PPG Aerospace Environmental Compliance and Sustainability

Noel Pacheco, CHMM Global Environmental Manager, PPG Aerospace

PPG Industries

Global manufacturer of glass, fiberglass, and coatings Operations in over 70 countries; 42,000 employees Strategic Business Units: • Architectural Coatings • Automotive OEM • Automotive Refinish •  Industrial •  Flat Glass •  Fiberglass • Optical •  Industrial Coatings • Protective and Marine Coatings • Aerospace

PPG Aerospace

Headquartered in Los Angeles, California Manufacturer of sealants, coatings, and transparencies for both commercial and military airplanes 23 sites in 12 countries (U.S., Canada, U.K., Germany, France, Italy, China, Taiwan, Japan, Singapore, Australia, UAE) 2,600 Employees Worldwide Boeing, Airbus, Gulfstream, Sikorsky, Lockheed Martin, Northrop Grumman, Delta Air Lines,Triumph, etc.

PPG EHS Management System

PPG EHS Management System

EHS MS Elements: • Management Leadership, Commitment and Accountability • Risk Assessment and Management •  Facility and Equipment Design and Construction •  Information and Documentation • Personnel and Training • Operations and Maintenance • Management of Change •  Third Party Services •  Incident Investigation and Analysis • Community Awareness and Emergency Preparedness • Product and Supply Chain Stewardship • Assessment, Feedback and Improvement

Transportation of Dangerous Goods Management System

PPG EHS Management System

PSITs Product Stewardship Implementation Tools

PSIT3 – Process

Step 1 Inventory Template • Complete an annual inventory of all TDG activities and ensure

someone has accountability for compliance

PSIT3 – Process

Step 2 Regulatory Compliance • Develop compliance verification plan to audit DG activities •  Identify and correct gaps

PSIT3 – Process

Step 3 PPG Mandatory Practices (PPG Requirements) • Review applicable PPG Mandatory Practices and complete

compliance checklist •  Identify and correct gaps

Environmental Compliance

PPG Aerospace Approach: 1.  Facility Environmental Profiles 2.  Site Assessments to Verify the Profile Information 3.  Gap Analysis (i.e., air permit conditions) 4.  Monthly Data entry into EMEX System (i.e., sustainability) 5.  Risk-Based EHS Audits

•  3-5 Years •  Environmental, Health and Safety Topics •  Audit Scoring System •  Communicated to PPG’s Legal Department and CEO

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Facility Environmental Profile

We are committed to delivering lasting value for shareholders and customers by operating with integrity, working safely, respecting the contributions of our people, preserving the environment and supporting the communities where we operate.

New Sustainability Vision

Existing 2020 Goal Progress

Achieve 30 percent of sales from sustainable products by 2020.

30 percent of sales from sustainable products

Reduce hazardous waste to landfill by 20 percent by 2020 from a 2012 baseline

17 percent increase since 2012 due to waste from a furnace rebuild in 2015

Reduce non-hazardous waste to landfill by 10 percent by 2020 from a 2012 baseline. 6 percent reduction since 2012

Reduce energy intensity 1.5 percent per year. 23 percent reduction since 2012

Reduce greenhouse gas emission intensity 1.5 percent per year. 17 percent reduction since 2012

Reduce PPG illness and injury rate by 5 percent per year. 26 percent reduction since 2012

Implement wellness programs at 100 percent of PPG facilities globally by 2020.

71 percent of our facilities had a wellness program in 2015

Implement the community engagement framework globally by 2020.

65 percent of our sites met the requirements of the community engagement framework in 2015

2015 Progress

Existing 2020 Goal New 2020 Goal

Achieve 30 percent of sales from sustainable products by 2020

40 percent of sales from sustainable products and processes by 2020

Reduce hazardous waste to landfill by 20 percent by 2020 from a 2012 baseline 10 percent reduction in total waste disposal intensity by

2020 Reduce non-hazardous waste to landfill by 10 percent by 2020 from a 2012 baseline

Reduce energy intensity 1.5 percent per year

25 percent reduction in greenhouse gas intensity by 2020 Reduce greenhouse gas emission intensity 1.5 percent per year

Reduce total spills and releases rate by 10 percent per year

On our path to eliminating spills, ensure that we achieve an improvement of at least 10 percent per year in our spills and releases rate

Reduce PPG injury and illness rate by 5 percent per year Zero injuries. On our path to zero injuries, ensure that we achieve an improvement of at least 5 percent per year in our injury and illness rate

Implement wellness programs at 100 percent of PPG facilities globally by 2020

Implement wellness programs at 100 percent of PPG facilities globally by 2020

Implement the community engagement framework globally by 2020

Implement the community engagement framework globally by 2020.

Implement water management plans at priority sites

Sustainability Goals

Sustainability Key Performance Indicators

Sustainability – Energy Summary

Sustainability – Waste Summary

Sustainability Data Challenges

PPG Aerospace has a high degree of complexity when it comes to managing its environmental compliance and sustainability efforts. In order to be able to proactively manage compliance and implement responsible sustainability activities, we must have visibility of the facilities’ physical and management information and environmental data. It is not only seeing the data, but more importantly, analyzing it with the end-goals in perspective. However, it comes with serious challenges such as data integrity, communication with the sites (i.e., time zones), and language barriers.

Our Bottom Line