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| Green consumerism in the US is here to stay (photo: Wal-Mart Stores, Inc.) |
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The race for green logistics, building and manufacturing in the United States and a renewed commitment to global sustainable initiatives provided the positive face of the Obama administration’s huge stimulus package. More than resonating with Americans’ anxiety about their lifestyles and their children’s future, it gave focus to the massive spending binge aimed at keeping the US economy on track.
The tide of enthusiasm for green, however, has a strong undertow: a recent tightening of the US regulatory framework governing consumer products is pushing for compliance with green initiatives. The issue is not only being championed by Democrats; Republican legislators also see votes in sustainable issues that relate to jobs and health.
At the same time, volatile oil prices and continued instability in the Middle East and other oil-producing regions have hastened a new US strategic outlook. The emphasis is squarely on conservation and alternative sources of renewable and non-renewable energy.
These issues are due to be played out in the US Congress for some years to come, and trade is set to be the lightning rod for government policy.
Filling the Void
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Transport is just one sector that
will be affected by tighter US environmental laws
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State governments across the US, meanwhile, have been compelled to fill the legislative and regulatory vacuum left by the federal government, which has generally been reticent to regulate on the environmental impact associated with consumer and other products.
Legislation and regulation at the state level primarily cover environmental issues that improve consumer product safety, but also have a positive effect on the environment. These include: the use of hazardous substances in electrical and electronic devices; commercialisation of incandescent light bulbs; sales of mercury-added products; use of phosphorous in dishwasher detergents and potential restrictions on the free distribution of retail plastic bags.
US companies have often opposed unilateral environmental restrictions on their products and have fought many battles in court. Occasionally, however, they have been persuaded to reach a mutually acceptable compromise with state regulators, especially on issues where there is evidence of an environmental hazard and public opinion is overwhelmingly in favour of regulatory action.
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Into the Recycling Bin
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There is currently no national framework to handle the volume of e-waste generated by US consumers. This has encouraged the emergence of numerous mandatory recycling programmes for electrical and electronic equipment at state and local levels, imposing a burdensome compliance requirement on manufacturers.
As a first step, the US House of Representatives approved legislation last April to authorise the Environmental Protection Agency to award grants for electronic waste reduction research, development and demonstration projects.
Such research must focus on:
- Increasing the efficiency of and improving e-waste collection and recycling
- Expanding uses and applications of materials recovered from e-waste
- Developing and demonstrating alternatives to using hazardous and potentially hazardous materials in electronic devices and their production
- Developing methods to identify, separate and remove hazardous and potentially hazardous materials from electronic waste and to reuse, recycle or dispose these materials safely
- Reconsidering product design and assembly to improve refurbishment, reuse and recycling of electronic devices
- Conducting life-cycle analyses of electronic devices, including developing tools and methods to assess the environmental impact of the production, use and end-of-life management of electronic devices
- Developing product design, tools and techniques to extend the life cycle of electronic devices, including promoting their upgrade and safe reuse
- Developing strategies to increase the awareness, consumer acceptance and practice of responsible recycling and reuse for e-waste.
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Such increasingly vocal and stringent requirements clearly favour competent manufacturers, who are able to produce the required green products. But they discriminate or even bar market access to suppliers who fail to act accordingly. So it’s essential that Hong Kong exporters keep up to date with existing and prospective green-product requirements in order to sell in the US market.
Hong Kong manufacturers are becoming more environmentally responsible, aware that green manufacturing, despite higher costs, offers a distinct competitive advantage. In fact, green manufacturing enhances a company’s corporate image, sales and profits.
Labelling Sells
Products entering the US increasingly need to fulfil certain environmental requirements. These include hazardous substances in electronic devices, recycling for electrical and electronic equipment, energy-efficiency standards and import requirements for plant and plant products.
Many regulatory requirements related to environmental performance of products were introduced in the last few years – and this trend is set to continue at both federal and state levels.
In many instances, the US green requirements involve the use of environmental labels. While Hong Kong manufacturers must comply with any compulsory labelling regulations, they are also advised to adhere to such voluntary labelling programmes as ENERGY STAR.
Environmental labels are also a form of promotion for those rigorously taking part. They’re an invaluable and effective means of communicating the environmental merits of products, helping consumers to identify green products and enabling suppliers to tap the US green market more effectively.
With product innovation, environmentally friendly alternatives can be developed for virtually any type of product. Nonetheless, Hong Kong manufacturers should focus on product categories where demand for green alternatives is increasing, especially noting two key trends: energy efficiency and the minimising of hazardous substances contained in consumer products and their end-of-life wastes. It means putting more resources into product design and development to address these crucial trends.
Greening Environmental Management
Hong Kong manufacturers can benefit by integrating environmental management into their entire supply chain management activities. There is, for example, room to strengthen purchasing activities that involve reduction, reuse, recycling and substitution of materials. Working closely with suppliers will certainly help Hong Kong manufacturers oversee their input sources.
By forging more cooperative relationships with major suppliers, Hong Kong sub-contractors will be in a better position to meet tough US regulations. And that’s good news, because green consumerism in the US is here to stay.
For more details, see the HKTDC Research report: “Riding on the Green Manufacturing Trend – A Review of US Environmental Regulations,” which can be ordered at http://www.hktdc.com/bookshop.
