Operational Footprint

Our GHG goal:

The Clorox Company made a public pledge to reduce our Greenhouse Gas (GHG) emissions by 10 percent per case of product sold from 2007 to 2013.

In fact, we joined the EPA’s Climate Leaders Program in 2008 as part of our commitment to reduce our GHG footprint. Climate Leaders personnel have and will continually review Clorox’s GHG emissions inventory data as well as our progress towards reaching our GHG emissions goal. We also provide our GHG information to the Carbon Disclosure Project (CDP) with our full submission available here.

Our GHG data collection:

In 2007 and 2008, our headquarters in Oakland, Calif., received the Energy Star® rating for our use of energy-efficient products and practices. Energy Star is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy that promotes protecting the environment through energy-efficient products and practices.* Our 2005 through 2008 GHG emissions data were collected by a third party environmental services firm (Liberty Environmental) with detailed knowledge of the operations and air emissions characteristics of the major Clorox manufacturing facilities. Liberty Environmental utilized source data (electricity, natural gas, fuels, and chemicals) to calculate associated emissions, and followed the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) standard protocols in their calculation of Clorox’s GHG emissions.

Our GHG reduction plan:

Clorox’s GHG reduction plan is focused on four key areas:

1. Reducing the energy use of our manufacturing operations
2. Improving the efficiency of product distribution
3. Driving for product and package material reduction and improvements
4. Executing other workplace efficiency initiatives

• Energy reduction: We are currently focused on reducing electricity use by retrofitting all our North American manufacturing and distribution facilities with energy efficient T5/T8 lighting, and by installation of motion sensors where appropriate. We have also begun to conduct extensive energy audits at our manufacturing plants in order to identify other operating equipment and HVAC systems efficiencies that can further reduce our electricity use.
• Distribution efficiency: We have recently increased the eco-efficiency of our finished product distribution markedly by moving from truck to more efficient rail. Today, Clorox has an industry leading 30 percent of its finished goods distribution miles on rail. Distribution network reconfiguration and use of EPA Smart Way carriers is also part of our plan to reduce our distribution footprint.
• Material efficiency: The Clorox Company is committed to redesigning our products and packaging in order to improve their environmental footprint by either reducing or improving the materials used. During the past five years, Clorox has made sustainability improvements to 32 percent* of its product portfolio (volume sold basis) and we have plans in place to make sustainability improvements to 25 percent of our portfolio by 2013. And we are proud that 90 percent of our product cartons use 100 percent recycled material, and that more than 85 percent of the packages that house our products are recyclable.
  (* Per internal Clorox sustainability improvement measurement system)
• Workplace Initiatives: We are also committed to doing all that we can to reduce our workplace energy use and commensurate GHG emissions. Recently, Clorox has reduced its paper use by 30 percent across all of its North American facilities, with all remaining paper converted to 100 percent recycled content. We have also recently reduced business travel by 20 percent, and converted all company cars to Toyota Prius hybrids which reduced fuel use by almost half and reduced annual GHG emissions by about 700 metric tons. Current efforts are focused on making our General Office building more eco-efficient as we work towards LEED certification for this key facility.

Our GHG Reduction Progress:

Our GHG Emission Details

• By source of GHG Emissions:
  
  Scope 1, 2 and 3 emissions are defined as follows:
  
  • Scope 1 emissions are defined as GHG emissions as a direct result of Clorox operations and equal approximately 12 percent of Clorox’s total manufacturing and distribution GHG impact. We estimate that 53 percent of Scope 1 emissions are from carbon dioxide (CO2) and the remainder is from methane (CH4), nitrous oxide (N2O), and hydrofluorocarbons HFC’s. The primary source of CH4 and N2O is wood pyrolysis at charcoal plants in the United States. HFC emissions have averaged 155 Metric Tons Carbon Equivalent (MTCE) per year for the period 2005 – 2007, based on a release of 0.119 tonnes of refrigerant. The primary species of HFC released is R-134a.
  • Scope 2 emissions are defined as Clorox’s indirect emissions from purchased electricity, heat and steam. A little over 50 percent of our combined manufacturing and distribution GHG footprint is from our indirect electricity use at our manufacturing plants, distribution centers and corporate office buildings. Our GHG calculations include both the amount of electricity drawn as well as the source of that electricity (e.g., coal vs. gas vs. other types of power plant fuels). Regional electric power emission factors (eGRID data) were used to compute indirect emissions. This is in conformance with the U.S. EPA Protocol.
  • Scope 3 emissions, associated with the distribution of our finished products by non-affiliated carriers to regional distribution centers and to retailers, account for about a third of Clorox’s combined manufacturing and distribution GHG impact. These estimates include all modes of transport (air, water, truck, and rail). When truck carrier specific fuel efficiency data was not available, we used an efficiency of 5.5 miles/gallon of diesel fuel as a default value for long haul trucking. Scope 3 distribution emissions were estimated by using both truck miles traveled and actual fuel used: 1) between our production facilities; 2) from production facilities to our distribution centers; 3) from production facilities to customer distribution centers and 4) from our distribution centers to customer distribution centers.
  
  Scope 1, 2 & 3 GHG Emission trends
  

• By type of GHG Emissions: All six recognized GHGs have been inventoried. There has been no reported use of sulfur hexafluoride and perfluorocarbons. The global warming potentials from the Intergovernmental Panel on Climate Change (IPCC) 1996 Second Assessment Report were used for conformance with the U.S.EPA Climate Leaders Protocol.

• GHG Emissions by Geography:

• Adding biogenic to reportable GHG Emissions:
  More than 60 percent of our greenhouse gas emissions are actually from biogenic sources associated with the use of wood scrap as an energy source in our Kingsford® charcoal manufacturing operations. (CO2 produced in our Kingsford operations via wood pyrolysis and off-gas combustion is considered biogenic, while the CH4 and N2O emissions produced via pyrolysis and off-gas combustion are considered anthropogenic and are therefore included in Clorox’s Scope 1 reportable emissions.)
  
  We chose to show this data even though biogenic greenhouse gas emissions (that is, from wood and other biofuels) are considered part of the natural carbon cycle, and are therefore excluded from reportable carbon-footprint calculations.

Other innovative ways Clorox is working to reduce our carbon footprint:

• Carbon Emissions Offsets:
  Burt’s Bees Natural Personal Care Products, a Clorox division, essentially offsets their Greenhouse Gas (GHG) emissions from electrical usage today by the purchase of Renewable Energy Credits (REC’s) in the form of wind energy.
  
  For the 2010 - 2012 periods, Burt’s Bees will be purchasing carbon offsets equivalent to their entire Scope 1 and Scope 2 GHG footprint as they seek to be a carbon neutral operation. Scope 1 carbon offsets will be purchased through "Renewable Choice Energy" (http://www.renewablechoice.com). Scope 2 carbon offsets will be purchased through "NC GreenPower" (http://ncgreenpower.org), an independent non-profit organization, established to improve North Carolina’s environment, where Burt’s Bees is headquartered.
  
  Also - as part of our effort to pursue Leadership in Energy & Environmental Design (LEED) certification for our corporate offices at Oakland, California, we are purchasing REC’s to offset our electricity usage within the building.
• Renewable Energy:
  Kingsford® retort furnaces convert renewable wood scrap to make char. Much of the heat generated from this process is, in turn, used to dry waste wood raw material as well as finished charcoal briquettes, and to power steam boilers that are used for other Kingsford manufacturing operations, thereby reducing use of fossil fuels (fuel oil & natural gas).

*Energy Star® is a trademark of the U.S. Environmental Protection Agency and the U.S. Department of Energy.

The Clorox Company is dedicated to energy conservation which is one of the key components of our public corporate GHG reduction plan. Energy conservation activities are being carried out at our manufacturing plants, corporate offices, and distribution centers. Our total global energy usage as measured by natural gas, propane, and electricity at our facilities is listed below:

	2007	2008
Energy Use (MWh)	575,095	567,937
Percent change in energy use	---	- 1.2 percent

Clorox’s total consumption of purchased energy in MWh:

Purchased Energy in MWh
Calendar Year	United States	International	Worldwide
2005	425,617	127,084	552,701
2006	422,855	130,954	553,809
2007	445,326	134,731	575,095
2008	434,172	133,765	567,937

Breakdown of total fuel consumption (2007):

Purchased Fuel in MWh
Fuel Type	United States	International	Worldwide
Natural Gas	166,848	26,166	193,014
Fuel Oil	24,662	2,590	27,252
Propane	3,172	482	3,654
Kerosene	0	1	1

The Clorox Company is dedicated to reducing our water usage. This includes water we use in products as well as process water as part of daily manufacturing operations.

The Clorox Company pledges to reduce our water consumption by 10 percent per case of product sold from 2007 to 2013.

Our global water usage inventory for 2007 and 2008 is listed below:

	2007	2008
Water Use (million gallons)	954.0	910.0

Our water conservation efforts were off to a fast start from 2007 to 2008 due to a number of water recycling infrastructure and equipment upgrade initiatives, as well as changes to some of our water management practices. Most notably, our Kingsford plants in Parsons, West Virginia and Belle, Missouri both reduced their water consumption by more than 40 percent primarily through investments in water recycling infrastructure and replacing water with air compressor systems.

We are committed to building on our recent water conservation progress and have now set our sights on meeting or beating our 10% reduction goal.

Since Clorox is not a heavy manufacturer, we produce a modest amount of solid waste, most of which is non-hazardous in nature. Nonetheless, we are committed to minimizing the amount of waste that is produced at our facilities.

We have set a goal to reduce our company-wide solid waste by 20 percent per case of product sold from 2007 (baseline year) to 2013. We plan to do this by reducing the amount of waste we generate, finding more ways to re-use our waste, and expanding our recycling efforts.

During the past year, our employees at two of our manufacturing facilities conducted "Dumpster Drives" - literally digging through our trash to see if we could reduce waste - and ultimately found ways to significantly reduce our solid waste at both of these facilities. We plan to expand this program throughout Clorox’s manufacturing system.