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Good Green is Good Business

October 28th, 2009

Yesterday we held the inaugural Green Display Expo in Washington DC with a core group of participants from consumer electronics, professional AV, display manufacturing, regulatory and labeling agencies, and recycling constituencies. The feedback we received was very positive noting the high quality of the presentations, speakers and interactive dialog throughout the day. All agreed that there was a need for continued dialogue.


Chris Chinnock
Senior Analyst and Editor
for Insight Media

So what were some of the key takeaways? There were many, but let me summarize a few here. First, there was some discussion about the definition of a green display. Is a display green if it meets Energy Star goals? If it has an LED backlight? If it is EPEAT or TCO certified? We even suggested there might need to be a Green Display Index that pulls together some of the key features of these labeling programs.

But the bottom line is that today, there is no definition of what makes a display green and no agreed upon benchmarks by which to judge the greenness of a display-based product today or in the future. And, display-based product makers need to consider and/or comply with dozens of labeling, regulatory and legislative initiatives. This needs to be harmonized and is a clear call to action for the industry.

A second key takeaway is that green has different meanings and implications depending on where you are in the value chain. We heard loud and clear from materials, component and panel makers that to them, green means cost reduction. If they use less water, energy or materials in the fabrication of their display-related components, this saves money and can be called a green initiative. If the new product is lighter and thinner, it saves money in distribution and reduces the carbon footprint of the operation - a nice green message. If a product features recycled materials, it can actually reduce costs, and again, can create a very nice green result.

Wrapping cost reductions and bottom line benefits in a green message is not a cynical statement, but a reflection of reality. Having a good green policy is also good for business. This is a very key need: a sustainable green display industry needs to be driven by a healthy business climate. Many of the actions these companies are taking they would do anyway, but getting extra credit for their green aspects is just fantastic.

But this reality is only true for some parts of the display industry like materials, component and panel makers, as well as vertically integrated display-related product makers.

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For more marketed oriented brands, green is a message that can and is used to sell products. If accentuating the green aspects increases product sales, manufacturers will go with the green theme. If they don’t, they will fall back to more traditional marketing themes like features and price to sell products.

So far, the results of selling products based upon the green attributes has been mixed. As a result, there was lively discussion about how to get consumers more interested in the green attributes of products with ideas ranging from incentives (by manufacturer, utilities, governments) to marketing campaigns (think Oprah gushing over her new green TV). Another idea might be to offer leasing programs that allows for upgrades as greener models come on-line. This also helps to solve end-of-life disposal issues by returning used sets directly to manufacturers in a simple takeback system.

This disposal issue is another big challenge facing the industry. One presentation showed maps of the US with all of the various forms and types of electronics e-waste recycling, collection and disposal programs out there. It is a mess, with a patchwork of programs without any federal leadership to harmonize these. This will create confusion for consumers and add tremendous costs for manufacturers who could end up with dozens of programs to administer throughout the US. This
is a big problem with no obvious solution.

Another takeaway was the impact that Energy Star and EPEAT are having. Speakers from these agencies told attendees about their plans for the future, noting that EPEAT is experiencing great success in its certification programs and is now rapidly expanding internationally. Energy Star is also rapidly developing its energy use goals for monitors and TVs to increasingly raise the bar going forward.

There was much, much more of course, but this snapshot should give you a hint as to the magnitude of the issues and the challenges facing the industry. I hope you will join us as we try to highlight these issues going forward and seek to bring positive changes to the display industry on these vital topics.

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