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Feature stories Who we are How we work What we create About report 161 3M 2021 Sustainability Report | #improvinglives
Every year, 3M calculates our GHG inventory according to approved internal procedures that are updated as needed to correspond with current calculation methodologies. However, whenever a methodology change is implemented, 3M will, wherever possible, recalculate the prior year’s GHG inventories to assure that past and current-year GHG inventories are comparable. Where this is not possible, 3M will either call this out or assure that the difference is not material. These quality system elements and procedures, coupled with a robust internal and third-party review of our emissions, help 3M’s GHG inventory to be aligned with the core principles of relevance, completeness, consistency, accuracy, and transparency. GHG emission reductions are achieved through a variety of methods: improving process and equipment efficiency, upgrading equipment, reducing our demand for energy use, increasing our use of renewable electricity, and implementing and maintaining emission control technologies. These methods, and more, are integral to the company’s overall success and assist us with the challenge of helping to address global climate change concerns. For an example of GHG emissions reduction see the Zwijndrecht site spotlight.
GHG emissions attributable to our suppliers and customers (Scope 3) 3M has been developing our Scope 3 GHG emissions inventory since the WRI and the WBCSD published the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard in September 2011. Even before its release, 3M participated in the pilot of the standard, which includes requirements for calculating GHG emissions for 15 separate categories of emissions sources, both upstream and downstream of our own operations.
According to the GHG Protocol Scope 3 Calculation and Guidance, a company that produces intermediate products with many potential downstream applications, each with a potentially different GHG emission profile, cannot reasonably estimate the downstream emissions associated with the various end uses of these products. The methodology did not even exist to calculate full Scope 3 emissions for a company with 3M’s complexity, including 55,000-plus heavily diversified products across a large variety of industries and potential end-use cases.
Rooted in scientific exploration and the belief that every problem has a solution, 3M embarked on a journey to calculate these downstream Scope 3 GHG emissions. We base our decision-making on sound science, and in 2019, we developed methodologies to calculate our emissions for Scope 3 Categories 9-12.
The first step was compiling the data for the more than 55,000 3M products, including the quantity sold, the size or mass of the product, and the use applications. Next, working with Anthesis Group, we analyzed data from the products to prioritize those with a material Scope 3 GHG footprint and identified 300 unique categories for further analysis based on the composition and use of each product. Once emission factors were determined for each use scenario, we worked to calculate estimated Scope 3 emissions for each of the 300 product categories. Based on the best available science, estimated Scope 3 data uncertainty is ±50% (WRI/WBCSD, GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard, 2011).
In 2020, our focus shifted to refining data accuracy and third-party assurance. Through these efforts, we identified our next priorities, and this year, we have expanded our Scope 3 emissions reporting to include Category 9 in this report. Moving forward, increased customer collaborations will enable 3M to better understand and help reduce emissions from processing, use, and end-of-life treatment. This will help us advance the science and further improve the accuracy of our estimations for Scope 3 Categories 10-12. We plan to report on results from these efforts, as well as additional planned actions, in future communications.
Evaluating customer GHG emissions reductions.
To track progress toward our 2025 GHG customer goal, 3M has a process in place to develop reasonable estimates for avoided emissions associated with the use of select 3M products. This estimation procedure is based on the ISO 14064-2 standard for determining GHG emissions reductions. It provides a framework for the estimation of emissions from the 3M product scenario (referred to as the “project scenario”) in relation to a baseline scenario.
GHG emission reductions are achieved through a variety of methods.
Feature stories Who we are How we work What we create About report 162 3M 2021 Sustainability Report | #improvinglives
We start by defining the boundary of the 3M product scenario as extraction from nature through the end of the product use phase (product end-of-life or disposal is included where reliable information is available). The GHG emissions for this scenario are then estimated using high-level estimates and average data. For example, manufacturing emissions may be determined based on the average energy use per pound of all products produced at a manufacturing site, rather than by determining the emissions through detailed calculations using product-specific information.
The same boundary is then used for the estimation of GHG emissions for the baseline scenario. Because the data sources may be different than the 3M product scenario, we apply conservative assumptions as needed, where “conservative” is defined as a choice that results in the minimum GHG emissions for the baseline scenario. For example, if emissions data is not available for the production of a material included in the baseline scenario, we assume the emissions for this material to be zero. In some cases, there is no equivalent to the 3M product. In these cases, the baseline scenario is the absence of the 3M product entirely. The result is a comparison that conservatively estimates the potential impact of the 3M product.
Due to the estimated nature of the data used, the uncertainty for these studies is ±50%, which approximates data of fair to good quality as defined in the WRI/ WBCSD Product Life Cycle Accounting and Reporting Standard Quantitative Inventory Uncertainty Guide.
Air quality management.
An important component of 3M’s sustainability strategy is our commitment to improving air quality globally.
As a company that uses many solventbased materials, 3M inherently releases volatile organic compounds (VOCs) from many of our manufacturing processes. Because of this, many of our sites require permits with rigorous VOC tracking requirements. Even where tracking is not required from a regulatory perspective, 3M voluntarily tracks VOC usage and emissions from major sources of emissions in order to identify further opportunities for reduction. 3M has developed internal programs to minimize its VOC emissions.
We track and report emissions based on raw material usage, engineering estimates, and stack test data.
For many 3M manufacturing processes, nitrogen oxides (NOx), sulfur dioxide (SO2), carbon monoxide (CO), hazardous air pollutants (HAPs), persistent organic pollutants (POPs), and particulate matter (PM) are emitted as products of combustion. These pollutants, which are listed on many environmental permits for specific site operations, are tracked and reported externally, where required, by federal, state, or local regulations for individual sites. 3M internally tracks all fuel usage and calculates the combustion emission rates using accepted emission factors.
Global volatile organic compound (VOC) emissions.
Metric tons per MM $USD net sales as calculated in accordance with ISO 14064-2 and 3M-developed procedures. Since 2015, this has resulted in an avoidance of nearly 75 million metric tons of CO2 equivalent emissions through the use of select 3M product platforms. This avoidance represents only a portion of our product portfolio. Various films and food safety products are examples of the select products included in this evaluation. The list will continue to expand as a result of the Sustainability Value Commitment requirement.
According to our calculations, in 2020 alone, our customers avoided emitting 16.6M metric tons of CO2 equivalents through use of select 3M product platforms 0.10 0.25 0.30 0.35 0.05 0.15 0.20 2016 2018 2019 2020 2017 2010 2005 0.00.
CO2.
Feature stories Who we are How we work What we create About report 163 3M 2021 Sustainability Report | #improvinglives
Main VOC by source type • 3M’s VOC emissions are primarily attributed to coating lines • Reactors and mixing are also significant sources of VOC emissions.
VOC by site • 90% of our sites emit less than 100 tons per year VOC • 35% of our sites emit less than 1 ton per year VOC.
Implementing and maintaining pollution control 3M has made significant progress in reducing air emissions — at the source and by improving process efficiencies. Where emissions cannot be reduced within the process, 3M installs and maintains air emission control equipment as required by federal, state, and local regulations. We evaluate all equipment options, select those that are the most environmentally effective and cost-efficient, and properly operate emission control equipment. Technologies include thermal oxidization, solvent recovery, carbon adsorption, biofiltration, electrostatic precipitators, baghouses, scrubbers, and cyclones.
Clean Air Asia partnership 3M partnered with Clean Air Asia, the international non-governmental organization focused on science-based air quality solutions for Delhi, India, and Manila, Philippines. For 2020, the focus in both cities was to develop local government capacity for managing air quality and addressing emission sources through developing, in Manila, and updating, in Delhi, science-based clean air action plans.
In Manila, this involved collaboration with the Manila City government to install particulate matter monitoring sensors in selected locations around the city, share the resulting information with policymakers and the public, as well as: • Understand current air quality levels • Build an emission inventory from fuel combustion sources from industrial, mobile, residential, and commercial activities • Map health data on air pollution impacts on mortality and morbidity in the city of Manila.
The data showed that improving the air quality in the city can contribute to the continued improvement of the health of its citizens, and it became the basis of the city of Manila’s clean air action plan. The plan identified priority control measures for the city’s pollution sources.
Ozone depleting substances.
The Montreal Protocol is the first worldwide agreement designed to protect human health and the environment against the adverse effects of the depletion of the stratospheric ozone layer. The agreement identifies the list of ozone depleting substances (ODS) that are targeted for control practices, reductions, or total phaseouts and provides a phaseout schedule. In addition, some countries have established regulations regarding the management of refrigeration appliances.
3M has established requirements that provide a framework for how 3M operations are to manage their refrigeration appliances containing ODS, in the context of applicable international protocols, local regulations, and current and future economic impacts. These requirements include conformance to the Montreal Protocol, when applicable.
In Delhi, Clean Air Asia studied the air quality trends and air pollution sources in 13 hot spots with the Delhi Pollution Control Committee (DPCC) as its partner. This assessment was based on perception surveys, one-on-one consultations with relevant stakeholders, and analysis of scientific data and information from the DPCC. Based on the takeaways and analysis that emerged from the hot spots assessment, the project identified strategic interventions for enhancing air quality for implementation by the DPCC, foremost of which was to reduce pollution from motor vehicles, road dust, and garbage burning.
Finally, as part of the project’s knowledge-sharing component, 3M, the Association of the Indonesia Municipalities, and Clean Air Asia co-organized a peer-to-peer learning session for over 100 participants in Asia and the U.S. Clean Air Asia continued to build awareness and engagement throughout the year.
3M has made significant progress in reducing air emissions — at the source and by improving process efficiencies.
Feature stories Who we are How we work What we create About report 164 3M 2021 Sustainability Report | #improvinglives
Looking forward.
Climate change is one of the greatest global challenges we face as a society, and we all must take action now — for our climate and our communities. Our Strategic Sustainability Framework directs our efforts to areas where 3M can make the biggest impact.
Within the Science for Climate pillar of this framework, we will continue to focus on innovating to decarbonize industry, accelerating global climate solutions, and improving our environmental footprint. We’ll continue to drive climate solutions in our operations, in our products, and in communities around the world. We will use the IPCC AR6 Climate Change 2021: The Physical Science Basis Report to inform our climate strategy.
In our operations, we will work toward our commitment to achieve carbon neutrality by 2050. We will also continue to move toward 100% renewable electricity at all global sites. Specifically, we will continue to evaluate what will improve additional aspects of energy efficiency, what organizations can help us move to a total renewable electricity portfolio, and what collaborations with utility companies can help us reach our ultimate destination.
For our customers, we will develop and launch products to help them reach their sustainability goals by improving energy efficiency, increasing renewable electricity, reducing emissions, and more.
For our communities, we will continue to partner with others to help drive climate solutions globally.
Get updates and learn more about our ongoing work aligning to the 3M Strategic Sustainability Framework.
We’ll continue to drive climate solutions in our operations, in our products, and in communities around the world.
Feature stories Who we are How we work What we create About report 165 3M 2021 Sustainability Report | #improvinglives
Our commitment.
Each step in the supply chain is an opportunity to assure alignment with our corporate vision of improving every life. This includes benefits like employment, embracing diversity, and community building as well as mitigating risks whether they are related to labor, environmental, health and safety, ethical practices, or management systems. Our commitment, from top leadership down, is to achieve synergy across our supply chain with our own corporate values. We expect our suppliers to be transparent about their environmental and social practices, provide ideas for improvement, and work with us to transform our shared value chain.
At 3M, we set a high bar for our company regarding environmental and social governance, and we expect the same from our suppliers. 3M follows the Organisation for Economic Co-operation and Development (OECD) Due Diligence framework for all of our responsible sourcing activities. The 3M Supplier Responsibility Code (SRC) is based on 3M’s corporate values for sustainable and responsible operations and aligns with the Ten Principles of the United Nations Global Compact, of which 3M is a participant. The SRC is also consistent with the Responsible Business Alliance (RBA) Code of Conduct.
Our Due Diligence Management System consists of the following elements, which guide our continuous improvement efforts.
Suppliers.
Helping our supply chain extend our commitment to sustainability 3M supply chain Due Diligence Management System.
Report.
Report on supply chain due-diligence activities.
Verification.
Audit supply chain due diligence.
Values.
Establish strong policies and management systems.
Transformation.
Design and implement a strategy to respond to identified risks.
Transparency.
Identify and assess risks in the supply chain.
Feature stories Who we are How we work What we create About report 166 3M 2021 Sustainability Report | #improvinglives
Strong policies aligned with our values.
The SRC outlines 3M’s foundational social and environmental expectations in the following areas: • Labor. Requirements align with the 3M Human Rights Policy and include important concepts like freely chosen employment (no forced, bonded, or trafficked labor), restrictions on working age (no child labor), and appropriate working hours and wages. Setting these expectations helps assure our suppliers’ actions will reflect 3M’s values on human rights as well as the values underlying the International Labour Organization (ILO) and laws, such as the California Transparency in Supply Chains Act, the United Kingdom Modern Slavery Act 2015, the U.S. Federal Acquisition Regulation (FAR) on forced labor and human trafficking, and Australia’s Modern Slavery Act 2018. To learn more about these topics, see the Human rights section and the 3M Modern Slavery Statement.
• Environmental, health, and safety. We expect our suppliers to care as much about the health and safety of their workers and their communities as 3M does and to implement proper procedures and controls to protect them as well as the environment in which we live.
• Ethics. Expectations align with the 3M Code of Conduct and hold our suppliers to the same high standards of honesty and integrity. Suppliers must prohibit any form of bribery and corruption, and prevent conflicts of interest.
• Management systems. We expect our suppliers to establish processes to systematically conform to the 3M SRC, as well as all legal requirements, and to commit to continuous improvement.
The SRC establishes 3M’s expectations for new and existing suppliers anywhere in the world and for any supplied material or service. Our supplier vetting process includes a review of the SRC expectations and reinforcement that supplier programs and practices, as well as those of their subcontractors supplying products and/or services, conform to standards consistent with the SRC. Our global supplier agreements have incorporated SRC expectations.
We expect our suppliers to establish and implement their own relevant policies and programs in alignment with this SRC and to enforce these expectations with their own suppliers, thereby promoting our high sustainability standards up our supply chains.
3M’s vice president of Strategic Sourcing & Packaging Solutions (SS&PS) is accountable for 3M’s Responsible Sourcing program. The leader of our global responsible sourcing activities reports to the vice president of SS&PS. Executive leaders of departments (including EHS, Ethics & Compliance, Corporate Auditing, Strategic Sourcing, Legal, Sustainability, and Human Resources) are provided program updates at least twice a year, and Strategic Sourcing leadership is updated quarterly on the program’s status and results. Both groups have the opportunity to provide input on the various program activities. 3M’s Science, Technology & Sustainability Committee of the Board of Directors reviews company sustainability and EHS policies and programs for compliance with all applicable laws and regulations.
15.
The Supplier Responsibility Code is currently available in languages.
Supplier risk assessment and supply chain transparency.
As stated in our supplier contracts, in addition to full compliance with all applicable laws, including environmental laws, we expect our suppliers to integrate environmental responsibility into their operations. Suppliers should work to minimize adverse effects on the community, environment, and natural resources while safeguarding the health and safety of workers and the public. Additional information can be found at 3M Supplier Direct.
Our general supplier performance verification process begins with a self-assessment questionnaire (SAQ). The SAQ helps 3M understand supplier programs and determine whether they conform to 3M expectations. The SAQ focuses on the following topics: labor (including right to freedom of association and collective bargaining), health and safety, environmental, ethics, and management systems. An on-site assessment may be conducted by 3M or a third party to assess the supplier’s level of conformance with 3M’s expectations. If deficiencies are identified, they will be addressed through an SRC Corrective Action Preventive Action (CAPA) process. Follow-up on the CAPA may include announced or unannounced assessments.
Feature stories Who we are How we work What we create About report 167 3M 2021 Sustainability Report | #improvinglives
If the assessment identifies gaps or findings, and if a supplier is not able or willing to resolve them, the CAPA process would escalate to a corporate Supplier Corrective Action Request (SCAR) that would involve sourcing, area manufacturing, and supply chain or business personnel engagement. This assures appropriate resolution and conformance to 3M’s requirements. If a supplier is unwilling to work with 3M on the identified gaps or is unable to close the issues within a reasonable timeframe, alternative actions are determined with a cross-functional business team to elevate and resolve the situation.
The SRC outlines supplier expectations relating to grievance mechanisms. Anyone who has a concern involving 3M can use the 3MEthics.com site as an alternative way to report a concern. The concern can be reported anonymously if desired.
Additional expectations for higher-risk value chains.
In addition to the global SRC expectations for all suppliers, certain areas warrant additional and specific formal expectations to drive more sustainable, responsible practices. This includes our use of certain minerals with the potential to be sourced from conflict-affected and high-risk areas, our use of timber-based products and other plant materials (pulp and paper), and all new suppliers in higher-risk countries in areas such as Asia Pacific, Latin America, or parts of Europe, Middle East, and Africa. See more on our risk identification process in the Responding to risks and transforming our supply chains section.
Focus: responsible minerals sourcing.
A prioritized area in our raw material supply network is the responsible sourcing of minerals. 3M deplores the violence and inhumane treatment that has occurred in the Democratic Republic of Congo, adjoining countries, and other conflict-affected and high-risk regions as defined by global regulatory bodies. 3M is committed to supporting responsible sourcing of minerals that contain but are not limited to tin, tantalum, tungsten, gold, and cobalt from all such regions. Additional information can be found in our Responsible Mineral Sourcing Policy and in Supplier Direct, Supplier Requirements section on 3M.com.
Focus: pulp and paper sourcing 3M has prioritized pulp and paper products as an area that warrants additional formal expectations because of potential environmental risks, such as deforestation and habitat loss; potential human rights issues, such as infringement of Indigenous peoples’ rights; and potential unsafe labor practices. As a global paper purchaser and sustainability leader, 3M is well-positioned to positively influence practices throughout the forest products supply chain. We adopted our Pulp and Paper Sourcing Policy in 2015 to set standards of excellence for our suppliers through all tiers of supply from the forest. Our Pulp and Paper Sourcing Policy and guidance document is available in seven languages. Additional information can be found on the 3M Sustainable Forestry website.
Supplier Diversity 3M is committed to diversity, equity, and inclusion, and we strongly encourage working with diverse suppliers and small businesses across our sourcing organization. We back up our commitment through initiatives that directly seek out diverse companies to support 3M’s business needs. Equally important, we recognize that diversity is a core value that helps strengthen our competitiveness and provides opportunities for new ideas and fresh perspectives.
3M has a long-standing commitment to sustainable business practices and to supporting the economic success of our communities, working with both small businesses and diverse suppliers. Diverse suppliers in the U.S. are identified by one or more of the following classifications: • Small Business Enterprise • Women-Owned Business Enterprise • Women-Owned Small Business Enterprise • Minority-Owned Business Enterprise • Small Disadvantaged Business Enterprise • Veteran-Owned Business Enterprise • Veteran-Owned Small Business Enterprise • Service-Disabled Veteran-Owned Business Enterprise • HUBZones.