Kristin Eby, February 24, 2015

OUR SUSTAINABILITY JOURNEY & GREEN TEAM IMPACT

Specialty household cleaning products

•  Rust Stain Removers •  Appliance

Cleaners, •  Drain & Clog

Cleaners •  Laundry Solutions.

*Founded 1958

Professional grade products •  Water conditioning

& irrigation wholesalers

*Founded 1996

Company Goals “Enthusiastically exceeding customer expectations through innovation and

continuous improvement” � Produce products that are:

� Competitive � Compliant � Safe � Sustainable � Cost-effective

SUSTAINABILITY MODEL

SUSTAINABILITY: Where did we start? � 2009 Walmart Sustainability Questionnaire � Formed a “Green Team” or “SBC” - 2010 � Developed a sustainability initiative in

2010 � ISO 14001 Certification � Focused on Walmart Scorecard & other

customer requirements �  Began measuring GHGs in 2010 – set goals �  Measure Water Usage & Waste Generation – set goals

SUSTAINABILITY: Where did we start? (cont.) � Develop sustainability flyers � Get employees involved (AIM Program) � Joined NISBC – Get Bright Green Certified (2

Star) – Now on Board & Community Outreach

� Started recycling � Started integrating green chemistry using

DfE � Supplier Sustainability Initiative (Spring 2013) � Consolidated PC & DC – LEED (Leadership in

Energy & Env. Design) Certification – Brownfield Project

Green Team Members (2010-2013) � Distribution Center – Kurt Youkey � Production Center – Brian Gordon � HR / Customer Service – Kelly Wehman � Accounting / Finance – Tami Mayer � Operations – Tim Hartigan � Marketing – Tony Cronk � Pro Sales – Andrew Saal � Summit Sales – Doug Breeden � CFT Leaders: Kristin Eby & Minda Doering

Green Team � Purpose of CFT or “Green Team”:

� Achieve sustainability goals and help drive continuous improvement

� Duties: � Establish & recommend environmental policy,

targets, objectives and goals (metrics) for final approval by leadership team

� Oversee EMS and evaluate continuous improvement progress

� Review any open environmental CARS/PARS � Determine any process changes that could

affect our goals and objectives

Our Sustainability Strategy: 1. Implement ISO 14001 Environmental Management System and obtain ISO 14001 Certification by December 2011.

�  Benefits: � Drives and manages sustainability efforts through use of a

formal & organized management system � Keeps sustainability goals visible through use of metrics

and reviews by top management � Drives continuous improvement, which is Wal-Mart’s goal

for suppliers, and allows us to document and demonstrate our progress

�  Improves compliance � Reduces liability � We have in-house resources not available to most small

companies.

Our Sustainability Strategy: 2.  Improve score on Wal-Mart’s Supplier

Sustainability Scorecard to >60% by December 2011. (Nov. 2011)

3.  Obtain DfE Certification on DWM & WM by December 2011. (Mar 2012)

4.  Establish a set of criteria that meets new FTC guidelines to support specific green claims by August 2011. (Aug 2011)

5.  Develop a quarterly one-page sustainability flyer to communicate our efforts internally and externally by August 2011. (Aug 2012)

Additional Sustainability Efforts: � Add life cycle consideration procedures to ISO

14001 EMS (Product Development, Purchasing, etc.)

� AIM Program – incorporate sustainability � Join Northeast Indiana Sustainable Business

Council � Public / private non-profit effort to advance

sustainability practices by the business sector through education, networking and certification

� Founders: City of Fort Wayne, Fort Wayne Metals, Hagerman Construction, A. Hattersley & Sons, Indiana Tech, Lincoln Financial, Parkview, Rothburg, & YMCA

Green Team - Metrics REDUCE EMISSIONS � GOAL: Reduce normalized Scope 1 and 2

Greenhouse Gas Emissions 10% by the end of 2015

� Progress: ON TRACK. Reduced our normalized Scope 1 and 2 GHG emissions by 7.9% from 2010-2013. We expect this trend to continue with the consolidation of our distribution production locations into our newly retrofitted energy-efficient facility.

Green Team - Metrics REDUCE WASTE � GOAL : Reduce absolute solid waste to landfill 10%

by the end of 2015

� Progress: EXCEEDING OUR GOAL. Reduced our solid waste to the landfill by 68% from 2011 – 2014. This was accomplished by significantly enhancing our recycling program and consolidating our production distribution facilities.

Green Team - Metrics REDUCE WATER USAGE � GOAL : Reduce absolute water usage 15% by the

end of 2015

� Progress: EXCEEDING OUR GOAL. Reduced our water usage by 38% from 2011-2014. This was accomplished by upgrading to a more water efficient sprinkler system consolidating our production and distribution facilities.

Green Team - Metrics GREEN CHEMISTRY �  GOAL: Continuously improve the safety of our products

for consumers and the environment by substituting or eliminating, wherever possible, ingredients that may pose a concern.

�  Progress: We have integrated a thorough ingredient evaluation process into our formulation changes and newly developed products. When selecting ingredients, we prefer to use materials from the Clean Ingredients list and consider Design for the Environment (DfE) criteria. In 2013, we developed a new safer drain line that does not use traditional corrosive chemicals. Also, we have obtained DfE Certification for two of our products with the goal to certify more by 2015.

New Green Team Reorganization – Jan - Oct 2014

� Combined Green Team and Aim Team

� Changed membership � Added owner of company � Lead – V.P. of Operations

� Strived for a Dept. focus to integrate sustainable ideas

Getting Employees Involved: AIM Program

� Criteria: � Workable & Beneficial to organization � Save $100-$500/year or significant benefit � Not a function of job � Never done before

� Reviewed by the AIM Team � Final Approval by CEO � Rewards � AIM Program has saved the

company over $900,000 since July 2007.

Sustainable AIM Ideas � 30% of total AIM ideas � Since July 2010: Saved over $90,000 � EXAMPLES:

� Use paper shredding service – saves time, $, confidentiality, & recycles ($1,323)

� Eliminate hardcopy AR Registers – go electronic – save paper, time, storage fees ($8,440)

� Set all computer default print to B&W ($960) � Reconfigure Production Line ($20,000) � Print all high-quality mock up labels in-house

($4,500)

Departments

Sustainable Business Council (SBC)

Focus AIM Ideas on Waste – “Take AIM on WASTE” Link to People, Planet, Profit – the Triple Bottom Line

•  Department Heads screen ideas with originator, estimate savings, and add to log, handle, or pass to SBC

•  Departments report monthly number of new ideas, in-process, rejected, and completed to Leadership Team Mtg

•  SBC sets priorities and measures Sustainability of the business through available metrics

•  SBC prioritizes ideas, assigns, monitors AIM numbers

•  Prioritize through the 4R’s, Inputs better than Outputs, Targeted waste streams, Life cycle total cost

•  SBC celebrates department and individual accomplishments

•  SBC made up of leaders that own key objectives, and representatives from all functions in the company

Waste is: W ater A ir S olids T oxicity E nergy

The Four R’s R efuse R educe R euse R ecycle

•  Departments work AIM ideas, pass to SBC, or work with another Dept.

SBC Membership: T Hartigan….Lead J Harter D Howenstine T. Cronk T. Mayer A Saal

M. Doering K. Youkey K. Eby

•  AIM form changes to specific targeted format using 4R’s, WASTE, savings estimate

•  Rejected or ideas on deck are kept in an “Idea vault”

Input

Output

QUESTIONS?

EXTRA BACKUP SLIDES

PROJECT DETAILS •  605,180 lbs. of metal recycled & diverted away

from the landfill. •  All bathroom fixtures replaced with Low Flow

Fixtures •  New Mechanical Plan replaced 12 gas fired

heaters & 2 make up air units with 2 High Efficiency cycler units.

•  9 Daylight windows were installed •  100,000 ft2 of white roof installed •  3 ½” insulation replaced with 6” •  Replaced inefficient lights with 180 T5 High Output

motion sensor lights •  Concrete and asphalt recycled locally •  43% Reduction in estimated Electricity cost in 2014

Sustainability - Continuous Improvement Action Plan - 2014

Next Milestone Timing

Implement web-based program to encourage consumers to reduce energy & water consumption. Track feedback from consumers.

December 2014

Change Pro Wash label (after reformulation & testing) to specify cold or ambient water usage with product.

June 2015

Incorporate supplier H&S and Labor Rights into our current supplier auditing program. Assign and follow up on corrective actions and post aggregate audit results on website.

December 2014

$85 – Donate to Charity

E-Waste Day Results – 4/22/13

FACILITY Pounds Recycled / Kept out of Landfill

Corporate 1,539

PC 171

DC 465

TOTAL 2,175

Green Chemistry Initiative - DfE � Rigorous review process by EPA to ensure

products are safe for environment & consumers. http://www.epa.gov/dfe/

� 2011: Began with 3 products �  Dishwasher Magic (disinfectant) – DfE Certified �  Washer Magic – DfE Certified �  Disposer Care - ON HOLD

� 2013: �  Begin Dry Cleaner’s Secret

� 2014/2015: �  New sustainable

drain line formulations �  Complete DCS

Packaging Design Changes

50% Reduction in Packaging, while maintaining safe formulation

Packaging Design Changes

CAD# Square  Feet Qty/Pallet Total  Sq  FtG7860A4 15.58 30 467.4Layer  Pad 11.61 1 11.61

479.01119,753        

TOTAL  SQ  FT  (EACH  PALLET)TOTAL  SQ  FT  (250  PALLETS)

Clamshell  Tray

CAD# Square  Feet Qty/Pallet Total  Sq  FtG8639M1 17.45 2 34.9G8639J2 12.87 2 25.74

60.6415,160            

TOTAL  SQ  FT  (EACH  PALLET)TOTAL  SQ  FT  (250  PALLETS)

Shrink  Wrap  Sleeve

Saved 418.37 sq. ft. of cardboard & $175 for each pallet

Packaging Design Changes

DWM / WM Twin pack – non-recyclable PVC to shrink wrap