Approach to Global Compliance

Transcription

1 Approach to Global Compliance NAEM Conference Mark Cates August 2014 Revision date: April 11, 2014

2 Corning Incorporated Founded: 1851 Headquarters: Corning, New York Employees: ~34,000 worldwide 2013 Sales: ~$8.0B Corning is the world leader in specialty glass and ceramics. We create and make keystone components that enable high-technology systems for consumer electronics, mobile emissions control, optical communications, and life sciences. We succeed through sustained investment in R&D, more than 160 years of materials science and process engineering knowledge, and a distinctive collaborative culture. Fortune 500 Rank (2013): Corning Incorporated 2

3 Corning Market Segments and Additional Operations Display Technology Optical Communications Environmental Technologies Life Sciences Specialty Materials Other Products and Services LCD Glass Substrates Glass Substrates for OLED and high-performance LCD platforms Optical Fiber and Cable Hardware Optical and Equipment Connectivity Solutions Fiber optic Wireless connectivity products Distributed Antenna Systems Optical Cables for Consumer Networks Copper Connectivity Components Emissions Control Products Light-duty gasoline vehicles Light-duty and heavy-duty on-road diesel vehicles Heavy-duty nonroad diesel vehicles Stationary Cell Culture and Bioprocess Drug Discovery ADME/Tox Genomics Chemistry Microbiology General Laboratory Products Corning Gorilla Glass Display Optics and Components Optical Materials Semiconductor materials Specialty fiber Polarcor Optics Aerospace and Defense Corning Specialty Glass Emerging Innovations Equity Companies Cormetech, Inc. Dow Corning Corp. Eurokera, S.N.C. Samsung Corning Advanced Glass, LLC (SCG) 2014 Corning Incorporated 3

4 A Culture of Innovation 1879 Glass envelope for Thomas Edison s light bulb 1934 Dow Corning silicones 1952 Glass ceramics 1970 First low-loss optical fiber 1982 Active matrix liquid crystal display (LCD) glass 2007 Thin, lightweight cover glass with exceptional damage resistance Ultrabendable fiber 1915 Heat-resistant PYREX glass 1947 Processes for mass producing the television bulb 1964 Fusion overflow process 1972 Ceramic substrates for automotive catalytic converters Environmentally conscious LCD glass 2006 Label-free screening platform for drug discovery 2014 Corning Incorporated 4

5 Research and Development (R&D) Our growth is fueled by a commitment to innovation and a passion for conquering complex material and technology challenges We invest approximately 10% of our sales in R&D We maximize the results of our R&D by engaging crossfunctional teams and senior leadership at all stages of innovation Our technology leadership and R&D environment attract and enable the best scientific minds in the world 2014 Corning Incorporated 5

6 Environmental Compliance - Situation Assessment 2008 Basic compliance of operations not a focus Bad things happen Lots of senior subject matter experts in corporate group. Lacked leadership unwillingness to have conflict. Rapid expansion period in Asia. Individuals working on lots of things EMIS, Products, etc. Little process discipline. Operation leads had inconsistent backgrounds. Tools were old Info took forever! Hand-O-matic Access/Oracle DB One way..to corporate. BOD not happy wanted plant managers fired! 2014 Corning Incorporated 6

7 Global Challenges in Today s Environment Compliance is the foundation! Cultural differences around the world. Growth through acquisition requires careful integration. Resource limitations - $$$, Time, People. Changing laws..moving targets. Sustainability pressure from customers. Product Compliance exposure Corning Incorporated 7

8 Corporate Environmental Control Mark Cates, Director Environmental Control provides global oversight of all operations regarding emissions of all forms from our facilities, and product compliance concerning material content, to ensure minimal potential liabilities and regulatory compliance. Operations Compliance Audits Approve Hazardous Waste Disposal Facilities Permitting Assistance for new processes, new plants, new products, expansions. ISO Track corporate emissions Greenhouse Gas Inventory Corporate Environmental Reserve Legacy sites Due Diligence Assessments - Acquisitions/Divestitures Products REACH RoHS WEEE Packaging Batteries TSCA Life Cycle Analysis Stewardship Corporate polices & procedures Environmental awareness Pending legislation Hazardous Material reduction Environmental Consultants Create & maintain standard environmental processes 2014 Corning Incorporated 8

9 Why do I care so much about Environmental Performance? Hierarchy of Sins for Manufacturing: 1. Break the law 2. Ship bad product 3. Have a missed promise with a strategic customer 4. Shortfall the market 5. Shortfall the forecasted Receipts to Stock 6. Increase costs 7. Feel bad I have had this on my office wall since the mid 90 s. My interest isn t going away Corning Incorporated 9

10 Operations Compliance Focus Making it important! Plant Manager report incidents each month. Environmental Incidents 30 days for root cause and corrective actions. 100% ISO Conservative metric Any violation of corporate standard, permits or regulations. Consistent communications and universal application. Controllable Incidents 11 $K Penalties Executive visit to any site with multiple incidents in a year: What Happened? True root cause? # OF INCIDENTS $K PENALTIES What do you need technology, people, $$? 2014 Corning Incorporated 10

11 Energizing Compliance Audits Universal questionaire No Attorney Client Privilege Performance Matrix drives audit frequency: Performance SiteName Total scoring 2012 scoring EMS System Audit Rating Total Rating Erwin, NY (Sullivan Park) + CCIC Bottom Corning, NY (Decker Bldg) Bottom Bagneaux, France Bottom Port Elizabeth, South Africa (CPSA) Bottom Blacksburg, VA Bottom Avon, France (Corning European Technology Center) Bottom Vordingborg, Denmark Middle Keene, NH (NetOptix) Middle Rotating 3 rd party audits. Currently going live with Credit 360 module Addition of Enhesa subscription site specific Self-audits didn t work! 2014 Corning Incorporated 11

12 Modernizing Toolset to Aid Compliance Several starts and stops with EMIS 2013 Finalized software selection with support from E2ManageTech Metrics and incident reporting live. Audit module live Q3. Easy to configure and clean user interface. Product Compliance has been a multi-year journey. CCS mapped out work processes across Corning and what they should be Selected software solution to manage data across diverse business units. Finding BOM data was challenging. Mapped data and automated bridges to feed Assent tool. Remediation process critical for non-respondants. Large SKU businesses can be challenging but same process Corning Incorporated 12

13 Environmental Strategy Zero Controllable Incidents Zero Incidents is the goal. Consistent performance information and push for incident root cause identification/corrective actions. 100% ISO certification Executive attention on multiple incident sites. Strong compliance audit program Minimize long term financial liabilities. Resolve remediation events when they occur. Eliminate long term risks from labs and manufacturing. Methodically identify steps to close existing legacy sites. Environmentally friendly products delivered to market. Software: Credit 360 EMIS, Assent database, Sima Pro LCA Involve innovation process. Promote improvements in resource conservation Sustainability! Effectively manage and reduce our overall footprint by X% per year (water, energy, raw materials, packaging, etc.) Attain Zero Landfill status in three years Corning Incorporated 13

14 At the end of the day, it s the basics! Establish credibility quickly. Operations focus in how we approach. Willingness to take on the fight Leadership Clarity of expectations and accountability. Work a broad network Corning Incorporated 14

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