Professional Documents
Culture Documents
Going forward, every Lucent employee needs to remain dedicated to demonstrating that sustainability is both an attitude and a way of life. This approach will help ensure a healthy and safe environment for future generations. And by combining a focus on business excellence with heightened environmental and safety awareness, we will better position ourselves for success in the global marketplace. This 2004 EH&S Annual Report summarizes some of the recent progress Lucent has made with regard to our environmental practices. Upon reading it, I am confident you will find that we continue to take this commitment seriously. The reason we take it so seriously is simple: It is the right thing to do.
Letter from Roy Femenella Lucent Environment, Health & Safety Vice President
Over the years, we have strived to integrate environment, health and safety (EH&S) aspects into our fundamental business processes. To that end, I'm pleased to report that Lucent is currently implementing a global management system that will be ISO 9001, TL9000 and ISO 14001 compliant. As a result of this approach, decisions regarding product and operational matters jointly consider EH&S implications and opportunities, with a "line of sight" to our board of directors.
As we have increasingly employed strategic business partners in support of Lucent Technologies' vision and mission, there is also an increased recognition that being a socially responsible company extends to our suppliers. As you review this annual report, you will see examples of how we have continued to drive EH&S awareness through our supply chain. Our EH&S expectations are now fully integrated into the Lucent Supplier Capability Assessment tool that Lucent uses to assess a supplier's capability to systematically meet our needs and expectations. The assessment is used to determine if Lucent should use, or continue to use, a supplier. Lastly, we have attempted to structure our annual report with consideration given to the Global Reporting Initiative Sustainability Reporting Guidelines. It is in this spirit that we have included EH&S information, which we believe is most relevant to Lucent's business model and our stakeholders. We welcome feedback from our stakeholders and will seek opportunities to proactively engage them and solicit their input going forward.
Introduction
One of Lucent's core values, "a strong sense of social responsibility," sets the foundation for the kind of company that we aspire to be and guides our actions as we go forward to create our future one where we serve and enhance the communities and the society on which we depend. More and more, our stewardship in those areas is built on the concept of sustainability. This remains a driving force for Lucent's environment, health and safety (EH&S) programs and our belief that corporate investment in EH&S is both socially responsible and business critical. It is an investment in our ability to meet customer needs, address environmental considerations, support our operations and create sustainable competitive advantage. Building on our legacy of EH&S reporting, we are taking steps, commencing with this annual report, to incorporate elements of the Global Reporting Initiative (GRI) 2002 Sustainability Reporting Guidelines (Guidelines) and establish a baseline for future reports. We have used the Guidelines to help decide the content that we believe is most appropriate for Lucent and its stakeholders, given our evolution from a vertically integrated manufacturing company to a business model that relies on strategic supply chain partners. Our intention is to provide stakeholders with significant insight into Lucent's commitment and support of sustainable development, a key aspect of social responsibility.
Lucent has design control. Incorporate X-free requirements in product specifications. Identify and evaluate alternative (X-free) parts in the active component portfolio. For results, click here. By January 2006, we will develop and implement methodologies, in support of market requirements, to achieve a 75 percent level of recovery and a 65 percent level of recycling for Lucent products. In 2004, we will: Baseline the current levels of recycling and recovery. Establish processes and metrics to calculate compliance and meet reporting requirements. Incorporate critical Design For Environment aspects into design and supply chain processes. For results, click here.
on a variety of diseases and conditions, as well as programs to help them improve their health. Lucent Health Services also grants medical support to Lucent employees who go on temporary assignments in other countries by providing advice and guidance, including maintaining and making available a global listing of available certified physicians.
Incidents
Lucent was not involved in any incidents such as spills or regulatory noncompliances during 2004.
Environmental Impact
Lucent systematically identifies the environmental aspects of its products and associated activities. The aspect evaluation process is based on a proactive multi-criteria product life cycle approach. It is used to identify environmental aspects associated with hardware products in accordance with environmental management system procedures using methodology consistent with draft standard ISO 14062, Integration of Product Aspects into Product Design. Integrating environmental aspects into product design and development involves consideration of a range of potential impacts helping to ensure that reduction of one impact does not result in an increase in another impact. When using a multi-criteria life cycle approach in designing and developing a product, different criteria may be applied while maintaining the product's function. The aspect evaluation process is to establish an eco- environmental baseline for current products and gather the data necessary to influence future product designs. Environmental Aspects are considered across the entire life cycle of our products and include: banned and restricted substances (material content), energy efficiency, end-of-service-life take-back, ability to be recycled and reusability. Minimization of the amount of material used is a design objective. Additionally, efforts to extend the life of a product take into consideration design for maintenance, repair, refurbishment and reuse. Similarly, the variety of materials used is minimized to promote ease of separation and ability to be recycled, particularly for plastic parts. Based on our analyses to date, for our products, the life cycle stage with the greatest environmental impacts is the product's use stage (typically 15 to 20 years). This is a function of the amount of energy consumed over the life of our products. Consequently, improved energy efficiency of our products results in a significant decrease in greenhouse gas emissions over their life cycles. Our customers are concerned about the use of energy, and the associated resulting impacts (global warming from electric utility greenhouse gas emissions) from the operation of their telecommunications networks. European bodies, such as the EU's Joint Research Centre, have begun studies on ways to legislate energy-saving features and efficiency targets for broadband equipment.
Additionally, the environmental performance of a base station can be evaluated from a product functionality and energy use perspective using an eco-performance metric. In the example below, the Compact 4.0 V2 base station was more energy efficient than the Modcell 4.0 unit, when considering the electrical usage for a unit of product functionality, which in this instance is bandwidth. The results are summarized in the table below. Year Product Energy Efficiency
% Improvement over previous
2002
2003
(4 sectors / 3 carriers)
Baseline
34%
25%
product
The use of an eco-performance metric provides the ability to demonstrate continual improvement of a product family. Hardware improvements such as the use of passive cooling, which eliminates the need for fans, and the use of newly available energy efficient amplifiers, contribute to the energy reductions for the product. Overall product eco-performance also typically increases as new types of technologies provide greater product functionality, for example, more bandwidth. The results for an outdoor mobile base station are summarized in the table below: Year Product Functional Energy Efficiency
Watts / bandwidth capacity (mega bits/sec)
(3 sectors / 4 carriers)
32 Baseline
19 41%
5 74%
% Improvement
Product Take-Back
Teams from across the business have been focusing on the EU Directive addressing Waste from Electrical and Electronic Equipment (WEEE). It requires producers to take back equipment at the end of their useful life and sets targets for recycling and recovery, beginning with products placed into the EU market in August 2005. Lucent has established a take-back program in accordance with WEEE. The capability to take
back products is fully implemented for all products and customers globally. In 2004, Lucent informed European customers about the terms and conditions under which take-back obligations will be executed. We have recycling programs for our products throughout the world that are capable of meeting WEEE requirements now. We continue to assess and analyze our product designs and recycling programs to achieve higher efficiencies. For example, Lucent has determined from its existing key contractors the current levels or baseline of recycling, and has established processes and metrics to calculate compliance and meet reporting requirements that take effect starting in 2006. In compliance with the WEEE Directive, Lucent is cooperating with its approved recyclers in an ongoing effort to understand their requirements for improving the recycling efficiency of our products. We also have completed life cycle assessments of some of our products to define key design-for- environment features that were then incorporated into tools, which support design and supply chain processes. Handling Take-back Requests Lucent's Global Reverse Supply Chain Organization (GRSC) has put in place the necessary processes to deal with any request for take-back and will coordinate such requests within Lucent. This support function will not only deal with take-back legal requirements but also will support swap-outs or other business opportunities in the "services" business segment where Lucent would manage the displacement of obsolete equipment for the customer. A take-back help desk is the one stop for any take-back requests. The first step in the process is a review of the product to see if there is an opportunity to resell valuable used equipment through the Special Customer Operations (SCO) organization. Lucent's second option is to take the equipment to approved contractors to be recycled, using the most efficient methods for "environmentally responsible" recovery. We audit each recycler we work with to ensure that they follow accepted practices. Lucent receives reports as to the quantity and type of materials recovered, and we make sure that the materials are directed to the appropriate destination for reuse or disposal. While our capability to take back equipment was previously put in place, our main focus in 2004 was to assess various options to arrange for taking back equipment, and shipping it to appropriate recyclers. Our target is to identify the most efficient set-up, while assuring appropriate waste handling, recycling and reporting according to the various requirements of individual EU member states. As we look ahead, it is expected that other countries around the world will adopt legislation similar to the EU directives during the next few years. The work being done now to comply with the EU mandates will prepare Lucent for future customer and legal requirements around the globe.
Lucent has developed a practical method to demonstrate compliance with regulatory recycling targets. An eco-metric tracking tool is used to capture recycling data and demonstrate compliance with EU regulatory recycling targets. However, Lucent chooses not to stop there, as we continue to identify areas where future recycling improvements should be focused. For example, we are working with our preferred global recyclers to identify materials that they need to separate for further treatment and recycling efforts. We are also working with our suppliers to determine the presence and use of these materials in our supply chain, and to evaluate better life cycle alternatives.
Air Contaminant
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working environment for Lucent's staff, its customers and contractors. Lucent's EH&S professionals in Baghdad apply the methodologies of the LWS EH&S management system to identify risk, implement risk management programs and establish goals for minimizing work-related accidents. In support of the Baghdad based professionals, Lucent has leveraged the skills of its network of EH&S professionals in the Middle East and Europe to give support by delivering specialist training and technical direction and advice when needed. EH&S awareness training is delivered so that individuals are aware of risk and understand how to avoid work-related hazards. EH&S requirements have been integrated into the contracts of the subcontractors involved. Lucent monitors the EH&S performance of subcontractors to ensure that safe work practices are followed.
Remediation
The Remediation Group within Lucent oversees the investigation, design, construction and operation of environmental remediation and restoration projects. In taking its legacy environmental responsibilities seriously, Lucent makes every effort to achieve a cleanup standard that addresses human health and the environment and does so in a financially responsible manner. Our remediation activities fall into two broad categories associated with Lucent owned (or formerly owned) facilities and third-party waste disposal and reclamation facilities. In certain cases, the liability may be related to a business or property acquisition. Projects may be regulated under one or more local, state or federal programs such as CERCLA (Superfund), RCRA (Hazardous Waste), state cleanup programs in the United States, as well as the international or country-specific regulations. When Lucent sold its manufacturing operations to contract manufacturing service providers or property developers, wherever possible, we sought to identify prospective purchasers that would reuse or redevelop the properties in a manner that is beneficial to the community and the environment. In most instances, Lucent has retained responsibility for managing any presale environmental issues. Lucent works closely with the buyer(s) and regulatory agencies to ensure a smooth ownership transition and to facilitate redevelopment. This includes innovative contracting relationships with our environmental consultants and remediation contractors to complete site cleanup and closure on an expedited schedule. This approach provides benefits to the buyer, the community and Lucent. For waste disposal and reclamation facilities, these Superfund sites are usually shared liability sites with multiple parties participating in the management, operations and funding. Funding is typically based on the respective party's share of the total volume of waste that went into the site. At a few sites, Lucent has the primary responsibility for operations and funding. Where there is a potential for disruption of wetlands, or impacts have already occurred, the remedial design is modified to ensure the wetlands area is protected, restored, or replaced with an equivalent wetlands resource. A recent example is the design and construction at the MW Manufacturing site in Pennsylvania. The design was modified to minimize impacts to existing wetlands and to provide additional wetland resources. The cover design was revised to protect or relocate the existing on-site wetlands and to create additional wetlands. Also, the groundwater extraction design was modified to minimize the potential disturbance of down-gradient wetlands. As a result of ongoing remediation operations and maintenance, Lucent restored more than 494 million gallons (1.87 billion liters) of groundwater to productive use in fiscal 2004. Groundwater remediation systems are closely monitored to ensure the effluent quality meets applicable standards, which, in many cases, are the drinking water standards. In addition to our efforts to remove contaminants from the environment, Lucent also participates in supplemental programs designed to assist the communities affected by the past operations. Recent examples include a program in East St. Louis, Ill., that provided health and safety training to citizens who were then employed on the remedial project. In 2004, Lucent, along with other parties, helped develop and fund a $2 million lead abatement program in Madison County, Ill. This program will identify and abate potential lead paint and lead pipe issues throughout the community. In 2004, Lucent completed the cleanup of the MW Driftwood site in Driftwood, Pa., under the Pennsylvania Act 2 Land Recycling Program. This cleanup facilitated acceptance of the site into the Brownfield Action Team Program, which will assist in creation of new business and as many as 40 jobs over the next three years. Driftwood is located in a rural, economically disadvantaged part of Pennsylvania. Total remediation expenditures for FY2004 were $19.5 million (this includes offsets for cost recoveries and credits from other parties).
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Defensive Driving Program - In 2001, a Lucent Worldwide Services (LWS) team in San Pedro de los Pinos, Mexico, established the Defensive Driving Program, which includes documented safety rules and controls for Lucent vehicles, drivers and their managers, as well as annual driver training. As a result, Lucent Mexico has had no injuries and an 83 percent reduction in the number of vehicle incidents/accidents in the past four years while maintaining a fleet of 116 vehicles used by 160 drivers. The program also has reduced insurance and maintenance costs in Mexico and has been replicated in other countries throughout the Caribbean/Latin America (CALA) region. Team Members: Luis Cantu, Silvia Crespo, Mario Cruz, Jorge De Leon, Samuel De Leon and Monica Segura. Vehicle Safety Management - A Global Sales team in Qingdao, China, joined by members of SCN, launched a new program for vehicle safety management, which includes monthly safety inspections for shuttle buses and company cars and provides monthly traffic safety training for all drivers. The program reduced the traffic accident rate to zero in 2004 and improved vehicle safety awareness among employees. Team members: Wang Chen, Wu Zhan Jun, Gary Tao Lin, Lv Xiao Peng, Qin Ping, Jiang Ruidong, Fu Guang Xu, Chi Yaoshi and Annie Andi Zhang. Remanufactured Circuit Packs - Members of Optical Networking in Holmdel, N.J., and SCN in North Andover, Mass., partnered with the Special Customer Operations group to develop $5 million in incremental revenues for 2004 by remanufacturing OLS1.6T (400G/800G) circuit packs from excess inventory, buy-backs and trade-ins, and reselling them to customers. Team members: Douglas Brochetti, Paul Deshaw, Jayne Hall, Lisa Lam, Robin Miller, Catherine Rose, Chris Stafford, Pilar Somohano, Blake Tucker and Sam Willoughby. Management Practices Projects in the Management Practices category, selected for achievements in developing effective environment, health and safety management programs within Lucent or in partnerships with strategic business partners, government agencies or outside organizations, are: Hazard Gas Risk Remediation Team - In New Jersey, members of Lucent EH&S (LEH&S), Bell Labs and Lucent Real Estate came together to ensure that all Lucent R&D facilities minimize the release of toxic chemicals into the environment. The team developed management practices that require Lucent laboratories to use state-of-the-art air pollution control equipment, continuous emission monitors and safety devices that result in automatic gas flow shutoff. The team also has been asked by the state of New Jersey Department of Environmental Protection to help design a regulatory policy to effectively control chemical emissions from research facilities within the state. Team Members: Jose Alvarez, Larry Bernson, Evans Chen, Don Church, Larry Federico, Steve Ferrante, Bill Hemp, Bob Keller, Richard Quick, Rose Kopf, Nick Sauer, Shaun Van Doren and Eric Wichman. APAC Supplier Performance Management - An LEH&S team in Shanghai, China, provides training to Lucent's Supplier Management team and Quality team on EH&S issues and encourages Lucent suppliers to meet EH&S legal requirements in developing their own EH&S management systems. This benefits their business and Lucent's. The team has created a comprehensive database containing information on the EH&S management status of more than 130 suppliers. Team members: Richard Ren, Wei San Wan, Colin Wang, Grace Xu and Hong Xu. Promoting EH&S in APAC - During the past seven years, LWS and LEH&S teams in Hong Kong and Singapore worked together to establish and implement EH&S management systems in all Lucent's Asia/Pacific (APAC) locations, resulting in increased employee awareness about EH&S issues and a safer working environment. Programs have been created to train managers and employees, measure and control waste disposal, minimize the use of electricity, paper and fossil fuels, and encourage recycling throughout the region. Also, during the past two years, the region has suffered no lost work time due to accidents or injuries. Team members: Asam Cho and Wee Liang Ong. Eco-Metrics Development Team - A cross-functional team from Swindon, England; Columbus, Ohio; Murray Hill and Whippany, N.J., developed a process to systematically manage product eco-environmental performance improvement data (Eco-Metrics). This facilitates the "green" evolution of products and compliance with regulatory requirements. Team members: Fred Blechinger, Kathy Donnelly, Sue Holman, Beth Kujan, Roger Olds and Gabriel Valdez Promoting EH&S in Australia/New Zealand - LWS, SCN, LRE and LEH&S team members in
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Australia and New Zealand successfully implemented a tracking system for incident/accident reporting and investigation, as well as programs for measuring and controlling the disposal of waste and use of electricity, paper and fossil fuels. Between 2002 and 2004, their efforts to minimize on-the-job accidents and illnesses resulted in a 90 percent reduction in insurance costs in both countries. Team members: Marcus Andreassen, Asam Cho, Sarah Corney, Steve Doherty, Louise Hammond, Mike Hyett, Dillip Kanji, Andrew Kingham, Matthew Lawrence, Lesia Masnyi, Jim McGregor, Lynette Messina, Ravenel Morgan, NicolleMuller, Wee Liang Ong, Angela Sammons, Neville Todd, Gabriel Wong and Melanie Young. Planning for the Future In the Planning for the Future category, the projects, chosen for innovation in environmentally sound design, technology or manufacturing methods and processes, or workplace design innovations that prevent job-related injury or illness, are: UCR 450 Cost Reduction Program - The UCR 450, a radio controller board for the CDMA Flexentr Modcell 4, was designed and developed by teams in Columbus, Ohio, and Nuremberg, Germany, in compliance with the European Union's Restrictions on Hazardous Substances (RoHS). By including new functionality, the team reduced waste products and power, leading to cost savings of more than $1 million. Team members: Peter Baehrle, Jim Batey, Jeffrey Blankenship, John Chismar, Kevin Daugherty, Dave Dempski, Wolfgang Eckl, Bernd Friedel, Mike Hayden, Jim Heom, Fred Hoefelmeyer, Gerhard Kaminski, Don Motley, Carl Olen, Paul Redder, Kai Schmitt, Shrijay Dalal, Gary McClung, Joseph Moussa, Adam Smith, Mike Vehonsky and Dave Walder. Energy Modeling Tool - A cross-organizational team in Whippany, N.J., created a statistical tool to provide accurate information on the energy consumed by Flexentr products. The tool is now used by product development teams, customer teams and external customers to evaluate the energy impact of wireless base station operations. Team members: Abe Assad, Beth Kujan, John Olivieri, Jitendra Patel and Michael Venezia. Modcell Solar Shields - A physical design team in Whippany, N.J., replaced the solar shields mounted on the Flexentr CDMA Modular Cell with polycarbonate solar shields, resulting in a 98 percent improvement in environmental performance and a reduction in cost for materials, shipping and installation time. Team members: Joe Borowiec, Alex DiNota, Jack Dispenza and Jerry Grandov. CDMA Baseband Radio Circuit Pack Development Team - Team members from SCN and Mobility Solutions in Columbus, Ohio, redesigned the CDMA Baseboard Radio (CBR) circuit pack so that its productivity is maintained but its energy consumption is reduced. The redesigned circuit pack consists of one circuit board instead of two, resulting in lower production and shipping costs because the pack is lighter and requires less material to build. Additionally, the impact on the environment includes a reduction in greenhouse gas emissions and solid waste generation. Team members: Jim Batey, Jeff Blankenship, John Chismar, Kevin Daugherty, Mike Hayden, Paul Redder, Larry Shepard, Adam Smith, Dave Walder and Terry Zylstra. Social Responsibility The project chosen for Social Responsibility, demonstrating outstanding individual or corporate citizenship, is: Operation Bob: Supporting Our Troops - LWS team members in Sunnyvale, Calif.; Holmdel, N.J.; Malvern, Pa.; and Columbus, Ohio, helped a colleague who was called to active duty in Kuwait in July 2004 and his Navy Reserve unit by collecting personal health care items and sending them overseas. The team's contribution positively influenced the health, well- being and morale of the unit and helped offset costs that the military families would incur for these items. Team members: Karin Donnelly, Chris Frantz, Lyn Green, Tom Jones and Suzanne Pearson.
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EN10 NOx, SOx, and other significant air emissions by type. Significant spills of chemicals, oils, and fuels in terms of total number EN13 and total volume. EN14 Significant environmental impacts of principal products and services Percentage of the weight of products sold that is reclaimable at the EN15 end of the products' useful life and percentage that is actually reclaimed EN16 Incidents of and fines for noncompliance with all applicable international declarations/conventions/treaties, and national, subnational, regional, and local regulations associated with environmental issues Objectives, programs, and targets for protecting and restoring native ecosystems and species in degraded areas.
Performance of suppliers relative to environmental components of EN33 programs and procedures described in response to Governance Structure and Management Systems section (Section 3.16). EN35 Total environmental expenditures by type. LA5
Work-related Practices on recording and notification of occupational accidents and diseases, and how they relate to the ILO Code of Practice on Recording injuries and and Notification of Occupational Accidents and Diseases. illnesses Description of formal joint health and safety committees comprising management and worker representatives and proportion of work force Safety at Lucent covered by any such committees. Standard injury, lost day, and absentee rates and number of work-related fatalities (including subcontracted workers). Work-related injuries and illnesses
LA6
Description of policies or programs (for the workplace and beyond) on Lucent Health HIV/AIDS. Services Description of policy for preserving customer health and safety during use of products and services Description of policy, procedures/management systems, and compliance mechanisms related to product information and labeling. Number and type of instances of non- compliance with regulations concerning customer health and safety, including the penalties and fines assessed for these breaches. Product Compliance Product Compliance Incidents
Number of complaints upheld by regulatory or similar official bodies to Incidents oversee or regulate the health and safety of products and services.
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PR6
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