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Conflict mineral supply chain traceability 2019 percentage.
Pulp and paper supply chain traceability 2019 percentage.
How we work 182 183 3M 2020 Sustainability Report #improvinglives Suppliers
Completed.
We partner with a third-party provider, Earthworm Foundation (EF), to help us review the information we obtain from our supplier surveys and combine that with geography and industry-specific knowledge to conduct “desktop” risk assessments of our supply chains. We use these assessments to prioritize further engagement and to learn more about our suppliers’ responsible sourcing and sustainable forestry practices. This deeper engagement could take the form of a series of web conferences, in-person meetings, or field assessments at the mill and/ or forest level. We do not limit this engagement to our direct suppliers. In fact, as appropriate, we will work directly with indirect (Tier 2 and Tier 3) suppliers on policy conformance verification work, with a goal of involving our direct (Tier 1) supplier(s) in these activities whenever possible.
With the help of EF, we have so far conducted.
Some of those assessments reviewed Tier 2 pulp mills and were also attended by a Tier 1 supplier. 3M’s participation in supplier field assessments with EF helps us to understand firsthand the challenges faced by pulp and paper companies and forest managers around the world. This, in turn, enables us to participate actively in developing solutions and advancing conversations about responsible sourcing and sustainable forestry.
Each assessment results in a comprehensive report detailing the supplier’s performance compared to our policy requirements and provides action items to address any performance gaps. We expect each supplier to develop corrective action plans with reasonable timelines and concurrently continue to collaborate with 3M on the resolution of identified opportunities. More information on these assessments and other collaborative efforts can be found in our Pulp and Paper Sourcing Policy Progress Reports, including: • Training in Brazil: In April 2019, EF, 3M, and other EF members brought together six major Brazilian forestry companies for an intensive training course, “Free, Prior, and Informed Consent (FPIC): From Theory to Practice.” FPIC is a specific right that pertains to indigenous peoples — it allows them to give or withhold consent to a project that may affect them or their territories. With a better understanding of the theory behind FPIC, as well as the formal FPIC protocols, companies can greatly improve how they engage with communities to prevent and/or resolve social conflicts • Great Northern Boreal Forest: 3M and EF are committed to working with suppliers to promote the protection of high conservation values in the Great Northern Forest (the northernmost forests of the globe) and the ability of the forests to provide wildlife habitat, ecosystem services, and natural beauty for generations to come.
Working on overall policy conformance for suppliers.
In 2016, 3M and EF created a Policy Conformance Self-Assessment Tool with the purpose of having the 3M Tier 1 suppliers assess themselves against all aspects of the 3M Pulp and Paper Sourcing Policy. Since the creation of this tool, we have been partnering with our Tier 1 suppliers to have them complete this selfassessment. In addition to the selfassessment, we have created and implemented a Pulp and Paper Sourcing Policy Scorecard, which will allow 3M to evaluate a supplier against all aspects of the 3M policy. We began rolling out this scorecard with prioritized suppliers in 2019, completing evaluations of suppliers in each region. The results of the evaluation provide 3M further insight into each suppliers’ conformance status while also highlighting opportunities and areas to focus improvement. The goal is that the evaluation results create a path to work together to further advance the Sustainability of the global pulp and paper supply chain.
Through this partnership and engagement with our suppliers, we have seen many suppliers make significant progress in their own programs, ranging from enhancing their own policy(s) and due diligence management systems to creating policies that did not previously exist.
We have seen many suppliers make significant progress in their own programs.
14 field assessments across all regions.
Suppliers.
Pulp and paper field assessments covering more than 16 million hectares.
How we work 184 185 3M 2020 Sustainability Report #improvinglives Suppliers
Collaboration for change 3M Brazil is a signatory to the National Pact to Eradicate Slave Labor and joined InPACTO — the Institute for the National Pact — a trade association focused exclusively on collaborative efforts among members, including 3M, and committed to the goals of the National Pact.
Supplier recognition.
Our supplier recognition program seeks to recognize those outstanding suppliers that help us succeed in accomplishing our Vision of 3M Technology Advancing Every Company, 3M Products Enhancing Every Home, and 3M Innovation Improving Every Life.
Each year, 3M sourcing professionals nominate exemplary suppliers to be recognized for world-class performance based on strategic support, contract compliance, actions taken to improve 3M’s competitiveness, and overall supplier performance.
in its global supply base for worldclass performance in providing products and/or services.
Learn more about the Supplier of the Year Award.
Conservation in the Carolinas.
In May 2017, 3M helped launch the Carolinas Working Forest Conservation Collaborative (CWFCC) along with the American Forest Foundation (AFF), International Paper, and Procter & Gamble. The biggest accomplishment to date has been the ability to assemble and mobilize the right local partners who have a keen sense of the challenges family forest owners are facing and the expertise to reach and motivate them to take forest stewardship actions to enhance habitat. Find more details on AFF’s website.
Family Forest Carbon Program.
In 2019, 3M became a proud partner of the Family Forest Carbon Program (FFCP), a new approach to climate change mitigation developed by the American Forest Foundation and The Nature Conservancy. The FFCP aims to increase the carbon storage of familyowned forestland while creating a new market and source of income for the families that dedicate time and effort to their forest management. Our support will expedite family forest owner outreach and enable family forest owners to take action on their land, providing measurable carbon benefits as well as important cobenefits that improve wildlife habitat, water quality, wildfire risk reduction, and more. 26 suppliers among thousands.
In 2019, 3M formally recognized.
We recognize the supply chains of many materials involve both risks and opportunities. By collaborating with strategic partners, we are continuing to improve our supply chain management systems: • 3M is conducting a LSS project to expand the use of our third-party resources to conduct more assessments. The project is global in scope and will positively impact the methodology, resources, and results of our efforts • We will increase efforts with providers of pulp and paper to improve and evaluate their understanding and conformance with 3M’s environmental and social expectations, which may include field visits. We are investing in transformation projects that will enhance the global pulp and paper supply chain • 3M is committed to expanding our due-diligence efforts for higher-risk materials to further mitigate risk to our business and advance responsible supply chains • 3M will continue to streamline and improve its supplier diversity program • We look forward to continuing 3M’s new partnership with the Family Forest Carbon Program • In October 2020, 3M will host a sustainable supplier expo, featuring dozens of supplier Sustainability solutions that will help accelerate our Sustainability Value Commitment.
In 2021, the EU Conflict Minerals Regulation will take effect and will expect companies to take a wider view of their sourcing practices. 3M’s Conflict Minerals program will expand to focus explicitly on regions beyond the Democratic Republic of the Congo. 3M’s SRC covers foundational expectations for our suppliers by taking a holistic approach to supply chain due diligence in areas of labor, environmental health and safety, ethics, and management. Members of our European Government Affairs Team have been closely aligned with industry and government to understand the scope, impacts, and timing of the new European regulation. The team has proactively assessed potential applicability, so 3M will be best prepared to implement the new rule.
Looking forward.
How we work 186 187 3M 2020 Sustainability Report #improvinglives Suppliers
Introduction 190.
Our customers 192.
Innovation management 198.
Our products 208 What we create.
What we create Introduction 188 189 3M 2020 Sustainability Report #improvinglives
We have established aggressive goals, ranging from requiring
to energy efficiency, to communitywide approaches to water management and to helping our customers reduce their greenhouse gas emissions. We have also set Sustainability goals around building a diverse workforce and educating individuals on worker and patient safety in health care and industrial settings.
Our customers’ challenges are our challenges. 100% of new products to obtain a Sustainability Value Commitment.
Using our 51 Technology Platforms and collaborative culture, our people apply their talent to combine our technologies across businesses, creating unique solutions for our customers and society, all in support of the greater good.
We are committed to connecting our fundamental strengths to our customers.
What we create Introduction 190 191 3M 2020 Sustainability Report #improvinglives Introduction
Our customers Partnering with customers to innovate and grow.
Our commitment.
Whether it’s technology, manufacturing, global capabilities, or our brand, we are committed to connecting our fundamental strengths to our customers. We engage them and delve into their processes, their problems, and their promises to their customers. We bring our technology to them, along with a deep domain of expertise, and we deepen it further by working side by side with them as partners.
Throughout the process, we not only meet their expressed needs — we are often able to identify and address unarticulated needs. In both cases, we create solutions for them and, at the same time, innovative growth platforms for 3M.
Additional details can be found in the Innovation management section.
Creating competitive advantages for customers and for 3M.
At 3M, many of our products are either specified (designed for the customer) or regulated (meeting specific performance and other requirements). Working in both categories carries us through multiple commerce channels, distribution models, direct models, retail models, and, increasingly, e-commerce. In every channel, we maintain a customer-first focus, making sure we’re in a position to deliver value when, where, and how they want it.
Building Sustainability into all new products.
In 2019, we strengthened our 2025 goal (invest to develop more sustainable materials and products to help our customers reach their environmental goals) by requiring that 100% of our products entering the new product commercialization process include a Sustainability Value Commitment (SVC) that demonstrates how it drives impact for the greater good.
By embedding Sustainability into our R&D process, our brands, and the mindset of our customers and suppliers, we’re able to move 3M’s growth to new levels and advance our commitment to improving our business, our planet, and every life. For that reason, we are combining the reporting of our 2025 goal with our new Science for Circular Sustainability Value Commitment goal.
Additional details can be found in the Innovation management section.
We will continue to support empowerment and enrichment for global health and safety issues through our commitment to improve the health and safety of people worldwide. To measure progress against this goal, we will track the number of training experiences delivered by our Health Care and Personal Safety Academies. Our actions.
Four strategic priorities deliver value for our customers: portfolio management, transformation, innovation, and people and culture.
In all, we work to understand our customers’ business models, what they have promised their customers, what our role is in the value chain, and how we can help them deliver on their promises. It is our Vision, as we aspire to advance every company, enhance every home, and improve every life.
Portfolio management.
To enable our company to better serve global markets and customers, 3M realigned from five to four business groups in April 2019.
Global Capabilities.
Goal: Provide training to five million people globally on worker and patient safety by 2025.
Science for Community.
This new structure supports and advances our four strategic priorities. We are strengthening our ability to meet the fast-moving needs of our customers. Our new alignment will leverage our business transformation progress, accelerate growth, and deliver greater operational efficiencies.
Portfolio management continues to be a key to the way we are prioritizing businesses to emphasize the greatest value creators in our portfolio and how we’re looking at potential acquisitions, divestitures, and partnerships.
Transformation: continuing a critical journey.
In 2019, we made great progress on our transformation journey, which leverages our strengths in technology, manufacturing, global capabilities, and brand to provide a more positive overall experience for our customers. Specific accomplishments include: • Successfully deployed ERP (enterprise resource planning) systems in Europe and the United States • Simplified, standardized, and redesigned business processes • Advanced streamlined, end-to-end engagement with customers • Created value through new service models.
Moving forward, we will work to enhance customer service, increase value creation, leverage ERP capabilities, streamline deployments, and expand the utilization of data and analytics.
What we create 192 193 3M 2020 Sustainability Report #improvinglives Our customers
Insights.
Customer Needs.
Technology Domain Expertise.
Customer-inspired innovation.
Technology itself is not sufficient to create differentiated products and solutions. Our innovation truly comes from the confluence of customer and market insights, technology, and a culture of collaboration and entrepreneurship. We strive to invent products that are not only new but useful. That is why 3M scientists work directly with customers to solve their unique challenges. We take the time to get to know them, learn how they live and work, and understand what we can do to improve their lives. Collaborating with customers assures us we are in tune with their needs. Our most successful products are infused with strategic customer insights throughout the entire product development process.
Collaborating and creating locally.
When collaboration results in meaningful innovation — solving real problems — it can be awe-inspiring. To get there, we believe it’s essential to be close to our customers.
That’s why 3M has 56 customer technical centers across the globe, where our customers can experience firsthand the breadth of 3M technologies and how they can benefit from them. We also have laboratories and application engineering capabilities in 50 countries where our scientists work closely with our customers to develop solutions for their specific problems.
Some of the problems addressed in our technical centers and labs are connected to regional and local issues. Globally, for example, rapid population growth in urban areas is creating challenges related to energy efficiency, clean water, and environmental protection. Our local scientists leverage 3M technologies to develop relevant solutions that are unique to their region, often collaborating with local customers. See how 3M India addressed a local public safety issue in our feature story, “Cooler trains.” 3M Design Centers are located in the United States (at 3M’s headquarters in St. Paul, Minnesota), Italy, Japan, India, and, new in 2019, China. The centers provide 3M employees with new ways to incorporate design thinking into graphic and industrial design, user experience, and design research. Bolstered by a global design organization with
3M’s Design Centers help spark new ways to enhance the brand experience, advance innovation, and create customer-driven solutions that positively impact the world.
140 designers around the globe,
We find that collaborating with customers in their own spaces can be extremely beneficial. For example, in 2019, 3M partnered with a major academic health system based in the Midwest on a project designed to drive insights for service and solutions. Together, we tracked a high-volume medical product through every stage of the supply chain to understand their needs related to Sustainability. The immersive three-day research activity involved a multidisciplinary team representing Sustainability, Packaging, Engineering, Tech Service, Front End Innovation, Industrial Design, Supply Chain Management, health care providers, and facility operations. The team followed the journey of a 3M medical product from the inventory center to the supply rooms within the hospitals to the recycling and disposal centers. At each step, the team observed the flow of materials, had conversations with the stakeholders in each department, and conducted in-depth interviews.
One notable finding was that while those in Purchasing at the hospital are aware of a product’s Sustainability benefits, the health care providers who use the products are not. A key recommendation was to incorporate relevant Sustainability information into product training — a helpful insight for both the customer and 3M.
Understanding the full life cycle of medical products within a health care system, the touchpoints along the journey, and the different waste streams they enter has brought valuable learnings back to 3M, helping us make continuous improvements to the solutions we deliver to our customers.
“ We focus so much on the doctor, nurse, and patient — but everyone from the dock worker to the waste handler interacts in some way with our products.” — Heather Webb Innovation Strategy Manager 3M Medical Solutions Division.
Customer insights.
Customer-inspired innovation.
What we create 194 195 3M 2020 Sustainability Report #improvinglives Our customers
As a large and diverse global science company with customers spanning many industries and global markets, we have the opportunity to make an even greater impact in Sustainability. As part of our strategic focus on empowering Science for Circular, Science for Climate, and Science for Community, we will work to design a world where 10 billion people can thrive by applying boundaryless, collaborative science to reinvent the products, processes, and systems that improve every life.