Several factors are motivating this transition to sustainability. More national and global regulations are mandating eco-friendly products with stiff penalties for violators. In many ways, sustainable practices like enforced recycling are economically advantageous. And perhaps the most influential reason is that the public has started demanding greener products, making it a nearly non-optional marketing strategy.

Both Nokia and Sony Ericsson won their top spots by eliminating toxic chemicals from their products and supporting legislation to ban compounds — like chlorinated and brominated flame retardants — across the board. This has turned both companies into thought-leaders in corporate responsibility, enhancing their public image.

Some not-so-prescient manufacturers have hit a wall when it comes to toxic substances. There’s no better example of why this is important than what happened to Palm in the summer of 2006. That’s when the European Union’s Restrictions on Hazardous Substances kicked in, limiting the use of lead, mercury and other compounds. Palm’s Treo 650 smartphone didn’t comply with the new standards, and the company had to stop shipping to Europe. It lost an estimated $20 million and its share price plunged 14 percent. Since then, even more stringent regulations have been discussed, which will inevitably reward manufacturers that are ahead of the curve.

Source: Reuters