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The webinar will begin once everyone has joined. So, if you are early, go grab yourself a coffee / tea and biscuit. Thanks so much for joining us today. Please make sure that your microphone is on mute. Webinar by Ashfaq Syed, 19 May 2021 © 2020 DXC Technology Company. All rights reserved. May 26, 2021 1
Disclaimer DXC makes no representations or warranties about the accuracy or suitability of any information in the webinars and related materials; all such content is provided on an “as is” basis. DXC HEREBY DISCLAIMS ALL WARRANTIES REGARDING THE CONTENTS OF THESE MATERIALS, INCLUDING WITHOUT LIMITATION ALL WARRANTIES OF TITLE, NON-INFRINGEMENT, MERCHANTABILITY, AND FITNESS FOR A PARTICULAR PURPOSE. DXC hereby disclaims all liability for any claims, losses, or damages in connection with use or application of these materials. DXC does not guarantee, warrant, or endorse the products or services of any firm, organization, or person, other than its own. The information contained in these webinars and related materials has been prepared, compiled, or provided by DXC as a service to its customers and is not intended to constitute legal advice or the rendering of legal, consulting, or other professional services of any kind. Users of these materials should not in any manner rely upon or construe the information or resource materials in these materials as legal, or other professional advice and should not act or fail to act based upon the information in these materials without seeking the services of a competent legal or other professional. © 2020 DXC Technology Company. All rights reserved. May 26, 2021 2
Ashfaquzzaman (Ashfaq) Syed, Ph.D. • Science and Technology o Research, analytical laboratory management, and scientific publications • Business and Marketing in Fortune 500 companies o US, European, African, Middle Eastern, and Asian markets to lead Business- to-Business, Business-to-Consumer, and Business Process solutions o Leadership for organizational excellence and product commercialization programs including support for cross–organizational new technology projects • Information Technology o Program Executive & Applications Portfolio Manager (North America and Europe) o Currently US Region Marketing Lead for Compliance Data xChange (CDX) for automotive, electronics, heavy equipment, aerospace and defense industries © 2020 DXC Technology Company. All rights reserved. May 26, 2021 3
On May 19th Pete Townshend, Rock & Roll – The Who Birthday: 19th May 1999 - "Star Wars Episode I: The Phantom Menace" was released in the U.S. It set a new record for opening day sales at 28.5 million. 1926 - Thomas Edison spoke on 1935 - T.E. Lawrence "Lawrence of Arabia" died the radio for the first time from injuries in a motorcycle crash in England. © 2020 DXC Technology Company. All rights reserved. May 26, 2021 4
Why You Need A Product Chemical Data Compliance Management Program Dr. Ashfaquzzaman Syed US Region CDX Marketing © 2020 DXC Technology Company. All rights reserved. May 26, 2021 5
Today’s webinar Chemistry and chemicals Risks to the environment, human health, and businesses Regulations and directives requiring chemical data compliance Strategies and challenges in complying with regulations and directives Solutions and recommendations © 2020 DXC Technology Company. All rights reserved. May 26, 2021 6
Engine Bay – becomes a comfortable nest © 2020 DXC Technology Company. All rights reserved. May 26, 2021 7
Effect of chemical coatings on engine wires Wire insulation used to be made of PVC or other petroleum products, with a mixture of chromium, lead or other additives. Today, electrical wiring is insulated with biodegradable soy-based materials, as well as rice husks, wood, peanut oil, corn and other sugars. © 2020 DXC Technology Company. All rights reserved. May 26, 2021 8
Catalytic converter thefts (as of February 2021) A catalytic converter is part of a vehicle's exhaust system. It converts pollutants to less toxic material. Three precious metals inside the converter: o Platinum: about $1,500 an ounce o Rhodium: about $30,000 US an ounce o Palladium: $2,800 - $3,000 CDN an ounce Reference: Montreal, Canada based Kitco Metals Reference: An ounce of gold is currently selling for about $2,200 (1 Ounce = 28.35 Grams) © 2020 DXC Technology Company. All rights reserved. May 26, 2021 9
Prohibition under TSCA – announced on February 5, 2021 Manufacturing, processing, and use of two chemical substances have been prohibited by US EPA, effective March 8, 2021, affecting many industries Petroleum Refineries, Petroleum Lubricating Oil and Grease Manufacturing, Paint & Coating Manufacturing, Plastics Material ad Resin Manufacturing, Adhesive Manufacturing, Polish and Other Sanitation Good Manufacturing, Automobile Manufacturing, Air Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing, plus many more… Businesses now have to address this requirements Phenol Isopropylated Phosphate (3:1) (PIP 3:1); Regulation of Persistent, Bioacumulative and Toxic Chemicals under TSCA Section 6(h) • Prohibits the processing and distribution of PIP (3:1) and PIP (3-1)-containing products, the release PIP (3.1) to water during manufacturing, processing and distribution • Naming a few use: Processing and distribution in commerce for use in hydraulic fluids, lubricants and greases • After January 8, 2024: for use in parts installed in and distributed as part of new aerospace vehicles DecaBDE, chemical substance decabromodiphenyl ether (CASRN 1163–19–5) • After July 6, 2022: for use in curtains in the hospitality industry if decaBDE was added • After January 6, 2023: for use in wire and cable insulation containing decaBDE in nuclear power generation facilities • After January 8, 2024: for use in parts installed in and distributed as part of new aerospace vehicles © 2020 DXC Technology Company. All rights reserved. May 26, 2021 10
Fact – Chemicals surround us Chemical Manufacturing © 2020 DXC Technology Company. All rights reserved. May 26, 2021 11
Fact: From centuries ago to modern times, chemicals are the foundation of everything around us Pigments and Paints Discovery of bronze (an alloy created when copper is combined with tin) Discovery of Anesthetics Development and commercialization of cosmetics The bright colors of the display in a smartphone are produced by small The invention of vulcanized rubber by amounts of rare earth elements, including Charles Goodyear in 1843 kickstarted yttrium, terbium, and dysprosium. the polymer and plastics industries © 2020 DXC Technology Company. All rights reserved. May 26, 2021 12
Chemistry helps us solve many problems • Creating sustainable energy • How we get energy to power equipment • Managing our environment • Providing clean and safe drinking water • Promoting human and environmental health • Manufacturing industrial equipment and products • Transportation • Everyday technology • Medications: For example, saving lives with vaccines in case of current pandemic © 2020 DXC Technology Company. All rights reserved. May 26, 2021 13
Chemicals add cost to businesses $47 M $138 M One company’s cost in 2019 Five companies’ combined cost in 2011-12 © 2020 DXC Technology Company. All rights reserved. May 26, 2021 14
$47 Million: Cost of non-compliance WASHINGTON (September 19, 2019) ▪ Under a settlement with the US Environmental Protection Agency (EPA) and the US $47 million Department of Justice, Hyundai Construction Equipment Americas, Inc. (HCEA) and civil penalty Hyundai Heavy Industries Co. Ltd (HHI) (collectively known as “Hyundai”) agreed to for violating pay a penalty. ▪ Title II of the The settlement resolves allegations that Hyundai sold heavy construction vehicles with Clean Air Act diesel engines that did not meet the Clean Air Act emission standards. Reference: EPA Press Office (press@epa.gov) © 2020 DXC Technology Company. All rights reserved. May 26, 2021 15
And the $138 Million combined cost? $81.6 million in fines for the mishandling of products sold in its stores that became damaged or were returned—thus becoming hazardous waste • $60 million to resolve Clean Water Act violations in California, including the illegal dumping of corrosive and hazardous liquid wastes into drains • $14 million to resolve violations to the federal Insecticide, fungicide, and rodenticide Act (FIFRA) in Missouri • $7.6 million civil penalty and agreement to implement a comprehensive, nationwide environmental compliance program to manage hazardous waste generated at its stores (Siros, 2013) $138 M Cost of These fines exemplify why US retailers, like 2011: $22.50 million Walmart and Target, are becoming more non-compliance attentive to the chemical ingredients in the products on their shelves and developing 2012: $16.60 million and implementing chemical policies that challenge brands selling in their stores to 2012: $13.75 million be more transparent about chemical ingredients in their products, as well as 2012: $3.60 million avoiding chemicals of concern to human (Berlin & Sieg, 2013) health and the environment. © 2020 DXC Technology Company. All rights reserved. May 26, 2021 16
The story continues …. $150 million in lost sales and product reformulation for Sony (Lewis, Iiroff, Byrne, Booth, & Baue, 2008) In 2001, cables in Sony PlayStation game systems were found to have high levels of cadmium. Dutch authorities stopped the shipment of 1.3 million units to Holland during the highest selling season, Christmas. 18% loss in stock value, from US $20.69 on 1 August, 2007 to US $17.25 on December 28, 2007 (PricewaterhouseCoopers, ecoVadis, & InSeAd, 2010) In 2007, more than 9 million toys, including Barbie dolls, were recalled due to lead in their paint, causing $110 million in recall costs, including a necessary communication campaign. © 2020 DXC Technology Company. All rights reserved. May 26, 2021 17
Hazards of commonly used chemicals Conflict Minerals Brominated Flame Retardants (BFRs) © 2020 DXC Technology Company. All rights reserved. May 26, 2021 18
Heavy metal toxicity causes abnormal development and growth Early 1990s: European Union recognized severe heavy metal problem ELV required Miscarriages Poisoning of Automotive and birth defects the drinking OEMS selling water: Improper in EU to were increasing disposal of identify, reduce, and eliminate at considerable automobiles, appliances, heavy metals rates during electronics 1980s Automotive selected as “first” target for remediation via End-of-Life Vehicles (ELV) © 2020 DXC Technology Company. All rights reserved. May 26, 2021 19
Chemicals of concern in various products • Bromine: Used in Brominated Flame Retardants (BFRs) o BFRs are added to plastics for fire resistance. Heat and UV-ray exposure in cars can accelerate the breakdown of these chemicals and possibly increase their toxicity. o Some BFRs have been associated with thyroid problems, learning and memory impairment, decreased fertility, behavioral changes, and other health problems. • Chlorine: Used in Polyvinyl Chloride (PVC) o PVC contains chemicals called phthalates, some of which have been associated with decreased fertility, pre-term deliveries, and damage to the liver, testes, thyroid, ovaries, kidneys, and blood. o There is also evidence that phthalates can pass from mothers to babies through the placenta and through breast milk. • Lead and lead compounds: o Lead is still widely used for car batteries, paint, pigments, ammunition, cable sheathing, weights for lifting, weight belts for diving, lead crystal glass, radiation protection, and in solders for electronics. It is also often used to store corrosive liquids. o Exposure can lead to potentially many health effects, including brain damage, and problems with the kidneys, blood, nerves, and reproductive system. It can also cause learning and behavioral problems. Did you know? Automobiles have parts containing bromine, chlorine, and other heavy metals. © 2020 DXC Technology Company. All rights reserved. May 26, 2021 20
Phthalates (f-THAL-ates) – What are they? • A group of man-made chemicals, first introduced in 1920s, commonly known as “plasticizers”. Used to soften plastics and make them more flexible and durable. CANNED FOOD LINERS PLASTIC CONTAINERS EPOXY ADHESIVES CASH REGISTER RECEIPTS o Diethyl Phthalate (DEP) o Dibutyl Phthalate (DBP) • Health risks: o DBP is listed on Substance of Very High Concern (SVHC) on the European Union’s list of potential VINYL FLOORING FLEXIBLE PVC PIPES TOYS CAULKS AND ADHESIVES endocrine disruptors as well as reproductive toxicant by the National Toxicology Program and the State of California under Proposition 65. FOOD PACKAGING TEETHING TOYS PERSONAL CARE PRODUCTS SPORTS EQUIPMENT They’re in almost everything we touch, including cosmetics and personal care products, vinyl flooring, mini blinds and wallpaper, raincoats, medical equipment and devices (for example, blood storage bags and IV tubes), plastic pipes, shower curtains, plastic film and food packaging, pharmaceuticals, lubricating oils, and detergents. © 2020 DXC Technology Company. All rights reserved. May 26, 2021 21
Conflict minerals – a regulation for ethical sourcing of a few minerals Tin (Cassiterite) Tungsten (Wolframite) Regardless of source, 3TG minerals and their derivatives are known as “Conflict Minerals”, as defined by US Legislation Tantalum 3TG (Columbite-tantalite) Gold (Dodd-Frank Section 1502) and any other minerals / derivatives designated by the U.S. Secretary of State. Sales of 3TG minerals have been linked with funding killings, violence, rape, and other human rights abuses in the Democratic Republic of Congo and other conflict zones. © 2020 DXC Technology Company. All rights reserved. May 26, 2021 22
Review regulations and directives Chemistry and chemicals Risks to the environment, human health, and businesses Regulations and directives requiring chemical data compliance Strategies and challenges in complying with regulations and directives Solutions and recommendations © 2020 DXC Technology Company. All rights reserved. May 26, 2021 23
Regulations and directives businesses need to know … and be compliant RoHS2 REACH EU-SRR RoHS ELV SCiP Japan Corp Conflict RoHS Resp Minerals EU-RRR WEEE California China RoHS RoHS CA Prop 65 Conflict WFD Minerals Korea RoHS © 2020 DXC Technology Company. All rights reserved. May 26, 2021 24
Regulations – By region and year Regulations related to: • Chemicals & Substances • Packaging • Batteries • Waste • Energy & Safety USA & Canada © 2020 DXC Technology Company. All rights reserved. May 26, 2021 25
Compliance evolution of regulatory materials and substances ELV RoHS REACH WFD & SCiP Restriction of Hazardous Registration, Evaluation End-of-Life Vehicle and Assessment of Waste Framework Substances Directive & Substances Chemicals ▪ First legislation of this ▪ Ver. 1 2003, modeled on of Concern in Products type (2000) ELV, limited effect ▪ Broadest scope, most Database ▪ ELV has been & industries & ~211 ▪ “Waste Electrical / chemicals ▪ Jan 4, 2021 start of remains effective at Electronic Equipment” reporting obligation reducing the quantity (WEEE) & 2010 RoHS 2, ▪ REACH Candidate List of heavy metals in CE mark, much more “Substances of Very ▪ All products with vehicles introduced effective High Concern (SVHC’s) REACH SVHCs sold in into the environment include heavy metals, EU to be reported ▪ RoHS and Waste plasticizers, flame ▪ Target is and continue Electrical and Electronic ▪ Foundation for EU to be passenger cars retardants, etc., found Equipment Directive in all product Circular Economy and trucks as high (WEEE) further extended Action Plan, a main heavy metals categories, for example by new regulation in Tupperware™, building block of the contributors with versions during the European Green Deal limited number instruments, intervening years wiring, etc. of OEMs © 2020 DXC Technology Company. All rights reserved. May 26, 2021 26
Regulations and Directives Directive of the European Union - aims to ensure that End-of-Life Vehicles (ELVs) are managed sustainably to eliminate hazardous substances in cars. Rules require that most ELV parts and materials are reused or recycled. ELV pushes producers to manufacture new vehicles without hazardous substances particularly lead, mercury, cadmium, and hexavalent chromium, thus promoting the reuse, ELV recyclability, and recovery of waste vehicles. Directive of the European Union – Restrictions of Hazardous Substances (RoHS) aims to reduce the amount of toxic waste produced by electronics post their use; therefore, it is closely linked with Waste Electrical and Electronic Equipment Directive (WEEE). Restricts the use of six hazardous materials in manufacturing various types of electronic and electrical equipment: Cadmium, Lead, Mercury, and Hexavalent Chromium, Polybrominated Biphenyl (PBB), and Polybrominated Diphenyl Ether (PBDE) flame retardants. RoHS Worldwide includes: US California RoHS, China RoHS, Japan RoHS, Korea RoHS, UAE RoHS, India RoHS, Turkey RoHS, Norway RoHS, Singapore RoHS, Brazil RoHS, and Eurasian/Russian RoHS © 2020 DXC Technology Company. All rights reserved. May 26, 2021 27
Regulations and Directives Registration, Evaluation, Authorization of Chemicals (REACh) Regulation of the European Union - Adopted to improve the protection of human health and the environment from the risks that can be posed by chemicals. REACH applies to all chemical substances, not only those used in industrial processes, but also those in our day-to-day lives, for example, cleaning products, paints, clothes, furniture, and electrical appliances. Up to 20 Jan 2021, there are 211 substances on the SVHC candidate list. Directive of the European Union – Waste Framework Directive (WFD) sets measures to address adverse impacts of the generation and management of waste on the environment and human health, and for improving efficient use of resources, which are crucial for the transition to a circular economy. Companies that produce, import, or supply articles containing Candidate List substances have to submit information on these articles placed on EU market into a database, called SCIP database, as of January 5, 2021. © 2020 DXC Technology Company. All rights reserved. May 26, 2021 28
Reusability, Recyclability, and Recoverability The Toxic Substances Control Act (TSCA or TOSCA0) - a U.S. law, passed by the Democratic United States Congress in 1976 and administered by the United States Environmental Protection Agency (EPA), that regulates the introduction of new or already existing chemicals. Reusability, Recyclability, and Recoverability (RRR) Compliance - a Directive 2005/64/EC of the European Parliament and of the Council of 26 October 2005 on the type-approval of motor vehicles with regards to their reusability, recyclability and recoverability and amending Council Directive 70/156/EEC. RRR Ship Recycling Regulation (EU SRR) - European Parliament and the Council of the European Union adopted SRR in 2013 with an aim to reduce the negative impacts linked to the recycling of ships flying the flag of EU Member States. All EU-flagged vessels to be recycled after December 31, 2018 were required to have a Ready for Recycling Certificate. For vessels in operation and flying the flag of an EU member state, the certified IHM is EU SRR required starting December 31, 2020. © 2020 DXC Technology Company. All rights reserved. May 26, 2021 29
Regulations, Directives, and Corporate Responsibility Proposition 65 requires businesses in California to provide warning and publish a list of chemicals known to cause cancer, birth defects, or other reproductive harm. This requirement applies, regardless of whether a business is located in California or out- of-state, as long as its products cause exposures to individuals in California. Conflict minerals: A regulation and global standard for ethical sourcing of a few minerals and conflict minerals refers to raw materials that come from a particular part of the world where conflict is occurring and affects the mining and trading of those materials. In the U.S. in 2010, the Dodd-Frank Consumer Protection Act became a law. Section 1502 of that act addresses the international trade and use of conflict minerals. Corporate responsibility (CR) is about the impact an organization makes on society, the environment, and the economy. Having an effective CR program contributes positively to all stakeholders, adds value for the organization itself, and ensures it operates in a sustainable way. © 2020 DXC Technology Company. All rights reserved. May 26, 2021 30
Strategies for managing compliance Chemistry and chemicals Risks to the environment, human health, and businesses Regulations and directives requiring chemical data compliance Strategies and challenges in complying with regulations and directives Solutions and recommendations © 2020 DXC Technology Company. All rights reserved. May 26, 2021 31
Two approaches to strategies Passive Active • Involve low initial investment cost • Offer delayed investment • Require upfront investments • Incorporate minimal compliance with These actions result in: government regulations • Long-term value, staying ahead of • Ignore a few chemicals that may be present regulatory and market demands over defined thresholds in products • Knowing what chemicals are in your • Have no oversight measures products These actions result in: • Innovation, thereby generating long-term value • Supply chain management costs • Use of safer alternatives • Product reformulation • Increased transparency • Decline in sales • Opportunities for enhancing brand and • Damaged reputation increased sales • High crisis cost of chemicals management • Ease in achieving corporate responsibility • Lawsuits and settlements goals More common strategy, but leaves companies Benefits human health and environment and vulnerable to chemical crises = significant costs. demonstrates corporate responsibility. © 2020 DXC Technology Company. All rights reserved. May 26, 2021 32
Businesses actively managing compliance • Implement a robust product chemical compliance and regulatory reporting solution for their business and their suppliers • Integrate knowledge of chemicals in products and supply chains into their management systems and create value for their organizations • Do not wait for product recalls or market demands before knowing the chemicals in their products and supply chains and reducing the use of hazardous chemicals • Are ready to respond quickly to new substance restrictions • Do not have crisis-driven change and increased costs due to any product reformulation © 2020 DXC Technology Company. All rights reserved. May 26, 2021 33
Business challenges You are in the business of producing profitable products with sustainable operations. You need a solution that enables you to manage the product chemical compliance and helps you in ... • Knowing full product chemical composition • Building relationships with your suppliers • Knowing which regulations and directives must be complied with • Addressing conflict minerals issues if the product contains 3TG materials • Dealing with poor data quality (chemical ingredient information) • Achieving goals set for sustainability and corporate responsibility © 2020 DXC Technology Company. All rights reserved. May 26, 2021 34
Solutions for compliance management Chemistry and chemicals Risks to the environment, human health, and businesses Regulations and directives requiring chemical data compliance Strategies and challenges in complying with regulations and directives Solutions and recommendations © 2020 DXC Technology Company. All rights reserved. May 26, 2021 35
Why Compliance Data eXchange (from DXC) is an answer? Chemicals and product chemistry: What is the chemistry of the products I sell? CDX helps identify what is in your products, how supplied ingredients were produced, and what impact these have upon your business operations Regulations and directives: A cost-effective way to provide substantiated https://public.cdxsystem.com/en/web/cdx/home/ and defendable product declarations and compliance with regulations and directives. CDX enables Full Material Declaration Unlike most of our competition, CDX enables our clients answer the foundational question, instead of going after each regulation separately and then charging repeatedly for each regulatory topic. © 2020 DXC Technology Company. All rights reserved. May 26, 2021 36
When you select CDX … FMD with MDS Data Security CMD Multiple Regulations China RoHS2 EU-SRR RoHS TSCA Corporate Japan Responsibility RoHS RoHS WFD SCiP California RoHS REACH With CDX, a company can create, receive and evaluate EU-RRR Conflict the information required for the maintenance and Minerals WEEE ELV reporting of material compliance data within, across or Korea RoHS cross industry while protecting intellectual property CA Prop 65 © 2020 DXC Technology Company. All rights reserved. May 26, 2021 37
Proactively managing compliance requirements avoids … An example Crises © 2020 DXC Technology Company. All rights reserved. May 26, 2021 38
Benefits CDX delivers to clients Cross-industry solution Automation • CDX is accessible through the internet via a web browser and ready to use by any company in • Saves manual effort, time and money while Electronics, Automotive, Heavy Equipment, Aerospace & gaining a better overview, higher quality data and Defense faster access to information for compliance • CDX employs chemical, material and legal advisors to reporting inform supply chain participants regarding current chemical topics of concern. This service provides data • Aggregates information while providing high-level for materials manufactured to a public standard, a security and confidentiality service center and training through our partners. Security • Six layers of security: Physical and network environment protection, hardware and operating system safeguards, database and application security, as well as all access and authorization processes © 2020 DXC Technology Company. All rights reserved. May 26, 2021 39
Compliance Data eXchange (from DXC) – client benefits • Secure, centralized web application to accurately gather and analyze material content data throughout the entire global supply chain • Ability to create, receive and evaluate information required for maintenance and reporting of material compliance data within or cross industry while protecting intellectual property • Collection and maintenance of full material substance declarations across supply chain • Established, common framework that provides quality global reporting to various legal requirements whether you manufacture, assemble, or sell • Leader in multi-industry product sustainability, regulatory substance & corporate responsibility data collection, reporting • Many other product content concerns, with managed regulatory thresholds and exemptions, sunset dates, and exceptions • Leveraging proven functionality of DXC’s International Material Data System (IMDS) © 2020 DXC Technology Company. All rights reserved. May 26, 2021 40
How CDX works Dataflow via centralized database and aggregation of components Tier 3 Tier 1 Tier 2 CDX is a cloud-based Software-as-a-Service (SaaS) analytics solution for product chemical management and supply chain communication. CDX is centrally operated and supported by our company freeing you from IT consideration and constraints. Some companies may use Excel spreadsheets to manage the product data compliance requirements, this approach is typically burdensome and ineffective. As companies grow and operations grow, spreadsheets can be overwhelming and time consuming. © 2020 DXC Technology Company. All rights reserved. May 26, 2021 41
Material Data Sheet in CDX A Material Data Sheet (MDS) in CDX is a digital representation of a product with its relevant information • The Material Data Sheet (MDS) created using CDX provides a Partial to Full Material Declaration (FMD) • CDX enables standardized creation and exchange of material data sheets or product structures throughout the supply chain, supporting establishment of material management processes © 2020 DXC Technology Company. All rights reserved. May 26, 2021 42
Material declarations in CDX: Partial or Full declaration • CDX enables both o Partial Declaration, or o Full Material Declaration • The customer or industry determines o Partial Declaration: an incomplete full declaration. Only some of the ingredient information is provided and the sum of the weights do not result in the complete weight of the part o Full Declaration: complete ingredients information is provided, including all weights and percent information of the tree nodes. The weight of all parts sum up to the weight of the product. The percent values add up to 100%. MDSs can be marked as full declaration (100% declaration checkbox), and the check routine will report errors if weights or percent values are missing. Unregulated content can be marked confidential (by the suppliers) o Declaration of conformance: can be Full, Partial or a combination of both • If a Full Material Declaration (FMD) is required o A substance (or basic substance): is the building block of a tree structure. A substance is an element of the periodic table. A basic substance is a group of substances, or a compound, that appear on various environmental watch lists. If you report to a RoHS, GADSL, or REACh list, you will use substances © 2020 DXC Technology Company. All rights reserved. May 26, 2021 43
How CDX handles regulations • CDX addresses regulations concerning substances in materials and articles o References either individual substances or substance groups • Regulations are either o Global and maintained by DXC staff, or o Company-specific and maintained by a company administrator • Regulations change periodically o CDX maintains one current version, an unlimited number of historical versions, and an optional future version • CDX reflects regulatory frameworks, such as REACh, RoHS, CalProp65 by providing o Substance flags, such as D (Declarable), P (Prohibited), or E (Exempted) o Threshold / limit values for substances / substance groups o Due dates, or sunset dates o Exemptions, authorizations, or applications o QueryLists according to IPC 175x, as well as UseDescriptors © 2020 DXC Technology Company. All rights reserved. May 26, 2021 44
https://public.cdxsystem.com/en/web/cdx Next steps: • Try out CDX • Login – use the blue button - • Create an account – it’s free • Register your company and create a Material Data Sheet – it’s free © 2020 DXC Technology Company. All rights reserved. May 26, 2021 45
Registering your company in CDX © 2020 DXC Technology Company. All rights reserved. May 26, 2021 46
Bill of Assembly – various levels © 2020 DXC Technology Company. All rights reserved. May 26, 2021 47
Tree structure and menu items in CDX Component: Is used in assemblies in whole number quantities. For example: a resistor, an engine, a screw, a light bulb. A component has fixed weight and is used in its entirity Material: Represents a homogeneous structure. For example: steel, polymer, wire Basic Substance: Opens the basic substance request screen to submit a request to add an as yet not existing basic substance. © 2020 DXC Technology Company. All rights reserved. May 26, 2021 48
Building a Bill of Assembly at component levels © 2020 DXC Technology Company. All rights reserved. May 26, 2021 49
Bill of Assembly – materials, substances, and regulations Regulations and Directives © 2020 DXC Technology Company. All rights reserved. May 26, 2021 50
Sample list of regulations and directives in CDX In CDX, Clients can set up: ✓ Common Regulations ✓ Company Specific Regulations ✓ Global Basic Structure Lists ✓ Company Specific Basic Substance Lists © 2020 DXC Technology Company. All rights reserved. May 26, 2021 51
REACH candidate list in CDX One Bill of Assembly (also commonly known as BoM) may have many regulations. Selecting REACH candidate list identifies them in red. © 2020 DXC Technology Company. All rights reserved. May 26, 2021 52
RoHS list in CDX One BoM may have many regulations. Selecting RoHS list identifies them in red. © 2020 DXC Technology Company. All rights reserved. May 26, 2021 53
Conflict minerals declaration via CDX CDX supports all versions of CMRTs o CMRT: Conflict Minerals Reporting Template o CMRT are from RMI (Responsible Minerals Initiative) http://www.responsiblemineralsinitiative.org/ © 2020 DXC Technology Company. All rights reserved. May 26, 2021 54
Conflict minerals declaration – smelters list in CDX © 2020 DXC Technology Company. All rights reserved. May 26, 2021 55
And the cost? Based on delivering the highest value at the lowest price • Comprehensive product ➢ Simple pricing structure based on company size and composition information with 136 basic substance groups in the their compliance program: system o Entry level companies • Full Material Declaration with o Small companies Material Data Sheet and Conflict o Medium companies Minerals Declaration o Large companies • Data Security at no additional cost • Multiple regulations and directive at no additional cost ➢ License provides management of multiple regulations No additional cost if new regulations need to be added https://public.cdxsystem.com/en/web/cdx/material-reporting © 2020 DXC Technology Company. All rights reserved. May 26, 2021 56
Credit card payments now accepted DXC Technology supports credit card ordering for CDX MDS and CDX CMD Licenses. © 2020 DXC Technology Company. All rights reserved. May 26, 2021 57
How do I learn more about CDX https://public.cdxsystem.com/en/web/cdx/supportive-material © 2020 DXC Technology Company. All rights reserved. May 26, 2021 58
Thank You cdx-info@DXC.com © 2020 DXC Technology Company. All rights reserved.
CDX – Backed by the Strength of DXC Technology Customer Citizen Employee IT-enabled Acquisitions, experience engagement empowerment transformation divestitures From the leading pure-play supplier in cloud services, material compliance solutions, and secure supply chain submissions for almost 20 years © 2020 DXC Technology Company. All rights reserved. May 26, 2021 60
About DXC Technology DXC Technology (NYSE: DXC) helps global companies run their mission critical systems and operations while modernizing IT, optimizing data architectures, and ensuring security and scalability across public, private and hybrid clouds. With decades of driving innovation, the world’s largest companies trust DXC to deploy our enterprise technology stack to deliver new levels of performance, competitiveness and customer experiences. Learn more about the DXC story and our focus on people, customers and operational execution at www.dxc.technology. © 2020 DXC Technology Company. All rights reserved. May 26, 2021 61
DXC – World Leader in IT Business ~$20B 200+ partner network with ~6,000 global IT services leader best-of-breed partners customers 200+ Fortune 500 companies 60+ years of innovation ~138,000 #122 employees worldwide in the 2019 Fortune 500 delivering mission-critical systems for customers 100 earned top score: 2019 70+ 10,000+ countries Agile/DevOps Disability Equality Index professionals © 2020 DXC Technology Company. All rights reserved. May 26, 2021 62
Customers and industries we serve Insurance Healthcare & Travel, Banking & Aerospace & Life Sciences Transportation Capital Markets Defense & Hospitality 6,000+ Consumer & Retail Energy, Utilities, Oil & Gas Manufacturing & Automotive Public Sector Technology, Media & Telecommunications Customers around the world across a variety of industries © 2020 DXC Technology Company. All rights reserved. May 26, 2021 63
References Sony Case: lewis, S., liroff, S., Byrne, M., Booth, S. and Baue B. (2008). Toxic Stock Syndrome: how Corporate financial reports fail to Apprise Investors of the risks of Product recalls and Toxic liabilities. Investor Environmental Health Network. retrieved from http://iehn.org/ publications.reports.toxicstock.php. Walmart case: Siros, S.M. (2013). Wal-Mart Pleads guilty and Agrees to Pay $82M fine for Improper disposal of hazardous Substances. Jenner and Block: Corporate Environmental Blog. retrieved from http://environblog.jenner. com/corporate environmental_l/2013/05/ wal-mart-pleads-guilty-and-agrees-topay-82m-fine-for-improper-disposal-ofhazardous-substances.html. Mattel, Inc case: PricewaterhouseCoopers, ecoVadis, & InSeAd. (2010). Value of Sustainable Procurement Practices: A quantitative analysis of value drivers associated with Sustainable Procurement Practices. retrieved from http://www.ecovadis.com/ website/l-en/webinars-whitepapers. EcoVadis-13.aspx. Other Retail Stores: Berlin, S. & Sieg, r. (2013). united States: ePA Is hitting retail Stores for hazardous Waste Violations. Kilpatrick Townsend & Stockton LLP. retrieved from http://www.kilpatricktownsend.com/en/ Knowledge_Center/Alerts_and_Podcasts/ Legal_Alerts/2013/06/EPA_is_Hitting_ Retail_Stores_for_Hazardous_Waste_ Violations.aspx. Hyundai Case: WASHINGTON (September 19, 2019): Under a settlement with the U.S. Environmental Protection Agency (EPA) and U.S. Department of Justice, Hyundai Construction Equipment Americas Inc.(HCEA) and Hyundai Heavy Industries Co. Ltd (HHI) (collectively known as “Hyundai”) has agreed to pay a penalty. The settlement resolves allegations that Hyundai sold heavy construction vehicles with diesel engines that did not meet Clean Air Act emission standards. Reference: EPA Press Office (press@epa.gov) Organophosphate Ester Flame Retardants: Are They a Regrettable Substitution for Polybrominated Diphenyl Ethers?, Arlene Blum, Mamta Behl, Linda S. Birnbaum, Miriam L. Diamond, Allison Phillips, Veena Singla, Nisha S. Sipes, Heather M. Stapleton, Marta Venier, Environ. Sci. Technol. Lett. 2019. https://doi.org/10.1021/acs.estlett.9b00582 © 2020 DXC Technology Company. All rights reserved. May 26, 2021 64
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