Benefits of an Environmental Management System Andrew Frisbie Wabash National Corporation

1. Benefits of an Environmental Management System Andrew Frisbie Wabash National Corporation

2. WABASH NATIONAL CORPORATION Company Overview • Company founded in 1985 • One of the largest truck trailer manufacturers in North American • Over 50,000 trailers and $1 billion in sales • Environmental Management System started in 2004 • First trailer manufacturer in North America to be ISO 14001 in 2005

3. Our products move the world….

4. WHY IMPLEMENT AN EMS ? Before our EMS, we were being managed by our environment requirements: • Needed to stay in compliance. • Needed to keep track of regulations/laws. • "Person Dependent“ rather than "System Dependent" • No framework to move beyond compliance. • Environmental was just one of many areas of focus. • No alignment with overall corporate planning. • No good measure of current performance. • Many individual parts in place – not unified under the EMS umbrella!

5. WHY IMPLEMENT AN EMS ? Systematic and Recognized Method to: • Stay Legal • Increase Corporate Social Responsibility • Drive Sustainability Initiatives • Drive Down the Cost of Operations • Increase Green Marketing Initiatives

6. HOW TO IMPLEMENT AN EMS EMS is a Plan/Do/Check/Act System PLANNIG!!! • Environmental Policy • Statement of our commitment • Communicate it! • Employees to understand it • Aspects • Review of operations • Their impact • Where to focus resources

7. HOW TO IMPLEMENT AN EMS • Legal and Other Requirements • Capture and document for operations • How to stay current • Objectives and Targets • What do we want to do to improve? • Focus and align efforts • Take credit for "good things” • Framework to ensure achieve goals

8. HOW TO IMPLEMENT AN EMS DOING!!! • Resources, Roles and Responsibility • Defined/assigned roles within the system • Involves others (not just EH&S role) • Competence, training and awareness • Ensure employees and contractors can do their job • Aware of their role • Protects company • Communication • Define what/how we communicate • Who will do it

9. HOW TO IMPLEMENT AN EMS • Control of Documents/Records • Big part of environmental field • Ensure current documents are being used • Permits • Work instructions • Emergency procedures • Operational Control • Document critical work practices • Maintain compliance • Not re-inventing the wheel • Emergency Preparedness and Response • Review potential emergency situations • Develop plans to respond • Ensure testing and drilling

10. HOW TO IMPLEMENT AN EMS CHECKING!!!! • Monitoring and Measurement • Identify critical metrics • Set baseline for improvements • Ensure maintain improvements • Evaluation of Compliance • Auditing • Regular reviews of system • Helps to ensure compliance and performance • Corrective and Preventive Actions • Ensure corrected or prevented • Identify trends  • Involve other departments

11. HOW TO IMPLEMENT AN EMS ACT…………. • Management Review • Active senior management involvement • Drive continual improvement • Commitment of resources • Alignment of efforts

12. WHY IMPLEMENT AN EMS? But, what are the outputs?

13. Corporate Social Responsibility For Indiana companies • Must have an environmental management system • Strong history of environmental compliance • “Better Environment, Better Business” • Voluntary, performance based leadership program • Commit to continuous environmental improvements • “Peer” reviewed and approved by IDEM

14. Stay Legal Environmental Stewardship Program Member • Benefits • Positive relationship with IDEM • More flexibility with IDEM • More responsive on permitting • Recognition for our associates • Networking with other ESP companies

15. Sustainability Initiatives Recycling/Reuse • Wood program to reduce waste sent to landfill • Reduction of over 250 tons of waste landfilled per month • Over 6 million pounds of wood recycled in 2008 • 16,000 mature trees and • 11,000 cubic yards of landfill space • While saving over $74,000 per year

16. Cost of Operations • When we talk about electricity, our bill is based on both peak and total usage • Cost varies due to multiple riders • Using January’s bill: • $18.1 per kW of peak 30 minute usage at North Plant • $0.032 per kWh of total usage • Cost is increasing! • Duke is projecting 9-14% increase from 2009 to 2010 • Cost Reduction Efforts • Focus on reducing overall energy consumption • Must also focus on reducing peak energy use

17. Tuesday, Feb. 10, 2009 Wednesday, Feb. 11, 2009 Cost of Operations Tuesday, Dec. 9, 2008 • Hourly electricity usage for two days in December. • Prior to concerted effort to shut down equipment and keep it off. • Manufacturing • Maintenance • Materials • Asset Protection • Manufacturing Engineering 1st Shift Wednesday, Dec. 10, 2008

18. Tuesday, Feb. 10, 2009 Tuesday, Dec. 9, 2008 Cost of Operations • Using Dec. 9th and Feb. 10th as an example, total usage was reduced from 87,992 kWh to 51,676 kWh (36,316 kWh). At a cost of $0.032 per kWh, this equates to $1,162 per day. • Driven by: • Extensive shutdown of equipment at end of shift • Coordination between departments • Management of compressed air leaks

19. Cost of Operations • Peak demand has dropped between 400 and 900 kW. At a cost of $18.1 per kW of peak demand, this equates to between $7,240 and $16,290 per month. • Reduction is being driven by: • Transformation reducing amount of equipment running at one time. • Shutting down other equipment • Management of our compressed air system • More efficient equipment

20. Green Marketing Initiatives • Sales and Marketing Advantage • Set us apart from our competition • Customer requests on environmental initiative • “Value” of cost neutral projects • EMS internationally recognized • EMS is valued by others

21. Wabash National Corporation Thank You! ISO 14001 Certified Environmental Stewardship Member