1. Market access requirements EU Engineering products General overview August 2014

2. 2 Contents Overview of Market access requirements Background of EU legislation Drivers for non-legislative requirements How to keep track?

3. 3 Legislation Consumer / User Health and Safety Environment E.g. Packaging, WEEE, RoHS, Cadmium CE Marking/HACCP Social / Fair Trade labels SA 8000 / OHSAS Certificate Codes of conduct ISO 9000 series Certificate EN / IS0 norms ECO Labels IS0 14001 Certificate Quality Social accountability Environment Market driven

4. 4 Legislation Consumer / User Health and Safety Environment E.g. Packaging, WEEE, RoHS, Cadmium CE Marking/HACCP Social / Fair Trade labels SA 8000 / OHSAS Certificate Codes of conduct ISO 9000 series Certificate EN / IS0 norms ECO Labels IS0 14001 Certificate Quality Social accountability Environment Market driven

5. Legislation EU legislation only deals with issues that are relevant for the European consumer and/or the European environment Focus is on: Safety to the consumer Safety to the environment As a result of: The product which is marketed in the EU Use Disposal / waste / recycling The packaging 5

6. 6 (EU) Legislation:(EU) Buyer Requirements: Market access requirements Environmental Issues Product / packaging Consumer Health & Safety Social issues Environmental issues Manufacturing Impact abroad e.g. exporting country Direct impact in the EU 6

7. Legislation For a manufacturer of parts or components the legislation may not be directly relevant However, since the buyer will pass down requirements to his suppliers, indirectly this legislation will be (very) relevant 7

8. Suppliers of products/ components Suppliers of materials Requirements are passed down in the supply chain Producers are part of the supply chain EU Importers/ buyers Responsible products on the European market 8

9. EU Legislation Most legislation is harmonised on a European level CE REACH RoHS Etc. Most…. but not all Be sure to check specific legislation in your export market! 9

10. 10 Legislation Consumer / User Health and Safety Environment E.g. Packaging, WEEE, RoHS, Cadmium CE Marking/HACCP Social / Fair Trade labels SA 8000 / OHSAS Certificate Codes of conduct ISO 9000 series Certificate EN / IS0 norms ECO Labels IS0 14001 Certificate Quality Social accountability Environment Market driven

11. Market driven requirements Why do buyers set additional requirements, going beyond EU legislation? 11

12. CSR: People, Planet and the Profits Reduced Costs Ability to perform in a demanding market Increased market acceptability Increased Profits 12

13. Market driven requirements Corporate social responsibility is a key driver of buyer requirements 13

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15. Market driven requirements But what are the key drivers for Corporate social responsibility (CSR)? 15

16. 16 Managing consumer health & safety risks Unsafe materials (flammable) Hazardous substances Unsafe design Consumer Health & Safety

17. 17 Sometimes to the extreme... source: New Scientist Warning: This product moves when in use Consumer Health & Safety Remove the child before folding

18. 18 Managing social / labour issues Occupational health and safety Minimum age Forced labour Non discrimination Minimum wages Working hours Equal remuneration Right to union membership Social

19. 19 Reputation management Social

20. 20 Managing environmental issues Environment Waste Pollution Dangerous substances Energy use Water use

21. But CSR is not just about risk management or image…. 21

22. 22 Managing (natural) resources & reducing operational costs Economy Agricultural yields Raw materials Energy costs Rare earth metals Productivity

23. 23 Community Community development

24. 24 Value creation New markets

25. 25 Value creation Shared value creation

26. CSR is still on the rise 26

27. 27 In fact…… Many Market [Access] Requirements originate from CSR policies & Many requirements can be dealt with through a CSR policy

28. 28 Legislation Consumer / User Health and Safety Environment E.g. Packaging, WEEE, RoHS, Cadmium CE Marking/HACCP Social / Fair Trade labels SA 8000 / OHSAS Certificate Codes of conduct ISO 9000 series Certificate EN / IS0 norms ECO Labels IS0 14001 Certificate Quality Social accountability Environment Market driven

29. 29 Black Box Purchase requirements: -Social -Product safety -Environmental -Quality Consumers Consumer products NGOs Governments Company policy Legislative compliance: - Consumer health and safety - Environment Public pressure: - Replace dangerous chemicals - Brands: responsibility for supply chain Expect: - Safe products - Good circumstances Company values Clients - Products according to specs - High quality assurance

30. How to keep track? Check for your products and potential export countries! Use the CBI website 30

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32. Assignment Discuss in groups: How can market access requirements influence your plans to export? What decisions may they influence? Where do they fit in your export marketing plan? 32