AIS & CarbonNeutral ®

AIS’ Environmental Journey… Lean manufacturer, reducing waste from every aspect of our manufacturing stream. –Shingo Prize –Top 25 plants in North America by Industry Week Magazine Utilizes recycled and environmentally preferred materials –Low VOC –Low Formaldehyde/Formaldehyde Free Complies to Indoor Air Quality Standards –GREENGUARD –BIFMA Achieving Net Zero carbon footprint for the manufacturing of its systems furniture.

AIS & CarbonNeutral® AIS took its lean initiatives one step further and invest in carbon offsets The company reduced its carbon footprint with internal reductions, but wanted to offset the unavoidable greenhouse gasses used in the manufacture of its systems. Together with the CarbonNeutral® company AIS has measured its Carbon footprint and invested in projects throughout the world to offset negative impacts, becoming a CarbonNeutral® company.

What is Carbon Dioxide ( CO 2 )? To really understand what all of this is about, you first need to understand what Carbon Dioxide is and what it does: –CO 2 is a long-lived greenhouse gas (GHG) produced when fossil fuels are burned (oil, coal) –The build up of CO 2 in the atmosphere can cause an increase in the Earth’s surface temperature, also called Global Warming. –The increase in temperature is believed to cause severe changes in weather that are catastrophic. –Scientific opinion is that global GHG reductions of 80% are necessary by 2050 to avoid the worst effects of climate change.

What is a Carbon Offset? A Carbon Offset represents the reduction of one metric ton (2,205 lbs) of carbon dioxide emissions. Although complex in practice – carbon offsets are simple in theory: –If a project is developed to reduce carbon emissions, every ton of emissions reduced results in the creation of one carbon offset. –Project developers then sell these offsets to finance the cost of their projects. –For example: a wind farm generates clean energy, which reduces carbon emissions from coal burning power plants. To finance the operations, a wind farm can sell these reductions in the form of offsets.

What is a Carbon Footprint? A carbon footprint is a measure of the impact that our activities have on the environment, and in particular climate change. It relates to the amount of greenhouse gases produced in our day-to-day lives through the burning of fossil fuels for electricity, heating, manufacturing, transportation, and more.

What is AIS’ Carbon Footprint? AIS has measured the following emissions in our Hudson, MA facilities: –Natural gas consumption –Electricity consumption –Waste disposed –Gasoline used in company vehicles –Miles traveled by rental car –Hotel night stays –Commuting type and distance –Refrigerant gas loss –Movement of company owned goods The total carbon footprint for AIS is 3,500 metric tonnes of CO 2 e.

Why did AIS make this commitment? A part of our lean manufacturing philosophy AIS was able to reduce it’s carbon footprint with internal reductions – however the company felt it wasn’t enough. AIS wanted to investigate other ways and invest in alternative energy solutions and emerging green technologies. AIS wanted to make a bold commitment in hopes that others in the industry would follow. We hope to educate and teach others – this is our responsibility.

What does being CarbonNeutral ® mean? CarbonNeutral ® is a brand mark. –It is awarded when CO 2 emissions are measured and reduced to net zero in accordance with a standard called the CarbonNeutral protocol.

How did AIS achieve CarbonNeutral ® certification? To achieve the CarbonNeutral ® brand mark, AIS went through a process that involved: –Measuring CO 2 emissions from travel, waste, energy, etc. –Setting a net zero CO 2 target, and planning for how and from where to make reductions –Executing a program of external and internal CO 2 reductions –Being awarded the CarbonNeutral ® brand and using it to inspire others to follow suit

What projects is AIS offsetting its carbon emissions with? AIS has selected 3 offsetting projects: –The first being a forestry project in Mendocino County, California called the Big River/Salmon Creek Forests ProjectBig River/Salmon Creek Forests Project –The second is a methane capture project in Tieling, China that captures methane gas released in the coal mining processmethane capture project –The third, a renewable energy project, generates clean energy from 40 wind turbines in Mongolia, Chinarenewable energy project

So what does this all mean? AIS is the first systems manufacturer to achieve CarbonNeutral® certification It shows AIS has made a bold environmental and social responsibility commitment. We’re taking our commitment to lean manufacturing to another level. We hope to educate the industry and see some forward progression.