Slide 1: ESG At Our Core
ESG AT OUR CORE How Ecolab grows fast by doing what’s right DECEMBER 2020
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 Ac t of 1995. These forward-looking statements include, but are not limited to, statements regarding our financial and business
Slide 3: Agenda
AGENDA ▪ ESG is integral to our model ▪ Partnering to help customers grow in CHRISTOPHE BECK EMILIO TENUTA a sustainable way PRESIDENT & CHIEF SENIOR VICE PRESIDENT & OPERATING OFFICER CHIEF SUSTAINABILITY ▪ Leading in 2020 and beyond OFFICER ▪ Environment ▪ Social ▪ Governance ▪ Growing fast by doi
Slide 4: ESG Is Integral to Our Growth Model
ESG IS EMBODYING ESG EVERY DAY INTEGRAL TO OUR GROWTH MODEL 4
Slide 5: Our World's Concerns
OUR WORLD’S CONCERNS WATER FOOD HEALTH CLIMATE SOCIETY STAKEHOLDERS 5
Slide 6: Ecolab: Protecting People and What's Vital
ECOLAB: PROTECTING PEOPLE AND WHAT’S VITAL WATER FOOD HEALTH 1.1 TRILLION 36% 40 BILLION GALLONS MANAGED GLOBAL FOOD SUPPLY HANDS CLEANED PROTECTED CLIMATE SOCIETY STAKEHOLDERS SERVING IMPACTING LIVES IN 20% WORLD’S POWER 3 MILLION 170+ GENERATED CUSTOMER SITES WITH COUNTRIES DIVERSE TEAMS 6
Slide 7: Best Results at Lowest Total Cost
BREAKTHROUGH ON-SITE EXPERTISE TECHNOLOGY BEST RESULTS AT LOWEST TOTAL COST (Reduced water, energy, waste impact) GLOBAL KNOW-HOW PREDICTIVE INSIGHTS 7 7
Slide 8: Greater Impact and Higher Returns
GREATER IMPACT AND HIGHER RETURNS = > 25% Investment in Ecolab ECOLAB AT A GLANCE Nearly In 3 million 170+ 45,000 25,000 97 customer locations countries associates sales-and-service years of growth associates and innovation 8
Slide 9: Accelerating Meaningful Change With Our Customers Every Day
ACCELERATING MEANINGFUL CHANGE WITH OUR CUSTOMERS EVERY DAY In 2019, we partnered with customers to: CONSERVE SAVE REDUCE ELIMINATE 206 28 113 1.5 BILLION GALLONS TRILLION BTU MILLION POUNDS MILLION METRIC OF WATER OF ENERGY OF WASTE TONNES OF CO2E = = = = Annual drinking water Annual energy use Ann
Slide 10: The Faster Our Growth, The Higher Our Impact
THE FASTER OUR GROWTH, THE HIGHER OUR IMPACT WATER SAVINGS EPS (Adjusted) +12% EPS CAGR $7.00 (1.8x S&P 500) $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Consistent, double digit EPS growth Saving water equaling the annual
Slide 11: Partnering to Help Customers Grow in a Sustainable Way
PARTNERING TO HELP CUSTOMERS GROW IN A SUSTAINABLE WAY EMILIO TENUTA 11
Slide 12: Our Approach
OUR APPROACH CUSTOMERS OUR OPERATIONS Driving exponential operational and Embodying corporate responsibility and sustainability results with our customers sustainability in our own operations 12
Slide 13: Example: Aquanomic Ultra Low Water Laundry
EXAMPLE: AQUANOMIC ULTRA LOW WATER LAUNDRY Best-in-class results with every load: ▪ 40% reduction in water and energy ▪ 20% reduction in linen replacement ▪ 6x better softness Annual Customer Value (70 property hotel chain) Metric Cost Before Cost After Value Created Energy $1,380,000 $1,218,000 $16
Slide 14: Example: ADM Saving 2.3 Billion Gallons of Water
EXAMPLE: ADM SAVING 2.3 BILLION GALLONS OF WATER ADM has a key role to play in feeding the world and counts environmental responsibility among its core values. Ecolab partnered with ADM to drive operational and water management improvements across its global operations. ANNUAL SAVINGS ANNUAL SAVINGS
Slide 15: ECOLAB3D: Spreading Global Best Practices
ECOLAB3D: SPREADING GLOBAL BEST PRACTICES ECOLAB3D is a secure, cloud-based, digital platform for customers to deliver superior business performance and sustainability outcomes DATA INSIGHTS ACTION VALUE 15
Slide 16: Environmental Leadership
ENVIRONMENTAL LEADERSHIP 16
Slide 17: 2030 Impact Goals
2030 IMPACT GOALS We are dedicated to helping our customers thrive and make a positive impact in their operations, their communities and the world By 2030, we will help customers achieve: WATER CLIMATE 300 billion gallons of water saved 4.5 million metric tonnes reduced GHGs = the drinking water nee
Slide 18: Greater Impact Together
GREATER IMPACT TOGETHER CEOs learning and innovating together, helping manage watersheds and enabling access for all Collective ambitious goals that drive public sector 150 1/3 momentum WATER RESILIENCE COALITION MEMBERS: companies industrial water 18
Slide 19: Example: Microsoft Water Positive Goal
EXAMPLE: MICROSOFT WATER POSITIVE GOAL Water positive by 2030 – Microsoft’s fourth sustainability goal Our partnership focuses on: ▪ Operational water use ▪ Reducing water use intensity ▪ Replenishing water in water-stressed areas ▪ Digitizing water data ▪ Climate innovation fund ▪ Empowering custom
Slide 20: Broadening Beyond the "E"
BROADENING BEYOND THE “E” By driving progress in our own operations, we are a responsible partner and sustainable part of customers’ supply chain Our 2030 operational goals will focus on: DIVERSITY, EQUITY WATER CLIMATE SAFETY & INCLUSION IN OUR NET ROAD TO WORKFORCE, GOAL POSITIVE NET ZERO WORKPLAC
Slide 21: Social Leadership
SOCIAL LEADERSHIP ANNE GOTTE 21
Slide 22: Diversity, Equity and Inclusion at Ecolab
DIVERSITY, EQUITY AND INCLUSION AT ECOLAB A core value and long-standing area of focus WORKFORCE WORKPLACE MARKETPLACE EXTERNAL REACH + IMPACT ▪ 40% increase in female ▪ Externally recognized and ▪ Aggressive supplier ▪ Majority of corporate giving and BIPOC executives award-winning employer diversi
Slide 23: We're proud of our progress.
We’re proud of our progress. But we know there’s more we can do. 23
Slide 24: Our DE&I Commitments
OUR DE&I COMMITMENTS By 2030, we will: WORKFORCE WORKPLACE MARKETPLACE EXTERNAL REACH + IMPACT Ensure 50% 100% DOUBLE At least increase in woman pay equity our U.S. spend with 80% and people of color (audited by third party) diverse suppliers of our community at management every year for next giving
Slide 25: DE&I Is Essential to Our Success
DE&I IS ESSENTIAL TO OUR SUCCESS Integrated across our operating model COMPANY PURPOSE AND EMPLOYER BRAND WORKFORCE Talent Management Talent Acquisition People Analytics Training & Employee WORKPLACE Offerings & Recognition Legal / Marketing/ Development Resource Compliance Communications Groups Cus
Slide 26: How We Will Get There
Enhanced paid parental leave. Resources for school-aged children HOW WE WILL GET THERE and elder-care. Examples of our work today COMPANY PURPOSE AND EMPLOYER BRAND Talent Management People Analytics WORKFORCE Focused Talentdevelopment Managementprograms for Talent Acquisition Monthly executive revi
Slide 27: Governance Leadership
GOVERNANCE LEADERSHIP MIKE MCCORMICK 27
Slide 28: Committed to Strong Governance
COMMITTED TO STRONG GOVERNANCE BOARD EXECUTIVE SHAREHOLDER DISCLOSURE COMPENSATION RIGHTS • Independent, • Aligned with • Strong • Transparent well-qualified and stockholder stockholder disclosure of engaged interests rights corporate • Diverse • Pay for • Annual election governance • 38% women perf
Slide 29: We Grow By Doing What's Right
WE GROW BY EMBODYING ESG EVERY DAY DOING WHAT’S RIGHT CHRISTOPHE BECK 29
Slide 30: Global Trends Driving Growth
GLOBAL TRENDS DRIVING GROWTH Water Food Health Climate ISSUES 56% 35% 22% 25% freshwater deficit more food population aged 60+ more energy by 2030 by 2050 by 2050 by 2050 RESPONSE 300 BILLION SAFE FOOD FOR 50 BILLION 4.5 MILLION GALLONS 1.8 BILLION CLEAN HANDS METRIC TONNES GHG PEOPLE REDUCED = + +
Slide 31: Clear Commitments
CLEAR COMMITMENTS Our 2030 operational goals will focus on: DIVERSITY, EQUITY WATER CLIMATE SAFETY & INCLUSION IN OUR NET ROAD TO WORKFORCE, GOAL POSITIVE NET ZERO WORKPLACES ZERO AND CARBON COMMUNITIES 31
Slide 32: Clear Recognition
CLEAR RECOGNITION Listed in DJSI World #1 in the chemical industry Received November 2020 Received October 2020 32 32
Slide 33: Clear Reporting
CLEAR REPORTING 2019 REPORTING Corporate Corporate Annual Report ESG Overview Responsibility Sustainability and Form 10-k GRI Report Report 33
Slide 34: Growing Fast By Doing Good
GROWING FAST BY DOING GOOD Guided by our enduring values We reach our goals. We work together with diverse Delivering results for our customers, perspectives shareholders and each other. Working together for the good of the team and total company. We do what’s right. Being honest, reliable and genui