Environmental Highlights

3M Corporate

3M’s Pollution Prevention Pays (3P) program

3M’s Pollution Prevention Pays (3P) program, celebrated its 32nd anniversary in 2007.? The program, established in 1975, seeks to eliminate waste at the source, where possible, and to reuse and recycle remaining waste materials. From 1975 through 2005, more that 6000 employee projects worldwide have prevented the generation of more than 2.5 billion pounds of pollutants and saved over $1 billion. The 3P program helps prevent pollution at the source – in products and manufacturing processes – rather than removing it after it has been created.

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3M’s Environmental Goals for 2005 - 2010

The environmental targets below were established as part of 3M’s Environmental Targets 2010 (ET’10) Program.? 3M established the following corporate environmental goals for 2010 using year 2005 base year normalized to net sales, except for 3P:

• Reduce Waste by 20%
• Reduce Volatile Air Emissions by 25%
• Improve Energy Efficiency by 20%
• Complete 800 3P projects

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Our Environmental Progress from 1990 – 2005 (based on total pound reductions)

Using a Year 2000 base year normalized to net sales.

• 95 percent reduction in volatile organic air emissions
• 94 percent reduction in US Toxic Release Inventory releases
• 10 percent reduction in solid waste

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3M’s Environmental Management System

3M’s Environmental Management System helps the company manage continuous environmental improvement and ensure compliance with 3M policies and government regulations around the world.? The system helps 3M maintain proper operations, verify performance and identify improvement opportunities.? In addition, 3M has 103 sites in 27 countries certified to the voluntary international ISO 14001 Environmental Management System Standard.

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3M’s Life Cycle Management (LCM)

3M’s Life Cycle Management (LCM) process helps the company manage environmental, health and safety issues for all stages of a product’s life cycle, from design and
manufacturing through customer use and disposal.? LCM is being integrated into
the processes for developing new products and improving existing products.? 3M has adopted a Life Cycle Management Policy requiring all business units to conduct LCM reviews for all new products and to conduct LCM reviews on existing products on a prioritized basis. LCM reviews of all existing products must be completed by 2010.

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3M Environmental Policy

3M Environmental Policy was adopted in 1975 and commits 3M to continue to:

• Solve its own environmental pollution and conservation problems
• Prevent pollution at the source wherever and whenever possible
• Develop products that will have a minimum effect on the environment
• Conserve natural resources through the use of reclamation and other appropriate methods
• Assure that its facilities and products meet and sustain the regulations of all federal, state
  and local government agencies
• Assist, wherever possible, governmental agencies and other official organizations engaged in environmental activities

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Our Corporate Values and Sustainability

3M's sustainability policies and practices are directly linked to our fundamental corporate values:

• Act with uncompromising honesty and integrity in everything we do
• Satisfy our customers with innovative technology and superior quality, value and service
• Provide our investors an attractive return through sustainable, global growth
• Respect our social and physical environment around the world
• Value and develop our employees' diverse talents, initiative and leadership
• Earn the admiration of all those associated with 3M worldwide

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Energy and Greenhouse Gas Emissions Management

3M is committed to taking voluntary, responsible action to reduce greenhouse gas emissions (GHG). 3M set a goal to reduce our worldwide GHG emissions by 50% (from a 1990 base) by 2005*.? In 2004, 3M reduced worldwide, absolute GHG emissions by 39% from a 1990 base year.*?? In addition, 3M is partnering with the U.S. Environmental Protection Agency through the Climate Leaders program to reduce our U.S. greenhouse gas emissions by 30% (from a 2002 base) by 2007.? In 2004, 3M has reduced U.S. absolute GHG emissions by 30% from a 2002 base year.*

The emission reductions are being accomplished through energy efficiency, manufacturing process improvements, and additional pollution control equipment.? Since 1973, 3M has reduced U.S. energy use by 77% and reduced global energy use by 29% since 1998.

3M has received third-party verification of its greenhouse gas emissions inventory. 3M’s inventory was developed using the World Resource Institute’s/World Business Council for Sustainable Development’s GHG Protocol. 3M’s corporate-wide inventory includes emissions from the following sources:

• Direct emissions of carbon dioxide from stationary combustion of fossil fuels, waste, and solvents
• Indirect emissions of carbon dioxide from the use of electricity and steam
• Direct emissions of methane from wastewater treatment
• Direct emissions of carbon dioxide from 3M-owned and leased mobile sources
• Direct, process-related emissions of other greenhouse gases

* Due to data complexity, 3M’s 2005 GHG emissions inventory data will not be available until fall of 2006.

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3M Hong Kong

Advances to a Green Company of International Standards

3M Hong Kong and ISO 14000

Year 2006 marked an important "green" milestone of 3M Hong Kong Limited.

According to the ISO 14000, 3M Hong Kong established the environmental management system in which impacts of its products and services on environment are thoroughly assessed. Environmental protection policies and targets for waste-cut are then formulated.

3M Hong Kong was audited and crowned as a "green company" fulfilling the top international standards and accomplishing its purpose of sustainability in social, economic and environmental aspects.

For Internal: Establish systems, use resources wisely and prevent pollution

To ensure the environmental protection policies can be implemented efficiently, 3M Hong Kong has integrated a clear procedure to handle pollution complaints into its internal management system. And, items related to environmental protection are also included in the annual evaluation of its suppliers and contractors.

On the daily operation basis, 3M Hong Kong works diligently to reduce waste and promote smart use of resources.

Since paper is the most significant waste, recycle boxes and procedures of paper recycling are installed. As a result, the volume of paper being recycled is clearly documented and the effectiveness of paper recycling can be ensured. In addition, the company brochures, calendars and diaries will all be printed on recycle paper with soy ink. InnoVision, the company newsletter, has been published in electronic format.

It also participates actively in the campaigns launched by the Environmental Protection Department of the HKSAR Government. For example, recycling boxes for rechargeable battery are set up in the office. And, its IT department also supports the Computer Recycling Program by regularly donates the old computers to NGOs for reuse or recycling.

When handling dangerous products, 3M Hong Kong strictly observes the laws and regulations as well as the environmental guidelines of the HKSAR Government. Only products measured up to the standards will be imported and sold. Products classified as hazardous will be stored in the "dangerous goods stores", in accordance with the Hong Kong legislation.

In the laboratories, containers for collecting chemical wastes are put up to avoid improper disposal. Chemist lists are kept to record the storage and use of various chemicals. And, the staffs in the laboratories are well-trained in using various distinguishers and can act swiftly to prevent pollution when any possible chemical incident happens.

In order to raise the awareness of environmental protection among its staffs, 3M Hong Kong invited Friend of the Earth to organize a special seminar titled "What can we do to protect the Earth". It highlighted the importance of protecting the environment and showed the practical ways to a greener living.

For external: Take up citizen's responsibilities and promote green knowledge

3M Hong Kong has sponsored and supported various environmental protection groups, such as Friends of the Earth, The Hong Kong Sustainable Communications Association, WWF (Hong Kong), and China Exploration & Research Society in their works and activities in promoting green knowledge to the public.

In April, the top management joined the conferences organized by Eco-pages of The Hong Kong Sustainable Communications Association and shared the experience in implementing the environmental protection policies. And recently, 3M Hong Kong worked hand in hand with Friends of the Earth to promote the Power Smart Campaign. The messages of energy-saving and knowledge about preserving the natural resources are printed on 3M's recycling bins installed in the public area of the MTR stations.

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Life Cycle Management in 3M Hong Kong

With hundreds of new products introduced each year, 3M has a continuous flow of opportunities to add significantly to our environmental, health and safety progress. Therefore, new products must undergo the Life Cycle Management (LCM) review prior to commercialization.

3M's LCM policy is mainly implemented in R&D and production of products. The production, distribution and even discard of products after use by customers are factors to be considered. In the LCM review, 3M looks carefully into such issues as how the environment is affected, how the energy and resources are consumed, and how human health and safety are influenced.

Though there is no product R&D or production in 3M Hong Kong, we believe that LCM can be applied in the commercial processes. We specially set up a Six Sigma team to explore areas that can be reviewed by LCM. Finally, we decided to incorporate LCM to review the procedures of packaging and art design. Items to be evaluated are, for example, design of display boxes and shelves, promotional leaflets, packing carton, labels and the layout design of display venues.

When a marketing staff comes up with a new idea in packaging design, he or she has to consider the following questions: Is it a simple and minimal design? Can the recycled paper and soy paint be used for printing? Are the clauses concerning the minimization of impacts on the natural environment and the collection of recycled materials included in the suppliers' contracts? 3M also makes sure that the carton used is toxicant-free since regular spot checks are conducted.

Through the LCM review, 3M Hong Kong can select the most appropriate ways to conduct business and help to protect the natural environment as well as wisely use the resources at hand.

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