Product Stewardship: Putting It into Practice GCWellon, Manager, Responsible Care Methanex Corporation June 2010

Product Stewardship Definitions American Chemistry Council (ACC) Product Stewardship is the shared responsibility for understanding, managing and communicating the impacts to human health and the environment through the life cycle of chemical products. This life cycle involves the development, production, use, distribution and end-of-life management of products.

Product Stewardship Definitions International Council of Chemical Associations (ICCA) Product Stewardship is the industry’s management of the health, safety and environmental performance of chemical products throughout their entire life cycle. Product stewardship is a shared responsibility requiring close cooperation with suppliers and downstream users.

Product Stewardship Definitions Kodak Product Stewardship is an integrated business process for identifying, managing and minimizing the health, safety and environmental risks throughout all stages of a product's life in the best interest of society and our key stakeholders; customers, employees and shareholders.

Product Stewardship Practices Product Stewardship Code outlines principles that companies should address Each company has flexibility to develop and implement practices that fit that company PS Code: “Each company must exercise independent judgment and discretion to successfully apply the code to its products, customers and business.”

Product Stewardship Practices PS Principles  Ensure affected people know and understand the hazards & risks of the company’s products Methanex Practices  Technical Info & Safe Handling Guide, MSDS, MI Safe Handling Manual, safety videos, & more – developed and available to all stakeholders through Methanex web site  Letter to customers, other stakeholders describing info on web site and how to access  FAQ database including chemical properties developed, on company intranet and shared with all employees

Product Stewardship Practices PS Principles  Prohibit sale of product unless there is reasonable assurance of customer’s ability to manage it properly Methanex Practices  Assessments of customer’s product handling areas; improvement opportunities identified; recommendations

Product Stewardship Practices PS Principles  Establish selection criteria for suppliers and evaluate performance Methanex Practices  Risk-based approach to selection of logistics services providers; implementation of assessment program; improvement action plans in place; completion of actions  For example, CDI-T inspections of terminals and chemical product storage & handling areas  [Chemical Distribution Institute – Terminals = independent, 3 rd -party assessments by trained, certified inspectors]

Product Stewardship Practices PS Principles  Extend Responsible Care ethic to business partners  Provide information to customers / downstream users on safe storage, handling, use & disposal of products Methanex Practices  Responsible Care clauses in all contracts – customers, logistics services  Outreach to customers and logistics service providers – Safety Seminars & presentations, quarterly newsletter, response to queries

Product Stewardship Practices PS Principles  Understand how customers are managing risks with your product Methanex Practices  Learn more about downstream users and uses; learn about downstream management of product storage and handling; learn about downstream selection of carriers

Product Stewardship Practices PS Principles  Seek feedback on customer use or misuse of products  Be alert to customer comments; respond to product- related concerns Methanex Practices  Customers participate in reporting of incidents involving our product  Methanex process in place for addressing these concerns  Incident management system, Customer Complaint process, root cause analysis, corrective actions

Product Stewardship Practices PS Principles  Product security risk management – security plan to protect stakeholders from deliberate misuse of products Methanex Practices  Sell only to contracted customers with whom a relationship has been built, whose business we are familiar with, whose end products we understand  Have a Corporate Crisis Management Plan with regular exercises

Product Stewardship Practices PS Principles  Employee education – trained and knowledgeable on proper handling, use, recycling and disposal of products Methanex Practices  Employees trained; understand product hazards; know proper handling procedures; involve customers and suppliers in incident management; established service provider guidelines; respond to customers’ product- related issues / concerns

Product Stewardship Practices PS Principles  Public issues & concerns – involvement in industry associations (leadership, technical committees) and public forums to give and receive benefits of experience Methanex Practices  Active involvement with: o American Chemistry Council o Chemistry Industry Association of Canada o Methanol Institute o IMPCA Technical Committee o Formaldehyde Council o GPCA Product Stewardship Workshop !

Product Stewardship Practices PS Principles  PS Key performance Indicators – tracked on regular basis Methanex Practices  Established for our Supply Chain: o # of customer complaints o # of customer complaints open > 30 / 60 / 90 days o # of significant incidents / 100,000 tonnes shipped o # of minor incidents / 100,000 tonnes shipped o closure rate of incidents / completion of corrective actions o # of railcar leaks / 100,000 tonnes shipped by rail o # of barge leaks / 100,000 shipped by barge o % completion of railcar Preventive Maintenance Program o # of Safety Seminars given with breakdown by Industry Sector & number of participants

Product Stewardship