Performance That Endures

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Performance That Endures
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Sustainability

• Many definitions
• New term old concept
• Triple Bottom Line - economic, environmental, and
  social balance

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John Deere Values

• I will never put my name on a plow that does not
  have in it the best that is in me.
• Integrity, Quality, Commitment

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John Deere History Worker Safety

• 1901--Worker Compensation introduced 10 yrs ahead
  of State Laws
• 1947--Corporate Industrial Safety Dept
  established
• 1975Safety program established in Total Quality
  Mngt. framework resulting in continuous
  improvement through 2002
• 1983Off-the-Job Safety Program introduced
• 1984Ergonomics program formally introduced
• 2000 ZERO Safety Incident Goal established

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John Deere History - Product Safety

• 1938 Product Safety Committees Formed
• 1940 PTO shields made standard on tractors and
  retrofit program established
• 1963 Starting interlock for lawn garden
  tractors
• 1966 ROPS introduced
• 1972 ROPS retrofit option provided for most
  post - 1960 tractors
• 1984 Bypass Override Valve developed and
  introduced
• 1990 Operator presence system for cotton pickers
  established
• 1999 New Turn-signal modules introduced for
  lighting and marking tractors and implements

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John Deere History - Environment

• 1920 First cloth screen exhaust filters
  installed
• 1936 First foundry with complete mould and core
  and finishing dept dust control system
• 1949 First boiler emission control system
• 1957 Deere adopts strict water effluent
  standards
• 1962 First pollution prevention projects
  involving cyanide elimination installed.
• 1967 First Corporate environmental policy
  established
• 1973 Formal Energy Management program started
• 1981 Pollution Prevention program installed
• 1993 Chlorofluorocarbons eliminated as a
  refrigerant for all product A/C systems
• 2000 Soybean used as base material for sheet
  molded panels

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John Deere Today
Minneapolis, MN
Valley City, ND
Burnsville, MN
Edmonton, Alberta
Fargo, ND
Zweibruecken, Germany
Woodstock, Ontario
Filipstad, Sweden
Langley, British Columbia
Bruchsal, Germany
Welland, Ontario
Joensuu, Finland
Rock Valley, IA
Enschede, Netherlands
Klemme, IA
Des Moines, IA
Exeter, England
Horst, Netherlands
Waterloo, IA
Ottumwa, IA
Gummersbach, Germany
Dubuque, IA
Stadtlohn, Germany
Horicon, WI
Springfield, MO
Davenport, IA
Mannheim, Germany
Coffeyville, KS
Moline, IL
Jiamusi, China
Greeneville, TN
East Moline, IL
Beijing, China
Springfield, IL
Paragould, AR
Toano, VA
Tianjin, China
Redondo Beach, CA
Piqua,OH
Jeffersonville, IN
Alpharetta, GA
Raleigh, NC
Augusta, GA
Torreon, Mexico
Monterrey, Mexico
Pune, India
Thibodaux, LA
Saltillo, Mexico
Madrid, Spain
Santiago, Chile
Richards Bay, South Africa
Saran, France
Catalao, Brazil
Melbourne, Australia
Nigel, South Africa
Arc-les-Gray, France
Santo Angelo, Brazil
Horizontina, Brazil
Tokoroa, New Zealand
Rosario, Argentina

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2001 Sales 13.3 Billion
Construction Forestry 16
Agricultural 47
Other 6
Credit 11
Commercial Consumer 20
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Sustainability Today

• Agriculture - provide customers with tools to
  meet demands for less intensive, less intrusive
  farming
• No till planting
• Precision farming
• Soybean based plastics

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Sustainability Today

• Forestry - provide products with less impact on
  forest during logging
• Life cycle assessment tree harvester
• Recyclability analysis feller/buncher
• Operator training
• Walker

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Recognition

• Crains Chicago Business - named John Deere
  lllinois most-trusted company in a nation-wide
  survey, Deere beat 13 other prominent companies
• Business Ethics magazine - named Deere one of its
  100 Best Corporate Citizens for 2002, ranking the
  company 64th on its annual list
• Manager of the Summit Total Social Impact Fund, a
  Cincinnati-based mutual fund, recently ranked
  Deere among the top five companies in the SP 500
  for its ethical behavior

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John Deeres Challenge

• Build a business as good as our products Bob
  Lane, CEO
• Improve performance, but
• Performance that Endures

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Global Challenges

• Machine recyclability steel vs. plastic
• Machine safety ROPs in India
• Facility location brownfields in China
• Rapid changes
• Employee turnover

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Integration with Key Business Processes

• Business Conduct Guidelines
• Environmental Policy
• Environmental Management System
• Auditing and evaluation
• Standards and Guidance

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Introducing Sustainability

• Should the term sustainability be used?
• Work within the processes structures already in
  place.
• Three Distinct Entry Points
• Long Range Planning
• Environmental Management System
• Supply Management

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A Range of Approaches to Sustainable Development
Introverts
Extroverts
Bottom-liners
Top-liners
Transformers
Thrust
Stay with the pack
Take the high road
Cost leadership
Differentiation
Growth
Questions
Should I do anything?
How can I better align with stake- holders
How can I get cost advantage?
How can I capitalize on SD?
How can I leverage SD to transform
the organization?
Action
Wait and see track the issues
Strengthen communities and environmental protecti
on
Improve eco-efficiency of processes
Create products and services with unique character
istics
Leverage SD to better learn innovate, and manage
for the future
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(4) Essential Ingredients to Sustainable
Developmentexcerpted from (BRT) Business Round
Table

• Governments need to adopt sound national policies
  to promote economic growth environmental
  protection
• Needs to be a vibrant, for-profit sector
• Wealthy countries need to commit financial
  resources for development and need to open up
  more to developing country exports
• International financial institutions should
  better target financial assistance to developing
  countries

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Achieving Good Governance Accountabilityexcerpt
ed from (BRT) Business Round Table

• Promote Democracy - democracy market economy go
  hand in hand
• Uphold Rule of Law through the Judicial System -
  needed for social development as well as
  enforceability of private contracts
• Combat Corruption - this is a serious barrier to
  effective resource mobilization
• Respect Private Property - people will be
  empowered to earn more if it is protected
  businesses want their property protected
• Assure Transparency - for legislative
  administrative policy lawmaking public
  involvement

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Understand Your Reality

• Understand your company impacts
• Understand your customer impacts
• Understand the forces that will shape the future
  for you and your customers
• Identify your strengths

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Final Thoughts

• Focus on core values
• Focus on your markets and customers
• No guarantee
• Technologies
• Culture

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Nothing Runs Like a Deere