Staples/PSI Computer Take Back

1. Staples/PSI Computer Take Back NAHMMA Conference September 23, 2005 Tacoma WA

2. PSI ElectronicsProjects • National Electronics Product Stewardship Initiative (NEPSI) • Model state electronics legislation • “Guide to Purchasing Environmentally Preferable Computers” • Pilot computer take back with Staples, Inc.

3. Context • NEPSI dialogue (2+ years) • Financing system options • Advanced recycling fee (ARF) • Partial cost internalization (PCI) • Hybrid (ARF  PCI) • Gov’t cost under PCI: collection, transportation to consolidation point • No retailer participation in NEPSI

4. Pilot Goals & Objectives • Share responsibility for recycling products that Staples sells. • Create a sustainable business model for long-term electronics collection and recycling. • Test reverse distribution for collecting electronics. • Measure cost effectiveness, logistical efficiencies, and customer response to the designed collection system. • Determine if and how program could be rolled out nationwide.

5. Why did Staples Initiate Project? • Fit with business model to provide collection service for products they sell: • Toner cartridges • Rechargeable batteries • Cell phones • Computer equipment • Customer service/business opportunity • Distinguish Staples brand/loyalty

6. Pilot Project Partnership • Staples • Covered project design costs. • Covered collection, transportation, and promotion costs.

7. PSI Role in Pilot • Designed pilot project • Tracked implementation • Assisted in data collection, analysis, and reporting • Evaluated pilot • Made recommendations for national program expansion

8. Pilot Project Partnership • U.S. EPA • Innovations grant to PSI – covered implementation costs • Part of eCycling Project • Promotion/publicity • Envirocycle • Recycler • Charged below-market processing cost

9. Apple Brother Dell Epson HP Intel Lexmark Panasonic Sharp Sony Pilot Project Partnership * Signed MOU with Staples * Paid for recycling costs – their product and portion of non-participants

10. Pilot Project Partnership • State environmental agencies • Connecticut • Maine • Massachusetts • New Hampshire • Rhode Island • Local government agencies

11. The Pilot Project Overview

12. Program Design • 27 retail stores in 5 New England states • 14 commercial clients in 3 New England states • May 29 - July 11, 2004 (6 weeks) • Accepted electronics are computers (including all components), printers, scanners, fax machines and desktop copiers • Recycling free to customers • Minimum publicity – ramp up over time

13. RetailCollection 2. 1. 1. Home Customer 2. Retail Store 3. Distribution Center (CT) 4. Envirocycle (PA) 4. 3.

14. Retail Collection • Customers bring used electronics to one of 27 stores in pilot area • Customers place electronics into gaylord box and fill out data form • Electronics treated as returned product • Packaged and backhauled on Staples trucks to DC and then to recycler

15. Commercial Client Collection 1. Corporate Client 2. Fulfillment Center (CT) 3. Recycler (PA) 1. 3. 2.

16. Commercial Client Collection • 14 businesses selected to participate • Large and small • Hi-tech users and those not technology driven • Willing to test service • Electronics recycling service ordered with other purchases (no charge for recycling) • Electronics picked up when delivery was made or special collection – scheduled pickups

17. Project Results

18. Collection Summary • Number of units: 5,257 • Pounds: 115,028 • Recycling cost: $8,520 • Handling/collection (retail) cost: $1,870 • Transportation (retail): $11,355 • Collection/transportation (commercial) cost: $1,116 • Promotion, staff training, admin: $7,030

19. Lessons Learned • Program was logistically feasible • Program was successful • Staples’ customers are willing to pay for computer recycling (NOTE: Many others will not!) • Many computer brands returned from non-participating companies • Retail collections  model • Commercial collections  unique • Expect business equipment at retail collection

20. Recommendations • Staples pilot as part of comprehensive collection/recycling infrastructure. • Treat used computers like a return. • Charge a recycling fee until national financing system developed – size it to account for full recycling cost (no mfr reliance). • Enhance data security to allow for reuse. • Seek standardized regulatory requirements. • Phase collections – cleanout/maintenance. • Phase program promotion.

21. Ramifications of Staples Project • Shows viability to use existing retail infrastructure for collections. • Part of comprehensive system. • Reduces pressure on government to be sole collection point. • Added convenience to consumers. • More recycling potential. • Lower system cost.

22. Ramifications of Staples Project • Office Depot/HP pilot in northwest and nationally. • Good Guys northwest pilot collection. • Staples northwest store relaunch.

23. Next Steps • Staples has interest in expanding program. • Other retailer actions expected. • EPA/PSI conference call – October 20??? • Lessons learned from eCycling pilots. • Opportunities for other retailers.

24. Contact Scott Cassel PSI Executive Director 617-236-4855 scott@productstewardship.us Report available at: www.productstewardship.us