Product Stewardship Paradigm Shifts

Beth Turner

Global Director – Sustainability and Product Stewardship

E. I duPont de Nemours and Co, Inc.

Asia Pacific Responsible Care® Conference

November 16, 2005

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DuPont's VisionTo be the world’s most dynamic science company, creating sustainable solutions essential to a better, safer, healthier life for people everywhere.

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Compliance

Value

Business Integration

Corporate Environmentalism

Vision & Objectives of Woolard

SustainableGrowth

New modelsNew technologies

SHECommitment

DuPont’s Journey

The Goal Is ‘0’

Responsible Care®

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Old Paradigm

• Rules of the road were well defined by law and regulation

• Government held most of the information, arbitrated the debate . . . and was a powerful force in assuring freedom to operate

• Primary focus was on environmental harm: facility and emission-based rules

• Public’s role was to react and provide comments

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Old Paradigm

• Science played a strong role and we understood the science

• Most chemicals were not regulated and there was little mandatory testing

• Where there was product regulation, government approvals sufficed for public acceptance

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Old Paradigm

• Information was provided to the public by government

• National publics were generally isolated from one another

• Within corporations, the responsibility for understanding and managing these issues belonged in HSE, legal or operations

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Shifts are Occurring

• Society

• Science

• Information

• Roles and power

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Society

• Society is taking a more active role in deciding what is acceptable and unacceptable. Increasingly, power resides with the consumer.

• Facility footprint still matters, but society is concerned about what we make, as well as how we make it

• Public’s concern is broader than harm to air, water – does it harm me?

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Society

• The public’s concern and role is shifting:

• Products are the new target

• Concern about lack of product regulation

• Concern about societal value and impact from our products down the value chain

• Public’s definition of risk includes a strong “values” component

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Science

• Science is still important, but is not sufficient for public acceptance

• Consumers are making choices that are not science-based

• Science is rapidly evolving:• Moving from emissions to products to chemicals in body

• Detection limits lower and lower

• Information in public domain before government can tell public what it means

• And what DOES it mean in the cumulative aggregate, not chemical-by-chemical?

• Raising more questions than answers

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Information

• Rules of the road are ill-defined and not legally based

• The Internet is changing the rules

• Information about safety, risk and societal values is readily and rapidly accessible to the public

• Public more informed about health effects

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Information

• Information reaches the public domain before government can interpret and respond

• Issues are becoming global and quickly

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Roles and Power• Power is shifting

• National government is important but is often no longer dominant

• Power to the people

• Power to local government

• Power to international treaties and agencies

• Power to multiple national governments

• Issues are both local and global

• NGOs are playing a growing role in shaping the public’s view of acceptable risk

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Roles and Power

• Non-governmental organizations (NGOs) are rising as a filter to society

• The Internet is uniting small, diffuse NGO groups

• NGOs are frequently targeting the marketplace: consumers, markets, brands

• NGOs are connecting with other entities such as plaintiff’s bar for influence

• Public trusting NGOs more than government or industry

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• Decisions are moving out of the government and into the marketplace.

• We are operating at the indulgence of the public, not at the indulgence of government.

In the New Paradigm

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• NGOs are forcing market change:• Achieve faster behavior change and risk reduction

• Companies respond quickly to market forces

• A market leader can change an industry’s behavior before government

• Some NGOs interested partnering with companies to effect change

• Others are interested in aggressively targeting companies

In the New Paradigm

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• Media and internet are making market campaigns globally effective, fast and inexpensive.

• Every industrial sector is impacted: automobiles, food, clothing, . . . chemicals.

In the New Paradigm

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Sustainable Companies Must

• Have world-class:• Facility management

• Science

• Product stewardship

• Comply with regulations, build strong regulatory relationships, and push for thoughtful regulation

• Partner with friendly NGOs and build relationships with unnatural allies

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Sustainable Companies Must

• Know critics and understand their concerns

• Be transparent

• Manage corporate reputation and live up to stated values

• Businesses must understand what is happening in their market space, with the support of Responsible Care® professionals

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Market Forces in the New ParadigmAffect All Companies

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• Is your business (or your customer’s business) vulnerable to market based campaigns?

• Are there risks and/or opportunities for your business as activists move their campaigns into the market place?

• Do you have a strategy for incorporating non-traditional stakeholders into your strategic business decisions, from research and development to commercialization?

PROVOCATIONS