Value Chain Electrical recycling

• Registration
• Collection
• Transport/
  Import
• Sorting
• Recovery/
  Extraction
• Sales at home
  and abroad
• Trading (secondary
  commodities
  market)
• Manufacturing

• • Environmental
    indicators
  • Emissions, effluent and waste

    The greatest risk from emissions, effluent and waste arises from electrical recycling in countries without suitable recycling infrastructure. There, improperly processed electrical components release toxic substances, and chemicals from separation or recovery processes seep into the groundwater. For example, the level of pollutants in the soil at Agbogbloshie, a rubbish tip in the heart of Ghana’s capital, Accra, exceeds the limit permitted in Europe by a factor of 50.

  • Resource consumption
  • Biodiversity

    Biodiversity encompasses the conservation of biological diversity – from animal and plant species to microorganisms and complex habitats. In the field of electrical recycling, a risk arises particularly when workers in the informal sector sort old electrical appliances by hand and extract raw materials without access to suitable recycling infrastructure. The resulting environmental damage threatens biodiversity in many ways – an indispensable foundation for human life.

  • Transport emissions
  • Animal welfare
  • Human rights
  • Discrimination
  • The interests of the local community

    The interests of the local population are particularly at risk when waste electrical and electronic equipment bypasses the formal value chain and ends up in informal recycling systems in the recipient countries. This area of risk highlights local issues such as groundwater supplies and the education and health systems.

  • Child labour

    Child labour affects many sectors and always poses a significant reputational risk. In the electronics recycling sector, companies’ responsibility is admittedly less direct than in the textile, cocoa or toy sectors, where greater attention is paid to working conditions at suppliers. However, more and more European consumers are recognising the link between their electronic waste and the children working on mountains of rubbish.

  • Forced and compulsory labour

    Reports of forced and compulsory labour in this sector have not yet been confirmed. One thing is clear, however: working conditions in sorting, recycling and extraction processes are often characterised by dependency and arbitrariness. Children and young people are particularly affected – the extent of this depends on the structure of the informal sector. 

  • Freedom of association
  • Work practices/
    -quality
  • Employment
    status
  • Health and Safety at Work

    In countries such as Pakistan, Ghana, Vietnam and Nigeria, people of all ages work in hazardous conditions. They search for recyclable raw materials and, in doing so, expose themselves to significant health risks without adequate health and safety protection. The initial stage of sorting and separation carries a particularly high risk of serious consequences: Many develop cancer, and organs such as the liver and kidneys often sustain irreparable damage. In addition to the long-term damage caused by inhaling toxic substances and coming into contact with corrosive materials, accidents occur daily that result in acute injuries.

  • Discrimination / Diversity
  • Governance
  • Corruption, bribery, accepting benefits

    According to Ethical Risk Assessment, corruption, bribery and the acceptance of undue advantages are among the greatest risks. The reason lies in the sector’s structural vulnerability, which arises from misguided incentives. The focus is therefore less on individual instances of bribery or the acceptance of benefits, and more on analysing the corrupt environment and its mechanisms. Legal grey areas in electrical recycling are often exploited to the full, driven by economic incentives at the expense of legality.

  • Anti-competitive behaviour

    Violations of competition law occur particularly in the areas of collection and transport. The sheer volume of regulations and the complex legal landscape have given rise to a large service sector which, in most cases, takes on many processes on a long-term basis. A lack of transparency and convoluted business relationships provide ideal breeding ground for unfair practices. The division of labour between remarketing companies and waste disposal service providers on the one hand, and recycling firms and manufacturers on the other, shifts responsibilities and thus encourages non-compliant behaviour.

  • Compliance

    In the field of electrical recycling, compliance regulations govern how waste electrical and electronic equipment must be disposed of in an environmentally sound manner. Breaches occur particularly in the first three stages of the value chain: registration, collection, and transport or import. It is precisely here that it becomes apparent that, despite their detailed provisions, the existing laws are often not effective enough.

  • Tax evasion
  • Poor governance
  • Product
    responsibility
  • Customer safety
  • Labelling of products
  • Marketing, Advertising
  • Protection of customer data