Chemical Product Evaluation and Screening Tools for Real World Decision Making Marilyn Johnson, Director Environmental Initiatives and Corporate Sustainability IHS Dolphin

Copyright © 2008 IHS Inc. All Rights Reserved. 2 Today: A look at Real World Tools Actions to Green Chemical Inventories Addressing the millions of products in the marketplace today Greener Product Selection Greening the Supply Chain through Scorecarding Greener Design – use of the 12 principles Case Study: Real World Results CHOICES

Copyright © 2008 IHS Inc. All Rights Reserved. 3 Instead of a fishing pole… Use a large net! Chemical by Chemical Multiple chemicals at once Re-thinking Chemicals Management

Copyright © 2008 IHS Inc. All Rights Reserved. 4 Actions to Green Chemical Inventories Bring up the Bottom Screen all products; move away from the use of the most hazardous chemicals and towards less hazardous, more benign products Aim for the Top Prefer products that are fully assessed, have lifecycle benefits and are low hazard Practice Informed Substitution Continual improvement toward more data; better understanding of what is green and sustainable Goal: Continuous Improvement towards Toxics Elimination and Greener Design

Copyright © 2008 IHS Inc. All Rights Reserved. 5 Green Product Selector Tool: Accelerating Environmentally Preferable Purchasing

Copyright © 2008 IHS Inc. All Rights Reserved. 6 Green Product Selector Example Category: Brake & Electrical Contact Cleaner

Copyright © 2008 IHS Inc. All Rights Reserved. 7 Green Product Selector Example Product: Specific Ingredient Information

Copyright © 2008 IHS Inc. All Rights Reserved. 8 Scorecards Full product disclosure and evaluation; while protecting confidentiality of trade secrets

Copyright © 2008 IHS Inc. All Rights Reserved. 9 Benign by Design – tools to evaluate using the 12 principles of Green Chemistry

Copyright © 2008 IHS Inc. All Rights Reserved. 10 Real World Results Case Study: Operational ‘Greening’

Copyright © 2008 IHS Inc. All Rights Reserved. 11 Case Study – Mining Company Initial Chemical Inventory Analysis 12,000 Active Chemical Products 22 Geographic Sites in North America Product Selection: only 20% used at more than one site $12,000,000 Annual Maintenance Operations and Repair (MRO) Chemical Spend

Copyright © 2008 IHS Inc. All Rights Reserved. 12 ‘Operational Greening’ - Addressing Maintenance, Repair and Operations (MRO) Inventories

Copyright © 2008 IHS Inc. All Rights Reserved. 13 Case Study – Mining Company Human and Environmental Hazards Example Findings 250 chemical products contain Mercury/Lead 5000 products contain known Extremely Hazardous Substances for the Environment 2100 products contain known Human Carcinogens, Reproductive Toxins, or Mutagens

Copyright © 2008 IHS Inc. All Rights Reserved. 14 Case Study – Mining Company Reduce product count by 8,000 Reduce chemical hazards by 50 to 60% Reduce annual MRO chemical spend by $3+ million Marketing opportunity and sustainability reporting Request and approval system for continuous improvement Implementation

Copyright © 2008 IHS Inc. All Rights Reserved. 15 SiteName Average of Health Score Average of Env. Score Average of Overall Hazard ScoreTotal Products Average Cost Per UOM Site A $1.231 Site B $0.920 Site C $0.780 Site D $0.598 Site E $0.547 Site F $1.607 Chemical ReductionHazard Reduction Measurable Results

Copyright © 2008 IHS Inc. All Rights Reserved. 16 Reduced Human Health Score by 60% Virtual elimination of chemicals known to be carcinogens or reproductive toxins Reduced Environmental Score by 55% Virtual elimination of all chemicals known to be PBT’s or Ozone Depleting Substances Eliminated the 300 most hazardous chemicals (10% of total chemicals) - replaced with more preferable chemicals Reduced annual spend on chemicals by 25% Measurable Results

Copyright © 2008 IHS Inc. All Rights Reserved. 17 Gain Visibility: Know exactly what you have in your facilities 1 Analyze Inventory: Rank products by cost and hazard 2 Select Products: Eliminate costly, unsafe, redundant chemicals 3 Source Products: Maintain a greener inventory to positively impact people, planet, and profits 4 Performance Metrics: Track and report on progress 5 Steps to Green Chemical Inventories

Copyright © 2008 IHS Inc. All Rights Reserved. 18 For Further Information Marilyn Johnson