3M has developed its sustainability report using the Global Reporting Initiative’s G3 guidelines. The table below outlines where specific GRI reporting elements and indicators are addressed in the report. For more information on the Global Reporting Initiative please visit GRI's website.
The image below illustrates the GRI’s possible application levels under G3.
3M self declares its 2008 report as a “C+” level report. Environmental
Resources Management (ERM) reviewed 3M’s 2008 Sustainability Report and
procedures and provided an independent, third party assurance of the report.
| GRI Element |
Description |
Site Location(s) |
Detail & Comments |
| Profile |
| Strategy & Analysis |
| 1.1 |
Statement from the most senior decision-maker of the organization. |
CEO Statement |
|
| Organization Profile |
| 2.1 |
Name of the organization. |
Company Information |
|
| 2.2 |
Primary brands, products, and/or services. |
Company Information, 3M Brands, & 3M Technologies. |
|
| 2.3 |
Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures. |
3M Businesses & 2008 Annual Report (PDF, 3.87MB) (See page 55) |
|
| 2.4 |
Location of organization’s headquarters |
2008 Annual Report (PDF, 3.87MB) (See last page) |
|
| 2.5 |
Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report. |
Our Global Presence & 2008 Annual Report (PDF, 3.87MB) (See pages 8, 22, 30, & 35) |
|
| 2.6 |
Nature of ownership and legal form. |
2008 Annual Report (PDF, 3.87MB) (See page 100) |
|
| 2.7 |
Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). |
2008 Annual Report (PDF, 3.87MB)
& 3M Businesses (See pages 3-5, 8, & 29) |
|
| 2.8 |
Scale of the reporting organization. |
2008 Annual Report (PDF, 3.87MB) (See introduction pages 1 & 4 and body pages 29 & 11) |
|
| 2.9 |
Significant changes during the reporting period regarding size, structure, or ownership |
2008 Annual Report (PDF, 3.87MB) (See page 8) |
|
| 2.10 |
Awards received in the reporting period. |
Recognition |
|
| Report Parameters |
| 3.1 |
Reporting period |
Procedures |
|
| 3.2 |
Date of most recent previous report |
Procedures |
|
| 3.3 |
Reporting cycle |
Procedures |
|
| 3.4 |
Contact point for questions regarding the report or its contents. |
Procedures |
|
| 3.5 |
Process for defining report content, including:
- Determining materiality;
- Prioritizing topics within the report; and
- Identifying stakeholders the organization expects to use the report.
|
Procedures, Stakeholder Interaction, Engaging Stakeholders, 3M Sustainability In-depth: Defining Sustainability Report Content (PDF, 48KB), & 3M Sustainability In-depth Meeting Needs and Keeping in Touch; 3M’s Approach to Stakeholder Engagement (PDF, 52KB) |
|
| 3.6 |
Boundary of the report. |
Procedures |
|
| 3.7 |
State any specific limitations on the scope or boundary of the report. |
Procedures |
|
| 3.8 |
Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations. |
Procedures & 2008 Annual Report (PDF, 3.87MB) |
|
| 3.9 |
Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. |
Procedures |
|
| 3.10 |
Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods). |
Procedures |
|
| 3.11 |
Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report. |
Procedures |
|
| 3.12 |
Table identifying the location of the standard disclosures in the report. |
GRI Content Index |
|
| Governance, Commitments, and Engagement |
| 4.1 |
Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight. |
Governance Structure, Corporate Governance, 3M Board of Directors, & CEO and Corporate Officers |
|
| 4.2 |
Indicate whether the Chair of the highest governance body is also an executive officer |
Governance Structure, Corporate Governance, 3M Board of Directors, & CEO and Corporate Officers |
Yes, the Chair of the highest governance body is also an executive officer.
3M’s Board of Directors believes it is fundamentally wrong to permanently
and inflexibly separate or combine the positions of Chairman of the Board and
Chief Executive Officer. To do so deprives the Board of the ability to act in
the stockholders’ best interests in selecting future Board leadership.
More Information (PDF, 428KB) on this Position.
|
| 4.3 |
For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members. |
Governance Structure, Corporate Governance, 3M Board of Directors, & CEO and Corporate Officers |
9 of 10 |
| 4.4 |
Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. |
Corporate Governance & Engaging Stakeholders |
|
| 4.14 |
List of stakeholder groups engaged by the organization. |
Stakeholder-Interaction, Engaging Stakeholders, 3M Sustainability In-depth: Defining Sustainability Report Content (PDF, 48KB), & 3M Sustainability In-depth Meeting Needs and Keeping in Touch; 3M’s Approach to Stakeholder Engagement (PDF, 52KB) |
|
| 4.15 |
Basis for identification and selection of stakeholders with whom to engage. |
Engaging Stakeholders, 3M Sustainability In-depth: Defining Sustainability Report Content (PDF, 48KB), & 3M Sustainability In-depth Meeting Needs and Keeping in Touch; 3M’s Approach to Stakeholder Engagement (PDF, 52KB) |
|
| Indicators |
| EC1 |
Economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments. |
2008 Annual Report (PDF, 3.87MB) & Community Giving |
|
| EC3 |
Coverage of the organization's defined benefit plan obligations |
2008 Annual Report (PDF, 3.87MB)
3M has a wide range of defined benefit plans that cover substantially all
U.S. employees and many employees outside the United States to help them
prepare for retirement. Our Total Retirement Program includes a pension
plan, retiree medical and dental plan coverage and company-funded life
insurance benefits, in addition to an employee 401(k) plan, with a company
match.
Employees are encouraged to take advantage of these valuable retirement
benefits to help build resources for the future. The plans are generally
based on each participant’s years of service, compensation and age at
retirement or termination.
3M's financial strength enables the company to keep these plans adequately funded to pay pension benefits to eligible current and future retirees. In the last six years (since 2002), 3M has contributed more than $3.5 billion to solidify the company's global pension obligations. 3M's contributions totaled $190 in 2007 and $348 million in 2006. Our U.S. pension plans were 99 percent funded as of December 31, 2006.
During 2008 the funded status of the Company’s global pension plans declined from 100 percent to 85 percent. As of December 31, 2008, the U.S. pension plans’ funded status was 89 percent with the qualified plan at 92 percent, and the international plans at 75 percent. By utilizing an effective hedging strategy for both fixed income and equity investments, the Company was able to limit the decline in U.S. pension plan’s assets to a negative 13.6% return in
2008, much better than the overall market. In 2009, the Company expects to contribute an amount in the range of
$600 million to $850 million to its U.S. and international pension plans. The Company does not have a required minimum pension contribution obligation for its U.S. plans in 2009. The changes in 3M’s defined benefit pension and postretirement plans’ funded status, which are required to be measured as of each year-end, significantly impacted several balance sheet line amounts at December 31, 2008. In the fourth quarter of 2008, these required annual
measurements decreased prepaid pension benefits’ assets by $1.7 billion, increased deferred taxes within other
assets by $1.1 billion, increased pension and postretirement benefits’ long-term liabilities by $1.7 billion and decreased stockholders’ equity (reflected after taxes) by $2.3 billion. Other pension and postretirement changes during the year, such as contributions and amortization, also impacted these balance sheet captions. Refer to critical accounting estimates within MD&A and Note 11 (Pension and Postretirement Benefit Plans) for additional information
concerning 3M’s pension and post-retirement plans. |
| EC7 |
Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation. |
Global Opportunities |
Indicator is only partially addressed. |
| EN3 |
Direct energy consumption by primary energy source. |
Improving Energy Efficiency |
|
| EN5 |
Energy saved due to conservation and efficiency improvements. |
Improving Energy Efficiency |
|
| EN7 |
Initiatives to reduce indirect energy consumption and reductions achieved. |
Improving Energy Efficiency |
Indicator is only partially addressed. |
| EN13 |
Habitats protected or restored. |
Enhancing Biodiversity & Biodiversity Examples |
Indicator is only partially addressed. |
| EN16 |
Total direct and indirect greenhouse gas emissions by weight. |
Climate Change & Energy & Metrics |
|
| EN18 |
Initiatives to reduce greenhouse gas emissions and reductions achieved. |
Climate Change & Energy & Improving Energy Efficiency |
|
| EN22 |
Total weight of waste by type and disposal method. |
Reducing Waste |
Indicator is only partially addressed. |
| EN23 |
Total number and volume of significant spills. |
Compliance |
3M did not have any spills in 2008 that met the GRI’s definition of “Significant Spills.”
GRI Significant Spill Definition:
All spills that are included in the reporting organization’s financial statement (e.g., due to resulting liabilities) or recorded as a spill by the reporting organization.
Indicator is only partially addressed. |
| EN28 |
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations. |
Compliance |
In 2008, 3M paid five environmental fines, globally, totaling $46,450.
|
| PR1 |
Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures. |
Life Cycle Management
3M manufactures over 50,000 products and introduces approximately 500 new products each year.
In 2001, 3M required all new products to undergo a life cycle management
(LCM) review and existing products were required to undergo an LCM review on a prioritized basis.
As of the end of 2008, it is estimated that approximately 70% of products sold globally (based on revenue) have a completed a LCM review.
| Product Stages Addressed by 3M’s Lifecycle Management Process |
Yes |
No |
| Development of product concept |
✓ |
|
| R&D |
✓ |
|
| Certification |
✓ |
|
| Manufacturing and production |
✓ |
|
| Marketing and promotion |
✓ |
|
| Storage distribution and supply |
✓ |
|
| Use and service |
✓ |
|
| Disposal, reuse, or recycling |
✓ |
|
|
| PR6 |
Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship. |
Business Conduct Policies: Advertising and Product Representation Policy
|
Indicator is only partially addressed. |
| LA6 |
Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs |
Approximately, 75% of 3M employees are represented in formal joint management-worker
health and safety committees. This figure includes all 3M employees
working in manufacturing plants, laboratories, and distribution centers.
Some, but not all, administrative employees are also covered by health and
safety committees. |
| LA11 |
Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings. |
Skills Management and Learning Opportunities
3M provides learning opportunities for employees to increase their
knowledge, skills and performance. Some of these opportunities include
Leadership Development, knowledge sharing forums, such as Leaders Teaching
Leaders, 3M Tech Forum and other employee special-interest groups; and
function-based formal education and training activities.
Our Career Pathways Web site helps guide employees on career development
and planning. A variety of eLearning opportunities also are available,
including a site with many tools for pre-retirement planning.
Tuition Reimbursement
At most 3M global locations, 3M offers tuition reimbursement to encourage
employees to upgrade their education to better meet current job
responsibilities, prepare for future responsibilities and help qualify for
changes in career paths within 3M. In countries providing state-sponsored
education, 3M gives employees time off to complete training. In 2006, 3M
spent $4,003,479 to support U.S. employees pursuing higher education
through 3M’s Tuition Reimbursement Refund Program. In 2008, 3M expended $4,253,131 to support U.S. employees pursuing higher education through 3M's Tuition Reimbursement Refund Program.
Job Transition Assistance
For employees whose positions are eliminated due to business needs, 3M
offers a range of resources, based on location and availability, to help
transition to employment in other areas of 3M or outside the company. These
services include the development of career transition skills and job
placement opportunities. In addition, 3M has an internal e-recruit Web site
that advertises current 3M position openings for employees to
self-nominate. |
| LA12 |
Percentage of employees receiving regular performance and career development reviews. |
Performance and Career Development Process
Highly respected and skilled employees contribute to the success of the
company. 3M supports and encourages employees in the development and
advancement of their careers with the aid of many tools.
Through 3M’s Employee Contribution and Development Process (EC&DP), all
salaried U.S. employees, about 20,000 employees, create an annual
individual development plan. This plan helps employees identify their
strengths and build on their skills, including achievement of 3M Leadership
Attributes. During the year, employees and supervisors together review
progress and adjust the plan. An annual formal evaluation of performance
assesses employees’ ability to demonstrate the leadership behaviors 3M
needs to succeed.
EC&DP also supports performance-based compensation. Employee compensation
is aligned with each employee’s performance and contribution to business
results. Meaningful differences in employee performance produce meaningful
differences in compensation. An employee’s performance rating is based on
actual results the employee produced compared to the expectations or goals
established for the year as determined by the employee and supervisor.
These expectations vary by job, job level, function and organization.
Indicator is only partially addressed. |
| SO2 |
Percentage and total number of business units
analyzed for risks related to corruption. |
100%. All of 3M’s Businesses perform a business
conduct self assessment every other year that
includes an assessment of risks related to corruption. |
| SO3 |
Percentage of employees trained in organization's anti-corruption policies and procedures. |
3M offers a comprehensive online compliance course|
program available to employees worldwide. In addition to an anti-bribery course, the program offers training in related areas such as business across borders, understanding the Foreign Corrupt Practices Act, financial reporting, government relationships, conflict of interest, business conduct, and other key compliance areas. A total of 20 courses are offered to 3M's employee population.
In addition, 3M's internal Legal Affairs website offers additional anti-bribery training on 3M's global anti-bribery compliance program.
All courses are offered to employees to take at any time. However, 3M also requires certain employees to take certain courses on a periodic basis. To accomplish this, each course has a predetermined mandatory population based on employee job grade, job function and country location. All employees located in the United States and Canada are required to take 3M's Business Conduct course, which is an overview of 3M's Business Conduct Policies. Course completion is tracked electronically when an employee takes the course and passes a quiz.
All of 3M's standard courses are available in nine languages: Chinese (Simplified), English, French, German, Italian, Japanese, Korean, Portuguese (Brazilian), and Spanish (Latin American). This covers approximately 90% of 3M's employee population.
Indicator is only partially addressed.
|
