Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
SPEAKER_00 (00:00):
As we reflect on
2025, what have been the major
(00:03):
themes for the circular economy?
Here's a hint.
It's been a pivotal year.
Welcome to the Circular Future,showcasing stories of
circularity that reshaped howbusinesses operate and how you
can do it in your organizationtoo.
(00:36):
I'm your host, StephanieMcClarty, head of sustainability
at Quantum Lifecycle Partners,your trusted partner in
electronics circularity.
I always appreciate the end ofthe year where we reflect on
what's happened, what we'veaccomplished, and also how
things have shifted on a broaderlevel, especially with the
(00:58):
circular economy.
2025 has been quite a year,hasn't it?
Tariffs and New World Ord, we'reactually seeing breakthroughs
that are fundamentally changinghow we think about waste, value
creation, and also economicstrategy.
But we're also facing some harshrealities that really demand
(01:22):
action now.
So let's unpack five themes ofwhat's really happening in the
circular economy.
The numbers I'm about to shareshould be on every business
manager's radar.
We'll get started after thisshort message.
Picture this (01:38):
your company just
landed a major contract and
needs to scale up fast.
But what about all thatsensitive data on your old
equipment?
That's exactly where QuantumLifecycle shines, handling
everything from secure datadestruction to responsible
recycling.
Turn what could be a compliancenightmare into a seamless
(02:00):
transition.
Go to QuantumLifecycle.com formore information.
Welcome back.
Let's start with the elephant inthe room.
Or should I say the 62 millionmetric tons of electronic waste
in the room?
That's right.
We generate a record 62 millionmetric tons of e-waste globally
(02:24):
each year.
To put that in perspective,that's an 82% increase since
just 2010.
I mean, think about how muchsmarter things are now, with
batteries embedded and connectedto Wi-Fi, and really it's in
every facet of life.
We see all sorts of tech throughour recycling process at
(02:48):
Quantum.
Now, here's where it gets reallyinteresting from a business
standpoint.
We're only capturing just over22% of that waste for proper
recycling and recovery.
We're losing billions worth ofvaluable materials every single
year.
We're talking about industrialmetals like copper and aluminum,
(03:12):
precious metals like gold andsilver, and yes, those
incredibly strategic rare earthelements that everyone is
scrambling to secure.
The recycling industry isplaying a major part in the
solution to this.
We talk about our contributionto critical minerals in
Quantum's latest impact report.
(03:33):
Here's the challenge.
A lot of old devices are sittingin drawers and closets and
storerooms, a phenomenon calledelectronic hibernation that we
talk about in episode 55.
But here's the breakthroughthinking that's emerging in
2025.
(03:54):
This isn't just about recyclingbetter.
The experts are calling itcircular value creation, a
systemic approach that maximizesresource value through a
product's entire life cycle.
It's basically an economicstrategy that happens to look
(04:15):
like an environmental one.
And the market is responding.
Global e-waste management sectoris projected to hit$81 billion
this year, which is a 17%increase from just three years
ago.
The IT asset disposition sector,that's the reuse and remarketing
(04:36):
space, is on pace to reach$36billion by 2034.
Now let's talk about where thereal transformation is
happening.
At the design stage, we arefinally seeing a coordinated
pushback against plannedobsolescence.
(04:57):
Product design matters a lot.
A lot of choices early on impactwhether a device can be reused.
If components are secured withstrong adhesives or batteries
glued in place, or softwareupdates deliberately slow down
older devices, this all canforce a device into premature
(05:20):
replacement.
Yet the environmental savings ofextending a device are
absolutely profound.
If a laptop can be reused andrefurbished, it saves
approximately 54 kilograms ofembodied carbon, which is about
a 50% reduction in totalenvironmental impact.
(05:41):
Momentum has been building forthe right to repair movement,
and 2025 has been a year thatthat movement has gained some
serious legislative teeth.
Right to repair is the push tohave owners of devices be able
to repair their own devices orbring it to any technician
because basically parts andresources for repair are readily
(06:04):
accessible.
One in five Americans now livesin a state with some form of
right to repair protection, withCalifornia and Oregon passing
new legislation this past year.
In fact, Oregon just passed themost sophisticated anti-parts
pairing legislation that we'veever seen.
(06:25):
What is that?
Well, parts pairing is whenmanufacturers use software to
digitally marry specificcomponents to specific devices.
Even if you replace a batterywith a genuine manufacturer
part, if it wasn't authenticatedby their central server, the
software triggers error messagesor disables functions.
(06:48):
Oregon's new law is targetingthat very thing, that technical
hurdle.
And beyond the US, there isprogress in Canada, in the
European Union, and more.
We covered the right to repairmovement in episode 30 with iFix
It and 41 with phonemanufacturer HMD.
Alright, the next theme is thecollaboration imperative.
(07:13):
The experts at the CanadianCircular Economy Summit this
year made it crystal clear.
Collaboration is the absolutecurrency of circular
transformation.
You cannot have one companythrowing away a complex waste
stream if another company,perhaps it's a startup, could
(07:33):
use it as a primary input.
We're seeing this play out infascinating ways.
Andrew Telfer of CircularInnovation Council covers this
in episode 54, which is storiesof circular business
transformation.
Another interesting example isemissions reduction, Alberta.
They've injected$105 millioninto 35 circular economy
(07:59):
projects, with total projectvalue nearing a half a billion
dollars.
They're using revenue taxed fromlarge industrial emitters to
fund circular technologies inother sectors.
But it's not just happeninglocally.
The international cooperationthrough the Eureka Network,
that's 47 countries focused onmarket-driven RD, is actively
(08:23):
prioritizing circular valuecreation.
The message is clear.
Incremental improvements to theold linear take, make, dispose
model are insufficient.
If you want true circular valuecreation, you have to
fundamentally rethink the entiresystem.
(08:44):
The best way to do this is tocollaborate together.
Now let's talk about somethingthat's absolutely critical to
all efforts, but oftenoverlooked.
It's the digital spine thatmakes circularity work.
We need comprehensive trackingof materials throughout their
extended lives, and that's wheredigital product passports really
(09:07):
come in.
These are complex digitizedrecords being mandated in places
like the EU and Japan.
They track material properties,circularity information, chain
of custody for electronics, andmore.
When you buy a device, thedigital passport tells you where
components came from, how muchrecycled content is in it, how
(09:30):
to repair it, and follows it allthe way to the recycling center
at its end of life.
I know we're really encouragedat Quantum about the
possibilities of this to enablefurther reuse and recycling.
But here's the challenge arounddata.
We need to be really smartaround implementation.
The environmental footprint ofdata transmission itself can be
(09:54):
massive.
You have to find that sweet spotthat balances systems
performance with energyefficiency.
If the digital spine uses toomuch energy, it actually
counteracts the environmentalbenefits that it's trying to
enable.
This is where AI, artificialintelligence, could play a
transformative role.
(10:15):
And wow, has 25 been the yearwe've seen AI truly transform
both our business and personallives.
But it's only if AI is poweredsustainably.
AI can optimize those incrediblycomplex circular processes, but
the energy powering it has to beclean.
We cover the hiddenenvironmental impact of AI in
(10:37):
episode 47.
All right, lastly, compliance.
Compliance always has to be akey consideration.
And here's something that everybusiness leader needs to
understand now.
January 1st, 2025 marked afundamental shift in global
e-waste regulations.
The e-waste amendments to theBasel Convention changed the
(11:00):
rules for international e-wastetrade in a big way.
This game changer is mandatoryprior informed consent
documentation for all crosswaterall sorry, excuse me.
The game changer is mandatoryprior informed consent
documentation for allcross-border movements of
(11:21):
e-waste, so both hazardous andnon-hazardous.
Before 2025, this was onlyrequired for explicitly
hazardous waste.
The enforcement has beenimmediate and serious.
Between January and May of 2025,122 containers of unapproved
e-scrapped were intercepted inMalaysia alone.
(11:44):
And the consequences ofnoncompliance are severe:
enormous penalties, operationaldelays, inventory bottlenecks,
and significant reputationaldamage.
But here's the thing (11:54):
this level
of rigor is actually good for
legitimate circular businesses.
It closes the massive loopholethat allowed waste to end up in
developing nations withoutproper processing
infrastructure.
It guarantees accountabilityacross borders.
If you want to know more aboutthe Basel changes, check out
(12:14):
episodes 44 and 45.
Alright, now let's look ahead.
Here's what all business leadersneed to be considering as we
head into the new year.
The question isn't whether toengage with circular principles.
It's how quickly you can buildthe partnerships and compliance
(12:35):
capabilities and design thinkingneeded to turn this challenge
into competitive advantage.
It's about how to embrace amassive new shift in thinking,
not just tuning up the oldsystem, but a fundamental
rethinking across every sectorto make it circular.
We also need to do this as twomajor forces reshape our
(12:59):
organizations and our soci.
We also need to do this as twomajor forces reshape our
organizations and society atlarge: climate change and AI.
So, what are organizations doingto embrace the circular economy
and be competitive into the2030s and beyond?
Well, we're covering that verything here on the circular
future (13:22):
the stories of what
businesses have done to embrace
and advance circularity.
We've already told many stories:
Maple's Labels in episode 50, (13:27):
undefined
Sustainable Transport Pilot thatleverages AI in 52, Legend Bob
Willard's playbook forsustainable procurement in
episode 51, and we'll have lotsmore stories of how
organizations have achievedcircular successes in 2026.
(13:49):
And you know what?
I can't wait.
Thank you for being part of thisjourney and all the best in the
year ahead.
And remember, if you are lookingfor a leader in electronics
lifecycle management, we'd loveto chat.
Head on over toQuantumLifecycle.com and contact
us.
This is a Quantum LifecyclePodcast, and the producer is
(14:09):
Sanjay Trevetti.
Thank you for being a circularfuture champion in your company
and beyond.