DATA IS POTENTIAL

Measuring Seagate’s Chemical Footprint

Joanne Larson

Staff Program/Project Manager

Product Sustainability

5 December 2017

212/15/2017

MAXIMIZING DATA’S POTENTIAL

Measuring Seagate’s Chemical Footprint

Joanne Larson

Staff Program/Project Manager, Product Sustainability and Compliance

Seagate Technology

5 December 2017

33

Seagate is a Digital Storage

Company

4

Operational Excellence

Global Operations and Technology

Source Make Deliver ServicePlanDesign

5

Seagate Global Presence

Waterloo, Canada

Beaverton, OR, USA

Fremont, CA, USA

Cupertino, CA, USA

Valencia, CA, USA

Longmont, CO, USA

Colorado Springs, CO, USA

Oklahoma City, OK, USA

Shakopee, MN, USA

Bloomington, MN, USA

Rochester, MN, USA

Houston, TX, USA

Round Rock, TX, USA

Guadalajara, Mexico

São Paulo, Brazil

Danderyd, Sweden

Dublin, Ireland

Springtown, N. Ireland

Paris, France

Havant, UK

Maidenhead, UK

Munich, Germany

Amsterdam, Netherlands

Moscow, Russia

Korat, Thailand

Teparuk, Thailand

Johor, Malaysia

Penang, Malaysia

Shugart, Singapore

Woodlands, Singapore

Sydney, Australia

New Delhi, India

Pune, India

Bangalore, India

Beijing, China

Tokyo, Japan

Taipei, Taiwan

Hong Kong, China

Wuxi, China

Shenzen, China

Chengdu, China

Shanghai, China

Tianjin, China

Legend: HQs, Admin/Sales Design Manufacturing Customer Support

6

Operational Resilience in all Foreseeable Circumstances

Seagate Business Continuity Planning

RESILIENCE &

CONTINGENCY

PLANNING

Enterprise Risk Planning

• Business Impact Analysis

• Risk Elimination/Mitigation

• Response & Recovery Plans

Supplier Risk Planning• Geo-Location Diversity

• Risk Mitigation Measures

• Response & Recovery Plans

Global Monitoring

• Threat Surveillance

• Action Triggers

• Stakeholder Communication

7

Seagate Sustainability

103

8 8

9

Sustainability:

Meeting the needs of the present

without compromising the ability of

future generations to meet their own

needs.

United Nations Sustainability Defintion

Sustainability at Seagate Encompasses Three Aspects

Comprehensive Sustainability

PLANETBe exemplary stewards

of our natural resources

PEOPLECare for and support

our employees and

communities

PROFITDeliver customer

satisfaction and strong

financial results

10Seagate Internal EHS and Sustainability

Analyze, report, and reduce impacts across Seagate’s operations and product portfolio

Seagate’s Sustainability Priorities

PRODUCT AND

OPERATIONAL

SUSTAINABILITY

Continuous Streams of

Data that are Always On

COMPLIANCE

Evaluate and ensure

compliance with the EICC’s

Code of Conduct, with

committed non-regulatory

standards, and all

regulations of geographies

in which Seagate does

business

EMPLOYEE

ENGAGEMENT

Create an environment

encouraging and

supporting employees’

participation in

sustainability endeavors

11

Expertise, Authenticity, Humility and Transparency Assures our Credibility and our Message

Seagate Sustainability Highlights

Electronic Industry Citizenship Coalition

Commitment to the EICC Code of Conduct and the standards on

social, environmental and ethical issues in the electronics industry.

United Nations Global Compact

Commitment to the UNGC and the ten universally

accepted principles on human rights, labor,

environment and anti-corruption.

Bill of Substances

Publishing select bills of substances offers product

material content transparency while protecting

suppliers’ confidentiality.

Full Materials Disclosure (FMD)

With over a decade’s experience with product FMD, Seagate is

designing and implementing its second generation FMD, and

introducing its automated Conflict Minerals and Process

Chemistry management tools.

Life Cycle Analysis (LCA)

Seagate publicly posts product and packaging LCA results,

and actively engages in customer and stakeholder

discussions sharing results and the data.

Supply Chain

Seagate actively engages with our Supply Chain

partners in driving sustainable business practices

throughout the supply chain.

Global Citizenship Annual Report

Annual publically available report on governance and ethics,

product and environmental sustainability, employees, supply

chain and community engagement.

Regulatory Compliance

Seagate management systems and programs support

compliance to local regulatory requirements.

12Gartner, SCM World, Supply Chain Insights

Leading the Industry

Seagate Supply Chain Awards and Recognition

Ranked by Gartner for

Supply Chain ExcellenceRanked by Supply Chain

Management World

Ranked by Supply

Chain Insights

#16of all Supply Chains(2015)

#20of all Supply Chains(2014)

#7of High Tech Industry(2014)

#4in EMEA(2014)

First and only HDD Supply Chain to be

recognized by Gartner

#5 of 77Breakthrough Supply Chains(2014)

Top 4Industrial Supply Chains to Admire(2014)

Seagate Supply Chain has been benchmarked BY MORE THAN 20 FORTUNE

500 COMPANIES. Companies use our processes as a standard of reference

13Investor Day 2012, BizNGO Guide to Safer Chemicals, Seagate Press Release

Leading the Industry

Sustainability Awards and Recognition

HPE 2016 Corporate

Responsibility

Achievement Award

Acer 2015 CSR

Partnership Award

Huawei 2014 Green

Partner CertificationHighlighted in BizNGO’s

Guide to Safer Chemicals for

Full Materials Disclosure

Seagate Sustainability and associated processes has been highlighted by CUSTOMERS,

NON-GOVERNMENTAL ORGANIZATIONS (NGOs), and REGULATORS

1414

Seagate’s Compliance

Assurance System

15

Compliance Assurance System (CAS) History

Full Material Disclosure

Process Chemistry

► CAS: Full Materials Disclosure (FMD)

► 10,000 requests per year

► Conflict Minerals (3TG) on different system

► CAS2 launched February 14

► Integrates all areas into one toolConflict Minerals

(Responsible Sourcing)

PLANET

PEOPLE PROFIT

16

Introducing CAS2… An Industry First

► All follow common workflow

► Automates entire process

► 15,000+ active Seagate parts

► 30K supplier parts

► Rigorous assessment of data

► Process chemistry industry first

Full Material Disclosure

Process Chemistry

Conflict Minerals

(Responsible Sourcing)

PLANET

PEOPLE PROFIT

17

Solving Tough Challenges

Suppliers

CAS2

Customers

Seagate

CAS2

Officer

Seascape

Product

Data Hub

Product Bill

of Materials

FMD, Conflict Minerals

Reporting Template,

process chemistry

Manage

compliance

statusCompliance

Reports

Parts and

supplier list

18 18

FMD – IPC1752A format

18

19Seagate Confidential

Conflict Minerals Reporting Template (CMRT)

Seagate Global Supplier Product Stewardship Training 2017/2018

20

Process Chemistry Template

21

CALCULATING SEAGATE’S

CHEMICAL FOOTPRINT

22

Our FMD system makes this a possible

The CoHC Count Method

Full Materials Disclosure (FMD)

With over a decade’s experience with product FMD, Seagate is designing and

implementing its second generation FMD, and introducing its automated Conflict

Minerals and Process Chemistry management tools.

• Evaluate CoHCs against FMD database

• How did Bill do this? How will Joanne do this?

• Count the number of unique CASRN to arrive at Seagate’s Chemical Footprint

• Mass-based calculation: pilot with one representative product

23

Mapping our product sales to CoHC supplier disclosures

The Total Mass Method

Approach:

Map product ST Models from our FMD system to substances, multiply substance mass in each

PN by total number of each ST Model number shipped.

Current Challenges:

Hundreds of product ST Model numbers present mapping challenges between product lines and

CoHCs. Next year we will perform the Total Mass Method on a single product/product line/line of

business.

24

The Power of Seagate’s Compliance Assurance System, ‘CAS2’Segment of ‘Item Report’ generated for FMD:

25

‘Item Report’ as basis for Mass calculations

See next slide

26

FMD ‘item report’ specificity of data, basis for mass-based CFP reporting

2727

Business Value of CFP

28

Building Industry Focus on Responsible Chemical Management

CFP Business Value to Seagate

• Market and regulatory requirements drive Seagate’s priorities

• Investor focus underpins internal chemical management initiatives

• Objective measurement allows tracking and improvement

• Provides a communication tool to our stakeholders

• Fosters support for materiality priorities:

• Chemical Management

• Supply Chain Management

• Occupational Health and Safety

• Emissions, Effluents, and Waste

• Responsible Sourcing

• Conflict Minerals

• Transparency and Reporting

29Seagate internal legal, Seagate internal firmware, Seagate internal R&D

Leadership Through the Design of World Class Technologies

Operational Excellence - Design Overview

Vertical integration of design strategy favors

technology advancements, data

management and application tuning.

Design Plan Source Make Deliver Service

COMPONENTS

Technology leaders in

demonstrating

SMR, HAMR and

MSMR

9000+ patent portfolio

illustrates technology

leadership in

Intellectual Property

Utilize 51 of the

elements in the periodic

table

Controller firmware

codebase has

over 7.6 million

lines of code

30

Design Plan Source Make Deliver Service

Seagate Internal SI-OP

Sales, Inventory, and Operations Planning (SI-OP)

Operational Excellence — Plan Overview

COMPONENTS

Fundamental to

predictable financials

Improved confidence

for meeting

customer demand

Decision transparency

and ownership

Streamline and reduce

number

of meetings

Supply Planning

Demand/ Supply Review

SI&OP

Forecast

Demand Planning

Opportunities Report

Consumption Report

31Seagate internal Supply Chain and Logistics

A Supply Chain that Balances Suppliers, Logistics, Risk, Cost and Quality

Operational Excellence — Source Overview

Integrated Supply Chain Enables Efficient,

Sustainable Operation Across Device and

System

Design Plan Source Make Deliver Service

COMPONENTS

Own and operate

10 manufacturing sites

in 7 countries on 3

continents

Enabled by

best-in-class

procure to

pay model

Rely on over 8000

supply partnerships

Integrate over 45 billion

parts per year

32Seagate internal systems and HDD Operations

Make Best Quality Storage Products for the Human Experience

Operational Excellence — Make Overview

Be The Best HDD and Systems

Manufacturer Rated by Customers for our

product quality, technical excellence and

innovative solutions.

Design Plan Source Make Deliver Service

COMPONENTS

First to build and

ship a collective

zettabyte to

the world

Manufacturing

processes span semi-

conductor, nano

manufacturing and

robotics

Automation and

Intelligent Analytics

capabilities to make the

industry’s best quality

products

Best-in-class

manufacturing to make

and ship over 65

exabytes

every quarter

33Seagate internal Supply Chain and Logistics

Improving How We Serve Our Customers with Delivery

Operational Excellence — Deliver Overview

Seagate Aims for Perfect Order Delivery

• Ensure perfect order delivery to customers against their

demand each and every time

• In full, on time, in perfect condition and accurate

Design Plan Source Make Deliver Service

COMPONENTS

1400 active freight

lanes using ocean, air,

rail and truck

More than 210,000

Kg/day shipped

24x7 monitoring,

support and scheduling

of customer orders

Greater than 98%

on time delivery

34Seagate internal Customer Service, Seagate internal Rescue and Recovery Services

Seagate Services Focuses on Customer Success

Operational Excellence - Service Overview

Design Plan Source Make Deliver Service

OPERATIONAL

EFFICIENCY

REDEFINE HOW DATA

RECOVERY IS OFFERED

LEVERAGE SEAGATE’S

STORAGE EXPERTISE

Highest priority is integration quality and field reliability is

excellence with our OEMs, Partners

10 worldwide recovery services locations

provide > 80% recovery rate

More than 3,000 daily customer service contacts

through phone, email

35 35

Seagate's Materiality Assessment

36 36

37 37

38

Thank You