AND PRODUCT END OF LIFE NATIONAL ELECTRONIC EQUIPMENT MANAGEMENT & COMPLIANCE ASSISTANCE WORKSHOP MARK J. SHARP ATLANTA, GA SEPTEMBER 24, 2002 PANASONIC & PRODUCT END OF LIFE Panasonic profile: Leading brand of the world’s largest Consumer Electronics Company—Matsushita Electric Industrial Co., Ltd. – Global sales in FY 01: $52 billion in 170 countries including $9 billion in North America • Sales by category – Consumer (Audio/visual: 23%, Home appliances 18%) – Industrial (IT and Telecom 28%, industrial equipment 10%) – Components (21%) – Large North American presence (20,000 employees) Manufacturing facilities in 6 States – Includes factories in Georgia, Tennessee, and Kentucky 1 PANASONIC & PRODUCT END OF LIFE Popular myths about electronics waste*: – 1) Volumes are skyrocketing • FALSE COMPUTERS: – Computer sales actually declined in 2001 – Y2K investments in technology have slowed the market – Introduction of new “killer application” software has waned – – – – CONSUMER ELECTRONICS: CE sales through 30 weeks of 2002 are down from 2001 sales CRT TVs sales down (–11.9%) TV/VCR combo sales down (-19.4%) VCRs sales down (-25.8%) * Excerpted from Jerry Powell speech “E-Scrap’s Future: Recent Key Trends” PANASONIC & PRODUCT END OF LIFE Popular myths about electronics waste: – 2) Technology changes will breed greater wastes • FALSE – HDTV will not obsolete analog TVs » Affordable converter boxes will be available » Consumer & broadcaster acceptance of digital TV has been slow » HDTV “ready” sales will only reach 1.63 million units in 2002 – Flat panel display sales limited by high prices compared with CRT-based technology – Technological change is restrained somewhat by consumer buyin and slowing economy » Is Windows XP really an essential upgrade? 2 PANASONIC & PRODUCT END OF LIFE Popular myths about electronics waste: – 3) Management of electronics waste is an immense environmental problem • FALSE • Scope of problem often overstated – How many TVs will consumers discard even if recycling is convenient and available? – Older units tend to migrate inside households – Sound research and analysis is needed, not anecdotal “evidence” • What is the real cost of CRT recycling? – Even within individual states, costs wildly vary » California survey showed range from $2 to $57.50 each PANASONIC & PRODUCT END OF LIFE Panasonic perspective on electronics product stewardship or End of Life: – Support proper management of used electronics at end of life (EOL) – Advocate sustainable “solutions” that protect the environment and are economically viable – Panasonic has partnered with other stakeholders to initiate a series of electronics collection pilot projects – Panasonic has also developed new material recycling technologies for plastics and printed wiring boards – In summary, our design engineers are committed to Environmental Technology and Ecological Thinking 3 PANASONIC & PRODUCT END OF LIFE Collection Events/Projects Serve Important Role • Help stimulate development of recycling infrastructure & technology • Provides valuable information about electronic materials entering end of life • Opportunity for manufacturers to work with recyclers and local communities to help educate the general public • Relieves participating municipalities from ongoing electronics collection burden PANASONIC & PRODUCT END OF LIFE Panasonic participation in collection events in 2002 – Collection data from 2002 events so far: – More than 467,000 pounds collected at 25 events during the first half of 2002 (details to be released Oct. 9th in Philadelphia ) • Events held in PA, NJ, CT, IN, and VA – Events in Mid-Atlantic states underwritten by EPA grant to eCycling (collaborative regional initiative of EPA Region III) – http://www.epa.gov/reg3wcmd/eCycling.htm • Panasonic joined Sharp and Sony working with Envirocycle to help defray some costs • Companies paid costs to recycle their branded products • About 5% of the collected products were Panasonic 4 PANASONIC & PRODUCT END OF LIFE Current Collection Initiative with Nxtcycle, Panasonic, Sharp, & Sony – Ongoing collections planned in 17 California counties and cities including Los Angeles and San Diego during Fall 2002 – Collections events also held in Salt Lake City, UT, and San Bernardino County, CA PANASONIC & PRODUCT END OF LIFE Panasonic Sponsorship of Best Buy Program • Panasonic was the initial corporate sponsor of the Best Buy Program announced in April 2001 • Best Buy held 10 collection events in 6 states in 2001 (CA, FL, IL, MD, NJ, WA); additional events planned for 2002 • Over 250,000 pounds of electronics were collected • Events operated by 3rd Party Recyclers • Pay-As-You-Throw Model • Panasonic helped support advertising and discount coupons for new purchases 5 PANASONIC & PRODUCT END OF LIFE EIA Pilot Project • Sponsored by 10 EIA member companies: Panasonic, Canon, Hewlett Packard, JVC, Kodak, Nokia, Philips, Sharp, Sony and Thomson • Test 3 collection models: Municipal, Simulated Advanced Disposal Fee, and Consumer Dropoff • Developed Solicitation of Interest letters to be sent to State Governments and other interested parties • Developing criteria for choosing recyclers • Collections began late 2001; continuing through 2002 • Grant recipients and partners in collection pilots include: • eCycling initiative with EPA Region III (mid-Atlantic states) • Northeast Recycling Council • State of Florida PANASONIC & PRODUCT END OF LIFE Green product targets: – Products which improve the environmental efficiency, meeting Save, Clean, and 3R targets Target (GP/All products Developed) 2002 28% or over 2005 70% or over 2010 90% or over – All Panasonic products evaluated on an Energy Use Index and a Resource Use Index 6 PANASONIC & PRODUCT END OF LIFE Focus of green products development: Reduction of toxics in products • Use of lead-free solder in products – Tin, silver and bismuth-based solder has been applied to all Panasonic portable mini-disc players – Tin and copper-based solder also has been developed by Panasonic and is used on main PC boards of tabletop VCRs • Target: Abolish use of lead solder in all models by end of FY 2002 Use of halogen-free plastics • Eliminates toxic gas emissions when incinerated • Must overcome issues of reliability, performance & cost • Patented new method to recycle flame retardant resins Design for easy recycling • Recycling of CRT glass slowly increasing as new uses are developed for the recycled glass PANASONIC & PRODUCT END OF LIFE Panasonic initiatives aimed at increasing product recycling and recyclability • Panasonic TV tube funnels composed of 10% post consumer recycled glass – Highest percentage ever used in new TV tubes – Breakthrough achieved with industry partners Techneglas and Envirocycle • Resin standardization and reduction in number of grades – Polystyrene (TVs, VCRs, office equipment): 120 grades reduced to 10 – Polypropylene (white goods): 80 grades reduced to 9 – ABS (laptops, some white goods): 200 grades reduced to 12 7 PANASONIC & PRODUCT END OF LIFE Design for minimum resources Design for Minimum Resource through Simple Assembly and Disassembly ÅDFMRÅ Tool to support the design of eco-friendly, recyclable product Design for Assembly “less in size, weight and # of parts” “structure easy to assemble”Å@ design fabrication assembly recycling material separation disassembly sale sale Customer Material producer Assembly purchase collection Recycling Design for Recyclability “structure easy to disassemble” “material easy to recycle” PANASONIC & PRODUCT END OF LIFE Å DFMR:New criteria of manufacturing For the globe (responsible for community) For customers (responsible for business) Inverse-manufacturing Manufacturing Production with less Material Quality Production with less Energy Less work-hour to disassemble Less parts to disassemble Less energy to consume Production Retaining value of material Abolish hazardous substance Recyclable material Reusable parts Design for durability Å Less # of parts Less alignment task Less variety of parts Less fastenings Cost Structure for easy assembly Less # of parts Less assembly work-hours Less variety of parts Easier fastening method Å New Product Less weight of parts Less # of parts Less fastening material Use recycled material Delivery Properly layered assembly Less # of units 8 PANASONIC & PRODUCT END OF LIFE Evolution of Panasonic TV designs PANASONIC & PRODUCT END OF LIFE Evolution of Panasonic TV designs 9 PANASONIC & PRODUCT END OF LIFE Å Material Recycling System Å Pursuing “Product to Product” material recycling Å Achievable by developing a high-accuracy plastics identification system “Product to Product” material recycling ÅFrom used TVs to TV components againÅ End-of-life TV set Disassembly Identification Equipment Development Material recycling is possible if plastic types and additives are identified. ÅNew TV Crush Re-pellet Mold Non-flame retardant Flame retardant Decabromo Triazine TBA Ethylenebis Disassembly equipment development Matsushita Eco-technology Center Paint Stains Foreign particles removal technology development Å@Removing metals, non-woven cloth, trash etc. PANASONIC & PRODUCT END OF LIFE Panasonic has developed high accuracy plastic identification equipment – Equipment uses infra-red measurements & is nearly 100% accurate in identifying plastics New PC Board recycling system also has been developed by Panasonic – System uses unique parts separator to sort parts, purify valuables, and detoxify precious metals – Reduces processing costs by 87% Panasonic is commercially marketing these machines to the recycling industry 10 PANASONIC & PRODUCT END OF LIFE • Panasonic is proud of its environmental record of achievements • Our Environmental Record: • Life cycle assessments performed across all major product categories in minimize impact on environment • Over 3,100 major suppliers have been evaluated under new Green Procurement Guidelines • Commitment to eliminate use of leaded solder in all products; already sold over 6 million units with leadfree solder • Certification of 252 manufacturing sites worldwide to ISO 14000 Environmental Management System • 4-Time Energy Star Partner of the Year award winner (1999-2002) PANASONIC & PRODUCT END OF LIFE 11