ENVIRONMENTAL SUSTAINABILITY REPORT - ROCKLINE Europe
ENVIRONMENTAL SUSTAINABILITY REPORT - ROCKLINE Europe
ENVIRONMENTAL SUSTAINABILITY REPORT - ROCKLINE Europe
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<strong>ENVIRONMENTAL</strong><br />
<strong>SUSTAINABILITY</strong><br />
<strong>REPORT</strong><br />
2011
Energy Greenhouse<br />
Gas<br />
Solid<br />
Waste<br />
Landfill<br />
Rate<br />
Waste<br />
Water<br />
Transportation<br />
Environmental Sustainability Mission Statement<br />
Rockline will take positive steps to develop<br />
environmentally sustainable processes, products,<br />
packaging, and raw materials throughout the<br />
supply chain that will deliver long-term value for<br />
our customers, communities, and associates.
1<br />
Contents<br />
Location & Sales<br />
Introduction<br />
Profile<br />
Aspirations<br />
Stakeholders<br />
Energy<br />
Greenhouse Gas<br />
Wastewater<br />
THREE TIER VISION<br />
3<br />
5<br />
7<br />
9<br />
11<br />
13<br />
15<br />
17<br />
KEY METRICS<br />
Energy Use<br />
Greenhouse gas emissions<br />
Wastewater<br />
Total solid waste - coffee filter units<br />
Total solid waste - wet wipe units<br />
Landfill Rate<br />
Transportation<br />
Solid waste<br />
Landfill<br />
Transportation<br />
Product level scoring<br />
Culture<br />
Raw materials<br />
Suppliers<br />
Management systems<br />
Looking ahead<br />
Short term — annual goals. Rockline sets annual sustainability targets, as a way of measuring<br />
our progress from year to year. These goals are small, incremental steps toward sustainability.<br />
They are intended to be challenging but achievable, and will keep Rockline pointed in the<br />
right direction.<br />
Medium term — multi-year goals. Rockline’s current multi-year goals are set for our fiscal year<br />
2015. Just beyond the horizon, these more ambitious goals give shape to where Rockline is<br />
headed in a strategic sense.<br />
Long term — aspirations. For the long term, Rockline has delineated a series of sustainability<br />
“aspirations” — our hope for what a completely sustainable Rockline might look like, at<br />
some unknown point in the future. This is the biggest of big-picture thinking, and what we<br />
hope is a very bold statement for our company.<br />
19<br />
21<br />
23<br />
25<br />
27<br />
29<br />
30<br />
31<br />
33<br />
KEY ACHIEVEMENTS<br />
Surpassed 2015 energy reduction goal of 15%<br />
Surpassed 2015 landfill rate goal of 5%<br />
Reduced wastewater year on year for the first time<br />
KEY CHALLENGES<br />
Increase in Scope 3 transportation emissions year-on-year<br />
Climbing solid waste figures in our coffee filter business<br />
Wastewater figures are higher than FY 2009 (base year) levels<br />
Letter from the President<br />
Rockline’s commitment to environmental sustainability remains strong. Over<br />
the past year we have worked hard to create a culture of sustainability by<br />
elevating the visibility of our program among our associates and reinforcing<br />
the importance of sustainability, as we have previously done with our safety<br />
and quality programs.<br />
A major part of this cultural change is our internal Sustainability 101 training program, which we began<br />
last year as a way to introduce our employees to the principles of sustainability and to give them an<br />
opportunity to offer their ideas and input. Through this training program we have received hundreds of<br />
ideas for sustainability initiatives from every corner of the company.<br />
From the beginning, Rockline’s commitment to sustainability has been driven by two motives: First, it<br />
is important to our stakeholders that we measure and improve our environmental impact. Second, it is<br />
the right thing to do — both for the environment and for our business.<br />
PRIORITIES<br />
In 2010, we published our three-tier strategy<br />
for improving our environmental impact. In<br />
the short term, we set our sights on reducing<br />
our carbon footprint, wastewater, solid<br />
waste, and landfill rate. We accomplished<br />
many of these goals, diverting 989 metric<br />
tons of waste from landfill and reducing<br />
our greenhouse gas emissions by 1,413<br />
metric tons. And, for the first time since<br />
we implemented our program in 2008, we<br />
have reduced our year-on-year wastewater<br />
disposal, eliminating 7,920 cubic meters of<br />
non-product water use.<br />
As you will see in this report, we also have<br />
a set of long-term guiding principles we call<br />
our Aspirations. A key priority over the past<br />
year was to take substantive steps toward<br />
creating ecologically intelligent products. We<br />
have made significant progress toward this<br />
goal by creating tools that allow our product<br />
NEXT STEPS<br />
We are now one year closer to achieving our 2015 goals. The efforts of our manufacturing facility<br />
Green Teams have paid off, and I am confident that 2012 will bring more success. At the same time,<br />
we also have a lot of hard work ahead of us, as we strive to integrate our product scoring tool and<br />
continue to enhance our sustainability efforts.<br />
Welcome to our third annual report – we appreciate you taking the<br />
time to read about our program, and hope you will contact us with<br />
any questions you may have.<br />
developers to better evaluate and compare the<br />
impact of different materials and designs.<br />
CHALLENGES AND OPPORTUNITIES<br />
In the coming years, Rockline will face many new<br />
and unique challenges. Consumer preferences<br />
continue to evolve, and government agencies<br />
are tightening their regulation of marketing<br />
claims on products’ environmental impact. Rising<br />
energy and household costs influence the way<br />
our customers make their purchases and set their<br />
priorities. The same rising costs also influence our<br />
decisions as a business, and in this regard, our<br />
efforts to reduce energy use and waste couldn’t<br />
be more important.<br />
Even in a world of continuous change, however,<br />
some things are constant: Rockline will continue<br />
to build upon a foundation of integrity and<br />
transparency, we will adapt to the transforming<br />
marketplace, and we will remain committed to<br />
reducing our environmental footprint.<br />
President<br />
2
Global<br />
LOCATIONS<br />
PRIMARY USERS<br />
Retailers, drugstores,<br />
convenience stores,<br />
institutions, grocery<br />
stores, supermarkets,<br />
mass merchandisers,<br />
and club stores.<br />
CATEGORIES<br />
Antibacterial<br />
Baby<br />
Baking<br />
Disinfecting<br />
Food Service<br />
Health and Beauty<br />
Household<br />
Incontinence<br />
Global<br />
SALES<br />
NORTH AMERICA<br />
Canada<br />
Jamaica<br />
Mexico<br />
Puerto Rico<br />
United States<br />
CENTRAL AMERICA<br />
Costa Rica<br />
El Salvador<br />
Panama<br />
SOUTH AMERICA<br />
Argentina<br />
Chile<br />
Colombia<br />
Ecuador<br />
Trinidad and Tobago<br />
Venezuela<br />
EUROPE<br />
Austria<br />
Belgium<br />
Czech Republic<br />
Denmark<br />
England<br />
France<br />
Germany<br />
Greece<br />
Luxembourg<br />
Netherlands<br />
Norway<br />
Northern Ireland<br />
Poland<br />
Portugal<br />
Republic of Ireland<br />
Russia<br />
Scotland<br />
PRIMARY BRANDS<br />
3 4<br />
Slovakia<br />
Spain<br />
Sweden<br />
Wales<br />
ASIA<br />
China<br />
Hong Kong<br />
Japan<br />
South Korea<br />
OCEANIA<br />
Australia<br />
New Zealand<br />
21 Billion Individual Wipes and 22 Billion Individual Filters<br />
®<br />
®
Welcome to<br />
<strong>ROCKLINE</strong>’S<br />
ANNUAL <strong>REPORT</strong><br />
INTRODUCTION<br />
Welcome to Rockline Industries’ 2011 environmental sustainability report. Over the past year<br />
we have begun many exciting initiatives that have resulted in big achievements in key areas.<br />
The purpose of this report is to update our stakeholders on the status of these efforts.<br />
BOUNDARIES<br />
In this report, we have included information about all of the operations over which Rockline<br />
exercises financial control, with the exception of two minor subsidiaries, Rockline Netherlands<br />
B.V. and Rockline Trading Hong Kong. These divisions represent less than 1 percent of our<br />
global business activities and environmental impact. We have also excluded Soshio (HK)<br />
Industrial Co. Ltd., our Chinese manufacturing partner, as we do not exercise financial control<br />
over their operations.<br />
SCOPE<br />
The greenhouse gas emission data in this report is comprised<br />
primarily of Scope 1 and 2 activities. The Scope 1 and<br />
Scope 2 data is derived from our manufacturing facilities and<br />
business offices. This report also contains a limited amount<br />
of Scope 3 data (greenhouse gas emissions from outbound<br />
shipping of our finished goods<br />
to customers).<br />
METHODOLOGY<br />
Unless explicitly indicated otherwise, all data, figures, and charts cover the period of our<br />
fiscal year ending in 2011, which runs from July 1, 2010, to June 30, 2011. The data in this<br />
report have been collected from invoices and statements of account sent to Rockline by<br />
our utilities providers and other vendors. We have calculated our carbon footprint using<br />
the Greenhouse Gas Protocol Corporate Standard, as well as emissions coefficients from<br />
the United States Environmental Protection Agency (US EPA) and the United Kingdom<br />
Department of Farm, Environment, and Rural Affairs<br />
(UK DEFRA). The specific uses of the relevant<br />
coefficients are noted in the appropriate places later<br />
in this report, but for consistency, we have used the<br />
same coefficients when comparing more than one<br />
year’s worth of data. This is our third annual report.<br />
Our previous report was published in December 2010,<br />
covering our fiscal year 2010 (July 1, 2009, to June 30,<br />
2010).<br />
CONTACT<br />
We welcome and appreciate all inquiries<br />
pertaining to our environmental<br />
sustainability program.<br />
5 6
WHO WE ARE<br />
ORGANIZATIONAL PROFILE<br />
Rockline Industries is a privately-held<br />
manufacturer of wet wipe, coffee filter,<br />
and baking cup products. Founded in<br />
Plymouth, Wis., in 1976 by Ralph Rudolph,<br />
Rockline has grown to become a global<br />
enterprise, employing 1900 people<br />
worldwide. We are proud of the hard work<br />
and customer loyalty of the past 35 years<br />
that has enabled our company to grow<br />
from a single facility in Wisconsin to six<br />
facilities worldwide.<br />
In 1992, Mr. Rudolph passed control of<br />
the organization to his son, Randy, who is<br />
our current president. The elder Rudolph<br />
continues to serve as the Chairman of the<br />
Board of Directors. Rockline is a familyowned<br />
company with its headquarters in<br />
Sheboygan, Wis.<br />
Rockline’s environmental sustainability<br />
program was started in 2008. The<br />
need for a sustainability program was<br />
obvious: Earth’s population has grown<br />
exponentially in the past four decades,<br />
and with exponential growth comes an<br />
1970<br />
1976<br />
Rockline was founded by Ralph H.<br />
Rudolph in Plymouth, Wis.<br />
1976<br />
Our headquarters moved from<br />
Plymouth, Wis. to Sheboygan, Wis.<br />
exponential need for resources like clean<br />
water, food, fuel, and consumer goods of<br />
all kinds. As business and industry work to<br />
meet this growing demand, we have seen<br />
unprecedented levels of carbon emissions<br />
and waste.<br />
Many consumers have become aware<br />
of this trend, and are demanding that<br />
corporations begin to do business in a<br />
more environmentally friendly manner.<br />
Rockline’s customers and communities are<br />
no different. As a result, Randy Rudolph,<br />
Rockline’s president, commissioned an<br />
executive-level environmental sustainability<br />
steering committee to formulate Rockline’s<br />
response. Over the past three years, this<br />
committee has established the framework<br />
of sustainability at Rockline by setting goals,<br />
tracking progress, and working to ensure<br />
Rockline does its part to become a better<br />
steward of the environment.<br />
1989<br />
Purchased our Springdale,<br />
Ark., facility<br />
1992<br />
Ralph Rudolph passed control of the<br />
company to his son and the current<br />
president, Randy L. Rudolph<br />
1996<br />
Acquired Monteville, N.J.<br />
facility which manufactures<br />
coffee filters<br />
MISSION:<br />
Rockline will take positive steps to develop<br />
environmentally sustainable processes,<br />
products, packaging, and raw materials<br />
throughout the supply chain that will<br />
deliver long-term value for our customers,<br />
communities, and associates.<br />
Rockline Industries Environmental Sustainability Steering Committee<br />
Ron Kerscher Sr. V.P. of Sales & Marketing<br />
Rich Rudolph V.P. of Sales & Marketing<br />
Nick Santoleri V.P. of Manufacturing - Wet Wipes<br />
Lorraine Crosbie EU Retail Sales Director<br />
Dave Deising Director of Marketing<br />
David Cook Contract Manufacturing Services Sales Director<br />
Joshua Eldridge Global Environmental Sustainability Coordinator<br />
2000<br />
Rockline made its first interna-<br />
manufacturing facility in Redditch,<br />
England<br />
2004<br />
Engaged in a partnership with<br />
Soshio (HK) Industrial Co. Ltd.<br />
2006-2009<br />
Operated a manufacturing<br />
plant in Zaltbommel,<br />
Netherlands<br />
1980 1990 2000 2010<br />
2008<br />
Purchased our newest facility in<br />
Booneville, Ark.<br />
7 8
Who we<br />
ASPIRE<br />
TO BE<br />
In 2009, Rockline Industries designed a set of aspirations that we defined as our<br />
“ideal end state.” After we received feedback from our stakeholders over the<br />
year, we have decided to maintain these aspirations but treat them like any other<br />
goal — measurable and achievable. The difference with our aspirations is that<br />
while our short- and mid-range goals have specific time frames attached, the time<br />
it will take for us to realize our aspirations is undefined.<br />
We will continue to set targets in the direction of our aspirations, but we also<br />
recognize that when we attain these long-term goals, it does not mean our work<br />
is done — only that we’ll need to regroup and aspire to be better yet.<br />
FOSSIL FUEL INDEPENDENCE<br />
Rockline wants to move away from fossil fuels toward clean, low-carbon energy.<br />
Use energy more efficiently.<br />
Show preference for low-carbon fuels.<br />
Adopt alternative and renewable energy sources.<br />
Eliminate sources of energy use.<br />
CREATE VALUE, NOT WASTE<br />
Rockline wants to minimize waste and its impact on the environment.<br />
Design waste out of our system.<br />
Increase manufacturing efficiencies.<br />
Divert solid waste from landfill.<br />
Investigate alternative waste strategies like reuse, recycling, and energy recapture.<br />
Eliminate sources of wastewater from our operations.<br />
ECOLOGICALLY INTELLIGENT PRODUCTS<br />
Rockline wants to make and sell products that sustain the environment in the long term.<br />
Make products that perform using less material.<br />
Use materials that come from natural sources and recycled inputs.<br />
Incorporate chemicals that are safe for human health and the environment.<br />
Eliminate packaging and choose packaging materials that are more recyclable by consumers.<br />
Metric UOM FY ‘11 Actual FY ‘15 Goals<br />
MJ/std -19%<br />
Over the past year, Rockline made<br />
significant progress along the journey<br />
towards our aspirations – much of which<br />
is covered in detail later in this report.<br />
Throughout this report, as in past<br />
reports, you will notice that quantitative<br />
transparency is a cornerstone of our<br />
program. We have made a public<br />
commitment to not only set specific,<br />
quantitative goals, but to report our<br />
progress against those goals. The table<br />
shows our progress to date against our<br />
2015 goals; all of the metrics use 2009<br />
as the baseline year.<br />
9 10<br />
Energy<br />
GHG Emissions<br />
Wastewater<br />
Solid Waste<br />
(filters)<br />
Solid Waste<br />
(wipes)<br />
kg<br />
CO 2 e/std<br />
L/std<br />
kg/std<br />
kg/std<br />
-12%<br />
+2%<br />
-3%<br />
-12%<br />
Landfill Rate %<br />
-7.0<br />
Transportation<br />
kg<br />
CO<br />
2<br />
e/tkm -1%<br />
STD = One standard unit of 1,000 pieces<br />
-15%<br />
-15%<br />
-5%<br />
-5%<br />
-20%<br />
-5.0<br />
-10%
STAKEHOLDERS<br />
CUSTOMERS<br />
An organization’s true environmental<br />
impact is not limited to internal processes<br />
and products; it is an aggregate of<br />
emissions and waste generated throughout<br />
the supply chain. As our customers<br />
continue to drive sustainability in their<br />
own organizations, they look to us to drive<br />
similar efforts within ours — all with a<br />
goal of delivering a more environmentally<br />
sustainable product to the consumer.<br />
ASSOCIATES<br />
When we say sustainability is the right<br />
thing to do, we believe it to be true in<br />
all facets of our organization, including<br />
our associates. We expect all of our<br />
associates to be committed to reducing<br />
waste, improving efficiency, and adding<br />
value to the products we manufacture. In<br />
order to ensure we can continue to offer<br />
valuable employment opportunities in<br />
the future, we must place an emphasis on<br />
sustainable business practices today.<br />
SUPPLIERS<br />
In addition to our operations, our<br />
environmental impact extends back into<br />
our supply chain. At Rockline, we work<br />
to design supply chains and products that<br />
deliver a better environmental value to the<br />
consumer, and we depend on our suppliers<br />
to adopt sustainable business practices to<br />
help us make these efforts successful.<br />
COMMUNITIES<br />
Rockline is a manufacturing company<br />
with over 2 million square feet of<br />
manufacturing, warehousing and office<br />
space globally. We have an obligation<br />
to the communities in which we operate<br />
to ensure we do our part to make them<br />
livable, clean, and safe. We can do our<br />
part by reducing our emissions and<br />
handling waste in such a way that it is<br />
reused, recycled, and sent to landfill<br />
only as a last resort.<br />
Our stakeholders were identified in 2009 by our<br />
environmental sustainability steering committee.<br />
In the past two years we have engaged our<br />
stakeholders in a myriad of ways. We have<br />
integrated environmental sustainability metrics into<br />
many of our supplier reviews and have engaged<br />
suppliers in designing their own programs. We have<br />
engaged our customers and play an active role in<br />
many of their sustainability programs.<br />
We welcome all questions and<br />
comments regarding our program<br />
from our stakeholder group.<br />
11 12
13<br />
ENERGY<br />
The energy we procure is used in the<br />
conversion of finished raw materials into<br />
consumer packaged goods, including wet<br />
wipes, coffee filters, and baking cups. The<br />
following tables illustrate our energy usage<br />
over the last three fiscal years.<br />
RISKS<br />
The energy that Rockline uses is largely<br />
derived from nonrenewable sources. As with<br />
any nonrenewable commodity, the risk is that<br />
at some point in the future, that commodity<br />
will cease to exist and any processes<br />
dependent upon it will cease to exist as well.<br />
In short, dependency upon nonrenewable<br />
energy sources is the very definition of an<br />
unsustainable practice. The limited supply<br />
of nonrenewable fuels, combined with<br />
volatility in both price and supply, produces a<br />
substantial risk for Rockline.<br />
OPPORTUNITIES<br />
Energy reduction makes great sense as a<br />
sustainable business practice. There are many<br />
affordable energy efficiency technologies<br />
available, and many new technologies<br />
are on the horizon. These technological<br />
advancements are attractive capital<br />
investments because they both decrease the<br />
cost of operations and have short payback<br />
periods. Alternative sources of renewable<br />
energy are also emerging. Though most of<br />
these are currently cost-prohibitive (given the<br />
moderate scale of energy consumption at<br />
Rockline), we continue to keep a finger on the<br />
pulse of alternative energy opportunities.<br />
Electrical 2009<br />
Electricity<br />
All totals are in gigajoules (GJ)<br />
Thermal<br />
Natural gas<br />
2010 2011<br />
Change Not to scale.<br />
–4%<br />
85,784<br />
85,056<br />
82,546<br />
2009<br />
Change 2010 Not to scale.<br />
–30%<br />
54,152<br />
51,168<br />
37,878<br />
No. 2 fuel oil<br />
All totals are in gigajoules (GJ)<br />
–2%<br />
2,135<br />
1,528<br />
2,084<br />
Vehicle 2009<br />
Propane (LPG) –51%<br />
6,338<br />
Motor diesel<br />
Motor gasoline<br />
All totals are in gigajoules (GJ)<br />
–32%<br />
–47%<br />
14,424<br />
362<br />
ENERGY<br />
2011<br />
INITIATIVES<br />
Our Springdale, Ark., facility installed high output fluorescent<br />
lights in their warehouse. They are currently trialing various<br />
energy efficient prototypes in the manufacturing area.<br />
In Sheboygan, Wis., facility temporary vestibules are put up<br />
outside of factory access doors to minimize the amount of<br />
heat lost when our associates enter and leave the building<br />
during the winter months.<br />
Our Redditch, U.K., facility is six years through a 10-year<br />
project to replace the facility’s roof insulation, which will<br />
provide for better heat retention in the winter months.<br />
Our Springdale, Ark., facility revamped its compressor<br />
room. During an audit last year, it was discovered that<br />
they were generating significantly more compressed air<br />
than was required to meet their manufacturing needs. The<br />
new system uses fewer compressors and has resulted in a<br />
significant energy reduction.<br />
Our Springdale, Ark., facility purchased an ultrasonic air<br />
leak detector. It has reduced the time to find air leaks from<br />
several hours to a few minutes. They use the detector as<br />
part of a quarterly air leak detection program.<br />
Our Booneville, Ark., facility installed a new air compressor<br />
with a Smart Air Management (SAM) system that will allow<br />
for more control of compressed air use. The previous system<br />
ran nonstop, consuming an unnecessary amount of energy.<br />
4,277<br />
10,917<br />
209<br />
2011<br />
Change 2010 Not to scale.<br />
3,077<br />
9,802<br />
191<br />
GOAL -15<br />
ACTUAL<br />
GOAL COMPLETED<br />
-19<br />
Geothermal Heating and Cooling<br />
In what is perhaps the largest single environmental initiative<br />
in Rockline’s 35-year history, our Blue Mountain Lake facility<br />
in Booneville, Ark., recently completed the installation of a<br />
geothermal heating and cooling system. The system, which<br />
went online in June 2011, reduces the facility’s dependence on<br />
electricity, which is derived largely from nonrenewable sources.<br />
Geothermal heating and cooling utilizes the relatively constant<br />
temperature of the Earth’s surface to heat a given space during<br />
cool seasons and cool the same space in hotter seasons. This<br />
natural heating and cooling cycle partially replaces the use<br />
of electricity and natural gas in conventional HVAC systems,<br />
thus reducing our consumption of nonrenewable energy and<br />
greenhouse gas emissions from climate control.<br />
Cynthia Totton, the green team lead at Blue Mountain Lake,<br />
has witnessed the system’s installation over the last two years.<br />
“We’ve seen the construction and a lot of work going into this<br />
new system,” Totton said. “We’re excited to turn it on!”<br />
“I’m also looking forward to the climate control for our product<br />
and people,” Totton added. “It gets extremely hot down here!”<br />
During the summer months, Booneville averages 94 degrees<br />
Fahrenheit, and often has days over 100 degrees.<br />
Our Blue Mountain Lake<br />
facility has been a leader<br />
in the implementation<br />
of large scale<br />
environmental projects.<br />
Cynthia Totton and Keith Smith<br />
14
GREENHOUSE<br />
GAS<br />
ELECTRICITY<br />
Rockline’s electricity is sourced from public utilities. To<br />
determine our emissions, we utilize factors published<br />
by the U.S. Environmental Protection Agency (EPA) and<br />
the U.K. Department of Environment, Farm, and Rural<br />
Affairs (DEFRA). Each emissions factor is based on the<br />
mix of fuel sources used by the power plants in the<br />
region where our facilities are located.<br />
THERMAL ENERGY<br />
Rockline’s two primary thermal fuels are natural gas and<br />
No. 2 distillate fuel oil. (The latter is used only at our<br />
Montville, N.J., facility.) To determine our emissions<br />
factors, we utilize factors published by the International<br />
Panel on Climate Change (IPCC). Rockline procures<br />
these fuels from public utilities or traditional commercial<br />
suppliers. The same factors are used for all of our<br />
facilities.<br />
VEHICLE FUELS<br />
Rockline vehicle fuels, which include conventional<br />
motor diesel and conventional unleaded gasoline,<br />
are procured from local suppliers. We utilize IPCC<br />
emissions factors to determine our emissions. The<br />
same factors are used at all of our facilities.<br />
GHG Emissions<br />
Scope 1 (on-site)<br />
Scope 2 (remote)<br />
Total<br />
2009<br />
2011<br />
Change 2010 Not to scale.<br />
–37% 4,713<br />
4,097<br />
2,966<br />
–4% 17,816<br />
17,652<br />
17,110<br />
–10% 22,529<br />
21,741<br />
20,328<br />
–12%<br />
0.551<br />
0.521<br />
0.487<br />
All totals are in metric tons (MT), except the per-unit totals, which are in kilograms (kg).<br />
GHG<br />
GOAL -15<br />
ACTUAL<br />
-12<br />
RISK<br />
The risks associated with our greenhouse<br />
emissions exist on a macro and micro scale.<br />
The risks of greenhouse gasses on a macro<br />
scale — globally and long-term — are still<br />
too nebulous to quantify, at a specific level,<br />
the risk they pose to our business.<br />
At a micro level, carbon taxes, energy<br />
taxes, cap-and-trade schemes, and other<br />
similar emissions regulations pose a risk<br />
to our business in the form of additional<br />
costs. Rockline currently falls below the<br />
threshold for most proposed legislation,<br />
though many of our suppliers could be<br />
subject to new legislation and pass their<br />
costs to us in the form of higher prices.<br />
OPPORTUNITIES<br />
Opportunities exist in the form of energy<br />
reduction and increased use of alternative<br />
fuel sources. Rockline believes that energy<br />
reduction is currently our best strategy for<br />
reducing our greenhouse gas emissions. As<br />
technology develops, however, renewable<br />
energy sources may become more viable and<br />
more import than efficiency measures.<br />
INITIATIVES<br />
As noted above, energy reduction initiatives<br />
reduce our carbon footprint. Rockline has<br />
taken steps to switch to energy sources that<br />
are more efficient:<br />
Our Springdale, Ark., facility purchased<br />
battery-electric forklifts.<br />
Our Montville, N.J., facility recently purchased<br />
its first battery-electric forklift. Although the<br />
facility still has some propane forklifts, this<br />
purchase is the first in an effort to phase out<br />
propane.<br />
Our Booneville, Ark., facility installed a<br />
geothermal heating and cooling system which<br />
went online in June 2011.<br />
LIGHTING REDUCTION - LED<br />
Energy reduction initiatives are perhaps the best way for<br />
Rockline to meet both our energy use and greenhouse<br />
gas emissions targets. As a result, each of our facilities<br />
has undertaken efforts to reduce energy consumption<br />
from lighting. One of our largest facilities, Blue Mountain<br />
Lake (BML) in Booneville, Ark., has undertaken the task of<br />
transitioning the lighting in its manufacturing and chemical<br />
mix facilities from halide light fixtures to high-efficiency<br />
LED high bay fixtures.<br />
Previously, the BML facility’s prodouction area was lit by<br />
125 400-watt halide lights, each of which burned 24 hours<br />
per day. These halide lights were replaced with 150-watt<br />
DuroLite fixtures manufactured by Dialight. The transition<br />
took place over a 6-month period from July 2010 to<br />
December 2011.<br />
The benefits were apparent as soon as the project was<br />
completed. “Employees have noticed that it is cooler, and<br />
they like the light produced by the LEDs better than the<br />
old lights,” says Nick Santoleri, Rockline’s vice president<br />
of global wet wipes manufacturing. “It’s not only more<br />
uniform, but the crisp white light is easier on the eyes.”<br />
The ease of installation was another benefit. “The<br />
installation went very smoothly with minimal interruption to<br />
our manufacturing process,” says Santoleri. “The beauty<br />
of it is that the new fixtures use all standard plugs, so there<br />
was no need for re-wiring during the retrofit.” In addition<br />
to the reduction of energy, the new lights reduced the heat<br />
load, thus reducing HVAC requirements by 5 percent. This<br />
represents a significant capital savings to the project.<br />
The Booneville facility also houses one of Rockline’s<br />
distribution centers. In conjunction with the lighting<br />
upgrade, the distribution center (DC) also underwent a<br />
transition to high efficiency fluorescent (HEF) lighting with<br />
motion sensors. The measure has already reduced energy<br />
consumption in the DC by 75% compared to FYE 2009.<br />
Following the success of the BML program, Rockline’s<br />
other Arkansas facility, in Springdale, also transitioned its<br />
warehouse to high-output fluorescent lights.<br />
15 16<br />
Nick Santoleri
WASTE<br />
WATER<br />
WET WIPES<br />
Rockline defines wastewater as any water that is not a<br />
component of the products we manufacture. For our<br />
wet wipe products, water is a major component of the<br />
lotion—in some cases, over 99 percent.<br />
The majority of the lotions found in Rockline products are<br />
manufactured on-site in our chemical mix departments,<br />
though a small percentage of the lotions come in<br />
portable, reusable totes and are pumped into the<br />
production lines directly. Because the amount and type<br />
of lotions used in our products are largely determined<br />
by our customers, we have chosen instead to focus on<br />
increasing the efficiency of our water use, an area over<br />
which we have more direct, operational control.<br />
COFFEE FILTERS AND BAKING CUPS<br />
Our coffee filter production uses considerably less water<br />
than wet wipes, and there is no water contained in the<br />
finished product. The main source of water use in our<br />
coffee filter operations is steam, which we use as a<br />
processing aid to give our basket-style coffee filters and<br />
baking cups their distinctive “fluted” shapes. No water is<br />
used in the production of cone-style filters.<br />
QUALITY AND EMPLOYEE CONSUMPTION<br />
Outside of finished goods, we use water for a range of<br />
other purposes. Our products undergo extensive quality<br />
testing before we ship them for public consumption,<br />
and many of these tests require water. Furthermore, we<br />
Water Usage<br />
2009<br />
2011<br />
Change 2010 Not to scale.<br />
Incoming water<br />
+1.3%<br />
179,152<br />
189,016<br />
181,504<br />
Water used in products –.01%<br />
104,198<br />
102,957<br />
103,566<br />
% of water used in products –.02<br />
58.2%<br />
54.5%<br />
57.1%<br />
Non-product water use +4.3%<br />
74,955<br />
86,058<br />
78,138<br />
+2.1%<br />
1.832<br />
2.061<br />
1.870<br />
All totals are in cubic meters (m3), except for per-unit water use, which is in liters (L).<br />
WASTE<br />
WATER<br />
GOAL -5%<br />
ACTUAL<br />
+2%<br />
regularly clean and sanitize our equipment, and this<br />
also requires the use of water. Rockline will never<br />
sacrifice quality to save water, but focusing on more<br />
efficient water use, even in testing and cleaning, is<br />
nevertheless a priority.<br />
RISKS<br />
A global scarcity of inexpensive, easily accessible<br />
freshwater could pose a risk in the long term as it<br />
is a major component of our operations, including<br />
the single largest ingredient in our wet wipe lotions.<br />
Additionally, even though our manufacturing<br />
facilities are currently located in areas with abundant<br />
freshwater, risks such as higher costs and capital<br />
expenses could arise if we expanded our operations to<br />
areas with poor access to freshwater.<br />
OPPORTUNITIES<br />
Rockline’s largest opportunity to decrease wastewater<br />
exists in our manufacturing processes. In 2010, for<br />
the first time since our program’s inception in 2008,<br />
we saw our wastewater usage decline. One major<br />
initiative that contributed to this decline was a timed<br />
meter that was installed on a flushing system at our<br />
Sheboygan, Wis., manufacturing facility. Previously,<br />
the system had run around the clock, while the meter<br />
ensures that it now runs in short, controlled intervals.<br />
In addition, as part of the mandatory sustainability<br />
training course that all Rockline associates must<br />
complete, we challenge our associates to look for<br />
and report areas where water is running without a<br />
meter and to identify processes where water can be<br />
conserved.<br />
INITIATIVES<br />
Our Redditch, U.K., facility has begun a formal<br />
review of lotion flushes which are a part of machine<br />
changeovers between products.<br />
Wastewater at the U.K. facility<br />
Reducing wastewater has historically been a challenge<br />
for Rockline. Though we were able to reduce our usage<br />
this year compared to our fiscal year ending in 2010, we<br />
have been unable to beat our baseline usage from our<br />
fiscal year 2009.<br />
One bright spot in wastewater reduction at Rockline<br />
comes from our Redditch, U.K., facility. Wastewater<br />
usage at the U.K. facility was down 35 percent this year<br />
as compared to last year, and the facility is halfway<br />
to meeting its 2015 goal of a 5 percent reduction.<br />
“Reducing liquid changeovers per standard unit has<br />
been the key to driving down our wastewater figure,”<br />
says Bill Goodall, green team lead for the U.K. facility.<br />
It deserves mention that under Bill’s leadership, the<br />
U.K. facility has established itself as a leader in our<br />
environmental sustainability efforts. The U.K. is on track<br />
to meet all of its 2015 goals, and saw improvements in<br />
key areas across the board.<br />
”Everyone on our team deserves recognition,” says<br />
Goodall. “All of our accomplishments this year would<br />
not have been possible without their effort and<br />
commitment to our program.” The U.K. became the first<br />
Rockline plant to utilize waste-to-energy incineration,<br />
sending its non-recyclable waste to power a local<br />
concrete kiln. Furthermore, the U.K. has experimented<br />
with a variety of innovative initiatives, including painting<br />
a hallway white to reduce lighting requirements and<br />
locking or removing some trash cans to encourage<br />
associates to dispose of waste in the proper bins.<br />
Through our monthly green lead conference calls, our<br />
other facilities have begun considering ways to adopt<br />
many of these initiatives — a combination of innovation<br />
and information-sharing that is sure to help us meet our<br />
increasingly aggressive organizational goals.<br />
17 18<br />
Bill Goodall
SOLID<br />
WASTE<br />
SOLID WASTE<br />
Waste is literally the inefficient use of<br />
resources, and when it occurs, it drives up the<br />
cost of the products Rockline produces. For<br />
this reason, Rockline focuses on measuring,<br />
reducing, and eliminating waste from our<br />
manufacturing processes to provide better<br />
value to our customers.<br />
Rockline defines solid waste as all waste<br />
leaving our facility regardless of how it is<br />
generated or handled. For example, our<br />
coffee filter production generates a high<br />
amount of waste because the round filters are<br />
cut from square sheets of paper. Even though<br />
the paper scrap is recycled, it is still considered<br />
waste, because a truly efficient process would<br />
use all of the paper. In short, while recycling<br />
waste is better than landfilling it, it would be<br />
better still not to have anything to recycle at<br />
all.<br />
RISK<br />
Solid waste represents virgin natural resources<br />
that are harvested but ultimately unused or at<br />
least utilized in a less-than-optimal manner. As<br />
the demand for virgin raw materials continues<br />
to escalate with growing populations and<br />
economies around the world, key resources<br />
may soon become scarce or even nonexistent.<br />
As the scarcity of virgin raw materials increases<br />
so costs will increase as well, lowering the<br />
FILTERS<br />
SOLID<br />
WASTE<br />
GOAL -5<br />
ACTUAL<br />
demand for our products relative to substitute<br />
goods.<br />
OPPORTUNITY<br />
As long as waste exists, there is opportunity<br />
to reduce it. Rockline’s environmental<br />
sustainability program tracks solid waste<br />
monthly and has goals set to reduce scrap at<br />
each facility. Every step Rockline takes toward<br />
reducing solid waste relieves a portion of the<br />
demand placed on natural resources and makes<br />
our products more attractive economically.<br />
INITIATIVES<br />
Our Sheboygan, Wis., facility rebuilt a coffee<br />
filter production line and reduced solid waste<br />
by 66 percent.<br />
Our Montville, N.J., facility is rebuilding a coffee<br />
filter production line to increase efficiency and<br />
reduce scrap.<br />
Solid waste represents virgin<br />
natural resources that are<br />
harvested but ultimately<br />
unused or at least utilized in<br />
a less-than-optimal manner.<br />
-3<br />
GOAL -20<br />
ACTUAL -12<br />
Business unit<br />
Coee lters<br />
STEPHEN BENDE AND SOLID WASTE<br />
When it comes to reducing solid waste and landfill rate, Stephen Bende, the production operations<br />
manager at our Montville, N.J., coffee filter facility, has some significant challenges. “Rockline has<br />
been making coffee filters a long time, and the scrap rates are fairly predictable,” says Bende.<br />
But this familiarity hasn’t stopped our New<br />
Jersey plant from making significant strides in<br />
its waste reduction efforts. For instance, two<br />
years ago, the facility was sending a 40-yard<br />
load of waste to landfill every week. Today, they<br />
only send a load to landfill once every two and<br />
a half months. And they aren’t stopping there:<br />
Bende and his team are hard at work finding<br />
solutions for the remaining landfill waste.<br />
They’re even getting some local recognition for their efforts. In November 2010, the Morris County<br />
Municipal Utilities Authority of New Jersey recognized Rockline’s New Jersey facility with an award<br />
for its recycling efforts. “According to the township of Montville, which nominated Rockline for the<br />
award, Rockline New Jersey is in a class by itself among local businesses for its waste-handling and<br />
recycling procedures,” says Bende.<br />
Many of the staff at the New Jersey facility are personally committed to sustainability. When the<br />
township’s recycling coordinator helped Bende find a nearby recycling center that would take all of<br />
the plant’s old computers at no cost, Bende used his own truck to transport the equipment to<br />
the center.<br />
This commitment to sustainability is producing results. New<br />
Jersey’s landfill rate has dropped for three years in a row and<br />
hit a new low in 2011 at just over 1 percent.<br />
19 20<br />
Wet wipes<br />
2009<br />
2011<br />
Change 2010 Not to scale.<br />
–5.9%<br />
12,013<br />
11,328<br />
11,309<br />
–3.2%<br />
0.537<br />
0.515<br />
0.520<br />
–5.2%<br />
8,424<br />
8,255<br />
7,983<br />
–12.1%<br />
0.454<br />
0.417<br />
0.399<br />
Totals are in metric tons (MT). Per-unit totals are in kilograms (kg).<br />
Stephen Bende
LANDFILL<br />
LANDFILL<br />
LANDFILL<br />
GOAL -5<br />
ACTUAL<br />
GOAL COMPLETED<br />
Ideally, Rockline would like to eliminate solid<br />
waste entirely from its production processes, but<br />
where this is not yet feasible or cost-effective,<br />
Rockline’s goal is to handle waste in a way that<br />
has the smallest impact on the environment.<br />
Rockline has a three-tier prioritization system<br />
for handling waste: Recycling, waste to energy<br />
incineration, and landfill. Through the first two<br />
tiers, we hope to derive the greatest benefit<br />
from scrap material and prevent it from reaching<br />
landfill.<br />
Our landfill avoidance initiatives are captured in<br />
the landfill rate metric. To calculate our landfill<br />
rate, we divide the amount of waste sent to<br />
landfill by the total amount of waste leaving our<br />
facilities (which includes landfilled waste as well<br />
as recycled waste, waste incinerated for energy<br />
recapture, and waste donated for reuse). The<br />
resulting metric is expressed as the percentage of<br />
waste diverted from landfill.<br />
-7<br />
OPPORTUNITIES<br />
The greatest opportunity Rockline has in<br />
diverting waste from landfill is finding consumers<br />
downstream who value our waste. In 2011,<br />
we met with numerous companies who could<br />
consume our waste for a variety of uses. Our<br />
Arkansas facilities have partnered with a company<br />
that takes our solid waste, separates plastics<br />
and other materials for recycling, and uses the<br />
remainder of the material for waste-to-energy<br />
incineration. Over the next year, Rockline will<br />
continue to examine avenues for repurposing our<br />
solid waste.<br />
INITIATIVES<br />
Our Booneville, Ark., facility completed installation<br />
of a baler system which will be used to separate<br />
solid waste materials and help divert recyclable<br />
materials from landfill.<br />
Our Sheboygan, Wis., facility has partnered with<br />
a local plastic molder to divert an estimated 120<br />
tons of plastic waste annually from landfill. The<br />
plastic waste is ground and used in co-injection<br />
products.<br />
Our Redditch, U.K., facility has increased its wasteto-energy<br />
incineration efforts by relocating their<br />
compactor and restricting traditional disposal of<br />
burnable waste in their warehouse. Landfill waste<br />
pickup has reduced to appointment pickups due<br />
to the infrequent necessity of landfill disposal.<br />
Disposal method<br />
Landfilled<br />
RISK<br />
“Energy recapture and recycling gives a secondary<br />
purpose to waste that would have otherwise been<br />
There are two closely related risks associated<br />
landfilled.”<br />
21<br />
with landfilled waste: First, both geographic<br />
space available for landfills and the desirability<br />
of landfills are decreasing. Second, as both<br />
space and desirability decline, landfill costs will<br />
rise. Fees associated with landfill have already<br />
affected our U.K. facility. If a similar system was<br />
implemented in the United States, the costs<br />
associated with our solid waste disposal would<br />
have a substantial negative financial impact.<br />
Michael Gray Joel Slank<br />
Over the next year, approximately 3,500 metric tons<br />
of solid waste from the Springdale and Booneville<br />
facilities will be diverted from landfill. Though<br />
Rockline has designed landfill out of its waste<br />
disposal practices, potential landfilling could occur<br />
in the event of unforeseen disruptions of service.<br />
Should this occur, Rockline will be transparent with<br />
our stakeholders regarding our landfill usage.<br />
22<br />
Recycled<br />
Landfill rate<br />
2009<br />
2010 2011<br />
Change Not to scale.<br />
–22%<br />
7,971<br />
7,240<br />
6,251<br />
–3%<br />
12,466<br />
12,196<br />
12,156<br />
—<br />
0<br />
148<br />
884<br />
–7<br />
39%<br />
37%<br />
32%<br />
All totals are in metric tons (MT).<br />
Landfill rate is the percentage of total solid waste that was sent to landfill.<br />
implemented processes to divert 100 percent of<br />
Our Sheboygan, Wis., facility began shipping<br />
their waste from landfill. Through a partnership with<br />
plastic nonwoven waste to a packaging company, Cassville, Mo. based Marck Recycling, all waste<br />
who uses the material to produce fuel pellets. leaving those two facilities will either be recycled or<br />
Our Sheboygan, Wis., facility purchased a bailer incinerated for energy recapture. The energy that is<br />
which will allow us to divert an estimated 200 captured from incineration will typically be used to<br />
tons of plastic stretch wrap annually. Stretch wrap power homes and businesses in the Tulsa, Okla., area.<br />
is used the palletization process and is the clear<br />
plastic used to hold loads together.<br />
Our Sheboygan, Wis., facility began recycling<br />
printer toner cartridges.<br />
ZERO LANDFILL<br />
Designing waste out of our processes and<br />
products is one of Rockline’s core sustainability<br />
aspirations. Unfortunately, we’re not there yet,<br />
and as a result, we must handle the waste from<br />
our operations in a way that is best for the<br />
environment and our stakeholders.<br />
This year, two of our manufacturing facilities—<br />
in Springdale, Ark., and Booneville, Ark. —<br />
“Taking the Springdale facility to zero<br />
landfill hasn’t been easy, and it has required<br />
a lot of hard work from many of our<br />
associates,” said Michael Gray, the facilities<br />
manager of Rockline’s Springdale plant. “I’m<br />
proud of this accomplishment as we do our<br />
part to divert our waste from landfill.”<br />
Both Springdale and Booneville expect to achieve<br />
zero landfill status by October 2011.<br />
“While reducing waste at the operations level is<br />
a high priority, we must ensure that the waste we<br />
produce is disposed of responsibly,” says Joel<br />
Slank, the general manager of the Springdale plant.
TRANSPOR-<br />
TATION<br />
TRANSPORTATION<br />
Rockline evaluates the environmental<br />
impact from its transportation operations<br />
by measuring greenhouse gas emissions<br />
from the outbound transport of finished<br />
goods. Rockline utilizes all major modes<br />
of transportation to ship finished goods,<br />
including truck, rail, ocean, and air freight.<br />
Section 6.4a Outbound Shipping<br />
Outbound Shipping<br />
Truckload<br />
Less than truckload<br />
Rail<br />
Ocean (container ship)<br />
Air<br />
Total<br />
Change<br />
-22<br />
-35<br />
+50%<br />
-64%<br />
-13%<br />
-22%<br />
All totals are in thousands of tonne-kilometers<br />
Section 6.4c Outbound Shipping Footprint<br />
Outbound Shipping<br />
Truckload<br />
Less than truckload<br />
Rail<br />
Ocean (container ship)<br />
Change<br />
–22%<br />
–35%<br />
+50%<br />
-64%<br />
2009<br />
89,626<br />
32,134<br />
19,002<br />
21,520<br />
48<br />
162,330<br />
2009<br />
7,708<br />
3,310<br />
608<br />
280<br />
Bars indicate relative change only.<br />
2010 2011 Not to scale.<br />
75,997<br />
25,958<br />
25,443<br />
16,808<br />
27<br />
144,233<br />
69,804<br />
20,900<br />
28,430<br />
7,830<br />
42<br />
2010 2011<br />
6,536<br />
2,674<br />
814<br />
219<br />
127,006<br />
6,003<br />
2,153<br />
910<br />
Bars indicate relative change only.<br />
Not to scale.<br />
For each of the shipping modes utilized,<br />
Rockline has established a per-tonnekilometer<br />
greenhouse gas emissions factor.<br />
The factors for all modes are based on<br />
published sources, with the exception of lessthan-truckload<br />
(LTL) shipping. As there is no<br />
standardized method of estimating carbon<br />
emissions from LTL shipments, Rockline adds<br />
a 20 percent premium to the truckload factor<br />
to account for the extra distance that LTL<br />
shipments usually travel.<br />
25.00%<br />
102<br />
29<br />
Air<br />
-13%<br />
16<br />
25<br />
11,935<br />
Total<br />
-23%<br />
10,258<br />
9,193<br />
0.074<br />
Per tonne-kilometer -1.6%<br />
0.071<br />
0.073<br />
All totals in metric tonnes (MT) of CO2-equivalent emissions, except for per-unit totals,<br />
which are in kilograms of CO2-equivalent emissions.<br />
Rail as a Percent of all Truckload<br />
All items for which Rockline supplies (on average) more<br />
than two pallets per month must be ordered in full-pallet<br />
quantities.<br />
All items for which Rockline supplies (on average) less<br />
than two pallets per month must be ordered in full-layer<br />
quantities — not in case-by-case amounts.<br />
Rockline’s customer service advocates work with customers<br />
who purchase these items to ensure the alignment of pallet/<br />
layer quantities.<br />
Ship intelligently – Rockline’s logistics team is<br />
constantly seeking new ways to reduce fuel<br />
consumption and optimize shipments. A few of the<br />
ideas introduced this year are:<br />
Partnering with one of our Canadian customers to<br />
make shipments more efficient. Previously, Rockline<br />
shipped finished goods from our manufacturing<br />
facility in Springdale, Ark., to a warehouse in Toronto,<br />
where the customer forwarded them to its distribution<br />
centers throughout Canada. Today, we bypass the<br />
Currently, outbound shipping is the<br />
22.50%<br />
This initiative is designed to reduce LTL utilization, which<br />
Toronto warehouse and ship directly to the customer’s<br />
only component of Rockline’s Scope 3<br />
20.00%<br />
consumes approximately 20 percent more fuel than tradition<br />
distribution centers, resulting in an estimated 30<br />
emissions for which we have developed a<br />
17.50%<br />
long-haul modes of transportation.<br />
percent reduction in fuel consumption.<br />
comprehensive tracking system, and the<br />
15.00%<br />
only component for which we have set<br />
reduction goals. In the future, as standards<br />
for Scope 3 emissions continue to develop<br />
12.50%<br />
10.00%<br />
Ship efficiently – in order to favor more efficient modes of<br />
transportation, Rockline continued to build upon the poolpoint<br />
warehouse network we established in 2010. This year,<br />
Partnering with our U.S. customers to optimize<br />
shipping quantities. When we discovered that two of<br />
our largest U.S. customers were utilizing LTL shipping<br />
and our sustainability program continues to<br />
7.50%<br />
pool-point shipments increased 90 percent. Pool-point<br />
on a regular basis, we encouraged their replenishment<br />
expand, we will determine whether to begin<br />
5.00%<br />
shipping avoids the inefficient hub-and-spoke model of LTL<br />
teams to order in larger quantities less often. This<br />
measuring additional Scope 3 emissions.<br />
2.50%<br />
by consolidating shipments that are destined for the same<br />
solution was made possible by co-warehousing<br />
0.00%<br />
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7<br />
geographic region. Only after the shipments arrive in the<br />
products from our different manufacturing facilities<br />
RISKS<br />
The primary risk associated with today’s<br />
2010<br />
Months<br />
2011<br />
region are they broken apart and given to local LTL carriers.<br />
This minimizes the use of long-haul LTL shipments. This year,<br />
in centralized locations, which enabled us to deliver<br />
within the required lead times.<br />
modes of transportation is the increasing<br />
Rockline completed its objective of establishing a national<br />
23<br />
scarcity of fossil fuels, which is causing the<br />
network of pool-point locations.<br />
24<br />
Percent of Weight Shipped via Rail<br />
TRASPOR-<br />
TATION<br />
GOAL -10<br />
ACTUAL<br />
-1<br />
cost of transportation fuels to rise. The majority of Rockline’s<br />
transportation is handled via heavy trucks and tractor-trailer<br />
vehicles, which use conventional motor diesel. The rest of<br />
our freight operations (air, rail, and ocean freight) also rely<br />
heavily on fossil fuels.<br />
OPPORTUNITIES<br />
The opportunities for reducing the environmental impact<br />
of our transportation operations fall into three primary<br />
categories:<br />
Ship less – both inbound and outbound<br />
Ship efficiently – favor efficient modes over less efficient ones<br />
Ship intelligently – leverage logistical solutions to reduce fuel<br />
consumption.<br />
INITIATIVES<br />
Ship less – Optimizing raw materials and outbound<br />
shipments to ensure trailers are full will help reduce the<br />
frequency of shipments Rockline makes. This year, we<br />
introduced our Transportation Efficiency Initiative to our<br />
customers. The initiative works as follows:<br />
Along with pool-point shipping, Rockline also<br />
increased its utilization of intermodal shipments by<br />
64 percent. Intermodal shipments combine truckload<br />
pulls with rail freight to make long-distance shipments<br />
more efficient: By utilizing rail freight in place of<br />
standard trucks, Rockline can cut greenhouse gas<br />
emissions on identical shipments by up to 50 percent.
PRODUCT<br />
LEVEL<br />
SCORING<br />
Ever since Rockline first began taking steps<br />
to become a more sustainable company,<br />
we have known that our products place<br />
a burden on the environment that is<br />
comparable to our operations. At the<br />
time, however, we had no easy way to<br />
measure that impact in the same way we<br />
could measure things like energy use,<br />
water use, greenhouse gas emissions, and<br />
solid waste — much to the chagrin of our<br />
sales and marketing teams, who frequently<br />
asked whether a given product change<br />
made that product better or worse for the<br />
environment.<br />
At our annual sustainability summit in<br />
2010, we began to rectify this problem by<br />
conceptualizing a tool that could measure<br />
the environmental impact of our products.<br />
This tool, tentatively called a Green Score,<br />
would help Rockline product managers<br />
make educated decisions in product design.<br />
In order to make the Green Score relevant<br />
to our organization, we held a crossfunctional<br />
team meeting that included<br />
representatives from our purchasing,<br />
product development, IT, sales and<br />
marketing, and operations departments.<br />
The meeting was facilitated by an external<br />
consultant who would use the ideas and<br />
principles from the meeting to design the<br />
Green Score.<br />
It quickly became clear that the process<br />
of designing and implementing the Green<br />
Score was as important as the Green Score<br />
itself. As a result, we decided to design<br />
and implement the Green Score in stages.<br />
Each stage will incorporate greater levels of<br />
detail across the life cycle of the product,<br />
from raw materials to disposal. The first<br />
phase of the Green Score was completed in<br />
June 2011 and will be integrated into our<br />
product development process.<br />
PHASE I-A: DESIGN<br />
The first phase of the Green Score allows<br />
the user to view the environmental impact of<br />
changes in nonwoven suppliers (based upon<br />
supplier survey data collected in our fiscal year<br />
ending 2010 and data in publicly available<br />
reports), material fiber blends, and packaging<br />
components. The Green Score takes into<br />
account greenhouse gas emissions, energy use,<br />
solid waste, and water use, and uses them to<br />
generate a combined score, which ranges from<br />
1 (greatest environmental impact) to 10 (lowest<br />
environmental impact). The scores are based<br />
upon Life Cycle Analysis (LCA) data for the<br />
various fibers and polymers used in our products.<br />
PHASE I-B: INTEGRATION<br />
The Phase I design will be integrated into the<br />
product design process with the goal that all<br />
products are evaluated from an environmental<br />
impact standpoint before being commercialized.<br />
Over the next year, our goal is to evaluate<br />
50 percent of all new products or major<br />
modifications prior to commercialization.<br />
PHASE II AND III<br />
Future iterations of the tool are based upon<br />
internal and external demand. The tool is<br />
designed in such a way that more raw material<br />
suppliers, more fiber variations, and more<br />
packaging materials can be added. We also<br />
have the capability to add more metrics, such as<br />
landfill or biodegradability. We will decide how<br />
to proceed with future versions using feedback<br />
from our current implementation.<br />
25 26
CULTURE<br />
SITE COMMUNICATION<br />
Integrating sustainability into our culture<br />
requires consistent communication with our<br />
manufacturing facilities. This year, our program<br />
took advantage of two existing communication<br />
tools at Rockline — our monthly newsletters and<br />
our internal television network — to provide all<br />
of our associates more information about our<br />
sustainability program.<br />
We started by adding sustainability content<br />
to Rockline’s monthly newsletter. The<br />
newsletter, which is distributed to each of our<br />
manufacturing sites, contains articles about the<br />
company’s performance, new projects, safety<br />
and quality initiatives, and associate activities,<br />
and is widely read throughout the organization.<br />
In each issue, we’re now publishing an<br />
informative and entertaining article that covers<br />
a key sustainability metric, describing why the<br />
metric was chosen and how it is measured.<br />
Each article also includes the environmental and<br />
financial ramifications of our efforts.<br />
The objective is to clearly communicate the<br />
consequences of wasting resources and assign<br />
value to the waste in hopes that the reader<br />
comes away with a fresh perspective and a more<br />
sustainability-minded view of our operations.<br />
“Increasing our environmental awareness<br />
organizationally is a key to reducing our<br />
impact,” says David Cook, a sales director in<br />
Rockline’s contract manufacturing division, and<br />
member of the corporate sustainability steering<br />
committee. “Our customers and stakeholders<br />
demand that we continually improve our<br />
environmental performance. Communicating<br />
the fundamentals of sustainability and the<br />
impact our organization makes will only help us<br />
get better.”<br />
We also introduced a sustainability dashboard to<br />
Rockline TV, the internal television network that<br />
broadcasts important information to associates<br />
<strong>SUSTAINABILITY</strong> 101<br />
Sustainability 101 is an internal Rockline training<br />
program, designed in conjunction with Lakeshore<br />
Technical College in Cleveland, Wis., to educate<br />
Rockline associates on a variety of sustainability topics.<br />
The course, which lasts about two hours, includes an<br />
overview of sustainability, a summary of the internal<br />
and external factors driving our program, and a review<br />
of our key operational metrics.<br />
David Cook Kyleene Arias and Darryl Mrozinsky<br />
at each manufacturing site. The dashboard,<br />
which is customized to each manufacturing site,<br />
gives our associates a summary view of how their<br />
facility is performing against the organization’s<br />
key metrics—whether each metric is below the<br />
goal level (green), below last year but above<br />
the goal level (yellow), or above last year (red).<br />
The dashboard is updated monthly, and is also<br />
posted in static form on “green boards” in each<br />
manufacturing facility.<br />
During the course, a number of activities<br />
take place that allow the participants to<br />
collaborate with one another and submit ideas<br />
for sustainability initiatives. The instructor<br />
challenges the class to look for areas where<br />
waste is being created by processes that other<br />
people may not see. In a class of about 20<br />
associates, a number of unique and unexpected<br />
ideas can arise.<br />
“Every Rockline associate has a unique<br />
perspective,” says Kyleene Arias, who helped<br />
translate the course into Spanish and taught<br />
Spanish-speaking staff. “Challenging people<br />
to come forward with ideas about where<br />
energy, water, or material is being wasted in<br />
their area will help Rockline reduce its overall<br />
environmental footprint.”<br />
But the class isn’t just an avenue for soliciting<br />
ideas — it’s also intended to build a culture<br />
of sustainability at Rockline. For many years,<br />
Rockline has had similar programs in place for<br />
quality and safety, and today the principles<br />
from those courses have become the standard<br />
practice at our company. Our hope is that we<br />
can eventually integrate sustainability at the<br />
same level.<br />
“Sustainability makes you think through<br />
projects and processes with efficiency in<br />
mind,” says Darryl Mrozinsky, the green team<br />
lead for Rockline’s Sheboygan, Wis., facility.<br />
“Educating and engaging our associates helps<br />
us create a culture where we minimize waste<br />
and focus on areas of inefficiency.”<br />
Over the past year, all of our current associates<br />
at each of our four U.S. facilities went through<br />
the training program. Next year, we will<br />
expand the use of the program: we will roll<br />
it out to our Redditch, England, facility, and<br />
also plan to integrate the course into the<br />
orientation program that our human resources<br />
department uses with all new associates.<br />
27 28
RAW<br />
MATERIALS<br />
IMPACTS<br />
As the use of Life Cycle Analysis and LCA-style thinking<br />
becomes more prevalent at Rockline, it is becoming<br />
increasingly clear that the greatest portion of our products’<br />
environmental impact is in the raw materials. At its core,<br />
Rockline Industries is a converter that processes and<br />
assembles raw materials into a final product. The energy<br />
and emissions generated by Rockline’s operations pale in<br />
comparison to the energy and emissions required to supply<br />
those raw materials, such as extracting minerals, harvesting<br />
timber, drilling for petroleum and other fossil fuels, and<br />
converting all of these resources into usable raw materials.<br />
Our most significant raw materials are:<br />
Nonwovens, which are made of various fiber<br />
blends, including:<br />
• Polyester fibers<br />
• Polypropylene fibers<br />
• Cellulose-based fibers<br />
Packaging:<br />
• Corrugated cardboard and other<br />
paperboard<br />
• Mixed- and single-resin plastics, including:<br />
• PET<br />
• HDPE<br />
• Polypropylene<br />
• Various types of LDPE film<br />
RISKS<br />
Any industrial process or consumer product that relies on<br />
fossil fuels is at risk. Consumption of petroleum-based<br />
resources continues to climb, and the supply is fixed, or<br />
possibly even declining. The majority of packaging and<br />
a great number of the fibers used in our products are<br />
derived from these increasingly scarce fossil fuels. If these<br />
trends continue, our materials will become more difficult<br />
and more costly to procure, driving up the cost of our<br />
finished goods and reducing the value we provide to our<br />
customers.<br />
OPPORTUNITIES<br />
Rockline has several opportunities to improve the<br />
sustainability of its raw materials, and many of them<br />
start with our primary suppliers. Rockline can:<br />
• Evaluate and engage our raw material suppliers to<br />
source and produce raw materials efficiently and from<br />
sustainable sources, including certified sources.<br />
• Reduce waste at the operational level, which will<br />
increase the efficiency of our raw material usage (per<br />
standard unit) and allow us to extract more value from<br />
the same quantity of materials.<br />
• Incorporate recycled and renewable inputs into our<br />
products. This will reduce or potentially even eliminate<br />
the demand for virgin raw materials, helping to stabilize<br />
unsustainable consumption trends.<br />
• Redesign key components like plastic tubs to be<br />
lighter and use less material. Not only will this improve<br />
our material use, but it will have downstream benefits<br />
like helping to increase transportation efficiencies and<br />
reducing the amount of municipal solid waste caused by<br />
our products.<br />
• Design products and packaging to be recyclable or<br />
compostable. This, too, is an opportunity to reduce<br />
municipal solid waste, as well as to provide value to our<br />
customers who serve environmentally-conscientious<br />
consumers.<br />
INITIATIVES<br />
This year, Rockline worked with an external<br />
consultant to build a product-level scoring tool which<br />
models trade-offs between various raw material<br />
inputs to help us evaluate product design from a<br />
sustainability perspective. Please see the Product<br />
Scoring Tool section for more information on<br />
this initiative.<br />
SUPPLIERS<br />
Supplier relations<br />
IMPACTS<br />
Given that the biggest environmental impact in<br />
the life cycle of our products is in the sourcing<br />
and processing of raw materials, Rockline must<br />
look across the supply chain for improvement<br />
opportunities and partner with its suppliers in<br />
innovative solutions. Everything from the inputs<br />
our suppliers use to the locations of their facilities<br />
to the way they do business carries through the<br />
life cycle and affects the sustainability of Rockline’s<br />
products.<br />
RISKS<br />
Making products that are truly sustainable<br />
throughout their life cycle depends more on<br />
implementing sustainable practices across<br />
the supply chain than any other aspect of our<br />
program. If we fail to recognize our supply chain as<br />
a significant factor in our products’ sustainability,<br />
then we risk missing one of the biggest sources of<br />
consumption throughout the life cycle.<br />
OPPORTUNITIES<br />
In 2010, Rockline surveyed the majority of our<br />
suppliers around the globe. This information has<br />
been used in developing the product scoring tool,<br />
annual supplier evaluations, and in analyzing the<br />
environmental sustainability maturity of our various<br />
raw material types. We will take this analysis to<br />
the next level in the upcoming year, developing<br />
a more dynamic approach to both evaluating and<br />
partnering with suppliers.<br />
INITIATIVES<br />
Since surveying our suppliers on the state<br />
of their sustainability efforts in 2010,<br />
Rockline has incorporated environmental<br />
sustainability as a factor into a number of<br />
our supplier reviews.<br />
Rockline also worked with suppliers<br />
who had no environmental sustainability<br />
program to begin the process of tracking<br />
key sustainability metrics and normalizing<br />
these metrics for production volume.<br />
We will continue to expand our efforts<br />
with suppliers where possible to bring<br />
a heightened sense of awareness about<br />
sustainability — and in so doing, plant the<br />
seeds for sustainability to grow within our<br />
supply chain.<br />
29 30
MANAGEMENT<br />
SYSTEMS<br />
IMPACTS<br />
The culture of sustainability at an organization — everything<br />
from the emphasis that senior management gives to<br />
sustainability to its presence in the day-to-day lives of our<br />
associates — goes a long way toward determining the success<br />
of our sustainability program. Rockline can set goals, plan<br />
for life-cycle assessments, and build product- and processimprovement<br />
tools, but if these components are never<br />
implemented, our efforts are for naught. In short, people<br />
drive sustainability. They lead efforts to make us a better<br />
manufacturer, they start the discussions with customers and<br />
suppliers about positive environmental change, and they bring<br />
the insights that help drive our company forward.<br />
RISKS<br />
Without a viable culture of sustainability, we risk being all<br />
talk and no action. We must consistently strive to keep our<br />
associates engaged and aware of sustainability if we wish to<br />
see continuous improvement in our organization. Additionally,<br />
unless we push ourselves to become consistently more<br />
sustainable, we risk failing to meet our customers’ increasing<br />
expectations, and we risk losing a key competitive advantage.<br />
OPPORTUNITIES<br />
With employee engagement, we can always do better. The<br />
biggest opportunity we have at Rockline is to develop effective<br />
and motivational methods that make sustainability personal<br />
and achievable for our associates, so that they become the<br />
biggest advocates for a greater culture of sustainability.<br />
INITIATIVES<br />
Sustainability Training. This year we<br />
implemented our Sustainability 101 training<br />
program. Please see the Culture spread for<br />
more details.<br />
Green Teams. Each of our manufacturing<br />
facilities has a green team, headed by a green<br />
lead, which is responsible for tracking and<br />
implementing site initiatives and communicating<br />
updates about each site’s progress to its<br />
associates. The green leads also meet with the<br />
global environmental sustainability coordinator,<br />
logistics, and IT on a monthly basis to discuss<br />
updates on initiatives and metrics, and share<br />
information across the entire company.<br />
Site communication. Please see the Culture<br />
spread for details on the various efforts made<br />
this year to keep our associates engaged and<br />
educated in environmental sustainability.<br />
Ken Borowski<br />
31 32
LOOKING<br />
AHEAD<br />
Thank you for taking the time to read our third annual<br />
sustainability report – our hope is that you hve a better<br />
understanding of how Rockline is doing its part to ensure our<br />
planet can sustain future generations.<br />
In last year’s report, our company set ambitious, multi-year<br />
sustainability goals for the first time. Although we still have<br />
a few years left to achieve these goals — they come due in<br />
2015 — we have already made significant progress on many<br />
of them. We are proud of our achievements, and strongly<br />
believe we’re headed in the right direction.<br />
We’re also looking forward to the coming year — we have<br />
many initiatives in play that will help us get another step<br />
closer to achieving all of our 2015 goals. These initiatives<br />
include the integration of a Sustainability 101 training course<br />
into our new-associate orientation; implementation of a new<br />
product sustainability scoring tool; and a continued focus on<br />
our operational metrics such as energy use, greenhouse gas<br />
emissions, and solid waste.<br />
Based on past experience, we know the upcoming year will<br />
bring both success and failure. But we believe<br />
that if we remain determined, we will eventually<br />
realize not only our goals, but an environment<br />
that is better and more sustainable than before.<br />
As always, we look forward to your feedback.<br />
The ongoing conversation we have with our<br />
stakeholders keeps us honest—and often sparks<br />
creative new ideas for our program!<br />
All the best,<br />
Josh Eldridge<br />
Global Environmental Sustainability Coordinator<br />
33 34
<strong>ENVIRONMENTAL</strong><br />
<strong>SUSTAINABILITY</strong><br />
changing our<br />
environmental<br />
footprint®