Transforming E-Waste into Opportunity: The Role of Consulting Firms in Circular Economy Models

India, a rapidly growing hub for electronics consumption, generated around 3.2 million tonnes of e-waste in 2019, ranking third globally, according to the Global E-Waste Monitor 2020. Despite this staggering figure, only a fraction of this waste—just 10% in 2018-19 and an even smaller 3.5% in 2017-18—was collected for recycling, as reported by the Central Pollution Control Board (CPCB). This leaves a significant gap in the collection and recycling of e-waste, underscoring the need for a more resource-efficient and sustainable approach to managing this growing issue.

I cannot imagine a world where, in ten years, purely linear models are the winning models in the economy. The linear economy is very simple: you extract resources, convert them into goods, use them, and throw them in a waste pile. In contrast, the circular economy is about eliminating waste altogether. If you extract a resource, it stays in the economy.

India needs to start moving towards a circular model because 45% of greenhouse emissions come from this part of the process. By adopting a circular model, we can drastically reduce the greenhouse gases involved in production. Over the last five years, nearly every global supply chain has broken down due to resource scarcity. In a circular economy, resources remain in the economy, helping to reduce that scarcity.

Circularity is not only about protecting the planet; it represents a new business model. Traditionally, our natural business behavior has been to sell something and forget about it. Now, we want to sell something and ensure it comes back, feeding it back into our production process for resale. Customers, regulators, and investors are increasingly looking for circular models; this is how businesses will thrive in the future. If you can present a product that can be recycled and reintroduced into the cycle after use, that’s innovative, differentiating, and aligned with sustainability goals.

Consulting firms can significantly assist businesses in shifting towards circular economy models, especially in the realm of e-waste management. Consultants have the expertise to help companies explore new business prospects by incorporating circular approaches such as shared facilities, leasing, and subscription services. They can provide guidance on implementing sustainable design practices that enhance product recyclability and recovery, as well as sourcing materials from secondary markets. By advocating for these strategies, consulting firms enable businesses to lower CO2 emissions, recover precious resources, and ultimately establish more sustainable and profitable systems.

By adopting material recovery and circular methods, organizations can notably decrease their ecological impact and boost resource efficiency. For example, obtaining essential materials from the secondary market not only lessens dependence on virgin resources but also reduces the expenses related to raw material extraction. This strategy encourages advancements in recycling technologies, allowing companies to retrieve valuable metals and rare earth elements from e-waste, which would typically be lost in conventional disposal methods. In Apple’s case, their incorporation of 20% recycled or renewable content in the iPhone 15 Pro illustrates how leveraging secondary materials can enhance sustainability and brand uniqueness. As businesses like Apple continue to cut emissions by reclaiming valuable resources, they set an example for others to transition towards more sustainable and circular business practices.

This transition highlights the enduring advantages of material recovery for both environmental preservation and corporate profitability, demonstrating how sustainable practices can be effectively integrated into product lifecycle management.

Transforming from a linear model to a circular one is not a minor change; there are several obstacles to overcome. One of the main challenges is tracing a product. For large installations, it’s easier to trace, but for smaller components, like a contact or a small drive, tracking becomes complex as they move through different chains.

To facilitate this transition, we need to redesign products, value chains, and business models for a circular economy. This process cannot be confined to our own organizations; we must collaborate across the horizontal value chain to address end-to-end problems. This means working together with customers, distributors, panel builders, system integrators, and end users, as well as our suppliers and their suppliers.

Today, we have the technology available to enable circular models. Technologies like blockchain could be extremely helpful. If we can track where products are coming from and where they are going, we can start creating a circular flow instead of a linear one.

The knowledge gap we need to address regarding circularity is less about technical aspects and more about cultural transformation. We must begin thinking circularly, making clear commitments to circularity, and embracing the sharing economy.

Views of the author are personal and do not necessarily represent the website’s views.

Yuvraj Bhardwaj is a Delhi-based researcher, innovator and business owner with 36 research projects and 15 patent applications to his credit. He is also recipient of many awards and accolades, including the Karamveer Chakra Award in 2016. Mr Bhardwaj was a proud nominee for the Padma Shri, India’s highest civilian honour, in 2018.