6. CONCLUSIONS
SMEs in Hong Kong's electrical and electronic sector are collectively a
major part of the economy ranking high in terms of number of
establishments, contribution to gross domestic product, and size of
employment. Electrical
and electronic sector SMEs however also account for substantial
environmental concerns (such as air, water and noise pollution,
energy consumption, waste generation and chemical waste) and face
increasing supply chain pressures for improved environmental
management.
This
Review Report has been compiled through internet research,
literature reviews and consultations with stakeholder organizations
to identify:
|
The number and
composition by industry type of SMEs in the electrical and
electronic sector with operations in Hong Kong and Shenzhen
(broken down to three-digit Hong Kong Standard Industrial
Classification, HSIC, codes); |
|
The Major Industry
Groups (MIGs) appropriate for the basis of Practical
Examples illustrating the step-by-step process of EMS
development for an SME; |
|
Current trends in
supply chain pressure for environmental management and EMS, focusing on the requirements of large multinational
client corporations in the electrical and electronic sector; |
|
The latest and
upcoming international requirements to be imposed on the
sector, focusing on developments in Europe, Japan and the
United States of America; and |
|
Professional and
academic institutions in Hong Kong and the Pearl River Delta (PRD)
region that can provide tailored support to local electrical
and electronic sector SMEs. |
Findings are summarised as follows.
6.1 The Size and Composition of the
Electrical and Electronic Sector
According
to the most updated figures from the
Census and Statistics Department (C&SD) and Hong Kong Electrical
Industry Association (HKEIA) the total number of establishments of
SMEs in the electrical and electronic sector with operations in Hong
Kong and Shenzhen was 2,772 and 2942 respectively. As
shown in Table 6.1a below, the vast majority (66%) of
establishments in Hong Kong were associated with just one MIG
(Machinery, Equipment, Apparatus, Parts & Components, n.e.c.,
MIG 386-387), whilst SMEs located in Shenzhen were more evenly
distributed.
Table 6.1a
Electrical & Electronic SMEs with Facilities in Hong Kong and
Shenzhen
|
HK
(Total 2772)
|
SZ
(Total 2942)
|
Activity (I/D and MIG code)
|
Number
|
Percentage
|
Number
|
Percentage
|
Electroplating
(I/D
381802)
|
38
|
1.4%
|
3
|
0.1%
|
OAC Machinery
(MIG
382)
|
301
|
10.9%
|
275
|
9.4%
|
Radio/Communication
(MIG
383)
|
65
|
2.3%
|
528
|
18.0%
|
Electronic Components
(MIG 384)
|
100
|
3.6%
|
820
|
27.9%
|
Electrical Appliances
(MIG
385)
|
58
|
2.1%
|
274
|
9.3%
|
Machinery & Parts
(MIG
386 - 387)
|
1830
|
66.0%
|
580
|
19.5%
|
PSMC & PO Goods
(MIG 389)
|
380
|
13.7%
|
462
|
15.7%
|
6.2 MIGs Appropriate for use as
Practical Examples of ISO14001
The
major industry groups chosen to provide the basis for the Practical
Examples included in the support package, reflecting "real-life" activities and processes undertaken by real SMEs in
the electrical and electronic sector, have been selected by
consideration of:
|
The number of
electrical and electronic sector SMEs in each MIG with
operations in Hong Kong and Shenzhen;
|
|
The significance of
the environmental impacts arising from the manufacturing
activities of SMEs in the different MIGs; and
|
|
The degree of supply
chain pressures (for example, local or international
legislation, client requirements, etc) experienced by SMEs in
the different MIGs.
|
Table
6.2a Ranking of SMEs with Facilities
in Hong Kong and Shenzhen
Activity (I/D and MIG code)
|
Hong
Kong Ranking
|
Shenzhen
Ranking
|
Electronic Components
(MIG 384)
|
1
|
1
|
OAC Machinery
(MIG
382)
|
2
|
3
|
Electroplating
(I/D
381802)
|
3
|
2
|
Machinery & Parts
(MIG
386 - 387)
|
4
|
5
|
Radio/Communication
(MIG
383)
|
5
|
4
|
PSMC & PO Goods
(MIG 389)
|
6
|
7
|
Electrical Appliances
(MIG
385)
|
7
|
6
|
As shown in
Table 6.2a below, the top three MIGs were the same for
SMEs with operations both in Hong Kong and Shenzhen: Electronic
Parts and Components (MIG 384); Office, Accounting & Computing
Machinery (MIG 382); and Electroplating (I/D 381802). Practical
Examples have therefore been provided as
part of the support programme for based on hypothetical companies in
these three industry groups.
6.3
Current Trends in Supply Chain Pressure for Environmental Protection
Multinational
corporations reviewed during the research have included Sony Corporation, Matsushita Electric Group
(Panasonic), Toshiba Corporation, LG Electronics, Samsung
Electronics, General Motors, HP (Hewlett Packard), Intel
Corporation, Whirlpool, Electrolux Group, Nokia and others. Requirements stipulated by these leading clients have been
varied and far-reaching, but can be categorized into six key areas:
|
Compliance with local
and international legislation (with compliance with
legislation in advance of its promulgation in some areas)
|
|
EMS and ISO 14001
certification (preference often given to ISO certified
suppliers, certification mandated in some cases and even
extending to second tier suppliers)
|
|
Eco-Design or
"Design for Environment" to reduce the impacts of a
product throughout its whole life cycle
|
|
Cleaner Production to
minimise the impacts of the product during its production
|
|
Other client-specific
requirements (e.g. environmental audit, questionnaires,
education program and benchmarking exercises)
|
|
Wider-reaching
requirements (going beyond the environment, e.g. labour,
safety and health, sustainability compliance, workers rights,
etc)
|
Those corporations reviewed are considered to be at the forefront of such
initiatives, further reinforcing the need for Hong Kong SMEs to be
prepared for future requirements for improved environmental
performance.
6.4 Latest and Upcoming
International Requirements
The review of latest and upcoming international requirements to be
imposed on the electrical and electronic sector focused on
developments in Europe, Japan and the United States of America.
In each case the key environmental legislation and labeling
schemes have been highlighted. Of particular concern are two recent European Union (EU)
Directives on the
Restriction of Hazardous Substances (ROHS) and Waste Electrical and
Electronic Equipment (WEEE). Both
have been introduced to restrict the types of hazardous substances
in electrical and electronic equipment and require manufacturers to
be responsible for the collection, recovery and recycling of used
products,
respectively.
The
ROHS will ban the sale in the EU of certain categories of electrical
and electronic equipment containing or manufactured using six banned
substances (lead, cadmium, mercury, hexavalent chromium,
polybrominated biphenyls and polybrominated diphenyl ethers) from
the 1st July 2006. The
ban on lead in solders will have the greatest impact on electrical
equipment manufacturers in terms of the work and investment in new
equipment.
The WEEE is designed to tackle the fast increasing waste stream of
electrical and electronic equipment and complements EU measures on
landfill and incineration of waste. Producers will be responsible for taking back and recycling
electrical and electronic equipment, with consumers able to return
their equipment free of charge. This will provide incentives to
design electrical and electronic equipment in an environmentally
more efficient way, which takes waste management aspects fully into
account.
6.5 Sources of Environmental
Support
The study identified more than twenty support
centres in Hong Kong and the Pearl River
Delta for the electrical
and electronic sector. The
services and supports offered by these organizations are diverse and
include the provision of general information, ISO 14001 mentorship,
Eco-design, "Design for Environment" to environmental
technologies support and others. Given the trends of supply chain environmental pressures and
requirements affecting local electrical
and electronic manufacturers being driven by
overseas national environmental legislations, directives and
initiatives, contact details of some overseas sector-specific
environmental information centres have also been provided. In addition, over 80 local consultancies provide construction
related services in areas including environmental auditing,
pollution control, impact assessments, analytical and laboratory
services, training and strategy, and ISO14001 EMS development.
|