2009 pUBlIc report

Transcription

2009 pUBlIc report

Responsibility =
Resilience
SC Johnson Public Report 2009
A Message from the Chairman and CEO
From Incremental to Exponential
Taking Responsibility to the Next Level
The world today faces many challenges. The global economic downturn is
having a tremendous impact on companies and economies. At the same time,
the planet’s population is closing in on seven billion people, with the resulting
food, shelter, energy and social needs having devastating consequences.
Some predictions indicate that at current consumption rates, we will simply
run out of natural resources in 40 years.
For companies like SC Johnson, this raises important choices. How do we
weather economic storms while doing what’s right for the environment? What
new sustainability approaches can we discover that would allow the faster
progress needed to head off a global resource crunch? How do we ensure
that we combine resilience with responsibility?
Incremental Isn’t Enough
Incremental progress is a start. SC Johnson learned this in the 1990s,
when we began targeting eco-efficiency. To minimize what consumers
sent to landfills and to reduce costs, we made our bottles and cans lighter.
We eliminated waste from our factories. We looked for energy efficiencies
around every corner. And we made good progress.
But after a while, a company gets to a point of diminishing returns if the
focus is simply incremental improvements in efficiency. So we looked for more
creative ways to make a significant difference, holistically across the business.
We looked for more impactful ways to reduce greenhouse gas emissions.
Today we power our largest global factory, Waxdale, with cogeneration
using methane gas from a local public landfill. At our factory in Michigan,
we’ve replaced half our annual purchase of coal-fired electricity with wind
power instead. In Indonesia, we now burn waste palm shells for fuel, requiring
“It’s about finding new solutions that are both progressive
and sustainable.”
2
“We are going after disruptive innovation — innovation
that helps us leap forward sustainably and successfully,
rather than incrementally.”
80 percent less diesel fuel than we did two years ago. As a result of initiatives
like these, we’ve cut greenhouse gas emissions from our worldwide factories
27 percent since 2000. And, each time we achieve our goals, we continue to
set new ones.
We also developed the Greenlist™ process in 2001 to choose better, more
sustainable chemicals for our products. This is a computerized, systemized
process and has allowed us to make tremendous progress with increasing
the number of ingredients we use that have a “Better” or “Best” profile,
while reducing lower-rated chemicals. Beyond meeting legal and regulatory
requirements, the Greenlist™ process helps us make products consumers
can feel even better about. This year we are moving forward with what is
the next logical progression of Greenlist™ — being transparent about the
ingredients we use.
But even these improvements likely aren’t enough. If we are going to help
lead the charge for sustainable consumption, we have to do more.
It’s About Disruptive Progress
As we look to the next decade, SC Johnson is taking exciting and new
approaches to embedding sustainability considerations into our products
and our processes. We are going after disruptive innovation — innovation that
helps us leap forward sustainably and successfully, rather than incrementally.
As a private company, we don’t share the details of these future efforts, but
I am excited about their potential.
We’re also engaging with base of the pyramid communities in the developing
world — particularly in the important public health area of malaria prevention.
We’re working toward economic,
health and social improvements
at the same time that we create
sustainable business models.
We also believe in championing
disruptive business leadership. Our
radical transparency for ingredients is
one example that we hope will propel
change throughout our industry.
And, It’s About Dialogue
Finally, we are helping drive the
dialogue on the improvements that
are needed. I’ve been honored this year
to participate in conferences from the
World Economic Forum, to FORTUNE
Brainstorm: Green, to the Cornell Global
Forum on Sustainable Enterprise. Each
has discussed the critical challenge of
sustainable consumption that is facing
the world, and each has left me hopeful
that we can indeed discover solutions.
It won’t be easy. But it is possible, if we continue the dialogue. At SC Johnson,
we are in our 18th year of publicly reporting our sustainable development
progress. We believe that sharing our sustainability targets and progress
against them is an important way to continue to deliver on our commitment
of responsibility.
Through this responsibility, we believe we’ll continue to ensure our company’s
resilience. For over 120 years, SC Johnson has demonstrated that doing what’s
right is also doing what’s good for business. It’s a commitment upheld by the
WWW.SCJOHNSON.COM
12,000 people of SC Johnson around the world. And it’s what makes me certain
that SC Johnson will still be thriving — sustainably — 120 years from now.
H. Fisk Johnson, Chairman and CEO
2009 PUBLIC REPORT
3
EXECUTIVE SUMMARY
WHAT YOU’LL FIND INSIDE
This 2009 SC Johnson Public Report is a
summary of our commitment to, and progress
toward, our sustainability objectives. We are
proud to share these stories that highlight how
we are working each and every day to benefit
people and the planet.
SINCE OUR
LAST REPORT
4
EXECUTIVE SUMMARY
> Progress starts with dialogue. That’s
why our 2008 Public Report featured
Q&As on sustainability with consumers.
This year, we’re continuing the conversation. First, on page 14, you’ll find a roundtable of opinions from four
non-government organizations that
are working to make the world better. We are very pleased to present the perspectives of Conservation International, Natural Resources Defense
Council, Environmental Defense Fund and Women’s Voices for the Earth. Then, turn to page 42, where global
research firm GlobeScan shares insights
gained over 10 years of interviews with
consumers, companies and thought leaders about sustainability.
ON THE WEB
SC Johnson is launching a brand new
web site, offering a
world of information
about who we are and why we do what
we do.
www.scjohnson.com
SC Johnson’s
2009 Public Report
Our company’s sustainability efforts target four key platform areas
where we believe we can make the biggest impact on quality of life, economic progress, our product mix and the planet. They are:
Who We Are: A Family Company
SUSTAINABILITY PLATFORMS
IMPROVING OUr Products
USING EARTH-RESPONSIBLE RAW MATERIALS: SC Johnson continues to increase our use of environmentally preferred raw materials through our patented Greenlist™ ingredient
selection process.
Reducing Resource Use
REDUCING ENERGY CONSUMPTION AND
GREENHOUSE GAS EMISSIONS: We work to
keep carbon dioxide out of the atmosphere by
reducing our fossil fuel use and greenhouse gas
emissions through a wide range of innovative
efforts at our global facilities.
Protecting Families
PREVENTING INSECT-BORNE DISEASES: As the leading global marketer of household insecticides
and repellents, we develop innovative products that help
protect people from mosquito-borne diseases, and we work to educate about disease prevention and make products accessible to more consumers.
Strengthening Communities
ADVANCING SOCIAL PROGRESS AND PUBLIC
HEALTH: We are committed to partnerships
that drive positive social change, to reaching
consumers who need and value quality products
and services, and to improving quality of life.
WWW.SCJOHNSON.COM
TABLE OF CONTENTS
Through five generations of family leadership, SC Johnson has made innovative, quality products while upholding high environmental standards. PAGE 6
Sustainability Perspectives
A roundtable of opinions from Conservation International, Natural Resources Defense Council, Environmental Defense
Fund and Women’s Voices for the Earth. PAGE 14
Improving Our Products
Along with our Greenlist™ ingredient selection process, our
bold ingredient communication and decision to have suppliers
eliminate phthalates help ensure we continue to make products
that our consumers can trust. PAGE 20
Reducing Resource Use
We have surpassed two of our four energy and emissions objectives for 2011 and continue working to lighten our impact on the world. PAGE 24
Protecting Families
We target a key public health issue by providing effective pest
control products and education about avoiding insect-borne
diseases. PAGE 28
Strengthening Communities
In the past 10 years, SC Johnson has given more than $180 million in contributions to improve quality of life. At the same
time, our base of the pyramid efforts are helping us reach
new consumers while driving local value. PAGE 34
Offering Great Workplaces
In 2009, SC Johnson again ranked among Best Companies to Work For in numerous countries. Protecting the safety and well-being of people is a top priority, and we act accordingly. PAGE 38
Corporate Responsibility: A Look Under the Hood
A Q&A with Chris Coulter, Vice President of GlobeScan Incorporated, about corporate responsibility trends over the past 10 years and into the future. PAGE 42
2009 PUBLIC REPORT
5
WHO WE ARE
Who is SC Johnson? First and foremost,
we’re a family company, and that means
we’re always thinking about the families
who use our products today, and the
future generations affected by the
choices we’re making for tomorrow.
Pictured is the Frank Lloyd Wright designed tower on SC Johnson’s headquarters campus.
SINCE OUR
LAST REPORT
> Introduced nearly 100 new products
that help make life cleaner and better
for families.
> Continued to be recognized as an
employer of choice by FORTUNE
magazine, Working Mother magazine,
AARP and DiversityInc.
> Surpassed both our U.S. and
worldwide greenhouse gas emissions reduction targets for 2011.
> Contributed to public well-being
through education to help prevent
insect-borne diseases, base of the
pyramid value creation and more.
ON THE WEB
Learn about SC Johnson’s company
history, products, accomplishments and commitment to doing what’s right.
www.scjohnson.com
6
WHO WE ARE
We are a Family Company
Begun in 1886 as a parquet flooring company, SC Johnson today is one of the world’s leading
manufacturers of household products. Still headquartered in Racine, Wisconsin, where the
company was founded, today it sells millions of
products to consumers in more than 110 countries.
It employs about 12,000 people globally and generates more than $8 billion in sales.
A Responsible Business
SC Johnson is led by the founder’s great-greatgrandson, Fisk Johnson. As a family company, we have always had the unique ability to focus on
the next generation, rather than the next earnings
report — a key advantage particularly in tough economic times. This means that we can and do
consistently uphold our core values, including innovation and quality, environmental and community leadership, and workplace excellence.
We do what’s right because it’s right. And while
that occasionally requires a greater investment, the goodwill earned endures for the long term.
Everywhere we operate around the world, SC Johnson is committed to respecting people and supporting universal human rights; adhering to all local laws and regulations regarding products
and how they’re made; reducing emissions, waste
and the use of fossil fuels; and contributing to our host communities through philanthropic contributions and local volunteerism.
A Great Place to Work
Our commitment to doing what’s right holds true
inside our walls, too. This past year, SC Johnson
was recognized as an employer of choice by numerous organizations, including FORTUNE magazine and the Great Place to Work Institute,
Hewitt Associates, Working Mother magazine,
AARP, the Human Rights Campaign Foundation
and DiversityInc.
WWW.SCJOHNSON.COM
SC Johnson
at a Glance
Since 1998, SC Johnson
has contributed
more than
$180,000,000
to efforts that include
community development;
education, family and youth;
and matching grants.
New Brands,
Here’s a quick look at SC Johnson.
Sales: More than $8 billion
Status: Privately held; led by Johnson family
for five generations
Employees: 12,000
Headquarters: Racine, Wisconsin
Products: Household consumer products
in four primary categories: Home Cleaning, Air Care, Pest Control and Home Storage
Markets: 110 countries
Great Opportunities
Operations: 70 countries
In 2008, SC Johnson’s business expanded
through the following ventures:
Primary Manufacturing Locations: Argentina,
Canada, China, India, Indonesia, Mexico, the
Netherlands, the United Kingdom and the United States
• Acquired The Caldrea Company, marketer of the Mrs. Meyer’s Clean Day® and
Caldrea® brands.
Web site: www.scjohnson.com
• Became majority shareholder of Fruits & Passion, a Quebec company that manufactures and sells body care and lifestyle products.
• Acquired majority ownership of the Chinese
company that makes Pest Rest® insect
control and other household products.
• Acquired the global intellectual property
rights to the Toilet Duck® brand,
which we had licensed for 25 years.
• Acquired Soy Basics, maker of soy candle brands including Beanpod
Candles®, Soy Scentsations®
and Soy Inspirations®.
2009 PUBLIC REPORT
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Making Life Cleaner, Easier and Better
Each day, SC Johnson products are used by millions of families
around the globe. In the United
States alone, our products are in 99 million homes. And that’s just one of the 110 countries where our products are sold.
Here are the primary categories in which we do business.*
8
Pest Control
Air Care
Home Storage
Home Cleaning
Products that help protect families
from pests that can carry diseases
such as malaria or dengue, from
brands including Raid®, OFF!®,
Baygon®, Autan® and AllOut®.
Products that offer benefits from relaxing fragrances to odor elimination, from the Glade® and Oust® brands.
Products that keep
food fresh and protect
families’ possessions,
from the Ziploc® and
Saran™ brands.
Products that help ensure a clean and hygienic home,
from brands including Pledge®,
Scrubbing Bubbles®, Mr. Muscle®,
Duck®, Windex® and Shout®.
WHO WE ARE
* In June 2009, SC Johnson
completed the divestiture of its Edge® and Skintimate®
shave businesses to Energizer
Holdings, Inc., moving SC Johnson out of the Personal Care category.
Measuring Our Progress, And Taking Our True Measure
Along with aggressive business objectives that we don’t share, due to being a private company, SC Johnson regularly sets environmental, economic
and social objectives, which are listed to the right.
Progress is tracked on a regular basis. In fact, the company’s top leadership team regularly reviews our results against sustainability objectives.
But who we are as a company is more than simply the actions we take. Our true measure is in the
values that guide SC Johnson’s success each and
every day. These values highlight six key areas:
• Family — acting with integrity, encouraging
open communication, and always demonstrating
an abiding concern and respect for people.
• Innovation — bringing insights, quality and
creativity to the continuous process of building and improving our trusted brands.
• Sustainability — ensuring that as we continue
to expand and grow, we simultaneously work
to do what’s right for our planet and the people
who live on it.
• Partnerships — building strong relationships with
our customers by constantly adding superior
value through collaboration and honest dealings.
• Strong brands — providing performance, quality
and value that earns the enduring trust of the
families who use our products.
• Leadership — embracing a winning spirit,
sharing our skills, demanding integrity, focusing
on priorities and helping make SC Johnson a great place to work.
ENVIRONMENTAL
ECONOMIC
SOCIAL
We have already surpassed
two of our 2011 environmental
objectives. Turn to pages 20
and 24 to learn more.
Along with achieving our private business objectives, we commit to being a responsible and productive member of the global economy. Turn to pages 34 and 38 to learn more.
We support and contribute to
social, cultural and educational
initiatives that enhance quality
of life in communities around
the world. Turn to pages 28 and 34 to learn more.
OBJECTIVES:
• Achieve continuous improvement in the raw materials score of our products as measured by our Greenlist™ process.
• Reduce combined air emissions, water effluents and solid waste 50 percent by 2011, versus the 2000
baseline.
• Reduce on an absolute basis U.S. greenhouse gas
emissions another 8 percent
by 2011, versus the 2005 baseline. Achieved in 2008!
• Reduce GHG emissions for all worldwide factories 12 percent by 2011, versus the 2000 baseline. Achieved
in 2008!
• Source 40 percent of global electricity from renewable energy.
OBJECTIVES:
• Continually grow by meeting consumer needs with innovative products of superior quality and value that enhance people’s lives.
• Contribute to the economies
of our host communities by providing employment and partnering with organizations to create growth and opportunity.
• Ensure that new invest-
ment fits constructively into the economic development progress of each host country and local community.
OBJECTIVES:
• Contribute to public health by helping minimize the
spread of insect-borne diseases. We do this by offering effective products,
making products more accessible to more people, and educating families about
how to protect themselves
from mosquitoes that can
carry diseases like malaria and dengue.
• Develop partnerships and programs that create
mutual value at the base of the economic pyramid and contribute to local quality of life.
• Support our local communi-
ties through philanthropy and employee volunteerism.
Our purpose is to make the world a better place by building superior brands and businesses that are a positive force in the
world’s economy. We’re committed to achieving this while simultaneously doing what’s right for employees, consumers,
customers, our communities and the environment.
WWW.SCJOHNSON.COM
2009 PUBLIC REPORT
9
Our Stakeholders
SC Johnson’s values are articulated in This We Believe — our statement of expectations for operations
around the world. This We Believe is much more than simply a written document — it is the essence
of who we are and how we operate. Failure to operate with integrity is not tolerated. This We Believe
explains SC Johnson’s values in relation to the groups of people to whom we are responsible and whose
trust we have to earn.
These are our key stakeholders as
set out by This We Believe. We interact
with these stakeholders every day.
In support of our beliefs, SC Johnson
regularly interacts with a variety of
other external stakeholders, including:
Employees
Customers and Partners
Customers, distributors, vendors,
suppliers, contractors and others with whom we work to achieve success.
We believe that the fundamental
vitality and strength of
our worldwide company
lies in our people.
Consumers
and Users
Industry
Associations
We believe in earning
the enduring goodwill
of consumers and
users of our products
and services.
Professional organizations and scientific communities with
whom we share best practices.
General Public
Policy Makers
We believe in being
a responsible leader
within the free market
economy.
Local, national and regional governments that establish policy, such as regulatory bodies.
Neighbors and Hosts
We believe in contributing to
the well-being of the countries
and communities where
we conduct business.
World Community
We believe in improving
international understanding.
10 WHO WE ARE
NGOs
Non-government organizations focusing on the environment, health and social progress.
Media
Both the formal news media and those participating in emerging online social media.
BOARD
OF DIRECTORS
H. Fisk Johnson, Ph.D.
Chairman of the Board; Chairman & CEO of S. C. Johnson & Son, Inc.
Michael W. Wright
Vice Chairman of the Board; Retired Chairman & CEO of SUPERVALU Inc.
Gerard J. Arpey
Chairman, President & CEO of AMR Corporation/American Airlines, Inc.
Abelardo E. Bru
Retired Vice Chairman of PepsiCo, Inc.
Robin R. Burns-McNeill
Chairman of Batallure Beauty, LLC; Former CEO of Victoria’s Secret Beauty Co., and Estee Lauder, Inc.
Helen P. Johnson-Leipold
Chairman & CEO of Johnson Outdoors Inc.; Chairman of Johnson Financial Group, Inc.
John Jeffry Louis
Chairman of Parson Capital Corporation
Steven S. Rogers
Gordon and Llura Gund Family Professor of Entrepreneurship, Kellogg School of Management
Christine Todd Whitman
President, Whitman Strategy Group; Former Governor of New Jersey; Former Administrator of the U.S. Environmental
Protection Agency
Robert B. Willumstad
Senior Advisor of Brysam Global Partners, LLC
Organized for Sustainability
in the
At SC Johnson, we don’t have a “green team” that works on sustainability in a vacuum. Rather, it’s a company-wide responsibility. Everyone shares the job of applying sustainable thinking, and more than
130 people are formally focused on it. Here’s how SC Johnson is organized for sustainability.
spotlight
Here are just a few of the ways in which SC Johnson has been recognized over the
past year:
• Safer Detergents Stewardship Initiative Award, from the U.S. Environmental Protection Agency
Chairman and CEO
• SC Johnson China named Walmart Supplier of the Year in the Non-Food Division
Executive Vice
President –
Worldwide
Corporate and
Environmental
Affairs
Worldwide
Government
Relations
Geographic
Presidents
Global Public
Affairs and
Communication
Worldwide
Community
Leadership
President –
Chief Technical
Officer
Senior Vice
President
and Chief
Administrative
Officer
Senior Vice
President –
Global Product
Supply
Global
Environmental and
Safety Actions
Global Safety
Assessment and
Regulatory Affairs
Chief Financial
Officer and
Finance Division
Worldwide
Safety/Health/
Environment/
Quality
Sustainable
Innovation
Responsible Reporting Practices
SC Johnson is in its 18th year of publicly reporting progress on its sustainability objectives. Our last report
was published on June 30, 2008. The 2009 report covers 2008 activity except where otherwise noted.
When we began reporting, there were no guidelines for doing so. We simply believed measuring our progress and sharing the results was the right thing to do. Today, we consider global best practices for
reporting, while maintaining confidential information as a private company.
Questions about this report should be directed to Kelly M. Semrau, Vice President — Global Public Affairs and Communication, at [email protected] or 262-260-2440. For further information regarding SC Johnson and its legacy of sustainability leadership, please visit www.scjohnson.com
WWW.SCJOHNSON.COM
• SC Johnson Mexico received the Socially Responsible Enterprise Award from the Mexican Center for Philanthropy (CEMEFI) for the ninth consec-
utive year
• 2009 Product of
the Year awards for Oust® Surface
Disinfectant & Air Sanitizer and OFF!® Family
Care Smooth & Dry aerosol repellent
• Named one of the “World’s Most Ethical Companies” for 2009 by Ethisphere
• Plus, employer of choice recognition in multiple countries. Please
turn to page 39 for a list.
2009 PUBLIC REPORT
11
12 Decades of Sustainability
Responsible Leadership in Every One
A FEW EXAMPLES FROM
OUR FIRST 11 decades …
1886-1899
1950-1959
Samuel C. Johnson
develops his first
product to help families
care for their homes.
SC Johnson introduces
water-based aerosols
with less environmental
impact and improved
safety and performance.
1900-1909
SC Johnson begins
offering paid vacations
for employees, establishing itself early as
a great place to work.
1910-1919
Profit sharing begins,
making SC Johnson one
of the first companies
in the U.S. to offer it.
1920-1929
Herbert F. Johnson, Sr.,
founds a community
fund that becomes
a precursor to United
Way of Racine County.
1930-1939
H.F. Johnson, Jr., leads
an expedition 15,000
miles to Brazil in search
of a sustainable source
of wax for our products.
1940-1949
Around 200 employees
serve in World War II;
jobs were held for
anyone who wanted
to return.
12 WHO WE ARE
•The Samuel C. Johnson
Chair in Sustainable
Global Enterprise is
endowed at Cornell
University.
The SC Johnson
Fund, Inc. completes
its first decade of
grants to support
education, youth,
family, community and
environmental efforts.
•We establish global
“Community Leadership
Guidelines”
for charitable
contributions
and employee
volunteerism
in all our subsidiary countries.
1970-1979
1960-1969
SC Johnson voluntarily
eliminates CFCs from
aerosol products,
three years before
the U.S. mandate.
1980-1989
We launch “People Who
Care,” which becomes
a model organization for
employee volunteerism.
1990-1999
Eco-efficiency efforts
help us ultimately
cut over 420 million
pounds of waste and
save $125 million.
Visit www.scjohnson.com
for more of our history.
•The American
•For the second time,
Chemical Society
SC Johnson Philippines
honors SC Johnson
wins the Dangal
with its Salute to
ng llog Pasig Award
Excellence award
for commitment
for encouraging the
to conserving and
professional development
rehabilitating the
of chemical technicians.
Pasig River.
•We begin partnering
in a Healthy Children,
Healthy Homes™ malaria
prevention
program
in South
Africa that
reaches
a million
people
by 2008.
•SC Johnson replaces
the Saran™ Original
plastic wrap formula
with a new formula that
eliminates 1.8 million
kg of polyvinylidene
chloride (PVDC).
•We become the first
•SC Johnson helps
consumer packaged
develop the Base of
goods manufacturer
the Pyramid Protocol™
to join the U.S. EPA’s
in which companies
Climate Leaders program
and communities build
to reduce greenhouse
value together.
gas emissions.
2000
2001
2002
2003
•Next Generation Now,
a not-for-profit child
development and family
support center, opens
in Racine, Wisconsin,
with support from the
SC Johnson Fund, Inc.
•SC Johnson Mexico
receives the Socially
Responsible Enterprise
Award from the
Mexican Center for
Philanthropy (CEMEFI);
it has won it each
year since.
•SC Johnson phases out
chlorine-based external packaging materials
worldwide,
including
bleached
paperboard and
bottles
made of
polyvinyl
chloride.
•We started up our first
cogeneration turbine
that uses public landfill
gas to power our largest
manufacturing site, while
cutting greenhouse
gas emissions.
•The company passes
$120 million in our
10-year rolling total
for philanthropic giving.
•SC Johnson develops
the first-of-its-kind
Greenlist™ ingredient
selection
process to
evaluate raw
materials
based on
their environmental
impact.
•Our “Dollars for Doers”
program launches,
awarding $250 to
not-for-profit organizations where SC Johnson
volunteers give 40
hours per year.
•SC Johnson receives
the first-ever Lifetime
Atmospheric Achievement Award from the
U.S. EPA, for protecting
both the ozone layer
and climate.
•SC Johnson is one of
the first inductees into
Working Mother magazine’s Hall of Fame for
companies named “100
Best” at least 15 times.
•SC Johnson becomes
the first major consumer
packaged goods company to partner with the
U.S. EPA’s Design for the
Environment program.
•We start up a second
cogeneration turbine,
becoming the first
consumer packaged
goods plant in the
Midwest to produce
nearly all our own
energy through cleanburning technologies.
•SC Johnson
sponsors field
testing of the
Base of the
Pyramid
Protocol™
to identify
and develop sustainable
new products and businesses in Nairobi, Kenya.
2004
2005
•In response to the
tsunami in Asia,
SC Johnson and
employees
contribute
more than
$500,000
in monetary
and product
donations.
•At the U.S. White
House, SC Johnson is
awarded the Ron Brown
Award for Corporate
Leadership, for commitment to responsible raw
material choices.
•SC Johnson Nigeria
receives the Gold Award
from the Lagos State
Ministry of Health and
the Manufacturers
Association of Nigeria’s
Best Kept Industrial
Premises Award.
WWW.SCJOHNSON.COM
•In recognition of our
Greenlist™ process,
SC Johnson is awarded
the Presidential
Green Chemistry
Challenge Award.
•The company voluntarily
begins working with
suppliers to eliminate
phthalates from the
fragrances they provide
•SC Johnson surpasses
for our products. We’ll be
industry guidelines by
out of phthalates by 2012.
•SC Johnson begins
launching an innovative
offering the use of our
and expansive ingredient
•A five-year deal to
patented Greenlist™
disclosure program
source nearly half
process to other
that includes sharing
the electricity for
companies royalty-free.
fragrance ingredients.
our Bay City,
Michigan, factory
•An SC Johnson truckload
•DiversityInc ranks
from wind power
utilization project allows
SC Johnson sixth among
helps us cut an
us to eliminate 1,882 tons
its top 10 companies for
additional 29,500
of GHGs, use 2,098 fewer
people with disabilities
tons of CO2
trucks and cut fuel use
and in the top 50 compaby 168,000 gallons.
nies for diversity.
annually.
2006
2007
•SC Johnson
achieves
Charter for
Sustainable
Cleaning
membership with the
International Association
for Soaps, Detergents
and Maintenance (AISE).
2008
2009
•The company is named
•For the second year in
•Our new Nature’s Source®
•Hispanic Enterprise
by AARP the best place
a row, SC Johnson is
magazine ranks
line of cleaners
to work in America for
named among the top
SC Johnson among
— for families
those over 50, as well
10 companies to work for
the top 50 companies
who prefer
as being honored for the
in America by FORTUNE
for supplier diversity.
products with
19th year as a 100 Best
magazine. We were top
more natural
•SC Johnson receives
Company for Working
10 again in 2007.
ingredients —
the U.S. EPA’s Safer
Mothers.
hits shelves
•Using our Greenlist™
•SC Johnson is among
Detergents Stewardship
throughout
•We launch a two-region
process, by 2006 we
the first to surpass its
Initiative award for volunthe United
malaria awareness pilot
nearly triple our use
Climate Leaders goals,
tarily committing to use
States.
with the Ghana Communi- safer surfactants in our
of “Better” and “Best”
reducing our greenhouse
ty Health Nurses, training
rated ingredients, and
gas emissions by 24
household products.
•We achieve our 2011
200 people and offering
cut our already-minimal
percent per pound of
greenhouse gas emission
educational sessions that
use of low-rated ingrediproduct, thanks in part
reduction goals for both
reach over 8,000 people.
ents to only 1.5 percent.
to the addition of our
total worldwide factories
second cogeneration
and for our U.S. operations.
turbine.
2009 PUBLIC REPORT 13
Sustainability Perspectives
Where We Are, Where We’re Going
A Roundtable Interview with Four NGO Thought Leaders
At SC Johnson, we believe progress begins with dialogue. That’s why for this year’s Public Report, we asked thought
leaders from four respected non-government organizations to share their perspectives on sustainability.
The result was interviews with Fred
Krupp, President of Environmental
Defense Fund (EDF); Linda Greer,
Director, Health and Environment
Program, Natural Resources
Defense Council (NRDC); Glenn
Prickett, Executive Director, Center
for Environmental Leadership in
Business, Conservation International
(CI); and Erin Thompson Switalski,
Acting Executive Director of
Q
As an organization, what keeps you up
at night? What do you consider to be THE
most pressing issue facing the world today?
that go into the myriad of products made within
their borders, yet multi-national corporations
increasingly locate their supply chains there anyway.
Global warming. It is the great challenge
of our time — the “moral challenge of our
generation,” UN Secretary General Ban Ki-Moon
called it — and the latest data shows that warming
is occurring faster than even the most pessimistic
forecasts of a year ago.
Most governments in the developing world are
decades away from having the staff or expertise
to address pollution within their borders, but
Planet Earth cannot wait this long for relief; many
changes it will experience from the impacts of
poorly controlled manufacturing are imminent
and irreversible.
EDF
For example, the Greenland Ice Sheet is melting
at a rate faster than was predicted and could begin
to disintegrate and significantly raise sea levels.
The world is already nearly 1°C warmer today
than it was 100 years ago, with about half of the
warming occurring over the past few decades.
There truly is no time to lose.
Women’s Voices for the Earth
(WVE). We hope that by sharing
their thoughts, we can contribute
to the important global dialogue
about securing the future for
future generations.
14 NGO ROUNDTABLE DISCUSSION
Over the past decade, industry has
moved much of its manufacturing to
China, India and other countries in the developing
world. These countries do not have the capacity
either to monitor or restrict the pollution associated
with manufacturing or to oversee the ingredients
NRDC
“The latest data shows that [global] warming is occurring faster than even the most
pessimistic forecasts of a year ago.” – EDF
Climate change is the most pressing
global threat. We’re already seeing
changes in weather patterns, ocean chemistry,
sea levels, disease ranges, and water availability,
as well as more intense storms and droughts. Every
person on Earth is affected by climate change,
particularly the poor, who often depend directly
on nature for the basic needs of daily life.
CI
Climate change is a symptom of a deeper problem
— that we are living beyond our means ecologically.
We also see the impact of this in the decline of fish
stocks, freshwater supplies, and healthy ecosystems
in all parts of the world.
A growing body of research shows
that chemicals from everyday products
are entering our bodies, unannounced and
unwelcomed. Some of these chemicals are linked
WVE
to serious health problems like asthma, infertility,
birth defects and even cancer.
With the ubiquitous nature of product use in our
lives, I worry about the cumulative impact of these
chemicals on our bodies and on our environment.
What happens to our air, our water and ultimately
our health when we are exposed to mixtures
of these chemicals over a lifetime needs to be
addressed by companies.
Q
What role do you see companies such
as SC Johnson playing in addressing
these issues?
If we’re going to succeed in restoring
the balance between economic growth
and a healthy environment, the private sector
must be part of the solution. It will be the best
CI
WWW.SCJOHNSON.COM
source of innovation on how we can become
much more efficient in our use of energy, water,
and other natural resources.
Fortunately, leaders like SC Johnson are already
rising to the challenge. Greenlist™ is a model for
how companies can use the power of their supply
chains to promote sustainability.
The work you are doing at the “base of the
pyramid” to provide environmentally sustainable,
life-improving products to poor people in developing countries is absolutely vital.
“Every person on Earth is affected by
climate change, particularly the poor,
who often depend directly on nature for
the basic needs of daily life.” – CI
We need to figure out how to lift billions of people
out of poverty, but with a different economic
model than the resource-intensive, polluting one
that the United States and other industrialized
countries followed.
SC Johnson can be a world leader in
“green chemistry,” which means using the
safest and cleanest ingredients possible in all their
products. They have certainly taken steps towards
this by implementing the Greenlist™ program.
WVE
Now, SC Johnson can prove that healthy
products are profitable and good for people
and the environment.
Furthermore, they can be an industry leader
by encouraging other companies to follow suit
and produce safe, healthy products.
A great company leads by example.
Today, that means finding ways to
operate less wastefully, more sustainably. And
it can be done.
EDF
In 1990, for example, McDonald’s joined EDF to
form a waste-reduction task force, a partnership
that changed the way the fast-food giant produced
and recycled its packaging. It also changed the
operating standards of the entire fast-food industry,
saving energy and hundreds of millions of pounds
of material.
Since then, EDF has worked with market leaders
including DuPont, KKR, Walmart and others
to unleash environmental innovation while
demonstrating that good environmental strategy
is good business strategy.
Corporations can also help fight global warming
by joining together to force legislative action on
the issue. For example, the United States Climate
Action Partnership, a coalition of industry and
nonprofit groups, is among the most powerful
voices on Capitol Hill fighting for passage of the
landmark Waxman-Markey bill on climate change,
which would place a declining cap our nation’s
greenhouse gas emissions.
SC Johnson and other socially
responsible companies can play a very
productive role in tightly overseeing the factories
in its supply chain around the world, rewarding
NRDC
“At Women’s Voices for the Earth, we see
[the top priority as] making safe products
— putting resources into the development
of green, clean chemicals.” – WVE
only those factories that meet its own strict environmental performance criteria with its business.
Because the footprint of its operation goes up
into such diverse sectors as mining and chemical
feedstock manufacturing, it can have a very broad
positive impact on environmental matters abroad
with aggressive and ambitious environmental
requirements all the way up its supply chain.
Through workshops and other educational forums,
it can also help build government capacity on
environmental protection matters in the developing
countries where its manufacturing or its sourcing
of raw/intermediate materials is based.
Q
All organizations have to prioritize, especially
given the current economic crisis. What
do you think should be companies’ top priorities
as it relates to sustainable development?
First, decide where you can have
the greatest impact. Lay your carbon
footprint over all your processes, product lines
and strategies. Where in that mix does your
business tread heaviest on the environment?
Concentrate your efforts there.
EDF
Second, make your good intentions real. Set
clear, aggressive and measurable goals for
reducing environmental impacts and identifying
new opportunities.
Then, unleash the innovation of your workers,
suppliers and others by rewarding contributions
to the goals you have set.
One excellent example is Intel, which has made
the environment everybody’s business by tying
employee compensation — from the mailroom
“Opportunities to reduce energy, water
and materials usage through increased
process efficiencies should be emphasized, because they will reduce impact
while saving money.” – NRDC
to the C-Suite — to the company’s environmental
results. This year, the size of the Intel bonus will
depend on performance on three environmental
metrics — the energy efficiency of Intel products,
the company’s carbon footprint and its reputation
for environmental management.
At Women’s Voices for the Earth, we
see the top priorities as 1. Making safe
products — putting resources into the development
of green, clean chemicals. 2. Shifting away from
petroleum-based containers and chemicals.
3. Energy conservation — this will save money
and help the earth.
WVE
Companies should prioritize reducing
their carbon footprint, reducing their
impact on water supplies (water consumption
and water quality), and increasing reliance on
green chemistry to develop safe and renewable
chemicals for their manufacturing feedstocks.
NRDC
Opportunities to reduce energy, water and
materials usage through increased process
efficiencies should be emphasized, because
they will reduce impact while saving money.
Since every company is unique, every
company’s priorities are different.
There are some common elements, however.
CI
We challenge all of our partners to push as hard
as they can to shrink the environmental footprint
of their operations by reducing waste, energy use,
water use and other natural resource inputs. This
generates immediate savings that go straight to
the bottom line.
The more important and strategic choices lie in
figuring out how the company can help its customers and suppliers improve their environmental
performance. This is where companies will find
the biggest wins for their businesses and for the
environment over time.
Q
What emerging issues are you watching
that you believe companies will need to
deal with 10 to 20 years from now?
NRDC Nanotechnology is an important emerging issue that companies will likely have
to address in the near future. Many of these small
molecules could cause asbestos-like harm to cells
in our bodies, but regulators have not required
safety testing prior to marketing.
The genie is in many ways out of the bottle, and
there may be very negative effects on health
and the environment that become apparent in
the coming decade. In addition, companies should
be developing and promoting various adaptation
strategies to operate in a warmer planet.
“We challenge all of our partners to push
as hard as they can to shrink the environmental footprint of their operations by
reducing waste, energy use, water use
and other natural resource inputs.” – CI
WWW.SCJOHNSON.COM
In terms of sustainability, I think
companies are really going to have
to assess the impacts of the entire life cycle of
a product they are making.
WVE
In the production stage, companies need to
think in terms of what the impact of production
is to the water and air surrounding the manufacturing plant and to the health of the workers
creating the products. What is the environmental
impact of creating a bottle or another type
of container?
On the consumer side, what is the impact of
using that product? Are toxic fumes expelled
during use? Does the product create byproducts,
like formaldehyde or CO2 emissions that weren’t
intentionally added?
Could the chemicals in the product harm the
health of humans or the environment? And what
is the impact at the end of life? What happens to
the aerosol spray can or the plastic bottle when
it hits the landfill or the incinerator?
Companies will have to put this full life-cycle lens
into their thinking and they’ll have to be accountable to their consumers for all of this.
We see big issues looming at the
intersection of food security, energy
security, water availability and climate change.
Agricultural output needs to double by 2050
to meet rising living standards of a growing
population. Biofuels as a substitute for fossil
fuels will add more demand for land and water.
CI
Meeting these needs without compromising
the health of people and the environment will
be a major challenge — even more so in the face
of climate change.
“Water is becoming a major problem.
One person in five today lacks access
to safe drinking water, and the situation
is growing worse in the face of global
warming and population growth.” – EDF
Innovations that deliver more crops on less land
with less water will be essential. Critical ecosystems
need to be identified and protected. Businesses —
especially those involved with food and consumer
products — will see impacts on their supply chains.
Leadership companies are addressing these issues
with their suppliers and working with groups like CI
to promote sustainable agriculture and ecosystem
conservation in Brazil, Indonesia and other major
agricultural producing regions.
Water is becoming a major problem. One
person in five today lacks access to safe
drinking water, and the situation is growing worse in
the face of global warming and population growth.
Water, in fact, has the potential to become the new
oil — a critical resource whose scarcity creates the
potential for conflict wherever it is found.
EDF
And just as with oil, industries that require lots of
water, from chip makers to oil drillers to farmers,
could become vulnerable — especially if they use
water profligately.
Geoengineering, manipulating global systems to
mitigate warming, is another emerging issue. For
example, some have proposed using high-flying
aircraft, artillery or balloons to inject sulfur particles
into the upper atmosphere to reflect sunlight away
from the Earth and offset the warming effect of
greenhouse gases.
But could this backfire? High-altitude injection
of sulfur, some scientists suggest, might trigger
changes in the global cycle of water evaporation
and precipitation, suddenly altering whole
ecosystems.
Q
If you could give one piece of advice to
companies, what would it be?
I would urge companies to adopt
the “precautionary principle” into
everyday practice. This essentially means “better
safe than sorry” when evaluating the impacts of
chemicals used in products. If there is evidence
to suggest that a chemical might cause harm,
avoid it. Look for a safer alternative and use
it instead.
WVE
I would also encourage companies to seek input
from non-governmental organizations (NGOs).
NGOs work to understand the critical issues our
world is facing and to educate the public about
solutions. They can be a great resource on many
tough issues and hold a valuable perspective.
Figure out how you can help your
customers prosper and create value
in a carbon- and resource-constrained future. In
an economic downturn, the tendency will be to
focus on immediate opportunities to save money
through resource efficiency and waste reduction.
CI
“Companies should judge themselves by
pounds of pollutants/toxic ingredients
reduced, not by success in branding
themselves as sustainable.” – NRDC
“NGOs work to understand the critical
issues our world is facing and to educate
the public about solutions. They can be
a great resource on many tough issues
and hold a valuable perspective.” – WVE
This is important, but real leaders will use this crisis
as an opportunity to re-position their businesses for
the future. Environmental issues aren’t going away,
they are only becoming more serious.
Companies that take a leadership position on
sustainability now are going to be that much
stronger in the future.
My strongest advice is to reduce the
“talk” and “walk the walk.” There are far
too many companies whose major contribution to
the sustainability debate is to develop an attractive
annual Corporate Social Responsibility Report for
its shareholders and the general public.
NRDC
These efforts breed cynicism about corporate
motivations unless they are accompanied by actual
activities to voluntarily go beyond government
requirements to reduce impact.
Companies should be undertaking lower profile
but much more important activities and sustainability policies in their factories here and around
the world, benchmarking performance, implementing monitoring and verification strategies to assess
impact, and rewarding best-practice factories that
operate at global standards.
Such an undertaking is a tremendous amount of
work but is the key ingredient for actually making a
difference. Companies should judge themselves by
pounds of pollutants/toxic ingredients reduced, not
by success in branding themselves as sustainable.
Get ahead of the curve by encouraging
and rewarding environmental innovation
from within. By becoming a leader in protecting the
environment, you’ll profit from it — morally, ethically
and financially.
EDF
Q
If you could make one request of consumers
and the public, what would it be?
Learn about the issues and take
action! We have one home, Planet Earth,
and every one of us can do something to make
a difference.
CI
Simple steps like switching to compact fluorescent
light bulbs that save energy or donating $15 to
protect an acre of tropical forest really add up.
We also need to make sure our elected leaders
are facing the issues and making the hard choices
to solve them. Being an informed and politically
active citizen is probably the biggest difference any
of us can make.
My request would be for consumers —
and especially women since they are
such a powerful consumer group — to use their
voice. We all know that we vote with our wallets,
but sometimes that’s not enough.
WVE
“We have one home, Planet Earth, and
every one of us can do something to make
a difference.” – CI
“In the end, an active, aware people
is the best guarantor of a greener,
healthier world. If you want change,
work for it.” – EDF
ON THE WEB
FIND THEM ONLINE
Learn more about the NGOs that shared their opinions in this piece:
Tell companies what you want. Call them. Talk
to them. Contrary to what you might think, they
are listening. Speaking up will help drive the
innovation we need to create a healthier, more
sustainable world.
Customers and the public should
reach out more actively, individually,
to their government and to the companies that
supply them with the products they buy, to insist
on safer, cleaner products and manufacturing.
NRDC
They should demand information that they can
use to make choices about the products they buy,
while at the same time pressing the government
to become a more effective “cop on the beat”
and keep unsafe products off the shelves.
www.conservation.org
www.edf.org
www.nrdc.org
www.womenandenvironment.org
Get involved in the fight for a clean,
sustainable world. Today, 125 million
Americans breathe unhealthy air. Most of the
world’s ocean fisheries are in trouble. Human
society and the natural environment could
experience catastrophic change due to
global warming.
EDF
Ultimately, politicians and corporate
executives listen to those who put them in
power, buy their products and pay their salaries.
That’s us. In the end, an active, aware people
is the best guarantor of a greener, healthier
world. If you want change, work for it.
WWW.SCJOHNSON.COM
IMPROVING
OUR PRODUCTS
In 1976, we led our industry by eliminating
CFCs from our aerosols. Product stewardship
is a commitment that continues to this day,
including several bold moves this year that
help consumers keep feeling good every
time they reach for an SC Johnson product.
SINCE OUR
LAST REPORT
> Launched a broad and innovative
ingredient disclosure initiative to voluntarily share what’s in our products.
> Began working with our suppliers
to have them phase out phthalates
from the fragrances they supply for SC Johnson products.
20 IMPROVING OUR PRODUCTS
> Introduced our new Nature’s Source®
line of products for consumers who
prefer more natural ingredients.
> Continued to improve the environ-
mental footprint of our products using
our patented Greenlist™ ingredient
selection process.
ON THE WEB
Learn about SC Johnson’s Greenlist™
process: how it works
and why we make it
available to other companies.
www.scjohnson.com
TAKING TRANSPARENCY TO A NEW LEVEL
In March, SC Johnson announced a broad ingredient communication program that surpasses
industry guidelines for listing product ingredients
and further extends the company’s legacy of doing
what’s right for people and the planet.
Chairman and CEO Fisk Johnson explained when
making the announcement, “Consumers want
transparency, and we’re committed to providing it.
First and foremost, that means information that’s
clear, always honest and easy to understand. And
second, it means making that information available
through a variety of readily accessible channels.”
Extending Our Responsibility
SC Johnson’s program is a logical extension of SC Johnson’s patented Greenlist™ ingredient
selection process, which since 2001 has been
enabling the company’s scientists to select better
ingredients for the environment and human health,
and to phase out less preferred ingredients.
This program builds on an industry right-to-know
initiative announced in late 2008. In that voluntary
effort, companies would list ingredients — excluding dyes, fragrances and preservatives — online, on
product labels, via toll-free number or using some
other non-electronic means.
Supporting Right-to-Know
SC Johnson supported this move by the industry,
and wanted to go even further, by:
• Listing all ingredients for U.S. home cleaning and air care products — an unprecedented move that includes dyes, preservatives and
fragrance ingredients.
• Making information available in three different ways: a dedicated web site (www.whatsinsidescjohnson.com), WWW.SCJOHNSON.COM
a toll-free number and on product labels that will be phased in.
• Defining ingredients and including an explanation of their purpose in the product.
SC Johnson’s Greenlist™ process
helps us pick
better ingredients
by providing ratings for
19 categories
oF materials from
dyes to solvents.
• Communicating in English as well as Spanish,
which will be included on the web site.
• Expanding our initiative to include both the United States and Canada.
SC Johnson will be rolling out its program from now through January 2012. Continually
increasing information will be available on labels,
www.whatsinsidescjohnson.com and through our consumer hotline.
“Our ingredient web site aims to really
connect the dots, giving details not just
about what ingredients are used, but also
what their functions are in our products
and other product information.”
Chairman and CEO Fisk Johnson when announcing www.whatsinsidescjohnson.com
Ingredient Leadership:
Phasing Out Phthalates
Since summer 2008, SC Johnson has been working with its suppliers to have them phase out phthalates from fragrances they supply for our products. This move was designed to continue earning our consumers’ trust, and was a natural extension of our Greenlist™ process.
The particular phthalate that raised concern — DEP — has been extensively researched and deemed safe by various scientific bodies. But the larger class of substances in the phthalate family has been
more hotly debated and we recognize that sometimes whole categories of substances can erroneously
be seen as concerning despite individual items being safe.
DEP has been included in some of the fragrances that SC Johnson sources for its products, and used
in very small amounts. It is the only phthalate that was used in the fragrances in SC Johnson home
cleaning and air care products.
Working with its partners in the supply chain, the company developed a plan to eliminate the use of any phthalates in the fragrances supplied to SC Johnson — and the plan is now well under way, with new and reformulated products being produced without phthalates. We expect to be out of phthalates completely within the timeframe of our ingredient disclosure plan.
NEWS BRIEFS — Progress AROUND THE WORLD
A Closer Look with a Clearer Web Site
While some companies have chosen to share product ingredients with minimal detail, SC Johnson’s new ingredient communication program includes a dedicated web site designed not merely to offer data,
but to provide context and explanation as well.
The site launched with information about several SC Johnson products, including Windex® Outdoor,
Shout® Wipes, Glade® aerosol, the company’s new Nature’s Source® cleaning products and more.
These items were included as examples of what the site will provide when fully populated by January of 2012. Products will be added on a rolling basis.
Here’s a quick tour of the new site …
Making Products More Affordable, and More Sustainable
SC Johnson has long believed that good environmental improvements are good business,
too. The proof is in several recent new products.
In the new SC Johnson site, users
can search for products by brand,
by product use or by ingredient.
Each ingredient can be explored by
clicking on it within the product ingredient listing, or looking it up in the A-to-Z list provided on the web site.
To develop low-cost products for developing markets, we made choices in terms of product formulas and packaging. From a formula standpoint, we’ve found ways to reformulate for effective
performance with fewer, more economical ingredients that still meet our standards.
By using less outer packaging — for example, putting product in a pouch instead of a bottle — we cut costs while also eliminating waste. Cheaper delivery systems, such as a spray cap instead of triggers, also reduce both the cost and product footprint.
With these types of improvements, our Mr. Muscle®
kitchen cleaner in China, for example, is now affordable to more consumers than ever before. It uses 42 percent less surfactant and 25 percent
less solvent than the original formula.
Ingredients can be viewed using the
“Ingredients” tab for simple, consumerunderstandable descriptions …
22 IMPROVING OUR PRODUCTS
… or the “Ingredient Detail”
tab for the chemical names using International
Nomenclature of Cosmetic Ingredients terms.
For the initial purchase, consumers can buy a bottle with a spray cap instead of a trigger, meaning it has 37 percent less packaging than a trigger bottle. Then consumers can refill with a pouch that has 75 percent less packaging and costs a third less than the bottle.
A MATTER OF POLICY
Recognition for
Safer Surfactants
In December 2008, SC Johnson was recognized with the U.S. EPA’s Safer Detergents Stewardship Initiative (SDSI) Award, which honors companies committed to voluntarily using safer surfactants in products. For SC Johnson, these choices stem from our Greenlist™ process for classifying and
selecting better raw materials including surfactants and 19 other categories of ingredients, such as dyes and solvents. Chairman and CEO Fisk Johnson noted in response to the award, “At SC Johnson,
we take a holistic and scientific approach to making our products more environmentally responsible.
We’re honored to be cited for our commitment to using safer surfactants in our products and working
with our suppliers to strive to attain the highest environmental standards, while maintaining the performance that consumers expect from SC Johnson products.”
Continuing Our Greenlist™ Progress
SC Johnson continues to employ our patented Greenlist™
process to classify raw materials considered for use in our
products according to their impact on the environment and human health. Our goal is that beyond meeting legal
and regulatory requirements, we increase year-on-year the percentage of our raw materials that have reduced impacts on the environment and human health. We started at 4 percent in 2001; today we’re at 15 percent. In 2007/08,
the use of “Better” and “Best” ingredients increased from 36 percent to 47 percent of total materials, with a corresponding decrease in less preferred materials. The charts
at right provide a look at SC Johnson’s total environmental
classification (EC) score results in our baseline year and the last fiscal year, using the Greenlist™ process.
A Historical
Correction
WWW.SCJOHNSON.COM
10%
0 rated materials
4%
best
At SC Johnson, we believe it’s not right to make
environmental claims simply for marketing — they must be supported with rigorous science
and standards. So we have internal standards
for terms such as “biodegradable,” “recycledcontent,” “natural” and more in our advertising
and product labels. Along with helping ensure
consistency in how we talk about our products
across categories — from bathroom cleaners
to furniture polishes to air fresheners — these
guidelines also help ensure that our claims are
science-based and data-driven.
2%
14%
15%
0 rated materials
best
better
Baseline
2000/01
Results for
2007/08
32%
better
73%
acceptable
(kg of raw material by EC, 5 base categories)
51%
acceptable
(kg of raw material by EC, 37 chemical and 12 component material types)
At SC Johnson, we believe it’s not enough to take improvements on faith. We periodically go back and audit our Greenlist™ process
and other results to ensure they’re accurate. This year, we found a needed correction. Since 2005, SC Johnson has reported our baseline 2000/01 breakdown as 4 percent “Best,” 8 percent “Better,” 71 percent “Acceptable” and 17 percent 0-rated materials. In our latest audit, however, we determined that these data contained errors. The correct breakdown based on the actual kilograms of
materials used included fewer 0-rated materials than we’d been reporting. The baseline 2000/01 chart shown above accurately reflects
these corrected data, which are 4 percent “Best,” 14 percent “Better,” 73 percent “Acceptable” and 10 percent 0-rated materials.
REDUCING
RESOURCE USE
Three years into our 2006-2011 strategy
for conserving critical resources, we’ve
surpassed two of four objectives and are
on track to achieve those that remain.
From reducing greenhouse gas emissions
to using renewable energy, we continually
lighten our impact on the world.
SINCE OUR
LAST REPORT
> Surpassed our 2011 global
manufacturing greenhouse gas emissions reduction target by 15 percentage points, achieving a total
reduction of 27 percent versus our
goal of 12 percent.
> Beat our 2011 target for reducing
U.S. greenhouse gas emissions by 24 REDUCING RESOURCE USE
9 percentage points, achieving a total reduction of 17 percent versus
our goal of 8 percent.
> Continued to make progress on
our renewable energy target and completed the new wind turbine that will power our largest European plant.
ON THE WEB
Learn how SC Johnson is generating its own
renewable energy with
landfill gas in the United
States and waste palm
shells in Indonesia.
www.scjohnson.com
LEANING FORWARD, EVEN IN LEAN TIMES
SC Johnson achieved a key milestone this past year — surpassing two of our four 2011 strategies for
conserving critical resources in 2008. We achieved
a 27 percent reduction in global manufacturing
greenhouse gas emissions since 2000 — versus a
target of 12 percent. We also achieved a 17 percent
reduction in U.S. greenhouse gas emissions since
2005 — versus a target of 8 percent.
You might find this surprising in a year when many businesses were reprioritizing to bolster their financials amid the global economic crisis. But at SC Johnson, we believe that challenging
times are actually the most important time to focus on sustainability — because we know from
experience that responsibility and profitability go hand in hand.
palm shells, which are the remaining waste of the palm oil industry. While the shells, as a waste product, are often burned under uncontrolled conditions, our use of them as a fuel source transfers them into the value chain with minimal
environmental impact.
Importantly, the system cuts both greenhouse gas emissions and costs. In fact, with its unique
burner/boiler, the Medan factory used 80 percent
less diesel fuel in 2008 than it did in 2006 — a savings of $1.4 million per year.
Consider the innovative burner/boiler system that
enables our Medan, Indonesia factory to run on
Taking Our Measure
Here’s a look at SC Johnson’s 2008 energy consumption by source.
Indirect energy consumption by source:
4% 1%
6%
34%
gasoline LPG
purchased
renewable
electricity
palm shells
18%
landfill gas
3%
kerosene
63%
4%
fuel oil
natural gas
1%
diesel
WWW.SCJOHNSON.COM
energy
generated OR
PURCHASED in 2008
118,784,000
kilowatt hourS.
Gathering Gusts of
Green Energy
SC Johnson has built an 80-meter-tall wind turbine to help power our largest European
manufacturing facility, located in Mijdrecht, The Netherlands. It is the first wind turbine
owned and operated by SC Johnson, and the first of its kind in the province of Utrecht.
Responsibility + Profitability
Direct energy consumption by source:
Renewable
65%
purchased
electricity
1%
purchased
steam
The project began operating in July and is expected to produce about 6.1 million kilowatt
hours of electricity a year — or about 66 percent of the energy required by Europlant annually. About 45 percent of this demand will actually be fulfilled by the wind turbine, with the remaining energy being sold to the local grid for community use.
The turbine is expected to eliminate about 3,900 tons of carbon dioxide annually for Europlant, as well as allowing the facility to use 655,000 kilograms less coal.
This extends SC Johnson’s existing commitment to wind power. In 2008, we agreed to
source 46 percent of the electricity for our Bay City, Michigan, factory from wind energy, replacing almost half the factory’s annual
purchase of coal-fired electricity with a clean,
renewable source.
Shipping the Smart Way
This past year, SC Johnson continued to participate in the SmartWay
Transport Partnership, a voluntary, collaborative partnership with the U.S. Environmental Protection Agency. Partners in the program improve the environmental performance of their freight delivery operations, and in turn get access to tools
and strategies to improve fuel efficiency and reduce the environmental footprint of their freight operations
— such as intermodal shipping, warehouse improvements and idle reduction. In the past year, SC Johnson
implemented anti-idling policies at its U.S. factories and distribution centers, increased intermodal shipping
for the fourth consecutive year and added a requirement of SmartWay1 participation to its carrier-selection
process. By 2008, more than 78 percent of SC Johnson carriers were SmartWay1 partners.
1
SmartWay is a trademark of the U.S. Environmental Protection Agency.
1
SC Johnson Intermodal Shipping
Miles shipped via intermodal transport.
17,505,555
2005
20,278,171
2006
22,245,437
2007
22,853,654
2008
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
Small Changes Making Big Differences
In addition to large projects like launching wind power or using biofuel, we’ve found that we can make significant advances with smaller changes, too. In fact, energy efficiency and energy conservation were significant contributors to our achievement in meeting our 2011 global greenhouse gas emission-reduction target two years early.
Among the small but smart choices that helped make an impact, SC Johnson installed more efficient air compressors at factories in Bay City, Michigan; Cairo, Egypt; and Brantford, Canada. We put in more efficient chillers in Michigan and on our headquarters campus. Also, energy-
efficient lighting was improved in several U.S. locations as well as our factory in Frimley, England.
26 REDUCING RESOURCE USE
Cutting-Edge Distribution
in a Cutting-Edge Facility
This past year, SC Johnson began leasing a
432,000-square-foot distribution center in Wisconsin with a variety of responsible features. From energy-efficient lighting with sensors
throughout the facility, to a water-conserving toilet system, to a slightly pressurized atmosphere
that limits the flow of cold air into the building
through the dock doors, the facility delivers on the promise of environmental design.
Notably, the office area of the building is heated and cooled using geothermal energy from 300-foot-deep wells in the parking lot. The subsurface soil has a stable temperature (50-60°F) that is warmer than surface air in the
winter and is cooler than the air in the summer. This temperature difference is used to produce
energy. Other energy-saving features include vents
that recirculate 80 percent of the warehouse air in the winter so less air has to be heated during the day, and a special system that can pre-cool the facility for daytime operations in the summer by circulating cool air overnight.
Here is SC Johnson’s 2008 progress against our 2011 reduction goals. Please visit www.scjohnson.com to learn more about our efforts.
Waste and Emissions Reduction
Greenhouse Gas Reduction — U.S.
GOAL: By 2011, for global manufacturing reduce
combined air emissions, water effluents and solid
waste by 50 percent versus the 2000 baseline, as a ratio to production.
GOAL: By 2011, reduce on an absolute basis
U.S. GHG emissions another 8 percent versus the 2005 baseline.
-33.71%
2006
2007
-40.5%*
2007
7%
2008
-40.5%
2008
ACHIEVED
2009
As a member of the GHG Protocol technical working group focused on Goals, Principles and Terms, we are helping define principles for
product GHG accounting and reporting, ways to link product and corporate GHG accounting and reporting, performance tracking standards,
supplier engagement and communication possibilities for product-level GHG performance. The
end goal of the GHG Protocol initiative is widely
adopted, international standards for measuring and reporting GHG emissions across corporate and product supply chains.
WWW.SCJOHNSON.COM
2010
0
10
20
30
40
50
2010
60
70
8
4
0
4
8
12
16
Greenhouse Gas Reduction — Worldwide
Global Renewable Energy
GOAL: By 2011, reduce GHG emissions for all
worldwide factories by 12 percent versus the
2000 baseline on an absolute basis.
GOAL: By 2011, we want to source 40 percent
of our total electricity usage worldwide from renewable energy.
-9.4%
2006
ACHIEVED
2008 ACHIEVED
2007
-15%
-27%
2009
2010
0
2006
28%
2007
28%
20
36%**
2008
2009
GOAL
SC Johnson is working with the World Resources
Institute and the World Business Council for Sustainable Development to develop global standards for measuring and reporting GHG emissions within the supply chain. SC Johnson is a main sponsor of the GHG Protocol Supply
Chain standard and a founding member of the WRI Corporate Consultative Group.
-17%
2009
GOAL
Helping Establish
Supply Chain Protocols
-2.4%
2006
3
6
9
12
GOAL
At SC Johnson, we believe that what gets
measured gets done. That’s why we have formal
policies and measures regarding environmental protection. Alignment with these policies is
audited at SC Johnson factories around the
world at least once every five years. In addition,
the company’s highest management committee
regularly checks progress with a scorecard designed to track safety, health and environment
status. Our guidelines and training programs
include topics such as protecting air quality,
reducing waste and managing energy, and safeguarding rivers, lakes, wetlands and oceans.
MEASURING OUR PROGRESS
GOAL
A MATTER OF POLICY
2010
15
18
21
24
27
30
0
10
20
30
40
50
* This year we re-evaluated how we measure waste and emission reductions, bringing them into alignment with WRI-based
accounting rules. Given this, the 2007 figure has been adjusted to 40.5% versus the 44.6% that was reported in 2008.
Waste emissions are normalized to production.
** In July 2008, SC Johnson reported that we would achieve 38 percent of total electricity usage worldwide from renewable
energy, as a result of our wind power initiative in Bay City, Michigan, which began in the spring of 2008. However, due to
changing energy mix in various countries, our overall global result netted out at 36 percent for the full 2008 year.
PROTECTING
FAMILIES
As the leading marketer of household insect control
products worldwide, we’re committed to helping
protect families from diseases like malaria and
dengue, while creating sustainable business
value. Our malaria programs alone have reached
more than a million people.
Image from the Centers for Disease Control and
Prevention’s Public Health Image Library.
SINCE OUR
LAST REPORT
> Joined Global Business Coalition on
HIV/AIDS, Tuberculosis and Malaria to
make our education materials more
broadly available.
> Continued to sponsor malaria-
awareness events in South Africa,
Ghana and Mozambique.
> Reached millions of consumers
in areas including India, Thailand, Indonesia and other countries with
information about dengue prevention.
> Continued to launch new pest control
products that help protect families
around the world.
ON THE WEB
Learn about SC Johnson’s malaria
education efforts and how we are reaching more families every year.
www.scjohnson.com
28 PROTECTING FAMILIES
Awareness and Education Aid Prevention
Imagine living in fear of something as tiny as a mosquito. We don’t think anyone should have to — but half a billion people are affected by insect-borne diseases each year. From malaria, dengue and encephalitis, to West Nile virus and others, these dangerous infections have a tremendous impact.
Acting Locally and Globally
Along with malaria and dengue programs that
span countries from Brazil to Mozambique to Indonesia, in 2009 SC Johnson also joined a global coalition working to address the important
public health threat of malaria.
Yet, importantly, they are preventable. In fact, the
public health menace of insect-borne illness can be
greatly mitigated through protection from insects.
That’s why one of SC Johnson’s key sustainable
development platforms is helping to minimize the
spread of insect-borne diseases in high-risk areas
of the world.
The Global Business Coalition on HIV/AIDS, Tuberculosis and Malaria is a non-government
organization working to bring the private sector’s
capabilities to the fight against these diseases.
Members share business expertise, infrastructure
and reach to help improve public health. SC Johnson’s participation is focused on the Global Business Coalition’s malaria program.
As the leading marketer of household insect control products, SC Johnson is working every day
to make products that are more effective, to reach
more people with our products, and to educate
families about how to protect themselves from diseases like malaria and dengue.
While we have just become a part of the Coalition and are still working out the details of our participation, we hope that it will provide an opportunity for SC Johnson to reach even more people in more high risk areas with our disease education toolkits.
OUR MALARIA EDUCATION
PROGRAM IN SOUTH AFRICA
has directly reached over
1,000,000 people.
Our participation will be part of our work with the
Clinton Global Initiative (CGI), which SC Johnson
joined in 2008. SC Johnson’s CGI commitment is to roll out a new anti-malaria information, education and communication program based on our previous successful anti-malaria initiatives.
Partnering with the Global Business Coalition, we will create a repository of information for NGOs, governments, businesses and community
health groups to help them educate about this critical public health issue.
PRODUCTS
THAT PROTECT
In 1968, we opened our first entomology research center. Today we operate the world’s largest private, urban entomology research center, with more than 65 experts working to develop pest control solutions.
Our pest control brands include Raid®, Baygon®, OFF!®, Autan® and AllOut®. Within these brands, the company’s sprays, traps, coils, electrics, and area and
personal repellents are effective tools in the prevention of insect bites as well as protection from cockroaches, flies, bees, ticks, moths and other pests.
Importantly, our innovations do more than merely reduce a nuisance. We’re continuously improving performance to repel mosquitoes longer, kill cockroaches
and other pests faster, and help deter insects that may carry diseases. For lower-income areas, we’re also developing lower-cost options that make protection
more affordable for more people.
SC Johnson is constantly working to improve the performance and quality of our insect control products. Using our innovative Greenlist™ ingredient selection
process, our scientists continually improve product ingredients and formulations for the environment and human health, without compromising performance.
Partnering and Educating in South Africa
Malaria kills more than a million people each year, most of whom are children
under age 5 living in Africa. That’s why, for five years now, SC Johnson has
supported malaria education for families and communities in three South African provinces with endemic malaria — Mpumalanga, Limpopo and
Kwazulu-Natal.
We began as a partner in the Healthy Children, Healthy Homes™ program, a
collaborative effort between SC Johnson, South Africa’s National Department
of Health, the Medical Research Council and RTI International. This community-based malaria education program has now reached more than a million
South Africans.
Part of SC Johnson’s role in the program has been to help develop materials
and sponsor initial training sessions to create “Malaria Educators.” We’ve also sponsored a wide range of information, education and communication materials and “Malaria Fighter Kits” that include large and easy-to-understand visuals, giveaway items such as mosquito coils and brochures, and collateral for trainers such as shirts and bags.
At the same time, we continue to play an important role in sponsoring local
educational events. In 2008, SC Johnson was one of the key sponsors of
National Malaria Day held in Kwazulu-Natal. Along with handing out malaria
education leaflets and calendars to attendees, SC Johnson also donated
10,000 mosquito coils. Similarly, SC Johnson supported our South African
partners in making the most of Regional Malaria Day events with free malaria information, 4,000 mosquito coils and appreciation gifts for attendees and community health workers in Limpopo.
At the Regional Malaria Day event in Mpumalanga, the company helped
launch the Raid® Malaria School Sports tournament, in which boys and girls
compete for their schools in soccer and other sports. SC Johnson provided
sports kits, malaria educational leaflets and Raid® coils, reaching another
4,000 people.
Reaching New Consumers in China
In September 2008, approval was granted by the Chinese Ministry of Commerce department for SC Johnson to acquire majority ownership of Jiangsu Tongda Co., Ltd. Commonly known as Tongda, the company makes
and markets the popular and effective Pest Rest® brand of pest control
products in various areas of China.
Partnering with UNICEF for Central African Republic
Another SC Johnson initiative targeting malaria comes from our subsidiary
company in France, which markets Baygon® brand products. In 2008 and
again this year, SC Johnson France is donating a portion of every Baygon®
brand sale to UNICEF, to help finance the organization’s Central African Republic program targeting malaria and other health issues.
In 2008, UNICEF contributions from the Baygon® brand totaled more than
$158,000, which helped support vaccinations, vitamin supplements, the distribution of mosquito bed nets and other activities. The 2008 program
helped 650,000 young children and 200,000 expectant mothers.
In 2009 the program aims to beat that record. Again this year, part of the program is an interactive web site that helps educate about malaria and enable people to contribute to prevention efforts. The site, which can be visited at www.baygon-unicef.com, is presented in French and includes opportunities for readers to donate to UNICEF, alert friends about malaria and more.
The brand includes aerosols, coils, mats and electric products and, importantly, has a broad distributor base and deep distribution in areas of China that complement the company’s existing Raid®
brand business there.
Making a Difference in Mozambique
Also in 2008/09, SC Johnson began expanding its South Africa malaria education program to Mozambique with the objective of reaching more than 90,000 people.
So far, the company has begun to increase awareness of malaria through its
malaria-specific television, point-of-sale and outdoor advertising. In addition,
SC Johnson sponsored Mozambique’s National Malaria Day events in April in partnership with the Office of the First Lady of Mozambique.
Insect-borne diseases
affect more than
500 million
people worldwide.
Five Years Fighting Dengue in Thailand
Taking Our Measure
This year, SC Johnson celebrated the fifth year of its Baygon Anti-Dengue
Campaign in Thailand. The effort includes free in-home and outdoor spraying as well as a road show and product samples to help protect families from
mosquitoes that could carry dengue. Both the Baygon® and OFF!® brands
participated locally. The 2008 free spraying service reached 24 communities
in Bangkok, covering more than 10,700 households and 43,000 people at the highest risk for dengue.
Here’s a summary of some of SC Johnson’s insect-borne disease education outreach results in the past year.
®
In addition, the campaign included a kick-
off event called “S.O.S. Save Our Schools” with the local department of education. In collaboration with the Bangkok Metropolitan authority, the Baygon® brand donated educational materials and products to 436 schools in Bangkok. Thanks to specially designed advertising and public relations that explained
the dangers of dengue, all together SC Johnson
Thailand’s efforts reached more than four million
people nationwide.
Educating with Advertising in Indonesia
In Indonesia, the company’s Baygon® brand has worked over the past year to increase awareness of
the danger of dengue mosquitoes and the importance of protection. Ads demonstrate closing garbage
containers and eliminating standing water, as well as using Baygon® products to kill mosquitoes. The
company also has produced leaflets that are available in stores to educate consumers about dengue and how to prevent it.
Mosquito coils donated to National
Malaria Day held in Kwazulu-Natal in
South Africa:
10,000
coils
2008 contributions to UNICEF from the
Baygon® brand to support vaccinations,
vitamin supplements, distribution of
mosquito bed nets and other activities:
$158,000
Reach of SC Johnson Thailand’s
free spraying service to help protect
families from mosquitoes that could
carry dengue:
43,000
people
Number of community centers visited by
dengue-prevention educational caravans
from SC Johnson Philippines:
405
centers
2,500,000 people
live in areas at risk
of dengue transmission.
Continuing Protection in the Philippines
This past year, SC Johnson’s longest-running anti-dengue campaign continued in the Philippines. For 11
consecutive years, the Iwas Dengue campaign has helped educate families about protecting themselves
from mosquitoes that may carry dengue. The program’s nationwide reach is now over a million households.
The Iwas Dengue campaign rests on three important pillars:
• Toll-free hotline that consumers can call to ask for free spraying support during an outbreak.
• House-to-house visits by the Iwas Dengue Brigade, including spraying, repellent samples and anti-dengue education materials.
• Educational caravans that bring leaflets and videos about dengue and its prevention.
Among the program’s 2008 accomplishments, free spraying operations reached 132,000 households and educational caravans visited 405 community centers nationwide. In partnership with the Department
of Education in metro Manila and speakers from the Department of Health, the campaign launched a Public School Educational Caravan that reached more than 14,000 parents, teachers and students in metro Manila public schools.
A MATTER OF POLICY
Over the years, SC Johnson has developed best practices in educating about insect-borne
diseases, and these learnings are now captured
in an array of materials that can be easily localized for individual subsidiaries. This makes it fast and easy for a subsidiary in a country with malaria or dengue outbreaks to act quickly
with pre-developed materials. Items include
materials and guidelines for product sampling,
school educational programs, village events
and public health programs including houseto-house spraying and sampling; educational
materials ready to be printed and distributed;
and designs for branded giveaway items.
Protection Goes All Out in India
In India, where SC Johnson markets the popular AllOut® brand of mosquito
repellent products, the company has been working with local municipal authorities and resident welfare associations to provide a variety of education and
support against dengue and mosquito-borne diseases. The 2008/09 program
focused on two cities: Chennai and Hyderabad.
Sponsored by the AllOut® brand, fumigation specialists visit homes to kill
existing mosquito larvae and prevent further infestations. They also discuss
disease protection tips with residents. In addition, fumigation is carried out
outside the home to manage potential mosquito-breeding sites such as open
drainage areas and standing pools of water.
The AllOut® brand also sponsors a “road show” with an AllOut® truck that
visits neighborhoods and engages crowds with contests and quizzes about
disease protection, to spread awareness.
Through March of 2009, this year’s program had reached over 2,300 households with fumigation activities, as well as thousands of residents through
outdoor activities such as the road show and promotions in stores.
STRENGTHENING
COMMUNITIES
For SC Johnson, sustainability is about
making every place better because we’re
there. That’s why in the last 10 years we’ve
made more than $180,000,000 in philanthropic contributions, and why we continue
working to create mutual value in new
communities around the globe.
SINCE OUR
LAST REPORT
> Continued working with our
partners to grow a co-created public toilet cleaning service in base of the pyramid communities.
> Helped support the building of a
medical clinic, which opened in March
at the heart of Nairobi’s Kibera slum.
> Even in the face of the difficult
economy, increased our United Way
giving in the United States to surpass
$1.8 million.
> Launched a pyrethrum supply chain
initiative with Rwandan py farmers
and Texas A&M.
ON THE WEB
Find out about the base of the pyramid and how SC Johnson
has been building opportunities there.
www.scjohnson.com
34 STRENGTHENING COMMUNITIES
Continuing to Grow at the Base of the Pyramid
Since 2003, SC Johnson has been working to
engage and grow with base of the pyramid (BOP)
communities in Kenya and other areas. The goal is
to create mutual value through sustainable businesses, and we have continued to refine our efforts.
Today, our focus is primarily in three areas: partnering in sustainable BOP enterprises, working
with the BOP as a supply chain partner, and better
reaching BOP consumers. One success is a new
shared toilet-cleaning program.
Building on BOP Business Learnings
Working with partners Carolina for Kibera and the Coalition of Youth Entrepreneurs, in July 2006
SC Johnson formally co-launched the “Community
Cleaning Services” (CCS) business venture in several neighborhoods of Nairobi, Kenya.
Together we have explored numerous opportunities, from garbage collection to in-home cleaning
and pest control. Each new venture has brought important learnings, such as the need for immediate income, field training, experienced team leaders
and more. Last year, we created together a service
that is proving to be the most promising yet.
Along with providing regularly cleaned private
toilets, CCS also manages
public toilets
like this one in
Pangani, which
was refurbished
and painted to make com
munity members
feel more com
fortable using it, especially women and girls.
WWW.SCJOHNSON.COM
Improving Cleanliness, Incomes
Most toilets in Nairobi’s poor neighborhoods are
shared by multiple households and are poorly
maintained. Through the new service, households
sharing a toilet can hire CCS to clean their toilet
and share the cost. That means the neighbors can
enjoy regularly maintained, more sanitary toilets at
a minimal cost — about 17 U.S. cents per household.
CCS entrepreneurs create and lead teams that provide the cleaning services in their own com-
munities, and the teams share the profits. Nine entrepreneurs currently lead teams, with about 45 people working two to four days per week. The typical pay is more than two times the official
local minimum wage, and some toilets now have an on-site attendant whose income is nearly 40 percent above minimum wage.
Importantly, CCS is also focused on environmental
sustainability and has initiated a bulk product program, so packaging is reused within the business rather than discarded. This eliminates cost and waste for the business and the communities in which we operate.
The business is under way in the Mulango Kubwa,
Korogocho, Kariobangi, Kariokor, Kawangware, Pangani, Zimmerman and Mathare #10 areas of Nairobi.
More to Learn, More Ways to Grow
As with any new venture, we see great benefits and areas for growth. The business’ client list is growing 200 percent per year, which means a need to hire and train more teams. Plus, while the economics of the program are good for our
BOP partners, SC Johnson is still investing in the
pilot — though we are seeing benefits in terms of building brand awareness.
supporting health
supporting people
Since 2001, Tabitha Clinic has treated patients in the heart of the Kibera neighborhood of Nairobi, Kenya. The community-based medical clinic has provided primary healthcare and
youth-friendly services to as many as 20,000
people per year, and has worked in partnership
with the U.S. Centers for Disease Control and
Prevention since 2007.
And now, the clinic is doing its work in a bigger,
better home. On March 10, a new 13-room, eco-friendly Tabitha Medical Clinic was opened
with a formal ceremony that included Kenyan
Prime Minister Raila Odinga and U.S. Ambassador Michael Ranneberger. The new clinic was funded in part by SC Johnson.
Tabitha Medical Clinic continues to offer healthcare to all Kibera residents on a sliding-
fee scale. It’s one of the only medical facilities in Kibera that staffs more than one full-time
physician and offers inpatient and outpatient
medical services seven days a week.
The Community Cleaning
Service program now serves
120 public toilets
PER MONTH, PROVIDING AT LEAST
600 FAMILIES
WITH MORE SANITARY BATHROOMS.
BECAUSE
NEEDS NEVER STOP
MEASURING OUR PROGRESS
Despite the tendency of companies and individuals
to tighten their belts in response to the economic
downturn, needs have never been greater. And
at SC Johnson, we believe unwavering support is
fundamental to being a responsible and resilient
member of our communities around the globe.
General Manager Participation
On Community Boards
Employee
Volunteerism
Fiscal Year 2007/2008.
Leadership Guidelines
The company has formal Community Leadership
Guidelines that help drive accountability. Each SC Johnson company around the world has these objectives:
• Demonstrate senior management leadership in
the community by having the General Manager
hold at least one board-level membership with a major local community non-profit organization.
• Give to local charities at a target of 2 percent of pre-tax profits.
• Promote and coordinate at least one significant
employee volunteer effort in the community each year.
A Commitment to Volunteerism
In addition, many SC Johnson employees share
their time with worthy organizations such as Habitat for Humanity, Big Brothers Big Sisters, the Salvation Army, community food banks and
other service organizations.
We’re proud our employees give generously of their
time and treasure. For example, our 2008 United
Way campaign in the United States raised more
than $902,000 in employee contributions. With a
match by the SC Johnson Fund, Inc., we provided
community support of more than $1.8 million.
36 STRENGTHENING COMMUNITIES
Here’s a look at SC Johnson’s 2007/08 progress on our community leadership and philanthropy goals.
100
90
80
70
60
50
40
30
20
10
0
87%
79%
74%
Developed
Markets
100
90
80
70
60
50
40
30
20
10
0
Developing
Markets
Total
75%
78%
77%
Developed
Markets
Developing
Markets
Total
Worldwide Corporate
Philanthropic Contributions
Rolling cumulative contributions (includes SC Johnson Fund, Inc.) in U.S. dollars.
$190,000,000
$180,000,000
$170,000,000
$160,000,000
$150,000,000
$140,000,000
$130,000,000
$120,000,000
$110,000,000
$100,000,000
$90,000,000
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Engaging BOP Suppliers in Rwanda
With the insecticide pyrethrum, or “py,” SC Johnson has an opportunity to engage base of the pyramid (BOP) suppliers for significant mutual benefit. Extracted from dried chrysanthemums,
py can be produced synthetically, but there are thousands of BOP farmers in East Africa for whom it is a subsistence crop.
By helping to improve the consistency of their supply, we can support BOP economic growth at the same time that we sustainably source this critical ingredient for our pest control products.
SC Johnson has purchased pyrethrum from East Africa for more than 40 years. In 2007, we began to explore expanding these purchases by adding Rwanda. Through town hall meetings with Rwandan farmers, we jointly identified the greatest challenges, including how to best dry the py flowers.
Since then, we have initiated a partnership focused on improving Rwandan pyrethrum yields, quality and
production through farmer organization, advanced technology and more effective agricultural practices.
The effort is being implemented through SPREAD, the Sustaining Partnerships to Enhance Rural Enterprise
and Agribusiness Development project. SPREAD is a U.S. Agency for International Development-funded
effort led by Texas A&M University’s Borlaug Institute. SC Johnson and USAID are funding the project.
Using its proven model for providing both scientific/technical farming support and business advice,
SPREAD hopes to increase Rwandan py production from the 400 tons of dried flowers produced in 2008
to 1,200 tons in 2010 while also increasing their pyrethrum content. This will lead to significantly increased
returns for the py farmers, and a more reliable and sustainable source of this important product ingredient.
HELPING
WHERE HELP IS NEEDED
As we do every year, SC Johnson last year also provided emergency support to areas affected by disaster. Here are two examples:
• Following the devastating earthquake in China in May of 2008, SC Johnson made a $50,000 donation to organizations such as the Red Cross to support victims. SC Johnson China also rushed cases of
Raid® coils and OFF!® repellents to the Sichuan province to help protect
those who had lost their homes, as well as those working on relief efforts.
A MATTER OF POLICY
Every year, SC Johnson sets aside 5 percent of pre-tax profits globally for corporate giving — nearly four times the average. Subsidiary
companies aim to give back at an average of 2 percent of pre-tax profits.
Working to Reach BOP Consumers
In the past year, SC Johnson also continued to
progress its efforts to reach base of the pyramid
(BOP) consumers. We continue to use a motorcycle
sales program in Nigeria, launched in 2006, which
aims to get our products into more traditional and
lower-income outlets. This program has grown to
132 motorcycles and is an important part of our
Nigerian go-to-market strategy.
In Ghana, a deep distribution program launched in
2007 is gaining momentum. The effort leverages
learnings from our motorcycle sales program in
Nigeria, but was modified to meet local needs. The
Ghana program uses push bikes that are specially
designed for carrying cargo. In the last year, the
program became self-sustaining with sales covering
all costs as well as providing improved incomes to the salespeople/riders. SC Johnson Ghana is
working with local distributors to improve and expand this program.
• In July of 2008, following catastrophic floods in the Midwest, SC Johnson donated more than 23,500 personal insect repellents to protect flood victims during cleanup and recovery efforts. The OFF!® brand donates approximately $200,000 in product and contributions each year, in the
United States alone, to help protect people from mosquitoes that may carry the West Nile virus.
WWW.SCJOHNSON.COM
OFFERING
GREAT WORKPLACES
Being a family company means more than
just family leadership. It means focusing
on respect and inclusion, ensuring the wellbeing of everyone at our sites, and offering
an enduring commitment to doing what’s
right for people for the long term.
SINCE OUR
LAST REPORT
> Recognized for the ninth year among
FORTUNE magazine’s 2008 100 Best
Companies to Work For in America.
> Named a Best Company for Working
Mothers for the 20th time, and recognized as a Top 50 Company by DiversityInc.com, both in the U.S.
> Invested in diversity initiatives such
as a new online system for managing
diverse suppliers.
> Incorporated quality measures into
our Safety, Health, Environment and
Quality processes, training and audits
around the globe.
ON THE WEB
Find out more about SC Johnson’s unique
company culture and commitment to doing what’s right for its people.
www.scjohnson.com
38 OFFERING GREAT WORKPLACES
A Commitment to People
Ask someone from SC Johnson what it’s like to
be employed at the company in good times, and
they’ll tell you it’s great. But ask what it’s like in
tough times, and they’ll tell you it’s even better.
That’s because SC Johnson’s family ownership and
long-term perspective mean we can take the long
view — despite challenging economics.
A Chance to Recharge
In fact, this past year, despite the economic downturn, the U.S. company offered employees an extra-long break over the 2008/09 holiday period. The break was lengthened by four days. Explained Chairman and CEO Fisk Johnson: “During a time of intense competition and investment, one could argue that we need to be working every minute to ensure that our strategies succeed. But I believe there is incredible energy and inspiration that comes from spending time with family and friends to have a chance to recharge and re-engage.”
When recognizing SC Johnson as a “100 Best
Company to Work For in America” this year, FORTUNE magazine cited the company for its extended annual holiday break, competitive salaries and having the lowest turnover.
SC Johnson’s
U.S. EMPLOYEE
Turnover
IS oNLY
2 PERCENT.
WWW.SCJOHNSON.COM
recognition
“In challenging economic times like
these, committed and motivated people
couldn’t be more fundamental to a company’s success. At SC Johnson, we believe a culture of mutual respect and
inclusion is vital to earning that commitment, and contributes to every success.”
Chairman and CEO Fisk Johnson
Continuous Recognition
OVER THE PAST YEAR
“Best Place to Work” Recognition
SC Johnson Argentina: Recognized for the 7th
time and top 25 every year since 2002.
SC Johnson Canada: Recognized for the 3rd time
— ranked 45th among 75 best companies.
SC Johnson Central America: Recognized for the
2nd time — ranked 4th among 30 best companies.
SC Johnson Chile: Recognized for the 4th time —
ranked 10th among 35 best companies.
Along with once again making the FORTUNE list, SC Johnson was also cited in 2008 by other U.S. organizations for being a great place to work.
The company was recognized by Working Mother
magazine, AARP, DiversityInc and other organizations. Similarly, the company was named
a great place to work in multiple countries around
the world (see sidebar at right for list).
SC Johnson Germany: Recognized for the 6th time
SC Johnson sees this sustained recognition as a testament to the company’s commitment to listening to, and having open dialogue with, employees. While tough economic times can bring tough decisions, SC Johnson works hard to ensure that decisions have the minimum possible impact on people and that all people are treated fairly and with respect.
SC Johnson United States: Recognized for the
9th time — ranked 81st among 100 best companies.
As an example, over the past few years, operational improvement projects in various countries — such as the relocation of SC Johnson’s
European headquarters to Switzerland — resulted
in some job redundancies. Those affected by these projects were offered an opportunity to move to another location in order to remain employed with SC Johnson, or given the option of a generous severance package that surpassed
local market norms.
We made our 20th appearance on the “100 Best Companies for Working Mothers” list from
Working Mother magazine.
SC Johnson Italy: Recognized for the 7th time
SC Johnson Mexico: Recognized for the 8th time —
ranked 7th among 88 best companies.
SC Johnson Turkey: Recognized for the first time —
ranked number 4.
SC Johnson Venezuela: Recognized for the
4th consecutive year in the top 10.
Other Employer Recognition
For the third consecutive year, AARP recognized us as a top company for those over 50.
We ranked 6th among top 10 companies for disabilities and in the top 50 companies for diversity in 2008, according to DiversityInc.
For the seventh consecutive year, we received a score of 100 percent on the Corporate Equality Index.
Ensuring Safety, Health, Environment and Quality
SC Johnson has a formal Safety, Health and Environment team that this past year added responsibility for quality measurement and tracking. Previously completed by another department, the important quality role was consolidated into Safety, Health, Environment and Quality (SHEQ) to enable increased
consistency and measurement around the world with formal audits completed on a regular basis. Each SC Johnson factory is audited at least once every five years, with SC Johnson and external auditors reviewing a total of 74 criteria in nine areas, including employee safety, industrial hygiene, air/water and waste management, and more.
Today, the SHEQ team helps SC Johnson maintain global standards for manufacturing facilities, enabling
equivalent working conditions for SC Johnson people worldwide. They ensure consistently measured and applied standards for safety, health, environment and quality. Naturally, compliance with local laws and regulations is mandatory. When SC Johnson guidelines are more protective than local regulations, the stricter company requirements must be met.
PER 200,000 HOURS WORKED
Here’s a look at the company’s worldwide safety performance record.
40
35
Days Lost
Medical Incidents
Lost Time Accident Rate
30
25
20
15
10
5
0
89/90 90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08
YEARS
SC Johnson employees hear from management with
business updates, company information and other news
an average of
120 TIMES PER YEAR.
40 OFFERING GREAT WORKPLACES
Driving Diversity Progress
SC Johnson has been formally pursuing diversity
efforts since 1992. Through our Global Diversity and Inclusion Strategic Plan, which was updated
last year, SC Johnson looks continually at diversity
from a business perspective, to understand the role
it plays in sustaining our market leadership position
and growing our worldwide businesses.
One way we measure success is our annual Diversity Scorecard, which tracks growth in diverse talent and in key external measures. We
also have diversity business councils in the United
States that support employees by bringing unique
perspectives into focus, providing networking and development opportunities, and connecting to community groups.
These groups include the Abilities First™ Business
Council, African-American Business Council, Gay
and Lesbian Business Council, Hispanic Business
Council and Women’s Business Council.
In 2007/08, the U.S. company also launched six
support groups to bring together employees who
face similar challenges outside of work. The new
groups include Parents of Teens, Parents of Special
Needs Children, Elder-Care Givers, Single Parents,
Mature Workers and Early Careers.
Taking Our Measure
A MATTER OF POLICY
Here’s a look at some key measures in the United
States related to SC Johnson’s commitment to the
people who make the company a success:
SC Johnson has more than 50 guidelines and 30 training programs on Safety, Health,
Environment and Quality topics. Following an
audit, an SC Johnson operation has 60 days to respond in writing with a description of actions to be taken and a timeline for completion. Follow-up reports are due every six months
and actions must be completed within 12
months unless capital spending is planned.
Total number and rate of U.S. employee
turnover by age group (including retirements):
50
41.0%
(9)
40
30
20
10
0
14.0%
(84)
4.6%
(3)
<25
5.6%
(28)
4.15% 3.22%
(38)
(37)
26 34 35 44 45 54 55 64
>65
2007/08 hours of in-house training
provided to employees worldwide:
30,967
hours
Percentage of employees receiving
regular performance reviews:
100%
WWW.SCJOHNSON.COM
Supporting Programs that Support People
Listening to Employees
Like all companies this year, SC Johnson identified ways to temporarily reduce expenses to help address the global economic crisis. But despite some belt-tightening, the company continues to offer unique support for employees,
including flexible work arrangements, subsidized
concierge services, award-winning child care programs and more.
While SC Johnson takes pride in the recognition we receive as a great place to work, we don’t take it for granted. We regularly measure employee perceptions, company culture and engagement
around the world through opinion surveys. We
also benchmark against other companies through
employer-of-choice programs such as FORTUNE
and AARP.
Plus, SC Johnson has continued to invest in programs that help support families, such as these new initiatives in the United States:
Here’s a snapshot of SC Johnson’s key 2008 employee opinion survey results versus a global
fast-moving consumer goods norm, as measured by Towers Perrin-International Survey Research.
• The company pays up to $15,000 to support infertility treatments such as in-vitro fertilization.
In addition, this past year SC Johnson expanded
its adoption support program. Employees are
now reimbursed $5,000 per adoption with no
maximum number of reimbursements.
• SC Johnson employees who live more than 25 miles from work may stay overnight at a local hotel for just $25 to $35 per night; the company picks up the rest of the cost. Traditionally available four times a month, this
program was expanded in summer 2008 to eight times a month in light of high gas prices
and extensive summer highway construction.
2008 differences versus fast-moving
consumer goods norm:
+14%
+13%
+13%
+11%
+11%
+10%
+10%
+9%
+9%
+8%
0
5
10
Communication
Company Leadership
Development & Training
Worklife Balance
Reward & Recognition
Division Management
Teamwork
Employee Engagement
My Manager
Employee Involvement
15
Corporate Responsibility:
A Look Under the Hood
An Interview with Chris Coulter, Vice President — GlobeScan Incorporated
Q
GlobeScan has been tracking expectations
for corporate responsibility for 10 years.
What’s a key trend you’ve seen?
Since 2001, we have seen
a growing gap between public
expectations for corporate
social responsibility (CSR) and
perceived CSR performance.
Our latest research, completed
in February 2009, shows that
across 15 countries, expectations
for responsible business remain high while performance ratings continue to decline.
While the dynamics vary from country to country,
this overall growing “expectations-performance
gap” around CSR largely explains why the topic of
CSR and sustainability remains high on the corporate agenda, even during these difficult times.
Q
What do you think is driving this?
There is a lot “under the hood” of this societal
trend. On the expectations side, there is clearly
a demand from consumers around the world for
companies to be more responsible, and this is a
key driver of growing CSR expectations. Perhaps
equally important, however, is the hopeful call from
consumers for business to play a more aspirational
social and environmental role, which is borne out
of a sense that companies are up to the task of
building a better future.
On the performance side, there are simply not
enough companies demonstrating leadership
to consumers and just enough negative coverage
of corporate misbehavior to keep trust in business
low. That is, while it is true that multinationals have
42 Q&A — CORPORATE RESPONSIBILITY
been working much more diligently over the past
decade on their CSR commitments and corporate
performance has in fact improved, all this good
work is not trickling down to the consumer. At the
macro level, companies have failed to connect with
consumers sufficiently around their CSR programs
and commitments.
Q
Is there another pattern that stands out?
The growth of ethical consumerism across the
world — and this is actually related to the expectations-performance gap, we believe. Consumers
across a diverse set of geographies — including
North America, Europe, Asia — are increasingly
rewarding and punishing companies because of
their CSR performance. We first noticed this about
two years ago and this trend has continued even
through the current recession.
For example, 62 percent of Americans now say
they have punished a company for being socially
irresponsible, up six points from 2007 and 13
points from 1999. Similarly, 34 percent of Chinese
consumers say the same, up four points from
two years earlier and 10 points from 1999. This
is a trend we have seen across a range of industry
sectors and represents a significant change in the
way consumers are interacting with business.
“[There is a] hopeful call from consumers
for business to play a more aspirational
social and environmental role, which is
borne out of a sense that companies are
up to the task of building a better future.”
The gap between CSR expectations
and perceptions is growing.
Expectations on CSR vs. Industry CSR Performance
60
50
40
CSR expectations*
CSR industry
performance**
10
0
10
2001
2003
2005
2007
2009
verage of 15 countries, 2001 2009, including Australia, Brazil,
A
Canada, Chile, China, France, Germany, Italy, Mexico, Nigeria,
Russia, South Korea, Turkey, U.K. and U.S.
*Aggregate net expectations of 10 responsibilities
of large companies.
**Aggregate net CSR performance ratings of 10 industries.
Q
What do you think these
trends indicate about the future?
Consumer demand for environmentally and socially
responsible behavior and products will continue
to grow. To protect and enhance their reputations,
companies need to position themselves to meet
shifting societal expectations and ensure performance-based responses to these demands.
There are also wonderful opportunities in the form
of new products and solutions that respond to
the very significant sustainability challenges facing
the planet. Think of how many different products
and services will be on offer within a few years
of a truly carbon-constrained world. This is the
sort of challenge that business is well placed to
respond to, and companies that are able to look
longer term will be first to market.
Q
How should they go about it?
Performance, transparency, humility, integrity
and integration need to be the guideposts. Focus
on performance first, communications second.
Commit to transparency as a way of doing business. Be humble about your efforts, especially
during these trying times. Focus on higher-order
Ethical consumer activism
is up despite the recession.
Punished Companies Seen as Socially Irresponsible*
70
USA
Canada
Italy
Great
Britain
Spain
South
Korea
Turkey
China
Japan
60
50
40
30
20
things like integrity as a way to guide behavior, and
integrate this into all aspects of the company. This
holistic approach is really the only way to respond
to growing skepticism among consumers.
Q
And how does this affect corporate reputation?
There is no question that corporate social
responsibility (CSR) is becoming an increasingly
important driver for corporate reputation. Stakeholders that matter to companies are valuing
strong CSR performance to an ever-greater extent,
and we expect this to continue in the coming years.
CSR can help differentiate from the competition,
grow market share, deepen brand loyalty, manage
issues risk, improve stakeholder relations and
minimize disruptive regulation. It is quite a potent
tonic for managing corporate reputation during
these turbulent times.
Q
Have perceptions about CSR changed?
What it means to be a responsible company
has certainly evolved over the past decade,
especially in emerging markets. While consumers
in developing countries used to tell us that good
CSR consisted largely of producing safe, quality
products or services, now companies are being
asked — and indeed expected — to go well beyond
this. Consumers now expect serious engagement
on social and environmental issues and they are
increasingly insisting on corporate transparency.
10
0
1999
2001
2003
2005
2007
2009
*Percentage that “have done,” increases: 1999 2009.
Data gathered in 1999, 2001, 2002, 2003, 2004, 2005,
2007 and 2009.
WWW.SCJOHNSON.COM
“Performance, transparency, humility,
integrity and integration need to be
the guideposts.”
Q
Is that true globally?
We find that North American, European and
Australian consumers tend to be the most likely to
take companies’ CSR behavior into account when
they shop, but consumers in many countries are
becoming increasingly attuned to the notion of
holding corporations accountable through their
purchase decisions.
Consumers in China and South Korea have
perhaps shown the fastest rise in their propensity
to seek out and reward strong CSR performers
while punishing those they consider to be poor
performers. While only 13 percent of South Korean
consumers said they had rewarded companies
they consider to be socially responsible in 2001,
this figure has jumped to 44 percent in 2009.
The intensity of the rise in CSR expectations
over the past three years in China is breathtaking.
The increase there in demands for CSR now
approximates expectations in North America and
Europe. In a few short years, Chinese consumers
have gone from perceiving CSR as providing
quality products, to defining it as the honesty,
trustworthiness and transparency of the makers
of the products.
Q
What do your findings indicate
are the most pressing CSR topics
today in the minds of consumers?
It tends to vary by geography. Our most recent
surveys indicate that people in developing countries are increasingly focused on employment
creation and education and training, while environmental issues top the list in a number of developed
countries. However, the current recession has driven
expectations higher for business to address social
Climate change and water pollution
remain top concerns.
Seriousness of Environmental Problems*
70
Whatever the issue that most preoccupies consumers, it is important for companies to maximize
that intersection between where they can most
improve performance and where societal needs
are greatest. Easy to say, but very difficult to do.
Q
You also survey sustainability experts. How
have you seen their perspective change?
We’ve seen the opinions of our international panel
of sustainability experts and the global general
public come together on climate change issues.
There, public opinion about the seriousness of
the issue and the need for action now much more
closely resemble experts’ sense of urgency.
Beyond climate change, sustainability experts
are increasingly signaling fresh water as an area
in critical need of global attention. Our expectation
is that this will become a dominant sustainability
theme in the coming years and very much mirror
what we have seen around climate change
(e.g., a water disclosure project, pressure for
an international agreement on water, etc.).
Q
60
50
Water
pollution
Climate
change /
global
warming
40
30
20
10
0
problems in a number of developed countries,
including the United States.
1998
2000
2002
2004
2006
2008
*Percentage who said “Very Serious,” Average of 11
Tracking Countries, Trends: 1998 2008. Data gathered
in 1998, 2000, 2003, 2006, 2007 and 2008.
44 Q&A — CORPORATE RESPONSIBILITY
Are there common themes AMONG companies demonstrating leadership in this area?
When we ask thought leaders from business,
governments, NGOs and academia which
companies are leaders in the area of CSR or
sustainability, the companies mentioned share
a number of characteristics.
First, they tend to be excellent at CSR or
sustainability reporting. Further, they often
have a very senior person in the company —
usually the CEO — who is passionate about
CSR and publicly personifies the company’s
commitment to doing business responsibly.
Most have also been committed to CSR or
“[The global economic crisis] has stirred
up anti-corporate sentiment more
broadly. Companies of all types are
simply less trusted to act responsibly
on their own.”
sustainability for a long period of time, suggesting
that an established track record is important
to these experts.
Finally, most of these companies are associated
with an initiative or event that clearly communicates what the company stands for. Think of the
Toyota Prius, Shell’s commitment to sustainable
development as a framework for doing business,
SC Johnson’s elimination of CFCs and more
recently its ingredient disclosure initiative, and
GE’s Ecomagination program. All of these are
first-mover examples of leadership in the direction
of embedded sustainability that tend to move
an entire industry to greater performance.
Q
How is the current global economic crisis
affecting companies’ approach to CSR?
The crisis, which began within the financial sector, has stirred up anti-corporate sentiment more
broadly. Companies of all types are simply less
trusted to act responsibly on their own. In this
climate, companies cannot afford to de-prioritize
environmental and social commitments, but they
may want to consider reassessing and realigning
CSR strategies to ensure that consumers’ current
priorities are addressed.
In the corporate sector, this economic crisis is a
true test of leadership. We think that this downturn
will clarify for all stakeholders those companies
that truly believe in responsibility and sustainability,
and those that have half-believed in it.
Q
Q
And how are consumers being affected?
When it comes to forcing a choice between the
economy or the environment, in these difficult economic times the environment naturally gives way
to economic concerns. However, for many consumers, this is no longer an appropriate framework.
In 2007, GlobeScan ran a 10-country survey about
governments going beyond GDP when measuring
national progress. We found that overall, threequarters of the general public wished to see health,
environmental and social progress measured and
tracked by countries alongside economic progress.
This recognition that economic growth can only
be meaningfully assessed within a broader sustainability framework is new, and telling.
Definitions of corporate responsibility
vary significantly by geography.
Most Important Thing a Company Can Do
to Be Seen as Socially Responsible*
What’s the future of corporate
responsibility and sustainability?
We are at a crossroads in the history of CSR.
Through stronger performance and better communications with stakeholders, we think CSR
will continue to be a very dynamic, experimental
and competitive arena that will help differentiate
companies, and improve corporate performance
in innovative ways that can be scaled up.
Q
In this report, we talk about the connection
between responsibility and resiliency. How
have you seen that play out over the years?
We’ve seen that sometimes it takes a major crisis
for companies to realize the true importance of
CSR and it’s only through fundamental changes
to the way they do business that they are able to
get through the roughest periods to ensure their
own long-term survival.
Nike, Shell and Walmart are just a few examples
of companies that recognized a critical need to
demonstrate responsibility at key points in their
corporate history. In all three cases, significant
changes to corporate strategy were required
to improve reputation. All three companies are
clearly better positioned for the future than they
were before their crises.
Treat employees fairly
Quality/safe/
healthy products
Donate to charities
Create jobs/
support economy
Support education
Protect environment
Be honest/trustworthy/
transparent
Charge low/
fair prices
*Unprompted, Top Mention by Country, 2008
WWW.SCJOHNSON.COM
When we’ve surveyed investors from the general
public, they have long agreed that responsible
companies represent less risky investments. We
might expect that any potential for readier access
to equity, given current credit scarcity, would be
another factor contributing to the resilience of
strong CSR performers.
If, however, the expectation-performance gap
doesn’t close and companies cannot demonstrate
(through performance and communications)
that they are committed to responsible business
practices and able to build a better world, then we
may be entering an age of greater accountability.
This would require much more oversight and regulation of corporate behavior. While this wouldn’t
necessarily be a terrible thing in some circumstances, it could reduce corporate commitments to the
bare minimum and relegate CSR to a box-ticking
exercise, diminishing a good deal of the creativity
and innovation that is currently under way.
In any case, it is clear that our most important
stakeholder — the planet — is going to be
increasingly vocal as strains to the climate and
other ecosystems continue. Consequently, whether
you call it CSR, citizenship or sustainability, these
topics will continue to be a critical agenda item
in boardrooms, in government policy and in the
headlines for years to come.
“Our most important stakeholder — the
planet — is going to be increasingly
vocal as strains to the climate and other
ecosystems continue.”
At SC Johnson, we’re committed to setting sustainable
development goals, tracking our progress and reporting
our results. We believe this transparency is fundamental
to our responsibility and our resilience. It’s one of the
reasons why when you reach for any SC Johnson product,
you can feel good about it.
Waste and Emissions Reduction
Greenhouse Gas Reduction — U.S.
GOAL: By 2011, for global manufacturing reduce
combined air emissions, water effluents and solid
waste by 50 percent versus the 2000 baseline,
as a ratio to production.
GOAL: By 2011, reduce on an absolute basis
U.S. GHG emissions another 8 percent versus
the 2005 baseline.
-33.71%
2006
2007
-40.5%*
2007
7%
2008
-40.5%
2008
ACHIEVED
2009
0
PAGE 23: In 2007/08, SC Johnson used 11 percent more “Better” and
“Best” materials than in 2006/07.
4%
best
2%
14%
0 rated materials
15%
10
20
60
70
8
4
0
4
8
12
16
Global Renewable Energy
GOAL: By 2011, reduce GHG emissions for all
worldwide factories by 12 percent versus the
2000 baseline.
GOAL: By 2011, we want to source 40 percent
of our total electricity usage worldwide from
renewable energy.
2007
-9.4%
Results for
2007/08
2008
32%
better
51%
acceptable
(kg of raw material by EC, 37 chemical
and 12 component material types)
ACHIEVED
ACHIEVED
-15%
-27%
2009
2010
0
3
6
9
12
2006
28%
2007
28%
36%*
2008
2010
15
18
21
24
27
30
0
10
20
30
40
Indirect energy consumption by source:
4% 1%
6%
34%
gasoline LPG
purchased
renewable
electricity
palm shells
18%
landfill gas
ata provided in this report was prepared following the 2002 Global Reporting Initiative
D
(GRI) Sustainability Reporting Guidelines except for financial and production data, which
is business confidential and considered proprietary by this private family enterprise.
— Dr. H. Fisk Johnson, Chairman and CEO, S. C. Johnson & Son, Inc.
50
*See page 27 for further details about these results
Direct energy consumption by source:
Questions about this report should be directed to Kelly M. Semrau, Vice President —
Global Public Affairs and Communication, at [email protected] or 262-260-2440.
For further information regarding SC Johnson and its legacy of sustainability
leadership, please visit www.scjohnson.com
46 QUICK REFERENCE
20
2009
GOAL
Baseline
2000/01
(kg of raw material by EC, 5 base categories)
50
Greenhouse Gas Reduction — Worldwide
2006
acceptable
40
best
better
73%
30
2010
GOAL
10%
-17%
2009
2010
0 rated materials
-2.4%
2006
GOAL
QUICK REFERENCE
PAGES 24-27: By 2008, SC Johnson had achieved an exciting milestone
— we surpassed our global and U.S. greenhouse gas emission-reduction
targets for 2011.
GOAL
SC Johnson Metrics 2009
3%
kerosene
63%
4%
fuel oil
natural gas
1%
diesel
65%
purchased
electricity
1%
purchased
steam
2008 contributions to UNICEF from the
Baygon® brand to support vaccinations,
vitamin supplements, distribution of
mosquito bed nets and other activities:
OUR MALARIA EDUCATION
PROGRAM IN SOUTH AFRICA
has directly reached over
$158,000
1,000,000 people.
PAGE 36: Our community leadership encompasses time and financial
support — more than $180 million in contributions over 10 years.
PAGE 40: We remain highly committed to ensuring consistent safety,
health and environmental conditions at all our facilities.
PER 200,000 HOURS WORKED
PAGES 28-33: We’re committed to helping protect families from insects
that can carry diseases.
40
35
Days Lost
Medical Incidents
Lost Time Accident Rate
30
25
20
15
10
5
0
89/90 90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08
General Manager Participation
On Community Boards
Employee
Volunteerism
100
90
80
70
60
50
40
30
20
10
0
87%
74%
Developed
Markets
100
90
80
70
60
50
40
30
20
10
0
79%
Developing
Markets
Total
YEARS
78%
75%
77%
THIS BOOK IS
Produced Responsibly
Developed
Markets
Developing
Markets
Once again in 2009, SC Johnson is making a contribution through
Conservation International (CI) to help offset the carbon emissions
associated with printing and distributing our Public Report.
Total
Our contribution this year will continue to support the restoration
of degraded lands in southwest China, a region that has tremendous
endemic plant diversity and is home to half of China’s birds and mammals.
According to CI, in addition to restoring native forest, the effort will produce
timber resources and fuelwood for local communities, foster employment,
and provide a habitat for the red panda and the Bengal tiger.
Worldwide Corporate
Philanthropic Contributions
Rolling cumulative contributions (includes SC Johnson Fund, Inc.) in U.S. dollars.
$190,000,000
Additionally, this report is printed on paper that has a postconsumer
recycled percentage of 15 percent. The electricity used in its manufacture
was offset by clean, renewable wind power.
$180,000,000
$170,000,000
$160,000,000
$150,000,000
$140,000,000
This saved more than 4,300 gallons of wastewater flow and avoided
more than 3,600 pounds of greenhouse gas emissions being generated.
The savings equate to not driving 3,657 miles or to planting 251 trees.
$130,000,000
$120,000,000
$110,000,000
$100,000,000
$90,000,000
1998
1999
WWW.SCJOHNSON.COM
2000
2001
2002
2003
2004
2005
2006
2007
2008
This book also uses eco-friendly UV inks, low-VOC-emitting press solutions
and coatings, which produce virtually zero VOCs.
Cert no. BV-COC-080715
S. C. Johnson & Son, Inc. ©2009
Printed on Paper Containing Post-Consumer Fiber
Printed on paper manufactured with renewable wind power.

2009 pUBlIc report

Transcription

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