Business Competitiveness for Surviving EcoDesign Globalization

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Business Competitiveness for Surviving
Eco-Design Globalization
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Eco-Conscious Globalization
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Green Procurement A Chaining Mechanism
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Latest Issues of Corporate Eco-Management
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A Letter from a Global Company
Dear Supplier the European End-of-Life-Vehicles
(ELV) Directive 2000/53 has been entered into
force on October 21st, 2000. Because we do
business on a worldwide basis this letter has
global implications. One important requirement
of this directive is the Heavy Metal Ban. The
prohibition of Lead, Cadmium, Mercury and
Hexavalent Chromium applies to all materials and
components of vehicles put on the market after
July 1st, 2003. To make sure that both the
materials and components of a vehicle contain
none of the above named heavy metals, except in
the exceptions listed in Annex II of the
Directive, it is essential to have a precise
knowledge of the composition of the components.
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ELV(End of Life Vehicle) Directive in Europe

• Has been applied to all the vehicles put on the
  market in Europe since July 1st 2003
• (put into
  force 2000)
• Restricted Heavy metals are Hg, Pb, Cr(VI), Cd
• Unintentional use allowable concentration
• - Lead, mercury, hexavalent chromium 0.1wt
• - Cadmium 0.01wt
• Applied to All the component and materials of
  vehicles (some exempt in AnnexII)

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Exempt List of ELV Directive (1)
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Exempt List of ELV Directive (2)
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Exempt List of ELV Directive (3)
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Exempt List of ELV Directive (4)
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EU Directive on EEE
EEE (Electrical and Electronic Equipment)
Directive concerning environmental impact of EEE
gtgt Design Concerns gtgt
WEEE (Waste Electrical and Electronic Equipment)
Directive concerning disposal and recycle of EEE
gtgt End of Life Concerns gtgt
RoHS (Restriction of the Use of Certain
Hazardous Substances in Electrical and
Electronic Equipment)
Heavy Metal Ban gtgt Constituent
of EEE materials gtgt
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RoHS Directive
Restriction of the Use of the Certain Hazardous
Substances
Applied to all the EEE put on the marked after
July 1, 2006. (Some are exempted) Including
Household appliances, IT and Telecom Equip.,
Audio, Lighting, Power tool, Toy,
etc., Restricted Substances are Hg, Pb, Cr(VI),
Cd, and PBB, PBDE Put into force on Feb 2003

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Process of Making Directive Regulation in EU
Regulation Directly applied to all EU Directive
Executed through institution of domestic laws
in each member nations. Some
flexibility allowed in
details.
Council (Ministers)
Commission (Ministry, Agency) only having
the right to propose
In effect
Deliberate
Parliament
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Legislation in Individual Nations
Holland
Denmark
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Sony Shock
Sony swaps PlayStation One cables By Reuters
December 5, 2001, 1155 AM PTSony is replacing
peripheral cables for 1.3 million PlayStation One
game consoles after the Dutch government blocked
sales of the machines because of health and
environmental concerns. The Dutch government said
Tuesday it had blocked shipment of the consoles
and 800,000 accessories bound for the European
Union market in a warehouse in the Netherlands
because the cables contained too much cadmium.
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Newer Approach
REACH Regulation (Registration Evaluation,
Authorization of Chemicals)
A new framework of Toxic Substance Control in
Europefeaturing risk assessment obligation of
not only chemical production but also chemical
downstream users. A huge impact on EU economy is
anticipated.
Eco-design Directive (still draft in Commission)
Requirements for so called "Eco-products". A
large impact like ELV and RoHS will likely to
arise.
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About REACH Regulation
Registration, Evaluation and Authorization of
Chemicals
Manufacturer/Importers of chemicals with volume
of 1 ton/year are obliged to register (1)product
ion volume, (2)properties, (3)estimated exposure
in each usage, (3)labeling, (4)MSDS, (5)risk
assessment results Obligation shifted from
government to industries. Downstream users have
an obligation to conduct (3) and (6) regarding
unintended useof chemicals.
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Anticipated Impact of REACH
Investigation by Chemical Industries, EPA, and
Ministry of Economy (1) Cost of the risk
assessment 50,000 to 1M euros. (2) Chemicals to
be assessed 30,000 substances (3) Impact -
Weakened industrial competitiveness - Economic
loss of 29 Billion to 54 Billion euros - Job
losses of 360,000 to 670,000 people in France
German Confederation of Industry Maximum
2,350,000 job losses anticipated
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Responses to REACH (1)
(1) The commission published the first draft on
May 7, 2003 (2) Open to public comments until
July 10 (3) Final draft will come out soon
(1) Japanese industrial associations made a
joint task force to cope with REACH -
Since June 3 - Weekly meeting with 35
members (3) Found problems, organized comments,
and submitted to EU on July 10
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Responses to REACH (2)
2003.7.10 Summary of the submitted public comment
1. Problematic financial burden-share by industry
alone. 2. WTO-TBT(Technical Barriers to Trade)
violation suspected. 3. Articles controlled by
WEEERoHS should be exempted. 4. Risk Assessment
is not likely to be performed fairly among
obligated companies. 5. Should be compatible
with existing international frameworks. 6. Risk
assessment obligation of down stream users should
be limited to the cases where the new risk is
apparently concerned.
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About EuP (Eco-Design Directive)
Proposal for a DIRECTIVE on establishing a
framework for the setting of Eco-design
requirements for Energy Using Products
Requiring an ecological profile for each
product by evaluating life-cycle inflow and
outflow of the product. - design
requirement on environmental aspects. Manufacture
s are required to incorporate this framework into
their internal activities of product design.
(However, companies certified by EMAS are
exempted) Parts suppliers are obligated to
provide all the necessary environmental
information to manufacturers
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Responses to EuP
(1) Still under discussion in the EU commission.
Expected to become a proposal in next
summer. Then, put into effect in two or
three years. (2) JBCE(Japan Business
Council in Europe) Opinion - Request to
be invited in discussion as a stakeholder
- The aim is limited to sustainable development
rather than EU business protection
- Business impact should be assessed in advance
- Sufficient lead time should be
provided (3) Opinion from US industrial
association Negative
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Case in US
Proposition 65 (California State Act)
Any business that exposes people to hazardous
substances must give "clear and reasonable
warning" of each exposure (into effect 1988)
In Dec. 1999, Klamath Environmental law center
and Mateel Environmental Justice Foundation filed
a law suit against 93 companies selling
electronic, electric, avionic equipments on the
basis of an exposure risk of lead contained in
PVC insulation of power supply cables. In 2002,
Hitachi paid 30,000 US in accordance with other
100 companies.
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About Chinese RoHS
????????????????
- EEE Manufactures must initiate means for
reduction of hazardous substances in their
products. - EEE put into the marked after July
1, 2006 should not contain Pb, Hg, Cr(VI), Cd,
PBB, PBDE - This is very likely to become similar
to RoHS in EU. Something very interesting is
happing EU commission delegates have visited
Beijing to request for expanding exempt of
this regulation.
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Historical Transition of Chemical Policy
TSCA (Toxic Substance Control Act) Control
production and import of chemicalsubstances
PRTR(Pollutant Release and Transfer
Register) Direct Release of substances to
Environment
CPP (Chemical Product Policy) Control Substances
in Products gtgt REACH, ELV, RoHS etc.,
International Consensus Should be achieved
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PRTR Disclosure in UK (1)
Data in 1999
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PRTR Disclosure in UK (2)
Data in 2000
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PRTR Disclosure Started in Japan
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An Example of Complete Disclosure
On the Back of Tooth Paste in the Traveler
Package I bought at Washington D.C. in 2000
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Corporate Chemical Risk Management
Substance Property (Hazard)
Necessity of Design for Environment as an Engineer
Rate of Exposure
Risk
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Eco-Conscious Globalization
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Green Procurement A Chaining Mechanism
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Latest Issues of Corporate Eco-Management
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Global Rapid Expansion of Green Procurement
Global Market
Materia D
PEID for Prod. B
PEID for Prod. D
Product B

Product A
Mat. D
PEID for Prod. A MD LCA
Deliver
Deliver
Comp. B
Comp. C
B Electronic
Require
Require
D Chemical
PEID for Prod. C
Product C
A Industry Ltd.
Key words
Deliver
PEID Product Environmental
Information Disclosure MD Material
Disclosure LCA Life Cycle Assessment
C Manufacturing
Require
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Green Procurement of Automobile Industry
www.mdsystem.com
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Green Procurement of Hitachi Ltd.
Substances
Constituent
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Prevailing Chemical Composition Investigation
Corporate Green Chemical Policy
Datasheet for chemical substances composition
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Amplifier Mechanism of Green Procurement
Survival Competition
New Global Product Policy
Green Procurement
Amplify
Trigger
- Chemical Manage. - DfE - EMS
ELV
RoHS
REACH
EuP
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Eco-Conscious Globalization
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Green Procurement A Chaining Mechanism
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Latest Issues of Corporate Eco-Management
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Latest Issues of Corporate Env. Management
Counter Measures for Green Procurement
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- Quick response to unexpected customer Req.-
Data sharing with multiple business divisions
Consolidated management for group companies
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- One ISO certification for all subsidiary
companies - Comprehensive data collection and
monitoring
Risk communication
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- Requirement for professional skills- Training
for employees
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A Framework of Design for Environment
Disclosure to the market
In-house
Procurement
Designer
Production
Shared env. information Infrastructure
Safety
Purchased Items
Design Data
Performance Index
Basic Information eg. Chemicals
Environment
Internet
Global sites
Suppliers
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A Framework for Consolidated EMS
Acquire Env. data in the consistent categories
Backtrack data down to lower levels and details

Continue actions with conventional environmental
aspects
Hate to input a large amount of data only for HQ
Intentions of people
HQ
facilities
facilities
Key Issue Gap between HQ and lower level
organizations
Affiliate companies
Keep using our own databases
Sudden merger happened. How can we continue EMS?
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Layers for Chemical Risk Management
Human Control
(1) Guideline (2) Training by role-
playing
Risk Communication
Risk Assessment
System Control
Material flow data
Basic chemical substance database
Successful risk communication requires broad
knowledge and interpersonal skills.