HEC MONTRÉAL 

 
 
FINAL EXAM
– INSERTECH –

  
 
Work presented to  
Karl Janelle 
 

 
In course 
Sustainable Development and Environmental Management
DDRS20840 
 

Quentin Winstel – 11271262

 
 
Due Date: April 19, 2023 
Question 1: a) Planned obsolescence.
Insertech is trying to fight technical planned obsolescence. Indeed, the organisation trains
young adults to refurbish products, justifying the technical difficulty of repair. Through the
Réparathons movement, the firm promotes education on programmed obsolescence, raising
awareness among citizens who wish to learn how to repair their electronic devices. Moreover, the
company is trying to force manufacturers to allow for repairability of devices. Furthermore,
Insertech is indirectly fighting psychological planned obsolescence by advocating reuse and
providing a different form of added value over the idea of desire to own something a little newer,
a little better, a little sooner than is necessary.
b) Planetary boundaries.
Firstly, pressure on chemical pollution and the release of novel entities boundary is
reduced by Insertech. Indeed, hazardous materials contained in electronic devices, representing a
danger to human health, are no more sent to landfills by reusing them. In addition, rare metals
from recovered equipment used to prevent the release of 10,281 new devices (Insertech, 2022) do
not require additional refining, and therefore releasing fewer heavy metals into the environment
than the extraction of new materials (GEO, 2022).
Secondly, by choosing refurbishing rather than recycling, the company reduces the pressure, on
the one hand, on climate change boundary because ecosystem quality is less negatively impacted
by human activities thanks to the avoidance of 121.6 tons of CO2 equivalent (Insertech, 2022)
and, on the other hand, on loss of biosphere integrity boundary because greenhouse gas emissions
are significantly reduced.
Finally, land system change boundary is less impacted because Insertech contributes to divert 105
metric tons of technological waste from landfills (Rodrigo-Ilarri, 2022) by reducing the number
of end-of-life products.
c) Greenhouse Gas Emissions
Sources of Greenhouse Gas Emissions Scope Level
Company cars for delivery service. Scope 1
Electricity used by plants for repair, distance support, and computer courses. Scope 2
Construction of the computer store. Scope 3
Extraction of rare metals used in repairing tools. Scope 3
Electricity used to produce repairing tools. Scope 3
 Transport of repairing equipment and devices to be repaired. Scope 3
Travel of employees and participants to activities. Scope 3
Electricity used by repaired devices. Scope 3
End-of-life treatment of sold electronic devices. Scope 3
d) Circular Economy Strategies Employed
To start with, Insertech employs the reconditioning and reuse strategies because it focuses
on the optimal use of resources by selling used or refurbished products such as computers,
knowing that the company has a low impact on resources and the environment are sold by the
company. Indeed, Insertech has reconditioned 7,430 electronic devices in 2020.
The organisation also employs the servicing and repair strategy, by providing electronic device
repair services for computers, cell phones and tablets. Furthermore, because repair can be carried
out by the consumer himself, Insertech also offer technical assistance for in situ and remote
repair.
Finally, Insertech use a giving away and reselling strategy by collecting computers from
companies in the greater Montreal area they no longer need but which are still in good condition.
Question 2: a) Direct and Indirect Stakeholders.

Direct and indirect actors and stakeholders Interests

Find an affordable electronic device linked to

Clients of Insertech social and environmental values and get

knowledge on diversified themes.
Help people with barriers to enter the labor

Insertech market and extend the life of computer

equipment.

Young adults trained by Insertech Be trained for a job to enter the labor market.
Make profits by selling more products using
Producers of technological devices
programmed obsolescence.
Société de Développement Angus, CDEC
Set up and promote initiatives for socio-
Rosemont-Petite-Patrie, Collège de
professional integration of young people
Rosemont, and Commission scolaire de
entering the job market.
Montréal
CIRAIG, AGÉCO, and RECYC-QUÉBEC Report and publish studies to inform society
 on organizational strategies related to
environmental impacts.
Control certified recyclers to guarantee good
ARPE
recycling practices.
Finance activities promoting social and
Caisse d’Économie Solidaire Desjardins
sustainable economy.
Implement laws to reduce negative
Québec government and Ministry of Labour,
externalities on society and collaborate with
Employment and Social Solidarity
organisations to get recommendations.
Monitor organizations and verify their legal
Canada Revenue Agency and Emploi Québec
status.
b) SLO concept
Starting with the strengths, the approach of Insertech in the East End community is
inspiring and original because people are willing to repair their goods by themselves. In terms of
trustworthiness, training and preparing young adults for the job market is a legitimate and
respectable mission. Collective interest is considered by the decrease of waste management costs
impacting the community through reuse of devices. The organization substantially reduces the
effects of technological products on the environment by preventing devices from being sent to
landfills or burnt. In terms of regulations, Insertech meet scientific norms and standards with the
acquisition of the Electronics Reuse and Refurbishment Standard. Finally, a win-win economic
benefit exists by providing affordable products to the community.
However, some weaknesses of Insertech’s approach must be mentioned. In fact, there is no
evidence of a particular respect for tradition, the techniques and products refurbished are
relatively recent. The health aspect can also be questioned because there is always a risk to
employees handling hazardous materials of technological devices, whether due to mishandling or
negligence.
Question 3: Institutional Counter-Productivity
First, the implementation of new functionalities, such as facial recognition, in
smartphones increase the production costs, leading to an increase of the price for new or
reconditioned smartphones through years (NordLittoral, 2023). What is more, use costs are also
rising because each generation of technology requires new infrastructures with a higher cost than
the previous one (Grijpink, 2018), as in the case of the transition from 4G to 5G for our
communication devices.
Concerning environmental externalities, the production and use of a smartphone pollutes air by
emitting about 80 kilograms of CO2 (everphone, 2023). Smartphones are responsible for soil
pollution as well because 720 million of them are thrown away each year, with a significant part
sent into landfills (Blandine, 2021).
The heteronomous system also loses efficiency through specific counter-productivity, knowing
the more technologically advanced the smartphone is, the more difficult it is to repair, the greater
the risk of repair errors. As the supply of the products increase, so does the demand with an
increase of octets used (McKenna, 2021) that may lead to server outages. It is also necessary to
note a dependence to smartphone with an increase of its use (CRÉDOC, 2019).
To finish, paradoxal counter-productivity is noticed by the disappearance of unconventional
knowledge and resources. The capacity to move with a physical map is lost, memory is less used
to remember phone numbers, and the ease of ordering food leads to a loss of the ability to cook.
Question 4: a) Circular Economy Strategies to Implement
First of all, Insertech could use a rental strategy. On the one hand, some young adults
would need a more affordable solution than buying a device. On the other hand, some seniors
may occasionally need a technological tool for a temporary amount of time. This diversification
of Insertech offer is directed to the same clients as now. The implementation is not difficult
because each product offered for sale could also be rented, with a low price per day used.
The company could also develop a collaborative economy strategy. Connecting companies
whishing to sell used devices in good condition with individuals through a web platform could
significantly increase the reuse level of equipment. However, Insertech should ensure the
reliability of its new platform by verifying which companies are allowed to sell their devices. A
maximum price level would be determined to avoid speculation and encourage a high frequency
of trades.
b) Recommendations
Insertech has the full potential to grow: the company is supported by the authorities and
its required materials are easily accessible in almost unlimited quantities. To better meet the
demand for reconditioned technological devices, a first recommendation could be on the rent, if
affordable, of an additional commercial space in a different neighborhood. This would increase
the proximity to groups who would like to take classes, while increasing sales and creating more
jobs.
A second recommendation could be the development of partnerships with public administrations
in the greater Montreal area for the recovery of computer equipment. It should indirectly promote
reuse in the political sphere while allowing to increase the number of reused machines.
Finally, a third recommendation could be a partnership with recyclers specialized in electronic
products. Some electronic components the company replaces cannot be reused or repaired and
need to be recycled to avoid them being burned or thrown in landfills. It will allow Insertech to
continue promoting the same value of reuse for technological parts, while advocating recycling as
a last resort solution. The company could also recover money by selling parts containing rare
metals.
c) Implementation Challenges
With the implementation of a new store, it will be necessary to find new customers to
remain profitable and support the mission. For this reason, studies must be carried out on the
demand for proximity in the potential settlement areas. In addition, the promotion of the new
store launch could be realised on social media, but also in the existing store and events.
In parallel, since specialized recyclers are still rare in the market, it would be possible that none is
found in the Montreal area. Therefore, Insertech could support the installation of a recycling plant
by guaranteeing a quantity of materials to be supplied, but also by proposing locations. The firm
might even be willing to get rid of its materials for free because it does not impact its
profitability.
d) Macro-Limits and Decoupling Debunked Report
Limitations on the recommendations and on Insertech’s model remain. According to
Thermodynamics, reuse is not perfect because, although it extends the lifespan of products, it
does not solve, at their end-of-life, the inevitable generation of toxic waste that cannot be
recirculated. Moreover, there is always an energy loss, limiting the potential of reuse and
recycling.
The company could also experience a rebound effect. Indeed, the attractiveness of the prices of
repaired technological devices encourages the purchase, including people who did not need to
replace their appliances. Insertech is therefore contributing to the increase of electronic products
in circulation, and thus to the increase in energy consumption while reuse should have allowed to
save energy thanks to a reduction in extraction and production of new devices.
Finally, the impact of services may be underestimated because the electricity produced to use
technological appliances could result in greenhouse gas emissions.
To conclude, Insertech does not provide a global solution because it is just shifting the problems
of technological devices by providing only a medium-term solution.
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