How Entrepreneurs Can Cash in on the E-Waste Crisis

Technology’s boom has led to a complex, interconnected global supply chain for electronic products. Each device involves a network of raw material suppliers, manufacturers and logistics companies working in tandem across borders. However, this globalized production model has also exacerbated a pressing environmental issue — the management and disposal of e-waste.

Improper e-waste management can result in hazardous chemicals leaching into soil and water, harming ecosystems and endangering human health. According to the Global E-waste Monitor 2024, the annual e-waste generation reached a record 62 million metric tons in 2022 and is projected to climb to 82 million metric tons by 2030. Without proper disposal and recycling practices, the repercussions will be far-reaching.

For entrepreneurs, this challenge also presents an opportunity. By innovating and collaborating on e-waste management solutions, businesses can tap into new markets and growth opportunities, positioning themselves as leaders in sustainability and environmental stewardship.

Related: How to Reduce E-waste and Promote Repurpose in your Business

Drawing on international experience

Countries and regions worldwide have implemented effective strategies for managing e-waste, offering valuable insights for global collaboration. Here are some key examples:

The EU’s Waste Electrical and Electronic Equipment (WEEE) Directive has been instrumental in promoting the recycling and reuse of e-waste across the EU. By focusing on collecting and properly treating WEEE and preventing illegal waste exports, the directive has significantly reduced the environmental impact of e-waste. As of 2021, it has contributed to the collection of 4.9 million tons of e-waste, which is 11 kilograms of e-waste collected per person, fostering a circular economy in the electronics industry.

Japan’s Home Appliance Recycling Act reduces the environmental impact of household appliance waste by mandating the recycling of specific appliances. In response, leading Japanese businesses such as Hitachi, Sharp and Sony joined forces to build and operate efficient recycling systems nationwide. As a result, Hitachi reported impressive recycling rates in 2022, achieving 80% for refrigerators/freezers and 94% for washing machines/dryers. This not only solidifies their reputation but also pushes for recycling technology innovation.

These successful examples illustrate that effective e-waste management hinges on robust policy frameworks, public engagement and technological innovation. Businesses can draw from these models to develop tailored e-waste management strategies that align with their specific operational contexts and local conditions.

Related: What Is E-Waste and How Do You Dispose of It?

Cross-border cooperation

E-waste management is a global challenge that no single country or region can effectively address alone. The solution lies in cross-border cooperation, where governments, international organizations and businesses collaborate to tackle this pressing issue. Through international agreements and strategic alliances among firms, all stakeholders can work together to mitigate the environmental impact of e-waste.

The Basel Convention is a collaboration initiative between countries. It is a global intergovernmental agreement signed by 191 countries that regulates the transboundary movement of hazardous wastes, including e-waste. It establishes a legal framework for international cooperation, controls hazardous waste exports to developing countries, reduces illegal dumping and promotes environmentally sound waste management practices.

Businesses like Apple have significantly reduced the environmental footprint of their electronic products by optimizing cross-border supply chain management. Through its commitment to using only recycled and renewable materials in its products and packaging, Apple is enforcing responsible sourcing of materials by following UN and OECD guidelines and fostering collaboration within the mining industry. This demonstrates how global supply chains can be optimized for environmental benefits.

Similarly, ATRenew, China’s leading platform for second-hand electronics recycling and an Apple trade-in partner in the Chinese mainland, is also expanding its international reach through its AHS Device. ATRenew empowers the electronics recycling value chain by exporting its technological innovations in automated recycling and testing processes, replicating platform capabilities and empowering overseas business partners to decrease e-waste in their respective regions.

These cooperative efforts provide a broad platform for entrepreneurs to contribute to global environmental sustainability while discovering new business opportunities through cross-border collaboration.

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Entrepreneurs’ guide to global action

In today’s interconnected world, entrepreneurs must adopt a global perspective. By engaging in international organizations and initiatives, they can gain insights into global trends, forge new partnerships and uncover opportunities beyond their local markets.

Engagement in Global Platforms: Entrepreneurs can enhance their international presence by becoming members of organizations like the United Nations Global Compact or the World Economic Forum. These platforms offer valuable opportunities to align with global agendas, participate in high-level discussions and network with leaders from diverse industries.

ESG Principles: Incorporating Environmental, Social and Corporate Governance (ESG) principles into the core strategy of an enterprise not only bolsters its social image but also enhances its competitiveness in the global market. Strategic alignments with ESG can open doors to new markets and drive long-term success.

Development of Industry Standards: Businesses can influence industry standards and secure a competitive advantage in the global market by actively participating in the development of international standards such as the International Organization for Standardization (ISO).

Technological Innovation: Entrepreneurs should also focus on technological innovation to optimize production and logistics processes, thereby reducing e-waste generation. Innovations such as modular product design, which allows for easier repair and recycling, can significantly decrease environmental impact.

Digital Supply Chain: Constructing a digital global supply chain enhances transparency, efficiency, and resource management. By adopting digital tools and technologies, businesses can track and optimize their supply chains, ensuring efficient resource use and effective waste management.