3M Product Sustainability (June 20, 2008)3P Program originated at 3M in 1975 Eliminate pollution at the source Save resources and money in the process Global results-to-date Over 6,800

© 3M 2008. All Rights Reserved.

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3M Product Sustainability MPCA Product Stewardship Meeting June 20, 2008

3M Overview - Doug Stang, 3M Government Affairs 3M Sustainability Program Overview - Keith Miller, EHS Operations 3M Life Cycle Management Program - Deb Kuehl, Product Stewardship and LCM3M Product Examples - Product Stewards: Anne Johnson and (Deb Kuehl) for Michele Whyle; Research & Development, Steve JosephPolicy Discussion - Doug Stang, 3M Government Affairs


Corporate OverviewDoug Stang

3M Government Affairs



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Electro and Communications

Consumer and Office

Display and Graphics

Health Care Industrial and Transportation

Safety, Security and Protection Services

Company OverviewSales: $24.5 BNet income: $4.1 BInternational sales $15.5 B (63% of company total)Companies in more than 60 countriesSales in nearly 200 countries

Over 76,000 employees 55,000+ products45 established technology platforms571 U.S. patents issued in 200745,000 issued and pending patents worldwide

Six Market Leading Businesses


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45 Core Technology PlatformsAb

Abrasives

BiBiotech

Ac Acoustics

CeCeramics

Ad Adhesives

DdDrug

Delivery

Am AdvancedMaterials

DiDisplay

An Analytical

DoDental &

Orthodontic Materials

As ApplicationSoftware

EcEnergy

Components

EmElectronicMaterials

FcFlexible

Converting & Packaging

FeFlexible

Electronics

FsFiltration,

Separation, Purification

FiFilms

ImImaging

FlFluoro-

materials

InInspection &

Measure- ment

IsIntegrated Systems &

Design

LmLight Mgmt

MdMedical

Data Mgmt

MeMetal Matrix Composites

MfMechanical Fasteners

MiMicrobial

Detection & Control

MoMolding

MrMicro-

replication

PePredictive

Engineering & Modeling

NtNano-

technology

NwNonwoven Materials

RpRadiation Processing

SeSensors

PoPorous

Materials & Membranes

PmPolymer

Melt Processing

WoWound Mgmt

VpVapor

Processing

SuSurface

Modification

SmSpecialty Materials

OpOpto-

electronics

PdParticle & Dispersion Processing

PrProcess Design & Control

PpPrecision

Processing

TtTrack and

Trace

WeAccelerated Weathering

Successful new product growth builds on uncommon connections


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Legacy of Innovation


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Technology Driving Growth

3M™ Aluminum Conductor Composite Reinforced

3M™ Vikuiti™ Display Enhancement

3M™ Littmann® Electronic Stethoscope Model 3000

3M™ Trizact™ Abrasives

Scotch® Magic™ Tape

3M™ Confirm™ Laminate with Floating Image

3M™ Prestige Series


Sustaining Our FutureKeith Miller

3M EHS Operations Manager



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3M’s sustainability policies and practices are directly linked to our six fundamental corporate values:

Act with uncompromising honesty and integrity in everything we doSatisfy our customers with innovative technology and superior quality, value and serviceProvide our investors an attractive return through sustainable, global growthRespect our social and physical environment around the worldValue and develop our employees' diverse talents, initiative andleadershipEarn the admiration of all those associated with 3M worldwide


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Sustainability Vision

3M's commitment is to actively contribute to sustainable development through environmental protection, social responsibility and economic progress.

To us that means meeting the needs of society today, while respecting the ability of future generations to meet their needs.


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Sustainability StrategiesEncompass the pursuit of customer satisfaction and commercial success within a framework of environmental, social and economic values.

Meeting society’s and 3M’s expectations for environmental improvementMeeting employee and community needs as a socially responsible companyDriving 3M’s future economic success through corporate performance initiatives


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Recognition as Environmental and Sustainability Leader

2007-08 Dow Jones Sustainability Index Sector Leader (Sector Leader since its inception in 1999)

2005-08 Energy Star Sustained Excellence Award2007 U.S. EPA Clean Air Excellence Award2006 Asian Corporate Social Responsibility Award for Environmental Excellence2005 U.S. EPA Climate Protection Award


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The Business Case for Sustainability

Risk Reduction

Operational Excellence/Increased Efficiency

Market Opportunities

Enhanced Reputation/Brand

Enhanced Employee Recruitment/Retention


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Environmental Sustainability

Reducing Our FootprintPollution Prevention PaysCorporate Environmental GoalsAddressing Climate Change

Environmental Management Systems and Stakeholder EngagementAddressing Our ProductsStandards for Suppliers


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Pollution Prevention Pays (3P)

3P Program originated at 3M in 1975Eliminate pollution at the sourceSave resources and money in the process

Global results-to-dateOver 6,800 projects recognizedOver 2.7 billion pounds of pollution preventedOver $1.2 billion saved1st year savings only

2007 Global 3P results438 projects prevented113 million pounds of pollution2.5 million metric tons of CO2-equivalent greenhouse gas emissions$91 million in savings


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Product reformulationWater-based vs. solvent-based coating

Process modificationRemoval of liner exchange process

Equipment redesignInstallation of energy efficient motors, heating, etc.

Productive use of waste materialsRecycling scrap film back into the process


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Scotch Masking Tape1st 3P project accepted in 1975New “100% solids” coating processEliminated 1100 tons of Volatile Organic Compounds (VOCs)Reduced energy consumption by 75%

High Intensity Prismatic SheetingNew low VOC processReduces process waste by over 65%Saves 11,000 BTUs of energy per square yard of product


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Reducing Our Footprint

Corporate Results since 199095% Reduction in Volatile Air Emissions (VOCs)95% Reduction in U.S. Toxic Release Inventory (TRI) Releases 57% Reduction in Waste (indexed to net sales)44% Increase in U.S. Energy Efficiency

80% increase in U.S. energy efficiency since 1973 37% increase in global energy efficiency since 1998


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Progress toward Environmental Targets for 2010

Total Waste (pounds / thousand dollars net sales)

0

5

10

15

20

25

30

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2005 2006 2007 2008 2009 2010

Waste ratio, target

Waste ratio, actual

-11.5% from baseline

VOC Emissions (pounds / thousand dollars net sales)

0.00.10.20.30.40.50.60.70.8

2005 2006 2007 2008 2009 2010

VOC ratio, target

VOC ratio, actual


25% Reduction in Volatile Organic Compounds (VOC’s) Emitted

20% Reduction in Total Waste Generated

Total Energy Usage(Btu / dollar net sales - Mfg.sites only)

0

200

400

600

800

1000

1200

2005 2006 2007 2008 2009 2010

Energy ratio, targetEnergy ratio, actual


Cumulative 3P Results(# of 3P Projects - Mfg. sites only)

0100200300400500600700800900

2006 2007 2008 2009 2010

3P cummulative goal

3P cummulative actual

20% Reduction in Energy Consumption

Complete 800 Pollution Prevention Pays (3P) Projects


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Addressing Climate Change

Global Greenhouse Gas (GHG) Inventory according to the GHG Protocol

Global GHG Target: 50% reduction in absolute GHG emissions globally (from a 1990 base year)

RESULTS: 54% reduction in 2006

U.S. EPA Climate Leaders Goal: 30% reduction in absolute GHG emissions in the U.S. from a 2002 baseline to 2007

RESULTS: 50% reduction in 2006


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Management Systems

Environmental Management SystemAll facilities must have an EMSOver 103 facilities ISO 14001 certified EMSRemaining 25 facilities to be certified (most new acquisitions)

EHS Management SystemContinuous EHS improvement processFacility/Division/Subsidiary EHS Plans EHS Scorecard (metrics)


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Life Cycle Management (LCM)

3M’s process to ensure our products address environmental, health and safety opportunities and risks throughout their life cycle

From materials acquisition and developmentthrough manufacturing and distribution to customer use and disposal/recycle

3M LCM Policy (approved in 2001) requires all new products and existing products on a prioritized basis to have LCM review

Pathway to product sustainability


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Environmental Solutions Product CatalogFeatures nearly 200 products with an environmental and/or energy advantageIncludes products that

save energy, reduce greenhouse gas emissions,are manufactured with fewer solvents,contain recycled content,made with natural materials,can be used to support L.E.E.D. certification,and much more…

Making it easier for our customers to find products that help them reach their environmental goals


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Example: Vikuiti™

All of 3M’s environmental product claims are reviewed by 3M’s Environmental Marketing Claims Committee to ensure accuracy

and consistency with 3M’s Environmental Marketing Claims Policy

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Conclusions

Environmental LeadershipBeyond Compliance/Competitive Advantage

Social ResponsibilityValues and Business Conduct

Economic SustainabilityCorporate Imperatives

All three legs of sustainability are interdependent

Life Cycle ManagementDeb Kuehl

Product Stewardship & LCM



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LCM History at 3M

Established Corporate Product

Responsibility Department

PublishedProduct

Responsibility Guidelines for Intro of New and Modified

Products

PublishedProduct

Responsibility Guidelines –Life Cycle

Model

EHS Committee Approved

Inclusion of LCM in NPI

Process

EHS Committee Approved

LCM Policy

Implementing New

Processes, Tools, and

System


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What Is Life Cycle Management at 3M?

LCM is a process for understanding and managing the environmental, health, safety, and regulatory (EHS&R) impacts and efficient use of resources in 3M products throughout their life cycle to guide responsible design, development, manufacturing, use, and disposal

Risk identification and management throughout a product’s life cycle

Identification of opportunities arising from innovative environmental, health, and safety solutions


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The Business Value of LCM

Competitive Advantage

Risk Reduction

Cost Reduction

Product Differentiation

Customer EHS Information

Government Compliance


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LCM Process

2 Global LCM Program ManagersTraining and Guidance

Develop Tools and Processes

Globally integrated business processImplemented via 3M’s New Product Introduction (NPI) system


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Life Cycle Management Policy

New Products: must undergo LCM review prior to introduction

Existing Products: Business Unit establishes process for LCM review for its existing products, on a prioritized basis


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LCM Stages

Before-customer

Material acquisition

R&D operations

Manufacturing operations

Customer-focusedUseDisposal


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Life Cycle ManagementKEY ELEMENTS

Activities within each stage of NPI processEHS information included with management review of NPI projectsExpert evaluations and studies where appropriateConsiders potential impacts and risks

3M lab, manufacturing, logisticsCustomer use Regulatory compliance: intended markets, geographiesEnd of lifePotential advantages/opportunities


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Life Cycle Management

Product Steward

3M Environmental, Health, Safety & Regulatory

Product• Environmental Science &

Assessment• Industrial Hygiene• Laboratory EHS• LCM Program Managers• Regulatory Affairs• Software Electronic & Mechanical

Safety• ToxicologyManufacturing• Energy• Environmental Operations• Ergonomics• Health Physics• Industrial Hygiene• Occupational Medicine • Safety

EHS&

R S

taffCommercialization

TeamLaboratory

Marketing

Manufacturing

Tech Service

Quality


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Summary

A superior product and a successful product launch are dependent on implementing life cycle management early70 – 80% of a products life cycle costs are determined during design*A holistic approach is needed to address all life cycle phases

* National Research Council* US Office of Technology Assessment


Vikuiti™ DBEF Optical FilmsAnne Johnson

Product Steward



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How does an “optical film” save energy?Optical Films are used in the panels of LCD Displays to improve a variety of optical properties

Improved ergonomics:• Brightness• Uniformity• Viewing angle

Energy Savings• Removing bulbs, inverters,and power supplies

How do Reflective Polarizers work?By recycling light that would otherwise be wasted.

http://solutions.3m.com/wps/portal/3M/en_US/Vikuiti1/BrandProducts/secondary/vikuititutorials/reflectivepolarizers/


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3 Diffusers

46”LCD TV

Plug Power: 348 Watts

Luminance: 400 cd/m²

2 Diffusers + DBEF

Plug Power: 265 Watts

Luminance: 400 cd/m²

83FewerWatts

Diffuser only sets consume 32% more power

Energy Savings: 46” LCD TV with a Reflective Polarizer

DBEF Efficiency Improvement

Backlight: Mean 42% (range 32-52%)TV: Mean 30% (range 23-38.5%)


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Potential Energy Savings for LCD Televisions in the USA

19 million new LCD televisions sold in the USA in 2007Potential Energy savings for new LCD televisions purchased in 2007, if all used a reflective polarizer film:

2 Billion kWh• Equal to powering 195 000 households

• Equal to taking 230 000 cars off the road in terms of CO2 reduction

*Sales projections (20”-60”+) from DisplaySearch. 1 kWh = 1.35 pounds of CO2. 26-49 watt savings per TV depending on size 12100 pounds of CO2 = 1 avg. passenger car. (EPA Emissions Calculator)8 hrs/day on 10655 kWh = Annual power for one household (US DoE).

Comparing identical TV sets- with Vikuiti™ DBEF vs 1 Diffuser Sheet


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Potential cumulative energy savings for new LCD televisions purchased between 2007-2011, if all used reflective polarizer film

43 Billion kWh• Equal to powering 4 Million households for 1 year

• Equal to taking 5.5 Million passenger cars off the road in terms of CO2 reduction

*Sales projections (20”-60”+) from DisplaySearch. 1 kWh = 1.35 pounds of CO2. 26-49 watt savings per TV depending on size 12100 pounds of CO2 = 1 avg. passenger car. (EPA Emissions Calculator)8 hrs/day on 10655 kWh = Annual power for one household (US DoE).

Comparing identical TV sets- with Vikuiti™ DBEF vs 1 Diffuser Sheet

Potential Energy Savings for LCD Televisions in the USA


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Household Appliance Energy UseIn many cases, flat screen TVs are the highest energy using

appliance in a home Lowest cost highest cost

PRODUCT ANNUAL COST32-inch picture-tube $4020-cu.-ft. refrigerator (a newer top-freezer) 50

36-inch picture-tube 50

37-inch LCD 50

40-inch LCD 55

25-cu.-ft. refrigerator (a newer side-by-side) 65

56-inch rear-projection 6542-inch plasma, 720p 70

52-inch LCD 80

50-inch plasma, 720p 8050-inch plasma, 1080p 110

Based on Department of Energy’s 2007 national average pricing for energy, 10.65 cents per kilowatt-hour.Energy Data from Consumer Reports March 2008 study, ConsumerReports.org


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Low Power Monitor - 4 Lamp to 2 Lamp

Assumptions: 1) 15000 monitors in a large company 2) 45 average weekly hours of operation 3) $0.06 /kWh (Minnesota avg. for large user 4) total kWh/yr includes both consumed energy and heat removal energy

Large Customer Benefit (15,000 monitors):


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Energy Efficient MonitorsUp to 40% Power Consumption ReductionTCO’03 ComplianceMaintain 5 Year Monitor Life Time 250 – 300 nits (typical 180 – 220 nits in actual use)700:1 – 1200:1 CRLess Mercury and Disposal CostCost Savings by lamp/power supply removalSets new China Energy StandardSets new ES V5.0 >> TCO


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Additional information

DBEF, which was created to solve a customer’s problem with brightness and energy usage of LCD displays

TV and Monitor = energy savings• Lenovo has first 2 bulb monitors on the market now

Notebook PCs and Cell Phones = extended battery time

Using a reflective polarizer can be cost neutral for the display because using the film allows bulbs to be removed


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3M Recognized by the EPA for Energy Work

“3M brought vital information and extensive TV expertise to the ENERGY STAR specification process,” an EPA spokesperson said. “3M provided invaluable assistance in the development of a new technology-neutral, on-mode specification that will save billions of kilowatt hours in the coming years, while offering U.S. consumers the very best in feature-rich, high-quality TVs.”


Twist ‘n Fill™ & Easy Scrub Flat Mop System

Deb Kuehl for Michele WhyleProduct Steward



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3M Twist ’n Fill™ System


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3M™ Twist ’n Fill™ Cleaning Chemical Management System

Easy to useSafety

MSDS's for concentrated and RTU cleaning products Tamper resistance bottle reduces exposure to concentrate Numbered and color-coded bottles for easy identification 3M Training materials provided

Cost Accurate dispensing, reduced transporation costs


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3M™ Twist ’n Fill™ Cleaning Chemical Management System

Performance No over dispensing - proper dilution - consistent performance

EHS BenefitsProducts have completed LCMsReduced environmental footprint when not transporting waterReduced packaging waste


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Packaging Waste from Twist 'n Fill™ #25 for 180 Ready-to-Use Gallons


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Twist 'n Fill™ #25 Packaging Waste Equivalent from 180 Ready-to-Use Gallons


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Environmentally Preferable Systems

3M Easy Scrub Flat Mop System


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Reduced Water and Chemical Needed for Cleaning

Flat MoppingTraditional Mopping

Environmental Benefit

5 mop buckets * 4 gallons = 20 gallons/day 1 gallon/day


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Reduced Mop DisposalFlat MoppingTraditional Mopping

Environmental Benefit

24 mops (5 days/week - 30 day life) 2 years


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Summary

Product development to provide innovative solutions to customer problemsCustomer cost savings and reduced labor costs resulted in environmental benefits


Paint Preparation System, PPS™Steve Joseph

Product Developer



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Conventional spray-gun cleaning is messy, time consuming, requires large amounts of solvent and exposes the painter to harmful fumes.


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The 3M™ PPS™ Paint Preparation System:Eliminates the need for separate mixing cups and filters Enables the spray gun to be operated in any orientation Replaces the paint reservoir on most conventional spray guns

Using the 3M PPS System: Helps improve the painters’ working environment Minimizes paint wasteReduces the use of cleaning solventsIncreases operator efficiencyHelps reduce hazardous waste disposalIs easier, faster and more economical than traditional approaches


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Numerous designs and prototypes were tested with end users and paint companies to improve efficiency and ergonomics.


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As the mixing cup is the spray gun reservoir, significant savings are realised from not having to transfer material.


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Once spraying is finished, the empty lid and liner are disposed of. Alternatively, remaining paint may be used for touching up.With no reservoir to clean, only the spray gun’s paint channel requires cleaning.


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The value and benefit of the 3M™ PPS™ System is easily highlighted via an interactive ‘Cost and Benefit Analysis’ tool.

Customer’s Name

Customer’s Name


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The 3M™ PPS™ Paint Preparation System is one of 3M Automotive Aftermarket Division’s leading products and is sold in over 60 countries.~ 60,000 shops currently using the system worldwide.Annually, nearly 20 million vehicles are repaired using the 3M system.For vehicle refinish, if the PPS System was used for all spray gun applications, savings* of cleaning solvents could exceed 10 million gallons per year.

*based on up to 70% saving vs. conventional systems

Global Impact


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The vehicle refinish market hasn’t seen anything like this for 35 years and besides changing the way our customers work, it is also changing the basis of competition.

The 3M PPS System is becoming a standard in the industry. It is helping redefine the way in which paint is mixed and filtered, and how spray guns are cleaned.Other market segments where spray guns are used are also rapidly adopting the 3M PPS System.The 3M PPS System allows our customers to not only reduce their consumption of paint, cleaning solvents and mixing materials, but also to reduce costs, and save time.In 2007, awarded Environmental Excellence in Transportation Award by the Society of Automotive Engineers.

3M has developed a truly innovative product in the form of the 3M™ PPS™ Paint Preparation System


Policy DiscussionDoug Stang

3M Government Affairs



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Society’s Expectations Have ChangedHISTORICALLY CURRENTLY

Emissions Total product EHS footprintAcute toxicity Chronic toxicityGovernment regulators drive controls

Customers, NGOs and media

Regulations ban substances

Expanding country, regional regulations

US & Europe Asia

GREATER EXPECTATIONS FOR EHS STEWARDSHIP


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Policy Discussion PointsFocus on research and development for the most impactCustomer's drive EHS solutionsSystemic approach to product sustainability versus:

State by StateProduct by productChemical by chemical

Incentives, training and assistance to small and medium size companies to implement full LCMsPartner with industryRewards versus penalties for companies going beyond compliance

Documents

3M Product Sustainability (June 20, 2008)3P Program originated at 3M in 1975 Eliminate pollution at the source Save resources and money in the process Global results-to-date Over 6,800