Sustainable Business and Safer Chemistry Through the Supply Chain How SC Johnson Uses Greenlist ™...

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Sustainable Business and Safer Chemistry Through the Supply Chain How SC Johnson Uses Greenlist To Reduce Our Environmental Footprint Innovators Roundtable November 14-16, 2005 Darden School of Business

Transcript of Sustainable Business and Safer Chemistry Through the Supply Chain How SC Johnson Uses Greenlist ™...

Page 1: Sustainable Business and Safer Chemistry Through the Supply Chain How SC Johnson Uses Greenlist ™ To Reduce Our Environmental Footprint Innovators RoundtableNovember.

Sustainable Business andSafer Chemistry Through the Supply

Chain•How SC Johnson Uses Greenlist™

•To Reduce Our Environmental Footprint

Innovators Roundtable November 14-16, 2005Darden School of Business

Page 2: Sustainable Business and Safer Chemistry Through the Supply Chain How SC Johnson Uses Greenlist ™ To Reduce Our Environmental Footprint Innovators RoundtableNovember.

• 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 footprint

Greenlist™ is not a list of chemicals

Page 3: Sustainable Business and Safer Chemistry Through the Supply Chain How SC Johnson Uses Greenlist ™ To Reduce Our Environmental Footprint Innovators RoundtableNovember.

• 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 footprint

How the Greenlist™ Works

Page 4: Sustainable Business and Safer Chemistry Through the Supply Chain How SC Johnson Uses Greenlist ™ To Reduce Our Environmental Footprint Innovators RoundtableNovember.

• Presence moves material down one class– PBT/POP (EPA Classifications)– Endocrine disruptors– Carcinogenicity (IARC, Proposition 65, EU

Category II)– Reproductive toxicity (Proposition 65)– Other “chemicals of concern” lists

• Banned in one or more countries where SC Johnson markets products.

• Unofficial bans (trade, associations)

Greenlist™ - Reducing ourenvironmental footprint

Other Significant Concerns

Page 5: Sustainable Business and Safer Chemistry Through the Supply Chain How SC Johnson Uses Greenlist ™ To Reduce Our Environmental Footprint Innovators RoundtableNovember.

FY00/01 FY02/03 FY03/04 FY04/050.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60O

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EC

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1.12 on 232 Million Kgs

from 5-Rated Categories

1.26 on 227 Million Kgs

from 5-Rated

Categories

1.24 on 270 Million Kgs

from 9-Rated

Categories

1.41 on 620 Million Kgs

from 17-Rated

Categories

Greenlist™ - Reducing ourenvironmental footprint

Page 6: Sustainable Business and Safer Chemistry Through the Supply Chain How SC Johnson Uses Greenlist ™ To Reduce Our Environmental Footprint Innovators RoundtableNovember.

Partnering with Suppliers to “Green”The Supply Chain

There 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

Page 7: Sustainable Business and Safer Chemistry Through the Supply Chain How SC Johnson Uses Greenlist ™ To Reduce Our Environmental Footprint Innovators RoundtableNovember.

Dow Chemical A Unique and Innovative Supplier• Wide range of Raw Materials

Plastics 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 projects

High through-put capabilities to screen and identify alternatives

Total Solutions to meet cost/performance criteriaProduct Alternatives to address EH&S concerns

Page 8: Sustainable Business and Safer Chemistry Through the Supply Chain How SC Johnson Uses Greenlist ™ To Reduce Our Environmental Footprint Innovators RoundtableNovember.

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?

Page 9: Sustainable Business and Safer Chemistry Through the Supply Chain How SC Johnson Uses Greenlist ™ To Reduce Our Environmental Footprint Innovators RoundtableNovember.

• 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