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<ul><li><p>Focus On Printed Circuit Boards and Assembly </p><p>World Wide Environmental Compliance </p><p>Overview of Environmental Trendsand IBM Requirements </p><p>John H. Quick Sr. EngineerIBM Poughkeepsie, NYNovember 19, 2009</p></li><li><p> 2 </p><p>IBM Product Stewardship ProgramIBM's Product Stewardship program was established in 1991 to bring additional focus tothe corporate environmental affairs policy objectives on product environmental designand performance.</p><p>The Product Stewardship program within IBM's worldwide EMS provides developmentorganizations with direction and goals, infrastructure, tools and expertise to applyenvironmental life cycle considerations from product concept through product end-of-lifemanagement. </p><p>The objectives of IBM's Product Stewardship program include: Develop products with consideration for their upgradeability to extend product life. Develop products with consideration for their reuse and recyclables at the end of </p><p>product life. Develop products that can safely be disposed of at the end of product life. Develop and manufacture products that use recycled materials where they are </p><p>technically and economically justifiable. Develop products that will provide improvements in energy efficiency and/or reduced </p><p>consumption of energy. Develop products that minimize resource use and environmental impacts through </p><p>selection of environmentally preferred materials and finishes. Environmental design requirements are communicated and verified with suppliers.</p></li><li><p> 3 </p><p>Storage: DS8000</p><p>Blade: BladeCenter H</p><p>System z: z10 EC</p><p>System z: z10 BC</p><p>System x: 3455</p><p>System x: 3655</p><p>System i: 570 stack</p><p>Power System w/ xSeries servers in a rack</p><p>Various Power Systems</p><p>IBM Customers want value added Greener products</p><p>Lets Build A Smarter Planet Finding the Value In Green</p></li><li><p> 4 </p><p>Environmental leadership</p><p></p><p>1990-2007 Early Results IBM reduced or avoided CO2 emissions by an </p><p>amount equivalent to 45% of its 1990 emissions through the company's global energy conservation program.</p><p>Earned Leadership Status</p><p> 2009 #1 Green IT Vendor, Computerworld</p><p> 2007 #1 Vendor Green 500 Supercomputing</p><p> 2008 CNET UK Business Technology Green IT Initiative of the Year</p><p> 2008 One of top 15 Green IT companies, InfoWorld</p><p> 2008, CERES ranked IBM #1 among 63 different companies across 11 different industry sectors for corporate climate change governance practices.</p><p> 2008, Gartner and WWF-UK ranked IBM #1 among fourteen I/T companies for Basic Environmental Management of Climate Change.</p><p> 2008, Climate Counts ranked IBM #1 among electronics companies for Climate Friendliness. </p><p></p></li><li><p> 5 </p><p>About 1 billion computers will become potential scrap between now and 2010(IDC, Gartner and the National Safety Council)</p><p>55% of US-based companies do not have an IT disposal strategy (IDC)</p><p>In 2006 IBM processed over 100 million pounds of used equipment and sent less than 1% to the landfill</p><p>Environmentally Responsible disposal</p><p>To optimize TCO benefits, </p><p>companies require a </p><p>corporate standard </p><p>disposition strategy </p><p>Gartner Group</p></li><li><p> 6 </p><p>Road to World Wide Environmental Compliance Is Wide</p><p>IBM systems are designed and specified to be compliant with IBM systems are designed and specified to be compliant with all countries' regulationsall countries' regulations</p><p>no matter where we ship themno matter where we ship them</p></li><li><p> 7 </p><p>World Wide Environmental Regulations Examples</p><p>Europe RoHs Directives 2002-95-EC WEEE Directive 2002-96-EC EuP Directive 2005-32-EC REACH Regulation (EC) 1907/2006 Packaging Directive 2004-241-EC Phthalates /PVC / Halogen free (future)</p><p>North America California Waste Electronics Recycling Act- SB 20/50 (CA version of RoHS / WEEE) Product take-back regs in several states Individual State RoHS like legislationadopted or proposed.</p><p> USA-Environmental Design of ElectricalEquipment Act (H.R. 2420) introduced</p><p> Canada Provincial legislation gaining focus</p><p>Brazil CONAMA Resolution 257/99) Solid waste Policy PL 203/91 (Draft)</p><p>China RoHS / WEEE Regulation for administrative Measure on the Control of Pollution Caused by Electronic Information Products Catalog published</p><p>South Korea South Korea: Basic Environmental Policy Act Industry agreements to limit certain</p><p>materials and for products to be recyclable</p><p>Japan J-MOSS / Basic The Law for the Promotion</p><p>of Effective Utilization of Resources-3Rs - reduce, reuse, and recycling </p><p> and Continually Growing and Continually Growing No harmonized WW Standard</p><p>Australia RoHSOther Drivers Non-Government Organizations (NGOs)- GreenPeace,</p></li><li><p> 8 </p><p>Federal RoHS Bill Introduced in U.S. House of Representatives</p><p>What about a federaltake back bill ?</p><p>On May 14, 2009, Rep. Michael Burgess (R- TX) introduced H.R. 2420, which proposes to amend the Toxic Substances Control Act (TSCA) to prohibit the manufacture after July 1, 2010 of electroindustry products that contain lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls (PBBs), and polybrominated diphenyl ethers (PBDEs) above the maximum concentration levels specified in the European Unions Directive on the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment 2002/95/EC (RoHS Directive). See H.R. 2420, 4(a).</p><p>Bill really focused on electronic waste (e-waste)</p></li><li><p> 9 </p><p>State Legislation and World Wide WEEE RegulationsGenerally, the scope of products covered is getting broader </p><p>Source: Electronics TakeBack Coalition (June, 2009)</p></li><li><p> 10 </p><p>Environmental Compliance Process &amp; Challenges</p><p>DfE Manufacture Supply Chain Take-Back, Disposal,&amp; compliance</p><p>Design forEnvironment</p><p>Material Compliance </p><p>for RoHS</p><p>Design For RoHS</p><p>Design For EuP</p><p>Design For IPP</p><p>Disposal Operations</p><p>Lead Free Compliant</p><p>RoHSCompliant</p><p>REACHCompliant</p><p>Proof OfCompliance</p><p>CompliantProcesses</p><p>Identify Parts &amp; Assemblies</p><p>Substance management</p><p>BirthCertificate</p><p>(DoM)</p><p>Substance data</p><p>Material Declaration</p><p>(PCD)</p><p>Ship toRestrictions</p><p>CountrySpecific</p><p>Legislation</p><p>Waste Stream</p><p>WEEE</p><p>Recovery</p><p>Treatment</p><p>Disposal Confirmation</p><p>ELV(Vehicles)</p><p>MaterialManifest</p><p>Destruction Certificate</p><p>Audit</p><p>Non-Conformance</p><p>CorrectiveAction</p><p>Process</p><p>CategorizeIdentify Treatment Reporting/Analysis</p><p>SiteInspection</p></li><li><p> 11 </p><p>Design for Environment</p><p>Think about material types:</p><p> Use less harmful materials Use materials from sustainable sources Use materials from recycled sources Use materials which can be recycled</p><p>DfE</p></li><li><p> 12 </p><p>Who Is Responsible for Regulation Compliance ?</p><p>Amended RoHS Directive removes the term producer and replaces manufacturer, distributor, importer or authorised representative to be collectively known as economic operators. Unlike old RoHS, where generally only one of these operators would be defined as the producer, under the change, each of these operators will have obligations under the Directive. Just because IBM doesnt physically make equipment (OEM, ODM, black box) doesnt remove IBMs obligations to ensure whatever we import or distribute complies fully with the requirements of the legislation and is suitably documented and labeled.</p><p>Everybody</p><p>IBMs Environmental Due Diligence approachFocus on Records</p><p>Product Content Declaration (PCD) Document </p><p>Manufacture</p></li><li><p> 13 </p><p>New use for CE Conformity Mark</p><p>Member states shall presume electrical and electronic equipmentbearing the CE marking as conforming to this (RoHS ) Directive</p><p>The CE Mark is a mandatory conformity symbol required for products sold in the European Economic Area. The CE mark indicates conformity to the legal requirements of the European Union (EU) Directive with respect to safety, health, environment, and consumer protection.</p><p>By affixing the CE marking, the manufacturer, its authorized representatives, or any entity placing the product on the market asserts that the item meets all of the essential requirements of all the applicable EU Directives and that the applicable conformity assessmentprocedures have been applied correctly. All products offered for sale anywhere within the EU must have the mark or they cannot be sold. Each EU country inspects equipment and documentation to make sure that products conform as required. Any deviations from complete conformity will lead to sanctions such as warnings, sales bans, fines or even imprisonment. </p><p>Source: Present EU recast draft - this recast is simply a proposal and is not yet in is highly likely that the CE mark for RoHS compliance will be adopted early 2010</p></li><li><p> 14 </p><p>IBM Environmental Requirements</p><p> IBM Engineering Specification (ES 46G3772) establishes baseline environmental requirements for all Deliverables where this specification is referenced in a Statement of Work, print, contract or other procurement document's.</p><p> ES 46G3772 implements IBM's environmental policy objectives and contains some, but not all, environmental legal requirements for deliverables.</p><p> Supplier shall ensure the Deliverables comply with all Environmental Laws and are ready for import, export, sale or other distribution of the Deliverable in all jurisdictions worldwide, regardless of where they are sold to IBM.</p><p> IBM Global Procurement: Information for suppliershttp://www- </p><p> tes~information+for+suppliers</p><p>Baseline Environmental Requirements for Supplier Deliverables to IBM</p><p></p></li><li><p> 15 </p><p>IBM Environmental Requirements</p><p> Environmental Laws include laws, rules and regulations at local, state, provincial, national or international level that relate to environmental matters, including without limitation material restrictions, material bans, labeling, availability of product environmental information, energy efficiency, end-of-life take back, battery requirements and other similar requirements.</p><p> Full compliance requirements with the European Union (EU) Directive 2002/95/EC on the Restriction on the use of Certain Hazardous Substances in Electrical and Electronic Equipment (RoHS) are not part of ES 46G3772, but are rather applied through the combination of ES 46G3772, other applicable contract provisions and IBM engineering specifications, such as 53P6233 or 97P3864. In circumstances where multiple documents contain restrictions on the same chemical or substance in the same application, the most restrictive requirements apply.</p><p>Baseline Environmental Requirements for Supplier Deliverables to IBM</p></li><li><p> 16 </p><p>REACH</p><p> The overriding aim is to ensure that the most dangerous substances are replaced with safer alternatives. In effect, businesses must prove that substances that they produce or use are safe a change from the previous way chemicals were regulated which put the burden of proof on the authorities.</p><p> All companies that produce or use chemicals are being given obligations under REACH. Manufacturers and importers must gather information on the properties of all substances that they produce or import in quantities greater than one tonne and register them in a central database. Users of chemicals must apply risk management measures for certain substances and provide information on how they use substances to their suppliers.</p><p> Registration is to be staggered so chemicals are phased into the REACH system by 2018. The European Chemicals Agency, based in Helsinki, is the central authority dealing with the REACH system.</p><p> Provisions are made for companies that produce or use the same chemicals to work together in consortium at national and EU levels, in order to reduce to the minimum the administrative and financial burdens on companies, particularly for SMEs.</p><p>Source: EUs regulation on the Registration, Evaluation, Authorisation and Restriction of chemicals (REACH) website</p></li><li><p> 17 </p><p>Design for Environment (DfE) requirements &amp; NGOs</p><p>Source: NGO - Clean Production Action, an ETBC partner organization</p><p>Toxic material restrictionsalso driven by NGOs</p><p>Published: September 2009</p><p>Electronics manufacturers, standards bodies, and legislators have begun to take notice of the human health and environmental concerns associated with the use of brominated and chlorinated compounds in electronic products. An array of conflicting definitions and policies have emerged to address these concerns at various levels </p><p>NGO's asking for clear timelines when industry will have halogen free equipment</p><p>Environmental Working Group</p></li><li><p> 18 </p><p>Human health and Environmental Concerns</p><p>Every organo-halogen compound used in electronics can produce dioxins and furans, particularly during the end-of-life treatment of obsolete equipment. This chart shows just a few of the bromine- and chlorine-containing compounds used in electronics products manufactured over the past few decades. In addition to well-known BFRs (HBCDD, PBB, PBDEs, and TBBPA), the chart mentions some phthalates used with PVC plastic (BBP and DBP), as well as other persistent and bioaccumulative substances used in electronics production, such as chlorinated paraffins (SCCP and MCCP).PBT is the acronym for persistent bioaccumulative and toxic substances.</p><p>PBB PBDEs PVC &amp; DEHP/BPP / DBP </p><p>SCCP / MCCP *TBBPA HBCDD New HalogenatedSubstances </p><p>Forms Dioxins When Incinerated (most potent cancer causing agents) </p><p>Based on ref. source: Clean Production Action, an ETBC partner organization</p><p>Previously Used - BannedProhibited in IBM Deliverables</p><p>REACHSwitzerlandNorwayCanada</p><p>Washington State</p><p>In use TodayRestricted Limits in IBM Deliverables</p><p>Prohibited above 0.1 %by weight</p><p>The European Union has approved without restriction its use in circuit boards and plastics with no significant health concerns. *Largest BFR in terms of production. 70% used as a reacted flame retardant in electrical and electronic equipment and 20% used as an additive to plastics</p><p>EU ApprovedFor Use InPCBs</p><p>PotentialNew Material</p><p>IntroductionOf </p><p>Restrictions Annex 1V</p><p>Ban + limits</p><p>Currently Regulatory Practice IBM Voluntarily prohibited PBBs and PBDEsfrom use in products in 1993</p><p>?Introduction</p><p>Of Restrictions </p><p>Annex 1VBan + limits</p></li><li><p> 19 </p><p>EU Recast Draft</p><p> (3d) Regulation (EC) No 850/2004 of the European Parliament and of the Council of 29 April 2004 on persistent organic pollutants1 recalls that the objective of protecting the environment and human health from persistent organic pollutants cannot be sufficiently achieved by the Member States, owing to the transboundary effects of those pollutants, and can therefore be better achieved at Community level. Pursuant to that Regulation, releases of persistent organic pollutants, such as dioxins and furans, which are unintentional by-products of industrial processes, should be identified and reduced as soon as possible with the ultimate aim of elimination, where feasible. Thermal treatment or uncontrolled disposal of waste electrical and electronic equipment containing halogenated flame retardants or PVC can contribute significantly to the formation of dioxins and furans.</p><p> The RoHS recast needs to be put into the context of the EUs international obligations to reduce total releases of dioxins and furans, with the goal of their continuing minimization and,...</p></li></ul>


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