THE BUSINESS CASE FOR SUSTAINABLE GROWTH

Davide Vassallo / Global Managing Director DuPont Sustainable Solutions

15th October 2015

Mexico City

THE BUSINESS CASE FOR SUSTAINABLE GROWTH

A PRESENTATION FOR MEXICAN ASSOCIATION OF CHEMICAL INDUSTRY

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/ THE BUSINESS CASE FOR SUSTAINABLE GROWTH

Agenda

2. Our journey at DuPont

3. Enablers and Tools

1. A Model for Sustainable Growth

2

MOVING BEYOND COMPLIANCE AND PURSUING SUSTAINABLE

PERFORMANCE DELIVERS REAL BUSINESS VALUE.

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A MODEL FOR SUSTAINABLE GROWTH

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/ A M O D E L F O R S U S TA I N A B L E G R O W T H

4

Companies across all industries are facing increasing social and environmental challenges and responsibilities

COMPETING RESOURCES

Nature People Skills

• Scarce coastal lines and coastal waters in Singapore

• Protecting marine environment

• Manpower challenges both in numbers and quality

• Diversity improvements

Customers Investors

Governments Communities

• Increasing environmental and climate regulations, emission control measures, reporting and transparency

• Responsible procurement

• Stakeholders’ emphasis on sustainability

• Human rights initiatives INCREASING

EXPECTATIONS

Instant visibility Instant response

Desired or undesired

• Increased intolerance to impacts and incidents relating to human safety as well as process safety

• Increases of reputation crisis

• Better response to oil spills and situational awareness for emergency management

• Better assessment of hazardous cargo

RADICAL TRANSPARENCY

Sustainable Growth Model



5

CONTINUOUS IMPROVEMENT Improve operational efficiency

TIME

PER

FOR

MAN

CE

RADICAL CHANGE Starting with low

hanging fruit

The Goal for Sustainable Growth Performance is to Decouple Business and Footprint Trends

Footprint trend of compliance- focused company

Production trend

Footprint trend of sustainability performance-focused company

Sustainable Growth



OPERATIONAL EXCELLENCE SUSTAINABLE GROWTH LICENSE TO OPERATE

Operational Efficiency Innovation

Influence on Society and the competitive landscape

Risk Mitigation

Cost Reduction Competitive Advantage

Revenue Generation

Awareness & Compliance

Leading Companies put Broad Societal Needs at the Center of the Business Strategy and Risk Management

VALUE EXTRACTION

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OUR JOURNEY AT DuPont

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/ D u P o n t ’ s JOURNEY

Environmental Stewardship became a serious challenge for DuPont in the late 1980’s

The Journey Towards Sustainability Has not Been Simple or Easy at DuPont…


Energy Goals

VALU

E

1970 1989 2000 2006 2014

BUSINESS INTEGRATION

Sustainable Growth

Protection


We Went from Safety to Sustainability

Pollution Reduction

Compliance

Energy

Food

Megatrends

Market Facing Goals

Marketplace

Footprint Reduction Goals

Corporate Environmentalism



Absolute Footprint Values Relative to Baseline

60% 40% 20% 0%

80%

100%

120%

PER

CEN

T O

F 19

90 (2

004

FOR

WAT

ER)

1990 1995 2000 2005 2010

140%

160%

Production + 47%

Energy - 3%

Water - 9%

CO2 eq. - 50%

Hazardous Waste - 60%

We achieved ambitious footprint reduction goals…



COST SAVINGS OVER $6 BILLION (USD)

INDUSTRY RECOGNITION “LAGGARD” TO “LEADER”

435TH CONSECUTIVE QUARTER DIVIDEND

MARKET-FACING SINCE 2011 $1 BILLION

Invested in R&D for products that reduce environmental impacts

1964 NEW PRODUCTS Or Services That Make People Safer

$2.5 BILLION In revenue from products that

reduce greenhouse gas emissions

$12.8 BILLION In revenue from products based

on non-depletable resources

FOOTPRINT SINCE 2004 19% REDUCTION

Greenhouse gas emissions

8% REDUCTION Water consumption overall

18% REDUCTION Water consumption in

scarce and stressed areas

100% ISO 14001 Certified dupont legacy sites

11

… And Consistently Delivered Tangible Value for Company and Society

ENABLERS & TOOLS

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MANAGING PROCESSES

To keep focus on what really matters with the right people

TECHNICAL MODEL

CAPABILITIES ENGINES

MINDSETS & BEHAVIORS

To ensure the right skills and

effective coaching on operational risks

To align organization on the purpose and

objectives of operational risk reduction

Standard tools and practices to drive

focused operational risk reduction

EXPECTED BUSINESS OUTCOME

PEOPLE

/ ENABLER & TOOLS

We Apply an Integrated Operating Model to Manage the Reduction of Operational Risks


The Corporate Business Planning Cycle

The Environmental Planning Cycle

We Started in the 90s with the Integration of Environment Risks into the Business Planning Cycle

/ ENABLER & TOOLS

Business Plan Guide

Capital Plan Preview

Business Plan Preview

Business Plan Consolidation

Business Plan Approval

Budget Plan Approval

BU Business Planning

Input to Next Plan

Communication & Information Flow

Communication & Information Flow

BU Business Planning

Coporate Roll-Up, Analysis &

Recomendation

Review Cycle Success & Progress

Toward Goals Sustainability

Guidance Business

Environmental Plans

Communicate Recomendations


CORPORATE BUSINESS PLANNING CAPITAL PROJECTS

OPERATIONS

SUPPLY CHAIN + R&D

Today Sustainability Drivers and Risks are Embedded in All our Key Processes

/ ENABLER & TOOLS


Inci

dent

& In

jury

Rat

es

REACTIVE DEPENDENT INDEPENDENT INTERDEPENDENT

STABILIZE & MAXIMIZE EFFICIENCY

Risk Reduction & Control

Value Generation & Operational Discipline

Operational Excellence

BRADLEY CURVE

GROWTH CURVE

CULTURAL MATURITY

WORKER ENGAGEMENT LEADERSHIP

Culture and Operational Discipline make the Foundation of our SUSTAINABLE GROWTH model

/ ENABLER & TOOLS


/ THE BUSINESS CASE FOR SUSTAINABLE GROWTH

17

1. The true integration of business strategy with societal needs requires a reference model to address Sustainable Growth challenges

Closing Remarks

2. A key to success is to build on sounding methodologies and existing cultural strengths.

3. The payoff is multifaceted and impacts the total business.

MOVING BEYOND COMPLIANCE AND PURSUING SUSTAINABLE

PERFORMANCE DELIVERS REAL BUSINESS VALUE.

Copyright ©2015 E. I. DuPont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™ are registered trademarks or trademarks of DuPont or its affiliates.

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THE BUSINESS CASE FOR SUSTAINABLE GROWTH