© 2006

1 Global Risk

ENVIRONMENTAL RISKS &

COMPLIANCEGlobal Economic Outlook Seminar

May 2, 2006

Arthur N. Mabbett

The Mabbett Group Mabbett & Associates, Inc. Mabbett & Associates Ltd.

© 2006

2 Global Risk

Evaluating Risk

Environmental, Health & Safety Considerations– Strategic Focus– Contaminated Land– Facilities-Regulated Building

Materials – Operational Issues

Applicable Local Regulations– Current & Future– Environmental – Health & Safety – Product-Related

© 2006

3 Global Risk

Evaluating Risk

Current Compliance Status– Permitting– Facilities-Land Related– Processes & Products– Current & Future

Health Considerations– Travel & Workforce Impacts

Global Warming

© 2006

4 Global Risk

Environmental Assessment

Due Diligence Process - Structured - Project Focused - Multi-Media Approach - Liability Cost Estimates - Cost

Avoidance/Containment – Management, Legal

and Insurance Options

© 2006

5 Global Risk

Contaminated Land– Past Historical Use– Future Clean-up Costs – Future Use Restrictions

Facilities- Building Materials– Asbestos, Lead, PCBs – Utilities – Security

Environmental Assessment

© 2006

6 Global Risk

Compliance Status

Processes & Products– Are Manufacturing

Processes Sustainable?– Are Products Sustainable?

Current Status– Operating Legally? – Pending Investigations?

Future Costs – Achieving Compliance– Maintaining Compliance

© 2006

7 Global Risk

European Union

WEEE/RoHS– End of Life Collection for Electronic Equipment– Use of Lead, Mercury, Cadmium, etc.

EuP– Eco-Design for Energy Using Products

IPPC– Broad Permitting Requirements

REACH – Chemical Testing and Manufacturing

Requirements

© 2006

8 Global Risk

China

RoHS Legislation– Details Pending

Licenses for Certain Chemical Use

Personal Liability Under H&S Laws – Civil & Criminal Penalties

Foreign Investment-Higher Standards

© 2006

9 Global Risk

Brazil

RoHS-Like Restrictions End-of-Life

Responsibilities– Life Cycle Approach

Focus on Disposal, Reuse & Recycling

Alternatives

© 2006

10 Global Risk

Health Considerations

SARS/Avian Flu Travel Considerations

– Restrictions Business and

Workforce Impacts– Emergency Response

& Contingency Planning

– Internal and External Considerations