Environmental Statement Report Environmental Protection and Safety Danbury and Winsted 2016 CONTENTS | 2

CONTENTS

General Part

Foreword 3 Message from the shareholders 3 Introduction by the Chief Executive Officer 5

Company Portrait 7 The Schaeffler Group 7 Schaeffler worldwide 11

Environmental Protection Worldwide 13 Standards on Environmental Protection and Occupational Safety 14 Schaeffler Environmental, Health and Safety Policy 15

Environmental Communication 16 Award 17 Environmentally Friendly Products 18 Location Part

Location 19 Introducing the Location in 2016 Danbury and Winsted 19 Changes at the Location 24

Environmental Impacts 25 Direct Environmental Impacts 25 Indirect Environmental Impacts 33

Health and Safety 34 Risk Management 34 Health and Safety 35 Social aspects 37

Key Indicators according EMAS III 38

Environmental Indicators 43 Input/ Output 43

Goals and Programs 47 Improvements not included in annual target planning 48 New goals 2016 49

Validation and responsibilities 50 3 | FOREWORD

Message from the shareholders

Maria-Elisabeth Schaeffler-Thumann | Georg F. W. Schaeffler FOREWORD | 4

Schaeffler, which is based in Herzogenaurach (Germany), is a leading technology company and supplier to the automotive sector and around 60 further industrial sectors. The listed family-owned company has around 86,600 employees worldwide who, with their expertise, reliability, and commitment, lay the foundations for the company’s success.

The highest quality, outstanding technology, and strong innovative ability represent the basis for the Schaeffler Group’s lasting success. Sustainable management is a success factor for both the company and for our established corporate culture, which we as family shareholders represent.

For this reason, the consideration of ecological and social criteria has been an integral part of our corporate guidelines for many years.

In particular, the Schaeffler Group made a commitment to comply with a standardized, worldwide environmental management system that fulfills the highest requirements more than 20 years ago. This system has been continuously developed and now includes the topics of environmental protection, health protection, and occupational safety, which the company implements in a consistent manner.

All manufacturing locations have been validated according to the stringent EMAS regulations and certified according to ISO 14001 and OHSAS 18001 with regard to occupational safety. In the field of environmental protection, Schaeffler is playing a leading role on an international level and received an award from the European EMAS Commission in 2015.

We are delighted that the 2016 environmental statement documents the successful connection between cost- effectiveness, environmental protection, and social factors inside and outside the company.

Yours,

Maria-Elisabeth Schaeffler-Thumann Georg F. W. Schaeffler 5 | FOREWORD

Introduction by the Chief Executive Officer

Klaus Rosenfeld FOREWORD | 6

The world is moving. And it is clearly getting faster by the day. Ongoing climate change, increasing urbanization, globalization, and digitalization will all permanently influence and change the ways in which we live and work.

These are changes that we want to play an active part in shaping. Our “Mobility for tomorrow” strategy was put in place in order to allow us to achieve this goal. Based on the four megatrends listed above, Schaeffler is focusing on four areas across divisions and regional borders: “Eco-Friendly Drives”, “Urban Mobility”, “Interurban Mobility”, and “Energy Chain”. As a globally active automotive and industrial supplier, we provide our customers with products, system solutions, and services that help to make our world cleaner, safer and smarter.

Within the Schaeffler Group too, however, sustainable management along the entire value-added chain and social responsibility are integral parts of the corporate culture that we practice. We place great emphasis on combining economic success with acting responsibly towards our customers, the environment, and our employees. We provide a safe working environment for our employees in addition to active health protection measures and services. This has its key points firmly anchored in our corporate code of conduct.

Group-wide governance guarantees that our guidelines and high standards in the fields of environmental protection, health protection, and occupational safety apply at every Schaeffler location around the world. Every one of the Schaeffler Group’s manufacturing locations works with environmental management systems according to EMAS or ISO 14001. We are always working to further develop these, and we prioritize Europe’s stringent EMAS standard as the basis wherever possible. We do not differentiate between our plants in Germany and those in other countries in Europe, the USA, or Asia; after all, we believe there is only one environment – one that is global and worth protecting. When it comes to fulfilling high environmental and social standards, we also actively involve our suppliers.

As a global family-owned company, we are joined by four central values – sustainable, innovative, excellent, and passionate – and these are the expression of our responsibility towards the environment and our customers and employees, as well as towards future generations. Our aim is to keep continuously developing Schaeffler by not losing sight of our vision, which makes a future worth living possible.

Klaus Rosenfeld Chief Executive Officer, Schaeffler AG 7 | COMPANY PORTRAIT

The Schaeffler Group

The Schaeffler Group is a global automotive and industri- companies consists of approximately 170 locations al supplier. Top quality, outstanding in over 50 countries. The group’s 75 production facili- technology, and exceptionally innovative spirit form the ties are the cornerstone of its operations. As a global basis for the continued success of the company. The development partner and supplier, Schaeffler maintains Schaeffler Group identifies key trends early on, invests stable long-term relationships with its customers and in researching and developing new forward-looking pro- suppliers. In addition to Schaeffler AG, a publicly listed ducts, and sets new standards in technology. Extensive stock corporation incorporated under German law with systems know-how enables the Schaeffler Group to offer its registered office in Herzogenaurach that acts as the comprehensive solutions that are tailored to customer group’s lead company, the Schaeffler Group includes and market requirements. By delivering high-precision 152 domestic and foreign subsidiaries as at December components and systems in engine, transmission, and 31, 2016. chassis applications, as well as rolling and plain bearing solutions for a large number of industrial applications, Strategy “Mobility for tomorrow” the Schaeffler Group is shaping “Mobility for tomorrow” to a significant degree. The company already offers inno- “As a leader in technology, we combine a passion for vative products for hybrid and electric vehicles today. innovation with the highest standards of quality to shape the future of mobility – for a world that will be cleaner, With its approximately 86,600 employees, the Scha- safer, and smarter.” This is the vision of the Schaeffler effler Group is one of the leading global technology Group. To live up to this claim, Schaeffler adopted its companies, and its network of manufacturing locations, strategy “Mobility for tomorrow” in 2016. research and development facilities, and distribution

Vision Mission “As a leader in technology, we combine a passion for innovation with the highest standards of quality “Guided by the values of a global family business, to shape the future of mobility – for a world that we work closely together with our customers as will be cleaner, safer, and smarter.” true partners to deliver a compelling value proposition through our best-in-class expertise in manufacturing technology and systems know-how. In doing so, we contribute to the success of our customers, the advancement of our employees, and the prosperity of our society.” COMPANY PORTRAIT | 8

Under this strategy, the Schaeffler Group concentrates on 4 focus areas: Eco-friendly drives, urban mobility, inter­ urban mobility, and energy chain. These 4 focus areas are based on four megatrends that will influence the business of the Schaeffler Group in the future: Climate change, urbanization, globalization, and digitalization.

Eco-friendly drives Urban mobility

Interurban mobility Energy chain

On this basis, the Schaeffler Group’s Board of Managing Directors developed 8 strategic pillars in cooper­ation with the Supervisory Board and senior management worldwide. These pillars define the company’s scope for strategic action for the next few years and form the basis for the continuous further development of the Schaeffler Group. The “Agenda 4 plus One” excellence program ensures that the strategy is executed; it comprises 16 strategic initiatives that have significance worldwide and have been selected from a variety of initiatives.

We want to be We are an We are a global We produce the preferred Auto­motive company with a components technology and Industrial local presence and systems. partner for our supplier. throughout the customers. world.

We view E- We strive for the We want to We live by the Mobility, Industry highest possible be an attractive values of a 4.0 and Digita- quality, efficiency employer. global family lization as key and delivery business. opportunities for performance. the future. 9 | COMPANY PORTRAIT

Divisions Its comprehensive technical expertise for the entire drive train is what sets apart Schaeffler Automotive, one of Automotive the leading automotive suppliers worldwide. As future The Schaeffler Group has divided its business activities consumption and emissions targets can only be fully met into the two divisions Automotive and Industrial. As a by electrifying the drive train, the Schaeffler Group offers partner to the automotive sector, the Schaeffler Group solutions for the entire range of electrification types – leads the field when it comes to developing and manu- from hybrid through to fully electric drive systems. facturing groundbreaking components and systems for engines, transmi­ ssions, and chassis, for both vehicles A comprehensive Aftermarket portfolio rounds out the with drive trains based on the internal combustion business of the Automotive division. The product range engine and hybrid and electric vehicles. The Automotive covers applications in clutch and release systems, division business is organized into the business divisi- engine and transmission applications, and chassis ons (BD) Engine Systems, Transmission Systems, Chassis applications. In addition, Schaeffler Automotive After- Systems, and Automotive Aftermarket. market offers a comprehensive variety of services such as practice-oriented training courses, advice provided by The Automotive division’s main products include clutch the Schaeffler repair hotline or the group’s online garage systems, transmission components, torsion dampers, portal, as well as the development of specialized tools. valve train systems, camshaft phasing units, electric dri- ves, and bearing solutions in transmissions and chassis. The Schaeffler Group’s precision products and systems are key to helping make engines use less fuel and com- ply with increasingly strict emission requirements. At the same time, they also extend engine and transmission life and increase driving comfort and dynamics.

Efficient Future Mobility concept vehicles show technological solutions for regional requirements. The Efficient Future Mobility China concept vehicle is shown here. COMPANY PORTRAIT | 10

The bearings and related products manufactured by the Industrial division are used, for example, in wind turbines.

Industrial With its rolling bearing, linear technology, and direct The Industrial division is primarily managed based on drive solutions, the Schaeffler Group offers comprehen- regions due to its wide customer and business structure. sive technological and application engineering expertise On this basis, the Europe, Americas, Greater China, and for complete systems from one source that are precisely Asia/Pacific regions operate matched to one another. The focus is increasingly on as profit centers responsible for the Industrial smart products and on connecting components. One business in their respective markets. Within the example is the “Machine Tool 4.0”, whose sensor-equip- regions, the Industrial business is grouped into eight ped components measure and report vibrations, forces sectors: (1) wind, (2) raw materials, (3) and temperatures at all relevant bearing positions. aerospace, (4) rail, (5) offroad, (6) two wheelers, (7) power transmission, and (8) industrial automation. Sales The majority of rolling bearings is supplied by the “Bea- to distributors (Industrial Distribution) round out the ring & Components Technologies” (BCT) unit as an inter- Industrial division’s regional business. nal supplier. The bearings and related products are used in applications in drive technology, production machine- The Industrial division’s product spectrum includes rol- ry, and wind turbines, as well as in heavy industries. In ling and plain bearings, linear technology, maintenance the aerospace sector, the Schaeffler Group is a leading products, monitoring systems, and direct drive techno- manufacturer of high-precision bearings for jet and heli- logy. The Industrial division offers a broad portfolio of copter engines as well as for space travel applications. bearing solutions, ranging from high-speed and high- precision bearings with small diameters to large-size bearings over three meters in diameter. Components are increasingly being integrated in system solutions, some of which are designed as mechatronic systems with data- generating sensors. 11 | COMPANY PORTRAIT

1 COMPANY PORTRAIT | 12

1 13 | GLOBAL ENVIRONMENTAL PROTECTION

Environmental Protection Worldwide

Manufacturing location at Schaeffler Bühl

At all manufacturing locations Numerous awards Since the mid-1990s, Schaeffler has been developing an Schaeffler’s commitment here has already garnered environmental management system of which it has every special awards on numerous occasions, including the reason to be proud today: Virtually all of the company’s Bavarian Environmental Medal, the “Ökoglobe”, and the manufacturing locations are certified according to ISO Ford Motor Company’s “Recognition of Achievement, 14001 and the even more stringent EMAS regulations. Environmental Leadership”, which it has also won three New locations generally follow suit within three years. times in a row. Schaeffler won the EMAS Award for Germany and Europe in 2005 and, in 2015, also received Leading role in the application of EMAS an honorary award during the European EMAS Awards The total number of EMAS-registered manu­facturing ceremony. locations, particularly outside the European Union, means that Schaeffler is playing a significant leading Sharing experiences role. Schaeffler was the first organization to apply EMAS Schaeffler shares its experience and expertise in this field outside the EU, thus laying the foundation for the with interested groups in numerous different ways – for registration of locations in third countries that sub­ example, it is a member of the Environmental Verification sequently became possible with EMAS III (also referred Committee, leads the EMAS Review working group, to as “EMAS Global”). creates various EMAS reference documents, carries out research studies, receives visits from universities and expert groups, holds regional meetings with EMAS clubs, and takes part in numerous conferences and workshops relating to EMAS and environmental management. GLOBAL ENVIRONMENTAL PROTECTION | 14

Standards on Environmental Protection and Occupational Safety

ISO 14001 OHSAS 18001 ISO 14001 is an international, private standard for OHSAS 18001 is based on a British standard for environmental management systems. It was published occupational health and safety management systems. in 1996. Similar to the quality standard ISO 9001, also It exists since 1999 and has much in common with ISO ISO 14001 is built on the Plan-Do-Check-Act cycle for 14001 or ISO 9001. One main element is the preparation the continuous improvement of systems. That cycle was of risk assessments. Since 2016 a draft of an ISO 45001 developed by William Deming in the 1930s years. Like is available, that will replace OHSAS 18001 within the all ISO standards the current ISO 14001 chapters follow next years. the so called high level structure. Important contents are amongst others the preparation of an environmental ISO 50001 policy, the assessment of environmental impacts, the ISO 50001 is a relatively young standard for energy definition of responsibilities and the preparation of an management systems. The structure and contents is environmental program, document control and con­ similar to those of ISO 9001, ISO 14001 and ISO 45001. ducting audits. Many bigger companies, especially from Especially because of tax incentives the number of ISO the automotive sector, require that their suppliers are 50001 certifications has increased significantly in many certified according to this standard by an accredited countries during the last years. certifier. Because of this it is wide spread.

EMAS EMAS stands for environmental management and audit scheme. The basis of the system is a European regulation, which was published in 1993. However the participation is voluntary. EMAS requires a system according to ISO 14001 and additionally compliance with environmental law and the preparation of a com­ prehensive environmental statement. Both has to be checked and confirmed by a licensed or accredited environment­ al verifier. EMAS is the superior and more ambitious of both systems. It is focusing on performance, transparency and credibility and is mainly implemented within the European Union. 15 | GLOBAL ENVIRONMENTAL PROTECTION

Schaeffler Environmental, Health and Safety Policy

Environmental protection, occupational health, and Minimum Environmental Impact and occupational safety (EHS) are part of our management Environmentally-Friendly Products principles. We help ensure the continuity and success of Regardless of the activities we are carrying out, we our company by creating and sustaining a work environ- endeavor to minimize environmental impact by taking ment that is safe, healthy, and conducive to performance suitable measures in advance. We consume raw materi- and by actively protecting the environment. The following als and energy sparingly and make every effort to minimi- principles apply to all areas of our company. We are ze waste, waste water, noise, and other emissions. We committed to taking responsibility for our employees, manufacture environmentally-friendly products taking society, and future generations. into account the entire product lifecycle.

Efficient Occupational Health and Safety and Responsible Employees Environmental Protection Management We hold regular information and training sessions to We actively use a global occupational health and safety ensure that our employees and business partners have and environmental management system that is under­ the expertise and knowledge to carry out their work going continuous improvement and provide our emplo- safely in a health-promoting manner and with the yees with a fulfilling and fruitful life until retirement age. minimum of environmental impact in all areas of the We elaborate forward-looking holistic concepts, struc- company. tures, and processes that we implement in collaboration with our contractual partners. We carry out regular checks Preventive Measures across all areas to determine the extent to which these We preserve and promote the physical and psychological measures have been implemented and to monitor the health of our employees. We take comprehensive pre- success of our management system. ventive measures to protect our employees and prevent damage to the environment. Comprehensive and effec- Safe, Employee-Friendly Workplaces tive emergency measures are in place at all locations We are convinced that all occupational accidents and to ensure that our employees and visitors are treated illnesses can be avoided. Motivated employees and properly in the event of injury. managers help us achieve our goal of a zero-accident workplace. When it comes to protection, our employees Open Communication and contractors have equal priority. When designing We conduct an intensive and trusted dialog with work centers and procedures, we take into account the interested parties. We provide information about our latest trends and developments and place special work safety and environmental protection measures emphasis on ergonomic design. as well as the impact each of our locations has on the environment. Reliable Actions We are committed to observing all legislation and Chief Executive Officer, Schaeffler AG specifications regarding work safety and environmental Klaus Rosenfeld protection. We act in a responsible manner in accor­ dance with our own regulations, which, in many cases, go beyond existing legal requirements. We configure, purchase, operate, and maintain machines and facilities in such a way as to minimize potential hazards, risks, and operational disturbances. Our technology is based on the latest state of the art. ENVIRONMENTAL COMMUNICATION | 16

Environmental Communication

The company’s intranet provides comprehensive infor- The relevant departments are informed in a timely mation: contact persons, databases, a waste guide and manner about the use of such materials, and the much more. This information is made available to all required action is taken. This means that our customers employees worldwide. can be sure that products supplied by Schaeffler contain only approved materials. Company newsletters and notices are also used to inform employees. Safety rules and regulations also apply to contractors working in Schaeffler plants. A document detailing all Regular Conferences safety-related requirements has been prepared for con- Environmental protection conferences held every year tractors working on the plant premises. Contractors may allow participants to exchange information and coordi- not enter the premises to perform their work unless they nate goals and actions. These conferences last several have agreed in writing to comply with these require- days and are attended by the environmental protection ments. coordinators from all locations. Regular Internal and External Audits Since environmental protection conferences were first The level and progress of the company’s environmental introduced, cooperation and coordination (e. g. for protection are also monitored by regular internal audits planning environmentally relevant facilities) between all at all manufacturing sites as well as external audits by locations have improved tremendously. an independent environmental verifier. These audits are planned and coordinated at company headquarters and Global Regulations: carried out by the Schaeffler auditor pool. The Schaeffler Plant Standards and Procedures Group’s internal environmental auditors participate in All actions relevant for the environment, such as the multi-day training courses for auditors on a regular basis. approval of indirect materials or the specification of substances prohibited for use in products and All locations receive an audit report that includes packaging, are regulated globally by special plant stan- details of the current status and recommendations for dards. In this way, Schaeffler ensures that hazardous improvement. materials are used only if there are no other alternatives. Due dates and responsibilities are defined for all relevant measures. 17 | AWARD

European EMAS Award 2015

Schaeffler receives an honorary award for environmental protection

In May 2015, Schaeffler received an honorary award Prior to this, Schaeffler had won the national preliminary from the European Commission for its leading role in the selection in the “major companies” category. application of EMAS during the European EMAS Awards ceremony. Schaeffler had registered its first location in The European EMAS Award was first announced in 2005 China in accordance with EMAS, and has more manufac- and even at the start was presented to Schaeffler at both turing locations on the register than any other company, the national and European level. particular ly outside of the EU. EMAS, which stands for European Eco-Management and The award was presented by Kestutis Saduaskas, Audit Scheme, is a management system designed to help director of the European Commission’s Green Economy organizations improve their environmental performance section, during the ceremony in Barcelona, and received and communicate their results. EMAS is chiefly charac- on behalf of Schaeffler by LennartSchleicher, Director of terized by its performance, credibility, and transparen- the Environmental Protection and Safety Management cy, and is considered to be the premier environmental System. management system. ENVIRONMENTALLY FRIENDLY PRODUCTS | 18

Environmentally Friendly Products

Environmental pollution and the depletion of resources Comprehensive Data Management can largely be attributed to the increased consumption The company’s own environmental data coordinator of products. We must change our way of thinking and in- handles inputs and outputs of material and energy flows sist on environmentally friendly products that use fewer for all processes and products at the respective plant. resources and minimize the strain on the environment. Material flow analyses help further integrate environ- Our “Integrated Product Policy (IPP)” addresses this idea mental management into the company’s corporate units, and aims to promote environmentally friendly products. such as Logistics, Manufacturing and Financial Control- ling. Existing processes and technologies are questioned Schaeffler – Always One Step Ahead thoroughly, and additional opportunities for improving This isn’t a new idea for Schaeffler; we have embraced processes are recognized and put into practice. this idea for many years. We accepted the challenge to design environmentally friendly products a long time Information Networks ago. What is new is the methods and tools used to Environmental impacts occur even when resources achieve this goal. How can we utilize previously untap- are extracted. To make products even more environ- ped potential to improve the ecobalance of a product mentally friendly, Schaeffler stays in close contact with over its entire lifecycle? its suppliers and customers. A shared network is used to record and analyze environmental information along New Inroads the entire product chain. The insights gained allow new One way to make environmentally friendly products is to solutions to be recognized for environmentally friendly increase the efficiency of the material and energy used, products and sustainable development. thus reducing environmental impacts. We continuously evaluate and design all material and energy flows, from Recycling the time they enter the company to the time they leave We try to ensure that manufactured components are as products or residual materials. recycled at the end of a vehicle’s service life. This is why LuK and INA are founding members of the Partslife recycling system. 19 | LOCATION

Introducing the Location in 2016 Danbury und Winsted

The Barden Corporation The Barden Corporation 200 Park Avenue 159 Colebrook River Road Danbury, CT 06810 USA Winsted, CT 06098

Total manpower: 365 Total manpower: 50

Facilities Facilities Plant: Barden Danbury Plant: Barden Winsted Date of aerial photo: 2004 Date of aerial photo: 2004 Site area: 74,867 m² Site area: 72,641 m2 Building area: 20,500 m² Building area: 4,250 m2 LOCATION | 20

About Barden/FAG Barden was founded in 1942 by Theodore Barth and Carl Norden (hence the name „Bar-den“) to make precision ball bearings for the Norden bombsight. The bearings they manufactured were of exceptional quality, featuring tolerances beyond the scope of the technology then available. In the mid 1950’s Barden had grown consi- derably and relocated to its current location in Danbury, Connecticut.

In 1968, Winsted Precision Ball was acquired by The Barden Corporation a leading designer and manufacturer of super precision ball bearings

In 1991, The Barden Corporation became affiliated with FAG, and formed the nucleus of its Aircraft and Super Precision (ACSP) Division. Included are facilities in Schweinfurt, Germany and Stratford, Canada, and its subsidiary Barden U.K., a manufacturer of precision ball bearings, based in England.

The Schaeffler Group acquired FAG Bearing Company in 2002. The integration of the INA and FAG sales teams takes place the same year.

The Barden Corporation’s designs include machine tool, aircraft, automotive, special machinery and medical applications. Barden specializes in the design and manufacture of super precision ball bearings for safety- critical and harsh environment applications in a broad range of market sectors, from aerospace bearings to high performance machine tools. The company‘s activities are supported by sister sites, The Barden Corporation (US) based in Danbury, USA, and the Winsted Precision Ball Company in Connecticut, USA.

Original Equipment Manufacturers’ (OEM) customers are served directly by Barden/FAG, Maintenance Repair and Operations (MRO) customers are served by a network of over 1,000 distributor locations. 21 | LOCATION

Plant Location The Company is an advocate of a safe and environmen- The location of the Danbury plant is in an area with limi- tally friendly work place and supports the Employee En- ted housing in a light industrial zone. There are retail and vironmental, Health and Safety Committees. The majority commercial properties adjacent to the site. The Danbury of the committee members are from the hourly workforce plant is located within a quarter mile of a municipal air- and are joined by the EHS staff, the Human Resources port and a major interstate highway. Danbury is located personnel and supervisory personnel. approximately 60 miles north of New York City. Director Human The Winsted plant is located in a rural area with limited Resources housing in a light industrial zone. There are no retail or commercial properties adjacent to the site. The Winsted facility is approximately 60 miles north of Danbury. Occupational EHS/Safety Barden operates an extensive Environmental, Health Heath Nurse Specialist and Safety (EHS) program consisting of Environmental, Health and Safety Coordinators, emergency response teams for spills as well as medical emergencies. Other Physical Therapist/ EHS Coordinator staff members include a Registered Nurse, Physical The- Ergonomic Specialist Winsted rapist and a Doctor.

Another active program is Energy Conservation. A team of individuals work together in an effort to take advan- tage of energy incentives offered by the power company as well as to inspire others to think about saving energy. The Company actively seeks opportunities for energy conservation through employee involvement and the continuous improvement program at Barden. 22 | LOCATION

Products Production Processes includes Traditional Barden products are predominantly radial, Raw Material Receiving and Inspection single row, super precision angular contact (separable Raw materials are received and inspected prior to and non-separable) and deep groove ball bearings. release to production to ensure conformity to standards. Bearings are classified as either instrument or spindle The raw materials are received in tubes, round bars, coils bearings, and are made to exacting Annular Bearing and blanks. Engineers Committee (ABEC) specifications ABEC-7 or ABEC-9 standards which Examples of the raw material are Steel – M-50, 52100, T-15, M-62, Stainless Steel Silicon Barden routinely exceeds. The Barden Corporation also Nitride, Glass manufactures ball screw support bearings, cylindrical roller bearings and double direction angular contact CNC turning thrust ball bearings. The process is performed on automatic multi spindle tur- ning machines. This operation requires the use of water Barden super precision bearings are used wherever based coolant, compressed air and electricity to perform the need to meet critical tolerances, high speeds and the machining. performance under demanding operating conditions are required. Since they exceed ABEC tolerances, Barden Welding bearings offer long life and reliable performance. Process requires the use of electricity to perform operations. The Winsted plant manufactures balls from chrome alloy steel, stainless steel, ceramics, glass and will also manu- Heat Treatment facture balls to specifications. The facility is a qualified Furnaces require the use of a variety of raw materials United States source of M-50 balls for jet aircraft engine including nitrogen, methanol, natural gas, electricity and bearings. quench oil.

The Winsted segment manufactures balls for machine Precision grinding and honing tool spindle bearing and aerospace applications. Processes require the use of electricity, water and oil based coolants, hydraulic oils and compressed air.

Washing Processes During the process parts are washed multiple times in dedicated aqueous washers. Prior to assembly all parts are cleaned again. During the washing process Barden uses various cleaning agents, water, electricity and com- pressed air. 23 | LOCATION

Clean room assembly Certifications During the assembly of the bearings there are functional >> ISO14001 Environmental Management System checks, precise measurements made and visual in­ >> OHSAS18001 Health and Safety Management System spections. Once the assembly of the bearing is complete >> EMAS Validated Statement parts are prepared for shipment. Assembly processes >> ISO50001 Energy Management System require the use of greases and oils for lubrication, >> ISO9001 Quality Management System solvent, compressed air and electricity. >> NADCAP – NDT, Chemical Processing >> AS9100 Quality Management System for Heading Aerospace Industry Manufacturing of the balls starts with the raw material of either a coil or bar stock. This is followed by the flash and grind processes. Processes requires the use of electricity, water and oil based coolants, hydraulic oils and compressed air.

Lapping Process Process requires use of water and oil based coolant and electricity.

Inspection Operations such as Non-destructive testing (NDT), visual and dimensional checks, etching and passivation are conducted to confirm product quality. All operators are highly skilled in the details of the inspection process. Va- rious inspection processes require the use of chemicals, electricity and compressed air. LOCATION | 24

Changes at the Location

Energy Savings of hydraulic oil degradation and therefore a reduction in Danbury and Winsted each have an Energy Coordinator Kwh (kilowatt-hours) consumption. and an Energy Team. The Energy Coordinator leads the energy conservation projects at each site. Extensive do- Protection of storm water: During a Storm Water site in- cumentation of the Energy program are retained at each spection in Danbury it was noted that three catch basins site individually. Energy is considered at the locations had deteriorated to the point of near collapse. All three including: new equipment purchases and any other alte- catch basins have been repaired. rations at the sites that may affect energy consumption. During the last external Energy, Environmental, Health Remove Environmental Aspect: In Danbury an aging and Safety audit both sites received the ISO50001 Ener- underground storage tank of a petroleum product was re- gy Management System Certification. moved eliminating a potential environmental impact. The petroleum was used for heating and has been replaced Both sites continue to replace fluorescent bulbs with with a cleaner fuel, natural gas. light emitting diode (LED) lighting in production and office areas. Not only are LEDs a more efficient lamp but Safety: Both sites engage employee participation in they are also RoHS (Restriction of Hazardous Subs- an Environmental Health and Safety Committee. These tances) compliant. The lighting output gives the same committees meet regularly to discuss health and safety lumens with fewer watts and is currently the preferred trends and identify leading indicators to prevent injury lighting. and illnesses. Committee members conduct monthly surveys which identify potential hazards. In response to In Danbury a new compressor was installed in the the surveys supervisors and managers are responsible boiler room and is controlled by an energy management for corrective actions as needed. system. Portions of the parking lot in Danbury had heaved and Variable Frequency Drive (VFD) hydraulic pumps: The cracked causing a potential danger for a trip and fall. use of VFD hydraulic pumps to replace constant pressure These areas of the lot have been replaced. hydraulic pumps hydraulic pumps are being implemen- ted with machine rebuilds or as part of the TPM Program. The VFDs cycle with the machine’s requirement for the hydraulic system to operate. This results in a reduction of the operating temperatures of equipment, prevention 25 | ENVIRONMENTAL IMPACTS

Environmental Impacts

There are no known complaints from neighbors regarding hazardous waste are trained in accordance with the state noise, traffic or industrial operations during the reporting and federal regulations. Each year all documents are period. This may be due to the location and surrounding reviewed and training for all employees involved in the type of properties adjacent to the facilities. Both sites waste program is conducted. During the training any re- are located in a light industrial zoned location with City gulatory changes are discussed and waste handling pro- Ordinances allowing 70 dB in the area of the plants. cedures are reviewed. Each participant must also pass a competency exam to remain in the program. There are Water periodic inspections by the State of Connecticut which A waste water treatment discharge permit has been include an in depth review of paperwork, waste storage, is­sued to the Danbury plant by the State of Connecticut waste handling and training requirements. During the with required monthly testing and reporting. Industrial period of this report all requirements have been met. waste waters pass through multiple stages of the pre-treatment system prior to discharge to the City Hazardous Materials of Danbury Publicly Owned Treatment Works (POTW). Danbury and Winsted are registered with the United Annually the State inspects the system, documentation States Department of Transportation (DOT) as an offeror and gathers samples to confirm compliance with the of hazardous materials for shipment. Each employee parameters and requirements of the permit. During this who is designated as an offeror of hazardous materials reporting period all relevant limits were met. participates in training.

There are no water treatment facilities at Winsted. Air The Danbury site operates two natural gas fired boilers Both Danbury and Winsted are permitted by the State which are used for heating and are covered under an of Connecticut for the discharge of storm water from air permit and registration with the State of Connecti- an industrial site which requires biannual testing and cut. A General Permit to Limit Potential to Emit (GPLPE) reporting. Storm water samples are tested for hydrocar- has been issued by the State that restricts emissions bons, chemical oxygen demand, pH, and various metals, from the boilers. Natural gas consumption is monitored during the reporting period all limits have been met. monthly to ensure compliance with the permit. There are also annual inspections by the State where all records are reviewed and a general inspection of the Winsted operates small natural gas units for heating property is conducted. Each site has a team who reviews which do not require permits. the plan, documents and inspects the grounds twice per year. Meeting records are kept and all open items are Other Materials: addressed. Both sites have met all requirements for the storm water permit. Recycled The State of Connecticut requires Barden to recycle oil, Hazardous Waste cardboard, plastic, paper, glass and batteries. Contai- Danbury and Winsted are classified by the federal ners are easily accessible throughout the facility to fulfill government as Large Quantity Generators (LQG) of this obligation to recycle. hazardous waste. The sites are required to comply with the following requirements: track waste using a manifest Domestic Waste system and land disposal restriction documents, proper All domestic waste is sent to a local transfer station storage and labeling of waste and periodic reporting where it is segregated and sent to its final destination for to state and federal agencies. All employees handling disposal. ENVIRONMENTAL IMPACTS | 26

Inputs/Outputs of Production Water

Compressed Electricity Air

Production Natural Gas Lubricants

Inputs

Bearing Methanol & Compenents Nitrogen

Packing Coolants Materials Steel & Raw Materials

Energy

Recycle Emission Materials

Scrap Water Outputs Metal

Oil & Hazardous Lubricants Waste

Bearings & balls 27 | ENVIRONMENTAL IMPACTS

Activities/Aspects Nature of Environmental impacts Future The use of disposable goods such The impact on the environment taxes the Continue to assess the quanti- as paper goods in the cafeteria and landfills with unnecessary waste. This ty of disposable goods used at disposable shop towels in production impact is alleviated somewhat by repla- the facilities and replace with have been replaced with china dishes cing the disposables with articles which items which may be re-used or and laundered shop towels. may be re-used. The environment benefits renewed. also with a lesser amount of truck hauling waste to the landfill and therefore redu-

cing CO2. Electricity is used in production are- Excessive amounts of greenhouse gases Control electricity usage by ins- as, offices and other non-production are a negative impact to the environment talling high efficiency equip- areas. The production of electricity with adverse effects. ment, LED lighting and power using fossil fuels directly affect the monitors.

environment by producing CO2 which is a greenhouse gas known to in­ crease global warming. Emissions from heat generating The emissions are an added effect to Continue with periodic mainte- equipment create negative effects on global warming and air pollution. nance on existing equipment the environment. and investigate more efficient and environmentally friendly alternatives.

Waste water from production must be Offsite hauling of wastes creates CO2 Filtration and regular solution disposed of or recycled to reduce the emissions. Processing of industrial waste testing of production wash wa- amount of waste. water onsite uses electricity and com- ters may add to the longevity pressed air which are monitored inputs. of the tanks. Seek new efficient equipment when replacing existing. Bearing lubricants are utilized du- Inventory control is employed and stock Required inventory is carefully ring assembly and maintenance of is replenished as needed thus decreasing monitored and inventory limits equipment. Overstocking of lubri- the manufacturing impact of the lubri- are established. cants increases their production and cants and the transportation impact to the increases the transportation required facility. to deliver unnecessary product. ENVIRONMENTAL IMPACTS | 28

Permits and Requirements Periodic checks and reviews of the permit requirements are conducted; any discrepancies in the requirements are corrected immediately. During the reporting period all relevant limits were met.

The Danbury plant maintains compliance with two permits issued by the State of Connecticut. The site has a waste water discharge permit for industrial waste water and a General Permit for air emissions. The requirements for these can be compared to the parameters of the Schaeffler sites in Germany.

Waste Water Discharge limits:

Danbury Parameter pH Hydrocarbons Pb Cu Cr Co Ni Zn Sulfide AOX COD Unit mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l Limit 6.5-10 100.00 0.50 2.00 2.00 NA 2.00 2.00 NA NA NA

Selected German limits for waste water discharge and emission sources:

Waste Water

Parameter pH Hydrocarbons Pb Cu Cr gas Co Ni Zn Sulfide AOX COD Unit mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l Limit 6.5-10 10-20 0.50 0.50 0.50 1.00 0.50 2.00 1.00 1.00 – Source: limits from actual valid legal permits for waste water treatment facilities operated by Schaeffler in Germany

General Air Permit General Air Permit:

Unit Process Parameter Limit Parameter Parameter lbs/day lbs/day lbs/day Gas boilers heating 47.06 0.28 Diesel generators emergency 219.09 14.41 Gas Generator emergency 313.8 0.08 Gas Heaters heating 2.81 0.02 NOx SOx VOC Used Oil burner heating 1.64 Solvent Cleaning production 113.59 Solvent Cleaning production 131.22 Solvent Cleaning production 143.11

Air Emissions

Para- PM CO NOX SOX VOC meter Source Gas Oil others/ Gas Oil Gas Oil others/ Gas Oil others/ others/ heater heater general heater heater heater heater general heater heater general general Unit mg/m3 mg/m3 mg/m3 mg/m3 mg/m3 mg/m3 mg/m3 mg/m3 mg/m3 mg/m3 mg/m3 mg/m3 Limit 5.0 50 20 50 80 0.10- 0.18- 350 10-350 850 350 50 0.15 0.25 Source: limits from the German „TA-Luft“ 29 | ENVIRONMENTAL IMPACTS

List of Regulatory Obligations General Note: Legal requirements are checked and reviewed twice per year. Any deviations are corrected immediately. During this reporting time period all pertinent limits were met.

It is imperative that Barden maintain requirements listed to be in compliance with the Agencies of the United States. The Company pays strict attention to the requirements to ensure that the limits are maintained at all times.

The regulations pertaining to the operations at the Barden sites have been rated accordingly: 0 = currently not relevant, 1 = little relevance, 2 = medium relevance, 3 = high relevance

Legal and Other Requirements Relevance Environmental Hazardous Waste Management – All wastes generated must be evaluated under the Resource Conser- 3 vation and Recovery Act (RCRA) to determine if it is a hazardous waste. The rules are very extensive and complex. Barden is classified as a large-quantity generator of hazardous waste (1,000 kg/month) and must comply with all requirements. Connecticut (CT) Regulated Waste - In addition to the federal government regulating hazardous waste, 3 Connecticut regulates a category of materials called „Connecticut Regulated Wastes“. Connecticut Solid Waste Recycling - Recycling is required in Connecticut. Municipalities are required to 3 create recycling plans and adopt and enforce a recycling ordinance. Waste haulers or disposal facilities must notify the municipality if a person has discarded recyclable items. Municipalities may fine violators. Universal Waste Rule - Universal waste rules include the handling and disposal of electronic devices, 3 lamps and computers. The Company must follow all rules for a small quantity generator. Management of Used Oil - EPA regulates whether Used Oil is hazardous or not; the Company must follow 3 the federal and State requirements. Used Oil may be burned for energy recovery, reprocessed or recyc- led. Clean Water Act - The Connecticut Department of Energy and Environmental Protection (DEEP) - Bureau 3 of Water Management protects the waters of the state primarily by issuing and enforcing discharge per- mits. All discharges require one of several types of permits administered by the DEEP. These include the National Pollutant Discharge Elimination System (NPDES) permit for direct discharges, a pretreatment permit State Pollutant Discharge Elimination System (SPDES) for indirect discharges to a Public Owned Treatment Works (POTW), and general permits for storm water discharges. Clean Air Act - The CT air permit program follows the federal standards but in some cases is more strin- 3 gent. CT prohibits the construction, modification, or operation of any stationary source without first obtaining a permit or DEEP approval. Asbestos - CT regulates asbestos according to federal rules plus additional requirements for abatement 3 contractors and the disposal of asbestos. The state rules also apply to smaller projects that fall below the federal minimum threshold amount. The major concern is for „friable“ asbestos, however, some materials that are considered non-friable, such as vinyl-asbestos floor tile, can also release fibers when sanded, sawed or otherwise disturbed. Emergency Planning and Community Right to Know - This Act is intended to provide local governments 3 and affected communities with information concerning potential chemical hazards and accidental relea- ses of hazardous substances. ENVIRONMENTAL IMPACTS | 30

Legal and Other Requirements Relevance Environmental Hazardous Waste Operations and Emergency Response (HAZWOPER) - The Occupational Safety & Health 3 Administration (OSHA) has issued these regulations to protect workers that may be exposed to hazar- dous substances including Department of Transportation (DOT) regulated hazardous materials, hazar- dous wastes, and substances listed under Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA). Hazardous Material Transportation - Hazardous waste transporters must follow both EPA and DOT regu- 3 lations. While EPA regulations focus upon hazardous waste and the manifest system, DOT governs how hazardous materials are packaged, marked, and labeled before transport. Aboveground Storage Tanks (AST) - Aboveground storage tanks must be monitored for leaks, corrosion, 3 fire, vandalism, and damage by collision. A plan must be in place to ensure the security of the tanks as well. Spill Prevention, Containment, and Countermeasure (SPCC) Plan - Facilities that store specified amounts 3 of oil must have a SPCC plan to prevent any harmful quantities of oil from discharging into navigable waters of the United States. Other Requirements -The National Fire Prevention Association (NFPA) standards are referenced into the 3 state fire code and environmental regulations concerning the storage of flammable and combustible liquids, tank tightness testing standards, and criteria for the design, installation and maintenance of new tanks. Building fire code criteria are also specified. Safety - Employees have the right to petition, amend or repeal a standard that was adopted as either a 3 national consensus or established by Federal statutes or regulations. Employees have the right to work in a safe environment. General 3 Walking-Working Surfaces - Employees have the right to a safe walking and work surfaces. 3 Exit Routes, Emergency Action and Fire Prevention Plans - Plans should be in effect for emergency action 3 and fire prevention. Exit routes should be maintained and easily identified. Powered Platforms, Man lifts and Vehicle-Mounted Work Platforms - Installations shall meet all 3 requirements. Safety equipment must be easily accessible and regular maintenance performed. Occupational Health and Environment Control - Workplace should be safe for all employees. Regular 3 monitoring of the work space shall be performed to keep health and environmental risks at a safe level. Hazardous Materials - All requirements shall be met regarding the use, handling, storage and 3 transporting for all hazardous materials. MSDS should be available for all employees. Personal Protective Equipment - Employer shall ensure that all employees are instructed to use, and 3 given appropriate protective equipment. General Environmental Controls - The environment of the workplace shall be kept sanitary and all areas 3 shall be easily identified. Permit is required for confined space. Medical and First Aid - Medical personnel shall be available for all employees. First aid training available. 3 Fire Protection - Sprinklers, smoke detectors and fire extinguishers should be ready for use. Evacuation 3 plans should be in effect and exits are clearly marked. Materials Handling and Storage - Employees shall be trained in proper handling of materials. 3 All equipment used shall undergo routine maintenance and safety inspections. Machinery and Machine Guarding - Employees shall be trained in proper use of the machines. Guards 3 and safety devices should be put in use where necessary. Hand and Portable Powered Tools and Other Hand-Held Equipment - Employer is responsible for the safe 3 condition of the tools. Welding, Cutting and Brazing - Fire watch must follow FM Global protocol. 3 31 | ENVIRONMENTAL IMPACTS

Legal and Other Requirements Relevance Environmental Electrical - Qualified employees shall be trained in equipment techniques. Those qualified shall be 3 aware of risks and hazards associated with the equipment and usage. Toxic and Hazardous Substances - Employer shall train employees in proper handling of substances, pro- 3 vide necessary personal protective equipment, clearly label the substance and identify risks associated with its use. It is the responsibility of the employer to keep an employee’s exposure to any hazardous or toxic substance limited in accordance with the requirements. Inspections, Citations, and Proposed Penalties - Employers must comply with occupational safety and 3 health standards. Recording and Reporting Occupational Injuries and Illnesses - Employers are required to report work 3 related injuries or illnesses. Safety and Health Regulations for Construction - Ladders - General safety requirements for the use of 3 ladders Energy - there are limited energy regulations that pertain to our activities with the exception of refrigerant 2 phase outs beginning in 2020 (monitoring for legislative updates).

Risk of Potential Environmental Incidents Design engineers use new technology to contribute to All company employees are trained at the beginning energy savings worldwide, the wind energy generation of their service on accident prevention. Key points are and turbocharger bearing systems assist in the reduction reviewed such as proper personal protective equipment, of emissions and improve fuel economy in diesel trucks. material handling devices, safe chemical handling and basic ergonomic training. In the event of an accident Raw materials (steel) purchased to manufacture products employees are instructed how to report the emergency contains a relatively high (average >75%) recycled steel and obtain medical attention. Spill prevention is also content. Raw materials are delivered to the plants via discussed and the importance of working carefully and diesel freight trucks and the finished parts are distribut- not causing spill incidents. The discussion further re- ed in a similar manner. Another mode of transportation, views the importance of protecting the environment and sea freight is used for overseas orders. Barden minimizes energy conservation. transportation impacts by maximizing truckload capa- cities and scheduling deliveries. Balls are transported Emissions between the plants via inter-company vehicles. Sources of emissions at the sites are closely monitored and tracked to reduce emissions to the environment. Barden suppliers have a variety of potential environmen- Careful reviews of the chemicals are considered prior to tal impacts ranging from packaging, chemicals and their the use in production lines. processes. The Schaeffler Group has adopted the Compa- ny wide norm to eliminate and reduce certain hazardous

Carbon dioxide (CO2) emissions from employee transpor- substances. Prior to purchasing chemicals, it is required tation vary depending upon the length of the commute that suppliers provide detailed information about their and type of vehicle driven by employees. Currently there materials and are required to conform to environmental exists no regular public transportation to the Winsted standards. New chemicals are thoroughly investigated facility; however in Danbury there is limited bus service prior to their acceptance and allowance on to the site. available. ENVIRONMENTAL IMPACTS | 32

Waste Management Waste is carefully maintained to comply with regulations and to ensure that no spills or incidents occur. After re- viewing the options for disposal treatment it is clear that waste should be recycled as much as possible. The majo- rity of the sites’ wastes are currently in that category.

All sources of energy are monitored on a continued basis to verify optimum efficiency of associated equipment. The Danbury site has a Building Management System (BMS) which monitors the use of electricity, compressed air and Heating, Ventilation and Air Conditioning (HVAC) systems. This in combination with daily checks allows the site to better control the use of energy.

Maintenance The maintenance team consists of highly skilled trades- men which include electricians, stationary equipment mechanics, machine mechanics and general mainte- nance workers. This groups recognizes the significance of a proactive approach when responding to equipment requirements. Generally the corrective and preventative work is generated internally as a maintenance function resulting from inspections and other predictive measures.

Usage of chemicals and substances as well as semi-finished parts and purchased parts Chemicals are maintained in a safe manner and are stored in secure areas. Affected employees are trained on safe chemical handling and use as well as proper disposal rules set by the environmental team at the sites. The sites have no reason to suspect ground or ground water contamination.

The sites do not manufacture all parts needed for the production of bearings. Semi-finished and purchased parts are specifically ordered based on use and quality. These are stored at the plants for future orders. Chemi- cals are carefully screened prior to use including taking into consideration the corporate policy on prohibited chemicals for use in the products and the Barden strategy to reduce the impact on the employees and the environment. 33 | ENVIRONMENTAL IMPACTS

Indirect Environmental Impacts

Environmentally Sound Purchasing Packing The Barden Corporation purchases concentrated general The packing department recycles the materials used to cleaning products such as a general purpose cleaner for pack within the cartons; there is no longer the need to our facilities. A metering system reduces chemical and use peanuts to prevent movement within the box. This water usage. This reduces the need to order and trans- reduces transportation to the plant because packing ma- port large quantities of chemicals to the plants. terial are recycled from within the building. The exterior cartons must conform to shipping specifications but can The company utilizes a laundry service to wash shop ultimately be recycled at the destination. towels and gloves; this affords us the opportunity to decrease costs associated with disposal and reduces the need for raw materials. This results in immediate waste reduction and ISO14001 compliance advantage by not sending waste to landfills.

The Purchasing of office paper includes products that contain at least 10% post-consumer recycled content.

Service contractors are required to read and sign The Barden Corporation Environmental Health and Safety Guide for Contractors prior to services performed at the site along with providing a copy of their Certificate of Insurance. The Company expects all vendors to perform their duties in a safe and environmentally responsible manner and to adhere to all health, safety and environ- mental rules.

Contractors on The Barden property can also contri­ bute to environmental impacts indirectly through spills, accidents, fires and mishandling of waste. The Barden Corporation has developed a safety and environmental brochure as a tool to assist contractors in addressing potential impacts. Contractors are trained on these requirements and are required to comply with the rules and policies.

To reduce potential off-site impacts from waste handlers, The Barden Corporation uses certified waste disposal facilities and transporters to handle and dispose of wastes, minimizing risk to our company and the envi- ronment. Periodic site evaluation of their activities is conducted by the Environmental and Safety team. HEALTH AND SAFETY | 34

Risk Management

Fire protection Access control In Danbury there is a full time Fire Department that will All employees are issued identification/security badges respond to our needs. They are equipped to respond which allow them access to the building and other key to fires, explosions, chemical events and other related areas as needed. All visitors and contractors are issued emergencies. Winsted has a volunteer Fire Department badges depending on their type of business and areas that will also respond to an emergency at the plant. The of access. Both visitors and contractors sign in and out response time to both plants is within an acceptable each day and are briefed on the security rules by their time period. Company contact.

The buildings are equipped with sprinkler systems and Contractor Management suppression systems on select equipment. Fire extin- The Schaeffler Group requires that the environmental, guishers are located throughout the facilities for use health and safety measures be followed by all Con- by trained employees only. Our fire insurance company tractors during the performance of work, to ensure the inspects the facilities on an annual basis and reviews the protection of Contractor’s personnel and the Schaeffler function of suppression systems, sprinkler performance Group employees and property. The Contractor is solely and perform risk assessments for the prevention of fire responsible for ensuring that itself, its agents, sub- incidents. contractors and employees act in compliance with the Environmental, Health and Safety measures at the site. Plant fire brigade The sites have no fire brigades and rely on the city to All contractors must wear Identification badges at all respond. times when performing work on the premises. The site representative will review all security and evacuation Fire-fighting equipment measures with the contractor upon arrival. Contractors As required by code the sites have adequate portable are required to report to a designated area for headcount hand held fire extinguishers. A select group of emplo- during evacuation and may not leave the property until yees are trained in the use of these extinguishers. There the drill is completed. is equipment throughout the building that has dedicated fire suppression systems. In the manufacturing and Checkup office areas there are water sprinkler systems and or The Company contact reviews and completes a checklist smoke detection units. with the contractor at various intervals; this includes the review of any hazards and the proper measures to be Training and exercises taken. Employees practice evacuation drills annually for all shifts. Training sessions are conducted on fire extin­ Emergency plans and management guishers to a select group employees. The sites have an extensive Emergency Plan which inclu- des: plant evacuation procedures, fires, chemical spills, Plant security medical emergencies, aircraft intrusion, bomb threats, earthquake response, security measures including active shooter and power interruption. These are periodically reviewed by the Environmental, Health and Safety Coor- dinator in conjunction with other key personnel. Training on certain regulatory topics is conducted annually. 35 | HEALTH AND SAFETY

Health and Safety

Through programming and training the goal is to prevent Biometric screenings are conducted annually providing accidents and to keep employees engaged in safety employees with basic health information such as blood at work and at home. Overall the Company has seen pressure, height, weight, body mass index and choleste- a reduction in incidents at the Danbury plant with the rol numbers. Employees can follow up with the Company exception of 2013. In Winsted the site has realized a Nurse or their private physician for further information. downward trend leading to “zero” reportable incidents in 2014 and 2015. Targets are set as a result of the type of Occupational Health injuries or near misses reported at the sites. Injuries range from minor lacerations and abrasions to employees being referred to external medical facilities. Danbury Incident Rate All injuries and medical situations are evaluated in the Medical Department in Danbury by the nurse or First Aid 3.0 staff members before being sent off site. In Winsted the 2.5 employees report all injuries to the First Aid team and 2.0 at that point the decision is made as to the appropriate care required. 1.5

1.0 The Nurse supports both facilities’ First Aid Teams by 0.5 providing annual first aid and CPR/AED (cardiopulmo-

0 nary resuscitation and automated external defibrillator) 2011 2012 2013 2014 2015 training classes. The Team consists of committed and enthusiastic individuals, including several supervisors and managers. Although the nurse is only available three Winsted Incident Rate days a week the team has proved invaluable throughout the year. 8

6 Every year most of the employees take advantage of In- 4 fluenza vaccinations offered at the Danbury and Winsted facilities. Our employees are very generous in supporting 2 the annual Red Cross Blood drives sponsored by the 0 Medical department. 2011 2012 2013 2014 2015

A Stress Management Seminar was offered to all emplo- The Health and Safety Program at The Barden Corporati- yees at the Danbury facility. The participants reported on defines the measures and time periods taken to reach the information was not only enlightening but encoura- the specific health and safety objectives and targets. ging. This seminar provided the proper steps needed to It also defines which function and organizational unit cope with the challenges in everyday life, both at work is responsible for implementation of each measure. In and home. addition, programs are developed periodically such as ergonomics, electrical safety and safe chemical hand- ling. HEALTH AND SAFETY | 36

The Medical Department has a part time Physical Thera- Ergonomics pist who is readily available for treatment of work related Basic ergonomic assessments are conducted in conjunc- injuries, consultation regarding non-work related injuries tion with risk assessments. Supervisors are trained to and as a general medical resource for the employee. This evaluate their employee’s workstations and body mecha- inherently reduces cost as it eliminates the need for the nics. The Environmental, Health and Safety Coordinators worker to leave the job site, eliminates down time for assist with body alignment, adjustment of stools, chairs, their job process and the clinical fee. workstations height and ergonomic tooling selection. Employees are encouraged to participate in the work- The Medical Department assists in maintaining several space assessment and to offer feedback when adjust- other health and safety programs on site. The Hearing ments are made. Conservation Program is maintained in cooperation with the nurse and the Environmental, Health and Safety Periodic ergonomic assessments are conducted to Coordinators. In Danbury the nurse coordinates the ensure the safety of the employee in the work space. The prescription eye glass program as well. At the Winsted assessment may also include the evaluation of an entire site the Environmental, Health and Safety Coordinator is department or a single job process with emphasis on trained to perform visual acuities for select employees. work flow and cross training within the department. The Medical Department conducts eye exams for Non- Departmental training programs are an educational Destructive Testing and administers Medical Surveillance method tailored to the demands of a specific depart- Programs. The medical director evaluates all work related ment or job process. Individualized training programs injuries and is available to all employees for consultation. are conducted at a specific work station and may be followed with a training bulletin to all employees. New The nurse is a member of the Employee, Health, Safe- hire employees are trained in basic ergonomics during ty, and Environmental Committee and participates in the orientation period. monthly safety audits. The Medical Department is an integral part of the company and its part-time employees are kept active and inspired by the health and well being of fellow employees. 37 | HEALTH AND SAFETY

Social Aspects

Barden employees participate in annual food drives which benefit local shelters. Employees also have an opportunity to donate blood through the American Red Cross twice a year.

There are several luncheons held for employees at Thanksgiving, St. Patrick’s Day, safety luncheons and a Fourth of July Barbeque.

In December there is a Children’s Christmas party with Santa as the guest of honor.

As the Company meets milestones with no accidents there have been free ice cream and popcorn giveaways which is always popular with the employees. The Winsted site went 1,000 days without an accident and received fleece jackets in honor of their accomplishment.

The Barden Corporation has supported the local technical high school and their Manufacturing Technology programs for many years. Each year approximately twenty students arrive at the Danbury facility for a tour through the production floor with a concentrated discussion in the tool room followed by a question and answer period.

The technical high school students participate in the toolmaker apprentice program. The student is mentored with a senior toolmaker and monitored and coached in task assignments. Upon graduation they can become full time emplo- yees and work toward becoming a certified toolmaker. The Toolmaker Apprentice program takes approximately 4 years to complete.

Barden introduced the Computer Numerical Control (CNC) Apprenticeship Program for Turning and Grinding. The CNC program is a 3 to 3 1/2 year commitment depending on

completion of all requirements. Both programs are registered through the State of Connecticut and will require selected educational courses along with On the Job Training (OJT) time with a mentor or journeyperson.

39 | KEY INDICATORS

Key Indicators according EMAS III Danbury

Absolute Relative* Database 2013 2014 2015 2013 2014 2015 Reference data Added value in Mio. Dollar [Mio] 30.0 24.4 31.0 General Data Total headcount [EMP] 406 370 385 Size of property [ac] 18.5 18.5 18.5 Total sealed surface [ac] 5.00 5.00 5.00 0.167 0.205 0.161 [ac / Mio $] Biodiversity [%] 73 73 73

Input Water [gal] 4,773,588 4,315,999 5,167,998 159,226 176,711 166,753 [gal / Mio $] Electricity from external supply [kWh] 11,884,800 11,452,800 11,524,800 396,424 468,916 371,864 [kWh / Mio $] >> percentage of renewable energies (only from external supply) [%] 18.0 18.0 19.5 >> Amount of electricity from renewable energy (only external supply) [kWh] 2,139,264 2,061,504 2,247,336 71,356 84,405 72,513 [kWh / Mio $] >> Amount of electricity generated inhouse (conventional) [kWh] 0 0 0 0 0 0 [kWh / Mio $] >> Amount of electricity generated inhouse from renewable energy [kWh] 0 0 0 0 0 0 [kWh / Mio $] Electricity ∑ [kWh] 11,884,800 11,452,800 11,524,800 396,424 468,916 371,864 [kWh / Mio $] >> Percentage of renewable energy with regard to overall consumption [%] 18.0 18.0 19.5 Natural gas [kWh] 4,370,677 5,767,475 6,288,987 145,786 236,140 202,923 [kWh / Mio $] >> Amount from renewable energies [kWh] 0 0 0 0 0 0 [kWh / Mio $] >> Percentage of renewable energies [%] 0 0 0 Light fuel oil [gal] 2,964 2,574 2,916 99 105 94 [gal / Mio $] >> Amount from renewable energies [gal] 0 0 0 0 0 0 [gal / Mio $] >> Percentage of renewable energies [%] 0 0 0 Fuels for internal logistics Diesel [gal] 284 747 177 9,47 30,6 5,71 [gal / Mio $] >> Amount from renewable energies [gal] 0 0 0 0 0 0 [gal / Mio $] >> Percentage of renewable energies [%] 0 0 0 Gasoline [gal] 0 0 0 0 0 0 [gal / Mio $] >> Amount from renewable energies [gal] 0 0 0 0 0 0 [gal / Mio $] >> Percentage of renewable energies [%] 0 0 0 District heating [kWh] 0 0 0 0 0 0 [kWh / Mio $] >> Amount from renewable energies [kWh] 0 0 0 0 0 0 [kWh / Mio $] >> Percentage of renewable energies [%] 0 0 0 Propane / LPG [lbs] 2,016 1,440 1,184 67.2 59.0 38.2 [lbs / Mio $] Metanol [lbs] 46,025 56,444 65,412 1,535 2,311 2,111 [lbs / Mio $] Energy input ∑ [kWh] 16,502,362 17,491,965 18,097,599 550,446 716,179 583,944 [kWh / Mio $] >> Amount of renewable energy with regard to total energy input [kWh] 2,139,264 2,061,504 2,247,336 71,356 84,405 72,513 [kWh / Mio $] >> Percentage of renewable energy with regard to total energy input [%] 13.0 11.8 12.4 KEY INDICATORS | 40

Absolute Relative* Database 2013 2014 2015 2013 2014 2015 Emulsion concentrates [lbs] 26,056 14,718 10,716 869 603 346 [lbs / Mio $] Processing oils [lbs] 10,699 10,195 12,801 357 417 413 [lbs / Mio $] Solvent - VOC [lbs] 25,520 27,847 27,840 851 1,140 898 [lbs / Mio $] Solvent - non VOC [lbs] 0 0 0 0 0 0 [lbs / Mio $] Metal raw materials [lbs] 383,437 364,934 350,380 12,790 14,942 11,305 [lbs / Mio $] Metal semi finished products (external supply) [lbs] 323,953 310,808 341,106 10,806 12,726 11,006 [lbs / Mio $] Other raw materials [lbs] 0 0 0 0 0 0 [lbs / Mio $]

Output Waste ∑ [lbs] 1,550,628 1,178,790 898,657 51,722 48,264 28,996 [lbs / Mio $] non hazardous waste ∑ [lbs] 1,128,359 723,401 564,613 37,637 29,618 18,218 [lbs / Mio $] >> waste water [lbs] 905,560 504,480 360,438 30,205 20,655 11,630 [lbs / Mio $] >> waste oil [lbs] 140,301 159,950 133,350 [lbs / Mio $] >> grinding swarf / sludge [lbs] 48,160 31,956 37,837 1,606 1,308 1,221 [lbs / Mio $] >> solvon PB [lbs] 17,600 14,400 18,000 587 590 581 [lbs / Mio $] >> others [lbs] 16,738 12,615 14,988 558 517 484 [lbs / Mio $] hazardous waste ∑ [lbs] 5,045 3,190 5,260 168 131 170 [lbs / Mio $] >> sulfuric acid [lbs] 2,400 1,200 1,900 80.1 49.1 61.3 [lbs / Mio $] >> hydrochlord acid [lbs] 960 880 820 32 36 26.5 [lbs / Mio $] >> nitric scid [lbs] 900 800 1,300 30 32.8 41.9 [lbs / Mio $] >> others [lbs] 785 310 1,240 26.2 12.7 40 [lbs / Mio $] Scrap (ferrous + non-ferrous) ∑ [lbs] 417,224 452,199 328,784 13,917 18,515 10,608.67 [lbs / Mio $] >> Waste for recycling [lbs] 16,881 3,390 5,200 563 139 168 [lbs / Mio $] (without scrap) [%] >> Waste for disposal / [lbs] 145,502 125,661 114,638 4,853 5,145 3,698.95 [lbs / Mio $] removal [%]

CO2-equivalents ∑ [lbs] 8,739,261 9,121,334 9,171,689 291,503 373,458 295,937 [lbs / Mio $]

>> CO2-emissions from combustion processes at this site [lbs] 2,084,465 2,719,098 2,957,378 69,529 111,329 95,424 [lbs / Mio $]

>> CO2-emissions from electricity obtai- ned from external sources [lbs] 6,405,907 5,955,456 5,992,896 213,673 243,836 193,369 [lbs / Mio $]

>> CO2-emission factor per kWh electricity obtained from [lbs / external sources kWh] 0.539 0.520 0.520

>> CO2-emissions from district heating obtained from external sources [lbs] 0 0 0 0 0 0 [lbs / Mio $]

>> CO2-equivalent from the refrigerant agent amounts refilled due to leakages [lbs] 248,888 446,780 221,415 8,302 18,293 7,144 [lbs / Mio $]

SO2 - emissions from combustion processes at the site [lbs] 81 88 86 2.7 3.6 2.8 [lbs / Mio $]

NOx - emissions from combustion processes at the site [lbs] 928 1,205 1,310 31 49 42 [lbs / Mio $] Particulate matter emissons ∑ [lbs] 51.6 51.97 51.98 1.721 2.1278 1.6773 [lbs / Mio $] >> from combustion processes at the site [lbs] 2.6 2.97 2.98 0.087 0.1215 0.0963 [lbs / Mio $] >> from production an other processes [lbs] 49 49 49 1.63 2.01 1.58 [lbs / Mio $] VOC-emissions [lbs] 18,337 17,517 17,901 611.64 717.20 577.60 [lbs / Mio $] * In relation to added value Sources for evaluation of emission factors are the ProBas data bank (http://www.probas.umweltbundesamt.de - status: September 22nd, 2011) as well as the GEMIS 4.8 data bank (http://www.oeko.de/service/gemis/). 41 | KEY INDICATORS

Key Indicators according EMAS III Winsted (BCW)

Absolute Relative* Database 2013 2014 2015 2013 2014 2015 Reference data Added value in Mio. Dollar [Mio] 5 4 4 General Data Total headcount [EMP] 54 49 52 Size of property [ac] 18 18 18 Total sealed surface [ac] 4 4 4 1 1 1 [ac / Mio $] Biodiversity [%] 78 78 78

Input Water [gal] 391,603 447,707 462,295 81,584 101,752 105,067 [gal / Mio $] Electricity from external supply [kWh] 1,823,040 1,805,750 1,801,440 379,800 410,398 409,418 [kWh / Mio $] >> percentage of renewable energies (only from external supply) [%] 18.0 18.0 19.5 >> Amount of electricity from renewable energy (only external supply) [kWh] 328,147 325,035 351,281 68,364 73,872 79,837 [kWh / Mio $] >> Amount of electricity generated inhouse (conventional) [kWh] 0 0 0 0 0 0 [kWh / Mio $] >> Amount of electricity generated inhouse from renewable energy [kWh] 0 0 0 0 0 0 [kWh / Mio $] Electricity ∑ [kWh] 1,823,040 1,805,750 1,801,440 379,800 410,398 409,418 [kWh / Mio $] >> Percentage of renewable energy with regard to overall consumption [%] 18.0 18.0 19.5 Natural gas [kWh] 1,547,516 1,072,441 1,300,909 322,399 243,737 295,661 [kWh / Mio $] >> Amount from renewable energies [kWh] 0 0 0 0 0 0 [kWh / Mio $] >> Percentage of renewable energies [%] 0 0 0 Light fuel oil [gal] 0 0 0 0 0 0 [gal / Mio $] >> Amount from renewable energies [gal] 0 0 0 0 0 0 [gal / Mio $] >> Percentage of renewable energies [%] 0 0 0 Fuels for internal logistics Diesel [gal] 0 0 0 0 0 0 [gal / Mio $] >> Amount from renewable energies [gal] 0 0 0 0 0 0 [gal / Mio $] >> Percentage of renewable energies [%] 0 0 0 Gasoline [gal] 0 0 0 0 0 0 [gal / Mio $] >> Amount from renewable energies [gal] 0 0 0 0 0 0 [gal / Mio $] >> Percentage of renewable energies [%] 0 0 0 District heating [kWh] 0 0 0 0 0 0 [kWh / Mio $] >> Amount from renewable energies [kWh] 0 0 0 0 0 0 [kWh / Mio $] >> Percentage of renewable energies [%] 0 0 0 Propane / LPG [lbs] 132 99 106 28 23 24 [lbs / Mio $] Methanol [lbs] 0 0 0 0 0 0 [lbs / Mio $] Energy input ∑ [kWh] 3,371,327 2,878,769 3,102,968 702,360 654,266 705,220 [kWh / Mio $] >> Amount of renewable energy with regard to total energy input [kWh] 328,147 325,035 351,281 68,364 73,872 79,837 [kWh / Mio $] >> Percentage of renewable energy with regard to total energy input [%] 10 11 11 KEY INDICATORS | 42

Absolute Relative* Database 2013 2014 2015 2013 2014 2015 Emulsion concentrates [lbs] 12,437 9,215 11,428 2,591 2,094 2,597 [lbs / Mio $] Processing oils [lbs] 23,080 16,199 17,332 4,808 3,682 3,939 [lbs / Mio $] Solvent - VOC [lbs] 36,480 30,000 42,840 7,600 6,818 9,736 [lbs / Mio $] Solvent - non VOC [lbs] 0 0 0 0 0 0 [lbs / Mio $] Metal raw materials [lbs] 103,617 86,615 96,165 21,587 19,685 21,856 [lbs / Mio $] Metal semi finished products (external supply) [lbs] 0 0 0 0 0 0 [lbs / Mio $] Other raw materials [lbs] 20,175 17,131 14,050 4,203 3,893 3,193 [lbs / Mio $]

Output Waste ∑ [lbs] 464,891 390,414 331,750 96,852 88,730 75,398 [lbs / Mio $] non hazardous waste ∑ [lbs] 361,494 304,450 271,007 75,311.25 69,193.18 61,592.50 [lbs / Mio $] >> domestic waste [lbs] 30,865 31,526 32,460 6,430.21 7,165 7,377.27 [lbs / Mio $] >> oily water [lbs] 268,579 212,224 176,747 [lbs / Mio $] >> grind sludge [lbs] 54,000 50,000 52,000 [lbs / Mio $] >> rags and oil [lbs] 6,450 8,500 5,500 [lbs / Mio $] >> nPB [lbs] 1,600 2,200 4,300 333.33 500 977.27 [lbs / Mio $] >> others [lbs] 4,903 1,200 780 [lbs / Mio $] hazardous waste ∑ [lbs] 35,054 28,860 27,331 7,303 6,559 6,211.59 [lbs / Mio $] >> nital etch [lbs] 17,417 11,200 10,000 3,628.54 2,545.45 2,272.73 [lbs / Mio $] >> passivation [lbs] 12,800 12,800 15,600 2,666.67 2,909.09 3,545.45 [lbs / Mio $] >> waste oil sludge [lbs] 2,000 3,200 1,600 416.67 727.27 363.64 [lbs / Mio $] >> spent sodium bisulfate [lbs] 400 400 20 83.33 90.91 4.55 [lbs / Mio $] >> others [lbs] 2,437 1,260 111 507.71 286.36 25.23 [lbs / Mio $] Scrap (ferrous + non-ferrous) ∑ [lbs] 68,343 57,104 33,412 14,238 12,978 7,593.64 [lbs / Mio $] >> Waste for recycling [lbs] 6,614 7,694 8,040 1,378 1,749 1,827.27 [lbs / Mio $] (without scrap) [%] >> Waste for disposal / [lbs] 30,865 31,526 32,460 6,430 7,165 7,377.27 [lbs / Mio $] removal [%]

CO2-equivalents ∑ [lbs] 1,703,442 1,515,524 1,515,299 354,884 344,437 344,386 [lbs / Mio $]

>> CO2-emissions from combustion processes at this site [lbs] 688,243 476,984 578,550 143,384 108,405 131,489 [lbs / Mio $]

>> CO2-emissions from electricity obtai- ned from external sources [lbs] 982,619 938,990 936,749 204,712 213,407 212,897 [lbs / Mio $]

>> CO2-emission factor per kWh electricity obtained from [lbs / external sources kWh] 0.539 0.520 0.520

>> CO2-emissions from district heating obtained from external sources [lbs] 0 0 0 0 0 0 [lbs / Mio $]

>> CO2-equivalent from the refrigerant agent amounts refilled due to leakages [lbs] 32,580 99,550 0 6,788 22,625 0 [lbs / Mio $]

SO2 - emissions from combustion processes at the site [lbs] 6 4 5 1.3 1.0 1.2 [lbs / Mio $]

NOx - emissions from combustion processes at the site [lbs] 295 205 248 61 46 56 [lbs / Mio $] Particulate matter emissons ∑ [lbs] 0 0 0 0.08 0.06 0.07 [lbs / Mio $] >> from combustion processes at the site [lbs] 0 0 0 0.08 0.06 0.07 [lbs / Mio $] >> from production an other processes [lbs] 0 0 0 0 0 0 [lbs / Mio $] VOC-emissions [lbs] 1,846 2,089 1,347 384.58 474.77 306.14 [lbs / Mio $] * In relation to added value Sources for evaluation of emission factors are the ProBas data bank (http://www.probas.umweltbundesamt.de - status: September 22nd, 2011) as well as the GEMIS 4.8 data bank (http://www.oeko.de/service/gemis/). 43 | ENVIRONMENTAL INDICATORS

Input Danbury

[Gallons Electricity *1,000] Water Consumption Reduced consumption of kWh is due to energy efficiency 5,200 measures that were put in place for compressed air and chiller optimization. Variable Frequency Drives (VFD) 5,000 were installed on all chillers and cooling towers. A new 4,800 energy efficient compressor with controls was installed 4,600 in 2014. 4,400 [kWh/ [MWh] Electricity VA] 4,200

13,000 0.50 4,000 2011 2012 2013 2014 2015 12,500 0.40 Water [Gallons*1,000] 12,000 0.30

11,500 0.20 Natural Gas 11,000 0.10 After several years of a downward trend for natural gas 10,500 0 usage the site experienced a higher than normal use. The 2011 2012 2013 2014 2015 site removed an aging underground storage tank of #6 Electricity [MWh] | kWh/VA fuel oil in the fall of 2013. The site has only used natural gas for heating since the last quarter of 2013.

Water Consumption [MWh] Natural Gas Water consumption was steadily reducing from 2011 7,000 through 2014. In 2013 into 2014 evaporating tower optimization programs were installed utilizing Variable 6,000 Frequency Drives (VFD) fan controls and sequencing 5,000 controls further reducing the consumption of water. In 4,000 2015 a faulty water treatment valve which controls tower blow down was allowing water to go directly to drain. 3,000 This went unnoticed for a period of time and has since 2,000

been rectified. 1,000

0 2011 2012 2013 2014 2015 Natural Gas [MWh] ENVIRONMENTAL INDICATORS | 44

Output Danbury

Non-Hazardous Waste VOC Emissions The majority of the waste generated at the site is classi- Volatile Organic Compounds (VOC) emissions fluctuated fied as non-hazardous. In 2011 there was an excessive due to mechanical failures of aging equipment. Preven- amount of waste oil shipped off for disposal. The site has tive maintenance checks are conducted regularly and successfully targeted the reduction of waste oil disposal efforts to remove VOCs from production are in place. In over the years. Overall the quantity of waste generated the event of a leak maintenance is called immediately through production is steadily declining. to make repairs as some spare parts are available at the site. [Pounds] Non-Hazardous Waste The usage is monitored monthly based on the equipment 2,000 activity. 1,500

1,000 [Pounds] VOC Emissions

500 20,000

0 18,000 2011 2012 2013 2014 2015 16,000 Non-Hazardous Waste [Pounds*1,000] 14,000

Hazardous Waste 12,000 Hazardous waste at the site has been decreasing over 10,000 the years as less hazardous material replacements are 8,000 substituted for old chemistries. The hazardous waste 6,000 streams are mainly acids and flammable liquids which are used in specific operations. In 2015 there was a 4,000 slight upturn in hazardous waste disposal due quality 2,000 standards in the inspection areas requiring more fre- 0 quent tank changes. 2011 2012 2013 2014 2015 VOC Emissiona [Pounds] [Pounds] Hazardous Waste

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0 2011 2012 2013 2014 2015 Hazardous Waste [Pounds*1,000] 45 | ENVIRONMENTAL INDICATORS

Input Winsted

Electricity [Gallons] Water Consumption In 2014 and 2015 a number of new machines were ins- 500 talled replacing aging inefficent equipment. The newer machines are capable of running larger lot sizes in the 450 same amount of time which is a more efficient method of 400 producing balls. 350

[MWh] Electricity 300 250 1,850 200 1,800 150 1,750 100 1,700 50 1,650 0 1,600 2011 2012 2013 2014 2015 1,550 Water [Gallons*1,000] 1,500 2011 2012 2013 2014 2015 Natural Gas Electricity [MWh] Outsourcing Heat Treat activities began in 2014 due to an aging furnace. In 2015 the site began to increase Heat Water Consumption Treating in house however a Management decision was There is an ongoing investigation as to the accuracy of made to stop all Heat Treating effective August 2015. The the metered water through the town owned meter. The site now outsources 100% of Heat Treating activites. Town of Winchester and the site are actively involved in resolving this issue. [MWh] Natural Gas

1,600

1,400

1,200

1,000

800

600

400

200

0 2011 2012 2013 2014 2015 Natural Gas [MWh] ENVIRONMENTAL INDICATORS | 46

Output Winsted

Non-Hazardous Waste Scrap Attempts to increase process efficiency has led to the Scrap has continued to be reduced due to improved decrease in non hazardous waste. processes and yields.

[lbs] Non-Hazardous Waste [lbs] Scrap

400,000 80,000

350,000 70,000

300,000 60,000

250,000 50,000

200,000 40,000

150,000 30,000

100,000 20,000

50,000 10,000

0 0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Non-Hazardous Waste [lbs] Scrap [lbs]

Hazardous Waste It was necessary to conduct maintenance on an obsolete water treatment system therefore the waste disposal increased hazardous waste for 2013. During 2014 and 2015 hazardous waste remains stable.

[lbs] Hazardous Waste

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0 2011 2012 2013 2014 2015 Hazardous Waste [lbs] 47 | GOALS AND PROGRAMS

Goals and Programs

Numerous environmental protection actions have been implemented at the locations since the last complete environ- mental statement. Many small steps have helped to achieve our environmental goals, not all of which can be docu- mented here. The list below includes only those actions that were published in the last environmental statement.

Environmental goals Environmental program Completed? Actions Security System >> Installation of new security system >> Installation of new card readers, software and employee badges Environmental and Safety >> Committee conducted monthly >> Employees conducted 252 Envi- Program audits ronmental and Safety audits, all findings were closed out ISO 50001 Certification >> Prepare Energy program >> Documentation of energy use and programs for reduction, create site energy team Reduce injury rate and lost work >> Safety programming/awareness >> We continue to strive to meet the days from previous year goals set for us through training opportunities Safe chemical handling >> Safety programming/awareness >> Periodic reviews and training procedures Communication >> EHS programming >> Continue with classroom training and the Read and Understood pro- gram which promotes departmen- tal discussion and meetings. Near Misses and Lessons Learned assist in enhancing communication Goal has been achieved. Part of goal has been achieved. Additional actions planned. Goal not achieved. GOALS AND PROGRAMS | 48

Improvements not included in annual target planning

Environmental goals Environmental programs Responsible Completion Replacement of rooftop air >> Replacement of R-22 Maintenance before conditioning units 1/1/2020 Global Harmonization >> Health & Safety EHS 12/31/2015 Improve security systems already >> Security Maintenance 12/31/2017 in place and develop new ones as needed Security Notification procedure for terminated >> Security Human 12/31/2016 employees. An official method of no- Resources tifying employees of a termination. Adjust room temperature set point of >> Energy/Air Maintenance 2015 shop floor and adjoining areas as part of the energy savings program and

CO2 emissions Insulation of Hot and >> Energy Maintenance 2015 Cold Water pipes Upgrade storm water structures >> Storm Water Management Assembly 2015

Ipsen Furnace installation >> Reduce CO2 emissions PV 2016 Manufacturing 49 | GOALS AND PROGRAMS

New goals 2016

Setting specific and realistic goals is the only way to protect the environment in the long run. Environmental programs must include actions that can be implemented. We have selected the most important actions for the next three years. Responsibilities for implementing these actions have been clearly defined. The successful completion of environ­ mental programs further relieves the environment within the specified time.

Environmental goals Environmental programs Responsible Completion Enhance identification badge system >> Security Maintenance 2015 >> New system has updated pictures and access software installed Global Harmonization final >> EHS EHS 2016 implementation >> Create new labeling system >> Train employees >> Implement program Energy reduction >> Energy Management System Maintenance 2016-2018 >> Reduce Operating Hours for the HVAC Systems >> Personal fans- automatic turn off because of plant air conditioning >> Reduce individual AC units from office in the production area >> Reassess lighting requirements. >> Install energy efficient reflective roof VALIDATION | 50

Validation and Responsibilities

VERIFIER‘S DECLARATION:

Dr-Ing. R.Beer, with EMAS environmental verifier registration number DE-V-0021, accredited or licensed for the scope 25 and 29.32 (NACE Code), declares to have verified the site

The Barden Corporation 200 Park Avenue | Danbury, CT 06810 | USA 159 Colebrook River Road | Winsted, CT 06098 | USA as indicated in the environmental statement: release 2 from 07 July 2016 of the a. m. organization and confirms that the site meets all requirements of Regulation (EC) No 1221/2009 of the European Parliament and of the Council of 25. November 2009 on the voluntary participation by organizations in a community eco-management and audit scheme (EMAS).

By signing this declaration, I declare that

>> the verification and validation has been carried out in full compliance with the requirements of Regulation (EC) No 1221/2009. >> the outcome of the verification and validation confirms that there is no evidence of non-compliance with applicable legal requirements relating to the environment. >> the data and information of the environmental statement: release 2 from 07 July 2016 of the site reflect a reliable, credible and correct image of all the sites activities, within the scope mentioned in the environmental statement.

This document is not equivalent to EMAS registration. EMAS registration can only be granted by a Competent Body un- der Regulation (EC) Nr. 1221/2009. This document shall not be used as a stand-alone piece of public communication. 51 | VALIDATION

Done at The Barden Corporation, on 5th February 2016

Dr-Ing. R.Beer Environmental Verifier

Responsible for environmental protection at the Barden Corporation - Danbury location:

Dennis J. Miller Vice President / General Manager

Responsible for environmental statement at the Barden Corporation - Danbury location:

Janice Zuvich Environmental Protection Coordinator

The next consolidated (entire) Environmental Statement will be published in April 2020 at the latest.

In the years between, an annual update of the Environ­ mental Statement will be compiled for validation by the environmental verifier. Germ US 91074 Herzogenaurach Industriestraße 1-3 Hörauf Norbert by Schaeffler: Questions about environmental protection Danbury, CT06810USA 200 Park Avenue Dennis J.Miller at theBarden Corporation: Questions about environmental Protection © company andthis location. security andfire protection as well as general information onsocial benefits pr ovided by the Moreover, thereportcontains information about issues pertaining to occupational safety, plant regarding the voluntary participation of organizations intheeco-management andaudit scheme (EMAS). Regulation (EC) No. 1221/2009of theE uropean Parliament andtheCouncil dated November 25,2009 The s

A:

www.schaeffler.com www.bardenbearings.com 09132 822058 203 744-2211 09132 82452058 [email protected] 203 794-8227 [email protected] Thi Sc

tructure andcontents of this reportcorrespond to therequirements stated inAnnex IV of any: haeffler Technologies AG& Co. KG·2016 s publication orpartsthereof may not bereproduced without our permission.

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