1. sustainable development, which emphasizes meeting the needs of the present without compromising the ability of future generations to meet their needs Lubrizol is committed to compliance with applicable laws/regulations and the continuous improvement of our environmental practices. Our approach emphasizes the efficient use of all natural resources and sustainable development, which emphasizes meeting the needs of the present without compromising the ability of future generations to meet their needs.... Lubrizol Environmental Policy Statement 5/19/97 OUR POSITION

2. HOW DO WE … ? meet the needs of the present without compromising the ability of future generations to meet their needs … THE CHALLENGE RECOGNIZING THAT … individual actors are not rewarded for societal behavior … Microeconomics vs. Macroeconomics …

3. BENCHMARKING RESULTS WHERE WE ARE  Top-down management commitment (e.g., Shell, DuPont, BASF, Dow).  Metrics to evaluate operational performance (e.g., energy consumed, material inputs, waste outputs).  A methodology to assess the life-cycle cost of products and services.  Recognition that “sustainable development”, first and foremost, must be economically sustainable within the business.

4. TOTAL COST ASSESSMENT (“TCA”)  Evaluate business processes using a life-cycle perspective, measuring all inputs and outputs.  Identify previously overlooked costs to the business.  Develop process or material changes or efficiency improvements that can lead to cost savings and a competitive advantage. WHERE WE ARE

5. TCA COST TYPES WHERE WE ARE I.Direct - capital, labor, materials, waste disposal. II.Indirect - non allocated corporate & plant indirect costs (reporting / regulatory / monitoring costs). III.Future / Contingent Liability - potential fines, future liabilities (non-compliance, remediation, personal injury, property damage, industrial accident costs). IV.Intangible-Internal - Costs borne by company (customer acceptance, worker morale, union & community relations). V.Intangible-External - Costs borne by society (effect on housing costs, degradation of habitat, etc.).