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Sustainable Development

Lee A. DeHihns IIILee A. DeHihns III

Alston & Bird, LLPAlston & Bird, LLP

White Paper 2009White Paper 2009

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LEARNING OBJECTIVES

Provide a historical perspectiveabout sustainability

Present case studies of keycorporations

Discuss resources and futuretrends

1972 … 1987 1992 1997 1999 2002 … TOMORROW

STOCKHOLMCONFERENCEDeclaration on

the HumanEnvironment

Historical Perspective

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RIO/BRAZIL

U.N. CONFERENCEON ENVIRONMENT& DEVELOPMENT

World BusinessCouncil forSustainable

Development(WBCSD)

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World Business Council forWorld Business Council forSustainable DevelopmentSustainable Development

(WBCSD)(WBCSD)

The WBCSD is a council of 200 leading globalcorporations with a market capitalization of $7Trillion+

The group’s President Bjorn Stigson said at theirannual meeting in Johannesburg in Nov 2008:“The companies in our membership are innovative andwell-managed partly because of their commitment tosustainable development. They are also the frontrunners in understanding the business benefits derivedfrom innovative energy and environmentalapproaches.”

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World Business Council SustainableWorld Business Council SustainableDevelopment (WBCSD)Development (WBCSD)

It provides a platform for companies to exploresustainable development, share knowledge,experiences and best practices, and to advocatebusiness positions on these issues in a variety offorums, working with governments, non-governmental and intergovernmentalorganizations.

Members are drawn from more than 35countries and 20 major industrial sectors. TheCouncil also benefits from a global network ofabout 55 national and regional businesscouncils and regional partners

FutureTrends

STOCKHOLMCONFERENCEDeclaration on

the HumanEnvironment

Dow JonesSustainability

Indexes

Historical Perspective

JOHANNESBURGDeclaration on

SustainableDevelopment

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RIO/BRAZIL

U.N. CONFERENCEON ENVIRONMENT& DEVELOPMENT

1972 … 1987 1992 1997 1999 2002 … TOMORROW

KyotoProtocol

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Dow Jones Sustainability IndexesDow Jones Sustainability Indexes

Launched in 1999, the Dow Jones SustainabilityIndexes are the first global indexes tracking thefinancial performance of the leading sustainability-driven companies worldwide in terms of corporatesustainability. Based on the cooperation of DowJones Indexes, STOXX Limited and SAM, theyprovide asset managers with reliable and objectivebenchmarks to manage sustainability portfolios.

All indexes of the DJSI family are assessedaccording to the same Corporate SustainabilityAssessment and respective criteria.

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DJSI GLOBAL SUPERSECTOR LEADERSDJSI GLOBAL SUPERSECTOR LEADERS2008/20092008/2009

Automobiles & Parts Banks Basic Resources Chemicals Construction & Materials Financial Services Food & Beverage Health Care Industrial Goods & Services Insurance Media Oil & Gas Personal & Household Goods Real Estate Retail Technology Telecommunications Travel & Leisure Utilities

BMW -Germany Australia & NZ Banking Group Xstrata Plc -UK BASF SE - Germany Holcim -Switzerland Itausa-Investimentos - Brazil Unilever - Netherlands Novartis AG - Switzerland TNT N.V. - Netherlands Swiss Re - Switzerland Pearson Plc. - UK ENI - Italy Adidas AG - Germany Land Securities Group PLC - UK Kingfisher Plc - UK Intel Corp. - USA BT Group Plc -UK Air France-KLM - France Grupo Iberdrola -Spain

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LEARNING OBJECTIVES

Provide a historical perspectiveabout sustainability

Present case studies of keycorporations

Discuss resources, strategicimplications and future trends

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A Case StudyA Case Study

BASFBASF BASF is the leading chemical company in the most

important sustainability index - the Dow JonesSustainability Index (DJSI World).

BASF shares were included in the DJSI World for theeighth year in succession in 2008. The companiesincluded in the DJSI-World are selected out of all2,500 members of the Dow Jones Global Index on thebasis of sustainability criteria … only the top 10 % ineach industry group are selected.

BASF was recognized for its climate strategy, itsenvironmental and social reporting and fordeveloping innovative and eco-efficient products.

A Case StudyA Case Study

Newmont MiningNewmont Mining

Jan 2009

“Even at showcase mines, such asNewmont Mining Corporation's BatuHijau operation in easternIndonesia, where $600 million hasbeen spent to mitigate theenvironmental impact, there is noavoiding the brutal calculus of goldmining. Extracting a single ounce ofgold there—the amount in a typicalwedding ring—requires the removalof more than 250 tons of rock andore.”

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A Case StudyIBMIBM

Sam Palmisano, IBM Chairman and CEO, told theCouncil on Foreign Relations in November 2008:

“We are all now connected – environmentally, technically andsocially. But we are also learning that being connected is notsufficient. Yes, the world continues to get flatter and yes, itcontinues to get smaller and more interconnected. Butsomething is happening that holds even greater potential. In aword, our planet is becoming smarter.”

He concluded his speech by saying: “The world now beckoningus is one of enormous promise. And I believe it is one we canbuild – if we open our minds and let ourselves think about allthat a smarter planet could be.”

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A Case StudyA Case StudyWalWal--MartMart

At the China Sustainability Summit in Beijing inOct. 2008, Wal-Mart CEO Leo Scott said:

“Sustainability in our operations and supply chain -selling and making products in an efficient, sociallyresponsible way - will be essential to meeting theexpectations in the future.”

“For us, sustainability is about building a better business.It is about making a positive difference in people’s livesand their communities. And it is about staying out infront of the changes that will take place in world not justnext month or next year, but for decades to come.”

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KPMG Sustainability ReportKPMG Sustainability Report

In October 2008, KPMG released in firstsustainability report since 2005 and concludedthat: Twice as many companies publicly released sustainability

data on their environmental, social and governanceinformation in 2008 compared with 2005.

Ethics outweighed economics for the first time as theprimary reason for such disclosures.

The report looked at information from the top 100U.S. companies by revenue: 74% released corporate responsibility information. Of the Global Fortune 250, 80% released corporate

responsibility information.

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LEARNING OBJECTIVES

Provide a historical perspectiveabout sustainability

Present case studies of keycorporations

Discuss resources and futuretrends

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Cut Emissions, Cut CostsReduce your company's global warming impacts and improve your business by building climate action into your strategy.

ResourcesResources

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ResourcesResources

Businesses/Forums: Environmental Defense Fund’s Innovation Exchange,

LOHAS, SOL Sustainability Consortium, CERES,Businesses for Social Responsibility, Consulting Firms,Stakeholders (Investors, Vendor/Partners, etc.)

Universities: Emory University (Office of Sustainability Initiatives),

University of Michigan (Erb Institute for GlobalSustainable Enterprise), Arizona State (Global Instituteof Sustainability), KSU (Director of Sustainability)

Future TrendsFuture Trends LeadershipLeadership

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APPENDIXAPPENDIX

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1972 Stockholm Conference1972 Stockholm Conference ––

Declaration on the Human Environment

Principle 1: Man is both creature and molder of hisenvironment, which gives him physical sustenance andaffords him the opportunity for intellectual, moral, social andspiritual growth. In the long and tortuous evolution of thehuman race on this planet a stage has been reached when,through the rapid acceleration of science and technology, manhas acquired the power to transform his environment incountless ways and on an unprecedented scale.

Principle 3: Man has constantly to sum up experienceand go on discovering, inventing, creating and advancing. Inour time man's capability to transform his surroundings, ifused wisely, can bring to all peoples the benefits ofdevelopment and the opportunity to enhance the quality oflife. Wrongly or heedlessly applied, the same power can doincalculable harm to human beings and the humanenvironment.

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1972 Stockholm Conference1972 Stockholm Conference ––

Declaration on the Human Environment

Principle 6: A point has been reached in history when we must shapeour actions throughout the world with a more prudent care for theirenvironmental consequences. Through ignorance or indifference we can domassive and irreversible harm to the earthly environment on which our lifeand well-being depend. Conversely, through fuller knowledge and wiseraction, we can achieve for ourselves and our prosperity a better life in anenvironment more in keeping with human needs and hopes. To defend andimprove the human environment for present and future generations hasbecome an imperative goal for mankind-a goal to be pursued together with,and in harmony with, the established and fundamental goals of peace and ofworld-wide economic and social development.

Principle 11: The environmental policies of all States should enhanceand not adversely affect the present or future development potential ofdeveloping countries, nor should they hamper the attainment of better livingconditions for all, and appropriate steps should be taken by States andinternational organizations with a view to reaching agreement on meeting thepossible national and international economic consequences resulting from theapplication of environmental measures.

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Report of the World Commission on EnvironmentReport of the World Commission on Environmentand Development:and Development: ““Our Common FutureOur Common Future””

(Brundtland 1987)(Brundtland 1987)

1. Sustainable development is development that meets the needsof the present without compromising the ability of futuregenerations to meet their own needs. It contains within it twokey concepts: the concept of ‘needs’, in particular the essential needs of

the world’s poor, to which overriding priority should begiven; and

the idea of limitations imposed by the state of technologyand social organization on the environment’s ability to meetpresent and future needs.

4. The satisfaction of human needs and aspirations is the majorobjective of development. The essential needs of vast numbers ofpeople in developing countries for food, clothing, shelter, jobs -are not being met, and beyond their basic needs these peoplehave legitimate aspirations for an improved quality of life. Aworld in which poverty and inequity are endemic will always beprone to ecological and other crises. Sustainable developmentrequires meeting the basic needs of all and extending to all theopportunity to satisfy their aspirations for a better life.

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1992 UNITED NATIONS CONFERENCE ON1992 UNITED NATIONS CONFERENCE ONENVIRONMENT AND DEVELOPMENTENVIRONMENT AND DEVELOPMENT

((““Rio ConferenceRio Conference””))

Charged by the UN General Assembly to“elaborate strategies . . . to promotesustainable and environmentally sounddevelopment in all countries.”

Principle 1: Human beings are at the center of concerns forsustainable development. They are entitled to a healthy andproductive life in harmony with nature.

Principle 3: The right to development must be fulfilled so as toequitably meet developmental and environmental needs of presentand future generations.

Principle 4: In order to achieve sustainable development,environmental protection shall constitute an integral part of thedevelopment process and cannot be considered in isolation from it.

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1992 UNITED NATIONS CONFERENCE ON1992 UNITED NATIONS CONFERENCE ONENVIRONMENT AND DEVELOPMENTENVIRONMENT AND DEVELOPMENT

(Rio)(Rio)

Principle 1: Human beings are at the center of concerns forsustainable development. They are entitled to a healthy andproductive life in harmony with nature.

Principle 3: The right to development must be fulfilled so as toequitably meet developmental and environmental needs ofpresent and future generations.

Principle 4: In order to achieve sustainable development,environmental protection shall constitute an integral part of thedevelopment process and cannot be considered in isolation fromit.

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“Development that meets theneeds of the present withoutcompromising the ability offuture generations to meet theirown needs”

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2002 Johannesburg Declaration2002 Johannesburg Declarationon Sustainable Developmenton Sustainable Development

Principle 18: We welcome the focus of the Johannesburg Summit on theindivisibility of human dignity and are resolved, through decisions on targets,timetables and partnerships, to speedily increase access to such basicrequirements as clean water, sanitation, adequate shelter, energy, healthcare, food security and the protection of biodiversity.

Principle 19: We reaffirm our pledge to place particular focus on, and givepriority attention to, the fight against the worldwide conditions that posesevere threats to the sustainable development of our people, which include:chronic hunger; malnutrition; foreign occupation; armed conflict; illicit drugproblems; organized crime; corruption; natural disasters; illicit armstrafficking; trafficking in persons; terrorism; intolerance and incitement toracial, ethnic, religious and other hatreds; xenophobia; and endemic,communicable and chronic diseases, in particular HIV/AIDS, malaria andtuberculosis.

Principle 20: We are committed to ensuring that women’s empowerment,emancipation and gender equality are integrated in all the activitiesencompassed within Agenda 21, the Millennium development goals and thePlan of Implementation of the Summit.

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BASFBASF

"A business cannot be successful in the long term if it doesnot act responsibly toward the environment and society.That is why sustainability is an integral part of our strategy."Jürgen Hambrecht, Chairman of the Board of Executive Directors

Acting responsibly in our Supply Chain: How carefully do carriers handle BASF's products? Under what

conditions do BASF's technical partner companies work? Howsafe are our suppliers' products and processes?

What counts for us is acting responsibly throughout the entiresupply chain because we want to build stable and sustainablerelationships with our business partners. This is why we choosecarriers, service providers and suppliers not just on the basis ofprice, but also include their performance in the fields ofenvironmental and social responsibility when making ourdecisions.

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Newmont MiningNewmont Mining

Beginning with geologic exploration, our success is tied toour ability to develop, operate and close mines in a mannerthat provides long-term value. Long-term value has evolvedinto a broad set of concepts that are now referred to as"sustainable development" or "sustainability."

Sustainability can be summarized in four key principles: First, benefits of economic activity must be considered in

relation to their respective social and environmentalconsequences;

Second, in using resources, we must consider the needs andexpectations of future generations;

Third, government, business and other segments of civil societymust act together to balance these needs;

Fourth, the corporate governance contributes to sustainableeconomic development by enhancing the performance of thecompany and increasing its access to land and capital.

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Newmont MiningNewmont Mining

Protect and respect human rights, community engagementand consultation, contribute to communities' developmentaspirations, and mitigate the impacts of our miningactivities. Our ability to engage, understand and manage theneeds and interests of communities during the developmentand operating stages is the key challenge aroundcommunities.

Protect human health and the environment, and work incooperation with host communities and governments tocreate sustainable, long-term economic and socialopportunities.

Eliminate or reduce to a level as low as reasonably possibleany risk that could result in personal injury, illness, propertydamage, process or loss to the environment by developingand implementing the most effective health, safety and lossprevention management system possible

Attract, develop and retain the company's most valuableasset, our employees.

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Newmont Mining Jan. 2009Newmont Mining Jan. 2009NGNG

National Geographic Magazine “Even at showcasemines, such as Newmont Mining Corporation'sBatu Hijau operation in eastern Indonesia, where$600 million has been spent to mitigate theenvironmental impact, there is no avoiding thebrutal calculus of gold mining. Extracting a singleounce of gold there—the amount in a typicalwedding ring—requires the removal of more than250 tons of rock and ore.”

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Newmont Mining NGNewmont Mining NG

“Pushed by rising gold prices and the depletion of deposits in the U.S.,South Africa, and Australia, the world's largest mining companies arepursuing gold to the ends of the Earth. Few companies have goneglobal more aggressively than Newmont, a Denver-based mining giantthat now runs open-pit gold mines on five continents, from thelowlands of Ghana to the mountaintops of Peru. Lured by the benefitsof operating in the developing world—lower costs, higher yields, fewerregulations—Newmont has generated tens of thousands of jobs in poorregions. But it has also come under attack for everything fromecological destruction to the forced relocation of villagers.

At Batu Hijau, where Newmont, the single largest share­holder, iswholly responsible for the mine's operation, the company hasresponded by ramping up community development and environmentalprograms—and dismissing its critics. "Why is it that activiststhousands of miles away are yelling, but nobody around the minecomplains?" asks Malik Salim, Batu Hijau's senior external relationsmanager. "Gold is what drives everybody crazy.”

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Newmont Mining NGNewmont Mining NG

At Batu Hijau, Newmont uses a finely tunedflotation technology that is nontoxic, unlike thepotentially toxic cyanide "heap leaching" thecompany uses in some of its other mines. Evenso, no technology can make the massive wastegenerated by mining magically disappear. Ittakes less than 16 hours to accumulate moretons of waste here than all of the tons of goldmined in human history. The waste comes intwo forms: discarded rock, which is piled intoflat-topped mountains spread across what usedto be pristine rain forest, and tailings, theeffluent from chemical processing thatNewmont pipes to the bottom of the sea.

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DuPontDuPont’’s Sustainability Goalss Sustainability Goals

In DuPont’s 2008 Sustainability ProgressReport, Chairman and CEO Chad Hollidaystated: “We are taking a holistic approach to

sustainability that fully integrated into ourbusiness models.”

“We continue to strive for zero safety andenvironmental incidents. And we aremaintaining our focus on decreasing rawmaterial and energy inputs and reducingemissions at our sites.”

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Canon ~Canon ~ KyoseiKyosei

“Canon’s corporate philosophy is kyosei. Kyosei aspires to asociety in which all people, regardless of race, religion, orculture, harmoniously live and work together for the commongood into the future. Kyosei, in other words, is an attempt tobring about a society characterized by sustainable prosperity.Canon aims to become a truly excellent global corporationworthy of admiration and respect around the world. Weconsider the fulfillment of our social responsibilities to be anatural obligation as we respond to various challenges and workto fulfill the expectations of our stakeholders, beginning withour customers, our shareholders and investors, our employees,and the local communities in which we operate.”

Canon Sustainability Report 2008

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The Conference BoardThe Conference Board

Set up a Research group on Corporate Governanceand Sustainability – Doing Well by Doing Right.

“It used to be that a company’s financial issues differedfrom its social issues. But in today’s business climate, anorganization’s financial matters are its social matters.”

Companies are being forced to address climate change,environmental protection and human rights by largeinvestors, public pension funds and many othershareholders.

“By integrating sustainability and citizenship initiativesinto your overall strategy, you not only benefit society, butalso your bottom line.”

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The Conference BoardThe Conference Board

On Jan 29-30, 2009, at its “2009 LeadershipConference on Global Corporate Citizenship”,some participants included:

Global VP for Corporate Responsibility for Molson Coors

Bayer’s Chief Administrative for Corporate SocialResponsibility

Kimberly-Clark’s VP for Global EH&S

3M’s Senior VP for Environmental Affairs.

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Price Waterhouse CoopersPrice Waterhouse CoopersSustainability Survey ReportSustainability Survey Report

In 2002, PWC concluded that” Sustainabilityspeaks directly to those societal and financialvalues in terms of the need to protect thefuture.”

Using Brundtland’s report, PWC statedfurther that we must “Think of it moresimply as doing your part to build a world –economically, environmentally and socially –that you want to live in, and that you wantyour children and grandchildren to inherit.”

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Environmental Defense FundEnvironmental Defense Fund’’ssInnovation ExchangeInnovation Exchange

www.edf.org

RESOURCE: The Innovation Exchange provides a no-cost, comprehensive set of recommendations, casestudies, publications and tolls for companies to improvetheir environmental performance.

Lisa Manley, The Coca-Cola Company’s Director ofEnvironmental Communications said: “Access to provenenvironmental strategies is more vital to businesssuccess than ever before. Collaborative innovationbetween companies will play a major role in helping usmeet our sustainability goals.”

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The Erb Institute for GlobalSustainable Enterprise –

University of Michigan The multinational corporation is the most powerful

societal agent of change on the planet, and can domuch to address our pressing environmental issuesand to lift people out of poverty. But corporationsalso cause many of the changes that threaten thesustainability of our planet. The job of the ErbInstitute is to help bring the power of business tobear on our most pressing sustainability challenges.

Research at the Erb Institute seeks to reveal howbusiness strategy, operating within a context ofpolicies and social norms, can produce desirableenvironmental and social outcomes.

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Emory UniversityEmory UniversityOffice of Sustainability InitiativesOffice of Sustainability Initiatives

Sustainability is defined as meeting the needs of thepresent generation without compromising the needsof future generations. As part of a commitment topositive transformation in the world, Emory hasidentified sustainability as one of the University’stop priorities.

Areas of focus:

Building green

Integrating sustainability into the curriculum

Promoting commute options

Protecting green space

Conserving water

Recycling waste

Providing local and sustainably-grown food

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Atlanta Regional CommissionAtlanta Regional Commission (ARC)(ARC)Green Communities ProgramGreen Communities Program

In Jan 2009, ARC launched its GreenCommunities Certification Program that willenable communities that voluntary completean application covering 60 specific measuresin 10 categories will become certified.

ARC Chair Sam Olens said: “Communitiesaround the region are already implementingways to use fewer resources and be moresustainable.”