Case Study - Automo/ve

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Case Study - Automo/ve Amy Lilly, Hyundai Brenda Baney, Delphi Oct 22 nd, 2014

agenda History of IMDS GADSL and IMDS Infrastructure IMDS Rules Recommenda/on 001 Structure Wildcards / Jokers Rec 019 Flat BOM Recent Changes IMDS 9.0 Update Faster IMDS updates throughout chain OEM / Supplier Workgroups on Data Quality, OEM Inconsistency CAMDS and METI Lessons Learned / Next Steps Lessons Learned Supply Chain survey on- going concerning data sharing

History Lesson Auto regula/ons Auto specific chemical regula/ons began in Europe European End- of- Life Vehicle Direc/ve passed 2000 Banned substances effected 2003: heavy metals Mandatory recycling percentages, improvement targets ELV Annex II list of heavy metal exemp/ons is comple/ng 7 th stakeholder revision, entering 8 th Other regula/ons around the world addressing chemicals with automo/ve impact Europe: RoHS REACH U.S.: CA Green Chemistry TSCA Canada: Canadian Gaze`e Global: Stockholm Conven/on

Move from Paper to Electronic Data 4 Challenges Target Efficient management of a huge amount of data Easy overview on chemicals in parts Quick feedback and effec/ve communica/on between suppliers and OEMs Fulfillment of legal requirements with lowest effort In 1999, 7 OEMs decided to develop one common collec/on tool Web based Standardized Computeriza/on Quan/ta/ve report IMDS (Interna/onal Material Data System) The automo/ve industry collaborated with EDS (now HP) on an innova/ve new database Access: www.mdsystem.com

IMDS History 5 2000 2001/02 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

GADSL 6 Global Automotive Declarable Substance List www.gadsl.org Criteria: Substance expected in automobile part or vehicle Substance is regulated or projected to be regulated Reportable threshold levels will be based on the lowest level required by regula/on or scien/fic evalua/on.

Data Collec/on for IMDS 7 Within the whole supply chain, each supplier has to enter the substance & material informa/on for his component to the IMDS- account of his customer Results in a more or less complex Material Data Sheet that is sent from the Tier 1 Supplier to the car manufacturer (OEM) The OEM is using the data to check compliance of the purchased parts and substances for internal requirements as well as legal obliga/ons Each level of the chain can (and is) using the data to check and proof compliance Data ownership (and responsibility) is on data creator site Data cannot be modified by the reciever (without genera/ng a new version (Data ID) IMDS Communica/on of substance informa/on Raw Material supplier Tier n supplier Tier 2 supplier Tier 1 supplier OEM GADSL One reference list for declarable substances

Pictures of IMDS Use of confiden/al substances With appropriate flagging methods Printed Circuit Board (PCB) & small electronic components Component & compliance detail received but assembly summariza/on provided

IMDS Func/on & Rules Recommenda/on 001 (general) In principle, agreed to by all par/cipa/ng OEMs Addresses rules surrounding: Level of disclosure, including Pseudo substances, such as ABS, ceramics, etc joker/wildcards represen/ng non- GADSL industry confiden/al substances allowed to be stated within a material up to 10% by weight total Published materials By IMDS Steering Commi`ee and/or recognized industry bodies Problems with individual company published data quality & accuracy along with accessibility. ***need for lowest /er engagement Con/nuing evolu/on as disclosure needs expand Recommenda/on 019 (electronics repor/ng) Developed by mainly Tier 1 supplier group for collec/ng compliance data & simplifying (i.e. Flat BOM) submissions Material naming conven/ons for components <5g (in- progress) Use of standard material set for describing populated PCB

IMDS 9.0 / Recent Changes IMDS Updates in past 5 years New look & new platorm (right click) New func/onality focused on: Data Quality, checks suggest correc/ons (ex. material classifica/ons) Data Ownership, restrict unauthorized copies Allowing faster updates to flow from material manufacturers up through supply chain to downstream end customers Up- coming Enhancements to focus on: Unified requirements (OEMs & /ers) Supply Chain Confiden/ality Published data accuracy & accountability Flexibility for new environmental regs (ex. Biocides)

China ELV Regula/on Structure of China ELV Tech Policy (2007) Administra/ve Rules (Drauing) The key regula/on of China ELV Big Impact for supply chain GB/T 19515-2004 R&R Calcula/on Method GB/T 26988-2011 Marks for Recoverability GB Substance restriction Examina/on and Audit Procedure GB/T 26989-2011 Recovery Terminology METI Japanese Data Proposal 4 Industrial Standards Tes/ng Methods 1. Japanese government (METI) is fully commi`ed to development of new informa/on transfer scheme (tools). Release format & support tools 2014 2. In globally- connected supply chain, need standardized informa/on methods for chemicals in products. Working with various standards bodies

Pictures of CAMDS & METI proposal CAMDS - IMDS clone (2009) Addi/onal databases Recycled content VOC Test data METI (Japanese govt) new info system 2014 pilot

Lessons Learned Benefits Well established process across the automo/ve industry Provides a consistent means of repor/ng for suppliers Reduces costs by having harmonized rules for fulfilling various global chemical regulatory regimes Issues Took 5 years, at least, to reach data quality, and work is on- going Data is only as good as what is entered Must rely on supplier support and informa/on Regional concerns with raw material data Only applies to exis/ng regula/ons and is not future looking GADSL list is based on current & pending regula/ons Discussions on- going about expansion to include forecasted substances for informa/on purposes. An inves/ga/on for a given substance via IMDS can take up to 6 months due to repor/ng complexity in the automo/ve supply chain Based on CAS numbers as substance iden/fies and not always provided in regula/ons

Addi/onal considera/ons IMDS is an automo/ve system working very well for car manufacturers Suppliers have indicated a need for more mul/- industry collabora/on concerning informa/on on chemicals in materials and products Drivers Opera/onal efficiency Compliance & Reputa/onal risk Stakeholder expecta/ons Benefits Crea/ng sustainable product development processes Improved risk management Expor/ng a global culture of responsibility