A joint studyby MIT Sloan and Boston Consulting Group revealed a striking contradiction: while 90% of executives believe that sustainability is critical to success, only 60% of companies actually incorporate it into their long-term business strategy.
This gap reveals how difficult it can be to push environmental priorities into the boardroom and beyond. Yet, those who do embrace sustainability see powerful returns—not just for the planet, but also in profits, talent retention, and resilience.
At Component Sense, we champion the UN Sustainable Development Goals and know the advantages of circularity firsthand.
Here are 10 reasons why electronic manufacturers should prioritise sustainability now.
1. Boost Brand Reputation and Consumer Trust
In the age of conscious consumerism, brand image is shaped by how eco-friendly your practices are. The United Nations COP28 (Conference of the Parties) summit—one of the most widely attended global climate events—made it abundantly clear that customers, investors, and governments expect action.
Recent surveys show that 81% of global consumers believe companies have a responsibility to help improve the environment. When you prioritise sustainability, you’re not just reducing environmental impact—you’re building trust with your audience. People are more inclined to buy from brands they perceive as authentic, transparent, and responsible.
2. Improve Supply Chain Resilience
A resilient, future-ready supply chain starts with sustainability. Environmental disruptions are becoming more frequent due to climate change, with direct consequences on production and logistics.
Looking after natural resources is not just a selfless act to benefit future generations; it can prevent environmental-related business disruptions here and now. In 2021, Taiwan experienced its worst drought in 56 years. TSMC (Taiwan Semiconductor Manufacturing Co Ltd) uses more than 8.9 million gallons of water daily to operate a single fab (fabrication plant). It is estimated that the company spent over $25 million on water trucks to remain in operation that year.
Studies describe a close link between rising global temperatures and severe weather events, including droughts and storms. The drought in Taiwan is just one example of weather-related supply chain disruptions. Since 90% of a company’s impact on the environment comes from the supply chain, pivoting to a circular business model can interrupt this feedback loop.
3. Attract Environmentally-Conscious Investors
In today’s market, sustainability is no longer just a CSR checkbox—it’s an investment strategy, and it does not need to come at the cost of profit. Sustainable companies increasingly attract ESG (Environmental, Social, and Governance) investors who seek to fund positive change.
Other investors you could hope to attract include:
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Impact investors, who want to solve social or environmental problems through capital
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Activist investors, who influence policy and operational changes in existing companies
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Sustainable investors, who focus on low-carbon businesses committed to fighting climate change
4. Reducing Operational Costs and Waste
According to a McKinsey report, environmental strategies can increase by up to 60%.
Why? Because circular business models cut waste, reduce material usage, and optimise energy consumption. Manufacturers that embrace sustainability strategies can:
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Lower energy bills with renewable sources
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Minimise disposal fees through better e-waste management
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Reduce overproduction and overstock by improving inventory visibility
5. Win Over Top Talent Through Purpose
More employees are making job decisions based on a company’s values. In fact, “climate quitting”—where professionals leave roles at unsustainable companies for greener employers—is on the rise.
According to HRreview, 42% of workers would take a lower-paying job at a company with stronger sustainability credentials. This trend is particularly strong among Gen Z and Millennials.
At Component Sense, we’ve seen this firsthand. Team members are proud to work for a company actively reducing e-waste and promoting circularity.
“Working within a company devoted to sustainable practices transcends mere occupation. It enables me to integrate my personal values into the work that I do, with the planet's well-being bringing a greater purpose to my life. My work really embodies what it means to champion our beautiful Earth,” said Kris Ward, Component Sense Account Manager.
6. Stay Ahead of Local Regulations
Even before COP28, measures were implemented to encourage electronic manufacturers to reduce their environmental impact. An example of such rules and frameworks is the Sustainable Finance Disclosure Regulation (SFDR). The EU outlined how those participating in the financial market must disclose their sustainability efforts.
The SFDR aims to encourage environmentally driven private investors to help the EU transition to a net zero economy. By prioritising sustainability across your supply chain, you stay compliant and could capitalise from such incentives.
7. Attracting new business partnership opportunities
As well as attracting top industry talent, leading a sustainable supply chain can allure other businesses. By partnering with like-minded companies with a proven corporate social responsibility record, both parties can increase brand perception and often profit.
As end consumers look to impact the environment positively with their wallets, they opt to pay for ethically made electronics. OEMs (original equipment manufacturers) and EMSs (electronics manufacturing services) should stipulate working with chipmakers that only ethically source rare earth elements to accommodate consumer habits.
8. Inspiring change in the industry
As the saying goes, be the change you want to see in the world. A circular electronics industry benefits the globe. If you want to inspire other electronic manufacturers to make environmentally-driven changes, it is essential to talk about your own experiences.
Share your wins, talk about your challenges, and educate others with your ideas. Utilising your company’s blog (just like we are now) can be a great place to start.
9. Driving innovation
As anyone working in the electronics industry for over a few years would know, innovation is essential to stay competitive. A report from ZipDo found businesses that prioritise innovation grow at a 16% higher rate than those that do not.
Sustainability can be a fantastic driver of innovation, as decreasing carbon footprint and reducing reliance on finite resources requires thinking outside the box. This kind of forward-thinking can be valuable to come up with ideas that stand out in a cluttered market.
10. Increased productivity
Employees who are engaged are often far more productive. The challenge lies in understanding the key motivators to maximise staff performance. Of course, money is highly valued by nearly everyone. But the second motivator, especially in young people, could be sustainability.
A study by HRreview found that 42% of workers would take a job that pays less as long as the company had greater corporate responsibility. For electronic manufacturers, greater productivity means a higher output. Ignoring circularity could be a costly mistake if sustainable practices are proven to motivate employees.
Begin your journey for sustainable business practices
There are many areas of the supply chain to consider when making changes in the name of sustainability. Taking control of your excess and obsolete (E&O) component stock is an easy place to start.
Thanks to our partnership with global logistics company DSV, Component Sense can consign and redistribute your E&O inventory while keeping stock local. This approach means you can get parts back quickly if needed, and it also reduces pollution from unnecessary shipping. Read more in our blog.