Slide 1: ESG Is Core to Our Growth
ESG IS CORE TO OUR GROWTH Promises Delivered for Customers, People and Planet JUNE 1, 2022
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Forward-Looking Information: This communication contains forward looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding our financial and business
Slide 3: Agenda
AGENDA How ESG drives our business Delivering on our promises CHRISTOPHE BECK EMILIO TENUTA Environment CHAIRMAN, CHIEF EXECUTIVE OFFICER & PRESIDENT SENIOR VICE PRESIDENT & CHIEF SUSTAINABILITY Social OFFICER Governance Sustaining growth by doing good Q&A LAURIE MARSH MIKE MCCORMICK E
Slide 4: Addressing Global Needs
ADDRESSING GLOBAL NEEDS WATER STRESS FOOD SHORTAGE PUBLIC HEALTH CLIMATE CHANGE 56% 35% 30% 25% freshwater deficit more food more people more energy by 2030 by 2050 by 2050 by 2050 4
Slide 5: Significant Global Reach
SIGNIFICANT GLOBAL REACH WATER FOOD HEALTH 1.1 TRILLION 36% 66 BILLION GLOBAL FOOD SUPPLY GALLONS MANAGED HANDS CLEANED PROTECTED CLIMATE SOCIETY STAKEHOLDERS SERVING IMPACTING LIVES IN 20% 3 MILLION WORLD’S POWER CUSTOMER SITES WITH 170+ GENERATED COUNTRIES DIVERSE TEAMS 5
Slide 6: Winning Value Proposition + Cost
WINNING VALUE PROPOSITION BREAKTHROUGH ON-SITE EXPERTISE TECHNOLOGY BEST RESULTS AT + COST LOWEST TOTAL (By reducing environmental impact) GLOBAL KNOW-HOW PREDICTIVE INSIGHTS
Slide 7: Sustainability at High Business Return
SUSTAINABILITY AT HIGH BUSINESS RETURN BUSINESS OUTCOMES OPERATIONAL DRIVERS ENVIRONMENTAL IMPACT $ TOTAL VALUE DELIVERED (TVD) = Investment in Ecolab > 25% Return for customers 7
Slide 8: Growing Fast by Growing Our Impact
GROWING FAST BY GROWING OUR IMPACT WATER SAVINGS SALES EPS (Adjusted) (Adjusted)* $Billions 13,000 12,500 12,000 11,500 11,000 10,500 2015 2016 2017 2018 2019 2020 2021 2030 10,000 153 161 175 188 206 206 215 300 BILLION GALLONS BILLION GALLONS BILLION GALLONS BILLION GALLONS BILLION GALLONS BILLION
Slide 9: Helping Customers Deliver on Their Promises
HELPING CUSTOMERS DELIVER ON THEIR PROMISES 9
Slide 10: Journey to 2030
JOURNEY TO 2030 EMILIO TENUTA Chief Sustainability Officer
Slide 11: ESG Leadership in Action
ESG LEADERSHIP IN ACTION Aligned to Global WEF Stakeholder Advancing Our 100% RE Goal 2030 Commitments Capitalism Metrics Climate Disclosure Europe Wind Farm In Finland CLIMATE Workforce Supplier Employee-led Global Water Resilience Demographics Data Diversity Goals Sustainability Network Coalition
Slide 12: Convening Action on Water for All
CONVENING ACTION ON WATER FOR ALL “150 of the world’s companies can positively influence one-third of global freshwater use.” 30 COMPANIES, $3.5 TRILLION MARKET CAP GOALS (BY 2050): 1. Net Positive Water Impact 2. 100 basins impacting 3 billion people 3. Water access for 300 million people PILLARS:
Slide 13: Sustainable, Economic Outcomes
SUSTAINABLE, ECONOMIC OUTCOMES IN OUR OWN OPERATIONS THROUGH OUR CUSTOMERS Embodying corporate responsibility and Driving exponential operational and sustainability in our own operations sustainability results with our customers 13
Slide 14: Delivering on Our Promise in Our Operations
DELIVERING ON OUR PROMISE IN OUR OPERATIONS 2030 goals: DIVERSITY, EQUITY, AND WATER CLIMATE INCLUSION SAFETY 2030 GOAL 2030 GOAL 2030 GOAL 50% 50% 35% and 25% GOAL ZERO reduction in overall water impact reduction in CO2e management level gender and ethnic/racial diversity, respectively As of 2021,
Slide 15: On Pace to 100% Renewable Electricity
ON PACE TO 100% RENEWABLE ELECTRICITY 2018 Baseline WE ARE HERE 100% 100% 100% NORTH EUROPE GLOBALLY AMERICA Kick-off 2020 U.S. VPPA Finland VPPA 2030 2020 2023 69% TODAY 80% IN 2023 100% BY 2030 15
Slide 16: Delivering on Our Promise with Customers
DELIVERING ON OUR PROMISE WITH CUSTOMERS PLANET HEALTH PEOPLE HEALTH WATER CLIMATE FOOD HEALTH Manage up to Generate up to Make up to Protect up to 1.1 TRILLION 22% 36% 25% gallons of water of the world’s power of the world’s processed food of the world’s population MAKING PROGRESS TOWARD OUR 2030 G
Slide 17: Advancing a Leading Energy Customer's Ambition
ADVANCING A LEADING ENERGY CUSTOMER’S CASE STUDY AMBITION TO BECOME A NET-ZERO EMISSIONS ENERGY BUSINESS A major Ecolab international energy customer set a target to >75% become a net-zero emissions energy business by 2050. Through on-site expertise and technology, Nalco Water— Ecolab’s water and pr
Slide 18: Accelerating Sustainable Growth with a Leading F&B Customer
ACCELERATING SUSTAINABLE GROWTH CASE STUDY WITH A LEADING F&B CUSTOMER Ecolab’s work with a leading F&B customer has achieved substantial reductions in water, energy, and emissions while enhancing productivity across several NA manufacturing facilities. The partnership demonstrates our organizations
Slide 19: Social Action
SOCIAL ACTION LAURIE MARSH ECOLAB
Slide 20: Delivering on Our Promise in Social
DELIVERING ON OUR PROMISE IN SOCIAL PEOPLE PLACE PARTNERS COMMUNITY Attract and retain the best Inclusive growth culture Better progress together Invest in what matters PROGRESS TOWARD OUR 2030 GOALS IN 2021 Management Level Gender U.S. Pay Equity by Gender U.S. Diverse Supplier Spend Giving Aligned
Slide 21: People: Retained Our Team + Exceeded Our Goals
PEOPLE: RETAINED OUR TEAM + EXCEEDED OUR GOALS Retained our Team in Complex Times Exceeded our Representation Goals Overall Retention Management Retention Through concrete goals and focus we: % 3.4 ppts % 2.9 ppts 87% 94% increase in executive increase in executive level women globally level BIPOC i
Slide 22: Place: Inclusive Culture + Future of Work
PLACE: INCLUSIVE CULTURE + FUTURE OF WORK Furthered our Inclusive Culture Future of Work for All 2021 Goal Achievements A Shared Experience 100% 0% Flexibility Collaboration Difference in BIPOC turnover Pay equity in U.S. in U.S. management We + Me Deliver together Recognized as Employer of Choice C
Slide 23: Place: Fostering High Engagement
PLACE: FOSTERING HIGH ENGAGEMENT Agile and frequent listening a key engagement driver Our Approach: Our Latest Results: Partner with Humu 89% response rate Listen 2x per year Engagement Retention Inclusion Fast, nimble insights to make us better 79% Top of normal range 72% Exceeds normal by 2 ppts 7
Slide 24: Partners: Growing Our Impact Together
PARTNERS: GROWING OUR IMPACT TOGETHER 2021 Goal Achievements Exclusive pledge with long-standing partner Shared Commitment to: Implement DEI Increase Increase diverse Expand partners Nearly 2x strategy representation supplier spend and programs $ Increase in diverse supplier spend vs. 2020 Report di
Slide 25: Governance Action
GOVERNANCE ACTION MIKE MCCORMICK
Slide 26: Committed to Strong Governance
COMMITTED TO STRONG GOVERNANCE EXECUTIVE SHAREHOLDER BOARD DISCLOSURE COMPENSATION RIGHTS • Independent, • Aligned with • Strong • Transparent well-qualified and stockholder stockholder disclosure of engaged interests rights corporate • Diverse • Pay for governance • Annual election performance prac
Slide 27: Disclosures: Ahead of the Game
DISCLOSURES: AHEAD OF THE GAME Ecolab is well-positioned for compliance SEC Proposed Rule on Climate-Related Disclosures 27
Slide 28: Strengthening Board Independence
STRENGTHENING BOARD INDEPENDENCE Board independence is critical to good governance Updated Corporate Governance Principles Committee Chair Rotations Enhanced Lead Independent Director’s Rotated 40% of responsibilities Expanded scope of Committee chair to set agendas 2 Committee Chairs in 2021 Ch
Slide 29: Sustaining Growth by Doing Good
SUSTAINING GROWTH BY DOING GOOD CHRISTOPHE BECK
Slide 30: We Deliver on Our Customer Promises
WE DELIVER ON OUR CUSTOMER PROMISES PLANET HEALTH PEOPLE HEALTH WATER CLIMATE FOOD HEALTH Manage up to Generate up to Make up to Protect up to 1.1 TRILLION 22% 36% 25% gallons of water of the world’s power of the world’s processed food of the world’s population MAKING PROGRESS TOWARD OUR 2030 GOALS
Slide 31: Global Macro Trends Are in Our Favor
GLOBAL MACRO TRENDS ARE IN OUR FAVOR WATER STRESS FOOD SHORTAGE PUBLIC HEALTH CLIMATE CHANGE 56% 35% 30% 25% freshwater deficit more food more people more energy by 2030 by 2050 by 2050 by 2050 31
Slide 32: Our Market Opportunity Is Large and Growing
OUR MARKET OPPORUNITY IS LARGE AND GROWING $152B NEW CUSTOMERS $84B CIRCLE THE opportunity CUSTOMER $56B $13B 2021 SALES 32
Slide 33: We Deliver on Our Promises
WE DELIVER ON OUR PROMISES 2030 goals: DIVERSITY, EQUITY, AND WATER CLIMATE INCLUSION SAFETY 2030 GOAL 2030 GOAL 2030 GOAL 40% 50% 35% and 25% GOAL ZERO reduction in overall water impact reduction in CO2e management level gender and ethnic/racial diversity, respectively As of 2021, we: reduced overa
Slide 34: Doing Well by Doing Good
DOING WELL BY DOING GOOD 6% to 8% organic sales and 15% EPS growth ambition $152B market opportunity, leading with 8% share Impacting 1 trillion gallons of water and 36% of the world's food In 2021, protected enough water for over 700 million people 25,000 field experts, serving 3 million
Slide 35: Ecolab
ECOLAB ECOLAB