Sustainable Business andSafer Chemistry Through the Supply ChainHow SC Johnson Uses GreenlistTo Reduce Our Environmental FootprintInnovators RoundtableNovember 14-16, 2005Darden School of Business

Provides environmental leadership throughout the supply chain

Establishes comparative criteria that measure environmental and biological impact

Four Environmental Classification Levels (EC values) for our raw materials and packaging

Greenlist - Reducing ourenvironmental footprintGreenlist is not a list of chemicals

Original focus on 6 categories (80% of kg volume) - Surfactants- Solvents- Propellants - Insecticides- Resins- Packaging

4 7 unique criteria for each category - Meaningful - Discriminating - Readily available - Other sig. concerns

Each raw material or component gets a score - 3 (Best) - 2 (Better) - 1 (Acceptable) - 0 (Restricted Use Material - RUM)

Greenlist - Reducing ourenvironmental footprintHow the Greenlist Works

Presence moves material down one classPBT/POP (EPA Classifications)Endocrine disruptorsCarcinogenicity (IARC, Proposition 65, EU Category II)Reproductive toxicity (Proposition 65)Other chemicals of concern listsBanned in one or more countries where SC Johnson markets products.Unofficial bans (trade, associations)Greenlist - Reducing ourenvironmental footprintOther Significant Concerns

Greenlist - Reducing ourenvironmental footprint

Partnering with Suppliers to GreenThe Supply ChainThere are numerous ways to partner on Greening the supply chain.

1. Identify raw material that need replacements

2. Sharing raw material criteria with supplier

3. Requesting Environmentally Responsible replacements for specific chemical.

4. Partnering on projects to develop superior products with a better environmental/health profile

Dow Chemical A Unique and Innovative Supplier Wide range of Raw MaterialsPlastics SolventsBiocides SurfactantsChelants Polymers Global SupplierRaw materials are available at all our manufacturing sites Extensive R&D and EH&S ResourcesDevelopment of new materials for customersToxicity and Environmental data and testing of materials Extensive Technical Service Resources Partnership on numerous projectsHigh through-put capabilities to screen and identify alternativesTotal Solutions to meet cost/performance criteriaProduct Alternatives to address EH&S concerns

Challenges of Commercializing New Environmentally Responsible Raw Materials First the performance and cost parameters need to be defined!

Can a supplier find or design a replacement that is equivalent or better in performance at a similar cost structure.

If a substitute is Identified Does it have equal performance?Is it a commercial product?If not commercial, what is the cost to commercialize?

*The Greenlist Process reduces the environmental impact of raw materials we use in our products.

SCJ as a chooser of chemicals must rely on our suppliers to partner with us to identify raw materials that have better environmental profiles.

The Greenlist Process has produced products that are better for the environment, good for our consumers, and good for business. The Greenlist process is helping SC Johnson build a sustainable future.

SUMMARY