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EDE was created by Green Grid to help organizations asses their disposal processes for electronic equipment. To calculate EDE, the total weight of the equipment that's being disposed of in a responsible way (such as through reuse or recycling) is divided by the total weight of all discarded equipment.
There are a range of options that Green Grid considers responsible, but most involve sending the electronic waste to an organization/entity that is certified and authorized to recycle or dispose of it properly.