2016 Sustainability Report“Starting with technology and working toward the improvementof every life on the planet allows us to think holistically about
addressing global challenges.”— Inge G. Thulin

Chairman of the Board,
President and Chief Executive Officer of 3M Company

3M 2016 Sustainability Report

Introduction | 2

Table of Contents
Introduction
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Message from our CEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Message from our CSO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Our Sustainability Strategy .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Featured Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Goals and Progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Taking Action

On the cover:

3M Design illuminated creativity
at Milan Design Week with the
Urban Tree Lounge, an installation
combining sustainability, materials
design and architecture.

Our Materiality Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20

Product Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23

Responsible Sourcing .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

29

Economic Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

36

Employee Engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

39

Engaging Stakeholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

42

Collaborating with Our Communities . . . . . . . . . . . . . . . . . . . . . . . . . .

46

Respecting Human Rights .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

54

Public Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

59

Global Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Raw Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

65

Water .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Energy and Climate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

80

Health and Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

95

Education and Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

106

Corporate Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

129

Board of Directors .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

145

Corporate Code of Conduct .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

148

Managing Enterprise Risks and Opportunities . . . . . . . . . . . . . . .

153

About Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
Indices: GRI and the UN Global Compact . . . . . . . . . . . . . . . . . . . . . . .

159

External Assurance Statement . . . . . . . . . . . . . . . . . . . . . . . . . Post Index

3M 2016 Sustainability Report

Introduction | 3

Message from Our CEO
Inge G. Thulin

As the global population marches toward 9 billion
people, it is creating an even more urgent need toaddress sustainability challenges — from air pollution
and water shortages to food safety and clean energy.

Our greatest opportunity to overcome these challenges
lies with innovation and collaboration. As a science
company, 3M partners with our customers andcommunities to make the world cleaner, safer andstronger. Starting with technology and working toward
the improvement of every life on the planet allows us tothink holistically about addressing global challenges.
Our investments in sustainable technologies are guided
by our customers’ needs. These include glass bubbles
that make cars lighter and more fuel efficient, films thatmake smartphones and buildings more energy efficient,and low global warming potential immersion fluid thatcools data centers.

Beyond collaborating with customers, 2015 was a yearof many partnerships toward building a better future:•

We joined other global companies to help
municipalities implement recycling programs
through the Closed Loop Fund. This landmark
partnership will invest $100 million to protect
the environment, generate revenue for cities andcreate thousands of jobs.

•

We made an agreement to purchase electricity
from a wind farm, helping us work toward ourrenewable energy goals for 2025.

“Starting with technology and working toward

the improvement of every life on the planet
allows us to think holistically about addressing
global challenges.

”– Inge G. Thulin

Chairman, President and CEO

3M 2016 Sustainability Report•

We announced a revised pulp and paper sourcing
policy providing leading-edge protection forforests, critical habitats and forest communities
worldwide.

•

During 3M’s Global Volunteer Day, 3Mers from80 international locations renovated schools,
built outdoor learning centers and engaged
thousands of students on the power of scienceto improve lives. This supports our broader
work to encourage young people to enter
STEM-related fields.

Also in 2015, our Pollution Prevention Pays (3P) program
celebrated its 40th anniversary, having prevented over
2.1 million tons of pollution and saving nearly $2 billion(USD) since 1975.
With an eye toward the future we launched our 2025
sustainability goals. These goals range from investing

Introduction | 4

in sustainable materials and energy efficiency to water
management and helping our customers reduce theirgreenhouse gas emissions through the use of our
products. We have also set goals around building adiverse workforce and worker and patient safety inhealth care and industrial settings. We continue toinvest in developing products that help our customers
reach their environmental goals, as well as increasing
our social sustainability efforts as demonstrated by our
ongoing commitment to the UN Global Compact andits principles.
Moving forward, our emphasis on applying 3M scienceto improve lives will continue to grow, as will ouremphasis on collaboration — with our customers,
partners and communities.
Inge G. Thulin
Chairman of the Board, andPresident and Chief Executive Officer, 3M

3M 2016 Sustainability Report

Introduction | 5

Message from our Chief Sustainability Officer
Jean Bennington Sweeney
3M is driven by our Vision:
3M Technology advancing every company
3M Products enhancing every home
3M Innovation improving every life
Sustainability is embedded in every aspect of that vision.
Our world is changing more rapidly than ever before
and the global community faces evolving challenges ofaccess to clean water; access to education and jobs;
access to adequate healthcare; a changing climate;
and a demand for raw materials that strains our world’s
resources. As a company rooted in scientific exploration,
we are applying our technological expertise to help solve
some of these challenges that serve as barriers to theimprovement of every life on the planet.
We believe the path to progress begins with a clear
purpose and that the best ideas empower people tothink, create and live with intent. A sense of purpose is at
the heart of how we approach every idea, every product,every life and every community we touch.
We invite you to learn more about our progress toward
this ambition, as well as our strategy and goals moving
forward, outlined in this report. And then, join us on thisjourney toward creating a better world.
Jean Bennington Sweeney
Chief Sustainability Officer“A sense of purpose is at the heart of how weapproach every idea, every product, every lifeand every community we touch.

”– Jean Bennington Sweeney
Chief Sustainability Officer

3M 2016 Sustainability Report

Introduction | 6

Who We Are
Improving lives since 1902.

15%
As a signatory member, 3M
supports the UN Global Compact’s
10 principles in the areas of humanrights, labor, environment andanti-corruption.

nearly1.5
billion89+

culturethousand

3Mers use actual work time tofollow their own ideas andinsights in pursuit of innovation.

Global citizens living a passion
for applying science to life.

16x

300+
thousand$In cash and product donations
invested in 3M communities
since 1953.

Chosen by RobecoSAM to be
included in the Dow Jones
Sustainability Index.

2.1

10

Our visionary Pollution Prevention
Pays Program has prevented
over 2.1 million tons of air, water
and waste pollution over the last
40 years.

You are rarely more than 10 feetaway from 3M Science.

millionfeet

Hours volunteered by 3Mers
in 2015 alone.

200
Operations in over 70 countries
and serving customers in nearly
200 countries.

Our Sustainability
Strategy
Building on our long-standing leadership inenvironmental stewardship and commitment
to customer-inspired innovation, we focus
our Sustainability strategy on overcoming
the global challenges that serve as barriers to
improving every life.

3M 2016 Sustainability Report

Our Sustainability Strategy | 8

Our Sustainability Strategy
As a company rooted in scientific exploration, we areapplying our technological expertise to help solve someof the world’s biggest challenges around:•

Raw Materials

•

Water

•

Energy and Climate•

Health and Safety•

Education and Development

Importantly, overcoming global challenges requires
recognizing their interdependence: the importanceof water access and its impact on health; energy anddependence on raw materials, etc. It also requires a
deep commitment across the organization and collaboration with partners, customers and communities.

and opportunity, and communities are safe, healthy,
connected and thriving.
We aim to help make that world a reality. But anambition that big won’t be easy. So we at 3M pledge thefollowing:•

We will push ourselves to create the science andtechnology to achieve these goals.

•

We will encourage individual passion andcuriosity – within the company, with our partners,
and within our communities.

•

We will acknowledge that we cannot succeed
alone and commit to stimulating and supporting
collaborations to improve every life on earth.

In 2013, we created a Sustainability Center of Excellence
to integrate Sustainability across our businesses. We
continue to invest significantly to drive Sustainability
throughout our operations, product development,
marketing and more – working closely with our suppliers
and our customers. We now embed Sustainability into
the strategic planning process for every region, every
market, every business at 3M.

Our Approach to Goal-Setting

Internally, we’re working to create a results-driven
culture, as well as a purpose-driven culture. Our leaders
are driving a sustainability culture top-down while
supporting and encouraging ideas and commitment fromthe bottom up.

The power is in partnership. Connection and collaboration is how we have operated at 3M since 1902.
Moving forward, we’re increasingly focusing this collaboration on working with our customers and communities
to achieve their sustainability goals.

And with our customers and partners, we’re continuing
to demonstrate that 3M is a unique and indispensable
strategic partner; one that can solve business problems
using our core strengths and our Sustainability expertise.
We are moving from provider of products to partneringwith customers to understand their Sustainability goals
and challenges and working together to overcome them.

We have been setting global environmental goals since1990. A strong part of our company history, these goals
have helped dramatically reduce our own environmental
footprint and established us as a leader in environmental
stewardship.

Our Every Life ambition
Our Every Life ambition is the platform by which wetell our story, and the “north star” toward which we
focus our overall intent. We work to imagine a world
where every life is improved – where natural resources
are reliably available, people have access to education

Our 2025 sustainability goals serve as a roadmap forour journey toward improving every life. Our ambition
is to realize a world where every life is improved –where natural resources are reliably available, people
everywhere have access to education and opportunity,and communities are safe, healthy, connected
and thriving.

We are proud to expand beyond our own operations byfocusing more on supporting the Sustainability goals
and needs of our customers and our communities. While
we recognize the importance of what we do in our own
operations, and will continue to improve accordingly,
we see that far greater impact can be realized when wepartner to understand and overcome the challenges weface in partnership with others. In addition to environmental challenges, we recognize the connectedness of3M 2016 Sustainability Reportsocial challenges we face in pursuing a better world.
Our strategy, goals, and report are organized aroundthese challenges and how we’re addressing them forthe sustainability of our business, our planet, and ourdaily lives. To learn more about how we identified andprioritized these key challenges, see the materiality
section of this report.
To learn more about our goals moving forward, please
see the 2025 Goals section of this Report.

Our Sustainability Strategy | 9

3M 2016 Sustainability ReportFeatured Awards | 10

3M Awards 2015
Dow Jones Sustainability Index
For the 16th consecutive
year, 3M was selected
as a member of the Dow
Jones Sustainability
Index, a global stock index that recognizes andtracks the performance of leading sustainability-driven companies worldwide. As one of the mosthighly regarded rankings in terms of sustainability
performance, this index is created by research analysts
who perform an in-depth study of environmental, socialand economic performance.

The World’s Most Ethical (WME)
Companies®

The Ethisphere®
Institute ranked 3M
as one of The World’s
Most Ethical (WME)
Companies® in the
Industrial Manufacturingcategory. This standing recognizes companies that
go beyond making statements about doing businessethically and translate those words into action.
WME honorees promote ethical business practices
internally and exceed legal compliance minimums andshape future industry standards by introducing bestpractices. The Ethisphere® Institute is an independent
center of research that promotes best practices incorporate ethics and enables organizations to enhance
relationships with employees, business partners,
investors.

EcoVadis Supplier Sustainability Ratings
EcoVadis awarded 3M
a Gold Recognition Levelfor achievements inthe top 1% of suppliers
assessed in corporate social responsibility (CSR) in
global Supply Chains.

Other Featured Awards•

3M was ranked 170 out of 500 in the 2015
Newsweek Green Rankings.

•

3M ranked in the top 100 on Forbes' inaugural listof America's Best Employers.

•

3M ranked 32nd in Most Reputable Companies in
the World•

3M ranked 12th in World's Most RespectedCompanies (Forbes)•

3M Health Care received the PracticeGreenhealth 2015 “Champion for Change”
Award.

•

3M is now in the top 100 of Fortune 500
companies.

•

3M received the Association of Cable
Communicators (ACC) Beacon Award for the
excellent work done during the Discovery
Education 3M Young Scientist Challenge.

•

3M was ranked #24 out of 100 in Workforce
Magazine’s 2015 list of best companies for humanresources.

•

3M was ranked #30 on Corporate Responsibility
Magazine's list of 100 Best Corporate Citizens in
2015.

•

3M made Fortune's annual list of the 50 mostadmired companies in the world.

•

The Cause Marketing Forum awarded 3M and
DoSomething the 2015 Silver Halo Award for Best
Education Campaign.

Our Goals
and Progress
We have been setting goals since 1990.
See our progress and our next steps.

3M 2016 Sustainability Report

Our Goals and Progress | 12

Delivering on our 2015 Sustainability Goals
Setting goals to drive Sustainability progress is nothing
new at 3M. We have been setting global environmental
goals since 1990. A strong part of our company history,these goals have helped dramatically reduce our own
environmental footprint and established us as a leader
in environmental stewardship. Our 2015 Sustainability
Goals program continued our drive to reduce our own
environmental impacts, but also expanded our targets
to include social responsibility efforts and economic
success factors.

The 2015 Sustainability Goals were:
Environmental Stewardship•

Reduce volatile air emissions 15% by 2015 from2010 base year, indexed to net sales•

Reduce waste 10% by 2015 from 2010 base year,
indexed to net sales•

Improve energy efficiency 25% by 2015 from2005 base year, indexed to net sales•

Reduce greenhouse gas emissions 5% by 2011
from 2006 base year, indexed to net sales (thisgoal was set in 2007)•

Develop water conservation plans in 3M
locations where water is categorized as scarceor in a stressed area.

Social Responsibility•

Develop community stakeholder engagement
plans at 3M facilities•

Promote a road to Environmental, Health and
Safety (EHS) Excellence at new 3M Sites

Economic Success•

Review at least 80% of supplier spending in thefollowing countries: China, India, Korea, Malaysia,
Taiwan, Thailand, Brazil, Mexico, Russia, andTurkey to drive conformance with 3M EHS,
Transportation & Labor/Human Relations
Standards by 2015•

Enhance the environmental sustainability
attributes of new products

We successfully achieved our environmental
stewardship goals on VOC air emission reduction,water conservation planning, greenhouse gas emission
reduction and energy efficiency. We have encounteredmultiple challenges in waste reduction, including
currency translation issues, and are re-doubling ourefforts in this area.
Our environmental stewardship goals are indexed to
net sales, however internally we track progress indexed
to pounds of production (product output). Our pounds
of production have increased at a faster rate than sales
from 2010 to 2015 yielding more favorable results.
We are proud of our performance against our Social
Responsibility and Economic Success goals as well, andin our 2025 Sustainability Goals, we are significantly
expanding our commitments in these important areas.

3M 2016 Sustainability Report

Our Goals and Progress | 132015 Goals and Results
Goal Achieved

Goal Achieved

Energy reduction

VOC reduction

nearly31%

30%

from 2005 baseline*

since 2010 baseline*

Pollution Prevention Pays Program
Celebrated its

has prevented overin 2015

tons of pollutants

40th
2.1
anniversary million

and saved nearly$2billion(USD)

Water use reductionMore thanSupplier collaboration withsince 2005*

volunteer hours
from employees
and retirees

of production paper
purchases on sustainable
paper sourcing

42%
Between 2002 and2015, we voluntarily
achieved a(*Indexed to net sales)(*Indexed to net sales)

300,000

69%

98%

absolute reduction in ourgreenhouse gas emissions.

3M 2016 Sustainability Report

Our Goals and Progress | 14

3M 2015 Goals and Results
Social Performance, Employees
MetricTotal Global Employees at Year-End

Metric Units

RY-2011

RY-2012

RY-2013

RY-2014

RY-2015

2014-2015
AnnualChange, %2011-2015
Change, %Total Number

84,20086,60089,60090,70090,400-0.331

7.36

Total Number Part-Time Employees

Total Number

2,530

2,430

2,580

2,560

2,520

-1.56

-0.395

Total Number Full-Time Employees

Total Number

81,70084,10087,00088,20087,900-0.340

7.59

%

33.60

33.70

33.70

33.90

33.90

0.000

0.893

%

24.00

24.60

25.30

26.10

26.90

3.07

12.10

(Headcount)

Percentage of Female Employees toTotal Employees
Percentage of Female Employees inManagement Positions

Financial Performance

Net Sales

Million $USD

29,60029,90030,90031,80030,300

-4.72

2.36

Operating Income

Million $USD

6,180

6,480

6,670

7,140

6,950

-2.66

12.50

Net Income Attributable to 3M

Million $USD

4,280

4,440

4,660

4,960

4,830

-2.62

12.90

Per Share-Basic

Actual ($USD)

6.05

6.40

6.83

7.63

7.72

1.18

27.60

Per Share-Diluted

Actual ($USD)

5.96

6.32

6.72

7.49

7.58

1.20

27.20

%

25.0

25.0

25.0

34.0

48.0

41.20

92.00

Million $USD

1,380

1,480

1,670

1,490

1,460

-2.01

5.80

Million $USD

1,570

1,630

1,720

1,770

1,760

-0.565

12.10

Employee Compensation and Benefits

Million $USD

8,060

8,350

8,730

8,840

8,790

-0.566

9.06

Payments to Providers of CapitalMillion $USD

1,770

1,800

1,900

2,390

2,700

13.00

52.50

Provision for Income Taxes

Million $USD

1,670

1,840

1,840

2,030

1,980

-2.46

18.60

%

31.70

33.10

33.00

32.80

32.10

-2.13

1.26

(total capital = debt plus equity)
Capital Expenditures
Research, Development and RelatedExpenses

New Product Vitality Index (NPVI)
as Percentage of Net Sales

RY-2012

RY-2013

RY-2014

RY-2015

2011-2015
Change, %Metric Units

Total Debt to Total Capital

RY-2011

2014-2015
AnnualChange, %Metric3M 2016 Sustainability Report

Our Goals and Progress | 15

Community Engagement
RY-2011

RY-2012

RY-2013

RY-20142014-2015
AnnualChange, %RY-2015

2011-2015
Change, %MetricMetric Units

Total Global Giving

Million $USD

66.30

60.30

61.60

81.30

72.80

-10.509.76

Total Cash Donations

Million $USD

27.90

30.30

30.30

30.90

34.10

10.40

22.20

Total In-Kind Donations

Million $USD

32.40

31.30

51.00

62.90

38.70

-38.5019.40

Environmental Performance
Environmental Management System- Metric

Metric Units

Total Number of Significant Spills

Total Number

RY-2011

RY-20120

RY-20130

RY-20140

RY-201500Significant spill, spills included in the organization’s financial statement
Number of Significant Fines

1

Total Number

0

2

1

0

Significant fine, fine or penalty over $10,000
Total Monetary Value of Significant Fines
Total Number of Non-Monetary
Sanctions
Environmental Liability Accrued atYear End

Million $USD

0.065

0

0.063

0.11310

Total Number

1

0

2

1

0

Million $USD

0

0

0

0

0

Air Emissions - Metric

Metric Units

Absolute Scope 1 Emissions (Direct)

Million Metric Tons CO2e

Absolute Scope 1 Emissions (Direct)

Metric Tons CO2e

Absolute Scope 2 Emissions (Indirect)

Million Metric Tons CO2e

Absolute Scope 2 Emissions (Indirect)

Metric Tons CO2e

RY-2011

RY-2012

RY-2013

RY-2014

RY-2015

2014-2015
AnnualChange, %

4.06

4.37

5.59

4.39

3.77

-14.104,060,000

4,370,000

5,590,000

4,390,000

3,770,000-14.10

2.03

2.25

2.36

2.24

1.86

-17.002,030,000

2,250,000

2,360,000

2,240,000

1,860,000-17.002011-2015
Change, %*2012-2015 US EPA GHG-MRR/IPCC AR5 based inventory accounting is not directly comparable to 2002-2011 WRI/IPCC TAR, AR4 based GHG accounting.
*2002 Inventory recalculated according to US EPA GHG-MRR/IPCC AR5 methodology (2.7% Increase in absolute emissions over original reported value).
Total Scope 3 Emissions (Upstream)

Million Metric Tons CO2e

Total Scope 3 Emissions (Upstream)

Metric Tons CO2e

8.12

10.70

10.60

11.10

9.50

8,120,000

10,700,000

10,600,000

11,100,000

9,500,000

Note: Net GHG emissions based on the categories evaluated. Due to change in boundaries, Scope 3 Upstream emissions should not be compared on a year-on-year basis.
Total Greenhouse Gas Emissions

Million Metric Tons per Net(indexed to net sales)

Sales (MM $USD)

Total Greenhouse Gas Emissions(Absolute-Kyoto and Non-Kyoto)
Total Volatile Organic Compound
Emissions (Absolute)

206

221

258

208

186

-10.60Million Metric Tons CO2e

6.09

6.62

7.95

6.63

5.63

-15.10Metric Tons

6,050

5,980

5,430

5,550

4,770

-14.10-21.20

0.204

0.200

0.176

0.174

0.157

-9.75

-23.0

Total Volatile Organic Compounds

Metric Tons per Net Sales

Emissions (indexed to net sales)(MM $USD)

2015 Goal Achieved: Volatile Organic Compound (VOC) Reduction 15% by 2015 from 2010 base (indexed to net
sales); baseline year was 0.228 metric tons per net sales (MM $USD)

3M 2016 Sustainability Report

Our Goals and Progress | 16

Energy - Metric

Metric Units

Total Energy Use (Absolute)
Total Energy Use (Absolute)

Total Energy (indexed to net sales)

2014-2015
AnnualChange, %2011-2015
Change, %RY-2011

RY-2012

RY-2013

RY-2014

RY-2015

MMBTUs26,600,000

27,700,000

28,700,000

29,100,000

28,100,000

-3.31

5.64

MWh

7,810,000

8,110,000

8,400,000

8,520,000

8,250,000

-3.31

5.64

902

931

930

912

929

1.86

2.99

MMBTUs per Net Sales(MM $USD)

2015 Goal Achieved: Energy Conservation 25% by 2015 from 2005 base (Indexed to net sales); 2005 baseline
was 1320 MMBTU per net sales (MM $USD)

Total Fuel Oil #1, #2, #6

MMBTUs549,000

1,490,000

1,490,000

1,630,000

1,330,000-18.40142

Total Jet FuelMMBTUs184,000

163,000

143,000

161,000

153,000-4.97-16.80Total Propane

MMBTUs133,000

132,000

138,000

192,000

201,000

4.69

51.10

Total Gasoline and Diesel

MMBTUs202,000

226,000

190,000

209,000

269,000

28.70

33.20

Total Coal

MMBTUs

0

0

0

0

0

Total Natural Gas

MMBTUs15,100,000

14,800,000

15,500,000

15,900,000

14,400,000

-9.43

-4.64

Total Electricity Consumption

MMBTUs9,600,000

9,980,000

10,300,000

11,100,000

10,600,000

-4.50

10.40

Total Steam Consumption

MMBTUs833,000

840,000

902,000

1,010,000

1,130,000

11.90

35.70

Total Heating Consumption

MMBTUs

0

0

0

0

0

Waste - Metric

Metric Units

Total Waste Generated (Absolute)

Metric Tons

Total Waste (indexed to net sales)

Total Hazardous Waste (Absolute)% Data Coverage Total Hazardous Waste(Absolute)
Total Nonhazardous Waste (Absolute)
Total Waste Recycled and Reused(Absolute)

Metric Tons per Net Sales(MM $USD)

RY-2011

RY-2012

RY-2013

RY-2014

RY-2015

2014-2015
AnnualChange, %2011-2015
Change, %179,000

179,000

192,000

205,000

211,000

2.93

17.90

6.05

6.00

6.22

6.44

6.95

8.05

15.00

2015 Goal Not Achieved: Waste Reduction 10% by 2015 from 2010 base (Indexed to net sales); 2010 baseline
was 6.61 metric tons per net sales (MM $USD)

Metric Tons

41,30039,70039,40041,10044,100

7.30

6.78

%

96.0%

96.0%

97.0%

98.0%

97.0%

-1.02

1.04

Metric Tons

138,000

140,000

153,000

164,000

166,000

1.22

20.30

Metric Tons

212,000

213,000

229,000

235,000

231,000

-1.70

8.96

47,90051,10066,00069,50065,400

-5.90

36.50

Onsite Recycle & Reuse

Metric Tons

Offsite Reuse

Metric Tons

34,90033,80032,00031,90031,800-0.313-8.88

Offsite Recycle

Metric Tons

129,000

128,000

131,000

134,000

134,000

0.000

3.88

Historically Offsite Reuse and Onsite Recycle Reuse data included the production of Roofing Granules, but due
to the nature of their business, Industrial Mineral Products recycle and reuse number are no longer in the total.

3M 2016 Sustainability Report

Our Goals and Progress | 17

Water - Metric

Metric Units

Total Water Use (Absolute)

Million Cubic Meters

RY-2011affected by withdrawal of water with

Total Number

water conservation planning efforts
Total Water Use (indexed to net sales)

Million Cubic Meters per Net
Sales (MM $USD)

RY-2013

RY-20142014-2015
AnnualChange, %RY-2015

2011-2015
Change, %

41.10

43.40

43.30

42.50

42.10

-0.888

2.43

18

24

22

27

25

-7.41

38.90

Sites located in Water Stress/Scarce
Areas; water sources significantly

RY-20123M uses the WBCSD Global Water Tool to screen site locations for water stress/scarce levels and prioritizes
conservation plan development based on internal criteria.
0.001400.001400.001400.001300.00139

6.92-0.714

Health and Safety

MetricGlobal Lost Time Incident Rate

Global Recordable Incident Rate
Work Related Fatalities - 3M Employees
Work Related Fatalities - 3M
Contractors
Work Related Fatalities - Total Number

Metric Units
Per 100 3M Employees

RY-2011

RY-2012

RY-2013

RY-20142014-2015
AnnualChange, %RY-2015

2011-2015
Change, %

0.38

0.39

0.34

0.36

0.32

-11.1

-15.8

1.46

1.42

1.41

1.45

1.22

-15.9

-16.4

Total Number

0

1

1

0

0

Total Number

1

1

1

0

0

Total Number

1

2

2

0

0

(200,000 work hours)
Per 100 3M Employees(200,000 work hours)

Supplier Responsibility

MetricTotal Number of Supplier Reviews,
cumulative number

Metric Units

Cumulative Number

RY-2011

RY-2012

RY-2013

RY-2014

RY-2015

1,890

2,510

3,210

3,880

4,570

74

78

80

81

86

2014-2015
AnnualChange, %2011-2015
Change, %17.8

Review 80% of Supplier Spend in Top 10
High Risk Countries for Alignment with%

3M Supplier Policy and Standards
Values listed in the table above have been rounded and therefore do not match the raw values exactly. All calculations on the tabulated data use the full precision of the number. Due torounding, calculations performed using values from the above table may not match the result of the same calculation performed in the same table.

142

3M 2016 Sustainability Report

Our Goals and Progress | 18

2025 Goals$

Raw Materials

10%

30%

• Invest to develop more sustainable materials andproducts to help our customers reach theirenvironmental goals.
• Reduce manufacturing waste by an additional 10%,indexed to sales.
• Achieve “zero landfill” status at more than 30% of

manufacturing sites.

• Drive supply chain Sustainability through targeted raw

material traceability and supplier performance assurance.

Water

10%

100%

• Reduce global water use by an additional 10%, indexed

to sales.

• Engage 100% of water-stressed/scarce communities

where 3M manufactures on community-wide
approaches to water management.

Energy &Climate

30%

25%

50%

250
million• Improve energy efficiency indexed to net sales by 30%.
• Increase renewable energy to 25% of total electricity use.
• Ensure GHG emissions at least 50% below our 2002

baseline, while growing our business.

• Help our customers reduce their GHGs by 250

million tons of CO2 equivalent emissions through useof 3M products.

Education &Development

$

100%

2x

• Invest cash and products for education, community andenvironmental programs.

• 100% participation in employee development programs

to advance individual and organizational capabilities.

• Double the pipeline of diverse talent in management tobuild a diverse workforce.

Health &Safety5

million• Provide training to 5 million people globally on worker

and patient safety.

Taking Action
Our materiality strategy drives our workin areas most significant to us and our
stakeholders.

3M 2016 Sustainability Report

Our Materiality Strategy | 20

Taking Action

Our Materiality Strategy

Materiality Overview
At 3M, we look at sustainability in terms of shared global
needs and the future of our business. As the population
grows, particularly in emerging economies, challenges
like energy availability and security, raw material
scarcity, human health and safety, education, andemployment must be addressed to ensure people acrossthe globe can lead healthy, fulfilling lives. Sustainability
materiality assessments are vital components of acompany’s sustainability strategy and reporting.
For more than 40 years, 3M has been a leader among
global corporations in Sustainability actions andmeasures, beginning with the creation of our groundbreaking Pollution Prevention Pays (3P) Program in
1975…and leading to a broad portfolio of sustainableproducts today.
As a global corporation, we believe that we havea significant responsibility to society in general, andespecially to the communities in which we live and work.
Fulfilling our responsibility is important both from anenvironmental stewardship perspective and as a key
competitive strategy.

We have created a robust, stakeholder-driven approachto sustainability materiality that serves as a foundationfor our sustainability strategy and reporting. Throughunderstanding the critical sustainability issues from bothinternal and external perspectives, we can deepen oursocial license to operate and develop corporate strategy,
goals, targets, programs, initiatives and a stakeholder
engagement strategy to advance sustainability globally.
Data provided in our Sustainability Report includes
information on the most material issues identified thathave the potential to impact our reputation and that areof high importance to internal and external stakeholders.
We are a diversified company, so several other environmental-related topics and key performance indicatorsthat have relevance and are important to various sectorsof the company are also included in the report.
Starting in 2013, 3M began a comprehensive
sustainability materiality assessment and stakeholder
engagement project. 3M commissioned GlobeScan,an independent research consultancy, to assist in better
understanding stakeholders’ perspectives of key socialand environmental issues. In addition, the study assisted

3M 2016 Sustainability Report

Our Materiality Strategy | 21

in assessing 3M’s corporate reputation and leadership
opportunities in the area of sustainability.

Environmental Compliance

In 2014, the research with Globescan concluded,
resulting with a key output: the evidence-based­sustainability materiality matrix. This matrix plots
significant issues related to sustainability along threeaxes. From this matrix, 3M and the readers of this report
can understand the degree of importance stakeholders
accord to each issue, the ability of 3M to make apositive difference on these issues and the level ofimpact these issues may have on our reputation. The
matrix is evidence-based, as each point on this matrix isdetermined from quantitative measures gained from an
online survey as described below.

Occupational Health and Safety

We identified and evaluated relevant aspects of 3M’ssustainability performance as defined by our internaland external stakeholders. Materiality with respect
to sustainability reporting, as defined by the Global
Reporting Initiative (GRI) guidelines, includes topics
and indicators that reflect the organization’s significant
economic, environmental, and social impacts or would
substantively influence the assessments and decisionsof stakeholders.
The material aspects defined in the Sustainability
Materiality Matrix have been identified through ourmateriality assessment process. The sustainability
materiality assessment determined the material aspects
for a wide variety of 3M stakeholders outside of 3M
as listed in this report. External 3M stakeholders weresurveyed with a survey sample that was inclusive acrossgeography, stakeholder type, and function.
All material aspects defined within this report per ourcomprehensive sustainability materiality assessment are
deemed material for all entities within the 3M organization. As a large corporation, 3M has diverse global
operations and serves diverse markets worldwide. While
the prioritization for the various aspects may vary within
3M operations and geographies, they are still material.
Material aspects include:
Economic Performance
Raw Material
EnergyWater
EmissionsEffluent and Waste

Employment
Training and Education
Freedom of Association and Collective Bargaining
Child Labor
Forced or Compulsory Labor
Local Communities
Anti-Corruption
Customer Health and Safety
Product Service and Labeling
Product Responsibility ComplianceIn addition to the topics above, and based on insights
gained through our materiality assessment process,we have continued to increase communication of ourSustainability efforts. In 2015, we launched our Every
Life ambition, a platform for sharing and connecting
our Sustainability efforts with key internal and external
stakeholders. More details on this platform are in thestrategy section of this report.

Materiality – Today and the Future
3M has a long history of environmental stewardship withproven results that help the company be successful andalso provide positive benefits to our many stakeholders.
That is why we made such an active effort to involve
stakeholders when we developed our newest set of
Sustainability Goals – goals that further advance ourenvironmental stewardship efforts and go well beyond
to provide profound societal benefits.
Our 2025 Sustainability Goals were developed from thesustainability materiality assessment and with input fromgovernmental regulatory bodies, non-governmentalorganizations, shareholders, employees, customers,
suppliers, academia and many others. We look far
beyond compliance and think holistically about how ouroperations and products affect the world and how we
can truly use 3M technology and innovation to advanceevery company, enhance every home and improve
every life.
Our 2025 Sustainability Goals reflect 3M’s vision, brandand commitment to continuously improve. We want to
let everyone know that the goals we set are both theright thing for the company and for the world.

3M 2016 Sustainability Report

Our Materiality Strategy | 22

Stakeholders increasingly expect companies to do things
that benefit society in more direct ways and are notsolely focused on benefits to the company. At 3M, wetook this to heart and worked to establish wide-ranging
goals that do just that. Our goals focus around Energy
and Climate, Raw Materials, Health and Safety, Water
and Education and Development.
We set these goals while understanding that we haveto be successful as a company while also supportingthe communities where we operate. It’s a two-pronged
approach that is both practical and thoughtful; it’s bothanalytical and filled with the integrity 3M is known for.

Sustainability is all about finding those intersections
where our goals move us forward toward growth andalso supports the company Vision to advance, enhanceand improve.
At 3M, Sustainability also includes collaborating tofind better solutions for customers. As the world
population grows, particularly in emerging economies,
global challenges must be addressed together to ensure
we can all live healthy, fulfilling lives. That’s why we arecommitted to partnering with customers to identify andcollaborate on solutions to address their goals.

3M Sustainability Materiality Matrix
View of Customers, External and Internal Stakeholders

Perceived Ability Of 3M To
Make A Positive Difference

Low

Water Quality
Water Shortages

High

Community Safety & HealthImpact On 3M Reputation

Air Quality
Climate Change
Supporting
Community

Availability of Sustainable
Products and Services

Energy Use
Reducing Waste
Working
Conditions
Reducing Toxic
Substances

Employment
Engagementwith Citizens on
Sustainable Behavior

Scarcity of
Raw Materials
Transparency

Human Rights
Treatmentof Workers
Human Health

Advocating Laws
Supporting Sustainability

Importance To Stakeholders

EthicalBusiness3M 2016 Sustainability Report

Product Innovation | 23

Taking Action

Product Innovation

We are accelerating innovation to deliver meaningfulsustainability solutions.

3M has a long-standing reputation as a company
committed to innovation and continues to dedicate alarge percentage of revenue (5.8 percent) to researchand development (R&D) around the world. In addition
to having extensive resources at our headquarters in
Minnesota, 3M has rapidly expanded R&D operations
globally and now operates laboratories in 36 countries
and 8,300 researchers worldwide. To drive further
global growth of the company, a specific Invest in
Innovation (I3) program was put in place in 2012 to focus
on organic growth through prioritized investments innew-to-the-world platform development areas aimed
at new markets for 3M. The increased R&D spending
began in 2013 and is projected to stabilize at six percent
to sales by 2017. The additional Invest in Innovation
R&D funding is aimed at injecting additional fuel totake 3M’s organic growth rate to new levels and launch
new product platforms to advance our commitment toimproving our business, our planet and every life.

Our Approach
By leveraging strategic partnerships with several
stakeholders both internally and externally, 3M isenabled to integrate a rich diversity of ideas andcreativity into superior technologies, business assets
and innovative product platforms. 3M’s seven-phase
New Product Introduction (NPI) process provides therobust framework for developing products from idea
to launch. Many other tools and systems are in place toexpand, promote, manage and accelerate the innovation
process. These include but are not limited to technicalcommittees, collaborative ideation, tracking systems,
and customer interaction and insights processes
and forums.

3M 2016 Sustainability Report

3M Tech Forum: Innovation throughCollaboration
Established in 1951, the 3M Technical Forum isthe central organization within 3M for productive
technical interaction at the interpersonal
grass-roots level. Through the collective
knowledge and global relationships of over
11,000 technical employee members and over40+ technical chapters and committees, thisinterconnected global network continues tobuild our technology platform knowledge andshare ideas and expertise to spark solutions forour customers.

Technology Platforms: 3M’s
Innovation Engine
A broad base of 46 innovative technology
platforms — ranging from adhesives, abrasives
and ceramics to fiber optics, imaging, light
management, molding, nonwoven materials,
polymer melt processing and many more —come together in new and groundbreaking ways
for customized solutions. Our technologies aretransformed into consumer brands known andrespected around the world, including Scotch®,
Post-it™, Scotch-Brite™, Filtrete™, Command™,
Nexcare™ and Scotchgard™ Brands. Learn more
about 3M’s Technology Platforms.

Driving Growth throughSustainable ProductStewardshipTo further advance 3M’s vision and to make a positive
difference for an expected growing population of over
9 billion lives by 2050, 3M is focused on purposeful andresponsible solutions to contribute to a healthier world
while creating new business opportunities. Our people
are committed and inspired to use our core technology

Product Innovation | 24

platforms, our large-scale manufacturing infrastructureand expertise and our local presence in every geography
to enable new and improved solutions. Our teams
are focused on collaborating with our customers anddeveloping product experiences that integrate fulllife-cycle thinking, have net-positive impacts and create
more sustainable business practices.

Our Approach
Sustainability, along with understanding,evaluating and minimizing the environmental,
1
health, safety and regulatory (EHS&R) impacts
are at the core of 3M’s product innovation process.
Responsibility for product stewardship at 3M is sharedacross a matrix of functions positioned within
businesses, regions, and corporate staff groups.
Together, individuals across this matrix work to support
3M's core value of respect for our social and physicalenvironment.
G4

PR

Product Responsibility Liaisons (PRLs) or ProductStewards, embedded within 3M businesses andcountries of operation, act as champions of EHS&R
and sustainability. They help assure our products
meet or exceed EHS&R requirements stemming from
3M policies, governmental regulations and from ourcustomers. It is from this place that we infuse sustainability into product innovation from concept to launch.
They act as the conduit between the Business Teams andthe Corporate Staff Groups (Environmental, Toxicology,
Industrial Hygiene, and Safety) assuring appropriate risk
assessments are made and improvements incorporated
into product development.
PRLs work with the business teams to minimize
the EHS&R impacts of our products not only as
manufactured products, but throughout the life cycleof the product. Their assessment includes the impacts
through raw material selection, manufacturing, customer
use, and final disposal.

Life Cycle Management and Analysis
3M has multiple programs in place to evaluate
life cycle impacts of products. 3M’s Life Cycle
27
Management (LCM) process is in place toensure that the environmental, health and safety
opportunities and risks are addressed globally for all 3M
products and internal material transfers throughout their
G4EN3M 2016 Sustainability Reportlife cycle. Regardless of their source, all 3M products –whether 3M-developed, developed jointly with anothercompany, or acquired from a third party – are subject toreview. Any product purchased from an outside supplierfor sale as a 3M product receives the same product life
cycle consideration as an internally developed andmanufactured product. LCM evaluations are a requiredcomponent of a 3M business unit’s New ProductIntroduction process.
3M’s Life Cycle Management Policy states that LCM
evaluations are to be conducted on all new products
before commercialization, and on a prioritized basis forexisting products. The LCM evaluation helps identify
opportunities associated with environmental, health andsafety performance and to characterize and manage
EHS risks and regulatory compliance throughout aproduct's life cycle and supply chain. The Electronic
Lifecycle Management System (ELMS) is an internal 3M
proprietary global database system that standardizes
the LCM process and stores product and process
EHS&R information and assessments for all stages of a
product’s lifecycle.
In 2015 two new modules (LCM and Hardgoods) wereadded to seven existing modules in our Global Product
EHS Self-Assessment Program. Under this Program,each country subsidiary documents and rates their levelof expertise in product EHS&R processes against 3M
expectations. Based on a Health of the Organization
evaluation, a schedule has been developed andimplemented to conduct audits against the Product
EHS modules.
In addition to the LCM program which applies to all
3M products, we also conduct ISO 14040-compliant
life cycle assessment (LCA) studies for a number of 3M
products. 3M’s global strategy for detailed quantitative
LCA is first and foremost based on using sound science.
In 2014, 3M issued an internal global LCA Standard thatdefines and outlines how a product life cycle assessment
must be conducted if it is to be used for external
communication of the LCA data. This includes use inmarketing claims, environmental product declarations
and regulatory reporting. The Standard requires that all
product LCA data (including product carbon footprint
assessments) used for external communication be basedon sound statistical and scientific principles, follow aninternational LCA standard and include a quantitative
data uncertainty determination. The Standard provides
guidance on acceptable international LCA standards andProduct Innovation | 25

mandates independent internal and third party review
prior to external communication of the LCA data.
At 3M, we primarily complete cradle-to-gate LCAs as
the majority of our products have use and disposal life
cycle phases that are difficult to characterize. In addition
to product LCAs, we have completed cradle-to-gate
LCAs representing a number of internal chemicals
produced and then transferred to other divisions forfurther processing. This includes several adhesives thatare key components of numerous final products. While itis not possible to complete full LCAs for all 3M products,
evaluation of these intermediates allows us to have abetter understanding of the potential environmental
impacts of key components and processes.
In 2015, the 3M LCA teams in the US and Europe again
received process certifications from The International
EPD® System to demonstrate that appropriate
procedures are in place to produce scientifically-soundtechnically-defensible LCAs and Environmental ProductDeclarations (EPDs). Rather than conduct independent
third-party reviews for each individual product LCA
or EPD, the teams will continue to undergo an annual
recertification process. The underlying management
system, along with a selection of LCAs and EPDs
generated since the previous accreditation, will
undergo an annual third-party audit to demonstratecontinued conformance with the program rules andISO standards. Project-specific independent third-party
reviews are also conducted for selected studies. The
global certification of the LCA process for multiple
parts of our organization is thought to be the first of its
kind. This certified management system will streamline
the LCA‌/‌EPD process and reduce the time and costassociated with third-party review of individual LCA
studies. This will enable us to complete LCAs for a larger
portion of our diverse product portfolio.

3M 2016 Sustainability Report

Product Innovation | 26

Package Engineering had a focused effort in2015 to evaluate five industry packaging design
sustainability decision tools and determine which
would best support the global package design
process. The team identified and evaluated thefive industry tools by receiving demos from eachprovider. The toolset is currently in pilot phasewith the global Package Engineering team andwill enable the cross-functional teams to makedata-driven decisions.

Life Cycle Management
Research &Development
Raw Materials
Acquisition

Manufacturing& Production

Disposal
Recycling

Distribution &Transportation
Protect Use& Reuseinnovative sustainability-focused solutions that impact
all phases of a products life cycle from material selection
to manufacturing to customer use and end of life. This
will build on our long-standing Life Cycle Management
process and tools for assessment to further integratesustainability into our product development culture andprocesses, getting to the core of who we are at 3M.
We know that 3M employees care about sustainableproduct development. A global employee survey
conducted in 2013 indicated sustainable productdevelopment is the top sustainability-related priority
for employees across the company. With over 55,000
products based on various combinations of our 46
core technologies, 3M is invigorating our productdevelopers to find new and unique ways to apply ourtechnologies and creative product design with customer
and consumer insights to help make a positive differencein some of the world’s most difficult sustainability
challenges. Deepening social and environmental thinking
further into solution development will enable ourcustomers to advance and help improve lives aroundthe world.

Product Marketing andCommunications
Potential Hazard Communication andComposition Disclosure
3M is committed to compliance with allapplicable laws and regulations in the conduct
2-4
of our business activities, including the environmental, health, safety, and regulatory requirements forhazard communication. Communicating the potential
hazards of 3M materials supports 3M core values and isan integral part of keeping stakeholders informed about
3M materials. The means of communicating thepotential hazards of 3M materials includes safety data
sheets, product labels, product literature, transportation
classification documentation, and any other internal andexternal communication about the potential hazards ofa 3M material. Per 3M Policy, each business unit mustevaluate the potential hazards of 3M materials andtransmit, in the local country language(s), information
concerning the potential hazards to employees,
contractors, and customers as appropriate to meet all
G4

PR

Deepening Sustainability in
Solution Development
3M began a project in 2013 -- which was piloted in 2015
– to build capabilities that further enhance the extent
to which our new products improve lives in socio-environmental terms. This project will help to educate
cross-functional teams on how to think about improving
the sustainability attributes and applications of products
from before a new idea even gets drawn out on paper
all the way through the finalization of the manufacturing
scale-up and product launch. Through this new process,the development teams will evaluate their new productand identify opportunities for improvement to create

3M 2016 Sustainability Reportapplicable regulatory requirements and 3M standards
and guidelines, and to promote informed decisions about
the materials’ proper and safe handling, use, anddisposal. 3M Safety Data Sheets disclose all chemicalcomponents of the product down to 1% of mass based
concentration, or lower if tied to more stringent
hazard-based requirements.

Environmental Product Declarations
It’s our policy ( 3M’s Advertising and ProductRepresentation Principle ) to represent our products
truthfully, fairly and accurately in all sales, advertising,packaging and promotional efforts. Management of
every 3M business unit is responsible for ensuring
appropriate review of advertising and claims regarding
respective business products and services. All environmental product claims must be substantiated andtechnically accurate to the end user as specified by theAdvertising and Product Representation Policy. 3M’s
Environmental Marketing Claims Support Team assists
businesses in the substantiation of product claims and iscomprised of laboratory scientists, legal staff, life cycle
management professionals and others with environmental marketing and business expertise.
Extensive environmental marketing claim information
is provided in 3M’s Environmental Claims Guide
located on the internal 3M Intranet site. Specifically,
the following information is provided for each of morethan 50 potential environmental marketing claims(e.g. biodegradable, compostable) that have been
identified as relevant to 3M: Possible Claim Terminology,
Definitions, Practical Guidance, Substantiation
Necessary, Applicable Standards, Additional
External Resources, and Contact Information (forquestions internally).
3M uses the Corporate Life Cycle Assessment Standard
as an additional tool to standardize reports andcommunicate LCA results to the user/consumer. These
communications may be through Environmental ProductDeclarations (EPD) or other environmental marketingclaims. Due to the complexity and broad range of
products we offer, EPDs are not generated for all 3M
products. Currently, regional and business strategic
decisions are made based on core product volume andmarket and/or customer demand as to which products
will require a Life Cycle Assessment for claims substantiation or to support development of an EPD.

Product Innovation | 27

3M is actively involved in the American
Chemistry Council Value Chain OutreachCommittee (ACC VCOC), the American Center
for Life Cycle Assessment (ACLCA) including
the Industry Committee, and the Society for
Environmental Toxicology and Chemistry(SETAC) North American LCA Advisory Group,
as well as in standard development as a voting
member of the US Technical Advisory Group(TAG 207) for ISO 14000 series standards andthe ASTM Committee E60 on Sustainability andother global organizations.

Goals
Our 2025 goals are helping to address customer
demands regarding sustainability. They are focused on
addressing significant global sustainability challenges
involving raw materials, water, energy and climate,health and safety, as well as education and development.
The goals reflect 3M’s expanding sustainability strategy
by placing a greater focus on supporting the environmental goals of our customers and the communities inwhich we operate.

3M 2016 Sustainability Report

Product Innovation | 28

Stories
Sustainable by Design
Design is not only about the products we manufacture,
but also the way we express who we are as a company;
that’s where brand design comes in. For over a century,
3M has leveraged multiple creative disciplines of design,
including product, packaging, UX, and graphic design,
to enhance and deliver innovative solutions to the world.
Our understanding and approach to design has had an
impact all across the globe. As 3M evolves, we want tobring to life our strengthened, strategic design ethos
through core elements of our visual identity system suchas color, typography, imagery, texture and integration
across the global organization. 3M’s foundation ofscience expertise and problem-solving capability canbe awe-inspiring, but the power of such impact alsorelies on our ability to creatively communicate ourbrand identity and connect with our customers to build
meaningful relevance.
Our new visual design system brings the 3M brandidentity to life first through the foundational strengthof the power of three. 3M is a diverse, multi-facetedorganization that thrives on a culture both creativeand collaborative. Core to our visual system is theintegration of triangular shapes, conveying our multiple
dimensions with a look that is sophisticated and precise
in every detail.
To mobilize consistency of look and feel around theglobe, our new visual identity is designed to be a setof smart tools—not a rigid template system—from avibrant color palette that represents our variety andversatility to dynamic, human-focused photography thatreflects the impact of our design and innovation on life
moments. We call this 3M Science. Applied to Life.™
Learn how our internal design workbook, Compass,guides 3M designers to address sustainability issues
throughout the innovation process.

Efficient Packaging for Your Favorite
Dressing: 3M™ Tegaderm™
3M has made a long-standing commitment to efficientpaper and packaging use. We have reduced designed
packaging weight for seven straight years, for a
cumulative reduction of ~9,000 metric tons (mT). One
example of a recent success story is the redesign ofthe pouch used for our 3M™ Tegaderm™ Transparent
Film Dressing.
After being challenged
to reduce waste on
the packaging for thisproduct, we cameup with an innovative
patented process
allowing for nestingof the pouch used foreach sterile dressing
and reducing by 30%
the amount of materials needed. The new design isuser-friendly, and it even won an award from the 3M
Pollution Prevention Pays program. It reduced waste
for us at the plant and for our customers in hospitals
across the world. The seal adhesive for the pouch ismade without natural rubber latex, and the carton used
for the box packaging is made from 100% recycledcontent with at least 35% post-consumer recycledcontent. At 3M, we strive to continually improve what
we do. We are proud to put our innovation to use not
only on smart product designs but also on solutions fora greener planet.

3M 2016 Sustainability Report

Responsible Sourcing | 29

Taking Action

Responsible Sourcing

Learn how we leverage our corporate values to drive
our supply chain sustainability.

3M’s approach to sustainability
starts with our corporate values,
928, 32-33
10-11
and the same is true for our
G4
G4
G4
supplier sustainability
programs. To continuously drive
14-15
12
9-10
supply chain sustainability, we
strive to partner with our suppliers to understand ourcollective supply chains, through research, review andengagement in a transparent way. Only then, together,
can we transform our supply chains to be moresustainable and successful, and assure that our suppliers
are continuously working in alignment with our
corporate values, just as we do every day in our own
operations.
G4

G4

G4

EC EN HRLA SD SO

2015 was a pivotal year for our supplier sustainability
programs. We successfully met our 2015 Sustainability
Goal (set in 2010) to assess 80% of suppliers in 10 higher
risk countries. We then set a new goal for 2025: Drive
supply chain sustainability through targeted raw material

traceability and supplier performance assurance. As partof this transition, 3M took steps to evaluate our suppliersustainability expectations, and how we communicate
and evaluate those expectations throughout ourbusinesses and around the world. Further, since 3M
became a signatory to the United Nations Global
Compact (UNGC) in 2014, we continue to consider ways
we can extend 3M’s sustainability expectations to our“sphere of influence," such as our suppliers.
Also in 2015, we conducted extensive benchmarkingof peer and leading companies on their supplierexpectations, and we commissioned a project by agraduate student in sustainable engineering to help
us evaluate best and next practices in supply chain
sustainability. This work culminated in the developmentof our second generation supplier expectations, the3M Supplier Responsibility Code. This new Codeexpands on the environmental, health, safety, labor andtransportation expectations that we’ve had in place for10 years in our 3M Supply Chain Policies, re-states andprovides more detail on our expectations in the area of
human rights, and includes additional requirements, suchas expectations for business ethics and management
systems. Fundamentally, the Code is based on 3M

3M 2016 Sustainability Report

corporate values for sustainable and responsible
operations, and is also aligned with the UNGC’s 10
Principles, which are clearly represented in this new
supplier code. The Code also aligns with the Electronics
Industry Citizenship Coalition (EICC) Code of Conduct.
We published our Supplier Responsibility Code in April
2016, and will be communicating these expectations to
our supplier community. We are updating our supplierassessment and auditing process to match the revised
expectations, and globalizing our supplier engagement
process to identify and address varying risks bygeography and business type.
Fundamental to our supplier expectations is theunderstanding that a business, in all of its activities,
must operate in full compliance with the laws, rules
and regulations of the locations in which it operates.
Suppliers must maintain compliance systems and be able
to demonstrate a satisfactory record of compliance withlaws and regulations in the conduct of their business.
3M also encourages suppliers to go beyond legal
compliance, drawing upon internationally recognized
standards, in order to advance social and environmental
responsibility and business ethics.
All 3M suppliers are expected to comply with applicablelaws, and those expectations are embedded in 3M
contract and purchase order terms. In addition, oursupply chain expectations establish a framework that
3M considers important for:Responsible Sourcing | 30

Due Diligence for Supply Chain
Compliance and Risk Mitigation
Supply chain due diligence is an important part of
3M’s sustainability initiatives. Our efforts center on thecommodities that can have particular human rights andenvironmental risks associated with them, namely ouruse of certain minerals that have the potential to besourced from conflict areas, and our use of timber-based
products and other plant materials.
In August 2012, the U.S. Securities and Exchange
Commission (SEC) adopted a rule mandated by
the Dodd-Frank Wall Street Reform and Consumer
Protection Act to require companies, beginning in 2014,
to publicly disclose their use of conflict minerals (tin,tantalum, tungsten and gold, commonly referred toas 3TG) and whether those 3TG may originate in the
Democratic Republic of Congo or a neighboring country.
Over the past several years, regulations addressing theharvesting of timber and other plant materials have been
established in a variety of countries. Among these are
the Lacey Act in the U.S., the European Union Timber
Regulation and the Australian Illegal Logging Prohibition
Act. Although the specific compliance requirements
vary, in general, companies like 3M that use paper orother plant-based materials in products or manufacturing must demonstrate “due care” that these materials
were obtained in a legal manner.

•

Maintenance of fair and reasonable laborand human resource practices, including theprohibition of child labor, slavery and humantrafficking•

Safe and healthy workplaces•

Management of manufacturing and distribution
operations to minimize adverse environmental
impactWe have established a due diligence
management system approach for both conflictminerals and legal harvesting compliance,
consisting of these elements:•

Compliance with material content and origin laws••

Business ethics and anti-corruption

In order to comply with supply chain requirements likethose described above, and to mitigate supply chain
risks and drive sustainability and corporate responsibility
within our supply chains, 3M engages in many initiatives:•

Establish strong management systems• Identify and assess risks in the supply chain•	Design and implement a strategy to respondto identified risks• Audit supply chain due diligence•	Report on supply chain due diligence activities

For additional information about 3M suppliers, please
visit our Suppliers Page on www.3M.com/Suppliers.
•

We develop policies to address the challenges
represented by these requirements.

3M 2016 Sustainability Report•

For existing relevant suppliers, we have
implemented a prioritized supplier inquiry andverification process.

•Requirements are embedded in our Conflict
Minerals Policy and other Policies, our Supplier
Responsibility Code and expectations for new
and existing suppliers.

•

We establish compliance language in suppliercontracts, purchase orders and material specifications as appropriate.

•

We train 3M employees who have responsibility
for sourcing suppliers and managing supplier
relationships on supply chain sustainability,
including slavery and human trafficking concerns.

Responsible Sourcingof Minerals
3M deplores the violence that has occurred in the
Democratic Republic of Congo and adjoining countries
and is committed to supporting responsible sourcing of
3TG from the region. Accordingly, 3M has adopted a
Conflict Minerals Policy, as part of 3M’s Supply Chain
Policies. 3M expects its suppliers to adopt a similar
policy and due diligence management system andrequire the same of their suppliers.
3M is a member of the Conflict-Free Sourcing Initiative(CFSI), an organization established by the Electronic
Industry Citizenship Coalition and Global e-Sustainability Initiative (EICC-GeSI), which develops tools
and guidance for companies on conflict minerals.
We encourage our suppliers and other companies toparticipate in CFSI, to advance the conflict-free sourcing
of 3TG globally.
CFSI also develops standards for third party audits ofsmelters and refiners to validate their processes thatassure processed 3TG originated from sources that do
not fund conflict in the Democratic Republic of Congoor adjoining countries. 3M was an early contributor
to the CFSI Initial Audit Fund. The fund supports
responsible sourcing of 3TG by providing financial
assistance to smelters for first-year independent audits
under the Conflict Free Smelter (CFS) Assessment
Program, in order to validate conflict-free statusaccording to CFS auditing protocols.

Responsible Sourcing | 31

3M sends the CFSI Conflict Minerals Reporting
Template (CMRT) to prioritized suppliers to gather
information on the smelters and refiners in the supply
chains for the 3TG necessary to the production orfunctionality of our products. Our supplier requests
include links to 3M’s Conflict Minerals website,which includes our Conflict Minerals Policy and 3M
training on how to respond to the CMRT. This website
also directs suppliers to training resources available
through the CFSI.
Our SEC Form SD filing has more information on our
Conflict Minerals program, including our reasonablecountry of origin inquiry and due diligence. This isavailable as a link from 3M’s Working with Suppliers.

Responsible Sourcing ofForest Products
As part of our overall sustainability efforts, we have
had a long-standing commitment to responsible
forest management. Recognizing evolving laws andadministration efforts, our intent is to go above andbeyond the “due care” management system necessary
to demonstrate compliance with applicable global
legal harvesting laws, such as the U.S. Lacey Act andthe European Union Timber Regulation. Furthermore,
we want to source paper products from suppliers whoshare our values and are committed to protecting theworld’s forests.
As a diverse global company and sustainability leader,
3M is well-positioned to positively influence practices
throughout our paper supply chain. Because we do not
own forest land ourselves (we are downstream usersof paper and pulp), we developed our Pulp and Paper
Sourcing Policy to set standards of excellence for our
suppliers and their suppliers through all tiers of supply
to the forest.
The 3M Pulp and Paper Sourcing Policy, adopted in thespring of 2015, is designed to assure that the virgin woodfiber used in our paper-based products and packaging
comes from sources that protect forests and respect therights of workers and people who live in or may depend
on forests for their livelihood.

3M 2016 Sustainability Report

Responsible Sourcing | 32

Under the Policy, if pulp and paper used by 3M aremade from virgin fiber, they must be traceable tothe forest source and must be harvested legally. We
expect that our suppliers will work to assure and verify
that these virgin fibers are also harvested in a mannerthat is protective of high carbon stock forests, highconservation values, and workers’ and indigenous
peoples’ rights.
3M is committed to working together with our suppliers
to help them understand and apply the necessary
measures to assure responsible paper sourcing andsustainable forest management. Every six months,
we report on our policy implementation progress on
3M's Sustainable Forestry webpage.
We are partnering with The Forest Trust (TFT), a
non-profit organization with a strong track record in
guiding companies on the development and implementation of responsible pulp and paper sourcing andimproved forest management across global supply
chains. Together, we are engaging with our suppliers,
to train them on the forestry issues addressed in the
Policy, and support them as they trace 3M materials
back through mills to the forest sources and apply theirown responsible fiber sourcing programs. Throughthis collaboration under the framework of our Policy,
we are harnessing the power of our supply chain topromote responsible sourcing and sustainability in forest
management around the world.
On 3M.com/suppliers, we have posted training presentations on our Policy and on global legal harvestinglaws, a Policy Guidance that provides more detail on key

terms in the policy, as well as a template Due Diligence
Management System document that our suppliers(or anyone) can use as a foundation for a responsible
sourcing program. Overall, our goal is to improve thesustainability of the global pulp and paper supply chain
by engaging with our current and potential new suppliers
to promote performance improvements and theirunderstanding and ownership of sustainable forestry
practices around the world.
3M is proud to be an associate member of theWorld Business Council on Sustainable Development(WBCSD) Forest Solutions Group (FSG), a global
platform for strategic collaboration among value
chain partners to bring more of the world’s forests
under sustainable management and expand markets
for responsible forest products. As a condition ofmembership, companies involved in the FSG endorse a
set of principles and responsibilities to demonstrate theirshared commitment and leadership role in sustainability.
3M actively participates in FSG initiatives, including
this year’s update of the membership principles and aposition statement on deforestation.
In October, 3M hosted a first-ever workshop put on by
the World Resources Institute (WRI) and the WBCSD
FSG, to promote the WRI & WBCSD Sustainable
Procurement Guide for Wood and Paper-based
Products. This Guide is designed to help companies
make informed choices on forest-based products andlays out 10 key challenges that underpin sustainablesourcing and provides solutions to tackle them. WBCSD
member companies participated in this workshop, along

Initial Pulp & Paper Supplier Engagement
Initial Pulp & Paper Supplier Engagement(as % of total spend)(as % of total spend)
Production
Outsourced
Manufacturing
Packaging
0%20%

As of May 201540%

As of November 2015

60%

80%

100%

3M 2016 Sustainability Reportwith 3M supplier representatives based primarily in
the US and Europe. WRI and WBCSD representatives
led the more than 30 participants through exercises
and case studies highlighting the content of the Guide.
3M representatives also discussed our Pulp and Paper
Sourcing Policy and implementation activities.
Since we issued our new Policy in March 2015 (andeven before), we have been working to engage andunderstand the many tiers of our global forest products
supply chain. For each supplier and supplied material,
we are gathering detailed information to evaluate
legality, traceability, third-party certification status,and overall policy conformance. Although complex andtime-consuming, this supplier inquiry process provides
3M important information about our supply chain, andhelps us identify opportunities for collaboration andimprovements to advance sustainable forestry.
We have conducted numerous training and capacity
building sessions on responsible paper sourcing andsustainable forestry with 3M personnel and with
our suppliers. These trainings have been focused on
North America, where the majority of our paper-based
spend is centered, and the Asia-Pacific (APAC) region,
which includes high-risk areas for deforestation andother unsustainable forestry practices. All training is
conducted in the local language, and in most cases local
TFT personnel have participated in or led the sessions,to provide expert perspectives specific to the region.
Supplier policy training sessions have been conducted in
the US (for US and European suppliers) China (Shanghai),Taiwan and Japan, with more than 80 participants from
more than 40 supplier companies. Outside of thesemore formal training sessions, we have had dozens of
one-on-one discussions with suppliers on our policy
expectations, particularly in the area of traceability,
to come to common understanding of our policy
expectations on providing information on mills andforest sources.
We have traced over 50 percent of our annual spend
in each commodity category to at least the paper orpulp mill level, and we continue to work with suppliers
to gather forest source information. Given the large
number of individual forest sources contributing to
the global paper supply chain, this remains the mostchallenging information to obtain, but also the mostimportant to verify that 3M’s suppliers are meeting ourpolicy’s environmental and social expectations. The key

Responsible Sourcing | 33

to success on this endeavor is the continuing educationof our suppliers on the importance of knowing theirultimate forest sources and our policy expectations,in order to mitigate supply chain risks and drive
sustainable forestry.

ValuesVerification

SupplyChain
Sustainability

Transparency

Transformation

Credit: TFT

3M and TFT conducted three field assessments in China
and one in Taiwan. These supplier assessments at the
paper mill or converter level aim to verify that there
are adequate systems in place for transparency andtraceability that allow 3M to know the sources of thefiber and assess them against the policy. The social andenvironmental performance of the supplier facilities was
also evaluated. 3M plans to continue to expand our field
assessment work in a prioritized manner, as necessary
to ensure our supply chain conforms to our policy
requirements.

California Transparency inSupply Chains Disclosure
3M's Supply Chain Policies and our next generation 3M
Supplier Responsibility Code apply to the selection andretention of all 3M suppliers and establish a framework
for the maintenance of fair and reasonable labor andhuman resource practices, including the prohibitionof slavery and human trafficking. 3M’s efforts toeradicate slavery and human trafficking from its direct
supply chain for tangible goods offered for sale aredescribed in a disclosure linked from the home page of
our website, pursuant to the California Transparency in3M 2016 Sustainability Report

Supply Chains Act (California SB 657). Our California
Supply Chains Act (SB 657) disclosure describes our
systems for verifying and auditing supplier performancein prohibiting slavery and human trafficking, as well as
supplier performance in other aspects of our Supply
Chain Policies. The disclosure also describes ourcommitment to legal and ethical practices through ourmembership in the UN Global Compact and implementation of 3M’s Code of Conduct. Beginning in 2017, 3M
will be reporting our activities in response to the UK
Modern Slavery Act of 2015.

Assessing Supplier Performance
3M’s product supply chain involves suppliers
from more than 80 countries classified in over12
200 sub-categories. There are 10 global
commodity teams and numerous sub-teams that workwith all client divisions and all 3M factories to assess
criticality and develop strategies relevant to mitigating
risks and increasing value within all product supply
chains. 3M uses a criteria matrix to rank suppliers using
multiple factors and critical suppliers are defined withineach of the global commodity teams. With our broad
global supply chain, we are constantly managing
changes in supply markets both opportunistically to
extract value and defensively where necessary tosecure supply.
G4

SD

We screen 100% of our new suppliers against the labor,human rights, and environmental, health, safety (EHS)
requirements of our Supply Chain Policies, and going
forward will be screening suppliers against our Supplier
Responsibility Code. For existing suppliers, we periodically monitor their performance against our supplierexpectations to limit overall risk exposure. 3M has
implemented a risk-based supplier assessment process
to help assure that its suppliers meet expectations.
The process starts by ranking suppliers using a prioritization matrix tool that takes into account country, typeof operations, and annual 3M purchases. We may ask
suppliers to complete a self-assessment survey (SAS),and the SAS is used to understand supplier programs
and whether they meet the intent of 3M expectations.
An on-site audit may be conducted, and any deficiencies
are ultimately corrected through further communicationand follow-up audits.

Responsible Sourcing | 34

The supplier audit process covers training, social risks,labor checklists, general working conditions, emergency
response procedures, and hazardous materials
management - including transportation protocols andemployment practices. 3M staff typically conduct
on-site audits, but 3M may use third-party auditors
as needed.
The assessment program has independent oversightfrom the 3M EHS Advisory Committee. Customer
or general public concerns can be brought to 3M’s
attention via phone or website, with contact information
available online.
3M’s complex supply chain requires comprehensive risk assessment mechanisms to identify
12and mitigate potential sustainability risks
throughout the supplier base, especially critical tier 1
suppliers. The focus of our risk assessment is on
goods-producing suppliers that feed into our saleable
products. These suppliers represent 24% of almost
24,000 tier 1 Production Materials suppliers andContract Manufacturers. The potentially higher risk
suppliers in this group account for 18% of
these suppliers.
G4

SD

To date, over 4,500 self-assessments or on-site
audits of suppliers have been conducted in prioritizedcountries, including China, India, Korea, Malaysia,
Taiwan, Thailand, Brazil, Mexico, Russia and Turkey
over the past eight years. Suppliers reviewed in the last
three years represent 86% of 3M’s 2015 spend in thelisted countries.
Most suppliers met 3M’s expectations, and thoserequiring improvement were given specific corrective
action in order to retain 3M business. Suppliers withcorrective action must pass a 3M requalificationassessment after completing the necessary steps.
Most suppliers work very quickly to address any 3M
findings. Those suppliers unwilling or unable to take thenecessary corrective action in a timely manner havebeen terminated by 3M.
In order to lay a strong foundation for our 2025 goalof further driving sustainability into our supply chains,
we have updated our supplier expectations via a new
Supplier Responsibility Code, issued in April 2016,
and are updating our supplier assessment process toincorporate these revised expectations. We are also
globalizing our supplier risk analysis and assessment

3M 2016 Sustainability Report

process, and focusing our efforts on key risk areas foreach geography and commodity space, such as laborrights, human trafficking, indigenous peoples’ rights,
child labor, business ethics, workplace safety, andenvironmental impacts. In addition, we are actively
seeking out opportunities to collaborate with peer
companies, customers, suppliers and other partners tostandardize supply chain sustainability and corporate
responsibility expectations, so that we can realize muchgreater synergy and progress by working together
toward common goals.

Supplier Diversity
Equal access to business opportunities is notjust deserved, it’s a priority. Regional9­self-sufficiency is a focus area for 3M, and we
recognize its importance for business reasons as well as
in building connections with local communities.
Although we collect data around the proportion of
spending on local suppliers at our significant locationsof operation, this data is business confidential.
G4EC

3M has a long-standing commitment to sustainablebusiness practices and supporting the economic successof our communities. This includes working with bothdiverse and small-business suppliers. For 3M purposes,
a diverse supplier is any supplier who qualifies for one
or more of the following classifications: Minority-owned
business, Women-owned business, Small Business(including Small Disadvantaged, HUBZone, Woman, andVeteran/Service Disabled Veteran.)
3M proactively identifies diverse suppliers to procure
goods and services, strongly encourages the use ofdiverse suppliers across our Sourcing organization,and reaches out through our involvement with variousorganizations, including the National Minority Supplier
Development Council (NMSDC), Women’s BusinessEnterprise National Council (WBENC), Metropolitan
Economic Development Association (MEDA), Small
Business Administration (SBA), and others.
In 2015, 3M spent $1.5 billion dollars with small
businesses, representing 27% of our total US domestic
spend. We also spent $200 million dollars withdiverse suppliers, which represents 3.6% of total US
domestic spend.
3M continues to reassess elements of our approach,working across the industry to glean best practices.

Responsible Sourcing | 35

We remain committed to supporting small businessand diverse suppliers and their positive impact on theeconomic viability of communities.
3M establishes goals and regularly tracks the dollar
value of goods and services purchased from small
businesses and diverse suppliers in concert with goals
set annually with the U.S. Federal Government as partof our Subcontracting Plan for Federal Government
contracting. To achieve our goals, 3M is implementing
a 4-part strategy aimed to: 1 ) increase our spend withcurrent diverse suppliers by reviewing our existing
diverse Suppliers by diversity category; 2 ) identify
additional diverse suppliers in our existing supply
base by reviewing our top non-diverse suppliers
by commodity team; 3 ) find “new-to-3M” diverse
suppliers; and 4) further disrupt the status quo byworking to move some of our Tier Two dollars to Tier
One and focusing on diverse suppliers in our RFP
activity. Our progress is routinely communicated toleadership across the organization.
More on our Supply Diversity program can be found on
our Supplier Diversity website.
3M values our supplier relationships and aims
to recognize outstanding performance thatenables 3M to be a relevant player in the market
place and share in the Company’s vision. Our
Most Valued Partner (MVP) award program
seeks to recognize those elite suppliers that
help 3M succeed in accomplishing our Visionof 3M Technology Advancing Every Company,
3M Products Enhancing Every Home and 3M
Innovation Improving Every Life. Each year, 3M
supplier professionals in our Global Sourcing
organization will nominate exemplary suppliers
to be recognized for world class performancein 6 different categories for products and/or services: Production Materials, Outsource
Manufacturing, Indirect Sourcing (Services),
Sustainability, Diversity, and Supplier Ideation.
Upon review against award criteria and othernominees, 3M will name up to one suppliereach year as our Most Valued Partner in eachcategory, based on results from the previous
year’s performance. 3M MVPs are invited toan award ceremony, and are able to share therecognition on their company’s website.

3M 2016 Sustainability Report

Economic Sustainability | 36

Taking Action

Economic Sustainability

Learn how our technology, products and innovation
come together to lead to our continued financial
sustainability.

Concurrent with our vision, 3M has six strategies thatwill propel the company forward and achieve ourfinancial goals:•

Expand relevance to our customers and ourpresence in the marketplace

Our Vision•

3M continues to be inspired and motivated by our
corporate vision:

Gain profitable market share and acceleratemarket penetration everywhere•

Invest in innovation: Invigorate existing market
opportunities and focus on emerging megatrends•

Intensify capabilities and achieve regional
self-sufficiency•

Build high performing and diverse global talent•

Drive consistent superior levels of operational
excellence

3M Technology advancing every company
3M Products enhancing every home
3M Innovation improving every life
The vision captures the essence of 3M: technology,
products and innovation. It describes what we do for ourcustomers every day: advance, enhance and improve. It
also establishes a stretch goal for all employees at 3M
as we have the capability to reach every company, every
home and every life all around the world.

Three key levers are driving 3M’s success, andpositioning us to win in both the short and long term.
In 2015, we have made significant process on each ofthese levers.
The first is portfolio management. In 2012, we began
taking action to prioritize, strengthen and focus our3M 2016 Sustainability Report

Economic Sustainability | 37

portfolio of business. We have since realigned from
6 sectors to 5 business groups and from 40 businesses
to 26. This year, for example, we combined our dental
and orthodontic business within our Health Carebusiness group. Now, through a single and seamless
partnership, we can offer customers an array of oral
care innovations. Combining and realigning businesses
is delivering significant benefits, including greater
customer relevance, scale, productivity and speed. It isalso making our company leaner and better positioned
to allocate resource to our best opportunities as it
relates to both organic growth and acquisitions. In
2015, we also strengthened our portfolio throughacquisitions. In particular, our Capital Safety acquisition
bolsters our already-strong position in the fast-growing
personal safety business, and the acquisition of
Polypore’s Separations Media business strengthens
our filtration technology platform. At the same time,
we divested three businesses that no longer alignedwith our strategic objectives, including the librarysystems business.
Our second lever is investing in Innovation. It fosters
a constant stream of unique and cutting-edge
products, which drives organic growth. 3M’s primary
growth strategy is organic, which is why research anddevelopment is the heartbeat of our company. In 2015,
we invested $1.8 billion in R&D, 5.8 percent of sales,
while expanding our scientific capabilities globally. We
opened six customer technical centers around the world,and opened a new state-of-the-art research laboratory
in the United States in March 2016.
We are moving to a more efficient business modelthrough our third lever which is Business Transformation.
3M is committed to Business Transformation, which
will make us more agile, more efficient, and mostimportantly, more responsive to customers. The
backbone of this effort is implementation of a global
Enterprise Resource Planning system. Business transformation is an important undertaking, with significant
long-term benefits.

2015 Financial Summary
Key Economic Highlights for 2015:•

Earnings per share increased 1.2 percent to$7.58 per share•

Operating income margins increased 0.5
percentage points year on year to 22.9
percent•

Total worldwide net sales for the year were$30.3 billion, a decrease of 4.9 percent•

Organic local-currency sales growthincreased 1.3 percent worldwide: 2.1 percent
in the United States, 1.5 percent in Latin
America/Canada, 0.9 percent in Asia Pacificand 0.8 percent in Europe/Middle East/Africa•

Currency impacts reduced worldwide sales
by 6.8 percent and acquisitions, net ofdivestitures, added 0.6 percent to sales•

Return on invested capital of 22.5% and free
cash flow conversion of 103%•$7.8 billion was returned to shareholders
through dividends paid and share repurchases

During the first quarter of 2016, we announced our new
five-year financial objectives:•

8 to 11 percent growth in earning per share•

2 to 5 percent organic local currency sales
growth•20 percent return on invested capital•

100 percent free cash flow conversion

We are building, preparing and positioning 3M for
efficient growth today and into the future.
3M has company-sponsored retirement plans covering
all U.S. employees and many employees outside theU.S. The primary U.S. defined-benefit pension plan wasclosed to new participants effective January 1, 2009.
3M expects to contribute approximately $100 million to$200 million of cash to its global defined benefit pension
and postretirement plans in 2016. The Company does
not have a required minimum cash pension contribution
obligation for its U.S. plans in 2016. The increase in U.S.

3M 2016 Sustainability Report

Economic Sustainability | 38

Selected Financial Results
Dollars in Millions, Except Per Share Amounts

Operating Results

2011

2012

2013

2014

2015

Net Sales$29,611$29,904$30,871$31,821$30,274

Operating Income$6,178$6,483$6,666$7,135$6,946Net Income Attributes to 3M$4,283$4,444$4,659$4,956$4,833

Per Share- Basic

$5.72

$6.05

$6.40

$6.83

$7.63

Per Share - Diluted

$5.63

$5.96

$6.32

$6.72

$7.49

Operating Results

2011

2012

2013

2014

2015

Capital Expenditures$1,379

$1,484$1,665$1,493$1,461

Research Development andRelated Expenses$1,570$1,634$1,715$1,770$1,763

Employee Compensation
and Benefits$8,059$8,347$8,732$8,836$8,791

Payments to Providers ofCapital$1,774$1,801$1,899$2,394$2,695

Provision for Income Taxes$1,674$1,840$1,841$2,028$1,982

discount rates and other factors resulted in a decreasedin the projected benefit obligation (PBO), however
the plan’s funded status decreased slightly in 2015 as
the decrease in the PBO was at a lower rate than thedecrease in fair value of plan assets 2015.
The Company also sponsors employee savings plans
under Section 401(k) of the Internal Revenue Code.
These plans are offered to all regular U.S. employees.
For eligible employees hired prior to January 1, 2009,
employee 401(k) contributions of up to 6% of eligible
compensation were matched in cash at rates of 60%
or 75%, depending on the plan in which the employee
participates. Employees hired on or after January 1,
2009, received a cash match of 100% for employee
401(k) contributions of up to 6% of eligible compensation and also received an employer retirement income

account cash contribution of 3% of the participant’s
total eligible compensation. Beginning on January 1,
2016, for U.S. employees, the Company reduced its
match on employee 401(k) contributions. For eligible
employees hired prior to January 1, 2009, employee
401(k) contributions of up to 5% of eligible compensation will be matched in cash at rates of 45% or 60%,
depending on the plan in which the employee participates. Employees hired on or after January 1, 2009,
will receive a cash match of 100% for employee 401(k)contributions of up to 5% of eligible compensation andwill also continue to receive an employer retirement
income account cash contribution of 3% of the participant’s total eligible compensation. All contributions areinvested in a number of investment funds pursuant to theemployees’ elections.

3M 2016 Sustainability Report

Employee Engagement and Recognition | 39

Taking Action

Employee Engagement and Recognition

Learn about the ways we foster employee engagement

Overview
Employee engagement is a priority for 3M. We knowthat employee engagement is good for the Company
and employees. Engaged employees are more satisfied
with their work, tend to stay longer, and are moreproductive and committed. Employees are encouraged
to pursue their ideas with a passion and collaborate withothers to make their ideas reality. To facilitate employee
engagement, we foster and reinforce behaviors that
support engagement using multiple avenues including
networking and collaboration, diversity and inclusion,and measurement and feedback on engagement.

Approach
Networks and Collaboration
3M has numerous pathways to support organizational
communications, learning and knowledge management.

There are a variety of corporate and job functional
systems to methodically help information andknowledge emerge and flow to the right people at theright time to add value. For example:•

Formal Learning Networks: The Learning Solution
is 3M’s corporate learning management system
and is a one-stop electronic learning center
that helps employees enroll in, deliver, track
and report on learning activities. The Learning
Solution serves the learning needs of 3M
business units, plants and organizations globally.

•

Intranet Knowledge Platforms Databases: 3M’s
intranet site structure is set up so that each
employee has a Work Center as one of thequick-link tabs following login. Each Work Center
is a collection of tools, systems and processes
that are used routinely in daily work practices
to successfully complete projects and work
assignments in an employee’s functional workarea. Company news for employees is available
on a global news site called Spark 3M News.
It enables employees to share news articles,
videos and links with others both internally andexternally via email and social media.

3M 2016 Sustainability Report•

Best Practice Descriptions/Processes: As adiverse technical company, 3M shares bestpractices several ways. Three of the mostwidely used internal organizations are the 3M
Technical Forum, 3M Marketing Forum, and the3M Engineering Technology Organization. These
three organizations provide an extensive networkof expertise through specialized chapters focusedon 3M’s core technologies and other emerging
markets. Employees in R&D, manufacturing
and other parts of the supply chain are able tocollaborate and drive innovation globally acrossthe organization.

•

Company Education Facility: In addition to avariety of general courses, webinars, etc., 3M
offers specialized extended courses to increaseskills such as the 3M Leadership Development
Institute, the 3M Marketing University,
compliance courses, the Supply Chain Learning
Academy, Harvard ManageMentor, and theGeneral Managers’ and Managing Directors’
program.

•

Idea Sharing: Idea management is driven
differently across the Company depending onorganizational needs and what works best for thearea of work. Some platform examples include
Yammer, Wiki Enterprise, and various 3M internaland external social media channels. Systems
are implemented and available globally to share
best practices and ideas. We also encourage our
employees to spend 15% of their working timesharing and working on their own projects.

Measurement, Feedback and Action on
Employee Engagement
Since 2006, key survey content and follow-up actions
have focused on employee engagement. We measureengagement and engagement drivers, and provide theseresults to leaders and their organizations for follow-up.
As 3M corporate policy, a standard opinion survey isadministered to all employees at locations worldwide
once every three years. 3M uses survey results toaddress employee concerns and identify opportunities
for improvement.
Summaries of survey results and actions taken are
circulated up the management chain to ensure

Employee Engagement and Recognition | 40

visibility and accountability. 3M also conducts a more­strategically-focused survey that includes engagement
measures. This survey, the Vision and Strategies
Alignment Survey, was last conducted in October 2013.
3M also requires its leaders to actively foster
engagement as part of their day-to-day coaching
and interactions with others. This expectation isembedded in our leadership behaviors, which apply to
all 3M leaders and links to their annual performanceassessment. 3M supports leaders in these efforts via
formal training, videos and on-demand tools.
Results from the Standard Opinion Survey and the Vision
and Strategies Alignment Survey indicate 3M’s supportof employee engagement is strong and continuing to
get stronger. Results have improved with each administration, up to 83 percent favorable in the most recent
survey, which is well above the threshold for strength(70 percent favorable).

Employee Engagement
Results from 2013 Vision and Strategies Alignment Survey

90%

Reported they persevere when facedwith difficulties, take on new roles andresponsibilities as the need arises, and are excited that
their work contributes to company success.

89%

Respondents say they feel likethey really belong in the company.

83%

Highest worldwide Engagement
category score since the firstsurvey was conducted.

76%

Reported the people in mywork group actively pursue
self-development opportunities
to meet company needs.

72%

Reported it is very easy
to maintain my focus.

3M 2016 Sustainability Report

Employee Engagement and Recognition | 41

Employee Rewards and Recognition
Hard work and extra effort are rewarded and recognizedat 3M through an array of award programs. 3M sponsors
many corporate award programs to honor individuals
and teams that make significant contributions to thecompany.
In addition, many divisions also have their own specificways of recognizing and rewarding people. Across 3M,
management can choose from a variety of monetaryand nonmonetary awards to show appreciation for
exceptional contributions. Examples of corporate awards
include:•Awards for specific professionals, such as the
Global Marketing Excellence Award and theCircle of Technical Excellence and Innovation
Award

•

Awards for cross-functional teams, such as theGolden Step Award•

Awards focused on employees who improvesafety or pollution prevention•

Two prestigious lifetime achievement awards: theEngineering Achievement Award and the Carlton
Society recognition, which honor employees fortheir scientific achievements

Employee Engagement for Sustainability
3M also has a robust approach to engaging employees
in “sustainable thinking” at work and at home. A few key
elements include:••

Global communications - every employee witha 3M email address routinely receives emailcommunications from executive leadership
regarding global challenges, environmental daysof recognition (Earth Day, World Water Day,
International Women’s Day, etc.) in an effort tofurther educate the global workforce on bothchallenges and ideas for improving how we live
and work.
Sustainability Week - In 2015, 3M hosted its
third annual “Sustainability Week” celebration –a globally celebrated series of activities including
Sustainability brainstorm sessions, a productinnovation competition featuring executive
judges and global employee voting.

Story
Encouraging life-long sustainability, one
week at a time.
3M uses Sustainability Week, a week-long series of
events, to engage our employees in sustainable thinking.
True sustainability must be lived daily. But sometimes we
all need little reminders to jump start our thoughts andactions. That’s why we created Sustainability Week, aseries of daily events, discussions and communications
focused entirely on engaging 3Mers in sustainablethinking.
Our goal is to get the thousands of 3M employees
across the globe embraced in the sustainability mindset
and participating in activities that make a real impact.
From product development competitions to independent
research projects, giant brainstorming sessions to
discussions at home, this week sharpens our focus on
using sustainability to improve lives.
During the 2015 Sustainability Week, we addressed
global sustainability challenges we all face every day athome and at work. 3Mers were asked to think creatively,
collaborate, and innovate with the shared goal of making
life better. We built tables for those in need, using
construction waste. And we led a Shark Tank-inspired
Power Pitch, which allowed teams of employees tosuggest business ideas with a sustainability focus tocompete for research and development funding withwinners chosen through global text voting by their peers.
Additional events included a keynote speaker fromclothing company Patagonia, events on meditationand mindfulness in effective leadership, and a Bike toWork day.

3M 2016 Sustainability Report

Engaging Our Stakeholders | 42

Taking Action

Engaging Our Stakeholders

See how our stakeholder-driven approach tosustainability materiality serves as a foundation forour sustainability strategy and reporting.

Overview
Stakeholder engagement can help guidecompanies on doing business the right way. It
15-16
can also have a direct impact on a company’s
financial success (sales, share price and investments),
on its operations, and on its reputation. 3M has createda robust, stakeholder-driven approach to sustainability
materiality that serves as a foundation for our sustainability strategy and reporting. Through understanding
critical sustainability issues from both internal andexternal perspectives, 3M can strengthen its social
license to operate and develop corporate strategy,
goals, targets, programs, initiatives and a stakeholder
engagement strategy to advance sustainability globally.

As a science-based company, our stakeholders include
customers and consumers, investors, government
agencies, industry organizations, subject-matter experts
and academia, non-government organizations, othercorporations and more.

Major Stakeholders and Key Actions

G4

SD

Employees•

Respecting human rights and diversity•

Supporting, optimizing and promoting
development and growth•

Ensuring a safe and healthy work environment•

Ensuring equal opportunity•

Providing competitive compensation and benefits•

Attracting and retaining the highest talent by
being a company for which employees are proud
to work3M 2016 Sustainability Report

Investors

Engaging Our Stakeholders | 43

Local Communities•

Delivering profitable returns on investment••

Disclosing timely, concise and relevant
information (related to Economic, Environmental
and Social Issues)

Supporting and engaging in citizenship activities
across our value chain•

Providing economic and social value tocommunities, while minimizing environmental
impact•Supporting safe and healthy communities•

Responding to inquiries•

Upholding corporate values

Suppliers, Contractors and Industry Associates•

Partnering with suppliers and contractors thatmeet or exceed expectations•

Supporting collective efforts to deliver businessresults•

Collaborating to identify, resource and amplify
sustainability initiatives•

Respecting human rights for workers across ourvalue chain

Academia and Scientific Organizations•

Engaging on technical scientific research todevelop innovative solutions for society

Nonprofit Organizations and NGOs•

Partnering to understand societal concerns•

Providing support to advance and solve
global issues

Customers•

Providing diverse innovative product solutions
that help our customers deliver on their promises•

Offering a diversified portfolio of products
increasingly demonstrating sustainability
attributes•

Providing sustainable products to address andhelp solve global environmental challenges

Government/Regulators
•
•

Media
•

Ensuring 3M is represented accurately withcurrent information

Memberships and Partnerships
It is through collaboration and partnerships that 3M
can accelerate sustainability in our company and in
the world. We value our partnerships with numerous
stakeholders as a way to not only address our sustainability issues, but to help our partners address theirsustainability challenges. 3M has joined numerousorganizations globally to advance sustainability throughcollaboration with the organization and its members.
Memberships have provided a forum for working on key
sustainability issues that are relevant to both 3M and our
stakeholders.
Memberships and partnerships help provide us
with diverse viewpoints on sustainability, a better
understanding of the positions of our stakeholders, anda mechanism to learn from the successes and failures ofour peers.
3M partners with many organizations. Key engagements
include the following listed below.
Employees•

Committee to Encourage Corporate Philanthropy•

The League of American Bicyclists•

The Science Museum of Minnesota

Investors•

Dow Jones Sustainability Index

Complying with laws, regulations and policies•

CDP

Supporting and engaging on development andmodification of changes

•

MSCI

•

National Investor Relations Institute3M 2016 Sustainability Report

Government/Regulators

Engaging Our Stakeholders | 44

Industry Trade Associations•

The Commission for Environmental Cooperation•

Air & Waste Management Association•

United Nations & U.N. Global Compact•

Alliance to Save Energy•

U.S. Department of Energy (DOE)•

American Chamber of Commerce (AmCham)•

U.S. EPA Green Power Partnership•

American Chemistry Council (ACC)•

U.S. EPA Energy Star Program•

American Industrial Hygiene Association•

International Labour Organization•

CAPS Research•

The Conference Board•

The Conflict Free Sourcing Initiative (CFSI)

Customers•

The Closed Loop Fund•

European Chemistry Industry Council (CEFIC)•

Corporate Eco Forum•

Green Chemistry & Commerce Council (GC3)•Retail Industry Leaders Association•

London Benchmarking Group•

Sustainable Brands•

Minnesota Chamber of Commerce•

World Business Council for Sustainable
Development•

National Association of EHS Managers•

National Association of Manufacturers (NAM)•

National Climate Coalition•

Pressure Sensitive Tape Council•

Water Quality Association

Academia/Scientific Organizations•

Harvard Medical School, The Center for Healthand the Global Environment•

Iowa State University. Center for Bioplastics andBiocomposites•

University of Minnesota, Center for Sustainable
Polymers•

Environmental Initiative•

Intergovernmental Panel on Climate Change•

Society of Environmental Toxicology andChemistry•

Massachusetts Institute of Technology

Local Communities

Labor and Human Rights•

US Business Leadership Network

Media
•

Sustainable Life Media

Nonprofit Organizations/NGOs•

Alliance to Save Energy•

Forum for the Future•

Friends of EU Emissions Trading Scheme (ETS)•

TFT (The Forest Trust)•

The Nature Conservancy•

United Way•

Net Impact•

Habitat for Humanity•

Practice Greenhealth•

American Red Cross•

World Resources Institute (WRI)•

Feed my Starving Children•

WorldSkills•

Numerous others local to our manufacturing
operations around the world•

World Wildlife Fund (WWF)•Much more information can be found in the
Collaborating with Our Communities section ofthis report

3M’s stakeholder engagement strategy continues to
evolve. We continually look to our stakeholders to help
us increase understanding, broaden our awareness,seek technical input and expertise and evaluate possible
collaborations and strategic partnerships. We relyon their counsel and expertise to help guide us. We
believe stakeholder engagement should be based on

3M 2016 Sustainability Report

candid and authentic dialog, grounded in the company’svalues and should contribute to the evolution of ourstrategic priorities.
Levels of engagement with stakeholders vary greatly
by geography, type and function. For example, 3M
employees globally are engaged frequently throughsustainability communications and events with diverse
topics based on our material aspects, while we may
engage annually for an industry association meeting. We
may also have engagements around a specific issue.
In October 2015, 3M hosted the first annual 3M
Sustainability in Health Care Summit at the 3M
Innovation Center in St. Paul, Minnesota. The goalof the conference was to advance sustainability inhealth care by sharing challenges and best practices.
Executives from over 40 private and military hospitals
and non-profit organizations participated, some experts
in applying sustainability in their organizations, and somejust starting out. We are planning to make this Summit anannual event, to continue to advance sustainability in thehealth care sector.
In another example, the Commission for Environmental
Cooperation (CEC), in collaboration with Natural
Resources Canada (NRCan), Mexico’s Comisión
Nacional para el Uso Eficiente de la Energía (National
Commission for the Efficient Use of Energy) (CONUEE)
and the US Department of Energy (DOE), is partneringwith private sector facilities in Canada, Mexico, and theUnited States to promote the adoption in North Americaof the ISO 50001 international energy management
system (EnMS) standard. The CEC’s North American
Energy Management Pilot Program provides partnercompanies with increased capacity to implement andbecome certified to ISO 50001 and, possibly, theSuperior Energy Performance™ (SEP) program managed
by the DOE. Three 3M facilities are participating in thisproject: San Luis Potosi, Cottage Grove, and Brockville.

Engaging Our Stakeholders | 45

We also receive stakeholder input via shareholder
inquiries and proposals, as well as general outreach.
To help us think more broadly about our humanitarian
impact, in both 2014 and 2015, we used the Net Impact
Conference to start and encourage a dialog around theidea of social sustainability and 3M’s ability to “improve
every life” in partnership with others. In early 2016,
we continued to expand this conversation by creating
an art exhibit at South by Southwest that posed thequestion of what everyone can do to address the global
challenges ahead as we look to a growing population.
We continue to push this conversation and gain insightsfrom stakeholders using a robust Sustainability-focusedsocial media and online strategy. We look forward tocontinuing to learn more about this topic from a varietyof thought leaders in the years ahead.
Businesses today are operating in a new landscapewhere broad sets of stakeholders expect an increased
level of transparency, access and engagement. To
further facilitate this process 3M hired a full-time professional to manage global stakeholder engagement. It ispart of our effort to strengthen 3M by better communicating with our customers, consumers, investors andother stakeholders around the world. A dedicated,
full-time focus will allow us to have a more strategic
and proactive approach to engagement on a variety of
topics, which will keep us well-connected and ahead ofissues that could affect our business. It is through thisposition that we will facilitate consultation between
stakeholders and the board on economic, environmental
and social topics.
We engaged with many external stakeholders in setting
our new 3M 2025 Sustainability Goals. These goals
are aligned with the key global challenges, as well as
the United Nations 2030 Sustainable Development
Goals. As such, they present unique opportunities forpartnerships and collaboration, which 3M is actively
seeking out.

3M 2016 Sustainability Report

Collaborating With Our Communities | 46

Taking Action

Collaborating With Our Communities

Our partnerships with diverse organizations aroundthe world lead to better sustainability solutions.

3M improves lives through innovative social
investments in Education, Community, and1
Environment. Our goal is to create a betterworld for everyone, and our approach includes annual
social investments in our global communities. Throughthese investments, we strive to increase access andstudent achievement in STEM (science, technology,
engineering and math), improve standards of living incommunities where we operate, and build environmentally sustainable communities.
G4

SO

Improving Lives through3Mgives
In 2015, 3M aligned activities to harness the power of its
business expertise and employee resources to maximize
our impact on 3M communities. It was a landmark year
for 3Mgives with investments and programs that aligned
community outcomes to business strategies.

3M began the year with our chairman of the board,president and CEO, Inge Thulin, leading the Greater
Twin Cities United Way Centennial Campaign. Under
his leadership, 3Mers across the country invested$6.1 million and the company matched those dollars
resulting in 3M giving a total of $15 million to more than
2,500 agencies and projects – record results for ourcommunity. The impact was tremendous – more than
1 million lives in 150 communities were improved.
3M's community impact is global. The company
expanded its Global Volunteer Day to 88 international
locations in 2015. More than 16,000 3M volunteers
helped to improve the lives of young people from Beijing
to Brussels to Buenos Aires through pre-school to highschool projects.
3M furthered its reach into diverse communities
particularly through the leadership and community
engagement work of 3M Employee Resource Networks,
including the Women’s Leadership Forum. For example,
3M's Latino Resource Network and the African
American Network mentored students from a St. Paulhigh school and hosted a career awareness event at 3M
Headquarters. The Military Support Network distributed

3M 2016 Sustainability Report

3M products to veterans who are homeless and 3M's
Native American Network packed school supplies for
the American Indian School in St. Paul.
We continue to enhance employee engagement byleveraging the skills and passion of 3Mers aroundthe globe. In 2015, 3M invested in the 3M Catalyst
Leadership Way program to send 3M senior executives
to engage their professional skills to support community
sustainability initiatives in Mumbai and Chennai, India.
The company is also encouraging greater giving
around the globe to align community investmentswith 3M’s global operations. In 2015, 3M developed
the International Giving Fund in partnership with
United Way Worldwide to facilitate investments incommunity organizations outside of the United States.
These investments include funding STEM education
projects with 3M Mexico, 3M Argentina, and 3M Brazil;
environmental sustainability projects with 3M Canada;and supporting projects that help meet basic needs forchildren of migrant workers near 3M China.
In addition to financial resources, 3M leveraged its
diverse product portfolio to support our communities –in 2015, 3M invested more than $36 million in productand services (Fair Market Value) to strategic community
partners. For example, as founding partner with a $5
million commitment, 3M gave more than $1.6 million
worth of products at Fair Market Value to help construct
and enhance the visitor experience at the National
Museum of African American History and Culture on
the National Mall in Washington, D.C. The museum isscheduled to open in the fall of 2016.
3M has identified game-changing social programsby building upon new models of investments with
innovative and effective organizations. For example,
the company invested in the Closed Loop Fund, acollaborative social impact fund that provides municipalities with access to capital to build comprehensive
recycling programs. 3M expanded its partnershipwith DonorsChoose.org, an organization that helps
to fund teacher projects in under-resourced schools.
Through a partnership with DoSomething.org, 3M
engaged thousands of students in STEM in a fun and­contemporary way.

Collaborating With Our Communities | 47

Approach
3Mgives, the social investment arm of 3M, is governedby the 3M Foundation Board of Directors and Corporate
Contributions Committee comprised of senior level
executives in the company. The 3M Foundation Board of
Directors guides the social investment strategy including
giving area, budget allocation and high-level strategy
advice for execution by 3Mgives staff.
3M leaders from each region develop and administer
programs consistent with the overall 3Mgives strategy
and local culture and social needs. For example, in the
United States, 18 Community Relations Councils develop
regional strategies and direct local social investments inpartnership with the 3Mgives team. In addition, 3Mgives
regularly convenes a Global Advisory Council comprisedof senior leaders from countries around the globe toinform and develop our global giving strategy.
Since the inception of the 3M Foundation in 1953, 3M
has invested $1.45 billion in cash and in-kind donations
in communities around the world. These global
investments were bolstered by employees and retirees
volunteering millions of hours.

Investing Our Resources.
Investing Ourselves.
K-12 Education
3M’s education goal is to increase student achievement
for all students in STEM (science, technology,
engineering and math). To that end, 3M has supported
innovative and impactful STEM and business educational
initiatives for many years. As a company that has
thrived on applying science to life, 3M understands theimportance of inspiring the next generation of scientists,
innovators and inventors. 3M invests in educational
initiatives that help young people understand how
science impacts their daily lives and encourages andsupports interest in science, reflecting the company's
commitment to applying science to life. Our goals are to:•Promote equity by driving quality education to allcommunities

3M 2016 Sustainability Report•

Build a diverse pipeline of talent by increasing
student achievement in STEM and businesscurriculum•

Support post-secondary programs that attract,
retain and graduate high-performing students

3M Science Encouragement Programs
3M’s STEM support is not new; the company has
worked with Saint Paul Public Schools (SPPS) for morethan 40 years. Through that partnership, 3M developed
several Science Encouragement Programs. One suchprogram is 3M STEP (Science Training Education
Program). STEP provides juniors and seniors fromSPPS the opportunity to participate in the process ofscientific discovery at 3M. Through mentoring andclassroom instruction by 3M scientists, and paid summer
employment in a 3M lab, STEP students increase job
skills, gain insight into scientific careers and enhancetheir personal development. As of 2015, more than 1500
students have participated in the program. Many havegone on to pursue careers in science and several are
working at 3M. In fact, a former STEP student is now adivision scientist!
3M strives to help SPPS create positive outcomes andopportunities for students with more than $1 million
invested annually and hundreds of eMentors. Ourinvestments have contributed to great results for all
students in SPPS. Student achievement in STEM has
increased for the district and more students are pursuingdegrees in STEM-related fields while attending top
tier schools. 3M believes that all students, regardlessof race, gender or any other factor, should have fair
opportunities to succeed. In 2015 the disparity between
graduation rates for Black and White students decreased
three percentage points from 18 percentage points to
15 percentage points. The district also saw graduation
rates higher than the state average for American Indian,Hispanic, Black, and English Learners in 2015.
DoSomething.org
3M partnered with DoSomething.org to develop a fun
and contemporary way to engage young people (13 –18 years old), especially young women in STEM. 3M
scientists worked with the DoSomething team to launch
Science Sleuth 2.0, an adventure where students use
STEM principles to solve a mystery. At the end of theadventure, students had the opportunity to learn more

Collaborating With Our Communities | 48

about 3M scientists and to donate $10 provided by 3M
to a STEM project in a classroom in need. DoSomething.
org enabled us to expose a much broader audience to
STEM principles than ever before. Our goal was to movestudents from the pre-contemplation level (science is not
my thing) to contemplation (science can be interesting
and fun). This program also provided an opportunity for
3M scientists to develop a realistic STEM experienceand share their personal STEM journey.
DonorsChoose.org
3M has long recognized the need to support teachers’
efforts to make STEM fun and interesting for theirstudents. To do this often requires additional equipment,
books, and materials. To help teachers purchaseadditional STEM teaching aids, 3M started the 3M
Ingenuity Grants program in 2003. This programprovides grants of up to $15,000 to support STEM
classroom projects in 3M communities. 3M has since
partnered with DonorsChoose.org to expand its reach
into classrooms around the country. In 2015, 3M
invested more than $500,000 to support more than 600
projects in 27 states, of which more than 90% were inmoderate or high poverty areas.
3M Visiting Wizards
The Visiting Wizards is another 3M Science
Encouragement Program developed by 3Mers.
This program aims to spark an interest in sciencein the youngest of learners. 3M Visiting Wizards
visit classrooms to share the magic of science withstudents through science demonstrations and hands-on
experiments. The demos and experiments are on topics
such as catapults, energy, and cryogenics. Today,
more than 800,000 students have seen how scienceis applied to life. These demos are online, and they
are accessible to teachers and community leaders
everywhere.
FIRST Robotics Teams
3M is a longtime supporter of FIRST Robotics teamsin the U.S. 3M supports nearly 50 teams around theworld including teams in Poland and Brazil. In addition
to sponsoring teams, 3M provides more than $500,000
in products to the teams. We also have hundreds of
employees who volunteer as coaches.

3M 2016 Sustainability Report

Higher Education
3M Frontline Sales Initiative
Our Frontline Sales Initiative is an innovative, educational
partnership with universities, including four HistoricallyBlack Colleges and Universities (HBCUs) across theUnited States. The program was designed to increase
the amount of sales education content at universities
and elevate sales as a discipline and a profession. By
collaborating with universities and faculty, as well asaligning 3M sales leaders and resources, 3M supports
the development of professional sales programs. Today,
3M has hired more than 346 students from this program.
University of Minnesota
The University of Minnesota is a key strategic partnerwith 3M. We have donated more than $40 million
to support scholarships, fellowships, programs toencourage diversity in the sciences, and more. The
U of M established the STEM Education Center in 2010
to train elementary and secondary school educators
to effectively incorporate evidence-based disciplines
into their teaching, and to grow students’ interest andcompetencies in STEM.
The 3M STEM Education Fellows Program funds
graduate students to work with targeted schools to
integrate STEM into their school curricula. 3M’s support
has allowed the U of M to partner with 200 Twin Cities
metro area teachers to increase science and mathlearning for 15,000 students in the fourth througheighth grades. In addition to supporting science andengineering, 3M also supports business education.
The company provides scholarships for students at the
University of Minnesota Carlson School of Management.
3M Scholarships
A significant part of building the STEM pipeline issupporting students as they pursue higher education
opportunities. 3M provides scholarships to students at
the following universities:•

Georgia Tech•

Northwestern University•

Penn State•

University of Urbana•

University of Minnesota•

University of Wisconsin-Madison

Collaborating With Our Communities | 49

The company also partners with organizations, such as
United Negro College Fund (UNCF), to increase higher
education opportunities for underrepresented students.
In 2015, 3M helped the Twin Cities UNCF raise morethan $500,000 for scholarships, earning the UNCF
Chairman's Award. In addition, the company supported
the Asian and Pacific Islander American Scholarship
Fund at the University of Minnesota. 3M also expanded
its College/University matching program to include
the American Indian College Fund and the Hispanic
Scholarship Fund.
3M also recognizes the need to support and encourage
students to consider careers in skilled trades. To support
the development of a skilled technical workforce, 3M
established an initiative that fosters industry-driven
partnerships with technical colleges. These partnerships
help local community schools to better align curriculumwith job skills required for today’s technical workforce.
The partnership increases awareness of career
opportunities by providing internships and mentors inmanufacturing. 3M has invested more than $300,000 insupport of this initiative.

Volunteerism
3M formalized volunteerism in 1949 as an integral
part of 3M’s support to our communities. As aresult of increased awareness of volunteer activities
and implementation of new initiatives, employee
engagement increased significantly at 3M. In 2015, thenumber of volunteers increased 51 percent and hours
grew 11 percent.
3Mgives helps to build sustainable communities throughstrategic social investments and thoughtful engagementof 3Mers worldwide. 3M volunteers represent our mostimpactful contribution to communities. Volunteerism is
an important part of the 3M’s culture – it reflects thecorporate vision and supports 3M Leadership Behaviors.
3Mgives launched an app in 2015 to recruit volunteers.
Volunteers are able to sign up for opportunities, upload
activity photos and comment on various opportunities.
3M Global Volunteer Day
For the second year, 3M Global Volunteer Day
brought 3M employees around the world together tomake all of our moments matter for collective impact
internationally. This year we increased participation

3M 2016 Sustainability Reportat our global locations from 15 to 88—with morethan 16,000 volunteers serving in schools and youth
organizations from St. Paul to Spain to South Africa.
3Mgives promoted diversity and inclusion to support thecompany’s “I’m InVOLved” theme for 2015.

Collaborating With Our Communities | 50

Assistance for Veterans event to help veterans who arehomeless. 3M's Women’s Leadership Forum volunteers
chaired the 3M-sponsored DiscoverE Global Marathon
for women in engineering and technology.
Employee Engagement Insights

3M Volunteer Match
3M encourages and supports volunteerism through 3M
Volunteer Match, providing $250 matches to eligible
organizations for employees who serve 20 hours ormore (retirees 25 hours) in a calendar year. Since theinception of the Volunteer Match program in 2001, 3M
has donated more than $6.3 million in the names of
25,844 volunteers to over 3,000 organizations in all
50 states. In 2015, 3M donated $562,000, matching
2,241 volunteers to 1,008 organizations in 46 states plus
Washington, D.C.
Nonprofit Board Service
To support the hundreds of 3Mers serving on non-profit
boards, 3Mgives provides resources to help bolster theirimpact. Initiated by a 3M Foundation Board member,
3M hosted an “All A-Board Bar-B-Que” where 3M
recognized employees for their service at this inaugural
3M Nonprofit Board Service Luncheon. The event
provided an opportunity to network and share bestpractices. 3M’s partner, MAP for Nonprofits, compiled
a new training on board governance trends to help
participants to better serve their organizations. The
response to the event was overwhelming and this will bean annual event.
Employee Resource Networks
3M has nine employee affinity groups in St. Paul andthe 3Mgives team has connected the networks withvolunteer opportunities of interest to each network.
For example, members of the GLBT+ Network packed
lunches for youth at Face to Face, an organization
focused on helping youth who are homeless. The African
American Network was connected with the Martin
Luther King Jr. Day Service Coalition, a collaborationof Twin Cities Corporations and, in 2015, painted theafter-school youth spaces at the YWCA in St. Paul.
Members also led a panel for Twin Cities Rise! beneficiaries to help prepare them for the future, earning them
the Twin Cities Rise! Community Partner Award. 3M’s
Native American Network packed school supplies for
American Indian Magnet School students, and membersof our Military Support Network served at the Minnesota

3Mgives incorporates insights from 3M employees toinform the development of programs and partnerships.
The 2015 research indicates that nearly all 3M
employees agree that it is personally important tothem to work for a socially responsible company and
87% of 3M employees agree that 3Mgives community
investments make them proud to be a 3M employee.

Enhancing Our Communities
3Mgives Campaign in Partnership with United Way
3M partners with United Way and nonprofit agencies
around the country in an annual workplace giving
campaign to raise funds and volunteer for local
community causes. 3Mers at Headquarters, in plants,
and at our Austin, Texas office rally together to make adifference for people-in-need in their communities.

In 2015, 3M’s results were the best everrecorded by the company and 3Mers nationwide
raised more than $6.1 million against a $5.8
million goal. Contributions soared in all areas –with more than $4.2 million raised in the Twin
Cities, $1.4 million raised from sites nationwide,
and $380,000 raised in Austin. In addition,
3Mers contributed their time and talent tocommunity causes in record fashion – morethan 53,000 hours, a 75% increase over prioryear. The dedication and commitment of 3Mers
nationwide led to more than one million lives
being impacted in 150 3M communities.

National Museum of African American History
and Culture
3M is a Founding ‘Cornerstone’ Donor of $5 million
to the National Museum of African American History
and Culture, a Smithsonian organization in Washington
D.C. (opening in 2016). In 2015, 3M supplemented cash
contributions with innovative 3M products to bothprovide the foundation for the building and enhance the3M 2016 Sustainability Report

Collaborating With Our Communities | 51

visitor experience for years to come. The Museum will
document and celebrate African American history andculture by giving voice to a story that is quintessentially
American -- a story of hope and resiliency, of struggle
and pain, of successes and triumphs. This is a story anda museum for all Americans, calling on each of us to
examine how our nation has been - and continues tobe – transformed by the African American experience.
The Museum will broaden the understanding of thegreater American story through the lens of the African
American experience.

a prime example of an innovative investment right in 3M
headquarter's backyard.

3M was recognized in the Smithsonian’s annual reportfor donating 3M construction materials, safety products
and touch screen monitors. In all, 3M donated morethan $1.6 million worth of products to help construct
and enhance the building. In addition to highlighting
3M’s commitment to equity and social justice, thispartnership exemplifies the impact of our products on
the community.

This innovative investment is enabling the Science
Museum of Minnesota to develop the world’s firstdual-4K IMAX Laser Dome Digital projection system –ensuring the highest quality of digital programming forstudents and general visitors to the museum.

Dorothy Day Center
The Dorothy Day Center serves multiple functions in St.
Paul and transforms lives for underserved populations.
The Center provides meals, mental health services
and medical care, showers, and much more to help
people experiencing homelessness. They also provide
emergency shelter for hundreds of people each night.
3M committed $750,000 worth of cash and productto the community's new vision for the Dorothy Day
Center. This two-building campus is designed toprevent and end homelessness by utilizing an integrated
continuum of emergency shelter, supportive services,
access to resources and permanent supportive housing.
The increase in homelessness in our region is well
documented. In its most recent survey, Wilder Research,a leading non-profit research organization based in
Minnesota, found a 25% increase in homelessness
during the Great Recession and another 6% increase
from 2009-2012. The Dorothy Day Center is a visible,
daily reminder of the increasing needs in our St. Paul
community to prevent and end homelessness.
This project is based on innovative and proven models
showing documented success in moving those hardest
to serve clients along the continuum from crisis tostability to self-sufficiency. 3Mgives recognizes that the
Dorothy Day Center does so much more than providing ashelter – they provide a caring atmosphere to encourage
individuals to gain self-sufficiency in the long run. This is

Science Museum Omnitheater Capital Investment
As a part of a multi-year commitment, 3M invested$500,000 in the Science Museum of Minnesota to
replace the theater's current film projection system witha state-of-the-art digital laser projection system thatwill assure the continued vitality and the cultural andeducational programming for the next 10-15 years.

International Giving Fund – United Way Worldwide
To enhance 3M’s giving around the globe, theInternational Giving Fund was established with United
Way Worldwide to support the company's international
community priorities and engage 3Mers in community
activities. In 2015, 3M invested $700,000 to establish
this Fund through United Way Worldwide. 3M locations
across the globe apply for funds as a match for theircontributions to signature partners. All funded programsmust meet NGO (non-governmental organization)
standards of the country and meet compliancestandards such as the Foreign Corrupt Practices Act
and others. The 3M in-country leader assesses theopportunity for the company and the community.
United Way Worldwide vets the organization to ensurecompliance with local and international laws.
3Mgives invested, in partnership with United Way
Worldwide, in nine initiatives in 2015 – leveraging
approximately $768,000 in cash and product contributions from international subsidiaries worldwide. This
includes a co-investment with 3M China to promotepreschool readiness among the children of migrant
workers by improving the teaching quality of caregivers.
3Mgives is also supporting 3M Canada in efforts toempower youth and educators to create sustainablecommunities with a $40,000 investment to core national
partner, Learning for a Sustainable Future. 3Mgives
partnered with leaders in Mexico, Brazil, and Argentina
to launch an innovative STEM Science Fair Initiative inpartnership with United Way Worldwide, local universities, and other partners. This investment enabled3M 2016 Sustainability Report

3Mgives to align community investments with 3M’soperational footprint.

Building Sustainable Communities
Closed Loop Fund3M committed $5 million to the Closed Loop Fund (CLF),
a collaborative social impact fund supported by leading
companies that provides municipalities access to capitalneeded to build comprehensive recycling programs.
The fund aims to (1) achieve a reduction of more than 75
million tons of greenhouse gas emissions, (2) divert 27
million cumulative tons of waste from landfills, (3) create
27,000 new local jobs, (4) help municipalities save morethan $1.9 billion in waste disposal costs, and (5) provide
packaged goods companies with much greater access torecycled materials.
Cities across the nation are spending billions of dollars
sending recyclable materials to landfills. These cities arelosing revenue from selling recyclables and U.S.-based
companies like 3M are missing out on a robust supply ofrecycled material in their supply chain. This partnershipis one of 3M’s innovative approaches to strategic social
investing – it is the company’s first program related
investment (PRI) that will actually be paid back to thefoundation to recycle funds back into the community inthe future.
CALSO Social and Technology Accelerator
3M invested $91,000 in CALSO for the developmentof their technology accelerator in Austin, Texas. With
this one-of-a-kind accelerator program in the Greater
Austin area, CALSO will support technologicallyinnovative startups developing products and services
tackling social, environmental or other urban issues. Bybuilding a bridge between the technology and social
entrepreneurship sectors, CALSO aims to foster technologically innovative solutions for social change. Austin
has become one of the most innovative tech cities in theworld, providing startups with a unique ecosystem togrow, scale and thrive. However, social entrepreneurs
are lacking business support services - this missing
link is particularly damaging as the need to develop
affordable technologies to address social and environmental challenges is growing.
This new incubator will support seven social ventures
for its first year through a yearlong program providing

Collaborating With Our Communities | 52

entrepreneurs with a co-working space, classes,
workshops, events, mentorship and greater visibility.
With this program, we aim to pioneer the social andtech revolution in Austin and contribute to designing afavorable local ecosystem for innovation and sustainability. 3Mgives believes that business can be a powerfor good and this is exemplified most clearly throughsocial enterprises. This innovative investment focuses
on developing technologies and social enterprisesthat can disrupt barriers to economic success andoverall well-being for the world’s most underserved
communities.
3M Catalyst Leadership Way Partnership withPYXERA Global
In 2015, 3M invested in the development of an
innovative program with PYXERA Global to leverage
the skills of 3M employees to effect social change on
a global scale. Many NGOs and governmental organizations around the world have limited resources to focus
on capacity development. To address this need andsupport great partners, 3M created the 3M Catalyst
Leadership Way Community Project to utilize the bestof what we have to offer—our people! The 3M Catalyst
program provides the opportunity for teams of 3M
senior executives to engage their professional skills to
support the operations of global NGOs operating in theaccess to water and water quality sector. Participating
volunteers are divided into two teams of 10 for
three-week engagements in each location. Each teamwill be further sub-divided into teams of 3-4 to support
a single organization on a demand-driven capacity
building project. The initial project is set in Mumbai and
Chennai, India in April, 2016. Prior to their international
assignments, participating 3M volunteers undergo six
weeks of virtual pre-work.
The main goal of this partnership is to leverage
the specialized skills of 3M leaders to improve theoperational capacity of community organizations. As
far as social impact, 3Mgives strives to enable select3M executives to empower non-profit organizations toreport improved operational capacity – enabling theseorganizations to improve more lives in a meaningful
way. In commitment to improving every company, every
home, and every life, the 3M Catalyst Leadership Way
Community Project is developed to provide leading
3M employees with an applied immersive leadershipdevelopment experience to expand their global mindset.
Participants will have the opportunity to work with local

3M 2016 Sustainability Report

Collaborating With Our Communities | 53

communities to build capacity and provide innovative
solutions to improve lives.
This investment enables 3M to enhance employee
engagement globally by empowering 3M employees
to support underserved individuals in Chennai andMumbai, India. In addition to the tremendous social
value, 3M senior executives will get valuable experience,
including the following benefits:•

Further develop leadership behaviors•

Navigate uncertainty, complexity, and ambiguity•

Expand cultural awareness•

Develop sophistication in local relations
and regulations•

Observe, interact, & partner with local
NGOs / governments•

Increase global perspectives in adeveloping market•

Lead and engage in a multicultural environment

2015 Giving by Focus Area
Cash

In-Kind

Total%

Volunteer Hours

Education$11,518,737$11,952,525$23,471,262

33%

96,809Community$19,478,865$24,597,846$44,076,711

63%

206,701

Environment$2,757,185$93,662$2,850,847

4%

19,460$33,754,786$36,644,034$70,398,820

100%

322,970

Total

2015 Global Giving by Region

Charitable Corporate
Cash Donations (USD)

Charitable Foundation
Cash Donations (USD)

In-Kind
Donations (USD)

Total Donations (USD)

Asia Pacific$211,874$16,000$622,500$850,374

Canada$685,597$0$298,182$983,779

Europe MEA$558,451$39,413$88,728$686,592

Latin America$2,273,101$10,500$136,788$2,420,389

United States$12,282,681$17,677,170$35,497,836$65,457,686

Total$16,011,703$17,743,083$36,644,034$70,398,820

3M 2016 Sustainability Report

Respecting Human Rights | 54

Taking Action

Respecting Human Rights

A respect for the rights of all humans across the globe
guides everything we do.

We believe what the company stands for is just as
important as what we sell. For 113 years, we have built a
reputation for integrity and doing business the right way.
We expect all employees to act ethically, honor humanrights and sustain and advance 3M’s global reputation.
While 3M has subsidiary operations in more than 70
countries, we have one Code of Conduct that applies
everywhere 3M does business. Our Code establishes aconsistent standard of conduct for every employee andhelps define the ethical decision-making we expect ouremployees to make every day.

3M respects international human rights
principles, including the United Nations
Declaration of Human Rights, the European
Human Rights Convention, the United Nations
Guiding Principles for Business and Human
Rights (UNGP), the International Labor
Organizations’ Declaration on Fundamental
Principles and Rights at Work, the OECD,
Agenda 21, and the UN Convention Against
Corruption.

Leading with Integrity
and Values
3M is committed to respecting human rights inour own operations and in our supply chain.
9
3M’s Global Human Rights Policy Statement
was adopted in 2013, and 3M became a member of the
U.N. Global Compact (UNGC) in early 2014, thereby
committing to align our operations and strategies withG4HR

3M 2016 Sustainability Report

the UNGC principles on human rights. Our Global
Human Rights Policy Statement includes the following
elements: Safe and Healthy Workplace, Respectful
Workplace, Workplace Security, Work hours and Wages,
Freedom of Association, Child Labor, and Forced Labor.
Within our own business, 3M’s approach for managing
and ensuring human rights aligns with 3M’s Code of
Conduct, which recognizes the right of employees
to have a respectful workplace. 3M continues toimplement our human rights program through our global
policy statements, a management system utilizing
self-assessments, audits, training, and ultimately,
metrics tracking.
Our Code of Conduct Principles are comprehensive,
clear, consistent, well-communicated and available toall employees. The Code helps employees and others
acting on 3M’s behalf take a consistent, global approachto understanding and following fundamental compliancerequirements. 3M employees, including supervisors,
managers and other leaders, are responsible forunderstanding the legal and policy requirements that
apply to their jobs and, unless prohibited by local law,for reporting any suspected violations of law or thesepolicies. Upholding 3M’s Code of Conduct and values
is the responsibility of everyone acting on 3M’s behalf.
3M recognizes that reporting suspected misconduct andhuman rights violations takes courage. Our employees
are encouraged to raise questions or report misconduct
or potential misconduct to management, 3M LegalCounsel, the Compliance and Business Conduct
Department, their Human Resources Manager, or to
3M-Ethics.com.
In addition, 3M's existing Supply Chain Policies andNext Generation Supplier Responsibility Code set
supplier standards and expectations in the areas ofenvironmental, health and safety, transportation, labor,
and human resources and supplied materials. The
sourcing policies apply to the selection and retentionof all suppliers that provide goods or services to
3M worldwide.

Respecting Human Rights | 55

Under the principle Be Respectful, 3M’s Code of
Conduct also requires 3M employees to selectand retain suppliers, contractors, or outsourced
manufacturers and service providers whocomply with all applicable laws and regulations
and meet 3M’s environmental, health and safety(EHS) values.

We have a global framework around management
systems to look at our internal practices and assess
human rights violations. Our internal audit process
is truly global, and we are increasing the number ofassessments we are performing. This provides us witha global perspective on our own internal locations,particularly our manufacturing locations. We have
now completed a full cycle of internal assessments
for all manufacturing locations in Asia. We have alsodone assessments in Latin America, Europe, and the
Middle East.
We support the UN Guiding Principles (UNGP) on
Business and Human Rights. Our human rights
management system helps us implement the “protect,respect, remedy” framework. We also support the
principles of due diligence outlined in the UNGP. Andof course, our Code of Conduct requires compliancewith all applicable laws and respect for internationallyrecognized human rights in all of our global operations.
We also respect the ILO Declaration on Fundamental
Principles and Rights at Work. Adopted in 1998, theDeclaration commits Member States to respect andpromote principles and rights in four categories, whether
or not they have ratified the relevant Conventions. These
categories are: freedom of association and the effective
recognition of the right to collective bargaining, theelimination of forced or compulsory labor, the abolitionof child labor and the elimination of discrimination in
respect of employment and occupation.

3M 2016 Sustainability Report

Human Rights Elements
Safe and Healthy Workplace
One of 3M’s primary goals is to ensure that all
employees are provided a safe and healthy workplace.
3M has environmental, health and safety policies andpractices that comply with or, in many cases, exceed
applicable laws and regulations. See Safety and Healthsection of this report for further information.

Respectful Workplace
3M is committed to attracting and retaining a diverse
workforce by creating the kind of inclusive work
environment 3M employees want and can be proudof. Our Equal Employment Opportunity (EEO) policies
prohibit all forms of discrimination or harassment
against applicants, employees, vendors, contractors or
customers on the basis of race, color, creed, religion,sex, national origin, age, disability, veteran’s status,
pregnancy, genetic information, sexual orientation,
marital status, citizenship status, status with regards
to public assistance, gender identity/expression or any
other reason prohibited by law. Our affirmative action
policies and programs are designed to ensure equal
opportunities for qualified minorities, women, covered
veterans and individuals with disabilities, and also toprovide reasonable accommodation to individuals withdisabilities.

Working Hours and Compensation
3M complies with minimum wage legislation globally. In
most countries where 3M does business, our compensation exceeds legal minimum wage requirements.
Our competitive compensation reflects our practice of
establishing competitive salary ranges based on actual
pay data from benchmark peer companies. 3M also
complies with all applicable laws relating to overtimeand breaks.

Freedom of Association andCollective Bargaining
G4

G4

HR SD
4

11

3M works diligently to create a work
culture that affords all employees theopportunity to work without fear of

Respecting Human Rights | 56

intimidation, reprisal or harassment, in an environment
where employees are able to get their questions
addressed in a fair and timely manner. In all locations,the company’s relationship with employees, whether
union or nonunion, is a key responsibility of all leaders,assisted by human resources representatives. Human
resources professionals work with all employees tomaintain positive employee relations. 3M recognizes andrespects the ability of employees to choose whether or
not to join unions and engage in collective bargaining, as
permitted by applicable laws in the countries where 3M
does business. 3M has identified countries wherecollective bargaining rights may be at risk, and ensures
3M Human Rights Policies applies to all 3M employees
worldwide. Approximately 29 percent of 3M’s global
workforce is unionized.
Our Human Rights Policy Statement has a specificsubdivision on the freedom of association, which
ensures that we respect “the ability of employees tochoose whether or not to join unions and engage incollective bargaining, as permitted by applicable laws in
the countries where 3M does business.”
3M is a signatory to the UN Global Compact, which also
covers the freedom of association. UN Global Compact
Principle 3 states that “businesses should uphold thefreedom of association and the effective recognitionof the right to collective bargaining.” It is of the utmost
importance that we have a good working relationshipwith our employees, and we spend a lot of time training
our leadership to ensure that we foster a positiveenvironment.
We follow all applicable local laws and regulations
regarding notice periods in the event of business
operations for both union and non-union employee’s
changes. 3M's Respectful Workplace Principle statesthat "everyone is entitled to respectful treatment in
the 3M workplace. Being respectful means being
treated honestly and professionally, with each person's
unique talents, background and perspectives valued.
A respectful workplace is free from unlawful discrimination and harassment, but it involves more thancompliance with the law. It is a work environment thatis free of inappropriate or unprofessional behavior andconsistent with 3M's ethics and values - a place where
employees can all do their best, and where employees
are free to report workplace concerns without fear of
retaliation or reprisal." Consistent with major international standards, 3M has similar principles that prohibit3M 2016 Sustainability Report

the use of forced or bonded labor, and the employmentof children under age 16.
As previously mentioned, we respect the ILO
Declaration on Fundamental Principles and Rights
at Work, committing Member States to respect andpromote principles and rights in the following four
categories; freedom of association and the effective
recognition of the right to collective bargaining, theelimination of forced or compulsory labor, the abolitionof child labor and the elimination of discrimination in
respect of employment and occupation.

Child Labor/Minimum Hiring Age
3M complies with all applicable laws relating tohiring minors and applies a global minimum
5
hiring age of 16 even where the law allows
hiring workers younger than 16. 3M has those same
expectations for all vendors doing business with us.

Respecting Human Rights | 57

employee's supervisor or manager or the assigned
Human Resources or Employee Relations Manager.
Employees who are unsure of the identity of theirassigned HR/ER Manager can reference Identifying Your
Human Resources Contact on 3M Source or, alternatively, may report concerns through HR Help at
651-575-5000 or 1-877-496-3636. Employees withconcerns directly related to 3M's Business Conduct
Policies may report concerns electronically or telephonically through 3M-Ethics at 1-877-363-8442 or online atwww.3M-ethics.com. HR Help and 3MEthicsPoint
accept reports from anonymous callers (as permitted by
local law), as well as callers who wish to self-identify.
See 3M’s Business Conduct policies for more
information regarding how to report a concern.

G4

HR

Forced and Compulsory Labor or
Human Trafficking
3M complies with all applicable laws andemployment regulations and does not engage
6or participate in forced labor. 3M has thosesame expectations for all vendors doing businesswith us.
G4

HR

California Transparency in Supply
Chains Act
3M's efforts to eradicate forced labor and humantrafficking from its direct supply chains are discussed
in more detail in 3M's California Transparency inSupply Chains disclosure, described in the Responsible
Sourcing section.

Filing, Addressing, and Resolving
Grievances (Human Rights, Labor
Practices, Environmental, Safety, etc.)
3M makes available multiple
internal resources to which
3, 12
11
16
employees may raise theirconcerns and have them heard and addressed asneeded. In most cases, the most effective channel is the
G4

G4

G4

HR SO LA

Human Rights Awareness and Training
To ensure that employees are aware of 3M policies
related to human rights, 3M provides regular training
to employees regarding our Business Conduct Policies,
including 3M’s Respectful Workplace Principle.
Employee training regarding our Respectful Workplace
Principle includes training on 3M’s Human Rights Policy
and 3M’s commitment to human rights. Current training
includes direction on how employees can raise issues forinvestigation and response. All 3M locations also post
information on how employees can report any concerns.
The enhanced training will be rolled out to all employees
globally, except for production employees outside theU.S. because of translation barriers. 3M will work toward
providing training to that population as well in the future.
Finally, 3M’s website also has information on corporate
policies, as well as links and additional information on
how to report any concerns.

Human Rights Performanceand Assessment
3M’s employee relations staff conducts site
­self‑assess­ments of workplace practices on a8
biannual basis, which include review ofpractices related to 3M’s Human Rights Policy to ensurethat practices are consistent with and reinforce thatpolicy. Various data is tracked through the process to
identify potential gaps and opportunities for
improvement. To date, approximately 70% of sites have
G4HR

3M 2016 Sustainability Reportbeen assessed including self-assessments implemented
in 3M operations in the United States, Canada, Latin
America, Asia and Europe.
In addition, corporate audits are conducted of site
workplace and human resource practices. Assessment
and auditing of suppliers is also conducted to assurecompliance with 3M’s expectations related to labor
practices (see the Responsible Sourcing section of thisreport for more details). To the best of our knowledge,
there were no incidents related to the rights ofindigenous people in 2015.

Ensuring Human Rights throughContracts and Training
We perform global training to ensure that all
3M employees comply with the law, 3M’s Code1-2,7of Conduct and supporting Policies, Standards
and Procedures. 3M Compliance & Business Conduct(C&BC) has created a Compliance Training andCertification Program that ensures all 3M employees areaware of and understand their responsibilities andobligations. C&BC is responsible for the management
and administration of the Compliance Training andCertification Program.
G4

HR

Respecting Human Rights | 58

Our Global New Employee Compliance Course Programis based on the employee records in the 3M HR system.
Employees are assigned courses based on their job
function, country location, production/non-production,and supervisor/non-supervisor status. Email notifications
are sent to the employee's 3M internet email address
informing them of their course requirements andtimeline for completion. The new employee courses are
due within 60 days of assignment.
The “Compliance & Business Conduct Overview”
online course is hosted in the Corporate Learning
System (LSO). Once the course has been assigned, the
new employee can access it from their “My Training
Activities” page in LSO. The remaining new employee
online compliance courses are hosted on the C&BC
Compliance Course site.
For additional information on our commitment to humanrights, go to:
3M Global Human Rights Policy Statement
3M Equal Opportunity Employment
3M Respectful Workplace Principle

3M 2016 Sustainability Report

Public Policy | 59

Taking Action

Public Policy

We live our values and corporate vision through our
public policy pursuits.

As a diverse global company, developing 3M public
policy priorities can be a challenge. 3M manages
this by working with local, national and international
government agencies and through membershiporganizations. The public policy issues on which 3M
engages extend beyond borders to include promotinginternational trade, sustainability, respect for intellectual
property rights, public health, worker safety, security
and international law, and innovation.
In a fast-moving global environment, 3M’s public
policy values remain consistent even as they address
the unique needs of the national, regional and local
governments in locations where we operate. 3M
reinforces our corporate vision and principles, but we
continually identify and re-evaluate our global public
policy priorities to address changing circumstances.
For example, in the United States, an evaluation processdeveloped by the 3M Government Affairs Department
establishes a public policy agenda of issues impacting

our businesses. Public policy teams develop a Top 10 list
(see below) of Priority Public Policy Issues that serves
as a road map for all forms of engagement with federal,state and local governments.
Chief among these screens used in determining theTop-10 list are issues with the potential to significantly
affect 3M’s financial performance and/or our corporate
reputation. Other screens are the immediacy of impact
on the company; situations in which 3M may be uniquely
advantaged or disadvantaged; importance based on
instinct and/or history; or employee/retiree satisfaction.
Besides linking 3M’s vision to the needs and prioritiesof government officials, the Top 10 list helps ensure
the many faces of 3M speak with a single, unified
voice. Internationally, 3M managing directors of hostcountry businesses are responsible for evaluating anddetermining key government issues globally in theirrespective countries.

3M 2016 Sustainability Report

Public Policy | 60

3M U.S. Priority Public
Policy Issues
1. Tax Policy – Tax reform is essential to ensuring thelong-term competitiveness of American businesses
and workers. 3M believes business tax reform should
focus on a significant reduction of the corporate
income tax rate, transitioning to a competitive
international system, and ensuring incentives for
U.S.-based IP ownership. In addition, state tax policy
should incentivize capital investment and sustainable
job creation by rewarding plant expansion andmodernization investments, and efforts to increase
employment.

is the most expensive in the world, driven often bylawsuit abuse. To ensure the legal justice system isfair, efficient and consistent, we support reforms
making liability litigation more equitable, subjecting
punitive damages to reasonable caps, and ending
destructive practices like indiscriminate screening,
venue shopping and case bundling. Such reforms canbe achieved while ensuring that those injured by faulty
products receive fair compensation proportionate
to the injury of the claimant and the fault of the
defendant.

2. Homeland Security/Defense – 3M believes ournation’s homeland security and defense preparedness
should be strengthened through improved borderand immigration security, improved force protection
measures, additional support for first responders, andplanning for pandemics or other national emergencies.

5. Cyber Security Policy – Because of 3M’s
commitment to protecting the privacy of personallyidentifiable data and ensuring business continuity, we
support legislative efforts that will protect the nationfrom cyber threats. Recognizing no institution has
the resources to respond to global threats or vulnerabilities on its own, we support efforts to facilitate
information sharing on cyber threats, coupled withreasonable liability and privacy protections. Data
privacy initiatives must recognize that businessneeds to maintain flexibility to compete in the global
economy, and that costly and burdensome regulations
will negate the effectiveness of any such activities.

3. Sustainability/Environmental Policy – 3M's
strategies for sustainable development encompass
the pursuit of customer satisfaction and commercial
success within a framework of environmental,social and economic values. 3M continues to makesignificant investments to reduce the environmental
footprint of our operations; and our sustainableproducts help customers reduce their environmental
footprint and help to meet their sustainability goals.
Finally, 3M believes environmental policy andregulations should be guided by science-based
decision making.
4. Patent Protection/Legal Reform – 3M believes
in strongly supporting patent rights for innovatorsand patent holders across this nation and globally.
We support efforts to enhance the resources andcapabilities of the United States Patent and Trademark
Office, improve the quality and transparency of thepatenting process, and bring more balance, objectivity
and predictability to patent infringement litigation. We
support efforts, both in the U.S. and in patent offices
and courts globally, to enhance the enforceability ofpatent rights against infringing activities (including
bad faith claims of infringement) and the remedies
available against infringement. The U.S. legal system

6. International Trade Policy – The U.S. economy
and American jobs depend on the expansion offree and fair trade through the passage of new
trade agreements. 3M supports the Trans-PacificPartnership and the Trans-Atlantic Trade andInvestment Partnership. International trade policy also
requires a level playing field, including recognition,
protection, and enforcement of intellectual property
rights and trading rules.
7. Health Care Policy – The U.S. health system should
remain market-driven and not weaken the current
employer-based coverage system. Within payment
programs, reforms should focus on increasing
efficiencies within the system as well as improving
quality outcomes and patient safety in the areas ofcomplications, readmissions, ER visits, and more.

3M 2016 Sustainability Report

8. Regulatory Reform and Economic Development
Policy – The U.S. regulatory environment plays
a vital role in advancing the nation’s economic
security interests. To promote genuine competition,
regulatory reforms must include thoroughcost-benefit and risk assessments, while preserving
the highest standards for safety, quality andefficiency. State government economic development
incentive programs are important to 3M’s U.S.
plants expansion efforts. In particular, tax incentive
programs advance competi­tiveness at a time when
there’s strong competition among plants for 3M’s
CapEx dollars; as well, state workforce training
programs are important to sustainable job creation.
9. Energy Policy – National (and state) energy policy
should ensure a continuous, reliable and uninterrupted supply of energy at competitive rates.
3M supports policies that address new sourcesof energy, alternative energy, faster adoption oftechnology and improved energy efficiency.
10. Transportation Infrastructure Policy – The
maintenance and improvement of the nation’stransportation infrastructure – which is important to
3M as a supplier of traffic safety and construction
products, and as a user of the system – can only
be achieved if the Highway Trust Fund remains
solvent. 3M believes all highway user fees should be
dedicated to the fund.

Public Policy | 61

Global Challenges
Every day, 3M innovation aims to tackle
some of the world’s most pressing areas ofconcern.

3M 2016 Sustainability Report

Global Challenges | 63

Global Challenges
At 3M, we look at sustainability in terms of sharedglobal needs and the future of our business. As the
population grows, particularly in emerging economies,
challenges like energy availability and security, rawmaterial scarcity, human health and safety, education,and development must be addressed to ensure people
across the globe can lead healthy, fulfilling lives. We
recognize that our impact includes that of our own
operations as well as the far greater impacts we canmake through our efforts in local communities and forour customers through the products we offer.

Raw Materials
The world’s population is growing larger,
living longer — and consuming more. With
this increased pressure on our finite natural
resources and materials, we must movebeyond low-cost, recyclable materials to renewableproducts. Companies that address this issue not only
help the planet, but they also gain a competitive
advantage in the marketplace.
3M has worked on this challenge for decades andwill continue to innovate into the future, developing
renewable alternatives for impacted resources, revolutionizing recyclable materials and becoming moresustainable.

Education and Development
Global unemployment rates are expected toremain steady through 2017, particularly
among youth. Today’s job market has fewer
opportunities, with most available jobs too
specialized for young people and recent graduates. As atechnology company, 3M recognizes the importance ofwell-trained science, technology, engineering and math
(STEM) graduates — we need young minds to step into
specialized roles and help our company solve futurechallenges.

Water
People consume it, farm with it andmanufacture products with it. Reducing
water consumption and improving water
quality are important elementsof environmental stewardship.
Water is our world’s most valuable natural resource.
Despite water’s prevalence, freshwater makes up only
2.5 percent of our total global water supply. A majorityof freshwater is used for irrigation purposes, but nearly
30 percent of it is used for domestic consumption andindustrial functions. Aging infrastructure and increased
demand places a premium on clean, accessible water for
3M, our customers and communities around the world.
Some of our customers are finding it difficult to sourceor deliver clean, accessible water. We can help themsolve this problem by developing technology that
increases water efficiencies and improves quality.

Energy and Climate
Access to a dependable energy supply
directly affects all businesses andcommunities. Energy usage and climate
concerns require systematic change, andwe’re here to drive that forward.
From air emissions to fossil fuels, 3M takes a proactive
and collaborative approach to addressing energy
demand and climate change — in our operations andfor our customers. We partner with our customers tounderstand their needs and address those needs. The
issues around effective use of energy resources andclimate change are complex and interconnected. At
3M, we are focused on seeking solutions that promoteenergy conservation, clean energy infrastructure,and reductions in atmospheric greenhouse gases. We
already have many products and technologies that
reduce the impact of energy use, promote energy
efficiency, and reduce greenhouse gases. Our goal is tocontinue developing and implementing global concepts
for the greatest long-term impact.

3M 2016 Sustainability Report

Health and Safety
Global health and safety issues areprevalent in workplaces around the world.
Food poisoning and water-borne illnesses
lead to the deaths of 3 million people acrossthe globe each year. At the same time, approximately
one of every 20 hospitalized patients in low- and middleincome countries will contract an infection while under
medical care.
Governments, corporations and consumers are driving
global demand for safety, protection, healthcare andfood safety solutions. Creative innovation, technology,
education and collaboration are all critical if we are to
tackle the human health and workplace safety concerns.
For decades, 3M has had entire business divisions
focused on creating products and services for humanhealth, protection, security and safety. At the same time,
the company has embraced this commitment in its own
operations.

Global Challenges | 64

3M 2016 Sustainability Report

Raw Materials | 65

Global Challenges

Raw Materials

See the ways we’re moving from recyclable materials
to renewable products.

The world’s population is growing
larger, living longer — and consuming
1-2
20-21, 23-25
more. With this increased pressure
on our finite natural resources and materials, we mustmove beyond low-cost, recyclable materials to
renewable products.
G4

G4

EN EN

As competition for nonrenewable materials increases,
companies and people have been forced to become
smarter and more efficient about resources when
designing product lifecycles. To keep pace with today’s
technology, consumers are upgrading devices at a fasterpace and creating a greater need for raw materials to
manufacture those products. This puts a strain on theworld’s resources, and companies that address this issue
not only help the planet, but they also gain a competitive
advantage in the marketplace.
Raw materials are not only used in the production of
manufactured goods, but they are also used in a variety
of processes and applications. Material diversity andavailability based on shifts in supply and demand impact
technological, operational and geographic developments
across the global economy. Raw material scarcity implies
that long-term global demand will exceed world supply.
Efficiencies in product design, and consideration or
recovery of alternative material streams are just a few
potential solutions that we use to address material
shortages impacting 3M’s global supply chains. Closecross-functional collaboration is key to strategicallyunlocking new, improved and unique partnerships.

Approach
Maximizing Raw Material Usage
Raw material usage is a measurement of overall productand process yield throughout our manufacturing
processes and is a key metric for 3M. It’s indicativeof operational excellence in our product design andmanufacturing processes. Our raw material usage
formula quantifies product output versus “all outputs.”

3M 2016 Sustainability Report

Raw Materials | 66

“All outputs” includes everything from the product, theprocess, and all by-products.
The diversity of manufacturing technologies, processes
and products at 3M provides opportunities for creative
waste usage solutions for the Company. Accurate waste
identification is a continuous education process andprovides a foundational opportunity to further advancewaste minimization and recycling at all our locations.
One business’s by-product may connect as anotherbusiness’s raw material. As we continue to grow internationally, integrating consistent, yet resourceful, waste
management practices in accordance to 3M standards
remains a key objective.
As such, we continuously look for ways to recover,reuse and recycle by-products and other waste material
when feasible. And when it’s not usable, we responsibly
dispose of waste materials. The concept of maximizing
raw material usage is important both internally andexternally to address the global challenge of resource
efficiency and scarcity.

Improving our raw material usage through productdesign and operational considerations provides costbenefits throughout our supply chain in material use,energy and transportation efficiency.
Waste from manufacturing sites accounts for the
majority of waste in 3M’s environmental footprint.
3M’s waste metrics include 3M manufacturing
operations with total output greater than 4.536 metrictons per year (10,000 pounds), which represents 97
percent of Sales Value of Production (SVOP) of ourmanufacturing sites.

Optimizing Efficiencies in Operational
Waste and Recycling
3M’s Waste Management Standard applies to all 3M
locations and provides a framework for managing all
waste types from the time of generation until reused,recycled, treated or disposed. The Standard sets abaseline for several core waste program elements andGlobal Package Engineering Historical Sustainability Trend(Package Design Waste Reduction in Metric Ton)
7,000

5,250

3,500

1,750

0
2008

2009

Target*2008-2013 reflects US only data

Paper

2010

2011

Other Materials

2012

2013

2014

2015

3M 2016 Sustainability Report

Raw Materials | 67

Some programs have initiated and implemented
excellent reuse programs, which are then shared as abest practice throughout the organization for replication.
3M continues to work with our customers andmanufacturing partners to manage or develop recycling
programs to continue to support our community
commitment to sustainability.

encourages waste minimization and recycling wheneverpossible. Per the Standard, each location assigns a
Waste Management Coordinator who is responsible
for ensuring that personnel receive applicable waste
training. Compliance with all 3M and other regulated
waste requirements is evaluated through the internal
environmental auditing program.

Many of these specialized projects are a part of
3M Corporate Environmental Operations identifies and3M’s Pollution Prevention Pays (3P) program, whichmeasures efficiency improvement progress towardcelebrated its 40th anniversary in 2015. Over the last 40
raw material usage and waste reduction for sites within
years, the program has prevented over 2.1 million tons
our global manufacturing footprint. The results andof pollutants and saved nearly $2 billion (USD) based on
raw data are used to identify, quantify and prioritize
3P Global Pollution Achievements: 1975- 2015
datafrom the first year of each 3P project.
projects to improve utilizing Lean Six Sigma ContinuousFirst Year Savings aggregatedCumulative Totals(Tons)
Improvement methodology.
In addition to optimizing efficiencies in operational
waste and recycling, 3M continues our long-standing
Results are reviewed quarterly and annually withincommitments to efficient paper and packaging use.
regions, businesses and divisions against goals andWe have reduced designed packaging weight for eighttracking metrics. Specialized teams within the organistraight years, for a cumulative reduction of morezation work on a variety of projects and programs,
than 12,000 metric tons (mT). More than half of that
ranging from basic office recycling to more complex
reduction (~5,000 mT) was in paper-based packaging.
projects such as developing and capturing intrinsic
Until last year, we only gathered this information in thewaste materials generated off a manufacturing line.
United States but have since expanded data collection
Through an evaluation process, all aspects of waste
globally.
reduction benefits or risk are reviewed.

3P Global Pollution Achievements: 1975- 2015
2,500,000
First Year Savings Cumulative Totals (Tons)(Short Tons)

2,000,000

1,500,000

1,000,000

500,000

0
1975

1980

1985

1990

Total Waste Pollution Prevented

1995

2000

2005

2010

Total Air Pollution Prevented

2011

2012

2013

2014

2015

Total Water Pollution Prevented �

3M 2016 Sustainability Report

Hazardous Waste
3M practices waste minimization wheneverpractical to reduce the amount and hazards of25
waste materials generated. Between 2010 and2015 there has been a 13% reduction in absolutehazardous waste as a percent of total waste. 3M is also
dedicated to operating in accordance with all regulations
and managing waste materials safely and responsibly. All
3M locations are required to manage all returned,
recycled, and waste materials from the time ofgeneration until reused, recycled, treated, or disposed.
G4

EN

When 3M transports hazardous waste, it’s for treatment
purposes. Our waste disposal policy requires 3M toevaluate the best possible disposal methods while
reducing all potential liabilities.
Air Quality Management
An important component to 3M’s sustainability
strategy is our commitment to improving air
21
quality globally. Air emissions from 3M
operations include volatile organics, particulates andsubstances listed on the U.S. EPA Toxic Release
Inventory or global equivalent.
G4

EN

As a Company with many solvent-based products, 3M
inherently generates volatile organic compounds (VOCs)
in many of our manufacturing processes. Emissionsof VOCs at many of our manufacturing facilities
require permits with rigorous tracking requirements.
Even where tracking is not required from a regulatory
perspective, 3M’s manufacturing principles require
accurate information on its major sources of emissions
to understand the level of emissions and to identify
opportunities for reductions. 3M has developed internal
programs to minimize its emissions. For these reasons,
3M tracks and reports VOC emissions based on raw
material usage and pollution control device utilization.
3M processes do not generate significant amounts ofother criteria pollutant emissions (i.e., NOx, CO, SO2 andPM) when compared with many other industrial sectors
and utilities and compared with 3M’s VOC emissions.
For many 3M manufacturing processes, NOx, SO2, CO
and PM are created as an indirect by-product or are
generated by combustion. In many locations, emissionsof these pollutants have been determined to be below
thresholds that would require permitting, tracking andreporting. Therefore, we have chosen to focus our
air quality improvement efforts around tracking and

Raw Materials | 68

reducing our VOC emissions, for which we have beenvery successful.

For instance, the 3M manufacturing facility inGreenville, North Carolina, USA successfully
implemented a project to eliminate virtually
all VOC emissions from Greenville’s box
sealing tape coater. The plant’s “Green Team”
is a shining example of 3M’s commitment toenvironmental responsibility.

With the increasing complexity of air quality regulations
globally, reductions in actual air emissions and a solid
air permit and regulatory approach are increasingly
important components of global business growthand long-term sustainability. Air emission reductions
are achieved through a variety of methods at 3M andinclude, but are not limited to, increasing the use of moresustainable raw materials and water-based coatings;
improving process and equipment efficiency; upgrading
equipment; and implementing and maintaining pollution
control technologies. All reduction efforts are integral to
the Company’s overall success and assist the Company
with the challenge of improving air quality in the areas inwhich we operate.
We have made efforts to improve our maintenanceactivities for thermal oxidizers. Thermal oxidizers are
the predominant device 3M utilizes for emissions.
Our efforts to reduce emissions through preventative
maintenance are leading to real, positive changes.
Further, we have begun efforts to update our VOC
standard to ensure a consistent approach throughout
the globe.

Implementing and Maintaining
Pollution Control
Although 3M has made significant progress in reducing
air emissions from our operations through pollution
prevention thinking (i.e., elimination at the source)
and improving process efficiencies (e.g., Lean Six
Sigma), 3M implements and maintains pollution control
equipment when necessary. A variety of pollution
control technologies are evaluated and utilized to control
and reduce our air emissions. These include thermaloxidizers, baghouses, scrubbers and cyclones. 3M
maintains rigorous preventative maintenance schedules

3M 2016 Sustainability Report

Raw Materials | 69

Total Volatile Organic Compounds (VOCs)
Absolute (Metric Tons)

Total Volatile Organic Compounds (VOCs)(Absolute Metric Tons)

2015
2014
2013
2012
2011

0

650

1,300
2011

Total VOCs

1,950

2,600
2012

3,250

3,900

4,550

2013

6,054Total Volatile Organic
5,984
5,429
Compounds Emissions Indexedto Net Sales

5,200

5,850

6,500

2014

2015

5,552

4,767

(Metric Tons/Million USD)

Total Volatile Organic Compounds Emissions Indexed to Net Sales(Metric Tons/Million USD)

2015
2014
2013
2012
2011

0.00

Indexed VOCs

0.05

0.10

0.15

0.20

0.25

2011

2012

2013

2014

2015

0.20

0.20

0.18

0.17

0.16

3M 2016 Sustainability Report

Raw Materials | 70

to ensure proper operation and ongoing air pollution
control effectiveness for VOCs, particulate matterand other air emissions. In the future, 3M is looking to
expand the use of alternative control technologies toreduce energy and natural resource usage of pollution
control equipment, while still providing required air
pollution control efficiencies.

The Montreal Protocol (Protocol) is the firstworldwide agreement designed to protect
human health and the environment against
the adverse effects of the depletion of thestratospheric ozone layer. The Protocol identifies
the list of ODSs that are targeted for control
practices, reductions, or total phase-outs andprovides a phase-out schedule. In addition, somecountries have established regulations regarding
the management of refrigeration appliances.
3M has set forth requirements in order toprovide a framework for how 3M operations
are to manage their refrigeration appliances
containing ozone depleting substances (ODS) in
the context of applicable international protocols,
local regulations and current and future
economic impacts.

VOC Emissions
3M’s commitment to managing and minimizing
its volatile organic compound (VOC) emissions
20
is demonstrated by continued results. 3M has
had an external VOC emission reduction goal since
1990, resulting in 99 percent reduction in VOCs emitted
indexed to net sales. 3M’s results have been driven byplant activities, control device installation and lab
reformulations.
G4EN

3M is happy to announce that we far exceededour 2015 goal regarding VOC reductions. Our
goal was to achieve a VOC reduction of 15%
by 2015 from 2010 base (Indexed to net sales).
Thanks to our commitment to sustainability andinnovation, we achieved a 30.8% reduction index
to net sales.

Ozone Depleting Substances
In order to protect the ozone layer, 3M prohibits theuse of highly ozone depleting substances (i.e. Class I
ODSs – ozone depleting substances) from all products
and manufacturing processes (including raw materials,
intermediates, and process aids) worldwide.
Hydrochorofluorocarbons (HCFCs), a class of ODSs
with lower ozone depleting potential, are in the processof being phased out by regulation. These compounds
are referred to as Class II substances in the US Clean
Air Act, and as Annex C controlled Substances in
the Montreal Protocol. Any use of HCFC (i.e. Class II
ODSs) must be thoroughly evaluated via a life cycle
management review during the concept phase of new
product or process development.

In order to protect the ozone layer in the stratosphere,
production of the ozone depleting substances (ODSs)
noted below have ceased in the developed countries of
the world. The highly ozone depleting substances arereferred to as Class I substances in the US Clean Air Act,and as Annex A, B, and E Controlled Substances in theMontreal Protocol.
Waste Management
Waste management and minimization is an
important component of 3M’s environmental
23-24
stewardship. The 3M Environmental Operations
and Resource Recovery organizations provide corporate
oversight for global waste management activities. 3M’s
Waste Management Standard applies to all locations andprovides the framework and corporate expectations thatare required to manage all waste types from the time ofgeneration until reused, recycled, treated, or disposed.
The Standard sets a baseline for several core waste
program elements and encourages waste minimization
and recycling whenever possible.
G4

EN

We work closely with the Lean Six Sigma organization toincrease waste reduction across all locations. Our waste
reduction indexed to production volume has decreased
nearly 5% since 2010. Over 50% of our manufacturing
plants met their waste reduction goal, and outside of a
few isolated incidents, we have performed very strongly
in terms of waste reduction.

3M 2016 Sustainability Report

Raw Materials | 71

Waste Recycling by Type
(Metric Tons)
2015
2014
2013
2012
2011

0

100,000

50,000
Onsite Recycle + Reuse*

150,000

Offsite Reuse*

200,000

250,000

Offsite Recycle

2011

2012

2013

2014

2015

Onsite Recycle + Reuse*

47,89951,09965,987

69,49865,414

Offsite Reuse*

34,87133,802

31,99031,896

31,766

Offsite Recycle

129,222

128,165

130,698

133,960

134,177*Does not include IMP

Total Waste Indexed to Net Sales(Metric Tons/Net Sales Million $USD)

2015
2014
2013
2012
2011

5.4

Total Waste Indexedto Net Sales

5.6

5.8

6.0

6.2

6.4

6.6

6.8

7.0

7.2

2011

2012

2013

2014

2015

6.05

6.00

6.22

6.44

6.95

3M 2016 Sustainability Report

Raw Materials | 72

Total Absolute Waste by Disposal Type
(Non Hazardous and Hazardous-Metric Tons)

2015
2014
2013
2012
2011

0

75,000Treatment/Incineration

150,000

Landfilled

225,000

300,000

Waste to Energy

Treatment/ Incineration

Landfilled

Waste to Energy

Total Waste

2015

44,400109,423

56,722

210,5462014

44,175

108,703

51,945

204,823

2013

43,225103,034

45,703

191,963

2012

42,961

93,92542,409179,2962011

45,182

92,834

41,118179,133

We did not meet our 2015 waste reduction goal. Our
waste reduction goal was based on our total waste
indexed to net sales. Roughly two-thirds of 3M’s sales
are made in foreign currencies but all are reported in
U.S. Dollars. When the dollar strengthens, as it has been
doing for the past several quarters, it has a negative
impact on our reported sales. This then negatively
impacts our ability to meet our stated waste reduction
goal. Other negative impacts include market changes
in recycling and recent acquisitions that improved 3M’s
overall viability as a business.
3M’s increase in the production of composite materials
such as multilayered films, which provide significant
advantages for our customers, pose a challenge in theability to recycle the material using current technologies.
3M continues to explore options for recyclability.

Our 2025 Waste Reduction Goal is to decrease
manufacturing waste by an additional 10%
indexed to sales. We’ll continue to drive ‘zero
waste’ thinking with our product designs andprocess technologies, as well as waste reduction
work at our manufacturing operations. Now
in its 40th year, our Pollution Prevention Pays
program has prevented over 2.1 million tons ofwaste and saved nearly $2 billion since 1975,
and will continue to play a significant role in ouroperations in the future.

We also aim to achieve zero landfill status at 30% of
our manufacturing sites. Note that zero landfill is notalways the best possible solution. For instance, if waste

3M 2016 Sustainability Reportis being transported many miles for processing rather
than landfill, this may result in large amounts of waste
in the form of emissions. At 3M, we strive to encourage
the elimination of waste in the most responsible,
efficient, and ethical way possible. In addition to ourwaste reduction and zero landfill status goals, weplan to increase repurposing, reusing and recycling ofpotential waste materials to divert from landfill disposal.
Our Lean Six Sigma program and Pollution Prevention
Pays (3P) program are examples of programs that­significantly contribute to waste reduction progress.
Many successful waste projects under these programs
are replicated to varying levels in other facilities.
Although we continue to gain benefit by continuous
improvement at our manufacturing facilities throughincremental process improvements in waste reduction,
our current and future direction for significant
improvements in waste reduction are driven by productand process technology redesigns. These redesign
efforts require prioritized focus, resources and collaboration within our business, sales, marketing, engineeringand laboratory groups, in addition to our supply chain
and manufacturing functions.

Protecting the Least Bell’s Vireo at
3M Corona
The least bell’s vireo is a species of bird thatwas designated as federally endangered in
141986. Historically, it was found throughout mostof the state of California, largely in coastal regions. At
the time of its designation 30 years ago, it was found in
only 8 counties in Southern California.
G4EN

3M Corona has had a relationship with the Santa Ana
Watershed Agency (SAWA) for over 15 years. SAWA
monitors habitat and bird counts in the region. For
several years, the 3M Corona property had a large
number of nesting pairs return each year. Willows are a
popular habitat for vireos, and the number of willows on
3M property has continued to increase over the years
due to a habitat mitigation project in the late 1990s andearly 2000s. In addition to the vireo, 3M Corona has lotsof species that call 3M Corona home. Species include
bobcats, mountain lions, mule deer, blue and whiteherons, red tail and Cooper’s hawks, falcons, coyotes,
rabbits, squirrels, and raccoons, hummingbirds, and awide variety of exotic birds.

Raw Materials | 73

Stories
It’s time to make electronic devices
more recyclable.
3M’s Thermal Bonding Films and Plastics Bonding
Adhesives extend the potential lifespan of mobile
devices and make it easier to recycle them. Ourelectronics bonding solutions enable faster assembly
times and simplify rework by helping manufacturers fix
damaged parts and salvage key components.

So much more than a floor cloth.
Contributing to a clean home families can be proud of …
and doing so with recycled materials and talented local
weavers.
Throughout the Indian culture, clean floors are a sourceof great pride.
Our researchers in India grew up there, and theywanted to create an effective cleaning product at anaffordable price.
They met with families in their homes to learn more.
Then they returned to the lab and created a new kind ofcloth with a unique scrubbing corner for tough stains.
It was a first for India and a first for 3M; while thecompany generates 3,000 patents a year, this is 3M’s
first patent in India.
The next challenge: how to make it affordable forfamilies like the ones they visited? What if they could
also make the product environmentally friendly … while
creating desperately-needed jobs for rural Indians?
The 3M team identified leftover threads from the nearby
garment industry. Working with a nonprofit group, theyfound weavers that could recycle the threads into cloth.
Producing locally not only put people to work; it also
reduced transportation costs and emissions.

3M 2016 Sustainability Report

The end result: an effective, affordable, sustainableproduct that is helping families, particularly women, with
employment in rural areas of India, and with a better,more cost-effective, cleaning solution in urban areas.

3M Infection Prevention Solutions is dedicated todeveloping sustainable solutions. To deliver on thispromise, we challenged ourselves to rethink our surgicaldrapes–to develop a drape that was better for theplanet, for patients and for OR staff. Introducing theimproved 3M™ Steri-Drape™ Surgical Drapes, now
made with plant-based renewable resources, featuring
the same high-quality properties our customers expectfrom us: strike-through-resistant barrier, strength,
adhesion, drapeability and low linting, plus improved
absorption and ease of application.
3M™ Steri-Drape™ Surgical Drapes reduce the environmental impact of medical disposables by decreasing the

Raw Materials | 74

use of fossil fuels and have less CO2 emitted over the
product life cycle than our standard polypropylene
surgical drape.
What’s new:•Nonwoven layer contains 95% renewable
plant-based material•

62% of entire fabric made from renewable
plant-based material•

18% fewer fossil fuel resources used throughout
the product life cycle•

10% less CO2 emitted during the productlife cycle

We are on a journey with our customers to develop
ingenious, sustainable solutions that help address global
healthcare challenges, while protecting the environment
and promoting a healthier world.

3M 2016 Sustainability Report

Water | 75

Global Challenges

Water

People consume it, farm with it and manufacture
products with it. Reducing water consumption andimproving water quality are important elements ofenvironmental stewardship.

Our Approach
Water Quality and Availability
Water is the most valuable natural resource forlife and thriving ecosystems; therefore, our22planet’s consumption must be nurtured andthoughtfully managed. We recognize that reducing
water consumption in our operations and improving
water quality are important elements of optimizing ourenvironmental stewardship. Quantitatively, theavailability of water must meet the needs of current andfuture consumer demands. In addition, water quality
must comply with local regulations and be reliable in thelong term.
G4EN

Water is an important component to the manufacturing
and support systems of several of our products. Becauseof this, 3M continues to actively understand, manage
and work toward reducing our corporate water footprint
while providing innovative solutions to our customers.
We respect our ecological and ethical responsibility andhave a vested interest in preserving and improving water
availability and quality relative to our operations and thecommunities we serve.
3M’s Water Management Standard provides acompany-wide framework, including both general andspecific elements for water management. The standard
requires 3M operations to manage their water resources
through understanding the balance of water use,compliance with regulatory requirements, systematicand prioritized conservation practices, and reporting
usage. Water resources include water intake, effluent
water discharge and rainwater.
To inventory, track and understand water use in ouroperations for improved efficiency, 3M sites are required
to report water data quarterly into a corporate tracking
system. Additional water source, use and discharge
information is collected and provided through an annual

3M 2016 Sustainability Report

Water | 76

assessment and survey process. Aggregated data
is evaluated to determine our progress and identify
opportunities for increased efficiency in higher-use
focus areas.

manufacturing footprint by driving water reduction
and conservation process and technology changes
within our operations. This is the first time we have
had a formal external water reduction goal. We are
currently expanding our internal systems to share best
management practices in regards to water conservation.

Water discharges fall under 3M’s Corporate Water
Standards. 3M operations must manage their water
resources through compliance with regulatory
requirements, conservation and reuse, and reporting ofwater usage internally. For unplanned discharges, we
utilize WIMS (Worldwide Incident Management System)at our facilities. With regard to direct discharges, all of
our facilities have specific internal goals.

Further understanding of where water is originallysourced for use in our operations provides insight into
our potential impacts within local watersheds. In 2015,
based on 3M’s detailed water assessment and survey
across sites, results indicate that 19 percent of water issourced from public/municipal sources, 46 percent issourced from private groundwater sources, 20 percent
is sourced from private surface water sources, and the
Our Footprint
remaining 15 percent is from stormwater, remediation
Total Water Use Absolute
G4
The water data provided below includes(Million Cubicactivity
Meters) and externally recycled sources. Results also
indicatea majority of 3M water use in operations is for
manufacturing sites that produce more than
10
processing products in manufacturing and heating or
4.50 metric tons (10,000 lbs) of product output
cooling of those processes and associated operations.
and accounts for 97 percent of Sales Value of Production
We estimate that approximately 26 percent of the total(SVOP) of our manufacturing sites.
water used was also recycled or reused for secondary
Our 2025 goal is to reduce global water use by an
use within operations in 2015. We continue to improve
additional 10% indexed to sales. Building upon ourour data accuracy through monitoring and measurement.
previous 40% reduction in water usage between 2005
and 2015 (indexed to sales), we will continue to improve
Water conservation efforts have been achieved throughin managing and conserving water across our global
recycling, reuse, product redesigns and improvements

EN

Total Water Use Absolute(Million Cubic Meters)
2015

2014

2013

2012

2011

0

Total Water Use

10

20

30

40

50

60

2011

2012

2013

2014

2015

41.10

43.30

43.30

42.60

42.10

3M 2016 Sustainability Report

Water | 77

Total Water Use Indexed
Million Cubic Meters/Million USD

2015

2014

2013

2012

2011

0.00000.0004

Ratio: Total Water/ Net Sales(M3/ Million USD)

0.00080.00120.00160.00200.0024

2011

2012

2013

2014

2015

0.00140.00140.00140.00130.0014

to our buildings and manufacturing processes. A
majority of our water-intense manufacturing operations
are located in the U.S. and Europe, in areas that are notwater-stressed or water-scarce. However, they also
contribute significantly to our conservation efforts. As
the Company continues to grow globally, thoughtfulconsideration is placed on the type of operations andavailability of water sources.

Water Withdrawal
Reducing water use and improving water
quality are important elements of environmental
8
stewardship. Therefore, 3M continues toactively understand, manage, and work toward reducing
our corporate water footprint.
G4EN

3M’s Water Management Standard provides a global
framework including both general and specificelements for water management within the company.
The standard requires 3M operations to manage ourwater resources through understanding our water use,compliance with regulatory requirements, systematicconservation and reuse, and reporting of water usage.
Water resources include water intake, effluent water
discharge, and rainwater.

To inventory, track, and understand water use in ouroperations for improved efficiency, 3M sites are required
to report water data quarterly into a corporate tracking
system. Additional water source, use, and discharge
information is collected and provided through an annual
assessment and survey process. Aggregated data
is evaluated to determine our progress and identify
opportunities for increased efficiency in higher-use
focus areas.
In addition to corporate goals, internal goals havebeen developed on a divisional level. For instance,
3M’s Materials Resource Division (MRD), a major internalmaterial supplier, is the largest consumer of water
resources at 67% of total 3M water resources consumed
for the company in 2015. Therefore, 3M has focused on
operational efficiencies corporate-wide with additional
focused initiatives within MRD for water reduction.
3M’s total water usage includes sanitary, process,heating, cooling, remediation, and other miscellaneous
sources. Water usage data is tracked and reported
annually on a global basis for manufacturing sites that
produce greater than 10,000 pounds of product per
year. The reporting data accounts for 97% of Sales Valueof Production which provides solid coverage of water3M 2016 Sustainability Reportuse considered material to 3M’s operational environmental footprint. Overall total water consumption has
decreased 40% between 2005 and 2015 indexed tototal corporate wide net sales.
Moving forward, we are proud to expand beyond ourown operations by focusing more on supporting the
Sustainability goals and needs of our customers andour communities. For water, our goals are focused topromote clean water for everyone, everywhere so thatevery person, business and community has the water
they need to thrive.
Aging infrastructure and increased demand places
a premium on clean, accessible water for 3M, ourcustomers and communities around the world. Someof our customers are finding it difficult to source ordeliver clean, accessible water. We help them solve thisproblem through our technologies that increase water
efficiencies and improve quality.

Goals and Results
2025 Goals and Water-Stressed Areas
We have initiated a 2025 goal to engage 100%of water-stressed/scarce communities where
9,26
a 3M manufacturing site uses over 1000 cubic
meters of water annually. The intent is to use a community-wide approach to water management. We are making
great efforts in partnering with local communities toadvance water recycling and conservation. Ultimately,
we aim to help these communities build and manage
their own efforts toward access to clean water into the
future. We are currently in the process of pilot projects
with three sites to help meet our 2025 water goals. Thisis helping us build a global framework to develop site
community plans and benchmarking with outside
corporations on community work.
G4EN

3M uses the definitions and tools established by theWorld Business Council for Sustainable Development(WBCSD) to screen the Company’s various site
locations and their affiliated water use with validated
WBCSD water availability, population, and biodiversity
information both on a country and watershed basis. We
have identified 25 sites located in water-stressed areas
as defined by the an Extremely High Baseline Water
Stress (WBCSD-Global Water Tool) that use equal to or
greater than 1,000 cubic meters annually.

Water | 78

Each 3M site located in a water-stressed area is required
to understand its water use, associated business risks
and impacts and to work with local water resources
to understand potential impacts on the surroundingarea. Identified sites are also requested to do water
conservation planning, outlining current and futurewater conservation efforts. Annual stress-level screening
evaluations are conducted for global operations using
available updates from the WBCSD Global Water Tool,an analysis of site operations and water usage and local
conditions.
In 2015, we met our water goal of having water conservation plans at all in scope sites located in defined Water
Scarce/Stressed Areas. Water conservation planning is acontinuous improvement process. We continue to workwith our sites to assist them in achieving their water
conservation goals.
With an eye on our footprint and the strength of ourtechnologies and collaboration, we acknowledge we cancontinue to make a difference in water availability andquality around the world.
Moving forward, we are proud to expand beyond ourown operations by focusing more on supporting thesustainability goals and needs of our customers and ourcommunities. While we recognize the importance ofwhat we do in our own operations, and will continue toimprove accordingly, we see that far greater impact canbe realized when we partner with others to understandand overcome the challenges we face. For water, thegoal is to promote clean water for everyone, everywhere
so that every person, business and community has thewater they need to thrive.

Stories
Extracting water from the desert
A team from Oxford University has successfully used
3M™ Novec™ Engineered Fluid in a pioneering field
application to assess the quality of water in the Badain
Jaran desert in North West China.

3M 2016 Sustainability Report

Water | 79

This geochemical research will play a crucial roleassessing the level of pollution from both agriculturaland industrial sources in arid regions. It can also be used
to monitor rainfall levels and groundwater recharge rates
to identify areas likely to suffer from water shortages in
the future.
Extracting water from ground samples taken from dry
regions is challenging due to the low moisture content,
meaning that traditional drainage methods can’t be used.
A technique using an immiscible displacing fluid that wasdeveloped in the 1980s allowed small quantities of water
to be recovered, but the chemical was banned a few
years later under the Montreal protocol and no suitable
alternative has been found until now.
Novec has similar physical and chemical characteristics
to the banned chemical, but has zero ozone depletion
potential and a low global warming potential.
The research project was led by the late Professor Mike
Edmunds, an expert in groundwater quality, hydrogeochemical processes, trace element studies, isotopehydrology and palaeohydrology who taught on the
Masters in Science course in Water Science, Policy andManagement course at the University of Oxford.

Sustainability and Hand Hygiene
According to the World Health Organization (WHO) and
U.S. Centers for Disease Control (CDC), hand hygiene is
one of the most important ways to prevent the spreadof infections and thereby contributes significantly tokeeping patients safe. More than 1 million cases ofhealth care-associated infection exist at any given time;and experts say microbes that can cause infection
are most frequently spread between people throughcontact with unclean hands. We’ve come to the rescue,with 3M™ Avagard™ hand hygiene products that are
fast and easy to use. 3M was the first to introduce
a waterless, brushless surgical hand scrub designed
especially for health care workers. This not only helps
increase hand hygiene compliance, it also reduces water
usage and material waste. Now we’ve gone the extra
mile, making a hand soap that doesn’t contain triclosanand using plant-based ethanol to make hand hygiene
foams and gels more sustainable. We even earned the
USDA Certified Biobased Product Label on our foam
and gel products, verifying that the product’s amountof renewable biobased ingredients meets or exceeds
levels set by the agency. Sustainable patient safety. Thatcleans up nicely!

Published academic papers on both the use of 3M™
Novec™ HFE-7100 in the new extracting process andthe Badain Jaran desert study were co-authored by theprofessor.

Total Global Water Use by SourceFirst Year Savings Cumulative Totals (Tons)

2015 Water Source Absolute(Million cubic meters)

Total Water FromAll Other Sources

15%

Surface water,
total water use

20%

Public/Municipal water,
total water use

19%
Ground water,
total water use

46%

Small amounts included in total waterfrom all other sources

Total Salt Brackish Water Use (Absolute) 0%
Wastewater from another organization, total water use 0%
Rainwater collected directly and stored at facility,

3M 2016 Sustainability Report

Energy and Climate | 80

Global Challenges

Energy and Climate

Access to a dependable energy supply directly affects
all businesses and communities. Energy usage andclimate concerns require systematic change, andwe’re here to drive that forward.

3M has a history of proactive
leadership in addressing both
23-7, 11-19
31-34
the challenges and opportunities presented by climate change and energy
conservation. We operate under the philosophy thatearly action is paramount to being a leader in this space,and our programs and results prove our success.
G4

G4

4. A decades-long track record of improving
energy efficiency at our facilities
5. Serving our customers through a wide range
of innovative products that help them improveenergy efficiency and reduce their carbon
footprint

G4

EC EN EN

This proactive leadership can perhaps best be
understood through five areas of action:
1. Executive-level commitment to these important
topics and our related principles, commitments
and risk-mitigation planning efforts
2. Industry-leading efforts to reduce our own
greenhouse gas (GHG) emissions
3. Extensive public policy engagement on bothclimate change and energy conservation

Our Approach:
Guiding Principles
For all years of its existence the 3M Greenhouse Gas(GHG) inventory has been generated based on theprinciples of relevance, completeness, consistency,transparency, and accuracy. The GHG inventory has
been calculated from 2002 to the current year by the
3M Environmental Laboratory in accordance with theWorld Resources Institute (WRI)/World Business Council
for Sustainable Development (WBCSD) GHG Protocol
Corporate Greenhouse Gas Accounting and ReportingStandard. Additionally, since its promulgation, theinventory has been completed in accordance with theprinciples of the U.S. Environmental Protection Agency(EPA) Mandatory Reporting Rule (40 CFR 98). The 3M

3M 2016 Sustainability Report

Environmental Laboratory maintains an accreditation
to ANSI/ISO/IEC 17025 through A2LA, an ILAC
MRA signatory, for a number of laboratory methods.
Although it is not possible to put 3M’s GHG inventory
methodology on the lab’s scope of accreditation, ourcalculation methodology has been improved by working
under a number of the quality system elements required
by ANSI/ISO/IEC 17025. Some key quality systemelements that have helped improve 3M’s GHG inventory
include:•Defined responsibilities and interrelationships of
all key staff•

Documentation of key personnel qualifications•

Control over quality system documents andprocedures•

Control of records•

Corrective and preventive action system•

Internal audit program•

Documented and approved calculation
procedures.

These quality system elements coupled with third party
review of our emissions have ensured that 3M’s GHG
inventory is always in line with the five core principles
of relevance, completeness, consistency, transparency,
and accuracy.
Relevance – The 3M Environmental Lab’s GHG
inventory procedures clearly define our boundaries as
all GHG emissions from facilities over which 3M has
operational control. All GHG emissions from facilities
that are under 3M’s operational control are included in
our Scope 1 and 2 GHG inventory.
Completeness – All GHG emissions from facilities that
3M has operational control over are either calculatedwith the best data available or estimated with themost relevant estimation methods. Wherever possible
primary data is used to calculate our emissions, when
primary data is not available, we will use appropriate
estimations to calculate emissions. As such, because we
strive to calculate and report all GHG emissions we areresponsible for, our de minimis totals constitute less than
1% of the inventory.
Consistency – Every year of the GHG inventory is
calculated according to the same approved internal
procedures. Additionally, internal audits are performed

Energy and Climate | 81

every year to ensure that the GHG inventory is
calculated according to those procedures. Finally,
whenever a methodology change is implemented, 3M
will, wherever possible, recalculate prior year’s GHG
inventories to ensure that the GHG inventories arecomparable. Where it is not possible 3M will either callthis out or ensure that the difference is not material.
Transparency – 3M strives to present all GHG
inventory data in as transparent a manner as possible
while protecting confidential business information andcomplying with applicable regulations.
Accuracy – Every year, the accuracy of the numbers
as well as the calculations that led to those numbers isthoroughly audited by an internal audit process executedby auditors that are not involved in the calculation of
the GHG inventory. Final numbers are not released
until the internal audit has been successfully completed
and we are confident in our GHG emissions inventory.
Additionally, the 3M GHG inventory has been auditedby three separate 3rd party auditors; twice by EPA
Climate Leader’s preferred verifier, CH2M Hill, onceby Lucideon, an ANSI-accredited verifier, and onceby Bureau Veritas, a CDP verification partner. To date,no material findings have ever been found in our GHG
inventory results.

Executive-Level Commitment
Climate change and energy efficiency are issues ofgreat importance throughout 3M up to the Corporate
Operating Committee and CEO. Top-level executives
have empowered the Corporate EHS Committee to takeproactive steps and be responsible for all final decisions
on climate change and energy strategy. This includes
setting Company reduction goals and policies.
In addition, for climate change strategy and GHG
emission advice, the Corporate EHS Committee has
appointed the corporate Climate Change Steering Team.
Complementing the efforts of the Climate Change
Steering Team, 3M’s business continuity planning
process and our crisis management program review help
manage risks facing the Company’s physical operations
and supply chains (e.g., severe weather events).

3M 2016 Sustainability Report

To address the issue of climate change, 3M hascommitted to the following:

Energy and Climate | 82reflect current conditions. It also performs a tabletop or
actual crisis response exercise. 3M Corporate Auditing
and Corporate Security monitor facility compliance with
the Corporate Crisis Management Program.

•

Develop and maintain an inventory of our Scope 1
and 2 GHG emissions•

Continue to improve energy efficiency inmanufacturing and administrative operations,
including all aspects of direct and indirect use offossil fuels•

Manage GHG emissions to optimize reductions
and cost benefits•

As part of our 2025 Goals, increase renewableenergy to 25 percent of total electricity use

Reducing Our GHG Emissions•

Increase the use of energy efficiency products
within 3M operations and encourage their use by
3M suppliers and customers•

Incorporate an evaluation of environmental andenergy impacts throughout the full product life
cycle (from raw material acquisition throughmanufacturing, use and disposal) as part of theCompany’s Life Cycle Management assessment
process•

Invest in research and development to create
new products and technology that will reduce thegeneration and emissions of GHG

GHG emission reductions are achieved through avariety of methods at 3M and include, but are notlimited to, increasing the use of more sustainable raw
materials, improving process and equipment efficiency,
upgrading equipment, reducing our demand forenergy use, increasing our use of renewable energy,
and implementing and maintaining pollution control
technologies. All reduction efforts are integral to theCompany’s overall success and assist the Company
with the challenge of addressing climate change.
Further details regarding our GHG emission reduction
achievements can be found in the Goals and Progress
section that follows.

•

Develop partnerships and participate in a positive
dialogue with governmental agencies and otherorganizations engaged in tackling climate change

Risk-Mitigation Planning
Severe weather and long-term trends could
affect 3M’s operations and supply chain. To
2address these and other risks, 3M hasdeveloped and maintains a systematic BusinessContinuity and Planning Process and Crisis Management
Program. To implement this process and respond to
specific incidents, 3M’s Corporate Crisis Management
Program coordinates efforts of local crisis management
teams maintained at each 3M facility and international
subsidiary.
G4EC

Corporate and local plans take into account natural
disaster, infectious disease, employee safety, protectionof assets, customer service and other business
continuity requirements that may impact specificfacilities and businesses. Every year, each local crisis
management team must review and update its plan to

3M mitigates supply chain risks through a variety ofmanagement practices, including multi-sourcing raw
materials, pre-qualification of potential outsource
manufacturers, maintaining appropriate stocks of raw
materials and contingency plans with key suppliers toensure allocation to 3M in the event of supply disruption.

Public Policy Engagement
3M is actively engaged in public policy development
to address climate change. One such important direct
engagement is with the National Climate Coalition(NCC). 3M is a founding member of NCC, an organization committed to dialogue and policy developmentwith decision-makers in the EPA and many stateagencies throughout the U.S.

Environmental Investments
3M’s manufacturing operations are affected bynational, state and local environmental laws
31
around the world. 3M has made, and plans tocontinue making, necessary expenditures forcompliance with applicable laws. 3M is also involved in
remediation actions relating to environmental mattersfrom past operations at certain sites.
G4EN3M 2016 Sustainability Report

Environmental Management System (EMS) frameworkprovides structure and consistency for overseeing
daily activities and shifting the environmental focus
from reactive to proactive. Implementation of our EMS
continues to increase throughout the world and realize
reduced costs through operating efficiency, improved
environmental compliance, reduced monitoring costs,
reduced energy and waste disposal costs, and increased
employee activity. 3M's EMS is also expanding oursustainability image around the globe, which has strong
financial benefits.
Our approach calls for each site to establish, implement,
and maintain documented environmental objectives
and targets at relevant functions and levels within theorganization. When establishing an EMS plan, eachsite is called on to consider financial, technological,
operational, and business considerations. The objectives
and targets should be measurable and consistent with
our environmental policy, including our commitments
to prevent pollution and be compliant with applicableregulations and other requirements to which
we subscribe.
In 2015, 3M expended about $26 million for capitalprojects related to protecting the environment. This
amount excludes expenditures for remediation actions
relating to existing matters by past operations that do
not contribute to current or future revenues, which
are expensed. Capital expenditures for environmental
purposes have included pollution control devices –such as wastewater treatment plant improvements,
scrubbers, containment structures, solvent recovery
units and thermal oxidizers – at new and existing
facilities constructed or upgraded in the normal courseof business. Consistent with the Company’s policies
emphasizing environmental responsibility, capital
expenditures (other than for remediation projects) for
known projects are presently expected to be about $51
million over the next two years for new or expanded
programs to build facilities or modify manufacturing
processes to minimize waste and reduce emissions.
While the Company cannot predict with the certainty
the future costs of such cleanup activities, capital
expenditures or operating cost for environmental
compliance, the Company does not believe they will
have a material effect on its capital expenditures,
earnings, or competitive position.

Energy and Climate | 83

Environmental Violations and Liabilities
Since 2010, all 3M facilities globally are
required to internally report environmental
34
exceedances, spills, agency notices and fines
through one dedicated system - 3M's Worldwide
Incident Management System (WIMS). WIMS has led tocontinuous improvement related to increased awarenessof responsibilities, understanding of the holistic system
and more consistent reporting requirements for 3M’s
200+ global operations. Further, our international
auditing program is firmly in place and helps reduce
various compliance risks. Each of our facilities areaudited at least once every three years, and they areaudited more frequently if they are determined to be ofhigh risk.
G4EN

As of December 31, 2015, we recorded liabilities of $43
million for estimated “environmental remediation” costs
based upon an evaluation of currently available facts
with respect to each individual site and also recorded
related insurance receivables of $11 million. 3M records
liabilities for remediation costs on an undiscounted
basis when they are probable and reasonably
estimable, generally no later than the completion offeasibility studies or 3M’s commitment to a plan ofaction. Liabilities for estimated costs of environmental
remediation, depending on the site, are based primarily
upon internal or third-party environmental studies,and estimates as to the number, participation level andfinancial viability of any other potentially responsible
parties, the extent of the contamination and the natureof required remedial actions. 3M adjusts recorded
liabilities as further information develops or circumstances change. We expect that it will pay the amounts
recorded over the periods of remediation for theapplicable sites, currently ranging up to 20 years.
In 2015, 3M recorded liabilities of $35 million for“other environmental liabilities” based upon an
evaluation of currently available facts to implement
the Settlement Agreement and Consent Order with
the Minnesota Pollution Control Agency, the remedialaction agreement with Alabama Department ofEnvironmental Management, and to address trace
amounts of perfluorinated compounds in drinking water
sources in the City of Oakdale, Minnesota, as well as
presence in the soil and groundwater at the Company’s
manufacturing facilities in Decatur, Alabama, andCottage Grove, Minnesota, and at two former disposal

3M 2016 Sustainability Reportsites in Washington County, Minnesota (Oakdale andWoodbury). 3M expects that most of the spending will
occur over the next four years. As of December 31,
2015, 3M’s receivable for insurance recoveries related to“other environmental liabilities” was $15 million.
It is difficult to estimate the cost of environmental
compliance and remediation given the uncertainties
regarding the interpretation and enforcement ofapplicable environmental laws and regulations, theextent of environmental contamination and the existenceof alternative cleanup methods. Developments may
occur that could affect 3M’s current assessment,
including, but not limited to: (i) changes in theinformation available regarding the environmental
impact of 3M’s operations and products; (ii) changes inenvironmental regulations, changes in permissiblelevels of specific compounds in drinking water sources,or changes in enforcement theories and policies,
including efforts to recover natural resource damages;(iii) new and evolving analytical and remediation
techniques; (iv) success in allocating liability to otherpotentially responsible parties; and (v) the financial
viability of other potentially responsible parties andthird-party indemnitors.
Improving Our Energy Efficiency
3M has identified a broad approach to managing ourenergy footprint, which includes evaluating the energy
impact of new products and manufacturing processes
being developed in our laboratories; new equipment andfacilities being designed and built by our engineering
staff; and reducing the energy footprint of ourmanufacturing and administrative facilities. In addition,
3M actively shares information about the energy
management program with external stakeholders,such as suppliers, customers and other interested
organizations.
At 3M, energy management extends beyond energy‑­
efficiency efforts in factories and buildings. It is a teameffort guided by the global Corporate Energy Policy.
Energy management responsibilities are coordinated by
the Corporate Energy Management team, with oversightby 3M’s Corporate Energy Manager and Engineering
Vice President and with active support from the CEO.
The team involves personnel from environmental
operations, facility operations, finance, sourcing,engineering, energy management, corporate marketing

Energy and Climate | 84

and public affairs. Each department provides cross-functional contributions, ensuring that:•

Energy-efficient technologies are being used andopportunities are being identified in the design
process.

•

Renewable energy opportunities are identified
and financed.

•

Data is tracked routinely and consistently byfacilities.

Innovative GHG-Sustainability Products for
our Customers
Many products we bring to market help our customers
reduce their GHG emissions. Additionally, 3M conducts
product carbon footprint evaluations as part of the
product Life Cycle Assessment process on selectproducts and is engaged with key stakeholders to
improve and refine common metrics for such analysis.
One of the challenges in this area is the wide range ofpotential approaches and assumptions being used forsuch calculations. To address these issues, 3M supports
further development of common metrics and is working
with the World Resource Institute and World BusinessCouncil for Sustainable Development, peer companies,
governments and environmental organizations. The goalof these efforts is to enable 3M and others to provide
cost-effective, accurate and useful information tocustomers and other stakeholders.
For additional information about how 3M is tacklingclimate change, visit www.3M.com/Sustainability.

Direct Greenhouse Gas Emissions(Scope 1)
Because overall 3M sales have been reduced asa result of global currency conversions and15
accounting issues, it is impacting our numbers.
Fortunately, emissions are dropping and we are hitting
our internal milestones and goals.
G4

EN

Since 2002, 3M has reduced Scope 1 GHG emission
by 77.5%, and it has provided a direct and immediate
benefit to the environment. This reduction is evenmore impressive when one considers it is an absolute
reduction (e.g., it occurred even as the Company grewsales and production during this timeframe).

3M 2016 Sustainability Report

3M’s 2015 Scope 1 emissions are 3,770,000 metrictons CO2e. This is a 14.1% reduction compared against
4,390,000 metric tons CO2e for 2014. The total GHG
Inventory encompasses the company’s diversity andcomplexity. A total of approximately 600 facilities
including R&D, manufacturing, distribution centers, andadministrative support offices within 3M operational
control are accounted for in the current inventory. The
total inventory includes both Kyoto and Non-Kyoto
classified gases. 3M tracks and reports both absoluteand indexed to net sales emission data.
GHG emissions data for 2012-2015 used US EPA
mandatory greenhouse gas reporting rule (GHG-MRR)/
Intergovernmental Panel on Climate Change (IPCC) 5th
assessment report (AR5) based accounting methods
and are not directly comparable to 2003-2011 GHG
emissions data, which used WRI/IPCC 3rd and 4th
assessment report (TAR, AR4) based GHG accounting
methods. The 2012-2015 GHG Inventories are directlycomparable. The 2002 emissions inventory wasrecalculated using US EPA GHG-MRR/IPCC AR5
methodology to allow direct comparison.

Indirect Greenhouse Gas Emissions(Scope 2)
When we think about our customers, partners,
and communities, and our mutual challenges
16
and needs, we see a shared opportunity. In
addition to environmental challenges, we recognize theconnectedness of social challenges that we face inpursuing a better world. Our ambition, working collaboratively, is to realize a world where every life is improved– where natural resources are reliably available, people
everywhere have access to education and opportunity,and communities are safe, healthy, connected
and thriving.
G4

EN

In 2015, we negotiated a 120MW wind power purchaseagreement with Invenergy. Invenergy will provide 3Mwith renewable energy to help support our operations
across North America. The agreement includes the saleof wind energy from the Gunsight Wind Energy Center
located in Texas. Energy from the 120 MW project will
be delivered into the Electric Reliability Council of Texas(ERCOT) regional electricity grid. This agreement is an
important and significant step toward accomplishingour company goal of increasing renewable energy to 25
percent of our total electricity use by 2025.

Energy and Climate | 85

3M’s 2015 Scope 2 emissions are 1,860,000 metrictons CO2e. This is a 17.2% reduction compared against
2,240,000 metric tons CO2e for 2014. 3M continues tobe a leader in achieving greenhouse gas (GHG) emission
reductions.
3M believes it is paramount that our industry-leading
GHG emission reductions achieved to date are duly
taken into consideration when evaluating the statusof our current GHG reduction goal planning efforts.
These reductions have occurred through the hard work
necessary to conserve energy, reformulate products,
and control high global warming potential emissions.
We believe that nearly every other company would liketo emulate 3M in regard to their own GHG emission
reduction achievements. Other companies are setting
goals to move closer to the achievements we havealready realized.

Better Tracking of GHG Emissions From
Our Suppliers and Customers (Scope 3)
3M has been developing our Scope 3 GHG
emissions inventory since the publishing of17
the WRI/WBCSD GHG Protocol Corporate
Value Chain (Scope 3) Accounting and ReportingStandard in October 2011. 3M places a high value onsound science and decision-making, so data reported isin accordance to the Standard. When the complexity ofthe supply chain does not allow for direct calculation,
an input‌/‌output model calculation method is used.
For Categories 1 (Purchased Goods and Services) and 2(Capital Goods), a new model was utilized, based on
characteristics of the economy in 2014. The new model
reflects the improved carbon intensity, or emissions per
dollar, of the economy. Since previous emissions forthese categories were based on the model available atthe time (based on 2002 economic data), 2015 data is
not directly comparable to past years.
G4EN

3M has expanded our Scope 3 inventory this year byadding emission estimates for Categories 5, waste
generated in operations (see table). Categories 9, 10,
11, and 12 (related to emissions associated with soldproducts) remain very challenging for us, due to thenumber and complexity of products we sell, and thediversity of their uses by businesses and consumers
across the globe. Many of our approximately 55,000
product lines are “intermediates” with many potential
downstream applications, each with a different GHG

3M 2016 Sustainability Reportemissions profile, making it impossible to reasonably
estimate the downstream emissions associated with thevarious end uses of our intermediate products.
However, we do offer many products that reduce GHG
emissions for our customers – these are detailed in
our Climate Change Solutions Catalog. In 2015 alone,about 14 million metric tons of CO2 equivalents were
avoided for our customers through use of various 3M
product platforms as calculated in accordance with the
WRI/WBCSD GHG Protocol Project Standard. We arein the process of estimating GHG emission reductions
for other Climate Change Solution products, as well as
evaluating the emissions impact for the few 3M productsthat use energy.
With the introduction of Business Transformation to
3M, our systems are becoming more unified, and this isproviding us with better data to more accurately judge
and make decisions. It is also helping us create real,consistent changes throughout our global operations.
We expect Business Transformation to help drive ourefforts to reduce all GHG emissions, including Scope 3
GHG emissions.

Setting Energy Performance Goals
and Evaluating Progress
As previously noted, 3M has a long history insetting and achieving energy conservation
18
goals. In 2010 as part of our 2015 Sustainability
Goals, 3M set a global goal to increase energy efficiency
by 25 percent by 2015 from a 2005 base year. Finally,energy efficiency and increasing our renewable energy
use are key parts of our 2025 Sustainability Goals.
G4EN

We also identified areas of focus that will make a
step-change in the energy and carbon intensity of ouroperations. The implementation of combined heat andpower systems and heat recovery systems at certain
3M locations has a large potential to improve efficiency
and reduce carbon emissions. The implementation ofadvanced energy information systems in our manufacturing facilities is expected to give operations personnel
information they can use to more effectively manage
energy use.
To meet global goals, 3M reviews its Strategic Energy
Management Plan annually to prioritize programs.
Longer-term action items are added periodically to

Energy and Climate | 86

achieve greater efficiency. The plan uses input fromstakeholders, including manufacturing directors,
plant managers, operations employees and executive
management. The plan aims to continuously improve
results; leverage engineering expertise and advances;drive plant-level efficiency improvements; maintain top
management support; and protect 3M.

Total Energy Use
3M is a diversified technology company,
providing innovative solutions that advance
3-7
companies and improve people’s lives
worldwide. We strategically manage energy use
throughout our global operations by setting aggressive
goals and tracking results.
G4

EN

We are happy to announce that we successfully
achieved our 2015 energy conservation goal of areduction of 25% by 2015 from a 2005 baseline(indexed to net sales). Because net sales have not been
as strong in 2015, this is partially impacting our energy
numbers and not accurately reflecting the numerous
improvements 3M has made in the area of energy
conservation.
Our 2025 energy conservation goal is to improveenergy efficiency indexed to net sales by 30%. Energy
efficiency improvements will address rising energyuse, costs and climate impacts. Building on our 50%
improvement in energy efficiency between 2000 and2015, a 30% energy efficiency improvement will keep
our global energy use nearly flat over the next 10 years,
as the Company grows. Specifically, our external energy
reduction goal is a reduction of 30% indexed to net
sales and our internal energy reduction goal is a 30%
reduction indexed to output.
We have also undertaken a 2025 goal to increase
renewable energy to 25% of total electricity use. Nearly
800,000 MWh of renewable energy use will be added
globally. The primary sources of renewable energy will
be wind and solar.

3M 2016 Sustainability Report

Energy and Climate | 87

Total Energy Use(MMBtus)

Total Energy Use(MMBtus)
2015
2014
2013
2012
2011
0

3,000,000

Total Energy Use

6,000,000

9,000,000

12,000,000

15,000,000

18,000,000

21,000,000

24,000,000

27,000,000

30,000,000

2011

2012

2013

2014

2015

26,600,000

27,700,000

28,700,000

29,100,000

28,100,000

Total Indexed Energy Usage(MMBtu / Million USD Net Sales)

Total Indexed Energy Usage(MMBtu / Million USD Net Sales)
2015
2014
2013
2012
2011
900

Total Indexed Energy

910

920

930

940

2011

2012

2013

2014

2015

902

931

930

912

929

3M 2016 Sustainability Report

We are a Challenge Partner in the US Dept. ofEnergy Better Buildings, Better Plants Program(BBBP). Its goal is to make commercial andindustrial buildings 20% more efficient by
2020, save more than $40 billion annually for
US organizations, and create American jobs. As
a partner of the BBBP, 3M has committed 94
plants to reduce energy use an additional 25%
throughout 37 million square feet of building
space. Through the BBBP, 3M will maintain afocus on transparency around a capital set aside
for energy efficiency projects and highlight aninnovative recognition program that rewards top
performing plants. We are also still partners with
Energy Star™ and their commitment to overall
energy management.

Energy and Climate | 88

3M collects and analyzes energy-use data and energy
efficiency project metrics to: track progress toward
corporate energy and greenhouse gas goals; identify
opportunities for improvement, benchmark against
past performance, and identify best practices that canbe applied across global operations. All manufacturinglocations and other locations greater than 2800
square meters report energy use and energy costs
monthly into an electronic reporting system. Data isanalyzed at the facility, division, business unit, regional,
country and corporate levels quarterly as part of 3M’s
EHS Management System Scorecard and Energy
Management Dashboard previously described.
Energy efficiency is a social responsibility and acompetitive advantage for 3M. Managing our energy
footprint reduces operating costs, reduces environmental impact and addresses stakeholder interests insolutions with environmental and energy advantages.

In 2015, the 3M London Facility in Canada received
an EHS achievement award for coordinating eightenergy audits and over 40 conservation projects toachieve substantial benefits in energy efficiency andconservation. 3M Science. Applied to Life.™ projects
are working toward improving and inventing materials
and innovations that will benefit and preserve theenvironment, and our commitment to energy efficiency
is exemplified by our EPA Green Power Partnership andthe Innovation Center Gold LEED Certification awarded
to 3M Spain.
We presently have 20 sites certified to the energy
standard ISO 50001. Two of our sites have undergone apilot project with sponsorship from the U.S. Departmentof Energy. In 2015, we have 5 U.S. locations undergoingthe certification process as a group of cohorts and3 others working individually.
We are also undergoing the process of becoming
certified at the enterprise level, which is a unique andexciting opportunity. It speaks to our commitment toenergy management. The difference with this certification as compared to individual certifications is thatit instills a management aspect to the issue of energy
reduction as opposed to just focusing on projects in andof themselves. It will allow top management to review
decisions on a quarterly basis and go beyond energy
projects into continual energy managing behaviors.

Investing in Renewable Energy
3M continues to evaluate, invest in andincorporate on-site renewable energy sources
within our own operations where feasible
while continuing to expand and collaborate
with external partners. We estimate thatapproximately 0.5 percent of 3M energy used
today is from renewable sources generated
on-site in our own operations. We also partnerwith utility providers that incorporate renewableenergy into their own operations, who thereby
pass those benefits onto their customers,
including 3M.

3M’s Environmental Assessment Process
3M has been completing an environmental
assessment process at most locations over the
11-13
past 3 years with the goal of identifying
potential historical liabilities. As a result of theseassessments, biodiverse areas may be identified. Where
applicable, a public database search is completed, which
includes a wetland database. Site visits also identify
areas such as rivers, creeks and potential wetlands thatare on or near the facility.
G4EN3M 2016 Sustainability Report

Goals and Results
Our 2025 GHG emissions goal aims to ensurethat GHG emissions are at least 50% below our192002 baseline while still growing our business.
3M is in a leadership position due to our early actions to
reduce our greenhouse gas emissions more than 10
years ago. Between 2002 and 2015, we voluntarily
achieved a 69.3% absolute reduction in greenhouse gas
emissions. We are committed to continuing thatleadership for another 10 years, even as we grow thecompany in order to help our customers address theissue of climate change.
G4EN

3M has also committed to a 2025 goal to help ourcustomers reduce their GHGs by 250 metric tonsof CO2 equivalent emissions through use of 3M
products. While 3M has made significant GHG emission
reductions across our global operations, we realize
we can make far greater contributions by helping ourcustomers reduce their GHG emissions through theuse of our products. In 2015 alone, about 14 million
metric tons of CO2 were avoided for our customers
through use of 3M product platforms. According to the
EPA Greenhouse Gas Equivalencies Calculator this isequivalent to the annual emissions of more than 2.95
million passenger vehicles driven for one year.

Energy and Climate | 89

Energy Highlights•

3M implemented over 400 energy efficiency
projects globally in 2015.

•

We formed partnerships to develop
novel solutions for transportation, IT andelectronics.

•

We leveraged grants to advance CO2
recycling, fuel system, battery and solar
technologies.

•

We maintained the Global Energy Data
Validation and Utility Review to identify
savings within facilities, emphasizing theimportance of engaging with supporting
utilities to understand and verify data
accuracy.

•

3M received recognition from the U.S.
Department of Energy for achieving its energy
efficiency goal established through the Better
Buildings Challenge.

•

We achieved ISO 50001 certification at 20
sites, and pursuing certification at 8 additionalsites.

3M 2016 Sustainability Report

Energy and Climate | 90

Top innovation award for 3M ACCR

StoriesInnovative new coating for solar panels
lets in more light
A unique antireflective coating has been developed by
3M and Ducatt to give solar panels a further sustainability edge. The coating works by enabling more light toreach the solar cells, increasing the electricity output ofthe panels by between three and five per cent.
Unlike existing antireflection coatings that use solvents
that can harm the environment, the new coating iswater-based so no air-polluting elements are released by
the coating either during manufacturing or fitting.

A high-energy approach to lowering
energy use.
3M facilities around the world are committed toreducing the company’s environmental footprint byconserving energy. One shining example is the 3M Oral
Care facility in Seefeld, Germany, which found ways toimprove energy efficiency by 7.5%.
In May, 2015, the Seefeld site was awarded its fifth 3M
Platinum Energy Award, in recognition of exceptional
teamwork on several fronts. The Seefeld team:•

Improved energy efficiency by 7.5%.

•

Implemented savings projects accounting for5.4% of their total energy spend.

•

Successfully met the requirements of the ISO
50001 energy management standard

In addition, the use of spring water for cooling at the
Seefeld site has resulted in a CO2- neutral impact as wellas electricity savings.

The UK’s largest electricity transmission network
operator, in partnership with 3M and the Universityof Manchester, received a top innovation prize for its
pioneering work on overhead line conductors using 3M
ACCR (Aluminum Conductor Composite Reinforced)
to improve the efficiency of existing high-voltage
transmission infrastructure.
3M ACCR lightweight, high temperature, low-sag
overhead line conductors are used to replace existing
electrical conductors and double the transmission
capacity of the line without the need to build new
infrastructure. This removes bottlenecks in the systemand can also connect other energy sources, such as
electricity generated by windfarms, to the grid.
The 3M solution is also quieter as the unique
aluminum-based material and surface finish of ACCR
reduces the corona discharge associated with standard
conductors when they are wet or damp, which gives off
a fizzing noise.

3M 2016 Sustainability Report

Energy and Climate | 91

2002-2015
Reductions Indexed to Net Sales
2002-2015 Reductions in Absolute GHG
Emissions
18

20%
New
Methodology

0%14
Scope 1 Direct(Million MT CO2e)

Scope 2 Indirect(Million MT CO2e)

Total Emission% Reduction vs 2002

Total Emission% Reduction vs 2002 Revision

-20%

9

-40%

5
-60%

-80%

0
2002**

2003

2004

2005

Total
(Million MT CO2e)

2006

2007

2008

2009

2010

2011

2012*

2013*

2014*

2015*

2002 Revision Total(Million MT CO2e)
2002**

2003

2004

2005

2006

2007

2008

2009

2010

2011

Total
(Million MT C02e)

17.80017.90013.50011.80010.400

8.400

6.740

5.010

6.230

6.090

2002 Revision Total(Million MT C02e)

18.300

Scope 2 Indirect(Million MT C02e)

1.570

1.580

1.640

1.700

1.680

1.670

1.630

1.720

1.940

Scope 1 Direct(Million MT C02e)

16.20016.30011.80010.100

8.750

6.730

5.110

3.290

4.280

Total Emission %Reduction vs 2002 Revision0%

Total Emission % Reduction vs 2002

0%

0.25%

-25%

-34%

-42%

-53%

-62%

-72%

-65%

2012*

2013*

2014*

2015*

6.620

7.950

6.630

5.630

2.030

2.250

2.360

2.240

1.860

4.060

4.370

5.590

4.390

3.770

-64%

-57%

-64%

-69%

-66%

*2012-2015 US EPA GHG-MRR/IPCC AR5 based inventory accounting is not directly comparable to 2002-2011 WRI/IPCC TAR, AR4 based GHG accounting.
**2002 Inventory recalculated according to US EPA GHG-MRR/IPCC AR5 methodology (2.7% Increase over original reported value).

3M 2016 Sustainability Report

Energy and Climate | 92
2002-2015 Reductions Indexed to Net Sales

2002-2015 GHG Emissions Reductions Indexed to Net Sales
1,200

0%
New
Methodology

900-0.23%
Global Scope 1 MT
CO2e/$ MM Net Sales

Global Scope 2 MT
CO2e/$ MM Net Sales

Global Total % Reduction MT
CO2e/$ MM Net Sales vs 2002

Global Total % Reduction MT
CO2e/$ MM Net Sales vs 2002 Revision

600-0.45%

300-0.68%

0-0.90%
2002**

2003

2004

2005

2006

2007

Global Total MT C02e/$ MM Net Sales

2009

2010

2011

2012*

2013*

2014*

2015*

Global Total MT CO2e/$ MM Net Sales (recalculated)

Global Total MT CO2e/$ MM Net Sales
2002**

2008

2003

2004

2005

2006

2007

2008

2009

2010

2011

981

673

559

455

343

266

217

233

206

2012*

2013*

2014*

2015*

221

258

208

186

Global Total MT C02e/$ MM Net
Sales (Recalculated)

1,122

Global Scope 2 MT C02e/ $ MM Net
Sales

96

86

82

80

73

68

64

74

73

69

75

76

70

61

Global Scope 1 MT C02e/ $ MM Net
Sales

992

894

591

479

382

275

202

142

161

137

146

181

138

125

Global Total % reduction MT C02e/ $MM Net Sales vs 2002 (Recalculated)

0%

-80%

-76%

-81%

-83%

Global Total % reduction MT C02e/ $MM Net Sales vs 2002

0%

-10%

-38%

-49%

-58%

-69%

-76%

-80%

-79%

-81%

*2012-2015 US EPA GHG-MRR/IPCC AR5 based inventory accounting is not directly comparable to 2002-2011 WRI/IPCC TAR, AR4 based GHG accounting.
**2002 Inventory recalculated according to US EPA GHG-MRR/IPCC AR5 methodology (2.7% Increase in absolute emissions over original reported value).

3M 2016 Sustainability Report

Energy and Climate | 93

3M Scope 3 - Greenhouse Gas Emissions
Upstream, Leased Assets

Scope 3 Category

Metric Tons of CO2e
2011

2012

2013

Boundary

2014

2015

8,330,000

6,860,000

3M Operational Control

812,000

577,000

3M Operational Control

551,000

621,000

3M Operational Control

Upstream Emissions
7,620,000
1

8,160,000

8,360,000

Purchased Goods and Services
From Climate Earth using Input/Output Model based on 3M spend

498,000
2

584,000

647,000

Capital Goods
From Climate Earth using Input/Output Model based on 3M spend

Partially included in Scope 1 and Scope 2
3

Fuel and Energy Related Activities (notincluding scope 1 or scope 2 emissions)emissions reporting

Emissions from transmission and distribution losses (Category 3c) are included in Scope 2 inventory.

Not Evaluated4

Upstream transportation and distribution

1,510,000

1,230,000

995,000

780,000

3M Operational Control

Emissions disclosed in previous years were miscategorized as Category 9. Data does not include emissions from transportation of raw
materials from suppliers.

Insufficient data
5254,000

3M Operational Control

Waste generated in operations
Environmental Lab calculated from 3M primary data on waste by facility size or number of employees

Not Evaluated6

58,60056,90061,10055,800

3M Operational Control

358,000

356,000

3M Operational Control

Business Travel
Environmental Lab calculated from 3M primary data on business travel

Not Evaluated7352,000

353,000

Employee commuting
From Climate Earth using Input/Output Model based on 3M employee population

Included in Scope 1 or Scope 2 emissions reporting
8

3M Operational Control

Upstream, leased Assets
These emissions are included in Scope 1 & 2, because they are all under 3M Operational Control

TOTAL Upstream

8,120,000

10,700,000

10,600,000

11,100,000

9,500,000

Net GHG emissions based on the categories evaluatedNote: Net GHG emissions based on the categories evaluated. Due to change in boundaries, Scope 3 Upstream emissions should not be compared on a year-on-year basis.

3M 2016 Sustainability Report

Energy and Climate | 94

3M Scope 3 - Greenhouse Gas Emissions
Total Downstream

Scope 3 Category

Metric Tons of CO2e
2011

2012

2013

2014

Boundary

2015

Downstream Emissions
9

Downstream transportation anddistribution

10

Processing of sold products

11

Use of sold products

12

End of life treatment of sold products

13

Downstream leased assets

Most of 3M’s 60,000+ products are intermediates with many potential end uses. According
to the GHG Protocol Scope 3 Calculation Guidance, a company that produces intermediate

Not Evaluated - see comments

products with many potential downstream applications, each with a potentially different GHG
emissions profile, cannot reasonably estimate the downstream emissions associated with thevarious end uses of the intermediate products.

Not EvaluatedIncluded in Scope 1 or Scope 2 emissions reporting <1,000

3M Operational Control

Prior to RY2015, 3M reported facilities leased to 3rd parties under Scope 1 and 2.

Not Evaluated
14

0

0

0

0

3M Financial Control

0

0

0

3M Financial Control

-

N/A

N/A

Franchises
No franchises under 3M financial control

Not Evaluated15

0

Investments
No investments under 3M financial control

TOTAL Downstream--

All downstream categories either don’t apply or are de minimis

NOTES
1

The data reported is in accordance to the World Resources Institute (WRI)/ World Business Council for Sustainable Development (WBCSD) Corporate Value Chain (Scope 3) Accounting andReporting Standard.

2

An input/output model calculation methodology based on spend by commodity was used in collaboration with Climate Earth for categories 1 and 2, and based on employee headcount by
country for category 7.

3

A third party audit of the input/output model data in accordance to the WRI/WBCSD Corporate Value Chain (Scope 3) standard was conducted in 2013 to determine the quality of the datareported and the reliability of the calculation method. The model hasn’t materially changed since this audit.

4

Estimated Scope 3 data uncertainty is ±50% (WRI/WBCSD, GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard, 2011)

5

Values listed in the table above have been rounded to three significant figures. All calculations on the tabulated data use the full precision of the number.

3M 2016 Sustainability Report

Health and Safety | 95

Global Challenges

Health and Safety

Creative innovation, technology, education andcollaboration are all critical if we are to tackle thehuman health and workplace safety concerns of today— for the sake of tomorrow.

Health and safety issues are prevalent, and concerns are
growing to ensure safe and healthy workplaces aroundthe world.
Governments, corporations and consumers are driving
global demand for safety, protection, healthcare andfood safety solutions. Food poisoning and water-borne
illnesses lead to the deaths of 3 million people acrossthe globe each year. At the same time, approximately
one of every 20 hospitalized patients in low- and middleincome countries will contract an infection while under
medical care.

We are always taking steps to protect our mostimportant asset – 3M employees. Our innovations are
only possible with the minds, talent and commitmentof all of our employees worldwide. So, we put a lot ofthought and effort into keeping them safe and healthy.
Our robust Safety and Health Policy applies to all 3M
operations worldwide, including new acquisitions. It
is based on our core business values and stems from
our Environmental, Health and Safety (EHS) vision for“Safe and Healthy People, Products and Planet.” It holds
anyone working at or visiting a 3M location to strict
safety and health requirements.
Our 2025 goal is to provide training to 5 million workers
across the globe on worker and patient safety. Properuse of health and safety products is critical to infection
prevention, personal safety and overall health. Building
on our existing customer education program, we seek tohelp educate individuals on worker and patient safety inboth healthcare and industrial settings.

3M 2016 Sustainability Report

Research shows that core body temperaturedrops rapidly following the induction of generalanesthesia, which puts patients at an increased
risk for unintended hypothermia, leading tohigher mortality rates, longer hospital stays
and an increased rate of wound infection.
3M™ Patient Warming units are revolutionary
forced-air warming systems that help toprevent and treat hypothermia while enhancing
patient comfort.

Approach

Health and Safety | 96

100 percent conformance to six critical GSHP standards
related to risk management of high-hazard activities:•

Safety and Health Hazard Recognition and Risk
Assessment•

Incident and Potential Hazard Reporting, Record
Keeping, Investigation and Follow-up•

Powered Industrial Vehicles•

Machine Guarding•

Work at Height•

Process Hazard Analysis

Employee Health and Safety
The safety of our employees at 3M is ourhighest priority. We take every possible step to6
actively monitor, measure, and improve leading
indicators of performance while simultaneously growing
the company. As a result of our efforts, lagging
indicators such as worldwide recordable and lost time
rates since 2006 has decreased 46% for 3M global
employees.
G4

In 1996, a Global Safety & Health Plan (GSHP) tool
was initiated for all 3M locations worldwide. It utilizes
a well-developed self-assessment process that iscategorized into multiple elements addressing various
areas and standards related to safety and health.
3M utilizes a variety of tools to manage risks fromhazards in the workplace. We’ve used specialized
tools successfully for a number of years in the areas ofIndustrial Hygiene, Ergonomics and Process Safety. Eachof these disciplines uses a risk management approachto categorize hazard levels and define appropriate levelsof control.
Recognizing the need to further minimize the rates offatalities and serious injuries (FSI), 3M has been engaged
in the development of a practical new approach tobetter managing hazards that have the potential to resultin fatalities or serious life-altering injuries.
The new approach was implemented in 2013, andincludes development of an inventory of FSI precursors— a list of high-hazard activities, operations andsituations that have the potential to result in a fatality
or life-altering injury. These potential hazards are taken
through the risk assessment and reduction process alongwith all near misses and incidents.
A five-year objective to achieve risk reduction related
to high-hazard activities was launched in 2014. The goalfor Safety and Health in 3M is for all sites to achieveLA

We also place a lot of emphasis on record-keeping,training FAQs in our newsletters, and providing
examples. We visit sites and perform audits on recordkeeping practices, and we review all incident data
along with the quality of the investigation, contributing
causal factors, and an analysis of corrective actions
implemented.
Every year, we implement incremental upgrades tovarious elements of our Global Safety and Health Plan.
By analyzing our audits and various self-assessments,
we are able to create continual improvements. 3M is oneof the only companies with a Global Safety and HealthPlan that performs self-assessments, and this has been agreat calibration for our audits.
Utilizing our Risk Assessment Prioritization (RAP)
tools, sites must identify activities that they consider“high-hazard,” and focus on how these activities are
impacting lost time cases. We expect to see a dropin severe cases into the future because of our focus
on “high hazards.” Since 2013, we have documented
approximately 17,000 assessments, and thesemeasurements are helping us lower severe injury rates
in the future.

3M 2016 Sustainability Report

Health and Safety | 97

Over 90 percent of our sites have people with formal
RAP training, and this is a significant increase over past
years. Furthermore, in 2015, we put a huge effort into
providing training sessions for our auditors. We now
place senior auditors with junior auditors to improvetheir knowledge and overall skillset. Auditor training
has become integrated into our employee competency
development programs. In 2015, 60 global audits werecompleted at 3M manufacturing facilities.

Rates (EMR), and safety program information suchas training and activity levels of safety committees.
Prior to commencing actual work, formal pre-construction safety reviews are conducted to address
potential hazards and controls related to the scope ofwork. Monitoring of safety performance is frequently
conducted throughout the contract term. An assessmentof safety performance is conducted at the conclusion of
the contract.

Our auditing program has become more developed andglobal than ever, and the mix of internal and external
auditors provides us with a chance to benchmark ourown best practices and create real, substantive changes.
Our global auditing program is minimizing variationfrom country-to-country and getting everyone on thesame page.

Our Contractor Safety Standard allows our Corporate
Safety Group to align our Contractor Standards with our
Global Safety and Health Plan. Each location has a Site
Contract Coordinator. This person is designated for eachlocation to be the main contact for contractor safety.
They have the ability to deal with pre-bid meetings andpre-qualifications for contractors. The Site Contract
Coordinator is on-site for daily meetings and safety
reviews to ensure proper behavior, training, and weekly
inspections.

In 2015, we changed our focus to a layers of protection
analysis. This form of analysis, along with our risk
assessments and prioritization tools, has driven down
fatalities and serious injuries. We’re heavily focused on
not only preventing fatalities but serious injuries as well.
Our tools have been so successful that numerous peer
companies are looking to 3M and our health and safety
leaders to help advise them on how to improve healthand safety. 3M leaders have been invited to speak atnumerous international conferences around the globe on
their methods.

Contractor Health and Safety
3M has a long history of ensuring its Global Safety and
Health commitment to all employees. Our Safety and
Health Policy applies to all 3M operations, including
new acquisitions. It is based on our core business values
and stems from our Environmental, Health and Safety(EHS) vision for “Safe and Healthy People, Products
and Planet.”
All visitors, vendors, and contract workers at 3M
locations are held to the same safety and healthrequirements as 3M employees, therefore consistent
management systems and evaluation tools are critical tocompany safety and health success.
3M uses a formal approach to maximize the safe
performance of contractors. It begins with a­pre-qualification process before granting contracts
for work. This process includes getting informationsuch as injury/illness rates, Experience Modification

We are always improving our current systems, and our
Global Safety and Health Plan also has a contract safety
element. In addition to the contract safety elements,
such as fall protection, confined space entry, and life
safety activities, we make sure our initiatives apply toeveryone at 3M, including contractors. Contractors
and employees are treated the same, so anything that
positively impacts employees also helps contractors. As
we continue to work on global projects, we are learningfrom past experiences. We seek to improve contractor
safety year-by-year.
3M’s Worldwide Incident Management System (WIMS)
includes the reporting of all Contractor incidents.
This includes Injuries and Contractor Worker Hours.
International locations can now enter contractor worker
hours into WIMS. US Location hours automatically
get entered into WIMS monthly from a file we receivefrom Payroll for 3M Employees and Volt for Contingent
Contract employees.

We are excited to announce that in 2015 3M
reached the lowest recordable loss rate incompany history. All of our big-picture efforts
over the years are translating into real results.

Further, in 2015, we have put increased emphasis on
contractor health and safety in our audits to get the best3M 2016 Sustainability Report

data possible. By getting the best data possible, we canmake the best decisions to ensure the safety of everyonein the 3M community.

Process Hazard Management
Process Hazard Management (PHM) is a systematic
approach for prevention of process-related fires,
explosions and sudden release of toxic materials.
3M PHM employs accepted industry practices andregulations. 3M PHM allows facilities to identify, control
and verify that process hazards are understood andmanaged. The framework for PHM consists of:

Health and Safety | 98

Over the past decade, over 95% of all chemical agentsand noise baseline exposure risk assessments have been
completed for all jobs, creating a foundation of exposure
assessments used to drive the following:•

Baseline exposure assessments•

Annual air and noise sampling plans•

Exposure assessment validation plans•

Medical surveillance applicability analysis plans•

Hearing conservation programs including
E-A-Rfit training•

Respirator and personal protective equipment
programs•

As needed, other exposure management
programs including administrative, industrial
ventilation and isolation controls• Hazard Identification and Assessment• Hazard Reduction and Control• Control Effectiveness Verification
Various tools are being used to ensure the appropriate
rigor is being provided to manage the hazards
associated with hazardous processes. Risk managementof the hazardous process begins with the use of the
Hazardous Process Evaluation Tool (HazPET), which
provides a consistent and simplified categorization of
the hazardous processes. Process Hazard Analysis (PHA)
methodologies are used to assess the process hazards
and evaluate the effectiveness of existing safeguards.
Recent enhanced PHA requirements will provide amore rigorous hazard assessment methodology. Layersof Protection Analysis (LOPA) will also be used toanalyze the effectiveness of critical safety devices andsystems, by providing more attention to independent
protection layers.

Comprehensive Chemical and Noise
Exposure Risk Assessment andManagement
Comprehensive exposure risk assessment andmanagement is a systematic approach for estimating
workplace exposures to chemical and physical agentsfor all materials, processes and employees. Accurate
exposure assessments are critical to all exposure
management programs and activities. 3M uses thecomprehensive approach outlined by the American
Industrial Hygiene Association (AIHA), creating aneffective and efficient system for assessing andmanaging all exposure risks.

Each year, active qualitative assessments are used todefine annual air and noise monitoring and validationplans for each facility around the world. The air andnoise exposure monitoring results are then analyzed
using statistical methods to determine if any exposure
management programs are required.
3M requires each facility where there is potential forsignificant exposure to chemicals or noise to haveannual Chemical and Noise Assessment and Validation
Plans that identify and prioritize processes for exposure
assessment, monitoring and statistical validation. The
Chemical and Noise Assessment and Validation Plans
enable facilities to prioritize annual activities toward
completion of the goal of understanding and managing
all workplace exposure risks.

Ergonomics Risk Management
Ergonomic and noise-related injuries continue to be amajor topic for 3M, and we made large strides in theseareas in 2015. We are placing special emphasis on
developing regional leaders for ergonomics at various
sites around the globe. At 3M Brazil, for example, wehave a full-time person that leads Brazil ergonomics anddevelops projects in this area. We are developing similar
leaders and programs in places such as Poland, Mexico,
India, and Southeast Asia.
Our ergonomic training is available 24/7 to anyone in theworld who wants to learn about noise-control, and many

3M 2016 Sustainability Reportcompany leaders have offered cash-rewards to those
who can find ways to limit or reduce noise levels.

Since 2008, we have approached hearing loss
from three different perspectives:
1. We are focusing on proper assessment
practices that determine who should actually
be in a hearing conservation program.
2. When we have hearing conservation
programs, we have a hearing loss follow-up
tool to ensure proper hearing protection andtraining is taking place.
3. We are engaging people outside of 3M who
are world-renowned experts in the area of
hearing loss to figure out what we can do to
make improvements.

Further, we recently implemented our dual ear fit
program. The new dual ear fit system enables sites tocreate ear plugs that properly fit each individual’s ears.
We have purchased multiple ear fit systems that areavailable to sites around the globe.
We made a number of updates to our manuals including
the Noise and Hearing manual and the Chemical
Exposure manual. These updates, in conjunction with
our noise control web courses that are available toanyone around the world 24 hours a day, should help
improve our already stellar safety programs.
3M’s Noise Control Awards were started about four
years ago to recognize the teamwork it takes to makesignificant improvements in 3M plants. The winners
are selected from Engineering Safety Award and EHS
Achievement Award submissions and are evaluatedby members of the 3M Noise Assessment and Control
Team. The teams are recognized in their plants, an email
announcement goes out, winners are announced duringa webinar and they receive hearing protection ear muffs
to salute their achievements. Winning projects may
also share posters to spread the word about their bestpractices at the 3M Industrial Hygiene and Ergonomics
conference.
In 2015, we had sessions regarding hearing loss with allof our plant managers across the globe. At the Global
Plant Manager Conference, we had two great seminars

Health and Safety | 99

on hearing conservation, the “Ears-on Learning” seminarand the “Worldview of Hear Conservation: Requirements
and Trends” seminar. Our huge push around noise
control should translate into real results in the future.
Ergonomic risk reduction activities throughout thecorporation continue to have a positive impact on illness
rates. 3M’s Ergonomics Risk Reduction Process (ERRP)
is a global, comprehensive program. ERRP integrates
Ergonomic Job Analysis, Safety and Health, andEngineering professional development and ergonomics
engineering design criteria. ERRP reduces exposure
to commonly identify Work- related Musculoskeletal
Disorder (WMSD) risk factors and to support operational
efficiency throughout 3M.
By offering awards for ergonomic improvements, weare driving real, substantive change. The 3M Applied
Ergonomics Innovation Award recognizes outstanding
efforts focused on ergonomics improvements. It is
intended to promote effective application of ergonomics
principles and practices that improve the abilityof employees to work safely and productively andconsumers to use 3M products safely and effectively.
Candidates for this award need to demonstrate considerations and application of ergonomics and/or humanfactors and other improvements, such as improved
quality, lower costs, better efficiency, improved usability,
and reduction in risk of injury. Over the 15 years, 3M
received 1,100 submissions from around the world
focused on reducing ergonomic risks. In 2015 we hadover 100 submissions and granted several awards across
3 categories: (1) Best New Ergonomics Engineering
Design, (2) Best Ergonomics Adaptation of an Existing
Workstation or Process, and (3) Best Solution for
Under $1,000.

Auditing and ComplianceTo assure that the facility self-assessment andimprovement process is effectively being utilized
across the company, a risk-based auditing program for
Safety and Health is managed at the corporate level.
Audit findings are ranked using the same risk matrix
that is utilized for the analysis of potential hazards andincidents. Areas of nonconformance are examined forpotential hazards, which can then be investigated forcausal factors, risk assessment and corrective action toachieve risk reduction and conformance to establishedstandards. All moderate- to high-risk audit findings are3M 2016 Sustainability Report

tracked to closure, and are then reviewed and approvedby the lead auditor for satisfactory improvement.

Safety and Health Committees
3M seeks employee participation at all levels toensure involvement and ownership of safety
5and health programs and systems. This
involvement is critical to achieving effective, proactive
solutions to safety and health issues. Increasing
employee ownership and involvement in the safety andhealth process helps provide a safer, healthierworkplace. Emphasis is placed on a cooperative effort
between management and employees in achieving thesegoals. Primary examples of how these efforts align withthe risk reduction elements include:
G4

LA

•

Job hazard analysis and risk assessments•

Ergonomics teams•

Process safety management•

Potential hazard reporting programs•

Participation in investigations and prompt
follow-up of incidents and potential hazards

Health and Safety | 100

Goals and Results
Measuring leading indicators of Safety and Healthperformance is a key focus for 3M. Aggregated datafrom all Global Safety and Health Plan Assessments,
Audits and Incident Reporting are evaluated to identify
performance status and corporate-wide opportunities.
Metrics are tracked and reported for continuous
improvement at the facility, business unit, regionaland corporate levels. Initiatives such as improving thequality and level of implementation of safety and healthmanagement system elements (including preventive
measures) at each 3M site results in increased
awareness, mature programs, and reduced injury
and illness rates. In 2011, 3M set key corporate-widesafety and health objectives to continuously improve
related management systems and to proactively
reduce negative Safety and Health impacts. Significant
achievement was made in meeting those objectives.
Continuous improvement objectives have been
identified for achievement by year-end 2018.

Additional Steps to Protect Employees
3M has been monitoring, measuring andworking toward improving leading indicators of
7
performance while simultaneously increasing
the growth of the company. As a result of our efforts,
lagging indicators such as worldwide recordable and losttime rates have continued to decrease.
G4

Through this collaborative effort, all employees have theopportunity to be involved in risk assessment activities
to then develop action plans and assign responsibilities
for completing safety and health-related goals andobjectives.
Formal Safety and Health Committees are the mostactive and visible way that this is demonstrated within
3M. In fact, this aspect is represented by its own
standard of performance in the GSHP that requires
locations to establish and maintain active safety andhealth committees. They are defined specifically as
an organized group of employees from all levels of the
facility whose function is to support the safety andhealth management system by identifying preventive
and corrective measures needed to eliminate or control
recognized safety and health hazards.

In 2015, 100% of 3M manufacturing facilities
worldwide have active employee safetycommittees.

LA

3M follows the U.S. Occupational Safety and Health(OSHA) recordkeeping rules and formulas to recordand measure injury and illness rates worldwide. All 3M
employees and contingent employees, regardless offacility type but within 3M’s operational control, arecovered by our injury and illness recordkeeping rules.
In addition, contractors are asked to submit notification
to 3M of worker hours and any injuries occurring while
performing work in accordance with a 3M contract.
3M has a strong system in place for people who travel
to potentially dangerous areas around the globe. When a
travel request is placed, 3M employees receive an e-mailon what steps they should take before traveling, such as
how to deal with various disease risks. We also provide
a global traveler’s insurance program that ensures 3M
employees will be taken care of if a life-threatening
event takes place.

3M 2016 Sustainability Report

Health and Safety | 101

roofs. We also had a half-day fall protection hands-on
courses for EHS professionals. This workshop included
demonstrations of 3M’s fall protection equipment from
3M’s Personal Safety Division.

In 2015, we published a report to explain to ouremployees the dangers of Zika and how to avoid
transmission of the virus.

Fatal Incidents
Two new indicators will help track serious injury andfatality rates and how well 3M sites are doing at
lowering risk levels for high hazard activities. Bothmetrics will come from WIMS data. The two indicatorsare (1) the Serious Injury and Fatality Rate (SIF) whichmeasures all injuries that occur in 3M with a severity
score of 15 or higher, and (2) the Risk Reduction Reportfor tracking risk reductions across locations.

Injury rates are down at 3M, in fact, they are at an
all-time low in 3M and efforts to push them even lower
are underway all over the world. Year-end injury andillness results for 2015 have been compiled and there isa trend for lower rates and a reduced number of severe
injury incidents.
There are indications that this improvement is duein large part to all the work that has been conductedaround risk reduction. The cause of injuries due tocontact with equipment has decreased sharply since2013 when the updated risk reduction process waslaunched across 3M using the Risk Assessment andPrioritization (RAP) tool.

3M is always benchmarking our approach with ourpeers, and we believe we have made large strides andimprovements in 2015. Many Incident Management
Systems focus solely on the severity of the incidents
rather than identifying the level of risk associated withincidents, potential hazards or near misses. Requiring
Incident Management System users to identify the most
likely consequence from the incident, potential hazard ornear miss, and not just the actual severity of the incident,
is a critical step to identifying tasks with an elevatedpotential to result in a serious injury or fatality (SIF).

The RAP tool is 3M’s standardized methodology forrisk assessments and is a key part of the analysis ofhigh hazard activities which could result in severe
injury or death if safeguards do not effectively control
the hazards. Over 40,000 risk assessments have been
documented in WIMS since June of 2013 and risk levels
were lowered for nearly 12,000 activities as a result of
the assessments.

This new approach was implemented in 2013, andincludes the development of an inventory of SIF
precursors — a list of high-hazard activities, operations,and situations that have the potential to result in a
fatality or life-altering injury. These potential hazards aretaken through the risk assessment and reduction process
along with all near misses and incidents.

In 2015, an update to 3M Manual 80, A109, Guarding
Floor, Roof and Wall Openings, was released includinga reference to 3M’s fall protection requirements.
This addition helps align 3M’s safety and engineering
requirements for this topic. Further, a collaborative effort
was started between Corporate Safety and Facilities
Engineering to provide our facilities, engineering,
EHS, and maintenance staff guidance and direction
around anchor points, and protection when working on

In 2014, our initiative to achieve risk reduction related
to high-hazard activities was part of a 3M challenge
to improve EHS performance at our facilities. Utilizing
2012 as a baseline before program implementation,

Fatal Incidents

Fatalities

2011

2012

2013

2014

2015

Total Employees(work-related fatalities)

0

1

1

0

0

Total Contractors(work-related fatalities)

1

1

1

0

0

3M 2016 Sustainability Reportsignificant/severe injuries to Employees, Contingent andContractor Workers decreased by 25% in 2015.
Injury and Illness Rates
3M global employee incident rates for injuries andillnesses with days away from work have declined 46%
since 2006. The most frequent cause of injuries is fromcontact with objects or equipment.
The implementation of the new risk management
process is primarily designed to prevent fatal and serious
injury events related to certain activities at 3M that haveresulted in more frequent injuries than others.

Story
Science Inspired by Nature
Due to its incredible height, the distance from a giraffe’s
legs to its heart is twice that of humans, raising bloodpressure and putting great stress on the veins. Despite
this, giraffes never suffer from swelling or ulcers in theirlower legs. Scientists have studied this and determinedthat the giraffe’s tough, non-elastic skin works like theanti-gravity suits worn by astronauts, preventing thestagnation of blood in their lower extremities.
That inspired scientists at 3M to create a compression
system to help treat a painful human medical condition
called venous leg ulcers, which are caused byuncontrolled high pressure in the veins of the lower leg.
Venous leg ulcers are extremely common in the UnitedStates and affect between 500,000 to two million
people annually.
Scientists at 3M figured out that the giraffe’s thickand tight skin functions like nature’s best compression
bandage, and they created a material that reproduces
the properties of this skin to help humans. They took
the elastic wraps we use when we sprain our ankles orwrists, and modified the material to engineer a leading
two-layer compression system that mimics the skinof a giraffe.

Health and Safety | 102

3M 2016 Sustainability Report

Health and Safety | 103

3M WORLDWIDE – BY REGION
Lost Time Trends

3M Worldwide – By Region
Lost Time Trends
0.7

0.6

0.5

Lost Time IR

0.4

0.3

0.2

0.1

0
2009

2010

Asia Pacific2011

Canada2012

Europe MEA

2013

2014

Latin America

2015

United States

Worldwide

2009

2010

2011

2012

2013

2014

2015

Asia Pacific

0.42

0.11

0.18

0.12

0.08

0.03

0.04

Canada

0.15

0.10

0.18

0.27

0.13

0.13

0.14

Europe/ MEA

0.57

0.51

0.62

0.62

0.43

0.35

0.44

Latin America

0.26

0.42

0.29

0.32

0.16

0.55

0.37

United States

0.55

0.46

0.42

0.46

0.48

0.44

0.4

Worldwide

0.5

0.36

0.38

0.39

0.34

0.36

0.32

3M 2016 Sustainability Report

Health and Safety | 104

3M WORLDWIDE – BY REGION
Recordable Trends

3M Worldwide – By Region
Recordable Trends
3.5

3.0

Recordable IR

2.5

2.0

1.5

1.0

.5

0
2009

2010

Asia Pacific2011

Canada2012

Europe MEA

2013

2014

Latin America

2015

United States

Worldwide

2009

2010

2011

2012

2013

2014

2015

Asia Pacific

.62

.46

.49

.44

.35

.41

.34

Canada

.49

.48

.75

1.08

.98

.86

.82

Europe/ MEA

.77

.75

1.08

1.11

.95

.92

.7

Latin America

.56

.55

.67

.55

.67

.93

.64

United States

2.64

2.90

2.3

2.3

2.34

2.3

2.12

Worldwide

1.53

1.56

1.46

1.42

1.41

1.45

1.22

3M 2016 Sustainability Report

Health and Safety | 105

3M WORLDWIDE
Recordable Incident Rates by Cause

3M Worldwide – By Region
Recordable Trends
0.8

0.6

0.4

0.2

0.0
2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Ergonomic

Contact with object/equipment

Slip, trip, fall

Exposure, chemical

Miscellaneous

Noise exposure

Transportation accident

Exposure, biological agent

Physical agent exposure3M 2016 Sustainability Report

Education and Development | 106

Global Challenges

Education and Development

3M works hard to create a better world for everyone;
our sustainability approach revolves around educationand development within global communities and ourworkforce.

We apply science in collaborative ways to improve lives
6
1(b)
2-3
daily. Our science not only
G4
G4
G4
impacts our customers aroundthe world, but also makes a
9-13
10
1
difference in the way we work.
At 3M, we are a collaborative, diverse group of people
whose ideas transform the future. We continuously buildand enhance our inclusive culture, creating anenvironment where our people feel safe, engaged andfree to create.
G4

G4

G4

EC LA LALA SD SO

Approach
An inclusive culture at 3M is built on our Human
Resources Principles – to respect the dignity
12-13
and worth of individuals; encourage theinitiative of each employee; challenge individual
capabilities; and provide equal opportunity. 3M iscontinuously focusing on building and maintaining an
inclusive culture.
G4

LA

Having a diverse global workforce helps us to generate
more ideas which yield more innovative solutions. As
global markets expand and more than 60 percent of
3M’s sales come from outside the United States, werely on employees who understand the needs of diverse
customers. Our goal is to reflect the diversity of ourglobal customers, suppliers and channel partners, andbuild on each employee’s abilities to achieve greater
customer satisfaction and accelerated growth.
When we seek and value differences, we are embracing
diversity and fostering an inclusive environment thatcreates opportunities for our people, our culture, ourcustomers, and our communities. These four areas offocus shape our actions worldwide.

3M 2016 Sustainability Report

2025 Diversity Goal
Our new 2025 goal is to double the pipeline ofdiverse talent in management to build a diverse
workforce. Increasing women and diversity inevery region in which we operate is a core partof our Sustainability strategy. We recognizethat doubling our diverse talent in management
will help build a diverse pipeline for executive
leadership as well.

3M was recognized as a best place to work forLGBT Equality. Further, the Corporate Equality
Index (CEI) – a national benchmarking survey
and report on corporate policies and practices
related to lesbian, gay, bisexual and transgender(LGBT) workplace equality – gave 3M a 100
percent perfect score – our fifth consecutive
perfect score.

PeopleWe seek and value differences in people – in thinking,experience, ethnicity, age, gender, faith, personalities
and styles. We believe that each individual mattersand contributes to growth and success. The different
cultures, nationalities, backgrounds, insights, andphysical and mental abilities of our people power ourcreativity and ideas. The different skills, experiences
and abilities of our people are what drive our company
forward and keep us relevant and reflective of ourcustomers and markets.
We continue to position 3M as a leading company byensuring we have a diverse workforce with the rightpeople in the right positions to meet our business needs:•

Seeking and attracting diverse and qualified
candidates•

Building our global pipeline of diverse candidates•

Strengthening 3M’s reputation as a great placefor diverse people to work

Education and Development | 107

During 2015, in the U.S. alone, we participated in several
recruiting events to connect with people and talk about
employment at 3M, including:•American Indian Sciences and Engineering
Society•

Asian MBA•

Martin Luther King Jr. Day Career Fair•

National Black MBA Association•

National Organization for the Professional
Advancement of Black Chemists and Chemical
Engineers•

National Society of Black Engineers•

National Society of Hispanic MBAs•

Reaching Out LGBT MBAs•

Society of Hispanic Professional Engineers•

Society of Women Engineers, (National andRegional events)•

South by Southwest•

The Consortium for Graduate Study inManagement•

Forum on Workplace Inclusion, hosted by
University of Saint Thomas

Globally, we hold our “Inventing a New Future
Challenge” for students to work as teams on projects
finding solutions to problems. In its second successful
year, eight countries participated in a local phase of
the program, and the top 3 winners came to St. Paul
headquarters for the final competition. Some students
that applied to the challenge have been offeredinternships or permanent positions in their countries.
We have formalized our commitment to diversity by
establishing a 2025 Sustainability goal to double thepipeline of diverse talent in management to build adiverse workforce. By being more planful regarding thedevelopment of our future leaders, we are creating morerobust pools of talented and qualified people to improve
the representation of diverse leaders at all levels. This
2025 goal applies to all countries and ensures leadershipis accountable for progress.
Initially, we are focused on building our pipelines withmore women and people with disabilities, and overtime we will expand our actions to include other groupsof people. We will be more successful in meeting this3M 2016 Sustainability Reportgoal as we have a better understanding of our people
already working in 3M. In the U.S. and many othercountries we provide our people with the opportunity
to opt-in and provide confidential information about
their own disability status, veteran status, race/ethnicity
and gender.
Our Equal Employment Opportunity (EEO) policies
prohibit all forms of illegal discrimination or harassment
against applicants, employees, vendors, contractors or
customers on the basis of race, color, creed, religion,sex, national origin, age, disability, veteran’s status,
pregnancy, genetic information, sexual orientation,
marital status, citizenship status, status with regards topublic assistance, gender identity/ expression or any
other reason prohibited by law.
The Board of Directors values diversity as a factor in
selecting nominees to serve on the Board because its
experience is that diversity provides significant benefit
to the Board and the Company. Although there is no
specific policy on diversity, the Committee considers
the Board Membership Criteria in selecting nominees
for directors, including diversity of background andexperience. Such considerations may include gender,
race, national origin, functional background, executive or
professional experience, and international experience.

Culture3M is committed to fostering an inclusive environment
where employees thrive, feel safe and respected,
involved and valued, and free to be their best selves tocreate and innovate and contribute.
It takes every single person in 3M to use inclusive
behaviors to strengthen our culture. Inclusive behaviors
are included in the descriptors of the Leadership
Behaviors and expected of everyone. 3M is providing
education to strengthen cultural agility and limit
unconscious bias, reinforced by a strong global
communication campaign, “I’m in”, that has alreadyreached 60 countries and has 75% awareness among
our people worldwide.
We are building global fluency through the learning anddevelopment of our leaders and people everywhere.
Diversity and inclusion topics that resonate worldwide
are included in the new 3M Leadership Way programsand enhanced by providing hands-on experiences for
greater insight and impact.

Education and Development | 108

One of the ways we involve our people in understanding
and appreciating diverse perspectives is throughparticipating in communities of interest, also referred toas employee resource networks. In these communities,
people can share ideas and work together on common
interests. We have many communities that support andadvance diversity and our culture:
3M Women’s Leadership Forum
Building on our strong past, the 3M Women's Leadership
Forum (WLF) is a community of passionate womenand men who realize the business value better genderbalance can provide in driving efficient growth. Their
mission is to accelerate the inclusion and advancementof women worldwide. WLF chapters and hubs are
growing and flourishing in our countries and sites
worldwide, and are visibly active in more than 70
locations. These chapters are led by local women andmen and supported by their leadership. The 3M WLF
is sponsored by a Global Executive Steering Team tobridge top-leadership commitment with local leadership
responsibility and support and the grass-roots passion ofpeople everywhere.
3M Employee Resource Networks (ERNs)
3M ERNs give employees an opportunity to networkand enhance their leadership skills while providing an
opportunity to collaborate across cultures, lifestyles
and genders. Our ERNs help 3M recruit, engage andretain more inclusively. They work with our businesses
to provide relevant customer insights, and sponsor
innovative educational opportunities that advance all
employees. These networks include:•

A3CTION (Asians and Asian-Americans Coming
Together for Innovation and Opportunity
Network)•

African American Network•

disAbility Awareness Network•

GLBT+ Network•

Latino Resource Network•

Military Support Network•

Native American Network•

New Employee Opportunity Network (NEON)•

Team Austin (a collaboration of our Employee
Resource Networks on our Austin campus)•

Women’s Leadership Forum3M 2016 Sustainability Report

Education and Development | 109

3M’s ERNs also partner with 3M businesses to tackle
specific business challenges, often with impressive
results. Many of our ERNs are able to identify significant
market potential in specific customer segments –some of which include millions of current or potential
customers. Our businesses are leveraging ERNs toaccelerate growth in emerging markets. For instance,
the Industrial and Transportation Business partneredwith the Latino Resource Network to understandhow to engage and sell to diverse customers using a
multicultural business development process.

2015 Recognition
Named as a "Best Place to Work" by the Human
Rights Campaign for achieving five years in a
row by obtaining a perfect score of 100% on the
Corporate Equality Index. (Best place to workfor LGBT)
Among Top 20 Supporters of Historical Black
Colleges/Universities
Top 50 Employer by the Minority Engineers
Magazine – reader’s choice

Customers and Markets
To effectively grow our businesses and serve ourcustomers, we build our workforce to reflect thepeople in the industries and markets who work inthem. Our goal is to reflect the diversity of our global
customers, suppliers and channel partners, and build oneach employee’s abilities to achieve greater customer
satisfaction and accelerated growth. With greater
insight and understanding of differences, we can be
more competitive and more relevant in providing
breakthrough ideas and approaches to address
customers’ challenges.
3M’s strategy to ‘Build high performing and diverse
global talent’ leverages the strength of our people toimplement other 3M strategies, namely ‘Gain profitable
market share and accelerate market penetration
everywhere’ and ‘Expand relevance to our customers
and our presence in the marketplace’.
We are using a diversity lens in our business processes,
as we gather insight and inspiration to help solve
customers’ challenges and expand customer and market
opportunities. For example, personal safety products
in traditionally male-dominated professions (welding
helmets and safety wear) are now available in sizes
for women.
We will continue to explore additional opportunities in
product and packaging development and design, service
delivery, and supplier diversity, as part of applying
greater diversity insight in our marketplaces.

20/20 – 20% by 2020 Women on Boards
Among the top scoring companies in Calvert
Investments’ Survey of Corporate Diversity
Practices of the Standard & Poor 100. Ranking
90 of 100 points, improving 15 pts from last
survey, which is done every two years

Our Footprint
The employee metrics below are reflective of
employee headcount (total number of 3M
10full-time and part-time employees) not 3Mfull-time equivalent (FTE) employees. Due to acquisition
integration schedules onto 3M’s human resources
systems, detailed employee information below may
differ from employee totals in 3M financial reports.
G4SD

3M 2016 Sustainability Report

Education and Development | 110

Females Hired(As a percent of new hires)
60%

45%

30%

15%

0%
2010
United States

2011

2012

Latin America

2013

Europe MEA

2014
Canada2015

Asia Pacific

2010

2011

2012

2013

2014

2015

United States

32%

36%

34%

37%

36%

34%

Latin America

45%

50%

51%

55%

53%

49%

Asia Pacific

24%

27%

26%

31%

35%

29%

Europe MEA

38%

35%

37%

34%

33%

36%

Canada

40%

38%

40%

42%

42%

38%

3M 2016 Sustainability Report

Education and Development | 111

Total 3M Employees(Includes both full-time and part-time employees)
40,00030,00020,00010,0000Asia Pacific2011

Canada2012

Europe MEA

2013

2014

Latin America

United States

2015

Asia PacificCanadaEurope/ MEA

Latin America

United States

2015

17,681

1,994

21,25013,282

36,201

2014

17,853

1,825

21,184

14,03935,842

2013

18,402

1,842

21,151

13,19434,993

2012

18,0091,862

20,516

12,09734,073

2011

17,9071,904

19,005

11,15733,2803M 2016 Sustainability Report

Education and Development | 112

Female Employees in Management
2015

2014

2013

2012

2011

2010
22%

23%

25%

26%

27%

3M 2016 Sustainability Report

Education and Development | 113

Percentage of Total 3M Employees Per YearAge Distribution

Percentage of total 3M Employees Per Year
2010

2011

2012

2013

2014

2015

26.60%

24.20%

22.00%

20.10%

18.20%

16.20%

Asia Pacific

1.70%

1.50%

1.20%

1.18%

1.05%

0.93%

Canada

0.80%

0.70%

0.60%

0.54%

0.48%

0.47%

Europe/Middle East/Africa

5.50%

5.00%

5.00%

4.43%

4.00%

3.7%

Latin America

1.20%

1.10%

1.00%

0.83%

0.75%

0.57%

United States

17.50%

15.80%

14.20%

13.07%

11.75%

10%

Generation X (1961-1981)

60.20%

59.90%

60.10%

59.30%

58.50%

58.40%

Asia Pacific14.40%

14.80%

14.10%

13.40%

12.60%

12%

Canada

1.50%

1.50%

1.40%

1.40%

1.30%

1.5%

Europe/Middle East/Africa

14.70%

14.70%

15.20%

15.00%

14.70%

15%

Latin America

8.70%

8.50%

8.50%

8.50%

8.40%

7.9%

United States

20.80%

20.50%

20.90%

21.00%

21.50%

22%

Generation Y (> 1981)

13.20%

15.90%

17.90%

20.60%

22.80%

24.50%

Asia Pacific

3.90%

5.20%

5.40%

6.00%

6.00%

6.3%

Canada

0.10%

0.10%

0.10%

0.20%

0.20%

0.27%

Europe/Middle East/Africa

2.60%

3.10%

3.60%

4.10%

4.40%

4.8%

Latin America

3.30%

3.80%

4.50%

5.30%

6.00%

5.8%

United States

3.30%

3.70%

4.30%

4.90%

6.20%

7.4%

Baby Boomers (1943-1960)

3M 2016 Sustainability Report

Education and Development | 114

Employees Hired

2015

2014

2013

2012

2011

0

1,250

United States

Latin America

2,500Europe MEA

3,750

Canada5,000

Asia Pacific

2011

2012

2013

2014

2015

United States

3,559

3,348

3,580

4,470

3,841

Latin America

2,096

2,749

3,445

4,613

3,830

Europe MEA

1,855

1,500

1,636

1,637

1,352

Canada

105

90

95

115

130

Asia Pacific

3,161

1,636

1,715

1,147

1,309

3M 2016 Sustainability Report

Education and Development | 115

Female Employee Headcount(As a percentage of total)

United States

Latin America

Europe MEA

CanadaAsia Pacific

0

10%
2015

2014

20%
2013

2012

30%

40%

50%

2011

2011

2012

2013

2014

2015

United States

33.67%

33.00%

33.00%

33.00%

33.00%

Latin America

40.01%

41.99%

42.94%

43.49%

44.30%

Europe MEA

35.03%

34.38%

34.00%

33.91%

33.80%

Canada37.08%

37.06%

36.54%

36.55%

40.40%

Asia Pacific28.20%

27.97%

27.92%

28.17%

28.20%

3M 2016 Sustainability Report

Investing in our People
At 3M, we’re a company of bright minds collaborating to better our world. Our training is an9, 1(b)ever-changing, constantly evolving process.
The estimate of 25 hours per FTE of training anddevelopment was reached from a formal standpoint, but
we do not believe it accurately covers the whole picture.
We utilize the 70-20-10 development model whichindicates that over the course of a career, 70 percent oflearning is done on the job, 20 percent comes throughother employees, and only 10 percent of meaningful
development is reached through formal training. Our useof Individual Development Plans (IDPs) is an essential
aspect of understanding training and development
at 3M.
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We strive to have every employee completea development plan. Around 85% of theprofessional, non-production population
completed an IDP in 2015, an increase of nearly
15% over 2014. This reflects our intentional
efforts to foster development.

2015 also marked the completion of work to transition
to a new technology platform that better supports
IDP creation. With the roll-out of the new platformin early 2016, employees will be easily able to linkdevelopment planning to specific competencies, forwhich development resources are already available.
Aligned with this, we have a goal of 100% of professional
employees having IDPs.
Our learning orientation and philosophy is results rather
than activity-based. Measures such as training hours
or costs per employee are not leading human capital
performance indicators for 3M. We believe indicatorsthat align people results to the success of the company
are direct performance indicators of development
programs. Leadership and employee engagement,
Employee Retention Rates, New Product Vitality Index(a key metric for the company -- sales percentage of
new products introduced in the previous five years),
Brand Recognition, Acquisition integration milestones,and Lean Six Sigma project value are a few examples
of indicators that contribute to 3M's recognition as anindustry and global leader.

Education and Development | 116

While we can estimate that our numbers are close to
averages found in other large manufacturing companies,
comprehensive global metrics on training and training
investments are difficult to track partially due to 3M's
history of decentralized accountability and control overbusinesses. Business leaders and HR partners in the 3M
businesses/functions respond to their marketplaces interms of meeting those training and development needs.
This decentralized, locally accountable approachenables quick reaction and fine-tuning to meet needsof the unique markets and specialty needs of employees
serving those markets. However, this approach meansthat tracking non-corporate/local efforts is difficult
because each is adapted to the needs of that uniquemarket and business/function and may not use
corporate wide systems.
Our global voluntary turnover rate continues to be underfive percent, and this is a source of great pride for ourcompany. Compared to most other companies, 3M
employees love working here, and they rarely leave thecompany. Our Employee Turnover Rate is an annualized
turnover rate that measures employees that haveterminated or retired from 3M during the calendar year,
excluding foreign service employees and 3M temporary
employees. Temporary employees are 3M employees
hired temporarily with intent to be employed short-term.
They do not include Contingent Workers (individuals
provided by a third-party staffing agency to perform
temporary work).
We calculate voluntary turnover separately fromretirements, company initiated turnover, and reductions
in force. Voluntary employee turnover is definedas turnover due to employee initiated reasons (e.g.,
returning to school, going to another job in a different
company). Total turnover includes Voluntary turnover
and all other forms of turnover (e.g., termination
as a result of restructuring, termination for poor
performance, retirements).
3M’s HR department is unique in that we have one global
system and process where all of our HR information istracked. At every 3M location around the globe, HR
has instant access to all of the information. We use the
QlikView reporting tool – instead of having islands ofinformation, we’re all using the same information thatcan be tracked.

3M 2016 Sustainability Report

Education and Development | 1172015 Employee Training andDevelopment Advancements
Our 2025 goal is to have 100% employee participation(production and nonproduction) in development
programs to advance individual and organizational
capabilities. Our employees are encouraged andsupported to pursue areas of interest and develop career
paths and opportunities aligned with those interests.
Moving forward, we seek to formalize an individual
development plan with every employee.
In 2015, we also held area developmental months
around that globe. They resulted in an overall increase ofcourse completion; in fact, in 2015 alone, 3M employees
completed 1,289,932 courses. We placed at #8 on
Chally Group's Best Companies for Leaders.
Our new Leadership Way program was initiated todevelop strong leaders. It offers a global, consistent
approach that is customer focused and results driven.
This approach has been driven by our CEO, Inge
Thulin, as a method to bring 3M’s playbook to life. Fourleadership development programs (Catalyst, Amplify,
Ignite, and Spark) are part of the Leadership Way. These
programs are targeted for high potential leaders acrossdifferent career levels. Each program offers participantsa blended, multi-channel approach to development.
Further, each program recognizes that learning requires
both time and practice, and therefore programs areexperiential journeys that span months and entail
hands-on projects with real deliverables. We believe thisapproach will strengthen 3M’s ability to execute against
our playbook, and create shareholder value.

Total Rewards
3M Total Rewards includes a range of plans andprograms designed to attract, retain and motivate ourhigh-performing talent. 3M regularly benchmarks its
compensation and benefits with those of companies
that are comparable in size and scope to ensure that we
remain highly competitive.
•

Competitive pay. Base salary and variable
incentive pay linked to company and individual
performance.

•

Competitive benefits. High-quality medical anddental plan options, savings and retirement plans,
and a 3M employee stock purchase plan thathelps you become an owner of the company you
work for.

•

Innovative programs and resources. Professional
and personal growth opportunities, community
involvement, and recreational pursuits.

Comprehensive Benefits
3M is committed to providing competitivemarket pay and comprehensive benefits. In
2-3, 10
addition to providing a professional work
environment that promotes innovation and rewards
performance, 3M’s total compensation for employees
includes a variety of components for sustainable
employment and the ability to build a strong financial
future. 3M’s total compensation program includes thefollowing for all eligible employees worldwide. All
regular full-time employees in the US are eligible forthese benefits – regular part time employees who workat least 20 hours/week are also eligible. Some programsand benefits may differ internationally due to local laws
and regulations.
G4LA

Compensation: Annual salary, short-term annual cash
incentives and long-term equity incentives.
Vacation/Paid Leave: Vacation, holidays and paid leave,
including short-term and long-term disability benefits.
FlexAbility: 3M recognizes the importance of helping
employees balance their life concerns with their work
responsibilities. 3M employees are able to explore
a variety of flexible work arrangements with their
management, including part-time, job share, flex-time,compressed work week and telecommuting. These
opportunities are communicated to employees throughmanagement and are administered through 3M internal
systems.
Life/Disability Insurance: Life insurance for employees
and their eligible dependents at group rates. Short- andlong-term disability benefits offered to help employees
who cannot work due to illness or injury.
Health Care: Medical, prescription drug, dental andvision benefits.

3M 2016 Sustainability Report

Health Savings Account: An employee-owned
Health Savings Account that includes an annual 3M
contribution.
Flexible Spending Accounts: Tax-free reimbursement
accounts for qualified health care and dependent careexpenses.
Parental Leave: (U.S. example) To allow parents enoughtime to bond with their new children, 3M’s Family/
Medical Leave Policy offers all regular full-time andpart-time employees additional bonding leave forthis purpose even if this means they will exceed their
12-week allotment of family/medical leave (stemmingfrom the Family Medical Leave Act) for the year. The
additional bonding leave must be taken on a full-timebasis and must be completed within 12 months after thebirth of the child or placement in the home for adoption
or foster care. 3M complies with state laws within the
U.S. and with local laws and requirements for operations
outside the U.S. While there can be different definitions
for “parental leave,” in the US during 2015, a total of
722 employees took either short term disability benefits
for maternity (paid leave) and/or unpaid bonding leave(includes adoption) (female 497/male 225).
Domestic Partner Benefits: We offer same sex
domestic partner benefits to employees who meet therequirements of having a domestic partner. Eligible
domestic partners and their eligible child(ren) canreceive medical and dental benefits, as well as optional
life insurance coverage, subject to plans terms andrequirements. We also offer retiree medical for qualified
domestic partners.
Retirement Programs: Our Retirement Programprovides a solid foundation of retirement benefits,
which includes a 401(k) plan with a company matching
contribution, employer contributions to a Retirement
Income Account, and a Retiree Medical Savings Account(RMSA) to help offset the cost of pre-Medicare medical
coverage in retirement.
Stock Ownership/Investment Programs: After twomonths of service at 3M, our General Employees Stock
Purchase Plan allows eligible employees to contribute3-10 percent of after-tax pay to purchase 3M stock at an
option price that is 85 percent of the fair market value ofthe stock.

Education and Development | 118

Dependent Care: 3M provides a range of resources
to assist employees with dependent care, includingchild care and elder care. 3M offers child care andadult care consultation and referral services throughthe 3M Employee Assistance Program in order to help
employees locate appropriate services for their loved
ones across the United States. 3M employees in the St.
Paul area also have access to back-up child care, whichis available when their regular day care cannot care for
their child.
Adoption Assistance: 3M provides financial assistanceto eligible employees who choose to adopt children bycovering a portion of the eligible expenses associatedwith the adoption.
Employee Assistance Program (EAP): In 1974, 3M
began an employee assistance program that today
provides a variety of educational programs, resources
and consultation services to U.S. employees and theirdependents, and leaders across 3M to assist them innavigating challenging situations. In some locations
outside of the United States, 3M offers employee
assistance resources at the local level. Resourcesenhance well-being and effectiveness; prevent
problems; or address a wide range of personal, family,
work or behavioral health challenges; and are available
online, in print literature and other media. In addition, 3M
offers U.S. employees legal and financial consultation
and referral services through the EAP. Financial issues
include debt management and taxes, while legal issues
include family, civil, tax or criminal.
Corporate-Supported Employee Groups: Through3M clubs around the world, 3M encourages employeeswith shared interests to pursue those interests in a
supportive environment. Every country in which 3M
does business has a 3M employee club that sponsors
special events, activities and sports programs and offers
special discounts and privileges in support of exercise,friendship and fun. At 3M Headquarters in St. Paul,
Minnesota, the 3M Club of St. Paul goes back to 1963.
3M also sponsors Employee Resource Networks under
the direction of 3Mgives.

3M 2016 Sustainability Report

Additional Resources andOpportunities Offered Globally:•

Scholarships for eligible dependents of
employees•

Employee stores for purchase of 3M products
online or at many 3M locations•

Support for community involvement:
Matching Gifts, Volunteer Match and 3M
Community Giving.

For more information please see 3M Healthy Living and
3M Benefits.

Education and Career Growth
Today’s business environment demands that we
become faster and more flexible in anticipating andexceeding the needs of our customers, shareholders
and employees. Creating a high-performance culture
built on continuous learning helps 3M achieve businessgrowth for the Company and professional growth for
employees.
New Employee Onboarding: 3M invests in onboarding
and developing new employees so that they have thetools, resources and networks they need to succeed.
Our onboarding process begins at the time a candidate
accepts a job offer and continues through the first yearof employment. In 2013, we implemented an onboarding
portal via our intranet in more than 60 countries.
Countries have customized information available inlocal languages. In early 2015, we deployed a morecomprehensive onboarding technology that provides
pre-start information delivery and engagement for new
employees on the front end and clear metrics, reporting
and tracking for 3M on the back end. This investment
sets new employees up to be successful and makemeaningful contributions from the start. Instituting a
3M-wide onboarding process is also one way we help
supervisors and managers support employee growth
and achievement consistently throughout the company.
Skill Mapping and Contribution and Development
Assessment: 3M has separate processes for employee
performance and career development reviews. Each

Education and Development | 119

year, all 3M nonproduction employees identify theircontributions in meeting their specified goals throughan employee performance review system. 3M strives tohave 100 percent of nonproduction employees receiving
performance and career development reviews at least
annually. In 2015, approximately 95 percent of global
nonproduction employees set up a performance review
form and 67 percent completed the entire performance
review process.
In addition, employees create or update theirdevelopment plan that includes goals to elevate
individual performance and skills. Additional
skill-mapping tools may be used in collaboration
with the employee’s supervisor to identify long-term
desired goals. Contribution and development
assessments for production staff follow site-specificprocedures depending on local requirements andbusiness-specific needs.
Accelerated Leadership Development: 3M views
leadership development as a competitive advantage
and is accelerating leadership development acrossall employee segments by using new technologies
and delivery methods to make its programs globally
inclusive.
There are multiple leadership development programs
offered for different stages in employees’ career journey.
There are business and leadership courses available toemployees at any level, including online programs thatare free and available to employees in all geographiesand cover topics ranging from personal effectiveness tofinance. There is also a year-long onboarding programfor new supervisors, as well as several programs forleaders as they progress into different leadership roles.
3M is building leadership capability through all our
programs by embedding diversity, collaboration andinclusion strategies directly into our programs. We
have also aligned courses to key leadership behaviors,
which are tied to performance assessments and aim
to encourage and foster the development of self
and others. We place great importance on driving
engagement of all employees by focusing on their careerand development desires.
Since 2012, 3M has embarked on a process to define
and communicate global functional competency models
which clarify expectations of leaders regarding theknowledge, skills, and abilities to be developed over

3M 2016 Sustainability Reporta career within a specific function. Based on sharedexpectations, career paths are aligned with investment
in training and development resources are aligned. Eachfunction with a completed competency model publishes
a guide that provides links to relevant training opportunities, as well as development suggestions that can be
discussed and agreed on with the employee’s supervisor
on growing the competency through on-the-job
activities or social learning through a coach or mentor.
Currently the competency-based resources cover
approximately 88% of the non-production employee
population.
Tuition Reimbursement: In 3M locations around theworld, employees are encouraged to continuously learn
and improve their skills. In most countries where we dobusiness, 3M offers, with management support, 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.
Mentoring: Through the 3M Mentoring Network,
the organization encourages self-directed mentoring
partnerships. Mentors are identified globally throughout
the Company utilizing online social platforms, including
profile tagging and wikis. An online mentoring
program design kit with guidelines for developing andimplementing a mentoring program in alignment withstrategic business objectives is available to support
organizations wanting to offer mentoring programs. An
executive mentoring program supports the professional
development of high-performing employees. Originallyfocused on minorities and women, this program was
expanded in 2013 to include all high-performing
employees.
Outplacement Assistance: 3M offers a range ofoutplacement services and resources for employees
whose positions are eliminated due to business needs.
These resources are offered on a worldwide basis tohelp employees transition to employment in other areasof 3M or outside of the Company and include services
such as development of career transition skills andidentification of job placement opportunities.

Education and Development | 120

Employee Engagement and Recognition
We are always happy to report that 3M’s
turnover rate is far lower than the turnover
11benchmark rate. We take great pride in thisfact, and it’s a testament to how much our employees
love working at 3M. We have long been a supporter ofgathering a well-rounded view of an individual’s
performance, and we do not use a formal comparative
ranking of employees within each employee category.
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90% of global salaried, non-production, employees
received performance ratings through 3M’s Employee
Performance Review Process (EPR) in 2015. The reason
our appraisals apply to 90% of employees, as opposed
to 100%) is because there are certain countries that do
not require a performance management process forcertain salaried production employees.
Our process includes two components: 1) measurable
targets agreed upon by each employee and his/hersupervisor; 2) Leadership Behaviors ratings, whichreflect the extent to which the employee engaged incore behaviors that allow 3M to execute our strategies
and meet our objectives.
Ratings of achievement of measurable targets impact
variable compensation for all employees. Ratingsof Leadership Behaviors impact long term variable
compensation for those employees in senior positions(e.g., job grades 14 or higher, or equivalent).
The performance review process helps hold each of
our employees accountable for his or her contribution
and everyday behaviors in the organization. 3M’s
performance process aligns personal goals with organizational goals – by guiding behavior, we ensure that weachieve our goals in ways that support and strengthen
our culture and achieve sustainable growth. In addition,
3M has long prioritized taking a well-rounded view ofan individual’s performance and ensuring employees aretreated in a fair and consistent manner. To achieve this,multiple steps are taken.
First, performance goals, linked to higher-level organizational goals, are set jointly between the individual
and their leader. Tools provided to leaders during 2015
helped to facilitate conversations between leadersand employees to ensure mutual understanding of
expectations and desired behaviors.

3M 2016 Sustainability Report

Second, feedback on progress toward these goals isprovided formally, twice a year, and supervisors aretaught and encouraged to provide routine feedback
to help employees adjust performance and meet or
exceed goals.
Third, 3M has implemented Management Team
Reviews. During these reviews, input from multiple
managers, including those not immediately in one’s
area of expertise, is used to ensure a total picture of
the employee is provided. 3M also offers optional tools
to gather performance information, such as a client
input survey, provide all 3Mers with a uniform set of
expectations to drive consistency in ratings across
job levels.
Finally, the Management Team Reviews function not
only to provide comprehensive information about anemployee, but also to ensure that ratings are consistentacross employees within a job. This maximizes fairness
by equating ratings for similar performance.
Throughout the year, and in conjunction withperformance discussions, employees meet with theirsupervisor to evaluate progress on current goals andadjust existing goals as need to align to any changes
in priorities. As employees meet their goals from theirdevelopment plan, they are encouraged to update their
Talent Profile and Skills Profile and review tools thathave been developed to capitalize their strengths.
We are currently in the process of moving our
performance management to a new platform that willallow us to have more direct linkage between individual
performances and objectives. The new platform shouldbe active in 2016, and it will further improve 3M’s ability
to appraise, improve, and link personal experience, work
experience, and leadership behaviors.

Networks and Collaboration
3M has numerous pathways to support organizational
communications, learning and knowledge management.
There are a variety of corporate and job functional
systems to methodically help information andknowledge emerge and flow to the right people at theright time to add value. For example:
Formal Learning Networks: The Learning Solution
is 3M’s corporate learning management system andis a one-stop electronic learning center that helps

Education and Development | 121

employees enroll in, deliver, track and report on learning
activities. The Learning Solution serves the learningneeds of 3M business units, plants and learning organizations globally.
Intranet Knowledge Platforms Databases: 3M’s
intranet site structure is set up so that each employee
has a Work Center as one of the quick-link tabs following
login. Each Work Center is a collection of tools, systems
and processes that are used routinely in daily work
practices to successfully complete projects and work
assignments in an employee’s functional work area.
Company news for employees is available on a global
news site called Spark 3M News. It enables employees
to share news articles, videos and links with others bothinternally and externally via email and social media.
Best Practice Descriptions/Processes: As a diverse
technical company, 3M shares best practices several
ways. Two of the most widely used internal organizations
are the 3M Technical Forum and the 3M Engineeringand Manufacturing Technology Organization. These twoorganizations provide an extensive network of expertisethrough specialized chapters focused on 3M’s coretechnologies and other emerging markets. Employees in
R&D, manufacturing and other parts of the supply chain
are able to collaborate and drive innovation globally
across the organization.
Company Education: In addition to a variety of generalcourses, webinars, etc., 3M offers specialized extended
courses to increase skills such as the 3M Leadership
Development Institute, the 3M Supply Chain Academy,
the 3M Marketing University and the General Managers’
and Managing Directors’ program.
Idea Sharing: Idea management is driven differently
across the Company depending on organizational
needs and what works best for the area of work. Some
platform examples include Yammer, Wiki Enterprise, andvarious 3M internal and external social media channels.
Systems are implemented and available globally to share
best practices and ideas. Additionally, since about 1948,
we’ve encouraged our employees to spend 15% of theirworking time on their own projects and sharing thoseideas with colleagues.

3M 2016 Sustainability Report

Measurement, Feedback and Action on
Employee Engagement

Education and Development | 122

Examples of corporate awards include:•Awards for specific professionals, such as the
Global Marketing Excellence Award and theCircle of Technical Excellence and Innovation
Award

•

Awards for cross-functional teams, such as theGolden Step Award•

Awards focused on employees who improvesafety or pollution prevention•

Two prestigious lifetime achievement awards: theEngineering Achievement Award and the Carlton
Society recognition, which honor employees fortheir scientific achievements

We measure engagement and engagement drivers andprovide results to leaders and their organizations forfollow-up.
As 3M corporate policy, a standard opinion survey isadministered to all employees at locations worldwide
once every three years. 3M uses survey results toaddress employee concerns and identify opportunities
for improvement.
Summaries of survey results and actions taken are
circulated up the management chain to ensure
visibility and accountability. 3M also conducts a more­strategically-focused survey that includes engagement
measures. This survey, the Vision and Strategies
Alignment Survey was last conducted in October 2013.

Humanitarian Engagement

3M also requires its leaders to actively foster
engagement as part of their day-to-day coaching
and interactions with others. This expectation isembedded in our leadership behaviors, which apply to
all 3M leaders and links to their annual performanceassessment. 3M supports leaders in these efforts via
formal training, videos and on-demand tools.

3M improves lives through innovative social investments
in Education, Community and Environment. Our goal is
to create a better world for everyone, and our approach
includes annual social investments in our global
communities. Through these investments, we strive
to increase access to student achievement in STEM
(science, technology, engineering and math), improvestandards of living in communities where we operate,
and build environmentally sustainable communities.

Survey Measurements on Employee Engagement

Engaging Globally

Results from the Standard Opinion Survey and the Vision
and Strategies Alignment Survey indicate 3M’s supportof employee engagement is strong and continuing to
get stronger. Results have improved with each administration, up to 83 percent favorable in the most recent
survey, which is well above the threshold for strength(70 percent favorable).

3Mgives, the social investment arm of 3M, is governedby the 3M Foundation Board of Directors and Corporate
Contributions Committee comprised of senior level
executives in the company. The 3M Foundation Board of
Directors guides the social investment strategy including
giving area, budget allocation and high-level strategy
advice for execution by 3Mgives staff.

Employee Rewards and Recognition
Hard work and extra effort are rewarded and recognizedat 3M through an array of award programs. 3M sponsors
many corporate award programs to honor individuals
and teams that make significant contributions to thecompany.
In addition, many divisions also have their own specificways of recognizing and rewarding people. Across 3M,
management can choose from a variety of monetaryand nonmonetary awards to show appreciation for
exceptional contributions.

3M leaders from each region develop and administer
programs consistent with the overall 3Mgives strategy
and local culture and social needs. For example, in the
United States, 18 Community Relations Councils develop
regional strategies and direct local social investments inpartnership with the 3Mgives team. In addition, 3Mgives
regularly convenes a Global Advisory Council comprisedof senior leaders from countries around the globe toinform and develop our global giving strategy.
Since the inception of the 3M Foundation in 1953, 3M
has invested $1.45 billion in cash and in-kind donations
in communities around the world. These global

3M 2016 Sustainability Report

Education and Development | 123

investments were bolstered by employees and retirees
volunteering millions of hours.

Story

For more information please see the Collaborating with
Our Communities section.
Engaging Locally
The collaboration, discussions and interactions 3M
has with its corporate, regional and local stakeholders
strengthen the company’s connection to the community,
help address local challenges and build on relevant
capabilities.
As part of 3M’s 2015 Sustainability Goals, local
stakeholder engagement plans were developed atselect 3M manufacturing operations. Work continued
in 2015 to enhance the local and regional stakeholder
engagement process to further align with corporate
strategic focus areas. 270 prioritized manufacturing
facilities around the world have completed a stakeholder
engagement plan. A framework that enables continuous
progress and prioritization was developed with thesekey features:• Local Stakeholder Identification and Mapping• Local Sustainability Materiality Assessment andAlignment Prioritization

15 percent culture: creativity needs
freedom.
Since 1948, 3Mers have been encouraged to use 3M
resources, to build up a unique team and to follow theirown insights in pursuit of problem-solving – and to
spend 15 percent of their working time to do it.
A core belief at 3M is that creativity needs freedom.
That’s why, since about 1948, we’ve encouraged our
employees to take our resources, to build up a unique
team and to follow their own insights in pursuit ofproblem-solving — and to spend 15 percent of theirworking time to do it.
That initiative is alive and well today, and has led to someof our most ingenious inventions, including:•

Automobile window treatment films … which
enhance comfort, security and privacy in yourvehicle.

•Multi-layer optical film, which reflects 95 percent
of all light. It’s likely in your laptop, smart phone
and big-screen TV … making the screen brighter,
while reducing energy use.

• Partnerships and Planning• Impact Measurement for Engagement
Effectiveness• Reporting and Communications
A baseline survey regarding Stakeholder Engagement
Impact was completed for the sites to use the
new framework in conjunction with updated local
stakeholder engagement plants. 3M implemented thisnew framework in 2015 on sites within a select region
with the intent to implement globally in the near future.

Corporate Profile
Learn about our culture of innovationand how we're applying science toimprove lives.

3M 2016 Sustainability Report

Corporate Profile | 125

Corporate Profile
Learn about our culture of innovation and how we’reapplying science to improve lives.

About 3M
At 3M™ we collaborate and apply science in powerfulways to improve lives daily. With $30 billion in sales,
our 90,000 employees connect with customers allaround the world. Scientists, researchers and marketers
work across countries and across subjects to solve
challenges big and small in the following businessgroups: Consumer, Electronics and Energy, Health Care,
Industrial, and Safety and Graphics. These five businesssegments bring together combinations of 3M’s 46
unique technology platforms to produce over 55,000
products, driving innovation and providing for efficient
sharing of business resources.

Global Operations
Headquartered in St. Paul, Minnesota (USA), 3M
has operations in more than 70 countries and serves
customers in nearly 200 countries. The Company began
operations in 1902, and it was incorporated and beganselling products outside the United States in 1929. Aninternational operations organization was establishedin 1951. Types of operations include manufacturing
facilities, research and development/laboratory sites,
sales and marketing offices, technical centers, distribution centers, and regional headquarters. We are amember of the Dow Jones Industrial Average, and weare a component of the Standard and Poor’s 500 Index.
For further information regarding changes in 3M’s size,
structure or ownership see our 2015 Annual Report.

Our Products
3M serves customers through five business segments,
which increase speed and efficiency by sharing
technology, manufacturing, marketing and otherresources across all segments.

Industrial Business
The Industrial segment serves a broad range of markets,
such as automotive original equipment manufacturer(OEM) and automotive aftermarket (auto body shops
and retail), electronics, appliance, paper and printing,packaging, food and beverage, and construction.
Industrial products include tapes, a wide variety ofcoated, non-woven and bonded abrasives, adhesives,
advanced ceramics, sealants, specialty materials, 3M
purification (filtration products), closure systems for
personal hygiene products, acoustic systems products,
and components and products that are used in the
manufacture, repair and maintenance of automotive,
marine, aircraft and specialty vehicles. 3M is also a
leading global supplier of precision grinding technology
serving customers in the area of hard-to-grind precisionapplications in industrial, automotive, aircraft andcutting tools. 3M develops and produces advanced
technical ceramics for demanding applications in theautomotive, oil and gas, solar, industrial, electronics anddefense industries. In August 2015, 3M acquired assets
and liabilities associated with Polypore International,
Inc.’s Separations Media business, a leading provider ofmicroporous membranes and modules for filtration in
the life sciences, industrial and specialty segments.
Major industrial products include vinyl, polyester, foil
and specialty industrial tapes and adhesives; Scotch®
Masking Tape, Scotch® Filament Tape and Scotch®
Packaging Tape; packaging equipment; 3M™ VHB™
Bonding Tapes; conductive, low surface energy,
sealants, hot melt, spray and structural adhesives;
reclosable fasteners; label materials for durable goods;
and coated, nonwoven and microstructured surface
finishing and grinding abrasives for the industrial market.
3M purification provides a comprehensive line offiltration products for the separation, clarification andpurification of fluids and gases. Other industrial products
include fluoroelastomers for seals, tubes and gaskets
in engines.
Major transportation products include insulation
components, including Thinsulate™ Acoustic Insulationand components for cabin noise reduction and catalytic
converters; functional and decorative graphics;
abrasion-resistant films; adhesives; sealants; masking

3M 2016 Sustainability Reporttapes; fasteners and tapes for attaching nameplates,
trim, moldings, interior panels and carpeting; coated,
nonwoven and microstructured finishing and grinding
abrasives; structural adhesives; and other specialty
materials. In addition, 3M provides paint finishing anddetailing products, including a complete system ofcleaners, dressings, polishes, waxes and other products.
Safety and Graphics Business
The Safety and Graphics segment serves a broad rangeof markets that increase the safety, security and productivity of people, facilities and systems. Major productofferings include personal protection products; traffic
safety and security products, including border andcivil security solutions; commercial solutions, includingcommercial graphics sheeting and systems, architecturaldesign solutions for surfaces, and cleaning andprotection products for commercial establishments; androofing granules for asphalt shingles. In August 2015,
3M acquired Capital Safety Group S.A.R.L., a leading
global provider of fall protection equipment.
This segment’s products include personal protection
products, such as certain disposable and reusable
respirators, personal protective equipment, head andface protection, body protection, hearing protection
and protective eyewear, plus reflective materials thatare widely used on apparel, footwear and accessories,
enhancing visibility in low-light situations. In traffic
safety and security, 3M provides reflective sheetingused on highway signs, vehicle license plates,
construction work-zone devices, trucks and othervehicles, and also provides pavement marking systems,
in addition to electronic surveillance products, andfilms that protect against counterfeiting. Traffic safety
and security also provides finger, palm, face and iris
biometric systems for governments, law enforcement
agencies, and commercial enterprises, in addition toremote people-monitoring technologies used for offender-monitoring applications. Major commercial graphics
products include films, inks, and related products used
to produce graphics for vehicles, signs and interior
surfaces. Other products include spill-control sorbents;
nonwoven abrasive materials for floor maintenanceand commercial cleaning; floor matting; natural andcolor-coated mineral granules for asphalt shingles; plus
fall protection equipment.

Corporate Profile | 126

Electronics and Energy Business
The Electronics and Energy segment serves customers
in electronics and energy markets, including solutions
that improve the dependability, cost-effectiveness, andperformance of electronic devices; electrical products,
including infrastructure protection; telecommunications
networks, and power generation and distribution.
This segment’s electronics solutions include the display
materials and systems business, which provides films
that serve numerous market segments of the electronic
display industry. 3M provides distinct products forfive market segments, including products for: 1) LCD
computer monitors 2) LCD televisions 3) handheld
devices such as cellular phones and tablets 4) notebook
PCs and 5) automotive displays. This segment also
provides desktop and notebook computer screen
filters that address display light control, privacy, andglare reduction needs. Major electronics products
also include packaging and interconnection devices;high performance fluids and abrasives used in the
manufacture of computer chips, and for coolingelectronics and lubricating computer hard disk drives;and high-temperature and display tapes. Flexible
circuits use electronic packaging and interconnection
technology, providing more connections in less space,and are used in ink-jet printer cartridges, cell phones
and electronic devices. This segment also includes thetouch systems products, including touch screens, touch
monitors, and touch sensor components.
This segment’s energy solutions include electrical
products, including infrastructure protection, telecommunications, and renewable energy. This segment serves
the worlds electrical and telecommunications markets,
including electrical utilities, electrical construction,
maintenance and repair, original equipment manufacturers (OEM), telecommunications central office, outsideplant and enterprise, as well as aerospace, military,
automotive and medical markets, with products thatenable the efficient transmission of electrical powerand speed the delivery of information. Products inthis segment include pressure sensitive tapes andresins, electrical insulation, a wide array of fiber-optic
and copper-based telecommunications systems for
rapid deployment of fixed and wireless networks, aswell as the 3M™ Aluminum Conductor Composite
Reinforced (ACCR) electrical power cable that increases
transmission capacity for existing power lines. This
segment also includes renewable energy component

3M 2016 Sustainability Reportsolutions for the solar and wind power industries, aswell as infrastructure products solutions that provide
municipalities both protection and detection solutions
for electrical, oil, natural gas, water, rebar and otherinfrastructure assets.
Health Care Business
The Health Care segment serves markets that include
medical clinics and hospitals, pharmaceuticals, dental
and orthodontic practitioners, health information
systems, and food manufacturing and testing. Products
and services provided to these and other markets
include medical and surgical supplies, skin healthand infection prevention products, inhalation andtransdermal drug delivery systems, oral care solutions(dental and orthodontic products), health information
systems, and food safety products. In April 2014, 3M
purchased all of the outstanding equity interests ofTreo Solutions LLC, headquartered in Troy, New York.
Treo Solutions LLC is a provider of data analytics andbusiness intelligence to healthcare payers and providers.
In March 2015, 3M acquired Ivera Medical Corp., amanufacturer of health care products that disinfectand protect devices used for access into a patient’s
bloodstream.
In the medical and surgical areas, 3M is a supplier of
medical tapes, dressings, wound closure products,
orthopedic casting materials, electrodes and stethoscopes. In infection prevention, 3M markets a variety ofsurgical drapes, masks and preps, as well as sterilization
assurance equipment and patient warming solutions
designed to prevent hypothermia in surgical settings.
Other products include drug delivery systems, suchas metered-dose inhalers, transdermal skin patches
and related components. Oral care solutions include
restoratives, adhesives, finishing and polishingproducts, crowns, impression materials, preventive
sealants, professional tooth whiteners, prophylaxis
and orthodontic appliances, as well as digital workflow
solutions to transform traditional impression and analog
processes. In health information systems, 3M develops
and markets computer software for hospital coding
and data classification, and provides related consulting
services. 3M provides food safety products that make it
faster and easier for food processors to test the microbiological quality of food.

Corporate Profile | 127

Consumer Business
The Consumer segment serves markets that include
consumer retail, office retail, office business to business,home improvement, drug and pharmacy retail, andother markets. Products in this segment include officesupply products, stationery products, construction andhome improvement products (do-it-yourself), homecare products, protective material products, certain
consumer retail personal safety products, and consumer
health care products.
Major consumer products include Scotch® brandproducts, such as Scotch® Magic™ Tape, Scotch® Glue
Stick and Scotch® Cushioned Mailer; Post-it® Products,
such as Post-it® Flags, Post-it® Note Pads, Post-it®
Labeling & Coverup Tape, and Post-it® Pop-up Notes
and Dispensers; construction and home improvement
products, including surface preparation and wood-finishing materials, Command™ Adhesive Products andFiltrete™ Filters for furnaces and air conditioners; homecare products, including Scotch-Brite® Scour Pads,
Scotch-Brite® Scrub Sponges, Scotch-Brite® Microfiber
Cloth products, O-Cel-O™ Sponges; protective material
products, such as Scotchgard™ Fabric Protectors;
certain maintenance-free respirators; certain consumer
retail personal safety products, including safety glasses,
hearing protectors, and 3M Thinsulate™ Insulation,
which is used in jackets, pants, gloves, hats and boots
to keep people warm; Nexcare™ Adhesive Bandages;
and ACE® branded (and related brands) elastic bandage,
supports and thermometer product lines.

3M Values
3M’s actions are guided by our corporate vision andvalues of uncompromising honesty and integrity. We
are proud to be recognized worldwide as an ethical andlaw-abiding company. As a company, we are committed
to sustainable development through environmental
protection, social responsibility and economic success.
Our guiding values include:•

Act with uncompromising honesty and integrityin everything we do.

•

Satisfy our customers with innovative technology
and superior quality, value and service.

•

Provide our investors an attractive return throughsustainable, global growth.

3M 2016 Sustainability Report•

Respect our social and physical environment
around the world.

•

Value and develop our employees’ diverse
talents, initiative and leadership.

•

Earn the admiration of all those associated with
3M worldwide.

Corporate Profile | 128

3M 2016 Sustainability Report

Corporate Governance | 129

Corporate Profile

Corporate GovernanceSee the Board’s leadership structure and responsibilities, the Board’s role in risk oversight and theprocess for stakeholder input.

The Company believes that good
corporate governance practices serve
34-46
51-55
the long-term interests of stockholders,strengthen the Board and management, and further
enhance the public trust 3M has earned from more thana century of operating with honesty and integrity.
G4

G4

•

Independent directors regularly meet in executive
sessions without management.

•

Independent directors have complete access tomanagement and employees.

•

Regularly refresh Board; added 6 new directors inpast 4 years; average director tenure is 6.8 years.

SD SD

Corporate GovernanceBest Practices
Board Independence•

Substantial majority of independent directors –twelve of our thirteen directors are independentof the Company and management – and all arehighly qualified.

Board Committee Independence
and Expertise•Committee independence – Only independent
directors serve on the Board’s committees withindependent committee chairs empowered toestablish committee agendas.

•

Committee executive sessions – at each regularlyscheduled meeting, members of the Audit
Committee, Compensation Committee, FinanceCommittee, and Nominating and GovernanceCommittee meet in executive session.

3M 2016 Sustainability Report

Corporate Governance | 130

3M Governance Structure
G4

SD

34

For further information regarding 3M’s governance practices, see 2016 Notice of Annual Meeting and Proxy
Statement. The following table provides an overview of our corporate governance practices.

3M Shareholders
3M Board of Directors
Corporate Auditing Compliance& Business Conduct

Chairman, President &Chief Executive Officer
3M Foundation Board(Independent Corporate
Contributions)Board Committee• Nominating and GovernanceCommittee• Audit Committee• Compensation Comittee• Finance Committee

Corporate Operating
Committee

Crisis Management
Committee

Corporate Staff Function• Center for Sustainability• EHS• Sourcing/Supply Chain• Finance• Information Technology• Engineering/Packaging• Human Resources• Community Affairs• Office of General Counsel• Public Affairs• Marketing/Sales/
Communications• Research and Development• Strategy and Corporate
Development• Security

Corporate Environmental,
Health & Safety (EHS)
Committee

Business Conduct
Committee

Business Group Management• Consumer• Electronics & Energy• Health Care
• Industrial• Safety & Graphics

Other Committees &Centers of Excellence

Area Management• Asia Pacific• Canada• Europe/Middle East/Africa• Latin America• United States

3M 2016 Sustainability Report•

Corporate Governance | 131

Financial expertise – All members of the Audit
Committee meet the NYSE listing standards forfinancial expertise, and six of the seven members
are “audit committee financial experts” under
SEC rules.

Stockholder Rights•

Annual election of all directors.

•

Majority voting for directors in uncontested
elections.

•

Proxy access – a stockholder, or a group of up to
20 stockholders, continuously owning for 3 years
at least 3 percent of our outstanding commonshares may nominate and include in our proxymaterials up to the greater of two directors and20 percent of the number of directors currently
serving, if the stockholder(s) and nominee(s)satisfy the bylaw requirements.

•

Established policies and criteria for director
nominations, including candidates recommended
by stockholders.

•No supermajority voting provisions in Bylaws or
Certificate of Incorporation.

•

Stockholders holding 25 percent of theoutstanding shares have the right to call a special
meeting.

•

No stockholders’ rights plan (also known as a“poison pill”).

•

Established protocol for stockholders tocommunicate with the independent Lead
Director, the chairs of the Audit, Compensation,
Finance, and Nominating and GovernanceCommittees of the Board, any of the otherindependent directors or all of the independent
directors as a group or the full Board.

•

Risk Oversight•

Broad risk oversight by the Board and its
committees, with committee-level risk analyses
reported to the full Board and senior-levelinternal auditor and Chief Compliance Officer
appointed by, and reporting directly to, the Audit
Committee.

Board Approved Long-Term Strategic
Plans and Capital Allocation Strategies•

Each year management presents to the Board,and the Board discusses and approves, detailed
long-term strategic plans for the Company,
the international business, and each of theCompany’s business groups. Each presentation
includes an overview of the business group, thefinancial performance, an assessment of theportfolio for growth opportunities using a SWOT
analysis (i.e., strengths, weaknesses, opportunities, and threats); strategic priorities to drive
the three key value creation levers—Portfolio
Management, Investing in Innovation, andBusiness Transformation; plans to drive the four
corporate fundamental strengths—Technology,
Manufacturing, Global Capabilities, andBrand; and the projected long-term financial
performance.

•

The Board also approves the long-term capital
structure of the Company to ensure that there issufficient capital to invest for future growth.
•

Stockholder Outreach and Engagement•

We maintain a vigorous stockholder engagement
program. During 2015, members of senior
management met with a cross-section ofstockholders owning approximately 35 percent
of our outstanding shares.

The feedback from those meetings wasshared with the Nominating and GovernanceCommittee and the Board and helped informthe Board’s decision to adopt proxy accessbylaws in November 2015.

The Company is committed to investing inorganic growth, most notably through capital
expenditures and research and development.
The Company has invested approximately $16
billion in capital expenditures and researchand development to support and fund organic
growth over the past 5 years. 3M has opened
six customer technical centers around the3M 2016 Sustainability Report

world, and a new, state-of-the-art researchand development laboratory in the UnitedStates.
• The capital allocation plans have flexibility
to respond quickly to strategic acquisition
opportunities that can strengthen the
Company’s portfolio. Over the past 5 years,
3M has invested approximately $6 billion
in strategic acquisitions to build upon andstrengthen its business portfolio for continued
future growth.
• The Company has a long history of returning
cash to stockholders, having paid nearly $10
billion in dividends over the past 5 years.
• Finally, share repurchases represent the lastcomponent of 3M’s capital allocation plans.
Over the past 5 years, 3M has returned
approximately $21 billion to stockholders via
share repurchases.

Director Orientation andContinuing Education••

Board orientation – Our orientation programs
familiarize new directors with 3M’s businesses,
strategic plans, and policies, and prepare themfor their role on their assigned committees.
Continuing education programs assist directors
in maintaining skills and knowledge necessary forthe performance of their duties. These programs
may be part of regular Board and Committee
meetings or provided by academic or otherqualified third parties.

Corporate Governance | 132

Compliance•

Code of Business Conduct and Ethics for
directors.

•

Code of Conduct for all employees, including ourChief Executive Officer, Chief Financial Officer,
and Chief Accounting Officer.

•

Disclosure committee for financial reporting.

•Disclosure of public policy engagement on our
Investor Relations Web site, under Governance— Governance Documents — “Political Activities
and Issue Advocacy,” including disclosure ofpolitical contributions and membership in key
trade associations where membership dues
allocated for lobbying purposes exceed $25,000.

Environmental Stewardship andSustainability•

Long-standing commitment to environmental
stewardship and sustainability.

•

2025 Sustainability Goals for raw materials,
water, and energy and climate, including
increasing wind and solar renewable energy to 25
percent of total electricity use by 2025.

•

Our Sustainability Report and 2025 Sustainability
Goals are available on our Web site at www.3M.
com, under About 3M — Sustainability.

Executive Compensation•

Annual advisory approval of executive compensation with approximately 96 percent of thevotes cast in favor of the Company’s executive
compensation program in 2015.

The Nominating and Governance Committee
conducts an annual evaluation of theperformance of the Board and each of its
committees. The results are shared with theBoard and help identify areas in which the Boardand its committees could improve performance.

•

Strong pay-for-performance philosophy.

•

Incentive compensation subject to clawback
policy.

•Robust stock ownership guidelines for executive
officers and stock retention policy for directors.

As part of the nomination process, theNominating and Governance Committee
annually evaluates each of the directors to ensure
our directors have the necessary skills andexperience to effectively oversee the Company.

•

Prohibition of hedging or pledging 3M stock bydirectors and executive officers.

•

No employment, severance, or change-in-control
agreements with any senior executives, including
the CEO.

Board and Committee Evaluations••

3M 2016 Sustainability Report•

Long-term incentive compensation linked tofinancial objectives of earnings per share growth,organic volume growth, return on invested
capital, and free cash flow conversion.

Sustainability Governance
The CEO has been granted, by the
Board of Directors, final responsibility
35-36
42, 45-47
for delegating the authority foreconomic, environmental and social topics from thehighest governance body to senior executives and other
employees. The authority is spelled out in ourManagement Guide. The CEO has been delegatedauthority in the development, approval, and updating of
the organization’s purpose, value or mission statements,
strategies, policies, and goals related to economic,
environmental and social impacts. As a practical matter,
issues may initially be raised through a variety of sources(functions, Board, external stakeholders) that might
prompt changes in these specific areas, and that may be
accomplished through standing functional, business or
strategic planning processes. Changes in the company’svalues, mission, or strategies are routinely reviewed with
the Company's Board of Directors.
G4

G4

SD SD

The company routinely reviews economic, environmental and social topics with the Board of Directors,
or committees of the Board to inform or seek theirguidance on major topics. The composition of the Board
itself also reflects expertise and experience across a
broad variety of economic, environmental or social
topics. The Board takes an active interest in managing all
economic, environmental and social impacts risks. Someare addressed at a full Board level while many others
are addressed routinely as part of Board committee
activities. The company, through several different
functional groups, maintains ongoing consultations witha variety of prospective stakeholders on a diversity ofmatters, and with the aid of 3rd party external experts
has reviewed the company’s position on impacts, risks
and opportunities. These risk topics are covered as partof the company’s Enterprise Risk Management initiative
and are routinely reviewed either with one of the Board’s
committees or, most recently, with the full Board of
Directors. Elements of these subjects are covered ateach of the eight yearly Board meetings.

Corporate Governance | 133

The Corporate Operating Committee, which iscomprised of the CEO and his direct reports, approves
3M-wide sustainability principles, strategy and goals,
as well as any associated major changes. Executive
Committees associated with the strategic sustainability
functions (composed of cross-functional members) help
set and approve relevant policies and provide direction
on executing the developed sustainability strategies.
For example, the Environmental Health and Safety (EHS)
Committee, appointed by the Corporate Operating
Committee, is composed of the following functions:•

Senior Vice President of Corporate Supply Chain
Operations•

Senior Vice President of Research andDevelopment and Chief Technology Officer•

Chief Sustainability Officer•

Vice President of Government Affairs•

Vice President of Medical•

Vice President of Compliance and BusinessConduct•

Vice President and General Manager of Materials
Resource Division•

Associate General Counsel, Supply Chain
and EHS

3M’s Sustainability Center of Excellence, led by our
Chief Sustainability Officer, collaborates with various
other global staff organizations and business units
to develop the corporate Sustainability strategy andgoals. In addition, 3M’s corporate staff groups provide
technical expertise to assist business groups andarea management in implementing and meeting thecorporate Sustainability strategy, policies and goals. The
formation of the Sustainability Center of Excellence in2013 demonstrates the corporation’s commitment tointegrate innovation and Sustainability for the benefitof our operations and customers. The primary role of
the Center of Excellence is to develop strategy, set
significant goals to advance and track progress and todrive sustainable actions throughout 3M and in collaboration with customers, partners and communities.

Corporate Governance Guidelines
The Board has adopted Corporate Governance
Guidelines which provide a framework for the effective

3M 2016 Sustainability Report

governance of the Company. The guidelines address
matters such as the respective roles and responsibilitiesof the Board and management, the Board’s leadership
structure, the responsibilities of the independent Lead
Director, director independence, the Board Membership
Criteria, Board committees, and Board and management
evaluation. The Board’s Nominating and GovernanceCommittee is responsible for overseeing and reviewing
the Guidelines at least annually and recommending
any proposed changes to the Board for approval. The
Corporate Governance Guidelines, the Certificate ofIncorporation and Bylaws, the charters of the Board
committees, the Director Independence Guidelines,
and the Codes of Conduct provide the framework forthe governance of the Company and are available on
our Web site at www.3M.com, under Investor Relations— Governance.

Executive Sessions
As an agenda item for every regularly scheduled Boardand committee meeting, independent directors regularly
meet in executive session, without the Chairman/CEOor other members of management present, to consider
such matters as they deem appropriate.
Board’s Leadership Structure
G4

G4

SD SD
38-39

43-44

The Board’s leadership structure ischaracterized by:•

a combined Chairman of the Board and CEO;•a strong, independent, and highly experienced
Lead Director with well-defined responsibilities
that support the Board’s oversight responsibilities;•a robust committee structure consisting entirelyof independent directors with oversight of various
types of risks; and•an engaged and independent Board.

The Board of Directors believes that this leadership
structure provides independent board leadership andengagement while deriving the benefits of having
our CEO also serve as Chairman of the Board. As theindividual with primary responsibility for managing theCompany’s day-to-day operations and with in-depth
knowledge and understanding of the Company, our
CEO is best positioned to chair regular Board meetings
as the directors discuss key business and strategic

Corporate Governance | 134

issues. Coupled with an independent Lead Director, thiscombined structure provides independent oversight
while avoiding unnecessary confusion regarding theBoard’s oversight responsibilities and the day-to-day
management of business operations.
The Board believes that adopting a rigid policy onwhether to separate or combine the positions ofChairman of the Board and CEO would inhibit theBoard’s ability to provide for a leadership structure thatwould best serve stockholders. As a result, the Board
has rejected adopting a policy permanently separatingor combining the positions of Chairman and CEO in its
Corporate Governance Guidelines, which are reviewed
at least annually and available on our Web site atwww.3M.com, under Investor Relations — Governance.
Instead, the Board adopted an approach that allows it, inrepresenting the stockholders’ best interests, to decide
who should serve as Chairman or CEO, or both, underpresent or anticipated future circumstances.
The Board believes that combining the roles of CEO andChairman contributes to an efficient and effective Board.
The Board believes that to drive change and continuous
improvement within the Company, tempered by respectfor 3M’s traditions and values, the CEO must havemaximum authority. The CEO is primarily responsible
for effectively leading significant change, improving
operational efficiency, driving growth, managing
the Company’s day-to-day business, managing thevarious risks facing the Company, and reinforcing the
expectation for all employees of continuing to build on
3M’s century- old tradition of uncompromising integrity
and doing business the right way.
The Board believes that the Company’s corporate
governance measures ensure that strong, independent
directors continue to effectively oversee the Company’s
management and key issues related to executive
compensation, CEO evaluation and succession planning,strategy, risk, and integrity. The Corporate Governance
Guidelines provide, in part, that:•Independent directors comprise a substantial
majority of the Board;•

Directors are elected annually by a majority votein uncontested director elections;•

Only independent directors serve on the Audit,
Compensation, Finance, and Nominating andGovernance Committees;3M 2016 Sustainability Report•

The committee chairs establish their respective
agendas;•The Board and committees may retain their own
advisors;•

The independent directors have complete accessto management and employees;••

Corporate Governance | 135

Lead Director approval authority with respect
to materials to be delivered to the directors inadvance of each Board meeting but also provides
a feedback mechanism so that the materials may
be improved for future meetings);

The independent directors meet in executive
session without the CEO or other employees
during each regular Board meeting; and•Has the authority to call meetings of the
independent directors;•

Communicates Board member feedback to the
Chairman/CEO (except that the chair of theCompensation Committee leads the discussionof the Chairman/CEO’s performance andcommunicates the Board’s evaluation of that
performance to the Chairman/CEO);•If requested by major stockholders, ensures that
he is available, when appropriate, for consultationand direct communication; and•Performs such other duties as requested by the
independent directors.

The Board and each committee regularly conduct
a self-evaluation to determine whether it and its
committees function effectively.

The Board has also designated one of its members toserve as Lead Director, with responsibilities (describedin the next section) that are similar to those typically
performed by an independent chairman.

Independent Lead Director
The Board has designated one of its members to serve
as a Lead Director, with responsibilities that are similar to
those typically performed by an independent chairman(“Lead Director”). Michael L. Eskew was appointed
Lead Director by the independent directors effective
November 12, 2012, succeeding Dr. Vance Coffman
who had served as Lead Director since 2006. Michael
Eskew is a highly experienced director, currently servingon the boards of The Allstate Corporation, International
Business Machines Corporation, and Eli Lilly andCompany, and was the former Chairman and CEO of
United Parcel Service, Inc. His responsibilities include,
but are not limited to, the following:•

Presides at all meetings of the Board at which
the Chairman is not present, including executive
sessions of the independent directors;•

Acts as a key liaison between the Chairman/CEO
and the independent directors;•

Approves the meeting agendas for the Board, andapproves the meeting schedules to assure that
there is sufficient time for discussion of all agenda
items;•

Has the authority to approve the materials tobe delivered to the directors in advance ofeach Board meeting and provides feedback
regarding the quality, quantity, and timelinessof those materials (this duty not only gives theCommunication with Directors(Stockholder and Stakeholder Input)
The Board of Directors has adopted thefollowing process for stockholders and other37
interested parties to send communications tomembers of the Board. Stockholders and otherinterested parties may communicate with the Lead
Director, the chairs of the Audit, Compensation, Finance,and Nominating and Governance Committees of theBoard, or with any of our other independent directors, or
all of them as a group, by sending a letter to thefollowing address: Corporate Secretary, 3M Company,
3M Center, Building 220-14W-06, St. Paul, MN
55144-1000.
G4

SD

Director Independence
The Board has adopted a formal set of Director
Independence Guidelines with respect to the determination of director independence, which either conformto or are more exacting than the independence
requirements of the NYSE listing standards, andthe full text of which is available on our Web site atwww.3M.com, under Investor Relations — Governance.
In accordance with these Guidelines, a director or
nominee for director must be determined to have nomaterial relationship with the Company other than3M 2016 Sustainability Reportas a director. The Guidelines specify the criteria bywhich the independence of our directors will be
determined, including strict guidelines for directors
and their immediate family members with respect topast employment or affiliation with the Company or
its independent registered public accounting firm.
The Guidelines also prohibit Audit and Compensation
Committee members from having any direct or indirect
financial relationship with the Company, and restrict
both commercial and not-for-profit relationships of all
directors with the Company. Directors may not be given
personal loans or extensions of credit by the Company,
and all directors are required to deal at arm’s lengthwith the Company and its subsidiaries, and to disclose
any circumstance that might be perceived as a conflictof interest.
In accordance with these Guidelines, the Board
undertook its annual review of director independence.
During this review, the Board considered transactions
and relationships between each director, or any memberof his or her immediate family and the Company andits subsidiaries and affiliates in each of the most recent
three completed fiscal years. The Board also considered
whether there were any transactions or relationships
between the Company and a director or any membersof a director’s immediate family (or any entity of which a
director or an immediate family member is an executive
officer, general partner, or significant equity holder).
The Board considered that in the ordinary course ofbusiness, transactions may occur between the Company
and its subsidiaries and companies at which some ofour directors are or have been officers. In particular, theBoard considered the annual amount of sales to 3M foreach of the most recent three completed fiscal years byeach of the companies where directors serve or have
served as an executive officer, as well as purchases by
those companies from 3M. The Board determined thatthe amount of sales and purchases in each fiscal year
was below one percent of the annual revenues of each of
those companies, the threshold set forth in the Director
Independence Guidelines. The Board also consideredcharitable contributions to not-for-profit organizations
with which our directors or immediate family members
are affiliated, none of which approached the threshold
set forth in our Director Independence Guidelines.

Corporate Governance | 136

L. Barbour, Thomas “Tony” K. Brown, Vance D.
Coffman, David B. Dillon, Michael L. Eskew, Herbert
L. Henkel, Muhtar Kent, Edward M. Liddy, Gregory
R. Page, Robert J. Ulrich, and Patricia A. Woertz. The
Board has also determined that members of the Audit
Committee and Compensation Committee received nocompensation from the Company other than for service
as a director. Inge G. Thulin, Chairman of the Board,
President and Chief Executive Officer, is considered
to not be independent because of his employment by
the Company.

Board Membership Criteria
Our culture of innovation is powered by thecreativity of our diverse employees. You can40
see it in the variety of backgrounds,
perspectives, and skills our people bring to the collaborative effort of creating world-pleasing products. The
Nominating and Governance Committee of our Board
identifies individuals whom the Committee believes are
qualified to become Board members in accordance with
our Board Membership Criteria contained in our Proxy
Statement. Selected individuals are recommended to theBoard for nomination to stand for election at the next
meeting of stockholders of the Company in which
directors will be elected.
G4SD

3M’s Corporate Governance Guidelines contain Board
Membership Criteria which include a list of skills andcharacteristics expected to be represented on 3M’s
Board. The Nominating and Governance Committee
periodically reviews with the Board the appropriate skills
and characteristics required of Board members given
the current Board composition. It is the intent of theBoard that the Board, itself, will be a high performanceorganization creating competitive advantage for
the Company. To perform as such, the Board will becomposed of individuals who have distinguished recordsof leadership and success in their arena of activity
and who will make substantial contributions to Board
operations and effectively represent the interests ofall stockholders. The Committee’s and the Board’s
assessment of Board candidates includes, but is not
limited to, consideration of:•

As a result of this review, the Board affirmatively
determined that the following directors are independent
under these Guidelines: Linda G. Alvarado, Sondra

Roles in and contributions valuable to thebusiness community;

3M 2016 Sustainability Report

•

•

•

Personal qualities of leadership, character,judgment, and whether the candidate possesses
and maintains throughout service on the Board a
reputation in the community at large of integrity,
trust, respect, competence, and adherence to thehighest ethical standards;
Relevant knowledge and diversity of backgroundand experience in business, manufacturing,
technology, finance and accounting, marketing,international business, government, and otherareas; andWhether the candidate is free of conflicts and has
the time required for preparation, participation,
and attendance at all meetings.

In addition to these minimum requirements, theCommittee will also evaluate whether the nominee’s
skills are complementary to the existing Board members’
skills, the Board’s needs for particular expertise incertain areas, and will assess the nominee’s impact on
Board dynamics and effectiveness.
In 2015, David Dillon was nominated and elected to the
3M Board of Directors. Mr. Dillon retired as Kroger’s
Chairman of the Board on December 31, 2014, where
he was Chairman of the Board since 2004 and was
the Chief Executive Officer from 2003 through 2013.
From 1995 to 2003, he served as President, and he waselected Executive Vice President in 1990. He also serveson the board of the Union Pacific Corporation.

Diversity
The Board of Directors values diversity as a factor in
selecting nominees to serve on the Board because its
experience is that diversity provides significant benefit
to the Board and the Company. Although there is no
specific policy on diversity, the Committee considers
the Board Membership Criteria in selecting nominees
for directors, including diversity of background andexperience. Such considerations may include gender,
race, national origin, functional background, executive or
professional experience, and international experience.
An inclusive culture at 3M is built on our Human
Resource Principles – to respect the dignity and worthof individuals; encourage the initiative of each employee;
challenge individual capabilities; and provide equal

Corporate Governance | 137

opportunity. 3M is continuously focusing on building andmaintaining an inclusive culture.
In 2015, there were two women on 3M's Boardof Directors: Linda Alvarado and Sandra Barbour,
representing 20% of the Board. In the first half of 2016,
Patricia Woertz joined as the third woman director.
Linda Alvarado is the President and Chief Executive
Officer of Alvarado Construction, Inc., a Denverbased commercial general contractor, construction
management, and development company. In addition
to being on the Board of 3M, Ms. Alvarado also serveson the Board of Pitney Bowes, Inc. Ms. Alvarado is therecipient of numerous awards including being namedby the Hispanic Business Magazine and Latino Leaders
Magazine as one of the “100 Most Influential Hispanics
in America” and 2003 Inducted in the National Women’s
Hall of Fame. Linda Alvarado is not seeking re-election
and will end her service on the Board on May 10, 2016,
when her term expires.
Sondra Barbour is the Executive Vice President ofInformation Systems & Global Solutions at Lockheed
Martin Corporation, a high technology aerospace anddefense company. Since joining Lockheed Martin in
1986, Ms. Barbour has served in various leadershipcapacities and has extensive technology experience,notably in the design and development of large-scale
information systems. In 2013 she was appointed
Executive Vice President, Information Systems & Global
Solutions. From 2008 to 2013 she served as SeniorVice President, Enterprise Business Services and Chief
Information Officer. Prior to that role, she served as Vice
President, Corporate Shared Services from 2007 to2008 and Vice President, Corporate Internal Audit from2006 to 2007.
Patricia Woertz joined the 3M Board in the first half of2016. She is retired Chairman of the Board and Chief
Executive Officer, Archer-Daniels-Midland Company,an agricultural processor and food ingredient provider.
Ms. Woertz joined ADM as Chief Executive Officer andPresident in April 2006, and was named Chairman of theBoard in February 2007. She served as Chief Executive
Officer until December 2014, and Chairman of the Board
until December 2015. Before joining ADM, Ms. Woertz
held positions of increasing importance at Chevron
Corporation and its predecessor companies. Ms. Woertz
served on the President’s Export Council 2010-2015 and3M 2016 Sustainability Reportchaired the U.S. section of the U.S.-Brazil CEO Forumfrom 2013-2015.
In 2015, Kimberly Price joined 3M’s Corporate Officers
along with Julie Bushman and Marlene McGrath.
Kimberly was named 3M’s senior vice president ofCorporate Communications and Enterprise Services. She
joined the company’s Corporate Operating Committee
and reports directly to President, Chairman of the Board
and CEO Inge Thulin. Kimberly has been named as aCentennial Girl Scout Honoree, Minnesota Attorney of
the Year, Diversity Journal Woman Worth Watching,
one of Savoy’s Most Influential Women in Corporate
America, STEM Connector 100 Diverse Corporate
Leaders and United Negro College Fund Masked Ball
Awardee. She helps lead and serves in local, national andinternational organizations, including the Greater Twin
Cities United Way, the Executive Leadership Council andthe International Women’s Forum.
For more information on the roles and responsibilities
of Lead Independent Director and each of the Board
Committees, refer to 3M 2016 Notice of Annual Meeting
and Proxy Statement, page 14, Director Skills andExperience.

Board Compensation
G4

SD

51-55

Information pertaining to compensation rules
and figures for board members.

Role of the Compensation Committee and its Advisors
3M provides compensation to its executives torecognize their contributions to the success of its
business and reward them for delivering performancethat meets the growth, profitability, and other objectivesof the Company. All elements of this compensation aredetermined by the Compensation Committee, which iscomposed solely of independent nonemployee directors.
In addition, the Committee’s decisions concerning
the compensation of 3M’s Chief Executive Officer are
subject to ratification by all of the independent membersof the Board of Directors.
The Committee regularly reviews the design of and risks
associated with the Company’s executive compensation
program and, with the assistance of its independentcompensation consultant, makes decisions concerningchanges in the executive compensation program whenappropriate.

Corporate Governance | 138

3M’s executive officers assist the Committee withthe process of determining the compensation of theCompany’s executives. In particular, Mr. Thulin, assisted
by 3M’s Senior Vice President, Human Resources,
performs an annual performance evaluation of eachof 3M’s senior executives whose compensation isdetermined by the Committee. The results of theseannual performance evaluations form the basis for Mr.
Thulin’s recommendations to the Committee as to theannual merit base salary and target annual incentive
compensation increases for such senior executives,
as well as the size of their annual long-term incentive
compensation awards. The Committee discusses theserecommendations with Mr. Thulin at its meetings prior
to making its decisions on any change to an executive’s
annual base salary or target annual incentive compensation or any long-term incentive compensation awards.
The Committee reviews and approves annual
performance goals and objectives for 3M’s Chief
Executive Officer. Acting through its Chairman, theCommittee also conducts and discusses with theindependent members of the Board of Directors anannual evaluation of the Chief Executive Officer’s
performance against such goals and objectives. Finally,
the Committee, assisted by its independent compensation consultant, annually reviews and approves (basedon this annual evaluation), subject to ratification by the
independent members of the Board of Directors, thecompensation of the Chief Executive Officer.
In May 2015, the Nominating and GovernanceCommittee considered a board compensation study
prepared by Frederic W. Cook & Co., Inc. As a resultof that study, the Committee recommended and theBoard approved to maintain the annual compensation for
nonemployee directors of $280,000. The annual cash
retainer of $120,000 remains unchanged. Approximately
43 percent of the annual compensation (or $120,000)
is payable in cash in four quarterly installments andapproximately 57 percent of the annual compensation(or $160,000) is payable in common stock after the
Annual Meeting.
The chairs of the Finance and Nominating andGovernance Committees each receive an additional
annual fee of $15,000, the chair of the Compensation
Committee receives an additional annual fee of$25,000, and the Lead Director receives an additional
annual fee of $30,000. There are no meeting fees. In
lieu of the cash fees, a director may elect to receive3M 2016 Sustainability Report

Corporate Governance | 139

Elements
of 2015
Compensation
Elements
of 2015
total Total
direct Directcompensation

The following shows the breakdown of reported 2015 compensation for our CEO and the average of our other named

The following shows the breakdown of reported 2015 compensation for our CEO and the average of our other named
executive officers as disclosed in this Proxy Statement (“NEOs”).
executive officers as disclosed in this Proxy Statement (“NEOs”).
Base SalaryCEO· Subject to achievement of three businessobjectives over a 12-month period

Base
Salary10%

Stock
Options
37%

AIP
16%

· Maximum payout capped at 200% of target
Long-Term Incentives (LTI)· Initial value split equally between stock options and

%

PSA
37%

performance share awards· Stock Options

4%

Base
Salary
16%

AIP
14%
Stock
Options
35%

L TI

74

Other NEOs (Average)

Annual Incentive Plan (AIP)

rmance-based P
rfo
ay
e
P
8

y

%
90

L TI

formance-base
Per
d

Pa

Only component of total direct compensation thatis not “at risk”

AIP
14%

70

%

PSA
35%

AIP
16%

-Provide value only if stock price increases-Ratable vesting over three years· Performance Share Awards (PSA)-Subject to achievement of four independent
performance criteria-Reward performance over three years

common stock of 3M. Nonemployee directors may
also voluntarily defer all or part of their annual cash
fees or stock awards until they cease to be membersof the Board.
In 2015, 3M delivered another strong year in termsof both financial performance and returns to its
stockholders. 3M remains one of the most successfulcompanies on the planet, and compared to ourpeers and the median, we continue to be one of the­top-performing companies. These results reflected thestrong performance of the Company’s leadership team,including the Named Executive Officers, and impacted
their incentive compensation.
We remain committed to executing our playbook,controlling the controllable, and making investments
for long-term success. We are building our company
for efficient growth in 2016 and beyond. As always, ourexecutive compensation aligns with how 3M performs.

For additional information about 3M Compensation
Committee, please visit our 3M 2016 Notice of Annual
Meeting and Proxy Statement, page 26.
Stock Ownership Guidelines
The Company’s stock ownership guidelines apply to all
Section 16 officers of the Company and are designed
to increase an executive’s equity stake in 3M and moreclosely align his or her financial interests with those of
3M’s stockholders.
The guidelines provide that the Chief Executive Officer
should attain beneficial ownership of 3M stock equal tosix times his or her annual base salary, the Executive Vice
Presidents and a majority of the Senior Vice Presidents
should attain beneficial ownership of 3M stock equal
to three times their annual base salaries, and Vice
Presidents and the remaining Senior Vice Presidents
should attain beneficial ownership of 3M stock equal3M 2016 Sustainability Reportto two times their annual base salaries. The stock
ownership guidelines provide that the number of sharesrequired to be beneficially owned by each covered
executive will be calculated based on such executive’s
annual base salary at the time of initial appointment to a
Section 16 position and at the time of a position change
from one multiple level to another multiple level, andthe fair market value of 3M common stock at that time.
Beginning December 31, 2013, and every three years
thereafter, the stock ownership guidelines require theCompany to recalculate the number of shares required
to be beneficially owned by each covered executive
using their annual base salary and fair market value of
3M common stock at the recalculation date.
The stock ownership guidelines provide that eachcovered executive should attain the required beneficial
ownership of 3M stock within five years of their initial
appointment to a Section 16 position or a positionchange from one multiple level to another multiple level.
The guidelines also provide that each covered executive
whose required level of ownership increases as a resultof a periodic recalculation will have three years fromthe recalculation date (or the balance of the five-year
period since the date of their initial appointment orlatest position change, if longer) to attain the required
level of ownership. However, if a covered executive is
not making adequate progress to meet the required
level of ownership within the applicable time period,
the guidelines provide that he or she will be required tohold and not sell a sufficient number of the after-tax 3M
shares received upon the next payout of performance
shares to be on track to satisfy the required ownershiplevel. All of 3M’s executives covered by the guidelines
either have met or are on track to meet the required levelof ownership within the applicable time periods.
For additional information about 3M Stock Ownership
Guidelines, please visit our 3M 2016 Notice of Annual
Meeting and Proxy Statement, page 52.
Prohibition of Hedging and Pledging
The Company’s stock trading policies prohibit theCompany’s executive officers from (i) purchasing
any financial instrument that is designed to hedge
or offset any decrease in the market value of theCompany’s common stock, including prepaid variableforward contracts, equity swaps, collars and exchange
funds; (ii) engaging in short sales related to theCompany’s common stock; (iii) placing standing orders;

Corporate Governance | 140(iv) maintaining margin accounts; and (v) pledging 3M
securities as collateral for a loan. All transactions in 3M
securities by directors and executive officers must be
pre-cleared with the Deputy General Counsel.
Policy on Reimbursement of Incentive Payments(‘‘Clawback’’)
The Company’s Board of Directors has adopted apolicy requiring the reimbursement of excess incentive
compensation payments made to an executive in theevent that 3M is required to make a material restatementof its financial statements. This policy applies to allsenior executives of the Company including all of theNamed Executive Officers. This policy does not require
any misconduct on the part of the covered executive
whose excess incentive compensation payment is being
reimbursed. As long as the Company is required to makea material restatement of its financial statements thatcauses an incentive compensation payout to be higher
than it should have been, the Company may seek torecover the overpayment from all affected executives
irrespective of whether their conduct contributed to theneed for the restatement. The Company established thispolicy prior to the passage of the Dodd-Frank Act, which
establishes new requirements for such policies. Uponissuance by the Securities and Exchange Commission of
final implementing regulations for the Dodd-Frank Act’s
requirements, the Company will make any changes to its
existing policy as may be required to comply with thoseregulations.
Factors Creating Alignment Between Pay and
Performance and Balancing Risk
3M’s executive compensation program is designed
to maintain a strong alignment between corporate
performance and executive compensation by tying
incentive compensation to the achievement of
performance metrics that increase the Company’s
long-term value. The incentive compensation portionof the program rewards long-term value creation while
also protecting the Company and its stockholders
from inappropriate risk-taking and conflicts between
the interests of the executives and the interests of
the Company and its stockholders. Highlights of the
program include:•

A large portion of each executive’s Total Direct
Compensation (cash plus long-term incentives) is
performance-based, varying from 90 percent for3M 2016 Sustainability Report

Chief Executive Officer Inge Thulin to an averageof 84 percent for the other Named Executive
Officers;••

The incentive compensation opportunities
provided to the Company’s executives are basedon multiple performance- based metrics, which
are focused primarily on growth in revenue andearnings, increase in 3M’s stock price, and theefficient use of capital; andStock ownership guidelines that require covered
executives to own amounts of Company stock
having a value exceeding a specified multiple oftheir base salary.

For additional information about Elements of theCompensation Program, please visit our 3M 2016 Noticeof Annual Meeting and Proxy Statement, page 41.
Compensation Best Practices
Our compensation program is designed to provide
appropriate performance incentives and avoid compensation practices that do not promote the interests of ourstockholders.
WE DO•

Maintain a strong alignment between
corporate performance and compensation.

•

Conduct an annual assessment to identify andmitigate risks.

•

Have a comprehensive clawback policy.

•

Use an independent compensation consultant
retained directly by the Committee.

•

Limit the number and amount of executive
perquisites.

•

Prohibit our executive officers from hedging orpledging 3M common stock.

•

Maintain robust stock ownership guidelines
applicable to all of our executive officers.

•

Conduct competitive benchmarking to alignexecutive compensation with market.

WE DO NOT•

Have employment, severance, or change incontrol agreements with any of our executive
officers.

•

Provide tax gross-ups on executive perquisites.

Corporate Governance | 141•

Have agreements that would provide automatic“single-trigger” accelerated vesting of equity
compensation or excise tax gross-up payments
to any of our executive officers in the event of achange in control.

•

Provide dividends or dividend equivalents on
unearned performance share awards.

•

Reprice stock options without the approvalof 3M stockholders, except for “anti-dilution”
adjustments (such as adjustments for stock splits,
spinoffs, etc.)

Benchmarking
In order to provide competitive Total Direct
Compensation, 3M annually surveys the executive
compensation practices of a large group of comparator
companies (approximately 170, although the number
and identity of the companies may vary from year toyear). Survey data is statistically regressed to recognize
the different sizes of the comparator companies (basedon annual revenues) as compared to the size of 3M.
The survey data is obtained from three consulting
firms (Aon Hewitt, Frederic W. Cook & Co., Inc., andTowers Watson). The survey comparator group consistsof companies in the Standard & Poor’s 500 Index(excluding financial services companies) and/or othercompanies with annual revenue exceeding $20 billion
that participate in the three consultants’ executive
compensation surveys. By using survey data coveringa large number of comparator companies, 3M is able
to conduct a rigorous benchmarking process withmore complete and reliable data for each executive
position benchmarked. The Committee does notreview the identity of the companies in this survey
comparator group.
In addition, Aon Hewitt and Frederic W. Cook & Co.,
Inc. provide pay data and information on the executive
compensation practices at the companies in 3M’s
executive compensation peer group. This pay data isused by the Committee to assess the reasonablenessof the benchmarking results for each executive position
benchmarked, helping to ensure that the Company’scompensation objectives are being met. 3M’s executive
compensation peer group consists of the following
18 companies (which remain the same as in theprevious year), as recommended by the Committee’s
independent compensation consultant and approved by
the Committee:

3M 2016 Sustainability Report

The Procter & Gamble Company		
Johnson & Johnson			
United Technologies Corporation
Dow Chemical Company			Caterpillar Inc.				
Honeywell International Inc.
Deere & Company
Medtronic plc
E. I. du Pont de Nemours and Company
Emerson Electric Co.
Eaton Corporation plc
Danaher Corporation
Kimberly-Clark Corporation
Illinois Tool Works Inc.
TE Connectivity Ltd.
Parker-Hannifin Corporation
Tyco International plc
Corning Incorporated
The companies in this executive compensation peergroup were selected because (1) their performance ismonitored regularly by the same market analysts whomonitor the performance of 3M (investment peers),
and/or (2) they meet criteria based on similarity of
their business and pay models, market capitalization(based on an eight-quarter rolling average), and annual
revenues.
Use of Benchmarking Information
The Compensation Committee considers the pay datafrom the Benchmarking Groups when determining each
executive’s Total Direct Compensation. For executives
whose performance meets the Company’s expectations,the Committee aims to provide them with target Total
Cash Compensation that is at or very close to themedian of the corresponding target compensation paid
to executives in the Benchmarking Groups, and withlong-term incentive compensation delivered throughannual grants having values that are within a range of
80 to 120 percent of the median of the corresponding
compensation values provided to executives in the
Benchmarking Groups. Executives whose performance
consistently exceeds the Company’s expectations may
receive Total Cash Compensation of 120 to 125 percentof the median of the corresponding compensation paid
to executives in the Benchmarking Groups. Executives
whose performance far exceeds the Company’s

Corporate Governance | 142

expectations may also receive annual long-term
incentive compensation grants having values that arewithin a range of 125 to 160 percent of the median of
the corresponding compensation values provided to
executives in the Benchmarking Groups.
The Committee also uses information on the executive
compensation practices at companies in the executive
compensation peer group when considering designchanges to the Company’s executive compensation
program. Overall, the Company believes that use of thisinformation from the Benchmarking Groups enables
the Committee to create better alignment between
executive pay and performance and to help ensure that
3M can attract and retain high-performing executive
leaders.
For additional information about How the Committee
Uses Benchmarking Information, please visit our 3M
2016 Notice of Annual Meeting and Proxy Statement,
pages 44-45.
Compensation Program Elements
The compensation program for 3M’s executives consistsof the following elements:•base salary;•short-term cash incentive in the form of an annual
performance-based award opportunity; and•long-term equity incentives in the form of annual
awards of performance shares and stock options,and in certain circumstances (for purposes ofhiring or retaining key talent, for example), grantsof restricted stock or restricted stock units.

3M’s executives also participate in various benefit plans
made available to most of 3M’s U.S. employees, areeligible to participate in three deferred compensationplans (which enable them to save for retirement or otherfinancial planning purposes), and receive certain otherbenefits, each of which is described in the All Other
Compensation Table. The entire program applied toapproximately 100 executives during 2015, including allof the Named Executive Officers.
The 2015 Total Direct Compensation of the Named
Executive Officers was apportioned among theseelements, and how these elements relate to the strategic
business goals of the Company. This table also reflects
the relative balance among the elements as well as

3M 2016 Sustainability Report

the alignment of their compensation with the goalof creating long-term value for the Company and its
stockholders.
Base Salary
3M pays each of its executives a base salary incash on a monthly basis. The amount of this basesalary is reviewed annually, and does not vary withthe performance of the Company. Base salaries aredesigned to compensate the executives for their normal
day-to-day responsibilities, and it is the only componentof their compensation that is considered to be fixedrather than variable in nature.
Annual Incentive
3M provides its executives with annual incentive
compensation through plans that are designed to aligna significant portion of their Total Cash Compensation
with the financial performance of the Company andits business units. Each executive is assigned a target
amount of annual incentive compensation as part ofhis or her Total Cash Compensation, but the amount ofannual incentive compensation actually paid depends
on the performance of 3M and its relevant business
units as well as their individual performance. For Mr.
Thulin, annual incentive compensation represented
61 percent of his target Total Cash Compensation for2015. For 3M’s other Named Executive Officers, annual
incentive compensation represented from 43 percent
to 50 percent of their target Total Cash Compensationfor 2015.
3M’s Annual Incentive Plan (AIP) offers eligible
employees the opportunity to earn short-term incentive
compensation based on three performance metrics,
which are weighted as indicated:•

Local Currency Sales (of 3M or a business unit,
as applicable) vs. plan for the current year (50percent);•

Economic Profit (of 3M or a business unit, asapplicable) vs. plan for the current year (20percent effective for 2015); and•3M Economic Profit vs. the prior year (30 percent
effective for 2015).

The amount actually paid to an eligible employee fora particular year may range from 0 percent to 200
percent of the employee’s target amount for that year.

Corporate Governance | 143

The amount of annual incentive compensation actually
paid to an eligible employee may be increased by up to
30 percent or be reduced by up to 100 percent based on
the employee’s individual performance during that year.
Individual performance takes into account both quantitative (financial results, for example) and qualitative(market and economic circumstances, for example)
factors. In no event, however, may the total amount
paid to an eligible employee exceed 200 percent of theemployee’s target amount for the year.
While the annual incentive compensation earned bymost 3M executives is determined under the AIP, theannual incentive compensation earned by 3M’s Named
Executive Officers, as well as the other senior executives
whose compensation is decided by the Committee, isdetermined under the Executive Plan approved by 3M’s
stockholders at the 2007 Annual Meeting. A total of 18
3M senior executives participated in this Executive Plan
during 2015. This Executive Plan, which is intended toprovide compensation that is exempt from the $1 million
annual deduction limit of Section 162(m) of the Internal
Revenue Code, provides performance-based compensation for which the performance goal is the Company’s
Adjusted Net Income.
The Executive Plan does provide the Committee withdiscretion to determine the amount of annual incentive
compensation paid to 3M’s Named Executive Officers
and its other senior executives. The Executive Planestablishes a maximum amount of annual incentive
compensation that may be earned by each covered
executive for a year (a percentage of the Company’s
Adjusted Net Income for such year) and then theCommittee utilizes this discretion to pay each covered
executive less than this maximum amount based on suchfactors as it deems relevant. Since the Executive Plan
was first adopted in 2007, the Committee has rarely
used this discretion to pay a covered executive anything
more or less than the same amount such executive
would have received had he or she been participatingin the broad-based AIP (including the individual
performance multiplier).
In determining the amount of annual incentive compensation paid to a covered executive, the executive’s
individual performance is considered based upon theannual performance evaluation that Mr. Thulin, assisted
by 3M’s Senior Vice President, Human Resources, doesfor each covered executive (other than himself) and theannual performance evaluation that the Compensation

3M 2016 Sustainability Report

Committee acting through its Chairman does for
Mr. Thulin. These performance evaluations are done
according to 3M’s overall performance assessment andmanagement processes, which involve setting annual
financial and non-financial goals and objectives for eachindividual and then assessing the individual’s overall
performance against these goals and objectives at theend of the year.
Long-term Incentives
3M provides long-term incentive compensation toits executives through the Long-Term Incentive Planapproved by 3M’s stockholders at the 2008 Annual
Meeting. This is a typical omnibus-type plan that
authorizes the Committee to grant stock options,
restricted stock, restricted stock units, stock
appreciation rights, performance cash, performance
shares, and other stock awards to management
employees of the Company. The Company provides its
executives with this long-term incentive compensation
based on 3M common stock in order to effectively
motivate such executives to build long-term
stockholder value.

Corporate Governance | 144

Say on Pay Advisory Approval of Executive
Compensation
As required by Section 14A of the Securities ExchangeAct, in 2015 the Company conducted an annual advisory
vote of stockholders with respect to the compensationof its Named Executive Officers.
At the Company’s Annual Meeting of Stockholders
held on May 12, 2015, approximately 96 percent of
the shares that were voted on this item approved thecompensation of the Company’s Named Executive
Officers as disclosed in the 2015 Proxy Statement. While
the approval was advisory in nature, the Committee hastaken note of this very strong stockholder support andviews the outcome as confirmation that stockholders
generally believe that the pay of the Named Executive
Officers is appropriately aligned with their performanceand the performance of the Company as well as theinterests of 3M’s stockholders. As a consequence, theresults of this vote have not caused the Committee
to make any changes in either the executive compensation program or the compensation of any Named
Executive Officer.

3M 2016 Sustainability Report

3M Board of Directors | 145

Corporate Profile

3M Board of Directors
Inge G. Thulin,
Chairman of the Board,
President and Chief Executive Officer
Chairman of the Board, President and Chief Executive
Officer of 3M Company. Mr. Thulin served as President
and Chief Executive Officer of 3M Company fromFebruary 24, 2012, to May 8, 2012. Mr. Thulin served
as the Company's Executive Vice President and Chief
Operating Officer from May 2011 to February 2012, withresponsibility for all of 3M's business segments andInternational Operations. Prior to that, he was Executive
Vice President of International Operations from 2004
to 2011. Mr. Thulin also has held numerous leadership
positions in Asia Pacific, Europe and Middle East, andacross multiple businesses. Mr. Thulin is on the boardof the following public company in addition to 3M:
Chevron Corporation.

joining Lockheed Martin in 1986, Ms. Barbour has
served in various leadership capacities and has extensive
technology experience, notably in the design anddevelopment of large-scale information systems. In 2013
she was appointed Executive Vice President, Information
Systems & Global Solutions. From 2008 to 2013 sheserved as Senior Vice President, Enterprise Business
Services and Chief Information Officer, heading all of thecorporation's internal information technology operations,
including protecting the company's infrastructure andinformation from cyber threats. Prior to that role she
served as Vice President, Corporate Shared Services
from 2007 to 2008 and Vice President, Corporate
Internal Audit from 2006 to 2007 providing oversightof supply chain activities, internal controls, and risk
management.
Director since 2014.

Director since 2012.

Linda G. Alvarado,
President and Chief Executive Officer,
Alvarado Construction, Inc.
President and Chief Executive Officer, Alvarado
Construction, Inc., a Denver based commercial generalcontractor, construction management and development
company. In 1976, Ms. Alvarado founded Alvarado
Construction, Inc. and has overseen the growth ofthat enterprise as a commercial general contracting
and design/build development firm conducting
business across the United States and internationally.
Ms. Alvarado is on the board of the following publiccompany in addition to 3M: Pitney Bowes, Inc.
Director since 2000. Linda Alvarado is not seeking re-election
and will end her service on the Board on May 10, 2016, when
her term expires.

Sondra L. Barbour,
Executive Vice President, Information Systems & Global
Solutions, Lockheed Martin Corporation
Executive Vice President, Information Systems &Global Solutions, Lockheed Martin Corporation, a hightechnology aerospace and defense company. Since

Thomas K. Brown,
Retired Group Vice President, Global Purchasing,
Ford Motor Company
Retired Group Vice President, Global Purchasing, Ford
Motor Company, a global automotive industry leader.
Mr. Brown served in various leadership capacities in
global purchasing since joining Ford in 1999. In 2008, hebecame Ford's Group Vice President, Global Purchasing,with responsibility for approximately $90 billion of
production and non-production procurement for Ford
operations worldwide. He retired from Ford on August
1, 2013. From 1997 to 1999 he served in leadership
positions at United Technologies Corporation, including
its Vice President, Supply Management. From 1991
to 1997 he served as Executive Director, Purchasing
and Transportation at QMS Inc. From 1976 to 1991 heserved in various managerial roles at Digital Equipment
Corporation. Mr. Brown is on the boards of the following
public companies in addition to 3M: ConAgra Foods,
Inc. and Tower International, Inc.
Director since 2013.

3M 2016 Sustainability Report

Vance D. Coffman,
Retired Chairman of the Board and Chief Executive
Officer, Lockheed Martin Corporation
Retired Chairman of the Board and Chief Executive
Officer, Lockheed Martin Corporation, a high technology
aerospace and defense company. Dr. Coffman servedin various executive capacities at Lockheed Martin
Corporation before becoming Chairman and Chief
Executive Officer in 1998. He retired as Chief Executive
Officer in 2004 and as Chairman of the Board in 2005.
Dr. Coffman is on the boards of the following publiccompanies in addition to 3M: Amgen Inc. and Deere &Company.
Director since 2002.

David B. Dillon,
Retired Chairman of the Board and Chief Executive
Officer, The Kroger Co.
Retired Chairman of the Board and Chief Executive
Officer The Kroger Co., a large retailer that operates
retail food and drug stores, multi-department stores,
jewelry stores, and convenience stores throughout
the U.S. Mr. Dillon retired as Kroger’s Chairman of theBoard on December 31, 2014, where he was Chairmanof the Board since 2004 and was the Chief Executive
Officer from 2003 through 2013. Mr. Dillon served as
President from 1995 to 2003 and was elected Executive
Vice President in 1990. Mr. Dillon served as a Directorof the Kroger Co. from 1995 through 2014. Mr. Dillon
began his retailing career at Dillon Companies, Inc. (latera subsidiary of The Kroger Co.) in 1976 and advanced
through various management positions, including its
President from 1986-1995. Mr. Dillon is on the board of
the following public company in addition to 3M: Union
Pacific Corporation.
Director since 2015

Michael L. Eskew,
Retired Chairman of the Board and Chief Executive
Officer, United Parcel Service, Inc.
Retired Chairman of the Board and Chief Executive
Officer, United Parcel Service, Inc., a provider of
specialized transportation and logistics services. Mr.
Eskew was appointed Executive Vice President in 1999
and Vice Chairman in 2000 before becoming Chairman

3M Board of Directors | 146of the Board and Chief Executive Officer of UPS in
January 2002. He retired as Chairman of the Board andChief Executive Officer at the end of 2007 but remained
as a director of UPS until December 31, 2014. Mr. Eskew
is on the boards of the following public companies in
addition to 3M: The Allstate Corporation, International
Business Machines Corporation, and Eli Lilly andCompany.
Director since 2003

Herbert L. Henkel,
Retired Chairman of the Board and Chief Executive
Officer, Ingersoll-Rand plc
Retired Chairman of the Board and Chief Executive
Officer, Ingersoll-Rand plc, a manufacturer of industrial
products and components. Mr. Henkel retired as
Ingersoll Rand’s Chief Executive Officer, a position heheld since October 1999, on February 4, 2010, andretired as Chairman of the Board on June 3, 2010. Mr.
Henkel served as President and Chief Operating Officerof Ingersoll-Rand from April 1999 to October 1999. Mr.
Henkel served in various leadership roles at Textron, Inc.,
including its President and Chief Operating Officer from1998-1999. Mr. Henkel is on the boards of the following
public companies in addition to 3M: The Allstate
Corporation and C. R. Bard, Inc.
Director since 2007

Muhtar Kent,
Chairman of the Board and Chief Executive Officer,
The Coca-Cola Company
Chairman of the Board and Chief Executive Officer,
The Coca-Cola Company, the world’s largest beveragecompany. Mr. Kent has held the position of Chairmanof the Board since April 23, 2009, and the positionof Chief Executive Officer since July 1, 2008. From
December 2006 through June 2008, Mr. Kent served as
President and Chief Operating Officer of The Coca-Cola
Company. From January 2006 through December
2006, Mr. Kent served as President of Coca-Cola
International and was elected Executive Vice Presidentof The Coca-Cola Company in February 2006. FromMay 2005 through January 2006, he was President andChief Operating Officer of The Coca-Cola Company’s
North Asia, Eurasia and Middle East Group, an organization serving a broad and diverse region that included

3M 2016 Sustainability Report

China, Japan, and Russia. Mr. Kent is a board member
and past Co-Chair of The Consumer Goods Forum,a fellow of the Foreign Policy Association, a board
member and a past Chairman of the U.S. China BusinessCouncil, and Chairman Emeritus of the U.S. ASEAN
Business Council.

3M Board of Directors | 147

Cargill from December 2013 until his retirement from
Cargill in September 2015. Mr. Page is on the boardsof the following public companies in addition to 3M:
Cargill, Incorporated, Deere & Company and Eaton
Corporation plc.
Director since 2016

Director since 2013

Edward M. Liddy,
Retired Chairman of the Board and Chief Executive
Officer, The Allstate Corporation
Retired Chairman of the Board and Chief Executive
Officer, The Allstate Corporation, and former Partnerat Clayton, Dubilier & Rice, LLC, a private equity
investment firm. Mr. Liddy served as a partner ofClayton, Dubilier & Rice LLC from January 2010 to
December 2015. At the request of the Secretary of
the U.S. Department of the Treasury, Mr. Liddy served
as Interim Chairman of the Board and Chief Executive
Officer of American International Group, Inc. (AIG),a global insurance and financial services holding
company, from September 2008 until August 2009. Mr.
Liddy served as Chairman of the Board of The Allstate
Corporation, a personal lines insurer, from January 1999
to April 2008, Chief Executive Officer from January
1999 to December 2006, and as President and Chief
Operating Officer from August 1994 to December
1998. Mr. Liddy is on the boards of the following publiccompanies in addition to 3M: Abbott Laboratories,
AbbVie, Inc., and The Boeing Company.
Director since 2000

Gregory R. Page,
Retired Chairman of the Board and Chief Executive
Officer, Cargill, Incorporated
Retired Chairman of the Board and Chief Executive
Officer, Cargill, Incorporated, an international marketer,
processor and distributor of agricultural, food, financial
and industrial products and services. Mr. Page wasnamed Corporate Vice President & Sector President,
Financial Markets and Red Meat Group of Cargill in
1998, Corporate Executive Vice President, Financial
Markets and Red Meat Group in 1999, President andChief Operating Officer in 2000 and became Chairmanof the Board and Chief Executive Officer in 2007.
He served as Executive Chairman of the Board ofRobert J. Ulrich, Retired Chairman of the Board
and Chief Executive Officer of Target Corporation
Retired Chairman of the Board and Chief Executive
Officer of Target Corporation, an operator of large
format general merchandise and food discount stores.
Mr. Ulrich began his retailing career as a merchandisingtrainee in Target’s department store division (Dayton
Hudson) in 1967 and advanced through various
management positions. He became Chairman of theBoard and Chief Executive Officer of Target Stores in1987 and was elected Chairman of the Board and Chief
Executive Officer of Target Corporation in 1994. Mr.
Ulrich retired as Target’s Chief Executive Officer on
May 1, 2008, and retired as Chairman of the Board on
January 31, 2009.
Director since 2008

Patricia A. Woertz,
Retired Chairman of the Board and Chief Executive
Officer, Archer-Daniels-Midland Company
Retired Chairman of the Board and Chief Executive
Officer, Archer-Daniels-Midland Company, an
agricultural processor and food ingredient provider.
Ms. Woertz joined ADM as Chief Executive Officer andPresident in April 2006, and was named Chairman of theBoard in February 2007. She served as Chief Executive
Officer until December 2014, and Chairman of the Board
until December 2015. Before joining ADM, Ms. Woertz
held positions of increasing importance at Chevron
Corporation and its predecessor companies. Ms. Woertz
served on the President’s Export Council 2010-2015
and chaired the U.S. section of the U.S.-Brazil CEO
Forum from 2013-2015. Ms. Woertz is on the boards ofthe following public companies in addition to 3M: The
Procter & Gamble Company and Royal Dutch Shell plc.
Director since 2016

3M 2016 Sustainability Report

Corporate Code of Conduct | 148

Corporate Profile

Corporate Code of Conduct

3M maintains a high standard of corporate conduct for
all employees.

3M believes what the Company stands for is as
important as what we sell. 3M has built a reputation for
integrity and doing business the right way. 3M expects
all employees to act ethically and to sustain and advance
3M’s global reputation.
3M’s global compliance program is managed andadministered by the Compliance and Business Conduct
Department, led by the Vice President, Associate
General Counsel, Compliance and Business Conduct,
who is also 3M’s Chief Compliance Officer (CCO). The
department is staffed with compliance professionals
stationed at company headquarters and around theworld. The CCO reports to the Audit Committee ofthe 3M Board of Directors, which assists the Boardin oversight of 3M’s legal and regulatory complianceefforts. The Compliance and Business Conduct
Department oversees and administers strategic,
systematic and operational components of 3M’s
compliance program design and implementation.

The compliance program is based on the U.S. Federal
Sentencing Guidelines. Its elements include thefollowing:•

A core set of business conduct principles•

Education, training materials and the schedule
upon which compliance training is conducted•

Periodic evaluations, audits and measurements ofthe compliance program’s effectiveness•A 24-hour helpline and website through which
employees and others can report concerns andask questions•

Programs to conduct appropriate due diligenceon business partners, potential and newacquisitions, and candidates for hiring andpromoting•

Investigative expertise•

Incentives and discipline to address compliancesuccesses and failures

The Compliance and Business Conduct Department
collaborates with and is assisted by dedicatedcompliance organizations and subject matter experts

3M 2016 Sustainability Reportin areas such as corporate audit, corporate security,
trade compliance, government contracting, healthcare regulation, and environmental health and safety.
In addition, 3M’s business divisions and subsidiaries
utilize staff who liaise with the Compliance and BusinessConduct Department staff in ensuring that their organizations continuously demonstrate legal compliance andethical business conduct. These staff members assist
in business conduct policy training, communications
and completion of periodic risk assessments for theirorganizations.

Continually Improving Our
Compliance Program
In the fast-paced world of global business, it takes
more than a written compliance policy to keep acompany doing business the right way. Although 3M
has subsidiary operations in more than 70 countries,
there is one Code of Conduct that applies globally. Our
Code of Conduct Global Handbook summarizes 3M’s
compliance principles and raises awareness of 3M’s corerequirement of doing business “the right way, always
and everywhere.” The Global Handbook is available intwenty-two languages, and can be accessed electronically and all employees receive a copy of the Handbook.
Of these twenty-two languages, two were introduced
this year in order to ensure that the Code and 3M’s
expectations are understood by all employees, relevant
stakeholders and business partners.

Corporate Code of Conduct | 149

jobs and for reporting any suspected violations of law
or the Code. Executives and managers are accountablefor creating and promoting, through clear direction andleading by example, a workplace environment in which
compliance and ethical business conduct are expected
and encouraged.
All sections of our Code, including each Principle werereviewed in 2015 and enhancements were identified
that will be executed in the upcoming year. Additionally,
we reviewed and made improvements to underlying
policies, standards and procedures. We also identified
the need for new documents to provide greater clarity to
our employees and began the process of creating those
documents.
A Global Communications Network was established tostandardize, align and share best practices in compliancecommunications and activities. Newsletters, leadership
messages and other compliance communication tools
are now available on the internal 3M Compliance andBusiness Conduct website allowing for efficient global
collaboration.
Further, in 2015, six online compliance courses were
deployed to the mandatory employee population. The
courses included two custom courses and an updated
Anti-Bribery course. Additionally, we created a new
training presentation to address the risk of Conflicts ofInterest which was specifically designed for managers
to discuss with their team. It includes case studies drawn
from real life examples.

The Ethisphere® Institute, the global leader in
defining and advancing the standards of ethicalbusiness practices, has named 3M as a 2015
World’s Most Ethical Company® for the second
year in a row. The designation recognizes
3M’s impact on the way business is conducted
through its efforts of fostering a culture of ethics
and transparency at every level of the company.

We also enhanced our culture of compliance through therequirement that all international subsidiaries implementa local Business Conduct Committee (BCC). A local BCC
creates a governance structure to ensure visibility andtransparency to the key compliance risk and priorities ofa subsidiary. Each BCC meets at least every quarter andincludes members of the local senior leadership team. A
BCC oversees the local compliance program, establishes
priorities for training and communications and drives thedevelopment and enhancement of compliance controls
to address local risk.

The Code of Conduct helps employees and others
covered by the Code take a consistent, global approachto important ethics and compliance issues. 3M
employees, including supervisors, managers and otherleaders are responsible for knowing and following the
ethical, legal, and policy requirements that apply to their

We recently enhanced Integrity Assessments System,
our online global system for documenting andmanaging third party relationships. We improved it
by utilizing a new technology platform, improving
the user interface, adding greater functionality andimproving overall performance. Post-acquisition due

3M 2016 Sustainability Reportdiligence was improved by furthering the effectivenessof our compliance integration and post-transaction
risk assessment process. This was spearheaded bydeveloping local networks that are responsible for
executing various phases of the process.

Business Conduct Committee
The 3M Business Conduct Committee is composedof several senior executives and is chaired by 3M’s
CCO. The Committee has oversight for 3M’s various
compliance efforts and, as appropriate, has periodic
reporting to the Audit Committee of the 3M Board of
Directors and Corporate Operating Committee.

Compliance Training and Education
3M offers a comprehensive online compliance training
program to all employees worldwide. The program’s
training modules are mandatory for approximately
46,000 global employees, who are required to takemodules on a two- or four-year cycle, depending on thecourse. Modules include data privacy, careful communications, gifts, understanding the Foreign Corrupt
Practices Act, environmental health and safety, businessconduct and ethics, conflicts of interest, and other key
compliance areas. More than 25 courses are offered in
multiple languages. The 3M Compliance and BusinessConduct website on 3M’s intranet offers additionalanti-bribery training on 3M’s global anti-bribery
compliance program. In addition to online training, theCompliance and Business Conduct Department, in close
collaboration with 3M Legal Affairs, provides frequent,
tailored in-person training to business, subsidiary andstaff groups. Some of this training occurs as part of anannual calendar and other training occurs as requested
or deemed appropriate.

Commitment to Anti-Corruption
As a member of the United Nations Global Compact, 3M
is committed to support Principle 10 on Anti-Corruption
and is working against corruption in all forms. Ourcommitment to Principle 10 and involvement in working
groups associated with Principle 10 provides opportunity
to benchmark and learn best practices from other peer
companies and participate in relevant working groupopportunities. We conduct additional benchmarking withsimilarly situated companies and take the opportunity

Corporate Code of Conduct | 150

to participate in the education of other professionals
working on anti-corruption through our CCO’s and otherCompliance and Business Conduct Department professionals’ participation in anti-corruption conferences andorganizations.
3M’s Anti-Bribery Principle requires compliance withall applicable anti-bribery laws, including the U.S.
Foreign Corrupt Practices Act, the U.K. Bribery Act
and all applicable local laws where 3M operates. The
Anti-Bribery Principle applies to 3M employees, as wellas to our business partners who act on 3M’s behalf. In
addition, anti-corruption policies and procedures havebeen communicated to all employees, and “Global
Bribery and Corruption Awareness” training is requiredof employees in higher-risk roles, including those inLegal, Audit, Sales, Marketing, Export and Global
Trading. 3M’s Anti-Bribery Principle and 3M-provided
training are designed to educate our employees andbusiness partners on recognizing the many forms inwhich bribes can appear and how to avoid them, even at
the risk of losing business opportunities. Furthermore,
employee awareness of corruption risk is reinforced
through specific Anti-Bribery certification that isincluded in the Annual Code of Conduct Annual certification process. Furthermore, the Audit Committee of
the Board receives at least quarterly updates from the
CCO on the Code Principles and compliance activities.
3M’s commitment to anti-corruption also applies toassessing and mitigating risks of using third-party
intermediaries and other business partners. Basedupon a risk calibration resulting from an assessmentof transaction, geography and other risk factors,
3M conducts reputational due diligence reviewson these third parties (3M’s “Integrity Assessment
System.”) Depending on the outcome of thosereviews, 3M responds to identified risks with training,
inclusion of relevant contractual terms and otherrisk-mitigating controls.
The Compliance and Business Conduct Department
also collaborates with 3M Legal Affairs on pre- and­post-acquisition due diligence processes in themerger and acquisition setting. These processes help
identify and assess risks in the target company before
acquisition. The pre-acquisition efforts also accelerates
our efforts to identify compliance gaps and integrate
the acquired company’s employees to 3M’s complianceprogram and culture. The Compliance & BusinessConduct Department is charged to undertake specific,

3M 2016 Sustainability Report

Corporate Code of Conduct | 151

identification, nor does it generate or maintain internal
connection logs containing Internet Protocol (IP)addresses. Web-based reports are made through asecure internet portal, which does not trace or showuser screen names. 3M’s Employee Obligations andReporting Systems
Reporting Principle prohibits retaliation against anyone
Allegations & Disciplination
Actions
who
raises a business conduct concern in good faithUpholding 3M’s Code of Conduct and values is theorcooperates
in a company investigation. Below is a
responsibility of everyone acting on 3M’s behalf. 3M
graphillustrating
four-year metrics for business conduct
recognizes that reporting suspected misconduct orrelated reports raised using our reporting tools found ateven asking a compliance question can take courage,
www.3M-Ethics.com.
but we believe it is the right thing to do. Our employees
risk-based assessment and if necessary, remediation
activities upon the closing of every acquisition, using anestablished protocol and expert staff.

are encouraged to raise questions or report misconduct
or potential misconduct to management, 3M LegalCounsel, the Compliance and Business Conduct
Department, or to their Human Resources Manager.

The Compliance and Business Conduct Department
has the responsibility to review every business conduct
concern that is reported. The Department determines
which reports require investigation and if investigation isneeded, assigns the appropriate investigation resource.
For concerns that are substantiated, disciplinary action
is taken. Discipline comes in a range of forms, fromwarnings, to suspensions, to termination, consistent withsimilar past violations. Disciplinary actions may impact
one or more persons associated with a single substantiated violation.

In addition, a 24-hour confidential and anonymous (aspermitted by local law) helpline and online reporting
system managed by a third party vendor is available
internally and externally. Reports are reviewed andresponded to by the Compliance and Business Conduct
Department or other responsible staff departments.
The system does not trace phone calls or use caller

Allegations & Disciplinary Actions
500

375

250

125

0
2011
Allegations Reported

2012

2013

Substantiated Allegations

2014
Disciplinary Actions2015

3M 2016 Sustainability Report

Maintaining Business Conduct
Compliance
Operating with uncompromising integrity is one of 3M’s
core values and includes avoiding bribery or corruption
in any form.
Oversight, monitoring and testing of 3M’s corporate
compliance program and controls is supported
by periodic compliance risk assessments of 3M’s
businesses, including assessment of risk related tocorruption, and specific risk-based compliance andethics audits performed by 3M’s Internal Audit function.
These audits follow a specific audit module that focuseson ethics and business as part of systematic audits offinancial and other business controls.
In addition, a dedicated team within 3M’s Complianceand Business Conduct Department conducts periodic
compliance and anti-bribery evaluations in various
3M subsidiaries and operating units each year. Theseevaluations are selected based on objective andsubjective risk factors, and they include reviews ofsample financial transactions, compliance records andinterviews with subsidiary and business unit personnel.
In 2015, over 500 nonproduction employees wereinterviewed as part of the evaluation process.
Audits, evaluations and risk assessments are allimportant activities for the purposes of detecting
any opportunities for improvement or even gaps inprocesses or procedures. Of equal importance, they
provide opportunities to reinforce the importanceof operating with a compliance and ethical behavior
mindset and facilitate the identification of complianceCorporate Code of Conduct | 152

risks. All these outcomes reinforce prevention of futurecompliance gaps or failures.
As mentioned above, in 2015, we enhanced our cultureof compliance through the requirement that all international subsidiaries implement a local Business Conduct
Committee (BCC). Each BCC creates a governancestructure to ensure visibility and transparency to the key
compliance risk and priorities of a subsidiary. Each BCC
meets at least every quarter and includes members of
the local senior leadership
We also improved our culture of compliance throughthe≈re-allocation of resources with respect tocompliance responsibility in our international operations.
We previously staffed two area leadership roles withindividuals who had dual functional responsibility(Compliance and Legal.) These roles were re-allocated,and now there is one employee for Compliance and one
for Legal.
Further, in 2015 as mentioned above, we created a
Global Communications Network to standardize, alignand share compliance communications.

Political Values
To respect our employees’ right to engage in the politicalprocess while also preventing potential corruption, any
political contributions outside the United States requireapproval by the Area Vice President and assigned
legal counsel.
For additional information on our Corporate Code of
Conduct please visit: http://solutions.3m.com/wps/
portal/3M/en_US/businessconduct/bcmain/3M 2016 Sustainability ReportManaging Enterprise Risks and Opportunities | 153

Corporate Profile

Managing Enterprise Risks and Opportunities

View how 3M evaluates potential risks facing thecompany.

Enterprise Risks andOpportunities
The Board has delegated to the Audit Committee,
through its charter, the primary responsibility for theoversight of risks facing the Company. The charter
provides that the Audit Committee shall “discuss policies
and procedures with respect to risk assessment and risk
management, the Company’s major risk exposures andthe steps management has taken to monitor and mitigate
such exposures.”
The Vice President and General Auditor, Corporate
Auditing (“Auditor”), whose appointment andperformance is reviewed and evaluated by the Audit
Committee and who has direct reporting obligations
to the Audit Committee, is responsible for leading theformal risk assessment and management process within
the Company. The Auditor, through consultation with theCompany’s senior management, periodically assesses
the major risks facing the Company and works withthose executives responsible for managing each specificrisk. The Auditor periodically reviews with the Audit
Committee the major risks facing the Company and thesteps management has taken to monitor and mitigate
those risks. The Auditor’s risk management report, which
is provided in advance of the meeting, is reviewed withthe entire Board in conjunction with either the Chairof the Audit Committee or the Auditor. The executive
responsible for managing a particular risk may also
report to the full Board on how the risk is being managed
and mitigated.
While the Board’s primary oversight of risk is with
the Audit Committee, the Board has delegated toother Committees the oversight of risks within theirareas of responsibility and expertise. For example, theCompensation Committee oversees the risks associatedwith the Company’s compensation practices, including
an annual review of the Company’s risk assessment of its
compensation policies and practices for its employees.
The Finance Committee oversees risks associated with
the Company’s capital structure, its credit ratings andits cost of capital, long-term benefit obligations, and the3M 2016 Sustainability ReportCompany’s use of or investment in financial products,
including derivatives used to manage risk related toforeign currencies, commodities and interest rates. The
Nominating and Governance Committee oversees therisks associated with the Company’s overall governanceand its succession planning process to understand that
the Company has a state of future, qualified candidates
for key management positions. The Auditor also actively
and routinely seeks input from executive Committees
with expertise in specific risks. For example, the EHS
Committee provides input on risks with environmental orsocial impacts.
The Board believes that its oversight of risks (primarily
through delegation to the Audit Committee, but also
through delegation to other Committees, and the sharing
of information with the full Board) is appropriate for adiversified technology and manufacturing company like
3M. The chair of each Committee that oversees risk
provides a summary of the matters discussed with theCommittee to the full Board following each Committee
meeting. The minutes of each Committee meeting arealso provided to all Board members.
The Board also believes its oversight of risk is enhanced
by its current leadership structure (discussed above)
because the CEO, who is ultimately responsible for
the Company’s risk management, also chairs regular
Board meetings, and with his in-depth knowledge andunderstanding of the Company, he is best able to bringkey business issues and risks to the Board’s attention.
3M conducts extensive interviews, group assessments
and reviews by senior management for completion ofrisk analysis assessments to provide more customized
and useful prioritized results and to incorporate
understanding of external factors that could influence
the nature and gravity of risk. This process assuresthat the appropriate risks are properly identified as anenterprise risk, to identify key “failure modes” that could

Managing Enterprise Risks and Opportunities | 154lead to a risk incident, and to review and assess thequality of ownership of the risk and related resources
available to ensure proper avoidance, mitigation andresponse capabilities.
A gap assessment is completed to provide quantification on a common scale of the level of risk and 3M’s
corresponding capabilities relative to each enterpriserisk identified. The outcomes are used to prioritize actionplans for each topic.
More detailed quantitative and qualitative sensitivity
analyses may be conducted and cover topics suchas operational risk (business continuity), raw material
sourcing and price fluctuation, compliance, revenue
forecasting, climate change legislation, petroleum
pricing and strategic planning processes, and manyother areas.
The Board of Directors Public Issues Committee reviews
public policy issues and trends affecting the company,
which inform the Audit Committee’s enterprise risk
assessment process. The Committee also reviews
and approves the company’s response to stockholder
proposals relating to public policy issues. The Boardof Directors has determined that all Public Issues
Committee members are independent under the New
York Stock Exchange listing standard.

Cybersecurity
3M makes great efforts to ensure we comply with alllaws and regulations.
Protecting our company is of critical importance toall of us at 3M. Strong cybersecurity programs are
essential, and we have continued to invest in activities
around cybersecurity training and awareness, especiallywhen it comes to avoiding phishing and other threatstargeting 3M.

About Report3M 2016 Sustainability Report

About Report | 156

About Report
Report Scope and Boundaries
Report Schedule and Period
Current Issue: May 10, 2016
Next Issue: Scheduled for May 2017
Previous Issue: May 11, 2015

The data reported in this report has been reviewed for
accuracy and completeness, including the reliability ofthe systems used to obtain the data.
Unless noted below, corporate staff have also verified
the implementation of policies and management systems
through audits and self-reporting systems.
•

Financial Data: Financial information referenced
in this report is collected and reported inaccordance with the United States Securities andExchange Commission through the 2016 Annual
Report.

•Environmental, Health and Safety (EHS) Data:
The EHS data in this report is related to releaseto the environment, safety performance,
management systems implementation andregulatory compliance. Data collection systems
are in place at applicable sites to track and collectenvironmental, health and safety data throughthe corporate-wide EHS reporting systems (e.g.,
Environmental Targets Database, Worldwide
Incident Management System, etc.).

•

Social Data: The data related to employee
metrics, metrics, social practices, and community
programs has been derived from various
databases from within the Human Resourcesand 3Mgives organizations. This data has beenreviewed and verified by the departments
responsible for maintaining the internal reporting
systems.

•

Responsible Sourcing Systems and Data: The
policies and management systems implementation in this area has been reviewed and verified
by the departments responsible for maintaining
the internal reporting systems.

Prior to 2010, 3M’s Sustainability Report was a fully
integrated website. Therefore, copies prior to 2010 are
not available.
This report provides a summary of the activities in fiscal
year 2015 (January 1, 2015, to December 31, 2015).

Organizational Boundaries
This report covers 3M’s owned manufacturing facilities
and leased facilities worldwide, including joint ventures(if greater than 50 percent 3M ownership) and partiallyowned subsidiaries (if greater than 50 percent 3M
ownership) where 3M has full operational control.
Acquisitions are included in data sets once legally
owned and fully integrated onto 3M systems. All data
included in the report is global data unless otherwise
specified. Any significant organization changes are
identified in 3M 2016 Notice of Annual Meeting andProxy Statement.

Data Collection, Adjustments andVerification
The data provided in this report through facts andfigures is based on activities during 3M’s fiscal year
2015. For some performance indicators, the previous
year’s data is provided to allow for annual comparisons.

Report Data Collection
Due to the size and geographical extent of ouroperations, it is at times difficult to obtain all data
points. Therefore, to the extent possible, limitations andassumptions are stated as information in the report.

Sites acquired by 3M are integrated into 3M programs
and reporting systems via a prioritized functional
integration schedule. Timeframe for integration varies
depending on subject matter reporting requirements
and site systems prior to being acquired; however, on
average integration ranges between one to three years.

3M 2016 Sustainability Report

About Report | 157

Base Year and Other Adjustments

Data Verification

3M’s Annual Report (10K) and Investor Relations website
document any changes to financial data. Several of 3M’s
environmental goals are normalized per net sales. 3M
does not adjust sales data for inflation.

Internal Verification: 3M has conducted an internalverification of the information provided in this report.
The objectives for our assurance process included:

3M generally does not adjust its base-year environmental metrics data to reflect changes in 3M’sorganizational structure. As a result, 3M sets environmental targets that are normalized or indexed to
production (tons emitted or net sales) to ensure theenvironmental progress we report publically is not
unduly influenced by changes to our organizational
structure. However, in the case of our greenhousegas emissions data, 3M follows the World Resource
Institute and World Business Council for Sustainable
Development GHG Protocol. Consequently, we readjust
our greenhouse gas emissions base-year data in the caseof business acquisitions and divestitures.
In every case, 3M adjusts base-year and other years’
data if data collection methods change or data errors are
identified. Any significant changes in the measurement
methods and/or data values applied to key environmental metrics from previous years are documented
within the report. Significant changes are defined by
3M’s Sustainability Report as changes greater than 5
percent of the original data point.
In 2011, 3M returned to a more conventional definition ofwaste that considered recycling as neutral (contributing
neither toward total waste nor toward good output).
Between 2005 and 2010, 3M adopted a different
definition of waste to drive the company’s waste
reduction efforts toward more sustainable solutions,such as pollution prevention.
3M’s waste reduction goal and progress during thisperiod included recycling. Waste data is reported inthis report using both definitions. When total waste is
discussed in general, a conventional neutral definition ofrecycling is used.

•

Accuracy and completeness of data•

Reliability of systems used to measure and record
data•

Reliability of ratios compiled from underlying data•

Adherence to the GRI G4 Reporting Guidelines•

Implementation of internal policies and related
management systems as reported•

Presentation of a complete and fair picture in thereport as a whole

Third-Party Verification: Bureau Veritas [“Assurance
Provider”] provided independent third-party assurance
for this report covering activities January 1, 2015 to
December 31, 2015. Bureau Veritas provided moderatelevel of assurance in accordance with AA100AS-2008,
Type 2. See Appendix A of this report for its assurance
statement.

Global Principles and Guidelines
Global Reporting Initiative
The Global Reporting Initiative (GRI) is a network-basedorganization that includes representatives frombusiness, government, labor, third-party advocacy
groups and academia. The GRI organization has
developed a framework for sustainability reporting.
Following the GRI Sustainability framework advances
two important objectives: transparency and the ability
to compare results from one organization to another.
3M has developed this report using GRI G4 Guidelines.
The following GRI index outlines where specific GRI
reporting elements and indicators are addressed in thereport or other reporting sources including 3M’s Annual
Report (10K) (AR), 2016 Notice of Annual Meeting
and Proxy or other noted sources on 3M’s Investor
Relations website.

3M 2016 Sustainability Report

Our material Aspects are identified in the GRI Index. 3M
self-declares the 2016 report as “In Accordance-Core.”
United Nations Global Compact Communication
on Progress
The UN Global Compact is a strategic policy initiative
for businesses that are committed to aligning theiroperations and strategies with 10 universally accepted
principles in the areas of human rights, labor,
environment and anti-corruption. 3M committed to the
UN Global Compact principles in early 2014. This report
includes an index of our Communication on Progress
implementing the 10 principles as well as alignment with
the UN 2030 Sustainable Development Goals (SDGs)
within the content of this 2016 Sustainability Report.

About Report | 158

Contact 3M
Further information can be obtained by contacting 3M
Sustainability at Sustainability@mmm.com.
Global Reporting Initiative Reporting Guidelines
3M has developed this report using the Global Reporting
Initiatives’ G4 Guidelines. The following index outlines
where specific GRI reporting elements and indicators
are addressed in the report.

3M 2016 Sustainability Report

Index | 159

About Report

Global Reporting Initiative (GRI) Content Index
and UN Global Compact Report on Progress

GRI
Element

Description

Cross-Reference (Hyperlinks)
or Direct Answer

GRI
Connections toDisclosure United Nations
Level
Initiatives*Page(.pdf)SD General Standard Disclosure
G4-1Statement from the mostsenior decision-maker of theorganization

Message from our CEO

3

G4-2

Description of key impacts,
risks and opportunities

Message from our CEO
Our Sustainability Strategy
Defining our Material Issues
Global Challenges

3
8
20
63

G4-3

Name of organization

Corporate Profile

125

G4-4

Primary brands, products,
and services

Corporate Profile / Our Products

130

G4-5

Location of theorganization's headquarters​

Corporate Profile / Global Operations

130

G4-6

Number of countries
operating in, and countries
with significant operations

Corporate Profile / Global Operations

130

G4-7

Nature of ownership andlegal form

Corporate Profile / Global Operations
see also: 3M 2015 10-K Annual Report(page 3)

130
130

G4-8

Markets served

Corporate Profile / Our Products
see also: 3M 2015 10-K Annual Report(pages 3-5)

130

G4-9

Scale of organization

Corporate Profile / Global Operations
see also: 3M 2015 10-K Annual Report

130

G4-10

Total number of employees

Employee Development and Education /Our Footprint

106
109

UNGC Principle 6
SDG 8

G4-11

Percentage of employees
covered by collective
bargaining

29%—

UNGC Principle 6
SDG 8

G4-12

Description of supply chain

Responsible Sourcing /Assessing Supplier Performance29
34

3M 2016 Sustainability Report

Index | 160

Cross-Reference (Hyperlinks)
or Direct Answer

Page(.pdf)GRI Element

Description

G4-13

Significant changes
in organization during
reporting period

About 3M
see also:
3M 2016 Proxy Statement
3M 2015 10-K Annual Report (pages 3-5)

G4-14

Precautionary approach

Global Challenges /Optimizing our Environmental Footprint
Global Challenges /Environmental Management Systems andCompliance
Product Innovation /Life Cycle Management and Analysis

63
12
63
66
23
24

G4-15

External sustainability
charters, principles or
initiatives

Respecting Human Rights
Company Code of Conduct
Engaging Our Stakeholders /Memberships and Partnerships

57
148
42
43

G4-16

List membershipsof associations andorganizations

Engaging Our Stakeholders /Memberships and Partnerships

42
43

G4-17

Entities in consolidated
financial statement

Corporate Profile / Global Operations
see also:
3M 2015 10-K Annual Report(pages 3-5, 55-117)

1 30

G4-18

Process for defining thereport content and Aspect
Boundaries

Defining our Material Issues

20

G4-19

Material Aspects

Defining our Material Issues

20

G4-20

Aspect boundary within

Defining our Material Issues

20

G4-21

Aspect boundary outside

Defining our Material Issues

20

G4-22

Effect of restatement of
information

There are no restatements of data fromprevious reports in this report

—

G4-23

Report significant changes
in the Scope and Aspect
Boundaries

No significant changes to applicable
operational boundaries, scope ormeasurement methodology. Major item
to note is the completion of the 2015
Sustainability Goals

—

G4-24

List of stakeholders engaged

Engaging Our Stakeholders /Major Stakeholders and Key Actions

42
42

G4-25

Basis for stakeholder
identification

Engaging Our Stakeholders /Overview

42
42

G4-26

Approach to stakeholder
engagement

Engaging Our Stakeholders /Overview

42
42

G4-27

Key topics of concern raisedby stakeholders

Defining our Material Issues
Engaging Our Stakeholders

20
42

G4-28

Reporting period

About Report /Report Schedule and Boundaries

156
156

G4-29

Date of most previous report

About Report /Report Schedule and Boundaries

156
156

G4-30

Reporting cycle

About Report /Report Schedule and Boundaries

156
156

GRI
Disclosure
Level

Connections toUnited Nations
Initiatives*

3M 2016 Sustainability Report

Index | 161Page(.pdf)

GRI
Disclosure
Level

Connections toUnited Nations
Initiatives*

GRI Element

Description

Cross-Reference (Hyperlinks)
or Direct Answer

G4-31

Contact point for questions

About Report

156

G4-32

In accordance option

About Report

156

G4-33

External assurance forreportAbout Report
Assurance Statement

156
Post Index

G4-34

Governance structure

Corporate Governance

129

G4-35

Delegation of authority forsustainability topics

Corporate Governance /Sustainability Governance

129
133

G4-36

Executive level position forsustainability topics

Corporate Governance /Sustainability Governance

129
133

G4-37

Process for stakeholder
feedback to highest
governance body

Corporate Governance /Sustainability Governance

129
133

SDG 16

G4-38

Composition of board

Corporate Governance /Board Skills and Responsibilities

129
129

SDG 5, 16

G4-39

Chair is executive officer

Corporate Governance /Board’s Leadership Structure

129
130

SDG 16G4-40

Nomination and selection
process for board

Corporate Governance /Board Membership Criteria

129
136

SDG 5, 16

G4-41

Conflicts of interest
avoidance for board

Corporate Governancesee also: 3M 2016 Proxy Statement (page 15)

129

SDG 16

G4-42

Governance body's rolein development of values,
mission statement, etc.

Corporate Governance /Sustainability Governance

129
133

G4-43

Measures to improveboard's understanding ofsustainability impacts

Corporate Governance /Sustainability Governance

129
133

G4-44

Evaluation of board withrespect to sustainability
impacts

Corporate Governance /Sustainability Governance

129
133

G4-45

Board's role in identificationand management ofsustainability risks

Corporate Governance /Sustainability Governance

129
133

G4-46

Board's role in reviewing
organization's risk
management forsustainability risks

Corporate Governance /Sustainability GovernanceManaging Enterprise Risks and Opportunities

129
133
153

G4-47

Frequency of the boards
review of sustainability risks

Corporate Governance /Sustainability Governance

129
133

G4-48

Highest governing body'srole in reviewing report andmaterial aspects

Corporate Governance /Sustainability Governance

129
133

G4-49

Process for communicating
critical concerns to board

Corporate Governance /Sustainability Governance

129
133

G4-50

Nature and number ofconcerns reported to board

This is considered Business Confidential

—

G4-51

Remuneration policy for
board

Corporate Governance /Board Compensation

129
138

G4-52

Process for determining
remuneration of board

Corporate Governance /Board Compensation

129
138

SDG 16

3M 2016 Sustainability Report

Index | 162

Cross-Reference (Hyperlinks)
or Direct Answer

Page(.pdf)

GRI
Disclosure
Level

Connections toUnited Nations
Initiatives*

GRI Element

Description

G4-53

Stakeholders' views soughtfor board remuneration
policies

Corporate Governance /Board Compensation

129
138

G4-54

Ratio of annualcompensation for highest
paid individual versus
medianThe ratio of CEO pay to other positions is
not a labor indicator currently tracked anddisclosed. Our practice is to set pay targets
at all levels, from the CEO on down, based oncompetitive external market data.

—

G4-55

Percentage increase ofcompensation for highest
paid individual

The ratio of CEO pay to other positions is
not a labor indicator currently tracked anddisclosed. Our practice is to set pay targets
at all levels, from the CEO on down, based oncompetitive external market data.

—

G4-56

Organization's values,
principles and standards

Corporate Code of Conduct

148

UNGC Principle 10
SDG 16

G4-57

Mechanisms for seeking
advice on organizational
integrity

Corporate Code of Conduct /Reporting Systems

148
151

UNGC Principle 10
SDG 16

G4-58

Mechanisms for reporting
concerns about unethicalbehavior

Corporate Code of Conduct /Reporting Systems

148
151

UNGC Principle 10
SDG 16

Economic Sustainability

36

SDG 2, 5, 7, 8, 9
SDG 13

SDG 16EC Economic
G4-EC1

Direct economic value
generated and distributed

G4-EC2Financial risks due to climate Economic Sustainability /changeManaging Enterprise Risks and Opportunities

36
153

G4-EC3Coverage of benefits plan
obligations

Economic Sustainability

36

G4-EC4

Financial assistancereceived from government​

3M does not receive significant financial
assistance from the government. For some
information about tax holidays and the U.S.
research and development credit, refer toNote 8, Income Taxes, in 3M 2015 10-K Annual
Report (pages 73-76)—

G4-EC5

Ratio of entry level wage by
gender compared to local
minimum wage

3M sets and administers compensation basedon external market competitiveness without
regard to gender—

G4-EC6

Proportion of senior
management hired fromlocal community

This is considered Business Confidential—

G4-EC7Development and impact of
infrastructure investments

Collaborating with Our Communities /Goals and Results

46
13

SDG 2, 5, 7, 9

G4-EC8Significant indirect
economic impacts, including
extentCollaborating with Our Communities /Goals and Results

46
13

SDG 8, 10, 17

G4-EC9Proportion of spending on
local suppliers

Responsible Sourcing /Supplier Diversity
Supplier spend by location is consideredBusiness Confidential

29
35

SDG 12

3M 2016 Sustainability ReportGRI Element

Description

Index | 163

Cross-Reference (Hyperlinks)
or Direct Answer

Page(.pdf)

GRI
Disclosure
Level

Connections toUnited Nations
Initiatives*

EN Environment
G4-EN1

Materials used by weightand volume

Due to the diversity and complexity of
manufacturing of 3M’s products andassociated materials portfolio, this data is notcollected (by weight/volume) and aggregatedto the extent it would indicate relevance at a
corporate level—

G4-EN2

Percentage of materials
used that are recycled input
materials

Due to the diversity and complexity of
manufacturing of 3M’s products andassociated materials portfolio, this data is notcollected (percent of recycled materials) andaggregated to the extent it would indicate
relevance at a corporate level.
Refer to Environmental Solutions Catalog forseveral examples of utilizing recycled content.

—

G4-EN3

Energy consumption within
the organization​

Energy and Climate /Energy Goals History and Results

80
89

UNGC Principle 7, 8
SDG 7, 8, 12, 13

G4-EN4

Energy consumption outsideof the organization​

Energy and Climate /Energy Goals History and Results

80
89

UNGC Principle 8
SDG 7, 8, 12, 13

G4-EN5

Energy intensity

Energy and Climate /Energy Goals History and Results

80
89

UNGC Principle 8
SDG 7, 8, 12, 13

G4-EN6

Reduction of energy
consumption

Energy and Climate /Energy Goals History and Results

80
89

UNGC Principle 8, 9
SDG 7, 8, 12, 13

G4-EN7

Reductions in energy
requirements of products
and services​

Energy and Climate /Energy Goals History and Results
Product Innovation /Lifecycle Management and Analysis

80
89
23
24

UNGC Principle 8, 9
SDG 7, 8, 11, 12, 13

G4-EN8

Total water withdrawal bysourceWater /
Goals and Results

75
78

UNGC Principle 7, 8
SDG 6

G4-EN9Water sources significant
affected by withdrawal

Water /
Goals and Results

75
78

UNGC Principle 8
SDG 6

G4-EN10Percentage and total volume
of water recycled andreusedWater /
Goals and Results

75
78

UNGC Principle 8
SDG 6, 8, 12

G4-EN11

Operational sites near
protected or highbiodiversity areas

3M conducts environmental assessmentsof our operational sites, whereby biodiverse
areas may be identified. Where applicable, apublic database search is completed, which
includes a wetland database. Site visits also
identify rivers, creeks, potential wetlands, etcthat are on or near the facility being assessed.

—

G4-EN12Significant impacts on
biodiversity

Due to the size and complexity of 3M, thecosts for collecting impacts of activities,
products and services is disproportionate to
the results.

—

G4-EN13

Habitats protected

Collaborating With Our Communities

46

UNGC Principle 8
SDG 6, 14, 15

3M 2016 Sustainability Report

Index | 164

Cross-Reference (Hyperlinks)
or Direct Answer

Page(.pdf)

GRI
Disclosure
Level

Connections toUnited Nations
Initiatives*

GRI Element

Description

G4-EN14

Endangered species habitats
near operational sites

3M conducts environmental assessmentsof our operational sites, whereby biodiverse
areas may be identified. Where applicable, apublic database search is completed, which
includes a wetland database. Site visits also
identify rivers, creeks, potential wetlands, etcthat are on or near the facility being assessed.

—

G4-EN15

Direct GHG emissions

Energy and Climate /Energy Goals History and Results

80
89

UNGC Principle 7, 8
SDG 3, 12, 13, 14, 15

G4-EN16

Energy indirect GHG
emissions

Energy and Climate /Energy Goals History and Results

80
89

UNGC Principle 7, 8
SDG 3, 12, 13, 14, 15

G4-EN17

Other indirect GHG
emissions

Energy and Climate /Energy Goals History and Results

80
89

UNGC Principle 7, 8
SDG 3, 12, 13, 14, 15

G4-EN18

GHG consumption intensity

Energy and Climate /Energy Goals History and Results

80
89

UNGC Principle 8
SDG 13, 14, 15

G4-EN19

Reduction of GHG emissions

Energy and Climate /Energy Goals History and Results

80
89

UNGC Principle 8, 9
SDG 13, 14, 15

G4-EN20

Emissions of ozone
depleting substances

Energy and Climate /Energy Goals History and Results

80
89

UNGC Principle 7, 8
SDG 3, 12

G4-EN21

NOx, SOx, and othersignificant air emissions​

Raw Materials /Air Quality Management

65
68

UNGC Principle 7, 8
SDG 3, 12, 14, 15

G4-EN22

Total water discharged byquality and destination

3M 2025 water goals are focused on water
conservation and community engagement.
The 3M Business Conduct requirements andthe Environmental Policy require compliancewith all applicable jurisdictional laws andregulations, including those on water
discharge.

—

G4-EN23

Total weight of waste bytype and disposal method

Raw Materials /Waste Management

65
70

UNGC Principle 8
SDG 3, 6, 12

G4-EN24

Total number and volume ofsignificant spills​

3M did not have any significant spills in 2015that met the GRI definition of reportable in theorganizations financial report (due to resulting
liabilities).

—

UNGC Principle 8
SDG 3, 6, 12, 14

G4-EN25

Weight of hazardous waste

The 3M Business Conduct requirements andthe Environmental Policy require compliancewith all applicable jurisdictional laws andregulations, including those on hazardous
waste transportation.

—

G4-EN26

Water bodies affectedby organization's water
discharges

3M conducts environmental assessmentsof our operational sites, whereby biodiverse
areas may be identified. Where applicable, apublic database search is completed, which
includes a wetland database. Site visits also
identify rivers, creeks, potential wetlands, etcthat are on or near the facility being assessed.

—

G4-EN27

Mitigation of environmental
impacts of products

Product Innovation /Driving Growththrough Sustainable Product Stewardship

23
24

UNGC Principle 7,8, 9
SDG 6, 8, 12, 13, 14,
15

G4-EN28

Percentage of products andpackaging materials that arereclaimed

Responsible Sourcing /Responsible Packaging

29
27

UNGC Principle 8
SDG 8, 12

3M 2016 Sustainability Report

Index | 165

Cross-Reference (Hyperlinks)
or Direct Answer

Page(.pdf)

GRI
Disclosure
Level

Connections toUnited Nations
Initiatives*

GRI Element

Description

G4-EN29

Fines for non-compliancewith environmental
regulation

Energy and Climate /Environmental Violations and Liabilities

80
83

UNGC Principle 8
SDG 8, 16

G4-EN30

Environmental impacts oftransporting products andmembers of workforce

Energy and Climate /Energy Goals History and Results(GHG Scope 3 table)

80
85

UNGC Principle 8
SDG 11, 13

G4-EN31

Total environmental
protection expenditures andinvestments by type​This is considered Business Confidential—

G4-EN32

Percentage of new
suppliers screened using
environmental criteria

Responsible Sourcing /Assessing Supplier Performance

29
34

UNGC Principle 8

G4-EN33

Negative environmental
impacts in the supply chain
and actions taken​

Responsible Sourcing /Due Diligence for Supply Chain Complianceand Risk Mitigation

29
30

UNGC Principle 8
SDG 15

G4-EN34

Number of grievances about
environmental impacts

This is considered Business Confidential—

HR Human Rights
G4-HR1

Investment agreements
and contracts that include
human rights clauses

Corporate Code of Conduct
Investment agreements are subject to 3M
Business Conduct Policies and Guidelines

148

UNGC Principle 2

G4-HR2

Employee training on humanrightsRespecting Human Rights /Human Rights Awareness and Training

54
56

UNGC Principle 1

G4-HR3

Incidents of discriminationand corrective action

This is considered Business Confidential—

G4-HR4

Operations and suppliers inwhich the right to freedomof association may beviolated

Respecting Human Rights /Freedom of Association andCollective Bargaining
Responsible Sourcing /Assessing Supplier Performance

54
56
29
34

G4-HR5

Operations and supplierswith risk of child labor

Respecting Human Rights /Child Labor/Minimum Hiring Age
Responsible Sourcing /Assessing Supplier Performance

54
57
29
34

UNGC Principle 5
SDG 8, 16

G4-HR6

Operations and supplierswith risk of compulsory
labor

Respecting Human Rights /Forced and Compulsory Labor or
Human Trafficking
Responsible Sourcing /Assessing Supplier Performance

54

UNGC Principle 4
SDG 8

Percentage of security
personnel trained in theorganization’s human rights
policies

All 3M-employed Corporate Security staff
members are trained on 3M policies, which
includes the Respectful Workplace Policy(including Human Rights policy elements).
3M plant locations also hire third-party andexternal security personnel to restrict publicaccess to our facilities. They are contractually
expected to comply with 3M policies whenassigned to work at a 3M site.

G4-HR7

UNGC Principle 3
SDG 8

57
29
34
—

UNGC Principle 1
SDG 16

3M 2016 Sustainability Report

Index | 166

Cross-Reference (Hyperlinks)
or Direct Answer

Page(.pdf)

GRI
Disclosure
Level

Connections toUnited Nations
Initiatives*

GRI Element

Description

G4-HR8

Indigenous rights violations

To the best of our knowledge, there were no
incidents related to the rights of indigenous
people in 2015—

UNGC Principle 1

G4-HR9Number and percentage of
operations that have beenassessed for human rights

Respecting Human Rights /Human Rights Performance and Assessment

54
57

UNGC Principle 1

G4-HR10Percentage of new suppliers
screened using human rights
criteria​

Responsible Sourcing /Assessing Supplier Performance

29
34

UNGC Principle 2

G4-HR11

Negative human rights
impacts in the supply chain
and actions taken​

Responsible Sourcing /Due Diligence for Supply Chain Complianceand Risk Mitigation

29
30

UNGC Principle 2

G4-HR12

Number of grievances abouthuman rights impacts filed

This is considered Business Confidential—

LA Labor Practices and Decent Work
G4-LA1

Employee hires and turnover

Employee Development and Education /Our Footprint

106
109

UNGC Principle 6
SDG 5, 8

G4-LA2

Benefits provided to fulltime employees

Employee Development and Education /Comprehensive Benefits

106
117

SDG 8

G4-LA3Return to work and retention
after parental leave

Employee Development and Education /Comprehensive Benefits

106
117

UNGC Principle 6
SDG 5, 8

G4-LA4

Minimum notice periods
regarding operationalchanges

Employee Development and Education /Comprehensive Benefits
3M follows all applicable local laws andregulations regarding notice periods in theevent of business operations changes.

106
117

UNGC Principle 3SDG 8

G4-LA5Workers represented bymanagement-worker healthand safety committees

Health and Safety /Safety and Health Committees

95
100

SDG 8

G4-LA6

Type and rates of injury, lostdays, work-related fatalities

Health and Safety /Injury and Illness Rates

95
102

SDG 3, 8

G4-LA7

Workers with high incidenceor high risk of diseases
related to their work

We are always taking steps to protect ourmost important asset – 3M employees. Ourinnovations are only possible with the minds,
talent and commitment of all of our employees
worldwide, so we put a lot of thought andeffort into keeping them safe and healthy. Our
robust Safety and Health Policy applies to all
3M operations.

—

SDG 3, 8

G4-LA8

Health and safety topics
covered in agreements withtrade unions

This is considered Business Confidential—

3M 2016 Sustainability Report

Index | 167

Cross-Reference (Hyperlinks)
or Direct Answer

Page(.pdf)

GRI
Disclosure
Level

Connections toUnited Nations
Initiatives*

GRI Element

Description

G4-LA9Average hours of training
per employee

Although 3M tracks some training hours,
it is not consistent globally. 3M believesindicators that align results of the people withsuccess of the Company are direct indicatorsof successful development programs (e.g.
Leadership & Employee engagement,
Retention, Brand Recognition, New Product
Vitality Index).

—

UNGC Principle 6SDG 8G4-LA10Programs for skills
management and lifelong
learning

Employee Development and Education /Investing in Our People

106
116

SDG 8

G4-LA11Percentage of employees
receiving regularperformance reviews

Employee Development and Education /Investing in Our People

106
116

UNGC Principle 6
SDG 5, 8

G4-LA12

Employees by category fordiversity indicators

Employee Development and Education /Our Footprint
Corporate Governance /Diversity

106
109
129
137

UNGC Principle 6
SDG 5, 8

G4-LA13

Remuneration of men
to women by employee
category

3M sets and administers compensation basedon external market competitiveness without
regard to gender—

UNGC Principle 6
SDG 8, 10

G4-LA14

Percentage of new suppliers
screened using labor
practices criteria

Responsible Sourcing /Assessing Supplier Performance

29
34

SDG 5, 8, 16

G4-LA15

Negative labor practices
impacts in the supply chain
and actions taken​

Responsible Sourcing /Due Diligence for Supply Chain Complianceand Risk Mitigation

29
30

SDG 8, 16

G4-LA16

Grievances about labor
practices

This is considered Business Confidential—

PR Product Responsibility
G4-PR1

Percentage of productcategories for which healthand safety impacts areassessed/improved

Product Innovation /Driving Growththrough Sustainable Product Stewardship23
24

G4-PR2

Non-compliance concerning
health and safety impacts ofproducts

Product Innovation /Environmental Product Declarations

23
27

G4-PR3

Organization's proceduresfor product labeling

Product Innovation /Product Marketing and Communications

23
26

SDG 12

G4-PR4

Number of incidents for
non-compliance withlabeling

Significant non-compliance with labelingwould be discussed in 3M 2015 10-K Annual
Report—SDG 16

G4-PR5Results of customer
satisfaction surveys

This information is considered Business
Confidential.

—

G4-PR6

Sale of banned or disputed
products​

The 3M Code of Conduct Advertising and
Product Representation Principle addresses
this issue—

3M 2016 Sustainability Report

Index | 168

Cross-Reference (Hyperlinks)
or Direct Answer

Page(.pdf)

GRI
Disclosure
Level

Connections toUnited Nations
Initiatives*

GRI Element

Description

G4-PR7

Non-compliance concerningmarketing communications

Significant non-compliance concerningmarket communications would be discussed in
3M 2015 10-K Annual Report—

G4-PR8Substantiated complaints
regarding breaches ofcustomer privacy

3M respects customers’ right to privacy: see
3M Global Internet Privacy Policy. Significant
non-compliance concerning substantiatedcomplaints regarding breaches of customer
privacy would be discussed in 3M 2015 10-K
Annual Report.

—

G4-PR9Significant fines for noncompliance with provisionand use of productSignificant fines for non-compliance with
provision and use of product would be
discussed in 3M 2015 10-K Annual Report—

SDG 16

SO Society
G4-SO1

Percentage of operations
with local community
engagement, etc

Employee Development and Education /Collaborating with Our Communities /Engaging Locally

106
46
50

UNGC Principle 1

G4-SO2

Operations with significant
impact on local communities

Global Challenges /Managing Enterprise Risk

63
153

UNGC Principle 1

G4-SO3

Percentage of operations
assessed for risks related tocorruption

Corporate Code of Conduct /Commitment to Anti-Corruption

148
150

UNGC Principle 10
SDG 16

G4-SO4

Communications andtraining of anti-corruption
policies

Corporate Code of Conduct /Commitment to Anti-Corruption

148
150

UNGC Principle 10
SDG 16

G4-SO5

Confirmed incidents ofcorruption and actions taken

Corporate Code of Conduct /Commitment to Anti-Corruption

148
150

UNGC Principle 10
SDG 16

G4-SO6

Value of politicalcontributions by country andrecipient​

Corporate Code of Conduct /Political Values

148
152

UNGC Principle 10
SDG 16

G4-SO7

Legal actions for anticompetitive behavior

Significant legal actions for anti-competitive
behavior, anti-trust and monopoly practices
would be discussed in
3M 2015 10-K Annual Report—

G4-SO8

Monetary value ofsignificant fines

Energy and Climate /Environmental Violations and Liabilities
Significant fines would be discussed in
3M 2015 10-K Annual Report

80
83

G4-SO9Percentage of new suppliers
screened for impacts onsociety

Responsible Sourcing /Assessing Supplier Performance

29
34

G4-SO10

Negative impacts on society
in the supply chain andactions taken

This is considered Business Confidential—

G4-SO11

Grievances about impacts
on society

This is considered Business Confidential—

SDG 16Disclosure Levels

Full

PartialNot Disclosed*United Nations Global Compact Principles*United Nations Sustainable Development Goals

INDEPEENDENT ASSURANA
NCE STATTEMENT
Intrroduction andaobjectives of worrk
Bureeau Veritas North
N
Americca, Inc. (Bureeau Veritas) was engage
ed by 3M Co
orporation (3M
M) to
cond
duct an inde
ependent assurance of its
i 2016 3M Sustainabiliity Report (tthe Report). This
Assu
urance State
ement applie
es to the related information include
ed within the scope of work
desccribed below
w. The intend
ded users of the assurancce statement are the sta
akeholders off 3M.
The overall aim of this proce
ess is to provvide assurance to 3M’s stakeholdersson the accuracy,
relia
ability and ob
bjectivity of th
he informatioon included inn the Reportt as describe
ed in the scop
pe ofworkk. The asssurance process also evaluated 3M’s
3manag
gement of sustainabilitty inacco
ordance withh the principle
es of inclusivvity, materialiity and respo
onsiveness.
The information that was asssured and itss presentatio
on in the Rep
port are the solesresponsibility
he managem
ment of 3M. Bureau
B
Verittas was not involved in th
he drafting of the Report. Our
of th
sole
e responsibilitty was to pro
ovide independent assura
ance on its content.
cSco
ope of workk
3M rrequested Bu
ureau Veritas to include in its indepen
ndent assura
ance the follo
owing:


Data inccluded in thee Report for the calendarr year 2015 reporting peeriod as show
wn in
the attacched Summaary of Assure
ed Informatioon;

Approprriateness and robustnesss of underlying reportin
ng systems and processses,
used to collect, analyyze and revie
ew the data subject to the assurance
e process; anndEvaluation of the ReportRin acccordance w
with the Assu
urance Stan
ndard AA10000AS(2008)1 Type 2 assurance.

Exclluded from th
he scope of ouro work is any
a assurancce of informa
ation relating to:Text or otherowritten statements associated withw the Repo
ort;

Activitiess outside thee defined asssurance perio
od; and;

Data rep
ported that iss not included
d in the Sum
mmary of Assured Informa
ation.

Metthodology
Bureeau Veritas undertookuthee following activities:a
1. Interviews with relevant personnel of 3M (inncluding man
nagers and staffsmembe
ers atporate and site level);the corp
2. Review
w of internal anda external documentaryy evidence producedpby 3M;
3. Audit off performancce data pressented in thee Report including a detailed review of asample of data;
4. Visits to manufactu
uring sites loocated in Cordova,C
Illinnois; Hutchinnson, Minnesota;
anda, New York;Y
and Waausau, Wisco
onsin
Tonawa5. Remotee data reviiews for manufacturingmg sites loca
ated in Ne
evada, Misssouri;
Greenvville, South Carolina;Cand Zwijndrecht, Belgium.
6. Visit to 3M headqua
arters office located in Ma
aplewood, Minnesota;
M
an
nd

1

Pub
blished by AcccountAbility: The
T Institute off Social and EthicalE
Accounntability

7. Review of 3M data and information systems for collection, aggregation, analysis andinternal verification and review.
The work was planned and carried out to provide a moderate level of assurance and webelieve it provides a sound basis for our conclusions.

Our findings
On the basis of our methodology and the activities described above:Nothing has come to our attention to indicate that the reviewed information within thescope of our verification is not materially correct.



Nothing has come to our attention to indicate that the reviewed information is not afair representation of the actual environmental and health and safety data forcalendar year 2015.



It is our opinion that 3M has established appropriate systems for the collection,
aggregation and analysis of quantitative data, including energy use, direct andindirect GHG emissions, water withdrawal and fate, waste quantities and disposition,
injury and illness rate, lost day rate, severity rate and number of environmental
violations.



A summary of data within the scope of assurance for 2015 is attached.

Nothing has come to our attention that the environmental, safety, and othersustainability data assured in the Report are not materially correct.



Nothing has come to our attention to indicate that the assured information is not a fair
representation of the actual data for calendar year 2015. It is our opinion that 3M has
established appropriate systems for the collection, aggregation and analysis of
relevant information, and has implemented underlying internal assurance practices
that provide a reasonable degree of confidence that such information is complete andaccurate.



A summary of data within the scope of assurance for 2015 is attached.

Adherence to the AA1000 Accountability Principles
Based on the work undertaken during this assurance process, we are of the opinion that 3M
adheres to the Accountability Principles of inclusivity, materiality and responsiveness as
discussed below.
Inclusivity
Based on discussions with 3M, their processes appear to be inclusive of stakeholders. For
example, 3M commissioned a third party provider to assist with stakeholder mapping andengagement. One of the goals of the work was to identify and prioritize stakeholders basedon a range of criteria including the organization’s perceived level of influence, willingness toengage and the potential benefits of engagement. Subsequently, interviews were conducted
and a quantitative survey was done with internal and external stakeholders. 3M hasdeveloped a list of external stakeholders that includes about 2,000 contacts.
Materiality
3M commissioned a materiality assessment as described in their 2015 Sustainability Report.
The 2015 Sustainability Report explained the materiality assessment which considered theimportance of issues to both internal and external stakeholders. The results of the materiality
assessment were used to develop the 2025 goals that are presented in the 2016
Sustainability Report.

Res
sponsivenes
ssSom
me examples
s of how 3M responds too stakeholde
er regarding sustainabilitty issues throoughconfference callss regarding the Sustain
nability Rep
port, participation in invvestor calls, andresp
ponding to coomments recceived throu
ugh 3M.com. In response
e to shareho
older interestt, 3M
pressented their sustainabilitysy report and goalsgduring the 2015 an
nnual meetingg.

Keyy Observations and Recommen
Rdations forr 2015

3
3M’s commitment to continuous imprrovement in environmen
ntal performa
ance was evident
from the development an
nd implemenntation of Wa
ater Conserv
vation Plans. Also goals havebbeen set for additionalapla
anning in water scarce arreas.

T
The commitm
ment to decrrease potenttial greenhou
use gas emissions is shhown throughh theimmprovementts to air emisssion controlls that speciffically have decreased emissionseof highg
global warminng potential compounds.

C
Community involvementi
ed developm
ment and im
mplementatio
on ofand giving is evidence
S
Stakeholder Engagemen
nt Plans. 3M provide
es community support through VissitingW
Wizards, and many other engage
ements in thetcommunnity.
Corporately, the 3M
F
Foundation providespfundding to a variety recipients.

S
Systems for collectingcand compiling data appear to be succes
ssful for developing theR
Report, although some op
pportunities for
f improvem
ment were ob
bserved at th
he site level.

Stattement of independeince, imparrtiality and competenceBure
eau Veritas is
i an indepe
endent professsional serviices compan
ny that speciializes in Qu
uality,Heaalth, Safety, Social andd Environme
ental manag
gement with over 180 years historry inprovviding indepe
endent assurrance service
es, and an annnual 2015 revenuerof 4..6 Billion Eurros.
No mmember of th
he assurance
e team has a business reelationship withw 3M, its Directors orMannagers beyonnd that of verrification andd assurance of sustainability data andd reporting. We
Whave
e conducted this verificattion independ
dently and we
w believe theere to have beenbno confflictof innterest. Bureeau Veritas has
h implemen
nted a Code of Ethics ac
cross the bussiness tomainntain high ethhical standarrds among staff in their day-to-daydbuusiness activvities.
The assurance teamt
has exxtensive expe
erience in co
onducting asssurance ove
er environme
ental,
social, ethical annd health an
nd safety info
ormation, sysstems and processes,pha
as over 20 yearsymbined experrience in thiss field and an
n excellent u
understanding
g of Bureau Veritas stan
ndard
com
meth
hodology forr the Assuran
nce of Sustaiinability Reports.

Attestation:

Lisa S. Barnes, Le
ead Verifier

Trevor A.
A Donaghu, Te
echnical Revie
ewer

der
Pracctice Line Lead

Technica
al Director

Susttainability and Climate Channge Services

Climate Change
C
Servicces

Bureau Ve
eritas Northh America, Inc.
Denver, Co
oloradoMay 2, 201
16

Summary of Assured Information
Reporting Year 2015
3M Company
Social Performance, Employees

MetricTotal Global Employees at Year‐End(Headcount)

Metric Units

RY‐2015

Total Number

90,4002014‐2015
Annual Change, 2011‐2015 Change,
%
%
‐0.33

7.36

2014‐2015 Annual 2011‐2015 Change,
Change, %%Energy ‐ Metric

Metric Units

RY‐2015

Total Energy Use (Absolute)

MMBTUs28,100,000

‐3.31

5.64

Total Number Part‐Time Employees

Total Number

2,520

‐1.56

‐0.40

Total Energy Use (Absolute)MWh8,250,000

‐3.31

5.64

Total Number Full‐Time Employees

Total Number

87,900

‐0.34

7.59

Total Energy (indexed to net
sales)MMBTUs per Net Sales(MM
$USD)

929

1.86

2.99

Percentage of Female Employees to Total
Employees
Percentage of Female Employees inManagement Positions

%

33.9

0.00

0.89

Total Fuel Oil #1, #2, #6

MMBTUs

1,330,000

‐18.4

142

%

26.9

3.07

12.08

Total Jet FuelMMBTUs153,000

‐4.97

‐16.8

Total Propane

MMBTUs201,000

4.69

51.1

Total Gasoline and Diesel

MMBTUs269,000

28.7

33.2

Total Coal

MMBTUs0

Financial Performance

MetricMetric Units

RY‐2015

2014‐2015
Annual Change, 2011‐2015 Change,%%

Net Sales

Million $USD

30,300

‐4.72

2.36

Total Natural Gas

MMBTUs

14,400,000

‐9.43

‐4.64

Operating Income

Million $USD

6,950

‐2.66

12.5

Total Electricity Consumption

MMBTUs

10,600,000

‐4.50

10.4

Net Income Attributable to 3M

Million $USD

4,830

‐2.62

12.9

Total Steam Consumption

MMBTUs1,130,000

11.9

35.7

Per Share‐Basic

Actual $USD

7.72

1.18

27.6

Per Share‐Diluted

Actual $USD

7.58

1.20

27.2

Total Debt to Total Capital (total capital =debt plus equity)

%

48.0

41.2

92.0

Metric Units

RY‐2015

Capital Expenditures

Million $USD

1,460

‐2.01

5.80

Waste ‐ Metric
Total Waste Generated(Absolute)
Total Waste (indexed to net
sales)
Total Hazardous Waste(Absolute)% Data Coverage Total
Hazardous Waste (Absolute)
Total Nonhazardous Waste(Absolute)
Total Waste Recycled andReused (Absolute)

Metric Tons

211,000

Onsite Recycle & Reuse

Research, Development and RelatedExpensesMillion $USD

1,760

‐0.565

Employee Compensation and Benefits

Million $USD

8,790

‐0.566

Payments to Providers of CapitalMillion $USD

2,700

13.0

52.5

Provision for Income Taxes

Million $USD

1,980

‐2.46

18.6

12.1

1

Community Engagement

MetricMetric Units

RY‐2015

2014‐2015
Annual Change, 2011‐2015 Change,%%

Metric Tons per Net Sales (MM
6.95
$USD)

17.9

8.05

15.0

44,100

7.30

6.78

%

97.0%

‐1.02

1.04

Metric Tons

166,000

1.22

20.3

Metric Tons

231,000

‐1.70

8.96

Metric Tons

65,400

‐5.90

36.5

Offsite Reuse

Metric Tons

31,800‐0.313‐8.88

Offsite Recycle

Metric Tons

134,000

0.000

3.88

Metric Units

RY‐2015

Total Global Giving

Million $USD

72.8

‐10.5

9.76

Million $USD

34.1

10.4

22.2

Water ‐ Metric

Total In‐Kind Donations

Million $USD

38.7

‐38.5

19.4

Total Water Use (Absolute)
Million Cubic Meters
Sites located in Water
Stress/Scarce Areas; water
Total Number
Total Water Use (indexed to net Million Cubic Meters per Net
sales)
Sales (MM $USD)

To be verified in independent audit byothers2.93

Metric Tons

Total Cash Donations1

2014‐2015 Annual 2011‐2015 Change,
Change, %%2014‐2015 Annual 2011‐2015 Change,
Change, %%42.1‐0.888

2.43

25

‐7.41

38.9

0.00139

6.92‐0.714

Summary of Assured Information
Reporting Year 2015
3M Company

Environmental Performance
Environmental Management System ‐MetricTotal Number of Significant Spills

Health and Safety
Metric Units

RY‐2015

MetricTotal Number0

Global Lost Time Incident Rate

Metric Units

2014‐2015 Annual 2011‐2015 Change,
Change, %%RY‐2015

0.32

‐11.1

‐15.8

1.22

‐15.9

‐16.4

Per 100 3M Employees(200,000 work hours)

Number of Significant Fines

Total Number0

Global Recordable Incident Rate
Per 100 3M Employees(200,000 work hours)

Total Monetary Value of Significant Fines

Million $USD

Total Number of Non‐Monetary Sanctions

Work Related Fatalities ‐ 3M
Employees
Work Related Fatalities ‐ 3M
Contractors
Work Related Fatalities ‐ Total
Number0

Total Number0

Total Number

0

Environmental Liability Accrued at Year End Million $USD

0Metric Units

RY‐2015

2014‐2015
Annual Change,%

Air Emissions ‐ Greenhouse Gas Scope 3

Air Emissions ‐ MetricAbsolute Scope 1 Emissions (Direct)

Metric Tons CO2e

3,770,000‐14.1

Category 1 ‐ Purchased Goods
and Services

Metric Tons CO2e

6,860,000

Absolute Scope 2 Emissions (Indirect)

Metric Tons CO2e

1,860,000‐17.0

Category 2 ‐ Capital Goods

Metric Tons CO2e577,000

Total Scope 3 Emissions (Upstream)

Metric Tons CO2e9,500,000

Category 3 ‐ Fuel and Energy
Related Activities

Metric Tons CO2e

621,000

Total Greenhouse Gas Emissions (indexed
to net sales)

Million Metric Tons per
Net Sales (MM $USD)

Category 4 ‐ Upstream
Metric Tons CO2e
Transportation and Distribution

780,000

Category 5 ‐ Waste Generated in
Metric Tons CO2e
Operations

254,000

186

‐10.6

Total Greenhouse Gas Emissions (Absolute‐
Million Metric Tons CO2e 5.63
Kyoto and Non‐Kyoto)

Total Volatile Organic Compound Emissions
Metric Tons
(Absolute)
Total Volatile Organic Compounds
Emissions (indexed to net sales)

4,770

Metric Tons per Net Sales
0.157(MM $USD)

Total Number0

Total Number

0

Units

RY‐2015‐14.1

Category 6 ‐ Business Travel

Metric Tons CO2e55,800‐9.75

Category 7 ‐ Employee
Commuting

Metric Tons CO2e356,000

Category 13 ‐ Downstream
Leased Assets

Metric Tons CO2e

<1000

Customer GHG Avoidance
through 3M Product Use using
2015 Sales Volume

Million Metric Tons CO2e

Other
14