Emerson Power Transmission

8/6/2019 Emerson Power Transmission

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Emersons Environmental Report

Our Commitment to theEnvironmentOur Commitment to theEnvironment


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Responsible environmental

stewardship is a key corporate

policy that supports and enhances

Emersons leadership in many

areas. Environmental accountability

is integrated into our commitment

to developing and delivering

next-generation solutions and

technological innovations to our

customers while maintaining

cost-effective operations and

high shareholder value.

From the floors of our factories to

the design centers where we

research and create new products,

environmental responsibility is abasic guiding principle in our efforts

to also improve our efficiency and

productivity, and our management

process. Whether we are developing

a new system for cleaning parts

that eliminates the need to use

hazardous chemicals or simply

reusing packing materials in a

concentrated recycling program,

we are constantly searching for

new ways of incorporatingenvironmentally responsible

practices into our operations and

making them essential tactics in

day-to-day business.

Our Commitment to the Environment

At Emerson,responsibleenvironmental

stewardshipis an integralpart of soundbusiness policyand practice.


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Our environmental performance

Emersons environmental

performance begins with regulatory

compliance but by no means ends

there. Ongoing business practices

include an internal environmental

audit program, training, and

responsiveness to environmental

situations when they arise and

voluntary participation in programs

with the U.S. Environmental

Protection Agency and other bodies.

Our commitment stretches across a

broad horizon from protecting the

Earths natural environment and

preserving its resources to meeting

the expectations of our shareholders,

customers, employees, and

neighbors in the communities in

which we operate.

No single metric can measure

the contributions made by our

integrated, systematic approach

to environmental responsibility.

We fine-tune our environmental

programs, identify potential for

improvement, develop innovative

solutions, and sustain a sense

of vigilance that promotes

continuous improvement.

Recognized success

The 33/50 program conducted by

the EPA demonstrates our approach.

Participants in this voluntary

program were urged to reduce

releases or transfers of 17 high-

priority chemicals by 33 percent

over four years and 50 percent over

seven years. When the program

ended, Emerson had achieved a

77 percent reduction in the key

chemicals, far exceeding the

programs goals.

Sharing knowledge and expertise

across businesses is another

way we continually sharpen our

environmental focus and

performance. Most important,

Emerson people make the difference,

and we have learned that we can

count on their ingenuity and

determination to solve the toughest

challenges with the best solutions

for our customers, our shareholders

and our environment.

David N. FarrChief Executive Officer


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Emersons commitment to

the environment is outlined in

10 environmental principles that

define the philosophy we have

adopted and the practices we

require of ourselves to ensure

that we conduct ourselves in an

environmentally responsible

manner. These principles have

been translated into numerous

languages and are posted in

Emerson facilities throughout

the world.

| Emerson is guided by a

belief that all corporations have a

responsibility for the environment.

This belief is reflected in a

commitment by the Company to

avoid creating unacceptable risks to

the environment. This commitment is

an integral part of the Companys

management process and benefits

the Companys shareholders and

employees, as well as the

communities in which the Company

operates.

| The policy of the Company

is to not only comply with all

applicable laws and regulations but

also reduce and, where possible,

eliminate hazardous waste through

source reduction and recycling. All

wastes will be handled and disposed

of through safe and responsible

methods.

| The Company will minimize

the environmental, health, and

safety risks to its employees and the

communities in which it operates

through safe technologies, facilities,

and operating procedures and by

being prepared for emergencies.

The Company will encourage all of its

employees to be alert to such risks

and to report them promptly to

management so that appropriate

remedial measures may be taken.

| The Company will conserveenergy and work to improve the

efficiency of the products it

manufactures and of its own internal

operations.

| The primary responsibility

for implementing the Companys

environmental principles rests with

the Companys division presidents.

The Corporate Environmental Affairs

Department shall assist the divisionpresidents in this endeavor.

| The Company will conduct

an annual training program for the

environmental managers of the

Companys sites, particularly

manufacturing operations. The

programs will address such matters

as changes in relevant laws and

regulations, pollution prevention and

waste minimization practices, and

technological developments.

| The Companys operations

will be periodically audited to

determine compliance with

this policy.

| The Ethics and Environmental

Policy Committee of the Company is

responsible for overseeing the

strategy the Company is pursuing as

evidenced in its environmental

principles and policy, and will

periodically report to the Audit

Committee of the Board of Directors.

| The Company will seriously

consider and reasonably cooperate

with government agencies in

voluntary waste reduction and

energy conservation programs.

| The management of the

Company will strive to protect the

investment of the Companys

shareholders by reducing the

Companys potential environmental

liability, as well as altering its

manufacturing operations to

minimize waste

generation, thereby saving costs.

Environmental Principles

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Responsibility for environmental

stewardship reaches from the

Board of Directors to every plant,

where a manager is designated

to monitor environmental

performance and ensure

compliance with internal and

external standards.

We believe environmental stewardship

is everyones responsibility, starting with

the Board of Directors.

The Board's Audit Committee reviews

and provides oversight to Emerson's

environmental programs and projects.

The Ethics and Environmental Policy

Committee, composed of corporate

officers, oversees all of Emersons

environmental activities and reports to

the Board of Directors. A corporate vice

president of environmental affairs and a

staff of professionals work closely with

the Company divisions around the world

to develop and implement

environmental programs. In addition to

managing training and audit programs

and environmental projects, the

Environmental Affairs Department serves

as a clearinghouse for the divisions,

sharing successful environmental case

histories from inside and outside the

Company, relevant materials on

environmental issues, and literature on

new environmental products and

alternative manufacturing processes.

It is also the responsibility of each division

president to ensure that the guidelines

and procedures are being followed and

carried out at the operating level. The

Emerson environmental program could

not be effective without the hard work of

all Company employees.

At each division, at least one manager

has been appointed to oversee and

coordinate environmental activities.

In addition, each plant has a

designated staff member who is

responsible for day-to-day

environmental compliance matters.

Environmental Accountability

Environmental programs are implemented

at Emerson facilities worldwide.


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A vigorous training program

and rigorous audits are

the centerpieces of

Emersons commitment to

the environment.

Comprehensive training and audit

programs are the centerpieces of

Emersons environmental programs,

ensuring that environmental policies

and practices are carried out

consistently and uniformly

throughout our worldwideoperations.

The training and audit programs

are supported by a detailed

Emerson Environmental

Management Practices Manual

that outlines standards and goals in

areas from regulatory compliance,

to housekeeping, to equipment

and materials management. The

manual has been distributed around

the world in English, Dutch, German,

Chinese, Japanese, French, Italian,

and Spanish. In North America,

information regarding new

regulations and practical compliance

strategies is periodically distributed.

Environmental Training Program

Our Environmental Training Program

is the foundation of our commitment

to the environment. The training

conferences, conducted by Corporate

Environmental Affairs staff and

outside consultants and attorneys,

focus not only on compliance but also

on efforts division managers can take

to prevent pollution, reduce waste,

and conserve energy beyond those

activities mandated by law.

Each year, more than 350 employees,

including plant environmental

managers, division environmental

coordinators, and plant managers,

attend the training sessions,

which have been held around the

world in the United States, Canada,

Europe, India, China, Japan, Brazil,

and Mexico.

Environmental Training and Audit Programs

Emerson environmental managers conduct regular on-site reviews to ensure compliance

with environmental regulations.


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The program has two primary goals:

Give employees a practical

understanding of the requirements of

environmental laws and regulations

as they apply to the Company

Share ideas on how to reduce the

generation of waste and enhance thequality of the environment

The training conferences cover a

broad range of topics, including:

Emersons environmental principles

and policies

Good environmental management

practices

Legal and regulatory requirements

Management of chlorofluorocarbons

and related materials subject

to international conventions

and agreements

New developments in environmental

laws (by country)

Issues in European Union policy

and regulation

Pollution prevention and

waste minimization

This thorough training program

gives many Emerson employeesa better understanding of

environmental issues as they affect

the Company and its facilities. It also

provides an opportunity to reiterate

the importance of Emersons

environmental commitment and

the role employees play.

Environmental Audit Program

Each year, about 20 percent of

Emerson facilities are audited by

outside consultants for

environmental compliance, a practice

recommended by the Ethics and

Environmental Policy Committee

in the early 1990s. Under this

continuing program, all Emerson

manufacturing facilities

no matter where they are on the

globe are audited.

Prior to an on-site inspection by

the environmental consulting firm,

each plant is required to complete a

detailed questionnaire provided by

the Corporate Environmental Affairs

Department. Following the formal

audit, the outside auditor prepares

a written report that is forwarded

to the division president. The

Corporate Environmental Affairs

Department then works with the

division president and facility

personnel to ensure that all audit

findings are addressed.

In addition to regularly scheduled

audits, a number of surprise audits

are conducted each year at Emerson's

facilities in the United States, Europe,

Canada, and Mexico. Either scheduled

or surprise audits take at least one

day and may take several days,

depending on the size of the facility,

as auditors conduct detailed

inspections of the facility and

environmental records.

The purpose of the audits is to

evaluate environmental regulatory

compliance, as well as the overall

environmental management

practices of each plant. The audit

process encourages plant

environmental managers to look

beyond basic compliance to explore

ways to implement innovative and

productive environmental

management practices.

In any year that a domestic site is

not formally audited, the division

environmental coordinator visits the

plant and completes a

comprehensive checklist to ensure

compliance with environmental

regulations. Corporate environmental

staff oversees this annual process.

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Across Emerson, products

and operations are evolving

in environmentally

friendly ways.

Emerson continuously improves its

manufacturing process and product

line in ways that benefit the

environment. The Company

encourages all of its divisions to

reduce consumption of energy and

to institute recycling programs thatminimize emissions and conserve

resources. Here are some examples

of how Emerson is using to the latest

technological advancements across

the Company to live up to its

commitment to the environment.

Thermostat Recycling

Emerson Climate Technologies

Emerson has teamed up with

industry competitors to establish

the Thermostat Recycling

Corporation (TRC), an organization

that collects old mercury-switch

thermostats returned by heating,

ventilating, and air conditioning

contractors. This program ensures

that the mercury inside old

thermostats will not find its way

into the environment.

Power Generation

Emerson Industrial Automation

Windmills have long been recognized

as an environmentally friendly way to

generate power. The use of wind

power is growing rapidly, especially in

Europe where usage was up 40 percent

in 2002. Emerson is currently the

second-largest manufacturer of

alternators used in windmills in the

world, with the goal of becoming No. 1

in the near future. With Emerson

technology driving this growth, it is

benefiting the environment across

the globe.

Water Recycling

Emerson Process Management

Manufacturing pressure transmitters

requires ultrapure water for cleaning.

Producing the ultrapure generates a

wastewater which was destined for

the sewer. Recognizing that the

wastewater might be better used

elsewhere, Emerson now uses the

wastewater as a gray water supply

for the facilities restrooms.This allows

the facility to avoid using almost one

million gallons of water each year.

Environmentally Friendly Products and Operatio

Emerson alternators offer the world a

cleaner, friendlier way to generate power.


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Motor Emissions

Emerson Motor Technologies

Emerson is working with Caterpillar

to develop new technologies that

will help reduce the vehicle emissions

that result from the idling of a diesel

truck engine. The averagediesel truck idles 1,800 hours a year,

burning one gallon of fuel for each

of those hours. The new engine

accessories will help reduce the need

for truck idling, providing for

significantly cleaner air quality and

reducing fuel consumption.

Power Control

Emerson Network Power

Emerson offers an extensive set of

power control systems that keep

businesses up and running 365 days

a year. Emersons backup electric

generators are carefully managed

to determine how much power is

needed to feed demand and

shut down excess supply accordingly.

To increase energy efficiency up to

80 percent, Emersons ASCO Power

Control Systems use system heat,

which is a byproduct of a generator,

to maximize total output of energy

from fuel.

Cleaner Boiler Systems

Emerson Process Management

Increases in fuel costs, power demands, and

the need to reduce power generation costs

have forced the electric utility industry to

improve efficiency. Emerson is helping

power plants achieve this objective whilealso reducing the emissions of green house

gasses. The Boiler Combustion Optimizer

helps increase boiler efficiency while

reducing NOx and CO emissions levels.

Solderless Tools

Emerson Professional Tools

Soldering copper tubing has

traditionally been a time-consuming

job that required lead solder.

Emersons ProPress System is a new

copper crimp joining method that is

easier, faster, and safer than traditional

soldering. The system uses water

pressure to join pipes, resulting in a

more environmentally friendly way to

complete construction projects.

Solderless Processes

Emerson Appliance Solutions

Solderless manufacturing is occurring

inside Emerson as well. In an Emerson

plant that manufactures electric

motors, a new process eliminates the

lead normally used in soldering.

Remote Monitoring

Emerson Climate Technologies

Thousands of supermarkets across

the country are filled

with refrigeration

equipment that is

necessary to keep

food fresh. Emerson

has intelligent field

devices that can

communicate with

a central control

center that

monitors individual

refrigeration cases

within a grocery

store. Through this service, Emerson

technicians can spot inefficient

equipment and immediately have it

fixed, saving the supermarket and

the environment significant

energy consumption.

New technology developed by Emerson is powering solderless

tools that are safer for the environment.


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The success of Emersons

environmental program is

defined by solid results.

The program is making measurable

impact and has garnered third-party

recognition.

The Companys commitment to

personnel training is helping

communicate the importance of

the environmental principles

throughout the organization.

By The Numbers

U.S. 33 /50 Chemical Emissions Reductions

Recognized by the EPA for its success in reducing

chemical emissions, Emerson continues to reduce

emissions in the United States long after the

voluntary 33/50 program ended.

Worldwide Chemical EmissionsCompared to Net Sales

Emissions compared to sales have

decreased dramatically over the years.

Fines and Penalties

The Emerson Environmental Program

has been instrumental in helping

the Company meet environmental

guidelines, keeping fines and penalties

to a minimum.

Worldwide

(in

thousandso

fU.S.

dollars)

Internal Assessment

Emerson assesses a number of facilities

each year as part of its rigorous

internal evaluation program that

ensures compliance with local

environmental laws and the Company's

guidelines. Each manufacturing

location is audited at least once every

five years.


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Emerson

Corporate Environmental Affairs

Mail Station 3800

8000 W. Florissant Avenue

P.O. Box 4100

St.Louis, MO 63136-8506

GoToEmerson.com

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Emerson Power Transmission