EPA Environmental Summit Atlanta, GA May 11th, 2006

Eco-Vision & Environmental Partnerships

Jim Laney ManagerEnvironment, Safety & HealthDENSO International America, Inc.Southfield, MI

DENSO

DENSO

Mike Myzska Environmental Section Leader Denso Mfg Michigan Battle Creek, Michigan

Supplier Distribution: -Smartway

Manufacturing Supplier:-Design for the Environment-Green Suppliers Network-Suppliers’ Partnership for the Environment-Performance Track

Original Equipment Manufacturer (OEM):-Design for the Environment-Environmentally Preferable Purchasing-Performance Track-Energy Star-Green Suppliers Network-Suppliers’ Partnership for the Environment

OEM Distribution: -Smartway

Retailer:-OSW Product Stewardship

Recycle:-OSW Product Stewardship

EPA Programs and the Product Lifecycle

Institutional Purchaser:

Environmentally Preferable Purchasing

AgendaAgenda•DDENSO NA Company Profile• Products• Facilities • Sales• ESH Organization

Denso Battle Creek, MI (DMMI) Site Profile• Background• SmartWay & National Performance Track

DENSO ProductsDENSO Products

• Emission Control Components• Fuel Management Components (Gasoline)• Air Intake Components• Ignition Components• Transmission Control Components• Engine Management System Components (Diesel)• Starters• Alternators

Engine Related ProductsEngine Related Products

Body Electronics Products• Body and Chassis Components• Relays

Driving Control Systems• Airbag Sensing Systems• Electric Vehicle Systems

•Compressors• HVAC Units• HVAC Unit Components• HVAC for Commercial Vehicles• Transport Refrigerators• Radiators• Cooling Fans• Inter-Coolers• Oil Coolers• Cooling Units

Information/Communication Products

• Navigation• Telematics• Information Processing Devices• Factory Automation Devices

Semiconductors / Sensors

Climate Control ProductsClimate Control Products

DENSO North America FacilitiesDENSO North America FacilitiesDENSO North America FacilitiesDENSO North America Facilities

DMAR

North American SalesNorth American Sales

$550

$950$1,350

$1,600

$2,230$2,500

$3,100

$3,800$4,100

$4,760

$5,300

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

'86 '88 '90 '92 '94 '96 '98 '00 '02 '03 '04 '05

Sales

1986 to 2004

Do

llars

($M

)

Established: December 16th 1949

Net Sales: $24.2 billion FY04

Net Income: $1.04 billion FY04

Employees: 104,183 in 31 countries & regions 3/05

Global DENSOGlobal DENSO

(FY end 3/31/04)

Global Net Sales Breakdown

Global Net Sales Breakdown

Powertrain Control Systems (22.7%)

Electronic Systems(14.8%)

Electric Systems (11.4%)

Small Motors (7.1%)

ITS (3.6%)

Other Automotive (1.4%) Thermal Systems

(34.9%)Others (2.0%)

Industrial Systems & Consumer Products (2.1%)

FY End March 31, 2004

DIAM Executive Vice President (C/S)

DIAM Senior Vice President (C/S)

• Green Procurement

• EMS

5S CommitteeEnv. CPT Committee

DIAM ESH OrganizationDIAM ESH Organization

DIAM Chairman & CEO

DIAM ESHDEnvironmental, Safety & Health

Department

Coordinator - ESH StaffFacilities RepresentativeHousekeeping RepresentativePurchasing RepresentativeTTS Representative

S/R Representative

ESH Representative2 Eng RepresentativeCS Representative

Coordinator – TTS Staff

Manage DIAM Eco-Vision Activities

Manage DIAM Safety Activities

• Waste Reduction• Energy Reduction

• Policy Making• Incident Investigation• Contingency Planning

DENSO ENVIRONMENTAL ORGANIZATIONDENSO ENVIRONMENTAL ORGANIZATIONDENSO ENVIRONMENTAL ORGANIZATIONDENSO ENVIRONMENTAL ORGANIZATION

DIAM SoC SECRETARIAT

DIAM SoC GROUP LEADERS

DIAM SoC Work Group

DIAM SoC OrganizationDIAM SoC Organization

• DIAM ESHD• DIAM EAD

Members From:• DIAM MED• DIAM BPD

Coordinator: R. Townsend, DIAM ESHD

SoC Executive: M. Matsushita, DIAM President & COO

Members From:• DIAM Engineering • DIAM Marketing

DENSO NA Environment & Safety OrganizationDENSO NA Environment & Safety Organization

DNJP Environment CommitteeDNJP Environment CommitteeChairman: DNJP President

Product Environment Subcommittee

Production Environment Subcommittee

Environmental Communication Subcommittee

North America Regional Environment CommitteeNorth America Regional Environment Committee DIAM Chairman & CEO Matt Matsushita

DENSO Group Environmental Management Committee DENSO Group Environmental Management Committee Chairman: J. LaneyChairman: J. Laney

Eng Representative

NASCOM - North American Safety Committee Chairman: J. Laney

Southfield Campus HQ & R&D

DENSO Group Environmental Management Committee

DENSO Group Environmental Management Committee

DGEMCDGEMC

DENSO Group DENSO Group

Environmental Environmental

Management Management

Committee Committee

DIAM

AMI

AFCO

MACI

TBDN

DMAT

DNMX

DSCA ANC

DMMI

AIMS

GNC

12 original participants

Now 17 sites

DMAR DMTN

DWAM

KDMK

DMCN

Vision

Strategy

The corporate global environmental plan

EV 2015 has 28 specific Global targets

Incorporation Each “Region” to develop local targets (i.e. NA, EU, Asia..)

Implementation

Regional targets to be implemented at each plant

Basic Framework

Eco-Vision

ECO-Vision 2005

DENSO Corporate Environmental direction since 2000

DENSO Global ECO-VisionDENSO Global ECO-Vision

Eco-Vision 2005, followed by Eco-Vision 2015

The key “pillars” to the program (2015) …• Eco – Management (inside of our walls) • Eco – Products (Product & process design) • Eco – Factory (Efficient operations)• Eco – Friendly (Community involvement)

The Eco-Vision program serves as the backbone for a Green Manufacturing system at DENSO

Eco-Vision Round 2 2015- What’s next?

Regional Approach

ECO-Product

DENSO ECO-ProductsDENSO ECO-Products

CO2 Air Conditioning SystemCO2 Air Conditioning System

Hybrid VersionCO2

CO2 AC Components

DENSO

DENSO ECO-Factory in NA DENSO ECO-Factory in NA

DENSO Manufacturing Michigan Inc.

DMMI Environmental Projects

• Waste Water / Stormwater

• Zero Waste

• PRTR Chemical Reductions

DMMI Environmental Projects

• Waste Water / Stormwater

• Zero Waste

• PRTR Chemical Reductions

Location: BattleCreek, MI

Associates: 3200

Products: HVAC, Blowers, Radiators, Heaters, & AC Evaporators & Condensers

EV 2015 has 28 specific Global targets

For Logistics …

Improve transportation and eco drive to reduce global CO2 emissions

Expand understanding of the CO2 inventory, to include transportation issues, including company vehicles, business trips, and others.

Global and local requirements to reduce emissions

Is SmartWay a tool to help DENSO implement some of her Global Goals?

Eco-Vision and Smartway ?

• Goal: Improved environmental performance in

freight delivery services

• EPA goals - Reduced CO2 emissions

- Improve energy security

- Better relationship with the trucking industry

• 308 + SmartWay Partners (Jan. 2006)

DMMI invited because of involvement EPA Performance Track (Stewardship) Program

EPA SmartWay

Helps w/ Integration

As a Shipper - Program Benefits:

* Reduced Environmental Transportation Footprint

* Potentially lower costs for delivery services with improved logistics

* Demonstrate corporate citizenship by hiring cleaner carriers

* Enhanced public relations value for Partners

* Qualify to use the SmartWay Transport Partner logo

* Improved metrics to monitor shipping costs

The Program is consistent with DENSO’s corporate expectations in Eco Vision 2005 and 2015.

EPA & State partnerships assist Denso in attaining ECO-Vision Goals!

Bottom Line

DENSO – Getting Started

Time Frame Program Emphasis 0.5 FLEET Score Attainment

Year 1. Awareness & Investigation + 10 %

Year 2. Implementation + 30 %

Year 3. Improvement +60%

The Concept is …

1. Emphasis on carrier involvement 2. Gradual improvements

Proposed 2006 G&O’s

Action Items

Company & Corporate Awareness Improve awareness of EPA carrier system Corporate Environmental Presentation Corporate Logistics Presentation Carrier Notification Carrier Presentation / Luncheon? Tier II Supplier Presentation

Site Impact Reduction Improve carrier mileage tracking systems Implement site footprint committee Footprint evaluation & benchmarking Site idling reduction program

Key members in the decision making process

Purchasing Production Control

Summary

DENSO Michigan joined SmartWay – Because …

* Consistent with our Corporate Environmental Directives

* We can reduce our Environmental Transportation Footprint

* Smartway carriers likely to become more competitive

DENSO Michigan joined SmartWay – Because …

* Consistent with our Corporate Environmental Directives

* We can reduce our Environmental Transportation Footprint

* Smartway carriers likely to become more competitive

Any Questions?Any Questions?

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