What is Green?

Jordan Doria Manager, Stakeholder Engagement Manager Center For Energy Efficiency and Sustainability

IPAI Global & Dupont Green Week May 17th, 2012

Ingersoll Rand Overview

A $14 billion diversified industrial company Publicly-held; NYSE:IR

More than 52,000 employees worldwide in 54 countries

Operations in every major geographic region Strategic brands are #1 or #2 in their markets Products and services for commercial, industrial and
residential markets

2 Important Considerations

We are a Business to Business (B2B) Company

The vast majority of our products are resource (energy) consumers

What Isnt Green?

No single, universally accepted definition of green More than 431 green labels exist

Green claims regulated but no single way to determine green exists?

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Seven sins of greenwashing from terrachoice.com FTC green guides from FTC.gov Green claim estimate from ecolabelindex.com

Can we Determine What is Green?

Regulating what can be called green not the same as determining what actually constitutes green

Absence of clear, external definition requires answering the question of green internally

Green Order Study

Trends

Third-party eco label and certification space growing Increased confusion in market

Implications
Rigorous criteria and transparency of data/claims are extremely important for legitimacy

Most competitors focus on 1-2 dimensions

Most competitors claims are focused on use-phase Regulatory guidelines are strengthening

Business units must have (build) capabilities to implement analysis

Agencies are increasing enforcement actions

How to Answer What is Green?

Creation of portfolio of superior products in 2011 Verifiable, world-class environmental benefits Demonstrated superior customer benefits Lifecycle consideration + Tradeoffs avoided Rigorous process and criteria
o criteria sets the benchmark for product design and development o Vetted by ~10 outside parties, corporate and NGO o representatives from each sector and major corporate functional areas provide oversight

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Sustainability in Innovation

Outcome Driven Innovation

Customer Needs Identification Phase Gate Sustainability Readiness Checklist

Premium Green Portfolio

ProductLevel Sustainability Index

Project 1 Project 2 9 1
Energy Efficiency GHG Emissions Criteria Pollutants / Materials of Concern Disposal Recycled Content Resource Efficiency Normalized sub-score Energy Efficiency GHG Emissions Criteria Pollutants / Materials of Concern Disposal Recycled Content Resource Efficiency Normalized sub-score Energy Efficiency

MANUFACTURING & SUPPY CHAIN

Product-Level Sustainability Index

PRODUCTS THAT DEMONSTRATE WORLD CLASS PERFORMANCE IN ONE OR MORE CATEGORIES MAY BE CONSIDERED FOR OUR GREEN PORTFOLIO

How to embed sustainability into business operations

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3 1 3 3 1 3 1 1 1 33 3 1 19 3 3 3 3 3 3 3 3 1 3 33 9 1 26 3 3 3 3 3 1 3 3 42 3 1 29 1 1 1 9 1 3 3 3 42 9 33 34.3 24.1
Disposal Recycled Content Resource Efficiency Normalized sub-score Energy Efficiency GHG Emissions Criteria Pollutants / Materials of Concern Disposal Recycled Content Resource Efficiency Normalized sub-score Normalized Product Sustainability Score GHG Emissions Criteria Pollutants / Materials of Concern

TRANSPORTATION & PACKAGING USE END OF LIFE

Role for Life Cycle Assessment

Most holistic analysis possible for a product and thus most indicative of total environmental impact
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Closing Thoughts
Green is evolving and no clear, comprehensive, universally applicable metrics exist Green for B2B companies and those whose products are resource consumers is different

Green can contribute to market success

LCAs are the best available tool today to give us a holistic picture of the environmental impact of a product Companies can apply their own rigorous criteria and standards to determine what is green for them

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Contact Info

Jordan Doria Ingersoll Rand Center for Energy Efficiency and Sustainability jdoria@irco.com 202-412-5359
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