Consumer Electronics

Appliance Manufacturing

The Appliance Manufacturing industry includes companies involved in the design and manufacturing of household appliances and hand tools. The industry sells and manufactures products around the world, primarily selling products to consumers through retail locations.

Hardware

The Hardware industry consists of companies that design and sell technology hardware products, including computers, consumer electronics, communications equipment, storage devices, components, and peripherals. Many companies in the industry rely heavily on the Electronic Manufacturing Services & Original Design Manufacturing (EMS & ODM) industry for manufacturing services. The industry is expected to continue to grow as the use of technology rapidly grows, especially from consumers in emerging markets.

‍

Source: SASB

The electronics sector is facing challenges due to the increasing consumption of electronics, which will generate huge amounts of e-waste, only 20% of which is formally recycled. Electronic manufacturers have made progress in reducing energy use and GHG emissions but the high amount of e-waste remains a wasted opportunity. Investment opportunities exist to exploit e-waste, with manufacturers focusing on environmental targets in the design process, using sustainable raw materials, and using circular economy solutions to manage e-waste by returning materials and components to the industry for reuse.

‍

Industry Characteristics

• The UN estimates humans generate 50 million tonnes of electrical and electronic (EE) waste every year and the problem is expected to bigger – 120 million tonnes by 2050. However, currently only 20% of this is formally recycled. Source: United Nations
• The global consumption of electronics is forecast to double by 2050. The volume of electronic waste is growing at a rate of 6.5% every year, and only 20% of the waste is recycled efficiently. Source: Vtt Research

Sustainability Impact

• Annual e-waste is valued at USD 62.5 billion, more than the GDP of some countries. It is estimated that one tonne of cell phones contains as much gold as 70 tonnes of gold ore, and that up to 7% of the planet’s gold is lost in e-waste. Source: SGS
• Consumer electronic product manufacturers have made great advances in reducing energy use and GHG emissions. Examples from leading electronics companies include 70% greater efficiency in products compared with ten years ago, use of only renewable energy at facilities and a 466,000-ton reduction in GHG. Source: SGS

Sustainability Investments to watch

• The introduction of new innovative technologies that can be applied on-site and new business models can definitely improve the overall envrironmental performance and eventually balance the caused environmental impacts of a manufacturing site. Source: European Commission