Bill Kierl. Motorola, Inc. Manager, Environmental, Health and Safety Product and Business Support

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1 Bill Kierl Motorola, Inc. Manager, Environmental, Health and Safety Product and Business Support

2 So why are we here? To talk about the impact of WEEE, ROHS and the ELV? Well Yes, But also To consider the impact of the changing landscape of Environmental Regulations on the Electronics Industry

3 The New Global Marketplace US Energy Star EU EuP Directive China Button Cell Mercury Content Limits (proposed) Denmark Lead Bans Traditional Regulatory Focus Pollution Controls Air, Water, Waste EU Chemicals (REACH) Energy Efficiency Labelling US State Material Labelling Law (proposals) EU RoHS Directive (Feb 2003) Japan Recycling Fee (IT) Recycled Content Labelling EU WEEE Directive (Feb 2003) US State EPR Laws (CA, MC) End-of-life Management Canada EPR Laws National & Provincial OECD ESM Guidelines for PCs EU & US Universal Waste Laws EPA CRT Rule Design Manufacture Distribution Sale Collection Recycling/Disposal ELV June 2003 China MII Methods (RoHS) California (RoHS) EU RoHS Directive (Feb 2003) US State Mercury Initiatives South America (RoHS) Worker Health & Safety Pollutant Release Reporting (PRTRs) Taiwan Recycling Fee China MII Methods (Labelling) Eco- Labels US State Mercury Notification Requirements (VT, ME, NH, RI) OECD EPR Initiatives Brazil EPR Initiatives Japan Consumer Electronics EPR ELV June 2003 Basel / OECD Restrictions on Cross-Border Shipments US Federal HazWaste Regulation & Exemptions Basel/UNEP Mobile Phone Initiative China SEPA Pledge (Takeback)

4 Regulatory Intelligence Awareness of proposed worldwide regulations Do they directly impact your product (s) Yes, what changes must be made? No, are there indirect impacts? Many regulations have very short implementation times relative to product development cycles and technical R&D programs.

5 Industry Wide Objectives Voluntary efforts vs. regulations - Allow market driven solutions. Harmonized requirements where regulations are needed. Self Declaration versus 3rd party assessments.

6 End to End Solution Customers COMMUNICATION Sales Business Planning Marketing Finance Legal Distribution Compliant Products Business Planning/Marketing EHS Engineering IT System Sourcing Sales Service/Repair Legal Shipping Imports/Exports Order Entry IT (Order Entry System) Service/Implementation Research and Development Manufacturing Purchasing Quality IT Purchasing Finance COORDINATION New Env Laws and Motorola Standards Product Shipment Product Readiness Manufacturing Readiness Supplier Readiness Product Roadmaps EHS Legal Engineering EPP Product Safety & Compliance IT Solutions

7 Research & Development RoHS, WEEE and ELV require fundamental changes to engineering principles New materials and process must be developed and understood in order to be used in new designs Industry and society loses 50 years of knowledge in the use of certain materials and processes so we must base all design and manufacturing on very short term knowledge

8 Engineering Process New engineering criteria Previously; fit, form and function, now engineers must be concerned with material content. This is not a common skill set and not taught in school! Engineers must understand chemistry; Engineers must know how and when to apply new legal criteria; Exemptions for materials; Exclusions for categories of equipment; System to provide data to engineers;

9 Engineering Design Adds risk to designs as new materials are introduced electrical and mechanical properties change. The tried and true methods are no longer available. Requires new tools; new learning curves Cost, Cost, Cost

10 Manufacturing New manufacturing process Right parts in the Right product Dramatic increase in the part numbers that must be managed Different suppliers applying different solutions Product obsolescence

11 Business Infrastructure Qualification of components and parts was based on fit, form and function IT solutions and Enterprise Resource Processes (ERP) were not designed to consider material content as a key factor. Entire business processes must be revised Stratification of product requirements mandates new systems for order processing, product review and order approval.

12 Due diligence Collection of material composition data Different Suppliers with different Solutions Documentation of product compliance prior to filling an order

13 It is not possible to even begin to describe the impact of this new era of regulations on the Electronics Industry in a 20 minute discussion The industry is changing and we know that the change will drive us to be better as an industry and, better as Corporate Citizens

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