CARBON AND ENVIRONMENTAL FOOTPRINTING

1. CARBON AND ENVIRONMENTAL FOOTPRINTING 1 1 1

2. CORPORATE AND PRODUCT EMISSIONS Two viewpoints Corporate: considers activities that create or release emissions Product: evaluates materials and processes required to deliver or produce a product Corporate inventories best capture the aggregate emissions required to operate a company More suitable for accounting-style activities; information based on company records Limited granularity since emissions are aggregated Product inventories best highlight inefficiencies in bringing a good or service to market Good granularity to determine specific emission trouble spots Subjectivity & judgment limit accounting practicality

3. CORPORATE EMISSIONS STANDARDSOnly scope 1 and 2 globally defined today 3 3 3

4. NO CLEARLY ACCEPTED GLOBAL STANDARD TODAY Carbon Trust Established by the British Government in 2001 as an independent company to accelerate the move to a low-carbon economy Works with organizations to reduce carbon emissions and develop commercial, low-carbon technologies Along with Defra, co-sponsors the publication of PAS 2050, a product carbon foot printing standard WRI (World Resource Institute) Following the success of the Corporate Standard and Project Protocol, the WRI/WBCSD GHG Protocol is developing a new standard for product and supply chain GHG accounting and reporting Ecolab participated in the first Product Life Cycle Analysis “Road Test” in spring 2010 ISO (International Organization for Standardization) The world's largest developer and publisher of International Standards Likely to enter the carbon emissions standards space Note: All names and logos mentioned are registered trademarks 4 4

5. CURRENT INDUSTRY POSITION ON FOOTPRINTINGCarbon footprinting position paper excerpt Source: Excerpt from AISE (International Association for Soaps, Detergents and Maintenance Products) Position Paper 5 5 5 • Carbon footprint calculation methodology and supporting data are not yet sufficientlydeveloped to allow meaningful mainstream carbon labeling of individual products • Relevance of on-pack carbon labels for consumers has not been proven, and labeling should be seen as one of a number of ways to communicate with consumers on climate change • The industry is looking for solutions to carbon footprint measurement and on-pack carbon labeling, which: • Are based on sound science • Are both meaningful and helpful in achieving carbon reductions • Form a meaningful part of an overall sustainability implementation strategy • Are actionable from a practical standpoint with a clear benefit/cost ratio • Give preference to a harmonized international standard

6. FOOTPRINTING EVOLUTIONLife Cycle Analysis Several global bodies are driving for more product level transparency The A.I.S.E. mission is to communicate effectively and objectively the values embodied in the industry vision and in related policies to all appropriate stakeholders, whilst taking these stakeholders' views in to account. CDP Water Disclosure provides valuable insight into the strategies deployed by many of the largest companies in the world on water and will help drive investment towards sustainable water use. Water Disclosure The Sustainability Consortium develops transparent methodologies, tools and strategies to drive a new generation of products and supply networks that address environmental, social and economic imperatives. Note: All names and logos mentioned are registered trademarks 6