WIRE JOURNAL DECEMBER 2019
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INTERNATIONAL www.wirenet.org
Corporate Social Responsibility Part 2
Plus: Wire and Cable Verona Wrapup
O F F I C I A L P U B L I C AT I O N O F T H E W I R E A S S O C I AT I O N I N T E R N AT I O N A L
FEATURE
Part 2: Corporate Social Responsibility In Part 1 in October, WJI presented corporate social responsibility (CSR) initiatives by some of the world’s largest wire & cable manufacturers. In Part 2, the focus is on steps by three smaller companies (ISO-focused environmental efforts; use of alternative energy; and fostering an exceptionally close bond with employees). Also, observations from a supply chain expert and further thoughts from EcoVadis. Finally, see p. 24 for an extreme story that ties into the theme.
Champlain Cable: a long-ago taken ISO journey has led to multiple returns Based in Vermont, it’s probably not surprising that Champlain Cable Corporation (Champlain) would have a strong interest in the environment. Below, Company President William Reichert, a graduate of the University of Vermont, discusses the importance and links between ISO quality management systems and CSR.
WJI: Why has ISO been important to Champlain? Reichert: In 1993, Champlain became the first U.S. wire and cable manufacturer to become ISO 9001 certified. That focus has long had a big impact on our operations. We have our own ideas of what to do, but if you use ISO’s quality management systems right, they serve as a guide that can help you become a better company.
that it was a good challenge for our folks to tackle, and they did an exemplary job. We were surprised at how a fresh look at standard procedures could lead to discovering improvements. We found ways to reduce machine set-up time, which also led to scrap reduction; we researched and found advanced products that improved our lighting and climate control; and we figured out how the water we used for cooling could be reclaimed and reused by a closedloop system. None of these projects were budget-busters. I know that some companies might fear what a program might “cost,” but we found that it actually lowered our overall costs. If you look close enough, you likely can find such savings in just about any plant.
WJI: How does ISO fit in with CSR? Reichert: With our ISO 9001 background, the natural next-step of our commitment to our quality systems and continuous improvement was to adopt ISO 14001, the environmental management system (EMS) that was introduced in 1996. ISO 14001, which was updated in 2015, meshes with our corporate value of sustainability. We’ve been certified to it since 2003, and we find it extremely helpful in achieving our goal of being good citizens With program officials, Champlain Cable President William for our community, our Reichert, center, accepts the Deane C. Smith Business Hall employees and our shareof Fame award. To his left is CFO Tim Lizotte and at right is holders. It’s part of who we Vice-President Business Development Richard Antic. are. WJI: How has it helped, and how challenging was it? Reichert: We adopted an EMS certified to ISO 14001:2015 that targets ways of reducing waste and generating cost savings. It improves critical environmental impacts created by the development, manufacture and transport of our products. We started doing this in earnest in 2001. Gauging difficulty so long ago is hard to quantify, but suffice it to say 42 | WIRE JOURNAL INTERNATIONAL
WJI: Where did you make changes that paid off? Reichert: Champlain views its processes as an entire system, so we consider the impacts of raw materials, manufacture, transportation and end of life. Every department asks themselves, “How can we reduce our environmental impact?” We start with an impact analysis of each product line and process, using this we determine the effects on the environment then identify discrete objectives. Below are some specific gains we achieved. Electricity use. By analyzing such things as machine operations, production waste streams, lighting, and interior climate control, Champlain has reduced electricity usage by 9.4% over the past three years through targeted projects and employee incentives. In cooperation with efficiency
NAM MANUFACTURERS’ SUSTAINABILITY SURVEY
Manufacturers in America are producing products that make modern life possible while simultaneously establishing a strong record in environmental protection. As the foundation of communities, manufacturers make substantial investments over time to minimize their environmental footprint by increasing energy Mega-large companies lead in CSR, but smaller ones may be better than you expect efficiency, saving and recycling water and implementing initiatives to reduce pollution and waste. Recently, the NAM surveyed member companiesofto better understand manufacturers are doing to 5000), become A recent survey by the its National Association doingwhat so. For large companies (500 to 78% either more sustainable. The supplemented in this manufacturers’ compelling stories Manufacturers (NAM) of itssurvey 14,000results small,are medium and had report a plan with or one in development. largeabout companies in industrial found that roughlystewardship The same results for small and medium-sized companies their own efforts tosectors advance environmental through sustainable practices. Taken together, 80% the either hadand or were developing a corporate responsibilless, but possibly more than one might expect: 68% of data illustrative examples show how manufacturersisare leaders in sustainability.
ity or sustainability policy, program and/or goals. medium-sized companies (100 to 500) either had a plan survey results demonstrate that sustainable is of prime importance to NAM As The might be expected, the largest companies (5,000 manufacturing or were developing one, the same ratemember was 50% of small employees and up) were the leaders, with more than 96% companies. Those numbers are expected to of improve companies. According to the data from the NAM’s sustainability survey, approximately 80.2 percent NAM as the having such a policy, and the remainder in the process of returns of such efforts are seen. member companies are either developing or have a corporate responsibility or sustainability policy, program and/or goals (71.9 percent current, 8.3 percent developing) (Figure 1).
YES
NO
Overall
Small
Medium
4.3%
14.3%
11.8%
11.1%
8.3%
0.0%
21.4%
31.3%
17.7%
50.0%
64.3%
56.3%
38.9%
71.9%
95.7%
Figure 1: Does Your Company Have a Corporate Responsibility or Sustainability Policy, Program and/or Goals?
UNDER DEVELOPMENT
Large
Very Large
For manufacturers, implementing sustainable practices is integral to their business model and operations. The survey yielded varied results by firm size with a key difference when comparing very large and large DECEMBER 2019 | 43 companies to medium and small companies.1 Very large companies (95.7 percent) that have more than 5,000 employees and large companies (64.3 percent) that have 501 to 5,000 employees are significantly
FEATURE
est customer. This involved a thorough review of our EMS programs, Champlain’s efforts have contributed to a very program, an on-site audit by the customer, and a comparisignificant reduction in tons of CO2 emissions. son with other suppliers to determine the best supplier. Water reduction. Water is used in many operations for Also, in 2015, Champlain received the Deane C. Davis cooling. In the past, water entered our facility, was used Outstanding Vermont Business of the Year Award, which for the cooling function, and then exited. Now, we have recognizes state companies that achieved the highest stana closed-loop system where the water is reused over and dards of excellence over the past year. One scoring factor over, filtered as needed, and supplemented occasionally was that a company must have demonstrated continued with fresh water to maintain proper quantities. We annually growth, creation of a positive work environment and a save hundreds of thousands of gallons of water. commitment of their resources to improving their commuRaw material recycling. The vast majority of the raw nities. That award led to Champlain’s induction into the materials we use is copper and wire insulation. Any Deane C. Smith Business Hall of Fame in 2019. process inherently will result in some raw material scrap, but by analyzing our operations and training operators on WJI: Do you have other efforts going on? scrap reclamation and recycling procedures, we now recyReichert: As an ISO 9001, ISO 14001 and IATF 16949 cle 100% of our scrap copper and more than 98% of scrap company, we are continually assessing our processes and insulation compound. practices for improvements. We are targeting more effiSolid waste. Champlain implemented its first recycling ciencies in electricity usage (via refrigeration, ovens, air program over 25 years ago. At that time, it was mostly compression, climate control and other production equipcardboard, paper, plastic and aluminum. Today, we have a ment), reductions in paper usage and further reductions much more comprehensive solid waste reduction initiain our waste-to-landfill. We feel good about things we’ve tive. Every facility department was reviewed to identify done to help the environment and the company, but if you opportunities to improve recycling and reduce waste. That keep looking, you’ll find that there’s always more that can includes working with waste hauling contractors to ensure SUPPLEMENTAL REPORT ON MANUFACTURERS’ GOALS, be done. Again, this journey is not necessarily easy and it the lowest waste to landfill rates. certainly isn’t quick, but it is one that can be taken, and it ACHIEVEMENTS AND INVESTMENTS IN SUSTAINABLE PRACTICES can be done without spending a fortune or intefering with WJI: How successful have your efforts been? schedules. The key is to enter this with the mindset that this Reichert: In 2018, Champlain won a Supplier of the Year is part of what you do as a company. award for Environmental Health and Safety from our larg-