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What are the pressing environmental issues for E&E sector?

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What are the pressing environmental issues for E&E sector?-INTRODUCTION

REVIEW REPORT FOR THE ELECTRICAL & ELECTRONIC SECTOR
 
   

1. INTRODUCTION

1.1 Background to The Support Programme

Companies worldwide are facing increasing pressure to provide their goods and services in an environmentally responsible manner.  The risks of not doing so include loss of business and market share through damage to company image, the inability to comply with legislation in local or export markets, and falling behind customer or buyer requirements.  To effectively control the environmental impacts resulted from the operation of a company, the introduction of environmental management is a frequently used tool.  Environmental management also brings a range of potential benefits including cost savings through increased process efficiency, legal compliance and reduced waste, improved staff quality, and improved company reputation.

Small and medium enterprises (SMEs) face the same potential risks and benefits.  In 2001 the Environmental Protection Department (EPD) has completed extensive research into environmental management system (EMS) adoption by SMEs[1] to:



[1]Study on Small & Medium Enterprises (SMEs) in ISO14001 Environmental Management System (EMS) Implementation, led by the Business Environment Council

 

1 Identify the market threats and opportunities to local SMEs resulting from international trends in the adoption of ISO14001 EMS, and investigate the status of ISO14001 adoption by SMEs in Hong Kong;
2 Prioritise the Major Industry Groups (MIGs) of local SMEs (in both the service and manufacturing sectors) which are most at risk or have most to gain from these trends, taking into account social, economic and environmental factors; and
3 Examine the barriers to EMS through detailed case studies in the priority industries, and hence design a support programme to help local SMEs in the selected sectors.

The research revealed growing trends in the introduction of environmental requirements into the supply chain across many sectors.  These included national and international legislation, and policy and procurement requirements from buyer and client organizations, both of which would in time exclude suppliers that did not comply.  Despite this, fewer than 20% of local SMEs recognised the need to or benefits of implementing an EMS, or perceived any potential opportunity loss from not embracing ISO14001.

The electrical / electronic sector (from manufacturing industry) and the construction sector (from the service industry) were identified as the high priority SME sectors.  This is because collectively they ranked highest in terms of the number of establishments, contribution to gross domestic product, size of employment, and environmental problems (energy consumption, waste generation, complaints and convictions, etc) in Hong Kong.  They also faced the greatest supply chain pressures for environmental protection.

As a follow-up of these findings, the Business Environment Council (BEC) was commissioned by the EPD in October 2003 to provide support on Environmental Management Information and ISO14001 EMS for Hong Kong SMEs in (A) the electrical and electronic sector and (B) the construction sector.

1.2 Objectives of The Support Programme

This review report forms part of the support programme for Hong Kong SMEs in the electrical and electronic sector.  A separate review report has also been produced for SMEs in the construction sector (Supply Chain Pressures for Environmental Management and EMS in the Construction Sector, September 2004).

The key objectives of the support programme is to help SMEs in the local electrical and electronic sector to (i) prepare for future supply chain pressures towards ISO14001 EMS, (ii) improve their environmental performance, and (iii) stay competitive in an increasingly environmentally-conscious business marketplace.  The support is being provided through three elements, all of which are provided in English and Chinese:

1 An update on the supply chain pressures for environmental management and EMS in the electrical and electronic sector ("Task 1A", presented in this report);
2 Easy to use Generic ISO 14001 EMS Templates, User Manual and Practical Examples ("Task 2A"), which an SME can use to develop its own ISO14001 Environmental Management System; and
3 An Environmental Management Information and ISO14001 EMS Support website for electrical and electronic sector SMEs ("Task 3A"), from which the Generic ISO 14001 EMS Templates, user manual, practical examples and contents of this report can be obtained.

This Review Report presents the findings from research into the supply chain pressures for environmental management and EMS facing Hong Kong SMEs in the electrical and electronic sector (Task 1A).

1.3 The Structure of this Review Report

The remainder of this Review Report is structured as follows:

Section 2

      

Provides an update on the number and composition by industry type of SMEs in the electrical and electronic sector with operations in Hong Kong and Shenzhen, and identifies the Major Industry Groups (MIGs) to form the basis of Practical Examples illustrating the step-by-step process of EMS development for an SME.

Section 3

Presents current trends in supply chain pressure for environmental management and EMS in the local electrical and electronic sector, focusing on the requirements of large multinational client corporations.

Section 4

Describes the latest and upcoming international requirements to be imposed on the electrical and electronic sector, focusing on developments in Europe, Japan and the United States of America.

Section 5

Identifies the contact details of professional and academic institutions in Hong Kong and the Pearl River Delta (PRD) region that can offer tailor-made expert advice and technical assistance to electrical and electronic sector SMEs on local and international environmental requirements, ISO14001 EMS, and pollution control measures to suit the specific needs of individual enterprises.

Information in this report has been gathered through extensive web-based and literature research, including reviews of corporate environmental reports, trade publications and international circulars, plus consultations with relevant trade associations and interviews with major client companies.  Information sources are provided throughout the report and compiled in Appendix A.

 

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