Environmental

As a good corporate citizen, we must limit the impact our efforts have on the environment and natural resources. The major components of environmental CSR are elimination of waste and emissions, maximizing energy efficiency and productivity and minimizing practices that can adversely affect utilization of natural resources by coming generations.

About Sustainability

As we follow our vision to enable a fully connected world, we embrace sustainability. As more people are connected, work and life can be accomplished using fewer resources.

On the journey to our vision, we must continue to be a responsible corporate citizen of the world.

We will accomplish this in the typical Adtran entrepreneurial, reliable and ethical way by:

Using our Environmental Management System (EMS) as a tool to support our initiatives as we explore and understand environmental issues and adapt our processes
Developing and delivering products that meet our customer requirements, while incorporating material and energy conservation initiatives
Striving to communicate and incorporate sustainability initiatives throughout the supply chain
Continually reviewing our operations to increase efficiencies through our Continuous Improvement teams. Improving and protecting our environment while conserving natural resources using our unique Adtran culture
Educating, developing and empowering our employees, and thus enabling them to identify and adopt best practices that will enhance sustainability
Maintaining our financial responsibility to our shareholders and employees while supporting our sustainability initiatives

Operations
Our Operations Group is serious about sustainability. Waste management, water/energy conservation, and emission control/carbon footprint reduction are the initial focal points of initiatives designed to foster a green supply chain. Efforts to redesign our logistics system continues as localization of material supply, direct shipment of customer orders, and optimizing transport modes are combined to dramatically reduce carbon emissions. Manufacturing processes and scheduling improvements are being reviewed as we work to drive efficiencies and optimize asset utilization to conserve energy. These enhancements combined with the expansion of paperless process initiatives, across all departments, and comprehensive recycling efforts are keys to waste management. We strive to reduce tonnage to landfill and increase material reuse/recycling. Our efforts extend beyond internal departments as we launch supplier surveys to better understand our carbon footprint, monitor initiatives of our key supply chain partners, and establish comprehensive supplier standards.

Facilities

Energy consumption reductions via air conditioning, heating, and lighting improvements
Recycling program for corrugated cardboard and white paper
Recycling program for batteries, colored papper, ink cartridges, metal, and plastic
Clean air quality and emissions via filtering systems

Continuous Improvement Teams
We have implemented continuous improvement teams to study our internal processes to reduce waste, improve product quality and cost. By empowering these teams it allows for faster response times and a timely release for innovative products and services. From Environmental initiatives to supply chain management to design reviews, we are always looking for improvements that will focus on our 4 R's - Reduce, Reuse, Recycle and Rethink

Reduce - Use less and save resources that cannot be totally eliminated
Reuse - Extend the usable life of natural, company resources by using the material in other applications
Recycle - Transform the material into another useful form after their initial application life and reducing landfill space for waste
Rethink - Reconsider a better way of doing things. Consider options to reduce resource and energy use as well as costs

The Five Core Dimensions of Sustainability
We are committed to continuous improvement of our business operations through measurable environmentally and socially sensitive performance for the benefit of our customers, suppliers, shareholders, employees and society at large.

About Our Green Team

End-of-Life Recycling

Carbon Disclosure Project (CDP)

Commitment to the Environment

As a good steward of the environment, Adtran actively promotes eco-friendly manufacturing processes, energy efficiency, and conservation. Our commitment is not only to global regulations and policies but is part of a green philosophy extended into our local community, as well as, our corporate, campus-wide environment.

Environmental Accomplishments
Among our many accomplishments, Adtran has developed manufacturing processes which allow us to control the amount of air emissions and hazardous waste produced. We also have a safety and health program which includes hazardous communication and environmental awareness training for all of our employees. Additionally, Adtran is in compliance with all federal, state, and local regulations regarding air emissions and hazardous waste. Additional achievements include:

Air Emissions
Adtran has effectively eliminated air emission concerns associated with its manufacturing processes by utilizing water-based, non-hazardous flux on all manufacturing lines. For the greatest air-filtering efficiency, we currently utilize Impel filtering system hoods to exhaust our manufacturing equipment.

Green Energy
Across our campus, we have implemented practices that better utilize and conserve energy. For example, we phased out non-green fluorescent light bulbs via our bulb-replacement maintenance program and are now using energy-saving compact fluorescent bulbs, where feasible. We have also reduced energy consumption through our best facility maintenance practices, which include implementing after-hours equipment operational set-backs, and installation of energy-saving equipment, such as variable-speed drive motors.

Hazardous Waste
Adtran is listed as a small-quantity generator of hazardous wastes. To ensure greatest safety and compliance, all hazardous waste is hauled and disposed of by a licensed hazardous waste transporter.

Landfill Waste Reduction
A campus-wide recycling program has been established for corrugated cardboard, wood pallets, and batteries.

Packaging/Shipping
Adtran uses recycled packaging materials whenever possible and all packaging materials can now be recycled.

Water Discharge
Adtran submits annual reports to governing authorities outlining compliance with water discharge regulations. Our local government inspects annually to ensure total compliance.

Energy

Environmental Product Compliance

We are committed to upholding and promoting policies which protect the environment. Our dedication to environmental compliance includes engaging in internal, corporate-wide initiatives, as well as adhering to and championing global standards established for the OEM community.

Eco-Sustainability
Achieving eco-sustainability is dependent upon our ability to meet current needs, without hindering the ability to meet the needs of future generations in terms of economic, environmental, and social challenges. At Adtran, we believe that it is not only possible to do this but that it is necessary. As an innovator of networking products, we understand it is our responsibility to provide businesses with solutions that not only support eco-sustainability efforts but do so in an affordable, responsible, and ethical manner. Part of our product sustainability initiatives involve efforts to improve product design, product packaging, materials design, and comply with energy ratings for reduced carbon emissions and increased material and energy conservation.

The resulting "green" or eco-sustainable technologies can then be used to help other businesses:

Reduce their carbon footprints
Lower their power consumption
Minimize their impact on the environment

Product Compliance
We provide products that conform to environmental directives across the globe. RoHS or the Restriction of Hazardous Substances is an initiative to reduce the use of Lead (Pb) and other substances commonly used in electronics industry. We have been providing RoHS compliant products since its inception in 2006. We also adhere to other sustainability initiatives including WEEE, REACH and Conflict Minerals.

Country Initiatives/Directives
China China RoHS	Europe RoHS 2 WEEE REACH	US Dodd-Frank Act

Banned and Monitored Substances
We recognize the need to identify and control the chemicals (substances) used in our products and/or packaging. Due to the large number of substances being monitored and growing every year, our Black and Grey substance list will be continuously updated as new substances are identified. This Black and Grey list specifies substances which Adtran has banned, restricted or targeted for reduction.

These restrictions cover both known regulatory and specific Adtran requirements. We apply these mandatory requirements worldwide.

Scope of the Black and Grey Lists:

Products (Including components, parts, subassemblies and accessories): Substances present in the product
Packaging (Transport): Substances present in packaging materials

The sections of the lists are defined as follows:

Restriction in force: This identifies substances that are banned or restricted in applications (components, materials (solders, pastes, etc.), parts, subassemblies and accessories) related to Adtran products and/or packaging

Monitored substances: This identifies substances which we expect, based on reasonable facts, to be reduced and phased out from our products and/or packaging, subject to the availability of technically, environmentally, and economically sound alternatives. Suppliers are strongly advised to investigate suitable alternative solutions.

Supplier Responsibilities
We exercise due diligence before any supplier's component are selected for our products. Any component that doesn't meet the Black and Grey list or any other global environmental initiatives are excluded from AAdtran's Environmental friendly products.

Suppliers must submit these documents for them to meet our Environmental compliance:

RoHS Documentation – Statement of Compliance (SoC) - Blanket or Component Specific
Letter of Conformance to our Black and Grey List
Must have an EICC on File that shows compliance to Conflict Minerals

Product Based Environmental Management System Contact:
Vernon Saunders, Component Engineer, Product Environmental Compliance, 256-963-8119

Freshwater

Landfill Diversion

Natural Resources

Renewable Energy

Safeguarding Labour Rights

Technology Award

Waste

Water

Social

We believe that our most valuable asset is our people. To ensure our company continues to succeed, our objective is to be able to recruit, hire and retain top talent. Our ability to attract and retain a high-quality workforce is dependent on our ability to maintain a diverse, equitable and inclusive workplace that provides opportunities for our employees to learn and grow in their careers. This is supported by strong compensation, benefits, community service, and other programs that enable employees to build connections within the community.

Governance

CSR is quickly becoming a part of Corporate Governance practices. Both Corporate Governance and CSR focus on the ethical practices in the business and the responsiveness of an organization to its stakeholders and the environment in which it operates and directly affect the performance of an organization.

Environmental, Social, & Governance

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