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Industrial Environmental and Sustainability Policy

International Industrial Supply Inc. - October 9th, 2025

1. Policy Statement

International Industrial Supply Inc. is committed to leadership in environmental stewardship across its industrial distribution operations, including sourcing, warehousing, and transportation. We acknowledge our responsibility to prevent pollution, minimize our carbon footprint, and conserve natural resources.

Our policy framework is built upon three core principles:

  1. Compliance: We comply with all applicable local, regional, and national environmental laws, regulations, and industry codes.
  2. Prevention: We are committed to preventing pollution at the source, particularly concerning air emissions, water quality, and the handling of hazardous materials (such as industrial lubricants, fluids, and heavy metals).
  3. Continuous Improvement: We will establish, implement, and maintain a documented Environmental Management System (EMS) to continually improve our environmental performance.

2. Environmental Objectives (SMART Goals)

To deliver on this commitment, the Company has set the following measurable, time-bound objectives. The goals are designed to be sustainable, measurable, attainable, realistic, and timely. Progress against these objectives will be reviewed by the Environmental Steering Committee quarterly.

Objective A: Logistics and Fleet Emission Reduction

  • Target: Reduce total fleet fuel consumption by 7% within the next 18 months, relative to the current fiscal year baseline.
  • Metric Used: Liters/Gallons of fuel consumed per tonne-kilometer (TKM) transported.
  • Action Item: Implement route optimization software, enforcing a strict engine anti-idling policy, and conducting quarterly driver training focused on fuel-efficient operation techniques.

    Objective B: Industrial Waste Reduction

    • Target: Increase the diversion rate (recycling and reuse) of bulk industrial packaging waste (wood pallets, metal strapping, large plastic wraps) from 50% to 75% within 18 months.
    • Metric: Percentage of total inbound packaging waste diverted from landfill.
    • Action Item: Negotiate contracts with specialized recyclers for metal and plastic strapping, and establish a formalized program for pallet inspection and reuse across all of our warehouses.

    Objective C: Pollution Prevention and Spill Control

    • Target: Reduce the frequency of minor reportable spills (e.g., oils and industrial cleaners) to zero per quarter across all warehouse operations.
    • Metric: Number of environmental incidents/spills recorded per quarter.
    • Action Item: Updating the Spill Prevention, Control, and Countermeasure (SPCC) Plan, ensuring secondary containment measures are in place for all chemical and oil storage (elevated drainage stands for 55 gallon drums and 5 gallon pails, and making spill kit (Absorbents) training mandatory for all material handlers every six months.

    Objective D: Resource Efficiency in Facilities

    • Target: Reduce overall water consumption for facility and maintenance operations by 15% within 24 months.
    • Metric: Gallons of water consumed per month.
    • Action Focus: Auditing all restrooms and breakrooms for low-flow fixtures, reducing vehicle washing, landscaping), and optimizing the timing of automated irrigation systems.

    3. Scope and Responsibility

    This policy applies to all employees, contractors, and suppliers involved in the daily operations of International Industrial Supply Inc.

    The Operations manager is designated as the primary owner of this Environmental Policy and is responsible for allocating resources necessary to achieve the stated objectives. Every employee has a duty to report environmental hazards and adhere to all documented procedures.

    4. Documentation and Review

    This policy and the associated objectives will be reviewed, and if necessary, amended annually to ensure they remain relevant, meet legal requirements, and align with the Company's strategic goals.