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GREEN PORTFOLIO FRAMEWORK CAPTURING OPPORTUNITIES TO IMPROVE ENVIRONMENTAL AND BUSINESS PERFORMANCE JULY 2009

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This slide deck provides a working version of the Green Portfolio Framework (GPF) Handbook (based on our work with KKR as piloted at several of their companies) and includes a number of resources to help companies get started or continue tracking and improving business and environmental performance on an ongoing basis. We believe this framework is a meaningful way to improve efficiency and build value, especially in difficult economic times, and hope that you find these resources useful.

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Page 1: Green Portfolio Framework 7 09

GREEN PORTFOLIO FRAMEWORK

CAPTURING OPPORTUNITIES TO IMPROVE ENVIRONMENTAL AND BUSINESS PERFORMANCE

JULY 2009

Page 2: Green Portfolio Framework 7 09

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GREEN PORTOLIO FRAMEWORKWELCOME & CONTENTS

Welcome to the Green Portfolio Framework, a process & set of resources designed to enable managers to measure & improve business & environmental performance.

The Green Portfolio Framework (GPF) was developed through Environmental Defense Fund’s (EDF) partnership with private equity industry leader Kohlberg Kravis Roberts (KKR) and pilot tested with three portfolio companies in 2008. The pilot helped the three companies – U.S. Foodservice, PRIMEDIA and Sealy Corporation – together realize savings of $16 million per year and avoid 25,000 metric tons of greenhouse gas emissions, 3,000 tons of paper products and 650 tons of material waste annually.

This presentation provides a working version of our Green Portfolio Framework Handbook and includes a number of resources to help you get started or continue tracking and improving business and environmental performance on an ongoing basis. Specific resources include:

1. Overview of the Green Portfolio Framework (p 4) – Summary of the steps for implementing the GPF.

2. Environmental Performance Metrics (p 5) – Table identifying the framework’s Key Environmental Performance Areas (KEPAs) and the related core (absolute) and management (productivity) metrics for tracking and improving performance.

3. Company Implementation Playbook (p 6) – Guide and timeline for implementing the GPF.

4. Company Example (p 7) – Illustrative example of a company implementation of the GPF.

5. Company Resources (p 12) – Worksheets and available tools and resources for assessing and improving your company’s environmental performance.

• Materiality Assessment Table & Matrix (p 13) – Resources to help evaluate and prioritize the KEPAs based on what is most relevant to your organization.

• Additional Resources (p 16)– List of tools and resources to help assess and improve your company’s environmental performance.

• GHG Conversion Factors (p 17) – Common GHG conversion factors for determining GHG emissions.

6. Case Studies (p 18) – U.S. Foodservice, PRIMEDIA and Sealy case studies summarizing 2008 actions, results, and future plans.

7. Background on EDF (p 23) – Background on EDF’s history, accomplishments, approach, results and corporate partners.

We believe this process is a meaningful way to build value for your organization, especially in difficult economic times, and hope that you find these resources useful. We look forward to hearing about your results and lessons learned.

Environmental Defense FundJuly 2009 – Working Draft

Page 3: Green Portfolio Framework 7 09

GREEN PORTFOLIO FRAMEWORK

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Develop Goals & Action Plan

GREEN PORTFOLIO FRAMEWORKOVERVIEW

The GPF is a four-step process designed to help companies assess, improve & track environmental performance.

Select KEPAs1 Establish Metrics & Baseline

1. 2. 3.

• Review current environmental practices

• Assess environmental & business impacts across value chain

• Prioritize KEPAs based on materiality assessment results

• Establish key metrics (absolute & productivity) for assessing performance & progress

• Collect historical data & establish baselines for selected metrics

Measure & Report Results

4.

• Identify operational changes for improving performance against selected metrics

• Develop action plan with goals, timeline & incentives for improving performance

• Implement action plan

• Communicate action plan, goals & timeline to broader organization

• Track & report on performance against baseline & goals (quarterly)

• Reassess KEPAs & amend action plan as needed

• Establish senior management commitment

• Identify project lead/team

• Review Green Portfolio Framework resources

• Define objectives & timeline

Kickoff

-- Kickoff --

1 Key Environmental Performance Area (KEPA). See Environmental Performance

Metrics Table for additional detail (p 5).

Environmental Defense FundJuly 2009 – Working Draft

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5

The GPF defines five Key Environmental Performance Areas (KEPAs) & related metrics for improving environmental & business performance.

KEPAsCore metrics

(absolute)

Management metrics1

(productivity)

Greenhouse gas (GHG) emissions

•Energy use (BTUs)

•Energy costs ($)

•GHG emissions (tons)

•Energy intensity (BTUs/$ revenue or unit)

•GHG intensity (GHG/$ revenue or unit)

Waste •Solid & haz waste produced (tons)

•Solid & haz waste management costs ($)

•Waste intensity (tons/$ revenue or unit)

Water •Water use (gallons)

•Water costs ($)

•Water intensity (gallons/$ revenue or unit)

Forest products •Paper, packaging &/or wood (tons)

•Paper, packaging &/or wood costs ($)

•Forest resource intensity (tons/$ revenue or unit)

Priority chemicals •Inventory & management process (y/n)

•Priority chemical use (tons)

•Priority chemical management costs ($)

•Chemical intensity (tons/$ revenue or unit)

GREEN PORTFOLIO FRAMEWORKENVIRONMENTAL PERFORANCE METRICS

1 Management metrics will vary by company and will be used to measure the impacts of specific operational changes intended to drive value and reduce environmental impacts.

Environmental Defense FundJuly 2009 – Working Draft

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GREEN PORTFOLIO FRAMEWORKCOMPANY IMPLEMENTATION PLAYBOOK

The Company Implementation Playbook is a guide & timeline for implementing the steps of the GPF.

1

2

3

4

% Complete Month 1 Month 2 Month 3 Month 4 Month 5 Month 6

Kickoff

Estalish senior management commitment 100%

Identify project lead & team 100%

Review Green Portfolio Framework Resources 100%

Define ojectives & timeline 100%

Select KEPAs

Review current environmental practices 100%

Assess environmental & business impacts across the value chain 50%

Prioritize KEPAs based on materiality assesment results 50%

Establish Metrics & Baseline

Establish key metrics (absolute & productivity) for assessing performance & progress

Collect historical data & establish baselines for selected metrics

Develop Goals & Action Plan

Identify operational changes for improving performance against selected metrics

Develop action plan with goals, timeline & incentives for improving perfomance

Implement action plan

Measure & Report Results

Communicate action plan, goals & timeline to broader organization

Track & report performance against baseline and goals (quarterly)

Reassess KEPAs & amend action plan as needed

Key: Recommended Duration

Task Progress

Green Portfolio Framework

Sample Company Implementation Playbook

Environmental Defense FundJuly 2009 – Working Draft

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GREEN PORTFOLIO FRAMEWORKCOMPANY EXAMPLE

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GREEN PORTFOLIO FRAMEWORKCOMPANY EXAMPLE – SELECT KEPAS

Prioritize the five KEPAs by assessing relative business & environmental impacts.

GPF defines 5 KEPAs for measurement & management:

Develop Goals & Action Plan

Select KEPAsEstablish Metrics &

Baseline

1.

Measure &Report Results

1. Greenhouse Gases (GHG)

2. Water

3. Waste

4. Forest Products

5. Priority Chemicals

KEPA Review Materiality Assessment Prioritization

KEPAs are evaluated based on environmental & business impacts across the organization’s value chain:

SupplyChain

Ops & Facilities

Distribution& Fleet

Use & Disposal

Value Chain Stages

KEPAs

Results from the materiality assessment are mapped on a matrix to determine highest priority KEPAs in corresponding value chain stages:

L/M/HBus./Env.

impact

H

L M HB

usin

ess

Impa

ctEnvironmental Impact

• Water (D&F)• Forest res. (O&F)

• GHGs (D&F)

L• GHG (SC)• Waste (SC)• Forest resources (SC)

• Priority chem (O&F)• GHGs (O&F)

M• Waste (O&F)• GHGs (U&D)

• Water (O&F)• Priority chem (D&F)

• Water (SC)• Waste (U&D)• Priority chem (SC)

• Forest res (U&D)

Low impact

High impact

Kickoff

Environmental Defense FundJuly 2009 – Working Draft

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32,350

31,400

33,500

32,090

32,000

Core(M tons CO2)

GREEN PORTFOLIO FRAMEWORK COMPANY EXAMPLE – ESTABLISH BASELINE & METRICS

Establish metrics (core & management) & baselines by collecting historical data for high priority KEPAs in relevant value chain stages.

Develop Goals & Action Plan

Select KEPAsEstablish Metrics &

Baseline

2.

Measure &Report Results

0.55

0.54

0.57

0.48

0.54

Management(Gals/stop)

12.3

11.8

13.2

10.4

12.0

Financial($M fuel cost)

Metric (Unit)

Historical Data*

2008

2007

2006

2005

Year

*Historical data are illustrative

Core Baseline

Management Baseline

Financial Baseline

GHG, Distribution & Fleet

Forest Resources, Product Use & Disposal

Waste, Operations & Facilities Core & Management Metrics

Each KEPA has “core” & “management” metrics for measuring environmental & financial performance. Management metrics are company specific. Examples include:

• lbs waste/unit

• kWh/$ Rev

• gal/stop

• kWh/sq ft store

Baseline Calculation

Kickoff

Environmental Defense FundJuly 2009 – Working Draft

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GREEN PORTFOLIO FRAMEWORKCOMPANY EXAMPLE – DEVELOP GOALS & ACTION PLAN

Develop a detailed action plan for improving performance against selected metrics, including business & environmental goals, timeline & incentives.

Develop Goals& Action Plan

Select KEPAsEstablish Metrics &

Baseline

3.

Measure &Report Results

Goals for Improvement*

*Goals & Action Plan data are illustrative

Action Plan*

1.

2.

Proposed Operational Changes

Extend speed governor to entire truck fleet

Improve recycling program to reuse materials

Environmental Financial MilestonesImpact

4% reduction in CO2

6% reduction in waste

$8M in fuel costs

$7M in material costs

Retrofits by 3/09

Operational change by 9/09

Priority Chemicals

Forest Products

WasteGHG Water

Core2% baseline decrease

in total CO2

Management7% decrease in

gal/stops

Metric

3% baseline decrease

in solid waste

8% decrease in lbs

waste/unit

5% baseline decrease

in paper products

15% decrease in

paper/$ Rev

Kickoff

Environmental Defense FundJuly 2009 – Working Draft

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GREEN PORTFOLIO FRAMEWORKCOMPANY EXAMPLE – MEASRUE & REPORT RESULTS

Track & regularly report on performance against baselines & goals.

Develop Goals& Action Plan

Select KEPAsEstablish Metrics &

BaselineMeasure &

Report Results

Priority Chemicals

Forest Products

WasteGHG Water

Measure & Report Progress

Core 31,555 M tons, CO2

Management

4.

Financial

MetricQ1

Q2Q3

Kickoff

Q4

Environmental Defense FundJuly 2009 – Working Draft

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COMPANY RESOURCES

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GREEN PORTFOLIO FRAMEWORKMATERIALITY ASSESSMENT INSTRUCTIONS

Use the Materiality Assessment Table & Matrix on the following slides to assess the impacts of your operations on the five KEPAs & the related business implications for

your company.

Use the following resources to assess the impact of your operations on each Key Environmental Performance Areas (KEPAs: GHG, waste, water, forest resources and priority chemicals) and the related business implications for your company. Evaluate the environmental and business impact (high, medium, or low) of each value chain stage (Supply Chain (S), Operations & Facilities (O), Distribution & Fleet (D), and Use & Disposal (U)) on the five KEPAs using considerations like the ones below and the table on the following page. Then plot the results according to their business and environmental impact on the Materiality Assessment Matrix.

Sample Environmental Considerations:Do the organization’s activities impact or have the potential to impact the KEPA?(H – our core business impacts this issue, M – our non-core business impacts this issue, L – our business does not impact this issue)Does the organization have direct control or influence over the impact on the KEPA? (H – our choices directly affect our impact on this KEPA, M – we, along with our peers and other players in our industry, can affect our impact on this KEPA, L – we have no choices currently to change our impact on this KEPA)Are the current / potential impacts significant in comparison to other industries or peers in the same sector?(H – we are one of the top companies in our industry, which influences this issue, M – we are not a major player in our industry, which influences this issue, L – our industry does not influences this issue)

Sample Business Considerations:Does this KEPA represent a cost to the organization?(H – this currently is or will be a significant cost, M – this represents a cost, but not significant, L – this does not represent a cost and we do not anticipate it will)Are there short- or long-term reputational risks or opportunities associated with the KEPA?(H – our influential stakeholders care significantly about this issue, M – the general public cares about this issue, L – few or no stakeholders care about this issue)Would addressing the risks / opportunities support the organization’s business strategy and objectives? (H – this issue directly supports our business and growth goals, M – this issue aligns with our business and growth goals, L – this issue does not relate to our business or growth goals)

Environmental Defense FundJuly 2009 – Working Draft

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KEPAValue Chain Stage

Supply chain Operations & Facilities

Distribution & Fleet

Use & Disposal

GHGEnergy use (kWhs or BTUs) & GHG emissions (metric tons)Energy costs ($)

EnvH / M / L

BusH / M / L

EnvH / M / L

BusH / M / L

EnvH / M / L

BusH / M / L

EnvH / M / L

BusH / M / L

Comments: Comments: Comments: Comments:

WaterWater use (gallons)Water costs ($)

EnvH / M / L

BusH / M / L

EnvH / M / L

BusH / M / L

EnvH / M / L

BusH / M / L

EnvH / M / L

BusH / M / L

Comments: Comments: Comments: Comments:

WasteSolid & hazardous waste produced (tons)Solid & hazardous waste management & material costs ($)

EnvH / M / L

BusH / M / L

EnvH / M / L

BusH / M / L

EnvH / M / L

BusH / M / L

EnvH / M / L

BusH / M / L

Comments: Comments: Comments: Comments:

Forest ResourcesPaper, packaging &/or wood (tons)Paper, packaging &/or wood costs ($)

EnvH / M / L

BusH / M / L

EnvH / M / L

BusH / M / L

EnvH / M / L

BusH / M / L

EnvH / M / L

BusH / M / L

Comments: Comments: Comments: Comments:

Priority ChemicalsPriority chemicals inventory (y/n)Priority chemicals use (tons)Management costs of priority chemicals ($)

EnvH / M / L

BusH / M / L

EnvH / M / L

BusH / M / L

EnvH / M / L

BusH / M / L

EnvH / M / L

BusH / M / L

Comments: Comments: Comments: Comments:

GREEN PORTFOLIO FRAMEWORKMATERIALITY ASSESSMENT TABLE

Capture your assessment of & relevant comments on the environmental & business impacts related to each KEPA.

Environmental Defense FundJuly 2009 – Working Draft

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H

H

Environmental Impact

ML

M

L

Bus

ines

s Im

pact

GREEN PORTFOLIO FRAMEWORKMATERIALITY ASSESSMENT MATRIX

Map your assessment of the environmental & business impacts related to each KEPA from the Materiality Assessment Table to determine their relative priority.

Environmental Defense FundJuly 2009 – Working Draft

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EDF’s Innovation Exchange (http://innovation.edf.org/home.cfm)

The Innovation Exchange is a dynamic online resource of tools and best practices aimed at helping companies make green business the new business as usual. In

addition to giving businesses access to proven best practices that increase environmental performance and reduce costs, the site serves as a venue for information

sharing where business leaders can exchange ideas and build on the power of collective innovation.

GHG Protocol (http://www.ghgprotocol.org)

The GHG Protocol serves as the foundation for most GHG standards and programs worldwide and is an international accounting tool to help businesses and

governments understand, quantify, and manage greenhouse gas emissions. For standards and guidance preparing a GHG inventory, refer to GHG Protocol’s

Corporate Standard. GHG Protocol’s site also provides a list of cross-sector and sector-specific calculation tools for registered users.

Water Planner (http://www.gemi.org/waterplanner)

GEMI’s Collecting the Drops: A Water Sustainability Planner is a planning process to help users identify a facility’s relationship to water, challenges and

opportunities, and other considerations related to water use. The planner takes users through three modules: facility water use and impacts; water management risk

assessment; case examples and links for further examination.

Paper Calculator (http://www.edf.org/papercalculator)

EDF’s Paper Calculator is an online tool that helps companies and consumers make better paper and packaging choices. Based on research that examines the

environmental impact of paper through its lifecycle, the calculator provides data on wood use, energy, GHG, wastewater, etc. based on quantity and post-consumer

recycled content for selected papers.

EPA WasteWise (http://www.epa.gov/epawaste/partnerships/wastewise/index.htm)

Waste reduction program aimed at reducing municipal waste using prevention and recycling techniques that result in cost savings for participating entities. The

WasteWise Endorser Program provides an educational component by engaging endorsers to educate members about the benefits of solid waste reduction and recruit

new WasteWise partners.

EDF 4Cs of Climate Action (www.edf.org/4cs)

This online brochure provides an introduction to the hierarchy for corporate climate action: Conserve energy, convert to lower carbon energy, choose quality offsets

and call for action. Outlines steps and suggests resources for managing corporate climate impact.

GREEN PORTFOLIO FRAMEWORKADDITIONAL RESOURCES

Use the following resources to help measure & manage the five KEPAs & identify best practices for improving performance.

Environmental Defense FundJuly 2009 – Working Draft

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1, 2 World Resources Institute/World Business Council for Sustainable Development GHG Protocol Initiative, Mobile Combustion CO2 Emissions Calculation Tool. January 2005. Version 1.33 Forthcoming.4, 5 Department of Energy, Energy Information Administration, Voluntary Reporting of Greenhouse Gases Program Fuel and Energy Source Codes and Emissions Coefficients. http://www.eia.doe.gov/oiaf/1605/coefficients.html. Accessed 10 April 2009..

Air travel1

Short haul (<281 miles): 0.2897 kg CO2/passenger mileMedium haul (281-994 miles): 0.2028 kg CO2/passenger mileLong haul (>994 miles): 0.1770 kg CO2/passenger mile *disregard class of serviceRail2

Intercity rail (Amtrak) 0.1909 kg CO2/ passenger mile

Purchased electricity3

EPA region-specific factors http://cfpub.epa.gov/egridweb/ghg.cfmOn-site combustion4

Natural gas (pipeline): 12.693 lbs CO2/ccf Propane: 12.669 lbs CO2/gallonFuel oil No. 1, 2, 4: 22.384 lbs CO2/gallon

Transportation fuels5

Gasoline: 19.564 lbs CO2/gallonDiesel: 22.384 lbs CO2/gallonJet Fuel: 1.095 lbs CO2/gallon

GREEN PORTFOLIO FRAMEWORKADDITIONAL RESOURCES – GHG FACTORS

Common GHG conversion factors for determining GHG emissions performance based on energy use & travel.

Environmental Defense FundJuly 2009 – Working Draft

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CASE STUDIES

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CASE STUDIESSUMMARY OF 2008 RESULTS

$8.2M

Company Environmental ImpactsFinancial Impacts

• 4% fleet efficiency improvement (gal of fuel/ton of product)

• 22,000 tons of CO2 emissions reduced (4,400 cars)

• 22% increase in material efficiency (paper use/$ Rev)

• 3,000 tons reduction in paper (40,000 trees)$2.9M

• 9% fleet efficiency improvement (gallons/stop)

• 3,000 tons of CO2 emissions reduced (600 cars)

• 16% reduction in material scrap (lbs waste/unit)

• 650 tons of solid waste reduced (46 garbage trucks)

$1.2M

$4M

At just three of KKR’s portfolio companies, the Green Portfolio Framework helped identify $16.4 M in annual savings & avoided 25,000 metric tons of CO2 emissions,

3,000 tons of paper & 650 tons of waste.

TOTAL IMPACTS

Annual

Operational Savings Enterprise Value Added*

*EVA = Operational savings * 7 (average EBITDA multiple)

$16.4M

$57.4M

$20.3M

$8.4M

$28M

$114.1M

In 2009, five additional companies began participating in the program – Accellent, Biomet, Dollar General, HCA and SunGard..

Environmental Defense FundJuly 2009 – Working Draft

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CASE STUDY: US FOODSERVICEGREEN FLEET

US Foodservice – a premier foodservice distributor – evaluated its impacts on its key environmental performance areas & is actively improving the efficiency of its truck fleet to

decrease GHG emissions from product transport.

Goal: To reduce GHG emissions from product delivery

Actions:• Established a GHG baseline• Measured & managed fuel consumption per ton of product moved• Implemented targeted driver policies, including idling goals• Created business process improvements, such as efficient routing• Improved truck technologies, including the addition of speed governors

Results: • Improved fleet efficiency 4% (gallons/ton of product moved)• Saved $8.2 million in fuel cost• Avoided over 22,000 metric tons of CO2 emissions (equivalent to 4,400 cars)

Future Plans:• Established 2009 goals to further reduce fuel & emissions• To meet these goals, the U.S. Foodservice plans to scale up a number of successful, low-investment initiatives, including driver awareness programs, automatic idle shutoff & speed controls. USF is also assessing new initiatives, such as improving trailer cooling practices & other technology solutions.

Environmental Defense FundJuly 2009 – Working Draft

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CASE STUDY: SEALYGREEN FLEET & SOLID WASTE

Sealy – the largest bedding manufacturer in North America – evaluated its impacts on its key environmental performance areas & is actively improving efficiency to reduce waste in

product manufacturing & decrease GHG emissions from product transportation.

Goal: To reduce solid waste from product manufacturing & reduce GHG emissions from product delivery

Actions:• Established a GHG baseline for its fleet • Developed a baseline for facility solid waste management • Recycled raw materials • Improved manufacturing processes • Implemented targeted driver policies • Improved truck technologies

Results: • Saved $1.2 M in annual fuel costs & more than $4 M in annual material costs• Avoided over 3,000 metric tons of CO2 emissions (equivalent to 600 cars)• Improved fleet efficiency (gallons/stop) by almost 9% compared to a 2007 baseline • Avoided 650 tons of solid waste, (equivalent to 46 garbage trucks)• Reduced scrap per bed (tons/unit) by 16% compared to a 2007 baseline

Future Plans:• Further roll-out to improve fleet routing software, speed governor installation, idling time reduction & drivers’ incentives to improve fuel economy •Manufacturing process improvements & packaging reduction, in addition to energy efficiency programs

Environmental Defense FundJuly 2009 – Working Draft

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CASE STUDY: PRIMEDIAFOREST RESOURCES

PRIMEDIA – a leading provider of print, Internet & mobile solutions designed to enable consumers to find a place to live – evaluated its impacts on its key environmental

performance areas & is actively increasing online efforts & resizing its publications to reduce its use of forest resources.

Goal: To reduce paper use in products

Actions:• Established a baseline for paper use • Redesigned publications, such as resizing & use of lighter paper • Encouraged online access to resources

Results: • Saved $2.9 M in material costs • Reduced more than 3,000 tons of paper use (equivalent to more than 40,000 trees)• Improved efficiency (paper use/revenue) by 22% compared to a 2007 baseline

Future Plans:• A further 20% reduction in paper usage below the 2007 baseline through redesigning more publications &

pursuing additional online strategies • Exploration of opportunities to expand publication recycling programs currently encouraged at all locations• Increased sales efficiency & delivery routing; consolidation of office & warehouse space

Environmental Defense FundJuly 2009 – Working Draft

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BACKGROUND ON EDF

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• Stabilize the earth’s climate

• Protect ocean ecosystems

• Protect & restore critical land & freshwater ecosystems

• Preserve & enhance human health

A leading national nonprofit organization representing 700,000 members. Since 1967, EDF has linked science, economics, law & innovative private-sector partnerships to

create breakthrough solutions to the most serious environmental problems.

Offices Staff Budget

• Austin, TX

• Beijing, China

• Bentonville, AR

• Boston, MA

• Boulder, CO

• New York, NY

350 total staff:

• Scientists

• Economists

• MBAs

• Ph.D.s

• Attorneys

• Los Angeles, CA

• Raleigh, NC

• Sacramento, CA

• San Francisco, CA

• Washington, DC

• Total operating expenses for FY’08 exceeded $100M

• Budget fully funded by foundations, government & private donations

Resources

Goals

ENVIRONMENTAL DEFENSE FUND (EDF)

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1967 – A small group of scientists incorporates EDF after winning an historic battle against the pesticide DDT

1985 – EDF convinces federal regulators to phase out the use of leaded gasoline

1990 – New Clean Air Act uses our innovative market-based approach to reduce air pollution & acid rain

1991 – Partnership with McDonald’s eliminates over 300 M lbs of waste & saves millions of dollars

2000 – Worked with landowners to enroll 2 M acres in Safe Harbor programs to protect endangered wildlife

2004 – Partnership with FedEx brings the first hybrid delivery trucks to the streets of CA, NY & FL

2006 – Worked with fishermen in the Gulf of Mexico to implement a “catch share” program to rebuild red snapper stocks, now a model for troubled fisheries nationwide

2006 – Helped win permanent protection of the world’s largest marine reserve in Hawaii, which is larger than all of America’s national parks combined

2007 – Collaborated with more than two dozen of the world’s leading corporations – Alcoa, BP America, Caterpillar, Duke Energy, DuPont, GE, PG&E & others – to support a U.S. market-based cap on carbon emissions

2008 – Teamed up with Kohlberg Kravis Roberts (KKR) to develop tools & metrics to help portfolio companies measure & improve environmental performance

BACKGROUND ON EDFACCOMPLISHMENTS

EDF has a long history of working with businesses, governments & communities to develop innovative environmental solutions.

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Environmental Improvements

Financial Benefits

Innovative Approaches

EDF partners with businesses to develop environmental improvements, financial benefits, & innovative approaches, which result in transformational industry change.

BACKGROUND ON EDFCORPORATE PARTNERSHIPS PROGRAM APPROACH

Innovative Approaches

• Analytical tools & metrics

• Market-based solutions

• Supply chain optimization

• New products/services

• Profit growth

• Risk reduction

• Brand enhancement

• Investor attraction

Financial Benefits

Environmental Improvements

• Pollution reduction

• Ocean protection

• Ecosystem restoration

• Health improvement

By working with industry leaders – our projects create industry-wide ripple effects

Industry Change

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BACKRGROUND ON EDF CORPORATE PARTNERSHIP RESULTS

We are focused on action, not advice. EDF helps companies identify, create & implement best practices that create business & environmental benefits.

EDF’s unique approach drives measurable environmental & financial results.

$120 M since 1990

Corporate Partner

Environmental Improvements

Estimated Business Benefits

Replaced Styrofoam “clamshell” packaging & cut 300 million pounds of solid waste over ten years

Increased the efficiency of over 60,000 fleet vehicles & cut CO2 emissions by 14%

Redesigned overnight packaging to reduce waste, water energy & air emissions by 15%

$12 M since 1997

$12 M since 2008

Reduced packaging, improved fleet & building energy efficiency, created supply chain efficiencies

$100M* since 2005

* EDF works as part of a consortium with Wal-Mart. Financial benefits include building & fleet efficiency improvements.

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BACKGROUND ON EDF PARTNERS

EDF has a 20 year track record of success in partnering with leading businesses.

To maintain its independence and credibility, EDF does not accept funding from its corporate partners.

Environmental Defense FundJuly 2009 – Working Draft