Join regulatory expert representatives of the industry-recognized EIATRACK service on this one-hour briefing where speakers will share best practices in product stewardship as well as provide an update on key legal developments expected in 2011. Original event date: 3-30-11

1. ENVIRONMENTAL COMPLIANCE,
RISK AND PRODUCT STEWARDSHIP
HOW TO STAY ON TOP OF CONFLICT MINERALS,
REACH, PRODUCT TAKE BACK, AND OTHER
EMERGING GLOBAL ISSUES
W e d n e s d a y, M a r c h 3 0 , 2 0 1 1

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3. Meet the Speakers
Paul E. Hagen
Principle
Beveridge & Diamond, P.C.
Scott Wilson
Content Solution Strategist
IHS

4. Environmental Compliance, Risk
and Product Stewardship
March 30, 2011
Paul E. Hagen
Beveridge & Diamond, P.C.
(202) 789-6022
phagen@bdlaw.com
www.bdlaw.com
The purpose of this presentation is to provide you with current information on product law
policy and regulatory developments. It is not intended as, nor is it a substitute for, legal
advice. You should consult with legal counsel for advice specific to your circumstances.

5. Overview
• Product-Focused Environmental Requirements
and Trends
• Conflict Minerals and Sourcing
• Ensuring Compliance and Market Access
• Expanding Extended Producer Responsibility
(EPR) Mandates
• Tracking New Requirements
5

6. Product-Focused Environmental
Regulations: Overview
• New generation of
environmental laws aimed at
products rather than ―end-of-
pipe‖ pollution
– New product design mandates
– Substance restrictions
– Energy efficiency
– Take-back mandates
• Emerging sourcing/CSR
legislation
• Keeping pace with new and
evolving requirements in
multiple jurisdictions
• Identifying and managing risks
6

7. Expanding Regulation Throughout
Product Life-Cycle
Raw Market
Manufacture Distribution Access
Materials
and Design / Logistics
Sourcing
Conflict Material Dangerous RoHS, Energy Efficiency,
Minerals Restrictions, Goods Rules Safety Standards,
Energy Efficiency, Packaging / Chemical Notifications
Supply Chain Labeling
Collection,
Reuse, Recycling
Take-back Laws, Export
7
Bans, Basel Convention

8. Key Drivers of Product-Focused
Environmental Requirements
• Governments
• RoHS, REACH, Material Bans, GHS, Green Chemistry
• NGOs
• Greenpeace ―Scorecard‖ and the ―SIN List‖
• Retailers
• TESCO - Carbon Labeling
• Customers
• Green Awareness and Preferences Increasing
• Environmentally Preferable Government Procurement
(e.g., EPEAT)
8

9. Materials Sourcing Requirements
• New focus on materials sourcing
– Conflict minerals
– Timber and plant products
– Conservation concerns (e.g., Palm oil in Indonesia,
proposed Pebble Mine)
• New supply chain management challenges and
public expectations
9

10. “Conflict Minerals” Law
• Dodd-Frank Act, section 1502
• SEC to promulgate regulations requiring annual
reporting for manufacturers if
– ―conflict minerals‖ (or metals derived from them)
– are necessary for functionality or production of product
• Not a prohibition, but disclosure and transparency in
supply chain
10

11. U.S. Conflict Minerals Legislation
• Concern: Funds from mining of certain minerals providing
financial support to conflict in Democratic Republic of Congo
• Goal: Use market power of downstream users to limit financing
for conflict through supply chain transparency and disclosures
• New U.S. law: Section 1502 of the Dodd-Frank Act imposes
reporting requirements on SEC-reporting companies that make
products containing certain minerals, if they are necessary for
functionality or production of products
– Columbite-tantalite: Tantulum
– Cassiterite: Tin
– Wolframite: Tungsten
– Gold
• SEC to promulgate rules by April 15, 2011, although delay is
possible following an extended comment period
11

12. Conflict Minerals - Requirements
1 2 If Yes or Cannot Tell, 3
Annual SEC Disclosure Report / Identify: Other Key Provisions:
• Description of measures
to exercise due diligence
on source and chain of
custody of minerals
• Reports audited by
Determine whether • Any products that are independent auditor
products contain not ―DRC conflict free‖
―conflict minerals‖ (i.e., products that • Audit must be
produced in DRC or contain minerals that certified
adjoining countries finance or benefit armed • Report posted on
groups) company website
Reasonable country of • Facilities used to • Option: label
origin inquiry process conflict minerals products ―DRC Conflict
(i.e., smelter) Free‖
• Country of origin
• Information on efforts to
determine mine of origin
12

13. Supply Chain Example
Product production
Connector
production
PCB production
Gold bonding Gold plating
Solder paste solution
production wire production
production
Tin refining
Gold refining
Tin mining
Gold mining Gold recycling
13

14. Implications
• Minimum due diligence standards still unclear, but:
– Will require assessment of products that contain conflict minerals, and
engagement with suppliers
– Will generally require traceability to ―approved‖ smelters that use
audited/certified supply chains
– Industry-wide efforts (EICC and ITRI) to adopt sectoral standards for
smelter validation
– OECD Due Diligence Guidance
• Labeling, marketing and competitive differentiation:
– Companies can label products ―DRC conflict free‖
– Customers likely to demand ―DRC conflict free‖ products
– Government procurement – California
• Companies must disclose/report on first fiscal year after
promulgation of rules
14

15. RoHS and Substance Restrictions
• Concern among governments, NGOs, and
public re hazardous substances in products
• Proliferation of substance restriction
requirements for electronics, toys and other
products (e.g., mercury-containing products)
• Emerging Green Chemistry Initiatives
• Rapid, global expansion of requirements
presents market access and supply chain
challenges
• New international initiatives: SAICM and
Mercury Convention
15

16. EU RoHS Directive
• Imposes concentration limits on 6 substances in
wide range of electronic products
– Mercury, 0.1%
– Lead, 0.1%
– Cadmium, 0.01%
– Hexavalent chromium, 0.1%
– Two types of Brominated Flame Retardants
(BFRs), 0.1%
• Very influential – directly incorporated into many
non-EU legal regimes, and clearly the model for
many others
• Exemptions by product application
• Exclusions based on scope, e.g.
– Batteries (but see EU Batteries Directive)
– Spare parts (for pre-July 1, 2006 equipment)
16

17. EU RoHS II
• RoHS Recast agreed
– Approved by Parliament Nov. 2010
– Council expected to approve in 2011
– Binding when transposed by Member States, by late-2012
• Recast will not expand the list of restricted substances
• But will streamline process for future amendments
• Monitoring & control instruments, medical devices and cables
in scope
• New open scope covers all EEE unless specifically exempted
• New mandatory disclosure obligations will require ―immediate‖
reporting of non-compliant EEE
• New CE-marking requirements for manufacturers
• Not superseded by REACH: must be ―coherent‖
17

18. RoHS Worldwide
18

19. US RoHS Laws
• RoHS in government procurement standards
– Federal EPEAT
– NYC Procurement Standards
• State RoHS Legislation
– California RoHS
– New Jersey RoHS
– Various RoHS reporting requirements
• State-level substance-specific restrictions
19

20. U.S. State-Level Materials Restrictions –
Total Enacted Laws
140
120
100
80
60
40
20
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010/2011
Source: EIATRACK (http://www.eiatrack.org/p/416) 20

21. Comprehensive Mercury Legislation
21

22. BFR Restrictions
22

23. Toxics in Packaging
23

24. Batteries Restrictions
24

25. DOT Rulemaking on Transport of
Lithium Batteries
• U.S. DOT engaged in rulemaking that is likely to impose
substantial new requirements on transport of lithium
batteries, especially by air (including if shipped in
products)
• Draft final rule now at OMB for review
– Final rule expected soon for part of proposal (bringing rule in line
with international standards)
– New proposed rule will re-propose controversial issues (e.g.,
dropping exemptions for small batteries)
25

26. EU REACH Regulation
• Regulation on Registration, Evaluation, Authorisation and Restriction of Chemicals
• Not just chemicals: has implications for electronics importers:
– Registration of substances if >1 tpy and intended for release
– Notification of substances of very high concern (―SVHCs‖) in articles, if >1 tpy,
and >0.1% (6 months after SVHC listing, beginning June 1, 2011)
• Electronics ―suppliers‖ (includes retailers) must communicate to recipients (other
than consumers) regarding SVHCs in articles, if >0.1%, effective upon listing
– Must include name of substance and info on safe use when provide the article
– Must provide info to consumers within 45 days of request
• Authorization requirements for certain high-risk substances
• Effect is to broaden supply chain management requirements beyond RoHS,
because companies need content and concentration information for broad range
of substances
• Currently 46 SVHCs, 15 of which have been recommended for authorisation,
including several in electronics (4 phthalates, HBCD, diarsenic trioxide &
pentaoxide, short-chain chlorinated paraffins, and tributyltin oxide)
26

27. END-OF-LIFE AND
PRODUCT TAKE-BACK ISSUES
27

28. Product Take-Back
• European Union
– EU Directive 2002/96/EC on Waste Electrical and Electronic
Equipment (WEEE) (recast currently underway)
• United States
– 24 distinct state laws
• Canada
– Provincial laws create take-back obligations
– No mandatory federal law
• Latin America
– Rapidly expanding federal, state, or municipal laws
• Asia / Pacific
– China (China WEEE)
– South Korea (Resource Recycling Act)
– India (Draft E-Waste (Management and Handling) Rules 2010)
28

29. Product Take-Back
• Targeted Products
– Batteries
– Waste Electrical and Electronic Products (WEEE)
• Common Elements
– Condition for sale of new products
– Registration (manufacturers, collectors, recyclers)
– Administrative and/or implementation fees
– Labeling and consumer information
– Collection programs
– Performance requirements & reporting
29

30. U.S. State E-Waste Legislation
30

31. Key Elements of EPR in
Latin America
• E-Waste Focus, Increasing to WEEE
• Manufacturer/Importer Responsibility
• Limited Government/Distributor Role
• Management Plans (Permit)
• Consortia/Individual Entity
• Hazardous Waste Presumption
• Registration/Certification Requirements
• Free of Charge to Consumer
• Take-Back Quotas
• Waste Minimization/DfE
31

32. EPR in Latin America, Enacted
• Brazil
– National Solid Waste Policy (Aug. 2010): framework law, establishes ―reverse
logistics‖ requirements
– National Solid Waste Policy Regulation (Dec. 2010): establishes rulemaking
process
– CONAMA Draft WEEE Resolution: status unclear
• Colombia
– 3 Producer Take-back Resolutions (July/Aug. 2010): Batteries, Computers &
Fluorescent Lamps: take-back quotas
• Costa Rica
– E-Waste Management Regulation (May 2010): comprehensive producer take-
back program
– National Solid Waste Law (July 2010): proposed hazardous waste regulation
potentially overlaps with e-waste regulation
• Mexico
– General Waste Law (2003) and Regulation (2006): framework for take-back of
special management wastes, including some e-wastes
– Pending regulations on management of hazardous and special management
wastes, expected in 2011
32

33. EPR in Latin America, Pending
• Argentina
– Several proposed WEEE-RoHS bills on national & provincial
levels
• Chile
– National Waste Bill in draft from includes e-waste take-back
• Ecuador
– Hazardous waste regulation proposed in 2009 included some e-
wastes; little progress in 2010
• Peru
– E-waste regulation, with producer take-back, proposed Feb.
2011
• Venezuela
– National Solid Waste Management Law (Dec. 2010): framework
law, includes e-waste take-back; regulation due by Dec. 2011
33

34. Latin America – E-Waste Take-
Back Initiatives
34

35. EPR in Latin America: Conclusions
• E-waste take-back here to stay
• Dynamic regulatory atmosphere
• Key final (or near final) initiatives
– Brazil, Colombia, Costa Rica, Mexico
• Key pending initiatives, possible advance this year
– Argentina, Chile, Ecuador, Peru, Venezuela
• Infrastructure key regulatory compliance barrier
• Export logistics can be challenging
• Allow significant lead time for compliance
35

36. Compliance Challenges
• Challenges in Tracking & Managing Disparate Programs:
– Where are there laws?
– What products are covered?
• WEEE, Computers, Monitors (> 9‖ or > 4‖ in size), Televisions, Printers . . .
– How does the program work?
• Manufacturer-operated? Shared Responsibility? Advance Recovery?
• What level of collection is required?
– When are requirements ―due‖?
• Each law operates on its own timeline - effective date, registration, fees,
reporting, program year
– Who must the recovery program serve?
• Consumers, businesses, non-profits, school districts
– Additional Requirements?
• RoHS-like provisions
• Responsible Recycling Provisions
36

37. Exports of Used and EOL Products
• Basel Convention parties moving to
classify more used/end-of-life products as
hazardous wastes
• Draft technical guidelines on electrical
and electronic waste to be considered at
COP-10
• Increased logistical challenges, trade
bans and compliance costs for managing
used and end-of-life electrical and
electronic equipment world-wide
37

38. New E-Waste Guidelines
• Draft Technical Guidelines on Transboundary Movement
of Used Electronic and Electrical Equipment and E-
waste, in Particular Regarding the Distinction Between
Waste and Non-waste Under the Basel Convention
(comments due June 30, 2011)
• Draft PACE Overall Guidance Document on
Environmentally Sound Management of Used and End-
of-Life Computing Equipment (forthcoming)
38

39. Refurbishment, Reuse,
Warranty Returns
• Parties to the Basel Convention are deciding whether
exports of used electrical and electronic equipment for
repair, refurbishment and reuse are products or wastes
– Wastes subject to control and trade bans?
– Used products outside Basel?
– Warranty returns, refurbishment, off-lease equipment?
• Risk of new export bans on shipments for legitimate repair
and refurbishment from the U.S. and EU to non-OECD
39

40. Risk Mitigation: Regulatory Tracking
• EIATRACK http://www.eiatrack.org/
– Web-based regulatory tracking tool
– Directed by leading electronics manufacturers
– Product-related environmental measures in key
markets world-wide
• Facilitates communications and compliance:
– Internal teams (global, regional, country, product)
– Trade and business working groups
– Technical consultants and legal counsel
40

41. Beveridge & Diamond, P.C.
• Largest firm focused primarily on environmental law and
litigation
• Longstanding product stewardship practice
• Counsel to leading IT companies and trade associations
• Global network of local environmental counsel
• More at www.bdlaw.com
41

42. Scott Wilson
Content Solution Strategist
March 2011
Copyright © 2011 IHS Inc. All Rights Reserved. 42

43. About IHS Inc.
A Leading Information Provider
• Founded in 1959, IHS is a leading source of information and expert analysis in pivotal
areas shaping today’s global businesses
• Employs 4,400 colleagues in 30 countries who speak 50 different languages
• IHS customers include nearly 70% of the US Fortune1000 and 80% of the Global
Fortune 500
• Tens of thousands of customers and hundreds of thousands of end-users in over 100
countries
• Public (2005) NYSE: IHS
• FY10 revenue $ 1,075 million
Copyright © 2011 IHS Inc. All Rights Reserved. 43

44. Compliance needs are Explicit and Implicit
a disruptive shift in the market changes supply chain behaviors
Explicit Needs
•Demonstrate Sustainability
•Comply with Regulations
Explicit
Requirements •Prove Ethical Supply Chain Management
•Meet Contract Obligations
Customer
Requirements
•Design and Redesign the Supply Chain
e.g. Regulations  Standards  Parts
Implicit Needs e.g. EU ROHS  IPC  IPC 175x
Indirect Materials, Counterfeits Obsolescence •Navigate Constrained Supply
Implicit MRO and Chemicals Management Management
Requirements •Mitigate Obsolete Part & Manufacturing
•Manage Rising Price & Lead Times
Semiconductors and Standards & Design Methods
•Avoid Counterfeit Parts
Components Regulations
Copyright © 2011 IHS Inc. All Rights Reserved. 44

45. Example: Japan scenarios addressed by IHS
What are the supply chain impacts of the Japan earthquake?
Client Scenario(s) : “How will this impact my supply chain?”
What are my regulatory obligations and Conflict Minerals Origin: Conflict-free tantalum.
exposure to U.S. or California conflict
minerals positions?
Supply Flow: Tantalum capacitors, have already
Which commodities do I use that rely on been in short supply now for over 12 months.
Explicit: Conflict tantalum, gold, tin, or tungsten? What
Minerals Tracking products do I use these in? Impact and Implications of Global Production:
• Global Reaction to Crisis will See Panic Buying
Where are my raw materials,
Creating Shortage and Pricing Issues
manufacturers, and suppliers located? Was
• Rolling Power Outages and Logistical Issues
any Japan production ceased or
Expected for the Next Several Weeks
compromised?
• Production Disruption of Critical Materials such
as Poly Silicon, Photo Resists & Resins
What shortages should I expect? Will price
• Components Impacted Include
and lead time increase? Should I buy parts I
NAND
need immediately to mitigate risk?
DRAM
Standard Logic
If needed, where can I locate and secure
Filters
alternate sources of these parts? Should I
Inductors
redesign my product?
High-Value and High-End Aluminum and
What parts will be discontinued by Ceramic Capacitors
manufacturers? Have any been discontinued MOSFETs
already? Which ones?
Likely Rise in Counterfeit Part Activity:
How do I avoid counterfeits? Do I have any Just prior to Japan quake, the senate launched
today that I don’t know of? What specific congressional investigation counterfeit parts risk.
lots of parts are counterfeit? Among reasons, a 2010 study by the Commerce
Department found the problem of counterfeit parts
If a highly constrained supply chain touched nearly 40% of the DoD's parts supply
Implicit: Risk of persists – or parts were discontinued – what chain, and was getting worse.
Counterfeit Parts safer open market part sources exist?
Copyright © 2011 IHS Inc. All Rights Reserved. 45

46. We’ll Show You: Free Offer for Attending Today
Must email ProductMarketing@IHS.com or our exit survey to qualify.
Client Scenario(s) : “How will this impact my supply chain?”
What are my regulatory obligations and Conflict Minerals Origin: Conflict-free tantalum.
exposure to U.S. or California conflict
minerals positions?
Supply Flow: Tantalum capacitors, have already
Which commodities do I use that rely on been in short supply now for over 12 months.
Explicit: Conflict tantalum, gold, tin, or tungsten? What
Minerals Tracking products do I use these in? Impact and Implications of Global Production:
•Global Reaction to Crisis will See Panic Buying
Where are my raw materials,
Creating Shortage and Pricing Issues
manufacturers, and suppliers located? Was
•Rolling
EXPLICIT: FREE ACCESS TO Power Outages and Logistical Issues
any Japan production ceased or
IHS EIATRACK REGULATORY for the Next Several Weeks
Expected
compromised?
TRACKING SOLUTION. •Production Disruption of Critical Materials such as
Poly Silicon, Photo Resists & Resins
What shortages should I expect? Will price
•Components Impacted Include
and lead time increase? Should I buy parts I
NAND
need immediately to mitigate risk?
DRAM
Standard Logic
If needed, where can I locate and secure
Filters
alternate sources of these parts? Should I
Inductors
redesign my product?
High-Value and High-End Aluminum and
What parts will be discontinued by Ceramic Capacitors
IMPLICIT: FREE ANALYSIS OF
manufacturers? Have any been discontinued MOSFETs
already? Which ones? ELECTRONICS FOR EXISTING
COUNTERFEIT RISK. Likely Rise in Counterfeit Part Activity:
How do I avoid counterfeits? Do I have any Just prior to Japan quake, the senate launched
today that I don’t know of? What specific congressional investigation counterfeit parts risk.
lots of parts are counterfeit? Among reasons, a 2010 study by the Commerce
Department found the problem of counterfeit parts
If a highly constrained supply chain touched nearly 40% of the DoD's parts supply
Implicit: Risk of persists – or parts were discontinued – what chain, and was getting worse.
Counterfeit Parts safer open market part sources exist?
Copyright © 2011 IHS Inc. All Rights Reserved. 46

47. Dynamic Nature of Extended Supply Chains
Your supply chain operates in the dynamic context of external forces…
Regulations: Part Trends Product Trends: Application Markets
• RoHS • Technology • Technology Unique Trends & Pressures
• WEEE • Demand • Features • A&D
• REACH • Supply • Cost • Consumer
• Conflict • Obsolescence • Energy Efficiency • Medical Dev.
Minerals • PCNs • Competitive • Telecom
Material Component Mfrs. Demand Product Mfrs. End Users
Mfrs. (OEMs and EMS)
Supply
Materials
Products
Components
Product Stewardship and Economy Supply Costs
Extended Producer • Market volatility • Natural Disasters • Supply
Responsibilities • Product demand • Raw Materials • Energy and Shipping costs
• Regulated Materials
Dynamic Context
Copyright © 2011 IHS Inc. All Rights Reserved. 47

48. Electronics Example: EU RoHS Transition
Continuity of product lifecycles, supply chains, and markets
Product Lifecycle Stages
Maturity
Decline
Growth Phase-Out
Introduction Obsolete
The Supply Chain Problem
Optimizing supply to meet demand.
Business Pressures Influencing
Products
Products Drivers of innovation and lifecycle decisions.
Parts/Materials
Copyright © 2010 IHS Inc. All Rights Reserved. 48

49. RoHS Transition Forced Lifecycle Changes
2M+ new parts, major part changes, and over 20% of EOL in ‘06-07
End of Life (EOL)
Specific to RoHS/Pb-free Environmental Compliance
EOL
Transition to RoHS
2003 2004 2005 2006 2007 2008 2009
Product Change Notices (PCN)
Specific to RoHS/Pb-free Environmental Compliance
PCN
2003 2004 2005 2006 2007 2008 2009
New Product Introductions (NPI)
Specific to RoHS/Pb-free Environmental Compliance
NPI
2003 2004 2005 2006 2007 2008 2009
RoHS in Force July 1, 2006
Copyright © 2010 IHS Inc. All Rights Reserved. 49

50. The Ripple Effect of RoHS was Costly
Ripple effect of product trimming to shortages and counterfeits…
Ripple Effect Economic downturn… …shortage… …fake parts…
… RoHS compliance
…mission failure!
As Shown By Key Performance Indicators (KPI)
Product Lifecycle Planning, KPI: Increase in EOL, KPI: Rise in KPI: Rise in Counterfeit
Predict Obsolescence Indicate Shortages Price/Lead Time Incidents
End of Life (EOL)
Specific to RoHS/Pb-free Environmental Compliance
Maturity
Decline
Growth Phase-Out
Introduction Obsolete
2003 2004 2005 2006 2007 2008 2009
Copyright © 2011 IHS Inc. All Rights Reserved. 50

51. EU REACH is Expected to be MORE Costly
European Commission roadmap includes 106 priority SVHC by 2012
“Airbus UK’s director of operations and
compliance, said the cost of REACH had
been evaluated at several million Euro over
three years, with provisions up to hundreds
of millions of Euro over five years”…
“…[He] said there is a level of ambiguity
because it will depend ‘on the substances
that will finally be added to the candidate
list and in Annex XIV’. Airbus UK has set its
2009 REACH budget at some EUR12 million.”
Source: “EU and industry REACH different conclusions”, Jane’s, September 2009
Copyright © 2011 IHS Inc. All Rights Reserved. 51

52. Explicit: Fines for REACH non-compliance
by country and type (administrative vs. criminal)
Copyright © 2011 IHS Inc. All Rights Reserved. 52

53. Implicit: REACH supply implications felt already
Materializing within manufacturer EOL decisions
Gross EOL by MONTH 2008 Gross EOL by YEAR ENDING 2004 - 2009
EOL by MFR due solely to
EU REACH SVHC 619 demand/sales forecast.
Lehman files Published
Chapter 11
206
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2004 2005 2006 2007 2008 2009
Economic Recession and Chemical Restrictions:
The two most dominant factors in the 300% increase of End of Life (EOL) for electrical components exiting 2008.
Source: IHS Component Insight, 2010
Copyright © 2011 IHS Inc. All Rights Reserved. 53

54. But… This goes way beyond RoHS & REACH
Disruptive ripple effect throughout global supply and demand balance
Bisphenol-A “BPA Free” China RoHS Customer RFP
Full Material Disclosure
EU RoHS Recast Energy Priority Declarable Substances List
(ASD PDSL)
Toxic Substances Control Act (TSCA) Waste Greenpeace
Health Canada / Canada’s Chemical
SIN List - Substitute It Now! Management Plan
EU REACH & SVHC
Security US California Proposition 65
Hazardous ISO 14064 GHG Standards
DEHP-Free Norway PoHS
UN Stockholm Persistent
Substances Organic Pollutants (POPS) Air Safety
Argentina RoHS Product Content Disclosure
EU RoHS and WEEE Thailand’s ―RoHS‖
EU Battery Directive
Directives Japan Green ENERGY STAR Carbon Disclosure Project (CDP)
Volatile Organic Compounds
US FDA
Electronic Product Environmental Natural Resources
Regional Greenhouse Gas Initiative (RGGI)
Assessment Tool (EPEAT)
Health
PCF - Product Carbon Footprint
Conflict Minerals
Water Lifecycle Assessment (LCA)
EU Medical Device Directive
Environmentally Preferred Products (EPP)
US EPA Executive Orders
Copyright © 2011 IHS Inc. All Rights Reserved. 54

55. Product Implications: Redesign & Innovation
Supply Chain, Lifecycle, Engineering, Sales, Operations
REACH REACH REACH
SVHC Reporting Starts Phase 1 Reg. Deadline Phase 2 Reg. Deadline
RoHS Directive
Requirements Start RoHS
REACH
Pre-Registration Recast
2006 2007 2008 2009 2010 2011 2012 2013
Past Today Future
Existing Product Future Product
Portfolio Portfolio
Analysis of existing portfolio products with respect Design / Redesign with respect to
to: • Environmental Compliance
• Environmental Compliance • Supply Chain
• Supply Chain • Product Sustainability
• Product Sustainability • Brand
• Social Responsibility
• Inventory optimization (avoid E&O)
• Risk Avoidance and Management
Copyright © 2011 IHS Inc. All Rights Reserved. 55

56. What to do: Regulations Tracking with EIATRACK
Currency and P-D-C-A change management are essential
• What regulations affect your products?
• Proposed, pending, enacted legislation?
• Challenge:
• What regulations must your products comply
with?
• What are your state’s take-back requirements?
Copyright © 2011 IHS Inc. All Rights Reserved. 56

57. What to do: Mitigate Risk—Parts and Materials
Content Sourcing or Assessment of parts and materials
PLM, BOM Product
Mgmt., Info Sync, Mfr.
Compliance Internal Mfr. Trending DB
Mgmt. Database Corp
Parts
Processing XRF
and
Clarifications Reference Databases
(3rd Party and Incoming
Consortiums) Inspection
Internal or 3rd Party
www.url.com
Direct
Mfr.
Sourcing
Web Sites
Part
Mfr.
Internal or 3rd Party Sourcing
Parts Lists
Information Flows Physical Flows
Copyright © 2011 IHS Inc. All Rights Reserved. 57

58. What to do: Mitigate Obsolescence and Design Risk
Track and manage risk due to material composition changes, EOL Notices
IHS® PCNalert Summary Index for Mar 29, 2011 ( 9 Notices )
Countdown From
Manufacturer Alert Type Affected Parts DocumentID Action Date
Mar 29, 2011 (days)
PCN -Assembly
Vishay Dale PCN-DR-003-2011
Process Product 40 Sep 04, 2011 159
Electronics Rev 0
Families
Description
1) Resistive Ink Material obsolescence: Replace Dibutyl Phthalate with Dibutyl Sebacate as the solvent; and replace Antimony
with Titanium as the TC modifier. 2) Dielectric Glass material change: Continuous Improvements for improved acid-resistance.
REASON FOR CHANGE:1) Resistive Ink Material obsolescence driven by RoHS and SVHC initiatives. 2) Continuous
Improvement on the dielectric glass (passivation over the resistive layer) for increased acid-resistance during plating.
International Suspected
1 20110321-01 ,
Rectifier Corporation Counterfeit Notice
Description
IHS & ERAI would like to inform you of reported substandard or suspected counterfeit part activity in the market concerning
the part.
PCN -
Molding Other
EPCOS 48 110315IN1e Jul 31, 2011 124
RoHS/WEEE
Compliances
Description
Discontinuation of present molding material in yellow color announced by the material supplier. Switch over to new, black molding
material to ensure continuous supply of products to customers. New molding material has halogen content level below 900
ppm and black color.
Copyright © 2011 IHS Inc. All Rights Reserved. 58

59. What to do: Mitigate and Avoid Counterfeit Risk
Track and Manage Counterfeit Part Risk
Copyright © 2011 IHS Inc. All Rights Reserved. 59

60. What to do: Electronics Compliance
Steps to take to mitigate implicit and explicit risk
• Regulations Tracking with EIATRACK
Track Regulations Currency and P-D-C-A change management are essential
Mitigate Compliance • Mitigate Risk of Non-Compliance —Commercial Off the Shelf
(COTS) Parts
Risk for COTS Parts Information Sourcing
Mitigate Compliance • Mitigate Risk of Non-Compliance—Custom Mechanical Parts
Risk for Custom Parts Internal Specification; Industry Standard or Branded Sourcing
Mitigate Obsolescence • Mitigate Obsolescence and Design Risk
Track and manage risk due to material composition changes,
& Design Risk EOL Notices
• Mitigate and Avoid Counterfeit Risk
Avoid Counterfeits Track and Manage Counterfeit Part Risk
Copyright © 2011 IHS Inc. All Rights Reserved. 60

61. In Summary: Manage Explicit and Implicit
It is critical
• What is industry’s role in this?
• ―We must all hang together, or
assuredly we shall all hang
separately‖
• —Benjamin Franklin
• Why the supply chain?
• ―Ninety percent of leadership
is the ability to communicate
something people want‖
—Dianne Feinstein Well-known public quotes referenced to reinforce
themes in this presentation. They should not be
construed as agreement or endorsement.
Copyright © 2011 IHS Inc. All Rights Reserved. 61

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63. Questions & Answers
Paul E. Hagen
Principle
Beveridge & Diamond, P.C.
Scott Wilson
Content Solution Strategist
IHS

64. For More Information
Send questions and requests for information to:
Webcasts@ihs.com