Manufacturing Environmental Costs

As a tool for managing our business, Lord Corporation measures manufacturing environmental costs annually. The metrics used for measuring these costs includes depreciation from capital projects, expense, internal labor and hazardous waste disposal costs. A typical capital cost may be for replacing coal boilers with gas boilers. A typical expense cost would cover the removal of an old underground tank. Worldwide environmental costs from our operations as a percentage of sales is shown on the figure below. These figures show that costs have risen with sales. Costs for remediation are not included.

Environmental costs from our operations are compared to sales on the graph below.

Environmental Costs as a Percent of Sales by Year