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HomeMy WebLinkAbout1996 Ryder's Environmental Progress REport V IRON M E N TA L W E DON`T° } INHERIT THE EARTH PROGRESS FROM OUR T. Al PAR y� WE BORROW IT R EPORT FROM OUR CH I LDREN. RYDER'S 1996 ENVIRONMENTAL PRO6RESS REPORT THIS Is Ryder's first report detailing environ- mental performance. This report describes how Ryder is meeting current and future environmental challenges while achieving profitable growth through responsible and innovative environmental practices. The report follows guidelines established by the Public Environmental Reporting Initiative (PERI) and includes data collected through June 1996, unless otherwise noted. PERI is a voluntary effort to provide guidelines for meaningful environmental reporting. e This report is dedicated to: For additional information or Jim Herron extra copies of this report contact: Fred Stuever, and Ryder Environmental Services Department Arlene Brummer 3600 N. W. 82nd Avenue Miami, FL 33166 Attn: Nanci Tellam, Sr. Manager Environmental Services RYDE:R'S ENVIRONME w COMMITMENT 1986 An environmental professional 1993 Implementation of national pollu TABLE OF CONTENTS joins Ryder as the first employee to work tion prevention program to reduce waste full-time on environmental issues. and achieve a goal of I00% recycling of all waste. Environmental auditing pro- COMPANY PROFILE 2 1987 Ten year tank management plan gram for Ryder facilities launched. developed to upgrade 3,000 underground storage tank systems across the United 1994 Commitment to environmental MESSAGE FROM CEO 2 States. excellence outlined in corporate marketing materials and incorporated INTRODUCTION 3 1988 Plan implemented to upgrade or in customer survey materials. Canadian remove petroleum storage tanks. Nation- tank management plan developed and wide remediation program started in U.S. implemented. - ENVIRONMENTAL. MANAGEMENT SYSTEMS 4 1990 Senior environmental manage- 1995 National environmental awareness ment committee convened to review cor- training program for regional sales and porate resources dedicated to minimizing marketing professionals launched after ENVIRONMENTAL IMPACTS 7 - 10 , negative impacts on the environment and 71% of customers polled identified envi- preserving natural resources. First com- ronmental regulations as biggest chal- prehenSive environmental management lenge for the 9o's. Development and MANAGING RISK AND LIABILITY 11 - 12 system review conducted by Arthur D. implementation of the United Kingdom Little, Inc. Center for Environmental tank management, training and auditing Assurance. program. COMPLIANCE PROGRAMS 13 1991 Environmental Policy Statement 1996 Ryder's first Environmental PRODUCT STEWARDSHIP 14-15 formally adopted outlining specific goals Progress Report is developed. Training and objectives. and auditing program implemented in Canada and developed for Argentina GOALS 16 i 1992 Formalized environmental protec- and Brazil. tion policies distributed to all operations worldwide delineating employee respon sibility areas, corporate policies and p rocedures. 1992 National field based environmental training program implemented for front line managers and other employees. t� 1992 Preferred vendor program adopted. t Audited and approved waste vendors r" F required for all waste streams. Preference s _ given to vendors utilizing re -use and recycle technologies. 1 MESSAGE FROM TONY BURNS COMPANY • RYDER HAS undergone a major change in J9 the way it thinks about environmental issues. Our initial risk -based management Ry der ' ' ' strategy evolved from an immediate tered in Miami, Florida, need to correct problems and improve ! . ! ,. compliance. Although the volume of r r environmental laws impacting our busi- of highway trans portation ness made it difficult to move from a and logistics services in the compliance focused approach to a proac- world. Founded in 1933 with strategy aimed at reducing long -term exposures, this was our mission. only one o++ Corporate environmental strategies can h as ' " •' • have profound implications on the way provid vehicles and , companies develop, use and dispose of portation and logistics services the products they purchase. thr oughout ' ' ment of our environmental man Progressive companies are g Can ada , Puerto Rico Mexico systems. This means improving our looking at green designs and ability to measure performance, bench- the " processes because the are more P y mark progress and incorporate environ- Germ any, Poland, Brazil and efficient and cost effective, not mental costs into business decisions at Ry der + ! because they are being forced to all levels of the organization. .. • • people worldwide and by regulatory mandates. This report shows our progress to date. As our management system evolves we serves approximately 20,000 Today our objective is to manage for will continue to improve our data collec- cust omers. As of December tion and reporting capabilities. I look assurance and position environmental p g P 1 995 , + . ! + + issues as an integral part of customer forward to hearing your comments and value and competitive advantage. questions. revenues, and assets of $5.89 I ! b illi o n Ryder's environmental management Thank you! billion. Ryder System common strategies are designed not only to ensure compliance with regulatory requirements st ock, + + "+ on but to improve the bottom line. Senior M. Anthony Burns Exchang New York Stock management has accepted and actively Chairman, President promoted the viewpoint that Ryder's Chief Executive Officer + component of ' ' ' environmental programs are good for ' o ! r's Transportation the environment and good for business + o o because they improve our long term SR f the twenty profitability and provide benefit to our st ocks + comprise Dow ' customers! In order to maintain our posi- J ones Transportation + tion as an industry leader we must `,• remain committed to continual improve �� ��4 �k 2 6 , A INTRODUCTION TO RYDER'S ENVIRONMENTAL STRATEGY RYDER RECOGNIZES that being environ- mentally responsible requires a commit- ment to move beyond compliance with environmental laws and regulations. Only by integrating environmental prac- tices into everyday business operations can environmental management pro- grams succeed in improving operating efficiencies, reducing costs and minimizing negative environmental impacts. While Ryder has always been committed to good environmental practices, in past years the Company managed environ- mental and compliance issues from a reactive position. Recognizing that a �► Effective management systems that •spill response more proactive approach would reduce routinely: • toxic use reduction ' risk and build value for the Company, • identify and correct problems • trust fund reimbursement senior management commissioned the • investigate incidents • site remediation Arthur D. Little Center for Environmen . verify specialized training needs Oversight and control programs tal Assurance (Little) in 1991 to evaluate . manage compliance including site assessments and Ryder's environmental management pro- . document and report performance facility audits grams. Little found that Ryder's environ- mental performance was not consistent A formal planning strategy that iden- In a follow -up review conducted in with the Company's`long term business tifies emerging environmental issues 1994, Little concluded'that tremendous interests and that improvements were and encourages alignment with over- progress had been made and that senior needed. all business development needs management remained committed to the objective of making Ryder's environ- Ryder responded by forming the Formal risk management systems to: mental management program the best Environmental Policy and Advisory (EPA) • identify hazards and assess risk in the transportation and integrated Committee to assist the Company in • establish priorities logistics industry. planning and directing environmental • track performance programs. Improvements have continued • handle emergencies Our challenge today, and in the future, since that date and today Ryder's environ- • obtain appropriate insurance is to maintain the momentum that mental program includes: Regulatory surveillance programs to established Ryder as an industry leader �► in developing environmental programs. �► Appropriate quantity and quality of monitor and influence changes in This Environmental Progress Report, resources to address environmental environmental laws and regulations risks including: our first, is intended to document our • ongoing employee training and " Environmental reviews for capital progress toward this goal. It represents awareness programs expenditures, research and develop- an ongoing commitment to keep • identified line responsibility for ment projects, property acquisitions employees, customers and stockholders environmental initiatives and divestitures informed about our environmental ' • clearly defined, broadly communi- iii Issue specific management programs challenges and accomplishments. cated policies and procedures for: • clearly defined roles, responsibilities • waste management/ minimization and accountability for environ- • underground storage tanks mental staff • Superfund { e W ENVIRONMENTAL MANAGEMENT SYSTEMS AT RYDER, our goal is to have environ � mental management play a key role in business planning and employee perfor- Mance evaluations at all levels of the organization. This helps ensure that environmental policies are integrated into the business process. It is with this understanding that Ryder has created a corporate Environmental Policy and implemented specific environmental management programs designed to create long -term cost - savings and value for our customers. ENVIRONMENTAL POLICY n e DEVELOPED FOR WORLDWIDE OPERATIONS In 1991, Ryder formed an Environmental Policy and Advisory (EPA) Committee. One of the Committee's first tasks was to develop a corporate Environmental Policy which was formally adopted by MANAGEMENT STRUCTURE The Environmental Services (ES) Ryder's Executive Committee in 1992. Ryder's commitment to developing Department consists of fifteen full-time Policy directives establish baseline envi responsible environmental practices is environmental professionals supported ronmental standards for all Ryder shared by employees at all levels of the by three 'environmental attorneys in the businesses worldwide and serve as the Company. In order to send a clear Company's Law Department. Ten ES cornerstone of Ryder's overall environ message to every Ryder employee that employees are regionally located mental philosophy of going beyond com a strong environmental management throughout the U.S. to provide Ryder pliance and managing for assurance and program is good for business, senior facilities with guidance on implementing continuous improvement. In 1993, management has aggressively corporate programs and policies. this policy was incorporated into the supported environmental initiatives. Company's Corporate Conduct Within each operating unit, environ- Guidelines. The Senior Executive for environmental mental oversight responsibilities are To support operations in meeting envi- programs worldwide is the Group assigned to facility and area managers ronmental goals, Ryder developed and Director of Environmental Services who as part of their regular duties. These distributed an Environmental Policy and reports directly to the Senior Executive front -line managers are responsible for Control (EPC) Manual in 1992. The EPC Vice President and General Counsel training employees, implementing Manual defines corporate environmental who in turn reports directly to Ryder's policies, assessing program effectiveness, policies and provides step -by -step guid- Chairman, President and Chief Exec- responding to emergencies and ance for the implementation of environ- utive Officer. This reporting arrange- monitoring environmental compliance mental management practices. ment places the environmental organza= at their locations. This structure is one tion in a strong position to secure man- way that Ryder integrates environmental agement support for environmental pro- management issues into daily business grams. Each year the Board of Directors operations. receives an environmental status report. CREATING SUSTAINABLE PROGRAMS - Ryder's quality control INTEGRATING ENVIRONMENTAL NEEDS WITH BUSINESS OBJECTIVES principles are more than Because business decisions have environ mental impacts and environmental just good management, issues impact business positively and they provide a systematic, negatively, it makes sense to integrate environmental management into daily continual way to measure business operations as much as possible.' By introducing environmental strategies and improve environmental early in the business development best management practices. process, Ryder has been able to develop efficient, cost- effective services and reduce negative environmental impacts for the future. COMMUNICATING ENVIRONMENTAL The use of these principles The challenge going forward is to AWARENESS TO EMPLOYEES, identify more ways to encourage business VENDORS AND CUSTOMERS throughout the Company growth through environmental initia- In addition to Ryder's formalized envi- has contributed to reduced tives. Ryder is meeting this challenge ronmental training program, employees, with programs designed to enhance vendors and customers are routinely environmental impacts, lower updated on new environmental regula environmental awareness and improve P accountability internally and with tions, Company requirements, enforce- operating costs, increased vendors. ment activities and management tips profits and improved through various Ryder publications INTEGRATED TRAINING MATERIALS including Environmental Alert bulletins. efficiencies. As part of Ryder's integrated approach These articles educate and inform on to training, field training materials are how proactive environmental programs designed to address environmental, and outstanding personal efforts result in safety and maintenance procedures cost saving benefits. simultaneously. For example, Ryder's self- study course on preventive maintenance provides information on how to properly handle, store and dispose of waste A .P materials that are generated during routine maintenance activities. Incorporating ..• Quality - Management Principle r g s into - Environmental r Management 6. &' Techniques Not only does Ryder REWARD AND RECOGNITION ENVIRONMENTAL POLICY PROGRAMS Each Ryder System company shall senior management support Another way Ryder drives environmental conduct its worldwide operations in awareness throughout the Company is compliance with all applicable health and environmental programs with achievement awards that recognize environmental protection laws and in a in principle, they also back environmental excellence among manner which supports the protection employees and vendors. Employees are and preservation of human health and initiatives with Significant recognized for their success in integrating the environment. environmental management practices capital investment. with everyday operations. An Employee SUMMARY OF DIRECTIVES Environmental Excellence Award is given In support of this policy, and to protect to the employee who demonstrates out- its employees, customers, shareholders, standing personal achievement in further- - directors, and assets Between 1991 and 1996, ing Ryder's environmental objectives. Vendor applicants are evaluated based Ryder will: Ryder spent more than $157 on their success in reventin pollution p g p Promote environmental awareness million an environmental through reduce, reuse and recycling solu- among all employees, assure proper tions. The Vendor Environmental Award materials management at every Ryder programs including capital is given to the vendor or supplier who facility and implement waste manage- best exhibits sustainable initiatives that ment practices at all Ryder facilities; investments, remediation further environmental excellence. Environmental performance is also one Perform an appropriate environmental costs and routine operating criteria used in evaluating and acknowl- assessment of every company and /or expenditures for environ- edging maintenance excellence annually. property proposed to be acquired by Ryder prior to occupancy; mental permits, storage ENVIRONMENTAL POLICY l tanks and waste re n g• STATEMENT ;0 Encourage all providers of products ` c c .y Ryder's Environmental Policy establishes and services to Ryder to develop pro- minimum performance standards and grams that consider life -cycle impacts general guidelines for all operations. Each of their products and services; business is responsible for conducting Environmental Expenditures operations in a manner which supports f Require all providers of environmental Operating, Capital and Remediation ' the directives set forth in Ryder's services to meet the minimum stan- Environmental Policy. Corporate support dards described in Ryder's standard 30 Dollars tin thousa of policy initiatives is backed by substan- professional services agreements; tial resources including an Environmental Services Department. comprised of fifteen Incorporate waste minimization and 20 professionals. resource management as an integral part of environmental planning when io defining project specifications and business operations; 0 91 92 93 94 95- 96` Total is $157,039 6 ENVIRONMENTAL IMPACTS # Perform periodic-reviews of Company facilities and environmental services . providers to assure compliance with established Ryder policies and procedures, and applicable laws and regulations; Develop and maintain formal emer- gency and spill response programs, and notify applicable governmental agencies as well as appropriate d division personnel regarding reportable releases; ;F Actively support sound legislation 3 and regulatory initiatives in health and environmental protection; W Provide an annual corporate environmental report to the Board of SINCE THE IMPLEMENTATION of Ryder's focused on the management of non- Directors Committee on Directors Environmental Policy, the focus of hazardous waste associated with vehicle and Public Responsibility; waste management programs has maintenance and fueling activities. shifted from a concern over how to dis- Typically these waste streams include Develop an environmental policy pose of waste responsibly to identifying automotive fluids, vehicle parts, tires and control manual including specific ways to reduce waste and pollution and waste associated with vehicle clean- environmental goals, objectives and altogether. Ryder is committed to a ing operations. procedures. strategy of source reduction or elimina- tion of waste first, managing waste Through partnerships with vendors and the implementation of technologies through reuse or recycling second, and g � G Up�t S�fO/► as a last measure, responsible treatment designed to better manage and maintain t .,f a vehicles, Ryder has achieved significant ��► and disposal. To assure the success of � 4►�, reductions in several vehicle- related �� �►� this strategy, Ryder puts a high priority a, waste streams. These waste minimiza- o w on effective reduction practices. Ryder tion achievements have not only , $, requires the same from vendors by W � reduced the costs and exposure associ- actively encouraging them to consider ated with waste disposal, but reduced io the life -cycle impacts of their products and to incorporate long -life, reuse or and expenses as well. -- �� recycle strategies in the development of F ��9 /p - UM their products and services. RYDER'S ENVIRONMENTAL POLKY WASTE MANAGEMENT STATEMENT HAS BEEN TRANSLATED The environmental challenges faced by IN GERMAN, POLISH, FRENCH AND any company are defined by the prod - SPANISH. ucts and, services they provide. Ryder's environmental efforts are primarily ENVIRONMENTAL IMPACTS Ryder continues toward its - WASTE STREAM TECHNOLOGY MANAGEMENT goal of zero landfilling Coolant /Antifreeze Reuse On -site through the use of on -site Used Oil Fuel Blending/Refined off -site and of -site recycling and Used Oil Filters Crushed/Waste to Energy On- site /Off -site Spill Clean -up Materials Waste to Energy Conversion Off -site = reuse technologies. - - - - - -- — -- - - - Refrigerants Recovery/Recycled On -site Scrap Metal -- - -- Recycled -- -- Off -site — L Used Tires Recapped /Recycled Off -site At vehicle maintenance shops, Sump and Oil/Water Separator Waste Decanting/Waste to Energy On- site /Off -site employees crush used oil filters Used Batteries Recycled off -site prior to recycling. Crushing Used Drums Reuse/Waste to Energy On -site /Off -site Used Parts Rebuild /Remanufacture On- site /Off-site filters enables Ryder to store��_,, three times more filters in a recy cling drum, resulting in ,y g g Used Oil, Used Batteries, Refrigerants (ozone depleting) oil Filters Tires fewer pick -ups and reduced 100 Energy costs. The crushers also recover % Recycled Recovery more used oil from the filters, resulting in more oil being 4 % Landfilled Landfill recycled. , 8 0 0 O A O O OI M m ^ N A S O N V O pp O n b os 16 n m rn Although the size of Ryder's fleet increased from 1993 In to 1 995 in some cases the amount of new product purchased decreased due to 93 94 95 93 94 95 93 94 95 93 94 95 93 94 95 93 94 95 Vehicles Filters Oil Fuel Anti - freeze Solvent (gallons) (gallons) (gallons) (gallons) improved inventory manage- SOURCE REDUCTION POLICY LEADS new solvent was more expensive, the ment, enhanced processes and TO BIG SAVINGS AND NEW BUSINESS extended useable life reduced the amount OPPORTUNITIES of solvent purchased by 93,738 gallons in effective waste minimization Ryder's oil filter manufacturer, responded 1995 alone, resulting in an overall cost programs. This resulted in to Ryder's Environmental Policy by man- saving of close to $400,000. ufacturing a "double life" filter. The ulti- less waste being generated mate -goal is to produce a permanent oil VENDOR CONSOLIDATION REDUCES filter for vehicles thus eliminating this COSTS AND INCREASES RECYCLIN4 and represents a savings of waste stream entirely. As a result, Ryder Ryder further improved.recycling efforts more than sgoo,000 in has reduced the amount of oil filters pur- in 1995 by consolidating waste manage- chased by 140,000 annually, and the ment services for four critical waste operational expenses during amount of new oil purchased and used streams —used oil, oil filters, parts - cleaning oil recycled by 1 million gallons a year. solvent and spill materials. By reducing this period. Going one step further, they instituted a the number of disposal providers from national used oil filter recovery/ recycling over 200 local companies to three program and awarded the national trans- national vendors and re- designing portation contract to a Ryder customer. standard vendor service requirements, What started as a response to Ryder's Ryder realized several benefits: Environmental Policy soon developed 1) lower contract prices resulting in into a new business opportunity for I savings of $2 million; - Ryder, its vendor and its customer. Zj increased recycling; and RYDER SWITCHES TO NON - TOXIC, 3) reduced staff time, expense and paper RECYCLABLE PARTS CLEANING work associated with annual vendor SOLVENT auditing. Parts cleaning solvent was targeted for waste reduction in 1995. Ryder, in POLLUTION PREVENTION collaboration with a solvent vendor, iden- The best way to manage pollution is not tified a new non -toxic cleaner which to create it in the first place. Ryder < required recycling every 12 weeks, pursues this common sense strategy by instead of the traditional 2 -4 week cycles continually improving operating efficien- ies rventive c, logistics solutions, and pe without sacrificing quality. Although the ' maintenance practices. 9 r { IMPROVING AIR.CIUALITY WITH CLEANER BURNING FUELS " KK ��r Ryder has reduced the amount of sulfer emitted from diesel powered engines by more than 3 tons per year with the use of low - sulfer diesel fuel.. Ryder began using federally mandated low- sulfer diesel fuel in 1993 and currently all diesel burning vehicles use low - sulfer diesel fuel, reduc- ing sulfur emissions by 80 %. Ryder is pursuing the use of cleaner burning fuels through its Public Transportation Services division. Contracts with public utilities such as MidAmerican Energy ,, "• involve the conversion and maintenance of Compressed Natural Gas (CNG) vehi- { cles.,Ryder participates in a number of , state demonstration projects to study the viability of alternative fuels such as CNG, soy diesel, methanol and electricity for public transit systems. Ryder is currently operating CNG vehicles in the East Providence, Rhode Island school district. This project, one of eleven nationally, is being performed in conjunction with the Rhode Island ALTERNATIVE FUELS Alternative Fuels Task Force and the U.S. Department of Energy. Alexandria Transit Company Soy Diesel Chatham ATA, Savannah, Georgia Electric MANAGING CFCs Chattanooga Area Regional Ryder is committed to eliminating the Transportation Authority, Tennessee Electric Corpus Christi, Texas Propane use of ozone depleting chloroflurocar- - -- - - - -- - - -- - - - - - -- bons (CFCs) in its vehicle refrigeration El Metro , Laredo, Texas CNG Decatur Public Transit System, Illinois Electric and air conditioning units. Because much - -- - - - - -- — - — Greater Peoria Mass Transit District, Illinois Ethanol of Ryder's fleet still relies on freon, Ryder took the initiative in 1992 to assure Greater Richmond Transit Company, Virginia Soy Diesel, Electric: Los Angeles DASH, California CNG proper handling and recovery of CFCs, by installing in -house CFC recycling Sioux Falls Transit, South Dakota Soy Diesel Sun Tran, Tucson, Arizona CNG machines at all facilities that perform air_- _- ___ —.___ conditioning maintenance and repair 2' The Metro, Cincinnati, Ohio Soy Diesel Worcester Area Transportation Company, CNG activities. More than 200,000 pounds Massachusetts. of CFC and non -CFC refrigerants were recycled at Ryder facilities in 1995. Begin -. „. -_ w:� .. ,• ., ,+ ning in 1994, all new Ryder vehicles were RYDER MANAGES AND MAINTAINS VEHICLES FOR A NUMBER OF PUBLIC SECTOR CLIENTS INVOLVED IN ALTERNATIVE FUEL purchased with non ozone - depleting DEMONSTRATION PROJECTS. refrigerants. 10 MANAGING RISK AND LIABILITIES ONE GOAL OF Ryder's Environmental site. Some locations that previously had Policy is to move beyond compliance five to nine storage tanks now have only Double - walled storage tanks management to achieve a'Company- one. This approach resulted in better wide reduction in current and future asset utilization, less risk and lower costs have been installed at all new environmental liabilities. Ryder is because there are fewer tanks to be and renovated facilities in the accomplishing this by investing in managed. advanced technology, implementing U.S., representing 38% of all aggressive environmental management By the end of 1996, 80% of Ryder's programs, performing facility self- storage tanks were in full and final underground tanks. assessments and developing centralized compliance with 1998 EPA requirements, auditing programs that promote compli- compared with the reported national ante and encourage environmental average of 40 %. accountability throughout the Company. Both the Tank Management Plan and Ryder's remediation program represent Reduction in Average Tank Remediation Costs great risk management success $250 stories. Between 1990 and 1996, Dollars din thousands) $200 Ryder reduced the average cost $150 of a site cleanup by 65 %. The $loo average cleanup cost per site in r 1996 was $74,000 compared to $ 50 $250,000 per site in 1991. This •r 01 92 93 94 95 96 savings is the result of improved TANK MANAGEMENT AND in -house project management, improved REMEDIATION PROGRAMS soil and groundwater technologies, and Ryder's ten year Tank Ryder is currently involved in approxi- reduced analytical and consulting costs. mately 620 remediation projects and has Management Plan reached 80% spent close to $128 million in remedia- completion in 1996. tion expenditures associated with under- ground and above - ground storage tanks. Remediation activities began in 1986 when Ryder implemented a tank manage- ment plan to upgrade, replace or remove approximately 3000 tanks by 1998. Using i a risk -based strategy to first identify and address tanks that represented the greatest risk, Ryder eliminated tanks by matching the size and number m of tanks to the volume usage at each f w, e 11 State Trust Fund Reimbursements 15 r d 10 d 5 2S Total $ received to date Z $6.6 million 0 94 95 96 cleanup was less that 1 /4 of 1 %. At another Ryder has developed a Vehicle Spill Kit_ STATE TRUST FUND site, Ryder was named a third -party which has been placed on all Ryder - REIMBURSEMENTS ..,,: defendant in a case which involved a insured tractors. The kit contains every- Ryder actively pursues reimbursements company that Ryder purchased in 1986. thing a driver needs for fast, effective spill for remediation-activities from state o response and has been so popular that Seven years before Ryder acquired the res P P P petroleum trust funds and has filed more than 15,000 kits have been sold to company, 1000 gallons of used oil were applications for more than $15 million. sent off -site to a location that eventually internal and external customers. One Since the program was initiated in 1991, large Ryder customer p urchased spi kits became a Superfund site. Other settle -. g y P P� Ryder has received $6.6 million in state ments have ranged from $100,000 to as for every one of its vehicles, even those reimbursements. little as $1500. leased from Ryder's competitors. RYDER CONSOLIDATES SOIL SPILL RESPONSE ENVIRONMENTAL SITE ASSESSMENTS RECYCLING EFFORTS Ryder's Environmental Policy and Ryder is involved in approximately 300 In an effort to reduce Superfund liability, Control (EPC) Manual establishes emer- property transactions per year. Because Ryder prohibits the landfilling of petro- gency response procedures for vehicular the transfer of property can create leum impacted soil generated from spills and facility releases. Ryder uses an environmental liability for both the and tank remediation projects. In 1995, emergency spill response center which property owner and operator, Ryder's Ryder consolidated its soil management operates 24 -hours a day, 365 days a year Environmental Policy requires that an programs so that only audited and ap environmental site assess - to expedite the dispatch of emergency approved vendors could transport and ment be performed for ever spill response teams to spill sites any- P y property treat soil from remediation sites. Under where in the country. Spill response acquisition or "divestiture worldwide. the new program, Ryder will save $2 teams must be audited and approved A thorough site assessment assists Ryder million annually from volume discounts in determining the current compliance prior to use. g P and the use of new treatment technolo - status of a property and identifying gies, including bioremediation. Prior to W aste No. of potential risks. This enables Ryder to this, Ryder was paying approximately $7 Used Oil 27 identify and assign site liabilities and million a year to properly recycle soil. apportion risk to the appropriate parties Solid Waste 5 before acquisition. Sites that present an SUPERFUND Mineral Spirits 4 unacceptable level of risk are not consid Ryder facilities produce small amounts Waste Water 3 of generally non - hazardous waste that ered for purchase or lease. must be aggressively managed in order Drums 4 In addition to site assessments conducted to minimize future Superfund involve - Batteries 2 in the U.S., Ryder routinely performs. ment. Ryder has been involved in 50 Scrap Metal 1 assessments in connection with property superfund sites to date; 21 are now acquisitions in Germany, Mexico, closed. Ryder's largest settlement to date Other 4 Canada, the United Kingdom, Poland, was $1.2 million which resulted from a Total 50 Argentina, and Brazil. site where Ryder's contribution to the TYPICAL RYDER WASTE FOUND AT SUPERFUND SITES , 12 ENVIRONMENTAL COM P ROGRAMS RYDER'S ENVIRONMENTAL POLICY calls for all facilities, worldwide, to conduct operations in strict compliance with applicable health and environmental protection laws. Ryder is meeting this goal with the help of environmental self - assessments and compliance auditing tools. Designated Emergency Coordina- tors at each facility are required to complete an environmental inspection annually in order to ensure compliance with an Com p policies and environmental Company laws. The results of these inspections are verified internally by the facility's Environmental Coordinator and /or the e r' Environmental Services Department. NATIONAL TANK TESTING�� ., PROGRAM , Ryder conducts annual tightness testing M on all underground storage tanks that k; have not yet been upgraded to 1998 federal compliance requirements. Storage tank failure rates average 1% each year— well under the 3% national average. i w Tank Testing Chart 2500 Number of ENVIRONMENTAL AWARENESS Training programs are developed for Tankstested zoo. TRAINING each business unit and country 1500 Ryder initiated a field -based environmen- separately. 1000 tal training program for U. S. facilities in ' 500 1991. The program, which is comprehen- Training has been provided through- 9192 93 94 95 96 sive and ongoing, focuses primarily on out Canada and the United Kingdom AS TANKS HAVE BEEN UPGRADED OR the front - line employees who have daily program is currently being finalized. REMOVED, FEWER TANKS REQUIRE responsibility for environmental compli Specialized training programs have TESTING EACH YEAR. ance. More than 3,000 employees have also been developed nationwide for been trained since the ro ram's ince p g p storm -water management, storage tank tion. The goals of the training program leak detection and liquid inventory are to provide information on regulatory recordkeeping. laws -as well as to increase environmental awareness, encourage responsibility for environmental excellence and reinforce Company environmental policies. t 1 3 PRODUCT STEWARDSHIP/ LIFE -CYCLE MANAGEMENT �r ENVIRONMENTAL STEWARDSHIP means PURCHASING to encourage accountability for environ- doing more than complying with envi- Ryder encourages the purchase of mental excellence across all operational ronmental laws: It means adopting a products that have long -life attributes areas. proactive environmental management and are: program that strives to develop sustain- 1) non - toxic, VENDOR PARTNERSHIPS FOR WASTE able products and services. Ryder's REDUCTION environmental stewardship begins with a 2) easily recycled, Ryder's purchasing guidelines have fos- commitment to reduce waste generation 3) manufactured with recycled tered new programs, services and impor- and energy use whenever and wherever post- consumer materials, and tant partnerships with vendors such as possible. Ryder does not manufacture the printer recycling program established products, but does take an active interest 4) utilizing reuse, recycling or takeback with our printer supplies vendor. At in the environmental, health and safety programs. Ryder's corporate office, used printer impacts of the products it uses to deliver drums are picked up for recycling when - transportation and logistics services In partnership with its vendors, Ryder ever replacement filters are delivered. By worldwide. This includes encouraging works to identify and develop products using remanufactured toner cartridges suppliers to consider environmental that meet these guidelines. Purchasing and long -life printer drums, Ryder has impacts and product life cycles when guidelines are routinely reviewed by sev- saved money, improved print quality and developing products. eral departures including law, safety & increased the average pages yielded per health, environmental, and maintenance cartridge by six to ten percent. field operations in an effort to contin- ually reinforce these principles and 14 - 1 By requiring the original manufacturer to reduce energy consumption and or product distributor to be responsible improve lighting quality. This change for disposal of any waste created by their reduced wattage from 400 kwh to 264 product, suppliers are encouraged to kwh per day, resulting in a 34% reduction develop longer life, no waste, low waste in power usage for lighting. In addition to or easily recycled products. the direct cost savings resulting from reduced energy usage for lighting; the WASTE REDUCTION THROUGH lamp replacements reduced heat output TECHNOLOGY which also lowered cooling costs. The Ryder's ongoing investment in advanced program significantly reduced a waste technologies also encourages waste stream, used.fluorescent tulles, and real - reduction. Ryder's. Fast Track Maintenance ized savings in both disposal and fluores- program is an excellent example. cent tube replacement costs. FAST TRACK MAINTENANCE Ryder is reducing the amount of electricity ELIMINATES WASTE, REDUCES used at vehicle maintenance and office EMISSIONS facilities by installing improved, more In 1995, Ryder launched a $33 million efficient lighting. All new vehicle mainte- New engine diagnostic re- engineering initiative to improve shop nance shops are equipped with high, tools improve fuel efficiencies support systems. Today, Ryder facilities intensity discharge lighting systems throughout the U.S. are automated so that instead of fluorescent lights to secure and engine performance employees can communicate electronical- better light distribution and more lumens ly with other locations, vendors and cus- per watt. High pressure sodium lighting is which results in reduced tomers. Using advanced technology such used for all yard lighting needs to ensure as hand -held computers, PC -based shop optimum efficiency. Lighting for new air emissions. management and CD -Rom E -doc systems, offices is based on guidelines established information can be collected and retrieved by the Environmental Protection quickly and easily. These programs have Agency's Green Lights Program which virtually eliminated paper usage from indVdes electronic ballasts, energy many shop functions. Approximately efficient bulbs and reflectors. 350,000 work orders a month and millions of pages of shop manuals are.now pro- PAPER RECYCLING duced, filed and stored electronically, Ryder's packaging and office paper eliminating mountains of paper. Detailed recycling program was first launched in' repair and maintenance records are the early 1980's before paper recycling captured from parts and labor inventory programs were popular. Each year Ryder entries allowing for automatic paperless recycles more than 300 tons of office warranty processing. paper, corrugated boxes and paper prod- ucts from its headquarters building alone. ENERGY CONSERVATION ' The goal of this program is to increase by In 1991, Ryder changed all fluorescent 30% the amount of office paper recycled light fixtures at its corporate headquarters each year. from three and four -lamp systems to more efficient two -lamp systems in order f. w 15 GOALS s i In 199% Ryder made a commitment to Ryder is pursuing an environmental have the best environmental manage - course to reflect our position as a world ment program in the transportation and leader in transportation and logistics ser- logistics industry. Environmental perfor- vices. We are striving for environmental mane has come a long way since the excellence and will continue to keep first environmental evaluation done by stakeholders informed. Arthur D. Little in 1991. Today, Ryder is Ryder looks forward to updating this well within reach of its goal. progress report on a regular basis. This success is due primarily to Ryder's pursuit of continual improvement. "While we continue to evaluate and upgrade ' 3 environmental programs, we are working to a further integrate environmental business Y needs and to improve the communication } technologies used to measure, document and report environmental performance. As the Company becomes better able to track and ' quantify environmental progress, subsequent reports will illustrate our progress from this framework." Jim Barr Group Director Environmental and Facility Services 16 INFORMATION DIRECTORY Environmental Services Department 305 - 500 -3619 Corporate Communications 305 - 500 -3187 Law Department 305- 500 -4591 ACKNOWLEDGMENTS This brochure was printed on 80 -1b stock paper of 50% post consumer recycled waste materials using soy based inks. Ryder operates on a calendar year schedule. All information developed for and provided in this report was collected utilizing in -house resources. To the extent that statements contained • herein contain management projections, estimates and opinions, such statements are inherently uncertain and the reader should use caution relying thereon. The information contained in this report is qualified in its entirety by the more detailed information contained in Ryder's quarterly and annual public filings and should be read in conjunction with such filings. r 5 :,, G Q 1 a` d • " M t � d ff N, / �� 1 ., .• ^ � � � �.: �`, .�. -tea y'xYP � k *�'" :� .. �+� �•�' Ad � :q�� - f a' Z''�'� .. �,� r �. $ ���`'. jz PIP W R °gym+ �'+' i •: 'v py _a "� 49:, , 4 • :