Lear Sustainability

Initiative: the Why,

What and How

August 2014

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What Does Sustainability Mean at Lear?

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Three Pillars of Sustainability

Environmental Stewardship

Social Responsibility

Economic Prosperity

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Types of Data Being Collected

• Lear collects a variety of data streams across the enterprise

• All of this data is aggregated and reported annually in Lear’s sustainability report

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Metric Goal

Energy Use 15% Reduction (Per Operational Man-hours)

GHG Emissions 15% Reduction (Per Operational Man-hours)

By-Product Recycling 20% Increase

Water Usage 10% Reduction (Per Operational Man-hours)

Social Projects All Plants Have at Least One Social Project Per Year to Help Local Communities

Lear’s Key Metrics and Global Goals

• Key data metrics have been chosen based on historical

availability of data, reporting requirements/sustainability

pressures, and areas of sustainability impact

• Below are Lear’s Global Goals for 2018 from a 2010 baseline

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Energy and Emissions - 2013

• 2013 Energy consumption

(MWh/mh) was reduced by 45.9%

over 2010 baseline usage.

• In 2013, Lear achieved an 37%

reduction in Greenhouse Gas

Emissions (Tonne CO2e/mh) over

2010 baseline.

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0.98%

0.31%

39.71%

2.06%

5.06%

51.88%

Diesel Gasoline Propane

Coal Natural Gas Electric Power

2013 Greenhouse Gas Emissions

48% 52%

Scope 1 Scope 2

2013Greenhouse Gas Emissions by

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Energy by Year

• We achieved a 12.4% reduction in Energy Consumption in 2013 when compared with 2010 baseline using absolute* values. *absolute means actual GHG emissions and is not normalized by hours worked.

Mwh/mh

2010 0.0121

2011 0.0111

2012 0.0084

2013 0.0066

Mwh/mh

Lear’s Global Continuous Improvement teams strongly supports our

sustainability efforts using lean manufacturing processes to identify energy

and waste reduction projects, track progress and operate a best practice

website to share successful projects. A sampling of energy reduction

projects undertaken at several plants around the globe during 2013 include:

• Replaced lamps with more energy efficient lighting such as T5 fluorescent and LED

technology.

• Installed a solar water heater to reduce energy consumption for process water.

• Heating the plant using waste energy from a Biogas powered combined heating and

power unit, provided by a supplier. Approx 300 t CO2 reduction per year and approx.

44% cost reduction.

• Modified roofing to let more sunlight in to reduce lighting requirements.

• Implemented plant monitoring to ensure task lighting and computers are switched off

during off shifts.

• Revised air compressor system to run smaller compressors to provide essential

compressed air for specific activities. Allows plant to turn off large compressors and

save energy.

2013 Energy Projects

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Emissions by Year

• Lear also achieved a 12.7% reduction in Greenhouse Gas Emissions in 2013 when compared with 2010 baseline using absolute* values.

*absolute means actual GHG emissions and is not normalized by hours worked.

CO2e Tonnes/mh

2010 0.00336

2011 0.00307

2012 0.00247

2013 0.00206

Tonnes CO2e/mh

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Key Water Risks and Water Stressed Regions

• Water scarcity can have a sizeable impact on our manufacturing operations

• We use water in many key manufacturing phases in our plants (metals and fabric plants)

• We cannot be certain we will always have access to the water we need

• Some of our facilities are located in regions where water supplies are under stress

• Global climate change has the potential to further impact the availability and quality of water

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Water Consumption Rate

Metric 2010 baseline 2011 2012 2013 Water use (Gal/mh) 2.99 2.61 -12.7% 2.24 -25.0% 1.875 -37.3%

% reductions compared to 2010 baseline

By Products and Waste Management - 2013

• Major By-Product Recycling has consistently increased since 2010.

• Recycling rate dropped in 2013 as Reflected in the total waste volume decrease by 58% from 2012.

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Recycled

By-Product 2010 2011 2012 2013

Metal 45,953 54,456 83,319 83,170

Paper 786 1,644 3,228 4,566

Cardboard 7,401 18,640 22,687 24,476

Plastics 1,314 2,232 4,843 5,719

Wood

pallets/scrap 5,594 14,313 13,478 13,678

Total Recycling

(tons) 61,048 91,285 127,555 131,609

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100,000

200,000

300,000

400,000

500,000

Year

Global Waste Volume

2010 2011 2012 2013

Tonnes

Lear’s Key Metrics and Global Goals

• Below is Lear’s Global Data from a 2010 baseline

• We have exceeded all 2018 goals!!!!!!

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Note: Recycling Rate in 2013 reduced due to significant waste reduction.

• Lear has re-established a base line from the 2013 data

with the addition of new facilities. New emission factors

have also been utilized to update the CO2e emission

calculations.

• Lear has set new 2020 goals using the same percent

reductions and the new 2013 baseline.

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2014 New Baseline

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Steps to Becoming More Sustainable

• Systems must be put in place to manage sustainability issues

• Leverage lessons learned from ISO14001

• These steps will be necessary in the process

• The process does not end:

– Continuous improvement

– Changing sustainability pressures may keep “moving the finish line”

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• Sustainability Report – CEO message (first report signed off by Executive

VP-now signed by CEO)

– Global GHG’s, Water and By-Product Management

– Green Design - features our green products

– Community Programs - features a collage of pictures

of employees around the globe participating in events

Sustainability Report

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Environmental Stewardship

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• Definition:

– A corporation’s initiative to assess and take responsibility for the company’s effects on the environment and the impact on social welfare.

Corporate Social Responsibility

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Yangzhou T&C Plant

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One Heart One Lear Program - 2013

Lear Philippines has always prided itself for its active involvement in different community outreach programs as part of its Corporate Social Responsibility (CSR) initiatives. This outreach program includes, among others: gift-giving, school building repair, feeding program, provision water sanitation facilities, tables & chairs. This is the reason why Lear Philippines has been identified to take part in this year’s One Heart One Lear Program.

Fund Raising Activities Includes the following: -“Balik-Baterya” Program (Recycling of Used Lead Acid Batteries) - “Balik Botelya” Program (Recycling of Plastic Bottles) - Zumba Dance Party - Lear Fun Run The Proceeds of the Different Fund Raising Activities Balik Baterya Program - 98,784.00 Balik Botelya Program as of 11/15 - 11,199.00 Zumba Dance Party - 16,520.00 Lear Fun Run - 26,993.75 TOTAL - 153,496.75

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Questions?