Freightliner Custom Chassis Corporation’s Zero Waste to Landfill Journey

1. Freightliner Custom Chassis Corporation’s Zero Waste to Landfill Journey

2. The Evolution of Environmental Responsibility at FCCC

3. Who We Are Freightliner Custom Chassis Corporation (FCCC) was formed in 1995 after Freightliner Corporation (now Daimler) acquired the Chassis Division of Oshkosh Corporation 289,000 sq. ft. facility 75 acres offering 227,400 sq. ft. of manufacturing and 33,600 sq. ft. of research, dynamometer and paint processes Employs approximately 500 team members within its manufacturing, engineering, sales/marketing and finance operations Registered to ISO 9001: 2008 quality standard Registered to ISO 14001: 2004 environmental standard FCCC manufactures Class 4 - 8 chassis for motorhomes, walk-in vans, commercial buses and school buses What We Do FCCC Aerial Photo

4. FCCC Customers Walk-in Van: FedEx, UPS, Penske, Ryder, Aramark, Cintas, G&K Services, AmeriPride, LDV, Con Edison, Canpar, Estafeta Commercial Bus: Caio, Stallion, Glaval, Champion, Supreme, Double K School Bus: Thomas Built Buses (another DTNA subsidiary) Motorhome: Winnebago, Coachmen, Tiffin, Forest River, Damon, Four Winds, Newmar, Fleetwood

5. Awards and Recognition The FCCC manufacturing facility served as the pilot plant for the Zero Waste to Landfill project initiated by DTNA. Awards and recognition: FCCC won the 2009 Daimler Environmental Leadership Award, presented in Stuttgart, Germany on March 25, 2010. FCCC is a member of the EPA’s WasteWise Program and awarded the 2010 Gold Achievement in December, 2010 for “Waste Reduction in the Workplace”. FCCC is a member of the South Carolina Environmental Excellence Program for sustaining a superior environmental management system and received the S.C. Earth Day award in April, 2010. FCCC is a member of the South Carolina Smart Business Recycling Program and was awarded in 2010 for its outstanding waste reduction and recycling efforts.

6. Awards and Recognition The FCCC manufacturing facility served as the pilot plant for the Zero Waste to Landfill project initiated by DTNA. Awards and recognition: FCCC was featured in Green Manufacturer Magazine for successfully achieving Zero Waste to Landfill status in the 2010 October/November Issue. FCCC was awarded 2010 Large Business Recycling Award by the South Carolina Department of Commerce in November 2010

7. Motivation for Implementation Daimler’s philosophy of “Shaping Future Transportation” is the motivation for FCCC to recognize ‘green’ challenges and opportunities. The selection of FCCC as the pilot facility for Zero Waste to Landfill efforts was the catalyst that not only changed the company culture, but also influenced the visions of employees, the community, suppliers, and vendors.

8. Zero Waste to Landfill Efforts: 2007 Solid Landfill Waste: - 100.37 pounds per chassis built 2008 Solid Landfill Waste: - 35.57 pounds per chassis built 2009 Solid Landfill Waste: - 8.39 pounds per chassis built 76.4% solid landfill waste reduction in 2009 vs. 2008 96.5% solid landfill waste-free in 2009 Recycling Containers on Production Line Returnable Packaging Recycling scrap metal Community Partnerships Recycling plastic at satellite facility

9. Achieved results and benefits of the implementation: • Through improved awareness and the successful implementation of waste reduction, returnable packaging and recycling at FCCC, solid landfill waste disposal has been eliminated. This improvement has also reduced overall disposal cost by over 60% per EQU. • FCCC’s recycling rate has increased from 74.8% in January 2008 to it’s current rate of over 98%. • Solid waste to landfill has declined from 150,000 lbs. monthly in January 2008 to a less than 10,000 lbs. monthly average through 2009. In October 2009, we achieved Zero.

11. Financial Impact of Waste Reduction/Recycling

12. Our Journey to ZWTL FCCC partnership with Gaffney High School to promote waste reduction 58% reduction in waste to landfill/EQU versus same time in 2007. 94.1% solid waste landfill free for September. 62.3% reduction in waste to landfill/EQU versus 2007 baseline. Finalized details with contractors for remaining waste stream recycling. FCCC selected as DTNA pilot facility for Zero Waste Initiative. Founded FCCC “Green Team” and Launched FCCC Env. Webpage on FCCC Online. FCCC awarded by South Carolina Smart Business Recycling for 2009 FCCC reaches Zero Waste to Landfill Plastics/Rubber recycling programs implemented. Jan 2008 Sept 2007 Oct 2007 Nov 2007 Dec 2007 Feb 2008 Mar 2008 April 2008 May 2008 June 2008 July 2008 Aug 2008 Sept 2008 Oct 2008 Nov 2008 Dec 2008 Jan - Sept 2009 Oct 2009 FCCC achieves 97.3% landfill waste free status for the month of July Registered for EPA WasteWise partnership. Began use of recycling centers in canteen areas. Recognized by EPA WasteWise for 2007 waste reductions. 42% reduction in waste to landfill/EQU versus same time in 2007. Visited Subaru (Indiana) to review waste reduction program. Accepted as partner to EPA WasteWise program. Facility-wide implementation of current comprehensive recycling programs. FCCC recognized as members of SCEEP and SC Smart Business Program Goal of zero waste to landfill for FCCC facility (Jan 2010). Cherokee County Recycling granted FCCC an on-site roll-off. FCCC awarded 2008 Employer Contract of the Year by SC Vocational Rehabilitation for recycling efforts and jobs produced.

13. Traditional Practices FCCC, like many other industries, filled local landfill sites with tons of solid municipal waste from our production processes. All waste generated was collected in single source containers then dumped. Easily accessible items such as cardboard and wood pallets were then pulled out and recycled.

14. FCCC Green Team December/January 2008 – A volunteer group of cross-functional employees gathered to develop a strategic plan for accomplishing Zero Waste to Landfill. The FCCC Green Team was formed. Freightliner Custom Chassis’ Green Team commits to providing a cleaner and healthier environment by reducing our overall footprint within our community. We will do this by continuously improving in our environmental awareness and processes.

15. Communication January 2008 – One of the first questions from the Green Team was, “How will we get this information that is discussed here out to everyone?” FCCC Green Team SharePoint

16. What do we already do? February 2008 – You can’t eliminate something if you do not know that it exist. GO & SEE DUMPSTER DIVE

17. What do we already do? February 2008 – What was in our trash cans? Teams 401/402 was selected to be a pilot area within FCCC because of the variety of trash found during our dumpster dive.

18. Standardization Chart Lets Get Started! February/March 2008 – Standardized identification was needed to easily identify recycling opportunities 42% WTL reduction

19. Lets Get Started! March 2008 – Implementation in Canteen and Break Areas

20. Other Reduction Opportunities 2008 – Corporate Returnable Packaging; Reduction of waste in restrooms

21. Borrow Proudly April 2008 – Benchmark and BORROW PROUDLY! We borrowed from “The Best”.

22. Sorting at Point of Use May-August 2008 – Having seen that it can be done, we realized that what we were doing just might work. We decided to maintain our current path toward ZWTL. We needed to sort recyclables at the point of use.

23. Sorting at Point of Use May-August 2008 – Plastics are collected in easily recognized color containers from point of use to centralized collection locations. 58% WTL reduction

24. Sorting at Point of Use May-August 2008 – Plastics are sent to South Carolina Vocational Rehabilitation for further segregation to increase our recycling rebates.

25. Partnerships Made October 2008 – A Cherokee County Recycling Center and FCCC partnership developed with the collection of PET drink bottles, mixed paper and front office cardboard. This donation of recyclables helps fund recycling in the county.

26. Benefits of Recycling 2008 – Scrap rubber hoses is recycled to manufacture playground mulch and other products, all made from 100% recycled rubber.

27. Spread the Culture 2009 - Present – Partnerships and mentor programs developed along the journey to ZWTL. These partnerships have fostered awareness and education toward a sustainable future for our community.

28. Poor attention to detail allowed recyclables to end up in local landfills. Compactor emptied 1-2 times daily at transfer site. General non-recyclable waste sent to LAST landfill transfer site drop. This load consisted of 5 weeks of non-recyclable waste. End in Sight October 2009 –A newly developed partnership with VLS Recovery provided our last need to remove the “leftovers” from the landfill.

29. Celebrate Success!!! October 2009 – FCCC celebrated the success of achieving ZERO Waste to Landfill!!!!

30. Covering Sustainability February 2009 – The need for Continuous Improvement and Sustainability of our Environmental Management System depended on the employees understanding their individual impacts to the environment.

31. Environmental Impacts Covering Sustainability 2009 – New employee orientation training includes Aspect/Impact training and recycling standards. Recycling has become a standardized ISO 14001 procedure with annual refresher training for all FCCC employees.

32. Covering Sustainability 2009 - Present – Six Sigma Methodology and LEAN business practices help recognize and eliminate waste, such as paper usage in production and excess nylon hose scrap.

33. THANK you “FCCC has come a long way. You used to see very little attempts in recycling, but now employees are more aware not only at work but also at home.” Brian Cody (Assembler) “Being an RV owner traveling to many campgrounds, it helps secure my happiness in the Freightliner brand to see the elevated awareness that they, as a manufacturer, have in protecting our environment.” Debbie & Ed Drabic, FCCC RV Owner, Maryland