Best Practices for Environmental Data Collection in the Supply Chain

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1 Best Practices for Environmental Data Collection in the Supply Chain Tord Dennis, Practice Leader, WSP Parsons Brinckerhoff Les Porter, Senior Director, WSP Parsons Brinckerhoff

2 Overview One of the biggest challenges of a corporate environmental compliance team is to collect complete and accurate material and substance data in a timely manner from suppliers. This session will provide insight into some of the complexities involved in the logistics of supply chain data collection for RoHS, REACH and Conflict Minerals. Reasons why supply chain data collection is such a difficult task will be highlighted and some solutions that companies can employ to make the process a bit easier will also be discussed. Learning Objectives Understand what the challenges are in collecting complete and accurate material and substance data from the supply chain. Learn how to make the process easier. Learn how to complete the process in a timelier manner.

3 Global Regulations are Growing and Evolving RoHS exemptions are expiring in 2016 Conflict Minerals US law may evolve to require Independent Private Sector Audits (IPSAs) China and the EU are exploring similar laws REACH In 2015 the European Court of Justice (ECJ) issued ruled once an article, always an article the 2018 deadline for registering substances is looming closer

4 Effectively Manage Supply Chain Information Challenges: Understanding current regulations and anticipating changes Understanding what information is necessary and where that information should come from

5 Effectively Manage Supply Chain Information Best Practices: Keep the supply chain information Centralized Flexible up-to-date Control the size of supply chain Build product environmental compliance requirements into supplier contracts Manage wholesalers, distributors, and resellers

6 Challenges Supply Chain Communication Getting accurate and timely material and substance information from the supply chain Analyzing the material and substance to determine product compliance

7 Supply Chain Communication Best Practices: Simplify product environmental compliance specifications Collect full material declaration (FMD) data Use a data collection industry standard Automate the data collection process Utilize a Product Lifecycle Management (PLM) System Purchase the FMD data from a data warehouse/broker Outsource product environmental data collection

8 Summary Be proactive and forward-looking Have a strong product stewardship plan Include material and substance disclosure language in supplier contracts Get the most information possible FMD Executive awareness and buy-in is critical! The OEM and the supplier are partners in this venture; no data means no business for all parties involved.

9 WSP Parsons Brinckerhoff From offices across the USA, our environmental professionals are part of an international team of specialists that draws on best practices and brings solutions to our clients most difficult business and technical challenges. WSP Parsons Brinckerhoff is one of the world's leading engineering professional services consulting firms. We bring together our 34,000 staff, based in more than 500 offices, across 40 countries. WSP Parsons Brinckerhoff provides engineering and multidisciplinary services in a vast array of industry sectors, with a focus on technical excellence and client service. 9

10 WSP Parsons Brinckerhoff s Integrated Product compliance management Helps clients find long term solutions to product compliance and supply chain challenges through the following services: Product Environmental Compliance Environmental Software Consulting Digital Solutions Supply Chain Engagement and Business Process Outsource 10

11 DISCLAIMER The information in this slide deck has been prepared by WSP Parsons Brinckerhoff ( WSP ) for GENERAL INFORMATION & EDUCATIONAL PURPOSES. It does not constitute consulting services or advice. WSP makes no representation or warranty (express or implied) with regard to its accuracy, completeness or timeliness. Transmission, receipt, or acceptance of this information does not create a relationship with WSP. Parties seeking advice should consult with counsel, consultants, or other suitable resources familiar with their particular circumstances. 11

12 Thank You! Best Practices for Enterprise Supply Chain Data Collection Tord Dennis Leslie Porter WSP Parsons Brinckerhoff