polaroid corporationâ€™s 2000 sustainability report

1 Polaroid Sustainability Report 2000

Polaroid Corporation’s 2000 Sustainability Report


About this report

This publication is Polaroid Corporation’s 13th annual report on the environment.New this year, we are using the new Global Reporting Initiative (GRI)“Sustainability” format and the questions recommended by the Coalition forEnvironmentally Responsible Economies (CERES) to present the data.

In 1989, Polaroid first began reporting on its environmental performance (forcalendar year 1988) to show its commitment to the important issues that affect thehealth and safety of our employees, as well as the communities and the environmentwhere we work. Six years later, we publicly affirmed our belief in the necessity forprotecting the Earth by endorsing the CERES principles; a 10-point code of conductthat companies can follow to help become responsible stewards of the environment.

Today, our annual report on the environment also includes matters related to“sustainability,” which Polaroid generally defines as “using resources today in amanner that meets our needs without compromising future generations.” In thisreport, we have combined the GRI guidelines with CERES questions from theprevious year, to provide a more useful document to help stakeholders chart ourprogress. In addition to environmental issues, we will also discuss economic andsocial performance.

For your convenience, here are some related web sites that also may be of interest:

• Information about Polaroid and its products is available online atwww.polaroid.com

• The Polaroid Corporation 2000 Sustainability Report can be foundelectronically on the Web at our home page: http://www.polaroid.com/ under“Company Information,” or use the a direct link athttp://www.polaroid.com/polinfo/environment/index.html

• Past issues of Polaroid’s Report on the Environment can be found athttp://www.polaroid.com/polinfo/environment/index.html

• A description of the Polaroid Foundation, which supports activities thathelp people in our local Massachusetts communities who are in need buildskills that are useful for them, can be found atwww.polaroid.com/polinfo/foundation

• Information on the World Wildlife Federation’s Climate SaversGreenhouse Gas Reduction program is available online atwww.worldwildlife.org/climate

• CERES’ (Coalition for Environmentally Responsible Economies) website is www.ceres.org

• More on GRI, the Global Reporting Initiative, which developed globallyapplicable guidelines for reporting on the economic, environmental, and socialperformance of companies, is available at www.globalreporting.org

http://www.polaroid.com/


http://www.polaroid.com/polinfo/environment/index.html

http://www.polaroid.com/polinfo/environment/index.html

http://www.polaroid.com/polinfo/foundation

http://www.worldwildlife.org/climate

http://www.ceres.org/

http://www.globalreporting.org/


• For more on Polaroid Corporation as part of “The 100 Best CorporateCitizens for 2001,” go to http://www.business-ethics.com/100best.htm.

Our commitment to sustainability reportingPolaroid will continue to collect information to improve our sustainability reportingas we have in the past 13 years of environmental reporting. We are committed toachieving the goals of sustainability and plan to continue reporting our progress on aregular basis.

http://www.business-ethics.com/100best.htm


Content summary

About this report A brief discussion about this report, sustainability, sources of information on Polaroid,CERES and GRI and future reports page 2

CEO statement / GRI section 1 A look at the progress we have made in the year 2000 page 6

Company profile / GRI section 2Who we are (including a description of our Health, Safety and the Environment staff),what we do and where we are located page 8

Executive summary and key indicators / GRI section 3How we performed in the environmental, economic and social aspects of our business

page 11Vision and strategy / GRI section 4Our plan to be a leader in providing instant digital image capture, sharing and printingwith minimal impact on the environment page 16

Policies, organization and management system / GRI section 5The why and how of what we do page 17

Performance / GRI section 6How we measured up in 2000

Environmental page 34Economic page 47Social page 49

AppendicesA. Key environmental policies page 56B. 2000 Annual Report page 58

C. CERES Principles page 59D. Supplier Principles of Conduct and other practices page 61


E. PP101 – General Statement of Policy page 62F. Toxics Release Inventory data 1999 and 2000 page 65

Polaroid and I-Zone are registered trademarks of Polaroid Corporation, Cambridge,Massachusetts.

This report has been copied on New Leaf, 100% post-consumer recycled ENCORE 100brand, 8 ½” x 11”, white, 85 bright, 20#, processed chlorine free, multi-use office copypaper.


CEO statement / GRI section 1

At Polaroid, environmental sustainability means using our resources wisely todayto continue to meet our ongoing business needs for the future. We are committedto the development of sustainable business practices, and will continue to reporton our progress in achieving our environmental goals, as we have for more than10 years now.

The year 2000 was an important transition year for the company, with recordcamera sales and exciting new product lines featuring our digital imagingproducts. We also continued to improve some measures of our environmentalperformance as we worked diligently to improve revenue, earnings and cash flow.

Despite our current business challenges, we have had a number of successes,some of which include:

-From a financial perspective, we completed our second consecutive profitableyear; however, we expected our top- and bottom-line growth to be more robust,especially during the second half of the year.

-We sold 13.1 million instant cameras in 2000, more instant cameras than anyyear in our history.

-Additionally, we sold 1.3 million digital cameras, putting Polaroid in thenumber-one position in the digital camera category in the U.S. food, drug andmass merchandise distribution channel.

-The company also introduced numerous products and product improvements fora wide variety of applications in all of our sales regions -- the Americas, AsiaPacific and Europe.

-In 2000, we also developed two new non-silver halide digital media, which willhelp form the core of our strategy for making digital picture printing fast, easyand affordable.

-On another positive note, Business Ethics Magazine named Polaroid to its “Top100 Companies” listing for our leadership in the area of innovative, people-oriented business programs. In addition, the company’s donations to communityprograms totalled $2,839,000, including donations through the Polaroid Fund ofthe Boston Foundation of $1.3 million dollars in Massachusetts, exemplifying ourcommitment to people and the community.

Also in 2000, I spoke with Polaroid’s worldwide Health, Safety and Environment(HSE) staff, product managers and designers, on the role each of us has inmanaging the many requirements for environment and safety that products mustmeet in today’s worldwide marketplace. One notable accomplishment in this area:We achieved reductions in total waste and energy despite the increase in productmanufacturing volumes in our business this year.


We also continued to improve our environmental and safety performance amid ahighly competitive business climate. Employees, for instance, set a new safetyrecord with our lowest-ever OSHA-recordable incident rate -- 1.36 per 100employees. We had a modest increase in our Toxics Release Inventory numberswhile we continued a decline in total energy use, greenhouse gas emissions andsolid non-hazardous waste generation.

Looking ahead at 2001, the company faces substantial challenges in several areasincluding the environment. We began the year with a sharp decline in ourtraditional instant film business as major customers trimmed inventories andreduced orders. Consequently, we are faced with maintaining production andenvironmental efficiency as inventories significantly change to meet the change incustomer order patterns.

Most recently, the country appears to be trending toward recession. Now theevents of September 11 have shocked the world and the worldwide economy.Subsequent events may further disrupt the world at large in ways we cannot yetknow.

Within this context, Polaroid is in the midst of a financial and operationalrestructuring of the company. This is a difficult undertaking and we are focusingvirtually all of our short-term efforts on cash generation and cash management, aswe implement a number of initiatives aimed at strengthening our overall financialperformance.

As we move forward, we plan to continue our commitment to the environment.Amid our daily challenges, we remain steadfastly committed to the health andsafety of our employees as well as the communities and environment in which wework.

Thank you for your interest in Polaroid and for your continued support of theenvironment.

Signed,

Gary T. DiCamillo

Chairman and Chief Executive Officer

Polaroid Corporation

October, 2001


Company Profile / GRI Section 2

Polaroid Corporation is the worldwide leader in instant imaging. Headquartered inCambridge, Massachusetts, the company designs, develops, manufactures and marketsinstant and digital imaging and related products worldwide.

Our principal products are instant film, instant and digital cameras, digital peripherals andsecure identification systems with software and system solutions. They are usedprimarily in amateur and professional photography, industry, science, medicine,government and education.

Each year, in October, Polaroid releases its environmental report for the previous year sowe may include U.S. Toxics Release Inventory data. Except where noted, this reportcovers all wholly owned Polaroid manufacturing operations worldwide and one jointventure in Shanghai, China.

The report also includes all major Polaroid activities for the year 2000, including themanufacture of instant film, cameras, digital imaging devices, and ID systems. Virtuallyall of the company’s 2000 revenues were derived from the sale of Polaroid products orreal estate sales.

In the year 2000, in addition to its Cambridge headquarters, Polaroid maintained sites inseveral other Massachusetts communities—including one each in Bedford, New Bedford,Norton, Newton and Norwood, Wayland, two in Waltham, and several buildings inCambridge. Outside the U.S., Polaroid operates wholly owned manufacturingsubsidiaries in Queretaro, Mexico; Enschede, The Netherlands; and the Vale of Leven,Dumbarton, Scotland. As noted above, we also have a joint venture manufacturing plantin Shanghai, China.

During the year, the company sold properties in Santa Ana, Calif., Cambridge andWaltham, Mass. In Santa Ana, the company relocated the distribution center to a newsite, which now includes regional packaging operations to better meet regional customerrequirements with less wasted packaging. Polaroid sold property in Cambridge and isnow leasing it back until research activities are moved to be co-located withmanufacturing in Waltham. In selling property in Waltham, the company eliminatedunused space after Polaroid sold its Graphics Imaging business while maintaining alimited stake in the new company.

Here are some other relevant facts about the company in recent years:

Total worldwide employees

1998: 9,274 1999: 8,784 2000: 8,865


Yearly revenue

1998: $1.8 billion 1999: $1.9 billion 2000: $1.85 billion

Sales by region

1998 1999 2000 (in billions)

Americas $1.13 $1.23 $1.28

Europe $0.45 $0.43 $0.35

Asia Pacific $0.27 $0.32 $0.29

Contingencies (related to the environment)As stated in the Polaroid Corporation 2000 Annual Report, “The company, together withother parties, is currently designated a Potentially Responsible Party (PRP) by the UnitedStates Environmental Protection Agency and certain state agencies with respect to theresponse costs for environmental remediation at several sites…Due to a wide range ofestimates with regard to response costs at those sites and various other uncertainties, thecompany cannot firmly establish its ultimate liability concerning those sites. In each casein which the company is able to determine the likely exposure, such amount has beenincluded in the company’s reserve for environmental liabilities. Where a range ofcomparably likely exposures exists, the company has included in its reserve at least theminimum amount of the range. The company’s aggregate reserve for these liabilities asof December 31, 1999 and December 31, 2000 was $1.4 million and $.8 millionrespectively, and the company currently estimates that the majority of the reserve will bepayable over the next two to three years.” (For full text, see Appendix B, page 58.)

Health, Safety and Environmental (HSE) staffIn 2000, Polaroid’s staff of 34 environmental professionals included nine employees withcorporate-wide responsibilities; three environmental regulatory experts, an environmentalregulatory expert with purchasing experience and responsibility, two safety experts, anindustrial hygiene expert, an environmental, health and safety attorney and a divisionalvice president. All others are individuals assigned to environmental or health and safetymanagement in specific facilities worldwide, reporting into line management. TheCorporate HSE staff reports to the division vice president of Health, Safety andEnvironmental Affairs. These employees are qualified by education, regulatoryknowledge and work experience as well as the ability to manage people and projects.

Company restructuringMajor changes have occurred in the past few years that have affected the way weoperate. For example, at the end of 1997, Polaroid began a series of broad-based


programs to streamline worldwide operations and enhance earnings byconsolidating and selling manufacturing facilities and reducing its corporateoverhead structure. That effort continues today. Also in 1999, the company soldits Graphics Imaging business along with other less profitable businesses as itbegan to refocus operations. We also expanded film production for the popular I-Zone camera in Mexico and Europe. (Also see, “CEO Statement,” page 6.)

Contact informationPolaroid publishes financial and environmental data annually. You can find out moreabout these issues by logging on to our Web site at, www.polaroid.com, and lookingunder “Company Information.” (Also see, “About this report” on page 2 for a listing ofother related Web sites.)

Specific questions or comments on the report should be directed to:

Stephen GreeneCorporate Environmental ManagerPolaroid Corporation1265 Main St., W2-MezWaltham, MA 02451Phone: 781-386-6214Fax: 781-386-6163E-mail: [email protected] website: www.polaroid.com


mailto:[email protected]



Executive summary and key indicators / GRI section 3

In combining the GRI guidelines with CERES questions from the previous year topresent our 2000 data on the environment, we hope this report will provide a moreuseful document for stakeholders to chart our progress.

2000 sustainability measurementPolaroid uses three primary methods to measure the environmental impact of itsoperations: an annual environmental compliance scorecard, a program of internalaudits and the SARA Toxics Release Inventory. Here is a list of other key indicatorsof our performance followed by brief descriptions below.

Economic SalesProfit

Social OSHA numbersDonations

Environmental EnergyWaterToxics Release Inventory (TRI) dataWasteGreenhouse Gases (GHG)

EconomicIn 2000, Polaroid ended the year with worldwide profits of $109 million, comparedwith $108 million in 1999. Worldwide net sales decreased six percent to $1.85million in 2000 compared with $1.98 million in 1999. Our new products strategycontinued to gain momentum, while at the same time, we saw a decline in ourtraditional instant film business. Our digital camera held the number one positionwithin its category in the U.S. food, drug and mass merchandise distribution channel.(Also see, “CEO Statement,” page 6.)

Year Sales Net Earnings /(loss) Diluted Earnings/(loss) (millions) ($ millions) per common share

2000 $1,855.6 $37.7 $0.84

1999 $1,978.6 $8.7 $0.20

1998 $1,845.9 ($51.0) ($1.15)


Social

Safety record set As seen in the chart below, Polaroid measures employee safety through monitoringOSHA-recordable incidents and worker lost-time worldwide. This year, despite ahighly competitive business climate, employees set a new safety record with ourlowest ever OSHA-recordable incident rate, 1.36 per 100 employees.

Annual OSHA-reportable injury rates (per 100 employees)

Data type 1998 1999 2000* Reportable incidents 1.45 1.51 1.36

Lost-time rate 0.56 0.53 0.75

Lost-time days 5.77 5.06 4.50

(*1998 and 1999 numbers are for employees only; 2000 includes employees andcontract workers in Polaroid manufacturing to reflect GRI reporting questions.)

DonationsPolaroid continued its donations to community from the company and employees aswell as through the Polaroid Fund of The Boston Foundation. A total of $2,839,000in financial grants, product donations and other disbursements, compared to$2,345,000 in 1999, was given to non-profit organizations to help disadvantagedpeople improve their lives.

Environment

Energy use Year Gigajoules Indexed to square meters film sold

2000 2,254,817 0.166

1999 2,348,499 0.161

1998 2,426,840 0.180


Greenhouse Gases (GHG) 2000 219,920 tonnes (metric)

1999 217,271 tonnes

1998 229,064 tonnes

Water use 2000 769,829 cubic meters

Waste 2000 348 tonnes for non-U.S. chemical waste

(Note: Shown here and seen below are totals of regulated chemical waste andunregulated solid waste. This data is incomplete for this year, but will be compiledfor future reports. Only data on non-U.S. chemical waste along with total unregulatedsolid waste was available at time of publication.)

Total non-hazardous solid waste 2000 8,163 tonnes

1999 9,705 tonnes

1998 10,143 tonnes

Toxics Release Inventory (TRI) data totals (Also, see Appendix F, page 65 for more information.) 2000 2,185 tonnes

1999 2,162 tonnes

1998 2,366 tonnes

Other measures

Environmental scorecardThe environmental scorecard helps us monitor and report on significant instances ofnon-compliance. This tool targets improvement in achieving full and sustainedcompliance with all applicable laws and regulations. Since 1995, the company’s plantmanagers have been required to submit a written account of all excursions and


incidents that occur at their facilities as well as appropriate corrective measuresintended to prevent recurrence. “Zero excursions” is the corporate goal with“excursions and incidents ” defined as legal discharges that exceed permit limitationsand spills or releases.

Audit programFormal Health, Safety and Environmental (HSE) audits were performed and theresults were provided to senior management and division management and used topropagate best practices across divisional boundaries. The HSE corporate auditcommittee ensures the quality, consistency and effectiveness of the HSE audits. Asignificant change from 1999 was the use of external auditors instead of internalauditors to perform audits on the company’s U.S. facilities.

Year 2000 program priorities

Polaroid’s top priority for its Health, Safety and Environmental (HSE) program is tosustain and improve HSE performance as the company emerges from major structuralchange. Two programs in place for achieving this goal are: the Product StewardshipProgram and upgrading the HSE Management System. Efforts to better manage ourperformance also continue.

Managing performancePolaroid is in the midst of fundamentally changing the way it operates to meetoperational goals. A major challenge for HSE professionals within the neworganization is to position environmental and safety issues effectively to ensure thatthey remain visible, relevant and central to the company’s business focus. A majorstep toward this goal is the creation of the Product Stewardship council, which directsimplementation of the Product Stewardship policy. The policy outlines theresponsibility of business unit managers for meeting HSE goals.

Product StewardshipAt Polaroid, we also require that design teams incorporate health, safety andenvironmental concerns into the design process from the earliest stages of newproduct development. As part of this process, we have established safety andenvironmental design criteria aimed at creating products with the least impact to theenvironment. The continuing challenge here is to anticipate and manage thenumerous regulatory requirements that countries worldwide have enacted to ensuresound business decisions are being made every step of the way while we reduce cost.

HSE Management System upgradeThroughout the next two years, Polaroid’s Office of Health, Safety andEnvironmental (HSE) Affairs will continue implementing the HSE strategy andupgrade the HSE Management System to increase efficiency.


Year 2000 accomplishments

Among many notable accomplishments in 2000, Polaroid earned high ratings for itsHealth, Safety and Environmental (HSE) performance, continued to maintain itssuperior safety record, began the second year of a second-generation energymanagement and conservation program, continued the implementation of its five-yearHSE strategy, held a worldwide HSE meeting and updated the HSE guidelines. Safety recordIn 2000, Polaroid had its best-ever OSHA-reportable injury and accident rates. WhileOSHA statistics are U.S. based, the same calculating method was applied worldwideat our manufacturing plants. Contributing factors for our success include bettermethods of investigating and learning from workplace injuries, an expandingergonomics program and training programs that stress individual responsibility forsafety in the workplace.

Worldwide HSE meetingThe company brought together HSE members from facilities worldwide for sharingand strategic planning sessions. Polaroid’s CEO addressed the group, which alsoincluded many product designers and managers of Product Teams. He spoke aboutthe role each of us has in managing the many requirements for environment andsafety that products must meet in today’s worldwide marketplace.

Community involvementPolaroid continued its longstanding policy of communication and environmentalcommitment to the communities around its plants through community meetings andsponsoring events such as Earth Day Celebrations, and watershed protection.Polaroid also continued active participation in two important Massachusettsenvironmental organizations, the Environmental Federation of New England and theCharles River Watershed Association.

Local environmental performancePolaroid’s manufacturing plant in Queretaro, Mexico received a “Clean IndustriesCertificate,” and the company’s facilities in the U.S. maintained substantialcompliance with their numerous health, safety and environmental requirements.

Greenhouse Gas ReductionPolaroid, the World Wildlife Fund (WWF) and the Center for Energy & ClimateSolutions (CECS) announced an innovative new agreement to cut Polaroid’s carbondioxide emissions at least 20 percent by 2005, compared to 1994 levels, and 25percent by 2010. More information on Climate Savers is available on-line atwww.worldwildlife.org/climate.



Vision and strategy / GRI section 4

Polaroid’s vision for the future is to be to digital imaging, what it was to opticalimaging. That is, we will provide simple, easy-to-use, instant, picture-printing devices– and, specifically, the consumable media for instant digital printing.

In support of this vision, we will conduct our business in compliance with applicablerequirements and in a sustainable manner. We define “sustainability” as: “usingresources today in a manner that meets our needs without compromising futuregenerations.” (See more on Sustainability, page 19.) This means we will be efficient in our use of resources with minimal impact to theenvironment from both our manufacturing processes and products. Polaroid will useprofits from its business to support community and social programs that benefit peopleoutside the financial umbrella of our wage and local tax payments. We will usepartnerships and joint ventures to leverage our strengths through other relevantcompanies to be efficient and innovative. We will maintain our core policies thatsupport this vision.

Our business strategy is to provide our customers with digital image printing solutions,while managing our business for efficiency and profitability. To accomplish this, wewill design, manufacture and manage our products and run our business consistent withour established policies. These policies are discussed in the next section. In summary,they detail the value we place on our employees, our ethical standards for running ourbusiness and working with our vendors, our commitment to providing a safe workplace,sound products and protection of the environment.


Policies, organization, and management systems / GRI section 5

Corporate policies related to sustainability

Policy IssueDate

LatestRevision

GeographicScope

PubliclyAvailable?

CorporateEnvironmentalPolicy*

1977 1998 Worldwide Yes

Toxic Use andWaste ReductionProgram (TUWR)

1988 1997 Worldwide Yes

Endorsement ofCERES Principles**

1994 N/A Worldwide Yes

EnvironmentalVision

1994 N/A Worldwide Yes

Product StewardshipPolicy*

Personnel Policy 101

Supplier Principles

Business ethics

1998

1967

1995

1997

N/A

1997

N/A

N/A

Worldwide

Worldwide

Worldwide

Worldwide

Yes

Yes

Yes

Yes

* Please refer to Appendix A for the full text of these policies.** Please refer to Appendix C for the full text of the CERES Principles.

As seen in the chart above, all Polaroid environmental policies are worldwide inscope to the extent appropriate and practical. HSE performance is monitored at allmanufacturing locations. All sites are encouraged to exceed local standards forcompliance. Where preferred technologies for waste management are not available,Polaroid facilities are encouraged to use the best available alternative technology.

In addition, many Polaroid HSE policies and guidelines set standards that exceedregulatory limits. For example, company guidelines for employee exposure topotentially hazardous materials are more restrictive than industry norms. Also,Material Safety Data Sheets for all production chemicals are provided, includingchemicals that do not meet the definition of “hazardous” under the HazardCommunication Standard of some of the countries in which we manufacture.


All policies are supported by detailed guidelines. The policies and guidelines arereviewed and updated as appropriate. Polaroid has had its policies and guidelinesavailable in print from as far back as the late 1970s, but most were created or revisedin the 1980s. Polaroid has further updated many of these policies and guidelines andmakes them available to all employees through our company Intranet.

Polaroid policies – a brief history

Throughout its history, Polaroid has put into place policies that put people first. Thesepolicies were innovative and leading edge when introduced. They recognized thevalue and contribution every employee can make to the company when given theopportunity, and that belief still prevails today.

We continue this philosophy in present versions of our policies. In 1967, forinstance, we instituted our basic personnel policy, commonly known by employeesthroughout the company as “PP101,” aimed at creating a diverse workforce. (For fulltext of PP101, see Appendix E, page 62.) In 1977, based on these principles, weadopted our first environmental policy setting the standard for health, safety andenvironmental considerations in our product design, manufacturing and wastedisposal. In 1997, we revised and updated our personnel policies, adding aPurchasing “Principles of Conduct and Business Ethics” manual and training. In1998, we added a Product Stewardship policy and also revised the Environmentalpolicy to further address health and safety concerns. All of these reflect ourcontinuing concern for people and the environment.

Early on, Polaroid’s 1977 Environmental policy statement on the environmentestablished lasting values and principles that have been reflected in every policydeveloped since then. Paramount among them is individual and corporateresponsibility, strict standards for environmental performance, source reduction, andrecycling and resource conservation. Later, we then transformed this policy into avision for the future.

The company’s Environmental Vision, adopted in 1994, defines the key challenge forthe 21st century. We developed this vision even before “sustainability” became thenorm. The concept was also embodied in our 1977 Environmental policy. It is:

“We strive to conduct our business in harmony with nature to preserve a healthyplanet for future generations.”

The company’s Product Stewardship policy, signed by Polaroid’s CEO anddisseminated company-wide in 1998, clearly establishes the roles and responsibilitiesof business unit managers in ensuring that Polaroid meets its environmentalcommitments in product manufacturing and product stewardship. It stresses not onlycompliance issues, but also the link between environmental concerns and moretraditional business issues such as cost and competitiveness.


We recognize the importance of 1) minimizing the environmental, health and safetyexposure and risks associated with our products, and 2) reducing the resources used inthe production and use of our products, while continuing to provide value to ourcustomers. To achieve this goal, Polaroid is committed to the following ProductStewardship code:

-Design our facilities, processes and products with minimum adverse impact onhuman health, safety and the environment-Be accountable.-Eliminate, reduce, or control hazardous materials we use.-Anticipate the hazards of our activities.-Conserve resources.-Provide employees with information and training to better do their jobs.-Update HSE policies and programs as appropriate.

With a similar ethic, the Polaroid “Supplier Principles of Conduct” begins with a noteto suppliers:

“We will conduct our business in a manner that recognizes universal standards ofhuman rights, environmental protection, safe and healthy work environments, andhigh principles of business ethics.”

The Supplier Principles cover environment and safety, work practices, compensation,“no-gift” policy, management leadership and vendor assistance.

Finally, the basic tenets of Polaroid’s “Guide to Business Conduct” are: Respect forone another, customers, suppliers, shareholders and the communities in which wework. The company treats all of its stakeholders with respect and dignity to create awork environment where individual and cultural differences are valued andharassment is not tolerated. (See Appendix, starting on page 56, for the full text ofthis and other policies.)

Health, Safety and Environmental strategy

The Health, Safety and Environmental (HSE) strategy aligns environmentalobjectives with the company’s business objectives, while integrating health, safetyand environmental protection with protection of company assets. This integration is akey aspect of improved, efficient and “sustainable” business processes.

SustainabilityPolaroid’s definition of “sustainability” continues to evolve, as our understanding ofwhat is sustainable improves with time and experience. In short, we do not want tocompromise our future generation’s ability to use resources because of our poorstewardship in protecting the environment or in the way we carry out our business. Aspreviously mentioned, we embraced this notion early on in 1977 as part of our


original statement on the environment; then again in1994, when we formally adoptedthe concept of sustainability as part of Polaroid’s Environmental Vision.

While a later, more detailed definition of sustainability will clearly include conceptssuch as conservation, renewability and reusability as well as the human elementaffected by our business, the optimum approach for balancing these factors withfinancial, market and business issues has not yet been determined. Many initiativeswithin the company today, particularly in the areas of energy conservation andimproved manufacturing yields, address some aspects of sustainability, includingacquisition of raw materials, manufacturing, distribution, and product use anddisposal.

Polaroid’s Product Stewardship council is managing Polaroid’s evolving definition ofsustainability. At the bottom of all sustainability deliberations is the concept ofensuring that the environment is not compromised for future generations and that weunderstand there are implications from every action we take.

Beyond our everyday business, Polaroid also cares about the well being of people andthe communities in which we work. The company provides competitive salaries andbenefits to its employees, and through company donations and the PolaroidFoundation, aims to improve the lives of those around us.

In addition, Polaroid has long recognized that it has a responsibility to all of itsstakeholders. In our first environmental report for reporting year 1988, for instance,our CEO stated, “ For more than 50 years, Polaroid’s corporate philosophy hasstressed responsible citizenship. That citizenship obligation, which is especiallyimportant in the communities where our employees live and work, includes a concernfor the environment...” As seen here, although we may have not talked aboutsustainability in those exact words, Polaroid employees have lived it through ouractions as part of our corporate philosophy for many years now.

Precautionary measuresIn addition to our policies, Polaroid takes certain precautionary measures to ensurewe conduct our business in the most responsible way. The company definesprecaution as “using science and experience to assess whether or not an activityshould be carried out, and to determine the appropriate safety measures to take whenperforming the activity under consideration.” Accordingly, we screen all newchemicals developed in preparation for use and agency approval by European or U.S.governments. We also established employee exposure levels that are twice asprotective as existing consensus-based standards. We will not use chemicals thatpose an exposure risk to employees during manufacture or to customers when theyuse our products. We design products to be safe for our customers’ use at all times.

Organizational structureThe vice president of Health, Safety and Environmental Affairs (HSE) is responsiblefor updating environmental policies. Furthermore, technical experts in the Corporate


HSE office advise on updating these policies. The vice president of HSE reports tothe senior vice president of Manufacturing.

We believe communication within the business organization is important forsuccessful implementation of our policies and business objectives. Accordingly,manufacturing directors and key plant managers receive regular updates onenvironmental performance. This is done through monthly reports on environmentalperformance and quarterly reports on safety performance. Updates to seniormanagement, the company’s board of directors and the board’s audit committee takeplace as appropriate, generally quarterly.

Recently, with the decentralization of manufacturing responsibilities, Polaroid begana deliberate shift of environmental management responsibilities to the business unitmanagers, who make most of the operational decisions. However, the Corporate HSEgroup continues to support HSE personnel assigned to Polaroid facilities worldwide.

Additional assistance comes from the Corporate Medical department, which managesthe health departments at the various manufacturing facilities, and the Law and PatentDivision, which provides legal advice and counsel on all HSE matters. In addition,the Office of Ethics and Corporate Compliance ensures adherence to the higheststandards of integrity throughout the corporation.

Managers are held accountable for carrying out environmental initiatives. Forinstance, specific performance standards for managers include safety andenvironmental management along with cost, quality, scheduling, inventory anddiversity. These standards govern annual pay performance reviews.

Certified Management Systems Polaroid has a number of ISO certified operations, including ISO 9000, and onemanufacturing operation certified to ISO 14001. Polaroid is a CERES signatory andprepares an annual environmental report on how it meets the CERES Principles.

Business and stakeholder membershipsPolaroid uses its business and stakeholder memberships, as seen below, to gatherinformation related to company needs and to work co-operatively with othercompanies and organisations on projects of common interest.

Associated Grant makers of Massachusetts

Associated Industries of Massachusetts

British Imaging and Photographic Association

CEFIC -- European Chemical Industry Council

CEEC – Corporate Environmental Enforcement Council

CERES -- Coalition of Environmentally Responsible Economies


Earth Share – Board member

Electronics Scotland

Environmental Federation of New England

Environmental Law Institute

European Photographic Manufacturers

Massachusetts Safety Council

Mass. INC – A think tank devoted to helping disadvantaged people

MCTA -- Massachusetts Chemical Technology Alliance

NETI - National Environmental Technology Institute – advisory committee member

NAM -- National Association of Manufacturers

National Association of Purchasing Managers -- employees have actual membership

National Photographic Manufacturers Association

NEMA -- National Electrical Manufacturers Association

External chartersPolaroid signed the Coalition of Environmentally Responsible Economies (CERES)Principles in 1994, because they were complementary with our environmental, healthand safety policy and objectives. The principles are a 10-point code of conduct thatcompanies follow to help become responsible stewards of the environment. (A listingof the principles can be found in Appendix C on page 59 of this report.) For moreinformation, you can also reach the CERES group web site at www.ceres.org.

Management systemsPolaroid has management systems and a variety of programs in place to manageperformance and ensure compliance with the numerous laws, regulations andrequirements that apply to our business. Specific operations include: Manufacturing,Finance, Human Resources, Environmental, Health and Safety and Quality.

In addition, the company conducts a large number of programs and related trainingfor specific business needs, including operational and support activities. For instance,employees receive regular training in computer systems, safety and the environment.There are numerous written Health, Safety and Environmental programs, which willsoon be available on the company’s Intranet, available to all employees. Thecompany also regularly trains product teams on product design and relatedenvironmental issues, and publishes “Product Stewardship News Notes,” apublication for employees, which covers emerging issues impacting Polaroid productsworldwide.

http://www.ceres.org/


Environmental performance is just one of many criteria used to measure overallperformance of line and business unit managers. Employees also are encouraged topay close attention to sustainable performance as well as product quality byparticipating in regularly scheduled shift meetings, team meetings and quarterlybusiness meetings that frequently cover environmental and safety issues.Additionally, employees at individual facilities also are encouraged to plan and takepart in special events, such as the Environmental Expo, river clean-ups and Earth Dayobservances.

Training programs and development of employeesTo further support the development of employees, Polaroid offers basic training ongeneral and specific business subjects, such as wastewater treatment and spillresponse. The company also encourages pursuit of advanced degrees in related fieldsby offering a generous allowance of $7,000 each year for tuition.

Historically, Polaroid has supported the educational plans of employees who pursueadvanced degrees in chemical engineering and research and development -- all skillsneeded for the continued growth of the company. For instance, many PhDs havefound a wide range of opportunities at Polaroid. Most recently, as we continue toadapt to changing business needs, the company has also encouraged the pursuit ofadvanced business and marketing degrees.

Comprehensive training has always been a priority and tool for introducing many newprograms within the company and enhancing the knowledge and skills of employees.For example, in 1996, all U.S. employees whose work affects environmentalperformance completed Environmental Awareness training. About $650 peremployee was spent on this in 2000. Annual refresher training and skills building alsoare part of keeping employees up to date with the many regulatory requirements. Asnew requirements in other areas of our business emerge, we meet the need withtraining. During 2000, we completed training of more than 1,200 employees in ourU.S. operations. This is in addition to routine regulatory training.

Beyond formalized educational programs, Polaroid also offers mentorship programs,leadership development and a management development program to buildmanagement skills needed for senior managers. A comprehensive list of trainingprograms is available to employees through the company’s Intranet site.

To further enhance the quality of life for employees, Polaroid offers a number ofalternative working arrangements including:

-Flexible Work Arrangements-Telecommuting-Job Sharing-Child Care / Elder Care-Employee Assistance Program


-Tuition Assistance-Dependent Care Reimbursement-Medical Department-Fitness Centers

Beyond the workplaceAt Polaroid, our concern for people goes well beyond the workplace. We recognizethe importance of supporting training programs for people who need it most in ourlocal Massachusetts communities. Our primary aim is to help adult literacy and buildworker skills. Much of the financial assistance we offer comes through the PolaroidFoundation, which also is a key corporate contributor to Mass. INC, a non-profitorganization dedicated to these objectives.

Measuring our progress

Tracking environmental costsPolaroid tracks certain environmental costs, such as labor costs, environmental capitalexpenditures and waste-disposal costs. Polaroid uses an enterprise resource-planningdatabase provided by SAP America to collect information from all of itsmanufacturing activities, which can be used to determine specific financial costs.This, in turn, helps the company make better-informed decisions about capitalinvestment, product development and introduction, energy and materials use, andwaste management.

Polaroid measures progress toward environmental goals in relationship to production unitswithin the company. Energy and water usage is also normalized to units of production.Production indexes are typically based on square feet of film sold.

AuditingAudits are a routine management tool for Finance, Quality, and HSE. There is an HSEcorporate audit committee which commissions independent, third party HSE audits ofPolaroid’s U.S. facilities and ensures the quality, consistency and effectiveness of internalself-audits, which are used at all our facilities. In 2000, all HSE audits conducted were ledand staffed by outside independent individuals or organizations. All of the audit teamsincluded at least one Polaroid Corporate HSE professional and one divisional HSErepresentative.

Detailed audit results serve as a guide for corrective actions and are not shared beyond themanagers who need to know. Managers of audited facilities and divisions receive immediatefeedback, and they are required to respond with an appropriate action plan for correctingdeficiencies. The HSE corporate audit committee monitors implementation of these plans.

Company-wide results are discussed at periodic Shared Learnings meetings and publishedwith audit status reports, issued to HSE professionals, plant managers, division directors and


appropriate company officers. Final audit reports are issued to the audited division’s seniormanagement, including the plant manager, division director and others as appropriate.

During 2000, HSE audits were performed at all major U.S. manufacturing operationsto assess performance related to particular health, safety and environmental issues andvarious HSE program areas, such as regulatory compliance, equipment safety,hazardous waste and safety management systems. In recent years, the audit programhas generally focused on compliance with U.S. government regulations.

HSE Audit program elements

Environmental Health and SafetyCompliance X Compliance XManagement Systems X Management Systems XSpill Prevention X Emergency Planning XWater Quality X Transportation Safety XAir Quality X Air Quality- indoorSolid/Hazardous Waste X Process Safety Management XStorage Tanks X Materials/Equipment Safety XChemical Releases X Industrial Health/Hygiene XSite Remediation Occupational MedicineChemicalRegistration/Certification

X Warehouse Safety X

Personnel Safety XPersonal Protective Equipment X

Approaches to improving management qualityPolaroid uses management consultants to provide insight and new approaches formanaging and improving the way we do business. Additionally, we participate withnational and local associations on innovative methods for management ofenvironmental issues and product design. Polaroid also participates in CERES andattends its annual meeting to learn more about sustainable business practices.

The company measures its progress in the HSE area through an “environmental reportcard,” lost-time and injury reporting and audit programs. (Also, see page 12 for moreinformation.)

In addition, many of Polaroid’s products and processes meet the highest internationalstandards. At our manufacturing facility in The Netherlands, for instance, thecompany has an environmental management system certified to ISO 14001, and twoother plants are preparing for ISO 14000 certifications. ISO 9000 certification is


common to most plants. During 2000, Polaroid maintained 12 certified ISO 9000management systems, five MQA certificates (Marketing Quality Assessment 9001Plus Marketing and Sales Requirements), and one ISO14001 management system.Currently, program managers for ISO 9000 and ISO 14000 are working together tomerge these programs where practical.

Product Stewardship During 2000, the company formalized its management of Product Stewardship.Recognizing our responsibility to the environment and a need for it to be integratedwithin the business, we created a team of internal experts from all business areas tocarry out the task at hand. This was done with the help of the marketing organizationsince Polaroid products and associated packaging are subject to an increasing array oflegal restrictions and environmental regulations worldwide. These regulationsinclude design considerations, material restrictions, labelling requirements,mandatory take-back, eco tax payments, and extensive reporting and submittalrequirements.

If these issues are not managed appropriately, they will impact revenues and profitmargins, cause delays in our new product introductions, generate adverse customerreaction, and adversely impact the environment. Garnering the support of employeesin all aspects of the product delivery process helps us become efficient andsustainable.

Supplier relationsPolaroid’s Purchasing organization has established procedures for the selection ofvendors regardless of the service or goods being purchased. In addition to matters ofcost and availability, environmental, health and safety issues are reviewed to ensurethat the supplier is meeting its obligations. A Purchasing manager works inPolaroid’s Corporate HSE to stay current with issues and regulations that may affecthow Purchasing conducts its business.

Polaroid uses criteria established in the company’s “Global Sourcing Principles” forevaluating suppliers who are asked to answer labor, health, safety and environmentalquestions such as those listed in the Supplier Criteria table on page 44.

Suppliers’ commitments to specific environmental improvements are incorporatedinto their contracts with Polaroid. The company takes a three-tiered approach toevaluating suppliers by gathering information independently, asking direct questionsof the supplier and visiting selected suppliers, depending on their logisticalsignificance and the nature of their operations. Hazardous waste disposal vendorsautomatically receive site visits as part of the evaluation process.


Vendor success stories

Polaroid’s supplier relations program has met with much success. Here are someexamples:

-Polaroid entered into a shared-savings relationship with a vendor to reduce solidwaste management and recycling costs. At minimal cost to Polaroid, the vendorbecame a close partner with Polaroid, looking for solid waste elimination or cost-savings opportunities. The vendor also heads up a Solid Waste committee tappinginto the expertise that exists within the company.

-PV2K (Polaroid Value 2000) is a Purchasing program to consolidate vendors whileimproving service and value. As part of this program, Polaroid worked closely withkey vendors to enhance value and realize savings for the company.

-Polaroid works with suppliers to share technical information on environmentalissues, develop less-wasteful packaging methods for purchased materials, and createprograms to recycle and reuse various types of vendor packaging and polyester sheetmaterial Polaroid uses in the manufacture of it products. Some Polaroid suppliershave instituted “life-cycle” programs under which the supplier takes back surplusmaterials for reuse or recycling, is part of a transport reuse program, or recoversreusable materials from manufacturing byproducts.

-Polaroid is pleased that one of the vendors it uses for management of regulatedchemical wastes won an award from the EI Digest in 2000 for its outstandingperformance in regulatory compliance.

-Polaroid reduced energy consumption as a result of contracting with an energymanagement contractor.

Plant closingsPolaroid has closed some manufacturing plants due to economic necessity. Thecompany has moved some manufacturing to lower cost locations, but more typicallyhas consolidated manufacturing locations for greater operational efficiency. Polaroidconsolidated three coating operations into two and closed a building after sale of thedivision.

In these situations, employees are offered relocation when positions are available orseverance packages commensurate with their seniority in the company. Facilityclosure is subject to strict environmental standards and careful review to ensure thatthe company does not incur potential liability because problems were left behind.


Stakeholder relationshipsPolaroid works diligently with its shareholders to ensure that we understand theirneeds and concerns and that, in turn, the company is profitable and successful in howwe conduct our business and manufacture our products.

Shareholder and stakeholder feedback and involvement is vitally important to thecompany, especially in formulating our action plans. We gather input through avariety of channels, including our marketing organization, where employees workwith specific customers or focus groups on new product development and ideas;participation in numerous groups and government agencies to learn their desires andcommunicate what we do; regular meetings with industry analysts, stakeholders andshareholders; annual community meetings at our various plants; customer service;extensive use of our web site, and finally, through our community involvement withthe Polaroid Foundation.

These actions are a regular part of our business activity and each has a schedule of itsown. Polaroid uses these events to learn about the concerns and interests of our keycustomer groups, and what action we need to take to improve and meet their needs.

Another important avenue for feedback is Thompson Financial, which each year doesan annual independent analysis of our shareholders as part of a perception study. Thecompany chose Thompson Financial for its experience, expertise and independence.

In areas specific to the environment, Polaroid participates in a variety ofcommunication forums with the community, government, industry, environmentalagencies and non-governmental organizations (NGO) to gather feedback. While notsurveyed in a formal way, the Corporate HSE office uses the findings from thesemeetings in formulating their strategic plans.

To ensure our voice is being heard, Polaroid also participates in the local regulatoryprocess to provide a business perspective on new laws or regulations being formed.We have long been a working partner with various environmental organizations and,most recently helped create a coalition of business, institutions, agencies and NGOsto improve water quality in a local river of major importance. We are also workingwith other companies as well as the Massachusetts secretary of Environmental Affairsto restore important wetlands. See www.cleancharles.org for more on the “CharlesRiver Cleanup,” as well as http://www.state.ma.us/envir/Wetlandnews.htm for more onwetlands restoration.

In summary, Polaroid recognizes the importance of the community in virtually everydecision we make. On a regular basis, we make every effort to communicate

http://www.cleancharles.org/

http://www.state.ma.us/envir/Wetlandnews.htm


candidly about environmental issues with neighbors, activists, government agencies,public safety officials, educational and health-care institutions, customers,shareholders and business leaders alike.

Communication channels and community involvementThe company keeps stakeholders informed in many ways. For instance, we publishedour first report on the environment in 1989 (for reporting year 1988), and made itavailable to community leaders, interested parties and the environmental community.We also conduct community meetings at least annually at major facilities, wheremanagers answer questions and report on waste reduction and other environmentalissues. Polaroid also has published customized editions of Resource, a communitynewsletter on environmental issues of concern to Polaroid and its neighbors, at manyof the major manufacturing sites in Massachusetts.

As a responsible corporate citizen, we respond to any community, group or individualraising concerns—environmental or otherwise—about the company’s operations.Company representatives also maintain formal contact with many community groups,selected on the basis of their interest in and relevance to environmental issuesaffecting Polaroid and the community.

We remained connected to the business world on environmental issues in manyadditional ways. For instance, company representatives make presentations onenvironmental programs and practices to professional societies, area Chambers ofCommerce, trade associations, educational institutions, government agencies andother leading companies. And, as an endorser of the CERES Principles and afounding member of the Public Environmental Reporting Initiative, Polaroid workswith other companies to encourage public reporting about progress towardenvironmental goals.

Additionally, a large number of employees volunteer as members of environmentalassociations, committees and advisory boards at local, state and national levels.Examples of these activities are highlighted in various sections of this report.

Polaroid has sponsored several community-oriented environmental activitiesincluding:

-In Waltham, Massachusetts, company representatives participated with the LocalEmergency Planning Committee (LEPC) to develop a citywide emergency responsecapability. Polaroid Health, Safety and Environmental engineers shared theirexpertise with LEPC and Fire Department personnel. Polaroid also providedhardware and software in support of this planning and preparedness work.


-The company is a frequent sponsor of community events and organizations. Theserange from regional participation with the Environmental Federation of New Englandto more local events, such as Earth Day activities with the City of Waltham, theCharles River Watershed Association, Clean Charles Coalition, New Bedford FireDepartment Fire Prevention activities and Children’s Lead Poisoning Screening.

In addition, several Polaroid facilities sponsor environmental internships for studentswho wish to learn new skills and gain experience for their environmental careers.These range from summer college internships, to full-year internships to teacherinternships.

Other outside eventsIn 2000, Polaroid was involved with several outside groups at the state and local levelin various environmental programs including:

-Polaroid worked with a group of industries and business in a public-privatepartnership with the Massachusetts Secretary of Environmental Affairs to matchfunds on wetlands restoration projects in coastal Massachusetts.

-The company joined the Climate Savers Program by signing an agreement with theWorld Wildlife Fund’s (WWF) to reduce carbon dioxide emissions at least 20 percentby 2005, compared to 1994 levels, and 25 percent by 2010.

-Polaroid’s manufacturing plant in Queretaro, Mexico received a “Clean Industries”certificate from the local environmental agency. This is a certificate recognizing theplant for successfully passing an independent audit of their environmental program.

-Polaroid’s 1265 Main St. facility in Waltham, Mass. sponsored Earth Day activities.

-Employees volunteered to help clean up the Charles River in Massachusetts.

-Polaroid hosted engineering students from Worcester Polytechnic Institute to seefirst hand production equipment, which reduced pollution while improvingproductivity. They also looked at pollution abatement equipment.

-The company invited graduate students from the Harvard School of Public Healthon-site to learn about monitoring occupational environments.

-Polaroid hosted meetings of the Toxics Use Reduction Planners Association, theCambridge Watershed Protection Association and the Clean Charles Coalition.

-The company continued to conduct its regular, annual community meetings.


Challenges in community participation and accountabilityA continuing challenge in the area of community participation is to educatelegislators, regulating agencies and the public that life is not without risks and it ishow we manage those risks that is important. Society has created a complexenvironmental regulatory system that looks at one media at a time and, while wellintended, squanders resources to ensure compliance. We believe that compliance, attimes, is mistakenly thought to be synonymous with environmental performance.Resources that would be better spent on environmental performance improvements goto support a command and control regulatory system that discourages continuousimprovement.

Additional challenges we face arise in locations, such as in Waltham, Mass., whereresidential areas have developed or expanded in close proximity to major Polaroidsites. As a result, some community residents today seek more detailed informationthan ever before about the environmental aspects of our business activities. On aregular basis, the company responds to these requests, providing information andputting that information into context for non-technical people. This represents acommitment of time and talent as answers usually lead to new questions with theneed to provide additional information. This effort improves overall communityknowledge and trust over time.

Within the U.S., the company does not currently operate in communities heavilypopulated by the most vulnerable minority groups. Nevertheless, in 1994, weincluded environmental justice issues in our criteria for evaluating hazardous wastedisposal facilities, some of which operate in these areas, to ensure they do notadversely affect at-risk population groups.

Outside of the U. S., Polaroid takes all steps necessary to minimize the communityimpact of its operations. In Queretaro, Mexico, for example, the companyconstructed the area’s first private wastewater treatment plant to reduce the impact onmunicipal facilities. In Shanghai, China, the facility operated by a Polaroid jointventure relocated to a more suitable industrial park from a densely populatedresidential neighborhood.


Information available to local communities

Provide Willing toProvide

No

Chemical release data XWorst case accidentScenario

X*

Internal safety audits XInternal compliance audits XMaterial transportation risks XProcess hazards analyses XPollution prevention plans XOther information gatheredfor the CERES report

X

* Definition of “worst case” may vary depending on the purpose of the inquiry.

Contingency planningA new site-wide hazardous materials response plan was prepared in 1998 for theWaltham 1265 Main Street site. It follows the format of “One Plan,” designed tosatisfy the requirements of multiple regulatory agencies in an efficient way.Information in this plan has been translated into a computer program called “PlantSafe,” and is readily available to Incident Commanders for use during an incident.

Polaroid’s broad definition of emergency preparedness includes contingency planningfor chemical emergencies, fire and natural disasters. Following guidelines in theCorporate Safety Instructions manual, each division develops emergency plans thatare then integrated with overall site and community plans.

A designated emergency planner coordinates the plans for each division. The plannertypically works with a team drawn from process engineering, security, the Medicaldepartment, maintenance and Human Resources as well as manufacturing. Divisionsupdate their contingency plans annually, and site drills help to evaluate efficiency,effectiveness and opportunities for improvement. The plans and subsequent updatesare also provided to local public safety and health officials.

Training exercisesTo keep informed and ready to quickly respond to issues that may arise, manyPolaroid sites conduct emergency response practice drills in conjunction withmunicipal and regional public safety agencies. The exercises strengthencommunication between Polaroid responders and their counterparts in the publicsector, help public officials become familiar with company operations and providevaluable learning experiences.


To ensure good communication in case of an emergency, we provide Material SafetyData Sheet (MSDS) information and site contingency plans for emergency responseto public safety officials in the communities where Polaroid has manufacturing sites.

Additionally, Polaroid employees represent the company on Local EmergencyPlanning Committees (LEPC), made up of residents and local officials, at the varioussites where Polaroid is located. In Waltham, the company went a step further tosupply resources in support of CAMEOTM, a computerized safety information systemcontaining information on potential chemical hazards at various community sites.Information in the database is used by the LEPC and the fire department foremergency planning. In 1999, Polaroid also helped the Waltham LEPC revise andreissue a comprehensive emergency response manual to address citywideemergencies, and assisted with the creation of a corresponding web site.

Through regular reports, plant tours, informational meetings and special publications,Polaroid site managers keep community officials and neighbors informed about issuesrelated to public health and safety. LEPC plans are a matter of public record, andMaterial Safety Data Sheets for all chemicals used at Polaroid are made available tolocal emergency responders.


Environmental performance / GRI section 6

Energy Polaroid has been in the business of conserving energy for more than 20 years. Infact, it is a cornerstone of our original Environmental Policy written in 1977. Inkeeping with our long-held beliefs, the company entered into an energy agreement in2000 with ENRON, an energy services provider, for the purpose of reducing energyby a minimum of 10 percent in 10 years.

The charts below show 2000 emissions and energy consumption data. Specific datain kWhrs is listed. Total numbers converted to Gigajoules also are included.

Trends in energy use, by source

Electricity inkWhrs

Base year1988

1999 2000

Purchased 273.5 x 106 236.0 x 106 218.8 x 106

Self-generated 0 0 0Co-generated 0 0 3.1x 106

TotalConsumption

273.5 x 106 236.0 x 106 221.9 x 106

NormalizedTotalConsumption

1.57kWhrs/unit

1.50kWhrs/unit

1.52kWhrs/unit

BTU use in Polaroid power plants

Fuel in BTUs Base year1988

1999 2000

Fuel Oil 9.5 x 1011 9.7 x 1011 8.9 x 1011

Coal 0 0 0Natural Gas 4 x 1011 4.5 x 1011 4.9 x 1011

TotalConsumption

13.5 x 1011 14.2 x 1011 13.8 x 1011

NormalizedTotalConsumption

7,758 BTUs/unit

8,997 BTUs/unit

9,454 BTUs/unit


How much energy has this program conserved?

Time period Absolute NormalizedElectricity 1988 - 2000 100.0x106

kWhrs0.106 kWhrs/unit

Fuels 1988 - 2000 - 13.8 x1011

BTUs- 393.4BTUs/unit

Within our organization, Polaroid has taken many initiatives toward energy efficiency.For instance, the company has contracted an energy management service provider tomanage its energy program with the goal of reduced energy consumption and costsavings. Typical energy conservation programs are re-lamping, high efficiency electricmotors, co-generation and boiler upgrades.

As part of Polaroid’s operating practice, the use of natural gas is preferred over fuel oilwhen market conditions are favorable. Polaroid uses environmental emission factorsprovided by our energy providers for determining emissions from our use of electricity,natural gas or fuel oil.

In the area of distribution, Polaroid maintains a small fleet of trucks for materialmovement among Massachusetts manufacturing plants. With less than a dozen tractorsand more than double that in box trailers, these vehicles efficiently move work inprogress and manufactured goods as needed. In 2000, we used 77,000 gallons of fuel forthis purpose. In addition to product movement, these trucks also consolidate recyclablematerials. (Also, see “Transport of goods,” page 43.)

Total energy use in Gigajoules

Energy kWhrs 2000 221.9x 106 kWhrs 798,840 Gigajoules

1999 236.2 850,320

1998 252.1 907,560

Fuel 2000 13.8 x 1011 BTUs 1,455,977 Gigajoules 1999 14,2 1,498,179

1998 14.5 1,519,280


Total Year Gigajoules indexed to square meters film

2000 2,254,817 0.166

1999 2,348,499 0.161

1998 2,426,840 0.180

MaterialsPolaroid manufactures and sells thousands of products, but does not track gross materialuse. Instead, we apply our policy objectives to the design and manufacture of theseproducts to ensure the highest quality.

We do, however, track regulated chemical wastes, non-regulated chemicals and solidwastes and apply the same reduction/recycling philosophy to these materials worldwide.

The company’s Environmental and Product Stewardship policies contain statementsregarding assessment and measurement of chemicals and other raw materials used withthe directive to “conservation, recovery and recycling whenever possible.”

Policy and practice objectives summary

Yes No NotApplicable

Reduced consumption of virgin materials throughproduct or process redesign

X

Procurement of goods with recycled content XProcurement of reused goods XRecycling of solid waste XRecycling of hazardous waste and toxic materials XWater conservation XEnergy conservation XSource reduction or risk reduction of toxicMaterials

X

Habitat conservation X


Packaging materials In packaging our products, Polaroid uses about 2,722 tonnes of post-consumer paperfiber. Not all packages have recycled content because of specific contaminationproblems with recycled paper fiber. Some innovative package designs have achievedsubstantial recycled content by layering virgin fiber over primarily post-consumerrecycled content. This allows us to use greater than 60 percent recycled content in somepackages, but still have virgin fiber for print and package durability reasons.

Use of hazardous chemicals/materialsPolaroid began environmental reporting to publicly track its progress through a ToxicsUse and Waste Reduction program introduced 13 years ago. Through this program, thecompany has made a number of significant changes and reductions in its chemical useand we have been recognized for this success. In 1999, the Commonwealth ofMassachusetts presented Polaroid’s manufacturing site in Waltham with the esteemed“Governor’s Award for Toxics Use Reduction” for exemplary efforts in this area.

For this report, the U.S. Toxics Release Inventory (TRI) numbers are being used forcomparison. They represent manufacturing activities that generate the major portion ofPolaroid’s chemical wastes. These numbers represent 80 to 85 percent of Polaroid’schemical use worldwide, and can be used for historic comparison with previous years.The U.S. TRI numbers showed a slight increase in total numbers reported, correspondingto increased manufacturing Polaroid experienced during 2000.

TRI totals (Also, see Appendix F, page 65, for a complete listing of TRI data.) 2000 2,185 tonnes

1999 2,162 tonnes

In reporting releases as seen above, Polaroid normalizes TRI data according to guidelinesprovided by the U.S. Environmental Protection Agency. For each chemical reported, thecompany provides either a ratio of reporting-year production to prior-year production oran activity index, based on the variable that most influences the quantity of the reportedchemical that is recycled, used for energy recovery, treated or sent for disposal. Forcomplex sites, where the same chemical is used in more than one production process, theproduction ratio is determined using a weighted average, based on the respectivecontribution of each process to the totals for that chemical.

Other chemical-use data from the rest of the worldwide operations is approximately 250tonnes. The company only uses commercially available materials or proprietary coatingsin its manufacturing processes. No naturally occurring plants or animals are used inPolaroid’s manufacturing processes


Total manufacturing water use2000 769,829 cubic meters

Polaroid’s U.S. manufacturing activities use about 89 percent of the water. Thecompany does not significantly affect local water resources with its limited use ofwater. Polaroid is one of many users of municipal water supplies, which generallycome from reservoirs or rivers. One exception is Mexico where the company treatswastewater generated by our manufacturing operation to irrigation standards and usesthe water for grounds keeping. For many years, Polaroid has focused its attention onwater conservation efforts, with major reductions compared to a decade ago.

Emissions, effluents and waste (tonnes or kilograms)

Greenhouse gas emissions

2000 465 million lbs. or 219,920 tonnes



Climate changePolaroid proactively supports efforts to protect the atmosphere from harmfulcontaminants. In 1996, the company joined the Climate Wise program sponsored bythe U.S. EPA and the U.S. Department of Energy. This voluntary program promotescost-effective measures to enhance energy efficiency and pollution prevention and toreduce greenhouse gas emissions. As a Climate Wise partner, Polaroid has developeda five-year plan for reducing energy use by three-to-five percent by 2001.

In 2000, Polaroid became a member of the World Wildlife Federation Climate Saversprogram. In doing so, we agreed to reduce carbon dioxide levels by 20 percent by2005, and 25 percent by 2010, as compared to1994.

For more information, see the World Wildlife Federation’s Climate SaversGreenhouse Gas Reduction program on-line at www.worldwildlife.org/climate.

Polaroid also is reducing greenhouse gases by supporting site-based energyconservation and power-plant efficiency programs with a one percent, per yearreduction goal. This is part of an energy services contract the company now has in



place to bring the right expertise and resources to bear on our energy conservationprogram.

On-site worldwide emissions of carbon dioxide, methane and nitrogen oxides resultalmost entirely from the combustion of fossil fuels in power plants that heat buildingsand produce steam for our U.S. manufacturing processes. Much of the electricitypurchased by Polaroid comes from the combustion of fossil fuels at off-site electricalgenerating facilities. Estimates of emissions for these three greenhouse gases arederived from records of energy consumption, which Polaroid has kept for many years.The estimates reflect emissions related to commercially purchased electricity and on-site emissions.

Gases*Base Year1988(106 pounds)

1998Emissions(106 pounds)

1999Emissions(106

pounds)

2000Emissions(106

pounds)Total Total Total Total

CarbonDioxide

539.00 503.14 476.35 462.59

Methane 0.5 0.52 .53 0.56NitrogenOxides

1.8 1.75 1.69 1.68

Total GHGases

541.30 505.41 478.57 464.83

Normalized 3.11lb./unit

3.48 3.29 3.20

* Polaroid power plants and purchased electricity which represent 80 to 85 percentof the company’s total energy use.

Ozone-depleting chemicalsPolaroid has phased out the use and emission of Class I ozone-depleting chemicals(ODC) listed in the Montreal Protocol from manufacturing operations worldwide. Agradual replacement program for chillers and air conditioning units containing theseODCs is under way. As individual units reach the end of their useful life, they will bereplaced with non-class I ODC refrigerants.

All Polaroid HVAC technicians are trained to minimize or eliminate ODC emissionsfrom the equipment they service. In the U. S., refrigerant removed from systemsduring servicing is sent to a recovery company, where it is brought back tospecification, then returned to Polaroid for reuse. All refrigerant used is for keepingexisting HVAC units in proper working order.


Product descriptions and purchase order specifications furnished to suppliers specifythat Polaroid does not purchase products containing or manufactured with listedchlorofluorocarbons. Suppliers certify that they adhere to this restriction.

Use and emission of ozone-depleting chemicalsListed ozone depleters Use in pounds Emissions*

Base year 1988 125,949 83,0851998 1,145 1,1451999 4,473 4,4732000 2,336 2,336*Releases to air (does not include ozone-depleting chemicals sent to recycling or totreatment, storage or disposal facilities.)

Total wastePolaroid’s waste figures are separated into two categories -- solid waste and regulatedchemical waste. Both of these categories include materials which were recycled.These numbers are for Polaroid’s worldwide manufacturing operations.

The numbers here show total solid waste not regulated as hazardous or special waste,including material that was recycled such as paper, steel and metal:

2000 8,163 tonnes42% was disposed to waste to energy (~22%) or landfill (~20%), and 58% wasrecycled.

1999 9,705 tonnes55% was disposed to waste to energy (29%) or landfill (26%), and 45% recycled.

1998 10,143 tonnes57% disposed to waste to energy (27%) or landfill (28%), and 43% recycled.

Note: Site-specific programs at many facilities are designed to encourage recyclingof solid waste, and there is a corporate-wide goal for solid waste reduction. Polaroidcontinues to increase the percent of solid waste that is recycled each year whilereducing the amount of waste generated.

Regulated chemical wastes

At Polaroid, regulated chemical wastes have two components -- numbers related tochemical emissions and transfers as established by U.S. EPA TRI, and the numbersfor the amounts of regulated chemical wastes disposed. (Also, see Appendix F onpage 65, for a complete listing of TRI data.)


U.S. Toxics Release Inventory (TRI) data1998 2,366 tonnes

1999 2,162 tonnes

2000 2185 tonnes

Waste returned to process or marketWithin Polaroid’s chemical manufacturing operations, the company has designed andscheduled certain processes to maximize in process recycling and reprocessing ofsolvents for economical, environmental and production quality reasons. Althoughchemical production is a small part of Polaroid’s overall business, the company doesrecycle internally some of these chemicals and, in doing so, has significantly reducedits generation of chemical waste. About 30 percent of Polaroid’s U.S. TRI volume isrecycled on- or off-site.

Regulated chemical wasteThe following figures are based on definitions of hazardous waste set by the U.S.Resource Conservation and Recovery Act and the countries in which Polaroid hasmanufacturing plants.

Year United States Outside United StatesTotal lbs. Normalized Total lbs. Normalized

Base N/A N/A N/A** N/A1997 8,460,000 N/A N/A N/A1998 N/A N/A N/A N/A1999 6,470,000 N/A N/A N/A2000 N/A* N/A 767,461 N/A

* Polaroid does not set specific targets solely for the reduction of RCRA wastes.**RCRA regulations do not apply outside of the U.S., based country definitions.

Management Type in 1999 for US RCRAWaste (next reporting year is 2001)

On-site %

Off-site %

Recycled 13 13Incinerated 17 30Treated 3 4Land filled 0 2Deep well injected 0 0Converted to salable product 0 0Blended as fuels 0 18


On a related note, Corporate Environmental Purchasing, in conjunction with the HSEoffice, monitors treatment and disposal vendors who receive Polaroid’s hazardousand non-hazardous waste in the U. S. (Also, see “Suppliers,” page 44.)

Spills and releasesPolaroid monitors unexpected environmental releases from its facilities, such asreleases to the air and sewer and spills into the ground. When an unexpected releaseoccurs, the company takes immediate action to remedy the problem, correct the causeand prevent a recurrence. There were no releases in 2000.

Oil and chemical spills that occur at Polaroid sites worldwide are reported toregulatory authorities in accordance with the requirements of local, state and nationallaws and permits. All un-permitted releases to the sewer are reported internally,regardless of the amount. For releases to air or ground, Polaroid uses the definitionsof “reportable quantities” specified in Mass. Contingency Plan regulations.

Spills and accidental releases

Year Oil Spills Chemical Spills Non-routineAir Emissions

Number Volume(ingallons)

Number Volume(ingallons)

Number Volume(inpounds)

1998 1 150 1 200* 1 1071999 0 0 1 150 0 02000 0 0 0 0 0 0

*This was a release of process wastewater.

Emissions to air -- key air pollutants

SO2 NOx VOC PM NH3 MeCl2

Total tonnes20001999

282319

230217

134129

4954

0.9na

0.9na

*Goals to reduce these emissions by the year 2001 are incorporated in operatingpermits issued by various regulatory agencies for the company’s operations atWaltham and New Bedford, Mass. These two sites produce about 80 percent of suchemissions within the company. Na = not available


Discharges to waterWastewater from Polaroid manufacturing sites is discharged by permit to municipalsewer systems. Major wastewater generating sites are in the U.S. and discharge tomunicipal treatment plants, which in turn, discharge to the ocean. Other sitesdischarge to municipal treatment plants which discharge to rivers.

Polaroid manufacturing sites typically have wastewater pre-treatment plants,discharge permits and monitor their wastewater to ensure compliance with applicablelocal limits. At the Polaroid plant in Queretaro, Mexico, wastewater is treated toirrigation standards and used for grounds keeping in place of potable water. Ourefforts there have been exemplary. This site was awarded a “Clean Industry”certificate by local environmental authorities after passing an independent inspectionof the site’s environmental program.

Compliance Using both local and U.S. standards, Polaroid facilities have operated withinestablished regulations except as noted in the table below. The listed excursions oflocal permit limits or regulatory requirements did not result in any fines.

Compliance record 1998 1999 2000Excursions* 23 4 9Incidents* 16 2 0Total 39 6 9

*Excursions are events where permit limits are exceeded; incidents are spills,releases or a violation of a requirement that was not a numeric limit.

Transport of goods Polaroid runs a small fleet of 11 heavy-duty tractor-trailers in Massachusetts toprovide timely and safe transport of production materials among local manufacturingplants. The numbers for fleet mileage and gallons of fuel used is listed below. Theseare expected to continue to decline as the company consolidates manufacturing spacein Massachusetts. There are no other fleet operations

The company uses commercial carriers to transport finished goods to customersbecause it is more cost effective and efficient.

Mileage and fuel data

Miles Gallons of fuel1999 470,000 85,000

2000 427,000 77,000


SuppliersPolaroid’s Purchasing department has developed a comprehensive “Supplier Principles ofConduct,” which states that the company will have business relationships with only thosesuppliers which meet high health, safety, environmental, social, ethical and legalstandards of performance. In that regard, the company requires them to answer certainlabor, health, safety and environmental questions such as those listed below. Theircommitment to the Supplier Principles is incorporated into their contracts with Polaroid.(Also see “Supplier Relations,” page 25.)

Supplier criteria

Area covered Yes/No/Not Applicable

Comments

Necessary environmental permits YesPhysical evaluation of facility Yes All suppliers are reviewed by a

survey; site visits occur for“high risk” suppliers, such aschemical manufacturers.

Cooperative development ofenvironmentally preferable materials,products and processes

Yes On a case-by-case basis, Polaroidworks with some suppliers tobalanceenvironmental responsibility withquality and cost issues.

Materials/energy efficiency NoUse of chemicals in manufacturing Yes Among other areas, vendors are

specifically asked about their useof ozone-depleting chemicals.

Chemicals contained in product YesProduct packaging YesGeneration and disposal of waste YesCompliance YesEncouraging use of environmentallypreferable materials in suppliers’processes and products

Yes Processes are reviewed to ensureno ODC* use. This reviewincludes consideration ofpackaging that is recycled and/orrecyclable.

Sharing company knowledge onenvironmentally preferable processes withsuppliers

No

Child Labor Yes Would disqualify vendor

Forced Labor Yes Would disqualify vendor* Ozone Depleting Chemical


The company takes a three-tiered approach to evaluating suppliers by gatheringinformation independently, asking direct questions of the supplier and visitingselected suppliers, depending on their logistical significance and the nature of theiroperations. Hazardous waste disposal vendors automatically receive site visits as partof the evaluation process. The company does not visit disposal vendors that service itssuppliers.

Purchasing has established these procedures for the selection of vendors regardless ofthe service or goods being purchased. In addition to matters of cost and availability,they review all environmental, health and safety issues to ensure that the supplier ismeeting its obligations. A purchasing manager works in the corporate office to keepup-to-date on issues and regulations as they affect their business.

Polaroid does not track its supplier’s compliance directly. Vendors with seriouscompliance problems are disqualified in the pre-qualification process. Vendorscertify themselves as part of their qualification process and purchasing managers orproduct engineers perform plant walk-throughs to determine if the certification isvalid. Later, they continue these informal inspections to determine if the certificationis being maintained.

Adherence to the Supplier Principles of Conduct is just one step in the qualificationprocess. Polaroid employees also conduct routine on-site visits and inspections ofvendors. To date, the company has not observed any violation of the SupplierPrinciples of Conduct such as environmental health, safety violations, and child orforced labour.

A Corporate Environmental Purchasing manager, in conjunction with the corporateHSE office, monitors treatment and disposal vendors who receive Polaroid’shazardous and non-hazardous waste in the U. S. The company maintains a list ofapproved waste-service suppliers, periodically visits existing suppliers to auditenvironmental practices, checks compliance histories and environmentalperformance. Any new waste-service vendors are reviewed, inspected and must meetestablished criteria before they are put on the approved list. Prior to a site visit by aPolaroid manager, the vendor completes a questionnaire, a Dun & Bradstreetfinancial review is conducted, and an informal inquiry to the local environmentalenforcement agency may be made.

Environmental issues associated with use of products and servicesPolaroid designs its products to have the least possible impact on the environment.Instant film development, for instance, is self-contained. Residues have beendesigned to have virtually no toxicity and to be recyclable when facilities areavailable. Some products include a special battery that was one of the first in theworld to be made mercury-free in 1988. Silver halide emulsions are stable and do notleach silver, plastics, paper packaging and metals can all be recycled, and mayalready have recycled content.


Also, Polaroid considers energy conservation in much of its product and processdesign efforts. For example, the company identified a sheet coating process forwhich equipment modifications lead to improved eco-efficiency. As a partner in theU.S. EPA’s Climate Wise program, Polaroid submitted a five-year action plan in1997 that describes specific energy reduction and pollution-prevention initiatives.Polaroid is reducing greenhouse gases by supporting site-based energy conservationand power plant efficiency that are a major part of a long-term energy servicescontract has entered into for its U.S. operations. The company also signed on to theWorld Wildlife Federation’s Climate Savers program for carbon dioxide emissionsreductions.

Product safety and stewardshipPolaroid has four programs to prevent or minimize the potentially adverse impact onthe environment from its finished products and services, including productstewardship, take back, and lifecycle management. These are described below.

-A Product Safety manager works proactively to avoid mechanical and ergonomicproblems in the design phase of a product.

-A Product Safety manager for chemical aspects of the products also worksproactively to avoid chemical use and exposure issues in the design phase.

-Customer service hotlines are available for extended hours and act as a centralrepository of issues. Critical issues can be communicated to the Product Safetymanagers at any time, as well as Polaroid’s Medical department should medicaladvice be needed.

-The Product Stewardship council, with members from a wide range of Polaroidbusiness disciplines, brings collective expertise on design, production and end of lifeissues to ensure the best design choices are made.

Corporate land use/biodiversityPolaroid manufacturing facilities are located in industrial zoned areas in the countriesin which it manufactures. These industrial locations have been landscaped or left asnatural as possible for a commercial location. Trees and foliage are encouraged.These industrial zoned areas do not have protected habitats. However, Polaroidleaves sections of its suburban sites undisturbed to encourage local species of plantsand animals to make use of the space.

Polaroid is a long-time, active supporter of watershed-protection initiatives, includingthe Neponset River Watershed Association, the Charles River Watershed Association,the Clean Charles Coalition and the Corporate Wetlands Restoration Project.Polaroid facilities operate within these watersheds in Massachusetts. The companysupports these organizations with financial contributions, participation in publiceducational events, voluntary employee involvement and expertise.


In the rare instances where contamination has been discovered on Polaroid property,the damage has been confined to company property, and full remediation is eithercomplete or in process. In several instances, the damage was not due to Polaroidoperations, but resulted from activities that took place prior to Polaroid’s ownership.

Economic performance - 2000

ProfitNet earnings: $37.7 million

Earnings before interest and tax (EBIT)

(net sales minus expenses, except interest

expense and income tax): $143.2 million

Gross margin (net sales minus cost ofgoods and services sold): $799.7 million

Cash dividends per common share 60 cents

Investment in human capital

Polaroid recognizes that its employees are its greatest asset and invests in theenhancement of their skills through training programs targeted toward business needs.This includes allowances of up to $7,000 for college and advanced degree coursework, and in 2000, the investment of about $650 per employee for business specifictraining.

Research and development $83.4 million

Wages and Benefits $498,000,000*

(*This is the total wages and benefits Polaroid paid its employees.)

Taxes

Taxes paid to all taxing authorities. $20.2 million

Community developmentThe Polaroid Foundation helps those who are disadvantaged. The Foundation has apermanent funding source created by Polaroid in 1997 through an endowment of $19million set up with the Boston Foundation. The money came from the proceeds froma real estate sale and was set aside for the Foundation to ensure Polaroid’s long-termcommitment to community service. An executive director and a board made up ofemployees manage the Foundation. Committees of employees approve the


disbursement of funds. The Foundation represents Polaroid’s long-term commitmentto the community, but is not our only vehicle for supporting community programs.Polaroid’s business divisions donated funds separately throughout the world.

Here are some examples contributions made to the community in 2000:

-Foundation grants, such as $60,000 to Bridge Over Troubled Waters in Boston and$45,000 to the Children’s Trust Fund of New Bedford, came to a total of $850,500 forthe year.

-Other grants, totaling $25,050, were handed out through special fundraisingactivities such as pledge-a-thons or walk-a-thons..

-Product grants, totaling $ 37,827 in Polaroid products, were used to support themissions of various groups.

-Gifts, in the amount of $318,444, came from employees and were matched dollar fordollar by the company resulting in $636,888 going to qualifying non-profitorganizations.

-Scholarships in the amount of $25,000 for college or vocational programs wereawarded to children of Polaroid employees.

-Our Volunteer Action Fund, totaling $16,000, made grants to qualifying non-profitorganizations in which Polaroid employees volunteer at least 50 hours a year of theirpersonal time.

All of the above donations amounted to $1,272,821 donated by the PolaroidFoundation during 2000 in the U.S., not including donated time of Polaroidemployees who volunteer to assist non-profit organizations. The total amount donatedby Polaroid worldwide is $2,839,000, up from $2,345,000 donated in 1999.

Performance of suppliers As discussed previously in this report, Polaroid’s “Supplier Principles of Conduct”begins with a note to our suppliers that:

“It is important that we conduct business in a manner that recognizes universalstandards of human right, environmental protection safe and healthy workenvironments and high principles of business ethics. The Supplier Principles coverenvironment and safety, work practices, compensation, a no gift policy, managementleadership and vendor assistance.” (For full text, see Appendix D, page 61.) To date, there have been no incidences of non-compliance with prevailing national orinternational standards.


Outsourcing is an important part of Polaroid’s manufacturing and marketingoperations. From substrates for making negative and positive, to solvents, metals,plastic resins, fasteners and packaging, parts and components from vendors areintegral parts of Polaroid’s manufacturing process. Polaroid focuses its ownmanufacturing on only those activities that are central to its technology. For example,we would not manufacture the web materials we coat, but concentrate on coating theweb with our proprietary photoactive coatings. Polaroid outsources production ofdigital cameras, many of its smaller instant cameras and all of the parts for its instantcameras, produced in the Vale of Leven, Dumbarton, Scotland or Shanghai, China.While Polaroid does not have a formal auditing process for its vendors, engineers andpurchasing managers do inspect the vendor’s operations and verify conformance withthe supplier principles as a condition of vendor pre-qualification or during routinevendor inspections.

Products and servicesThere are no major economic issues and impacts associated with the use of Polaroid’sprincipal products and services, including disposal. The instant photo process isstable and does not release chemicals into the environment. Even the residue leftover is purposefully safe. One family of instant films is completely self-contained,and all our instant film products are designed for stability and longevity. The silveremulsions are stable and do not leach into the environment.

Again, Polaroid’s digital products are designed to be safe and environmentally sound.With the major environmental impacts managed in the factory, digital imagingminimizes the use of materials in image capture, sharing and printing. Recycling of adigital image requires only a tiny input of electricity to purge the memory file.

Social performance -Employee retention rates are approximately 91.3 percent for salaried employees, and

96.7 percent for hourly employees. (This is based on a turnover rate of 8.7 percentfor exempt and 3.3 percent for hourly employees.)

-A Polaroid employee is a member of the Board of Directors

-1999 (2000 report date) Polaroid is recognized for employee involvement inphilanthropy; listed 37th in the Top 100 Best Corporate Citizens*

-2000 (2001 report date) – Polaroid is listed 9th in the Top 100 Best CorporateCitizens.

(*For information on the two reports listing Polaroid in The 100 Best CorporateCitizens for 2001 go to http://www.business-ethics.com/100best.htm.)

http://www.business-ethics.com/100best.htm


Health and safety

Workplace health and safetyTo ensure the well being of employees, most major Polaroid divisions have full-timesafety managers and employee safety committees that meet regularly. Thecompany’s goals, supported by extensive health and safety policies and instructions,are to minimize accidents and eliminate hazards that may cause injury or illness,property loss or business interruptions and to demonstrate leadership on safety issues.

Programs at all Polaroid facilities monitor the work environment for employeeexposure to hazards, such as chemical fumes or excessive noise. An extensivesampling program provides both baseline data and information for comparisonpurposes, and results are shared with employees. When the data exceed Polaroidexposure guidelines, which are more restrictive than most OSHA requirements orindustry norms, immediate corrective action is taken.

In addition, a safety awareness program is helping employees understand the commoncauses of workplace and off-the-job accidents and the role they must play forpreventing them. The program, designed by a team of Polaroid safety experts,informs employees about the elements of their “safety immune system” andencourages them to take a close look at their everyday decisions that may contributeto preventable injuries. All Polaroid safety professionals have completed training inthe program.

The Polaroid Corporate Safety Instructions Manual defines the company’s core safetyprograms and corporate safety policies, responsibilities and procedures.Supplemented by a pocket-sized safety booklet, the manual is available to allemployees.

Polaroid’s Material Safety Data Sheets (MSDS) use the format approved by theInternational Standards Organization and endorsed by the Chemical ManufacturersAssociation and the American National Standards Institute. Polaroid ExposureGuidelines, often more restrictive than those set by OSHA, have also been establishedfor all chemicals. Up-to-date MSDS information is available on-line to all employeeswho work with chemicals and to Polaroid’s medical staff. Additionally, a ChemicalIntroduction System notifies Polaroid’s chemical processors and spill responders ofthe hazards and handling requirements of each new chemical before it is introducedinto inventory.

Shared Learnings meetings make the results of safety audits available to variouslevels of management and provide a forum for discussing best practices for health andsafety. And, a new site on Polaroid’s Intranet contains a wealth of information for thecompany’s HSE professionals. Developed by HSE employees, the site makes iteasier to update important information and provides better access to data that waspreviously stored in a variety of locations.


In the area of health and medicine, several key programs were conducted foremployees by the Corporate Medical department. A company-wide osteoporosis-screening program was held. All women over the age of 50 were offered a bonedensity study. An educational program and home mailing on breast cancer andmammography was distributed and women were encouraged to follow the AmericanCancer Society’s breast cancer mammography and detection program. A screeningprogram was offered for colon cancer detection. A new Employee AssistanceProgram was begun, including 24-hour-a-day telephone access to support andcounseling for all employees, as well as a special “hotline” for teenager issues.

Worldwide reportable injury rates based OSHA-reporting requirements (per100 employees)

1998 1999 2000***Annual incident rateReportable under OSHA*

1.45 1.51 1.36

Rate of lost-time**incidents

0.56 0.53 0.75

Rate of lost-time** days 5.77 5.06 4.50

*Worldwide injuries and illnesses that are or would be reportable underguidelines of the U.S. Occupational Safety and Health Administration.

** Lost-time with days away from work.*** Year 2000 includes employees and contract workers, while 1998 and 1999numbers are employees only.

Safety auditsFormal safety and health audits give senior managers immediate access to findingsand require that they respond formally. Divisions, departments and shift teams alsoevaluate risks and related precautions that are specific to their operations, andPolaroid makes extensive use of outside consultants to evaluate specific aspects ofsafety.

Hazard analysisTeams of HSE professionals and line employees regularly analyze in writing the risksinherent in specific tasks and the precautions required to minimize those risks. Allchemical processes are also reviewed in writing to assess their safety and theirpotential for fire or explosion. Performance of these written reviews is verifiedthrough corporate and divisional safety audits.


Accident investigation

Polaroid has developed a unique framework for investigating the causes of workplaceaccidents and recommending related improvements to the safety management system.This framework categorizes all occupational injuries and illnesses by type and cause:-Category I: Operational—Instant: Cases that are directly job-related and that occurinstantly.-Category II: Operational—Cumulative: Cases that are clearly caused or aggravatedby the job, where damage to a body part occurs over a period of time.-Category III: Primarily Non-Operational: Cases that happen at work but not duringthe direct performance of a job, a type that could occur almost anywhere.-Category IV: Primarily Personal: Cases where a non-work-related, pre-existingcondition is the primary contributing factor.

Worldwide categories of work-related accidents, 1998-2000(OSHA-reportable accidents per 100 employees)

Base Year1993

1998 1999 2000

Category I: Operational—Instant 1.05 0.84 1.04 0.93Category II: Operational-Cumulative

0.48 0.53 0.35 0.35

Category III: PrimarilyNon-Operational

0.22 0.06 0.06 0.07

Category IV: Primarily Personal 0.01 0.03 0.06 0.01

Women in executive ranksIn 2000, Polaroid’s Board of Directors had eleven members; two were women. In thecorporate officer ranks, three of the 20 positions held are women. In the category ofofficials and managers, women hold 146 of the 584 positions. We work tocontinuously improve the number of women in executive ranks. Polaroid hasmentoring programs for minorities and women.

Products and servicesAs seen on the page below, customer satisfaction levels have improved after a slightdecline in 1999. There has been an increased use of Internet resources and emailresponse, which has reduced telephone contacts.


Year Customer Satisfaction Index*2000 90

1999 89

1998 91

* Customer satisfaction index is calculated by Polaroid from a suite of customerservice metrics.

Integrated performancePerformance indicators The following performance indicators provide some insight into Polaroid’ssustainable performance. These indicators are evolving. While consistency from yearto year is important, developing indicators that track one’s progress on the road ofsustainability will drive future success.

Polaroid began reporting its environmental progress thirteen years ago to publicizethe initial results of it Toxics Use and Waste Reduction Program. The focus wasexclusively on chemicals, but later included non-regulated waste because it wasrecognized to be a significant volume of material.

As the US Toxics Release Inventory (TRI) information becomes widely used, weshifted our reporting efforts to TRI based information as practical and useful tool forcomparison with other industries. These numbers also represent about 85 percent ofthe chemical use or emissions for Polaroid worldwide. We have changed ourindicators in the past and will continue to do so as information and understandingimproves on what is involved in sustainable business. Polaroid’s sustainabilityindicators are:

Economic

Sales

Net Earnings

Diluted earnings per common share

Social

OSHA Reportables

Donations

Environmental

Energy Greenhouse Gasses

Water

Waste


TRI Chemicals

Economic Year Sales Net Earnings/(loss) Diluted Earnings 2000 $1,855, 600 $37.700, 000 $0.84

1999 $1,978,600 $8,700,000 $0.20

1998 $1,845,900 $(51,000,000) $(1.15)

Social OSHA-reportable injury numbers Data type 1998 1999 2000 Reportable incidents 1.45 1.51 1.36

Lost time rate 0.56 0.53 0.75

Lost time days 5.77 5.06 4.50

Note: Year 2000 includes employees and contract workers, while 1998 and 1999numbers are employees only.

Donations* 2000 $2,839,000

1999 $2,345,000

(*Made through the Polaroid Fund at The Boston Foundation)

Environment Year Gigajoules Indexed to square meter 2000 2,254,817 0.166

1999 2,348,499 0.161

1998 2,426,840 0.180

GHG (Greenhouse Gases) 2000 219,920 tonnes

1999 217,271

1998 229,064


Water 2000 769,829 cubic meters.

Waste2000 348 tonnes

The above represents the total of regulated chemical waste and unregulated solidwaste. This is the first year worldwide data collection for 2000 internationalChemical Waste. U.S. hazardous waste data is not reported in even-numbered years.

Non-regulated solid waste (including recycled materials) 2000 8,163 tonnes

1999 9,705 tonnes

1998 10,143 tonnes

Toxics Release Inventory (TRI) chemical data (Also, see Appendix on page 65 for more detailed TRI data.) 2000 2,185 tonnes

1999 2,162 tonnes

1998 2,366 tonnes


Appendices

Appendix A – Key environmental policies

1998 Health, Safety and Environmental (HSE) policy

Polaroid has a global commitment to protect the environment and provide a safe andhealthy workplace. It will constantly strive to ensure that neighbors and otherpotentially affected parties experience the lowest adverse health, safety andenvironmental effects from its activities and products. We shall develop and maintainstandards of performance in the above areas, which not only comply with allapplicable laws and regulations, but also are consistent with best practices and ourown values.

This policy is publicly available and to implement it we will:-Be accountable for HSE impacts of all business decisions.

-Design our facilities, processes and products with the minimum possibleadverse impact on human health, safety and the environment.

-Eliminate, substitute, reduce or control the use, release and disposal ofhazardous materials.

-Recognize and anticipate all HSE hazards associated with our businessoperations, transportation, use and disposal of our products and waste, assesstheir risk and act to prevent, eliminate or control them.

-Conserve natural resources by optimizing the use of raw materials and energythrough conservation, recovery and recycling where feasible.

-Provide all employees with the information and training they need to fostersafe and environmentally responsible behavior.

-Periodically review our HSE policies and programs and improve asappropriate.

HSE awareness is the responsibility of each individual and business function.Successful management of HSE issues provides an opportunity to improve Polaroid’sperformance, add value to the Company and support our growth.


1998 Product Stewardship policy

We at Polaroid recognize the importance of 1) minimizing the environmental, healthand safety exposure and risks associated with our products, and 2) reducing theresources used in the production and use of our products, while continuing to providevalue to our customers. In order to achieve this goal, Polaroid Corporation iscommitted to the following product stewardship code:

1) Product program managers and business leaders will drive implementation ofproduct stewardship.

2) Cross-functional product development teams led by product program managerswill ensure that health, safety and environmental exposures and risks and naturalresource utilization are key considerations when designing new product systems andwhen improving existing products.

3) Polaroid will maintain health, safety and environmental standards that meet orexceed those established by all relevant laws, regulations and other applicablerequirements.

4) All Polaroid products and chemicals therein will be evaluated for human health,safety and environmental impacts associated with the acquisition of raw materials,manufacturing, distribution, use, foreseeable misuse and product disposal.

5) Environmental management and measurement systems will be used regularly toassess chemical, material and energy flows associated with Polaroid manufacturingfacilities and will be used as a tool to reflect progress toward environmental goals.

6) Polaroid will provide customers appropriate information and training to safelyhandle, use and dispose of its products as well as respond to customer questions,concerns and suggestions regarding health, safety and environmental impacts. Health,safety and environmental information pertaining to Polaroid’s business will beevaluated and updated on a regular basis.


Appendix B -- 2000 Annual Report to Shareholders

14. Contingencies (related to the environment – page 42, 2000 Annual Report)

The company owns and operates facilities that are subject to certain federal, state andlocal laws and regulations relating to environmental protection, including thosegoverning the investigation and remediation of contamination resulting from past orpresent releases of hazardous substances. Certain of these laws and regulation mayimpose joint and several liability on the company for the costs of investigation orremediation of such contamination, regardless of fault or the legality of originaldisposal.

The company, together with other parties, is currently designated a PotentiallyResponsible Party (PRP) by the United States Environmental Protection Agency andcertain state agencies with respect to the response costs for environmentalremediation at several sites. The company believes that its potential liability withrespect to any site and with respect to all sites in the aggregate will not have amaterially adverse effect on the financial condition or operating results of thecompany.

Due to a wide range of estimates with regard to response costs at those sites andvarious other uncertainties, the company cannot firmly establish its ultimate liabilityconcerning those sites. In each case in which the company is able to determine thelikely exposure, such amount has been included in the company’s reserve forenvironmental liabilities. Where a range of comparably likely exposures exists, thecompany has included in its reserve at least the minimum amount of the range. Thecompany’s aggregate reserve for these liabilities as of December 31, 1999 andDecember 31, 2000 was $1.4 million and $.8 million respectively, and the companycurrently estimates that the majority of the reserve will be payable over the next twoto three years. The company reviews the analysis of the data that supports theadequacy of this reserve on a quarterly basis. The reserve for such liability does notprovide for associated litigation costs, which, if any, are expected to beinconsequential in comparison with the amount of the reserve. The company willcontinue to accrue in its reserve appropriate amounts from time to time ascircumstances warrant. This reserve does not take into account potential recoveriesfrom third parties.

Federal law provides that PRPs may be help jointly and severally liable for responsecosts. Based on current estimates of those costs and after consideration of thepotential estimated liabilities of other PRPs with respect to those sites and theirrespective estimated levels of financial responsibility, the company does not believeits potential liability will be materially enlarged by the fact that liability is joint andseveral.


Appendix C -- CERES Principles

IntroductionBy adopting these Principles, we publicly affirm our belief that corporations have aresponsibility for the environment, and must conduct all aspects of their business asresponsible stewards of the environment by operating in a manner that protects theEarth. We believe that corporations must not compromise the ability of futuregenerations to sustain themselves.

We will update our practices constantly in light of advances in technology and newunderstandings in health and environmental science. In collaboration with CERES,we will promote a dynamic process to ensure that the Principles are interpreted in away that accommodates changing technologies and environmental realities. Weintend to make consistent, measurable progress in implementing these Principles andto apply them to all aspects of our operations throughout the world.

Protection of the biosphereWe will reduce and make continual progress toward eliminating the release of anysubstance that may cause environmental damage to the air, water, or the earth or itsinhabitants. We will safeguard all habitats affected by our operations and will protectopen spaces and wilderness, while preserving biodiversity.

Sustainable use of natural resourcesWe will make sustainable use of renewable natural resources, such as water, soils andforests. We will conserve nonrenewable natural resources through efficient use andcareful planning.

Reduction and disposal of wastesWe will reduce and where possible, eliminate waste through source reduction andrecycling. All waste will be handled and disposed of through safe and responsiblemethods.

Energy conservationWe will conserve energy and improve the energy efficiency of our internal operationsand of the goods and services we sell. We will make every effort to useenvironmentally safe and sustainable energy sources.

Risk reductionWe will strive to minimize the environmental, health and safety risks to ouremployees and the communities in which we operate through safe technologies,facilities and operating procedures, and by being prepared for emergencies.


Safe products and servicesWe will reduce and where possible eliminate the use, manufacture or sale of productsand services that cause environmental damage or health or safety hazards. We willinform our customers of the environmental impacts of our products or services andtry to correct unsafe use.

Environmental restorationWe will promptly and responsibly correct conditions we have caused that endangerhealth, safety or the environment. To the extent feasible, we will redress injuries wehave caused to persons or damage we have caused to the environment and will restorethe environment.

Informing the publicWe will inform in a timely manner everyone who may be affected by conditionscaused by our company that might endanger health, safety or the environment. Wewill regularly seek advice and counsel through dialogue with persons in communitiesnear our facilities. We will not take any action against employees for reportingdangerous incidents or conditions to management or to appropriate authorities.

Management commitmentWe will implement these Principles and sustain a process that ensures that the Boardof Directors and Chief Executive Officer are fully informed about pertinentenvironmental issues and are fully responsible for environmental policy. In selectingour Board of Directors, we will consider demonstrated environmental commitment asa factor.

Audits and reportsWe will conduct an annual self-evaluation of our progress in implementing thesePrinciples. We will support the timely creation of generally accepted environmentalaudit procedures. We will annually complete the CERES Report, which will be madeavailable to the public.

DisclaimerThese Principles establish an environmental ethic with criteria by which investors andothers can assess the environmental performance of companies. Companies thatendorse these Principles pledge to go voluntarily beyond the requirements of the law.The terms “may” and “might” in Principles one and eight are not meant to encompassevery imaginable consequence, no matter how remote. Rather, these Principlesobligate endorsers to behave as prudent persons who are not governed by conflictinginterests and who possess a strong commitment to environmental excellence and tohuman health and safety. These Principles are not intended to create new legalliabilities, expand existing rights or obligations, waive legal defenses, or otherwiseaffect the legal position of any endorsing company, and will not be used against anendorser in any legal proceeding for any purpose.


Appendix D -- Polaroid Supplier Principles of Conduct and other related businesspractices

Business practices and conductRespect for one another as members of the company, for our customers, for our suppliers,for our shareholders, and for the communities in which we work, is a core value atPolaroid. We treat all of our stakeholders with respect and dignity in order to create awork environment where individual and cultural differences are valued and harassment isnot tolerated.

The company’s success and the achievement of a worthwhile working life for eachmember are dependent on a work environment based on mutual respect. Each membercan best utilize his or her special talents and skills to achieve our common goals when weregard each other with esteem.

To that end, certain principles and rules help define some of the boundaries andexpectations that guide the day-to-day activities and behavior of company members.

Code of Business EthicsPolaroid’s Code of Business Ethics, contained in the Rules section of this BusinessPractices and Conduct policy, states the rules and boundaries that govern the conduct ofall members of the company. The code is intended to assure compliance with Polaroid’sexpectations, as well as with applicable laws.

Achieving diversityAn essential element of our policy is also to achieve and maintain a diverserepresentation and distribution, notably of ethnic minorities and women, throughout ourwork force, reflecting their distribution and availability in the communities from whichwe hire. To this end, the company intends, to the extent possible, to increase diversity,particularly of ethnic minorities and women, in areas in which the company believes thatsuch representation is not yet adequate.

Valuing individuality and diversityBoth the individuality and the broad diversity of members of the Polaroid work force arecritical for the company’s success. Both are enhanced by the company’s respect forindividual privacy to the extent compatible with business requirements. Both also arestrengthened by the company’s determination to have members selected, rewarded, andpromoted on the basis of their value and contribution to the company, and not on thebasis of personal characteristics, such as race, color, religion, gender, national origin, age,veteran status, disability, marital status, or sexual orientation. Furthermore, the companywill not tolerate harassment in the Polaroid work place of any member on account of anypersonal characteristic.


Appendix E – Personnel Policy (PP101) – General statement of policy

Two productsWe have two basic products at Polaroid:

• Products that are genuinely unique and useful, excellent in quality, made well andefficiently, so that they present an attractive value to the public and an attractiveprofit to the Company.

• A worthwhile working life for each member of the Company a working life that callsout the member’s best talents and skills – in which he or she shares in theresponsibilities and the rewards.

These Two Products are inseparable. The Company prospers most, and its members findtheir jobs most worthwhile, when its members are contributing their full talents andefforts to creating, producing, and selling products of outstanding merit.

Principles we followWe serve both products if we create a working environment, which encourages thosehuman traits that are productive both for the individual and for the group. Thisenvironment would be shaped around these principles:

• Most of us tend to be more industrious when we feel the job is worth doing andchallenging.

• We tend to act more responsibly when we are put in charge of our own actions andare held accountable for them.

• We tend to give our minds to the job, as well as our time, if we understand thegroup’s objectives and see how our work fits into them.

• We tend to work better if we see that we can get ahead by making more of ourselves.• We tend to work better when there is mutual respect, mutual concern, and mutual

honesty among us as human beings, regardless of the status of our jobs.

Demands to be metTo create this productive environment places demands 1) on the Company 2) on each ofus as individual members of the Company, and 3) on the working relationships betweenthe members of each group and their leaders.

Demands upon the CompanyTo create this environment calls for Company policies and organized ways for puttingthese policies into practice that will:

1. Provide clear, challenging, and profitable Company objectives;2. Focus the efforts of all in the Company through the clear statement of these objectives,

full discussion of the responsibilities we undertake to achieve them, and clear reportingof results;

3. Design jobs to use equipment, methods, and talent to best effect;


4. Demand conscientious, skillful performance from every member regardless of the paylevel or status of the job. Recognize excellence, pay well for it, respect it. Discourageshoddy performance; correct it if practicable; reject it if not;

5. Provide opportunity for personal growth through continuous training and education,career planning and counseling, manpower forecasting, job posting;

6. Recognize the importance of our pay-and-benefit rules and our other personnel policiesas the footing on which we all must stand in our relations with each other and withPolaroid as a Company. View these policies as the law of our land, to be shaped throughvigorous participation of all of those whose lives it affects; to be studied and reshapedwith all the wisdom and ingenuity we can summon as we see new needs and newopportunities.

Demands upon individuals These demands upon the Company are matched by similar demands upon all of us asindividual members, whatever our status, whatever our level of pay:

1. To take the same adult view of our obligations and responsibilities on the job as we takeoff the job as members of our families and home communities;

2. To demand the best of ourselves in the performance of our assigned jobs, regardless ofour status or pay level;

3. To recognize and help to meet the obligation we share with the other members of ourworking group to accomplish the group’s objectives;

4. To prepare for, and take in stride, the rapid changes that go along with the rapid growthof the Company, changes in the make-up of our work group, in the equipment wehandle, in the character and location of our work;

5. To manage our time responsibly; to understand that merely being present does not byitself perform the job, but that, nevertheless, to perform the job we have to be present;that our value to the Company (and our pay and our progress) depends on our attendanceas well as on our talent and effort;

6. Expect, as responsible individuals, to get individual treatment under our specialcircumstances and be willing to see others get different treatment under their differentcircumstances. In our relationships with others in our work group and with other workgroups in the Company, rely on give-and-take, over a period of time, to balance outdifferences in treatment.

7. Recognize our obligations to stockholders, customers, and to other members of theCompany.

Demands upon our working relationshipsOur success also hinges on the kind of working relationship between team leaders andteam members that evokes full responsibility of every individual and focuses it on theCompany’s objectives.This relationship calls for something like this way of working together:

1. The supervisor presents to the members of the group the total objective. . “ Here is theobjective we have to accomplish - what, when, why.”

2. He or she calls on every member of the group to share the responsibility foraccomplishing the objective. “As part of your job, share with me the task of working out


the overall plan our group will follow to meet the objective and our individual parts inthe plan.”

3. Everybody clearly understands his or her responsibility, accepts it, and answers for his orher own performance within the plan.

4. The leader helps the group work out changes in group plans as the job proceeds, helpsindividuals work out changes in their individual plans – “ How do we handle this newsituation? What do we do to meet our objective in spite of this obstacle?

5. Keeps all informed on progress problems, keeps the group’s objective in sharp focus aspart of the total Company objective. “Here’s where our part stands. Here’s where thewhole Company program stands. How do we go on from here?”

Different groups will develop different ways of working. The same group will shift itsgears for different loads and speeds. But the essential idea remains: a workingrelationship in which all are concerned with the group’s objective, doing their best toachieve it.

For those of us in supervisory jobsYou are the member of your work group who must answer for the performance of yourwork group – answerable for meeting of schedules, for costs, for the responsible actionand effectiveness of your group in accomplishing the objectives undertaken bythe group.

Treat those you supervise as you expect to be treated by your supervisor, with the sameindividual consideration and sensitivity, and with the same demands for performance andresponsible behavior.

For allWe are pioneering here at Polaroid in new ways of working together. We enjoy unusualprivileges, and, in return, we undertake some unusual responsibilities.

Like all privileges, there have to be written guides to go with them to be sure they arebeing uniformly and fairly administered. The unusual responsibility we assume is to usejudgment in applying these guides. We don’t want to follow them blindly, just to makedecisions easy.

We don’t want people to say, “You have to do it that way because the book says so.” Wedon’t want everything to have to be spelled out exactly in black and white. We do wantconsideration and thought behind our rules and their administration.

We must be prepared to see and tolerate differences in working practices and in treatmentfrom individual to individual and from group to group, accepting these differences asunavoidable and indeed essential as we replace rigid rule with reasoned judgment inapplying our principles in differing circumstances.

Issued 5/1/67Reissued 1/2/97


Appendix F – Toxics Release Inventory (TRI) reports 2000 and 1999

The following tables include all TRI-reportable chemicals used at any Polaroid site in the U. S. during 2000 in quantities greaterthan 10,000 pounds, even when their use resulted in no emissions.

Site Chemical Released Energy Energy Recycled Recycled Treated Treated Released Total(Production Recovery Recovery on site off site on-site off-site (one-timeRelated) on site off-site events)

New Bedford methanol 30000 0 0 0 0 27000 19000 0 76000methyl ethyl ketone 7200 0 0 76000 0 280000 105000 0 468200nitrate compounds 0 0 0 0 0 0 57000 0 57000nitric acid 0 0 0 0 0 9700 0 9700silver compounds 120 0 0 0 15000 0 100 0 15220polycyclic aromaticcomps.

0 0 0 0 0 0 0 0 0

benzo(G,H,I)perylene 0 0 0 0 0 0 0 0 0

NB Total 37320 0 0 76000 15000 316700 181100 0 626120

Norwood methanol 6396 0 1658 0 0 132787 65227 0 206068polycyclic aromaticcomps.

0 0 0 0 0 0 0 0 0


Norwood Total 6396 0 1658 0 0 132787 65227 0 206068

Waltham-1265

acetonitrile 228 0 54910 0 318 3910 5678 0 65044

Main Street butyl acrylate 21 0 0 0 0 345 0 0 366chlorobenzene 4342 0 4433 176226 2128 70768 52663 0 3105601,2-dichlorobenzene 1079 0 32732 263891 38 17623 44529 0 359892methanol 10256 0 594063 17350 97715 215746 248330 0 11834602-methoxyethanol 8 0 4036 0 0 123 32527 0 36694methylene chloride 5046 0 0 137314 357362 66840 173123 0 739685


methyl ethyl ketone 10257 0 16352 0 3810 313983 12065 0 356467n-butyl alcohol 542 0 236 0 2334 13716 9921 0 26749n,n-dimethylformamide 76 0 6031 0 0 1236 4636 0 11979toluene 3121 0 393985 163072 4471 50901 214233 0 829783triethylamine 111 0 0 0 0 1813 521 0 2445polycyclic aromaticcomps.

0 0 0 0 0 0 0 0 0


1265M Total 35087 0 1106778 757853 468176 757004 798226 0 3923124

Waltham manganese compounds 78913 0 0 0 0 0 0 0 78913Winter Street zinc compounds 22404 0 0 0 0 0 1 0 22405

polycyclic aromaticcomps.

0 0 0 0 0 0 0 0 0


Res.Total 101317 0 0 0 0 0 1 0 101318

Corporate Totals 180120 0 1108436 833853 483176 1206491 1044554 0 4856630

4,856,630 lbs. = 2,185 tonnes


The following tables include all TRI-reportable chemicals used at any Polaroid site in the U. S. during 1999 in quantities greaterthan 10,000 pounds, even when their use resulted in no emissions.

Site Chemical Released Energy Energy Recycled Recycled Treated Treated Released Total(Production Recovery Recovery on site off site on-site off-site (one-timeRelated) on site off-site events)

NewBedford

methanol 29000 0 1300 0 0 35000 12000 0 77300

methyl ethyl ketone 7300 0 16000 90000 0 330000 81000 0 524300nitrate compounds 0 0 0 0 0 0 62000 0 62000nitric acid 0 0 0 0 0 12000 600 62000silver compounds 120 0 0 0 20000 0 140 0 20260

NB Total 36420 0 17300 90000 20000 377000 155740 0 745860

Norwood methanol 8767 0 1165 0 0 125275 106029 0 241236

Norwood Total 8767 0 1165 0 0 125275 106029 0 241236

Waltham-1265

acetonitrile 851 0 42958 0 0 0 48720 0 92529

MainStreet

butyl acrylate 26 0 0 0 0 0 0 0 26

chlorobenzene 108 0 15222 143098 821 0 88631 0 2478801,2-dichlorobenzene 1066 0 8458 182450 395 0 45688 0 238057glycol ethers 4451 0 6266 123730 0 0 34250 0 168697methanol 29372 0 300303 0 70 185004 263232 0 7779812-methoxyethanol 76 0 0 0 0 0 50884 0 50960methylene chloride 22807 0 0 85418 591534 0 29332 0 729091methyl ethyl ketone 16651 0 712 0 0 492139 313110 0 822612


methyl isobutyl ketonen-butyl alcohol 558 0 0 0 0 20581 9613 0 30752n,n-dimethylformamidetoluene 1716 0 62333 193180 0 0 297763 0 554992triethylamine 355 0 0 0 0 0 43 0 398zinc compounds

1265M Total 78037 0 436252 727876 592820 697724 1181266 0 3713975

Waltham manganese compounds 9379 0 0 0 71939 0 0 0 81318WinterStreet

zinc compounds 2576 0 0 0 19428 0 1 0 22005

Res.Total 11955 0 0 0 91367 0 1 0 103323

Corporate Totals 135179 0 454717 817876 704187 1199999 1443036 0 4804394

4,804,394 lbs. = 2,162 tonnes

CorporateRegister.com 11/07/2006

polaroid corporationâ€™s 2000 sustainability report

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