Environmental Management and Compliance

Governance of Environmental Sustainability at Clorox

Clorox’s Board of Directors Nominating and Governance Committee is responsible for oversight of environmental health and safety compliance at the company, including Climate Change.

Additionally, environmental footprint reduction is a part of Clorox’s 2007-2013 Corporate Strategy and therefore the responsibility of the Clorox Executive Committee which oversees corporate strategy execution.

Clorox also has an explicit, articulated Eco Strategy, and dedicated corporate-level Eco Office led by a Vice President of Environmental Sustainability that is charged with executing that strategy. And a large portion of Clorox Eco Office personnel’s annual variable compensation is contingent on making specific progress against the company’s Eco Strategy.

This governance structure ensures that Clorox will be able to drive sustainability improvement throughout the organization and over time.

Environmental Management and Compliance System

Clorox is proud of its environmental management record, and has a top tier environmental management system called Environmental Tracking, Reporting and Compliance System (ETRACS) that enables us to track, report and ensure environmental compliance of our facilities. Site-specific compliance activities are driven by this system including all federal, state, and local permitting requirements. Sustainability activities such as GHG reporting and water usage are also tracked in this system.

ETRACS is a very robust notification based system that identifies compliance and sustainability tasks at a plant / facility level. ETRACS provides weekly and monthly reminders and deadlines for environmental compliance tasks and activities that need to be completed. It also works as an effective tool to facilitate compliance task planning for our environmental coordinators and provides important regulatory compliance deadline information to our Site Managers. Ultimately, an Environmental Coordinator at each site is responsible to ensure that all compliance tasks are completed to meet regulatory requirements.

Clorox is also inspected regularly by regulatory agencies that focus on health, safety and environmental compliance for all Clorox product lines at all our manufacturing facilities. These regulators include Federal, State and Local governmental agencies. In our Fiscal Year 2009 (July 1 2008 through June 30, 2009) dozens of health, safety and environmental inspections were completed by these agencies across Clorox’s North American facilities. Nearly 70 percent of these regulatory visits were environmental in nature. ETRACS, employee training and thorough recordkeeping ensure that our facilities consistently meet the regulatory requirements permitted to help ensure the human and environmental safety of our on site employees and surrounding communities.