RoHS implementation at Philips Consumer Electronics Maarten ten Houten Senior Sustainability Advisor Philips Consumer Electronics 23 November 2005, Gorinchem RoHS conference

Outline • Sustainability at Philips • RoHS requirements • Implementation of RoHS in Philips CE

Philips Consumer Electronics, Maarten ten Houten, 23 November 2005, AR17-G05-5051-159

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Sustainability: the “triple bottom line" Economic responsibility Profit

Impact

Environmental responsibility Product

Process

Social responsibility Internal

Health & Safety

External

Business principles Philips Consumer Electronics, Maarten ten Houten, 23 November 2005, AR17-G05-5051-159

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Philips Sustainability Policy • • • • • • •

Sustainable entrepreneurship Invest in employees and their work environment. Financial and non-financial targets, stakeholder dialogue. Expects its business partners to be committed to sustainable development. Active in the community, focus on education and healthcare. Philips measures and verifies its sustainability performance and publishes results annually. Explore new businesses and emerging markets.

Philips Consumer Electronics, Maarten ten Houten, 23 November 2005, AR17-G05-5051-159

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History 2. Active: 1980 – 1998 1. History Reactive: 1970 – 1980 • First Environmental Policy (1987) • First environmental program: ‘Environmental opportunity’ (1994 - 1998)

• End of Pipe solutions • Process oriented • Driven by legislation or other external pressures (e.g. oil crisis of 1973)

– Focus on processes and products: (financial savings)

4. Sustainable: 2002 – 2005

3. Proactive: 1998 – 2002

• First sustainability program: EcoVision II • First sustainability report in 2002 • Social, Health and Safety issues included

Consumer Electronics, Maarten ten Houten, 14 October 2005, AR17-G05-5051-132

Consumer Electronics, Maarten ten Houten, 14 October 2005, AR17-G05-5051-132

• Second environmental program: EcoVision • First environmental report (1998) • Product orientation and green marketing

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Consumer Electronics, Maarten ten Houten, 14 October 2005, AR17-G05-5051-132

Consumer Electronics, Maarten ten Houten, 14 October 2005, AR17-G05-5051-132 8 Philips Consumer Electronics, Maarten ten Houten, 23 November 2005, AR17-G05-5051-159

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EcoVision 2002-2005: environmental action program • Product-related targets: – – – –

# Green Flagship products Packaging EcoDesign maturity Supply base

• Manufacturing-related targets – – – –

Energy Water Waste …

Philips Consumer Electronics, Maarten ten Houten, 23 November 2005, AR17-G05-5051-159

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High performance externally recognized • Environmental performance of Philips is better than competition: – Selected member of Dow Jones Sustainability Index – Consistent top tier rank

• CES EcoDesign Award 2004 for 32PF9975 32” LCD TV • Hong Kong Eco-design awards 2005 for Key019 MP3 player/movie camera, Xenium 9@9c mobile phone and DVP520 DVD player. Philips Consumer Electronics, Maarten ten Houten, 23 November 2005, AR17-G05-5051-159

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Consumer associations consistently rate Philips “top class” in sustainability • EU Consumer associations – led by NL Consumentenbond – associate sustainability questionnaires & ratings with 50% of their product tests. • Philips is the only company consistently rated in the “top” green category for CE products.

Philips Consumer Electronics, Maarten ten Houten, 23 November 2005, AR17-G05-5051-159

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Outline • Sustainability at Philips • RoHS requirements • Implementation of RoHS in Philips CE

Philips Consumer Electronics, Maarten ten Houten, 23 November 2005, AR17-G05-5051-159

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Restriction of Hazardous Substances (RoHS) EU-Directive of 2002 on: Restrictions on the use of Hazardous Substances

(RoHS)

EU

Article : ‘Member States shall ensure that the use of lead, mercury, cadmium, hexavalent chromium, and two halogenated flame retardants is phased out by 1 July 2006.’

Equal implementation over all European countries Philips Consumer Electronics, Maarten ten Houten, 23 November 2005, AR17-G05-5051-159

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Scope of the RoHS 8 Categories - Household and professional Large household appliances

Small household appliances

Automatic dispensers

Toys

IT & Telecoms equipment

Consumer equipment

Philips Consumer Electronics, Maarten ten Houten, 23 November 2005, AR17-G05-5051-159

Electrical & electronic tools

lighting equipment

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Maximum concentration values of RoHS (per 1 July 2006)

SUBSTANCE

LIMIT (by weight)

• • • • • •

100 ppm = 0.01% 1000 ppm = 0.1% 1000 ppm 1000 ppm 1000 ppm Recently exempted

Cadmium Mercury Lead Chromium 6+ PBB PBDE

Philips Consumer Electronics, Maarten ten Houten, 23 November 2005, AR17-G05-5051-159

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Exemption list for RoHS • Several exemptions in RoHS process – Exemptions in the directive – Exemptions already accepted by EU – Exemptions requested and under review by EU

• Granted exemptions will be reviewed on a regular basis.

Philips Consumer Electronics, Maarten ten Houten, 23 November 2005, AR17-G05-5051-159

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Other developments related to RoHS • EU Legislation (2002/95/EC) – RoHS (Restriction of Hazardous Substances),

• China adopted the RoHS

1 July 2006 2007/ 2008?

• California issues “SB20 legislation”,

1 Jan. 2007, Same as RoHS, PBDE exempt, but reporting obligation.

Philips Consumer Electronics, Maarten ten Houten, 23 November 2005, AR17-G05-5051-159

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Outline • Sustainability at Philips • RoHS requirements • Implementation of RoHS in Philips CE

Philips Consumer Electronics, Maarten ten Houten, 23 November 2005, AR17-G05-5051-159

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Restriction of Hazardous Substances (RoHS) EU-Directive on: Restrictions on the use of Hazardous Substances

Article :

(RoHS)

EU

‘Member States shall ensure that the use of lead, mercury, cadmium, hexavalent chromium, and two halogenated flame retardants is phased out by 1 July 2006.’ Equal implementation over all European countries

Hg, Cd & halogenated flame retardants banned since 1998 by PCE. So only Pb and Cr6+ needed to implement, where was the main issue is lead. Philips Consumer Electronics, Maarten ten Houten, 23 November 2005, AR17-G05-5051-159

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Where can lead be found that needs to be eliminated? 1. Lead in soldering 2. Lead in component plating/ finishes 3. Lead in components on PWB 3. Lead in 4. Lead in other parts components (incl. Cables, housing etc)

2.Finishing

4. Lead in other parts

1. Soldering Philips Consumer Electronics, Maarten ten Houten, 23 November 2005, AR17-G05-5051-159

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Lead Free Soldering is more difficult.

Philips Consumer Electronics, Maarten ten Houten, 23 November 2005, AR17-G05-5051-159

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Smaller components become hotter than big ones • Small Big

Start solder process

Philips Consumer Electronics, Maarten ten Houten, 23 November 2005, AR17-G05-5051-159

End solder process

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… so separation is necessary on several levels. Com ponents Robust Not forw ard Not Backw ard (fw b + bw d) com patitble com patitble

Leaded process

Ok

Ok

Not Ok

Lead Free process

Ok

Not Ok

Ok

Robust: Not Fwd:

No issue a. Component “upgraded” for LFS b. Alternative component required Not Bwd: Mainly relevant for BGA’s with SAC dots Coding of components/ products in Marketing Development, Purchasing, Logistics !!! Philips Consumer Electronics, Maarten ten Houten, 23 November 2005, AR17-G05-5051-159

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Implementation history of Lead free Year Results

2001

2002

2003

2004

2005

2006

Products Worldwide

Trials

10 products

39%

82%

100%

100%

Activities

Planning + Monitoring Development Reliability testing Deployment/ Training Gathering data component + suppliers RoHS Compliance testing Comp. issues handling

Technology Reflow Wavesoldering

Y N

Y Y

Y Y

Y Y

Y Y

Y Y

Purchasing SMDs Leaded components BGAs/ICs

Y N N

Y Y N

Y Y N

Y Y Y

Y Y Y

Y Y Y

Philips Consumer Electronics, Maarten ten Houten, 23 November 2005, AR17-G05-5051-159

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Lead free change-over process Phase Name

Charateristics

Timing

1

Lead free soldering

Component can withstand lead free temperature

2001-2003

2

Complete lead free processing

Lead free terminal finishes

2002-2004

3

Complete lead free components

Lead is not included on internal connections or component composition

2002-2005

4

Complete lead free products

Lead is not included in other (mechanical) parts (e.g cables etc)

2003-2005

Philips Consumer Electronics, Maarten ten Houten, 23 November 2005, AR17-G05-5051-159

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Enforcement of RoHS compliant products • Demonstrate a consistent approach to control compliance to RoHS requirements – – – –

Planning In house documentation (database, reports) Banned substance declarations Chemical Testing (screening and detailed) • IEC test standard will gives some guidelines.

Philips Consumer Electronics, Maarten ten Houten, 23 November 2005, AR17-G05-5051-159

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Summary RoHS implementation • Long learning curve for RoHS introduction • Planning is needed on product level as well as component level • Tracking and tracing important due to process change • Logistics systems need adaptation • Difference between data and real information • Extensive training of our organisation and suppliers

Philips Consumer Electronics, Maarten ten Houten, 23 November 2005, AR17-G05-5051-159

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