Professor Y.C. Chan PhD, FIEEE, FHKIE, FIEE, CEng , Chair Professor of Electronic Engineering, City University of Hong

1. Professor Y.C. Chan PhD, FIEEE, FHKIE, FIEE, CEng, Chair Professor of Electronic Engineering, City University of Hong Kong Director, EPA Centre. REDUCING TOXICS The Impact of RoHS, WEEE, EuP and REACH on the supply chain for GREEN MANUFACTURING

3. Recycling of Electrical and Electronic Components (EEE) E-waste treatment in (贵屿) Guiyu, (广东) GuangdongGreen Peace China

4. Outline • WEEE, RoHS, EuP and REACH • How to decrease the usage of hazardous substances (HS) • Recycling of electrical and electronic equipment (EEE) • Energy saving – EuP • Reducing the toxic materials

5. What is Green Manufacturing? Green manufacturing is defined as the design, processing and commercial use of materials processes and products, which are economical and sustainable while minimizing pollution and risk to human health and the environment. Green Manufacturing” refers to a set of multidisciplinary approaches aimed at reducing: 1. Energy consumption 2. Material usage/toxics The issues on Green Manufacturing Processes include :

6. What is Green Manufacturing? Product Design – Life Cycles – Materials – Assembly & Disassembly – Quality function deployment (QFD) – Design for Desirables (DFx) Process Design – Types & Wastes – Process Impacts – Plant Issues – Input-Output Analysis – Supply Chain Issues System Issues & Industrial Ecology – System Modeling – Life Cycle Analysis – Risk Assessment and Management – Decision Making – Future Steps

7. The Three Spheres of Sustainability Environmental-Economic Energy Efficiency Subsidies / Incentives for use of Natural Resources Environmental-SOCIAL Environmental Justice Natural resources stewardship Locally & Globally Sustainability Economic-Social Business Ethics Fair Trade Worker’s Rights

8. Need for Green Manufacturing • Customers are environment conscious. • Environmental protection is a top agenda for everyone. • Reasons for environmental care • running out of fossil fuel supply (energy crisis) • global warming • depletion of the ozone layer • loss of trees and forest • Green manufacturing is a challenge for today but as Business opportunities for tomorrow.

9. Measures for Prevention of the Environmental Pollution Cause by E Wastes Establishing electronic waste management. ROHS, WEEE, REACH, etc. Promoting green manufacturing design technology and proper energy saving technology. (Design for environment DfE), EuP, etc. Standardizing and developing the collection and recycling industry, strengthening the e-waste management. Educating the public and disseminating information on e-waste problems.

10. Restriction of Hazardous Substances European Union Directive -2002/95/EC-on the Restriction Of the use of certain Hazardous Substances (RoHS) in electrical and electronic equipment (EEE). Effective July 1, 2006, requires restricting or prohibiting the use of the following substances in electrical and electronic equipment in covered EEE: 1. Lead (Pb) - found in cables and terminations, solders, PCB coatings. - Overexposure to lead can damage blood-forming, nervous, urinary and reproductive systems. 2. Cadmium (Cd) - used in rechargeable batteries (NiCd), plastic stabilizers, electroplating. - cancer-causing agent– especially prostate and kidney cancer in humans (carcinogen). - toxic to the respiratory system (destroy epithelium layer). - high exposure results in severe bronchial and pulmonary irritation. - hamper the development and function of immune system, reproductive organs and nervous system. 3. Mercury (Hg) - used in dental fillings, batteries. In electronics industry, thermal indicators, fluorescent lamp. - Very small amount of Hg can do a significant damage to the environment. For example, 1gm of Hg per year is enough to contaminate all the fish in lake with a surface area of 8 hectares. 4. Hexavalentchromium (Cr6+) - Used in dyes, pigments, alloys, catalysis, plating and tanning, screws, nuts. - Cr(VI) is a known human carcinogen, Cr(VI) is also a respiratory tract irritant. - Hexavalent chromium (Cr6+ ) exists in alkaline, strongly oxidizing environments. - Trivalent chromium (Cr3+ ) exists in moderately oxidizing and reduced environments. 5. Polybrominatedbiphenyls (PBB) & Polybrominateddiphenylethers (PBDE) -Used as flame retardants in plastics TV / Display Cabinets, PCB – epoxy resin, Wire / cable insulation and connectors. - It will react and form polybrominated dibenzo-p-dioxins (PBDD) and polybrominated dibenzofurans (PBDF) after its reaction to put down fire. Both are carcinogenic elements.

11. Lead: in the glass of cathode ray tubes, electronic components, fluorescent tubes. in certain steel (<0.35%), aluminum (<0.4%) and copper alloys (< 4%) in high melting temperature type solders in solders for servers and Storage Arrays (Until 2010) in solders for network infrastructure equipment in electronic ceramic parts (i.e. piezoelectric components) Mercury: in some lighting applications Cadmium: Cd plating Hexavalent chromium: in absorption refrigerators. The proposed RoHS exemptions as proposed on January 2008 are: Lead in solders for the connection of very thin enameled wires with a terminal (submitted by Siemens) Lead and cadmium as components of the glazes and color used to glaze or decorate lamp bases, lamp carriers or clocks (submitted by Cérame-Unie) Lead in solders in a third party component of Cortex family equipment (submitted by In-Snec) Exemptions of RoHS

12. China RoHS Measures for Administration of the Pollution Control of Electronic Information Products . (电子信息产品污染控制管理办法) Issued: Feb. 28, 2006 Effective: March 1, 2007. • The Measures, regarded as Chinese RoHS, will regulate all production and distribution activities for Electronic Information Products (EIPs) in China, as well as the import of EIPs to China. They specify hazardous substances in EIPs and place requirements and obligations on the manufacturers and importers. Applicable scope: Electronic information products (EIP), including: • Radio and television products, Computer products, Household electronic products etc. Regulated substances: TS (Toxic Substance) and HS (Hazardous Substance) shall refer to the substances similar to EU RoHS contained in electronic information products of 10 Categories as explained in the “Priority Products Catalog”. Key Proposed Elements: • Environmentally friendly materials and design (Article 9, 10). • Labeling (Article 13). • Environment-friendly use period (Article 11). • Obligation for dealers / sellers (Article 15).

13. Federal – limited activity States – led by CA, MA, ME, NY, WA, VT, NJ, SF. Increasingly regional in approach. Enforcement is ad hoc and public. No judicial resolution and hence have an uncertain precedent. California RoHS: Senate Bill 20: Electronic Waste Recycling Act of 2003 Senate Bill 50*: Emergency Amendment to SB 20 Restricts the use of lead, mercury, cadmium, and hexavalent chromium, not flame retardants. “Covered electronic devices” are restricted. Covered electronic devices is a Video display devices containing a 4” screen measured diagonally and fit in following categories like Cathode ray tubes, Computer monitors containing CRTs, Laptop computers with LCDs, LCD containing desktop monitors, Cathode ray tube containing devices (CRT devices), TVs containing CRTs, TVs containing LCD screens, Plasma TVs, DVD Players. U.S.A

14. Enforcement Regulation of the Waste Management and Public Cleansing Law. Product categories are similar to EU RoHS. Law for the Promotion of Effective Utilization of Resources. The objectives of the law are summarized and are sometimes referred to as Design forEnvironment (DfE). Rationalize use of raw materials: Depending upon the industry being regulated, this could mean adopting small or lightweight parts and materials, reducing amount of generated by-products, and/or improving production yields. Use recyclable resources & reusable parts: Depending upon the industry being regulated, this could mean using recycled materials & used parts in products, using raw materials that can be recycled, designing products to facilitate disassembly for recycling, labeling products to facilitate sorted collection, operating voluntary take-back of used products, and/or processing discarded products for reuse. Promote long term use of products: Depending upon the industry being regulated, this could mean making parts of durable materials, designing products that can be repaired or upgraded, and/or using universal parts to facilitate repair. Japan

15. Green Manufacturing Source: Philips Medical Systems

16. Green Manufacturing

17. Green Manufacturing

18. Waste Electrical and Electronic Equipments (WEEE) • European Union Directive -2002/96/EC- on Waste Electrical and Electronic Equipment (WEEE). • Promote re-use, recycling and recovery of electronic waste to reduce quantities of such waste • Improve environmental performance of producers, distributors and consumers) • Register of Producers • If you are a ‘producer’ then you will have to register with the Environment Agency. • Declaration of types of products sold, weights and b2c / b2b split. • Marking and information. (Articles 10, 11 and 12) • Collection arrangements. (Article 5) • Retailer or final user can take back depending on the written agreement between them. • In-store collection, collection points. • ‘Producers’ to pay for recover and recycling of both ‘historic’ and ‘new’ WEEE • A visible fee can be charged on the sale of products. • Treatment after recovery and recycling. (Article 6) • Product design. (Article 4) • Producer allocation and financing. (Article 8 and 9) and penalties.

19. Dependent on electric currents or electromagnetic fields to work and generate, transfer and measure fields. Voltage rating <1000 Volts AC or < 1500 Volts DC Covers 10 categories of equipment (Annex IA): 1- Large and small household appliances. 2- IT and telecommunications equipment. 3- Consumer equipment. 4- Lighting equipment. 5- Automatic dispensers. 6- Electrical and electronic tools (not large-scale stationary industrial tools). 7- Toys, leisure and sports equipment. 8- Medical devices. 9- Monitoring and control instruments. General Exemptions for WEEE:- Equipment that operates over 1000v AC or 1500v DC. Military equipment (specific use). Implanted and infected medical equipment. Fixed installations. Large scale stationary industrial tools. Equipment that is part of another type of equipment that is not within the scope of the Directive. Equipment that does not rely on electricity to perform its primary function. What does WEEE Cover?

20. China WEEE Administrative Regulations on the Recycling and treatment of Waste and Used household Electronic Products and Electronic Products. (废旧家电及电子产品回收处理管理条例) “Regulations on Recycling and Disposal of Waste and Used Household Electrical Appliances”. Applicable scope The scope of China WEEE is broad that it covers “household electrical and electronic products.” Currently, the products categories listed in China WEEE include: 1. Air conditioners; 2.Computers; 3.Refrigerators; 4.Televisions; 5.Washing machines Funding Mechanism: National special funds to subsidize WEEE National special funds to subsidize WEEE recycling and disposal will be established. Producers’ Responsibility: Producers of electrical and electronic products shall Design products that favor recovery and reuse, select non- or low hazardous and toxic substances, and provide information on major material composition in the product manual. Conduct WEEE treatment on their own or consign it to qualified treatment entities. Provide to Provincial relevant authorities with information on product category, quantity that produced, sold and exported. Collection: Dealers and post-sale service organizations are liable to the collection, and deliver the collected products to qualified treatment organizations. WEEE Treatment Companies shall be qualified by relevant authorities at provincial level, and undertake testing, repair, labeling, and disposal of covered WEEE and sell the used products for resale. Reused WEEE must meet certain “security and performance” standards (Article 13).

21. EEE Recycling and Related Legislation in China Electronic waste recycling has already been embodied in some related laws and regulations in China Cleaner Production Promotion Law. (清洁生产促进法) Issued: June 29, 2002 Effective: January 1, 2003. Article 20: “When products and packaging are designed, their influences on mankind and natural environments during their life-cycle must be considered and priority accorded to selecting toxin-free, nonhazardous, easily degraded and easily recycled options.” Article 27: “If any product or package is listed in the compulsory recycling directory, enterprises engaged in their production or sale shall recycle the discarded product or used packaging.” (translated by NDRC) Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste. (中华人民共和国固体废物污染环境防治法) Issued: December 29, 2004 Effective: April 1, 2005. Article 5: “producers are responsible for prevention and treatment of their own solid waste.” Article 18 “requests that the design of products and packages must be complied with the national clean production related regulation, and that the companies which produce, sell or import the products and packages that are listed in the compulsory recycling directory, must take back their products and packages in compliance with the related regulation.”

22. Green Recycling Coasters - Cutouts (made from recycled circuit boards) Caddies - CAT (Made from recycled plastic) Doormat - Lakeland Limited (made from recycled rubber) Leather Bound Journal – Natural History Museum (made from reclaimed leather & recycled paper) Chair - Blue Marmalade Ltd. (made from recyclable plastic) Rain Saver - Blackwall (Even Greener) (Made from recycled plastic)

23. Green Production and Process • Greener Production Management: • Component compliance • Materials control • Vendor commitment and monitoring • Process control • Tools and equipment selection • Storage management • Packing materials JEDEC < 0.2wt%Pb (Joint Electron Device Eng. Council) JEIDA < 0.1wt%Pb (Jap. Elec Ind. Development Ass.) EUELVD < 0.1wt%Pb (EU End of Life Vehicles Directive) Green concept in design - Resource saving - Utilize Green production process - Selection of proper tools and equipment - Recyclable constructions - Choice of components – non-toxic, recyclable - Minimize the number of components - Vendor selection Green manufacturing process : Lead-Free Soldering for electronics “No Clean” PCB Assembly Reduce Emission of Pollutants Use of environment-friendly chemicals Use the lead-free solders to manufacture the products and don’t allow any intentionally added Pb in the products, then the products can be defined as lead-free products! Packaging Materials – Disposal and Environment-friendly No release of toxic substances in product life End of Life Treatment – Recycling of Components, Collection of equipment Use of Biodegradable materials

24. Green Designs Some landmarks in the company’s green product development Source: Canon, Japan.

25. Alternatives in Material Selection Age of Plastics • The worldwide production of synthetic plastics reaches 260 billion pounds/year (50 lbs/person/per year). • Approximately 30% of the plastics produced used for packaging. Plastics and Environment • Feedstock's for most synthetic polymers are petroleum (crude oil), natural gas and coal-natural resources that have taken millions of years to be formed and are nonrenewable. Recycling of Plastics • Plastic drink containers to make up every pound of toys can help to keep at least ten out of the dump. • Utilization of recycled materials in product design enhance the recyclability of components at the end of useful life

26. Alternatives in Material Selection Source: R. A. Gross and B. Kalra, Science, V.297, p.803 (2002). Bio-based/biodegradable Plastics • Bio-plastics • Petroleum based synthetic biodegradable plastic Biopolymer: Life Cycle Biopolymers are naturally recycled by biological processes. • Performance polymers (e.g., PLA) from annually renewable resources (corn, plants, milk byproducts) • With proper structure, biopolymers can be decomposed and recycled • Applicable to extrusion, thermoforming, and blow molding packaging solutions. Major Advantages with Biopolymers • Renewable (sustainable) • Biodegradable • Biocompatible • Environmental friendly

27. Energy Using Products (EUP) • On July 6, 2005, the European Parliament issued a directive “establishing a framework for the setting of eco-design requirements for energy-using products”. • On establishing a framework for the setting of Eco-design requirements for Energy-Using Products and amending Council Directive 92/42/EEC • Currently covers Boilers, fridges/freezers and ballasts for fluorescent lights • Very wide scope – all products with an energy source, except for forms of transport. • The initial focus will be on electric motor systems, HVAC equipment, water heaters, domestic appliances, consumer electronics, office equipment, and lighting except forall means of transportation. Over time, expand to include all energy-using products. • Those which represent a significant volume of sales and trade more than 200,000 units a year within the EU.

28. Boilers and combo boilers Water heaters PCs and monitors Imaging equipment Consumer electronics (TVs) Stand-by losses Battery chargers and external power supplies Office lighting Public lighting Residential room conditioning Electric motors, water pumps Commercial fridges and freezers Domestic refrigerators and freezers Domestic dishwashers and washers Solid fuel small combustion installations Vacuum cleaners Laundry dryers Complex set-top boxes Domestic lighting Full List of Product Group

29. Green – Energy Saving Source: Vitesse Ethernet Solutions, US. Source: Philips Electronics. Energy Efficient Solutions for Electronics Vitesse's Ethernet devices help consumers save up to 80% of unnecessary energy consumption Energy Advantage 25W T8 Lowest energy consuming 4ft T8 Lower Energy Cost Easy to Experience: Change existing 32w T8 Save 25% energy, instantly! No ballast change required! Advanced: Low Mercury - Better for the environment Exceeds LEED requirements

30. What is REACH? • REACH stands for Registration, Evaluation, Authorisation and Restriction of Chemicals adopted in December 2006. • REACH Regulation (EC) No 1907/2006 and Directive 2006/121/EC amending Directive 67/548/EEC were published in the official Journal on 30 December 2006. • Enterprises which manufacture or import more than one tonne of a chemical substance per year will be required to register it in a central database administered by the new EU Chemicals Agency. • Registration: • Around 30000 estimated substances produced or imported into the EU at >1 tonne /year has to be registered. • Registration deadlines for substances produced or imported to EU:- • First year of entry into force (1 June 2007) to year 3: Substances of greater hazard which are produced or imported to EU at the rate > 1000 tonnes and CMR (carcinogenic, mutagenic or toxic to reproduction )> 1 tonnes have to be registered along with relevant testing documents. • From year 3 to year 6: Substances produced or imported to EU at rate of 100 tonnes – 1000 tonnes have to be registered . • From year 6 to year 11: Substances produced or imported to EU at rate of < 100 tonnes will be registered. • A non phase-in substance is a completely new substance that has neither been used nor registered in the market before the entry of force of REACH.

31. Definition of REACH • Evaluation: • Will require the submission of additional data – could be substantial. • Prioritization criteria to take account of Tonnage. • Hazard and exposure. • Potential risk to human health or the environment. • Dossiers for substances with volumes >100 tonnes will be subjected to an evaluation by the relevant national authorities. • Where an authorities believes that the risk of using a substances is expected to be high e.g. due to the structure of the substance, they can carry out a more detailed assessment. • Authorization: • Substances of high concern must be authorized for use at an EU or national level, e.g. CMR’s(carcinogenic, mutagenic or toxic to reproduction), PBT’s(persistent, bioaccumulative and toxic), vPvB’s ( very persistent and very bioaccumulative), POP’s(persistent organic pollutants) endocrine disruptors • Authorization of specific uses • Development of a data file and preparation of a risk assessment • Can obtain a conditional authorization on socio- economic grounds

32. Summary • Impact on Industries: • To comply with the regulations, we need to invest in: • Control the Wastage of resources develop systems to monitor. • Monitoring the supply of materials. • New production equipments and process technologies, e.g. lead-free soldering. • Quality and reliability enhancement. • Testing of components. • Best Management practice and Enterprise resource planning (ERP) upgrade

33. Summary • Positive impact of green manufacturing • Testing ground to competitors on the basis of knowledge, technologies, investment and management. • Higher quality of products in the market. • Greater market share due to better product image • Cost reduction on a long term basis by controlling process, energy and resources • Global companies partnership among “green” suppliers and manufacturers only. • Enhance company name and image by way of better products. • Healthy and competitively clean working environment.