(Image or color to replace gray area) The Journey to Sustainable Growth: DuPont’s Energy and Greenhouse Gas Reduction Goals Michael Parr NGA Workshop February 28, 2002

NGA Workshop Page 2 DuPont delivers Science-based solutions... –Food & Nutrition –Health Care –Apparel –Home & Construction –Electronics –Transportation From a global company –94,000 employees in 70 countries –200 facilities in the US

NGA Workshop Page 3 Sustainable Growth “Creating shareholder and societal value while decreasing our environmental footprint” …. along the value chain Chad Holliday

NGA Workshop Page 4 DuPont and Climate Change Shaped by active participation in global scientific effort (IPCC) Involvement began with ozone depletion Concluded in 1991 that there is cause for concern Analyzed DuPont emissions profile –Large CO2 emissions despite decades of energy efficiency gains –Significant N2O, CFC-23 emissions Contributing to the problem.

NGA Workshop Page 5 DuPont Climate Change Goals Established goals for 1990’s to: –Reduce global GHG emissions 50%, focus on non-CO2 gases –Increase energy efficiency by 15%, continues decades of effort Driven by –Science of climate change –Recognition of DuPont’s “environmental footprint” –Goal of sustainable growth –Desire to contribute to the solution

NGA Workshop Page 6 How Have We Done? Reduced greenhouse gas emissions from operations >60% globally Energy consumption flat, despite 36% increase in production volume

DuPont Early Reductions % ‘90 0 BAU Impact of DuPont Early Actions

DuPont Early Reductions % ‘90 0 Environmental Benefit BAU Impact of DuPont Early Actions

DuPont Early Reductions % ‘90 0 BAU Impact of DuPont Early Actions Credit?

NGA Workshop Page 10 How’d We Do That? Greenhouse gases Nitrous oxide abatement in adipic acid process HFC23 abatement in fluorochemical process Energy Efficiency 1/2 gains from efficiency projects, powerhouse modernization 1/2 gains from changes in our processes and product mix

Greenhouse Gas Reduction Cost Marginal Cost of Greenhouse Gas Reduction Projects ** ** ** Priority For Investment

100% 20%40%60%80%100% 80% 60% 40% 20% Environmental Benefit Cost The “80-20” Rule You accomplish 80% of the environmental benefit with the first 20% of costs.

NGA Workshop Page 13 Goals For The Current Decade Reduce global carbon equivalent emissions by 65% using 1990 as a base year –Kyoto basket Hold total energy use flat using 1990 as a base year –More “knowledge-intensive” products –Reaching practical limits on yield and utilization gains Source 10% of our global energy in 2010 from renewable resources –Heavily dependent upon external forces to ensure competitive pricing

NGA Workshop Page 14 DuPont Kyoto Greenhouse Gas Reductions

NGA Workshop Page 15 Why Are We Doing This? Climate change poses a serious long term challenge The human community will respond to that challenge That response will have dramatic economic implications

A LONG TERM ISSUE Concentration ( ppmv ) Stabilization at: X Pre- Industrial Potential Concentration Targets Total Emissions (CtC/yr) Toward Stabilization at: Developing country emissions “Business as usual” Related Emission Pathways Total current emissions Kyoto Protocol

NGA Workshop Page 17 Our Business Challenge... To Position DuPont for the Future Get ahead of the curve –Ensure that DuPont businesses are positioned to compete globally in a market place increasingly dependant upon getting more from less Position our businesses to be part of the solution –Gain the insight, and experience to help our industries and our customers prosper in that market place

NGA Workshop Page 18 The Interlocking Values of Sustainable Growth