Sustainability

Dear Friends & Neighbors,

In 2010, we celebrated the 60th anniversary of our company's founding by Roy Richards, Sr. A man of vision, Mr. Richards spent his life building a thriving community in Carroll County, GA. That spirit remains with us today as we continue on our journey to a sustainable Southwire. In 2007, we charted a roadmap - a set of tough goals - to guide us on that journey. We have made significant progress toward achieving most of these goals and, in some instances, we have exceeded them, including:

- 71% reduction in waste sent to landfills (goal is 100% reduction);

- 36% reduction in water use (goal was 15% reduction);

- 13% reduction in carbon footprint (goal was 10% reduction);

- 178 students graduated from 12 for Life (goal was to graduate 175 by 2012); and

- 99% participation in health screenings.

There are some goals we haven't reached. For example, while we did reduce our carbon footrpint by 13%, we became less efficient during this period, and our carbon intensity actually increased. So, continuing to reduce our carbon footprint while increasing our efficiency remains a significant goal to work toward.

Of course, that is not our only goal. We know there is always room for improvement. While our 2011 Sustainability Update highlights our achievements and shortfalls over the past few years, it also summarizes a new set of goals that will move us further toward achieving a truly sustainable company. Our vision is to not only conduct our activities in a socially responsible manner, but also to search for simple and innovative ways to improve efficiencies and sustainable practices for ourselves and our stakeholders. We continue working hard to achieve our current goals and to identify new ones - all in our relentless pursuit of sustainability so we may enjoy at least another 60 years of success.

Sincerely,

Stu Thorn, CEO

2011 Goals

	Supply Relations: Conduct resource supply assessments with our top 20 suppliers based on spend and collaborate to identify and pursue sustainability objectives and targets by 2015.
	Product Development: Actively incorporate sustainability principles in the research and development of new products and services.

	Waste: Achieve and maintain zero-landfill status by end of 2017.
	Energy: Increase energy efficiency from 2010 baseline by 10% by end of 2020.
	Water: Increase operational water use efficiency from 2010 baseline by 10% by end of 2020.

	Operational Safety: Achieve and maintain a recordable injury and illness performance rate of 2.0 by 2012.
	Health & Wellness: Establish a health and wellness awareness campaign that includes education, training and nutritional advice by end of 2012.
	Education: Annually participate with academic institutions to promote sustainability initiatives within the communities in which we operate.

	Governance: Update our code of ethics, expand training and provide annual testing by end of 2011.
	Assurance: Obtain independent, third-party financial audits every year and environmental audits every two years.