2. Agenda
• Stepan Company Basics• Stepan Company Basics
• Sustainability at Stepan
• Green Cleaning: Antimicrobials
• Green Personal Care: STEPANMILD® L3
• High Performance Green Cleaning:• High Performance Green Cleaning:
STEPOSOL® MET-10U
3. Stepan Company
• Chemical company with $1.8 billion net sales
• Manufacturers of surfactants, polymers and specialty products
• Publicly traded on the New York Stock Exchange• Publicly traded on the New York Stock Exchange
• Founded in 1932 by Alfred C. Stepan, Jr.
• Over 1,900 employees globally
• Corporate offices in Northfield, IL
• Seventeen manufacturing locations worldwide
• Charter Member of ACC’s Responsible Care and CSPA Product Care
• ISO 9001:2008 Certified
Surfactants
Polymers
Specialty
4. Sustainability Statement
At Stepan, we embrace a broad view of sustainability and
are committed to
– Delivering outstanding, sustainable value to all our
stakeholdersstakeholders,
– Increasing our efficient use of resources and minimizing
our footprint, and
W ki i ti t ith t i– Working as innovative partners with our customers in
pursuit of their sustainability goals.
5. Sustainability at Stepan Company
Innovative Chemical Solutions for a Cleaner,
Healthier, More Energy Efficient World
PartneringPartnering
To MeetTo Meet Reducing OurReducing Our
ImpactImpact
Investing InInvesting In
PeoplePeople
EconomicEconomic
ProgressProgressNeedsNeeds ImpactImpact PeoplePeople ProgressProgress
6. Framework for Guiding Sustainability
R d iR d iP t i tP t i t ReducingReducing
Our ImpactOur Impact
Partnering toPartnering to
Meet NeedsMeet Needs
Investing InInvesting In
PeoplePeople
EconomicEconomic
ProgressProgress
Customer focus Reduced
Safety and
security
Promoting human
h lth d ll b i Continuous
Responsible and
ethical corporate
management
Sustainable
sourcing
Innovation
consumption
, emissions,
and waste
health and well-being
through safety,
policies, products,
opportunity, and
community
Continuous
improvement
Sustainably
advantaged
chemistry
Operational
excellence
Industry
Partnerships
y
connection
7. Sustainability Attributes of Stepan Products
• Household cleaning, personal
care industrial and
Surfactants care, industrial and
institutional cleaning,
agricultural, oilfield
Polymers
• Polyester polyols for insulation,
coatings, adhesives, sealants,
elastomers
S i l
elastomers
Specialty
Products
• Food, health, nutrition, and
specialty markets
8. Sustainability Attributes of Stepan Products
• High performance while
conserving resources and
Surfactants
conserving resources and
energy
• Promoting human health
I l i d h h l
Polymers
• Insulating products that help
conserve energy from heating
and cooling
• Reduced greenhouse gas
S i l
• Reduced greenhouse gas
emissions
• Promoting human wellness
Specialty
Products
Promoting human wellness
• Providing health and nutrition
benefits
9. Sustainably Advantaged Chemistry
B U iBy Promoting
Energy
Conservation
By Using
Biorenewable
ResourcesConservation Resources
By Reducing By Enabling
Environmental
Impact
Product
Compaction
10. Stepan R&D Capabilities
Innovation
Product Process
mer
N M l l
New Processes
Development Technology
Custom
New Molecules
New Formulations
Biobased Materials
and Ingredients
STEPOSOL® MET-
STEPAN-MILD® L3 Sulf(on)ation
Esterification
Quaternization
Alkoxylation
S l h i t
Biobased Materials
New Test Methods
STEPOSOL® MET
10U
AmidationOxidation
Viability?
• Scale new chemistry
• Increase throughput
• Decrease scrap & waste
• Enhance Sustainability
Sustainability
Pre-screen.
Enhance Sustainability
17. The Road to a Green Chemical
1. Consumer Trends
and Needs
2. Green Product
Development 3. One Step Forward
18. Consumer Trends and Needs
1. Quantitative
Sustainability
2. Biobased
Materials
3. Raw Material
Shortages
##
Maintain scorecards
for suppliers from
Improve product
performance with
Diversify feedstocks
and simplify productpp
customers at all
links in value chain.
p
lower footprint.
p y p
lines.
19. Consumers: Developing versus OECD
2011
2012
2011
Global
China
+6%
+5%
%of Age 15+ who
behave ecologically all
or most of the time
50
60
2012
2011
2012
Latin America*
*Argentina,Brazil,and Mexico
0%
+6%
+7%
20
30
40
Take environmental Do research on companies’
+2%
+6%
0
10
Surfactant Contributions to Sustainability
Source: National Geographic Society (NGS) and GlobeScan
Source: GfK, Green Gauge Report, 2012
protection into consideration
when making purchase
decisions
environmental practices
Solvent Replacement
• Hard Surface Cleaners
• Agrichemicals
• Oilfield ChemicalsE S i
Natural Resource Savings
• More concentrated formulations
• Higher cleaning efficiency
• Oilfield Chemicals
• Emulsion Polymers
Energy Savings
• Cold Water Cleaning
21. Metathesis Conversion Technology
Novel Feedstocks for
Differentiated Products
Indigenous oils Metathesis
Metathesis
The interchange of carbon atoms between
a pair of double bonds
+ + a pair of double bonds.
22. Stepan Overall Evaluation Program
15-Month Duration > 400 Derivatives
Synthesized
> 4,000 Physical
Properties
> 1,500
Application Test
Specialty Esters Derivatives MarketsSpecialty Esters Derivatives
Q t
C10 Unsaturated Methyl Esters
O
OMe
Betaines
Markets
Biocides
PC
Quats
C12 Unsaturated Dimethyl Esters
O
O
OMe
MeO
Amine Oxides
PC
L&CP
HSC
Esters
Amides
Modified Triglycerides
O
O
O
R'"
O
O
*
*
n
HSC
Ag
EP&SFAmides
Ethoxylates
O
RO
Unsaturated Triglycerides
O
O
EP&SF
Oilfield
Sulf(on)ate
O
O
O
O
R ' EOR
23. Range of Derivatives and Testing (HSC)
Sulf(on)ation
AnionicsAnionics
Esterification
EstersEsters
Amidation
A idA id
Quaternization
BetainesBetaines
Alkoxylation
NonionicsNonionics
Oxidation
Amine OxidesAmine OxidesAnionicsAnionics
~ 72~ 72
EstersEsters
99
AmidesAmides
~ 13~ 13
BetainesBetaines
~ 38~ 38
NonionicsNonionics
˜ 23˜ 23
Amine OxidesAmine Oxides
~ 23~ 23
Screened 178 Derivatives from Metathesis Feed
Identified 14 Candidates for HSC Testing
Anionics, Nonionics, Amphoterics, , p
HSC Performance, Market Potential
First Commercial Product:First Commercial Product: STEPOSOL® MET‐10U
d C 0 idUnsaturated C10 DMA Amide
24. The Hurdles (A Partial List)
Market Launch
Regulatory
Intellectual Property
Collaboration
• Timing
Terms
Price + Performance
• $10s MM
• Multi-year R&D
• $1s MM
Regulatory
• $1s MM
• Persistence
• Terms
• Goals
y
26. STEPOSOL® MET 10-U
The Value Proposition
• Non-VOC
• Readily biodegradable
• Naturally-derived
• DFE recommended• DFE recommended
• Effective in aqueous form (~5%)
• 75% BCI
O
N O
–
H
VOC
Listed Carcinogen
Inhalation Hazard
VOC
Embyrofetotoxin
Corrosive (pH >12)
29. Aqueous Latex Brush Cleaner
Screening Test: 5% MET-10U versus Mineral Spirits
Substrate: Professional Latex Paint BrushSubstrate: Professional Latex Paint Brush
Soil: White Latex Paint Dried Overnight On Brush
1 Coated Brushes and 2 In Process 3 Completed1. Coated Brushes and
Cleaning Solutions
2. In Process 3. Completed
MET-10U Clean as New
STEPOSOL®
MET-10U
Mineral
Spirits
STEPOSOL®
MET-10U 5%
Mineral
Spiritsp
30. Auto Care: Insect and Tar Removal
STEPOSOL®
MET-10U 1%
Commercial
Bug Remover
Commercial
Bug Remover
STEPOSOL®
MET-10U 1%
CommercialCommercial Commercial
Tar Remover
40% Solvent
Commercial
Tar Remover
40% Solvent
STEPOSOL®
MET-10U 1%
STEPOSOL®
MET-10U 1%
31. Permanent Marker Removal – Aqueous
Screening Test: 1% MET-10U (96% water) versus Commercial Products
Substrate: White Dry-Erase Board (10” by 12”)
Soil: Black Sharpie® Permanent MarkerSoil: Black Sharpie Permanent Marker
After
Wiping
Sprayed with
Products p gProducts
32. Clearing the Hurdles and Entering
Markets with Metathesis Derivatives
Specialty Esters Markets
Derivatization
C10 Unsaturated Methyl Ester
C12 Unsaturated Methyl Ester
O
OMe
O Consumer
Products
Derivatization
Screening
Scale-upUnsaturatedDibasic Methyl Esters
OMe
O
OMe
O
MeO
Industrial
Products
Pharma-
Products
ModifiedTriglycerides
O
*
O
O
O
R'
O
O
*
n
O
Polymer
Products
UnsaturatedTriglycerides
O
O
O
R'
O
O
O
O
33. STEPOSOL® MET-10U
Extremely surface active, low-HLB nonionic surfactant that makes water work
like organic solvent even at 85% to 98% water.
Hard Surface Cleaning of non-baked
aged kitchen grease
Neutral pH
Cleaning of baked kitchen and oven soils
pH 10–12
Removal of latex, spray paints, adhesivesRemoval of latex, spray paints, adhesives
pH 11–13
