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                                         © 2020 DXC Technology Company. All rights reserved.               March 16, 2021   1
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Ashfaquzzaman (Ashfaq) Syed, Ph.D.

            • Science and Technology
                     o      Research, analytical laboratory management, and scientific publications
            • Business and Marketing in Fortune 500 companies
                     o      US, European, African, Middle Eastern, and Asian markets to lead Business-
                            to-Business, Business-to-Consumer, and Business Process solutions
                     o      Leadership for organizational excellence and product commercialization
                            programs including support for cross–organizational new technology projects
            • Information Technology
                     o      Program Executive & Applications Portfolio Manager (North America and
                            Europe)
                     o      Currently US Region Marketing Lead for Compliance Data xChange (CDX)
                            for automotive, electronics, heavy equipment, aerospace and defense
                            industries

            © 2020 DXC Technology Company. All rights reserved.                                 March 16, 2021   2
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What happened on March 10
                                                                       Alexander Graham Bell's original
                                                                       telephone, patented in 1876, worked by
                                                                       converting sound into an electrical
                                                                       signal via a 'liquid transmitter'. ... When
                                                                       sound waves hit the membrane, it
                                                                       caused vibrations, varying the strength
                                                                       of the current passing between the
                                 1876 The first telephone call is made needle and the contact.

                                 •   Harriet Tubman (1820-1913) Civil Rights Leader
                                 •   Hubert De Givenchy (1927-2018) Fashion Designer
                                 •   No Smoking Day (Second Wednesday of March)
        Andy Gibb                •   2000 The dotcom bubble bursts when the NASDAQ Composite stock market index
  (1958-1988) Pop Singer             peaks at 5408.60

  The word 'March' comes from the Roman 'Martius'. This was originally the first month of the Roman calendar and was
  named after Mars, the god of war. March was the beginning of our calendar year.

                                            © 2020 DXC Technology Company. All rights reserved.               March 16, 2021   3
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Engine Bay – becomes a comfortable nest                                                         Engine Bay – becomes a comfortable nest

                                          © 2020 DXC Technology Company. All rights reserved.                               March 16, 2021   4
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Effect of chemicals coating on engine wires
                                                                            The electrical wiring is composed of or
                                                                            insulated with “biodegradable soy-
                                                                            based materials.”

                                                                            Auto industry’s shift to wire insulation
                                                                            made from soy, as well as rice husks,
                                                                            wood, peanut oil, corn and other
                                                                            sugars.

                      © 2020 DXC Technology Company. All rights reserved.                                   March 16, 2021   5
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Catalytic converter thefts (as of February 2021)
                                                              A catalytic converter is part of a vehicle's exhaust
                                                              system. It converts pollutants to less toxic material.

  Three precious metals inside the converter:
       o    Platinum: about $1,500 an ounce
       o    Rhodium: about $30,000 US an ounce
       o    Palladium: $2,800 - $3,000 CDN an ounce
       Reference: Montreal, Canada based Kitco Metals
   Reference: An ounce of gold is currently selling for about $2,200
                     (1 Ounce = 28.35 Grams)

                                             © 2020 DXC Technology Company. All rights reserved.           March 16, 2021   6
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Why You Must Have A Product Chemical Data
Compliance Management Program

         Dr. Ashfaquzzaman Syed
         US Region CDX Marketing
                             © 2020 DXC Technology Company. All rights reserved.   March 16, 2021   7
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Today’s webinar

        Chemistry and chemicals
        Risks to the environment, human health, and businesses

        Regulations and directives requiring chemical data
        compliance

        Strategies and challenges in complying with regulations
        and directives

        Solutions and recommendations

                       © 2020 DXC Technology Company. All rights reserved.   March 16, 2021   8
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Fact – Chemicals surround us

         Chemical Manufacturing

                                  © 2020 DXC Technology Company. All rights reserved.   March 16, 2021   9
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Fact: From centuries ago to modern times, chemicals are the
foundation of everything around us

Discovery of bronze (an alloy created
when copper is combined with tin)
                                                                                                              Discovery of Anesthetics
                                                                                                  Development and commercialization
                                                                                                  of cosmetics

The bright colors of the display in a
smartphone are produced by small            The invention of vulcanized rubber by
amounts of rare earth elements, including   Charles Goodyear in 1843 kickstarted
yttrium, terbium, and dysprosium.           the polymer and plastics industries

                                            © 2020 DXC Technology Company. All rights reserved.                             March 16, 2021   10
Chemistry helps us solve many problems
•   Creating sustainable energy
•   Managing our environment
•   Providing clean and safe drinking water
•   Promoting human and environmental health
     ✓   What we eat
     ✓   What we wear
     ✓   Transportation
     ✓   Everyday technology
     ✓   How we get energy to power equipment
     ✓   Manufacturing industrial equipment and products
     ✓   Medications
          o   For example, saving lives with vaccines in case of
              current pandemic

                                       © 2020 DXC Technology Company. All rights reserved.   March 16, 2021   11
Chemicals add cost to businesses

                       $47 M                                      $138 M
   One company’s cost in 2019                                       Five companies’ combined
                                                                    cost in 2011-12

                          © 2020 DXC Technology Company. All rights reserved.              March 16, 2021   12
$47 Million: Cost of non-compliance

                                                                        WASHINGTON (September 19, 2019)
                                                                        ▪   Under a settlement with the US Environmental
                                                                            Protection Agency (EPA) and the US
                                    $47 million                             Department of Justice, Hyundai Construction
                                                                            Equipment Americas, Inc. (HCEA) and
                                    civil penalty                           Hyundai Heavy Industries Co. Ltd (HHI)
                                                                            (collectively known as “Hyundai”) agreed to
                                    for violating                           pay a penalty.

                                                                        ▪
                                    Title II of the                         The settlement resolves allegations that
                                                                            Hyundai sold heavy construction vehicles with
                                    Clean Air Act                           diesel engines that did not meet the Clean Air
                                                                            Act emission standards.

                                                                        Reference: EPA Press Office (press@epa.gov)

                      © 2020 DXC Technology Company. All rights reserved.                                             March 16, 2021   13
And the $138 Million combined cost?
                                                $81.6 million in fines for the mishandling of products sold
                                                in its stores that became damaged or were returned—thus
                                                becoming hazardous waste
                                                   • $60 million to resolve Clean Water Act violations in California, including the
                                                     illegal dumping of corrosive and hazardous liquid wastes into drains
                                                   • $14 million to resolve violations to the federal Insecticide, fungicide, and
                                                     rodenticide Act (FIFRA) in Missouri
                                                   • $7.6 million civil penalty and agreement to implement a comprehensive,
                                                     nationwide environmental compliance program to manage hazardous waste
                                                     generated at its stores (Siros, 2013)

 $138 M
   Cost of                                                       These fines exemplify why US retailers, like
                                   2011: $22.50 million Walmart and Target, are becoming more
non-compliance
                                                                 attentive to the chemical ingredients in the
                                                                 products on their shelves and developing
                                   2012: $16.60 million and implementing chemical policies that
                                                                 challenge brands selling in their stores to
                                   2012: $13.75 million be more transparent about chemical
                                                                 ingredients in their products, as well as
                                    2012: $3.60 million avoiding chemicals of concern to human
                                           (Berlin & Sieg, 2013) health and the environment.

                     © 2020 DXC Technology Company. All rights reserved.                                                     March 16, 2021   14
The story continues

                                         $150 million in lost sales and product reformulation
                                         for Sony (Lewis, Iiroff, Byrne, Booth, & Baue, 2008)
 In 2001, cables in Sony PlayStation game systems were found to have high levels of
 cadmium. Dutch authorities stopped the shipment of 1.3 million units to Holland during the
 highest selling season, Christmas.

                                      18% loss in stock value, from US $20.69 on 1 August,
                                      2007 to US $17.25 on December 28, 2007
                                      (PricewaterhouseCoopers, ecoVadis, & InSeAd, 2010)

                         In 2007, more than 9 million toys, including Barbie dolls, were
                         recalled due to lead in their paint, causing $110 million in recall
                         costs, including a necessary communication campaign.

                                   © 2020 DXC Technology Company. All rights reserved.     March 16, 2021   15
Hazards of commonly used chemicals
                                                                                              Conflict Minerals

   Brominated Flame Retardants (BFRs)

                                        © 2020 DXC Technology Company. All rights reserved.                       March 16, 2021   16
Heavy metal toxicity causes abnormal development and growth
                                                                                      Early 1990s:
                                                                                        European
                                                                                          Union
                                                                                       recognized
                                                                                      severe heavy
                                                                                      metal problem

                                                                 ELV required
                                                                                     Miscarriages            Poisoning of
                                                                  Automotive       and birth defects         the drinking
                                                                OEMS selling                                water: Improper
                                                                   in EU to        were increasing            disposal of
                                                               identify, reduce,
                                                                 and eliminate      at considerable          automobiles,
                                                                                                              appliances,
                                                                 heavy metals         rates during            electronics
                                                                                         1980s

                                                                                         Automotive
                                                                                         selected as
                                                                                      “first” target for
                                                                                      remediation via
                                                                                         End-of-Life
                                                                                      Vehicles (ELV)

                       © 2020 DXC Technology Company. All rights reserved.                                 March 16, 2021   17
Chemicals of concern in various products
 •   Bromine: Used in Brominated Flame Retardants (BFRs)
         o   BFRs are added to plastics for fire resistance. Heat and UV-ray exposure in cars
             can accelerate the breakdown of these chemicals and possibly increase their
             toxicity.
         o   Some BFRs have been associated with thyroid problems, learning and memory
             impairment, decreased fertility, behavioral changes, and other health problems.

 •   Chlorine: Used in Polyvinyl Chloride (PVC)
         o   PVC contains chemicals called phthalates, some of which have been associated
             with decreased fertility, pre-term deliveries, and damage to the liver, testes,
             thyroid, ovaries, kidneys, and blood.
         o   There is also evidence that phthalates can pass from mothers to babies through
             the placenta and through breast milk.

 •   Lead and lead compounds:
         o   Lead is still widely used for car batteries, paint, pigments, ammunition, cable
             sheathing, weights for lifting, weight belts for diving, lead crystal glass, radiation
             protection, and in solders for electronics. It is also often used to store corrosive
             liquids.
         o   Exposure can lead to potentially many health effects, including brain damage, and
             problems with the kidneys, blood, nerves, and reproductive system. It can also
             cause learning and behavioral problems.

          Did you know? Automobiles have parts containing bromine, chlorine, and other heavy metals.
                                                              © 2020 DXC Technology Company. All rights reserved.   March 16, 2021   18
Phthalates (f-THAL-ates) – What are they?
• A group of man-made chemicals, first
  introduced in 1920s, commonly known as
  “plasticizers”. Used to soften plastics and
  make them more flexible and durable.
                                                     CANNED FOOD LINERS               PLASTIC CONTAINERS      EPOXY ADHESIVES       CASH REGISTER RECEIPTS
       o   Diethyl Phthalate (DEP)
       o   Dibutyl Phthalate (DBP)
• Health risks:
       o DBP is listed on Substance of Very
         High Concern (SVHC) on the
         European Union’s list of potential             VINYL FLOORING                FLEXIBLE PVC PIPES            TOYS            CAULKS AND ADHESIVES

         endocrine disruptors as well as
         reproductive toxicant by the National
         Toxicology Program and the State of
         California under Proposition 65.

                                                        FOOD PACKAGING                  TEETHING TOYS      PERSONAL CARE PRODUCTS     SPORTS EQUIPMENT

  They’re in almost everything we touch, including cosmetics and personal care products, vinyl flooring, mini blinds and
  wallpaper, raincoats, medical equipment and devices (for example, blood storage bags and IV tubes), plastic pipes, shower
  curtains, plastic film and food packaging, pharmaceuticals, lubricating oils, and detergents.

                                                 © 2020 DXC Technology Company. All rights reserved.                                    March 16, 2021   19
Conflict minerals – a regulation for ethical sourcing of a few minerals
   Tin (Cassiterite)
                                               Tungsten (Wolframite)

                                                                                   Regardless of source, 3TG minerals and
                                                                                   their derivatives are known as “Conflict
                                                                                   Minerals”, as defined by US Legislation
      Tantalum
                                         3TG
                 (Columbite-tantalite)

                                                      Gold                         (Dodd-Frank Section 1502) and any
                                                                                   other minerals / derivatives designated
                                                                                   by the U.S. Secretary of State.

   Sales of 3TG minerals have been linked with funding killings, violence, rape, and
   other human rights abuses in the Democratic Republic of Congo and other conflict zones.

                                                       © 2020 DXC Technology Company. All rights reserved.              March 16, 2021   20
Review regulations and directives

         Chemistry and chemicals
         Risks to the environment, human health, and businesses

         Regulations and directives requiring chemical data
         compliance
         Strategies and challenges in complying with regulations
         and directives

         Solutions and recommendations

                        © 2020 DXC Technology Company. All rights reserved.   March 16, 2021   21
Regulations and directives businesses need to know
… and be compliant
                                         RoHS2            REACH
                         EU-SRR

                  RoHS
                                     ELV                SCiP

        Japan                                                         Corp
                         Conflict
        RoHS                                                          Resp
                         Minerals
                                    EU-RRR           WEEE

    California     China
     RoHS          RoHS
                                 CA
                               Prop 65                           Conflict
                                                WFD              Minerals
                 Korea
                 RoHS

                                           © 2020 DXC Technology Company. All rights reserved.   March 16, 2021   22
Regulations – By region and year

    Regulations related to:
    • Chemicals & Substances
    • Packaging
    • Batteries
    • Waste
    • Energy & Safety

                                                                                     USA & Canada

                               © 2020 DXC Technology Company. All rights reserved.           March 16, 2021   23
Compliance evolution of regulatory materials and substances

    ELV                           RoHS                                     REACH                       WFD & SCiP
                                  Restriction of Hazardous                 Registration, Evaluation
    End-of-Life Vehicle                                                    and Assessment of           Waste Framework
                                  Substances                                                           Directive & Substances
                                                                           Chemicals
    ▪ First legislation of this   ▪ Ver. 1 2003, modeled on                                            of Concern in Products
      type (2000)                   ELV, limited effect                    ▪ Broadest scope, most      Database
    ▪ ELV has been &                                                         industries & ~211
                                  ▪ “Waste Electrical /                      chemicals                 ▪ Jan 4, 2021 start of
      remains effective at          Electronic Equipment”                                                reporting obligation
      reducing the quantity         (WEEE) & 2010 RoHS 2,                  ▪ REACH Candidate List
      of heavy metals in            CE mark, much more                       “Substances of Very       ▪ All products with
      vehicles introduced           effective                                High Concern (SVHC’s)       REACH SVHCs sold in
      into the environment                                                   include heavy metals,       EU to be reported
                                  ▪ RoHS and Waste                           plasticizers, flame
    ▪ Target is and continue        Electrical and Electronic                                          ▪ Foundation for EU
      to be passenger cars                                                   retardants, etc., found
                                    Equipment Directive                      in all product              Circular Economy
      and trucks as high            (WEEE) further extended                                              Action Plan, a main
      heavy metals                                                           categories, for example
                                    by new regulation                        in Tupperware™,             building block of the
      contributors with             versions during the                                                  European Green Deal
      limited number                                                         instruments,
                                    intervening years                        wiring, etc.
      of OEMs

                                             © 2020 DXC Technology Company. All rights reserved.                           March 16, 2021   24
Regulations and Directives
         Directive of the European Union - aims to ensure that End-of-Life Vehicles (ELVs) are
         managed sustainably to eliminate hazardous substances in cars. Rules require that most ELV
         parts and materials are reused or recycled.
         ELV pushes producers to manufacture new vehicles without hazardous substances
         particularly lead, mercury, cadmium, and hexavalent chromium, thus promoting the reuse,
  ELV    recyclability, and recovery of waste vehicles.

          Directive of the European Union – Restrictions of Hazardous Substances (RoHS) aims to
          reduce the amount of toxic waste produced by electronics post their use; therefore, it is
          closely linked with Waste Electrical and Electronic Equipment Directive (WEEE).
          Restricts the use of six hazardous materials in manufacturing various types of electronic and
          electrical equipment: Cadmium, Lead, Mercury, and Hexavalent Chromium, Polybrominated
          Biphenyl (PBB), and Polybrominated Diphenyl Ether (PBDE) flame retardants.

          RoHS Worldwide includes: US California RoHS, China RoHS, Japan RoHS, Korea RoHS,
          UAE RoHS, India RoHS, Turkey RoHS, Norway RoHS, Singapore RoHS, Brazil RoHS, and
          Eurasian/Russian RoHS

                                 © 2020 DXC Technology Company. All rights reserved.            March 16, 2021   25
Regulations and Directives

         Registration, Evaluation, Authorization of Chemicals (REACh) Regulation of the European
         Union - Adopted to improve the protection of human health and the environment from the
         risks that can be posed by chemicals.
         REACH applies to all chemical substances, not only those used in industrial processes, but
         also those in our day-to-day lives, for example, cleaning products, paints, clothes, furniture,
         and electrical appliances. Up to 20 Jan 2021, there are 211 substances on the SVHC
         candidate list.

          Directive of the European Union – Waste Framework Directive (WFD) sets measures to
          address adverse impacts of the generation and management of waste on the environment
          and human health, and for improving efficient use of resources, which are crucial for the
          transition to a circular economy.
          Companies that produce, import, or supply articles containing Candidate List substances
          have to submit information on these articles placed on EU market into a database, called
          SCIP database, as of January 5, 2021.

                                  © 2020 DXC Technology Company. All rights reserved.             March 16, 2021   26
Reusability, Recyclability, and Recoverability
           The Toxic Substances Control Act (TSCA or TOSCA0) - a U.S. law, passed by the
           Democratic United States Congress in 1976 and administered by the United States
           Environmental Protection Agency (EPA), that regulates the introduction of new or already
           existing chemicals.

           Reusability, Recyclability, and Recoverability (RRR) Compliance - a Directive 2005/64/EC
           of the European Parliament and of the Council of 26 October 2005 on the type-approval of
           motor vehicles with regards to their reusability, recyclability and recoverability and
           amending Council Directive 70/156/EEC.
   RRR
           Ship Recycling Regulation (EU SRR) - European Parliament and the Council of
           the European Union adopted SRR in 2013 with an aim to reduce the negative impacts linked
           to the recycling of ships flying the flag of EU Member States. All EU-flagged vessels to be
           recycled after December 31, 2018 were required to have a Ready for Recycling Certificate.
           For vessels in operation and flying the flag of an EU member state, the certified IHM is
  EU SRR   required starting December 31, 2020.

                                   © 2020 DXC Technology Company. All rights reserved.          March 16, 2021   27
Regulations, Directives, and Corporate Responsibility
             Proposition 65 requires businesses in California to provide warning and publish a list
             of chemicals known to cause cancer, birth defects, or other reproductive harm. This
             requirement applies, regardless of whether a business is located in California or out-
             of-state, as long as its products cause exposures to individuals in California.

             Conflict minerals: A regulation and global standard for ethical sourcing of a few
             minerals and conflict minerals refers to raw materials that come from a particular part
             of the world where conflict is occurring and affects the mining and trading of those
             materials. In the U.S. in 2010, the Dodd-Frank Consumer Protection Act became a
             law. Section 1502 of that act addresses the international trade and use of conflict
             minerals.

              Corporate responsibility (CR) is about the impact an organization makes on society,
              the environment, and the economy. Having an effective CR program contributes
              positively to all stakeholders, adds value for the organization itself, and ensures it
              operates in a sustainable way.

                              © 2020 DXC Technology Company. All rights reserved.             March 16, 2021   28
Strategies for managing compliance

        Chemistry and chemicals
        Risks to the environment, human health, and businesses

        Regulations and directives requiring chemical data
        compliance

         Strategies and challenges in complying with regulations
         and directives

         Solutions and recommendations

                        © 2020 DXC Technology Company. All rights reserved.   March 16, 2021   29
Challenge due to lack of knowledge on product composition

  When asked – What’s in your product?
               Provide evidence to support your reply

          Cannot be answered immediately, because
              •   A complex product presents a complex situation to
                  answer such a question.
              •   The answer includes the supply chain from the
                  producer of the finished article. The companies making
                  materials know what chemicals are in the products.
              •   Most often Full Material Declaration (FMD) is required
                  by the regulators.

                              © 2020 DXC Technology Company. All rights reserved.   March 16, 2021   30
Cost of not knowing chemicals in products …
… leads to not being compliant with regulations, affecting:
   • Supply chain management costs
   • Product reformulation costs
   • Declines in sales and shareholder value
   • Damaged brand reputation
   • Government fines
   • Lawsuit settlements
   • Crisis management costs
   • Limited reporting of legal fees
   Businesses must have a strategy for obtaining knowledge about the
   chemicals in their products.

                                       © 2020 DXC Technology Company. All rights reserved.   March 16, 2021   31
Two approaches to strategies
                                          Passive                                                     Active
 •  Involve low initial investment cost
 •  Offer delayed investment
                                                                                                •    Require upfront investments
 •  Incorporate minimal compliance with
                                                                                                •    Deliver long-term value, staying ahead of
    government regulations
                                                                                                     regulatory and market demands
 • Ignore a few chemicals that may be present
                                                                                                •    Require knowing what chemicals are in your
    over defined thresholds in products
                                                                                                     products
 • Have no oversight measures
                                                                                                •    Enable innovation, thereby generating long-
 These actions result in:                                                                            term value
 •   Supply chain management costs                                                              •    Use safer alternatives
 •   Product reformulation                                                                      •    Result in increased transparency
 •   Decline in sales                                                                           •    Offer opportunities for enhancing brand,
 •   Damaged reputation                                                                              Increased sales
 • High crisis cost of chemicals management                                                     •    Make it easier to achieve corporate
                                                                                                     responsibility goals
 • Lawsuits and settlements
 More common strategy, but leaves companies                                                     Benefit human health and environment, and
 vulnerable to chemical crises = significant costs.                                             demonstrate corporate responsibility.

                                               © 2020 DXC Technology Company. All rights reserved.                                   March 16, 2021   32
Businesses actively managing compliance
•   Implement a robust product chemical
    compliance and regulatory reporting solution
    for their business and their suppliers
•   Integrate knowledge of chemicals in products
    and supply chains into their management
    systems and create value for their
    organizations
•   Do not wait for product recalls or market
    demands before knowing the chemicals in their
    products and supply chains and reducing the
    use of hazardous chemicals
•   Are ready to respond quickly to new substance
    restrictions
•   Do not have crisis-driven change and
    increased costs due to any product
    reformulation

                      © 2020 DXC Technology Company. All rights reserved.   March 16, 2021   33
Addressing business challenges

 You are in the business of producing profitable
 products with sustainable operations. You need a
 solution that enables you manage the product
 chemical compliance and helps you in ...

    •   Knowing full product chemical composition
    •   Building relationships with your suppliers
    •   Knowing which regulations and directives must
        be complied with
    •   Addressing conflict minerals issues if the
        product contains 3TG materials
    •   Dealing with poor data quality (chemical
        ingredient information)
    •   Achieving goals set for sustainability and
        corporate responsibility
    •   Implementing a robust solution

                                        © 2020 DXC Technology Company. All rights reserved.   March 16, 2021   34
Solutions for compliance management

        Chemistry and chemicals
        Risks to the environment, human health, and businesses

        Regulations and directives requiring chemical data
        compliance

        Strategies and challenges in complying with regulations
        and directives

        Solutions and recommendations

                       © 2020 DXC Technology Company. All rights reserved.   March 16, 2021   35
The answer is Compliance Data eXchange (from DXC)
                                                  ✓ Provides manufacturers a secure, centralized web application to accurately
                                                    gather and analyze material content data throughout the entire global supply
                                                    chain
                                                  ✓ CDX enables a company to create, receive and evaluate the information
                                                    required for the maintenance and reporting of material compliance data within
                                                    or cross industry while protecting intellectual property
                                                  ✓ Collect and maintain supply chain full material substance declarations
                                                  ✓ Uses an established, common framework that provides quality global
                                                    reporting to various legal requirements whether you manufacture, assemble
                                                    or sell
                                                  ✓ Leader in multi-industry product sustainability, regulatory substance &
                                                    corporate responsibility data collection, reporting
 Enabling clients in managing product
 chemical compliance since 2011.                  ✓ Many other product content concerns, with managed regulatory thresholds
                                                    and exemptions, sunset dates, and exceptions
 Cloud-based Software-as-a-Service
                                                  ✓ Leverages the proven functionality of DXC’s International Material Data
 (SaaS) analytics solution for product              System (IMDS)
 chemical management and supply chain
 communication.

                                         © 2020 DXC Technology Company. All rights reserved.                            March 16, 2021   36
When you select CDX …

                            RoHS2
      China
                EU-SRR                                                       FMD
      RoHS
                                                                           with MDS           Data
                                    TSCA
               Japan                                                                         Security
               RoHS     RoHS
   WFD
                                   SCiP

  California
   RoHS                  REACH
                                                            CDX                          CMD         Multiple
                                                                                                    Regulations
               EU-RRR
                                   Conflict
                                   Minerals
     WEEE
                Korea     ELV
                RoHS
                                                                           Corporate
                           CA                                            Responsibility
                         Prop 65
                                                                        Comprehensive product composition information with 136 basic
                                                                        substances in the system

 Superior value compared to competitive solutions
   No additional cost if new regulations need to be added
                                                                                             New regulations based on what’s in your product.

                                              © 2020 DXC Technology Company. All rights reserved.                                     March 16, 2021   37
Benefits CDX delivers to clients
 Cross-industry solution                                                Automation
 • CDX is accessible through the internet via a web
   browser and ready to use by any company in                           ✓ Saves manual effort, time and money while
   Electronics, Automotive, Heavy Equipment, Aerospace &                  gaining a better overview, higher quality data and
   Defense                                                                faster access to information for compliance
 • CDX employs chemical, material and legal advisors to                   reporting
   inform supply chain participants regarding current
   chemical topics of concern. This service provides data               ✓ Aggregates information while providing high-level
   for materials manufactured to a public standard, a                     security and confidentiality
   service center and training through our partners.

 Security
 ✓ Six layers of security: Physical and network environment protection,
   hardware and operating system safeguards, database and application
   security, as well as all access and authorization processes

                                           © 2020 DXC Technology Company. All rights reserved.                           March 16, 2021   38
How CDX works
 Dataflow via centralized database and aggregation of components

                                                                                                        Tier 3
               Tier 1

               Tier 2

 Some companies may use Excel spreadsheets to manage the product data compliance requirements, this approach is typically
 burdensome and ineffective. As companies grow and operations grow, spreadsheets can be overwhelming and time consuming.

 CDX is a cloud-based Software-as-a-Service (SaaS) analytics solution for product chemical management and supply chain
 communication. CDX is centrally operated and supported by our company freeing you from IT consideration and constraints.

                                                 © 2020 DXC Technology Company. All rights reserved.                        March 16, 2021   39
Material Data Sheet in CDX
                              A Material Data Sheet in CDX is a
                              container with relevant information
                              •      The Material Data Sheet (MDS) created using CDX
                                     provides a Partial to Full Material Declaration (FMD)

                              •      CDX enables standardized creation and exchange
                                     of material data sheets or product structures
                                     throughout the supply chain, supporting
                                     establishment of material management processes.

                     © 2020 DXC Technology Company. All rights reserved.         March 16, 2021   40
Material declarations: Partial or Full declaration
•   CDX enables both
      o   Partial Declaration, or
      o   Full Material Declaration

•   The customer or industry determines
      o   Partial Declaration: an incomplete full declaration. Only some of the ingredient information is provided and the
          sum of the weights do not result in the complete weight of the part
      o   Full Declaration: complete ingredients information is provided, including all weights and percent information of
          the tree nodes. The weight of all parts sum up to the weight of the product. The percent values add up to 100%.
          MDSs can be marked as full declaration (100% declaration checkbox), and the check routine will report errors if
          weights or percent values are missing. Unregulated content can be marked confidential (by the suppliers)
      o   Declaration of conformance: can be Full, Partial or a combination of both

•   If a Full Material Declaration (FMD) is required
      o   A substance (or basic substance): is the building block of a tree structure. A substance is an element of the
          periodic table. A basic substance is a group of substances, or a compound, that appear on various environmental
          watch lists. If you report to a RoHS, GADSL, or REACh list, you will use substances

                                              © 2020 DXC Technology Company. All rights reserved.                  March 16, 2021   41
How CDX handles regulations
 •   CDX addresses regulations concerning substances in materials and articles
       o   References either individual substances or substance groups

 •   Regulations are either
       o   Global and maintained by DXC staff, or
       o   Company-specific and maintained by a company administrator

 •   Regulations change periodically
       o   CDX maintains one current version, an unlimited number of historical versions, and an optional future version

 •   CDX reflects regulatory frameworks, such as REACh, RoHS, CalProp65 by providing
       o Substance flags, such as D (Declarable), P (Prohibited), or E (Exempted)
       o Threshold / limit values for substances / substance groups
       o Due dates, or sunset dates
       o Exemptions, authorizations, or applications
       o QueryLists according to IPC 175x, as well as UseDescriptors

                                            © 2020 DXC Technology Company. All rights reserved.                 March 16, 2021   42
Next step …..

         https://public.cdxsystem.com

                 © 2020 DXC Technology Company. All rights reserved.   March 16, 2021   43
https://public.cdxsystem.com

     © 2020 DXC Technology Company. All rights reserved.   March 16, 2021   44
Registering your company in CDX

                    © 2020 DXC Technology Company. All rights reserved.   March 16, 2021   45
Bill of Assembly – Various levels

                      © 2020 DXC Technology Company. All rights reserved.   March 16, 2021   46
Tree structure and menu items in CDX

                                 Component: Is used in assemblies in whole number quantities. For example: a
                                 resistor, an engine, a screw, a light bulb. A component has fixed weight and is
                                 used in its entirity

                                 Material: Represents a homogeneous structure. For example: steel, polymer, wire

                                 Basic Substance: Opens the basic substance request screen to submit a
                                 request to add an as yet not existing basic substance.

                        © 2020 DXC Technology Company. All rights reserved.                                        March 16, 2021   47
Building a Bill of Assembly at component levels

                      © 2020 DXC Technology Company. All rights reserved.   March 16, 2021   48
Bill of Assembly – materials, substances, and regulations

                                                                            Regulations and
                                                                              Directives

                      © 2020 DXC Technology Company. All rights reserved.              March 16, 2021   49
Sample list of regulations and directives in CDX

                                                       In CDX, Clients can set up:
                                                         ✓    Common Regulations
                                                         ✓    Company Specific Regulations
                                                         ✓    Global Basic Structure Lists
                                                         ✓    Company Specific Basic Substance Lists

                      © 2020 DXC Technology Company. All rights reserved.                          March 16, 2021   50
REACH candidate list in CDX

                                                                One Bill of Assembly (also commonly known
                                                                as BoM) may have many regulations.
                                                                Selecting REACH candidate list identifies
                                                                them in red.

                       © 2020 DXC Technology Company. All rights reserved.                        March 16, 2021   51
RoHS list in CDX

                                                              One BoM may have many regulations.
                                                              Selecting RoHS list identifies them in red.

                   © 2020 DXC Technology Company. All rights reserved.                             March 16, 2021   52
Conflict minerals declaration via CDX
  CDX supports all versions
  of CMRTs
         o CMRT: Conflict Minerals
           Reporting Template
         o CMRT are from RMI
           (Responsible Minerals
           Initiative)

 http://www.responsiblemineralsinitiative.org/

                                                 © 2020 DXC Technology Company. All rights reserved.   March 16, 2021   53
Conflict minerals declaration – Smelters list in CDX

                      © 2020 DXC Technology Company. All rights reserved.   March 16, 2021   54
And the cost?

Based on delivering the highest value at the
                                lowest price
                                                                                             • Comprehensive product
➢ Simple pricing structure based on company size and                                           composition information with 136
                                                                                               basic substances in the system
  their compliance program:                                                                  • Full Material Declaration with
     o   Entry Level Companies                                                                 Material Data Sheet and Conflict
     o   Small Companies                                                                       Minerals Declaration
     o   Medium Companies                                                                    • Data Security at no additional cost
     o   Large Companies                                                                     • Multiple regulations and directive
                                                                                               at no additional cost
➢ License provides management of multiple regulations

         No additional cost if new regulations need to be added
                   Visit for details: https://public.cdxsystem.com/en/web/cdx/ordering_mds

                                       © 2020 DXC Technology Company. All rights reserved.                             March 16, 2021   55
Credit Card Payments Now Accepted

      DXC Technology
     supports credit card
      ordering for CDX
     MDS and CDX CMD
         Licenses.

                            © 2020 DXC Technology Company. All rights reserved.   March 16, 2021   56
Prohibition under TSCA – announced February 5, 2021
The manufacturing, processing, and use of two chemical substances have been prohibited
effective March 8, 2021 by US EPA
  1. DecaBDE means the chemical substance decabromodiphenyl ether (CASRN
     1163–19–5)
          o   After July 6, 2022: for use in curtains in the hospitality industry, and the curtains to which
              decaBDE has been added.
          o   After January 6, 2023: for use in wire and cable insulation in nuclear power generation
              facilities, and decaBDE-containing wire and cable insulation.
          o    After January 8, 2024: for use in parts installed in and distributed as part of new aerospace
              vehicles

  2. Phenol, Isopropylated Phosphate (3:1) (PIP 3:1); Regulation of Persistent,
     Bioaccumulative, and Toxic Chemicals Under TSCA Section 6(h)
          o   Prohibits the processing and distribution of PIP (3:1) and PIP (3:1)- containing products, the
              release of PIP (3:1) to water during manufacturing, processing, and distribution
          o   Naming a few use: Processing and distribution in commerce for use in hydraulic fluids,
              lubricants and greases

  Impacts a large number of industries
  Petroleum Refineries, Petroleum Lubricating Oil and Grease Manufacturing, Paint and Coating Manufacturing, Plastics Material and Resin Manufacturing,
  Adhesive Manufacturing, Polish and Other Sanitation Good Manufacturing, Automobile Manufacturing, Air-Conditioning and Warm Air Heating Equipment
  and Commercial and Industrial Refrigeration Equipment Manufacturing, plus many more

                                                           © 2020 DXC Technology Company. All rights reserved.                                 March 16, 2021   57
Next step …..

         https://public.cdxsystem.com

                 © 2020 DXC Technology Company. All rights reserved.   March 16, 2021   58
How do I learn more about CDX
  Free web-based trainings to introduce you to                        Basic concepts of CDX, short videos and other
      the Compliance Data eXchange (CDX)                                         informational materials
  https://public.cdxsystem.com/en/web/cdx/events                       https://public.cdxsystem.com/en/web/cdx/tutorials

                                      © 2020 DXC Technology Company. All rights reserved.                       March 16, 2021   59
Thank You
cdx-info@DXC.com

                   © 2020 DXC Technology Company. All rights reserved.
CDX – Backed by the Strength of DXC Technology

Customer       Citizen           Employee                                     IT-enabled      Acquisitions,
experience   engagement        empowerment                                   transformation   divestitures

     From the leading pure-play supplier in cloud services,
              material compliance solutions, and
               secure supply chain submissions
                     for almost 20 years
                       © 2020 DXC Technology Company. All rights reserved.                        March 16, 2021   61
About DXC Technology

  DXC Technology (NYSE: DXC) helps global companies run their mission
  critical systems and operations while modernizing IT, optimizing data
  architectures, and ensuring security and scalability across public, private
  and hybrid clouds. With decades of driving innovation, the world’s largest
  companies trust DXC to deploy our enterprise technology stack to deliver
  new levels of performance, competitiveness and customer experiences.
  Learn more about the DXC story and our focus on people, customers and
  operational execution at www.dxc.technology.

                              © 2020 DXC Technology Company. All rights reserved.   March 16, 2021   62
DXC – World Leader in IT Business

 ~$20B                         200+
                               partner network with                                    ~6,000
 global IT services leader     best-of-breed partners                                  customers
                                                                                       200+ Fortune 500 companies

 60+
 years of innovation
                               ~138,000                                                #122
                               employees worldwide                                     in the 2019 Fortune 500
 delivering mission-critical
 systems for customers

 100
 earned top score: 2019
                               70+                                                     10,000+
                               countries                                               Agile/DevOps
 Disability Equality Index                                                             professionals

                                 © 2020 DXC Technology Company. All rights reserved.                                March 16, 2021   63
Customers and Industries We Serve

                                  Insurance                Healthcare &             Travel,           Banking &         Aerospace &
                                                           Life Sciences            Transportation    Capital Markets   Defense
                                                                                    & Hospitality

   6,000+                         Consumer &
                                  Retail
                                                          Energy, Utilities,
                                                          Oil & Gas
                                                                                    Manufacturing &
                                                                                    Automotive
                                                                                                      Public Sector     Technology, Media &
                                                                                                                        Telecommunications

 Customers around the world
 across a variety of industries

                                  © 2020 DXC Technology Company. All rights reserved.                                    March 16, 2021   64
References
Sony Case:
lewis, S., liroff, S., Byrne, M., Booth, S. and Baue B. (2008). Toxic Stock Syndrome: how Corporate financial reports fail to Apprise Investors of the risks of Product recalls and Toxic
liabilities. Investor Environmental Health Network. retrieved from http://iehn.org/ publications.reports.toxicstock.php.

Walmart case:
Siros, S.M. (2013). Wal-Mart Pleads guilty and Agrees to Pay $82M fine for Improper disposal of hazardous Substances. Jenner and Block: Corporate Environmental Blog. retrieved from
http://environblog.jenner. com/corporate environmental_l/2013/05/ wal-mart-pleads-guilty-and-agrees-topay-82m-fine-for-improper-disposal-ofhazardous-substances.html.

Mattel, Inc case:
PricewaterhouseCoopers, ecoVadis, & InSeAd. (2010). Value of Sustainable Procurement Practices: A quantitative analysis of value drivers associated with Sustainable Procurement
Practices. retrieved from http://www.ecovadis.com/ website/l-en/webinars-whitepapers. EcoVadis-13.aspx.

Other Retail Stores:
Berlin, S. & Sieg, r. (2013). united States: ePA Is hitting retail Stores for hazardous Waste Violations. Kilpatrick Townsend & Stockton LLP. retrieved from
http://www.kilpatricktownsend.com/en/ Knowledge_Center/Alerts_and_Podcasts/ Legal_Alerts/2013/06/EPA_is_Hitting_ Retail_Stores_for_Hazardous_Waste_ Violations.aspx.

Hyundai Case:
WASHINGTON (September 19, 2019): Under a settlement with the U.S. Environmental Protection Agency (EPA) and U.S. Department of Justice, Hyundai Construction Equipment Americas
Inc.(HCEA) and Hyundai Heavy Industries Co. Ltd (HHI) (collectively known as “Hyundai”) has agreed to pay a penalty.

The settlement resolves allegations that Hyundai sold heavy construction vehicles with diesel engines that did not meet Clean Air Act emission standards.
Reference: EPA Press Office (press@epa.gov)

Organophosphate Ester Flame Retardants: Are They a Regrettable Substitution for Polybrominated Diphenyl Ethers?,
Arlene Blum, Mamta Behl, Linda S. Birnbaum, Miriam L. Diamond, Allison Phillips, Veena Singla, Nisha S. Sipes, Heather M. Stapleton, Marta Venier,
Environ. Sci. Technol. Lett. 2019.
https://doi.org/10.1021/acs.estlett.9b00582

                                                                         © 2020 DXC Technology Company. All rights reserved.                                                       March 16, 2021   65
Backup Slides

 © 2020 DXC Technology Company. All rights reserved.   March 16, 2021   66
CDX Pricing Is Based On Usage
          Use basic functions for free by Registering in CDX
          •   Unlimited secure user accounts
          •   Create MDSs and CMDs for unlimited sites within your company
          •   Evaluate your own MDSs and CMDs against legislations
          •   You can submit to customers within CDX if customer has CDX License

          CDX CM Manager license: Purchase for 2500€ (about
          $2950 ) annually for extended functions
          •   Request unlimited supplier CMDs
          •   Review and Integrate supplier CMDs into your own
          •   Revise supplier information added to your owned CMDs
                                                                                          Leverage CDX based on your
          •   Export IPC-1755 CFSI CMRTs                                                  company’s requirements – with no
                                                                                          hidden costs or added fees,
                                                                                          from the only company supporting
          Capability for Chemical Data Compliance Management                              supply chain material compliance
          Purchase licenses starting at 2250€ (about $2815)                               for over 15 years.
          • Simple pricing structure based on company size and their compliance
            program
          • Review and accept/reject supplier submissions
          • Incorporate supplier MDSs into your owned MDSs

                                    © 2020 DXC Technology Company. All rights reserved.                       March 16, 2021   67
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