4 Sustainability executives from Campbell Soup, BASF, Ingersoll Rand and Roche share the advantages for their organizations in going green. Facilitated by Victoria Zelin, of a human capital consulting firm. May 2009

1. The Business Case for Going Green—
NOW!
Panel at Fairleigh Dickinson University’
s
Jumpstarting the New Green Economy
May 19-21, 2009
Victoria Zelin, Hudson Gain Corporation, Moderator
Ron Reisman, Board of Public Utilities
Kevin Tubbs, Ingersoll Rand
Ed Madzy, BASF
Dave Stangis, Campbell Soup
Hugh Tole, Roche
Five Penn Plaza, 23rd Floor, New York, NY 10001 Phone 212.835.1601 www.hudsongain.com
Copyright ©2009 Hudson Gain Corporation

2. Hudson Gain’Evolution to Green
s
Executive Search Assessment
New Hire Integration Talent Talent Leadership Development
Acquisition Development
Recruitment Process Performance Improvement
Improvement
Sales Effectiveness
Sustainable
Leadership
Succession Planning
Staffing & Engaging
for the Green Economy Executive Outplacement
Organizational Change
2

3. The Hudson Gain CSO Research Study*
Going Green?
Don't Hire a Sustainability Chief Until You Read
This Study!
The Role of the Chief Sustainability Officer in
Corporations
* Available on Slideshare or contact victoria.zelin@hudsongain.com 908 306 0272
3

4. Thanks for joining us
Victoria Zelin
Senior Vice President
Sustainability Practice Leader
Hudson Gain Corporation
908.306.0272
victoria.zelin@hudsongain.com
Copyright ©2009 Hudson Gain Corporation
4

5. Putting Energy Efficiency to Work
for Your Business
Jumpstarting the New Green Economy
Fairleigh Dickinson University
May 20, 2009

6. Office of the Business Energy
Ombudsperson
n Legislatively-
Legislatively-mandated office
n N.J.S.A. 48:2-92 et seq.
48:2-
n Mission is “ to provide education and
…
assistance to any business with regard to
energy costs, third-party suppliers, State
third-
energy programs, subsidies and grants… ”

7. The Governor’ Challenge
s
n Energy Master Plan calls for 20% reduction in
projected energy growth by 2020
n Would yield annual electric savings of 20,000 gigawatthours
n Would also yield annual heating savings of 119 trillion Btu
n Energy savings achieved through:
n Building Codes
n Appliance Standards
n Appliance Replacement
n Existing Buildings

8. The Case for Energy Efficiency
n Cost-
Cost-effective EE improvements to the state’ s
3.7 million existing buildings would save about
15,000 GWh and 98 TBtu by 2020
n This represents 75% of EMP goal on energy savings
n Goal would require addressing more than 300,000 per year
through 2020 –more than the total number of buildings
addressed in the first 5 years of the Clean Energy Program

9. The Importance of Business
n Businesses account for two-thirds of the state’
two- s
electric and natural gas consumption
n 68.5% of electric savings produced by the Clean
Energy Program came from businesses
n Business customers saved $11 for every $1
invested in EE, compared to $4 for residential

10. Communicating the Message
n Increase education and outreach to business
n Creating partnerships with business groups and
communities
n “Best Practices”Manuals for 10 industry groups
n Supermarket manual now being developed
n Local government, hospitality, retail, restaurants and
health care facilities among other groups

11. Energy Efficiency Programs
n SmartStart Buildings Program
n New construction, renovation and upgrades
n Design support, technical assistance and financial
incentives for qualifying equipment
n Electric chillers
n Natural gas cooling
n Natural gas heating and water heating
n Premium efficiency motors
n Prescriptive lighting
n Lighting controls
n Custom measures

12. Energy Efficiency Programs (cont’
d)
n Pay for Performance (new in 2009)
n Existing businesses with average annual peak demand over
200 kW (supermarkets, hospitals, hotels, office buildings,
manufacturing, etc.)
n Incentives of $5,000 to $50,000 for development of Energy
Reduction Plan (based on $.10 per square foot)
n Incentives up to $1 million per service payable on installation
of recommended measures and completion of measurement
and verification report
n Additional incentives for combined heat and power, if
feasible

13. Energy Efficiency Programs (cont’
d)
n Direct Install
n Expected rollout during summer of 2009
n Targeted to businesses with average annual peak demand
below 200 kW (restaurants, small retail, professional offices,
etc.)
n Direct installation of prescriptive measures (lighting,
refrigeration, heating equipment, etc.) by pre-qualified
pre-
contractors
n Program pays contractor directly for up to 80% of installed
cost; customer pays contractor remaining 20%

14. Sample Incentives Paid in 2008
Customer Total Incentives Technology
Lowes $955,841 (multiple locations) Lighting
McCaffey’Market
s $200,000 Custom Electric
Robesco, Inc $197,435 Custom Electric
Woodbury Board of Education $142,234 Ground Source Heat Pumps
East Coast Warehouse $140,000 Lighting
Connell Real Estate $120,000 Electric Chillers
Deluxe Corporation $127,709 Custom Electric
Newark Public Schools $114, 832 Geothermal Heat Pump, Custom Electric
Chanel Inc. $103,625 Custom Electric, Custom Gas
Trump Plaza $102,087 Variable Frequency Drives, Custom Electric
2 Gateway Center Partners $100,000 Lighting
Crossroads Condominium Assoc. $100,000 Electric Chillers
Cardinal Health $56,259 Custom Electric
Dunkin Donuts $43,900 Lighting
Munich Reinsurance America, Inc $26,000 Variable Frequency Drives

15. New Jersey’ Clean Energy Program
s
n On the web: www.njcleanenergy.com
n On the phone: 1-866-NJ SMART
866-

16. “The Ombuddies”
n Joe Sullivan, Business Energy Ombudsman
n joseph.sullivan@bpu.state.nj.us
n (609) 610-0433
610-
n Ron Reisman, Manager of Business Outreach
n ronald.reisman@bpu.state.nj.us
n (973) 648-3908
648-

17. Ingersoll Rand
Business Case for Sustainability
Kevin R. Tubbs
Director, Environmental
Affairs
May 20, 2009

18. Who We Are
•A $13 billion diversified industrial company
•Over 60,000 employees worldwide
•About 100 manufacturing facilities in every major
geographic region
•Strategic brands are #1 or #2 in their markets
•World leader in creating and sustaining safe,
comfortable and efficient environments.
18 General Overview

19. Market-leading Brands
Comfort and Climate Control Brands
#1 North America #1 Worldwide #1 US
display cases #2 Worldwide
transport
#1 North America refrigeration Commercial HVAC
service provider Equipment
Industrial Brands Security Brand
#1 Worldwide #1 North America #1 North America
golf cars air compressors, lock and door
air tools hardware
19 General Overview

20. Drivers for Change –Tyler, TX.
•Tyler Plant produces residential air conditioning
systems
•Business landscape:
– Expiration of five year fixed price electrical contract
– Rising energy cost +70% on $4M spend
– Dramatic downturn in housing market
Ingersoll Rand acquires Trane –June, 2008
– Corporate goal of 15% normalized reduction in
manufacturing energy use by 2013
20 General Overview

21. Facilities & Infrastructure
• Campus style facility; Total 1.1 million square feet, 700KSF
manufacturing / test, balance Engineering, offices & warehouse
•
• 100PSI & 400PSI Compressor Dry Air (CDA) Systems; 5,000 SCFM
total demand @ -40F DP
• Four 900 Ton Trane Centrifugal Chillers running in series /
parallel, operating at 380F Comfort cooling in manufacturing area
• 2400 Ton Process Cooling Tower Water System
• 1-600 HP & 1-35 HP gas fired boiler
•
• Mix of HID lighting, T12, T8 & T5 fluorescents
21 General Overview

22. Simple Approach
•Policy & Deployment •Energy Efficiency Projects
•Management / Factory awareness •Equipment / systems efficiency
•Electrical sub-metering •Production methods
•Ownership of results and empowerment •Waste minimization, leaks and losses
•Metrics, Monitoring and Reporting •Focused investment
•Energy Conservation Measures •Pricing Strategies
•Behavior changes •Supply / rate management
•Off / on controls nights / weekends •Demand management
•Basic operations and maintenance •Off-peak load shifting
•“Low hanging fruit” projects
22 General Overview

23. 2007 Tyler Electrical Usage by Area
Sub-Meters Help!
100.0%
80.0%
60.0% ↑30% of Total Electrical
40.0%
20.0%
0.0%
23 General Overview

24. Results
System Issue Solution Invested Comp Savings
CDA 6,000 CFM CDA, 1960’ vintage,
s 4X300HP rotary screw $1,000,00 12/08 $400,000
two desiccant dryers, 8% of CDA Air Compressors, 0 (Efficiency)
vented to atmosphere, restriction in Dryers, 6”header
header
Boiler 600 HP boiler @ <70% efficiency; New 400 HP @ 90% $312,000 12/08 $150,000
Process change, capacity 2X efficiency (Efficiency)
demand
Lighting Mix of HID & T-12 fluorescent, Continue phased Ongoing $125,000
continue phasing lighting retrofits ($300 cum)
O&M 24X7X365 chiller operation @ 380F 43F on-shift; +/-48F off- O&M cost 9/08 $180,000
Process shift Neutral (Conservation
Temperature specifications ignored & Efficiency)
space temp specs
Coil cleaning, CDA leaks repair,
Loss of chiller plant & control focus O&M supervisor on-site
focused on HVAC
Weekend 24X7 for years; Currently 5-6 day / Turn off non-critical <$20,000 4/08 $150,000
Consv. week, with maintenance on back equipment, Night / (Conservation
shift Weekend setback )
Remote Onsite O&M people, 24X7X365 National Service Analysis <$10,000 9/08 $125,000
Monitoring & Monitoring; Reduced (Labor &
stand-by O&M Staff Conservation)
24 General Overview

25. Project Summary
•Multiple Benefits are being achieved:
– Improved O & M practices
– Use of remote monitoring and engineering support to
reduce cost and “
hold the gains”
– Delivering better than expected raw cost avoidance
($480,000 in calendar year 2008)
•Total Projected Costs: $1,342,000 + lighting retrofit
costs TBD
•Total Projected Annual Savings: $1.1 M
25 General Overview

26. We’ Uniquely Qualified
re
•More than half the buildings in the world rely Trane and
Ingersoll Rand and our products to deliver a high performance
building that support their goals.
•We have over 3,000 engineers throughout our enterprise,
including 520 LEED certified engineers
•We share knowledge and experience across businesses so our
customers can benefit from combined knowledge
•Critical Factors:
– Savings potential
– Practicality
– Commercial Viability
– Risk Management
– Business Differentiation
26 General Overview

27. Hussmann provides innovative green solutions
for retail food industry
27 General Overview

28. Sustainable Practices Bring Recognition
• USEPA Best of the Best Stratospheric Ozone Protection Award
• DJSI North American Index
• KLD Indexes
28 General Overview

29. Sustainable
Development
at BASF
2009 Green Ventures
Conference at FDU's
College at Florham,
Madison, NJ
May 20, 2009
E Madzy
Director, Product Stewardship / Regulatory

30. BASF –The Chemical Company
n The world’ leading
s
chemical company
n Our portfolio ranges
from chemicals, plastics,
performance products,
agricultural products and
fine chemicals to crude oil
and natural gas
n Sales 2008: €63.3 billion
n Employees as of December 31, 2007: 96,924
n R&D Expenses: €1.35 billion

31. Ensure
Sustainable Help our customers to
Development be more successful
The
Chemical
Company
Form the best team in Earn a premium on
industry our cost of capital

32. What Sustainability Means to BASF
l It means combining economic success with environmental protection and
social responsibility.
As an integral component of a decision-making process, Sustainable
Development:
l Drives innovations in chemistry that improve the quality of life;
l Presents market opportunities for eco-efficient products and practices that
result in long-term profitable performance and;
long- performance,
l Promotes the utilization of natural resources that meets the needs of the
present while ensuring that the needs of future generations are met.
u Economics are vital to the SD value proposition

33. Global Leadership

34. Global Toolbox for
Sustainable Development
BASF Sustainable Development
Strategic Performance Supplier Customer
Analysis Measures Relations Support
and Risk
Management
•Issue •EHS Audit •Audit: •Project Success :
Management
•Product Quality, EHS and Value addition via
•Eco-
Eco- Stewardship Social EHS and
efficiency Sustainability
•Social Services
analysis performance
assessment
•Sustainability
Screening

35. Eco-Efficiency : A Life-Cycle Approach
Production Basic
Chemicals Production
End-
Products
Raw Materials and
Energy Production
Recycling/Disposal Use Phase

36. Eco-Efficiency Portfolio:
Costs and Environmental Burden
0.0
Environmental Impact (normalized) high eco-efficiency Alternative A
Alternative B
Customer Alternative C
benefit :
The most eco-efficient product
1 has the lowest environmental
1.0
functional impact and cost. Eco-
unit for … . efficiency is measured from
the diagonal line.
low eco-efficiency
2.0
Alternative A is
2.0 1.0 0.0
most eco-efficient.
Costs (normalized)

37. Eco-Efficiency Analysis (EEA)
UV-Curable, Low-VOC Automotive Primer
n Eco-Efficiency Results
Presidential
Green Chemistry
Environmental impact (normalized)
Award Winner
0.0 2005
high eco-efficiency 1K UV-Cure
2K Urethane - Thermal
• Application of Epoxy- Thermal
primer to 1m2 of 2K Urethane - IR
a car body, for Epoxy- IR
lifetime use of 1.0 1K UV-Cure- Aerosol
200,000 miles
at 20mpg.
The UV- cured
coating in cans is
low eco-efficiency the most eco-
2.0 efficient.
2.0 1.0 0.0
Adjusted Costs(normalized)

38. RESULTS OF OUR EFFORTS

39. Contact information
Thanks for your attention
BASF Corporation
Edward Madzy
Phone: 973 245-6689
Fax: 973 245-6707
Email: edward.madzy@basf.com

40. The Business Case for
Going Green… NOW
Dave Stangis
Vice President, CSR &
Sustainability
May 20, 2009
Jumpstarting the New Green Economy

41. 41

42. • Approximately 20,000 employees in 20
countries
• 140 Year Heritage
• Products sold in ~120 countries
• ~ $8B in Sales
42

43. Focusing Efforts –Aligning with Values
CSR at Campbell - Driving global wellness and nutrition, helping to build
a sustainable environment, and honoring our role in society from the
farm to the family.
Consumers Environment Workplace Society
Deliver on the Lead the Sector An Extraordinary Nourishing our
Consumer Promise in Environmental Workplace where Neighbors
Stewardship Employees Drive Everywhere,
CSR Innovation Every Day
Wellness and Nutrition Develop 5yr plan to Engagement measures Resolute commitment
Food Safety and Quality reduce resource use embrace CSR to our communities
Strategic Partnerships Drive sustainability Model of Diversity and Partnering to address
Authentic Nourishment in agricultural systems Inclusion Wellness, Nutrition and
Helping the Consumer Reduce the footprint of Benchmark for CSR Hunger
be more Sustainable key products Integration Signature programs with
Social Impact
“
Together we will build the world’ most extraordinary food company
s
by nourishing people’ lives everywhere, every day.”43
s

44. Alternative Energy Initiatives
• $5,950,000 investment in a fuel cell
that provides approximately 65% of
the plant electricity.
• Annual savings $1,100,000
• CT clean air grant $3,500,000
• Project IRR 33.4%
The new 1,200 kW fuel cell was
switched on July 2008.
• Solar installation in Toronto
•Reduce plant's carbon dioxide
emissions by about 20,000
pounds
• Anaerobic digestion pilot with UC-Davis has already processed
> 200 tons of food waste from Campbell’ Sacramento Plant
s
44

45. Operational Sustainability
•Manufacturing
– Largest fuel cell installation in the US –Annual savings > $1MM
– Heat recovery and water recycling system redesign
•Savings - 3.5 million gallons/day water and $4 million/yr
•Packaging
– Right-sizing PF Gold Fish carton saves more than 100,000 pounds of
material and $900K.
– Eliminating the paper labels from frozen condensed soup eliminate
250,000lbs of material and save ~$550K in one plant alone
– Select Harvest labels - Saving 800 tons of lumber, 2MM gal of water
– Sustainability Packaging Guidelines
45

46. Sustainable Packaging Examples, cont.
Design w/ Create
Environmental $ Benefit Sustainable Economic
Partner
Externally
Mindset Value
39,000 pallets
$3,000,000
(800 + trucks)
Arnott’ Improved Pallet Utilization
s
60 million lbs paper $8,000,000
Pepperidge reusable Shippers
2 million lbs paper $1,000,000
Strategies Score Card
TT conversion form carton to Flexpack
46

47. Sustainability at Roche –
Preserving Innovation
Hugh Tole

48. A Global Perspective
About the Roche Group
• Founded in 1896 in Basel, Switzerland
• Employs about 80,000 people
• Operates in more than 65 countries
• 2008 sales ~ $ 42.34 billion
(45.6 billion CHF)
• Invests over $8 billion per year in R&D
• Completed purchase of remaining shares of Genentech in
March 2009

49. A Global Perspective
About the Roche Group
Our Mission
Our aim as a leading healthcare company is to
create, produce and market innovative solutions of
high quality for unmet medical needs. Our products
and services help to prevent, diagnose and treat
diseases, thus enhancing people’ health and
s
quality of life. We do this in a responsible and ethical
manner and with a commitment to sustainable
development respecting the needs of the individual,
the society and the environment.

50. The Business Case at Roche
Our Mission has led to a focus on long-term success rather
“
than short-term gain. As our products take between eight and
twelve years to bring to market, protecting the current and
future value of our company is critical. We believe this creates
a strong business case for sustainability.”

51. Implementing Energy Conservation
• Upper Management Support
– Corporate directive designed to “
ensure that all decision-making at
Roche supports efficient, appropriate and cost-effective energy use”
– Mandated standards (e.g. lighting, building temperatures)
– Life cycle cost considerations (NPV vs. simple payback)
• Public Commitments
– Reduce energy per employee by 10% (2005-2010)
– Reduce GHG emissions per sales by 10% (2003-2008)
– Commitments to USEPA Climate Leaders
• Project implementation and employee engagement

52. Cogeneration Repowering
Nutley, New Jersey
• 2 new turbine-gen sets (2004)
• Energy consumption reduced by one-
third
• Carbon emissions reduced by 10,000
metric tons/year vs. older cogen or
40,000 metric tons/year vs. no cogen
• Reduced operating costs ($3 to $4
million/year)
• Payback period –between 3-4 years

53. Employee Engagement
• Energy Efficient Lighting Fair
• State of NJ sponsored and
subsidized
• Increased awareness work/home

54. Roche Achieves First US EPA Climate Leaders Goal
Roche US Carbon Emissions (metric tons)
350,000
340,000
330,000
320,000
310,000
300,000
290,000
280,000
2001 2002 2003 2004 2005 2006 2007

55. Results
(US only - 2001-2007)
• Cost savings ($5.5 MM/year)
• Reduced environmental footprint (>40,000 metric tons/year)
• Other benefits
– Reputational > attraction/retention of high quality
employees
– Stock value (DJWSI, FTSE, Innovest Global 100 indices)

56. Sustainability Approach
“Roche is conscious of the dynamic interdependence of economic, social
and environmental interests and seeks to reconcile them in its daily
business activities.”
➙ Conclusion: an integrated network model
– Integrate Sustainability into all decisions and monitor with a Corporate
Sustainability Committee
– Roche identified as role model for Dow Jones SAM
SAM = Company for Sustainable Asset Management

57. Sustainability at Roche
Safety, Health & Genetics:
Environment: Position, SEAG = Science and
Reduce footprint Roche Charter, Ethics Advisory Group
reporting by site SEAG
Sponsoring and
Donations:
Access:
Patents and access Roche Focus on science,
response education, health/social,
policies
comm./environ. &
driven by culture
business
with support
from CSC
Corporate Ethics:
Governance: Behaviour in business,
Principles, transparency ethics initiative, Subject
shareholder dialogue understanding
Corporate Sustainability:
An integrated and innovative
way to create value for
stakeholders

58. We Innovate Healthcare