For the past number of years, compliance with the Restriction of Hazardous Substances (RoHS) directive in the European Union and the related conversion to lead-free processes has loomed over electronic product design, sales, and manufacturing in the Ottawa area. Many local companies invested significant money and effort in the scramble to achieve RoHS compliance.

As electronics brand owners and manufacturers emerge from their RoHS ordeals, many are becoming increasingly aware that the EU's RoHS directive was only the first in a litany of environmental standards and legislation that affect their ability to sell their products on the global market.

Often the first warning a company receives of the existence of these new requirements is through a sales channel or distribution partner who demands a particular material declaration, certification, or label. For most Ottawa companies, loss of a global channel partner such as Motorola, Fujitsu, or Nortel has a greater impact on business than loss of a specific geographical market.

European Requirements

RoHS (Restriction of Hazardous Substances Directive 2002/95/EC): Imposes restrictions on lead, hexavalent chromium, mercury, cadmium and polybrominated flame retardants. The RoHS directive came into effect July 1, 2006. However, initial enforcement has been less intensive than anticipated. Enforcement of the RoHS directive by government agencies and channel partners is expected to increase tenfold in the second half of 2007.

WEEE (Waste Electrical and Electronic Equipment Directive 2002/96/EC): The producer of electronics is responsible for end-of-life documentation for safe treatment and recycling in each EU country. For Ottawa brand owners using a global channel partner or distributor, the principal requirement is the provision of proper treatment and dismantling instructions for their products.

Packaging Directive (Directive 94/62/EC) and Battery Directive (Directive 2006/66/EC): These directives impose restrictions on heavy metals in product packaging and in batteries, labelling requirements for batteries, and the "producer" of the packaging or battery is responsible for its end-of-life recycling.

REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals - Regulation (EC) No 1907/2006): Requires registration and documentation of all chemicals imported into or manufactured in the EU. Also known as the "Chemical Directive," REACH is the most comprehensive legislation in the world with respect to the registration and documentation of hazardous effects of chemicals.

Asian Requirements

China RoHS (Measures for Administration of the Pollution Control of Electronic Information Products): The first stage of China RoHS requires inclusion of a table of restricted materials and a label indicating the product's environmentally friendly use period. The scope of products included in the first stage is significantly broader than for EU RoHS. The second stage involves material restrictions and product certifications. The timeline for implementation of the second stage requirements will be specific to each product type with the first timelines expected in Q3 of 2007. For most Ottawa-based manufacturers and brand owners, the immediate requirement for continued sales into China is the "environmentally friendly use period" label, material declaration, and packaging labelling.

Japan Green (Japan Green Procurements Survey Standardization Initiative or JGPSSI): JGPSSI is a standardized method for reporting 25 chemical families of concern. Ottawa brand owners and manufacturers will commonly see JGPSSI in the form of specific requests from customers and channel partners related to these 25 chemical families and their ppm concentrations and uses.

Korea RoHS (Act for Resources Recycling of Electrical/Electronic Products and Automobiles): Korea RoHS is similar to EU RoHS, WEEE, and ELV (End of Life Vehicle) legislations. As with more jurisdictional based environmental requirements, Korea RoHS will have its own material declaration and registration requirements. Korea RoHS goes into effect Jan. 1, 2008.

North American Requirements

Proposition 65 (California Proposition 65, the Safe Drinking Water and Toxic Enforcement Act of 1986, Prop 65): State legislation involving restrictions of over 7,000 chemicals. Prop 65 requires replacement of the named chemicals where possible and specific warnings on the products if they contain these chemicals. The enforcement model for Prop 65 is different than the EU legislations as it allows enforcement by private citizens. Prop 65 has over 1,000 prosecutions per year with an average settlement over $100,000 US. One well known prosecution was of Belden Electronics for lead in electrical power cables. Ottawa brand owners and manufacturers should be concerned about their Prop 65 exposure if their product comes into regular contact with consumers.

California RoHS (California Code of Regulations section 66260.202): EU RoHS compliance required in computer monitors. Extension of California RoHS to a wider range of products is planned for 2010.

State/Province recycling laws: Electronics recycling legislation in North America is principally implemented at the provincial- or state-level. The legislation varies in scope and requirement. Jurisdictions with e-waste recycling legislation include Alberta, B.C., Saskatchewan, California, Maryland and Maine.

As more and more global environmental requirements for electronics emerge, companies failing to keep pace face the risk of lost markets and, more important, lost sales and channel partners.

Bruce Calder is president and chief executive officer of Ageus Solutions, a provider of services and strategies for global environmental compliance. Ageus Solutions was the 2007 Silver Award Winner for New Business of the Year. Bruce was a 2006 finalist for Ottawa Business Person of the Year and a former Ottawa Business Journal Top Forty Under 40.