Environmental, Health & Safety Report 2007 : Tektronix

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ENVIRONMENTAL, HEALTH &SAFETY REPORT 2007

ContentsCONTENTS. IEHS PERFORMANCE. 4ENVIRONMENTAL INITIATIVES . 8PRODUCTS . 12HEALTH & SAFETY . 14This report generally contains data from 1998 through May 2007. It was published in October 2007.If you have any questions or comments regarding this report, contact:Ken SkinnerSenior Manager, Environmental, Health and SafetyTektronix, IncPO Box 500, M/S 55-115Beaverton, Oregon 97077 USA503-627-2667E-mail: kenneth.j.skinner@tektronix.comi

EH&S PolicyIt is Tektronix’ policy to conduct its business activities in amanner that protects and maintains the naturalenvironment, and that promotes and protects the healthand safety of its employees, customers, and members ofour local communities worldwide. We strive to integratesound environmental, health and safety programs andpractices into the organization to address the applicablelaws in the countries where we operate. Tektronix iscommitted to continuous improvement and usingdevelopment and manufacturing processes that do notadversely affect the environment, that minimize wasteand prevent pollution, and that minimize health and safetyrisks.Tektronix Environmental, Health & Safety Report, 20072

ISO-14001 Environmental Management SystemTektronixlauncheditsEnvironmentalManagement System program in 2001 in orderto provide a framework within which Tektronixcould ensure an ordered and consistentapproach to environmental concerns.Tektronix initiated its ISO-14001 program withseveral goals in mind:4 Ensuring that Tektronix is meetinginternal and external environmentalperformance expectations.4 Integrating environmentalconsiderations with businessoperations.4 Effectively implementing theenvironmental provisions ofTektronix’s EH&S policy.4 Improving environmentalperformance through continualimprovement.Tektronix achieved its first ISO-14001certification in January 2003 for its ained for our Japan, China and Maxtekfacilities. Our goal is to achieve ISO-14001certification at all of our manufacturingfacilities.S h iftin g th e C o st-R iskC urv eReduce RiskNo Impact on CostStatus QuoCostReduced Costand RiskReduce CostNo Impact on RiskR iskA properly implemented EMS should be able tosimultaneously lower the cost of environmentalcompliance and reduce the risk of noncompliance.Tektronix Environmental, Health & Safety Report, 20073Environmental AspectsThe high tech electronics industry is generallyconsidered to be a “clean industry”, andTektronix operations fall within that category.Nonetheless, in an effort to continually improveour operations, Tektronix identified five aspectsof its business as having the most potential toimpact the environment and established thoseaspects as priorities for our EMS for CY 07:1. Utility Consumption2. Solid Waste Generation/Disposal3. Product Design & Engineering4. Facilities Maintenance5. PurchasingISO-14000 Environmental Goals & ObjectivesTektronix has established goals and objectivesfor its significant environmental aspects. Someexamples are listed below:1. Reduced utility usage/generation rateas normalized to facility square footageand sales.2. Increased solid waste recycling rate to60%3. Identification and sourcing of alternativetechnologies and materials to meethazardous substance restrictions inglobal markets (RoHS).StatusCurrently, Tektronix is achieving our ISO14001 goals and objectives as demonstrated inthe following sections of this report (i.e., EHSPerformance).

EHS PerformanceSince 1995, Tektronix has reported on the company’s annual environmental, health andsafety performance to the audit committee of the Tektronix Board of Directors. With theimplementation of an Environmental Management System in the late 1990s and theconversion to ISO-14001 in 2001, Tektronix has been continually monitoring itsenvironmental performance in numerous areas using a variety of EHS metrics. Thefollowing are some of the key indicators we use to monitor and manage our EHSperformance.1CHEMICAL USE:The evolution of our manufacturing processes, combined with our continuing business modelrefinements, has resulted in significant reductions in the volume of chemicals, water and otherresources used by our manufacturing operations. We continue to look for opportunities toreduce chemical and other resource 0.0030.0020.0010Pounds4000300020001000TRI ChemicalRealeasesLbs/ K NetSalesTRI ChemicalReleasesTotal LbsFY07FY 06FY 05FY 04FY 03FY 02FY 01FY 000LBS/K Net SalesToxic Chemical Releases (TRI)YearChemical ay-02May-03May-04May-05May-06May-0710001Lbs per M Net Sales50001000000Chemical UseLbs/ M NetSalesChemicalUseTotal LbsUnless otherwise indicated metrics are specific to Tektronix’ Beaverton, Oregon facility.Tektronix Environmental, Health & Safety Report, 20074

UTILITY AND ENERGY USE:Tektronix recognizes the impacts its operations have on the global environment, and thepotential impacts of global climate change to all of us. We recognize that the biggest impactsour operations have on the global environment are related to our consumption of carbon basedenergy resources. Tektronix believes that the efficient use of energy is not only a soundenvironmental principle (reduced carbon and other emissions); it is good business practice,particularly given the volatility in the energy markets over the past few years. To that end, wehave active energy conservation programs in place to make our energy use as efficient aspossible. Some indicators of our commitment to energy conservation are:oBuilding lighting upgrades, chilled water efficiencies and air compressorupgrades have netted a reduction of over 400,000 kWh/year for the BeavertonCampus.oWe participate in an “interruptible supply” natural gas program that allows ourlocal utility to divert gas to high priority users (residential, commercial andindustrial) at times of low supply and high demand.oWe have been tracking total carbon emissions since 2002 and haveparticipated in the Carbon Disclosure Project, sponsored by a consortium ofinstitutional investors, for the past two years.While energy consumption is seasonally cyclical, we continue to see a downward trend inconsumption and related emissions:Total Air Emissions0.25TotalAir EmissionLbs20000000YearTektronix Environmental, Health & Safety Report, 20075NaturalGasUseTherms/Sq Nov-05Aug-06May-07May-07May-062002 2003 2004 2005 150001000050000Electric UseTotalKilowattHoursNatural Gas UseThermsCO2 Equivelant EmissionsGlobal Carbon EmissionsElectric UseKilowattHours/Sq .15Pounds15000Total AirEmissionsLbs/ K Net SaleskW-hr Per Sq Ft120000000.220000Therms Per Sq Ft14000000May-0025000PoundsElectric UseNaturalGasUseTotalTherms

SOLID & HAZARDOUS WASTE:Since the 1970s Tektronix has been recycling a significant percentage of its solid waste throughour Recycling and Materials Salvage operation. We teamed with Weyerhaeuser at ourRichardson, TX facility in 2007 to recycle paper and wood waste with the goals of increasing thevolume of general office waste recycled and to lower the cost of disposal for our remainingwaste material. Today, Tektronix has an average recycle rate of nearly 60% at its Beavertonfacility.As a result of toxic use reduction and waste minimization initiatives, combined with changes inour business model, we have seen dramatic reductions in hazardous waste production anddisposal. A significant achievement for Tektronix was reaching Small Quantity Generator Statusfor our Beaverton operations in 2006.Solid WasteTons310210110Solid WasteRecycled TonsSolid WasteDisposalTotal 02May-01Nov-99Aug-0010% Solid -04May-03May-01May-020.001May-001Lbs or per 1000 NetSalesHW Generated LbsHazardous Waste GenerationTektronix Environmental, Health & Safety Report, 20076HWDisposalLbs/ K NetSalesHWDisposal / K NetSalesHWDisposalTotal Lbs.

INJURY TRENDSTektronix is committed to the health and safety of our employees. This commitment has resultedin low incidence rates which have remained significantly below the national average in ourindustry for over a decade when compared to the Test & Measurement industry (NAICS334515).Tektronix goal is zero accidents. While we have yet to achieve that goal, Tektronix hasexperienced a downward trend for all recordable injury statistics for the past two years. Themost recent year is the lowest DART we have seen.Injury Case Rate/100 EmployeesTektronix USA vs. National Averages for Test & MeasurementIndustry1.81.6In c id e n c e R a te1.41.21Tektronix (CY06)National Averages (CY05)0.80.60.40.20TotalIncidenceCase RateLost andrestrictedcasesLost daycasesRestrictedcasesOtherRecordDays Away From WorkDays Away, Restricted, Transfer Case Incidence Rate (DART)21.81.61.41.2Tektronix1National average0.80.60.40.20Tek 2000 Tek 2001 Tek 2002 Tek 2003 Tek 2004 Tek 2005 Tek 2006Tektronix Environmental, Health & Safety Report, 20077

Environmental InitiativesEvery year Tektronix dedicates time andresources to company and community eventsthat reflect our commitment to theenvironment. Selected projects are presentedbelow.2006 Bike Commute ChallengeSOLV Great Spring Beach CleanupTektronix Beaverton is a participant in thePortland area Bicycle Transportation Alliance’sannual Bike Commute Challenge, in whichorganizations throughout the Portland, OregonMetro area challenge one another to commute bybike. In 2006 Tektronix was 4th in our category,with 124 riders traveling 12,800 miles.Every year Tektronix sponsors “a day at thebeach” as part the SOLV Great Oregon SpringBeach Cleanup (SOLV is a non-profitorganization that brings together governmentagencies, businesses and individual volunteersin programs and projects to enhance thelivability of Oregon.) In 2006, 225 Tektronixemployeesjoined5,245volunteerbeachcombers and picked up 46.5 tons oftrash from Oregon’s coastline.What started out as a sunny day in Portlandended in the rain and wind on the Coast. Buttrue to the spirit of Oregon and Tektronix, ouremployees endured the weather to ensure ourassigned beaches were cleaned and madesafe again for the wildlife that calls the coasthome.Tektronix Environmental, Health & Safety Report, 20078European Waste and Electrical andElectronic Equipment DirectiveTektronix has chosen Supply Chain Alliance astheir recycling agent within the European Union(“EU”) to address the new Waste and Electricaland Electronic Equipment Directive (“WEEE”)electronic regulations.The new regulationcommonly referred to as the product “Take-Backand Recycle” program requires manufacturers totake responsibility for the end-of-life recycling ofproducts they sell under their brand and to labelall affected products. The environment benefitsbecause the instruments Tektronix recycles areremoved from the general waste stream anddisposed of in an environmentally responsiblemanner.

Tektronix Receives ent Systemsstrong culture of environmental protection andstewardship. Tektronix leveraged its already welldeveloped quality management system withrequirements for EMS certification, saving timeand resources and creating an unusually maturesystem for initial certification.Energy ConservationTektronix, together with Washington GroupInternational as our facilities and maintenanceservice provider, has achieved significantaccomplishments in the area of energyconservation.Renewable Energy SourcesTektronix achieved another milestone inenvironmental protection in January 2006when it received certification to the ISO14001:2004internationalstandardforEnvironmental Management Systems (EMS).Previously certified to ISO-14001:1996 inJanuary 2003, the upgraded certificationdemonstrates accredited third-party verificationthat Tektronix meets the requirements of theinternationalenvironmentalmanagementsystem standard. It is granted to companiesthat have demonstrated commitment toenvironmental stewardship. Certification canhave economic benefits, from lower cost ofmaterials to increased regulatory flexibility toimproved investor relations.Achieving ISO-14001 certification is just onemore way that Tektronix continues todistinguish itself as a leader in the test andmeasurement industry.Receiving the ISO-14001 certification isrecognition of Tektronix' long history andTektronix Environmental, Health & Safety Report, 20079TektronixjoinedwiththeBonnevilleEnvironmental Foundation (BEF) as an activeparticipant in the Green Tag Program. The GreenTag Program allows power users to purchaseportions of their power from environmentallyfriendly energy sources. Each “green tag” isequivalent to 1000 kWh's of electricity generatedfrom a renewable resource; in Tektronix’s case,the power is generated from wind driven turbineslocated in Condon, Oregon. Tektronix purchased999 green tags in 2006 or about 2.2% of theBeaverton campus load.Formation of Energy and WaterConservation TeamIn 2006 Tektronix formed an energy and waterconservation team drawn from employees,vendors and tenants to collaborate on energy andwater saving ideas to reduce the environmentalimpact of utility consumption and minimize waterusage. The team brainstormed ideas, calculatedreturn on investment (ROI) criteria and

implemented projects with strong ROI.Tektronix expects significant savings andenvironmental improvements from some ofthese projects in the future.Feasibility Project for SmartIrrigation SystemsAnother project under review is to determinethe feasibility of using “smart” irrigationsystems to reduce irrigation water. In 2006,Tektronix replaced a time clock controlledirrigation system with a smart system whichcontrols irrigation based on real time measuredcriteria such as rainfall, temperature, andevaporation rate. Evaluations of the results ofthe investigation are pending.within the company. In the past three years, over560,000 pounds of material (metal-bearingmaterial, electronic scrap, and plastics) was soldto reclaimers and recyclers. Through the resale ofsurplus and obsolete items through the CompanyStore, e-Bay, and direct outside sales, RAMS hasgenerated nearly 1 million in revenue over thepast three years. In addition, over the past threeyears RAMS has saved Tektronix nearly 2.5million through redeployment of equipment withinthe company.RAMS has also donatedapproximately 600,000 in equipment tonumerous universities, elementary and secondaryschools and non-profit organizations.Beaverton Campus EnvironmentalAssessmentRecycling and Material SalvageTektronix has recycled a significant percentageof its solid waste through our Recycling andMaterials Salvage (RAMS) operation since the1970s.RAMS is a centralized organization atTektronix whose primary purpose is to findalternatives to landfill disposal of a variety ofsurplus materials, excess equipment and parts,and a multitude of generally discardeditems generated by the company.RAMS provides environmentally friendlyalternatives to the disposal of these surplusmaterials in landfills; e.g., recycling, metals andprecious metal reclaim, resale, and reuseTektronix Environmental, Health & Safety Report, 200710Since the mid 1980s, Tektronix has been workingin partnership with the Oregon Department ofEnvironmental Quality (DEQ), and the U.S.Environmental Protection Agency to identify andinvestigate areas of possible environmentalcontamination on the Beaverton campus. Inconnection with our continuing and cooperativeefforts, Tektronix and DEQ entered into anagreement to complete site-wide investigations atthe Beaverton campus.

Green Building AwardIn-situ Aerobic OxidationBacterial CellAerobic BacteriaMMOMMOCell hlorides.Anaerobic ionInjection. . CO2As part of this investigation, from 2004 through2005, Tektronix installed and ran a pilot projectusing an innovative gas injection remediationtechnology. Gas Injection wells were installedin an area of known VOC contamination ne (TCE) contamination in soiland groundwater using this new technology.Unfortunately, even though early analyticaldata collected showed a sharp decline incontaminants, it was ultimately concluded thatthe technology was only of limitedeffectiveness due to the nature of the soils atthe Beaverton facility.System ReboundMonitoring Well MW-19-41Gas Injection Shut Down10000Trichloroethene100TetrachloroetheneGas Injection Start-upMicrogram per neM a r-0 5S e p -0 5S e p -0 4M a r-0 4M a r-0 3S e p -0 3M a r-0 2S e p -0 2M a r-0 1S e p -0 1M a r-0 0S e p -0 01Tektronix continues to work cooperatively withthe DEQ to ensure the protection of theenvironment and the health and safety of ouremployees, guests, visitors, and neighbors.Tektronix Environmental, Health & Safety Report, 200711Pollution prevention and toxics control initiatives,combined with Tektronix’ continuing businessmodel refinements, have resulted in a reductionof the volume of chemicals used and wastegenerated by our operations. As a result,Tektronix closed its centralized waste treatmentplant and waste storage facilities in 2001.Tektronix demolished the remaining structures in2005. Recycling was a major objective from theonset of the project. As a result, 30,000 tons ofconcrete and brick were reused on-site inconstruction of an employee soccer field and theproject achieved a total material recovery rateexceeding 99%.Because of these outstanding recycling results,the project was awarded the Associated BuildersandContractors2006ExcellenceInConstruction Award in the Green DemolitionCategory.Chromium ConversionIn 2007, the Model Shop at the Beaverton Facilitymade the conversion from hexavalent chromiumto trivalent chromium for its chrome treatmentprocess. The conversion to trivalent chrome hasgreatly reduced the toxicity of the chrometreatment process.

ProductsTektronix has a policy that all of its productswill meet applicable regulatory standards andrequirements in all geographies where they aremarketed and sold. The testing and evaluationprocess to ensure this policy is met includes acomprehensive test plan / methodology andthird party certification where cceptable material alternative, and testing andreporting standards that will allow us to transitionour product designs to meet evolving regulatoryobligations. We will also provide customers withend-of-life product take-back and recyclingcapability wherever local law requires.Our commitment to the environment doesn’tend with meeting the minimum requirements;that is just the starting point.Waste Electrical and Electronic Equipment(WEEE) – Product RecyclingNew products receive applicable certificationbefore they are offered for sale. Certificationmay take the form of a company-declaration(e.g. CE mark), or it may be a third partycertification, registration, or license (e.g.Underwriters Laboratories registration, GOSTfor Russia, selected telecom registrations,RESY packaging marks, RBRC battery mark,Green Dot recycling mark, etc.).In support of our environmental goals, effectiveAugust 2005 Tektronix launched a formal productTake-Back and Recycle Program in Europe thatcomplies with the European Union Directive2002/96/EC on waste electrical and electronicequipment (“WEEE Directive”).International StandardsEuropean Union WEEEThis program provides self-service instructions forproduct take-back and recycling. Equipment thatis returned through this program will be handledin an environmentally safe manner usingprocesses that comply with the WEEE Directiverequirements.Earth Friendly PlasticsRecyclable PC PC-ABS EPE TektronixStatementDesignforEnvironmentTektronix has a strong commitment to meet itsenvironmental regulatory obligations. Our keyobjective is to ensure that our high standardsof product quality, reliability and safety aremaintained as we strive to reduce theenvironmental footprint of our products andprocesses.To achieve this objective, Tektronix is activelyengaged in a corporate wide initiative workingwith industry consortia to develop and defineTektronix Environmental, Health & Safety Report, 200712Since 1999, we have included ISO 11469 plasticidentification codes to molded plastic parts to aidin their recycling and use.Halogen FreeBrCl

As a result of the environmental concernssurrounding the casual disposal of plasticscontaining halogenated fire retardants, we useonly halogen free plastics that employ anenvironmentally benign phosphorous basedfire retardant.Battery RecyclingHeavy Metal ContentSignificant efforts have been undertaken tominimize or eliminate the amount of lead andcadmium present in Tektronix products.A major effort was recently completed thatresulted in the removal of nearly 95% of thecadmium containing components once used inTektronix products, with complete eliminationas the ultimate goal.A dedicated circuit board manufacturing line forfabrication of lead-free circuit boards has beeninstalled, and new and existing Tektronixproducts are being migrated to the moreenvironmentally sound process.Energy EfficiencyA program is in process to transition externalpower supplies utilized in new products andservice applications to more energy-efficient,Energy Star-compliant models. This changewill save our customers energy in both standby and operational mode. In one case theenergy efficiency in use mode was increasedby over 25% resulting in a 50% performanceimprovement.Tektronix Environmental, Health & Safety Report, 200713photo courtesy of RBRCTektronix has been a licensee to theRechargeable Battery Recycling Corporation(RBRC) battery collection system since 1999, toaid in the collection and recycling of nickelcadmium (NiCd) battery packs used to operateportable instruments. Since 2001, all newportable products have been designed s, to eliminate the environmental risksassociated with cadmium containing batteries.

Health & SafetyTektronix recognizes the importance of a safeand healthy work environment. We count on allemployees to make Tektronix a safe workplace. The commitment to a safe workplace isan integral part of doing business and iscommunicated annually to all employees in ourbusiness ethics and compliance program:“Responsibility for compliance withTektronix's Environmental Health & Safetyguidelines extends to all levels of employees atTektronix and its subsidiaries. Each Tektronixand subsidiary employee has a responsibilityto be aware of Environmental Health & Safetyguidelines and to use sound judgment.Tektronix recognizes the importance ofproviding a safe workplace and a workenvironment that minimizes health risks toemployees. Every employee has theresponsibility to communicate with areamanagement about possible unsafe orhazardous conditions in the workplace, as wellas accidents that result in injuries, illness, ordamage.”Tektronix Business Practices HandbookGlobal Occupational Health and SafetyManagement sdevelopedaglobalOccupational Health & Safety ManagementSystem (OHSMS) and supporting guidancedocuments. With the recent release of theGlobal Occupational Health and SafetyManagement System Policy, Tektronix ismoving ahead with a multi-year phase-in of theOHSMS.The OHSMS provides us with a systematicmanagement process for global OccupationalHealth & Safety (OHS) performance (much asISO-9000 does for Quality and ISO-14001does for Environmental). Tektronix chose tobe proactive and implement the OHSMS forTektronix Environmental, Health & Safety Report, 200714several reasons. First, the safety of ouremployees is of utmost importance. Tektronix iscommitted to providing a safe and healthyworkplace for all employees world-wide. TheOHSMS provides a standardized and formalsafety management system that results inincreased safety awareness and reduction inrisks. Second, it is becoming more and morecommon for our customers to evaluate our OHSperformance as part of their selection criteria. Inthis respect, having an OHSMS in place helps useffectively communicate our commitment tosafety as well as our outstanding safety record.OHSMS implementation is planned in phases,with the first phase targeting higher risk locationssuch as manufacturing locations and locationswith more than 150 employees. Other locationswill be added on a risk prioritizationbasis in subsequent phases.OH&S Risk AssessmentsIn steplocationsIdentifiedthroughsystems.with our global efforts, internationalwill undergo OH&S Risk Assessments.unacceptable risks will be managedthe corrective action managementOur PeopleTektronix recognizes employees make adifference. We ask employees to be engaged andstep up to the challenge of continuouslyimproving the work environment. The following isa partial representation of how some of ouremployees participate to improve work placesafety.Safety Committees consist of both managersand employees who are empowered to takeactions to resolve safety issues. Committees playa key role in identifying and correcting hazards.Working Teams or work groups consisting ofemployees, engineers and managers are formedto address safety, production or qualityimprovement issues. For example, a LeanManufacturing group identified foot and legfatigue as a potential problem. The work group

resolved the issue by installing anti-fatiguemats, sit/stand chairs and cushioning devicesfor shoes.Office ErgonomicsTraining & Education: To help our employeesreduce the risk of injury at work, employeesare required to attend relevant safety trainingand education to improve their knowledge inhazard recognition. More and more OH&Strainings are available on demand through ourintranet. Depending on the employee’s jobresponsibilities the training/education could bein one or more of the following:4444444Electrical SafetyEHS Awareness for New HiresChemical HazardsControlling Hazardous Energy SourcesLead Safety AwarenessPersonal Protective EquipmentBuilding Evacuation/EmergencyPreparedness4 Other Safety & Health topics associatedwith their job.Tektronix requires new office workstations andtask chairs be adjustable to facilitate employeecomfort and safety. In addition to providingemployees with information on proper workstationsetup, Tektronix offers various ergonomicaccessories and an opportunity to get advice fromour health and safety staff. Qualified ergonomicsevaluators are available to help employees withspecific needs.Manufacturing ErgonomicsHealth & Safety AuditsHealth & Safety audits are conducted routinelyto evaluate the effectiveness of the H&Sprograms. The reviews target higher-riskoperations and utilize a closed loop correctiveaction management systems.Chemical SafetyNew-to-Tektronix chemicals are reviewed bythe EH&S department utilizing an electronicchemical approval process. This processevaluates the toxicology and addresses safehandling, usage, storage, and disposalprecautions.ErgonomicsTektronix is progressive in helping to improveworking conditions and optimize performancethrough applied ergonomics. Based onworkplace surveys, 99% of our employeesbelieve ergonomics is a good investment.Tektronix Environmental, Health & Safety Report, 200715Ergonomic design is an integral part of themanufacturingengineeringprocess.New‘Tektronix Lean’ work stations have beendesigned to minimize waste and maximizeproductivity and feature adjustable workbenchesand tools to reduce risk factors associated withrepetitive injuries.

4 Integrating environmental considerations with business operations. 4 Effectively implementing the environmental provisions of Tektronix’s EH&S policy. 4 Improving environmental performance through continual improvement. Tektronix achieved its first ISO-14001 certification in

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