Environment

TE has an Environment, Health and Safety (EHS) policy describing our commitment to compliance with all applicable laws and protection of the environment. Specifically, the policy notes our commitment to:

• Operating our facilities around the world in a manner that protects our employees, public health and the environment.
• Complying with all applicable laws and regulations at every location where we operate and applying our own more stringent standards and policies wherever necessary to protect our employees and the environment.
• Seeking to continuously improve our environmental and safety performance.
• Designing our products and processes in a manner that minimizes risks from the manufacture, use and disposal of our products.
• Reducing or eliminating the presence of lead and other hazardous materials from our products in accordance with legal requirements and customer demands.
• Conserving energy, water and raw materials and reducing waste and emissions.
• Being a good neighbor in the communities where we operate.

We will meet these commitments in three key ways.

• First, we regularly measure and report on various key performance indicators at plant, business unit and corporate level, and hold plant operations and business leaders accountable for EHS performance.
• Second, we engage external experts to conduct audits of our locations to review our compliance with all applicable legal and regulatory requirements and with TE’s own standards.
• Third, we provide training and tools on a wide variety of environmental topics to managers, line employees, and others as required to meet regulatory requirements and improve our performance overall.

EMS Certification

More than 60 of TE’s sites have their environmental management systems (EMS) certified to ISO 14001 by third-parties. To achieve certification, a facility must demonstrate that it has an EMS in place that identifies significant environmental impacts, sets goals and targets, and has a robust system for evaluating performance, taking corrective actions where needed, checking status on an ongoing basis, and continually improving performance.

EHS Staff

TE has a corporate staff dedicated to addressing EHS issues and also has EHS leaders in our business units and EHS staff at manufacturing plants and other locations. Our EHS team works closely with operations leaders on an ongoing basis. They also provide resources to all sites in the form of program guidance and templates, internal and external expertise, web-based resources, best practices, legal and regulatory guidance, and other information.

Open Communication

TE encourages regular open communication regarding environmental, health and safety matters. Employees or stakeholders who are unable to resolve a concern locally or who wish to remain anonymous can notify the Ombudsman anonymously by telephone, via the toll-free global ConcernLINE or via the TE ConcernNet website.

To reduce our greenhouse gas (GHG) emissions, we continue to explore ways to reduce electricity and fuel usage. TE uses about 1.6 billion KwH of energy annually to power nearly 165 manufacturing plants, warehouses, offices, laboratories, ships and other vehicles around the world. Most of the energy is used for lighting, cooling, heating, powering and running equipment and ships.

	FY'09	FY'10
Energy Consumption (Mwh) includes electricity, heat, steam & cooling

Energy Use

We conduct audits of energy usage at our sites to help us identify and effectively implement changes, which yield electricity and fuel savings.  For example, at many of our locations worldwide we have upgraded to more efficient lighting systems and installed motion detectors to reduce energy usage. We expect that continued attention to our audit findings will yield continuous improvement in the future.

We are pursuing energy efficiency as part of our company-wide 10% improvement effort. To accomplish this, we have teams addressing common processes—like molding, stamping and plating—seeking ways to reduce energy usage associated with those processes and to spread best practices globally. Many of our sites have energy teams with representatives from various functions working together to identify savings opportunities. Our plants have found ways to improve cooling and heating processes—capturing heat given off by other processes, using outside air, and using groundwater—and we recognize and promote these efforts throughout the company.

As our efforts expand, we expect to increase our energy efficiency and decrease GHG emissions significantly. In fact, from 2009 to 2010 alone, we achieved an 8 percent reduction in GHG emissions, even though our sales volume increased significantly as the economy rebounded.

Carbon Disclosure Project

We also are reporting to the Carbon Disclosure Project (CDP) on our greenhouse gas (GHG) emissions. The CDP is the most-widely used and recognized global database of corporate GHG emissions data.

Environmental Responsibility by the Numbers

We recycled nearly 75 percent of the 75,000 metric tons of the byproduct materials generated in fiscal year 2010. In FY2010, TE recycled or reused 56,065 metric tons of material, produced 17,436 metric tons of total waste, and generated 6,456 metric tons of hazardous (as defined by applicable law).

Our long term goal is zero waste, and we are constantly seeking to re-engineer our products and production processes to become waste-free. We recycled or reused more than 80 million pounds (36.4 million kg) of metal scrap and plastic resin from our manufacturing operations. Better electroplating processes allow us to recover 80 to 95 percent of the chemicals previously discharged or disposed.

FY'09 FY'10 Hazardous Waste (metric tons)	FY'09 FY'10 Total Waste Generated (metric tons)

Product Recycling

Because almost all our products are composed of metal and plastic, we strive to recycle as much of this material as we can. In 2008, we were able to recycle 28 million pounds of metal and 8 million pounds of plastic in North America alone. We also recycle a significant portion of our packaging material. Also in 2008, we recycled 3.7 million pounds of corrugated cardboard, and 80,000 pounds of stretch film in our North Carolina and South Carolina locations.

Recycling/Reuse Efforts

• In Shizuoka, Japan, TE employees segregate 90 kinds of metal stamping scrap and sell gold-plate, tin-plate, and bare metal to suppliers and scrap handlers. Last year they sold more than 60,000,000 pounds of scrap with a value of $18 million.
• At our automotive facility in Greensboro, North Carolina, which recycles more than 2 million pounds of metal annually, engineers developed a highly efficient method for separating scrap materials that enhanced the resource value of recoverable material, generated a better financial return, and reduced the cost of the recycling program overall.
• At our automotive facility in Woert, Germany, the plant is separating metals using steel boxes that travel between the operation and suppliers, eliminating the use of cardboard boxes completely. This long-running practice is now being used by other TE plants in Germany, Switzerland and the Czech Republic.

	FY'09	FY'10
Materials Recycled/Reused (metric tons)

Reduction in Packaging

Another aspect of our commitment to reducing waste is a global effort to reduce packaging. Each year millions of TE connectors produced at our automotive facility in Shizouka, Japan, are shipped in plastic tubes and trays to customers. Until recently, this packaging was thrown away.

Now the plant participates in a recycling program with the packaging manufacturer, which regularly reclaims 4.6 million tubes and trays from our customers and inspects and cleans them for reuse. Even damaged packaging can be submitted for recycling. The program not only dramatically reduces waste, but cuts packaging costs by 50 to 60 percent.

	FY'09	FY'10
Water Usage (millions of gallons)

TE's global operations used approximately 1.3 billion gallons of water and discharged 945 million gallons of wastewater in fiscal 2010, mostly generated from manufacturing and sanitary sources. Our plants worldwide are actively seeking - and finding - ways to reduce the amount of water used in, as well as the amount of wastewater discharged from, our facilities. We have adopted methods that have completely eliminated or greatly reduced wastewater discharges from electroplating processes, which is one of our most significant discharge sources. We expect to continually reduce our water use and discharges through conservation efforts and improved water reuse technologies.

Wastewater Reduction

Several TE plants around the world have adopted methods that have completely eliminated or greatly reduced wastewater discharge from electroplating processes. For instance, our plants in Lickdale, Penn.; Greensboro, N.C.; Rock Hill, S.C.; Pusan, Korea; and Juarez, Mexico; all have systems with zero discharge of process wastewater. These systems are also able to recover 80 to 95 percent of the chemicals that previously would have been discharged or disposed of as waste.

Environmental Responsibility by the Numbers

Significant Accomplishments

• Our plants in Qingdao, China; Dinklesbuhl, Germany; and Rapho Park and Landisville, Penn.; have reduced process water use by at least 50 percent and have recovery equipment to recycle between 35 and 85 percent of the chemicals they use in manufacturing.
• At our Aerospace, Defense & Marine plant in Tijuana, Mexico, employees developed an innovative water recirculation process that filters water used in specific processes, thereby reducing water consumption by 65 percent, or six million gallons, annually. Along with adding timing devices to better control water flow, the plant managed to reduce water consumption for this process by 85 percent in FY2010.
• In Bangalore, India, employees installed a secondary water filtration system to further treat wastewater, making it suitable for toilet flushing, gardening and watering plants throughout the campus and along roadways. The improvement reduces TE’s consumption of groundwater in Bangalore by nearly 2 million gallons per year.
• At our Menlo Park, California, site, water consumption was reduced by 65 percent, or more than 16 million gallons annually, through new recirculation practices, the addition of flow restrictors on water lines, and restricted drain openings. Other improvements at this location have included upgrading cooling water towers, planting drought-resistant landscaping, and installing waterless urinal toilets—all of which combined to reduce water usage by another 10 million gallons annually.
• The Global Automotive facility in Woert, Germany, modified the cooling water system for manufacturing processes and building offices to take advantage of lower outside seasonal temperatures, resulting in an annual reduction of 173 metric tons of greenhouse gases.

Government bodies, customers and industry organizations have honored TE in the past year for its work to improve the environment in the places where we live and work.

Recognition in 2010

• In February 2010, the TE facility in Bangalore, India, received the Parisara Mitra Award for their work with wastewater treatment (see above). A month later, another Bangalore facility was awarded second place in the Best Safe Industry competition sponsored by the Government of Karnataka state. The award honored the plant’s overall safety, environment, health, welfare, and corporate social responsibility activities.
• The Shanghai Economic Committee and Shanghai Environmental Bureau presented the TE Communications & Industrial business unit facility in Shanghai, China, with the Cleaner Production Advanced Enterprise Award. The award recognized employee efforts saving 300 tons of water and reducing usage of toxic chemicals.
• The Automotive and Relay Products Group facility in Shenzhen, China, was presented with an award honoring innovative recycling projects by the local Bao’an district government. The facility was one of only three local companies to earn this prestigious award.
• The CIS facility in Shunde, China, received the Hang Seng Pearl River Delta Environmental Award from the Federation of Hong Kong Industries, an award that honored the facility’s commitment to cleaner production. Among the facility’s improvements is the development and installation of a system that recovers heat from air compressors to help supply hot water to the campus, therby reducing fuel consumption and greenhouse gas emissions.

Leading Enterprise

In addition to these individual plant awards, TE China received a Leading Enterprise Golden Bee Corporate Social Responsibility China Award for its sustainable development practices. Organized by the China WTO Tribune (a monthly magazine supervised by the Ministry of Commerce) and the German government-sponsored organization GTZ, the Golden Bee Program recognizes enterprises that not only behave as good corporate citizens, but also spread CSR values throughout their businesses and among their stakeholders. In particular, TE was honored for its corporate governance, innovative technology, employee development, environmental protection, and supply chain efforts in China.

Green Partner

Seventeen different TE plants have been certified as “Green Partner” facilities by Sony Corporation. The certification shows that we successfully meet the program’s standards and expectations. TE’s plants in Japan, Korea, China, Singapore, Poland and the U.S. all received the certification.

Green Supplier of the Year

TE also was named a Yazaki North America “Green Supplier of the Year” in 2009 and 2010 for demonstrating the “highest commitment to the environment.” Among the accomplishments cited with this award were our corporate-wide environment, health and safety management program, active employee involvement, and ongoing efforts to reduce and establish a baseline of significant environmental impacts.

Nearly ten years ago, TE undertook a comprehensive review of the materials that we purchase and the products that we sell to determine the extent to which these materials and products might contain hazardous substances. While initial efforts were largely driven by the European Union End-of-Life Vehicle (ELV) and Restriction on the Use of Hazardous Substances (RoHS) directive, TE chose to assess our entire product portfolio globally, which included more than 2 million raw materials, components, and end products.

Compliance and Global Sales

A result of a comprehensive review and subsequent conversion of products containing hazardous substances, over 85 percent of our global sales are of products compliant with the ELV and ROHS directives. These products contain significantly reduced amounts of lead, cadmium and hexavalent chromium. The remainder of our sales represents products sold to industries, such as military and aerospace, where lead-free products are not currently required or accepted.

Halogen Reduction

We are part of an industry initiative to reduce the use of halogens in our products, and are converting existing products and developing new products that are halogen-free.

Consideration of Environmental Characteristics

To aid engineers in selecting “green” materials for new products, TE developed a Global Material Selector System that identifies the material’s environmental characteristics along with information on how a particular metal or resin performs. Consideration of these environmental characteristics goes beyond current legal requirements and allows us (and our customers, for that matter) to be proactive in reducing the use of hazardous substances.

Design for the Environment

A Design for the Environment training course for engineers emphasizes the variety of ways to develop an environmentally friendly product. The course covers the entire timeline of product development--from choice of raw materials to reduce power consumption by improving conductivity, to designing for end of life.

Product Reclamation

For end products where TE is the producer, such as networking equipment or monitors, we provide customers with information for take back and recycling. Our TouchSystems product, for example, provides for reclamation of its touch screens and LCD touch monitors. The business also provides recycling centers with disassembly instructions for its monitors and computers, and labels its products to indicate that they should be recycled properly.

In fiscal 2009, we undertook a comprehensive measurement of our global environmental footprint. This effort included all manufacturing locations, warehouses, company operated vehicles, our fleet of ships, and significant office locations. In total, more than 160 locations reported data.

Through this process, we collected data on our significant environmental impacts: electricity and fuel usage, greenhouse gas emissions, water usage, wastewater discharge and waste. We now collect this data on a monthly basis, and have established an across-the-board reduction target of 10 percent from the 2010 baselines (relative to production) by 2012.

Carbon Disclosure Project

We also are reporting to the Carbon Disclosure Project (CDP) on our greenhouse gas (GHG) emissions. The CDP is the most-widely used and recognized global database of corporate GHG emissions data.

TE had significantly higher volume production in 2010 compared to 2009. When adjusted for volume, our 2010 performance improved over 2009 on all measures.