About the Global Environmental - GEMI

1 GEMI Member Companies:3MA bbottA nheuser-Busch, shland Squibb Com panyBN SF Railw ay Com panyCadbury Schw eppes PLCC arnival corporation & PLCThe Coca-Cola Com panyConA gra FoodsD ell D ow Chem ical Com panyD uke EnergyD uPontEastm an K odak Com panyEli Lilly and Com panyFedExG laxoSm ithK lineH PIntel CorporationJohnson & JohnsonAbout the Global Environmental M anag ement Initiative The Global Environmental Management Initiative (GEMI) is a non-pro t organization of leading companies dedicated to fostering Environmental , health and safety excellence and corporate citizenship w orldw ide.

2 Through the collaborative efforts of its members, GEMI also promotes a w orldw ide business ethic for Environmental , health and safety management and sustainable development through example and guidance included in this document is based on the professional judgment of the individual collaborators listed in the acknow ledgements. The ideas in this document are those of the individual collaborators and not necessarily their organizations. N either GEMI nor its consultants are responsible for any form of damage that may result from the application of the guidance contained in this document.

3 This document has been produced by the Global Environmental Management Initiative (GEMI) and is solely the property of the organization. This document may not be reproduced nor translated w ithout the express w ritten permission of GEMI, except for use by member companies or for strictly educational Controls, iversey, och Industries, raft Foods & Com pany, CorporationMotorola, ovartis CorporationO ccidental petroleum CorporationO w ens CorningP zer IncThe Procter & G am ble Com panyRocheSchering-Plough CorporationThe Scotts Com panySm ith eld Foods, Com panyTem ple-Inland Foods, yethAMNXQ [R 0[Z`QZ`_Table of ContentsAcknowledgements.]]

4 2 Preface ..3 Execu tive Su mmary ..4 Introdu Metrics D evelopment Process: O 1 - 3: What is Material ..11 - 32 Step 4: What and H ow to Measure ..33 - 46 Steps 5 - 6: H ow to A ssure Effectiveness ..47 - 6 R eferences ..(inside back cover)O nline Appendix: Additional O nline R esou rces .. Blank Worksheets External A dvisory Group Perspectives in Full ResourcesCase Ex amp lesPg 14 FedEx: Response to H urricane K atrinaPg 163M: The Role of Sustainability at 3 MPg 17 Eastman K odak Company: Supporting Business Transition through Responsible GrowthPg 23B ristol-Myers Sq u ibb Company:External Reporting and Internal Management of MetricsPg 23Th e Scotts Company: Identifying Issues from C onsumer C allsPg 28 Abbott: Managing Emerging Business Pg 29D u Pont.

5 Managing EnergyPg 30Th e D ow Ch emical Company: D eveloping D ow s 2015 Sustainability GoalsPg 38Th e Procter & Gamble Company:Exploring New Value-C reation MetricsPg 38 Intel corporation : A ssessing Performance of Education ProgramsPg 39D u Pont: Metrics to D rive Sustainable GrowthPg 413M: Scorecard to D rive PerformancePg 44 D u Pont: Setting A chievably Stretched TargetsPg 45 Sou th ern Company: Target Zero to C hange Employees MindsetsPg 48 Joh nson Controls, Inc.: Managing Energy and Greenhouse Gas D ataPg 49 3M: Moving Toward Sustainability through Six SigmaPg 50 Joh nson & Joh nson: C ommunicating Progress toward GoalsPg 53 O ccidental Petroleu m corporation :Periodic Review of Metrics and the Management SystemPg 54 P zer Inc: Evaluating C ompany- Wide Goals1 AcknowledgementsTheGEMI Metrics Navigator was developed through a collaborative process by the GEMI Metrics Work Group and BRIDGES to Sustainability, a Division of Golder Associates Inc.

6 (Golder). Jim Kearney, Bristol-Myers Squibb Company and Leslie Montgomery, Southern Company, co-chaired the project. The Golder team operated under the direction of Beth Beloff, the project management of Marianne Lines and included signi cant contributions from Dicksen Tanzil, Karen Clark-Whistler, Kimberley Murphy, Abigail Martin and Daniel Mills. GEMI staff contributing to this document included Steve Hellem and Amy GEMI Metrics Work Group members included:Brenda Abke, The Scotts CompanyRobert Accarino, AbbottAudrey Bamberger, Anheuser-Busch, Belardo, WyethMaurice Bechard, JohnsonDiversey, Bowen, The Coca-Cola CompanyJaime Brown, Eli Lilly and CompanyRussell Cerchiaro, Schering-Plough CorporationMark Chatelain, Johnson Controls, Chengalur, Eastman Kodak CompanyStan Christian, Motorola, Constable, GlaxoSmithKlineHelen Corbitt, Eli Lilly and CompanyFrancisco Cordero, The Coca-Cola CompanyRaquel Cordovi, Carnival corporation & PLCRon DiCola.

7 P zer IncRobert Drinane Merck & Company, Fennessey, The Dow Chemical CompanyDoug Finan, GlaxoSmithKlineDon Gebhardt, Ashland Inc. Elizabeth Girardi Schoen, P zer IncAngela Grooms, Duke Energy Debbie Hammond, AbbottMark Hause, DuPontGreg Hill, Novartis CorporationJames Hunn, Carnival corporation & PLCM itch Jackson, FedExBryan Jacob, The Coca-Cola CompanyHimanshu Jani, O wens CorningLeigh Ann Johnston, Tyson Foods, Kearney, Bristol-Myers Squibb CompanyKelley Kline, Smith eld Foods, Lamghari, Schering-Plough CorporationBill Lechner, The Scotts CompanyNancy Liaboe, AbbottKeith Miller, 3 MDean Miracle, Southern Company Ed Mongan, DuPontLeslie Montgomery.

8 Southern CompanyKaren Murphy, Ashland O ssman, Schering-Plough CorporationVivian Pai, Johnson & JohnsonTed Reichelt, Intel CorporationDawn Rittenhouse, DuPontDavid Seep, BNSF Railway CompanyJan Sieving, O ccidental petroleum CorporationLindell Sneed, AbbottLyle Staley, BNSF Railway CompanyAlan Stinch eld, Georgia-Paci c CorporationJim Thomas, Novartis CorporationRobin Tollett, The Procter & Gamble CompanyGeorge Williams, Carnival corporation & PLCCarl Wirdak, O ccidental petroleum CorporationSpecial thanks During the course of the project, members of the GEMI External Advisory Group (EAG) shared their insights into aspects of the metrics process in a series of workshops developed for the GEMI Metrics Work Group.

9 [cXQPSQYQZ`_The following people participated in EAGs and reviewed and commented on the contents of the Metrics Navigator :David Aeron-Thomas, Forum for the FutureKaren Coyne, CoVeris Jean Pogo Davis, ConocoPhillips (Retired); Duke U niversity and Rice U niversityPeter DeSimone, Investor Responsibility Research Center, (IRRC)Patrice Flynn, Flynn Research; Johns Hopkins U niversityCarl-Johann Francke, SAM ResearchAlan Hecht, U .S. EPA Thomas Krick, AccountAbilityJohn Laidlow, HSBCRob Lake, Henderson Global FundJonathan Low, Predictiv LLCMark Milstein, Cornell U niversity, The Johnson School and Center for Sustainable Global EnterpriseEve Mitleton-Kelly, London School of Economics.]

10 Society for O rganizational LearningTom Murray, Environmental DefenseMary Altomare Nattrass, Sustainability PartnersBrian Nattrass, Sustainability Partners Eric O lson, Business for social Responsibility (BSR)Amanda Penn, Ethical Investment Research Services (EIRIS), LondonJames L. Ritchie-Dunham, Institute for Strategic Clarity; Harvard U niversityKirvil Skinnarland, Sustainable Seattle; Trilogy LLC Paul Tebo, DuPont (Retired); The Tebo GroupJack Whelan, International Business Leaders addition, Jean Pogo Davis and Jonathan Low provided input and guidance during the early, formative stages of this project.