Apple has pledged to improve its record on environmental issues following an award-winning lobbying campaign by Greenpeace, which wants the company to go even further.

Steve Jobs, chief executive, announced yesterday that the technology giant is taking steps to stop using toxic chemicals in its computers, displays and iPods.

By 2008, it will have completely removed arsenic from all its displays, and stopped using flame-retardant chemicals and polyvinyl chloride (PVC) in any products. It also pledged to stop using mercury in its monitor backlighting, when this becomes "technically and economically feasible".

Greenpeace has accused the tech company of using toxic chemicals that its rivals have already phased out. But, in a robust defence of the company's performance, Mr Jobs claimed that it had already been taking the issue seriously.

"Upon investigating Apple's current practices and progress towards these goals, I was surprised to learn that in many cases Apple is ahead of, or will soon be ahead of, most of its competitors in these areas," he said, implying that the company was guilty of a communications breakdown rather than being an environmental laggard.

Greenpeace, which set up a website called Green My Apple, had accused the iPod and Mac-maker of endangering children in India and China – where much obsolete technology equipment ends up - by exposing them to dangerous chemicals.

Apple appears to have heeded this call, announcing yesterday that all the environmental waste it collects in North America will be recycled there.

But Greenpeace urged the company to widen this commitment to other countries.

"While customers in the US will be able to return their Apple products for recycling, knowing that their gear won't end up in the e-waste mountains of Asia and India, Apple isn't making that promise to anyone but customers in the USA," said Greenpeace.

"Elsewhere in the world, an Apple product today can still be tomorrow's e-waste. Other manufacturers offer worldwide takeback and recycling. Apple should too!"

Green My Apple won the activism award at the Webby awards this week.