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Sustainability Report 2009
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.
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
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
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
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
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
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
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
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
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
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
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.
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
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
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
WATER SAVINGS ANNUALLY


3,960,000 gallons
         enough to wash more than

99,000 loads of residential laundry
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
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.
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
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
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
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
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
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
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
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
Sustainability Report 2009
Sustainability Report 2009
Sustainability Report 2009
Sustainability Report 2009
Sustainability Report 2009
Sustainability Report 2009
Sustainability Report 2009
Sustainability Report 2009
Sustainability Report 2009
Sustainability Report 2009
Sustainability Report 2009
Sustainability Report 2009
Sustainability Report 2009

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Sustainability Report 2009

  • 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
  • 17. WATER SAVINGS ANNUALLY 3,960,000 gallons enough to wash more than 99,000 loads of residential laundry
  • 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