Moving Up the Curve: Life Cycle Thinking at Eastman Lauren Johnson September 30, 2015

Agenda Introduction Eastman’s journey Value created through life cycle assessment (LCA) Summary

Eastman is a global specialty chemical company Headquartered in Kingsport, Tennessee 2014 revenue of $9.5 billion to a variety of end-use markets Approximately 15,000 employees and 50 manufacturing sites around the globe ►

Value creation from sustainability: Gaining momentum Time Value Sustainable Innovation Increased value Value chain engagement Improved footprint Reduced footprint Environmental stewardship

What is Life Cycle Assessment (LCA)?

History 1950s Early development of life cycle concepts to quantify product economic costs 1969 Coca Cola applies life cycle concepts to quantify environmental impact of packaging choices 1970s EPA and other agencies apply Resource & Environmental Profile Analysis (REPA) – modern LCA taking shape and framework developed – entry of LCA into public domain 1980s Shift from source oriented to environmental impact oriented approach 1990s Life Cycle Assessment (LCA) term coined at SETAC conference and LCA ISO standard 14040 developed 2000s LCA use by public and private entities grows 2008 Eastman develops internal LCA capabilities 2015 Eastman completes LCAs on ¾ of products

LCA Team Strategy: Deliver value from Sustainability

Many Eastman organizations collaborate on sustainability projects Image: http://www.thoughtfeast.co.uk/the-omnichannel-supply-chain-a-circular-economy-part-2/ Image adapted from Thought Feast © EMC Corporation 2014

Value Creation from LCA How do customers and other stakeholders use quantitative sustainability info? How has Eastman benefitted from LCA?

How do our customers use LCA information? Environmental Product Declarations Health Product Declarations Leadership in Energy and Environmental Design (LEED) Building Product Disclosure and Optimization credits Purchasing decisions GHG reduction and other sustainability targets Images: http://www.hpd-collaborative.org/ http://www.environdec.com/en/What-is-an-EPD/#.VglTmU2FPmE http://www.usgbc.org/leed http://s3.amazonaws.com/usgbc-assets/leedv3/img/leed-landing-page/leed_logo_washed.png

Value creation using LCA Drive new business & customer insights Deliver value to customers Defend existing business Attract new customers Decrease costs Enable processing innovations Increase brand value Data-driven sustainability © PowerPoint Stock Image Image adapted from: http://www.presentationpro.com/images/product/medium/slide/PPP_INATU_LT3_Ocean_Wave_B.jpg

Deliver value to our customers Logistics footprint tool Collaboration to determine best overall solution Estimate greenhouse gas (GHG) emission differences between shipment options for customer scenarios Enabled significant GHG emissions savings for large volume customers

Value creation using LCA Drive new business & customer insights Deliver value to customers Defend existing business Attract new customers Decrease costs Enable processing innovations Increase brand value Data-driven sustainability © PowerPoint Stock Image Image adapted from: http://www.presentationpro.com/images/product/medium/slide/PPP_INATU_LT3_Ocean_Wave_B.jpg

LCA supports strategy in the automotive market … Provides OVERALL superior ENVIRONMENTAL performance REDUCE production of volatile organic compounds (VOC) REDUCE GHG INTENSITY REDUCE ENERGY CONSUMPTION HIGH-SOLIDS SOLVENT-BORNE COATINGS Chinese government mandated waterborne coating technology for all new OEM paint shops Business asked for help from the LCA team Cradle-to-panel study on waterborne and solvent-borne coatings technologies Data collected with external consultants Published in Paint and Coatings Industry Magazine (PCI) Changed policy direction in China

Value creation using LCA Drive new business & customer insights Engage customers Defend existing business Attract new customers* Decrease costs Enable processing innovations Increase brand value Data-driven sustainability © PowerPoint Stock Image Image adapted from: http://www.presentationpro.com/images/product/medium/slide/PPP_INATU_LT3_Ocean_Wave_B.jpg

Value creation using LCA Drive new business & customer insights Engage customers Defend existing business Attract new customers Decrease costs Enable manufacturing innovations Increase brand value Data-driven sustainability © PowerPoint Stock Image Image adapted from: http://www.presentationpro.com/images/product/medium/slide/PPP_INATU_LT3_Ocean_Wave_B.jpg

Enable Manufacturing Innovations Eastman GEM™ emollient ester © Eastman 2015 Gate-to-gate LCA validates sustainability advantages of new process technologies

Value creation using LCA Drive new business & customer insights Engage customers Defend existing business Attract new customers Decrease costs Manufacturing improvements Increase brand value Data-driven sustainability © PowerPoint Stock Image Image adapted from: http://www.presentationpro.com/images/product/medium/slide/PPP_INATU_LT3_Ocean_Wave_B.jpg

It is critical for our industry to promote a scientific, risk based approach to product innovation and stewardship LCA provides substantiation, specificity, and assessment of trade-offs LCA is a platform for value-adding dialogue, transparency, building trust http://alexxstuart.com/wp-content/uploads/2013/09/go-green-greenwash-paint.jpg © Alexx Stuart 2015

Window Film LCAs http://genesistinting.com/ (seller of Eastman’s Llumar and Vista window films) © Genesis Tinting 2015

Architectural Window Film LCA Avoided life cycle environmental impacts

Architectural Window Film LCA GHG emissions “break even” time (days post-installation)

Automotive Window Film LCA http://northamerica.llumar.com/choose-a-product/automotive-window-films © Llumar 2015

Value of LCA in Innovation © Paul Yaroschak, Department of Defense, 2014

Summary Life cycle assessment is a rigorous, quantitative and transparent tool used to assess aspects of environmental sustainability LCA provides context for the environmental impact of a product, enabling value creation and informed decision making at any and all points in the value chain and along all phases of a product life cycle

Thank you

Questions?