2018 Sustainability Report

3D Text: Improve
Demond Rachon Bryant Jr., 2018
Juxtaposition Arts
We tapped youth design apprentices at
Minneapolis, MN based Juxtaposition Arts
to interpret Sustainability at 3M and design
this cover. Learn more inside.

A Sustainability story
suitable for framing
3M has a history of contributing to organizations that
improve the lives of people in their communities.
This year, the tables have been turned. An organizationthat improves the lives of people in its community iscontributing to 3M.
More specifically, Juxtaposition Arts (JXTA) has made astrong, artistic contribution to the cover and inside pagesof this year’s 3M Sustainability Report.
Located in North Minneapolis, JXTA is an inner-city arts
organization that provides young artists with paying jobs
and a creative learning environment while championing
the revitalization of the community that surrounds it.
JXTA students come from all over the MinneapolisSt. Paul area to be employed here while learning
professional design, production, and marketing skills in
one of five educational studios.
“We have studios that train kids in Textiles & Screen
Printing, Environmental Design, Graphic Design,
Contemporary Art, and Tactical Urbanism,” says Bobby
Rogers, JXTA Graphic Design Lab Lead. “The primary
focus of these studios is to prepare each student beyond
where they’re expected to be at their age, so when they
complete their training they can move forward in theirlives, whether they’re headed to college or into thereal world.”(Left to right) Demond “DJ” Bryant, Patricio De Lara, and Avahnii Lewis

This talented young trio immersed themselves in learning
about Sustainability at 3M, and followed a formal design
process, initiated by the report’s design agency BBDO,
to generate an art concept that would capture the spiritof “Improving Every Life”. They developed dozens ofpotential concept “sketches”, worked with BBDO and
3M to narrow them down and eventually collaborated
with each other to refine and extend the chosen concept.

Amanda Riley, BBDO Account Supervisor, says:“Right off the bat, JXTA asked us to treat them like wewould any other vendor partner despite the age andexperience level of the apprentices. While there weremore ‘teaching’ opportunities than we would have forour typical vendor partners, we tried to stay true to ourstandard creative development and review process.”
Chris Corum, BBDO Creative Lead, agrees. “Theapprentices didn’t disappoint. From the beginning, they
were engaged with 3M as a client and the Sustainability
Report as a creative challenge to solve. They embraced
the challenge, bringing multiple options of concepts
and executions throughout the entire process. Theirproficiency with design software and the other tools ofcreative professionals was impressive, far exceeding my
expectations for designers so young.”
About the experience, Demond, a high school junior who
wants to someday work in visual development for video
games, says, “This experience definitely pushed myabilities to the limit – and that’s a good thing.” Avahnii, ahigh school sophomore who may go into art, politics,
or law, says, “I feel like 3M and BBDO helped us withall of our concepts, to make sure everything had ameaning.” Patricio, a college sophomore who is apassionate believer in telling stories with art, adds, “I’ve
learned that no matter how well you can draw, you stillneed that core idea.”

After completing their work on the 3M Sustainability
Report project, the three apprentices will join about 70
other youth in working this summer at JXTA on otherclient jobs, preparing themselves for what’s next in theirprofessional lives – and working on projects that help thenorth Minneapolis community thrive.
Reflecting on the process, Demond says: “I’m going tobe better prepared when I eventually go out into the realworld, because this is what the real world is like.”
Patricio is in the same camp: “Getting this experiencehas been immense.”
And what about the finished product, Avahnii? “I think itreally gets the message across that Sustainability is wise.”

When 3M discovered the community-building missionof this institution, it asked three apprentices from JXTA’s
Graphic Design studio to develop the original art used inthis year’s Sustainability Report: Demond “DJ” Bryant,Avahnii Lewis, and Patricio De Lara.

2 | 3M 2018 Sustainability Report#improvinglives | 3

Contents

Our Leadership

Feature Stories

Every Life

Who We Are

How We Work

What We Create

Message from our CEO

6

Innovating with Purpose

12

Introduction

44

Introduction

58

Introduction

84

Introduction

180

Message from our CTO

8

Purpose Inspired Impact

24

Global Challenges

46

62

Corporate Governance86

Our Customers

182

Materiality

48

Our Values, Vision, andStrategies

Enterprise Risk

94

188

2025 Goals

54

Communities

64

Innovation Management
Our Products

198

72

Corporate Code of
Conduct

98

Engaging Our
Stakeholders

Human Rights

Diversity and Inclusion

76

106

Compensation

114

Employee Programs

118

Health and Safety

130

Environmental
Management

138

Raw Materials

144

Water

152

Climate and Energy

156

Suppliers

168

About Report
Report Scope andBoundaries

204

Indices to GRI and
UNGC

208

Assurance Statement

220

Metric Tables

226

A message fromInge G. Thulin
In partnership with our customers, 3M uses
science every day to improve lives and help
1-2
solve society’s toughest challenges – fromclean air and clean water, to advanced health care andfood safety. We recognize the unique and inspiring
opportunity we have: to grow our enterprise while
making the world stronger, safer, and healthier.
G4

SD

To that end, we remain committed to making significant
investments in Sustainability-inspired innovation. In 2017,
3M invested $1.9 billion in research and development, as
we continue inventing and manufacturing cutting-edge
Sustainability solutions. Last year, in fact, 3M products
helped our customers reduce their greenhouse gas
emissions by 13 million tons.
Our commitment to Sustainability extends to our own
operations, and has for decades. In 1975 we launcheda pioneering program called Pollution Prevention
Pays, which empowers 3Mers to find creative ways
to make our company more efficient. This initiative
continues today, and has led to 15,000 projects thathave prevented two million tons of air, water, andwaste pollution.
Last year we also continued to make progress on our
2025 Sustainability Goals, which we laid out three years
ago. These include investing in sustainable materials,
increasing energy efficiency and water management,

6 | 3M 2018 Sustainability Reportand doubling 3M’s pipeline of diverse leaders. Additional
achievements from 2017 include:•

We convened customer conversations focused on
Sustainability, and embedded Sustainability into ourbusiness strategies globally.

•

We invested more than $70 million to support
education, environmental, and other programs in
our communities.

•

We launched 3M Impact, a skills-based service
program that sends 3Mers to communities aroundthe world to help solve a pressing need.

•

We received the prestigious Catalyst Award forour leadership in advancing diversity and inclusion,
while receiving 100 percent scores on the LGBTQ
Equality Index and Disability Equality index.

Going forward, we will continue to invest in developing
products that help our customers reach their goals,
while increasing our own Sustainability efforts inaccordance with the United Nations Global Compact
and its principles.
Thank you for joining us in this journey toward improving
every life.
Inge G. Thulin
Chairman of the Board,
President and Chief Executive Officer, 3M#improvinglives | 7

A message fromJohn P. Banovetz
As Senior Vice President of Research and Development
and Chief Technology Officer, I have the opportunity
each day to see how our technologies, our science, andour people help to solve some of the world’s greatest
challenges and improve lives.
Whether it is through the incorporation of sustainable
materials in our products or helping customers be moresustainable, we recognize that societal challenges both
require and provide opportunity for game-changing
innovation. At 3M, Sustainability serves to drive
innovation – in our manufacturing, in our products, andin new technologies.
It’s inspiring to see how working toward a greater good,and doing so with creativity and collaboration, sparks
new ideas and applying science to life, drives progress.
Furthermore, it is inspiring to see how individual
contributors can create positive change to drive business
opportunities as well as personal fulfillment – something
I see within 3M teams every day.
As we look to further leverage Sustainability to enable
innovation across the company, in partnership withcustomers and partners, we are thankful to be doing so
on a foundation of science and innovation. We continue
today to be a leader in Sustainability, while recognizing
our unique capability to innovate in ways that serve bothbusiness growth, advance every company, enhance
every home, and improve every life.
John P. Banovetz
3M Research and Development Lab

8 | 3M 2018 Sustainability Report

Senior Vice President,
Research and Development and Chief Technology Officer#improvinglives | 9

Feature
storiesInnovating with purpose

12

Playing it cool in data centers

Breathing easier in the face of air pollution

12
14
15
16
18
19
20
22
23

Purpose inspired impact

24

Making an impact on individuals, communities, and the world

24
26
28
30
31
32
34
36
38

For decades, holding securely to the concept of greener chemistry
3M facility spotlight: Stafford Springs, Connecticut
3M facility spotlight: Sumaré, Brazil and 3M Brazil Institute
3M facility spotlight: Tuas, Singapore
3M yellow carpet project puts students on the right path
Biodegradable mulch material gets field test
Stand up for less plastic in landfills

Support (and applause) for the next generation of vocational professionals
How a 3M community is attracting a skilled workforce
3M Pro Bono Committee advocates for the unrepresented
3M Brockville, Ontario plant a leader in emissions reduction
Sustainability, as viewed from the summits
Consumer business group pilots Supplier Responsibility Code new assessment process
Turning trays into trees
Customer first partnership in West Europe: 3M and BASF
A partnership with students that helped produce something essential toremote Canadian communities: Fresh foodConservation at 3M includes hearing

39
40

Playing
it coolin datacenters

With the explosive growth of the internet, artificial
intelligence, cloud computing, and high-performancecomputing (HPC), data centers are powering dramaticchanges not just in business but in quality of life.
However, with this constant use of data, it’s no surprisethat data centers are working hard to keep up, presenting
both great opportunities and great challenges.
One of the biggest challenges is the massive amount ofenergy that data centers consume in order to operate.
In the U.S., for example, data centers consume some2 percent of the total energy consumption according to
the U.S. Environmental Protection Agency (EPA), muchof it simply to run chiller units and fans to air-cool thecomputing hardware.
To help alleviate the cost of server cooling and its impact
on the environment, 3M is helping lead the immersion
cooling revolution for data centers.

How does immersion cooling work?
Immersion cooling involves putting electronics directly
in a non-conductive fluid, allowing heat to be transferred
directly from components into the heat transfer fluid.
In traditional cooling systems, heat must transfer
through several levels of thermal interface materials,
air, heat exchangers, and working fluids. Immersion
cooling simplifies thermal design and increases heattransfer efficiency.
Liquid immersion cooling using 3M fluids contributes
to a lower cost of ownership in many ways. As efficientheat conductors, they need less cooling machinery andless space between components. The improved cooling
capacity means you can position electronics closer
together – so you can fit 10 times the compute density
in a given space. And with greater thermal efficiency,
processing power can be increased dramatically.
Finally, liquid immersion cooling eliminates airborne
contaminants and simplifies thermal design to reduce
moving parts. This means data centers can run theirelectronics at full capacity with less wear and tear.
Learn more about the secret formula making a splash byhelping protect your tech: here
12 | 3M 2018 Sustainability Report#improvinglives | 13

For decades, holding
securely to the conceptof greener chemistry
For nearly half a century, the formula for success with
Scotch® Brand adhesive products has involved morethan their ability to stick. It’s based on green chemistry
principles that have helped 3M move away from thesolvents often associated with adhesives.
In 1968, 3M replaced the solvent adhesive previously
used in Scotch® Magic™ Tape and Scotch® Brand
single-sided Home & Office Tapes with a water-based
adhesive invented by 3M scientists. Scotch® Brand
Packaging Tapes, meanwhile, have been made with asolvent-free adhesive for more than a decade, a rarity inthe packaging tapes category.
The science of Scotch® Brand products hasn’t stopped
there, either. Scotch® Greener Home and Office Tapes
are made from 65 percent recycled or plant-basedmaterials and all Scotch® Super 77™ and Scotch® Spray
Mount™ Spray Adhesives sold in the U.S. comply withthe lower VOC limits set by the California Air Resources
Board (CARB) in January, 2017.

3M facility spotlight:

Stafford Springs, Connecticut
The 3M facility in Stafford Springs, CT manufactures
filters and filter cartridges for the 3M Industrial
Business Group and the Separation & Purification
Sciences Division.
One of those products, 3M™ Zeta Plus™ Series Filters,
are used in the biopharmaceutical industry, increasing
operating efficiencies over conventional plate andframe filters and improving the manufacture of critical,
life-saving drugs.
Another product, 3M™ DF Series Filters are used in awide range of process industries, from coatings to foodand beverage, and provides up to three time more life
than most conventional bag filters. This minimizes filter
change-out and disposal cost, product loss, labor, andoperator exposure to process fluids.

Both of these products help 3M customers achieve
high-quality end product, which supports our Vision of“3M technology advancing every company”.
And as much as our products do for people, Stafford
Springs personnel also do for people. Our Connecticut
Community Relations Council provides support toUnited Way, Invention Convention, Supplies for Schools,
and Supplies for Non-profits. We also support our local
schools with grants for STEM-focused development
including the high school robotics team. And employees
also participate in two volunteer events each year. For
example, 20+ employee volunteers and family members
participated at the local food shelf for a day, assisting inpacking and delivering food for those in need.

3M’s dedication to reducing the impact Scotch® Brand
products have on the environment has been producing
positive results for a long time.
In short, it’s how we roll.

14 | 3M 2018 Sustainability Report#improvinglives | 15

3M facility spotlight:

Sumaré, Brazil
Sumaré is a city of 250,000 located about 90 minutes
northwest of São Paulo, Brazil’s largest metropolitan
area. Almost 1,900 employees work at the 3M facility
here, supporting abrasives, adhesives, tapes, consumer,
automotive, and health care products. Among them
are an increasing number of products that support thecompany’s commitment to Sustainability. Two examples:•

Ponjita™ Natural Fiber Bath Sponge is made ofnatural malva and jute fibers plus recycled PET(polyethylene terephthalate) fiber, water-based
resin, and mineral. Production of this sponge
consumes fewer resources and less energy – andgenerates less waste – compared to a single-use
exfoliating sponge.

•

3M™ Transparent Multipack Tape 694 is a clean
removal tape that replaces packaging films as amultipack solution. Compared to shrink wrapping
film, Multipack tapes reduce the amount of energy
consumed in production. In addition, experiments
replacing customers’ shrink wrapped plastic
packages with multipack showed a 25 to 30
percent reduction in plastic waste per year. This
product, which was originally developed in Sumaré,is now being replicated by 3M around the world.

The 3M Sumaré facility also houses the 3M Brazil
Institute, a non-governmental organization (NGO)funded by 3M Brazil to promote the entrepreneurship offuture generations, based on ethical values, citizenship,
and Sustainability.
In 2017, 3M Brazil, in partnership with the 3M Brazil
Institute and São Paulo University, sponsored the fifth
annual Science Challenge and Exhibition, to boost student
interest in science; and to prepare teachers to teach it.

16 | 3M 2018 Sustainability Report

Most Brazilian students in public schools come fromfamilies with low income, which often impacts theirperspective on careers and life. They assume they will
follow in their parents’ footsteps. They do not see how
far they can go by studying and working hard. But when
they are motivated to do more in science, it can expand
the limits of their world.
The 2017 program started with 120 teachers frompublic schools in 32 cities around Sumaré and Ribeirão
Preto who attended a course in Science Practiceand Methodology. The course included online andin-classroom content, and, at the end, each teacher who
completed the course was presented with a certificate
recognized by the São Paulo government. There was also
one other requirement for receiving those certificates:
teachers must have at least one student share his or her
project at the 3M Institute Exhibition. The projects are
the students’ own innovative solutions to problems that
occur in daily life. In 2017, 102 projects were chosen as
finalists. Seventy-two 3M volunteers helped judge theprojects, and awarded prizes to students they felt had
the best three projects in each of seven categories.
For this competition and other contributions, the 3M
Brazil Institute has had a huge impact on students
and teachers, who can often be the difference in how
students view opportunities. In the last four years, 198
teachers have been trained and certified as part ofthis program.
3M Brazil has been a subsidiary of 3M Company
since 1946.

#improvinglives | 17

3M yellow carpet project puts
students on the right path
The safety of a child is a high priority for any parent.
Whether it be at home, in a car, at play, or at school,
mom and dad want their children surrounded byprotective environments.

3M facility spotlight:

Tuas, Singapore
3M has been improving lives in Singapore for more than
50 years. After starting in the 1960s as a regional trading
operation with eight employees, it has grown into a
company with more than 1,600 employees, and has
established local capabilities to serve the needs of local,
regional, and global customers.
Nowhere is this stated more emphatically than at the
3M Tuas manufacturing facility.
This facility, first opened in 2009 in the western regionof Singapore, manufactures products for personalsafety, traffic safety, automotive aftermarket, industry
and health care customers, employing many innovative
processes and technologies. Among them: extrusion
coating, precision clean coating, microreplication,
printing, and solventless adhesive coating.
And what is made here is matched by what isconserved here.
The Tuas facility is a zero-landfill site – 100 percentof the waste generated is converted into energy or
recycled. In the recycling category, 3M partners with agroup of innovative vendors in this part of the world toturn waste into reusable items. One vendor, for example,
takes waste plastic film, cuts it into sheets, and crushes
the sheets into flakes to create a polycarbonate alloy
resin that is then molded into trays (see photo above).

18 | 3M 2018 Sustainability Report

Other plastic waste products are processed into
different types of resins used to create wall switch
covers, electrical casing, films and bags, stripping bands,
stationery, and other household products.

In Korea, this is especially important at school crossings.
According to The Korea Times, police data reveals
that nearly 80 percent of fatal car accidents involving
children were reported in or near school crosswalks.
Experts suggest these accidents can either be caused bylack of attention to approaching vehicles on the part ofstudents, or by speeding or lack of caution on the partof drivers.

With that sobering statistic in mind, 3M Korea went
to work to make crossings safer for students. They
collaborated with local communities, the International
Child Rights Center, and other non-governmentorganizations through seminars and volunteer programs,
to better understand the fundamental issues of roadsafety. Then they launched the Yellow Carpet project,creating bright yellow paths and signs with 3M graphic
films, to catch the attention of both drivers and children.

Also at Tuas, 3M is in the process of voluntarily installingand operating a 2.2 megawatt photovoltaic solar systemthat, when complete, will provide up to 10 percent of the
facility’s energy requirements.
It’s probably no coincidence then that, since opening,
Tuas has gained ISO 14001 (environmental management
systems), ISO 9001 (quality management systems), ISO
13485 (quality management systems – medical devices),and OHSAS 18001 (health and safety management
systems) certification – and won numerous awards foreverything from innovation to technical excellence,pollution prevention, ergonomics, and safety. In 2017,it was honored with a Singapore HEALTH Award,
courtesy of the Singapore Health Promotion Board,in recognition of its strong commitment to promoting
workplace health.
This is a location that seems to win at whatever it does.

#improvinglives | 19

Biodegradable mulch
material gets field test
The University of Nebraska-Lincoln (UNL) has specialty
crop research plots in eastern and western Nebraska
where the research has little to do with crops, and muchto do with fabric of 3M-developed biodegradable mulchthat covers the soil within each row of plants.
Biodegradable mulch, also known as biomulch, is a fabricthat is made from polylactic acid (PLA), derived fromcorn, not petroleum.

20 | 3M 2018 Sustainability Report

PLA material is not new. Among other applications,it’s used in medical sutures which are engineered todegrade over time. But the USDA has stringent standards
for PLA-based biomulch. It must not contain any fossil
carbon and it must be reasonably degradable in soil
within two years. The study underway now in Nebraska
will evaluate the rate of biomulch degradation in soil
and track the ultimate fate of material as either carbon
dioxide (CO2) or soil organic matter.

The research being conducted in these plots will
determine whether this 3M fabric can work for
USDA-certified organic vegetable production. Morespecifically, it is to determine whether the fabric willbiodegrade after the crop is harvested, not remain in thesoil over the long-term or have to be removed by hand.

Research is timely for organic production practices
because the demand for organic foods is growing
faster than the supply. According to the Organic Trade
Association, organic food sales in the U.S. increased 8.4
percent in 2016, compared to an increase of 0.6 percent
in total food sales.

Dr. Sam Wortman, assistant professor of environmental
horticulture in the UNL Department of Agronomy
and Horticulture, says, “We are partnering with 3M
Company’s Corporate Research Labs (CRL) to evaluate
bio-based fabric mulches that provide season-long weed
suppression, conserve soil moisture, and can be left
in the field and incorporated into soil at the end of thegrowing season.”

Final results of the UNL research are expected tobe released in November 2019; two years after
the biomulch was initially incorporated into thesoil. However, periodic updates on the progress ofdegradation will be made available.

#improvinglives | 21

Stand up for less plastic in landfills
Unfortunately, a lot of plastic ends up in landfills today.
In fact, almost 80 percent of plastic that’s discarded
goes there, compared to 12 percent that is incinerated
and 9 percent that is recycled. Increasingly, however,companies like 3M are looking to create products that
support a circular (“refurbish, reuse, recycle”) economy
that helps keep a greater volume of discarded plastic in
the recycled world.
One such example is the 3M™ Precision Standing Desk.
Not only does this sit-stand workstation allow you toalternate between sitting and standing at work, its virtues
can also be measured in environmental Sustainability.

Here’s why: the 3M Precision Standing Desk is madewith 45 percent postconsumer recycled content and,as such, can help a company achieve LEED® 2009
Green Building Certification EB O&M MR Credit 2.2
Sustainable Purchasing: Durable Goods, which requires
a minimum of 10 percent postconsumer material. This
is in addition to its height and tilt adjustability, whichenables workers to precisely set their most comfortable
standing work position.
In other words, the more you see of the 3M Precision
Standing Desk in offices, the less plastic you’ll see
heading for landfills. Which is, from every perspective,
something to stand up for.

Breathing easier inthe face of pollution
As a purpose-driven business, 3M is continually looking
to apply its core technologies to challenges that affectpeoples’ lives. One such challenge is air pollution.
More than 7 million premature deaths can be linked
to air pollution every year, according to the World
Health Organization.
Air quality guidelines are not confined to Asia. Parts ofPakistan, Saudi Arabia, India, and many other places
around the world also face significant health risks due to
air pollution – from vehicle exhaust, agricultural burning,
power generation, and even natural occurrences such as
volcanoes, sand storms, and forest fires.
It’s a cloud of concern that led 3M to launch a line ofrespirators that helps protect wearers from breathing
in air pollution particles. Our 9001V respirator filter

22 | 3M 2018 Sustainability Report

media is capable of filtering at least 90 percent of
non-oil-based particles such as PM2.5, dust, pollen, andautomobile exhaust particles. Our 9501V model filter
media is capable of filtering at least 95 percent of thosesame particles. Of course, users have to follow the user
instructions and select and use the product properly toobtain desired results.

3M’s line of respirators
use filter media capable offiltering 90 or 95 percent
of airborne particles.
#improvinglives | 23

Making an impact on individuals,
communities, and the world
When 3M Senior Manufacturing Technology Engineer
Michelle Ji was asked about the value of participating inthe 3M Impact program in Vietnam, she answered withan African proverb: “If you want to go quickly, go alone.
If you want to go far, go together.”
Going far and going together are what the 3M Impact
program is all about.
This initiative, piloted in 2017, gives 3M employees anopportunity to lend their business skills, experience,and energy to local nonprofit organizations, social
enterprises, and government agencies in markets
where the need is great and the work is relevant to
3M’s businesses. The idea was inspired by feedback
from employees globally who said they were seeking
impactful, skills-based community engagement
opportunities.

How 3M Impact Makes an Impact
According to 3M Impact Program Manager Meghan
Faricy, it offers benefits to at least three key
stakeholders. “It helps our 3M participants develop
leadership and cross-cultural skills. It helps the 3M brandexpand its universe. And, most important, it helps local
communities solve pressing problems.”
The Participants
For 2017, the 3M Impact program team sought 50
employees who wanted to share their talents withthe world.
These final participants came from across the company– 3M Corporate as well as all five business groups.
Applicants averaged 10 years of service at 3M withcompany start dates ranging from 1975 to 2015.
The Timeline
3M Impact is another way for 3Mers to embrace theiropportunity to spend their time on a project of theirchoice as part of our 15% Culture. Before traveling totheir destinations, 3M Impact program participants
spent time for the preceding six weeks involved inteam building and backgrounding on the social needsin their project location. Then they traveled to one offour locations – Hanoi or Ho Chi Minh City, Vietnam;
Jakarta, Indonesia, or Kuala Lumpur, Malaysia – where,
for two weeks, they helped local organizations develop
solutions within the confines of real-world resources andlocal challenges.
Ideal partners for 3M Impact are small, community-level
organizations, like HappyTap Co., Ltd. Based in Ho
Chi Minh City, Vietnam, HappyTap is a young, social
enterprise dedicated to promoting hand washing asa simple, inexpensive way to prevent the spread of
disease, particularly among children. One of HappyTap’s
solutions is a portable washing station named LaBobo(“washing sink” in Vietnamese). HappyTap aims tomarket LaBobo in 15 provinces in southern Vietnam, a

24 | 3M 2018 Sustainability Reportmarket of 5.2 million households. Educational campaigns
on the topic of hand hygiene are not unique, but, until
LaBobo, there had been no handwashing device that
helped people change “knowing” into “doing.” A fourperson 3M Impact team spent two weeks with HappyTap
managers collaborating on a promotion, distribution andcommunications plan to market LaBobo, kicking off on
Global Hand Washing Day, October 15.
About the experience, Kris Hansen, one of the 3Mers
who worked with HappyTap, said, “The 3M Impact
program serves the dual purpose of making a realand personal global impact at a company committed
passionately to pursuit of a social mission, and providing
the most significant and impactful professional
development experience I’ve ever had.”
Future impact
According to Faricy, 3M is considering a number ofpossibilities for expanding 3M Impact in the future, fromaddressing needs in more regions across the globe tomatching up 3M business groups, areas, or divisions
with specific business or societal opportunities. Eachpossibility will be evaluated based on the success andoutcomes of the 2017 program.
When asked to elaborate on her feelings about the 3M
Impact program, Michelle Ji said, “We need to start
thinking of each other as global citizens in a global
community. As 3M is a global company, its employees
should have a global mindset and experience teams andcultures outside of their own.”
Part of the credit for making the 2017 Impact program
successful goes to our implementation partner, Pyxera
Global. Pyxera is recognized and highly regarded
globally for developing safe, effective, engaging
business and community partnership projects.
To learn more on the 3M Impact program, including avideo highlighting some of our 2017 teams, please see
here.

#improvinglives | 25

Support (and applause)
for the next generation of
vocational professionals
The Wall Street Journal headline said it was “the thrill ofvictory in welding, baking and bricklaying.”
Officially, it was the Worldskills™ International
Global Competition, the world’s largest vocational
skills competition, comprised of 51 different skill
categories, held in Abu Dhabi, United Arab Emirates, in
October 2017.
Since 1950, Worldskills has been raising the profileand recognition of skilled people, and showing how
important skills are to achieving economic growth andpersonal success. Regional competitions are held ineven-numbered years and winners move on to the global
competition in odd-numbered years.
This year’s event, for which 3M was a Global Industry
Partner, featured 1,300 competitors aged 25 and underfrom 77 different countries, each demonstrating heror his proficiency in a particular category. Categories
included everything from hair dressing to mobile
robotics to, yes, welding, baking, and bricklaying.
Winners received gold, bronze, and silver awards.
In addition to the competitors, the event was attended
by representatives from government, trade industries,
educational institutions, and partners, who came toexperience the competition and participate in an array ofeducation and skill-focused conferences.

26 | 3M 2018 Sustainability Report

For 3M, Worldskills aligns well with the company’s“Every life ambition,” says 3M European business
manager for Sustainability, Rich Miles. “We bothrespect the social and physical environment, focus on
Sustainability, drive global growth, and utilize innovativetechnology and superior quality to provide value andservice to our customers.”
Worldskills also aligns well with 3M’s product portfolio,
since approximately 80 percent of the skills categories
in the competition make use of 3M personal protection
equipment. And, in all, eight different 3M divisions haveproducts that are used in various categories.
Beyond the competition, 3M was represented inthree showcase spaces, which ran concurrently withthe competition: a corporate Sustainability space
showcasing 3M’s core technologies; a “try a skill”
space for health and safety solutions; and a car painting
and repair space, which featured a live demo of car
wrapping. Further, 3M partnered with BASF to sponsor
the first Sustainability award at Worldskills.
All of this seemed especially timely given the state of
employment among youth around the world: 73.3 million
youth are unemployed, and without the skills needed toacquire employment. The market needs advocates, likeWorldskills, to promote the value of learning a skill.

#improvinglives | 27

This initiative also helps fund professional development
for teachers and provides scholarships for students
focused on continuing their education in STEM (Science,
Technology, Electronics, and Mathematics) careers.
The program has had a significant impact on enrollment
in “pathway” classes like welding and drafting, withstudent numbers increasing more than 500 percent in
the last four years.

How a 3M community is
attracting a skilled workforce
The buzz around vocational skills training today isn’t justthe sound of welding equipment or electric saws. It is thedemand being heard worldwide for job applicants thathave vocational skills.
Employers like 3M in small-to-medium sizedcommunities everywhere have been facing an ongoingshortage of skilled-labor candidates. By all accounts, thegap between open positions and qualified job candidates
will widen in the coming years. In Hutchinson,
Minnesota, this challenge prompted businesses,
educators, and city government officials to collaborate
on a $1.36 million effort to educate students about
manufacturing – a first of its kind effort in the state.
The three-year “TigerPath” initiative – developed by 24
local businesses, along with Hutchinson High School,
Ridgewater College and the Hutchinson Economic
Development Authority – is designed to help build atalent pipeline between the high school in Hutchinson
and local advanced manufacturing employers.

28 | 3M 2018 Sustainability Report

Hutchinson High School already provides hands-onclassroom training in welding and mechatronics, a
combination of electronics and mechanical engineering.
However, the community saw a need for additional
strategies to expand the local talent pool.
Among them: enabling students to earn college andindustry credentials before graduating from high school;changing stereotypes by showing students and parents
what careers look like in the 21st century; cultivating
school-employer relationships; dramatically upgrading
career and technical education facilities at the highschool; and creating Tiger Manufacturing, a real-world
business, based in the high school, that makes real
products for real customers.
Thanks in part to a donation from 3Mgives, students at
the high school are now able to learn real-life skills they
can use when they graduate and move on to a two-year
vocational college or even a four-year college.

The City of Hutchinson has also received widespreadrecognition for its work on the TigerPath program. It
has won a “City of Excellence” award from the Leagueof Minnesota Cities, a “Local Government Innovation
Award” from the Humphrey School of Public Affairs,
as well as visits from U.S. senators and congressional
representatives from Minnesota. Miles Seppelt,
Economic Development Director for the city, has also
made presentations throughout the state, explaining
the rationale and mechanics of putting together sucha program.
“We’re really creating a new national model for how
to address the need for a skilled workforce,” says
Seppelt. “We identified a need for skilled workforce
development, and the response from our local
manufacturing community – including 3M – hasbeen sensational.”“3Mgives invests in initiatives like the TigerPath program
not only to develop a diverse talent pipeline for 3M
communities,” says Matt Ladhoff with 3Mgives, “butto raise interest, awareness, and exposure to relevant
career opportunities that students can benefit from intheir own communities.”

There’s a pride that
our company is
stepping forward
and supporting this.
We want to see thisbecome the templatefor communities andfacilities like ours to beable to replicate to fillthat pipeline.
Joe Nelson
Plant Engineering Manager, 3M Hutchinson

Adds Joe Nelson, Plant Engineering Manager at 3M
Hutchinson, “There’s a pride that our company is
stepping forward and supporting this. We want to see
this become the template for communities and facilities
like ours to be able to replicate to fill that pipeline.”
The 3M Hutchinson plant started manufacturing Scotch®
Brand Cellophane Tape in 1947. Seven decades later,
Scotch® Magic Tape, ScotchBlue™ Painter’s Tape, airfiltration products, multiple films, and more are madethere. 3M Hutchinson is the city’s largest employer, withmore than 1,700 workers in the town of 14,000.

#improvinglives | 29

What do these four compelling stories have in common:
•

•

•

•

A young Syrian college student seeks help fleeing
the brutal conflict occurring in his homeland.
Attorneys, working pro bono, come to his aid, andeventually he is able to obtain a residency permit inEuropeAfter 11 years of advocating for their client, a legal
team wins an appeal to vacate the death penalty
previously imposed on a Texas man
At workshops in Germany and China, lawyers offer
tailored legal training and legal advice to local social
networks
In India, a lawyer speaks about professional ethics
and values in a skills training program organized by
an NGO that works for the underserved and people
with disabilities

What these stories share, first of all, is their alignment
with Goal 16 of the United Nations Sustainable
Development Goals, which calls for the promotionof peaceful and inclusive societies for sustainable
development, access to justice for all, and theestablishment of effective, accountable institutions at
all levels.
What they also have in common is the 3M Pro Bono
Committee, a group that for decades has leveraged
the legal skills and experience of 3M Legal Affairs
professionals in the name of good corporate citizenshipand community support.
For the last four years, Maureen Harms, 3M associate
general counsel, has led the committee’s volunteer
efforts to educate and represent low-income andunderrepresented clients through partnerships with“good works” organizations. In recent years, these
efforts have expanded to include the U.S., Europe, Latin
America, and Asia.
According to Harms, working outside the day-to-day
confines of the corporate world opens up one’s mind
to think differently. “Our lawyers gain significant
experience learning how to work outside of their corecompetence. They can see themselves contributing
in a real, significant way to make a difference. The
feedback from clients is immediate and gratifying.
At the same time, the experience exposes legal

30 | 3M 2018 Sustainability Report

professionals to new areas of the law. It broadens
perspectives while sharpening legal analysis and client
communication skills.”
Harms also says pro bono efforts create opportunities
for 3M legal professionals to make connections withpeers at 3M who might be able to help them at work in
the future.
In all, 125 3M legal professionals logged more than 1,900
hours of service with several nonprofits in 2017.
Harms says projects are selected based on two criteria:“One, is it a project of interest to the lawyers in theoffice? It needs to be a cause they believe in. And two,can we partner with an organization that will help us
develop the legal confidence we need to address the
subject at hand?”She cites the legal department’s collective responsibility
as the key to performing their highest quality work.
“The scientists here at 3M have really set that example,”
Harms says. “Within two calls, you can get the world’s
expert on a particular topic. We pride ourselves inoffering the same quality of legal service within our
global legal network.”More on the Pro Bono Committee’s work can be found:here.

3M Pro Bono
Committee
advocates
for theunrepresented

3M Brockville, Ontario plant aleader in emissions reduction
In January 2017, the Canadian province of Ontario
introduced a carbon cap and trade system designed to
reward businesses that reduce their greenhouse gas(GHG) emissions.
Facilities in Ontario that emit 20,000 tons or moreof CO2e each year are required by law to participate
in this program, which supports the province’s 2020
GHG pollution reduction goal. Facilities that emit
10,000–20,000 tons of CO2e – such as the 3M tapemanufacturing plant in Brockville – can voluntarily join.
Which 3M Brockville did.
Volunteering to participate supports 3M’s 2025
Sustainability Goals around climate and energy. In
addition, it provides the tape manufacturing facility witha $657,000 benefit over three years. Facilities that don’t
participate in the cap and trade system pay a “carbon
tax” of 3.34 cents/cubic meter of gas purchased.
3M Brockville will also serve as a pilot site for all aspectsof Ontario cap and trade, which is expected to expand toother Canadian provinces in future years.

Platinum level with ISO 50001 Energy Management
Certification in 2012.
It achieved this status in part by installing combined
heat and power (CHP) engines, which allow 3M togenerate power internally while still being connectedto the grid. In cold weather months, the heat createdby the CHP engines is used to warm the facility. Yearround, it is used for manufacturing processes that
require heat.
Other projects associated with Brockville’s ISO 50001
platinum certification included light-emitting diode(LED) lighting, which improved light quality while
reducing energy consumption by up to 90 percent; andan internal communications program designed to raiseawareness of the importance of energy conservation,
which won an award in 2016 from the CanadianIndustry Program for Energy Conservation.
3M Canada is also the first company in Canada to attainenterprise-wide ISO 50001 certification.

But then leading is nothing new for Brockville.
Brockville became the first Canadian facility to reach
the Superior Energy Performance® (SEP™) at the#improvinglives | 31

Sustainability
as viewed fromthe summits

In recent years, 3M has been creating opportunities
for customers and industry leaders to meet and share
their insights and opinions on the many issues affecting
Sustainability.
2017 was no exception.
In October, the company hosted two Sustainability
events: the 3M Canada Sustainability Summit, held inKing City, Ontario, and the 3M Sustainability in HealthCare Summit, held at the company’s Innovation Center in
St. Paul.

32 | 3M 2018 Sustainability Report

3M Canada Sustainability Summit

3M Sustainability in Health Care Summit

Nearly 100 thought leaders from academia, industry,
and the federal government gathered at the 3M Canada
Sustainability Summit to examine Sustainability fromdifferent perspectives.

For the third year in a row, 3M’s Health Care BusinessGroup held its health care summit at the Innovation
Center in St. Paul, Minnesota. This summit brought
together thought leaders on Sustainability in health care
to share best practices and help attendees identify new
ways to secure economic, social, and environmental
benefits from Sustainability programs.

“For 3M, Sustainability is a core value that influences
everything we do, but we know that we don’t have all
the answers to protecting our planet,” said Mojdeh Poul,
President of 3M Canada. “That’s why we work closelywith our suppliers, our customers, and our communities– through events like this – to share ideas about how towork together to address the Sustainability challenges
we all face.”
The event featured: keynote presentations by two
distinguished professors on the megatrends affecting
Sustainability practices, and the role of corporations
in building a sustainable economy, case studies fromindustry leaders, and a panel discussion, featuring
Canadian federal government officials, on the topic ofwhat is being done to accelerate the country’s transition
to a greener and more innovative economy.

Keynote speaker for the one-day event was Charlotte
Ersbøll, Senior Advisor with United Nations Global
Compact, the world’s largest voluntary sustainablebusiness initiative, with stakeholders in 165 countries andlocal networks in 73 countries. Ersbøll stated, “Finding
the solutions that can really disrupt the way we areconducting our business, so that the business becomes
the driver of positive change. The companies that are
determined to be part of solution will be the winners in
the future.” Other speakers covered a range of topics,
including climate change and the impact to health care,health system operations, life cycle assessment research,and community recycling.
Attendees were exposed to the breadth of 3M throughshared discussion around several 3M science-based
solutions during the innovation center tour, as wellas through interactive displays with packaging,environmental, health, safety, and business colleagues.

#improvinglives | 33

Consumer businessgroup pilots Supplier
Responsibility Code newassessment process

3M isn’t just committed to environmental and social
governance in our own business. We’re also committed
to working with suppliers that share the same ideals.
To that end, the company issued a revised Supplier
Responsibility Code (SRC) in 2016. The SRC is basedon our corporate values for sustainable and responsible
operations and aligns with the 10 Principles of the United
Nations Global Compact, of which 3M is a signatory.
The SRC is also materially consistent with the Electronics
Industry Citizenship Coalition (EICC) Code of Conduct,
now known as the Responsible Business Alliance (RBA).
To assure supplier alignment with the SRC, we actively
verify their performance against our expectations on arisk-prioritized basis – using a Due Diligence Management
System that is modeled after the Organization for
Economic Co-operation and Development (OECD)
Guidelines for Multinational Enterprises.
But this isn’t the end of the story. In 2017, 3M developed
a new supplier review process that puts more emphasis
on how suppliers are addressing social and environmental
challenges. The new process was also positioned asa more collaborative assessment rather than an audit,
aiming to build the capacity of its suppliers.
China was selected as one of the regions for testing thenew process, and 3M’s Consumer Business Group (CBG)
volunteered to participate in the assessments to provide
feedback before it was implemented globally.
CBG engaged two key 3M suppliers for the pilot andcompleted assessments in June 2017, following thesesteps:
Self-Assessments
The suppliers were sent self-assessments, which they
completed and returned to 3M prior to their on-site
assessments. The responses were evaluated by 3M,
and specific areas were highlighted for in-depth review
during the on-site assessment.
On-Site Assessments
The on-site assessments included a tour of the
manufacturing location, employee dormitory, andcafeteria. A 3M cross-functional assessment teamconducted several employee interviews as well asa review of processes and records with the suppliermanagement team. During the review, the 3M teamchecked to see that certain processes had been

34 | 3M 2018 Sustainability Report

implemented and documented, including safety
training and safety records, greenhouse gas emissions,and required environmental permits and reporting.
Records evaluated included employee time cards versus
employee payroll, verification of employee age, andmaximum allowed workweek (including overtime).
Upon completion of the on-site review, the 3M team met
independently to discuss and categorize the findings.
The lead assessor provided a verbal review of thosefindings to the supplier’s management team.
Corrective Action Prevention Action Plan Resolution
3M’s lead assessor provided the Corrective Action
Preventive Action Plan (CAPA) to the suppliers, whothen worked with 3M to document and assure adequate
resolutions of the findings.
Key elements of improvement•

The scope of assessments has been expanded withthe addition of questions related to labor/humanrights and EHS, including two new segments
covering ethics and management systems•

The updated SRC pilot process aligns with 3Mvalues, regulations, Key Accounts, and industry
standards•

There is cross-functional group participation in theassessment•

The upfront self-assessment, which is completed
before the on-site assessment, allows the team tofocus on areas of concern

Above all, the SRC pilot process confirms alignmentand conformance to 3M’s requirements, reduces therisk of disrupting business with suppliers, and assurescontinuity of 3M’s business with customers. Further,it helps us deliver on 3M brand equity and quality,
and strengthens our supplier relationships throughcollaboration and education.
Similar pilot assessments were conducted in othercountries to validate the new process and tools.
Beginning in 2018, the SRC assessment process will berolled out globally using an approach that prioritizes
higher risk suppliers by a number of factors including
geography, business category, and a measure of how
essential a supplier’s solutions are to 3M’s and its
customer’s business.

#improvinglives | 35

Turning trays into trees
What do you do with 18,000 plastic trays that are no longer usable in a
drug delivery systems production line?
If you’re the 3M manufacturing facility in Loughborough,England, you use science, creativity, collaboration, andan eye for Sustainability to turn those trays into trees.
But let’s start at the beginning. The Loughboroughfacility was installing a new filling line that made theold trays and their lids obsolete. The trays and lids were
initially put in storage, but this required a lot of space.
In fact, if you placed the entire 18,000 on top of eachother, the resulting stack would be almost twice theheight of the Burj Khalifa in Dubai, the world’s tallest
building. So, after consulting with the plastic injection
molding specialists who were making the new trays, 3M
manufacturing technology engineer Paul Eastwood hit
on a new idea.
Instead of sending the trays to a landfill, they would berecycled for use in manufacturing at the 3M facility in
Gorseinon, 200 miles down the road.
Paul consulted with MGS Technical Plastics, a company
that has been supplying protective side shields for a
production line at Gorseinon for several years. Neil
Garrity, manufacturing director at MGS, explains: “Thetrays were made from a plastic polymer known as ABS(acrylonitrile butadiene styrene). Our materials team isvery experienced in working with ABS and we arranged
for the trays to be ground down into small pellets so that
we could process them into shields.”

36 | 3M 2018 Sustainability Report

The $10,500 savings achieved by recycling the trays
was then donated to Earth Restoration Services, whichworks with schools across the United Kingdom to plant
trees and wild flower meadows.
Schools in communities close to the 3M sites received
native tree saplings, wild plants, and planting materials
in 2017, providing students with a way to improve andlearn from their environment.

“

It’s a great solution forus, for the environment,
and for the schools thatwill be benefitting fromthe plantings.

”

Paul Eastwood
3M Manufacturing Technology Engineer#improvinglives | 37

Customer first partnership in West Europe:

3M and BASF
According to the Food and Agriculture Organization of
the United Nations, around 90 percent of the 570 million
farms worldwide are considered to be family farms,
owned by individuals or families. Around 85 percentof the world’s farms are smaller than 2 hectares, andsmallholder farmers and their families working small plotsof land on almost every continent support the livelihoodsof one-third of the world’s population. Although the word
small may accurately describe their farm size it doesn’t
do justice to the contribution they make to the world’s
food supply. Fact is, small farmers produce nearly 70
percent of all food consumed globally.
BASF is a leading global supplier of chemicals used tohelp smallholder farmers protect and produce crops.
In their world, the responsible use of their products
and the health and safety of their customers are key
Sustainability imperatives.
According to Alessio Arcando, Key Accounts Director,
West Europe, 3M had been working with BASF at
different levels of their company, from procurement to
the C-suite, in the area of Sustainability. “Sustainability
activities are no longer just a ‘nice to have’”, Alessio says.
“They are a major business requirement for delivering
efficient growth. For BASF, Sustainability is core business
and, like many international companies, they chose topartner with us because 3M has a strong reputation forbeing ahead of the curve on Sustainability issues.”

The 3M Key Accounts team worked with BASF todevelop a strategy for meeting the needs of smallholder
farmers, particularly those in developing countries.
The solution: a professional farmer safety kit thatcombines BASF’s knowledge of crop production
techniques and know-how in the responsible use of plant
protection chemicals with 3M’s personal protection
equipment (PPE) solutions.
“We want to ensure that all farmers have the opportunity
to work in a safe environment. Smallholders have a
specific need for information, advice and equipment
when it comes to the responsible use of crop protection
products,” said Andy Beadle, Global Sustainability
and Product Stewardship Manager at BASF’s Crop
Protection division. “With 3M, we are pleased to havea partner at our side whose expertise and inventivenessin producing high-quality protection equipment are
unmatched. We partnered because we feel a strong
connection based on values and a long-standing
commitment to promote human health and safety.”
This kit, which has been distributed to 50,000
smallholder farmers in Africa and parts of Asia, isdesigned to help farmers employ safe practices tominimize their exposure to crop protection products.
Included in the kit are 3M disposable respirators, safety
glasses and gloves, as well as easy-to-understand,picture-based instruction materials that show
where, when, and how to use each PPE product,along with instructions on how to handle agriculturalchemicals safely.
“Customer first means driving customer-centricity.
Working in collaboration with BASF, we learned
exactly what the customers’ needs were, and together
we developed a solution that creates real value forsmallholders and their families.”

A partnership with students that
helped produce something essential
to remote Canadian communities:

Fresh food
In a Telefónica survey of 12,000 millennials in 27
countries, a strong majority of respondents said
they believe they can make a difference in theirlocal communities.
One group that can very likely make an immediate
difference is the Enactus team from St. Mary’s University
in Halifax, Canada, which was honored at the 2017
Enactus Canada National Exposition with the 3M Canada
Problem Solving Project Partnership Award.
3M is a proud supporter of Enactus, a learning platformthat cultivates entrepreneurial action among postsecondary students, with the goal of transforming lives
and creating a better, more sustainable world.

Following the competition, the St. Mary’s teamcompleted construction of a pilot system on the roof ofa university building in September and is working toward
construction of a 1,000-liter year-round aquaponics
system they can replicate throughout Nova Scotia andbeyond. The system would allow remote Indigenous
peoples to raise tilapia and produce vegetables at anaffordable price.
To learn more on the 2017 Enactus Canada Nation
Finalist, see here.

As part of its 2017 Canadian national competition, morethan 2,700 students created 280 community projects,
guided by academic advisors and business experts. In
a highly competitive field, the St. Mary’s team stoodout. Addressing food shortages in Canadian Indigenous
communities, they created an aquaponics system thatmakes it possible for isolated communities to grow theirown fruits, vegetables, and fish year around.
“Enactus students are innovative problem solvers and,thanks to partners like 3M, are ready to challenge thestatus quo for the benefit of social good,” said Nicole
Almond, president of Enactus Canada. Liisa Sheldrick,communications and 3Mgives leader, 3M Canada,
added, “Projects like this reflect 3M’s belief in applying
science to improve lives – with our customers, partners,
and communities.”

The award-winning St. Mary’s University Enactus Team.

38 | 3M 2018 Sustainability Report#improvinglives | 39

Conservation at 3M
includes hearing
The 3M approach to hearing protection goes wellbeyond earplugs and earmuffs. It is a full complementof tools and resources designed to help governments
and corporations move from a strategy that has
been primarily hearing loss documentation to one ofprevention or early intervention.
In other words, shifting from reactive to proactive.
At the heart of this approach is the notion ofcollaboration.
Consider, for example, the Council for Accreditationin Occupational Hearing Conservation (CAOHC) andthe University of Minnesota’s Midwest Center for
Occupational Health and Safety.
The CAOHC is an independent credentialing agency
that has developed certification courses covering theessential elements in hearing conservation programs.
The “occupational hearing conservationist” course
covers ear anatomy, physiology, and diseases of theear; hearing testing including audiometers, audiometrictechniques; noise measurement and control; hearing
protection devices; employee training, recordkeeping,and program evaluation. Those that successfullycomplete the course can perform quality audiograms,deliver education, and conduct hearing conservationinterventions. They are also able to screen audiograms
for further review by an audiologist or physician.

40 | 3M 2018 Sustainability Report

CAOHC also sponsors a certification course forphysicians and audiologists who oversee an audiometricmonitoring program.
3M’s internal policy is to use credentialed or licensed
personnel to administer hearing tests. We currently have
90-plus 3M employees with active certifications.
But many countries lack local alternatives for dedicatedcredentialing in hearing conservation skills. So, alongwith the Midwest Center for Occupational Healthand Safety, we developed a pilot program consistingof a CAOHC instructional course and a standardized
exam that fill the gap in these countries. Already, thisprogram has brought the CAOHC Occupational Hearing
Conservation course to China, resulting in certificationsfor 3M employees and health and safety professionals
in multinational companies from China, India, Singapore,
and Taiwan. A second course will be conducted in
March, 2018 to expand the program. We expect to do
the same in Latin America and other areas where staff
certification can help facilities prevent or reduce theseverity of noise-induced hearing loss.
The power of working together is coming through loudand clear.

#improvinglives | 41

Our
Every Life
Ambition
Introduction

44

Global Challenges

46

Materiality

48

2025 Goals

54

Our Every Life Ambition | Introduction

Introduction
We are committed to
improving our business,
our planet, and every life.
Sustaining our business, and our planet, means
protecting natural resources and empowering individuals
and communities throughout the world to encourage
progress. And above all else, it means uniting under acommon goal: improve every life.

We aim to help make that world a reality. Improving
every life is an exciting endeavor and our purpose.
This is the continued story of our purpose:#improvinglives.

Imagine a world where every life is improved—where
natural resources are readily available, people haveaccess to education and opportunity, and communities
are safe, healthy, connected, and thriving.

44 | 3M 2018 Sustainability Report#improvinglives | 45

Our Every Life Ambition | Global Challenges

Water

GlobalChallenges
At 3M, we look at Sustainability in terms of sharedglobal needs and the future of our business.
As a company rooted in scientific exploration,and the belief that every problem has a solution,
2, 14
we are applying our technological expertise tohelp solve some of the world’s biggest challenges on raw
materials, water, energy and climate, health and safety,
and education and development. We frame our goals
and actions around these shared global challenges.
G4SD

Overcoming global challenges requires recognitionof their interdependence, commitment across thecompany, and collaboration with partners, customers,
and communities. We are looking at ways to build
purpose into leadership and talent development acrossthe company, to recognize business opportunities
that help the company grow while addressing societal
issues, and to expand and improve our partnerships withcustomers and suppliers by working together toward
solving their Sustainability challenges.

46 | 3M 2018 Sustainability Report

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 mustmove beyond low-cost, recyclable
materials to renewable products. Companies that
address this issue not only help the planet, but they also
gain a competitive advantage in the marketplace.
Improving raw material usage through product designand operational considerations provides benefits
throughout the supply chain in material use, energy, andtransportation efficiency.
We will continue to innovate into the future, developing
renewable alternatives for impacted resources,
revolutionizing recyclable materials, and becoming
more sustainable.

People consume it, farm with it, andmanufacture products with it. Reducing
water consumption and improving water
quality are important elements of water
stewardship. Aging infrastructure andincreased demand are at the forefront to assure sociallyequitable, environmentally sustainable, andeconomically beneficial use and treatment of water.

safety solutions. Creative innovation, technology,
education, and collaboration are all critical if we are to
tackle these human health and workplacesafety concerns.
For decades, 3M has had entire business divisions
focused on creating products and services for humanhealth, protection, security, and safety. We arecommitted to helping improve the health and safety ofpeople worldwide so we can all focus on what mattersmost to us.

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.

We also embrace this commitment for our own
operations, and to that end, will continue to take steps
to protect our most important asset – 3M employees.

We will continue to work to reduce our corporate water
footprint and offer products that enhance water quality,
thereby respecting this important resource.

Education and Development

Climate and Energy
Access to a dependable energy supply
directly affects all businesses andcommunities. From air emissions to fossil
fuels, 3M takes a proactive andcollaborative approach to addressing
energy demand and climate change – in our operations
and for our customers.
Energy usage and climate concerns require systematicchange, and we’re here to help drive that forward.
Partnering with our customers will help us understandtheir needs and address those needs. The issues aroundeffective use of energy resources and climate change
are complex and interconnected.

At 3M, we believe science is just science
until you use it to improve the world with the
products and services we offer. Our science
not only impacts our customers, but also
makes a difference in the way we work.
As a technology company, 3M recognizes theimportance of well-trained science, technology,
engineering and math (STEM) graduates as well as
the critical need for a skilled workforce in advanced
manufacturing and vocational skills – we need brightminds to step into specialized roles and help ourcompany and our customers solve future challenges.
We will continue to support empowerment andenrichment to enable people everywhere theopportunity to live life to their fullest potential.

We will continue to seek solutions that promoteenergy conservation, clean energy infrastructure, andreductions in greenhouse gas emissions.

Health and Safety
Global health and safety issues areprevalent in workplaces around the world.
Governments, corporations, andconsumers are driving global demand forsafety, protection, healthcare, and food

#improvinglives | 47

Our Every Life Ambition | Materiality

Materiality
Our Commitment
At 3M, we look at Sustainability in terms ofshared global needs and the future of our
20-21, 48
business. As the population grows, particularly inemerging economies, challenges like energy availability,
raw material scarcity, human health and safety, education,and employment must be addressed to assure people
across the globe can lead healthy, fulfilling lives. For
additional information, see Global Challenges.
G4SD

Our materiality assessment is a vital component of ourSustainability strategy and reporting, whether the issues
are a result of our own activities or our business
relationships and is based on a robust, stakeholder-driven
approach. By understanding the critical 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.

48 | 3M 2018 Sustainability Report

Data provided in our Sustainability Report includes
information on issues that were found through themateriality assessment to have the highest potential toimpact our reputation and that are of great importanceto internal and external stakeholders. Because we are adiversified company, several other environmentalrelated topics and performance indicators relevant tovarious sectors of the company are also included in thereport. 3M’s Senior Vice President and Chief Technology
Officer reviews and approves our Sustainability Report.
Our 2025 Sustainability Goals were developed in 2014
based upon that year’s materiality assessment.

#improvinglives | 49

Our Every Life Ambition | Materiality

Our Actions
Stakeholders increasingly expect companies todo things that benefit society in more direct
2, 18-19, 27
ways and are not solely focused on benefits tothe company. That is why we made such an active effort
to involve stakeholders when we developed our 2025
goals. These goals go well beyond advancing ourenvironmental stewardship efforts. They are framedaround global challenges. This is apparent when one
considers how well our goals align with the United
Nations 2030 Agenda for Sustainability Development
released in 2015. This Agenda, including 17 Sustainable
Development Goals (SDGs), is designed to build upon
the historic work of the Millennium Development Goals,
and stimulate important action in three dimensions ofsustainable development: economic, social,and environmental.
G4

SD

We set our goals with the perspective that we have to be
successful as a company while also supporting thecommunities where we operate. It’s a two-pronged
approach that is both practical and thoughtful – andfilled with the integrity 3M is known for.
Our view of Sustainability is about finding thoseintersections where our goals move us forward toward
growth while supporting the company Vision toadvance, enhance, and improve.
Sustainability at 3M also includes collaborating to findbetter solutions for customers. The way we see it, global
challenges must be addressed together to assure we canall live healthy, fulfilling lives. That’s why we arecommitted to partnering with customers to identify andcollaborate on solutions to help them address their goals.

Materiality—past, present
and future
In 2014 and 2016, 3M commissioned GlobeScan, an
independent research consultancy, to assist us in better
understanding our stakeholders’ perspectives of keysocial and environmental issues, as well as assessing
3M’s corporate reputation and leadership opportunities
in the area of Sustainability.

3M and the readers of this report can understand thedegree of importance our stakeholders place on eachissue, the ability of 3M to make a positive difference
on the issue, and the level of impact an issue may haveon our reputation.
Materiality with respect to Sustainability reporting,as defined by the Global Reporting Initiative (GRI)
guidelines, includes topics and indicators thatreflect the organization’s significant economic,
environmental, and social impacts or would
substantively influence the assessments and decisionsof stakeholders.
The Sustainability materiality assessment conductedby GlobeScan determined the material aspects
for a wide range of 3M stakeholders outside of
3M, encompassing geography, stakeholder type,and function.
All material aspects defined within this report
are deemed material for all entities within the 3M
organization. The prioritization for the different
aspects may vary within 3M operations andgeographies, but they are still material.

3M Materiality Aspect Categories:

3M Materiality Tiers
Tiers
1
Tier 1 issues are highest priority
to address. Of these, 3M should
actively manage issues that havethe highest degree of 3M control
according to stakeholders.

2014

2016

Energy use

Energy use

Community safety and healthCommunity safety and health

Reducing waste

Water quality

Reducing toxic substances

Working conditions

Water shortages

Ethical business

Water quality

Scarcity of raw materials

Working conditions

Human rights

Ethical businessClimate change
Air quality
Transparency

2Tier 2 issues are areas in which
3M is expected to act, but thatare perceived as less urgent.

Raw Materials

Availability of products and services
with Sustainability attributes

Availability of products and services
with Sustainability attributes

Air quality

Treatment of workers

Climate change

Reducing toxic substances

Human rights

Water shortages

Treatment of workers

Reducing waste from operations

Transparency

Food safety*

Scarcity of raw materials
Human health

Water

3
Climate and Energy
Health and Safety

Tier 3 issues are perceived as least
urgent for 3M to address, but are
still material and often still driversof our overall reputation.

Engagement with citizens onsustainable behavior

Engagement with citizens onsustainable behavior

Employment

Employment

Advocating laws supporting
Sustainability

Advocating laws supporting
Sustainability

Supporting community building

Supporting community building
Human health

Education and Development

Workplace diversity*
Improving access to education*

Governance and Ethics

Responding to natural disasters**New attributes added in 2016

One result of this work is our evidence-based
Sustainability materiality matrix. From this matrix,

50 | 3M 2018 Sustainability Report#improvinglives | 51

Our Every Life Ambition | Materiality

Materiality assessment results from 2014 and 2016 show
similar issue tiers, but some shifts in importance forstakeholders. For example:

thus are considered an area to leverage in terms ofmanagement of human rights.
In this context, community safety and health has
become the greatest potential influencer of 3M’s
reputation, followed by a related issue: supporting
community building. In other words, there is great
opportunity to make an impact in the areas where 3M
products are made and people live.

Transparency moved from Tier 2 to Tier 1 priority,
suggesting that transparency is increasingly importantin a global, interconnected world. Scarcity of raw
materials, air quality, and climate change have also
moved from Tier 2 to Tier 1 priority, joining existing
environmental issues such as energy use and water
quality, and further supporting the notion that theseissues would benefit from holistic management. Humanrights has also moved from Tier 2 to Tier 1 priority.
This issue is also linked with working conditions which
are perceived to be within 3M’s realm of control, andIt should be noted that none of the issues added to the
GlobeScan study in 2016 – food safety, workplace
diversity, improving access to education, and responding
to natural disasters— were found to be a Tier 1 priority.

3M Sustainability Materiality Matrix 2014
View of Customers, External and Internal Stakeholders

Water Quality

Employment
Engagementwith citizens onsustainablebehavior

Every two to three years, we will continue tocomplete a comprehensive third-party materiality
assessment continuing our commitment as a purposedriven business. In addition, we will be looking at
implementation of the GRI Standards and ways tomeasure and evaluate broader societal impacts.

More specifically, we will focus on developing
products that enable safer and healthier workplaces
for customers, and assuring safe and healthy working
conditions throughout our supply chain. We will do ourpart to assure that 3M business partners follow ethicalbusiness practices and that a strong business conductand compliance system is in place at 3M. We will look

Water
shortages

Perceived ability of 3M tomake a positive difference

Low

Community
Safety and HealthHigh

Supporting
community
building

Community
safety andhealthEnergy use

Availability
Reducing wasteof products
and services with
Reducing toxic
sustainability attributes
substances

Supporting
community
building

3M will continue to work hard on issues that are mostmaterial to the company and perceived to be most
within our control: air quality, working conditions, ethicalbusiness, water quality, and transparency.

Scarcity of
raw materials

HumanrightsTransparency

Treatmentof workers
Human healthWorking
conditions

Ethicalbusiness

Impact on 3M Reputation

Impact on 3M Reputation

Climate change

to develop products that enable customers to improvewater quality, and modify operations, as necessary, toreduce water discharges. Throughout, we will work to
be transparent in communicating about 3M products
and business practices.

3M Sustainability Materiality Matrix 2016
View of Customers, External and Internal Stakeholders

2014

Air quality

Looking forward…

Scarcityof rawmaterials

Improving
access to
education

HumanrightsImportance to Stakeholders

52 | 3M 2018 Sustainability Report

Perceived ability of 3M tomake a positive difference

Low

High

Working
conditions

Water quality

Ethicalbusiness

Air quality

Responding
to natural
disasters

Food safety

Workplacediversity

Availabilityof products andserviceswithsustainability
attributes

Engagement with citizens
on sustainable behavior

Treatmentof Workers

Employment

Human health

Advocatinglaws supporting
sustainability

2016

Transparency
Climate change
Energy use
Reducing
toxic
substances

Water
Reducing Waste Shortages
from operations

Advocatinglaws supporting
sustainability

Importance to Stakeholders#improvinglives | 53

Our Every Life Ambition | 2025 Goals

3M 2025 Sustainability Goals
Baseline Year 2015

Goals

Raw Materials
Invest to develop more sustainable materials
and products to help our customers reach theirenvironmental goals
Reduce manufacturing waste by an additional 10%,indexed to sales

We have been setting global environmental goals at
3M 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 inenvironmental stewardship.

Raw Materials

In 2017, we entered the second year of an ambitious
10-year goal cycle. The 2025 Sustainability Goals weare now pursuing reflect a heightened commitment
to going beyond compliance and thinking holistically
about how our operations and products affect theworld and every life in it. We see the opportunity, in thenext decade, to create systemic change that addresses
global Sustainability challenges involving raw materials,
water, climate and energy, health and safety, as well as
education and development. For additional informationon the development of our 2025 Sustainability Goals,
see Our Materiality Assessment.

Water

Our customers, and the communities in which we
operate, deserve it. Our people are motivated by it.
Our future will be all the better for it.

Respect our planet’s resources and reimagine waste
as a nutrient to ensure we have abundance for
future generations.

Promote clean water for everyone, everywhere so thatevery person, business, and community has the water
they need to thrive.

Climate & Energy
Transform the way the world uses energy because it
impacts the climate, and the climate impacts everyone.

Health & Safety

Drive supply chain Sustainability through targeted
raw material traceability and supplier performanceassurance

Water
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

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 our2002 baseline, while growing our business
Help our customers reduce their GHGs by 250
million tons of CO2 equivalent emissions throughuse of 3M products

Health & Safety
Provide training to 5 million people globally on
worker and patient safety

Education & Development

Improve the health and safety of people worldwide so
we can all focus on what matters most to us.

Invest cash and products for education, community,and environmental programs

Education & Developement

100% participation in employee development
programs to advance individual and organizational
capabilities

Support empowerment and enrichment to provide
people everywhere the opportunity to live life toits fullest.

54 | 3M 2018 Sustainability Report

Achieve “zero landfill” status at more than 30% of
manufacturing sites

Climate & Energy

Double the pipeline of diverse talent in management
to build a diverse workforce#improvinglives | 55

Who
We AreIntroduction58

Our Values, Vision, and Strategies

62

Communities

64

Engaging Our Stakeholders

72

Diversity and Inclusion76

Who We Are | Introduction

Our Awards
Our people bring our vision to life in extraordinary
ways. Here you can find information about some of
the recognition programs honoring the outstanding
contributions of 3Mers in 2017.

Award. The award, the first of its kind in Latin America,
was created to promote ethics and encouragecompanies to take voluntary steps to prevent corruption,
creating a more ethical, transparent, and honest
business environment. 3M Brazil was recognized for top
management’s commitment to ethics, their policies andprocedures, and their risk monitoring and analysis.

Forbes’ list of “The World’s Most
Reputable Companies” for 2017

Introduction
Who We Are
A sense of purpose is at the heart of how we approachevery business, every idea, every product, every life,and every community we touch. It is the foundationof all that follows. Reflecting our core purpose, 3M
employees are empowered and encouraged to pursue
purpose-driven innovation.

Working in a highly collaborative environment, ourscientists use 46 core technology platforms, ranging
from adhesives and abrasives, to sensors and electronics
materials. They leverage these technologies to invent
unique, customer-inspired products that are marketed
through our five business groups.
Sustainability also permeates our culture. It is formally
included in our leadership behaviors and our annual
performance review process. What’s more, employees
are educated and encouraged to “think sustainably”— athome, at work, and everywhere in between. Improving
lives and making the world a better place is more than afrequent conversation, it’s become an expectation.

58 | 3M 2018 Sustainability Report

It’s even become a selling point for current and potential
3M employees. Research has shown that Sustainability,and “making a difference in the world”, is one of the
top areas of interest for 3M employees. This insight,
in turn, has led us to develop programs that benefit
employees, community partners, and 3M. For example,
through our skills-based service program, 3M Impact,
teams of employees have the opportunity to travel tocommunities around the world where they experiencechallenging and rewarding development opportunities
that enable them to grow as leaders and share their skills
to make a positive difference in the world. At the sametime, community partners gain expertise, knowledge,
and actionable plans from 3M teams. 3M benefits fromdeveloping globally-minded employees who are excited
to explore innovative solutions and address challenges in
new and growing markets.

As we reported in 2017, 3M is one of three 2017 winnersof the Catalyst Award, based on a rigorous assessment
conducted by Catalyst Inc., which cited the company’s“I’m In. Accelerating Women’s Leadership” initiative,
leadership development platforms, workplace flexibility,
mentoring programs, and external community efforts onbehalf of women. Our Chairman of the Board, President,
and Chief Executive Officer, Inge Thulin, accepted theaward in New York in March. The other two winners
were Rockwell Automation and BMO Financial Group.

3M has been named to Forbes’ list of “The World’s Most
Reputable Companies” for 2017, which highlights the
top 100 most reputable companies based on feedback
collected in quarter one from approximately 170,000
consumers around the world who are familiar with thecompanies. 3M ranked 22nd on this year’s list— climbing
eight spots from 30th place in 2016 (second place in the
medical and equipment industry).

Barron’s Ranking of “Most RespectedCompanies” for 2017
3M placed ninth in Barron’s latest ranking of America’s
most respected companies. To compile the list, Barron’ssurveyed money managers about their view of the most(and least) respected companies among the 100 largest
publicly held U.S. companies in the Standard & Poor’s
500 index.

The World’s Most Ethical Companies® program,managed by the Ethisphere® Institute, honors companies
that excel in “promoting ethical business standards andpractices internally, enabling managers and employees
to make good choices, and shaping future industry
standards by introducing tomorrow’s best practices
today.” According to the Institute, honorees have also
historically out performed other companies from afinancial perspective, supporting the notion that soundethical practices are appreciated in the competitivemarketplace. This year’s honorees spanned 23 countries
and 57 industries. It was the fifth consecutive year 3M
made the list.

3M Brazil: Pró Ética Certification Award
For the fourth year, 3M Brazil was recognized by theBrazilian Government with the Pró Ética Certification

Best Places to Work for LGBT Equality
Human Rights Campaign Foundation’s 2017 Corporate
Equality Index is the national benchmarking tool on
corporate policies and practices pertinent to lesbian,gay, bisexual, and transgender (LGBT) employees.
For the seventh straight year, 3M earned a perfectscore of 100 percent and, along with it, the distinctionof being named among the “Best Places to Work forLGBT Equality”.

Best DEI Places to WorkIn the third annual Disability Equality Index® (DEI®)
survey, 3M earned a top score of 100 percent, making
3M one of the “Best Places to Work for Disability
Inclusion”.

#improvinglives | 59

Who We Are | Awards

2020 Women on Boards Winner
3M was named a “V” company, with 18 percent of
women on the board, by this organization whose goal is
to increase the percentage of women on U.S. company
boards to 20 percent or greater by the year 2020. On
August 13, 2017 the percentage of women on the board
increased to 25 percent with the election of Amy E.
Hood to 3M’s Board.

Companies Where Top Millennials Most
Want to Work
National Society of High School Scholars (NSHSS) 10th
Annual Career Survey, conducted by Hanover Research
identified 3M as the eighth most dream company towork for among respondents in 2017.

For the 18th consecutive year, 3M was selected as amember of the Dow Jones Sustainability Index, a global
stock index that recognizes and tracks the performanceof leading Sustainability-driven companies worldwide.

Euronext and Vigeo Eiris included 3M, for 2017, in
the Euronext World 120 and Euronext U.S. 50 based
upon Environmental, Social, and Governance (ESG)
performance. Index components are reviewed andupdated twice a year, in June and in December.
Companies included in this index have achieved thehighest scores, as determined by review nearly 330
indicators, assessed by the agency.

FTSE Russell confirms that 3M, in 2017, has been
independently assessed according to the FTSE4Good
criteria, and has satisfied the requirements to become aconstituent of the FTSE4Good Index Series. Created by
the global index provider FTSE Russell, the FTSE4Good
Index Series is designed to measure the performanceof companies demonstrating strong ESG practices. The
FTSE4Good indices are used by a wide variety of market
participants to create and assess responsible investment
funds and other products.

MSCI ESG Ratings
EcoVadis awarded 3M a Gold Recognition Level forachievements in the top 1 percent of suppliers assessedin corporate social responsibility (CSR) in global Supply
Chains.

60 | 3M 2018 Sustainability Report

MSCI ESG Ratings provide institutional investors with arobust ESG integration solution. In 2017, awarded 3M an
AAA rating, the highest rating.

Other Featured
Awards50 Best Places to Work for New Dads

Great Places to Work®

DIVERSEability MAGAZINE

The following countries and areas were ranked by Great
Places to Work® and awarded as a best place to workin 2017:

3M was recognized in the Fall/Winter 2017 issue of
DIVERSEability magazine as being “Best of the Best Top
Disability-Friendly Companies”.

•

3M Bolivia•

3M Brazil•

3M Costa Rica•

3M El Salvador•

3M Greece (3M Hellas)•

3M Guatemala•

3M Honduras•

3M Japan•

3M Mexico•

3M Panama•

3M Panama Pacifico•

3M Poland•

3M Poland Global Service Center (GSC) Europe,
Middle East, and Africa (EMEA)•

3M Portugal•

3M Spain•

3M Turkey•

3M Latin American (LATAM) Region, Best
Multinational Workplaces•

3M Central American and Caribbean Region, Best
Workplace in Central America and Caribbean

Fatherly.com named 3M on its list of 50 Best Places toWork for New Dads coming in at 28th.

LEAD2017 Award Winners
HR.com named 3M on its list of Best Experienced/
Senior Leaders Program and Best Global/International
Leadership Program.

2017 Energy and Sustainability Award,
American Institute of Chemical
Engineers (AIChE)
3M’s Dual Brightness Enhancement Film team wasrecognized for a groundbreaking innovation with widereaching and demonstrated benefits for liquid crystal
display (LCD) manufacturers looking to reduce theenvironmental footprint of LCD devices.

Environmental Leader
Projects of the Year
3M Brookings, South Dakota was recognized fortheir efforts to minimize water consumption for theirlocation’s vacuum pump system. With the new system,
3M Brookings decreased annual water consumption for
the vacuum system by over 18 million gallons annually,
reducing the location’s water consumption in gallons per
square foot by 32 percent.

#improvinglives | 61

Who We Are | Our Values, Vision, and Strategies

Our Values

Our Vision

Our Strategies

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.

Every successful endeavor – whether it’s a social cause,a political movement, or a business – needs a vision.
Something to reach for. Something to unite people
around. 3M continues to be inspired and motivated byour corporate Vision that guides our work every day:To help achieve our corporate Vision, we have six
strategies that are engrained across our business.
The first four focus on growth, the fifth is arounddeveloping our people, and the last strategy is around
operational excellence.

Our guiding values include:•••

Act with uncompromising honesty and integrity ineverything we do
Satisfy our customers with innovative technology andsuperior quality, value, and service
Provide our investors an attractive return throughsustainable, global growth•

Respect our social and physical environment aroundthe world•

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

Earn the admiration of all those associated with
3M worldwide

3M Technology Advancing Every Company•

Expand relevance to our customers and our presencein the marketplace•

Gain profitable market share and accelerate market
penetration everywhere•

Invest in innovation, invigorate existing market
opportunities, and focus on emerging megatrends•

Intensify capabilities to achieve regional
self-sufficiency•

Build high performing and diverse global talent•

Drive consistent superior levels of operational
excellence

3M Products Enhancing Every Home
3M Innovation Improving Every Life

Our Vision helps define what we do, how we do it, andwhere we do it. At the same time, it establishes a stretch
goal for all employees at 3M. And it captures what
differentiates us from competitors as an enterprise.
What we do and have done for 115 years is advancing,enhancing, and improving. How we have done it, andcontinue to do it, is through technologies, products,
and innovation. Where we do it is for every company, inevery home, and for every life all around the world.
In short, this Vision serves as a daily reminder to all of us
of what the 3M brand stands for.

62 | 3M 2018 Sustainability Report#improvinglives | 63

Who We Are | Communities

Communities
3M investments and volunteers
make a positive impact on our world.
Our Commitment
3M helps build sustainable communities
through strategic investments, business
7-8
expertise, and the thoughtful engagement of
3Mers worldwide, who volunteer and leverage theirskills and experience to make a difference.
G4

EC

The social investment arm of 3M, 3Mgives, is governedby the 3M Foundation Board of Directors and Corporate
Contributions Committee comprised of senior level
executives in the company. The 3M Foundation Boardof Directors guides the social investment strategy byidentifying focus areas, allocating budget, and giving
strategy advice for execution by 3Mgives staff. The
strategy includes partnering with leading community
organizations that have a proven track record fordelivering results.

64 | 3M 2018 Sustainability Report

A three-part giving strategy
Education: 3M empowers the next generation ofscientists and engineers through investments ininitiatives that increase student interest and achievementin science, technology, engineering, and mathematics(STEM), and business, to help build a diverse pipeline ofglobal talent.
Community: 3M enhances community vibrancy by
assuring access to basic needs, preparing youth forlife-long success, increasing access to quality anddiverse arts opportunities, and contributing to global
humanitarian relief efforts.
Environment: 3M invests in programs promoting
Sustainability and environmental stewardship in thecommunities where 3M employees live and work.

2025 Goal: Invest cash and products for education,community and environmental programs.

We continue to invest in increasing access andopportunity for people worldwide to succeed in STEM
and business fields, and to improving lives throughinvestments in environment and community programs.
Cash, in-kind investments, and employee engagement
remain core to our 3Mgives strategy. Since 1953,
we have invested $1.58 billion in cash and productcontributions in 3M communities.

Our Actions
Education
As a company that thrives on applying science to life,
we understand the importance of inspiring the next
generation of scientists, innovators, and inventors.
As part of our commitment to supporting STEM, 3M
embraces programs that encourage students to develop
a fascination and a love for science. We also partnerwith organizations that help young people understandhow science impacts and improves lives. Our goal is toincrease STEM and business opportunities, and advanceequitable outcomes for all students. In addition, ourinvestments are helping to build a diverse pipeline oftalent by increasing access to quality education forcommunities around the world.

#improvinglives | 65

Who We Are | Communities

Saint Paul Public Schools

Frontline Sales Initiative

WorldSkills™

In our corporate headquarters community, we are
increasing Saint Paul Public School (SPPS) students’
access to STEM programs. Through a 40-year
partnership with SPPS, thousands of 3Mers have served
as mentors, science fair judges, and career speakers– in addition to providing 17,000 students with schoolsupplies on the first day of school every year. Today,
more than 12,000 students in SPPS are involved in a
3M-sponsored STEM activity, such as FIRST LEGO
League and FIRST Robotics teams, summer STEM
Camp, and our signature program, 3M STEP (Science
Training Encouragement Program), for high school
juniors and seniors.

3M’s commitment goes beyond traditional philanthropy;
during the summer of 2017, a record 60-plus university
students from more than 20 universities across the U.S.
participated in the 3M Frontline sales and marketinginternship program. Their itinerary included a two-week
introduction to 3M, eight weeks in the field selling
products for one of 3M businesses, and a one-weekreview of their experience. At the end of the program,
Frontline students are often offered and accept jobs
with 3M.

3M is a Global Industry Partner of WorldSkills
International, a not-for-profit movement that brings
together industry, government, organizations, andinstitutions to promote the benefits of and needfor skilled trade professionals through grassrootscommunity projects, skill competitions, and knowledge
exchange. In 2017, 3M sponsored the WorldSkills
competition in Abu Dhabi with more than 1,300
competitors, 50 skills, and 75 member countries
represented, all working together to help prepare theworkforce and talent of today for the jobs of the future.

DonorsChoose.org
In addition to supporting students in St. Paul, Minnesota,
3M partners with DonorsChoose.org to broaden thecompany’s support of STEM projects in classrooms
across the country. Today, 3M’s U.S. locations invest
more than $500,000 annually in classroom projects
led by teachers. Since 2015, 3M has funded more than
2,800 STEM projects impacting 276,000 students
across the country.

3M Visiting Wizards
The 3M Visiting Wizards program, which started in St.
Paul, Minnesota many years ago, continues to spark
an interest in science among young people aroundthe world. 3Mers provide science demonstrations andhands-on experiments on a variety of topics, such as theproperties of light and color, cryogenics, microbiology,
thermodynamics, and electricity.
This kind of exposure at an early age helps students
understand how science impacts everyday life, andencourages young people to become interested
in STEM.
In 2017, more than 33,000 students attended a Visiting
Wizards demonstration. More than 800,000 haveparticipated in presentations since the program’s
inception in 1985.
See typical Visiting Wizards demonstrations formagnets, colors and lights, and the science of air at
3M Visiting Wizards.

66 | 3M 2018 Sustainability Report

Gitanjali Rao

Young Scientist Challenge
The Discovery Education 3M Young Scientist Challenge,for grades five through eight, was launched in 1999 by
Discovery Communications and has been co-sponsoredby 3M since 2008. Its mission: to cultivate the next
generation of American scientists at an age wheninterest in science often declines.
Through the years, the one-of-a-kind competition has
sparked the imaginations of students and enhanced
science exploration, innovation, and communication
across the U.S. Students are invited to create a one
to two minute video describing a new, innovative
solution that could solve an everyday problem. All
videos are judged by a panel of experts in science andcommunication including current and former teachers,scientists, and representatives from school districts
across the country. After the judging, 10 finalists havean opportunity to participate in a summer mentorshipprogram with 3M scientists, and travel to 3M
headquarters to compete in the final event.
Learn more on Gitanjali Rao, a sixth-grader from Lone
Tree, Colorado and 2017 Discovery Education 3M Young
Scientist Challenge winner: here.

Higher Education
3M is also helping to develop the next generation of
STEM and business leaders by providing scholarships,
fellowships, and internships, in addition to supporting
professors who are turning ideas into innovation. The
company recently grew its commitment to advancing
career pathways by increasing investments for advanced
manufacturing training and skills development throughpartnerships with relevant vocational schools and skilled
trades organizations.

Scholarships, Fellowships, and
Non-Tenured Faculty Grants
3M is helping students of diverse backgrounds
pursue careers in STEM by providing undergraduate
scholarships, undergraduate research scholarships, andfellowships to students at the University of Minnesota,
University of Illinois, Georgia Tech, and other institutionsof higher learning. In addition to providing student
support, for more than 25 years 3M technical leaders
have directed financial support to promising academic
leaders to support the advancement of research andteaching in relevant STEM and business fields. In 2017,
3M provided more than $500,000 in support to 54
non-tenured faculty members.

3M Manufacturing andAcademic Partnership
3M launched the Manufacturing and Academic
Partnerships (MAP) Program in 2017, to promoteadvanced manufacturing training and careers throughthoughtful partnerships in our largest manufacturingcommunities. 3M works with partner technical colleges
and surrounding high schools to provide exposure
to advanced manufacturing. The program provides
scholarships, educator training, and help with curriculum
development. In 2017, 3M invested over $800,000
toward this initiative and is planning to grow thiscollaboration in the coming years.

Learn more on WorldSkills: here.

Community
3M invests in a more vibrant world through partnershipsthat advance inclusiveness, diversity, and strength in ourcommunities. We support the arts, youth development,
and basic needs, and provide humanitarian aid in timesof need.

Humanitarian Aid
In 2017, 3M responded to an unprecedented level ofnatural disasters, including earthquakes in Mexicoand multiple devastating hurricanes and wildfires, by
establishing a global relief fund. As part of this fund, 3M
and 3M employees invested more than $4.5 million in
cash and products to support communities in crisis – inthe U.S., Mexico, Puerto Rico, and several other regionsof the world. This support provided immediate relief tothe people in those areas, and helped assure that thoseaffected by a natural disaster received the care theyneeded to reestablish self-sufficiency.

3M Volunteers and Global Volunteer Day
In September 2017, 3M marked its fourth annual Global
Volunteer Day in 3M communities around the world.
Here are three examples of what took place:

Learn more on 3M MAP: here.

#improvinglives | 67

Who We Are | Communities

3M Brazil

Global Pro Bono Engagement(as told by 3M volunteer leader Liliane Moura)“We had 50 3M volunteers serve as judges for the
final round of the VII University Student 3M InstituteAward. The goal was to identify and support projects
that promote social development in education, health,or environment. Every university student in Brazil
could participate. The award criteria was low cost,easy replication, and the benefits it can provide to acommunity. The winners of the first award createda bread soup bowl that is still produced in three
institutions, to serve soup to people who live in thestreets and have no home. The bread soup bowl canbe eaten and it is very nutritious. And after the soup is
consumed, the bowl doesn´t produce any garbage anddoesn´t need to be washed. The award for winning went
to the sponsoring university, which uses the money tohelp the idea become a real solution for our community.”

3M Philippines(as told by 3M volunteer leader Rika Sophia
Kamibayashi)“Employees of 3M Philippines and 3M Global Service
Center Philippines kicked off celebrations for Global
Volunteer Day in 2017 by supporting the Give2Achieve
campaign, which aims to raise funds to rehabilitateand educate street children in the Philippines. Ourcommunity partner, Virlanie Foundation, has been our
adopted community since 1997. In that time, VirlanieFoundation has given back smiles and dreams to over
17,000 street children by providing developmental
intervention for children and their families. Our
volunteering efforts in 2017 included shirt sales to help
raise funds, outreach activity, and both employee andfamily involvement. With Give2Achieve our employees
were highly engaged and motivated to achieve a
common goal – fight child poverty through education.”

3M Spain Global Volunteer Day, Winning Science Circuit TeamThe winning team received a science award and all of
the children received a snack and a scientific pack of
3M products, including masks.”

3Mgives Volunteer MatchThroughout the year, the 3Mgives Volunteer Matchencourages volunteerism by donating to schools andorganizations where 3Mers and alumni volunteer theirtime. Since 2000, in the U.S., 3Mgives has provided
more than $7.10 million on behalf of over 30,000
volunteers to 3,770 organizations in 50 states.

Collaborative Community Engagement
3M works with innovative nonprofit partners like
GlobalGiving.org to digitally crowdsource investment
decisions. For example, 3M empowered 3Mers to
direct corporate contributions to global nonprofitsaligned to 3M Sustainability priorities. In response to thedevastation of several disasters, 3M matched employee
contributions through key partners, like GlobalGiving.org
and American Red Cross, to inspire 3Mers to double
their impact in affected communities.

3M Spain

MENTOR: The National Mentoring
Partnership“On Global Volunteer Day, we welcomed 25 young
people from Aldeas Infantiles, an organization
dedicated to nurturing vulnerable children, to spend a
fun evening with us in our Innovation Center and learn
science applied to life. The children were divided into
teams to complete a science circuit, performing six
tests as they searched for the best ‘nanoscientific’.

Every young person needs supportive relationships
to guide them as they develop and grow into thriving,productive, and engaged adults. 3M partners with
MENTOR to make sure this kind of support is in place,by providing quality programming to local organizations,and to train mentoring leaders. In 2017, 3M presented
MENTOR with our Inaugural Global Volunteer Partner
Award, as an organization that aligns with 3M’s values involunteerism.

(as told by 3M volunteer leader Ana Brage)

68 | 3M 2018 Sustainability Report

3Mers provide skills-based, consulting services tosocial enterprises and nongovernmental organizations
around the world through 3M Impact and 3M
Catalyst Leadership Way programs, in partnershipwith PYXERA Global. The 3M Impact program,established in 2017, deployed employees from aroundthe world to Southeast Asia to address Sustainability
and community challenges in Hanoi and Ho Chi Minh
City, Vietnam, Kuala Lumpur, Malaysia, and Jakarta,
Indonesia. Through the 3M Catalyst Leadership Way
Program, 3M deployed senior executives to support
communities in Bangalore, India and Shanghai, China.
Learn more on the 3M Impact Program: here.

Just as 3M is committed to improving
lives through our products and science,our 3M workforce is dedicated to making
a difference in our communities. The 3M
Impact program was launched by 3Mgives
to empower our employees – including
leading scientists, engineers, and businessleaders – to collaborate with game-changing
NGOs, and social enterprises in addressing
the world’s greatest challenges.
Michael Stroik
Director, 3Mgives

communities. These programs address improving basic
standards of living in the community, making a lasting
impact on Earth’s ecosystems, improving science-based
education for youth, and contributing to the effortsof critical partners in the community, especially thosethat provide economic development to underserved
populations.
Learn more on some of these efforts in Canada andEngland, under our featured stories.

3M Austin, Texas – Tarmac TX
Tarmac TX is a nine-month accelerator program that
supports Austin-based social entrepreneurs who aredeveloping community-enhancing technology solutions,by connecting them with 12 3M employees who haveexpertise in marketing, business development, andinformation technology to help with critical strategic
issues. As a free accelerator, Tarmac TX provides
pathways to economic opportunity and promotes
inclusiveness and diversity in tech entrepreneurship.
Among their many solutions, Tarmac TX 2017 startups
are working to improve the quality of life in the Austin
community, protect the environment, and serve children
and students in schools, foster children, and the blindcommunity.

Environment
3M invests in initiatives that foster sustainablecommunities. This includes projects that13
protect threatened ecosystems, support local
economies, enhance livelihoods, and promote sciencebased environmental education.
G4

EN

Another way 3M recognizes the importance of good
corporate citizenship, and supporting the communities
in which we operate, is through 3M Legal Affairs.
By leveraging legal skills and experience, 3M Legal
Affairs helps bridge the gap and strengthen both thecommunity and the justice system. Learn more onthese efforts: here.

Local investments. Global impact.
To maximize positive social impact in the communities
in which we operate, 3M manufacturing facility
locations receive an annual budget to invest in theirown backyards. To help support their efforts, 3Mgives
recently introduced four programs that collectively
provide approximately $1.50 million of additional
funding to organizations that demonstrate the ability
to create a long-term, sustainable impact in their

Closed Loop Fund
Cities across the U.S. spend billions of dollars sending
recyclable materials to landfills. The Closed Loop
Fund (CLF) is a collaborative social impact fundthat gives cities access to capital needed to build
comprehensive recycling programs. At the same time,
it gives companies like 3M access to an important
supply of recycled materials for use in packaging.
3M’s $5 million commitment to the CLF has alreadyhelped fund 12 projects that have improved recycling
access and diversion for 4.1 million households, andprovided $17 million in economic benefit to participating
municipalities. This partnership is one of 3M’s innovative#improvinglives | 69

Who We Are | Communities

approaches to strategic social investing. It is thecompany’s first program-related investment that will be
paid back to 3M Foundation to recycle funds back into
the community in the future. 3M is also supporting CLF
with a scoping grant to explore international regions that
could receive the greatest impact from their approach toenvironmental stewardship.

Looking forward…
In 2018, 3Mgives will continue to strengthen our
culture of service by engaging our most impactful
asset – our people. We will continue to implement a
new volunteer technology platform to help employees

learn about more opportunities to support localorganizations through volunteerism. In addition, we
expect to expand our newest volunteer program, 3M
Impact, which deploys some of 3M’s most talented andengaged employees to global markets to work withsocial enterprises, nongovernmental organizations,and universities focused on solving the world’s largest
problems. And we will continue expanding our focus on
STEM education to develop specific programs relating
to advanced manufacturing skills positions. Our goal is toexpand the pipeline of manufacturing talent, particularly
among veterans and groups underrepresented in the
manufacturing industry.

#improvinglives means enabling
better patient outcomes, lifelongoral health, and a safer food supply.

G4

EC

7

2017 Giving by Focus Area
Cash

In-Kind

Total

Volunteer Hours

Community$17,700,000$24,800,000$42,500,000

190,000

Education$15,100,000$12,800,000$27,900,000

83,700

Environment$2,980,000$66,700$3,050,000

22,000Total$35,900,000$37,600,000$73,500,000

296,000

Our innovative solutions help customers, from hospitals and clinics,
to food and pharma companies, improve sustainability andpatient health.

Values presented in this table represent the most current values, in $USD, but are still subject to change.

2017 Global Giving by Region
Cash

In-Kind

Total

Volunteer Hours

Asia Pacific$1,810,000$2,240,000$4,060,000

6,740

Europe/Middle East/Africa$621,000$312,000$933,000

6,700

Latin America$2,990,000$979,000$3,970,000

3,230

Canada$1,500,000$680,000$2,180,000

2,050

United States$27,700,000$29,800,000$57,500,000

277,000

OUS, Region Not Defined$1,230,000$3,680,000$4,910,000–$35,900,000$37,600,000$73,500,000

296,000

Total

Values presented in this table represent the most current values, but are still subject to change.

70 | 3M 2018 Sustainability Report

Health Care
#improvinglives | 71

Who We Are | Engaging Our Stakeholders

Engaging Our
Stakeholders
See how our stakeholder-driven approach to
Sustainability materiality serves as a foundationfor our Sustainability strategy and reporting.

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 created arobust, stakeholder-driven approach to Sustainability
materiality that serves as a foundation for our
Sustainability strategy and reporting. Throughunderstanding critical Sustainability issues from bothinternal and external perspectives, 3M can strengthen
its social license to operate and develop corporate
strategy, goals, targets, programs, initiatives, and astakeholder engagement strategy to advance
Sustainability globally.
G4

SD

72 | 3M 2018 Sustainability Report

As a science-based company, our stakeholders include
customers and consumers, investors, government
agencies, industry organizations, subject-matter
experts and academia, non-government organizations,other corporations, and more.
It is through collaboration and partnerships that
3M can accelerate Sustainability in our company
and in the world. We value our partnerships withnumerous stakeholders as a way to not only address
our Sustainability issues, but to help our partners
address their Sustainability challenges. 3M has
joined numerous organizations globally to advance
Sustainability through collaboration with theorganization 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,#improvinglives | 73

Who We Are | Engaging Our Stakeholders

and a mechanism to learn from the successes andfailures of our peers contributing to our commitment topurpose-driven business.

Who

We rely on a robust business conduct assessment
process to help assure the external organizations that wepartner with share our commitment to business integrity.

Why

Stakeholder Engagement
Strategy
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
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.
We engaged with many internal and external
stakeholders in setting our 2025 Sustainability Goals.
Our 2014 and 2016 materiality assessments bothdemonstrated that our 2025 goals remain aligned with
our stakeholder expectations – see the Materiality
section for more information. Our goals are alignedwith the key global challenges, as well as the United
Nations 2030 Sustainable Development Goals. As such,they present unique opportunities for partnerships andcollaboration, which 3M is actively seeking.

Nonprofit Organizations
and NGOs• Partnering to understand societal concerns• Providing support to advance and solve global issues

Who

Why

Government/
Regulators• Complying with laws, regulations, and policies• Supporting and engaging on development and

Who

Why

modification changes

Customers• Providing diverse innovative product solutions that help ourcustomers deliver on their promises• Offering a diversified portfolio of high quality products• Providing products with Sustainability attributes to address• Alliance to Save Energy

How• American Council for an Energy-Efficient Economy(ACEEE)and help solve global environmental challenges• United Nations Global Compact

How• Forum for the Future• U.S. Department of Energy (DOE)• U.S. EPA Energy Star Program• Friends of EU Emissions Trading Scheme (ETS)• Corporate Eco Forum• U.S. EPA Green Power Partnership

How• TFT (The Forest Trust)• Retail Industry Leaders Association• Sustainable Brands• World Business Council for Sustainable Development• The Nature Conservancy• Net Impact• PYXERA Global• The RECYCLING PARTNERSHIP• World Resources Institute (WRI)

Who

Local Communities• Supporting and engaging in citizenship activities acrossSuppliers, Contractors,
Industry Associations• Providing economic and social value to communities while• Partnering with suppliers and contractors that meet or• WorldSkills™

Why
Who

our value chain

minimizing environmental impact• Supporting safe and healthy communities

Investors

Who

Why

• Collaborating to identify, resource and amplify

Sustainability initiatives• Innovative cash investments in evidence-based nonprofit• Delivering profitable returns on investment

Why• Disclosing timely, concise, and relevant informationHow(related to Economic, Environmental, and Social Issues)• Responding to inquiries• Upholding corporate values

organizations• Skills-based service opportunities leveraging the rich
set of skills in the 3M workforce• Transformative product donations that improve
lives globally• More information can be found in the Collaborating with
Our Communities section of this report• Dow Jones Sustainability Index

How

value chain• Air & Waste Management Association

How• Alliance to Save Energy• American Chamber of Commerce (AmCham)• American Chemistry Council (ACC)• The Conference Board• MSCI• The Conflict Free Sourcing Initiative (CFSI)

Who

Employees• Respecting human rights for workers across our• American Industrial Hygiene Association• CDP• National Investor Relations InstituteWho

exceed expectations• Supporting collective efforts to deliver business results

Academia andScientific Organizations• European Chemistry Industry Council (CEFIC)• Green Chemistry & Commerce Council (GC3)• The Institute of National Pact (InPACTO)• Minnesota Chamber of Commerce• National Association of EHS Managers (NAEM)• National Association of Manufacturers (NAM)

Why• Engaging on technical scientific research to develop

innovative solutions for society• National Climate Coalition (NCC)• Pressure Sensitive Tape Council• Respecting human rights and diversity

Why• 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 acompany for which employees are proud to work

• Harvard Medical School, The Center for Health and theHow

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 and Chemistry• Committee to Encourage Corporate Philanthropy

How• The League of American Bicyclists• The Science Museum of Minnesota• U.S. Business Leadership Network

74 | 3M 2018 Sustainability Report#improvinglives | 75

Who We Are | Diversity and Inclusion

Diversity andInclusion
At 3M, diversity and inclusion are
essential and inseparable to our success.
Our Commitment
At 3M, we foster an inclusive environment where
employees feel safe, engaged, and free to create andinnovate. Our diversity and inclusion strategies are
inextricably linked to our corporate strategies.
The way we look at it, a diverse, global workforce –people with different experience, ethnicity, age, gender,
faith, sexual orientation, personalities, styles, and waysof thinking – helps us relate more closely to the needsof all 3M customers, suppliers, and channel partners
around the world.
Just as important, it’s the right thing to do. Diversity andinclusion are about creating intellectual and emotional
oxygen for all people to flourish and feel comfortable tocollaborate, agree, disagree, and respectfully exchange,learn, and create.

76 | 3M 2018 Sustainability ReportThat’s why the 3M Code of Conduct includes
this guideline:

Be Respectful: We strive to have a work environmentthat reflects and values the best in all of us, where wetreat each other respectfully and professionally, andwhere individual differences are valued.

3M’s Respectful Workplace Principle states that“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 morethan compliance with the law. It is a work environmentthat is free of inappropriate or unprofessional behavior
and consistent with 3M’s ethics and values – a place

where all employees can do their best, and are free toreport workplace concerns without fear of retaliation
or reprisal”.
To foster this kind of workplace, we follow our Equal
Employment Opportunity (EEO) policies, which prohibit all
forms of discrimination or harassment against applicants,
employees, vendors, contractors, or customers on thebasis of race, color, creed, religion, sex, national origin,age, disability, veteran’s status, pregnancy, genetic
information, sexual orientation, marital status, citizenshipstatus, 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 assure equal opportunities for qualified minorities,
women, covered veterans, and individuals with disabilities,
and also to provide reasonable accommodation toindividuals with disabilities.

2025 Goal: Double the pipeline of diverse talent inmanagement to build a diverse workforce.

Doubling our diverse talent in management/leadership
positions will ultimately help build a diverse pipeline for
executive leadership as well. That said, we recognizethat definitions of diversity vary between countries andcultures. In the U.S. and in many other countries, we
provide our people with the opportunity to opt-in andconfidentially provide information such as disability
status, veteran status, sexual orientation, race/ethnicity,and gender.
The 3M definition of diversity includes gender, race/
ethnicity/nationality, people with disabilities, U.S.
military veterans, and people who identify as lesbian,gay, bisexual, transgender, questioning, and intersex(LGBTQI). To measure progress against our 2025
goal, we use a Diversity Index which represents thetotal number of diverse future leaders within thecompany globally.
Note: In the U.S. and in many other countries, we
provide our people with the opportunity to voluntarily
self-identify and confidentially provide information suchas disability status, veteran status, sexual orientation,and race/ethnicity.

Increasing diversity in every region in which we
operate is a core part of our Sustainability strategy.

#improvinglives | 77

Who We Are | Diversity and Inclusion

Our Actions
Every day, we work to assure that the 3M workforce isrepresentative of the people with whom we do business.
This entails:• Strengthening 3M’s reputation as a great place fordiverse people to work
• Seeking and attracting diverse and qualified
candidates globally

Reflect

Different minds
inspire.

Catalyst Award
Connect

At 3M, great mids don’t think alike.
Different minds inspire.
Every one of us has the power tomake a difference and strengthen
our culture of inclusion.

Wonder• Building our global pipeline of diverse candidates
Beyond our day-to-day efforts to support diversity in2017, we also actively promoted initiatives to engage ourpeople, attract the best talent, and make everyone feelsafe and included.

Wonder: Imagine what we can accomplish together.
The company is developing global communication,
events, and training, inspiring employees to activate the“Different Minds” campaign.

Different Minds Inspire Campaign
At 3M, we know that inclusion is the key to unlocking
the power of our diversity. An inclusive culture is one
that supports and appreciates differences, and provides
fair and equal opportunities for everyone. It is a culture
where people realize they are respected for their whole
and unique selves, and that they belong. Inclusion leads
to engagement, which in turn fosters the collaboration,
creativity, and innovation that drive long-term growth for3M as well as for our people and our customers.
In the inaugural 2017 Inclusion Index (a measure of
how included employees feel in the workplace, basedon responses to questions in the 3M Standard Opinion
Survey), a large majority of responding employees felt
included in the workplace. Moving forward, we will work
to engage all employees as we enhance our culture ofinclusion.
At the 3M Global Inclusion Day event on October 30,
2017, the Diversity and Inclusion team launched a new
campaign: “Different minds inspire”. This campaign
is centered on three actions employees can take tostrengthen our inclusive environment:
Reflect: Identify your own unique strengths.
Connect: Understand and appreciate the uniqueperspectives of others.

78 | 3M 2018 Sustainability Report

Watch an interview with Mr. Thulin and Deborah Gillis,
President and Chief Executive Officer of Catalyst: here.

Meaningful innovation and relevant brandexperiences are no longer driven by great
individuals but by great teams that embrace
diversity in thought and collaboration.
Eric Quint
3M Vice President and Chief Design Officer

Catalyst CEO Champions For Change
Inge Thulin, our Chairman of the Board, President, andChief Executive Officer, became a founding memberof the Catalyst CEO Champions For Change initiative
focused on accelerating diversity, inclusion, and genderequality in the workplace. Mr. Thulin signed on to thisinitiative at the 2017 Catalyst Awards ceremony, where
3M was recognized for our proven approach to expand
opportunities for women and business.
As part of this commitment, Mr. Thulin, along with morethan 40 other Chief Executive Officers and industry
leaders, made a personal pledge to advance women’s
representation over the next five years, particularly at
the senior level and within the Board of Directors, andactively sponsor a diverse group of women. The initiativeis also intended to encourage more organizations tomake commitments around increasing gender equality inthe workplace.

For 30 years, the Catalyst Award has been a prestigious
honor presented to select companies that distinguishthemselves in accelerating progress for women in theworkplace. 3M was one of three 2017 winners of thisaward, based on a rigorous assessment conductedby Catalyst Inc., which cited the company’s “I’m in.
Accelerating Women’s Leadership” initiative, leadershipdevelopment platforms, workplace flexibility, mentoring
programs, and external community efforts on behalf ofwomen. Inge Thulin accepted the award in New Yorkin March.

Employee Resource Networks
3M Employee Resource Networks (ERNs) are grassroots
organizations designed to nurture leadership skills, andcollaboration across cultures, lifestyles, and genders,through networking. Open to all employees, theseorganizations help 3M recruit, engage, and retain diverse
talent and work with our businesses to provide relevant
customer insights that can expand our marketplace reach.

• Military and Veterans Support Network• Native American Network• New Employee Opportunity Network (NEON)• Women’s Leadership Forum
In 2017, two ERNs celebrated over 40 years ofcontinuous employee engagement: the Women’s
Leadership Forum and the African-American Network.
Also, the Native American Network, a circle ofpeople from American and First Nations Indian tribes,
celebrated its 25th anniversary.

Diversity-Focused Recruiting Events
During 2017, we participated in several recruiting events
to connect with people and talk about employment
opportunities at 3M, including:• American Indian Science and Engineering Society• Grace Hopper Celebration• Reaching Out MBA• National Black MBA/Prospanica• National Organization for the Professional
Advancement of Black Chemists andChemical Engineers• 3M Pride (LGBTQ and allies)• National Society of Black Engineers• A3CTION (Asians and Asian-Americans Coming
Together for Innovation and Opportunity Network)• Society of Hispanic Professional Engineers• African American Network• Society of Women Engineers (National andRegional events)• disAbility Awareness Network• Latino Resource Network

The chairs and co-chairs of the ERNs lead development andcommunity-based events within their own networks – as well as
collaborate across networks to champion inclusion at 3M.

Invent a New Future Challenge
Each year since 2014, 3M has sponsored the Invent a
New Future Challenge, a business case competition thatcelebrates the extraordinary thinking of college students
around the world. Third- or fourth-year undergraduate
students and those pursuing an advanced degree inmarketing, sales, supply chain/logistics, engineering,science, and/or technical studies are encouraged toparticipate. In 2017, students in 13 countries competedin the local round. Fourteen finalists were then flown to
the U.S. for the global case competition finals at 3M’s
world headquarters in St. Paul, Minnesota. Membersof the final winning team each received a six-month
mentorship with a 3M senior leader in their respective#improvinglives | 79

Who We Are | Diversity and Inclusion

countries. Another positive outcome of the competition:
more than 25 students were hired for full-time 3M
positions in their local countries.

On the Hirepurpose career portal, candidates canresearch companies, receive job search advice, and makesure their applications reach veteran advocates at each
employer partner. A team of Hirepurpose career coaches
also provides personalized guidance and support online,
over the phone, and at bases across the U.S.

Minnesota National Guard Women’s
Leadership Forum

Left to right:
Vamshi Voruganti, USA, Pennsylvania State University,
Industrial Engineering
Eunseo Jean Kim, South Korea, Hanyang University,
Industrial Engineering
Bruno Ferreira de Oliveira, Brazil, Universidade Federal da Bahia,
Chemical Engineering
Annu Mann, India, Xavier School of Management, MBA
Abdulkhaleq Ahmed Al-Mansaf, King Abdullah University of
Science and Technology (Kaust), Chemical Science

On September 16, 2017, more than 700 membersof the Minnesota National Guard attended the third
annual Women’s Leadership Forum at 3M corporate
headquarters. Topics included emotional intelligence,leadership, high performing teams, and a championshipculture. Among the speakers: Maureen Bausch,
Minnesota Super Bowl LII Host Committee Chief
Executive Officer, as well a range of local business andgovernment leaders, and representatives from five ofMinnesota’s professional sports teams (Lynx, Twins,
Wild, Vikings, and Timberwolves).

Military Bowl
Over the past 10 years, the Military Bowl football gamehas served as a premier regional event benefiting
the United Service Organizations (USO) and othergroups that support members of the Armed Forces
and their families. In 2017, 3M announced a three-year
sponsorship agreement with the Military Bowl and, alongwith other corporate sponsors, helped raise $100,000
at the December 2017 Military Bowl game played in
Annapolis, Maryland. At the game, 3M also presented
the 3M Play to Win award to George Garcia III, the sonof two active-duty U.S. Air Force service members, whotook on important family responsibilities while both hisparents were deployed.

Best Places to Work for Disability
Inclusion
3M earned a top score of 100 percent on the 2017
Disability Equality Index®, making 3M one of the‘Best Places to Work for Disability Inclusion’. We have
improved our score every year over the three years theindex has been in place. Participating in the index helps
us identify ways we can further enhance our policies
and practices around disability inclusion. Reaching a top
score strengthens our reputation as a great place for all
people to work, and helps us attract more candidates
with different abilities, backgrounds, and experiences.
Representing people with disabilities is an importantdimension of our Sustainability goal to double thepipeline of diverse talent in management by 2025. And
it’s part of our commitment to be an inclusive culture andworkplace where people of all abilities can thrive.

Working With Those Who Have Served

On October 23, 2017, 3M held a disAbility Employment
Awareness Month Celebration in honor of being
named a Best Place to Work for Disability Inclusion.
The celebration included a presentation from Believet™
Canine Service Partners, which provides highly skilledassistance dogs, free of charge, to disabled veterans.

3M is a strong supporter of initiatives that provide
employment help to veterans of U.S. military service.

Best Places to Work for LGBTQ Equality
From left to right: Skip Driessen, Ingar Grev, Kevin White, andRory Yanchek

Hiring Our Heroes is a nationwide initiative that assists
veterans, transitioning service members, and military
spouses find meaningful employment opportunities. The
effort is backed by an advisory council comprised of 25
of America’s biggest employers, including 3M. Elementsof the campaign include:

For additional information, see: Military Bowl, a gamewith a larger purpose.

• Establishing best practices for employing veterans

Rally at the Wall Events• Providing mentors to help transitioning veteransand their spouses

At the Military Support Network Wall located at 3M
headquarters in St. Paul, Minnesota, the company
sponsored six Rally at the Wall events throughout 2017
to demonstrate support for the men and women who
have transitioned from the military to 3M. These events
focused on networking and recognition of veterans hired
at 3M.

• Enlisting a similar commitment from small andmedium-sized business
Hirepurpose provides career guidance and a recruiting
portal for transitioning military service members. Its
overall mission is supported by Hirepurpose’s employer
partners – Fortune 1000 companies that understand theimpact and value of hiring veterans, including 3M.

80 | 3M 2018 Sustainability Report

National Industries for the Blind (NIB)
3M has partnered with NIB, the nation’s largest resourcefor jobs and training for people who are blind, formore than 30 years. In 2017, the company sponsoredan individual for an eight-month NIB Fellowship for
Leadership Development, working with the webservices team of the 3M Business Transformation /Information Technology group. There he was involved
in several projects including digital planning, consumer
analysis, AB Testing, and providing daily feedback onelectronic formatting.

For the seventh year in a row, 3M scored 100 percent
on the Corporate Equality Index (CEI) for 2018, making
the company one of the ‘Best Places to Work for LGBTQ
Equality’. The CEI is administered by the Human Rights
Campaign and benchmarks corporate policies including
non-discrimination workplace protections, domestic
partner benefits, and transgender-inclusive health care.

Looking forward…
In 2018, we will continue our journey of steady progress
toward our goal of increasing the pipeline of diverse
talent in management. In addition, through the “Different
minds inspire” campaign, we will engage 3Mers inactivities and behaviors that strengthen inclusion andcreate space for respecting diverse perspectives. In
2019, we will focus on integrated collaboration, by
combining diverse capabilities and people on teams, toshare knowledge and discover breakthrough outcomes.

#improvinglives | 81

How
We Work

Introduction

84

Corporate Governance86Enterprise Risk

94

Corporate Code of Conduct

98

Human Rights

106

Compensation

114

Employee Programs

118

Health and Safety

130

Environmental Management

138

Raw Materials

144

Water

152

Climate and Energy

156

Suppliers

168

How We Work | Introduction

Introduction
How We Work
Sustainability is embedded firmly at the core of 3M
and in the strategic planning process we use for every
region, every market, and every business.
In each of our business groups and regions we havededicated Sustainability leaders who develop a relevant
and well-informed strategy specific to their market
demands and business goals.
Annually, like many companies, we go through astrategic planning process during which our divisions
and regions develop their business strategies for the next
few years. However, unlike others, we formally requirethat each plan address Sustainability factors relevant totheir market needs and business opportunities.

R&D at 3M is a little different:
we separate the R and the D.
First, the R. Scientists in our central laboratory are free
to focus on pure research, in search of unscripted,
84 | 3M 2018 Sustainability Report

unexpected opportunities for breakthroughs. Our
unique “15% Culture” gives them the freedom to follow
their instincts. At the same time, our Tech Forum is a
key enabler of collaboration. This self-directed, selforganized group unites 10,000-plus scientists andengineers who work together to solve problems acrossoceans and continents, regardless of which businessthey’re from.
For the D, 3M development teams within each of ourbusiness groups draw upon our core technologies tocreate products for targeted markets and geographies.
Moving forward, we will continue to expand beyond ourown operations and focus more on 3M Sustainability
goals and the needs of our customers and communities.
While we recognize the importance of what we do in
our own businesses, and will continue to innovate there,
we see that far greater impact can be realized when wepartner to understand and overcome the challenges weface together.

#improvinglives | 85How We Work | Corporate GovernanceCorporate
Governance
3M believes that good corporate governance practices
serve the long-term interests of stockholders,strengthen the Board and management, and further
enhance the public trust 3M has earned from morethan a century of operating with uncompromising
integrity and doing business the right way.

Our Commitment
3M’s Board of Directors has adopted Corporate
Governance Guidelines which provide a
34-41
framework for the effective governance of thecompany. The guidelines address matters such as therespective roles and responsibilities of the Board andmanagement, the Board’s leadership structure, theresponsibilities of the independent Lead Director,
director independence, the Board membership criteria,
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86 | 3M 2018 Sustainability Report

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, andthe Board of Directors Code of Conduct provide theframework for the governance of the company and areavailable on our website at www.3M.com, under
Investor Relations— Governance.
The Board’s current leadership structure ischaracterized by:•

a combined Chairman of the Board and Chief
Executive Officer;•

a strong, independent, and highly experienced
Lead Director with well-defined responsibilities that
support the Board’s oversight responsibilities;#improvinglives | 87How We Work | Corporate Governance•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
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.
On March 5, 2018, the Board appointed Michael F.
Roman CEO, effective July 1, 2018. He succeeds
Inge G. Thulin, who is appointed to a newly createdposition, executive chairman of the Board, also effective
July 1, 2018.

Board’s Role in the Company’s
Long-Term Strategy
Each year management presents to the Board, andthe Board discusses and approves, detailed long-term
strategic plans for the company, the international
business, and each of the company’s business groups.
Each presentation includes an overview of the businessgroup, the financial performance, an assessment of
the portfolio for growth opportunities using a SWOT
analysis (i.e., strengths, weaknesses, opportunities, andthreats); strategic priorities to drive the three key value
creation levers—Portfolio Management, Investing in
Innovation, and Business Transformation; plans to drive
the four corporate fundamental strengths—Technology,
Manufacturing, Global Capabilities, and Brand; and the
projected long-term financial performance.
Our company’s long-term strategy is outlined in the 3M
Playbook, which consists of five elements: our Vision,
Strategies, Code of Conduct, Leadership Behaviors, andKey Levers.

88 | 3M 2018 Sustainability Report

Our Vision captures our aspirations and guides our
corporate direction – 3M Technology Advancing Every
Company, 3M Products Enhancing Every Home, 3M
Innovation Improving Every Life. For 115 years, we haveadvanced, enhanced, and improved companies, homes,
and lives around the world. Our six strategies provide
the roadmap for achieving our goals. They guide us
to actively identify and align to external opportunities
including customers, markets, and macro trends while
continuously investing in our internal capabilities suchas technology, manufacturing, global reach, and the 3M
Brand. Our Leadership Behaviors (Play to win, Innovate,
Foster collaboration and teamwork, Prioritize andexecute, Develop others and self, Act with integrity andtransparency) describe how leaders lead at 3M.

Our playbook is working
Portfolio Management

Investing in Innovation

Business Transformation

Our Code of Conduct serves as a constant reminderof our core values. The Code is structured around six
core values – Be Good, Be Honest, Be Fair, Be Loyal, Be
Accurate, and Be Respectful.
Our Playbook also defines three Key Levers that we use
to operationalize our Playbook throughout the company
and create value across 3M – Portfolio Management,
Investing in Innovation, and Business Transformation.
Portfolio Management seeks to align resources behindthe best opportunities, investing in attractive, highvalue markets, while de-emphasizing or exiting lessattractive spaces. Investing in Innovation is an importantelement in delivering premium value for our customers
and premium returns for our shareholders. BusinessTransformation starts and ends with our customers andis fundamentally transforming the company and how
we do business. We are optimizing and standardizing
our global business processes to generate scale andleverage, deploying a single instance global enterprise
resource planning (ERP) system that provides datatransparency across the enterprise, and creating a global
service model to optimize our supply chain and businessservices operations. All of these activities significantly
enhance customers’ experiences with 3M, making ourcustomers more efficient and competitive, while also
improving our internal efficiency and productivity ineverything that we do, in a sustainable way – making us
more competitive and profitable.

5©April
3M 2018 . All Rights Reserved.

In combination, the five elements outlined in the
Playbook serve as the foundation for our strategy.
We are focused on succeeding in attractive global
markets ensuring we deliver value to our customers,
shareholders, and employees.

Lobbying and Political
Activities Principle
As a concerned member of our communities, 3M
actively participates in public policy and legislative
advocacy, or “lobbying.” As appropriate, 3M also
participates in political activities to elect and workwith elected representatives and government officials.
3M’s Government Affairs organization coordinates andoversees 3M’s lobbying and political activities. 3M
Political Activities Board, which is made up of senior
3M executives, oversees 3M’s political contributions
and the activities of 3M’s Political Action Committee(3M PAC). 3M PAC is a nonpartisan fund comprised ofvoluntary employee and stockholder contributions thatis used to make contributions to U.S. federal, state, andlocal candidates as permitted by law. These activities
must always comply both with applicable laws and 3M’s
Lobbying and Political Activities Principle.

1

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Our Actions

Board Refreshment
We regularly add directors to infuse new ideas andfresh perspectives into the Boardroom. In the past five
years, seven new independent directors have joined
our Board. In recruiting directors, we focus on how theexperience and skill set of each individual complements
those of their fellow directors to create a balanced
Board with diverse viewpoints and backgrounds, deep
expertise, and strong leadership experience. Amy E.
Hood joined the Board in August 2017. Amy Hood is
Executive Vice President and Chief Financial Officerof Microsoft Corporation, responsible for leading theworldwide finance organization, including acquisitions,treasury activities, tax planning, accounting andreporting, and internal audit and investor relations. She
brings tremendous skill and experience to the Board,
especially in strategic business development, finance,and digitization.

#improvinglives | 89How We Work | Corporate GovernanceCorporate Governance Highlights
Board Size and Independence

Corporate Governance Guidelines

Independent Lead Director

Meeting Attendance

3M Shareholders

98%• 11 out of 12 Directors
are independent• Independent Lead Director withrobust authority• Overall attendance at Board andcommittee meetings• Combined Chairman and
CEO positions• There were seven Board meetingsin 2017

Director Tenure
3

1

Director Age
5

2

AverageBoard
positions

years

4

3

2

1.4

64.3

years

Corporate Auditing

Chairman of the Board,
President andChief Executive Officer

2

2

7.3

Other Public Company Boards

3M Board of Directors

4

3

3M Foundation Board• Audit Committee• Compensation Committee• Finance Committee

55-9 years< 59 years

60-65 years

0 boards

1 board10-14 years

15-18 years

66-70 years

71-73 years

2 boards

3 boards

The Corporate Governance Highlights above reflect the Board’s current 12 directors. One of the directors, Vance D. Coffman, is nolonger eligible to stand for re-election as he has reached the mandatory retirement age.

We maintain a vigorous stockholder engagement
program. During 2017, members of senior management
met with a cross-section of stockholders owning
approximately 35 percent of our outstanding sharesor approximately 50 percent of our institutional
stockholders. The meetings included an overview of thecompany and a discussion of the company’s practices
on corporate governance. Staff from our Sustainability• Nominating and Governance Committee(Independent Corporate Contributions)

0-4 years

Stockholder Engagement

Compliance and Business Conduct

Board Committeesorganization also attended these meetings andsummarized 3M’s more than 40 years of environmental
stewardship. The feedback from these meetings wasshared with the Board of Directors and helped inform theBoard on corporate governance practices and trends.

Corporate Operating
Committee

Crisis Management
Committee

Corporate Environmental,
Health & Safety(EHS) Committee

Business Conduct
Committee

Other Committees &Centers of Excellence

Corporate Staff Functions

Business Group Management

Area Management• EHS• Consumer• Asia Pacific• Sourcing/Supply Chain• Electronics & Energy• Canada• Finance• Health Care

• Europe/Middle East/Africa• Industrial• Latin America• Safety & Graphics• United States• 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

90 | 3M 2018 Sustainability Report#improvinglives | 91How We Work | Corporate Governance

Governance Actions

Diversity

Our committees are designed to assure the executionof 3M’s vision for the future. The Board currently has 12
directors and the following four committees following
their charter: Audit, Compensation, Finance, andNominating and Governance. During 2017, the Board of
Directors held seven meetings. Overall attendance atBoard and committee meetings was 98 percent.

For 3M, diversity, in its myriad manifestations,is fundamental to innovation, performance, and12
relevancy. 3M employees reflect that diversity.
The Board of Directors regards diversity as an importantfactor in selecting Board nominees to serve on the
Board. Although the Board has no specific diversity
policy, when selecting nominees, it actively considers
diversity in recruitment and nomination of directors,
such as gender, race, and national origin. The current
composition of our Board reflects those efforts and theimportance of diversity to the Board.

Director Independence
The Corporate Governance Guidelines andDirector Independence Guidelines provide that41
independent directors must comprise asubstantial majority of the 3M Board. A director is“independent” if the Board affirmatively determines thatthe director has no material relationship with thecompany directly or as a partner, shareholder, or officerof an organization that has a relationship with thecompany and otherwise meets the requirements forindependence of the listing standards of the New York
Stock Exchange. The independent directors will makethe Board decisions on corporate governance matters.

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The Guidelines specify the criteria by which theindependence of our directors will be determined,
including strict guidelines for directors and their
immediate family members with respect to past
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.

An inclusive culture at 3M is built on our Be RespectfulPrinciples— to respect the dignity and worth ofindividuals; encourage the initiative of each employee;
challenge individual capabilities; and provide equal
opportunity. 3M is continuously focusing on building andmaintaining an inclusive culture. Additional informationon our inclusive culture can be found in the Diversity andInclusion section.

Commitment to Sustainability
At 3M, we are working hard to advance every
company, enhance every home, and improve
43-46
every life. We apply our expertise, andtechnology to solve problems collaboratively, and with afocus on long term, sustainable solutions that
demonstrate our commitment and societal purpose.
Sustainability is fundamental to our business – from
Sustainability-inspired innovation to productstewardship to Sustainability in our operations. As weseek to improve every life, we see partnerships to help
our customers and communities achieve their
Sustainability goals as key to that ambition.
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Our corporate vision states: “3M technology advancing
every company... 3M products enhancing every
home... and 3M innovation improving every life.” Itis that vision – carried out in collaboration with ourcustomers, communities, and partners – that guides our
Sustainability strategies and goals and aspirations.
In January 2013, our CEO elevated the company’s
focus on Sustainability, with emphasis in two areas: (1)developing and commercializing products which help
our customers solve their Sustainability challenges;

92 | 3M 2018 Sustainability Report

and, (2) driving Sustainability within 3M operations andsupply chain. Sustainability is now embedded acrossthe company with dedicated teams in research anddevelopment (R&D), Supply Chain, business groups, andregions across the globe. Recently, the establishmentof an executive committee, the Science, Technology,
and Sustainability Committee, elevates the visibility
and focus on science, technology, and Sustainability
across the enterprise. The Committee demonstrates acommitment to each of these three focus areas as coreto the advancement of 3M; research and development is
the heartbeat of our company, and Sustainability drives
and enables innovation – in our manufacturing, in our
products, and in new technologies. The committee willassess and advance strategic growth areas, long-term
investments, and Sustainability – inspired innovation
opportunities. Committee members are: Inge Thulin,
Chairman of the Board, President and Chief Executive
Officer; Michael Roman, Chief Operating Officer
and Executive Vice President; H.C. (Hak Cheol) Shin,Vice Chair and Executive Vice President, (Committee
Chair); Nicholas Gangestad, Senior Vice President andChief Financial Officer; and John Banovetz, SeniorVice President, Research and Development and Chief
Technology Officer.
Additional information can be found in our
2018 Proxy, Commitment to the Environment andSustainability: here.

Lobbying and Political
Activities Principle•

International trade policy, agreements, andenforcement•

Immigration and workforce development•

Regulatory relief and economic development policy•

Cyber security policy•

Patent Protection and legal reform•

Sustainability and environment policy

Detailed information on each can be found in our 2017
U.S. “Top-10” Priority Public Policy Issues.

Governance Links
For more information on corporate governance at
3M, see:•Corporate Officers•

Board of Directors•

Committee Composition•

Governance Documents•

Annual Reports and Proxy Statements

Looking forward…
We regularly post governance news, events, andpresentation information in the Investor Relations sectionof our website. See 3M Events and Presentations.

All 3M PAC receipts, disbursements, and contributions
are publicly disclosed as required by law. 3M’s reports
are available on the Federal Election Commission
website. Corporate contributions directly to candidates,
political committees, ballot measures, Section 527
organizations, and issue advocacy or “lobbying”
are outlined in our Political Activities and Issue
Advocacy report.
In 2017, 3M’s top priority public issues were:•Tax reform•

Health care reform•

Defense•Transportation and infrastructure investment#improvinglives | 93How We Work | Enterprise Risk

Enterprise Risk
Our Commitment
At 3M, we continually evaluate our approach to potential
risks facing the company. The concept of risk appetiteand tolerance is an essential component of our strategicplanning, and it’s the responsibility of our senior businessleaders to plan accordingly.
It is our firm belief that good corporate governancepractices serve 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 uncompromising integrity
and doing business the right way. Governance includes
broad risk oversight by the Board and its committees.
Risk analysis is reported to the full Board, the General
Auditor, and Chief Compliance Officer. Both the General
Auditor and Chief Compliance Officer are appointed by,
and report to, the Audit Committee of the Board.

94 | 3M 2018 Sustainability Report

Risk Oversight
The Board has delegated primary responsibility
for the oversight of risks facing the company to
46
the Audit Committee. The 3M Company Boardof Directors Audit Committee Charter states that thecommittee will “discuss policies and procedures withrespect to risk assessment and risk management, thecompany’s major risk exposures, and the steps
management has taken to monitor and mitigate
such exposures.”
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The Vice President and General Auditor, Corporate
Auditing, whose appointment and performance isreviewed and evaluated by the Audit Committee, is
responsible for leading the formal risk assessment andmanagement process within the company. The Auditor,
consulting with the company’s senior management,
annually assesses the major risks facing the company
and works with those executives responsible formanaging each specific risk. The Auditor periodically#improvinglives | 95How We Work | Enterprise Risk

reviews with the Audit Committee the major risks facing
the company and the steps management has taken tomonitor and mitigate those risks.
While the Board’s oversight of risk is primarily performedby the Audit Committee, the Board has also delegated toother committees the oversight of risks within their areasof responsibility and expertise.
We believe this governance of risks by Board
committees, who share information with the full
Board, is appropriate for a diversified technology andmanufacturing company like 3M. 3M’s 10-K, Item 1A,
outlines risk factors applicable to the company.

Our Actions
Corporate-Level
3M’s Enterprise Risk Management (ERM) initiative,
launched in 2001, has helped assure adequate
recognition and ownership of the most significant
potential risks to the company’s shareholder value, using
a process that proactively identifies and communicatesenterprise risks within the company. This includes:
confirming that appropriate plans and oversight exist
for all major risks; providing for ongoing review andassessment of risk; and aiding in generating awarenessand engagement of general risk matters throughout
the company. The approach provides a customized
capability that leverages 3M’s comprehensive,
experience-based global knowledge and capabilities
rather than tools often used in financial- or insuranceoriented businesses.
To assure long-term success, we are committed to
discovering and preparing for all potential threats toour Vision. Risk owners familiar with the environmental,
economic, and business aspects within the company
are interviewed and requested to complete a thoroughassessment for their respective risk(s). Together, withsubject-matter experts and senior management, theoutcomes are mapped to demonstrate the relative levelof risk and likelihood of risk. This ‘heat map’ identifies thehighest risk areas to focus internal efforts on. In addition,
external resources and data are continuously reviewed
to assist in the risk identification process. The results ofour various risk assessment exercises are shared with the
96 | 3M 2018 Sustainability Report

Corporate Operations Committee and the company’s
full Board of Directors.
3M places particular emphasis on protecting ourcompany against emerging risks in an ever-changing
world. Case in point: cybersecurity. Strong cybersecurity
programs are essential, and we continue to invest in
information technology systems and activities aroundcybersecurity training and awareness, especiallywhen it comes to avoiding phishing and other threatstargeting 3M.

Global ERP Deployment Strategy and Timeline
Foundation

Deploy and Optimize

2011

2012 – 2020
Establishedmethodology

Today

Pilot Countries

Global Service Centers (GSC)

1:1 Board Member-General
Auditor Meetings
In 2017, the Vice President, General Auditor met witheach independent 3M Board member, to discuss risk
management in general as well as specific risk-related
topics facing the company. These meetings gave Board
members an opportunity to share what risk issues were
top-of-mind for them, and which should be reviewed
and addressed by the Board. For most Board members,
the most critical risk in 2017 and into the future
was cybersecurity.

Business-Level
3M serves customers through five business groups.
Annually, leadership from each business grouppresents to the Board, and the Board discusses andapproves, detailed long-term strategic plans for thecompany, both at the area and business group level.
Each presentation includes an overview of the businessgroup, short- and long-term financial performance andgoals, an assessment of portfolio growth opportunities;
strategic priorities to drive the three key value creation
levers—Portfolio Management, Investing in Innovation,
and Business Transformation; and plans to drive thefour corporate fundamental strengths—Technology,
Manufacturing, Global Capabilities, and Brand.

Facility-Level
Our Environmental, Health, and Safety (EHS)
organization looks carefully at each 3M site and newacquisition, and performs a crisis risk analysis thatconsiders factors such as potential impact to theenvironment, the community, and 3M employees. EachWest Europe

Ramped-uporganization

U.S.

Central & East Europe/Middle East Africa
APAC
Supply Chain Centers of Expertise (COE)
Latin America

Developed
blueprint
2012

2013

2014

site is ultimately ranked based on the risk they pose to
the company, and necessary steps are taken to minimize
potential risks. Acquisitions are of particular focus as
we bring each new sight under 3M’s protocol with theproper training.
In addition to EHS risk analysis, we have a crisis plan forevery single 3M plant in the world. Although we hopeto never use our Crisis Management Plans, it’s criticallyimportant that we have them in place, keep them up todate, and drill often to make sure everyone understands
what to do should an emergency occur. We care about
the safety of our people and communities aroundthe world.

2015

2016

2017

2018

2019

2020

Looking forward…
3M will continue deploying a single enterprise resource
planning (ERP) system on a worldwide basis, to provide
a consistent, comprehensive, and discrete information
platform for our businesses everywhere. It’s anotherexample of our commitment to continual growth andadaptation to emerging risks in an ever-changing world.

The Crisis Management Planning Guidelines aredesigned to provide a common framework for
integrating crisis management into the standard
operations of each 3M facility. All plans must be
prepared in accordance with good engineering
practices and with the full approval of management.
Also, to evaluate the effectiveness of the plans, scenario
exercises are conducted periodically at facilities.

#improvinglives | 97How We Work | Corporate Code of Conduct

Corporate Codeof Conduct
For 3M people, there is only one
ethical road to travel. The high road.
Our Commitment
The Code of Conduct is part of our 3M
playbook and is critical to driving
6, 10, 56-57
1
sustainable growth. We know thatbuilding an ethical foundation protects the corporationand increases corporate value.
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We owe it to ourselves, our shareholders, and ourcustomers to do the right thing.
Through the years, 3M has built a reputation globally fortaking an ethical approach to business. That said, with
91,500 employees and subsidiary operations in 70-plus
countries, it’s no easy task to do business the right way,
everywhere, every day.
To make it as simple as possible, we have developed
one Code of Conduct that applies globally. Our Codeof Conduct summarizes 3M’s compliance principles
and raises awareness for doing business “the right way,
always, and everywhere.” The Code is our guide for

98 | 3M 2018 Sustainability Reportanswering questions and providing direction when theright choice may not be clear.
Living by our Code of Conduct enhances our reputationand promotes trust with our customers, in our company,
and in the quality of our products.
3M’s Code of Conduct defines how we work:
Be Good
Be Honest
Be Fair
Be Loyal
Be Accurate
Be Respectful
3M employees, including all supervisors, managers,
and other leaders, are responsible for knowing andfollowing the ethical, legal, and policy requirementsthat apply to their jobs and for reporting any suspectedviolations of law or the Code. Executives and managers
are accountable for creating and promoting an inclusive#improvinglives | 99How We Work | Corporate Code of Conduct

workplace environment where compliance and ethicalbusiness conduct are expected and encouraged.
The Code is available in 22 languages and sets
clear expectations for not only employees, but also
relevant stakeholders and business partners. All new
employees receive a copy of the handbook and it is alsoavailable electronically.

••

Programs to conduct appropriate due diligence on
business partners, potential and new acquisitions,and candidates for hiring and promoting•

Investigation expertise•

Incentives and discipline to address compliancesuccesses and failures

Business Conduct Committees
The 3M Business Conduct Committee is composedof several senior executives and is chaired by 3M’sChief Compliance Officer. The Committee has
oversight for 3M’s various compliance efforts and,as appropriate, updates the Audit Committee of the
3M Board of Directors and Corporate Operating
Committee. Additionally, similar committees exist at
country or regional levels to operationalize and prioritize
compliance activities.

Global Compliance Program
3M’s global compliance program is managed andadministered by the Compliance and Business Conduct
Department, led by the Chief Compliance Officer andVice President of Compliance and Business Conduct.
The department is staffed with compliance professionals
stationed at company headquarters and around theworld. The Chief Compliance Officer reports directly
to the Audit Committee of the 3M Board of Directors,
which assists the Board in oversight of 3M’s legal andregulatory compliance efforts. This direct reporting
line assures the independence of the Compliance andBusiness Conduct Department, which is responsible foroverseeing and administering strategic, systematic, andoperational components of 3M’s compliance program.
The compliance program is designed to meet the U.S.
Federal Sentencing Guidelines and, as designed, meets
similar global standards and the general requirements ofother countries’ anti-bribery laws. The program has thefollowing attributes:•

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 effectiveness100 | 3M 2018 Sustainability Report

A 24-hour helpline and website through which
employees and others can report concerns and ask
questions

Compliance Training
and Education
3M offers a comprehensive online compliancetraining program to all employees worldwide.
4
The program’s training modules are assigned to
employees based on their role and area of responsibility
within the company. Most courses are mandatory for
approximately 46,000 global employees, who are
required to take modules on a two- to four-year cycle,
depending on the course. Offered in 22 languages, thetraining modules include:
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Reporting Concerns
Upholding 3M’s Code of Conduct andvalues is the responsibility of everyone
58
5acting on 3M’s behalf. We encourage
our employees to ask questions or report their concerns
to the Compliance and Business Conduct Department,
3M Legal Counsel, their Human Resources Manager, or
their management. 3M makes clear that speaking up is
the right thing to do. We know our employees care about
the company and want to do the right thing.
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In addition, 3MEthics.com is a 24-hour confidential andanonymous (where permitted by local law) helpline andonline reporting system. It is managed by a third-party
vendor and is available both internal and external to
3M. Reports are reviewed and responded to by theCompliance and Business Conduct Department or other
responsible staff departments.
The system does not trace phone calls or use caller
identification, nor does it generate or maintain internal

The Compliance and Business Conduct Department
has the responsibility to review every business conduct
concern that is reported. After review, the Department
determines which reports require an investigation and
if an investigation is needed, assigns the appropriate
investigation resource. For concerns that aresubstantiated, disciplinary action is taken. Discipline
calibration comes, when needed, in a range of forms
consistent with similar past violations, from warnings,
to suspensions, to termination. Disciplinary actions may
impact one or more persons associated with a single
substantiated violation. Below is a graph illustrating

3M Global Allegations and Disciplinary Actions
Total Number•

Data Privacy and Protection: The Real World•

Understanding Information Security
and Protection•

Gifts, Entertainment, and Travel

800•

Avoiding Bribery and Corruption:
A Global Overview

700•

Understanding Global Competition

600•

Creating a Harassment-Free Workplace•

Code of Conduct and Ethical Decision Making•

Recognizing Conflict of Interest

The Compliance and Business Conduct website on
3M’s intranet offers additional on-demand online
training courses. In addition to online training, theCompliance and Business Conduct Department, in close
collaboration with 3M Legal Affairs, local compliancecontacts, finance, and human resources, provides
frequent, tailored in-person training to businesses,
subsidiaries, staff groups, and third parties. Some of thistraining occurs as part of an annual schedule and othertraining occurs as requested or deemed appropriate.

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 has a strong position against
retaliation as is reflected in the Non-Retaliation Policy
and within 3M’s Employee Obligations and Reporting
Principle. 3M prohibits retaliation against anyone who
raises a business conduct concern or cooperates in acompany investigation.

500
400
300
200
100
0
2013

2014
Allegations Reported

2015
Substantiated Allegations

2016

2017

Disciplinary Actions#improvinglives | 101

How We Work | Corporate Code of Conduct

five-year metrics for business conduct-related reports
raised using our reporting tools found at 3MEthics.com.
In 2017, the number of questions or concerns reported
to the Compliance and Business Conduct Department
increased by 31.4 percent. We believe this increasereflects employees’ greater awareness of their reporting
obligation and the available reporting channels. This
increased awareness reflects various activities in 2017,
including deployment of executive videos encouraging
employees to “Speak-up”, and providing enhanced

investigation metrics and communication tools tomanagement to help facilitate employee discussions.
This communication campaign is supported by“Speak-up” posters with a fresh brand design that is
electronically made available in 21 languages. Employee
awareness to “Speak-up” also increased throughperiodic risk-based compliance evaluations of ourbusiness operations and regional initiatives by our local
compliance teams.

“Speak-up” Posters

3M does not tolerate retaliation against anyone forraising a concern. To monitor for this risk, several months
after an investigation closes, the investigator contacts
the reporter to discuss if the person has experienced
any form of retaliation. This is done either by phone orvia email for non-anonymous reporters. For anonymous
reporters who used 3MEthics.com to raise a concern,
the follow-up is handled through 3MEthics.com tomaintain anonymity. If claims of retaliation are identified,the investigation team will follow up on them. Allconcerns raised are expected to be made in good faith.

Assessments

3M encourages all employees to “Speak-up” to raise aconcern or suspected violation of the Code. The posters
are available in 21 languages.

Hãy trở thành thành viên của 3M

Hãy lên tiếng.
Hãy đặt câu hỏi.

Hãy nói ra những mối quan ngại.

Truy cập 3M-Ethics.com
Tiếng Việt 120-11067
Bạn cũng có thể liên hệ với giám đốc, Bộ phận Tuân thủ & Tiến hành Kinh doanh, Pháp chế hay Nhân sự.

As a member of the United Nations
Global Compact, 3M is committed to15
4-5
support Principle 10 on AntiCorruption. Our commitment and involvement in aworking group associated with Principle 10 give us theopportunity to learn best practices related to anticorruption from peer companies. In addition, 3M
actively conducts benchmarking with similar companies,
and helps educate other professionals working in anticorruption through the participation of our Chief
Compliance Officer and other Compliance and BusinessConduct Department professionals in anti-corruption
conferences and organizations.
G4

G4

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3M’s Anti-Bribery Principle requires compliance with allapplicable anti-bribery laws, including the U.S. Foreign
Corrupt Practices Act, the U.K. Bribery Act and local
laws where 3M operates. It applies to 3M employees,
as well as to our business partners. In addition,
anti-corruption policies and procedures have beencommunicated to all employees, and “Global Bribery andCorruption Awareness” training is required of employees
in higher-risk roles, including those in Legal, Audit,
Sales, Marketing, Export and Global Trading. The Chief
Compliance Officer provides quarterly updates on all
activities to the Audit Committee of the Board.

Not only do audits, evaluations, and risk assessments
help detect opportunities for improvement and gaps
in processes or procedures, they also reinforce theimportance of operating in an ethical, compliant manner.

Further, the Compliance and Business Conduct
Department collaborates with 3M Legal Affairs on due
diligence processes related to potential new venture
investments and mergers and acquisitions. These
processes help identify risks in the target company
before acquisition or investment and accelerate ourefforts to integrate an acquired company’s employees
to 3M’s compliance program and culture. Ultimately,
the Compliance and Business Conduct Department ischarged with conducting a complete risk review andimplementing any necessary remediation activities

SO

Trung thực là chính sáchtối ưu của chúng ta.

Commitment toAnti‑Corruption

A dedicated team within 3M’s Compliance andBusiness Conduct Department conducts
3
periodic compliance and anti-bribery
evaluations in various 3M subsidiaries and operating
units each year. These evaluations are selected using
objective and subjective risk factors, and include reviewsof financial transactions, compliance records, interviews
with business personnel, and audits of selected thirdparty intermediaries. In 2017, we interviewed over 550
non-production employees as part of the evaluation
process. Additionally, in 2017, we introduced anenhancement to this program called “local evaluation.”
A local evaluation uses the same methodology of theexisting evaluation program but has smaller teams, a
more focused scope, and is completed in half the time.
Finally, the Compliance and Business Conduct
department had an internal assessment of the program
completed by 3M’s Internal Audit function. The resultsof the assessment have been used to create prioritizedaction items to drive further improvements andenhancements to our compliance program.
G4

Chính Sách Ứng xử Kinh doanh và Tuân thủ của 3M

102 | 3M 2018 Sustainability Report

3M’s Non-Retaliation Process

3M’s commitment to anti-corruption is also reflectedin our management of third-party intermediaries andother business partners. Based on an assessment oftransaction, geography, and other risk factors, 3M
conducts due diligence reviews of our third parties.
Depending on the outcome of the review, we respondto any identified risks with training, inclusion of relevant
contractual terms, and other risk-mitigating controls.

#improvinglives | 103

How We Work | Corporate Code of Conduct

upon the closing of every acquisition, using anestablished protocol and expert staff. In 2017, as partof our compliance integration process, we piloted acompliance culture survey to help identify areas or
topics that should be prioritized during our complianceintegration process.

Political Values
3M respects our employees’ right to engage inthe political process and, at the same time, 3M6
is committed to prevent potential corruption.
When allowed by law, any corporate politicalcontributions outside the United States require approvalby the Area Vice President and assigned legal counsel.
G4SO

For additional information on our Code of Conductplease visit:https://www.3m.com/3M/en_US/company-us/
about-3m/compliance-business-conduct/code/

Third Party Brochure
To enhance our communications and expectations withthird parties, 3M has an online training course and has
created a brochure for our business partners. The online
training course covers anti-bribery and is available in
22 languages. The brochure, available in 27 languages,
provides another way for 3M to communicate with ourbusiness partners regarding our commitment to combat
global bribery.

Doing business the right way is a key elementof sustainable growth. Our customers want
to do business with companies they trust andemployees want to work for a company withpurpose and values.
Veena Lakkundi
3M Chief Compliance Officer and Vice President
Compliance and Business Conduct

104 | 3M 2018 Sustainability Reportwith employees about compliance. Among the items
provided were flash cards featuring case studies from
actual investigations where poor ethical decisions
were made, highlighting best practices and available
resources. The kit included other items that remind ourleaders of their important role in promoting a culture ofcompliance and the commitment to doing business theright way.

Our Actions
Conflict of Interest
Certification
Approximately 47,000 non-production employees
are required to complete an annual conflict of interest
certification. In addition, all employees are required todisclose potential conflicts of interest on an on-goingbasis. Starting this year, an enhancement was madeto 3M’s Employee Management System (EMS) to
support and centralize the record keeping of all
employee disclosures, in compliance with local laws.
Centralizing the record keeping eliminated storage in
multiple disparate systems and supporting processes.
The enhancement further improves governance of
these matters and promotes transparency and a cultureof compliance. Now, supervisors have visibility toemployee disclosures and the management system
automates the annual review and update processes.
The Compliance and Business Conduct Department
oversees the new process and provides training andguidance to supervisors, employees, and other local
resources who assist with this process. 3M has also
incorporated conflict of interest disclosure requirements
as part of the due diligence process for third-party
intermediaries.

Executive Videos
To further enhance our culture of compliance, wecreated a series of short videos featuring 3M executives.
In these videos, the executives share personal stories
about ethical situations they have faced in their careersand how they handled them. The videos were translated
into 10 languages and distributed globally.

Global Compliance Days
Around the globe, 3M celebrates Compliance Daysor other types of interactive sessions, to engage
employees on the topic of ethics and doing the rightthing. For the first time in 2017, the U.S. held an eventat corporate headquarters, “Bringing the Code to Life,”
which featured our Chairman of the Board, President,
and Chief Executive Officer, Inge Thulin, as well as
keynote speaker Allan McDonald, who spoke about the
ethical and leadership lessons learned from the Space
Shuttle Challenger disaster. The day also featured Veena
Lakkundi, Chief Compliance Officer and Vice President
as well as Ivan Fong, Senior Vice President and GeneralCounsel of 3M. In addition, representatives from various
compliance departments from around the company
were stationed at booths to engage employees.

Leadership Communications
Aids and Toolkits
Executives and Managing Directors around the globe
this year received a leadership kit designed to reinforce
our commitment to compliance by providing resources
and tools for leaders to help facilitate discussions

In addition to the flash cards, executives received aseries of more detailed case studies to create additional
dialogue with employees about how to identify andmanage potential ethical concerns. The studies werebased on real events and were created in a format thatallowed them to be used easily in standard employee
presentations and communication packages. These
case studies were issued on a periodic basis to keep thecontent relevant and current.

Looking forward…
We are focused on enhancing our culture of complianceand improving our controls to drive process efficiency
and further mitigate risk.
We are launching new strategies to support our 2018
focus of “Everyone Living the Code,” throughout theworld. We will build upon our established culture of
ethics and compliance, by initiating programs to reachkey employees with compliance messaging pertinent
to their roles. For example, we will conduct one-on-one
in-person training sessions for global employees incritical leadership roles, incorporate more case studies in
employee communications and training, and review andtest different communication channels and methods toreinforce key messages or raise employee and business
partner awareness of compliance expectations andconcern reporting mechanisms at 3M. Additionally, we
will continue to enhance our third-party due diligenceprocess. We will work to simplify the design and process
to minimize touchpoints and reduce cycle times. We
will also continue to assess the scope of our third-party
diligence process and make necessary adjustments
to address current global risks. Finally, we will focus
on analyzing data captured through our complianceprogram to better identify, prevent, and mitigate risk. We
will leverage this information to improve metric reporting
packages provided to our stakeholders and inform future
evolution of our compliance and ethics program.

#improvinglives | 105

How We Work | Human Rights

Human Rights
At 3M, there is only one way to dobusiness. The right way.
Our Commitment
3M is committed to assuring human rights in our own
operations and in any business that works on our behalf.
Our Human Rights Policy applies to all 3M employees,
contingent workers, anyone doing business with or on
behalf of 3M, and candidates for hire at 3M. In 2014,
we became a participant of the United Nations Global
Compact (UNGC), thereby committing to align ouroperations and strategies with the UNGC principles onhuman rights.

The principles that guide us
Within our own business, 3M’s approach for
managing and assuring human rights aligns with
4-6
3M’s Code of Conduct, which recognizes theright of employees to have a respectful workplace. We
continue to implement our human rights programG4

HR

106 | 3M 2018 Sustainability Reportthrough our global policy statements, a management
system utilizing self-assessments, audits, training, andultimately, metrics tracking. Our audit process is truly
global, and we are increasing the number of assessments
we are performing, which gives us a global perspective
on our own internal locations, particularly our
manufacturing locations.
We support the United Nations Guiding Principles(UNGP) on Business and Human Rights, and its “protect,respect, and remedy” framework. Our human rights
management system helps us manage salient humanrights issues. We support the principles of due diligence
outlined in the UNGP. Furthermore, our Code of
Conduct requires compliance with all applicable laws
and respect for internationally recognized human rights
in all of our global operations.
We also recognize the International Labor Organization
Declaration on Fundamental Principles and Rights
at Work. Adopted in 1998, the Declaration commits#improvinglives | 107

How We Work | Human Rights

Member States to respect and promote principles andrights in four categories, whether or not they have
ratified the relevant conventions: freedom of associationand the effective recognition of the right to collective
bargaining; the elimination of forced or compulsory
labor; the abolition of child labor; and the elimination of
discrimination in respect of employment and occupation.

Human Rights Elements
Our commitment to upholding human and workplacerights is embodied in the 3M Human Resource
Principles, which respect the dignity and worth of all
individuals, encourage the initiative of each employee,
challenge individual capabilities, and provide equal
opportunity for development.

Respectful Workplace
3M’s Respectful Workplace Principle states that“everyone is entitled to respectful treatment in the
3M workplace. Being respectful means being treatedhonestly 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 morethan compliance with the law. It is a work environmentthat is free of inappropriate or unprofessional behavior
and consistent with 3M’s ethics and values— a place
where all employees can do their best, and are free toreport workplace concerns without fear of retaliation or
reprisal.”

Working Hours and Living Wages
3M complies with minimum wage legislation globally,
and we make every effort to exceed legal minimum
wage. Our competitive compensation reflects ourpractice of establishing competitive salary ranges basedon actual pay data from benchmark peer companies
in manufacturing. 3M also complies with all applicablelaws relating to overtime and breaks.

108 | 3M 2018 Sustainability Report

Freedom of Association andCollective Bargaining
3M works diligently to create a work
culture that affords all employees the
114
opportunity to work without fear of
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.
G4

G4

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Our Human Rights Policy has a specific subdivisionon the freedom of association, which assures that we
respect “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.” In the event of business operations
changes, we follow all applicable local laws andregulations regarding notice periods for both union andnon-union employees.
Approximately 16 percent of 3M’s global workforce
is unionized. We are aware that in some countries,
collective bargaining rights are not protected orrecognized. Nevertheless, 3M assures that freedomof association and collective bargaining aspects of
our Human Rights Policy apply to all 3M employees
worldwide.

Child Labor/Minimum
Hiring Age
The permissible hiring age for employees mayvary based on the laws of different countries.
5
However, 3M has adopted global expectations
regarding the hiring of minors. Even if local law permits
it, 3M will not hire any employee or contingent worker(individual provided by a third-party staffing agency toperform temporary work) below the age of 16 for any
job. If the applicable laws impose a higher minimum age
requirement than 16, 3M follows the stricter standard incompliance with the law.
G4

HR

Forced and Compulsory Labor
3M complies with all applicable laws andemployment regulations and does not engage or6participate in forced labor. We have those same
expectations for all vendors doing business with us.
G4HR

Human Trafficking
Our approach to human trafficking, sometimes referred toas “modern slavery,” is very simple: we do not tolerate it.
Our Human Rights Policy contains our prohibition onhuman trafficking. We are committed to using effective
systems and controls to prevent human trafficking
from taking place anywhere within our business or
supply chains.
The prohibitions apply to 3M and its subsidiaries as wellas to our federal contracts and subcontracts for either
commercial or non-commercial items.
Expectations regarding labor and human resource
practices also apply to our suppliers (see the Suppliersection of this report for more details). They apply tothe selection and retention of all suppliers worldwide.
3M suppliers must comply with all local country laborand human resource laws and cannot use labor that is
obtained through mental or physical coercion, physicalpunishment, slavery, or other oppressive labor conditions
and cannot engage in any form of human trafficking.

Filing, Addressing, andResolving Workplace Concerns
When concerns related to human rights, labor practices,
environmental, or safety issues arise, our employees areencouraged to raise questions or report misconduct or
potential misconduct to the Compliance and BusinessConduct Department, 3M Legal Counsel, their
Human Resources Manager, their management, or to
3MEthics.com. See 3M’s Business Conduct website formore information regarding how to report a concern.
Additional information on reporting concerns can befound in the Code of Conduct section.
3M has a strong position against retaliation as is reflectedin the Non-Retaliation Policy and within 3M’s Employee
Obligations and Reporting Principle. 3M prohibits
retaliation against anyone who raises a business conduct
concern or cooperates in a company investigation.

In addition, we conduct audits of site workplace andhuman resource practices, as well as assessments andaudits of suppliers to assure compliance with 3M’s
expectations related to labor practices (see the Suppliersection of this report for more details).

Assuring Human Rights
through Training
We perform global training to assure that all 3M
employees comply with the law, 3M’s Code of2
Conduct and supporting policies, standards,
and procedures. 3M Compliance and Business
Department has created a Compliance Training andCertification Program that assures all 3M employees areaware of and understand their responsibilities andobligations. 3M’s Compliance and Business Conduct
Department is responsible for the management andadministration of the Compliance Training andCertification Program.
G4HR

Our Global New Employee Compliance Course
Program is based on employee records in the 3M
Human Resource (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 theemployee’s 3M internet email address informing them of
their course requirements and timeline for completion.
New employee courses are due within 60 days ofassignment.

Human Resource
Security Standard
With the alarming rise in corporate security
breaches worldwide, this standard presents the7
general information technology security
controls required to achieve Human Resource Security
based on industry standards and best practices.
G4

HR

Roles and responsibilities of information security
employees, contingent workers, and suppliers must
be defined and documented in accordance with the
3M Information Security Management System (ISMS).
Background verification checks on all candidates for
employment, contingent workers, and suppliers must be
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How We Work | Human Rights

and ethics, and be proportional to the business
requirements, the classification of the information to beaccessed, and the perceived risks.

•As part of their contractual obligation, employees,
contingent workers, and suppliers must agree to andsign the terms and conditions of their employment
contract, which states not only their own, but theirorganization’s responsibilities for information security.

Human Rights Due Diligence

Management must require employees, contingent
workers, and suppliers to apply security in accordancewith established policies and procedures. All 3M
employees and, where relevant, contingent workers andsuppliers, must receive appropriate awareness training
and regular updates in organizational policies andprocedures, as relevant for their job function.

Our Actions
We will continue to develop products and procedures topromote safety for 3Mers, our customers, and suppliers.
At the same time, we have a strong business conductand compliance system in place at 3M, and will continue
to work to assure that 3M business partners follow
ethical business practices.

Human Rights Charters
G4

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15

3M continues to support several
human rights charters.
Among them:•

United Nations Global Compact•

Universal Declaration of Human Rights•

European Convention on Human Rights•

United Nations Guiding Principles on Business andHuman Rights••

International Labor Organization’s Declaration on
Fundamental Principles and Rights at Work
OECD—Organization for Economic ­Co-operation
and Development Guidelines for Multinational
Enterprises, including OECD Due Diligence
Guidance for Responsible Supply Chains of Minerals
from Conflict-Affected and High Risk Areas

110 | 3M 2018 Sustainability Report

Agenda 21—United Nations Convention
against Corruption

The 3M Code of Conduct describes thecompany’s business conduct principles, or core2
values, which set forth global corporate
expectations for all 3M employees and certain third
parties who act on 3M’s behalf. Those values have notchanged over time. The principles in this Code remain
consistent with 3M’s longstanding business conduct
principles, its values, and our shared ethical standards
for conducting business with uncompromising honesty
and integrity.

Within our own businessWithin 3M, our approach to managing and assuring
human rights aligns with the 3M Code of Conduct,
which recognizes the right of employees to have arespectful workplace.

contract workers are held to the same safety and healthrequirements as 3M employees.
See the Health and Safety section for additional
information on this assessment process.

G4SO

In our view, human rights due diligence requires aholistic approach. So we assess our own business,others acting on our behalf, suppliers, government
relationships, acquisitions, mergers, and divestitures – toidentify the salient human rights issues applicable toour business. We have a grievance mechanism in place,
3MEthics.com, which can be used to raise a concern
regarding any adverse human rights impacts. We also
comply with all applicable laws, and honor the principles
of internationally recognized human rights when facedwith conflicting requirements.

Human Rights Assessments
Our assessment on human rights aligns with our
corporate Human Rights Policy, as outlined
4-5, 9under Our Commitment, and includes: safe andhealthy workplace, respectful workplace, workplacesecurity, work hours and wages, freedom of association,
child labor, forced labor, or recruitment fees to obtain
employment. Evaluations are integrated into otherassessment and management processes, based onmaterial issues regardless of where they’re identified
within the value chain.
G4

To protect that right, our Field Employee Relations(ER) Assessment tool enables any 3M location to selfassess its policies and practices. Using the tool, andtracking data throughout the assessment process, local
managers can review practices related to 3M’s Human
Rights Policy, identify strengths and opportunities for
improvement, and develop an action plan for closing any
potential gaps.
In 2017, a stakeholder asked 3M to demonstrate its
commitment to the 3M Human Rights Policy in China.
We explained that for the past eight years, the ER
Assessment tool has been used at all 3M locations in
China to evaluate the workplace environment. As a resultof those evaluations, we have identified and addressedmore than 100 action items. Every year in China,
we also provide training for production supervisors,
production leaders, and lead operators on criticalaspects of emergency room assessment. In addition,
we collaborate across locations through a monthly ER
forum, an event in which ER professionals can discuss
relevant topics and share best practices and processes.
For additional details on our employee processes,
see the Diversity and Inclusion and Employee
Programs section.

HR

3M continues to implement our human rights program
through our global policy statements, a management
system utilizing self-assessments, audits, and training.
Based upon this assessment process, we havedetermined that in our various spheres of influence(our own business and others acting on 3M's behalf),
the sphere with the greatest potential for human rights
impact is within our supply chain.

Others acting on 3M’s behalf
Upholding 3M’s Code of Conduct and values is the
responsibility of everyone acting on 3M’s behalf.
Multiple processes are in place to assure 3M’s principles
are being upheld by others acting on 3M’s behalf. Casein point: our approach to health and safety.
Under our Workplace Environmental, Health and
Safety Principle, 3M’s Code of Conduct requires 3M
employees to select and retain suppliers, contractors, oroutsourced manufacturers and service providers whocomply with all applicable laws and regulations andmeet 3M’s environmental, health, and safety values.
In addition, at 3M locations, all visitors, vendors, andOur suppliers
At 3M, we recognize the choices we make for ourmaterial and service providers must also reflect ourvalues. We want our suppliers to share our commitment
to maintaining compliant, responsible, and sustainable
operations and practices. In addition to full compliancewith all applicable labor and human resource laws, we
expect our suppliers to be committed to upholding
the human rights of workers, and to treating them with
dignity and respect as understood by the international
community. This applies to all workers including
temporary, migrant, student, contract, and direct
employees. These expectations are laid out in the 3M
Supplier Responsibility Code.
We have a 2025 goal to drive supply chain Sustainability
through targeted raw material traceability and supplierperformance assurance. For details on our prioritizedsupplier assessment process, see the Supplier section.

Government Relations
Under our Be Fair Principle, 3M is committed tobeing a responsible company with
6
uncompromising integrity in all its dealings withlocal, state/provincial and national governments, andtheir prime contractors and subcontractors around theworld. In all of our activities with governments, we
carefully follow all applicable laws, rules, andregulations.
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HR

Before entering into any government contract, or any
agreement related to a government customer, 3M
employees must consult 3M’s Government Contract
Compliance Department or their business unit’s assigned
legal counsel.
Human Trafficking and forced labor-related provisions
are also included in 3M’s government contract
flow-down requirements for suppliers. In the UnitedStates, the government has adopted a regulation (FAR
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How We Work | Human Rights

slavery, servitude, forced and compulsory labor, andcoercion to induce a commercial sex act or to procure
the same – all of which result in the deprivation of aperson’s liberty by another in order to exploit them forpersonal or commercial gain. 3M has implemented
processes to assure compliance with the U.S. FAR,
including a Human Trafficking Prevention Standard.
For more information, see Doing Business with
Government Agencies and Contractors Principle.

Acquisitions, Mergers,
and Divestitures
3M regularly pursues the sale and purchase ofbusiness interests. For each business that may
2
be acquired or divested, human rights issues areprioritized and addressed relative to risk and complianceduring the acquisition integration or divestiture process.
G4

SO

Partnering with Local
Communities and Customers
Under our Be Respectful Principle, 3M’s core values
include treating each other and our stakeholders
with respect and respecting our social and physicalenvironment.
With our Every Life Ambition, we work to imagine aworld where every life is improved. The power is inpartnership. As a global corporation, we believe that wehave a significant responsibility to society in general, andespecially to the communities in which we live and work.
We have created a robust, stakeholder-driven approachto Sustainability materiality that includes humanrights. Our materiality assessments and stakeholder
engagements are vital components of our company’s
strategy and reporting. Details of our materiality
assessment can be found in our Materiality section. Our
2025 Sustainability Goals were developed from themateriality assessment. For additional information on
our stakeholder engagements, see the Engaging Our
Stakeholders section.

#improvinglives means applying ourscience to protecting people andenhancing communication.
We create products that inspire creative communication and visual impact andassure safety across diverse industries and applications – from workers to roads, tofacilities and security—we provide sustainable solutions in an ever-changing world.

Looking forward…
In 2017, 3M issued our first statement under the United
Kingdom Modern Slavery Act, which expects companies
to disclose their efforts to eradicate modern slavery
and human trafficking in their own operations andtheir supply chains. 3M is committed to furthering theprinciples of this law, and our first statement details
how. We will continue to strengthen our due diligence
management system to identify and address any salient
human rights issues within our sphere of influence, andstay aligned with internationally-accepted frameworks
like the United Nations Guiding Principles.

Safety & Graphics
112 | 3M 2018 Sustainability Report

How We Work | Compensation

Compensation
Our Commitment
3M is committed to providing competitive market pay
and comprehensive benefits. In addition to providing aprofessional work environment that promotes innovation
and rewards performance, 3M’s total compensationfor employees includes a variety of components forsustainable employment and the ability to build a strong
financial future.

Executive Compensation Policies
and Practices
3M is a pay-for-performance company. In addition
to base salary, executives are compensated for theircontributions to the company's growth, profitability,
and other goals. This compensation falls into one of two
categories: short-term cash incentives in the form of anannual performance-based award opportunity, as well
as long-term equity incentives in the form of annual
awards of performance shares and stock options, and incertain circumstances (for purposes of hiring or retaining
key talent, for example), grants of restricted stock or
restricted stock units.

114 | 3M 2018 Sustainability Report

As detailed in the 3M Board of Directors Compensation
Committee Charter, all aspects of this compensation are
reviewed regularly by the Compensation Committee,
which is composed solely of independent nonemployee
directors. The committee, along with an independentcompensation consultant, assesses the design andrisks associated with executive compensation,and recommends changes when appropriate. Its
recommendations related to compensation for 3M’sChief Executive Officer are subject to ratification by allof the independent members of the Board of Directors.
The Compensation Committee reviews stakeholder
proposals relating to executive compensation mattersand recommends to the Board the company’s response
to such proposals.
Like most of 3M’s U.S. employees, 3M executives
are also eligible to participate in three deferredcompensation plans, which enable them to save forretirement or other reasons, and receive certain otherbenefits. Approximately 100 executives participatedin this program in 2017, including all of the Named
Executive Officers.

compensation. Anyone who owns shares of 3M common
stock can vote at the company’s annual stockholder
meeting, using a proxy. The proxy can be submitted byphone, by mail, or on the internet. The Proxy statementthat accompanies the actual proxy itself describes
the matters that are to be voted on, and provides
information on those matters so stockholders can makean informed decision. Results of votes are filed with
the Securities and Exchange Commission within fourbusiness days of the annual meeting, and are madeavailable on the 3M website.

Director Compensation•

A significant portion of the total compensation
should be paid in common stock to aligndirectors’ interests with the long-term interestsof stockholders•

The structure of the compensation should be
simple and transparent

Periodically, at the request of the Committee, Frederic
W. Cook & Co., Inc. conducts a survey of director
compensation at other large U.S. companies andprovides expert advisory support to the Committee on
the compensation of non-employee directors.

G4

Leadership Behaviors•

Compensation for 3M employees is not just tied to what
they do, but how they do it. This holds true for generalleadership responsibilities as well as performance
related to Sustainability issues. Leadership Behaviors
establish what is expected, and also how everyone candemonstrate and meet those expectations through theiractions and interactions.

The Nominating and Governance Committee
periodically receives reports on the status of
51-52
Board compensation in relation to other large
U.S. companies and is responsible for recommending to
the Board changes in compensation for non-employee
directors. In developing its recommendations, theCommittee is guided by the following goals:

SD

Compensation should fairly pay directors for workrequired in a company of 3M’s size and scope

3M’s 2018 Notice of Annual Meeting and Proxy
Statement provides additional detail on executive#improvinglives | 115

How We Work | Compensation

Six behaviors of effective leaders at 3M:
Play to win

Prioritize and execute

Foster collaborationand teamwork

Develop others
and self

Innovate

Act with integrity
and transparency

3M innovation takes a lot of people who are constantly
searching for new and better ways to make innovation
happen. People who challenge the status quo andwelcome change. And people who know how toleverage internal and external networks to create
win-win solutions.
To make sure we are constantly innovating, our leaders
must create an environment that allows and challenges
people to seek out new ideas and process improvementsthat drive success. Our “Innovate” Leadership
Behavior includes an expectation to support 3M’s
Sustainability goals.
Ratings of achievement of measurable targets impact
employees who are eligible for variable compensation.
Ratings of Leadership Behaviors impact long-term
variable compensation for those employees insenior positions.

Employee Compensation
All employees have the opportunity to grow throughchallenging work and rewarded on their efforts.
Our employee performance review process directly
connects to an individual’s compensation. The intent of
the process is to align individual goals and performancewith business objectives and outcomes, creating a
win-win situation for the employee and the company. In
addition, the process helps identify and develop leaders
to meet 3M’s ongoing talent needs.
Additional information on 3M’s employee development
and compensation can be found in our Employee
Programs section.

116 | 3M 2018 Sustainability Report

Our Actions
Compared to peers, 3M has an industry-leading formulafor compensation that helps provide equitable pay
for all employees. We compare 3M salary data andcompensation practice annually, and make both market
and competitive adjustments as needed, to assure ourpay levels at each grade level are competitive. If they
are not, we adjust accordingly, by market, to keep
pace with other global enterprises. Ultimately, we
factor in performance accelerators based on an annual
performance review and the Leadership Behaviors
discussed above under Our Commitment.
Our performance compensation includes short-term
variable pay and long-term equity and cash incentives
for some employee categories. Multiple employees fallwithin each employee category, and their respective
performance-related compensation may vary.
At 3M, the proportion of total rewards aligned withvariable (incentive) pay increases with job level and isreflective of the job level’s influence on both short- andlong-term results. Eligibility for Annual Incentive Plan
(AIP) and Long Term Incentive Plan (LTIP) are basedon job level, considering both the job level’s ability to
influence the incentive period being measured and market
competitiveness for these types of compensation.
Additional information on 3M Total Rewards can befound in our Employee Program section.

Global Market Pricing Project
According to company surveys, 66 percent of global 3M
employees believe they are being paid competitively.
To drive consistency and transparency in compensation
practices across all regions, we implemented the global
market pricing project work completed in 2016. Using
common job descriptions and grades throughout theworld, this project used data from three global surveys
to benchmark pay levels, map job grades, and create aconsistent short-term incentive plan, which helps takemanager discretion out of compensation.

Employee Stock Purchase Plan

Short-term Incentive Plan

The 3M General Employee Stock Purchase Plan continues
to be seen as a model among companies worldwide. The
company offers a 15 percent discount on stock purchases
to eligible employees worldwide through convenient
payroll deductions. In 2017, participation among
employees was 33 percent worldwide.

3M has the same annual incentive plan (AIP) designfor everyone, from the Chief Executive Officer all theway down through the organization – the same payout
curves, thresholds, maximums, metrics, and metricweightings. By direction from the Compensation
Committee of the Board of Directors and our continuous
improvement efforts, we are evaluating ways tomaintain better competitiveness and alignment with ourcompetitors.

New Self-Service HR Platform
In 2017, 3M moved to a new global human resources
software platform. This easy-to-use, self-service
platform enables managers to make better and faster
decisions using real-time business insights. For bothmanagers and employees, the platform provides moretransparency, efficiency, and accuracy regarding
compensation practices.

Looking forward…
HR Manager Sessions
Following up on similar events in 2016, a series of virtual
HR manager sessions will be held worldwide in 2018
to provide managers and supervisors with a refreshedunderstanding of 3M’s approach to competitive pay,
pay-for-performance, Chief Executive Officer pay ratio,
and to help them communicate to employees where
they stand in the pay range for a given grade comparedto peers and employees at other companies. The aim
is to increase transparency about each employee’s
compensation and the processes 3M uses to make suretheir pay is competitive.

Additional information on the project launch can befound in Looking forward.

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How We Work | Employee Programs

Employee
Programs
When people grow,our company grows.
Our Commitment
Our science not only impacts our customers around theworld, it makes a difference in the way we work.
Engaged employees, we believe, are more satisfied with
their work, tend to stay longer, and are more productive
and committed. So we foster and reinforce behaviors
that support engagement on many levels, including
networking, collaboration, and diversity and inclusion.
We focus on the quality and the impact of professional
development and career growth.
To bring our corporate Vision to life, we have six
strategies that are engrained across our businesses:•

Expand relevance to our customers and ourpresence in the marketplace•

Gain profitable market share and accelerate market
penetration everywhere•

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

118 | 3M 2018 Sustainability Report•

Intensify capabilities to achieve regional
self-sufficiency•

Build high-performing and diverse global talent•

Drive consistently superior levels of operational
excellence

To learn more, visit Our Corporate Values and Vision andDiversity and Inclusion sections.
If you want to develop as an individual, there are manythings that make 3M the place to be.
Our company touches nearly every industry in every
market around the world. If you work at 3M, youhave a range of development opportunities few othercompanies can offer. Our people can live in different
countries, learn different cultures, and develop different
skills across different industries.
It’s possible for someone to go from a lab, to marketing,to sales, to business development, and all the way up to
the C-suite. 3M is so diverse that people can reinvent
themselves and their career all within one company.
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How We Work | Employee Programs

It is also a priority for our executives – from the Chief
Executive Officer on down – to develop the company’s
future leaders.

Our job is to lead the development of
our leaders.
Inge G. Thulin
Chairman of the Board,
President and Chief Executive Officer, 3M

Pay

Medical Plan Enhancements

We offer a competitive base pay and, depending on
position, variable incentive pay linked to company andindividual performance.

In 2016, Omada became available for 3M employees
and adult dependents enrolled in the 3M Medical Plan.
Omada is a program aimed at reducing the risk ofdeveloping Type 2 diabetes and heart disease throughweight loss, improved diet, and exercise. Since theprogram was launched, over 4,800 members have losta collective 32,000 pounds, significantly reducing theirrisk of developing chronic disease.

While base pay applies to all employees, variable pay isoffered to eligible employees and may include annual
incentives, sales incentives, or other incentives. See theCompensation section for more details.

Benefits
2025 Goal: 100 percent participation in employee
development programs to advance individual andorganizational capabilities.

Our employees are encouraged and supported topursue areas of interest and develop career paths andopportunities aligned with those interests.

Our Actions
Our most valuable resource is our people, and we invest
in their success. We offer a wide range of benefits anddiscounts designed to help our people live their best. We
also provide tools, opportunities, and support for people
who want to grow their careers.

3M Total Rewards
3M Total Rewards includes a range ofplans and programs that are intended
32, 10
to attract, retain, and motivate thehigh-performing employees we depend on for growthand success. 3M regularly benchmarks its compensation
and benefits with those of companies that arecomparable in size and scope to assure that we remain
highly competitive.
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3M Total Rewards break down into three areas: pay,
benefits, and life at 3M.

120 | 3M 2018 Sustainability Report

Medical, dental, and vision plan options,savings and retirement plans, a 3M employee
3stock purchase plan and many other resources
can enhance a 3M employee’s life, both physicallyand financially.
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All regular full-time employees in the U.S. 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.
As we reported in 2017, we updated our parental leave
policy for U.S. employees in 2016 to enable each parent
to play an active role in nurturing his or her family,
regardless of gender or sexual orientation. The policy
offers the flexibility to make it work for both one’s job
and family. Mothers and fathers of newborn or newly
adopted children are entitled to up to 20 weeks of
Parental Leave – 10 weeks of paid leave (four weeks at
100 percent and six weeks at 50 percent) and 10 weeks
of unpaid leave. Working part-time is also an option
using one of the 3M standard part-time schedules. While
there can be different definitions for “parental leave”,
in the U.S. during 2017 a total of 1,077 employees took
advantage of all or part of this time offered to them withthis new benefit.
Further information on 3M’s wide range of benefits anddiscounts designed to help employees live their best canbe found at: Benefits.

Livongo, a diabetes management program for
employees and adult dependents with Type 1 or Type 2
diabetes, was introduced in 2017. This program includes
an unlimited supply of test strips at no cost, a blood
glucose monitor that also provides tips and alerts, andthe support of one-on-one coaching. By the end of 2017,nearly 800 employees and dependents enrolled in the
program.
Best Doctors was also introduced in 2017 and provides
an expert medical review and second opinion service
to help employees and dependents receive the rightdiagnosis and treatment plan.
Telehealth services have been available to all 3M
Medical Plan members for the past several years.
Telehealth allows employees and their dependents toreceive same-day, online, or telephone-based medicalcare for dozens of common health conditions.

Life at 3M
3M employees can grow through challenging workby leading important projects, working with diverse,
talented people and finding endless opportunities todevelop skills – while enjoying access to many perks,
programs, and resources.

3M Healthy Living Program
The 3M Healthy Living Program offers a variety ofresources, rewards, and incentives to help employees
live a more active and healthy life. A sampling ofopportunities available includes:•

3M Medical Plan premium discount for being
tobacco-free and taking steps to improve health•On-site fitness centers at select locations•

Fitness center discounts•

Weight management programs
and reimbursement•

Confidential Employee Assistance Program (EAP)•

Tobacco cessation offerings and incentive•

Resources to help manage medical care and makeinformed health care choices•

Consultation and referral around child and eldercare, as well as financial and legal services•

Parenting groups, scholarship programs, andpersonal growth resources•

Access to on-site health and personal services in
our headquarters location, including an on-site
pharmacy, medical center, vision center, and afull-time dietitian•

3M Club that provides discount tickets andan avenue to share hobbies and interests withother employees

Additional resources and opportunities offered:•

Tuition reimbursement for employees andscholarships for eligible dependents•

Adoption assistance•Flexible work arrangements•

Diverse career and development opportunities•

Group auto and home insurance•

Employee store to purchase 3M products online orat many 3M locations•

Support for community involvement: Matching
Gifts, Volunteer Match, 3Mgives (our community
giving program)

Education and Career Growth
Today’s business environment demands that we become
faster and more flexible in anticipating and exceeding
the needs of our customers, shareholders, andemployees. Creating a high-performance culture built on
continuous learning helps 3M achieve business growth
for the company and professional growth for employees.

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How We Work | Employee Programs

Investing in our People
The growth of our people is essential to thegrowth of our business. Although we achieved
9-11
over 25 hours per year of training anddevelopment per full-time equivalent (FTE) employee,
those hours are only one part of the picture. We leverage
a 70-20-10 development model which indicates thatover the course of a career, 70 percent of learning isdone on the job, 20 percent comes through other
employees, and only 10 percent of meaningful
development is reached through formal training.
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Our learning orientation and philosophy focuses on
experiential learning and skill building rather thanclassroom-style training. While we can estimate that
our training numbers are close to averages foundin other large manufacturing companies, measures
such as training hours or costs per employee are notleading human capital performance indicators for 3M.
We believe indicators that align people’s results tothe success of the company are direct performanceindicators of development programs. Leadership andemployee engagement, employee retention rates, brandrecognition, acquisition integration milestones, and Lean
Six Sigma project value are a few examples of indicatorsthat contribute to 3M's recognition as an industry andglobal leader.
3M has prioritized learning and career development
opportunities not only for leaders, but for all
employees. Further, 3M has separate processes for
employee performance and career development.
This permits employees the freedom to create
meaningful development plans without performance orcompensation implications.

Employee Development
Effective employee development programs are crucial toenable our goal of 100 percent of employees engaging
in development activities. With the global launch of our
new employee learning platform, Develop U, employees
are easily able to access development resources tosupport their career aspirations and advance strategic
capabilities within 3M. Develop U provides employeeswith a personalized experience by recommending
relevant content based on their role within theorganization. Additionally, content is organized andaligned to directly support 3M’s organizational priorities:
122 | 3M 2018 Sustainability Report

including Leadership Behaviors, 3M-defined functional
competencies, Lean Six Sigma (LSS), Sustainability, andsupervisory content. Develop U provides access to tensof-thousands of unique, just-in-time learning resourcesin over 15 languages; allowing 3M’s global workforce toengage in employee development.
Leveraging a technology platform launched in early
2016, employees create or update development
plans that include activities to elevate individual skills
and further career development. Employees can use
additional skill-mapping tools in collaboration with theirsupervisors to identify long-term desired goals anddefine actions needed to help reach those goals.
3M has recently completed a process to define andcommunicate global functional competency models.
These models clarify expectations regarding theknowledge, skills, and abilities to be developed overa career within a specific function. Based on sharedexpectations, career paths are aligned with investment in
training and development resources. Each function witha completed competency model leverages 3M’s newlearning platform to direct employees to relevant training
opportunities. Functions also provide development
suggestions that can grow the competency throughon-the-job activities or social learning through a coachor mentor. Currently, the competency-based resources
cover approximately 95 percent of the non-production
professional employee population.

Performance Assessment
and Contribution
Throughout the year, employees meet with theirsupervisor to evaluate progress on current goals
11
and adjust them as needed to align to any
changes in priorities.
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LA

Our process includes two components: measurable
targets agreed upon by each employee and his/hersupervisor; and Leadership Behaviors ratings, whichreflect the extent to which the employee engaged incore behaviors that allow 3M to execute our strategies
and meet our objectives.
The performance assessment process helps hold eachof our employees accountable for their contribution andeveryday behaviors. The process aligns personal goals
with organizational goals— we strive to achieve ourgoals in ways that support and strengthen our culture

and achieve sustainable growth. In addition, 3M has long
prioritized taking a well-rounded view of an individual’s
performance, assuring that employees are treated in afair and consistent manner:•

Performance goals, linked to higher-level
organizational goals, are set jointly between theindividual and his or her leader•

Tools provided to leaders facilitate conversations
between leaders and employees to assure
mutual understanding of expectations anddesired behaviors•

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•

Management Team Reviews function not only
to provide comprehensive information about anemployee, but also to further the goal that rating
considerations will be consistent for employees
within an organization

Each year, all 3M non-production employees identify
their contributions in meeting their specified goals
through an employee performance process. 3M strives
to have 100 percent of non-production employees
complete the entire performance review process. In
2017, all eligible employees were rated through thecalibration meetings, and these employees and theirsupervisors received tasks to complete the year-end
process in the performance system.

Employee engagement andcontinuing improvement of
the workplace
For more than 50 years, 3M has been conducting
surveys to solicit employee observations, attitudes,
and opinions. Our Standard Opinion Survey program
covers the entire globe and provides specific andrelevant feedback to major units within the company(e.g., divisions, locations, countries). All employees havethe opportunity to complete the 3M Standard Opinion
Survey and our average response rates are typically
about 85 percent.

The Standard Opinion Survey program enables us toregularly assess the state of employee engagement andother workplace factors critical to high performance andbeing a great place to work. We provide in-depth reports
for the leaders of the business units surveyed and assure
their leaders and top 3M leadership are aware of thesesurvey results. This is a cycle of continuous improvement
for us, year after year.
Each unit that surveys must review their results, present
them to their employees, and execute an action plan
to address the issues that arise from the results. We
built supports into our process that make it easier tobring about successful change through action planning– such as accountability checks, and specific tools toaction results. We identified key drivers of employee
engagement and developed and deployed learning
opportunities for leaders (e.g., multiple on-demand
instructional videos on engagement). We continuallyassess survey content and update as needed to assurealignment with company strategy and major initiatives.
Thus our surveys support strategy and businessobjectives directed at supporting sustainable corporate
success through our employees’ behavior on the job.

Employee Turnover
Our global voluntary turnover rate continues tobe under 6 percent, a source of great pride for
1, 4
our company. Compared to most companies,
3M employees love working here, and they rarely leave
the company. We calculate voluntary turnoverseparately from retirements, company initiated turnover,and reductions in force. Voluntary employee turnover isdefined as turnover due to employee initiated reasons(e.g., returning to school, going to another job in adifferent company).
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Total turnover includes voluntary turnover and allother forms of turnover (e.g., termination as a resultof restructuring, termination for poor performance,
retirements). Our total employee turnover rate is anannualized rate that measures employees who 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.

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How We Work | Employee Programs

3M follows all applicable local laws and regulations
regarding notice periods in the event of business
operations changes.
3M’s Human Resources (HR) department is unique inthat we have one global system to track HR information.
At every 3M location around the globe, we haveinstant access to this information – using our global
reporting tool.

New Employee Onboarding
3M invests in onboarding and developing new
employees so that they have the tools, resources, andnetworks they need to succeed. Our onboarding process
begins at the time a candidate accepts a job offer andcontinues through the first year of employment.
A consistent, comprehensive onboarding platform
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 andto make meaningful contributions from the start.

Accelerated Leadership
Development
Leadership development is a competitive advantage
at 3M. To maintain this competitive advantage, we areleveraging new technologies and delivery methods,
thereby ensuring impact, consistency, and global
inclusivity.
Through various stages in a leader’s career journey, there
are many development opportunities and programs
available, across every geographic region and 3M
business. Most programs are available at no additional
cost to employees and include a range of online and selfpaced offerings that cover core skill development aligned
to the 3M Leadership Behaviors, ranging from personal
effectiveness to financial acumen. These programs
are also focused on the future – embedding inclusive
leadership strategies, development through corporatesocial responsibility, and mentoring opportunities.
In 2017, 3M was honored to receive two LEAD Awards
hosted by HR.com – for global leadership programs andfor experienced senior leader programs.
124 | 3M 2018 Sustainability Report

Global Executive andLeadership Development
3M Leadership Way
The 3M Leadership Way is a suite of high potential
leadership development journeys within the 3M Global
Academy of Innovative Development. It brings one
consistent approach to how 3M develops leaders acrossall geographic areas, business groups, and functions.
Each program is an integration of customer-focused,
results-driven, and experience-based learning that takes
leaders outside the classroom walls to sharpen theirskills with leadership challenges for our customers andin our global communities. Common threads run throughthe development journeys, and includes core content(i.e., 3M Playbook including our Vision) tailored to eachlevel of leadership.
Our 3M Leadership Way promise is to develop our top
talent to unleash their full potential, and add value to thecompany, our customers, and the world we live in.
3M Leadership Way Journeys:
Catalyst
Catalyst is a 12-month journey focused on developing
the company’s top 250 leaders. These individuals aregame changers with aspiration, potential, performance,
and with a pace even beyond their high potential peers
to make a step change impact for 3M and the world welive in.
Amplify
Amplify is a nine-month journey for leaders withpotential to reach the director level. Similar to theCatalyst journey, Amplify is scaled to the leadershipchallenges faced by future directors. These individuals
already lead teams and organizations across every partof 3M.
IgniteIgnite is a six-month journey for leaders with potential
to reach senior manager level. These individuals aretransitioning to lead teams and development is focusedon critical challenges such as vertical and horizontal
management savvy and building and leading highperforming teams.

Spark
Launched for the first time in 2017, Spark is a yearlong
development journey for individual contributors andfrontline leaders with potential to reach manager level.
For the first time, 3M has leveraged the power oftechnology to offer leadership development and bring
together (virtually) more than 3,700 leaders from aroundthe world under one journey.

Development for People Leaders
In 2017, 3M launched a refreshed suite of development
offerings for People Leaders. With focus on the criticalskills that leaders need to be successful in managing
others, the Essentials for People Leaders program
emerged as a multi-module program with flexibility to
be delivered as face-to-face classroom training or as
online, virtual training. This flexible delivery format is key
to scaling a consistent development experience for all
leaders of 3M while still allowing for needed localization
to fit the needs of local people leaders.
In addition, new development channels were launched in
Develop U with additional content for aspiring, new, andexperienced People Leaders. Here, leaders can access,at no-cost, curated content including:•Transition toolkits•

Annual performance and development timelines
and support•

Self-paced eLearning and videos available in up to
14 languages

Leadership Coaching
3M is building a stronger coaching and development
culture. As a new opportunity for our leaders, 3M has
invested in an internal team of certified Leadership
Coaches to support and accelerate the developmentof leaders throughout the world. Starting in 2017, thesecoaches worked 1:1 with 3M leaders over the course of
three-month engagements to focus on key development
goals. Leadership Coaching unleashes leaders’ fullpotential, empowering them to positively impact theirteam, organization, and ultimately, grow the business.
More than 2,000 leaders have already been through thiscoaching skill-building program that allows leaders tolearn and apply a simple coaching framework.

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: Develop U, our employee
learning platform, allows 3Mer’s access to development
resources to support their career aspirations andadvance strategic capabilities within 3M; additional
information included above under Employee
Development. In addition, our Corporate Learning
System continues to support employees to enroll in,deliver, track, and report on learning activities andhas served the learning needs of 3M business units,
locations, and learning organizations globally.
Intranet Knowledge Platforms Databases: 3M’s intranetsite 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, andprocesses 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,
3M Particles.
Best Practice Descriptions/Processes: As a diverse
technical company, 3M shares best practices several
ways. Two of the most widely used internal mechanisms
are the 3M Tech Forum and the 3M Engineering andManufacturing Technology Organization. These twoorganizations provide an extensive network of expertisethrough specialized chapters focused on 3M’s coretechnologies and other emerging markets.
Company Education: In addition to a variety of generalcourses, webinars, etc., 3M offers specialized extended
courses to increase skills leadership coaching.
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 their#improvinglives | 125

How We Work | Employee Programs

working time on their own projects and sharing thoseideas with colleagues.

Our Footprint
The employee metrics in the charts arereflective of employee headcount as of
9-10
1, 12
December 31, 2017 (total number of
3M full-time and part-time employees) not 3M full-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.
G4

Employee Awards
and Recognition
3M sponsors many corporate award programs to honor
individuals and teams that make significant contributions
to the company. In addition, many divisions also havetheir own specific ways of recognizing and rewarding
people. Across 3M, management can choose from avariety of monetary and nonmonetary awards to show
appreciation for exceptional contributions. Examples ofcorporate awards include:•Awards for specific professionals, such as the
Global Marketing Excellence Award and the Circleof Technical Excellence and Innovation Award•

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

Awards focused on employees who improve safetyor pollution prevention•

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

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3M Global Females in Management
Percentage of Total
30
20
10

Looking forward…
Work will continue toward our 2025 goal of 100 percent
employee participation in development programs, bycontinuing to leverage the transformative power oftechnology. This will enable us to increase the reach, andspeed, of development and transcend the uncertainty
surrounding our global landscape.

0
2013

2014

2015

2016

2017

3M Global Employees by Region
Full and Part-Time, Total

100,000
90,00080,00070,00060,000Global

50,00040,000Asia Pacific

30,000

Canada20,000Europe/Middle East/
Africa10,000Latin America

0

United States

2013

126 | 3M 2018 Sustainability Report

2014

2015

2016

2017

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How We Work | Employee Programs
3M Global Female Employees by Region
3M
Global Female
Percentage
of TotalEmployees
Employees by Region
Percentage of Total Employees

3M Global New Employee Hires by Region
3M
TotalGlobal New Employee Hires by Region
Total

50
50

16,00016,000GlobalGlobal40
40Asia PacificAsia Pacific3030CanadaCanada20
20

Europe/Middle East/
Europe/Africa East/
MiddleAfrica101000Latin America
Latin America

2013
2012

2014
2013

2015
2014

2016
2015

2017
2016

United States
United States

14,00014,00012,00012,00010,00010,000GlobalGlobal

8,000
8,000

Asia PacificAsia Pacific

6,000
6,000

CanadaCanada

4,000
4,000

3M Regional and Global Employee Age Distribution
3M
and Global Employee Age Distribution
2017Regional
Percentage
2017 Percentage

Europe/Europe/Middle East/
MiddleAfrica East/
Africa

2,000
2,000

100
100

0
0

90
90

Latin America
Latin America

2013
2013

2014
2014

80
80

3M Global Female Hires by Region
Percentage
3M
Global Femaleof TotalHires
Hiresby Region
Percentage of Total Hires

70
70

60
60

60
60

2016
2016

2017
2017

50
50

50
50
40
40
30
30
20
20
10
10
0
0

2015
2015

Asia
Asia
Pacific
Pacific

CanadaCanada128 | 3M 2018 Sustainability Report

Europe/Europe/MiddleEast/
MiddleEast/
AfricaAfricaLatin
Latin
America
America

UnitedUnitedStatesStatesGlobalGlobalGeneration Z(>1994)Generation
Z(>1994)40
40

Generation Y(1981-1994)
Generation Y(1981-1994)

30
30

Generation X(1961-1981) X
Generation(1961-1981)

20
20

Baby Boomers(1943-1960)
Baby
Boomers(1943-1960)

10
10
0
0

United States
United States

GlobalGlobalAsia PacificAsia PacificCanadaCanadaEurope/Middle East/
Europe/AfricaMiddle East/
AfricaLatin America
Latin America

2013
2013

2014
2014

2015
2015

2015
2015

2017
2017

United States
United States#improvinglives | 129

How We Work | Health and Safety

Healthand Safety
Since 2006, worldwide lost time rates havedecreased 42 percent for 3M employees.
Our Commitment
As a company that makes a vast array of
products designed to protect workers, 3M is
10
front and center in the global effort to bringnew science and innovation to workplace safety. At thesame time, as an enterprise with 91,500 employees
working around the world, we are always taking steps tofurther advance the safety of our employees.
G4SD

Employee Health and Safety
The 3M Safety and Health Policy applies to 3M
operations everywhere, including new acquisitions.
Hazards in 3M's workplaces must be well understoodand effectively managed to protect 3M employees,
visitors, locations, and surrounding communities.
In addition, in the spirit of continuous improvement,much is being done to evaluate opportunities to raise

130 | 3M 2018 Sustainability Report

our safety standards. We visit locations, perform auditsof record-keeping practices, and review incident
data, the quality of our investigations and corrective
actions taken.
To assure consistent reporting and metrics globally,
3M, like many multinational companies, follows the U.S.
Occupational Safety and Health Administration (OSHA)
recordkeeping rules and formulas to record and measure
injury and illness rates worldwide. At all facilities within
3M’s operational control, 3M employees and contingent
employees are covered by our injury and illness
recordkeeping rules.

Contractor and Visitor Healthand Safety
3M requires all visitors, vendors, contingent workers,
and contract workers at 3M locations to follow
all applicable 3M workplace safety and healthrequirements. For example, contractors must completea pre-qualification process before they may perform
work on 3M premises. That process includes, among
other things, reviewing the contractor’s employee injury/
illness rates, Experience Modification Rates (EMR),
employee training records, and safety committee
activities. Pre-construction safety reviews also are
conducted to address potential hazards and controls
related to the work. Contractor performance evaluations
also include safety reviews.
Each 3M location has a Contract Coordinator who is themain 3M contact for working with contractors on safetyissues. The Contract Coordinator is empowered toparticipate in pre-bid meetings and pre-qualifications forcontractors. He or she is on-site and therefore available
for contractor meetings and safety reviews as necessary
and appropriate.
Contractors are asked to submit notification to 3M
of worker hours and any injuries occurring while
performing work in accordance with a 3M contract. Any
contractor incidents are reported in the 3M Worldwide
Incident Management System (WIMS), including injuries
and contractor worker hours. In 2017, a contractor
fatality occurred as a result of injuries sustained during
an arc flash explosion. Additional preventive measures
were implemented to further strengthen the safety ofthe operation.

Process Hazard Management
3M is committed to rigorously managing the risks
associated with hazardous processes, such as those withpotential to result in catastrophic fires, explosions, andsudden release of toxic materials. We use a Hazardous
Process Evaluation Tool (HazPET) to categorize
hazardous processes. Process hazard analyses (PHAs)
are used to assess the effectiveness of existing
safeguards. Layers of Protection Analysis (LOPA) is also
used in some instances to evaluate safety critical devices
and systems, providing more attention to independent
protection layers. In 2018, facility sitting assessments
will help us identify and mitigate “maximum credible
event” scenarios that could impact workers at somefacilities, and a global initiative will build on 3M’s existingguidance to our facilities around effectively managing
potential combustible dust hazards.

#improvinglives | 131

How We Work | Health and Safety

Our Actions
G4

LA

6

Global Safety and
Health Plan Tool

The 3M Global Safety and Health Plan (GSHP), whichis part of 3M's Environmental, Health, and Safety (EHS)
management system, is required to be implemented
by global 3M locations. This approach utilizes a welldeveloped self-assessment process that is categorized
into multiple elements addressing various areas andSignificant Injury/Illness
or Fatality Assessments
and Rates
At the end of 2017, over 78,000 risk assessments had
been completed which resulted in the identification andreduction of risk associated with more than 23,000
higher hazard activities. This development has beenaccompanied by a steady decrease in severe incidents
over the past four years.
Since 2012, the SIF (Significant Injury/Illness orFatality) rate at 3M has resulted in a net reduction of
37.2 percent. This represents fewer significant injury/
illness incidents per year. The following chart shows
the worldwide SIF rate trend for all 3M employees,
contingent workers, and contractor workers combined.

standards related to safety and health. 3M utilizes avariety of tools to manage risks from hazards in theworkplace. We’ve used specialized tools successfully
for a number of years in the areas of process safety,
industrial hygiene, and ergonomics. Each of these
disciplines uses a risk management approach tocategorize hazard levels and define appropriate levelsof control.
As part of our continuous improvement efforts, in 2017,
some GSHP elements were reviewed and updated
including new site self-assessment questions.

3M Regional and Global Lost Time Incident Rate
Per 100 3M Employees (200,000 Work Hours)

0.80Worldwide

0.70
Asia Pacific

0.60
0.50

Canada0.40

In 2013, 3M instituted a new approach to dealing withhazards that have the potential to result in fatalities orserious injuries. In 2014, we implemented metrics tomeasure our progress toward a five-year goal of 100
percent conformance to the following six standards for
managing risk in certain high-hazard activities:

0.30

Europe/Middle East/
Africa0.20

Latin America

0.10
United States

0.00
2013

•

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

96•

Process hazard analysis

94

2014

2015

2016

2017

Global Health and Safety Plan High Hazard Standards By Region2017 Percentage
100
98

92
90

3M Global Serious Injury/Illness Incident (SIF) Rate
Total 3M, Contingent, and Contractor Employees

88
86

0.20

84

0.18
0.16

82

0.14

80

0.12
0.10
0.08
0.06
0.04
0.02
0
2013

2014

132 | 3M 2018 Sustainability Report

2015

2016

Safety and
Health Hazard
Recognition
and Risk
Assessment

Incident andPotential
HazardReporting,
RecordKeeping,
Investigation
and Follow-up

PoweredIndustrial
VehiclesMachineGuarding

WorldwideWork atHeightAsia Pacific

Europe/Middle East/Africa

Process Hazard
Analysis

CanadaLatin America

United States2017#improvinglives | 133

How We Work | Health and Safety

Static Discharge
Improvement Plan
With continuing growth in electronic devices andtechnology, static discharge is a potential hazard at
more than 80 percent of 3M facilities. At each location
where there is potential for static discharge incidents,a competent, trained coordinator is required. In 2017,
we continued our static discharge control efforts
through improved procedures, instructions, andrelated documents, as well as training for operators,
management, environmental, health, and safety (EHS)
personnel, and engineers who are responsible for design
and mitigation efforts. In addition, the Electrical andManagement of Change (MOC) sections of the Global
Safety and Health Plan Standard have been updated toinclude new audit questions and explanations. At the endof 2017, 98 percent of applicable locations had a fullycompetent, trained coordinator and were fully engaged
in a static discharge improvement plan.

Electrical Work Precautions
At 3M manufacturing locations, we use live electricalcurrent in a variety of different ways, including
electroplating, electrochemical processes, and creatingheat for furnaces using raw current. The company
requires each location to implement an Electrical Safety
Program to assure equipment is designed, installed,
used, and maintained to minimize electrical hazards
in the workplace. 3M requires that work conducted
on or near energized electrical parts or circuits mustbe performed by qualified individuals. In addition, thecompany mandates that all workers whose jobs may
expose them to the risk of electrical shock are trained inelectrical safety. In 2017, to raise the level of protection
for employees working around these processes, wetook proactive steps to define the processes and, whereappropriate, implement stronger safety controls.

globally to assist ergonomic subject matter experts. Thisnew tool is being used to better understand ergonomic
risks and define equipment or process changes that
could reduce risks. 3M also defined a new system toperform ergonomic assessments for potentially high-risk
work tasks. That new system is planned for phased
global implementation in 2018.
Online ergonomic training is also available 24/7 to any
employee who wants to learn more and has access to
the 3M Intranet. All of these efforts have paid off inreduced numbers of ergonomic recordable injury cases;
see Recordable Incident Rate chart.

Chemical and Noise
Exposure Risk Management
To accurately assess exposure management programs
and activities, 3M uses the comprehensive approach
outlined by the American Industrial Hygiene Association(AIHA). In the past decade, over 95 percent of all
chemical agents and noise baseline exposure risk
assessments have been completed for all jobs,
including annual air and noise sampling plans, exposure
assessment validation plans, hearing conservation
programs, and respirator and personal protective
equipment programs. The results of these assessments
help us determine whether any changes in exposure
management programs are warranted.
These concerted risk assessment and management
efforts are paying off. One example: the 3M facility inAlexandria, Minnesota.
Over the past six years, 3M Alexandria has taken on
the challenge to reduce noise and eliminate hearing
conservation areas in its facility, as prescribed by

OSHA. Noise exposures were so successfully reduced(12 - 14 dBA across 24 different areas and departments)that in 2015, 22 of the 24 areas in hearing conservation
had been removed, and 199 of 203 employees wereno longer required to be included in the 3M Alexandria
Hearing Conservation Program. In 2016, 3M Alexandria
initiatives were recognized for statistically driven
noise exposure assessments, cost-effective noise
reduction efforts, documentation of results, and theimplementation of Buy-Quiet principles, when thefacility was awarded the NHCA/NIOSH Safe-InSound™ Award by the National Hearing Conservation
Association (NHCA) and the National Institute for
Occupational Safety & Health (NIOSH).

During the month of September 2017, the Alexandria
location achieved a significant milestone by removing
the last of the 24 targeted areas successfully leaving thefacility at 100 percent hearing conservation free.
Moving forward, 3M Alexandria will continue to evaluatenoise on new and existing processes, and implement
Buy-Quiet principles to assure that noise exposuresremain reduced and controlled. While the extent of anindividual facility’s risk or opportunities may differ, 3M
Alexandria’s success story demonstrates that significant
advances in noise control can be achievable andeconomical in both short- and long-term.

3M Global Recordable Incident Rate Category
Per 100 3M Employees (200,000 Work Hours)

0.60

0.50

0.40

0.30

0.20

0.10

0.00

Ergonomics Risk Management

2013

Significant changes have been made to the Ergonomic
Risk Reduction Process (ERRP) at 3M, to better
understand ergonomic related risks and identify
sustainable controls for jobs across all operations. A
more efficient and effective ergonomic risk assessment
analytical tool has been developed and deployed

2014

2015

2016

2017

Contact with
Object/Equipment

Exposure,
ChemicalPhysical Agent
Exposure

Ergonomics

Miscellaneous

Slip, Trip, Fall

Exposure,
Biological Agent

Noise Exposure

Transportation
Accident

3M Alexandria, Minnesota
134 | 3M 2018 Sustainability Report#improvinglives | 135

How We Work | Health and Safety

use nonionizing radiation sources evaluate facility
performance around managing hazards during routine
use and maintenance of radiation sources, security ofradiation sources, training of personnel, and regulatorycompliance.

3M Regional and Global Recordable Incident Rate
Per 100 3M Employees (200,000 Work Hours)

2.50

Details of 3M’s Healthy Living Program and other healthand safety employee programs can be found in our
Employee Program section.

2.00

Global EHS Team

1.50

3M’s global EHS team continues to evolve to its
current operational state which we believe sets
5
us apart from our peers. Comprised ofbusiness-level EHS committee members, regional EHS
managers, and Corporate subject matter experts, thiscommittee will work with EHS facility staff globally toaddress and replicate best practices, solve problems anddrive worthy EHS initiatives to operational-level.
G4

LA

1.00

0.50

0.00
2013

2014
Worldwide

2015
Asia Pacific

Latin America

Canada2016

2017

Europe/Middle East/Africa

In 2017, 100 percent of 3M manufacturing locations
worldwide had active employee safety and healthcommittees.

United States

Looking forward…
Global Safety Conference
3M reinforced its dedication to employee safety
by holding a Global Safety Conference in May,2017. Attended by nearly 200 3M health and safety
professionals from 14 countries representing all 3M
operational regions, this conference featured inspiring
keynote speakers Deborah Hersman, President andChief Executive Officer of the National Safety Council,
and Jim Spigener, Senior Vice President of Dekra Insight,
pioneers in behavior-based safety. Content for the main
conference was generally structured around managing
risks for process and personal safety, with a focus on
prevention of fatalities and severe incidents.

136 | 3M 2018 Sustainability Report

Additional Steps to Protect
Employees
3M’s Corporate Radiation Protection and Compliancegroup (CRPC) assures the safe, legal, and ethical useof sources of radiation. This includes uses of radiationin both manufacturing and research and development,
ionizing radiation sources such as radioactive materials
and x-ray emitting devices, and non-ionizing radiation
sources such as lasers, microwave and radiofrequency
radiation, magnetic fields, ultraviolet, infrared, andvisible light. CRPC provides hazard evaluations,
including radiation surveys and recommendations oncontrol measures, to assure that 3M employees are safe
and that radiation sources are used in full complianceof federal and state regulations. CRPC develops andprovides training for both radiation source users aswell as facility Radiation Safety Officers to help protect
3M employees, our customers, and the public. Annual
program audits for facilities that use ionizing radiation
sources and similar periodic audits for facilities that

Employees and those working on
3M’s behalf
An important initiative during 2018 will be to improveexisting behavioral safety processes, with the aim ofassuring that gains from these improved processes canbe sustained over time. Our strategy is to use the corecomponents of behavioral safety – namely, observations
and data collection – and integrate them into existing
Lean Six Sigma (LSS) and Risk Management processes
to further engage employees performing day-to-day
tasks where higher hazards are present. We see aunique opportunity to document and understand how
workplace decisions are being made by operations andmaintenance personnel when faced with circumstancesthat could place them at increased risk of an injury orillness.

Hearing Conservation
3M is participating in a global pilot program with theCouncil for Accreditation in Occupational Hearing
Conservation (CAOHC). Looking forward, we expect
to expand CAOHC certifications in Latin America,
Asia, and other areas where staff certification can help
facilities prevent or reduce the severity of noise-induced
hearing loss.
Learn more on CAOHC certifications: here.

Ergonomics
For ergonomics, a new global system for identifying
and addressing ergonomic risks is being developed ona new platform for global deployment in 2018. The new
system will allow anyone in the world to perform initialergonomic risk assessments through a computer or hand
held device.

Environmental, Health, and Safety
In 2018, we are also focusing on increased synergy
between Environmental, Health, and Safety, engineeringand supporting functions. One tactic for this will be an
Environmental, Health, and Safety Summit including
representatives from each of these functions. The
goals of the Summit will be to identify and create
opportunities to more efficiently and effectively
implement engineering controls, resulting in improved
and accelerated Environmental, Health, and Safety
program performance.

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How We Work | Environmental Management

Environmental
Management
3M has long recognized the necessity for
responsible environmental management andconservation of resources.

Our Commitment
SD

Chemical Waste Standard; Waste Management Program
Standard; Water Management Standard; and our Global
Climate Change Position Statement.

Since then, we have created supporting policies using aneeds-driven process. When we identify potential risks
to the environment, health, and safety of our employees,
products, and communities, we take steps to modify
processes and standards that address these risks.

3M's strategies for sustainable development encompass
the pursuit of customer satisfaction and commercial
success within a framework of environmental, social,and economic values. We are committed to complying
with all applicable environmental requirements
worldwide. Beyond compliance, the company
continues to make significant investments to reduce
the environmental footprint of our operations; and our
products with sustainable attributes help customers
reduce their environmental footprint and help tomeet their Sustainability goals. Always, 3M believes
environmental policy and regulations should be guided
by science-based decision making.

3M formalized its commitment to environmental
stewardship when the company’s Board of
14
Directors adopted the 3M Environmental Policy
in 1975. This policy established the framework for ourapproach to responsible environmental management andconservation of resources, emphasizing prevention ofpollution at the source.
G4

Our strategy and resulting actions are demonstrated
in the following policies, positions, and standards:
Acquisition, Divestures, and Mergers Standard;
Environmental Policy; Energy Policy; Greenhouse
Gas Management Operations Standard; Disposal of

138 | 3M 2018 Sustainability Report#improvinglives | 139

How We Work | Environmental Management

Our Actions
Setting and implementing global environmental
policies, management systems, and key
27
performance metrics enables 3M to continually
integrate and drive environmental stewardship into eachof the company’s five business groups globally, assuringconsistency and innovative environmental thinking. As
reflected by our environmental performance indicatorsand 2025 Sustainability Goals, environmental
stewardship is a core corporate commitment backed bydecades of proven performance.
G4

EN

Environmental IncidentManagement

Environmental Management
Implementation

Since 2010, all 3M locations globally are
required to internally report environmental
24, 29, 34
exceedances, spills, agency notices, and fines
through one dedicated system – 3M's Worldwide
Incident Management System (WIMS). This includes:

Implementation of our EMS continues to increase
throughout the world and has translated into reduced
costs through operating efficiency, improved
environmental compliance, reduced monitoring costs,
reduced energy and waste disposal costs, and increased
employee activity. Our EMS is also expanding our
Sustainability image around the globe, which has strong
financial benefits.

G4

EN

•

Exceedances: emissions or other environmental
parameters above permitted or allowable
regulatory levels•

Significant Spills: spills that are above a designatedrisk-level based on the more stringent of aregulatory requirement or an internal company set
volume and threshold

Management
3M’s Environmental Management System(EMS) framework provides structure and8consistency for overseeing daily activities, andputs the company in proactive, rather than reactive,mode regarding its environmental focus. We haveextensive global systems in place to identify, track, andmanage relevant information on corporate-wide
environmental management and performance. This
includes covering a full range of environmental
compliance and operational performance metrics
relevant to 3M operations, some of which are provided
in this report.
G4

SO

Information and performance data on a majority ofthese program elements are tracked and reported
through corporate electronic reporting systems.
Quarterly scorecards report data at the facility, division,business group, and corporate levels. Scorecards arereviewed by executive management for performance on
selected indicators, enabling 3M to monitor and identify
successes, risks, and opportunities for performance
improvements and footprint reductions worldwide.

140 | 3M 2018 Sustainability Report•

Agency Notices: notices received by 3M for alleged
deviations from an environmental regulatory or
permitting requirement•

Fines: compensation paid by 3M to address anadministrative fine or penalty imposed by anenvironmental regulatory agency

WIMS has led to continuous improvement related toincreased awareness of responsibilities, understandingof the holistic system, and more consistent reporting
requirements for 3M’s global operations.

Environmental Investments
In 2017, 3M expended about $33 million for
capital projects related to protecting the31
environment. This amount excludes
expenditures for remediation actions relating to existing
matters caused by past operations that do not contributeto current or future revenues, which are expensed.
Capital expenditures for environmental purposes haveincluded 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 upgradedin the normal course of business. Consistent with thecompany’s emphasis on environmental responsibility,
capital expenditures (other than for remediation
projects) for known projects are presently expected to
be about $66 million over the next two years for new or
expanded programs to build facilities or modify
manufacturing processes to minimize waste andreduce emissions.
G4EN

Our approach calls for each site to establish, implement,
and maintain documented environmental objectives
and targets. When establishing an EMS plan, each
3M location must address 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.
3M’s multifaceted strategy for implementing
environmental management systems and global auditingof environmental compliance for our operations is
key to understanding any potential gaps and gaining
resolution quickly. All manufacturing locations, andnew acquisitions based on their integration progress,
are required to complete a Global Environmental
Management Self-Assessment (GEMSA) at least
annually. In 2017, GEMSA updates consist of a detailed
evaluation of the location’s systems alignment forassuring environmental compliance and management
system performance.
GEMSA elements reflect procedures, systems, andprocesses that are comprehensive and mandatory tomaintain compliance with legal or other requirements.
Additional ISO 14001 elements and associated questions
are provided to enable sites to conduct further reviewof their EMS. Data from the assessments are validated
through audits, site visits by subject matter experts, andother data systems.

Environmental Site Assessment
Outside 3M’s EMS and GEMSA, 3M has
completed environmental site assessments at
11-13
most locations with the goal of identifying
potential historical liabilities. As a result of these
G4

EN

assessments, 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 location.
Additional biodiversity assessments are conductedduring our annual evaluation utilizing the definitions
and tools established by the World Business Council
for Sustainable Development (WBCSD) to screen thecompany’s various uses of water. Additional details on
this process can be found in the Water section.

Applying ISO 14001
The ISO 14001 Environment Management System (EMS)
standard is an internationally-recognized approach for
managing the immediate and long-term environmental
impacts of an organization's products, services, andprocesses. In 2017, 3M continued working with anoutside consultant to help individual locations learn how
to transition and recertify to the latest version of thisstandard, which was established in late 2015. 3M is on
track for timely recertification of all relevant sites to the
updated ISO 14001 standard.
To aid facilities in becoming recertified to the newstandard, three new training modules were developedin the 3M Global Learning System. The modules areused by learning coordinators to create courses, manage
learner roles, process certifications, and run reports;
by learners to search for courses and launch e-learningclasses; and by supervisors to view the learning activitiesof their direct reports and pre-book courses.
As of the end of 2017, approximately 70 percent of ISO
14001-certified 3M locations successfully completed
third-party certification audits for the new version of thestandard. Altogether, our ISO 14001-certified locations
account for approximately 96.7 percent of 3M’s total
product output.
The remaining locations, which will go throughcertification audits in early 2018, are recent 3M
acquisitions and/or 3M office/logistic centers. The ISO
14001 certification scope is specific for each location.
Our approach is to champion ownership at individual
locations to produce the best possible EMS results.

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How We Work | Environmental Management

Third-Party Assuranceof Sustainability Metric
ReportingBureau Veritas (BV) provided independent thirdparty verification of 3M’s 2017 environmental data
(volatile organic compound emissions, water, waste,environmental compliance metrics, energy consumption,and greenhouse gas emissions) included in this 2018
Sustainability Report. For additional information on ourthird-party assurance, see Bureau Veritas’ AssuranceStatement.

Facility Self-Assessments
and Auditing
3M verifies regulatory compliance and alignment withprioritized sections of the self-assessment, conducting
environmental-related audits on a risk-prioritized basis.
In 2017, we updated the EHS Auditing Standard and EHS
Auditor Guideline. In all, our facility audits covered sitesthat manufactured 22.6 percent of total product output.
Key objectives of audits:

Managing Global Risk and Compliance
Maintaincompliance

Share bestpractices

Developenvironmental
professionals

Manage risk

Identify
common areas
for improvement

Build common
understandingof requirements

What comprises the auditing process:••

Manufacturing, distribution, and laboratory
operations are audited for environmental
compliance on a frequency based on relative risk
At least annually, all global operations are assessedagainst a variety of criteria to establish a prioritizedlist of locations for compliance auditing

142 | 3M 2018 Sustainability Report•

3M uses a variety of tools and resources forcompliance auditing, including:

EHS Professional Training

Looking forward…

– ­Internally developed compliance protocols,
created by subject matter experts in regulatory
programs and 3M processes

As part of our ongoing training efforts, in 2017, 3M
conducted monthly webinars for environmental
management employees on topics that have global
interest. The webinars were recorded and placed on a
website that allows convenient access for those who
couldn’t attend the live events. The webinars included
such topics as ISO 14001:2015, The Transition; What’s
New with Environmental Policies and Standards; Spill
Prevention Control and Countermeasure (SPCC) Plan
Overview; Refrigerant Management Update; Recent
Facility Audit Trends; and Waste Resources and Vendor
Auditing, to name a few.

In the coming years, we will be working on increasing
efficiency across the organization through BusinessTransformation, a global platform of standardized
business processes, and the integration of related tools
with our environmental management processes. We
will also drive the continued evolution of our global
environmental regulatory programs, with the aim oftranslating complex or ambiguous requirements into clear
compliance directives for 3M facilities.

– ­3M’s GEMSA as an evaluation tool– ­Externally purchased compliance protocols,
especially for operations outside the UnitedStates, to assure local compliance obligations areunderstood and met– ­Internal environmental compliance experts fromaround the company– ­External environmental consultants, as needed,
to provide additional expertise and third-party
verification of our auditing protocols– ­Complete and robust documentation of audits

2025 Goals Scorecard– ­Findings, with assignments of responsibility anddue dates for closure

3M GoalGoal Progress– ­Detailed reviews of findings, to assure corrective
actions are complete

Reduce Global Manufacturing Waste

5.21

5.33

5.03

2015

2016

2017

10%

3M’s environmental auditing program is audited
periodically by 3M’s Corporate Auditing department.
All EHS auditors, with the exception of 3M EHS
professionals who are guest auditors, are required
to take a certification test. 3M EHS professionals are
assigned to an audit team or lead auditor to provide
support on the auditing process and/or a specificsubject during the audit.

Compliance Analysis andDocumentation
In an effort to create more consistency in global auditingof locations, 3M has refined its Compliance and Auditing
Management and Metric Systems (CAMMS). CAMMS
is the corporate system for maintaining environmental
compliance documents and determinations. It allows
us to conduct internal compliance audits in the context
of applicable regulatory requirements and company
policies and standards. In addition, CAMMS utilizes
a risk assessment tool for prioritizing resources toimplement corrective actions.

Achieveat more than 30% of manufacturing sites

Reduce Global Water Use

10%

30%
Increase Global Renewable Energy

25%

2025

Metric Tons per MM USD Net Sales

28.2

26.6

27.9

2015

2016

2017

30

2025

Percentage of Total Manufacturing Sites

0.001390.001490.00145

2015

2016

2017

2025

Million Cubic Meters per MM USD Net Sales

937

962

935

2015

2016

2017

2025

MMBtu per MM USD Net Sales

0.50

7.60

17.9

2015

2016

2017

25

2025

Percentage of Total Electricity Purchase#improvinglives | 143

How We Work | Environmental Management | Raw Materials

Raw Materials

Earth’s natural resources are limited.
Our drive for preserving them is not.
Our Commitment
The world’s population is growing larger, living
longer, and consuming more – which puts a2
strain on finite natural resources. To address
this challenge, 3M continuously looks for ways torecover, reuse, and recycle by-products and other wastematerial. We are moving from recyclable to renewablematerials in our product and package design. Improving
our raw material usage through product design andoperational considerations provides cost benefits
throughout our supply chain, in material use, energy, andtransportation efficiency.
G4

SO

The 3M 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 and

144 | 3M 2018 Sustainability Reportencourages waste minimization and recycling wheneverpossible. Per the Standard, each 3M location has a
Waste Management Coordinator who is responsible
for coordinating appropriate waste training for all
personnel. Compliance with all 3M and other regulated
waste requirements is evaluated through the internal
environmental auditing program.
Our Disposal of Chemical Waste Standard calls forappropriate management and disposal of chemical
waste, to manage risks and protect the environment.
This includes efforts to reduce the amount and hazards
of waste materials generated, to recycle or reuse thosematerials whenever practical, and to control waste
disposal through final disposition.

2025 Goal: Reduce manufacturing waste by anadditional 10 percent, indexed to sales.

2025 Goal: Achieve “zero landfill” status at more than
30 percent of manufacturing sites.

We’ll continue to drive ‘zero waste’ thinking with our
product designs and process technologies, as well as
waste reduction work at our manufacturing operations.

In addition to our waste reduction goal, we plan toincrease repurposing, reusing, and recycling of potential
waste materials to divert from landfill disposal.

3M Corporate Environmental Operations identifies
opportunities for efficiency improvement and measuresprogress toward raw material usage and waste reduction
goals for locations within our global manufacturing
footprint. The results and raw data are used to identify,
quantify, and prioritize projects to improve, utilizing Lean
Six Sigma (LSS) methodology.

A location receives "zero landfill" status when it has gonea full calendar year without sending any manufacturing
operations waste to a landfill. It will continue to be a zero
landfill location as long as no manufacturing operations
waste is sent to a landfill. Waste, as defined here, does
not include ash generated from 3M material sent to awaste-to-energy or incineration location controlled by athird party.

Results are reviewed quarterly and annually withinregions, businesses, and divisions against goals andtracking metrics. Specialized teams work on a variety
of projects and programs, ranging from basic officerecycling to more complex projects such as developing
and capturing intrinsic waste materials generated off amanufacturing line. Through an evaluation process, allaspects of waste reduction benefits or risk are reviewed.

Our Actions
In 2017, we continued with our company-wide strategy
on reuse, reduction, and internal recycling, as wellas collaboration with our own technical community,channel partners, and civic and conservation leaders incommunities where 3M operates.

#improvinglives | 145

How We Work | Environmental Management | Raw Materials

Waste from manufacturing locations accounts for the
majority of waste in 3M’s environmental footprint. 3M’s
waste metrics include 3M manufacturing operations
with total output greater than 4.54 metric tons per
year (10,000 pounds) which represents 98 percent ofSales Value of Production (SVOP) of our manufacturinglocations.
3M practices waste minimization whenever practicalto reduce the amount and hazards of waste materials
generated. Between 2015 and 2017 there has been a
3.52 percent reduction in absolute total hazardous waste
or a 9.29 percent reduction as compared to total waste.
3M is also dedicated to operating in accordance withall regulations and managing waste materials safely andresponsibly. All 3M locations are required to manage all
returned, recycled, and waste materials from the time ofgeneration until reused, recycled, treated, or disposed.
We work closely with Corporate LSS to increase waste
reduction across all locations. Our waste indexed to net
sales has decreased 26.4 percent since 2005.

Maximizing beneficial use of
raw materials
Raw material usage is a measurement of overall
product and process yield throughout our23, 28
manufacturing processes and is a key metric for
3M. It’s indicative of operational excellence in our
product design and manufacturing processes. Our raw
material usage includes the product, the process, and all
by-products.
G4

EN

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
and provides a foundational opportunity to further
advance waste minimization and recycling at all our
locations. One business’s by-product may connect as
another business’s raw material. As we continue to growinternationally, integrating consistent, yet resourceful,waste management practices in accordance to 3M
standards remains a key objective.

146 | 3M 2018 Sustainability Report

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
beneficial raw material use is important both internallyand externally to address the global challenge ofresource efficiency and scarcity.

3P Global Pollution Prevention Achievements: 1975-2017
First Year Total Pollution Prevention Cumulative Totals, Short Tons
2,500,000

3P (Pollution Prevention Pays)
The 3M Pollution Prevention Pays (3P) program is basedon the belief that a prevention approach to pollution
is more environmentally effective, more sociallyacceptable, and more economical than treatment. Begun
more than 40 years ago, the program has prevented
more than 2.36 million short tons of pollutants and saved
over $2.1 billion based on aggregated data from the firstyear of each 3P project. Success has been achieved
thanks to voluntary participation from employees acrossthe company, including research and development,
manufacturing, logistics, transportation, and packaging.
Innovative projects are submitted and then reviewed andselected based on defined criteria by a 3P committee
representing Research and Development, Engineering,
Environmental, Health and Safety, Manufacturing,
Sustainability, and Supply Chain organizations.
As part of the program, select projects are honored
based upon their exceptional achievement. In 2017,
one division, one country, and several facilities wererecognized for their 2016 achievements at the July 2017
Executive Conference.
•

The 3M Commercial Solutions Division was named
3P Division of the Year, for preventing 3,780 tons ofpollution, at a cost savings of $12.5 million•

United Kingdom received 3P Country of the Yearhonors, for preventing 4,740 tons of pollution at a
cost savings of $3.3 million•

Exceptional Awards went to 3M Rockland (Air
Emission Reduction), 3M Nevada (Greenhouse
Gas Reduction), 3M Tilton, 3M Kamen (Waste
Reduction), and 3M Brookings (Waste and Water
Reduction)

2,000,000

1,500,000

1,000,000

500,000

0
1975

1980

1985

1990

1995

Total Air Pollution
Prevented

2000 20052010

Total Waste Pollution
Prevented

2013

2014

2015

2016

2017

Total Water Pollution
Prevented �#improvinglives | 147

How We Work | Environmental Management | Raw Materials

Global Waste Diversion by Type
Metric Tons

Global Waste
Metric Tons per MM USD Net Sales

350,000

7.0

300,000

6.0

250,000

5.0

200,000

4.0

150,000

3.0

100,000

2.0

50,000

1.0

0

0.0
2013
Waste-to-Energy

2014

2015

Offsite Recycle

2016
Offsite Reuse*

2017

2005

2010

2013

2014

2015

2016

2017

*Waste no longer includes waste-to-energy

Onsite Recycle + Reuse**Does not include Onsite Recycle & Reuse and Offsite Reuse from 3M's Industrial Mineral Product (IMP) Division

Global Waste by Disposal Type
Metric Tons

200,000
150,000
100,000
50,000
0
2013

2014

2015

Treatement/Incineration

2016
Landfilled*Waste no longer includes waste-to-energy

2017

Zero landfill

Dumpster diving to reach zero

Zero landfill is a goal that resonates with our local
communities as well as our suppliers and customers.
However, it has various definitions for different people
and locations. We’ve spent a lot of time during our goal
development process benchmarking peer companies
that span relevant business sectors and industries.
And we’ve chosen a holistic definition: zero landfillmeans no waste is sent directly to a landfill from a 3M
manufacturing location in a calendar year. While wewant to have all locations divert waste from landfills andincrease beneficial reuse, this goal may not be financiallyor technically feasible for all locations in 3M.

In 2017, 3M Cynthiana, Kentucky, which manufactures
such iconic 3M products as Post-it® Notes and Scotch®
Packaging Tapes, joined 52 other 3M locations inachieving zero landfill status.

Our location waste data are reported in a corporate
database quarterly. The data are third-party validated
at select locations and at the corporate level. We also
require locations meeting this goal to complete aninternal assessment to assure accurate reporting.

3M Cynthiana originally set a goal to be “landfill free”
in 2010. Step one in achieving this goal was creating an
employee team focused on reducing waste sent to thelandfill and increasing recycling efforts. Since then thisteam made many trips – or “dumpster dives” as teammembers call them – to the local landfill to identify
waste streams that could be recycled.
Between 2010 and 2016, landfill waste was reduced byover 70 percent (per pound of product), and the facility
was recycling or reusing over 95 percent of its waste. To
eliminate the last waste being sent to landfill, the facility
leveraged a local waste-to-energy operation.

By the end of 2017, 27.9 percent of 3M locations had
attained zero landfill status.
148 | 3M 2018 Sustainability Report#improvinglives | 149

How We Work | Environmental Management | Raw Materials

The facility had its first zero waste to landfill quarterin the fourth quarter of 2016 and has successfully
maintained that status throughout all of 2017.
This achievement contributes to our Sustainability goalto achieve “zero landfill” status at more than 30 percent
of manufacturing sites by 2025.

Looking forward…
As we look ahead, 3M is focusing on initiatives thatwill help us engage more of the value chain. We’relooking to get high yields and reuse waste in otherlocations, processes, and products. We’re testing
disruptive technology that makes clean-up easier, using
fewer solvents.

#improvinglives means changing
how industry works, frompurification to aerospace.

Kaizen waste reduction events
Kaizen is the Japanese word for “continuous
improvement.” In 2017, in a continuation of previous
efforts, teams at 12 3M U.S. locations held kaizen events
to prioritize efforts that will reduce manufacturing waste.
The events included facility walk-throughs, waste-bycause analyses, and identification of opportunities for
improvement. With our learnings from these events, wedeveloped a LSS Sustainability Tool Kit with templates
and examples for replication use at our global locations.

We provide thousands of innovative products, from tapes andabrasives, to adhesives and filtration systems; helping solve someof the world’s biggest challenges across diverse markets.

Part of the solution requires utilizing LSS within alocation to segregate and manage material flow for
waste streams and analyze the availability of internal andexternal waste handling alternatives.
As locations identify opportunities to divert waste
streams, we protect 3M’s reputation while managing
waste, and set up contracts with our haulers, recyclers,
and waste-to-energy companies to confirm that ourmaterial is handled appropriately.

Aligning with Business Transformation
Aligning with 3M’s LSS as a basis for driving continuous
improvement, the True Cost of Waste Black Belt
project was designed to assist in achieving our 2025
goal of reducing manufacturing waste by 10 percent
indexed to sales. By using the LSS tools, the project
team quickly determined that a primary issue for
manufacturing locations is lack of visibility regarding
the quantity and cost of waste streams. The projectused Business Transformation and our global Enterprise
Resource Planning System to gain visibility into eachmanufacturing location’s waste, thereby allowing them
to better use LSS tools for project identification andprioritizing, and ultimately reducing waste.

Industrial
150 | 3M 2018 Sustainability Report#improvinglives | 151

How We Work | Environmental Management | Water

Water

2025 Goal: Reduce global water use by an additional
10 percent, indexed to sales.

3M operations must manage their water resources
through compliance with regulatory requirements,
conservation and reuse, and reporting of water
usage internally.

Our Commitment
With an eye on our footprint and the strength of ourtechnologies and collaboration, we acknowledge wecan continue to make a difference in water availability
and quality around the world.

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 andG4

EN

152 | 3M 2018 Sustainability Reportfuture consumer demands. In addition, water quality
must comply with local regulations and be reliable in thelong term.
Water is an important component for 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 a companywide framework, including both general and specificelements for water management. The standard requires
3M operations to manage their water resources throughunderstanding the balance of water use, compliancewith regulatory requirements, systematic and prioritized
conservation practices, and reporting usage. Water
resources include water intake, effluent water discharge,
and rainwater.

2025 Goal: Engage 100 percent of water-stressed/
scarce communities where 3M manufactures, oncommunity-wide approaches to water management.

Partner with local communities to advance water
recycling and conservation. Ultimately, we aim to help
these communities build and manage their own cleanwater efforts into the future.

Risk-Mitigation Planning
At 3M, we continually evaluate ourapproach to opportunity and risk. We
9, 11-12, 14
2
believe the whole concept of risk
appetite and tolerance is an essential component ofstrategic planning. This includes a broad risk oversight by
the Board and its committees, with committee-level risk
analyses reported to the full Board and executive-levelinternal auditor and Chief Compliance Officer appointed
by, and reporting directly to, the Audit Committee.
G4

G4

EN SO

3M uses the definitions and tools established by theWorld Business Council for Sustainable Development(WBCSD) to screen the company’s various locations andtheir water use with validated WBCSD water availability,
population, and biodiversity information both on acountry and watershed basis. In 2017, 25 sites withannual water use equal to or greater than 1,000 cubic
meters were located in water-stressed areas as definedby the extremely high baseline water stress value
according to the WBCSD-Global Water Tool.
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 tounderstand potential impacts on the surrounding area.
Those sites are also requested to do water conservation
planning, outlining current and future water conservation
efforts. Annual stress-level screening evaluations are
conducted for global operations using available updates
from the water tool, an analysis of site operations andwater usage and local conditions.

Our Actions
We are continuously evaluating our water use
footprint with a consistent, company-wide
8, 10
focus on reuse, reduction, and internal
recycling, as well as collaboration with our own technicalcommunity, channel partners, and civic and conservation
leaders in communities where 3M operates.
G4

EN#improvinglives | 153

How We Work | Environmental Management | Water

3M’s total water usage includes sanitary, process,heating, cooling, remediation, and other miscellaneous
sources. Water usage data are tracked and reported
annually on a global basis for manufacturing sites that
produce greater than 4.54 metric tons (10,000 pounds)of product per year. The reported data accounts for
98 percent of Sales Value of Production (SVOP) which
provides solid coverage of water use consideredmaterial to 3M’s operational environmental footprint.

water-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.

Global Water Usage
Million Cubic Meters per MM USD Net Sales
0.003

Global Water Withdrawal
Global Water Withdrawal
2017 Percentage
2017 Percentage

0.002

Total water consumption has decreased 37.2 percent
between 2005 and 2017 indexed to corporate-wide
net sales. Results also indicate that a majority of 3M
water use in operations is for processing products in
manufacturing and heating or cooling of those processes
and associated operations. We continue to improve ourdata accuracy through monitoring and measurement.

Surface

22.8%

0.001

Surface

Groundwater

46.2%

22.8%

Public Municipal

Water conservation efforts have been achieved throughrecycling, reuse, product redesigns, and improvements
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 not

20.6%

0.000

Groundwater

Other
SourcesPublic Municipal

Other
Sources

10.5%

45

2013

Corporate Water Stewardship Team

20.6%

50

2010

40

In 2017 our Corporate Water Stewardship team, withexecutive management sponsors, continues to review
policies, programs, and procedures while expanding
our global internal systems, to create, identify, andshare best management practices related to water
conservation.
As part of this team, we are closely working with our
Corporate Energy Management group to evaluate
the synergy between water and energy. Through thiswork we are implementing water reduction projects attargeted facilities. For further information on our actions
in energy, see Climate and Energy.

35
30
25

Evaluating Opportunities in Industrial
Water Reuse and Cost of Water

20
15
10
5
0
2005

154 | 3M 2018 Sustainability Report

2010

2013

2014

2015

2016

2014

2015

2016

2017

46.2%

10.5%

Global Water Usage
Million Cubic Meters

2005

2017

3M is a part of a team, working under the auspices ofthe Water Environment & Reuse Foundation (WERF),
on a scorecard to evaluate opportunities in industrial
water reuse. The team is working to develop a tool thatcan provide a facility-level estimate of the true cost ofwater, provide flow/cost breakdown by water use area
and consistency in data requirements based on processspecific changes.

As part of these efforts, we are looking at alternative
ways to evaluate baseline water usage and the potential
water cost and savings provided by capital expendituresat our facilities, including efforts to pilot the tool at oneof our U.S. facilities. We are taking our learnings fromthis tool and looking at ways to implement them within
our water strategy.

Looking forward…
A 10-year plan to address global
water challenges.
Our 10-year strategic plan will focus not only onwater use reduction, but also on collaboration andsocial innovation in search of solutions for emerging
global water challenges. In addition, we will consider
the counterbalance between water reduction, water
quality, and water-related risks to reflect the concept of‘respecting every drop’.
During the first part of 2018, as part of our Corporate
Water Stewardship Team, we are currently evaluating
and looking to update our Water Management Standard
to reflect our efforts throughout our value chain.

#improvinglives | 155

How We Work | Environmental Management | Climate and Energy

Climate andEnergyOur Commitment
A steady focus on climate and energy
conservation.

Through the years, 3M has been a proactive leader inaddressing both the challenges and the opportunities
presented by climate change and energy conservation.
Our proactive leadership is best defined by five areasof action:••

Executive-level commitment to these important
topics and our related principles, commitments,
and risk-mitigation planning efforts
Industry-leading efforts to reduce our own
greenhouse gas (GHG) emissions

156 | 3M 2018 Sustainability Report•

Extensive public policy engagement on bothclimate change and energy conservation•

A decades-long track record of improving energy
efficiency at our locations•

Serving our customers through a wide range ofinnovative products that help them improve energy
efficiency and reduce their carbon footprints

Executive-Level Commitment
Climate change and energy efficiency are highpriority issues throughout 3M, up to the2
Corporate Operating Committee and Chief
Executive Officer. The Corporate Environmental, Healthand Safety (EHS) Committee has been empowered bycompany leadership to take proactive steps and be
responsible for all final decisions on climate change andenergy strategy, including setting company reduction
G4

goals and policies. For climate change strategy and GHG
emission guidance, the Corporate EHS Committee has
appointed a corporate Climate Change Steering Team.

Public Policy Engagement
3M endorses voluntary approaches to GHG emissions
management. Any mandatory GHG emission reductions
should be developed through international negotiations
and follow these policy principles:•

SO

Apply broadly to countries or groups of countries
and GHG emission sources•

Be guided by science-based decision making•

Utilize a consistent, market-based approach•

Encourage investment and protect intellectual
property to facilitate technology breakthroughs•

Include provisions for carbon emissions
trading and/or alternative investment andcompliance programs•

Provide full credit for early reductions in
GHG emissions•

Balance multiple country-level priorities, including
energy reliability and independence, national
security, and economic growth and employment•

Include provisions that promote the efficient
allocation of emissions reductions and assure all
sectors contribute to reduction targets, with theeffect of allowing fair competition and avoiding
market distortions within industrial sectors or
across national boundaries

3M is actively engaged in public policy development
to address climate change concerns. For additional
information, see our Engaging Our Stakeholders section.

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How We Work | Environmental Management | Climate and Energy

Risk-Mitigation Planning
Severe weather and long-term trends could
affect 3M’s operations and supply chain. To
2address these and other risks, 3M maintains asystematic Business Continuity and Planning Process
and Crisis Management Program which coordinates
efforts of local crisis management teams maintained ateach 3M location and international subsidiary.
G4EC

Corporate and local plans take into account the risk ofnatural disaster, infectious disease, employee safety,
protection of assets, customer service, and otherbusiness continuity requirements.
Supply chain risks are mitigated using a variety ofmanagement practices, including:•Multi-sourcing of raw materials•

Pre-qualification of potential outsource
manufacturers•

Maintaining appropriate stocks of raw materials•

Contingency plans with key suppliers to assure
allocation to 3M in the event of supply disruption

Science-Based Targets
3M, as a science-based company, supports a proactive
approach of science-based GHG emission reduction
targets. We have a long record of being proactive on thisissue, as demonstrated by our 68.1 percent reduction inabsolute Scope 1 and 2 (Location-based) GHG emissions
from our operations through 2017, from a 2002 baseline.
This ambitious reduction currently aligns with theconcept of science-based goal setting, in that it far
exceeds the reductions called for to date in the Intergovernmental Panel on Climate Change (IPCC) Fourth
Assessment Report (AR4). See Looking forward below
for additional information.

2025 Goal: Improve energy efficiency indexed to net
sales by 30 percent.

Energy efficiency improvements help reduce energyuse, associated costs, and GHG emissions.

158 | 3M 2018 Sustainability Report

3M has taken a broad approach to managing our energy
footprint, which includes evaluating the impact of new
products and manufacturing processes as well as new
equipment and locations; and reducing the energy
footprint of our manufacturing and administrative
locations. In addition, we actively share information
about our energy management program with external
stakeholders, such as suppliers, customers, and otherinterested organizations.

2025 Goal: Increase renewable energy to 25 percent
of total electricity use.

Achieving this goal will mean adding nearly 800,000
MWh of renewable energy use globally. The primarysources of this renewable energy will be wind and solar.

2025 Goal: Ensure GHG emissions at least 50 percent
below our 2002 baseline, while growing our business.

3M is in a leadership position due to our early actions,starting more than 10 years ago, to reduce our GHG
emissions. We are committed to continuing thatleadership even as we grow the company in order tohelp our customers address the issue of climate change.
By conserving energy, reformulating products, andprioritizing opportunities, 3M has been able to achieve
industry-leading GHG emission reductions. Other
companies are setting goals to move closer to theachievements we have already realized.

2025 Goal: Help our customers reduce their GHGs by
250 million tons of CO2 equivalent emissions throughuse 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 the useof our products. For additional information on how wework with our customers, see Our Customers.

Our Actions
Energy Management
Energy management at 3M goes beyond
energy-efficiency efforts in factories and3, 5, 6
buildings. It is a team effort guided by the global
Corporate Energy Policy and coordinated by the
Corporate Energy Management team, with oversight by
3M’s Corporate Energy Manager and Engineering Vice
President, and active support from the Chief Executive
Officer. The group based in St. Paul, Minnesota regularly
engages with company-wide stakeholders to expand
their global footprint and grow a culture of energy,
forming a Corporate Energy Leadership Team. Membersof this inter-departmental team come from
Environmental Operations, Location Operations,
Finance, Sourcing, Engineering, Energy Management,
Corporate Marketing, and Public Affairs. Eachdepartment provides cross-functional contributions,assuring that:
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EN

on September 1, 2017, includes 69 turbines on a 14,000acre site.
This is the second wind energy agreement for 3M within
the last two years. With this agreement, our total windenergy purchases now have reached 579 megawatt
hours of wind energy or 17.9 percent of our company’s
total global electricity use.

Holding treasure hunts to findconservation opportunities
In 2016, 3M conducted energy treasure hunts at eight
3M locations, focused on building up energy-based
project hoppers and, ultimately, making continuous
improvement toward the company’s 2025 goals.
In 2017, 16 more sites joined in the hunt. These sites
identified approximately $5.0 million in energy savings
opportunities, an average of 12.3 percent of their energy
spend. Several more sites are scheduled in the future.
To see our efforts in action, see additional information
under Energy Summit.

•

Energy-efficient technologies are being used•

Opportunities are being identified in thedesign process

Combined heat and power•

Renewable energy opportunities are identified andfinanced•

Data are tracked routinely and consistently
by locations

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 andreduce our combined direct Scope 1 and indirect Scope
2 GHG emissions. The implementation of advancedenergy information systems in our manufacturinglocations is expected to give operations personnel
information they can use to more effectively manage
energy use.

3M reviews its Strategic Energy Management Planannually to prioritize programs and meet global goals.
The plan uses input from stakeholders, including
manufacturing directors, plant managers, operations
employees, and executive management. Goals of theplan include to continuously improve results, leverage
engineering expertise and advances, drive facility-level
efficiency improvements, maintain top management
support, and protect 3M’s reputation.

Learn more on how we are implementing these systems
at our facilities: here.

Catching Wind

ISO 50001

In a continuing effort to increase the use of renewableenergy sources, 3M signed an agreement to purchase
100 megawatts of wind energy from Akuo Energy. Thisagreement includes the sale of wind energy from a 150
megawatt wind turbine plant located near Rocksprings,
Texas. This Akuo Energy project, which began operation

The internationally recognized ISO 50001 standard
and the U.S. Department of Energy’s (DOE) Superior
Energy Performance (SEP™) certification program,
help 3M locations become attuned to recognizing andseizing opportunities to increase energy efficiency in site

#improvinglives | 159

How We Work | Environmental Management | Climate and Energy

operations, and move from delivering energy projects
in a loosely-organized fashion to a structured system ofmanagement. By integrating the systematic ISO-based
framework of “plan-do-check-act” for the managementof energy in on-site operations, our locations have seensavings in energy costs and consumption, expansionof employee engagement, and increased visibility to
the tracking of site energy performance. 3M has been
busy increasing its ISO 50001 and SEP-certified profile,with 28 locations now certified or working toward
certification under those two programs.
In 2017, we were recognized by the Clean Energy
Ministerial (CEM) Energy Management LeadershipAwards program. 3M was one of 34 organizations,
across 21 countries, to receive the Energy Management
Insight Award. The award recognizes 3M’s role inbuilding awareness of ISO 50001 and contributing
to global knowledge of energy management
implementation. 3M has been invited to speak at two
related events: joint China-U.S. Energy Efficiency forum
at Denver in October; and the International Energy
Agency (IEA) Workshop on Energy Management
Systems and Digital Technologies for Industrial Energy
Efficiency and Productivity, at Paris in December.

We are transforming the ways we use
and evaluate energy
In 2017, 3M piloted a project at select facilities focusing
on energy reduction opportunities in heating, ventilation,
and air conditioning (HVAC) technology. We realized
approximately $175,000 in savings with optimization of
HVAC units completed at no cost. With the successful
demonstration of this project, we seek to introduce thisprocess at more 3M facilities in 2018.

We continued our Lighting Challenge in 2017, focused on
3M locations upgrading their lighting systems to lightemitting diode (LED) technology. It is estimated that over
250,000 lamps have been purchased for installationin 2017, producing a cost savings of approximately$3.2 million.

Hunt training session. The 3M Corporate Environmental
team gave its first live and in-person group training witha global team of participants, using tools, resources, andtraining for successful treasure hunt events. At the endof the day, participants identified an estimated $190,000
in annual energy cost savings.

Plant Engineering and Energy Global
Leadership Summit

Energy Excellence Awards

In June 2017, leaders of our growing energy network
met in St. Paul, Minnesota as a part of the Plant
Engineering and Energy Global Leadership Summit. For
the first time, 3M included a specific energy track, withinspirational results. More than 160 energy professionals
who work at various levels throughout the corporation
attended.
Over the course of three days, we had 12 energyspecific 3M presenters and seven poster session
participants, with an electrical meter vendor and theDepartment of Energy offering unique breakout session
opportunities. Topics covered included:•

How to Build a Cross-Functional Energy Team•

On-Site Solar at 3M Locations•

The Value of Energy Metering•

Energy Programs in Canada•

Energy Project Prioritization

On the final day of the conference, the 3M Cottage
Grove, Minnesota facility hosted an Energy Treasure

160 | 3M 2018 Sustainability Report•

3M India, for energy cost reductions related to theinstallation of a rooftop solar system that meets 10
percent of the Ranjangaon facility’s power needs

At the conclusion of each year, the Corporate Energy
Management team recognizes the top facilities in our
program for their results in energy metrics. To qualify,
these facilities must demonstrate an active culture ofenergy management practices on-site, as evidenced
by their delivered project savings, their energy teamassessment score, and the resulting improved efficiency
in energy intensity on-site. Fourteen platinum awards,
six gold awards, and three silver awards were presented
to facilities with the most impressive results.

3M Greenville, South Carolina for eliminating
solvent from the curing process for box
sealing tapes

Global Energy Use
MMBtu

30,000,000

20,000,000

Also in 2017, we have seen energy monitoring getting
increased visibility and support within engineering
on new projects and upgrades. This new metering
technology will aid in the identification of energy costs
associated with the manufacturing process and allow
for better analysis to reduce energy costs both during
production and non-production time periods.
In addition, we developed an energy analysis tool foruse by all 3M locations. The tool is designed to provide
quick analysis and identification of energy projects, andestimated payback periods. It uses actual site energy
costs and weather data for analysis of energy costs inlighting, motors, makeup air, and compressed air.

3M Taiwan, for increasing solvent recovery
efficiency and reducing steam consumption insolvent recovery units

2017 Plant Energy Award

The Energy Excellence Award honors individuals andteams that incorporate the goals of the Corporate
Energy Program in engineering projects. The projects
and individuals nominated actively demonstrate theircommitment to include energy efficiency in the designof projects, in equipment selection, or in the use ofalternative energy supplies. The award is one of global
recognition within the 3M Engineering community.
In May 2017, three awards were given at the 2017
Engineering Awards ceremony in St. Paul, Minnesota:••

10,000,000

0
2005

2010

2013

2014

2015

2016

2017

2017 Plant Engineering & Energy Leadership Summit
June 13, 2017
#improvinglives | 161

How We Work | Environmental Management | Climate and Energy

These quality system elements coupled with third party
review of our emissions have assured that 3M’s GHG
inventory is always in line with the five core principles
of relevance, completeness, consistency, accuracy, andtransparency.

Global Energy Use
MMBtu per MM USD Net Sales
1,350

GHG emission reductions are achieved through avariety of methods: improving process and equipment

1,200

efficiency, upgrading equipment, reducing our demandfor energy use, increasing our use of renewable energy,
and implementing and maintaining pollution control
technologies. These methods, and more, are integral
to the company’s overall success and assist us withthe challenge of helping to address global climatechange concerns.

1,050
900
750

Greenhouse Gas Emissions, Scope 1 and Scope 2
Million Metric Tons CO2 equivalents

600

20

450

18

300

16

150

14

0

New
Methodology

12
2005

2010

2013

2014

2015

2016

2017

10
8

Direct Emissions (Scope 1) andIndirect (Scope 2)
Since 2002, 3M has reduced Scope 1 GHG
emissions by 76.4 percent, providing a direct
15-19
and immediate reduction in our impact on theenvironment. During this same timeframe, we haveachieved a 68.1 percent reduction in absolute Scope 1
and 2 Location-based GHG emissions. What makesthese reductions even more impressive is that theyoccurred even as the company grew sales andproduction during this timeframe.
G4

EN

The GHG inventory has been calculated from 2002
to the current year by the 3M EHS Laboratory inaccordance with the World Resources Institute (WRI)/World Business Council for Sustainable Development(WBCSD) GHG Protocol Corporate Greenhouse Gas
Accounting and Reporting Standard. The 3M EHS

162 | 3M 2018 Sustainability Report

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, our calculation
methodology has been improved by working with anumber of the quality system elements required by
ANSI/ISO/IEC 17025, including:•Defined responsibilities and interrelationships of all
key staff•

Documentation of key personnel qualifications•

Control over quality system documents
and procedures•

Control of records•

Corrective and preventive action system•

Internal audit program•

Documented and approved calculation procedures

64
20
2002**

2005

Scope 1 GHG Emissions(AR5/MRR Method)

2010

2012*

Scope 2 Location Based
GHG Emissions(AR5/MRR Method)

2013*

2014*

2015*

Scope 1 GHG Emissions(AR4 Method)

2016*

2017*

Scope 2 Location Based
GHG Emissions(AR4 Method)*2012-2017 U.S. EPA GHG-MRR/IPCC AR5 based inventory accounting is not directly comparable to 2002-2011 WRI/IPCC TAR, AR4 based GHG accounting*Under U.S. EPA GHG-MRR/IPCC AR5 methodology, >95% of total reported emissions are from Kyoto gases**2002 Inventory recalculated according to U.S. EPA GHG-MRR/IPCC AR5 methodology (2.7% Increase over original reported value)#improvinglives | 163

How We Work | Environmental Management | Climate and Energy

GHG Emissions from Our
Suppliers and Customers(Scope 3)

Indexed Greenhouse Gas Emissions, Scope 1 and Scope 2
Metric Tons CO2 equivalents per MM USD Net Sales
1,200

New
Methodology

3M has been developing our Scope 3 GHG
emissions inventory since the publishing of the4, 17, 30
WRI/WBCSD GHG Protocol Corporate Value
Chain (Scope 3) Accounting and Reporting Standard in
October 2011. We place a high value on sound scienceand decision-making. When the complexity of the supply
chain does not allow for direct calculation, an input/
output model calculation method is used.
G4

EN

1,000

800

We continuously evaluate our methodology and auditing
practices to assure meaningful, consistent, and accuratecomparison of emissions over time. At this time, abase year has not yet been established for Scope 3
GHG emissions.

600

400

200

0
2002**

2005

Scope 1 GHG Emissions(AR5/MRR Method)

2010

2012*

2013*

Scope 2 Location Based
GHG Emissions(AR5/MRR Method)

2014*

2015*

Scope 1 GHG Emissions(AR4 Method)

2016*

2017*

Scope 2 Location Based
GHG Emissions(AR4 Method)*2012-2017 U.S. EPA GHG-MRR/IPCC AR5 based inventory accounting is not directly comparable to 2002-2011 WRI/IPCC TAR, AR4 based GHG accounting*Under U.S. EPA GHG-MRR/IPCC AR5 methodology, >95% of total reported emissions are from Kyoto gases**2002 Inventory recalculated according to U.S. EPA GHG-MRR/IPCC AR5 methodology (2.7% Increase in absolute emissions over original reported value)

Greenhouse Gas Quality System
Relevance

CompletenessConsistency

Accuracy

Transparency

Clearly definedboundaries

Strive to calculate
and report all GHG
emissions; data
coverage 99+
percent of inventory

Data based on
approved scientificmethods; should
methods change,
3M will, wherever
possible, recalculate
prior years’ inventory

Audit (internal andexternal) GHG
emissions andcalculations

Clear disclosureof processes,
procedures,
assumptions, andlimitations of the
GHG inventory

164 | 3M 2018 Sustainability Report

For this report, the model for our Scope 3 Category 1(Purchased Goods and Services) and Category 2 (Capital
Goods) GHG emissions changed. The new model isbased on the 2017 EPA United States environmentallyextended input-output model (USEEIO) factors (USEEIO:
A new and transparent United States environmentallyextended input-output model, Yi Yang, Wesley W.
Ingwersen, Troy R. Hawkins, Michael Srocka, David
E. Meyer. Journal of Cleaner Production 158 (2017)308-318).
Recalculation of prior year’s Scope 3, Category 1 and
2 GHG emissions, using this new model, is reflected inthis year’s report. Prior published Scope 3 data are notdirectly comparable to this report.
During an internal audit of these prior-year values, we
identified a separate underreporting error for the 2016
reported values for our Scope 3 Category 1 and 2 GHG
emissions of 7 percent and 4 percent, respectively.
This error arose from incorrect raw data used in priorcalculations using the old model. The recalculated datafor 2016 corrects this error. It is reasonably likely thatsimilar raw data input errors exist in previously published
Scope 3, Category 1 and 2 data for 2015 and prior years.
For 3M, Categories 9 (Downstream Transportation
and Distribution), 10 (Processing of Sold Products), 11(Use of Sold Products), and 12 (End of Life Treatment
of Sold Product) pose a unique challenge. This isdue to the number and complexity of products wesell, and the diversity of their uses by businesses andconsumers across the globe. Many of our approximately
55,000-plus product lines are “intermediates” withmany potential downstream applications, each with adifferent GHG emissions profile, making it impossible toreasonably estimate downstream emissions associatedwith the use of these products.

Evaluating Customer GHG
Emissions Reductions
3M has a process in place to develop
reasonable estimates for reductions in customer
7
GHG emissions associated with use of 3M
products. This process is based on the ISO 14064-2
standard for determining GHG emissions reductions.
The standard compares emissions from the project
scenario (3M product scenario) against abaseline scenario.
G4

EN

The boundary of the 3M product scenario is nature
to end-of-use or nature to grave. Where reliable
information is available, we include emissions associatedwith disposal of 3M products. The 3M productscenario uses high-level estimates and averages for
manufacturing emissions (e.g., energy per poundof product produced at a location rather than more
specific information).
The boundaries of the baseline scenario match the 3M
product scenario, except that we apply conservative
assumptions. Conservative is defined as a choicethat creates a minimum in the GHG emissions of thebaseline scenario. For example, if data does not exist
for a chemical in the baseline scenario, we assume
the emissions to be zero. In some cases, there is noequivalent to the 3M product, so the baseline scenario isthe absence of the 3M product entirely.
The uncertainty for these studies is ±50 percent, whichapproximates data of fair to good quality as defined in
the WRI/ WBCSD Product Life Cycle and AccountingStandard Quantitative Inventory Uncertainty Guide.
According to our calculations, in 2017 alone, ourcustomers avoided emitting about 13 million metrictons CO2 equivalents through use of various 3M
product platforms calculated in accordance with
the ISO 14064-2 and 3M EHS Laboratory standard
operating procedures.
#improvinglives | 165

How We Work | Environmental Management | Climate and Energy

local regulations. We evaluate all equipment options,select those that are the most environmentally effective
and cost-effective, and assure proper operation ofemission control equipment. Technologies include
Thermal Oxidization, Solvent Recovery, Carbon
Adsorption, Biofiltration, Electrostatic Precipitators,
Baghouses, Scrubbers, and Cyclones.

Global Volatile Organic Compounds (VOCs) Emissions
Metric Tons per MM USD Net Sales
0.350
0.300
0.250

Ozone Depleting Substances

0.200

The Montreal Protocol is the first worldwide
agreement designed to protect human health20
and the environment against the adverse effectsof the depletion of the stratospheric ozone layer. The
Protocol identifies the list of ozone depleting substances(ODS) that are targeted for control practices, reductions,or total phase-outs and provides a phase-out schedule.
In addition, some countries have established regulations
regarding the management of refrigeration appliances.
G4

EN

0.150
0.100
0.050
0.000
2005

2010

2013

Air Quality Management
G4

EN

21

An important component to 3M’s Sustainability
strategy is our commitment to improving air
quality globally.

As a company that uses many solvent-based materials,
3M inherently releases volatile organic compounds(VOCs) from many of our manufacturing processes.
Because of this, many of our locations require permits
with rigorous VOC tracking requirements. Even wheretracking is not required from a regulatory perspective,
3M voluntarily tracks VOC usage and emissions frommajor sources of emissions in order to identify further
opportunities for reduction. 3M has developed internal
programs to minimize its VOC emissions. We track
and report emissions based on raw material usage,
engineering estimates, and stack test data.
For many 3M manufacturing processes, NOx, SO2,
CO, and PM are emitted as products of combustion.
These pollutants are tracked and reported externallywhere required by federal, state, or local regulations forindividual locations. 3M internally tracks all fuel usage

166 | 3M 2018 Sustainability Report

2014

2015

2016

2017

and calculates the combustion emission rates using
accepted emission factors.
Main VOC by Source Type••

3M’s VOC emissions are primarily attributed tocoating lines
Reactors and mixing are also significant sources of
VOC emissions

VOC by Location•

90 percent of our locations emit less than 100 tons
per year VOC•

30 percent of our locations emit less than 1 ton peryear VOC

Implementing and maintaining
pollution control

3M has set forth requirements in order to provide aframework for how 3M operations are to manage theirrefrigeration appliances containing ODS in the context
of applicable international protocols, local regulations,and current and future economic impacts. These
requirements include conformance to the Montreal
Protocol when applicable.

Clean Air Assistance Project Funding

Looking forward…
3M is supporting the further implementation of ISO
50001 though a collaborative effort with the Canadian,
Mexican, and U.S. governments.
We will continue work to understand and evaluate
methodologies for setting a science-based GHG
emission target. One challenge is the current gap
in availability of a certified reduction scheme for all
entities. We have evaluated the methods currently
provided by the Science Based Targets Initiative(SBTI) and determined that these may not support
the operations of a large, highly diversified entity
such as 3M. So we are now actively working to find ascience-based approach that could be appropriately
applied to a company with our broad set of productcategories and markets served. Moving forward, we willcontinue to track how the SBTI expands its methodology
offerings, and evaluate other options that may become
available. However, above all, we will continue to work
toward achieving our four existing climate and energy
related goals.
We will continue to track the evolution of climate change
related regulations globally. Through understanding
from both internal and external perspectives, we canstrengthen and develop corporate strategy, goals,
targets, programs, initiatives, and engagement toadvance Sustainability globally.

In November 2016, 3M made a financial contribution
to support the Environmental Initiative’s Clean Air
Assistance Project (CAAP) in Minnesota. The primaryobjective of this project was to assist small businesses
with emission-reduction initiatives, primarily those
involving volatile organic compounds (VOCs). In
2017, two solvent-based auto body shops in St. Paul,
Minnesota were converted to waterborne paint systems.
This change eliminated an estimated 2,950 pounds of
VOC emissions annually. Public project funding, whichleveraged 3M’s initial contribution, was provided bygovernment, community organizations, and companies
connected to the two businesses.

3M has made significant progress in reducing air
emissions – at the source, and by improving process
efficiencies. Where emissions cannot be reduced within
the process, 3M installs and maintains air emission
control equipment as required by federal, state, and#improvinglives | 167

How We Work | Suppliers

Suppliers
Defining and aligning Sustainability expectations
for our supply chain around the world.

Our Commitment
2025 Goal: Drive supply chain Sustainability throughtargeted raw material traceability and supplierperformance assurance.

We understand that our Sustainability impacts
extend beyond our own operations. By
12purchasing raw materials and services fromsmall and large companies all over the world, weparticipate in a global, complex, supply chain. And it
doesn’t stop there. Our suppliers have their own
suppliers, extending back to the original source ofeach material we use.
G4SD

to maximize the positives and mitigate the potential
negatives by aligning our supplier expectations with
our own corporate values. We expect our suppliers to
be transparent about their environmental and social
practices, provide improvement ideas, and work with us
to transform our shared supply chain when needed.
We actively verify our new and existing suppliers’
performance against our expectations on a riskprioritized basis, using our Due Diligence Management
System, which is modeled after the Organization for
Economic Co-operation and Development (OECD)
Guidelines for Multinational Enterprises.
Our Due Diligence Management System consists ofthe following elements, which aid with our continuous
improvement efforts.

At each step in the supply chain, there are benefits(like employment and community-building) as wellas the potential for negative impacts (like pollution orunsafe or unfair labor practices). Our commitment is
168 | 3M 2018 Sustainability Report#improvinglives | 169

How We Work | Suppliers

3M Supply Chain Due Diligence Management System
ValuesTransparency

Transformation

Verification

Reportestablish strong
policies andmanagement
systems

identify and assess
risks in the supply
chain

design andimplement a strategy
to respond to
identified risks

audit supply chain
due diligencereport on supply
chain due diligence
activities

Our Commitment

Our Action

Our Action

Our Action

Our Action

3M Supplier
Responsibility Code

90K suppliers
120 countries
200 sub-categories

Paper Supply Chain
Traceability Process

Cumulative Supplier
Assessments

California Supply
Chain Transparency
Act Disclosure

3M Conflict
Minerals Policy

Technical
Capabilities Close
to Customers

3M Pulp and Paper
Sourcing Policy

UK Modern Slavery
Act Statement
Form SD
Conflict Minerals
Report3M Sustainable
Forestry

Strong Policies aligned with
our Values
The 3M Supplier
Responsibility Code
32
10
14
9
(SRC) outlines 3M’s
foundational social and environmental expectations in
the following areas:
G4

G4

EN HR

•

G4

LA

G4

Chains Act, the United Kingdom Modern Slavery
Act, and the U.S. Federal Acquisition Regulations(FAR) on forced labor and human trafficking.
•SO

Labor: requirements align with the 3M Human
Rights Policy, and includes important concepts likefreely chosen employment (no forced, bonded, or
trafficked labor), restrictions on working age (nochild labor), and appropriate working hours andwages. Setting these expectations helps assure
our suppliers’ actions will reflect 3M’s values onhuman rights as well as the values underlying theInternational Labor Organization (ILO), and laws
such as the California Transparency in Supply

170 | 3M 2018 Sustainability Report••

Environment, Health, and Safety: we expect our
suppliers to care as much about the safety of theirworkers and their communities as 3M does, andto implement proper procedures and controls toprotect them.
Ethics: expectations align to the 3M Code of
Conduct holding our suppliers to the same highstandards of honesty and integrity. Suppliers are
to prohibit any form of bribery and corruption, andprevent conflicts of interest.
Management Systems: we expect our suppliers tohave processes in place to systematically conformto the 3M SRC, as well as all legal requirements,
and to commit to continuous improvement.

The SRC is based on the 3M corporate values forsustainable and responsible operations and aligns withthe 10 Principles of the United Nations Global Compact,of which 3M is a signatory. The SRC is also materiallyconsistent with the Code of Conduct of the Responsible
Business Alliance (RBA), formerly known as theElectronics Industry Citizenship Coalition (EICC).
The SRC, as with our previous 3M Supply Chain
Policies, establishes 3M’s expectations for new andexisting suppliers anywhere in the world, and for any
supplied material or service. Our new supplier vetting
process includes review of the SRC expectations andconfirmation that their programs and practices, as well as
their subcontractors, involved in the supply of products
and/or services conform to standards that are consistent
with the SRC. Our contract agreements have included
expectations from our Supply Chain Policies, and are
now being updated to phase in and incorporate the SRC.
We expect our suppliers to establish and implement
their own relevant policies and programs in alignment
with this SRC, and to enforce these expectations with
their own suppliers, thereby propagating our highSustainability standards up our supply chains.
3M’s Vice President of Strategic Sourcing andPackaging Solutions is accountable for 3M’s Responsible
Sourcing program. Executive leaders from Supply
Chain, Compliance & Business Conduct, Strategic
Sourcing, Legal, Sustainability, Human Resources, andEnvironmental, Health, and Safety (EHS) are updated atleast semi-annually on the program’s status and have theopportunity to provide input on the various programs
and activities.

Supplier Risk Assessment &Supply Chain Transparency
Our general supplier performanceverification process begins with a self33
2
assessment questionnaire (SAQ). The
SAQ is used to understand supplier programs andwhether they are in conformance with 3M expectations.
An on-site assessment may be conducted, by 3M or
third party, and any deficiencies are ultimately corrected
through a Corrective Action Preventive Action (CAPA)
process, which may include announced or unannounced
follow-up assessments.
G4

G4

EN SO

If the assessment identifies gaps or findings, a Supplier
Corrective Action Request (SCAR) is established toassure appropriate resolution and conformance with
3M’s requirements. If a supplier is unwilling to work with
3M on the identified gaps or not able to close the issues
within a reasonable timeframe, alternative actions are
determined with a cross-functional business team toescalate and resolve the situation.

Additional Expectations forHigher-risk Supply Chains
In addition to the global SRC
expectations for all suppliers,
13
33
15
certain areas warrant
additional and specific formal expectations to drive moresustainable responsible practices. In particular, our use
of certain minerals that have the potential to be sourced
from conflict areas, and our use of timber-based
products and other plant materials (pulp and paper).
G4

G4

G4

EN EN LA

Focus: Conflict Minerals
Another prioritized area in our raw material supply
network is the responsible sourcing of minerals. 3M
deplores the violence and inhumane treatment that has
occurred in the Democratic Republic of Congo, adjoining
countries, and other high-risk regions as defined by
global regulatory bodies, and is committed to supporting
responsible sourcing of 3TG (tin, tantalum, tungsten,and gold) from all such regions. In 2017, 3M refreshed
its Conflict Minerals Policy, as well as 3TG-related
objectives for our suppliers as part of our responsible
sourcing expectations. 3M expects its suppliers to adopt
a similar policy and due diligence management system,
and require the same of their suppliers.
In addition, 3M is an active member of the Conflict-Free
Sourcing Initiative (CFSI), now known as the Responsible
Mineral Initiative (RMI), which develops tools andguidance for companies on conflict minerals.
Our membership in RMI and various sub-teams suchas the Smelter Engagement Team (SET), Plenary Team,and special activities like the Due Diligence White Paper
update have provided an opportunity for 3M to offer ourideas and learn from other member companies as we all
work together on this important journey.

#improvinglives | 171

How We Work | Suppliers

Focus: Pulp and Paper

Supplier Diversity

3M has prioritized pulp and paper products as anarea that warrants additional formal expectations,due to potential environmental risks like deforestationand habitat loss, potential human rights issues likeinfringement of indigenous peoples’ rights, and potential
unsafe labor practices. As a global paper purchaser andSustainability leader, 3M is well-positioned to positively
influence practices throughout the forest products’
supply chain. We adopted our current Pulp and Paper
Sourcing Policy in the spring of 2015 to set standards of
excellence for our suppliers and their suppliers throughall tiers of supply to the forest.

Equal access to business opportunities is notjust deserved, it’s a priority. Regional self9
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 locations ofoperation, this information is business confidential.

This policy makes it clear that we want to source
paper products from suppliers who share our values
and are committed to protecting the world’s forests.
Annually we evaluate our suppliers of pulp and paper
raw materials, pulp and paper-based third-party
manufactured products, and paper-based packaging
to prioritize engagement with those most significant toour business, and those with the possibility of supply
chain entities of higher environmental or social risk. Our
engagement hinges on extensive communication andeducation of our suppliers on our policy expectations,and inquiries regarding our suppliers’ policies andsystems to assess the Sustainability of their supplier
network and conformance to our code and policy. We
also expect our suppliers to disclose the entities in their
supply chain, all the way to the forest source. We believethat only through transparency can we truly identify
potential Sustainability risks and collaborate to raise theperformance of our shared supply chains.
We partner with The Forest Trust (TFT) for theirexpertise in developing and implementing responsible
sourcing policies, and improving forest management
practices across global supply chains. We also
actively collaborate with other TFT responsible paper
members, our suppliers, and peer companies to advance
Sustainability in the global paper supply chain. In the
big picture, our goal is to assure that the virgin woodfiber used in our pulp and paper-based products andpackaging comes from sources that protect forests andrespect the rights of workers and people who live in or
may depend on forests for their livelihood.

G4EC

3M has a long-standing commitment to sustainablebusiness practices and supporting the economic successof our communities, including working with both diverseand 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, and Veteran/Service Disabled Veteran).

4. Further disrupt the status quo by working tomove some of our tier two dollars to tier one andfocusing on diverse suppliers in our request for
proposal (RFP) activity
In 2017, 3M spent $1.42 billion with small businesses,
representing 26.4 percent of our U.S. domestic spend.
We also spent $223 million with diverse suppliers, which
represents 3.96 percent of U.S. domestic spend. Our
progress is routinely communicated to leadership acrossthe organization.
We remain committed to supporting small businessand diverse suppliers and their positive impact on theeconomic viability of communities. 3M continues toreassess elements of our approach, working across theindustry to glean best practices.
More on our Supply Diversity program can be found in
the Partners and Suppliers Diversity section, here.

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.
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.

6,000

To achieve our goals, 3M has implemented a four-partstrategy aimed to:

5,000

1. Increase our spend with current diverse suppliers
by reviewing our existing diverse suppliers by
diversity category

Our Actions
Responding to risks,transforming our supply chains
We are constantly managing changes
in supply markets both where there is
12
2
an opportunity to extract value anddefensively where necessary to secure supply. As
described above, we focus efforts on the salient issues in
categories where human rights and environmental risks
are the greatest. More broadly, we conduct robust risk
prioritization to determine other suppliers we will engage
via an assessment against our SRC, which includes
policy and contract conformance.
G4

G4

SD SO

3M has historically used industry indices to identify
higher-risk supply chains and has recently adopted theuse of a data-driven software solution in conjunction
with industry information and Lean Six Sigma (LSS)
tools to optimize and strengthen its risk management
processes. The criteria matrix helps rank global
suppliers, using multiple factors like: geographic,
category, and business critical elements to determine
where assessments should be performed.

Cumulative Supplier Assessments, since 2008
Total number

4,000
3,000

2. Identify additional diverse suppliers in our existing
supply base by reviewing our top non-diverse
suppliers by spend category

2,000

3. Find “new-to-3M” diverse suppliers

1,000
0
2013

172 | 3M 2018 Sustainability Report

2014

2015

2016

2017
#improvinglives | 173

How We Work | Suppliers

Verifying our Supplier
Performance
Applicable for all suppliers,
we apply our supply chain risk
32
10-11
14-15
assessment process toprioritized suppliers, each of which must complete a
SAQ and/or be subject to an on-site assessment as
specified in our SRC.
G4

G4

EN HR

G4

LA

Through 2017, over 5,000 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 inthe past six years.

Forced Labor andHuman Trafficking
3M's efforts to eradicate forced labor and humantrafficking from its direct supply chains are discussed in
more detail in 3M's California Transparency in Supply
Chains disclosure and 3M’s United Kingdom Modern
Slavery Act Statement. These disclosures communicate
our commitment to legal and ethical practices throughour membership in the United Nations Global Compact
and implementation of 3M’s Code of Conduct, andworking with others to abolish human rights atrocities,
especially as it relates to human trafficking, forcedlabor, modern slavery, etc. 3M is committed to doing
our part to eradicate human trafficking in any form fromthe global supply chain. We have robust policies andsystems in place to control these practices in our own
operations and with our suppliers. As 3M sets a high bar
for itself regarding labor and employment, it expects thesame from its suppliers as articulated in the SRC.

Conflict Mineral Actions
Forging ahead with continuous
improvement
3M’s Conflict Minerals program, now in its fifth year,
has gone through continuous improvement, based onlearnings from past campaigns and identifying ways
to optimize and increase the effectiveness of program
activities.
A 3M Six Sigma project was initiated in 2017 to define,measure, analyze, implement solutions, and define
controls that will sustain gains in the Conflict Minerals
program. As a result, numerous improvements were
implemented including contracting with a Conflict
Minerals third party provider to accelerate the process.
We make use of the RMI Conflict Minerals Reporting
Template (CMRT) to help our prioritized 3TG suppliers
gather and report information on the smelters andrefiners in their supply chains. Our requests include
links to 3M’s Conflict Minerals website, which covers
our Conflict Minerals Policy, and 3M training on how
to attach their CMRT to 3M’s website survey tool.
In addition, the website directs suppliers to training
resources available through the RMI.

Additional information can be found in the 3M Conflict
Minerals Securities and Exchange Commission filings
found on 3M Supplier Direct, Supplier Responsibility
Expectations.

Pulp and Paper Actions
Pulp and Paper Policy implementationon the ground
Throughout our policy implementation, we haveseen several examples of marked improvements
in responsible sourcing practices as a result of ourengagement with suppliers. These include:•

Meeting with suppliers’ senior corporate executives
on the importance of assuring responsible andsustainable supply chains, and agreeing tocollaborate on that goal•

Suppliers establishing new Sustainability positions
within their companies•

Significant increases in supply chain traceability
and transparency•

Increased engagement by our suppliers with their
upstream supply chain

Conflict Mineral Traceability Progress*based on Responsible Minerals Assurance Process (RMAP)

RMAPNot Enrolled

17%

RMAP Active

2%

RMAP Conformant

81%

174 | 3M 2018 Sustainability Report

We’re continuing to stay abreast of emerging andrecent legislation such as the European Commission’s
regulation on conflict minerals, to assure that ourconformance and due diligence management system
are aligned. Members of our European Government
Affairs team have been closely aligned with industry
and government to understand the scope, impacts, andtiming of the new European regulation. The team has
proactively assessed potential applicability so 3M will be
best prepared to implement the new rule.

Through an online survey, our suppliers can provide
complete supply chain information all the way to theforest sources, or they can easily forward parts of theonline survey to their suppliers (paper or pulp mills, forexample) for completion. We aim to work with suppliers
and peer companies to document as much of our global
paper supply chain as possible, to amplify our efforts todrive sustainable practices throughout the supply chain.

Paper Supply Chain Traceability Process
2017 Percentage

Not Yet Engaged
or Traceable

16%

Traceable to Forest
Source or 100%Recycled

34%

Traceable toPaper Mill

21%

Traceable toPulp Mill29%

TFT helps us review information we obtain from our
supplier surveys, and combines that with geography
and industry-specific knowledge to conduct “desktop”
risk assessments of our supply chains. We use theseassessments to prioritize further engagement to learn
more about our suppliers’ responsible sourcing andsustainable forestry practices. This deeper engagement
could take the form of a series of web conferences,in-person meetings, or field assessments at the mill and/or forest level. We do not limit this engagement to ourdirect suppliers. In fact, as appropriate, we will work
directly with tier two or tier three suppliers on policy
conformance verification work, with a goal of involving
our direct (tier one) supplier(s) in these activities
whenever possible.
With TFT, we have conducted 11 field assessments so
far across all regions. Three of those assessments wereof tier two pulp mills, which were also attended by atier one supplier. 3M’s participation on supplier field
assessments with TFT helps us to understand first-handthe challenges faced by pulp and paper companies andforest managers around the world. This in turn enables
us to actively participate in developing solutions andpushing forward conversations about responsible
sourcing and sustainable forestry.

#improvinglives | 175

How We Work | Suppliers

Pulp and Paper Assessment

Completed• Austria (1)• Brazil (1)• Canada (2)Collaboration for change

Looking forward…

3M Brazil is a signatory to The National Pact to Eradicate
Slave Labor, which was established in 2005, and is
now institutionalized in InPACTO (the Institute for the
National Pact) a trade association focused exclusively
on collaborative efforts among members, including 3M,
committed to the goals of the National Pact.

Using LSS methodologies, a project is being conducted
to develop a more efficient and effective way ofobtaining, managing, and storing supplier-related
information. The new 3M SRC Supplier Declaration
will be included as part of this project. All suppliers
will be required to complete the declaration, stating
they understand the SRC and that they and theirsubcontractors will have programs and practices
that are consistent with the SRC. The process will berolled out globally in 2018, reflecting the increased
supplier expectations related to Labor, Ethics, EHS, andManagement Systems.

• China (3)• Japan (1)Supplier of the Year Award• Sweden (1)• Taiwan (1)• United States (1)In 2017, 3M recognized 15 top suppliers among
thousands in its global supply base, for world classperformance in providing products and/or services.
These suppliers were identified and rated based on
strategic spend, contract compliance, actions taken
to improve 3M’s relevance, and overall supplierperformance (quality, delivery, responsiveness, cost,
technology, and Sustainability roadmaps).

Planned• Brazil• Chile• Russia

Each assessment results in a comprehensive reportdetailing the supplier’s performance against ourpolicy requirements, and action items to address any
performance gaps. We expect each supplier to develop
corrective action plans with reasonable timelines,
and continue to collaborate with 3M on resolution ofidentified opportunities. More information on theseassessments can be found in our Pulp and Paper
Sourcing Policy progress reports.

Conservation in the Carolinas
In May, 3M helped launch the Carolinas Working Forest
Conservation Collaborative (CWFCC) along with theAmerican Forest Foundation, International Paper, and
The Procter & Gamble.
We have joined this collaboration to engage directly withfamily woodland owners in the U.S. Coastal Carolinas
Plain to support sustainable forestry, conservation ofbottomland hardwood forests, and the enhancementof habitat for at-risk species. Through the CWFCC, we
intend to accomplish the following objectives:•

Increase awareness and understanding of theimportance of sustainable forestry and active
management among 30,000 woodland owners
who collectively own 2.4 million acres of forestland
in the Coastal Carolinas Plain region

176 | 3M 2018 Sustainability Report•

Work with at least 450 landowners across 36,500
acres in the project counties to connect them withtechnical assistance and resources to get themstarted in forest management•

Engage at least 160 woodland owners within
the project area to enhance, restore, or expand
bottomland hardwood forests and quality habitat
for at-risk species on at least 13,000 acres•

Certify at least 120 landowners in a recognized
forest certification standard

Responsible Paper Summit
in Shanghai
In November 2017, 3M co-sponsored a Responsible
Paper Summit in Shanghai, China. Over 40
representatives from more than 20 pulp and paper
product producers in the greater China area attended
two days of discussions on what it means to be partof a responsible and sustainable global paper supply
chain, and how to advance sustainable forestry andresponsible paper sourcing in the Asia Pacific (APAC)
region. An impressive list of ideas and proposed actions
were generated during this summit, and has resulted in
momentum toward more engagement and sustainable
practices throughout these organizations and their
supply chain partners.

Learn more about the Supplier of the Year Award: here.

We recognize there are risks in the supply chains ofother materials. Through our partners like RMI, TFT,
and InPACTO, we are continuing to increase ourunderstanding and options to mitigate risks throughcollaboration. For example, RMI is actively working on
formulating risk mitigation tools for the cobalt industry.
3M is committed to expanding our due diligence efforts
for higher risk materials to further mitigate risk to ourbusiness and advance responsible supply chains.

Pulp and Paper Sourcing Policy
Engagement Status, Percentage
100

80

60

40

Product Paper

20

Packaging Paper

0Overall

2015

2016

2017

#improvinglives | 177

What We
Create178 | 3M 2018 Sustainability Report

Introduction180

Our Customers

182

Innovation Management

188

Our Products

198#improvinglives | 179

What We Create | Introduction

Introduction
What We Create
Our customers’ challenges are our challenges. Using our
46 technology platforms and collaborative culture, weinvent products that help our customers solve the issues
they are facing in many areas, including health, safety,
and energy.
We are not stopping here. We have establishedaggressive goals for 2025, ranging from investingin sustainable materials and energy efficiency, tocommunity-wide approaches to water management
and helping our customers reduce their greenhouse gas
emissions. We have also set 2025 goals around building
a diverse workforce and educating individuals on worker
and patient safety in healthcare and industrial settings.

180 | 3M 2018 Sustainability Report#improvinglives | 181

What We Create | Our Customers

Our Customers
3M science impacts the world aroundus in real ways every day.
Our Commitment
We leverage our 46 core technology platforms to
improve lives in a variety of ways. 3M is:•

The light management technology making roadsigns brighter and easier to read, and electronic
displays more vivid and colorful…while drawing
less power•

The adhesive technology holding your car, hotel,
and cellphone together; our adhesive platform isapplied in many other areas, from medical dressingsand dental fillings to Scotch® tapes and Post-it®
notes

•

The filtration technology that protects people’s
health and safety, from respirators and masks forindustrial and health care workers to air filters andwater treatment systems for home

182 | 3M 2018 Sustainability Report

3M has the resources, reach, and responsibility to
improve the marketplace and society.

Where many companies view the topic of Sustainability
in product development as a challenge, at 3M we havetaken an offensive approach, working to identify andunderstand future Sustainability needs, and to expand
our portfolio of products with Sustainability advantages.
By embedding Sustainability into our research anddevelopment (R&D) process, our brands and the mindsetof our suppliers and customers, we’re able to move 3M’s
growth to new levels and advance our commitment toimproving our business, our planet, and every life.

2025 Goal: Invest to develop more sustainable
materials and products to help our customers reach
their environmental goals.

#improvinglives | 183

What We Create | Our Customers

We recognize some of our greatest positive impact
can be realized by helping our customers improve theirenvironmental footprint. For that reason, an increased focus
on delivering more sustainable materials and components
is core to our innovation and Sustainability strategy.

2025 Goal: Provide training to five million people
globally on worker and patient safety.

We will continue to support empowerment andenrichment for global health and safety issues throughour commitment to improve the health and safety ofpeople worldwide so we can all focus on what mattersmost to us. To measure progress against this goal, we
will track the number of training instances through our
Health Care and Personal Safety Academies.

Our Actions
We have an initiative called Customer First that’s allabout understanding our customers’ business models,
what they have promised their customers, and what
our role is in the value chain. Found throughout our 3M
Playbook, it is helping our customers deliver on theirpromises. It is our Vision, as we aspire to advance every
company, enhance every home, and improve every life.
Here are some examples of our Customer First approachin action.

Business Transformation starts and ends
with our customers
3M Business Transformation leverages our strengths
in technology, manufacturing, and global capabilities,
to provide a more positive overall experience for ourcustomers. This transformation centers around thecreation of one global, seamlessly integrated platform
coupled with standardized business processes,
resulting in:•

Improved service delivery•

On-demand capabilities•

Better responsiveness•

Enhanced collaboration•

Increased customer intimacy

184 | 3M 2018 Sustainability Report

In short, Business Transformation is helping us build
strength on strength, drive to higher levels of customer
satisfaction, and to:•Move to a simpler, more automated environment•

Standardize global, end-to-end processes•

Leverage Lean Six Sigma (LSS)•

Strengthen governance

Leveraging unique capabilities to create
value for our customers
Technology itself is not sufficient to create differentiatedproducts and solutions. Our innovation truly comesfrom the confluence of customer and market insights,
technology, and our culture of collaboration andentrepreneurship. We strive to invent things that are
not only new, but useful. That is why collaborating withcustomers is essential. It assures we are in tune with
their needs. Our most successful products are infusedwith strategic customer insights throughout the entire
product development process.

Two different models forgathering insights“Customer-inspired innovation”
Back in the 1920’s when one of our scientists visitedthe local body shop of a customer, he watched workers
struggling to get clean lines for two-tone paint jobs. His
observation led to the invention of Scotch® masking tape.

3M’s market-leading medical Tegaderm™ transparent
dressings, which fit snug, breathe easy, and allow for
painless inspection.

“Insights to Innovation” (i2i)
3M works “eye-to-eye” with end-user customers toinvent solutions to their unique problems.
This model often makes use of the 3M Insights toInnovation process, a process that involves exploration,
optimization, validation and ideation, and ultimately
allows new business teams to move from “I think” to“I know.”
Insights to Innovation includes a close focus on bothglobal and local megatrends. The way we look at it, withnew market needs come new opportunities to deliver
value to our customer.

Technical capabilities close
to customers
As an organization, we believe that the best way toacquire insights is to be close to the customers. With
that in mind, we have built a large global presence andinfrastructure as well as technical capabilities close to
our customers.

We have 54 customer technical centers across theglobe where our customers can experience firsthand thebreadth of 3M technologies and how they can benefit
from them. We also have labs in 36 countries where ourscientists work closely with our customers to develop
solutions for their specific problems.
Some of the problems addressed in our technical centersand labs are connected to regional and local megatrends.
Globally, for example, rapid population growth inurban areas is creating challenges related to energy
efficiency, clean water, and environmental protection.
Our local scientists leverage our technologies to develop
relevant solutions that are unique to their region, often
collaborating with local customers.

Addressing customer
Sustainability expectations
We know many of our customers have strong
Sustainability and corporate responsibility expectations
for their suppliers, just as we do for ours. 3M always
wants to be the supplier of choice for our customers.
As demonstrated in this report, we set our sights on
world-class performance in Sustainability and corporate

Technical Capabilities Close to Customers
54 customer technical centers and labs in 36 countries.

Today, in 36 international labs – and in 54 technicalcenters – our scientists work directly with local
customers to solve their unique challenges. We take thetime to get to know them, to learn how they live andwork – and to understand what we can do to improvetheir lives.
This includes challenges our customers have cometo us for help with, as well as challenges they didn’t
even know they had, as the 3M scientist behind ourcreative medical dressings can tell you. His division had
a program that allowed scientists to be embedded in a
hospital for an entire week. While there, he observed
nurses repeatedly lifting up bandages to inspect wounds
and intravenous (IV) sites. A simple idea struck him:
Why not make the bandage transparent? That led to

Customertechnical center
Laboratory

More than 100,000 customers visited this year.

#improvinglives | 185

What We Create | Our Customers

responsibility, and we believe we meet or exceed
customer requirements in these areas.
As proud as we are to share our Sustainability story
with our customers, we are also motivated to influenceand encourage alignment and harmonization among theproliferation of industry standards and partner to drive
real Sustainability improvements where they are needed.

Education that inspires,
credibility that empowers
Proper use of health and safety products is critical toinfection prevention, personal safety, and overall health.
Building on our existing customer education program,
we seek to enhance access to training on worker andpatient safety in both healthcare and industrial settings.
Through the 3M Academy, learning is designed tosuit the users: on-demand education, live webinars,
in-person events, and education resources. Our site or
yours, training delivered where and when you want it
and in the way you need it.
As a manufacturer of health care devices and supplies,
3M not only provides great products, we also deliver
education and training on worker health and safety andto health care professionals at hospitals and clinics,
professional conferences, and via online webinars – allaround the world, through the 3MSM Health Care
Academy. In 2017 alone, we offered over 350 learning
modules. That’s not only important to helping customers
get the most out of our products, it’s our commitment
to helping professionals improve outcomes for theirpatients and customers.
The same holds true for our Personal Safety Division
where we understand the most important part ofevery product is keeping people safe and healthy. Ina rapidly evolving business and occupational healthand safety landscape, one thing remains the same,the need for effective training and education to help
create and maintain a healthy and safe workplace. Our
education and training programs can instruct workers
on: workplace safety hazards and health risks; regulatory
personal protection equipment (Occupational Safety
and Health Administration, OSHA); and proper use andmaintenance of 3M products. This includes a mobile
training and demonstration center in the U.S. that willappear at numerous locations thought out the year.
186 | 3M 2018 Sustainability Report

Looking forward…
To succeed in today’s fast-moving world, we must
continue to see around the corner to where the market isgoing. We gain insights by understanding megatrends:•

Reimagining natural resources: supply and demandof natural resources, including fossil fuels, minerals,
renewables, water, and food will experience a
powerful transformation•

Shifting demographics: a gradual but powerfulshift in the composition, location, and sheer sizeof the Earth’s population is at the core of nearly allobservable global trends•

Expanding digital economy: digitization isfundamentally changing how businesses andindividuals interact, make decisions, and conduct
daily operations•

Evolving economic landscape: the center of world
economic influence is transitioning from dominanceof developed countries toward an increasingly
multipolar environment#improvinglives means making
life easier and more productive athome and at work.
We are creating innovative products that keep homes clean,
offices organized, and buildings well-maintained.

We will continue to leverage our diversified technology
portfolio to create innovative solutions for our customers
and markets. We are evolving our technology platforms
for the changing and anticipated needs of high-growthmarkets, and we are augmenting our material science
expertise with digital where appropriate to create value
for our customers and for 3M.

Educating customers on worker andpatient safety
We will continue our efforts to drive growth by engaging
our customers in a trusted, best-in class education
offerings and delivery systems. In 2018 and beyond, ourfocus is to provide our customers and partners relevant
and timely education in a contemporary, flexible format.
We look to create value for our customers and partners
through workforce development and retention, andpersonalization, through an efficient global platform.
This will expand upon current online and in-person
events via eLearning webinars, modules, and productapplication training. This efficient global education
platform also will help promote accurate and transparent
reporting as we strive toward our 2025 worker andpatient safety training goal.

Consumer#improvinglives | 187

What We Create | Innovation Management

What We Create | Innovation Management

Innovation
Management
Applying science to solve problems
and improve lives.
Our Commitment
At 3M, we believe science is just science – until you
use it to improve the world. That is
3M Science. Applied to Life.™
We are a company rooted in scientific exploration anddiscovery. We believe that every problem has a solution.
All our businesses are connected by our fundamental
strengths – technology, manufacturing, global
capabilities, and our brand – which allow us to invent,build, and sell products across our vast global network.
Research and development (R&D) is our heartbeat. We
continue to invest in R&D, in close partnership with ourcustomers and the marketplace. R&D fosters a constantstream of unique and cutting-edge products, which driveorganic growth. In fact, in 2017, we invested 1.87 billion(USD) or nearly 6 percent of our sales back into R&D. We
are committed to continue our investment in R&D.
There are no silos – our 46 technology platforms areshared and combined across businesses and regions to
188 | 3M 2018 Sustainability Reportinvent unique products for a variety of industries. No
single business owns any of these platforms. They are
owned by the company and can be leveraged by anyof the businesses to serve their respective customers
or markets.
Our “15% Culture” – instituted six decades ago – inspires
creativity, risk-taking, and collaboration. It gives 3Mers
the freedom to take risks, and learn from our mistakes.
That freedom is essential to scientific discovery. 3Mers
have the freedom to spend 15% of their time on projects
that interest them. Out of that time come new ideas thatmight eventually become successful new 3M products.
3M has earned more than 109,000 patents over theyears, a testament to the strength of our innovationengine. Every year, on average, 3M earns 3,000 patents.
We are in nearly 200 countries, with two thirds of
our workforce and sales outside the U.S. Employing
integration and collaboration across businesses,
geographies, and scientific disciplines helps us effectively
and efficiently bring new ideas and products from the labto the factory to customer’s homes and businesses.
#improvinglives | 189

What We Create | Innovation Management

With operations in about 70 counties, we can serve
our customers wherever they are. We are expanding
our technology capabilities around the world. We
collaborate with customers to discover solutions
together and identify challenges that they may not beaware of, finding answers by utilizing 3M’s technology,
manufacturing, and global capabilities.
The policies and standards that guide the design,
manufacture, and marketing of 3M products share acommon foundation: the 3M Code of Conduct.
The Code of Conduct is an overarching guide to theappropriate decisions and actions of 3M individuals andteams as they go about their work. It defines our values
and the responsibilities 3M employees and 3M suppliers
have to live up to them.

Product Safety, Compliance,
and Stewardship Policy
3M’s Product Safety, Compliance, and Stewardship
Policy underscores our commitment to commercializing
and selling products that are safe for their intendeduse(s), compliant with all applicable Environmental
Health and Safety (EHS) regulations and 3M
expectations, and developed with a goal to continuously
improve the EHS performance of products andcorresponding manufacturing processes. Other
elements of this policy:
Each 3M Business Unit must maintain processes
for the effective global review of product safety,
compliance, and stewardship requirements. This
includes consideration of EHS aspects relevant
throughout the life cycle of a product, including
raw material selection, product design, formulation,
manufacture, marketing, sale, intended andanticipated use or misuse, recycling, and disposal.

•

Under this broad umbrella of values are principles that
more specifically outline what 3M believes is the ethicalapproach to various work situations, including situations
that involve innovation management of 3M products.

Business processes must be incorporated into New
Product Introduction (NPI) and Management of
Change (MOC) procedures, and product safety,
compliance, and stewardship requirements
must be integrated into the development,commercialization, and sale of 3M products.

•

Product Safety, Quality, andStewardship Principle
In the Code of Conduct, one
principle reinforces our
1427
1-3, 6
commitment to productsafety, quality, and stewardship: the Product Safety,
Quality, and Stewardship Principle. Product safety,
quality, and stewardship must always be primaryconsiderations during design, manufacture, marketing,and sales of 3M products. 3M employees must know
and follow all applicable laws, regulations, and 3M
policies, standards, and procedures for product safety,
quality, and stewardship and must report and respond toconcerns in a diligent manner. 3M management is
responsible for addressing reported concerns andensuring that 3M employees are properly trained inapplicable laws and regulations and 3M policies,
standards, and procedures.
G4

G4

G4

SD EN PRAs well, we look at it as our responsibility to produce
products with superior environmental performanceacross their entire life cycle, and to work with our
suppliers and business partners so that their operations
support these same objectives.

190 | 3M 2018 Sustainability Report

Hazard Communication andComposition Disclosure
Communicating the potential hazards of 3M
materials supports 3M's core values and is an
2-3, 6integral part of keeping stakeholders informed
about 3M materials. The vehicles for communicatingthese hazards and product chemical components
include Safety Data Sheets (SDS), product labels,
product literature, transportation classification
documentation, and other communications tools. Eachbusiness unit must evaluate the potential hazards of 3M
materials and transmit, in local country language(s),information about the hazards to employees,
contractors, and customers, to meet all regulatory
requirements and 3M standards and guidelines, and topromote informed decisions about the materials’ properand safe handling, use, and disposal.
G4

PR

Alternatives to Animal Testing
3M is a major advocate for the use of alternative test
methods (non-animal) to help develop safe products
wherever practical. 3M is currently utilizing many ofthese alternative methods, such as computational
toxicology and in vitro testing using isolated tissues orcells. We are also investing in the internal and external
development of new methodologies that replace animal
testing. Where animal testing is required, we follow ourAnimal Welfare in Testing and Research Policy.

Our Actions
To understand 3M you have to understand our four
fundamental strengths which are leveraged across theentire enterprise: technology, manufacturing, global
capabilities, and our brand.
We are not a conglomerate with distinct anddisconnected businesses. Our model is different. All ourbusinesses are connected by these four strengths whichallow us to invent, build and sell products across our vast
global network.

Additional policies
G4

PR

3, 6

• Human Subject Research Policy• Advertising/Product Representation Policy

3M’s Fundamental Strengths

Technology

Manufacturing

Global Capabilities

Brand

Ability to share andcombine elements of 3M’s
broad technology portfolio
to produce unique,differentiated products,
translating to premium
margins.

Utilization of 3M
manufacturing footprint
and technology, including
process trade secrets,
leading to higherperforming products andlower unit costs.

Subsidiary front andback office footprint thatallows for the effective
development, adaptation,and commercialization of
products.

Brand equity in the 3M
brand and in strategic
brands that are sharedacross business groups.

#improvinglives | 191

What We Create | Innovation Management

Leveraging Technologies Across Our BusinessTechnology Programs
3M science is comprised of 46 technology platforms, ranging from adhesives
and abrasives, to microreplication, and nonwoven materials.

Ad
Adhesives

Ab
Abrasives

Ad
Adhesives

Am
Advanced
Materials

Md

Fi
Films

Medical DataManagement

Fl

Fluoromaterials

Ec

Mf

EnergyComponents

MechanicalFasteners

Ce

Nt

Ac

Fe

Mi

Ceramics

Nanotechnology

Acoustic Control

Flexible Electronics

Microbial Detection
and Control

Co Nw Mo
Advanced
Composites

Nonwoven
Materials

Do

Po

Dental andOrthodontic Materials

Porous Materials
and Membranes

Em Sm

Electronic Materials

Specialty Materials

Materials

Rp

An

Mr Pm

Su

Microreplication

Surface
Modification

Molding

Pd

Particle andDispersion Processing

Pe

Predictive Engineeringand Modeling

Polymer
Processing

Pp

Precision Processing

Radiation
Processing

Vp

Vapor Processing

Processing

Flexible Convertingand Packaging

Process Design
and Control

Pr

Bi
Biotech

Filtration, Separation,
Purification

As

In

Se

Dd

Im

Application
SoftwareInspection andMeasurement

Sensors

Drug Delivery

Imaging

Is

We

Di

Analytical

Es

Electronics andSoftwareFc

Integrated Systems
and Design

Accelerated
Weathering

Capabilities

Our Technology
These technology platforms are owned by the company.
Development teams within each of our businesses
and corporate research laboratories draw from thesetechnologies to develop unique solutions for theircustomers and markets.
Here’s an example of how one 3M technology platform,
adhesives, is applied to different markets through ourvarious businesses.
We engineer our adhesives to be strong enough to holdplanes, cars, and hotels in one piece.

Display

Fs

Safety & Graphics

Health Care

Electronics & Energy

Consumer

Structural
adhesives andbonding tapes

Scotchlite™ reflective
material and car wraps

Medical tapes anddressings

Electronics assembly
liquid adhesives andtapes

Post-it® notes, Scotch®
tapes, Command™
stripsOp

OpticalCommunications

Tt

Track and Trace

Lm Wo

Light Management

Industrial

Wound
Management

Applications

New-to-the-World Solutions from Combining Technologies

And versatile enough to virtually eliminate the needs
for screws inside your smartphone, making it stronger,
lighter, and more durable.
And of course, our adhesives are found in the 3M
products you’re most familiar with like Post-it® Notes,
Scotch® Tape, and Command™ Strips.
Imagine: that’s just one technology. There are similar
stories with each of the 46 platforms.
Imagine, too: if a single technology platform can beleveraged in that many ways and across that manymarkets, think of the endless possibilities when we
combine them.

High-Performance
Window Film

Ad
Adhesives

Fi
Films

Nt
Nanotechnology

Medical Dressings

Lm

Light Management

Ad
Adhesives

Fi
Films

Sm Wo

Specialty Materials

Wound
Management

Fc

Flexible Convertingand Packaging

Su
Surface
Modification

Filtek™ Dental Adhesives,
Restoratives and Crowns

Nw
Nonwoven
Materials

Pm
Polymer
Processing

Am Ce
Advanced
Materials

Ceramics

Co

Bi

Advanced
Composites

BiotechNt
Nanotechnology

Pd

Particle andDispersion Processing

Do
Dental andOrthodontic Materials

Su
Surface
Modification

At the same time, we engineer them to be gentle
enough for human skin… as you’ll find in our medical
tapes and dressings.

192 | 3M 2018 Sustainability Report#improvinglives | 193

What We Create | Innovation Management

Driving success today, whilebuilding for the future.
We are always making investments to make ourcompany even stronger, which includes our technology
capabilities. That is why we invest close to 6 percent of
our sales in R&D, which in 2017 equaled $1.87 billion.
As our Chief Executive Officer says, he leads 3M
with one eye on the microscope – driving results day
to day, month to month, quarter to quarter –and theother eye on the telescope, making sure we are making
investments for five, 10, 15 years down the road.

Product Design Criteria
In 2017, we have been working to bring additional clarity
and consistency to the policies and standards that
support the Product Safety, Quality, and Stewardship
Principle.

Product Stewardship Audits
3M has been on the leading edge of productstewardship audits, beginning with self-assessments ininternational regions in 2007, and incorporating global
on-site audits in 2014. These audits evaluate, among
other elements, product hazard and risk assessment,chemical control, lifecycle management, and consumer
product safety. The goal of these audits is to assure that
regions are meeting corporate standards, and to share
best practices globally.

Collaboration
One of many things that makes 3M a singular company
is our commitment to collaboration. There are no silos
here. We collaborate with each other. Across businesses.
Across technologies. Across oceans and continents.
Case in point: the 3M Tech Forum, a self-directed andself-organized catalyst for the 10,000-plus people in 3M’s
technical community. Begun more than 60 years ago,
the Tech Forum gives 3M researchers the opportunity tocompare notes with global colleagues, collaborate aroundthe company’s 46 technology platforms, and develop

194 | 3M 2018 Sustainability Report

NTI Framework
new ideas that fuel the 3M innovation pipeline. The
collaborating takes place at an annual global event, spring
symposiums, recognition programs, and many chapter
events held throughout the year. Included among ourTech Forum chapters are the Global Product Stewardshipand the Green Chemistry chapters.

Identify
the market
opportunity

Identify
superior productconcepts to meetcustomer needs

Developthe technicalsolution

ExploreQualify

DeployDeliver efficient growth

Make

LaunchConcept

Feasibility

Develop

Scale Up

Identify
the market
opportunity

Identify
superior productconcepts to meetcustomer needs

Developthe technicalsolution

Optimize productand test customer
acceptancePrepare for launch

ExecuteNPI Framework

Product StewardshipResponsibility for product stewardship at 3M isshared across a broad spectrum of functions
1
positioned within businesses, regions, andcorporate staff groups. Together, individuals across thisspectrum work to support 3M's core value of respect forour social and physical environment.
G4

PRLife Cycle Management

Life Cycle Management
Life cycle management (LCM) is 3M’s approachto assuring that EHS and associated regulatory
considerations are integrated into the development
and commercialization of 3M products through 3M’s
NPI process. At each of the seven phases of NPI, ourbusiness teams provide LCM deliverables. Likewise,
we evaluate LCM impacts from product modifications
through our corporate Management of Change process.
We leverage these LCM processes to continuously
improve the EHS performance of our products.

Manage changes

Idea

Our New Technology Introduction (NTI) framework
helps us manage the design and development of a newtechnology which may be used in several different
new products.

Together, 3M’s NTI and NPI processes provide acommon framework for technology and productcommercialization for all global business. Informationis required at every step, or gate, in the process, alongwith deliverable tasks. Having consistent practices
throughout the company for technology and productcreation assists in risk analysis by providing a common
language from which to share tools and best practices
and manage project portfolios.

Post-Launch

CreateBy leveraging strategic partnerships with several
stakeholders internally and externally, 3M is able totransform diverse ideas and creativity into superior
technologies, business assets, and innovative
product platforms.

Meanwhile, our seven-phase New Product Introduction(NPI) process provides the robust framework fordeveloping products from idea to launch.

Commercialize

Research &Development
Raw Materials
Acquisition

Manufacturing& Production

Disposal
Recycling

Distribution &Transportation
Protect Use& Reuse

Product Responsibility Liaisons (PRLs) or ProductStewards, embedded within 3M businesses and countriesof operation, act as champions of EHS, regulatory, andSustainability. They help assure our products meetor exceed requirements stemming from 3M policies,
governmental regulations, and from our customers.
In 2017, we continued our efforts to further enhancethe extent to which our new products improve lives insocio-environmental terms. For example, we introduceda Sustainability Attributes Analyzer tool 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. This builds on our longstanding LCM process to further integrate Sustainability
into the core of who we are at 3M.

Life Cycle Assessments (LCA)
In addition to the LCM program which applies to all 3M
products, we also complete ISO 14040-compliant LCAs
for select 3M products. At 3M, we primarily complete
cradle-to-gate LCAs, since the majority of our products
have use and disposal life cycle stages that are difficult
to characterize. We also complete cradle-to-gate LCAs

#improvinglives | 195

What We Create | Innovation Management

for a number of internally-produced chemicals thatare used in manufacturing of 3M products. While it is
not possible to complete full LCAs for all 55,000-plus
unique 3M products, evaluation of these intermediates
allows us to have a better understanding of thepotential environmental impacts of key components
and processes.

Global certification of our
LCA process
In 2017, 3M LCA teams in the U.S. and Europe renewed
their process certifications from The International EPD®
System to demonstrate that appropriate procedures arein place to produce scientifically-sound, technicallydefensible LCAs and EPDs (Environmental ProductDeclarations). Rather than conduct independent
third-party reviews for each individual product LCA
or EPD, the teams will continue to undergo an annual
recertification process which evaluates conformance of
the underlying management system with the program
rules and ISO standards. This global certification of
the LCA process for multiple parts of our organizationis thought to be the first of its kind. It streamlines ourprocesses and reduces time and cost, which enables
us to complete LCAs for a larger portion of our diverse
product portfolio.

Lifecycle approach inpackaging design
In 2017, we continued our long-standing
commitment to efficient paper and packaging
28
use. Over the last four years, globally, we have
reduced designed packaging weight of more than
12,000 metric tons, over half of which has come frompaper-based packaging.
G4

EN

Packaging Solutions provides continuous support
throughout the value chain: collaboration with 3M R&D
on potential packaging solutions; work with suppliers to
optimize incoming packaging; work with supply chain tominimize scrap packaging and support sourcing’s efforts
to audit; and tracking conformance of top suppliers.

Looking forward...
In 2018, we will be implementing our newly adopted
Chemical Management Policy. This policy reflects theevolving values of 3M and our stakeholders. Under thispolicy, to continually improve the EHS attributes of our
products, 3M had identified specific chemicals whose
use in products and manufacturing processes is subject
to approval by the Corporate EHS Committee.
Building on our legacy of environmental stewardship,
we are actively enhancing Sustainability in 3M productdevelopment, new product introduction (NPI), anda redesigned version of Life Cycle Management(LCM). As part of this effort, we are looking at global
Sustainability issues as a source for innovation, moresustainable component selection as well as chemical
and Sustainability touchpoints in NPI. In 2018 and 2019,
we expect to be able to identify 3M products that carry
Sustainability advantages and to enhance customer
visibility of 3M chemical management achievements.

#improvinglives means enabling aconnected world from energy andthe grid to electronics.
We are dedicated to creating products that improve not just theelectronics we have today, but our ability to innovate and advancethe technology of tomorrow - from efficient electronic devices,to assuring reliable sources of power.

We will continue to deploy our “7 R” approach tosustainable packaging – remove, reduce, reuse,recycle, renew, revenue, and research – and identify
opportunities to integrate life cycle thinking andprocesses into packaging development. We will also
work with key suppliers to identify opportunities on
Sustainability initiatives and continue collaboration
efforts with cross-functional stakeholders.

Packaging Solutions support starts early at 3M, withengagement within our NPI and LCM processes. In aneffort to help 3Mers design packaging using a lifecycle
approach, a new model was piloted in 2016 through2017. This model demonstrated encouraging results andwill be deployed in 2018.

Electronics & Energy
196 | 3M 2018 Sustainability Report#improvinglives | 197

What We Create | Our Products

Our Products
We bring all of our solutions
to different markets throughour five business groups, which
increases speed and efficiency
by sharing technology,
manufacturing, marketing,and other resources across all
business groups.

$31.7 billion sales

G4

SD

4, 8

198 | 3M 2018 Sustainability Report

Consumer
Making life easier and moreproductive at home and work
Supplying an array of innovative products thatkeep homes cleaner, offices organized, andbuildings well-maintained, our consumer businessis home to some of our most iconic brands andwell-known products, including Post-it,® Scotch,®
Scotch-Brite,® Filtrete,™ O-Cel-O,™ Nexcare,™
and Command.™

$4.59 billion sales#improvinglives | 199

What We Create | Our ProductsElectronics & Energy

Industrial

Advancing a connected world

From purification to aerospace, wechange how industry works

We turn 3M technology into difference-making
solutions for customers in electronics and energy
markets around the world. We contribute toreliable sources of power including solutions that
improve the dependability, cost-effectiveness,and performance of electronic devices; electrical
products, including infrastructure protection, andpower generation and distribution helping connect
the world’s power grid.

We provide thousands of innovative products
including tapes, abrasives, adhesives, specialty
materials and filtration systems to dozens ofdiverse markets – from aerospace and automotive
to purification and construction to generalmanufacturing. All, with a transformed approach
to customer engagement.

$5.16 billion sales

Health Care

Safety & Graphics
From preventing infections andprotecting wounds, to improving oral
health and ensuring food quality
Supplying innovative and reliable products that help
health care professionals improve the quality andefficiency of care, we are a global leader in medical
and oral care products, and drug delivery and healthinformation systems. We are also bringing enhanced
contaminant screening technology to the foodsafety table.

$5.81 billion sales
200 | 3M 2018 Sustainability Report$10.9 billion sales

From protecting people andimproving road safety andmobility to enhancing visual anddesign communication
Our products – personal protective equipment,
safety and security products, track and trace
solutions and more – increase the safety, security,and productivity of people, locations and systems
around the world. Also, we inspire creative
communication and design with a broad portfolioof graphic solutions that enhance visual impact.

$6.15 billion sales#improvinglives | 201

AboutReportReport Scope and Boundaries

204

GRI Index and UNGC

208

Assurance Statement

220

Metric Tables

226

About Report | Report Scope and Boundaries

About Report
Report Scope and Boundaries
Report Schedule and Period
Current Issue: May 8, 2018
Next Issue: Scheduled for May 2019
Previous Issue: May 9, 2017
Before 2010, 3M’s Sustainability Report was a fully
integrated website. Therefore, copies before 2010 are
not available.
This report provides a summary of the activities in fiscal
year 2017 (January 1, 2017, to December 31, 2017).

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

204 | 3M 2018 Sustainability Reportand fully integrated onto 3M systems. All data includedin the report is global data unless otherwise specified.
Any significant organization changes are identified in the
Annual Report 2017 and 2018 Notice of Annual Meeting& Proxy Statement.

Data Collection, Adjustments,
and Verification
The data provided in this report through facts andfigures is based on activities during 3M’s fiscal year
2017. For some performance indicators, the previous
year’s data are 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 and#improvinglives | 205

About Report | Report Scope and Boundaries

assumptions are stated as information in the report.
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 inthis report is collected and reported in accordancewith the United States Securities and Exchange
Commission through the Annual Report 2017
Environmental, Health and Safety (EHS) Data: The
EHS data in this report is related to release to theenvironment, safety performance, management
systems implementation and regulatorycompliance. Data collection systems are in place atapplicable sites to track and collect environmental,
health and safety data through the 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 Resources and 3Mgives
organizations. The data have been reviewed
and verified by the departments responsible formaintaining the internal reporting systems
Responsible Sourcing Systems and Data: The
policies and management systems implementationin this area has been reviewed and verified by
the departments responsible for maintaining theinternal reporting systems

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 andsite systems before being acquired; however, on average
integration ranges between one to three years.

Base Year and Other
Adjustments
3M’s Annual Report 2017 and Investor Relations website
document any changes to financial data. Several of 3M’s

206 | 3M 2018 Sustainability Reportenvironmental goals are normalized per net sales. 3M
does not adjust sales data for inflation.
3M generally does not adjust its base-year
environmental metrics data to reflect changes in
3M’s organizational structure. As a result, 3M sets
environmental targets that are normalized or indexed
to production (tons emitted or net sales) to assure 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.
Whenever feasible, 3M adjusts base-year and otheryears’ data if data collection methods change or data
errors are identified. Any significant changes in themeasurement methods and/or data values applied to key
environmental metrics from previous years are disclosed
in the report. Significant changes are defined by 3M’s
Sustainability Report as changes greater than 5 percentof the original data point.
Reporting year 2017 unionized global workforce value is45 percent lower than previously reported in last year’s
Sustainability Report. This change is due to an improved
internal global database system and potential historicalcalculation error. This change was identified during aninternal audit.
Between 2005 and 2010, 3M adopted a holistic
definition of waste to drive the company’s waste
reduction efforts toward more sustainable solutions,such as pollution prevention. 3M’s waste reduction goaland progress during this period included recycling. In
2011, 3M returned to a more conventional definition ofwaste that considered recycling as neutral (contributing
neither toward total waste nor toward good output).
3M’s 2025 goal program utilizes 2015 as the base-year.
Starting with this program, waste disposed and waste
by disposal type does not include waste-to-energy.
Total hazardous and total non-hazardous includes
waste-to-energy.
Reporting year 2016 offsite reuse values represented
in this report are 5.8 percent lower than previously
reported in our 2017 Sustainability Report. This change
is due to a data error identified during an onsite audit andreview of our internal definition for offsite reuse values.

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

Accuracy and completeness of data•

Reliability of systems used to measure andrecord 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, 2017 to
December 31, 2017. Bureau Veritas provided moderatelevel of assurance in accordance with AA100AS-2008,
Type 2. Bureau Veritas’ assurance letter can be found in
the report under Assurance Statement.

Global Principles andGuidelines
Global Reporting Initiative
The Global Reporting Initiative (GRI) is a networkbased organization 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 the Annual
Report 2017, 2018 Notice of Annual Meeting & Proxy orother noted sources on 3M’s Investor Relations website.

education and development. 3M self-declares the 2018
report as “In Accordance-Core”.

United Nations Global Compact
Communication on Progress
The United Nations Global Compact is a strategic policy
initiative for businesses that are committed to aligning
their operations and strategies with 10 universally
accepted principles in the areas of human rights, labor,
environment, and anti-corruption. 3M committed to theUnited Nations Global Compact principles in early 2014.
This report includes an index of our Communication
on Progress implementing the 10 principles as well asalignment with the United Nations 2030 Sustainable
Development Goals (SDGs) within the content of this2018 Sustainability Report.

Global Reporting Initiative
Reporting Guidelines
3M has developed this report using the Global Reporting
Initiatives’ G4 Guidelines. The GRI Index table outlines
where specific GRI reporting elements and indicators
are addressed in the report.

United Nations Global Compact
Principles and 2030 Sustainable
Development Goals
Refer to the GRI Index table for cross-references ofcontent in this report with the 10 Principles of the United
Nations Global Compact, as well as alignment with theUnited Nations 2030 Sustainable Development Goals(SDGs).

Contact 3M
It is through collaboration and partnerships that
3M can accelerate Sustainability in our company toimprove every life. You can contact 3M Sustainability at
Sustainability@mmm.com.

Our material aspects are identified in the GRI Index andreflected in our 2025 goals with focus on raw materials,
water, climate and energy, health and safety, and#improvinglives | 207

About Report | GRI Index

SD General Standard Disclosure
GRI
Element

Global Reporting Initiative (GRI) Content Index
and UN Global Compact Report on ProgressStandard
DisclosureEC
EconomicEN

HR

Environment

Human Rights

LA
Labor
Practices

G4-1

Statement from the most senior decision-makerof the organization

Message from our Chief Executive Officer

6

G4-2

Description of key impacts, risks, andopportunities

Message from our Chief Executive Officer
Global Challenges
Materiality

6
46
48

PR
Product
Responsibility

SO

G4-3

Name of organization

3M Company

G4-4

Primary brands, products, and services

Our Products
Annual Report, 10-K, pages 4-7

G4-5

Location of the organization’s headquarters

3M Company
3M Center
St. Paul, Minnesota, United States

G4-6

Number of countries operating in, and countries
with significant operations

70-plus

G4-7

Nature of ownership and legal form

Annual Report, 10-K, page 4G4-8

Markets served

Our Products
Annual Report, 10-K, pages 4-7

198

G4-9

Scale of organization

Employee Programs
Sustainability Metric Tables
Annual Report, 10-K, pages 4-7

118
226

G4-10

Total number of employees

91,500Society

Corporate Code of Conduct
Annual Report, 10-K, page 10

Corporate Code of Conduct
Health and Safety
Sustainability Metric Tables
Annual Report, 10-K, page 4
G4-11

208 | 3M 2018 Sustainability Report

Page
(PDF)

GRI
Connections
Disclosure to UN
Level
Initiatives*

Organization Profile

GRI Index
SD

Description

Cross-Reference (Hyperlinks)
or Direct Answer

198

98

98
130
226

Percentage of employees covered by collective
bargaining

16 percent
Human Rights

106

G4-12

Description of supply chain

Suppliers

168

G4-13

Significant changes in organization during
reporting period

Annual Report, 10-K, pages 74-78

G4-14

Precautionary approach

Global Challenges
Environmental Management
Innovation Management

UNGC
Principle 6
SDG 8

UNGC
Principle 6
SDG 8

46
138
188

#improvinglives | 209About Report | GRI Index
GRI
Element

GRI
Connections
Disclosure to UN
Level
Initiatives*

Description

Page
(PDF)

G4-15

External Sustainability charters, principles or
initiatives

Stakeholders
Human Rights

72
106

Governance

G4-16

List memberships of associations andorganizations

Stakeholders

72

G4-34

Governance structure

Corporate Governance

86

G4-35

Delegation of authority for Sustainability topics

Corporate Governance

86

G4-36

Executive level position for Sustainability topics

Corporate Governance

86

G4-37

Process for stakeholder feedback to highest
governance body

Corporate Governance86

SDG 16

G4-38

Composition of board

Corporate Governance
3M Board of Directors
and Committee Composition86

SDG 5, 16

G4-39

Chair is executive officer

Inge G. Thulin, Chairman of the Board andChief Executive Officer

6

SDG 16

Corporate Governance86

Corporate Governance86

SDG 5, 16

SDG 16

Identified Material Aspects and Boundaries
G4-17

Entities in consolidated financial statement

Annual Report, 10-K, pages 4-10 and 71-75

G4-18

Process for defining the report content andaspect boundaries

Materiality

G4-19

Material aspects

Materiality

48

G4-20

Aspect boundary within

Materiality

48

G4-21

Aspect boundary outside

Materiality

48

G4-22

Effect of restatement of information

About Report

204

G4-23

Report significant changes in the scope andaspect boundaries

No significant changes to applicable
operational boundaries, scope, ormeasurement methodology.

48

List of stakeholders engaged

Stakeholders

Basis for stakeholder identification

Stakeholders

72

G4-26

Approach to stakeholder engagement

Stakeholders

72

G4-27

Key topics of concern raised by stakeholders

Materiality

48

Report Profile
G4-28

Reporting period

About Report

204

G4-29

Date of most previous report

About Report

204

G4-30

Reporting cycle

About Report

204

G4-31

Contact point for questions

About Report

204

G4-32

In accordance option

About Report

204

External assurance for report210 | 3M 2018 Sustainability Report

About Report
External Assurance Statement

Nomination and selection process for board

Page
(PDF)

G4-41

Conflicts of interest avoidance for board

Corporate Governance

86

G4-42

Governance body’s role in development ofvalues, mission statement, etc.

Corporate Governance

86

G4-43

Measures to improve board’s understanding of
Sustainability impacts

Corporate Governance

86

G4-44

Evaluation of board with respect to
Sustainability impacts

Corporate GovernanceNominating and GovernanceCommittee Charter

86

G4-45

Board’s role in identification and management of
Sustainability risks

Corporate Governance

86

G4-46

Board’s role in reviewing organization’s risk
management for Sustainability risks

Corporate GovernanceEnterprise Risk

86
94

G4-47

Frequency of the board’s review of
Sustainability risks

Corporate Governance

86

G4-48

Highest governing body’s role in reviewing
report and material aspects

Corporate Governance

86

G4-49

Process for communicating critical concerns
to board

Corporate Governance

86

G4-50

Nature and number of concerns reported
to board

This information is considered Business
Confidential.

G4-51

Remuneration policy for board

Compensation
Proxy Statement, page 29 and 56

72

G4-25

G4-33

G4-40

Description

Cross-Reference (Hyperlinks)
or Direct Answer

3M Company Board of Directors
Nominating and GovernanceCommittee Charter

Stakeholder Engagement
G4-24

GRI
Element

GRI
Connections
Disclosure to UN
Level
Initiatives*

Cross-Reference (Hyperlinks)
or Direct Answer

204
220

SDG 16114#improvinglives | 211

About Report | GRI Index
Cross-Reference (Hyperlinks)
or Direct Answer

Page
(PDF)

GRI
Connections
Disclosure to UN
Level
Initiatives*

GRI
Element

Description

G4-52

Process for determining remuneration of board

Compensation
Proxy Statement, page 31

114

G4-53

Stakeholders’ views sought for board
remuneration policies

Compensation
Annual Report, 10-K

114

G4-54

Ratio of annual compensation for highest
paid individual versus median

Proxy Statement, page 70

G4-55

Percentage increase of compensation
for highest paid individual

The ratio of Chief Executive Officer pay
to other positions is not a labor indicator
currently tracked and disclosed. Our practiceis to set pay targets at all levels, from the
Chief Executive Officer on down, based oncompetitive external market data.

G4-56

Organization’s values, principles
and standards

Corporate Code of Conduct

98

UNGC
Principle 10
SDG 16

G4-57

Mechanisms for seeking advice onorganizational integrity

Corporate Code of Conduct

98

UNGC
Principle 10
SDG 16

G4-58

Mechanisms for reporting concerns about
unethical behavior

Corporate Code of Conduct

98

UNGC
Principle 10
SDG 16

SDG 16

GRI
Element

Description

Description

G4-EC1

G4-EC2Development and impact of
infrastructure investments

Communities

64

SDG 2, 5, 7, 9

G4-EC8Significant indirect economic impacts,
including extent

Communities

64

SDG 8, 10, 17

G4-EC9Proportion of spending on local suppliers

Supplier spend by location is consideredBusiness Confidential.

Direct economic value generated and distributed2017 Metrics
3M Interactive Analyst Center226

SDG 2, 5, 7,
8, 9

Financial risks due to climate change

Climate Change and Energy
Annual Report, 10-K, page 11

156

SDG 13

118

Employee Programs
Annual Report, 10-K, pages 89-100

G4-EC4

Financial assistance received 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 9, Income Taxes, in Annual Report, 10-K,
pages 86 to 90.

G4-EC5G4-EC6

Ratio of entry level wage by gendercompared to local minimum wage

Proportion of senior management hiredfrom local community

212 | 3M 2018 Sustainability Report

3M sets and administers compensation basedon external market competitiveness without
regard to gender.
This information is considered Business
Confidential.

SDG 12

Cross-Reference (Hyperlinks)
or Direct Answer

Page
(PDF)

GRI
Connections
Disclosure to UN
Level
Initiatives*

GRI
Element

Description

G4-EN1

Materials used by weight and 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 arerecycled 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.

G4-EN3

Energy consumption within the organization

Climate and Energy
2017 Metrics

156
226

UNGC
Principle 7, 8
SDG 7, 8, 12,
13

G4-EN4

Energy consumption outside of
the organization

Climate and Energy
2017 Metrics

156
226

UNGC
Principle 8
SDG 7, 8, 12,
13

G4-EN5

Energy intensity

Climate and Energy
2017 Metrics

156
226

UNGC
Principle 8
SDG 7, 8, 12,
13

G4-EN6

Reduction of energy consumption

Climate and Energy
2017 Metrics

156
226

UNGC
Principle 8
SDG 7, 8, 12,
13

G4-EN7

Reductions in energy requirements ofproducts and services

Climate and Energy

156

UNGC
Principle 8, 9
SDG 7, 8, 11,
12, 13

G4-EN8

Total water withdrawal by source

Water
2017 Metrics

152
226

UNGC
Principle 7, 8
SDG 6

GRI
Connections
Disclosure to UN
Level
Initiatives*

Page
(PDF)

Coverage of benefits plan obligations

GRI
Connections
Disclosure to UN
Level
Initiatives*

EC Environment

Cross-Reference (Hyperlinks)
or Direct Answer

G4-EC3Page(PDF)

G4-EC7EC Economic
GRI
Element

Cross-Reference (Hyperlinks)
or Direct Answer#improvinglives | 213

About Report | GRI Index
GRI
Element

GRI
Connections
Disclosure to UN
Level
Initiatives*

Cross-Reference (Hyperlinks)
or Direct Answer

Page
(PDF)

Water sources significant affectedby withdrawal

Water

152

UNGC
Principle 8
SDG 6

G4-EN10 Percentage and total volume of water recycled
and reused

Water

152

UNGC
Principle 8
SDG 6, 8, 12

G4-EN11

Operational sites near protected or highbiodiversity areas

Water

152

G4-EN12Significant impacts on biodiversity

Environmental Management
Water
Significant impacts on biodiversity would be
discussed in our Annual Report, 10-K .

138
152

Communities
Environmental Management
Supply Chain

64
138
168

Water
3M conducts environmental assessments of
our operational sites, whereby biodiverse areas
may be identified. Where applicable, a public
database search is completed, which includes
a wetland database. Site visits also identify
rivers, creeks, potential wetlands, etc. that are
on or near the facility being assessed.

152

G4-EN9

G4-EN13

G4-EN14

Description

Habitats protected

Endangered species habitats near
operational sites

UNGC
Principle 8
SDG 6, 14, 15

G4-EN15

Direct GHG emissions

Climate and Energy
2017 Metrics

156
226

UNGC
Principle 7, 8
SDG 3, 12, 13,
14, 15

G4-EN16

Energy indirect GHG emissions

Climate and Energy
2017 Metrics

156
226

UNGC
Principle 7, 8
SDG 3, 12, 13,
14, 15

G4-EN17

Other indirect GHG emissions

Climate and Energy
2017 Metrics

156
226

UNGC
Principle 7, 8
SDG 3, 12, 13,
14, 15

G4-EN18

GHG consumption intensity

Climate and Energy
2017 Metrics

156
226

UNGC
Principle 8
SDG 13, 14, 15

G4-EN19

Reduction of GHG emissions

Climate and Energy
2017 Metrics

156
226

UNGC
Principle 8, 9
SDG 13, 14, 15

G4-EN20 Emissions of ozone depleting substances

Climate and Energy

156

UNGC
Principle 7, 8
SDG 3, 12

G4-EN21

NOx, SOx, and other significant
air emissions​

214 | 3M 2018 Sustainability Report

Climate and Energy

156

UNGC
Principle 7, 8
SDG 3, 12,
14, 15

GRI
Element

Description

Cross-Reference (Hyperlinks)
or Direct Answer

Page
(PDF)

GRI
Connections
Disclosure to UN
Level
Initiatives*

G4-EN22 Total water discharged by qualityand 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 by type anddisposal method

Raw Materials
2017 Metrics

144
226

UNGC
Principle 8
SDG 3, 6, 12

G4-EN24 Total number and volume of significant spills​

Environmental Management
3M did not have any significant spills in 2017that met the GRI definition of reportable in theorganizations financial report (due to resulting
liabilities).

138

UNGC
Principle 8
SDG 3, 6,
12, 14G4-EN25 Weight of hazardous waste

2017 Metrics
The 3M Business Conduct requirements andthe Environmental Policy require compliancewith all applicable jurisdictional laws andregulations, including those on hazardous
waste transportation.

226

G4-EN26 Water bodies affected by organization's
water discharges

3M conducts environmental assessments of
our operational sites, whereby biodiverse areas
may be identified. Where applicable, a public
database search is completed, which includes
a wetland database. Site visits also identify
rivers, creeks, potential wetlands, etc. that are
on or near the facility being assessed.

G4-EN27 Mitigation of environmental impacts
of products

Innovation Management
3M Product Safety, Quality, and Stewardship
Principle

188

UNGC
Principle 7,8, 9
SDG 6, 8, 12,
13, 14, 15

G4-EN28 Percentage of products and packaging
materials that are reclaimed

Raw Materials
Innovation Management

144

UNGC
Principle 8
SDG 8, 12

G4-EN29 Fines for non-compliance withenvironmental regulation

Environmental Management
2017 Metrics

138
226

UNGC
Principle 8
SDG 8, 16

G4-EN30 Environmental impacts of transporting
products and members of workforce

Climate and Energy
2017 Metrics

156
226

UNGC
Principle 8
SDG 11, 13

G4-EN31

Environmental Management

138

G4-EN32 Percentage of new suppliers screened using
environmental criteria

Suppliers

168

UNGC
Principle 8

G4-EN33 Negative environmental impacts in the
supply chain and actions taken​

Suppliers

168

UNGC
Principle 8
SDG 15

G4-EN34 Number of grievances about
environmental impacts

This information is considered Business
Confidential.

Total environmental protection expendituresand investments by type​#improvinglives | 215

About Report | GRI Index

HR Human Rights
GRI
Element

Description

LA Labor Practices and Decent Work
Cross-Reference (Hyperlinks)
or Direct Answer

Page
(PDF)

GRI
Connections
Disclosure to UN
Level
Initiatives*

GRI
Element

Description

Cross-Reference (Hyperlinks)
or Direct Answer

Page
(PDF)

GRI
Connections
Disclosure to UN
Level
Initiatives*

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

98

UNGC
Principle 2

G4-LA1

Employee hires and turn over

Employee Programs

118

UNGC
Principle 6
SDG 5, 8

G4-HR2

Employee training on human rights

Human Rights

106

UNGC
Principle 1

G4-LA2

Benefits provided to full-time employees

Employee Programs

118

SDG 8

G4-HR3

Incidents of discrimination andcorrective action

This information is considered Business
Confidential.

G4-LA3Return to work and retention after parental leave

Employee Programs

118

UNGC
Principle 6
SDG 5, 8

G4-HR4

Operations and suppliers in which the right tofreedom of association may be violated

Corporate Code of Conduct
Human Rights
Suppliers
3M Supplier Responsibility Code

98
106
168

UNGC
Principle 3SDG 8

G4-LA4

Minimum notice periods regarding operationalchanges

Employee Programs

118

UNGC
Principle 3SDG 8

G4-LA5130

SDG 8Operations and suppliers with risk ofchild labor

Corporate Code of Conduct
Human Rights
Suppliers
3M Supplier Responsibility Code

98
106
168

UNGC
Principle 5
SDG 8, 16Workers represented by management-worker
health and safety committees

Health and Safety

G4-HR5G4-LA6

Type and rates of injury, lost days,
work-related fatalities

Health and Safety
2017 Metrics

130
226

SDG 3, 8

G4-LA7

Workers with high incidence or high riskof 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 and effort
into keeping them safe and healthy. Our Safety
and Health Policy applies to all 3M operations.

G4-LA8

Health and safety topics covered inagreements with trade unions

This information is considered Business
Confidential.

G4-LA9Average hours of training per employee

Employee Programs
Although 3M tracks some training hours, it is
not consistent globally. 3M believes indicatorsthat align results of the people with success ofthe company are direct indicators of successful
development programs.

118

UNGC
Principle 6SDG 8

G4-HR6

Operations and suppliers with risk ofcompulsory labor

Corporate Code of Conduct
Human Rights
Suppliers
3M Supplier Responsibility Code

98
106
168

UNGC
Principle 4SDG 8

G4-HR7

Percentage of security personnel trained in theorganization’s human rights policies

Human Rights

106

UNGC
Principle 1
SDG 16

G4-HR8

Indigenous rights violations

To the best of our knowledge, there were no
incidents reported to Compliance and BusinessConduct Department related to the rights ofIndigenous people in 2017.

G4-HR9UNGC
Principle 1

SDG 3, 8

Human Rights

106

UNGC
Principle 1

G4-HR10 Percentage of new suppliers screened using
human rights criteria​

Suppliers

168

UNGC
Principle 2

G4-LA10Programs for skills management andlifelong learning

Employee Programs

118

SDG 8

G4-HR11

Negative human rights impacts in the supply
chain and actions taken​

Suppliers

UNGC
Principle 2

G4-LA11Percentage of employees receiving regularperformance reviews

Employee Programs

118

Number of grievances about human rights
impacts filed

This information is considered Business
Confidential.

UNGC
Principle 6
SDG 5, 8

G4-LA12

Employees by category for diversity indicators

Diversity and Inclusion
Employee Programs

76
118

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.

G4-LA14

Percentage of new suppliers screened using
labor practices criteria

Supplier

G4-HR12

Number and percentage of operations that havebeen assessed for human rights

216 | 3M 2018 Sustainability Report

168

UNGC
Principle 6
SDG 8, 10168

SDG 5, 8, 16#improvinglives | 217

About Report | GRI Index
GRI
Element
G4-LA15

G4-LA16

Description
Negative labor practices impacts in the supply
chain and actions taken​
Grievances about labor practices

Cross-Reference (Hyperlinks)
or Direct Answer

Page
(PDF)

Supplier

168

GRI
Connections
Disclosure to UN
Level
Initiatives*
SDG 8, 16

GRI
Element

This information is considered Business
Confidential.

PR Product Responsibility
GRI
Element

Description

Cross-Reference (Hyperlinks)
or Direct Answer

Page
(PDF)

G4-PR1

Percentage of product categories forwhich health and safety impacts areassessed/improved

Innovation Management
Product Safety, Quality, and Stewardship
Principle

188

G4-PR2

Non-compliance concerning health andsafety impacts of products

Corporate Code of Conduct
Innovation Management
Product Safety, Quality, and Stewardship
Principle

98
188

Corporate Code of Conduct
Innovation Management
Product Safety, Quality, and Stewardship
Principle
Advertising and Product Representation
Principle

98
188

G4-PR3

Organization's procedures for
product labeling

G4-PR4

Number of incidents for non-compliancewith labeling

Significant non-compliance with labeling would
be discussed in our Annual Report, 10-K.

G4-PR5Results of customer satisfaction surveys

This information is considered Business
Confidential.

G4-PR6

Sale of banned or disputed products​

Innovation Management
Product Safety, Quality, and Stewardship
Principle
Advertising and Product Representation
Principle

G4-PR7

Non-compliance concerning marketing
communications

Significant non-compliance concerning market
communications would be discussed in our
Annual Report, 10-K.

G4-PR8Substantiated complaints regarding
breaches of customer 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 our Annual
Report, 10-K.

G4-PR9Significant fines for non-compliance with
provision and use of product218 | 3M 2018 Sustainability Report

Significant fines for non-compliance with
provision and use of product would be
discussed in our Annual Report, 10-K.

SO Society
Description

Cross-Reference (Hyperlinks)
or Direct Answer

Page
(PDF)

GRI
Connections
Disclosure to UN
Level
Initiatives*

G4-SO1

Percentage of operations with local
community engagement, etc

Communities

64

UNGC
Principle 1

G4-SO2

Operations with significant impact on
local communities

Environmental Management
Raw Materials
Water
Climate and Energy
Suppliers
Human Rights

138
144
152
156
168
106

UNGC
Principle 1

G4-SO3

Percentage of operations assessed forrisks related to corruption

Corporate Code of Conduct
Be Honest

98

UNGC
Principle 10
SDG 16

G4-SO4

Communications and training ofanti-corruption policies

Corporate Code of Conduct
Be Honest

98

UNGC
Principle 10
SDG 16

G4-SO5

Confirmed incidents of corruption andactions taken

Corporate Code of Conduct

98

UNGC
Principle 10
SDG 16

G4-SO6

Value of political contributions bycountry and recipient​

Corporate GovernanceCorporate Code of Conduct
Lobbying and Political Activities Principle

86
98

UNGC
Principle 10
SDG 16

G4-SO7

Legal actions for anti-competitive behavior

Significant legal actions for anti-competitive
behavior, anti-trust and monopoly practices
would be discussed in our Annual Report, 10-K.

G4-SO8

Monetary value of significant fines

Environmental Management
Significant fines would be discussed in our
Annual Report, 10-K.

G4-SO9Percentage of new suppliers screened for
impacts on society

Suppliers

GRI
Connections
Disclosure to UN
Level
Initiatives*

SDG 12

SDG 16188

G4-SO10 Negative impacts on society in the
supply chain and actions taken

This information is considered Business
Confidential.

G4-SO11This information is considered Business
Confidential.

Grievances about impacts on society

SDG 16168

Disclosure Levels
Full

PartialNot Disclosed    *United Nations Global Compact Principles    *United Nations Sustainable Development Goals

SDG 16#improvinglives | 219

About Report | Assurance Statement

Assurance
Statement

INDEPENDENT ASSURANCE STATEMENT
Introduction and objectives of work
Bureau Veritas North America, Inc. (Bureau Veritas) was engaged by 3M Corporation (3M) to
conduct an independent assurance of its 2018 3M Sustainability Report (the Report). This
Assurance Statement applies to the related information included within the scope of work
described below. The intended users of the assurance statement are the stakeholders of 3M.
The overall aim of this process is to provide assurance to 3M’s stakeholders on the accuracy,
reliability and objectivity of the information included in the Report as described in the scope ofwork. The assurance process also evaluated 3M’s management of sustainability inaccordance with the principles of inclusivity, materiality and responsiveness.
The information that was assured and its presentation in the Report are the sole responsibilityof the management of 3M. Bureau Veritas was not involved in the drafting of the Report. Oursole responsibility was to provide independent assurance on its content.

Scope of work
3M requested Bureau Veritas to include in its independent assurance the following:

Data included in the Report for the calendar year 2017 reporting period as shown in
the attached Summary of Assured Information;

Appropriateness and robustness of underlying reporting systems and processes,
used to collect, analyze and review the data subject to the assurance process; and

Evaluation of the Report in accordance with the Assurance Standard AA1000AS(2008)1 Type 2 assurance.

Excluded from the scope of our work is any assurance of information relating to:Text or other written statements associated with the Report;

Activities outside the defined assurance period; andFinancial data and data reported that are not included in the Summary of Assured
Information.

Methodology
Bureau Veritas undertook the following activities during the assurance process:1. Interviews with relevant personnel of 3M (including managers and staff members at
the corporate and site level);
2. Review of internal and external documentary evidence produced by 3M;
3. Audit of performance data presented in the Report including a detailed review of asample of data;
4. Visits to manufacturing sites located in Cottage Grove, MN; Aberdeen, SD; andStafford Springs, CT;
5. Remote data reviews for manufacturing sites located in Gendorf, Germany; Tuas,
Singapore; and Sumaré, Brazil;
6. Visit to 3M headquarters office located in Maplewood, Minnesota; and1

220 | 3M 2018 Sustainability Report

Published by AccountAbility: The Institute of Social and Ethical Accountability#improvinglives | 221

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.

With corporate staff support, plants are developing project plans that have quantified
expected results to meet overall reduction goals with respect to waste and water. This
provides additional support to the planning for achieving goals.



Our findings

3M continued its commitment to considering sustainability in the development of new
products by conducting life cycle assessments to determine water consumption and GHG
emissions from new products compared to existing products used for the same purpose.

Control of emissions of high global warming potential compounds from manufacturing
processes is continuing to evolve to reduce process-related GHG emissions.

Community giving is aligned with core organizational values to improve lives with a focus
on education, community and the environment. 3M provides community support throughvarious engagements in the community. Corporately, the 3M Foundation provides funding
to charitable organizations. 3M also makes in-kind donations.

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 2017.

It is our opinion that 3M has established appropriate systems for the collection,
aggregation and analysis of quantitative data, including energy use, direct andindirect greenhouse gas (GHG) emissions, water consumption, waste quantities anddisposition, injury and illness rate, lost day rate, severity rate and number ofenvironmental violations.

A summary of data within the scope of assurance for 2017 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. In
2016, 3M commissioned a third party provider to update their materiality assessment and hassince been using that assessment to identify and engage stakeholders. Some of the
stakeholder groups that 3M has identified to include in their sustainability processes include
3M employees, customers, non-governmental organizations, investors and the public.

Statement of independence, impartiality and competence
Bureau Veritas is an independent professional services company that specializes in Quality,
Health, Safety, Social and Environmental management with over 180 years history inproviding independent assurance services, and an annual 2017 revenue of 4.69 Billion Euros.
No member of the assurance team has a business relationship with 3M, its Directors orManagers beyond that of verification and assurance of sustainability data and reporting. We
have conducted this verification independently and we believe there to have been no conflictof interest. Bureau Veritas has implemented a Code of Ethics across the business tomaintain high ethical standards among staff in their day-to-day business activities.
The assurance team has extensive experience in conducting assurance over environmental,social, ethical and health and safety information, systems and processes, has over 20 years
combined experience in this field and an excellent understanding of Bureau Veritas standard
methodology for the Assurance of Sustainability Reports.

Attestation:

Materiality
3M updated their materiality assessment in 2016. The Chief Technology Officer serves aleadership role for the company's Science, Technology and Sustainability (STS) committee,
which consists of a small group of key 3M leadership that continues to consider the materialityof sustainability issues. Background information on the STS can be found in the 3M proxystatement:
http://s2.q4cdn.com/974527301/files/doc_financials/2017/Annual/2018_3M_Company_Proxy.
pdf
Responsiveness3M receives questions regarding sustainability from customers, investors, non-governmentalorganizations and others through various channels. The company has guidance forresponding to customer inquiries on sustainability issues and uses this guidance forresponding to other groups as well. Responses to surveys are coordinated by the corporate
sustainability group. Each business group also has sustainability leads who assist withresponding to stakeholders.

John A. Rohde Lead Verifier

Candice Derks, Technical Reviewer

Senior Project Manager

Technical Director

Sustainability and Climate Change Services

Climate Change Services

Bureau Veritas North America, Inc.
Denver, Colorado
April 30, 2018

Key Observations for 2017Data systems at 3M allow for consolidation and review of environmental, safety, andenergy data at the corporate level for reporting.



Plants in water stressed areas have developed water plans and 3M is working to continue
to improve the plans through standardization and working with regional groups.

222 | 3M 2018 Sustainability Report#improvinglives | 223

Summary of Assured Information
Reporting Year 2017
3M Company

f Assured Information
rting Year 2017
M Company

Waste Energy
MetricsMetrics
Demographic Metrics

Units Units

UnitsValue Value

Value

Metrics
Demographic
AirEnergy
Emissions
Waste
Metrics
Metrics Metrics

Summary of Assured Information
Reporting Year 2017
3M Company

Summary of Assured Information
Reporting Year 2017
3M
Company
Summary
Summary
Summary
Summary
ofofAssured
Assured
ofofAssured
AssuredInformation
Information
Information
Information
Reporting
Reporting
Reporting
ReportingYear
YearYear
2017
Year
2017
2017
2017
3M
3MCompany
3M
Company
3MCompany
Company
Units Units
Units
Units

Value Value
Value
Value

Air Emissions
Waste
Metrics
MetricsMetrics
EnergyUnits

Units UnitsValue

Value Value

Metrics
AirEnergy
Emissions
Metrics

Units
Units

Value
Value

Total Global Full‐time Equivalent% of Total
Total Global Full‐time Equivalent% of Total
Total Energy
Use(Absolute)(Direct)
MMBTUs29,600,000
Zero Landfill
91,500Total Energy Use (Absolute)
MMBTUsSites
Total Number 28% 29,600,000
Absolute
Scope
1 Emissions
MetricTonsTotal
CO2eNumber
3,960,000
28%
91,500Zero
Landfill(Headcount)
Manufacturing(Headcount)
Manufacturing
Sites
Demographic
Demographic
Demographic
Demographic
Metrics
Metrics
Metrics
Metrics
Units
UnitsUnits
Units
Value
ValueValue
Value
Waste
Waste
Waste
Metrics
Waste
Metrics
Metrics
Metrics
Units
UnitsUnits
Units
Value
Value
Value
Value

% of Total
Absolute Zero
ScopeLandfill
1
Emissions
CO2eTotal Energy(Absolute)(Direct)
MMBTUs
Total
Energy (Direct)
Use (Absolute) Metric Tons
MMBTUsSites 3,960,00028% 29,600,000
Absolute
ScopeUse
1 Emissions
MetricTons CO2e
Manufacturing
EnergyEnergyEnergyMetrics
EnergyMetrics
Metrics
Metrics
Units
UnitsUnits
Units
Value
ValueValue
Value
Air
AirEmissions
Emissions
AirAirEmissions
Emissions
Metrics
Metrics
Metrics
Metrics
Units
UnitsUnits
Units
Value
ValueValue
Value

00

Waste
Disposed:
Landfill,
Treatment
andat Year‐End
TotalDisposed:
Employees
at%Year‐End
Total
Total
GlobalTotal
GlobalTotal
GlobalFull‐time
Full‐time
GlobalFull‐time
Full‐time
Equivalent
Equivalent
Equivalent
Equivalent
%
%
of
of
Total
Total Total Number%ofofTotal
Total
Total
GlobalEmployees
Absolute
Waste
Scope
2GlobalLocation‐based
Landfill,Emissions
Treatment
andMetricTons
159,000
Total
EnergyUse(Absolute)MWh8,670,000
92,400
Total
Number
Total
Number
28%
Total
Total
NumberNumber
28% 28%91,500Zero
Landfill
91,50091,500
ZeroLandfill
Zero
Landfill
Landfill
91,500Total (Absolute)
Energy Use (Absolute)MWhTotal Number
8,670,000
MetricTons
MetricCO2eTons 28%
1,880,000
159,000
92,400Zero
Incineration(Headcount)(Headcount)(Headcount)(Headcount)(Headcount)
Manufacturing
Manufacturing
Sites
Manufacturing
Sites
Manufacturing
SitesSites(Headcount)(Indirect)Incineration(Absolute)

Absolute Waste
Scope Disposed:
2 Location‐based
Landfill,Emissions
Treatment andMetricTons
Metric
CO2e
Tons
Total
EnergyUse(Absolute)
MMBTUs
Total
Total
EnergyEnergyUse(Absolute)(Absolute)
Use(Absolute)
MMBTUsMMBTUs
Total
EnergyUse
Total
EnergyUse (Absolute)MMBTUs
MWh(Indirect)
Incineration(Absolute)

Absolute
ScopeUse
2 Location‐based
Emissions MWh
1,880,000
159,000
Total
Energy(Absolute)
8,670,000
29,600,000
Absolute
29,600,000
29,600,000
Absolute
Absolute
ScopeScope
Emissions
1 1Emissions
Emissions(Direct)(Direct)(Direct) Metric
MetricMetricMetricTonsCO2e
Tons
CO2e
Tons
CO2e
CO2e
3,960,000
3,960,000
3,960,0001,880,000
29,600,000
Absolute
Scope
1 1Scope
Emissions(Direct)
Tons
3,960,000
8,670,000
MetricTons CO2e(Indirect)

00

Total
Total
GlobalGlobalEmployees
Employees
Year‐Endat at
Year‐End
Waste
Disposed:
Treatment
and
Waste
Waste
Disposed:
Disposed:
Landfill,
Landfill,
Treatment
Treatment
andandEmissions
Total
GlobalTotal
Employees
GlobalEmployees
atatIncineration
Year‐EndYear‐End Metric Tons
Waste
Disposed:
Landfill,
Treatment
andAbsolute
Scope
2NumberMarket‐based
Waste
by
DisposalType,45,100
Total
Fuel
Total
OilLandfill,#1,#2, #6
Part‐Time
Employees
MMBTUs
Total
Number 159,000
1,130,000
2,330
TotalNumber
Total
NumberNumber
MetricTons
159,000
Tons
159,000
MetricMetric
Tons
Total
Total
Number
MetricTons
159,000
92,40092,40092,40092,400Total
FuelTotal
Oil#1,
Number#2, #6Part‐Time Employees
MMBTUsTotal Number
1,130,000
Waste
by
DisposalType, Incineration
MetricCO2e
Tons
1,650,000
45,1002,330Incineration(Headcount)(Headcount)
Incineration(Absolute)
Incineration(Absolute)(Absolute)(Headcount)(Headcount)
Incineration(Absolute)(Indirect)

Absolute Scope 2 Market‐based Emissions
Waste
by
Disposal
Type,
Incineration
MetricTons
Metric
CO2e
Tons
Total
Total
EnergyEnergyUse(Absolute)(Absolute)
Use(Absolute)
MWh
MWh
Total
Energy
Use
MWh
Total
EnergyUse(Absolute)
MWh
Total
Fuel
Oil
#1, #2,#6
MMBTUs(Indirect)

Absolute
Absolute
Scope
2 Location‐based
2Fuel
Location‐based
Absolute
ScopeScope
Location‐based
EmissionsAbsolute
Scope
2 2Absolute
Location‐based
Scope
2Emissions
Market‐based
Emissions
1,650,000
45,100Total
Oil #1,#2, Emissions#6Emissions
MMBTUs1,130,000
MetricMetric
Tons
Tons
CO2e
CO2e
1,880,000
1,880,0001,650,000
8,670,000
8,670,000
MetricTonsCO2eCO2e1,880,000
8,670,000
MetricTons
1,880,000
8,670,000
1,130,000
MetricTons CO2e(Indirect)(Indirect)(Indirect)(Indirect)(Indirect)00

Absolute
Scope
1Numberand Scope2 Market‐
Waste
byDisposalType,
Landfilled
MetricTons
114,000
Total
Jet
Total
Fuel
Full‐Time
Employees
MMBTUs
Total
Number 45,100
138,000
90,000
Total
Number
Part‐Time
Employees
Total
Number
Waste
byby
Disposal
Type,
Incineration
MetricTons
45,100
Total
Number
Part‐Time
Employees
Total
Number
Total
Number
Total
Number
Part‐Time
Part‐Time
Employees
Employees
Total
Number
Total
Number
Waste
byby
Waste
Disposal
Disposal
Disposal
Type,
Type,by
Incineration
Incineration
Type,
Incineration
MetricMetricTons
MetricTons
Tons
45,10045,100
2,330
2,330
2,330
Jet
Total
Fuel
NumberFull‐Time
Employees
MMBTUsTotal Number2,330
138,000
Waste
DisposalType, Landfilled
MetricCO2e
Tons
5,610,000
114,000
90,000Waste
based Emissions (Indirect)

Absolute Scope 1 and Scope 2 Market‐
Waste
by
Disposal
MetricTons
Metric
CO2e
Tons
Total
Total
Fuel
Total
Fuel
Total
Oil
Oil
Fuel
#1,
Fuel
#1,
Oil
#2,
#2,
Oil
#1,
#6#1,
#6
#2,#2,#6Type,#6 LandfilledMMBTUs
MMBTUsMMBTUsMMBTUs
Total
Jet
Fuel
MMBTUsbased
Emissions(Indirect)

Absolute
Absolute
Scope
2 Market‐based
2Jet
Market‐based
EmissionsAbsolute
Absolute
Scope
ScopeScope
2 2AbsoluteMarket‐based
Market‐based
Scope
1EmissionsandEmissions
Scope
2 Market‐
5,610,000
114,000138,000
Total
FuelEmissions
MMBTUs138,000
MetricMetric
Tons
Tons
CO2e
CO2e
1,650,000
1,650,0005,610,000
1,130,000
1,130,000
1,130,000
1,130,000
MetricMetricTons
TonsCO2eCO2e1,650,000
1,650,000
MetricTons CO2e(Indirect)(Indirect)based Emissions (Indirect)(Indirect)(Indirect)

00

Percentage
of Female Employees
to Tons
Total
Hazardous
Waste(Absolute)
MetricTotal
NumberFull‐Time
Employees
Total
NumberTotalNumber
NumberFull‐Time
Employees
Total
Number
Total
Total
NumberFull‐Time
Full‐Time
Employees
Employees Total
Number
Total
Number
PropaneMMBTUs%Employees

Percentage of Female Employees to Total
43,800Total
PropaneMMBTUs
%CO2e
Waste
by
DisposalType,
Landfilled
Metric
Tons
Waste
byby
Waste
Disposal
Disposal
byDisposal
Type,
Type,
Landfilled
Landfilled
Type,
Landfilled
MetricMetricTons
MetricTons
Tons
90,00090,00090,00090,000177,000
Total
Scope
Total
3 GHG
Hazardous
Emissions
Waste(Upstream)(Absolute)
MetricTons
34.7 Waste
Employees

177,000
34.7
114,000
114,000
114,000
114,000
9,340,000
43,800

Scope
Total
GHG
Hazardous
Emissions
Waste(Upstream)(Absolute) MMBTUs
MetricTons
Metric
CO2e
Tons
Total
TotalJet
Total
Jet
Total
Fuel
Fuel
Jet3JetFuelFuelMMBTUsMMBTUsMMBTUs
Total
PropaneMMBTUsAbsolute
Absolute
Scope
1Scopeand
1Propane
and
Scope
Scope
2 Market‐
2 Market‐Absolute
Absolute
Scope
ScopeScope
1 1andandScope
2 2Market‐
Market‐9,340,000
43,800177,000
Total
MMBTUs177,000
MetricMetric
Tons
Tons
CO2e
CO2e
5,610,000
5,610,0009,340,000
138,000
138,000
138,000
138,000
MetricMetricTons
TonsCO2eCO2e5,610,000
5,610,000
Total
Scope
3 GHG Emissions(Upstream)
MetricTons CO2e
based
Emissions
Emissions(Indirect)(Indirect)
based
basedbased
Emissions
Emissions(Indirect)(Indirect)

00

of of
FemaleEmployees
toto
Total
Percentage
FemaleEmployees
Total
Percentage
Percentage
ofofFemale
Employees
FemaletotoTotal
Total
Percentage
ofEmployees
FemaleEmployees
in Tons
TotalPercentage
Nonhazardous(Absolute)
Metric%%%%Total GasolineWaste
and Diesel
MMBTUs%Employees
Employees
Employees
Employees
Management Positions

Percentage of Female Employees in
187,000
Total
Gasolineand Diesel
MMBTUs%CO2e
Total
Hazardous
Waste(Absolute)
MetricTons
Total
Hazardous
Waste(Absolute)
MetricTons
TotalHazardous
Hazardous
Waste(Absolute)(Absolute)
MetricMetric
Tons
Tons
34.7
34.7
34.7
34.7
155,000
Category
Total
1Waste‐ Purchased
Nonhazardous
Goods
Waste
and Services(Absolute)
MetricTons
29.1 Total
Management
Positions

155,000
29.1
43,80043,80043,80043,800187,000
6,570,000

Category
Total
1Propane‐ Purchased
Nonhazardous
GoodsWaste
and(Absolute)
MetricTons
Metric
CO2e
Tons
Total
Total
PropaneMMBTUs
Total
Total
PropanePropaneMMBTUsMMBTUsMMBTUsTotal Gasoline
and Services
DieselMMBTUs187,000155,000
Total
Gasoline
andDieselMMBTUs155,000
6,570,000
177,000
Total
177,000
177,000
177,000
Total
TotalScope
Total
Scope
Scope
3 3GHG
Scope
GHG
3Emissions
GHG
Emissions
3 GHG
Emissions(Upstream)(Upstream)(Upstream)
MetricMetricTons
MetricTonsCO2e
Tons
CO2e
Tons
CO2e
CO2e
9,340,000
9,340,000
9,340,000
9,340,000
Category
1Emissions‐(Upstream)
Purchased
Goods
andMetric
Services
MetricTons CO2e6,570,000

00

Percentage
Femaleof ofFemaleEmployees
Employees
Percentage
Percentage
ofofFemale
Employees
FemaleEmployees
inin in in Metric Tons
TotalPercentage
Waste(Absolute)%%%%SystemManagement
Total Diverted
CoalEnvironmental
MMBTUsManagement
Management
Positions
PositionsManagement
Management
Positions
Positions
Metrics

Category
Total
2Gasoline‐ Capital
Waste
Goods
Diverted(Absolute)
Total
Total
Gasoline
andDieselTotal
Total
Gasoline
Gasoline
andandDieselDieselandDieselTotal
Coal

MetricTons
MetricCO2eTons
MMBTUsMMBTUsMMBTUsMMBTUsMMBTUs306,000 Category
Total
Coal
MMBTUs436,000
155,000
Category
155,000
155,000
155,000
Category
1 1‐ Purchased‐ Purchased
1 Category‐1Purchased‐ Purchased
Goods
Goods
and
and
Goods
Services
ServicesandandServices
Services
MetricMetricMetricTons
MetricTonsCO2e
Tons
CO2e
Tons
CO2e
CO2e
6,570,000
6,570,000
6,570,000
6,570,000 436,000 0
0 Category
2 ‐ Goods
CapitalGoods
MetricTons CO2e00

Numberof Significant
TotalManagement
Numberof Significant
Category
3 Total‐ FuelGasand Energy
Related Spills MMBTUsTotal Number
Waste‐to‐Energy
Metric MMBTUs
Tons
71,800
Total
Natural15,700,000
0Environmental
Environmental
Management
SystemSystemEnvironmental
Environmental
Management
Management
SystemSystemSpills
Total
Waste
Diverted(Absolute)
Metric306,000
TotalWaste
Waste
Diverted
Diverted(Absolute)(Absolute)
MetricMetricTons
Tons Tons
306,000
306,000
Total
Waste
Diverted(Absolute)
MetricTons
306,000 71,800
Total Natural
Gas
Total Number
15,700,000 0 Total
Waste‐to‐Energy
MetricCO2e
Tons
631,000(Spills
reportedin 10K reporting)(Spills
reportedin
10K
reporting)
Activities
Metrics
Metrics
UnitsUnits
ValueValue
Metrics
Metrics
Units
Units
Value
Value

Category 3 ‐ Fuel and Energy Related
Waste‐to‐Energy
Total
Total
Total
Coal
Coal
Coal
Total
CoalTotal Natural Gas
Activities

MetricTons
MetricCO2eTons
MMBTUsMMBTUsMMBTUsMMBTUsMMBTUsCategory
3 ‐ FuelGasand Energy Related
Total
NaturalMMBTUs631,000
0 0 71,800
0 15,700,000
Category
Category
2 2‐ Capital‐ Capital
2 ‐2Capital‐GoodsCapital
Goods
Goods
Goods
MetricMetricMetricTons
MetricTonsCO2e
Tons
CO2e
Tons
CO2e
CO2e
0 Category
Category
436,000
436,000
436,000
436,000 15,700,000
MetricTons CO2e
631,000
Activities

00of Significant
Finesand(Fine or penalty
Total
Total
NumberNumberSignificant
of of
Significant
SpillsSpills
Total
Number
Total
Numberofof
Significant
Significant
SpillsNumber
ofSpills
Significant
Fines (Fineor Tons
penaltyCategory
4 Number‐ Upstream
Transportation
OnsiteRecycle&Reuse
MetricTotal Electricity
Consumption
MMBTUs
Total
Number 71,800
11,100,000
2
Total
Total
NumberNumber0
Waste‐to‐Energy
Waste‐to‐Energy
MetricTons
71,800
Total
Total
Number0
Waste‐to‐Energy
MetricTons
71,800 60,300
Number
MetricMetric
Tons
Tons
71,800Total
Electricity
Consumption
MMBTUsTotal Number 0 0 60,300
11,100,000
2 Waste‐to‐Energy
Onsite Recycle& ReuseMetricCO2e
Tons
1,050,000(Spills(Spills
reportedreported
10K
inreporting)
10K
reporting)(Spills
reported(Spills
reported
inin
10K
reporting)in
10K
reporting)>$10,000)
Distribution>$10,000)

Category 4 ‐ Upstream Transportation andOnsiteRecycle& ReuseConsumption
MetricTons
Metric
CO2e
Tons
Total
Total
NaturalGas
MMBTUs
Total
Total
NaturalNaturalNaturalGas
GasTotalGas
MMBTUsMMBTUsMMBTUsElectricity
MMBTUsDistribution

Category
Category
3 and
‐3and
Fuel
‐ FuelandandEnergyRelatedRelatedCategory
Category
3 3‐ Fuel‐ FuelEnergyEnergyRelatedCategory
4Energy‐Related
UpstreamTransportation and60,300Total
Electricity
Consumption
MMBTUs
11,100,000
1,050,000
MetricMetric
Tons
Tons
CO2e
CO2e
15,700,000
15,700,000
15,700,000
15,700,000
MetricMetricTons
TonsCO2eCO2e631,000
631,000
631,000
631,000
11,100,000
MetricTons CO2e
1,050,000
Activities
ActivitiesDistribution
Activities
Activities

00

Numberof of
Significant
Fines
(Fine
oror
penalty
NumberSignificant
Fines(Fine(Fineorpenalty
penalty
NumberNumberofofSignificant
Significant
Fines
Fines
or
(Fine
penalty
OffsiteReuse
MetricTons
Total
Number
Total
NumberNumber
Total
Total
Number
Total
Steam
Total
Consumption
Monetary Value of Significant
Fines
MMBTUsMillion $USD>$10,000)>$10,000)>$10,000)>$10,000)

1,220,000
60,30060,30060,3000.090
60,30031,600279,000

Category
Offsite5Electricity‐ WasteReuse
Generated
in OperationsMMBTUs
MetricTons
Metric
CO2e
Tons
Total
Total
Electricity
Consumption
Total
Electricity
Consumption
MMBTUs
Total
Electricity
Consumption
Consumption
MMBTUsMMBTUsTotal
Steam
Consumption
MMBTUsCategory
4 4‐ Upstream
Transportation
andCategory
Category
4 ‐4Upstream‐ Upstream
Transportation
Transportation
andCategory‐ Upstream
Transportation
and and31,600Total
Steam
Consumption
MMBTUs1,220,000
279,000
11,100,000
MetricTons
11,100,000
MetricMetric
Tons
Tons
CO2e
CO2e
11,100,000
11,100,000
MetricTonsCO2eCO2e1,050,000
1,050,000
1,050,000 279,000
1,050,000
1,220,000
Category
5 ‐ Waste
Generated
in Operations
MetricTons CO2e
Distribution
Distribution
Distribution
Distribution

00

OffsiteRecycleMetricTons
142,000
Total
Monetary
Value
of of
Significant
Fines
$USD
Total
Monetary
Value
ofValueSignificant
Fines
Million$USD
Total
Monetary
Total
Monetary
Value
ofSignificant
Significant
Fines
Fines
Million$USD
Million
$USD
0.090
0.090
0.090
Environmental
Liability
AccruedatMillion
Year
End
Million $USD 0.090

031,60031,60031,60031,600 142,000
40,900Category
Offsite6Steam‐ Consumption
Business
RecycleTravel
Total
Total
Total
Steam
Steam
Total
Consumption
Steam
Consumption
Consumption

MetricTons
MetricCO2eTons
MMBTUsMMBTUsMMBTUsMMBTUs142,000 Category
40,9001,220,000
1,220,000
1,220,000
1,220,000
Category
Category
Category
5 5‐ Waste‐ Waste5 Category‐5WasteGenerated‐ Generated
Waste
Generated
ininOperations
Operations
in inOperations
Operations
MetricMetricMetricTons
MetricTonsCO2e
Tons
CO2e
Tons
CO2e
CO2e
279,000
279,000
279,000
279,000 40,900
6Generated‐ BusinessTravelMetricTons CO2e

Metric Tons CO2e

332,000
Category
6 Category‐6Business
MetricTons
CO2eCategory
Category
Category
6 6‐ Business‐ Business‐ BusinessTravelTravelTravelMetricMetricTons
MetricTonsCO2e
CO2e
Tons
CO2e
40,90040,90040,900 332,000
7Travel‐ Employee
Commuting
MetricTons CO2e40,900
Value Value
Units
Value
Other Metrics

306,000
29.1
29.1
29.1
29.1
Units

Management
SystemTotal
Coal
MMBTUsTotal
Nonhazardous
Waste(Absolute)
MetricTons
187,000
Total
Nonhazardous
Waste(Absolute)
MetricTons
187,000 0306,000
TotalNonhazardous
Nonhazardous
Waste(Absolute)(Absolute)
MetricMetric
Tons
Tons
187,000
187,000
0 TotalCategory
Total
2 Environmental‐WasteCapitalWaste
Goods
Diverted(Absolute)
MetricCO2e
Tons
436,000
Metrics
Units
Value
Value

Total
Steam
Total
Monetary
Valueof Significant
Fines
MMBTUsMillion$USD
21,220,000
OnsiteRecycle& Consumption
Reuse
MetricTons
Onsite2 2 31,600
Recycle&Recycle
MetricTons
2Onsite&
Reuse
MetricTons
Recycle&ReuseMetricTons
Category
Offsite
5Reuse‐ WasteReuse
Generated
in Operations
MetricCO2e
Tons
0.090Onsite
Liability AccruedatYearTons
End
Million$USD
OffsiteMetricOffsiteReuse
OffsiteReuseReuse
Reuse
MetricMetricTons
MetricTons
Tons
Category
Offsite6 Environmental‐ Business
RecycleTravelMetricCO2e
Tons
0 Offsite

00 0 0
UnitsValue Value

OffsiteRecycleMetric142,000
OffsiteOffsiteRecycleOffsiteRecycleRecycleMetricTons
MetricTons Tons
Tons CO2e
142,000
142,000
142,000
Category
7 ‐ Employee Commuting Metric
332,000
Healthand Safety Metrics
Units Units
Units
Value Value
Other Metrics
Value
Water
Metrics
Value

Category 7 ‐ Employee Commuting
Water Metrics
Other Metrics

Customer
GHG Avoidance through 3M Million
Million
Per 100
Tons
3M employees
Total Water
UseGlobal(Absolute)
CubicMetric
Meters46
Lost Time Incident Rate
Product
Use
CO2e(200,000
hours)
Healthand
SafetyMetrics
Healthand
Healthand
Metrics
SafetyMetrics
Units
Units workValue
HealthandSafety
SafetyMetrics
UnitsUnits
Value
Value
Value
Sites located in Water Stress/Scarce Areas;
Per
100
3M3M
employees
Per
3M
Per
employees
100
employees
Per100100
3M
employeesPer
100 3M employees
waterGlobal
sourcessignificantly
affectedby
25 0.344
Lost
Time
Incident
Rate
0.344
GlobalLost
GlobalTime
Lost
Incident
Time
Incident
Rate
Rate
0.344
GlobalLost
Time
Incident
Rate
0.344
GlobalRecordable
Incident
Rate Total Number(200,000
work
hours)(200,000(200,000work
work
hours)(200,000
workhours)
hours)(200,000
work hours)
withdrawal of water with water

Customer GHG Avoidance through 3M
Million Metric
Per 100
Tons
3M employees
GlobalLostUseTime
Incident
Rate Metric TonsMillion
13
0.344
13
0.344
Category
13‐ Downstream
Water(Absolute)
LeasedAssetsCO2e Cubic
ProductTotal
Use
CO2e (200,000
workMeters
hours) <100046
Water
Metrics
Water
Water
Metrics
Metrics
Water
Metrics
Units
UnitsUnits
Units
Value
ValueValue
Value
Sites located in Water Stress/Scarce Areas;
Per 100 3M employees
Total Volatile
Organic
CompoundEmissionsGlobalRecordable
Incident
Rate
1.16
Total
Water
Use
(Absolute)
Million
Cubic
Meters
Water
Use
Use
(Absolute)(Absolute)
MillionMillionCubic
CubicMeters
Meters
Total
Water
Use
(Absolute)
Million
Cubic
MetersTotalWater
4646 4,50025
46
461.16 Total
watersourcessignificantly
affectedby
MetricTons
Total
Number(200,000
work
hours)(Absolute)
withdrawal of water with water
Sites
locatedin in
Water
Stress/Scarce
Areas;
Sites
located
Water
Stress/Scarce
Areas;
Sites
SiteslocatedlocatedininWater
Water
Stress/ScarceStress/Scarce
Areas;
Areas;
Work
Related
Fatalities
3M Employees
Total Number25
0
watersourcessignificantly
affected
Total
Numberwater
sourcessignificantly
affected
Total
Numberwatersources
sourcessignificantly
significantly
affected
affected
byby by‐by
Total
TotalNumber
Number
25 2525
0 water
withdrawal
of of
water
with
water
withdrawal
water
with
water Metrics
withdrawal
withdrawal
ofofwater
water
with
with
water
water
Supplier
Responsibility
Units
Value

Customer
GHG
Avoidance
MillionCategory Total
13 ‐ Downstream
Water
Use (Absolute)
LeasedAssets through
Metric3M
TonsMillion
CO2e
CubicMetric
MetersTons <100046
Product Use
CO2e
Units
Units
Value
Value
UnitsUnits
ValueValue
Other
Metrics
Other
Metrics
OtherOther
Metrics
Metrics
Sites located in Water Stress/Scarce Areas;
TotalCustomer
Volatile
CompoundEmissionsCustomer
GHG
Avoidance
through
MillionMetricTons
Customer
GHGOrganic
GHG
Avoidance
Avoidance
throughthrough
3M
3M3M
MillionMillionMetricMetricTons Tons
Customer
GHG
Avoidance
through
3M
MillionMetricTons
watersourcessignificantly
affectedby
MetricTons
Total
Number
4,500131325 1313
(Absolute)
Product
Use of water with water CO2e
CO2e
Product
Product
Use
Use
CO2eCO2e
Product
Usewithdrawal

Environmental
Environmental
Liability
Liability
AccruedAccrued
Year
atEnd
Year
End
End
Million$USD$USD
Environmental
Environmental
Liability
AccruedLiability
AccruedatatYearatYear
MillionEndMillion$USD
Million$USD
Water Metrics
Units Units
Health and Safety Metrics
Other Metrics

Per100100
3M
employees
Per
100
3M3M
employees
Per
3M
Per
employees
100
employees
GlobalRecordable
Incident
Rate
1.16 1.16
GlobalRecordable
Incident
Rate
GlobalRecordable
GlobalRecordable
Incident
Incident
Rate
Rate ‐ 3M Employees
1.16
Work
Related
Fatalities
Total Number 1.16
(200,000
work
hours)(200,000
work
hours)(200,000(200,000
work
hours)
work
hours) Value
Supplier Responsibility Metrics
Units
TotalRelated
NumberofWorkSuppliers
Total
NumberWork
Related
Fatalities‐Employees
3M
Employees
Total
Number00
Work
Related
Fatalities‐ 3MEmployees
Total
NumberWork
Work
Fatalities
Related
Fatalities
‐ 3M
‐ 3M
Employees
Number
Total
Number00
Related
Fatalities‐ 3MTotal
Contractors
Total Number 85,100

1

Cumulative Number
TotalRelated
NumberofWorkSupplier
Reviews
Work
Related
Fatalities‐Contractors
3M
Contractors
Total
Number11
Work
Related
Fatalities‐ 3M
Contractors
Total
NumberWork
Work
Related
Fatalities
Fatalities
‐ 3M
‐ 3M
Contractors
Total
Total
NumberNumber11
Related
Fatalities‐ Total
NumberTotal Number 5,790
since
2008

Cumulative
NumberWork
RelatedTotal Number
Total
Number1
Total
Numberof ofSuppliers
Total
Number
Total
Number
Suppliers
Total
NumberTotalNumber
NumberofofSuppliers
Suppliers
Total
TotalNumber
Number
85,10085,100 5,790
85,10085,100
1 Total
Total
NumberofFatalities
Supplier ‐Reviews
since 2008

Work
Related
Fatalities‐Number
Total
Number
Total
NumberWork
Related
Fatalities‐ Total
Number
Total
NumberWork
WorkRelated
Related
Fatalities
Fatalities‐ Total‐ Total
Number
Total
TotalNumber
Number224 | 3M 2018 Sustainability Report

11

11

Work
Related
Total
Number
Total
NumberofFatalities
Suppliers‐ 3M Contractors
Total
Number
Supplier
Responsibility
Metrics
Supplier
Responsibility
Metrics
Units
Value
Supplier
Supplier
Responsibility
Responsibility
Metrics
Metrics
Units
UnitsUnits
Value
ValueValue

Total
Numberof ofSupplier
Reviews
Total
Number
Supplier
Reviews
Total
TotalNumber
NumberofofSupplierSupplier
Reviews
Reviews

1
85,100

Supplier Responsibility Metrics
Total Number of Suppliers

Total Number of Supplier Reviews

Units Units

Units

Value

Total Number

85,100

Cumulative Number
since 2008

5,790

29,600,000
3,960,000

Customer GHG Avoidance through 3M
Million Metric Tons
Category
7 Category‐7Employee‐ Employee
CommutingCommuting Leased
MetricMetric
Tons
Tons
CO2e
CO2e
Category
7 7‐ Employee
Commuting
MetricTons
Category‐ Employee
Commuting
MetricTonsCO2eCO2e332,000
332,000
332,000
332,000
13 Category
13‐ Downstream
AssetsMetricTons CO2e
ProductUse
CO2e<100013

Total Volatile Organic Compound Emissions
Category
Category‐ Downstream
LeasedAssetsMetricTonsCO2eCO2eCategory1313‐ Downstream‐ Downstream
LeasedLeasedAssetsAssetsMetricMetric
Tons
Tons
CO2e
CO2e
Category1313‐ Downstream
LeasedAssetsMetricTons
MetricTons(Absolute)<1000<1000
<1000
<1000

4,500

Total
Volatile
Organic
CompoundEmissions
Total
Organic
CompoundEmissions
TotalVolatile
Volatile
Total
Volatile
Organic
Organic
CompoundCompoundEmissions
Emissions
MetricMetricTons
MetricMetricTons Tons
Tons(Absolute)(Absolute)(Absolute)(Absolute)

4,500
4,5004,500
4,500

Cumulative
NumberCumulative
NumberCumulative
Cumulative
NumberNumber
5,790
5,790
5,7905,790
since
2008
since
2008
since
since2008
2008#improvinglives | 225

About Report | Metric Tables

3M Historical Metrics
MetricMetric Units

RY-2002

RY-2005

RY-2010

RY-2015

RY-2017

Historical
Reporting
Change%Net Sales

Million $USD

16,30026,70029,60030,30031,700

94.5

Environmental Footprint

Metric Tables

Absolute Scope 1 Emissions(Direct)

Metric Tons CO2e

16,800,000

10,100,000

4,280,000

3,770,000

3,960,000-76.4

Absolute Scope 2 Location-based
Emissions (Indirect)

Metric Tons CO2e

1,540,000

1,700,000

1,940,000

1,860,000

1,880,000

22.1

Total GHG Emissions (Indexed to
Net Sales, Location-based)

Metric Tons per Net
Sales (MM $USD)

1,120

559

233

186

184

-83.6

2012-2016 U.S. 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 U.S. EPA GHG-MRR/IPCC AR5 methodology (2.7% increase in absolute emissions overoriginal reported value).
Total Volatile Organic Compound
Emissions (Absolute)

Metric Tons

6,800

6,070

4,800

4,500

-33.8

Total Volatile Organic Compounds
Emissions (Indexed to Net Sales)

Metric Tons per Net
Sales (MM $USD)

0.321

0.228

0.158

0.142

-55.8

Total Energy Use (Absolute)

MMBTUs27,900,000

26,800,000

28,400,000

29,600,000

6.09

Total Energy Use (Absolute)MWh8,170,000

7,860,000

8,320,000

8,670,000

6.12

Total Energy (Indexed to Net
Sales)MMBTUs per Net
Sales(MM $USD)

1,320

1,010

937

935

-29.2

Waste Disposed: Landfill,
Treatment and Incineration(Absolute)

Metric Tons

145,000

136,000

158,000

159,000

9.66

Waste Disposed: Landfill,
Treatment and Incineration(Indexed to Net Sales)

Metric Tons per Net
Sales (MM $USD)

6.83

5.09

5.21

5.03

-26.4

Starting in 2016, waste disposed and waste by disposal type does not include waste-to-energy. Total hazardous and total nonhazardous waste
below includes waste-to-energy.
Total Hazardous Waste (Absolute)

Metric Tons

47,70042,30045,40043,800-8.18

Total Nonhazardous Waste(Absolute)

Metric Tons

132,000

134,000

172,000

187,000

41.7

Total Water Use (Absolute)

Million Cubic Meters

49.0

43.0

42.2

46.0

-6.12

Total Water Use (Indexed to Net
Sales)

Million Cubic Meters
per Net Sales (MM$USD)

0.002310.001610.001390.00145-37.2

Global Lost Time Incident Rate

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

0.594

0.364

0.321

0.344

-42.1

Global Recordable Incident Rate

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

1.85

1.56

1.22

1.16

-37.1

Health and Safety

226 | 3M 2018 Sustainability Report#improvinglives | 227

About Report | Metric Tables

Social Performance, Employees

Financial Performance

MetricMetric Units

RY-2013

RY-2014

RY-2015

RY-2016

RY-2017

Global Full-time
Equivalent Employees

Total Number

88,70089,80089,40091,60091,500Global Employee(Headcount)

Total Number

Total Number
Part-Time Employees

Total Number

Total Number
Full-Time Employees

Total Number

Percentage ofFemale Employees toTotal Employees%

Percentage ofFemale Employees
in Management
Positions%89,6002,580

87,00033.7

25.3

90,7002,560

88,20033.9

26.1

90,4002,520

87,90033.9

26.9

92,5002,390

90,10034.8

27.8

92,4002,330

90,00034.7

29.1

2016-2017 2013-2017
AnnualFive Year
ChangeChange%%-0.109-0.108-2.51-0.111-0.287

4.68

3.16

3.13

-9.69

3.45

2016-2017 2013-2017
AnnualFive Year
ChangeChange%%MetricMetric Units

RY-2013

RY-2014

RY-2015

RY-2016

RY-2017

Net Sales

Million $USD

30,90031,80030,30030,10031,7005.32

Operating Income1

Million $USD

6,980

7,030

7,690

9.39

Research,
Development andRelated Expenses1

Million $USD

1,760

1,760

1,870

6.25

Total Operating
Expenses1

Million $USD

23,30023,10024,0003.90

Net Income
Attributable to 3M

Million $USD

4,660

4,960

4,830

5,050

4,860

-3.76

4.29

Per Share-Basic

Actual $USD

6.83

7.63

7.72

8.35

8.13

-2.63

19.0

Per Share-Diluted

Actual $USD

6.72

7.49

7.58

8.16

7.93

-2.82

18.0

Capital Expenditures

Million $USD

1,670

1,490

1,460

1,420

1,370

-3.52

-18.0

Dividends Paid
to Shareholders
and Cash Interest
Payments

Million $USD

1,900

2,390

2,700

2,870

3,020

5.23

58.9

Provision for Income
Taxes

Million $USD

1,840

2,030

1,980

2,000

2,680

34.0

45.7

2.59

2.97

15.0

1. Amounts for Operating Income; Research, Development, and Related Expenses; and Total Operating Expenses were reclassified back to 2015 to reflect the adoption of an accounting standard(ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost) effective January 1, 2018 on a retrospective basis. Amounts prior to2015 have not been reclassified.

Community Engagement

228 | 3M 2018 Sustainability Report

2016-2017 2013-2017
AnnualFive Year
ChangeChange%%MetricMetric Units

RY-2013

RY-2014

RY-2015

RY-2016

RY-2017

Total Global Giving

Million $USD

61.6

81.3

72.8

67.3

73.5

9.21

19.3

Total Cash Donations

Million $USD

30.3

30.3

34.1

34.8

35.9

3.16

18.5

Total In-Kind
Donations

Million $USD

31.3

51.0

38.4

32.5

37.6

15.7

20.1

#improvinglives | 229

About Report | Metric Tables

Environmental Performance
Environmental
Management
System — Metric

Metric Units

Total Number ofSignificant Spills

Total Number

Number of
Significant Fines

Total Number

Total Monetary Valueof Significant Fines

Million $USD

Environmental
Liability Accrued atYear End

Million $USD

Greenhouse Gas— Metric

RY-2013

RY-2014

RY-2015

RY-2016

RY-2017

0

0

0

0

0

Scope 3, Category
4 (Upstream
Transportation andDistribution)

Significant spill: spills included in the organization's financial statement.
2

1

0

0

2

0

0.09000.0630

0

0.113

0

0

0

0

0

2016-2017 2013-2017
AnnualFive Year
ChangeChange%%Metric Units

Absolute Scope 1
Emissions (Direct)

Metric Tons CO₂e5,590,000

4,390,000

3,770,000

4,140,000

3,960,000

-4.35

-29.2

Absolute Scope
2 Location-based
Emissions (Indirect)

Metric Tons CO2e2,360,000

2,240,000

1,860,000

1,840,000

1,880,000

2.17

-20.3

Absolute Scope
2 Market-based
Emissions (Indirect)

Metric Tons CO2e

1,780,000

1,650,000-7.30

Total Scope 1 and
2 GHG Emissions:Market-based
Accounting

Metric Tons CO2e5,920,000

5,610,000-5.24

Total GHG Emissions(Indexed to Net
Sales, Locationbased)

Metric Tons per Net
Sales (MM $USD)

Customer GHG
Reduction ThroughUse of Various 3M
Product Platforms

Million Metric Tons
CO₂e

RY-2013258

RY-2014208

RY-2015

186

14

RY-2016

199

13

RY-2017

184

-7.54

-28.7

13

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. Baseline reporting year has not been established for our Scope 3 emissions.
Metric Tons CO₂e

Total Scope
3 Emissions(Downstream)

Metric Tons CO₂e8,760,000

Metric Tons CO₂e

Scope 3, Category 2(Capital Goods)

Metric Tons CO₂e424,000

Metric Tons CO₂e

Partially
includedin Scope 1
and Scope2 emissions
reporting.

230 | 3M 2018 Sustainability Report

9,260,000

8,690,000

9,490,000

9,340,000

All downstream categories either do not apply or are de minimis.

Scope 3, Category 1(Purchased Goods
and Services)

Scope 3, Category
3 (Fuel and Energy
Related Activities;
Not Including
Scope 1 or Scope 2
Emissions)

Metric Tons CO₂e

RY-20131,230,000

RY-2014995,000

RY-2015780,000

RY-2016

699,000

RY-20172016-2017 2013-2017
AnnualFive Year
ChangeChange%%1,050,000

Emissions disclosed
in previous years(2013-2014) were
miscategorized as
Category 9; data
does not include
emissions fromtransportation of
raw materials fromsuppliers.

Significant fine: fine or penalty over $10,000.

Greenhouse Gas— Metric

Total Scope 3
Emissions (Upstream)

Metric Units

6,730,000

6,830,000

499,000

6,200,000

452,000

7,120,000

423,000

6,570,000

436,000

Methodology
updated to calculate
values based on 3M
spend using U.S.
EPA EEIO factors.
All historical values
recalculated.

Scope 3, Category 5(Waste Generated in
Operations)

Metric Tons CO₂e

Scope 3, Category 6(Business Travel)

Metric Tons CO₂e

Scope 3, Category
7 (Employee
Commuting)

Metric Tons CO₂e

Scope 3, Category
8 (Upstream, Leased
Assets)Metric Tons CO₂e

Scope 3, Category
9 (Downstream
Transportation andDistribution)

Metric Tons CO₂e

Scope 3, Category
10 (Processing of
Sold Products)

Metric Tons CO₂e

Scope 3, Category
11 (Use of Sold
Products)

Metric Tons CO₂e

Scope 3, Category
12 (End of Life
Treatment of Sold
Products)

Metric Tons CO₂e

Insufficient data

56,900322,000

61,100326,000

254,000

248,000

279,000

Calculated from
3M primary dataon waste by facility
size or number of
employees.

55,80061,80040,900Calculated from
3M primary data on
business travel.

332,000

Methodology
updated to calculate
values based on 3M
employee headcountwith U.S. EPA GHG
Emission Factors. All
historical values
recalculated.

325,000

332,000

These emissions areincluded in Scope 1
and 2, because they
are all under 3M
operational control.

Included in Scope 1 and Scope 2 emissions reporting.

Not evaluated; most of 3M's products are intermediates with many potential end uses. According
to the GHG Protocol Scope 3 Calculation and Guidance, a company that produces intermediate
products with many potential downstream applications, each with a potentially different GHG
emission profile, cannot reasonably estimate the downstream emissions associated with thevarious end uses of the intermediate products.

Scope 3, Category 13(Downstream Leased
Assets)Included in Scope 1
or Scope 2 emissions
reporting.

Metric Tons CO₂e

Scope 3, Category 14(Franchises)

Metric Tons CO₂e00

Scope 3, Category 15(Investments)

Metric Tons CO₂e00<1,000<1,000Prior to 2015, 3M
reported facilities
leased to third parties
under Scope 1 and 2.

0

0

0

No franchises under
3M financial control.

0

0

0

No investments under
3M financial control.

<1,000The data reported is in accordance to the World Resources Institute (WRI)/World Business Council for Sustainable Development (WBCSD)
Corporate Value Chain (Scope 3) Accounting and Reporting Standard.

551,000

621,000

607,000

631,000

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

#improvinglives | 231

About Report | Metric Tables

2016-2017 2013-2017
AnnualFive Year
ChangeChange%%Greenhouse Gas— Metric

Metric Units

RY-2013

RY-2014

RY-2015

RY-2016

RY-2017

Total Volatile Organic
Compound Emissions(Absolute)

Metric Tons

5,430

5,550

4,780

4,630

4,500

-2.81

Total Volatile
Organic Compounds
Emissions (Indexedto Net Sales)

Metric Tons per
Net Sales(MM $USD)

0.176

0.174

0.158

0.154

0.142

-7.79

Energy — Metric

Total Energy Use(Absolute)

Metric Units

MMBtus

RY-201328,700,000

RY-2014

29,100,000

RY-2015

28,400,000

RY-2016

29,000,000

RY-2017

MWh

Total Energy (Indexedto Net Sales)

MMBtus per Net
Sales(MM $USD)

Renewable Energy% of Total Electricity
Use

Total Fuel Oil #1,#2, #6
Total Jet Fuel

Total Propane

MMBtus

MMBtus

MMBtus8,400,000

929

8,850,000

913

8,320,000

937

0.50

1,490,000

143,000

138,000

1,630,000

161,000

192,000

1,330,000

153,000

170,000

8,490,000

962

7.60

1,200,000

159,000

190,000

Metric Units-17.1

Zero Landfill% of Total
Manufacturing Sites-19.3

Waste Disposed:
Landfill, Treatment
and Incineration(Absolute)

Metric Tons

Waste Disposed:
Landfill, Treatment
and Incineration(Indexed to Net
Sales)

Metric Tons per Net
Sales (MM $USD)

Waste by Disposal
Type, Incineration

2016-2017 2013-2017
AnnualFive Year
ChangeChange%%29,600,000
2.07

Total Energy Use(Absolute)

Waste — Metric

3.14

8,670,000

935

17.9

1,130,000

138,000

177,000

-2.81

-13.2

-6.84

-24.2

-3.50

28.3

Total Gasoline andDiesel

MMBtus190,000

209,000

270,000

155,000

155,000

Total Coal

MMBtus

0

0

0

0

0

Total Natural Gas

MMBtus15,500,000

15,900,000

14,700,000

15,400,000

15,700,000

1.95

1.29

Total Electricity
Consumption

MMBtus

10,300,000

11,100,000

10,600,000

10,700,000

11,100,000

3.74

7.77

Total SteamConsumption

MMBtus902,000

1,010,000

1,130,000

1,180,000

1,220,000

3.39

35.3

Total Heating
Consumption

MMBtus

18,300,000

19,100,000

17,700,000

18,300,000

18,500,000
1.09

1.09

Total Heating
ConsumptionMWh232 | 3M 2018 Sustainability Report

5,370,000

5,590,000

5,190,000

5,360,000

0.00

RY-20142016-2017 2013-2017
AnnualFive Year
ChangeChange
%%RY-2015

RY-2016

RY-2017

28.2

26.6

27.9

4.89

146,000

153,000

158,000

160,000

159,000-0.625

8.90

4.74

4.80

5.21

5.33

5.03

-5.63

6.12

Metric Tons

43,20044,20045,20044,80045,100

0.670

4.40

Waste by Disposal
Type, Landfilled

Metric Tons

103,000

109,000

112,000

116,000

114,000

-1.72

10.7

% Data Coverage
Total Waste(Absolute)

%

97

98

97

98

98

0.00

1.03

0.646

136

-5.83

RY-2013-18.4

Starting in 2016, waste disposed and waste by disposal type does not include waste-to-energy. Total hazardous and total nonhazardous waste
below includes waste-to-energy.
Total Hazardous
Waste (Absolute)

Metric Tons

39,40041,10045,40043,80043,8000.00

11.2

Total Nonhazardous
Waste (Absolute)

Metric Tons

153,000

164,000

172,000

180,000

187,000

3.89

22.2

Total Waste Diverted(Absolute)

Metric Tons

274,000

287,000

296,000

284,000

306,000

7.75

11.7

Waste-to-Energy

Metric Tons

45,70051,90060,00063,40071,80013.2

57.1

Onsite Recycle &Reuse

Metric Tons

66,00069,50065,50056,60060,300

6.54

-8.64

Offsite Reuse

Metric Tons

32,00031,90031,30027,60031,600

14.5

-1.25

Offsite Recycle

Metric Tons

131,000

134,000

139,000

136,000

142,000

4.41

8.40

5,430,000#improvinglives | 233

About Report | Metric Tables

Water — Metric

Metric Units

Total Water Use(Absolute)

Million Cubic
MetersTotal Water Use(Indexed to Net
Sales)

Million Cubic
Meters per Net
Sales (MM $USD)

Sites located inwater stress/scarceareas; water sources
significantly affectedby withdrawal ofwater with water
conservation
planning efforts

Total Number

RY-2013

RY-2014

RY-2015

RY-2016

RY-20172016-2017 2013-2017
AnnualFive Year
ChangeChange
%
%

43.3

42.5

42.2

44.8

46.0

2.68

6.24

0.001400.001340.001390.001490.00145

-2.68

3.57

22

27

25

25

25

0.00

Supplier Responsibility
2016-2017 2013-2017
AnnualFive Year
ChangeChange%%MetricMetric Units

RY-2013

RY-2014

RY-2015

RY-2016

RY-2017

Total Number ofSuppliers

Total Number

107,000

95,80098,50088,20085,100

-3.51

-20.5

Total Number ofSupplier Reviews

Cumulative Number(since 2008)

3,210

3,880

4,570

5,120

5,790

13.1

80.4

13.6

3M uses the World Business Council for Sustainable Development (WBCSD) Global Water Tool to screen site locations for water stress/scarcelevels and prioritizes conservation plan development based on internal criteria.

Health and Safety
2016-2017 2013-2017
AnnualFive Year
ChangeChange%%MetricMetric Units

RY-2013

RY-2014

RY-2015

RY-2016

RY-2017

Global Lost Time
Incident Rate

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

0.339

0.355

0.321

0.304

0.344

13.2

1.47

Global Recordable
Incident Rate

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

1.41

1.45

1.22

1.20

1.16

-3.33

-17.7

Work Related
Fatalities - 3M
Employees

Total Number

1

0

0

1

0

Work Related
Fatalities - 3M
Contractors

Total Number

1

0

0

0

1

Work Related
Fatalities - Total
NumberTotal Number

2

0

0

1

1

234 | 3M 2018 Sustainability Report#improvinglives | 235

This has been a real eye-opening
process for these kids. You can
see the light bulbs go off when
they realize there are people out
there who do the kinds of things
they want to do professionallysomeday.
Projects like this help us, andcompanies like 3M and BBDO,
learn how to build a partnershipthat exposes more kids ofcolor in our community to thispotential career field. That’s areally powerful thing.
Bobby Rogers
JXTA Graphic Design Lab Lead