Product Stewardship Paradigm Shifts Beth Turner Global Director – Sustainability and Product Stewardship E. I duPont de Nemours and Co, Inc. Asia Pacific Responsible Care® Conference November 16, 2005

2 DuPont's Vision To be the world’s most dynamic science company, creating sustainable solutions essential to a better, safer, healthier life for people everywhere.

3 Compliance ValueValue Business Integration Corporate Environmentalism Vision & Objectives of Woolard Sustainable Growth New models New technologies SHE Commitment DuPont’s Journey The Goal Is ‘0’ Responsible Care®

4 Old Paradigm Rules of the road were well defined by law and regulation Government held most of the information, arbitrated the debate... and was a powerful force in assuring freedom to operate Primary focus was on environmental harm: facility and emission-based rules Public’s role was to react and provide comments

5 Old Paradigm Science played a strong role and we understood the science Most chemicals were not regulated and there was little mandatory testing Where there was product regulation, government approvals sufficed for public acceptance

6 Old Paradigm Information was provided to the public by government National publics were generally isolated from one another Within corporations, the responsibility for understanding and managing these issues belonged in HSE, legal or operations

7 Shifts are Occurring Society Science Information Roles and power

8 Society Society is taking a more active role in deciding what is acceptable and unacceptable. Increasingly, power resides with the consumer. Facility footprint still matters, but society is concerned about what we make, as well as how we make it Public’s concern is broader than harm to air, water – does it harm me?

9 Society The public’s concern and role is shifting: Products are the new target Concern about lack of product regulation Concern about societal value and impact from our products down the value chain Public’s definition of risk includes a strong “values” component

10 Science Science is still important, but is not sufficient for public acceptance Consumers are making choices that are not science-based Science is rapidly evolving: Moving from emissions to products to chemicals in body Detection limits lower and lower Information in public domain before government can tell public what it means And what DOES it mean in the cumulative aggregate, not chemical-by-chemical? Raising more questions than answers

11 Information Rules of the road are ill-defined and not legally based The Internet is changing the rules Information about safety, risk and societal values is readily and rapidly accessible to the public Public more informed about health effects

12 Information Information reaches the public domain before government can interpret and respond Issues are becoming global and quickly

13 Roles and Power Power is shifting National government is important but is often no longer dominant Power to the people Power to local government Power to international treaties and agencies Power to multiple national governments Issues are both local and global NGOs are playing a growing role in shaping the public’s view of acceptable risk

14 Roles and Power Non-governmental organizations (NGOs) are rising as a filter to society The Internet is uniting small, diffuse NGO groups NGOs are frequently targeting the marketplace: consumers, markets, brands NGOs are connecting with other entities such as plaintiff’s bar for influence Public trusting NGOs more than government or industry

15 Decisions are moving out of the government and into the marketplace. We are operating at the indulgence of the public, not at the indulgence of government. In the New Paradigm

16 NGOs are forcing market change: Achieve faster behavior change and risk reduction Companies respond quickly to market forces A market leader can change an industry’s behavior before government Some NGOs interested partnering with companies to effect change Others are interested in aggressively targeting companies In the New Paradigm

17 Media and internet are making market campaigns globally effective, fast and inexpensive. Every industrial sector is impacted: automobiles, food, clothing,... chemicals. In the New Paradigm

18 Sustainable Companies Must Have world-class: Facility management Science Product stewardship Comply with regulations, build strong regulatory relationships, and push for thoughtful regulation Partner with friendly NGOs and build relationships with unnatural allies

19 Sustainable Companies Must Know critics and understand their concerns Be transparent Manage corporate reputation and live up to stated values Businesses must understand what is happening in their market space, with the support of Responsible Care® professionals

20 Market Forces in the New Paradigm Affect All Companies

21 Is your business (or your customer’s business) vulnerable to market based campaigns? Are there risks and/or opportunities for your business as activists move their campaigns into the market place? Do you have a strategy for incorporating non-traditional stakeholders into your strategic business decisions, from research and development to commercialization? PROVOCATIONS