1. Doing Business with the EU - Waste management regulations: implications to electrical and electronic industries in Thailand Implementing the WEEE Directive in the Mobile Phone Industry EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be Mr Vic Clements, BSc, MSc, CEng, MIEE, AIEMA, FInstSMM, EOTC expert Location; Bangkok, Date; 29th January 2004

2. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #2 Objective of Presentation To review the practical issues of implementing the WEEE directive in the Mobile Phone Industry

3. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #3 Definition of WEEE in Mobile Phones Existing practices and flow of waste phones How Articles will be implemented The Mobile Tale Back Forum Codes of Practice for Refurbishing, reselling and recycling mobiles Practical issues of meeting recycling targets Issues to Cover

4. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #4 Mobile Phone Industry in Europe Predicted GSM handset sales in 2004 – 150 million growing at average 5- 7% p.a. 20 million + in UK Typical handset weight – 130g Annual Weight of WEEE phones – 2600 tonnes 3G on horizon Source: Micrologix

5. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #5 Major Issues When does a phone become WEEE? Significant proportion of mobiles currently refurbished and resold Rapid innovation Treatment Design for disassembly and recycling

6. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #6 When does a mobile phone become WEEE? The current industry preferred definition is that a phone is considered waste when it has been assessed and deemed beyond economical repair (Point A ) A working phone or one in the process of assessment or repair is considered to be a “second hand product” and not classified as waste. To be reviewed following input from the Environment Agency Likely to be changed to the point at which it is no longer required and is discarded by the first user (Point B) This has major impact on collection facilities which will need Waste Management Licence

7. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #7 Flow of Waste Mobile Phones A B

8. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #8 Recycling Flows

9. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #9 Refurbish and Re-use

10. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #10 Implementation Issues (1) Product Design –Ease of disassembly –Material choice. Separate Collection (must be separate from other WEEE!) –In store –Mailed in envelopes –Service centres –By Charities or VGs Refurbishment and reuse –Quality and compliance issues

11. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #11 Implementation Issues (2) Treatment –Dismantling and removal of components –Major cost contributor –Identification of material content required prior to treatment Recovery and Recycling –Economies of scale –Pooled resources –Construction limitations –Market for re-cycled materials

12. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #12 WEEE-Treatment of Electrical and Electronic Equipment Separation of hazardous components and materials at end of life including: –Asbestos waste and components containing asbestos –Mercury containing components –Batteries –Printed circuit boards over 10 square cms (all mobiles) –Toner cartridges, liquid and pasty as well as colour –Cathode ray tubes –Liquid crystal displays over 100 square cms –Electrolyte capacitors –Capacitors containing Polychlorinated biphenyls (PCB) –Plastics containing brominated flame retardants –External electric cables

13. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #13 Materials in a Mobile Phone Others: <1 w-% Cr Pb Nd Zn W Al Ag PET Pd Au Sb Ti PA Bi Li Co Zi Be PE Y Courtesy of Nokia

14. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #14 Financing Options – Possible options for Waste Mobile Phones (WMP) Financial Responsibility Article 8 –WMP from households Article 9 – WMP from other than households Historic Waste Put on market before 13 August 2005 Producers to fund historic WMP collectively according to market share Consortium of large producers? Visible fee? Producers to fund when replacing with new products Users to fund otherwise (Amended Article 9) New Waste Put on market after 13 August 2005 Producers to fund “own marque”, with financial guarantees Or possibly through consortium? Producers to fund “own marque” ( Producers and users can agree to other arrangements) Users to fund “orphan “WMP

15. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #15 Provision of Information Article 10 – Information for Users –For new and reused phones Article 11 – Information for treatment facilities – No obligation on producers in UK –Treatment centres will insist on knowing material content – licence conditions Article 12 – Information and Reporting –Individual or consortium reporting to Clearing House

16. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #16 The Mobile Take Back Forum Industry Association Run by Federation of Communications Services Produces guidelines, codes of practice and input to government

17. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #17 Code of Practice for Refurbishment and Recycling of Mobile Phones Aims –Environmental protection, sustainable development and consumer protection –Facilitating compliance with WEEE and all other relevant directives and national legislation –Ensuring UK practices are in line with UNEP directions or guidance –

18. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #18 Grading of Phones for Resale Reusable phones may fall into one of the following categories: 14 Day Returns –In the original box and returned complete with battery charger and manual Refurbished Grade A –In the original box, with an unmarked original case or an unmarked replacement complete with original battery and charger Refurbished Grade B –Used but in good condition and working order, with the original case with or without battery and charger Phones for refurbishing Grade C –Phones that arrive as a handset only or with a battery are repaired and reconditioned, prior to testing and resale Beyond Economic Repair in the UK –Phones that are beyond economic repair in the UK market may be suitable for an overseas market and will be handled according to the Basel convention.

19. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #19 COP for Refurbishers and Repairers of Mobile Phones Process Quality Standards –Registered EMS, ISO 14001 or EMAS –Audited Health and Safety Regime –QMS based on ISO 9001 –Comply with Waste Management Licensing Regulations 1994 –Data Protection –Grade products destined for reuse –1989 Basel Convention on the Control of Trans boundary Movements of Hazardous Wastes and their Disposal and EU Regulation 259/93 on the Supervision and Control of Shipments of Waste –

20. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #20 COP for Recyclers and Reprocessors of Mobile Phones Process Quality Standards –Registered EMS, ISO 14001 or EMAS (Eco- Management and Audit Scheme). –Registered Health and Safety Regime to ISO 18001 –QMS based on ISO 9001 –Waste Management Licensing Regulations 1994. EPA approved Waste Management License will be mandatory –active research into diversion from landfill –Data Protection –comply with the requirements of the WEEE directive on reporting –1989 Basel Convention

21. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #21 Code of Practice for Refurbishment and Recycling of Mobile Phones Safety and standards compliance after repair or refurbishment for reuse –The R&TTE Directive and it's essential requirements –The product design standards (including, but not limited to GSM, 3G or analogue mobile communications systems specifications) –Certification criteria (including, but not limited to Global Certification forum -GCF- and PCS type approval certification review board- PTCRB –the repairer to consult the OEM for guidance on correct tests and test methods –Product compliance and certification policy statement

22. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #22 grEEEn Case Study at Motorola UMTS phone Talon (A820) Life Cycle Phases studied: –Materials Extraction –Component Manufacturing (PWB, ICs, battery, LCD) –Phone Manufacturing (logistics, line, overheads, etc) –Use Environmental Impacts: –Energy (CO2) Life Cycle Costs: –Costs (US$)

23. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #23 Life Cycle Analysis

24. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #24 Observations Materials have highest costs AND environmental impacts –Reduce both at the same time! Manufacturing cost drivers are not environmental impact drivers –Reduction has to focus on cost OR environment Use phase has only environmental impacts –Electricity too cheap? –Provider costs were not taken into account End of life is a limited cost and energy contributor

25. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #25 Main Cost Driver of WEEE Recycling Processing/ recyclingDisposal Palladium Silver Gold +++ ++ + 0 - -- --- Revenues Manual labour Metal recycling Costs Battery removal PWB removal Button- cell removal LCD removal Manual labour Auto- mated removal Shredding, separation Copper Other metals Shred- ding & separation Metal recycling Plastics recycling Plastic recycling Plastic LCD recycling Glass LCD recycling EOL LCD and plastic residue Incin- eration or disposal Manual labour Mobile phone housing opening Process steps of WEEE-conform recycling process Manual labour Use as building material Cement works 133a25a4 3b 6a5c6b5b6c EOL for slack from metal recovery EOL plastic residue (non- brominated) Removal of: Battery, PWB, Button cell (and LCD) Manual dismantling

26. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #26 Recovery and Recycling Targets Achievement of rate of recycling / recovery 65% rate of recycling 75% rate of recovery Required recycling treatment Removal of battery, PWB, button-cell (and LCD) Other requirementsMarking with WEEE- symbol

27. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #27 Achieving the Recycling Rate (65%) Main parts Recycling rate per component 0% Total recycling rate 60-70% 40- 50% WEEE- requirement: min. 65% 80- 90% Housing 15-55 % PWB 20-35 % LCD 1-10 % Residue 20-60 %

28. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #28 Implications for Design Reduction of dismantling costs Optimisation of Recycling Treatment: Enable fast disassembly Reduce manual dismantling 65% recycling rate Optimisation of Recycling Rate: As many parts as possible should be recyclable Fractions to be as pure as possible Weight of the main parts (housing, PWB, LCD) to be maximised The share of non-recyclable parts to be decreased or added to main fractions (housing, PWB, LCD)

29. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #29 Recycling Optimized Design – Battery removal – Active disassembly Optimisation of recycling treatment – Painted Housing – Housing fraction Optimisation of recycling rate

30. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #30 Painted Housing Paint inhibits recycling Pigmented plastic meets customer requirements? Pigmented plastic allows maximal recycling rate of plastic

31. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #31 Housing Fraction Loudspeaker integrated on PWB or integrated in housing Both options commonly used Higher recycling rate when loudspeaker integrated on PWB (PWB fraction larger, plastic purer)

32. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #32 Battery Removal Separate battery and battery door, but can be integrated Both options commonly used Separate battery and battery door have higher recycling rate (plastic fraction higher)

33. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #33 Active Disassembly Automated disassembly using shape memory polymers (ADSM project) Further development of materials and integration into products Faster, more cost efficient disassembly

34. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #34 Conclusions Environmental awareness and legislation (WEEE, RoHS and EuP directives) challenge industry to –Reduce environmental impacts –Reduce life cycle costs to ensure competitiveness Major challenge of WEEE for mobile phones –Achievement of 65% recycling rate –Cost of PWB removal Design changes are necessary for –Achievement of recycling rate –Reduction of manual dismantling

35. EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be EOTC2003© - #35 Summary WEEE directive will have major impact on Mobile Phones Designs will be driven to optimise recycling and ease of disassembly Greater control needed on reuse Major players will need to cooperate Mobile Phones will constitute a separate waste stream

36. Thank you… Please feel free to contact us prospection@eotc.be EOTC aisbl Rue de Stassart, 36 B-1050 Brussels Belgium Tel +32 2 502 41 41 Fax +32 2 502 42 39 Email: estelle.desmit@eotc.be www.eotc.be Questions