Implementing ISO 14001: Novozymes Environmental Policy

1. October 9, 2001 Novozymes North AmericaISO 14001 EMS Jack Blackmer Environmental Coordinator Novozymes North America, Inc. Franklin County, North Carolina

2. What Will Be Covered • How we implemented our ISO 14001 EMS • Special focus on our approach to: • Identifying environmental aspects/impacts & determining significance • Determining legal & other requirements • Results - benefits & challenges • Keeping the system up-to-date

3. CEO Signed ICC Charter in 1991 Environmental Committee Corporate Environmental Department Environmental Policy Corporate Annual Environmental Reports International Environmental Network Group Production Sites All sites ISO 14001 in 2000 SiteEnvironmental Management Systems

4. Why ISO 14001? • Integration with Quality System (ISO 9001) • Addresses most ICC Charter Principles • Structure provides for sustainability • Potential benefits • Environmental benefits • Business benefits

5. EQS Environmental Quality System Was designed according to requirements in • ISO 14001 Environmental Management System Standard • International Chamber of Commerce Business Charter for Sustainable Development

6. NZNA Environmental Policy Purpose This document describes the Novozymes North America, Inc. Environmental Policy that provides the framework for the NZNA Environmental Quality System (EQS). Responsibility This document is applicable to all employees at NZNA. Policy Statement Novozymes North America, Inc. will maintain an Environmental Quality System to continually improve environmental performance. The EQS is based on the Novozymes environmental policy, relevant International Chamber of Commerce (ICC) Business Charter Principles for Sustainable Development, applicable principles of the U.N. Convention on Biological Diversity, and requirements of the ISO 14001 standard.

7. NZNA Environmental Policy (Cont.) Compliance is a Priority The NZNA management team recognizes environmental management as an important management priority and as a key to sustainable development. Policies, programs, and practices for conducting operations in an environmentally sound manner will be established and maintained, using compliance with applicable federal, state, and local legal regulations as a starting point. It is the responsibility of all NZNA employees to participate in the development, implementation and maintenance of EQS policies, programs, and practices. Prevention of Pollution We will implement practices to prevent pollution, conserve natural resources, and reduce and beneficially reuse wastes. Continual Improvement NZNA will continually improve EQS policies, programs, and environmental performance, specifically taking into account technical developments, scientific understanding, and community expectations. Goals and objectives will be set and performance towards them periodically evaluated.

8. NZNA Environmental Policy (Cont.) Employee Education NZNA will educate and train employees in the environmental aspects of their work activities and encourage them to conduct these activities in an environmentally responsible manner. Prior Assessment NZNA will assess environmental impacts before starting a new activity or project and, where feasible, implement measures to minimize environmental impacts. Communication NZNA will communicate the environmental policy, environmental practices, and progress towards environmental goals to employees and other stakeholders.

9. Key Points of the Environmental Policy • Do it right! - Follow procedures to comply with regulations and NZNA requirements. • Keep it clean! -Prevent pollution by following instructions, preventing releases, and containing any that do occur. • Make it better! - Do your part by suggesting ideas for improvement through the use of Preventive Action Requests.

12. Significant Aspects • Lab Waste • Unloading Ammonia Trucks • Use of Filter Pads in Recovery Plant • Maintenance Waste • General Solid Waste (Production) • Spent Bio-Mass Lime Operation • Raw Material Unloading • Freon Use in Chillers • General Water Usage • General Energy Usage • Granulation Micro-Dust

14. Aspects for Objectives & Targets • Lab Waste • Unloading Ammonia Trucks • Use of Filter Pads in Recovery Plant • Maintenance Waste • General Solid Waste (Production) • Spent Bio-Mass Lime Operation • Raw Material Unloading • Freon Use in Chillers • General Water Usage • General Energy Usage • Granulation Micro Dust • Cooking Oil • Erosion • Disposable Serviceware in Cafeteria

15. Legal & Other Requirements • Permits • Federal regulations • State regulations • Local regulations & ordinances • Pre-treatment requirements (ex. ICD) • Charters, associations, & agreements • Management directives

16. NZNA Approach • Responsibility Matrix • Primary • Supporting • Communication • Applicability of charters • ICC Charter • UN Convention • Corporate directives for goals • Keeping up-to-date

17. Employee Training Quiz • What are key points of the site Environmental Policy? • What are the site-wide Objectives & Targets? • What are the environmental aspects of your job duties? • What can you do to minimize environmental impact? • What do you do if there is a spill? • Preventative and Corrective Actions. What do you do if you see a problem, or see a way to improve?

18. Integrating Environmental Into SOP’s In order to support our Environmental Quality System (QS.EQ.1000 NNBNA ENVIROMENTAL POLICY), this system will be operated according to this procedure to reduce environmental impact and conserve natural resources whenever possible. This operating procedure was written and this system designed to accomplish these goals. All items in this procedure pertaining to EQS will be in bold type. Work InstructionComment

20. NNBNA Distribution Department Bulk Receiving Checklist • Version:2 Prepared: MEdw File:W:\DIST_ISO\8600 No:8916.8600 Valid Date: 01/01/00 Page:1/1 • Before starting the receiving of Raw Material Bulk Loads, the following needs to be checked: • Section 1: Driver Hook up and Emergency Information • Item # Description Checked • 1 Carrier name. • 2 Product and date. • 3 Does driver have MSDS for required materials? • Does driver have proper safety equipment? If not, provide and notify Purchasing. • 5 Has driver been informed of what to do during an emergency? i.e. eyewash stations, safety • showers, spill kit, and control room location. • 6 Has driver been in formed where process and storm drain are located? • 7 If trailer is unhooked from tractor chock wheels. • 8 Has QC approved material before hook up? • 9 Was receiving tank/silo locked prior to unloading? If not notify Supervisor. • 10 Has driver been informed of proper hook up line? • 11 Has driver connected ground strap to truck? (When unloading Sugar, Corn Starch, and Soy Grits) • 12 Does driver know to stay within 20 feet of controls during unloading?

21. Section 2: Startup and disconnect • Item # Description Checked • 1 Has control room confirmed tank capacity? If tank will not hold material call Purchasing. • 2 Are seals on tanker intact? • 3 If a leak occurs hit emergency shut off and contact distribution handler? • 4 Has material handler observed startup and ensured there are no leaks? • 5 Has material handler ensured drivers are wearing PPE? • 6 Has driver been informed to leave area clean? • Section 3: After receiving is complete • Item # Description Checked • Has station been checked for cleanliness? If station is left unacceptable, clean and notify Supervisor. • Has tank/silo been locked? • Completed by: _________________________________________ Date:______________ • Section # Comments Initials • SUPERVISOR RESPONSE • Initials: Corrected Problem: Work Order Written AR Written • Date: Yes No Yes No Yes No • W/O #: • Was Production Stopped: Yes No If yes explain. • Was Waste Management Notified Yes No

22. 2000 Objectives and Targets • Improve hazardous waste management and measurement (Passed EPA/DENR Inspection) • Minimize potential for ammonia release during unloading operation (Alarms & procedures) • Reduce environmental impact from use of filter pads (Carryover to 2001) • Reduce volume of solid waste generated per NZNA unit Carryover to 2001) • Eliminate the disposal of cooking oil (Now recycled)

23. 2000 Objectives & Targets – Cont. • Minimize excessive lime releases during lime unloading (Larger baghouse filter) • Evaluate and reduce the impact of raw material unloading on Stormwater runoff (Drain conversions & procedures) • Minimize the potential for Freon release (New Chiller & leak detection) • Increase eco-productivity index of general water usage (4% improvement) • Increase eco-productivity index of general energy usage (9% improvement)

24. Primary Benefits • Improved management of lab hazardous waste • Reduced impact on Stormwater • Reduced releases of Freon • Reduction in water and energy usage per unit of production • Identified opportunities for compliance improvement • Improved site-wide environmental awareness & understanding of environmental impacts • Dedicated “champions”

25. Management Support • Priorities • Stressed importance of implementation • Allocated personnel time for the project • Conducted frequent Management Reviews • Expenses • Internal Costs - $125,000 • Consulting - 15,000 • Certification - 11,200

26. Challenges • Personnel time to implement and maintain • Conflicting priorities • Keeping the system up-to-date as changes are made

27. WHERE ARE WE HEADED?

28. 2001 Significant Aspects Lab Waste Unloading Ammonia Trucks Use of Filter Pads in Recovery Plant Maintenance Waste General Solid Waste (Production) Raw Material Unloading Freon Use in Chillers Process Wastewater Irrigation – Piping Failures General Water Usage General Energy Usage

29. 2001 Objectives & Targets • Minimize Potential for Freon Releases • Increase Solid Waste Eco-productivity index by 5% • Increase Water Eco-productivity Index by 1.5% • Increase Energy Eco-productivity Index by 1.5%

30. 2001 Objectives & Targets – Cont. • Improve Hazardous Waste Management and Measurement • Improve PWW Treatment Capacity • Evaluate Alternatives to Minimize Impact of PWW Spray Irrigation • Improve Prior Environmental Assessments of Process and Equipment Changes

31. Assessment of Changes • New Raw Materials • Significantly Greater Amounts of Existing Raw Materials • Equipment Changes • New Processing Technology • Potential affects on compliance, waste treatment, recycling & disposal • New legal and other requirements

33. Reaching Outside the Organization • EPA Multi-State Working Group • DENR State ISO 14001 Pilot • EPA Performance Track Program • UN Convention on Biological Diversity • Suppliers • Raw Materials • Transportation • Customers

34. BALANCED SCORECARD

35. Triple Bottom Line • Financial • Environmental • Social

36. Balanced Scorecard • Year 2000 Goals • Water Eco-Productivity Index • ISO 14001 Certification • Site-wide Test & Dunking Booth

38. Balanced Scorecard • Year 2001 • Solid Waste & Recycle EPI • Assessment of Changes

39. KEEPING UP TO DATE ON REGULATORY CHANGES

40. SOURCES • Industry Associations • Stakeholder Committees • Federal & State Registers • Update Newsletters • List Servers

41. KEY AREAS • Air Regulations • Water Regulations • Toxic Releases Inventory • New & Revised Regulations • Permit Rule Changes • Emission & Discharge Standards

42. Criteria Pollutants CO Pb PM-10 O3 NOx SOx

43. NITROGEN OXIDES • Formed when burning fossil fuels • Coal • Oil • Natural Gas • Contribute to Ozone formation • EPA NOx SIP Call – New State Rules • EPA nationwide regulatory approach

44. PARTICULATES • General dust • <10 microns • <2.5 microns

45. WATER REGULATIONS • Nutrients • NC River Basin Rules • EPA – Total Maximum Daily Load • Triennial Review of State Water Quality Standards

46. Toxic Releases Inventory • Annual reporting • Listed compounds and compound categories • Threshold quantities • Releases, treatment, transfers, disposal, recycling • Approved methodologies

47. ENVIRONMENTAL FACTS & FICTION

48. MIND BOGGLING! • Federal Tax Code – Approximately 8,000 pages • Federal Environmental Regulations – Approximately 30,000 pages!

49. CONTAMINATION LEVELS • Percent (1/100) • Thousandth (1/1000) • PPM (1/1,000,000) • PPB (1/1,000,000,000) • PPT (1/1,000,000,000,000) • PPQ (1/1,000,000,000,000,000)