Partnering with Johor Special Water (JSW), AirTrunk is building a recycled water supply system for its JHB1 and JHB2 data centre campuses in Johor. The project involves re-purposing unused wastewater and is the largest of its kind in Malaysia to date. It aims to reduce reliance on potable water by providing an alternative source for operational needs.

The initiative includes investments in treatment and supply infrastructure for locally-produced recycled water. Once operational, the system will support cooling and other non-potable uses at AirTrunk’s facilities, helping to contribute to more sustainable water management in the region. The company responds to calls by both the federal and state governments to look into alternative water sources in the face of growing demand.

The recycled water initiative complements broader environmental features at AirTrunk’s Johor facilities, including the liquid cooling system installed at JHB1 in 2024. The design supports energy-efficient operations and is in line with efforts to optimise the use of natural resources.

AirTrunk’s second Johor data centre, JHB2, is currently under development in Iskandar Puteri. The facility will be scalable to over 270MW, increasing the company’s total investment in Malaysia to RM9.7 billion (approximately US$2.2 billion). JHB2 is located in a major availability zone and will be built with a target power usage effectiveness (PUE) of 1.25. Customers will also have access to multiple renewable energy options.

The company’s existing JHB1 also includes onsite solar installations and a virtual power purchase agreement (vPPA) for 30MW of renewable energy under Malaysia’s Corporate Green Power Programme.

To support future energy needs at JHB2, AirTrunk is working with national utility Tenaga Nasional Berhad (TNB) through the Green Lane Pathway for Data Centres initiative. The collaboration is expected to fast-track high-voltage electricity supply and includes a plan for AirTrunk to allocate land for TNB to build a new substation.

Chief Minister of Johor YAB Dato’ Onn Hafiz Ghazi welcomed the partnership with JSW, noting both its environmental and economic contributions. “The initiative addresses environmental concerns and also brings significant economic benefits to the state. It is a testament to the positive impact that public-private partnerships can have on our community,” he said.

JSW is a wholly owned entity under Permodalan Darul Ta’zim (PDT). A spokesperson said, “Collaborating with AirTrunk on this recycled water initiative is a significant milestone for JSW. It reflects our shared vision for sustainable water solutions and demonstrates how innovative thinking can lead to tangible benefits for both industry and the community. At the same time, we highly appreciate IWK’s role in providing treated effluent sources, which has been instrumental in completing this collaboration.”

AirTrunk currently operates 12 data centres in the Asia Pacific region, in Australia, Singapore, Japan, Hong Kong, and Malaysia. Its hyperscale platform now offers nearly 1.8GW of total capacity. In 2023, Blackstone and the Canada Pension Plan Investment Board acquired the company in what became the largest-ever deal to date in the sector, valued at US$16.1 billion.

(Image source: “Data Center” by Bob Mical is licensed under CC BY-NC 2.0.)

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Tesla is designing a cheaper Model Y and enhancing its autonomous-driving capabilities in China as it scrambles to reverse a worldwide sales slide.

The Tesla sales decline has become a challenge for the electric vehicle maker. To combat plummeting market share, the new Model Y variant is planned to be 20% cheaper than existing models.

Once the undisputed leader in the global EV market, Tesla is grappling with consumer backlash against CEO Elon Musk’s political association with the Trump administration and increasingly fierce competition from local rivals in key markets. According to the South China Morning Post, the company’s market share in China has dropped dramatically from more than 16% in 2022 to just 4.3% in February 2025.

Stock market response

The impact has been felt on Wall Street, where Tesla’s stock dropped 15% on Monday, marking its steepest decline in five years. According to TIME, the drop came alongside a stock market plunge following President Donald Trump’s hint at a recession. The president acknowledged Tesla’s struggles in a post on Truth Social, where he blamed “radical left lunatics” for boycotting Musk’s EV company and pledged to “buy a brand new Tesla” himself.

European market struggles

The decline in Tesla sales is particularly pronounced in Europe. According to the European Automobile Manufacturers’ Association (ACEA), Tesla sold just under 7,517 vehicles in Europe in January, half of January 2024 sales. The decline comes despite the rise of overall battery and hybrid electric vehicle sales as the European Union (EU) continues to tighten regulations on emissions from new vehicles.

In February, electric vehicle sales in Germany, the largest market for EVs in the EU, rose 30% year over year, yet Tesla sales were down more than 70% compared to last year. TIME reports that less than 1,500 new Teslas were registered in Germany in February.

Other European countries have also witnessed Tesla’s market share erode. Between January and February of 2025, Tesla recorded a 50% drop in sales in Portugal and 45% in France, according to Reuters, while sales fell 42% in Sweden and by 48% in Norway.

Australian and Chinese markets

The Tesla sales decline includes Australia, where data from the Electric Vehicle Council shows that Tesla sales dropped over 70% compared to last year, with just 1,592 sales in February compared to 5,665 in February 2024, as reported by The Guardian.

In China, Tesla is facing particular challenges. Tesla sales in China dropped 49% in February, with the automaker shipping 30,688 vehicles – the lowest monthly figure since July 2022, according to Bloomberg. Tesla’s market share in the country has plummeted from more than 16% in 2022 to just 4.3% in February 2025, as reported by the South China Morning Post.

Chinese automaker BYD has emerged as a formidable competitor, selling more than 318,000 electric and hybrid cars last month – a 161% increase from last year. In December, sales of Tesla’s Model 3 fell behind those of the SU7, developed by smartphone vendor Xiaomi, by 25,815 to 21,046.

US market challenges & the bright spots amid global decline

Even in Tesla’s home market, the company is facing headwinds. In California – the biggest domestic market for EVs thanks to its state mandate that 35% of new 2026 car models sold must be zero-emissions – Tesla sales slumped for the fifth consecutive quarter, according to data from the California New Car Dealers Association (CNCDA).

However, not every market has seen a similar decline. Britain saw a record number of EV sales in 2024, and Tesla sales were up 20% in February, bucking the global trend.

Musk’s response to global challenges

When Fox Business’s Larry Kudlow asked Musk how he was managing his various businesses amid these challenges, Musk candidly admitted he was doing so “with great difficulty.” Tesla has not officially released a statement addressing its falling sales, but its actions in various markets speak of the company’s recognition of the severity of the situation.

Competition intensifies as price war unfolds

Mainland China is Tesla’s second-largest market worldwide, trailing only the US, and the Shanghai factory is the carmaker’s most extensive production base. However, the company faces increasingly sophisticated competition from local manufacturers offering comparable or superior technology at significantly lower prices. An entry-level edition of Xpeng’s Mona M03, an EV fitted with preliminary autonomous-driving technology, costs 119,800 yuan, just half the price of the Model 3.

The price disparity illustrates the fundamental challenge Tesla faces in markets like China, where domestic manufacturers have rapidly closed the technological gap while maintaining a substantial cost advantage. Chinese brands also employ aggressive pricing strategies that Tesla has struggled to match. According to China Passenger Car Association data, a record 227 models, including electric and petrol cars, had their prices cut in 2024, compared with 148 in 2023. The price war puts additional pressure on Tesla’s margins when the company is already contending with declining sales volumes.

The road ahead: Critical challenges mount

The decline in Tesla sales represents a pivotal moment for the company that once dominated the EV landscape. While Tesla is taking steps to address its challenges – particularly in China with its new lower-priced Model Y and enhanced autonomous capabilities – these moves may be too little, too late as competitors continue to gain momentum.

Tesla’s production problems compound its market challenges. Even as the company unveiled an upgraded Model Y in China in late February, buyers in Shanghai are still waiting for deliveries due to production shortages, according to the South China Morning Post. These operational issues further erode consumer confidence at an important juncture. The reality facing Tesla is stark: its first-mover advantage has largely evaporated, and the company now finds itself in unfamiliar territory – playing defence rather than setting the agenda for the industry.

With EV adoption accelerating globally and Tesla’s share of the growing market shrinking, the company faces existential questions about its positioning and strategy. For a company whose stratospheric valuation was predicated on market dominance and industry leadership, this period of retrenchment signals a fundamental recalibration of Tesla’s prospects.

Whether Musk’s company can regain its footing in an increasingly crowded landscape remains today’s a pressing question in the electric vehicle industry.

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Basic Energy Corporation plans to develop 500 megawatts (MW) of wind and 500 MW of solar energy projects by 2030 as part of its long-term strategy to expand its renewable energy portfolio, according to Vice Chairman and CEO Oscar L. de Venecia, Jr.

Wind and solar projects in the pipeline

Basic Energy is currently working on a 50-MW wind power project in Mabini, Batangas, alongside RDG Wind Energy, a joint venture with Japanese renewable energy developer Renova.

The P5-billion wind farm covers 4,860 hectares and is expected to be completed by 2027. The project will consist of at least 10 wind turbine generators. De Venecia said the company is focused on making the 50 MW project operational first. Once it’s running, the company will assess the wind resource data to determine if expansion is feasible, noting that there is still space along the ridges of the site for potential growth.

In addition to the Mabini project, Basic Energy recently secured exclusive rights to develop the Balayan wind project near the Calatagan peninsula. The project was awarded under a service contract from the Department of Energy (DOE) and is expected to add 168 MW to the Luzon grid’s generation capacity. Basic Energy plans to check wind strength in the area during the pre-development stage and is required to declare the ability to produce a profit in the next five years. If completed, the Balayan project could increase the company’s total wind capacity to around 350-400 MW.

Basic Energy is also advancing plans for a 155-MW onshore wind project between Iloilo and Antique. The project recently received approval and will increase further the company’s renewable energy footprint.

The company is also looking at nearshore wind projects, including facilities providing up to 150 MW in Calatagan, Batangas, and 100 MW in Pasuquin, Ilocos Norte. Combined, the three projects represent an estimated investment of $760 million.

“We will be commencing the wind resource assessment as soon as we have obtained a favourable system impact study from NGCP (National Grid Corp. of the Philippines). Once we have established that connectivity, we will go full swing already with resource assessment,” de Venecia said.

Expanding solar and clean energy infrastructure

Basic Energy’s interests include an increase to its solar generation operations. The company has applied to build two solar projects in Negros and Bataan with a combined capacity of 90 MW. If approved, these would support the company’s goal of balancing wind and solar output to create what it feels is a more stable renewable energy portfolio.

Basic Energy’s investments include clean energy infrastructure. Earlier this year, the company launched an electric vehicle charging station along Edsa. The EV station is part of a broader effort to promote electric transport and reduce emissions in the sector.

Strategic growth in the renewable energy market

Basic Energy’s growing wind and solar portfolio is part of the company’s objective increase its position in renewable energy. De Venecia said the company’s priorities include increasing generation capacity and integrating new technologies. “We want to be a long-term participant in the energy sector. We have been here since the first discovery of oil in the Philippines. We were part of that. Now, things have changed, and people are looking at different [sources] now. We want to be a part of that. As we keep growing, we also want to see where we can participate in bringing newer technologies later on.”

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In northern Virginia, Microsoft is undertaking an unconventional experiment: building data centres with wood. The company uses cross-laminated timber (CLT), a specialised engineered wood product, in a hybrid construction approach alongside steel and concrete. 

The method is projected to reduce the facilities’ carbon footprint by 35% compared to standard steel construction and 65% to typical precast concrete structures. The initiative marks a step in Microsoft’s journey to become carbon-negative by 2030.

CLT, typically made from spruce, pine, or Douglas fir, offers unique advantages over traditional materials. It’s created by glueing together three to nine layers of timber stacked in alternate directions and pressing them into solid panels. 

Unlike steel, which can deform under high temperatures, CLT develops a protective char layer that maintains structural integrity longer. The sustainably harvested CLT will replace substantial portions of the thick concrete traditionally used for flooring and ceilings.

Microsoft rewriting the rules of data centre construction

Microsoft is fundamentally transforming its construction practices in the new requirements. The company is implementing strict low-carbon specifications for materials and equipment in data centre construction. With this shift, Microsoft will require selected high-volume suppliers to use 100% carbon-free electricity by 2030, creating a a positive impact in its supply chain.

Jim Hanna, who leads sustainability for Microsoft’s data centre engineering team, acknowledges the complexity: “We have to be system thinkers across the entire value chain of these materials that go into our data centres and the equipment that supplies [them]. That’s what makes it hard but certainly not impossible.”

Investing in tomorrow’s building materials

Microsoft is backing companies developing sustainable construction technologies through its $1 billion Climate Innovation Fund, which has already committed $761 million. The fund targets innovations that can achieve mainstream adoption by 2030, including:

• Stegra’s green steel plant in Sweden, designed to reduce carbon emissions by up to 95%,
• Boston Metal’s oxygen-generating steel production process,
• Electric Hydrogen’s renewable electricity-powered hydrogen production,
• CarbonCure’s carbon-capturing concrete,
• Prometheus Materials’ microalgae-based zero-carbon cement.

The challenge is substantial—according to the World Economic Forum, steel manufacturing contributes approximately 7% of global carbon emissions, while cement production accounts for about 8%. 

Brandon Middaugh, manager of the Climate Innovation Fund program, emphasises Microsoft’s unique approach: “What’s not so common [sic] is to see an investor like Microsoft come to the table and say I want to both provide you with capital and also sign a contract to buy the output.”

The company’s scale positions it as a catalyst for market transformation. “Microsoft is in a unique position just because they’re so large,” Thomas Hooker from Thornton Tomasetti, the structural engineering firm working on Microsoft’s Virginia data centres, said. “They can almost be […] a market mover and to some extent push some of these technologies to more widespread use.”

While Microsoft has achieved a 6.3% reduction in direct emissions over three years due to data centre growth, indirect emissions have increased by 30.9%. This challenge underscores the importance of innovative construction methods and materials. 

Richard Hage, Microsoft’s global strategy lead for data centre engineering, points to industry-wide momentum: “A lot of our suppliers are on the same journey as we are… implementing key initiatives to lower the embodied carbon of their materials and their products.”

While innovative, the shift to wooden data centres represents just one step in addressing the complex challenge of data centre sustainability. While Microsoft’s supply chain reforms and material investments show promise, the company’s 30.9% increase in indirect emissions highlights the tension between digital infrastructure growth and environmental goals. 

The success of these initiatives will ultimately depend not just on the technical viability of new materials but on Microsoft’s ability to scale these solutions across its rapidly expanding data centre network. As the tech industry grapples with its environmental impact, Microsoft’s experiment with wooden data centres could provide valuable insights into sustainable infrastructure development’s practical challenges and opportunities.

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SOLS Foundation has partnered with Amazon Web Services (AWS) to launch the Technical & Vocational Education and Training (TVET) Academy programme, with the goal of making a significant difference in the lives of students from underprivileged backgrounds.

The programme is intended to offer students in the B40 group (the bottom 40% income bracket) with the skills and knowledge they need to find work, advance in their professions, and achieve middle-class economic stability—something many would struggle to achieve without this kind of support.

What is SOLS Foundation?

For those unfamiliar, SOLS Foundation is a Malaysian non-profit organisation dedicated to providing education and social empowerment to underprivileged populations. The foundation’s mission is to ease the challenges that such individuals face and improve the quality of life in disadvantaged communities by offering sustainable employment opportunities.

SOLS Foundation runs a wide range of programmes, including those focusing on education, mental health, and technology, to help transform individuals’ lives and uplift entire communities.

What AWS brings to the table

The collaboration with AWS in the TVET Academy Programme adds a key layer of technical skills to its services. AWS, which is well-known for its cloud computing capabilities, is expected to contribute cloud computing and technology-related training; crucial in today’s digital-first job market. While the specific details of AWS’s training content for the programme have not yet been revealed, the business normally focuses on cloud infrastructure training, deployment skills, and hands-on experience with its services. These are talents that are becoming increasingly valuable in a variety of industries, particularly as more businesses transition to cloud-based solutions.

However, there is an important question regarding whether the training will be broad enough to prepare students for any cloud platform or if it might encourage vendor lock-in. AWS normally provides accreditation courses for paying customers, which help individuals improve their career prospects by specialising in AWS services. These certificates, such as AWS Certified Solutions Architect, are highly valued in AWS-using industries, but they may restrict students to AWS-specific skills, making it more difficult for graduates to work on alternative platforms such as Google Cloud or Microsoft Azure.

On the other hand, many of the underlying concepts taught in cloud computing—such as cloud architecture, security, data management, and infrastructure deployment—are transferable across platforms. These skills are foundational to cloud technologies in general, meaning that students can apply their knowledge to other platforms, even if the tools and services vary slightly.

To fully benefit from the programme, students may need to supplement their AWS-specific training with general cloud knowledge. This would provide them with a more flexible skill set that could be applied to a variety of cloud environments, expanding their work options.

Preparing students for a digital future

The Ministry of Youth & Sports plays a key role in implementing the initiative. Digital News Asia reported that the programme is created exclusively for final-year students, assisting them in building not only technical skills but job readiness, life skills, and professional competencies. It’s about more than just finding a job; it’s about long-term professional development. The programme also provides job placement assistance, which helps students make a smooth transition from studying to work.

AWS is sponsoring 103 students from three TVET Institutes to complete the seven-month programme. The sponsorship is a significant contribution, focusing on equipping students with the tools and confidence they need for sustainable employment.

SOLS Foundation is enthusiastic about the programme’s potential to positively impact students’ lives. Danutcha Catriona Singh, Managing Director of the SOLS Foundation, emphasised how transformative the programme may be. “We’re committed to transforming lives through education and skill development,” she said.

Throughout the programme, students will receive personalised guidance to help them complete their final projects and obtain the skills they need to enter the job market.

Certification and recognition

Having successfully completed the programme, students are awarded SOLS certificates in their areas of expertise. The official certificates validate the new skills learned and directly enhance employability. Students will be able to present these certificates to employers, demonstrating the abilities they have acquired.

TVET institutions involved in the programme will likely benefit from their students’ success. Students’ ability to obtain certificates in Digital Skills or Professionalism improves the prestige of these institutions. As a result, institutions may see increasing enrollment rates and stronger relationships with businesses that provide students with job opportunities.

The programme provides long-term follow-up, tracking students’ progress for 12 to 18 months after graduation. This offers institutions valuable insights into how effectively their training prepares students for the workforce, enabling them to continuously improve their educational offerings. The long-term data also helps demonstrate the programme’s effectiveness to stakeholders, including students, other interested employers, and funding bodies.

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Electric vehicles have emerged as a significant trend among automotive manufacturers in recent years, especially in largely untapped markets like Southeast Asia. Globally, EV sales have been on an upward trajectory, so much so that by the first three months of 2023, one in every seven cars sold was an EV, Counterpoint Research data shows.

Generally, the market growth of electric vehicles in Southeast Asia has been relatively slow compared to other regions such as Europe, North America, and China. Despite the slower adoption, major automotive players are now recognizing Southeast Asia’s potential, with many promoting adoption and increase production of EVs in the region.

Moreover, Southeast Asian countries have set lofty EV targets and introduced many incentives to promote consumer adoption and attract EV manufacturers to set up bases. Although, as of 2022, sales are tiny compared to global EV sales, constituting just 0.5% of the worldwide total, passenger EV demand is increasing gradually across the region, according to available data.

In terms of countries, Thailand is the most advanced in the number of electric vehicles sold as of 2023, accounting for more than half of the region’s sales, followed by Indonesia and Vietnam. For Thailand, the rise is explicitly attributed to its government pushing EV sales through demand-side and corporate income tax incentives for EV manufacturers.

A recent report by Counterpoint Research indicated that because Tesla slashed prices for its models globally in January 2023, other automotive brands announced similar cuts for their car models starting in February this year, which led to an improvement in the sales of electric vehicles. 

“During February and March, almost 40 automakers, including BYD, NIO, Xpeng, Volkswagen, BMW, Mercedes–Benz, Nissan, Honda, and Toyota, reduced their vehicle prices by a couple of hundred dollars to tens of thousands of dollars, which eventually stoked a competitive price war in China,” research analyst Abhik Mukherjee said in regards to the market dynamics.

While Tesla’s Model Y remained the best-selling model globally, followed by Tesla’s Model 3, the type of electric vehicle topping the chart in Southeast Asia as of 2023 differs. Below is the list of EV brands that have made significant strides in the region as of June 2023.

China’s BYD – dominating SEA with its electric vehicles in 2023

While many Chinese EV companies have been accelerating their overseas expansion, BYD is among the more aggressive ones. The Chinese automotive conglomerate, according to a May 2023 Bloomberg report, announced plans to produce electric vehicles in Vietnam as it prepares to expand operations further and establish a local supply chain to cater to the Southeast Asian market.

Separately, data released by the Land Transport Authority of Singapore shows BYD surpassed Tesla to be the best-selling EV brand in Singapore during the first five months of 2023, registering 303 electric vehicles. For context, the number of electric vehicles registered in the city-state between January to May 2023 was 1,462.

BYD has been the only brand to cut the stranglehold of Japanese automakers in the Southeast Asian region, mainly due to its cheap EV models. The Shenzhen-based carmaker dubbed the largest EV manufacturer in the world, first entered the region through its retail foray into the Thailand market in 2022.

By this year, BYD had announced plans to start construction of its first plant for electric vehicles in the region, in Thailand. “Four million cars are sold in Southeast Asia on average each year, and BYD’s factory will have an annual capacity of 150,000 EVs when it is completed next year (2024),” a South China Morning Post report indicated.

In short, it’s only the beginning of BYD’s dominance in the Southeast Asian region. Still, BYD has dethroned Tesla globally as the world’s largest EV maker, with 1.86 million deliveries in 2022, more than tripling its sales in 2021. For context, Tesla delivered about 1.31 million EVs last year. 

China’s Wuling with the best-selling EV model across the region in 2022

Chinese automobile manufacturer SAIC-GM-Wuling (SGMW), a joint venture between SAIC Motor, General Motors, and Liuzhou Wuling Motors, entered the Southeast Asian market in Indonesia first. Indonesia is Wuling’s first international expansion, with its Air model selling at a mere US$16,000 — less than half the price of alternatives.

By the end of 2022, six months after the launch of the Air model, Wuling already dominated the EV market share in Indonesia by 68.7%, according to the Association of Indonesia Automotive Industries (Gaikindo). Since entering Indonesia last August, it’s sold some 8,000 vehicles as of January 2023. 

“The number may be small compared to the manufacturers’ sales figures in their home turfs of the US and China, but it’s equivalent to 78% of the EV market in the Southeast Asian country,” a blog posting by Wuling reads.

Indeed, based on Counterpoint Research’s data, Wuling’s Air EV was the best-selling model across the region in 2022 – by simply being one of the most affordable EV options. After Indonesia, Wuling Air made its foray into Thailand earlier this month and immediately became the cheapest EV in the country, dethroning the Neta V.

“This marks the region’s second market for Wuling Air, following its successful launch in Indonesia. Interestingly, the Wuling Air is also manufactured in Indonesia, and the initial batch of 400 units in Thailand has been fully imported from there (CBU),” a Carlist article reads.

Vinfast – 2023, the year of its electric vehicles in SEA?

VinFast, a member of Vingroup – the largest private corporation in Vietnam, is almost everywhere but hardly in Southeast Asia. The EV maker chose to kick start its journey out of Vietnam with sales in North America and Europe first. Yet by 2022, despite only being in Vietnam, in terms of automotive groups, Vingroup will lead the Southeast Asian EV sales, closely followed by Wuling, Counterpoint’s data shows.

But during the Future Mobility Asia 2023, VinFast announced it would be ready to throttle into the Asian market fully. Aside from that region, the Vietnamese car market is also looking at China and South Korea. “Expanding to the Southeast Asia region is part of VinFast’s global development strategy. We have set a target to provide ASEAN countries with smart and safe mobility solutions,” said Le Thi Thu Thuy, Vice Chairman of Vingroup and VinFast.

To recall, it was only in 2021 that VinFast launched its first EV for the Vietnamese market, the e34 compact crossover. Global expansion began in 2022 when VinFast opened showrooms in the US, Canada, and Europe and became the world’s first global Vietnamese EV company. 

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The conversation on what circular economy is and why it matters in a sustainability journey has been ongoing since governments and companies worldwide started pledging to achieve net-zero emissions of greenhouse gasses no later than 2050. In fact, more businesses today are actively shifting from a linear “take, make, waste” economy to a circular “reduce, reuse, recycle” one.

Take the world’s largest distributor of personal computers (PCs), Lenovo, for instance. Throughout the years, the global technology powerhouse has expanded its product and service lines and increased its participation in the circular economy. 

“The economic advantages of employing a circular model in the E&E sector could be enormous. A circular economic model in IT could reduce costs for consumers by 7% in 2030 and 14% by 2040,” Lenovo said in a whitepaper.

First, what is a circular economy?

The circular economy is one of the hottest topics in sustainability today. According to the Circularity Gap Report 2023, rising material extraction has shrunk global circularity: from 9.1% in 2018 to 8.6% in 2020 and now 7.2% in 2023. That leaves a vast circularity gap – meaning more than 93% of materials are wasted, lost, or unavailable for reuse for years. 

To bring human activity back within the safe limits of the planet, the report estimates that we would need to reduce global material extraction and consumption by one-third. That is when the circular economy comes into play. It is a system of producing and consuming products in which resources are kept within the ecosystem to prevent or significantly reduce waste. 

As such, the circular economy is a production and consumption model involving sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products as long as possible.

How is Lenovo contributing to the circular economy?

Lenovo’s vision to deliver smarter technology for all extends to its circular economy practices, including smarter circular design, circular use, and circular return activities. That means that during the design phase, important decisions are made to help improve circularity, whereby the company continuously evaluates design decisions that can help reduce environmental impact. 

“At Lenovo, we think about sustainability in terms of ESG, especially in the last five years. In the environmental space, we’re focused on climate change and the circular economy. From a climate change perspective, it’s our operations and the impact of our value chain. The circular economy especially is a big focus – making sure our products can be repaired and kept in service for a long time,” Mary Jacques, executive director of global ESG and regulatory compliance at Lenovo, told Tech Wire Asia.

Jacques shared how new recycled materials are constantly researched and introduced into Lenovo’s products. “We continue to incorporate post-industrial recycled content (PIC) plastics, post-consumer recycled content (PCC) plastics, and closed-loop post-consumer recycled content plastics (CL PCC) to introduce new materials such as ocean-bound plastics (OBP) and recycled metals.”

Lenovo has been using recycled plastics in products since 2008 and is on track to employ over 136 million kilograms of PCC plastic by FY 2025/26. “We now manufacture 248 products that include closed-loop recycled plastic,” Jacques shared. At the same time, Lenovo has also been increasing its use of recycled fiber, recycled plastic, and sustainable materials in packaging, including bamboo, sugarcane, and sustainably forested fiber. 

“We have a goal that by FY 2025/26, 90% of plastic packaging will be made from recycled plastics for notebook computers, desktop computers, and workstation computers. Additional goals for smartphone product packaging include 60% of the materials will be recycled content, and single-use plastics will be reduced by 50% by FY 2025/26,” Jacques said.

She also shared first-hand how Lenovo’s focus on repairability and durability contributes to the prolonged life cycles of refurbished and reused systems, creating opportunities throughout the circular value chain. Specifically, the goal is that by FY 2025/26, 84% of repairs can be done at the customer site without having to send their PC to a service center. The company is also keeping repairable parts in use longer and has a goal that by FY 2025/26, at least 76% of repairable parts will be repaired for future use. 

What sort of partnership is involved in Lenovo’s circular economy?

Lenovo’s circular value chain involves partnerships at every phase, according to Jacques. “In the design phase, we must partner with materials suppliers for our products and packaging sourced from recycled materials or used IT equipment. Then there’s the use phase, where we partner with our customers to ensure that we understand their needs regarding services and repairing the products.”

At the end of a product’s life, since Lenovo is not a recycler, Jacques shared that they would connect customers to responsible recycling in a way that helps extract the most value out of the products at the end of life. “And so throughout that whole circle, there are critical partnerships we must have because we can’t do it all on our own,” she concluded.

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The ThinkPad debuted in 1992, at which time the ThinkPad 700 was the first real portable computing product. Though it began life at IBM, by 2005, Lenovo bought the PC business and continued to evolve the line. More than three decades later, Lenovo stands as the world’s largest PC vendor, and its ThinkPad stands out in the crowded market – with a myriad of series ranging from the famous X1 line to the Yoga Series.

The ThinkPad has especially gained severe traction in enterprise sales. As of 2022, on its 30th anniversary, there have been 200 million units of ThinkPads sold, according to Lenovo. “ThinkPad is a successful design that stands the test of time,” Jerry Paradise, Vice President of Global Commercial & Product Management at Lenovo IDG, wrote in a blog post last year.

As one of the oldest commercial laptop brands in the world, ThinkPad’s iconic design, with its charcoal tone and discrete sections optimized for various computing tasks, came from a Japanese Bento box – a square container with multiple mini-boxes inside to hold different types of food. 

The Bento box concept of portable computing changed the world, illustrating how spatial design principles could map onto industrial enhancements that have yielded successively thinner, lighter, and less power-hungry devices. Each Lenovo product goes through years of arduous conceptualization, research, design, sourcing of raw materials, and manufacturing before it becomes a tangible innovation.

Lenovo has also been stretching the limits of innovation for an ethical and sustainable digital future — revolutionizing modern technology as a sustainability enabler, contrary to old-school notions. Recently, Tech Wire Asia spoke with Lenovo’s Senior Story Technologist, Kevin Beck, at the company’s US headquarters in Raleigh, North Carolina.

Besides touching on the history and future of the ThinkPad, Beck shared how sustainability has and will continue to play a crucial role, and how the fundamental design of a laptop might change in the years to come.

TWA: Why don’t you share with our readers the role you play in Lenovo?

I work in our communications department for our Intelligent Devices Group (IDG), which is everything Lenovo does except servers and services. My role as a story technologist combines working with our engineers and engineering teams to find out the reasons, the whys, and how we do it. That includes what problems we solve – and then I will travel around the world and tell that story on behalf of Lenovo. That is also why I am interested in how a plan eventually becomes the end product.

TWA: Lenovo recently launched the second generation of its ThinkPad X1 Fold. What sets it apart, and how did sustainability play a role in the product design?

One of the things that we look into is if we will be able to make a product that meets the technological needs of the market. Then we will have to look if it meets the overall goals of the company’s circular economy, like making the product repairable using recycled materials that are factored in from the very start of the design process. 

The first generation of Lenovo X1 was the first foldable PC in the world. Honestly, our team did an excellent job at making it as repairable as they possibly could, given the constraints of the technology at that time. They have managed to make it so easy for our users to replace their storage if they need to upgrade it. 

The reality back then, considering how new the technology was, was that it was less repairable than we wanted. So when we started designing the second generation, the team took a tough look at what we could do. Things like the assemblies and hinges were made simpler to install and replace. 

Another simple example is the outer covers; they’re a nice, ballistic nylon-coated cover that sits inside the metal frame to protect the finish and contribute to the overall stability and rigidity. But being recessed like that, down below a metal frame, shows that one of the big worries is how repairable our products are. 

Even the look and feel of the laptop changed. The original model came with a metal chassis that was then covered by a leather cover wrapped around the device’s exterior. Because of its dimensions and the way hinges work, the leather couldn’t cover the entire exterior when the laptop was folded, and there was a “lip” on the front. Now, Lenovo has opted for a woven fabric cover, and instead of a single piece, each half of the laptop has its fabric cover, surrounded by a thicker metal frame near the hinge.

As the requirements evolve, so will the time taken to design it and the cost. But if we do it right and make it more durable than the generation before, then the repairability costs go down throughout the product’s lifecycle. So, did it cost a little more to make the newer generation? Absolutely, yes. But there are always ways to keep it sustainable in both environmental and business perspectives – by using the extra cost to add more value to our products.

TWA: Does sustainability sell, or must you persuade customers that it’s a good thing? 

I’ll preface this by saying I’m not in sales. So I can’t attribute anything directly in terms of products sold. We will only introduce something if we study whether it’s acceptable to the market. But from our studies, everything I have seen shows the advances we’ve made in using recycled materials in our laptops, or in our ThinkPads, specifically with the flaxseed-based covers, have gained good public interest. It has been overwhelmingly positive. 

It is a change; sometimes, it is part of my job to take the time and take the extra steps to explain why we did what we did. Why flaxseed? We’ve been doing carbon fiber, which is loose fiber, in its raw form. And we spent many years learning how to stack it up with the adhesives in the manufacturing process. Now, we use a similar approach for flax, with different layers. 

The key to our process on products is that we can credibly and genuinely tell customers that using a particular material (be it flaxseed or carbon fiber) will not impact the reliability, durability, or usability of our products.

TWA: How do you see ThinkPad evolving over the coming years with Lenovo? How much will it remain the same, and what will evolve with time?

That is an interesting question. Let me go back to the beginning. When the team was designing or coming up with the design for the very first ThinkPad, which launched in 1992, they made a specific decision that they wanted something to be a design, touchstone, a design inspiration, something always to refer to which many today know of, a Japanese bento box. 

So that core has stayed the same, but if you look at the designs over time, they are thinner, lighter, stronger, and faster. Now, we’ve evolved to ThinkPad z13 with a flax cover and different colored metal accents. That means we adapt and change, but the design language (the Bento Box) will always be part of ThinkPad’s heritage. 

If you look at what we’ve put out in the market in the last five years, the form factors, the folding, and all the different materials, finishes, textures, and colors – you would notice how some of it will always remain the same, and some factors will change with time. The senior engineer, or the father of the ThinkPad, Arimasa Naito, once told me, “Kevin, there will never be a ThinkPad that’s zero millimeters thick.”

Things will get a little thinner and lighter, but the most significant change may be something people won’t necessarily see: the use of recycled materials. This past year alone, Lenovo has significantly increased the number of recycled metals and plastics used. But that evolution takes time because we don’t want to do it wrong. 

Even recycled plastic’s physical characteristics and durability are sometimes different. But with the proper methodology, suppliers, and the urge to continue improving, the single most significant change will undoubtedly make our products better and more sustainable in the long term.

The post Lenovo: the evolution of ThinkPad in the era of sustainability appeared first on TechWire Asia.

The Semiconductor Climate Consortium was formed in 2022 by SEMI, the industry association serving the global electronics manufacturing and design supply chain, and companies across the industry value chain to deal with a huge problem – a booming carbon footprint. Decarbonizing the semiconductor industry will be a big challenge. The industry presents a paradox as there will a need for more semiconductors to enable technologies that address the climate crisis, from electric vehicles to solar arrays or even wind turbines.

Even the most basic chip manufacturing contributes to the climate crisis because it requires enormous energy and water. An article by The Guardian explains how a chip fabrication plant, or fab, can use millions of gallons of water daily–creating hazardous waste. Take Taiwan Semiconductor Manufacturing Company, the world’s largest chipmaker, for instance. The Taiwanese chipmaker, which supplies chips to Apple, pledged to reach net zero emissions by 2050. TSMC uses nearly 5% of all Taiwan’s electricity, according to figures from Greenpeace, and it used about 63m tons of water in 2019.

This is why the Semiconductor Climate Consortium, which is also the first international collaboration between semiconductor companies focused on reducing greenhouse gas emissions across the value chain, consists of more than 70 semiconductor companies, including TSMC, Intel, and Samsung.

The consortium, with Schneider Electric as a founding member, supports the Paris Climate Agreement and efforts to limit the increase in global temperatures by 1.5 degrees Celsius. The collaboration will see Schneider pool resources with other industry players and align to develop decarbonization solutions together.

During SEMICON Southeast Asia (SEA) 2023 last month, Tech Wire Asia had the chance to speak with Dallal Slimani, Vice President of Semiconductor and Electrical Vehicle Battery at Schneider Electric, who shared the progress of sustainability in the semiconductor industry. TWA last spoke to Slimani in 2022, before the formation of the consortium.

TWA: Can you update us on the Semiconductor Climate Consortium and its progress at this point?

The consortium comprises members that address the whole value chain. We have design companies, front end, back end, and people who are part of the ecosystem, including those from the tech industry and semiconductor industry customers. These are the group of people and companies coming together to tackle the decarbonization challenge that the industry is facing through the whole value chain.

The consortium has different working groups addressing various topics in scopes one, two, and three. The idea is to come up with methodologies using the tools and solutions while focusing on each of these working groups to drive decarbonization within the industry.

There is some level of standardization that we will see around different solutions, which is why the industry is coming together to drive meaningful change. We also will be looking at how to leverage technology and how to partner with other ecosystems in order here also to bring solutions to the table when it comes to decarbonization.

Different elements and topics are linked to awareness of the industry’s carbon footprint. I believe we can do much more there, but our working groups are devising specific solutions that the industry can adopt to decarbonize. So as the consortium takes shape with time, there will be more to unfold.

TWA: What sort of barriers should manufacturers overcome in terms of adopting more sustainable measures?

There are many barriers that the semiconductor industry and multiple industries face when it comes to going through this sustainability decarbonization journey. First, we can look at where the sustainability discussion is happening. Is it happening at the C-suite, or is it happening lower in the organization? Sustainability needs to be one hot topic in the C suite.

There should also be a sustainability strategy that is fully embedded in the business strategy. The second is based on our experience with our customers and partners, which is a lack of awareness and lack of internal competency inside companies to drive sustainability. Most of the time, companies need help figuring out where to start. Working with a partner with the technical skills and knowledge that can also guide you through the decarbonization journey is essential.

TWA: As the node size of chips continues to shrink, energy requirements at production facilities are expected to rise significantly. How can companies ensure fabs achieve substantial emissions reductions and accelerate decarbonization amidst all the progress?

That is why it is crucial to act now. If we don’t do anything, the projection is that the CO2 footprint will increase dramatically between now and 2030 and beyond. We can work on different levels, with the first one being the renewable energy option. There’s also how equipment manufacturers, chip designers, and chip manufacturers can come together to design more sustainable processes

TWA: Do you think net zero by 2050 is too ambitious?

What I can tell you is that this is an imperative. This is the decade to act if we want to have a shot at having a sustainable life by 2050. Not one single company can do it together; we need to all work together to collaborate, and we need to leverage technology. The consortium is an excellent example of how the industry is coming together.

I can say that the technology already exists today. We can implement many things today, from leveraging digital and other solutions that will allow us to decarbonize.

Watch the full interview with Slimani here.

The post The Semiconductor Climate Consortium’s timely goals appeared first on TechWire Asia.

With more and more countries committing to tackling climate change, it is evident that hitting sustainability targets are top of mind for many businesses. Whether this means reducing overall environmental impact or exploring new ways for sustainable development, businesses need to make environmental protection a top priority. However, only those who take definitive action and have clear metrics can help move the needle. Though one may not readily associate rugged technology with environmental protection, it plays an important role in helping organizations work more efficiently toward meeting their sustainability goals.

Supporting environmental research in the field

Being able to work in a challenging environment is critical for those working and conducting environmental research in the field, rugged devices, such as laptops and tablets, with high adaptability and the ability to withstand inclement weather, extreme temperatures and hostile conditions are essential. Many businesses operating in remote and challenging work environments require rugged solutions with long battery life and stable connectivity to strengthen their usefulness in time-consuming projects.

Studying the hearing systems of marine mammals calls for highly specialized equipment that can stand up to extreme conditions at sea. Given the nature of their work, the National Marine Mammal Foundation recognized the need to equip their teams with a rugged and dependable mobile computing solution. With the support of rugged devices, their team was able to focus on the core of their work, studying the impact of ocean noise on their subjects directly in their natural habitat.

Similarly, we have witnessed the success of rugged technology in its ability to help assess the effects of land use on nature. As one of the largest open research platforms in Europe, Biodiversity Exploratories studies biodiversity on farmed plots of forest and grassland. By adopting rugged tablets equipped with specialized software, extended durability and connectivity, researchers were able to conduct an inventory of around 35,000 trees within the freezing, humid winter research period.

Improving efficiency in minimizing environmental impact

While long distances for industrial vehicles often translate to high diesel consumption and excessive tire wear, Italy-based company Pesci Attrezzature was able to utilize ruggedized solutions to prioritize vehicle safety and correct axle alignment for trucks. Correct alignment means reducing fuel consumption and tire wear, which helps minimize overall carbon dioxide emissions and fine dust particles generated by the breakdown of tires, allowing a traditional industry to embark on a sustainable journey.

Exploring new possibilities for sustainable development

It is no secret that technology plays an important role in shaping the sustainability agenda, however, it also demonstrates how the right rugged technology can help generate new ideas for sustainable developments. A great example is 4×4 Electric, a fully electric, self-sufficient car expedition from the Netherlands to South Africa and back. With a rugged computing solution integrated within the car, which demonstrates the power of sustainable technology and enables more to explore new possibilities in creating a greener tomorrow.

Sustainability initiatives and strategies are crucial for companies to reduce their environmental impact and become socially responsible. However, having the right rugged technology is equally important in driving success. This calls for rugged solutions – devices, software, accessories, and support services – to enable more efficient and sustainable practices while meeting business goals.

The views in this article are those of the author and may not reflect the views of Tech Wire Asia. 

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