Intel: Implementing circular economy strategy to improve environmental benefits

Intel recently released a white paper on the role of reverse logistics in the reengineering of the life cycle of technology products. The white paper shows that teams from Intel's Global Supply Chain (GSC) division have worked together to ensure that less than 1% of product materials returned to Intel are eventually landfilled by implementing a circular economy strategy. In addition to environmental benefits, the circular economy strategy also created $30 million in added value in 2020. Based on Intel's long-term sustainable business practices, Intel engineers have also formed a team to reduce the footprint of packaging materials used in transportation and increase the choice of sustainable materials.

For decades, Intel employees have created value by optimizing the recovery and repair of returned products. Last year, the reverse logistics team in the global supply chain transformed related initiatives into a formal system for the company based on the concept of circular economy. With this new concept, the team has extended the life of products by adding repairability options, extending product warranties, and making full use of return data.

If the returned product cannot be reused or repaired, it will be handed over to Intel Resale Company (IRC) for recycling and transformation. IRC is responsible for managing the recycling and resale of semiconductor equipment, finished products and precious metals. Last year, IRC collected and recycled more than 3.8 million pounds of metal electronic waste from 23 countries, including returned products and waste from production sites.

In addition, both unfinished products sent through Intel’s global manufacturing network and finished products sent to customers need to be carefully protected to avoid damage during transportation. In 2019, Intel’s Sustainable Packaging Team set a goal to ensure that by 2022, more than 95% of the materials (by weight) in Intel’s latest product packaging designs can be recycled or reused.

For example, the wafers shipped between Intel factories are extremely fragile. Engineers designed a more compact protective box that created less space for wafer transportation. The new solution reduced material use and packaging weight by more than 70%. Last year, these efforts saved more than 4 million kilowatt-hours of energy, equivalent to powering more than 650 American homes for an entire year1.

Not only that, the team also developed a new reusable thermoformed tray. This tray is used to provide customers with feed materials and products, eliminating the problem of trays being discarded and landfilled in the past. The new tray reduces the use of plastic overall and uses more recyclable materials. According to Intel's conservative estimate, the company has reduced the use of more than 16,000 tons of plastic materials since it began implementing these measures in 2009.

Intel's Ronler Acres campus in Hillsboro, Oregon, is surrounded by natural and artificial wetlands that help control flooding, filter stormwater, and provide natural habitat for plants and animals. (Image credit: Intel)

Intel introduced the RISE framework in its 2030 strategy and goals. RISE is a comprehensive approach to creating a more responsible, inclusive and sustainable future through technology, expertise and employee passion. In order to promote corporate responsibility awareness across the company, Intel is leveraging the skills of employees in various departments and regions to find innovative sustainable solutions to the world's greatest challenges.

“Stakeholder expectations are growing for resilient and responsible supply chains throughout the product lifecycle. Our 2030 RISE strategy and goals represent a comprehensive framework to address these needs, and our circular economy strategy enables Intel to reduce environmental impact, extend the life of our products, maximize reuse, open new revenue streams, and reduce total cost of ownership – a true ‘win-win’.”

- Jackie Sturm, Vice President of Global Supply Chain, Intel Corporation

Analysis based on the Trayak Environmental Impact Tool using data provided by Intel.