STANDAR

1. To: Supply Chain DOMs and EOHS Coordinators
cc: Dave Groener, Bill Faraday, Category SCVPs, Category SC Management, GSC
Leadership Team, Global EOHS Council, Global Energy Reduction Team
From: Vance Merolla
Date: April 22, 2008
Subject: Carbon Dioxide (CO2) in CP’s Supply Chain
One of Colgate’s Supply Chain environmental performance goals is to reduce absolute emissions
of Carbon Dioxide (CO2) by 5% by 2010, with 2002 as a base year. This translates to
approximately 25% reduction of CO2 per ton of product produced - a significant challenge.
This communication is meant to provide additional information about Colgate’s CO2 emissions,
including why CO2 is important, and what CP plants can do to reduce their CO2 emissions to help
achieve Colgate’s goals.
Why is CO2 Important?
Although CO2 is a colorless non-poisonous gas, essential for photosynthesis, it is also the
predominant greenhouse gas (GHG) contributing to what many scientists believe is a greenhouse
effect causing global warming. During the combustion of fossil fuels (such as oil, gas and coal)
carbon is transformed into CO2. Concentrations of CO2 in the atmosphere have increased from
280 parts per million (ppm) in pre-industrial times to over 380 ppm today, mostly as a result of
burning fossil fuels.
As governments, businesses and people try to reduce the amount of CO2 generated, many are
beginning to analyze their emissions by developing a quantifiable “carbon footprint”. For CP, the
primary elements of the company’s “carbon footprint” can be seen in Attachment 1.
Understanding the origins, quantities and reduction opportunities related to our “carbon footprint”
will assist in our continuous improvement in this area, and will allow us to better communicate
with our internal and external stakeholders. Efforts to more fully quantify these areas are already
underway.
Supply Chain CO2 Sources & Calculations
The primary source of CO2 emissions in CP’s Global Supply Chain is from the use of energy to
run our manufacturing, warehouse, office and research facilities. CO2 emissions at our plants are
generated from two sources: Direct sources and Indirect sources. Direct sources include emissions
from the on-site burning of natural gas, fuel oil and coal. Indirect sources are emissions generated
as a result of our use of purchased electricity from local electricity generating facilities.
Attachment 2 shows the percent of our CO2 generated from Direct and Indirect sources.

2. The graph below illustrates that Colgate’s CO2 emissions are primarily generated from the
electricity we purchase.
CP C02 Emissions by Energy Source- 2007
Electricity
72%
Gas
23%
Coal
2%
Fuel Oil
3%
Our global Environmental database automatically calculates the estimated CO2 from each facility
by using the energy data input each quarter by the plants. The calculation uses “fixed” conversion
factors for the on-site burning of natural gas, fuel oil and coal (direct emissions) and “country-
specific” conversion factors for purchased electricity (indirect emissions). Since each country
uses a different mix of fuel sources to generate electricity (e.g. such as coal, oil, gas, nuclear,
wind, solar), the “country-specific” factors vary based on each country’s electricity generating
facilities. A sample CO2 calculation for a CP factory is included in Attachment 2.
CP CO2 Emissions and Performance
Since 2002, we have been collecting information about each facility’s energy and fuel usage type
in the global environmental database. This data forms the basis for estimating and tracking our
progress towards reducing CO2.
As shown in Figures 3 & 4 in Attachment 3, although we have continuously improved our CO2
emissions per ton by 14.3% since 2002, our absolute CO2 emissions have increased by 3.9%. This
is a reflection of our strong production volume growth of approximately 21% from 2002-2007. In
order to achieve our 5% absolute reduction goal, we will clearly need to do some things
differently.
A primary focus to achieve our aggressive reduction goals will be to improve performance at our
larger strategic facilities in all geographic divisions. This is critical since nearly 50% of the
Supply Chain’s CO2 emissions come from 10 of our largest facilities (see Figure 6, Attachment 3).
A significant amount of work to identify and execute energy reduction projects, including
extensive 3rd
party energy surveys, has been accomplished at our Supply Chain facilities over the
past 4 years. This year, we will undertake an effort to perform comprehensive Strategic Energy

3. and Greenhouse Gas (GHG) Emissions Assessments at some of our strategic sites. These
assessments will go beyond the traditional area of plant utilities, and will include:
Summary of Baseline Energy usage & GHG emissions
Projection of Future (3-5 years) Energy usage & GHG emissions
Evaluation of Options to reduce Energy & GHG emissions – current and future
A LEED Green Building pre-assessment and gap analysis
A review of Renewable Energy Options
Additional data graphs are provided in Attachment 3, including CP CO2 emissions by Category,
Division and Country. Individual site CO2 emissions graphs and data are available in the CP
global Environmental database.
Strategies to Reduce CO2 in the Supply Chain
In order to support our CO2 goals, it is important that all Supply Chain facilities, large and small,
participate in the reduction efforts. The primary way to reduce CO2, as discussed above, is by
reducing the amount of energy we use to produce our products. Increasing Energy Efficiency
helps reduce the amount of electricity, gas, oil and coal we use, thereby helping to reduce our
carbon footprint.
As communicated over the past several years by Dave Groener, it is expected that all CP
manufacturing sites do the following:
1. Set site Energy and CO2 goals
2. Conduct annual site energy assessments (using either internal or external resources)
3. Implement the 1.5% budgeted 2008 CEB towards Energy Reduction projects
4. Have appropriate site personnel take the CP Energy Reduction E-Learning course
Several resources are available to assist with these activities, including: the CP Global Energy
Reduction Team, the CP Energy Reduction Guidebook, Energy Survey reports from other CP
sites, an energy survey checklist and roadmap, and energy project best practices. This information
is all available on the Global EOHS website on OurColgate.com.
We are also evaluating the feasibility of various alternative and renewable energy projects such as
solar, wind, and cogeneration for select Supply Chain facilities. These alternative strategies have
potential to be useful in reducing CO2 even as our business grows strongly into the future.
Additionally, strategies to utilize “renewable” energy options offered by electric utilities and
providers are being studied as a future potential way to support the growth of a lower CO2 energy
infrastructure.
Our CO2 and Energy goal initiatives are a demonstration of our corporate values of Caring,
Continuous Improvement and Global Teamwork and will better allow us to communicate our
commitment to external stakeholders, shareholders, our customers and employees in a visible and
meaningful manner.
Thank you for your support, and please feel free to contact me if you have any questions.
Vance Merolla
attach.

4. Attachment 1
Figure 1: CP’s “Carbon Footprint” and CO2 Emission Sources

5. Attachment 2
Figure 2: Direct & Indirect CO2 Emission Sources
Sample Calculation of CO2 Emissions at a CP Plant
In order to estimate CO2 emissions from a CP Plant, energy information is required, along with
the direct and indirect conversion factors.
As an Example, if a CP manufacturing site in China, had the following energy usage data for
4Q07:
On-site Natural Gas usage = 7,500 m3
On-site Fuel Oil usage = 5,000 litres
On-site Coal usage = 20,000 kg = 20 Mg
Purchased Electricity = 10,500 kWhx1000
The CO2 emissions would be calculated using the following equation:
Using the China country-specific electricity factor of 753.88 kg CO2/kWhx1000, the site’s
estimated CO2 emissions for 4Q07 would be:
Total CO2 = (10,500 x 753.88) + (7,500 x 1.920) + (5,000 x 2.676) + (20 x 2826)
= 8,000,040 kg = 8,000 metric tonnes CO2

6. Attachment 3
CP Supply Chain CO2 Performance Data
Figure 3: Global Absolute CO2 Emissions (2002-2007)
Global CO2 Emissions per ton
138139
147
153
160161
0
20
40
60
80
100
120
140
160
180
2002 2003 2004 2005 2006 2007
Year
kgCO2/tonofproduct
Figure 4: Global Per Ton CO2 Emissions (2002-2007)
Global CO2 Emissions
675664660665657650
0
100
200
300
400
500
600
700
800
2002 2003 2004 2005 2006 2007
Year
MetricTonsx1000
2010 Goal

7. CO2 Emissions: by CP Category - 2007
AMED
6%
Home Care
24%
Oral Care
26%
Personal Care
21%
Pet Care
15%
Technology
3%
Toothbrushes
5%
Figure 5: CO2 Emissions by Category (2007)
C02 Emissions: Top 10 CP Facilities - 2007
Bangpakong
Other 60 CP
Plants
Mission Hills
Cambridge
Hill's Richmond
Hill's Bowling
Green
Anzio
Jeffersonville
Huangpu
Mexico City
Sanxiao
Figure 6: CO2 Emissions by Facility (2007)

8. CO2 Emissions: by CP Division - 2007
Tech
Africa/ME
Asia
21%
Europe
13%
Hill's
15%
Latin America
25%
North
America
17%
Figure 7: CO2 Emissions by Division (2007)
C02 Emissions: by CP Country - 2007
All Other CP
Countries
54%
CP China
9%
CP Mexico
13%
CP USA
24%
Figure 8: CO2 Emissions by Country (2007)