Environmental Stewardship Initiative

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Environmental Stewardship Initiative The GKN Way
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GKN Driveline Sanford Precision Forming Facility

• Plant construction 1983
• First production October 1984
• Inital capacity of plant 4 million forgings /
  year
• 2005 output more than 12.2 million forgings

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Our Product
Steel is the starting material
From forgings, CV joints are made at other GKN
plants
Forgings are made at PF
GKN has more than 40 of the global market for CV
joints
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HR-EHS-014 / January 2, 2001 / Rev. Date 5/5/04
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OUR SIGNIFICANT ENVIRONMENTAL ASPECTS IMPACTS
ENERGY CONSUMPTION
WASTE GENERATION
WATER CONSUMPTION
ISO14000 ENVIRONMENTAL MANAGEMENT SYSTEM
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Corporate Target
Site Target
Corporate Target
Site Target
Corporate target 10 reduction from 1999
baseline Site target 18.65 reduction from 1999
baseline
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Corporate Target
Site Target
Corporate target 10 reduction from 1999
baseline Site target 17.75 reduction from 1999
baseline
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Corporate Target
Site Target
Corporate target 5 reduction from 1999
baseline Site target 48.14 reduction from 1999
baseline
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Our Commitment beyond Compliance
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Earth Day Celebration
Employees reviewing Earth Day displays
An opportunity to renew our pledge to minimize
the impacts of our significant aspectsenergy,
water, and waste
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State-of-the-Art Emissions Control System
The Rotoclone scrubber combines centrifugal force
and mixing of water and dust-laden air
Only forging plant in the world that has applied
this technology to control warm form press
emissions
Rotoclone scrubber replaced the wet scrubber
system although compliance was fully achieved
with the wet scrubber system
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Debottlenecked Waste Water Treatment Plant
The limitations of the previous plant were flow
and zinc content. But the new plant was
over-designed on purpose to accommodate
stewardship features, e.g., drier filter cake,
lower toxic levels, and equalized flow.
The Waste Water Treatment plant project was
debottlenecked to ensure zero non-compliance at
all times
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Value Stream Management (VSM) Cell
The VSM cell reduced material movement by
streamlining the cold forming operation
Phosphate treatment is one of the main
contributors of environmental pollution. The VSM
cell eliminates phosphate treatment.
The VSM cell results in significant reduction of
energy, water, and wasteour significant ISO
14000 aspects and impacts.
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Recycling Projects
COMPLETED

• Computer and photocopier paper
• Plastic bottles
• Aluminum cans
• Chemical drums

• Aerosol cans
• Used oil
• Wood pallets
• Fluorescent lamps
• Steel scrap

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Other Stewardship Initiatives

• GKN is one of the few companies that tracks CO2
  emissions from transportation of raw materials
  and products (Global Warming/Kyoto Protocol)
• We meet with the City of Sanford to pro-actively
  address compliance issues
• Various parameters of our storm water are
  monitored on a daily to weekly schedule (our
  permit requires semi-annual monitoring only)
• We are actively pursuing a project for
  incorporating waste water treatment sludge into
  building materials (instead of landfilling)

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Our Partnership with Local Community
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Sustainable Development
ENVIRONMENT
ECONOMY
GKNS CORPORATE POLICY EMBRACES HARMONY BETWEEN
THE ENVIRONMENT, THE ECONOMY, AND THE COMMUNITY
COMMUNITY
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Greening Sanford
GKN Driveline employees planted trees at Depot
Park, Sanford (Sanford Herald, April 17, 2005)
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Benchmarking for Environmental Stewardship
The GKN PF plant is routinely benchmarked by
forging operations all over the world We have
benchmarked environmental management systems of
Toyota, Moen, and others In return our
environmental management system was benchmarked
by NACHI, Lee Iron and Brick, Caterpillar, and
others Our corporate website provides internal
benchmarking opportunities on our best management
practices for environmental systems
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Other Community Initiatives

• Presentation of our environmental policy and
  environmental management system to the Mayor and
  his City Council members
• Partnership with NC State University on energy
  audit
• Partnership with NC Solar Center, State Energy
  Office, and San Diego Power for energy reduction
  measures
• Partnership with supplier IMDS program for
  greening the supply chain

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Integration of our EMS into Core Business
Functions
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Integration Efforts

• Energy, water, and waste evaluations in our
  capital investment decisions (e-works software
  for CAPEX decisions)
• Kaizen (continuous improvement) initiatives that
  won top award for EHS innovation in 2002, and
  local management award in 2003 and 2004
• Communication of ISO 14000 objectives and
  targets
• Monthly meeting with local management
• Monthly meeting with top management
• Quarterly environmental report to corporate
• Annual environmental report to corporate

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Integration Efforts
Site environmental goals and objectives are
integrated with corporate loss prevention and
risk assessment approach (through use of
corporate-sponsored ENGAGE software) Corporate
Green Scheme program fosters innovation in
environmental management systems, and provides a
significant opportunity for benchmarking best
management practices Quarterly and annual
environmental reports are submitted to corporate
addressing environmental management system
conformance with ISO 14000 standards
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Integration Efforts

• ISO 14000 steering committee, non-conformance
  forms, behavioral surveys
• ISO 14000 training and awareness campaigns
• ESCARs (corrective and preventative actions
  program)
• Rewards and recognition program
• Partnership with suppliers and contractorsreview
  of EMS information at the security gate,
  contractor video

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Incentives for Meeting Objectives and Targets

• Bonus package for management is linked to meeting
  ISO 14000 objectives and targets
• Incentives package for employees is linked to
  overall achievement of EHS metrics (including ISO
  14000 objectives and targets)
• Spot awards for submitting exceptional
  environmental recommendations for meeting ISO
  14000 objectives and targets

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Going into the Future..

• More recycling projects Toner cartridges,
  Batteries, Oil absorbents, Gloves, Aprons
• Carpooling
• Further awareness through ISO 14000 puzzles and
  behavioral surveys
• Water-based parts cleaners (instead of
  solvent-based)
• Kamishibai audits for our environmental system
• Green supply chain

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• The GKN Driveline facility is poised to be the
  environmental benchmark for other GKN facilities,
  and for forging operations around the world