Benchmarking of sustainability to assess practices and performances of the management of the end of life cycle of electronic products: a study of Brazilian manufacturing companies

In the last forty years, there has been a significant increase in the number of electronic products such as computers and mobile devices, revolutionizing daily life in the areas of communication, entertainment, and personal productivity. It is estimated that since 1980 more than 900 million desktop and laptop computers, and more than 700 million cathode ray tube screens and flat panel monitors have been sold in the US alone (US EPA 2011). The total market for personal computing devices has grown 11% in the world in the last few years (Meyer and Katz 2016).

The growth of this sector results in concerns about sustainability, since there are many environmental impacts associated with electronic products, such as (a) climate change resulting from energy consumption in their manufacturing processes and use and (b) at the end of life some electronic devices may present risk to the human health and the environment due to the release of heavy metals such as cadmium and lead (Teehan and Kandlikar 2013). A recent report by US Environmental Protection Agency (EPA 2018) points out that 3.09 million tons of consumer electronics goods were produced in 2015, whereas the rate of selected consumer electronics for recycling in 2015 was only 39.8%. Resource recovery from EOL products is becoming increasingly important for the electronics industry (Goggin and Browne 2000). Some of the reasons for recovery of electrical and electronic products include legislation (e.g. Directive EC 2012), trade-in value of reusable products and the recycling potential due to a significant fraction of precious metals. In view of the increased sales of these devices, manufacturers, policymakers, and buyers should seek ways to reduce environmental impacts during and after the life of electronic products by encouraging sustainability, such as using safer materials and reusing the products.

The electronic products considered in this work include LED televisions, smartphones, microwave ovens, conventional telephones, computer monitors, CPUs, CD players, and printed circuit boards (PCBs). Most of these products are composed of plastics, glass, ferrous and non-ferrous metals, and the main components of some of these products are depicted below.

A microwave oven is made up of materials such as plastic, glass, and metals. The electronic boards contain heavy metals such as lead and cadmium, making them the components with the most difficult destination in this product, having to be sent abroad (Luther 2009). PCBs are composed of several layers of silicon and glass fibres interposed by copper and other metals. On the surface soldering points based on lead, tin, and silver are found. For electronic contacts, gold is used (Goodman 2002).

Among the materials used in the central processing unit (CPU), many are toxic such as lead, mercury, arsenic, cadmium, and chromium, as well as plastic components containing brominated flame retardants, halogenated substances, and polyvinyl chloride (PVC), which generates dioxins and furans when incinerated and are also considered toxic (Fisher et al. 2005). Besides these materials, rare and precious metals are also used: gold, silver, platinum, palladium, and gallium (Goodman 2002).

A smartphone is composed on average of 500–1000 components of different materials, being semiconductors and/or precious metals. The most important materials used in smartphones are ceramics, ABS, silver, zinc, nickel, iron, silicon, epoxy, copper, gold, and lead (Singhal 2005). Regarding the battery, the material used is lithium ion (Van Noorden 2014), it is clear that these electronic products generate plenty of wastes which are toxic in nature and simultaneously create major challenges for recycling/reuse.

This subsection describes previous works that performed environmental assessment of electronic products.

Chancerel et al. (2009) used substance flow analysis (SFA) on a process level as a means to decide about process and product life cycle improvements, as well as to contribute to knowledge about material cycles. They applied the proposed method in a facility in Germany and inferred that after preprocessing (which includes depollution and pre-shredding), despite the high recovery rates for elements such as iron and copper, only a quarter of gold and palladium ends up in outputs from which precious metals may be recovered. In order to reduce the losses of precious metals, they suggest removing manually the relevant materials (e.g. PCBs) to avoid shredding them.

Katsamaki and Bilalis (2012) proposed a method based on lean thinking to recommend actions to guide redesign proposals for electrical and electronic products seeking to minimize impact to the environment after the end of their useful life. Product design characteristics are examined regarding their relevance to the environment in the EOL stage, and product improvement actions are suggested. They applied the method to a distribution transformer, and some of the suggested redesign actions include use of parts that can be easily separated and reused, use of materials that can be recycled, use high-purity materials.

Shuaib et al. (2014) proposed the Product Sustainability Index, which provides a comprehensive product sustainability assessment (PSA) during its life cycle. They performed sustainability evaluation and comparison of two generations of an electronic product. Harivardhini and Chakrabarti (2016) proposed a model to estimate EOL disassembly effort during early stages of product design. Their method was applied to a CRT monitor disassembly process.

Long et al. (2016) investigated EOL processes, including remanufacturing, reconditioning, repairing, recycling, reusing and disposal of e-waste. They disassembled five mobile phones, and identified the component material, weight, joining method, possibility of re-attachment and damage of disassembly. Based on their findings, they suggested ways to improve design for disassembly, including: (a) use of reusable joining methods, (b) use durable materials that can survive disassembly, and (c) identification of components by means of a QR code. In order to evaluate how the design of batteries can affect the lifespan and potential reuse of PC-tablets and subnotebooks, Peiró et al. (2017) presented a method to analyse the removal of battery packs so as to facilitate their replacement and reuse. Bulach et al. (2018) proposed a recycling route for power electronics modules from electric vehicles and compared their route with car shredders and subsequent post shredder tasks (e.g. sorting). They applied Life Cycle Assessment (LCA), which showed good results for both processes, but the proposed power electronics recycling route enables higher recovery rates for gold, silver and palladium.

Pini et al. (2019) compared the environmental performance, external costs and job creation during the life cycle of new and reused electrical and electronic equipment using LCA. They identified a scenario in which the environmental harm of reconditioned electrical and electronic equipment decreases compared to the new one. Also, their analyses of external costs and social aspects confirm that the preparation for reuse activity allows obtaining a more sustainable product than a new one.

More recently, Bovea et al. (2020) proposed a methodology based on LCA to choose between two end-of-life scenarios (repair & reuse versus replacement) for different electric and electronic equipment categories, considering the type of repair and the equipment’s lifespan. They concluded that repair & reuse is environmentally better than replacement. However, for failures such as those related to the motor or PCBs, if they take place in a later product usage, it is better to replace the equipment.

The works mentioned in this subsection, which used methods such as Design for Environment (DFE), Industrial Ecology and LCA, were important regarding the problem of managing the EOL of electrical and electronic products. However, most of those works apply their studies to a specific type of product. Previous studies that considered different types of electronic, did not use CSFs to determine the practices and performances of different companies, identifying indicators that the company should improve to minimize environmental impacts. Previous works that used CSFs to support decision-making by companies regarding minimization of environmental impact will be reviewed in the next subsection.

The management process and performance evaluation involve a large amount of data, information and various decision alternatives. Therefore, managers must establish priorities and have the data and information necessary for their actions. For this, the concept of critical success factors (CSFs) (Achanga et al. 2006) can be used, which seeks to refine the data and develop an information system that both senior managers and operators can use. Some previous works used CSFs to perform environmental assessment of companies, and those works are referenced below.

Kim and Rhee (2012) examined the impact of CSFs on the performance of Korean companies in the context of green supply chain management (GSCM). They inferred that planning and implementation was the dominant factor regarding company performance, followed by collaboration with partners and integration of infrastructure. They also concluded that increased costs and burdens were obstacles to GCSM in Korea. Chuang and Yang (2014) proposed a model to assess the performance of green manufacturing, and to identify key success factors of its implementation in three companies that manufacture similar products. They concluded that the key success factors for implementing green manufacturing are proportion of non-toxic materials, compliance with eco-ordinances, proportion of biodegradable materials, environmental pollution per product and extent of process pollution.

Luthra et al. (2015) performed a study to assess key success factors behind successful implementation of environment sustainability in Indian automobile industry supply chains. They identified critical success factors and performance measures of GSCM from both the literature and experts from Indian automobile industry. A questionnaire was designed, from which six CSFs (Internal management, Customer management, Regulations, Supplier management, Social and Competitiveness) to implement GSCM for achieving sustainability and four expected performance measures (Economic, Social, Operational and Environmental performances) of GSCM practices. They inferred that the CSF “Competitiveness” is the most important for achieving sustainability in Indian automobile industry. Seth et al. (2016) developed a framework to analyse CSFs and performance measures in a green manufacturing context in the Indian cement industry. Examples of CSFs included Top management, Organisational practices/Culture and Green infrastructure, whereas Quality performance, Green performance and Customer satisfaction are instances of performance measures. They highlighted that top management commitment and human resource management provide significant green benefits. In this line, Jabbour et al. (2017) analysed the relationship between CSFs (Information management, Total involvement of employees, Measurement, Top Management Commitment, Supplier management, Training, Competencies for greener, products & processes) and the adoption of GSCM practices for three focal companies that manufacture automotive batteries in Brazil. They also analysed how human issues can help to increase the effectiveness of CSFs for GSCM strategies. Companies with better attention to the considered CSFs achieved better GSCM and environmental management results. Raut et al. (2017) identified CSFs and assessed their importance with respect to sustainability and applied to companies of the oil and gas sector in India. Some of the CSFs are: Hazardous materials, Cost reduction, Environmental regulations and Training and education. They concluded that “Global Climatic Pressure and Ecological Scarcity of Resources” is the most influential criterion regarding implementation of sustainable practices.

Recently, Jabbour et al. (2018) evaluated whether Industry 4.0 can enhance environmentally sustainable manufacturing and proposed the careful management of CSFs in this context. Some of the proposed CSFs in their work are: Management leadership, organisation, education and training, Data management, Top management support and Communication.

Although the results obtained by the above works showed the usefulness of CSFs toward providing appropriate means for environmental benefits, none of them dealt with companies that manufacture specifically electronic products, and the management of their end of life cycle.

Wittstruck and Teuteberg (2012) carried out a study to identify and analyse success factors toward sustainable supply chain management (SSCM) and performed an empirical study on recycling of electrical and electronics products manufactured by German companies. They inferred that signalling support to sustainable development to partners and stakeholders, information provision and the adoption of appropriate standards are very important preconditions for SSCM success, since they lead to strategy commitment, mutual learning and the establishment of ecological cycles. They did not include in their work the consequences of improved health and safety standards or the increase in employment rights on the performance of companies.

An indicator is an evaluation mechanism formulated in a measurable basis, being expressed by numbers in associated values and scales (Popova and Sharpanskykh 2010). Indicators can be established as a management method across the company.

Sustainability indicators are measurable aspects to monitor changes in characteristics relevant to the prolongation of human and environmental well-being (Fiksel et al. 2012). The process of developing sustainability indicators has been explored by some authors (e.g. Lehtonen et al. 2016; Mascarenhas et al. 2015). For example, Marshall et al. (2015) attempted to conceptualize and operationalize the concept of supply chain management sustainability practices. Based on the survey of 156 supply chain directors and managers in Ireland, their study developed theoretically sound constructs on four underlying sustainable supply chain management practices: monitoring, implementing systems, new product and process development and strategy redefinition. Roca and Searcy (2012) sought to identify the indicators being used in corporate sustainability reports in Canada, and the indicators were identified based on a content analysis of 94 reports from Canadian companies.

Tahir and Darton (2010) described a method in which a set of indicators is designed from a production operation. The indicators characterize the impact of the operation on the value residing in three domains: environment, economy, and social (Savitz and Weber 2006). From an analysis based on the definition of sustainable development, they verify that these impacts are related to two business perspectives: the efficiency of the resources, and the impartiality with which the benefits are distributed among the interested parties.

Tseng et al. (2016) proposed a method to deal with the linguistic preferences in hierarchical structure of firms’ green supply chain (GSC) capability. Data were collected from supply chain networks of electronic manufacturing industry in Taiwan. The authors inferred that the most important capability criteria (which may be considered as indicators) are: environmental costs, strategic alliances, environmental audits of suppliers, environmental standards for suppliers, standardized operational procedures, and environmental department and teams. Also, energy-conservation efforts oriented toward electronic manufacturing firms is the best competitive factor in terms of GSC capabilities.

Schöggl et al. (2016) proposed supply chain sustainability indicators for the European automotive and electronics companies in order to facilitate sustainability assessment. Some of the indicators include: Hazardous substances, Waste management, Occupational Health and Safety, Employee training. The indicators were derived from the literature as well as from interviews involving sustainability and industry experts. They point out that information obtained from the indicators can be used in supplier evaluation, monitoring and selection, procurement, and sustainable product development. However, their work did not relate the proposed indicators to the companies’ performance regarding the environment.

Benchmarking began in the late 1970s as a philosophy that seeks the best practices that guide a company to maximize its performance. The initial milestone was the study by Xerox that sought to compare its operations with those of its competitors (Elmuti and Kathawala 1997).

Organizations began to focus on learning what and how leading companies do to reach the top position. The analysis of the processes, regardless of what they are, offers the opportunity to evaluate the quality of the process and learn lessons that can be adapted to the specific reality of another business or activity (Seibel 2004). The Benchmarking of Sustainability method, proposed in this work, is inspired by the Lean Environmental Benchmarking (LEB) method proposed by Tomelero et al. (2017), which was applied in different companies. The LEB method presents a structure that can be applied to the study of end-of-life management of products, and one addition to the LEB method for such study was the use of CSFs to originate the indicators. The proposed method will be described in the upcoming sections of the paper.

CSFs were obtained by a comprehensive review of literature regarding the CSFs involved in the end of the life cycle of electronic products.

To begin the search for publications, the terms “managing end-of-life cycle electronic products” were used. 129 papers were obtained, out of which 16 were selected as directly relevant. They deal with the management of the final phase of the life cycle of various electronic products such as cameras, air conditioners, washing machines, computers, telephones, printers and electric heaters, among others. These papers deal with processes of remanufacturing, reconditioning, recycling, reuse and correct waste disposal.

The critical success factors were obtained from the following publications: Tan et al. (2014), Wang and Chen (2012), Babbitt et al. (2011), Kuo (2010), Bandyopadhyay (2010), Iakovou et al. (2009), Xanthopoulos and Iakovou (2009), Johansson and Huge Brodin (2008), Gehin et al. (2008), Duflou et al. (2008), White et al. (2003), Qian and Zhang (2003), Mangun and Thurston (2002), Gable and Shireman (2001), Yu et al. (2000), Goggin and Browne (1998).

30 factors were identified from publications, and citations ranged from two to five times. Observing the factors found, they can be classified into four groups: (a) environmental impact: this group encompasses the factors that deal with items that can generate or prevent environmental impacts; (b) regulation: includes factors related to regulation and incentives by the government; (c) identification: those that suggest that for the best destination of the product in the post-use phase it is important to know the information about the product; and (d) recovery: information that classifies the product as to its recoverability and what the market expects. Table 1 shows the CSFs found in the literature, already grouped.

It is noticed in Table 1 that the number of CSFs obtained was high and, for the application of the method in the companies, it was sought to identify the CSFs that were considered the most relevant by the companies. A description of this procedure is given in Costa (2016), which is based on the application of an initial questionnaire (known as CSF prioritization questionnaire) that was applied to 60 industry professionals and researchers in the area of sustainability in Brazil. There were five questions in this first questionnaire, which were the following:

After applying the other steps in the method proposed by Costa (2016), five CSFs were considered more relevant by the industry professionals and researchers in the area of sustainability who responded the CSF prioritization questionnaire, which are: (a) identification of materials; (b) environmental impact due to improper disposal; (c) quantity of recoverable material per product; (d) government regulation; (e) hazardous waste. Of these five most relevant CSFs, two are part of the Environmental Impact group, and each of the other three groups (Regulation, Identification, and Recovery) has one of these factors. These five CSFs are used for the development of sustainability indicators, which will be presented in the next subsection.

This subsection describes the procedure for the development of the indicators and the structuring of the second questionnaire (known as benchmarking questionnaire), which is used to perform benchmarking.

The choice of the professionals to answer the benchmarking questionnaire was made according to Seibel (2004): managers, supervisors and engineers who work directly with the products considered were invited. Soon after the companies agreed to participate in the survey, meetings were held to present the proposed research to all those involved, as well as a discussion on sustainability. Then the questionnaire was applied with the 22 indicators. The companies were given adequate time to complete the questionnaire (4-5 months) with follow up by researchers in between to check and clarify any doubts they had.

With the data from the nine companies, the benchmarking questionnaire was charted using the Lean Environmental Benchmarking (LEB) method (Tomelero et al. 2017). The companies were referred as E1, E2, E3, E4, E5, E6, E7, E8, and E9.

With regard to the indicators with low scores, the following are the responses from companies when asked about what they intend to develop to improve these indicators:

The obtained results are sources of quantitative information for companies regarding practice and performance during the production process, having a direct impact on the final phase of the product life cycle. The benchmarking of sustainability method carried out with the nine companies provides a better knowledge about the company’s position in the sustainable context and helps provide a better visualization of the aspects to be improved, enabling the creation of action plans for reducing or eliminating environmental impacts over the product life cycle.