Let’s change for good. Our ongoing commitment to providing quality print solutions that don’t cost the Earth. Sustainability Report 2009/10 Deforestation can’t go on foreve Using print means using paper, and us using trees. At EarthColor, we recogni to the environment and have made po significantly minimize negative impac This report documents our continuing excellent print solutions that don’t cos er. sing paper means ize our responsibility ositive decisions that ct on the environment. g efforts in providing st the Earth. We keep the environment in mind with every decision we make. Sustainable printing may sound like an oxymoron, but that is far from the truth. As a manufacturer of large quantities of printed products, our choices and decisions as well as those of our clients during the procurement, production, manufacturing and finishing processes can and do make a difference. For example, over the course of 2009-2010 these efforts translated to the equivalent of 465 acres preserved via managed forestry. For EarthColor, sustainability is broader than just the environment, extending into other spheres far beyond our borders, such as economics and social responsibility. It is clear that our industry is commercially and financially reliant on the continued abundance of paper, yet we also fully comprehend that trees and forests are vital to the existence of life on Earth. Protecting our natural resources and preserving them for future generations is a necessity, not a luxury or a trend. Sustainability and resource management are global problems, and the print communications industry is just as accountable as anyone else for doing the right thing. EarthColor is committed to our shared environment and dedicated to striving towards a cleaner, healthier, better tomorrow. We hope that you will join us. In the pages that follow, we outline our achievements, successes, challenges and any shortcomings over the course of 2009 and 2010. We analyze where we are, what we should be doing and how we will get there. Above all, we aim to emphasize the important role that each individual plays in making sustainability a reality and encouraging positive change. What's inside: Introduction6 Mission & commitment 8 Sustainability efforts, initiatives & strategies 9 Performance10 Performance highlights 10 2010/11 goals and targets 12 The EarthColor sustainability ecosystem 14 Governance and ethics 16 Responsible forestry 18 Environmental protection 22 Resource stewardship and energy management 26 Workplace enrichment 32 Beyond our borders 34 GRI context index 36 The Earth.Aware calculator 38 A message from our Chief Executive Officer Today we live in a society that has greater vigilance and awareness of the impact we as humans have on our environment. When we reflected on our business and our industry we found ourselves strategically positioned in the communications supply chain for both print and digital formats. We recognized early on that we could work with our clients and supply chain partners to profoundly change for the better the way we do business and the overall environmental impact and footprint that we left behind for future generations. When it came down to tough decisions where it was not a clear win win, we have been guided by this simple thought: Let’s ‘Do the Right Thing’ for our environment, for our children, and for our shareholders and investors. At EarthColor, we recognize our obligation to ensure the prudent and rational utilization of natural resources and to protect those entrusted to our stewardship. That is why sustainability embodies one of the core values which underpin our company. Robert Kashan “We are guided by this simple thought: Let’s ‘Do the Right Thing’ for our environment, for our children, and for our shareholders and investors.” A message from our Director of Sustainability In line with our vision for the company, we have been diligently working to weave sustainability into the fabric of our organization and supply chains. The printing industry is an important part of the world’s manufacturing community, playing a vital role in communication, education and daily life. Interestingly enough, despite the widespread implementation of electronics and digital media, our society is far from ‘paperless’ with demand and consumption increasing in proportion to G.D.P. per capita. EarthColor’s core values include a genuine dedication to responsible business practices. With sustainability at the forefront of the company’s agenda, we believe that all business should be conducted with consideration and respect for the environment and our natural resources. To this end, we have implemented comprehensive sustainability initiatives, which encompass every stage of our manufacturing process — effectively reducing the environmental footprint of our end products and providing our customers with high-quality printed materials that are more environmentally friendly all while meeting and exceeding our clients’ expectations. Our work is certainly not over and we continue to voluntarily develop, implement and maintain green principles, striving to be a standard setter within the print communications industry. David Podmayersky Introduction EarthColor is a privately held commercial printer headquartered in New Jersey with facilities in New York, Florida, Texas and Arizona. We have been in business for over twenty-five years and specialize in providing one-stop printing solutions of electronic prepress, printing and finishing, primarily of promotional products. Through the years we have worked hard to incorporate sustainable practices and strategies into our manufacturing and logistical processes, transforming our business from the inside out. Our sustainability efforts have manifested into one of our major strengths: managing and producing high-quality, complex, demanding print projects which meet the best possible sustainable solutions at a cost-effective price. “I look at things in the absolute. We don’t just want to reduce harm to the environment in the future; we want to know how to improve immediately.” — Robert Kashan, CEO. We acknowledge that alongside our achievements and successes, there are also shortcomings and obstacles to overcome, but real change in our industry is possible and we are proud to be a part of that change. We have made it our business to make sustainability issues a priority. This dedication and our overall business culture of leading by example has positioned us as an industry leader in the United States for sustainable print solutions. five firsts We’re proud to be considered leaders in our industry and are constantly looking for ways to improve environmental standards in both our company and in the print industry as a whole. Here are some positive changes we have made that also happen to have been firsts for the print industry: 1 First in our industry to release a sustainability report detailing our efforts, results and targets We published our first sustainability report in 2004 ‒ and we’ve done so ever since. Read more about our Earth.Aware calculator on page 38, or try it out for yourself at earthcolor.com 2 First to offer a carbon-managed web paper stock, our very own brand: Earth.Aware® 3 First to adopt technological innovations for carbon sequestration and bio-oxidation 4 First to launch a calculator detailing the environmental savings impact for the entire print supply chain 5 First to systematically apply the Twelve Principles of Green Chemistry in our facilities and processes Sustainability Report 2009/10 7 Mission and commitments EarthColor’s core mission and values include a genuine dedication to sustainable and responsible business practices. We’re committed to minimizing our environmental impact and promoting sustainable printing and responsible forestry for our company, our industry and the community at large. » Protect the Earth’s natural resources » Promote forest conservation » Fight for clean air and water » Support biodiversity » Sponsor sustainable development and poverty-alleviation Our mission is to lead the print communications industry towards a more sustainable future. That includes achieving carbon-managed and climate-balanced printing through the development of innovative technology and implementation of thorough environmentally sustainable and socially responsible business practices and standards. EarthColor is committed to people, planet, and performance. 8 EarthColor | Let’s change for good. Sustainability efforts, initiatives and strategies Actions speak louder than words. We’ve proactively transformed EarthColor to become a leader in sustainability within the print communications industry, setting a new standard for printers, our suppliers and our customers — and for ourselves. These are just some of our achievements to date which are explained in more detail in the following pages. We’re proud of our successes so far and are constantly thinking of ways to improve further in the future. » Greenhouse gas management plan » Tri-certified in international forestry standards including FSC®, SFI and PEFC » Renewable energy management plan » Comprehensive wood pulp & paper merchandise management policy » Earth.Aware® paper — the first carbon-managed web paper on the market » Successful employment of green chemistry principles » 98% of manufacturing waste is recycled » Zero stormwater exposure to industrial materials policy » State-of-the-art technology innovation for on-site real-time greenhouse gas sequestration » Minimized airborne emissions » Partnered with leading NGOs supporting forest conservation, sustainable development and poverty-alleviation Sustainability Report 2009/10 9 Performance highlights During the course of the last year we have built on our past achievements and addressed shortcomings from 2008. Our environmentally sustainable values continue to permeate every aspect of our business. 465 acres preserved via managed forestry — an increase of 460% from 2008 -4,346 3 tons of greenhouse gas 7 offset — the equivalent of taking 4,346 cars off the road for a year Water use by more than 3 million gallons, a savings of 32% 98.6% Liquid and semi-solid waste production by more than half reduction in volatile organic compounds at web plants and 75% at all sheetfed plants 204,346 This year we have also reduced: million BTUs 293,209 less energy used, the equivalent of powering 2,245 homes for a year via pre— and post–consumer recycling less trees consumed Total energy use by 4.5% Consumption of natural gas by 11% Total greenhouse gas emissions by 2,700 metric tons awards 2009: Gold in American Printer’s Environmental Excellence Award for Most Environmentally Conscious Printer Gold in American Printer’s Environmental Excellence Award for Best Environmentally Produced Product Environmental Protection Agency’s Award for Green Power Purchasing Leadership 2010: WhatTheyThink Environmental Innovation Award for Thought Leader In 2009 we also launched our innovative Earth.Aware calculator which computes the real environmental savings for a specific print job when choosing to print with EarthColor. Read more about our Earth.Aware calculator on page 38, or try it out for yourself at www.earthcolor.com Sustainability Report 2009/10 11 2010/11 goals and targets We take pride in our achievements to date, while recognizing that we still have a long way to go with many obstacles ahead of us. These challenges present a unique opportunity for improvement, moving us a step closer to where we want to be. One of our biggest goals in 2010 and 2011 is to further expand our corporate social responsibility arm. Our primary focus thus far has been on our environmental sustainability initiatives and programs, which we now feel have very solid foundations allowing us to branch out further. We endeavor to be a conscious corporate citizen understanding that our decisions and actions have an impact on not only our employees but also on communities well beyond our borders. We are looking to ensure that impact is a positive one. In addition to expanding our support of initiatives and programs that strive to curtail world deforestation, we are also exploring possibilities for the promotion of environmental sustainability through public awareness as well as the meaningful involvement of our senior management in community and social initiatives. 12 EarthColor | Let’s change for good. Other targets for 2010 and 2011 include working harder to minimize our environmental impact. Where there is a will, there is a way, and we aim to do this by further decreasing our emissions, water consumption, and energy usage, while increasing and upping our waste management and recycling programs. We also aspire to expand our employeeoriented sustainability initiatives to really engage our staff with the intent of building greater momentum for green projects within our facilities. 5 % That’s our goal for the coming year. We hope to reduce consumption and emissions of the following by at least 5% and we look forward to keeping you informed of our progress in next year’s sustainability report. Reduce energy use by at least 5% Reduce total water use by at least 5% Reduce natural gas use by at least 5% Reduce total greenhouse gas emissions by at least 5% Reduce volatile organic compound emissions from sheetfed and web presses by 5% Reduce liquid and semi-solid waste by at least 5% Sustainability Report 2009/10 13 The EarthColor sustainability ecosystem Sustainability is a baseline requirement in all our operations at EarthColor. Our sustainability initiatives and programs are composed of six pillars which permeate every aspect of our operations — a structure that has become the blueprint of our business. Positive decisions for a positive impact Transparency 40% by revenue $ We have proactively quantified and publicly reported the impact of our environmental strategies since 2004. Our public declaration to reduce carbon emissions by 2012. 460% increase 40% of our workforce is from minority groups and 30% of our senior management are women. A huge increase from 2008 in the amount of land we have preserved via managed forestry — a total of 465 acres. 4.5% decrease Our energy saving programs have reduced total energy usage by 4.5% in 2009. Diversity Education We actively educate clients and vendors on how to utilize sustainable strategies ‒ this is our responsibility as a driver of sustainable change. six pillars Governance and ethics We have worked hard to gain credibility and a good reputation within the print communications industry. That is why good governance, ethics and active engagement underpin not only our sustainability policies and initiatives, but also our entire business. Responsible forestry Realizing that our business and industry is heavily reliant upon one of the world’s most important natural resources — trees — we are committed to supporting and promoting responsible forest management. Environmental protection We aim to be the print communications’ industry leader in environmental sustainability and climate protection. We are committed to growing our business while making a positive difference for the environment and the communities in which we operate. Resource stewardship & energy management Natural resources are finite and to this end we are continuously striving to reduce consumption, seeking environmentally friendly and sustainable material sources, efficiently managing and reducing our energy use, and embracing renewable energy sources. Workplace enrichment We foster a diverse yet inclusive work environment which inspires creativity and innovation, adds value to our business, drives our growth and provides professional development opportunities for our employees. Beyond our borders Our choices and decisions have an impact well beyond our borders and we are committed to not only minimizing negative impact but also working with our partners and clients to inspire and motivate positive change that benefits all. Sustainability Report 2009/10 15 Governance and ethics Responsible business conduct requires accountability, honesty and integrity in all matters. Open and honest dialogue with our stakeholders, partners, clients and employees has been instrumental in driving the success of our environmental programs — we are ready to advance that conversation further. Accountability EarthColor’s CEO Robert Kashan has been constructive in the realization of the company’s numerous sustainability programs and initiatives. Our Corporate Social Responsibility Policy is implemented and overseen by the Sustainability Department in conjunction with the Human Resources Department and the Environmental Engineering and Compliance Department. Our Director of Sustainability coordinates and manages all aspects of the company’s sustainability efforts, programs, initiatives and policies in collaboration with senior management across the company. All company directors and managers are responsible for integrating our environmental and social responsibility compliance policies through day-to-day operations and decision making. 16 EarthColor | Let’s change for good. Going a step further, we have made compliance to our environmental and social responsibility policies and procedures a condition of employment. Staff are trained and directed to perform their functions in a way that protects the environment and encouraged to contribute to the early identification and solution of environmental problems. We also encourage our employees to become proactively engaged in our environmental sustainability programs and readily welcome any new ideas. The bottom line: sustainability is an integral part of our business, company values, governance, vision and performance. It’s simply the way we operate — from the top down and the bottom up. Transparency Transparency is an essential part of our commitment to environmental sustainability and social responsibility. Along every step of the way, we have voluntarily opened our doors to publicly transparent reporting, regulation and auditing of our facilities and environmental strategies to ensure accountability and effectiveness. We proactively quantify the impact of our environmental strategies for every calendar year (from January to December) utilizing the Global Reporting Initiative (GRI) Standards. The indicators that we currently report on are outlined in the GRI context index found on pages 36 and 37. The results are reported annually mid-year from our corporate headquarters in the form of our sustainability report. In addition, EarthColor’s environmental strategies are comprehensively peer-reviewed by a collaborative panel of top industry experts and scientists on a regular and on-going basis to ensure their effectiveness and efficiency. Moreover, we employ third party compliance management consultants to further regulate and monitor our adherence to all federal and state standards. Any and all corrective actions and/or recommendations are actively addressed and enforced by EarthColor in a continuous effort to strive towards the realization of sustainable printing. We have voluntarily opened our doors to publicly transparent reporting, regulation and auditing of our facilities and environmental strategies to ensure accountability and effectiveness. Sustainability Report 2009/10 17 Responsible forestry It is no doubt that the print communications industry is heavily reliant upon one of the world’s key natural resources — trees. At EarthColor, we understand the effect our industry has on the environment and are constantly making decisions that actively support responsible practices. Sustainable sourcing EarthColor has a comprehensive Wood Pulp & Paper Merchandise Management Policy which is implemented throughout the entire company as part of our commitment to the environment and responsible forest management. The purpose of the policy is to ensure that any paper, pulp or fiber from controversial sources, specifically from illegal logging, does not enter into any of our facilities. All of our procurement practices adhere to this policy. To this end, any and all vendors are required to undergo a complete vetting process prior to the establishment of a working relationship. In addition, all vendors are required at a minimum to be completely compliant with the Lacey Act and are obliged to sign a contract of compliance to our terms and conditions as outlined in our policy. No working relationships are undertaken with any vendors that are considered high-risk nationally or internationally. 18 EarthColor | Let’s change for good. As a company, we are genuinely committed to responsible forest management and are proud to be tri-certified in national and international responsible forestry standards, namely, Forest Stewardship Council (FSC), Sustainable Forest Initiative (SFI), and Programme for the Endorsement of Forest Certification Schemes (PEFC). We take our forestry certifications very seriously and ensure that full compliance to the standards to which we subscribe is followed throughout all of our facilities. This is also verified through annual audits by our certification bodies. 0 % Paper, pulp or fiber from dubious origins such as illegal logging. As trees are a primary resource for our industry, it was an obvious decision to make it a policy that all paper, pulp and fiber entering our facilities come from noncontroversial sources. No working relationships are undertaken with any vendors that are considered high-risk nationally or internationally. PEFC/29-31-22 Promoting Sustainable Forest Management www.pefc.org The FSC is a global organization that sets standards for guiding and coordinating the development of responsible forest management throughout the various biogeographic regions of the world. The FSC’s principles and criteria span economic, social, and environmental concerns, and its measures are implemented through “chain-of-custody” certification. SFI is a globally recognized organization dedicated to promoting responsible forest management as well as sustainable environmental, social and economic interests. The organization’s forest certification standard is not only based on principles that support forest conservation but also includes measures to protect water quality, biodiversity and wildlife habitats. The PEFC Council is a global non-profit organization promoting responsibly managed forests through independent third-party certification. The PEFC is the world’s largest certification system, accounting for more than 200 million hectares of certified forests producing millions of tons of certified timber for the market place. Paper purchased in 2009 Total paper purchased 49,787 tons of which FSC-certified 23,143 tons In 2009, we purchased 23,143 tons of FSC-certified paper. To put that into perspective, nearly half of the total paper we purchased was certified, helping us to preserve 465 acres — an increase of 460 percent from 2008. Sustainability Report 2009/10 19 Responsible forestry Earth.Aware ® Launched in 2007, our Earth.Aware carbon-managed paper stock offers clients a more socially responsible and environmentally sustainable alternative. The key idea behind the initiative was to offer a greener printing package that encompassed the entire print supply chain. Considerable time and effort was devoted to the composition of Earth.Aware in order to reduce its carbon footprint. We analyzed the material sources used to produce the paper, examined the entire supply chain from production to transport to logistics and trimmed down on carbon emissions wherever possible, such as choosing rail over freight. We also looked internally and evaluated our own production and manufacturing processes to see where we could make improvements. The end result was a greener paper line that met high environmental standards. Our Earth.Aware paper is: »» Forest Stewardship Council chain-of-custody certified »» Elementally chlorine free »» Manufactured using a minimum of 10% post-consumer waste »» Carbon-managed and climate-balanced. But we haven’t stopped there — where emissions cannot be eliminated from our Earth.Aware paper line, we proactively purchase carbon offsets that support Conservation International’s Makira Forest Initiative in Madagascar. We chose Madagascar because it is a biodiversity hotspot with critically endangered animal species, such as the Madagascar Serpent Eagle and Silky Sifaka, a lemur known for its rattling calls to warn of aerial predators. The Forest Initiative works on the ground to promote forest conservation, afforestation, preservation of critical habitats for threatened species, and protection of biodiversity. The project also focuses on local communities providing education and training for sustainable agricultural practices and effective resource management. 2009 saw further evolution of our Earth.Aware program with the launch of our innovative Earth.Aware calculator, which utilizes patent-pending algorithms to calculate the real environmental savings impact for the entire print supply chain. This means we can demonstrate to clients through tangible results that by choosing to print with EarthColor they are proactively making a positive impact. Read more about our Earth.Aware calculator on page 38, or try it out for yourself at earthcolor.com. 20 EarthColor | Let’s change for good. 12,547 tons of carbon offsets purchased by EarthColor in 2009 supported Conservation International’s Makira Forest Initiative in Madagascar. Since its inception, our Earth.Aware program has been well received by many of our clients and in 2009 we purchased 12,547 tons of carbon offsets, the equivalent of taking 2,281 cars off the road for a year. We are looking to expand our Earth.Aware program in 2010 and 2011 to include more forest conservation projects. We are currently in the process of adding domestic carbon offsetting options and we hope that support for our initiative will continue to grow amongst our clients. EarthColor is a staunch advocate of the emerging REDD+ framework a suite of policies and programs aiming to provide incentives to developing countries for preventing and reversing the destruction of their forests. Deforestation is a major problem in the developing world and is also the largest source of global carbon emissions — accounting for up to 25 percent of global greenhouse gases. Stopping deforestation and promoting responsible forest management is a key global challenge. Sustainability Report 2009/10 21 Environmental protection EarthColor is staunchly committed to environmentally sustainable and socially responsible business practices. Our manufacturing efforts are geared towards protecting human health and we are actively involved in reducing our impact on the air, soil and water. Responsible product design We are an active leader in promoting the use of “sustainable design” concepts, endorsing the use of single composite products that are easily recyclable. Putting words into action, we have implemented a number of ongoing programs to measure, minimize and reduce the environmental impact of our operations. Our company employs a comprehensive umbrella program called DEPCOR (Design, Engineer, Procure, Consume, and Recycle) providing structure for integrating sustainable design, engineering, procurement, consumption and recycling. The key idea behind this program is to evaluate the life cycle assessment of products and materials that we use and produce — sort of the cradle-to-grave concept. In other words, everything is geared to drive efficiency and sustainability throughout our entire business. Our manufacturing process entails the successful employment of a Green Chemistry Principles Program, through which EarthColor embraces state-of-the-art environmental technology opting for lean manufacturing that serves to: »» Reduce waste and emissions »» Design safer chemicals and products »» Design less hazardous chemical syntheses »» Use renewable feedstocks »» Use catalyst, not stoichiometric reagents »» Avoid chemical derivatives »» Maximize atom economy »» Use safer solvents and reaction conditions »» Increase energy efficiency »» Analyze in real-time to prevent pollution 22 EarthColor | Let’s change for good. EarthColor uses on-site distillation to clean and reuse prewash, which is reducing chemistry consumption by 88 percent in the plants where is it is currently deployed. We also utilize fountain solution filtration systems which are reducing chemical consumption by 80 percent on the presses in which they are presently installed. EarthColor is also making an environmentally friendly impact with our recent installations of state-of-the-art digital presses in both our New Jersey and Texas digital facilities: the dry inks used are non-toxic and have a transfer efficiency rate approaching 100 percent; their operation creates little waste emits 80 percent less noise than a conventional offset press and neither generates nor uses hazardous materials. Our environmentally sustainable strategies extend all the way down to our inks and coatings, which is why we offer a wide array of environmentally friendly ink options and aqueous-based coatings. Our facilities have the capability to print with zero volatile organic compound (VOC) and biobased inks, which are primarily composed of vegetable oils, resin and rosins. We also offer soy-based inks and EarthColor has a Soy Ink Association certification which certifies that the soy inks which we carry are at minimum 30 percent soybased. Managing our carbon footprint EarthColor is dedicated to minimizing our environmental impact and promoting sustainable printing and forestry for our company, our industry and the community at large. We act to ensure all steps are taken to preserve, protect and improve the quality of the environment. We are committed to being a leader in our industry and work to control and reduce the production of greenhouse gases from our operations and products. To this end, we are a member of the Environmental Protection Agency’s Climate Leaders Program and have made a public declaration of our goal to reduce carbon emissions by 40% by revenue dollar by 2012. In collaboration with top engineers and scientists, we have implemented innovative bio-oxidizers and prototype carbon sequestration devices in our printing press rooms which effectively capture and reduce our emissions through applied bio-physics. In essence, VOCs and carbon emissions are captured as they are emitted and broken down organically by enzymes and natural bacteria into nonhazardous solids. Printing is a carbon-intensive manufacturing process, yet through the embracement and adoption of state-of-the-art technology we are managing and reducing the volatile organic compounds (VOCs) and greenhouse gas emissions resulting from our operations. Sustainability Report 2009/10 23 Environmental protection VOC emissions (Sheetfed press) Recorded emissions Actual emissions In addition to effectively reducing our emissions, a key benefit of this technology is that it has rendered our pressrooms odor-free and non-hazardous, creating a company-wide environment that is conducive to a healthy work atmosphere. Indeed, if you walked into any of our facilities you would not feel as if you were in a commercial printing plant — the air inside is clean and free of odors. VOC emissions (Web press) Recorded emissions Actual emissions 75% 98.6% 2008 totals 24 2009 totals EarthColor | 2010 goals Let’s change for good. 2008 totals metric tons metric tons 2009 totals 0.49 33.47 metric tons 35.23 metric tons decrease through thermal-oxidation 35.27 metric tons 7.18 metric tons 11.98 metric tons 27.3 metric tons 28.74 47.94 metric tons decrease through bio-oxidation 2010 goals metric tons In 2009, EarthColor produced 18,600 tons of greenhouse gases resulting from energy use, transportation, refrigeration, thermal oxidation, as well as mobile, stationary and indirect sources. However, our emissions were reduced by 22,450 tons through the purchase of renewable energy. In addition, carbon offsets totaling 4,552 tons were also purchased. Taken together, our carbon footprint was effectively minimized. In 2010, EarthColor aims to reduce its total greenhouse gas emissions by 5 percent. In 2009, VOC emissions produced by EarthColor’s sheetfed presses were recorded as totaling 28.74 tons, while web presses produced a total of 32.23 tons. Yet through an innovative process of bio-oxidation, VOC emissions resulting from sheetfed presses were reduced by 75 percent, actually totaling 7.18 tons. Also, a process of thermal oxidation applied at web press facilities resulted in reducing VOC emissions by 98.6 percent, totaling less than a ton. In 2010, EarthColor’s goal is to reduce VOC emissions resulting from our sheetfed and web presses by 5 percent. 0.49 Our on-site employment of this technology has been completely voluntary and EarthColor is presently hosting the technology development of these apparatus. This innovative technology really works and has effectively increased the remediation of airborne emissions and pollutants in our facilities. Bio-oxidizers capture and consume airborne volatile organic compounds (VOCs) and particulates in an EarthColor pressroom. As an additional safety precaution, all of our facilities administer a Periodic Monitoring System, a state approved PC-based system that constantly monitors airborne emissions to ensure they are within compliance of federal and state requirements. Should non-compliance occur, the system is programmed to automatically shut down. EarthColor realizes that zero (actual) carbon printing — although a major goal for our company — is seemingly beyond the grasp of our industry at the moment. Yet this reality does not discourage our efforts in the least. As previously mentioned, all airborne emissions are precisely monitored and where they cannot be eliminated, we proactively purchase carbon offsets supporting Conversation International’s Makira Project in Madagascar, which combines a multifaceted and multidisciplinary approach to forest conservation and natural resource management centered on community-integrated sustainable development and poverty alleviation. Greenhouse gas emissions & offsets CO2 Emissions from energy and transport 2008 totals 2009 totals CO2 reduction via renewable energy metric tons 4,552 metric tons 4,376 metric tons 22,450 metric tons 21,773 metric tons 17,670 metric tons Offsets 18,600 21,363 metric tons Emissions We are really excited about the success thus far of this innovative technology and are currently working with the State of New Jersey on an emerging technology permit to get both state and federal government to understand and recognize bio-oxidation as an effective tool for the remediation of airborne pollutants. If you walked into any of our facilities you would not feel as if you were in a commercial printing plant — the air inside is clean and free of odors. CO2 offsets purchased 2010 goals Sustainability Report 2009/10 25 Resource stewardship and energy management Reduce, reuse, recycle has become something of a mantra to us. But we don’t stop there ‒ we actively seek out environmentally friendly and sustainable material sources and embrace renewable energy sources such as wind, solar and biomass. Water conservation Water is an important aspect of our manufacturing process. It is also a vital natural resource which sustains all life on Earth. Increased demand driven by a growing global population – coupled with climatic changes, such as spreading desertification – is straining supply, making water ever scarcer. We understand our responsibility to minimize our water use and reduce our impact. We are committed to responsibly managing water use in our direct operations and are continually striving to drive improvements and efficiency to reduce our consumption of water. All of our facilities source water locally from the town water system and adhere to strict water quality standards. A significant portion of our water usage is for the purposes of our manufacturing processes. Our goal as a responsible corporate citizen is to ensure not only that we reduce our water usage, but also to make certain that our wastewater meets or exceeds applicable laws and regulations before being returned to the environment. 32% reduction Total water savings across all our operations, a total amount of over three million gallons. We aim to continue this trend in 2010. 26 EarthColor | Let’s change for good. We have taken a number of steps to improve water stewardship as a company, some key examples being: »» Installation of water-reducing fixtures and technology, including motion-activated faucets and toilets during recent renovation of our headquarters »» Implementation of an effective water filtration system that provides clean drinking water for our employees — a more sustainable alternative to the traditional office water cooler »» Replacement of water coolers used to cool down our print presses – which ran 24 hours and used thousands of gallons of water – with air coolers. Looking at our Earth.Thebault facility in particular, this change amounted to a total savings of 4,844,500 gallons in just one year. These changes and improvements have resulted in tangible savings — over the course of 2009, we have reduced our water use by more than three million gallons, a savings of 32 percent from the previous year. There is still plenty of room for improvement and there are additional steps we are exploring as a company to further increase our water efficiency. These include: new technological innovation which would replace remaining water-dependent manufacturing equipment; the reuse and recycling of our own wastewater for utility purposes within our facilities; and the capture and reuse of rainwater. We hope to move forward on at least one of above-mentioned initiatives in the coming year and reduce our water usage in 2010 and 2011 by at least 5 percent. Total water consumption 4,844,500 less gallons 2009 water savings in our Earth.Thebault facility thanks to replacing print press water coolers with air coolers. Gallons of water 15m 10m 5m 0 2008 2009 Sustainability Report 2009/10 2010 goal 27 Resource stewardship and energy management Waste management program EarthColor implements comprehensive waste management and recycling programs within all our facilities through which we effectively reduce and recycle materials used during our production and manufacturing processes. As a result of our efforts, approximately 98 percent of all our manufacturing waste is recycled including paper, liquids, semi-solids, aluminum plates, wood pallets, and end-of-life computer components. In 2009, we recycled 98 percent of paper waste from our sheetfed and web presses, totaling 14,285 tons. Our paper waste recycling efforts saved: 242,844 mature trees, 6,613,941 gallons of oil, 342,837 gallons of gasoline, 58,568,377 KwH of electricity, and 49,997 cubic yards of landfill space. We aim to continue our waste recycling program in the coming year with the goal of reaching 99 percent. EarthColor produced 548 tons of liquid and semi-solid waste in 2009 — less than half of the amount produced in 2008 — 97.5 percent of which was recycled. We incurred no significant spills and no monetary fines for environmental offenses. In 2010, our goal is to reduce our liquid and semi-solid waste production by at least 5 percent, of which we aim to recycle 99 percent. We recycled 46 tons of aluminum plates – or 99.75 percent – in 2009. Out of the 67,398 wood pallets purchased, 65 percent were made of recycled material, while 35 percent were internally recycled. In addition, we recycled 99 percent of all end-of-life computer components. 28 EarthColor | Let’s change for good. Liquid & semi-solid waste recycling 2008 97.5% 99% 2009 2010 1209 tons 1185 tons 548 tons 534 tons Amount of waste produced goal 529 tons 521 tons Amount of waste recycled Sheetfed and web paper waste recycling 98% recycled Thereby saving: 242,844 mature trees 49,997 cubic yards of landfill space In 2009 EarthColor recycled 14,285 tons of paper waste from sheetfed and web presses– that’s 98% of total waste. But we’re not stopping there and aim to hit 99% in 2010. 2009 manufacturing waste recycling 99.75% recycled: Aluminum plates totalling 46 tons. 100% recycled: End of life computer components Recycling, reducing, reusing efforts Although a significant portion of our waste creation is a by-product of our manufacturing processes, our waste management and recycling programs also extend into our production and administrative end. We believe that reducing and recycling waste is a key business principle — not only it is environmentally and socially responsible, it is a smart way to foster efficiency and reduce costs. Our waste management and recycling programs vary from facility to facility, yet the main aim of all these programs is to encourage and promote waste reduction and recycling through simple everyday choices. Programs are driven by awareness campaigns that intend to educate our employees and promote recycling of such things as office paper, food and beverage containers, cardboard, office equipment and batteries. Our aim is to increase awareness and change behaviors into positive action not only within our facilities, but also beyond our borders. Notable examples of our waste reduction and recycling efforts include: »» At our Earth.Thebault facility, which is also our headquarters, we purchase and use recycled toiletries, specifically toilet paper made from 100% recycled content, which adds up to a lot of pounds of paper over the course of a year. We also raise awareness among our clients through the provision of highly visible and colorful recycling bins in our client rooms. »» At our Earth.Digital facility, we have implemented an innovative waste-to-energy process through which waste resulting from the refreshment service, such as used Flavia, Keurig and Lavazza packets, is combusted at a high temperature creating steam that turns turbines to generate electricity. This is then fed into the grid and used to power homes. One of the key aspects of our awareness campaign is focused on encouraging the use of reusable drinking cups, mugs, canteens and utensils by our employees. However, due to the high volume of clients, merchants, vendors, and visitors that come through our offices and facilities, we continue to provide paper and plastic cups and utensils for refreshment purposes. We realize that over the course of a year this adds up to a large amount of waste and we are exploring more sustainable options. Sustainability Report 2009/10 29 Resource stewardship and energy management Improving energy efficiency Case study Our waste reduction and recycling efforts have been mainly company-focused as once the materials we produce leave our facilities we relinquish control over their use and eventual disposal. The unfortunate reality is that a large portion of these materials most likely end up in landfills. So when one of our clients, a Fortune 500 company reached out to us noting that they had a warehouse full of packaging and printed material that needed disposing of, we were more than willing to help out. We recycled the material on their behalf conserving: »» 500 mature trees »» 122,000 KwH of electricity »» 13,000 gallons of oil »» 700 gallons of gasoline »» 209,000 gallons of water »» 100 cubic yards of landfill space. We were happy to be of service to our client and ultimately the environment and we are eager to extend such efforts to more of our clientele. 30 EarthColor | Let’s change for good. With nationwide facilities, large press rooms running 24 hours a day, an extensive computer system as well as our full-time office-end activities, we use a significant amount of energy. The majority of the world’s energy originates from the burning of fossil fuel. This truth coupled with growing global demand comes at a high cost to the environment. We believe that the necessity to reduce our energy use, especially our use of energy sources which are debilitating to the environment, cannot be overstated. We are committed to reducing energy use and driving energy efficient improvements into all aspects of our operations. We have taken a number of steps in this direction, including: »» Installation of occupancy sensors for lighting in areas such as executive offices, conference rooms and client rooms. »» Installation of programmable thermostats, set to an energy-saving temperature during non-office hours. »» Replacement of incandescent light bulbs with energy-efficient compact fluorescent light bulbs and/or LED lighting. »» Purchase and use of Energy-Star compliant equipment where possible. These improvements coupled with behavioral changes such as switching off unnecessary lights or shutting down computers when not in use, have led to a 4.5 percent decrease in our energy use in 2009. Our goal is to further decrease our energy use by 5 percent in 2010. All industry needs power, but at what cost? In 2007 we committed to using wind power, offsetting 100% of our electricity usage. In 2009 we purchased 32 million kilowatt hours of renewable energy. It is this level of commitment combined with our proactive promotion of renewable energy sources that was recognized in 2009 by the EPA through the Green Power Purchaser of the Year Award. In addition to reducing our energy use, EarthColor actively embraces renewable energy sources, which in our case is wind power. In April 2007, we committed to purchasing 25 million kilowatt hours of Green-e® Energy Certified wind-generated Renewable Energy Certificates (RECs), offsetting 100% of our electricity usage — all production, manufacturing and administrative-end work, every kilowatt of energy we consume as an organization. We remain committed to wind power and since 2007 we have continued to purchase RECs: 32,000,000 kilowatt hours in 2008; 32,996,000 in 2009 and 31,000,000 for both 2010 and 2011. It is this commitment, combined with our proactive promotion of renewable energy sources that was recognized in 2009 by the EPA through the Green Power Purchaser of the Year Award. The estimated environmental benefit of EarthColor’s wind energy commitment in 2009 is equivalent to planting over 2.9 million trees or not driving over 38 million miles every year! Total energy usage Natural gas usage EarthColor customers have the option to apply a "Printed Using 100% Wind Power" logo to their printed materials to demonstrate the difference they too are making by choosing an environmentally friendly printer. We also use natural gas, although in much smaller quantities. In 2009, we used a total of 76,811 decatherms of natural gas, a decrease of 11 percent from 2008. We aim to reduce our consumption of natural gas in 2010 by 5 percent. 100,000 Decatherms Kilowatt hours 35,000 4.5% decrease on 2008 17,500 0 75,000 11% decrease on 2008 25,000 0 2008 2009 2010 goal 2008 2009 Sustainability Report 2009/10 2010 goal 31 Workplace enrichment We believe all employees have the right to work in a professional atmosphere which promotes equal opportunity and prohibits discrimination. We strive to be a great place to work by fostering a safe, dignified and inclusive work environment. Fostering an inclusive workplace Managing workplace safety Our Employee Policy & Procedures Handbook details our dedication and comprehensive approach to fair employment practices through the promotion of open and direct communication as well as the fostering of a respectful and dignified workplace. Our handbook also confirms EarthColor’s commitment to adhere to all applicable labor laws and regulations and outlines our policies and principles in regard to: code of conduct; code of business ethics; open door policy; environmental sustainability; health and safety; discrimination; hours and compensation; employee benefits; and employee benefits. All employees are provided a copy of our handbook upon hiring and/or during orientation. EarthColor is committed to providing a safe and healthy work environment and we make certain to comply with all applicable federal and state occupational health and safety laws and regulations. EarthColor is intrinsically committed to diversity, which is reflected in our workforce — approximately 40 percent of our employees are from minority groups and 25 percent of our employees are women. Our commitment to diversity is also reflected in our senior executive management with 30 percent coming from minority groups and 30 percent being women. As a company we are proud of the diversity of our workforce, particularly as the printing industry has traditionally been male-dominated. 32 EarthColor | Let’s change for good. All our employees are trained on an annual basis and directed to perform their functions in a manner that ensures a safe, efficient and productive work environment. Employees are encouraged to be both knowledgeable and aware of the safety requirements of the company and are responsible for using the proper safety equipment assigned for each specific duty and following all safety procedures. The company is responsible for providing the necessary and appropriate personal protective equipment. Responsibility and accountability for accident prevention is assigned to all management and supervisory personnel within their individual areas of operation. In addition, we have established and maintain an "open door" policy through which all employees are encouraged to contribute to the early identification and solution of any unfair employment practices or occupational health and safety problems without fear of retaliation. We are committed to providing a safe, healthy, respectful and dignified work environment that actively promotes diversity. Our goal is to run our operations with zero work-related injuries on the part of our employees. We are happy to report that our overall incident rate is lower than the industry average by approximately 14 percent upon examination of our workers’ compensation experience rating factor. A major concern for us as a printing company is the air quality within our facilities as well as our impact on the air quality outside, which has clear implications not only on the health of our employees, but also on the communities within which we operate. As mentioned previously, EarthColor utilizes state-of the-art technology and employs a number of programs that serve to create a healthier environment for our employees both in our pressrooms and throughout our facilities. This technology has effectively reduced VOCs and greenhouse gases in addition to eliminating odors, making the air we breathe cleaner and healthier. In addition, since VOCs and greenhouse gas emissions are captured as they are emitted, they are consequently not released into the air outside, reducing our impact on the local community. In line with our commitment to ensure high air quality standards within our plants, we have implemented and maintain specific requirements for all internal renovations within our facilities in order to reduce toxins and VOCs while promoting environmental sustainability. These requirements were strictly adhered to during the renovation of our client rooms at our Earth.Thebault facility in 2009 and included: »» Energy efficient lighting and HVAC »» Low or no VOC paints and adhesives »» FSC- or SFI-certified wood products »» Floor score certified tiles »» Minimum 30 percent recycled material for textiles We are continuously striving to improve our health and safety program and record. We monitor and track our performance internally identifying areas for improvement. Our policies and performance is also independently evaluated on an annual basis by a third party for compliance. 40 % 30 % of our employees are from minority groups of our executive management are women Sustainability Report 2009/10 33 Beyond our borders We recognize that our choices, actions and practices affect people and the environment far beyond our immediate locale. As a result, we make every effort to ensure a minimal negative impact, as well as a strong positive one. Supply chain management Our choice of suppliers and vendors with which we work is vital — they provide us with the materials and goods necessary to run our operations. It goes without saying that if the ingredients used are not sound, stable, and responsibly sourced, these limitations will clearly affect the quality of the final product. That is why we hold our suppliers and vendors to high standards proportionate to our operations. EarthColor has an extensive Client Education Program, through which we proactively and eagerly work with our clients to help provide a better understanding of how to utilize environmentally sustainable strategies and paper while reaching cost effective solutions that successfully meet business needs. Increased awareness of environmental sustainability within the business world coupled with our Client Education Program has served to enhance the willingness of clients to increasingly choose certified and/or recycled raw materials over non-certified/virgin fiber. Going a step further, we have expanded our sustainability efforts to encompass our entire chain-of-custody. EarthColor promotes responsible purchasing of forest products in our supply chain through a broad education program encompassing responsible forestry standards and management, the Lacey Act as well as the emerging REDD (Reducing Emissions from Deforestation and Degradation) framework. Our program has been extended to both clients and supply chain partners to raise awareness and knowledge of responsible forest management. We also have a vendor and supply chain green development strategy in place, through which we educate our suppliers and vendors on proper responsible forestry standards and work with them to ensure that they are progressing towards certifications (if they are not already certified) and are in fact compliant with forestry standards. 34 EarthColor | Let’s change for good. As a company we cannot operate successfully as an isolated enclave — the fact is that our business runs in collaboration with and is in part dependent upon the larger business community. Subsequently, what goes on beyond our borders has clear implications for us as a company. Yet this interdependency presents us with a great opportunity: as a large commercial printer we are able to help drive sustainability in the print supply chain by holding our suppliers and vendors to high environmental standards. We have made good on this opportunity understanding that our sustainability efforts can only go so far without the collaboration of those around us. Supplier Diversity EarthColor is committed to supplier diversity and to this end has a 49 percent ownership in Nicholas Earth Printing, a certified Minority Business Enterprise (MBE) by the State of Texas and California Public Social responsibility EarthColor has kicked off our Social Responsibility Program this year through a collaboration with the Institute for Sustainable Communications (ISC). We enthusiastically back ISC’s SOS reach and Urban Scholars program, which support the academic and career development of promising young scholars and professionals who are at a serious financial disadvantage Utilities Committee (CPUC). Nicholas Earth Printing is not a division of EarthColor, it functions as an independent company with all business decisions coming from its Chief Operating Officer. Rather, it is a strategic partnership created in 2004 to assist diversity efforts within the printing industry. Through this alliance, EarthColor has shared capacity and best practices with a certified diversity supplier which wouldn’t have had access to such benefits on its own. through programs providing mentoring, internships, scholarships and fellowships. This was a great opportunity for EarthColor to make a positive impact well beyond our borders. by EarthColor to ISC have been specially designated as scholarships for these students to help them continue their education. We worked closely with ISC and two very talented students in producing an early version of this report, providing real-life work experience for the students and a very positive experience for us. Funds contributed We would like to give a special thank you to Mel and Shadman for their hard work and effort. It was a pleasure working with you. We wish you all the best in your studies and future endeavors. Engagement The business community has a significant impact on society and for that reason corporations and companies are being held accountable for making a real commitment to environmental sustainability and social responsibility. Looking at the larger picture, sustainability is not a standalone issue it is intrinsically interrelated to a number of business issues: and therefore cannot and should not be considered separate from overall business strategy, particularly in a world of ever-more limited resources. The bottom line: sustainability makes business sense and affects future profitability and vitality. We believe that as a business, EarthColor is responsible for being a driver of sustainable change with the print communications industry. Our business operations can and do make a difference as demonstrated throughout this report. Although we still have a long way to go, we hope that our story will motivate others to make a commitment to more sustainable business strategies. After all, it will take all of us working together to make this world a better place. In an effort to further drive improvements within our own company, the print communications industry and the larger business community, EarthColor is proud to support and collaborate with the following organizations: Forest Stewardship Council, Sustainable Forest Initiative, Programme for the Endorsement of Forest Certification Schemes, SmartWood, Rainforest Alliance, SGS, Canopy, Ceres, EPA Climate Leaders, EPA Green Power Partner, Conservation International, Community Energy and the Institute for Sustainable Communications. We would like to give a special acknowledgment to Ceres, whose review and comprehensive feedback helped us to produce a more vigorous disclosure of our sustainability efforts. We look forward to continuing our relationship in 2010 and 2011 and with their collaboration aim to have a more robust report next year. Sustainability Report 2009/10 35 GRI content index We track and report our environmental performance through a company-wide data matrix based on the Global Reporting Initiative. We chose to use the GRI G3 Guidelines because they provide a transparent, quantifiable and globally recognized methodology for tracking environmental and sustainability performance. Outlined below are the sections/indicators that we have reported on within the context of this year’s disclosure. GRI Section/Indicator Page Strategy and Analysis 1.1 GRI Section/Indicator Governance, Commitments, and Engagement Statements from the most senior decision-maker of the organization about the relevance of sustainability to the organization and its strategy. 4 4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight. 16 4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social topics. 8, 16-17 4.12 Externally developed economic, environmental, and social principles, or other initiatives to which the organization subscribes or endorses. 9, 19 Organizational Profile 2.1 Name of the organization. 1, 6 2.2 Primary brands, products, and/or services. 6 2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures. 6, 35 2.4 Location of organization’s headquarters. 6 2.10 Awards received in the reporting period. 11 Reporting period (e.g., fiscal/ calendar year) for information provided. 1-2, 17 3.3 Reporting cycle (annual, biennial, etc.) 17 3.12 Table identifying the location of the Standard Disclosures in the report. 36-37 36 EarthColor | Let’s change for good. Management Approach and Performance Indicators Environmental Report Parameters 3.1 Page EN1 Materials used by weight or volume. 19, 28 EN2 Percentage of materials used that are recycled input materials. 28-29 EN3 Direct energy consumption by primary energy source. 30-31 EN5 Energy saved due to conservation and efficiency improvements. 30-31 GRI Section/Indicator Page GRI Section/Indicator Management Approach and Performance Indicators Management Approach and Performance Indicators Environmental Environmental EN6 Initiatives to provide energyefficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives. 30- 31 EN8 Total water withdrawal by source. 26-27 EN14 Strategies, current actions, and future plans for managing impacts on biodiversity. 18-25 EN16 Total direct and indirect greenhouse gas emissions by weight. 24 EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. 23-25 EN19 Emissions of ozone-depleting substances by weight. 24 EN22 Total weight of waste by type and disposal method. 28-29 EN23 Total number and volume of significant spills. 28 Page EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. 9-10, 22-25 EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce. 24-25 Labor Practices and Decent Work LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region. Sustainability Report 2009/10 33 37 Earth.Aware calculator Amount of energy saved Greenhouse gas reduced or offset Gallons of water saved In 2009 we launched our innovative Earth.Aware calculator. This application computes the real environmental savings impact for a specific print job by taking into account the environmental attributes engineered into the paper along with the environmentally designed, low impact printing systems (LIP) utilized at EarthColor. The calculator is not limited to jobs which use our Earth. Acres preserved and trees saved What this means for our clients is that we can show them the tangible positive impact they are making by choosing to print with us. In addition, through our newly designed website, our clients can log into their accounts and view their total collective savings as a result of collaborating with us. Our clients also have the option of printing their environmental savings right on the piece if they so choose. Aware paper line and can be used to calculate the environmental savings of any print job. Try it for yourself at: www.earthcolor.com 38 EarthColor | Let’s change for good. Production notes In line with our commitment to sustainability, EarthColor sought to minimize the environmental impact of our Sustainability Report throughout the entire production lifecycle. Our chosen paper stock was EarthColor’s own Earth.Aware® paper, which is FSC-certified, elementally chlorine free, carbon neutral and contains a minimum of 10% recycled post consumer waste. We applied the sustainable manufacturing principles described throughout this report in its production, including: 100 percent wind power, socially responsible procurement, lean manufacturing, green chemistry principles, the recycling of residual materials as well as the use of reduced volatile organic compounds (VOCs) inks and coatings. In addition, our innovative process of bio-oxidation and pilot carbon sequestration system were employed during the printing process resulting in the effective destruction of residual VOCs and reduction of greenhouse gas emissions. We also purchased offsets where carbon could not be eliminated to render this report carbon-managed and climate-balanced. Environmental savings: » 0.06 acres preserved via sustainable forestry » 14.93 less trees consumed »1 0.39 million BTUs less energy used, the equivalent of powering 0.11 homes for a year »1 6248.40 lbs of greenhouse gas reduced and/or offset, the equivalent of taking 1.48 cars off the road for a year »5 430.99 gallons less water consumed. Working to make scenes like this a thing of the past. EarthColor EARTHCOLOR 249 Pomeroy Road Parsippany NJ 07054-3727 P: (973) 884-1300 F: (973) 952-8296 www.earthcolor.com
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