SUSTAINABILITY DEFINITION

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Presentation transcript:

SUSTAINABILITY DEFINITION 1 1 1

SUSTAINABILITY Why is it important to Ecolab and our customers? It’s the right thing to do Consumers are demanding and expecting it It’s good for business Optimizing net impact by: Increasing efficiency Minimizing consumption of natural resources Reducing operating costs Increasing safety It drives innovation Operating as a sustainable business is the right thing to do – and it’s also a sound business strategy. Some companies worry that being sustainable is going to be expensive – but if you do it right, it will have a positive impact on your bottom line. 2 2 2 2

Source: Aberdeen Group, May 2009 BEST IN CLASS COMPANIES... 90% of business decision makers consider sustainability and environmental responsibility to have some importance to their business Source: poll conducted by Ipsos Public Affairs View sustainability as a “must have” strategy for long-term business viability and success Outperformed their peers by 18%-20% in 2008 Achieve 6%-10% reductions in a variety of operating costs Showed a 16% increase in customer retention Source: Aberdeen Group, May 2009 3 3 3

THEY CONSISTENTLY INVEST IN SIX AREAS Given this dynamic among our competitors, I think it’s valuable to look at who are the “best in class” companies who are getting it right. It’s important to remember that in Sustainability all companies, including Ecolab and regardless of size, are judged by governments, NGOs, general public. These companies are Best in Class across all areas. Even if we are much smaller than these consumer companies, we compete in the same space. I should also mention that these companies, with the exception of P&G, are our customers, so that it behooves us to be a best in class partner – or open the door to P&G here. Also mention that all of these companies are profitable – indicating Sustainability is not bankrupting them, as some have argued. JD is competing in these areas too – all except Branded initiatives Takeaways: We’re the middle of the pack. Competition / Best in Class doesn’t care about end user. -Coke recognizes a shift in culture is also needed – can’t just be about processes alone Coke (from 2008 Sustainability report): “Sustainability is a significant driver of value that offers meaningful long-term benefits for our business and society. ..we are now defining our objective as “accelerating sustainable growth to operate in tomorrow’s world.” a result, we now include sustainability among the key criteria by which we evaluate our business plans and performance. We assess how we are improving our earnings and our competitive position, as well as how we are strengthening the sustainability of our business practices. [To achieve this, we are realigning our business model to match the interests of our business, society and environment, both in the short and long term. We are providing tools, training and planning for our associates and our business to make us more productive, efficient and effective. We are assessing everything—from our operations and our processes to how we work with partners and market our products—to see where we can build better, more effective systems and improve our overall productivity, so our business can continue to grow.” p. 6] 4 4 4 4

COMMITTED TO A COMPREHENSIVE APPROACH Economic Progress: Investing in R&D to create innovative, effective products and services; helping our customers’ businesses be successful; employing people around the world Environmental Stewardship: Optimizing our net impact by increasing safety reducing energy and water consumption, and reducing waste – in our own operations and for our customers Social Responsibility: Fair and ethical business conduct and support of our associates, communities and business partners 5 5 5

ECONOMIC PROGRESS Our commitment to exceed our customers’ needs helps us achieve sustainable, profitable growth Ecolab provides innovative and effective solutions that help our customers prosper and grow Investing in research and development to create the best solutions at the best value Delivering effective results at the lowest total cost and impact environmentally Contributing financial investments that increase the long-term vitality of our communities We invest in our people, equipping them with the tools, technology and training they need while providing opportunities for personal growth and development Ecolab takes our responsibility to the communities we serve seriously. We promote the well-being of our associates, our customers and our customers’ customers by contributing to programs and initiatives that enhance quality of life in the communities in which we work and live. 6

ENVIRONMENTAL STEWARDSHIP Creating solutions to maximize product and environmental performance Developing products and services that optimize our customers’ water and energy use, with innovative packaging and dispensing methods that reduce waste We use environmentally responsible and sustainable energy sources and invest in improving energy efficiency in our own and our customers’ operations Minimizing emissions, effluents and waste caused by our operations and dispose of all wastes through safe and responsible methods We review the safety, environmental, and regulatory attributes of raw materials and make environmental sustainability a key requirement in the selection of ingredients for new products and services Ecolab takes our responsibility to the communities we serve seriously. We promote the well-being of our associates, our customers and our customers’ customers by contributing to programs and initiatives that enhance quality of life in the communities in which we work and live. 7 7

SOCIAL RESPONSIBILITY Contributing to the vitality of our communities and the global economy Ecolab promotes the well-being of associates, customers and shareholders by contributing to the quality of life in the communities in which we operate Our Ethical Sourcing and Environmental Standards require our strategic suppliers to protect the health, safety and human rights of their workers and report on environmental stewardship For more than 20 years, the Ecolab Foundation has been making financial contributions to our communities, including donating $2.3 million worth of groceries to local food shelves We encourage and support community involvement among our associates Ecolab takes our responsibility to the communities we serve seriously. We promote the well-being of our associates, our customers and our customers’ customers by contributing to programs and initiatives that enhance quality of life in the communities in which we work and live. 8 8