The manufacturing of interconnect, passive and electromechanical (IP&E) components for electronic devices is a resource and energy-intensive process. And, once the device has reached the end of its lifespan, it is often rendered obsolete and discarded, resulting in ever-growing mountains of e-waste. This has created a pressing need for the industry to adopt more sustainable practices. The good news is that many companies are developing and implementing processes that can pave the way toward a sustainable future.

What are some of the positive environmental changes manufacturers and distributors are incorporating?

Progress Toward Sustainability

Much of what we know about electronics industry sustainability efforts comes from the company’s published ESG (environmental stewardship, social responsibility and corporate governance) reports. These are commonly referred to as sustainability reports.

Reporting ESG Efforts

Publishing ESG reports provides quantifiable sustainability insights to a company’s customers and investors. Although there is no prescribed format for these reports, their contents offer insights into a company’s values; after all, you can determine a company’s priorities based on where it spends its human and financial resources. Littelfuse has an excellent example of a recent ESG report.

Forming Sustainability Committees

Also called Corporate Social Responsibility (CSR) teams, sustainability committees set goals, oversee company sustainability efforts and find ways to reduce their carbon footprint, among other initiatives. Good examples in the electronics manufacturing industry include Murata and TE Connectivity. It is important that these committees not just set goals but follow up with concerted efforts to enact tactics toward achieving them.

Pursuing Green Certifications

Receiving official certifications and meeting strict standards allows companies to essentially prove their dedication to sustainable practices. Environmentally minded companies can pursue badges from EcoVadis, an assessment platform that rates businesses' sustainability (RS Group received a platinum medal in 2022). A supplier or distributor could pursue Sustainable Forestry Initiative standards by strategically reducing packaging materials. Manufacturers can seek EPEAT Climate+ ratings, a measure of electronic and technology products that have been thoughtfully produced with climate in mind. These are just a handful of ways industry leaders can show they are at the forefront of sustainable operations.

Recognition by the Dow Jones Sustainability Index

Each year, the Dow Jones Sustainability World Index (or DJSI) comprises the top 10% of the largest 2,500 stocks based on their environmental and sustainability practices. Established in 1999, the DJSI World is a list on which large companies aspire to appear, as many investors seek out socially responsible companies. This certainly provides an incentive for the largest companies in the world to operate sustainably. TE Connectivity is a great example of a company who appears on the DJSI, and has done so for more than ten years in a row.

Although it shouldn’t be the primary factor, achieving these sustainability milestones can elevate a company’s public profile, resulting in new customers and higher sales. Securing positive press from successful ESG efforts demonstrates a company has been genuinely pursuing a positive impact through its sustainability initiatives.

Joining the Global Movement

Manufacturers in the electronics industry are increasingly recognizing the importance of net-zero, or carbon neutral, emission goals. Companies like Schneider Electric are pursuing emission-reducing and offsetting goals that include initiatives like using more renewable energy, using water more responsibly and investing in and researching technologies to develop energy-efficient products. Schneider Electric is part of RE100, a global initiative dedicated to pursuing 100 percent renewable energy. As more companies become compelled to incorporate sustainability goals, even more companies will naturally follow.

A Cycle of Sustainability

There is an optimal ecosystem where no component goes to waste. This ecosystem thrives on extending each component's lifecycle through effective reuse strategies facilitated by entities like Waldom. When components ultimately reach the end of their usable life, manufacturers — either by themselves or in collaboration with Waldom — employ environmentally sound practices to extract and repurpose valuable materials. This approach mitigates waste, conserves resources and reduces the environmental footprint of electronic manufacturing.

1. Manufacturing: The process begins with the manufacturing stage, where electronic components are created in an environmentally friendly manner. This represents the inception of the product lifecycle.
2. Usage and Reuse: As components are used and potentially become excess at manufacturer or distributor sites, they are reintroduced into the market via a distributor like Waldom. We extend the lifecycle of these components by ensuring their quality and redistributing them through its network of 2,500 global distributors.
3. Recycling and Recovery: When electronic products reach the end of their lifecycle, sustainable practices are implemented for recycling and recovery. This can take place at the manufacturer site or Waldom's facilities, where precious materials are extracted from the components for reuse.
4. Material Reintegration: The recovered materials are then reintroduced into the manufacturing process, closing the loop of the circular economy. This step emphasizes the sustainable use of resources and minimizes waste.

Taking Action for a Greener Future

Waldom’s commitment extends beyond our cycle of sustainability model, where we’ve already repurposed five billion components and aim to reach ten billion by 2028. We’re actively pursuing sustainability certifications, carbon neutrality goals and vendor-managed inventory (VMI) programs that prioritize sustainable practices. In addition, for each component purchased, we plant a tree in carefully selected locations where it can make a significant difference. Read all about our commitment to sustainability here.