Benefits of an Environmental Management System Andrew Frisbie Wabash National Corporation

Benefits of an Environmental Benefits of an Environmental Management SystemManagement System

Andrew FrisbieAndrew FrisbieWabash National CorporationWabash National Corporation

WABASH NATIONAL CORPORATION

Company Overview Company founded in 1985 One of the largest truck trailer manufacturers in North

American Over 50,000 trailers and $1 billion in sales Environmental Management System started in 2004 First trailer manufacturer in North America to be ISO

14001 in 2005

Our products move the world….

WHY IMPLEMENT AN EMS ?

Before our EMS, we were being managed by our environment requirements:

Needed to stay in compliance. Needed to keep track of regulations/laws. "Person Dependent“ rather than "System Dependent" No framework to move beyond compliance. Environmental was just one of many areas of focus. No alignment with overall corporate planning. No good measure of current performance. Many individual parts in place – not unified under the EMS

umbrella!

Systematic and Recognized Method to:

Stay Legal

Increase Corporate Social Responsibility

Drive Sustainability Initiatives

Drive Down the Cost of Operations

Increase Green Marketing Initiatives

WHY IMPLEMENT AN EMS ?

EMS is a Plan/Do/Check/Act System

PLANNIG!!!

• Environmental Policy• Statement of our commitment• Communicate it!• Employees to understand it

• Aspects• Review of operations • Their impact • Where to focus resources

HOW TO IMPLEMENT AN EMS

HOW TO IMPLEMENT AN EMS

• Legal and Other Requirements• Capture and document for operations• How to stay current

• Objectives and Targets• What do we want to do to improve? • Focus and align efforts• Take credit for "good things”• Framework to ensure achieve goals

HOW TO IMPLEMENT AN EMS

DOING!!! • Resources, Roles and Responsibility

• Defined/assigned roles within the system• Involves others (not just EH&S role)

• Competence, training and awareness• Ensure employees and contractors can do their job• Aware of their role• Protects company

• Communication• Define what/how we communicate• Who will do it

HOW TO IMPLEMENT AN EMS

• Control of Documents/Records• Big part of environmental field• Ensure current documents are being used

• Permits• Work instructions• Emergency procedures

• Operational Control• Document critical work practices• Maintain compliance• Not re-inventing the wheel

• Emergency Preparedness and Response• Review potential emergency situations• Develop plans to respond• Ensure testing and drilling

HOW TO IMPLEMENT AN EMS

CHECKING!!!!

• Monitoring and Measurement• Identify critical metrics • Set baseline for improvements• Ensure maintain improvements

• Evaluation of Compliance • Auditing

• Regular reviews of system• Helps to ensure compliance and performance

• Corrective and Preventive Actions• Ensure corrected or prevented• Identify trends • Involve other departments

HOW TO IMPLEMENT AN EMS

ACT………….

• Management Review• Active senior management involvement• Drive continual improvement • Commitment of resources• Alignment of efforts

WHY IMPLEMENT AN EMS?

But, what are the outputs?

Corporate Social Responsibility

For Indiana companies Must have an environmental management system Strong history of environmental compliance “Better Environment, Better Business” Voluntary, performance based leadership program Commit to continuous environmental improvements

• “Peer” reviewed and approved by IDEM

Stay Legal

Environmental Stewardship Program Member Benefits

Positive relationship with IDEM More flexibility with IDEM More responsive on permitting Recognition for our associates Networking with other ESP companies

Sustainability Initiatives

Recycling/Reuse Wood program to reduce waste

sent to landfill Reduction of over 250 tons of

waste landfilled per month Over 6 million pounds of wood

recycled in 2008• 16,000 mature trees and

• 11,000 cubic yards of landfill space

While saving over $74,000 per year

Cost of Operations

When we talk about electricity, our bill is based on both peak and total usage Cost varies due to multiple riders Using January’s bill:

• $18.1 per kW of peak 30 minute usage at North Plant• $0.032 per kWh of total usage

Cost is increasing!• Duke is projecting 9-14% increase from 2009 to 2010

Cost Reduction Efforts Focus on reducing overall energy consumption Must also focus on reducing peak energy use

Cost of Operations

Tuesday, Dec. 9, 2008

Wednesday, Dec. 10, 2008

Hourly electricity usage for two days in December.

Prior to concerted effort to shut down equipment and keep it off.

• Manufacturing

• Maintenance

• Materials

• Asset Protection

• Manufacturing Engineering

1st Shift

Tuesday, Feb. 10, 2009

Wednesday, Feb. 11, 2009

Cost of Operations

Using Dec. 9th and Feb. 10th as an example, total usage was reduced from 87,992 kWh to 51,676 kWh (36,316 kWh). At a cost of $0.032 per kWh, this equates to $1,162 per day.

Driven by:

Extensive shutdown of equipment at end of shift

Coordination between departments

Management of compressed air leaks

Tuesday, Dec. 9, 2008 Tuesday, Feb. 10, 2009

Cost of Operations

Peak demand has dropped between 400 and 900 kW. At a cost of $18.1 per kW of peak demand, this equates to between $7,240 and $16,290 per month.

Reduction is being driven by:

• Transformation reducing amount of equipment running at one time.

• Shutting down other equipment

• Management of our compressed air system

• More efficient equipment

North Plant Peak Usage

3,000

3,500

4,000

4,500

5,000

5,500

Jan

-07

Ap

r-0

7

Jul-

07

Oct

-07

Fe

b-0

8

Ma

y-0

8

Au

g-0

8

De

c-0

8

Ma

r-0

9

Pe

ak

Us

ag

e (

kW

)

Green Marketing InitiativesSales and Marketing Advantage Set us apart from our competition Customer requests on environmental initiative “Value” of cost neutral projects EMS internationally recognized EMS is valued by others

Wabash National Corporation