MARCH 13, 2012 CMEDI CORPORATE SESSION Establishing goals Driving Supplier Diversity goals through the enterprise/organization Identifying opportunities Rewarding/incenting buyers

SAMPLE GOAL SETTING WORKSHEET Process started in August each year – Completed by October Back-up information to supplier level provided with worksheet SD Leadership Team responsible for working with internal stakeholders to set SD Team held option to push back Minimum 10% increase strongly encouraged Final review and approval by CPO

DRIVING GOALS Exec commitment, Policy, 3 Year Strategy PPG VP Award -All buyers – full day SD training - High percentage of GP Scorecard Training – 1 day for all; going forward included in SMP refresh training Pipeline - Pipeline established - Sustainability Plan established 3 years out Sustainability Plan by Team Results Reported Monthly - SD part of annual Procurement/Stakeholder negotiations - Results reported 5 th day of each month Part of Procurement/ Stakeholder Agreement

DRIVING FROM THE TOP DOWN 4 Corporate Policy XX– Supplier Diversity Executive Committee Supplier Diversity Commitment 4

TRAINING – DESIGNING SUPPLIER DIVERSITY INTO PROCUREMENT PROCESS Strategy Implementation and Improve Specification Management STAGE I DEFINE STAGE II GATHER/ANALY ZE STAGE III STRATEGY CREATION STAGE IV STRATEGY IMPLEMENT STAGE V SUPPLIER MANAGEMENT STAGE V SUPPLIER MANAGEMENT Determine business needs Condition stakeholders Research market potential-diverse suppliers Discuss diverse supplier opportunity with SMP team Identify constraints and restrictions Identify all potential suppliers -AQSCI Examine selection criteria to avoid bias Follow up with diverse suppliers to encourage participation Clearly defined metrics and evaluation criteria Require non diverse suppliers to be inclusive Negotiate aggressively with diverse suppliers Structured reviews Leverage internal and external resources Business partner participation and feedback on performance Supplier feedback on process Clear requirements Marketplace Drivers SMP team and stakeholders conditioned to include diversity SD team engaged to identify qualified diverse suppliers MWBE options identified AQSCI evaluation criteria examined SMP team aligned with diversity strategy Clearly defined inclusive sourcing options Aligned metrics/ Project Plan Identified savings targets Tier 1 or Tier 2 plans in place Scheduled SMP team and Supplier reviews Joint score cards Improvement plans Contract monitoring Apply LRIG sourcing evaluation Evaluate 1 st tier/ 2 nd tier sourcing opportunities Evaluate creative approaches i.e. supplier partnerships, carve-outs, JV’s, SA’s Activities Results

PIPELINE EXAMPLE

INCENTIVES 11% of bonusSpot Awards Conferences/ Meal Tickets Letters to Management VP Award $5k

ENSURING SUSTAINED RESULTS Each procurement category responsible to establish sustainability/growth plan for diverse suppliers representing 90% of spend. (Most categories had no more than 8 suppliers to develop plans for.) Mentoring Training Introduction to primes for SA/JV Monitored by SD Team and SD Leadership Team Reviewed by CPO and President