Benefits of an Environmental Management System Andrew Frisbie Wabash 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 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

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 ,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 1 st Shift Tuesday, Feb. 10, 2009 Wednesday, Feb. 11, 2009

Cost of Operations Using Dec. 9 th and Feb. 10 th 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

Green Marketing Initiatives Sales 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