Transcript Investor Relations

Environmental
Initiatives
Worldwide
What they are and how
they impact you
Creating Manufacturing Efficiency. Accelerating Your Profit.
Training Topics
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The Concern
The Focus
The Legislation
The Primary Substances
The Products Covered
Legal Requirements vs. Customer Requirements
Brooks Current Status
Next Steps and the Roadmap to Compliance
Copyright 2007 by Brooks Automation, Inc.
The Concern - What is driving
environmental change?
 The number of disposable electrical and electronic
equipment (EEE) is increasing very rapidly
 Cell phones, PDAs, laptops, desk tops, printers, other
office and mobility products
 Toasters, coffee makers, sandwich machines,
household appliances, televisions
 End of life usually means the trash can and then
the land fill
 There is not enough voluntary recycling
Toxic waste material is getting into the waste stream
and into natural resources – land, water, air
Copyright 2007 by Brooks Automation, Inc.
The Focus – What products are
affected?
 Consumer products
 Products that are replaced often
 Products that are disposed of easily
 Office products
 Office machines that are replaced due to obsolescence
 Machines that are no longer needed
 Industrial products
 Production equipment, tools
 Anything from hand tools to very large machines
Virtually any electrical or electronic
product is covered by this legislation
Copyright 2007 by Brooks Automation, Inc.
The Law
 All legislation is similar but there are key
differences
 Some are aimed at consumer products only
 Some allow exemptions based on equipment type
 Some allow exemptions based on equipment
function
 Some do not allow any exemptions
Worldwide Requirements are similar more than they differ.
Copyright 2007 by Brooks Automation, Inc.
The Primary RoHS Substances
 The focus is on Heavy Metals
 There are 6 basic substances:
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Lead
Mercury
Cadmium
Hexavalent Chromium
PBB (used in plastics as a flame retardant)
PBDE (used in plastics as a flame retardant)
These are known health hazards
Copyright 2007 by Brooks Automation, Inc.
The Primary RoHS Substances
 There is a Maximum Concentration Value (MCV)
for each of the substances
 MCV for all is .1%, except for Cadmium which is
.01%
 MCV is based on the lowest homogeneous part of
the product
 Homogenous level has a uniform composition and no
further separation by mechanical action (such as
unscrewing, cutting, brushing or grinding) can be
accomplished. Chemical separation is not allowed
These limits are the same for all current requirements
Copyright 2007 by Brooks Automation, Inc.
Products Covered
 Varies by legislation
 EU RoHS has 10 categories of electrical and electronic products
based on EU WEEE Directive
 EU RoHS currently exempts:
 Large Scale industrial Tools (as part of Category 6 products they are
exempt from WEEE and therefore also RoHS)
 Medical Products – Category 8
 Control & Laboratory Products – Category 9
 China has a list of EIP – Electronic Information Products – that
covers most of the known electrical and electrical products today
 This is for Phase 1; different list will be used for Phase 2
 All others are a subset of one of the above
Basic requirement is that the product use electricity
Copyright 2007 by Brooks Automation, Inc.
RoHS Comparison Chart
EU
CHINA
JAPAN
KOREA
USA
STATES
Implementatio
n Date
Currently in Effect
Phase 1 in
effect
Currently in
Effect
January 1,
2008
CA – in
effect
Legally
required
action at this
time
LSIT – none
Cat 9 – none
Cat 6 (other than LSIT) –
currently in effect
Disclosure
by EPUP
label and
information
table
No Legal
Requirement at
this time
Disclosure and
prohibited use
per Tables
None
(will be
same as EU
? ? ?)
Disclosure,
prohibited
use and
mandatory
recycling
Products
Covered
1 - Large household
appliances
2 - Small household
appliances
3 - IT and
telecommunications
equipment
4 - Consumer equipment
5 - Lighting equipment
6 - Electrical and
electronic tools (with the
exception of LSIT)
7 - Toys, leisure and
sports equipment
8 – Medical Products
9 - Monitoring and control
instruments
10 – Automatic Dispensers
As Listed in
the EIP
(if it uses
electricity
assume it is
covered)
Japan RoHS
Consumer
Products
-------Japan’s Green
Initiatives
covers all
products and
uses JIG-101
as the
restrictive
document;
covers any B2B
product as
requested by
the customer;
also requires
ISO 14001
Certification
Same as EU
(???)
Electrical &
Electronic
Products
including
components
California
CRT, LCD,
Plasma
Displays ≥
4” diagonal
display
Copyright 2007 by Brooks Automation, Inc.
Vehicles
including
components
May only
include high
volume
waste
products –
yet to be
determined
“Not covered
if they are
part of
industrial,
commercial
or medical
equipment”
OTHERS
Work is in
progress in
Australia,
Canada, New
Zealand and
26 US cities
and States.
US will most
likely follow
California.
Australia will
probably
follow EU
RoHS.
Canada is
monitoring
the US and
EU
RoHS Comparison Chart
EU
Substances
Covered
CHINA
JAPAN
USA
OTHERS
Same As EU
Lead
Cadmium
Mercury
Chromium VI
Pending
Future
legislation
Lead
Cadmium
Mercury
Chromium VI
PBB
PBDE
Same As EU
Maximum
Allowable
Level
Cadmium ≤ 0.01%
All others at ≤ 0.1%
Same As EU
Same as EU for
RoHS + JIG 101
values
Same As EU
Same
As
EU
Exemptions
Allowed
Based on application
to and approval by EU;
exemptions allowed for
substances necessary
for product function
(lead in X-rays,
mercury wetted relays,
etc.
None
None
If elimination of
hazardous
substance is
extremely
difficult due to
Special
Characteristic
Of products
concerned or
there is no
substitute, and
for R&D and
products for
Export
As
allowed
by the EU;
Copyright 2007 by Brooks Automation, Inc.
Same as EU plus:
KOREA
JIG = JIG A + JIG B
JIG A = ( EU + 8)
JIG B = (+9)
Also if
Substance
use is
required to
Meet
safety
standards
Pending
Future
legislation
RoHS Comparison Chart
EU
Compliance
Drivers
CHINA
Legally required for
covered products
Legally
Required
Competitive Position
Competitive Position
JAPAN
KOREA
Customers who
have adopted a
“Green
Procurement”
program
Will be
legally
required
for covered
products
Competitive
Position
Competitive
Position
US
Legally
required for
Covered
Products
ISO14001
Comments and
Notes
Cat 8 and Cat 9 will
probably be included in
RoHS by 2010-2012
LSIT may be the topic
of a future EU
consultation report
(~2012)
Copyright 2007 by Brooks Automation, Inc.
Phase 2 will
require
restriction on
substance use
but in a smaller
product listing
Catalog will be
created for
product list
Customer Driven
as noted above
Support
Legislation
not yet
released
Does not
affect
Business to
business
Products
Environmental Timeline
2006
ID
Task Name
Q1
1
EU WEEE
8/15/2005
2
EU RoHS
7/3/2006
3
China RoHS Phase 1
3/1/2007
4
China RoHS Phase 2
1/1/2009
5
Japan JIG-101
1/2/2006
6
Korea RoHS
1/1/2008
Copyright 2007 by Brooks Automation, Inc.
2007
2008
2009
Start
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
anticipated date
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Status
What Brooks is currently doing
and what we will be doing next to bring our
products into compliance with legal
requirements and customer expectations
Copyright 2007 by Brooks Automation, Inc.
How are we doing this?
 The Green Initiatives Steering Committee was formed to:
 Analyze and document the external threats and opportunities
emerging from environmental regulations
 Develop and champion strategies necessary to sustain business in
light of these emerging issues.
 Create internal programs intended to meet or exceed our customer’s
expectations for environmental compliance
 Use the opportunities resulting from these initiatives to distinguish
Brooks as an environmentally friendly company.
 Working Groups:
 This committee established Working Groups to address specific
environmental topics such as China RoHS.
 There are representatives from each Division on the Steering
Committee and Working Groups.
 These Divisional representatives then work within their Working
Groups to develop and implement plans, with review and approval by
the EHS Steering Committee and Senior Management.
Copyright 2007 by Brooks Automation, Inc.
How are we doing this?
 Green Initiatives Working Groups:
 RoHS Marketing WG for all Divisions (TBD)
 They will determine product status and roadmap, per the earlier slides
 The Material Content WG through Global Sourcing interfaces with our
suppliers to get the information we need in the form we need it.
 Materials Declaration WG to work with IT to determine the tools needed
to get the information from our suppliers into your ERPs
 WEEE Registration WG is responsible for evaluating and implementing
registration for certain products in EU member states.
 ISO 14001 WG is responsible for planning and execution of ISO
certification.
Copyright 2007 by Brooks Automation, Inc.
Brooks Automation
Environmental Policy
Development of a Environmental Policy Statement:
“Brooks Automation recognizes that the protection of the
earth's environment is one of the most important issues
for all mankind.
We are committed to protecting the environment for our
Customers, Partners, Employees, Friends and
Neighbors in the workplace and the community.
We are committed to complying with environmental laws
and regulations that affect our products worldwide.”
Copyright 2007 by Brooks Automation, Inc.
Current Compliance Status by
Region – European Union
 RoHS – Position papers has been issued for
TAD, GCS and VPD Products.
 Most products are out of scope as “Large Scale
Industrial Tools”
 Continue to monitor EU activity for any changes
in current legal requirements.
 WEEE – Working Group has been formed to
complete the Registration for some VPD
products (GP & CTI) in selected EU states.
 GP products contain the EU WEEE symbol,
indicated “not to be disposed of as trash”
Copyright 2007 by Brooks Automation, Inc.
Current Compliance Status by
Region - China
 Phase 1
 Brooks products shipping directly to China are compliant
with Phase 1 requirements: EPUP label, MCV Table and
Spares Identification.
 We continue to monitor status in China for problems or
scope change
 We will do a review in July to see if we need to change
anything in our current process
 Working with various industry groups (SEMI Asia RoHS
WG, ASTM F40 (Materials Declaration and Testing)
 Position Paper Issued (www.brooks.com)
 Phase 2
 Monitor progress in China
Copyright 2007 by Brooks Automation, Inc.
Current Compliance Status by
Region - China
 EPUP label: All EIP products to be used in China require
a label indicating the ”Environmentally Protected Use
Period”. This is a period in years during which the product
will not degrade, causing pollution.
 For products containing no RoHS materials above the Maximum
Concentration Values (MCV):
 For products containing one or more RoHS materials above the
MCV:
 These labels are applied on the product and on the
packaging.
 Draft Guidance Document is out for review
Copyright 2007 by Brooks Automation, Inc.
Current Compliance Status by
Region - China
 The Divisions make their own business based decisions
for product labeling:
 They can label all products they ship, or
 If they know which ones go to China then can only label those
 If a Brooks product is being shipped to a customer not in
China it may not be labeled (depends on above decision)
 If the customer then ships it to China it is now a
component of their system
 They have to label their end product
 We will provide content information to them upon request.
Copyright 2007 by Brooks Automation, Inc.
Current Compliance Status by
Region - China
 Spare parts, replacement parts, or parts for upgrade are
out of scope of China RoHS based on the MII’s China
RoHS FAQ
 Stamps or labels may be added to the shipping
documentation to indicate that the shipment contains
Spares, Replacements or Upgrade parts:
这些是零配件,维修用零件,更换用零件
THESE ARE SPARE PARTS, REPAIR
PARTS OR REPLACEMENT PARTS
•这些零件用于设备升级
THESE PARTS ARE TO UPGRADE
AN EXISTING INSTALLATION
Copyright 2007 by Brooks Automation, Inc.
Current Compliance Status by
Region - China
 A table (in Mandarin) is added to the User Documentation.
 Brooks declares presence of all 6 RoHS substances,
unless we have sufficient evidence that these substances
are not present.
 The table includes the top level product and one level
below.
表1 有毒有害物质或元素名称及含量标识格式
部件名称
真空机器手包括:
MagnaTran® 7 vacuum robot includes:
铅(Pb)
汞(Hg)
X
X
有毒有害物质或元素
六价铬 多溴联苯 多溴二苯醚
镉(Cd)
(Cr(VI))
(PBB)
(PBDE)
X
X
X
X
机器手驱动本体
Robot drive body
X
X
X
X
X
X
机器手臂组合
Arm assembly
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
机器手终端受动器组合
操作包
End effector assembly
Operating package
O:表示该有毒有害物质在该部件所有均匀材料中的含量均在SJ/T11363-2006规定的限量要求以下
X:表示该有毒有害物质至少在该部件的某一均匀材料中的含量超出SJ/T11363-2006规定的限量要求。
Copyright 2007 by Brooks Automation, Inc.
Current Compliance Status by
Region - Japan
 We remain “legally” out of scope with
current Japanese legislation
 Customer driven Green Initiatives programs
are requesting:
 RoHS/JIG-101 product compliance or roadmap
 A plan to achieve ISO 14001 certification
 Demonstration of corporate social responsibility.
Copyright 2007 by Brooks Automation, Inc.
Current Compliance Status by
Region - Korea
 Act for Resource Recycling of Electrical and
Electronic Equipment and Vehicles Legislation
released in early April, 2007
 Translation available at
http://www.kece.eu/data/Korea_RoHS_ELV_April_2007_
EcoFrontier.pdf *
 Supporting legislation has not been released yet
 Korea RoHS begins on January 1, 2008
 Scope covers:
 Electrical and Electronic Equipment - equipment or
device (including components and parts thereto)
operated by electric currents or electromagnetic fields.
 Vehicle - means an vehicle (including components and
parts thereto) as provided in Article 2, Section 1 of the
Automobile Management Act.
*Courtesy of Eco-Frontier
Copyright 2007 by Brooks Automation, Inc.
Current Compliance Status by
Region - Korea
 Definitions:
 Electrical and Electronic Equipment equipment or device (including
components and parts thereto)
operated by electric currents or
electromagnetic fields.
 Vehicle - means an vehicle (including
components and parts thereto)
Copyright 2007 by Brooks Automation, Inc.
Current Compliance Status by
Region - Korea
 Article 9 (Restriction on the Use of Hazardous Substances
and Concentration Limits)
 Among electrical and electronic equipment or vehicles which
generates high volume of waste after use, any person who
manufactures or imports electrical and electronic equipment
prescribed by the Presidential Decree (hereinafter, producers or
importers of electrical and electronic equipment) and who
manufactures or imports vehicles prescribed by the Presidential
Decree (hereinafter, manufacturers or importers of vehicles) shall
comply with the concentration limits of such hazardous
substances as heavy metals and flame retardants, which are
stipulated by the Presidential Decree and have high potential of
environmental pollution, so as to promote recycling of electrical
and electronic equipment and vehicles. Provided that this shall
not be applicable in cases that the elimination of hazardous
substance is extremely difficult due to special characteristic
of products concerned or there is no substitute, as
prescribed by the Presidential Decree, and in cases of
research and development or export of products.
Copyright 2007 by Brooks Automation, Inc.
Current Compliance Status by
Region – United States
 State legislation is aimed at the
consumer market, not at business to
business – for now
 Primary focus is on lead and mercury
 Some states limit use of certain
substances, but most US State
legislation is concerned with recycling
 One information source for US State
legislation is the Northwest Product
Stewardship Council
(www.productstewardship.net)
Copyright 2007 by Brooks Automation, Inc.
US Legislation by State –
Enacted and/or Pending
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California
Connecticut
Hawaii
Illinois
Iowa
Louisiana
Maine
Maryland
Massachusetts
Minnesota
Nebraska
Copyright 2007 by Brooks Automation, Inc.
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New Hampshire
New Jersey
New York State
New York City
North Carolina
Pennsylvania
South Carolina
Rhode Island
Utah
Vermont
Washington
Next Steps
Let’s talk about what needs to be done
to achieve legal compliance
and customer satisfaction
Copyright 2007 by Brooks Automation, Inc.
Legacy Products
 Marketing must determine the future status of legacy products
 Will or are they being sold in Japan, China, etc.?
 Will they be become EOL in a reasonable time?
 Is there a product to replace them?
 Question to ask before determining material content
 For specific products or for specific customers?
 Do you charge a NRE?
 Need to provide the customer with a plan and milestones
 We will or will not get the information for the specific product
 Do you only report it or do you bring the product into compliance?
 Who will pay for it?
Copyright 2007 by Brooks Automation, Inc.
New Product Development
 RoHS compliance must be in the product
specification for all new products
 Redesigned products should fall into this category
as well
 Do you include JIG-101 information as part of the
requirements?
Copyright 2007 by Brooks Automation, Inc.
What do you need to know and
when do you need to know it?
 Material Content & Declarations
 For JIG-101, China Phase 2, possibly EU RoHS, and other
pending legislation you will need to determine the material content
in your products
 Expect to get only one chance with your suppliers
 You need to determine what information you need and what format
you want it in. i.e
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Only RoHS substances?
Should you include JIG-101 Table A and Table B?
Some other combination?
IPC format or other
Time line for this information
Copyright 2007 by Brooks Automation, Inc.
Everyone has a role
 Operations need to evaluate RoHS compliant tools (solder,
coatings, etc.) and processes
 Sourcing will be asked to find RoHS compliant alternate
components
 Engineering will evaluate the alternate components and test the
form, fit, function
 Quality will assure the reliability, safety, and product performance
are maintained and verify processes.
 Documentation Control needs to decide how to identify
compliant components.
 Marketing, when confronted with the cost of bringing legacy
products into compliance, has to consider end of life vs. redesign
options.
Copyright 2007 by Brooks Automation, Inc.
And then…
If you do your homework and implement correctly you
will be ready for new environmental legislation.
It will take planning and a few years to get it all done.
Create, Implement and Maintain processes and
prepare for the next environmental opportunities.
Copyright 2007 by Brooks Automation, Inc.
Summary
RoHS is NOT going away
RoHS will impact all more and more products
We all have a role in obtaining and maintaining
RoHS Compliance.
Copyright 2007 by Brooks Automation, Inc.
And now it’s your turn
Questions?
Thanks for your attention.
Copyright 2007 by Brooks Automation, Inc.