Parker Hannifin Corporation Environmental, Health, and Safety Report 2000

Transcription

1 Parker Hannifin Corporation Environmental, Health, and Safety Report 2000

2 Preface This is Parker s second Environmental, Health, and Safety (EHS) Report. Since our last report in 1998 we have grown from 190 manufacturing facilities worldwide to 248 today. Significant acquisitions during this period include Gresen Hydraulics, Commercial Intertech and Wynn s International. We face many integration challenges with these acquisitions in assimilating them to the Parker Hannifin EHS culture. We are very proud of our accomplishments in the EHS arena which includes outstanding reductions in emissions under EPA s 3350 program, ISO certification, good compliance, and positive external review of our program. We realize, however, that there is always room for improvement and it is this that drives us towards the future. Many challenges await us in the future. The continued customer drive for EHS accountability will lead us to more third party certifications of our environmental management systems; increased regulation of product lifecycle will lead us to integrating EHS into the production and design phase of our products; and our ever increasing global manufacturing will lead us to globalizing our EHS metrics and measurements for the organization. Exciting challenges for the exciting future of Parker Hannifin. The data and information gathered is accurate to the best of our knowledge. Some data reporting is only through 1999 due to the period of time between reporting and the production of this report. Data for acquisitions are not incorporated into Parker s data until the year of the acquisition going forward. If you have any questions or comments please direct them to Rick Taylor, Director of Environmental, Health & Safety, Parker Hannifin Corporation, 6035 Parkland Blvd., Cleveland, Ohio Rick Taylor Director Environmental, Health & Safety Parker Hannifin Corporation May, 2001 Page 2 of 19

3 Table of Contents Summary 4 EHS Policy 5 Company Profile 6 EHS Organization 7 Pollution Prevention 8-12 Health & Safety 13 Compliance Education, Awareness, & Training Recognition & Awards 18 Page 3 of 19

4 Summary Parker Hannifin has achieved excellent results in pollution prevention, compliance, resource reduction, and training. While we continuously strive to improve our efforts the key accomplishments to date are outlined below: 96% reduction in chemical emissions under US EPA s SARA 313 program from our baseline year of % reduction in the generation of hazardous waste under US EPA s RCRA program for large quantity generators from our baseline year of Environmental, Health, and Safety (EHS) audits completed globally from 1999 to EHS coordinators from every U.S. manufacturing facility trained in Calendar Year Five Parker facilities ISO certified. 25% reduction in Total Accident Rate with Lost Workdays in the US. Total Accident Rate below the Bureau of Labor Statistics (BLS) average for the Transportation Equipment Industry and the Fabricated Metal Products Category. Page 4 of 19

5 EHS Policy Available at Parker Hannifin s Environmental, Health, and Safety Policy Parker Hannifin Corporation recognizes and believes in the importance of safeguarding natural resources and the global environment. We are committed to our employees, our communities, and our customers: their health, safety and understanding of the need for environmental stewardship. We are committed to the concept of continuous improvement in environmental performance. Accordingly, we are committed to the following principles: We will seek to comply with environmental, health, and safety laws on a worldwide basis. We strive to minimize or eliminate the generation of waste. We will monitor compliance with environmental, health, and safety regulations. We will strive to conserve the use of natural resources. We will train employees to comply with environmental, health, and safety requirements. We will respond to the environmental concerns of our employees and the communities in which we operate. We will implement written procedures to carry out these principles. Duane Collins Chairman and CEO Rick Taylor Director Environmental, Health & Safety Page 5 of 19

6 Company Profile With more than $6 billion in annual sales, Parker Hannifin Corporation is the world s leading diversified manufacturer of motion and control technologies, providing systematic, precisionengineered solutions for a wide variety of commercial, industrial and aerospace markets. The company s products are vital to virtually everything that moves or requires control, including the manufacture and processing of raw materials, durable goods, infrastructure development and all forms of transport. Parker is essential to the new economy, providing the mission-critical technologies for automation, computer production, telecommunications and semiconductor fabrication. Traded on the New York Stock Exchange under the symbol PH, Parker is strategically diversified, value-driven and well positioned for global growth as the industry consolidator and supplier of choice. Parker Hannifin Corporation 6035 Parkland Blvd. Cleveland, OH Phone: (216) Fax: (216) Page 6 of 19

7 EHS Organization Every Parker Hannifin manufacturing facility has at least one designated environmental, health, and safety (EHS) coordinator. Some facilities have more than one person, and some facilities use a committee. The EHS coordinator at each location is responsible for EHS matters at the facility. Every plant manager and/or business unit manager is responsible for ensuring that the facility has the appropriate resources to maintain the EHS program. The Corporation provides a highly trained EHS technical support group located in the corporate office for the facilities to use as required in their EHS efforts. The corporate group has nine individuals, each possessing certain areas of expertise. In addition there is a person located at the European headquarters who provides EHS technical support in Europe and Asia. The Corporation maintains an EHS Steering Committee which is comprised of top management from the company. This group meets annually to discuss policy, procedure, and strategy for the Parker Hannifin EHS program. The Corporate Director of Environmental, Health, and Safety presents the progress against goals for the previous year and plan for the following year at this meeting. This plan is then disseminated through to the EHS coordinators in the manufacturing facilities through training, awareness, and the communication channels established internally. The Corporation has established a European EHS Steering Committee which is comprised of top management from the European headquarters as well as from the Corporate headquarters. This group also meets annually to discuss policy procedure and strategy for the organization specific to Europe, Asia, and Australia. Page 7 of 19

8 Pollution Prevention Toxic Release Inventory (TRI) and EPA s 3350 Program The Toxic Release Inventory (TRI) is an EPA Initiative that requires manufacturing facilities to report their emissions of hazardous chemicals to the environment. The threshold for reporting is based on a minimum production or use of a reportable chemical in a calendar year. The list of reportable chemicals is maintained by US EPA. In 1988, EPA established a program in which they asked manufacturing companies to voluntarily commit to reducing emissions of 17 target chemicals by 33% in 1992 and 50% by These 17 chemicals and compounds are a subset of the over 400 chemicals regulated by EPA as reportable for emissions under TRI. The program came to be called the 3350 program. The target chemical list is provided below. 111 Trichloroethane Mercury & compounds Cyanide compounds Benzene Methyl ethyl ketone Methylene chloride Cadmium & compounds Methyl isobutyl ketone Lead & compounds Carbon tetrachloride Nickel & compounds Trichloroethylene Chloroform Tetrachloroethylene Xylenes Chromium & compounds Toluene Parker Hannifin was one of a number of companies that committed to meeting the 3350 program goals. In 1988, the baseline year, Parker reported 1536 tons of release and transfers of TRI chemicals and compounds from 78 of our manufacturing facilities domestically. Of these reported emissions, 999 tons of the total were target chemicals and compounds from the 3350 program. Year TRI Compounds Transfers and Releases (tons) Percent Reduction from Baseline Year 3350 Program Transfers and Releases (tons) Percent Reduction from Baseline Year Baseline 999 Baseline % 44 96% % 20 98% % 22 98% % 27 97% Parker reported 63 tons of TRI releases from 41 facilities in 1999, a 96% reduction in the release and offsite transfer of reportable chemicals. This reduction was achieved through aggressive source reduction, material substitution, waste minimization, and chemical management at the manufacturing facilities. What is even more significant is that only 27 tons of that total were 3350 compounds, which represents a 97% reduction in emissions under the 3350 program. What really makes this achievement impressive is that during the period of 1988 to 1999, Parker Hannifin sales grew by 235% and the number of manufacturing facilities increased by roughly 250%. EPA recognized the significance of our success nearly five years ago and made us a model profile of the 3350 program in However, we didn t rest on our laurels in 1994 and have continued to reduce our emissions to the environment. Page 8 of 19

9 Pollution Prevention Reduction in Emissions 1800 TRI (SARA 313) Baseline Year Tons Emitted sara 313 epa Year Page 9 of 19

10 Pollution Prevention Hazardous Waste Generation Parker Hannifin has an active waste minimization program in which we strive to eliminate waste that cannot be reused or recycled in some beneficial way. This program has successfully resulted in the reduction of hazardous waste generated by Parker. In 1991, Parker had 36 manufacturing facilities domestically that were classified as large quantity generators of hazardous waste (greater than 1000 kg/month of volume) and they generated 2644 tons of hazardous waste. In 1997, the last year that the EPA has published data on large quantity generators, the number of facilities had been reduced to 25 and the amount of waste generated has been reduced to 736 tons, a 72% reduction in volume over a six year period. Year Number of Facilities at Parker Waste Reported (tons) Percent Reduction Baseline % % % U S Larg e Q uantity G enerator W aste V o lum e Waste Volume (tons) Year Reporting Parker continues to seek ways to further reduce this amount through material substitution, waste segregation, alternative recycling options, and innovative product redesign. Page 10 of 19

11 Pollution Prevention Wastewater Treatment - Brazil The Parker facility in Jacareí, Brazil has long been a facility with a proactive environmental program. Since the early 90 s, well before local regulation required it, the facility has had a state of the art wastewater treatment system to reduce oil and metals discharge from the industrial water used at the site. Recently the government has focused efforts to improve the water quality of the local river. In an effort to raise public awareness, the local paper conducted an analysis of wastewater treatment systems in the industrial sector. Parker was rated as the 6 th best pollution prevention system in the area with a 96% efficiency rating. Air Emission Reduction - Alabama The Parker facility in Huntsville, Alabama has metal finishing operations required to properly finish the surface of the stainless steel components that they supply the chemical and semiconductor industry. Metal finishing processes require the use of corrosive chemicals such as acids and caustics and the fumes generated from these processes are highly corrosive in nature. Through substitution of chemicals, this facility was able to replace highly corrosive acids with less corrosive acids which resulted in a significant reduction in the amount of acid emissions in the process. Air Emission Reduction - Arizona The Parker facility in Glendale, Arizona manufactures aerospace fuel nozzles that require extensive testing in spray chambers. The spray chambers generate a large volume of fuel mist which resulted in a large quantity of air emissions. Faced with a daunting air permit process, the facility formed a team to tackle the problem. The end result was a 30% reduction in fuel mist emissions just by putting better controls and procedures in place for the testing process. This resulted in a cost savings for purchases of fuel as well as eliminated the need for obtaining a Title V Federal air permit. Page 11 of 19

12 Pollution Prevention Closed Loop Cleaning Systems Germany and Sweden With the switch from solvent cleaning of machined metals parts to aqueous cleaning came the new problem of generating large quantities of wastewater contaminated with small quantities of oil. Some of our German and Swedish facilities overcame this problem by investing in a closed loop aqueous cleaning system. The concept behind the unit is that wastewater from the process is evaporated to remove the residual oil. The residual oil is then collected and processed by an oil recycler. However, in addition to the oil reclamation, the evaporated water is then recondensed and is reused as water makeup to the cleaning system. As a result, the system is closed loop and generates no waste that requires treatment or disposal. This type of system is significantly more expensive then a normal cleaning system but has a good payback in reduced water use, no discharge that requires treatment, and a positive overall environmental impact. Facility Wide Recycling Broadview, IL The facility recycles 100% of the materials they use. Metalworking coolant, rustproofing solution, and mop water is evaporated to remove the water and the residual oil is recycled with an oil reclaimer. Office paper, cardboard, and all metal scrap produced in the plant, including aluminum cans are segregated and recycled. Cardboard Recycling Effort Based upon non-hazardous solid waste survey and report underwritten by the County Solid Waste District, Parker Hose Products in Wickliffe, Ohio ordered and installed a new baler to be used to bale old cardboard cartons (OCC). The unit was recently put into use, producing very compact bales of OCC weighing about 1,000 pounds each. The material is stored outdoors and accumulated to provide twenty bales for pickup. The initial experience suggests that the Division will generate about 55 tons of baled OCC annually, thereby diverting this quantity of waste from the landfill waste. Page 12 of 19

13 Health & Safety Parker s safety program is geared towards preventing accidents and maintaining compliance in the workplace. Our primary efforts to achieve this is through education, awareness, training, and top management support. Our primary metrics to gage program effectiveness are reportable accidents, lost workday rate, and performance in OSHA inspections. Our internal metrics include number of people trained, performance on internal EHS inspections, and worker compensation costs. Detailed below is Parker Hannifin s accident rate performance as compared to the industry standards developed by the Bureau of Labor Statistics (BLS). The standards are developed by industry type which is typified by Standard Industrial Classification (SIC) code. The most relevant standard for Parker are the 34xx, 35xx, and 37xx categories as detailed below. Parker had a lower rate for both total cases (reportable accidents) and Lost workday rate (reportable accidents that involved lost and restricted workdays) when compared to the industry standard in all three SIC classifications. While our incident rate increased slightly due to higher accident rates in some recent acquisitions, our lost workday rate went down significantly which can be attributed to improved back to work programs and a reduction in the severity of accidents at the facilities. Our future goal is to continue to reduce the case rate and lost workday rate at Parker through training, awareness, education, and top management support. Accident Rate Total Accident Rate Total Accident Rate with at least one lost workday (per 100 employees) Parker Hannifin ( ) Parker Hannifin ( ) Industry Standard (BLS-1999) 34xx (Fabricated Metal Products) xx (Industrial Machinery & Equipment) xx (Transportation Equipment) (per 100 employees) Page 13 of 19

14 No Lost Time Accidents Six Years and Counting The Air & Fuel Division in Tolleson, Arizona knows all about safety. They have not had a lost time accident in their facility since December, 1994, over six years and counting! The safety campaign initiated in 1994 was designed by shop employees and focuses on recognition for safety achievements. Called Safety is nothing to snicker about the program rewarded employees with a Snickers bar after the first accident free quarter, followed by a pizza lunch after one year and now, six years later, a steak lunch. The Division attributes their success to employee commitment, top management support, and a high level of safety awareness on the shop floor. Page 14 of 19

15 Compliance Parker has a good compliance record. With over 150 facilities in the US and another 90 Internationally, we get a lot of EHS inspections by Government Agencies, Customers, and even Shareholders. Environmental Year Inspections Fines Paid 1998 >15 $ >15 $ >20 $107,015 Only seven of the over 50 inspections that Parker has had in the last three years have resulted in fines. Three inspections that were conducted in the period resulted in fines in calendar year Two of these fines accounted for 95% of the total fines paid in The first was for RCRA recordkeeping violations at a closed site undergoing remediation in Ohio. The violations have been corrected and procedures have been put in place to eliminate future violations of this kind at this facility. The second was for storage of RCRA material at a facility in Ohio for more than the permitted period of 90 days. The violation was abated, closure of the storage area was completed, and procedures are in place to eliminate future violations of this type at the facility. Safety & Health Year Inspections Fines Paid $13, $44, $54, $16, $18,960 Of the 22 OSHA inspections in 2000, one resulted in a fine of $8415 and 7 of the 22 inspections resulted in the remaining fines of $10, of the 22 inspections resulted in no citations or fines. These results are significantly better than our industry peer group. Page 15 of 19

16 Compliance EHS Directives In October, 2000, Parker established and implemented globally the EHS Directives. These directives are a set of 12 EHS standards that all Parker Hannifin manufacturing facilities worldwide must comply with. These standards are fundamental requirements to a sound EHS program and include such elements as waste disposal, contractor safety, the establishment of a safety committee, equipment guarding, an emergency response plan, and appropriate personal protective equipment for employees. These Directives supercede our Best Management Standards that were adopted in In addition, the Directives are a standard by which all facilities are audited for compliance with during the course of an internal EHS audit. Internal EHS Audits Parker has had an active EHS compliance review program since Our goal is to audit facilities at an average rate of once every two to three years. This translates to roughly audits annually. North America and the UK receive complete compliance audits. Europe (other than the UK), South America, Asia, and Australia receive audits which include conformance to the EHS Directives, the Best Management Standard, and applicable local regulation to the extent that we can audit against that standard. Corrective action is carefully monitored by the Corporate EHS department, and results are annually reviewed with the EHS Steering Committee and the Corporate Audit Committee. Mexican Government Inspections of Parker Facilities Mexican EPA officials routinely inspect the Parker facilities in Mexico and provide a rating to the facility. In 1999 and 2000, three of our facilities were inspected and they all received an excellent rating which translates to a score of from the inspectors. Electronic Accident Reporting In an effort to improve the procedure of reporting accidents to our administrators for processing as well as improving the quality of completing the OSHA 200 accident log, Parker developed an electronic system that permitted the facilities to complete the accident form electronically. This process automatically populates the OSHA log for the facility and s the accident form to the administrator for processing. This system went online in 1999 and is being used corporate wide domestically. Page 16 of 19

17 Education, Awareness & Training Training The Corporate EHS department sponsored a three day training seminar for all domestic EHS coordinators in the fall of These seminars have been sponsored by the Corporate office since Over 180 attendees were allowed to chose from a menu of classes that best fit their needs at their respective facilities. In addition, there were demonstrations of new software, a regulatory update, and specialized presentations on a variety of EHS topics. Top management presentations were made by a member of the Office of the President and our Vice President of Operations Support. In addition to this training, new EHS coordinators were given a two day training class of EHS requirements applicable to Parker locations. This training also orients them to the requirements and resources available within the organization. Country Council Meetings The Corporate EHS department chaired Country Council meeting in Sweden, France, Germany, England, and Mexico in 1999 and These meetings last one day in length and feature a format that involves a presentation (in the native language) of emerging EHS issues in that country, usually by a third party consultant. This is followed by a presentation by the Corporate office of company programs and plans that impact global operations. Lastly, the facility coordinators will present EHS problems or success stories in a roundtable format to foster information exchange and networking. The Council meetings occur at a minimum of once annually and have been in place since 1992 for Germany and England, 1994 for France, and 1997 for Sweden and Mexico. Planned council additions for 2001 include The Netherlands and Brazil. EHS Orientation Many facilities have a constant flux of employees, contractors, and consultants. To ensure that everybody in operations that could have an EHS impact understand the importance of EHS at Parker, an orientation tape was produced and distributed globally to the manufacturing locations in This tape provides the basic EHS policy and information of Parker Hannifin and is used by many facilities corporate-wide. IS Five Parker facilities are ISO certified. In addition, there are facilities that will submit for third party certification in 2001 and Our compliance program (described previously) requires a management system but it does not require ISO certification unless there is a customer or regulatory demand that requires such a certification. Page 17 of 19

18 Education, Awareness & Training Intranet Site Parker s intranet site is the primary mechanism for delivering EHS information to the manufacturing facilities worldwide. There are hundreds of pages of program templates, regulations, links, databases, and information available for domestic and international facilities. This site also has an EHS chat room, preferred vendor purchasing links, and an Material Data Safety Sheet (MSDS) library. EHS Metrics The company has a set of EHS metrics which are measured and reported to the EHS steering committee and Group Presidents on a regular basis. These metrics provide upper management with general awareness on the performance of their respective business units in such areas as pollution prevention, hazardous chemical emissions, reportable accidents, internal EHS audit performance, external EPA/OSHA inspections, and awards and recognition received for outstanding EHS performance. This information is disseminated annually to internal management. Environmental Community Support - Australia Cattai Creek is a critical environmental habitat near Castle Hill, Australia. It happens to run right behind one of our manufacturing facilities. To support the local efforts to preserve this valuable watershed, Parker hosted a Project Launch to raise awareness and understanding. The launch, which occurred on June 10, 2000, had displays, activities, a brunch and speeches and was held at the Parker facility. At this launch, Parker committed to providing ongoing support to this project and committed to eliminating any industrial wastewater from their facility to the creek. Health & Safety Community Support - Utah The Parker facility in Ogden, Utah host an annual safety fair in which employees, families and friends are invited to receive safety information from local organizations such the fire department, drug prevention unit of the police department, gang prevention unit, food storing safety, and boating and recreation safety. Over 650 people attended in 1999 with balloons, raffles, food, and information about the safety program at the facility. Page 18 of 19

19 Recognition & Awards Corporate Wide KLD Investment Firm specializing in socially responsible investing, rated Parker Hannifin s Environmental Program as a company strength in Parker Hannifin was also below the Industry Average Indices for the IRRC Corporate Environmental Profile in Spartenburg, SC Facility Certificate of Recognition for superior environmental compliance for the year 2000 from the Spartenburg sanitary sewer district. Huntsville, AL Facility Page 19 of 19