2. S U S TA I N A B I L I T Y
EVERYWHERE IT MATTERS
Helping to keep people safe and healthy is a critical part of preserving
quality of life on our planet — and at Ecolab, it’s what we do. We are the
global leader in cleaning, food safety and health protection, and we take
our responsibility seriously. We know that future generations depend
on our ability to find innovative solutions to the changing needs of an
evolving world. In 2009, we worked closely with customers, industry,
environmental associations and more to help advance our vision to
make the world a cleaner, safer, healthier place. We focused on doing
what matters — everywhere it matters.
3. Ecolab is the world’s leading provider of cleaning, food
safety and health protection products and services.
About Ecolab
Ecolab reaches customers in more than 160 countries, employing 26,000 associates
worldwide. Customers include hotels and restaurants; foodservice, healthcare and
educational facilities; quick service (fast food) units; commercial laundries; light industry;
dairy plants and farms; and food and beverage processors.
Business Mix 2009 | Percent of Total Sales
Textile Care 1%
Vehicle Care 1
%
GCS Service 2 % 3% Canada
Healthcare 4% 4% Latin America
Kay 5%
9% Asia Pacific
Pest Elimination 6%
Europe
31%
Middle East
Food & Beverage 9 % Africa
Institutional 25%
United States International
Table of Contents
A Message from Ecolab
Chairman, President and CEO . . . . . . . . . . . 2 Our Operations . . . . . . . . . . . . . . . . . . . . . . . 17
Financial Highlights . . . . . . . . . . . . . . . . . . . . 3 Our Associates . . . . . . . . . . . . . . . . . . . . . . . 25
Ecolab Global Locations . . . . . . . . . . . . . . . . 4 Our Communities . . . . . . . . . . . . . . . . . . . . . 31
Global Sustainability Principles . . . . . . . . . . 6 2010 Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
2009 Highlights . . . . . . . . . . . . . . . . . . . . . . . 8 GRI Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Our Programs . . . . . . . . . . . . . . . . . . . . . . . . . 11
Sustainability Report 1
4. A Message from Ecolab
Chairman, President and CEO
This marks our sixth year of reporting on Many of our Lean Six Sigma projects Today’s economic conditions pose
Ecolab’s sustainability efforts and progress. focused on improving sustainability, challenges, but they also create
Sustainability is core to Ecolab’s vision to including discovering better ways to opportunities. Finding ways to run our
help create a cleaner, safer, healthier world, manage water use in manufacturing business more efficiently — and helping our
and has been a cornerstone of how we do processes, reducing the impact of the raw customers do the same — has helped us
business since our company’s founding. materials used in our products, and using reduce costs and significantly reduce the
Information Technology to reduce impact to the environment. Going forward,
In 2009, we made great progress toward
energy usage. we will continue to look for ways to improve
our goals around economic progress,
our own practices and, as always, we will
environmental stewardship and social We also continued to set goals for
focus on delivering innovative, sustainable
responsibility. We established a formal, ourselves: In this report, we are pledging
solutions that help customers optimize their
global and cross-functional team to more to reduce our global water consumption,
operations.
systematically drive sustainability initiatives disposed waste and effluent water by
throughout the company — in fleet, facilities, 18 percent per metric tonne of shipped
product development, customer support, product by the end of 2015.
procurement, regulatory, government As a global leader, Ecolab is
Most importantly, in 2009 we continued to
affairs and industry relations.
develop products and programs that help
perfectly positioned to make a
our customers reduce the impact of their difference in the world.
businesses on the environment. Our sales
and service teams helped our customers
identify opportunities to conserve
The steps we’re taking to meet today’s
resources and cut costs. Through on-site
challenges will help us — and all of our
consultation and training — and backed with
stakeholders — prosper and prepare for a
effective products, controlled dispensing
promising future. As a global leader, Ecolab
and monitoring technology — those
is perfectly positioned to make a difference
opportunities were transformed
in the world. We embrace this opportunity
into measurable environmental and
and responsibility and know that the
economic savings.
difference we can make in helping the world
All of our accomplishments in 2009 were be a cleaner, safer and healthier place
made possible through our most valuable matters more now than ever.
asset: our employees. We employed 26,000
associates around the world, and were
recognized by several organizations as
a great place to work. With the help of
Douglas M. Baker, Jr.
our associates, we continued to support
Chairman of the Board,
the communities where we live and work
President and Chief Executive Officer
through volunteering and charitable
giving — which totaled $7.8 million in 2009.
2 Sustainability Report
5. Financial Highlights PERCENTAGE CHANGE
Millions, Except Per Share
2009 2008 2007 2009 2008
Net Sales $5,900.6 $6,137.5 $5,469.6 (4) % 12 %
Net Income Attributable to Ecolab 417.3 448.1 427.2 (7) 5
Percent of Sales 7.1 % 7.3 % 7.8 %
Diluted Net Income Attributable to Ecolab per Common Share 1.74 1.80 1.70 (3) 6
Diluted Weighted-Average Common Shares Outstanding 239.9 249.3 251.8 (4) (1)
Cash Dividends Declared per Common Share 0.5750 0.5300 0.4750 8 12
Cash Provided by Operating Activities 695.0 753.2 797.6 (8) (6)
Capital Expenditures 252.5 326.7 306.5 (23) 7
Ecolab Shareholders’ Equity 2,000.9 1,571.6 1,935.7 27 (19)
Return on Beginning Equity 26.6 % 23.1 % 25.4 %
Total Debt 967.3 1,138.2 1,003.4 (15) 13
Total Debt to Capitalization 32.5 % 41.9 % 34.1 %
Total Assets $5,020.9 $4,756.9 $4,722.8 6% 1%
Ecolab Stock Performance Comparison
Net Sales $
55 1.6
Millions 1.5
50
$
$4,535 $4,896 $5,470 $6,138 $5,901 1.4
ECOLAB S&P 500 INDICES
2005 2006 2007 2008 2009
ECOLAB STOCK PRICE
45
$
1.3
1.2
40
$
1.1
$
35 1.0
0.9
$
30
0.8
$
25 0.7
4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2006 2007 2008 2009
Ecolab Stock Price Ecolab Stock Price Index S&P 500 Index
Dividends Paid R&D Investments
Millions Millions
$90 $101 $114 $129 $133 $68 $73 $83 $86 $86
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
Sustainability Report 3
6. Ecolab Global
Locations
With manufacturing and
distribution facilities around
the globe, the distance our
products travel is below the
median for our industry,
reducing fuel use and related
carbon emissions. We are also
able to provide jobs in each of
these communities.
Fort Worth, Texas ASIA PACIFIC
Garland, Texas Melbourne, Australia
NORTH AMERICA Tyler, Texas Perth, Australia
City of Industry, Calif. Martinsburg, W.Va. Revesby, Australia
San Jose, Calif. Mississauga, Canada Guangzhou, China
Jacksonville, Fla. San José, Costa Rica Shanghai, China
McDonough, Ga. Mexico City, Mexico Cikarang, Indonesia
Elk Grove Village, Ill. Acuña, Mexico Noda, Japan
Joliet, Ill. Shika, Japan
South Beloit, Ill. LATIN AMERICA Hamilton, New Zealand
Huntington, Ind. Pilar, Argentina Manila, Philippines
Eagan, Minn. São Paulo, Brazil Singapore, Singapore
St. Louis, Mo. Santiago, Chile Seoul, South Korea
Columbus, Miss. Bogotá, Colombia Bangkok, Thailand
Greensboro, N.C. La Romana,
Carrollton, Texas Dominican Republic
4 Sustainability Report
7. EUROPE
Tessenderlo, Belgium
Chalons, France AFRICA
Siegsdorf, Germany Johannesburg, South Africa
Mandras, Greece Dar es Salaam, Tanzania
Mullingar, Ireland
Rozzano, Italy
Mosta, Malta
Nieuwegein, Netherlands
Varsseveld, Netherlands
Zutphen, Netherlands
Racibor, Poland
Maribor, Slovenia
Baglan, United Kingdom
Cheadle (Hulme), United Kingdom
Leeds, United Kingdom
Sustainability Report 5
8. At Ecolab, making the world a cleaner, safer, healthier place is our
Global
business. We are committed to providing our customers with the
Sustainability most effective and efficient cleaning, food safety and infection
Principles control programs available.
Economic Progress Environmental Stewardship
Ecolab is the world’s leading provider of Through continuous improvement and
cleaning, food safety and health protection sustainable innovation, Ecolab creates
products and services. Our ongoing solutions that maximize product and
commitment to exceeding our customers’ environmental performance. We make
cleaning and sanitation needs has helped sound decisions based on good science,
Ecolab achieve sustainable, profitable and are committed to reducing our carbon
growth in the past and continues to guide footprint and overall impact on the
us into the future. environment.
Economic Principles Environmental Principles
y We provide innovative and effective y We actively develop products and
solutions that help our customers services that minimize our customers’
prosper and grow. water and energy use, with innovative
Sustainability is inherent in our products packaging and dispensing methods that
and services. From concentrated, solid y We invest in research and development
reduce waste.
formulations to innovative packaging and to create the best solutions at the best
dispensing methods, our products are value. y We make every effort to use
designed to help increase safety, lower environmentally responsible and
y We deliver effective results at the
the use of water and energy, and reduce sustainable resources to meet our needs,
lowest total impact environmentally and
the chemicals and waste released to the and conserve nonrenewable natural
economically.
environment. Strengthened by the expertise resources through efficient use and
of our associates and combined with our y We serve customers around the world careful planning.
dedication to social responsibility, these with consistent global solutions.
y We recognize and support the human
offerings provide value to our customers right to water. As such, we help protect
y We invest in our people, equipping them
and the global economy — and help foster local water supplies through conservation
with the tools, technology and training
a more sustainable world. in our own operations, as well as through
they need to do their jobs while providing
opportunities for personal growth and developing technologies that help our
development. customers use less water, and where
possible, recondition and reuse water.
y We contribute financial investments that
increase the long-term vitality of our y We use environmentally responsible and
communities. sustainable energy sources, and invest
in improving energy efficiency in our
y We provide our shareholders with operations on an ongoing basis.
superior value.
6 Sustainability Report
9. E M P L OY I N G
26,000 ASSOCIATES
We are dedicated to the communities
in which we live and work, and we support
them through charitable giving
and community involvement.
y We minimize emissions, effluents and Social Responsibility y We provide our customers with products
waste caused by our operations, and and services that help protect the
dispose of all wastes through safe and Ecolab is a respected leader that takes health and safety of their customers
responsible methods. our responsibility to the communities we and employees, and enhance safety
serve seriously. We promote the well-being by offering comprehensive product
y We review the environmental attributes of our associates, our customers and our information, training and emergency
of raw materials and make environmental customers’ customers by contributing support.
sustainability a key requirement in the to programs and initiatives that enhance
selection of ingredients for new products quality of life in the communities in which y We are dedicated to the communities in
and services. we work and live. which we live and work, and we support
them through charitable giving and
y We monitor the environmental, health Social Principles community involvement.
and safety compliance standards of our
y We respect the human rights of
manufacturing facilities and participate y We conduct business fairly and ethically.
all people.
in third-party audits to continuously Our Code of Conduct defines our
improve our performance. We promptly y We are committed to supporting and corporate culture — our associates
respond to situations where our encouraging diversity throughout our worldwide are held to the highest level
operations have had an adverse effect organization. of integrity.
on people or the environment.
y We provide a safe work environment for
our associates through comprehensive
safety policies, programs and training.
y We support small, disadvantaged and
women-owned businesses by actively
seeking such suppliers in our competitive
bidding processes, and are committed
to fostering relationships with diverse
suppliers throughout the world.
y We hold our suppliers to the same high
standards of social responsibility that
we follow. Our suppliers must protect
the health, safety and human rights of
their associates and be committed to
continuous improvement.
Sustainability Report 7
10. 2009
Highlights
Hotel & Lodging Association, the Society When McDonald’s
Our global reach, paired with
for Foodservice Management and others to restaurants in Europe
our ability to respond quickly help educate their members and industries. asked us for support
With the National Restaurant Association, in planning for an
at a local level, enabled
we offered webinars and created an H1N1 H1N1 outbreak,
us to provide unparalleled toolkit to help the restaurant industry fight we immediately provided advice on
H1N1 flu and prevent the spread of the virus preparedness procedures customized to
service at a time when our
in restaurants. their quick service restaurant environment.
customers were faced with the We adjusted our production and distribution
uncertainty of an emerging capabilities for hand sanitizer and hand
soap to meet their increased demand.
pandemic. We responded quickly and nimbly to each
For Club Med — a leader in vacation resorts
response — remaining flexible to provide
with 80 villages on five continents — we
Health Protection service and product tailored to each of
mobilized quickly to provide a pandemic
their requests, which varied by country.
H1N1 and Pandemic Preparedness preparedness plan tailored specifically
McDonald’s supply chain in France and the
to their needs, established new H1N1
At a time of global uncertainty, our work UK recognized Ecolab’s ability to rapidly
cleaning protocols and provided hygiene
in the area of health protection took on provide practical solutions in substantial
supplies. Our team assessed their need
particular importance in 2009, with the volumes as the mark of a flexible and
for disinfectants to ensure products were
onset in March of what would eventually be reactive supplier — a response indicative of
available at all times in all locations, which
labeled the H1N1 Pandemic Flu. To protect our long-term partnership approach.
included taking into consideration the
and prevent our customers, partners and
regulations of 40 different countries. We Improving Patient Safety
associates worldwide from falling ill with
created an employee training plan and
the flu, we immediately began work with In September, we announced our
involved Ecolab associates in many different
our supply chain and on business continuity partnership with the Joint Commission’s
countries to deliver the training locally.
planning to ensure we would be able to new Center for Transforming Healthcare to
meet customer demand for hand sanitizers Club Med needed a partner who could work support a study to improve hand hygiene.
and surface disinfectants around the closely with their H1N1 steering committee The goal of the study is to eliminate hand
world. Additionally, to minimize risk, Ecolab as long as there was risk — which for the hygiene as a cause of healthcare-associated
dispensed equipment and training tools. first several months included daily phone infections (HAIs).
calls. The involvement of our associates in
From foodservice to hospitality to Ecolab shares the Joint Commission’s
numerous countries enabled us to provide
healthcare, Ecolab worked with customers vision and commitment to reduce HAIs
Club Med headquarters with continuously
worldwide to develop customized solutions and improve patient safety. Poor hand
updated information on the status of
addressing their specific business risks and hygiene and improperly cleaned patient
the pandemic and the organization’s
providing training tools to educate their rooms can elevate the risk of infection,
preparedness around the world.
employees about flu prevention. To facilitate so we have designed comprehensive
awareness and prevention, we were also infection prevention solutions, integrated
involved in a number of educational with training and support, to optimize
initiatives around the H1N1 pandemic. overall performance and drive continuous
We partnered with the American improvement.
8 Sustainability Report
11. ECOLAB RECEIVED
THE 2009 TEKNE
GREEN
COMPANY AWARD
GIVEN TO ECOLAB BY
THE MINNESOTA HIGH TECH ASSOCIATION
The award honors businesses
that practice environmental
awareness/responsibility and incorporate
sustainability into their overall business model.
Food Safety
Ecolab was named a 2009 recipient of
the IFT Food Expo Innovation Award for
the development of the first peroxyacetic
acid-based commercial sterilant system
registered with the U.S. Environmental
Protection Agency (EPA) for use against the
highly resistant pathogen, Bacillus cereus.
Presented to Ecolab by the Institute of
Food Technologists (IFT), the award is
designed to honor outstanding innovation
in products, ingredients, applications,
instruments, equipment, technology and
services. Ecolab’s patented program allows
for effective antimicrobial sterilization with
lower concentrations of peroxyacetic acid,
designed for use in aseptic packaging of
low-acid beverages in plastic packaging
materials.
Environmental Stewardship To achieve existing
On the Ecolab system, one judge wrote: building certification,
LEED® Certification we instituted a number
“In these days of ever-growing Our corporate research, development of changes to reduce
need to improve safety and and engineering facilities on the Allan L. the environmental
Schuman Campus in Eagan, Minn., were impact of the RD&E
absolutely ensure consumer
awarded LEED-EB Gold Certification by the center, including reducing the irrigation
protection, this technology U.S. Green Building Council (USGBC). needed for landscaping, improving the
should provide a very valuable recycling program, reducing natural gas
The Leadership in Energy and consumption, adding bicycle storage and
and important added safety.” Environmental Design (LEED®) Green providing preferred parking for alternative
Building Rating SystemTM is an established fuel vehicles, increasing the percentage of
certification system providing third- recycled content office supplies purchased,
party verification that a building was and working with the Department of Natural
designed, built and operated to reduce Resources to develop a forestry and wildlife
the environmental impact of the building stewardship plan for the campus.
throughout its functional life cycle.
Sustainability Report 9
12. Associations
Our partnerships and associations help us advance our vision and support our
principles aimed at economic progress, environmental stewardship and social
responsibility. In 2009, our involvement included these organizations and more:
— ACCORD — Green Seal
— Brazilian Association of — Healthy Schools Campaign
Cleaning Products (ABIPLA) — International Association for
— Business Ethics Leadership Soaps, Detergents and Maintenance
Alliance (BELA) Products (AISE)
— California Green Chemistry Initiative — International Organization for
— Canadian Consumer Specialty Standardization (ISO)
Products Association (CCSPA) — Japan Food Hygiene Association
— Canadian Institute of Public Health — Mexican Association of
Inspectors (CIPHI) Chemical Industry (ANIQ)
Social Responsibility
— Carbon Disclosure Project (CDP) — New Zealand Chemical Industry Council
Ecolab was named one of the “World’s
Most Ethical Companies” by Ethisphere — Chemical Business Association — Nordic Ecolabel
magazine for the third consecutive year. of Thailand — Plastics and Chemicals Industry
The fundamental criteria used to measure — CleanGredients Association (PACIA)
companies examined ethical leadership and — Consumer Specialty Products — Soap and Detergent Association (SDA)
corporate social responsibility — which are Association (CSPA)
integral to the way we do business. — U.S. EPA Climate Leaders
— Corporate EcoForum (CEF) — U.S. EPA Design for the Environment (DFE)
Ecolab was recognized by the — EC3 Global
Minneapolis-St. Paul Business Journal — U.S. Green Building Council (USGBC) LEED
as one of the “Best Places to Work” in — Ecologo — The Worldwide Cleaning Association (ISSA)
the Twin Cities, the home of our global — EU Ecolabel
headquarters, for the fourth year in a — Global Environmental Management
row. Rankings were based on a survey of Initiative (GEMI)
employees conducted by Quantum Market
Research and the Business Journal.
For the sixth consecutive year, Ecolab
was named to Selling Power’s list Goals
of “The 50 Best Companies to Sell For” We know that sustainability is a journey,
among the largest sales forces in the U.S. and setting goals is an important part of
The magazine uses key metrics including that journey. We have already set a goal to
compensation, training and career mobility reduce our U.S. greenhouse gas emissions
to make its determination. by 20 percent per dollar sales from 2006
Ecolab was selected as one of the top to 2012.
10 companies for iSixSigma Magazine’s This year, we are pleased to expand our
Best Places to Work™ award. The rankings commitment through our new goal to
were determined from two surveys reduce global water consumption, disposed
completed by more than 50 of Ecolab’s waste and effluent water by 18 percent per
Lean Six Sigma associates and included metric tonne of shipped product from 2009
five separate evaluation categories: job to 2015. Please see pages 18–21 and 34 for
satisfaction, culture, compensation/rewards more information.
and recognition, and training and career
development.
10 Sustainability Report
13. SUSTAINABILITY
OUR PROGRAMS
Our customers have enough to worry about. Whether
they’re concerned with cleaning, food safety or health
protection — or all of the above — they need to know
the products and services they choose will do what
they’re supposed to do. And they want to know that
they can feel good about the environmental impact of
the choices they make. That’s why Ecolab designs our
products and programs using a total impact approach.
We wouldn’t think of just removing a few controversial
ingredients and calling our solutions “green.” We look
at how our solutions will improve safety, conserve
resources and reduce waste — from manufacturing
to use to disposal. And we wouldn’t think of just
delivering products and considering our job done.
We are there when our customers need us — to
monitor results, solve problems
and maximize
efficiency.
We are there
everywhere
it matters.
We look at how our
solutions will improve
safety, conserve
resources and
reduce waste — from
manufacturing to
use to disposal.
14. OUR PROGRAMS
Innovations like no-rinse formulas, solid concentrates and
formulations that require fewer wash cycles directly reduce the
First and amount of water our customers use on a regular basis. Products
that are effective at low temperatures and solid concentrates that
foremost, our can be shipped using less fuel help customers conserve energy,
products are and we reduce waste by using minimal packaging and recyclable or
effective. renewable packaging materials where safety is not compromised.
Our Total We continually work to upgrade our MSDS
Impact Approach system and processes globally to ensure
that product safety information is up-to-
Ecolab is a leader in designing products and date and that good information is available
services that help our customers conserve in local languages. In 2009, we expanded
resources and run their businesses more our system to cover several new eastern
efficiently. We have invested millions European countries and completed work
in research and development to create necessary to expand support for additional
solutions that minimize our customers’ countries in Asia.
water and energy use, increase safety and
reduce waste. Energy and Water
We have a strong history of developing
Safety
solutions that help our customers conserve
Our products are carefully designed to help water and energy. Since the 1920s, we have
people use them safely and effectively. made improving operational efficiency a
When used as directed, our products will required component in the performance
Personal service has always been at not harm the environment or those who of our offerings. In 2009, we received
the heart of meeting our customers’ handle the products. We offer systems that recognition for several of these solutions.
sustainability needs. We have the feature color-coded, controlled dispensing
industry’s largest sales-and-service and language-free training materials. We In Europe, Ecolab received the Royal
team — and have earned a reputation for help customers by providing programs that Association of British Dairy Farmers
unparalleled expertise and round-the- include educational videos, wall charts and Prince Philip Award for its LactivateTM
clock dedication. Our representatives manuals. We also offer training assistance System, a milking equipment cleaning
are highly trained, equipped with the for our customers’ employees to help program that allows for a lower cleaning
best tools and technology available, and with the optimum and safe use of our temperature and leads to considerable
backed by an extensive technical support products, and provide a toll-free emergency water and energy savings as well as farm
system. We partner with customers to telephone number on product labels. waste reduction.
analyze their needs and results, and
While our sales have grown, medical Ecolab Ireland received a Green
consult with them on ways to conserve
emergencies have declined. Design Hospitality Innovation Award at
resources and reduce costs in their
changes, such as replacing liquid products the National Hospitality Environmental
operations while providing the quality
with solids, have made our products safer Conference in Dublin. Ecolab won the
results they need.
for customers. We have also improved our award in the reduced water consumption
hazard communication systems — including category for its integrated mopping unit,
labels and wall charts — and our material the RasantTM 360, in conjunction with the
safety data sheet (MSDS) system. cleaning product Magic Maxx,TM a no-rinse
floor cleaner for front-of-house use.
12 Sustainability Report
15. OUR PROGRAMS
ECOLAB SERVICE CAN ANNUALLY
SAVE A TYPICAL ON-PREMISE
LAUNDRY CUSTOMER
137,000
GALLONS OF WATER
And 1,100 therms of energy
U.S. MSDS Distribution
800,000
700,000
600,000
500,000
400,000
Ecolab service experts are trained to MSDS Authoring Activity
300,000
help customers identify opportunities to
save energy and water. For example, for a 200,000
customer operating an on-premise laundry, 100,000
inefficient wash processes can compromise
0
results, waste resources and increase 05 06 07 08 09
operational costs. Our service experts are
trained and certified in the proper use of
chemistries and in effective management
of wash formulas for all brands of washers Normalized Medical
and dryers — and can eliminate unnecessary Assistance Call Volume
wash cycles, reduce reclaim rates and Per $1 Million Net Sales
provide monthly reporting to monitor Europe (85%) 0.8
operational efficiency. By eliminating U.S./Canada (11%) 0.7
redundant wash cycles and over-drying,
China/Hong Kong (2%) 0.6
Ecolab service can annually save a
Latin America (1%)
customer 137,000 gallons of water and 1,100 0.5
therms of energy. Australia (<1%) 0.4
Japan (<1%) 0.3
Korea (<1%) 0.2
Taiwan (<1%)
0.1
0
05 06 07 08 09
Sustainability Report 13
16. OUR PROGRAMS
DURING A RECENT TWELVE-MONTH PERIOD
186,000
DRUMS WERE RECYCLED BY CUSTOMERS
STACKED ONE ON TOP OF ANOTHER, THESE DRUMS
WOULD EQUAL THE COMBINED HEIGHT OF OVER
350 Empire State Buildings A laundry operator in
North America was
using more than 10 million
Post-Consumer Recycled Waste gallons of water annually
Plastic Usage (U.S.) We are committed to using minimal to process 12 million
Million lbs. resources to package our products, and
pounds of healthcare
we have led the industry with innovative
3.2
product designs that significantly reduce
laundry.
3.1
the necessary packaging. In 2009, our
3.0 Small Business Solutions group launched To help the customer reduce water
a new corrugated display tray for 12 of usage, Ecolab installed the Aqua Reuse
2.9
its 14 products. The new tray was chosen system, which reuses water in the
2.8 to improve the sustainability of the rinse modules of the tunnel washer.
packaging, as well as lower cost, increase The laundry minimized its overall
2.7
pallet stability and be consistent with plant water consumption and significantly
2.6 packaging capabilities. The new design reduced the volume of wastewater
reduces the amount of paper used by more discharged to sewers.
2.5
05 06 07 08 09 than 460,000 pounds.
Our super concentrated products use
Normalized Recycled less plastic packaging to deliver the same
Plastic Usage (U.S.) amount of solution as less concentrated
Percent of Total Plastic products. The 2-liter pouches of our Oasis
20 ProTM housekeeping line of products reduce
plastic waste by 98 percent compared
with 1-gallon concentrates, generating 86
15
percent lower emissions when transported.
10
Drum Recycling
Ecolab offers a complimentary drum
recycling program to its contiguous U.S.
5 customers. During a recent twelve-month
period, over 186,000 drums were recycled
0
by our customers through this program.
05 06 07 08 09 Stacked one on top of another, these drums
would equal the combined height of over
Our percentage of recycled plastic usage has 350 Empire State Buildings. Recycling these
declined as we continue to favor flexible plastics over
rigid plastic containers. Flexible plastic packaging is drums reduced Ecolab’s need for nearly 3
less conducive to incorporating recycled plastic, but million pounds of virgin resin.
has a positive net impact on landfilling and can be
produced using 75 percent less energy.
14 Sustainability Report
18. OUR PROGRAMS
Ecolab’s superior technology, global knowledge base and
commitment to research and development allow us to continue
investing in creating innovative solutions that provide superior
performance while minimizing impact on our environment.
Raw Material Guidance Council
In 2009, we launched our Raw Material
Guidance Council. This global council
evaluates and rates our ingredients on
an ongoing basis to continually improve
the sustainability of our product portfolio.
With representatives from Regulatory,
Procurement, Quality, R&D, KIR (Knowledge
and Information Resources) and the
Sustainability Team, the council monitors
information on substances that have been
identified by regulatory agencies, academic
research groups and political organizations
as having environmental or human health
concerns.
The Council uses scientific evidence to
Our Product Formulations evaluate these substances and provides our
We believe that improving product product development teams with real-time
performance and environmental impact data and guidance early in the development
is a never-ending journey. We continually of new cleaning solutions. This information
review the environmental attributes of helps us make sound decisions regarding
raw materials and make environmental the raw materials we use — and ensures that
sustainability a key requirement in the we remain at the forefront of developing
selection of ingredients for new products effective and environmentally responsible
and services. We make sound decisions solutions.
based on scientific evidence — and consider
the total, long-term environmental impact of
each opportunity we evaluate.
16 Sustainability Report
19. SUSTAINABILITY
OUR OPERATIONS
At Ecolab, sustainability is everybody’s job — and it’s
built in to the way we operate. From manufacturing
products to operating our fleet to interacting with
suppliers, we respect people and the environment.
We never have to choose between doing what’s
right for our planet and doing what’s right for our
business — because they’re one and the same.
Around the world, we are continuously looking for
ways to be more efficient. We’d like to ensure that
the net impact of our operations is a positive one.
It’s part of our commitment to being sustainable in
everything we do — everywhere it matters.
Around the world,
we are continuously
looking for ways to
be more efficient.
20. OUR OPERATIONS
Ecolab is
committed to
reducing our Around the world, Ecolab facilities are implementing
carbon footprint. initiatives designed to reduce environmental impact.
Carbon Footprint development and other facilities in St. Paul, Managing Our Global Fleet
Minn. We have developed an energy and
To manage risks from greenhouse gas GHG reduction program for our facilities To help meet our Climate Leaders goal
(GHG) emissions and identify cost-effective and will be moving toward more fuel- and improve the sustainability of our fleet
reduction opportunities, we’ve joined the efficient vehicles and vehicle service routes, around the world, our fleet teams have
U.S. Environmental Protection Agency (EPA) as well as less GHG-intensive fuels when made significant moves to reduce our
Climate Leaders program. Through the feasible. greenhouse gas emissions. With fleets in
program, we’ve committed to the following: 60 countries, we follow the best practices
To date, we have achieved a reduction of learned from our operations in Europe
y Developing a U.S. inventory of the six approximately 7.5 percent and are confident and the other regions of the world where
major greenhouse gases emitted by our we will meet our 2012 goal. we drive smaller, more fuel-efficient
U.S. facilities. vehicles. We also continue to work with
Additionally, Ecolab is expanding our GHG
y Reporting our progress annually to manufacturers to provide vehicles that are
inventories beyond the scope of our Climate
the EPA. more fuel efficient and meet our different
Leaders reporting. Data on U.S. business
business needs.
y Setting an aggressive corporate-wide travel and global manufacturing emissions
GHG reduction goal to be achieved over are being tracked and will be reported via In 2009, we continued implementing our
five years. the Carbon Disclosure Project. fleet strategies aimed at using more fuel-
efficient vehicles and vehicle service routes,
For 2009, emissions from our global
as well as less GHG-intensive fuels when
manufacturing operations totaled 25,000
feasible.
Under the Climate Leaders metric tons. Emissions from U.S. business
program, our goal is to reduce U.S. travel (including air travel, personal vehicles 2009 Fleet Highlights
GHG emissions by 20 percent per and rental vehicles used for business),
y Through right-sizing our fleet and
dollar sales from 2006 to 2012. totaled approximately 10,000 metric tons.
management of routes and territories,
our fleet drove 4.3 million fewer miles
U.S. C02e Emissions than in 2008.
Normalized C02e
Metric Tons/$1 Million Sales y 98 percent of our fleet drivers completed
eco-driving training to minimize fuel
80
consumption and change their
Our U.S. GHG emissions from our direct and
driving habits.
indirect energy uses total approximately 75
200,000 metric tons annually. To achieve 70 y We continued our efforts to procure more
our goal, we are focusing on our two fuel efficient vehicles:
65
largest GHG emissions categories — fleet
— 811 cab/chassis trucks with 47 percent
ground transport and our facilities for 60
better fuel efficiency (compared with
manufacturing, headquarters, research and 55
prior vehicles)
50
45
40
06 07 08 09 12
18 Sustainability Report
21. OUR OPERATIONS
262
TONS OF PLASTIC
KEPT OUT OF
LANDFILLS IN ONE YEAR
— 150 diesel cargo vans with 25 percent The sustainability team also engaged a Mandras, Greece
better fuel efficiency (compared vendor to recycle plastic bottles, which are As a result of Lean Six Sigma and SKU
with gas-powered vans) reground and sold to make flower pots and rationalization projects, our Mandras plant
curbside trash cans. Even with a 1.3 percent had five pallets of cardboard — 3,000
— 300 U.S. EPA-certified
increase in production, the plant managed units — that were obsolete and no longer
SmartWay vehicles
to increase the amount of material kept out could be used in production. Rather
— More than 30 hybrid vehicles of landfills by 57 percent over 2008 — 26 than disposing of the cardboard, the
tons reused and 361 tons recycled. plant cut the cardboard and used it in
place of cartons they had previously had
Managing Our Operations Cheadle, United Kingdom
to purchase, avoiding the need to buy
Greensboro, North Carolina At the Ecolab plant in Cheadle, all large additional cardboard.
packaging is returned to the plant once
Our plant in Greensboro continued to build
emptied by the customer. In the past, it St. Paul, Minnesota
on its successful recycling initiatives this
wasn’t feasible to wash and reuse the Early in 2009, we replaced the signage on
year and found new ways to keep waste
20-liter containers, because their adhesive the exterior of our corporate headquarters
out of landfills. For each identified waste
labels left a residual glue that needed to be building in St. Paul with signage lit by LED
stream (including bottles, cartons, caps,
removed with a solvent and compromised (light-emitting diode) lights. LED lights
sprayers, raw materials, obsolete product,
the quality of the containers. have a 15- to 20-year life cycle, and reduce
totes, drums, cartons and plastic), the plant
sustainability team asked: energy usage over the former neon tube
With a switch to plastic sleeves, the plant
lighting. The new signage also allows for
was able to re-evaluate the recycling of
y Can we reuse or rework the item? better air flow in and around the ductwork
the containers. In 2009, the Cheadle team
at the top of the building, further reducing
y Can we sell to another source that began washing and reusing the containers.
energy use by making it easier to cool the
can reuse? The PE (polyethylene) sleeves are also
building in the summer.
recycled. In one year, this program kept 262
y Can we give away or donate the item?
tons of plastic out of landfills. At our facilities in St. Paul and Eagan,
y Can we repurpose the item? Minn., we implemented power management
Grapevine, Texas
features to put PCs and monitors to sleep
Fiber drums, which had previously been
We changed our lighting system at our when not in use. Information Technology
sent to the local landfill, are now used to
distribution center in Grapevine, reducing updated systems to automatically turn off
hold powder from dust collectors and to
power usage by 673,744 kWh per year — monitors after 20 minutes of inactivity
collect process waste from a manufacturing
the equivalent of saving 55,618 gallons of and enter standby mode after two hours
line — avoiding the need to dispose of the
gasoline or 1,324 barrels of fuel oil, and the of inactivity. Nearly 3,000 desktop
drums, as well as the need to purchase new
air-scrubbing equivalent of a 124-acre forest computers and 1,200 laptops were affected
containers. In 2009, the plant repurposed
or taking 109 cars off the road. by the project, reducing carbon dioxide by
2,100 fiber drums.
approximately 1,200 metric tons.
Sustainability Report 19
22. OUR OPERATIONS
Ecolab pledges to reduce
global water consumption,
disposed waste and effluent
water by 18 percent per metric
tonne of shipped product from
2009 to 2015.
Manufacturing Metrics 2009 2009 Normalized
Water Consumption
(m3) (m3 per mt product)
We have been striving to reduce the
impact of our operations for years by Asia Pacific 143,783 1.07
setting internal goals for improvement.
Our 2009 data, shown here, serves as EMEA* 354,291 0.98
our baseline as we work to increase
Latin America 47,360 0.98
transparency by publicly committing to
our 2015 reduction goal. North America 1,088,634 1.46
GLOBAL 1,634,068 1.27
2009 2009 Normalized
Disposed Waste (mton) (kg per mt product)
Asia Pacific 3,108 23.2
EMEA* 7,354 20.4
Latin America 851 17.7
North America 9,239 12.4
GLOBAL 20,552 15.9
(Disposed waste includes both solid and hazardous wastes)
2009 2009 Normalized
Effluent Water
(mton) (mton per mt product)
Asia Pacific 67,894 0.51
EMEA* 216,774 0.60
Latin America 12,115 0.25
North America 579,259 0.78
GLOBAL 876,042 0.68
*Europe, Middle East, Africa
20 Sustainability Report
23. OUR OPERATIONS
SUSTAINABILITY
ACTIONS
In 2009, we launched an
internal campaign aimed at
educating our associates about
sustainability. Sustainability
Actions is an e-newsletter sent
regularly to associates around
the world with information on
steps they can take to reduce
their impact on the environment
on and off the job — including
topics like conserving energy,
reducing paper usage and
improving fuel efficiency.
Reducing Our ISO 14001 Environmental EHS Compliance Auditing
Manufacturing Footprint Management Systems and Capital Expenditures
The International Organization for To enhance environmental health and
We are committed to continuous
Standardization (ISO) 14001 environmental safety compliance in our manufacturing
improvement and are announcing our
management system is a voluntary system operations, North American facilities are
goal to reduce global water consumption,
for managing environmental aspects of audited by a third-party consultant on a
disposed waste and effluent water by
business operations, somewhat similar to periodic basis. Similarly, in Europe and Asia
18 percent per metric tonne of shipped
the ISO 9001 quality system. This sought- Pacific, an outside EHS consultant audits
product from 2009 to 2015.
after designation includes guidelines our plants. Audits are performed when
for how organizations work to prevent facilities are acquired, and our property
Monitoring and Management pollution, conform to legal requirements, and casualty insurers conduct fire and
minimize impact on the environment worker safety assessments and pressure
Ecolab strives to use resources efficiently
and continuously improve environmental vessel certifications at Ecolab facilities.
in our manufacturing operations and to
performance. Currently, 42 percent of These auditing programs help us continually
reduce waste to improve our environmental
Ecolab facilities worldwide are ISO 14001 improve our EHS performance.
performance. We invest in improving
certified.
energy efficiency and conservation in our
operations. We also minimize and seek to We are in the process of implementing plans
eliminate the release of pollutants that may to certify additional facilities. In 2010, our
cause damage to our planet’s air, water, land locations in Toronto and St. Paul, Minn.,
or inhabitants. will complete the ISO 14001 certification
process, with the remainder of North
We continuously monitor the environmental,
American locations planned to achieve
health and safety compliance standards
certification by 2012.
of our manufacturing facilities around the
globe. Internal and third-party audits lend
integrity to the process and lead us toward
a more sustainable business model.
Sustainability Report 21
24. OUR OPERATIONS
EPCRA SARA 313 Releases to the Air/Environment A team of Ecolab Water,
Form R Releases As required by the U.S. Emergency Planning Energy & Waste experts
Thousand lbs. and Community Right-to-Know Act (EPCRA), assessed 11 plants for
Ecolab facilities make information available
7
about releases of EPA-listed chemicals to
a North American
6
the environment. The primary chemicals
food and beverage
5 reportable are formula components that processing chain.
evaporate during production.
4
Our Total Plant Assessment process
3
Remediation Sites enabled the team to evaluate each
Ecolab makes aggressive efforts to avoid plant holistically, then prioritize
2
pollution in our operations. We continue recommendations so those with the
1 to work in cooperation with regulatory lowest investment and greatest return
authorities for successful closure of the few could be implemented first. The team
0
04 05 06 07 08 sites where Ecolab has been named as a found opportunities to reduce water
“potentially responsible party.” use by 22 percent and energy use by
2009 release volumes will not be available until
mid-2010.
27 percent.
In 2009, Ecolab spent approximately
$1,725,000 worldwide on environmental
Product Shipment remediation. Our environmental
Spills or Incidents remediation expenses have related
U.S. DOT Form 5800 primarily to two categories: businesses
acquired by Ecolab and accounted for in
140
connection with the transaction; or historic
120 businesses divested years ago.
100
Safe Transportation of Goods
80 Ecolab works with national and
60
international agencies to help craft future
standards regarding the safe transport of
40 goods and to ensure that Ecolab products
20 are delivered to our customers safely.
0
05 06 07 08 09
22 Sustainability Report
25. WATER SAVINGS ANNUALLY
280,000,000 gallons
equivalent to the needs of more than
3,000 U.S. households
ENERGY SAVINGS ANNUALLY 310,000 DECATHERMS
26. OUR OPERATIONS
Our Supply Chain Ethical Sourcing
Value of Covered Spend in Millions
Ethical Sourcing Standards
$600
Our Ethical Sourcing Standards represent
a global supply chain initiative to require $500
our direct suppliers to protect the health, $400
safety and human rights of their associates.
$300
Suppliers must meet standards for forced
labor, child labor, health and safety in $200
the workplace, fair pay, harassment in
the workplace, diversity and ethics and $100
environmental policies. We require that $0
our suppliers identify and act swiftly to 07 08 09
eliminate any unacceptable conditions or
practices in their facilities. We will not do
business with suppliers who do not support Purchasing from Diverse Suppliers
the fundamental principles of human To promote sustainable growth across
dignity and rights of workers to fair and different sectors, Ecolab policy encourages
equitable treatment. and affords opportunities to diverse
Our supplier requirements are based on suppliers while ensuring that we receive
these international standards: the highest quality products and services at
the most competitive prices. Our Supplier
y United Nations Universal Declaration Diversity Program is founded on the
of Human Rights, which sets a common principles of fair and equitable business
standard of achievement for all peoples practices and social responsibility to the
and nations and represents a set of core communities we serve.
international ethical standards.
Ecolab continued to strengthen its supplier
y United Nations Convention on the Rights diversity program this year by overseeing
of the Child, which has been ratified by the registration of diverse suppliers on
almost all member states in the UN and its Supplier Diversity Portal and providing
provides a framework for interpreting the internal diversity education and training.
best interests of the child. Community involvement remained a focus
with Ecolab associates, representing a
y Conventions of the International Labour
variety of purchasing areas. Associates
Organization, which sets international
took part in matchmaking events at both
labor standards including Fundamental
the Minority Business Opportunity Fair and
Principles and Rights at Work.
Government Procurement Fair.
For 2010, our objectives are to further
In 2009, our U.S. purchases from small
enhance spend coverage under this
businesses totaled approximately 11
program and to expand documentation
percent of total spend, with new contracts
requirements to provide better disclosure
awarded to diverse and woman-owned
on our suppliers’ environmental policies
small businesses in the areas of travel
and practices.
management and pharmaceutical contract
manufacturing.
24 Sustainability Report
27. SUSTAINABILITY
OUR ASSOCIATES
Our strength has always been in our people. Our
customers feel safe, secure and supported because
they know they have a whole team of Ecolab
associates backing them up, with expertise in every
area of business — research and development,
customer service, legal and regulatory, finance,
operations and procurement, human resources. The
Ecolab experience is unparalleled in our industry
because of each and every one of our 26,000
associates. We are all a part of something bigger,
adding value to the world. We feel good about coming
to work because we all have the ability to make an
impact — everywhere it matters.
The Ecolab experience
is unparalleled in our
industry because of each
and every one of our
26,000 associates.
Sustainability Report 3