Inside ABB’s Circular Economy Success Story

E-waste is a towering problem.

A record 62 million tonnes of e-waste was produced in 2022, up 82% from 2010.

Now, with stats suggesting that only 12.5% of e-waste is recycled and a further 85% sent to landfill, figures suggest that e-waste makes up more than 70% of our overall toxic waste — a stat that will only rise if action is not taken now.

With e-waste undoubtedly posing an increasing threat to our environment, sustainable industrial practices must be adopted to tackle this issue head-on. 

Swiss multinational electrical engineering corporation ABB is spearheading solutions in this area with its innovative Parts Circularity Program which is setting a new standard for the industry when it comes to reducing electronic waste.

ABB: Pioneering circularity and resource preservation

ABB is far from new to encouraging recycling, repurposing and the preservation of precious materials.

In line with this, the company is moving toward a circular business model that eliminates waste and keeps products and materials in use.

To empower its customers in achieving their sustainability goals, ABB has implemented a comprehensive suite of solutions designed to extend product lifecycles and minimise waste. 

Its approach encompasses retrofit solutions, take-back programmes and recycling services, all aimed at giving ABB products a second life and enhancing their efficiency.

Data collected over a four-year period from the launch of the ABB’s Parts Circularity Program shows the amount of electronic waste returned by customers and then sent to landfill reduced by 93%.

What is The ABB Energy Industries Service Parts Circularity Program?

The ABB Energy Industries Service Parts Circularity Program not only addresses the growing concerns surrounding electronic waste but also aligns with broader climate goals by promoting a circular economy.

Founded in 2020, the programme has reduced the amount of electronic waste sent to landfill from 214.5kg in its inaugural year to 14.2kg by the end of 2023.

Its impacts are wide-reaching.

By repairing, reusing and recycling faulty parts, ABB is reducing the need for new manufacturing, which decreases Scope 3 emissions associated with raw material extraction and production and has a more positive wider supply chain impact.

As well as this, the 93% reduction in electronic waste sent to landfills directly impacts Scope 3 emissions related to waste disposal in the value chain.

When it comes to customer emissions, ABB’s offering of remanufactured and refurbished parts means it is helping its customers reduce their own Scope 3 emissions associated with purchased goods and services.

“End-to-end traceability and extending the lifecycle of our products is crucial, especially in the face of a rising global demand for critical materials,” says Marie-Hélène Westholm-Knebel, Global Head of Sustainability at ABB Energy Industries. 

“Without the transformation of production and consumption models to support the circular economy, we cannot meaningfully preserve natural resources and cut emissions.

“Our collaborations with recycling partners ensure that sustainability standards are upheld from the very beginning to the final stage of a product's lifecycle.”

This sentiment is echoed by Paul Sundt, Service Segment Manager at ABB Energy Industries.

He says: “The success of this programme has already been proven at industrial plants around the world where our customers have service agreements that enable them to play an active role in striving for a circular economy.

“We hope to see this continue as more customers realise the value and improved sustainability, that can be generated across their supply chain.”

How else is ABB’s Parts Circularity Program reducing Scope 3 emissions?

Alongside encouraging general circularity, the Parts Circularity Program focuses on extending product lifecycles and reducing reliance on virgin resources. This, although indirectly, contributes to Scope 3 emissions reduction throughout the supply chain.

And as part of the wider picture, ABB’s emphasis on circularity principles aligns with Scope 3 emission reduction strategies by promoting more sustainable production and consumption models.

The programme’s end-to-end traceability and sustainability reporting capabilities are an added circularity bonus, as it enables better tracking and management of Scope 3 emissions for both ABB and its customers.

A model for the future

ABB's circularity strategy is a cornerstone of its broader sustainability agenda, focusing on resource preservation throughout a product’s lifecycle. 

The company is actively working to establish a global ecosystem of partner networks to drive circular principles and foster new business models that promote repair, reuse and recycling best practices.

By demonstrating that significant reductions in industrial e-waste are not only possible but also economically viable, ABB is paving the way for a more sustainable future in industrial electronics.

The success of this programme serves as a call to action for other industries to adopt similar circular economy principles, potentially revolutionising how we approach waste management and resource conservation on a global scale.

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