2011 Corporate Responsibility Report

2011
CORPORATE RESPONSIBILITY REPORT
Helping Our World Flourish
At Newell Rubbermaid, we’re working every day to
build a better, more sustainable world – one in which
all of our stakeholders flourish. Our approach? Products
with less environmental impact. Practices that reduce
consumption of energy, water and resources. Broadened
opportunities that enable our people to achieve better
futures. And investments of talent and funds that build
stronger communities. Explore all the ways that Newell
Rubbermaid is Helping Our World Flourish.
2011 CORPORATE RESPONSIBILITY REPORT
1
About This Report
In this report, we have included material that covers our most significant business, social and environmental initiatives, with
a particular emphasis on topics that reflect the current strategic direction of our Company.
This year’s report utilizes December 31, 2011, data unless otherwise noted. The report reflects the scope of our businesses
around the world.
We identify our primary stakeholders as employees, shareholders, customers, suppliers, consumers and communities where
we operate facilities. Our interaction and dialogue with these stakeholder groups is ongoing and takes a variety of forms
that include:
• Consumer research and focus groups
• Customer surveys and sales meetings
• Employee communications and engagement initiatives
• Supplier surveys and meetings
• Investor quarterly conference calls and an annual shareholder meeting
• Community meetings through the Newell Rubbermaid Foundation
In addition, we welcome feedback from our stakeholders about this report.
Contact Information
Newell Rubbermaid Inc.
3 Glenlake Parkway
Atlanta, GA 30328
[email protected]
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2011 CORPORATE RESPONSIBILITY REPORT
Table of Contents
Products
19
At Newell Rubbermaid, we’re
addressing global megatrends
that create big challenges for
our world and big opportunities
for our business.
We help the places where we live
and work flourish through gifts of
our products and dollars and
sharing our time and talents.
Our HYGEN™
commercial
products help to
create healthier
environments,
while also saving
water and reducing
chemical use.
Management 3
Purpose
5
The Growth Game Plan is helping
us accelerate into a bigger, fastergrowing, more global and more
profitable company.
Planet
17
Philanthropy
An annual Energy Summit
and an online Energy
University are two of the
effective strategies we have
deployed to reduce our
annual energy use.
The Newell Rubbermaid
Employee Experience is
a seamless cycle that
creates a culture in
which individuals can
grow with our business.
People9
*
All numbers based on 2011 data.
Professional exempt employees.
†
25
MANAGEMENT MESSAGE
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2011 CORPORATE RESPONSIBILITY REPORT
Michael B. Polk, President and Chief Executive Officer
At Newell Rubbermaid,
our vision is to be a
global company of
Brands That Matter™
and great people, known
for best-in-class results.
TO OUR STAKEHOLDERS:
We are building Newell Rubbermaid into a larger, fastergrowing, more global and more profitable company. We
will achieve that ambition through sharper portfolio
choices and strengthened capabilities as defined in our
Growth Game Plan. Economic development in countries
around the world represents a significant portion of this
opportunity. For example:
• Globally, more than a million people move to mega-cities
each week. This is leading to an incredible construction
boom – more steel needs cutting, more offices need
cleaning, more apartments need building. Our Tools and
Commercial Products businesses offer solutions for each.
• Over the next 15 years, the global middle class will more
than double in size, from 2 billion today to nearly 5 billion,
many of whom will seek broader access to education. Our
writing and classroom technology tools offer solutions
for those new students.
These major shifts in the world’s consumption patterns
create big challenges for society – creating stress in resource
availability and sometimes compromising the quality of those
resources. Growth represents a tremendous opportunity for
Newell Rubbermaid, but with that opportunity comes big
responsibility. We recognize that as our business grows, our
impact will grow unless we take steps through our brands and
our business systems to mitigate as much of our growth-driven
impact as possible.
At Newell Rubbermaid, we are well-positioned to drive
sustainable growth by building our brands and developing
our business systems in ways that begin to address these
challenges. We do so today in our brands with innovations
that reduce water and chemical consumption in commercial
cleaning, or provide new creative ways to encourage and
enable recycling at home. We do so today in our business
systems by reducing waste, conserving water and reducing
carbon impacts.
This cycle of challenge and opportunity is our corporate
responsibility. By building a more sustainable business
model we can help sustain the world around us and live
up to our purpose: to help people flourish every day where
they live, learn, work and play.
We look forward to keeping you updated regularly on
our progress.
Michael B. Polk
President and Chief Executive Officer
PURPOSE
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2011 CORPORATE RESPONSIBILITY REPORT
HELPING OUR COMPANY FLOURISH
Newell Rubbermaid is one of those increasingly rare companies that has found a way to flourish for more than 100 years.
Our roots go back to Ogdensburg, New York, on the St. Lawrence River in 1903, when rivers were central to trade and
transportation. Our first products were something for
which people had a real need – curtain rods. Other
companies made curtain rods too, but we improved
the performance of ours by creating a rod that did
not rust.
Our products today follow the same model of the
curtain rod. We make things people need – pens,
cookware, drills, strollers, hairbrushes and much more
– but through innovation, we improve design and
performance. During the past century, we have
moved with the centers of trade and transportation
– first to the Midwest with the rail system and then
to Atlanta, a hub for highways and airways.
Newell Rubbermaid helps
people flourish every day
where they live, learn,
work and play.
We are a company that adapts and grows by upholding
some lasting principles. Our culture is defined by an
entrepreneurial spirit that is pervasive and global. We
encourage our people to make an impact, to take action
and responsibility. We are large, but still flexible enough
that one person can make a difference in the Company.
OUR VALUES
The values of Newell Rubbermaid set a standard for employees and are representative of our corporate brand:
Our Entrepreneurial
Spirit Ignites
Growth
We encourage everyone to
take responsibility, to take
action and to grow with
integrity. We grant people
the freedom to operate
within our strategic
framework – ensuring a
strong balance of creativity,
autonomy and disciplined
decision-making. We strive
to do the right thing for all
stakeholders.
Our
Interdependence
Drives Success
We foster teamwork and
collaboration within our
business, the marketplace
and our communities around
the world. We know that
individual success is linked
to the success of the whole
– our Company, our society,
our planet. We create and
nurture relationships that are
built on respect and rapport.
We Thrive
Through
Innovation
We deliver best-in-class
results by innovating our
processes, business models
and products. We realize
that if we are not evolving,
we are not succeeding. Our
innovations are driven by
meaningful insights that
help us adapt to an
ever-changing world.
Our Brands
Inspire Passion
We love our brands.
Consumers love them too,
because we give them
something that matters. We
give them more than a
product – we give them a
way to be better at what
they do. Our employees
share this passion for and
love of our brands, and the
experiences that consumers
have with them – it’s what
drives us.
We Bring What
Matters to
Our Work
We throw our whole selves
– our expertise as business
people and our experience
as human beings – into our
work. By bringing our lives
to bear on our brands, we
grow personally and
professionally while making
our brands meaningful
beacons that endure. When
we bring what matters to
work, we grow what matters
to the world.
PURPOSE
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2011 CORPORATE RESPONSIBILITY REPORT
Newell Rubbermaid At-A-Glance
19,900
Our Key Brands
Approximate Employees Worldwide
Our Facilities
We are headquartered in Atlanta,
Georgia, USA, with manufacturing
facilities and offices located around the
world, including in North America; South
America; Europe, Middle East & Africa;
and Asia Pacific. Our products are sold
in more than 100 countries globally.
$120
Our Global Market
Billion
+
For Top Categories
The new refillable Sharpie Stainless Steel
Permanent Marker™. It’s the most elegant
Sharpie yet, and its ink cartridge can be
replaced over and over again for years
of use.
Our Operational Structure
Our Purpose
Business Segments*
Newell Rubbermaid helps people
flourish every day, where they live,
learn, work and play.
• Tools
• Commercial Products
• Writing
• Baby & Parenting
• Home Solutions
• Specialty
* (as of 12/14/12)
Our Customers
• Mass Merchandisers
• Discount Stores
• Home Centers
• Warehouse Clubs
• Office Superstores
• Commercial Distributors
PURPOSE
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2011 CORPORATE RESPONSIBILITY REPORT
Economic Sustainability
Writing the Next Chapter of Growth: The transformation of
Newell Rubbermaid dates back six years, when we began
building Brands That Matter™ and created a foundation
for insight-driven innovations. During this time, we also
restructured our portfolio and rationalized our operational
footprint. Today, we have a stronger, more tightly focused
portfolio of leading brands with a gross margin structure
that allows brand investment. Now, we are ready to write
the Company’s next chapter – one in which growth will be the primary
source of long-term value creation.
We have introduced a bold, multi-year strategy that optimizes the whole
Company, not just its parts. The Growth Game Plan is designed to unleash
growth by focusing our resources on those opportunities where
we are best positioned to win. The Growth Game Plan is built around Five
Ways to Win:
• Make Our Brands Really Matter: We will grow our brands by refocusing
on the highest-impact growth levers.
• Build an Execution Powerhouse: We will strengthen the organization’s
capabilities where it matters most.
• Unlock Trapped Capacity for Growth: We will continue to simplify the
business and direct increased resources to consumer- and customer-facing
activities that create demand.
• Develop the Team for Growth: We will build a performance culture
based on output.
• Extend Beyond Our Borders: We will build a truly global organization,
including much more scale on the ground in key emerging markets.
$5.86
Billion
2011 Total Sales
$733.6
Million
2011 Normalized Operating Income
$1.59
2011 Normalized Earnings Per Share
$0.29
2011 Dividends Per Share
Please click here for a Reconciliation of
Non-GAAP Financial Measures from page 84
of our 2011 Annual Report.
2011 Sales By Business Segment
Home Solutions
$1,710 Million
Writing
$1,399 Million
Tools
$779 Million
Commercial Products
$741 Million
Baby & Parenting
$680 Million
Speciality
$553 Million
PURPOSE
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2011 CORPORATE RESPONSIBILITY REPORT
Governance & Ethics
Newell Rubbermaid is a publicly held company that trades on the New York
Stock Exchange under the ticker symbol “NWL.” We are committed to applying
the highest standards of corporate governance and ethics to our organization
with an emphasis on transparency and accountability.
The Board of Directors is our highest governing body and is comprised of
12 directors, the majority of whom must be independent. Currently, the
Chairman of the Board is a non-executive of the Company. There are five
Board committees: Audit, Chairman’s Executive, Nominating/Governance,
Organizational Development & Compensation and Special Finance. The Board
conducts an annual review of its own performance to determine whether the
Board and its committees are functioning effectively and are in compliance
with its Corporate Governance Guidelines.
The following documents on our corporate website provide more detail about
the policies and processes associated with our corporate governance and
ethical conduct:
•
•
•
•
•
•
Corporate Governance Guidelines
Code of Ethics for Senior Financial Officers
Communications with the Board of Directors
Reporting Allegations Relating to Accounting Matters
Our Code of Conduct and Ethics (North America, Latin America, APAC)
Code of Business Conduct and Ethics (EMEA)
http://ir.newellrubbermaid.com/governance
Board of Directors
(as of 12/14/12)
Michael B. Polk
President and Chief Executive Officer
Michael T. Cowhig2*
Chairman of the Board – Newell Rubbermaid
Inc. and former President, Global Technical and
Manufacturing – The Procter & Gamble
Company
Thomas E. Clarke2,3,4*
President of New Business Ventures – Nike, Inc.
Kevin C. Conroy3
President, Univision Interactive Media, Inc. –
Univision Communications, Inc.
Scott S. Cowen1*,2,5
President and Seymour S Goodman Memorial
Professor of Business – Tulane University
Elizabeth Cuthbert-Millett3,4
Private Investor
Domenico De Sole1
Chairman – Tom Ford International
Ignacio Perez Lizaur1
Former Executive – Wal-Mart Stores, Inc.
Cynthia A. Montgomery3
Timken Professor of Business Administration –
Harvard University Graduate School of Business
Steven J. Strobel1,4,5
Former Executive Vice President and Chief
Financial Officer – BlueStar Energy Solutions
Michael A. Todman1,4
President – Whirlpool International
Raymond G. Viault2,3*,4
Former Vice Chairman – General Mills, Inc.
Audit Committee
Chairman’s Executive Committee
3
Nominating/Governance Committee
4
Organizational Development & Compensation
Committee
5
Special Finance Committee
* Denotes committee chair
1
2
PEOPLE
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2011 CORPORATE RESPONSIBILITY REPORT
HELPING OUR PEOPLE FLOURISH
For Newell Rubbermaid, our people exemplify the intersection
of corporate responsibility and business strategy. Simply put,
when our workforce of more than 19,900 individuals grows
and flourishes, our Company follows suit.
How we approach, treat and value our employees is inextricably
linked to our commitment to be faster-growing, more global
and more profitable. It is only through the efforts of our people
that our Growth Game Plan moves beyond a nice document
and comes to life to drive dynamic, vital business expansion.
Moreover, our purpose as a Company to help people flourish
every day must first be applied to our own people before
external stakeholders can successfully realize the benefits.
PEOPLE
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2011 CORPORATE RESPONSIBILITY REPORT
Strategy
As our business began transitioning to our new growth
strategy in 2011, we wanted to tap into the enormous
opportunities our world’s changing communication
infrastructure offered. We realized it was critical to build
a strategically aligned culture supported and enhanced
with communication dialogue. For the first time, we had
four “generations” in one workplace, and it was clear our
global employees didn’t all have the same needs – we had
to develop knowledge, tools and skills to change how we communicated with our
varied internal stakeholders. Our reenergized commitment revolves around the
idea of meeting and partnering with individuals as they journey in relationship to
the Company. On any day, it might look like a blog post or a Facebook comment.
It could be tapping into a worldwide video town hall meeting or it could be a
personal visit via video conference. The plethora of available opportunities to
improve our communication connections led us to the concept of the Newell
Rubbermaid Employee Experience, which is focused on attracting, engaging and
growing the right talent around the world.
Awards
Top Workplace
Atlanta Journal-Constitution
Best Places to Work in Georgia
Georgia Trend Magazine
Best Places to Work
Charlotte Business Journal (NC)
Employer of Choice
Week of Srem District newspaper (Poland)
Best Place to Work for LGBT Equality
Human Rights Campaign Corporate Equality
Index (CEI)
During the past 12 months, we
have invested resources to actively
develop the concept of the Newell
Rubbermaid Employee Experience.
A dedicated Employee Experience
team is in place, with functions
devoted to talent acquisition
(attract), employee engagement
and inclusion (engage) and
training and development (grow).
Though many elements and
programs are still in their early
phases, all are united by a clear
goal to help our people flourish
where they work by creating a
performance culture that is at
once strategically aligned and
globally cohesive.
We envision the Newell Rubbermaid
Employee Experience as a seamless
life cycle that successfully evolves as
an individual moves through his or
her career with the Company.
PEOPLE
2011 CORPORATE RESPONSIBILITY REPORT
10
Winning With Great Talent
Our Growth Game Plan identifies building a global,
high-performance talent base as one of our 5 Ways to
Win. To do so, Global Talent Acquisition serves as a
talent solution provider to attract and secure a
diverse, highly qualified and culturally aligned
employee base focused on helping us bring the
Growth Game Plan to life.
The decision to house the majority of our recruiting
activities internally is a strategic one designed to
ensure there is a cultural fit between candidate and
Company. Our approach is intensely focused on
identifying people who demonstrate a natural ability
to embrace our corporate values.
Work With Us
Find out more about working for Newell Rubbermaid, including
information on our Total Rewards benefits package at:
www.newellrubbermaid.com/Careers
Global Talent Acquisition closely mirrors how we go
to market with a purposeful emphasis on outreach
in emerging markets. Developed markets are a
cornerstone, but we continue an ongoing, crucial
quest to locate the finest talent, some of whom
may not yet be familiar with Newell Rubbermaid
and our brands. We commit to being at the
forefront of attracting the highest caliber people
from across the globe.
It is important to note that attracting talent is both an internal and an external proposition. We envision no better pool of
high-performing, culturally aligned candidates than our own employee base, but when we do recruit externally, we are
committed to taking full advantage of the wide variety of new and evolving communication and social networking
resources as well as traditional channels.
PEOPLE
2011 CORPORATE RESPONSIBILITY REPORT
Driving Performance Through Engagement
Our Global Engagement and Inclusion initiative is based on the simple theory that the more employees invest
their hearts and minds into their careers, the greater the benefit individually as well as for Newell Rubbermaid.
Companies that effectively engage employees generate a 22 percent higher average return for their shareholders,
research has shown. And, not surprisingly, these companies experience higher productivity and lower turnover
rates among their workforce.
An emotionally and intellectually engaged employee
consistently speaks positively about the organization,
has an intense desire to be part of the organization
and exerts extra effort that contributes to sustained
business performance and success. In short, engaged
employees are great workers, and we are committed
to world-class standards of employee engagement as
we execute the Growth Game Plan.
During 2011, we commissioned a third party to
conduct our first global employee engagement
survey to capture employee opinions, perceptions and reactions. With a response rate of more than 75 percent,
we found our overall employee engagement score was well above industry average, but below our goal of best
global employers.
The 2011 survey provides a baseline, internal measurement for future surveys, which we have committed
to conduct annually. We also are using the data to benchmark against best-in-class companies, analyze
by sub-demographic and regional groups and, most importantly, drive our decision-making as we develop
employee engagement initiatives. Survey results provided feedback about how employees perceive
Newell Rubbermaid’s current culture and how well those perceptions align with our corporate positioning.
To date, data have been shared with leadership teams and employees across the Company to continually
enhance employee engagement globally throughout Newell Rubbermaid and yield further best-in-class
employee experiences.
EMPLOYEE COMMUNICATION
Though we have many ways to drive employee engagement, effective communication is among the most
important. This is an area where we are particularly focused on evolving our behavior as an organization.
Traditionally, employee communication in many companies takes a top-down, centrally controlled, one-way
approach...and generally fails to excite engagement.
The fact is, the world now communicates differently, and so must we. Our challenge is to shift how we
communicate, and move from one-way information dissemination into a multidimensional dialogue
that flows through the Company organically. We are committed to utilizing multiple channels to create
convenient, accessible, 24/7 communications so employees can share more meaningful, timely and authentic
user-generated content in an open and honest dialogue that builds trust and empowers employees.
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PEOPLE
12
2011 CORPORATE RESPONSIBILITY REPORT
Engagement & Inclusion
Newell Rubbermaid has long fostered a workplace that values a diversity of functions, teams, processes and
qualities and includes every individual to help drive business success. As our new culture takes shape, a diverse
mix of players remains important, but making sure everyone plays on the same team is paramount. We already
have five Employee Resource Groups (ERGs) in place and will connect even more closely with them as we
develop our engagement and inclusion agenda based on employee input and feedback.
Black Employees Achieving,
Connecting & Operating in
Newell Rubbermaid
Hispanic Organization
for Latinos at Newell
Rubbermaid
Newell Rubbermaid
Asian American
Professional Advocates
Out and Proud for Equality
at Newell Rubbermaid
Mission
Mission
Mission
Mission
Mission
BEACON is committed to
making Newell Rubbermaid
an employer of choice for
Black employees globally.
To create an Hispanic
employee resource group
that will support individual
growth and business
initiatives that promote the
richness of our culture.
NAAPA’s mission is to support
an inclusive and diverse
environment to recruit, develop
and retain Asian American
employees in order to deliver
best-in-class results and build
Brands That Matter™.
To promote an open and
accepting work environment for
Newell Rubbermaid’s lesbian,
gay, bisexual, transgender
employees and their allies
through education, networking
and workplace collaboration to
better reach the LGBT community as potential customers,
consumers and employees.
To engage employees in
making Newell Rubbermaid
an employer of choice and
building Brands That Matter™
for women throughout
the world.
Objectives
Working together, we have
four key objectives:
•Workforce: Improve the
recruitment of Black
employees in Newell
Rubbermaid.
•Workplace: Improve the
retention and development
of Black employees in Newell
Rubbermaid, and create an
inclusive environment
where Black employees can
contribute to the success of
Newell Rubbermaid and be
rewarded and recognized.
•Marketplace: Provide
brand-building awareness
with the Black consumer.
•Community: Align with
Newell Rubbermaid's
Investing in Community
initiative, with a focus on the
Black community.
Objectives
To identify areas for
improvement in the
attraction, retention and
engagement of Hispanic
employees and to assist
Newell Rubbermaid in our
quest to more effectively
market our brands to the
Hispanic consumer.
Objectives
The objectives of NAAPA
are to improve the retention
and development of Asian
Americans within Newell
Rubbermaid by leveraging
our resources to:
•Workforce: Recruit and
develop diverse talent that is
reflective of the marketplace.
•Workplace: Develop Asian
cultural awareness within
the Newell Rubbermaid
community.
•Marketplace: Assist Newell
Rubbermaid to become a
more effective marketer
among Asian Americans in
the marketplace.
•Community: Engage in Asian
American-focused community
programs and initiatives to
introduce Newell Rubbermaid
and its powerful brands.
Objectives
Provide a forum for
LGBT employees and
allies to support:
•Workforce: Attract, retain
and develop LGBT talent.
•Workplace: Promote respect,
acceptance and safety through
education and awareness.
•Marketplace: Support policies
and programs that drive
change and collaboration
with our partners.
•Community: Develop
outreach programs and
consumer insights.
Women in Newell
Rubbermaid – Working,
Inspiring, Networking
Objectives
Improve retention and
development of women
in Newell Rubbermaid by
leveraging the women’s
resource group to:
•Gain consumer and
employee insights.
•Grow leaders.
•Increase employee
engagement and
external activism.
PEOPLE
2011 CORPORATE RESPONSIBILITY REPORT
Creating a Performance Culture
As our growth strategy evolves, there is a compelling
opportunity to create a win-win situation for our
people and our business. We intend to turn this
opportunity into reality by fostering a performance
culture that is the norm, not an exception. This culture
places an emphasis on accountability, motivation,
contribution and reward. By aligning individual goals
with our Growth Game Plan, we can ensure individuals
grow personally and professionally as our business
grows. In short, Newell Rubbermaid will be a place
where people can win.
Training and Development programming is an important element in creating this culture of
performance. Our focus is primarily in five areas: systems and process, product training and
development, strategic thinking, people leadership and functional excellence.
As with employee communication, we are taking a new, more multidimensional approach to
learning. Rather than limiting instruction to classrooms, we are seeking ways to build growth in the
everyday job experience, as well as to deliver training through new technology vehicles. Similarly,
we will not measure our progress by hours of training delivered, but by more meaningful metrics
such as the number of internal promotions and how overall business goals are met.
Growth also means identifying and grooming leaders throughout the Company. We have defined
leadership at Newell Rubbermaid as sharing responsibility and taking accountability for unleashing
the potential of our people, our brands, our Company’s performance and the communities in
which we operate. Our leaders will be known for integrity, innovation, global perspective and other
clear qualities that set them apart. We will identify future leaders by identifying people who are
authentic, inspiring, adaptable, curious and courageous – all attributes that align with our vision
and values.
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PEOPLE
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2011 CORPORATE RESPONSIBILITY REPORT
Employee Health & Safety
Our health and safety goal is simple – provide a safe
work environment for all of our people and eliminate
all incidents associated with Newell Rubbermaid
activities, products and services. We will accomplish
this through leadership commitment, following a
well-defined, proactive safety process, acting globally
and thinking locally, promoting involvement, and
recognizing and building on our successes. Safety
must be present in every aspect of our product life
cycle from the suppliers with whom we partner, to the
employees who build and distribute our products, to
our customers that sell our products, and finally to the
consumer who uses our products.
To track the results of our efforts we will use the Global Recordable Incident Rate as our lagging
metric and Safety Excellence And Leadership (SEAL) score as our leading indicator. Our historical
performance and goals are as follows:
Global Recordable Incident Rate
(Goal: Reduce Global Recordable Incident Rate to <1.0)
Global SEAL Score
(Goal: Improve the SEAL Score to >80%)
4
3
2005
2.5
2007
64%
1.8
1.2
2009
59%
60% 57% 66% 70%
77%
.85 .71
2011
Global Recordable Incident Rate measures the total recordable
incidents for every 100 employees working 200,000 hours per year.
The base for recording follows the United States Occupational
Safety and Health Administration (OSHA) total recordable
incident reporting criteria.
2005
2007
2009
2011
SEAL is an incident prevention roadmap that establishes a
consistent set of safety expectations for all of our global locations.
The assessment is a diagnostic tool. The SEAL score is the
percentage of points achieved versus points possible on the
assessment.
PEOPLE
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2011 CORPORATE RESPONSIBILITY REPORT
Supplier Diversity
Diversity at Newell Rubbermaid extends to our
suppliers. By partnering with a diverse set of suppliers,
we are able to better understand and serve our global
and diverse consumer base. Our Supplier Diversity
program ensures that diverse businesses have a fair
and equitable opportunity to participate in any
outsourced Newell Rubbermaid projects. Ultimately,
robust supplier diversity practices contribute to our
ability to provide innovative, quality products to our
consumers and grow our Brands That Matter™.
For suppliers, the opportunity to work with a large, global public company can be a game changer.
“Working with Newell Rubbermaid has been mutually beneficial,” explains John Rupcich, President
and CEO of Life Style Staffing. “It has allowed us to grow from a local company to one with a global
reach. We are able to work with consumers around the world, which never would have been possible
without this partnership.”
We work with seven major types of diverse suppliers: Disadvantaged Business Enterprise, Historically Underutilized Business
(HUB), Minority- and Women-Owned Business Enterprise, Minority
Business Enterprise, SBA 8(a) Business Development Program,
Small Disadvantaged Business Enterprise and Woman-Owned
Business Enterprise. The National Minority Supplier Development
Council (NMSDC) or the Women’s Business Enterprise National
Council (WBENC) must certify suppliers in order to be considered
by our program.
Supplier Diversity Annual Spending
(in millions of dollars)
2011
$54.4
2010
2009
$38.4
$21.0
In addition to these certifications, we look for suppliers who echo
2008
$20.5
our corporate values by: demonstrating acumen for product
innovation; fostering a collaborative culture; offering best-in-class
pricing, quality and service; and continually investing to improve
people, processes, products and safety. To learn more about partnering with Newell Rubbermaid,
please go to Do Business With Us at www.newellrubbermaid.com/OurCompany.
“At Newell Rubbermaid, the perspective that comes from diverse experiences and backgrounds unlocks new ideas
and creates value across every part of our business. We are committed to growing with suppliers who reflect the
diversity of the marketplace.”
Michael Polk, President and Chief Executive Officer
PLANET
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2011 CORPORATE RESPONSIBILITY REPORT
HELPING OUR PLANET FLOURISH
As a global marketer of consumer and commercial products that
touch the lives of millions of people around the world every day,
Newell Rubbermaid is uniquely positioned to help create a more
sustainable world. Our emphasis on being a responsible steward
of the environment enables consumers to fulfill their aspirations
to live and work more sustainably. Moreover, our commitment
to high levels of environmental performance in the design,
manufacture, marketing and distribution of products conserves
resources and reduces unwelcome impacts.
To surpass mere incremental improvements and achieve
significant environmental gains requires both product and
process innovation. Today at Newell Rubbermaid, we’re
designing products and optimizing business processes to
minimize inputs and impacts on the environment.
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Our Commitment to Environmental Sustainability
Our Environmental Sustainability Strategy implements a holistic, centrally led governance and management approach
that focuses on developing internal, cross-functional networks and programs in two key areas: operations and supply
chain, and products and packaging. We support both areas with interactive dialogue, purposeful collaboration and
valuable partnerships with internal and external stakeholders.
Through a relentless focus on more sustainable products and more sustainable operations, we’re doing our part to
help our world flourish.
We strive to be an eco-efficient company through:
MAINTAINING our commitments to meet or exceed all environmental
requirements and standards applicable to our operations globally; reduce
operational impacts on the environment; and incorporate environmental
sustainability principles into how we conduct business, in accordance with
our code of business conduct and ethics;
ARTICULATING our shared objectives, assigning clear roles and responsibilities,
and appropriately resourcing our environmental sustainability initiatives. We track
our performance and hold teams accountable for results;
STRIVING to integrate environmental sustainability across the entire organization,
including in our business processes, product design, and day-to-day decisionmaking. We use Life Cycle Analysis tools to quantify the environmental impact
of our products throughout all the phases of their development, use and
disposition at end of usable life;
ENGAGING a wide array of stakeholders to foster collaboration and develop
mutually beneficial initiatives and solutions. These stakeholders include
consumers, customers, suppliers, employees, shareholders and the communities
in which we operate; and
EMPOWERING our employees, through education and training, to apply
environmental sustainability principles in their daily work. We encourage sharing
of best practices and provide employees with resources for advancing our
environmental sustainability agenda through activities, including annual
summits and a sustainability-focused online curriculum.
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Sustainable Products
At Newell Rubbermaid, our emphasis on long product
life is a cornerstone of our commitment to design,
manufacture and market sustainable products.
Producing durable products is but one of many ways
we achieve greater eco-efficiency. Our disciplined Life
Cycle Analysis process calculates the environmental
impact of extracting and processing raw materials,
and of the manufacturing, packaging, distribution and
retailing of a product, as well as its disposal at end of
life. Because the choices made at each step of the product life cycle have an effect on the environment, we
embed environmental sustainability considerations across the organization.
Survey data makes clear that substantial majorities of consumers prefer companies that are transparent about
environmental responsibility efforts and that offer environmentally friendly products that minimize packaging
and are easily recycled. We regularly engage with consumers to take the pulse of their needs and expectations
for eco-efficient products, and we leverage those insights into our product development processes. Made to
last – with eco-efficiency in mind – today, more than ever, that’s a Newell Rubbermaid product.
HYGEN™: The Transformational Green Cleaning Solution
In schools, offices, hospitals and other facilities, traditional mop and bucket floor
cleaning systems waste both water and chemicals – and they’re not as hygienic
as they should be. HYGEN™, Rubbermaid Commercial Product’s microfiber cleaning
system, efficiently fights dirt and microbes to maintain healthy environments. Its
microfiber pads can be washed and reused up to 500 times. Introduced in 2011,
the Rubbermaid Commercial Products HYGEN Clean Water System features the
industry’s first integrated water filter built into a mop bucket. Users can continue
mopping with clean water throughout the work day – an innovation that can
reduce water and chemical usage by 75 percent and save thousands of dollars in
annual maintenance costs.
Refill Reuse™ Water Bottles: Delivering Value and Eco-Efficiency
It’s no secret that reusable water bottles are far more environmentally friendly
than single-use bottled water. But containers like the Rubbermaid Premium Chug
Bottle “up the sustainability ante” even further. They are BPA-free, dishwasher and
freezer safe, and they’re made with stain- and odor-resistant Tritan™. A life cycle
analysis conducted in 2011 found that Rubbermaid Refill Reuse bottles have
lower environmental impact across a range of categories – from energy demand,
global warming and toxicity – when compared to virgin aluminum bottles.
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Reveal: More Affordable Floor Cleaning That’s Sustainable Too
The Rubbermaid Reveal™ Microfiber Spray Mop gets floors cleaner – removing
50 percent more dust and dirt than traditional sponge mops – conserves
resources and costs less. In fact, Reveal can help consumers save up to $50
per year in supplies alone. Unlike other cleaning systems with disposable
wipes, Reveal’s microfiber cleaning pad can be used over and over again. And
its refillable spray bottle accepts inexpensive cleaning solutions, or just plain
hot water. That’s eco-efficiency at its best!
The Hidden Recycler: Product Benefits You Can’t Miss
Rubbermaid continues to add convenience to the home recycling category with the Hidden Recycler. Fully washable
and manufactured from 65 percent post-consumer resin, it easily attaches inside a cabinet door to collect recyclables
– keeping countertops clear. This smart, durable recycling solution holds up to 35 uncrushed cans in its five-gallon bag.
ecoUrinal: A Winning Solution That Conserves 40,000 Gallons of Water per Year
With a hygienic, 100 percent waterless design, Rubbermaid Commercial
Products’ ecoUrinal™ conserves 40,000 gallons of water per year, and earns
LEED credits when installed in commercial restrooms. Its economical,
innovative cartridge contains an enzyme tablet that prevents odors – and
the cartridge lasts 10 years. Compared to competitor systems, the ecoUrinal
also saves thousands of dollars in supplies while conserving hundreds of
thousands of gallons of water over its product life.
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Sustainable Packaging
Reducing the size, cost and impacts of product packaging
is a key component of Newell Rubbermaid’s environmental
sustainability strategy. Packaging that is more efficient
creates efficiencies at every phase of the supply chain.
Fewer resources are required when the product is prepared
for sale, and less energy is required for shipment – reducing
greenhouse gas emissions.
Our continued focus on smart packaging solutions
secured new efficiency wins in 2011. Shur-Line reduced
the paperboard retail wrap for its deck staining solutions. Reengineering the product’s bulk pack meant one-third
more units could ship in a much smaller package. These efficiencies more than tripled the number of packs that fit
into a 40-foot container, resulting in substantial savings in energy, greenhouse gas emissions and freight costs.
Packaging improvements were also implemented across our Baby & Parenting product lines. In packaging, simple
changes like thinner cardstock can translate into big savings. Strollers now ship without unnecessary poly bags and
corrugate insert material. Altering the configuration of how a baby swing ships means smaller cartons and reduced
costs. Shipper cartons have also been optimized for high chairs, with nonessential inserts and poly bags removed.
Taken together, these efficiencies produce meaningful reductions in cost, resources and emissions.
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Sustainable Operations & Supply Chain
In 2011, we marked further progress in our journey to
achieve Newell Rubbermaid’s vision of becoming an
eco-efficient company. We implemented new and better
mechanisms to measure the success of our initiatives to
reduce water and energy usage, lower emissions, increase
recycling and reduce the generation of waste.
An important new initiative was the launch of an
Environmental Sustainability Excellence (ESX) program
across six of our facilities to implement a measurable
scorecard system for environmental excellence. The ESX
program helps facility teams achieve both environmental
improvements and business benefits through:
•
•
•
•
Improved environmental compliance and environmental risk management;
Pollution prevention and energy and water conservation, with corresponding cost savings;
Greater levels of engagement with external stakeholders, including customers, consumers and regulators; and
Enhancements to employee engagement and morale, and to the Company’s profile as we attract new employees.
{ A VALUABLE TOOL TO MEASURE ENVIRONMENTAL IMPACTS }
Creating more eco-efficient products starts with evaluating the sustainability of existing products. Life Cycle Analysis (LCA)
quantifies the environmental impact of an item throughout its entire life cycle, from cradle to grave. In addition to
assessing the impacts associated with the production of the product itself, LCA measures both the upstream impact of
the energy and materials used and the downstream impact of the use of a product, as well as its final disposal. In 2011,
we deployed the Newell Rubbermaid Product Environmental Sustainability Calculator, a streamlined LCA tool that uses
data about a product to compute the likely environmental impact at each stage of its life cycle.
CRADLE
Raw Material
Extraction
GATE
Raw Material
Processing
Manufacturing
and Assembly
GRAVE
Packaging and
Distribution
Retail
Use
End of Life
Life Cycle of a Simple Plastic Basket
This chart illustrates how LCA is used to assess the environmental impacts of a simple plastic basket. The tool takes into
account the impact associated with oil extraction and refining, plastic production and delivery to a manufacturing facility,
the energy, water and process materials used to manufacture the basket, the distribution of the item to retail locations, its
use by the end-consumer and its impact upon entering the waste stream at end of life.
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{ HOW GREEN CAN AN OFFICE BE? }
In 2009, Newell Rubbermaid launched the Green Office program to raise environmental
awareness among employees and to build the foundation of our environmental
sustainability culture. The campaign encourages environmentally responsible
employee behavior, promotes the use of energy-efficient and environmentally
friendly office equipment and supplies, and provides training on best practices and
communications to keep employees up to date on our efforts.
Our Green Office champions – called the Green Team – drive sustainable practices
such as increased recycling, carpooling and more eco-friendly purchasing in many
Newell Rubbermaid offices worldwide. The Green Team’s advocacy for Energy
Awareness Month and Green Week activities heighten employee involvement and
commitment to the cause.
{ SUSTAINABILITY TARGET: REDUCED ENERGY CONSUMPTION AND COSTS }
Newell Rubbermaid’s annual Energy Summit and our new Energy University online
training program share energy-efficiency knowledge and best practices across the
organization. The Summit serves as an important venue for networking and strategizing
on common challenges and opportunities. In 2011, Energy University courses reached
personnel at some 28 plants around the globe, covering topics such as fuel principles
in manufacturing, compressed air and HVAC systems management.
In 2011, our conservation focus at several energy-intensive manufacturing facilities
produced meaningful savings – totaling approximately $1 million across five plants.
For example, Rubbermaid’s Mogadore, Ohio, plant cut nearly $420,000 in utility
costs by reducing use during peak demand, lowering natural gas consumption and
earning energy rebates. In East Longmeadow, Massachusetts, the Lenox plant installed
more energy-efficient lighting, furnaces and cooling equipment to generate savings
of $245,000.
{ TAPPING THE BEST MINDS TO EXPAND OUR SUSTAINABILITY SKILLSET }
In 2011 as in other years, Newell Rubbermaid conducted regular ongoing educational
opportunities, training and meetings, such as the Green Product Innovation and
Marketing Summit. We brought in outside experts and industry peers to share their
perspectives on how best-in-class companies pursue brand and product sustainability.
Internal presenters had a platform to provide updates on sustainability integration
across several functional areas, as well as mechanisms to fully embed eco-efficiency
into our Consumer Driven Innovation processes as an element in our focus on developing
green products that best fit consumer lifestyles.
Awards
Excellence in Water Management:
In 2011, the Reynolds Pen manufacturing facility in Sriperumbudur,
Chennai, India was recognized
by the Confederation of Indian
Industry for adhering to best
practices for energy efficiency
and reducing water consumption
during the past three years. The
facility has installed new water
filters, pipelines and washbasin
sensors to prevent water loss, and
was cited for its use of eco-friendly
chemicals in its metallic ballpoint
pen tips.
Outstanding Environmental
Recognitions:
Along with other industry recognition,
Newell Rubbermaid is fostering a
spirit of internal competition and
excitement by sponsoring resource
savings awards such as the Group
President Environmental Excellence
Award. In 2011, Rubbermaid Consumer’s
Mogadore, Ohio, facility received this
corporate-wide kudo for achieving a
25 percent reduction in natural gas
consumption, reducing waste to
landfill by 13 percent and improving
electrical efficiency by 13 percent.
This Newell Rubbermaid initiative will
continue to recognize achievements
in developing and implementing
environmental management systems
to proactively manage and improve
performance in the areas of environmental regulatory compliance and
eco-efficiency.
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Environmental Performance Data
Greenhouse Gas Emissions
Hazardous Waste Generation*
(Tonnes of CO2)
2011
302,713
23,002
2010
20
2011
288,262
23,672
Emissions from Purchased Electricity
Emissions from Natural Gas Combustion
1,197
453
297,436
28,154
2009
(MT)
96
2010
570
77
2009
912
662
622
Incinerated
Landfilled/Disposed
Recycled/Reused
*Waste Management initiatives, resulting in improved
reporting, impacted results for 2011
Water Usage
(m3)
448,097
2011
751,065
504,873
2010
397,076
2009
Water Discharged
844,768
Non-Hazardous Waste Generation
672,738
Water Withdrawn
(MT)
2011
2010
Energy Usage
2009
(MWh)
2011
127,518
2010
2009
153,677
129,214
Electricity
Natural Gas
498,921
482,916
457,727
0
0
0
857
866
1,317
Incinerated
Landfilled/Disposed
Recycled/Reused
8,432
10,264
10,986
PHILANTHROPY
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2011 CORPORATE RESPONSIBILITY REPORT
HELPING OUR SOCIETY FLOURISH
Investing in Community is an essential part of fulfilling our
purpose to help people flourish every day in the places
where they live, learn, work and play. Our investments
range from the time and talents of our employees around
the world to product donations and cash grants to support
a variety of community initiatives. We have three primary
vehicles through which we direct our investments: The
Newell Rubbermaid Foundation, a Corporate Contributions
program and Employee Volunteerism.
Newell Rubbermaid Foundation:
Corporate Contributions:
Volunteerism:
A private foundation wholly funded by
Newell Rubbermaid
Donations, cash or in-kind, that are made
through our Company
Initiatives through which our employees
donate their time and talents
To read more about Newell Rubbermaid’s philanthropy commitments,
please see our Investing In Community website at www.newellrubbermaidfoundation.org.
Newell Rubbermaid Inc.
3 Glenlake Parkway
Atlanta, GA 30328
[email protected]