It's time for the white goods industry to get serious about cutting emissions
We've built a world reliant on our products, yet each appliance sold casts a long, chilling shadow.
For decades, our sector has prioritized incremental efficiency gains, touting progress while sidestepping the real elephant in the room – our products' lifetime carbon impact. The result? A sector that contributes to the climate crisis, with residential appliances responsible for 15% of global carbon emissions, according to research by CLASP.
The industry's primary focus has been on Scope 1 and Scope 2 reductions. We have made tremendous progress in this area by transitioning to renewable energy systems, upgrading to energy-efficient machinery, prioritizing sustainable sourcing from suppliers who use recycled or renewable materials, and incorporating recycled materials into our manufacturing processes. These efforts have led to measurable impact in our industry – between 2011 and 2022, waste generation fell by an additional 6%, while energy consumption dropped by 18%.
Decarbonizing manufacturing plants, though laudable, is akin to treating a superficial symptom while ignoring the underlying disease. It addresses a minuscule fraction of the problem – a mere 2% of our emissions footprint. The real monster lurks within Scope 3: the environmental carnage wrought by our products throughout their lifecycles. Imagine this: 98% of our impact stems from how our appliances are used, not how they're made. The ultimate challenge – the one that demands bold action – is designing products that consume dramatically less energy over their lifetime.
Fortunately, some in our sector have dared to look beyond the obvious by embracing the challenge of Scope 3, not as a regulatory burden, but as a strategic imperative. Over the past 20 years, the energy consumption of home appliances has dropped by 50%, with a fridge today consuming one-fourth of what it once did. This progress proves that efficiency gains are not only possible but transformative. In our case, our energy-efficient appliances drive the majority of our revenue. Beyond the environmental impact, it’s a smart business strategy.
Research shows us that the market is increasingly populated by environmentally conscious consumers who are actively seeking out more efficient products. While affordability and accessibility remain barriers, the development of technology and business models aimed at reducing Scope 3 emissions presents a compelling business case, offering a dual benefit of environmental stewardship and economic growth. Companies that fail to adapt will be left behind.
These are aspects which are often addressed through smart regulation, but adoption of such norms is not equally spread across the world. While over 100 countries have adopted Minimum Energy Performance Standards (MEPS) which set out performance requirements to encourage the production of more energy-efficient products, many others still lag behind, particularly in emerging economies where appliance use is growing rapidly.
The industry’s drive towards greater efficiency also risks overlooking another massive issue: the lifespan and limited recyclability of appliances. The average household appliance lasts 10 to 15 years, yet very few are fully recyclable, and most end up as e-waste.
The United Nations estimates that a staggering 83% of the 53.6 million metric tonnes of e-waste generated annually is not recycled or reused. This is unacceptable. We need to create circular economies where discarded appliances become valuable resources, not environmental liabilities.
The solution is threefold. First, better energy efficiency is needed to reduce global energy consumption. Collectively, air conditioners, refrigerators, electric motors and lighting account for a staggering 40% of global electricity demand, resulting in over 5 gigatons of CO2 emissions each year, according to the International Energy Agency. This magnitude of emissions is comparable to the entire annual output of the United States. And with global electricity demand expected to increase at the fastest pace (growing at close to 4%) out to 2027, the role energy efficiency, the low-hanging fruit, can play has never been more important. As a leading global manufacturer with scale and expertise, Beko is uniquely positioned to spearhead this effort and drive meaningful change within the industry.
Second, we must push for a new standard in product sustainability, focusing on durability, repairability and recyclability. Improving product life through better design and circularity practices isn’t just good for the planet, it’s good business. Consumers increasingly seek appliances that offer clear pathways for repair and recycling at the end of life.
Finally, the industry cannot act alone. Governments must implement stricter regulations, incentivize higher efficiency and repairability standards, enforce compliance and invest in accessible recycling infrastructure. A world where appliances are both ultra-efficient and fully recyclable is within reach, but only if manufacturers and policymakers work together to make it happen.
The appliance sector has a once-in-a-generation opportunity to lead the fight against climate change. Within this crisis lies an opportunity for redemption. The technology exists. The consumer demand is growing. The only missing ingredient is our collective willingness to act with urgency. The question is no longer whether we should change, it’s whether we will rise to the occasion before it’s too late.
Original source: Reuters
