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Nypro Sustainabilityn y p r o 2 0 1 1 s u s t a i n a b i l i t y r e p o r t

Who is Nypro?Nypro is a leading global, custom precision plastics products manufacturer. With $1.2 billion in sales in Fiscal 2011, we operate 41 locations in 14 countries employing more than 17,000 people. Nypro’s mission is “To serve our customers with integrated, innovative and environmentally sound manufacturing solutions, built on Nypro’s global plastics leadership, creating value for our team members, communities and shareholders.”

Nypro is committed to the concept of “shared value”— operating in a manner that builds our business and the society we serve. As a vertically integrated leader in plastics manufacturing, Nypro offers virtually all aspects of the plastics production processes required by the world’s leading companies, including product design and development, mold making and design, precision injection molding, advanced decoration, assembly, contract manufacturing for fully finished and shipped goods, supply chain management and diversity supply. Markets we serve are Healthcare, Consumer & Electronics and Packaging, along with additional markets through our strategic companies.

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Dear Reader:

the challenges facing manufacturing have never been greater

than they are today. since nypro was founded in 1955, we have

approached these challenges by adhering to strong principles that

promote sustainability, responsibility and respect.

our business has been growing steadily for 56 years, navigating

through dramatic changes in the plastics space, numerous recessions

and a constant migration of markets all over the world. in our chosen

markets, we know that patients need better, less invasive healthcare

devices that minimize time spent in a hospital setting. consumers

need helpful products and packaging that combine complex modern

technology with time-honored traditions of simplicity and frugality.

and the world needs plastics companies that take to heart the need

to reduce, reuse and repurpose.

if nypro inc. had a middle name, it would be technology. we were

the first plastics molder created specifically to mold engineered plas-

tics. we have always taken pride in hiring and developing engineers

who can partner our knowledge of plastics with the leading global

companies in healthcare, packaging and consumer electronics. we

are constantly developing our own ideas, and employing the good

ideas of others, to satisfy our customers with improved products

that delight their markets.

the nypro corporate mission makes

our intentions clear — “to serve our

customers with integrated, innovative

and environmentally sound manufac-

turing solutions, built on nypro’s global

plastics leadership, creating value for

our team members, communities and

shareholders.” we have team members

who are stockholders all over the world,

and our communities are where our

team members work and live, so this company really is all about our own

people and how they serve our customers. you will see the term “shared

value” many times in this report — it means that we believe that our efforts

should benefit our society at large as they benefit our business and our

customers. we have grown through the years and continue to have

excellent prospects because we recognize this unique connection and

we demonstrate it to our customers and ourselves every day.

please let us know if you have any questions about sustainability at

nypro or if you have any suggestions about improvements that we

could make in our sustainability activities. our livelihoods depend

on it. thank you.

ted lapres

president and ceo

nypro inc.

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we believe in respect and civility. we behave toward each other in a

positive, supportive and dignified manner. our systems and facilities

are designed to provide a safe and positive working environment. we

collaborate actively through common goals, objectives and solutions.

we promote individual initiative and creativity. we believe in treating

others as we would have them treat us.

ethical behavior is at the root of all nypro decisions and actions. it is

a basic value of nypro that all team members be viewed by others as

highly ethical and thoughtful. nypro team members do what we say

we will do. nypro team members actively consider the intended and

unintended consequences of all activities carried out in the company’s

name and act accordingly.

nypro believes in profitable performance. sustained growth and

profitability are essential to our health and prosperity as a company.

nypro uses its growing profitability to assure that it can efficiently

serve its customers, build equity for its employees, create jobs,

pay taxes and uphold our long tradition of service and success.

Nypro Values and Core Beliefs

nypro’s vision is to build a superb global organization that is sustain-

able, responsible and continually improving. we do this with total

commitment to our customers and to their customers. our success

is derived from a passion to serve, characterized by flexibility, adapt-

ability, innovation, trust and transparency. our goal is to provide

quality products and services that meet the needs of our customers.

we believe in individual worth and integrity. all jobs within our

organization have a real value. all team members deserve respect.

we are committed to making a contribution to our communities,

our customers, our team members, our society and our environment.

nypro is focused on helping our customers and partners to succeed

and in turn sharing our financial success with our team members.

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our mission

To serve our customers with integrated, innovative and environmentally sound manufacturing solutions, built on Nypro’s global plastics leadership, creating value for our team members, communities and shareholders.

nypro inc. environmental, HealtH and safety policy

nypro is committed to being an industry leader in conducting our business

responsibly to protect our employees, the public and the environment. our

environmental, Health and safety (eHs) commitment is a core value and an in-

tegral part of our business activities. All Nypro employees and contractors

are responsible for working to promote safe and healthy environments

for our co-workers, contractors, visitors, customers and the communities

in which we operate. it is our objective to meet or exceed all applicable eHs

laws and regulations in our business activities. in addition, we will continually

work to achieve the following eHs objectives:

• design and operate nypro facilities and equipment so as to prevent

events that could have an adverse impact on people’s health and

safety and the environment, cause significant property loss, or result

in business interruption.

• provide each employee with appropriate training necessary to acquire

the skills and techniques needed for the safe and healthy performance

of his or her work.

• encourage and expect our employees to participate in the development

and implementation of eHs programs and activities.

• drive environmentally sound and suitable manufacturing methods

and techniques throughout the organization.

• make behavior consistent with this policy a condition of employment

for our employees and contractors, as well as a measure of their

success with nypro.

• improve our eHs programs and performance through periodic

evaluation, review, and implementation of appropriate corrective

and preventive actions, and by focusing on behavior safety.

we will not consider nypro to be a successful company, regardless of

how well we do in production, sales or profits, unless the principles

of this policy are followed to the best of our ability.

ted lapres

chief executive officer

nypro inc.

Nypro’s Sustainability Priorities and Goals

our goal at nypro is simple and yet very challenging — to be the

world’s most respected plastics molding company in terms of sustain-

ability. we intend to earn this status through strategically balancing

business opportunities with social, economic and environmental

responsibilities. we believe that performance must be measured in

financial terms as well as by our service to our customers, our people,

our communities and our planet. as a contract manufacturer wholly

dependent upon ongoing service to customers, nypro employees

at every level are aware that our success is intrinsically connected to

the success of others. our sustainability program is an outgrowth

of this belief.

nypro’s four dimensions of sustainability are customers, people,

communities and the world. sustainability is an evolving process,

and as we at nypro set forth toward that end, we have committed

ourselves to measuring and reporting our progress in order to mark

our accomplishments, learn from our setbacks and weaknesses, and

drive us toward our sustainability goals. one ambitious yet attainable

goal that we have set for this decade is to slow the growth of our

water, energy and carbon footprint to a rate that is less than 50%

of our revenue growth.

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to assure that nypro operations and people everywhere have a clear

understanding of their obligations under the company commitment to

sustainability for customers, people, communities and the world, nypro

has established three top level boards — an environmental, Health and

safety & sustainability (eHs&s) council, an environmental, Health and

safety (eHs) board of directors and a sustainability council.

the eHs&s executive council is chaired by nypro president and

ceo, ted lapres. the members of the council include the entire top

management team — Jim buonomo, cfo & chief strategy officer;

Jim peck, corporate vp & General counsel; Greg adams, chief

technology and information officer; paul Kayser, Group president for

packaging; boris levin, Group president for Healthcare and nelson

ngai, Group president for consumer & electronics. Kristine lesso,

senior director, eHs&s and stacey lucas, a partner with the advisory

firm environmental resource management also are on the council.

the council defines the eHs&s strategy for the company and sets the

overall direction for all eHs&s activities. this board meets quarterly

and assures that eHs&s issues are deliberated and demonstrated

from the top down throughout the company.

the eHs board of directors assists in assuring that issues of interest

to the company also are addressed from the bottom up, at all levels

throughout the global structure of nypro. this board is chaired by

Jim buonomo, cfo & chief strategy officer and a member of the

eH&s executive council. board members are Kristine lesso, senior

director eHs&s; maria fung, senior director, Human resources, con-

sumer & electronics; Kent yiu, vp, operations, consumer & electronics;

James o’Gorman, vp, operations, europe, Healthcare; steve Holland,

vp, operations, americas, Healthcare; tom frost, Global eHs manager,

Healthcare; chuck porch, Global director, eHs, packaging; Kris nielsen,

vp operations, packaging; Julio oropeza, managing director, nypro

Kánaak; John casali, nypromold and John taupier, np medical. this

board ensures that all nypro operations throughout the nypro world

are in alignment with corporate eHs&s objectives.

the sustainability council is chaired by Kristine lesso, senior director

eHs&s. this council is comprised of key stakeholders from the value

chain and is responsible for operationalizing the sustainability vision

set forth by the eHs&s executive council in addition to measuring,

monitoring and reporting sustainability results throughout the

organization.

collectively, these nypro executives and specialists have taken respon-

sibility to implement and report regularly to the nypro inc. corporate

board of directors on the issues of environment, health, safety and

sustainability. they work at all levels through nypro’s global organi-

zation to continue the rich traditions of caring and commitment that

have signified nypro and its people since the company was founded

56 years ago.

Our Management’s Commitment to Sustainability

our customers6

Developing sustainable, functional technologies that lessen the environmental impact of our customers’ products is a primary focus.

The greening of our performance is the greening of our customers’ performance. in the new market reality,

sustainability is essential to any product offering and contract manufacturing service. as part of our mission to offer an integrated insight to

manufacturing model, radius product development, a nypro company, strives to create product innovation and development solutions that

are manufactured using less material, need less energy to transport and meet or exceed green supply chain criteria. this model enables the

passing on of shared value for the company and its society from our operations to our customers and concurrently to their customers. 7

sustainable tecHnoloGy and innovation

at nypro, responsibility to our customers, our people, our communi-

ties and our planet matters. developing sustainable, functional tech-

nologies that lessen the environmental impact of our operations and

our customers’ products is a primary focus. for 56 years, nypro has

been an innovation leader in material science, coating and advanced

manufacturing. to enrich and share our accumulated knowledge,

nypro has sponsored symposia on sustainable topics in the plastics

industry. nypro’s technology team shares innovations through the

release of “technology spotlights” for our customers, employees

and partners. this knowledge management outreach enables us to

continue evolving as a leader in technical innovation for sustainability,

providing shared value across the value chain for our business partners

and society at large.

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At Nypro, responsibility to our customers, our people, our communities and our planet matters.

case study — tHe replenisH system

the ecological impact of packaging for household liquids is a chal-

lenge for consumers, retailers and manufacturers who are seeking

products with minimal environmental impact. traditionally, most con-

tainers for household liquids have been single-use, heavy to transport

and not designed for end-of-life reclamation which makes them liable

to end up in landfills. responding to these concerns, the founder of

the replenish system came to radius product development, a nypro

company, with the challenge to design and manufacture an entirely

reusable and recyclable system that could reduce the burden on both

the planet and consumers’ wallets. the radius-designed replenish

spray bottle is a sustainably-evolved, two-part bottle and pod con-

centrate system. by snapping a pod of liquid concentrate (household

cleaner, laundry liquid, etc.) onto a durable, reusable bottle, invert-

ing the bottle and filling it with tap water, a consumer receives the

equivalent of four traditional bottles from a single pod. the result is

an innovative and unique product that uses 90% less plastic and pro-

duces 90% less carbon than standard spray bottles throughout its life

cycle. the replenish system gives customers four times the product,

contains biodegradable and non-toxic liquid, and at the end of its

useful life, can be dropped into any recycling bin, closing the loop.

case study — flo®

flo® enables mobile phones to deliver powerful graphics on enhanced

displays while optimizing battery life. technological progress has placed

increased strain on batteries, as consumers demand fast “G-plus”

connection-speeds and high-resolution displays. nypro approached this

problem from a systems-level approach, deriving a solution from the same

process used to create optical disk media. the flo® platform quickly and

efficiently delivers clear, light and strong screens with machines designed

for compact disk production. these thin, durable screens use less power

to illuminate graphics and text, helping to stretch battery life and

providing shared value by ultimately reducing energy use.

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The result is an innovative and unique product that uses 90% less plastic and produces 90% less carbon than standard spray bottles throughout its life cycle.

case study — paint lines

traditional methods for painting plastic components used to spray-

coat one part at a time, both slowing production and resulting in low

paint transfer efficiency. when nypro became a major manufacturer

of mobile phone parts in the 1990s, we demonstrated an ingenuity

that ultimately spurred our rapid growth. in short, nypro developed

a manufacturing solution that increased throughput and asset utili-

zation, while decreasing waste. we re-engineered the paint line pro-

cess to produce twelve times as many components by layering and

rotating the parts as they travelled down the paint line. this method

dramatically increased production capacity, while using less energy

and producing less paint waste — another example of shared value

to nypro, our customers and our society.

case study — maxistm

in recent years, demands of the consumer electronics business have

dramatically shortened production cycles while still requiring complex

part designs for intricate devices. nypro’s maxistm modular precision

injection tooling platform represents the convergence of manufacturing

and business innovation to create shared value for nypro, our customers

and our society. a highly optimized and reconfigurable modular tooling

platform, maxistm uses a systems approach product development cycle,

delivering products in half the time of traditional methods. despite a

break-neck production pace, maxistm still allows product design evolu-

tion during ideation and conception. the maxistm systems approach

demonstrates nypro’s ingenuity to create a world-class value chain to

deliver scalable and sustainable manufacturing solutions globally.

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Nypro developed a manufacturing solution that increased throughput and asset utilization, while decreasing waste. We re-engineered the paint line process to produce twelve times as many components by layering and rotating the parts as they travelled down the paint line.

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case study — biocoatinGs

applying embellishment and coatings to plastics parts requires the use

of solvents. these compounds usually contain high levels of volatile

organic compounds (vocs), which evaporate into the air and result in

potential health and environmental damage. traditional processes can

require multiple coats, compounding the damage. as an alternative,

nypro has developed offerings of biocoatings or monocoatings, both

of which release fewer toxic emissions. biocoatings reduce environmental

impact through their use of renewable material and lower-emission sol-

vents. monocoatings combine paint and topcoats, halving the time, emis-

sions and pollution generated for each component. this initiative further

exemplifies the beneficial relationship between nypro’s efforts toward

sustainability and the health and safety of our customers and our planet.

Biocoatings reduce environmental impact through their use of renewable material and lower-emission solvents. Monocoatings combine paint and topcoats, halving the time, emissions and pollution generated for each component.

12 our people

Ethical behavior is at the root of all Nypro decisions and actions.

People are unequivocally Nypro’s most valuable asset. the consistent dedication shown by nypro employees separates

us from our competitors, and always has. our priority is a safe and healthy workplace where diversity is respected as well as promoted. we

encourage individual aspirations for professional development and provide training and advancement opportunities to facilitate these desires.13

safety ascension improvement model (a. i .m.)

the a.i.m. program brings nypro’s commitment to safety from

theory to practice. our safety record illustrates a comprehensive

approach to safety integration. last year, the nypro accident rate

was an impressive 82% below our industry average. through our new

a.i.m. program, plants routinely assess their current safety status and

map out a plan for continued improvement. to provide substantial

facility-wide improvement, we strive to integrate safety into all of our

operations. in short, a.i.m. is a system of continuing improvement,

driving toward a culture of growth where employees “ascend” to

a higher level of safety. we are proud to report a 50% reduction in

recordable injuries over the past two years, on top of a safety

record that was already among the best in the business.

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Level 1 Mount Wachusett (611 m)

Level 2 Mont Blanc (4,811 m)

Level 3 Pico de Orizaba (5,610 m)

Level 4 Mount McKinley (6,194 m)

Level 5 Nanda Devi (7,824 m)

Level 6 Mount Everest (8,848 m)

Reactive — Hazard Recognition — Focus on Unsafe Conditions Proactive — Focus on Unsafe Behaviors

The Ascension Improvement Model (A.I.M.)

Our safety record illustrates a comprehensive approach to safety integration. Last year, the Nypro accident rate was an impressive 82%* below our industry average.*NAICS Code 326119, 2010 U.S. Bureau of Labor and Statistics

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2007 2008 2010 2011fy08 fy09 fy10 fy110

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dart (days away restricted or transferred)

nypro intranet cafe for employees (nice)

nice is a computer-based series of kiosks, located at convenient

spots around nypro facilities. nice provides employees with conve-

nient access to company news and personal information, including

new job openings, payroll and benefits information.

profit sHarinG and stocK ownersHip

nypro has had its program of profit sharing and stock ownership for

more than forty years. through this program, employees of success-

ful nypro businesses and high performing individual employees are

rewarded for their achievements. operating globally, these programs

combine profit sharing based on employee-driven factors such as

on-time shipments, inventory and labor expenses. special allocations

of stock are distributed to employees around the world who are

deemed to be performing at the highest levels.

nypro university

nypro university has been in operation for more than 30 years. based at

corporate headquarters in clinton, massachusetts, nypro university also

has “virtual” facilities at nypro facilities in asia and latin america. this past

year more than 500 nypro employees and more than 100 non-employ-

ees — including customers, suppliers and even competitors — have taken

classroom courses to help them advance in their plastics-related careers.

nypro university is comprised of its own staff as well as nypro specialists

who serve as faculty, and it partners with colleges and universities in the

united states, latin america, europe and asia. among its offerings are

certificates and degrees ranging from english for speakers of other

languages to associates certificates, bachelors and master degrees.

This past year more than 500 Nypro employees and more than 100 non-employees have taken classroom courses to help them advance in their plastics-related careers.

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talent manaGement

in addition to 25 years of success with nypro university, nypro has

recently initiated a number of other talent management programs

designed to assure that the skills and potential of our employees

are identified and supported to bring the best possible results for

them and nypro. during the past year, an intense skills assessment

and development project was introduced worldwide throughout the

company. this has been accompanied by a carefully planned succes-

sion planning program and enhanced efforts in talent acquisition and

performance management to assure that nypro has the people and

nypro people have the skills and knowledge necessary to achieve

the company’s strategic goals.

Global bandinG

over 56 years, nypro grew from less than a hundred people at one

facility in clinton, massachusetts to 41 locations in 14 countries em-

ploying more than 17,000 people. to assure that all nypro employees

are treated fairly and as equally as possible in terms of compensation

and available benefits, a ”global banding” project was completed over

the past three years which has resulted in grouping all employees

worldwide into a series of job level “bands” with equivalency stan-

dards applied for relative pay and benefits. all employees know that

the nypro people with whom they interact in other lands and other

languages are being compensated in roughly equal terms to them-

selves for the same types of effort and results.

satisfaction surveys

annually, nypro conducts an all-employee survey which provides

employees the opportunity to provide valuable feedback in a number

of areas related to job satisfaction. this is done at the corporate level

and also for all individual business units. this process has helped to

facilitate the continual review and upgrade of processes and programs

and their associated success and impact as perceived by employees.

confidential etHics Hotline

nypro maintains an ethics hotline and publishes a Guide to business

ethics to assist any nypro stakeholders in making ethical decisions about

the business and in reporting any concerns that they might have about

the ethics of actions or activities by members of the nypro community.

separate telephone numbers for 12 different global regions are available

to employees and other persons interested in nypro to report suspected

unethical, illegal or unsafe activity. anyone can email the ethics Hotline at

www.tnwinc.com/nypro or call in the united states by dialing 866-697-7699.

please see page 3 for the complete statement on nypro values and core beliefs.

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leader in supply cHain diversity: nypro KánaaK

nypro Kánaak represents a partnership between the sealaska corpo-

ration and nypro, with the goal of delivering customers the highest

quality custom injection molding and enhanced supply chain diversity.

for over a decade, the nypro Kánaak companies have provided

superior manufacturing solutions as both a certified minority business

enterprise and small disadvantaged business to companies such as

proctor and Gamble, Honeywell and dell computers.

nypro Kánaak is majority-owned by sealaska which is wholly owned

by the first peoples of alaska. sealaska’s 20,000 shareholders are

comprised of members of alaska’s tlingit, Haida and tsimshian tribes

guided by their collective traditions of environmental stewardship

and community. these native alaskan tribes are legendary traders

who are deeply connected to their lands which has enabled them

to successfully adapt to constantly changing environments and

global economies. they bring together wisdom and foresight of their

combined heritage to create an enduring corporation that provides

business opportunities, benefits and cultural strength for their people.

today, sealaska is the largest landowner and for-profit private employer

in southeast alaska with over $300 million in assets. dividends from

sealaska’s profits allow sealaska to provide economic, cultural and social

benefits for native alaskan peoples.

nypro Kánaak provides the best of both worlds — superior custom

injection molding with the benefits of supplier diversity. nypro Kánaak

unites the wisdom and foresight of two companies’ combined heritage:

nypro’s core value of exceptional customer service and expert manu-

facturing abilities, and sealaska’s native alaskan values. as a certified

minority business enterprise, nypro Kánaak can assist customers in meet-

ing their diversity supplier requirements. daily operations and majority

ownership rest with sealaska, fulfilling diversity regulations for state

and federal government contracts. while our status can help customers

meet their required goals, the real value of our diversity is the strength

of creativity and innovation we bring to the table every day. these core

competencies provide a crucial strategy and performance to meet

customer needs in today’s diverse marketplace.

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Nypro Kánaak unites the wisdom and foresight of two companies’ combined heritage: Nypro’s core value of exceptional customer service and expert manufacturing abilities, and Sealaska’s Native Alaskan values.

18 our communities

Over the years, we have learned that a company is only as strong as the communities that host it.

With 41 locations in 14 countries and 17,000 employees worldwide, nypro has a geographically-dispersed impact

on communities around the globe. in recognition of the role that our communities have in nypro’s performance, we are dedicated to engaging

and meaningfully giving back to our hosts through local outreach programs and charitable offerings. we encourage employee involvement in

activities that improve communities wherever we operate and support programs that strengthen our hometowns globally.19

supportinG tomorrow’s leaders — for inspiration

and recoGnition of science and tecHnoloGy (first)

for 21 years, nypro has been a sponsor of first, an international

competition where high school students vie to build the best robot in

a sports-like challenge. each year, nypro employees team with com-

munity volunteers and parents to mentor students from clinton High

school in the clinton High school/nypro first robotics team. nypro

has contributed more than $2 million in financial support and donat-

ed 23,000 employee hours toward this endeavor, and the investment

has certainly paid off. the Gael force team has won 18 awards and

championships, the students have earned $300,000 in science and

engineering scholarships and one national championship team even

got to meet the president of the united states in the rose Garden at

the white House. nypro’s participation in first demonstrates true

shared value. by sharing the expertise of its employees, the company

is helping to drive tomorrow’s technical innovation and developing

leaders for the future. more than 20 first alumni have joined

nypro as employees.

nypro foundation

nypro established the nypro foundation to put its spirit of service

into action by supporting charitable organizations important to nypro

communities and team members. since 1999, the foundation has

awarded more than $1.5 million to not-for-profits working in health and

human services, education, arts and culture and disaster relief. over

the past decade, the foundation also has spearheaded employee drives

to respond to humanitarian disasters around the world with generous

donations toward relief efforts. as part of its long-term vision, nypro

supports tomorrow’s leaders in scientific and technological innovation.

nypro recently donated more than $300,000 to science education in

massachusetts universities.

Since 1999, the Nypro Foundation has awarded more than $1.5 million to not-for-profits working in health and human services, education, arts and culture and disaster relief.

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Habitat for Humanity

supporting the communities that support us is both a responsibility

and a privilege. this year, the nypro packaging Group joined with

Habitat for Humanity to help build homes for families in need. nypro

employees in massachusetts and north carolina spent three days

constructing homes and building team spirit for the company and

their towns. to help, nypro donated its employees’ time and the cost

of construction materials. nypro intends to continue its relations with

Habitat for Humanity by assisting in the construction of homes in five

more communities where nypro packaging operations are located.

our long-term goal is for every employee to have the opportunity to

put their passion for service into action by building homes side-by-

side with co-workers, Habitat volunteers and local families.

nypro ireland

nypro ireland is a healthcare technology manufacturing facility located

in bray, ireland. last year, more than 21 clubs, groups, charities and

societies across a broad spectrum were supported by nypro ireland

either directly or through our employees. one inspired employee

climbed mount Kilimanjaro in aid of healthcare projects in ireland and

abroad. additionally, we are involved in sponsorship programs with two

local soccer teams and have partially funded a youth club trip for 45

local children under 11 to visit a premiership match in the uK.

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GivinG at nypro

$1,600,000

$1,400,000

$1,200,000

$1,000,000

$800,000

$600,000

$400,000

$200,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

the above chart shows the distribution record of the nypro foundation. community/

civic organizations have received $591,453; educational groups have received $410,540;

Health and Human services organizations have benefitted from $292,782; arts & culture

groups have received $108,860 and $57,500 has gone to disaster relief.

Health/Human services

education

disaster relief

community/civic

arts & culture

22 our world

At Nypro, we are responsible stewards of the environment. We strive to meet orexceed all applicable regulatory requirements in all areas where we operate.

As a global manufacturer with 41 locations in 14 countries and over $1 billion in annual sales, nypro recognizes that our operations have a wide environmental impact. compliance with regulatory requirements at all levels to assure that

we are operating legally is very important to us. we achieve this through the selection of renewable resources, the improvement of technology

and processes in our operations and by working with customers and suppliers to do the same. our commitment to this concept has been

institutionalized with an environmental, Health, safety and sustainability department, with corporate and business unit sections around the world.

our focus is to maximize shared value to our people, our customers, our communities and our world by reducing our carbon footprint, increasing

clean energy generation and use, reducing natural resource use and driving a green supply chain. we respect the communities that host us.23

electricity and water measurements

it has been said, “what’s measured, matters,” and it’s true. for

several years, nypro has tracked our energy and water usage from

each of our 18 manufacturing sites. we know that by taking notice

and marking our progress, we can use the data to create meaningful,

verifiable goals to improve our long-term production sustainability.

environmental improvement plan

nypro’s new environmental improvement plan (eip) is a centralized

system designed to track environmental performance at nypro’s produc-

tion sites worldwide. the system simplifies reporting for environmental

managers, and facilitates nypro’s ability not only to meet, but to exceed,

environmental compliance laws around the globe.

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24 Nypro enacted an “Energy Blitz” last year with the ambitious goal of $1 million cost avoidance. Our performance during the first year of this program has surpassed our short-term objectives and left us confident the foundation we’ve laid will pave the way for us to meet our longer-term objectives of world-class environmentally efficient operations.

first year at-a-Glance

Kilowatt Hours used. . . . . . . . . . 320,420,384

efficiency improvement . . . . . . . . . . . . . 2.7%

Kilowatt Hours avoided . . . . . . . . . 8,033,440

cost avoided . . . . . . . . . . . . . . . . $1,284,992

carbon avoided (metric tons) . . . . . . . .4,726

annual autos avoided . . . . . . . . . . . . . . . 901

sHared value tHrouGH an enerGy blitz

exploring ways to cut electricity consumption not only makes good

business sense, it saves customers money, increases profits and creates

a healthier community and environment for all of us. nypro enacted

an “energy blitz” last year with the ambitious goal of $1 million cost

avoidance. we focused on improving production efficiency through

baseline energy audits, high-efficiency lighting, automated controls,

switching to compressed air and insulating machine components.

employees at every level have diligently contributed to this initiative

by taking personal responsibility for things like turning off unused

devices, following proper shutdown procedures and turning off lights

when leaving the room. sites that act to lower their energy usage are

recognized as leaders in the company and held up as an example.

adaptive reuse of tHe old mill

the face of nypro’s commitment to sustainability is perhaps best encom-

passed in a 171-year-old, beautiful, “landmark” brick and wood former

carpet mill. when nypro needed a new location in 1972, we had two re-

quirements — economical and sustainable. rather than build a new struc-

ture, nypro recycled the historic “bigelow carpet mill” for our clinton,

massachusetts corporate headquarters. by renovating the building’s 16-

acre interior, nypro saved on new material and kept hundreds of tons of

bricks and beams from occupying a landfill. by keeping the mill standing,

now on the national register, nypro helped preserve the community’s

history, while providing both employees and visitors physical evidence

of our long-standing commitment to sustainable development.

25

fy11 sales fy10 sales costs avoided

enerGy blitz at-a-Glance

2006 2007 2008 2009 2010 2011

160,000

180,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

$2,500

$2,000

$1,500

$1,000

$500

$0

tH

ou

sa

nd

s (

kw

h)

tH

ou

sa

nd

s (

$)

Q1 Q2 Q3 Q40

$1,674

$1,767

$2,230$1,285

renewable power — mebane, nc

last year, nypro’s packaging plant in mebane, north carolina celebrated

the installation of nypro’s first alternative-energy generators for clean,

renewable energy from solar and wind power. these new sources of

power provide equivalent energy to operate several of the injection

molding machines at the plant. clean energy generation reduces expo-

sure to escalating energy prices, which transfers into long-term savings

and production predictability. these investments represent only the first

step in nypro’s transition to renewable energy sources, and one small

part of our efforts to provide genuine shared value to our business and

our society by reducing our carbon footprint. additional initiatives from

mebane include: an upgrade of 28% of the fleet to state-of-the-art all

electric molding machines; the replacement of outdated sodium ware-

house lights with high efficiency florescent lights improving both energy

efficiency and creating a safer work environment; the recycling of manu-

facturing (plastic) scrap to reduce landfill waste; and the migration to

an electronic invoicing and payments system for 100% of our suppliers.wo

rl

d

26

Nypro’s Packaging plant in Mebane, North Carolina celebrated the installation of Nypro’s first alternative-energy generators for clean, renewable energy from solar and wind power.

sustainable tecHnoloGy and innovation

a natural starting point for nypro in its pursuit to become as sustain-

able as possible has been to examine all points of the life cycle for

the products that we make — from concept development through

end-of-life. through front-end integration, our approach is to develop

solutions based on a full life-cycle and combine our extensive knowl-

edge in design, materials, manufacturing, tooling technologies and

end-of-life use with the capabilities of our strategic supply chain

partners. this enables us to develop products and solutions that are

truly sustainable in their manufacturing, performance and end-of-life

reclamation. looking to the future, our researchers are making

strides in processing bio-based plastics and coatings that contain

no petroleum, the raw material for most plastics today.

investinG in clean enerGy

electric injection molding machines use less electricity than their

hydraulic counterparts. while this might seem counter-intuitive, there

are a number of reasons for it. the primary reason is that electric

machines can be controlled to turn on only while they are actually in

use producing parts, while hydraulic machines must stay turned on

to keep the hydraulic oil viable. over the past ten years, nypro has

converted most of our machines in the size range under 300 tons of

clamping pressure to electric machines. now our Global supply chain

and packaging Group is working with machine suppliers to create an

all-electric 500-ton injection molding machine that will be optimized

for packaging production. this project’s success will allow the adop-

tion of efficient, sustainable electric machines throughout our fleet.

27

about tHis report

at nypro, sustainability is a long-term strategic approach to balanc-

ing business opportunities with social, economic and environmental

responsibilities. it is about making shared value work for ourselves,

our customers and our world. this report is the first of its kind for

nypro. we have tried to model it on some of the reports of our dis-

tinguished customers, recognizing that we are much smaller and

considerably less experienced at this type of reporting than they

are. the information in this report comes from reporting within

the company from departments involved in sustainability efforts. any

numbers provided are derived from the best available information,

but have not been subjected to the type of inscrutable auditing that

a reader would expect from our financial reporting. we intend for this

report to set a solid foundation in the tracking and accountability of

our sustainability performance. we will refine our progress reporting

and continue to improve upon our sustainability efforts as a company.

we recognize that we have much work ahead of us.

28

environmental impact estimates for savings pertaining to the use of post consumer recycled fiber are

based on the environmental defense fund paper calculator and research done by the paper task force,

a peer-reviewed study of the lifecycle environmental impacts of paper production and disposal.

calculations based on research by environmental defense fund and other members of the

paper task force.

® registered trademarks of neenah paper, inc.

neenaHpaper.com

Classic Crest® Papers

color: recycled 100 bright white

paper weight: 80 lbs. text

post consumer content: 100%

quantity: 325 sheets (12" x 18")

73 lbs. of wood, which is equivalent to <1 tree that supplies enough oxygen for <1 person annually.

107 gallons of water, which is enough water for 6 eight-minute showers.

6 lbs. of solid waste, which would fill <1 garbage can.

74,021 BTUs of energy, which is enough energy to power the average household for <1 day.

22 lbs. of emissions, which is the amount of carbon consumed by <1 tree seedling grown for 10 years.

with this sustainability report, nypro will save the following resources:

Classic Crest® Papers

color: recycled 100 bright white

paper weight: 100 lbs. cover

post consumer content: 100%

quantity: 75 sheets (12" x 18")

uses 100% certified renewable electricity

neenaH paper — environmental impact audit results

for more information, please contact

tHe nypro sustainability council

chair, senior director of corporate environmental, Health

and safety & sustainability kristine.lesso@nypro.com

supply chain rashid.shaikh@nypro.com

research & development mike.mcgee@nypro.com

Healthcare Group robert.gottlieb@nypro.com

consumer & electronics Group david.voorde@nypro.com

packaging Group nathan.stephenson@nypro.com

union street brand packaging andy.simon@nypro.com

Human resources schweta.karnik@nypro.com

communications al.cotton@nypro.com

radius product development ryan.hall@radiuspd.com

Nypro Inc. | 101 union street | clinton, ma 01510 | tel: 978.365.9721 | fax: 978.368.0236 | nypro.com