Summit Brands Supplier Sustainability

Initiative Training

4/15/13

Today’s purpose

• Help suppliers understand the benefits of sustainability.

• Provide tools to begin environmental data collection initiative.

• Comply with Summit and their customers’ expectations.

Agenda

1. Sustainability at Summit Brands

2. Supply chain initiative

3. Data collection process

4. About CDP

Sustainability at Summit

What is Sustainability?

“Development that meets the needs of the present without compromising the ability of future generations to meet their own needs".

PEOPLE

PLANET

PROFIT

Brundtland Commission of the United Nations - March 20, 1987

Dr. David Shy, President of Furman University“Sustainability is no longer the right thing to do, it is

the SMART thing to do” Benefits of Sustainability:• Cut risks and costs (P&G saved $600M at 200 plants)• Increase profits• Create competitive advantages (marketing)• Drives innovation and efficiency • Improves economic communities• Benefits communities & environment

Benefits of Sustainability

SUSTAINABILITY: Where did we start? Developed a sustainability initiative in 2010 Formed a “Green Team” ISO 14001 Certification

• Manage sustainability Efforts through use of a formal & organized EMS

• Drive continuous improvement Focused on Walmart Scorecard & other customer req.

• Began measuring GHGs (2010, 2011, 2012) – set goal• Measure Water Usage & Waste Generation – set goals

Develop sustainability flyers Get employees involved (AIM Program) Joined NISBC – Get Bright Green Certified (2 Star) Started recycling Started integrating green chemistry using DfE

Sustainable AIM Ideas

30% of total AIM ideas Since July 2010: Saved $84,156 EXAMPLES:• Use paper shredding service – saves time, $,

confidentiality, & recycles ($1,323)• Eliminate hardcopy AR Registers – go electronic –

save paper, time, storage fees ($8,440)• Set all computer default print to B&W ($960)• Reconfigure Production Line ($20,000)• Print all high-quality mock up labels in-house

($4,500)

Green Chemistry Initiative - DfE

Rigorous review process by EPA to ensure products are safe for environment & consumers. http://www.epa.gov/dfe/

2011: Began with 3 products• Dishwasher Magic (disinfectant) – DfE Certified• Washer Magic – DfE Certified• Disposer Care

2013:• Complete Disposer Care• Dry Cleaner’s Secret

2014: • New sustainable

drain line formulations

Sustainable Packaging (DWM Club Pack Display)

The Dishwasher Magic twin pack was originally packaged in a Clamshell tray (as shown in the first image above). By switching to the new Shrink Wrap sleeve, we saved roughly 418.37 sq. ft. of cardboard & $175 / pallet.

CAD# Square Feet Qty/Pallet Total Sq FtG7860A4 15.58 30 467.4Layer Pad 11.61 1 11.61

479.01119,753

TOTAL SQ FT (EACH PALLET)TOTAL SQ FT (250 PALLETS)

Clamshell Tray

CAD# Square Feet Qty/Pallet Total Sq FtG8639M1 17.45 2 34.9G8639J2 12.87 2 25.74

60.6415,160

TOTAL SQ FT (EACH PALLET)TOTAL SQ FT (250 PALLETS)

Shrink Wrap Sleeve

Sustainable Packaging – Washer Magic

50% reduction in packaging, while maintaining safe formulation (2X concentrated)

Sustainable Packaging – Dry Cleaner’s Secret

Packaging Reductions:• Inner Foil packets – 19%• Cartons – 6%• Shippers – 25%• Pallet Case Capacity – increase 8%

SUMMIT SUSTAINABILITY GOALS 2013 Score 72% on Walmart scorecard by Dec. 31, 2013 (currently 41%)

Walmart KPI

TASK Target Date

3 & 4 Expand supplier engagement program Jul 2013

• Calculate total energy use for Summit & 8 suppliers

• Establish energy reduction and renewable energy purchasing goals to offset energy use and publish goals on website

• 8 suppliers to Calculate 2012 GHG emissions & submit to CDP

8 Implement a program to ensure that all fragrances comply with IFRA - International Fragrance Association

Sept 2013

12 & 14 Sign up for American Cleaning Institute SmartBrief notifications to monitor the most recent developments in ingredient safety research and integrate into our own documented assessment process

Oct 2013

13 Safe / Green Chemistry – Identify and reduce Chemicals of Concern by developing and implementing formal documented risk assessment process (begin using safety and sustainability scoring process), make general process publicly available

Nov 2013

7 Publicly disclose ingredients through website or toll-free number (KPI 7) similar to what we already to for DfE Certified products

Dec 2013

SUMMIT SUSTAINABILITY GOALS 2013 DfE Certifications – 2013

1. DCS – finding a new compostable cloth2. Disposer Care – ON HOLD

Meet public GHG, waste, and water reduction goals

Air Waste Water

Reduce normalized Greenhouse Gas Emissions

10% by the end of 2013

Reduce absolute solid waste to landfill 10% by

the end of 2013

Reduce absolute water usage 15% by the end of

2013

ACTION PLAN: Reduced Unipak shipments to DC by

½ (52 down to 26/year) Elimination of FL WH Conestoga will reduce / eliminate

facility transfers Addition of Dry Cleaner’s Secret

(lightweight and higher cost item) – reduce emissions & benefit normalization calculation(s).

STATUS: 2012 calculations will be available in April to evaluate progress.

ACTION PLAN: Increase recycling –

new ACE Contract Reduce # of dumpster

trips STATUS: On track to

reduce by 40% by the end of the year

ACTION PLAN: Focus on modifications

on Corporate sprinkler system (accounts for 52% of PC, DC and Corp. water usage)

STATUS: On track to surpass goal by modifying sprinkler system summer of 2013.

Supply chain initiative

Supply chain impacts

In general, 90% of Walmart’s carbon emissions are generated by suppliers.

Suppliers have a considerable role to play in reducing environmental impacts.

What’s your position in the chain?

YOUUPSTREAM DOWNSTREAM

Reasons for supply chain sustainability

Risk mitigationEnvironmental

impact reduction

Customer requirement

EfficiencyCommitment

to responsibility

Innovation

Improved bottom line

Competitive advantage

Enhanced brand image

Walmart’s supply chain sustainability initiatives

Launched supply chain program in 2009, AKA the Walmart Supplier Sustainability Assessment (SSA) or 15 Questions.

Stage 1

Walmart’s supply chain sustainability initiatives

Implemented Walmart Sustainability Index in 2012. Impacts 100 product

categoriesPartnered with The

Sustainability Consortium

Stage 2

Previous Walmart Scorecard was replaced by the “Walmart Sustainability Index” Surface Cleaners More in depth Higher expectations for our suppliers & product

development (green chemistry) 1 shot per year Our score will be used by buyers

to rank us against our competitors & make decisions

New Walmart expectations 2012

Examples of new expectations: All major suppliers complete a GHG

inventory & report to CDP Public disclosure of our ingredients Fragrances comply with IFRA (International Fragrance

Association) Ingredients meet the OECD 301 biodegradability criteria Must responsibly source palm oil Rigorous & documented product safety process Eliminate Materials of Concern & VOC’s from products

New Walmart expectations 2012 (cont.)

Supply chain sustainability process

Report environmental

impacts to Summit

Disclose to CDP

Set and implement reduction

targets

Project timeline

April May June July

Training

Data collection

CDP reporting

Data collection process

Supplier sustainability assessment

Establish baseline measurements

Annual data collection process

Data collection tool

Developed by our partners at Renewable Choice.

Online access; easy to use. Each supplier will receive unique username

and password.

http://www.mosaic-client.com/summit/summit-login.html

Facility

Energy

Emissions

Waste

Water

Measurement categories

Facility name Address Square footage # of employees

Facility

What you’ll provide:

Energy

What you’ll need:• Utility bills for previous 12 months

What you’ll provide:

• Electricity used• Steam purchased• Natural gas/diesel/propane used

Other information

What you’ll need:• Service records for HVAC system• Fleet vehicle records

What you’ll provide:• HVAC information• Vehicle fuel type and total usage• Total distance traveled by each vehicle

Waste

What you’ll need:• Waste management billing statements• Details of waste diversion in your facility• Details of any waste reduction projects

Water

What you’ll need:• Water billing statements• Details of water recycling/re-use in your facility• Details of any water reduction projects

About CDP

What is CDP?

• Independent, not-for-profit organization.

• Largest repository of corporate climate change information in the world.

• Companies can request that their suppliers report to CDP.

• In 2012, more than 6,000 suppliers worldwide were asked to respond.

Sample Supply Chain Program members

CDP reporting process

You’ll need the details of your:• Product(s) produced for Summit Brands • Responsible staff• Environmental projects• Sustainability goals• Climate risks & opportunities• Governance & engagement Enter CDP details under

the Supplier Info tab in the data collection tool.

CDP reporting process

Summit’s consulting partner, Renewable Choice, will assist you to:• Create your online CDP account.• Populate your CDP responses

already provided to Summit.• Provide support during the

reporting process if you have questions.

Contact

Kristin Eby

(800) 654-0791 ext. 229

keby@summitbrands.com