Effective Product StewardshipActions Should Directly SupportGreen Chemistry and MarketingPrograms

Edwin C. Bisinger Jr., PhD, DABTAkzoNobel

edwin.bisinger@akzonobel.com

Telling Today’s Brief Story

1. Who is AkzoNobel?2. Approach to Product Stewardship3. Automatic Dish Wash?4. Your questions/experiences/ comments5. The “Quiz”

Connecting The Key Drivers

ProductStewardship

GreenChemistry

Marketing

Transparency Collaboration

You should be able to…

• Focus a bit on how your company plans productstewardship strategies to align with greenchemistry & market needs

• Better understand how to focus on transparencyand collaboration

• Be encouraged to communicate your story tovarious levels of stakeholders

Who is AkzoNobel?

WE CREATE EVERYDAYESSENTIALS TO MAKEPEOPLE’S LIVES MORELIVEABLE AND INSPIRING

Who is AkzoNobel?

€14.945,600200+80+

#13

4

2015 Annual Report Data

End-user Segments

ConsumerGoods

% based on 2015 revenue

New build projectsMaintenance, renovation and repairBuilding products and components

Automotive OEM, parts and assemblyAutomotive repair

Marine and air transport

Consumer durablesConsumer packaged goods

Natural resource and energy industriesProcess industries

17%

Industrial

Building andInfrastructure

22%

44% 17%

Transportation

Doing things the right wayWe build successful partnershipswith our customers

We do what we say we will do

We strive to be the bestin everything we do, every day

We develop, share and use ourpersonal strengths to win as a team

Core principles:

SafetyIntegritySustainability

Customer Focus

Deliver on Commitments

Passion for Excellence

Winning Together

Who is AkzoNobel?

We’re working together with customersand suppliers to develop leadingsolutions that create more value fromfewer resources

Our Sustainability Strategy

Sustainablebusiness

Resourceefficiency

Capable,engaged people

Approach to ProductStewardship

Product StewardshipProgram Snapshot

• Product Stewardship (PS) is imbedded withinour company

• Director reports to CEO, Ton Buchner• PS Continuous Improvement Tool• Site SAQ for HSE and PS• Proactive substance management• Global training program

Product Stewardship outreach

GC3/RLC Green Chemistry Joint Statementhttp://www.greenchemistryandcommerce.org/

• GC3: Green Chemistry & Commerce Council– Accelerate Green Chemistry Solutions and increase

transparency in the value chain• RLC: Retailers Leadership Council

– Walmart, Target, Staples, Home Depot, CVShealth, BestBuy

• Chemical Company Contributors:– AkzoNobel, BASF, Chemours, Dow, Eastman

Sustainability Leadership

Ranked 10 consecutive years as a leader on theDow Jones Sustainability Index (DJSI)

2015: 1st Materials Industry Group leader2014: 1st Materials Industry Group leader2013: 1st Materials Industry Group leader2012: 1st Super Sector leader

2011-2006: Consistently ranked in top 3

Product StewardshipRecognition in 2015

• ACC Product Safety Award (USA)• CEFIC RC Product Stewardship Award (Europe)• AICM Merit Award for RC (China)

Automatic Dish Wash?

Overview: 10 Key Steps1. Plan: Transparency and Collaboration2. Identify customer need3. Develop Green Chemistry Solution4. Identify customer and regulatory driver(s)5. Deliver new, better solutions6. Publicly share results7. Work directly with U.S. EPA8. Publicly share results9. Work with NGO to share results10.Commercialize new, safer product

Transparency and Collaboration

• New product acceptance not a simpleproposition: specs, cost, R&D, regulatory, safety

• A plan and team approach were essential• Collaboration: to build long-term relationships• Transparency: to build trust• From the beginning, an atmosphere of

openness, and sharing with customer/regulatoryagency

Identify Customer Needs:Automatic Dish Wash?

• Detergent business important sector• Phosphates phase-out in auto dish wash

detergent products - eutrophication• Major, global Customer needed effective

replacements that were cost effective and safer• AkzoNobel Chelates business took the

challenge

Develop a Green Chemistry Solution

• Identify a phosphate-replacement that works• Must meet customer specifications/cost• New product should have an excellent safety

profile• Human safety and environmental safety• Sustainable/bio-based product

Green chemistry molecule

• Dissolvine GL = L-Glutamic acid, N,N-diaceticacid tetrasodium salt

• Starting amino acid made from thefermentation of U.S. grown corn

• Excellent safety profile• Effective chelating agent under variable

conditions of use• Contains no phosphorous

Upfront and regular technicalDiscussions with the Customer

• Business/R&D/technical/safety/regulatory• Early, direct connection between product

regulatory and safety groups• Sharing of all data and full reports• Open discussions on what the data mean• Agreement on human safety of new product

Identify Customer ProductSafety Driver and Deliver

• A major customer driver was biodegradation• Known that a classic chelate, EDTA, was not

considered biodegradable• New product not biodegradable in U.S. waters?• New product biodegradable in Europe• Joint preliminary testing in the lab

Develop New Solution toDeliver Safer Product

• Joint preliminary testing showed good probabilityof biodegradability (WWT simulation)

• Team approach with Dutch lab staff, customerscientists and CRO testing laboratory

• A new testing approach was linked tocommercialization, microbial adaptability andbiodegradability

Complete Technical Projectwith Customer to Satisfy Concern

• Before and after specific commercialization ofnew product, domestic WWT sites were sampledin the field in several states

• WWT Sludge samples were used to performbiodegradability tests in 2 labs

• After some months of use, new product wasshown to be biodegradable

Publicly Share Results withStakeholders in Value Chain

• Plan = be transparent about our new approach• We presented study results at SETAC• We presented results at ACS meeting• We presented study results at AOCS meeting• We proactively presented full study to U.S. EPA• EPA included results in its SETAC poster• Customer presentation at ECETOC

Publish Technical Articleto Disseminate New Test Results

• We published the study jointly with our customerin Environmental Science & Technology

• Please see this ACS publication• (Issue 49, pages 13314-13321. 2015)

Identify & Address Regulatory Issues

• In addition to meeting our customer’sexpectations, we had to also obtain governmentapprovals:

• U.S. TSCA PMN (several)• Canadian CEPA Notification• U.S. EPA FIFRA (inert ingredient)• U.S. EPA Design for the Environment (DfE)

Collaborate with EPA: DevelopNew Approach to Safety Testing

• U.S. EPA scientists voiced a possible humanhazard concern, based on NTA

• Working with EPA technical staff, we developeda new approach to assess the potential kidneyeffects of EDTA and NTA type chemicals

• The approach: short term study that monitoredkidney biomarkers in urine

• Minimized use of animals

Complete New Technical Studyto Satisfy EPA Safety Concerns

• Study protocol was agreed to• Specific kidney biomarker proteins were

identified and measured• Study carried out at multiple labs• Met with EPA scientists to review final results of

the study• EPA agreed the study results satisfied the

human hazard concern

Publicly present Test Resultsand Method to Stakeholders

• Poster presented at the Annual Meeting of theSociety of Toxicology (SOT)

• Poster presented at ACS Green ChemistryConference

• Plans to submit a manuscript for publication

Work with EDF to More BroadlyDisseminate our Safer Solution

• Great discussion with the EnvironmentalDefense Fund (EDF) to publish our work as acase study of safer chemical development

• Our new chelate product was highlighted in theEDF business blog

• Wonderful collaboration on the story

Building on the process:developing product applications

• Oilfield use – to replace toxic acids• Effective in FIFRA-regulated sanitizers• Food contact uses (?)• Feed additive uses (?)

Signs of Success!

• Focused on Collaboration and Transparency• Collaborated Directly with Customer and EPA• Established long-term trust with customer• Publicly presented AkzoNobel Approach and

Results• Effective, Safer product now in the Marketplace

Connecting The Key Drivers

ProductStewardship

GreenChemistry

Marketing

Transparency Collaboration

Thank You!

Product Stewardship+

Marketing+

Green Chemistry+

Transparency/CollaborationSAFER PRODUCT IN COMMERCE!

Your questions,experiences,comments

The “Quiz”

Key drivers

What are the five key drivers that were linked inthis story?

Linkage to marketing

How can product stewardship align with andsupport marketing in your company?

Transparency

Why is transparency important? Provide anexample from your company experience.

Collaboration

Is collaboration or transparency more important?

Collaboration

Do you have a communication plan (internal +external) for green chemistry projects?