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Contents 1 Sustaining the Environment 1.1 3M's Environmental Tradition 2 Pollution Prevention Pays (3P) 3 Eco-Efficiency Management & Results 3.1 Driving progress through Corporate Environmental Goals 3.2 2000 — 2005 Corporate Environment Goals and Results 3.3 2005 — 2010 Corporate Environment Goals 3.4 Eco-Efficiency Metrics 3.5 Greenhouse Gas Emissions Reduction Goals 4 Climate Change & Energy Management 4.1 Reducing Greenhouse Gases 4.2 Energy Efficiency 4.3 Investing in Renewable Energy 4.4 Results: 5 Improving Energy Efficiency 5.1 Results: 5.2 Energy Use by Type 6 Reducing Air Emissions 6.1 Results: 7 Water Management 8 Reducing Waste 8.1 Results: 8.2 Rethinking the Definition of Waste 8.3 Results: 9 Enhancing Biodiversity 9.1 Partnering to Preserve Biodiversity 9.2 The Nature Conservancy 9.3 Conservation International

Sustaining the Environment

Source: http://solutions.3m.com/wps/portal/3M/en_US/global/sustainability/management/environment/

3M's Environmental Tradition

 

3M has been working to reduce the environmental impact of its products and processes since the late 1960s. In 1975, 3M’s commitment to the environment was formalized when the Board of Directors adopted the 3M Environmental Policy. This global environmental policy, which is believed to be the first policy with measurable results from a major manufacturing company, is a comprehensive statement of 3M’s environmental commitment with special emphasis on preventing the creation of pollution.

Also in 1975, years before it became clear that environmental and business concerns could be mutually supportive, 3M introduced the voluntary Pollution Prevention Pays (3P) program. The 3P program has been successful beyond our expectations. It also has helped keep 3M facilities ahead of many regulatory requirements. By 2007, 32 years later, 3P ideas and initiatives from employees prevented 2.7 billion pounds of pollutants and saved 3M nearly $1.2 billion.

3P provides much of the philosophical basis for 3M’s environmental, health and safety programs. The prevention, rather than treatment, approach and extensive employee involvement are part of 3M’s culture.

These are found in 3M’s Life Cycle Management process and are emphasized in the company’s environmental, energy, and health and safety policies. Prevention and employee ingenuity also guide our comprehensive Environmental, Health and Safety Management System, which requires continuous improvements toward sustainability through ever tougher environmental targets.

We are pleased with our progress to date in reducing volatile organic air emissions, releases to water and solid waste. 3M has been a leader in addressing climate change through energy efficiency, manufacturing process improvements and developing products that help customers reduce their greenhouse gas emissions.

Looking forward, 3M will continue to set and achieve aggressive environmental, health and safety goals. We will continue to seek partnerships with environmental organizations, such as the U.S. Environmental Protection Agency’s (EPA) Climate Leaders Program, to address climate change and other environmental issues.

And along the way, we will continue to help customers improve their own environmental footprints with energy saving and greenhouse gas reducing products.

Pollution Prevention Pays (3P)

3M's Pollution Prevention Pays (3P) program celebrated its 30th anniversary in 2005. Over the last 33 years, the program has prevented more than 2.7 billion pounds of pollutants and saved nearly $1.2 billion based on aggregated data from the first year of each 3P project. The 3P program helps prevent pollution at the source - in products and manufacturing processes - rather than removing it after it has been created. When 3P was launched in 1975, the concept of applying pollution prevention on a companywide basis and documenting the results was an industry first.

The 3P program was updated in 2002 to provide more opportunities for participation by our research and development, logistics, transportation, and packaging employees with the addition of new award categories and criteria.

3P is a key element of our environmental strategy and in moving toward sustainability. 3P has achieved that status based on our belief that a prevention approach is more environmentally effective, technically sound and economical than conventional pollution controls. Natural resources, energy and money are used to build conventional pollution controls, and more resources are consumed operating them. Conventional control only constrains the problem temporarily; it does not eliminate the problem. 3P seeks to eliminate pollution at the source through:

 

• Product reformulation.
• Process modification.
• Equipment redesign.
• Recycling and reuse of waste materials.

 

The 3P program depends directly on the voluntary participation of 3M employees. Innovative projects are recognized with 3P Awards. A 3P Coordinating Committee representing 3M's engineering, manufacturing and laboratory organizations - and the Environmental, Health and Safety group - administers the program.

3M employees worldwide have completed over 6,800 3P projects. Projects must meet these criteria to receive formal recognition:

 

• Eliminate or reduce a pollutant.
• Benefit the environment through reduced energy use or more efficient use of manufacturing materials and resources.
• Save money - through avoidance or deferral of pollution control equipment costs, reduced operating and materials expenses, or increased sales of an existing or new product.

 

A special award also recognizes projects that demonstrate technical innovation.

 

Eco-Efficiency Management & Results

Driving progress through Corporate Environmental Goals

3M has been working to reduce its environmental footprint through corporate environmental goals since 1990. In 2005, 3M completed one set of five-year corporate environmental goals and launched another. 3M's 2005 - 2010 Corporate Environmental Goals, like the 2000 - 2005 Corporate Environmental goals before them, address environmental issues through eco-efficiency and pollution prevention metrics and are complemented by individual business unit goals that incorporated product life cycle management within the unit's strategic plan.

2000 — 2005 Corporate Environment Goals and Results

	Goal	Results
Reduce volatile air emissions indexed to net sales	25%	58%
Reduce U.S. Environmental Protection Agency Toxic Release Inventory Releases (TRI) indexed to net sales	50%	64%
Improve energy efficiency (energy use indexed to net sales)	20%	27%
Reduce waste indexed to net sales	25%	30%
Double the number of Pollution Prevention Pays (3P) projects from the previous five-year period from 194 to 400 projects	400	1262

 

2005 — 2010 Corporate Environment Goals

 

In 2005, 3M established a new set of five-year corporate environmental goals. By 2010 3M strives to:

 

• Reduce Volatile Air Emissions by 25%.
• Improve Energy Efficiency by 20%.
• Reduce Waste (NonProduct Output) by 20%
• Complete 800 Pollution Prevention Pays projects.

(All goals are indexed to net sales, except 3P projects. 3M had a TRI releases reduction goal under its 2005 Corporate Environmental Goals program. Since most of 3M's TRI releases are volatile air emissions, these releases are addressed by 3M's volatile air emissions reduction goal under the 2010 Corporate Environmental Goals program.)

 

Eco-Efficiency Metrics

 

Here are our most recent EHS Scorecard results detailing critical eco-efficiency performance at 3M operations:

	2005 Base Year	2006	2007	Goal (2010)
VOC (lbs/$million sales)	710	590	520	530
TRI Releases (lbs/$million sales) (US only, TRI Releases based on year reported and sales based on year released)	220	170	150	N/A
Energy (million BTU/$million sales)	1,330	1,190	1,195	1,065
Waste (includes offsite recycling) (lbs/$million sales)	30,650	29,700	27,130	24,500
3P Projects	1262*	364 (in 2006 alone)	438 (in 2007 alone)	800**
3P Savings	$181,900,000*	$52,700,000 (in 2006 alone)	$91,400,000 (in 2007 alone)	N/A
3P Pollution Prevented (tons)	516,000*	35,000 (in 2006 alone)	56,600 (in 2007 alone)	N/A

 

Note: Energy, Waste, VOC, and TRI Releases data are normalized to $1 million of net sales.
Note: 1 pound (lb) = .454 kilograms

* Five-year total for 2001-2005
** Five-year total for 2005-2010

 

Greenhouse Gas Emissions Reduction Goals

 

3M has two goals to reduce both Kyoto and non-Kyoto greenhouse gas (GHG) emissions.

Goal:	To reduce absolute, worldwide GHG emissions by 50% (from a 1990 base year).
Progress:	As of 2007, 3M has reduced worldwide, absolute GHG emissions by 62% from a 1990 base year.
Goal:	To reduce absolute GHG emissions in the United States by 30 percent by 2007 (from a 2002 base year). This goal was set as part of 3M's participation in the U.S. Environmental Protection Agency through the Climate Leaders program.
Progress:	In 2007, 3M exceeded its goal by reducing U.S., absolute GHG emissions by 60% from a 2002 base year.

	1990	2002	2003	2004	2005	2006	2007	Goal
U.S. GHG Emissions		16.3	15.9	11.4	9.6	8.1	6.7	11.4
Worldwide GHG Emissions	22.1	17.8	17.9	13.5	11.6	10.3	8.5	11.05

 

Climate Change & Energy Management

 

 

Reducing Greenhouse Gases

 

Greenhouse gas (GHG) emission reductions are a priority for 3M. Although the science of global climate change is evolving, 3M is taking voluntary, responsible action to reduce GHG emissions. 3M set a goal to reduce our worldwide GHG emissions by 50% (from a 1990 base year). In addition, 3M is partnering with the U.S. Environmental Protection Agency through the Climate Leaders program to reduce our U.S. GHG emissions by 30 percent by 2007 (from a 2002 base year).

The emission-reduction goals include both Kyoto and non-Kyoto gases and are being accomplished through manufacturing process improvements, energy conservation and additional pollution control equipment.

In tracking our progress towards our GHG goals, 3M has developed a worldwide GHG inventory and has received third-party verification of this inventory. Our inventory was developed using the World Resource Institute/World Business Council for Sustainable Development GHG Protocol. 3M's corporate-wide inventory includes emissions from the following sources:

• Direct emissions of CO2 from stationary combustion of fossil fuels, waste and solvents.
• Indirect emissions of CO2 from the use of electricity and steam.
• Direct emissions of CH4 from wastewater treatment.
• Direct emissions of CO2 from 3M-owned and leased mobile sources.
• Direct, process-related emissions of other greenhouse gases.

3M's 1990 and 2000 GHG inventories were validated by CH2M Hill and its 2002 GHG inventory was externally verified by CH2M Hill. 3M has used the same processes to develop its subsequent GHG inventories.

 

Energy Efficiency

 

Energy efficiency is an important part of reaching our GHG reduction goals. Strong energy conservation strategies have helped us achieve a 80 percent improvement in energy efficiency since 1973. Since 1990, our energy requirements have increased with the installation of energy-intensive, pollution control equipment to reduce emissions of volatile organic compounds (VOCs). At the end of 2006, 3M had reduced VOCs by 95% from 1990 levels. 3M has been making advances in solventless technology since 1990. As 3M's solventless manufacturing processes advance, the need for emission controls and associated energy demands will decrease. More Information on 3M's energy management.

 

Investing in Renewable Energy

 

3M is also working to manage its greenhouse gas emissions impact by purchasing and installing on-site renewable energy.

 

• In 2006, 3M entered into a new agreement to purchase livestock-derived methane for its Prairie du Chien, Wisconsin plant. By mid-2008, the plant expects to get 11% of its energy use from this renewable source offsetting approximately 1,908 metric tons of greenhouse gas emissions.
• In 2006, 3M's Perth, Canada plant began installing a 2,000 square foot solar wall on the south side of the warehouse. The solar wall is expected to displace 329 million Btu's of electricity for the site each year. The new wall will both preheat the air and reduce the building transmission loss.
• 3M has been purchasing wind energy at its Austin, Texas location since March of 2001. This location purchases approximately 1,250,000 kWh annually equaling 13% of its annual energy use.

 

In addition, 3M is also exploring opportunities to utilize landfill gas, on-site and off-site wind energy, and biodiesel at other 3M locations.

 

Results:

 

• 3M reduced worldwide, absolute GHG emissions, in 2007, by 62% from a 1990 base year.
• 3M reduced U.S., absolute GHG emissions, in 2007, by 60% from a 2002 base year.
• In 2005, 3M exceeded its goal to reduce energy use indexed to net sales by 20% off a 2000 base year, reducing energy use by 29%.
• 3M reduced worldwide energy use (indexed to net sales) at its operations by 37 percent from 1998 - 2007.
• 3M reduced U.S. energy use (indexed to net sales) at its operations by 78 percent from 1973 - 2007.

 

Improving Energy Efficiency

 

3M's energy efficiency efforts date back to 1973, when the 3M Energy Management Department was formed. Improvements result from employee programs that increase energy efficiency of existing operations, new equipment and facilities designed to be energy efficient, and the development of new, more energy efficient 3M products and processes. Using Life Cycle Management, new product development teams work to improve the energy efficiency of 3M products. They consider energy efficiency in their choices of raw materials, product formulations and manufacturing processes.

To drive continuous improvement in energy management, the company has set a goal to improve energy efficiency by 20% from 2005 - 2010. This goal is on top of previous energy efficiency efforts which have achieved 80 percent improvement in energy efficiency at 3M's U.S. operations since 1973 and 41 percent improvement in energy efficiency at 3M's operations worldwide since 1998.

During 2007, 3M implemented 187 energy projects which saved over $10.6 million. 3M has realized $26 million of energy savings from its 2005 base year by implementing more than 400 employee-inspired projects. We continue to adopt new methods to improve energy-efficiency, including the use of Six Sigma methodology and increasing our use of alternative, renewable energy.

Results:

• 80 percent improvement in energy efficiency at 3M's U.S. operations since 1973
• 41 percent improvement in energy efficiency at 3M's operations worldwide since 1998
• 18 percent improvement in energy efficiency from 2005 – 2007

 

Energy Use by Type

 

Energy Source*	2006 Use (MMBtus)	2007 Use (MMBtus)
Electricity	9,342,000	9,593,000
Steam	826,000	819,000
Natural Gas	15,000,000	15,227,000
Fuel Oil (Number 1, 2, & 6)	1,500,000	1,076,000
Gasoline & Diesel	330,000	363,000
Propane & Jet Fuel	420,000	354,000
Total	27,400,000	27,400,000

*Data covers 100% of manufacturing facilities and any 3M location greater than 2,800 square feet.

 

 

 

Reducing Air Emissions

 

Water Management

 

Water use and water quality are important global issues and 3M continues to work toward reducing our water releases and use. We have been actively managing our water releases for many years. 3M wastewater receives a high degree of treatment to reduce its environmental impact. We continue our improvement efforts today by investing in further pollution prevention projects and pollution control equipment. In addition, 3M has been preventing water releases through the Pollution Prevention Pays (3P) program for over 30 years. Since 1975, 3M has prevented over 110 million pounds of water releases (based on aggregated data from the first year of each project).

3M is also working to reduce our water consumption through recycling and improvements to our buildings and manufacturing processes. In 2005, 3M began a formal program to track and manage water use on a corporate level.

Reducing Waste

Waste minimization is 3M's most important strategy for reducing environmental releases. Waste is mostly unused raw materials. The purchase of raw materials for manufacturing 3M products is a significant expense. So wasted raw materials (waste generation) is a financial, as well as an environmental, issue.

Results:

Rethinking the Definition of Waste

In 2005, 3M set a new goal to reduce waste indexed to net sales in 2010 by 20% from a 2005 base year. Along with setting a new goal, 3M also revised its definition of waste for the purpose of tracking progress towards this goal. Under the new definition, 3M considers materials recycled outside 3M to be waste. While recycling will remain an important mechanism for 3M to reduce its environmental footprint, preventing the generation of waste in the first place is a more sustainable approach. In addition, opportunities for reducing solid waste are limited by a deteriorating market for recycled raw materials. 3M's future progress will rely primarily on pollution prevention, design changes in products and process, and on internal recycling/reuse programs. These take longer to accomplish, but can have more impact. Waste reductions reported in this report do not include recycled materials to be waste.

• 11% reduction in waste indexed to net sales (using the new definition described above) from 2005 - 2007

Results:

Millions of Pounds of Waste by Recycling, Reuse, & Disposal Type
	2005	2006	2007
Offsite Reuse*	7,582	6,730	6,635
Onsite Recycle + Reuse	3,929	3,690	2,859
Sources Defined as Waste for 3M's 2005-2010 Waste Reduction Goal
Offsite Recycle	251	265	264
Treatment/ Incineration	104	100	96
Landfilled Waste	216	224	227
Waste-to-energy	78	91	78
Total Waste	649	680	665
Total Waste Indexed to Net Sales (million pounds / million dollars)	0.0307	0.0297	0.0271
Total Recycling & Reuse	11,762	10,685	9,758

* 3M's "Offsite Reuse" and "Onsite Recycle + Reuse" values are significantly impacted by the reuse/recycling of mineral fines produced as a byproduct during the producing of 3M roofing granules.

 

Enhancing Biodiversity

Partnering to Preserve Biodiversity

Enhancing and preserving biodiversity is an important part of 3M’s value of respecting our social and physical environment. 3M has been working to preserve biodiversity both on our property and through our support of organizations like The Nature Conservancy and Conservation International.

The Nature Conservancy

Over the last few years, the 3M Foundation has donated over $5.5 million to The Nature Conservancy to preserve habitat in the United States and Brazil. This partnership is helping to safeguard critical habitat and preserve biodiversity in Minnesota, Texas and the Santa Ana Mountains in California, one of America’s most species-rich ecological regions.

At the same time, the partnership involves 3M employees and local residents. Besides increasing the amount of protected lands for migration zones, endangered wildlife and rare indigenous plants, we are working together to improve visitor access and learning opportunities for the public. In Brazil, a 3M grant is helping The Nature Conservancy preserve the concentration of unique and threatened plants and animals that can only be found in Brazil’s Atlantic Forest. Less than 8 percent of the original tropical forest remains today. The purchase of nearly 2,400 acres will manage and protect it from further clearing and environmental threats.

In 2007, 3M donated $1.5 million to the Nature Conservancy’s Forest Legacy Partnership in Minnesota. The Partnership’s objectives are to:

Conservation International

3M is working with Conservation International to protect endangered wildlife and restore the threatened forests in China through a $3 million multi-year grant from the 3M Foundation. The Mountains of Southwest China are home to rare giant pandas, red pandas, golden monkeys, elusive snow leopards, more than 685 bird species, as well as 12,000 species of trees and plants. Many of these species are unique to this area that has become one of the world’s most critically threatened biodiversity hotspots.

In 2007, 3M built upon these efforts by extending its donation and giving an additional $1 million to Conservation International’s Forest Restoration for Climate, Community, and Biodiversity project. The extension will address water issues resulting from forest degradation. Conservation International will:

• Assess and prioritize freshwater biodiversity conservation sites and develop a strategic plan for designing payments for watershed services that would lead to a series of pilot demonstration projects to be implemented as a second phase after this initial bridge grant;
• Design a financing mechanism to support Freshwater conservation - The China Freshwater Fund; and
• Raise the awareness of Chinese and international audiences of the importance of presenting China's biodiversity.

 

Project Location	Region & Country	Partner	3M Support	Acres Protected with 3M Support	Activity (* indicates this is a future activity)
Capitão Reserve & Nova Angélica Reserve	Southern Bahia, Brazil	The Nature Conservancy	$600,000	3,045	Land acquisition
Calakmul Biosphere Reserve	Yucatan Peninsula, Mexico	The Nature Conservancy	$535,000	26,500	Land acquisition
Paint Rock River Watershed	Alabama, United States	The Nature Conservancy	$2,975,000	3,893	Land acquisition
				26,559	Transactions/restoration supported by 3M funds
Ordway/Glacial Lake	Minnesota, United States	The Nature Conservancy	$1,500,000	850	Land acquisition
Tallgrass Aspen Parklands	Minnesota, United States	The Nature Conservancy	$1,700,000	10,400	Land acquisition
Sourland Mountains	New Jersey, United States	The Nature Conservancy	$1,500,000	286	Land acquisition
				2,100	Transactions/restoration supported by 3M funds
Lower Rio Grande Valley	Texas, United States	The Nature Conservancy	$1,950,000	23,000	Land acquisition
Nemadji State Forest	Wisconsin, United States	The Nature Conservancy	$550,000 (Land Value)	520	3M land donation
	Yunnan, China	Conservation International	$3,000,000	108	reforestation / restoration
	Yunnan, China	Conservation International		6,537	* will be reforested / restored in 2008
	Sichuan, China	Conservation International		6,903	reforestation / restoration

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