Kieran Callahan

Business Development Manager UL i&i

Sustainability Report Cards

What’s Hot & What’s Not?

1. Introduction – UL / UL Information & Insights

2. What’s Driving Compliance Requests

3. What’s Driving Sustainability Data Calls

4. Risks for Retailers & Brands

5. Sustainability Examples

6. QA

AGENDA

2

UL OVERVIEW

3

The definition of safety is changing. So is UL.

Mission

Working for a safer

world since 1894 is

at the core of

everything we do.

4

UL Vision

the ability to find, connect & analyze information, supported by expertise and science, to enable innovative, compliant and sustainable supply chains

better decisions

in less time

technology

scienceexpertise

other

sustainability performance

environmentalregulatory

THE DATA FOUNDATION

(public, exclusive, secure)

THE i&i DIFFERENCE

(UL values)

THE VALUE TO CLIENTS

( + revenue // - costs)

What’s Driving Score Cards

5

Enormous Pressure in Industry

Retailers are the ultimate pinch point for NGO campaigns, but they are also under pressure to cut cost and increase sales.

RETAILER PRESSURES

Big Brands are driving their own sustainability programs and reacting to retail sustainability programs

BRAND LEVEL PRESSURES

Questionnaires being driven from the top down the supply chain making it difficult and costly to respond to data requests.

SUPPLY CHAIN PRESSURES

… will this go away?

6

Pressure on Retail / Brands / Supply Chains

Retailers are the ultimate pinch point for NGO campaigns, but they are also under pressure to cut cost and increase sales.

COMPLIANCE

Brands are driving their own sustainability programs and reacting to retail sustainability programs

SUSTAINABILITY

… will this go away?

7

Compliance

8

COMPLIANCE PRESSURE // CHALLENGE

Tens of thousands of Products containing chemicals Adhesives, Cleaners, Paints, Aerosols, OTC etc.

Increasing and Changing chemical-based regulations Federal Transportation Requirements (Ground, Air, Vessel)

RCRA (Resource Conservation and Recovery Act)

State Laws that go beyond RCRA (California, Texas, Rhode Island, Vermont, Washington etc.)

VOC Regs / State Restrictions / Fire Code

Critical/Validated Data is Needed to support Business Objectives Compliance Objectives

Sustainability Goals

9

CALIFORNIA ENFORCEMENTRegulators in California alone have obtained over $160 million in settlements from retailers since 2007.

Jan 2015 Safeway $9,870,000

Dec 2014 99 Cents Only Stores $2,362,500

Sept 2014 TJ Maxx, Marshalls, Home-Goods $2,777,500

Aug 2014 Raley’s $1,599,000

June 2014 Albertsons $3,287,000

April 2014 Lowes $18,100,000

Sept 2013 Rite Aid $12,324,000

Dec 2012 Walgreens $16,575,000

April 2012 CVS $13,750,000

Feb 2011 Target $22,500,000

May 2010 Walmart $27,600,000

May 2009 Kmart $8,650,000

Oct 2007 Home Depot $9,900,000

10

Waste Disposal Challenges? Yes or No?

CaliforniaConnecticutMichiganWashington

YES!

CaliforniaConnecticutMaineMichiganMinnesotaNew HampshireOregonRhode IslandVermontWashington

YES!

CaliforniaWashington

YES!

YesRCRA Federal Waste Corrosive - Hazardous waste in ALL 50 STATES

THE RETAILER DATA GAP

CHEMICAL COMPLIANCE & SUSTAINABILITY CHALLENGES REQUIRES YOU TO GET ADDITIONAL DATA FROM YOUR SUPPLIER BASE…

(M)SDSs – never meant to support these business needs!• Original purpose – OSHA compliance

• Supplier Mindset Minimal Disclosure / Missing Data

• Different interpretations/biases by manufacturers of (M)SDS

• Complete Transportation data missing

• “Dispose in accordance with local regulations”

• Uniform Fire Code Missing (Disposal and Storage)

RETAILER - rely on supplier (M)SDSs for critical regulatory compliance, waste, logistics, EHS, & transportation information.

The best prepared (M)SDSsDO NOT communicate all data required by Retailers

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700,000UPC

8000

Suppliers

Product Registrations

Ingredient Data

2Business

Days Storage, Shipping,Hazard Waste, Restriction, Reports, Custom Data,Safety Data & Documents

WERCSmart™Web Portal

24/7/365 Access

THE WERCS

PROCESS WERCSmart Platform

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Participating Retailers

14

40+

TodayA&P

Ahold USA

Albertsons

Amazon

Bed Bath and Beyond

Costco 

CVS 

Delhaize America

Dick’s Sporting Goods

Dollar General 

Dollar Tree Stores

Family Dollar

Genuine Parts Co

The Home Depot 

HD Supply 

Hy-Vee 

Kroger 

Lowes

Meijer 

McLane

New Egg

Office Depot

O'Reilly

Petco

Rite Aid

Radio Shack

Safeway

Sears

Save Mart Supermarkets

Smart & Final

Staples

Supervalu

Target Canada

Target

TopCo

Tractor Supply Company

United Stationers

Wal-Mart/Sam’s Club

Winco Foods

99 Cent Only

WERCSmart Platform

DOTOSHA NFPA EPA State/Local Green Demand

SAFETY TRANSPORT STORAGE HAZ WASTE LEGAL CONSUMER

• Stores• Dist. Ctr

• Stores• Dist. Ctr• Customers• Waste hauler• Reverse logistics• Supplier

• Dist. Ctr• Stores• Local Fire Marshall

• Reverse logistics• Waste hauler• Stores• Dist. Ctr

• Stores locations• Dist. Ctr• Waste hauler• Reverse logistics

• Stores• Consumer• Share holder

REGULATORY EXPOSURE AND CONCERNS

AREAS OF IMPACT

DATA CHALLENGES

• Green Washing

• Lack of Data

• Proof

• Selling Restrictions

• Monitoring Regulations

• RCRA Codes

• STATE Codes

• Bucket Code

• Uniform Fire Code

• Slotting Data

• Chemical Inventory

• All Modes

• Placarding Data

• Electronic SDS Access

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Sustainability

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Reasons for Rapid Expansion of Sustainability Programs

Sustainability Makes Business Sense – Save Money

Globalization of Supply Chains & Legislative Failure

Advocacy Campaigns by NGO’s(Newspaper Test)

Social Media & Rapid Spread of Information

Brand Building & Increased Sales Opportunities

Consumer Demand for Transparency(Safe Products)

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Suppliers OEMs & Brands Retailers Consumers

Supply chains need to share data and collaborate to deliver products that not only comply with regulations, but are also healthier, more sustainable, and more profitable.

Welcome to the Demand Chain

The Demand Chain

Sustainability

Demand Chain that drives market requirements for better consumer products down the supply chain, opening up new business opportunities at every level.

Reduce Risks

Improve Vendor

Relations

Support Programs

GrowSales

Reduce Costs

Increase Transparency

Sustainability Benefits

Benefits

‣ Real-time Search and Filtering of Product Data

‣ Product, Component, Ingredient, and Material tracking

‣ Respond Quickly to Regulators, NGOs, and Consumers

‣ Dashboards for Decisions

Reduce Risks

Risk

Benefits‣ Educate Vendors

About Data Needs

‣ Create Transparency and Trust around Confidential Business Information

‣ Help Improve Products in Response to Retailer Criteria

‣ Respond to Rapidly Emerging Issues Around the World

Improve Vendor

Relations

Vendor Collaboration & Innovation

Benefits

‣ Proactively Screen Product Data

‣ Avoid Fines

‣ Reduce Litigation Costs

‣ Reduce Labor Required for Data Entry and Management

Reduce Costs

Cost Reduction

Benefits

‣ Implement Sustainable Product Standards

‣ Comprehensive Product and Company Screening

‣ Incorporate Custom Definitions of “Healthier” and “Sustainable” Products

Support Sustainability

Programs

Meeting Business Objectives

Benefits

‣ Put a Retailer on a Path to Being a Leader in Sustainable and Healthy Products

‣ Develop a Product Set and Tools To Help Consumers Find Healthy Products

‣ Integrate Regulatory and Sustainability Processes into Core Business Operations

‣ Gain Real Intelligence from Data

GrowSales

Increase Sales - Sustainable Products

Decision Support for Retailers, Manufacturers, Brands and Consumers that Opens Opportunities across the full Value Chain.

Retailer Support

Product Design Support

Consumer Insights

Material Supplier Support

Examples of Sustainability In Action with Brands you know.

Sustainability Examples

Target Sustainable Product Standard

‣ Designed to Help Target Buyers Screen Products for Comprehensive Sustainability Concerns

‣ Turning Sustainability Policies into Action

‣ Transparency, Ingredients, Packaging, Water Impacts, etc.

‣ Vendors Representing 7,500 Products in Household Cleaners, Personal Care, and Baby Care

Target

Walmart Driving for Cost Reduction‣ Walmart has been a clear

leader in the development of the Sustainability Consortium.

‣ Tracking Company Level Sustainability Goals and Objectives

‣ Moved to a High Priority List of Chemicals and a Priority List of Chemicals.

‣ Better Management of Supply Chains 

‣ Big Data, Collected a Ton of data

‣ Primary Driver is Save Money – Live Better

Walmart

Walmart Scoring / High Priority Chemicals

Method

‣ Manage Sustainability data for the product catalog

‣ Tools for Product Designers to Compare and Select Materials

‣ Make Life-Cycle Thinking Accessible for Designers

Method

Consumer Pressure – Consumer Apps

‣ Publicly Available Ingredient Data (from GoodGuide)

‣ Permission-Based Supplier-Disclosed Ingredient (from PurView)

‣ View Against Available Regulatory Lists or Sustainability Profiles

‣ Consumer Insights

Questions

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