Green Rankings 2012: Technology Equipment

Many Technology Equipment companies are addressing their environmental impacts by improving product offerings and manufacturing processes. Driven by increasingly stringent regulations, such as the Restriction of Hazardous Substances (RoHS), the industry’s pace of improvement is accelerating and positively affecting sourcing practices, material use, electronic waste, and packaging. Leading companies have also identified water consumption as a key impact, with best practices including engaging local governments and communities in water initiatives, participation in the CDP Water Disclosure survey, and setting long-term reduction targets and deadlines. But more can be done to extend environmental programs throughout the value chain. Strong programs should include clearly defined supplier standards, monitoring systems, third-party audits, and annual disclosure on findings and targets.

Key Industry Impacts

• Waste generation and disposal and greenhouse gas emissions together account for more than 84 percent of the total environmental footprint of Technology Equipment companies.

• The industry accounts for 2 percent of all waste generation, and 2 percent of the total greenhouse gas emissions of all the companies in the Green Rankings.

• About 2 percent of the total environmental impact of companies ranked comes from this industry.

Critical Issues: Product Life Cycles

Given the industry’s rapid innovation and consumption cycles, the environmental impact of Technology Equipment companies is best understood within the context of life-cycle assessment (LCA). This involves an examination of environmental impact at each stage of a product’s life, starting with design, sourcing and manufacturing to customer use and end-of-life disposal. Companies such as Dell and Hewlett-Packard are using the Greener Electronics Council’s Electronic Product Environmental Assessment Tool to certify products that adhere to environmental criteria throughout a product’s life cycle. Leading companies are minimizing impact throughout a product’s life by ensuring various features are in place, including disassembly and repair mechanisms, material-recovery programs and take-back or recycling initiatives for consumers. These programs should continually involve suppliers throughout the value chain and be aligned with company-wide, quantitative targets and deadlines.

Industry Ranking: How U.S. Technology Equipment Companies Stack Up