Trends Facing Environmental Health

1
Trends Facing Environmental Health Safety
Functions of Business

• Texas Instruments IncorporatedSensors
  Controls
• Francis J. Veale, Jr., Esq.
• Manager, Environmental, Safety Health Department

2
Agenda

• Introduction to Texas Instruments, Sensors
  Controls
• EHS Department Today
• Trends facing EHS Departments
• Final Thoughts

3
Introduction Texas Instruments Incorporated

• TI comprised of four business divisions.
• Semiconductor (85), Sensors Controls (10),
  Educational Technology Calculations (4), DLP
  TV (1).
• SC comprised of three business units
• Sensors, Controls, Radio Frequency Identification
• SC has more than 7,000 employees around the
  globe
• Technology Development and Manufacturing in nine
  locations in the Americas, Asia and Europe

4
Introduction Sensors Controls

• Environmental Recognition
• Selected Charter Member of EPA Performance Track
  Program.
• 2001 Governors Award for Excellence in Toxics
  Use Reduction.
• ISO 14001 Registered (November 2002)

5
Introduction Sensors Controls

• SC manufactures sensors that are used in various
  automotive systems.
• Supplies all the major automakers directly as a
  tier one supplier or through others as a sub-tier
  supplier.
• Subject to the EU End-of- Life Vehicle (ELV)
  directive restricting material content and
  disposal of vehicles.

Automotive Sensors
AirConditioning
Coolant Level
Low GAccel. Trans- mission OccupantWeight T
irePressure
OilPressure
ABS
PowerSteering
AngularRateSensor
6
Introduction Sensors Controls

• SC manufactures controls that are used in
  various electrical systems.
• Supplies all the HVAC, telecommunications, and
  appliance markets.
• Entire Control Products business product lines
  subject to globalization pressures.
• Cost and location of key customers driving the
  shift of manufacturing to Asia.

Control Products
7
EHS Functions Future Trends

• What are the roles of ESH function?
• Compliance with regulatory, customer, and all
  other applicable requirements to which the
  organization is subject.
• Prevention of ESH liabilities existing, related
  to the growth, and new from negatively
  impacting the organizations bottom-line.
• Improvement of the organization by supplying
  value added ESH services.
• The basic role of the ESH function remains as it
  is currently constituted, but the distribution of
  resources applied to each of the functional area
  changes.

8
EHS Functions Future Trends

• Compliance
• Operational Compliance With outsourcing of
  operations to best cost manufacturing locations,
  domestic compliance requirements not as great a
  focus as international compliance.
• Recent Chinese government guidance of enforcement
  against non-compliant companies thereby
  generating more market share for the remaining
  companies who follow the regulations.
• Product Compliance international material
  content and waste disposal directives, such as
  WEEE/RoHS and ELV, have become significant
  compliance requirements.
• These directives have created a new breed of EHS
  staffer Product Environmental Engineer (the E
  equivalent of Product Safety)

9
EHS Functions Future Trends

• EU Directives restricting Material Content
  (WEEE-RoHS, ELV) have caused OEMs and their
  entire supply chains to address, sometimes for
  the first time
• the material content of their products,
• processes for communicating this data to
  customers,
• the re-design of their products.
• While these requirements originate in Europe,
  they are quickly becoming de-facto international
  standards. Failure to comply will severely
  restrict the sale of nonconforming product.
• These requirements are becoming the source of
  major market discontinuities that will likely
  result in significant shifts in market share.

10
EHS Functions Future Trends

• Liability Prevention
• Liability Remediation Domestic remediation
  placing a premium on and managing liabilities
  according to regulatory requirements. but at
  lowest cost to owner, and redeveloping
  contaminated facilities.
• Stronger linkage between the real estate
  developers and the environmental firms that
  specialize in subsurface remediation.
• International Liability In addition to property
  liability, EHS function must learn to define the
  potential of acquisitions, new products and
  technology partnerships to increase company
  liability.
• Diminution of value due to inaccurate or
  incomplete assessment of liabilities related to
  international commerce.

11
EHS Functions Future Trends

• Improvement
• Product Improvement Trends show an increase in
  the quantity and complexity of EHS requirements
  worldwide. The EHS Function provides the
  expertise within the company to address these EHS
  requirements effectively.
• Advanced preparation (i.e., addressing the EHS
  concern before it becomes a requirement) is more
  cost effective than addressing the EHS concern
  after it becomes a requirement.
• Additionally, by addressing the requirement
  early, the company has the opportunity to turn
  the requirement into a competitive advantage.
• Management System Improvement International
  emphasis on management systems including
  registration to ISO 14001 and OSHAS 18001.

12
Final Thoughts

• The EHS Function is undergoing a dramatic change
  internationally.
• Domestic EHS Function dividing into three general
  categories
• Compliance Management with emphasis on management
  systems (ISO14001) and international compliance.
• Liability Management with emphasis on
  Brownfields.
• Product Environmental Engineering the
  environmental equivalent of Product Safety.
• Domestic EHS functions with responsibility for
  international locations must find an effective
  method for defining and managing international
  liability.
• Internationally, EHS Function typically
  emphasizes compliance with local requirements.