SB'14 San Diego Annie Longsworth, CEO, Saatchi & Saatchi S North America Rob Kaplan, Director, Product Sustainability, Walmart Cristian Barcan, Regional Head SET - Applied Sustainability for Americas & Asia/Pacific, BASF Nutrition & Health Roman Smith, Director, Sustainability Operations, Corporate Sustainability & Philanthropy, AT&T While no one has direct-to-consumer communication of sustainability data completely figured out – especially when it comes to complex data such based on LCA or supply chain impacts – this session aims to discuss how brands are prioritizing existing options. Expect substance-rich case studies and valuable insights around ways to weigh competing ideas for communicating complex environmental and social impacts. Speakers will also share what research they are relying on to inform decisions in this context.

3. © 2014 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.3
AT&T Eco-Ratings
Communicating Sustainability Data to Consumers
June 3, 2014

4. Topics for Today’s Discussion
• Overview of the AT&T Eco-Rating System
• Manufacturers: Meeting the Challenge
• Consumer Tool
• Why the System is Important to AT&T?
• What is Next for AT&T’s Eco-Rating System?
Agenda
© 2014 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.4

5. © 2014 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.5
Developing and Improving the AT&T Eco-Rating System
Purpose of Eco-Rating
• Engage consumers with
simple, transparent and
consumer-focused
environmental
information
• Influence device
manufacturers to
innovate with
sustainable design
Environmental Attributes
• Hazardous substances
• Environmentally-
preferable materials
• Energy efficiency
• End-of-life
• Responsible
manufacturing
Guiding Principles
• Prioritization
• Alignment
• Simplicity
• Credibility
• Transparency

6. © 2014 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.6
Eco-Ratings at a Glance

7. OEM 2013 Eco-Rating (Avg.)
Blackberry 3
HTC 3
LG 4
Motorola 3
Nokia 4
Pantech 3
Samsung 5
Sony 4
ZTE 4
July 2012
Average rating: 3 stars
Today
Average rating: 4 stars
© 2014 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.7
Eco-Rating: Raising the Bar

8. © 2014 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.8
Execution: Timeline for AT&T Eco-Rating System
2
2013
Expanded system to
include Pre-Paid and
select Power Accessories
3
2014
Refresh in mid-2014;
include AT&T Branded
Tablets
1
2012
Launched system for AT&T
Branded Post-Paid devices

9. att.com/ecospace
Outstanding Achievement Award from
Interactive Media (2013)
• Community
• Green/Environment
Communicator Silver Award of Distinction
(2014)
• Green/Eco-Friendly
• Social Responsibility
• Telecommunications
© 2014 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.9
AT&T EcoSpace: Award-Winning Tool for Consumers

10. © 2014 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.10
Consultation and Collaboration to Build the System
BSR review and
consolidation
of relevant
criteria
Developed
reduced set for
deeper review
BSR deep-dive
including
analysis,
internal and
external
experts,
stakeholder
interviews
Prioritized and
selected for
rating system
Identified
comprehensive
set of criteria
2014 Refresh
• Analyzed 2012 system results and feedback from OEMs
• Reviewed updates to standards, research papers, guidelines etc.
• Consulted internal BSR and AT&T experts
• Engaged stakeholders
Original Approach

11. © 2014 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.11
Why is this Important to AT&T?
29%
25%
22%
16%
Findings from consumer research conducted in 2013
Absolutely will tell family & friends
Believe Eco-Ratings can work successfully
Find Eco-Ratings truly unique
Eco-Ratings significantly improve the opinion of AT&T
14%Eco-Ratings makes the consumer more likely to be an AT&T customer

12. Refreshing the System
Commissioned Research Findings
• Consumers concerned with social component
• Millennials as a target market
AT&T Thought Leadership
• Implications of global ratings, through AT&T’s
insights gained at ITU meetings
• AT&T is the only U.S. carrier involved with the
ITU Global Eco-Rating collaboration
• Expansion to include tablets in the rating system
• AT&T will be the first carrier to develop and
launch a system applicable to Tablets
• Continued collaboration with OEMs
• Assess the wearables market
© 2014 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.
AT&T Proprietary (Internal Use Only) Not for use or disclosure outside the AT&T companies except under written agreement.
12
What is Next for AT&T’s Eco-Rating System?

13. © 2014 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.
AT&T Proprietary (Internal Use Only) Not for use or disclosure outside the AT&T companies except under written agreement.
13
APPENDIX

14. 14
Environmental Criteria of the System
Attribute General Description of Performance Criterion
Hazardous Substances
Restriction of lead, cadmium and mercury in battery
RoHS Compliance; restriction of PVC and chlorinatedand brominated
flame retardants; restriction of phthalates
Restriction of extractable nickel
Restriction of antimony trioxide and beryllium compounds
Environmentally Preferable
Materials
Meets AT&T environmentallypreferable packaging criteria
Percentage of post-consumer waste plastic in housing
Recycled metal contents and percentage
Product Energy Efficiency
GSMA/OMTP Universal Charging Solution and meets
no-load consumption threshold
Energy efficiency features
End of life/Product
Take-back
Battery removabilityand device disassembly by recycler
Device materials recyclabilityrate
Provision of recycling information and promotion on device
Environmentally Responsible
Manufacturing
ISO 14001 or EMAS
Tracking, reporting and target setting for GHG emissions
Global Reporting Initiative sustainability report

15. 15
The Scoring is Simple and Transparent
1 point per criterion
15 criteria
15 points total
Scores will be out of 15 points
Simple scoring makes the system
easy-to-understand and transparent
and directly ties eco impact to performance

16. 16
5 Star Label Guidance
Eco-Rating Points Stars Given
1-5 0 Stars
6-7 1 Star
8-9 2 Stars
10-11 3 Stars
12-13 4 Stars
14-15 5 Stars

17. Sustainability Will Change the Way We Do Business Around the World Be Part of What's Next...
Rob Kaplan
Director, Product Sustainability
Walmart
@robbyk

18. Sustainability Will Change the Way We Do Business Around the World Be Part of What's Next...

19. Sustainability Will Change the Way We Do Business Around the World Be Part of What's Next...

20. Sustainability Will Change the Way We Do Business Around the World Be Part of What's Next...
Grow
Sales
Operate for
Less
Buy for
Less
Sell for
Less
Saving people
money
so they can
live better.

21. Sustainability Will Change the Way We Do Business Around the World Be Part of What's Next...

22. Sustainability Will Change the Way We Do Business Around the World Be Part of What's Next...
To sell products that
sustain people and
the environment
To be supplied 100%
by renewable energy
To create zero waste

23. Sustainability Will Change the Way We Do Business Around the World Be Part of What's Next...
Walmart’s Sustainability Footprint

24. Sustainability Will Change the Way We Do Business Around the World Be Part of What's Next...

25. Sustainability Will Change the Way We Do Business Around the World Be Part of What's Next...
Our Role? Catalyze Leadership + Innovation

26. Sustainability Will Change the Way We Do Business Around the World Be Part of What's Next...

27. Sustainability Will Change the Way We Do Business Around the World Be Part of What's Next...
Thank you
@robbyk

28. Cristian Barcan
SET – applied sustainability™
BASF Nutrition & Health
Sustainable Brands
San Diego, June 3rd
Prioritizing Options for
Direct-to-consumer
Communication of
Sustainability Data

29. The Chemical Company
We create chemistry for a sustainable future
Copyright BASF 29BASF Report 2013
€73.9Bn
Sales
112K+
Employees
€1.8Bn
R&D Expenditure
1,300 New Patents
Filed worldwide
10K+
R&D Employees
€600M
R&D Expenditure dedicated to
climate protection projects

30. ... will need 70% more food...
... more than 9 billion people in 2050...
... and will consume almost 3x our planet’s
resources (at current rate of consumption)
Already using 1.5x planet resources
– if we do nothing….
Copyright BASF 30

31. DifferentiationMusthave
Baseline
Corporate Level Product Level
Company
initiatives Premium
products
Voluntary
global standards
Extended
product standards
Corporate
requirements
Product
requirements
Legal
compliance
Basic
standards
Additional
standards
Advanced
standardsStrategic program
continuous improvement
Premium
products
31
BASF’s SET – applied sustainability
initiative
Copyright BASF
Corporate
Materiality
Analysis
GRI
Reporting
Strategy
Design and
Update
Hotspot
Analysis
Eco-
Efficiency
Analysis
Marketing
Product
Innovation

32. Many consumers are searching for
engaging messages
32
Source: http://www.sustainablebrands.com/news_and_views/brand_innovation/25-billion-aspirational-consumers-mark-shift-sustainable-consumption

33. Today’s reality
Over 340 “sustainability” logos in 42 countries
Recyclable
Recycled
Biobased
Biodegradable
Compostable
Green
Eco-Friendly
Organic
Green-by-Design
Green Chemistry
Design for the Environment
Green Architecture
Renewable
Sustainable
Copyright BASF 33

34. Example:
CPF Thailand
34
CPF’s Fresh Chicken Profiles
(CP fresh chicken 1 kg)
Overall Environmental Performances
improved over 3 years (2008, 2011)
7%
10 %CPF’s ready-cooked chicken
Profiles (2.5 kg)
Copyright BASF 34

35. Making sustainability tangible
CPF’s Fresh Chicken Profiles
Energy
Emissions
Toxicity
potential
Resources
Land use
Occupational illness &
accidents
20112008
2011
2008
Environmental Performances
3 years (2008, 2011)
4 %
10 %
6 %
Occupational
illness &
accidents
Resources
Land use
9 %
10 %
7 %
Emissions
Energy
Toxicity
potentialCopyright BASF 35

36. Tangible communication in equivalencies
Energy Savings between 2011 and 2008
Savings equivalent to the total
energy consumed by 103*
residential US homes in a year
36Copyright BASF
Sources: 2009 EIA US Residential Energy Summary (94,500 MJ/US residential home
(http://www.eia.gov/consumption/residential/data/2009/#summary) *based on ~ 1 mill kg fresh chicken production / year

37. Simple consumer messages
Copyright BASF 37

38. 38www.set.basf.com

39. “Umbrella“ marketing messages are easy
to understand and relate to
Copyright BASF 39