General Motors Greening the Supply Chain GA P 2 AD Natural Leaders Summit 2006

1. General Motors Greening the Supply Chain GA P2AD Natural Leaders Summit 2006 Chris Boehle Sr Environmental Engineer Environmental Services Worldwide Facilities Group

2. GM Environmental Milestones • 1991 Environmental Principles • 1994 Waste Wise Partnership • 1995 Climate Wise (RCPP) • 1998 ISO 14001 • Supplier Environmental Advisory Team • Greening the Supply Chain (Saturn) • 2000 Design for the Environment • 2001 Supplier Communication • Environmental Statement of Requirements • 2002 Supplier Partnership • 2003 Global EMS • 2004 Waste Wise Hall of Fame • 2005 Global Automotive Declarable Substance List

3. GM Environmental Principles • We are committed to actions to restore and preserve the environment. • We are committed to reducing waste and pollutants, conserving resources, and recycling materials at every stage of the product life cycle. • We will continue to participate actively in educating the public regarding environmental conservation. • We will continue to pursue vigorously the development and implementation of technologies for minimizing pollutant emissions. • We will continue to work with all governmental entities for the development of technically sound and financially responsible environmental laws and regulations. • We will continually assess the impact of our plants and products on the environment and the communities in which we live and operate with a goal of continuous improvement.

4. Waste Wise Partnership • GM joined WasteWise in 1994 as a charter partner, distinguished itself by implementing innovative waste reduction activities and encouraging its suppliers to do the same. • In the U.S., from 1998 to 2003, GM facilities reduced its WasteWise-targeted waste by 37 percent • Scrap Metal • Cardboard • Wood • Plastics • Glass • GM has received several national Waste Wise awards

5. Climate Wise - RCPP • Drive environmental conservation efforts to the supply chain • Aid during lean manufacturing workshops with Supplier Development Engineers • Supplier Development utilized this tool to demonstrate the interrelationship and impact of process waste to our environment. • Key impacts for suppliers • Do it right the first time • Impacts of poor process control and scrap on environmental metrics

6. ISO 14000 - EMS • SEA Team formed – Supplier Environmental Advisory Team • Requires that Suppliers become EMS Certified by the end of 2002. • GM Begins its Worldwide Implementation of the ISO 14001 Environmental Management System. • V.P. World Wide Purchasing & V.P. Environment & Energy role out the Tier 1 supplier requirement for an Environmental Management System (www.supplypower.com) • Greening the Supply Chain Project with Saturn

7. Design for the Environment • DfE Team created and tasked with reducing facility environmental impacts • Life Cycle Management • Procurement • Transportation • Manufacturing • Assembly • End of Life

8. Supplier Communications • Gap Analysis • Environmental Statement of Requirements • ESOR included in GM Supply Power • Supplier Symposium

9. Anywhere in the DOCUMENT CENTER You will be able to get toEnvironmental Sourcing Information

10. Environmental Statement of Requirements • Management Accounting (EMA) for the international community • Global Recycling Network (GRN) - www.grn.com: GRN is an electronic information system exchange that specializes in the trade of recyclables reclaimed in Municipal Solid Waste streams, as well as the marketing of eco-friendly products • GM Supply Power - http://www.gmsupplypower.com/ • GM Ability - http://www.gm.com/company/gmability/environment/ • GMW3059 - Restricted and Reportable Substances this site also has the European Union - End of Life Vehicle Information - http://www.gmw3059.com: GM's Materials Reporting website is designed to assist GM Suppliers in fulfilling GMW3059, GM's Restricted and Reportable Materials For Parts Specification. • International Material Data System (IMDS) - http://www.mdsystem.com • Michigan Manufacturing Technology Center (MMTC) - http://www.mmtc.org/sp • Original Equipment Suppliers Association (OESA) - http://www.oesa.org: OESA provides a strategic forum for the automotive industry’s original equipment suppliers. • U.S. EPA Office of Pollution Prevention & Toxics (OPPT) http://www.epa.gov/opptintr/suppliers/pressrelease.htm

11. Supplier Partnership • Provide a self-sustaining forum for large, medium and small service and product vendors who deal with small, mid-sized and large vehicle manufacturers to develop and share tools, information, knowledge, good practices and technical support to ensure that the suppliers' products and their processes provide environmental improvement and cost savings to SP participants

12. Supplier Partnership Goals • Maintain a self-sustaining 501(c)(6) trade association, which will demonstrate that by working cooperatively within the supply chain, private sector companies of all sizes can achieve real environmental improvements while providing value to the participants. • Provide a mechanism where automotive suppliers through the relationships developed in SP can collect and share information, data and knowledge on ways to improve their environmental performance and, by utilizing EPA communication channels, share the knowledge gained through SP activities with companies and organizations who are not members of SP. • Implement an ongoing awards program to recognize leading suppliers who actively participate in and support SP activities. • Develop, as appropriate, specific tools, reports or documents that address the vision, mission and needs of the organization. • Provide a foundation for future activities designed to recognize and encourage new approaches in developing environmental policy

13. Supplier Partnership Development

14. Supplier Partnership Map

15. GSC Deliverables

16. “Lean” eliminates... Defects Overproduction Waiting Non-utilized people Transportation Inventory Motion Extra processing “Green” adds... Material efficiency Energy efficiency Toxic material reduction or substitution Waste Reduction (e.g.) Solid/hazardous wastes Packaging wastes Emissions to air & water GSC Tools

17. Lean and Clean Achievements • Efficient use of labor, time and capital • Efficient use of energy and raw materials • Maximum quantity of products from least number of inputs • Create a pathway for growth without an equal rise in consumption • Sustained business viability • Supplier defined and led solutions

18. Supplier Partnership Achievements • Recycle Die-Lube. After initial cost of $2400 for equipment, would result in reuse of 50 gallons a week, generating a weekly savings of $455. Would also reduce disposal cost of die lube oil by $6.75 a week, resulting in total annual cost savings of $22,164 • Implementation of pull system, reducing finished goods inventory for specific products lines by 33% • Lean opportunities identified $323,487 in cost savings with a one-time conversion to cash at $446,880 • Reduce minimum buy amounts, increasing number of deliveries. Annual savings of $840, by reducing carrying costs of inventory 2% per month. • 17% reduction of process water, 50% reduction in downtime • Eliminate stretch wrap. With customer approval, the opportunity may exist to eliminate the use of stretch wrap packaging materials, reducing landfill waste and recurring direct material cost. After an initial cost of $16,675 for material and labor to construct new packaging containers, an annual savings of up to $18,000 could be achieved, with payback of less than one year

19. EMS Achievements • ISO 14000 Facility Certification (98.8%)

20. Waste Wise Achievements • General Motors was inducted into the U.S. EPA WasteWise Hall of Fame in recognition of 10 years of successful waste reduction accomplishments. This induction marks the fourth consecutive year that the corporation has been recognized by the EPA for its successful waste reduction and recycling practices.

21. Waste Wise Accomplishments • Recycling Gains (Tons 2001-2004) • Carpet 314 • Corrugated Cardboard 2,709 • Office Paper 36 • Plastics 1,812 • Printer Toner 13 • Wood Pallets 6,759

22. Continual Improvement • Global Automotive Declarable Substances (GADSL) • Lead Common OEM Reportable Substance List for Chemicals in Parts beginning in 2002 through AIAG • Published in Feb 2005 • www.gadsl.org

23. GM Environmental Supplier Partnerships • Deriving Common Principles • Developing Mutually Beneficial Goals • Supporting Global EMS • Committing Resources for Life Cycle Management • Driving Continual Improvement