Investing for the Planet They re two sides of the same sustainability strategy

Transcription

1 Investing in People, Investing for the Planet They re two sides of the same sustainability strategy 2010 Public Report

2 About This Book There s more than one facet to sustainable business, and at SC Johnson, we believe in taking a holistic approach. That's why the printed edition of this Public Report had two covers and two ways to get to know SC Johnson. For this online edition, we've compiled the two sections into one handy PDF. Interested in our environmental leadership? Start reading here. Interested in social progress and public health? Turn to the second half of the book and our alternate cover, on page 19 of this online PDF. Either way, the whole book is about how SC Johnson is making the world better. What s in This Half? SC Johnson s Holistic Approach to Sustainability Our sustainability efforts target four key areas where we believe we can make the biggest impact on quality of life, economic progress, our product mix and the planet. They are... Improving Our Products: Choosing more earthresponsible ingredients. Reducing Resource Use: Reducing energy consumption and greenhouse gas emissions. Strengthening Communities: Advancing social progress and public health. Protecting Families: Preventing insect-borne diseases. SC Johnson at a Glance a look at our business and recent environmental milestones. PAGE 4 Improving Our Products an update on how we re making better products with better ingredients and better information. PAGE 6 Reducing Resource Use our continuing efforts to reduce greenhouse gas emissions and minimize energy consumption. PAGE Metrics Quick Reference at SC Johnson, we re committed to setting sustainable development goals, tracking our progress and reporting our results. This is our 19th year of public reporting. Here's a quick summary of our results. PAGE 16 Questions about this report should be directed to Kelly M. Semrau, Vice President Global Public Affairs and Communication, at kmsemrau@scj.com or Printed on paper containing post-consumer fiber. Printed on paper manufactured with renewable wind power. Cert no. BV-COC This cover reflects a few examples of how SC Johnson is making a difference, from continually improving our products to using innovative power sources, including wind power, in the United States and Europe. Find Out More Want to know more about SC Johnson? Visit our web site to find out about the company and its history. We're at S. C. Johnson & Son, Inc.

3 Making life better for people and the planet is our mission at SC Johnson. A Message from the Chairman and CEO Part of being a responsible company is working hard to play our role in helping to solve the world s environmental problems and, importantly, also helping those who buy our products make more responsible choices. This is an opportunity that inspires us every day at SC Johnson. Making life better for people and the planet is our mission. Over the last year, we further reduced greenhouse gas (GHG) emissions, increased our use of renewable energy and invested in continually improving our products. We also have worked hard to provide more industryleading transparency for our consumers by labeling our products with their ingredients. We want our consumers to scrutinize the careful ingredient choices that we make so they can continue to trust our enduring brands. We have begun laying the groundwork for our next five-year strategy, which includes expanding our GHG focus to address the full product lifecycle and working in new ways to minimize landfill impact. But these efforts are just part of our sustainability story. In 2009, we also continued to fulfill the obligation for business to drive social progress. We celebrated the 50th anniversary of our philanthropic arm, the SC Johnson Fund, Inc., as well as ongoing philanthropy by the company that began decades earlier. We continued to invest in baseof-the-pyramid business co-creation. And, through investments such as our collaboration with the Bill & Melinda Gates Foundation, we further extended our efforts to prevent the insect-borne diseases that affect millions of families around the world each year. This year, our public report has two different covers and routes to get to know SC Johnson. But they converge on the same belief that business has both an opportunity and an obligation to make the world better by advancing environmental and social progress. By sharing our company s efforts across both the environmental and social facets of sustainability, this 2010 Public Report aims to highlight the many ways in which we re bringing this belief to life. It s a commitment we ve upheld for more than 120 years, and an aspiration shared by the 12,000 people of SC Johnson. I continue to be very proud of, and grateful for, the difference we re able to make. H. Fisk Johnson, Chairman and CEO Investing in People, Investing for the Planet 2010 PUBLIC REPORT 3

4 SC Johnson at a Glance 12,000 people working in 70+ countries to make the world better. Product Categories Home Cleaning creating clean and hygienic homes. Pest Control helping protect families from pests that can carry malaria, dengue and other diseases. Air Care offering benefits from relaxing ambiance to odor elimination. Home Storage keeping food fresh and protecting families possessions. Major Brands Business Profile Sales: More than $8 billion Status: Privately held; led by the Johnson family for five generations Employees: 12,000 Headquarters: Racine, Wisconsin Industry: Household consumer products Markets: Our products are sold in virtually every country around the world. Operations: 70 countries Primary Manufacturing Locations: Argentina, Canada, China, India, Indonesia, Mexico, The Netherlands, the United Kingdom and the United States Commitment Everywhere we operate around the world, along with introducing innovative and quality products that meet the needs of families, SC Johnson is committed to: respecting people and supporting universal human rights adhering to all local laws and regulations regarding products and how they re made choosing more earth-responsible ingredients reducing emissions, waste and the use of fossil fuels, and we re now looking at new ways to minimize landfill impact, too contributing to our host communities through philanthropic contributions and local volunteerism Other Businesses In recent years, SC Johnson also acquired The Caldrea Company, marketer of the Mrs. Meyer s Clean Day and Caldrea brands, and Soy Basics, maker of soy candle brands including Beanpod Candles, Soy Scentsations and Soy Inspirations. We also acquired majority ownership of Fruits & Passion, the Quebec company that manufactures and sells personal care and ambiance products. Plus other trusted brands and regional product lines: Find It Online: SC Johnson is in its 19th year of publicly reporting progress on sustainability objectives. Visit for information about our reporting practices. Or, contact Kelly M. Semrau, Vice President Global Public Affairs and Communication, at kmsemrau@scj.com or SC JOHNSON AT-A-GLANCE

5 A Look at News from 2009 Along with launching more than 100 new products in 2009 and continuing to drive growth of the business, SC Johnson also achieved a variety of sustainability milestones during the year. Here s a brief look at a few of these accomplishments... JANUARY SC Johnson launches the Nature s Source line of cleaning products made with 99+% natural or naturally derived ingredients. The line combines the power of trusted brands like Scrubbing Bubbles and Windex with a formula for consumers who want to tackle household jobs naturally. At its World Leadership Forum Luncheon in New York City, the Foreign Policy Association distinguishes both SC Johnson and our Chairman and CEO Fisk Johnson for commitment to corporate social responsibility. The recognition was due to the company s longstanding environmental and sustainability leadership. In particular, the Foreign Policy Association noted our success in innovating, manufacturing and marketing environmentally responsible products and our patented Greenlist process, as well as our renewable energy initiatives. MARCH SC Johnson announces plans to go beyond regulatory requirements and voluntarily provide ingredient information including dyes, preservatives and fragrance ingredients for our air care and home cleaning products. We also introduce to make this ingredient information readily accessible and understandable for consumers on the Internet. SC Johnson launches Ziploc evolve sandwich and storage bags. The new line offers the same quality seal and freshness protection, convenience and price that consumers rely on, but is made with 25 percent less plastic than regular Ziploc brand bags and manufactured with a combination of renewable wind energy and energy from traditional sources. NOVEMBER In support of Conservation International s Team Earth and to generate engagement for the cause, SC Johnson creates a section of its web site to collect environmental tips and inspire dialogue. For each tip shared, the company commits to contribute $1 to Team Earth, up to $25,000. Just nine months after launching our industry-leading ingredient web site, SC Johnson completes the task of populating the U.S. site with more than 200 air care and home cleaning products and their ingredients. We also announced a Spanishlanguage version of the U.S. site, which launched in February JULY In Mijdrecht, The Netherlands, SC Johnson launches our first owned and operated windmill at our largest European plant, called Europlant. The new windmill adds to SC Johnson s strategic array of clean energy projects designed to reduce greenhouse gas emissions. It is expected to generate 66 percent of the electricity needed to power Europlant. SEPTEMBER SC Johnson becomes a founding partner of Conservation International s Team Earth, a worldwide sustainability effort that unites businesses, non-profit organizations, scientists, educators and individuals to address the most pressing environmental issues. SC Johnson s Nature s Source cleaning products are among the first to receive the Green Good Housekeeping Seal, an extension of the well-known Good Housekeeping Seal. The new designation is designed to set the bar for consumers who want to live a greener lifestyle. And in January SC Johnson launches a wind energy pilot program at our headquarters campus in Racine, Wisconsin. Three Swift turbines are installed on the roof of one of the buildings on campus and connected to the company s electrical distribution system. We hope to gain from this experiment a clear picture of the number of computers, machines and basic office resources that can be powered by this renewable energy. Investing in People, Investing for the Planet 2010 PUBLIC REPORT 5

6 Improving Our Products Choosing More Earth-Responsible Ingredients and Being Transparent We re committed to making better products, and communicating openly about them. NEW THIS YEAR > Developed plans to further improve our Greenlist ingredient selection process. > Expanded ingredient disclosure to Canada and to Spanish-speakers in the U.S. > Invested in new products and product improvements that have a lighter footprint. Follow links to more information wherever you see this symbol. 6 Improving Our Products

7 Better Products from Better Information In 2001, SC Johnson transformed how we evaluate ingredients with our Greenlist process for classifying ingredients considered for use in our products. Nearly 10 years later, we re continuing to expand and develop the process. What is Greenlist? Our now-patented Greenlist process provides ratings for more than 95 percent of the ingredients we use. Each potential ingredient is rated from 3 to 0, with 3 considered Best, 2 Better, 1 Acceptable and 0-rated materials used only in special circumstances. The goal is that beyond meeting legal and regulatory requirements, we use the Greenlist process to annually increase the proportion of our ingredients with the least impact on the environment and human health. We started at 4 percent Best ingredients in 2001; today we are at 18 percent. 10% 4% 0-rated materials best 14% better Baseline 2000/01 1% 0-rated materials Results for 2008/09 When SC Johnson scientists create a new product, they work to select ingredients rated Better or Best. When products are reformulated, the scientist must use ingredients with ratings equal to or higher than the original formula. While some ingredients with a 0 score aren t restricted by government regulatory requirements, we use them only when there isn t a viable alternative. How We re Doing The Greenlist process has led to many improvements, such as phasing out less desirable ingredients like PVC packaging. Similarly, we ve improved numerous formulas to work better and have less impact. For example, we ve cut nearly 48 million pounds of VOCs from our products in the last five years. 18% best We ve also made good progress toward our aggressive 2011 aspiration of raising our overall average ingredient rating to 2. When we started Greenlist, 18 percent of our ingredients had a rating of 2 or better. By 2008/09, we d brought that number up to 44 percent. 73% acceptable (kg of raw material by EC, 5 base categories) 55% acceptable (kg of raw material by EC, 37 chemical and 12 component material types) 26% better But we haven t reached our target yet. Like any good scientific process, using the Greenlist process is a continual learning experience, and we continue to identify ways to make it even more valuable. Expert Q&A Enabling Better Decision-Making A Q&A with SC Johnson s Dan Lawson Q What is SC Johnson doing to drive product improvements with the Greenlist process? Our goal is to make it as easy as possible for our scientists to make better decisions. We call it decision-making at the bench, meaning the actual lab table. We want to make sure that the Greenlist process is readily understandable and practically applicable to product development. So, we re continually working on tools that help our scientists more easily see and evaluate potential ingredient options for a particular product function. We want them to be able to play around with those options to see how different choices would lower a product s impact. Dan Lawson is Sustainable Innovation Manager for SC Johnson. There s more! Click here to jump to the back of this book and read the entire interview, including what else SC Johnson is doing to drive product improvements. Investing in People, Investing for the Planet 2010 PUBLIC REPORT 7

8 Showing What We re Made Of In March of 2009, SC Johnson announced a broad ingredient communication program. It was the logical extension of the Greenlist process that has been helping us select better ingredients for the environment and human health since Knowing that families today want to understand more about the products they use in their homes, we decided to go beyond industry ingredient communication guidelines that had been announced. Instead, we committed to listing dyes, preservatives and fragrance ingredients, which aren t part of the industry program, and making our information available through not just one, but three sources: online, on product labels and via a toll-free number. Since that 2009 announcement, SC Johnson has achieved three key milestones in the implementation of our disclosure program: In November 2009, just eight months after announcing our plans, we had populated our U.S. ingredient site, The site now includes more than 200 air care and home cleaning products, and the hundreds of ingredients they include. In December 2009, SC Johnson Canada launched its own ingre dient site in both English and French, located at and Recognizing the launch, Paul Lapierre of Canadian Cancer Society noted, We believe that Canadians have the right to know which ingredients are in the products that they buy so that they can make informed decisions about their health and about the products that they use in their homes. We applaud SC Johnson s initiative to list ingredients on their products labels, and we encourage other companies to follow suit. In March 2010, SC Johnson became the first company in our industry to offer a Spanish-language ingredient site. Just like its English counterpart, the site offers easy-to-access and easy-to-understand information about the ingredients in SC Johnson s U.S. air care and home cleaning products. Chairman and CEO Fisk Johnson said, announcing the news, Families want to know what s in the products they use in their homes. By making that information accessible to Spanish-speaking consumers too, we re helping even more families understand that they can trust our products and our company. A History of Ingredient Leadership While all SC Johnson products meet legal and regulatory requirements, studies occasionally surface new information that makes a particular ingredient less desirable. In these cases, we often choose to go beyond the requirements and replace these ingredients with others that have a better environmental or health profile. Here are a few examples CFCs eliminated in 1975, three years before the U.S. government mandated doing so, because of concerns about their impact on the ozone layer. Chlorine-bleached paperboard packaging eliminated in 2002 because the chlorine can cause contamination of air and water. DDVP, an organophosphate insecticide eliminated in 2004 because of links to human health and environmental risk. Paradichlorobenzene (PDCB) in toilet products eliminated in 1993 due to concerns about its effect on ozone in the upper atmosphere and potential to contaminate water and accumulate in the food chain. Phthalates being eliminated now at SC Johnson s direction from the fragrances supplied for our products, because of consumer concerns about the larger class of substances in the phthalate family. Polyvinyl chloride (PVC) eliminated from our packaging in 2002 because it s not recyclable and has been linked to health problems and other issues. Propoxur, an insecticide eliminated in 2006 because of concerns about toxicity and persistence in the environment. 8 Improving Our Products

9 Policies and Partnerships No company can operate at its best without policies and partnerships that offer checks and balances, as well as surfacing new ideas. That s why we invest time and effort in both. Here s a look. A Matter of Policy From how we develop and market products to how we run our factories, SC Johnson has thorough guidelines that direct our actions. For example, we have environmental policies on topics such as protecting air quality and safeguarding rivers, lakes, wetlands and oceans. Alignment with policies is audited at SC Johnson factories around the world at least once every five years, which has led to continuous improvements in factory standards. Following an audit, an SC Johnson operation has 60 days to respond with a description of actions to be taken and a timeline for completion. How we determine product claims is a matter of policy, too. Claims can t be made simply for marketing purposes we have detailed standards for terms such as biodegradable and natural, as well as for performance claims. Along with helping ensure consistency in how we talk about our products, these guidelines also help ensure that claims are science-based. Setting the Record Straight Despite our ongoing commitment to responsibility, like any company SC Johnson occasionally finds itself in the spotlight due to Internet rumors or other media that make negative claims about our products or product categories. But we don t let misinformation stand. We carefully evaluate all SC Johnson products and take safety allegations and concerns very seriously. In fact, in a typical year SC Johnson explores at least 50 hoaxes, rumors or claims that surface online or in the media. Fact-based, scientific evidence is usually enough to correct misinformation. When a question is raised, we may review scientific literature, evaluate testing procedures, consult with experts, work with industry groups and more. We don t stop until we re fully satisfied that concerns are groundless. We ve worked hard to foster a reputation for doing what s right, and that s something we will always uphold and defend. Helpful Partnerships Some of SC Johnson s policies and guidelines develop over time as we learn from our own experiences and from outside partners. In 2005, SC Johnson became the first major consumer packaged goods company to partner with the U.S. EPA in its Design for the Environment (DfE) program. It s one of several partnerships that help us continuously improve our products. The DfE Safer Product Labeling Program uses EPA s expertise and resources to evaluate products and label those that meet the program s high standards. Our current DfE products include items in our Nature s Source, Scrubbing Bubbles and Shout brands. Another DfE program, the Safer Detergents Stewardship Initiative, recognizes companies that voluntarily commit to using safer surfactants in their products. SC Johnson was named a Champion in the Safer Detergents Stewardship Initiative in 2008, the highest level achievable. We also gained Charter for Sustainable Cleaning membership in 2006 with the International Association for Soaps, Detergents and Maintenance (A.I.S.E.) in Europe. This voluntary membership means we ve committed to continually improving our products and processes in ways that benefit human health and the environment. A Policy Example We often hear from consumers and organizations who want to know SC Johnson s position on animal testing, so we ve made it easily accessible in the Points of View section of our online Press Room. The bottom line is that we have to meet government, safety and environmental requirements for our products, but we re working toward ways to do so while continually minimizing animal testing. Visit to access the full position statement. Investing in People, Investing for the Planet 2010 PUBLIC REPORT 9

10 Superior Products, Made Smarter Each day, SC Johnson products are used by millions of families around the globe. That s why we think it s so important that our products not only be innovative, but also effective and responsible. Here are a few examples of recent product advances. This innovative mosquito coil is made using more than 50 percent recycled paper instead of the usual mixture of sawdust and other ingredients. As a result, it weighs a third less than normal coils, but is actually more durable. Since it s not easily breakable like other coils, we were able to reduce the packaging around it by more than 70 percent. In China, we updated both the formula and the bottle for this Mr. Muscle Heavy Duty Kitchen Cleaner. A 30- percent-lighter bottle means less plastic and the new formula is less caustic, has a lower cost and still works as well or better than competitive products. Producing it requires 350 fewer tons of ingredients annually. These ultra-light Ziploc evolve bags are made with 25 percent less plastic than regular Ziploc brand bags, and are manufactured with a combination of renewable wind energy and energy from traditional sources. Our new Earth Options by Raid products give consumers a great solution for outdoor pests. Two of the products use pyrethrum, a botanically derived insecticide from the chrysanthemum flower. The Insecticidal Soap is approved for organic production by the USDA s National Organic Program, and is listed by the Organic Materials Review Institute (OMRI) for use in the production of organic food and fiber. 10 Improving Our Products

11 An evaluation of Windex glass cleaner formula showed we could make the surfactant and solvent work together better. We optimized the ratio of ingredients and were still able to satisfy consumers. Even better, the new combination of ingredients and quantities used gives the product an even better environmental profile. Along with delivering superior coverage in tubs and showers, Scrubbing Bubbles Daily Shower Cleaner Power Sprayer, along with Scrubbing Bubbles Extend-A-Clean Power Sprayer for bathroom surfaces, brings one-touch ease to consumers who aren t able to or prefer not to repeatedly squeeze a trigger. In fact, it s earned the Arthritis Foundation s Ease of Use Commendation seal. Nature s Source cleaning products were among the first to receive the new Green Good Housekeeping Seal. This designation is meant to set the bar for consumers who want to live a greener lifestyle. Nature s Source cleaners are packaged in recyclable bottles and contain 99+ percent natural ingredients. Glade PlugIns Scented Oil refills used to come in boxes with larger, plastic-covered windows. By changing to these smaller, teardrop-shaped windows, we could eliminate the plastic, making the packages easier to produce, transport and recycle. Investing in People, Investing for the Planet 2010 PUBLIC REPORT 11

12 Reducing Resource Use Reducing Energy Use and Greenhouse Gas Emissions We re committed to continually lightening our impact on the world. NEW THIS YEAR > Began partnering with WRI and ClearCarbon to test new GHG reporting protocols. > Joined Conservation International in launching its Team Earth program. > Achieved further progress toward our 2011 greenhouse gas reduction goals and laid groundwork for working in new ways to minimize landfill impact. Follow links to more information wherever you see this symbol. 12 Reducing Resource Use

13 Doing Better, With Less For decades, SC Johnson has taken steps to minimize our impact. Since 2000 alone, our worldwide factory greenhouse gas emissions are down nearly 32 percent, far surpassing our goal of a 12 percent reduction by the end of And we want to do even more. That s why SC Johnson has been helping to develop, and now test, standards for measuring and reporting greenhouse gas (GHG) emissions across corporate and product supply chains. Expanding Reporting This is the latest step of the GHG Protocol Initiative convened by the World Resources Institute and the World Business Council for Sustainable Development. On the heels of previous standards, such as the GHG Protocol Corporate Accounting and Reporting Standard that SC Johnson employs, this new effort aims to define standards and measures for broader reporting. In January, SC Johnson joined a formal test of the Scope 3 (Corporate Value Chain) Accounting and Reporting Standard. This new standard broadens companies measurement to include what are known as Scope 3 emission sources upstream activity such as direct supplier emissions, waste generated, and company business travel, as well as downstream activity such as transportation and distribution, consumer use and product disposal. Energy Innovations, GHG Advances From wind power to waste palm shells to methane from a public landfill, SC Johnson uses innovative energy sources to minimize our GHG impact. And it s working: > 2009 global manufacturing GHG emissions down 31.6% vs on an absolute basis > 2009 U.S. GHG emissions down 29.1% vs on an absolute basis > 39.7% of the company s electricity sourced from renewable energy Testing the New Standard The goal is to incorporate real-world feedback that ensures the new standard can be implemented by companies of all sizes, geographies and industries. About 60 companies are testing the Scope 3 protocol or its sister effort, the Product Life Cycle Accounting and Reporting Standard. WRI Q&A Expert Q&A Making Measurement Matter A Q&A with ClearCarbon s Kyle Tanger Q Is there a business case for companies to get involved with greenhouse gas (GHG) reductions? Absolutely. Carbon, quite simply, is money. I think companies are finding that when they reduce their carbon footprints, they save money. Carbon has a price, whether that price is pollution, the cost of energy or something else. Having a low carbon footprint is a strong cost-efficiency initiative. Calculating a carbon footprint is where the GHG Protocol standards come in. Standard protocols and measurements will give companies a more accurate picture of the environmental, economic and social impact of the products they make. This will help companies identify the best partners and make strategic decisions for sourcing materials and creating products. It lets companies see the available choices, weigh the tradeoffs and avoid unintended consequences. Q How does the supply chain fit in? When it comes to most consumer products, companies are realizing that a majority of the emissions created during a product s lifecycle occur within the supply chain. A tremendous amount of energy goes into finding and processing raw materials, transporting materials and making them into finished products. Even before products are sold to consumers, many have a huge amount of embedded energy. Kyle Tanger is the founder and CEO/President of ClearCarbon, which helps organizations create competitive advantage through carbon measurement, management and monetization. SC Johnson is working with ClearCarbon as we test the Scope 3 protocol. There s more! Click here to jump to the back of this book and read the entire interview, including what Kyle sees on the horizon. Investing in People, Investing for the Planet 2010 PUBLIC REPORT 13

14 Measuring Our Progress Here s a look at SC Johnson s 2009 progress against our company s energy, emissions and other goals. We re thrilled to have already achieved three of these four corporate objectives, which are due to be completed by the end of Waste and Emissions Reduction GOAL: By 2011, for global manufacturing reduce combined air emissions, water effluents and solid waste by 50 percent versus the 2000 baseline, as a ratio to production. Greenhouse Gas Reduction U.S. GOAL: By 2011, reduce on an absolute basis U.S. GHG emissions another 8 percent versus the 2005 baseline % % ACHIEVED -40.5% -46.0%* -54.0% GOAL % ACHIEVED ACHIEVED GOAL -17% -29.1% Greenhouse Gas Reduction Worldwide GOAL: By 2011, reduce GHG emissions for all worldwide factories by 12 percent versus the 2000 baseline on an absolute basis. Global Renewable Energy GOAL: By 2011, source 40 percent of total electricity usage worldwide from renewable energy % ACHIEVED ACHIEVED ACHIEVED GOAL -15% -27% % % % % 39.7% GOAL * Our last Public Report indicated we held steady at -40.5% in 2008, however when all final global data was in, we had achieved a 46% reduction. Here s a look at SC Johnson s 2009 energy consumption by source. Direct Energy Consumption by Source Indirect Energy Consumption by Source 4% gasoline 5% palm shells 20% landfill gas 2% LPG 37% purchased renewable electricity 1% kerosene 5% fuel oil 2% diesel 60% natural gas 62% purchased electricity 1% purchased steam 14 Reducing Resource Use

15 Continuous Commitment, Continuous Progress Here s a look at a few of the ways SC Johnson is continuing to progress our commitment to reducing greenhouse gas impacts around the globe. New Winds of Change In 2009, SC Johnson launched its first company-owned windmill, at our largest plant in Europe. The 262-foot wind turbine generates about 66 percent of the electricity needed to power our plant, preventing 3,930 metric tons of greenhouse gas (GHG) emissions annually. We then continued to push the winds of change in January 2010, launching a one-year wind energy pilot program at our headquarters in Racine, Wisconsin. Three Swift mini-wind turbines were installed on one of our office buildings, with the goal of reducing GHG emissions while raising awareness that renewable energy can be used in urban settings. Smarter Shipping, Lower Emissions In 2009, SC Johnson worked to implement legislation in Wisconsin that provides a special permit for heavier truckloads. With the permit, we can safely increase the weight of shipments to our local warehouses to 98,000 pounds from the normal 80,000-pound loads. The heavier loads result in 72,000 fewer shipping miles traveled yearly and 15.7 tons of carbon dioxide eliminated. In addition, 100 percent of 2009 outbound SC Johnson shipments were handled by carriers participating in the U.S. EPA s SmartWay 1 Transport Partnership, up from 78 percent in SmartWay is a trademark of the U.S. Environmental Protection Agency. Click here to jump to the back of this book and find out more. Supporting Team Earth In September 2009, SC Johnson became a founding member of Conservation International s Team Earth project, which unites businesses, non-profit organizations, scientists, educators and individuals to address the earth s most pressing environmental issues. Team Earth s first challenge is climate change, making it a natural fit for our commitment to innovative renewable energy solutions and reducing GHGs. SC Johnson s participation includes financial and other support. As one small example, last fall we created a special section of our web site where consumers can share environmental tips. For each tip submitted, SC Johnson is giving $1 to Team Earth, up to $25,000. Visit it at Expert Q&A Collaborating to Drive Results A Q&A with Conservation International s Julie Blackwell Q What benefits do companies bring to the Team Earth coalition? Because it blends top-name consumer brands, scientific research and individuals all around the world, Team Earth offers a unique approach to green outreach. For example, when we launched this spring s do more / do less campaign, our partners carried the message to their employees and customers. These are individuals CI didn t directly reach before, meaning millions of people are being encouraged to do more by planting trees or using compact fluorescent lights, and do less by driving less and creating less waste. Q Many of the companies involved with Team Earth already have sustainability campaigns in place. What will they do differently as members of Team Earth? Having strong sustainability practices makes them valuable partners. Still, a company working alone can only accomplish only so much. When several companies collaborate and leverage the messages of one another, the possibilities are endless. Plus, Conservation International is a neutral third party that companies can tap as a source of information when educating their employees and customers. Julie Blackwell is Senior Director Conservation International and Team Earth. You can learn more about CI and the Team Earth initiative at There s more! Click here to jump to the back of this book and read the entire interview, includ ing where Julie sees corporate collaborations going in the future. Investing in People, Investing for the Planet 2010 PUBLIC REPORT 15

16 SC Johnson 2010 Metrics Quick Reference We believe in taking a holistic approach to sustainable business. That's why this 2010 Public Report shares progress across both the environmental and social facets of sustainability. By 2008/09, 44 percent of our ingredients were rated "Better" or "Best." Page 7. 10% 4% 0-rated materials best 14% better Baseline 2000/01 1% 0-rated materials Results for 2008/09 18% best 73% acceptable 55% acceptable 26% better (kg of raw material by EC, 5 base categories) (kg of raw material by EC, 37 chemical and 12 component material types) By 2009, we had completed three of our four corporate energy and emissions goals. Page 14. Waste and Emissions Reduction GOAL: By 2011, for global manufacturing reduce combined air emissions, water effluents and solid waste by 50 percent versus the 2000 baseline, as a ratio to production. Greenhouse Gas Reduction U.S. GOAL: By 2011, reduce on an absolute basis U.S. GHG emissions another 8 percent versus the 2005 baseline % % ACHIEVED -40.5% -46.0%* -54.0% GOAL % ACHIEVED ACHIEVED GOAL -17% -29.1% Greenhouse Gas Reduction Worldwide GOAL: By 2011, reduce GHG emissions for all worldwide factories by 12 percent versus the 2000 baseline on an absolute basis. Global Renewable Energy GOAL: By 2011, source 40 percent of total electricity usage worldwide from renewable energy % ACHIEVED ACHIEVED ACHIEVED GOAL -15% -27% % % % % 39.7% GOAL * Our last Public Report indicated we held steady at -40.5% in 2008, however when all final global data was in, we had achieved a 46% reduction METRICS QUICK REFERENCE

17 Our community leadership encompasses time and financial support more than $180 million in contributions in the past 10 years. Page 32. General Manager Participation On Community Boards Fiscal Year 2008/ % 88% 87% Developed Markets Developing Markets PEOPLE PAGE 11: Tem simagnis autenda dolore doloriatur. Worldwide 190,000,000 Sed ea coneces equaercias id et Corporate 180,000,000 quidunt fuga. tenda dolore doloriatur. Sed ea cone 160,000,000 Philanthropic 170,000,000 Contributions 150,000,000 Rolling 10-year cumulative 140,000,000 contributions 130,000,000 (includes 120,000,000 SC Johnson 110,000,000 Fund, Inc.) in U.S. dollars. 100,000,000 Total SC Johnson Operations Organizing a Major Employee Volunteer Event Fiscal Year 2008/ % Developed Markets 76% 74% Developing Markets Total Here's a look at SC Johnson's direct and indirect energy consumption in Page 14. Direct Energy Consumption by Source 4% gasoline 5% palm shells 20% landfill gas 1% kerosene 5% fuel oil 2% diesel 2% LPG 60% natural gas Indirect Energy Consumption by Source 37% purchased renewable electricity PER 200,000 HOURS WORKED We continue to be highly committed to ensuring consistent safety, health and environmental conditions at all of our factories. Page 41. Worldwide Safety Performance Record Days Lost Medical Incidents 30 Lost Time Incident Rate YEAR ENDING Data provided in this report was prepared following the 2002 Global Reporting Initiative (GRI) Sustainability Reporting Guidelines except for financial and production data, which is business confidential and considered proprietary by this private family enterprise. Dr. H. Fisk Johnson, Chairman and CEO, S. C. Johnson & Son, Inc. 62% purchased electricity 1% purchased steam Questions about this report should be directed to Kelly M. Semrau, Vice President Global Public Affairs and Communication, at kmsemrau@scj.com or For further information regarding SC Johnson and its legacy of sustainability leadership, please visit TURN THE PAGE TO SEE OUR ALTERNATE COVER AND READ how SC Johnson is investing in people.

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19 Investing in People, Investing for the Planet They re two sides of the same sustainability strategy 2010 Public Report

20 About This Book There s more than one facet to sustainable business, and at SC Johnson, we believe in taking a holistic approach. That's why the printed edition of this Public Report had two covers and two ways to get to know SC Johnson. For this online edition, we've compiled the two sections into one handy PDF. Interested in social progress and public health? Start reading here. Interested in our environmental leadership? Turn to the first half of the book and our alternate cover, on page 1 of this online PDF. Either way, the whole book is about how SC Johnson is making the world better. SC Johnson s Holistic Approach to Sustainability Our sustainability efforts target four key areas where we believe we can make the biggest impact on quality of life, economic progress, our product mix and the planet. They are... Improving Our Products: Choosing more earthresponsible ingredients. Reducing Resource Use: Reducing energy consumption and greenhouse gas emissions. Strengthening Communities: Advancing social progress and public health. Protecting Families: Preventing insect-borne diseases. What s in This Half? SC Johnson at a Glance a look at our organization, stakeholders, and recent social and community milestones. PAGE 22 Celebrating Philanthropy marking the 50th anniversary of the SC Johnson Fund, Inc. PAGE 24 Strengthening Communities how we re building businesses at the base of the pyramid and investing in communities around the globe. PAGE 28 Protecting Families our continuing efforts to prevent insect-borne diseases through research, education and products. PAGE 34 Offering Great Workplaces how we re protecting the safety and well-being of our people, as well as our unique and respected culture. PAGE 38 4,102 gallons of wastewater flow saved and 894 pounds of greenhouse gas emissions avoided all by printing this report on paper manufactured with post-consumer fiber and renewable wind power. It s the equivalent of planting 573 trees. This book also uses eco-friendly inks and low-voc emitting water-based coatings. This cover reflects a few examples of how we re making a difference for families, from investing at the base of the pyramid, to helping fight insect-borne diseases, to offering inspiring workplaces. Find Out More Want to know more about SC Johnson? Visit our web site to find out about the company and its history. We're at S. C. Johnson & Son, Inc.

21 Making life better for people and the planet is our mission at SC Johnson. Part of being a responsible company is working hard to play our role in helping to solve the world s environmental problems and, importantly, also helping those who buy our products make more responsible choices. This is an opportunity that inspires us every day at SC Johnson. Making life better for people and the planet is our mission. Over the last year, we further reduced greenhouse gas (GHG) emissions, increased our use of renewable energy and invested in continually improving our products. We also have worked hard to provide more industryleading transparency for our consumers by labeling our products with their ingredients. We want our consumers to scrutinize the careful ingredient choices that we make so they can continue to trust our enduring brands. We have begun laying the groundwork for our next five-year strategy, which includes expanding our GHG focus to address the full product lifecycle and working in new ways to minimize landfill impact. But these efforts are just part of our sustainability story. In 2009, we also continued to fulfill the obligation for business to drive social progress. We celebrated the 50th anniversary of our philanthropic arm, the SC Johnson Fund, Inc., as well as ongoing philanthropy by the company that began decades earlier. We continued to invest in baseof-the-pyramid business co-creation. And, through investments such as our collaboration with the Bill & Melinda Gates Foundation, we further extended our efforts to prevent the insect-borne diseases that affect millions of families around the world each year. This year, our public report has two different covers and routes to get to know SC Johnson. But they converge on the same belief that business has both an opportunity and an obligation to make the world better by advancing environmental and social progress. By sharing our company s efforts across both the environmental and social facets of sustainability, this 2010 Public Report aims to highlight the many ways in which we re bringing this belief to life. It s a commitment we ve upheld for more than 120 years, and an aspiration shared by the 12,000 people of SC Johnson. I continue to be very proud of, and grateful for, the difference we re able to make. H. Fisk Johnson, Chairman and CEO Investing in People, Investing for the Planet 2010 PUBLIC REPORT 21

22 SC Johnson at a Glance 12,000 people working in 70+ countries to make the world better. Sustainability Objectives Our 2011 strategy calls for the achievement of these sustainability objectives: Environmental Continuously improving the raw materials scores of our products as measured by our Greenlist process. Reducing combined air emissions, water effluents and solid waste 50% by 2011, versus the 2000 baseline. Achieved in Reducing on an absolute basis U.S. greenhouse gas (GHG) emissions another 8% by 2011, versus our 2005 baseline. Achieved in Reducing on an absolute basis GHG emissions for all worldwide factories 12% by 2011, versus the 2000 baseline. Achieved in Sourcing 40% of global electricity from renewable energy. Social Contributing to public health by helping minimize the spread of insect-borne diseases through products and education. Developing partnerships and programs that create mutual value at the base of the economic pyramid and contribute to local quality of life. Supporting communities through philanthropy and employee volunteerism. Economic Continually growing by meeting consumer needs with innovative products of superior quality and value that enhance people s lives. Contributing to the economies of our host communities by providing employment and partnering with organizations to create growth and opportunity. Ensuring that new investment fits constructively into the economic development progress of each host country and local community. Our Stakeholders SC Johnson s values are articulated in This We Believe our statement of expectations for operations around the world. This We Believe is much more than simply a written document; it is the essence of who we are and how we operate. Failure to operate with integrity is not tolerated. You can find the full text of This We Believe at This We Believe explains SC Johnson s values in relation to the groups of people, shown below in blue, to whom we are responsible and whose trust we have to earn. In support of our principles, we also regularly interact with a variety of other external stakeholders, shown below in green. Consumers and Users General Public Neighbors and Hosts Employees World Community Customers and Partners Media Industry Associations Policy Makers NGOs Find It Online: Want to know more about SC Johnson? Visit our web site to find out about the company and its history. Plus, you can visit our online Public Report at for a list of the 2009 members of our Board of Directors. Organized for Sustainability At SC Johnson, we believe sustainable business is a company-wide responsibility. Because we approach sustainability holistically, it doesn t just get discussed by a green team. Rather, everyone shares the job of thinking about sustainability implications, and more than 130 people are formally focused on it. Here are just a few of the Johnson leaders who have sustainability targets as part of their accountability: Chairman and CEO President Chief Technical Officer President Developed Platform President Developing Platform Executive Vice President Worldwide Corporate and Environmental Affairs Senior Vice President Global Product Supply Senior Vice President and Chief Administrative Officer Senior Vice Presidents/Vice Presidents Business Units and New Product Development Plus, these functions are focusing on sustainability topics for the worldwide company each and every day: Environmental and Safety Actions Safety Assessment and Regulatory Affairs Research, Development & Engineering Safety/Health, Environment and Quality Sustainable Innovation Community Leadership Public Affairs and Communication Government Relations 22 SC JOHNSON AT-A-GLANCE

23 A Look at News from 2009 SC Johnson is a leading global manufacturer of household products. But despite 124 years and billions in sales, we still have a small town commitment to making a positive difference in the communities where we operate. Here s a brief look at a few of our accomplishments MARCH SC Johnson ranks sixth among the top 10 companies for disabilities and in the top 50 companies for diversity, according to the ninth annual list published by DiversityInc.com. SC Johnson launches the newly updated web site designed to not only offer product and corporate information, but also provide a place to share experiences and inspire one another. The site includes family-focused elements such as Family Economics, where external bloggers share ideas for getting more out of every household dollar and enjoying every minute with family. APRIL SC Johnson Mexico is honored with the Socially Responsible Enterprise Award from the Mexican Center for Philanthropy (CEMEFI). SC Johnson is one of only 10 companies in Mexico that have received the award for nine years in a row. SC Johnson joins Kroger s Giving Hope a Hand campaign to raise money to fight breast cancer. Working with Kroger, we pledge $280,000 to support non-profit organizations targeting this cause, and develop specially designed displays and packaging featuring Winnie Marquart, sister of Chairman and CEO Fisk Johnson, sharing her breast cancer survivor story. JUNE SC Johnson announces a 28-month partnership to benefit thousands of Rwanda pyrethrum farmers by helping them enhance the collection, drying and transportation of higher-quality pyrethrum flowers. The effort aims to enable farmers to increase their families income, as well as result in an increased supply of sustainable East African pyrethrum for key purchasers like SC Johnson. Pyrethrum is a natural insecticide that is used in some of SC Johnson s pest control products such as its Raid and Baygon brand insecticides. OCTOBER Despite the tough economy, SC Johnson employees contribute more than $855,253 to the annual United Way campaign in the United States. The SC Johnson Fund, Inc. matches the pledges dollar-for-dollar, meaning United Way-supported agencies receive more than $1.7 million from SC Johnson and its people. NOVEMBER SEPTEMBER SC Johnson is recognized as a top company for diversity by prestigious organizations including AARP (Best Employer for Workers Over 50), Working Mother magazine (100 Best Companies for Working Mothers), Hispanic Business Magazine (Top 60 Companies for Diversity), and the Human Rights Campaign (scoring 100 percent on the group s Corporate Equality Index, which rates companies on their fair treatment of gay, lesbian, bisexual and transgender employees, consumers and investors). SC Johnson announces its first commitment through the Clinton Global Initiative. Focusing on malaria prevention, SC Johnson will roll out an information, education and communication program in partnership with the Global Business Coalition on HIV/AIDS, TB and Malaria. The program draws from SC Johnson s experience combating malaria and will be designed to help NGOs, governments, businesses and community health groups support families at risk of contracting the disease. And throughout the year... from January through December 2009, SC Johnson companies were named to local employer-of-choice lists compiled by the Great Place to Work Institute, Hewitt Associates and others. Among the SC Johnson operations honored in 2009 were our companies in Argentina, Canada, Central America, Chile, Germany, Italy, Mexico, Turkey, United States and Venezuela. Investing in People, Investing for the Planet 2010 PUBLIC REPORT 23

24 Five Decades of Philanthropy The SC Johnson Fund, Inc We believe in having a positive impact on the communities in which we operate and the world at large. In the last 10 years alone, the SC Johnson Fund, INC. has allocated: > 411 grants totaling $51.7 million to organizations supporting social equity. > 100 grants totaling $13.2 million to organizations supporting economic vitality. > 73 grants totaling $6.7 million to organizations supporting a healthy environment. Follow links to more information wherever you see this symbol. 24 CELEBRATING PHILANTHROPY

25 Making Life Better for Families Throughout its history, SC Johnson has contributed to community and charitable efforts in the belief that the company cannot be healthy on the inside unless our communities outside are healthy, too. This commitment to philanthropy goes back to the company s beginnings. Herbert F. Johnson, Sr., son of company founder Samuel C. Johnson, helped set up a Racine community fund in the 1920s. Today, the SC Johnson Fund, Inc. continues that long tradition by matching employees United Way contributions in all the communities where we have employees throughout the United States. In keeping with this commitment, in 1959, the SC Johnson Fund was incorporated with the goal of supporting non-profit organizations and programs that have a positive impact on the communities in which we operate and the world at large. Grants that Drive Growth Grants are made to support existing non-profit organizations or programs focused on defined areas of interest such as the environment, social equity and economic vitality. Recipients must demonstrate broad-based support from, and collaboration with, other community groups. Total SC Johnson Fund, Inc. grant dollars allocated by interest area, % social equity 18% economic vitality 9% healthy environment Organizations submit a request for financial support to the Fund; its Board of Trustees reviews the requests several times a year and recommends support for various proposals. Ongoing Programs that Help The SC Johnson Fund also has ongoing programs to involve employees and the community in philanthropic efforts. For example, the Educational Matching Gift program matches employees and retirees cash or stock gifts to accredited educational institutions, up to $6,000 per year for each employee or retiree. Along with a Sons & Daughters Scholarship Program for dependents of employees and retirees, the SC Johnson Fund also established a Young Leaders Scholarship program to assist economically disadvantaged high school seniors of nonemployee families in the Among 45 new scholarship recipients in 2009, one was Eric Wagers, pictured here with his parents who are both SC Johnson employees. Racine area. Students who plan to continue their education in college or vocational schools can apply for renewable scholarships. More than $1.5 million in Young Leaders scholarships have been granted since In addition, the SC Johnson Fund in 2001 launched a Dollars for Doers program to recognize employee and retiree volunteer time. The Fund awards $250 to non-profit organizations for 40 hours of service there by employees or retirees in a fiscal year. More than $350,000 has been awarded so far. Milestones in Making an Impact The SC Johnson Fund, Inc. has granted millions of dollars to local and global organizations. Here are a few examples in recent years $3 million to 2002 $9 million to 2004 $2.2 million 2009 $3 million to The Nature Conservancy for conservation of biodiversity and promotion of compatible economic development in the Caatinga eco-region of Brazil. Racine Charter One, Inc., supporting 21st Century Preparatory School, a K-8 independent school established for Racine s diverse student population. to the Mayo Foundation for Medical Education and Research, to support the Samuel C. Johnson Program in the Genomics of Addiction. the Johnson Foundation at Wingspread, which this year is focusing attention on the emerging freshwater crisis in the United States. Investing in People, Investing for the Planet 2010 PUBLIC REPORT 25

26 50 Years of Help, a World of Difference Since its inception in 1959, the SC Johnson Fund, Inc. has provided hundreds of grants to non-profit organizations working to better their communities. Here are just a few examples of organizations that have received support from the SC Johnson Fund. Opportunities Industrialization Center The Opportunities Industrialization Center is a worldwide organization of local affiliates that provide employment-related services to dis advantaged members of the community. The OIC of Racine County focuses on working with young adults to help them stay in school, graduate and learn job skills. The OIC s Youthbuild Racine GreenTech Project provides hands-on, on-site training in green housing construction and rehabilitation. The program provides skills to participants while also increasing the supply of affordable, energy-efficient low-income housing. The program aims to transition at least half of participants into a construction trade apprenticeship and to graduate at least 75 percent in a GED or high school equivalency program. Since 1996, the SC Johnson Fund has provided $1,073,000 to the OIC of Racine County. Alliance for the Great Lakes The mission of the Alliance for the Great Lakes is to conserve and restore the world s largest freshwater resource using policy, education and local efforts, ensuring a healthy Great Lakes and clean water for generations of people and wildlife. To accomplish this mission, the Alliance works with residents, scientists, teachers, policymakers and others to preserve the Great Lakes. The program has several focus areas, including water quality, water conservation, habitat recovery, and education and outreach. The SC Johnson Fund has provided $66,000 in funding to the Alliance for the Great Lakes to develop a local Adopt-a-Beach program and to educate area youth about the importance of the Lake Michigan coastline. Feeding America Feeding America is a nationwide network of more than 200 food banks that help fight hunger in the United States. Feeding America Eastern Wisconsin feeds 330,000 people each year, including 105,000 children and nearly 33,000 seniors. The food bank distributes more than 12 million pounds of food and grocery products annually through 1,100 partner hunger relief agencies that serve the hungry directly. Each year, SC Johnson makes large product donations to Feeding America Eastern Wisconsin, for example contributing more than 60,000 pounds of products such as Ziploc brand sandwich bags in In addition, since 1996 the SC Johnson Fund has provided $60,000 in financial contributions. First Choice Pre-Apprenticeship Training First Choice Pre-Apprenticeship Training provides low-income, unemployed and underemployed individuals in Racine with skills necessary for the construction and skilled trade industries. The goal is to improve employment opportunities by providing the skills needed to obtain familysupporting wages. Hundreds of workers have completed the program and secured area construction jobs, including employment on a major Milwaukee freeway interchange and on a new building at SC Johnson s world headquarters. Since 2002, the SC Johnson Fund has provided $331,850 in funding to First Choice Pre-Apprenticeship Training, which is now managed by Human Capital Development Corp. 26 CELEBRATING PHILANTHROPY

27 Habitat for Humanity International Habitat for Humanity works to provide housing that is decent, safe and affordable to low-income families around the world. Local Habitat affiliates work to select homeowners, organize volunteers and coordinate house building. Homeowners are selected based on need, ability to pay a mortgage and willingness to help participate in the homebuilding process. Homeowners and volunteers build under trained supervision. Since its founding in 1976, Habitat has built, rehabilitated, repaired or improved more than 350,000 houses worldwide, providing shelter for more than 1.75 million people in 3,000 communities. Since 1989, the SC Johnson Fund has provided $255,000 in funding to Racine Habitat for Humanity to support the construction of new homes. The Johnson Foundation at Wingspread The Johnson Foundation at Wingspread is dedicated to serving as a catalyst for innovative public and private solutions. It operates the Wingspread Conference Center and hosts leading thinkers, conferences, workshops and seminars in an effort to have a great impact on environmental, community and other public policy issues. An entirely separate institution from the SC Johnson Fund and SC Johnson, the Johnson Foundation seeks to provide solutions on a regional and global basis in the areas of healthy environments and healthy local communities. Most recently, the Johnson Foundation announced the 2010 Freshwater Summit, a new initiative to focus attention on the emerging freshwater crisis in the United States, including pollution, water shortages, water infrastructure and water quality. In 2009, the SC Johnson Fund provided 3,000,000 in funding to the Johnson Foundation. Conservation International Conservation International is an international organization that works in more than 40 countries to protect the earth s resources. CI is committed to helping societies adopt a more sustainable approach to development by considering and valuing nature. CI has many focus areas, in cluding watershed and forest protection, biodiversity conservation, carbon sequestration and ecotourism. CI s mission includes empowering societies to responsibly and sustainably care for nature. As part of this mission, over the next three years Conservation International plans to support the development of a green economy in Rwanda. CI hopes the economy will serve as a regional model for integrating ecosystem services into development and conservation. The SC Johnson Fund, in collaboration with SC Johnson corporate giving, provided $725,000 in support to Conservation International this past year, of which $100,000 will support their Rwandan green development program. Racine Art Museum The Racine Art Museum (RAM) opened in 2003 as an outgrowth of the 69 year-old Charles A. Wustum Museum of Fine Arts (Wustum). RAM operates both locations, using Wustum as an education center and RAM as home to internationally recognized exhibitions of contemporary crafts. The museums are a popular destination for the 11 million residents of the Chicago-Milwaukee corridor and across the United States. In addition to six exhibition galleries, RAM has a world-class museum store and an art library. Zaitz Photography Both campuses offer a myriad of free community outreach programs and Wustum offers one of the largest studio arts programs of any Wisconsin museum. In the past 10 years, the SC Johnson Fund provided more than $5,700,000 to RAM s building fund, endowment, exhibitions and education programs. Investing in People, Investing for the Planet 2010 PUBLIC REPORT 27

28 Strengthening Communities Advancing Social Progress and Public Health Chairman and CEO Fisk Johnson recently visited Rwanda for an up-close look at the company s program assisting pyrethrum farmers, and to meet some of the people it s helping. We re working to drive positive social change, help consumers and improve quality of life. NEW THIS YEAR > Worked with BoP partners to further advance our joint Kenya initiative. > Progressed in our efforts to help Rwanda pyrethrum farmers increase their supply. > Continued contributing time and money to make communities better. Follow links to more information wherever you see this symbol. 28 STRENGTHENING COMMUNITIES

29 Behind This Flower is a Powerful Story In June 2009, SC Johnson kicked off a partnership in Rwanda that illustrates sustainable development at its best. By helping farmers enhance their ability to supply higher-quality pyrethrum (py) a natural insecticide extract of the chrysanthemum flower the effort helps increase farmers income while increasing the supply for SC Johnson and other purchasers. What We re Doing SC Johnson is working in active partnership with the U.S. Agency for International Development and Texas A&M University s Borlaug Institute to support farmer organization and more effective agricultural practices. As an example, the farmers are being assisted in establishing a cooperative to promote best practices for py collection and transportation. The two largest groups of 4,000 farming families are reorganizing into smaller groups of 30 to 50 growers, to allow for more effective and better management. With these smaller groups, the goal is to improve and accelerate services to farmers and to more quickly disseminate best practices. At the same time, the reorganization removes middlemen that were siphoning money from the py value chain, and instead keeps the profits with the farmers. Additionally, agronomic techniques are being improved to raise the income farmers can get from the same amount of land planted with py. Also, the effort is bringing global positioning system (GPS) and geographic information system (GIS) technology to develop a crop management system that will help ensure long-term benefits to the farmers and the growth of Rwanda s pyrethrum industry. What is Py? Pyrethrum, or py, is a natural, fast-acting insecticide extracted from the dried flower heads of chrysanthemums. Although it can be produced synthetically, py is known for the fact that it doesn t persist as long in the environment as synthetic py. SC Johnson uses it in some of its pest control products, such as its Raid and Baygon brand insecticides sold around the world. SC Johnson has purchased py from East Africa for more than 40 years. We worked with the Pyrethrum Board of Kenya to help build capacity, stabilize the supply and bring more reliable income to farmers there. We also partnered with the NGO KickStart to bring Kenya py farmers a manual water pump for irrigating crops with groundwater. We began exploring opportunities with Rwanda py farmers in As part of the effort, we re also providing health information through the co-ops to the farmers, to help their families stay healthy. What s at Stake The goal is to increase production each year through the end of 2011, while also increasing the py content of the yield. Despite various challenges so far, the 2009 harvest of dried py flowers delivered a yield with a 33 percent higher py content than in Also important, farmers in the region are engaging in the project and the acreage being planted is showing signs of increasing. Obviously these are good results in terms of increasing the sustainable supply of py for key purchasers like SC Johnson. But also important, as farmers see increased returns on their business, we re hopeful it will lead to important benefits for their families, such as more reliable or higher incomes that can enable improved nutrition, health and education. From BoP Pilot to Business-As-Usual On this page and the following, SC Johnson features investment projects with base of the pyramid (BoP) entrepreneurs and farmers. But we also have BoP projects that have evolved into profitable business-as-usual. In Nigeria, we launched a motorcycle sales pilot in 2006 to reach more traditional, lower-income distribution outlets. It became a profitable success for all involved. Similarly, a Ghana effort using push bikes designed for carrying cargo now provides a solid source of income for the bicycle distributors as well as for SC Johnson. By becoming strong enough to be self-sustainable, these efforts prove out the promise of BoP investments. Investing in People, Investing for the Planet 2010 PUBLIC REPORT 29

30 Progress from Partnership In 2006, with partner Carolina for Kibera, SC Johnson co-launched Community Cleaning Services (CCS) in Nairobi, Kenya, offering very low-cost cleaning services to families living at the base of the economic pyramid. Since then, CCS has achieved a solid business model cleaning public and private shared toilet facilities. Most toilets in Nairobi s poor neighborhoods are shared by multiple households and are poorly maintained. Neighbors now can hire CCS to clean their toilet and share the cost, meaning regularly maintained, more sanitary toilets for about 17 U.S. cents per household. Fourteen CCS teams currently service around 225 facilities per week. Collaborating for Continuous Improvement Click here to jump to the back of this book and find out more. Focusing on continuous improvement, since 2009, CCS and a team from SC Johnson have been working together, exploring ways to enhance the toilet cleaning processes, reduce costs and drive sales growth. A collaborative approach was key, as was the addition of a team member with R&D expertise. Through hands-on research, process analysis and iterative prototyping, the teams were able to identify ways to increase cleaner productivity by 60 percent and cut cleaning time by 35 percent. In addition, they collectively devised a solution to CCS s top customer issue: odor control. A Fresh Solution Odor is an issue in any toilet area, but especially in bathrooms shared by multiple households. The CCS team knew this, and that clients would pay more for toilet cleaning if odor control was included. But a challenge was that air fresheners tended to disappear or be taken from the bathrooms shortly after placement. Together, we found an effective, low-cost solution: an SC Johnson toilet gel product distributed under the Duck and Scrubbing Bubbles brand names. Designed to be stamped out of a dispenser in developed market-type toilet bowls for cleaning and odor control, the gel turned out to have great potential for the developing market, too. A dollop of gel in the toilet area freshens the air for seven to 10 days, and in a form that stays put. In addition, it allows SC Johnson to repurpose excess gel from the routine manufacturing process. By providing a barrel of the gel to CCS instead of disposing of it, we cut material handling and disposal fees. The gel is then distributed by the pound to the entrepreneurs, who transfer it to pastry bags that are reused repeatedly for individual applications. The end result is more satisfied clients, higher profits for the cleaning teams, and less packaging and waste. More Opportunities on the Horizon To continue leveraging the momentum of the CCS effort, the SC Johnson team checks in regularly and is helping explore other opportunities. Up-and-coming efforts include quantifying the sanitation impact of CCS s service to prove the value of the cleaning, and introducing a graphical, step-by-step training manual to help train new cleaners. In addition, learnings from this effort will be used in other BoP initiatives moving forward. For example, SC Johnson is undertaking an initiative in Ghana to create a sustainable business model related to malaria prevention. Read more about it on page STRENGTHENING COMMUNITIES

31 Turning Problems into Opportunities Here s an example of a process opportunity that the CCS and SC Johnson teams co-innovated. Problem When cleaning walls, water and dish soap would be splashed onto the wall by hand. Water would run down the wall and drain away, requiring even more water to complete the cleaning task. Solutions Teams now mix the water and cleaner into a foam by pouring them back and forth between two buckets. The foam stays on the wall for a thorough scrubbing, and requires about half as much water and cleaner. The team has since identified the potential to switch from dish soap to SC Johnson s Mr. Muscle brand low-cost kitchen cleaner. It cleans well but without as many suds as dish soap, meaning less rinsing is required. Results By using less water, the cleaners can make fewer trips to the water source, which is often distant. This increases the number of sites that can be cleaned in a day and reduces costs since most water sources charge a fee. Water use is down 57 percent and local team profits can more than double, particularly during frequent droughts and soaring water costs. Plus, there s a benefit for SC Johnson since the more successful cleaner is an SC Johnson product. Measuring Success SC Johnson recently provided the Community Cleaning Services team trainer with a germ meter to measure toilet-area microbiological levels. The meter is for quality control and to help show potential clients the sanitation benefits of toilet cleaning. A swab test before and after cleaning allows CCS to measure microbial improvement... and demonstrate some impressive results. Germ Level Comparison Germ Level (RLU x 1000) BoP Bathroom Before CCS Cleaning 50 BoP Bathroom AFTER CCS Cleaning 10 Typical Routinely Cleaned Developed- Country Bathroom *Germ level is measured by the amount of organic material that remains on the surface. RLUs are Relative Light Units. A chemical on the germ monitor swab causes organic materials to glow and the monitor reads the Relative Light Units, or the amount of light emitted Cell Phone Expert Q&A Uncovering Insights, Creating Solutions A Q&A with SC Johnson s Jeremy Knopow Q You were the first SC Johnson team member with an R&D background to partner with the CCS team. How do you think your perspective was different? As a designer, my first instinct is to approach problems from a user-centered point of view. To do that, you really need to walk in the user s shoes and that meant living and working with the cleaning teams as well as spending a lot of time interviewing their clients. I also interviewed the cleaning teams to understand what they ve learned along the way and how they ve improved processes. For example, one team learned odor control was an issue. That eventually led to the new odor control offering. Experience with iterative prototyping helped too, because we were translating needs into tangible products or processes that we could test and modify as necessary. Jeremy Knopow is a Senior Research Engineer and Industrial Designer at SC Johnson. He most recently visited Kenya in January 2010 and returns this summer. There s more! Click here to jump to the back of this book and read the entire interview, including Jeremy s perspective on how this initiative has affected the lives of the entrepreneurs. Investing in People, Investing for the Planet 2010 PUBLIC REPORT 31

32 Acting in Our Communities As 2009 brought another year of challenges for communities around the world, SC Johnson once again sought ways to lend a hand to those in need. We believe unwavering support is fundamental to being a responsible and resilient member of our communities around the globe. Support in Many Forms Along with global objectives for philanthropy and social progress, SC Johnson also has formal Community Leadership Guidelines in place to help drive accountability at the local level. Each SC Johnson operation has these objectives: Demonstrate senior management leadership in the community by having the General Manager hold at least one board-level membership with a major local community non-profit organization. Our Commitment in Action In addition, many SC Johnson employees share their time with worthy organizations such as Toys for Tots, the Salvation Army and the Racine Zoo, community food banks and other service organizations. Plus, we re proud that our employees give gener ously to their communities. In 2009, our United Way campaign in the United States raised more than $855,253 in employee contributions. With a match by the SC Johnson Fund, Inc., we provided community support of more than $1.7 million. Give to local charities at a target of 2 percent of pre-tax profits. Promote and coordinate at least one significant employee volunteer effort in the community each year. Measuring Our Progress We continue to make progress each year on our community leadership and philanthropy goals. Here s a look at our accomplishments for fiscal year 2008/2009. General Manager Participation On Community Boards Fiscal Year 2008/ % 88% 87% Developed Markets Developing Markets Total SC Johnson Operations Organizing a Major Employee Volunteer Event Fiscal Year 2008/ % Developed Markets 76% 74% Developing Markets Total Worldwide Corporate Philanthropic Contributions Rolling 10-year cumulative contributions (includes SC Johnson Fund, Inc.) in U.S. dollars. 190,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, STRENGTHENING COMMUNITIES

33 Making a Difference for People Whether supporting schools, reaching out to those affected by crises or promoting employee volunteerism, SC Johnson works to make our communities better because we are there. Here are a few examples. Helping Haiti Within days of the devastating earthquake that crippled Haiti, the SC Johnson Fund, Inc. donated $20,000 to the American Red Cross s Haitian relief efforts and committed to match SC Johnson employee contributions up to $15,000 over the next month. Due to overwhelming participation by employees, the limit was soon increased to $20,000. In addition, many subsidiaries around the world contributed to Haiti relief in a variety of ways. The combined companywide efforts brought in more than $160,000 in funds to help Haiti recover, a true testament to the values of the people of SC Johnson. Supporting Breast Cancer Awareness In September 2009, SC Johnson joined retailer Kroger s efforts to battle breast cancer during its Giving Hope a Hand campaign. Winnie Marquart, sister of Chairman and CEO Fisk Johnson, played a key role by sharing her personal story as a breast cancer survivor to help educate and inspire. Working with Kroger, SC Johnson pledged $280,000 to support nonprofit organizations that address the cause. The campaign was focused on finding a breast cancer cure and helping women and their families find the treatment and resources they need to face their illness head on. We also developed specially designed displays and packaging that featured Winnie s breast cancer survivor story and offered shoppers pamphlets from the American Cancer Society. In addition, SC Johnson arranged for a specially equipped medical van to provide free mammograms at Kroger stores in underserved communities around Cincinnati, Ohio, as well as at an event at Kroger s headquarters. Offering Support across the World Here are just a few examples of how SC Johnson operations supported their communities over the past year. SC Johnson Canada launched a Community Enrichment Team to connect employees with volunteer oppor tunities. For example, employees have already helped complete three Habitat for Humanity houses. SC Johnson Italy contributed to 10 organizations chosen by employees, pro viding help to efforts including medical research, support of the disabled and defense of children s rights. SC Johnson Japan made contributions to 12 institutions that support fatherless families, and also to Kanagawa Prefectural Children s Hospital for medical devices and equipment. SC Johnson Home Hygiene Products in Indonesia con tributed $120,000 to UNICEF to help build clinics in a village in Java. The clinics teach new mothers about early child development and care. SC Johnson Mexico provided financial support to 18 foster homes for young girls in need, benefitting 2,061 girls. SC Johnson South Africa continued its tradition of giving financial support to child care programs at Leutlwetse preschool. SC Johnson Brazil contributed to Associação Caatinga, which aims to preserve plant and animal diversity in the Caatinga ecosystem in northeast Brazil. SC Johnson Argentina organized a volunteerism program for employees and retirees. It promotes 11 volunteer opportunities across education, social and environmental needs. SC Johnson Spain helped with the reforestation of local fields, with employees planting 200 trees and shrubs and financial support for a year of watering and care. Investing in People, Investing for the Planet 2010 PUBLIC REPORT 33

34 Protecting Families Helping Prevent Insect-Borne Diseases We target a key public health issue with effective pest control products and education about avoiding insectborne diseases. NEW THIS YEAR > Launched a study with the Bill & Melinda Gates Foundation to help determine product-based solutions to combat malaria, as well as a Gates/Center for Sustainable Global Enterprise partnership to create a sustainable business model that addresses malaria. > Continued educating about insect-borne diseases across many countries. Follow links to more information wherever you see this symbol. 34 PROTECTING FAMILIES

35 Investing in Education and Prevention According to world health authorities, malaria kills more than a million people every year, and there are as many as 50 million dengue infections worldwide annually. Yet these diseases are preventable simply by protecting families from the insects that can transmit the infections. As the leading marketer of household insect control products worldwide, we re working every day to make products that help protect people, and to educate about how to avoid insect-borne illnesses. Along with our ongoing efforts in this area, in 2010 SC Johnson announced a collaboration with the Bill & Melinda Gates Foundation (BMGF) to combat malaria. Together, we are supporting two research programs designed to study and advance the use of consumer products in the fight against the spread of the disease. One Collaboration, Two Efforts One effort is a scientific research study by a consortium of Indonesian research institutions led by Hasanuddin University, under the guidance of Dr. Din Syafruddin. The study aims to demonstrate the effects of consumer products in repelling malaria-infected mosquitoes. Funding is coming from BMGF, with product resources and in-kind personnel support from SC Johnson. This effort is expected to last at least four years. The second effort in collaboration with BMGF is being co-conducted with Cornell University s Center In Sumba, Indonesia, the study site, families live in huts that mosquitoes can easily penetrate, with saline lakes nearby that offer a breeding ground for mosquitoes. Inset, a typical sleeping area. for Sustainable Global Enterprise. The project, led by Dr. Mark Milstein and Dr. Erik Simanis (below) as well as SC Johnson s base of the pyramid business development team and SC Johnson Ghana, will work to develop a consumer-level, market-based solution to malaria infection among at-risk populations at the base of the economic pyramid. The ultimate goal is to create a business model that will address malaria infection while creating value for all participants. Expert Q&A Co-Creating New Businesses A Q&A with the Center for Sustainable Global Enterprise s Erik Simanis Q You ve been involved in the Base of the Pyramid (BoP) movement since its start. What have you learned? The BoP has evolved considerably. When the idea was first proposed that there were business opportunities in serving the low-income sector of billions of people, companies saw it as an opportunity both to help people and tap new markets quickly. There were a couple of success stories like Unilever s sachet-packaged detergent in India that really helped boost interest. So a number of global companies jumped in and started researching opportunities. Many came up with great projects with a lot of market research behind them, like helping families clean their drinking water. But when the projects were launched, most not only failed to generate any profit, but there was little consumer interest. As a consequence, a lot of BoP ventures were closed down or shifted into philanthropic efforts. The key learning was that those quick wins like Unilever s are few and far between. That only happens when there is an existing consumer market where you can get on the ground, do good market research, and turn out a better product. In most cases, like with clean water, there isn t an existing market. The products just don t register with consumers people aren t accustomed to valuing their benefits, nor integrating them into their routines and lifestyles. Doing market creation requires a different strategy and innovation process than does market entry. Dr. Erik Simanis is Managing Director of Market Creation Strategies at the Center for Sustainable Global Enterprise at Cornell University. There's more! Click here to jump to the back of this book and read the entire interview, including how BoP efforts are evolving. Investing in People, Investing for the Planet 2010 PUBLIC REPORT 35

36 Creating Prevention Awareness Across Markets To achieve an ongoing, sustainable positive impact, successful efforts must be good for people and for business. With that in mind, we work to educate families about avoiding insect-borne diseases and show how our brands can make a difference. Here are a few examples. Indonesia Dengue Campaign Helps Communities be Proactive, Involved This year, Johnson Home Hygiene Products (JHHP) in Indonesia is conducting a multi-pronged dengue campaign to create awareness and educate consumers, while strengthening our Baygon brand s position as the best solution to fight the insect-borne disease. In coordination with local health authorities theme of starting with yourself to proactively prevent dengue, JHHP sponsored a kick-off education event, complete with a giant mosquito mascot. Training targeting 5,000 people from 40 areas of Jakarta, Bandung, Semarang, Jogjakarta and Surabaya focused on prevention, first aid for dengue infections and Baygon product information. Additionally, a portion of Baygon sales was donated to dengue education and prevention programs, and in partnership with a local NGO we supported fogging in areas where high dengue incidence was reported. Another Year Making a Difference in the Philippines Marking its twelfth consecutive year, SC Johnson Philippines Iwas Dengue campaign continued to create awareness of the dangers of dengue, reaching more than a million households. The Baygon - OFF! Iwas Dengue advocacy campaign aims to educate about the importance of proper household and community care in the fight against dengue. In partnership with ABS-CBN Foundation, this year an anti-dengue medical mission was conducted in 14 identified dengue hotspots nationwide. Every purchase of Baygon or OFF! products helped fund the medical mission in the identified dengue hotspots. The medical mission included lectures on dengue prevention, children s activities, as well as distribution of medicines and samples. In addition, the campaign included the three pillars that have become fundamental to Iwas Dengue: a hotline to request free spraying in areas with outbreaks, house-to-house spraying teams distributing leaflets and product samples, and educational caravans about dengue prevention. Educating on Dengue and Malaria in India For the third year in a row, in 2009 our ALLOUT brand in India led a dengue protection drive in major metropolitan areas. The program featured free fumigation, in-store activity and an ALLOUT truck conducting contests and quizzes about disease protection. In addition, since July 2008 we have been working with the NGO VHAI to expand malaria education and support in the Guwahati area. The effort has included health events, mobile clinics, free mosquito nets and the distribution of educational materials. Fighting Malaria with UNICEF For the third consecutive year, in 2010 SC Johnson France s Baygon brand and UNICEF France teamed up to fight malaria as part of UNICEF s Central African Republic program targeting malaria and other health issues for mothers and young children. From March through August, SC Johnson France is donating a portion of every Baygon brand sale to the effort. In 2009, contributions from the Baygon partnership surpassed $160,000, and helped provide more than 225,000 children with vaccines, distribute mosquito bed nets and facilitate other health support. The 2010 program has included a number of interactive and social media components such as the web site and Facebook. Fans actively participated in the Mosaic Against Malaria, which aggregated users photos to create a unique symbol of the collaborative fight against malaria. Drawing Attention to an Important Health Issue In its sixth year, SC Johnson Thailand s anti-dengue campaign continued to drive awareness of the disease with on-the-street events and a road show to workplaces, as well as a $55,000 product contribution to the Thai Red Cross Society to provide repellents to people living in rural areas. 36 PROTECTING FAMILIES

37 Making Information More Accessible This past year, SC Johnson got underway with its first commitment as part of involvement in the Clinton Global Initiative an IEC intervention. Partnering with the Global Business Coalition on HIV/AIDS, TB and Malaria (GBC), we created an online repository of training materials and information for NGOs, governments, businesses and community health groups working on anti-malaria educational initiatives. The effort draws from learnings gained in SC Johnson s partnership in the Healthy Children, Healthy Homes program, a collaborative effort between SC Johnson, South Africa s National Department of Health, Medical Research Council and RTI International. This community- Products that Protect At SC Johnson, we work every day to make products that protect families while meeting different needs. Protection While Sleeping Electric mats offer one night's protection using a treated mat inserted in a heating device. Liquid electric area repellents offer many nights of continuous mosquito protection. Mosquito coils are the most affordable area repellent and last up to 10 hours. Protection On the Go New OFF Clip-On is an innovative personal repellent that uses a fan to circulate protection around a person for up to 12 hours. based malaria education program has now reached more than a million South Africans, and has been expanded into Mozambique and Ghana. Part of SC Johnson s role in that program was to help develop information, education and communication (IEC) materials. Now, we ve brought the learnings gained there to the global level, with a new Anti-Malaria IEC program that is available online at GBC s web site. This IEC intervention takes a train-the-trainer approach to distributing key public health messages around malaria prevention and treatment. Training materials in English, Portuguese, French and Kiswahili explain how to effectively use large flipchart ma terials that avoid language and reading barriers by communicating through pictures, such as those shown above. Access to "take-home" educational materials will also be provided. We re hopeful that this model of providing resources to self-motivated organizations and individuals will help broaden the reach of this important educational effort. Expert Q&A Advocating and Partnering for Results A Q&A with the Global Business Coalition on HIV/AIDS, TB and Malaria s Neeta Bhandari Q As an organization, what public health issues worry you most? The issues of HIV/AIDS, TB and malaria continue to kill thousands every day and limit the potential of economies throughout the developing world. There are 33 million people living with HIV/AIDS globally; every 30 seconds a child dies from malaria; and last year, TB killed one person every 20 seconds. The effects of these epidemics are devastating and business has a critical role to play in ending them. Business is crucial in helping to turn the tide against HIV/AIDS, TB and malaria, and it will only be through collaboration and coordination, that we will fight these diseases faster. Companies contribute in different ways: leveraging their core competencies, contributing to advocacy efforts, developing robust workplace policies and programs, and providing their skills and assets to fill critical gaps. Neeta Bhandari is Senior Manager, Membership & Advisory Services, for the Global Business Coalition on HIV/AIDS, TB and Malaria. Q How can GBC corporate members help? Why is such private/public/ngo collaboration important? There s more! Click here to jump to the back of this book and read the entire interview, including Neeta s perspective on future health issues. Investing in People, Investing for the Planet 2010 PUBLIC REPORT 37

38 Offering Great Workplaces Committed to SC Johnson Principles Including Respect and Inclusion As a family company, we believe in doing what s right for the people who make this company a success. NEW THIS YEAR > Recognized for the 10th year among FORTUNE magazine s 100 Best Companies to Work for in America, along with being recognized in numerous other countries. > Opened Fortaleza Hall, a new building at our headquarters that symbolizes our unique history of innovation, creativity and adventure. Follow links to more information wherever you see this symbol. 38 OFFERING GREAT WORKPLACES

39 A Commitment to People In good economic times and bad, from Buenos Aires to Budapest to Bangkok, SC Johnson believes in doing what s right for the families who use our products in their homes, and the people of SC Johnson who create them. We believe this starts with a commitment to the people of SC Johnson to ensuring a culture of fairness, respect and innovation; to fostering inclusion so that all opinions are valued and everyone can do their best work; and to maintaining global operational standards designed to ensure the safety and wellbeing of SC Johnson people worldwide. That s why along with our This We Believe statement of corporate values (see page 2), we have formally pursued diversity efforts for nearly 20 years and have had a global Safety, Health and Environment commitment for decades (see page 21). We have clear and well-communicated policies on topics from safety to legal compliance to work hours. Understanding and Engaging We also conduct annual global employee opinion surveys to maintain a pulse on topics including integrity and trust, development and training, and work/life balance. In 2009, once again our overall Employee Engagement score measured strong at 84 percent, which we see as a key to winning in today s challenging business environment. We believe this engagement comes from our commitment to people both at work, and outside of work, too. Starting with paid vacations in 1900, we ve introduced numerous helpful benefits such as award-winning child care, concierge services and more. Employer Milestones Recognition since July 2009 Great Place to Work Recognition SCJ Argentina: Recognized for the 8th time. SCJ Canada: Recognized for the 5th time. SCJ Chile: Recognized for the 5th time. SCJ Germany: Recognized for the 7th time. SCJ Italy: Recognized for the 8th time. SCJ Latin America: Recognized as a top 100 Company in Latin America. SCJ Mexico: Recognized for the 9th time. SCJ Poland: Recognized for the first time. SCJ United States: Recognized for the 10th time. SCJ Venezuela: Recognized for the 5th time. Other Employer Recognition Among Diversity Elite 60 list of Hispanic Business magazine. An AARP Best Employer for Workers Over 50 for the 4th year. Perfect score on Human Rights Campaign Corporate Equity Index. 21st year among Working Mother magazine s 100 Best Company for Working Mothers. Number 41 on DiversityInc.com Top 50 Companies for Diversity list, and 7th among the top 10 companies for people with disabilities. Expert Q&A Dedicated to Diversity and Inclusion A Q&A with SC Johnson s Maria L. Campbell Q It s been nearly 20 years since SC Johnson established its Office of Diversity. What key milestones stand out? Looking back, I d say SC Johnson has had three a-ha moments when thinking about diversity. The first was the realization that diversity was a business imperative versus just an HR initiative. We rely on selling products to consumers and making a difference in their lives and in their family s lives. It s important for us to focus on how diversity connects with the business and to our consumers and customers. We are a company that not only makes products for consumers, but a company that cares about the consumers we make products for. Maria L. Campbell is Director of Diversity for SC Johnson. You can find out more about our diversity commitment at There s more! Click here to jump to the back of this book and read the entire interview, including the other two a-ha moments Maria shared. Investing in People, Investing for the Planet 2010 PUBLIC REPORT 39

40 Engaging and Inspiring In January 2010, SC Johnson opened its first major new building on the company s international headquarters campus since the 1950s. And what a building it is. Offering Inspiration and Community Fortaleza Hall includes an array of features designed to energize and inspire, such as a vertical garden with 79 species of Central and South American plants, a polyconic mosaic map that uses four different types of end-grain wood that is Forest Stewardship Councilcertified, and a soundscape that brings to life the flora, fauna and street sounds of Fortaleza, Brazil. Fortaleza Hall is a testament to SC Johnson s unique history of innovation, creativity and adventure. It honors the late Sam Johnson, the fourth-generation leader of the company, and his tremendous leadership in our innovation, geographic expansion and environmental legacy. Designed by world-renowned architecture firm Foster + Partners, Fortaleza Hall is a fitting partner to the innovative designs that already exist at our headquarters campus, including the Frank Lloyd Wright-designed Administration Building and Research Tower. Fortaleza Hall was also an investment in the local economy, with 21 local companies hired for the project. Remembering a Timeless Trip In the middle of Fortaleza Hall soars Sam Johnson s Carnaúba airplane, an enduring symbol of family, adventure and leadership for the company. The twin-engine S-38 amphibious plane is a replica of the S-38 flown by H.F. Johnson, Jr. in 1935 on an expedition to Brazil to find a sustainable source of wax for the company. In 1998, Sam and his sons, Fisk and Curt, recreated that historic expedition, in a trip that rekindled the company s spirit of adventure. As Chairman and CEO Fisk Johnson noted upon the opening of Fortaleza Hall, This plane is an enduring symbol of courage, of adventure and preservation. It is also a reminder that venturing into the unknown is often worth the risk. Importantly, the building also acts as a gathering place for the people of SC Johnson, housing employee services including the company cafeteria, concierge service, bank, fitness center, coffee shop and Legacy Gallery, a space where visitors and employees alike can learn about the principles and spirit that guide our company. Respecting the Environment The building was constructed under the U.S. Green Building Council s Leadership in Energy and Environmental Design (LEED) certification guidelines. For example, it uses materials such as low-voc paints and flooring with recycled materials. It also features energy-efficient lighting and water-efficient fixtures. In addition, Fortaleza Hall includes unique sustainable features such as a customized air distribution system that requires less air to be heated or cooled, and a cistern that captures rainwater from the building s drainage system and reuses it for campus landscape watering. The Frank Lloyd Wright Library and Reading Room In the northeast corner of Fortaleza Hall, this unique space pays tribute to the architect who has been inspiring employees and visitors at SC Johnson s headquarters for more than 70 years. The Frank Lloyd Wright Library and Reading Room houses hundreds of Wright s sketches, notes and correspondence some being made public for the first time thanks to the generosity of the Frank Lloyd Wright Foundation. The library opened with more than 300 books about Wright and his career, 250 original drawings and blueprints, 125 photos, 140 letters and more. 40 OFFERING GREAT WORKPLACES

41 Upholding Standards, Ensuring Safety From guidelines and training to driving employee accountability, SC Johnson is working to ensure Safety, Health, Environment and Quality standards are met around the globe. Protecting the health, safety and well-being of our people is a top priority for SC Johnson. We have global standards for our manufacturing facilities that help ensure consistent and equivalent working conditions for people worldwide. In addition to meeting SC Johnson standards, compliance with local laws and regulations is mandatory. And when company guidelines are more protective than local regulations, the SC Johnson requirements must be met. SC Johnson s corporate Safety, Health, Environment (SHE) and Quality team, supported by external partners and employees around the world, delivers policies, guidelines, training, technical support and auditing, to ensure this happens. But we re aiming to do even more, by further driving understanding that safety is everyone s responsibility. "Safety is the point of entry for every activity at SC Johnson, and it ought to be the first point on everyone's priority list, too," says David Kaissling, Vice President - Global Manufacturing. Over the years, we ve had great results from the focus on compliance, audits and improvements. But we want to do even more. Ninety-five percent of injuries result from workplace behaviors. Our goal is to further increase awareness among employees and get everyone involved in the safety program, to continue driving down our incident rates to industry-leading levels. Tracking Needs and Improvements As we pursue continuous improvement, auditing and educating remain key. Each SC Johnson factory is audited at least once every five years, with SC Johnson and external auditors reviewing a total of 74 criteria in nine key areas including employee safety, industrial hygiene, air/water and waste management, fire protection, emergency response planning, and more. Following an audit, an SC Johnson operation has 60 days to respond in writing with a description of actions to be taken, individual responsibilities and a timeline for completion. Follow-up reports are due every three months to the worldwide SHE team. All actions must be completed in 12 months unless capital spending is planned. Four times a year, the SHE team presents outstanding issues and resolution plans to the company s highest management team to ensure that progress continues to be made. Worldwide Safety Performance Record PER 200,000 HOURS WORKED Days Lost Medical Incidents 30 Lost Time Incident Rate YEAR ENDING Expert Q&A Investing in Safety Makes Sense A Q&A with SC Johnson s Franklyn Ericson Q How do you keep up with local SHE regulations to ensure SC Johnson s standards are aligned? We use independent third-party consultants to set up and execute each audit, and require them to be up-todate with current requirements and regulations. We also use an outside party to update our protocol for SHE requirements in that country. Our consultants also work with in-country SHE professionals to provide expertise in local laws. Using third-party consultants along with our internal SC Johnson auditors has been fundamental to our audits since We do this to get objective opinions of our plants, to make us aware of SHE auditing best practices we can adopt to keep our processes up-to-date, and to get consistent multi-year audit opinions that are tied to valid and current protocols for each country. Franklyn Ericson is Director of Worldwide Safety, Health and Environmental Operations for SC Johnson. There s more! Click here to jump to the back of this book and read the entire interview, including thoughts on best practices. Investing in People, Investing for the Planet 2010 PUBLIC REPORT 41

42 Find Out More Looking for the rest of the story? Following are the continuations of Q&As and other stories that began earlier in the book. So, please, read on! Enabling Better Decision-Making: A Q&A with SC Johnson s Dan Lawson (continued from page 7.) Q Do you continue to see progress on the company s overall Greenlist results? Progress is always a challenge, but we ve made a lot of improvements, such as removing PVC from our packaging and eliminating chlorine-bleached paperboard. We have eliminated materials we considered to be 0-rated, even though they met legal and regulatory requirements, such as the insecticides DDVP and propoxur. And in 2008, we started working with our suppliers to have them eliminate phthalates from the fragrances they provide for our products. Q These efforts focus on formula; is SC Johnson exploring other elements of the product footprint? That s a good question because, as we like to say, it s not just about the liquid in the bottle. It s about the holistic product experience, and we believe there are many ways to lighten a product s footprint. One example is dematerialization meaning not just using better materials, but less of them. That applies to the ingredients in a formula, of course, but it s also about other aspects such as packaging and even how items are displayed on shelf and used in the consumer s home. These are all elements of our environmental strategy. While the Greenlist process focuses on products, our overall environmental commitment continues to take a very broad view. For example, you can read about our participation this year in WRI and WBCSD s Scope 3 (Corporate Value Chain) Accounting and Reporting Standard pilot on page 13. Making Measurement Matter: A Q&A with ClearCarbon s Kyle Tanger (continued from page 13.) Q Why is it important to have global standards for measuring and reporting greenhouse gas (GHG) emissions across corporate and product supply chains? Environmentally conscious companies have been looking for ways to reduce the amount of energy incurred within the supply chain in order to reduce their carbon footprints and reduce costs. However, there haven t been common standards for measuring and reporting. Setting global GHG standards creates a common language, one that gives consistency across similar companies, which in SC Johnson s case would be other consumer product manufacturers. It also provides common terminology that suppliers can use when talking with their business partners and other suppliers. It s easier to aggregate data if everyone uses the same nomenclature. Q In the past, many companies have published lifecycle GHG data calculated using their own protocol. Why is it important to have an agreed-to protocol standard used by all? This goes back to the importance of having a common language and standards, which produces data that are more meaningful. In the past, companies have shared the results of their product lifecycle analyses, but not necessarily the steps or components that went into the calculation. With the common language and standards, you know what went into it and can apply data to improve your own footprint. Q What value do partnering companies, such as SC Johnson, offer for the GHG Protocol initiative? The top thing companies like SC Johnson offer is credibility and practical knowledge. SC Johnson has a long history of corporate responsibility. There is no substitute for real experience. The critical feedback provided by SC Johnson and companies like it will make this protocol accurate, applicable and useful. Without leading companies participation, the protocol could be without a practical focus and be based on data that aren t useful or don t exist. The result would be an initiative that wouldn't have widespread adoption and it won t drive change. Q How were companies selected to participate in testing the draft protocol? Why is testing necessary? Companies volunteered, with many of them stepping forward because they realize the importance of the 42 INVESTING IN PEOPLE, INVESTING FOR THE PLANET

43 protocol. The World Resources Institute narrowed down the field of volunteers, ultimately selecting companies that would represent a range of different industries as well as global industry leaders who could impact the protocol development process through their experience. Testing is necessary to make sure the protocol is practical, and that results are actionable. The testing process also is an opportunity for stakeholders to have a voice in the process. Stakeholders include governments, NGOs, academia, subject matter experts and companies/industry. Q Is Scope 3 the final stage/step of measuring and reporting GHG emissions, or will it lead to new measurements/reports (perhaps ones not yet even imagined)? It would be difficult to imagine too many more protocols. Instead of creating new protocols, I think there will be refinements of the most impactful components of each stage. Scope 1 applies to direct emissions from sources controlled by the company. Scope 2 are indirect emissions such as purchased electricity, where emissions are created during the generation of electricity from fuels used by the power company. If you think about it, Scope 3 emissions are like the rest of the world for a company. They are emissions created because of the company s activities but not directly by the company, such as emissions created within the supply chain or at the end of the product lifecycle. Continuing to hone and refine the protocol will help companies see where their actions will have the greatest impact. Q How will you, as an organization, know if the GHG protocol is successful? If the information doesn t lead to better decisionmaking, then it isn t a success. That is the ultimate grade. Another aspect of success is the distribution and sharing of knowledge. Much of what companies know about their carbon footprints today was calculated using industry averages and broad information. General information doesn t yield the precision and level of confidence companies really need for effective and confident decision-making. The end goal is for businesses to gain clear insight into all of the components of doing business, even those components that are outside of their direct control, and then use those insights to make business better. This valuable knowledge makes it possible for companies to achieve sustainability, make higher-quality products, and offer a better price. Smarter Shipping, Lower Emissions (continued from page 15.) Along with the 2009 advances explained on page 15, SC Johnson continues to use rail cars, whenever feasible, to transport propellants, alcohols, solvents, plastics and other items into our manufacturing plants. One rail car is equal to about six tanker trailers. We re also promoting shorter-haul trips and increasing the use of day cabs truck cabs specifically designed for such short runs and continuing to enforce our anti-idling policy at all SC Johnson facilities. After seven minutes, trucks must turn off their engines. Here s a look at SC Johnson s progress with intermodal transport. SC Johnson Intermodal Shipping Miles shipped via intermodal transport ,505,555 20,278,171 22,245,437 22,853,654 23,783, Collaborating to Drives Results: A Q&A with Conservation International s Julie Blackwell (continued from page 15.) Q What was the impetus for Conservation International to launch Team Earth? Since its creation more than 20 years ago, Conservation International (CI) has operated as an NGO with two core strengths: first, our wide-reaching partnerships with businesses, NGOs and other partners in public and private practices; and second, our relationships with the scientific community. In the past, CI s focus has been on reaching out to and working with decision makers and influential leaders. Team Earth is a collaborative effort of cross-sector partnerships designed to reach individuals and inspire them to take action. People need nature to thrive, and through CI s work with corporations and governments, and Team Earth s work with consumers, we are trying to support efforts around a greener, sustainable development path. Q CI works with more than 1,300 NGO partners on projects around the world. What are NGOs looking for from their corporate partners? Investing in People, Investing for the Planet 2010 PUBLIC REPORT 43

44 The missions of CI and other NGOs are varied, but at the end of the day, we all have the goal to save our planet. A lot of power comes from that one collective message. When you get down to where the rubber meets the road, though, NGOs want partners who don t just talk about green practices, they go out and take action and get things done. Good examples are when Starbucks launched its Conservation International Starbucks Card, which donates 5 cents toward forest protection efforts each time a customer pays with the card, and SC Johnson, which added a Green Tip of the Day promotion to its web site and donated $1 for every green tip added. Q Since 1987, Conservation International has been working to conserve the Earth s living natural heritage and global biodiversity. What changes have CI noticed through the years? How can Team Earth and companies help? More companies, groups and individuals are taking a holistic approach to conservation and world health. In the past, there was almost an invisible line separating the missions and goals of the many organizations working out there. On one side were the organizations that supported human health and on the other side were organizations that supported ecosystems and biodiversity. You don t see so much division anymore. Today, there are more collective efforts that are moving toward a common vision. There s more talk about how without one, we eventually won t have the other. The members of Team Earth are key to driving this new vision and working to achieve common goals. Q What else is on your mind these days when you think about sustainability, collaborative efforts and/or environmental challenges? Improving Cleanliness and Incomes (Continued from page 30.) In 2006, SC Johnson co-created a partnership in Nairobi, Kenya with Carolina for Kibera and the Coalition of Youth Entrepreneurs. The partnership co-launched Community Cleaning Services (CCS), in which entrepreneurs offered cleaning and pest control services to community members at a very low cost. The average person living at the base of the economic pyramid, or BoP, has an annual income of less than $3,000. Since the effort s launch, CCS has explored a variety of different services, one of which has grown into a solid business model cleaning public and private shared toilet facilities. Most toilets in Nairobi s poor neighborhoods are shared by multiple households and are poorly maintained. Households now can hire CCS to clean their toilet and share the cost, meaning they can enjoy regularly maintained, more sanitary toilets for about 17 U.S. cents per household. CCS entrepreneurs create and lead teams that provide the cleaning services in their own communities, and the teams share the profits. Eight entrepreneurs have now established profitable CCS micro-enterprises, and another two are joining CCS now. The number of cleaners involved has increased to over 60 and the business grew 187 percent in the first two quarters of this year over the same period last year. The typical pay is more than two times the official local minimum wage, and some toilets now have an on-site attendant whose income is nearly 40 percent above minimum wage. My mind is on how we can create a society where we, as individuals, instinctively take action, not because we re working in the green space, but because we ve decided to make smarter decisions to lead a healthier life and live in a way that protects the planet for future generations. I would like it to permeate our thoughts that the steps we take don t have to be a sacrifice in order for them to be good. Members of the CCS team recently met for a general meeting. 44 Investing in People, Investing for the Planet

45 CCS also now manages some public toilets, including some it has refurbished and painted to make community members feel more comfortable using them. Importantly, CCS is also focused on environmental sustainability and has initiated a bulk product program, so packaging is reused within the business rather than discarded. This eliminates cost and waste for the business and the communities in which it operates. The business is under way in the Mulango Kubwa, Korogocho, Kariobangi, Kariokor, Kawangware, Pangani, Zimmerman and Mathare #10 areas of Nairobi. Uncovering Insights, Creating Solutions: A Q&A with SC Johnson s Jeremy Knopow (Continued from page 31.) Q How did you approach working with the CCS team? The most important thing was to build mutual trust from the beginning. I wanted to show early on that I was willing to roll up my sleeves, literally, to unclog a very dirty toilet. You can t be selective if you re truly going to do immersive research. I also lived with one of the entrepreneurs while I was there, and that went a long way toward building a good working relationship. He was a very gracious host. I also found many people were eager to show me the issues and problem areas they encountered. And, it s about working together. I wasn t there to fix things alone; it was understood that the CCS team had to own the issues too and we d solve them together. Q What is your assessment of the impact this CCS initiative has had in the lives of the entrepreneurs and on the communities overall? The BoP business-building endeavor is different because it isn t just providing a product or service; it provides a livelihood and new business opportunities for the communities. This helps guarantee the sustainability of the business, because the people involved now have a way to make a living by fulfilling what was an unmet social, environmental or economic need. I would say quality of life, education and process improvements were the biggest areas of impact. For example, Dennis Mambo, the lead team trainer who was my host, was able to move from a one-room tin shanty he shared with his brother into a concrete structure. He was able to finally live under the same roof with his wife and children, and they ve since upgraded to a two-room dwelling. This BoP effort literally changed his standard of living. We worked together and when I left, he was interviewing clients the way I did and was quite adeptly iterating his own prototypes. In addition, the mere fact of having cleaner toilets is significant for the community. The leading cause of death among kids there is from water-borne illnesses. Now, the level of bacteria in the toilets is dramatically reduced, and people are more likely to use the facilities versus polluting natural water sources. Q Coming from a focus on developed-country projects, what did you find different here? The similarities were actually more interesting than the differences. The root of the user-centered R&D process is really quite universal and can be adapted to just about any situation, product or process, including in undeveloped markets. The main difference for me was I was working independently as a one-person R&D operation. That meant I needed to be more resourceful and it took a little longer to get certain things accomplished. For example, I needed otherwise common quarterinch plastic tubing for a prototype. It took almost two weeks just to find something a piece of used tubing from a fish tank in a pet store. Q What was most interesting? I was impressed with how innovative the entrepreneurs are. They never cease to amaze me with what they can do with very limited resources and background. That is why I feel the educational piece of our BoP work is such an important component of the project. Our partners in Kenya have the drive and passion; we are just helping empower them with business and R&D skills so they can build their own businesses and careers. It is very rewarding to see them be so successful. Q What was most challenging? From an R&D standpoint, the biggest challenge was accessing supplies, materials and resources. What takes a couple clicks of the mouse in the United States took days and weeks there. There are also complex community politics that can affect business development multiple layers of tribal, political and religious factors that can come into play. Q Was anything surprising in terms of how it did or didn t meet your expectations? Investing in People, Investing for the Planet 2010 PUBLIC REPORT 45

46 Well, I didn t expect to hear Kenny Chesney s country music blaring from radios there! But, seriously, I was so impressed with the level of personal pride people have, even in the toughest communities. Q What did you learn from this experience that can be applied to future BoP efforts? I think the biggest learning is to get R&D involved in the beginning, especially for the consumer insight process. Everything eventually flows from those key insights and identifying them accurately is a core competency of R&D. This was a significant learning that is already being applied to new BoP endeavors, such as our malaria initiative that was recently kicked off in Ghana. Problem CCS was buying SC Johnson s Duck cleaner in bulk and distributing it to cleaning teams. But it was nearly impossible to refill the traditional curved-neck Duck applicator bottles from the spout of the bulk containers, so most teams used a wide-mouthed container instead. These replacement containers didn t spray under the toilet rim and a lot of cleaner was wasted. Solution The team collaborated to make a new applicator bottle from local materials. It s easier to refill, has a curved neck to reach under toilet rims, and is translucent to allow the cleaners to see how much they re using. As an added plus, the new applicator bottle s cap fits the bulk container as well, meaning they can be transferred to bulk containers to act as a decanting spout. Results Waste of the Duck solution has been reduced by nearly 100 percent. Co-Creating New Businesses: A Q&A with the Center for Sustainable Global Enterprise s Erik Simanis (Continued from page 35.) Q You ve been involved in a lot of BoP work over the years. What changes are you seeing in recent years? Because of the limited success stories, combined with the current economic condition, some of the luster or shine about the BoP as a source of profit and growth has faded. A number of BoP investments are being undertaken as part of corporate social responsibility initiatives with no expectation that it will ever be integrated into the profit and loss side of the business. So the line between BoP as philanthropy and BoP as business development has blurred. I think this blurring of the line creates its own set of challenges for companies. They are two totally different goals and kinds of investment they require different management structures around them to be successful and create value. So when starting a BoP project, there has to be internal clarity and alignment whether it s a business development initiative or a philanthropic effort sitting on the fence usually ends up with an under-resourced business development effort or a poorly-publicized philanthropic effort that creates little value. Q So then, should a company set out with a philanthropic mindset? Wouldn t it seem greedy for global companies to approach BoP initiatives for the purpose of making money? Actually, no; they are two different approaches that create different kinds of value for the company and the communities it aims to serve. Ventures that are profitable are not only going to last a lot longer than ventures that are purely social investments, but they will scale much easier. That is particularly true in economic times like we re seeing now. It can be hard for a social investment initiative to get the traction it needs to keep going in the long term. This has been an interesting issue. I think companies almost feel guilty about pursuing BoP as a growth and profit initiative, for fear that it gets labeled as making money off of poor people. So companies self-censor, and end up sitting on the fence between philanthropy and business development. That, as I ve said, comprises the initiative from the start. Q What s new or different in the SC Johnson/Bill & Melinda Gates Foundation-sponsored project in Ghana? The key business challenge with the project in Ghana is that there is no existing consumer market for malaria prevention we have to create that market. So in Ghana, we re building on the market creation strategies we ve been developing and testing out in Kenya, India, the U.S. and Mexico over the past five years with a number of companies. The approach we re using combines business development with community organizing and social movement techniques so that consumers in the community feel a personal connection and commitment to the new business, and the product offering seems like a natural part of their lives. So we create a base of consumer demand as we build the business, rather than relying on marketing and awarenessbuilding campaigns at the point of business and product launch. 46 Investing in People, Investing for the Planet