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Nypro Sustainability
n y p r o 2 0 1 1 s u s t a i n a b i l i t y r e p o r t

world

Who is Nypro?
Nypro is a leading global, custom precision plastics products manufacturer. With $1.2 billion in sales in Fiscal 2011, we operate 41 locations in 14 countries employing more than 17,000 people. Nypros mission is To serve our customers with integrated, innovative and environmentally sound manufacturing solutions , built on Nypros global plastics leadership, creating value for our team members, communities and shareholders. Nypro is committed to the concept of shared value operating in a manner that builds our business and the society we serve. As a vertically integrated leader in plastics manufacturing, Nypro offers virtually all aspects of the plastics production processes required by the worlds leading companies, including product design and development, mold making and design, precision injection molding, advanced decoration, assembly, contract manufacturing for fully finished and shipped goods, supply chain management and diversity supply. Markets we serve are Healthcare, Consumer & Electronics and Packaging, along with additional markets through our strategic companies.

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Dear Reader:
the challenges facing manufacturing have never been greater than they are today. since nypro was founded in 1955, we have approached these challenges by adhering to strong principles that promote sustainability, responsibility and respect. our business has been growing steadily for 56 years, navigating through dramatic changes in the plastics space, numerous recessions and a constant migration of markets all over the world. in our chosen markets, we know that patients need better, less invasive healthcare devices that minimize time spent in a hospital setting. consumers need helpful products and packaging that combine complex modern
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promise

the nypro corporate mission makes our intentions clear to serve our customers with integrated, innovative and environmentally sound manufacturing solutions, built on nypros global plastics leadership, creating value for our team members, communities and shareholders. we have team members who are stockholders all over the world, and our communities are where our team members work and live, so this company really is all about our own people and how they serve our customers. you will see the term shared value many times in this report it means that we believe that our efforts should benefit our society at large as they benefit our business and our customers. we have grown through the years and continue to have excellent prospects because we recognize this unique connection and we demonstrate it to our customers and ourselves every day. please let us know if you have any questions about sustainability at nypro or if you have any suggestions about improvements that we could make in our sustainability activities. our livelihoods depend on it. thank you. ted lapres

technology with time-honored traditions of simplicity and frugality. and the world needs plastics companies that take to heart the need to reduce, reuse and repurpose. if nypro inc. had a middle name, it would be technology. we were the first plastics molder created specifically to mold engineered plastics. we have always taken pride in hiring and developing engineers who can partner our knowledge of plastics with the leading global companies in healthcare, packaging and consumer electronics. we are constantly developing our own ideas, and employing the good ideas of others, to satisfy our customers with improved products that delight their markets.

president and ceo nypro inc.

Nypro Values and Core Beliefs

nypros vision is to build a superb global organization that is sustainable, responsible and continually improving. we do this with total commitment to our customers and to their customers. our success is derived from a passion to serve, characterized by flexibility, adaptability, innovation, trust and transparency. our goal is to provide quality products and services that meet the needs of our customers. we believe in individual worth and integrity. all jobs within our organization have a real value. all team members deserve respect. we are committed to making a contribution to our communities, our customers, our team members, our society and our environment. nypro is focused on helping our customers and partners to succeed and in turn sharing our financial success with our team members. we believe in respect and civility. we behave toward each other in a positive, supportive and dignified manner. our systems and facilities are designed to provide a safe and positive working environment. we collaborate actively through common goals, objectives and solutions. we promote individual initiative and creativity. we believe in treating others as we would have them treat us. ethical behavior is at the root of all nypro decisions and actions. it is a basic value of nypro that all team members be viewed by others as highly ethical and thoughtful. nypro team members do what we say we will do. nypro team members actively consider the intended and unintended consequences of all activities carried out in the companys name and act accordingly. nypro believes in profitable performance. sustained growth and profitability are essential to our health and prosperity as a company. nypro uses its growing profitability to assure that it can efficiently serve its customers, build equity for its employees, create jobs, pay taxes and uphold our long tradition of service and success.
our mission

To serve our customers with integrated, innovative and environmentally sound manufacturing solutions, built on Nypros global plastics leadership, creating value for our team members, communities and shareholders.

nypro inc. environmental, HealtH and safety policy nypro is committed to being an industry leader in conducting our business responsibly to protect our employees, the public and the environment. our environmental, Health and safety (eHs) commitment is a core value and an integral part of our business activities. All Nypro employees and contractors are responsible for working to promote safe and healthy environments for our co-workers, contractors, visitors, customers and the communities in which we operate. it is our objective to meet or exceed all applicable eHs laws and regulations in our business activities. in addition, we will continually work to achieve the following eHs objectives:

Nypros Sustainability Priorities and Goals

our goal at nypro is simple and yet very challenging to be the worlds most respected plastics molding company in terms of sustainability. we intend to earn this status through strategically balancing business opportunities with social, economic and environmental responsibilities. we believe that performance must be measured in financial terms as well as by our service to our customers, our people, our communities and our planet. as a contract manufacturer wholly dependent upon ongoing service to customers, nypro employees at every level are aware that our success is intrinsically connected to the success of others. our sustainability program is an outgrowth of this belief. nypros four dimensions of sustainability are customers, people, communities and the world. sustainability is an evolving process, and as we at nypro set forth toward that end, we have committed ourselves to measuring and reporting our progress in order to mark our accomplishments, learn from our setbacks and weaknesses, and drive us toward our sustainability goals. one ambitious yet attainable goal that we have set for this decade is to slow the growth of our water, energy and carbon footprint to a rate that is less than 50% of our revenue growth.

design and operate nypro facilities and equipment so as to prevent events that could have an adverse impact on peoples health and safety and the environment, cause significant property loss, or result in business interruption.

provide each employee with appropriate training necessary to acquire the skills and techniques needed for the safe and healthy performance of his or her work.

encourage and expect our employees to participate in the development and implementation of eHs programs and activities. drive environmentally sound and suitable manufacturing methods and techniques throughout the organization. make behavior consistent with this policy a condition of employment for our employees and contractors, as well as a measure of their success with nypro.

improve our eHs programs and performance through periodic evaluation, review, and implementation of appropriate corrective and preventive actions, and by focusing on behavior safety.

we will not consider nypro to be a successful company, regardless of how well we do in production, sales or profits, unless the principles of this policy are followed to the best of our ability.

ted lapres chief executive officer nypro inc.

Our Managements Commitment to Sustainability

to assure that nypro operations and people everywhere have a clear understanding of their obligations under the company commitment to sustainability for customers, people, communities and the world, nypro has established three top level boards an environmental, Health and safety & sustainability (eHs&s) council, an environmental, Health and safety (eHs) board of directors and a sustainability council. the eHs&s executive council is chaired by nypro president and ceo, ted lapres. the members of the council include the entire top management team Jim buonomo, cfo & chief strategy officer; Jim peck, corporate vp & General counsel; Greg adams, chief technology and information officer; paul Kayser, Group president for packaging; boris levin, Group president for Healthcare and nelson ngai, Group president for consumer & electronics. Kristine lesso, senior director, eHs&s and stacey lucas, a partner with the advisory firm environmental resource management also are on the council. the council defines the eHs&s strategy for the company and sets the overall direction for all eHs&s activities. this board meets quarterly and assures that eHs&s issues are deliberated and demonstrated from the top down throughout the company. the eHs board of directors assists in assuring that issues of interest to the company also are addressed from the bottom up, at all levels throughout the global structure of nypro. this board is chaired by Jim buonomo, cfo & chief strategy officer and a member of the collectively, these nypro executives and specialists have taken responsibility to implement and report regularly to the nypro inc. corporate board of directors on the issues of environment, health, safety and sustainability. they work at all levels through nypros global organization to continue the rich traditions of caring and commitment that have signified nypro and its people since the company was founded 56 years ago. the sustainability council is chaired by Kristine lesso, senior director eHs&s. this council is comprised of key stakeholders from the value chain and is responsible for operationalizing the sustainability vision set forth by the eHs&s executive council in addition to measuring, monitoring and reporting sustainability results throughout the organization.
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eH&s executive council. board members are Kristine lesso, senior director eHs&s; maria fung, senior director, Human resources, consumer & electronics; Kent yiu, vp, operations, consumer & electronics; James oGorman, vp, operations, europe, Healthcare; steve Holland, vp, operations, americas, Healthcare; tom frost, Global eHs manager, Healthcare; chuck porch, Global director, eHs, packaging; Kris nielsen, vp operations, packaging; Julio oropeza, managing director, nypro Knaak; John casali, nypromold and John taupier, np medical. this board ensures that all nypro operations throughout the nypro world are in alignment with corporate eHs&s objectives.

our customers
Developing sustainable, functional technologies that lessen the environmental impact of our customers products is a primary focus.

The greening of our performance is the greening of our customers performance. in the new market reality,
sustainability is essential to any product offering and contract manufacturing service. as part of our mission to offer an integrated insight to manufacturing model, radius product development, a nypro company, strives to create product innovation and development solutions that are manufactured using less material, need less energy to transport and meet or exceed green supply chain criteria. this model enables the passing on of shared value for the company and its society from our operations to our customers and concurrently to their customers.
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su s ta i n a b l e t e cH n o l oG y a n d i nnovation at nypro, responsibility to our customers, our people, our communities and our planet matters. developing sustainable, functional technologies that lessen the environmental impact of our operations and our customers products is a primary focus. for 56 years, nypro has been an innovation leader in material science, coating and advanced manufacturing. to enrich and share our accumulated knowledge, nypro has sponsored symposia on sustainable topics in the plastics industry. nypros technology team shares innovations through the release of technology spotlights for our customers, employees and partners. this knowledge management outreach enables us to continue evolving as a leader in technical innovation for sustainability, providing shared value across the value chain for our business partners
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customers

and society at large.

At Nypro, responsibility to our customers, our people, our communities and our planet matters.

c a se s t u d y t H e r e p l e n i s H system the ecological impact of packaging for household liquids is a challenge for consumers, retailers and manufacturers who are seeking products with minimal environmental impact. traditionally, most containers for household liquids have been single-use, heavy to transport and not designed for end-of-life reclamation which makes them liable to end up in landfills. responding to these concerns, the founder of the replenish system came to radius product development, a nypro company, with the challenge to design and manufacture an entirely reusable and recyclable system that could reduce the burden on both the planet and consumers wallets. the radius-designed replenish spray bottle is a sustainably-evolved, two-part bottle and pod concentrate system. by snapping a pod of liquid concentrate (household cleaner, laundry liquid, etc.) onto a durable, reusable bottle, inverting the bottle and filling it with tap water, a consumer receives the equivalent of four traditional bottles from a single pod. the result is an innovative and unique product that uses 90% less plastic and produces 90% less carbon than standard spray bottles throughout its life cycle. the replenish system gives customers four times the product, contains biodegradable and non-toxic liquid, and at the end of its useful life, can be dropped into any recycling bin, closing the loop.

case study flo flo enables mobile phones to deliver powerful graphics on enhanced displays while optimizing battery life. technological progress has placed increased strain on batteries, as consumers demand fast G-plus connection-speeds and high-resolution displays. nypro approached this problem from a systems-level approach, deriving a solution from the same process used to create optical disk media. the flo platform quickly and efficiently delivers clear, light and strong screens with machines designed for compact disk production. these thin, durable screens use less power to illuminate graphics and text, helping to stretch battery life and providing shared value by ultimately reducing energy use.

The result is an innovative and unique product that uses 90% less plastic and produces 90% less carbon than standard spray bottles throughout its life cycle.

c a s e s t u d y pa i n t l i n e s traditional methods for painting plastic components used to spraycoat one part at a time, both slowing production and resulting in low paint transfer efficiency. when nypro became a major manufacturer of mobile phone parts in the 1990s, we demonstrated an ingenuity that ultimately spurred our rapid growth. in short, nypro developed a manufacturing solution that increased throughput and asset utilization, while decreasing waste. we re-engineered the paint line process to produce twelve times as many components by layering and rotating the parts as they travelled down the paint line. this method dramatically increased production capacity, while using less energy and producing less paint waste another example of shared value to nypro, our customers and our society.
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customers

case study maxis tm in recent years, demands of the consumer electronics business have

Nypro developed a manufacturing solution that increased throughput and asset utilization, while decreasing waste. We re-engineered the paint line process to produce twelve times as many components by layering and rotating the parts as they travelled down the paint line.

dramatically shortened production cycles while still requiring complex part designs for intricate devices. nypros maxistm modular precision injection tooling platform represents the convergence of manufacturing and business innovation to create shared value for nypro, our customers and our society. a highly optimized and reconfigurable modular tooling platform, maxistm uses a systems approach product development cycle, delivering products in half the time of traditional methods. despite a break-neck production pace, maxistm still allows product design evolution during ideation and conception. the maxistm systems approach demonstrates nypros ingenuity to create a world-class value chain to deliver scalable and sustainable manufacturing solutions globally.

c a se s t u d y b i o c o at i nGs applying embellishment and coatings to plastics parts requires the use of solvents. these compounds usually contain high levels of volatile organic compounds (vocs), which evaporate into the air and result in potential health and environmental damage. traditional processes can require multiple coats, compounding the damage. as an alternative, nypro has developed offerings of biocoatings or monocoatings, both of which release fewer toxic emissions. biocoatings reduce environmental impact through their use of renewable material and lower-emission solvents. monocoatings combine paint and topcoats, halving the time, emissions and pollution generated for each component. this initiative further exemplifies the beneficial relationship between nypros efforts toward sustainability and the health and safety of our customers and our planet.

Biocoatings reduce environmental impact through their use of renewable material and lower-emission solvents. Monocoatings combine paint and topcoats, halving the time, emissions and pollution generated for each component.
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our people
Ethical behavior is at the root of all Nypro decisions and actions.

People are unequivocally Nypros most valuable asset. the consistent dedication shown by nypro employees separates
us from our competitors, and always has. our priority is a safe and healthy workplace where diversity is respected as well as promoted. we encourage individual aspirations for professional development and provide training and advancement opportunities to facilitate these desires.
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year over year safety performance

(all nypro manufacturing sites)
1.2

s a f e t y a s c e n s i o n im p r o v e m e nt m odel ( a. i.m .) theory to practice. our safety record illustrates a comprehensive approach to safety integration. last year, the nypro accident rate was an impressive 82% below our industry average. through our new a.i.m. program, plants routinely assess their current safety status and map out a plan for continued improvement. to provide substantial facility-wide improvement, we strive to integrate safety into all of our operations. in short, a.i.m. is a system of continuing improvement, driving toward a culture of growth where employees ascend to a higher level of safety. we are proud to report a 50% reduction in recordable injuries over the past two years, on top of a safety record that was already among the best in the business.
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people
i n Jury rat e

1.0

the a.i.m. program brings nypros commitment to safety from

0.8

0.6

0.4

trir (total recordable injury rate) dart (days away restricted or transferred) ltir (lost time injury rate)

0.2

fy08

fy09

2007

2008

fy10

2010

2011

fy11

Our safety record illustrates a comprehensive approach to safety integration. Last year, the Nypro accident rate was an impressive 82%* below our industry average.
*NAICS Code 326119, 2010 U.S. Bureau of Labor and Statistics

The Ascension Improvement Model (A.I.M.)

4 6 5 2 3

Level 1
Mount Wachusett (611 m)

Level 2
Mont Blanc (4,811 m)

Level 3
Pico de Orizaba (5,610 m)

Level 4
Mount McKinley (6,194 m)

Level 5
Nanda Devi (7,824 m)

Level 6
Mount Everest (8,848 m)

Reactive Hazard Recognition Focus on Unsafe Conditions

Proactive Focus on Unsafe Behaviors

n y p r o i n t r ane t c a f e f o r e mployees ( nice ) nice is a computer-based series of kiosks, located at convenient spots around nypro facilities. nice provides employees with convenient access to company news and personal information, including new job openings, payroll and benefits information.

nypro university nypro university has been in operation for more than 30 years. based at corporate headquarters in clinton, massachusetts, nypro university also has virtual facilities at nypro facilities in asia and latin america. this past year more than 500 nypro employees and more than 100 non-employees including customers, suppliers and even competitors have taken classroom courses to help them advance in their plastics-related careers.

pr o f i t s H a r i nG a n d s t o cK owners H ip nypro has had its program of profit sharing and stock ownership for more than forty years. through this program, employees of successful nypro businesses and high performing individual employees are rewarded for their achievements. operating globally, these programs combine profit sharing based on employee-driven factors such as on-time shipments, inventory and labor expenses. special allocations of stock are distributed to employees around the world who are deemed to be performing at the highest levels.

nypro university is comprised of its own staff as well as nypro specialists who serve as faculty, and it partners with colleges and universities in the united states, latin america, europe and asia. among its offerings are certificates and degrees ranging from english for speakers of other languages to associates certificates, bachelors and master degrees.
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This past year more than 500 Nypro employees and more than 100 non-employees have taken classroom courses to help them advance in their plastics-related careers.

ta l e n t m a n aGe m e n t in addition to 25 years of success with nypro university, nypro has recently initiated a number of other talent management programs designed to assure that the skills and potential of our employees are identified and supported to bring the best possible results for them and nypro. during the past year, an intense skills assessment and development project was introduced worldwide throughout the company. this has been accompanied by a carefully planned succession planning program and enhanced efforts in talent acquisition and performance management to assure that nypro has the people and nypro people have the skills and knowledge necessary to achieve the companys strategic goals.
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people

satisfaction surveys annually, nypro conducts an all-employee survey which provides employees the opportunity to provide valuable feedback in a number of areas related to job satisfaction. this is done at the corporate level and also for all individual business units. this process has helped to facilitate the continual review and upgrade of processes and programs and their associated success and impact as perceived by employees.

confidential etH ics Hotline nypro maintains an ethics hotline and publishes a Guide to business ethics to assist any nypro stakeholders in making ethical decisions about the business and in reporting any concerns that they might have about the ethics of actions or activities by members of the nypro community.

G l o b a l b a n d i nG over 56 years, nypro grew from less than a hundred people at one facility in clinton, massachusetts to 41 locations in 14 countries employing more than 17,000 people. to assure that all nypro employees are treated fairly and as equally as possible in terms of compensation and available benefits, a global banding project was completed over the past three years which has resulted in grouping all employees worldwide into a series of job level bands with equivalency standards applied for relative pay and benefits. all employees know that the nypro people with whom they interact in other lands and other languages are being compensated in roughly equal terms to themselves for the same types of effort and results.

separate telephone numbers for 12 different global regions are available to employees and other persons interested in nypro to report suspected unethical, illegal or unsafe activity. anyone can email the ethics Hotline at www.tnwinc.com/nypro or call in the united states by dialing 866-697-7699.
please see page 3 for the complete statement on nypro values and core beliefs.

l e a d e r i n s u p p ly c Ha i n di versity: n ypro Knaa K nypro Knaak represents a partnership between the sealaska corporation and nypro, with the goal of delivering customers the highest quality custom injection molding and enhanced supply chain diversity. for over a decade, the nypro Knaak companies have provided superior manufacturing solutions as both a certified minority business enterprise and small disadvantaged business to companies such as proctor and Gamble, Honeywell and dell computers. nypro Knaak is majority-owned by sealaska which is wholly owned by the first peoples of alaska. sealaskas 20,000 shareholders are comprised of members of alaskas tlingit, Haida and tsimshian tribes guided by their collective traditions of environmental stewardship and community. these native alaskan tribes are legendary traders who are deeply connected to their lands which has enabled them to successfully adapt to constantly changing environments and global economies. they bring together wisdom and foresight of their combined heritage to create an enduring corporation that provides business opportunities, benefits and cultural strength for their people. nypro Knaak provides the best of both worlds superior custom injection molding with the benefits of supplier diversity. nypro Knaak unites the wisdom and foresight of two companies combined heritage: nypros core value of exceptional customer service and expert manufacturing abilities, and sealaskas native alaskan values. as a certified minority business enterprise, nypro Knaak can assist customers in meeting their diversity supplier requirements. daily operations and majority ownership rest with sealaska, fulfilling diversity regulations for state and federal government contracts. while our status can help customers meet their required goals, the real value of our diversity is the strength of creativity and innovation we bring to the table every day. these core competencies provide a crucial strategy and performance to meet customer needs in todays diverse marketplace.
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today, sealaska is the largest landowner and for-profit private employer in southeast alaska with over $300 million in assets. dividends from sealaskas profits allow sealaska to provide economic, cultural and social benefits for native alaskan peoples.

Nypro Knaak unites the wisdom and foresight of two companies combined heritage: Nypros core value of exceptional customer service and expert manufacturing abilities, and Sealaskas Native Alaskan values.

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our communities
Over the years, we have learned that a company is only as strong as the communities that host it.

With 41 locations in 14 countries and 17,000 employees worldwide, nypro has a geographically-dispersed impact
on communities around the globe. in recognition of the role that our communities have in nypros performance, we are dedicated to engaging and meaningfully giving back to our hosts through local outreach programs and charitable offerings. we encourage employee involvement in activities that improve communities wherever we operate and support programs that strengthen our hometowns globally.
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supportinG tomorrows leaders for inspiration and recoGnition of science and tecHnoloGy (first) for 21 years, nypro has been a sponsor of first, an international competition where high school students vie to build the best robot in a sports-like challenge. each year, nypro employees team with community volunteers and parents to mentor students from clinton High school in the clinton High school/nypro first robotics team. nypro has contributed more than $2 million in financial support and donated 23,000 employee hours toward this endeavor, and the investment has certainly paid off. the Gael force team has won 18 awards and championships, the students have earned $300,000 in science and engineering scholarships and one national championship team even got to meet the president of the united states in the rose Garden at
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communities

nypro foundation nypro established the nypro foundation to put its spirit of service into action by supporting charitable organizations important to nypro communities and team members. since 1999, the foundation has awarded more than $1.5 million to not-for-profits working in health and human services, education, arts and culture and disaster relief. over the past decade, the foundation also has spearheaded employee drives to respond to humanitarian disasters around the world with generous donations toward relief efforts. as part of its long-term vision, nypro supports tomorrows leaders in scientific and technological innovation. nypro recently donated more than $300,000 to science education in massachusetts universities.

the white House. nypros participation in first demonstrates true shared value. by sharing the expertise of its employees, the company is helping to drive tomorrows technical innovation and developing leaders for the future. more than 20 first alumni have joined nypro as employees.

Since 1999, the Nypro Foundation has awarded more than $1.5 million to not-for-profits working in health and human services, education, arts and culture and disaster relief.

GivinG at nypro

$1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

nypro i reland
Health/Human services education disaster relief community/civic arts & culture

nypro ireland is a healthcare technology manufacturing facility located in bray, ireland. last year, more than 21 clubs, groups, charities and societies across a broad spectrum were supported by nypro ireland either directly or through our employees. one inspired employee climbed mount Kilimanjaro in aid of healthcare projects in ireland and abroad. additionally, we are involved in sponsorship programs with two local soccer teams and have partially funded a youth club trip for 45 local children under 11 to visit a premiership match in the uK.

the above chart shows the distribution record of the nypro foundation. community/ civic organizations have received $591,453; educational groups have received $410,540; Health and Human services organizations have benefitted from $292,782; arts & culture groups have received $108,860 and $57,500 has gone to disaster relief.

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H a b i tat f o r H u m a n i t y supporting the communities that support us is both a responsibility and a privilege. this year, the nypro packaging Group joined with Habitat for Humanity to help build homes for families in need. nypro employees in massachusetts and north carolina spent three days constructing homes and building team spirit for the company and their towns. to help, nypro donated its employees time and the cost of construction materials. nypro intends to continue its relations with Habitat for Humanity by assisting in the construction of homes in five more communities where nypro packaging operations are located. our long-term goal is for every employee to have the opportunity to put their passion for service into action by building homes side-byside with co-workers, Habitat volunteers and local families.

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our world
At Nypro, we are responsible stewards of the environment. We strive to meet or exceed all applicable regulatory requirements in all areas where we operate.

As a global manufacturer with 41 locations in 14 countries and over $1 billion in annual sales,
nypro recognizes that our operations have a wide environmental impact. compliance with regulatory requirements at all levels to assure that we are operating legally is very important to us. we achieve this through the selection of renewable resources, the improvement of technology and processes in our operations and by working with customers and suppliers to do the same. our commitment to this concept has been institutionalized with an environmental, Health, safety and sustainability department, with corporate and business unit sections around the world. our focus is to maximize shared value to our people, our customers, our communities and our world by reducing our carbon footprint, increasing clean energy generation and use, reducing natural resource use and driving a green supply chain. we respect the communities that host us.
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el e c t r i c i t y a n d wat e r me a s u rements it has been said, whats measured, matters, and its true. for several years, nypro has tracked our energy and water usage from each of our 18 manufacturing sites. we know that by taking notice and marking our progress, we can use the data to create meaningful, verifiable goals to improve our long-term production sustainability.

environmental i mprovement plan nypros new environmental improvement plan (eip) is a centralized system designed to track environmental performance at nypros production sites worldwide. the system simplifies reporting for environmental managers, and facilitates nypros ability not only to meet, but to exceed, environmental compliance laws around the globe.

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Nypro enacted an Energy Blitz last year with the ambitious goal of $1 million cost avoidance. Our performance during the first year of this program has surpassed our short-term objectives and left us confident the foundation weve laid will pave the way for us to meet our longer-term objectives of world-class environmentally efficient operations.

first year at-a- Glance

Kilowatt Hours used. . . . . . . . . . 320,420,384 efficiency improvement . . . . . . . . . . . . . 2.7% Kilowatt Hours avoided . . . . . . . . . 8,033,440 cost avoided . . . . . . . . . . . . . . . . $1,284,992 carbon avoided (metric tons) . . . . . . . . 4,726 annual autos avoided . . . . . . . . . . . . . . . 901

s Har e d va l u e tH r o uG H a n e ner Gy b litz exploring ways to cut electricity consumption not only makes good business sense, it saves customers money, increases profits and creates a healthier community and environment for all of us. nypro enacted an energy blitz last year with the ambitious goal of $1 million cost avoidance. we focused on improving production efficiency through baseline energy audits, high-efficiency lighting, automated controls, switching to compressed air and insulating machine components. employees at every level have diligently contributed to this initiative by taking personal responsibility for things like turning off unused devices, following proper shutdown procedures and turning off lights when leaving the room. sites that act to lower their energy usage are recognized as leaders in the company and held up as an example.

adaptive reuse of t He old m ill the face of nypros commitment to sustainability is perhaps best encompassed in a 171-year-old, beautiful, landmark brick and wood former carpet mill. when nypro needed a new location in 1972, we had two requirements economical and sustainable. rather than build a new structure, nypro recycled the historic bigelow carpet mill for our clinton, massachusetts corporate headquarters. by renovating the buildings 16acre interior, nypro saved on new material and kept hundreds of tons of bricks and beams from occupying a landfill. by keeping the mill standing, now on the national register, nypro helped preserve the communitys history, while providing both employees and visitors physical evidence of our long-standing commitment to sustainable development.
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enerGy b litz at-a-Glance

180,000 160,000 $1,767 140,000 tHousan ds ( kwh) 120,000 100,000 80,000 60,000 40,000 20,000 0 $1,674

$2,230 $1,285

$2,500

$2,000 tHousa nds ( $)

$1,500

$1,000

$500

Q1

2006 Q2

2007

2008Q3 2009

2010

2011 Q4

$0

fy11 sales

fy10 sales

costs avoided

renewable p ower mebane, nc last year, nypros packaging plant in mebane, north carolina celebrated the installation of nypros first alternative-energy generators for clean, renewable energy from solar and wind power. these new sources of power provide equivalent energy to operate several of the injection molding machines at the plant. clean energy generation reduces exposure to escalating energy prices, which transfers into long-term savings and production predictability. these investments represent only the first step in nypros transition to renewable energy sources, and one small part of our efforts to provide genuine shared value to our business and our society by reducing our carbon footprint. additional initiatives from mebane include: an upgrade of 28% of the fleet to state-of-the-art all electric molding machines; the replacement of outdated sodium ware26
world

house lights with high efficiency florescent lights improving both energy efficiency and creating a safer work environment; the recycling of manufacturing (plastic) scrap to reduce landfill waste; and the migration to an electronic invoicing and payments system for 100% of our suppliers.

Nypros Packaging plant in Mebane, North Carolina celebrated the installation of Nypros first alternative-energy generators for clean, renewable energy from solar and wind power.

su s ta i n a b l e t e cH n o l oG y and i nnovation a natural starting point for nypro in its pursuit to become as sustainable as possible has been to examine all points of the life cycle for the products that we make from concept development through end-of-life. through front-end integration, our approach is to develop solutions based on a full life-cycle and combine our extensive knowledge in design, materials, manufacturing, tooling technologies and end-of-life use with the capabilities of our strategic supply chain partners. this enables us to develop products and solutions that are truly sustainable in their manufacturing, performance and end-of-life reclamation. looking to the future, our researchers are making strides in processing bio-based plastics and coatings that contain no petroleum, the raw material for most plastics today.

i nvestin G in clean ener G y electric injection molding machines use less electricity than their hydraulic counterparts. while this might seem counter-intuitive, there are a number of reasons for it. the primary reason is that electric machines can be controlled to turn on only while they are actually in use producing parts, while hydraulic machines must stay turned on to keep the hydraulic oil viable. over the past ten years, nypro has converted most of our machines in the size range under 300 tons of clamping pressure to electric machines. now our Global supply chain and packaging Group is working with machine suppliers to create an all-electric 500-ton injection molding machine that will be optimized for packaging production. this projects success will allow the adoption of efficient, sustainable electric machines throughout our fleet.
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a b o u t tH i s r e p o rt at nypro, sustainability is a long-term strategic approach to balancing business opportunities with social, economic and environmental responsibilities. it is about making shared value work for ourselves, our customers and our world. this report is the first of its kind for nypro. we have tried to model it on some of the reports of our distinguished customers, recognizing that we are much smaller and considerably less experienced at this type of reporting than they are. the information in this report comes from reporting within the company from departments involved in sustainability efforts. any numbers provided are derived from the best available information, but have not been subjected to the type of inscrutable auditing that a reader would expect from our financial reporting. we intend for this report to set a solid foundation in the tracking and accountability of our sustainability performance. we will refine our progress reporting and continue to improve upon our sustainability efforts as a company. we recognize that we have much work ahead of us.

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neenaH paper environmental impact audit results
Classic Crest Papers color: recycled 100 bright white paper weight: 80 lbs. text post consumer content: 100% quantity: 325 sheets (12" x 18") Classic Crest Papers color: recycled 100 bright white paper weight: 100 lbs. cover post consumer content: 100% quantity: 75 sheets (12" x 18")

with this sustainability report, nypro will save the following resources: 73 lbs. of wood, which is equivalent to <1 tree that supplies enough oxygen for <1 person annually. uses 100% certified renewable electricity

107 gallons of water, which is enough water for 6 eight-minute showers. 74,021 BTUs of energy, which is enough energy to power the average household for <1 day.

environmental impact estimates for savings pertaining to the use of post consumer recycled fiber are based on the environmental defense fund paper calculator and research done by the paper task force, a peer-reviewed study of the lifecycle environmental impacts of paper production and disposal. calculations based on research by environmental defense fund and other members of the

6 lbs. of solid waste, which would fill <1 garbage can. 22 lbs. of emissions, which is the amount of carbon consumed by <1 tree seedling grown for 10 years.

paper task force. registered trademarks of neenah paper, inc. neenaHpaper.com

f o r m o r e i n f o r m at i o n, p lease contact t He n y p r o s u s ta i n a b i l i t y council chair, senior director of corporate environmental, Health and safety & sustainability kristine.lesso@nypro.com supply chain rashid.shaikh@nypro.com research & development mike.mcgee@nypro.com Healthcare Group robert.gottlieb@nypro.com consumer & electronics Group david.voorde@nypro.com packaging Group nathan.stephenson@nypro.com union street brand packaging andy.simon@nypro.com Human resources schweta.karnik@nypro.com communications al.cotton@nypro.com radius product development ryan.hall@radiuspd.com

Nypro Inc. | 101 union street | clinton, ma 01510 | tel: 978.365.9721 | fax: 978.368.0236 | nypro.com