Information is an essential resource for all businesses today and is the key to growth and success. However, companies have to ensure that the information held on their IT systems is secure. 

Recycling: WEEE and safe disposal

by Sara White

The WEEE directive has affected more than just physical hardware disposal as data security concerns become one of the most important factors in the asset retirement audit trail.

When it comes to end-of-life, computers and printers present a real hazard to the environment. But the days of dumping redundant hardware untreated in landfill are over. There are also changes affecting the waste management process with new responsibilities on business to ensure that all waste is pre-treated to reduce landfill.

Following the introduction of the WEEE directive in July 2007, it is no longer legal, far less environmentally acceptable, to discard ICT equipment without tracking the disposal process.

The issue is about how companies design equipment, reduce energy consumption and produce less packaging. The responsibility is beginning to shift back to manufacturers

Despite increasing efforts by manufacturers to reduce the amount of hazardous substances used in the manufacturing process, due in most part to the RoHS legislation, the reality is that end-of-life models are much more likely to contain hazardous materials.

One of the most important issues to consider before disposing of ICT equipment is the security of your data.

A host of security breaches in recent months has highlighted the critical value of information. As an end-user it is your responsibility under the Data Protection Act to protect the data and to destroy or disable the data before the machine is recycled or remanufactured.

This is one of the most pressing concerns when considering disposal and the best reason to review carefully any supplier that is recycling your hardware.

For enterprises, this is an integral part of their business, but for smaller organisations the importance of this information and its sensitivity, commercially and competitively, can be overlooked.

Asset retirement company Dataserv has ISO 27001, the highest security rating relating to data. Dataserv managing director Neal Saunders said: "Most organisations have heard of the WEEE directive, but they mistakenly believe that it is a free replacement for a service that used to be charged. But it is a way for manufacturers to offer pure disposal. Businesses are more aware than 18 months ago and there are more solutions in place, but this is only the tip of the iceberg. It will take up to five years to have fully established processes in place.

"If you look at how many companies use companies like ours it is the tier one companies - they have a lot to lose in terms of data and brand. Data security and environmental considerations are important to them. I view our business as an insurance policy - if there is a breach, they know they have taken all possible measures."

The current penalty for breaching the Data Protection Act is a fine of £5,000. For a non-specialist company that is simply installing and de-installing the machines, the penalty for non-compliance is negligible.

The WEEE directive has caught most organisations with their pants down and from a budgeting point of view few companies have been prepared for it

"Every organisation is dealing with huge volumes of data that relate to financial and personal information. Every transaction you make is recorded digitally. That is how much information is in the domain," said Saunders.

Choosing a supplier

When choosing a supplier, it is important to look at how long it has been in business, quality credentials such as ISOs and its existing customer base.

If you are assessing a company to handle data removal, find out whether they offer the service on or off site, and what methods they use. Do they have security-cleared staff, is the service certified in some way and is there an auditing scheme in place? The most secure method of destroying data is by degaussing, bombarding the data with an electromagnetic force and destroying the motherboard. The benchmark degaussing software is Blancco.

If you are simply looking for someone to remove hardware, always assume that the kit will be resold in some form and take all necessary steps to wipe hard drives and remove all data.

"The WEEE directive has caught most organisations with their pants down and from a budgeting point of view few companies have been prepared for it," said Barron McCann Technology data destruction project manager Chris Avis.

"From an IT perspective it has opened up a market for second-hand equipment, but there is a big security issue. A lot of organisations are very worried about security when equipment is in use, but it is at end of life that organisations are very lax."

Another issue is cost of disposal. "From a commercial perspective, there is always an element of cost against risk. When you look at how cheap PCs and laptops are - £300 - 20 per cent of the cost of the equipment is for end-of-life disposal.  When you purchase equipment you need to build in end-of-life and degaussing costs," added Avis.

Consumables

Consumables are not covered by the WEEE directive, but there are signs that the number of toner and ink cartridges returned for recycling is increasing. However, vendors are coy about revealing actual figures about the volume of cartridge returns.

Ricoh estimates that 30 per cent of its total cartridge sales are recovered. "There is no legislation on the market because toner is not a hazardous waste, but it needs to be treated properly," said Wagland. "We are seeing an increase generally in consumable recycling. There is a strong market for refillers and there are a lot of companies that collect cartridges. There is a huge concern that a large percentage cannot be refilled."

Canon recycled 789,976 cartridges in 2006, "but does not have figures on how that relates to overall sales," said Everitt-Pascoe.

Cartridge recycler Reclaim-it estimates that  between 50 and 60 per cent of cartridges are thrown away today, compared with as much as 75 per cent in 2004.

Takeback

There has always been an element of takeback, recycling or remanufacturing with many of the big manufacturers indicating that little has changed since implementation of WEEE.

Dell offers a range of services for end-of-life treatment and disposal from complete asset recovery to remanufacturing and recycling.

Dell takeback and recycling manager Jean Cox Kearns said: "With our asset recovery service, we will take equipment from the desk to partners' locations. The first step is to do a data over-riding process; some people want that on-site before removal. Companies need to be very conscious about data security."

In the SMB sector, Cox Kearns sees less evidence of takeup of Dell recycling schemes. "We have not seen a huge amount coming back from the SMB market; they may not be so aware of the WEEE directive. They have more of a tendency to pass the equipment to a broker as they are dealing with lower volumes and might feel they have a closer relationship with their reseller. Brokers could recover more value for those customers than we could. There is a cost to recovery."

Remanufacturing

It is clear that there is a market for remanufactured machines. "Around 40 per cent of what comes back to Dell is remarketed; it depends on the specification of machines, condition and overall age," she added.

HP was also prepared for the changes. McIntyre said: "For our business customers it was a bit of a non-event; we have been offering the service since 1998. It was more about reporting as we already had programmes operating. We have worked hard with the channel to explain our role and their role."

Copier behemoth Ricoh has a long track record in recycling. According to environment manager Tom Wagland, little has changed since WEEE was introduced. He said: "There has been no change in the business model, but there has been an increase in returns. Competitive machines are sold onto traders,
Ricoh machines are remanufactured and only a small percentage is recycled.

Cartridge recycler Reclaim-it estimates that  between 50 and 60 per cent of cartridges are thrown away today

"Every machine that comes into Ricoh's Green Centre has its hard drive reformatted twice," added Wagland. "When Ricoh instigated the Green Centre the idea was to make it revenue-neutral. Now it is well-established it is break-even, if not profitable."

Canon environment manager Surrie Everett-Pascoe added: "Businesses are becoming much more aware and increasingly we are getting questions about our ability to recycle. We have always taken away end-of-life copiers and printers, and when we install products we take away all products regardless of manufacturers. We ask customers to make sure data is removed, but having seen the recycling process, everything is crushed and shredded.

"We have been collecting and recycling used cartridges for 17 years. Canon is committed to a zero landfill policy and each element of every returned toner cartridge is reused - be it as a component in a new toner cartridge, as a base material, or as a substitute for fossil fuels.
No part of the toner cartridge makes its way to landfill."

Contact file

WEEE regulations
www.berr.gov.uk
www.environment-agency.gov.uk/weee/
www.netregs.gov.uk/