Environmental Stewardship
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- Jeffry Goodman
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1 Environmental Stewardship
2 From our EHS Director Since our beginnings more than 25 years ago, AFL has focused on environmental stewardship to achieve our business goals. We began with a solid foundation of compliance and have expanded our efforts to not only manage environmental impacts, but to reduce or eliminate them wherever possible. Among other achievements, we have reduced our global electricity use by 14%, cut natural gas consumption by 42% and lowered water use by 11% since Along the way, in part because of our focus on environmental stewardship, we ve become a more efficient and innovative operation, driven costs out of the business and grown into an even stronger company. I m proud of these accomplishments, but recognize we have more to do. Globally, our ISO environmental management system (EMS) process provides the framework for improvement. Every AFL facility is ISO certified, our audit process is robust and our employees are engaged in identifying and implementing improvements. Strong management support across the business units from individual environmental, health & safety (EHS) managers to senior leadership also drives success. Most importantly, all of us at AFL share a lasting commitment to building a better company for future generations in the communities where we live and work. Doug Hoffman Environmental, Health & Safety Director
3 Internal audits provide first-hand knowledge about areas for improvement and engage employees in our environmental stewardship.
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5 Tracking Our Performance Each AFL facility tracks its environmental performance across several indicators. We monitor electricity, natural gas and water use, as well as generation of both non-hazardous and hazardous waste and the amount of waste recycled, among other environmental performance metrics. To account for the diversity among our products and processes as well as our growth we calculate a weighted average based on the relative environmental performance of each plant. We then graph the change for the current year compared to the previous year. This allows us to accurately assess our progress over time as a percentage change from each prior year based on each plant s relative performance during that period, eliminating the need to apply a single normalizing variable (such as cost of goods sold or kilometers of cable) to facilities that are quite different. Indicator Energy Electricity use Natural gas use Waste Non Hazardous Hazardous Recycled** Water Water use ENVIRONMENTAL PERFORMANCE * Goal (over 4 years using 2006 as baseline) Performance (as a weighted average from ) 12% 14.4% 42.3% 12% 31.1% 24.0% 16.1% 12% 10.9% Notes * Includes performance for all existing AFL manufacturing and major product services facilities four manufacturing sites in the United States, as well as one facility each in Germany (acquired in 2009), Mexico and the United Kingdom. Not included are AFL s very small Network Services offices, which are occupied by one to two people each. ** Because some AFL facilities did not track recycling until 2008, that is our baseline performance year for recycling. Since 2008, we have weighed all waste separated for recycling.
6 Reducing Our Carbon Footprint Minimizing our consumption of electricity and natural gas is a significant focus for AFL. Since 2006, our electricity consumption has decreased by 14%, beating our 4 year goal of 12%, thanks to numerous efficiency measures. In South Carolina, an upgraded compressed air system at our United States Alumoweld Company (USAC) facility has improved efficiency by 50%, saving more than 820,000 kilowatt hours (kwh) per year. Lighting upgrades at our Ridgeview and Hillside sites are reducing electricity use by more than 2 million kwh annually. These changes, along with new rolling doors, an energyefficient chiller, new air conditioning systems, a new forklift fleet and numerous other improvements save 3.8 million kwh each year and reduce costs by more than $200,000 annually at our four South Carolina facilities. In Swindon, United Kingdom, new lighting, a fixed air conditioning shut off period and a device that prevents employees from overriding boiler temperature settings have all contributed to reductions. The Monterrey, Mexico site implemented an employee suggestion program for energy saving proposals, with two improvements implemented to date, as well as a program to help employees optimize their energy use at home. And, our Network Services business, which plans, designs, implements, operates and maintains communication networks for telecommunications, electric utility and broadband providers, is replacing older fleet vehicles with more fuel efficient models.
7 Electricity and Natural Gas 30% Cumulative 20% 10% 0 10% 20% 30% 40% 50% Electricity Natural Gas Goal Notes Electricity use increased in 2009 due to our acquisition of the Mönchengladbach, Germany site, which uses more electricity than any of our other facilities due to the age of the building (100 years), inefficiency of its equipment and the area s climate. We continue working on efficiency initiatives to reduce the facility s energy use. Globally, the many energy efficiency measures we implemented in 2010 significantly reduced overall consumption.
8 Conserving Water Because cable manufacturing is not water intensive, AFL s water use is largely limited to meeting the water and sanitation needs of our employees and irrigating the landscape. Even so, we seek ways to limit usage wherever possible. Since 2006, we have reduced water use by 11%, almost meeting our company-wide reduction goal of 12%. At the Ridgeview site in South Carolina, we replaced the chiller necessary for our welders with a self-contained system that recirculates cooling water, and at the USAC facility, we installed water-saving welders on the pipe machine. Both facilities also implemented leak detection and repair programs. Landscaping at our sites is modest, but helps us be a good neighbor by providing an attractive buffer of drought-resistant plants. Rather than using timed irrigation systems, we monitor local precipitation and irrigate just enough to reduce plant stress during dry periods. In Monterrey, modified irrigation tubing has improved visual awareness of water use to help meet a new maximum monthly consumption goal of 3 m 3 for the fiscal year. 45,000 Water Usage 40,000 cubic meters 35,000 30,000 25,000 20,
9 The Duncan, South Carolina facility installed a system that detects soil moisture levels to prevent unnecessary irrigation.
10 Meeting Our Zero to Landfill Goal Throughout AFL, our goal is to send zero waste to landfill a goal achieved at two of our facilities due to reuse, recycling and incineration. From 2008 to 2010, we produced 31% less non hazardous waste and 24% less hazardous waste across our facilities, and at several sites, hazardous waste has been eliminated completely. At the same time, recycling has increased by 16% since 2008, and we are now recycling 86% of the waste produced, a trend we expect to continue. At our Spartanburg facilities, we recycled 5,690 metric tons from 2008 to 2010 alone. Every one of our cable manufacturing facilities recycles a variety of materials that would otherwise become waste, including wood and steel spools, plastic scrap, excess metals, batteries, cardboard, paper, glass, rags, absorbents and other items. In addition, our Monterrey facility has implemented a battery recycling program for employees and reduced the size of its chemical wipes by 75%, earning special recognition from the state government along with recategorization as a small quantity hazardous waste generator. The Spartanburg operation, listed as a large quantity generator in 2005, was also recategorized as a conditionally exempt small quantity generator thanks to eliminating the use of solvents for writing on cables. metric tons Waste Non Hazardous Waste Hazardous Waste
11 3000 Recycling 2500 metric tons AVG Recycling includes the steel spools we receive from suppliers, plastic scrap created during manufacture, aluminum, wood and many other items. At our Swindon location waste volume has decreased by 42% since 2006.
12 Supporting Strong Communities To be sure, AFL s core values guide our business operations, foster a culture of creativity and innovation and help us deliver on our promise of customer satisfaction. They also inform our commitment to the communities where we do business. In all our operating locations, we support sustainable and livable communities through regular outreach, education, volunteering and philanthropy. For example, the company-wide Take Root program reflects our global commitment to healthy communities. Every year, AFL provides free trees to manufacturing employees, resulting in more than 700 trees planted annually. Additional reforestation and adopt-a-tree programs in Monterrey, Mexico and Spartanburg have resulted in hundreds of new trees planted at schools and in public spaces. We also procure responsible supplies and materials, where appropriate, to further minimize our impacts on the communities where we live and work. This includes purchasing recycled office supplies and packaging materials and sourcing environmentally preferable computers, photocopiers, printers, fax machines and other items. Our Swindon location is currently a company leader in eco-conscious purchasing and we are working to replicate their model in all our facilities.
13 We recently met our goal of planting 5,000 trees in 5 years. Many of these were planted by AFL employees, while others were donated to communities to plant in public spaces.
14 AFL provides industry-leading products and services to the electric utility, broadband, communications, OEM, enterprise and wireless markets as well as the emerging markets of oil and gas, mining, nuclear, avionics and medical. Values We will contribute to the success of our customers and stakeholders by living our values. Customers First Integrity Innovation Collaboration & Accountability Environment, Health & Safety Community Engagement Contact Us Achieving our environmental stewardship goals is an ongoing journey, and one made richer by input from our stakeholders. If you have a concern or would like share feedback about our environmental initiatives, please contact us at AFLenvironmental@aflglobal.com. Locations AFL has operations in the U.S., Mexico, Europe and Asia. The company is a wholly-owned subsidiary of Fujikura Ltd. of Japan. Facilities included in this environmental stewardship summary include: Duncan, South Carolina, USA (Global Headquarters and three manufacturing facilities) Belmont, New Hampshire, USA Hawksworth, Swindon, UK Mönchengladbach, Germany Monterrey, Mexico
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