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2013 Stericycle U.S. Sustainability Statement Protecting People, Reducing Risk through Sustainability. At Stericycle, our constant focus is providing solutions that protect people and brands, promote health, and safeguard the environment. Corporate responsibility and environmental protection are critical components of our company’s core purpose. And, being the leading provider of healthcare services requires Stericycle to operate with the highest standards. In our day-to-day operations and in long-term planning, Stericycle is guided by the philosophies of the triple bottom line which aligns financial performance along with social and environmental performance. In this, our first Sustainability Report for Stericycle, we outline many of our initiatives related to environmental protection practices. Today, Stericycle commits to capture new opportunities for sustainable growth by: • Providing services that sustain people, our customers, and the environment for the future • Managing our internal operations in socially and environmentally responsible ways • Continually striving to identify new modalities that minimize environmental impact Long-term, we share with many other corporations the goals of acheiving and zero emissions, use of renewable energy, and waste to resource processing. Those are enormous goals but the vision of those goals fuels the efforts that are made each and every day across our offices, our plants, and our transportation systems. In the pages that follow, we are pleased to share an overview of our sustainability services as well as our internal sustainability programs. We thank our supplier- partners, our customers, partner associations and our team members for their support and look forward to continued progress.

Sincerely,

Charlie Alutto President and CEO

1 Solutions for Business Sustainability Stericycle is proud to provide our customers a broad portfolio of services that are specifically designed to help facilities be environmentally responsible and achieve “green” goals while maintaining regulatory compliance. Our suite of sustainability solutions for business includes:

Sharps Management Solutions is a comprehensive proactive sharps management service that features eco-friendly, reusable Bio Systems containers. This service has reduced the number of accidental needlesticks among employees and prevented more than 140 million sharps containers from being landfilled.

Pharmaceutical Waste Solutions are designed to prevent pharmaceuticals designated as waste from entering the water table. Stericycle offers services to the healthcare and pharmaceutical industries as well as the manufacturers for the proper identification and destruction of pharmaceutical waste.

2 Integrated Waste Stream Solutions manages all hospital waste streams, 80% of which is highly regulated. This integrated service focuses on environmental best practices, training to comply with complex federal and local regulations as well as Joint Commission Standards. With this program, have increased from less than 10% of all waste to over 35%.

StrongPak offers retail establishments a turnkey solution for the proper disposition of special , including hazardous and pharmaceutical, while maintaining strict adherence with regulatory requirements for such wastes.

ExpertSUSTAINABILITY offers a complete line of services to manage unsalable products, byproducts and non-performing inventory from manufacturing, distribution and R&D. Our customized solutions include pre-disposal deconstruction, alternative use, recycling and waste-to-energy. These solutions can minimize waste volume, reduce disposal costs, and maximize opportunities for sustainability. Across all businesses served, 77% of goes toward recycling or beneficial use.

We’re constantly seeking to develop new services and technologies that expand our ability to protect people and safeguard the environment.

3 TRANSPORTATION SUSTAINABILITY

With approximately 1,600 trucks on the road each day, Stericycle consistently seeks opportunities to improve the sustainability of our fleet. Small changes can have a big impact when spread over our net- work. Here is a look at some of our transportation As new technologies sustainability initiatives. are proven successful, Hybrid vehicles were introduced as test vehicles within Stericycle during 2010 and 2011; Stericycle is committed their fuel performance and reliability are under evaluation to ensure the trucks generate higher to continue to trial fuel efficiency. and expand Compressed Natural Gas (CNG) vehicles were introduced into additional programs. our fleet during 2012. CNG is a cleaner burning fuel than diesel and reduces greenhouse gas emissions by 20-30% when compared to diesel or gasoline, according to studies by the California Air Resources Board (CARB) and other organizations. As each of these new technologies is proven successful within our fleet, Stericycle is committed to further roll-outs going forward.

4 Advanced routing technology is in the midst of a multi-year implementation. The introduc- TRANSPORTATION SUSTAINABILITY tion of routing software systems will allow Stericycle to route more efficiently and allow us to make the same number of stops with fewer trucks and fewer miles driven. Following a na- tionwide implementation, we anticipate our routing software will reduce miles driven thereby reducing fuel consumption and emissions.

Vehicle telemetry is currently being piloted. This system uses cellular-based technology that resides in each vehicle. This technology measures engine data along with details on movement of the truck. Based on the data captured by the system, Stericycle works with its drivers to improve their driving habits, with a focus on safety and fuel efficiency. By monitoring idle time and aggressive driving, Stericycle is able to increase the safety of its fleet and improve its fuel efficiency. While the program is still in initial testing, we believe the technology will yield fuel efficiency over existing baselines.

Vehicle specifications also play an important role in fuel reduction. Stericycle has implemented several vehicle controls to minimize environmental impact. Speed governors are used on all Idle times are preset and vehicles vehicles. These settings typically reduced automatically shut off when any vehicle the top speed of the units by 3 to 5 mph idles 5 minutes. which results in approximately .5 to 1 mpg in additional fuel efficiency on the units

Trailer fairings to increase the aerody- Automated manual transmissions namics of a truck and trailer, generating are the standard transmission on our over 5% fuel efficiency improvement for route trucks; implementing this change the tractor pulling the trailer. Fairings were increased the fuel efficiency of its straight added to all long-haul trailers trucks by over 7%. during 2012.

5 Percent of Waste Treated by

30% 10% 2012 2001

PLANT OPERATIONS SUSTAINABILITY As the nation’s leader in the proper management of regulated medical waste, Stericycle operates more than 150 collection and treatment facilities across North America. We have implemented a number initiatives to conserve energy as well as minimize wastes resulting from the collection and treatment processes. We are proud of our efforts to implement sustainability within our own operations and will continue to seek innovative solutions to minimize our impact. We are optimistic that over time, our operations will push toward nearly zero-waste.

Minimization of incineration treatment has been a key focus of Stericycle since our founding in 1986. Over the past 25 years, we have helped more and more customers properly segregate their waste streams, which reduces the need for incineration. We have been able to close many of our incinerator facilities, and we’ve helped hundreds of customers close down their on-site incinerators. Currently, about 10% of Stericycle’s U.S. waste is treated via incineration, down from more than 30% in 2001.

Stericycle was founded on the belief that there was a need for safe, compliant and environmentally responsible management of regulated wastes.

6 Reusable medical waste Energy efficiency initiatives tubs are the preferred transport are routinely evaluated through- container within Stericycle; we out Stericycle plants. Lighting actively encourage customers surveys have been completed to use these reusable containers at 55% of our facilities, and we instead of corrugated containers to minimize the have upgraded to high efficiency lighting at 14 amount of corrugated used in the healthcare locations, saving over 970,000 kwh of electricity environment. Stericycle has specifically initiated annually. Our boiler turn down and tune up pro- programs over the last 6 years aimed at converting gram focuses on maximizing in-use efficiency and high volume medical waste customers (typically minimizing energy use during down time; with hospitals) from corrugated containers to reusable these initiatives we have seen a 13.5% reduction containers. Also, many small quantity customers in therms used per day at fully implemented sites. (doctors, dentists, etc.) use reusable tubs, as it is All new forklift leases will require use of more en- an option we encourage for all customers to take ergy efficient electric forklifts, instead of diesel or advantage of. When corrugated is required, all propane powered lifts. Electric forklifts eliminate of our purchased corrugated containers include the fumes and emissions from the air in the plant, PLANT OPERATIONS SUSTAINABILITY recycled content. which is a benefit to our team members.

Utilizing the latest emission Corrugated cardboard control systems is a key ele- recycling is implemented in the ment to our commitment to clean majority of our regulated waste air standards. All plants meet or treatment facilities and one exceed state and local standards element of the ExpertSUSTAIN- for air emissions. Our plant teams carefully and ABILTIY service which manages unsalable products, constantly monitor air quality. As new technol- byproducts and non-performing inventory. Stericycle ogy becomes available, Stericycle will continue recycled more than 5,000,000 pounds of corrugated to evaluate enhancements and drive for better in the in 2012, eliminating an performance. estimated 7,500 tons of carbon dioxide equivalent emissions and saving 42,500 trees.

7 Awards and Recognition

Stericycle takes great pride in its commitment to the environment. We are honored by the recognition that our facilities have received across the country for their efforts in environmental sustainability.

Since 2007 our Yorkville, Wisconsin Electro Thermal Deactivation (ETD) treatment facility has been recognized by the Wisconsin Department of Natural Resources as a Green Tier Participant for Environmental Excellence. (http://dnr.wi.gov/org/caer/cea/environmental/ participants/stericycle/index.htm).

Stericycle received a Pretreatment Gold Award from the Albuquerque Bernalillo County Water Authority for demonstrating an exceptional level of compliance with wastewater discharge.

The Kansas Water Environment Association presented Stericycle with a Gold Award during 2010 to recognize the company’s efforts in improving the quality of the environment through water pollution control.

During 2011, Stericycle received “Going Green” Recognition by the Orange County (Florida) Environmental Department’s Pollution Prevention Program.

The Missouri Water Environment Association recognized Stericycle with the Gold Award for Outstanding Industrial Pre-Treatment for calendar year 2011.

In 2012, Stericycle received the coveted 2011 Waste Reduction Award from the California Department of Resource Recycling and Recovery (CalRecycle). Our efforts are helping to further reduce disposal at and continue moving California to a zero waste society.

Memberships Stericycle has been a member of Practice Greenhealth, a nonprofit organization dedicated to positive environmental stewardship within healthcare, since 2012. Within this organization, Stericycle is one of the 15-member Environmentally Preferable Purchasing Leadership Coalition which assists healthcare facilities in greening their supply chains.

For more information, contact Stericycle at 866-783-7422 or visit www.stericycle.com/contact-us

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