Suppliers Partnership for the Environment (SP)

Suppliers Partnership for the Environment (SP) DfE Work Group Meeting January 21, 2004 Troy, MI Hosted by Delphi Corporation DRAFT Minutes

SP’s DfE Co-Chair, Mr. John Resslar, GM, called the meeting to order at 9:00am EST with the following individuals present:

MEMBERS: Dave Naughton, Chemico Systems, Inc. Ross Good, DaimlerChrysler Corporation Nakia Simon, DaimlerChrysler Corporation Angie Coyle, Delphi Corporation Brad Strohm, Delphi Corporation Leonard Sweet, Delphi Corporation Garry Balthes, FlexForm Technologies Dianne Boss, GM John Bradburn, GM Terry Cullum, GM Casey Essary, GM Renee Mietz, GM Robin Richey, GM Candace Wheeler, GM Dave Duesterberg, Johnson Controls, Inc. Michael Stoelton, Johnson Controls, Inc. Rebecca Spearot, Lear Corporation Vijay Tandel, Lear Corporation Mike Barto, Petoskey Plastics, Inc. Amy Goldman, SP Steve Hellem, SP Gary Mayo, Visteon

GUESTS: Claudia Duranceau, Ford Motor Company John Sullivan, Ford Motor Company Yvonne Hopkins, Plastic Omnium George Cary, Quaker Chemical Laura Brandt, TRW Automotive Lise Laurin, EarthShift William Franklin, Franklin Associates Bev Sauer, Franklin Associates Marc Binder, PE Europe GmbH Maria Leet Socolof, Univ. of Tennessee Don Duval, University of Toronto Susan Sawyer-Beaulieu, University of Windsor

Mr. Resslar welcomed and thanked everyone for attending the meeting. He reviewed SP’s anti-trust guidelines and recommended that each member indicate in their notes of the meeting that the guidelines were discussed. SP DfE Work Group Meeting DRAFT Minutes January 21, 2004 Page 2 of 4

Mr. Resslar recognized and thanked Mr. Brad Strohm, Ms. Angie Coyle and Delphi for coordinating and hosting the meeting. Mr. Resslar noted that Mr. Tom Murray and Ms. Kristin Pierre, EPA, were unable to attend the meeting due to a travel restriction.

Mr. Resslar provided an overview of the Suppliers Partnership for the Environment (SP) and how it was created from the EPA-GM Saturn “greening the supply chain” pilot project. He explained that in order to be a member of SP a company must supply goods, and any related services, which are directly or indirectly (e.g., through intermediate suppliers) physically incorporated into automotive vehicles and/or production processes, is eligible for membership and noted that EPA and NIST/MEP are partners in SP. He added that SP is entering its second year and currently has 20 member companies and that it is SP’s goal to double its membership in 2004.

Mr. Resslar then provided an overview of the proposal, intended use and scope of the SP Life Cycle Management (LCM) methodology and noted that it would be a voluntary project and not a code of conduct for members. SP would like to develop a consensus/gain agreement on OEM LCM assumptions regarding a starting point where supply chains could work through the assessment and LCM impacts of an individual vehicle.

Mr. John Sullivan, Ford Motor Company, provided an overview of the USCAR/VRP life cycle database (www.naral.gov/lci). The database, an inventory of life cycle inventory information for all manufacturers, is a standard way to compare products being manufactured and is made available to participants, the public and NGOs. It was developed based on an life cycle assessment (LCA) of a “D” class “franken-sedan” project with participation from GM, DaimlerChrysler, Ford, the American Aluminum Association, the American Plastics Council and the American Steel and Iron Association. Information is peer reviewed and independently reviewed prior to being entered into the database.

SP’s DfE Co-chair, Mr. Brad Strohm, Delphi Corporation, lead a discussion on the SP LCM Methodology of LCM screening process and the following comments were raised:

• Methodology may lead to a “deeper dive” of screening by OEMs/specific supplier. • SP and its members want it to be a common template/assumptions/model – but not to compare specific products/vehicles. • There is a need to define boundary conditions. • The purpose is to assist in evaluation end-of-life uses for product and how products may be reused—want to avoid re-engineering products at end-of-life, but rather want to develop products at beginning with the intent for re-use at end-of-life. • The purpose is to assist in decision-making and optimizing environmental, (social and economic?) performance of the product and/or manufacturers. • Suppliers need to know what OEM(s) want at end-of-life stage during suppliers’ design, development and engineering phases. • The automotive industry is very European-regulation dominated. • There is a need to create a methodology primarily for supply chain, but one that is a common communications methodology and deliverable for customers, supplier engineers and business planners. • The industry needs a systematic approach to recyclability—metrics are needed to demonstrate to government, NGOs and the public that companies are being environmentally responsible. • There is a need to change development/design perspective to life cycle thinking and create a streamlined processing so all are working around the same model that customers can work with as well. • It is important to remember that this methodology will be used by engineers and not environmental staff SP DfE Work Group Meeting DRAFT Minutes January 21, 2004 Page 3 of 4

• It is important to make sure that there are no unforeseen burdens on design, development or implementation stages created. • The methodology should: provide new product/material development alternatives; compare existing product performance; address customer environmental inquiries consistently; and develop a common language for communicating with customers; include recommended environmental end points/input categories; and must be cost efficient and transparent. • There is a need to avoid shifting environmental burdens and costs between phases: manufacturing, raw materials, initial use and end-of-life (see attached PowerPoint file with diagram). . Manufacturing: emissions, material use in process; material waste; and energy -- facility-based; USCAR/VRP LCI database . Raw materials: resource consumption; emissions; material waste, energy use; and byproducts . In-use: maintenance, mass, miles per gallon (mpg), tail pipe – can construct model assumptions/definitions/rules which would apply either globally or regionally - Data already publicly available; Power Train dependent; usually car- specific information; we could simply information by size of car (small, medium, large and hybrid); VRP-generated draft model guide assumptions. . End-of-life: disassemble; reuse; recycle; re-manufacture; energy recovery; landfill.

The SP membership agreed to move forward in the development of an SP LCM Methodology. VRP/USCAR volunteered to collaborate with SP in the development. A second meeting will be held to discuss next steps on March 1, which would be open to both SP members and the guests in attendance at the January 21 meeting. Mr. Resslar noted that the next SP members only DfE Work Group conference call is scheduled for February 5 at 2:00pm. He added that the DfE Work Group would meet on April 28 in conjunction with the SP 2nd Quarter Membership Meeting and noted that the meeting on April 28 would be for members only.

Mr. Strohm then introduced the guest consultants and academics to provide a brief presentation. The following individuals made presentations: Lise Laurin, EarthShift; William Franklin and Bev Sauer, Franklin Associates; Marc Binder, PE Europe GmbH; and Maria Leet Socolof, Univ. of Tennessee.

Action Items / Next Steps: • Ms. Candace Wheeler, GM, and Ms. Claudia Duranceau, Ford Motor Company, volunteered to coordinate the effort with USCAR/VRP. • USCAR/VRP volunteered to host the next meeting on March 1, 2004 at 9:00am-3:00pm EST and a teleconference number would be set up for attendees unable to travel and wishing to participate by phone • Ms. Wheeler will develop a draft proposal, including model assumptions/definitions/rules to be applied either globally or regionally for end-of-life phase. • The next members only SP DfE Work Group conference call will be held on February 5, 2004 at 2:00pm • Meeting minutes and presentations will be distributed to attendees and all SP members. • The DfE Work Group will meet again on April 28, 2004 in conjunction with the 2nd Quarter Membership Meeting. It was noted that this meeting would be for SP members only.

Mr. Resslar and Mr. Strohm thanked the participants for attending the meeting. SP DfE Work Group Meeting DRAFT Minutes January 21, 2004 Page 4 of 4

The meeting adjourned at 2:30pm EST.

Respectfully Submitted,

Amy Goldman SP Director