Climate Change & Energy Management

Reducing Greenhouse Gases

Greenhouse gas (GHG) emission reductions are a priority for 3M. Although the science of global climate change is evolving, 3M is taking voluntary, responsible action to reduce GHG emissions. 3M set a goal to reduce our worldwide GHG emissions by 50% (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. GHG emissions by 30 percent by 2007 (from a 2002 base year).

The emission-reduction goals include both Kyoto and non-Kyoto gases and are being accomplished through manufacturing process improvements, energy conservation and additional pollution control equipment.

In tracking our progress towards our GHG goals, 3M has developed a worldwide GHG inventory and has received third-party verification of this inventory. Our inventory was developed using the World Resource Institute/World Business Council for Sustainable Development GHG Protocol. 3M's corporate-wide inventory includes emissions from the following sources:

• Direct emissions of CO2 from stationary combustion of fossil fuels, waste and solvents.
• Indirect emissions of CO2 from the use of electricity and steam.
• Direct emissions of CH4 from wastewater treatment.
• Direct emissions of CO2 from 3M-owned and leased mobile sources.
• Direct, process-related emissions of other greenhouse gases.

3M's 1990 and 2000 GHG inventories were validated by CH2M Hill and its 2002 GHG inventory was externally verified by CH2M Hill. 3M has used the same processes to develop its subsequent GHG inventories.

Energy Efficiency

Energy efficiency is an important part of reaching our GHG reduction goals. Strong energy conservation strategies have helped us achieve a 78 percent improvement in energy efficiency since 1973. Since 1990, our energy requirements have increased with the installation of energy-intensive, pollution control equipment to reduce emissions of volatile organic compounds (VOCs). At the end of 2006, 3M had reduced VOCs by 95% from 1990 levels. 3M has been making advances in solventless technology since 1990. As 3M's solventless manufacturing processes advance, the need for emission controls and associated energy demands will decrease. More Information on 3M's energy management.

Investing in Renewable Energy

3M is also working to manage its greenhouse gas emissions impact by purchasing and installing on-site renewable energy.

• In 2006, 3M entered into a new agreement to purchase livestock-derived methane for its Prairie du Chien, Wisconsin plant. By mid-2008, the plant expects to get 11% of its energy use from this renewable source offsetting approximately 1,908 metric tons of greenhouse gas emissions.
• In 2006, 3M's Perth, Canada plant began installing a 2,000 square foot solar wall on the south side of the warehouse. The solar wall is expected to displace 329 million Btu's of electricity for the site each year. The new wall will both preheat the air and reduce the building transmission loss.
• 3M has been purchasing wind energy at its Austin, Texas location since March of 2001. This location purchases approximately 1,250,000 kWh annually equaling 13% of its annual energy use.

In addition, 3M is also exploring opportunities to utilize landfill gas, on-site and off-site wind energy, and biodiesel at other 3M locations.

Results:

• 3M reduced worldwide, absolute GHG emissions, in 2006, by 54% from a 1990 base year.
• 3M reduced U.S., absolute GHG emissions, in 2006, by 50% from a 2002 base year.
• In 2005, 3M exceeded its goal to reduce energy use indexed to net sales by 20% off a 2000 base year, reducing energy use by 29%.
• 3M reduced worldwide energy use (indexed to net sales) at its operations by 37 percent from 1998 - 2007.
• 3M reduced U.S. energy use (indexed to net sales) at its operations by 78 percent from 1973 - 2007.