Environmental Social & Governance Policy

General

Valence Surface Technologies and its business entities (“Valence”) strongly believe in the significance of an environmental, social, and corporate governance (“ESG”) program. We aspire to be responsible corporate citizens and believe that transparency and accountability are important foundations for creating value and building trust with our stakeholders to fulfill our long-term mission, vision and strategy. We have identified the ESG considerations relevant to our business and integrated them into our business practices to ensure that risk factors and opportunities are considered on a continuous basis. These ESG initiatives are designed to augment the environmental and social impact of our business practices. 

Policy

Our policy is based on the following objectives:

  • Engaged and Diverse Workforce – Our employees are our most valuable asset and are critical to the success of the business. The promotion of health and safety, respect for individuals and diversity, open communication, and professional development opportunities will enable us to attract and retain the most talented resources. We strive for a culture that hires, retains, develops and engages a high performing workforce to be most productive, while giving people meaning and purpose.  
  • Transparency and Organizational Compliance – We operate with integrity and endeavor to be the most trusted partner to our customers. We do this through open communication, systems and audits that are in accordance with company guidelines and applicable approvals, laws and regulations.
  • Reduce Company-Wide Emissions – We are committed to reducing resource consumption, hazardous waste and carbon footprint. We are able to achieve this through eco-efficient management strategies and continuous improvement while working with local agencies to meet regulatory standards.
  • Give Back to Our Communities – Giving back to the communities we operate in is good for our culture and good for business. We believe in creating opportunities and employing people within our communities that represent our workforce and embody our core values. We promote positivity and goodwill within the areas where our employees live and work.

Environmental Policy

We recognize that certain business activities may have an impact on the environment. We have highly experienced environmental experts in the Company and promote awareness through education, training and involvement in order to ensure that our business is environmentally responsible. 

 

To address key issues of environmental concern and minimize environmental impact, we are committed to:

  • Conducting operations in compliance with applicable environmental laws, regulations and internal policies and procedures
  • Monitoring electricity usage, water consumption, water treatment and natural gas to address waste and inefficiencies
  • Engage in carbon offset programs to assist our industry in reducing its carbon footprint
  • Considering LEED (Leadership in Energy and Environmental Design) and similar certified facilities, when and where possible
  • Eliminating or reducing, where possible, the use of products made from unsustainable natural resources
  • Raising awareness and promote reusable materials including, where possible, recycling of plastics, cans and bottles
  • Working together with our stakeholders on activities that promote environmental protection and stewardship

Social Policy

Health & Safety

Ensuring the safety of our employees, along with our customers and all members of the communities in which we operate, is a challenging job. It is also an absolutely essential job and one that we take extremely seriously. Our Monthly Safety Committee Meetings focus on eliminating work injuries through education, training, actioning of documented safety hazards and audits related to issues such as chemical safety, equipment training, and occupational hazard prevention.

 

We strictly enforce a Code of Ethics, which applies to all employees. We have an “Open Door” Policy that encourages employees to present ideas, ask questions, and raise concerns, especially those of a legal or ethical nature,  and those relating to quality of work, directly to any level of leadership without fear of retaliation.

 

Further, we offer an Anonymous and Confidential Hotline that allows all employees to report anonymously any violation including ethical, environmental, or health and safety related.  Employees can access the hotline either by calling a toll-free number staffed by live operators (844-4VST-SAF) or through a web-based reporting portal (www.convercent.com/report).

 

Diversity, Equity & Inclusion

We are committed to maintaining an environment that encourages and fosters appropriate conduct among all persons and respect for all individuals. We believe that building a culture that is welcoming and inclusive is integral to people doing their best work and is essential to productivity and the success we can achieve as a company. We actively recruit people from diverse backgrounds to build a supportive and inclusive workplace. We take steps to ensure employees have a sense of belonging, value and opportunity.

 

Accordingly, we are committed to enforcing the Code of Ethics at all levels in order to create an environment free from discrimination, harassment, retaliation and/or sexual misconduct. Discrimination or harassment based on race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status or on any other legally prohibited basis is unlawful. Such discrimination violates our company policy and will not be tolerated. 

 

Any form of retaliation against anyone who has complained of, or formally reported, discrimination, harassment, or sexual misconduct, or has participated in an investigation of such a complaint, regardless of whether the complaint relates to the complaining person or someone else, will not be tolerated, and violates both the company’s policy and applicable law.

Community Engagement

While we work with various charities on a case-by-case basis in the local communities in which we do business, we take great pride in championing a cause in each region that the local facility is passionate about and believe will make the biggest positive impact within the local community. Our leadership team, along with employees, will contribute to the selected charity in a variety of ways throughout the year, and each year, we will evaluate the next area of opportunity.  These contributions may include company-wide events held at the local level, donation and matching opportunities and individual decisions to donate time or funding to the selected charity outside of normal work hours.

 

Our charity of choice will have a large presence locally, and in some cases, nationally. The cause will be aligned with the beliefs and mission of our company. By associating with any charity, we in no way condemn or condone political or religious views associated with the organization.

Governance Policy

Cybersecurity

We invest significant resources and constantly focus on Cybersecurity risks. As digitalization and automation dominate the transformation of the global economy, cyber risk and data protection pose ever greater challenges for businesses. We have developed and established a cybersecurity architecture to minimize the vulnerability of our data, hardware, and software and reduce our susceptibility to malicious software (malware), viruses and hacking.

Controlled Unclassified Information & Sensitive Data

Controlled Unclassified Information (CUI) is government created or owned information that requires safeguarding or dissemination controls consistent with applicable laws, regulations and government wide policies. It is not corporate intellectual property unless created for or included in requirements related to a government contract. Although CUI is not classified information, it is Sensitive Data that requires a need to know. While there are fewer controls over CUI & Sensitive Data as compared to classified or highly classified information, it is imperative that we have in place technology, processes and tools to safeguard information. Any failure to protect deemed CUI could pose a significant risk to national security, directly affecting lethality of our warfighters, and eroding our nation’s military and economic competitive advantages.

Audit, Compliance and Management Operating System

Valence ensures compliance with regulations through 3rd Party independent audits, Board Audit Committee and our internal Management Operating System.

 

Our Management Operating System is intertwined with the AS9100 accredited detailed process for how we translate strategic objectives into actions from Corporate with oversight of where the work is performed. It is an AS9100 framework by which we operate, align activities, review risk and make decisions. To govern this system, we conduct monthly Board Meetings, executive leadership team meetings, Monthly Operating Reviews and Internal/External Quality audits.

 

Valence operates in compliance with all CUI, ITAR, EAR, and FAA regulations.

AS9100 Registration

AS9100 Standard is an internationally recognized model for Quality Management Systems (QMS) derived from eight universal management principles, including a strong customer focus, leadership, the involvement of people, ensuring a process approach, a systematic approach to management, fact-based decision making, mutually beneficial supplier relations and continuous improvement. Adhering to AS9100 Standards provides a framework and a set of principles that enables Valence to consistently provide high quality services that satisfy customers and other stakeholders.  

 

We renamed this framework internally to be a Management Quality System (MQS). It provides an overview of the AS9100 Quality System to stakeholders which imparts the application of the management principles. We integrate these principles from leadership down through the organization with a risk-based approach, enabling consistent, high quality service, engaging employees in the continuous improvement of the QMS, ensuring compliance with the applicable national, state, and local laws and regulations, and fostering adherence to the requirements defined within the current Standards.

 

All members of leadership are responsible for ensuring the processes produce the expected results and for promoting customer focus throughout the Company. Further, Valence’s Vice President of Quality & Compliance is tasked with ensuring the MQS abides by the current Standards, while leadership ensures that the management system continues to be suitable, adequate and effective for our business. 

 

We conduct regularly scheduled internal audits to ensure the MQS & Business Management System is effectively implemented and maintained, and satisfies the requirements of the current Standards.

Governance & Risk Management

Valence’s board of directors considers and reviews, among other things, the strategic direction, quality of leadership and management, internal controls and operating performance. The board of directors has deep industry expertise, institutional governance experience, and other knowledge that make it well-equipped to evaluate and oversee the sustainability aspects of Valence’s long-term strategy. The board is accountable to all stakeholders.

Executive Remuneration

All individuals are a vital component of success for any organization. Remuneration policies should allow the recruitment and retention of all individuals.

 

In considering the compensation arrangements for employees, Valence is focused on the structure of total compensation and proper incentives to ensure that employee compensation is aligned with stakeholders’ interests.

 

We note that in order to hire the best individuals, it is necessary for Valence to pay at levels as necessary to compete in the market and recruit talented and successful employees. However, the existence of this effect does not justify unwarranted compensation levels for executives. It follows that where an employee has failed, his or her continuation in a role should be reviewed, and, if necessary, he or she should be removed.

Stakeholder Communication

Valence recognizes the importance of engaging and communicating with our stakeholders. Building positive relationships with stakeholders is critical to the sustainable and responsible growth of the business. We distribute various monthly and quarterly reports to our stakeholders and, at times, invite customers to attend sponsored events in an effort to better align Valence and our stakeholders with the customers’ needs. Additionally, cash, revenue and information is communicated to stakeholders on a regular basis in order for them to be able to monitor the current direction of Valence’s operations. 

Monitoring and Engagement

We continuously evaluate our ESG policies and processes to identify opportunities for expansion and improvement. Valence incorporates recommendations from the ESG officers as part of these efforts.

 

Consistent with other performance metrics, we will regularly review the ESG performance and progress made in addressing ESG initiatives with the local management teams at each of the facilities.

Training

As part of Valence’s commitment to employee learning and development, employees receive training in ESG. In addition, ESG matters are regularly discussed by the executive leadership team and board of directors. By investing in employee training, we can ensure that knowledge of and messaging on ESG integration is communicated throughout the workforce.

Reporting & Disclosures

Valence will provide timely information to stakeholders on ESG matters addressed herein and will work to foster transparency about our activities.

 

Upon request, we will seek to disclose ESG information sufficient to enable our stakeholders who have expressed an interest in ESG management to:

 

  • Assess if Valence is aligned with the shareholder’s ESG-related policies and investment beliefs
  • Assess Valence’s policies and processes for identifying ESG-related issues and risks to identify possible areas for future development
  • Understand if and how Valence influences and supports the local facilities management of ESG-related risks and pursuit of ESG-related opportunities
  • Assess Valence’s approach to managing and disclosing material incidents at all facilities

 

Stakeholders will be informed of any changes to Valence’s ESG policies and how these policies are being implemented. We will disclose actions taken, if any, to further develop our approach to managing ESG opportunities and risks.

 

We promote dialogue with our stakeholders on how we can better manage ESG issues. We work with our stakeholders to foster transparency about our ESG performance.

Responsibility

Valence aims to improve our commitment to ESG issues on a continuous basis. Our leadership team will review and seek to expand our ESG policy and processes periodically.

 

If you have any comments and suggestions on the policy, please do not hesitate to contact Valence’s Vice President of Human Resources at [email protected]

Valence combines the technical expertise, responsive customer service, and solutions oriented resources of an entrepreneurial business, with the scale, capital resources and professionalism of a larger company.

Valence… THE ANSWER to the long-standing Aerospace Industry challenges of an overly complex and highly inefficient supply chain, driven by supplier fragmentation, restricted capital access, lack of innovation and lackluster environmental stewardship.

Valence is the Future

Before Valence

Fragmented, Risky, and Inefficient Market

Undercapitalized, Capacity Constrained

Lack of Innovation, Resistant to Change

Marginal Safety and Environmental Compliance

After Valence

Single Partner, Highly Efficient, Full Service Solutions

Significant Capital Deployed, Dramatic Increase in Capacity

Technical Leadership + Significant Investments in Latest Solutions

Significant Investment in Best-in-Class Safety, Environmental, and Compliance Solutions

Over the Last Decade

Over the last decade, the industry challenges have accelerated with the introduction of new technologies such as carbon fiber aircraft, followed by record backlogs, rate readiness constraints and today, a newly identified need – volume productivity and efficiency.  As production rates continue to rise, companies must address rate readiness for the rapidly rising aircraft build rates and simultaneously focus on volume driven productivity gains to reduce costs.  Unfortunately, most product finishing companies are not ready for this rapid shift and have struggled to make necessary technology and capacity investments to support their customers’ needs.

Valence is the clear exception.  As the world’s largest, independent aerospace product finishing company we have:

         We focus on ease of doing business by offering a collaborative, solutions-oriented culture focused on the highest level of quality and customer service

         We remain intensely focused on our core competencies and centers of excellence approach to offer the most comprehensive set of special processing cabilities and most 

         We simplify things for our customers by using a common, best-in-class quality management system to ensure performance, reduce risk and apply best practices across the enterprise.

         We invest in capacity expansions, greenfield facility builds, new technologies and capabilities within our existing locations to ensure we stay at the forefront of the aerospace industry’s product finishing needs.

 

We have never been more prepared to meet the aerospace industries rate-readiness and productivity requirements. Let us work in partnership with you to drive uncompromising quality, unmatched delivery and unparalleled business performance for your supply chain.