Sustainable Business and Safer Chemistry Through the Supply Chain How SC Johnson Uses Greenlist ™ To Reduce Our Environmental Footprint Innovators RoundtableNovember 14-16, 2005 Darden School of Business

Provides environmental leadership throughout the supply chain Establishes comparative criteria that measure environmental and biological impact Four Environmental Classification Levels (EC values) for our raw materials and packaging Greenlist ™ - Reducing our environmental footprint Greenlist™ is not a list of chemicals

Original focus on 6 categories (80% of kg volume) - Surfactants- Solvents- Propellants - Insecticides- Resins- Packaging 4 – 7 unique criteria for each category - Meaningful - Discriminating - Readily available - Other sig. concerns Each raw material or component gets a score - 3 (Best) - 2 (Better) - 1 (Acceptable) - 0 (Restricted Use Material - RUM) Greenlist ™ - Reducing our environmental footprint How the Greenlist™ Works

Presence moves material down one class –PBT/POP (EPA Classifications) –Endocrine disruptors –Carcinogenicity (IARC, Proposition 65, EU Category II) –Reproductive toxicity (Proposition 65) –Other “chemicals of concern” lists Banned in one or more countries where SC Johnson markets products. Unofficial bans (trade, associations) Greenlist ™ - Reducing our environmental footprint Other Significant Concerns

1.12 on 232 Million Kgs from 5-Rated Categories 1.26 on 227 Million Kgs from 5-Rated Categories 1.24 on 270 Million Kgs from 9-Rated Categories 1.41 on 620 Million Kgs from 17-Rated Categories Greenlist ™ - Reducing our environmental footprint

Partnering with Suppliers to “Green” The Supply Chain There are numerous ways to partner on “Greening” the supply chain. 1. Identify raw material that need replacements 2. Sharing raw material criteria with supplier 3. Requesting “Environmentally Responsible” replacements for specific chemical. 4. Partnering on projects to develop superior products with a better environmental/health profile

Dow Chemical A Unique and Innovative Supplier Wide range of Raw Materials Plastics Solvents Biocides Surfactants Chelants Polymers Global Supplier Raw materials are available at all our manufacturing sites Extensive R&D and EH&S Resources Development of new materials for customers Toxicity and Environmental data and testing of materials Extensive Technical Service Resources Partnership on numerous projects High through-put capabilities to screen and identify alternatives Total Solutions to meet cost/performance criteria Product Alternatives to address EH&S concerns

Challenges of Commercializing New “Environmentally” Responsible Raw Materials First the performance and cost parameters need to be defined! Can a supplier find or design a replacement that is equivalent or better in performance at a similar cost structure. If a substitute is Identified Does it have equal performance? Is it a commercial product? If not commercial, what is the cost to commercialize?

The Greenlist  Process reduces the environmental impact of raw materials we use in our products. SCJ as a chooser of chemicals must rely on our suppliers to partner with us to identify raw materials that have better environmental profiles. The Greenlist  Process has produced products that are better for the environment, good for our consumers, and good for business. The Greenlist  process is helping SC Johnson build a sustainable future. SUMMARY