Tessy Plastics Corp. Skaneateles, NY

Reporting Year - 2017

Annual Stewardship Report

Message from ourVice President and Director of EHS

- Joe Raffa, Vice President and General Manager

In 1984, in an effort to teach my young sons about short-termand long-term goals, I challenged myself to run every singleday for a month, and then every single day for a year. Once Imet my goal, I didn't stop. I have run every single day sincethen, with this December marking 33 consecutive years ofrunning daily, never missing a day.

This analogy of short-term and long-term goals was also passedover to our business. In 2010, we faced pressure from ourlargest customer to improve operations. Our short-term goalwas to meet their expectations to keep their business. We thensaw an opportunity to make long-term goals in the fields ofemployee safety and environmental sustainability. Since then,we haven’t slowed remotely on improvement.

When I eventually retire after being at Tessy Plastics for themajority of my adult life, I can look back on my time here andthink about the journey, from where we were to where we arenow, with pride. I know when I step down, I do so comfortably,knowing our people, our planet, and our product at TessyPlastics are in good hands.

If you'd have told me 5 years ago that I would be presentingTessy's story at the United Nations someday, I would have toldyou that you were crazy. Here we are, looking back at 2017,realizing that was just one of many important steppingstonesfor our company. What an exceptionally long and rewardingroad we have traveled down, with everything falling into placebecause of the cooperation of employees, along with manyplayers throughout our supply chain. In 2017, I had the pleasure of presenting Tessy's story forvarious reporting organizations and customers around theworld, from New York and New Jersey all the way to Paris. Weare hoping to spread the word about our journey towardssustainability in an effort to assure other companies, especiallycontract manufacturers, that the initial struggle is worth it. Wewill continue to strive to be leaders in the field on corporatesocial responsibility and we look forward to seeing what thefuture holds!

- Cindy Bush, Director of Environmental, Health and Safety

1

2017 has been a year of drastic growth for Tessy Plastics Corp. We purchased a newfacility in Auburn, NY and finished an expansion on our North Plant in Syracuse, NY.This has rapidly increased our company space over the course of the year, while wealso saw a 6% increase in employees and an 11% increase in revenue.

With this growth comes responsibility, and we have taken proactive steps to ensureour footprint does not also grow exponentially. We expanded our recycling programand have explored many different ways to reduce our energy usage. Going into thenext year, we hope to explore ways to diversify our energy sources and develop newrecycling options.

CONTENTS

A year of growth...

Message from Leadership.................. Contents.........................................................

About Us........................................................ TP3......................................................................

Greenhouse Gas Emissions............ Waste................................................................

Water................................................................ Employee Demographics...................

Health & Safety........................................... Sustainable Procurement.................

2

1

2

3

4

5,6

7

8

9

9

10

ABOUT TESSY PLASTICS

Tessy Plastics Corp. voluntarily supports and complies with the UN Global Compact principles. This is evidentby our respect for human rights, fair labor practices, anti-corruption, responsible sourcing of materials andsustainable management of our environment. We will meet all national and international applicable laws,prevailing industry standards and other requirements as it relates to social accountability. We ask the sameof our suppliers.

Environmental, Health and Safety Policy

Tessy Plastics Corp. is committed to managing its business using manufacturing methods and practices thatare safe and environmentally responsible which will allow our people and planet to endure. We will complywith all applicable legal and other requirements to prevent pollution and reduce our impact on oursurrounding environment while maintaining the health and safety of our employees along with ourcommunity. By building awareness of our suppliers, employees and customers we will continually improveand reduce; occupational injuries, employee illness, waste, energy consumption and use of natural resources.Our stewardship initiatives and outcomes will be reviewed by Management and annually reported.

AmericanInstitute ofBaking

ISO 14001:EnvironmentalManagementSystem

ISO 13485: QualityManagementSystem forMedical Devices

Certifications

Corporate Social Responsibility Policy

Founded Headquartered

Ownership Financials Employees Square Footage

Locations

Specialty

Manufacturing Portfolio

Core business

1973 in Elbridge, NY by Henry Beck Skaneateles, NY

Family-owned, Privately-held Audited but Not Public

~1,100 Full-time Employees in 2017 ~1,750,000 by the end of 2017

New York State: Syracuse, Skaneateles,

Elbridge, and Auburn

Plastic Injection Molding w/ Precision

Automated Assembly

Component parts for medical devices,

consumer products, business machines,

electronics, and packaging

Cutting-edge medical components and

leading the market in micro-molding

3

TP 3

People. Planet.

Product.

People.

Planet.

Product.

Injury & IllnessPrevention

Workplace Safety

Employee Health &

Wellness

Water &EnvironmentalManagement

Waste Reduction

Climate ChangeMitigation

SustainableProcurement

Responsible Sourcing

Product ImpactConsideration

Our company mantra is People, Planet, and Product, or TP3 for short. We take the well-being ofstakeholders and the ecosystem very seriously, and ensure we consider them in every aspect of our

business. We believe that, as contract manufacturers, it is important to look both up and down our supplychain to consider the impact of our products, and procure raw materials in a sustainable manner.

Company Growth from 2010

% Change

4

274% Square

Footage

59% Revenue

41% Employees

35% Improvement in

Safety EMR

18%Emissions

TP 3 PePePP opople.

Planet.

uct.PrProddo uu

2017 Scope 1 Emissions

GREENHOUSE GAS EMISSIONS

Natural Gas (Heating)

87.2%

Carbon Dioxide 4.2%

Gas (Company Fleet) 3.2%

Diesel (Fleet/Generator) 2.9%

Propane (Forklifts) 2.5%

Annual Total Scope 3 Emissions

Annual Emissions

Fuel Use

Electricity-Use by Plant

mTons CO2e

*Scope 3 emissions were not adequately quantified until 2014,and our data precision continues to improve annually

Scope 1 Scope 2 Scope 3

2017 Scope 3 Emissions

EmployeeCommute (Gas)

62.4% 3rd-Party

Trucking33.7%

Airline Mileage 2.1% Employee Commute (Diesel) 1.8%

Scope 1 Total: 2,447 Mt CO2e

From 2016: 53% Increase With the purchase of a new

facility and an addition, we nowhave more square footage to heat

and cool.

Scope 2 (Location-Based) Total: 9,696 Mt CO2e

From 2016: 9.1% Decrease We switched many of our lights to

LED and upgraded multiple ACunits.

Scope 3Total: 4,095 Mt CO2e

From 2016: 14.1% IncreaseWe had an increase in

employees and havecontinued to improve

our data collection.

In 2017...

5

kWh

mTons CO2e

mTons CO2e

mTons CO2e

Scope

2

Scope 1

Scope 3

TP 3 People.

Planet.

Product.

Overall

2015 2016 2017RY2014 RY2015 RY2016

A-

A-

A-

A-

A

B

B

A-

A

B

A

Governance andStrategy

Risk & Opportunity Management

Emissions Management

Verification

2017 Sector

Average

D

C-

C-

D

B

A

B

A

CDP SCORE CLIMATE CHANGE

Annual energy savings as

a result of a retrofit to LED

lighting in our North Plant,

saving us about

$200,000

over the next5 years.

475,112 kwh

In the future... Targets

Reduce absolute emissions(Scope 1&2) by 20%* by 2025.

35% of our total energy-usefrom renewable sources by2020.

*Based on emissions from 2016

6

5 Hybrids

In the company fleet.

119,593 kwh

Annual energysavings as a result of

upgrading multiple

air conditioning units.

Total Energy from WindRECs and our Hydro Power

Purchase Agreement in 2017.

13,375 MWh

(That's 18.5% of our powerintentionally fromrenewable energy.)

*A location-based method reflects the average emissions intensity of grids on which energy consumption occurs

(using mostly grid-average emission factor data). We take intoaccount the EPA's eGRID for the Upstate NY Sub-region.

**A market-based method reflects emissions from electricity thatcompanies have purposefully chosen (or their lack of choice). We take

into consideration: Hydro Power Purchase Agreement, Wind RenewableEnergy Credits, and the EPA's eGRID for the Upstate NY Sub-region.

(Market-based Method**)

Hydro 37.8%

Nuclear25.6%

Natural Gas

22.6%

Biomass 1.7% Wind10.3%

Coal 1.7%

Oil 0.2%

Solar 0.1%

Sources of ElectricitySources of Electricity(Location-based Method*)

Hydro 31.6%

Nuclear31.4%

Natural Gas

27.7%Wind 4.7%

Biomass 2.1% Coal 2.1%

Oil 0.2%Solar 0.1%

WASTE

1 lb trash per person per day

1 lb tper

Target 1.36 lb trash

per person per day

1.2017 Average

Company Waste

That's more than theSpace Shuttle at launch!

2,324 tonswaste diverted in 2017

In 2017, we ran a

Positive employeefeedback rendered thisprogram worthy ofadoption, and we hope tohave it rolled out in thenext year.

% of Waste Diverted

In 2017... Landfill* Waste Total: 269 Tons

From 2016: 15.5% Decrease

Recycled Waste

Total: 2,324 Tons From 2016: 1.4% Increase

Total Waste

Total: 2,593 Tons From 2016: 0.4% Decrease

OfficePaper

MixedPaper

PlasticWrap

This will reduce the rate ofcontamination in our recycling.

This October, we launched a new color-codingsystem for recycling on the production floor.

190,609 kwh

In 2017, Tessy's wastecreated approximately

of energy, poweringhomes in the area.

*Trash in the county is brought to awaste-to-energy facility run by

the Onondaga County ResourceRecovery Agency

Divertedfrom

landfill:

Cleanroom Garb Plastic Parts/Purge

Resin/Regrind Corrugated Packaging

Mixed Paper Labels

Wood Pallets Metal/Foil

Bottles/Cans Electronics

Plastic Shrink Wrap And the list continues to expand...

disposable gloverecycling trial.

Tons

7

Target: 1 lb/employee/day

Landfilled Trash

"One maann'strashh....."

The grand total of money made fromselling recyclable materials in the last 6

years is close to $3 million!

$541,206 made selling recyclable

materials in 2017

TP 3

PePePePePPePeePeeePeePeePeeePPPePPPPPPPPP oopopoppppoppooppoopoopoopppppopopopopopopoopopopoppppopopppppopoppppplelelelelelelelelleleellllllele.......Planet.

PrPrPrrPrrPrPrPPPPrPPPrPPPrPPrrrodooodododododododooooo uuuccuccuccucucuccucucuuct.t.tttt

*Municipal waste in the county is firstsent to an incinerator, with the residual

ash ending up in the landfill.

Although this decreaseseems small, this means

that per dollar of sales, weare disposing of less

materials.

Landfilled Recycled Total Waste

2011 2017

Recycled

Landfill

Recycled

Landfill

WATER

TP 3

People.Planet.

Product.

Water Consumed Total: 20.9 million gallons

From 2016: 19.4% Increase Increased sales means increased

production. Injection moldingmachines need water to rapidly

cool the mold. If more presses arerunning, more water is needed.

Water Discharge Total: 0 gallons

Because we utilize a closed-loopwater recycling system, eventuallythe water used for production justevaporates, causing us to have a

zero discharge.

In 2017...

D

B

2016 2017 RY2015 RY2016

A-

A

B

A

A-

Overall

B

Context

Governance andStrategy

RiskAssessment

Direct risks andResponse

Indirect risks andResponse

2017 Sector

Average

D

D

C

D

D

A

A-

B

B

A-

CDP SCOREWATER

Closed-loop water recyclingsystem for manufacturing.

Nitrogen isreduced fromour sanitary

septic with theuse of ourBioclere™

WastewaterTreatment

System.

*State Pollutant DischargeElimination System is a

program designed to eliminatepollution in NY waters.

Reportable Non-compliances with the

EPA in 2017,maintaining ourSPDES* Permit

compliance

Zero

8B

2017

2016

5

10

15

20

25

2014 2015

Total Consumption

MillionGallons

Year

OUR WORKFORCE

All Employees

Male 67%

Female 33%

Senior Leadership

Male 80%

Female20%

Age

18-30 30%

31-50 47%

51-80 23%

TP 3

People. PlPlPlPlPP anananananetetetetetetetetetetetetetetettttetteteteeeeetee .....

.PrPrPrrPrPrPrPrrPrPrrPrrPPrrrPrrPPPrrrrP oddododododododododododododddoddododdoodooooodododo uuucucucucuucuuucucuccuct.t.t.ttt.ttttt.tt.ttt

IncidenceRate

DART Rate

Total Claims per $1 million of

payroll

ExperienceModification Rate

2012 2013 2014 2015 2016 2017

3.0

1.8

.90

.67

2.24

1.89

.75

.68

2.5

1.77

.82

.69

3.7

3.1

.80

.64

3.2

2.1

1.0

.62

3.3

2.4

.79

.59

SAFETY

HEALTH &WELLNESS

In 2017, all full-timeemployees were offered

company-subsidizedcomprehensive

healthcare plans.

of employeescontributed to a

401K in 2017.

$3 Weekly cost of the

company FitnessCenter in 2017.

for counseling andaddiction services.

EAP

(Employee Assistance Program)

100% Self-insured for Worker's

Compensation.

9

92%

14% increase in company 401Kmatching this year.

SUSTAINABLEPROCUREMENT

TP 3

People.Planett.

Product.

We released our newsupplier self-

assessment to help usensure ethical practicesand quality complianceacross our Tier 1 supply

chain. We exceeded ourgoal for participation and

now have a betterunderstanding of our

material sourcing.

In 2017...

SUPPLIER RESULTS

We support a

trade!

conflict-free* mineral

*Conflict-free refers to suppliers, supply chains, smelters and

refiners whose sources of conflict minerals do not finance conflictin the Democratic Republic of Congo or adjoining countries.

Tessy Plastics requires proof from suppliers who fall into the scopeof conflict minerals rule of the Dodd-Frank Act.

of our totalspend was

represented bythe respondents.

90%

SUSTAINABLE DEVELOPMENT GOALS

By the end of the year, we had committed to 3 of the UnitedNation's SDGs, which further enhance our TP3 program and

contribute to global sustainable development.

supplier facilityaudits were

completed in2017 by Tessy

Plastics.

4

10

Target: 80% of Tessy's Spend

% of Total Spendof Respondents

(90.1%)

% of Total Spend ofThose Not Responded

(9.9%)

Supplier Self-Assessment

25.43% have water risks. 13.16% have water opportunity.

37.72% monitor water w/o goal. 21% monitor and have water goal.

Of our respondents...

Quality Corporate Social Responsibility

Health and Safety Environmental Sustainability

Topics covered:

of our Tier 1 Suppliersresponded to theSelf-Assessment

75%

Planet

People

Product

TP 3

People. Planet.

Product.