Sustainability Report 2009


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Sustainability Report 2009

  1. 1. Sustainability Report 2009
  2. 2. S U S TA I N A B I L I T YEVERYWHERE IT MATTERSHelping to keep people safe and healthy is a critical part of preservingquality of life on our planet — and at Ecolab, it’s what we do. We are theglobal leader in cleaning, food safety and health protection, and we takeour responsibility seriously. We know that future generations dependon our ability to find innovative solutions to the changing needs of anevolving world. In 2009, we worked closely with customers, industry,environmental associations and more to help advance our vision tomake the world a cleaner, safer, healthier place. We focused on doingwhat matters — everywhere it matters.
  3. 3. Ecolab is the world’s leading provider of cleaning, foodsafety and health protection products and services.About EcolabEcolab reaches customers in more than 160 countries, employing 26,000 associatesworldwide. Customers include hotels and restaurants; foodservice, healthcare andeducational facilities; quick service (fast food) units; commercial laundries; light industry;dairy plants and farms; and food and beverage processors. Business Mix 2009 | Percent of Total Sales Textile Care 1% Vehicle Care 1 % GCS Service 2 % 3% Canada Healthcare 4% 4% Latin America Kay 5% 9% Asia Pacific Pest Elimination 6% Europe 31% Middle East Food & Beverage 9 % Africa Institutional 25% United States InternationalTable of ContentsA Message from EcolabChairman, President and CEO . . . . . . . . . . . 2 Our Operations . . . . . . . . . . . . . . . . . . . . . . . 17Financial Highlights . . . . . . . . . . . . . . . . . . . . 3 Our Associates . . . . . . . . . . . . . . . . . . . . . . . 25Ecolab Global Locations . . . . . . . . . . . . . . . . 4 Our Communities . . . . . . . . . . . . . . . . . . . . . 31Global Sustainability Principles . . . . . . . . . . 6 2010 Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . 342009 Highlights . . . . . . . . . . . . . . . . . . . . . . . 8 GRI Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Our Programs . . . . . . . . . . . . . . . . . . . . . . . . . 11 Sustainability Report 1
  4. 4. A Message from Ecolab Chairman, President and CEO This marks our sixth year of reporting on Many of our Lean Six Sigma projects Today’s economic conditions pose Ecolab’s sustainability efforts and progress. focused on improving sustainability, challenges, but they also create Sustainability is core to Ecolab’s vision to including discovering better ways to opportunities. Finding ways to run our help create a cleaner, safer, healthier world, manage water use in manufacturing business more efficiently — and helping our and has been a cornerstone of how we do processes, reducing the impact of the raw customers do the same — has helped us business since our company’s founding. materials used in our products, and using reduce costs and significantly reduce the Information Technology to reduce impact to the environment. Going forward, In 2009, we made great progress toward energy usage. we will continue to look for ways to improve our goals around economic progress, our own practices and, as always, we will environmental stewardship and social We also continued to set goals for focus on delivering innovative, sustainable responsibility. We established a formal, ourselves: In this report, we are pledging solutions that help customers optimize their global and cross-functional team to more to reduce our global water consumption, operations. systematically drive sustainability initiatives disposed waste and effluent water by throughout the company — in fleet, facilities, 18 percent per metric tonne of shipped product development, customer support, product by the end of 2015. procurement, regulatory, government As a global leader, Ecolab is Most importantly, in 2009 we continued to affairs and industry relations. develop products and programs that help perfectly positioned to make a our customers reduce the impact of their difference in the world. businesses on the environment. Our sales and service teams helped our customers identify opportunities to conserve The steps we’re taking to meet today’s resources and cut costs. Through on-site challenges will help us — and all of our consultation and training — and backed with stakeholders — prosper and prepare for a effective products, controlled dispensing promising future. As a global leader, Ecolab and monitoring technology — those is perfectly positioned to make a difference opportunities were transformed in the world. We embrace this opportunity into measurable environmental and and responsibility and know that the economic savings. difference we can make in helping the world All of our accomplishments in 2009 were be a cleaner, safer and healthier place made possible through our most valuable matters more now than ever. asset: our employees. We employed 26,000 associates around the world, and were recognized by several organizations as a great place to work. With the help of Douglas M. Baker, Jr. our associates, we continued to support Chairman of the Board, the communities where we live and work President and Chief Executive Officer through volunteering and charitable giving — which totaled $7.8 million in 2009.2 Sustainability Report
  5. 5. Financial Highlights PERCENTAGE CHANGEMillions, Except Per Share 2009 2008 2007 2009 2008Net Sales $5,900.6 $6,137.5 $5,469.6 (4) % 12 %Net Income Attributable to Ecolab 417.3 448.1 427.2 (7) 5Percent of Sales 7.1 % 7.3 % 7.8 %Diluted Net Income Attributable to Ecolab per Common Share 1.74 1.80 1.70 (3) 6Diluted Weighted-Average Common Shares Outstanding 239.9 249.3 251.8 (4) (1)Cash Dividends Declared per Common Share 0.5750 0.5300 0.4750 8 12Cash Provided by Operating Activities 695.0 753.2 797.6 (8) (6)Capital Expenditures 252.5 326.7 306.5 (23) 7Ecolab Shareholders’ Equity 2,000.9 1,571.6 1,935.7 27 (19)Return on Beginning Equity 26.6 % 23.1 % 25.4 %Total Debt 967.3 1,138.2 1,003.4 (15) 13Total Debt to Capitalization 32.5 % 41.9 % 34.1 %Total Assets $5,020.9 $4,756.9 $4,722.8 6% 1% Ecolab Stock Performance ComparisonNet Sales $ 55 1.6Millions 1.5 50 $$4,535 $4,896 $5,470 $6,138 $5,901 1.4 ECOLAB S&P 500 INDICES 2005 2006 2007 2008 2009 ECOLAB STOCK PRICE 45 $ 1.3 1.2 40 $ 1.1 $ 35 1.0 0.9 $ 30 0.8 $ 25 0.7 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2006 2007 2008 2009 Ecolab Stock Price Ecolab Stock Price Index S&P 500 IndexDividends Paid R&D InvestmentsMillions Millions $90 $101 $114 $129 $133 $68 $73 $83 $86 $86 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 Sustainability Report 3
  6. 6. Ecolab Global Locations With manufacturing and distribution facilities around the globe, the distance our products travel is below the median for our industry, reducing fuel use and related carbon emissions. We are also able to provide jobs in each of these communities. Fort Worth, Texas ASIA PACIFIC Garland, Texas Melbourne, Australia NORTH AMERICA Tyler, Texas Perth, Australia City of Industry, Calif. Martinsburg, W.Va. Revesby, Australia San Jose, Calif. Mississauga, Canada Guangzhou, China Jacksonville, Fla. San José, Costa Rica Shanghai, China McDonough, Ga. Mexico City, Mexico Cikarang, Indonesia Elk Grove Village, Ill. Acuña, Mexico Noda, Japan Joliet, Ill. Shika, Japan South Beloit, Ill. LATIN AMERICA Hamilton, New Zealand Huntington, Ind. Pilar, Argentina Manila, Philippines Eagan, Minn. São Paulo, Brazil Singapore, Singapore St. Louis, Mo. Santiago, Chile Seoul, South Korea Columbus, Miss. Bogotá, Colombia Bangkok, Thailand Greensboro, N.C. La Romana, Carrollton, Texas Dominican Republic4 Sustainability Report
  7. 7. EUROPETessenderlo, BelgiumChalons, France AFRICASiegsdorf, Germany Johannesburg, South AfricaMandras, Greece Dar es Salaam, TanzaniaMullingar, IrelandRozzano, ItalyMosta, MaltaNieuwegein, NetherlandsVarsseveld, NetherlandsZutphen, NetherlandsRacibor, PolandMaribor, SloveniaBaglan, United KingdomCheadle (Hulme), United KingdomLeeds, United Kingdom Sustainability Report 5
  8. 8. At Ecolab, making the world a cleaner, safer, healthier place is our Global business. We are committed to providing our customers with the Sustainability most effective and efficient cleaning, food safety and infection Principles control programs available. Economic Progress Environmental Stewardship Ecolab is the world’s leading provider of Through continuous improvement and cleaning, food safety and health protection sustainable innovation, Ecolab creates products and services. Our ongoing solutions that maximize product and commitment to exceeding our customers’ environmental performance. We make cleaning and sanitation needs has helped sound decisions based on good science, Ecolab achieve sustainable, profitable and are committed to reducing our carbon growth in the past and continues to guide footprint and overall impact on the us into the future. environment. Economic Principles Environmental Principles y We provide innovative and effective y We actively develop products and solutions that help our customers services that minimize our customers’ prosper and grow. water and energy use, with innovative Sustainability is inherent in our products packaging and dispensing methods that and services. From concentrated, solid y We invest in research and development reduce waste. formulations to innovative packaging and to create the best solutions at the best dispensing methods, our products are value. y We make every effort to use designed to help increase safety, lower environmentally responsible and y We deliver effective results at the the use of water and energy, and reduce sustainable resources to meet our needs, lowest total impact environmentally and the chemicals and waste released to the and conserve nonrenewable natural economically. environment. Strengthened by the expertise resources through efficient use and of our associates and combined with our y We serve customers around the world careful planning. dedication to social responsibility, these with consistent global solutions. y We recognize and support the human offerings provide value to our customers right to water. As such, we help protect y We invest in our people, equipping them and the global economy — and help foster local water supplies through conservation with the tools, technology and training a more sustainable world. in our own operations, as well as through they need to do their jobs while providing opportunities for personal growth and developing technologies that help our development. customers use less water, and where possible, recondition and reuse water. y We contribute financial investments that increase the long-term vitality of our y We use environmentally responsible and communities. sustainable energy sources, and invest in improving energy efficiency in our y We provide our shareholders with operations on an ongoing basis. superior value.6 Sustainability Report
  9. 9. E M P L OY I N G 26,000 ASSOCIATES We are dedicated to the communities in which we live and work, and we support them through charitable giving and community involvement.y We minimize emissions, effluents and Social Responsibility y We provide our customers with products waste caused by our operations, and and services that help protect the dispose of all wastes through safe and Ecolab is a respected leader that takes health and safety of their customers responsible methods. our responsibility to the communities we and employees, and enhance safety serve seriously. We promote the well-being by offering comprehensive producty We review the environmental attributes of our associates, our customers and our information, training and emergency of raw materials and make environmental customers’ customers by contributing support. sustainability a key requirement in the to programs and initiatives that enhance selection of ingredients for new products quality of life in the communities in which y We are dedicated to the communities in and services. we work and live. which we live and work, and we support them through charitable giving andy We monitor the environmental, health Social Principles community involvement. and safety compliance standards of our y We respect the human rights of manufacturing facilities and participate y We conduct business fairly and ethically. all people. in third-party audits to continuously Our Code of Conduct defines our improve our performance. We promptly y We are committed to supporting and corporate culture — our associates respond to situations where our encouraging diversity throughout our worldwide are held to the highest level operations have had an adverse effect organization. of integrity. on people or the environment. y We provide a safe work environment for our associates through comprehensive safety policies, programs and training. y We support small, disadvantaged and women-owned businesses by actively seeking such suppliers in our competitive bidding processes, and are committed to fostering relationships with diverse suppliers throughout the world. y We hold our suppliers to the same high standards of social responsibility that we follow. Our suppliers must protect the health, safety and human rights of their associates and be committed to continuous improvement. Sustainability Report 7
  10. 10. 2009 Highlights Hotel & Lodging Association, the Society When McDonald’s Our global reach, paired with for Foodservice Management and others to restaurants in Europe our ability to respond quickly help educate their members and industries. asked us for support With the National Restaurant Association, in planning for an at a local level, enabled we offered webinars and created an H1N1 H1N1 outbreak, us to provide unparalleled toolkit to help the restaurant industry fight we immediately provided advice on H1N1 flu and prevent the spread of the virus preparedness procedures customized to service at a time when our in restaurants. their quick service restaurant environment. customers were faced with the We adjusted our production and distribution uncertainty of an emerging capabilities for hand sanitizer and hand soap to meet their increased demand. pandemic. We responded quickly and nimbly to each For Club Med — a leader in vacation resorts response — remaining flexible to provide with 80 villages on five continents — we Health Protection service and product tailored to each of mobilized quickly to provide a pandemic their requests, which varied by country. H1N1 and Pandemic Preparedness preparedness plan tailored specifically McDonald’s supply chain in France and the to their needs, established new H1N1 At a time of global uncertainty, our work UK recognized Ecolab’s ability to rapidly cleaning protocols and provided hygiene in the area of health protection took on provide practical solutions in substantial supplies. Our team assessed their need particular importance in 2009, with the volumes as the mark of a flexible and for disinfectants to ensure products were onset in March of what would eventually be reactive supplier — a response indicative of available at all times in all locations, which labeled the H1N1 Pandemic Flu. To protect our long-term partnership approach. included taking into consideration the and prevent our customers, partners and regulations of 40 different countries. We Improving Patient Safety associates worldwide from falling ill with created an employee training plan and the flu, we immediately began work with In September, we announced our involved Ecolab associates in many different our supply chain and on business continuity partnership with the Joint Commission’s countries to deliver the training locally. planning to ensure we would be able to new Center for Transforming Healthcare to meet customer demand for hand sanitizers Club Med needed a partner who could work support a study to improve hand hygiene. and surface disinfectants around the closely with their H1N1 steering committee The goal of the study is to eliminate hand world. Additionally, to minimize risk, Ecolab as long as there was risk — which for the hygiene as a cause of healthcare-associated dispensed equipment and training tools. first several months included daily phone infections (HAIs). calls. The involvement of our associates in From foodservice to hospitality to Ecolab shares the Joint Commission’s numerous countries enabled us to provide healthcare, Ecolab worked with customers vision and commitment to reduce HAIs Club Med headquarters with continuously worldwide to develop customized solutions and improve patient safety. Poor hand updated information on the status of addressing their specific business risks and hygiene and improperly cleaned patient the pandemic and the organization’s providing training tools to educate their rooms can elevate the risk of infection, preparedness around the world. employees about flu prevention. To facilitate so we have designed comprehensive awareness and prevention, we were also infection prevention solutions, integrated involved in a number of educational with training and support, to optimize initiatives around the H1N1 pandemic. overall performance and drive continuous We partnered with the American improvement.8 Sustainability Report
  11. 11. ECOLAB RECEIVED THE 2009 TEKNE GREEN COMPANY AWARD GIVEN TO ECOLAB BY THE MINNESOTA HIGH TECH ASSOCIATION The award honors businesses that practice environmental awareness/responsibility and incorporate sustainability into their overall business model.Food Safety Ecolab was named a 2009 recipient of the IFT Food Expo Innovation Award forthe development of the first peroxyaceticacid-based commercial sterilant systemregistered with the U.S. EnvironmentalProtection Agency (EPA) for use against thehighly resistant pathogen, Bacillus cereus.Presented to Ecolab by the Institute ofFood Technologists (IFT), the award isdesigned to honor outstanding innovationin products, ingredients, applications,instruments, equipment, technology andservices. Ecolab’s patented program allowsfor effective antimicrobial sterilization withlower concentrations of peroxyacetic acid,designed for use in aseptic packaging oflow-acid beverages in plastic packagingmaterials. Environmental Stewardship To achieve existingOn the Ecolab system, one judge wrote: building certification, LEED® Certification we instituted a number“In these days of ever-growing Our corporate research, development of changes to reduce need to improve safety and and engineering facilities on the Allan L. the environmental Schuman Campus in Eagan, Minn., were impact of the RD&E absolutely ensure consumer awarded LEED-EB Gold Certification by the center, including reducing the irrigation protection, this technology U.S. Green Building Council (USGBC). needed for landscaping, improving the should provide a very valuable recycling program, reducing natural gas The Leadership in Energy and consumption, adding bicycle storage and and important added safety.” Environmental Design (LEED®) Green providing preferred parking for alternative Building Rating SystemTM is an established fuel vehicles, increasing the percentage of certification system providing third- recycled content office supplies purchased, party verification that a building was and working with the Department of Natural designed, built and operated to reduce Resources to develop a forestry and wildlife the environmental impact of the building stewardship plan for the campus. throughout its functional life cycle. Sustainability Report 9
  12. 12. Associations Our partnerships and associations help us advance our vision and support our principles aimed at economic progress, environmental stewardship and social responsibility. In 2009, our involvement included these organizations and more: — ACCORD — Green Seal — Brazilian Association of — Healthy Schools Campaign Cleaning Products (ABIPLA) — International Association for — Business Ethics Leadership Soaps, Detergents and Maintenance Alliance (BELA) Products (AISE) — California Green Chemistry Initiative — International Organization for — Canadian Consumer Specialty Standardization (ISO) Products Association (CCSPA) — Japan Food Hygiene Association — Canadian Institute of Public Health — Mexican Association of Inspectors (CIPHI) Chemical Industry (ANIQ) Social Responsibility — Carbon Disclosure Project (CDP) — New Zealand Chemical Industry Council Ecolab was named one of the “World’s Most Ethical Companies” by Ethisphere — Chemical Business Association — Nordic Ecolabel magazine for the third consecutive year. of Thailand — Plastics and Chemicals Industry The fundamental criteria used to measure — CleanGredients Association (PACIA) companies examined ethical leadership and — Consumer Specialty Products — Soap and Detergent Association (SDA) corporate social responsibility — which are Association (CSPA) integral to the way we do business. — U.S. EPA Climate Leaders — Corporate EcoForum (CEF) — U.S. EPA Design for the Environment (DFE) Ecolab was recognized by the — EC3 Global Minneapolis-St. Paul Business Journal — U.S. Green Building Council (USGBC) LEED as one of the “Best Places to Work” in — Ecologo — The Worldwide Cleaning Association (ISSA) the Twin Cities, the home of our global — EU Ecolabel headquarters, for the fourth year in a — Global Environmental Management row. Rankings were based on a survey of Initiative (GEMI) employees conducted by Quantum Market Research and the Business Journal. For the sixth consecutive year, Ecolab was named to Selling Power’s list Goals of “The 50 Best Companies to Sell For” We know that sustainability is a journey, among the largest sales forces in the U.S. and setting goals is an important part of The magazine uses key metrics including that journey. We have already set a goal to compensation, training and career mobility reduce our U.S. greenhouse gas emissions to make its determination. by 20 percent per dollar sales from 2006 Ecolab was selected as one of the top to 2012. 10 companies for iSixSigma Magazine’s This year, we are pleased to expand our Best Places to Work™ award. The rankings commitment through our new goal to were determined from two surveys reduce global water consumption, disposed completed by more than 50 of Ecolab’s waste and effluent water by 18 percent per Lean Six Sigma associates and included metric tonne of shipped product from 2009 five separate evaluation categories: job to 2015. Please see pages 18–21 and 34 for satisfaction, culture, compensation/rewards more information. and recognition, and training and career development.10 Sustainability Report
  13. 13. SUSTAINABILITY OUR PROGRAMS Our customers have enough to worry about. Whether they’re concerned with cleaning, food safety or health protection — or all of the above — they need to know the products and services they choose will do what they’re supposed to do. And they want to know that they can feel good about the environmental impact of the choices they make. That’s why Ecolab designs our products and programs using a total impact approach. We wouldn’t think of just removing a few controversial ingredients and calling our solutions “green.” We look at how our solutions will improve safety, conserve resources and reduce waste — from manufacturing to use to disposal. And we wouldn’t think of just delivering products and considering our job done. We are there when our customers need us — to monitor results, solve problems and maximize efficiency. We are there everywhere it matters.We look at how oursolutions will improvesafety, conserveresources andreduce waste — frommanufacturing touse to disposal.
  14. 14. OUR PROGRAMS Innovations like no-rinse formulas, solid concentrates and formulations that require fewer wash cycles directly reduce the First and amount of water our customers use on a regular basis. Products that are effective at low temperatures and solid concentrates that foremost, our can be shipped using less fuel help customers conserve energy, products are and we reduce waste by using minimal packaging and recyclable or effective. renewable packaging materials where safety is not compromised. Our Total We continually work to upgrade our MSDS Impact Approach system and processes globally to ensure that product safety information is up-to- Ecolab is a leader in designing products and date and that good information is available services that help our customers conserve in local languages. In 2009, we expanded resources and run their businesses more our system to cover several new eastern efficiently. We have invested millions European countries and completed work in research and development to create necessary to expand support for additional solutions that minimize our customers’ countries in Asia. water and energy use, increase safety and reduce waste. Energy and Water We have a strong history of developing Safety solutions that help our customers conserve Our products are carefully designed to help water and energy. Since the 1920s, we have people use them safely and effectively. made improving operational efficiency a When used as directed, our products will required component in the performance Personal service has always been at not harm the environment or those who of our offerings. In 2009, we received the heart of meeting our customers’ handle the products. We offer systems that recognition for several of these solutions. sustainability needs. We have the feature color-coded, controlled dispensing industry’s largest sales-and-service and language-free training materials. We In Europe, Ecolab received the Royal team — and have earned a reputation for help customers by providing programs that Association of British Dairy Farmers unparalleled expertise and round-the- include educational videos, wall charts and Prince Philip Award for its LactivateTM clock dedication. Our representatives manuals. We also offer training assistance System, a milking equipment cleaning are highly trained, equipped with the for our customers’ employees to help program that allows for a lower cleaning best tools and technology available, and with the optimum and safe use of our temperature and leads to considerable backed by an extensive technical support products, and provide a toll-free emergency water and energy savings as well as farm system. We partner with customers to telephone number on product labels. waste reduction. analyze their needs and results, and While our sales have grown, medical Ecolab Ireland received a Green consult with them on ways to conserve emergencies have declined. Design Hospitality Innovation Award at resources and reduce costs in their changes, such as replacing liquid products the National Hospitality Environmental operations while providing the quality with solids, have made our products safer Conference in Dublin. Ecolab won the results they need. for customers. We have also improved our award in the reduced water consumption hazard communication systems — including category for its integrated mopping unit, labels and wall charts — and our material the RasantTM 360, in conjunction with the safety data sheet (MSDS) system. cleaning product Magic Maxx,TM a no-rinse floor cleaner for front-of-house use.12 Sustainability Report
  15. 15. OUR PROGRAMS ECOLAB SERVICE CAN ANNUALLY SAVE A TYPICAL ON-PREMISE LAUNDRY CUSTOMER 137,000 GALLONS OF WATER And 1,100 therms of energy U.S. MSDS Distribution 800,000 700,000 600,000 500,000 400,000Ecolab service experts are trained to MSDS Authoring Activity 300,000help customers identify opportunities tosave energy and water. For example, for a 200,000customer operating an on-premise laundry, 100,000inefficient wash processes can compromise 0results, waste resources and increase 05 06 07 08 09operational costs. Our service experts aretrained and certified in the proper use ofchemistries and in effective managementof wash formulas for all brands of washers Normalized Medicaland dryers — and can eliminate unnecessary Assistance Call Volumewash cycles, reduce reclaim rates and Per $1 Million Net Salesprovide monthly reporting to monitor Europe (85%) 0.8operational efficiency. By eliminating U.S./Canada (11%) 0.7redundant wash cycles and over-drying, China/Hong Kong (2%) 0.6Ecolab service can annually save a Latin America (1%)customer 137,000 gallons of water and 1,100 0.5therms of energy. Australia (<1%) 0.4 Japan (<1%) 0.3 Korea (<1%) 0.2 Taiwan (<1%) 0.1 0 05 06 07 08 09 Sustainability Report 13
  16. 16. OUR PROGRAMS DURING A RECENT TWELVE-MONTH PERIOD 186,000 DRUMS WERE RECYCLED BY CUSTOMERS STACKED ONE ON TOP OF ANOTHER, THESE DRUMS WOULD EQUAL THE COMBINED HEIGHT OF OVER 350 Empire State Buildings A laundry operator in North America was using more than 10 million Post-Consumer Recycled Waste gallons of water annually Plastic Usage (U.S.) We are committed to using minimal to process 12 million Million lbs. resources to package our products, and pounds of healthcare we have led the industry with innovative 3.2 product designs that significantly reduce laundry. 3.1 the necessary packaging. In 2009, our 3.0 Small Business Solutions group launched To help the customer reduce water a new corrugated display tray for 12 of usage, Ecolab installed the Aqua Reuse 2.9 its 14 products. The new tray was chosen system, which reuses water in the 2.8 to improve the sustainability of the rinse modules of the tunnel washer. packaging, as well as lower cost, increase The laundry minimized its overall 2.7 pallet stability and be consistent with plant water consumption and significantly 2.6 packaging capabilities. The new design reduced the volume of wastewater reduces the amount of paper used by more discharged to sewers. 2.5 05 06 07 08 09 than 460,000 pounds. Our super concentrated products use Normalized Recycled less plastic packaging to deliver the same Plastic Usage (U.S.) amount of solution as less concentrated Percent of Total Plastic products. The 2-liter pouches of our Oasis 20 ProTM housekeeping line of products reduce plastic waste by 98 percent compared with 1-gallon concentrates, generating 86 15 percent lower emissions when transported. 10 Drum Recycling Ecolab offers a complimentary drum recycling program to its contiguous U.S. 5 customers. During a recent twelve-month period, over 186,000 drums were recycled 0 by our customers through this program. 05 06 07 08 09 Stacked one on top of another, these drums would equal the combined height of over Our percentage of recycled plastic usage has 350 Empire State Buildings. Recycling these declined as we continue to favor flexible plastics over rigid plastic containers. Flexible plastic packaging is drums reduced Ecolab’s need for nearly 3 less conducive to incorporating recycled plastic, but million pounds of virgin resin. has a positive net impact on landfilling and can be produced using 75 percent less energy.14 Sustainability Report
  17. 17. WATER SAVINGS ANNUALLY3,960,000 gallons enough to wash more than99,000 loads of residential laundry
  18. 18. OUR PROGRAMS Ecolab’s superior technology, global knowledge base and commitment to research and development allow us to continue investing in creating innovative solutions that provide superior performance while minimizing impact on our environment. Raw Material Guidance Council In 2009, we launched our Raw Material Guidance Council. This global council evaluates and rates our ingredients on an ongoing basis to continually improve the sustainability of our product portfolio. With representatives from Regulatory, Procurement, Quality, R&D, KIR (Knowledge and Information Resources) and the Sustainability Team, the council monitors information on substances that have been identified by regulatory agencies, academic research groups and political organizations as having environmental or human health concerns. The Council uses scientific evidence to Our Product Formulations evaluate these substances and provides our We believe that improving product product development teams with real-time performance and environmental impact data and guidance early in the development is a never-ending journey. We continually of new cleaning solutions. This information review the environmental attributes of helps us make sound decisions regarding raw materials and make environmental the raw materials we use — and ensures that sustainability a key requirement in the we remain at the forefront of developing selection of ingredients for new products effective and environmentally responsible and services. We make sound decisions solutions. based on scientific evidence — and consider the total, long-term environmental impact of each opportunity we evaluate.16 Sustainability Report
  19. 19. SUSTAINABILITY OUR OPERATIONS At Ecolab, sustainability is everybody’s job — and it’s built in to the way we operate. From manufacturing products to operating our fleet to interacting with suppliers, we respect people and the environment. We never have to choose between doing what’s right for our planet and doing what’s right for our business — because they’re one and the same. Around the world, we are continuously looking for ways to be more efficient. We’d like to ensure that the net impact of our operations is a positive one. It’s part of our commitment to being sustainable in everything we do — everywhere it matters.Around the world,we are continuouslylooking for ways tobe more efficient.
  20. 20. OUR OPERATIONS Ecolab is committed to reducing our Around the world, Ecolab facilities are implementing carbon footprint. initiatives designed to reduce environmental impact. Carbon Footprint development and other facilities in St. Paul, Managing Our Global Fleet Minn. We have developed an energy and To manage risks from greenhouse gas GHG reduction program for our facilities To help meet our Climate Leaders goal (GHG) emissions and identify cost-effective and will be moving toward more fuel- and improve the sustainability of our fleet reduction opportunities, we’ve joined the efficient vehicles and vehicle service routes, around the world, our fleet teams have U.S. Environmental Protection Agency (EPA) as well as less GHG-intensive fuels when made significant moves to reduce our Climate Leaders program. Through the feasible. greenhouse gas emissions. With fleets in program, we’ve committed to the following: 60 countries, we follow the best practices To date, we have achieved a reduction of learned from our operations in Europe y Developing a U.S. inventory of the six approximately 7.5 percent and are confident and the other regions of the world where major greenhouse gases emitted by our we will meet our 2012 goal. we drive smaller, more fuel-efficient U.S. facilities. vehicles. We also continue to work with Additionally, Ecolab is expanding our GHG y Reporting our progress annually to manufacturers to provide vehicles that are inventories beyond the scope of our Climate the EPA. more fuel efficient and meet our different Leaders reporting. Data on U.S. business business needs. y Setting an aggressive corporate-wide travel and global manufacturing emissions GHG reduction goal to be achieved over are being tracked and will be reported via In 2009, we continued implementing our five years. the Carbon Disclosure Project. fleet strategies aimed at using more fuel- efficient vehicles and vehicle service routes, For 2009, emissions from our global as well as less GHG-intensive fuels when manufacturing operations totaled 25,000 feasible. Under the Climate Leaders metric tons. Emissions from U.S. business program, our goal is to reduce U.S. travel (including air travel, personal vehicles 2009 Fleet Highlights GHG emissions by 20 percent per and rental vehicles used for business), y Through right-sizing our fleet and dollar sales from 2006 to 2012. totaled approximately 10,000 metric tons. management of routes and territories, our fleet drove 4.3 million fewer miles U.S. C02e Emissions than in 2008. Normalized C02e Metric Tons/$1 Million Sales y 98 percent of our fleet drivers completed eco-driving training to minimize fuel 80 consumption and change their Our U.S. GHG emissions from our direct and driving habits. indirect energy uses total approximately 75 200,000 metric tons annually. To achieve 70 y We continued our efforts to procure more our goal, we are focusing on our two fuel efficient vehicles: 65 largest GHG emissions categories — fleet — 811 cab/chassis trucks with 47 percent ground transport and our facilities for 60 better fuel efficiency (compared with manufacturing, headquarters, research and 55 prior vehicles) 50 45 40 06 07 08 09 1218 Sustainability Report
  21. 21. OUR OPERATIONS 262 TONS OF PLASTIC KEPT OUT OF LANDFILLS IN ONE YEAR — 150 diesel cargo vans with 25 percent The sustainability team also engaged a Mandras, Greece better fuel efficiency (compared vendor to recycle plastic bottles, which are As a result of Lean Six Sigma and SKU with gas-powered vans) reground and sold to make flower pots and rationalization projects, our Mandras plant curbside trash cans. Even with a 1.3 percent had five pallets of cardboard — 3,000 — 300 U.S. EPA-certified increase in production, the plant managed units — that were obsolete and no longer SmartWay vehicles to increase the amount of material kept out could be used in production. Rather — More than 30 hybrid vehicles of landfills by 57 percent over 2008 — 26 than disposing of the cardboard, the tons reused and 361 tons recycled. plant cut the cardboard and used it in place of cartons they had previously hadManaging Our Operations Cheadle, United Kingdom to purchase, avoiding the need to buyGreensboro, North Carolina At the Ecolab plant in Cheadle, all large additional cardboard. packaging is returned to the plant onceOur plant in Greensboro continued to build emptied by the customer. In the past, it St. Paul, Minnesotaon its successful recycling initiatives this wasn’t feasible to wash and reuse the Early in 2009, we replaced the signage onyear and found new ways to keep waste 20-liter containers, because their adhesive the exterior of our corporate headquartersout of landfills. For each identified waste labels left a residual glue that needed to be building in St. Paul with signage lit by LEDstream (including bottles, cartons, caps, removed with a solvent and compromised (light-emitting diode) lights. LED lightssprayers, raw materials, obsolete product, the quality of the containers. have a 15- to 20-year life cycle, and reducetotes, drums, cartons and plastic), the plantsustainability team asked: energy usage over the former neon tube With a switch to plastic sleeves, the plant lighting. The new signage also allows for was able to re-evaluate the recycling ofy Can we reuse or rework the item? better air flow in and around the ductwork the containers. In 2009, the Cheadle team at the top of the building, further reducingy Can we sell to another source that began washing and reusing the containers. energy use by making it easier to cool the can reuse? The PE (polyethylene) sleeves are also building in the summer. recycled. In one year, this program kept 262y Can we give away or donate the item? tons of plastic out of landfills. At our facilities in St. Paul and Eagan,y Can we repurpose the item? Minn., we implemented power management Grapevine, Texas features to put PCs and monitors to sleepFiber drums, which had previously been We changed our lighting system at our when not in use. Information Technologysent to the local landfill, are now used to distribution center in Grapevine, reducing updated systems to automatically turn offhold powder from dust collectors and to power usage by 673,744 kWh per year — monitors after 20 minutes of inactivitycollect process waste from a manufacturing the equivalent of saving 55,618 gallons of and enter standby mode after two hoursline — avoiding the need to dispose of the gasoline or 1,324 barrels of fuel oil, and the of inactivity. Nearly 3,000 desktopdrums, as well as the need to purchase new air-scrubbing equivalent of a 124-acre forest computers and 1,200 laptops were affectedcontainers. In 2009, the plant repurposed or taking 109 cars off the road. by the project, reducing carbon dioxide by2,100 fiber drums. approximately 1,200 metric tons. Sustainability Report 19
  22. 22. OUR OPERATIONS Ecolab pledges to reduce global water consumption, disposed waste and effluent water by 18 percent per metric tonne of shipped product from 2009 to 2015. Manufacturing Metrics 2009 2009 Normalized Water Consumption (m3) (m3 per mt product) We have been striving to reduce the impact of our operations for years by Asia Pacific 143,783 1.07 setting internal goals for improvement. Our 2009 data, shown here, serves as EMEA* 354,291 0.98 our baseline as we work to increase Latin America 47,360 0.98 transparency by publicly committing to our 2015 reduction goal. North America 1,088,634 1.46 GLOBAL 1,634,068 1.27 2009 2009 Normalized Disposed Waste (mton) (kg per mt product) Asia Pacific 3,108 23.2 EMEA* 7,354 20.4 Latin America 851 17.7 North America 9,239 12.4 GLOBAL 20,552 15.9 (Disposed waste includes both solid and hazardous wastes) 2009 2009 Normalized Effluent Water (mton) (mton per mt product) Asia Pacific 67,894 0.51 EMEA* 216,774 0.60 Latin America 12,115 0.25 North America 579,259 0.78 GLOBAL 876,042 0.68 *Europe, Middle East, Africa20 Sustainability Report
  23. 23. OUR OPERATIONS SUSTAINABILITY ACTIONS In 2009, we launched an internal campaign aimed at educating our associates about sustainability. Sustainability Actions is an e-newsletter sent regularly to associates around the world with information on steps they can take to reduce their impact on the environment on and off the job — including topics like conserving energy, reducing paper usage and improving fuel efficiency.Reducing Our ISO 14001 Environmental EHS Compliance AuditingManufacturing Footprint Management Systems and Capital Expenditures The International Organization for To enhance environmental health andWe are committed to continuous Standardization (ISO) 14001 environmental safety compliance in our manufacturingimprovement and are announcing our management system is a voluntary system operations, North American facilities aregoal to reduce global water consumption, for managing environmental aspects of audited by a third-party consultant on adisposed waste and effluent water by business operations, somewhat similar to periodic basis. Similarly, in Europe and Asia18 percent per metric tonne of shipped the ISO 9001 quality system. This sought- Pacific, an outside EHS consultant auditsproduct from 2009 to 2015. after designation includes guidelines our plants. Audits are performed when for how organizations work to prevent facilities are acquired, and our propertyMonitoring and Management pollution, conform to legal requirements, and casualty insurers conduct fire and minimize impact on the environment worker safety assessments and pressureEcolab strives to use resources efficiently and continuously improve environmental vessel certifications at Ecolab our manufacturing operations and to performance. Currently, 42 percent of These auditing programs help us continuallyreduce waste to improve our environmental Ecolab facilities worldwide are ISO 14001 improve our EHS performance.performance. We invest in improving efficiency and conservation in ouroperations. We also minimize and seek to We are in the process of implementing planseliminate the release of pollutants that may to certify additional facilities. In 2010, ourcause damage to our planet’s air, water, land locations in Toronto and St. Paul, Minn.,or inhabitants. will complete the ISO 14001 certification process, with the remainder of NorthWe continuously monitor the environmental, American locations planned to achievehealth and safety compliance standards certification by 2012.of our manufacturing facilities around theglobe. Internal and third-party audits lendintegrity to the process and lead us towarda more sustainable business model. Sustainability Report 21
  24. 24. OUR OPERATIONS EPCRA SARA 313 Releases to the Air/Environment A team of Ecolab Water, Form R Releases As required by the U.S. Emergency Planning Energy & Waste experts Thousand lbs. and Community Right-to-Know Act (EPCRA), assessed 11 plants for Ecolab facilities make information available 7 about releases of EPA-listed chemicals to a North American 6 the environment. The primary chemicals food and beverage 5 reportable are formula components that processing chain. evaporate during production. 4 Our Total Plant Assessment process 3 Remediation Sites enabled the team to evaluate each Ecolab makes aggressive efforts to avoid plant holistically, then prioritize 2 pollution in our operations. We continue recommendations so those with the 1 to work in cooperation with regulatory lowest investment and greatest return authorities for successful closure of the few could be implemented first. The team 0 04 05 06 07 08 sites where Ecolab has been named as a found opportunities to reduce water “potentially responsible party.” use by 22 percent and energy use by 2009 release volumes will not be available until mid-2010. 27 percent. In 2009, Ecolab spent approximately $1,725,000 worldwide on environmental Product Shipment remediation. Our environmental Spills or Incidents remediation expenses have related U.S. DOT Form 5800 primarily to two categories: businesses acquired by Ecolab and accounted for in 140 connection with the transaction; or historic 120 businesses divested years ago. 100 Safe Transportation of Goods 80 Ecolab works with national and 60 international agencies to help craft future standards regarding the safe transport of 40 goods and to ensure that Ecolab products 20 are delivered to our customers safely. 0 05 06 07 08 0922 Sustainability Report
  25. 25. WATER SAVINGS ANNUALLY280,000,000 gallons equivalent to the needs of more than 3,000 U.S. householdsENERGY SAVINGS ANNUALLY 310,000 DECATHERMS
  26. 26. OUR OPERATIONS Our Supply Chain Ethical Sourcing Value of Covered Spend in Millions Ethical Sourcing Standards $600 Our Ethical Sourcing Standards represent a global supply chain initiative to require $500 our direct suppliers to protect the health, $400 safety and human rights of their associates. $300 Suppliers must meet standards for forced labor, child labor, health and safety in $200 the workplace, fair pay, harassment in the workplace, diversity and ethics and $100 environmental policies. We require that $0 our suppliers identify and act swiftly to 07 08 09 eliminate any unacceptable conditions or practices in their facilities. We will not do business with suppliers who do not support Purchasing from Diverse Suppliers the fundamental principles of human To promote sustainable growth across dignity and rights of workers to fair and different sectors, Ecolab policy encourages equitable treatment. and affords opportunities to diverse Our supplier requirements are based on suppliers while ensuring that we receive these international standards: the highest quality products and services at the most competitive prices. Our Supplier y United Nations Universal Declaration Diversity Program is founded on the of Human Rights, which sets a common principles of fair and equitable business standard of achievement for all peoples practices and social responsibility to the and nations and represents a set of core communities we serve. international ethical standards. Ecolab continued to strengthen its supplier y United Nations Convention on the Rights diversity program this year by overseeing of the Child, which has been ratified by the registration of diverse suppliers on almost all member states in the UN and its Supplier Diversity Portal and providing provides a framework for interpreting the internal diversity education and training. best interests of the child. Community involvement remained a focus with Ecolab associates, representing a y Conventions of the International Labour variety of purchasing areas. Associates Organization, which sets international took part in matchmaking events at both labor standards including Fundamental the Minority Business Opportunity Fair and Principles and Rights at Work. Government Procurement Fair. For 2010, our objectives are to further In 2009, our U.S. purchases from small enhance spend coverage under this businesses totaled approximately 11 program and to expand documentation percent of total spend, with new contracts requirements to provide better disclosure awarded to diverse and woman-owned on our suppliers’ environmental policies small businesses in the areas of travel and practices. management and pharmaceutical contract manufacturing.24 Sustainability Report
  27. 27. SUSTAINABILITY OUR ASSOCIATES Our strength has always been in our people. Our customers feel safe, secure and supported because they know they have a whole team of Ecolab associates backing them up, with expertise in every area of business — research and development, customer service, legal and regulatory, finance, operations and procurement, human resources. The Ecolab experience is unparalleled in our industry because of each and every one of our 26,000 associates. We are all a part of something bigger, adding value to the world. We feel good about coming to work because we all have the ability to make an impact — everywhere it matters.The Ecolab experienceis unparalleled in ourindustry because of eachand every one of our26,000 associates. Sustainability Report 3