dupont the business benefits of sustainable...
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DuPontThe Business Benefits of Sustainable Growth
Barbara Pederson
March 17, 2003
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DuPontThe Miracles of Science
DuPont is a science company. We bring science to the marketplace in ways that benefit
people and generate value for our shareholders.
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About DuPont• 200 Years Old in 2002
• $25 Billion Revenue/$1.6 Billion R&D
• 79,000 Employees
• Presence in 70 countries including 135 plants and 80 research and development laboratories
• 2,000 Trademarks and Brands
• Core Values - Safety & Occupational Health, Environmental Stewardship, Ethics and Treatment of People with Dignity & Respect
• Core Mission: Sustainable Growth
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New Market FocusElectronic and Communications Technologies
Performance Materials
Coating and Color Technologies
Safety and Protection
Agriculture and Nutrition
Textiles and Interiors
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1802 1900 2000 2100
BirthBirth
GrowthGrowth
MaturityMaturity
BirthBirth
GrowthGrowth
MaturityMaturity
BirthBirth
GrowthGrowth
MaturityMaturity
ExplosivesExplosives
ChemistryEnergy
ChemistryEnergy
Chemistry, Biology. . .Knowledge -Intensive Solutions
Chemistry, Biology. . .Knowledge -Intensive Solutions
Major Transitions
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DuPont is committed toSustainable Growth -
Creating Shareholder and Societal Value while decreasing our Environmental Footprint …. along the Value Chain
“environmental footprint” = injuries, illnesses, incidents, waste & emissions, and depletable forms of raw materials and energy
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Why Sustainable Growth?* Saves Lives, Avoids Pain, Protects The
Environment
* Enhances Reputation/Brand
* Increases Employee Morale
* Achieves Higher Productivity/Fewer Defects
* Lowers Costs
* Strengthens Customer Relationships
* Enhances Business Growth
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DuPont’s Journey
Business Integration
Public Trust
Sustainable Growth
Compliance
Value
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0
1
2
3
4
5
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70 73 76 79 82 85 88 91 94 97 00
Long Term Earnings Growth 1970-2000
Pre Tax Operation IncomeExcluding Conoco, $Billion
5.9% growth rate 7.2% growth rate9.7% growth rate
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Safety & Health World LeaderMajor Incidents >100 to 0Air Toxics (70%)Air Carcinogens (90%)Hazardous Waste (Dry) (40%)U.S. TRI “Releases” (80%)Energy FlatGHG Emissions (60%)Renewable Energy & Resources 2010 Goals
Past Decade
Footprint Reduction
Note: Production increased 30% during this period
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Lost Workday Case Rates
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DuPont’s Energy Goals
Specific 2010 Goals for DuPont:
• 25% of revenue from non-depletable resources (up from 10% today)
• Reduce GHGs by 65% (base yr: 1990)
• Total energy usage flat (base yr: 1990)
• Source 10% energy use from renewable resources in a cost competitive manner
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CEO Commitment/Felt Leadership
Integrated, Inspiring Vision& Clear Business Value
Business/LineOwnership & Accountability
Involvement/Ownership& EmployeeCommunications
Broad
TrainingFramework, & Tools
MetricsGoals &Rewards
Transformation Model
Business Integration is Key
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Key Strategies
Integrated Science
Footprint ReductionProductivity
Stakeholder Engagement
Knowledge Intensity
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Stakeholder Engagement
* Build Public Trust
* Fill “Blind Spots”
* Guide Technology Development
* Generate New Ideas
* Gain New Perspectives
* Facilitate Growth
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Key Messages* Pursue “More Noble” Purpose
* Drive to Zero Footprint
* OK to Create Shareholder Value
* Create New Partnerships
* Keep Your Core Values Out Front
* Engage Stakeholders Very Early
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SVA per LB
% of world’s people reached 1000
Knowledge Intensity
Integrated Science
Productivity
Footprint Reduction
New Business Models, Markets, Customers & Partnerships
Sustainable Growth - A Business Approach
Opportunity Space for Growth
Stakeholder Engagement
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Figure 1Key Dimensions of Shareholder Value
Tomorrow
Today
ExternalInternal
Growth Path &TrajectoryRepositioning
Cost & RiskReduction
Reputation &Legitimacy
ShareholderValue
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DuPontSustainable Value Framework
Tomorrow
Today
ExternalInternal
Strategy:Clean TechnologyFuel cells, solar cell Components, biotechnology
Strategy:Sustainability VisionScience Company25% Revenues from non-depletableresources
Strategy:Pollution PreventionGoal is Zero for all injuriesIllnesses, incidents, waste, And emissions
Strategy:Product Stewardship
‘Building a smaller footprint’
Biotechnology Advisory Panel
SustainableValue
Drivers•Pollution•Consumption•Waste
Drivers•Disruption•Clean Tech•Footprint
Drivers•Civil Society•Transparency•Connectivity
Drivers•Population
•Poverty•Inequity
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Next 10-20 Years• Accountability and Transparency
• Social Responsibility
• Stakeholder Engagement, Dialogues
• Integrated Policies - Economics, Environment, Social
• Reaching the “Poor and Excluded”
• Renewables
• “Sustainable Growth” Business Leaders
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