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Market access requirements EU Engineering products General overview. August 2014. Contents. Overview of Market access requirements Background of EU legislation Drivers for non-legislative requirements How to keep track?. Legislation. Consumer / User Health and Safety. Environment.
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Market access requirements EU Engineering productsGeneral overview August 2014
Contents • Overview of Market access requirements • Background of EU legislation • Driversfornon-legislativerequirements • How to keep track?
Legislation Consumer / User Health and Safety Environment CE Marking/HACCP E.g. Packaging, WEEE, RoHS, Cadmium SA 8000 / OHSAS Certificate Codes of conduct Social / Fair Trade labels ISO 9000 series Certificate EN / IS0 norms ECO Labels IS0 14001 Certificate Social accountability Quality Environment Market driven
Legislation Consumer / User Health and Safety Environment CE Marking/HACCP E.g. Packaging, WEEE, RoHS, Cadmium SA 8000 / OHSAS Certificate Codes of conduct Social / Fair Trade labels ISO 9000 series Certificate EN / IS0 norms ECO Labels IS0 14001 Certificate Social accountability Quality Environment Market driven
Legislation EU legislationonly deals with issues that are relevant for the Europeanconsumer and/or the European environment Focus is on: Safety to the consumer Safety to the environment As a result of: The product which is marketed in the EU • Use • Disposal / waste / recycling The packaging
Market access requirements (EU) Legislation: (EU) Buyer Requirements: Social issues Consumer Health & Safety Environmental Issues Product / packaging Environmental issues Manufacturing Impact abroad e.g. exporting country Direct impact in the EU 6
Legislation For a manufacturer of parts or components the legislation may not be directly relevant However, since the buyer will pass down requirements to his suppliers, indirectly this legislation will be (very) relevant
Producers are part of the supply chain Requirements are passed down in the supply chain EU Importers/ buyers Suppliers of products/ components Suppliers of materials Responsible products on the European market
EU Legislation Most legislation is harmonised on a European level CE REACH RoHS Etc. Most…. but not all Be sure to check specific legislation in your export market!
Legislation Consumer / User Health and Safety Environment CE Marking/HACCP E.g. Packaging, WEEE, RoHS, Cadmium SA 8000 / OHSAS Certificate Codes of conduct Social / Fair Trade labels ISO 9000 series Certificate EN / IS0 norms ECO Labels IS0 14001 Certificate Social accountability Quality Environment Market driven
Marketdrivenrequirements Why do buyers set additional requirements, going beyond EU legislation?
CSR: People, Planet and the Profits Reduced Costs Ability to perform in a demanding market Increased market acceptability Increased Profits
Marketdrivenrequirements Corporate social responsibility is a key driver of buyer requirements
Marketdrivenrequirements But what are the key drivers for Corporate social responsibility (CSR)?
Managing consumer health & safety risks Consumer Health & Safety Hazardous substances Unsafe design Unsafe materials (flammable)
Sometimes to the extreme... source: New Scientist Consumer Health & Safety • Warning: • This product moves when in use • Remove the child before folding
Social Managing social / labour issues Right to union membership Forced labour Minimum wages Non discrimination Equal remuneration Occupational health and safety Working hours Minimum age
Social Reputation management
Environment Managing environmental issues Water use Pollution Waste Dangerous substances Energy use
But CSR is not just about risk management or image….
Economy Managing (natural) resources & reducing operational costs Productivity Agricultural yields Energy costs Raw materials Rare earth metals
Community Community development
Value creation New markets
Value creation Shared value creation
In fact…… • Many Market [Access] Requirements originate from CSR policies • & • Many requirements can be dealt with through a CSR policy
Legislation Consumer / User Health and Safety Environment CE Marking/HACCP E.g. Packaging, WEEE, RoHS, Cadmium SA 8000 / OHSAS Certificate Codes of conduct Social / Fair Trade labels ISO 9000 series Certificate EN / IS0 norms ECO Labels IS0 14001 Certificate Social accountability Quality Environment Market driven
Company values Governments Legislativecompliance: - Consumerhealth and safety - Environment Black Box NGOs Company policy Public pressure: - Replacedangerouschemicals - Brands: responsibilityfor supplychain • Purchase • requirements: • Social • Product safety • Environmental • Quality Clients - Productsaccording to specs - High quality assurance Consumers Consumer products • Expect: • Safe products • Goodcircumstances
How to keep track? Check for your products and potential export countries! Use the CBI website
Assignment Discuss in groups: Howcanmarketaccessrequirementsinfluenceyour plans to export? Whatdecisionsmaytheyinfluence? Where do they fit in your export marketing plan?