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ENVIRONMENTAL REPORT 2020 Mission/Vision

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ENVIRONMENTAL REPORT 2020 Mission/Vision DUNLOP INTERNATIONAL (PHILIPPINES), INC. ENVIRONMENTAL REPORT 2020 Mission/Vision 2020 ENVIRONMENTAL REPORT Values 2020 ENVIRONMENTAL REPORT 2 Table of Contents TOPIC PAGE I. Company Profile ……………………………………… 4 II. Environmental Policy ……………………………………… 5 III. Programs and Activities ……………………………………… 6 IV. Environmental Manual ……………………………………… 7 V. Zero Landfill ……………………………………… 8 VI. Reduction of Carbon Dioxide footprint ……………………………………… 13 VII. Eliminate/reduce the use of VOC ……………………………………… 16 VIII. Carbon Capture ……………………………………… 17 IX. Clean Up Drives ………………………………………. 19 2020 ENVIRONMENTAL REPORT I. Company Profile Date of Incorporation 09 May 1977 (Dunlop Sport Company) Factory History 1996 acquisition of BTR (British Tyre & Rubber) 2017 became affiliate of SRI Change of Company Name 25 September 2017 (Securities and Exchange Commission) Registered Address 10th Avenue, Freeport Area of Bataan, Mariveles, Bataan Class Tennis and Squash Balls Manufacture (for export) Brands Dunlop Factory Area Information Land Area 24, 700 m2 Floor Area 15, 000 m2 Production Area 10, 500 m2 Employees 524 as of the end of 2019 Working Days 282 days (2 shifts) 2020 ENVIRONMENTAL REPORT 44 II. Environmental Policy Dunlop International (Philippines), Inc., in the manufacture of tennis and squash balls, is determined to preserve and protect the environment to achieve happiness for everyone. We commit to the continual improvement of our processes with the aim of reducing the impact to the environment. We commit to the prevention of pollution of our surroundings. We commit to comply with all legal and other requirements related to our environmental aspects. We commit to set up plans, which are consistent with this policy, to achieve objectives and targets related to improving our impact on the environment. Yoshinobu Nakamura President Dunlop International (Philippines), Inc. 2020 ENVIRONMENTAL REPORT 55 III. Programs and Activities Environmental Management System Zero Landfill Reduction of CO2 Footprint Elimination of VOC Carbon Capture Clean-Up Drives 2020 ENVIRONMENTAL REPORT 66 IV. Environmental Manual ENVIRONMENTAL MANUAL • We established an Environmental Manual on July 30, 2018. This is to create and organize an effective tool in managing the environmental aspects and impacts resulting from the company’s activities. • The Environmental Manual is based on Environment Management System ISO 14001:2015. 2020 ENVIRONMENTAL REPORT 77 V. Zero Landfill ZERO LANDFILL • A landfill will eventually contaminate the soil and ground water and produce gas emissions. That is why all employees must cooperate to eliminate wastes for disposal to landfills by 2022. Disposal to Landfill 700 624 600 500 400 Tons 312 300 200 134 100 67 34 17 0 Actual 2018 Plan 2019 Actual 2019 Plan 2020 Plan 2021 Plan 2022 The plan for 2019 is to decrease disposal to landfill by 50% from previous year. The full implementation of Solid Waste Management provided a significant result of 75% difference from 2018 to 2019. The plan is to continue decreasing the disposal by at least 50% on each succeeding year. 2020 ENVIRONMENTAL REPORT 88 V. Zero Landfill Zero landfill can be achieved by decreasing our process wastes in cloth, starting with ball downgrades. Ball Downgrades 3.5 3 3 2.5 2 1.80 1.75 Percent 1.5 1 1 0.75 0.5 0.5 0 Actual 2018 Plan 2019 Actual 2019 Plan 2020 Plan 2021 Plan 2022 The actual ball downgrade in 2019 registered at 1.8%. Missing the 2019 plan by .05%, the company will continue its aspiration to achieve a significant decrease in ball downgrades and hit the plan annually. 2020 ENVIRONMENTAL REPORT 99 V. Zero Landfill Zero landfill also means we have to continually reduce our compound wastes and rejects. Compound Rejects Reduction 120 112 100 80 67 60 56 Tons 48 40 28 27 24 20 18 14 14 12 9 7 7 6 3 3 2 0 Actual 2018 Plan 2019 Actual 2019 Plan 2020 Plan 2021 Plan 2022 Core Half Shell Squash With the exception of core, both half shell and squash rejects exceeded the 50% target. 2020 ENVIRONMENTAL REPORT 1010 V. Zero Landfill In order to help achieve the Zero Landfill plan, DIPI obtained an agreement with a cement factory to use our wastes as fuel for their production of cement. In 2019, we have the following quantity of wastes sent to the cement factory: Material 2019 Quantity Rubber flashes from forming 221 tons Rubber dusts 75 tons Cloth trimmings 156 tons Reject cores/half shells 63 tons 2020 ENVIRONMENTAL REPORT 1111 V. Zero Landfill Another strategy to achieve Zero Landfill is to maximize the recycling and reuse of wastes that still have some value. These are sold to the scrapper. In 2018 & 2019, we sold the following wastes to government accredited scrappers and hazardous waste treaters: Waste 2018 Quantity 2019 Quantity Plastic 16 tons 12.5 tons Rubber 1.5 tons 45 tons Paper 12 tons 11 tons Carton 13 tons 21 tons Metal 38 tons 32 tons Wood 1.5 tons 7 tons Used oil 20k liters 8k liters 2020 ENVIRONMENTAL REPORT 1212 VI. Reduction of CO2 Footprint Reduction of CO2 footprint is the main star of all environmental activities since this involves the survival of the planet. DIPI Projects 1) Automatic servo boiler control system.- Installation last December 2018 and used 2019 with a savings of 64,900 liters of fuel. 2) LED lighting - Completed installation in the Factory on December 2019. 3) Leak management of compressed air, steam, hydraulic systems and water supply – on going establishment of data. 2020 ENVIRONMENTAL REPORT 1313 VI. Reduction of CO2 Footprint Activities that DIPI plans to do in the next four (4) years to contribute to CO2 footprint reduction: 1. Energy conservation in the offices, i.e., setting the air-conditioning at 24 degrees Celsius or higher.- implemented in 2019 in all units with the involvement of employees. 2. Insulation of molds.- completion done by Engineering: Core Molding 100%, Final Curing 73%, Forming 20%, SQ Final Curing 77% & SQ Forming 20% 3. Descaling of heat exchangers, molds and mixers.- to be conducted by Engineering Department 4. Expand the coverage of variable frequency drives for motors.- a joint project of Engineering and Facilities. 5. Use of electric forklifts. - purchased Sumitomo Forklift 2019 for FG use. 6. Installation of a solar roof power plant enough to run the factory in the daytime.- to conduct bench marking on identified locators or companies with existing solar power operation. 7. Eliminate use of chilled water in the process.- need more study with PT and Engineering particularly data gathering. 8. Use R.O. system to prevent scales buildup in molds.- completed Installation 2019 and on-lined January of 2020 under monitoring. 2020 ENVIRONMENTAL REPORT 1414 VI. Reduction of CO2 Footprint CO2 Emission Reduction 3000 per 100kdoz 2500 2485 2410 2362 2265 2339 2000 1500 Tons 1000 500 0 Actual 2018 Actual 2019 Plan 2020 Plan 2021 Plan 2022 Our actual data in 2018 and 2019 is the combined total of our CO2 Emission from fuel and electricity. With actual data in 2019 as baseline/reference, our CO2 Emission Reduction target (per 100kdoz) in the next 3 years are the following: 3% in 2020, 2% in 2021 and 1% in 2022. 2020 ENVIRONMENTAL REPORT 1515 VII. Eliminate Use of Volatile Organic Compound Reduce use of VOC by 54% by using Latex. In 2018, DIPI used more than 760,000 liters of VOC in the manufacture of 3.5 million dozen tennis balls. In 2019, development has started to use Latex or water-based adhesive for our core and cloth backing. The plan was to start the mass production on October but due to some issues on ball quality, the plan was postponed to make some adjustments so it was moved to 2020. If completed within the year, DIPI will eliminate 65,000 liters of VOC from August to December 2020 production and around 410,000 liter per year for 3.5 million dozen tennis balls on succeeding years. 2020 ENVIRONMENTAL REPORT 1616 VIII. Carbon Capture Carbon capture can be achieved by planting trees and plants. Last July 5, 2019, DIPI was delegated to spearhead the annual tree planting activity of Freeport Area of Bataan Investors and Locators' Association or FABILA. The activity was held in Barangay Balong Anito, Mariveles, Bataan. With a follow-up activity last September 16, 2019, almost 1,000 trees were planted by the group. 2020 ENVIRONMENTAL REPORT 17 VIII. Carbon Capture DIPI also continue to plant trees and plants inside DIPI compound. 2020 ENVIRONMENTAL REPORT 18 IX. Clean-Up Activity Aiming to promote clean and safe environment, DIPI successfully conducted 8 clean-up drives in 2019 both in road and coastal areas. 10th Avenue FAB, Mariveles, Bataan 10th Avenue FAB, Mariveles, Bataan February 28, 2019 Part 1 April 12, 2019 Part 2 5th St., FAB, Mariveles, Bataan Luzon Avenue FAB, Mariveles, Bataan May 17, 2019 May 17, 2019 2020 ENVIRONMENTAL REPORT 19 IX. Clean-Up Activity DIPI will continue to do clean-up projects, and support endeavors that will protect and save the environment such as participating in the yearly celebration of World Clean-up Day. Barangay Wawa - Pag-asa, Orion, Bataan Paniquian River, FAB, Mariveles, Bataan June 23, 2019 September 13, 2019 Mattel Beach, FAB, Mariveles, Bataan Mariveles Zigzag Road, FAB, Mariveles, Bataan September 29, 2019 (World Clean-up Day Celebration) September 29, 2019 2020 ENVIRONMENTAL REPORT 20.
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