CASE 2

GREENING THE BUSINESS

PARTNERS-
AMKOR TECHNOLOGY
PHILIPPINES 

PRESENTED BY:
Dizon, Richard Dean S.
Galang, Jervin N.
Quindo, Vanessa D.
OUTLINE OF PRESENTATION
 Background of the Company
 Activities and Operations in the Company

 Analysis
 Environmental Aspects and Impacts
 Relevant Environmental Policies and Laws
 Continual Improvement
 BusinessPartners in the Supply Chain
 Employee Participation
 Community Involvement
 Recommendation
Background of the
Company
Background of the Company

 In 1956, Hyang Soo Kim initially incorporated the company in

Korea as Anam Industrial Co. Ltd.

 In 1968, Amkor was established and grew to be the world’s

largest semiconductor packaging and test company.
Background of the Company

 “Anam” was coined from “A” for Asia and “nam” which
means south

 “Amkor” was indicative of the countries from which its owners

came, namely America and Korea
Background of the Company

 Amkor’s services and products support all levels of electronics

 PC’s / Workstations
 Automotive/Industrial components
 Office equipment
 Telecom/Cellular/Pager components
 Semiconductor technologies
 IC packaging
Background of the Company

 Amkor received its ISO 14001 certification in September 1997

from SGS International

 SGS is the company which provides ISO 14001:2004

Environmental Management System certificates. It does not
appear to stand for anything.
Activities and Operations
in the Company
(that may pose Environmental
Issues/Problems)
Activities and Operations
 Dealing with many types of raw materials
(chemicals such as solvents, acids, paints, inks and thinner, wafer die, lead frames,
molding compounds, epoxy and gold wire)

 Utilizing non-renewable resources (such as metals)

 Excess resources and supplies (expired mold pellets)

 Industrial use of water for its operations

 Energy consumption and air emissions during production

Activities and Operations
 Presence of environmental hazards
(odor produced during the production of melamine in the mold operations) (use of
benzene which had acetone)

 Production of solid wastes

 Production of sludge from wastewater treatment

 Packaging of outputs/finished products

 Shuttle buses for transportation (by service providers)

Analysis
Environmental Aspects and their
corresponding Environmental
Impacts
 ASPECTS IMPACTS
Raw materials -Depletion of natural
resources
and Water
Gas/Oil/Electricity -Air Pollution
(during production, -Depletion of Fossil
transportation and distribution)
Fuel
Hazards -Threat to Public
(during acquisition of materials Health and Environment
and production)

Air Emissions -Air Pollution

Solid Waste -Land/Water/Air

(during production and disposal) Pollution

Locality -Threat to public

(Paliko Creek) health and environment
Relevant Environmental
Policies and Laws
Republic Act No. 8749
Philippine Clean Air Act of 1999

 SEC. 13. Emission Charge System.

 The Department shall impose on and collect regular

emission fees from dischargers as part  of the emission
permitting system. The system shall  encourage the
industries and motor vehicles to abate, reduce, or
prevent pollution.
Republic Act No. 8749
Philippine Clean Air Act of 1999

 SEC. 16. Permits.

 The Department shall have the authority to issue 

permits as it may determine necessary for the
prevention and abatement of air pollution.
Republic Act No. 8749
Philippine Clean Air Act of 1999

 SEC. 17. Emission Quotas.

 The Department may allow each regional industrial

center that is designated as  special airshed to allocate
emission quotas to pollution sources within its
jurisdiction that qualify under an  environmental
impact assessment system programmatic compliance
program pursuant to the implementing  rules and
regulations of Presidential Decree No. 1586.
Republic Act No. 9275
Philippine Clean Water Act of 2004

 SEC. 13. Wastewater Charge System.

 The Department shall implement a wastewater charge

system in all management areas including the Laguna
Lake Region and Regional Industrial Centers through
the collection of wastewater charges/fees.
Republic Act No. 9275
Philippine Clean Water Act of 2004

 SEC. 14. Discharge Permits.

 The Department shall require owners or operators of

facilities that discharge regulated effluents pursuant to this
Act to secure a permit to discharge.
Republic Act no. 9003
Ecological Solid Waste Management Act of 2000
 SEC. 30. Prohibition on the Use of Non-Environmentally
Acceptable Packaging.

 No person owning, operating or conducting a commercial

establishment in the country shall sell or convey at retail or
possess with the intent to sell or convey at retail any
products that are placed, wrapped or packaged in or on
packaging which is not environmentally acceptable
packaging.
Republic Act no. 9003
Ecological Solid Waste Management Act of 2000
 SEC. 47. Authority to Collect Solid Waste Management Fees.
 The local government unit shall impose fees in amounts
sufficient to pay the costs of preparing, adopting, and
implementing a solid waste management plan prepared
pursuant to this Act. The fees shall be based on the
following minimum factors:
 (a) types of solid waste;

 (b) amount/volume of waste; and

 (c) distance of the transfer station to the waste

management facility.
Republic Act No. 6969
Toxic Substances and Hazardous and Nuclear
Wastes Control Act of 1990
 SEC. 8. Pre-Manufacture and Pre-Importation
Requirements.

 The manufacturer, processor or importer shall submit the

following information: the name of the chemical
substance or mixture; its chemical identity and molecular
structure; proposed categories of use; an estimate of the
amount to be manufactured, processed or imported;
processing and disposal thereof; and any test data related
to health and environmental effects which the
manufacturer, processor or importer has.
Republic Act No. 6969
Toxic Substances and Hazardous and Nuclear
Wastes Control Act of 1990
 SEC. 13. Prohibited Acts.

 a) Knowingly use a chemical substance or mixture which is

imported, manufactured, processed or distributed in
violation of this Act or implementing rules and regulations
or orders;

 d) Cause, aid or facilitate, directly or indirectly, in the

storage, importation, or bringing into Philippines territory,
including its maritime economic zones, even in transit,
either by means of land, air or sea transportation or
otherwise keeping in storage any amount of hazardous and
nuclear wastes in any part of the Philippines.
Continual Improvement
(Strategies / Actions of the Company)
EMS

 Principle:

 An organization should review and continually

improve its EMS with the objective of improving its
overall environmental performance.
 A. Greening of Business
Partners in the Supply Chain
Business Partners in the Supply
Chain

 A SUPPLY CHAIN is a system of organizations, people,

technology, activities, information and resources
involved in moving a product or service from supplier to
customer.
 AN INTREGRATED SUPPLY CHAIN
INBOUND OUTBOUND
PRODUCTION
LOGISTICS LOGISTICS
Raw and
virgin Output
materials Distribution
Warehousing
New Fabrication Packaging
Vendor
components Storage Assembly Transportation
Supplier and parts Processing
Waste
Recycled,
Disposal
reused
Treatment
materials
and parts

Reverse Logistics Use

Reusable, recyclable
materials and components
Disposal
How did the company do this?

 Organizing many awareness seminars

 Training business partners by organizing regular

supplier/vendor audits on-site

 Guiding them through the documentation process and

recommending programs to meet legal requirements
Inbound Logistics
 Customer Pressure – releasing purchase orders with detailed
environmental requirements
 Green Purchasing

 Philippines’ control list

 Philippine Inventory of Chemicals and Chemical Substances’
list of hazardous chemicals
 Detailed Material Safety Data Sheet
 Giving checklist (legal compliance, MSDS, emergency
preparedness, and progress in environmental initiative
programs)
 Revision code and Incoming Quality Assurance
Inbound Logistics

 Coordinating with suppliers for possible need for

reformulation

 Requesting for change of chemicals/raw materials

Production Phase

 Phasing out of harmful materials

 Using items like plastic trays

 Redesigning of production process

 Installing recycling plant for cooling water

Production Phase

 Reduction programs:

 Chemical/Water Reduction Program

 Solid Waste Reduction Program

 Sludge Reduction Program

Outbound Logistics

 Contractors help in the disposal of different kinds of waste:

 Sludge
 Used batteries
 Solid Waste
 Oil Waste
 Solvent
 Molding compounds
 Solder dross
 B. Ensuring Employee
Participation in Achieving a
Green Supply Chain
Employee Participation
 Participation in the EMS development process

 Initiation of One-Point Lesson

 Designation of “Earth Month” for the company

 Dedication of one column in the company newsletter, Quality

Circuit

 Encouraging its employees to be environment-friendly

C. Reaching Out to Involve the
Community in Greening the
Supply Chain
Community Involvement
 Inviting government agencies and officials for clean up
operations and conducting meetings

 Permanent watcher and cleaner

 Barangay ordinances

 Trolley bins

 Monitor other companies that dumped wastes on the creek

Recommendation
For Inbound logistics

 Updating regularly on the latest list of hazardous chemicals

 Arranging funds to help their suppliers for EMP

 Encouraging the suppliers to use plastic containers and glass

bottles
For Production phase

 Continuous on-site application of 3R’s

 Input substitution whenever possible

 Improving housekeeping practices

 Investing on the utilization of renewable energy

For Outbound logistics

 Green Packaging / Environment Packaging

 Environment-friendly Transportation

 Green Marketing
For Reverse logistics

 If applicable to the field of business, the company can start a

program on giving discounts to those customers who return
packaging and other valuable materials that can be utilized in
the production phase and also by its suppliers.
END OF PRESENTATION