by Martin LaMonica
LAS VEGAS--This year's CES sported an expanded showcase for
green-oriented gadgets. But arguably the more significant eco-action
was tucked away in the booths of the consumer electronics industry's
behemoths.
Behind the barrage of wall-to-wall TVs and mobile devices, you can
find "eco-products" from familiar suppliers, such as Panasonic, Sanyo,
Toshiba, Philips, and LG. In the technology-themed areas, such as the
wireless Zigbee zone, there were displays for managing home energy or
more fuel-efficient driving.
Green technologies are clearly still on the periphery of the sprawling
consumer electronics business, but brand name manufacturers say they
are innovating more around energy and environmental sustainability,
driven both by regulations and economic interests.
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Consider the massive Panasonic display at CES, where there was a
room-size area dedicated to energy-related technologies now being
testing in homes in Japan and Denmark. Its purchase of a majority
share of Sanyo gives it access to solar photovoltaic panels, but its
vision is much more encompassing. It's developing home fuel cells that
make electricity and heat water, back-up batteries to store solar
power, and a home energy management system viewed through--you guessed
it--Panasonic TVs.
Panasonic sees energy as a long-term business opportunity, and not one
that only caters to a niche of hard-core eco-minded consumers.
"Consumer electronics is a fairly mature area and we're looking for
new areas of growth, and energy fits into that category," said Mark
Sharp, a group manager in the corporate environmental department of
Panasonic North America. "By 2018, we expect to be a world leader. The
technologies exist and work but the volumes are low and the products
are subsidized."
Right now, though, much of the environmental activity in electronics
is driven by regulations. Global companies have to comply with
hazardous material rules, such as the RoHs directive in Europe or
state-driven electronics recycling laws in the U.S. There are also
voluntary certifications and labels, such as the EnergyStar
power-efficiency label and EPEAT, a rating system that covers
materials, energy, and recycling plans.
Toshiba has a systematic approach to sustainability where managers are
measured on environmental criteria, said Craig Hershberg, director of
environmental affairs at Toshiba America. That's showing up in its
products: Toshiba expects to offer efficient and long-lasting LED
bulbs in the U.S. later this year and plans to phase out the use of
bromide flame retardants and PVCs from all its laptops by April of
this year.
Product designers have to make difficult decisions that balance
eco-features, such as energy efficiency, against other improvements
every day, but the company says it has made sustainability part of is
overall corporate strategy.
"We need this type of system to keep being successful. We need a
sustainable world where people can keep buying products and living
well and we can keep making products," Hershberg said.
Green scene
Consumer demand, too, plays a role in nudging manufacturers to build
environmentally oriented gear. In addition to greener versions of TVs
and laptops, CES showcased energy-efficiency tools and alternative
energy gadgets.
At the Sustainable Planet zone, a number of smaller companies, such as
Regen, Solio, and Solar Power International, showed off solar chargers
with integrated batteries for charging gadgets on the go. There were
other charging alternatives, such as a home fuel cell from Horizon
Fuel Cells and handheld wind-power devices from Kenesis Industries and
MiniWiz.
An area with more emphasis this year was so-called smart plugs that
eliminate stand-by power drawn from home electronics when they are not
in use. Australia-based Embertec showed off prototypes of power strips
designed for PCs and home entertainment systems, where the power strip
shuts off peripherals after a set amount of time. The HiSaver, which
is available now to consumers or businesses, uses a motion sensor or a
pre-set function to turn off stand-by power to peripherals.
Home energy efficiency was a big theme at the Zigbee wireless tech
zone, where a number of smart grid start-ups showed wireless
thermostats and smart plugs. Control4, too, introduced a home energy
management system built around a Zigbee network. These tools help
people stop running appliances that are on but not being used and
allow them to control electronics through a central console or a
smartphone over the Internet.
During a panel I hosted at the Sustainable Planet zone on Friday, the
executive director of EPEAT, Jeff Omelchuck, argued that consumer and
business purchases of certified green products play a "crucial role"
in creating demand and expanding the definition of "green" beyond just
energy efficiency.
Premium or dividend?
Although there's already an established market for eco-minded
consumers, high energy prices make energy-efficiency tools appealing
to a much broader audience, said Don Bartell, the senior director for
environmental initiatives at Motorola, during a panel on energy and
electronics on another panel I moderated.
For the most part, consumers are not willing to pay a premium for
super energy-efficient electronics, panelists said. On the other hand,
most electronics don't have labels to help consumers make decisions
based on energy consumption.
The Federal Trade Commission was tasked with devising labels that will
show consumers how much a TV, for example, will cost to run over the
course of a year. But there's already debate within industry over how
this information will be disclosed, with some in the industry arguing
for an online disclosure rather than in-store labels, according to
Noah Horowitz, a senior scientist at the National Resources Defense
Council.
Environmental regulations have a long history of being contentious and
being opposed by industry. When the California Energy Commission
passed a mandate requiring TV manufacturers to meet certain efficiency
levels, the Consumer Electronics Association, which organizes CES,
said the regulation would stifle innovation and raise costs.
But that's not a universally held view within the industry. The first
California efficiency mandates go into effect in 2011, but
Westinghouse's TVs already meet the more stringent one that goes into
effect in 2013. The company has taken a holistic approach to making
its TVs greener by requiring suppliers to be within a certain distance
of the main manufacturing site and using at least 40 percent recycled
material and soy-based inks in its packaging, said Rey Roque, the vice
president of marketing.
Many measures that are environmentally beneficial have a positive
financial impact, he said. Reduced packaging reduces the carbon
footprint of its operations and saves it money on logistics and
materials, he noted. "Some of our competition are trying to charge a
premium for green, but they shouldn't because it doesn't cost any
more. That will price green off the market," Roque said. "All of the
executive team have kids. At some point, it's just a matter of
conscious."
Environmental watchdog Greenpeace earlier this week released its
latest rankings of the electronics industry, sharpening its focus on
harmful materials. But, Greenpeace actually lowered its ranking for a
number of companies for lagging industry leaders. After spending two
days at CES, Greenpeace's overall conclusion is: "The consumer
electronics industry is getting greener but not quickly enough."