The Business of Environmental SustainabilityThe Business of Environmental Sustainability

John AlexanderJohn AlexanderJohn AlexanderJohn AlexanderPresident – Americas

Diversey, Inc.y,

GEMI: The Business of Sustainability

Congratulations on 20 years– Helping shape environmental sustainability– Protecting the environment– Protecting the economic viability of member companies

Founding MembersFounding Members– Duke Power– The DuPont Company

Eastman Kodak Compan– Eastman Kodak Company– Johnson & Johnson– Merck– The Procter & Gamble Company– The Southern Company

Agenda

Sustainability at Diversey

GEMI – Why you are importanty y p

Diversey – A GEMI Case StudyDiversey A GEMI Case Study

Where do we go next?Where do we go next?

Sustainability at Diversey

Sustainability starts with our Purpose

Triple Bottom Line

Most definitions focus on protecting the “triple bottom line”

People Planet Profits

Human Impact

Environmental Impact

Financial Impact

Integrated Bottom Line

A more operational, integrated equation

Enhanced Top-line Growth

Reduced Operational

C tTop line Growth Costs

Brand value, customer relationship, talent

i i / i

Energy, water, waste, compliance, health, labor liabilityrecruiting/retention labor. liability

Integrated Bottom Line

Growth++

Cost Savings++

“Integrated Bottom Line”

==

Integrated Bottom Line

Sustainability:Integrated, owned, embracedIntegrated, owned, embraced

Done well, sustainability is– built into operating systems and measures– “owned” by all leaders– embraced by all employees– both internal and external facing

Critical conceptsCritical concepts– Continuous improvement– Built into reward systems– Reflects corporate humility

Challenge to Industry in 21st Century

Because capital resources (human, financial, social, physical and environmental) are finite, unbridled consumption cannot continue forever

Therefore sustainability is the only path to a viableTherefore, sustainability is the only path to a viable enterprise and sustained competitive advantage

“A sustainable enterprise is dependent on a sustainable environment. Management decisionsenvironment. Management decisions that fail to reflect this put a company at grave, future risk.”Sam Johnson, 1975

Heritage of Sustainability: Leading before we had toLeading before we had to1935 – HF Johnson flew to Brazil for sustainable

sources of carnauba wax1999 – Production plants ISO certified

2004 – Global Responsibility Report1969 – Low VOC floor finish developed

1975 – Removal of CFCs

1976 – “This We Believe” written

2004 Global Responsibility Report

2004 – LEED-EB Certification of HQs

2006 – Removal of APEOs

1980 – First raw material use policy

1989 – AccumixTM pack introduced

1990 – Global Packaing Award: EnviroBoxTM

2007 – Defined Purpose

2008 – Climate Savers acceptance

2009 – Global Water Roundtable

Our PurposeClimate SaversKey Milestones on our Journey

1990 Global Packaing Award: EnviroBox

Removal CFCs

This We Believe

Carnauba

LEED EB

11 02MAR10 DIVERSEY CONFIDENTIAL - DO NOT DISTRIBUTE 11

Heritage of Sustainability LeadershipLeadership Recognition

“Di h d d f“Diversey has set a new standard for addressing climate change. The company is stepping into uncharted territory with an initiative that should serve as a blueprint forinitiative that should serve as a blueprint for the entire industry.”Carter Roberts,

President, CEO WWF

Hunter Lovins,President Natural

“I’ve long admired the work of the Johnson companies after years of knowing Sam Johnson. It is President, Natural

Capital Solutionsencouraging to see Diversey continue Sam’s legacy.”

Business Sustainability Imperative

Internal - We manage OUR business environmental/sustainability footprint– Six wind turbines on Diversey’s global HQ

reduces energy costs, carbon emissions and environmental impact

External – We help our customers meet THEIRcustomers meet THEIR sustainability goals– Diversey helped this

$12 billion dairy processing$12 billion dairy processing plant reduce its water consumption by one-third

Sustainability Commitment

Provides a framework for everything we do to deliver the following

S bl h ll i lStable, challenging employment

Profitable business operations

Healthy, thriving communities

GEMI – Why you are important

GEMI: Improving environmental performance p g pand promoting corporate citizenship

Set Raise the Identify and Develop Setsustainability

standardssustainability

bar for organizations

yvet emerging sustainability

issues

pstrategies

and tools to address

these issues

Diversey: A GEMI Case Study

GEMI helped influence Diversey’s sustainability position and actions– Sustainable Development Planner – SD Planner Tool– Metrics Navigator Tool– Climate Change Toolg– Water Sustainability Tools

2003-2006: Diversey contributed to the development and updating of these toolsupdating of these tools2006 – present: Diversey utilized these tools as we built or own sustainability program to fit our business

Sustainable Development (SD) Planner Tool

Informed our thinking around sustainabilityHelped define sustainabilitySWOT Analysis helped us identify sustainability impactsidentify sustainability impacts and opportunities

Metrics Navigator Tool

Helped us select and implement our targeted metricsAllowed us to remain consistent with our culture

Climate Change Tool

Assisted with the construction of our greenhouse gas baselineHelped develop our greenhouse gas emission reduction programprogram

WWF Climate Savers

Absolute GHG Emissions ReductionCommitment to Industry Leadershipy pThird Party VerificationCommitment (2008)– 8% GHG reduction from 2003 baseline by 2013– Invest $19MM with cumulative return of $34MM

Revised Commitment (2009)( )– 25% GHG reduction from 2003 baseline by 2013– Invest $14MM with cumulative return of $36MM

Water Sustainability Tools

Strategic Module (Connecting the Drops) – helped identify waster vulnerabilities across our global organizationFacility Module (Collecting theFacility Module (Collecting the Drops) – helped identify and reduce our water footprint at the facility levelfacility level

Global Water Roundtable

Develop Water Stewardship Standards– Sustainable use of fresh water

resourcesAuditable with Certification SchemeMulti-Stakeholder ProcessL d b Alli f W tLed by Alliance for Water Stewardship– The Nature Conservancy– World Wildlife Fund– The Pacific Institute

Where do we go next?

Sustainability - Role of BusinessDeliver social and environmental benefits

Increase market share & profitabilityIncrease market share & profitability

Provide value to customers

Business needs flexibility to manage for their long term sustainability whilefor their long-term sustainability while

improving social and environmental impacts

Sustainability - Role of GovernmentMeasure & report compliance to key benchmarks

Define benchmark targetsDefine benchmark targets

Provide regulatory/incentive structure

Government needs to provide a structure Go e e t eeds to p o de a st uctu ethat encourages business investment

Sustainability - Role of NGO’sContinual improvement of societal outcomes

Improve structures aimed at achieving targetsImprove structures aimed at achieving targets

Influence societal targets

NGO’s need to engage consistently and constructively with government and business toconstructively with government and business to ensure that needs are met quickly and efficiently

Collaboration: Business, Government, NGO’s

Collaboration on the rise

Business, Government, NGO s

– Still the exception rather than the ruleDramatically accelerates paceResulting alignment reduces wasted resourcesResulting alignment reduces wasted resources

How can we energize collaboration for societal benefit?

GEMI & Diversey

Instrumental partnership

The results speaks for themselvesp

You’re not alone on this journeyYou re not alone on this journey

C t l ti !Congratulations!