This article originally appeared in the September/October 2024 issue of Startups Magazine. Click here to subscribe

As the global community becomes increasingly aware of these issues, sustainable and ethical sourcing of electronic components has emerged as a critical concern.

Understanding sustainable and ethical sourcing

Sustainable sourcing refers to the procurement of goods and materials in a manner that minimises environmental impact, ensuring that natural resources are preserved for future generations. It involves the adoption of practices that reduce carbon footprints, minimise waste, and promote the use of renewable resources. Ethical sourcing, on the other hand, emphasises the fair treatment of workers, adherence to labour rights, and the avoidance of exploitative practices such as child or forced labour. Together, sustainable and ethical sourcing ensure that the production and consumption of goods are not only environmentally responsible, but also socially acceptable.

How the electronics industry is addressing these concerns

In the electronics industry, the integration of sustainable and ethical sourcing practices is not just a matter of corporate responsibility, but a necessity for long-term viability. The electronics sector relies heavily on the extraction of finite natural resources, such as rare earth metals, which are often sourced from regions with poor labour practices and weak environmental regulations. By adopting sustainable and ethical sourcing practices, companies can mitigate the environmental and social impacts of their supply chains, ensuring that their operations contribute positively to both people and the planet.

To promote sustainable and ethical sourcing, manufacturers in the electronics industry are actively adopting a range of strategies, starting with the responsible sourcing of raw materials. Regulations such as the Conflict-Free Minerals Act put the onus on manufacturers to ensure materials are sourced in a manner that respects both human rights and the environment. Manufacturers are also exploring technological innovations and advances in materials science; this includes the development of sustainable alternatives to rare earth metals, the use of alternative materials and increasing the use of recycled content to reduce the environmental impact of electronic components. Additionally, blockchain technology offers enormous potential to enhance supply chain transparency by providing a secure and permanent record of transactions, making it easier to trace the origin of materials and ensure ethical practices.

Sustainable manufacturing practices are also essential for minimising the environmental impact of electronic components. Companies are investing in energy-efficient production methods, such as the use of renewable energy sources and the implementation of energy-saving technologies in factories. Furthermore, they are reducing the use of toxic chemicals and improving waste management practices to help mitigate the environmental risks associated with manufacturing.

Important considerations

Whilst the electronics industry still has a lot of work to do, great strides have already been taken which is reassuring - however it is important to note that to reap the benefits of all this background work, customers must think carefully about their choice of supply chain partners.

Firstly, we would strongly recommend only using reputable authorised distribution channels like Anglia who can ensure the integrity of the component supply chain and provide access to all the documentation and resources needed to ensure compliance. The leading manufacturers who Anglia work with recognise the importance of sustainable and ethical sourcing and have integrated these principles into their corporate social responsibility (CSR) and environmental, social, and governance (ESG) strategies. Our recently introduced environmental resource hub, www.anglia-live.com/sustainability, available free of charge to all registered Anglia Live users, gives customers complete transparency with access to Anglia’s policy statements and those of our partner suppliers.

Secondly, sustainability and ethical sourcing should not only be the responsibility of the purchasing team within an organisation; to be effective it must be considered in all areas of a business, right down to the choice of component the engineer makes at the very start of the design process.

In fact, the careful selection of components is one of the most critical aspects affecting sustainability and ethics due to the aforementioned complex supply chain of raw materials, processing, and assembly sites involved in their manufacture. At the design stage the focus will often be on finding components which meet the technical requirements of the application, consideration of sustainability, and ethical sourcing generally comes later, sometimes as late as the mass production stage where it can cause real headaches. Any problems arising at this stage can mean severe delays in production and potentially having to take the design back to the drawing board. Issues that can arise could be as simple as a manufacturer not being able to provide documentation that shows all the raw materials used in the manufacture of the product were sustainably and ethically sourced and comply with the appropriate regulations.

At the other end of the scale a component may already be, or at risk of becoming, subject to export control regulations or a trade embargo that could completely prevent the use of the component in certain applications and/or regions of the world. This is becoming an increasingly common occurrence especially with high technology products that contain specific intellectual properties or cryptography, and can often be driven by national security concerns. In addition, geopolitics can have a significant impact; products may become subject to punitive trade tariffs such as Anti-Dumping duties designed to prevent distortion of domestic market dynamics by imports believed to be below fair market value.

Anglia can offer invaluable advice on the selection of components at the design stage to help avoid these issues.

Cost implications

Of course, there is a cost associated with implementing sustainable and ethical sourcing practices. Sustainable materials and ethical labour practices may come with a higher price tag, so the delicate balance of the need for sustainability with the financial realities of the business requires a strategic approach. This includes investing in innovation, building long-term partnerships with suppliers, and continuing to raise consumer awareness around the value of sustainable and ethically sourced products.

It is also important to consider the intangible benefits companies can realise by taking leadership in sustainability and ethical sourcing. Today’s consumers are much more conscious of the impact on the environment and society their own product choices have; products and brands which proactively show they are addressing these concerns have been proven to have a perceived higher value.

Conclusion

Sustainable and ethical sourcing of electronic components is not just a trend but a critical necessity in the modern world. The environmental and ethical challenges associated with the production of electronics require urgent attention from companies, governments, and consumers alike. By adopting responsible sourcing practices, improving supply chain transparency, and investing in sustainable technologies, the electronics industry can reduce its impact on the planet and contribute to a more equitable global economy. The future of electronics depends on the choices we make today — choices that must prioritise sustainability, ethics, and the well-being of all. To find out how Anglia can help you meet sustainability and ethical objectives in your next design, contact us today via www.anglia-live.com or scan the QR code.