Callaway 2012 Annual Report Download - page 20

Environmental Matters
The Company’s operations are subject to federal, state and local environmental laws and regulations that
impose limitations on the discharge of pollutants into the environment and establish standards for the handling,
generation, emission, release, discharge, treatment, storage and disposal of certain materials, substances and
wastes and the remediation of environmental contaminants (“Environmental Laws”). In the ordinary course of its
manufacturing processes, the Company uses paints, chemical solvents and other materials, and generates waste
by-products that are subject to these Environmental Laws. In addition, in connection with the Top-Flite asset
acquisition in 2003, the Company assumed certain monitoring and remediation obligations at its manufacturing
facility in Chicopee, Massachusetts. In February 2013, the Company completed the sale of this facility. As a
result, the Company incurred additional costs to address certain estimated ongoing environmental remediation
issues in connection with the sale of this facility.
The Company adheres to all applicable Environmental Laws and takes action as necessary to comply with
these laws. The Company maintains an environmental and safety program and employs full-time environmental,
health and safety professionals at its facilities located in Carlsbad, California, Chicopee, Massachusetts and
Monterrey, Mexico. The environmental and safety program includes obtaining environmental permits as
required, capturing and appropriately disposing of any waste by-products, tracking hazardous waste generation
and disposal, air emissions, safety situations, material safety data sheet management, storm water management
and recycling, and auditing and reporting on its compliance.
Historically, the costs of environmental compliance have not had a material adverse effect upon the
Company’s business. The Company believes that its operations are in substantial compliance with all applicable
Environmental Laws.
Sustainability
The Company believes it is important to conduct its business in an environmentally, economically, and
socially sustainable manner. In this regard, the Company has an environmental sustainability program which
focuses on key performance indicators and business objectives, including reductions of volatile organic
compound (VOC) emissions, reductions of hazardous waste, reductions in water usage, improved recycling and
development programs which involve the elimination or reduction of undesirable chemicals and solvents in favor
of chemically similar functional alternatives. These efforts cross divisional lines and are visible in the following
areas within the Company:
• Facilities through the partnership with local utilities to implement energy reduction initiatives such as
energy efficient lighting, demand response energy management and heating, ventilation and air
conditioning optimization;
• Manufacturing through lean initiatives and waste minimization;
• Product development through specification of environmentally preferred substances;
• Logistics improvements and packaging minimization; and
• Supply chain management through Social, Safety, and Environmental Responsibility audits of
suppliers.
The Company also has two existing programs focusing on the community, the Callaway Golf Company
Foundation and the Callaway Golf Community Giving program. Through these programs the Company and its
employees are able to give back to the community through monetary donations and by providing community
services. Information on both of these programs is available on the Company’s website at
www.callawaygolf.com. By being active and visible in the community and by embracing the principles of
environmental stewardship, the Company believes it is acting in an environmentally responsible manner.
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