative solutions such as landfilling and incineration as disposal methods. This leads to even more pollution and greater threats to human health. Current recycling policies, such as using cheap prison labor, expose unprotected workers to serious health risks and provide serious economic disincentives for new recycling businesses to emerge. Companies also avoid the cost of investing in recycling programs by exporting toxic e-waste to Asia. It is unconscionable that the high tech throw-away culture and ineffective U.S. policy victimizes poor communities that cannot handle the severe pollution and life-threatening health problems resulting from this practice.


Introduction       The Problem   Report Card Results   Seven Deadly Sins   Final Thoughts      Conclusions   Take Action   A Consumer's Guide

REPORT CARD RESULTS


"…environmental concern is becoming an expression of personal values for consumers around the world. Their desire to identify with eco-friendly brands is beginning to shape their purchasing decisions. Moreover, consumers and investors are taking an interest in company ethics and the role they play in changing society for the better. Contemplated this way, the concept of sustainability provides a unique opportunity to create an enhanced relationship between brand and consumer". 6
Quoted from Philips' Environmental Report
The Report Card is issued to provide consumers with the information necessary to leverage their buying power and foster greater corporate responsibility for protecting public health, worker safety and the environment. Grading environmental performance is meant to encourage brand-name firms to place information on their web sites in order for consumers to make informed choices when purchasing new equipment or disposing of old computers.

The grades were calculated by evaluating company web sites in 4 areas: Extended Producer Responsibility (6 questions), Hazardous Materials Use (6 questions), Occupational Health and Safety (3 questions) and Ease of Information Access (2 questions.) Each question is worth 4 points. (For more detailed explanation see Methodology.)

While no company has yet approached a perfect score of 68, some are beginning to recognize the need to address environmental issues and are making public commitments regarding EPR and hazardous materials reductions. Sixteen out of the 28 7 firms we looked at this year have improved over last year, because they provided more information on their web sites in these areas.

While the CTBC members are cautiously encouraged by the improvement in grades, the fact remains that most of these changes are being driven by regulations and consumer pressure.

The Companies
The 28 companies evaluated in this report card produce desktop or laptop computers, monitors, and/or printers. They include:

  • Nine U.S. companies: Apple, Dell, e-Machines, Gateway, Hewlett-Packard (Compaq), IBM Lexmark, Micron PC (MPC), and Viewsonic.
  • Eleven Japanese companies: Brother, Canon Fujitsu, Hitachi, Matsushita-Panasonic, NEC, Oki, Seiko Epson, Sharp, Sony, and Toshiba
  • Two European companies: Philips and NEC International
  • Three Korean companies: Daewoo, Lucky Goldstar, and Samsung
  • Three Taiwanese companies: Acer, AST, and Wyse Technologies
The Categories
The companies were evaluated on the following categories:
  • Extended Producer Responsibility
  • Use of Hazardous Materials
  • Worker Health and Safety
  • Degree of Accessibility of Information
In response to suggestions from several companies, we also sent out a survey, enabling companies to add information to supplement their web sites. Because we encourage companies to be as comprehensive as possible on their web sites, the survey responses 8 were not incorporated into their actual grades. Extra credit was awarded if the responses provided important additional information. That extra credit is discussed briefly below the following charts and in more detail in Appendix D.

The Grades

Grade

Company Name

Country

% Total

Score out of 68

Passing

Fujitsu

Japan

51.5

35

Needs Improvement

Canon

Japan

48.5

33

Needs Improvement

IBM

U.S.

47

32

Needs Improvement

NEC

Japan

45.6

31

Needs Improvement

Toshiba

Japan

45.6

31

Needs Improvement

Matsushita/Panasonic

Japan

44.1

30

Needs Improvement

Seiko Epson

Japan

44.1

30

Needs Improvement

Sony

Japan

44.1

30

Needs Improvement

Apple

U.S.

41.2

28

Poor

Hitachi

Japan

38.2

26

Poor

Hewlett-Packard/Compaq

U.S.

33.8

23

Poor

Oki

Japan

32.4

22

Failing

Brother

Japan

27.9

19

Failing

Dell

U.S.

27.9

19

Failing

Sharp

Japan

26.5

18

Failing

Samsung

Korea

25

17

Failing

Micron PC (MPC)

U.S.

20.6

14

Failing

Lexmark

U.S.

20.6

14

Failing

Philips

Europe

17.6

12

Failing

Viewsonic

U.S.

10.3

7

Failing

Lucky Goldstar

Korea

5.9

4

Failing

e-machines

U.S.

4.4

3

Failing

Acer

Taiwan

2.9

2

Failing

Gateway

U.S.

2.9

2

Failing

AST

Taiwan

1.5

1

Failing

Daewoo

Korea

0

0

Failing

NEC International

Europe

0

0

Failing

Wyse Technologies

Taiwan

0

0

See the Consumer Guide

Extra Credit:


A number of companies are doing more to implement extended producer responsibility and improve the environmental attributes of their products than they discuss on their web sites. These companies deserve extra credit for such actions. The specific reasons for this extra credit, which was determined by the answers they provided on their surveys, can be found in Appendix D.

The companies are:

  • Apple
  • Brother
  • Dell
  • Hewlett Packard/Compaq
  • IBM
  • Lexmark
  • Matsushita/Panasonic
  • NEC (Japan)
  • Sharp
  • Sony
  • Viewsonic

The members of the CTBC applaud these companies' efforts and want consumers to know about them. Two points are worth mentioning, however:

  1. If each of these companies had included the details from the surveys on their web sites, they would have achieved higher report card scores,

  2. Two companies, Canon and Fujitsu, did not receive extra credit because their surveys supported what was already on their web site. This confirms that their information is more comprehensive than that of their competitors, which is why they scored the highest on the report card.

Special kudos go to 5 companies this year:

Apple was the only company, in the Summer of 2002, to publicly support legislation in California that would have been a first step toward building recycling infrastructure for e-waste at the state level.

Hewlett Packard/Compaq modified their previous stance on EPR in the U.S. and embraced producer responsibility, individual responsibility, and cost internalization at a California Environmental Protection Agency hearing in Sacramento on November 25, 2002. This stance is consistent with their position in Europe and is a major breakthrough for the development of U.S. policy.

Matsushita/Panasonic's grade rose from 17 in 2001 to 30 in 2002, largely due to their expanded coverage of hazardous materials usage and occupational health and safety.

Seiko Epson went from 19 in 2001 to 30 in 2002 primarily because of improved coverage of EPR and hazardous materials.

Brother, despite a lower grade this year (19 in 2002 compared to 26 in 2001) specifically asked for feedback so as to improve their performance and thanked us for "this useful exercise."


The CTBC continues to put national and international pressure on the computer industry, serving as a voice both to and for consumers.


Need More Info:
This year, Hewlett Packard/Compaq's ranking falls in between the ranking each company received last year. CTBC believes that Hewlett Packard's drop in rank was due to the merger with Compaq because there was less information on their web site and that their grade and ranking will improve in 2003.

While grades are based on the environmental and health information contained on a company's entire web site, the following 10 companies either do not post an environmental report or its equivalent, or most of their environmental information predated 2001 at grading time (August/September 2002). Because innovations, regulations, and consumer issues move rapidly, the CTBC encourages all of these producers to create reports or update their information at least annually:

Acer   Gateway   AST   Lucky Goldstar   Daewoo   NEC International   Dell   Viewsonic   E machines   Wyse

While the CTBC members are cautiously encouraged by the improvement in grades, the fact remains that most of these changes are being driven by regulations and consumer pressure. Furthermore, the CTBC continues to put national and international pressure on the computer industry, serving as a voice both to and for consumers.

Environment as an Emerging Value
"Preservation of Earth's environment," according to Fujitsu Limited President Naoyuki Akikusa, "is among the most pressing issues we all face as members of the human race." In Fujitsu's 2002 Environmental Report he goes on to explain, "Responding to environmental issues is a prerequisite for management" and involves "shifting our focus from environmental countermeasures to environmental strategies".
9

While Mr. Akikusa is clearly correct (it is likely that his leadership is the key to Fujitsu receiving 2002's highest grade), the first thing to notice about these grades, as well as those of previous years, is that most of the industry is still moving very slowly to meet these obligations.

Instead of receiving grades in the 50's and 60's (out of a possible total of 68), almost all companies remain below the 50% mark. In some cases, this is due to a lack of public communication. For instance, Philips (see quote at beginning of this section) is seen by industry experts as one of the most progressive companies regarding "green" design, yet their web site (and thus their grade) does not reflect this. Some companies, of course, are doing much better than others. The industry's best performers on environmental and safety issues are clearly Japanese companies. The European, Taiwanese, and Korean firms scored below the 25% grade levels, as did most of U.S. companies.

Comparison over the years. An analysis of this year's grades, comparing them to each other by category and to 2001, revealed some important information and identified some key issues:

Extended Producer Responsibility (EPR) involves both sustainable product design (use of less toxic materials, use of recycled and recyclable materials, upgrade potential, and ease of disassembly for repair and recycling) and takeback/recycling programs. The Computer TakeBack Campaign believes companies need to develop effective takeback and recycling programs for their products at the end of their consumer life. Despite evidence that e-waste continues to be exported (See Exporting Harm: the High-Tech Trashing of Asia), no company provides strategies to ensure the eradication of this practice. Nor does Dell tell its customers that Dell relies on prison labor for recycling. As the nation's leader in PC sales, Dell's actions not only undermine development of viable recycling enterprises, but could also serve as an inappropriate model for other companies (See www.toxicdude.com) for more information.

Reduction of Hazardous Materials - Japanese companies are clearly leading the world in reducing key hazardous materials in their computer products. In Europe, discussion of hazardous materials tends to focus on those that are targeted for phase-out under the EU's RoHS Directive, especially lead and brominated flame retardants (BFRs). The question raised by these grades is why are some companies (and countries) are able to move ahead on reducing these toxins, while others are not. In addition, why is PVC, which is so common and yet so dangerous, barely ever mentioned? ( >Examples of Green Design and hazardous materials phase-out.

Occupational Health and Safety - Studies indicate that the semiconductor and computer industries pose health hazards to their workers. Companies do not publicize in detail, if at all, the potential threats to workers or people living near their production facilities. Many ignore the topic all together, while others give sketchy descriptions of their monitoring systems, focusing mainly on injuries. (See the article by Salon.com's Jim Fischer Is worker's health the price for high-tech progress?)

While most successful companies have business plans that include environmental targets, most are reluctant to share specifics with consumers. Their sites or reports contain overly general statements, numbers are given without any context as to what they mean, and actual products are not usually named.

The growing effectiveness of the report card is evidenced by companies that desire to be seen in a "green" light. Some company representatives have privately acknowledged that they have withheld explicit information on their goals for fear of consumer reaction if they fail to reach them. Some are also concerned about opening up the proverbial "can of worms" about environmental or health issues, even when they are making progress on solutions. As the phone calls we receive demonstrate, consumers want those specifics-both positive and negative.

Consumers and stockholders who want to make a difference, however, can take heart that public pressure works. Companies do respond to stockholder resolutions that call for environmentally sound manufacturing and EPR.

Financial advisors are addressing these issues as well. In a recent Financial Times article, Michael Kiernan of Innovest supported the importance of environmental sustainability to corporate financial success. "Investors should focus on sustainability, " he says, "or count the cost." Kiernan argues that the traditional assertion that sustainability and cost effectiveness are incompatible is "quite wrong-headed". In fact, "the 'prudent fiduciary' equation is being turned on its head. Since there is now evidence that superior environmental and social performance improves the risk profile, profitability, and stock performance of publicly traded companies, fiduciaries can be seen to be derelict in their duties if they do not consider sustainability".


Introduction       The Problem   Report Card Results   Seven Deadly Sins   Final Thoughts      Conclusions   Take Action   A Consumer's Guide

SEVEN DEADLY SINS


Our analysis of this year's grades identified 7 primary areas of concern:

Exporting E-waste  Double Standards   Lead  Flame Retardants   PVC  Worker Health  Prison Labor

1. Exporting Harm


Most Americans don't know that 50 to 80% of the collected e-waste meant for recycling is quietly exported to countries where environmentally destructive processing and disposal create environmental and health nightmares.
woman hammering monitor. Credit: Basel Action Network, 2001, 1999.
Photo Credit: Basel Action Network, 2001.

In February 2002, the Basel Action Network (BAN) and Silicon Valley Toxics Coalition (SVTC) the released the ground-breaking report, Exporting Harm: The High-Tech Trashing of Asia It exposed the "escape hatch" that allows e-waste to be exported to China and other developing countries. As the report states,

The open burning, acid baths, and toxic dumping pour pollution into the land, air, and water and exposes men, women, and children of Asia's poorer peoples to poison. The health and economic costs of this trade are vast and, due to export, are not born by the western consumers nor the waste brokers who benefit from the trade. See Exporting Harm.
In November 2002, the San Jose Mercury News sent an investigative team to China and confirmed the findings of Exporting Harm about the "devastating environmental, health, and labor problems that ensue from this exploitive practice"10.

The Basel Convention and the Ban Amendment, signed by all developed nations except the U.S., identify e-waste as hazardous and prohibit the shipment of hazardous waste from rich countries to poor ones. Since the release of Exporting Harm, China has begun to clamp down on the imports of e-waste.

Despite global attention to the problem, this toxic trade continues unabated. As Jim Puckett, coordinator of BAN puts it, this "toxic effluent of the affluent" runs downhill. If one country stops the importation of hazardous e-waste, unethical "recyclers" will find another developing area to dump it.


"..the toxic effluent of the affluent runs down hill".


This ugly problem can no longer be swept under the rug. In addition to causing horrendous pollution overseas, "export stifles the innovation needed to actually solve the problem at its source -- upstream at the point of design and manufacture.11. Thankfully, ethical recyclers and consumers recognize the need to stop the export of e-waste. Public pressure has pushed companies to begin creating their own limited domestic recycling infrastructure or establish partnerships with recyclers who do not send manufacturing waste and end of life products overseas. A number of recyclers have signed CTBC's "Recycler's Pledge of True Stewardship," which includes a promise to follow environmentally sound practices and not to export e-waste.

computer pile. monitor. Credit: Friend of SVTC 2000.
Photo Credit: Silicon Valley Toxics Coalition, 2000.

To a significant degree, e-waste pollution is the result of current design priorities. Computers and their peripherals should include fewer hazardous materials, expanded upgrade capacity, and ease of disassembly when it does come time to recycle. Most companies do not give much more than lip service to upgradability as part of their design process, as upgrading computers could cut into future sales and undermine the current business model of rapid obsolescence.

Banning e-waste export, creating products that are less hazardous to the environment, and extending the useful life of electronic products are key to stopping overseas dumping. Unfortunately, because U.S. policy has been totally ineffective and lagging in addressing these issues, the U.S. continues to fall further behind Europe and Japan in addressing consumer interests.

2. Double Standards Between Countries and among Companies: Take it Back Now!

Landfilling and exporting e-waste are not viable ways of managing obsolete electronics. Nor is incineration which some companies euphemistically call "cogeneration" or "thermal recycling." Burning produces little energy and can release significant levels of dioxins, mercury, cadmium, and other life-threatening substances into the air and water, while the residual toxic ash is buried. The alternative is Extended Producer Responsibility (EPR), which is central to ensuring that products can be upgraded for longer use, disassembled, reused, or recycled in an environmentally sound and safe manner.

Extended Producer Responsibility (EPR) is central to ensuring that products can be upgraded for longer use, disassembled, reused, or recycled in an environmentally sound and safe manner.


Happily, this can be an environmental and economic win-win situation. If companies take back their out-of-date products, they may be able to refurbish viable machines for profit, reuse parts and recycled materials in new products, and reduce costs incurred from enforced environmental clean-ups and the purchase of new materials.

Once again Europe and Japan are leading the way. The Waste from Electronic and Electrical Equipment (WEEE) Directive requires producer takeback of electronic equipment at the company's expense and limits what can be done with those products. These limitations include a ban on sending them to developing countries and landfilling. Japan's takeback law will soon move beyond household appliances to include computer products. Consequently, companies are moving quickly to build recycling partnerships and infrastructure in these countries.

What of American consumers? As in the past, companies remain largely focused on mere compliance and on not their responsibility to all consumers, corporate and individual. There are limited or no regulations in the U.S., so recycling options are limited. Due to growing public dissatisfaction over this double standard, a number of U.S. companies such as Hewlett Packard (HP) and IBM, and Dell, are beginning to expand their product recovery services, but U.S. consumers have to pay fees and/or shipping to a given recycling center, while their European counterparts do not.

Note: Only Apple received a top score of 4 for explaining how their machines were upgradeable and on the question of disassembly and recyclability, offering more detail on these aspects of their products.

Though a few companies have sponsored scattered recycling events or programs in individual states, Japanese companies have tended to do less in the U.S. For instance:

  • Sony says they are in compliance with appliance recycling laws in Japan. But regarding other world regions they go on to say, "Studies are being conducted on a system that is adaptable to different national regulations and regional characteristics." No deadlines or other specifics are given about their future plans for developing a takeback program. This is despite the fact that 32.5% of their sales and operating revenue comes from the U.S., compared to 29.7% from Japan.

  • Toshiba's product recovery policies/methods in Japan are very clear. PCs are recycled by request of the user, who is given an estimate of the cost. No such information is given for the U.S.

  • Sharp's product recycling efforts, other than for batteries and toner cartridges for copiers, are focused on Japan. While their survey response does discuss research on recycling in the U.S., they do not provide real dates, plans, or goals.
  • Only Canon and Seiko Epson scored well on explaining their ultimate takeback goals. Such goals include dates by which their programs will be implemented, the numbers of obsolete computers they are willing to accept from consumers each year (compared to how many they sell), and in which regions of the world they will offer these services. None of the companies based in Korea and Taiwan received any points for takeback except Samsung's 1 point for its product recovery goals.

    Industry continues to resist regulation. In a speech earlier this year, Wayne Balta, IBM's Vice President of Corporate Environmental Affairs and Product Safety stated that while the company supports the goals of the WEEE Directive, the law includes "prescriptive treatment requirements which may add substantial cost for all involved without commensurate environmental benefit" and "extremely confusing financing requirements"12

    Despite Mr. Balta's objections, a few companies are beginning to address the issue of takeback. For example:

  • Hewlett Packard operates recycling facilities in California and Tennessee and is now publicly supporting EPR regulation in California.
  • Apple endorsed California's legislation to charge an Advanced Disposal Fee in 2002, which was vetoed by Governor Gray Davis.
  • Not all efforts embrace the ethic of producer responsibility, however. Responding to public pressure, Dell has recently offered "shipback" (as opposed to takeback) recycling services to consumers. What Dell does not tell customers is that they are using prison labor to do their recycling, putting workers at risk and undermining efforts to build necessary infrastructure (See the Dell case study.)

    In the future, we will expect companies to address the following points in detail:
    • How are products being recycled?
    • Are they being sent to third world counties?
    • Are they being recycled by prison labor?
    • Does "recycling" include incineration?
    • How does the number of recycled or refurbished computer products compare to the number of new ones sold each year?
    • <>Are takeback services global or solely available in countries that require them?
    • What are the companies' takeback goals in terms of numbers (vs. sales), their timeline, and what services are offered for corporate and/or individual consumers?

    3. Get the Lead Out!


    Scientists and health professionals have long understood that lead causes serious health problems, including brain damage as well as blood and neurological disorders disorders. It is widely used in manufactured products, however, because of its strength and low melting temperature. Lead is imbedded into the glass of CRT monitors as a radiation shield, used as solder on circuit boards, and is incorporated into computer parts.

    Consumer electronics constitute 40% of the lead found in landfills13. As 315 million computers become obsolete between 1997 and 2004, nearly 1.2 billion pounds of lead could potentially enter the waste stream.

    Lead is particularly dangerous when ingested by breathing in fumes (while melting, working with, or recycling the material) or through drinking water. When products containing lead are landfilled, the leachate threatens surrounding communities and water sources. CRT monitors and televisions, contain up to 7 pounds of lead in the glass. Monitors fail EPA's leachate toxicity tests and are classified as hazardous waste they are disposed. California and Massachusetts prohibit their disposal in landfills. Leachate toxicity tests are currently being undertaken on circuit boards and other computer components to determine the threat to landfills.

    Consumer electronics constitute 40% of the lead found in landfills.


    Where the use of lead is concerned, once again the U.S. is lagging behind in protecting environmental and community health. No directives on eliminating lead from products have been brought forth by national government agencies. Australia, on the other hand, has already demonstrated that lead fails the leachate test and has set restrictions on e-waste disposal accordingly. In Europe, the Restriction on Hazardous Substances (RoHS) Directive requires the elimination of lead from electronic equipment, with some exceptions, by 2006. Some companies - particularly those based in Japan -- recognize the dangers of lead. From Seiko Epson's 2001 environmental report , "Lead is highly soluble in acid rain, and is subsequently prone to entering and polluting groundwater."

    Necessity is the mother of invention. Many companies realize that the regulations banning lead in 2002 are inevitable, regardless of industry claims that viable alternatives do not exist. Even so, research accelerated to find replacement materials, such as silver, tin, and copper alloys. Some companies have moved forward quickly, setting and publicizing goals and timetables to eliminate lead. For example:

  • Matsushita/Panasonic reported in their survey, but not their web site, that while some components procured by outside suppliers contained lead solder, all of the in-house manufacturing processes for laptops sold in the U.S. under the Toughbook name contain lead-free solder. Their CF48 series, which contains lead, is being phased out.

  • Fujitsu announced in December 2001 the development of Advanced Printing Bump technology using solder paste, which means "products can easily be made lead-free". They claim that "all new products use lead-free solder varieties" and provides a list of products that met this goal in 2001.

  • Seiko Epson "take[s] this shift in attitude on lead usage with the utmost seriousness, and since 1999 [has worked] for [the] complete elimination of lead (in both solder and terminal plating)". At grading time, Seiko's 2001 environmental report stated their goal to eliminate lead from circuit boards by the end of 2001.

  • Canon is "developing technologies aimed at eliminating lead, cadmium, hexavalent chromium, mercury, and other heavy metals from our products by the end of 2004". Their 2002 environmental report gives examples of their progress.
  • It is largely because these four companies provided specific goals and timelines, which are clearly in response to the RoHS Directive and mandatory Pollution Release and Transfer Registry (PRTR) reporting, that their scores are among the highest this year.

    Note: Ten companies-- IBM, Philips, Brother, Seiko Epson, Fujitsu, Hitachi, Matsushita/ Panasonic, Sharp, Toshiba, and Samsung -- improved their grades in this category. Only 1 company's (Hewlett Packard/Compaq) grade went down, while the rest stayed the same.

    Some companies and one of the main electronics trade associations -- the American Electronics Association -- have threatened to file a challenge to the World Trade Organization alleging that the European Union (EU) standards in the Restrictions on Hazardous Substances (RoHS) are an illegal restraint of international trade. The fact that Japanese companies are complying with these phase out goals even before the applicable dates should serve to undermine this threat.

    Eliminating lead is, in truth, a challenging goal. Japanese companies seem to be phasing out lead faster than most U.S. companies. If Fujitsu and Seiko Epson can decrease and ultimately eliminate lead, however, so can U.S. companies. After all, U.S. firms will have to comply with the EU's new standards by 2006 to continue selling their products there and are unlikely to hand over the European marketplace to their international competitors. Once such products are developed, they should also be made available globally to protect all consumers and communities from lead pollution.

    4. Don't Disrupt My Endocrine System: The Problem With Brominated Flame Retardants (BFRs):


    BFRs are used in the plastic housings and circuit boards of electronic equipment to prevent fires. There are four major types--polybrominated biphenyls (PBBs), tetrabromobisphenol-A (TBBPA), polybrominated diphenyl ethers (PBDEs), and hexabromocyclododecane (HBCD) in this family of 209 chemicals. BFRs are suspected endocrine disrupters, chemicals that cause a hormone imbalance by out-competing or mimicking the body's natural hormones.

    Specific effects of exposure to endocrine disruptors include decreased period of lactation, infertility, and intellectual impairment in children. These chemicals make computer recycling particularly hazardous to workers. According to several studies, both TBBPA and several forms of PBDEs have been detected in the air at several electronics recycling plants in Sweden, and have been monitored in the blood of recycling workers. 14


    TBBPA and several forms of PBDEs have been detected in the air at several electronics recycling plants in Sweden, and have been monitored in the blood of recycling workers.


    Grades in this category, however, tended to be low with, once again, the Japanese companies reporting more about their progress. Some companies, such as Siemens (a Fujitsu partner in Europe), Canon, NEC Japan, and Sony are moving ahead on eliminating BFRs. It is surprising not to see more from other companies, especially in Europe, given the new RoHS Directives which prohibit the use of specific BFRs. The trend has been to replace BFRs in large plastic parts, in keeping with the RoHS Directive. For example:

  • Matsushita has replaced plastic in the enclosures for some models with a magnesium alloy, eliminating the need for flame retardants in these parts

  • Canon has BFR-free covers for all of their printers
  • While both of these innovations are positive advances, BFRs are still used inside the machines.

    Despite the improvements, it must also be noted that the information on BFRs can be misleading and the degree of phase out can be unclear. Moreover, while a number of companies have eliminated specific BFRs in anticipation of the EU's directive, most companies are not disclosing the chemical replacements. For example, Canon eliminated the use of PBB and PBDE in 1989, as have HP and Dell. Lexmark eliminated PBB and PBBO in some of their laser printers and circuit boards. They have not disclosed, however, the replacement chemicals, so it is impossible to know whether they are safer.

    When plastics are replaced with non-combustible metal, the product is obviously safer. When another BFR, such as TBBPA, is the alternative or substitute chemical, the potential health effects could still be serious. The question of BFR usage in parts or products continues to be a serious concern, especially in circuit boards. Many consumers, however, are confused or under the mistaken impression that they are buying a product that does not contain these deadly chemicals.

    5. Protection from Polyvinyl Chloride


    Polyvinyl chloride is a soft plastic used in cables and wires, although most computer moldings are now made with ABS plastics. PVC cabling is used for its fire-retardant properties, but there are concerns that once PVC cabling catches on fire, fumes from can be a major contributor to fatalities. As with many other chlorine-containing compounds, dioxins and furans can be formed when burned within a certain temperature range. Dioxin is a persistent bioaccumulative compound that is considered by the EPA to be among the most toxic substances. Most dioxin is generated from the waste incineration of PVC plastic.


    ...electronic plastic scrap amounts to more than 1 billion pounds per year.


    PVC plastic is a difficult plastic to recycle and contaminates other plastics in the recycling process. The colored plastics add to this recycling difficulty.

    An analysis commissioned by the Microelectronics and Computer Technology Corporation (MCC) estimates that electronic plastic scrap amounts to more than 1 billion pounds per year. The same study estimates that PVC makes up the largest volume, 26% of the plastics used in electronics manufacturing. While many computer companies have reduced or phased out the use of PVC, there is still a huge volume of PVC in the computer scrap that continues to grow -- potentially up to 250 million pounds per year15

    Green Products - Not available in the U.S.: It is often presumed that once a company has successfully reduced or eliminated lead, BFRs, PVC, or other hazardous materials in some of their products, those products are available throughout the world. While a number of companies indicated that their environmental product criteria applied worldwide, their web sites contained contradictory information. For example:

  • Sony actually states that they are "continuing introduction of lead-free solder for use in main products, including televisions, VCRs, and mobile phones, especially those manufactured in Japan and Asia 16. This statement reflects the double standard, since it implies that products manufactured outside Asia may not be lead-free. Regarding specific Sony products, the VAIO(R) MXS1 desktop, which has lead-free soldering in major printed wiring boards, could not be found on their U.S. web site, and is, presumably, not available in this country. Interestingly, they do not inform U.S. consumers that their VAIO(R) R505G SuperSlim(TM) Pro notebook computer, which is available here, contains no BFRs and some lead-free solder.

  • IBM states in its supplemental survey that its "environmental specifications for products apply worldwide, across all product lines." The company makes a number of models of desktop PCs without BFRs in the housings or internal mechanical parts, except machine types 6824 and 2289 "for Australia, New Zealand, and China." It is unclear why these models are still sold in these particular markets. It should be noted, however, that IBM's survey contained a long list of BFRs whose use they prohibit.

  • Dell offers many OptiPlex desktop and Dell-branded monitors that meet eco-label standards in "the European market".

  • Products with clearly superior environmental attributes should be manufactured and made available globally.


    Products with clearly superior environmental attributes should be manufactured and made available globally. However, the examples above show that most of the movement toward environmental design results from regulations, not voluntary responsible manufacturing. As Dell stated in its survey, "Dell's policy is to comply with all laws in the geographies that we provide products and services. As the RoHS directive becomes law across Europe, Dell will be in full compliance." U.S.-based ViewSonic's survey sums it up best: "As the U.S. and European environmental laws change, ViewSonic implements those changes into our products so as to be compliant with the industry standards." Since most companies do not develop practices that go beyond compliance, the lack of effective laws and regulations in the U.S. means that U.S. consumers are treated as second-class citizens and that public and health and the environment continue to be at risk.

    6. Occupational Health and Safety


    Information is lacking on company web sites on occupational health issues. Workers who produce semiconductor chips, circuit boards, disk drives, and other electronic components are exposed to highly toxic chemicals. This has always been the lowest-scoring category on the Report Card. A number of companies do not post information on this issue on their web sites. Often there is no quantitative data. When data is provided, there is no discussion of the types of injuries or illnesses. Other companies, while declaring a commitment to maintaining safe workplaces, provide no details about monitoring worker health.

    The CTBC believes differentiation MUST be made between acute injuries (slips and falls), chronic injuries (ergonomic), acute illness (short-term exposure from a chemical accident), and chronic illness (due to long-term chemical exposure).

    Few companies mention cancer, reproductive problems, high rates of miscarriages and birth defects, which have been linked to industrial practices. Some companies whitewash health issues by highlighting employee benefits such as ergonomic measures and smoking cessation programs. This obscures the more serious issues of debilitating illnesses from chemical exposures.

    Yet there is recognition that the health concerns deserve more attention. The Science Advisory Committee (SAC) submitted a report on the health of Silicon Valley workers in the semiconductor industry, to the Semiconductor Industry Association (SIA), the microchip industry's trade association. The SIA has withheld the findings and only released a generalized summary of the report. While the SAC's recommended an epidemiological study, the SIA responded with a proposal to conduct a study on the feasibility of doing the epidemiological study.

    Research has uncovered studies and incidences of worker illnesses that shed light on the problems within electronic industry workplaces.

    Human Cost of High Tech

    • In 2001, the results of an independent epidemiological study conducted by the Scottish Health and Safety Executive documented elevated rates of cancer and premature death among the mostly female factory workers at National Semiconductor in the small town in Greenock, Scotland.

    • Three studies undertaken in the U.S. revealed higher rates of miscarriages among female semiconductor workers than in the general population.(DEC 1988, SIA 1992, IBM 1992)

    • Dr. Orapun Metadilogkul, with the National Office of Occupational and Environmental Medicine in Bangkok, Thailand documented high rates of premature deaths among workers at a Seagate disk drive factory.

    Workers are beginning to speak out. Hundreds of high-tech production workers from New York, Vermont, Minnesota and California have filed lawsuits against IBM and chemical suppliers, claiming that chemical exposure at their workplaces caused serious illnesses.

    IBM's statement that while the company "sympathizes with anyone who develops a serious medical problem and addresses questions like these very seriously, the company believes that these lawsuits are without merit".

    As the garment industry is learning through the growth of anti-sweatshop actions, consumers do care about working conditions and are making purchases accordingly. The incidences of cancer, miscarriages, birth defects, and the finding of BFRs in breast milk, are avoidable tragedies and must be looked at when monitoring the health of a company's workforce. The findings of this monitoring must be made public, as workers have the right to know about the health risks they may face in the workplace. If a health monitoring program isn't in place, proper measures cannot be implemented to prevent these serious problems. Finally, these health-protective practices must be implemented globally, even in countries with limited or non-existent worker protections.

    7. Use of Prison Labor -- E-Waste: the Stain on the Soul of Dell: A Case Study


    Founded in 1984 by Michael Dell, Austin, TX-based Dell Computer Corporation is a $32 billion a year company controlling the largest share of the U.S. personal computer market and is the leading seller of computers to government agencies and educational institutions.

    Though Dell is a profit and sales leader, it consistently ranks as an environmental laggard. While Dell's standing in this Report Card was higher than last year, (the number might have gone up but the grade went from D- to Failing). Dell still is well behind many of its competitors, particularly American companies such as IBM, HP/Compaq and Apple. Despite Dell's stated environmental commitments, company representatives are frequently absent from important stakeholder meetings about computer takeback programs or toxic materials policy.

    The Computer TakeBack Campaign believes that Dell's exceptional performance as a business should be matched by environmental leadership within the personal computer and consumer electronics industries. Dell has taken some steps to reduce its use of toxic and hazardous materials. However, in the U.S., Dell does not take back used computers from all consumers like it does in European countries - and soon will in Japan.

    The Computer TakeBack Campaign believes that Dell's exceptional performance as a business should be matched by environmental leadership within the personal computer and consumer electronics industries.


    Michael Dell's 1999 book Direct from Dell mentions the company's corporate takeback program for its largest customers such as Boeing. The company brags that it has received 2.2 million Dell and other brands' machines through this program, but never reveals how many machines have not been recovered. Between 1997 and 2001 Dell has sold 55 million computers -- so 2.2 million is a fraction of their overall sales. However, many other customers large and small have been left in the dark about the toxins inside computer equipment. They still lack convenient, sensible take back options for many individual and institutional buyers.

    The Campaign is targeting Dell precisely because of the company's sales leadership and their unique direct sales model. No other PC manufacturer or brand owner knows every single one of its customers by name, e-mail address, mailing address, phone number, type of equipment owned, and date of purchase. Dell's assembly process bar codes every component of every piece of equipment they sell. Combined, their sales model and assembly process give the company everything it needs to develop and execute an effective take back system applicable to every customer.

    Moreover, if Dell developed a take back reverse logistics system paired to its sales and delivery model (when you buy a new Dell, the box it comes in can be used to return to the old one - Easy as Dell!), it could virtually lock in customer loyalty and further grow market share.

    Instead of moving strategically to build their business in this way, Dell has ginned up its public relations machine to paint a picture of environmental leadership. Dell has commenced a new program allowing consumers to ship back used equipment at the consumer's expense. Similar programs have failed to address the hundreds of millions of obsolete computers in the U.S. While IBM processes large customer returns from corporate purchases, its consumer-based program processed approximately 1000 computers in a year, about.03% of its annual sales.

    The Campaign has met with Dell's managers on two occasions to discuss an effective e-waste policy. To our amazement, this results-driven company could not articulate for us the means by which the Company will evaluate the success or failure of their mail back and other product recovery programs. For instance, staff could not give us goals or timetables for the program.

    Dell's public relations support for their consumer ship back program has failed to fully inform the public about important aspects of the program, including that much of the equipment mailed back is sent directly to federal prisons for processing by inmate labor under contract to UNICOR, otherwise known as Federal Prison Industries. (SeeChemical Engineering News, "Doing Hardware Time: Prisoners do much of the electronics recycling in the U.S. July 2002. See the web site http://pubs.acs.org/cen)

    Prison laborers are not guaranteed the worker health and safety protections necessary to ensure their protection against the hazards of recycling e-waste. Furthermore, high tech chain gangs ultimately undermine a vital electronics recycling sector that provides decent wages and safe working conditions and that makes necessary technological advances. Dell started up their ship back program after IBM and HP acknowledged that their similar voluntary ship back program wasn't working. Dell says, "Our goal is recycling leadership in the U.S." 17 However, Dell's decision to be the first computer producer to rely on prison labor for their voluntary ship back program sets a new lower industry standard.

    An effective computer take back program will probably include a fee on computers when they are sold, either built into the price or as a separate item. Because Dell's products are not sold in traditional retail outlets, Dell's signature Internet and phone sales strategy must be accounted for in any financing system for computer recycling and disposal. Even other computer companies are concerned about whether and how Dell would be included in any financing system. This is another reason why Dell's agreement to participate in an effective takeback program in the U.S. is critical.

    When questioned about computer recycling at Dell's Annual Meeting in July 2002, Michael Dell stated that consumer demand for the service and all that was needed were more people who wanted to recycle. However, the company had already received hundreds of hand-written letters and many emails from consumers in favor of computer takeback. When pressed about his assertion that consumer research did not show a demand for recycling, Mr. Dell could not come up with any specifics about that research. When activists raised the point that Dell provided many European customers with takeback (as required by law), Dell erroneously state that the recycling rates in Europe were no better those of the United States. Norway has already met the takeback targets set by the European Union.

    Just before this report went to press, the Computer Takeback Campaign learned that the U.S. Environmental Protection Agency would soon be unveiling a consumer education campaign on electronics recycling. We also learned that Dell was going to be a lead corporate partner of this public relations campaign. The EPA's program will do nothing to stem the tide of e-waste being exported or being dumped into the country's landfills or incinerators.

    In 2002, Dell's President, Kevin Rollins, spoke about "The Soul of Dell." He described it as the company's "operating principles -- how we want to behave ethically, treat each other, our customers, our shareholders".18 In a later article, Rollins said that Dell had "to aspire to something higher than what's legal. Is what you're doing right? 19

    The Computer TakeBack Campaign believes that the Dell position on e-waste is a stain on the Soul of Dell -- the company and its founder. Michael Dell and his wife Susan make generous donations to children's health and environmental charities in the U.S., but ignore the health and environmental impacts of e-waste on children and adults in China and other parts of the world. The company and its founder pride themselves on being direct. If a computer comes direct from Dell, the e-waste should go back direct to Dell.

    For information on all of Dell's programs, as well as an analysis of Dell's communications to campaign supporters, check out Michael Dell: Toxic Dude


    Introduction       The Problem   Report Card Results   Seven Deadly Sins   Final Thoughts      Conclusions   Take Action   A Consumer's Guide

    FINAL THOUGHTS


    Misleading Information: As previously mentioned, numbers and percentages are often provided out of context. For example, we are told the percentage of recycled units, but not the total number the percentage represents. We may be told the number of units or the tonnage that was recycled during the previous year, but have no idea if these figures are laudable since we don't know how many similar products were sold or were in need of recycling. A company will also admit to using thousands of chemicals and then list only a few Pollution Release and Transfer Registry (PRTR) substances, leaving the consumer to wonder what the missing materials are. For instance, Canon, which produces one of the best reports, claims to use over 12,000 chemicals in manufacturing, but only lists 19 substances on their PRTR Balance Sheet for 2001. Many companies only list the PRTR substances, without indicating that there are others being used. While it may not be possible to include hundreds or thousands of chemicals in a report, a link to a listing, or information on the families of chemicals used, would be useful.

    Companies also use terms that can be misleading. For instance, the phrases "chemical management" and "reductions in chemical emissions" do not mean "the phase out of those substances." The word "management" refers to monitoring the use, storage, and handling of hazardous materials. "Reducing emissions," while important, simply means that a smaller amount of toxics are being discharged or escaping into the environment. This does not mean that fewer toxins are contained in products or used in processes. Consequently, workers are still at risk handling them and end of life disposal of products can still threaten our communities. Obviously, if toxic chemicals are phased out, management and emissions reductions will become unnecessary.

    Energy, Energy, Energy: Conserving the energy resources of the world is extremely important, and something that every company with an environmental report or section on their web site discusses. For that reason, Energy Star, an EPA Program, often dominates the discussion of eco-labels. Eco-labels are tools for informing consumers about the environmental attributes of their products. Energy Star, however, has become so widespread that lengthy discussion is not necessary. Instead, we would like to see more on those labels such as TCO, Nordic Swan, Blue Angel, or those that are company designed that indicate reductions in hazardous waste, recyclability, or recycling options, as well as energy saving features.Find out more information on eco-labels.

    Often times, eco-label information is provided with the product's description, instead of in the environmental section. Wherever it appears, descriptions of the various traits a label covers are often given without indicating which of these qualities the product includes. For instance, Dell produces monitors that meet label certification standards for labels "such as Germany's Blue Angel and Sweden's TCO '95 and TCO '99 [which] focus on features such as recyclable design, energy efficiency, product take back, ergonomics, emissions, and avoidance of hazardous materials." (TC0 -95measures environmental qualities.) We are not told exactly which labels the products themselves have earned or which of the criteria the products met. A better presentation is Lucky Goldstar's comment that their N2200P monitor is TCO'99 low-emission compliant, as well as Energy Star labeled. Apple provides comprehensive product information on its web site including, in most cases, environmental attributes. While their explanation of TCO labels is general, they do say that they offer TCO computer displays that "comply with strict standards for low power consumption, low emissions, safety, ergonomics, and recycling." They then provide a link for a list of their TCO labeled products. These specifics offer the consumer more opportunity to choose environmentally sound products.

    Internal Recycling: The scope of a company's environmental report should cover internal recycling. For instance, a company may focus on recycling office paper, cardboard, and wooden pallets -- commendable and appropriate environmental practices -- there is little discussion of what is done with machinery and toxins. In addition, while many companies report aspiring to, or actually realizing zero landfill of hazardous materials, they include incineration or discharge into air and water as factors in reaching such goals. Hiding these practices behind white paper and cardboard boxes is not appropriate.

    Burning = Bad!: Finally, incineration is not recycling, something that the WEEE Directive makes very clear. Instead, it is burning, which produces high levels of deadly substances and toxic ash.Studies have shown that people living near incinerators suffer high rates of cancer and other life-threatening illnesses. A number of companies, especially the Asian producers, will include this under the recycling heading. For example, Samsung uses heat from waste incineration to "cut energy consumption." Hitachi actually promotes incineration under the heading "A Project Promoting Environmental Symbiosis" in which it uses shredder dust to produce heat and energy. The company claims that this converts industrial waste into harmless material, despite the fact that the very act of burning produces serious pollution.

    Computer Ingredients: Despite PRTR information and discussion about lead, BFRs, PVCs, and other specific materials, computer products don't come with a complete list of the toxins they contain and the amounts. While companies like Apple include good product information, they fall short of answering this question. If other consumer products require labels of "ingredients" why can't computers, either on an actual label, in owner's manuals, or in the form of Material Safety Data Sheets such as are available for toner and ink products. Such listings should include both known and potentially hazardous materials, beyond PRTR reporting requirements. Posting this information on corporate web sites would also enable interested consumers to do product research before making a purchase.


    Introduction       The Problem   Report Card Results   Seven Deadly Sins   Final Thoughts      Conclusions   Take Action   A Consumer's Guide

    CONCLUSIONS


    While we see some definite movement on e-waste issues this year, the CTBC believes the industry is not taking enough initiative. As people become aware of environmental issues tied to the products, they can use citizen power to influence governmental regulation. Clearly regulations have been key in propelling these changes, but we cannot forget the role of consumers. We can use our purchasing power to encourage companies who do the right thing.
    "Environmental consciousness," says NEC Corporation President Koji Nishigaki, "is a strong selling point for a product… we are coming to a stage where, if a product is not environmentally sound, consumers will not buy it." ( See NEC's Annual Environmental Report, 2002.)

    Even Lucky Goldstar, which reports very little on its environmental activities, understands that environment, safety, and health issues provide "an opportunity for value creation for our clients." (http://www/lg.co.kr/english/about/ overview/philosophy/declaration.jsp).

    Unfortunately, companies are only inching toward the higher range of possible grades and better environmental performance. With 35 being the highest out of a possible 68 points, clearly there is need for more detailed, accessible, and understandable information from producers, as well as clear commitment and planning for continued reduction of hazardous materials, recycling, and worker safety.

    In general companies need to provide:

    1. more environmentally sound products and takeback services;
    2. a commitment not to send e-waste to the Third World or prisons and not to form partnerships with recyclers that do;
    3. the timing on their toxins reduction and takeback plans;
    4. names of products and numbers of units that are recycled, undergo green design improvements, and/or earn eco-labels, presented in the context of how many products within the same category (i.e., computers, monitors, printers) the company makes and sells in the same time period;
    5. specific environmental attributes of products;
    6. specific information on environmental policies, such as recycling practices;
    7. actual phase out goals, not tied to emissions reductions or materials management;
    8. >more specific information on the chemicals used both in products and manufacturing processes;
    9. detailed reasons why lead, BFRs, PVCs, and other hazardous materials have not been phased out or are not meeting phase out goals; and
    10. monitoring information on serious illnesses, injuries, and reproductive problems possibly related to such things as chemical exposure.

    Producers must also put an end to double standards, offer takeback, worker protections, and environmental products to all consumers, regardless of regulations or the lack of them in particular regions. All consumers -- individuals, corporations, governments, or other institutions -- increase the profits of producers. Producers must earn market share through ethical and environmentally sound global practices.

    Finally, as part of extended producer responsibility (EPR), producers need to take the lead on environmental and safety issues, especially in regions that do not have the types of regulations found in Japan and the EU. Infrastructure needs to be built, products need to be made safe, laws need to be passed, and workers need to be protected. Computer companies comprise the most creative and innovative industry in history and must channel their energy toward clean and sustainable production.


    Introduction       The Problem   Report Card Results   Seven Deadly Sins   Final Thoughts      Conclusions   Take Action   A Consumer's Guide

    TAKE ACTION

    The Computer TakeBack Campaign is working to ensure greater Extended Producer Responsibility, reductions in hazardous materials used in electronics, worker safety, and more transparency about corporate policies. We need the help of all computer users to attain these goals.

    It's Time to Get Involved

    Here are just a few suggestions on what you can do:

    1. Use your purchasing power to send a message that only responsible companies deserve to earn your business. Choose products from those companies who score in the top 10 of our Report Card.

    2. Call, write, or e-mail the manufacturer of your computer, printer, monitor, etc. and ask them about the hazardous materials in their products and their takeback policies. Specifically ask if they use prison labor, send e-waste overseas, or are sure that any outside recyclers they contract with don't follow these practices. See Appendix D for web addresses.

    3. Support and become active in the in the CTBC. Sign up at the campaign web site to receive updates. A web site has been developed for campus activists.

    4. Support local organizations participating in the CTBC. See Appendix A for a list of participating organizations.

    5. Help introduce or support legislation or regulations that will build recycling infrastructure, ban landfilling and incineration of e-waste, build computer recycling infrastructure, outlaw export of e-waste, and require reductions in hazardous materials, especially lead, BFRs, and PVCs.

    6. Participate in our efforts to pressure companies through shareholder action. If you, your union, or employer own stock in computer companies, support resolutions filed by socially responsible investment firms. Specifically, become or identify shareholders, especially in Dell Computers, who will attend the Annual Meeting in the summer of 2003 or who will vote their shares in favor of CTBC goals. (People in most states can buy one share of Dell stock.

    7. Lobby your university, mutual fund or pension plan to support shareholder resolutions if they invest in computer producers. Get your company, university or organization to use their purchasing power to buy environmentally preferable equipment and to press for takeback programs.

    8. If you make IT purchases, or recommendations of purchases for a company, agency, or institution, demand takeback provisions in sales contracts.

    9. Encourage organizations to endorse and become active in the campaign.


    Introduction       The Problem   Report Card Results   Seven Deadly Sins   Final Thoughts      Conclusions   Take Action   A Consumer's Guide

    A Consumer's Guide


    Are you buying a computer this year? Do you wonder how you'll get rid of the old one? Wish you knew it wouldn't end up on a mountain of trash? Ever hope things might be different the next time you want to upgrade?

    In 1999, the Silicon Valley Toxics Coalition published its first Computer Report Card to help you figure out which computer companies were doing something about the environment, and which ones weren't. We graded them on the quality, quantity, and user-friendliness of information on their web sites about their environmental practices.

    Since 2001, the Report Card gained more attention throught the emergence of the national Computer TakeBack Campaign, a collaboration with more than 20 groups across the United States. For the fourth year running, we're getting the word out about the efforts of 28 major companies, so you can tell at a glance which ones use the fewest toxic chemicals in production and are moving the fastest to make their gear recyclable.

    The bad news is that there's still a long way to go before electronics are truly recyclable - especially in the U.S. Although computer recycling programs are growing, between 50 and 80 percent of the e-waste collected goes to developing countries, where it gets broken up and dumped, exposing workers and the environment to the toxic components. Few companies in the US have embraced producer responsibility by taking full financial and physical responsibility for their products throughout their life cycle, including end of life recycling, reuse, or disposal.

    The good news is that in the four years since we started handing out grades, some companies have started listening to your concerns about tossing electronics in the landfill. They've have begun to set goals to make their products more eco-friendly by phasing out toxic chemicals and planning for new designs that will use fewer materials and come apart more easily for recycling. They also post information on the web about their environmental practices. The greatest movement in this area is in Japan and Europe where regulations on product takeback and phase out of hazardous substances have pushed companies to clean up their processes, protect workers, and take responsibility for the final disposal of their products.

    If you want to see exactly what we did, read about our methodology. Check out the company web sites too.

    Only one company, Fujitsu, recieved a 'passing' grade, and that's at 51.5%. Eight "need improvement", 3 are "poor", and 16 are "failing."

    Company Grades

    Fujitsu - Rank: 1 - PASSING

    In 2002 Fujitsu led the computer industry in both environmental innovation and public disclosure. The environmental section on its web site is one of the most complete out there - so complete that our "extra credit" survey didn't turn up anything new.

    On the manufacturing side, Fujitsu made strides by setting deadlines and goals for eliminating lead from its products. Those efforts built on its Advanced Printing Bump technology, which replaced lead solder with a solder paste in December 2001.

    We suspect that the leadership of company president Naoyuki Akikusa has a lot to do with sending Fujitsu to the head of the class. Calling environmental preservation one of the "most pressing issues we all face as members of the human race," Akikusa moved environmental issues up the priority list from "countermeasures" to "strategies."

    Canon - Rank: 2 - NEEDS IMPROVEMENT

    Canon got high marks for the thoroughness of its environmental disclosure. It was one of only two companies that did an excellent job of explaining its goals for taking back old computers - by posting timelines and telling where it will offer take-back service worldwide, as well as how many machines it will accept, compared to the number of new ones sold. Like Fujitsu, Canon had so much information on its web site that its answers to our "extra credit" survey didn't tell us anything new.

    Kudos also went to Canon for mapping a future with less toxic products. It set a deadline - the end of 2004 - for eliminating heavy metals from its products, including lead, cadmium, hexavalent chromium and mercury. It's also working to phase out brominated flame retardants, or BFRs, chemicals used in plastic housings and circuit boards to prevent fires. All its printers now have BFR-free covers.

    One thing we'd like to see Canon do is list more of the chemicals it uses in manufacturing. It says there are 12,000 and names 19. We're curious about what else is in there.

    IBM - Rank: 3 - NEEDS IMPROVEMENT

    IBM's grade rose over last year for its efforts to eliminate lead according to a set of goals and deadlines. It also expanded its computer recovery services and got extra credit through our company survey, which showed that it's doing more to be environmentally responsible than its web site indicates.

    IBM faltered in the area of occupational heath: it faces lawsuits from hundreds of high-tech production workers from New York, Vermont, Minnesota and California who claim that chemical exposure at work caused them serious illnesses.

    NEC Japan - Rank Tie for 5th - NEEDS IMPROVEMENT

    NEC scored points for its PowerMate Eco products, which are sold in the U.S. and are free of mercury and PVCs. It has phased out BFRs and now requires its suppliers to eliminate lead and mercury by 2005. It also got extra credit in our company survey for disclosing information not on its web site.

    NEC president Koji Nishigaki seems to have listened hard to buyers' views on the environment. "[W]e are coming to a state where, if a product is not environmentally sound, consumers will not buy it," he said last year.

    Toshiba - Rank Tie for 5th - NEEDS IMPROVEMENT

    Toshiba improved its score on the reduction of lead, where it set goals and deadlines. On the information front, we'd like to see Toshiba be as clear about its take-back policies in the U.S. as it is in Japan, where consumers know they can request that their old PCs be recycled.

    Matsushita/Panasonic - Rank Tie for 7th - NEEDS IMPROVEMENT

    Matsushita/Panasonic's grade rose from 17 in 2001 to 30 in 2002, largely because it expanded the section of its web site devoted to hazardous materials usage and occupational health and safety. It also got points for setting goals and timetables for eliminating lead.

    The company got a lot of extra credit through our company survey, where we learned that the Toughbook laptops sold in the U.S. contain lead-free solder, and that the company has a corporate and consumer take-back program. Also on the manufacturing side, Matsushita/Panasonic has replaced plastic in the enclosures for some models with a magnesium alloy, eliminating the need for flame retardants in these parts.

    Seiko Epson - Rank Tie for 7th - NEEDS IMPROVEMENT

    Seiko Epson raised its grade from 19 in 2001 to 30 in 2002 primarily because provided more information on its web site about hazardous materials and sustainable design and manufacture (known as Extended Producer Responsibility).

    The company shared the spotlight with Canon for its thorough explanation of take-back goals. It also continued its efforts, launched in 1999, to eliminate lead from its products.

    Sony - Rank 8 - NEEDS IMPROVEMENT

    Sony got extra credit for describing its recycling policies in our company survey. We were disappointed to learn that Sony applies a double standard to environmental practice across its worldwide operations. In Japan, it complies with appliance recycling laws, but in the U.S., it has no concrete plans to introduce a take-back service - even though 32.5% of its sales and operating revenues come from the U.S., compared to 29.7% from Japan. We also wondered why Sony doesn't tell U.S. consumers that the VAIO(R) R505G SuperSlim(TM) Pro notebook, which is available here, contains no BFRs and some lead-free solder.

    Apple - Rank: 9 - NEEDS IMPROVEMENT

    Apple was the only company to receive a top score - 4 points - for explaining how its machines are upgradeable and disassemble for recycling. The company also spoke up for the environment in the political arena. It was the only industry member that publicly supported legislation in summer 2002 that would have laid the groundwork for an e-waste recycling infrastructure in California. It also endorsed legislation to charge an e-waste disposal fee, which Governor Gray Davis vetoed in 2002.

    Hitachi - Rank: 10 - POOR

    Hitachi raised its marks on eliminating lead, for which it set goals and deadlines.

    However, we were alarmed to read that Hitachi promotes incineration as "A Project Promoting Environmental Symbiosis." It claims that burning shredder dust renders it harmless, despite the serious pollution it creates.

    Hewlett Packard/Compaq - Rank: 11 - POOR

    Hewlett Packard/Compaq's grade this year falls between those received by Hewlett Packard and Compaq last year. We think this reflects the different approaches to disclosure and environmental policy that the two companies had coming into their merger, and we believe that their collective grade will improve in 2003.

    Hewlett Packard/Compaq took an unprecedented step in 2002 by publicly embracing producer responsibility, individual responsibility, and cost internalization at a California Environmental Protection Agency hearing in Sacramento on November 25, 2002. This stance, which matches the company's position in Europe, is a major breakthrough in domestic policy. The company has begun expanding its take-back services and operates recycling facilities in California and Tennessee. On the manufacturing side, it has eliminated PBB and PBDE in plastic housings. However, it was also the only company whose grade slid in the elimination of lead.

    Oki - Rank: 12 - POOR

    Oki, a Japanese manufacturer, set July 2003 as its deadline for removing lead solder from its products. It also set goals for reducing greenhouse gas emissions.
    The other 16 companies received a "failing" score.

    Acknowledgments: Thanks to Andria Ventura, Olga Meydbray, and Mari Morikawa for the excellent work on the data collection team; Andria Ventura and SVTC Staff Leslie Byster for fact checking and writing the report, and CTBC Members Rachel Zellner, Robin Schneider, Ted Smith, Leslie Byster, David Wood for their editorial help.


    Footnotes


    1. The CTBC was initiated by Silicon Valley Toxics Coalition and the GrassRoots Recycling Network in 2001. A list of organizations participating in the CTBC can be found in Appendix A. The CTBC, developed the Electronics Take It Back Platform, which is provided in Appendix B.