The Greenlist Process

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The Greenlist Process Better Products that are
Better for the Planet

SC Johnson, A Family Company
Stakeholder Forum on Framing a Future Chemicals
Policy
April 29, 2005
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SC Johnson Son Inc. We make some of your
favorite products!
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SC Johnsons Legacy of Environmental Leadership
(1994)
Awarded the WEC Gold Medal for Corp. Achievements
in Sustainable Development
(1935)
H.F. Johnson, Jr. leads Carnauba expedition,
15,000 miles from WI to Brazil in search of a
sustainable source of wax for our products
(2001)
Becomes pilot member of the U.S. EPAs Climate
Leaders Initiative
(1955)
Introduces water-based aerosols
(2002)
Becomes charter member of Climate Leaders then
EPA Administrator Whitman visits Waxdale
(1975)
Eliminates CFCs from its aerosol products 3 years
before U.S. mandate

(1990)
Co-founding member of WBCSD and set pollution
reduction goals 420mm lbs. of waste reduced
(2003)
U.S. EPA awards SC Johnson with first-ever
Lifetime Atmospheric Achievement Award
(1993)
First to issue an annual corporate environmental
report
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Our Greenlist? Project is our 1 Environmental
Initiative
The goal of Greenlist is to improve the
footprint of SC Johnson products on the
environment.

• As formulators of consumer products, we are
  chemical choosers, selecting the raw materials
  (ingredients) which give us the performance,
  aesthetics, and cost needed to be market leaders
  and improve our footprint on the environment.

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The Greenlist is not a List of Chemicals!

• Greenlist? is a process that establishes
  comparative criteria that measure the
  environmental and biological
• impact of our choices (footprint).
• It establishes four Environmental Classifications
  (EC) values for our raw materials and packaging.

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How the Greenlist Works
What Do We Screen?
Six categories represent 80 of Kg volume

• Surfactants
• Solvents
• Propellants
• Insecticides
• Resins
• Packaging

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How the Greenlist Works
How Do We Screen Them?
What Do We Screen?
4-6 unique criteria for each category
Six categories represent 80 of Kg volume

• Meaningful
• Discriminating
• Readily Available (SCJ Suppliers must have
  most of the data).
• Plus -- Other Significant Concerns

• Surfactants
• Solvents
• Propellants
• Insecticides
• Resins
• Packaging

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How the Greenlist Works
How Do We Screen Them?
What Do We Screen?
4-6 unique criteria for each category
Six categories represent 80 of Kg volume

• Meaningful
• Discriminating
• Readily Available (SCJ Suppliers must have
  most of the data).
• Plus -- Other Significant Concerns

• Surfactants
• Solvents
• Propellants
• Insecticides
• Resins
• Packaging

How Do We Rate Them?

• Best (3)
• Better (2)
• Acceptable (1)
• Restricted Use Material (0) -RUM

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How Does the Greenlist? Process Work?

• Establish 4-7 meaningful criteria for each
  functional category that will discriminate.
• For Example
• Biodegradability
• Aquatic Toxicity
• Human Toxicity
• EU Environmental Classification
• Source/ Supply
• Vapor Pressure
• Octanol/Water Coefficient
• Other Criteria appropriate for functional
  category

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Other Significant Concerns

• Presence of any of these concerns below moves
  material down one class.
• EPA Classifications - PBT/POP
• Endocrine disruptors
• Carcinogenicity (IARC or Proposition 65 or EU
  Category II)
• Reproductive toxicity (Proposition 65)
• Other chemicals of concern lists, e.g.
• Banned in one or more countries where SC Johnson
  markets products.
• Unofficial bans (trade, associations).

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Environmental Profiling- SC Johnson EPA

• Chemicals of greatest concern

• Persistent (P) -Bioconcentrate (B) -Toxicity
  Concerns (T)

• Very few chemicals have been tested to determine
  if they are PBT or POP (Persistent Organic
  Pollutant).
• In 2002 EPA is piloted a new computer-based model
  that estimates the PBT character of the
  chemicals.
• SC Johnson - first Consumer Products Co. to
  partner w/EPA on new PBT-free program.
• Initial PBT screen of non-fragrance raw materials
  completed (2,300).
• Approximately 23 chemicals were identified as
  potential PBTs.
• Currently all potential PBTs have either
  exonerated as PBTs with additional data or are no
  longer purchased or used.
• Currently we are working with the Research
  Institute for Fragrance Materials to screen our
  fragrance components for PBT properties.

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Evaluating New Categories Continues to Expand the
Reach of Greenlist?

• Surfactants Inorganic Acids
• Solvents Inorganic Bases
• Propellants Organic Acids
• Insecticides Wipes Nonwovens
• Resins
• Packaging
• Chelants and Sequestering Agents
• Antimicrobials / Preservatives
• Fragrance Raw Materials
• Waxes Candle Fuels
• Colorants, Dyes, Inks
• Thickeners
• Others

future category
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Surfactant Scoring Examples
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Lets Look at One Case Study
Windex Blue Glass Cleaner

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Windex Blue Glass Cleaner
Windex Blue Glass Cleaner was reformulated to
improve cleaning and reduce VOCs. The result is
1 million kg less VOCs, improved product
performance and the business has grown by 8 (an
increase share by 3.9 points). Other
Windex SKUs are currently being reformulated
similar to Windex Blue.

• In 2002, 181,800 kg of VOCs were removed from the
  formula while maintaining the streak-free
  cleaning effectiveness Windex offers.
• In 2004, Windex was again reformulated
  eliminating 820,000 kg of VOCs while improving
  the cleaning performance by 30.
• This was done using a patentable combination of
  surfactants, low
• VOC solvents and a unique polymer.

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WindexBlue Glass Cleaner (continued)

• At the same time we removed a volatile organic
  solvent, 2-butoxy ethanol that was recently
  classified as toxic under the Canadian
  Environmental Protection Act.
• Through the Greenlist Process we developed a new
  formula for Windex using raw materials that are
  better for the environment while also exceeding
  the expectation of the consumers for cleaning,
  did not streak, and was easy to wipe.
• Since the introduction of the new formula in
  September, Windex sales are up 8, and share was
  increased by 3.9 points.

January 2005 data
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Corporate Metrics
Is Greenlist Making a Difference?
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Projected EC Value Through 2004/2005
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Improving Our Environmental Footprint
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VOC Reductions
Without These Efforts.
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Greenlist has Created Products that are Better
for the Environment

• Since the beginning of the Greenlist Project we
  have eliminated over 11,000,000 kg of less
  desirable material and increased the use of
  better and best materials by over 13,000,000
  kg.
• PVC and Chlorine bleached paperboard has been
  eliminated from our packaging materials. This
  represents 1,705,000 kg of PVC and over 100,000
  kg of chlorine bleached paperboard.
• Elimination of Volatile Organic Compounds is
  another goal of Greenlist. In fiscal 2003-04 we
  eliminated 5 million kg of VOC. The 2004-05 goal
  is to eliminate 3.9 million kg of VOCs.

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SUMMARY

• The Greenlist? Process reduces the environmental
  impact of raw materials we use in our products.
• Through Greenlist SC Johnson is taking a
  positive, proactive approach that compels the use
  of even better raw materials rather than simply
  eliminating undesirable ones. When a new formula
  is developed, we encourage the use of Better
  and Best raw materials for the new formulation.
• 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.