SC Johnson: The Journey of Sustainable Development Continues WEC Gold Medal Colloquium May 16, 2002

“SC Johnson’s goal is to catalyze innovative practices to reduce our footprint on the environment. ” -- H. Fisk Johnson, Ph.D. Chairman S.C. Johnson & Son, Inc.

Five generations of family ownership and management years old. #1 and #2 market positions in 15 household product categories in 100 countries - operations in +65. Recognized worldwide for leading employee practices. Recognized for corporate social responsibility - giving back 5% pre-tax. Recognized for environmental and sustainable leadership initiatives for decades, including CFC-free aerosols, cleaner/safer products and processes, founding member WBCSD, PCSD. SC Johnson, A Family Company

Environmental Leadership Continues Post the 1994 WEC Gold Medal –>60% process waste eliminated while production increased more than 50%. –>25% reduction in solvents - first innovative product exemptions for VOC minimization. –>30% increase in package recycled content and PVC phase-out - cut virgin package material by a third. –Led national grassroots coalition for aerosol recycling - >5,000 NA cities now recycling. –Eco-Efficiency for the 1990’s saved a quarter billion tons of waste and generated $125mm in bottom line savings.

New Environmental Strategic Plan Approved for Environment one of six corporate strategies. New Environmental Leadership team reports directly to the Chairman. Plan was developed with key internal stakeholders globally, with input and feedback from external experts, NGO’s, opinion leaders and Partners.

The New Plan: Reduces the footprint of our business. Improves the planet’s climate. Recognizes the need to define and learn how to grow our business through the application of Sustainable Development Principles. Shares our leadership programs with others.

“Eco-Efficiency” Continues: 100% Phase out of Chlorine based packaging. Established new water effluent specifications for our suppliers of paperboard packaging. Reduce air emissions, water effluents and solid waste by an additional 15% (One half million ton reduction in 2001). Decrease Fossil fuel use by 10% (6.2% reduction in 2001). Continue to Reuse, Recycle and Refill!

SC Johnson has created a new process called Greenlist©. This step towards Eco-Effectiveness has been applauded by the EPA,environmental groups and other corporations. Greenlist© has been shared externally with others, including the SDA, Customers, Suppliers, the WBCSD, and other companies. “Eco-Effective” Materials Management :

Greenlist © will set new SC Johnson Environmental standards that go beyond regulatory compliance. Our goal is to help the business make the best raw material choices for our products, that reduce our footprint on the environment. It’s about institutionalizing Eco-effectiveness: choosing to use raw materials that are better for the planet and its inhabitants.

Establish 2000 baseline of Greenhouse Gases and reduce these emissions 5% annually. Reduce fossil fuel usage 10%. SC Johnson is the first and only consumer products company to join US EPA Climate Leaders Initiative. Year One goals exceeded by 20%. WRI/WBCSD GHG protocol taught to top 7 SC Johnson manufacturing sites. Improving the Planet’s Climate -- The SC Johnson Plan

Apply Sustainable Development Principles One or more business categories implement sustainable development principles. Learn on a small scale, how to develop and apply Sustainable Development thinking to one business, and expand corporately from pilot programs.

“Sustainable Development is about ensuring a better quality of life for everyone, now and for generations to come. Thus it combines ecological, social, and economic concerns, and offers business opportunities for companies that can improve the lives of the world’s people.” World Business Council for Sustainable Development Sustainable Development Defined:

Sustainable Development Brand Plan Innovate: -Roll-out pilot SD training program --> 2/02 through 6/02 -Bio-mimicry as a source of innovation.-4/24/02. -Establish SD Criteria as part of Stage Gate Process. Provide & inform consumer choice: Partnerships: -Link Brand Objectives to Mission of Partners dedicated to improving the human condition. -Leverage partners expertise and CBO contacts to implement SD initiatives. First pilot program launches September ‘02. -Cultural Creatives identified as 23% of brand’s franchise. -Make recommendations on future research by 4/02 -Present research “best practices” by 6/02

Our Ultimate Goal... The “working” model of Sustainability

“Our job is to sustain profits, yes, but also to sustain people, communities, and the environment … A company cannot out-source its moral responsibility.” -- Samuel C. Johnson, Chairman Emeritus S.C. Johnson & Son, Inc. Member of WRI’s Board of Directors