Though the European Union’s REACH regulation is boggling some electronics-company managers trying to understand its implications, and blinding those not yet willing to face the most comprehensive legislation on chemicals ever introduced, the REACH regulation is busying companies such as Elcoteq. European-based electronics contract-manufacturer Elcoteq already has inventoried all chemicals used in their Hungarian, Romania, and Estonian plants, and systematically extracted from all suppliers of these chemicals a signature committing on-time product registration (pre-registration is through Dec. 1, 2008).

This week I was in Finland working with our clients at Elcoteq and Tellabs. Just as when I visited Nokia my first trip to Finland I noticed among top and middle management a fluent understanding of environmental strategy—a fluency prevalent at electronics companies in The Netherlands, Sweden, Germany, and elsewhere in Europe.

“We grew up in the forests and many of us have summer cottages that are not equipped with modern amenities, and so we learned to be practical—recycling everything we can and burning the rest for energy,” says Minna Aila, Elcoteq’s Director Corporate Responsibility based near Helsinki. “Environmental conservation comes naturally.” She says many global companies – particularly European ones – think of corporate responsibility as encompassing economic, social, and environmental issues–the triple bottom line. (About social responsibility, Aila says she hates the term giving back, “because it means that one is taking something away to begin with.”)

Elcoteq is embarking on the third of three corporate responsibility levels: The first was compliance, the second was realizing that steps beyond compliance can offer a competitive edge, and the third is integration of environmental and social strategy throughout the business. “I don’t know if a company has a DNA,” Aila adds, “but if it did environmental and social strategy would be in the DNA, or backbone, of thinking.” Environmental leadership at Elcoteq reports directly to the CFO, receiving ample corporate priority and commitment. “Environmental thinking has to be understood at the top management level,” says Aila.

European electronics companies receive pressure from both corporate and consumer customers. Most of Elcoteq’s customers are European, and the strongest push comes from customers’ customers—the environmentally-demanding European consumer. The telephone operating companies in Europe are also very concerned; Vodafone, says Aila, provides an example of “stellar corporate responsibility.”

Environmental corporate leadership in Europe is also attributable to environmental superstars in many electronics corporations. Elcoteq’s Global Environmental Manager Aila Valkila, who is driving the company’s REACH proactivity, has an MS in Chemistry and worked as an environmental auditor / consultant for 18 years before joining Elcoteq. Tellabs Oy’s Environmental & Supply-Chain Manager Leo Stranius is the Climate Specialist at the Finnish Association for Nature Conservation, board member at the Finnish Association for Nature Conservation, Associate Researcher of International Policies at Asociación Civil Labor (Friends of the Earth Peru), and chairs Friends of the Earth Finland.

Check out the Helsinki REACH Centre for a helpful REACH-compliance guide for European and non-European companies alike. Also useful is the site for the European Chemicals Agency (also based in Helsinki).

I grew up in the forest as well – sort of. Though I was born in Chicago and lived in Silicon Valley from age 6 on, upon arriving in California my family backpacked in the Sierra Nevada mountain range nearly every summer. We learned to carry only what we needed, take nothing but photos, and leave nothing but footprints. I didn’t know at the time that I was an environmental consultant in the making.

I’m curious: What about your professional / personal background has helped or hindered your company to be environmentally proactive—with REACH or otherwise?

Posted by Pamela Gordon, October 10th, 2008

Filed to Lean Practices

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