DOING BUSINESS IN A GREEN ENVIRONMENT

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DOING BUSINESS IN A GREEN ENVIRONMENT

• Eileen Moyer
• Reckitt Benckiser
• NAA/WAIB Conference
• February 21, 2008

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WHAT ARE THE DRIVERS?

• Interest in products and practices that have
  responsible environmental, health and ethical
  attributes
• Government
• Customers
• Consumers
• Investors

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WHAT ARE THE DRIVERS?GOVERNMENT EPP PROGRAMS

• EPA Guiding Principles
• Pollution prevention
• Life Cycle view of multiple attributes
• Environmental performance information
• Corporate environmental performance
• Product Content and use
• Product packaging and shipping
• Use of USDA designated biobased products

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WHAT ARE THE DRIVERS?GOVERNMENT EPP PROGRAMS

• State Local EPP Policies
• Executive order/statutory/policy
• Mandatory/RFPs
• 15 states
• 16 local government authorities
• City, County, school districts

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WHAT ARE THE DRIVERS?GOVERNMENT EPP PROGRAMS

• State Local EPP Policies
• Chemical cleaning products
• 15 of 31 prefer EcoLabeling programs
• 11/15 cite Green Seal
• 3/15 cite the EPA DfE
• 2/15 cite Environmental Choice/Ecolabel

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WHAT ARE THE DRIVERS?GOVERNMENT

• State legislative activities
• Bans
• Restrictions/substitutions
• Toxic substance lists
• East west coast most active
• California
• Maine
• Massachusetts
• Vermont

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WHAT ARE THE DRIVERS?CUSTOMERS

• Wal Mart
• Corporate goals
• Supplier requirements
• Packaging scorecard
• Ingredients
• Carbon labeling
• Home Depot
• Tesco
• Whole Foods

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WHAT ARE THE DRIVERS?CONSUMERS

• Concerns about family health
• Want to feel they contribute positively to the
  environment
• Want to feel that they contribute to society

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WHAT ARE THE DRIVERS?INVESTORS

• Investors consider the value of companies as
  rated by various performance indices
• Community, environment, marketplace and workplace
• Benchmark management practices against recognized
  corporate responsibility standards
• Business in the Community Corporate
  Responsibility Index
• FTSE4Good Index
• Dow Jones Sustainability Index

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WHERE DOES THIS TAKE US?

• The push may be to green, but how do you define
  green?
• The invention, design and application of chemical
  products and processes to reduce or to eliminate
  the use and generation of hazardous substances.
  (INCA Inter-university Consortium Chemistry for
  the Environment)
• Green chemistry, also called sustainable
  chemistry, is a chemical philosophy encouraging
  the design of products and processes that reduce
  or eliminate the use and generation of hazardous
  substances. (Wikipedia)
• To promote innovative chemical technologies that
  reduce or eliminate the use or generation of
  hazardous substances in the design, manufacture,
  and use of chemical products. (EPA Green
  Chemistry mission statement)

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WHERE DOES THIS TAKE US?

• The push may be to green, but how do you define
  green?
• The invention, design and application of chemical
  products and processes to REDUCE OR TO ELIMINATE
  THE USE AND GENERATION OF HAZARDOUS SUBSTANCES.
  (INCA Inter-university Consortium Chemistry for
  the Environment)
• Green chemistry, also called sustainable
  chemistry, is a chemical philosophy encouraging
  the design of products and processes that REDUCE
  OR ELIMINATE THE USE AND GENERATION OF HAZARDOUS
  SUBSTANCES. (Wikipedia)
• To promote innovative chemical technologies that
  REDUCE OR ELIMINATE THE USE OR GENERATION OF
  HAZARDOUS SUBSTANCES in the design, manufacture,
  and use of chemical products. (EPA Green
  Chemistry mission statement)

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WHERE DOES THIS TAKE US?

• Paradigm shift
• From green products to sustainable practices
• Involves initiatives that include
• Environmental
• Social
• Economic
• Sustainability is the intersection of the three
  initiatives

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SUSTAINABILITY
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LCA
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SUSTAINABILITY

• Life cycle analysis considers all parts of the
  process
• Ingredients are carefully analyzed
• ENHANCED PROCESS
• Refinement of ingredient review programs
• Sources evaluated renewable vs. non-renewable
• CleanGredients program from DfE
• Elimination of ingredients based on public
  perception
• Packaging
• Recycled content vs virgin
• Reduced
• Lighter

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SUSTAINABILITY

• Use
• Carbon footprint 50 to 70 from consumer use
• Largest part of energy water use is at the
  consumer level
• Over 80 of energy water
• Products that use cold water
• Concentrates
• Disposal
• Recyclable materials
• Delivery systems that reduce waste

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SUSTAINABILITY

• Raw Material Sourcing
• Renewable vs. non-renewable
• Sustainable business practices
• Carbon Disclosure Project
• Processing
• Energy conservation
• Water conservation

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COMMUNICATION

• Lack of ability to properly communicate
  sustainability will
• Damage public confidence
• Damage reputation of products and chemicals
• Misdirect resources

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COMMUNICATIONCLAIMS GREENWASHING

• Unsubstantiated/Vague
• Eco safe
• Earth smart
• Chemical free
• Hidden trade off
• Focus on one or two attributes
• Irrelevance
• CFC-free?

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COMMUNICATIONCLAIMS

• Federal Trade Commission
• FTC currently reevaluating and updating
  guidelines (Nov. 26 Fed. Reg.)
• Examine how consumers interpret environmental
  claims
• Series of workshops planned
• Carbon offsets
• Renewable energy certificates
• Have asked for comments on a series of questions

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COMMUNICATING

• Certification programs

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COMMUNICATINGCERTIFICATION PROGRAMS

• Most have standards that are black and white
• No aerosols
• No risk assessment
• Stifle innovation
• EPA Design for the Environment
• Looks at reduction of hazard but considers risk
• Providing tools
• CleanGredients
• Working on solvents
• Safer Detergent Stewardship Initiative

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COMPANIES USING HOLISTIC APPROACH

• Desire to have positive impact on environment
  quality of life
• Committing to measurable actions
• Public commitments
• Carbon Disclosure Project
• RB Carbon 20 and Trees for Change
• Social responsibility
• Cause marketing
• RB work with Save the Children

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GREEN IS PASSE

• Corporate responsibility has a broader impact on
  the sustainability of the earth
• Environmental accountability is one aspect and
  not the only driver
• Industry needs to find a way to better
  communicate the actions and contributions we are
  making

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DOING BUSINESS IN A RESPONSIBLE, SUSTAINABLE
ENVIRONMENT