Ethical Business

They’re Two sides of The same susTainabiliTy sTraTegy

investing in People, investing for the Planet

2010 Public rePorT

About This Book There’s more than one facet to sustainable business,

and at SC Johnson, we believe in taking a holistic

approach. That's why the printed edition of this

Public Report had two covers and two ways to get

to know SC Johnson. For this online edition, we've

compiled the two sections into one handy PDF.

Interested in social progress and public health?

Start reading here. Interested in our environmental

leadership? Turn to the second half of the book and

our alternate cover, on page 25 of this online PDF.

Either way, the whole book is about how SC Johnson

is making the world better.

What’s in This Half? SC Johnson at a Glance — a look at our

organization, stakeholders, and recent social and

community milestones. PAGE 4

Celebrating Philanthropy — marking the 50th

anniversary of the SC Johnson Fund, Inc. PAGE 6

Strengthening Communities — how we’re building

businesses at the base of the pyramid and investing

in communities around the globe. PAGE 10

Protecting Families — our continuing efforts to

prevent insect-borne diseases through research,

education and products. PAGE 16

Offering Great Workplaces — how we’re protecting

the safety and well-being of our people, as well as

our unique and respected culture. PAGE 20

Find Out More Want to know more about SC Johnson? Visit our web site to find out about the company and its history. We're at www.scjohnson.com

SC Johnson’s Holistic Approach to Sustainability

Our sustainability efforts target four key areas where we believe we can make the biggest impact on quality of life, economic progress, our product mix and the planet. They are ...

Improving Our Products: Choosing more earth- responsible ingredients.

Reducing Resource Use: Reducing energy consumption and greenhouse gas emissions.

Strengthening Communities: Advancing social progress and public health.

Protecting Families: Preventing insect-borne diseases.

©2010 S. C. Johnson & Son, Inc.

4,102 gallons of wastewater flow saved and 894 pounds of greenhouse gas emissions avoided — all by printing this report on paper manufactured with post-consumer fiber and renewable wind power. It’s the equivalent of planting 573 trees. This book also uses eco-friendly inks and low-VOC emitting water-based coatings.

This cover reflects a few examples of how we’re making a difference for families, from investing at the base of the pyramid, to helping fight insect-borne diseases, to offering inspiring workplaces.

2010 PUBLIC REPORT 3InVESTInG In PEOPLE, InVESTInG FOR ThE PLAnET

Making life better for people and the planet is our mission at SC Johnson.

Part of being a responsible company is working

hard to play our role in helping to solve the world’s

environmental problems and, importantly, also helping

those who buy our products make more responsible

choices. This is an opportunity that inspires us every

day at SC Johnson. Making life better for people and

the planet is our mission.

Over the last year, we further reduced greenhouse gas

(GHG) emissions, increased our use of renewable energy

and invested in continually improving our products.

We also have worked hard to provide more industry-

leading transparency for our consumers by labeling our

products with their ingredients. We want our consumers

to scrutinize the careful ingredient choices that we make

so they can continue to trust our enduring brands.

We have begun laying the groundwork for our next

five-year strategy, which includes expanding our

GHG focus to address the full product lifecycle and

working in new ways to minimize landfill impact.

But these efforts are just part of our sustainability

story. In 2009, we also continued to fulfill the

obligation for business to drive social progress.

We celebrated the 50th anniversary of our philan-

thropic arm, the SC Johnson Fund, Inc., as well as

ongoing philanthropy by the company that began

decades earlier. We continued to invest in base-

of-the-pyramid business co-creation.

And, through investments such as our collaboration

with the Bill & Melinda Gates Foundation, we further

extended our efforts to prevent the insect-borne

diseases that affect millions of families around

the world each year.

This year, our public report has two different

covers and routes to get to know SC Johnson.

But they converge on the same belief —

that business has both an opportunity

and an obligation to make the world

better by advancing environmental

and social progress.

By sharing our company’s efforts

across both the environmental and

social facets of sustainability, this 2010 Public Report

aims to highlight the many ways in which we’re

bringing this belief to life.

It’s a commitment we’ve upheld for more than 120

years, and an aspiration shared by the 12,000 people

of SC Johnson. I continue to be very proud of, and

grateful for, the difference we’re able to make.

H. Fisk Johnson, Chairman and CEO

4 SC JOHNSON AT-A-GLANCE WWW.SCJOHNSON.COM

SC Johnson at a Glance 12,000 people working in 70+ countries to make the world better.

Environmental

• Continuously improving the raw materials scores of our products as measured by our Greenlist™ process.

• Reducing combined air emissions, water effluents and solid waste 50% by 2011, versus the 2000 baseline. Achieved in 2009.

• Reducing on an absolute basis U.S. greenhouse gas (GHG) emissions another 8% by 2011, versus our 2005 baseline. Achieved in 2008.

• Reducing on an absolute basis GHG emissions for all worldwide factories 12% by 2011, versus the 2000 baseline. Achieved in 2008.

• Sourcing 40% of global electricity from renewable energy.

Social

• Contributing to public health by helping minimize the spread of insect-borne diseases through products and education.

• Developing partnerships and programs that create mutual value at the base of the economic pyramid and contribute to local quality of life.

• Supporting communities through philanthropy and employee volunteerism.

Economic

• Continually growing by meeting consumer needs with innovative products of superior quality and value that enhance people’s lives.

• Contributing to the economies of our host communities by providing employment and partnering with organizations to create growth and opportunity.

• Ensuring that new investment fits constructively into the economic development progress of each host country and local community.

Organized for Sustainability At SC Johnson, we believe sustainable business is a company-wide responsibility. Because we approach sustainability holistically, it doesn’t just get discussed by a “green team.” Rather, everyone shares the job of thinking about sustainability implications, and more than 130 people are formally focused on it.

Here are just a few of the Johnson leaders who have sustainability targets as part of their accountability:

Chairman and CEO

President – Chief Technical Officer

President – Developed Platform

President – Developing Platform

Executive Vice President – Worldwide Corporate and Environmental Affairs

Senior Vice President – Global Product Supply

Senior Vice President and Chief Administrative Officer

Senior Vice Presidents/Vice Presidents – Business Units and New Product Development

Plus, these functions are focusing on sustainability topics for the worldwide company each and every day:

Environmental and Safety Actions

Safety Assessment and Regulatory Affairs

Research, Development & Engineering

Safety/Health, Environment and Quality

Sustainable Innovation

Community Leadership

Public Affairs and Communication

Government Relations

Our Stakeholders SC Johnson’s values are articulated in This We Believe — our statement of expectations for operations around the world. This We Believe is much more than simply a written document; it is the essence of who we are and how we operate. Failure to operate with integrity is not tolerated. You can find the full text of This We Believe at www.scjohnson.com/en/company/principles.aspx

This We Believe explains SC Johnson’s values in relation to the groups of people, shown below in blue, to whom we are responsible and whose trust we have to earn. In support of our principles, we also regularly interact with a variety of other external stakeholders, shown below in green.

Sustainability Objectives Our 2011 strategy calls for the achievement of these sustainability objectives:

Find It Online: Want to know more about SC Johnson? Visit our web site to find out about the company and its history. Plus, you can visit our online

Public Report at www.scjohnson.com/2010Report for a list of the 2009 members of our Board of Directors.

World Community Media

Customers and PartnersEmployees

Consumers and Users

Industry Associations

Neighbors and Hosts

General Public

NGOs

Policy Makers

2010 PUBLIC REPORT 5INVESTING IN PEOPLE, INVESTING fOR THE PLANET

A Look at News from 2009 SC Johnson is a leading global manufacturer of household products. But despite 124 years

and billions in sales, we still have a “small town” commitment to making a positive difference

in the communities where we operate. Here’s a brief look at a few of our accomplishments …

And throughout the year ... from January through December 2009, SC Johnson companies were named to local employer-of-choice lists compiled by the Great Place to Work Institute®, Hewitt Associates and others. Among the SC Johnson operations honored in 2009 were our companies in Argentina, Canada, Central America, Chile, Germany, Italy, Mexico, Turkey, United States and Venezuela.

APRIL

SC Johnson Mexico is honored with the Socially Responsible Enterprise Award from the Mexican Center for Philanthropy (CEMEFI). SC Johnson is one of only 10 companies in Mexico that have received the award for nine years in a row.

NOVEMBER

SC Johnson announces its first commitment through the Clinton Global Initiative. Focusing on malaria prevention, SC Johnson will roll out an information, education and communication program in partnership with the Global Business Coalition on HIV/AIDS, TB and Malaria. The program draws from SC Johnson’s experience combating malaria and will be designed to help NGOs, governments, businesses and community health groups support families at risk of contracting the disease.

SC Johnson launches the newly updated web site www.scjohnson.com, designed to not only offer product and corporate information, but also provide a place to share experiences and inspire one another. The site includes family-focused elements such as “Family Economics,” where external bloggers share ideas for getting more out of every household dollar and enjoying every minute with family.

SC Johnson joins Kroger’s “Giving Hope a Hand” campaign to raise money to fight breast cancer. Working with Kroger, we pledge $280,000 to support non-profit organizations targeting this cause, and develop specially designed displays and packaging featuring Winnie Marquart, sister of Chairman and CEO Fisk Johnson, sharing her breast cancer survivor story.

OCTOBER

Despite the tough economy, SC Johnson employees contribute more than $855,253 to the annual United Way campaign in the United States. The SC Johnson Fund, Inc. matches the pledges dollar-for-dollar, meaning United Way-supported agencies receive more than $1.7 million from SC Johnson and its people.

SEPTEMBER

SC Johnson is recognized as a top company for diversity by prestigious organizations including AARP (Best Employer for Workers Over 50), Working Mother magazine (100 Best Companies for Working Mothers), Hispanic Business Magazine (Top 60 Companies for Diversity), and the Human Rights Campaign (scoring 100 percent on the group’s Corporate Equality Index, which rates companies on their fair treatment of gay, lesbian, bisexual and transgender employees, consumers and investors).

JUNE

SC Johnson announces a 28-month partnership to benefit thousands of Rwanda pyrethrum farmers by helping them enhance the collection, drying and transportation of higher-quality pyrethrum flowers. The effort aims to enable farmers to increase their families’ income, as well as result in an increased supply of sustainable East African pyrethrum for key pur- chasers like SC Johnson. Pyrethrum is a natural insecticide that is used in some of SC Johnson’s pest control products such as its Raid® and Baygon® brand insecticides.

SC Johnson ranks sixth among the top 10 companies for disabilities and in the top 50 companies for diversity, according to the ninth annual list published by DiversityInc.com.

MARCH

6 CELEBRATING PHILANTHROPY WWW.SCJOHNSON.COM

IN THE LAST 10 YEARS ALONE, THE SC JOHNSON FuNd, INC. HAS ALLOCATEd: > 411 grants totaling $51.7 million to organizations supporting social equity.

> 100 grants totaling $13.2 million to organizations supporting economic vitality.

> 73 grants totaling $6.7 million to organizations supporting a healthy environment.

The SC Johnson Fund, Inc. — 1959-2009

Five Decades of Philanthropy

Follow links to more information wherever you see this symbol.

We believe in having

a positive impact on

the communities in

which we operate

and the world at large.

2010 PuBLIC REPORT 7INvESTING IN PEOPLE, INvESTING FOR THE PLANET

Making Life Better for Families Throughout its history, SC Johnson has contributed to community and charitable efforts

in the belief that the company cannot be healthy on the inside unless our communities

outside are healthy, too.

This commitment to philanthropy goes back to the

company’s beginnings. Herbert F. Johnson, Sr., son

of company founder Samuel C. Johnson, helped set

up a Racine community fund in the 1920s. Today, the

SC Johnson Fund, Inc. continues that long tradition

by matching employees’ United Way contributions

in all the communities where we have employees

throughout the United States.

In keeping with this commitment, in 1959, the

SC Johnson Fund was incorporated with the goal

of supporting non-profit organizations and programs

that have a positive impact on the communities in

which we operate and the world at large.

Grants that Drive Growth Grants are made to support existing non-profit

organizations or programs focused on defined areas

of interest such as the environment, social equity

and economic vitality. Recipients must demonstrate

broad-based support from, and collaboration with,

other community groups.

Organizations submit a request for financial support

to the Fund; its Board of Trustees reviews the requests

several times a year and recommends support for

various proposals.

Ongoing Programs that Help The SC Johnson Fund also has ongoing programs to

involve employees and the community in philanthropic

efforts. For example, the Educational Matching Gift

program matches employees’ and retirees’ cash or

stock gifts to accredited educational institutions, up

to $6,000 per year for each employee or retiree.

Along with a Sons & Daugh-

ters Scholarship Program for

dependents of employees

and retirees, the SC Johnson

Fund also established a

Young Leaders Scholarship

program to assist economi-

cally disadvantaged high

school seniors of non-

employee families in the

Racine area. Students who plan to continue their edu-

cation in college or vocational schools can apply for

renewable scholarships. More than $1.5 million in Young

Leaders scholarships have been granted since 2002.

In addition, the SC Johnson Fund in 2001 launched

a Dollars for Doers program to recognize employee

and retiree volunteer time. The Fund awards $250 to

non-profit organizations for 40 hours of service there

by employees or retirees in a fiscal year. More than

$350,000 has been awarded so far.

Among 45 new scholarship recipients in 2009, one was Eric Wagers, pictured here with his parents who are both SC Johnson employees.

Milestones in Making an Impact The SC Johnson Fund, Inc. has granted millions of dollars to local and global organizations. Here are a few

examples in recent years.

$3 million to

The Nature Conservancy

for conservation of bio-

diversity and promotion

of compatible economic

development in the

Caatinga eco-region

of Brazil.

1998 $9 million to Racine Charter One, Inc.,

supporting 21st Century

Preparatory School,

a K-8 independent

school established for

Racine’s diverse student

population.

2002 $2.2 million to the Mayo Foundation

for Medical Education

and Research, to support

the Samuel C. Johnson

Program in the Genomics

of Addiction.

2004 $3 million to the Johnson Foundation

at Wingspread, which

this year is focusing

attention on the emerging

freshwater crisis in the

United States.

2009

73% social equity

18% economic vitality

9% healthy environment

Total SC Johnson Fund, Inc. grant dollars allocated by interest area, 2000-2009

8 CELEBRATING PHILANTHROPY WWW.SCJOHNSON.COM

50 Years of Help, a World of Difference Since its inception in 1959, the SC Johnson Fund, Inc. has provided hundreds of grants to

non-profit organizations working to better their communities. Here are just a few examples

of organizations that have received support from the SC Johnson Fund.

Alliance for the Great Lakes

The mission of the Alliance for the Great

Lakes is to “conserve and restore the

world’s largest freshwater resource

using policy, education and local efforts,

ensuring a healthy Great Lakes and clean water for

generations of people and wildlife.”

To accomplish this mission, the

Alliance works with residents,

scientists, teachers, policymak-

ers and others to preserve the

Great Lakes. The program has

several focus areas, including

water quality, water conserva-

tion, habitat recovery, and

education and outreach.

The SC Johnson Fund has provided $66,000

in funding to the Alliance for the Great Lakes to

develop a local Adopt-a-Beach™ program and to

educate area youth about the importance of the

Lake Michigan coastline.

Opportunities Industrialization Center

The Opportunities Industrialization Center

is a worldwide organization of local affili-

ates that provide employment-related services to

dis advantaged members of the community. The

OIC of Racine County focuses on working with

young adults to help them stay in school, graduate

and learn job skills.

The OIC’s Youthbuild Racine

GreenTech Project provides

hands-on, on-site training in

green housing construction and

rehabilitation. The program pro-

vides skills to participants while

also increasing the supply of

affordable, energy-efficient low-income housing.

The program aims to transition at least half of

participants into a construction trade apprentice-

ship and to graduate at least 75 percent in a GED

or high school equivalency program.

Since 1996, the SC Johnson Fund has provided

$1,073,000 to the OIC of Racine County.

First Choice Pre-Apprenticeship Training

First Choice Pre-Apprenticeship

Training provides low-income,

unemployed and underemployed

individuals in Racine with skills necessary for

the construction and skilled trade industries.

The goal is to improve employment opportunities

by providing the skills needed to obtain family-

supporting wages.

Hundreds of workers have completed the

program and secured area construction jobs,

including employment on a major Milwaukee

freeway interchange and on a new building at

SC Johnson’s world headquarters.

Since 2002, the SC Johnson Fund has

provided $331,850 in funding to First Choice

Pre-Apprenticeship Training, which is now

managed by Human Capital Development Corp.

Feeding America

Feeding America is a nationwide

network of more than 200 food

banks that help fight hunger in the

United States. Feeding America Eastern Wisconsin

feeds 330,000 people each year, including 105,000

children and nearly 33,000 seniors. The food bank

distributes more than 12 million pounds of food

and grocery products an-

nually through 1,100 partner

hunger relief agencies that

serve the hungry directly.

Each year, SC Johnson

makes large product dona-

tions to Feeding America Eastern Wisconsin, for

example contributing more than 60,000 pounds of

products such as Ziploc® brand sandwich bags in 2009. In addition, since 1996 the SC Johnson Fund

has provided $60,000 in financial contributions.

2010 PuBLIC REPORT 9INvESTING IN PEOPLE, INvESTING FOR THE PLANET

Habitat for Humanity International

Habitat for Humanity works

to provide housing that is

decent, safe and affordable

to low-income families around the world. Local

Habitat affiliates work to select homeowners,

organize volunteers and coordinate house building.

Homeowners are selected based on need, ability

to pay a mortgage and willing-

ness to help participate in the

homebuilding process. Home-

owners and volunteers build

under trained supervision.

Since its founding in 1976,

Habitat has built, rehabilitated,

repaired or improved more than

350,000 houses worldwide,

providing shelter for more than 1.75 million people

in 3,000 communities.

Since 1989, the SC Johnson Fund has provided

$255,000 in funding to Racine Habitat for Humanity

to support the construction of new homes.

Conservation International

Conservation International is an

international organization that

works in more than 40 countries

to protect the earth’s resources.

CI is committed to helping societies adopt a

more sustainable approach to development — by

considering and valuing nature. CI has many focus

areas, in cluding watershed and forest protection,

biodiversity conservation, carbon sequestration

and ecotourism.

CI’s mission includes

empowering societies

to responsibly and sus-

tainably care for nature.

As part of this mission,

over the next three years Conservation Interna-

tional plans to support the development of a green

economy in Rwanda. CI hopes the economy will

serve as a regional model for integrating ecosys-

tem services into development and conservation.

The SC Johnson Fund, in collaboration with

SC Johnson corporate giving, provided $725,000

in support to Conservation International this

past year, of which $100,000 will support their

Rwandan green development program. The Johnson Foundation at Wingspread

The Johnson Foundation at Wing-

spread is dedicated to serving as

a catalyst for innovative public

and private solutions. It operates the Wingspread

Conference Center and hosts leading thinkers,

conferences, workshops and seminars in an effort

to have a great impact on environmental,

community and other

public policy issues.

An entirely separate institu-

tion from the SC Johnson

Fund and SC Johnson, the

Johnson Foundation seeks

to provide solutions on a regional and global basis

in the areas of healthy environments and healthy

local communities. Most recently, the Johnson

Foundation announced the 2010 Freshwater

Summit, a new initiative to focus attention on the

emerging freshwater crisis in the United States,

including pollution, water shortages, water infra-

structure and water quality.

In 2009, the SC Johnson Fund provided 3,000,000

in funding to the Johnson Foundation.

Racine Art Museum

The Racine Art Museum (RAM)

opened in 2003 as an outgrowth of

the 69 year-old Charles A. Wustum Museum of

Fine Arts (Wustum). RAM operates both locations,

using Wustum as an education center and RAM

as home to internationally recognized exhibitions

of contemporary crafts. The

museums are a popular destina-

tion for the 11 million residents of

the Chicago-Milwaukee corridor

and across the United States.

In addition to six exhibition

galleries, RAM has a world-class

museum store and an art library.

Both campuses offer a myriad of

free community outreach programs and Wustum

offers one of the largest studio arts programs of

any Wisconsin museum.

In the past 10 years, the SC Johnson Fund provided

more than $5,700,000 to RAM’s building fund,

endowment, exhibitions and education programs.

Zaitz Photography

10 STRENGTHENING COMMUNITIES WWW.SCJOHNSON.COM

NEW THIS YEAR > Worked with BoP partners to further advance our joint Kenya initiative.

> Progressed in our efforts to help Rwanda pyrethrum farmers increase their supply.

> Continued contributing time and money to make communities better.

Advancing Social Progress and Public Health

Strengthening Communities

Follow links to more information wherever you see this symbol.

We’re working to drive

positive social change,

help consumers and

improve quality of life.

Chairman and CEO Fisk Johnson recently visited Rwanda for an up-close look at the company’s program assisting pyrethrum farmers, and to meet some of the people it’s helping.

2010 PUBLIC REPORT 11INvESTING IN PEOPLE, INvESTING FOR THE PLANET

Behind This Flower is a Powerful Story In June 2009, SC Johnson kicked off a partnership in Rwanda that illustrates sustainable

development at its best.

By helping farmers enhance their ability to supply

higher-quality pyrethrum (py) — a natural insecticide

extract of the chrysanthemum flower — the effort

helps increase farmers’ income while increasing the

supply for SC Johnson and other purchasers.

What We’re Doing SC Johnson is working in active partnership with the

U.S. Agency for International Development and Texas

A&M University’s Borlaug Institute to support farmer

organization and more effective agricultural practices.

As an example, the farmers are being assisted in estab-

lishing a cooperative to promote best practices for py

collection and transportation. The two largest groups

of 4,000 farming families are reorganizing into smaller

groups of 30 to 50 growers, to allow for more effective

and better management. With these smaller groups,

the goal is to improve and accelerate services to farm-

ers and to more quickly disseminate best practices. At

the same time, the reorganization removes middlemen

that were siphoning money from the py value chain,

and instead keeps the profits with the farmers.

Additionally, agronomic techniques are being improved

to raise the income farmers can get from the same

amount of land planted with py. Also, the effort is

bringing global positioning system (GPS) and geo-

graphic information system (GIS) technology to

develop a crop management system that will help

ensure long-term benefits to the farmers and the

growth of Rwanda’s pyrethrum industry.

As part of the effort, we’re also providing health

information through the co-ops to the farmers, to

help their families stay healthy.

What’s at Stake The goal is to increase production each year through

the end of 2011, while also increasing the py content

of the yield. Despite various challenges so far, the

2009 harvest of dried py flowers delivered a yield

with a 33 percent higher py content than in 2008.

Also important, farmers in the region are engaging in

the project and the acreage being planted is showing

signs of increasing.

Obviously these are good results in terms of increasing

the sustainable supply of py for key purchasers like

SC Johnson. But also important, as farmers see

increased returns on their business, we’re hopeful it

will lead to important benefits for their families, such

as more reliable or higher incomes that can enable

improved nutrition, health and education. What is Py? Pyrethrum, or “py,” is a natural, fast-acting insecticide extracted from the dried flower heads of chrysanthemums. Although it can be produced synthetically, py is known for the fact that it doesn’t persist as long in the environment as synthetic py. SC Johnson uses it in some of its pest control products, such as its Raid® and Baygon® brand insecticides sold around the world.

SC Johnson has purchased py from East Africa for more than 40 years. We worked with the Pyrethrum Board of Kenya to help build capacity, stabilize the supply and bring more reliable income to farmers there. We also partnered with the NGO KickStart to bring Kenya py farmers a manual water pump for irrigating crops with groundwater. We began exploring opportunities with Rwanda py farmers in 2007.

From BoP Pilot to Business-As-Usual On this page and the following, SC Johnson features investment projects with base of the pyramid (BoP) entrepreneurs and farmers. But we also have BoP proj- ects that have evolved into profitable business-as-usual. In Nigeria, we launched a motorcycle sales pilot in 2006 to reach more traditional, lower-income distribution outlets. It became a profitable success for all involved. Similarly, a Ghana effort using push bikes designed for carrying cargo now provides a solid source of income for the bicycle distributors as well as for SC Johnson. By becoming strong enough to be self-sustainable, these efforts prove out the promise of BoP investments.

12 STRENGTHENING COMMUNITIES WWW.SCJOHNSON.COM

Progress from Partnership In 2006, with partner Carolina for Kibera, SC Johnson co-launched Community Cleaning

Services (CCS) in Nairobi, Kenya, offering very low-cost cleaning services to families living

at the base of the economic pyramid.

Since then, CCS has

achieved a solid business

model cleaning public

and private shared toilet

facilities. Most toilets in

Nairobi’s poor neighbor-

hoods are shared by

multiple households

and are poorly maintained. Neighbors now can hire

CCS to clean their toilet and share the cost, meaning

regularly maintained, more sanitary toilets for about

17 U.S. cents per

household. Fourteen

CCS teams currently

service around 225

facilities per week.

Collaborating for Continuous Improvement Focusing on continuous improvement, since 2009,

CCS and a team from SC Johnson have been working

together, exploring ways to enhance the toilet cleaning

processes, reduce costs and drive sales growth.

A collaborative approach was key, as was the addi-

tion of a team member with R&D expertise. Through

hands-on research, process analysis and iterative

prototyping, the teams were able to identify ways

to increase cleaner productivity by 60 percent and

cut cleaning time by 35 percent. In addition, they

collectively devised a solution to CCS’s top customer

issue: odor control.

A Fresh Solution Odor is an issue in any toilet area, but especially in

bathrooms shared by multiple households. The CCS

team knew this, and that clients would pay more for

toilet cleaning if odor control was included. But a chal-

lenge was that air fresheners tended to disappear or

be taken from the bathrooms shortly after placement.

Together, we found an effective, low-cost solution:

an SC Johnson toilet gel product distributed under

the Duck® and Scrubbing Bubbles® brand names. Designed to be stamped out of a dispenser in devel-

oped market-type toilet bowls for cleaning and odor

control, the gel turned out to have great potential for

the developing market, too.

A dollop of gel in the toilet

area freshens the air for

seven to 10 days, and in a

form that stays put. In addi-

tion, it allows SC Johnson to

repurpose excess gel from

the routine manufacturing

process. By providing a barrel

of the gel to CCS instead of

disposing of it, we cut material

handling and disposal fees.

The gel is then distributed by

the pound to the entrepre-

neurs, who transfer it to pastry

bags that are reused repeat-

edly for individual applications. The end result is more

satisfied clients, higher profits for the cleaning teams,

and less packaging and waste.

More Opportunities on the Horizon To continue leveraging the momentum of the CCS

effort, the SC Johnson team checks in regularly and is

helping explore other opportunities. Up-and-coming

efforts include quantifying the sanitation impact of

CCS’s service to prove the value of the cleaning, and

introducing a graphical, step-by-step training manual

to help train new cleaners.

In addition, learnings from this effort will be used in

other BoP initiatives moving forward. For example,

SC Johnson is undertaking an initiative in Ghana to

create a sustainable business model related to malaria

prevention. Read more about it on page 15.

Click here to jump to the back of this book and find out more.

2010 PUBLIC REPORT 13INvESTING IN PEOPLE, INvESTING FOR THE PLANET

Q You were the first SC Johnson team member with an R&D background to partner with the CCS team. How do you think your perspective was different?

As a designer, my first instinct is to approach problems

from a user-centered point of view. To do that, you

really need to walk in the user’s shoes and that meant

living and working with the cleaning teams as well as

spending a lot of time interviewing their clients.

I also interviewed the cleaning teams to understand

what they’ve learned along the way and how they’ve

improved processes. For example, one team learned

odor control was an issue. That eventually led to the

new odor control offering. Experience with iterative

prototyping helped

too, because we were

translating needs into

tangible products or

processes that we

could test and modify

as necessary.

Jeremy Knopow is a Senior Research Engineer and Industrial Designer at SC Johnson. He most recently visited Kenya in January 2010 and returns this summer.

Expert Q&A

Measuring Success SC Johnson recently provided the Community Cleaning Services team trainer with a “germ meter” to measure toilet-area microbiological levels. The meter is for quality control and to help show potential clients the sanitation benefits of toilet cleaning. A swab test before and after cleaning allows CCS to measure microbial improvement ... and demonstrate some impressive results.

Germ Level Comparison

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*Germ level is measured by the amount of organic material that remains on the surface. RLUs are Relative Light Units. A chemical on the germ monitor swab causes organic materials to glow and the monitor reads the Relative Light Units, or the amount of light emitted.

Turning Problems into Opportunities Here’s an example of a process opportunity that the CCS and SC Johnson teams co-innovated.

Problem When cleaning walls, water and dish soap would be splashed onto the wall by hand. Water would run down the wall and drain away, requiring even more water to complete the cleaning task.

Solutions Teams now mix the water and cleaner into a foam by pouring them back and forth between two buckets. The foam stays on the wall for a thorough scrubbing, and requires about half as much water and cleaner. The team has since identified the potential to switch from dish soap to SC Johnson’s Mr. Muscle® brand low-cost kitchen cleaner. It cleans well but without as many suds as dish soap, meaning less rinsing is required.

Results By using less water, the cleaners can make fewer trips to the water source, which is often distant. This increases the number of sites that can be cleaned in a day and reduces costs since most water sources charge a fee. Water use is down 57 percent and local team prof- its can more than double, particularly during frequent droughts and soaring water costs. Plus, there’s a benefit for SC Johnson since the more successful cleaner is an SC Johnson product.

There’s more! Click here to jump to the back of this book and read the entire interview, including Jeremy’s perspective on how this initiative has affected the lives of the entrepreneurs.

Uncovering Insights, Creating Solutions A Q&A with SC Johnson’s Jeremy Knopow

G E

R M

L E

v E

L (

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14 STRENGTHENING COMMUNITIES WWW.SCJOHNSON.COM

Acting in Our Communities As 2009 brought another year of challenges for communities around the world, SC Johnson

once again sought ways to lend a hand to those in need. We believe unwavering support is

fundamental to being a responsible and resilient member of our communities around the globe.

Support in Many Forms Along with global objectives for philanthropy and

social progress, SC Johnson also has formal Com-

munity Leadership Guidelines in place to help drive

accountability at the local level. Each SC Johnson

operation has these objectives:

• Demonstrate senior management leadership

in the community by having the General

Manager hold at least one board-level

membership with a major local community

non-profit organization.

• Give to local charities at a target of 2 percent

of pre-tax profits.

• Promote and coordinate at least one significant

employee volunteer effort in the community

each year.

Our Commitment in Action In addition, many SC Johnson employees share their

time with worthy organizations such as Toys for Tots,

the Salvation Army and the Racine Zoo, community

food banks and other service organizations.

Plus, we’re proud that our employees give gener ously

to their communities. In 2009, our United Way cam-

paign in the United States raised more than $855,253

in employee contributions. With a match by the

SC Johnson Fund, Inc., we provided community

support of more than $1.7 million.

Measuring Our Progress We continue to make progress each year on our community leadership and philanthropy goals. Here’s a look at our accomplishments for fiscal year 2008/2009.

General Manager Participation On Community Boards Fiscal Year 2008/2009.

Worldwide Corporate Philanthropic Contributions Rolling 10-year cumulative contributions (includes SC Johnson Fund, Inc.) in U.S. dollars.

SC Johnson Operations Organizing a Major Employee Volunteer Event Fiscal Year 2008/2009.

0

10

20

30

40

50

60

70

80

90

100

Developed Markets

Developing Markets

Total

86% 88% 87%

0

10

20

30

40

50

60

70

80

90

100

Developed Markets

Developing Markets

Total

71% 76% 74%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 100,000,000

110,000,000

120,000,000

130,000,000

140,000,000

150,000,000

160,000,000

170,000,000

180,000,000

190,000,000

2010 PUBLIC REPORT 15INvESTING IN PEOPLE, INvESTING FOR THE PLANET

Making a Difference for People Whether supporting schools, reaching out to those affected by crises or promoting employee

volunteerism, SC Johnson works to make our communities better because we are there. Here

are a few examples.

Helping Haiti Within days of the devastating earthquake that crip-

pled Haiti, the SC Johnson Fund, Inc. donated $20,000

to the American Red Cross’s Haitian relief efforts and

committed to match SC Johnson employee contribu-

tions up to $15,000 over the next month.

Due to overwhelming participation by employees, the

limit was soon increased to $20,000. In addition, many

subsidiaries around the world contributed to Haiti

relief in a variety of ways. The combined company-

wide efforts brought in more than $160,000 in funds

to help Haiti recover, a true testament to the values

of the people of SC Johnson.

Supporting Breast Cancer Awareness In September 2009, SC Johnson joined retailer

Kroger’s efforts to battle breast cancer during

its “Giving Hope a Hand” campaign. Winnie Marquart,

sister of Chairman and CEO Fisk Johnson, played

a key role by sharing her personal story as a breast

cancer survivor to help educate

and inspire.

Working with Kroger, SC Johnson

pledged $280,000 to support non-

profit organizations that address the

cause. The campaign was focused

on finding a breast cancer cure and

helping women and their families

find the treatment and resources

they need to face their illness head on.

We also developed specially designed displays

and packaging that featured Winnie’s

breast cancer survivor story and

offered shoppers pamphlets from

the American Cancer Society.

In addition, SC Johnson arranged

for a specially equipped medical van to provide

free mammograms at Kroger stores in underserved

communities around Cincinnati, Ohio, as well as at

an event at Kroger’s headquarters.

Offering Support across the World Here are just a few examples of how SC Johnson operations supported their communities over the past year.

SC Johnson Canada launched a Community Enrichment Team to connect employees with volunteer oppor tunities. For example, employees have already helped complete three Habitat for Humanity houses.

SC Johnson Brazil contributed to Associação Caatinga, which aims to preserve plant and animal diversity in the Caatinga ecosystem in northeast Brazil.

SC Johnson Argentina organized a volunteerism program for employees and retirees. It promotes 11 volunteer opportunities across education, social and environmental needs.

SC Johnson Spain helped with the reforestation of local fields, with em- ployees planting 200 trees and shrubs and financial support for a year of watering and care.

SC Johnson Home Hygiene Products in Indonesia con tributed $120,000 to UNICEF to help build clinics in a village in Java. The clinics teach new mothers about early child development and care.

SC Johnson South Africa continued its tradition of giving financial support to child care programs at Leutlwetse preschool.

SC Johnson Japan made contributions to 12 institutions that support fatherless families, and also to Kanagawa Prefectural Children’s Hospital for medical devices and equipment.

SC Johnson Italy contributed to 10 organizations chosen by employees, pro viding help to efforts including medical research, support of the dis- abled and defense of children’s rights.

SC Johnson Mexico provided financial support to 18 foster homes for young girls in need, benefitting 2,061 girls.

16 PROTECTING FAMILIES WWW.SCJOHNSON.COM

NEW THIS YEAR > Launched a study with the Bill & Melinda Gates Foundation to help determine product-based solutions to combat malaria, as well as a Gates/Center for Sustainable Global Enterprise partnership to create a sustainable business model that addresses malaria.

> Continued educating about insect-borne diseases across many countries.

Helping Prevent Insect-Borne Diseases

Protecting Families

Follow links to more information wherever you see this symbol.

We target a key

public health issue with

effective pest control

products and education

about avoiding insect-

borne diseases.

2010 PUBLIC REPORT 17INvESTING IN PEOPLE, INvESTING FOR THE PLANET

Investing in Education and Prevention According to world health authorities, malaria kills more than a million people every year,

and there are as many as 50 million dengue infections worldwide annually.

Yet these diseases are preventable simply by pro- tecting families from the insects that can transmit the infections. As the leading marketer of household insect control products worldwide, we’re working every day to make products that help protect people, and to

educate about how to avoid insect-borne illnesses.

Along with our ongoing efforts in this area, in 2010

SC Johnson announced a collaboration with the Bill & Melinda Gates Foundation (BMGF) to combat malaria. Together, we are supporting two research programs designed to study and advance the use of consumer products in the fight against the spread of the disease.

One Collaboration, Two Efforts One effort is a scientific research study by a consortium of Indonesian research institutions led by Hasanuddin University, under the guidance of Dr. Din Syafruddin. The study aims to demonstrate the effects of consumer products in repelling malaria-infected mosquitoes. Funding is coming from BMGF, with product resources and in-kind personnel support from SC Johnson. This

effort is expected to last at least four years.

The second effort in collaboration with BMGF is

being co-conducted with Cornell University’s Center

for Sustainable Global Enterprise. The project, led by Dr. Mark Milstein and Dr. Erik Simanis (below) as well as SC Johnson’s base of the pyramid business development team and SC Johnson Ghana, will work to develop a consumer-level, market-based solution to malaria infection among at-risk populations at the base of the economic pyramid. The ultimate goal is to create a business model that will address malaria infection while creating value for all participants.

Q You’ve been involved in the Base of the Pyramid (BoP) movement since its start. What have you learned?

The BoP has evolved considerably. When the idea was first proposed that there were business opportunities in serving the low-income sector of billions of people, companies saw it as an opportunity both to help peo- ple and tap new markets quickly. There were a couple of success stories — like Unilever’s sachet-packaged detergent in India — that really helped boost interest.

So a number of global companies jumped in and start- ed researching opportunities. Many came up with great projects with a lot of market research behind them, like helping families clean their drinking water. But when the projects were launched, most not only failed to gener- ate any profit, but there was little consumer interest. As a consequence, a lot of BoP ventures were closed down or shifted into philanthropic efforts.

The key learning was that those quick wins like Unilever’s are few and far between. That only happens when there is an existing consumer market where you can get on the ground, do good market research, and turn out a better product. In most cases, like with clean water, there isn’t an existing market. The products just don’t register with consumers — people aren’t accustomed to valuing their benefits, nor integrating them into their routines and lifestyles. Doing market creation requires a different strategy and innovation process than does market entry.

Dr. Erik Simanis is Managing Director of Market Creation Strategies at the Center for Sustainable Global Enterprise at Cornell University.

Co-Creating New Businesses A Q&A with the Center for Sustainable Global Enterprise’s Erik Simanis

There's more! Click here to jump to the back of this book and read the entire interview, including how BoP efforts are evolving.

In Sumba, Indonesia, the study site, families live in huts that mos- quitoes can easily penetrate, with saline lakes nearby that offer a breeding ground for mosquitoes. Inset, a typical sleeping area.

Expert Q&A

18 PROTECTING FAMILIES WWW.SCJOHNSON.COM

Creating Prevention Awareness Across Markets To achieve an ongoing, sustainable positive impact, successful efforts must be good for people

and for business. With that in mind, we work to educate families about avoiding insect-borne

diseases and show how our brands can make a difference. Here are a few examples.

Indonesia Dengue Campaign Helps Communities be Proactive, Involved This year, Johnson Home Hygiene Products (JHHP)

in Indonesia is conducting a multi-pronged dengue

campaign to create awareness and educate consum-

ers, while strengthening our Baygon® brand’s position as the best solution to fight the insect-borne disease.

In coordination with local health authorities’ theme of

“starting with yourself to proactively prevent dengue,”

JHHP sponsored a kick-off educa-

tion event, complete with a giant

mosquito mascot. Training target-

ing 5,000 people from 40 areas of

Jakarta, Bandung, Semarang, Jogjakarta and Surabaya

focused on prevention, first aid for dengue infections

and Baygon® product information.

Additionally, a portion of Baygon® sales was donated to dengue education and prevention programs, and in

partnership with a local NGO we supported fogging in

areas where high dengue incidence was reported.

Educating on Dengue and Malaria in India For the third year in a row, in 2009 our ALLOUT® brand in India led a dengue protection drive in major metropolitan areas. The

program featured free fumigation, in-store activity and an ALLOUT® truck conducting contests and quizzes about disease protection.

In addition, since July 2008 we have been working with the NGO vHAI to expand malaria education and support in the Guwahati area. The effort has included health events, mobile clinics, free mosquito nets and the distribution of educational materials.

Drawing Attention to an Important Health Issue In its sixth year, SC Johnson Thailand’s anti-dengue campaign continued to drive awareness of

the disease with on-the-street events and a road show to workplaces, as well as a $55,000 product contribu- tion to the Thai Red Cross Society to provide repellents to people living in rural areas.

Another Year Making a Difference in the Philippines

Marking its twelfth consecutive year,

SC Johnson Philippines’ Iwas Dengue

campaign continued to create awareness

of the dangers of dengue, reaching more

than a million households. The Baygon®- OFF!® Iwas Dengue advocacy campaign aims to edu- cate about the importance of proper household and

community care in the fight against dengue.

In partnership with ABS-CBN Foundation, this year

an anti-dengue medical mission was conducted in

14 identified dengue hotspots nationwide. Every pur-

chase of Baygon® or OFF!® products helped fund the medical mission in the identified dengue hotspots.

The medical mission included lectures on dengue

prevention, children’s activities, as well as distribution

of medicines and samples. In addition, the campaign

included the three pillars that have become fundamen-

tal to Iwas Dengue: a hotline to request free spraying

in areas with outbreaks, house-to-house spraying

teams distributing leaflets and product samples, and

educational caravans about dengue prevention.

Fighting Malaria with UNICEF For the third consecutive year, in 2010 SC Johnson

France’s Baygon® brand and UNICEF France teamed up to fight malaria as part of UNICEF’s Central African

Republic program targeting malaria and other health

issues for mothers and young children. From March

through August, SC Johnson France is donating a

portion of every Baygon® brand sale to the effort.

In 2009, contributions from the Baygon® partnership surpassed $160,000, and helped provide more than

225,000 children with vaccines, distribute mosquito

bed nets and facilitate other health support.

The 2010 program has included

a number of interactive and

social media components such

as the www.baygon-unicef.com

web site and Facebook. Fans

actively participated in the Mosaic Against Malaria,

which aggregated users’ photos to create a unique

symbol of the collaborative fight against malaria.

2010 PUBLIC REPORT 19INvESTING IN PEOPLE, INvESTING FOR THE PLANET

Making Information More Accessible This past year, SC Johnson got underway with its first commitment as part of involvement

in the Clinton Global Initiative — an IEC intervention.

Partnering with the Global Business Coalition on

HIV/AIDS, TB and Malaria (GBC), we created an

online repository of training materials and information

for NGOs, governments, businesses and community

health groups working on anti-malaria educational

initiatives.

The effort draws from learnings gained in SC Johnson’s

partnership in the Healthy Children, Healthy Homes™

program, a collaborative effort between SC Johnson,

South Africa’s National Department of Health, Medical

Research Council and RTI International. This community-

based malaria education program has now reached

more than a million South Africans, and has been

expanded into Mozambique and Ghana.

Part of SC Johnson’s role in that program was to

help develop information, education and communi-

cation (IEC) materials. Now, we’ve brought the

learnings gained there to the global level, with a new

Anti-Malaria IEC program that is available online at

GBC’s web site.

This IEC intervention

takes a train-the-trainer

approach to distribut-

ing key public health

messages around

malaria prevention and

treatment. Training

materials in English,

Portuguese, French and

Kiswahili explain how

to effectively use large

flipchart ma terials that

avoid language and

reading barriers by communicating through pictures,

such as those shown above. Access to "take-home"

educational materials will also be provided.

We’re hopeful that this model of providing resources

to self-motivated organizations and individuals will help

broaden the reach of this important educational effort.

Q As an organization, what public health issues worry you most?

The issues of HIV/AIDS, TB and malaria continue

to kill thousands every day and limit the potential

of economies throughout the developing world.

There are 33 million people living with HIV/AIDS

globally; every 30 seconds a child dies from

malaria; and last year, TB killed one person every

20 seconds. The effects of these epidemics are

devastating and business has a critical role to play

in ending them.

Q How can GBC corporate members help? Why is such private/public/NGO collaboration important?

Business is crucial in helping to turn the

tide against HIV/AIDS, TB and malaria,

and it will only be through collaboration

and coordination, that we will fight

these diseases faster. Companies

contribute in different ways: leveraging their core

competencies, contributing to advocacy efforts,

developing robust workplace policies and programs,

and providing their skills and assets to fill critical gaps.

Neeta Bhandari is Senior Manager, Membership & Advisory Services, for the Global Business Coalition on HIV/AIDS, TB and Malaria.

Products that Protect At SC Johnson, we work every day to make products that protect families while meeting different needs.

Protection While Sleeping • Electric mats offer one night's protection

using a treated mat inserted in a heating device.

• Liquid electric area repellents offer many nights of continuous mosquito protection.

• Mosquito coils are the most affordable area repellent and last up to 10 hours.

Protection On the Go • New OFF® Clip-On™ is an innovative personal

repellent that uses a fan to circulate protection around a person for up to 12 hours.

There’s more! Click here to jump to the back of this book and read the entire interview, including Neeta’s perspective on future health issues.

Advocating and Partnering for Results A Q&A with the Global Business Coalition on HIV/AIDS, TB

and Malaria’s Neeta Bhandari

Expert Q&A

20 OFFERING GREAT WORKPLACES WWW.SCJOHNSON.COM

NEW THIS YEAR > Recognized for the 10th year among FORTUNE magazine’s 100 Best Companies to Work for in America, along with being recognized in numerous other countries.

> Opened Fortaleza Hall, a new building at our headquarters that symbolizes our unique history of innovation, creativity and adventure.

Committed to SC Johnson Principles Including Respect and Inclusion

Offering Great Workplaces

Follow links to more information wherever you see this symbol.

As a family company,

we believe in doing

what’s right for the

people who make this

company a success.

2010 PUBLIC REPORT 21INvESTING IN PEOPLE, INvESTING FOR THE PLANET

A Commitment to People In good economic times and bad, from Buenos Aires to Budapest to Bangkok, SC Johnson

believes in doing what’s right for the families who use our products in their homes, and the

people of SC Johnson who create them.

We believe this starts with a commitment to the

people of SC Johnson — to ensuring a culture of

fairness, respect and innovation; to fostering inclusion

so that all opinions are valued and everyone can do

their best work; and to maintaining global operational

standards designed to ensure the safety and well-

being of SC Johnson people worldwide.

That’s why along with our This We Believe statement of corporate values (see page 2), we have formally

pursued diversity efforts for nearly 20 years and have

had a global Safety, Health and Environment commit-

ment for decades (see page 21). We have clear and

well-communicated policies on topics from safety

to legal compliance to work hours.

Understanding and Engaging We also conduct annual global employee opinion

surveys to maintain a pulse on topics including

integrity and trust, development and training, and

work/life balance. In 2009, once again our overall

Employee Engagement score measured strong at

84 percent, which we see as a key to winning in

today’s challenging business environment.

We believe this engagement comes from our commit-

ment to people both at work, and outside of work, too.

Starting with paid vacations in 1900, we’ve introduced

numerous helpful benefits such as award-winning child

care, concierge services and more.

Q It’s been nearly 20 years since SC Johnson established its Office of Diversity. What key milestones stand out?

Looking back, I’d say SC Johnson has had three

“a-ha” moments when thinking about diversity.

The first was the realization that diversity was a

business imperative versus just an HR initiative.

We rely on selling products to consumers and

making a difference in their lives and in their family’s

lives. It’s important for us to focus on how diversity

connects with the business and to our consumers

and customers. We are a company

that not only makes products for

consumers, but a company that

cares about the consumers we make

products for.

Maria L. Campbell is Director of Diversity for SC Johnson. You can find out more about our diversity commitment at www.scjohnson.com/diversity

Dedicated to Diversity and Inclusion A Q&A with SC Johnson’s Maria L. Campbell

There’s more! Click here to jump to the back of this book and read the entire interview, including the other two “a-ha” moments Maria shared.

Expert Q&A

Employer Milestones Recognition since July 2009

“Great Place to Work” Recognition

• SCJ Argentina: Recognized for the 8th time.

• SCJ Canada: Recognized for the 5th time.

• SCJ Chile: Recognized for the 5th time.

• SCJ Germany: Recognized for the 7th time.

• SCJ Italy: Recognized for the 8th time.

• SCJ Latin America: Recognized as a top 100 Company in Latin America.

• SCJ Mexico: Recognized for the 9th time.

• SCJ Poland: Recognized for the first time.

• SCJ United States: Recognized for the 10th time.

• SCJ venezuela: Recognized for the 5th time.

Other Employer Recognition

• Among Diversity Elite 60 list of Hispanic Business magazine.

• An AARP Best Employer for Workers Over 50 for the 4th year.

• Perfect score on Human Rights Campaign Corporate Equity Index.

• 21st year among Working Mother magazine’s 100 Best Company for Working Mothers.

• Number 41 on DiversityInc.com Top 50 Companies for Diversity® list, and 7th among the top 10 companies for people with disabilities.

22 OFFERING GREAT WORKPLACES WWW.SCJOHNSON.COM

Engaging and Inspiring In January 2010, SC Johnson opened its first major new building on the company’s

international headquarters campus since the 1950s. And what a building it is.

Fortaleza Hall is a testament to SC Johnson’s unique

history of innovation, creativity and adventure. It

honors the late Sam Johnson, the fourth-generation

leader of the company, and his tremendous leadership

in our innovation, geographic expansion and environ-

mental legacy.

Designed by world-renowned architecture firm

Foster + Partners, Fortaleza Hall is a fitting partner

to the innovative designs that already exist at our

headquarters campus, including the Frank Lloyd

Wright-designed Administration Building and

Research Tower. Fortaleza Hall was also an investment

in the local economy, with 21 local companies hired

for the project.

Remembering a Timeless Trip In the middle of Fortaleza Hall soars Sam Johnson’s

Carnaúba airplane, an enduring symbol of family, ad-

venture and leadership

for the company. The

twin-engine S-38 am-

phibious plane is a replica

of the S-38 flown by H.F.

Johnson, Jr. in 1935 on

an expedition to Brazil to

find a sustainable source

of wax for the company.

In 1998, Sam and his sons, Fisk and Curt, recreated

that historic expedition, in a trip that rekindled the

company’s spirit of adventure. As Chairman and CEO

Fisk Johnson noted upon the opening of Fortaleza Hall,

“This plane is an enduring symbol of courage, of adven-

ture and preservation. It is also a reminder that ventur-

ing into the unknown is often worth the risk.”

Offering Inspiration and Community Fortaleza Hall includes an array of features designed

to energize and inspire, such as a vertical garden with

79 species of Central and South American plants, a

polyconic mosaic map that uses four different types

of end-grain wood that is Forest Stewardship Council-

certified, and a sound-

scape that brings to life

the flora, fauna and street

sounds of Fortaleza, Brazil.

Importantly, the building

also acts as a gathering

place for the people of

SC Johnson, housing em-

ployee services including

the company cafeteria, concierge service, bank, fitness

center, coffee shop and Legacy Gallery, a space where

visitors and employees alike can learn about the prin-

ciples and spirit that guide our company.

Respecting the Environment The building was constructed under the U.S.

Green Building Council’s Leadership in Energy and

Environmental Design (LEED) certification guidelines.

For example, it uses materials such as low-VOC paints

and flooring with recycled materials. It also features

energy-efficient lighting and water-efficient fixtures.

In addition, Fortaleza Hall includes unique sustainable

features such as a customized air distribution system

that requires less air to be heated or cooled, and a cis-

tern that captures rainwater from the building’s drainage

system and reuses it for campus landscape watering.

The Frank Lloyd Wright Library and Reading Room In the northeast corner of Fortaleza Hall, this unique space pays tribute to the architect who has been inspiring employees and visitors at SC Johnson’s headquarters for more than 70 years. The Frank Lloyd Wright Library and Reading Room houses hundreds of Wright’s sketches, notes and corre- spondence — some being made public for the first time — thanks to the generosity of the Frank Lloyd Wright Foundation. The library opened with more than 300 books about Wright and his career, 250 original draw- ings and blueprints, 125 photos, 140 letters and more.

2010 PUBLIC REPORT 23INvESTING IN PEOPLE, INvESTING FOR THE PLANET

Upholding Standards, Ensuring Safety From guidelines and training to driving employee accountability, SC Johnson is working

to ensure Safety, Health, Environment and Quality standards are met around the globe.

Protecting the health, safety and well-being of our

people is a top priority for SC Johnson. We have global

standards for our manufacturing facilities that help

ensure consistent and equivalent working conditions

for people worldwide.

In addition to meeting SC Johnson standards, compli-

ance with local laws and regulations is mandatory. And

when company guidelines are more protective than

local regulations, the SC Johnson requirements must

be met. SC Johnson’s corporate Safety, Health, Envi-

ronment (SHE) and Quality team, supported by exter-

nal partners and employees around the world, delivers

policies, guidelines, training,

technical support and audit-

ing, to ensure this happens.

But we’re aiming to do

even more, by further driving

understanding that safety

is everyone’s responsibility.

"Safety is the point of entry

for every activity at SC Johnson, and it ought to be

the first point on everyone's priority list, too," says

David Kaissling, Vice President - Global Manufacturing.

“Over the years, we’ve had great results from the focus

on compliance, audits and improvements. But we

want to do even more. Ninety-five percent of injuries

result from workplace behaviors. Our goal is to further

increase awareness among employees and get every-

one involved in the safety program, to continue driving

down our incident rates to industry-leading levels.”

Tracking Needs and Improvements As we pursue continuous improvement, auditing and

educating remain key. Each SC Johnson factory is

audited at least once every five years, with SC Johnson

and external auditors reviewing a total of 74 criteria

in nine key areas including employee safety, industrial

hygiene, air/water and waste management, fire protec-

tion, emergency response planning, and more.

Following an audit, an SC Johnson operation has 60

days to respond in writing with a description of actions

to be taken, individual responsibilities and a timeline

for completion. Follow-up reports are due every three

months to the worldwide SHE team. All actions must

be completed in 12 months unless capital spending is

planned. Four times a year, the SHE team presents out-

standing issues and resolution plans to the company’s

highest management team to ensure that progress

continues to be made.

Q How do you keep up with local SHE regulations to ensure SC Johnson’s standards are aligned?

We use independent third-party consultants to set up

and execute each audit, and require them to be up-to-

date with current requirements and regulations. We also

use an outside party to update our protocol for SHE

requirements in that country. Our consultants also work

with in-country SHE professionals to provide expertise

in local laws.

Using third-party consultants along with our internal

SC Johnson auditors has been fundamental to our

audits since 1993. We do this to get

objective opinions of our plants, to

make us aware of SHE auditing best

practices we can adopt to keep our

processes up-to-date, and to get

consistent multi-year audit opinions that are tied

to valid and current protocols for each country.

Franklyn Ericson is Director of Worldwide Safety, Health and Environmental Operations for SC Johnson.

There’s more! Click here to jump to the back of this book and read the entire interview, including thoughts on best practices.

Investing in Safety Makes Sense A Q&A with SC Johnson’s Franklyn Ericson

YEAR ENDINGP E

R 2

0 0

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89 08 0991 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 0

5

10

15

20

25

30

35

40

Days Lost Medical Incidents Lost Time Incident Rate

Worldwide Safety Performance Record

Expert Q&A

TURN THE PAGE TO SEE OUR ALTERNATE COvER AND READ HOW SC JOHNSON IS INvESTING FOR THE PLANET.

They’re Two sides of The same susTainabiliTy sTraTegy

investing for the Planet investing in People,

2010 Public rePorT

About This Book There’s more than one facet to sustainable business, and at SC Johnson, we believe in taking a holistic approach. That's why the printed edition of this Public Report had two covers and two ways to get to know SC Johnson. For this online edition, we've compiled the two sections into one handy PDF. Interested in our environmental leadership? Start reading here. Interested in social progress and pub- lic health? Turn to the first half of the book and our alternate cover, on page 1 of this online PDF. Either way, the whole book is about how SC Johnson is making the world better.

What’s in This Half? SC Johnson at a Glance — a look at our business

and recent environmental milestones. PAGE 28

Improving Our Products — an update on how we’re

making better products with better ingredients and

better information. PAGE 30

Reducing Resource Use — our continuing efforts

to reduce greenhouse gas emissions and minimize

energy consumption. PAGE 36

2010 Metrics Quick Reference — at SC Johnson,

we’re committed to setting sustainable development

goals, tracking our progress and reporting our results.

This is our 19th year of public reporting. Here's a

quick summary of our results. PAGE 40

Questions about this report should be directed to Kelly M. Semrau, Vice President — Global Public Affairs and Communication, at [email protected] or 262-260-2440.

This cover reflects a few examples of how SC Johnson is making a difference, from continually improving our products to using innovative power sources, including wind power, in the United States and Europe.

Find Out More Want to know more about SC Johnson? Visit our web site to find out about the company and its history. We're at www.scjohnson.com

SC Johnson’s Holistic Approach to Sustainability

Our sustainability efforts target four key areas where we believe we can make the biggest impact on quality of life, economic progress, our product mix and the planet. They are ...

Improving Our Products: Choosing more earth- responsible ingredients.

Reducing Resource Use: Reducing energy consumption and greenhouse gas emissions.

Strengthening Communities: Advancing social progress and public health.

Protecting Families: Preventing insect-borne diseases.

©2010 S. C. Johnson & Son, Inc.

Printed on paper manufactured with renewable wind power.

Printed on paper containing post-consumer fiber.

Cert no. BV-COC-080715

2010 PUBLIC REPORT 27InVESTInG In PEOPLE, InVESTInG fOR THE PLAnET

Part of being a responsible company is working

hard to play our role in helping to solve the world’s

environmental problems and, importantly, also helping

those who buy our products make more responsible

choices. This is an opportunity that inspires us every

day at SC Johnson. Making life better for people and

the planet is our mission.

Over the last year, we further reduced greenhouse gas

(GHG) emissions, increased our use of renewable energy

and invested in continually improving our products.

We also have worked hard to provide more industry-

leading transparency for our consumers by labeling our

products with their ingredients. We want our consumers

to scrutinize the careful ingredient choices that we make

so they can continue to trust our enduring brands.

We have begun laying the groundwork for our next

five-year strategy, which includes expanding our

GHG focus to address the full product lifecycle and

working in new ways to minimize landfill impact.

But these efforts are just part of our sustainability

story. In 2009, we also continued to fulfill the

obligation for business to drive social progress.

We celebrated the 50th anniversary of our philan-

thropic arm, the SC Johnson Fund, Inc., as well as

ongoing philanthropy by the company that began

decades earlier. We continued to invest in base-

of-the-pyramid business co-creation.

And, through investments such as our collaboration

with the Bill & Melinda Gates Foundation, we further

extended our efforts to prevent the insect-borne

diseases that affect millions of families around

the world each year.

This year, our public report has two different

covers and routes to get to know SC Johnson.

But they converge on the same belief —

that business has both an opportunity

and an obligation to make the world

better by advancing environmental

and social progress.

By sharing our company’s efforts

across both the environmental and

social facets of sustainability, this 2010 Public Report

aims to highlight the many ways in which we’re

bringing this belief to life.

It’s a commitment we’ve upheld for more than 120

years, and an aspiration shared by the 12,000 people

of SC Johnson. I continue to be very proud of, and

grateful for, the difference we’re able to make.

H. Fisk Johnson, Chairman and CEO

A Message from the Chairman and CEO

Making life better for people and the planet is our mission at SC Johnson.

28 SC JOHNSON AT-A-GLANCE WWW.SCJOHNSON.COM

SC Johnson at a Glance 12,000 people working in 70+ countries to make the world better.

Business Profile Sales: More than $8 billion

Status: Privately held; led by the Johnson family for five generations

Employees: 12,000

Headquarters: Racine, Wisconsin

Industry: Household consumer products

Markets: Our products are sold in virtually every country around the world.

Operations: 70 countries

Primary Manufacturing Locations: Argentina, Canada, China, India, Indonesia, Mexico, The Netherlands, the United Kingdom and the United States

Product Categories Home Cleaning — creating clean and hygienic homes.

Pest Control — helping protect families from pests that can carry malaria, dengue and other diseases.

Air Care — offering benefits from relaxing ambiance to odor elimination.

Home Storage — keeping food fresh and protecting families’ possessions.

Commitment Everywhere we operate around the world, along with introducing innovative and quality products that meet the needs of families, SC Johnson is committed to:

• respecting people and supporting universal human rights

• adhering to all local laws and regulations regarding products and how they’re made

• choosing more earth-responsible ingredients

• reducing emissions, waste and the use of fossil fuels, and we’re now looking at new ways to minimize landfill impact, too

• contributing to our host communities through philanthropic contributions and local volunteerism

Find It Online: SC Johnson is in its 19th year of publicly reporting progress on sustainability objec- tives. Visit www.scjohnson.com/2010Report

for information about our reporting practices. Or, contact Kelly M. Semrau, Vice President – Global Public Affairs and Communication, at [email protected] or 262-260-2440.

Major Brands

Other Businesses In recent years, SC Johnson also acquired The Caldrea Company, marketer of the Mrs. Meyer’s Clean Day® and Caldrea® brands, and Soy Basics, maker of soy candle brands including Beanpod Candles®, Soy Scentsations® and Soy Inspirations®. We also acquired majority ownership of Fruits & Passion, the Quebec company that manufactures and sells personal care and ambiance products.

Plus other trusted brands and regional product lines:

4 SC JOHNSON AT-A-GLANCE WWW.SCJOHNSON.COM

SC Johnson at a Glance 12,000 people working in 70+ countries to make the world better.

Business Profile Sales: More than $8 billion

Status: Privately held; led by the Johnson family for five generations

Employees: 12,000

Headquarters: Racine, Wisconsin

Industry: Household consumer products

Markets: Our products are sold in virtually every country around the world.

Operations: 70 countries

Primary Manufacturing Locations: Argentina, Canada, China, India, Indonesia, Mexico, The Netherlands, the United Kingdom and the United States

Product Categories Home Cleaning — creating clean and hygienic homes.

Pest Control — helping protect families from pests that can carry malaria, dengue and other diseases.

Air Care — offering benefits from relaxing ambiance to odor elimination.

Home Storage — keeping food fresh and protecting families’ possessions.

Commitment Everywhere we operate around the world, along with introducing innovative and quality products that meet the needs of families, SC Johnson is committed to:

• respecting people and supporting universal human rights

• adhering to all local laws and regulations regarding products and how they’re made

• choosing more earth-responsible ingredients

• reducing emissions, waste and the use of fossil fuels, and we’re now looking at new ways to minimize landfill impact, too

• contributing to our host communities through philanthropic contributions and local volunteerism

Find It Online: SC Johnson is in its 19th year of publicly reporting progress on sustainability objec- tives. Visit www.scjohnson.com/2010Report

for information about our reporting practices. Or, contact Kelly M. Semrau, Vice President – Global Public Affairs and Communication, at [email protected] or 262-260-2440.

Major Brands

Other Businesses In recent years, SC Johnson also acquired The Caldrea Company, marketer of the Mrs. Meyer’s Clean Day® and Caldrea® brands, and Soy Basics, maker of soy candle brands including Beanpod Candles®, Soy Scentsations® and Soy Inspirations®. We also acquired majority ownership of Fruits & Passion, the Quebec company that manufactures and sells personal care and ambiance products.

Plus other trusted brands and regional product lines:

2010 PUBLIC REPORT 29INVESTING IN PEOPLE, INVESTING fOR THE PLANET

A Look at News from 2009 Along with launching more than 100 new products in 2009 and continuing to drive growth

of the business, SC Johnson also achieved a variety of sustainability milestones during the

year. Here’s a brief look at a few of these accomplishments ...

MARCH

SC Johnson announces plans to go beyond regulatory requirements and voluntarily provide ingredient information — including dyes, preservatives and fragrance ingredients — for our air care and home cleaning products. We also introduce www.whatsinsidescjohnson.com to make this ingredient information readily accessible and understand­ able for consumers on the Internet.

At its World Leadership Forum Luncheon in New York City, the Foreign Policy Association distinguishes both SC Johnson and our Chairman and CEO Fisk Johnson for commitment to corpo­ rate social responsibility. The recognition was due to the company’s longstanding environmental and sustainability leadership. In particular, the Foreign Policy Association noted our success in inno­ vating, manufacturing and marketing environmentally responsible products and our patented Greenlist™ process, as well as our renewable energy initiatives.

SC Johnson becomes a founding partner of Conservation International’s Team Earth, a worldwide sustainability effort that unites businesses, non­profit organizations, scientists, educators and individuals to address the most pressing environmental issues.

NOVEMBER

JULY

SEPTEMBER

In Mijdrecht, The Netherlands, SC Johnson launches our first owned and operated windmill at our largest European plant, called Europlant. The new windmill adds to SC Johnson’s strategic array of clean energy projects designed to reduce greenhouse gas emissions. It is expected to generate 66 percent of the electricity needed to power Europlant.

SC Johnson launches Ziploc® evolve™ sandwich and storage bags. The new line offers the same quality seal and freshness protection, convenience and price that consumers rely on, but is made with 25 percent less plastic than regular Ziploc®

brand bags and manufactured with a combination of renewable wind energy and energy from traditional sources.

SC Johnson launches the Nature’s Source® line of cleaning products made with 99+% natural or naturally derived ingredients. The line combines the power of trusted brands like Scrubbing Bubbles® and Windex® with a formula for consumers who want to tackle household jobs naturally.

JANUARY

And in January 2010 ... SC Johnson launches a wind energy pilot program at our headquarters cam­ pus in Racine, Wisconsin. Three SWIFT turbines are installed on the roof of one of the buildings on campus and connected to the company’s electrical distribution system. We hope to gain from this experiment a clear picture of the number of computers, machines and basic office resources that can be powered by this renewable energy.

NOVEMBER

In support of Conservation International’s Team Earth and to generate engagement for the cause, SC Johnson creates a section of its web site to collect environmental tips and inspire dialogue. For each tip shared, the company commits to contribute $1 to Team Earth, up to $25,000.

Just nine months after launching our industry­leading ingredient web site, SC Johnson completes the task of populating the U.S. site with more than 200 air care and home cleaning products and their ingredients. We also announced a Spanish­ language version of the U.S. site, which launched in February 2010.

SC Johnson’s Nature’s Source® cleaning products are among the first to receive the Green Good Housekeeping Seal, an

extension of the well­known Good Housekeeping Seal. The new designa­ tion is designed to set the bar for consumers who want to live a greener lifestyle.

30 ImprovIng our products WWW.scJoHnson.com

nEW tHIs YEAr > developed plans to further improve our Greenlist™ ingredient selection process.

> Expanded ingredient disclosure to canada and to spanish-speakers in the u.s.

> Invested in new products and product improvements that have a lighter footprint.

Choosing More Earth-Responsible Ingredients and Being Transparent

Improving Our Products

Follow links to more information wherever you see this symbol.

We’re committed to

making better products,

and communicating

openly about them.

2010 puBLIc rEport 31InvEstIng In pEopLE, InvEstIng For tHE pLAnEt

What is Greenlist™? Our now-patented Greenlist™ process provides ratings for more than 95 percent of the ingredients

we use. Each potential ingredient is rated from

3 to 0, with 3 considered “Best,” 2 “Better,” 1

“Acceptable” and 0-rated materials used only

in special circumstances.

The goal is that beyond meeting legal and regulatory

requirements, we use the Greenlist™ process to annually increase the proportion of our ingredients

with the least impact on the environment and human

health. We started at 4 percent “Best” ingredients

in 2001; today we are at 18 percent.

When SC Johnson scientists create a new product,

they work to select ingredients rated “Better” or

“Best.” When products are reformulated, the scientist

must use ingredients with ratings equal to or higher

than the original formula. While some ingredients with

a 0 score aren’t restricted by government regulatory

requirements, we use them only when there isn’t a

viable alternative.

How We’re Doing The Greenlist™ process has led to many improve- ments, such as phasing out less desirable ingredients

like PVC packaging. Similarly, we’ve improved numer-

ous formulas to work better and have less impact.

For example, we’ve cut nearly 48 million

pounds of VOCs from our products in the

last five years.

We’ve also made good progress toward

our aggressive 2011 aspiration of raising

our overall average ingredient rating to 2.

When we started Greenlist™, 18 percent of our ingredients had a rating of 2 or better.

By 2008/09, we’d brought that number

up to 44 percent.

But we haven’t reached our target yet.

Like any good scientific process, using the

Greenlist™ process is a continual learning experience, and we continue to identify

ways to make it even more valuable.

Better Products from Better Information In 2001, SC Johnson transformed how we evaluate ingredients with our Greenlist™ process

for classifying ingredients considered for use in our products. Nearly 10 years later, we’re

continuing to expand and develop the process.

Q What is sc Johnson doing to drive product improvements with the Greenlist™ process?

Our goal is to make it as easy as possible for our

scientists to make better decisions. We call it

“decision-making at the bench,” meaning the actual

lab table. We want to make sure that the Greenlist™ process is readily understandable and practically

applicable to product development.

So, we’re continually working on tools that help

our scientists more easily see and evaluate potential

ingredient options for a particular

product function. We want them to

be able to play around with those

options to see how different choices

would lower a product’s impact.

Dan Lawson is Sustainable Innovation Manager for SC Johnson.

Enabling Better Decision-Making A Q&A with SC Johnson’s Dan LawsonExpert Q&A

there’s more! click here to jump to the back of this book and read the entire interview, including what else sc Johnson is doing to drive product improvements.

10% 0-rated materials 14%

better

4% best

Baseline 2000/01

73% acceptable

1% 0-rated materials

55% acceptable

26% better

18% best

Results for 2008/09

(kg of raw material by EC, 5 base categories)

(kg of raw material by EC, 37 chemical and 12 component material types)

32 ImprovIng our products WWW.scJoHnson.com

Showing What We’re Made Of In March of 2009, SC Johnson announced a broad ingredient communication program.

It was the logical extension of the Greenlist™ process that has been helping us select better

ingredients for the environment and human health since 2001.

Knowing that families today want to understand

more about the products they use in their homes,

we decided to go beyond industry ingredient com-

munication guidelines that had been announced.

Instead, we committed to listing dyes, preservatives

and fragrance ingredients, which aren’t part of the

industry program, and making our information avail-

able through not just one, but three sources: online,

on product labels and via a toll-free number.

Since that 2009 announcement, SC Johnson has

achieved three key milestones in the implementation

of our disclosure program:

• In November 2009, just eight months after

announcing our plans, we had populated our U.S.

ingredient site, www.whatsinsidescjohnson.com.

The site now includes more than 200 air care and

home cleaning products, and the hundreds of

ingredients they include.

• In December 2009,

SC Johnson Canada

launched its own

ingre dient site in

both English and

French, located at

www.whatsinsidescjohnson.ca

and www.souslemballagescjohnson.ca.

Recognizing the launch, Paul Lapierre of Canadian

Cancer Society noted, “We believe that Canadians

have the right to know which ingredients are in

the products that they buy so that they can make

informed decisions about their health and about the

products that they use in their homes. We applaud

SC Johnson’s initiative to list ingredients on their

products’ labels, and we encourage other companies

to follow suit.”

• In March 2010, SC Johnson became the first com-

pany in our industry to offer a Spanish-language

ingredient site. Just like its

English counterpart, the

site offers easy-to-access

and easy-to-understand

information about the in-

gredients in SC Johnson’s

U.S. air care and home

cleaning products.

Chairman and CEO Fisk Johnson said, announcing

the news, “Families want to know what’s in

the products they use in their homes. By making

that information accessible to Spanish-speaking

consumers too, we’re helping even more families

understand that they can trust our products and

our company.”

A History of Ingredient Leadership While all sc Johnson products meet legal and regulatory requirements, studies occasionally surface new information that makes a particular ingredient less desirable. In these cases, we often choose to go beyond the requirements and replace these ingredients with others that have a better environmental or health profile. Here are a few examples …

• CFCs – eliminated in 1975, three years before the u.s. government mandated doing so, because of concerns about their impact on the ozone layer.

• Chlorine-bleached paperboard packaging – eliminated in 2002 because the chlorine can cause contamination of air and water.

• DDVP, an organophosphate insecticide – eliminated in 2004 because of links to human health and environmental risk.

• Paradichlorobenzene (PDCB) in toilet products – eliminated in 1993 due to concerns about its effect on ozone in the upper atmosphere and potential to contaminate water and accumulate in the food chain.

• Phthalates – being eliminated now at sc Johnson’s direction from the fragrances supplied for our products, because of consumer concerns about the larger class of substances in the phthalate family.

• Polyvinyl chloride (PVC) – eliminated from our packaging in 2002 because it’s not recyclable and has been linked to health problems and other issues.

• Propoxur, an insecticide – eliminated in 2006 because of concerns about toxicity and persistence in the environment.

2010 puBLIc rEport 33InvEstIng In pEopLE, InvEstIng For tHE pLAnEt

Policies and Partnerships No company can operate at its best without policies and partnerships that offer checks

and balances, as well as surfacing new ideas. That’s why we invest time and effort in both.

Here’s a look.

A Matter of Policy From how we develop and market products to how

we run our factories, SC Johnson has thorough guide-

lines that direct our actions. For example, we have

environmental policies on topics such as protecting

air quality and safeguarding rivers, lakes, wetlands

and oceans.

Alignment with policies is audited at SC Johnson

factories around the world at least once every five

years, which has led to continuous improvements in

factory standards. Following an audit, an SC Johnson

operation has 60 days to respond with a description

of actions to be taken and a timeline for completion.

How we determine product claims is a matter of

policy, too. Claims can’t be made simply for marketing

purposes — we have detailed standards for terms such

as “biodegradable” and “natural,” as well as for perfor-

mance claims. Along with helping ensure consistency

in how we talk about our products, these guidelines

also help ensure that claims are science-based.

Helpful Partnerships Some of SC Johnson’s policies and guidelines

develop over time as we learn from our own

experiences and from outside partners. In 2005,

SC Johnson became the first major consumer

packaged goods company to partner with the

U.S. EPA in its Design for the Environment (DfE)

program. It’s one of several partnerships that help

us continuously improve our products.

The DfE Safer Product Labeling

Program uses EPA’s expertise and

resources to evaluate products and

label those that meet the program’s

high standards. Our current DfE products include

items in our Nature’s Source®, Scrubbing Bubbles® and Shout® brands.

Another DfE program, the Safer Detergents

Stewardship Initiative, recognizes companies

that voluntarily commit to using safer surfactants

in their products. SC Johnson was named a

Champion in the Safer Detergents Stewardship

Initiative in 2008, the highest level achievable.

We also gained Charter for

Sustainable Cleaning membership

in 2006 with the International

Association for Soaps, Detergents

and Maintenance (A.I.S.E.) in Europe.

This voluntary membership means we’ve com-

mitted to continually improving our products and

processes in ways that benefit human health and

the environment.

Setting the Record Straight despite our ongoing commitment to responsibil- ity, like any company sc Johnson occasionally finds itself in the spotlight due to Internet rumors or other media that make negative claims about our products or product categories. But we don’t let misinformation stand.

We carefully evaluate all sc Johnson products and take safety allegations and concerns very seriously. In fact, in a typical year sc Johnson explores at least 50 hoaxes, rumors or claims that surface online or in the media.

Fact-based, scientific evidence is usually enough to correct misinformation. When a question is raised, we may review scientific literature, evalu- ate testing procedures, consult with experts, work with industry groups and more. We don’t stop until we’re fully satisfied that concerns are groundless. We’ve worked hard to foster a reputa- tion for doing what’s right, and that’s something we will always uphold and defend.

A Policy Example We often hear from consumers and organizations

who want to know SC Johnson’s position on

animal testing, so we’ve made it easily accessible

in the “Points of View” section of our online Press

Room. The bottom line is that we have to meet

government, safety and environmental requirements

for our products, but we’re working toward ways to

do so while continually minimizing animal testing.

Visit www.scjohnson.com/en/press-room/points-

of-view.aspx to access the full position statement.

34 ImprovIng our products WWW.scJoHnson.com

Superior Products, Made Smarter Each day, SC Johnson products are used by millions of families around the globe. That’s

why we think it’s so important that our products not only be innovative, but also effective

and responsible. Here are a few examples of recent product advances.

Our new Earth Options by Raid® products give consumers a great solution for outdoor pests. Two

of the products use pyrethrum, a botanically derived

insecticide from the chrysanthemum flower. The

Insecticidal Soap is approved for organic production

by the USDA’s National Organic Program, and is listed

by the Organic Materials Review Institute (OMRI) for

use in the production of organic food and fiber.

In China, we updated both the formula and the bottle

for this Mr. Muscle® Heavy Duty Kitchen Cleaner. A 30- percent-lighter bottle means less plastic and the new

formula is less caustic, has a lower cost and still works

as well or better than competitive products. Producing

it requires 350 fewer tons of ingredients annually.

These ultra-light Ziploc® evolve® bags are made with 25 percent less plastic than regular Ziploc® brand bags, and are manufactured with a combi-

nation of renewable wind energy and energy from

traditional sources.

This innovative mosquito coil is made using more

than 50 percent recycled paper instead of the usual

mixture of sawdust and other ingredients. As a result,

it weighs a third less than normal coils, but is actually

more durable. Since it’s not easily breakable like other

coils, we were able to reduce the packaging around

it by more than 70 percent.

2010 puBLIc rEport 35InvEstIng In pEopLE, InvEstIng For tHE pLAnEt

Nature’s Source® cleaning products were among the first to receive the new Green Good

Housekeeping Seal. This designation is meant

to set the bar for consumers who want to live

a greener lifestyle. Nature’s Source® cleaners are packaged in recyclable bottles and contain

99+ percent natural ingredients.

An evaluation of Windex® glass cleaner formula showed we could make the surfactant and solvent

work together better. We optimized the ratio of

ingredients and were still able to satisfy consumers.

Even better, the new combination of ingredients

and quantities used gives the product an even

better environmental profile.

Glade® PlugIns® Scented Oil refills used to come in boxes with larger, plastic-covered windows. By

changing to these smaller, teardrop-shaped windows,

we could eliminate the plastic, making the packages

easier to produce, transport and recycle.

Along with delivering superior coverage in tubs and

showers, Scrubbing Bubbles® Daily Shower Cleaner Power Sprayer, along with Scrubbing Bubbles® Ex- tend-A-Clean™ Power Sprayer for bathroom surfaces, brings one-touch ease to consumers who

aren’t able to or prefer not to repeatedly squeeze

a trigger. In fact, it’s earned the Arthritis Foundation’s

Ease of Use Commendation seal.

36 Reducing ResouRce use WWW.scJoHnson.coM

neW THis YeAR > Began partnering with WRi and clearcarbon to test new gHg reporting protocols.

> Joined conservation international in launching its Team earth program.

> Achieved further progress toward our 2011 greenhouse gas reduction goals and laid groundwork for working in new ways to minimize landfill impact.

Reducing Energy Use and Greenhouse Gas Emissions

Reducing Resource Use

Follow links to more information wherever you see this symbol.

We’re committed

to continually

lightening our

impact on the world.

2010 PuBLic RePoRT 37invesTing in PeoPLe, invesTing FoR THe PLAneT

Doing Better, With Less For decades, SC Johnson has taken steps to minimize our impact. Since 2000 alone, our

worldwide factory greenhouse gas emissions are down nearly 32 percent, far surpassing

our goal of a 12 percent reduction by the end of 2010. And we want to do even more.

That’s why SC Johnson has been helping to develop,

and now test, standards for measuring and reporting

greenhouse gas (GHG) emissions across corporate

and product supply chains.

Expanding Reporting This is the latest step of the GHG Protocol Initiative

convened by the World Resources Institute and the

World Business Council for Sustainable Development.

On the heels of previous standards, such as the GHG Protocol Corporate Accounting and Reporting Standard that SC Johnson employs, this new effort aims to

define standards and measures for broader reporting.

In January, SC Johnson joined a formal test of the

Scope 3 (Corporate Value Chain) Accounting and Reporting Standard. This new standard broadens companies’ measurement to include what are known

as “Scope 3” emission sources — upstream activity

such as direct supplier emissions, waste generated,

and company business travel, as well as downstream

activity such as transportation and distribution,

consumer use and product disposal.

Testing the New Standard The goal is to incorporate real-world feedback that

ensures the new standard can be implemented by

companies of all sizes, geographies and industries.

About 60 companies are testing the Scope 3 protocol

or its sister effort, the Product Life Cycle Accounting and Reporting Standard.

Q is there a business case for companies to get involved with greenhouse gas (gHg) reductions?

Absolutely. Carbon, quite simply, is money. I think

companies are finding that when they reduce their

carbon footprints, they save money. Carbon has

a price, whether that price is pollution, the cost

of energy or something else. Having a low carbon

footprint is a strong cost-efficiency initiative.

Calculating a carbon footprint is where the GHG Protocol standards come in. Standard protocols and measurements will give companies a more accurate

picture of the environmental, economic and social

impact of the products they make. This will help com-

panies identify the best partners and make strategic

decisions for sourcing materials and creating products.

It lets companies see the available choices, weigh the

tradeoffs and avoid unintended consequences.

Q How does the supply chain fit in? When it comes to most consumer

products, companies are realizing

that a majority of the emissions

created during a product’s lifecycle occur within

the supply chain. A tremendous amount of energy

goes into finding and processing raw materials,

transporting materials and making them into finished

products. Even before products are sold to consumers,

many have a huge amount of embedded energy.

Kyle Tanger is the founder and CEO/President of ClearCarbon, which helps organizations create competitive advantage through carbon measurement, management and monetization. SC Johnson is working with ClearCarbon as we test the Scope 3 protocol. www.clearcarboninc.com

Making Measurement Matter A Q&A with ClearCarbon’s Kyle Tanger

There’s more! click here to jump to the back of this book and read the entire interview, including what Kyle sees on the horizon.

WRI Q&A Expert Q&A

Energy Innovations, GHG Advances From wind power to waste palm shells to methane from a public landfill, SC Johnson uses innovative energy sources to minimize our GHG impact. And it’s working:

> 2009 global manufacturing GHG emissions down 31.6% vs. 2000 on an absolute basis

> 2009 U.S. GHG emissions down 29.1% vs. 2005 on an absolute basis

> 39.7% of the company’s electricity sourced from renewable energy

38 Reducing ResouRce use WWW.scJoHnson.coM

Measuring Our Progress Here’s a look at SC Johnson’s 2009 progress against our company’s energy, emissions and

other goals. We’re thrilled to have already achieved three of these four corporate objectives,

which are due to be completed by the end of 2010.

G O

A L

2006

2007

2008

2009

2010

0 10 20 30 40 50 60 70

-33.71%

-40.5%

-46.0%*

-54.0%ACHIEVED

G O

A L

2006

2007

2008

2009

2010

0 3 6 9 12 15 18 21 24 27 30 33

-9.4%

-15%

-27%

-31.6%

ACHIEVED ACHIEVED ACHIEVED

G O

A L

2006

2007

2008

2009

2010

-8 -4 0 4 8 12 16 20 24 28 32

-2.4%

7%

-17%

-29.1%

ACHIEVED ACHIEVED

Waste and Emissions Reduction goAL: By 2011, for global manufacturing reduce combined air emissions, water effluents and solid waste by 50 percent versus the 2000 baseline, as a ratio to production.

Greenhouse Gas Reduction — U.S. goAL: By 2011, reduce on an absolute basis U.S. GHG emissions another 8 percent versus the 2005 baseline.

Greenhouse Gas Reduction — Worldwide goAL: By 2011, reduce GHG emissions for all worldwide factories by 12 percent versus the 2000 baseline on an absolute basis.

Global Renewable Energy goAL: By 2011, source 40 percent of total electricity usage worldwide from renewable energy.

G O

A L

2006

2007

2008

2009

2010

0 10 20 30 40 50

28%

28%

36%

39.7%

Here’s a look at SC Johnson’s 2009 energy consumption by source.

2% diesel

1% kerosene

5% fuel oil

4% gasoline

5% palm shells

20% landfill gas

60% natural gas

2% LPG

62% purchased electricity

37% purchased renewable electricity

1% purchased steam

Direct Energy Consumption by Source Indirect Energy Consumption by Source

* Our last Public Report indicated we held steady at -40.5% in 2008, however when all final global data was in, we had achieved a 46% reduction.

2010 PuBLic RePoRT 39invesTing in PeoPLe, invesTing FoR THe PLAneT

Continuous Commitment, Continuous Progress Here’s a look at a few of the ways SC Johnson is continuing to progress our commitment to

reducing greenhouse gas impacts around the globe.

Q What benefits do companies bring to the Team earth coalition?

Because it blends top-name consumer brands,

scientific research and individuals all around the

world, Team Earth offers a unique approach to green

outreach. For example, when we launched this spring’s

“do more / do less” campaign, our partners carried

the message to their employees and customers. These

are individuals CI didn’t directly reach before, meaning

millions of people are being encouraged to do more by

planting trees or using compact fluorescent lights, and

do less by driving less and creating less waste.

Q Many of the companies involved with Team earth already have sustainability campaigns in place. What will they do differently as members of Team earth?

Having strong sustainability practices

makes them valuable partners. Still, a

company working alone can only ac-

complish only so much. When several

companies collaborate and leverage

the messages of one another, the possibilities are end-

less. Plus, Conservation International is a neutral third

party that companies can tap as a source of informa-

tion when educating their employees and customers.

Julie Blackwell is Senior Director – Conservation International and Team Earth. You can learn more about CI and the Team Earth initiative at www.teamearth.com

Collaborating to Drive Results A Q&A with Conservation International’s Julie Blackwell

Supporting Team Earth In September 2009, SC Johnson became a founding member of Conservation International’s Team Earth

project, which unites businesses, non-profit organizations, scientists, educators and individuals to address the

earth’s most pressing environmental issues. Team Earth’s first challenge is climate change, making it a natural

fit for our commitment to innovative renewable energy solutions and reducing GHGs. SC Johnson’s participation

includes financial and other support. As one small example, last fall we created a special section of our web site

where consumers can share environmental tips. For each tip submitted, SC Johnson is giving $1 to Team Earth,

up to $25,000. Visit it at www.scjohnson.com/TeamEarthTips

Smarter Shipping, Lower Emissions In 2009, SC Johnson worked to implement legislation in Wisconsin that provides a special permit for heavier truckloads. With the permit, we can safely increase the weight of shipments to our local warehouses to 98,000 pounds from the normal 80,000-pound loads. The heavier loads result in 72,000 fewer shipping miles trav- eled yearly and 15.7 tons of carbon dioxide eliminated. In addition, 100 percent of 2009 outbound SC Johnson shipments were handled by carriers participating in the U.S. EPA’s SmartWay1 Transport Partnership, up from 78 percent in 2008.

1 SmartWay is a trademark of the U.S. Environmental Protection Agency.

Click here to jump to the back of this book and find out more.

New Winds of Change in 2009, sc Johnson launched its first company-owned windmill, at our largest plant in europe. The 262-foot wind turbine generates about 66 percent of the electric- ity needed to power our plant, preventing 3,930 metric tons of greenhouse gas (gHg) emissions annually.

We then continued to push the winds of change in January 2010, launching a one-year wind energy pilot program at our headquarters in Racine, Wisconsin. Three sWiFT mini-wind turbines were installed on one of our office buildings, with the goal of reducing gHg emissions while raising awareness that renewable energy can be used in urban settings.

There’s more! click here to jump to the back of this book and read the entire interview, includ ing where Julie sees corporate collaborations going in the future.

Expert Q&A

40 2010 METRICS QUICK REFERENCE WWW.SCJOHNSON.COM

SC Johnson 2010

Metrics Quick Reference By 2008/09, 44 percent of our ingredients were rated "Better" or "Best." Page 31.

By 2009, we had completed three of our four corporate energy and emissions goals. Page 38.

We believe in taking a holistic

approach to sustainable business.

That's why this 2010 Public Report

shares progress across both the

environmental and social facets

of sustainability. G

O A

L

2006

2007

2008

2009

2010

0 10 20 30 40 50 60 70

-33.71%

-40.5%

-46.0%*

-54.0%ACHIEVED

G O

A L

2006

2007

2008

2009

2010

-8 -4 0 4 8 12 16 20 24 28 32

-2.4%

7%

-17%

-29.1%

ACHIEVED ACHIEVED

Waste and Emissions Reduction GOAL: By 2011, for global manufacturing reduce combined air emissions, water effluents and solid waste by 50 percent versus the 2000 baseline, as a ratio to production.

Greenhouse Gas Reduction — U.S. GOAL: By 2011, reduce on an absolute basis U.S. GHG emissions another 8 percent versus the 2005 baseline.

G O

A L

2006

2007

2008

2009

2010

0 3 6 9 12 15 18 21 24 27 30 33

-9.4%

-15%

-27%

-31.6%

ACHIEVED ACHIEVED ACHIEVED

Greenhouse Gas Reduction — Worldwide GOAL: By 2011, reduce GHG emissions for all worldwide factories by 12 percent versus the 2000 baseline on an absolute basis.

Global Renewable Energy GOAL: By 2011, source 40 percent of total electricity usage worldwide from renewable energy.

G O

A L

2006

2007

2008

2009

2010

0 10 20 30 40 50

28%

28%

36%

39.7%

* Our last Public Report indicated we held steady at -40.5% in 2008, however when all final global data was in, we had achieved a 46% reduction.

10% 0-rated materials 14%

better

4% best

Baseline 2000/01

73% acceptable

1% 0-rated materials

55% acceptable

26% better

18% best

Results for 2008/09

(kg of raw material by EC, 5 base categories)

(kg of raw material by EC, 37 chemical and 12 component material types)

2010 PUBLIC REPORT 41INvESTING IN PEOPLE, INvESTING FOR THE PLANET

Our community leadership encompasses time and financial support — more than $180 million in contributions in the past 10 years. Page 14.

Data provided in this report was prepared following the 2002 Global Reporting Initiative (GRI) Sustainability Reporting Guidelines except for financial and production data, which is business confidential and considered proprietary by this private family enterprise.

— Dr. H. Fisk Johnson, Chairman and CEO, S. C. Johnson & Son, Inc.

Questions about this report should be directed to Kelly M. Semrau, vice President — Global Public Affairs and Communication, at [email protected] or 262-260-2440. For further information regarding SC Johnson and its legacy of sustainability leadership, please visit www.scjohnson.com

2% diesel

1% kerosene

5% fuel oil

4% gasoline

5% palm shells

20% landfill gas

60% natural gas

2% LPG

Direct Energy Consumption by Source

62% purchased electricity

37% purchased renewable electricity

1% purchased steam

Indirect Energy Consumption by Source

PEOPLE – PAGE 11: Tem simag- nis autenda dolore doloriatur. Sed ea coneces equaercias id et quidunt fuga. tenda dolore dolo- riatur. Sed ea cone

General Manager Participation On Community Boards Fiscal Year 2008/2009.

Worldwide Corporate Philanthropic Contributions Rolling 10-year cumulative contributions (includes SC Johnson Fund, Inc.) in U.S. dollars.

SC Johnson Operations Organizing a Major Employee Volunteer Event Fiscal Year 2008/2009.

0

10

20

30

40

50

60

70

80

90

100

Developed Markets

Developing Markets

Total

86% 88% 87%

0

10

20

30

40

50

60

70

80

90

100

Developed Markets

Developing Markets

Total

71% 76% 74%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 100,000,000

110,000,000

120,000,000

130,000,000

140,000,000

150,000,000

160,000,000

170,000,000

180,000,000

190,000,000

Here's a look at SC Johnson's direct and indirect energy consumption in 2009. Page 38.

We continue to be highly committed to ensuring consis- tent safety, health and environmental conditions at all of our factories. Page 23.

YEAR ENDINGP E

R 2

0 0

,0 0

0 H

O U

R S

W O

R K

E D

89 08 0991 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 0

5

10

15

20

25

30

35

40

Days Lost Medical Incidents Lost Time Incident Rate

Worldwide Safety Performance Record

42 InvestIng In PeoPle, InvestIng for the Planet WWW.sCJohnson.CoM

Find Out More Looking for the rest of the story?

Following are the continuations of Q&As

and other stories that began earlier in

the book. So, please, read on!

Improving Cleanliness and Incomes (Continued from page 12.)

In 2006, SC Johnson co-created a partnership in

Nairobi, Kenya with Carolina for Kibera and the

Coalition of Youth Entrepreneurs. The partnership

co-launched Community Cleaning Services (CCS),

in which entrepreneurs offered cleaning and pest

control services to community members at a very

low cost. The average person living at the base of

the economic pyramid, or BoP, has an annual income

of less than $3,000.

Since the effort’s launch, CCS has explored a variety

of different services, one of which has grown into a

solid business model — cleaning public and private

shared toilet facilities. Most toilets in Nairobi’s poor

neighborhoods are shared by multiple households

and are poorly maintained. Households now can hire

CCS to clean their toilet and share the cost, meaning

they can enjoy regularly maintained, more sanitary

toilets for about 17 U.S. cents per household.

CCS entrepreneurs create and lead teams

that provide the cleaning services in their own

communities, and the teams share the profits.

Eight entrepreneurs have now established profitable

CCS micro-enterprises, and another two are joining

CCS now. The number of cleaners involved has

increased to over 60 and the business grew 187

percent in the first two quarters of this year over

the same period last year. The typical pay is more

than two times the official local minimum wage, and

some toilets now have an on-site attendant whose

income is nearly 40 percent above minimum wage.

CCS also now manages

some public toilets, includ-

ing some it has refurbished

and painted to make com-

munity members feel more

comfortable using them.

Importantly, CCS is also

focused on environmental

sustainability and has

initiated a bulk product

program, so packaging

is reused within the

business rather than

discarded. This eliminates cost and waste for the

business and the communities in which it operates.

The business is under way in the Mulango Kubwa,

Korogocho, Kariobangi, Kariokor, Kawangware,

Pangani, Zimmerman and Mathare #10 areas

of Nairobi.

Uncovering Insights, Creating Solutions: A Q&A with SC Johnson’s Jeremy Knopow (Continued from page 13.)

Q How did you approach working with the CCS team?

The most important thing was to build mutual trust

from the beginning. I wanted to show early on that

I was willing to roll up my sleeves, literally, to unclog

a very dirty toilet. You can’t be selective if you’re truly

going to do immersive research. I also lived with one

of the entrepreneurs while I was there, and that went a

long way toward building a good working relationship.

He was a very gracious host.

I also found many people were eager to show me the

issues and problem areas they encountered. And, it’s

about working together. I wasn’t there to fix things

alone; it was understood that the CCS team had to

own the issues too and we’d solve them together.

Q What is your assessment of the impact this CCS initiative has had in the lives of the entrepreneurs

and on the communities overall?

The BoP business-building endeavor is different

because it isn’t just providing a product or service; it

provides a livelihood and new business opportunities

for the communities. This helps guarantee the sustain-

ability of the business, because the people involved Members of the CCS team recently met for a general meeting.

2010 PUBlIC rePort 43InvestIng In PeoPle, InvestIng for the Planet

now have a way to make a living by fulfilling what was

an unmet social, environmental or economic need.

I would say quality of life, education and process

improvements were the biggest areas of impact.

For example, Dennis Mambo, the lead team trainer

who was my host, was able to move from a one-room

tin shanty he shared with his brother into a concrete

structure. He was able to finally live under the same

roof with his wife and children, and they’ve since

upgraded to a two-room dwelling. This BoP effort

literally changed his standard of living. We worked

together and when I left, he was interviewing clients

the way I did and was quite adeptly iterating his

own prototypes.

In addition, the mere fact of having cleaner toilets is

significant for the community. The leading cause of

death among kids there is from water-borne illnesses.

Now, the level of bacteria in the toilets is dramatically

reduced, and people are more likely to use the facilities

versus polluting natural water sources.

Q Coming from a focus on developed-country projects, what did you find different here?

The similarities were actually more interesting than

the differences. The root of the user-centered R&D

process is really quite universal and can be adapted to

just about any situation, product or process, including

in undeveloped markets. The main difference for me

was I was working independently as a one-person

R&D operation.

That meant I needed to be more resourceful and it

took a little longer to get certain things accomplished.

For example, I needed otherwise common quarter-

inch plastic tubing for a prototype. It took almost two

weeks just to find something — a piece of used tubing

from a fish tank in a pet store.

Q What was most interesting? I was impressed with how innovative the entrepreneurs

are. They never cease to amaze me with what they can

do with very limited resources and background. That

is why I feel the educational piece of our BoP work is

such an important component of the project. Our part-

ners in Kenya have the drive and passion; we are just

helping empower them with business and R&D skills

so they can build their own businesses and careers. It

is very rewarding to see them be so successful.

Q What was most challenging? From an R&D standpoint, the biggest challenge was

accessing supplies, materials and resources. What

takes a couple clicks of the mouse in the United States

took days and weeks there. There are also complex

community politics that can affect business develop-

ment — multiple layers of tribal, political and religious

factors that can come into play.

Q Was anything surprising in terms of how it did or didn’t meet your expectations?

Well, I didn’t expect to hear Kenny Chesney’s country

music blaring from radios there! But, seriously, I was

so impressed with the level of personal pride people

have, even in the toughest communities.

Q What did you learn from this experience that can be applied to future BoP efforts?

I think the biggest learning is to get R&D involved in

the beginning, especially for the consumer insight

process. Everything eventually flows from those key

insights and identifying them accurately is a core

competency of R&D. This was a significant learning

that is already being applied to new BoP endeavors,

such as our malaria initiative that was recently kicked

off in Ghana.

Co-Creating New Businesses: A Q&A with the Center for Sustainable Global Enterprise’s Erik Simanis (Continued from page 17.)

Q You’ve been involved in a lot of BoP work over the years. What changes are you seeing in

recent years?

Because of the limited success stories, combined with

the current economic condition, some of the luster or

Problem CCs was buying sC Johnson’s Duck® cleaner in bulk and distributing it to cleaning teams. But it was nearly impossible to refill the traditional curved-neck Duck® applicator bottles from the spout of the bulk containers, so most teams used a wide-mouthed container instead. these replacement containers didn’t spray under the toilet rim and a lot of cleaner was wasted.

Solution the team collaborated to make a new applicator bot- tle from local materials. It’s easier to refill, has a curved neck to reach under toilet rims, and is translucent to allow the cleaners to see how much they’re using.

as an added plus, the new applicator bottle’s cap fits the bulk container as well, meaning they can be transferred to bulk containers to act as a decanting spout.

Results Waste of the Duck® solution has been reduced by nearly 100 percent.

44 InvestIng In PeoPle, InvestIng for the Planet WWW.sCJohnson.CoM

shine about the BoP as a source of profit and growth

has faded. A number of BoP investments are being

undertaken as part of corporate social responsibility

initiatives with no expectation that it will ever be

integrated into the profit and loss side of the business.

So the line between BoP as philanthropy and BoP

as business development has blurred.

I think this blurring of the line creates its own set

of challenges for companies. They are two totally dif-

ferent goals and kinds of investment — they require

different management structures around them to be

successful and create value. So when starting a BoP

project, there has to be internal clarity and alignment

whether it’s a business development initiative or a

philanthropic effort — sitting on the fence usually ends

up with an under-resourced business development

effort or a poorly-publicized philanthropic effort that

creates little value.

Q So then, should a company set out with a philanthropic mindset? Wouldn’t it seem greedy

for global companies to approach BoP initiatives for

the purpose of making money?

Actually, no; they are two different approaches that

create different kinds of value for the company and

the communities it aims to serve. Ventures that are

profitable are not only going to last a lot longer than

ventures that are purely social investments, but they

will scale much easier. That is particularly true in

economic times like we’re seeing now. It can be hard

for a social investment initiative to get the traction it

needs to keep going in the long term.

This has been an interesting issue. I think companies

almost feel guilty about pursuing BoP as a growth and

profit initiative, for fear that it gets labeled as “making

money off of poor people.” So companies self-censor,

and end up sitting on the fence between philanthropy

and business development. That, as I’ve said, compris-

es the initiative from the start.

Q What’s new or different in the SC Johnson/Bill & Melinda Gates Foundation-sponsored project in Ghana?

The key business challenge with the project in

Ghana is that there is no existing consumer market

for malaria prevention — we have to create that

market. So in Ghana, we’re building on the market

creation strategies we’ve been developing and testing

out in Kenya, India, the U.S. and Mexico over the past

five years with a number of companies.

The approach we’re using combines business

development with community organizing and social

movement techniques so that consumers in the

community feel a personal connection and commit-

ment to the new business, and the product offering

seems like a natural part of their lives. So we create

a base of consumer demand as we build the business,

rather than relying on marketing and awareness-

building campaigns at the point of business and

product launch.

Q Do you see this latest approach as the silver bullet that will open the doors on BoP investing, or will it be

a continuation on the evolutionary process?

It’s definitely part of an ongoing evolution of our

understanding of effective BoP strategies. We’ve

certainly made huge strides with pinpointing key

factors that drive successful market creation, but

there will always be opportunities to learn and

improve. Getting on the ground in Ghana will certainly

deepen that understanding and help take the methods

and practices to the next level.

Advocating and Partnering for Results: A Q&A with the Global Business Coalition on HIV/AIDS, TB and Malaria’s Neeta Bhandari (Continued from page 19.)

Q Global companies have a lot on their plates these days. Where should the fight against HIV/AIDS,

tuberculosis and malaria fit in?

There is also a strong business case for why

companies should make fighting HIV/AIDS, TB and

malaria a top priority. These diseases affect worker

productivity, cause absenteeism, increase training

costs, and ultimately can affect the bottom-line

of a company. For companies that have workforces

in highly endemic regions or for companies looking

to invest in the emerging markets, HIV/AIDS, TB and

malaria are issues they cannot afford to ignore.

Companies tend to find that their health-related

corporate responsibility efforts are highly motivating

for employees and help to attract and retain talent.

Furthermore, health is inextricably linked to economic

development — the healthier the society, the higher

the likelihood for economic productivity, and the more

purchasing power for consumer products — a virtuous

cycle ultimately benefitting businesses. Through part-

nership with an organization like GBC, there are ways

that global companies can address these issues in line

with their core strategic business objectives, ultimately

doing well by doing good.

Q Why is private/public/NGO collaboration important?

Public-private partnerships are important because

no one player can make a significant impact alone.

Corporations have a specific expertise they can bring

2010 PUBlIC rePort 45InvestIng In PeoPle, InvestIng for the Planet

to the table, but the public sector and NGOs often

have in-country expertise to contribute, which is

also critical.

Q Are there public health issues in existence today that could or will be eradicated within 10-20 years?

Are there any concerns beginning to emerge now

that will be significant problems in 10-20 years?

Eradication may be saying too much, but there are

many reasons to be hopeful. Malaria is where we have

the best shot. Nine African countries have cut their

malaria deaths by half in the last seven years and we

are only a few years away from having a good malaria

vaccine on the market. If the private sector and global

health communities join forces in strategically smart

collective actions, we can mitigate the effects of these

three diseases worldwide.

Challenges like the economic downturn, weak health

systems and lack of adequate funding create gaps

that need to be filled, and the way to get the job done

is for everyone to work together — and that includes

the corporate sector playing a lead role by turning

business assets into disease-fighting assets.

Q What new or different perspective do you feel SC Johnson may bring to the GBC? Any advice for

SC Johnson?

SC Johnson continues to lead through its engagement

in the fight against malaria, deploying its core compe-

tencies, expertise, and global reach in powerful, results-

driven ways. Given its focus on the Base of the Pyramid

strategies, the company can continue to share knowl-

edge and best practices with others, partner with key

global health stakeholders, and continue to serve as

global advocates. Furthermore, SC Johnson can share

knowledge and best practices on project and financial

management, as well as private sector approaches,

with national and regional governments, to help to

strengthen local health systems.

Q How can SC Johnson’s efforts complement/help advance the efforts of other GBC members?

By participating in GBC’s knowledge-sharing and

co-creation activities, other GBC members will learn

from SC Johnson’s successes and challenges, help-

ing them to achieve greater results. As SC Johnson

develops its information, education and communica-

tion tools on malaria, it can complement and further

enhance the workplace policies and programs of

other private sector companies. GBC can work with

SC Johnson to broker introductions and inform other

member companies about SC Johnson’s malaria

education tools, where they can be deployed in the

communities where other GBC members operate.

To the extent that it doesn’t interfere with the

company’s competitive strategy, SC Johnson

should promote its Base of the Pyramid and capacity-

building work (e.g., with pyrethrum farmers) among

other consumer products companies. The consumer

products sector has huge and growing reach in

African markets, and investments like these can

deliver both social and commercial returns to compa-

nies that follow SC Johnson’s example.

Q What else, if anything, would you like readers to know?

We’re proud to count SC Johnson as a GBC

member, and an integral part of a movement that

will end the ravages of disease faster. Companies like

SC Johnson are deepening their impact on global

health, and becoming more closely connected to

partners and customers. SC Johnson’s high-impact

leadership is something that your employees and

stakeholders can be very proud of.

Dedicated to Diversity and Inclusion: A Q&A with SC Johnson’s Maria Campbell (Continued from page 21.)

Q What were the second and third “a-ha” moments for SC Johnson?

The second came as a result of SC Johnson’s diverse

business councils, which heightened awareness of

the different needs of employees. For instance, the

Women’s Business Council helped the company

recognize the importance many working parents

place on having flexible schedules, for example not

having meetings scheduled at 6 a.m. or 6 p.m. due

to possible conflicts with family needs.

The third “a-ha” moment again goes back to the

business case, but this time relates to how we look in

our ads, how we speak to consumers and what images

we portray. This is when we recognized our ability to

connect with different consumers and communities,

both locally and internationally.

Q When it comes to diversity leadership, what opportunities lie ahead that global companies

could/should pursue?

When it comes to being diversity leaders, global

companies must think beyond simply U.S.-based

companies. This may require a mind shift away from

how we define things in the U.S. You should not bring

your “U.S. thinking” to the international table. The

way we define minority in the U.S. is not likely to be

the way it’s defined internationally. Some countries,

for example, may look at minority in terms of women

46 InvestIng In PeoPle, InvestIng for the Planet WWW.sCJohnson.CoM

or race or culture, while others may think about reli-

gious, tribal or underrepresented groups. Recognizing,

understanding and navigating these differences

will be the foundation of strong diversity leadership,

moving forward.

Q What do a company’s diversity practices say about it? Why is this an important measure?

A company’s diversity practices tell whether the

company is progressive or not. Diversity shows how

well a company respects its employees, its customers,

its consumers and the communities in which it oper-

ates. It’s all about the greater good. Companies with

strong diversity practices recognize the role diversity

and inclusion play in helping the company sustain

itself by having a workforce and customers that will

be around to help it survive.

It’s important to measure diversity, just as it’s impor-

tant to measure and track any business metrics. As

a business, you need to know where you are now,

the goal you’re trying to shoot for, and how you’re

going to get there. Why should that behavior be any

different when it comes to diversity?

Q Diversity has been on the radar of most companies for at least five to 10 years now. What

changes have been most encouraging to you?

What’s been disappointing?

Most encouraging is that more and more companies

have come to understand that operating with diversity

and inclusion makes good business sense and also is

the right thing to do. As you look around, you can see

more companies viewing diversity not just as an HR

initiative, but using diversity and inclusion to improve

effectiveness in managing every facet of the business.

On the other hand, it’s disappointing to see companies

that continue to view diversity as just an EEOC man-

date, quota or a policy forced on them by government.

The focus should be on the realization that the global

marketplace is very diverse.

Q What’s on the horizon for SC Johnson’s diversity and inclusion platform?

As we prepare for 2016 and beyond, we will continue

to "raise the bar" on how diversity and inclusion

serve as key enablers for SC Johnson. From helping

us understand our marketplace, to the demographic

and generational shifts that are affecting our consum-

ers, to the people who make up our company —

we’ll continue to need inspirational leadership versus

simply managing talent. And that requires a deep

and committed understanding of the enormous

possibilities of diversity and inclusion. We’re excited

about the future.

Investing in Safety Makes Sense: A Q&A with SC Johnson’s Frank Ericson (Continued from page 23.)

Q Why is auditing an important practice for global companies?

An important part of being a leader in Safety, Health,

Environment (SHE) efforts is measuring the status

of our programs at all of our manufacturing plants

against our corporate standards and regulatory

requirements. We can then use the audit results

to drive continuous improvement and to share

best practices. Measurement is important for

determining whether we’re meeting the standards

set by the company and local regulators, as well

as for setting improvement goals and identifying

how we’ll achieve them.

Q In what ways, if any, has SC Johnson added, deleted or changed its guidelines or programs in

the past year or so?

In 2008 we moved responsibility for the oversight

of quality measurement and tracking to our SHE

corporate team. This move allowed our team, now

the SHEQ team, to increase the consistency and best

practice measurements of the formal audits we regu-

larly complete worldwide. Additionally, every year our

team updates four to five of the SHE standards and

guidelines, as well as the training programs connected

with those areas. We choose the areas where we

believe we can make the most significant enhance-

ments to our efforts. In this way, our corporate offices

act as an independent monitor of our operations.

Q How many audits does SCJ conduct annually among its manufacturing sites across the globe?

How does this compare to industry standards?

Every site undergoes an audit every three to five

years, depending upon the complexity of the opera-

tions. Unfortunately, not all industries perform routine

SHE audits of their operations. For those that do,

the audit frequency is two to five years.

SC Johnson conducts quality audits every year at

each of our manufacturing sites until their programs

reach the “high” level. At that time, they move to

a three-year audit frequency, where they stay as

long as that high score can be maintained. This

audit frequency is consistent with that used by the

leading quality programs.

Q What happens when a site doesn’t pass an audit? What happens next?

Since starting our audit program in 2002, SC Johnson

has audited all of our sites multiple times. Today, all

of our operations have scores that are “acceptable”

or higher, with the exception of some of our new

2010 PUBlIC rePort 47InvestIng In PeoPle, InvestIng for the Planet

acquisitions, which had not been audited before. For

each SHE audit, irrespective of the score, a corrective

action plan is developed and all audit findings must

be addressed within a year. The purpose of the SHE

audit process is to drive continuous improvement.

In addition, all findings within the Quality audits must

be addressed within one year as well.

Q How can a company identify best SHEQ practices among its peers? In other words, how can you spot

who the leaders are, so you can learn from their

actions and programs?

Since companies don't necessarily connect their

SHE and Quality programs, let me answer with

a focus on SHE. We belong to a few outside SHE

audit groups, including the IAPC (International Audit

Protocol Consortium). Members are responsible for

their companyies’ SHE audit programs. IAPC members

get together annually to share best practices, current

challenges, successes, etc.

Leaders are those companies that make the auditing

process more effective, more consistent, and more

relevant to overall corporate objectives, which is our

intent at SC Johnson, too.

Q What’s your advice for companies that want to implement or enhance a SHE program — what are

the top things they need to do?

Get involved with a group of your peers to understand

the most current practices and programs. Start where

the leaders are and benefit from what they have learned.

Companies will need a full commitment for SHE

excellence from their top management. They’ll also

need effective and comprehensive SHE and Quality

management systems. These systems help a company

get to a high performance level, to consistently

maintain that performance, and to have sustainable,

high performing programs.

Q Why should companies such as SCJ be open about their SHE and Quality practices? Why should

they lend a hand to other companies looking to start

or improve their practices?

Our position is to share what we are doing with SHE

and Quality practices. It’s part of being a corporate

leader. Others can learn from what we have done, just

as we have learned from the best practices of other

companies. In the end, we want our whole industry

to be responsible in its SHE and Quality practices,

not just a few companies.

Enabling Better Decision-Making: A Q&A with SC Johnson’s Dan Lawson (continued from page 31.)

Q Do you continue to see progress on the company’s overall Greenlist™ results?

Progress is always a challenge, but we’ve made a

lot of improvements, such as removing PVC from

our packaging and eliminating chlorine-bleached

paperboard.

We have eliminated materials we considered to be

0-rated, even though they met legal and regulatory

requirements, such as the insecticides DDVP and

propoxur. And in 2008, we started working with our

suppliers to have them eliminate phthalates from

the fragrances they provide for our products.

Q These efforts focus on formula; is SC Johnson exploring other elements of the product footprint?

That’s a good question because, as we like to say, it’s

not just about the liquid in the bottle. It’s about the

holistic product experience, and we believe there are

many ways to lighten a product’s footprint.

One example is dematerialization — meaning not just

using better materials, but less of them. That applies

to the ingredients in a formula, of course, but it’s also

about other aspects such as packaging and even

how items are displayed on shelf and used in the

consumer’s home.

These are all elements of our environmental strategy.

While the Greenlist™ process focuses on products, our overall environmental commitment continues to

take a very broad view. For example, you can read

about our participation this year in WRI and WBCSD’s

Scope 3 (Corporate Value Chain) Accounting and Reporting Standard pilot on page 37.

Making Measurement Matter: A Q&A with ClearCarbon’s Kyle Tanger (continued from page 37.)

Q Why is it important to have global standards for measuring and reporting greenhouse gas (GHG) emis-

sions across corporate and product supply chains?

Environmentally conscious companies have been

looking for ways to reduce the amount of energy

incurred within the supply chain in order to reduce

their carbon footprints and reduce costs. However,

there haven’t been common standards for measuring

and reporting.

Setting global GHG standards creates a common

language, one that gives consistency across similar

48 InvestIng In PeoPle, InvestIng for the Planet WWW.sCJohnson.CoM

companies, which in SC Johnson’s case would be

other consumer product manufacturers. It also pro-

vides common terminology that suppliers can use

when talking with their business partners and other

suppliers. It’s easier to aggregate data if everyone

uses the same nomenclature.

Q In the past, many companies have published lifecycle GHG data calculated using their own protocol.

Why is it important to have an “agreed-to” protocol

standard used by all?

This goes back to the importance of having a common

language and standards, which produces data that are

more meaningful.

In the past, companies have shared the results of

their product lifecycle analyses, but not necessarily

the steps or components that went into the calcula-

tion. With the common language and standards,

you know what went into it and can apply data to

improve your own footprint.

Q What value do partnering companies, such as SC Johnson, offer for the GHG Protocol initiative?

The top thing companies like SC Johnson offer is

credibility and practical knowledge. SC Johnson

has a long history of corporate responsibility. There

is no substitute for real experience.

The critical feedback provided by SC Johnson and

companies like it will make this protocol accurate,

applicable and useful. Without leading companies’

participation, the protocol could be without a practical

focus and be based on data that aren’t useful or don’t

exist. The result would be an initiative that wouldn't

have widespread adoption and it won’t drive change.

Q How were companies selected to participate in testing the draft protocol? Why is testing necessary?

Companies volunteered, with many of them stepping

forward because they realize the importance of the

protocol. The World Resources Institute narrowed

down the field of volunteers, ultimately selecting

companies that would represent a range of different

industries as well as global industry leaders who could

impact the protocol development process through

their experience.

Testing is necessary to make sure the protocol is

practical, and that results are actionable. The testing

process also is an opportunity for stakeholders to have

a voice in the process. Stakeholders include govern-

ments, NGOs, academia, subject matter experts and

companies/industry.

Q Is Scope 3 the final stage/step of measuring and reporting GHG emissions, or will it lead to

new measurements/reports (perhaps ones not

yet even imagined)?

It would be difficult to imagine too many more

protocols. Instead of creating new protocols, I think

there will be refinements of the most impactful com-

ponents of each stage. Scope 1 applies to direct emis-

sions from sources controlled by the company. Scope

2 are indirect emissions such as purchased electricity,

where emissions are created during the generation of

electricity from fuels used by the power company.

If you think about it, Scope 3 emissions are like the

rest of the world for a company. They are emissions

created because of the company’s activities but not

directly by the company, such as emissions created

within the supply chain or at the end of the product

lifecycle.

Continuing to hone and refine the protocol will

help companies see where their actions will have

the greatest impact.

Q How will you, as an organization, know if the GHG protocol is successful?

If the information doesn’t lead to better decision-

making, then it isn’t a success. That is the ultimate

grade. Another aspect of success is the distribution

and sharing of knowledge. Much of what companies

know about their carbon footprints today was calcu-

lated using industry averages and broad information.

General information doesn’t yield the precision and

level of confidence companies really need for effective

and confident decision-making.

The end goal is for businesses to gain clear insight into

all of the components of doing business, even those

components that are outside of their direct control,

and then use those insights to make business better.

This valuable knowledge makes it possible for com-

panies to achieve sustainability, make higher-quality

products, and offer a better price.

2010 PUBlIC rePort 49InvestIng In PeoPle, InvestIng for the Planet

Smarter Shipping, Lower Emissions (continued from page 39.)

Along with the 2009 advances explained on page

39, SC Johnson continues to use rail cars, whenever

feasible, to transport propellants, alcohols, solvents,

plastics and other items into our manufacturing plants.

One rail car is equal to about six tanker trailers.

We’re also promoting shorter-haul trips and increasing

the use of “day cabs” — truck cabs specifically designed

for such short runs — and continuing to enforce our

anti-idling policy at all SC Johnson facilities. After

seven minutes, trucks must turn off their engines.

Here’s a look at SC Johnson’s progress with

intermodal transport.

Collaborating to Drives Results: A Q&A with Conservation International’s Julie Blackwell (continued from page 39.)

Q What was the impetus for Conservation International to launch Team Earth?

Since its creation more than 20 years ago, Conservation

International (CI) has operated as an NGO with two

core strengths: first, our wide-reaching partnerships

with businesses, NGOs and other partners in public

and private practices; and second, our relationships

with the scientific community.

In the past, CI’s focus has been on reaching out to and

working with decision makers and influential leaders.

Team Earth is a collaborative effort of cross-sector

partnerships designed to reach individuals and inspire

them to take action.

People need nature to thrive, and through CI’s work

with corporations and governments, and Team Earth’s

work with consumers, we are trying to support efforts

around a greener, sustainable development path.

Q CI works with more than 1,300 NGO partners on projects around the world. What are NGOs looking

for from their corporate partners?

The missions of CI and other NGOs are varied, but at

the end of the day, we all have the goal to save our

planet. A lot of power comes from that one collective

message. When you get down to where the rubber

meets the road, though, NGOs want partners who

don’t just talk about green practices, they go out

and take action and get things done.

Good examples are when Starbucks launched its

Conservation International Starbucks Card, which

donates 5 cents toward forest protection efforts each

time a customer pays with the card, and SC Johnson,

which added a “Green Tip of the Day” promotion to

its web site and donated $1 for every green tip added.

Q Since 1987, Conservation International has been working to conserve the Earth’s living natural heritage

and global biodiversity. What changes have CI noticed

through the years? How can Team Earth and compa-

nies help?

More companies, groups and individuals are taking

a holistic approach to conservation and world health.

In the past, there was almost an invisible line separat-

ing the missions and goals of the many organizations

working out there. On one side were the organizations

that supported human health and on the other side

were organizations that supported ecosystems and

biodiversity.

You don’t see so much division anymore. Today, there

are more collective efforts that are moving toward a

common vision. There’s more talk about how without

one, we eventually won’t have the other. The members

of Team Earth are key to driving this new vision and

working to achieve common goals.

Q What else is on your mind these days when you think about sustainability, collaborative efforts and/or

environmental challenges?

My mind is on how we can create a society where we,

as individuals, instinctively take action, not because

we’re working in the “green space,” but because we’ve

decided to make smarter decisions to lead a healthier

life and live in a way that protects the planet for future

generations. I would like it to permeate our thoughts

that the steps we take don’t have to be a sacrifice in

order for them to be good.

2005

2006

2007

2008

2009

0 5000000 10000000 15000000 20000000 25000000

17,505,555

20,278,171

22,245,437

22,853,654

23,783,495

SC Johnson Intermodal Shipping Miles shipped via intermodal transport