1. What can Eco-design do for me as SME in the Electronics Sector. Prof
What can Eco-design do for me as SME in the Electronics Sector? Prof.Dr.Ir. Ab Stevels Applied EcoDesign, Design for sustainability Lab Delft University of Technology Sustainability Center Philips Consumer Electronics

2. Outline Why Environment and Business How to make money with green
Defensive, Cost driven and Pro-active activities
A growth model for EcoDesign Activities
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3. Why Environment and Business?
IT IS BUSINESS not just technicalities.
Upstream: suppliers, creativity
Downstream: marketing and sales, image
 IT IS BUSINESS not just design
Vision, strategy, programme
 IT IS BUSINESS
Managing the green processes
GREEN IS ABOUT MONEY!
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4. Environmental thinking as a new creative management approach
“Look with fresh eyes at old problems.”
Prevention (“do not make it happen”)
Functionality thinking, paradigm shift
(“why are things as they are”)
Life cycle approach (“stakeholder benefits”)
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5. How to make money with green? (Supplier)
Less use of utilities, auxiliaries
Example: printed wiring boards (Lucent)
Use of recycled material
Example: TV cabinets (Philips)
Contributions to Eco Design
Example: IC, subassemblies
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6. How to make money with green? (Ecodesign)
Less materials
Example: bill of material of green flagships (Philips)
Application of smart materials
Example: self disassembly of phones
Application of recycled material
Example: 10% recycled cardboard = 3% less cost
Less Packaging, weight, volume’
Example: Philips packaging reduction strategy
Less environmentally relevant substances
Example: TV cabinets
Lower disassembly time lower assembly cost
Example: Philips Monitors
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7. How to make money with green? (Customer)
Lower cost of ownership
Example: reduce energy consumption in use phase
Easy, fun, convenience
Unpack, packaging waste
Feel good, examples:
Philips is a caring company (image)
This product is 100% recyclable
No hazardous substances
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8. How to make money with green? (Quality)
Increase quality, reduce reject level
Reduction of design complexity
Shifts in the Hinkley diagram
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9. How to make money with green? (Paradigm shift)
Functionality instead of embodiment focus
Life Cycle Optimisation (example smart IC)
Different Physical Principles
(example: LCD instead of CRT)
Service capabilities without mechanics
(example IT applications)
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10. Correlation 5 ways to make money and benefits
way money immaterial/ emotion
Ecodesign Resource depletion Lower life cycle impact, compliance
Suppliers Supply costs Enable ecodesign
Green Marketing Sell more Caring, fun, nice to
and Sales have
Quality Less reject Easy, simple
Paradigm shift Higher margins Lower life cycle
/ Functionality Lower costs of impact
ownership
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11. Three types of industry approaches
Defensive
legal compliance
no negative publicity
Cost driven
resource reduction (materials, packaging)
(dis)assembly
Pro-active
user focus
enhance business
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12. Defensive environmental activities
Driver
Compliance with laws, regulations Penalties
ISO (paperwork) Competition
Environmental labeling Competition
Environmentally relevant substances Bad press
Take-back obligation Penalties
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13. Pay-back environmental activities
Driver
ISO Reduction of use
(process part) of utilities
Packaging reduction Volume & weight
Application of recycled material Reduction of Env. load
Ease of (dis)assembly Assembly, end-of-life cost
Weight reduction Enclosures, wire/cable,
miniaturization
Take back/ disassembly End-of-life and assembly costs
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14. Pro-active environmental activities
Company driver
ISO (product part) Integration of green in the product creation process
Green marketing flagship designs We do it!
validation of designs Greener than competition
Designs with lower cost for user Energy consumption
Design with improved Be a “caring company”
chemical content
Designs with ‘green materials’ Resource reduction
Durable designs Customer “feel good”
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15. Feedback /continuous improvement
Generic model of integrating environmental aspects into the product development process
Get facts, prioritize according to benefits and feasibility, align with company strategy, consider environmental aspects, life cycle thinking
Brainstorming, life cycle screening, consolidate into specification
Applying design approaches
Evaluation of results against targets and specification
Release, communication plans
Consider environmental aspects and effects
Stage 1:
Planning
Stage 2:
Conceptual design
Stage 3:
Detailed design
Stage 4:
Testing/Prototype
Stage 5:
Market launch
Stage 6:
Product review
Feedback /continuous improvement
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16. Developments at Royal Philips Electronics
6-9 years ago
3-6 years ago
Now
Management involvement + ++
+++
Programme
Policy statement and its interpretation
Environmental Opportunity
EcoVision
Orientation
Defensive
Cost oriented
Pro-active
Approach
Procedures
Technical
Business
Tools
Mandatory rules
Manual
Management of processes
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17. Mandatory Rules (Philips 1993 – 1996)
Banned substances (heavy metal, PBBE, PCB, PCT, CFC, etc.)
Environmental information
Packaging
Marking and labelling
Customer information
Batteries
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18. What was good and what should be improved?
To Be Improved
Awareness created
Perception as threat by organisation
Action taken, first mover
Benefits for company doubted
Environmental managers in place
This is special, technical
Collection of information
Philips, what is in it for me?
Program further developed
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19. The environmental opportunity program (Philips 1996 – 2000)
All factories EMS certified (ISO or EMAS)
25% energy reduction in all operations
15% packaging reduction in all operations
Eco-Design according to business needs
Supplier requirements
Creation of internal, external network
Active participation in legislation, regulation discussions
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20. What was good and what should be improved?
To Be Improved
- Business groups systematically confronted with environmental through EMS
- Sometimes bad experience with 9001, why should ISO be better
- Clear cost savings through energy saving
- ‘ In the factories it works, why not for products’
- Clear cost savings through packaging reduction
………….
- Eco-design taking off, manual in place
- Eco-design manual too static, LCA turns out to be too difficult, need for more practical approaches
- Suppliers requirements
- Business rationale, resistance purchasing
- Internal and external network built
- ……………
- Lobbying
- EU/government inflexibility backfires internally
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21. EcoVision of Philips Electronics (1998-2002)
Manufacturing (reference 1994)
35 % waste reduction in 2002
25% water reduction in 2002
Hazardous substances reduction in 2002
Category I 98%
Category II 50%
Category III 20%
35% energy efficiency in 2002
ISO on all manufacturing sites in 2000
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22. EcoVision of Philips Electronics
Products (per Business Creation Unit)
Green focal areas in product communication
Green flagships each year (1 per BCU)
X% of products fully ecodesigned in 1999
Y% of products fully ecodesigned in 2001
15% packaging reduction in 2002 (ref. 1994)
Y > x to be determined by each devision
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