Companies committed to product sustainability are generating business value such as manufacturing cost savings, trust and brand enhancement, and employee engagement. A study released by Pure Strategies, the Path to Product Sustainability, discovered that companies achieving widespread benefits from their product sustainability programs share a common set of tactics that set them apart from other companies. This presentation will review the results from the new global market study including the three key approaches that help organizations generate value from product sustainability efforts. Insight from leading companies will provide actionable details about how to leverage the top practices, including two case studies. Global home, health, and personal care products manufacturer RB will highlight their approach to product sustainability goal development and R&D integration. Timberland will outline how their approach to sustainability assessment and supplier engagement contributes to advancing their product sustainability leadership. Attendees will learn about the path to progress efforts and generate value to the business, society, and environment through product sustainability. What You Will Learn: -Top benefits businesses are generating from product sustainability -Leading approaches to generate value from product sustainability -Trends in product sustainability program development

1. Sustainable Brands Webinar
June 18, 2014

2. 2
Agenda • Tim Greiner, Managing Director, Pure Strategies
– Business benefits
– Top practices
• Jennifer Duran, Global Head of Sustainable Innovation, RB
– Product sustainability goals
– Integrating sustainability into product development
• Colleen VonHaden, Sustainability Director, Timberland
– Supplier engagement to integrate sustainability across the supply
chain
• Q&A

3. 3

4. 4
Product sustainability measures, improves, and discloses
environmental and social impacts of products across the life cycle

5. 5
What are the top benefits companies are
already achieving from their product
sustainability efforts?

6. 32%
41%
50%
50%
62%
62%
64%
69%
71%
74%
79%
Increased sales
Supply chain risk reduction
Product material cost savings
Future regulatory risk mitigation
Packaging cost savings
Meeting consumer demands
Logistics and supply chain cost savings
Meeting retailer requirements
Trust and brand enhancement
Employee engagement and productivity
Manufacturing cost savings
6
Which business benefits have you achieved and are important to achieve from your
company’s product sustainability program?

7. 7
No single company in the survey expected a decrease in funding
this year for product sustainability

8. 8
There are best practices that
performing companies use to plan,
execute, and advance product
sustainability that help them
achieve widespread benefits

9. 9
Product Sustainability Top Practices

10. 10
Product Sustainability Top Practices

11. 11
97% of performing companies
have product sustainability goals

12. 12
Re. Think
Products
Re. Focus
Operations
Re.Commit
People
Increase Product
Sustainability
Minimize Impacts Mobilize Employees
10% Sustainable
Product Families
10% Resource
Reduction
(GHGs, Water, Waste)
3 New Awareness
Programs
1. Increase revenue by $ from more sustainable products
2. Increase sustainability of % of products
3. % of products in (sustainability/innovation) pipeline

13. 13
Product Sustainability Top Practices

14. 14
What were the most highly valued
approaches to product sustainability
assessment?

15. 15
26%
27%
32%
33%
40%
68%
72%
Industry scorecards, criteria,
standards
Life cycle assessment
Custom-designed scorecards,
guidelines, software
Non-profit scorecards, criteria,
standards
Chemicals of concern or harmful
material assessment
Customer scorecards, criteria,
standards
Supplier engagement
How valuable are the following approaches to product sustainability assessment?
Percent of all respondents rating high or very high.

16. 16
Education & Training
Supplier Summits
Index (Surveying)
Initiatives

17. 17
Product Sustainability Top Practices

18. 18
Where are performing companies
currently concentrating product
sustainability integration?
Commercial Phase | Bench-top Phase | Concept Phase

19. 19
54%
23% 23%
72%
67%
51%
Commercial
Phase
Bench-top/Pilot
phase
Concept phase
At Present In Two Years
In the product development process, where do you/will you concentrate product
sustainability efforts? High concentration as reported by performing companies
Performing companies are bringing sustainability into the product
development process

20. 20
Identify
project
priorities
Semi-
quantitative
assessment
of priorities
Standardized
assessment
Final
assessment

21. 21

22. Find the report at:
www.purestrategies.com
Tim Greiner
tgreiner@purestrategies.com

23. Security Level: Public
Sustainability at RB
Jennifer Duran
18 June 2014

24. Our Vision and Purpose
Our vision is a world
where people are
healthier and live better
Our purpose is to make
a difference by giving people
innovative solutions for
healthier lives and
happier homes

25. Our approach responds to the global
megatrends affecting the world
In particular those we can influence
Growing need
for better
health &
hygiene
Increasing
water
scarcity
Rising energy
costs and
emission
constraints
Pressures
on natural
resources
and waste
Growth of
emerging
markets
Consumers
demand
greater
transparency

26. We set a new sustainability strategy in 2012
With four big goals for 2020

27. Our strategy is organised into three key pillars
These will help us meet our four big goals
Healthier
Communities
Better
Design
Better
Production
Creating products that
use less water, energy
and packaging, and
more sustainable
ingredients.
Improving health and
hygiene behaviour
through our brands and
partnerships.
Reducing our
environmental impacts
in production, meeting
our social standards and
keeping our people safe.

28. Key strategic drivers of product-level metrics
Better
Production
www.rb.com/sustainability

29. What is a ‘more sustainable innovation’ and
how do we measure this?
Sustainable Innovation Calculator is a streamlined Life Cycle Analysis (LCA)
tool that models product interactions from cradle to grave across relevant
environmental impact categories
To qualify, a product must score better (green) in at least one of the following
categories without scoring worse (red) in any others:

30. R&D can now
assess the
impact of
choices in real
time
Innovating more sustainable products
Via our new online sustainability calculator

31. Embedding into product development process
To consider sustainability earlier
LAUNCH
PHASE
DEVELOPMENT
1 & 2
PRE
LAUNCH
SCOPING &
CONCEPT DVLT
FEASIBILITY
Brief
signed
Marketing and R&D to
consider impacts via
sustainability guidance
On pack
claims
Key milestone
1
Complete
calculator and
report status
Net
Revenu
e
Key milestone
2
Refresh
calculator and
report status

32. In 2013, we measured Net Revenue from more
sustainable products for the first time…
• £230 million NR from more
sustainable products (Q1-Q3
2013)
• Measured with the help of:
– Sustainable Innovation Calculator
– Global network of Sustainability
Champions
• This process is helping to create a
culture of sustainable innovation
• RB is committed to product
stewardship, product safety and
transparency*
What we mean by
* For more information on our product safety and stewardship programmes, see our 2013 Sustainability Report.

33. Find out more
www.rb.com/sustainability
www.happier-homes.com
sustainability@rb.com
External recognition
RB was included in both the
Dow Jones Sustainability Index
and the CDP’s Carbon
Disclosure Leadership Index in
2013

34. sustainability@rb.com

35. Timberland
Supplier Sustainability Program
Colleen Von Haden
Sustainability Director
June 2014

36. SHARED RESPONSIBILITY with INCREASED FOCUS
Compliance Audit Team
• Terms of Engagement & Global
Compliance Principles
• Compliance Audits
•Social/Labor Compliance
•Health and Safety
•Environmental Licenses
•Facility Security
Supplier Sustainability Team
• Corrective Action Plan Development
• CAP Development
• Root Cause Analysis
• Capacity Building
• Management Systems
• SAI Social Fingerprint Framework
• GSCP Environmental Framework
• Sustainable Living Environments
• Improving workers happiness & retention
• Beyond compliance; beyond factory walls
• Reducing absenteeism, improving retention
• Improving productivity and quality
RISK MITIGATION + VALUE CREATION

37. OUR GOAL
Look beyond compliance and beyond factory
walls to create a safe and healthy work
environment and community for 280,000
workers at 350 factories.
OUR RESULT
Happier, healthier, more productive
workforce . . . stronger communities and a
more resilient supply chain.

38. SUPPLIER SUSTAINABILITY STRATEGY
• Social Fingerprint (S/L
Management System)
• SLE: Sustainable Living
Environments
• SA8000 / WRAP
Worker Retention
Absenteeism
Productivity
Quality
Risk
Costs
• GSCP Environmental
Management System
• Resource Efficiency
• ISO 14001
Social / Labor
Environment
Business Impact
 Improved social & environmental performance enables improved
business performance
OPERATIONAL SUSTAINABILITY
2

39. Worker Well Being Description Business Impact
Social Fingerprint (S/L
Management System)
Improve compliance performance and improve
social/labor conditions with a Social/Labor
Management system that drives consistent
compliance and measurement of continuous
improvement
• Reduced Risk
• Reduced Cost (associated to
risk)
SLE: Sustainable Living
Environments
Addressing worker health & well-being inside and
outside factory walls to improve retention and
reduce absenteeism.
• Decreased Absenteeism
• Improved Retention,
Productivity, Quality
• Decreased Costs
Env Protection Description Business Impact
GSCP Environmental
Management System
Improve compliance performance and improve
environmental impacts with an Env Management
system that drives consistent compliance and
measurement of continuous improvement
• Reduced Risk
• Reduced Costs (associated to
risk)
Resource Efficiency More efficient operations with reduced waste and
consumption of utilities
• Reduced Costs
• Improved Image
HIGH LEVEL LINKS TO BUSINESS VALUE
10
* See Appendix for detail of social and environmental links to business impacts.

40. OUR PROCESS
In 2008, we began exploring these beliefs
more deeply with suppliers to gain a greater
understanding of workers’ needs and
opportunities for a better life.
We have conversations with workers using
participatory techniques of dialogue to
understand what aspects of basic living
needs they might be struggling with, to gain a
firsthand understanding of their perspectives.
We also look at the factory infrastructure with
management, contact community
organizations and trade unions, and consult
with nonprofit organizations and even other
brands to supplement what the workers
themselves tell us.
Sometimes workers may need more education and information about available
services or infrastructure. Other times, it may be that affordable, adequate
options and services are not readily available. In either case, action is needed

41. The Business Value of Workers’ Children’s Wellbeing
Studies show that sixty percent of lost workdays each year can be attributed to stress.
Occupational stress has causes beyond working conditions, as conflicts between the
demands of workplace and home life are increasingly common—which we discovered
when interviewing workers at Timberland’s contract factories.

42. Empowering Workers through Financial Literacy
Understanding the causes of worker stress is critical for assessing worker needs and
helping our suppliers be more productive and profitable.
Financial security is an essential part of anyone’s livelihood. Yet 2.5 billion adults around
the world don’t use formal financial services to save or borrow money. Empowering the
working poor with proper knowledge and skill—and connecting them to financial products
and services—can help them manage money more effectively, invest in economic
opportunities, and reduce risks related to illness or loss of employment – for them and
their families.

43. Clean Drinking Water – a priceless commodity
If you were to ask an American business owner what single thing was most essential to
his or her workforce’s quality of life, the answer might be the electricity to power their
equipment or cars for their employees’ commute. But in many rural, developing countries,
the answer is often much more basic: clean drinking water.

44. TBL SUSTAINABILITY – ORG CHART
Mark Newton
VP
CSR
Colleen Von Haden
Senior Manager
Supplier
Sustainability
Jackson He
Regional Manager
Asia Supplier
Sustainability
Vincent He
Asia Supplier
Sustainability
Leeka Li
Asia Supplier
Sustainability
Songpon
Pengchassmsri
Regional Manager
S. Asia Supplier
Sustainability
Rita Kodkarni
S. Asia Supplier
Sustainability
Ann Caron
Analyst
Supplier
Sustainability
Atlanta McIlwraith
Senior Manager
Community
Engagement
Brianne Wood
Manager
Community
Engagement
Jill Holt
Coordinator
Community
Engagement
Betsy Blaisdell
Senior Manager
Environmental
Stewardship
Open
Senior Manager
CSR Europe
Zeynep Kayaalp
EMEA Supplier
Sustainability
(Contractor)
Carlos Giacomozzi
LatAm Supplier
Sustainability
(Contractor)
Patrik Frisk
President
Supplier Sustainability Team
Team Skillset:
•Technical knowledge (social, H&S, Env)
•Rural Participatory Assessment
Methodologies – Worker Engagement
•Change Management
•Facilitation
•Project Management

45. Success Factors
• Positioning is key – “nice to do” v. “need to do”. Demonstrate the business case for
going beyond.
• Make the workers central to the process.
• Utilize rural participatory assessment methodologies to engage in dialogue with
the workers about very sensitive subjects
• Establish system of peer educators
• Establish CAP committees with worker representatives
• Have workers part of the solution brainstorming
• Hand-holding / Patience / Change agent skills

46. Topic Proven Value at TBL or VF Value Proven Externally
SOCIAL MANAGEMENT SYSTEMS
SAI Social Fingerprint
The Social Fingerprint framework
focuses on 9 elements that SAI deems
instrumental in evaluating an effective
social/labor management system (rated
Level 1 (basic) to Level 5 (best practice):
1.Clear and Complete Policies &
Procedures
2.Worker Involvement and
Communication
3.Complaint Management and
Resolution
4.Worker Training and Development
5.Internal Social Performance Team
(ISPT)
6.Oversight of Suppliers and
Subcontractors
7.External Verification & Stakeholder
Engagement
8.Non-compliance resolution (CAP)
process
9.Progress on Corrective Actions
RISK MANAGEMENT: Increased level of
performance on compliance audits.
A) Better Results. When factories meet
higher levels on the SAI Social Fingerprint,
they are more likely to receive initial
acceptance from VF compliance audit.
SAI Level 1: 0% Accepted
SAI Level 2: 24% Accepted
SAI Level 3: 71% Accepted
B) Consistent Results. Factories that meet
the higher levels on the SAI Social
Fingerprint are more likely to maintain the
Accepted compliance rating:
SAI Level 1: 0% Accepted YOY
SAI Level 2: 18% Accepted YOY
SAI Level 3: 82% Accepted YOY
COST REDUCTION: INFACT metrics studies
showed that consistently managed and
continuously improved workplace conditions
with improved absenteeism, retention, and
worker moral translates into reduced costs,
improved quality and productivity.
COST REDUCTION: SA8000 case studies (2008)
showed the following results, which may lead to
lower factory operational costs resulting in
lower product costs.
•Annual worker turnover decreased from 78%
to 32%
•37% decrease in lost time from accidents and
sickness
•Avg tenure increased 12 mos to 25 mos.
COST REDUCTION: KPMG study (2012) showed
the following ROI for improved HR practices and
worker/management communications, which
may lead to lower factory operational costs
resulting in lower product costs:
•Decreased Turnover 25-40%
•Factories with strong social/labor management
systems are more resilient, better positioned
for long term business survival
APPENDIX A: DETAILED LINKS TO BUSINESS VALUE

47. Topic Proven Value at TBL or VF Value Proven Externally
WORKER WELL-BEING & SLE
(Sustainable Living Environments)
Addressing workers mental and physical
health and well-being inside the factory
to ensure motivated, loyal workers
(Worker Well-being) and outside the
factory to ensure their ability to meet
basic needs and better their lives
(Sustainable Living Environments).
Conduct surveys and focused discussion
groups with workers to determine
o Causes of absenteeism and
turnover
o Causes of low moral
o Level of poverty
o Opportunities to better lives
COST REDUCTION: Anecdotal correlations
evidenced at key vendors (PY Vietnam,
Youngone Bangladesh) and at owned
facility (RFC), regarding improved worker
moral, absenteeism, retention as a result
of SLE type projects which may lead to
lower factory operational costs resulting in
lower product costs.
RISK MANAGEMENT: NGO campaigns for
Living Wages remain strong. Feedback
received from NGOs confirmed that in lieu
of a Living Wage policy, TBL’s SLE initiative
is an acceptable alternative approach to
addressing poverty in supply chains,
thereby reducing the risk of negative
campaigns against the brand.
SALES GROWTH: Marketing content
derived from SLE projects’ stories used in
product marketing material.
COST REDUCTION: KPMG study (2012) showed
ROI for investments in worker comfort,
performance-based wage incentives, and
improved worker/manager relations resulted in
decreased turnover (36%), rework (65%) and
absenteeism (53%), which may lead to lower
factory operational costs resulting in lower
product costs.
COST REDUCTION: BSR study (2010) quantified
$3-4 return for every $1 spent on worker health
program investments by way of improved
absenteeism and retention resulting in
improved lost time and lower costs associated
with recruitment and training, which may lead
to lower factory operational costs resulting in
lower product costs.
APPENDIX B: DETAILED LINKS TO BUSINESS VALUE

48. Topic Proven Value at TBL or VF Value Proven Externally
MANAGEMENT SYSTEMS
GSCP Environmental Framework
The GSCP framework evaluates and
guides factories in 9 environmental
impact areas (rated Level 1 (basic) to
Level 3 (best practice):
1. Environmental Management
System
2. Energy Use
3. Water Use
4. Wastewater Discharge
5. Air Emissions
6. Waste Management
7. Hazardous Substances
8. Emergency Planning and Incident
Prevention
9. Nuisances
RISK MANAGEMENT: Reduced brand risk
from suppliers having improved
environmental compliance and reduced
environmental impacts.
 fight erroneous claims and
potentially negative press from NGOs
COST REDUCTION: Less energy, water and
waste generated by suppliers result in
reduced related costs for suppliers.
COST AVOIDANCE: Less resource intense
factories are better positioned for long term
operations, reducing VF costs to change
suppliers in the future
 Water efficiency and wastewater recycling
reduces water dependency in areas where
water risk is growing
 Energy efficiency and use of renewable
energy reduces power and manufacturing
disruptions caused by aging and
overburdened grids
 Tightening environmental regulations have
the potential to shut suppliers down that
are resource intensive or have a history of
non-compliance
COST AVOIDANCE: Reduced hazardous
chemical use results in lower hazardous waste
disposal costs and risk.
PRODUCT QUALITY: Quality, Lean and
Environmental Management Systems require
the same core components and therefore are
highly complementary and reinforcing.
Commonly you’ll see the two systems
implemented together with the same core
processes resulting in overall better
management of process flow and waste.
APPENDIX B: DETAILED LINKS TO BUSINESS VALUE

49. Topic Proven Value at TBL or VF Value Proven Externally
Supplier ENERGY EFFICIENCY
engagement, audits and improvements
COST REDUCTION: Transparency into
reduced operational costs at factory
allowing for more informed price
negotiations
COST AVOIDANCE: Less energy intense
factories are better positioned for long-term
operations, reducing VF costs to change
suppliers in the future.
SALES GROWTH: Reduced energy use in supply
chain results in improved product sustainability
scores, as demanded by retailers and
consumers.
WASTEWATER effluent discharge
treatment requirements
RISK MANAGEMENT: Reduced brand risk from
discharging polluted water into the local
environment and community.
COST REDUCTION: Treated wastewater can be
recycled, thereby improving water efficiency at
factory.
APPENDIX B: DETAILED LINKS TO BUSINESS VALUE

50. Find the report at:
www.purestrategies.com
Questions & Answers