Going Green: Learning as We Go by Beth Springer

1. Going Green
Learning as We Go
Opportunity Green
Los Angeles, CA
November 8, 2009
Beth Springer
Executive Vice President
The Clorox Company

2. Clorox Then:
1913 Founded as an industrial bleach company
1928 Went public
1957 Acquired by Procter & Gamble
1969 Independent again, still making only liquid bleach
Portfolio expanded through innovation,
brand building and acquisition
November 8, 2009 Clorox Presentation at Opportunity Green Conference 2

3. Clorox Now:
Sales of $5.3 Billion
8300 employees
80% of business in USA
More than two dozen plants in the USA
Manufacture products in 25 countries
SIX R&D facilities
Traded on NYSE
November 8, 2009 Clorox Presentation at Opportunity Green Conference 3

4. Leading Consumer Brands
November 8, 2009 Clorox Presentation at Opportunity Green Conference 4

5. We’ve made a lot of sustainability progress in the last
several years, but are still fairly early in our journey
Green is a driving force Extreme
behind the company Green
Clorox goal
Shaded
Leverage green for growth
Green
Clorox’s
Sustainability
Focus is to reduce costs Journey
Lean
and increase efficiencies
Green
Clorox 2007
Defensive
Key motivation is risk avoidance
Green
* From Fall 2004 Sloan Business Review
November 8, 2009 Clorox Presentation at Opportunity Green Conference 5

6. The journey is long, but we have made some good progress
in the last five years
Environmental sustainability is:
• Embedded in the company’s strategy and performance scorecard
• Articulated via a corporate-wide Eco Strategy and managed by a dedicated Eco office
• Driven into the goals and plans of our individual business units
Accomplishments to date include:
• Setting a public GHG goal as a member of Climate Leaders
• Making progress in reducing operational and product footprints
• Building two natural, plant-based brands
With continued opportunity to:
• Further embed eco criteria into our business processes and management incentive systems
• Set additional public goals and issue a formal Sustainability Report
• Further reduce our operational and product eco footprints
November 8, 2009 Clorox Presentation at Opportunity Green Conference 6

7. Going Green: Learning as We Go
Our initial focus was on:
Reducing our operational footprint
November 8, 2009 Clorox Presentation at Opportunity Green Conference 7

8. Reducing our operational footprint
Manufacturing opportunities
Lighting Retrofits Water Recycling
Waste Reduction
November 8, 2009 Clorox Presentation at Opportunity Green Conference 8

9. Reducing our operational footprint
Distribution opportunities
Truck to Rail Network Improvements
Using other more efficient carriers
November 8, 2009 Clorox Presentation at Opportunity Green Conference 9

10. Reducing our operational footprint
Workplace opportunities
Reduced Business Travel
Reduced Paper Use By 20% Created an Eco Network
by 30%
Converted to more
fuel efficient fleet Making facilities more efficient
November 8, 2009 Clorox Presentation at Opportunity Green Conference 10

11. Going Green: Learning as We Go
Our initial focus was on: But we also learned that:
Reducing our operational footprint We needed to make our product portfolio
more sustainable
November 8, 2009 Clorox Presentation at Opportunity Green Conference 11

12. Making the product portfolio more sustainable
Our largest footprint is in the over one billion products
we sell into the marketplace each year
40 Plants
TO OVER 1
Billion
Products!
November 8, 2009 Clorox Presentation at Opportunity Green Conference 12

13. Making the product portfolio more sustainable
About 80% of that product footprint is actually outside
the walls of Clorox, but still needs to be managed
60%
% Total ECO Impact*
40%
45%
20%
20%
15%
10% 10%
0%
Raw Materials Manufacture Distribution (of Consumer Use End of Life
(Sourcing & (Product formulation finished product to
Production) and packaging) customer)
* Illustrative purposes
November 8, 2009 Clorox Presentation at Opportunity Green Conference 13

14. Making the product portfolio more sustainable
Additionally, the eco impact of each of our businesses
is different, and needs to be managed separately
ECO impact
Relative % of Sales
November 8, 2009 Clorox Presentation at Opportunity Green Conference 14

15. Making the product portfolio more sustainable
To better manage the individual businesses, we have created
and are implementing a new Eco Assessment process
Clorox’s ECO Assessment Process
Environmental
Sustainability Grounding
Product Life
Cycle Filter Raw Matls. Manufacture Distribution Consumer Use End of Life
Stakeholder Consumer NGO’s Customer Competition Government
Filter Investors Employees Media Community Groups
Business
Footprint
Impact Risk Mitigation Growth
Filter Reduction
Environmental
Sustainability Priorities
and Recommendations
November 8, 2009 Clorox Presentation at Opportunity Green Conference 15

16. Going Green: Learning as We Go
Our initial focus was on: But we also learned that:
Reducing our operational footprint We needed to make our product portfolio more
sustainable
Making existing products more sustainable
November 8, 2009 Clorox Presentation at Opportunity Green Conference 16

17. Greening up existing product lines
Cleaning products, trash bags and charcoal are
a few recent examples
Kingsford Natural
Concentrated Briquettes
Clorox 2
Glad Compostable
November 8, 2009 Clorox Presentation at Opportunity Green Conference 17

18. Greening up existing product lines
We’ve improved a third of our product portfolio in the last five years,
and our goal is to improve another 25% in the next four years
Percent of the Product Portfolio with Eco Improvements
60%
40%
20%
0%
2005-2009 2010-2013 Goal
November 8, 2009 Clorox Presentation at Opportunity Green Conference 18

19. Going Green: Learning as We Go
Our initial focus was on: But we also learned that:
Reducing our company’s operational footprint We needed to make our product portfolio more
sustainable
Making existing products more sustainable We needed to correct misinformation on
some products
November 8, 2009 Clorox Presentation at Opportunity Green Conference 19

20. Correcting misinformation
Clorox bleach is one example where some perceptions
are just not true
1. Salt
The truth
During waste treatment, remaining
bleach is degraded to salt. about bleach…
• There is no free chlorine in
Clorox Liquid Bleach
4. Municipal Treatment-
Salt-to-Salt 2. Bleach
• Sodium Hypochlorite bleach
Septic Tank Manufacture
Bleach Cycle is the most effective and
affordable disinfectant
available today
During product use, 95-98% of household
bleach breaks down into salt and water. • No other manmade product
hassaved more lives than
sodium hypochlorite bleach.
3. Product Use
November 8, 2009 Clorox Presentation at Opportunity Green Conference 20

21. Established a product ingredient communication program
We are also reducing misperceptions by being transparent
on ingredients
November 8, 2009 Clorox Presentation at Opportunity Green Conference 21

22. Going Green: Learning as We Go
Our initial focus was on: But we also learned that:
Reducing our company’s operational footprint We needed to make our product portfolio more
sustainable
Making existing products more sustainable We needed to correct misinformation on some
products
There is an opportunity to build new brands
made with plant-based ingredients
November 8, 2009 Clorox Presentation at Opportunity Green Conference 22

23. Opportunity to build new brands with plant-based ingredients
Burt’s Bees and Green Works are new lines of business
Acquired December 2007 Launched January 2008
November 8, 2009 Clorox Presentation at Opportunity Green Conference 23

24. Going Green: Learning as We Go
Our initial focus was on: But we also learned that:
Reducing our company’s operational footprint We needed to make our product portfolio more
sustainable
Making existing products more sustainable We needed to correct misinformation on some
products
There is an opportunity to build new brands
made with plant-based ingredients
Products have to meet a genuine consumer
need and be priced in a way that creates
value for manufacturers, retailers and
consumers
November 8, 2009 Clorox Presentation at Opportunity Green Conference 24

25. Opportunity to build new brands with plant-based ingredients
Our bet on natural products is based on an insight that consumers are
motivated by concerns about My environment versus The environment
Consumer Definition of
“My” Environment vs. “The” Environment
The Environment
My Environment
Work
Family/
Home World
Parks
Car Community
Body
Yard Local Natural
Environment
Within My Control — Outside of My Control —
“Immediate” “Long-Term”
In me, On me, Around me
November 8, 2009 Clorox Presentation at Opportunity Green Conference 25

26. Products must met genuine needs and be priced right
Kingsford Surefire reduced our environmental footprint while
also offering the consumer a better product at the same price
Upgraded raw
materials and
optimized formula
Improved
process and
quality
New briquette
shape for more
grilling power
November 8, 2009 Clorox Presentation at Opportunity Green Conference 26

27. Products must met genuine needs and be priced right
The initial line of Green Works products provided a more natural
alterative to conventional cleaners at only a modest price premium
+11% +25% +6% +14% +4% +18%
November 8, 2009 Clorox Presentation at Opportunity Green Conference 27

28. Products must met genuine needs and be priced right
Despite the clear eco benefits of concentrating household cleaners,
the usage experience barriers remain too high to change behavior
Concentrates reduce
Product & Packaging Costs
product & package costs
And can result in
Distribution Costs
significant distribution savings
Retail Price Which result in a lower price per use
Per Use for the consumer
Consumer
Product
Value Usage
But to date, the price and
environmental benefits are not enough
Performance Experience
to overcome the diluting hassles
November 8, 2009 Clorox Presentation at Opportunity Green Conference 28

29. Going Green: Learning as We Go
Our initial focus was on: But we also learned that:
Reducing our company’s operational footprint We needed to make our product portfolio more
sustainable
Making existing products more sustainable We needed to correct misinformation on some
products
There is an opportunity to build new brands
made with plant-based ingredients
Products have to meet a genuine consumer
need and be priced in a way that creates value
for manufacturers, retailers and consumers
Being guided by strategy and steady
principles
November 8, 2009 Clorox Presentation at Opportunity Green Conference 29

30. Steady Principle
Our work is always guided by our values and our strategies
Clorox Core Values
• Stretch for Results
• Do the Right Thing
• Take Personal Ownership Clorox Mission
• Work Together to Win
Making Everyday Life Better,
Everyday Clorox Corporate
Strategy
Maximize Economic Profit
across categories, customers
Clorox Eco Strategy
and countries.
Make Environmental Sustainability
core to how we do business to:
• Enable Clorox’s EP growth
• Enhance corporate reputation
• Build employee pride
November 8, 2009 Clorox Presentation at Opportunity Green Conference 30

31. Going Green: Learning as We Go
Our initial focus was on: But we also learned that:
Reducing our company’s operational footprint We needed to make our product portfolio more
sustainable
Making existing products more sustainable We needed to correct misinformation on some
products
There is an opportunity to build new brands
made with plant-based ingredients
Products have to meet a genuine consumer
need and be priced in a way that creates value
for manufacturers, retailers and consumers
Being guided by strategy and steady principles We have to learn and adapt as we go
November 8, 2009 Clorox Presentation at Opportunity Green Conference 31

32. Learning and Adapting
We are continually learning from people and groups
outside company walls
NGOs Universities
Media
Industry Associations
Blogs
Consumer Comments
Peer Companies
Advisory Boards
Retail Customers
Suppliers
November 8, 2009 Clorox Presentation at Opportunity Green Conference 32

33. Work on Green Works and Brita are two clear examples
where outside parties have helped us improve
Green Work and Sierra Club joined Brita – better taste, and helps reduce
together to help bring natural bottled water waste
cleaning to the mainstream
But we needed to find a way to
Vetting process led to a new level of recycle our used filters
engagement
Opened our doors to Sierra Club on
Current waste treatment facilities in
product and company information
the U.S. not equipped to recycle used
• Product ingredients
filters
• Bleach
• Environmental and workplace
safety record After much research, Brita partnered
with Preserve, maker of 100 percent
Dialogue between Sierra Club and
Clorox reinforced importance and recycled household consumer goods
benefits of transparency
November 8, 2009 Clorox Presentation at Opportunity Green Conference 33

34. Lots yet to learn. Among the questions we continue
to wrestle with . . .
Have not always been able to justify major Still working to establish an eco mindset
capital investments for big eco gains throughout Clorox so that Eco Office is
not the main generator of eco ideas
Still trying to crack the consumer code for
major footprint reduction of our cleaners
Still exploring heat recapture technology for
electricity generation at our Kingsford plants
November 8, 2009 Clorox Presentation at Opportunity Green Conference 34

35. Going Green: Learning as We Go
Our initial focus was on: But we also learned that:
Reducing our company’s operational footprint We needed to make our product portfolio more
sustainable
Making existing products more sustainable We needed to correct misinformation on some
products
There is an opportunity to build new brands
made with plant-based ingredients
Products have to meet a genuine consumer
need and be priced in a way that creates value
for manufacturers, retailers and consumers
Being guided by steady principles We have to learn and adapt as we go
November 8, 2009 Clorox Presentation at Opportunity Green Conference 35