Supplier s Partnership for the Environment Meeting December 4, 2012

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Supplier s Partnership for the Environment Meeting December 4, 2012 Mark Proulx, Environmental Specialist Johnson Controls Automotive Experience Ontario Facilities

Our Businesses

Johnson Controls is a globally diversified company in the building and automotive industries Automotive Experience A global leader in automotive seating, overhead systems, door and instrument panels, and interior electronics. Power Solutions The global leader in lead-acid starter batteries, advanced lead-acid batteries for Start- Stop vehicles and Lithium-ion batteries for hybrid and electric vehicles. Building Efficiency A leading provider of equipment, controls and services for heating, ventilating, air-conditioning, refrigeration, and security systems for buildings. 3 Johnson Controls

Our Environmental Leadership

Johnson Controls Automotive Ontario 2000 Automotive facilities in Ontario and the United States began the first steps in putting together environmental management systems under ISO 14001 2003 All automotive facilities in Ontario and the United States became certified under ISO 14001 2011 Building Efficiency divisions began the ISO 14001 certification process and are currently in the implementation stages Each facility receives a 3 rd party audit every year. One year the focus is on the environmental systems and the next year, the focus is on regulatory compliance Ontario Facilities: Tillsonburg Polyurethane Foam Manufacturing, Milton Automotive Seat Assembly, Whitby Doors Plastic Injection Moulding, Mississauga Plastic Injection Moulding, Whitby Seats Automotive Seat Assembly, St Mary s (JV) Plastic Injection Moulding Ajax Building HVAC and Cooling Systems Manufacturing 5 Johnson Controls

Johnson Controls Automotive Ontario Sustainability Projects Energy Efficiency: Plants lighting retrofit T8 and T12 fluorescent bulbs switched to T5 s (300,000 to 1,000,000 kwh reduction annually) Compressed Air Leaks new projects being started (projected $10-20,000 annual savings for 2 facilities) Peak Electrical Demand large energy using equipment shut down for 4 hours during peak energy demand times (hot summer days), large manufacturing equipment, A/C reduced, lighting reduced Project in collaboration with OPA Only 2 facilities able to handle production juggle at this point (one facility on line, the other is implementing) ($30,000 + annual rebate) 6 Johnson Controls

Johnson Controls Automotive Ontario Sustainability Projects Energy Efficiency: - Solar Panels roof top installation on some facilities (being considered) - Energy Hunts conducted on an annual basis Chemical Materials Usage - Electrostatic gun trials underway for Naptha mould release (reduction in overspray) - Pollution Prevention Plan developed to reduce isocyanate pollution - Substitution of oil based polymer with non-oil polymer in foam cushions/pads Waste Water Reduction - High pressure equipment systems (foam injection machine) introduced to reduce waste water from a low pressure machine (144,000 L annual reduction) 7 Johnson Controls

Johnson Controls Automotive Ontario Sustainability Projects Chemical Safety: - Railcar safety changes introduced to minimize the chance of a railcar derail accident on site Air Emissions: - Considerable investment in reducing foam manufacturing air emissions through stack modifications and dust collectors (Ontario Air Regulation 419) and the installation of sound enclosures to mitigate a roof top noise issue Waste Materials - PVC / ABS (3 part material) trimming recycling avenue discovered (400,000 lbs recycled). - Automotive foam cushion/pad scrap processed for recycling using a community based program that benefits the mentally and physically challenged. 8 Johnson Controls

Johnson Controls Automotive Sustainable Packaging & Products Packaging Efficiency: Returnable package used extensively in our plants Recycled packaging pick ups reduced to greatest extent possible For long hauls (trim covers from Mexico ) and foam, we have developed packaging methods that eliminate a return transportation leg saving emissions and reducing cost Product: Seats are the heaviest component in the interior. Lighter weight seat frames help our customers improve fuel economy

What we re teaching our suppliers

Sustainability Rating Supplier Portal

FY2011 Sustainability Rating Supplier Portal http://www.johnsoncontrols.com/publish/us/en/suppliers/automotive_experience.html

FY2011 Sustainability Rating Supplier Portal Supplier Survey Questions: Detailed questions regarding the following: Does the supplier have an Ethics Policy? Does the supplier have an Environmental Management System under ISO 14001? Does the supplier have an Energy Reduction Program? Does the supplier have a Health and Safety Program? Does the supplier have Employee Care Programs? All suppliers are expected to complete the survey. Suppliers with favourable responses may have an advantage if all things are even in terms of cost, quality etc with other suppliers during a bidding process