1. Kieran Callahan Business Development Manager UL i&i Sustainability Report Cards What’s Hot & What’s Not?

2. 1.Introduction – UL / UL Information & Insights 2.What’s Driving Compliance Requests 3.What’s Driving Sustainability Data Calls 4.Risks for Retailers & Brands 5.Sustainability Examples 6.QA AGENDA 2

3. UL OVERVIEW 3 The definition of safety is changing. So is UL. Mission Working for a safer world since 1894 is at the core of everything we do.

4. 4 UL Vision the ability to find, connect & analyze information, supported by expertise and science, to enable innovative, compliant and sustainable supply chains better decisions in less time technology science expertise other sustainability performance environmentalregulatory THE DATA FOUNDATION (public, exclusive, secure) THE i&i DIFFERENCE (UL values) THE VALUE TO CLIENTS ( + revenue // - costs)

5. What’s Driving Score Cards 5

6. Enormous Pressure in Industry Retailers are the ultimate pinch point for NGO campaigns, but they are also under pressure to cut cost and increase sales. RETAILER PRESSURES Big Brands are driving their own sustainability programs and reacting to retail sustainability programs BRAND LEVEL PRESSURES Questionnaires being driven from the top down the supply chain making it difficult and costly to respond to data requests. SUPPLY CHAIN PRESSURES … will this go away? 6

7. Pressure on Retail / Brands / Supply Chains Retailers are the ultimate pinch point for NGO campaigns, but they are also under pressure to cut cost and increase sales. COMPLIANCE Brands are driving their own sustainability programs and reacting to retail sustainability programs SUSTAINABILITY … will this go away? 7

8. Compliance 8

9. COMPLIANCE PRESSURE // CHALLENGE Tens of thousands of Products containing chemicals Adhesives, Cleaners, Paints, Aerosols, OTC etc. Increasing and Changing chemical-based regulations Federal Transportation Requirements (Ground, Air, Vessel) RCRA (Resource Conservation and Recovery Act) State Laws that go beyond RCRA (California, Texas, Rhode Island, Vermont, Washington etc.) VOC Regs / State Restrictions / Fire Code Critical/Validated Data is Needed to support Business Objectives Compliance Objectives Sustainability Goals 9

10. CALIFORNIA ENFORCEMENT Regulators in California alone have obtained over $160 million in settlements from retailers since 2007. Jan 2015Safeway$9,870,000 Dec 201499 Cents Only Stores$2,362,500 Sept 2014TJ Maxx, Marshalls, Home-Goods$2,777,500 Aug 2014Raley’s$1,599,000 June 2014Albertsons$3,287,000 April 2014Lowes$18,100,000 Sept 2013Rite Aid$12,324,000 Dec 2012Walgreens$16,575,000 April 2012CVS$13,750,000 Feb 2011Target$22,500,000 May 2010Walmart$27,600,000 May 2009Kmart$8,650,000 Oct 2007Home Depot$9,900,000 10

11. Waste Disposal Challenges? Yes or No? California Connecticut Michigan Washington YES! California Connecticut Maine Michigan Minnesota New Hampshire Oregon Rhode Island Vermont Washington YES! California Washington YES! Yes RCRA Federal Waste Corrosive - Hazardous waste in ALL 50 STATES

12. THE RETAILER DATA GAP CHEMICAL COMPLIANCE & SUSTAINABILITY CHALLENGES REQUIRES YOU TO GET ADDITIONAL DATA FROM YOUR SUPPLIER BASE… (M)SDSs – never meant to support these business needs! Original purpose – OSHA compliance Supplier Mindset Minimal Disclosure / Missing Data Different interpretations/biases by manufacturers of (M)SDS Complete Transportation data missing “Dispose in accordance with local regulations” Uniform Fire Code Missing (Disposal and Storage) RETAILER - rely on supplier (M)SDSs for critical regulatory compliance, waste, logistics, EHS, & transportation information. The best prepared (M)SDSs DO NOT communicate all data required by Retailers 12

13. 700,000 UPC 8000 Suppliers Product Registrations Ingredient Data 2 Business Days Storage, Shipping, Hazard Waste, Restriction, Reports, Custom Data, Safety Data & Documents WERCSmart™ Web Portal 24/7/365 Access THE WERCS PROCESS WERCSmart Platform 13

14. Participating Retailers 14 40+ Today A&P Ahold USA Albertsons Amazon Bed Bath and Beyond Costco CVS Delhaize America Dick’s Sporting Goods Dollar General Dollar Tree Stores Family Dollar Genuine Parts Co The Home Depot HD Supply Hy-Vee Kroger Lowes Meijer McLane New Egg Office Depot O'Reilly Petco Rite Aid Radio Shack Safeway Sears Save Mart Supermarkets Smart & Final Staples Supervalu Target Canada Target TopCo Tractor Supply Company United Stationers Wal-Mart/Sam’s Club Winco Foods 99 Cent Only WERCSmart Platform

15. DOTOSHANFPAEPAState/LocalGreen Demand SAFETYTRANSPORTSTORAGEHAZ WASTELEGALCONSUMER Stores Dist. Ctr Stores Dist. Ctr Customers Waste hauler Reverse logistics Supplier Dist. Ctr Stores Local Fire Marshall Reverse logistics Waste hauler Stores Dist. Ctr Stores locations Dist. Ctr Waste hauler Reverse logistics Stores Consumer Share holder REGULATORY EXPOSURE AND CONCERNS AREAS OF IMPACT DATA CHALLENGES Green Washing Lack of Data Proof Selling Restrictions Monitoring Regulations RCRA Codes STATE Codes Bucket Code Uniform Fire Code Slotting Data Chemical Inventory All Modes Placarding Data Electronic SDS Access 15

16. Sustainability 16

17. Reasons for Rapid Expansion of Sustainability Programs Sustainability Makes Business Sense – Save Money Globalization of Supply Chains & Legislative Failure Advocacy Campaigns by NGO’s ( Newspaper Test) Social Media & Rapid Spread of Information Brand Building & Increased Sales Opportunities Consumer Demand for Transparency ( Safe Products) 17

18. SuppliersOEMs & BrandsRetailersConsumers S upply chains need to share data and collaborate to deliver products that not only comply with regulations, but are also healthier, more sustainable, and more profitable. Welcome to the Demand Chain The Demand Chain

19. Sustainability Demand Chain that drives market requirements for better consumer products down the supply chain, opening up new business opportunities at every level. Reduce Risks Improve Vendor Relations Support Programs Grow Sales Reduce Costs Increase Transparency Sustainability Benefits

20. Benefits ‣ Real-time Search and Filtering of Product Data ‣ Product, Component, Ingredient, and Material tracking ‣ Respond Quickly to Regulators, NGOs, and Consumers ‣ Dashboards for Decisions Reduce Risks Risk

21. Benefits ‣ Educate Vendors About Data Needs ‣ Create Transparency and Trust around Confidential Business Information ‣ Help Improve Products in Response to Retailer Criteria ‣ Respond to Rapidly Emerging Issues Around the World Improve Vendor Relations Vendor Collaboration & Innovation

22. Benefits ‣ Proactively Screen Product Data ‣ Avoid Fines ‣ Reduce Litigation Costs ‣ Reduce Labor Required for Data Entry and Management Reduce Costs Cost Reduction

23. Benefits ‣ Implement Sustainable Product Standards ‣ Comprehensive Product and Company Screening ‣ Incorporate Custom Definitions of “Healthier” and “Sustainable” Products Support Sustainability Programs Meeting Business Objectives

24. Benefits ‣ Put a Retailer on a Path to Being a Leader in Sustainable and Healthy Products ‣ Develop a Product Set and Tools To Help Consumers Find Healthy Products ‣ Integrate Regulatory and Sustainability Processes into Core Business Operations ‣ Gain Real Intelligence from Data Grow Sales Increase Sales - Sustainable Products

25. Decision Support for Retailers, Manufacturers, Brands and Consumers that Opens Opportunities across the full Value Chain. Retailer Support Product Design Support Consumer Insights Material Supplier Support

26. Examples of Sustainability In Action with Brands you know. Sustainability Examples

27. Target Sustainable Product Standard ‣ Designed to Help Target Buyers Screen Products for Comprehensive Sustainability Concerns ‣ Turning Sustainability Policies into Action ‣ Transparency, Ingredients, Packaging, Water Impacts, etc. ‣ Vendors Representing 7,500 Products in Household Cleaners, Personal Care, and Baby Care Target

28. Walmart Driving for Cost Reduction ‣ Walmart has been a clear leader in the development of the Sustainability Consortium. ‣ Tracking Company Level Sustainability Goals and Objectives ‣ Moved to a High Priority List of Chemicals and a Priority List of Chemicals. ‣ Better Management of Supply Chains ‣ Big Data, Collected a Ton of data ‣ Primary Driver is Save Money – Live Better Walmart

29. Walmart Scoring / High Priority Chemicals

30. Method ‣ Manage Sustainability data for the product catalog ‣ Tools for Product Designers to Compare and Select Materials ‣ Make Life-Cycle Thinking Accessible for Designers Method

33. Consumer Pressure – Consumer Apps ‣ Publicly Available Ingredient Data (from GoodGuide) ‣ Permission-Based Supplier- Disclosed Ingredient (from PurView) ‣ View Against Available Regulatory Lists or Sustainability Profiles ‣ Consumer Insights

34. Questions 34