Fujifilm's Fujifilm's CSRCSR--driven driven

EU EU RoHSRoHS compliance activity compliance activity with Supply Chain Partnerswith Supply Chain Partners

TBLI 2006 BangkokMay 26, 2006

FujifilmCSR DIV. Ecology & Quality Management DIV.

Jun Yamaguchi

Motto of Japanese MerchantMotto of Japanese Merchantfrom from ancient timeancient time

Merchant Street at Ohmi Hatiman, Japan!"#$

Motto of Japanese MerchantMotto of Japanese Merchantfrom from ancient timeancient time

Society(Other Stakeholder)

is OK

Who Purchases(Buyer)is OK

Who Sells(Supplier)is OK

ContentsContents

1. Demand of Society

2. Request from Purchaser

3. Request from Seller(Supplier)

4. Fujifilm’s Position

5. Conclusion

For 21st Century Eco-friendly Products

Sustainable development Sustainable development

"Development that meets the%needs of the present without compromising the ability of future generations to meet their own needs“%The Brundtland Report in 1987%%This was endorsed five years later %%%%%%at the Earth Summit in Rio

Cadmium in SedimentsCadmium in SedimentsBaltic SeaBaltic Sea Tokyo BayTokyo Bay

2.5mg/kg7.2mg/kg

Environmentally Sound Environmentally Sound Management of Toxic ChemicalsManagement of Toxic Chemicals

• Program areas proposed by Agenda 21– Expanding and accelerating international assessment

of chemical risks– Strengthening of national capabilities and capacities

for management of chemicals• Johannesburg Plan of Implementation

The aim to achieve, by 2020, the use and production of chemicals in ways that lead to the minimization of significant adverse effects on human health and the environment

EU Directives to control EU Directives to control Heavy MetalHeavy Metal

• Directive 91/338/EECRestriction on the marketing and use of cadmium to give color to a variety of finished plastic products if the cadmium content (expressed as Cd metal) exceeds 0,01% by mass of the plastic material.

• Directive 94/62/EC%packaging and packaging wasteThe sum of concentration levels of lead, cadmium, mercury and hexavalent chromiumpresent in packaging or packaging components shall not exceed 100 ppm by weight

RoHS RoHS Directive (2003/2/13)Directive (2003/2/13)

From 1 July 2006, new electrical and electronic equipment put on the market should not contain

– Lead– Mercury– Cadmium– hexavalent chromium– the brominated flame retardants

• PBDE (polybrominated diphenyl ethers)• PBB (polybrominated biphenyls )

%RoHS&The restriction of the certain hazardous substances in electrical and electronic equipment

Sony PS one affairSony PS one affair• Dutch customs officers impounded 1.3 million

PlayStations and 800,000 accessory packs worth over 180 million Euro ($160.25 million) Year 2001

• The PS One consoles and packs were bundled with cables which the inspectors found to contain up to 20 times cadmium ( 0.2%>>0.01%)

• Sony swapped PlayStation One cables

• Estimated impact on sales of approximately EUR 110 million and on operating

• Estimated impact on profit of approximately EUR 52 million including costs of rework

Other CasesOther Cases• Company C (US)

– In ‘99 , a PC product using Halogen retardant was proved not to meet the “Public Procurement Act” of Sweden

– contract-out the supply contract ($50 M)

• Company D (UK)– In ‘98, product of sweeper was proved not to meet the

CadmiumCadmium concentration condition of Swiss Law and German Law, and gave up the export.

• Company S (Korea)– At May 2002, CadmiumCadmium was detected in it’s audio

product (13,500 units) at Dutch custom, and removed the parts to export to EU.

– In 2003, CadmiumCadmium was detected in it’s protective vinyl of Monitor product (14,000 units) at Dutch custom, and removed the protective vinyl to export to EU.

Each Country started to Each Country started to make own make own RoHSRoHS--like like lawlaw

ContentsContents

1. Demand of Society

2. Request from Purchaser

3. Request from Seller(Supplier)

4. Fujifilm’s Position

5. Conclusion

For 21st Century Eco-friendly Products

Most of E&E company started Most of E&E company started the Green Procurement Surveythe Green Procurement Survey

Green Green DesignDesign

Added ValueAdded Value(Adding Function)(Adding Function)

Own Own CompanyCompany

( ( Product )Product )

GreenGreenProcurementProcurement

PartsPartsMaterialMaterial

Raw MaterialRaw Material

Gre

en P

rocure

ment

Surv

ey

In order to make our products green,E&E company needs to employ green designs along with green procurement to use green parts and materials

To certify the Law compliance

E&E Companies E&E Companies Own Style Survey Own Style Survey

• To avoid the Risk, to be compliant with the Laws or more ( Cost Consuming for each )

–Make own “Green Procurement Survey Standard”–Request too much

• Analytical Data • Certification of compliance with the “Own Standard”• “Beyond the Law issue” without Social Agreement

FujifilmStandard

SonyStandard

PanasonicStandard

SAMSUNG Standard

IPCStandard

Suppliers

Survey Request

All stakeholders are struggling as All stakeholders are struggling as supply chain(SC) is so complicatedsupply chain(SC) is so complicated

( long & multi( long & multi--sector & global )sector & global )

OriginalOriginalPartsParts

F9

ContentContentFixationFixation

RawMaterialContentContentDesignDesign

ProductionProcess

Product Parts

Fixed Content Area

ContentContentfixfix

ChemicalsArticle! Process

Green procurement survey

Paint

Pellet

AdditivesPr

int

Mix

/ M

oldi

ng

P16/37

Efforts for Efforts for ““StandardizationStandardization””( just started( just started…….. ).. )

• As Material Declaration Guide in E&E area,JIG ( Joint Industry Guide ) has issued in 2006 by JGPSSI and EIA– JGPSSI (Japan Green Procurement Standardization Initiative )

– EIA (Electronic Industries Alliance)

– (EICTA(European Information & Communications Technology Industry Association))

• To make standards in this area, TC-111 has introduced in IEC in 2005

( TC111: Environmental Standardization for Electrical and Electronic Products and Systems)

• Others (many)

ContentsContents

1. Demand of Society

2. Request from Purchaser

3. Request from Seller(Supplier)

4. Fujifilm’s Position

5. Conclusion

For 21st Century Eco-friendly Products

Request from Sellers Request from Sellers ( Suppliers )( Suppliers )

• Request for Standardization( with Accountability )– Let all SC players recognize each responsibility– Unified system to share each responsibility of

SC, from chemicals to final product..without proper information from upper stream, there is no way to guarantee one’s information

– Unified method for material declaration• Reporting thresholds of Content Chemicals• Unified subject chemicals list

– Appropriate treatment of CBI ( Confidential Business Information )

– Content chemical information sharing System

ContentsContents

1. Demand of Society

2. Request from Purchaser

3. Request from Seller(Supplier)

4. Fujifilm’s Position

5. Conclusion

For 21st Century Eco-friendly Products

Fujifilm Fujifilm produces variety produces variety of products ( has full SC )of products ( has full SC )

• TypicalFujifilm Products– Chemicals– Films– Papers– Memory

tapes– Consumer

Equipment– Professional

Equipment

The The FujifilmFujifilm Group and itGroup and it’’s s StakeholdersStakeholders

FujifilmFujifilm’’ss positionposition• Handle the issue as Fuji CSR issue• Achieve compliance with laws through

sound partnership with suppliers– Share the background information – Share the compliance procedure at each

unit process( Purchase , Production, Selling )– Request each responsibility

• To produce Law Compliant Parts/Chemicals

• To declare the content chemicals information as it is

• Follow the standards• Provide good information

to our Customers

FujifilmFujifilm’’ss ActionsActions• Issued “Guidelines for the Management of

Chemical Content” for suppliers• Held explanatory meeting for suppliers.

– Held 9 times meeting, once a month from August 2005

– Attendees are c.a. 1000 in total in 2005

• Requested to make self-audit over the unit processes they have

• Provide e-auditing system to share the result

• Will feedback the result to help suppliers to improve their unit processes

Fujifilm Fujifilm Group Guideline Group Guideline

• Fujifilm issued “Guidelines for the Management of Chemical Content”at March 2005

Japanese

Chinese

English

Unit Processes in SC to be Unit Processes in SC to be controlled by each suppliercontrolled by each supplier

Examples ofExamples ofKey for CP:Key for CP:

P26/37

ee--auditing auditing systemsystem

ContentsContents

1. Demand of Society

2. Request from Purchaser

3. Request from Seller(Supplier)

4. Fujifilm’s Position

5. Conclusion

For 21st Century Eco-friendly Products

ConclusionConclusion

• To Achieve the Compliance with Laws, – We will make efforts to establish the

“Content Chemicals Information Declaration Line” throughout the supply chain

– We will collaborate with all stakeholders , including suppliers andIndustrial Associations, Standard Bodies.

Thank you for your kind audience