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3M Energy Management




Making Energy Efficiency
                                   A Competitive Advantage

 © 3M 2007. All Rights Reserved.
Energy Management

    Topics to be Discussed


         3M, Sustainability at 3M

         Energy Outlook

         ISO 50001 Management System
         Approach

         Resources to Assist



2
    © 3M 2007. All Rights Reserved.
Energy Management

    Six Market-Leading Businesses




3
    © 3M 2007. All Rights Reserved.
         2009.
Energy Management




    Leading Through
                Innovation
4
    © 3M 2007. All Rights Reserved.
Energy Management


    Enhancing
                          safety      and

security

5
    © 3M 2007. All Rights Reserved.
Energy Management




           Making
6
                    life
    © 3M 2007. All Rights Reserved.
                                      better   around the home
Energy Management




Improving the
           quality                    of

7
                         health care
    © 3M 2007. All Rights Reserved.
Energy Management




    Always
                                          value
                                              for business

8
                                 adding
    © 3M 2007. All Rights Reserved.
Our Values
     Act with uncompromising honesty and integrity in everything we do
     Satisfy our customers with innovative technology and superior
      quality, value and service
     Provide our investors an attractive return through sustainable,
      global growth
     Respect our social and physical environment around the world
     Value and develop our employees' diverse talents, initiative and
      leadership
     Earn the admiration of all those associated with 3M worldwide



9
    © 3M 2009. All Rights Reserved.
3M Environmental, Health and Safety

3M’s Sustainability Strategy




© 3M 2009. All Rights Reserved.
What is “Sustainability”?
                                              Environmental
                                               Protection
                        Economic
                        Success
                                        3


                                           Social
                                        Responsibility

              “Meeting the Needs of Society Today, While Respecting the
                 Ability of Future Generations to Meet Their Needs”
11
     © 3M 2009. All Rights Reserved.
3M Energy Management

      Net Sales (billions)
                                           Solid Top-Line Growth
              $ 30.0

                 25.0
                                                                           $25.3
                                                                   $24.5
                                                     $22.9
                 20.0                      $21.2
                                   $20.0

                 15.0

                 10.0

                    5.0

                    0.0
                                  2004     2005      2006          2007    2008


3M Confidential Information
© 3M 2009. All Rights Reserved.
     © 3M 2009. All Rights Reserved.
3M Energy Management

                                         3M Worldwide Energy Use
                                  Million Btu’s of Energy / Millions $ Sales




3M Confidential Information
© 3M 2009. All Rights Reserved.
3M Energy Management

                                  3M U.S. Energy Use
                                  Million Btu’s of Energy




3M Confidential Information
© 3M 2009. All Rights Reserved.
3M Energy Management

      3M Energy Management Program

       Energy use and costs tracked at over 200 locations world-
        wide
       Energy teams at each of 56 larger locations
       Each measured on Efficiency, Team, and Projects
       Management supports teams through annual plans
       Corporate Energy Management provides resources including
        quarterly progress reports
                    Guidelines for energy teams      Access to experts
                                                      Assessments
                    Best Practice sharing
                                                      Awards and Recognition
                    Monthly web conferences



3M Confidential Information
© 3M 2009. All Rights Reserved.
3M Energy Management

      ENERGY STAR®: Guidelines for
      Energy Management


              Management System
              for Energy
         3M is using this
          approach
          recommended by
          ENERGY STAR




3M Confidential Information
© 3M 2009. All Rights Reserved.
Energy Powers The Economic Engine And Provides The
  Standard Of Living That We Have Come To Expect
United States Energy Production as a Percent of
                 Consumption
United States Primary Energy Consumption by Source and
                       Sector, 2008
Henry Hub Natural Gas Spot Prices Remain Highly
 Uncertain
                                           Henry Hub spot
                                           STEO Henry Hub forecast
                                           NYMEX futures prices
                                           68% NYMEX confidence interval
                                           95% NYMEX confidence interval
Dollars per million Btu
 16                                                                           Forecast
 14
 12
 10
   8
   6
   4
   2
   0
   2005             2006            2007          2008        2009         2010          2011
       Source: STEO October 2009.
Access to Proven Oil Reserves
ISO 50001 – Energy Management Systems

   To enable organizations to establish the systems
    and processes necessary to improve energy
    performance, including energy efficiency and
    intensity
   The standard should lead to reductions in cost,
    greenhouse gas emissions and other environmental
    impacts through systematic management of energy
   Does not state performance criteria
ISO 50001 – Energy Management Systems

   Key Components:
        Energy Policy
        Objectives
        Targets,
        Action Plans
   Certification and Registration, or Self-declaration
   Committee Draft stage
        Draft International Standard, Final Draft International
         Standard, Vote
3M Energy Management

      ENERGY STAR®: Guidelines for
      Energy Management


              Management System
              for Energy
         3M is using this
          approach
          recommended by
          ENERGY STAR




3M Confidential Information
© 3M 2009. All Rights Reserved.
ISO 90001 – Quality Management Systems
Published in 1987




               Source: The ISO Survey of Certifications 2007
ISO 14001 – Environmental Management Systems
Published in 2004




               Source: The ISO Survey of Certifications 2007
How to Get Involved
• Become a pledge driver
   – Join as an umbrella pledge driver, then drive pledges among
     employees and others
       • Online sign-up process is simple and easy
       • Option to set a greenhouse gas prevention goal
       • Pledge drivers receive a tracking page on energystar.gov and
         access to free tools and resource to help promote the pledge
• Support company goals
   – Marketing
   – Social and environmental responsibility
• Measure (via pledges and participation) and gain
  recognition for the difference your company can make
• Rally employees/others around your commitments and
  accomplishments
Resources
Available

 Teaming Up To
 Save Energy is
 a “how to” guide
 on building an
 energy
 management
 program
Energy Management

     The Future




      Energy price volatility
      Increased connectivity to environment
      Customers interested in Sustainability
      Energy conservation is the right thing to do
33
     © 3M 2007. All Rights Reserved.

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Maximize Minnesota 3M Presentation October 2009

  • 1. 3M Energy Management Making Energy Efficiency A Competitive Advantage © 3M 2007. All Rights Reserved.
  • 2. Energy Management Topics to be Discussed 3M, Sustainability at 3M Energy Outlook ISO 50001 Management System Approach Resources to Assist 2 © 3M 2007. All Rights Reserved.
  • 3. Energy Management Six Market-Leading Businesses 3 © 3M 2007. All Rights Reserved. 2009.
  • 4. Energy Management Leading Through Innovation 4 © 3M 2007. All Rights Reserved.
  • 5. Energy Management Enhancing safety and security 5 © 3M 2007. All Rights Reserved.
  • 6. Energy Management Making 6 life © 3M 2007. All Rights Reserved. better around the home
  • 7. Energy Management Improving the quality of 7 health care © 3M 2007. All Rights Reserved.
  • 8. Energy Management Always value for business 8 adding © 3M 2007. All Rights Reserved.
  • 9. Our Values  Act with uncompromising honesty and integrity in everything we do  Satisfy our customers with innovative technology and superior quality, value and service  Provide our investors an attractive return through sustainable, global growth  Respect our social and physical environment around the world  Value and develop our employees' diverse talents, initiative and leadership  Earn the admiration of all those associated with 3M worldwide 9 © 3M 2009. All Rights Reserved.
  • 10. 3M Environmental, Health and Safety 3M’s Sustainability Strategy © 3M 2009. All Rights Reserved.
  • 11. What is “Sustainability”? Environmental Protection Economic Success 3 Social Responsibility “Meeting the Needs of Society Today, While Respecting the Ability of Future Generations to Meet Their Needs” 11 © 3M 2009. All Rights Reserved.
  • 12. 3M Energy Management Net Sales (billions) Solid Top-Line Growth $ 30.0 25.0 $25.3 $24.5 $22.9 20.0 $21.2 $20.0 15.0 10.0 5.0 0.0 2004 2005 2006 2007 2008 3M Confidential Information © 3M 2009. All Rights Reserved. © 3M 2009. All Rights Reserved.
  • 13. 3M Energy Management 3M Worldwide Energy Use Million Btu’s of Energy / Millions $ Sales 3M Confidential Information © 3M 2009. All Rights Reserved.
  • 14. 3M Energy Management 3M U.S. Energy Use Million Btu’s of Energy 3M Confidential Information © 3M 2009. All Rights Reserved.
  • 15.
  • 16. 3M Energy Management 3M Energy Management Program  Energy use and costs tracked at over 200 locations world- wide  Energy teams at each of 56 larger locations  Each measured on Efficiency, Team, and Projects  Management supports teams through annual plans  Corporate Energy Management provides resources including quarterly progress reports  Guidelines for energy teams  Access to experts  Assessments  Best Practice sharing  Awards and Recognition  Monthly web conferences 3M Confidential Information © 3M 2009. All Rights Reserved.
  • 17. 3M Energy Management ENERGY STAR®: Guidelines for Energy Management Management System for Energy  3M is using this approach recommended by ENERGY STAR 3M Confidential Information © 3M 2009. All Rights Reserved.
  • 18. Energy Powers The Economic Engine And Provides The Standard Of Living That We Have Come To Expect
  • 19. United States Energy Production as a Percent of Consumption
  • 20. United States Primary Energy Consumption by Source and Sector, 2008
  • 21. Henry Hub Natural Gas Spot Prices Remain Highly Uncertain Henry Hub spot STEO Henry Hub forecast NYMEX futures prices 68% NYMEX confidence interval 95% NYMEX confidence interval Dollars per million Btu 16 Forecast 14 12 10 8 6 4 2 0 2005 2006 2007 2008 2009 2010 2011 Source: STEO October 2009.
  • 22. Access to Proven Oil Reserves
  • 23. ISO 50001 – Energy Management Systems  To enable organizations to establish the systems and processes necessary to improve energy performance, including energy efficiency and intensity  The standard should lead to reductions in cost, greenhouse gas emissions and other environmental impacts through systematic management of energy  Does not state performance criteria
  • 24. ISO 50001 – Energy Management Systems  Key Components:  Energy Policy  Objectives  Targets,  Action Plans  Certification and Registration, or Self-declaration  Committee Draft stage  Draft International Standard, Final Draft International Standard, Vote
  • 25. 3M Energy Management ENERGY STAR®: Guidelines for Energy Management Management System for Energy  3M is using this approach recommended by ENERGY STAR 3M Confidential Information © 3M 2009. All Rights Reserved.
  • 26. ISO 90001 – Quality Management Systems Published in 1987 Source: The ISO Survey of Certifications 2007
  • 27. ISO 14001 – Environmental Management Systems Published in 2004 Source: The ISO Survey of Certifications 2007
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  • 31. How to Get Involved • Become a pledge driver – Join as an umbrella pledge driver, then drive pledges among employees and others • Online sign-up process is simple and easy • Option to set a greenhouse gas prevention goal • Pledge drivers receive a tracking page on energystar.gov and access to free tools and resource to help promote the pledge • Support company goals – Marketing – Social and environmental responsibility • Measure (via pledges and participation) and gain recognition for the difference your company can make • Rally employees/others around your commitments and accomplishments
  • 32. Resources Available Teaming Up To Save Energy is a “how to” guide on building an energy management program
  • 33. Energy Management The Future  Energy price volatility  Increased connectivity to environment  Customers interested in Sustainability  Energy conservation is the right thing to do 33 © 3M 2007. All Rights Reserved.