CSR at Dupont by Annette Hansen, Dupont

CSRA driver for innovation and competitiveness

11 October 2012Annette Hansen

Nutrition

Health

Sustainability

DuPont 2011 segment sales

Agriculture

Electronics &Communications

Performance Chemicals

Performance Coatings

Performance Materials

Safety &Protection

Industrial Biosciences

Nutrition & Health

* Total company sales exclude transfers.

$38B*

$9.2B

$2.5B

$4.3B

$6.8B

$3.9B

$3.2B

$7.8B

$0.7B

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DuPont Nutrition & HealthOur Offerings

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DuPont Qualicon Diagnostics

A broad range of ingredients for manufacturers of food and beverages, dietary supplements and pet food, providing enhanced bioprotection, improved nutritional profile, and better taste and texture with greater cost efficiency and lower environmental impact.

Science-based systems for pathogen detection and microbial monitoring.

Innovative soy‑based technologies for food, meat and nutritional products, spanning multiple applications and relevant to broad market segments — all delivering healthy, nutrition ingredients.

Food Energy Protection

Feeding the World Reducing Our Dependence on Fossil Fuels

Keeping People & the Environment Safe

DuPont Growth StrategyWe are applying our science to find solutions to some really BIG challenges

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Important external trends

› World population will increase with ~30% reaching 9 billion people in 2050

› The middle-class consumers are expected to grow from 1.8 billion to 4.9 billion in 2030 (~ 85% comes from Asia)

› The proportion of older people (that is, those aged 60 years or over) is expected to double from 2007 and reach 22% in 2050

› 44 million people was driven into poverty by rising food prices in 2010

› More than one billion people are undernourished – one of every sixth in the world – the same number of people are overweight, 300 million are obese

› One of six Americans suffers from some form of food borne illness, is hospitalized or may even die from a food borne illness

Source: http://www.foodsecurity.ac.uk/issue/facts.html

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Understanding our value chain to increase our focus

› Greenhouse gas emissions related to our raw materials are more than 2 times higher than the emissions from our own operations

› Avoided impacts from using our products are estimated to be 2.5 times higher than our total impacts

The carbon footprint to be updated with N&H data in 2012

Opportunities Opportunities

Sustainability trends and impacts drives our strategies and targets

› Our commitment to address global challenges drive our value chain based strategies and targets

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How food ingredients can help impact reduction in the value chain

Nutrition & Health Ingredients and

Enzymes

Replacement of high impact raw

materials

Manufacturing Efficiency

Food waste

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The sustainability challenges with food production

›30% of all human induced greenhouse gas

emissions are related to food

›30% of all food is wasted in the household

› This results in a high pressure on resources such as land, water and biodiversity

› Increasingly volatile commodity prices

Foley et al. (2011): Solutions for a Cultivated Planet. Nature (2011) Gustavsson et al. (2011): Global Food Losses and Food Waste, FAO (2011)

GHG emissions

food products ‘most products’

Impact profile of food products

Raw materials Processing Use Waste treatment

Life cycle stage

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How food waste relates to agricultural impacts

Household Food Waste 30%

Other losses in the value chain ?%

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Why food is wasted? – A developed world example

Food that has passed a date label, gone moldy, rotten, looked, smelt or tasted bad

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LCA of XIVIATM (comparative study)

*ISO 14044 compliant comparative LCA (reviewed by a panel of three external experts)

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

45,0

Xivia (Wood based from Danisco)

Xylitol (Made from corn cobs)

Xylitol production

Xylose production

Greenhouse gas emissions (kg CO2e) per kg product

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Example – The important role in CO2 reduction of ingredients in Mexico’s bread products

On average, 30% of bread products are wasted

If we could prevent

20% of this waste in the household....

…this would represent a saving of more than

288,000tonnes of CO2e

every yearThis is roughly equivalent to taking 12,000

cars off of Mexico City’s streets

Wheat Flour

Yeast StabilizersEmulsifiers

Enzymes

This represents

1.44 Milliontonnes CO2e from Mexico’s packaged

bread sales

Example – Impact reduction in milk

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Avoided 460gCO2e

Induced 104g CO2e

Net CO2e savings per liter of milk

356 g CO2e=

Reduction of 46 g milk powder

~ 460g CO2e (US)Milk

Use of 50 g more whey powder

~ 100g CO2e

Less Impactful Replacement

Use of 1 g extraRECODAN (RM)

~ 4 gram CO2e

Stabilizer system

SustainabilityBalancing environmental, social and economic factors throughout the value chain

Sustainability is about:

• Focusing on what’s matter

• Turning impacts and challenges into opportunities

Using sustainability as a growth platform and a competitive advantage