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Making a Difference: Our Journey of Transformation 2009 Environmental Sustainability Report

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Making a Difference: Our Journey of Transformation

2009 Environmental Sustainability Report

21

As a global marketer of consumer and commercial products, we create

innovative solutions that offer great performance and value. This focus

embodies the spirit of environmental sustainability – marketing and

manufacturing products that are long lasting, cost effective and help

consumers reduce their impact on the environment.

Newell Rubbermaid has developed a framework for sustainability that

enables us to make a positive difference in the world. Our policies

and practices integrate environmental well-being into all we do – from

research and innovation, to manufacturing and marketing to the end user.

Making a Difference

Each day, around the world, our products touch millions of people where they live, work and play.

Environmental sustainability will be

an important factor in the

long-term success of our business.

3 4

improvements made to our products and operations in 2009 reflect our efforts to address environmental issues of growing significance to our consumers, customers, shareholders, employees and neighboring communities.

As we look ahead, there are many opportunities to address environmental issues, from reducing energy use and greenhouse gas emissions to designing more sustainable products that meet the needs of our consumers and customers. Environmental sustainability will be an important factor in the long-term success of our business. As our programs evolve, our focus will remain on our vision and transformation as a global, consumer-focused company that invests in product innovations that deliver meaningful solutions. We look forward to continuing our journey and we are committed to maintaining our momentum.

Sincerely,

Mark D. Ketchum President and Chief Executive Officer

Our Journey of Transformation

CEO Message

At Newell Rubbermaid, our vision is to be a global company of Brands That Matter™ and great people, known for best-in-class results. In keeping with our vision, we are pleased to present our first Environmental Sustainability report to share our commitment to and progress in promoting environmental well-being in a manner that is consistent with our corporate vision and values.

2009 was a year of very difficult economic conditions. In spite of this, we were determined to remain focused on the three key areas of our business strategy: transforming our business model to generate sustainable growth through consumer-driven innovation, branding and marketing; strengthening our brand portfolio; and driving best cost and greater efficiency across the organization.

We view environmental sustainability as a contributor to achieving this strategy. Actions taken to integrate environmental sustainability into our consumer-driven-innovation and product development process will positively impact our future top line growth. Actions taken to reduce energy consumption and waste in our production facilities and eliminate unnecessary packaging of our products link directly to our strategy of driving best cost and greater efficiency and are adding to our bottom line. These actions and

5 6

Up to

80% RecycledMaterials

used in Paper Mate® Flexgrip Ultra® and

Write Bros.® ballpoint pens, and

Liquid Paper® DryLine Grip

correction tape.

Rubbermaid Home Products achieved

GreenGuard™Certification for its ventilated, wire-shelving closet line.

Majority of components in new line of Paper Mate® pens and pencils are

Biodegradable in Soil/Home Compost in about a year (disassembly instructions on package).

Customers realize up to

70% Water Savings from installation of Technical Concept’s AutoFaucet®

with touch-free design to help prevent the spread of germs.

Collaborated globally to leverage best

practices and committed to an average

5% EnergyReduction Goal for 2010 at our largest energy consuming manufacturing facilities.

2009 Highlights

7 8

In order to meet our commitments and respond to a changing global business environment, we have implemented a globally shared values system, and we trust and expect employees to live our values every day.

Our values are condensed into five key areas, each with a simple defining belief:

• Our People: The success of our company starts with our people.• Our Brands: Growing brands that matter to consumers is at the heart of

who we are.• How We Work Together: We work as a team and foster an environment

of global collaboration.• Results: We relentlessly strive to achieve best-in-class results.• Integrity: Acting with utmost integrity is the foundation upon which we

grow.

Our integrity value includes an underlying affirmation: “We value environmental sustainability in the decisions we make” – which is applicable to all employees. Living our values every day will enable us to recognize our vision to become a global company of Brands That Matter and great people, known for best-in-class results, while also achieving our environmental sustainability aspirations.

Living our Values

Our Footprint

Countries with key operating facilities of Newell Rubbermaid

Who We Are. From our beginnings over 100 years ago, Newell

Rubbermaid has grown to become a global marketer of consumer

and commercial products. Our strong portfolio of brands includes

Rubbermaid®, Sharpie®, Graco®, Calphalon®, Irwin®, Lenox®, Levolor®,

Paper Mate®, Dymo®, Waterman®, Parker®, Goody®, Technical

Concepts™ and Aprica®. Headquartered in Atlanta, Georgia, USA,

we employ approximately 20,000 people worldwide, and our 2009

sales totaled approximately $5.6 billion in more than 90 countries.

Engaging with Key Stakeholders

Our evolution as a company is driven by the relationships we have with our key stakeholders and our understanding of their needs. These stakeholders include:

• Consumers• Employees • Shareholders• Customers• Suppliers• Communities in which we operate

We are committed to engage with consumers and other stakeholders to better understand their needs through a range of approaches – including targeted research, meetings, presentations, conferences, websites and this report. We carefully consider feedback from our stakeholders and use it to help improve our products and practices.

Throughout this report, this icon indicates we have additional information available online at our website www.newellrubbermaid.com.

Our Company

9 10

Green Globe Awards, Newell Rubbermaid’s Global Headquarters in Atlanta

We moved into our new global headquarters in Atlanta, Georgia, in 2008. Our headquarters building was built with the environment in mind. The Green Building Initiative™ awarded the company two Green Globes for the building’s environmental design and the enhancement measures that minimized its impact on the environment. Highlights of our building include the ability to conserve treated water and minimize the need for off-site treatment of water and a facility-wide recycling program as well as design features that avoid or minimize air emissions.

Sustainability

Our Environmental Sustainability Vision is to be an eco-efficient company where excellence in environmental stewardship and sustainable innovation build Brands That Matter and create value for our shareholders, consumers, customers and employees.

Our Environmental Sustainability Mission is to integrate environmental sustainability principles and practices into the way Newell Rubbermaid does business, increasing our competitive advantage and strengthening our brands and corporate image.

Our Environmental Sustainability Strategy is to develop internal, cross-functional networks and programs that focus on building sustainable products and operations driven by communication, collaboration and partnerships with both our internal and external stakeholders.

More than ever before, consumers seek out products that are

environmentally responsible and affordable and produced in an

environmentally conscious manner. To meet these desires we

are investing to build a culture of environmental sustainability,

sustainable products and sustainable operations.

Building a Culture of Environmental

2009 Highlights

• Continued to conduct independent, third-party environmental audits on a 3-year cycle at our owned/operated manufacturing facilities worldwide.

• Received no fines or violations at our owned or operated facilities.

• Launched our internal environmental sustainability SharePoint site. Available to all employees worldwide, this site is home for all things related to environmental sustainability at Newell Rubbermaid.

11 12

Sustainable Packaging for Sharpie and Parker

Newell Rubbermaid implemented the first step in a reduced waste package design in 2009 for both Sharpie 10-count marker packs and Parker Urban Pen Gift Sets sold at club stores. In place of a conventional polyvinyl chloride or PVC “mock clamshell” package, Newell Rubbermaid introduced a “trapped-blister” package consisting of two paperboard cards and one plastic blister. In the case of the Sharpie package, this reduced the amount of plastic used by 59 percent while improving beneficial packaging features like theft deterrence and easy removal of the plastic blister for recycling. In 2010, Newell Rubbermaid plans to use this trapped-blister package design for all new club store carded items and to transition all existing carded items to this new design.

Calphalon ReNew™

Calphalon announced the launch of Calphalon ReNew – the industry’s first cookware recycling program – along with the introduction of Calphalon Unison™ Nonstick cookware. Consumers can participate in Calphalon ReNew by purchasing a set of Calphalon Unison Nonstick cookware and placing old pots and pans – any brand or condition – in the provided return shipping box. As a thank you, Calphalon will send the consumer two, 100 percent recycled and reusable cotton shopping bags. Today, approximately 30 percent of Calphalon cookware is made from recycled aluminum.

Reformulation of Marker Products

In our Office Products Group, product teams worked throughout 2009 to reformulate marker products to include more water-based inks and eliminate the use of certain solvents. One example is our Sharpie King Size, Magnum and Liquid Tip markers. These new Sharpie markers are better performing in terms of write quality, odor and sustainable materials. Expo dry erase markers, the vast majority of which are sold to schools and teachers, were similarly reformulated. Elimination of certain solvents from our products reduces environmental impacts from hazardous air pollutants and greenhouse gas emissions.

Upcycling with TerraCycle™

Newell Rubbermaid launched a partnership with eco-friendly innovator TerraCycle to create a second life for writing instruments. Newell Rubbermaid has joined with TerraCycle to create “Writing Instrument Brigades” that set up boxes for collecting and recycling depleted writing instruments – not only Newell Rubbermaid’s, but ALL spent writing instruments. In addition to recycling these products, a donation based on the quantity of writing instruments collected by each Brigade is made to the charity of that Brigade’s choice. Through the partnership, TerraCycle will also develop useful and fun new products made with “upcycled” end-of-life Paper Mate, Sharpie and Expo writing instruments.

Sustainable Products

We are taking steps to achieve our vision of excellence in environmental stewardship and sustainable innovation with respect to our brands. This includes introducing environmental sustainability understanding into our standardized consumer-driven innovation (CDI) product development process. We are also providing our employees with the knowledge and tools they need to identify opportunities to improve product and packaging sustainability as they innovate our brands.

2009 Highlights

• Used life cycle analysis software to identify and prioritize opportunities to reduce the environmental impacts of our products from “cradle to grave.”

• Worked with our packaging teams to determine the “right sizes” for our packaging, resulting in smaller and more efficient packaging.

• Partnered with outside organizations – including the Forest Stewardship Council™ (FSC) – to secure green certifications for our packaging.

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13

The Journey Continues

Newell Rubbermaid’s environmental sustainability journey continues as we build upon our

experience integrating environmental sustainability principles and practices into the way we

do business. With the launch of training and tools to integrate environmental sustainability

into our consumer-driven innovation process, we expect to develop and market more

products that meet our customers’ needs for more sustainable products. We will continue to

communicate and inspire our employees to achieve excellence in environmental stewardship

and sustainable innovation and develop partnerships with our other stakeholders, and we look

forward to reporting on our progress next year.

14

Energy and Climate Change Management

Based on our energy use data for 2008, we identified eight manufacturing facilities that accounted for a large percentage of the energy used across Newell Rubbermaid and established an energy management team to focus on reductions at these more energy-intensive facilities. The energy management team and corporate environmental and sustainability staff analyzed energy usage and performance measures and developed energy reduction practices and methods to track progress. In 2010, we are targeting an average five-percent energy usage reduction for these eight facilities. We plan to develop templates and best practices from these facilities, to share across all manufacturing and distribution locations within Newell Rubbermaid.

2009 Energy Use (total: 2,361 terajoules)

0 500 1,000 1,500 2,000

Other

Propane/ Butane

Natural Gas

Purchased Electricity

2

192

445

1,723

0 500 1000 1500 2000

Other

Propane/ Butane

Natural Gas

Purchased Electricity

Other

Propane/ Butane

Natural Gas

Purchased Electricity

Other: <0.1%

Propane/ Butane: 8%

Natural Gas: 19%

Purchased Electricity: 73%

2009 Greenhouse Gas Emissions (metric tons CO2 equivalent)

0 100,000 200,000 300,000

Indirect emissions from transportation

Indirect emissions from purchased electricity

Direct emissions from combustion

15,251

292,956

33,719

0 200000 400000 600000 800000

Indirect emissions from transportation

Indirect emissions from purchased electricity

Direct emissions from combustion

Other

Propane/ Butane

Natural Gas

Purchased Electricity

Sustainable Operations

We are laying the foundation to become a more eco-efficient company, which will bring both economic and environmental benefits to our operations.

2009 Highlights:

• Continued implementing environmental management systems (EMS) patterned after ISO 14001 in all of our facilities. Our goal is for all of our manufacturing facilities to meet our internal EMS standard by 2014. Our operations in Bangkok, Thailand, and St. Nikkalas, Belgium, are ISO 14001 certified.

• Launched the Green Office program to raise environmental awareness among employees and to help build an environmental sustainability culture. Green Office champions volunteered to drive sustainable practices such as increased recycling, carpooling and more eco-friendly purchasing in 28 offices worldwide.

• Worked to integrate environmental sustainability criteria (e.g., energy conservation and waste reduction) into our existing facility process improvement and productivity programs.

• Established key performance indicators (KPIs) for energy, waste and water and gathered baseline data from our manufacturing facilities. These KPIs form the basis for future goal setting and reporting.

2009 Non-Hazardous Waste (total: 13,032 metric tons)

0 500 1,000 1,500 2,000

Other

Propane/ Butane

Natural Gas

Purchased Electricity

2

192

445

1,723

0 200000 400000 600000 800000

Water Discharged

Water Withdrawn

Land�lled/ Disposed

Incinerated

Recycled/ Reused

Recycled/ Reused: 87%

Incinerated: 3%

Land�lled/ Disposed: 10%

2009 Hazardous Waste (total: 1,520 metric tons)

0 500 1,000 1,500 2,000

Other

Propane/ Butane

Natural Gas

Purchased Electricity

2

192

445

1,723

0 200000 400000 600000 800000

Water Discharged

Water Withdrawn

Recycled/ Reused

Incinerated

Land�lled/ Disposed

Recycled/ Reused: 40%

Incinerated: 5%

Land�lled/ Disposed: 55%

2009 Water Use (cubic meters)

0 500 1,000 1,500 2,000

Other

Propane/ Butane

Natural Gas

Purchased Electricity

2

192

445

1,723

0 200000 400000 600000 800000

Water Discharged

Water Withdrawn

0 200,000 400,000 600,000 800,000

Water Discharged

Water Withdrawn

Other

Propane/ Butane

Natural Gas

Purchased Electricity

411,472

693,309

Newell Rubbermaid Corporate Headquarters3 Glenlake ParkwayAtlanta, GA 30328© 2009, Newell Rubbermaid, Inc.