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Dec. 09, 2003
LG Electronics to abolish hazardous substances completely by the end of 2004
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-Discloses environment-friendly management strategies
-Responds to Europe and the US using environmental regulations as a non-tariff barrier since ¡°environmental technologies offer a competitive edge¡±
-Complies in advance with EU¡?s guidelines on regulated substances and on the mandating of their reuse-Set to abolish hazardous substances completely by 2004 and prohibit the use of hazardous lead in all products by the end of 2004
Seoul, Korea, December 9, 2003 - Taking vigorous steps to respond to the increasingly stiff environmental regulations of EU, the US, China, and other nations, LG Electronics (LGE) (CEO and Vice Chairman S.S.Kim / www.lge.com) vowed to abolish hazardous substances completely by 2004 and prohibit the use of hazardous lead in all products by the end of 2004.
LGE¡?s Environmental Technology Committee (CTO President, Paik Woo Hyun) is set to conduct environment-friendly activities in response to the international community¡?s increasingly strict implementation of environment-friendly regulations.
The firm announced environment-friendly management strategies such as prohibiting the use of hazardous substances in products by the end of 2004 and maintaining them below the regulated levels, applying Pb-free soldering to all products by the end of 2004, structuring an EU-mandated system to collect and treat waste products, improving the reuse rate, developing environment-friendly products, and expanding the green-purchase system.
¡°Advanced nations such as those in Europe and the United States use their advanced environment-friendly technologies as weapons and control the reshuffling of world trade markets,¡± LGE CTO President Paik Woo Hyun said. According to him, disclosing its environment-friendly management strategies shows LGE¡?s commitment to respond actively to global environmental change and structure an environment-friendly production system.
LGE¡?s environment-friendly management strategies are detailed as follows:
+ Prohibition of the use of hazardous substances in products.
The company completed its laboratories designed to analyse product components that are banned by EU effective July 2006, such as +6 chrome, cadmium, and mercury. Likewise, LGE will develop alternative substances and operate a system to manage hazardous substances by the end of 2004 by implementing stricter product management criteria compared to EU.
+ Applying Pb-free soldering to all products.
The company unveiled its 2003 Pb-free soldering products such as LCD TVs, monitors, washing machines, and air conditioners. It is set to apply Pb-free soldering to all products by the end of 2004.
+ Structuring an EU-mandated system to collect and treat waste products.
In keeping with EU regulations, the company will implement various measures including forging alliances with other companies for the establishment of facilities to lower the costs for collecting and treating waste products (representing 5-6% of sales) by 30% by 2004. It will also structure a system by June 2005 to collect and treat all products sold in the EU market.
+ Improving reuses rates.
To enhance the reuse rates of products and the efficiency of resources, the company will set up its own management criteria to apply strengthened standards. In particular, it will establish its reuse rates, 10 % higher than EU¡?s criteria for reuse rates by product (refrigerators and washing machines: 75%; cleaners: 50%; PCs and terminals: 65%; and TVs and video devices: 65%), by stepping up its own management activities.
In the coming years, the company will evaluate the reuse rates of products vis-à-vis their initial development phases with the end in view of shortening product development periods.
+ Operation of the green-purchase system.
To encourage the implementation of environment-friendly activities among its partners, the company will introduce the green purchase system. Through said system, LGE will purchase only those parts that meet the regulations to block the flow of hazardous substances in the phase of purchasing parts. At the same time, it will prepare support programs for its partners to foster environment-friendly firms.
EU is currently implementing very strict environmental regulations. In February this year, it announced its directive on the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment (RoHS), which seeks to ban completely the use of hazardous substances such as mercury, lead, cadmium, and +chrome in electrical and electronic products starting July 2006. EU also announced its directive on the Management of Waste Electrical and Electronic Equipment (WEEE), which requires producers of electrical and electronic products to collect and reuse waste appliances starting August 13, 2005.
Currently, Korea¡?s appliance exports to EU stand at USD 1.8-1.9 billion units per annum, representing 19% of the total appliance exports. In particular, exports to EU have been on the rise since 1999.
Influenced by these EU environmental regulations, the United States implements strict standards in its federal laws for safety issues such as electromagnetic waves and radiation and hazardous substances such as lead. China is also pushing to legislate a law on the management and reuse of wastes, led by its economic and trade committee.
In the current trade environment where trade regulations are becoming increasingly stiff, nations are using these environmental regulations as a non-tariff barrier in this age when environmental technologies are becoming a competitive edge.
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