E-waste is a significant global issue, which the UK plays an enormous part in. This blog is part 1 in a 2-part blog series where we discuss all things e-waste.
What is E-Waste?
E-waste, short for electronic waste, is all electronic and electrical equipment and its parts that have been discarded as waste without the intent of re-use. This includes any items with plugs, cords, or electrical components, such as home appliances, children’s toys, electric toothbrushes, computers, and more.
E-waste is not biodegradable, and causes both human and environmental harm, which will be discussed further in part 2 of this blog series next week.
Some Statistics
According to Uswitch’s 2022 figures, the UK is the second largest producer of e-waste in the entire world, with 23.9kg of e-waste produced per capita.
Norway led the figures with 26kg produced per capita, but Uswitch predicted that the UK will overtake them to become the world’s biggest contributor of e-waste this year.
The Global E-Waste Monitor 2017 found that in one year, 44.7 million metric tonnes of e-waste is generated, with Europe and the US alone contributing to almost half of this.
Despite being the world-leader in e-waste recycling, the EU still only properly collects and recycles 35% of e-waste, with an even lower global average of 20%.
The Impact of Consumerism
Capitalist consumerism is hugely contributing to the issue of e-waste, as we are encouraged to crave more and more, with adverts pushing us to buy the latest phone, and special deals like Black Friday encouraging us to splash out on new TVs or laptops.
We live in a culture where we are never fully satisfied with what we have, and there is always something better and newer round the corner. And we are often shielded from the true cost of this consumerism, given that a lot of e-waste is shipped to third world countries, where other people will be the ones putting their lives in danger to sort through the parts of our old mobile phone.
For example, the total recovery rates for cobalt (used in batteries) are only 30% despite technology existing that could recycle 95%.
They also found that mining discarded electronics produces 80% less emissions of carbon dioxide per unit of gold compared to mining it from the ground.
Therefore, we are missing out on opportunities to reclaim valuable raw materials just from failing to properly process our electronic waste.
Join us for part 2 of this blog series next week, where we discuss the various harms of e-waste and steps we can take to reduce our contribution to the problem.
by Red Star Wealth
Australia is introducing a ban on disposable vapes, something which many are calling upon the UK Government to implement too.
Australia’s Decision
In a recent speech, Health Minister for Australia, Matt Butler, announced:
“vaping is now a very serious public health menace for Australia, particularly impacting our youngest members of the community. We’ve seen stories over the course of High School exam season of High School students having to wear nicotine patches in order to get through a two or three hour exam, such is their level of nicotine addiction”
“from the 1st of January it will be illegal to import any disposable vape. From the 1st of March it will be illegal to import and supply any vape that does not comply with TGA standards- and that is that it be non-disposable, that it be plainly packaged, that it not be flavoured, and have a range of other conditions about nicotine content and the absence of certain chemicals we know to be particularly harmful”
Australia is not the only nation with concerns about disposable vapes, with the EU proposing a ban in 2026 and France rolling out a ban this month.
Marketed at Children
As noted by Butler, one of the main concerns surrounding disposable vapes is their impact on children. It has been noted by many, including the Local Government Association which represents English and Welsh Councils, that more and more children who have never previously smoked are starting to vape. This means that vapes are increasingly becoming an introduction to nicotine addiction, rather than just a means to help people stop smoking.
According to the Local Government Association, councils are especially concerned by the marketing of vapes, which often contain fruity flavours and colourful packaging, both of which could particularly appeal to children. They added:
“Strict new measures to regulate the display and marketing of regular vaping products in the same way as tobacco are needed”
Environmental Concerns
Not only are these vapes harmful to humans, they also have huge negative effects for our environment. Research commissioned by Material Focus and conducted by Opinium found:
50% of single-use vapes are thrown away in the UK
1.3 million disposable vapes are thrown away every week in the UK. Per year, this is enough vapes to cover 22 football pitches
Each of these disposable vapes contains an average of 0.15g of lithium. When we consider that 1.3 million are thrown away every week, this adds up to 10 tonnes of lithium waste every year, which is the equivalent to being able to power 1,200 electric vehicles
Almost 1/5 of UK adults have bought either a single-use, rechargeable, or rechargeable with single-use chamber vape
Disposable vapes are hugely unsustainable, as they tend to be thrown away rather than properly recycled. These single-use vapes are designed as one singular unit so that batteries cannot be separated from the plastic, meaning that they cannot be recycled without special treatment.
This has caused concern for the RSPCA, who have noted that the materials and substances that make up disposable vapes, including lithium, plastic and nicotine, can all be hazardous to animals.
Overall, it seems that government action needs to be taken surrounding disposable vapes, including stricter marketing and manufacturing regulations, as well as finding a way to make them more widely recyclable.
by Red Star Wealth
In February 2019, the Environmental Audit Committee found that we bought more clothes in the UK than any other European country. Fast fashion is becoming ingrained in our society, but its impacts are severe.
What is Fast Fashion?
Fast fashion is the mass production of clothing at low costs so that brands can immediately maximise profits by jumping on the latest trends whilst remaining price competitive.
An Unsustainable Practice
The Environmental Audit Committee estimated that around 300,000 tonnes of textile waste ends up in household black bins in the UK every year. This is a shocking insight into the culture of waste that has taken over, not just the UK, but most of the world.
The Committee also stated:
“Textile production contributes more to climate change than international aviation and shipping combined, consumes lake-sized volumes of fresh water and creates chemical and plastic pollution.”
The environmental impacts of fast fashion are huge, with high CO2 emissions, numerous pollutants, and extreme water usage. In fact, it takes around 2,700 litres of water to make just one cotton t-shirt, the equivalent of providing drinking water to an individual for 900 days.
Fast fashion is incredibly damaging to the planet, animals, and to the workers involved in its production. There is an issue of usage of child labour, prison labour, forced labour and bonded labour in the creation of these textiles, in order to mass produce at low costs.
Greenpeace Detox Campaign
Greenpeace’s Detox Campaign has helped create transformation in the clothing industry. The campaign was aimed at reducing the popular use of toxic chemicals in clothes manufacturing, which were being released into waterways in countries like China, Indonesia and Mexico.
80 brands signed the Greenpeace Detox Commitment, agreeing to “implement preventative and precautionary action on chemicals, by setting goals to eliminate hazardous chemicals in manufacturing.”
Their report, ‘Destination Zero- seven years of Detoxing the clothing industry,’ looks at the changes in the seven years following the campaign’s launch in 2012. They found that “great progress” had been made in phasing out hazardous chemicals, with brands within the clothing industry beginning to take responsibility for their production process.
Sustainable Clothing Action Plan 2020 Commitment (SCAP)
The SCAP commitment was voluntarily signed up to by over 90 organisations representing over 48% of UK retail clothing sales to help reduce the impacts of their products.
This commitment was launched by WRAP, a climate action non-governmental organisation which is working to tackle the causes of climate crisis. The commitment ran from 2012 to 2020, with aims of reducing the carbon, water and waste impact of the UK clothing and textile industry.
The plan had huge positive results, managing to achieve a 21.6% reduction in carbon and a 18.2% reduction in water, as well as meeting 60% of their waste target.
Textiles 2030
Driven by the success of their SCAP initiative, WRAP has created a new voluntary agreement for those in UK fashion and textile organisations: Textile 2030. 110 businesses and organisations, representing 62% of all clothing products placed on the UK market, have signed up to this agreement.
The aims of this initiative are to reduce the aggregate greenhouse gas footprint of new products by 50% and aggregate water footprint of new products sold by 30%.
Let’s hope they are successful in their aims to reduce the toll that fast fashion is taking on the environment to help our planet!
Government Policy is Lacking
Research undertaken by Seahorse Environmental and Dolly Thesis, commissioned by Hubbub, found that since 2007, the government has only produced 5 strategies and 19 policies tackling fast fashion, with only 1 policy proposed with any cost or budget.
It also found that only 32% of UK policies take direct action against fast fashion, with the majority merely raising awareness of the issue.
However, there has certainly been some progress made to address the issue via legislation. This can be seen through things like:
The plastic packaging tax April 2022– a tax applied to plastic packaging manufactured in, or imported into the UK, which doesn’t contain at least 30% recycled plastic
The Competitions and Markets Authority announcing in July 2022 an investigation of ASOS, Boohoo, and Asda’s George label, regarding potentially misleading claims of their products being environmentally friendly
The Modern Slavery Act 2015– Section 54 of this act required UK companies with annual turnovers of £36 million or more to produce an annual modern slavery statement and disclose what steps they are taking to prevent this issue in their supply chains
However, it does seem that more government action is needed to address the devastating impacts of fast fashion, rather than being reliant on the actions of non-governmental organisations and charitable groups…
by Red Star Wealth
Nationwide have recently introduced an interest-free loan for homeowners seeking to make green energy improvements to their properties, which will be available from 1st June.
Nationwide’s Green Additional Borrowing Mortgage
With Nationwide’s new product, borrowers will be able to take out loans of £5,000 to £15,000 with a 0% interest rate, fixed for 2 or 5 years. After this time period is up, the interest will rise to Nationwide’s variable standard mortgage rate for the remainder of the mortgage term.
To qualify, borrowers must be an existing member with Nationwide mortgage and spend at least 50% of the advance on non-structural energy efficient home improvements. The listed examples by Nationwide include:
Solar panels
Air source heat pumps
Cavity wall insulation
Double glazing/replacement windows
Electric car charging point
Ground source heat pumps
Loft insulation
Small scale wind turbine
Borrowers will be able to borrow up to 90% loan-to-value, meaning they will have to fund at least 10% of the improvement costs themselves.
A Step in the Right Direction
This move by Nationwide will help to reduce the initial cost burden of green home improvements on the individual, helping to encourage sustainable living practices and energy efficient improvements.
According to Government research in 2021, around 20% of carbon emissions came from homes. Therefore, focussing on making homes greener is a significant step towards creating a more sustainable future.
According to the Greener Homes Attitude Tracker, commissioned by NatWest, cost acts as the biggest barrier to sustainable home improvements:
“According to the latest data, the cost of the work required was by far the greatest barrier, cited by 71% homeowners not planning sustainable home improvements in the next 10 years”
Even if it saves them money on their energy bills in the long-run, many homeowners simply don’t have the money spare to pay for changes upfront in one lump sum. Therefore, monetary barriers act as a huge barrier to ordinary people ‘going green’. Nationwide’s new product is a great example of how to help people become more sustainable, as it allows them to make that initial cost.
Nationwide’s Other Green Initiatives
This new product is not the only move by Nationwide to go greener. They also have a Green Reward offer where you can get cashback when buying an energy efficient home.
With this, you can claim £500 cashback when buying a property with an Energy Performance Certificate score of 92 or above, or £250 if the property has a score of 86 to 91.
Overall, we need to keep pushing towards a more sustainable future, and any and every step that allows us to do that is a cause for celebration.
by Red Star Wealth
Smart meters are becoming increasingly popular, with 54% of all meters in Great Britain recorded as smart or advanced meters at the end of September 2022. Let’s have a look at the pros and cons of smart meters so that you can decide what’s best for your household.
What are Smart Meters?
Smart meters record your consumption of gas and electricity so that it’s easier to monitor your energy usage. It shows you how much energy you are using and what this is costing you on an in-home display. It also sends meter readings to your energy supplier automatically.
Pros of Smart Meters
It’s easy to track your energy usage so that you can make changes to save yourself money on your utility bills. You can clearly see how different appliances affect the cost of your bill, which can help you make informed decisions about what to cut down on
If you do choose to reduce your consumption of gas and electricity due to your smart meter, this also has a positive environmental impact. Smart meters encourage sustainability, both in terms of your finances and the environment
Your meter reading is automatically sent to your energy provider, meaning you don’t have to do it manually. Not only does this save time and effort, but it also gets rid of the need for estimated bills so that you are only charged what you actually use
The in-home display is easy to understand because it translates your energy usage in terms of the money it’s costing you
Many suppliers are now offering discounts and cheaper tariffs for those with smart meters, so it’s likely that you can get a good deal
Cons of Smart Meters
First generation smart meters use a mobile network signal to send data back to your energy supplier. This means that if you have any issues with the signal in your area, it affects your smart meter’s ability to send this information to the supplier
Smart meters don’t automatically equate to saving money. They simply help you monitor you energy use and choose whether you want to cut back on certain things based on the information you have. The meter in isolation does not reduce the cost of your monthly bill
You might find it stressful seeing the meter constantly go up every time you switch on the oven or boil the kettle
If you have a first generation smart meter and switch providers, it may lose its smart functionality, meaning it keeps recording your usage but can no longer automatically send the readings to your new provider
Check out our previous blog where we discuss the forced installation of prepayment meters to people’s homes in the UK.
by Red Star Wealth
Increasingly, investors are taking into account non-financial factors when considering potential investment opportunities
What does ESG stand for?
Environmental
Social
Governance
Environmental
The environmental component of ESG investment concerns a company’s impact on the environment. When looking at potential investments, investors may be interested in things like:
whether a company has policies addressing climate change
what its energy efficiency is like
its greenhouse emissions
Global warming is (quite literally) a hot topic in society at the moment. This has led to more investors considering companies’ environmental footprints
Social
This looks at a company’s employee, supplier and customer relations, as well as its relationship with the surrounding community
Regarding customer relations, this may be as simple as wrongful dismissal of employees, or how well the business adheres to health and safety regulations
However, this can also be expanded to cover far broader violations. For companies which undertake production abroad in order to cut costs, investors may be interested in the existence of any exploitative labour practices. For example, any use of child or slave labour or workers working long hours with no breaks
Governance
Governance basically concerns any decision making element of a company and how it is run. This covers things like its leadership, salaries for those in executive roles, audits, and shareholder rights
The ‘G’ component can sometimes be overlooked by those discussing ESG investment. However, it still holds significance, as it concerns all of a company’s policies and internal practices
When looking at companies, investors may ask questions like:
Are they effective decision makers?
Is the company run efficiently?
Does it comply with regulations and laws?
ESG on the rise
Source: Morningstar, February 2021
Sustainable investment is clearly on the rise. More and more, investors are considering these ESG factors. Businesses that are socially conscious and completely transparent about their practices tend to fare better amongst investors
Why are investors considering these factors?
ESG factors enable socially conscientious investors to monitor a company’s ethical standards, meaning their investments can reflect their own morals
In recent years, there has been a movement towards sustainable practices. Investor behaviours have began to mirror this societal trend
By considering ESG criteria in their investment opportunities, investors can reduce investment risks. Companies involved in ethical practices often end up being held accountable for their actions, resulting in huge pay-offs. By vetting a company’s ESG practices, investors can avoid these potential losses. Therefore, considering non-financial factors may have a financial pay-off for investors in the long-run
