building a sustainable supply chain...the reach regulation and determines that our products do not...

+

+

+

Building a Sustainable Supply Chain

++

sensitech.com @sensitech •

Table of Contents03 Building a Sustainable Supply Chain

05 Sustainability Is in Our DNA

06 Reducing Raw Materials

06 Recycling

06 Disposing Responsibly

07 Managing Suppliers to Appropriate Standards

08 Reduce, Recycle, Dispose: By the Numbers

09 Corporate Leadership – UTC

10 Natural Leadership – Carrier

11 About Sensitech

2

++

Building a Sustainable Supply ChainFor nearly 30 years, Sensitech® Inc. has helped leading companies in food, pharmaceutical, industrial and consumer goods, among others, protect their products—and their bottom lines. We provide them with supply chain visibility that includes cold chain, supply chain security and logistics performance, and combined, these products and services play a significant role in creating a sustainable supply chain. Our innovative monitoring devices and services help to maintain the quality, integrity and security of our customers’ valuable products at every step in their journey, all around the world.

The global supply chain is becoming more robust, secure and sustainable. A combination of global corporate responsibility programs and stricter regulations has accelerated the adoption of environmentally sustainable packaging and supply chain practices.

We support these practices and continually seek ways to lead our industry and protect our clients’ products while being environmentally sustainable.

Sensitech is part of Carrier, which strives to make the world a better place to live by being environmentally responsible, caring for the health and safety of our employees and customers, and actively supporting the communities in which we do business.

BUILDING A SUSTAINABLE SUPPLY CHAIN

3


4

Reducing raw materials

1Recycling where possible

2

Managing suppliers to appropriate standards3 4

Disposing responsibly

Sustainability Is in Our DNASince our inception, Sensitech has pioneered the practice of recovering, refurbishing and redeploying the monitoring devices our customers use, which significantly reduces waste. Sensitech also helps customers’ right-size their packaging for environmental sustainability because too much packaging can lead to excess weight, freight and fuel inefficiency, while too little can result in product damage and waste. The right amount and type of packaging, which can only be determined through accurate measurement and the use of high-quality analytics, can have a significant, positive impact on the environment.

For all Sensitech products, we engage multiple manufacturing sites around the world and work to stock inventory in local proximity to end users, thereby improving logistics efficiencies and reducing our overall environmental footprint. Specifically, Sensitech has implemented a global network with regional manufacturing and fulfillment locations. As an example, through sourcing product locally, we shortened the

replenishment lead-time in our European Union (EU) operation from 40 days by ocean to 5 days by truck. As a result, our customers have benefited from a more streamlined supply chain and an improved overall order fulfillment cycle time. We ship 98% of all outbound orders within two days.

We continually improve our sustainability practices with new and updated programs that enhance our environmental stewardship. These programs focus on four key strategies:

1. Reducing raw materials

2. Recycling where possible

3. Disposing responsibly

4. Managing suppliers to appropriate standards

These efforts have allowed both Sensitech and its customers to lower their environmental impact, supporting long-term sustainability and profitability.


5


Reducing Raw MaterialsOur efforts to reduce energy and waste begin early in the product development life cycle. Sensitech conducts rigorous and formal reviews at each stage of the product development process for our electronic-temperature monitoring and data logging devices to minimize the environmental footprint of new and existing supply chain solutions. The design of these products is closely scrutinized, with an emphasis on increasing product quality, efficiency and reliability while reducing or eliminating everything from silicone seals to screws and gaskets whenever possible. (See table on page 8 to review the results of these efforts.)

Recycling Sensitech’s Green Solutions Recycling Program promotes the return of our time and temperature data collection instruments for recycling. We encourage all customers to return every format of digital and analog time and temperature data recorders for proper recycling to reduce our waste footprint. Our regional facilities have historically collected devices and, through proprietary methods, Sensitech is able to reuse a considerable amount of the returned electronics. However, the lithium battery is usually scrapped. This has become a focal area over the past few years. Using newer micro-controller technologies, coupled with test software and improved battery profiles, Sensitech is now able to test and reuse a substantial portion of the electronics, including the soldered coin-cell battery. This process leads us to a projection that we will reduce our lithium waste by more than 60 percent over the next year.

In any given month, we recycle 99% of the devices returned, which amounts to approximately 250,000 recycled devices per month. The remaining 1% is returned damaged and non-recyclable. These are deconstructed and disposed of in a responsible manner, in compliance with industry standards. We also redeploy more than 90% of our portable, battery-powered GPS tracking devices, which eliminates approximately three tons of electronic waste per year.

Across our electronic datalogger product line, Sensitech reclaims the lithium batteries and components in the circuit board assemblies for secondary resale. Ryan® strip-chart recorders, which are composed of new and re-ground acrylonitrile butadiene styrene (ABS) thermoplastic, are 100% recyclable.

Disposing ResponsiblySensitech makes every effort to fully conform to the EU’s Waste Electrical and Electronic Equipment Directive (WEEE) compliance program, which requires acknowledgement of our products from “cradle to grave.” We also fully comply with the EU’s Restriction of Hazardous Substances Directive (RoHS), which bans the use of certain hazardous substances such as lead paint. In addition, Sensitech seeks to comply with all sustainability laws and practices specific to the countries in which we do business.

Sensitech contracts with one of the largest environmental solutions companies in the world to help ensure that the final scrapping of products is done in an environmentally sustainable manner. For the 12 months ending in December 2017, our agreement led to the recycling of 41,979 pounds (19,081 kilograms) of electronic waste and 40,379 pounds (18,350 kilograms) of lithium and lithium-ion batteries. This ongoing program will continue to reduce waste material from entering the general waste stream over the coming years.

2

1

2

3

6

Managing Suppliers to Appropriate StandardsAs a part of Carrier, Sensitech’s quality system is grounded in UTC’s operating system known as Achieving Competitive Excellence (ACE). ACE is a systemic, employee-facing operating tenet focused on driving continuous improvement to help ensure world-class quality in our products and processes. ACE has three elements: culture, tools and competency. The daily interaction of each element is what makes it an operating system. Results focus on excellent quality, on-time delivery, highly engaged employees working in a safe environment and best-in-class financial returns.

ACE is supported by a suite of well-established tools and a commitment of total employee engagement to increase operating efficiency, reduce waste and improve customer satisfaction. ACE tools and processes are made available to Sensitech’s suppliers worldwide and provide a platform upon which they can implement a proven system of continuous improvement that meets UTC’s operational standards. In addition to integrating continuous improvement programs with our suppliers, we qualify and repeatedly audit our suppliers with a focus toward overall quality, code of conduct, ethical standards, and environment, health and safety standards that protect our environment, facilities, people and products. Sensitech tracks supplier performance using the UTC Supplier Gold program, along with our own company specific supplier rating system. On-site Quarterly Business Reviews (QBRs) are standard practice as well as robust Business Continuity Plan (BCP) annual updates, resulting in global supply continuity.

Sensitech strives to comply with the conflict minerals provision (Section 1502) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, a U.S. federal law. This law was enacted, in part, to help ensure companies were not inadvertently sourcing “conflict minerals” or components thereof from the Democratic Republic of the Congo or adjoining countries. Our supplier approval process includes country-of-origin inquiry, supply chain due diligence and risk assessment, and any mitigation actions that may be necessary. It also includes an annual statement of compliance to the conflict mineral provisions that is a requirement of UTC International Trade Compliance protocols for key suppliers. Compliance audits are standard procedure for supplier due diligence.

In addition, Sensitech monitors the REACH Regulation including the candidate list of substances of very high concern (SVHC) on an ongoing basis, and assesses the impact of any added SVHC that are relevant to our products. Sensitech strives to avoid SVHC in our products for the benefit of our customers and the environment. Sensitech is aware of its obligations under the REACH Regulation and determines that our products do not require registration; herewith Sensitech provides the following REACH Article 33 communication.

UTC’s leadership in these areas has been instrumental in supporting Sensitech. UTC’s due diligence measures conform, in all material respects, with the internationally recognized framework presented by the Organisation for Economic Co-operation and Development (OECD) in its “Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High Risk Areas.” Additionally, UTC participates in industry-wide initiatives that raise awareness for responsible sourcing. For example, UTC is a member of the Responsible Minerals Initiative (RMI) Responsible Minerals Assurance Process (RMAP), formerly known as Conflict-Free Sourcing Initiative’s (CFSI) Conflict-Free Smelter Program (CFSP).

4


7


Global Reducing, Recycling and Disposing Efforts

Design Improvements The Impact Reduce Recycle Dispose

TempTale® Direct and TempTale Ultra

• Used a lighter weight monitor, resulting in a slimmer design with less individual components and greater reliability

• 20 g (28%) lighter than comparable designs

• Implemented a new packaged microcontroller unit (MCU), eliminating wire bonding and epoxy processes

• Reduced aluminum wire usage by 1.635 kg on a run rate of 2.5 million devices per year

• Reduced epoxy usage by 5,000 kg (11,000 lbs)

All TempTale models

• Introduced new design process that:

- Eliminated red glue containing polyglycol dimethacrylate from printed circuit board assemblies (PCBA) fasteners

- Reduced the use of plastic in the strip chart recorder (SCR) housing

- Eliminated components in real-time device hardware using new chip technology, which added functionality while reducing board population

• Used new battery technology with extended life to reduce the need for replacement of multiple-use device

• Improved EH&S with less risk of skin and eye irritation

• Reduced assembly material by 0.025 g

• Reduced landfill waste by 50 kg per year (based on estimated scrap rate of 2 millimeters per year)

• Eliminated Almost 13,700 kg (30,000 lbs) of acrylonitrile butaiene styrene (ABS)

• Eliminated 11,000 kg of epoxy and 100 kg of various other waste

• Eliminated millions of individual components annually from manufacturing, recycling, and waste-disposal processes

TempTale GEO devices

• Replaced hard case with TempTale GEO/VizComm Prime, eliminating the need for a second housing, pull start board, and additional wiring harness

• Reduced material usage and scrap by 27,214 kg (59,870 lbs) of plastics and 53,279 meters (174,800 ft) of electrical wire in 2018 to date

• Improved the device’s efficiency and battery usage to reduce the quantity of lithium batteries used

• Eliminated 19,270 kg (42,394 lbs) of lithium metal batteries

VizComm™ Prime tracking devices

• Eliminated the need for a separate GPS chip by leveraging the integrated GNSS chip in the newly adopted cellular module

• Reduced the units overall weight by .2g and reduced scrap for used devices

TempTale Ultra models

• Conducted in-house repairs rather than scrapping discarded units

• Repaired 282,615 devices at an average of 40-50 grams per device, saving 12.7 kg of scrapped devices from landfill

TempTale 4 models

• Introduced a new CR2450 battery, eliminating the need to replace batteries for the life of the product

• Reduced battery scrap, batteries and labor for 1.5 million batteries

• With a weight of 8.78 g each, reduced battery replacement by 13,170 kg (30,000 lbs) per year

• Introduced new batteries with new smart battery life • Reduced annual battery replacements by approximately 624,000 batteries, resulting in direct material and labor cost savings

Reduce, Recycle, Dispose: By the Numbers

Here are a few examples of our reducing, recycling and disposing initiatives. Sensitech is achieving the sustainable reduction of raw materials, recycling where possible, and practicing responsible disposal.

8

Corporate Leadership – UTC At Carrier, sustainability means profitable, responsible operations that do not compromise the environmental and economic health of future generations or the well-being of our employees.

Every five years, UTC sets aggressive new sustainability goals for our environment, health and safety performance. Our goals and progress are reviewed by the UTC Board of Directors and CEO. We set our first goals in 1992, and they have been an invaluable tool for operational improvement. Our 2020

goals challenge us every day to continue to build on our legacy to make improvements in the health and safety conditions of our workplace, the environmental performance of our operations, the sustainability attributes of our products, and to make improvements in the sustainable practices of our supply chain.

We continuously work to implement sustainable solutions in the design of our products and in our operations. We also encourage suppliers, customers and employees to achieve sustainable outcomes.

The company is on track to meet its 2020 goals, which include the following percentage reductions from 2006 baseline figures:

Greenhouse gas emissions—

decrease

Water consumption—

decrease

Total industrial process waste—

decrease

Non-recycled industrial process waste—

decrease

33% 62% 45% 54%CO2


9


Natural Leadership – CarrierSensitech’s parent organization, Carrier, takes an approach to sustainability rooted in three beliefs:

• Green products must start at a green company.

• Global dialogue can rebalance the built environment with the natural environment.

• Green building will accelerate with education.

Carrier and Sensitech structure their investments, global outreach and customer approach in ways consistent with these beliefs. Sustainability goals throughout UTC address not only factory operations but building design, product design and materials, and critical suppliers. Sensitech’s headquarters in Beverly, Massachusetts is an Energy Star Certified building.

UTC businesses around the world measure success with the same set of financial, operational, ethical, environment and safety metrics.

Sensitech takes a holistic view of our responsibility toward global environmental stewardship. As part of Carrier, Sensitech is uniquely positioned to leverage the power, experience and expertise of a global organization in driving overall corporate goals and performance associated with improving the world in which we live and preserving the environment for future generations.

10

About SensitechSensitech Inc. is a world leader in supply chain visibility. Our innovative monitoring products and services help to maintain the quality, integrity and security of our customers’ valuable products at every step in their journey, all around the world. For nearly three decades, leading companies in the food, pharmaceutical, industrial, consumer goods and other industries have relied on Sensitech to help protect their products—and their bottom lines.


11

Sensitech Inc. • Global Headquarters • 800 Cummings Center • Suite 258X • Beverly, MA 01915-6197

1-800-843-8367 • +1-978-927-7033 • Fax: +1-978-921-2112 • [email protected]

© 2019 Sensitech Inc. All Rights Reserved.


building a sustainable supply chain...the reach regulation and determines that our products do not...

Documents