Hewlett-Packard s Approach to REACH

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1 Hewlett-Packard s Approach to REACH Raymond Ho Environmental Director North Asia October 13, Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

2 Content HP in brief HP s Commitment to the Environment REACH* HP s REACH Program HP REACH Information & Inquiry Links v Scope of the presentation does not include the REACH registration requirements for phase-in and new substances contained in chemical preparations. 19 October

3 HP in brief (as of October 2006) Fortune Ranking #11 Net revenue: $91.7 billion Annual R&D budget : $3.6 billion Company founded: 1939 Headquarters: Palo Alto, California Employment: approx. 156,000 Business presence: over 170 countries Customer base: more than 1 million Principle business: Computing systems, imaging & printing, IT infrastructure, IT services 19 October

4 Our Commitment to the Environment

5 Our Commitment to the Environment At HP, we believe our company can succeed in the long term only if we make it our business to ensure that the environment does too. This means: Providing products and services that are environmentally sound throughout their lifecycles Conducting our operations in an environmentally responsible manner Practicing what we preach, and demanding the same standards of our partners and suppliers Offering convenient, responsible recycling services 19 October

6 Why environmental issues matter at HP HP s commitment to corporate environmental responsibility started with Dave Packard and Bill Hewlett in1930 s Global Citizenship is one of HP s corporate objectives It s a competitive requirement in a global market Complex environmental standards and government regulations exist worldwide Environmental concerns of organized interests (NGO s) demand change It s the right thing to do! 19 October

7 Environmental Sustainability Design for the Environment Energy efficiency* Materials innovation Reuse and recycling Environmentally sound operations Emissions reductions in our own operations Partnership with World Wildlife Fund Manufacturing operations, worldwide, are registered to ISO Supply chain management* Supplier Code of Conduct Supplier assessments and audits End-of-life solutions* Closed loop systems for material recovery, recycling and reuse HP Planet Partners Program goal: 1B pounds of product recycled by the end of 2007 v Global Citizenship focus areas HP s REACH Program fit here Recycle Use Design Product Lifecycle Distribution Materials Manufacture 19 October

8 HP considers four aspects of materials innovation: 1.Substituting materials when there are concerns due to their potential effects on people and/or the environment 2.Eliminating materials of concern from our products 3.Lowering product weight and size to decrease resource use and reduce environmental impacts throughout the product life cycle 4.Using innovating and recycled materials to reduce product environmental impacts and to facilitate recycling 19 October

9 REACH

10 What is REACH? REACH (stands for Registration, Evaluation, Authorisation, and Restriction of Chemicals ) is a new European Union (EU) chemicals regulation* that will enter into force on 1 June 2007, with phased deadlines to 2018 Aim is to improve the protection of human health and the environment, and enhance the competitiveness of the EU chemicals industry Replaces existing EU chemical legislation with a single system for all chemical substances, both new and existing (phase-in) Gives greater responsibility to industry to: Assess the properties of chemicals Manage the health and environment risks Communicate information to suppliers and users Calls for progressive substitution of the most dangerous substances when suitable alternatives have been identified *EU Regulation 1907/2006, O.J. L 396/ October 2007

11 REACH Complexity and Expertise Size of the legal documents : WEEE RoHS EuP REACH 15 pages 5 pages 30 pages 850 pages October 2007

12 REACH definitions Substance: A chemical element and its compounds S Sulfur Fe Iron Powder NaCl Sodium Cloride Preparation: A mixture or solution composed of two or more substances; S+Fe Sulfur + Iron Powder Article: An object which during production is given a special shape, surface or design which determines its function to a greater degree than does its chemical composition; Car body October 2007

13 Imported Articles Notebooks and Desktop Computers Monitors, Flat-Panel Displays Servers, Switches Printers Digital Cameras PDAs/Handheld Computers Other articles include... Printer cartridges Packaging Manuals Media (DVDs, CDs) Batteries October 2007

14 Obligations for Candidate List Substances in Articles Obligation No 1: (Information obligation) If Candidate Substance weight is > 0.1% of the article weight Then for a supplier of an article must: For commerical users: Provide sufficient information to allow safe use of the article including, as a minimum, the name of that [Candidate] substance. For consumer users: Provide the consumer, on request, with sufficient information to allow safe use of the article including, as a minimum, the name of that substance within 45 days of receipt of the request. Obligation No 2: (Notification obligation) If Candidate Substance weight is > 0.1% of the article weight, AND The importer imports >1 ton / year into the EU Then the supplier must notify that substance to the Agency October 2007

15 Timeline 6/ /2008 New substance on Candidate List Information obligation 6/2011? months 1. REACH entry into force 2. First Information* obligation October st publication of Candidate list expected 2. De facto Information* obligation Notification obligation * MSDS

16 HP s REACH Program

17 HP s REACH Program In 2006, the company-wide REACH Team was chartered to drive all aspects of HP s global response to REACH Goal: HP will meet all REACH requirements and provide our customers with information about the chemicals in our products as needed to comply with REACH. 19 October

18 Key elements of HP s Reach Program HP supports the overall REACH objective of improving the protection of human health and the environment. HP s long standing policy is to provide products and services that are safe to use and environmentally sound throughout their lifecycle. HP is working since 2002 with industry and government to achieve a workable system that fulfills the goals of REACH With the start of the company-wide program HP has been working with our suppliers to ensure that HP products comply with REACH. 19 October

19 Hewlett-Packard Approach Cross-functional team with senior sponsorship Worldwide product transition Engage with suppliers early Drive industry standardization HP Program Manager Technical Service & Support Procurement Product Data Management Product Development Groups Regional Execution Teams Requirements Communications 19 October

20 Why is REACH challenging? All parts in product must become compliant Uncertainty over requirements Little vertical integration means lots of coordination Transitioning very stable processes 19 October

21 Key success factors Use working assumptions to manage uncertainty Consider the entire value chain and product lifecycle Prepare for data requirements Drive and utilize industry standards Start early Engage with suppliers Shortening time to maturity Recycle Use & Support Design Materials Manufacture Distribution 19 October

22 Suppliers are critical to managing REACH compliance Multi-tiered supply chain may contain 100 s of suppliers! HP Tier 1 supplier Tier 2 Tier 2 Tier 2 Tier 3 Tier 3 Tier 3 Every member of the supply chain owns compliance Requirements and data exchange needed at each tier 19 October

23 General Specification for the Environment To specify pan-hp requirements that will allow our products to comply with regional environmentally driven laws and regulations HP requires its suppliers (and their suppliers) to meet the GSE Suppliers include those that manufacture HP s products, parts, components and materials HP product design centers and manufacturing facilities must also meet the GSE 19 October

24 Information & Inquiries

25 Information & Inquiries Information on HP s environmental programs, including additional information on REACH may be found at: ent/productdesign/materialuse.html HP s position statement can be found at: ent/pdf/reachstatement.pdf 19 October

26 Thank You