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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®

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