Introduction Climate Change Resources Smarter Chemistry Engagement and Advocacy Appendix 2023 Environmental Progress Report 64 Innovation We’re continually developing our Innovating the designs and program, we look at the conditions in which a material is approaches, including using cascade and counterflow Creating new, safer chemistries knowledge of material properties processes used to make used so that we can make recommendations that reflect rinsing processes, which helped retain 75 to 85 percent to move the industry forward to improve the chemical safety, our products the existing controls around a substance. And we work of the water used during metal finishing. This process proactively with our suppliers so that their employees are improvement has the potential to save millions of gallons Our strict requirements that govern potentially harmful performance, and environmental By focusing on materials early in product development, protected through proper storage, handling, and material of freshwater annually when applied at scale. substances in our products and processes encourage the impact of materials. These three we create opportunities to innovate improvements application controls. suppliers we work with to also prioritize safer materials, factors drive our assessments of throughout the process of creating a product. We assess In addition, we advanced our ability to recover acids helping create a market for better alternatives. We’re substances and help us pursue materials for performance, safety, and environmental Our work considers the impact of materials when used in chemical polishing and anodizing. These acids lending our expertise on safer chemistries to help our impact. These represent our holistic approach to smarter our products reach their end of life. We take steps to are typically discarded after one use, but we were able suppliers meet the growing demand for safer materials. innovations that align with our values. chemistry, allowing us to design for our customers’ needs prevent potential releases into the environment during to purify and recycle them back into the manufacturing Prioritizing these materials also means phasing out while creating products that exceed expectations and are the recycling process and to protect those involved process, reducing consumption by more than 90 percent . chemistries that don’t meet our specifications. We’ve The foundation of these innovations is our work in safer for use, reuse, and recycling. in recycling our products. This involves monitoring This approach has enabled us to reduce the largest approached this across our company and products while mapping, assessing, and managing the chemicals used in chemistries that may be harmless in small quantities source of solid waste from the anodizing process, and at investing in safer alternatives to drive change across our our products and supply chain. We also look at how these To achieve these goals, we focus on the process of but become more concentrated through recycling scale could potentially eliminate 4000 tons of waste. industry. The use of safer cleaners today supports the materials are used in a product life cycle, from design material selection. This involves choosing the substances processes. And it also entails assessing how potentially circular supply chains of the future. and manufacturing to end of life. With this knowledge, incorporated into our product designs and those that harmful substances impact the recyclability of a material The material and process innovations that we develop we can seek out and support the development of safer our suppliers use to manufacture our products. Our to avoid downcycling — use of the material in lower- result from all these efforts. Our work to share information chemistries that have an impact, and we can contribute comprehensive chemical profiles of each material quality applications — or substances that could make the across our supply chain, perform detailed process and to continually improving the overall safety of our products provide the basis for each decision. The FMD program material unsafe for any use. chemical assessments, and partner with suppliers and processes. documents material information — like composition — on chemical management lays the foundation for for review by our experts so that a substance’s suitability We also pursue innovation projects that lead to better improvements. We’re able to better protect those who meets our standards before it enters our supply chain. products. In 2019, we launched a pilot program at a make and use our products and enable the reuse of key This includes toxicological assessments of each manufacturing location in China as part of our anodizing materials. And by keeping harmful chemicals out of our chemical within a material, focusing on those that come improvement program with the aim of reducing, and supply chain at the outset, we make it possible for us into prolonged contact with skin. Each design choice eventually eliminating, potentially hazardous discharge, and others to recover materials for the next generation determines the materials included in our product and as well as reducing water and chemical use. As part of products. the chemicals required to make them. Through the CSD of the pilot, we employed several water efficiency