Im
p
ev ro
er vi
n
lif y ge
2019
Sustainability
ReportGrowing our businessby enabling action
and impact on someof humanity’s greatest
challenges.

Skin mattersPg. 26
Clean your room
Pg. 29Outside-the-box
thinking
Pg. 24

Contents

Our leadership

Feature stories

About report

What we create

How we work

Who we are

Message from our CEO

4

Feature stories

8

Introduction

46

Introduction

86

Introduction

190

Report scope and boundaries

220

Message from our CSO

6

Facility spotlight36

3M Value Model48

Corporate governance88

Our customers

192

Indices to GRI and UNGC226

Our Vision

49

Enterprise risk

96

Innovation management

198

Assurance statement244

Our Values

49

100

Our products

210

Metric tables

250

Our Strategic
Sustainability
Framework

51

Corporate Code of
Conduct
Human rights

110

Global challenges

52

Compensation

120

2025 Sustainability Goals

60

Employee programs

124

Communities

64

Health and safety

136

Employee diversity andinclusion

72

Environmental
management

142

Recognition

Raw materials

148

80

Water

154

Climate and energy

160

Suppliers

176

Wholeadership
Our
we areTitle
A messagexxxx from our CEO

3M 2019 Sustainability Report#improvinglives

A message from4

• Science for Community: Create amore positive world through science,and inspire people to join us

In December 2018, we announced
a major initiative as part of thisnew framework: Beginning in
2019, every new 3M product willarticulate a Sustainability Value
Commitment, demonstrating
how it drives impact for thegreater good. Because 3M
launches approximately 1,000
new products each year, crossing
many industries and geographies,
the impact will expand greatly
with each successive year.

Sustainability initiatives under our
new framework in accordancewith the United Nations Global
Compact and its principles.
And we invite you to join us.

– Mike Roman

Chief Executive Officer

Looking ahead, we will continue
to step up our leadership toward amore sustainable future — in ourown operations, and in solutions
for our customers. In 2019, weplan to announce substantial new

Sc
C ie
om n
c
m ef
un o
ity r

3M is a longtime leader in
Sustainability, going back decades
to our ground-breaking Pollution
Prevention Pays program, whichhas prevented more than two
million tons of pollution. We havesince built on that leadershipby continuing to reduce ourown footprint; since 2002, forexample, we have reduced ourgreenhouse gas emissions by nearly
64 percent, while doubling ourAt the same time, we’ve invested
more to create a wide range
of innovative solutions that are
helping our customers be moresustainable — from strengthening
solar and wind power, to making
businesses and homes more energy
efficient. Last year alone, ourproducts helped customers avoid
nearly 15 million metric tons CO2
equivalents emissions through useof select 3M product platforms.

• Science for Climate: Innovate todecarbonize industry, accelerate
global climate solutions, and improve
our environmental footprintr

We know that we can grow ourbusiness while collaborating
to solve some of humanity’s
greatest challenges. And we knowthat innovation isn’t innovation
without Sustainability.

revenue. We’ve also made progress
on 3M’s 2025 Sustainability
Goals, and last year exceeded ourtargets for renewable energy andreducing manufacturing waste.

• Science for Circular: Design solutions
that do more with less material,
advancing a global circular economy

Sc
C ie
irc n
ul ce
ar fo

At 3M we are apurpose-driven
enterprise.

While 3M has a strong foundation,
we know that we have the ability— and the responsibility — to doeven more. Going forward, weare focused on three priority
areas where we can make an evengreater impact on the world.

Sc
C ie
lim n
at ce
e fo
r

Mike
Roman

5

Our leadershipA message from our CEO

3M 2019 Sustainability Report#improvinglives

A message from

Gayle
Schueller

2018 was a big
year for Sustainability
at 3M.
We have a strong history ofleadership in setting goals that drive
environmental stewardship andpollution prevention, and advance
health and safety in communities
around the world. We’ve madesubstantial progress against thoseambitious energy, water, andclimate 2025 targets — and we’recommitting to do even more.

can partner with our stakeholders
to make the biggest impact.
Building on our global capabilities
and diverse technologies, we arefocusing on three priority areas:
Science for Circular,
Science for Climate, andScience for Community.
Using this framework, we aredeveloping new milestone targets
for air, energy, water, and waste.

The world faces tremendous
challenges in this time of
unprecedented change. Scienceplays a critical role in building aresilient future where everyone
can thrive. At 3M, science is at theheart of what we do. We collaborate
with our customers, governments,
and communities — with theambition to improve every life.
In this pivotal moment, we’vedeveloped a new Strategic
Sustainability Framework to direct
our efforts to areas in which we

6

3M CEO, Mike Roman, announced
this new business strategy inNovember. One month later
we announced our first new
goal that embeds Sustainability
into the pipeline that produces
3M’s diverse global products.

Beginning in 2019, every
3M product entering
the new productcommercialization
process will include
a Sustainability Value
Commitment that
demonstrates how it
drives impact for thegreater good.

We recognize that no one
company or community alone cansolve the world’s Sustainability
challenges. We’re using thisframework to engage with ourtalented employees and global
stakeholders to make connections
and establish partnerships tomake even greater progress.
It has been an exciting andpromising year for Sustainability at
3M, and going forward we expect
to share more announcements
about new goals and partnerships
as we continue our journey asa purpose-driven enterprise.

– Gayle Schueller
Vice President and Chief
Sustainability Officer

Creating products that use
energy efficiently and makethe best use of the Earth’s
resources is not new at 3M. From
our automotive electrification
technologies that power lighter,more durable, energy-efficientconnected vehicles, to our filtration
technologies that protect people
and filter air pollution, our products
and partnerships are changing theworld. Sustainability goals are now
considered in the earliest stages ofevery new product’s development.
7

Introduction

st Fe
or a
ie tu
s re

Feature stories

8

3M 2019 Sustainability Report#improvinglives

A legacy of leadership

10

Clean your room28

3M takes front-row seat12

3M inhaler connects

30

Scrub sponges

14

Rock for the ages

32

Innovative tools and tactics

16

Bringing smiles

34

Carpooling

20

Facility spotlight

Power to the pipeline

22

Outside-the-box thinking

24

Skin matters

26

Ciudad Juárez, Chihuahua,
Mexico36

Cynthiana, Kentucky

38

Shanghai, Xin Qiao, China

40

Cordova, Illinois

42

9Feature stories

Introduction

A legacyof
leadership
3M actively pursues Sustainabilityinspired innovation. This is as true
today as it was more than four
decades ago, when 3M launched
its groundbreaking Pollution
Prevention Pays (3P) program.
When the 3P program waslaunched in 1975, the conceptof applying pollution prevention
on a company-wide basis anddocumenting the results was anindustry first. Since then, employees
have completed more than 15,300
3P projects, prevented morethan 2.5 million tons of pollution,and saved nearly $2.2 billion.
In the 1990s, we began publicly
reporting progress on Sustainability
goals. In 2015, we established a
new set of ambitious 10-year (2025)
goals addressing issues ranging
from raw materials to educationand development. And in 2018, 3M
was listed for the 19th straight year
on the Dow Jones Sustainability
Index, a global stock index touted as
the gold standard for Sustainability
among corporations worldwide.

10

focus areas of the Sustainability
framework; and (3) uncover themost effective ways to build
engagement among stakeholders.

Among the key
findings:
Shortly following, 3M’s executive
team selected a small focus group
to develop the foundation of thisnew strategy. With the foundation
established, more than 80 company
leaders and subject-matter experts
convened. Using Lean Six Sigma
methodology, external insights,
and with bold leadership in mind,
this team added depth to theframework by identifying thecurrent state and opportunities.

• Most material issues for 3M
fit well into the three focus areasof our Sustainability strategy

In 2018, 3M took several steps
to set an aggressive long-term
strategy for the company, with
the intent to use our passion, andscience, to tackle challenges where
we can make the biggest impact —challenges critical to a sustainable
planet and the people living on it.

“Because 3M is a science-based
company with diverse operations
and a large product portfolio
serving nearly every industry
across the globe, we’re in a uniqueposition to make impact ourselves,and enable impact by others,” says
Cassandra Garber, 3M Global
Sustainability Leader. “Our new
Strategic Sustainability Frameworkdemonstrates where our critical
opportunity as a company meetsthe critical opportunity of our world
and gives us a means of prioritizing
how to most effectively take action.”

At Investor Day in November,Michael Roman announced the 3M
Strategic Sustainability Framework,
which focuses on three areas inwhich we will partner to makethe greatest impact: Science for
Circular, Science for Climate,and Science for Community.

It began in July, when new 3M
Chief Executive Officer, Michael
Roman, announced that advancing
Sustainability at 3M is a priority
for us, our stakeholders, andour customers. It’s at the heartof who we are. He asked what
it would mean to be visibly
leading, and innovating, for amore sustainable future.

Building from the strategy’s
foundation, 3M launched aninternal survey and commissioned
Globescan, a public opinion
research consultancy, tointerview external stakeholders
globally. The goals of this work:(1) identify the social, economic,
and environmental issues 3Mshould focus on; (2) test the three

inspires a frameworkfor greater good
By any measure, 3M’s commitment
to Sustainability is not new. And by
no means has it been insignificant.
But given the actions taken in
the past year, it’s clear we now
have even greater ambitions forworking toward the greater good.

2018: the year
momentum multiplied#improvinglives

3M 2019 Sustainability Report• Stakeholders overwhelmingly
show a strong interest in
engaging and collaborating with
3M on Sustainability issues• Stakeholders encourage 3M to bebold and share a science-based
point of view for each pillar

Putting our products
where our purpose is
In December, at the annual United
Nations Climate Conference(COP24), we shared our firstmajor goal in conjunction with
the Strategic Sustainability
Framework: Beginning in 2019,
every new product that enters
3M’s commercialization process
must have a Sustainability Value
Commitment demonstrating how it
drives impact for the greater good.
Requiring a Sustainability Value

Commitment in all new productsbuilds on 3M’s history of creatingproducts that emphasize
reuse, recycling, and reduced
resource use. For example:• Roofing materials that improve
air quality and address climate
concerns, like our awardwinning 3M™ Smog-reducing
Granules for rooﬁng shingles• Automotive electrification,
powering the future of mobility• Indoor freestanding devices that
attract and capture airborne dust,lint, dust mite debris, mold spores,
pollen, pet dander, smoke, smog,
bacteria, and viruses from theair passing through the filter• Scouring solutions that use up to
100 percent recycled materials

3M launches approximately 1,000
new products each year, with asignificant fraction of its revenue
generated from products releasedin the past five years. The multiplier
impact of this Sustainability Value
Commitment on our productportfolio will be immense.

Reaffirming acommitment torenewable
The year 2018 culminated withfinalizing plans for a stepped-up
commitment to renewable energy,
doubling our current 2025 global
goal and switching our St. Paul,
Minnesota, headquarters to 100
percent renewable electricity,
effective March 1, 2019. The
goal is now to convert our entire

operations across 70 countries torenewable electricity by 2050.

And the journey has
just begun
Science operates within a set ofrules. It follows specific methods.
It delivers proof and proves cause
and effect. But science also
breaks boundaries, challenges thestatus quo, and improves lives.
As a company rooted in scientificexploration and the belief thatevery problem has a solution, weare applying our technologicalexpertise to help solve some of
the world’s biggest challenges.
The challenges we must tackle fora sustainable future don’t always
follow clear rules or methods —but we see them clearly. They
are broad. They are interrelated.
They are solvable. We knowscience can help tackle them.
We are looking at ways to build
purpose into leadership andtalent development across thecompany, to recognize business
opportunities that help thecompany grow while addressing
societal issues. We cut acrossindustries and silos to collaborate
with suppliers, customers,
and communities by working
together toward building a more
resilient world. We have a unique
opportunity to apply our passion
and collaboration to help theworld prosper, and we’re looking
forward to continuing the journey
as a purpose-driven enterprise.

11

Feature stories

Science for Climate

3M 2019 Sustainability Report

3M takes
front-row seatin United Nations’ panel
on climate change
When you do an online search of
the term “climate change,” you get
more than 400 million results.
And one of the most impactfulorganizations appearing in theseresults is the Intergovernmental
Panel on Climate Change (IPCC).

Established in 1988 by the World
Meteorological Organization andthe United Nations, the IPCC
provides scientific, technical,
and socioeconomic assessmentson the state of climate change
and the risks associated withit, along with detailed policy
guidelines and recommendations
for the world’s policymakers.
For 13 years, 3M has had a frontrow seat to the IPCC proceedings.
3M EHS Laboratory Manager
Brian Mader is one of 188 authors
and review editors from academia,
national laboratories, industry, andnon-governmental organizations(NGOs) who currently evaluate
and write reports on various areas
associated with climate change.

12

Each member
country in the United
Nations nominates
people to represent
their country on
different climate
subjects. Mader ispart of a 32-member
committee that
focuses on industrial
processes andproduct use.
Mader was nominated in 2005 by
the U.S. Environmental Protection
Agency, who liked the work 3M wasdoing on greenhouse gases (GHG):“When we did our first GHG report, it
was new territory for us. We had todevelop a lot of our own methods todetermine our GHG inventory, andwe did that. When the EPA foundout there was a desire on the partof the IPCC to write guidelines for
how countries could add up theiremissions, they recommended me.”The selection worked out well.
In 2007, the IPCC was awarded
the Nobel Peace Prize “fortheir efforts to build up anddisseminate greater knowledge
about man-made climate change,
and to lay the foundations forthe measures that are needed tocounteract such change.” Mader
was formally acknowledged forhis contribution to that effort.
As science progresses, so do the
IPCC guidelines. Currently, thegroup is working on its second
year of refinements for the 2019
guidelines. Updates are primarily
new GHG measurement methods
companies and organizations
can use, but also new categories.
Take, for example, the smeltingof rare earth metals: In 2006, no
method existed to estimate GHG
emissions from rare earth metal
production, but now there is, so
there’s a new section on that.
About the process, Mader says,“You spend time talking about
exact wordings — like, shoulda procedure be listed as goodpractice versus best practice? —and then you form a consensus,
always based on science.
“Given the current contentious
political climate, it’s admirable that
IPCC reaches out across countries,
across industry, academia,
government, and NGOs. WhenI go to the meetings, it’s verymuch a mixture of these folks, allworking for a common cause.
“It’s satisfying, too, that 3M thinks
it’s important enough to support
my involvement in this effort.”©FAO/Alessia Pierdomenico

13

Feature Stories

Science for Climate#improvinglives

3M 2019 Sustainability Report

Scrub
spongesthat scrub out waste
In the past, society followed
a linear economy in which
companies made products, andcustomers used and disposed ofthem. In recent years, people haveincreasingly embraced a circular
economy, where the goal is todesign out waste, keep products
and materials in use, and integrate
more renewable raw materials.
One new example of thecircular economy at work — in
the home — is Scotch-Brite®
Heavy Duty Scrub Sponges.
These iconic yellow sponges
with a green scrubbing layer
are a top-selling scrub sponge
brand in the U.S. They remove
tough, baked-on messes, whichmakes them ideal for kitchen,
garage, and even outdoor use.
Just as important, when customers
in the U.S. use their favorite
sponge now, its ability to clean
won’t be its only advantage.

14

That’s because a recent 3M
innovation has made it possible
for us to begin making the green
scrubbing fibers from 100 percent
recycled content (including an
average of 35 percent postconsumer recycled content).
With this change, 100 percent
recycled scrubbing fibers will
not only be incorporated into
Scotch-Brite® Heavy Duty Scrub
Sponges, but also in U.S. versionsof the following 3M products:• Scotch-Brite® Non-Scratch
Scrub Sponges (blue)• Scotch-Brite® Gentle Clean
Scrub Sponges (pink)

the Consumer Business Group, andthe Scotch-Brite™ Brand,” says
Marketing Manager, Lisa Bloomer.
“We’re pleased to combine thisexciting material innovation thatleverages recycled content with thesuperior scrubbing performance ourcustomers rely on with our brand.”Each of thesescrubbing products,
by the way, will
provide performanceequal to sponges
made without
recycled content.
Learn more on the
Scotch-Brite™ Brand here.

• Select Scotch-Brite®
Dishwand Refills• Scotch-Brite® Non-Scratchand Heavy Duty Scour Pads
“Enhancing our products to fit thecircular economy is a focus at 3M,
15

Feature stories

Science for Community

Innovative
tools andtactics
help 3M work
toward training goal
Health and safety professionals
around the world need to stay
up to date on the latest training.
This means access to educational
content to learn, share, experience,and make a difference. One of 3M’s
2025 Sustainability Goals revolves
around training. By building on
our existing customer education
programs, we are looking to help
educate individuals on worker
and patient safety in both healthcare and industrial settings.
Here are two examples of programs
that are helping us reach this goal.

#improvinglives

3MSM Health Care
AcademyEducation and training have always
been part of the value provided
to customers of 3M Health Carebusinesses. In 2014, an insightdriven design solution, 3M’s
Health Care Academy, establishedbest practices for validating
intuitiveness and usability ofthe eLearning experience. The
solution was created as an
educational platform that connects
industry leaders, scientists, andinventors to improve professional
expertise and patient outcomes.
Says Lisa Edstrom, Global Leader
Health Care Academy, “Until
3M introduced the Health Care
Academy, we lacked a unified
and reliable global resourcefor providing education to ourcustomers. From a technology
standpoint, we didn’t havea consistent way to deliver
content and gather feedback
from our customers.”
Before creating anything, Edstromand her team first did deep-diveresearch with customers andconducted a competitive analysisof training platforms. Based onwhat they learned, 3M launched16

the Health Care Academy online
platform in 2016, then added
mobile capabilities in 2018 —so health care professionals
could download courses fromtheir phones, learn at theirconvenience, and monitor theirpersonal progress online.
At the same time, there has
been a focus on the content
itself — making it as relevant andengaging as possible for healthcare professionals. (By the way, 75
percent of the content is accredited
for continuing education.)content, which will allow us tocreate new content that’s evenmore relevant to people whose
everyday job is improving lives.”

Oral Care
Master Class
Conference
In October 2018, more than
400 oral care professionals from
Poland and Ukraine gatheredin Lodz, Poland, for the second
edition of the 3M Oral Care
Master Class Conference — threedays of live demonstrations,lectures, certification courses,
and practical workshops for both
dental and orthodontic practices.

With the addition of 50 new
offerings in 2018, the total library
now consists of more than 1,200
courses. In addition, attendance atlive webinars grew to 32,000 in
2018. And Health Care Academy
content is now offered in 33
countries and 15 different languages.
In total, 3M has educated over
350,000 professionals around theglobe through in-person events,
webinars, and online education.

Participants in this interdisciplinary
event included dentists,
orthodontists, dental assistants,
dental clinic managers, and a rosterof internationally known lecturers,
including instructors from thehighly regarded Style Italiano group.

What’s more, things continue to
evolve. “Practically every month
we’re taking steps to make ourplatform more robust,” Edstromsays. “Especially important tome is that we’re now able to
track user feedback regarding

Among other highlights at theconference were four “phantom
rooms,” which replicated actual
clinical working conditions. In theserooms, using phantom patients,
dentists participated in hands-on
workshops on adhesive cementing;ceramic, composite and porcelain
veneers; and advanced teeth
modeling from composite materials.
“The Master Class Conference
enabled attendees to learn
techniques that can elevatethe quality of their work andsave them time,” says Grzegorz
Grzegorz, 3M Regional ScientificAffairs & Education Leader. “Justas important, these techniques
can help them improve thelives of their patients.”“The conference has been an
excellent way for us to strengthen
the bond we have with ourclients, and for them to learn
from each other,” he says.
More information about
this event can be found at
oralcaremasterclass.com.

17

Feature stories

3M
Personal
SafetyDivision
AcademyIn a rapidly evolving businessand occupational health andsafety landscape, one thingremains constant: the need for
effective training and education.
To that end, 3M’s Personal Safety
Division(PSD) Academy offersa variety of tools and software
to support the safety training
needs associated with personal
protective equipment (PPE),
including eLearning opportunities,
demonstration vehicles, safetyroadshows, and even virtual
reality learning experiences.
One example: For more than 10
years, the PSD team in India has
been sensitizing the government’s
Ministry of Labour & Employment(MOLE) and the Directorate
General, Factory Advice Service
and Labour Institutes (DGFASLI), a
technical organization within the
MOLE, on the need to enhanceawareness among the industrial
18

Science for Community

workforce on various aspects ofhealth and safety in general andon the right selection of PPE in
particular. This effort helped toestablish 3M as a subject-matter
expert in the PPE category.
In 2017, the collaboration reached
a new level when the first-everpublic-private sector Memorandumof Understanding (MoU) was
signed by 3M and the MOLE.
One concept brought to the MOLE
by 3M was “Safety on Wheels,” twomobile training units that would
travel to over 1.3 million small andmedium-size enterprises at 550
industrial clusters throughout India.
On board these 35-foot, fully
equipped mobile training
centers, 3M’s network of experts
conduct safety training anddemonstrations, educates workers
and safety officers, and talks aboutoccupational safety and preventionof injuries and disease. Among the
PPE products demonstrated by
the Safety on Wheels teams are
earplugs, eye and face protection
gear, respirators, and full-bodyfall protection harnesses.

send companies an official orderto have their employees visit thetraining units when they are in
their area or at their factory.

Since its launch in
September 2017, theprogram has trained
more than 92,000
industrial workers
across 902 industries
covering 16 out of a
total 29 Indian states.
Looking forward, the goal is
to train more than 1 million
users in the next four years.
Leading the Safety on Wheels teamfor 3M India is Vinay Pathak, Senior
General Manager – Technical, whosays, “This program was first of
its kind for the PSD. It has alreadybeen a great brand-building
initiative and promises to deliver
strong long-term benefits forcompanies and for the people whowork in industry in our country.”
Learn about 3M Safety Roadshow
in the United States here.

To support attendance, the MoU
signed between 3M India andthe MOLE enables the MOLE to19

Feature stories

Science for Climate#improvinglives

Carpooling:
3M global team works
together on electricvehicle batteries
In the automotive
industry, the roadahead looks very
different than theroad in our rearview
mirror.

Changes have come faster in recent
years, says Ray Eby, Vice Presidentof 3M Automotive Electrification,
and will continue to accelerate
in the next few years, “driven byenvironmental and safety demands
and the need to provide users
with the experience they expect.”
Individual vehicle owners
can see the benefits: greater
digital connectivity, lower
fuel consumption, reduced
maintenance costs, and,someday, driverless vehicles.

20

3M: plugged into the potential

And then there’s the reduction of
tailpipe emissions of operating
vehicles that run on electricity
rather than gas. Electric vehicles(EVs) reduce smog-forming andother pollutants harmful to humanhealth, along with greenhousegases, primarily carbon dioxide(CO₂). Typical passenger vehicles
alone currently produce 4.6
metric tons of CO₂ per vehicle
per year.1 According to the EPA
Greenhouse Gas Equivalencies
Calculator, it would take 5.4
acres of U.S. forests to sequester
the typical passenger vehicle’s
carbon emissions each year.

To date, the stationary energy
storage market has seen
rapid growth as utilities andconsumers have recognized thevalue in pairing batteries withwindmills and solar panels.
The EV market can be morechallenging than conventional
combustion engine vehicles.
Beyond the concern of the battery
pack delivering energy, automakers
need to consider the effects ofharsh temperatures, mechanicalvibrations, and weight. Autoelectrification designers must
consider the complete car
ecosystem, ranging from coolingsystems to power electronics, andhow those functions impact the
car’s powertrain design and safety.

Together, these industry changes
are expected to transform electricpowered automobiles from a niche
category to mainstream. According
to International Energy Agency
forecasts, the number of EVs on
the road will increase from 3 million
in 2017 to 125 million by 2030.2

3M is helping them meet thechallenge. Using many of ourtechnology platforms, weare producing EV battery
pack components for bothautomakers and major
automotive industry suppliers.

1https://www.epa.gov/greenvehicles/
greenhouse-gas-emissionstypical-passenger-vehicle.

Our involvement in EV battery
development includes bonding
tapes and adhesives to hold2https://www.cnbc.com/2018/05/30/
electric-vehicles-will-grow-from-3million-to-125-million-by-2030-iea.html.

battery components together,thermal management materials
that help take the heat away, and“light-weighting” products thatenable longer driving range.
Some examples:• 3M™ Novec™ fluid-based
technology is designed
to help cool and protect
electronics and batteries• 3M™ E-A-R™ cushioning
products help extend
battery life by guarding
against normal structural
vibrations and disruptions• High-temperature adhesives
and tapes to help form strong
bonds in battery packs sothey hold up even in themost extreme conditions• 3M insulating and shielding
materials help improve overall
battery performance

One global teamBecause so many technologies
are used in improving EV battery
performance, 3M leaders havedone away with traditional divisionboundaries and focused insteadon serving customer needs. Says

Brandon Bartling, an advanced
product development specialistin automotive electrification,“We don’t go to the customer
representing a division. We go tothem as 3M. We learn what thecustomer wants, then we bring thatback and share it with our team, so
we can all work together to solve
the problem instead of trying tofigure out who gets credit for it.”
3M automotive electrification
specialists in different regions
also work with their counterpartsin other parts of the world,
because although they sharesimilar technology, countryspecific manufacturers often
take a slightly different tack onwhat they want in an EV battery.
Electrification is enabling great
advancements in the auto industry,says Bartling, and 3M is right in the
middle of it. “In terms of circling
the wagons, and getting people
together on it, 3M is among theleaders in putting a concerted effort
around automotive electrification.”
Find out more about our EV
battery solutions here.

21

Feature stories

Science for Community

Power tothe pipeline:
the inside path to skilled
trades development
For Maureen Tholen, 3M Safety &Graphics and Industrial BusinessGroups Sustainability Director,
the lightbulb went on three years
ago. That’s when Tholen and somefellow 3M employees made thedecision to travel to Louisville,
Kentucky, to see what the SkillsUSA
national competition was all about.
“We went there to see whatmore 3M could be doing, andshould be doing, to support anorganization the company had
already been involved with formore than a decade,” she said.
Tholen and her teammates werefirst struck by the event’s footprint.
There were more than 5,000
competitors and nearly 2,000
judges and contest organizers fromacross the country. There werealso more than 100 categories in
the competition, from architectural
drafting to dental hygiene to
welding fabrication, many of whichmake use of 3M’s products.

22

Their next thoughts expanded thepossibilities: “We could see rightaway that SkillsUSA represented atremendous business opportunityfor 3M — an opportunity tohelp us create connections andbroader awareness of the 3M
brand among the next generationof skilled laborers, to help
industry and schools expand
education in science, technology,
engineering, and mathematics(STEM) fields, and to help us
create a pipeline of skilled workers
for 3M and our customers.”
The 3M team also felt there
was value in volunteering for aleadership role in the organization,
to have a voice in shaping thefuture of trade careers in America.
This last observation became a
reality in October 2018, whenTholen was named Chairpersonof the SkillsUSA Foundation, Inc.,the nonprofit, philanthropic armof SkillsUSA. In this position, shehelps guide strategic thinking as

the organization seeks to expand
its outreach from 360,000
students to a million in the next few
years, as well as build a stronger
alumni network, inviting past
SkillsUSA students to serve as
mentors, judges, role models, andpotential financial contributors
to future training offerings.

What enthuses Tholen most about
the potential in this organization?
“The greatest pleasure comes fromtalking to students and listening totheir stories. When you hear thosestories, see what they’ve alreadyaccomplished, and realize the great
opportunities they have in front ofthem, it’s very motivating for me.”Tholen will serve a two-year term
as Chairperson of the SkillsUSA
Foundation Board, which ismade up of representatives frombusiness, industry, organizedlabor, and others who assist in
fundraising and offer expert advice
and counsel to the organization.

Asked about Maureen and 3M,
SkillsUSA Executive Director
Timothy Lawrence said, “Having
an individual of Maureen’s caliber
leading our foundation will havea lasting impact on SkillsUSA
programs.”

3M is also the lead sponsorof the 2019 WorldSkills USA
team, selected and trained by
SkillsUSA. This sponsorship will
support the efforts of the 23competitors and their technicalexperts as they train to represent
the United States at WorldSkills™,
the largest international
showcase of the skilled trades,in Kazan, Russia, in August.

“When major partners
like 3M step up to
support us, it sends
a powerful signal tocorporate America
that we are doing
valuable work.
SkillsUSA could notexist without thislevel of industry
support.”A natural match forour 3M Science forCommunity pillar
3M support of SkillsUSA andWorldSkills is very much in linewith our pillar 3M Science forCommunity, says Francine Savage,
3M Health Care Sustainability
Director. “These are organizations
that every 3M business can
support. They enable productive
employment and sustainableeconomic growth through theinvestment and encouragement ofskill building for current and future
workers. Their community benefits
from 3M Science, via our products
and the expertise of our people.”

23

Feature stories

Science for CircularOutside-thebox thinking
leads to a sustainableshipping solution

Anyone who has shipped something
to a friend, family member, orbusiness contact knows the truth:
Packing an item for shipping
is a multi-step, multi-productprocess. First, you have to find theright-sized box, then add filler toprevent damage to the item you’reshipping, and finally seal yourpackage with tape. Lots of tape.
But after doing research with
consumers about the rigors ofshipping, 3M has come up with aneasier, simpler, sustainable option.
It’s called the Scotch™ Flex
& Seal Shipping Roll.
The Flex & Seal packing solution
eliminates unnecessary steps,
supplies, and space while
protecting the package contents
that are so important to you andthe people who receive it.

24

In fact, compared withtraditional shippingboxes, testing has
shown that consumers
could save up to 50
percent of their time,
supplies, and spaceby using Flex & Seal
shipping rolls. No
boxes, no filler, andno tape are needed.

Flex & Seal rolls are 15 inches wideby 10 feet long and made with thesame material as plastic bags — soyou may be able to recycle it atretail stores that have a plastic
bag recycling program (ask yourretailer). One side of the roll is blue;
the other side is gray. When you
have something you want to send,
you cut a section of the roll thatcan wrap around the item you’resending. With blue side out, youfold the material over the itemand press gray side to gray side
together for a secure seal. Apply
your label and you’re ready to ship.
The material cushions to protect awide range of sizes and shapes. Plus,
the durable outer film resists waterand tearing, and can be written on.

25

Feature stories

Science for Community

3M 2019 Sustainability Report

Skin matters:
Raising up thelargest organ in
the human body

Skin is one thing we all have incommon. It’s the identity we sharewith the world. It’s also a guidethat can inform assessment andinfluence care. When we startwith skin, we make a different
commitment to the people we serve— one that considers health fromthe outside in, not just the insideout. It’s time to look beyond thesurface of skin. To treat it differently.
It’s time to think skin deeper.
“When you enter a hospital, or clinic,or other care facility,” says Heather
Cmiel, 3M Communications
Strategist, 3M Medical, “Skinoften becomes an afterthought.
Clinicians are more concerned withthe condition of a patient’s heart,lungs, brain, liver, and other organs.”
This incongruity is what led 3M
to launch a new awarenessbuilding, care-enhancing
program, “Thinking Skin Deeper.”With Thinking Skin Deeper, 3M islooking to elevate the importanceof skin, and the benefits of properly
managing its condition.
When the 3M Health Care businessembarked on this journey in June
2018, it decided it would create
three different buckets of content
to help boost appreciation forskin among clinicians, facility
administrators, purchasing managers,
and anyone else who interacts withpatients on a daily basis, and makes
decisions on what kinds of skin caresolutions will be used:

1. Education
In this program, the point ofeducation is to define the natural
life cycle of skin, explain why skinmatters, and describe the steps
that should be taken to ascertain its
proper care in a health care setting.

2. Empathy
Almost everyone has had anexperience that captures what
happens when skin isn’t carefully
managed. Sharing an incident
that has happened to them, or
someone in their family, or
someone they know is compelling
motivation for clinicians togive skin due consideration.

3. Solutions
This content bucket explainsdifferent skin conditions and what26

#improvinglives

advancements have been madeto address them. It’s not a productstory. This program is, after all, notabout short-term sales. It’s about
shifting mindsets, long-term —opening doors in a different way.
Many of the tools developed tohelp shift mindsets can be found at
thinkskindeeper.com. Among them:emotional, individual story videos;long-form expert panel videos on
the state of skin; a 54-page stateof skin report document; technicalwebinars; award recognition
for clinicians; and deeper divesinto the most common formsof skin problems, and how toprevent and/or treat them.
Communications have included
online messaging on LinkedIn,
periodic communications withthe database of clinicians 3M
has developed through theyears, and an audience-involving
interactive skin exhibit used at
professional conferences.
In the first few months after
launching the Thinking Skin Deeper
program, the 3M team has cometo one conclusion regarding
campaign metrics: The most prolificnumbers have been connectedwith the individual story videos,says Cmiel. “When clinicians hearthose stories, I think it triggers
something with them; that skindeserves to be higher on the list ofcare priorities than it sometimes is.”Matthew M. Cooper, Global Senior
Medical Director, 3M Health Care
Business Group, says, “Whenyou think about it, skin is actually
the largest organ in the body. It
is deeply entwined in what we
think about ourselves, and how
we present ourselves to the world.
With this program, we are training
to change the mindset about theimportance of caring for skin aspart of a holistic view of patientcare. It won’t be just what you doto repair the inside, but what you
do to preserve the outside thatcounts. Moreover, it will be one of
the ways people differentiate great
hospitals from average hospitals.”
There’s a Sustainability perspectivein this story, too. When you do
the right thing from the beginningwith skin, fewer materials areneeded and less waste is produced,
recovery time is shortened,
and less time and energy are
consumed treating compromised
skin. It all has a spiral effectthat is more than skin deep.

27

3M 2019 Sustainability Report#improvinglives

Clean
your roomtakes on a whole new meaning
In studies conducted by the U.S.
Environmental Protection Agency
and its Science Advisory Board (SAB),
indoor air quality has been ranked
among the top five environmental
concerns facing the public today.1
Fortunately, for over 25 years,
3M has been delivering cleaner
air to homes and businesses
with Filtrete™ Filters.
Now, there’s a powerful new
way to use this technology
to improve indoor air quality:
Filtrete™ Room Air Purifiers.
Combining an advanced air control
housing with a high-performance
Filtrete™ Filter, these freestanding
devices attract and capture airborne
dust, lint, dust mite debris, moldspores, pollen, pet dander, smoke,smog, bacteria, and viruses fromthe air passing through the filter.
In fact, the Filtrete™ True HEPA
(high-efficiency particulate arresting)

28

Filter removes 99.97 percent
of airborne particles2 that cancontribute to poor indoor air
quality — including PM2.5(atmospheric particulate matteras small as 2.5 micrometers
in diameter) and particles
1,000 times smaller than thosevisible to the human eye.

All Filtrete™ models feature either
three or four fan speeds, quiet
operation, and an electronic filter
life indicator. They are available forrooms up to 370 square feet in size.

Five Filtrete™ Room Air Purifiermodels have even earned the
ENERGY STAR® certification bymeeting strict energy-efficiency
guidelines set by the EPA.

1https://www.epa.gov/iaq-schools/whyindoor-air-quality-important-schools.

Learn more about Filtrete™
Room Air Purifiers here.

2As small as 0.3 micrometers from the air
passing through the filter media; initial
efficiency value. Features vary by model.

Certified models are measured
based on a ratio between themodel’s Clean Air Delivery
Rate (CADR) for dust and theelectrical energy it consumes.
An ENERGY STAR® logo on the
product packaging makes it
easy for consumers to identify
and purchase these consoles —helping save them money onenergy bills without sacrificing
performance, features, or comfort.
29

Feature stories

3M 2019 Sustainability Report

Science for Community

3M inhaler
connects
asthma, COPD patientsto better outcomes
It’s a story about 3M people
applying wonder and curiosity to
the development of new technologythat may well help improve andextend lives around the world.
More specifically, it’s abouta new advancement in lungdisease management now in theworks, thanks to 3M science.
For 60 years, 3M has partneredwith pharmaceutical manufacturers
in the development of inhalation
devices for patients withlung diseases like asthma
and chronic obstruction
pulmonary disease (COPD).

Traditionally, these partnerships
begin with the pharma company
asking 3M for help formulating adrug into an aerosol format – andfor device technology that delivers
the drug with the most effective
response from patients. 3Mthen responds with a design thatmatches the customer’s need.
In some cases, though, we simply
put wonder to work, innovating
using our own initiative.
That’s what 3M scientists didin 2014. They looked into the
future of drug delivery to see
what could possibly be done
to improve the management ofthese diseases with a device.
“The problem is that most patients
don’t use their inhaler properly, sothey’re not getting the treatment
they need,” says Rebecca
Blakey, 3M Global Business
Leader, Connected Respiratory
Health, Drug Delivery Systems.

30#improvinglives

In fact, up to
94 percent of inhaler
users make techniqueerrors when using theirdevices , and60 percent of patients
don’t adhere to the
medication scheduleprescribed by their
physician.
1

These issues have led to lessthan-desired outcomes and higher
rates of hospital admissions. Big
problems, when an estimated
334 million people worldwide areaffected by asthma, and another65 million people have moderate tosevere COPD — which is expected
to rise 24 percent by the year2034 and become the world’s third
leading cause of death.1,2 So in 2014,
3M Drug Delivery Systems decided
to take a proactive look into the
future and question how forwardthinking technology might address
device misuse and adherence issues.

Putting wonder
to work“We’ve done a tremendous
amount of research during thedevelopment of this technology
with patients, health care providers,and payers,” says Dr. Steven
Wick, Vice President, ProductDevelopment & Commercialization,
Drug Delivery Systems. “Theresult is the 3M™ Intelligent
Control Inhaler, a connected
device that improves both patienttechnique and adherence.”
The 3M™ Intelligent Control Inhaleris breath-actuated. A patient
simply opens the cap, breathes innormally, holds his or her breathin for a few seconds, then closes
the cap. Timing of breathing is not

an issue, nor is the forcefulness
with which one breathes in.
This is similar to some current
inhaler technology. But any
similarity ends there. The 3M™
Intelligent Control Inhaler also
has an “on board” display and acompanion mobile app that can
provide medication and refill
reminders — to promote adherence— as well as real-time coachingon inhaler technique that keeps
patients engaged in their therapy.
Blakey says, “The app provides
tips and insights that can help
patients improve their techniqueand better manage their respiratory
health. Patients can also choose
to share their data with clinicians
to help evaluate device usage andmonitor disease progression.”
The 3M™ Intelligent Control
Inhaler will be brought to market inpartnership with a pharmaceuticalcompany, and is projected to be inuse within the next several years.

Says Blakey, “Whenit does go to market,
we believe it will
engage patientsand lead to better
respiratory healthoutcomes.”
For more information on
the 3M™ Intelligent Control
Inhaler, click here.
1
Lavorini et al., 2008. Respir.
Med. 102(4):593-604.
2
Restrepo et al., 2008. Int. J. Chron.
Obstruct. Pulmon. Dis. 3(3):371-384.

31

Feature stories

Science for Climate

3M 2019 Sustainability Report#improvinglives

Rock forthe agesFounder and Executive Director of
Climate Resolve, a U.S. nonprofit
organization focused on local
solutions to global climate change.

According to the American Lung
Association, nearly four in 10
Americans currently live in counties
with unhealthy levels of groundlevel ozone or particle pollution.¹
Unhealthy levels, unfortunately,
can translate into cardiovascular,
respiratory, neurological, and otherphysical challenges2 that take theirtoll on people living in those areas.
At 3M, we’re working on many
ways to address these challenges,
which also affect people in othercountries around the globe.
One of the most innovative andpotentially powerful tools involves
sunlight and a new generationof coated roofing granules.
3M™ Smog-reducing Granules
for roofing shingles were created
and launched in 2018 by the 3M
Industrial Mineral Products Division.
Inspired by a roofing
manufacturer’s curiosity aboutsmog reduction, these tiny granules
32

have a specialized photocatalytic
coating that 3M applies to the basemineral on a shingle’s surface.
When sunlight hits the shingles,
the sun’s ultraviolet rays transformpollutants such as nitrogen oxidegases into nonpolluting, watersoluble ions that wash away.
In one early test, the manufacturer
used a blend of 95 percent
standard granules and five percent
3M™ Smog-reducing Granules
in its shingles. Shingles with thisblend were sent to Lawrence
Berkeley National Laboratoryfor evaluation, where they were
exposed to nitrogen oxides in areaction chamber. Nitrogen oxide
concentrations were recorded
in real time prior to, during, andafter UV illumination. The result?
Lawrence Berkeley calculated thateach ton of these granules usedin shingles has the capacity to
mitigate the smog created annually
by one car driven 3,000 miles.

“The roofing granules are a firstfor residential asphalt shingles,”said Frank Klink, 3M Senior
Laboratory Manager. “The new
3M granules will help roofing
manufacturers develop high-quality,
aesthetically pleasing shingles
that can turn any roof into an
active, smog-reducing catalyst.”
Lara Ughetta, Commercialization
Leader for 3M™ Smog-reducing
Granules, concurs: “We look atwhat the impact of this productcan be, and it’s pretty mindblowing when you start adding
up the aggregate effects ofindividual roofs being turned into
smog-reducing surfaces. It could
make a big difference, especiallyin markets where smog has
been a persistent problem.”“We view smog-reducing
technology, embedded into
mainstream roofing materials, asa great step forward in addressing
society’s air quality and climate
concerns,” said Jonathan Parfrey,

The 3M Industrial Mineral Products
Division has also developed otherproducts that help contributeto climate improvement.

Shrinking urban
heat islands
3M™ Cool Roofing Granules
are up to four times morereflective than other standard
colored granules, based on 3M
reflectivity test methods. They
help communities bring down
the urban heat island (UHI) effectin cities like Los Angeles, where
nonreflective impermeablesurfaces of urban roofs andpavements get warm enough inthe sun to actually heat the air.

Reflecting on
the commercial
roofing scene
3M™ Highly Reflective Granules
are a component in asphalt cap
sheets, installed on commercial,
low-slope roofs. They’re designed
to reflect 70 percent of solarrays for 30 years or longer ina category where many of thealternatives fail in 10 years or less.

Converting waste into
bonus businessAccording to Josh Orman,
Strategy and Marketing Manager
in Industrial Mineral Products,
the division is also developing
sustainable businesses around its
own waste products. “We know wewant to do more for Sustainability.
Reducing pollution is the right thing
to do. And it can offset a company’s
costs. Less waste is less cost andbetter for our environment. It’sa win-win.” Offering an example,
Orman says 3M is now selling fromits quarries formerly landfilledrock dust, or fines, to ceramic
tile manufacturers for use as acomponent in their tile slurries. Up
to 30 percent of the volume of tiles
can come from these fines. And
because of the chemical propertiesof the fines, manufacturers areable to make tiles while keeping
their kilns at a lower temperature,
thereby saving energy. These
fines can also be used to level out
construction sites and roadways.

rock by-product from 3M quarries
as a supplemental cementitious
material (SCM) in the productionof concrete. By promoting thisenvironmentally-progressivealternative to traditional fly ash,this fines reclamation process has
moved thousand of tons of SCM
to the company’s bottom line in
the first 12 months of the initiative.
Add this to other fines reclaimedby the 3M Little Rock, Arkansas,
plant — and sold for use inconstruction fill, tile manufacturing,asphalt roads, and other industrial
applications — and total mining byproduct sales exceeded hundredsof thousand of tons in 2018.
In its pursuit of business thataligns with Sustainability, the3M Industrial Mineral Products
Business leaves no stone unturned.
1State of the Air© 2017. American Lung
Association. Retrieved from www.lung.
org/assets/documents/healthy-air/stateof-the-air/state-of-the-air-2017.pdf.
2Health Effects of Ozone and Particle
Pollution. (2017). American Lung
Association. Retrieved from www.lung.org/
our-initiatives/healthy-air/sota/health-risks/.

Another waste reduction play, says
Orman, is using a fine-as-flour
33

Feature stories

Science for Community

Bringing
smilesto schoolchildren in China
In 2018, in partnership with FDI
World Dental Federation (FDI)
and the Chinese Stomatological
Association, 3M Oral Care
implemented an educational
program to increase oral
health knowledge and skills
among schoolchildren, and toelevate teaching of oral disease
prevention among teachersand oral health professionals.
None of this is coincidental, says
Eric Wenzel, 3M Oral Care
Global Business Director —Restoratives. “If you look at our
vision, it’s to promote lifelong oral
health. Working with different
organizations and associations
around the world like we did in thisprogram helps us live that vision.”
The Smile Around the World(SAW) program involved well over
3,000 elementary schoolchildren
and 90 teachers in the Chinese
provinces of Ningxia, Yunnan, andShaanxi, along with 115 volunteer
oral health professionals.
34

Jerry Spartz, 3M Oral Care Global
Business Team Leader, explains:“We chose China for two reasons.
One, there is a real need there.
They have a large, emerging
middle class that can benefit fromeducation. Two, our 3M China
colleagues were as enthused
about the program as we were.”
Initially developed by FDI, theSAW program was designed toteach good oral hygiene to young
children who have limited accessto oral health care, through culturaland educational programs thatare engaging and entertaining.
Program activities included:• Dentists and teachers using
teeth models to demonstrateproper toothbrushingtechnique to children• Children practicing toothbrushingin groups and checking eachother’s results using a “Healthy
Smile Happy Smile” booklet• Children sharing the sevensteps to healthy teeth with
their parents, as homework• Children drawing theirimage of an ideal smile

Complementing the activities
was a media campaign thatreceived exposure from 130+
newspapers, TV stations anddigital media outlets in China.
Most important: after the program
was completed, 99.1 percent
of children said they believed it
is very important to brush theirteeth every day, and the numberof children who said they werebrushing their teeth twice daily
increased by 20 percent.1“We are thrilled with the success of
SAW in China and the leading rolechildren played in this initiative,”says Dr. Kathryn Kell FDI President.
“Thanks to the support provided
by 3M and working with ourmember organization the Chinese
Stomatological Association, wewere able to raise oral healthawareness among 3,614 children
in western China. We look forward
to educating even more children
in 2019 and extending the reachof World Oral Health Day, so thattogether we can help lead theworld to optimal oral health.”“What I liked mostis that it reallydemonstrates how
good connections
around the world
can help 3M havean impact globally.
Our community
extends beyond theareas in which welive,” says O’Neill.
The program will travel to othercommunities and support World
Oral Health Day in 2019.
In other words, there’s a
lot here to smile about.
1https://www.fdiworlddental.org/
sites/default/files/media/documents/
fdi_smile_around_the_world-2018_
china-project_report.pdf

Mitsi O’Neill, Global ScientificAffairs, 3M Oral Health andPrevention, is equally enthused
about the prospects for the future.

35

Feature stories

Facility spotlight

3M 2019 Sustainability Report

Ciudad Juárez,Chihuahua,
Mexico3M facility spotlight

Water is a precious
resource everywhere, but
especially in a place like
Ciudad Juárez, Mexico.
A city of more than a million
people located just across the
Rio Grande River from El Paso,
Texas, Juárez sees meager
rainfall and many days with90 degree F heat every year.
According to the WBCSDGlobal Water Tool™, Juárez
is in a water-stressed area asdefined by the extremely highbaseline water stress value.1
The use of treated water inJuárez is a key to maintaining
the area’s water supply. This
is where a 3M partnershipis improving lives.
Edumex is a 3M-owned
maquiladora company thatprovides production capabilities
for 12 divisions of 3M. As amaquiladora, Edumex receives
raw materials from the U.S.,
36

assembles products in Juárez,and returns finished goods to
the U.S., along with any waste
generated in the production
process. The plant employs up to
6,000 full-time and 1,500 seasonal
workers — and provides food,health care, and transportationfor employees and their families.
The challenge for Edumex has
been water. Due to their heavy
water use and proximity tolocal neighborhoods, Edumex
and other maquiladoras inJuárez can actually “starve” thesurrounding areas of water.
But when Edumex sought ways tolower its dependence on potablewater, it made an unexpecteddiscovery: A city water treatment
plant located near the Edumex
facility had more treated water than
it knew what to do with — because
there was no way to share it, says
Laura Acevedo, Environmental,
Health and Safety (EHS) Manager.

“Only 7 percent of the water
treatment plant’s capacity
was being used,” according to
Acevedo. The rest was simply
being returned to drainage.
Edumex leaders and maintenancepersonnel explored ways togain access to the water fromthe treatment plant, and after
two years of discussions andnegotiations with the Juárez City
Water Department, they came up
with a way to lay a pipeline to theirfacility without having to dig up
local streets or spend city funds.
In 2016, this pipeline was
opened, and the treated water
flowed to three of five buildingsin the Edumex complex for use
in bathrooms and for irrigationof green areas. This is waterthat was formerly returned todrainage. Potable water was
still used for toothbrushing,handwashing, and food preparationin the company’s cafeteria.
In 2017, nearly 80 percent of
total water consumed in thethree Edumex buildings wastreated or recycled water. Only
20 percent was potable waterfrom the city’s aquifer. Acevedo
says the 80 percent figure
will go even higher in 2018.

#improvinglives

In 2019 and 2020, the remaining
two buildings in the Edumex
complex will be connected tothe treated water pipeline.

Total savings of potablewater on the campus
will be more than 50
million liters a year.
“We always knew there was an
issue with water in Juárez,” says
Acevedo, “but I don’t think weever realized how many benefits
would be possible from doing
something like this. The outcome
has helped reduce our draw on
the clean water system, we’vebeen able to plant and irrigate
more trees on our property andmake it possible for as many as
10 other nearby maquiladoras
to tap into this water supply.”
The city of Juárez is on the
bandwagon, too. They are willingto take on some of the cost oflaying pipeline, because they see
a benefit in doing so for Juárez
residential neighborhoods. To
prevent exhausting aquifer
reserves, the city is also working
to change local construction
codes. They are even talking
about doing a media campaign toraise awareness of the adverse
effects of not conserving water.

“Among the companies in this city,
Edumex has positioned itself as apioneer in the use of treated waterin its processes,” says Francisco
J. Núñez, Director of Regulatory
Compliance and Sanitation for the
Juárez City Water Department.
“They have been an example
to follow for other companies,
which also are gradually adopting
more sustainable practices.”“I give much credit for all ofthese good things to the Edumex
Maintenance Department,” says
Acevedo. “We dream, andmaintenance makes it happen.”
It should also be noted that Edumex
is a good corporate citizen inother ways. The Juárez facility
donates to multiple orphanages,
provides scholarships to students,
helps remodel classrooms at
the local technical university,
provides adult learning classes
for employees, and helps build
houses in the community.
In more ways than one, you could
call this an oasis in the desert.
1The World Business Council for Sustainable
Development Global Water Tool™ (WBCSD):
https://www.wbcsd.org/Programs/
Food-Land-Water/Water/
Resources/Global-Water-Tool.

37

Feature stories

Facility spotlight

Cynthiana,
Kentucky
3M facility spotlight

There are several ways Cynthiana,
Kentucky, stands out among
3M facilities in the company’s
worldwide operations.
For starters, it would be hard tofind a facility that’s more colorful.
3M Cynthiana, you see, makes
the world’s supply of Post-it®
Notes — which includes no lessthan 56 different colors (at lastcount) of the iconic 3M product.
Cynthiana is also one of seven
U.S. 3M facilities that sendno manufacturing operations
waste to landfills, and it’s thelargest of those facilities.
The effort to make the facility“zero waste to landfill” began in
2010, says Bryan Schroers, EHS
Engineer. “In the beginning, ourcross-functional team did a lotof dumpster diving and madea lot of trips to landfills. As wecame across waste streams
that could be identified, we

38

looked for ways to do something
besides send them to landfill.”“Since 2010, the facility has beenable to eliminate 360 tons of waste
per year that previously went tolandfills,” says Michael Thrun,
3M Cynthiana EHS Manager.
According to Eric Opland,
Plant Manager, “Right now, 97
percent of our facility’s waste
is recycled in some fashion.”
That said, reaching the zerowaste-to-landfill milestone in
the fourth quarter of 2016 was
not the end of the journey.
In 2018, the facility held anumber of kaizen (continuous
improvement) events, exploring
ways to improve disposal efforts,such as combining waste streams
where appropriate and authorized.
The Cynthiana EHS team also
participated in a 3M EHS Summit
in February 2018, attended by thecompany’s Consumer BusinessGroup. The goal of the summit:
to share best practices and, in
doing so, help other facilities with
their plans to improve employee
safety and deliver on the corporate
Sustainability initiatives. By theconclusion of the event, attendees
had developed a five-year planfor each manufacturing facility.
At 3M Cynthiana, commitment tozero waste to landfill is only oneof many Sustainability initiatives.
Says Thrun, “Every day, we’re also
looking at ways to reduce water,energy consumption, and volatileorganic compound emissions.”
In addition, through daily
production reviews, facility
leaders have identified five areasthat account for 80 percent
of recordable worker safety
events — pinch points, poweredindustrial vehicles, knife injuries,
housekeeping, and ergonomics.
Thrun says, “We have teams
assigned to each hazard, toidentify where the risks are, andconduct training in those areas
for all 3M Cynthiana employees.”“This, along with oversightfrom leadership, hasenabled us to reduce thenumber of recordable
safety events by 30 to40 percent in the last
two years.”— Michael Thrun, 3M Cynthiana EHS Manager

Community support
In addition to donating each year
to local nonprofits, employees
participate in a wide range ofvolunteer service activities — froman annual clean-up of Licking Riverto painting Cynthiana City Hall, tovolunteering time on community
boards. On average, 3M Cynthiana
employees donate about 2,500
hours annually to local nonprofits.
Finally, 3M Cynthiana stands
out in applying for and receiving
grants from the 3Mgives program.
In the last three years, grants

have been directed to Cynthianaarea organizations, including
security improvements for
local schools, support for 4-H
programs, and STEM-related(science, technology, engineering,and mathematics) educational
opportunities for students.
“I’ve been working at 3M for 18
years,” says Opland, “and givingback is one of the pillars of what we
do. This will always be the case.”
Learn more on 3M Cynthiana here.

39

Feature stories

Facility spotlight

Shanghai, Xin
Qiao, China
3M facility spotlight

The facility makes products for fourof the five 3M business groups:
Industrial, Electronics and Energy,
Consumer, and Safety and Graphics.

Waste
At 3M, the concept of continuous
improvement doesn’t begin
and end with products.
Proof positive of this canbe found in the company’s
facility in Xin Qiao, a suburb of
Shanghai, China’s largest city.
Opened in 1998 and currently
home for around 800 3M
employees, Shanghai Xin Qiao hasmade significant strides in recent
years to reduce waste, volatileorganic compounds (VOCs), water
consumption, and electrical usage.

40

The plant uses
five different
manufacturing
platforms —coating, converting,compounding,
extrusion, and nonwoven fabrication —to produce a wide
range of products,
including paper tape,foil tape, conductive
tape, structural andspray adhesives,
reflective sheeting,and fire protection
products.

Brian Peng, Shanghai Xin Qiao
Environmental, Health, and Safety(EHS) Manager, says, “In terms ofwaste reduction, we have optimized
our coating and mixing processes
to allow us to reuse solvent forcleaning and reduce the quantity ofhazardous waste we generate. We
also categorized the waste we had
been incinerating and found that
we could recycle some of it insteadof incinerating it. These efforts also
have the added benefit of reducing
our overall VOC emissions.”

Water
At Shanghai Xin Qiao, water
conservation and reuse opportunities
are continually evaluated. The
facility is reducing its use of citywater (potable drinking water) andreplacing with non-potable water.
At the same time, by developing
onsite storage for this non-potablesource, the facility has been able
to further reduce its dependence
on the city’s drinking water supply.

EnergyTo address new emission control
requirements established by the
Shanghai Environmental Protection
Bureau (EPB), 3M Shanghai Xin
Qiao is optimizing operation andmaintenance of its pollution control
equipment, regenerative thermaloxidizers (RTOs), and thermaloxidizers (TOs). This increase inpollution control equipment alsomeans an increase in consumptionof electricity and natural gas, so
actions have been taken to offset
this increase. A new solar systemgenerates about five percent of
the facility’s electrical power
requirements, including lighting,electric car charging, someprocess equipment, and hot waterfor employee use. A redesigned
local exhaust ventilation andcoating line oven process reduces
emissions air flow and energy
use. Behind the scene, an online
energy monitoring system tracks
energy use by production line every
minute, every day, every month.

VOC
In the past two years, continuous
improvement has also produced
reductions in VOC emissions.
Adhesive ingredients have beenredesigned, reducing solvent

use. Improvements in theemissions capture method has
reduced VOC emissions. RTOs
and TOs have been upgradedto increase their destruction
removal efficiency (DRE).
Together, says Peng, theseactions have reduced VOCemissions from about 500 tons
to about 140 tons per year in
the future, an achievement thatwas rewarded with a Shanghai
Green Supply Chain Award fromthe Shanghai EPB and an EHS
Achievement Award from 3M.
“We will work to continue tobring this number down, but it’s
encouraging to see the results
we’ve been able to achieve in thelast couple years,” says Peng.
And just so the facility’s emissionsadvanced products themselves
don’t get overlooked, it should be
noted that the facility manufactures
a wide range of water- andsolvent-based, low-VOC, and
GREENGUARD™ certified
adhesives for some of the mostdemanding applications in the world.
“Whenever customers areready to go greener,” says
Peng, “3M Shanghai Xin Qiao
is ready to take them there.”41

Feature stories

Facility spotlight

Cordova,
Illinois
3M facility spotlight

The population of Cordova,
Illinois, is less than 700.
So, it stands to reason thatwith more than 480 employees
working at the 3M facility
in that community, many ofthese employees come fromwell beyond the city limits.
It also explains why, when it
comes to stepping up to improve
the lives of people living in
the area, the people at 3M
Cordova put few boundaries
on their efforts. More on
this in a few paragraphs.
First, let’s talk business.

“One area we are focused on now
is waste-to-energy streams. We’re
actively identifying outlets thatcan convert our waste materials
to energy,” says Parent.

Opened in 1970, 3M Cordova
makes a wide variety of specialty
chemicals and adhesives. At
Cordova, they blend, react, andpurify hundreds of products usinga wide variety of technologies
throughout the facility. Ultimately,
these products are usedby other 3M manufacturing
facilities or go into industrial,commercial, and consumer
applications around the world
for a broad range of customers.
Novec™ 1230 Fire Protection
Fluid is one example of a productbeing produced at this high-techfacility. Novec 1230 is a clean
agent fire extinguishant, which wasdeveloped as a halon replacement
and hydrofluorocarbon(HFC) alternative.
Mike Parent, 3M Cordova Plant
Manager, is in contact withmanagers of the other four
divisional facilities at least once aweek, often comparing notes on
topics related to Sustainability.

42

Rich Stutzki, Environmental Health,
Safety and Regulatory Manager
at Cordova, says the facility has
also been active in developing andexecuting 3M Pollution Prevention
Pays (3P) projects, since that
program began in 1975. Throughout
the history of the program, thefacility has implemented morethan 500 3P programs, large
and small, that have prevented
over 145.8 million pounds ofair, water, and waste pollution.

A spirit of giving that
goes for miles
As mentioned, 3M Cordova
employees come from a broad
radius of communities in northwest
Illinois and northeast Iowa. This
leads to involvement in a wide
range of volunteer and fund-raisingprojects, which are directed by
the facility’s Community Giving
Committee and often suggested
by individual employees witha passion for various causes.

“Through the year,” says Stutzki, “weaverage one fund raiser a monthat the facility. One month it’s for a
Suicide Prevention organization in
Camanche, Iowa; the next month
we’re helping to buy food for a foodshelf in Fulton, Illinois. Around theholidays we have a sharing tree thatinspires employees to buy gifts forchildren in families who can’t afford
to buy them on their own. Projects
like this are happening all the time,in addition to year-long volunteer
efforts by many employees.”“In a way, supporting ourcommunities is a lot like addressing
Sustainability issues in our facility,”says Parent. “Our people arealways looking for ways to makethings better for the community.
Whether it is improving our
Sustainability performance,
volunteering for local charitableorganizations, or getting active intheir communities in a number ofways, like coaching or volunteeringwith local fire departments.”
Learn more on 3M Cordova: here.

43

Introduction

w W
e h
ar o
e

Who we are44

3M 2019 Sustainability Report#improvinglives

Introduction

46

Global challenges

52

3M Value Model48

2025 Sustainability Goals

60

Our Vision49

Communities

64

Our Values

49

72

Our Strategic
Sustainability
Framework

51

Employee diversity
and inclusion
Recognition

80

45

Who we are

Introduction

We arecommitted toapply scienceto improve
every life.

3M 2019 Sustainability Report#improvinglives

A sense of purpose
is at the heart of how
we approach every
business, every idea,
every product, every
community, and every
life we touch.
It is the foundation of all that
follows. Reflecting our core
purpose, 3M employees are
empowered and encouraged topursue purpose-driven innovation.
Working in a highly collaborativeenvironment, our scientists use 46
core technology platforms, ranging
from adhesives and abrasives,to sensors and electronics
materials. They leverage thesetechnologies to invent unique,customer-inspired productsthat touch our lives at home, atwork, and in our communities.

46

Sustaining our business, and ourplanet, means protecting natural
resources and empowering
individuals and communities
throughout the world to encourage
progress. And above all else, itmeans uniting under a common
goal: Improve every life.
Imagine a world where every
life is improved — where
natural resources are readily
available, people have access to
education and opportunity, andcommunities are safe, healthy,
connected, and thriving.
We aim to help make that world areality by designing a world where
9 billion people can thriveby applying boundaryless,collaborative science to sustain
the products, processes, andsystems that improve every life.
The resilience of our planet, ourpeople, and our business demands
it. This is the continued story of
our purpose: #improvinglives.

47

Who we are

3M Value Model

3M ValueModel
3M’s actions are guided by
our Vision and Values of
uncompromising honesty andintegrity. We are proud to berecognized worldwide as an ethicaland law-abiding company. As acompany, we are committed tosustainable development throughenvironmental protection, social
responsibility, and economic
success. Our Value Model makes
us unique among companies anddifferentiates us in the marketplace.
This Value Model links our Vision,
our fundamental strengths, thepriorities we’re driving, and
our Values as a company.
The power of 3M comes in how weconnect our fundamental strengths
to customers, and our fundamental
strengths support the heart of
3M: Technology, manufacturing,
global capabilities, and brand.

48

Our Vision

Our Values

3M continues to be inspired andmotivated by our corporate Vision,
which guides our work every day:The 3M Code of Conduct istruly what it means to be a 3M
employee. Our Code is aboutbuilding trust with stakeholders— and doing so through the
dedication of every employee tonever compromise that trust. It’s
about every employee “being 3M”:
inclusive, respectful, encouraging,challenging, and the championsof diversity and Sustainability.

3M Technology
Advancing Every Company

Vision3M Products
Enhancing Every Home

Strengths

3M Innovation
Improving Every Life
Technology

Manufacturing

Globalcapabilities

Brand

Priorities

Portfolio#improvinglives

3M 2019 Sustainability Report

Transformation

Innovation

ValuesPeople andcultureOur Vision helps define what wedo, how we do it, and where we
do it: advance, enhance, improve.
It’s about how we do it with ourtechnology, our products, andour innovation. It’s about where
we do it for our customers. And
it’s aspirational: Improve every
company, every home, and every
life — that aspiration drives
us as we look to the future.
In short, this Vision serves asa daily reminder to all of us ofwhat the 3M Brand stands for.

3M’s Value Model requires anintense focus on Sustainability.
In all aspects. It is at the heart ofour innovation. What we do in
Sustainability is what we practicein our operations; it’s what wepractice across our enterprise.
Taking these actions will truly
enable us to drive our Value Modelsustainably into the future.

How do we become the mostinclusive enterprise we canbe? By attracting top talentaround the world. That leads
to a much more diverse 3M, astronger 3M, a more creative
3M, a higher-performing 3M.
An essential value is supporting theindividual: respecting, encouraging,and challenging everyone in thecompany to be the best they
can be — and that requires theculture to make it happen. With
the support to reach their best,
3M employees succeed in theirindividual careers, as part of team,and as part of the entire enterprise.

49

Advancing Sustainability for 3M
is a priority. It’s not just for 3M,
it’s for all of our stakeholders.
It’s at the heart of who we are.

our passion for science. We believe
this is what makes us uniquelycapable to deliver on our purpose.
Our intent is to use our passion andscience-based approach to tackle
challenges most material to 3M,
and critical to the Sustainabilityof our planet, and the people
living on it. That is why we arecommitted to three priority areas:

We have set a clear commitment andan ambitious, long-term strategy forour business. One that will leverage

Science for Circular,
Science for Climate, andScience for Community.

Sc
C ie
irc n
ul ce
ar fo
Design solutions that do morewith less material, advancing a
global circular economy.

50#improvinglives

Innovate to decarbonize
industry, accelerate global
climate solutions and improve
our environmental footprint.

These priority areas build off thestrength of our existing 2025
Sustainability Goals as we apply
science to improve every life.
They also guide business decisions
and strategy, as well as how wefocus our efforts for local andglobal community impact.

Sc
C ie
om n
c
m ef
un o
ity r

Our Strategic
Sustainability
Frameworkr

Apply scienceto improve
every life.

3M 2019 Sustainability ReportrSustainability Strategic Framework

Sc
C ie
lim n
at ce
e fo

Who we are

Create a more positive
world through science andinspire people to join us.

51

Who we are

Global challenges

Globalchallenges

Looking at Sustainability
in terms of shared global needs.

Ourcommitment
Science operates within a set ofrules. It follows specific methods.
It delivers proof and proves cause
and effect. But science also
breaks boundaries, challenges thestatus quo, and improves lives.
As a company rooted in scientificexploration and the belief thatevery problem has a solution, weare applying our technologicalexpertise to help solve some of
the world’s biggest challenges on
raw materials, water, energy andclimate, health and safety, andeducation and development. The
challenges we must tackle for asustainable future don’t always
follow clear rules or methods —but we see them clearly. They
are broad. They are interrelated.
They are solvable. We knowscience can help tackle them.

52

We are looking at ways to build
purpose into leadership and talentdevelopment across the company,
to recognize business opportunities
that help the company grow while
addressing societal issues. We
cut across industries and silos
to collaborate with suppliers,
customers, and communities byworking together toward building
a more resilient world. We have aunique opportunity to apply our
passion and collaboration to help
the world prosper.

53

Who we are

Global challenges

Raw materials

Water

Climate and energy

Health and safety

The world’s population
is growing larger, living longer —and consuming more. With thisincreased pressure on our finite
natural resources and materials,
we must move beyond low-cost,
recyclable materials to renewableproducts. Companies that address
this issue not only help theplanet, they gain a competitive
advantage in the marketplace.

People consume it, farm with it,
and manufacture products with
it. Reducing water consumption
and improving water quality areimportant elements of water
stewardship. Aging infrastructure
and increased demand must
be addressed to assure sociallyequitable, environmentally
sustainable, and economicallybeneficial use and treatmentof water.

Access to a dependable energy
supply directly affects all
businesses and communities.
From air emissions to fossil
fuels, 3M takes a proactive
and collaborative approachto addressing energy demandand climate change — in ouroperations and for our customers.

Global health and safety issues
are prevalent in workplaces
around the world. Governments,
corporations, and consumers are
driving global demand for safety,
protection, health care, andfood safety solutions. Creative
innovation, technology, education,and collaboration are all critical if
we are to tackle these human healthand workplace safety concerns.

Improving raw material usage
through product design andoperational considerations provides
benefits throughout the supply
chain in material use, energy,
and transportation efficiency.
We will continue to innovate into
the future, developing renewable
alternatives for impacted resources,
revolutionizing recyclable materials,
and becoming more sustainable.

54#improvinglives

3M 2019 Sustainability Report

Some of our customers are finding
it difficult to source or deliver clean,accessible water. We help themsolve this problem by developing
technology that increases water
efficiencies and improves quality.

Energy usage and climate concerns
require systemic change, and we’rehere to help drive that forward.
Partnering with our customers will
help us understand their needs andaddress those needs. The issues
surrounding effective use of energy
resources and climate change arecomplex and interconnected.

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

We will continue to seek
solutions that promote energy
conservation, clean energy
infrastructure, and reductions
in greenhouse gas emissions.

For decades, 3M has had entire
business divisions focused on
creating products and services
for human health, protection,
security, and safety. We arecommitted to helping improve
the health and safety of people
worldwide so we can all focus
on what matters most to us.
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.

Education anddevelopment
At 3M, we believe science is justscience until you use it to improve
the world with the products andservices we offer. Our science not
only impacts our customers, butalso makes a differencein the way we work.
As a technology company, 3M
recognizes the importance ofwell-trained science, technology,
engineering, and math (STEM)
graduates as well as the criticalneed for a skilled workforce inadvanced manufacturing andvocational skills — we need brightminds to step into specialized roles
and help our company and ourcustomers solve future challenges.
We will continue to support
empowerment and enrichment
to enable people everywhere
the opportunity to live life
to their fullest potential.

55Our actions
Along our journey, we seek internaland external input on top social,economic, and environmental
global challenges. We utilize thisinformation to inform both ourreporting and strategic planning.
As a science-based company, we
include among our stakeholders
customers and consumers,
investors, government agencies,
industry organizations, subjectmatter experts and academia,
non-government organizations,and other corporations.

Stakeholder
engagement
3M’s stakeholder engagement
strategy on priority focus areas
continues to evolve. We continually
look to our stakeholders to help us
increase understanding, broaden
our awareness, seek technicalinput and expertise, and evaluate
possible collaborations andstrategic partnerships. We rely on
their counsel and expertise to help
guide us. We believe stakeholder
engagement should be based on
candid and authentic dialogue —grounded in the company’s values— and should contribute to theevolution of our strategic priorities.

56

Global challenges

Levels of engagement withstakeholders vary greatly bygeography, type, and function. For
example, 3M employees globallyare engaged frequently throughSustainability communications
and events with diverse content
based on our materiality topics.

Materiality
assessment
In 2014, 2016, and 2018, 3M
commissioned GlobeScan, an
independent research consultancy,
to assist us in better understanding
our stakeholders’ perspectivesof key issues, and assessing
our corporate reputation andleadership opportunities.
Through an in-depth interview
process conducted for the 2018assessment, stakeholders shared
their short (0 to 1 year), medium (1to 5 years), and long-term (10-plus
years) expectations for 3M. As
part of the process, they revisited
top focus areas identified in 2016
compared with current areas.
Stakeholders included in thecomparative assessment were
academia, consultants, customers,
governmental/regulatory agencies,group purchasing organizations,non-government organizations

3M 2019 Sustainability Report(NGOs), trade unions, 3M retirees,
and non-3M private-sectorbusinesses. At the same time,
3M conducted a similar process
through an internal online employee
survey. Following completionof the interviews, GlobeScan
analyzed insights and inputs fromthe stakeholders to develop ourevidence-based focus area matrix.

was incorporated into ourconsideration for our Strategic
Sustainability Framework,
milestones, and actions as we
continue to evolve and advanceour company purpose. Moving
forward, we will continue a
consistent rhythm to produce acomprehensive third-party focus
area (materiality) assessment.

From this matrix, 3M and thereaders of this report canunderstand stakeholder
expectations of the degree ofimportance our stakeholders placeon each issue, the ability of 3M tomake a positive difference on theissue, and the level of impact anissue may have on our reputation.

Data provided in this report includes
information on issues that were
found through this assessment
to have the highest potential toimpact our reputation and that areof great importance to internal andexternal stakeholders. Because
we are a diversified company,
several other environment-related
topics and performance indicators
relevant to various sectors of thecompany are also included in thereport. 3M’s Science, Technology,
and Sustainability Committee
reviews, approves, and assuresmaterial topics are covered in
our Sustainability Report.

Past, present, andfuture focus areas
From our 2018 assessment, the top
focus areas for stakeholders centeraround climate change, waste fromoperations, fresh-water shortages,
energy use, human rights, and the
reduction of toxic substances. Mostof these focus areas were perceived
to have increased in importancesince 2016, along with scarcity of
raw materials, water quality, social
equality, and ethical business.
The feedback from this assessment

All material aspects definedwithin this report are deemedmaterial for all entities within
the 3M organization. The
prioritization for the different
aspects may vary within 3M
operations and geographies,
but they are still material.

#improvinglives

2018 focus area assessment
Ethical businessClimate change

Human rights

Community
health & safety/
development

Transparency

Water quality
Energy use

Impact on 3M reputation

Who we are

Responding to natural
disasters
Employment
Workplace diversity
Food safety

Treatment of workers
Air quality
Scarcity of raw
materials
Improving access to
education

Reducing toxic
substances
Water shortages
Reducing wastefrom operations
Availabilityof sustainableproducts andservices

Engagement withcitizens on sustainablebehavior
Human health
Advocating laws
supporting
Sustainability

Importance to stakeholders
Indicates a higher priority on 2018 versus the 2016 assessment

57

Who we are#improvinglives

3M 2019 Sustainability ReportLo
fo okirw ng
ard

Global challenges

Stakeholder key focus areas

Membership andpartnership

Stakeholder key focus areas
Unemployment
and under-employment
Scarcity of
raw materials

Poor air
quality

Climate change

Stakeholders:Academic
Consultants

External engagements andcollaboration efforts on priority
focus areas help provide us withdiverse viewpoints, a better
understanding of the positions of
our stakeholders, and a mechanism
to learn from the successes andfailures of our peers, all of which
contribute to our commitment
to purpose-driven business.

Customers
Government, regulatory

Violations ofhuman rights

Group purchasingorganizations
Non-governmentalorganizations
Waste frommanufacturing,
operations

Other private sector

Accumulationof toxic
substances

Trade organization
3M retirees
3M employees

Shortagesof available
fresh water

Excessive energy,
declining energy

Poor water
quality

Science for
Circular

Science for
Circular

58

Science for
ClimateScience for
ClimateAs part of GlobeScan’s 2018
interview process, a seriesof questions were framed on
engagement tactics to better
communicate with relevant
stakeholders. From theseinterviews, we learned stakeholders
mention a variety of groups toprioritize, including customers/
consumers, local communities,
investors, government agencies,
and NGOs. In addition, they
preferred communication thatis simple, intuitive, and easy
to understand such as thisreport, blogs, and new releases.
This aligns with our current
engagement practices.

The world around us is changing
fast. Waste and resource scarcity
threaten our natural systems andevery species. Climate changeis accelerating and endangers
everyone’s well-being. People
around the world will need tocome together to create a morepositive future in which everyone
can thrive. More than ever, weneed science. The resilienceof our planet, our people, andour economy depends on it.
We believe we can help, and thisis our purpose. That is why we arecommitted to three priority areas— Science for Circular, Science
for Climate, and Science forCommunity — and it is why we are
reinventing the products, processes,
and systems that will improve
every life. We are transforming
our business and putting science
to work for the greater good.

Science forCommunity

Science forCommunity59Who we are2025 Sustainability Goals

2025
Sustainability
Goals
Important journeys startwith calculated steps.

Raw materials
Raw materials
Respect our planet’s resources
to assure we have abundance for
future generations.

Stakeholders increasingly expect
companies to do things that benefit
society in more direct ways andare not solely focused on benefits
to the company. That is why wemade such an active effort toinvolve stakeholders when wedeveloped our 2025 Sustainability
Goals. These goals go well beyond
advancing our environmental
stewardship efforts. They areframed around global challenges.
60

Reduce manufacturing
waste by an additional
10 percent, indexed to sales.

WaterPromote clean water for
every person, business, andWe have been setting global
environmental goals at 3M
since 1990. A strong part of ourcompany history, these goals
have helped dramatically reduce
our own environmental footprint
and established us as a leader
in environmental stewardship.

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

and reimagine waste as a nutrient

everyone, everywhere, so that

Ourcommitment#improvinglives

3M 2019 Sustainability Report

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

community has the water theyThis is apparent when one considers
how well our goals align with theUnited Nations 2030 agenda for
Sustainable Development released
in 2015. This agenda, including
17 sustainable development
goals (SDGs), is designed to build
upon the historic work of theMillennium Development Goals
and stimulate important action inthree dimensions of sustainable
development: economic,
social, and environmental.
We set our goals with theperspective that we have to
succeed as a company while also
supporting the communities where
we operate. It’s a two-pronged
approach that is both practicaland thoughtful — and filled with
the integrity 3M is known for.

Our view of Sustainability is
about finding those intersections
where our goals move us forward
toward growth while supportingthe company Vision to advance,enhance, and improve.

need to thrive.

Climate and energy
Transform the way theworld uses energy, because it
impacts the climate, and theclimate impacts everyone.

Sustainability at 3M also includes
collaborating to find better
solutions for customers. The way
we see it, global challenges must
be addressed together to assure
we can all live healthy, fulfilling
lives. That’s why we are committed
to partnering with customers to
identify and collaborate on solutions
to help them address their goals.

Health and safety
Improve the health and safety ofDrive supply chain Sustainability
through targeted raw material
traceability and supplierperformance assurance.

Climate andenergyImprove energy efficiency indexed
to net sales by 30 percent.
Increase renewable energy to
25 percent of total electricity use.
Ensure GHG emissions at least
50 percent below our 2002 baseline,
while growing our business.
Help our customers reduce
their GHGs by 250 million tonsof CO₂ equivalent emissions
through use of 3M products.

Health and safety

Water

Provide training to 5 million people
globally on worker and patient safety.

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

Education anddevelopment

people worldwide, so we can all
focus on what matters most to us.

 ducation andEdevelopment
Support empowerment andenrichment to provide people
everywhere the opportunity
to live life to its fullest.

Engage 100 percent of waterstressed/scarce communities
where 3M manufactures oncommunity-wide approaches
to water management.

Invest cash and products foreducation, community, andenvironmental programs.
100 percent participation in
employee development programs
to advance individual andorganizational capabilities.
Double the pipeline of diverse
talent in management to build
a diverse workforce.

61

3M 2019 Sustainability Report

2025 Sustainability Goals#improvinglivesLo
fo okirw ng
ard

Who we are

Our actions
In 2018, we entered the thirdyear of an ambitious 10-year goal
cycle. The 2025 Sustainability
Goals we are now pursuing reflecta heightened commitment togoing beyond compliance andthinking holistically about how ouroperations and products affectthe world and every life in it. We
see the opportunity, in the next
decade, to create systemic changethat addresses global Sustainability
challenges involving raw materials,
water, climate and energy, healthand safety, as well as educationand development. For additional
information on the developmentof our 2025 Sustainability
Goals, see global challenges.

Making progress
toward 3M’s
2025 Goals• Increased water use by 0.7%,
indexed; behind goal of 10% reduction2018 ProgressRawmaterials• Launched Sustainability Value
Commitment; advancing goalof developing more sustainable
materials and products• Reduced manufacturing waste
by 11.7%, indexed; exceeding
goal of 10% reduction• 30.4% (56 manufacturing facilities)
zero landfill; exceeding goal of
30% of manufacturing facilities• Revised and re-launched ourSupplier Responsibility Code;maintaining our commitment to drive
supply chain Sustainability throughtargeted raw material traceability
and supplier performance assurance

62

Water

• 100% (25 facilities) located inwater stress/scare areas engaged;
maintaining goal of engaging 100%

Climate andenergy• Improved energy efficiency
by 2.8%, indexed; toward
goal of 30% improvement• Increased renewable energy
footprint 26.8%, total electricity use;
exceeding goal of 25% increase• Scope 1 and 2 emissions 63.7%
below baseline; ahead of goalfor 50% below baseline1• Over 40 million metric tons
CO₂ equivalent customer
avoided emissions; toward goalof 250 million metric tons

Health and safety• Provided 98,900 training instancesthough eLearning platform; toward
goal of 5 million training instances²

Education anddevelopment• $66.3M investments in total global
giving; toward goal of continuing toinvest in global giving programs• 50+% participation in employee
development programs; toward
goal of 100% participation• Increased pipeline of diverse talent inmanagement by 5.7%; toward goal of
doubling the pipeline

We’ve made such significant
progress on our 2025 Sustainability
Goals, we’re raising the bar. Moving
forward through our Sustainability
leadership framework, we are
cutting across industries and silos
to collaborate with suppliers,
customers, and communities byworking together building a more
resilient world. We at 3M have theunique opportunity to apply our
passion and collaboration to help
the world prosper. The milestones
established with our new framework
will enhance and continue to growour existing 2025 Sustainability
Goals and commitments.
Our customers, and thecommunities in which we
operate, deserve it. Our people
are motivated by it. Our future
will be all the better for it.

1 2002 baseline year; all others
have a 2015 baseline.
2 Value represents 2018 relearning
training instances only.

63

Who we are

Communities#improvinglives

3M 2019 Sustainability Report

Communities

Creating a more positive world
through science, and inspiringothers to join us.
Ourcommitment
3M helps build sustainablecommunities through strategic
investments and the thoughtful
involvement of 3M businesses,
facilities, and employees
worldwide, who volunteer
and leverage their skills andexperience to make a difference.
The primary social investment armof 3M is 3Mgives, which maximizessocial impact by combining 3M
employee expertise with our
products, technologies, andphilanthropy. 3Mgives develops
and implements strategy, andpartners with leading community
organizations that have a proventrack record for delivering results.
Oversight is provided by the 3M
Foundation Board of Directors
and Corporate Contributions
Committee, comprising seniorlevel executives in the company.

64

To assure that our support
brings maximum benefit to
the communities being served,
3Mgives assesses the impact
of prior grants and employee
engagement initiatives to informfuture engagement, and provides
signature partners with financial
support to help evaluate outcomes.

2025 Goal:
Invest cash andproducts foreducation,community, andenvironmental
programs.
We continue to invest in increasing
access and opportunity for all
people worldwide to succeed inscience, technology, engineering,and mathematics (STEM) andbusiness fields, and to improving
the quality of every life throughinvestments in environment andcommunity programs. Cash, in-kind investments, and employee
engagement remain core toour 3Mgives strategy. Since
1953, we have invested $1.65
billion in cash and productcontributions in 3M communities.

Our actions
Empowering the next
generation
3M empowers the next generationof scientists and engineers
by supporting education
initiatives that advance equitableoutcomes in STEM and businessfor underrepresented andunderresourced students.

Community training resources.
As manufacturing evolves andcompanies like 3M invest in
facilities of the future, it is essentialthat our local technical schools
and high schools get access toappropriate technologies andtraining. Here are three programs
3Mgives is investing in to help keep
the workforce pipeline flowing:• The 3M Manufacturing andAcademic Partnership (MAP)
program provides manufacturing
equipment, teacher training, andstudent scholarships throughpartnerships with high schools andtechnical colleges in communities
where we operate. In 2018, we
supported 30 high schools,
10 community and technicalcolleges, and we provided nearly
50 scholarships. For additional
information on one effort, see here.
• Since 2013, 3Mgives has helped
to close the workforce gap across
many industries around the world
by supporting WorldSkills™
and SkillsUSA, two programs
that provide forward-thinking
educational programs, events, andcompetitions. More on skilled tradedevelopment can be found: here.

• 3M has been a sponsor of theSociety of Women Engineers (SWE)
for many years and upped our
support in 2018 when thousandsof female professionals, students,and educators from across the
U.S. convened in Minneapolis,
Minnesota, at the year’s largest
gathering for women in engineeringand technology — the SWE
Annual Conference. Close to 100
3M employees from all over thecountry attended, and many spokeon panels during the event. A 3M
grant of $100,000 went toward theconference, including professional
development programs for college
students and working engineers.
Learn more about this and other 2018
academic support initiatives: here.

opportunity to experience sciencein 3M labs and manufacturing
facilities and discover the ways
we apply that science to real life.
Learn more on supporting scienceand technology teachers: here.
STEM-equity support.
To support efforts in communities
where our facilities are located,
3M, in 2018, awarded grants to
14 organizations with effective
STEM-equity programs.
• Soar Detroit in Michigan, nominatedby 3M Detroit, for a program toprovide one-on-one classroom
reading tutors for first, second, andthird graders at two schools wherereading test scores were low

A science curriculum for teachers.
Teachers are the most importantschool-related factor in influencing
student achievement. That iswhy, for 34 years, 3M TWIST(Teachers Working in Science andTechnology) has been one of 3M’s
signature science encouragement
programs, helping teachers
gain practical knowledge ofscientific concepts to enhance
students’ classroom experience.
Since 1984, 3M has helped 40
teachers improve their classroom
instruction by providing an annual• Harrison County Board of Educationin Kentucky, nominated by 3M
Cynthiana, to provide high-quality,
hands-on STEM programming
to middle and elementary school
students through Project Leadthe Way. Plant engineers from
3M Cynthiana also visit schools
to support these programs65

Who we are

Communities• University of Wisconsin-Stout,
nominated by 3M Menomonie, tohold a STEPS for Girls camp, where
160 middle-school girls built arobot, participated in leadershipdevelopment, interacted with femaleindustry professionals, and toured
local manufacturing companies

Passion making a difference.

One giant STEP for student.
Each year for 47 years, the 3M
Science Training Encouragement
Program (STEP) has offered a ninemonth science encouragement
experience to underrepresented
and underresourced students
located near 3M’s headquartersin St. Paul, Minnesota. In 2018,37 junior and senior high school
students had the opportunity
to participate in on-site science
training, mentorship with 3M
scientists, and hands-on experiencein 3M labs in the summer. Learn
more on 3M STEP: here.

Inspiring employees
to make an impact
By investing in programs promoting
a circular economy, the fight against
climate change, and creating
a more positive world throughscience, 3M inspires employees
to make an impact on the world.
66

When asked why they love towork for 3M, many employees saythey enjoy making a differencein the world. To draw on thispassion, the company offers a
program called 3M Impact, where
employees travel to communities
around the world. Learn more on
3M’s Impact program: here.

3M 2019 Sustainability Reportall of our moments matter forcollective impact internationally.
Examples of these efforts:

Post-graduate learning
opportunity.

• 3M France participated in several
activities: helping transform an
old fort in a Paris suburb into an
urban farm and cultural site, sorting
clothing for migrants, painting
murals at children’s facilities,
and making dolls for children
as part of The United Nations
International Children’s Emergency
Fund (UNICEF) program

The 3M Optimized Operations
Experience (O2 Engage) is amanufacturing and supply chain
development program that provides
recent engineering, supply chain,and environmental, health andsafety graduates the opportunity to
jump-start their careers. 3Mgives
partnered with the O2 Engage
program in 2018 to embed a social
responsibility project into theprogram, enabling O2 employees
to utilize their skills to positively
impact the community. Learn
more on O2 Engage: here.

• 3M China established a 3M
STEM education base at primaryschools covering Beijing, Shanghai,
Guangzhou, Chengdu, and Suzhou.
Volunteers attended the eventsand contributed their volunteer
hours. The programs aim to
inspire students’ curiosity about
science and foster their creativity
through innovative educational
experiments and experiences. In
addition, 3M announced thatits R&D center in China will be
open to students who are fromthe 3M STEM education base

A world of volunteers.
Now in its fifth year, 3M
Global Volunteer Day brought
3M employees from aroundthe world together to makeStanding out among standouts.
For the past 32 years, the 3Mgives
Volunteer Award has celebrated
extraordinary 3M volunteers who
generously share their time andtalents to improve lives in the areasof education, community, or theenvironment. In 2018, 29 awardees
were honored globally, including:• Deborah Diaz, Trade Marketing
and Corporate Marketing Manager
in Puerto Rico, who was honored
for her work coordinating andengaging fellow 3M employees
in relief and recovery efforts
following the destruction of
hurricanes Irma and María. Her
efforts included securing essential
supplies, organizing volunteer
outreach, and fostering allianceswith other local organizations• Mary Ann Demition, Advanced
Application Engineer in thePhilippines, who was honored forsharing the wonder of science
with schoolchildren as a 3M
Visiting Wizard. She has alsoorganized school supply donations
for Tibag Elementary School,an underresourced school in aremote area of her country• Kathy Barber-Clark, AccountManager, Consulting Operations in#improvinglives

Atlanta, Georgia, who was honored
for her work with the Warren
Boys & Girls Club. In addition tocoordinating 3Mgives and 3M
Sales Connection events for theBoys & Girls Club, Kathy started
the STEM Wizard summer learning
program and assists with homeworkand mentoring programs to help
prepare youth for the future• Mauricio Baeza, Finance Manager
in Chile, who was honored for his
work with United Way Chile —serving as director, treasurer, andliaison between 3M and the United
Way to support the education ofchildren with limited resources. In
addition, Mauricio participatesin a youth mentorship program

Big hearts, matched.
As part of the 3M Volunteer Matchprogram, 3M donates money toeligible nonprofit organizations forwhich a 3M employee or retiree
volunteers 25 hours or more percalendar year. Since 2000, thecompany has donated $7.91 million
in 3M Volunteer Match dollars
to support 5,500 schools or nonprofit organizations throughout the
U.S. In 2018, the match doubled
from $250 to $500. The number ofparticipants increased 16 percent.

• In related news, 3Mgives launcheda one-stop web shop for community
engagement, My 3Mgives. The new
portal enables 3M employees to findvolunteer opportunities based on ZIP
code or preferences, and to request
matches, including Volunteer Match

Giving that starts at home.
In 2018, 3M launched a new
Community Giving Campaign
to provide more options for
employees to support organizations
they are passionate about, with
3M matching dollars now following
employee gifts. The program
produced an expanded giving
footprint, tripling the number oforganizations from last year’s
campaign. With a maximum of$500 in corporate support per
employee, 3M employees stepped
up to invest more than $3 million
in current donations and 2019
pledges. When including the 3Mmatch, this equals more than $4.5
million in donations to help solve
our communities greatest needs.

67Who we are

Communities

Enhancingcommunity vibrancy

2018 giving by focus area
Cash

In-kind

Total

Volunteer hours

Community$17,500,000$11,700,000$29,200,000

243,000

Education$14,800,000$19,000,000$33,800,000

78,500

Environment$3,320,000$5,110$3,330,000

11,300Total$35,600,000$30,700,000$66,300,000

333,000

Values presented in this table represent the most current values, in $USD, but are still subject to change. Total may vary due to rounding.
Volunteer hours include employees and retirees.

2018 global giving by region
CashIn-kind

Total

Volunteer hours

Asia Pacific$1,610,000$652,000$2,260,000

6,720

Europe, Middle East,
Africa$457,000$96,900$554,000

11,000$2,200,000$91,400$2,290,000

8,950$697,000$720,000$1,420,000

4,200

United States$28,200,000$25,000,000$53,200,000

302,000

OUS, region
not defined$2,470,000$4,060,000$6,530,000–$35,600,000$30,700,000$66,300,000

333,000

Latin America
CanadaTotal

Values presented in this table represent the most current values, in $USD, but are still subject to change. Totals may vary due to rounding.
Volunteer hours include employees and retirees.

68#improvinglives

3M 2019 Sustainability Report

3M enhances community vibrancy
by assuring access to basic needs,
preparing youth for lifelong success,increasing access to diverse arts
opportunities, and contributing to
global humanitarian relief efforts.

and flooding in Trinidad andTobago, California wildfires, andhurricanes Florence and Michaelin the southeastern U.S. To
support communities impacted,
3M provided cash and productdonations valued at more than $1.94
million to humanitarian aid partners
including American Red Cross,
Direct Relief and MAP International.

GO-power for NGOs.
Big challenges met.
3M worked with the National
Association for the Exchange
of Industrial Resources (NAEIR)
to provide needed materials
and supplies to a multitude ofnonprofit organizations, from
hospitals to schools to shelters.
In addition to streamlining 3M’s
excess product donations process,
NAEIR is a 3Mgives strategic
partner, administering the 3M
Supplies for Community Partners
and the 3M Supplies for Schools
product donation programs in
3M communities across the U.S.
A natural response tonatural disasters.
In 2018, devastating disasters
occurred around the world,
including flooding in Thailand,an earthquake and tsunami inIndonesia, Typhoon Mangkhut
in the Philippines, torrential rains

Product donations can be especiallycritical in times of disaster byenabling relief organizations to
respond to immediate needs. In
the case of Hurricane Florence,for example, 3M™ Surgical
Masks, ScotchBlue™ Painter’sTape, Avagard™ Hand Hygiene
Solutions, ACE™ Bandages, and
FUTURO™ first aid products wereused for emergency health careservices for displaced residents.
• In addition to responding whennatural disasters strike, 3M works
with our humanitarian aid partners
to pre-stock warehouses with
supplies commonly used during
relief operations. For instance, theAmerican Red Cross stocks their
Disaster Field Supply Centers with
3M dust masks and respirators, andincludes ScotchBlue™ Painter’sTape in shelter support trailers to

be used for hanging signage andsecuring wires in temporary shelters• In 2018, 3M Mexico earned the“Social Impact Company of theYear” award for its response to themajor earthquake that hit Mexico
City in 2017. The 3Mgives grant
helped build eight houses in Mexico
City’s Xochimilco neighborhood,
one primary school in the stateof Estado, toy libraries in Mexico
City, and helped rehabilitate theoffice of Fondo Unido. 3M Mexico’s
3Mgives also organized multiple
volunteer events throughout the year
to support rebuilding efforts in thearea impacted by the earthquake

Empowering local communities.
3M U.S. locations have their own
3Mgives budgets and the discretion
to determine local community
needs and giving priorities.
In addition, 3M Community
Vibrancy Grants promoteeconomic development, youth
development, or access to diverse
arts programming for underserved
populations. For example: In
Michigan, 3M Detroit provided
a grant supporting the Matrix
Human Service’s Osborn Youth
Employment Initiative. According
to a recent American Community
Survey, Detroit’s poverty rate of69

3M 2019 Sustainability Report

Communities#improvinglivesLo
fo okirw ng
ard

Who we are

Global community investments
34.5 percent remains one of thehighest for major cities in thenation. This level of concentrated
poverty has had multi-generational
impacts on families, making it justas challenging for impoverished
youth to succeed as it is fortheir parents. The Osborn Youth
Employment Initiative advances
equity by intervening on behalfof this neighborhood’s young
people, providing them with newopportunities to explore careers,
prepare for college, and findpositive employment experiences.

Key

Global community investments

Volunteer programs
Foundation boards
STEM-type programs

United States
CanadaBelgiumUK

MexicoNorwayDenmark

Kazakhstan
RussiaFranceChina

Dominican
Republic

El Salvador

Puerto Rico

Costa Rica

Japan

Italy

Jamaica

Honduras

PanamaPortugal
Spain

Trinidad &TobagoEcuador

Peru

ThailandNigeria

Philippines
Malaysia

Pakistan

EygptIsraelSouth Africa

Chile

Indonesia
Sri
Lanka

Saudi
ArabiaAustralia
India
Singapore

Argentina

70

STEM programsin 22 countries

STEM programsin 22 countries

Seven countries hosted
3M impact global projects

Seven countries hosted
3M impact global projects• Subsidiaries have local community
engagement programs
focused on social concerns
specific to their locations

Our international approach is
evolving to expand our reach andbuild local ownership. Our goal
is to increase international cash
giving (comprising 3Mgives cash
investments and subsidiary cash
investments) to 25 percent of
total 3M cash giving by 2020.

New Zealand

Kenya

Volunteer programsin 29 countries

Vietnam

3M
Gulf

Uruguay

Volunteer programsin 29 countries

Hong Kong

GreeceTurkeyBrazilSouth Korea

TaiwanMoroccoVenezuela• Support for international
programs originating in the U.S. isconducted through intermediaryorganizations based in the
U.S. that have global reachUkraineIreland

GuatemalaColombia

SwedenGermany

Netherlands

3M impact projects

Lithuania
LatviaSwitzerland
Estonia
PolandCzech
Republic
Austria
Hungary
Romania

While our international and
U.S. giving efforts share acommon philosophy, our support
for international programs
stands out in two ways:

Foundations infour countries

Throughout 2019, 3M will add
depth and direction to the Strategic
Sustainability Framework, including
Science for Community.

Foundations infour countries

71

Who we are

Employee diversity and inclusion

Employeediversity andinclusion

A culture that thrives because of,
not in spite of, our differences.
Our
commitment
How do we become the mostinclusive enterprise we can be? It’s
about attracting top talent aroundthe world. That understanding
leads to a much more diverse 3M, astronger 3M, a more creative 3M,
higher-performing 3M. Diversity
and inclusion are the foundationof our Value Model. Our Value
Model comprises the actions wetake that make us unique among
companies and differentiate us in
our marketplace.
The way we look at it, a diverse,
global workforce — people withdifferent experience, ethnicity,age, gender, sexual orientation,
personalities, styles, and ways ofthinking — helps us relate moreclosely to the needs of all 3M

72

customers, suppliers, and channel
partners around the world.
Just as important, we know that
inclusion is the key to unlocking
the power of diversity. An inclusive
culture is one that supports
and appreciates differences
and provides fair and equal
opportunities for everyone — aculture where people realize they
are respected for their whole
and unique selves, and thatthey belong. Inclusion leads toengagement, which in turn fosters
the collaboration, creativity, andinnovation that drive long-term
growth, for 3M as well as forour people and our teams.
Above all, creating a culture that
supports diversity and inclusion
is the right thing to do. Diversity
and inclusion are about creating
intellectual and emotional oxygenfor all people to flourish and#improvinglives

3M 2019 Sustainability Reportfeel comfortable to collaborate,agree, disagree, and respectfully
exchange, learn, and create.
Our Code of Conduct is what
it means to be a 3M employee.
And that code includes the 3M
Respectful Workforce Principle.
Be Respectful: We strive to have awork environment that reflects andvalues the best in all of us, where
we treat each other respectfully
and professionally, and whereindividual differences are valued.
3M’s Respectful Workplace
Principle states that “everyone isentitled to respectful treatmentin the 3M workplace. Being
respectful means being treatedhonestly and professionally, witheach person’s unique talents,
background, and perspectives
valued. A respectful workplace is
free from unlawful discriminationand harassment, but it involves
more than compliance with the law.
It is a work environment that is freeof inappropriate or unprofessional
behavior and consistent with
3M’s ethics and values — a place
where all employees can dotheir best, and are free to report
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 discriminationor harassment against applicants,
employees, vendors, contractors,
or customers on the basis of race,color, creed, religion, sex, national
origin, age, disability, veteran’s
status, pregnancy, genetic
information, sexual orientation,
marital status, citizenship status,
status with regards to public
assistance, gender identity/
expression, or any other reason
prohibited by law. Our affirmative
action policies and programs
are designed to assure equal
opportunities for qualified
minorities, women, covered
veterans, and individuals withdisabilities, and also to provide
reasonable accommodation toindividuals with disabilities.

2025 Goal: Double
the pipeline of diverse
talent in management
to build a diverse
workforce.
Increasing diversity in every regionin which we operate is a core part ofour Sustainability strategy. Doubling
our diverse talent in management
positions will ultimately help build
a diverse pipeline for executive
leadership as well. That said, we
recognize that definitions ofdiversity vary between countries
and cultures. The 3M definitionof diversity includes gender, race/
ethnicity, nationality, people withdisabilities, U.S. military veterans,
and people who identify aslesbian, gay, bisexual, transgender,
questioning, and intersex (LGBTQI).
To measure progress against our
2025 goal, we use the 3M Diversity
Index, which represents the total
number of diverse future leaders
within the company globally.
In the U.S. and in many othercountries, we provide ourpeople with the opportunity
to opt in to the index researchand confidentially provide
information such as disability
status, veteran status, sexual
orientation, and race/ethnicity.

To date, we have made 5.7 percent
progress toward this goal, movingfrom 32.6 percent to 38.3 percent.

Our actions
Every day, we work to assure thatthe 3M workforce is representativeof the people with whom we dobusiness. This entails strengthening
3M’s reputation as a great placefor diverse people to work:• Seeking and attracting diverse andqualified candidates globally• Building our global pipelineof diverse candidates

Beyond our day-to-day efforts
to support diversity in 2018, we
also actively promoted initiatives
to engage our people, attract thebest talent, and make everyone
feel safe and included.

Catalyst CEO
Champions for
ChangeAs part of 3M’s commitment tobuilding a diverse and inclusive
work culture, 3M CEO Mike
Roman signed on to Catalyst’s
CEO Champions for Change73Who we are

Employee diversity and inclusion

initiative, joining more than 50
CEOs and industry leaders who
also have made personal pledges
to accelerate gender equality andinclusion in their organizations.

been done to date and, at the sametime, noticed that there is still more
to be accomplished. To further ourjourney in 2018, 3M established
U.S. and global inclusion teams
to help fortify our culture ofinclusion and drive improvementin their individual organizations’Inclusion Index results.

“3M is honored to be part ofCatalyst CEO Champions for
Change,” said Roman. “Diversity
and inclusion is one of our corebusiness strategies because
we know that championing adiverse and inclusive global
team helps us better serve ourcustomers and build an evenstronger 3M. Advancing inclusive
leadership advances us all.”Different minds
inspireThe central thread of 3M
diversity and inclusion efforts
is our “Different minds inspire”
campaign. Initiated in 2017, thiscampaign continually confirms our
inclusive culture, which supports
and appreciates differences
and provides fair and equal
opportunities for everyone. In
its inaugural year, the 3M Global
Inclusion Index (a baseline measureof how included employees feel inthe workplace) was created basedon responses to questions in the 3M
Standard Opinion Survey. We seethat as an endorsement of what’s
74

As part of the “Different minds
inspire” campaign, we focusedon communicating around threeactions each of us can taketo support inclusion: Reflect,
Connect, and Wonder.
Reflect: Identify your own
unique strengths.
Focusing on and understanding
one’s own talents, skills, andperspectives makes us who we areand enables us to determine how
we can make a difference — andhelps us recognize the talents
others have to offer, too. For
instance, on March 8, partneringwith the Women’s Leadership
Forum (WLF) on International
Women’s Day, participants
were invited to discover theirunique strengths in a two-partevent held at the 3M Center in
St. Paul, Minnesota. The day
included a panel of 3M leaders
revealing how appreciating the#improvinglives

3M 2019 Sustainability Reportstrengths of others helped themset their teams up for success.
Connect: Understand andappreciate the uniqueperspectives of others.
Seeking insights and perspectives
from others allows one to learn
from their experiences andincreases appreciation for otherviewpoints. One such event, WorldDay for Cultural Diversity heldon May 21, honored diversityof our people and customers,
recognized the importance ofintercultural collaboration insolving today’s challenges, andencouraged 3M employees todeepen their understanding andappreciation of other cultures.
Wonder: Imagine what we
can accomplish together.
Understanding and valuing the
dreams, needs, and desires ofothers fuels our ambition to solvepressing challenges together. For
instance, on Wonder Day,
September 21, surfboard artist
Drew Brophy visited 3M Center in
St. Paul to paint a series of fivesurfboards with artistic
representations of how each of thefive 3M business groups improves
lives, using many 3M products inthe process. Meanwhile, at the 3M
Global Service Center in thePhilippines, employees participatedin a problem-solving activity using
tangram puzzles.

“Navigating Your Professional
Career: A Conversation with
Minnesota Vikings Executives.”
The event opened with a keynote
address by 3M leader Joaquin
Delgado, Executive Vice Presidentof the Consumer Business Groupand Executive Sponsor of the
WLF. This was followed by apresentation by two leaders of theMinnesota Vikings NFL footballmanagement team, who spoke
about their career experiences in
professional sports and beyond.

Global Inclusion Day
To maintain the momentum of the“Different minds inspire” campaign
through 2018, 3M took it steps
further:

Learning thescore with sports
management leaders
Curiosity and collaboration
are a powerful combination inbusiness. To delve into what it
takes to collaborate effectively,
the Diversity and Inclusion team,along with the WLF and the Men
as Advocates group, conducteda special event in June of 2018:

We turned science inward to
explore how inclusion affects
the brain and body, and how
these results, in turn, can shape
our culture as part of our Global
Inclusion Day, a day devoted tolooking at the science of inclusion— the inherent connection
between inclusive behaviors,
biology, and well-being.

Connecting andinspiring Minnesota’s
business leaders
On August 10, 3M welcomed
Governor Mark Dayton anddiversity and inclusion leadersfrom public and private Minnesota

companies, including Best Buy,
General Mills, Medtronic, Target,and US Bank to share best practices
for bolstering diversity andinclusion in the workplace. This
“Different minds inspire” event gave
employers a chance to share theirsuccesses, ideas, and challenges
as Minnesota seeks to build aworkforce that better reflects andincludes the rich diversity of its
people. The state of Minnesota
and 3M hope these partnerships
extend into the future, cultivatinga network across Minnesota thatwill allow leaders to continuallylearn from each other’s successes.

Employee Resource
Networks
3M Employee Resource Networks(ERNs) are nine organizations
designed to nurture leadership skills
and collaboration across cultures,
lifestyles, and genders throughevents and activities as they align totheir mission. Open to all employees,these organizations help 3M recruit,engage, and retain diverse talent andwork with our businesses to provide
relevant customer insights thatcan expand our marketplace reach.
Learn more by visiting 3M’s ERNs.

75

Who we are

Employee diversity and inclusion

3M 2019 Sustainability Report#improvinglives

Current progress and opportunity – racial, ethnic diversity
Current progress and opportunity – racial, ethnic diversity
Racial, ethnic diversity(U.S.)

19%

2018

ERN Community
Champions and grants
Our nine ERNs, in partnershipwith 3Mgives, created the ERN
Community Champions programin 2018. This program, launchedon 3M Community Champions
Service Day (October 4), connected
the ERNs to the faces, voices,and dreams of the community
impacted by two societal
inequities: education disparityand homelessness. ERN members
traveled into the community andengaged experts who helped
them better understand current
and desired situation dynamics
within these two inequities.

Domestic partner
benefits
At 3M, diversity and inclusion isthe cornerstone of our organizationand essential to innovation. This
is why 3M now offers benefits for
eligible opposite-sex and same-sex
domestic partners of employees,
and their eligible dependents. As
part of its work, the Diversity andInclusion team invited employees
to learn more about domestic
partner benefits, eligibility, available
coverages, costs, tax considerations,and dependent certification, andwere able to enroll for 2019 benefits.
76

New and continuing
support for those
who serve
3M has expanded paid leave
benefits for military training,doubling coverage from two weeks
to four weeks each calendar year.
This policy change will help 3M
employees in the National Guard or
Reserve units meet their increasing
training requirements in supportof our nation. Eligible employees
on leave for annual encampment
or training may be entitled todifferential pay for the difference
between their 3M pay and theirmilitary pay. For additional details
on this policy enhancement, click
here to access the Paid Leave
Policy for Military Training.
3M strives to be the premiercompany for the militarycommunity and this policy change
reflects our commitment toveterans and the mission of theMilitary Support Network (MSN).
The MSN provides active support
and outreach, reoccurring
professional development,
and focused veteran hiring
services to current 3M military
veterans, their families, and othermilitary members seeking tojoin 3M. If you are interested in

Minority hires(U.S.)

34%

81%

66%

being a part of this ERN, email
militarysupport@mmm.com.

National Industries for
the Blind (NIB)
For more than 30 years, 3M has
partnered with NIB, the nation’slargest resource for jobs andtraining for people who are blind. In
2018, 3M was awarded the highest
honor from the NIB as the first
corporation to receive the Irwin
Award. Check out the full story here.

Best Places to Workfor Disability Inclusion
Representing people withdisabilities is an importantdimension of 3M’s Sustainability
goal to double the pipeline ofdiverse talent in management by
2025. To that end, we earned a top
score of 100 percent on the 2018
Disability Equality Index®, making us
one of the “Best Places to Work for
Disability Inclusion.” Participatingin this index helps us identify
ways we can further enhance
our policies and practices arounddisability inclusion. It's part of ourcommitment to be an inclusive
culture and workplace where
people of all abilities can thrive.

18%

2015

29%

82%

71%
1%

% change

Diverse5%
Non-diverse

Current
progress and opportunity – percentage of global
Current progress and opportunity – percentage of global
femaleemployees
female employees
GlobalManagement

Executive
Management

Board ofDirectors

2018

35%

30%

28%

31%

2015

34%

27%

24%

18%

% change

2%
Male

3%

4%

13%

Female77

Employee diversity and inclusion

3M 2019 Sustainability Report

Asia Society Awards

Current progress and opportunity – percentage
of female hires, 2018

#improvinglivesLo
fo okirw ng
ard

Who we are

In June of 2018, 3M was a multiple
winner in the Best Asian American
Employer Awards, presented at the
Asia Society Corporate Insights
Summit, in New York City. Theseawards recognize Fortune 500 andother large companies that havedemonstrated an exceptional ability
to successfully attract, develop andretain Asian Pacific American (APA)
leaders. 3M won two Best Employer
Awards, for Best Asian Pacific
American Employee Resource
Groups and Best Employer for
Promoting Asian Pacific Americans
into Senior Leadership Positions.
In addition, the company received
a Best Practices Award for
promoting LGBT Asian employees.

Current progress and opportunity – percentage of female hires, 2018

Canada

37%
2%

37%
3%

78

38%
2%

Latin
America56%
8%Progress since 2015

On the same day, it wasannounced that each country,
business, and staff group at 3M
will have a designated Inclusion
Champion who will lead actionplans to advance inclusion
initiatives within their group.

Europe,Middle East,
AfricaUnitedStatesBest Places to Work
for LGBTQ Equality
For the seventh year in a row, 3M
was named one of the “Best Places
to Work for LGBTQ Equality” in
2018, scoring 100 percent on
the Corporate Equality Index(CEI). The CEI is administered by
the Human Rights Campaign andbenchmarks corporate policies,
including non-discrimination
workplace protections, domestic
partner benefits, and transgenderinclusive health care.

Announced on Global Inclusion Day
2018, the CEO Inclusion Council is
a diverse group of 3M leaders fromacross the company who will focus
on action planning for inclusionand diversity initiatives. With CEO
Mike Roman as the champion, theCEO Inclusion Council will meetquarterly beginning in 2019.

Male

Asia Pacific

42%
13%

With the direction provided bythese people, we will continue
our journey of steady progress inincreasing the pipeline of diverse
talent in management in 2019. In
addition, through the “Different
minds inspire” campaign, we will
engage employees in activities andbehaviors that strengthen inclusionand create space for respecting
diverse perspectives. We’ll
continue to focus on integrated
collaboration by combining
diverse capabilities and people
on teams to share knowledge anddiscover breakthrough outcomes.

Female79

Who we are

Recognition

3M 2019 Sustainability Report#improvinglives

Recognition
environmental impact, gives backto the communities they operatein, commits to ethical and diverse
leadership, and creates abundantjob opportunities.

• 3M Bolivia• 3M Brazil• 3M Costa Rica
• 3M Canada

Here at 3M we strive to improve
every life, act with uncompromising
integrity, and ask question after
question to develop innovative
solutions with a purpose. We
value the recognition we receive,as it shows we are a company
driven by employees who are truly
making a difference in the world.

have also historically outperformed
other companies from a financial
perspective, supporting the notionthat sound ethical practices areappreciated in the competitivemarketplace. This year’s honorees
spanned 23 countries and 57
industries. It was the sixth
consecutive year 3M made the list.

3M Brazil: Pró Ética
Certification Award

The World’s Most EthicalCompanies® program, managed by
the Ethisphere® Institute, honors
companies that excel in “promoting
ethical business standards andpractices internally, enabling
managers and employees to makegood choices, and shaping futureindustry standards by introducing
tomorrow’s best practices today.”
According to the institute, honorees
80

For the fifth year, 3M Brazil
was recognized by the Brazilian
Government with the Pró Ética
Certification Award. The award,
the first of its kind in Latin America,
was created to promote ethics
and encourage companies totake voluntary steps to prevent
corruption, creating a more ethical,
transparent, and honest businessenvironment. 3M Brazil wasrecognized for top management’s
commitment to ethics, theirpolicies and procedures, and theirrisk monitoring and analysis.

• 3M Greece (3M Hellas)• 3M Panama Pacifico

Glassdoor’s “Best
Places to Work”
Forbes and JUST
Capital America’s
Most Just Companies

As the No. 1 Minnesota-based
global company, 3M ranks 60
out of 100, in the large, U.S.based companies division, with an
overall rating of 4.3 out of five.

Forbes and JUST Capital came out
with their list of America’s Most Just
Companies in 2019, and 3M moved
up 26 spots from last year, to landat number 26 overall and secondin the Industrial Goods sector.

What are other employees andcandidates saying about working
and interviewing at 3M? Checkout 3M’s Glassdoor page.

To come up with the list, Forbes
and JUST Capital surveyed 81,000
Americans on what they most want
to see from the nation’s biggest
businesses, then ranked companies
with these seven priorities in mind:
whether the company pays workers
fairly, treats customers well andprotects their privacy, produces
quality products, minimizes their

In 2018, Great Places to Work®
ranked 3M 21st among the World's
Best Workplaces and 20th Best
Workplaces in Manufacturing& Production. In addition, thefollowing countries and areas
were ranked and awarded as abest place to work in 2018:

Great Places to Work®

• 3M Poland• 3M Central American and
Caribbean Region

Best Places to Work
for LGBT Equality
Human Rights Campaign
Foundation’s 2018 Corporate
Equality Index is the national
benchmarking tool on corporate
policies and practices pertinent
to lesbian, gay, bisexual, andtransgender (LGBT) employees.
For the seventh straight year,
3M earned a perfect score of
100 percent and, along with it,
the distinction of being named
among the “Best Places toWork for LGBT Equality.”

Best DEI Places
to WorkIn the fourth 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.”

TIME
Best Inventions 2018
3M was recognized by in TIME
Magazine's list of Best Inventions of2018 in the Sustainability & Social
Good category for the 3M™ Smogreducing Granules.

Irwin Award
3M is the first corporation toreceive the National Industries
for the Blind (NIB) top national
award. The award honors 3M’s
longstanding commitment tocreating employment opportunities
for people who are blind. 3M is thesecond organization, and the first
corporation, to receive the Irwin
Award. The award is named for Dr.
Robert B. Irwin, Executive Directorof the American Foundation
for the Blind in the 1930s and amember of the team who worked
toward the formation of NIB.

81

Who we are

Recognition

3M 2019 Sustainability Report

World BusinessCouncil for
Sustainable
Development,
Reporting Matters

Sustainability Award
Industry mover 2019
For the 19th consecutive year, 3M
was selected as a member of the
Dow Jones Sustainability Index, aglobal stock index that recognizes
and tracks the performance ofleading sustainability-driven
companies worldwide. Withour 2018 assessment, 3M wasrecognized as a SAM industry
mover for achieving the largest
proportional improvement in
its Sustainability performancecompared to previous year.

82

EcoVadis awarded 3M a
Gold Recognition Level forachievements in the top one
percent of suppliers assessed incorporate social responsibility(CSR) in global supply chains.

Euronext and Vigeo Eiris included
3M, for 2018, in the Euronext World
120 and Euronext U.S. 50 based
upon environmental, social, andgovernance (ESG) performance.
Index components are reviewed
and updated twice a year, in Juneand in December. Companies
included in this index have achieved
the highest scores, as determinedby nearly 330 indicators, assessedby the agency.

FTSE Russell confirmed that 3M, in2018, had been independently
assessed according to the
FTSE4Good criteria, and hadsatisfied the requirements tobecome a constituent of the
FTSE4Good Index Series. Createdby the global index provider FTSE
Russell, the FTSE4Good IndexSeries is designed to measure theperformance of companies
demonstrating strong ESG
practices. The FTSE4Good indices
are used by a wide variety of market
participants to create and assess
responsible investment funds andother products.

MSCI ESG Ratings

In 2018, Reporting Matters,
published by the World BusinessCouncil for Sustainable
Development (WBCSD), recognized
3M for its good practice ofproviding evidence of activities
through our annual Sustainability
Report: “3M provides consistentevidence to demonstrate how
it has addressed material issues
throughout the reporting period.
It uses strategic, outcome-driven
case studies with historical context
to help drive the narrative. Casestudies tie to their #improvinglives
messaging on purpose, provided
at the beginning of the report,
which enhances story andmessaging and brings a sense ofcohesion to the wide range ofissues covered in the report.”#improvinglives

ISS Environmental
and Social Quality
3M earned best-in-class in risk
management around environmental
and social areas of concerns
by Institutional Shareholder
Services (ISS) with a score of “1”— or a top-performing score.

50 Best Places toWork for New Dads
Fatherly.com named 3M on its
list of 50 Best Places to Work for
New Dads, coming in at 45.

DIVERSEability
magazine
3M was recognized in the Fall/
Winter 2018 issue of DIVERSEability
magazine as being “Best of the BestTop Disability-Friendly Companies.”

MSCI's ESG ratings provide
institutional investors with arobust ESG integration solution.
In 2018, MSCI awarded 3M the
AAA rating, the highest rating.

83

Introduction

w H
e ow
w
or
k

How we work84

3M 2019 Sustainability Report#improvinglives

Introduction

86

Corporate governance

88

Enterprise risk

96

Corporate Code of
Conduct100

Human rights

110

Compensation

120

Employee programs

124

Health and safety

136

Environmental
management142

Raw materials

148

Water

154

Climate and energy

160

Suppliers

176

85

How we work

Introduction

Sustainablethinking isembeddedfirmly at thecore of 3M.

3M 2019 Sustainability Report#improvinglives

Just as Sustainability is embedded
throughout our Value Model,
sustainable thinking 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 have dedicatedSustainability leaders who develop
a relevant and well-informed
strategy specific to their market
demands and business goals.
Annually, like many companies,
we go through a strategicplanning process during which
our divisions and regions develop
their business strategies for the
next few years. However, unlike
others, we formally require thateach plan address Sustainability
factors relevant to their market
needs and business opportunities.

R&D at 3M is a little different:
We separate the R and the D.

them the freedom to follow their
instincts. At the same time, ourTech Forum is a key enabler ofcollaboration. This self-directed,
self-organized group unites
10,000-plus scientists andengineers who work together tosolve problems across oceans
and continents, regardless ofwhich business they’re from.
For the "D", 3M development teams
within each of our business groups
draw upon our core technologies
to create products for targetedmarkets and geographies.
Moving forward, we will continue
to expand beyond our own
operations and focus more on
3M Sustainability goals and theneeds of our customers andcommunities. While we recognize
the importance of what we doin our own businesses, and willcontinue to innovate there, we
see that far greater impact canbe realized when we partner tounderstand and overcome thechallenges we face together.

First, the "R". Scientists in ourcentral laboratory are free tofocus on pure research, in searchof unscripted, unexpected
opportunities for breakthroughs.
Our unique “15% Culture” gives
86

87How we work

Corporate governance#improvinglives

3M 2019 Sustainability Report

Corporate
governance he Board’s current leadershipTstructure is characterized by:• A combined Chairman of
the Board and CEO

3M believes that good corporate
governance practices serve thelong-term interests of stockholders,strengthen the Board andmanagement, and further enhance
the public trust 3M has earned from
more than a century of operatingwith uncompromising integrity
and doing business the right way.

Ourcommitment
Our corporate governanceprinciples govern how we dobusiness daily, enabling us tooutperform and lead the way tosustainable growth. They provide
a framework that defines theroles, rights, and responsibilities
of different groups within theorganization, the Board’s rolein risk oversight, public policy
engagement, and 3M’s commitment
to the environment and society.
3M’s Board of Directors oversees
the CEO and senior management
and assures that appropriate
procedures and controls are in place
covering managements’ activities inoperating the company on ethicalgrounds on a day-to-day basis.
3M’s Board of Directors has
adopted Corporate Governance
Guidelines which provide aframework for the effective

88

governance of the company.
The guidelines address matterssuch as the respective roles
and responsibilities of theBoard including leadership
structure, responsibilities of the
independent Lead Director, director
independence, membership criteria,
committees, and management
evaluation. The Board’s Nominatingand Governance Committee is
responsible for overseeing andreviewing the guidelines, at least
annually, and recommending
proposed changes to the Board
for approval. The Corporate
Governance Guidelines, Certificate
of Incorporation and Bylaws,
charters of the Board committees,
Director Independence Guidelines,
and Board of Directors Code of
Conduct provide the framework
for the governance of the company
and are available on our website
at www.3M.com, under Investor
Relations — Governance.

• A strong, independent, and highly
experienced Lead Director with welldefined responsibilities that support
the Board’s oversight responsibilities• A robust committee structure
consisting entirely of independent
directors with oversight ofvarious types of risks• An engaged and independent Board

The Board of Directors believes
that this leadership structure
provides independent Board
leadership and engagement while
deriving the benefits of having
our CEO also serve as Chairmanof the Board. As the individualwith primary responsibility for
managing 3M’s day-to-day
operations and with in-depth
knowledge and understandingof the company, CEO is best
positioned to chair regular Board
meetings as the directors discuss
key business and strategic issues.
Coupled with an independent Lead
Director, this combined structure
provides independent oversight
while avoiding unnecessary

confusion regarding the Board’s
oversight responsibilities andthe day-to-day managementof business operations.

innovation, commercial
transformation, manufacturing
and supply chain transformation,and people and culture.

The Board plans the succession
to the position of Chairman/CEO
and other senior management
positions. To assist the Board, theChairman/CEO and senior vicepresident of human resources
annually assess senior managers
and their succession potential forthe position of Chairman/CEO
and other senior management
positions. As a result of a thoroughand thoughtful succession planning
process, on March 5, 2018, theBoard appointed Michael F.
Roman CEO, effective July 1,
2018, succeeding Inge G. Thulin.

Our long-term strategy is outlinedin the 3M Value Model. The 3M
Value Model is what differentiates
our company in the marketplace.
It’s how we create extraordinary
value for customers, and premium
returns for shareholders. The model
is built around four elements: our
Vision, our strengths, our priorities,
and our Values. Additional
details can be found earlier in thisreport under 3M Value Model.

Board’s role in thecompany’s long-term
strategy
Each year management presents to
the Board, and the Board discusses
and approves, detailed long-term
strategic plans for the company. In
addition to the overall strategic planfor 3M and the business groups,
the discussions also focused on
breakout sessions with the directors
on strategic corporate-wide
themes of portfolio management,

Lobbying and Political
Activities Principle
As a concerned member ofour communities, 3M actively
participates in public policy andlegislative advocacy, or “lobbying.”
As appropriate, 3M also participatesin political activities to elect andwork with elected representatives
and government officials. 3M’s
Government Affairs organization
coordinates and oversees 3M’slobbying and political activities.
3M Political Activities Board,which is made up of senior 3Mexecutives, oversees 3M’s politicalcontributions and the activities of89How we work

Corporate governance

3M’s Political Action Committee(3M PAC). 3M PAC is a nonpartisan
fund comprised of voluntary
employee and stockholder
contributions that is used to makecontributions to U.S. federal,state, and local candidates aspermitted by law. These activities
must always comply both withapplicable laws and 3M’s Lobbying
and Political Activities Principle.

individuals who have distinguishedrecords of leadership and successin their arena of activity and who
will make substantial contributions
to Board operations and effectively
represent the interests of all
stockholders. The committee’s
and the Board’s assessment ofBoard candidates includes, but is
not limited to, consideration of:

Our actions
Board membershipcriteria
3M’s Corporate Governance
Guidelines contain Board
Membership Criteria which include
a list of key skills and characteristics
deemed critical to serve 3M’slong-term business strategy andexpected to be represented on
3M’s Board. The Nominatingand Governance Committee
periodically reviews with theBoard the appropriate skills andcharacteristics required of Board
members given the current Board
composition. It is the intent of theBoard that the Board, itself, will bea high-performance organization
creating competitive advantage forthe company. To perform as such,the Board will be composed of90• Roles in and contributions valuable
to the business community• Personal qualities of leadership,character, judgment, and whether the
candidate possesses and maintains
throughout service on the Boarda reputation in the community atlarge of integrity, trust, respect,competence, and adherence tothe highest ethical standards• Relevant knowledge and diversityof background and experiencein business, manufacturing,
technology, finance and accounting,marketing, international business,government, and other areas; and• Whether the candidate is free ofconflicts and has the time requiredfor preparation, participation,
and attendance at all meetings

In addition to these minimum
requirements, the committee will

#improvinglives

3M 2019 Sustainability Report

also evaluate whether the nominee’s
skills are complementary to theexisting Board members’ skills,
the Board’s needs for particularexpertise in certain areas,
and will assess the nominee’s
impact on Board dynamics,
effectiveness, and diversity ofexperience and perspectives.

Board refreshment
We regularly add directors
to infuse new ideas and fresh
perspectives into the boardroom.
In the past five years, six new
independent directors have joined
our Board. In recruiting directors,
we focus on how the experienceand skill set of each individualcomplement those of their fellow
directors to create a balanced
board with diverse viewpoints andbackgrounds, deep expertise, andstrong leadership experience.
At the 2019 Annual Meeting, twonominees will be standing forelection to the board for the firsttime. Dr. Dambisa Moyo, whojoined the Board in August 2018,
holds a doctorate in economics
from the University of Oxford andhas expertise in examining theinterplay of international businessand the global economy. Her
background includes advising

companies in their investment
decisions, capital allocation, andrisk management. Prior to founding
Mildstorm LLC, she worked atGoldman Sachs in various roles,
including as an economist, and at
the World Bank in Washington, D.C.
The combination of her banking
and financial services industry
experience along with her extensive
knowledge of macroeconomics,
geopolitics, and global markets
brings valuable insight to the 3M
Board. A new nominee, Pamela J.
Craig, is the retired Chief Financial
Officer of Accenture plc, a global
management consulting, technology
services, and outsourcing company.
She served as Accenture's CFOfrom 2006 through 2013, following
her many other leadership rolesat Accenture during her 34 years
with the company. Her experienceas CFO at a global Fortune 500
company, and her skills in financial,audit, risk management, andgovernance matters, adds valuable
expertise to the 3M Board.

Stockholder
engagement
We maintain a vigorous stockholder
engagement program. During 2018,
members of senior management
met with a cross-section ofstockholders owning approximately

36 percent of our outstanding
shares, or approximately 55 percent
of our institutional stockholders.
The meetings included an overview
of 3M and a discussion of practices
on corporate governance, including
Board refreshment and diversity,
director evaluation, directors’ skills
matrix, Sustainability, succession
planning, and Board leadership
structure. The feedback fromthese meetings was shared with
the Board of Directors and helped
inform the Board on corporate
governance practices and trends.
Although stockholder engagement
is primarily a function ofmanagement, our lead independent
director and executive chairman
attended some of these meetings.

Director
independence
The Corporate Governance
Guidelines and Director
Independence Guidelines providethat independent directors must
comprise a substantial majorityof the 3M Board. A director
is “independent” if the Board
affirmatively determines thatthe director has no material
relationship with 3M directlyor as a partner, shareholder,
or officer of an organizationthat has a relationship with thecompany and otherwise meets therequirements for independenceof the listing standards of the
New York Stock Exchange.
The independent directors will
make the Board decisions on
corporate governance matters.
The Guidelines specify the criteria
by which the independence ofour directors will be determined,
including strict guidelines for
directors and their immediatefamily members with respect topast employment or affiliation
with 3M or its independent
registered public accounting firm.
The Guidelines also prohibit Audit
and Compensation Committee
members from having any direct
or indirect financial relationshipwith the company, and restrict
both commercial and not-for-profit
relationships of all directors with
3M. Directors may not be given
personal loans or extensions ofcredit by the company, and all
directors are required to deal
at arm’s length with 3M and its
subsidiaries, and to disclose
any circumstance that might beperceived as a conflict of interest.

91How we work

Corporate governanceDiversity

Governance actions

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

Our committees are designed
to assure the execution of 3M’svision for the future. The Board
currently has 13 directors andthe following four committees
following their charter: Audit,
Compensation, Finance, andNominating and Governance.

An inclusive culture at 3M is built
on our Be Respectful Principles— to respect the dignity andworth of individuals; encourage
the initiative of each employee;
challenge individual capabilities;
and provide equal opportunity. 3M
is continuously focusing on building
and maintaining an inclusive culture.
Additional information on our
inclusive culture can be found in
the diversity and inclusion section.

92

During 2018, the Board of Directors
held eight meetings. Overallattendance at Board and committee
meetings was 97 percent.

Commitment
to economic,
environmental, andsocial topics
At 3M, we are purpose-driven
enterprise. We know that we
can grow our business, while
collaborating to solve some ofhumanity’s greatest challenges.
We apply our expertise andtechnology to solve problems
collaboratively, and with a focus
on long-term, sustainable solutions
that demonstrate our commitment
and societal purpose. Sustainability
is fundamental to our business— from Sustainability-inspired
innovation, product stewardship,#improvinglives

3M 2019 Sustainability Reportand in our operations. And
we know that innovation isn’t
innovation, without Sustainability.
As we seek to improve every
life, we see partnerships to help
our customers and communities
achieve their Sustainability
goals as key to that ambition.
Our corporate Vision states:“3M technology advancing
every company... 3M products
enhancing every home... and 3M
innovation improving every life.”
It is that vision — carried out incollaboration with our customers,
communities, and partners —that guides our Sustainability
strategies, goals, and aspirations.
Sustainability is a topic at all levelsof our company. On an annual basis,
our Chief Technology Officer and
our Chief Sustainability Officer
report directly to the Board’s
Nominating and GovernanceCommittee on our Sustainability
efforts. The Science, Technology,
and Sustainability (STS) Committee,
our executive committee, provides
leadership, oversight, andstrategy to encourage and assure
Sustainability opportunities andinnovations are supported andrecognized at the highest levelof the company, and with strong
policies, and procedures, in place.

3M
Board
Directors
3M
Board
ofof
Directors
Director tenure

Director age

6.5

Gender diversity

62.9

Average Director tenure

31%

Average Director age

Women Directors

0-4 years

5-9 years<59 years

60-65 years

Women

10-14 years

15-19 years

66-70 years

71-73 years

Men

Board size and independence

Independent Lead Director

11 / 13

Directors are independent• Independent Lead Director with robust authority
Independent

Not independent

Meeting attendance• Separate Chairman and CEO positions

Other public company Boards

97%

1.4

Overall attendance at Boardand committee meetings
There were eight Board meetings in 2018

Average Board positions

0 Boards

1 Board

2 Boards

3 Boards

93Corporate governance

3M 2019 Sustainability Report

In 2018, STS members included our
Executive Chairman of the Board,
Chief Executive Officer, SeniorVice President and Chief Financial
Officer, and Senior Vice President
Research and Development
and Chief Technology Officer.
Throughout 2018 this executive
committee met with increasing
frequency as we created our
new business strategy, known
as our Strategic Sustainability
Framework. This senior leadershipteam was highly engaged andinvolved in its development andremains increasingly engaged
in the resulting innovations andactions. To assure Sustainability isembedded across our enterprise,a global Sustainability leadershipteam meets monthly to discussshared opportunities, best practices
and new ideas. This team includes
senior representation from all ofour business groups as well as 3M’s
regions worldwide, and membersof key functions contributing to our
Sustainability strategy and plan.

3M’s Code of
Conduct

Lobbying and Political
Activities Principle

More than a century of operatingwith uncompromising integrity
has earned 3M trust from ourcustomers, credibility with ourcommunities, and dedicationfrom our employees. And
for the sixth year in a row,
3M has been recognized by
Ethisphere® as one of the World’s
Most Ethical Companies®.

All 3M political action committee(PAC) receipts, disbursements,
and contributions are publicly
disclosed as required by law.
3M’s reports are available on theFederal Election Commission
website. Corporate contributions
directly to candidates, politicalcommittees, ballot measures,
Section 527 organizations, andissue advocacy or “lobbying” areoutlined in our Political Activities
and Issue Advocacy report.

#improvinglivesLo
fo okirw ng
ard

How we work

• Economic development incentives
and workforce development• Military readiness and modernization

The Code of Business Conduct
and Ethics for Directors of
the Company incorporates
long-standing principles ofconduct 3M and the Board
follow to assure the company’sbusiness and the activities of
the Board are conducted withintegrity and adherence to thehighest ethical standards, andin compliance with the law.

In 2018, 3M’s top priority
public issues were:We regularly post governancenews, events, and presentation
information in the Investor Relations
section of our website. See 3M
events and presentations.

• Personal and worker safety policy• Sustainable solutions andenvironmental policy

Detailed information on eachpriority, can be found in our
2018 U.S. “Top-10” Priority
Public Policy Issues statement.

Governance Links
 or more information on corporateFgovernance at 3M, see:
• Corporate Officers• Tax reform implementationand conformity• Automobile electrificationand connected vehicles• Board of Directors• Committee Composition• Governance Documents

Our Code of Conduct applies
to all employees, including ourCEO, Chief Financial Officer,
and Chief Accounting Officer.
See our Code of Conduct
section for additional details.

• Chemical regulation• Health care policy• Annual Reports andProxy Statements• International trade policy,
agreements, and enforcement• Regulatory reform

94

95

How
How wewe work
work

Enterprise risk

#improvinglives

3M 2019 Sustainability ReportEnterprise risk
We continually evaluate ourapproach to potential risks facing
the company.

Our actions
Corporate-level

Ourcommitment
The concept of risk appetiteand tolerance is an essential
component of our strategicplanning, and it’s the responsibilityof our senior business leaders
to plan accordingly.
It is our firm belief that good
corporate governance practices
serve the long-term interestsof stockholders, strengthen
3M’s Board of Directors andmanagement, and further enhance
the public trust 3M has earned
from more than a century ofoperating with uncompromising
integrity and doing businessthe right way. Governanceincludes broad risk oversight by
the Board and its committees.
Risk analysis is reported to thefull Board, the General Auditor,
and Chief Compliance Officer.
Both the General Auditor andChief Compliance Officer are
96

appointed by, and report to, theAudit Committee of the Board.

Risk oversight
The Board has delegated primary
responsibility for the oversightof risks facing the company to
the Audit Committee. The 3M
Company Board of Directors
Audit Committee Charter statesthat the committee will “discuss
policies and procedures withrespect to risk assessment andrisk management, the company’s
major risk exposures, and the steps
management has taken to monitor
and mitigate such exposures.”
The Vice President and General
Auditor, Corporate Auditing, whose
appointment and performanceis reviewed and evaluated by the
Audit Committee, is responsible forleading the formal risk assessmentand management process within
the company. The General Auditor,
consulting with the company’s
senior management, annuallyassesses the major risks facing thecompany and works with those
executives responsible for managing
each specific risk. The General
Auditor periodically reviews with
the Audit Committee the majorrisks facing the company and thesteps management has taken tomonitor and mitigate those risks.
While the Board’s oversight of risk
is primarily performed by the Audit
Committee, the Board has alsodelegated to other committees theoversight 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 and manufacturing
company like 3M. 3M’s 10-K,
Item 1A, outlines risk factors
applicable to the company.

3M’s Enterprise Risk Management(ERM) initiative, launched in 2001,
has helped assure adequate
recognition and ownership of themost significant potential risks tothe company’s shareholder value,
using a process that proactively
identifies and communicatesenterprise risks within the company.
This includes confirming thatappropriate plans and oversight
exist for all major risks, providing
for ongoing review and assessmentof risk, and aiding in generatingawareness and engagement ofgeneral risk matters throughout thecompany. The approach provides
a customized capability thatleverages 3M’s comprehensive,
experience-based global knowledge
and capabilities rather thantools often used in financial orinsurance-oriented businesses.
To assure long-term success, weare committed to discoveringand preparing for all potential
threats to our Vision. Risk owners
familiar with the environmental,
economic, and business aspects
within the company are interviewed
and requested to complete athorough assessment for theirrespective risk(s). Together, withsubject-matter experts and senior
management, the outcomesare mapped to demonstrate therelative level of risk and likelihoodof risk. This “heat map” identifies
the highest-risk areas to focus
internal efforts on. In addition,
external resources and data arecontinually reviewed to assist in
the risk identification process.
The results of our various risk
assessment exercises are sharedwith the Corporate Operations
Committee and the company’s
full Board of Directors.
3M places particular emphasis onprotecting our company 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 around cybersecurity
training and awareness, especiallywhen it comes to avoiding phishingand other threats targeting 3M.

Board members andgeneral auditor
meet 1:1
In 2018, the Vice President, General
Auditor met with each 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 toshare what risk issues were top-ofmind for them, and which should
be reviewed and addressed by the
Board. For most Board members,
the most critical risk in 2018 andinto the future was cybersecurity.

Business-level
In 2018, 3M served customers
through five business groups.
Annually, leadership from eachbusiness group presents to theBoard, and the Board discusses
and approves, detailed long-term
strategic plans for the company,
both at the area and business grouplevel. Each presentation includes
the following: an overview of thebusiness group, short- and longterm financial performance andgoals, an assessment of portfolio
growth opportunities, strategic
priorities to drive our Value Model.

Facility-level
Our Environmental, Health,and Safety (EHS) management
system looks carefully at each
3M site and new acquisition andperforms a crisis risk analysis that97

Enterprise risk

considers factors such as potential
impact to the environment, thecommunity, and 3M employees.
Each site is ultimately ranked
based on the risk it poses tothe company, and necessary
steps are taken to minimize
potential risks. Acquisitions are ofparticular focus as we bring eachnew sight under 3M’s protocol
with the proper training.

The Crisis Management Planning
Guidelines are designed toprovide a common framework for
integrating crisis management
into the standard operations ofeach 3M facility. All plans must be
prepared in accordance with goodengineering practices and with thefull approval of management. Also,
to evaluate the effectiveness ofthe plans, scenario exercises are
conducted periodically at facilities.

#improvinglivesLo
fo okirw ng
ard

How we work

3M will continue deploying asingle enterprise resource planning(ERP) system worldwide to provide
a consistent, comprehensive, anddiscrete information platform
for our businesses everywhere.
It’s another example of ourcommitment to continual growth
and adaptation to emerging risks
in an ever-changing world.

In addition to conducting
environmental, health, and safety
risk analysis, we created a crisis
plan for every single 3M plant in
the world. Although we hope tonever use the Crisis Management
Planning Guidelines, it’s criticallyimportant that we have them inplace, keep them up to date, anddrill employees often to make sureeveryone understands what to doshould an emergency occur. We
care about the safety of our people
and communities around the world.

98

99

How we work

Code of Conduct#improvinglives

3M 2019 Sustainability Report

Global complianceprogramOurcommitment
The Code of Conduct is part of
3M’s Value Model and positions
3M for long-term growth. Our
values bind us together as 3M
employees — across businessgroups and across geographies.
Great companies are built on
trust ­— trust from customers,
shareholders, employees, andcommunities. We’ve earned thattrust and our reputation for integrity
over many decades, and no one
at 3M is free to compromise it.
To make it as simple as possible, wehave one Code of Conduct that
100

Business Conduct
Committee
applies to our 92,000 employees
in over 70 countries globally. Our
Code of Conduct summarizes
3M’s compliance principles
and raises awareness for doing
business the right way, always
and everywhere. The Code is ourguide for answering questions
and providing direction when theright choice may not be clear.
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, andother leaders, are responsible forknowing and following the ethical,
legal, and policy requirements that
apply to their jobs and for reporting
any suspected violations of law or
the Code. Executives and managers
are accountable for creating an
inclusive workplace environmentthat encourages asking questions
and raising concerns.
The Code is available in
25 languages and sets clear
expectations not only for
employees, but also for relevant
stakeholders and business
partners. All new employees
receive a copy of the Code.

The 3M Business Conduct
Committee is composed of several
senior executives and is chairedby 3M’s Chief Compliance Officer.
This committee oversees 3M’s
compliance efforts to assure that
3M has an effective and worldclass compliance program thatis agile and anticipates changes
in the external landscape andinternal business strategy. The
Business Conduct Committee, as
appropriate, updates the Audit
Committee of the 3M Board of
Directors and Corporate Operating
Committee. Additionally, similarcommittees exist at country or
regional levels to operationalize andprioritize compliance activities.

3M’s global compliance programis managed and administeredby the Compliance and BusinessConduct Department, led by the
Chief Compliance Officer andVice President of Complianceand Business Conduct. The
department is staffed withcompliance professionals
stationed around the world. The
Chief Compliance Officer reports
directly to the Audit Committeeof the 3M Board of Directors.
The Audit Committee assists
the Board in oversight of 3M’s
legal and regulatory complianceefforts. This direct reporting
line assures the independenceof the Compliance and BusinessConduct Department, which is
responsible for overseeing andadministering strategic, systemic,
and operational components
of 3M’s compliance program.
The compliance program isdesigned to meet the U.S. Federal
Sentencing Guidelines and, as
designed, meets similar global
standards and requirements ofother countries’ anti-bribery laws.

The program consists of:• A core set of businessconduct principles• Education and training• Periodic evaluations, audits,and procedures to measure
and assess the complianceprogram’s effectiveness• A 24-hour global helpline andwebsite through which all
employees and others can reportconcerns and ask questions
anonymously, in most countries• Risk-based due diligence on business
partners, potential acquisitions, andcandidates for hiring and promoting• Investigation expertise• Incentives and discipline to addresscompliance successes and failures

Compliance training
and education
3M offers a comprehensive online
compliance training program
to all employees worldwide.
The program’s training modules are
assigned to employees based on
their role and area of responsibility101• Security and Protection• Gifts, Entertainment, and Travel• Avoiding Bribery and Corruption:
A Global Overview• Understanding Global Competition• Creating a HarassmentFree Workplace• Code of Conduct and Ethical
Decision Making• Recognizing Conflict of Interest

The Compliance and BusinessConduct website on 3M’s intranet
offers additional on-demand
online training courses. In addition
to offering online training, theCompliance and Business
102

Reporting concerns
Upholding 3M’s Code of Conduct
and values is the responsibility of
everyone acting on 3M’s behalf.
We encourage our employees to
ask questions or report concerns tomanagement, 3M’s Compliance andBusiness Conduct Department, 3M
Legal Counsel, 3MEthics.com, theirassigned human resource manager,
3M Corporate Audit Department,or the Audit Committee of theBoard of Directors. Our strong
ethical culture requires andempowers employees to makethe right choices every day. 3M
makes it clear that speaking up is
the right thing to do. We know ouremployees care about the company
and want to do the right thing.
In addition, 3MEthics.com is a 24hour confidential and anonymous(where permitted by local law)

The Compliance and BusinessConduct Department has the
responsibility to review every
business conduct concern thatis reported. After review, thedepartment determines which
reports require an investigation.
If an investigation is needed, anappropriate investigation resource
is assigned to the matter. For
concerns that are substantiated,disciplinary actions may be taken.
Discipline comes in a range offorms consistent with similar
past violations, from warnings,
to suspensions, to termination.
Disciplinary actions may impact one
or more persons associated with asingle substantiated violation. The"Global allegations and disciplinary
action graph" illustrates businessconduct related reports raisedin 2018, using our reporting
tools found at 3MEthics.com.

In 2018, we initiated a project toincorporate metrics from a broader
range of 3M functions that conduct
investigations and track employee
concerns. This provides a more
complete view of the frequency
and type of concerns reported
globally and better reflects the“speak-up” culture that exists within
3M. This data is used to prioritize
resources and focus strategies.

“Speak up” poster
3M encourages all employees to“Speak up” to raise a concern orsuspected violation of the Code.
In 2018, we created a poster thatencompasses many of our mostfrequently used languages andencourages our speak-up culture.

直言不讳! Ungkapkan!

Speak up!
ΜΙΛΗΣΤΕ ΑΝΟΙΧΤΑ
Suarakan Kecurigaan!

Prehovorte!

VorbestePozovite¡ HAZLO SABER!

อย่าละเลยไม่รายงานพฤติกรรมผิดจรรยาบรรณ
Be 3M

1400
1200
1000
800
600

0
Allegations
reported

Substantiatedallegations

Disciplinary
actions

In 2018, data was compiled using a different method than previous years.

Высказывайте сомнения!

Spregovori

Total number
Total
number200

3M Ethics & Compliance

非倫理的な行動 - 報告する義務があります。
ROZMAWIAJ Z NAMI! Çekinme Söyle!

3M global
disciplinary
actions
3M
globalallegations
allegationsand
anddisciplinary
actions

400솔직하게 말하기! Tala ut!

• Data Privacy and Protection:
The Real World

helpline and online reporting
system. It is managed by a thirdparty vendor and is available to 3M
employees and others externally.
The system does not trace phone
calls or use caller identification, nordoes it generate or maintain internal
connection logs containing internet
protocol (IP) addresses. Web-based
reports are made through a secureinternet portal, which does nottrace or show user screen names.

NGRIJE ZËRIN
Sprechen Sie mit uns

Conduct Department — in close
collaboration with 3M Legal Affairs,
local compliance contacts, finance,and human resources — provides
frequent, tailored in-person training
to businesses, subsidiaries, staff
groups, and third parties. Someof this training occurs as part ofan annual schedule, and othertraining occurs as requested
or deemed appropriate.

Exprimez-vous
Progovori
Fale!

within the company. Most courses
are mandatory for approximately
46,000 global employees. An
annual training plan is establishedeach year based on an assessmentof internal and external factors
to prioritize topics and timing of
deployment. Online courses areoffered in 22 languages. Examplesof recent training modules include:#improvinglives

3M 2019 Sustainability Report

Parla apertamente

Code of ConductГовори открыто 直言不諱!
Hãy lên tiếng!

How we work

Speak up.
Ask a question.
Raise a concern.
Go to 3MEthics.com

3M’s non-retaliation
process
3M prohibits retaliation against
anyone who raises a businessconduct concern or cooperates in acompany investigation. To monitor
this risk, a compliance investigator
contacts the reporter several
months after an investigation
closes to discuss if the person has
experienced any form of retaliation.
This is done either by phone or via
email for non-anonymous reporters.

For anonymous reporters who
used 3MEthics to raise a concern,
the follow-up is handled through3MEthics to maintain anonymity. If
claims of retaliation are identified,the investigation team will follow
up on them. All concerns raised
are expected to be made in goodfaith. 3M has a strong position
against retaliation, which isreflected in the Non-Retaliation
Policy and within 3M’s Employee
Obligations and Reporting Principle.

103

How we work

Assessments
A dedicated team within
3M’s Compliance and BusinessConduct Department conducts
periodic compliance and antibribery evaluations in various 3M
subsidiaries and operating units
each year. These evaluations
are selected using objective andsubjective risk factors, and include
reviews of financial transactions,compliance records, interviews
with business personnel, andaudits of selected third-party
intermediaries. In 2018, weinterviewed approximately 900
non-production employees aspart of the evaluation process.
Additionally, the number of third
parties reviewed or visited throughan evaluation grew substantially.
This growth was enabled by anenhancement introduced in 2017
called a local evaluation, whichuses the same methodology ofthe existing evaluation program
but has a more focused scope.
A number of local evaluationsin 2018 specifically focused on
third-party business partners.
Not only do audits, evaluations,and risk assessments help detect
opportunities for improvement
and gaps in processes orprocedures, they also reinforce
104

3M 2019 Sustainability Report

Code of Conduct

the importance of operating inan ethical, compliant manner.

Commitment toanti-corruption
As a member of the United Nations
Global Compact (UNGC), 3M iscommitted to support Principle
10 on Anti-Corruption. Ourcommitment and involvement with
the UNGC, and with our communityof peer companies, provides us
with the opportunity to collaborate
and share best practices related
to work against corruption in
all its forms. Additionally, thecompliance professionals on
our team regularly participate,present, and are members oforganizations and associations
working to improve compliance
controls and reduce legal risk.
3M’s Code requires compliancewith all applicable anti-bribery laws,
including the U.S. Foreign Corrupt
Practices Act, the U.K. Bribery Act,
Brazil’s Clean Company Act, andlocal laws where 3M operates. It
applies to 3M employees, as well as
to our business partners. In addition,
3M’s Anti-Bribery Principle and anticorruption policies and procedures
have been communicated toall employees. Our “Avoiding

Bribery and Corruption: A Global
Overview” training is required ofmost non-production employees
and specifically employees inhigher-risk roles, including thosein legal, audit, sales, marketing,export, and global trading. The
Chief Compliance Officer provides
quarterly updates on all activities
to the Audit Committee of theBoard of Directors and the 3M
Business Conduct Committee.
3M’s commitment to anti-corruption
is also reflected in our managementof third-party intermediaries
and other business partners. 3M
conducts due-diligence reviewsof our third parties based on anassessment of risk factors, includingtransaction size, type of relationship,
government interactions, andgeography. Depending on theoutcome of the review, we
respond to any identified risks
with specific actions, such as
training, inclusion of relevant
contractual terms, and other riskmitigating controls. 3M may end
a relationship with a business
partner if the risk presented isdetermined to be too high andcannot be appropriately mitigated.
Further, the Compliance andBusiness Conduct Department
collaborates with 3M Legal Affairs

on due-diligence processes related
to potential venture investments
and mergers and acquisitions.
These processes help identify risks
in the target company before an
acquisition or investment is initiated.
This process accelerates our efforts
to integrate an acquired company’s
employees to 3M’s complianceprogram and culture. Ultimately,
the Compliance and BusinessConduct Department is charged
with conducting a risk review
and implementing any necessary
remediation activities upon theclosing of every acquisition. In
2018, as part of our complianceintegration process, we completed
a follow-up compliance culture
survey that was initially piloted
with an acquisition in 2017. Thesesurveys help identify whether
new employees understand
3M’s compliance expectations
and where further assistanceor training can be provided.
Finally, the Compliance andBusiness Conduct Department
has a group of specialists
focused on assuring that 3M
conducts government contractand subcontractor businessin compliance with all laws.
This group trains, assists, andcoaches 3M employees on all
government contracting needs,#improvinglives

including providing guidance
and advice on identifying,
managing, and mitigating risk.

Political values
3M respects our employees’ rightto engage in the political process,and, at the same time, 3M iscommitted to prevent potential
corruption. When allowed by law,
any corporate political contributions
outside of the United States requireapproval by the Area Vice President
and assigned legal counsel.
For additional information on
our Code of Conduct, please
visit https://www.3m.com/3M/
en_US/company-us/about-3m/
compliance-business-conduct/.

“At 3M, we pride
ourselves with
our long-standing
commitment to doing
the right thing. By
Living our Code of
Conduct, it allows
us the opportunity
to advance every
company, enhance
every home, andimprove every life.”— Veena Lakkundi

3M Chief Compliance
Officer and Vice President
Compliance and BusinessConduct

Third-party brochure
To enhance our communications
and expectations with third parties,
3M has an online training courseand has created a brochure forour 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 tocommunicate with our business
partners regarding our commitment
to combat global bribery.
105

How we work

Our actions
Code of Conduct
We recently launched a refreshedversion of our Code of Conduct,
Be 3M, which is available in
25 languages. We leveraged
feedback from global stakeholders
and employee focus groups to
identify opportunities to makethe Code more contemporary.
We improved readability andadded new sections: social media,
Sustainability, speaking for thecompany, and volunteering andcharitable giving. To create moreinterest, we added interactive
learning aids, additional graphics,
and imagery. We maintained ourCode’s organization around thesix “Be” mandates, which areuniversally understood (Be Good,Be Honest, Be Fair, Be Loyal, Be
Accurate, and Be Respectful).

106

Code of Conduct

Global Ethics andCompliance Day
All over the world, we held Ethics
and Compliance Day events tofurther build employee engagement
about the Code and doing theright thing. For the second year
in a row, we held a compliance
day in the U.S. Featured speakers
included Mike Roman, Chief
Executive Officer; Veena Lakkundi,
Chief Compliance Officer andVice President Compliance andBusiness Conduct; and Ivan Fong,
Senior Vice President and GeneralCounsel of 3M. In addition, we helda panel of business leaders who
discussed ethical challenges, andwe hosted a customer who spoke
about the value of working with an
ethical and compliant company. The
theme of the U.S. compliance day
was myth-busters. 3M scientists
showcased experiments andexplained scientific myths, while
experts from various compliancefunctions in the company (including
Corporate Audit, Global Security,
Government Contract Compliance,
Treasury, Finance, Investigation
Teams, EHS, IT Quality andCompliance, Regulatory Trade,and U.S. Compliance Contacts)
were stationed at booths where
they held interactive discussions#improvinglives

3M 2019 Sustainability Reportwith employees about their area ofexpertise, answered their questions,and addressed some common
myths about their areas. Games andvideos were created to bring theCode to life in a fun, interactive way.

and new processes to guide theprogram and provide clarity on
the type of conduct we recognize.
This program is important to 3M,
because it is the way we recognize
employees who go above andbeyond to do the right thing.

Case studies
and metrics

Living theCode award
This year, we promoted our Living
the Code recognition program more
broadly and widened the audiencefrom which we accept nominations.
Previously, nominations wereraised through the Complianceand Business Conduct Department
and our network of compliancecontacts in our countries andbusinesses. Also, this year, we
opened the nomination process
to all employees and launched
a communication campaign toenergize employees about the
program. To assure timely receipt
and processing of nominations, wecreated a supporting infrastructure

To provide greater transparency
on the challenges our employees
sometimes face, the Complianceand Business Conduct Department
publishes and distributes casestudies quarterly to all employees,
highlighting real-life ethicaldilemmas. The quarterly seriesof case studies not only includes
missteps but also includes positive
stories of individuals who madethe right choice and received our
Living the Code recognition.
Without revealing personal
information, we include with eachcase study details on outcome andany disciplinary action the company
took. Employees appreciate thislevel of transparency and findthe relatable examples usefulfor their learning. Finally, thequarterly series of case studies
includes metrics and infographics
that highlight activity from our

hotline and resulting disciplinary
action taken for cases, which we
substantiate and close each quarter.

Supervisor toolkit
Because most ethical challenges
are raised to a person’s manager
or supervisor, we created a seriesof tools and reference material
for supervisors to help address
employee questions and respond
appropriately when dealing withpotential violations of the law or
the Code of Conduct. The tools
include a simple guide and badge
holder that describes the type ofmatters that should be immediately
escalated to a subject-matter expert
to handle and resolve. Additionally,
we created a handbook to educate
supervisors on the proper way tomanage an employee concern. This
handbook explains the investigation
process, so supervisors havevisibility into how 3M manages
investigations. Finally, we createdan animated video that illustrates
examples of good and poor
practices when dealing with
employee concerns or questions.

Senior leadershiptraining
Leadership is critical to creating
a culture of trust, ethics, andcompliance. To help build upon
our already strong leadershipfoundation, we launched training
sessions for all Country Business
Leaders and their Management
Operating Committee members.
Over 500 leaders went throughindividual one-on-one sessions
with subject-matter experts
in compliance or legal. The
discussions were interactive andcovered topics from all areas of
ethics and compliance, including
respectful workplace, third-party
due diligence, and the investigation
process, to name a few.

107

Lo
fo okirw ng
ard#improvinglives

We continue to focus on building
and maintaining our culture of
ethics, encouraging speak-up,
and enhancing our controls.
Building on our foundation of
executive messaging, we willturn our focus on messaging to
middle management. Middle
management influences day-to-day
operations, and these individuals
are typically the first people
employees consult regarding
ethical concerns. In 2019, we will
launch quarterly communications tosupervisors, providing informationthat will enable them to set theright tone and candidly discuss
ethical issues with their team.
While supervisors play an importantrole in managing employee
concerns, protecting 3M’s
reputation is the responsibilityof all employees. To reinforce
this message, we will continue tohold ethics and compliance daysaround the world. We will also
test new communication tools toincrease employee engagement
and awareness of compliance. We
will develop and release a unique“Moment of Truth” video series thatwill feature 3M employees telling
their stories of ethical dilemmas.

108

We will enhance our existing Local
Compliance Contact Network to
expand our reach, reduce gaps,
and improve our overall culture ofcompliance. We will standardize
the role globally and provide
clarity on the responsibilities of acontact. Further, we will identify
the attributes of an ideal candidate
for this position and the value
the role brings to a contact’s
career development at 3M.
Finally, we will expand our data
analysis by leveraging data fromsources outside of Complianceand Business Conduct, including
Finance, Customer Relationships,
and other systems. We will analyze
this data to be more predictive inthe manner we assess risk, identify
trends, and prioritize activity. We
will also seek to simplify andautomate compliance processes
by integrating them into new
systems and workflow tools at 3M.

109

How we work

Human rights

3M 2019 Sustainability Report#improvinglives

Human Rights
Doing business the right way.
At all times. Under all
circumstances.
Our
commitment
Our Human Rights Policy
applies to all 3M employees,
contingent workers, anyone doing
business with or on our behalf,candidates for hire at 3M, andothers acting on 3M’s behalf.
In 2014, we became a participantof the United Nations Global
Compact (UNGC), thereby
committing to align our operations
and strategies with the UNGC
principles on business and humanrights. We support its “protect,respect and remedy” frameworkand its principles of due diligence.
Furthermore, our Code of Conduct
requires compliance with allapplicable laws and respect forinternationally recognized humanrights in all global operations.
We also recognize the International
Labor Organization Declaration on
Fundamental Principles and Rights
110

at Work. Adopted in 1998, thedeclaration commits member states
to respect and promote principles
and rights in four categories,
whether or not they have ratified
the relevant conventions: freedomof association and elimination of
discrimination in employment andoccupation, the right to collective
bargaining, the elimination offorced or compulsory labor, andthe abolition of child labor.

Leadership Behaviors. We continue
to implement our human rights
program through our global policies,
management system, assessments,
audits, training, and ultimately,
metrics tracking. Our audit process
is truly global, and we are increasing
the number of assessments weare performing, which gives
us a global perspective on ourown internal locations, including
all manufacturing locations.

Guided by deeply
engrained principles
in our culture

Human rights
elements brought
to life

At 3M, the respect for human rights
is deeply engrained in our culture.
Within our own business, 3M’s
approach for managing and assuring
human rights is derived from 3M’s
Code of Conduct, which recognizes
the right of employees to have arespectful workplace. This culture
continues through our humanresources policies, programs, andmanagement systems, including 3M

Our commitment to upholding
human and workplace rights
is embodied in the 3M Human
Resource (HR) Principles, which
respect the dignity and worth of all
individuals, encourage the initiativeof each employee, challenge
individual capabilities, and provide
equal opportunity for development.

A respectful
workplace
As part of 3M’s Code of Conduct
to Be Respectful, the Respectful
Workplace Principle states that“everyone is entitled to respectfultreatment 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 discriminationand harassment, but it involves
more than compliance with the law.
It is a work environment that is freeof inappropriate or unprofessional
behavior and consistent with
3M’s ethics and values — a place
where all employees can dotheir best, and are free to report
workplace concerns without
fear of retaliation or reprisal.”manufacturing. 3M also complies
with all applicable laws relating toovertime and breaks. Additional
information can be found in
our compensation section.

Freedom of
association and theright to collective
bargaining

Working hours andliving wages

3M works diligently to createa work culture that affords all
employees the opportunity to workwithout fear of intimidation, reprisal,or harassment, in an environment
where employees are able to gettheir questions addressed in a fair
and timely manner. In all locations,the company’s relationship with
employees, whether union or
nonunion, is a key responsibilityof all leaders, assisted by humanresources representatives. Human
resources professionals work with
employees to maintain positive
employee relations.

3M complies with minimum
wage legislation globally, and we
make every effort to exceed legal
minimum wage. Our competitivecompensation reflects our practiceof establishing competitive salaryranges based on actual pay datafrom benchmark peer companies in

Our Human Rights Policy has a
specific subdivision on the freedomof association, which assuresthat we respect “the ability of
employees to choose whether or
not to join unions and engage incollective 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 and regulations regarding
notice periods for both unionand nonunion employees.
Approximately 8 percent of 3M’s
global workforce is unionized,with the number rising to 21
percent when labor agreements
are included. We are aware thatin some countries, collective
bargaining rights are not protectedor recognized. Nevertheless, 3M
assures that freedom of associationand collective bargaining aspectsof our Human Rights Policy apply
to all 3M employees worldwide.

Child labor andminimum hiring age
3M is committed to doing ourpart to help abolish child labor.
This commitment is evident in our
Human Rights Policy and Supplier
Responsibility Code. Although
the permissible hiring age for
employees may vary based on thelaws of different countries, 3M
has adopted global expectations
regarding the hiring of minors.
Even if local law permits it, 3M will
not hire any employee nor engage
a contingent worker (individual
provided by a third-party staffing
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How we work

Human rights

agency to perform temporary work)
below the age of 15 for any job. If
the applicable laws impose a higher
minimum age requirement than 15,
3M follows the stricter standard
in compliance with the law.

visitors in both emergency andnon-emergency situations such asaccidents, incidents, loss or theft,
suspicious items or behaviors, andlock-outs. 3M’s Global Security
Operations Center (GSOC) monitors
risks and intelligence sources
worldwide and supports local
operations in severe situations. 3M
Alert emergency messages informworkers of safety and security
threats and situations and also
provide a response mechanism
to check on the safety of workers
after a catastrophic or severe event.
The GSOC also manages traveler
safety, using 3M-provided tools
and resources to help employees
anticipate disruptions and easilychange their travel plans if
needed, and to provide emergency
care and services if needed.

Forced andcompulsory labor
3M complies with all applicablelaws and employment regulations
and does not engage or participate
in forced labor. We have thosesame expectations for all
vendors doing business with us.
This commitment is evident in
our Human Rights Policy andSupplier Responsibility Code.

Safe and healthy
workplace
3M policies assure that thecompany provides a safe andhealthy workplace to all employees,
and that the 3M workplacecomplies with applicable laws,
regulations, and policies.
3M’s facilities are secured andmonitored to protect 3M’s property,
assets, people, and operations,and are accessible with badge
access. Uniformed security workers
support and assist workers and112

Additional information can befound in the health and safetysection of this report.

Healthy living
Health, wealth, wellness, andresilience create a framework for acollection of programs, resources,
and services designed to help
employees and their families
achieve their well-being goals.
While programs and services
vary globally, examples include#improvinglives

3M 2019 Sustainability Report

free flu shots, health-conscious
options in the cafeterias, travel
kits, and immunizations fortravelers, on-site fitness centersand medical care, telehealth,adoption and foster care support,
and the FlexAbility approach toproviding more flexibility to help
employees optimize their work andpersonal life through one-on-one
planning with their supervisor.

Standard defines the rules thatmust be followed to protect
workers’ medical information.
This standard assures that 3M
medical information is handled ina manner consistent with the 3M
Data Privacy Principle. The standard
covers access, collection, storage,
security, release of information,transfer of records, record
retention, and record destruction.

Additional information can befound in the employee programs
section of this report.

Some of our preventive programs
include hypertension management,
cardiovascular risk reduction,smoking cessation, and nutrition
consultations and cancer
prevention in partnership with
the Healthy Living program.

3M Medical
3M Medical is committed toprotecting and enhancing thehealth and productivity of ouremployees. We promote a
culture of health and well-beingat 3M by understanding andaddressing the potential stressors
in the workplace and promoting
disease prevention and healthimprovement. We also respond tohealth concerns of our workforce
and communities and provide
medical care for our employees.
Our programs are designed toprevent health-related problems.
Clinical services for illness andinjuries are offered at 3M facilities
worldwide. 3M's Medical Record

International
travel health
Our travel health team prepares 3M
employees for international businesstravel through comprehensive
travel health consultations that
include a personal health history
review, immunizations, appropriate
travel medications, and travel
health education. We also assist
all of our employees who may
require medical assistance while
away from their home base.

Medical surveillance

Human trafficking

We monitor our employees
periodically based on theirpotential exposure to chemical andphysical hazards in the workplace.
We screen for early signs ofoccupational illnesses to protect
workers from further exposure
and provide prompt care. We
also look for trends in the healthdata in working populations toassure that potential hazards are
well-controlled. While many ofthese programs are mandated
by government requirements,
others are established to meet
3M’s more protective standards.

Our approach to humantrafficking, sometimes referred
to as “modern slavery,” is very
simple: We do not tolerate it.

3M is one of the few companies
supporting an internal occupational
epidemiology program. For the
past 24 years, this group has
conducted epidemiologic studies
to examine health outcomes among
3M manufacturing workers andtheir potential association withoccupational exposures and otherworkplace conditions. Occupational
epidemiology research is used
to inform risk assessments
and the development of risk
management activities within 3M.

Our Human Rights Policy details our
prohibition on human trafficking.
We are committed to using
effective systems and controls toprevent human trafficking fromtaking place anywhere within
our business or supply chains.
These prohibitions apply to 3M
and its subsidiaries as well as
to our federal contracts andsubcontracts for either commercial
or non-commercial items.
Expectations regarding laborand human resource practices
also apply to all of our suppliers
worldwide (see the supplier sectionof this report for more details). 3M
suppliers must comply with all local
country labor and human resource
laws and cannot use labor that is
obtained through mental or physicalcoercion, physical punishment,
slavery, or other oppressive labor
conditions, and cannot engage inany form of human trafficking.

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Human rights

Security personnel
training andprocedures

acknowledge 3M’s Systems
Access Control Standard andother 3M policies and standards.

With the alarming rise in corporate
security breaches worldwide,
our Human Resource Security
Standard presents the controls
required to achieve humanresource security based on industry
standards and best practices.
Roles and responsibilities of
information security employees,
contingent workers, and suppliersmust be defined and documented inaccordance with the 3M Information
Security Management System(ISMS). Background checks verify
on all candidates for employment,
contingent workers, and suppliersmust be carried out in accordancewith relevant laws, regulations,and ethics, and be proportional
to the business requirements, theclassification of the information to
be accessed, and the perceived risks.
As part of their contractual obligation,
employees must agree to andsign the terms and conditions of
their employment contract, whichstates not only their own, but theirorganization’s responsibilities for
information security. Contingent
workers and suppliers in the
U.S. are required to review and114• 3M Compliance and BusinessConduct Department• 3MEthics.com

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

Filing, addressing,and resolving
workplace concerns
When concerns related tohuman rights, labor practices,
environmental, or safety issues
arise, our employees and nonemployees are encouraged andtrained to raise questions orreport misconduct or potential
misconduct. We provide a variety
of mechanisms for reporting
and resolving concerns:• Employee’s management and/or human resource manager• 3M legal counsel#improvinglives

3M 2019 Sustainability Report

See 3M’s Business Conduct website
for more information regarding
how to report a concern. Additional
information can be found in the
Code of Conduct section.
3M prohibits retaliation against
anyone who asks a question,
reports a concern in good faith,or participates in a company
investigation. This position isreflected in the Non-Retaliation
Policy and within 3M’s Employee
Obligations and Reporting Principle.
In addition, we conduct auditsof site, workplace, and humanresource practices, and we conduct
assessments and audits of suppliers
to assure compliance with 3M’s
expectations related to labor
practices (see the supplier sectionof this report for more details).

Assuring human rights
through training
We perform global training toassure that all 3M employees
comply with the law, 3M’s Codeof Conduct, supporting policies,

standards, and procedures.
3M’s Compliance and Ethics
Department offers a comprehensive
online compliance training
program for all employees
worldwide so 3M employees areaware of and understand their
responsibilities and obligations.
Our online training programassigns training modules to each
employee based on their role andarea of responsibility. An annual
training plan is established eachyear based on an assessment ofinternal and external factors forprioritizing topics and timing of
deployment. This includes a seriesof new employee onboarding
courses. New employees
receive email notifications
about course assignments andtimeline for completion. New
employee courses are due
within 60 days of assignment.

Our actions
Strong support forhuman rights charters
3M continues to support several
human rights charters. Among them:• United Nations Global Compact• Universal Declarationof Human Rights• European Convention
on Human Rights• United Nations Guiding Principles
on Business and Human Rights• International Labor Organization’s
Declaration on Fundamental
Principles and Rights at Work• OECD — Organization for
Economic Co-operation andDevelopment Guidelines forMultinational Enterprises,
including OECD Due Diligence
Guidance for Responsible Supply
Chains of Minerals from ConflictAffected and High-Risk Areas• Agenda 21 — United Nations
Convention against Corruption

Holistic approachto human rights
due diligence
The 3M Code of Conduct
describes the company’s businessconduct principles, or core values,
which set forth global corporate
expectations for all 3M employees
and third parties who act on 3M’sbehalf. The principles in this Coderemain consistent with 3M’slong-standing business conduct
principles, its values, and our shared
ethical standards for conducting
business with uncompromisinghonesty and integrity.
In our view, human rights due
diligence requires a holistic
approach. We assess our own
business, and others acting on
our behalf — in supply roles,
government relationships,
acquisitions, mergers, anddivestitures — to identify thesalient human rights issues
applicable to our business. We
have a grievance mechanism
in place, 3MEthics.com, which
can be used to raise a concern
regarding any adverse humanrights impacts. We also comply
with all applicable laws and honor

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Human rights

the principles of internationallyrecognized human rights when
faced with conflicting requirements.

commitment, and includes thesepoints of review: safe and healthy
workplace, respectful workplace,
workplace security, work hours
and wages, freedom of association,
child labor, forced labor, humantrafficking or recruitment fees toobtain employment. Evaluations areintegrated into other assessmentand management processes

Assessinghuman rights
Our assessment on human rightsaligns with our corporate Human
Rights Policy, as outlined under Our

and are based on material issues
regardless of where they’re
identified within the value chain.

Within our own
business

Based on this assessment process,we have determined that in our
various spheres of influence (ourown business and others acting on
3M's behalf), the sphere with thegreatest potential for human rights
impact is within our supply chain.

Within 3M, our approach to
managing and assuring humanrights aligns with the 3M Codeof Conduct, which recognizes
the right of employees to havea respectful workplace.

Segment

Salient risk*

Action plan to address

3M employees

Assuring conformancewith the 3M Code of
Conduct

See Code of Conduct section for additional details on our actions

Others acting on 3M’sbehalf

Unsafe working
conditions, mistreatmentof workers

See Workplace Environmental, Health, and Safety Principle

Suppliers

Assuring conformancewith 3M Supplier
Responsibility Code
expectations

See supplier section for details on our risk-based supplierassessment process

Government relations

Not adhering to allapplicable laws, rules, andregulations

See Doing Business with Government Agencies and Contractors
Principle for more information

Acquisitions, mergers,and divestitures

Failing to recognize humanrights issues during theacquisition integration ordivestiture process

Prioritize and address human rights issues relative to risk andcompliance; see Human Rights Policy, Respectful Workplace Principle,
and Workplace Environmental, Health and Safety Principle for more
information

Local communities
and customers

Inequitable opportunities
to succeed in science,technology, engineering,and math (STEM); skilled
trades occupations

Assess community partnerships to assure support is dedicated tounderrepresented populations to receive equal pay for equal work;see our community section for additional information*Risks as per human rights (safety and healthy workplace, respectful workplace, workplace security, work hours and wages, freedom of association,
child labor, forced labor, or recruitment fees to obtain employment, and human trafficking)116#improvinglives

3M 2019 Sustainability Report

To protect that right, our Employee
Relations (ER) Assessment tool
enables any 3M location globallyto assess its policies and practices.
Using the tool, and tracking data
throughout the assessment process,leaders 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. Our ER organization audits
locations around the globe toensure adherence to our principles,policies, and procedures.
For additional details on our
employee processes, see thediversity and inclusion andemployee programs section.

Others acting on
3M’s behalf
Upholding 3M’s Code of Conduct
and values is the responsibilityof everyone acting on 3M’sbehalf. Multiple processes are inplace to assure 3M’s principles
are being upheld by theseparties. Case in point: ourapproach to health and safety.
Under our Workplace
Environmental, Health, and Safety
Principle, 3M’s Code of Conduct
requires 3M employees to selectand retain suppliers, contractors,
or outsourced manufacturers
and service providers whocomply with all applicable laws
and regulations and meet 3M’s
environmental, health, andsafety values. In addition, at 3M
locations, all visitors, vendors,
and 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.

Our suppliers
At 3M, we recognize the choices
we make for our material andservice providers must also reflect
our values. We want our suppliers
to share our commitment tomaintaining compliant, responsible,
and sustainable operations andpractices. In addition to fullcompliance with all applicablelabor and human resource laws,
we expect our suppliers to becommitted to upholding thehuman rights of workers, andto 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, and we havea 2025 goal to drive supply chain
Sustainability through targeted
raw material traceability andsupplier performance assurance.
For details on our risk-based
supplier assessment process,see the supplier section.

Government relations
Under our Be Fair Principle, 3M
is committed to be a responsible
company with uncompromising
integrity in all its dealings withlocal, state/provincial, and national
governments, and their prime
contractors and subcontractors
around the world. In all our
activities with governments, we
carefully follow all applicablelaws, rules, and regulations.

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Human rights

Before entering into any
government contract, or
any agreement related to agovernment customer, 3M
employees must consult 3M’s
Government Contract ComplianceDepartment or their businessgroups assigned legal counsel.

Acquisitions,mergers, anddivestitures#improvinglivesLo
fo okirw ng
ard

How we work

Human trafficking and forcedlabor-related provisions are also
included in 3M’s government
contract flow-down requirements
for suppliers. In the United States,
the government has adopted
a regulation (FAR 52.222-50)
prohibiting human trafficking,including slavery, servitude, forced
and compulsory labor, and coercion
to induce a commercial sex act
or to procure the same — all ofwhich result in the deprivationof a person’s liberty by anotherin 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.

118

3M regularly pursues the sale andpurchase of business interests.
For each business that may be
acquired or divested, humanrights issues are prioritized andaddressed relative to risk andcompliance during the acquisition
integration or divestiture process.
Additional information can befound in our Respectful Workplace
Principle and environmental
management section of this report.

Partnering with local
communities andcustomers

especially to the communities
in which we live and work.
We have created a robust,
stakeholder-driven approachto Sustainability materialitythat includes human rights. Our
materiality assessments andstakeholder engagements are vital
components of our company’s
strategy and reporting. Details of
our materiality assessment canbe found in our global challenges
section. Our 2025 Sustainability
Goals were developed fromthe materiality assessment.

3M is committed to upholding
legislation designed to eradicate
modern slavery and humantrafficking. In 2019, we will be
tracking new country laws,
including the Australian Modern
Slavery Act. As always, we seek
to strengthen our due-diligence
management system to identify andaddress any salient human rights
issues within our sphere of influenceand stay aligned with internationallyaccepted frameworks like theUnited Nations Guiding Principles.

For additional information on our
stakeholder engagements, see
the global challenges section.

Under our Be Respectful Principle,
3M’s core values include treatingeach other and our stakeholders
with respect and respecting oursocial and physical environment.
With our Every Life Ambition, we
work to imagine a world where
every life is improved. The power
is in partnership. As a global
corporation, we believe that wehave a significant responsibility
to society in general, and119How we work

Compensation

3M 2019 Sustainability Report#improvinglives

Compensation

Competitive and comprehensive.
Across the board andaround the globe.
Ourcommitment
3M is committed to providing
competitive market pay andcomprehensive benefits.
In addition to providing aprofessional work environmentthat promotes innovation andrewards performance, 3M’s totalcompensation for employees
includes a variety of componentsthat support sustainable
employment and the ability tobuild a strong financial future.

We believe in pay
for performance
3M is a pay-for-performancecompany. In addition to earningbase salary, executives arecompensated for their contributions
to the company’s growth,
profitability, and other goals.
This compensation falls into one

120

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 ofannual awards of performance
shares and stock options, and incertain circumstances (for purposesof hiring or retaining key talent,for example), grants of restricted
stock or restricted stock units.
As detailed in the 3M Boardof Directors’ Compensation
Committee Charter, all aspectsof compensation are reviewed
regularly by the Compensation
Committee, which is composed
solely of independent nonemployee directors. The committee,
along with their independentcompensation consultant, assesses
the design and risks associatedwith executive compensation
and recommends changes, whenappropriate. Its recommendations
related to compensation for
3M’s Chief Executive Officer
are subject to ratification by allof the independent membersof the Board of Directors.
The Compensation Committee
reviews stakeholder proposals
relating to executive compensation
matters and recommends
to the Board the company’s
response to such proposals.
3M executives are also eligible
to participate in three deferredcompensation plans that enable
them to save for retirement or forother reasons and receive certain
other benefits, such as financial
planning services. Approximately
100 executives were eligible forthis program in 2018, including allof the named executive officers.
3M’s 2019 Notice of Annual
Meeting and Proxy statement
provides additional detail on
executive compensation.

Directorcompensation
philosophy andelements
The Nominating and GovernanceCommittee periodically receives
reports on the status of theBoard’s compensation in relation
to other large U.S. companies andis responsible for recommending
to the Board changes incompensation for non-employee
directors. In developing its
recommendations, the committee
is guided by the following goals:• Compensation should fairly pay
directors for work required in acompany of 3M’s size and scope• A significant portion of the totalcompensation should be paid in stock
to align directors’ interests with thelong-term interests of stockholders• The structure of the compensation
should be simple and transparent

Periodically, at the request of
the Nominating and GovernanceCommittee, Frederic W. Cook
& Co., Inc. conducts a survey of
director compensation at otherlarge U.S. companies and provides
expert advisory support to thecommittee on the compensationof non-employee directors.

Here, we are allleaders
Compensation to 3M employees
is not just tied to their job
description, but how they act
on it. This holds true for generalleadership responsibilities, aswell as performance related
to Sustainability issues. 3M
Leadership Behaviors, standards
set forth in the 3M Playbook,establish expectations and ways
everyone can demonstrate andmeet those expectations throughtheir actions and interactions.
Six behaviors of effective
leaders at 3M:
Play to win

Foster collaborationand teamwork

Innovate

Prioritize and execute

Develop others
and self

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 whoknow how to leverage internal andexternal networks to create winwin solutions.
To make sure we are constantly
innovating, our leaders must
create an environment thatallows and challenges people toseek out new ideas and process
improvements that drive success.
Our “Innovate” Leadership Behavior
includes an expectation to support
3M’s Sustainability goals.
Ratings of achievement against
measurable targets impact
employees’ award values for
those who are eligible for variable
compensation. For those employees
eligible to receive long-term
incentive compensation, ratings of
Leadership Behaviors impact theirlong-term incentive grant values.

Earn up to your true
potential
All employees have the opportunity
to grow through challenging workand be rewarded for their efforts.
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Compensation

Our employee performance review
process directly connects to anindividual’s compensation. The
intent of the process is to alignindividual goals and performancewith business objectives andoutcomes, creating a win-win
situation for the employee and thecompany. In addition, the process
helps identify and develop leaders
to meet 3M’s ongoing talent needs.

At 3M, the proportion of total
rewards aligned with variable(incentive) pay increases with job
level and is reflective of the job
level’s influence on both short- andlong-term results. Eligibility for 3M’s
Annual Incentive Plan (AIP) andLong-Term Incentive Plan (LTIP) isbased on job level, considering boththe job level’s ability to influence the
incentive period being measured
and market competitiveness forthese types of compensation.

#improvinglivesLo
fo okirw ng
ard

How we work

Additional information on 3M’s
employee development andcompensation can be foundin our employee programs
section and at 3M.com.

Our actions
3M has an industry-leading
formula for compensation thathelps provide equitable pay for all
employees. We compare 3M salarydata and compensation practiceannually, and make both market
and competitive adjustments
as needed to assure our pay
levels at each grade level arecompetitive. Ultimately, we factor
in performance accelerators basedon an annual performance review
and the Leadership Behaviors
discussed in Our Commitment.

122

Additional information on 3M
Total Rewards can be found in
our employee program section.

Pay based on role,
responsibilities, skills,
and performance
We maintain our focus on our
global compensation principles toprovide market-competitive, fair,and equitable pay. We continue ourjourney to assure we appropriately
benchmark compensation within
our many locations globally and use
consistent methods of analyzing
our compensation position against
the market. Efforts continued in2018 to standardize and simplify
our methodology around market
pricing, utilizing data sourcesfrom multiple vendors. As wemove forward, we will continue
to look for ways to handle
this process in an increasingly
efficient and consistent manner.
Our Global Market Pricing Processassures market-competitivecompensation for employees anddrives consistency and transparency
in compensation practices acrossall regions. Using common job
descriptions and grades throughout
the world, this project used datafrom three global surveys tobenchmark pay levels and map job
grades, which helps drive our pay
principles for fair and equitable pay.

Delivering on thepromise of fair andequitable pay
3M has the same annual incentive
plan design for everyone, fromour executive officers all the way
through the entire organization —the same payout curves, thresholds,
maximums, metrics, and metricweightings. By direction fromthe Compensation Committeeof the Board of Directors andour continuous improvement
efforts, we redesigned the AIP tobring the payout curves closer tothose of our peers. Peers include
companies we compete with forinvestors, executive talent, andgeneral employee talent. Moving
forward, with the new payout
curves, our plan is designed tobe more competitive, pay out
higher when we exceed targets,and hit the maximum sooner thanin the past. But it’s a give-andtake situation: In order to provide
the chance for a better upside
payout, we must accept theadditional risk of a smaller or no
payout if we don’t meet targets.
In 2019, the Compensation
Committee formally added a review
of matters relating to internal pay
equity to their list of responsibilities.
123How we work

Employee programs

3M 2019 Sustainability Report#improvinglives

Employeeprograms

A culture that nurtures.
Ourcommitment
At 3M, our culture is critical toenabling the magic we know as
science. It’s extremely importantthat all our employees are able
to focus on making an impact on
the world and feel empowered tobring innovation into their work.
Engaged employees, we believe,
are more satisfied with their work,
tend to stay longer, and are moreproductive and committed. We
foster and reinforce behaviors
that support engagement on many
levels, including networking,collaboration, diversity, andinclusion. We focus on the quality
and the impact of professional
development and career growth.
If you want to develop as anindividual, there are manythings that make 3M theplace to be. Our science not
only impacts our customers
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around the world, it makes adifference in the way we work.
Our company touches nearly
every industry in every market
globally. If you work at 3M, youhave a range of development
opportunities few other companies
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 gofrom a lab, to marketing, to sales,
to business development, andall the way up to the C-suite.
3M is so diverse that people canreinvent themselves and theircareer all within one company— and so inclusive that they’ll
be able to collaborate withother curious, creative minds
wherever they go. For more
information, see the employee
diversity and inclusion section.

Ever going, evergrowing2025 Goal: 100
percent participationin employee
development
programs toadvance individualand organizational
capabilities.
Our employees are encouraged
and supported to pursue
areas of interest and develop
career paths and opportunitiesaligned with those interests.

Our actions
Our most valuable resource isour people, and we invest in theirsuccess. We offer a wide range ofbenefits and discounts designed tohelp our people live their best. We
also provide tools, opportunities,
and support for people whowant to grow their careers.

At 3M, our 91,500 employees dowork that matters, applying ourscience in ways that make a positive
impact on people’s lives. Today’s
business environment demands that
we become faster and more flexible
in anticipating and exceeding
the needs of our customers,
shareholders, and employees.
Creating a high-performance
culture built on continual learning
helps 3M achieve business growth
for the company and professional
growth for employees.

Investing in
our people
The growth of our people isessential to the growth of ourbusiness. Although we achieved
over 25 hours per year of training
and development per full-time
equivalent (FTE) employee, those
hours are only one part of thepicture. We leverage a 70-20-10
development model which indicates
that, over the course of a career,
70 percent of learning is done on
the job, 20 percent comes throughother employees, and only
10 percent of meaningful

development is reachedthrough formal training.

plans without performance orcompensation implications.

Our learning orientation andphilosophy focuses on experiential
learning and skill building rather
than classroom-style training. While
we can estimate that our training
numbers are close to averages
found in other large manufacturing
companies, measures suchas training hours or costs per
employee are not leading humancapital performance indicatorsfor 3M. We believe indicatorsthat align people’s results tothe success of the company are
direct performance indicators ofdevelopment programs. Leadershipand employee engagement,
employee retention rates,
brand recognition, acquisition
integration milestones, and Lean
Six Sigma (LSS) project value area few examples of indicators that
contribute to 3M's recognition as anindustry and global business leader.

Employeedevelopment for all

3M has prioritized learning andcareer development opportunities
not only for leaders, but for
all employees. Further, 3M
has separate processes for
employee performance andcareer development. This permits
employees the freedom tocreate meaningful development

Effective employee development
programs are crucial to enable ourgoal 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 to support their career
aspirations and advance strategic
capabilities within 3M. Develop
U provides employees with apersonalized experience byrecommending relevant content
based on their role within theorganization. Additionally, content
is organized and aligned to directly
support our organizational priorities,
including the 3M Leadership
Behaviors, company-defined
functional competencies, LSS,
Sustainability, and supervisory
content. Develop U provides accessto tens of thousands of unique, justin-time learning resources in over
15 languages, allowing 3M’s global
workforce to engage in employee
development. Given this breadth,
we’ve seen more than 50 percent
of our global workforce engage
125How we work

Employee programs

in formal training on Develop U.
Further, 2018 saw the broad-scalelaunch of virtual, instructor-led
trainings and webinars, facilitatedthrough Develop U. These and otherlive events pushed our live event
completions total to over 102,000
and reached both production andnon-production employees globally.

Functions also provide development
suggestions that can grow thecompetency through on-thejob activities or social learning
through a coach or mentor.
Currently, the competency-based
resources cover approximately
93 percent of the non-production
professional employee population.

Employees create or update
development plans that include
activities to elevate individual
skills and further careerdevelopment. Employees canuse additional skill-mapping
tools in collaboration with theirsupervisors to identify long-term
desired goals and define actions
needed to help reach those goals.

At 3M, wisdom is shared. Just
as we share and combine ourtechnologies, we also share andcombine our knowledge throughmentorship and storytelling. We
define mentoring as a uniquerelationship in which a mentor (amore experienced person) helps
a mentee (a less experienced
person) with their development in aparticular area. Further information
can be found at Mentorships at 3M.

A key part of career development
is understanding career paths andresources. 3M makes available toemployee’s functional competencymodels that clarify expectations
regarding the knowledge, skills,
and abilities to be developed
over a career within a specificfunction. Based on sharedexpectations, career paths arealigned with investment in training
and development resources. Eachfunction follows its competencymodel to leverage 3M’s learning
platform and direct employees torelevant training opportunities.
126

Doing things right,
right from the start
3M invests in onboarding anddeveloping new employees so thatthey have the tools, resources, andnetworks they need to succeed.
Our onboarding process begins
at the time a candidate accepts a
job offer and continues throughthe first year of employment.

#improvinglives

3M 2019 Sustainability Report

A consistent, comprehensive
onboarding platform provides
pre-start information delivery andengagement for new employeeson the front end, and clear
metrics, reporting, and tracking
for 3M on the back end. This
investment sets up new employees
to succeed and make meaningful
contributions from the start.

future by embedding inclusive
leadership strategies, promoting
development through corporatesocial responsibility, and offering
mentoring opportunities.

Nurturing
the leader ineveryone

The 3M Leadership Way is asuite of high-potential leadershipdevelopment journeys within
the 3M Global Academy ofInnovative Development, bringing
one consistent approach to how
3M develops leaders across all
geographic areas, business groups,
and functions. Each program is an
integration of customer-focused,
results-driven, and experiencebased learning that takes leaders
outside the classroom walls to
sharpen their skills with leadershipchallenges for our customers and in
our global communities.

Leadership development is acompetitive advantage at 3M.
To maintain this advantage, weare leveraging new technologies
and delivery methods, thereby
assuring impact, consistency,
and global inclusivity.
Through various stages in aleader’s career journey, there aremany development opportunities
and programs available, acrossevery geographic region and 3M
business. Programs include a rangeof online and self-paced offerings,
from personal effectiveness tofinancial acumen, that cover
core skill development aligned
to the 3M Leadership Behaviors.
These programs also focus on the

Global executive
and leadershipdevelopment

Catalyst
Catalyst is a 12-month journeyfocused on developing thecompany’s top 250 leaders. These
individuals are game changers withaspiration, potential, performance,
and with a pace even beyond
their high-potential peers tomake a step-change impact for3M and the world we live in.

Amplify
Amplify is a nine-month journey
for leaders with potential toreach the director level. Similar
to the Catalyst journey, Amplify
is scaled to the leadershipchallenges faced by future
directors. These individuals alreadylead teams and organizations
across every part of 3M.

IgniteIgnite is a six-month journey forleaders with potential to reachsenior manager level. These
individuals are transitioning tolead teams, and development isfocused on critical challenges
such as vertical and horizontal
management savvy and building
and leading high-performing teams.

Spark
Launched in 2017, Spark is ayearlong development journey
for individual contributors andfrontline leaders with potential
to reach manager level. For the
first time, 3M has leveraged thepower of technology to offer

leadership development andbring together (virtually) morethan 3,700 leaders from aroundthe world under one journey.

Development forpeople leadersWith focus on the critical skills thatleaders need to be successful inleading others, the Essentials for
People Leaders program emerged
as a multi-module program withflexibility to be delivered as faceto-face classroom training or as
online, virtual training. This flexible
delivery format is key to providing aconsistent development experience
for all leaders of 3M while stillallowing for needed localization.

All-leader
development
All our people globally, at every
level of the organization at 3M,
are provided with opportunities
to develop themselves as leaders.
These leadership development
offerings target areas ofstrategic importance, including
the development of a growthmindset, agility, innovation, andcustomer focus. Delivery ofcontent is available face-to-face inexperiential workshops, through127

How we work

Employee programs

virtual instructor-led training,and via self-paced e-modules.

allow 3M to execute our strategies
and meet our objectives.

Coaching

The performance assessment
process helps hold each of ouremployees accountable for hisor her contribution and everyday
behaviors. The process aligns
personal goals with organizational
goals — we strive to achieve
our goals in ways that supportand strengthen our culture andachieve sustainable growth. In
addition, 3M has long prioritizedtaking a well-rounded view of anindividual’s performance, assuringthat employees are treated in afair and consistent manner:

3M has invested in an internal teamof certified leadership coaches
to support and accelerate thedevelopment of leaders aroundthe world. These coaches work ina variety of ways with 3M leaders.
We offer one-on-one time with acoach to help employees apply newlearning or work through a changewith on-demand coaching. We
also work with teams to help themstay close to changing stakeholder
expectations and lead 3M into the
future. More than 725 leaders havealready worked with a leadershipcoach at 3M. More than 3,000
leaders have been through acoaching skill-building workshop.

Be rewarded
for your efforts
To drive 3M’s successes, we
provide incentives to our employees
to excel. Our process includes twocomponents: measurable targets
agreed upon by employees andtheir supervisor, and Leadership
Behaviors ratings, which reflect
the extent to which the employee
engaged in core behaviors that128

• Performance goals, linked tohigher-level organizational goals,
are set jointly between theindividual and his or her leader• Tools provided to leaders facilitate
conversations between leadersand employees to assure mutual
understanding of expectations
and desired behaviors• Feedback on progress toward
these goals is provided formally,
twice a year, and supervisors
are taught and encouraged toprovide routine feedback to help
employees adjust performanceand meet or exceed goals#improvinglives

3M 2019 Sustainability Report• Management Team Reviews function
not only to provide comprehensive
information about an employee, butalso to further the goal that rating
considerations will be consistent for
employees within an organization

Each year, all 3M non-production
employees identify theircontributions in meeting their
specified goals through an
employee performance process. 3M
strives to have 100 percent of nonproduction employees complete theentire performance review process.
In 2018, all eligible employees
were rated through the calibration
meetings, and these employees andtheir supervisors received tasks
to complete the year-end process
in the performance system.

Learning fromlistening
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 and relevant feedback tomajor units within the company(divisions, locations, and countries,
for example). 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 to regularly
assess the state of employee
engagement and other workplace
factors critical to high performanceand being a great place to work.
We provide in-depth reports
for the leaders of the businessgroups surveyed and assure theirleaders and top 3M leadershipare aware of these survey results.
This is a cycle of continuous
improvement for us, year after year.
Each unit or business group thatsurveys must review their results,
present them to their employees,
and execute an action plan toaddress the issues that arise fromthe results. We built supports into
our process that make it easier
to bring about successful change
through action planning — such asaccountability checks and specifictools to act on the results. We
identified key drivers of employee
engagement and developed anddeployed learning opportunities
for leaders (multiple on-demand
instructional videos on engagement,
for example). We continuallyassess survey content and update
as needed to assure alignment
with company strategy and major

initiatives. Thus, our surveys support
strategy and business objectives
directed at supporting sustainablecorporate success through our
employees’ behavior on the job.

Long may yourcuriosity flourish here
Our global voluntary turnoverrate continues to be under 6
percent, a source of great pridefor our company. We calculate
voluntary turnover separatelyfrom retirements, companyinitiated turnover, and reductions
in force. Voluntary employee
turnover is defined as turnover
due to employee-initiatedreasons (for example, returning
to school or going to anotherjob in a different company).
Total turnover includes voluntary
turnover and all other forms ofturnover (for example, termination
as a result of restructuring,termination for poor performance,and retirements). Our total
employee turnover rate is anannualized rate that measures
employees who have terminatedor 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 notinclude contingent workers.
3M follows all applicable local
laws and regulations regarding
notice periods in the event ofbusiness operations changes.
3M’s Human Resources Department
is unique in that we have one global
system to track HR information.
At every 3M location around theglobe, we have instant accessto this information — using
our global reporting tool.

Workforceexperience, services,and rewards
The more 3M employees contributeto 3M’s success, the more successthey create for themselves. We
offer a competitive base pay, anddepending on position, variable
incentive pay linked to company
and individual performance. We
also offer a wide range of benefits
and discounts designed to help
3M employees live their best.

129

How we work

Employee programs

Be rewarded
for your efforts

Employee parental leave

Medical, dental, and vision plan
options; savings and retirement
plans; a 3M employee stock
purchase plan; and many otherresources can enhance a 3M
employee’s life, both physicallyand financially. All regular full-time
employees in the U.S. are eligible
for these benefits — regular parttime employees who work at least
20 hours a week are also eligible.
Some programs and benefits
may differ internationally due
to local laws and regulations.
As of January 1, 2019, benefit
eligibility also extends to domestic
partners and their children.

Usage parental leave

2017

*2018

Female

306

354

Male

794

805

1100

1159

Female returned

292

288

Male returned

765

732

Total returned

1057

1020

U.S. work retention rate

96.1%

88.0%

Total

*2018 data may change. Some employees currently out on leave may be returning in 2019.

Our parental leave policy helps
employees be their best selves athome and at work. All U.S. salaried
mothers and fathers of newborn or
newly adopted children are entitled
to up to 20 weeks (10 weeks paid
and 10 weeks unpaid) of parental
leave. This policy was instituted
in late 2016. In 2018, 1,159 U.S.
eligible employees participated,
including 354 females and — we’re
proud to say — 805 males.

after leave, was 81 percent for
females and 91 percent for males.

In 2018, our overall U.S. work andretention rate, those returning

We offer a competitive base pay,
and, depending on position, variable

130

Further information on 3M’s wide
range of benefits, healthy living,and discounts designed to help
employees live their best can befound at: Working at 3M: Benefits.

Highly competitivepay#improvinglives

3M 2019 Sustainability Reportincentive pay linked to company
and individual performance. For
more details, see the compensation
section and Working at 3M: Pay.

Where and when to doyour best work
Based on their job function, 3M
employees and their supervisors
can make individual arrangements
for a flexible work practicethat maximizes professional
and personal productivity.

FlexAbility puts into practice a
new way of thinking: that yourwork life and your personal life
can coexist. A FlexAbility plancan put the power in your hands
to make choices that benefit you,your work, your team, your friends
and family, and 3M. For moredetails, visit FlexAbility at 3M.

3M
globalby region
3M global
employeesemployees
by region

Our footprint

70,000

Data related to employee metrics
has been derived from our humancapital management system. For
the data in the charts provided
below, 100 percent has been
calculated with no assumptions.
Additional information on data
management can be found in
the about report section.

60,000The employee metrics in thecharts are reflective of employee
headcount as of December 31, 2018
(total number of 3M full-time andpart-time employees) not 3M fulltime equivalent (FTE) employees.
Due to acquisition integration
schedules factored into 3M’s
human capital management system,
detailed employee information
below may differ from employee
totals in 3M financial reports.

10,000

Full andpart-time,
total total
Fullandpart-time,
100,000
90,00080,00050,00040,00030,00020,0000
2014
Global

2015

2016

2017

Asia PacificCanadaLatin America

United States

2018
Europe,Middle East,
Africa131

How we work

Employee programs

3M 2019 Sustainability Report

3M regional and global employee age distribution

3M regional and global employee age distribution
Full and part-time, percentage of total

Full and part-time, percentage of total#improvinglives

3M global new employee hires by region
3M
Total global new employee hires by region

Total

100

16,00090

14,00080

12,00070
60

10,000

50

8,000

40

6,000

30
20

4,000

10

2,000
0
Asia
Pacific

Generation Z(>1994)

CanadaEurope,Middle East,
AfricaGeneration Y(1981-1994)

Latin
America

UnitedStatesGeneration X(1961-1981)

Global0
2014
GlobalBaby Boomers(1943-1960)

3M regional and global employee hires age distribution
3M
regional and global employee hires age distribution
2018 percentage

2018 percentage

2015

2016

Asia PacificCanadaLatin America

United States

2017

2018
Europe,Middle East,
Africa3M global contract employees by region

Permanent
and temporary
employment total
3M
globalcontract
employees by region

Permanent and temporary employment total

100

12,00090

10,000

80
70

8,000

60

6,000

50
40

4,000

30
20

2,000

10

0

0
Asia
Pacific

Generation Z(>1994)132

CanadaEurope,Middle East,
AfricaGeneration Y(1981-1994)

Latin
America

Generation X(1961-1981)

UnitedStates2016

GlobalGlobalBaby Boomers(1943-1960)

2017

2018

Asia PacificCanadaLatin America

United States

Europe,Middle East,
AfricaContingent hourly or daily workers only, see GRI 102-8 and employee contract definitions

133

Employee programs

3M 2019 Sustainability Report

3M global female employees by region

Percentage
of total employees
3M
globalfemale employees by region#improvinglives

3M global female employees

3M global female employees
Full and part time

Percentage of total employees

Full and part-time50

40,00040

35,00030

30,00020

25,000Lo
fo okirw ng
ard

How we work

20,00010

15,0000
2014
Global2015

2016

Asia PacificCanadaLatin America

United States

2017

2018
Europe,Middle East,
Africa10,000
5,000
0
2014

2015

Part-time

Full-time

2016

2017

3M global
female hiresby region
3M
globalfemalehires by region
Percentage of total hires

3M global females in management
3M
globalPercentage
of total females in management

Percentage of total hires

Percentage of total

60

30

We will also be continuing ourwork to meet employees where
they are by offering more choice in
how content is made available. For
example, we’ll have both singlehour virtual sessions and multi-hourin-person workshops on the same
topics — allowing employees withthe time and interest to invest in an
in-person session, and those withless time or a remote location toattend a condensed virtual program.

20

50

10

40

0

30

2014

2015

2016

2017

Values represent the percentage of management positions held by women

20

10

0
2014
Global

134

2018

2015

2016

Asia PacificCanadaLatin America

United States

2017

2018
Europe,Middle East,
AfricaIn 2019, we will continue to work
toward our 2025 Sustainability
Goal for employee participation indevelopment by strengthening our“development for all” philosophy.
One example: We’ll be launchinga Data Analytics / Big Data
University-type program, given
this skill set has been identified asa development need across 3M.

2018

As we build 3M for the future,strengthening our culture is a
top priority. At its core, culture
is how we do things at 3M, andit belongs to all of us equally. As
part of obtaining information or
input on a topic, we are engaging
our employees by broadening
our listening strategies. In 2019,
actions will be taking place
on how 3M’s culture operates
today and how it can andshould operate in the future.
135

How we work

Health and saftey#improvinglives

3M 2019 Sustainability Report

Healthand safety

All good things start with a safeand healthy working environment.
Ourcommitment
As a company that makes a vastarray of products designed toprotect workers, 3M is front andcenter in the global effort to bringnew science and innovation to
workplace safety. At the sametime, as an enterprise with
91,500 employees working
around the world, we are always
taking steps to further advancethe safety of our employees.
3M is committed to helping
improve the safety and health ofpeople worldwide, so we can all
focus on what matters most to us.
We also embrace this commitment
for our own operations, and, tothat end, will continue to takesteps to further advance thesafety of our most important
asset: 3M employees.

136

Employee safety
and health
The 3M Safety and Health
Policy applies to 3M operations
everywhere, including new
acquisitions. Hazards in 3M’s
workplaces must be wellunderstood and effectively
managed to protect 3M
employees, visitors, locations,and surrounding communities.
In addition, in the spirit ofcontinuous improvement,much is being done to evaluate
opportunities to raise our safety
standards. We visit locations to
identify and manage environmental,
health, and safety (EHS) risks;
evaluate compliance to regulatory
requirements and conformance to
3M policies and standards; identify
opportunities for continuous
improvement; and share exemplary
practices among 3M auditableentities. Additional details onthese efforts can be found in theenvironmental management section.

To assure consistent reportingand metrics globally, 3M, likemany multinational companies,
follows the U.S. Occupational
Safety and Health Administration(OSHA) recordkeeping rules andformulas to record and measure
injury and illness rates worldwide.
At all facilities within 3M’soperational control, 3M employees
and contingent employees
are covered by our injury andillness recordkeeping rules.

Contractor and visitor
safety and health3M requires all visitors, vendors,
contingent workers, and contract
workers at 3M locations to follow all
applicable 3M workplace safety andhealth requirements. For example,
contractors must complete a
pre-qualification process before
they may perform work on 3M
premises. That process includes,
among other things, reviewing thecontractor’s employee injury/illness
rates, Experience Modification

Rates (EMR), employee training
records, and safety committee
activities. Contractor performance
evaluations include safety
reviews. Pre-construction
safety reviews are conducted toaddress potential hazards andcontrols related to the work.
Each 3M location has a contract
coordinator who is the main
3M contact for working with
contractors on safety issues. The
contract coordinator is empowered
to participate in pre-bid meetingsand pre-qualifications forcontractors. He or she is on-site andtherefore available for contractor
meetings and safety reviews asnecessary and appropriate.
Contractors are asked to submit
notification to 3M of worker hours
and any injuries occurring while
performing work in accordancewith a 3M contract. Any contractor
incidents are reported in the 3M
Worldwide Incident Management
System (WIMS), including injuries
and contractor worker hours.
In 2018, a contractor fatality
occurred as a result of injuries
sustained from a fall whileworking at height. Additional
preventive measures were
implemented to further strengthen
the safety of the operation.

Process hazard
management
3M is committed to rigorously
managing the risks associatedwith hazardous processes, suchas those with potential to resultin catastrophic fires, explosions,and sudden release of toxic
materials. We use a Hazardous
Process Evaluation Tool (HazPET)
to categorize hazardous processes.
Process hazard analyses (PHAs) areused to assess the effectivenessof existing safeguards. Layersof Protection Analysis (LOPA) is
also used in some instances toevaluate safety-critical devices andsystems, providing more attention
to independent protection layers.
Facility sitting assessments help
us identify and mitigate "maximum
credible event" scenarios that
could impact workers at somefacilities, and a global initiativethat builds on 3M's existingguidance to our facilities aroundeffectively managing potential
combustible dust hazards.

Our actions
Environmental, health,and safety (EHS)
harmonization projectIn 2018, 3M began laying thefoundation for global harmonizationof the company’s EHS process,the EHS harmonization project.
The goal of this continuous
improvement project is to build
consistency worldwide; standards,
self-assessments, and softwaresystems are being reviewed. For
instance, software systems will be
configured for consistency acrossall EHS functional areas, including
the 3M Global Safety and HealthPlan Tool (GSHP). Ultimately, theimpact of this ambitious project
should make all 3M EHS efforts
more effective and efficient.

Global safety andhealth plan tool
GSHP, which is part of 3M's EHS
management system, is required
to be implemented by global 3M
locations. This approach utilizes awell-developed self-assessment
process that is categorized into
multiple elements addressing various

137How we work

Health and safetyareas and standards related tosafety and health. 3M utilizes avariety of tools to manage risks
from hazards in the workplace.
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 arisk management approach tocategorize hazard levels and define
appropriate levels of control.

• Identification and investigationof potential hazards

risk associated with more than
27,000 higher-hazard activities.

Development and enhancementof tools to readily capture the
key areas above has begun. A
companywide rollout of the
program will begin in 2019.

Since 2012, the SIF rate has seena net reduction of 42.1 percent.
This represents significantly fewer
injury/illness incidents per year.
The following chart shows theworldwide SIF rate trend for all 3M
employees, contingent workers,
and contractor workers combined.

As part of our continuous
improvement efforts, in 2018, GSHP
elements were incorporated in the
new EHS harmonization project.

Culture of
excellence pilot
In the first quarter of 2018, an
initiative was launched at 24
3M facilities globally to drive astronger culture of excellencein EHS. The project touches on
the following key areas of EHS
organizational performance:

Significant injury/
illness and fatality(SIF) rates
At the end of 2018, over 93,000
risk assessments had been
completed, which resulted in theidentification and reduction of

3M
global serious injury/illness incident (SIF) rate
3M global serious injury/illness incident (SIF) rate
Total 3M, contingent, and contractor employees
Total 3M, contingent, and contractor employees
0.20

0.10

• Standardized work
practice observations

0.05• Recognition of exemplary
work practices
138

Ergonomics risk
management
3M’s Ergonomics Risk Reduction
Process (ERRP) is a global,
comprehensive program that
integrates ergonomic job analysis
and engineering design criteria
to reduce exposure to commonly
identified musculoskeletal disorder(MSD) risk factors. To accomplish
this, we apply ergonomics risk
assessment tools globally toidentify and assess ergonomics
risk in the industrial environment.
Online ergonomic training is alsoavailable 24/7 to any employee
who wants to learn more and hasaccess to the 3M intranet. Allof these efforts have paid off inreduced numbers of ergonomic
recordable injury cases; seerecordable incident rate chart.

Industrial exposurerisk management

0.15• Leadership andemployee engagement02014#improvinglives

3M 2019 Sustainability Report

2015

2016

2017

2018

To accurately assess exposure
management programs
and activities, 3M uses thecomprehensive approach outlinedby the American Industrial
Hygiene Association (AIHA).
In the past decade, over 95
percent of all chemical agentsand noise baseline exposure risk
assessments have been completed
for all jobs. As prescribed by our
Global Safety and Health Plan, we
have also conducted proactive
assessments of dermal exposure,engineered nanoparticles, hazard
communication, personal protective
equipment, respirator protection,and ventilation. These assessments
help us determine whether any
changes in exposure management
programs are warranted.

Radiation protection
3M’s Corporate Radiation
Protection and Compliance group(CRPC) provides hazard evaluations
and develops and provides
training for both radiation source
users as well as facility radiation
safety officers to help protect 3M
employees, our customers, andthe public. This includes uses ofradiation in both manufacturing
and R&D; ionizing radiation sources
such as radioactive materials
and x-ray emitting devices; andnon-ionizing radiation sources
such as lasers, microwave andradiofrequency radiation, magnetic
fields, and ultraviolet, infrared, andvisible light. Annual program audits
evaluate facility performance inmanaging hazards during routine
use and maintenance of radiation

sources, security of radiation
sources, training of personnel,
and regulatory compliance.

Global EHS team
3M’s global EHS team continues
to evolve to its current operational
state, which we believe sets us
apart from our peers. Comprisedof business-level EHS committee
members, regional EHS managers,
and corporate subject-matter
experts, this committee will workwith EHS facility staff globallyto address and replicate bestpractices, solve problems, anddrive worthy EHS initiatives
to the operational level.
In 2018, 100 percent of 3M
manufacturing locations
worldwide had active employee
safety and health committees.

139How we work

Health and safety

3M 2019 Sustainability Report

3M regional and global recordable incident rate
Per 100 3M employees (200,000 work hours)

3M regional and global recordable incident rate
Per 100 3M employees (200,000 work hours)
2.50#improvinglives

3M global recordable incident rate category

3M global recordable incident rate category
Per 100 3M employees (200,000 work hours)

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

2.00

Lo
fo oki
rw ng
ar
d

0.6

0.5

1.50

0.4

1.00

0.3

0.50

0.2

0.00
2014
Worldwide

2015

2016

Asia PacificCanadaLatin America

United States

2018

0.1

Europe, Middle East, Africa

0.0

2017

2014

3M regional and global lost time incident rate

3M regional and global lost time incident rate
Per 100 3M employees (200,000 work hours)

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

2015

2016

2017

Contact with
object, equipment

Exposure,chemicalPhysical agent
exposure

Ergonomics

Miscellaneous

Slip, trip, fall

Exposure,
biological agent

Noise exposure

Transportation
accident

2018

In the coming year, 3M will beworking to define how the company
can deliver the highest-quality,
lowest-cost solutions to customers,
with the shortest lead times inevery market that we serve, inthe safest and most sustainable
way. Our EHS organization willbe leading the charge to define
exactly what “safe and sustainable”
means, and how to get there.
2019 will also be year one for
globally deploying the programsand technology that make up the
new EHS harmonization project.

0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0

140

2014

2015

2016

2017

2018

Worldwide

Asia PacificCanadaEurope, Middle East, Africa

Latin America

United States

141How we work

Environmental management

3M 2019 Sustainability Report#improvinglives

Environmental
management
Stewardship for thegreater good.
Ourcommitment
3M formalized its commitment
to environmental stewardshipwhen the company’s Boardof Directors adopted the 3M
Environmental Policy, in 1975.
This policy established theframework for our approachto responsible environmental
management and conservation of
resources, emphasizing preventionof pollution at the source.
Since then, we have createdsupporting policies using a needsdriven process. When we identify
potential risks to the environment,
health, and safety of our employees,
products, and communities, wetake steps to modify processes andstandards to address these risks.
3M’s strategies for sustainable
development encompass the
pursuit of customer satisfaction
and commercial success within
142

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 andour products with sustainableattributes to help customers
reduce their environmental
footprint and help meet their
Sustainability goals. Always, 3M
believes environmental policy andregulations should be guided byscience-based decision making.

Our actions
Setting and implementing
global environmental policies,
management systems, and key
performance metrics enables
3M to continually integrate anddrive environmental stewardshipin our business groups globally,assuring consistency and innovativeenvironmental thinking. As
reflected by our environmental
performance indicators and 2025
Sustainability Goals, environmental
stewardship is a core corporate
commitment backed by decadesof proven performance.

Management
3M’s Environmental Management
System (EMS) framework provides
structure and consistency foroverseeing daily activities, and puts
the company in proactive, rather
than reactive, mode regarding
its environmental focus. We
have extensive 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 andoperational performance metrics
relevant to 3M operations, some ofwhich are provided in this report.

Quarterly scorecards report data at
the facility, division, business group,and corporate levels. Scorecards
are reviewed by executive
management for performance on
selected indicators, enabling 3M
to monitor and identify successes,
risks, and opportunities for
performance improvements andfootprint reductions worldwide.

Environmental, health,and safety incident
management
Since 2010, all 3M locations
globally are required to internallyreport environmental exceedances,
spills, agency notices, and fines
through one dedicated system —3M’s Worldwide IncidentManagement System (WIMS).
WIMS has led to continuous
improvement related to increased
awareness of responsibilities,
understanding of the holistic
system, and more consistentreporting requirements for 3M’s
global operations.

Environmental
investments
In 2018, 3M expended about$27 million for capital projects
related to protecting theenvironment. This amount excludes
expenditures for remediation
actions relating to existing matterscaused by past operations that
do not contribute to current
or future revenues, which areexpensed. Capital expenditures
for environmental purposes
have included pollution control
devices — such as wastewater
treatment plant improvements,
scrubbers, containment structures,
solvent recovery units and thermaloxidizers — at new and existing
facilities constructed or upgradedin the normal course of business.
Consistent with the company’semphasis on environmental
responsibility, capital expenditures(other than for remediation
projects) for known projects arepresently expected to be about$75 million over the next two
years for new or expanded
programs to build facilities
or modify manufacturing
processes to minimize waste
and reduce emissions.

Environmental
management
implementation
Implementation of our
EMS continues to increase
throughout the world.
Our approach calls for each site toestablish, implement, and maintaindocumented environmental
objectives and targets. Whenestablishing an EMS plan, each 3M
location must address financial,technological, operational, andbusiness considerations. The
objectives and targets should bemeasurable and consistent with ourenvironmental policy, including ourcommitments to prevent pollution
and comply with applicableregulations and other requirements.
3M’s multifaceted strategy for
implementing EMS and global
auditing of environmental
compliance for our operations is
key to understanding any potential
gaps and gaining resolution quickly.
All manufacturing locations, andnew acquisitions based on theirintegration progress, are required
to complete a Global Environmental
Management Self-Assessment(GEMSA) at least annually. GEMSA
143

How we work

Environmental management

elements reflect procedures,
systems, and processes that arecomprehensive and mandatory tomaintain compliance with legal orother requirements. Additional ISO
14001 elements and associatedquestions are provided to enablesites to conduct further reviewof their EMS. Data from theassessments are validated throughaudits, site visits by subject-matter
experts, and other data systems.

a wetland database. Site visitsalso identify areas such as rivers,
creeks, and potential wetlands
that are on or near the location.

Beginning in 2019, GEMSA will
become part of the 3M EHS
harmonization project, which
has been designed to bring moreconsistency to environmental,
health, and safety assessments at
3M facilities worldwide. Additional
information on the 3M EHS
harmonization project can be foundin the health and safety section.

Environmental site
assessment
Outside 3M’s EMS and GEMSA, 3M
has completed environmental site
assessments at most locations, withthe goal of identifying potential
historical liabilities. Because of
these assessments, we can identify
these biodiverse areas. Where
applicable, 3M conducts searchesof public databases, which includes
144

We conduct additional biodiversity
assessments during our annual
evaluation, utilizing the definitions
and tools established by the World
Business Council for Sustainable
Development (WBCSD) to screen
the company’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 internationallyrecognized approach for managing
the immediate and long-term
environmental impacts of anorganization’s products, services,and processes. In 2018, 3M
continued working with an outside
consultant to help individual
locations learn how to transition
and recertify to the latest versionof this standard, which wasestablished in late 2015. 3Mcompleted timely recertification of
all relevant sites to the updated ISO
14001 standard by year end 2018.

#improvinglives

3M 2019 Sustainability Reporttraining modules in our Global
Learning System. The modules
are used by learning coordinators
to create courses, manage learnerroles, process certifications, andrun reports; by learners to searchfor courses and launch e-learningclasses; and by supervisors to viewthe learning activities of their direct
reports and to pre-book courses.
All together, our ISO
14001-certified locations accountfor approximately 92.3 percent
of 3M’s total product output.

Third-party assuranceof Sustainability
metric reporting
Bureau Veritas (BV) provided
independent third-party verificationof 3M’s 2018 environmental
data (volatile organic compoundemissions, water, waste,environmental compliancemetrics, energy consumption, andgreenhouse gas emissions) includedin this 2019 Sustainability Report.
For additional information on ourthird-party assurance, see Bureau
Veritas’ Assurance Statement.

Facility selfassessments andauditing
3M verifies regulatory complianceand alignment with prioritized
sections of the self-assessment,
conducting environmental-related
audits on a risk-prioritized basis.
In all, our EHS facility audits
covered sites that manufactured
32.6 percent of sales valueof production (SVOP).

Managing global risk and compliance

Share bestpractices• The frequency of environmental
compliance audits on manufacturing,
distribution, and laboratory
operations is based on relative risk
• At least annually, all global operations
are assessed against a variety ofcriteria to establish a prioritized listof locations for compliance auditing• 3M uses a variety of tools
and resources for compliance
auditing, including:

Key objectives of audits:

MaintaincomplianceComprised in theauditing process:Developenvironmental
professionals

Manage risk

Identify
commonareas forimprovement

Build common
understandingof requirements-- Internally developed complianceprotocols created by subject-matter
experts in regulatory programs and 3M
processes-- Findings, with assignments of
responsibility, due dates for closure, andtracking to completion-- Detailed reviews of findings to assure
corrective actions are complete

3M’s EHS auditing program is
audited periodically by 3M’s
Corporate Auditing Department.
All EHS auditors, except for3M EHS professionals who are
guest auditors, are required totake a certification test. 3M EHS
professionals are assigned toan audit team or lead auditor toprovide support on the auditing
process and/or a specificsubject during the audit.

-- 3M’s GEMSA as an evaluation tool-- Externally purchased complianceprotocols, especially for operations
outside the United States, to assure local
compliance obligations are understoodand met-- Internal environmental complianceexperts from around the company-- External environmental consultants,
as needed, to provide additional
expertise and third-party verificationof our auditing protocols-- Complete and robust
documentation of audits

To help facilities comply with
the new standard, 3M provides
145

Environmental management

Compliance analysis,
documentation, andverification

context of applicable regulatory
requirements and company
policies and standards throughthe use of CAMMS dynamic audit
checklists. In addition, CAMMS
utilizes a risk assessment tool
for prioritizing resources toimplement corrective actions.

3M 2019 Sustainability Report#improvinglivesLo
fo okirw ng
ard

How we work

In an effort to create moreconsistency in global auditingof locations, 3M has refined
its Compliance and Auditing
Management and Metric Systems(CAMMS). Primarily focused in
the U.S. and Canada, CAMMS
is a system for maintaining
environmental compliancedocuments and determinations.
It allows us to conduct internal
compliance audits in the

EHS professional
training
As part of our ongoingtraining efforts, in 2018 3M
conducted monthly webinars
for environmental, health, and3M EHS audit locations, 2013-2018

3M EHS audit locations, 2013-2018

safety management employees on
topics that draw global interest.
The webinars were recorded andplaced on a website that allows
convenient access for those who
couldn’t attend the live events. A
wide range of topics were covered,including environmental auditing,agency compliance inspection, airemission modeling, and specificwaste management procedures.

Commitment to
PFAS stewardship
PFAS are a family of chemicalcompounds made up of two
essential elements – carbon
and fluorine. The carbonfluorine bonds are exceptionallystrong and stable even at hightemperatures. They represent a
broad class of compounds withmany applications of industrial
and social significance, including
health care, advanced electronics,
and replacement of materials withhigh global warming potential.
3M is constantly and proactively
examining the environmental impactof our products. And, as the scienceof PFOS and PFOA progressed,
we learned that these chemistries
had the potential to build up overtime. As part of our commitment

146

to environmental stewardship, in
May 2000, 3M made the decision
to phase-out of certain PFAS
compounds, including PFOS andPFOA. We chose to stop production
ahead of any regulatory requirement
to do so and we shared our learnings
with the EPA and our competitors.

This $850 million grant aligns withour commitment to improving lives
through science and protecting
the environment. The grantprioritizes investments in drinking
water quality, groundwater
recharge, and habitat improvementin the state of Minnesota.

3M is committed to responsible
environmental stewardship andprotecting natural resources. We
work with federal, state, and local
authorities regarding environmental
aspects of our operations andare dedicated to acting withintegrity in the way we treat ourcustomers and the way we treat theenvironments in which we operate.

The Grant is managed by the
Minnesota Pollution Control
Agency (MPCA) and theDepartment of Natural Resources(DNR) through a Working
Group. 3M is a member of theWorking Group but the MPCA
and/or the DNR have ultimate
responsibility to determine theprojects to be implemented.

Globally, 3M has invested morethan $625 million on research,technology, and cleanup efforts
related to PFAS. More than $50
million has gone toward installingcarbon filtration systems fordrinking water sources. More than$100 million has been invested in
testing water sources around thecountry to better understand thequality of both groundwater anddrinking water in communities.

To learn more, visit
www.pfasfacts.com.

Additionally, in 2018, 3M worked
with the state of Minnesota toestablish the 3M Grant for Water
Quality and Sustainability Fund.

We will continue to drive
environmental management programs
across all our global manufacturing
facilities. Starting in 2019, we will be
globally deploying the programs andtechnology that make up the new
EHS harmonization. We will also be
implementing new global standard
work and supporting tools in WIMS
to put best practices in place acrossthe globe for EHS management.
Beyond EHS management, we arecommitted to PFAS stewardship and in
the future, we will continue to lead on
the issues of science and stewardshiparound PFAS. Our activities are
centered in three areas: 1) limit thefootprint of PFAS on the environment,
including our decisions to phase out
the production of PFOA and PFOS
and several product categories,
well before other manufacturers;2) continued investments toremediate any contamination fromour manufacturing facilities aroundthe world; 3) continued investments
in novel solutions to capture andrecycle materials from our waste
streams. As with many of ourother products, we have dedicatedsignificant resources to study PFAS
and continue to develop and share thescience behind PFAS through internal
research, external collaborations
with universities, and interactions
with government regulators.
147

How we work

Raw materials#improvinglives

3M 2019 Sustainability Report

Raw materials
Circular economy
solutions help us domore with less.
Ourcommitment
The world’s population is growing
larger, living longer, and consuming
more — which puts a strain on
finite natural resources. To address
this challenge, 3M continually
looks for ways to recover, reuse,
and recycle by-products and otherwaste material. We are moving fromrecyclable to renewable materials
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,
and transportation efficiency.
The 3M Waste Management
Standard applies to all 3M locations
and provides a framework for
managing all waste types from thetime of generation until reused,recycled, treated, or disposed. The
standard sets a baseline for several

148

core waste program elements andencourages waste minimization
and recycling whenever possible.
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 otherregulated waste requirements isevaluated through the internal
environmental auditing program.
Our Disposal of Chemical Waste
Standard calls for appropriate
management and disposal ofchemical waste to manage risks
and protect the environment.
This includes efforts to reduce
the amount and hazards of wastematerials generated, to recycle orreuse those materials wheneverpractical, and to control waste
disposal through final disposition.

2025 Goal: Reduce
manufacturing waste
by an additional
10 percent, indexed
to sales.
We’ll continue to drive “zero waste”
thinking with our product designs
and process technologies, as wellas material reduction work at our
manufacturing operations. Ourdefinition of manufacturing waste
for this goal includes materials
sent to incineration and landfill.
3M Corporate Environmental
Operations identifies opportunities
for efficiency improvement andmeasures progress 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.

Within each region, business,and division, results are reviewed
quarterly and annually against goals
and tracking metrics. Specialized
teams work on a variety of projects
and programs, ranging from basic
office recycling to more complex
projects such as developing andcapturing intrinsic waste materials
generated off a manufacturing line.
Through an evaluation process,all aspects of material reduction
benefits or risks are reviewed.

2025 Goal: Achieve“zero landfill”
status at morethan 30 percent of
manufacturing sites.
In addition to our waste reduction
goal, we plan to increase
repurposing, reusing, and recyclingof potential waste materials todivert from landfill disposal.
A location receives "zero landfill"status when it has gone a fullcalendar year without sending any
waste to a landfill. It will continue
to be a zero landfill location as longas no manufacturing operations
waste is sent to a landfill. Waste, as
defined here, does not include ash
generated from 3M material sent toa waste-to-energy or incineration
location controlled by a third party.

Our actions
We have decreased our waste
indexed to net sales by 32.4
percent since 2005.
In 2018, we continued with ourcompany-wide strategy on reuse,
reduction, and internal recycling,
as well as collaboration with
our own technical community,channel partners, and civic
and conservation leaders incommunities where 3M operates.
3M’s waste metrics include 3M
manufacturing operations with total
output greater than 4.54 metrictons per year (10,000 pounds),
which represents 99 percent ofsales value of production (SVOP)
of our manufacturing locations.
Composting materials from ourmanufacturing operations is anextremely small component ofour manufacturing operations.
3M practices material minimization
whenever practical to reduce thenumber of by-products generated
and to reuse, recycle, or create
energy from as much of theremaining material as possible.

Between 2015 and 2019, 3M has
reduced the amount of material
sent for landfill and incineration by
11.7 percent, indexed to net sales.
3M is also dedicated to operating inaccordance with all regulations andmanaging waste materials safely
and responsibly. All 3M locations
are required to manage all returned,
recycled, and waste materials fromthe time of generation until reused,recycled, treated, or disposed.

Maximizing beneficial
use of raw materials
Raw material usage is ameasurement of overall productand process yield throughout our
manufacturing processes and is a
key metric for 3M. It is indicativeof operational excellence in our
product design and manufacturing
processes. Our raw material
usage includes the product, theprocess, and all by-products.
The diversity of manufacturing
technologies, processes,
and products at 3M provides
opportunities for creative surplus
material solutions for the company.
Accurate identification andcharacterization of those materials
is a continual education process and149How we work

Raw materials

provides a foundational opportunity
to further advance minimization
and recycling at all our locations.
One business’s surplus material, forexample, may be another business’s
raw material. As we continue togrow internationally, integrating
consistent, yet resourceful, surplus
material management practices
in accordance to 3M standards
remains a key objective.

industries. We’ve chosen a holistic
definition: Zero landfill means no
by-product is sent directly to alandfill from a 3M manufacturinglocation in a calendar year.

As such, we continually look forways to recover, reuse, and recycle
by-products and other surplus
material when feasible. And whenit’s not, recoverable, reusable,or recyclable, we responsibly
dispose of waste materials. The
concept of maximizing beneficial
raw material use is important
both internally and externally toaddress the global challenge ofresource efficiency and scarcity.

Zero landfill
Zero landfill is a goal that resonateswith our local communities as wellas 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 thatspan relevant business sectors and150

Our location waste data arereported in a corporate database
quarterly. This data is third-party
validated at select locations and at
the corporate level. We also require
locations seeking this status tocomplete an internal assessment
to assure accurate reporting.
By the end of 2018, 30.8
percent of 3M locations had
attained zero landfill status.
We have multiple ways to meetour 2025 zero landfill goal,
including product and processoptimization, onsite and offsite
recycling, composting, andwaste-to-energy practices. As wemonitor progress toward this goal,
facilities listed will change due tooperations (for example, facility
closures, acquisitions, and sites
missing zero landfill by one day of
the year). To read how one plant
became zero landfill, go here.

#improvinglives

3M 2019 Sustainability Report

Operational material
management

3P (Pollution
Prevention Pays)

A significant amount of effort in2018 focused on improving andevolving our Global Environmental
Management Self-Assessment(GEMSA) program, which is
now a core element of our EHS
harmonization project. This
program helps drive continuous
improvement in EHS performance.
Requirements were added for allsites to identify and implement
projects to meet their internal goals
for waste and water reduction.
See additional information on the
EHS harmonization project here.

An industry first in 1975, the 3M
Pollution Prevention Pays (3P)
program is based on the belief
that a prevention approach topollution is more environmentallyeffective, more socially acceptable,
and more economical thantreatment. In the last 44 years, theprogram has prevented more than
2.5 million short tons of pollutants
and saved over $2.2 billion basedon aggregated data from thefirst year of each 3P project.
As part of the program, selectprojects are honored based upon
their exceptional achievement.
Some highlights include:I n 2018, 3M Personal Safety
Division was recognized as
division of the year along with 3M
China as country of the year.

Using kaizen events
to improve flow ofprocess streams

Aligning with
Business
Transformation

Kaizen is the Japanese word for“continuous improvement.” In2018, in a continuation of previous
efforts, 3M EHS conducted several
kaizen events, including facility
walk-throughs, waste-by-cause
analyses, and identification of
circular uses for surplus materials.
With our learnings from these
events, we developed a Lean Six
Sigma (LSS) Sustainability Tool Kit
with templates and examples for
replication across the company.

Driving continuous improvementin surplus materials management
has been a multifaceted effort at
3M. In addition to LSS, which helps
us gain a better understandingof all the components involved
and the total cost of materials,
our Business Transformation
platform and our global enterprise
resource planning system bringvisibility to each manufacturinglocation’s by-product. This allows
facilities to better use LSS tools
to identify and prioritize projects,
and ultimately reduce waste.

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

151How we work

3M 2019 Sustainability Report

Raw materials#improvinglives

Global waste diversion by type

Global waste

Metric tons perwaste
MM $USD net sales
GlobalMetric tons waste diversion by type
Global7.0

350,000

6.0

300,000

5.0

250,000

4.0

200,000

3.0

150,000

2.0

100,000

1.0

50,000

0.0

0
2005

2010

2014

Metric tons

2015

2016

2017

Lo
fo okirw ng
ardMetric tons per MM $USD net sales

2014

2018

Starting in 2016, waste no longer includes waste-to-energy.

Waste-to-energy

2015

2016

Offsite recycle

2017
Offsite reuse*

2017
Onsite recycle + reuse**Does not include onsite recycle & reuse and offsite reusefrom 3M's industrial mineral product (IMP) division.

3P global pollution prevention achievements: 1975-2018

3P global pollution prevention achievements: 1975-2018
First year total pollution prevention cumulative totals, short tons

First year total pollution prevention cumulative totals, short tons

2,500,000

Global waste by disposal type

Plans are also underway to expand
the scope of the successful 3P
program. We’re adding the ability
to track 3P projects from the idea
generation phase through projectplanning, execution, completion,
and award recognition. This will
provide business leaders visibility
to barriers that may jeopardize
the success of footprint reduction
projects, and assure the largest
opportunities are addressed.

Metrictonsby disposal type
Global waste

2,000,000

Metric tons
180,000
160,000

1,500,000
140,000
120,000
100,000

1,000,000

80,0003M, with our scientists andtechnologies, is uniquely positioned
to lead the advancementof circular solutions.

60,000500,000

40,00020,000
0

0
1975

1980

1985

Total air pollution
prevented

152

As we look ahead toward a morecircular economy, 3M is focusing
on initiatives that will help us
engage more of the value chain.
We’re looking to maximize productoutput and reuse waste in otherlocations, processes, and products.
In addition, we are working with
our researchers to create products
to assure the effectiveness of raw
materials. We’re also identifying
and testing technologies that makeour processes more efficient.

1990

1995

2000 2005

Total waste pollution
prevented

2013

2014

2015

Total water pollution
prevented �

2016

2017

2018

2014

2015

Treatement, incineration

2016

2017

2018

Landfilled

Starting in 2016, waste no longer includes waste-to-energy.

153

How we work

Water

#improvinglives

3M 2019 Sustainability Report

Water

Giving Earth’s mostvaluable natural resource
the attention it deserves.
Ourcommitment
Applying 3M technology andworking together, we have thestrength to bring real, lasting
improvements to water availability
and quality on a global scale.
Water is the most valuable
natural resource on our planet­— supporting billions of plant,
animal, and human lives andhelping ecosystems thrive. Ourconsumption of this resourcemust be accordingly nurtured
and thoughtfully managed. We
recognize that reducing water
consumption in our operations
and improving water quality
are important elements of
optimizing our environmental
stewardship. Quantitatively, theavailability of water must meetthe needs of current and future
consumer demands. In addition,
working to exceed local, state,

154

and federal regulations withan eye toward the future.
Water is an important component
for the manufacturing and support
systems of several of our products.
Because of 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 andethical responsibility and havea vested interest in preserving
and improving water availability
and quality in the communities
we serve and beyond.
3M’s Water Stewardship Standard
outlines our commitment towater resources that securesocial equity, economic growth,and environmental protection.
Water resources include
water intake, effluent water
discharge, and rainwater.

2025 Goal: Reduce
global water use by anadditional 10 percent,indexed to sales.
3M operations must manage theirwater resources through alignment
with regulatory requirements,
conservation, and reuse, andreporting of water usage internally.

2025 Goal: Engage
100 percent of waterstressed/scarcecommunities where
3M manufactures,on community-wide
approaches to water
management.
3M will partner with local
communities to advance water
recycling and conservation.
Ultimately, we aim to help
these communities build andmanage their own clean water
efforts into the future.

Risk-mitigation
planning
At 3M, we continually evaluate ourapproach to opportunity and risk.
We believe the whole concept ofrisk management is an essential
component of strategic planning.
This includes a broad risk oversightby the 3M Board of Directors and its
committees, with committee-levelrisk analyses reported to the full
Board and executive-level internal
auditor and Chief Compliance
Officer appointed by, and reporting
directly to, the Audit Committee.

3M uses the definitions andtools established by the World
Business Council for Sustainable
Development (WBCSD) to screen
the company’s various locations
and their water use with validated
WBCSD water availability,
population, and biodiversity
information both on a country
and watershed basis. In 2018,
25 sites with annual water use
equal to or greater than 1,000
cubic meters were in waterstressed areas as defined by theextremely high baseline water
stress value, according to the
WBCSD-Global Water Tool.™

Each 3M site located in awater-stressed area is required
to understand its water use,
the associated business risks
and impacts, and to workwith local water resources tounderstand potential impacts on
the surrounding area. It is also
requested that those sites dowater conservation planning,
outlining current and futurewater 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.

3M locations in-scope for the 2025 Sustainability
water-stressed/scarce communities goal

3M locations in-scope for the2025 Sustainability water-stressed/scarce communities goal

United States (11)Mexico (five)
Peru (one)Venezuela (one)India (two)China (two)United States (11)Mexico (five)
Peru (one)Venezuela (one)India (two)China (two)Singapore (two)Japan (one)Singapore (two)Japan (one)155How we work

Our actions
We are continually evaluating
our water use footprint with aconsistent, company-wide focus
on reuse, reduction, and internal
recycling, as well as collaboration
with our own technical community,channel partners, and civic
and conservation leaders incommunities where 3M operates.
3M’s total water usage includes
sanitary, process, heating, cooling,
remediation, and miscellaneous
sources. Water usage data aretracked and reported annually ona global basis for manufacturing
sites that produce greater than 4.54
metric tons (10,000 pounds) of
product per year. The reported dataaccounts for 99 percent of sales
value of production (SVOP), which
provides solid coverage of water
use considered material to 3M’soperational environmental footprint.

156

Water

Total water consumption
has decreased 39.4 percent
between 2005 and 2018 indexed
to corporate-wide net sales.
Results also indicate that thelargest share of 3M water use
in operations is for processing
products in manufacturing andheating or cooling of those
processes and associatedoperations. We continue toimprove our data accuracy throughmonitoring and measurement.
Our water conservation efforts havebeen achieved through recycling,reuse, product redesigns, andimprovements to our buildings
and manufacturing processes.
A majority of our water-intense
manufacturing operations arelocated in the U.S. and Europe, inareas that are not water-stressedor water-scarce. However, theyalso contribute significantly to
our conservation efforts. As thecompany continues to growglobally, thoughtful considerationis placed on the type of operations
and availability of water sources.

3M 2019 Sustainability Report

Water conservation

Globalwater
water
Globalwithdrawal
withdrawal

In 2018, we continued to evaluate
policies, programs, and procedures
while expanding our global
internal systems. We use thosefindings to create, identify, andshare best management practices
related to water conservation.

2018percentage
percentage
2018

We are continuing our efforts
to implement water reduction
projects at targeted facilities while
evaluating external partnerships.
As we have for decades.

Groundwater

47.2%

Other sources

11.8%

Public municipal

19.5%

Surface

21.6%

Case in point: Tonawanda, New
York. In 1946, two chemicalengineers and a chemist cameup with a process for making
artificial sponges to take theplace of natural sea sponges.

#improvinglives

The problem, however, is thatthe process requires a lot ofheat. Previously, this heat camein the form of steam, but a teamof scientists at the 3M plant in
Tonawanda came up with a way
to make sponges that uses lesswater. They repurposed hot
water that previously had goneto the sewer. That water is now
used to heat up the process step
before steam is used, and thenit’s recycled back to the startof the process to be reused.
The new process has led to a 25
percent reduction in water usage
at the Tonawanda plant. This alsomeans less energy is consumed
because less water has to be heatedduring the sponge-making process.

Another case in point: Bangalore,
India. At the 3M plant here, toilet
flushing, cleaning, and gardening
were consuming potable water.
Engineering and the EHS teamat the facility worked together
to identify and map areas where
potable water could be replacedwith recycled, non-potable water.
A separate pipeline was created
to deliver treated water for toilet
flushing, floor cleaning, andgardening purposes. These steps,
and others, produced an overallsavings of 3,226,000 liters of
potable water in the first year.

To learn more on 3M
Tonawanda, go here.

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How we work

Water

#improvinglives

Global water usage
Million cubic meters

Global water usage
Million cubic metersLo
fo oki
rw ng
ar
d

60
50

40
30

Water is a valuable natural resource
for life and thriving ecosystems.
Because of this, 3M continues toactively manage and work toward
reducing our corporate water
footprint while providing innovative
solutions to our customers. Water
will be part of our strategic focus
on empowering Science for
Circular, Climate, and Community.

20
10
0
2005

2010

2014

2015

2016

2017

2018

Global water usage
Million cubic meters per MM $USD net sales

Global water usage

Million cubic meters per MM $USD net sales
0.00250.00200.00150.00100.0005
0.000
2005

158

2010

2014

2015

2016

2017

2018

159

How we work

Climate and energy#improvinglives

3M 2019 Sustainability Report

Climateand energy

Taking innovative steps todecarbonize industry.
Ourcommitment
Through the years, 3M has led
industry in addressing both thechallenges and the opportunities
presented by climate change
and energy conservation.
Our proactive leadership is best
defined by five areas of action:• Executive-level commitment tothese important topics and ourrelated principles, commitments,
and risk-mitigation planning efforts• Industry-leading efforts to
reduce our own greenhousegas (GHG) emissions• Extensive public policy
engagement on both climatechange and energy conservation• A decades-long trackrecord of improving energy
efficiency at our locations
160• Serving our customers through a wide
range of innovative products that
help them improve energy efficiency
and reduce their carbon footprints

Executive-levelcommitment
We are committed to innovate todecarbonize industry, accelerate
climate solutions, and reduce
our own environmental footprint.
This commitment was launchedthrough our Strategic Sustainability
Framework (Science for Circular,
Science for Climate, and Science
for Community), on Investor Day
2018, by Michael F. Roman, 3M’sChief Executive Officer, and isrooted in our ambition to apply
science for the greater good.
As a science-based company, 3M
uses the World Resources Institute(WRI) / World Business Council
for Sustainable Development(WBCSD) GHG Protocol Corporate
Accounting and ReportingStandard to set GHG emission
reduction targets. For this reason,
we are incorporating the findingsof the Special Report on Global
Warming of 1.5°C, published by theIntergovernmental Panel on Climate
Change (IPCC) in setting our goals
and actions.1 This report, preparedby 91 authors from 40 countries
and based on over 6,000 scientificreferences, finds that limiting
global warming to 1.5°C (2.7°F)
above pre-industrial temperatures
would require “deep emissions
reductions” and “rapid, far-reaching
and unprecedented changes inall aspects of society.” Achieving
this goal also would “reduce
challenging impacts on ecosystems,
human health and well-being.”
1Special Report on Global Warming of
1.5ºC (Report). Incheon, South Korea:
Intergovernmental Panel on Climate
Change (IPCC). 7 October 2018.

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:• Apply broadly to countries
or groups of countries, and
GHG emission sources• Be guided by sciencebased decision making• Utilize a consistent, marketbased approach• Encourage investment and protect
intellectual property to facilitate
technology breakthroughs• Include provisions for carbon
emissions trading and/or alternative
investment and compliance 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 the effect of allowing faircompetition 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 theglobal challenges section.

Climate risk
process
Risk-mitigation
planning
Severe weather and longterm trends could aﬀect 3M’soperations and supply chain. To
address these and other risks, 3M
maintains a systematic BusinessContinuity and Planning Process
and Crisis Management Program
which coordinates eﬀorts oflocal crisis management teams
maintained at each 3M locationand international subsidiary.

Corporate and local plans take
into account the risk of natural
disaster, infectious disease,
employee safety, protection ofassets, customer service, and otherbusiness continuity requirements.

Our climate risk
process includes:
Governance
The Board has delegated primary
responsibility for the oversightof risks facing the company to
the Audit Committee. The 3M
Company Board of Directors Audit
Committee Charter states that thecommittee will “discuss policies
and procedures with respect to risk
assessment and risk management,
the company’s major risk exposures,and the steps management has
taken to monitor and mitigate such
exposures.” For the purposes of
discussing climate-related risks,“substantive financial impact”
means an event or circumstancethat would individually or in
the aggregate have a material
adverse effect on the consolidated
financial condition or operationsof 3M Company and subsidiaries
and affiliates taken as a whole.

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How we work

Climate and energy

While the Board’s oversight ofrisk is primarily performed by the
Audit Committee, the Board has
also delegated to other 3M senior
management committees theoversight of risks within their areasof responsibility and expertise.
The Environmental, Health,and Safety (EHS) Committeeof 3M senior management
provides input on climate andenvironmental related risks.

Board’s oversightIntegration into enterprise risk
3M continually evaluates aspects ofrisk; our analysis has not identified
all aspects of climate risk as anenterprise risk with a substantive
financial impact. Our primarycategories of enterprise risk aredetailed in our Annual Report.
Additional details on our enterpriserisk assessments can be found in theenterprise risk section of this report.
Timeframes
Shortterm

Mediumterm

Longterm

0-1 years

1-5 years

5+ years

162

3M’s Science, Technology, andSustainability (STS) Committee
assesses and advances strategic
growth areas, long-term
investments, and inspired innovation
opportunities. Committee members
as of December 31, 2018, include
Inge G. Thulin, Executive Chairmanof the Board; Michael F. Roman,
Chief Executive Officer; Nicholas
C. Gangstad, Senior Vice President
and Chief Financial Officer; John
P. Banovetz, Senior Vice President,
Research and Development andChief Technology Officer; Gayle
R.T. Schueller, Vice President andChief Sustainability Officer.

#improvinglives

3M 2019 Sustainability Reportinvolved in its development andremains increasingly engaged in the
resulting innovations and actions.
Corporate officer's oversightIn addition to members of the
STS Committee, 3M’s Senior Vice
President of Supply Chain, a direct
report to the Chief Executive
Officer, has the highest level of
direct responsibility for assessing
and managing climate-related
issues. This person will carry on
the company’s history of proactive
leadership in addressing both thechallenges and the opportunities
presented by climate change andenergy conservation.

Frequency on
Board’s agenda

Identification
and assessment

Sustainability is a topic at all levelsof our company. On an annual basis,
our Chief Technology Officer and
our Chief Sustainability Officer
report directly to the Board’s
Nominating and GovernanceCommittee on our Sustainability
efforts. In addition, throughout
2018 the STS committee met withincreasing frequency as we created
our new business strategy, known
as our Strategic Sustainability
Framework. This senior leadershipteam was highly engaged andManaging risk requires integrating
a multi-disciplinary, company-widerisk identification, assessment,
and management process.

Frequency of monitoring
3M will assess climate-related risks
at least once every six months, andmore often if a risk is considered tobe more time-sensitive. Part of theassessment will be to evaluate risks
that go beyond six years well into
the future.
Risk factors
Regulatory 3M continually
evaluates aspects of regulatory risk
during regular business throughnew product development andcontinuous business improvement.
3M’s operations are affected bynational, state, and local laws
around the world. 3M has made,and plans to continue making,necessary expenditures forcompliance with applicable laws.
3M is also involved in remediation
actions relating to environmental
matters from past operations
at certain sites. Our analysis
has not identified this climate
factor as an enterprise risk witha substantive financial impact.
Technology 3M’s five businesssegments bring together commonor related 3M technologies,
enhancing the development ofinnovative products and services
and providing for efficient sharingof business resources. We haveoperations in over 70 countries,
bringing together a combination of
our 46 unique technology platforms
to produce over 55,000 productlines in nearly every country. Anyrisks from technology would be
identified and mitigated throughour New Technology Introduction(NTI) process, New ProductIntroduction (NPI) process, andcontinuous improvement program.

Corrupt Practices Act and otheranti-bribery and anti-corruption
laws, and other matters. The
outcome of these legal proceedings
is often difficult to reliably predict.
For a more detailed review ofthis topic, see the discussionin Note 16 “Commitments andContingencies” within theNotes to Consolidated Financial
Statements in The Company’s
Annual Report to Shareholders.

This product diversity enables
3M to identify unique solutions tosolve our customers’ challenges. In
2018, 3M invested $1.82 billion in
research and development to build
upon our existing technologies
to find innovative solutions forour customers' challenges. This
unique combination of diversity andinvestment enables 3M to remainon the cutting edge of scienceand support our customers’ futureneeds as the climate changes.
Our analysis has not identified thisclimate factor as an enterprise risk
with a substantive financial impact.

Market Results are impacted by
the effects of, and changes in,worldwide economic, political,
and capital markets conditions.
3M operates in more than 70
countries and derives approximately
60 percent of its revenues fromoutside the United States. The
company’s business is subject to
global competition and geopoliticalrisks and may be adversely affectedby factors that are beyond its
control, such as slower economic
growth, disruptions in financial
markets, economic downturns,
inflation, elevated unemployment
levels, sluggish or uneven recovery,
government deficit reduction,
natural disasters, and other factors
in specific countries or regions,or in the various industries inwhich 3M operates. Our analysis

Legal The company’s future results
may be affected by various legal
and regulatory proceedings andlegal compliance risks, including
those involving product liability,
antitrust, intellectual property,
environmental, the U.S. Foreign

163

How we work

Climate and energy

has not identified this climate
factor as an enterprise risk witha substantive financial impact.

and maintaining appropriate stocksof raw materials and contingency
plans with key suppliers to assure
allocation to 3M in the event of
supply disruption. Our analysis
has not identified this climate
factor as an enterprise risk witha substantive financial impact.

Reputation Around the world,
customers rely on 3M to provide
innovative solutions to advancecompanies, enhance homes, andimprove lives. We are defined bymore than just what we make — weare defined by how we do business:the 3M Way, always making theright choices for our company andour customers, and protecting our
reputation in all we do. Our analysis
has not identified this climate
factor as an enterprise risk witha substantive financial impact.
Physical (acute and chronic) Every
year, local crisis management
teams at every 3M facility andinternational subsidiary must review
and update its Crisis Management
Plan to reflect current conditions.
It also performs a tabletop or
actual crisis response exercise.
3M Corporate Auditing andCorporate Security monitor facility
compliance with the Corporate
Crisis Management Program.
3M mitigates supply chain risks
through a variety of management
practices, including multi-sourcing
raw materials, pre-qualification ofpotential outsource manufacturers,
164

Upstream 3M depends on various
components, compounds, rawmaterials, and energy (including
oil and natural gas and theirderivatives) supplied by others forthe manufacturing of its products.
It is possible that any of its supplier
relationships could be interrupted
due to natural and other disasters
and other events, or be terminatedin the future. Risks from upstream
suppliers are identified at the
product level through the New
Product Introduction (NPI) andcontinuous improvement processes
at 3M. An on-site assessment
may be conducted, by 3M or
third party, and any deficiencies
are ultimately corrected througha Corrective Action Preventive
Action (CAPA) process. Our analysis
has not identified this climate
factor as an enterprise risk witha substantive financial impact.
Downstream Our analysis has
not identified “downstream”
as an enterprise risk with a#improvinglives

3M 2019 Sustainability Report

substantive financial impact.
Risks from downstream productuses are identified at the productlevel through the Life Cycle
Management (LCM) process at
3M, which evaluates the planned
use and disposal of 3M products
and identifies hazards and risks
associated with the use anddisposal of 3M products. Mitigationof these risks is highly diverse andproduct-specific. Our analysis
has not identified this climate
factor as an enterprise risk witha substantive financial impact.

reduce our risk from local climate
impacts on our operations.

to address these and otherphysical climate opportunities.

Accuracy Develop corporate
systems and auditing procedures

3M’s five business segments
bring together common or related
3M technologies, enhancing
the development of innovative
products and services andproviding for efficient sharingof business resources. Ouroperations bring together acombination of our 46 unique
technology platforms to produce
over 55,000 product lines, which
are sold in nearly every country.

Metrics

Transparency Report on emissions
and activities in a way that isrelevant to stakeholders

Financial risks

We believe this governance of risks
by Board committees, who share
information with the full Board,is appropriate for a diversified
technology and manufacturing
company like 3M. 3M’s 10-K,
Item 1A, outlines risk factors
applicable to the company.

At 3M, we continually evaluate ourapproach to opportunity and risk.
We believe the whole concept ofrisk appetite and tolerance is an
essential component of strategicplanning. This includes broad risk
oversight by the Board and its
committees, with committee-levelrisk analyses reported to the full
Board and executive-level internal
auditor and Chief Compliance
Officer appointed by, and reporting
directly to, the Audit Committee.
3M has operations in over 70
countries, with a regionalized
supply chain that enables more
localized and diversified productionof our products. This helps

We have established key metrics
to measure and manage climate
risk that go beyond complianceto thinking holistically about how
our operations and products
affect the world and every life init. We report on historical periods
to allow for trend analysis with aclear description of methodologies
we use to calculate or estimate
limitations and assumptions.
Principles
3M’s 2025 Sustainability Goals
and Strategic Sustainability
Framework milestones.
Relevance Clearly
define boundaries

Financial opportunities
Financial opportunities include
products and services andresource efficiency. Access todependable energy supplies andenergy efficiency directly affect
all businesses and communities.
Energy usage and climate concerns
require systemic change. 3M is adiversified technology company
providing innovative solutions

Completeness Strive to calculate
and report data coverage to 99
percent of inventory for Scope 1
and Scope 2 emissions. We willcontinue to develop and support
advances in Scope 3 methodology
Consistency Base our dataon approved methodology

2025 Goal: Improveenergy efficiency
indexed to net sales
by 30 percent.
Energy-efficiency improvements
help reduce energy use, energy
associated costs, and GHG
emissions. 3M energy management
goes beyond energy-efficiency
efforts in factories and buildings:
It is a team effort guided by 3M’s
global Corporate Energy Policy
and coordinated by the Corporate
Energy Management team, withoversight by 3M’s Corporate
Energy Manager and Engineering
Vice President, and active support
from the Chief Executive Officer.
3M has taken a broad approachto managing our energy footprint,
which includes evaluating theimpact of our new products,
manufacturing processes,
equipment, and locations, as well
as reducing the energy footprintof our existing manufacturing andadministrative locations. In addition,
165

How we work

Climate and energy

we actively share information
about our energy management
program with external stakeholders
such as suppliers, customers, andother interested organizations.

By conserving energy, reformulatingproducts, and prioritizing
opportunities, 3M has beenable to achieve industry-leading
GHG emission reductions. Other
companies are setting goals tomove closer to the achievements
we have already realized.

2025 Goal: Increase
renewable energy to
25 percent of total
electricity use.
Achieving this goal will mean
adding nearly 800,000 MWh ofrenewable energy use globally. The
primary sources of this renewableenergy will be wind and solar.

2025 Goal: Ensure
GHG emissions atleast 50 percent
below our 2002
baseline, while
growing our business.
3M is in a leadership position due
to our early actions to reduce our
GHG emissions, which started
in 2000. We are committed tocontinuing that leadership evenas we grow the company in orderto help our customers address
the issue of climate change.

166

2025 Goal:
Help our customers
reduce their GHGs
by 250 million tonsof CO2 equivalentemissions throughuse of 3M products.
While 3M has made significant
GHG emission reductions acrossour global operations, we realize we
can make far greater contributions
by helping our customers reduce
their GHG emissions through theuse of our products. For additional
information on how we work withour customers, see Our Customers.

#improvinglives

3M 2019 Sustainability Report

Our actions

Energy management,
inside and out
3M reviews its Strategic Energy
Management Plan annually toprioritize programs and meetglobal goals. The plan uses input
from stakeholders, including
manufacturing directors, plant
managers, operations employees,
and executive management.
Goals of the plan include tocontinuously improve results,
leverage engineering expertiseand advances, drive facilitylevel efficiency improvements,
maintain top management support,
and protect 3M’s reputation.
Pubic speaking engagements
and partnerships are integral
elements of the plan. In 2018, 3M
experts spoke at several energy
industry conferences, including the
Association of Energy Engineers(AEE), the Western Electricity
Coordinating Council (WECC), theU.S. Department of Energy (DOE's),
and the Better Buildings Summit.
We are also one of 30 businesses
and organizations that have formed
the Minnesota Sustainable Growth
Coalition, which is dedicated todefining and achieving a fully
realized circular economy.

A focus on energy
from naturally
replenishable sources
As part of our 2025 goal to increase
the use of renewable energy
sources, 3M continues to expand
wind energy operations. In 2018,
we entered into contracts with
two wind energy developers to
off-take the electricity from theirprojects, Gunsight Mountain andRocksprings, both located in Texas.
In 2018, the electricity output
from these two projects alone is
now 26.8 percent of 3M’s total
global electricity use, thereby
achieving the company’s 2025
renewable energy goal. With thegoals we set in 2025, we’re raising
the bar as part of our strategic
focus on empowering Science for
Circular, Climate, and Community.
See the “looking forward”
section for additional details.
Our renewable efforts don’t
stop at the corporate level. Our
facilities actively seek alternative
energy sources, including active
combined heat and power, solar,
wind, and other projects, suchas utilized excess steam. Learn
more about the actions we’vetaken at one of our combined
heat and power facilities here andsolar energy installations here.

ISO 50001 and
SEP™ certification
The internationally recognized
ISO 50001 standard, and the U.S.
Department of Energy’s (DOE's)
Superior Energy Performance(SEP™) certification program,
help 3M locations become
attuned to recognizing and seizing
opportunities to increase energy
efficiency in site operations, andmove from delivering energy
projects in a loosely organizedfashion to a structured system ofmanagement. By integrating thesystematic ISO-based frameworkof “plan-do-check-act” for the
management of energy in on-site
operations, our locations haveseen savings in energy costs
and consumption, expansionof employee engagement, andincreased visibility to the trackingof site energy performance. 3M
has been busy increasing its ISO
50001 and SEP-certified profile,with 30 locations now certified
or working toward certification
under those two programs.

Transforming theways we use andevaluate energy
The doors of collaboration wereonce again opened during the 2018
Plant Engineering Global Excellence(PEGE) & Energy Leadership
Conference. For the second year ina row, with nearly 100 attendees,
the conference was packed witha wide variety of valued subjectmatter experts and a focus on theimportance of partnerships in theachievement of our Sustainability
goals, as well as currently existing
opportunities that assure energyefficient operations at our locations.
Along with delivering thosemessages, external speakers yielded
insight on Sustainability and processcontrol from the perspective of
leaders from other industries.
Beyond this one-day summit-style
event, we also conduct monthly
web conferences for our global
network, at which we shareupcoming or changing regulatory
requirements and best practices.

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Climate and energy

From many
perspectives, aproductive year

the end of 2018, just under 70
percent of all global facilities
had completed this challenge.

Throughout the year, employees
conducted treasure hunts at
facilities to find conservation
opportunities. Ten more sites
joined in the hunt this year. Thesesites identified approximately$4.5 million (USD) in energy savings
opportunities. Several more sites
are scheduled in the future.
Evaluating new metering technology
in 2018 aided in the identificationof energy costs associated with the
manufacturing processes and allow
for better analysis of energy cost
reductions during both production
and non-production time periods.
An energy analysis tool wasdeveloped in 2018 for use by all 3M
locations. The tool is designed toquickly analyze and identify energy
projects and estimate payback
periods. It uses actual site energy
costs and weather data for analysisof energy costs in lighting, motors,
makeup air, and compressed air.
The Lighting Challenge
continued in 2018, focused on
3M locations upgrading theirlighting systems to light-emitting
diode (LED) technology. At
168

Also, energy coordinators
were named for each of four
regions: Asia Pacific, Canada,
Europe, and Latin America.

EnergyExcellenceAwardsThe Energy Excellence Awards
honors individuals and teams
that incorporate the goals of
the Corporate Energy Programin engineering projects. The
nominated projects and individuals
actively demonstrate theircommitment to include energy
efficiency in the design ofprojects, in equipment selection,or in the use of alternative energy
supplies. The award is one ofglobal recognition within the 3M
Engineering community. This year,
we saw 29 project and individualaward nominations total, fromnine countries globally. In May
2018, three awards were given
at the 2018 Engineering Awards
ceremony in St. Paul, Minnesota:#improvinglives

3M 2019 Sustainability Report

3M Midway,
Tennessee, U.S.

3M Gendorf,
Germany

Global energy use
Globalenergy use
MMBtu

Steve White, Amy Powell, Dennis
Shipley, Charles Shipley, Richard
Fox, and Johnny Ramey. The
Midway team chose to attack
energy efficiency indirectly. By
focusing on process improvements,
they were able to significantly
increase the size of each of theirfurnace batch runs, withouta corresponding increase inelectricity input. Fewer batch runs
also translated into a decreasein landfill scrap associatedwith each furnace load.

Thomas Hoelzlwimmer,
process engineer. 3M Gendorf
performed simple optimizationof the control concept for its
central cooling compressor
and, in doing so, reduced theelectrical power consumption at
its facility by 5 percent. This, inturn, produced energy savingsof $100,000 (USD) per year.

30,000,000

3M London,
Ontario, Canada
Steve Doyle, senior electrical
technologist. Utilizing ISO50001
processes, site monitoring
systems, current technology
platforms, and the knowledgeof its workforce, London Oxford
implemented projects at every
production and business centerat their facility. Among them:
combined heat and power
installation, boiler automation,
compressor upgrades andsequencing, lab heating ventilation
and air conditioning (HVAC)
cutbacks, and LED upgrades.

MMBtu

20,000,000

10,000,000

02018 Plant Energy
Award
At the conclusion of each year, theCorporate Energy Management
team recognizes the top facilities
in our program for their resultsin energy metrics. To qualify,
these facilities must demonstratean active culture of energy
management practices on-site,
as evidenced by their delivered
project savings, their energy
team assessment score, and theresulting improved efficiency
in energy intensity on-site.
Eight platinum awards, 12 gold
awards, and eight silver awards
were presented to facilities withthe most impressive results.

2005

2010

2014

2015

2016

2017

2018

Global energy use

Global energy use
MMBtu
per MM $USD net sales
MMBtu per MM $USD net sales

1,400
1,200
1,000
800
600
400
200
0
2005

2010

2014

2015

2016

2017

2018

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Climate and energy#improvinglives

3M 2019 Sustainability Report

Greenhouse gas emissions,Greenhouseemissions,
Scope 1 andScopegas
1 and
Scope
2Scope 2
Million metric tons CO2 equivalents, absolute

Million metric tons CO2 equivalents, absolute
20
18
16
14
12
10
8
6

Direct (Scope 1) andindirect (Scope 2)
greenhousegas emissions
Since 2002, 3M has reduced
Scope 1 GHG emissions by 71.5
percent, providing a direct andimmediate reduction in our impact
on the environment. During thissame timeframe, we have achieved
a 63.7 percent reduction inabsolute Scope 1 and 2 locationbased GHG emissions. In 2018, our
Scope 1 emission did increase. Thisis due to an increase in demandfor products with high emission
profiles. We are actively working
on projects to reduce the emission
profiles of these product lines andour commitment to innovate todecarbonize industry, accelerate
global climate solutions and improve
our environmental footprint. Resultsof these efforts will be included inour 2020 Sustainability Report.
Since 2002, the 3M EHS
Laboratory has calculated 3M's
GHG inventory in accordancewith the World Resources Institute(WRI) / World Business Council
for Sustainable Development(WBCSD) GHG Protocol Corporate
Greenhouse Gas Accounting
and Reporting Standard. The 3M
170

4

EHS Laboratory maintains an
accreditation to ANSI/ISO/IEC
17025 through A2LA — a signatory
to the International Laboratory
Accreditation Cooperation Mutual
Recognition Arrangement (ILAC
MRA). Although it is not possible
to put 3M’s GHG inventory
methodology on the lab’s scopeof accreditation, our calculation
methodology has been improvedby incorporating several quality
system elements from ANSI/ISO/
IEC 17025 Standard, including:• Defined responsibilities andinterrelationships 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

updated as needed to agree withcurrent calculation methodologies.
However, whenever a methodology
change is implemented, 3M will,
wherever possible, recalculate
prior year’s GHG inventories toassure that past and current-year
GHG inventories are comparable.
Where this is not possible, 3M
will either call this out or assurethat the difference is not material.
These quality system elements andprocedures coupled with a robustinternal and third-party review
of our emissions help assure that
3M’s GHG inventory is aligned withthe core principles of relevance,completeness, consistency,
accuracy, and transparency. GHG
emission reductions are achieved
through a variety of methods:
improving process and equipment
efficiency, upgrading equipment,
reducing our demand for energyuse, increasing our use of renewableenergy, and implementing andmaintaining pollution control
technologies. These methods, andmore, are integral to the company’s
overall success and assist us withthe challenge of helping to address
global climate change concerns.

2
0
2002

2014

Scope 1 GHG emissions

2015

2016

2017

2018

Scope 2 location-based GHG emissions

For methodology, please refer to the about report section: base year and other adjustments,
and greenhouse gas metric table.

Indexed greenhouse gas emissions,
Scope
1 and
Scope
21 and Scope 2
Indexedgreenhousegas emissions,
Scope

Millionmetrictons CO₂
equivalents
per MM $USD
sales
Millionmetrictons
CO2 equivalents
pernetMM$USD net sales
1200
1000
800
600
400
200
0
2002

2014

Indexed Scope 1
GHG emissions

2015

2016

2017

2018

Indexed Scope 2
location-based GHG emissions

For methodology, please refer to the about report section:base year and other adjustments, and greenhouse gas metric table.

Every year, 3M calculates GHG
inventory according to approved
internal procedures that are
171

How we work

Climate and energy

GHG emissions
attributable toour suppliers andcustomers (Scope 3)

Evaluating customer
GHG emissions
reductions

3M has been developing our Scope
3 GHG emissions inventory since
the publishing of the WRI/WBCSD
GHG Protocol Corporate Value
Chain (Scope 3) Accounting andReporting Standard in September
2011. We place a high value on
decision making based on soundscience. When the complexity ofthe supply chain does not allow for
direct calculation, an input/output
model calculation method is used.
We continually evaluate ourmethodology and auditing practices
to assure meaningful, consistent,
and accurate comparison ofemissions over time. At this time,a base year has not yet been
established for Scope 3 GHG
emissions; see the looking forward
section for additional information.

172

To track progress towards our
2025 GHG customer goal, 3M
has a process in place to develop
reasonable estimates for avoided
emissions associated with use of
select 3M products. This estimation
procedure is based on the ISO
14064-2 standard for determining
GHG emissions reductions. It
provides a framework for theestimation of emissions from the3M product scenario (also referred
to as the “project scenario”) in
relation to a baseline scenario.
We start by defining the boundaryof the 3M product scenario as
extraction from nature throughthe end of the product use phase(product end-of-life or disposal
is included where reliable
information is available). The GHG
emissions for this scenario arethen estimated using high-level
estimates and average data (forexample, manufacturing emissions
may be determined based on the
average energy use per poundof all products produced at a
manufacturing location, rather
than determining the emissions

3M 2019 Sustainability Reportthrough detailed calculations using
product-specific information).
The same boundary is then used forthe estimation of GHG emissions
for the baseline scenario. Because
the data sources may be different
than the 3M product scenario, we
apply conservative assumptions
as needed, where conservativeis defined as a choice that resultsin the minimum GHG emissions
for the baseline scenario. For
example, if emissions data is notavailable for the production of
an intermediate chemical in thebaseline scenario, we assume theemissions to be zero. In some cases,
there is no equivalent to the 3M
product. The baseline scenario
is the absence of the 3M productentirely. The result is a comparison
that conservatively estimates thepotential impact of the 3M product.
Due to the estimated nature of thedata used, the uncertainty for thesestudies is plus or minus 50 percent,which approximates data of fair togood quality as defined in the WRI/WBCSD Product Life Cycle andAccounting Standard Quantitative
Inventory Uncertainty Guide.
According to our calculations, in2018 alone our customers avoided
emitting nearly 15 million metrictons CO2 equivalents through useof select 3M product platforms as
calculated in accordance with ISO
14064-2 and 3M standard operatingprocedures. Since 2015, this is over
41 million metric tons avoided CO₂
equivalent emissions through use of
select 3M product platforms. Thisavoidance represents only a portionof our product portfolio. Products
including films, fluids, and foodsafety, are a few examples of theselected products included in thisevaluation. In the future, the list will
likely expand as a result of the new
Sustainability Value Commitment.

#improvinglives

Air quality
management
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 volatileorganic compounds (VOCs)
from many of our manufacturing
processes. Because of this, manyof our locations require permits
with rigorous VOC tracking
requirements. Even where tracking
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.

pollutants, which are listed on
many environmental permits for
specific facility operations, aretracked and reported externallywhere required by federal, state,
or local regulations for individual
locations. 3M internally tracks
all fuel usage and calculates the
combustion emission rates using
accepted emission factors.

Main VOC bysource type
• 3M’s VOC emissions are primarily
attributed to coating lines• Reactors and mixing are alsosignificant sources of VOC emissions

VOC by location• 88 percent of our locations emit
less than 100 tons per year VOC• 31 percent of our locations emit
less than 1 ton per year VOC

For many 3M manufacturing
processes, nitrogen oxides (NOx),sulfur dioxide (SO₂), carbon
monoxide (CO), hazardous air
pollutants (HAPs), persistentorganic pollutants (POPs), andparticulate matter (PM) are emitted
as products of combustion. These
173

Climate and energy

3M 2019 Sustainability Report

Implementing
and maintaining
pollution control

Global volatile organic compound(VOC) emissions
Global volatile organic compound (VOC) emissions

Ozone depleting
substances

3M has made significant progressin reducing air emissions — at thesource and by improving process
efficiencies. Where emissions
cannot be reduced within theprocess, 3M installs and maintains
air emission control equipment
as required by federal, state, andlocal regulations. We evaluate all
equipment options, select thosethat are the most environmentallyeffective and cost-efficient, andstrive to properly operate emission
control equipment. Technologies
include thermal oxidization, solvent
recovery, carbon adsorption,
biofiltration, electrostatic
precipitators, baghouses,
scrubbers, and cyclones.

0.35#improvinglivesLo
fo okirw ng
ard

How we work

174

Metricper$USD
MMnet$USD
Metrictonstons
per MM
sales net sales

0.30
0.25
0.20
0.15
0.10
0.05
0.00
2005

2010

2014

2015

2016

2017

2018

The Montreal Protocol is the firstworldwide agreement designed
to protect human health andthe environment against theadverse effects of the depletionof the stratospheric ozone
layer. The agreement identifies
the list of ozone depleting
substances (ODS) that are
targeted for control practices,
reductions, or total phaseouts andprovides a phaseout schedule.
In addition, some countries
have established regulations
regarding the management ofrefrigeration appliances.
3M has set forth requirements inorder to provide a framework for
how 3M operations are to manage
their refrigeration appliances
containing ODS in the context ofapplicable international protocols,
local regulations, and current
and future economic impacts.
These requirements include
conformance to the Montreal
Protocol when applicable.

In the coming year, 3M will becharting the pathway to 100
percent renewable energy.
Specifically, we will evaluate what
will be required to improve all
aspects of energy efficiency, whatorganizations can help us move toa total renewable energy portfolio,
and what agreements with utility
companies can help us reach ourultimate destination. For updates,
and to learn more about ourongoing work on the 3M Strategic
Sustainability Framework, go here.

establishment of a science-basedtarget. Calculating Scope 3
Categories 9-12 is a challenging
task to complete. Our 55,000plus product lines are heavily
diversified across a large variety
of use cases. We are working toovercome this challenge while
maintaining the core principlesof the GHG inventory: relevance,completeness, consistency,
accuracy, and transparency.

Regarding supplier and customer
emissions, we are actively working
toward developing methodologies
around Scope 3 Categories 9(downstream transportation anddistribution), 10 (processing ofsold products), 11 (use of soldproducts), and 12 (end-of-life
treatment of sold product) tobetter understand opportunities
to reduce our emissions, andto potentially consider the175How we work

Suppliers

3M 2019 Sustainability Report#improvinglives

Suppliers

Sustainability is a journey
we take with everyone
in our supply chain.
Ourcommitment
At each step in the supply chain,
there are benefits (like employment
and community-building) as well as
the potential for negative impacts(like pollution or unsafe or unfair
labor practices). Our commitment
is to maximize the positives andmitigate the potential negatives byaligning our supplier expectations
with our own corporate values.
We expect our suppliers to
be transparent about theirenvironmental and social practices,
provide improvement ideas, andwork with us to transform ourshared supply chain when needed.
We actively verify our new andexisting suppliers’ performanceagainst our expectations on arisk-prioritized basis, using ourDue Diligence Management
System, which is modeled
after the Organization for
Economic Co-operation andDevelopment (OECD) Guidelines
for Multinational Enterprises.
Our Due Diligence Management
System consists of the following
elements, which aid with ourcontinuous improvement efforts.

3M supply chain
Due Diligence Management System
ValuesTransparency

Transformation

Verification

Reportestablish strong
policies andmanagement
systems

identify andassess risks
in thesupply chain

design andimplementa strategy torespond to
identified risks

audit
supply chaindue-diligencereport on
supply chaindue-diligence
activities

176

Strong policiesaligned with
our values
The 3M Supplier Responsibility
Code (SRC) outlines 3M’s
foundational social andenvironmental expectations in thefollowing areas:• Labor: Requirements align with the
3M Human Rights Policy and include
important concepts like freely chosen
employment (no forced, bonded,or trafficked labor), restrictions on
working age (no child labor), andappropriate working hours andwages. Setting these expectations
helps assure our suppliers’ actions
will reflect 3M’s values on humanrights as well as the values underlying
the International Labor Organization(ILO) and laws such as the California
Transparency in Supply Chains
Act, the United Kingdom Modern
Slavery Act, and the U.S. Federal
Acquisition Regulations (FAR) on
forced labor and human trafficking.

To learn more about these topics,see our human rights section• Environment, health, andsafety: We expect our suppliers
to care as much about thesafety of their workers and theircommunities as 3M does, and to
implement proper procedures
and controls to protect them• Ethics: Expectations align to the
3M Code of Conduct and holdour suppliers to the same highstandards of honesty and integrity.
Suppliers must prohibit any formof bribery and corruption, andprevent conflicts of interest• Management systems: We
expect our suppliers to establish
processes 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 for sustainable
and responsible operations andaligns with the 10 Principles of theUnited Nations Global Compact,of which 3M is a signatory. The
SRC is also materially consistent
with the Code of Conduct of the
Responsible Business Alliance (RBA).

The SRC, as with our previous 3M
Supply Chain Policies, establishes
3M’s expectations for new andexisting suppliers anywhere in theworld and for any supplied material
or service. Our new supplier vetting
process includes review of the SRC
expectations and confirmationthat their programs and practices
as well as their subcontractors
involved in the supply of products
and/or services conform tostandards consistent with the
SRC. Our contract agreements
have included expectations fromour Supply Chain Policies and are
now being updated to phase in andincorporate the SRC expectations.
We expect our suppliers toestablish and implement their own
relevant policies and programsin alignment with this SRC andto enforce these expectations
with their own suppliers, thereby
propagating our high Sustainability
standards up our supply chains.
3M’s Vice President of Strategic
Sourcing and Packaging
Solutions is accountable for 3M’s
Responsible Sourcing program.
Executive leaders from Supply
Chain, Compliance & BusinessConduct, Strategic Sourcing,
Legal, Sustainability, Human
Resources, and Environmental,

Health, and Safety (EHS) are
updated at least twice a year, andsourcing leadership quarterly, on
the program’s status. Both groups
have the opportunity to provide
input on the various program
activities. Sustainability-related
topics, along with supply chain,
are discussed by the Science,
Technology, and Sustainability(STS) Committee and taken up
annually as an agenda item for the
3M Board of Directors, as required.

Supplier risk
assessment andsupply chaintransparency
In addition to full compliancewith all applicable environmental
laws, we expect our suppliers
to integrate environmental
responsibility into their operations.
Suppliers should work to minimize
adverse effects on the community,
environment, and natural
resources while safeguarding
the health and safety of workers
and the public. Additional
information can be found: here.
Our general supplier performanceverification process begins witha self-assessment questionnaire(SAQ). The SAQ helps 3M
177

How we work

Suppliers

understand supplier programs anddetermine whether they conformto 3M expectations. An on-site
assessment may be conducted,
by 3M or a third party, to identify
any deficiencies, which areultimately addressed through an
SRC Corrective Action Preventive
Action (CAPA) process. CAPA may
include announced or unannounced
follow-up assessments.

and specific formal expectations todrive more sustainable, responsible
practices. This includes our use ofcertain minerals with the potential
to be sourced from conflict areas,
our use of timber-based products
and other plant materials (pulp
and paper), and all new suppliersin the higher-risk countries, suchas in the Asia Pacific region.

If the assessment identifies gaps
or findings, and if a supplier is notable or willing to resolve them, the
CAPA would escalate to a corporate
Supplier Corrective Action Request(SCAR). This assures appropriate
resolution and conformance with
3M’s requirements. If a supplieris unwilling to work with 3M on
the identified gaps or unable
to close the issues within areasonable timeframe, alternative
actions are determined with across-functional business team toelevate and resolve the situation.

Additional
expectations
for higher-risk
supply chains
In addition to the global SRC
expectations for all suppliers,
certain areas warrant additional
178

Focus: conflictminerals
Another prioritized area in our
raw material supply networkis the responsible sourcing ofminerals. 3M deplores the violence
and inhumane treatment thathas 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 suchregions. Additional information
can be found in our Conflict
Mineral Policy, and in Supplier
Direct, Supplier Requirements.

Focus: pulp and paper
3M has prioritized pulp and paper
products as an area that warrants
additional formal expectations#improvinglives

3M 2019 Sustainability Reportbecause of potential environmental
risks, such as deforestation andhabitat loss; potential human rights
issues, such as infringement ofindigenous peoples’ rights; andpotential unsafe labor practices.
As a global paper purchaser andSustainability leader, 3M is wellpositioned to positively influence
practices throughout the forest
products supply chain. We adopted
our Pulp and Paper Sourcing
Policy in the spring of 2015 to
set standards of excellence forour suppliers and their suppliers
through all tiers of supply from theforest. Additional information on
our commitment can be found on
our Sustainable Forestry website.

Supplier diversity
3M is committed to diversity andinclusion, which involves working
with small businesses. We strongly
encourage using diverse suppliers
across our sourcing organization.
We back up our commitment
through initiatives that directly seekout diverse companies to support
3M’s business needs. Equallyimportant, we recognize thatdiversity is a core value that helps
strengthen our competitivenessand provides opportunities for
new ideas and fresh perspectives.

3M has a long-standing
commitment to sustainablebusiness practices and supporting
the economic success of ourcommunities, including working
with both diverse and smallbusiness suppliers. 3M considers adiverse supplier any supplier who
qualifies for one or more of thefollowing classifications: MinorityOwned Business; Women-Owned
Business; and Small Business,
including Small Disadvantaged,
HUBZone, Woman, Veteran orService-Disabled Veteran.
Our diversity program is aboutcollaboration, communication, andactive participation. Our supply
chain organization is encouraged
to actively participate in diversity
outreach events. In 2018, 3M
employees attended the Smalland Disadvantaged Business
Opportunity Council (SADBOC)
Procurement Fair to identify
additional diverse suppliers. We
hosted two diversity events: theSmall Business Liaison Officer
Conference at 3M’s corporate
facility and an outreach effort
for small and diverse suppliers at
3M’s Washington, D.C., facility.

3M proactively reaches out tovarious organizations, including
the National Minority Supplier
Development Council (NMSDC),
Women’s Business Enterprise
National Council (WBENC),
Metropolitan Economic
Development Association (MEDA),
Small Business Administration (SBA),
and others. We also have a supplierportal that allows businesses
to provide a portfolio of theircapabilities, which is distributed
to 3M’s sourcing organization.

• Find “new-to-3M” diverse suppliers

3M establishes goals and regularly
tracks the dollar value of goods
and services purchased from small
businesses and diverse suppliersin concert with goals set annuallywith the U.S. federal government as
part of our subcontracting plan forfederal government contracting.

We remain committed tosupporting small businesses anddiverse suppliers by continuing
to reassess elements of ourapproach, working across theindustry to assure best practices.

To achieve our goals, 3M has
implemented a four-partstrategy aimed to:• Further disrupt the status quo byworking to move some of our Tier
2 spending to Tier 1 and focusing
on diverse suppliers in our request
for proposal (RFP) activity

In 2018, 3M spending with small
businesses represented 26 percent,of which 4.6 percent were diverse
suppliers. Our progress is routinely
communicated to leadership
across the organization.

More on our supplier diversity
program can be found in
the partners and suppliers
diversity website, here.

• Increase our spending withcurrent diverse suppliers byreviewing our existing diverse
suppliers by diversity category• Identify additional diverse suppliersin our existing supply base byreviewing our top non-diverse
suppliers by spending category
179How we work

Our 2025 Goal:
Drive supply chain
Sustainability throughtargeted raw material
traceability andsupplier performanceassurance.
We understand that our
Sustainability impacts extend
beyond our own operations. Bypurchasing raw materials andservices from small and large
companies all over the world, weparticipate in a global, complex
supply chain. And it doesn’tstop there. Our suppliers havetheir own suppliers, extending
back to the original sourceof each material we use.

Our actions

Suppliers

Supplier locations

Supplier locations#improvinglives

3M 2019 Sustainability Report

Supplier spend by region

Supplier spend by region2018 percentage

2018 percentage
50
45
40
35
30
25
20
15
10
5
0
2014
Asia Pacific2015
Canada2016
Europe, Middle East, Africa

2017

2018

Latin America

United States

The SRC (Supplier Responsibility
Code) Steering Team provided
training in 2018 to more than 200
assessors globally to assure adetailed understanding of 3M’s
SRC expectations, processes, andsupporting tools. The training
covered each of the elementsof the SRC, including labor andhuman rights, EHS, ethics, andmanagement systems requirements.
In addition, training materials weremade available on 3M’s business
partners website for suppliers
to expand their knowledge insuch topics as global bribery andcorruption awareness; eliminating
forced labor, slavery, and humantrafficking from the global supply
chain; and preventing corruption;and mitigating compliance risk for
distributors and business partners.

3M works with a broad, complex
supply chain, consisting ofover 78,000 suppliers in over
300 subcategories in 110
countries around the world.

180

181

How we work

Suppliers

Responding to risks,transforming our
supply chains

Verifying our supplierperformance

We are constantly managing
changes in supply markets bothwhere there is an opportunity to
extract value and defensively where
necessary to mitigate risk andsecure supply. As described earlier,
we focus efforts on the salientissues in categories where humanrights and environmental risks are
the greatest. More broadly, we
conduct robust risk prioritization
to determine other suppliers wewill engage via an assessment
against our SRC, which includes
policy and contract conformance.
3M has historically used industry
indices to identify higher-risk
supply chains and has adopted
the use of a data-driven software
solution in conjunction withindustry information and Lean Six
Sigma (LSS) tools to optimize andstrengthen its risk management
processes. The criteria matrix
helps rank global suppliers, using
multiple factors such as geographic,
category, and business-criticalelements to determine whereassessments should be performed.

182#improvinglives

3M 2019 Sustainability Report

In the past eight years, over 6,300
self-assessments or on-site auditsof suppliers have been conductedin prioritized countries. Alongthe way, our assessment process
has become more evolved andmore comprehensive. In 2018,
3M completed 550 assessments,
which included the comprehensive
RBA framework and expandedfrom 10 to 18 countries, covering
every region of the world.

Although applicable to all suppliers,
our supply chain risk assessment
process focuses on prioritizedsuppliers, each of which mustcomplete an SAQ and/or be
subject to an on-site assessment
as specified in our SRC.

Cumulative supplier assessments, since 2008
Cumulative
supplier assessments, since 2008
Total number
Total number
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
2014

2015

2016

2017

In 2018, we updated our assessment progress andincreased the scope of each assessment.

2018

Forced labor andhuman trafficking
3M’s efforts to eradicate forcedlabor and human trafficking
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 disclosurescommunicate our commitment
to legal and ethical practices
through our membership in the
United Nations Global Compact,
in implementing 3M’s Code of
Conduct, and by working withothers to abolish human rights
atrocities, especially as it relates
to human trafficking, forced labor,
modern slavery, and other related
crimes. 3M is committed to doing
our part to eradicate humantrafficking in any form from theglobal supply chain. We have robust
policies and systems in place tocontrol these practices in our own
operations and with our suppliers.
As 3M sets a high bar for itself
regarding labor and employment,
it expects the same from its
suppliers as articulated in the SRC.

China prison labor
allegations
In 2018, 3M launched aninvestigation into labor practicesof suppliers in China based onallegations made in the Financial
Times. We completed a document
and record review of 3M suppliersin China and found no evidenceof suppliers using prison labor forthe manufacturing or packagingof 3M products. These findings
were confirmed by an independent
third-party onsite audit ofsuppliers based near the prison.

Conflict
minerals
actions
Forging ahead
with continuous
improvement
The 3M Conflict Minerals
program, now in its sixth year,
has gone through continuous
improvement, based on learnings
from past campaigns and externalbenchmarking that provided
ways to optimize and increase theeffectiveness of program activities.

As part of our responsible
sourcing expectations, in 2018
3M refreshed its Conflict Minerals
Policy and 3TG-related objectives
for our suppliers. 3M expects its
suppliers to adopt a similar policy
and due-diligence management
system and require the sameof their suppliers to proliferate
responsible sourcing practices
throughout the supply chain.
In addition, 3M is an active member
of Responsible Mineral Initiative(RMI), which develops tools andguidance for companies regarding
conflict minerals. Our membership
in RMI and various sub-teams suchas the Smelter Engagement Team
(SET), Due Diligence Practice
Team, and Plenary Team enable
3M to be involved in special
activities like the Due Diligence
White Paper update. The teams
provide useful venues for 3M tooffer its ideas and learn from othermember companies as we all work
together on this important journeyof transforming our supply chains.
With the evolution of conflictmineral programs, 3M partneredwith a third party to manage our2018 program outreach and datacollection. The third-party platform
automates the collection, validation,and centralization of data to support
183

How we work

Suppliers

3M’s responsible minerals sourcing
program. Suppliers entering
the portal are linked to training
resources with access to topics
and webinars such as Responsible
Minerals Trends and Best Practices,
Global Conflict Minerals, andPractical Tips to Enhance Your
Conflict Minerals Program.

Conflict mineral supply
chain traceability

3M’s membership in RMI opensalignment to emerging risk andassessments in raw materials supply
chains utilizing the Risk Readiness
Assessment (RRA) tool. RRA is thebasis for corporate assessmentsof material risks in 3TG supply
chains and in particular withsocial and environmental risks.
The EU Conflict Minerals Regulation,
which takes effect in 2021, will
expect companies to take a wider
view of their sourcing practices.
When it takes effect, regions
beyond the Democratic Republicof the Congo explicitly will
come into focus of our Conflict
Minerals Program. 3M’s SRC
covers foundational expectations
for our suppliers by taking aholistic approach to supply
chain due diligence in areas oflabor, environmental health andsafety, ethics, and management.

184#improvinglives

3M 2019 Sustainability Report2018 percentage

Commission filings found on
3M Supplier Direct, Supplier
Responsibility Expectations.

Pulp and
paper actions

RMAP conformant

81%

RMAP active

2%

RMAP not enrolled

15%

Based on Responsible Minerals
Assurance Policy (RMAP)

Members of our European
Government Affairs team havebeen closely aligned with industry
and government to understand thescope, impacts, and timing of the
new European regulation. The teamhas proactively assessed potential
applicability so 3M will be best
prepared to implement the new rule.
Additional information canbe found in the 3M Conflict
Minerals Securities and Exchange

As part of our regular review
process, in 2018 we republished
our Pulp and Paper Sourcing Policythat was published in 2015 and the
supporting Policy Conformance
Guidance Document. Changes
to the policy included updating
guidance links and resources, andadding details and clarification
where beneficial. We also addedtranslated versions of the policy
and Policy Performance GuidanceDocument for three additional
languages including Korean,
Spanish, and Russian, bringing
the total number of translated
versions to seven languages.

Pulp and paper policy
implementation on
the ground
Throughout our policy
implementation, we have seen
several examples of marked
improvements in responsible pulp
and paper sourcing practices

as a result of our engagementwith suppliers. These include:• Meeting with suppliers’ senior
corporate executives on theimportance of assuring responsible
and sustainable supply chains, andagreeing to collaborate on that goal

Pulp and paper supply
chain traceability
2018 percentage• Suppliers establishing new
positions within their companies• Significant increases in supply chain
traceability and transparency• Increased engagementby our suppliers with their
upstream supply chain

Through an online survey, 3M
suppliers can provide complete
supply chain information all theway to the forest sources, or theycan easily forward parts of theonline survey to their suppliers(paper or pulp mills, for example)
for completion. We aim to workwith suppliers and peer companies
to document as much of our global
paper supply chain as possible,
to amplify our efforts to mitigate
risks, improve efficiencies, anddrive sustainable practices
throughout the supply chain.
We partner with a third-party
provider to help us review

Traceable to forest source 36%
or 100% recycled
Traceable to pulp mill

30%

Traceable to paper mill21%

Not yet engaged or
traceable

13%

information we obtain from our
supplier surveys and combinethat with geography and industryspecific knowledge to conduct“desktop” risk assessments ofour supply chains. We use theseassessments to prioritize further
engagement to learn more about
our suppliers’ responsible sourcing
and sustainable 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 notlimit this engagement to our direct
suppliers. In fact, as appropriate,
we will work directly with indirect(Tier 2 and Tier 3) suppliers on
policy conformance verification
work, with a goal of involving ourdirect (Tier 1) supplier(s) in these
activities whenever possible.
With the help of our third-party
provider, we have conducted 12
field assessments so far acrossall regions, covering more than
14 million hectares. Four of those
assessments were of Tier 2 pulp
mills, which were also attended bya Tier 1 supplier. 3M’s participation
on supplier field assessments with
our third-party provider helps
us to understand firsthand thechallenges faced by pulp and paper
companies and forest managers
around the world. This in turnenables us to actively participate indeveloping solutions and advancing
conversations about responsible
sourcing and sustainable forestry.
3M and our third-party provider
are committed to working with
suppliers to promote protectionof high conservation values in the185

3M 2019 Sustainability Report

Suppliers#improvinglivesLo
fo okirw ng
ard

How we work

Canadian Great Northern Forest(boreal forest) and the ability of
the forests to provide wildlife
habitat, ecosystem services, andnatural beauty for generations tocome. This is accomplished throughfield assessments of supplier
practices, deep engagement with
forest managers and scientists,
and a focus on identifying
innovative management practices.
To maximize the likelihood of
success, these actions require
collaboration with industry,
indigenous peoples and local
communities, with the aim ofrestoring balance to the relationshipbetween people and nature.
Each assessment results in acomprehensive report detailing the
supplier’s performance against ourpolicy requirements, and action
items to address any performancegaps. We expect each supplier
to develop corrective actionplans with reasonable timelines
and continue to collaborate with
3M on resolution of identified
opportunities. More informationon these assessments can befound in our Pulp and Paper
Sourcing Policy progress reports.

186

Conservation in the
Carolinas
3M helped launch the Carolinas
Working Forest Conservation
Collaborative (CWFCC) along with
the American Forest Foundation,
International Paper, and The
Procter & Gamble Company in 2017.

Through 2018, family woodlandowners in the U.S. Coastal Carolinas
Plain were directly engaged,
new components were added
to the project, such as forester
trainings, and much broader
partnerships were built thanoriginally anticipated. All of this iswith the intent of accomplishing
the following objectives:

Pulp and paper assessments• Increase awareness andunderstanding of the importanceof 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• Work with at least 450 landowners
across 36,500 acres in the
project counties to connect themwith technical assistance andresources to get them started
in forest management• Engage at least 160 woodlandowners within the project area
to enhance, restore, or expand
bottomland hardwood forestsand quality habitat for at-risk
species on at least 13,000 acres

Pulp and paper assessments• Certify at least 120 landowners
in a recognized forest
certification standard

Collaboration
for change
Completed

PlannedCompleted

Planned

3M Brazil is a signatory to The
National Pact to Eradicate
Slave Labor and has now joined
InPACTO — the Institute for
the National Pact — a tradeassociation focused exclusively
on collaborative efforts among

members, including 3M, committed
to the goals of the National Pact.

Supplier recognition
Our Supplier Recognition
program seeks to recognize thoseoutstanding suppliers that help
us succeed in accomplishing
our Vision of 3M technology
advancing every company, 3M
products enhancing every
home, and 3M innovation
improving every life.
Each year 3M sourcing
professionals nominate exemplary
suppliers to be recognized forworld-class performance, basedon strategic support, contract
compliance, actions taken to
improve 3M’s competitiveness,and overall supplier performance.
In 2018, 3M recognized over 30
suppliers among thousands in
its global supply base for worldclass performance in providing
products and/or product. They
were honored at regional eventsin Canada, EMEA, Latin America,
and the U.S., as well as local
programs in Japan and Korea.

3M values continuous improvement
and is conducting a Lean Six Sigma
project to improve the efficiency
and effectiveness of the SRC
process and toolsets. The project is
global in scope and will positively
impact the methodology, resources,
and results of the activity.
We recognize there are risks
in the supply chains of many
materials. Through strategic
partnerships, we are continuing
to increase our ability to mitigate
risks through collaboration. For
example, RMI is actively working
on formulating risk mitigation tools
for the cobalt industry. We will
increase efforts with providersof pulp and paper, understanding
and evaluating conformance with
3M’s environmental and social
expectations, which will include
field visits. 3M is committed to
expanding our due-diligence efforts
for higher-risk materials to further
mitigate risk to our business andadvance responsible supply chains.

Learn more about the Supplierof the Year Award here.

187

Introduction

w W
e h
cr at
ea
te

What we Create

188

3M 2019 Sustainability Report#improvinglives

Introduction

190

Our customers

192

Innovation management

198

Our products

210

189

What we create

Introduction

Our customers’
challenges
are ourchallenges.

3M 2019 Sustainability Report

Using our 46 technology platforms
and collaborative culture, weinvent products that help ourcustomers solve the issues they
are facing in many areas, including
health, safety, and energy.
We are not stopping there. We
have established aggressive goals
for 2025, ranging from investing insustainable materials and energy
efficiency, to community-wide
approaches to water management
and helping our customers reduce
their greenhouse gas emissions. We
have also set 2025 goals aroundbuilding a diverse workforce andeducating individuals on worker
and patient safety in healthcare and industrial settings.

#improvinglives

Not only that, but we have madesuch significant progress on the2025 goals that we’re raising
the bar. This includes our new
product goal as an example of
the aggressive targets we’ll besetting in the coming months aspart of our strategic focus onempowering Science for Circular,
Climate, and Community.

Our new product goal is
a commitment that every
new product entering thedevelopment process in2019 is required to upholda Sustainability Value
Commitment.
This drives not only continued
focus on social and environmental
stewardship, but ideation on
better ways to innovate forgreater positive societal impact.

190

191

What we create

Our customers

3M 2019 Sustainability Report#improvinglives

Ourcustomers

Customers are at thecenter of 3M decision making.
Ourcommitment
Whether it’s technology,
manufacturing, global capabilities,or brand, we are committed toconnecting our fundamental
strengths to customers. We
engage them. We delve into theirprocesses, their problems, andtheir promises to their customers.
We bring our technology to them,along with a deep domain expertise,
and we deepen it further when
we work side by side with them.
In the process, we not only meettheir expressed needs — we areoften able to identify and address
unarticulated needs. In both cases,
we create solutions for themand, at the same time, innovative
growth platforms for 3M.
Additional details can befound in our innovation
management section: here.

192

Creating
competitive
advantages forcustomers, andfor 3M
At 3M, we talk about how manyof our products are specified or
regulated. Specified: designed
for the customer. Regulated:meeting specific performanceand requirements. Working inboth categories carries us throughmultiple commerce channels,
distribution models, direct models,retail models, and, increasingly,
e-commerce. Throughout, we
maintain a customer-first focus,
making sure we're in a position todeliver value where they want it,
when they want it, how they want it.

Building Sustainability
into all new products
Where many companies viewthe topic of Sustainability inproduct development as achallenge, at 3M we have taken
an aggressive approach, working
to identify and understand future
Sustainability needs, and to
expand our portfolio of productswith Sustainability advantages.
By embedding Sustainability into
our R&D process, our brands, andthe mindset of our suppliers andcustomers, we’re able to move 3M’s
growth to new levels and advanceour commitment to improving ourbusiness, our planet, and every
life. Additional information can befound in Our Products and 3M’s
Sustainability Value Commitment.

2025 Goal: Invest
to develop moresustainable materials
and products to help
our customers reach
their environmental
goals.
We recognize some of our greatest
positive impact can be realized byhelping our customers improvetheir environmental footprint. For
that reason, an increased focus
on delivering more sustainable
materials and components
is core to our innovation andSustainability strategy.

2025 Goal: Provide
training to five million
people globally on
worker and patient
safety.
We will continue to support
empowerment and enrichment
for global health and safety issues
through our commitment to improve
the health and safety of people
worldwide. To measure progressagainst this goal, we will track thenumber of training experiencesdelivered by our Health Care andPersonal Safety Academies.

Our actions
We have four strategic priorities
that deliver value for ourcustomers: portfolio management,
transformation, innovation,and people and culture.
In all, we work to understandour customers’ business models,
what they have promised theircustomers, what our role is in thevalue chain, and how we can help
them deliver on their promises. It is
our Vision, as we aspire to advanceevery company, enhance every
home, and improve every life.

Portfolio
management:leveraging our 3M
Value Model

we’re reshaping the company,
how we're prioritizing businesses
to emphasize the greatest value
creators in our portfolio, andhow we're looking at potential
acquisitions, divestitures, andpartnerships. It’s about accelerating
into the future, driving greaterand greater prioritization.

Transformation:
continuing a criticaljourney
In 2018, we made great progressin our transformation journey,
which leverages our strengths
in technology, manufacturing,
global capabilities, and brand toprovide a more positive overall
experience for our customers.
Specific accomplishments:

In 2012, we introduced a newframework for thinking about
portfolio management, looking
across the entire 3M portfolio withan eye toward relative strategic
and financial attractiveness. At
that same time, we consolidated
from 40 to 23 divisions inorder to create more value andrelevance for the customer.

• Successfully deployed ERP(enterprise resource planning)systems in Europe and U.S.

Today, portfolio management
continues to be a key to the way• Created value throughnew service models• Simplified, standardized, andredesigned business processes• Advanced streamlined,
end-to-end engagementwith customers

193

Customer
insights

People and culture:collaborating andcreating locallyCustomer-inspired innovation

When collaboration results inmeaningful innovation — solving
real problems — it becomesamazing and awe-inspiring. To
get there, we believe it’s essential
to be close to our customers.

Innovation:customer-inspired

Customer
needs

no

lo

gy

Insightsn
ai ise
om rt
D pe
ex

Technology itself is not sufficient
to create differentiated products
and solutions. Our innovation
truly comes from the confluenceof customer and market insights,
technology, and our culture ofcollaboration and entrepreneurship.
We strive to invent things that are
not only new, but useful. That is
why 3M scientists work directlywith customers to solve theirunique challenges. We take thetime to get to know them, to learn
how they live and work — and tounderstand what we can do toimprove their lives. Collaboratingwith customers assures us weare in tune with their needs. Our
most successful products areinfused with strategic customer
insights throughout the entire
product development process.

#improvinglives

3M 2019 Sustainability ReportchMoving forward, we will
work to enhance customer
service, increase value creation,leverage ERP capabilities,
streamline deployments, andutilize data and analytics.

Our customers

Te

What we createThat’s why 3M has 54 customer
technical centers across theglobe, where our customers canexperience firsthand the breadthof 3M technologies and how they
can benefit from them. That’s also
why we have labs in 36 countries,
where our scientists work closelywith our customers to develop
solutions for their specific problems.
Some of the problems addressedin our technical centers and labs
are connected to regional and local
issues. Globally, for example, rapid
population growth in urban areas
is creating challenges related toenergy efficiency, clean water, andenvironmental protection. Our local
scientists leverage 3M technologies
to develop relevant solutions thatare unique to their region, often
collaborating with local customers.

Education that raises
everyone’s bar
Proper use of health and safety
products is critical to infection
prevention, personal safety, andoverall health. Building on our
existing customer education
programs, 3M has created training
libraries that are accessible where,
when, and how customers want
them: for on-demand education,
live webinars, in-person events,and education resources.
We deliver educational content
to health care professionals at
hospitals and clinics, professional
conferences, and via online
webinars — all around theworld, through 3M℠ HealthCare Academy. This is not only
important to helping customers
get the most out of our products,
it’s our commitment to helping
professionals improve outcomes
for their patients and customers.

The same holds true for our
Personal Safety Division. In a rapidly
evolving business and occupational
health and safety environment, oureducation and training programs
can instruct workers on workplacesafety hazards and health risks,
personal protection equipment(as regulated by the Occupational
Safety and Health Administration,
or OSHA), and proper use andmaintenance of 3M products.
In 2018, total number of training
instances was 89,900. This only
includes our eLearning platform
and a couple in-classroom events.
Moving forward, we are working
to further expand our record
system for in-classroom events.
Some 2018 training
accomplishments can be found here.

Additional details can be found in
our innovation management section.
194

195

Our customers

Innovation taken toa higher level: ourSustainability Value
Commitment

This commitment also includes
products with a core purpose ofhelping to solve an environmental
and/or social problem, such as
improving air quality, reducing
greenhouse gas emissions, andimproving worker and patient safety
in health care and industrial settings.

#improvinglivesLo
fo okirw ng
ardWhat we create

In 2018, we took the biggest
step yet in viewing innovation
through a Sustainability lens:
We announced that beginning in2019 3M products entering thenew product commercialization
process will be required toinclude their Sustainability
impact and how it drives impact
for the greater good. This is anambitious commitment, giventhat 3M launches approximately
1,000 new products each year.
The new requirement is part of
3M’s commitment to Sustainability
in fulfilling its role as a purposedriven business, and builds on ourlegacy of Sustainability leadershipamong global companies.
Examples of a Sustainability Value
Commitment in new 3M products
include materials reduction,
recyclability, energy and watersavings, responsible sourcing,renewable materials, and/or reuseappropriate for the specific product.

196

3M’s new product requirement
will have a global impact, startingwith our operations in the 70
countries where we operate
and in the products we sell innearly every country. It will
also help our customers reach
their own Sustainability goals.
Most important, it impacts 3M
employees. When you work for
3M, you are changing the world.

As a large and diverse global
science company with customers
spanning many industries andglobal markets, we have theopportunity to make an evengreater impact in Sustainability.
As part of our strategic focus
on empowering Science for
Circular, Climate, and Community,
we will work to design a world
where 9 billion people canthrive by applying boundaryless,collaborative science to reinvent
the products, processes, andsystems that improve every life.
We will continue to leverage ourdiversified technology portfolio tocreate innovative solutions for ourcustomers and markets. We are
evolving our technology platforms
for the changing and anticipatedneeds of high-growth markets, andwe are augmenting our materialscience expertise with digital,
where appropriate, to create value
for our customers and for 3M.
In 2019, we will also apply the
new 3M Sustainability Value
Commitment to new productcommercialization, across theboard, and across the globe.

197

What we create

Innovation management#improvinglives

3M 2019 Sustainability ReportInnovation
management
Applying science tosolve for Sustainability.
Ourcommitment
At 3M, asking “what if” is our wayof life. We are a company rooted inscientific exploration and discovery.
We believe that every problem
has a solution. All our businesses
are connected by our fundamental
strengths — technology,
manufacturing, global capabilities,
and brand — which allow us toinvent, build, and sell products
across our vast global network.
R&D is our heartbeat. We continue
to invest in scientific research andproduct development in close
partnership with our customers
and the marketplace. R&D fosters
a constant stream of uniqueand cutting-edge products thatdrive organic growth. In fact, in
2018, we invested 1.8 billion(USD), or nearly 5.5 percent
of our sales, back into R&D.

198

Another reason for our successis innovation: There are no silos
here. Our 46 technology platforms
are shared and combined acrossbusinesses and regions to invent
unique products for a variety ofindustries. No single businessowns any of these platforms. They
are managed by the company
and can be leveraged by anyof the businesses to serve theirrespective customers or markets.
Our “15% Culture” — instituted six
decades ago — inspires creativity,
risk-taking, and collaboration. It
gives 3M employees the freedom
to take risks and learn fromour mistakes. That freedom isessential to scientific discovery.
3M employees have the freedom
to spend 15 percent of their timeon projects that interest them.
Out of that time come new ideasthat might eventually become
successful new 3M products. Learn
more about our 15% Culture here.

Product Safety,
Quality, andStewardship Principle

3M has earned more than 113,000
patents over the years, a testament
to the strength of our innovationengine. Every year, on average,
3M earns 3,000 patents.
The policies and standards thatguide the design, manufacturing,marketing, and sale of 3M products
share a common foundation:
the 3M Code of Conduct.
The Code of Conduct is an
overarching guide to theappropriate decisions and actionsof 3M individuals and teams
as they go about their work. It
defines our values and the
responsibilities 3M employees
and 3M suppliers must meet.
Under this broad umbrella ofvalues are principles that more
specifically outline what 3M
believes is the ethical approach tovarious work situations, including
situations that involve innovation
management of 3M products.

Our customers depend on 3M’s
products to advance, enhance,
and improve their companies,
homes, and lives — and we havea responsibility to live up to those
expectations. For this reason, wemust strive to produce only thehighest-quality products. Every
item we sell must meet rigorous
quality standards and must be
safe for its intended use.
As detailed in our Product Safety,
Quality, and Stewardship Principle,
located under 3M’s Code of
Conduct – Be Fair, 3M employees
must know and follow all applicablelaws, regulations, and 3M policies,
standards, and procedures for
product safety, quality, andstewardship and must report andrespond to concerns diligently. 3M
management is responsible foraddressing reported concerns andassuring that 3M employees areproperly trained in applicable laws
and regulations and 3M policies,
standards, and procedures.
Further, we take it as our
responsibility to produce productswith superior environmental

performance across their entire
life cycle, including productreuse and repurpose, and to workwith our suppliers and business
partners so that their operations
support these same objectives.

Product Safety,
Compliance, andStewardship Policy
3M’s Product Safety, Compliance,
and Stewardship Policy
underscores our commitment
to commercializing and selling
products that are safe for theirintended uses, compliant with allapplicable Environmental, Healthand Safety (EHS) regulations and
3M expectations, and developedwith a goal to continuously
improve the EHS performanceof products and corresponding
manufacturing processes.

anticipated use or misuse, recycling,reuse, repurpose, and disposal.
The process must meet andmaintain continuous compliancewith applicable national, regional,
and local regulations, and 3M
expectations. These businessprocesses 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 thedevelopment, commercialization,and sale of 3M products.
In addition, we have established
an internal standard to assure
uniform compliance globally forthe manufacturing, sale, testing,and promotion of medical
devices, food or drink, food or
drink supplements, food or drink
additives, drugs, and cosmetics foruse in or with humans or animals.

Each 3M business group must
maintain processes for theeffective global review of
product safety, compliance, andstewardship requirements. This
includes consideration of EHS
aspects relevant throughout thelife cycle of a product, including
raw material selection, productdesign, formulation, manufacturing,marketing, sale, intended and199

What we create

Innovation management

ChemicalsManagement Policy

use in 3M products and processes
requires prior corporate approval.

3M is a science-based company
committed to applying ourscientific expertise to improving
lives. Helping people live safeand productive lives is important
to 3M — for our employees, ourcustomers, and everyone livingon the planet. Chemicals are
essential for producing 3M’s broad
range of products, and part of
3M’s role in helping people live
safely is effective and responsible
chemical management.
In 2018, we adopted the new
Chemicals Management Policy,
which replaces existing policies
and standards on chemicals
management. This commitment
reflects the evolving values of 3M
and our stakeholders. Under thispolicy, to continuously improve theenvironmental, health, and safety(EHS) attributes of our products, 3M
has identified specific chemicals
whose use in products andmanufacturing processes is subject
to approval by the Corporate
EHS Committee. In 2018, 3M hastargeted 31 specific chemicals on
which we are reducing our reliance.
Our Managed Substance List goesbeyond the 31 targeted substances.
Any substance being considered for
200

Advertisingand ProductRepresentation
Principle
3M’s reputation as a responsible
company extends to the products
and services we offer and how
we represent them. 3M must
communicate honestly andaccurately about 3M’s products
and services. Learn more on thisby visiting our Advertising and
Product Representation Principle.
It’s our policy to represent
our products truthfully, fairly,
and accurately in all sales,
advertising, packaging, andpromotional efforts. All productclaims must be substantiatedand technically accurate as
specified by the Advertising and
Product Representation Policy.
3M’s Environmental Marketing
Claims Support Team assists
businesses in the substantiation ofenvironmental product claims andcomprises laboratory scientists,
legal staﬀ, life cycle management
professionals, and others withmarketing and business expertise.

#improvinglives

3M 2019 Sustainability Report

Hazardcommunicationand composition
disclosure
Communicating the potential
hazards of 3M materials supports
3M’s core values and is an integral
part of keeping stakeholders
informed about 3M materials. The
vehicles for communicating thesehazards and product chemicalcomponents include safety data
sheets (SDS), product labels,
product literature, instructions foruse, transportation classification
documentation, and othercommunications tools. Eachbusiness group must evaluate thepotential hazards of 3M materials
and transmit, in local country
language(s), information about thehazards to employees, contractors,
and customers; it must meet all
regulatory requirements and 3M
standards and guidelines; and it
must promote informed decisions
about the materials’ proper andsafe handling, use, and disposal.

Alternatives toanimal testing

3M’s Sustainability
Value Commitment

3M is a major advocate for the use,
wherever practicable, of alternative
test methods (non-animal) to help
develop safe products. 3M iscurrently utilizing many of thesealternative methods, such as
computational toxicology and invitro testing using isolated tissues
or cells. We are also investing in theinternal and external developmentof new methodologies that
replace animal testing. Where
animal testing is required, we
follow our Animal Welfare in
Testing and Research Policy.

Beginning in 2019, all new
products entering the new productcommercialization process will be
required to describe their product’s
Sustainability impact and how it
drives impact for the greater good.

Human Subject
Research Policy
Our Human Subject Research
Policy protects the rights, safety,
and welfare of human subjects
who participate in 3M supported
research. All supported research
involving human subjects must be
conducted in accordance with allapplicable national, regional, andlocal ethical and legal rules andregulations, and must be conductedin accordance with three principles,as described in the Belmont Report:
respect for person, justice, andbeneficence (or, do no harm).

A Sustainability Value Commitment
in a new product is a clear
demonstration of how the productincorporates environmental and/or
social factors to contribute to ouraspirations laid out in our Strategic
Sustainability Framework. Example
of consideration including thefollowing: reusability; recyclability;
energy, waste, and water savings;
and responsible sourcing and/or
renewable materials appropriate
to the specific product throughout
a product’s life cycle.

launches approximately 1,000
new products each year, with asignificant fraction of its revenue
generated from products releasedin the past five years. Beyond 3M’s
own operations, a primary reason
for the goal is to help customers
achieve their Sustainability goals.
This new product goal creates evenmore opportunities to collaborate
with customers on solutions that
improve lives around the world.

A Sustainability Value Commitment
can also stem from a core purposein which the product helps to solve
an environmental and/or social
challenge — such as improving
air quality, reducing greenhousegas emissions, and improving
worker and patient safety in healthcare and industrial settings.
The impact of 3M’s new productrequirement is global in scale: 3M
201

What we create

Our actions
The challenges we must tackle
for a sustainable future don’t
always operate by clear rules
or methods, but we see themclearly. They are broad. They areinterrelated. They are solvable. And
we know science can help tackle
them. We at 3M have the unique
opportunity to apply our passion
and collaborate enterprise-wide.

Great brands
are based on an
enduring idea thatdrives their purpose.
At 3M, we apply science toimprove people’s everyday lives.
But just as society’s problems
continue to evolve, so does ourscience. We are relentlessly
evolving and adapting ourtechnology to continue to help
people by solving their problemsof today and tomorrow.
Our 46 technology platforms, the3M periodic table of elements,
showcase the building blocksof 3M. They are elements ofprogress. Alone, they are eachunique. Combined, we makesolutions for our customers.
202

Innovation management#improvinglives

3M 2019 Sustainability Report

Global capabilities

Key

Global capabilities

Sales & marketing
Manufacturing & converting
NorwayUnited States
CanadaSwedenGermany

Netherlands
Belgium

Switzerland

Lithuania
LatviaEstonia

Finland
Austria

Czech
Republic

DenmarkUK
MexicoPolandUkraineHungary
Romania

Kazakhstan
RussiaIreland

China

FranceGuatemalaDominican
Republic

El Salvador

Japan

Italy
Portugal
Spain

Jamaica
Costa Rica

BrazilVenezuela
Ecuador

Peru

Nigeria

Eygpt

IsraelSouth Africa

Sales in 200 countries

Malaysia

Manufacturing & converting
inManufacturing
35 countries&

converting in
35 countries

Indonesia

Sri
Lanka
Saudi
ArabiaKenya

Argentina

Sales in 200 countries

Philippines

Pakistan

Uruguay

Chile

Vietnam

3M
Gulf

TurkeyLaboratory & applicationengineeringin 50 countries
Laboratory& applicationengineering i n 50 countries

Australia
New Zealand
India
Singapore

Sales & marketing
operations in Sales & marketingoperations
69 countries

in 69 c ountries

Unique anddifferentiated value

Hong Kong
Thailand

MoroccoTrinidad &TobagoKorea

TaiwanGreecePanamaColombia

Technical capabilities

The 3M periodic table will
evolve to assure future-forward
technologies aligned with ourstrong foundational expertise. This
includes our commitment andexpertise in making products withless materials, improving ours andothers' environmental footprint, andemphasizing our use of scienceto create a more positive world.

The power of 3M is in the way
we connect our fundamental
strengths to customers. Thosestrengths are our capabilities
and brand. They define us as anenterprise and combine to build abusiness greater than the sum of
its parts. The power of 3M arosefrom our deep understanding ofwhat it is that differentiates us in
our performance, across every
business in our enterprise. It truly
reflects how we’re linked together
in our portfolio even though wemight operate in multiple markets.
It’s about our technology, but
not just standalone science: It’s
technology supported by deep
intellectual property and combinedwith multiple other technologies
to enable us to do unique things
with and for our customers.
203

What we create

Innovation management

3M power is also about our
manufacturing strength. We’redifferentiated and advantaged in
the marketplace through in-house
3M plant and facility ownershipthat also leverages 3M intellectual
property. A third of our intellectual
property sits in manufacturing,much of it in trade secrets, enabling
us to deliver higher-quality, betterperforming, more competitive
products in the marketplace.

adds value to every one of ourbusinesses across all our markets.

True global capabilities require morethan just presence in international
markets. They require the skillsof our international organization
to execute our business models
and enable us to enter thosemarkets successfully — to takeour fundamental strengths andapplications almost anywherein the world. We have sales innearly all countries, with twothirds of our workforce and sales
professionals working outside
the U.S. By employing integrationand collaboration across ourbusinesses, geographies, andscientific disciplines we effectively
and efficiently bring new ideas
and products from the lab to thefactory to customers’ homes
and businesses everywhere.
And finally, it’s our brand, 3M
Science. Applied to Life.™, that204

Leveraging these fundamental
strengths — technology,
manufacturing, global capabilities,
and brand — is truly what
creates the power of 3M.

Leveraging strategic
partnerships
3M is able to transform diverse
ideas and creativity into superior
technologies, business assets, andinnovative product platforms.
One of many things that makes
3M a singular company is ourcommitment to collaboration.
There are no silos here. We
collaborate with each other. Acrossbusinesses. Across technologies.
Across oceans and continents.
Case in point: the 3M Tech
Forum, a self-directed and selforganized catalyst for the 10,000plus people in 3M’s technicalcommunity. Begun more than 60
years ago, the Tech Forum gives
3M researchers the opportunity
to compare notes with global
colleagues, collaborate aroundthe company’s 46 technology
platforms, and develop new#improvinglives

3M 2019 Sustainability Reportideas 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 theyear. Included among our Tech
Forum chapters are the Global
Product Stewardship, Green
Chemistry, and Climate chapters.
Additional information on open
innovation at 3M can be foundin our customer section.

Discovering what
the world thinks ofscience
At 3M, science is important tous. It’s what fuels our Vision:technology improving every
company, products enhancing every
home, and innovation improving
every life. But we also believe it’s
important to understand what
the world thinks of science — ifpeople outside our organization are
unaware of it, if they are indifferent
to its presence around them, orif they see, feel, and appreciate
its impact. Since we couldn’t
find the answers elsewhere, we
conducted our own research in2018 to get them. The results
are in the 3M State of ScienceIndex, and they are compelling.
Discover what we found out about
the image of science, along withrevelations and insights frompeople around the world, here.

• Explore: Identify themarket opportunity

A process that’s built
for innovation• Deploy: Develop thetechnical solution

The strength and uniqueness of 3M
is our ability to combine and evolve
multiple technologies from our 46
platforms to serve the very different
and changing needs of our markets.
Our scientists around the world
share and combine thesetechnologies across all ourbusinesses to invent andmanufacture cutting-edge
products. These technology
platforms are owned by thecompany. Development teams
within each of our businesses andcorporate research laboratories
draw from these technologies
to develop unique solutions fortheir customers and markets.
New-to-the-world processes
are developed primarily in
3M’s Corporate R&D Process
Laboratory, and the developmentof these new processes arecaptured in our New Technology
Introduction (NTI) framework:

3M’s fundamental
strengths• Qualify: Identify superior productconcepts to meet customer needs

Meanwhile, our New ProductIntroduction (NPI) processprovides the robust frameworkfor developing products
from idea to launch.
Together, 3M’s NTI and NPIprocesses provide a common
framework for technology andproduct commercialization for all
global business. Information isrequired at every step, or gate, inthe process, along with deliverable
tasks. Having consistent practices
throughout the company fortechnology and product creation
assists in risk analysis by providing
a common language from whichto share tools and best practices
and manage project portfolios.

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

Manufacturing
Utilization of 3M manufacturing
footprint and technology, including
process trade secrets, leading tohigher-performing products andlower unit costs.

Global capabilities
Subsidiary front and back office
footprint that allows for the effective
development, adaptation, andcommercialization of products.

Brand
Brand equity in the 3M brand andin strategic brands that is sharedacross business groups.

205

What we create

Innovation management

Product innovationthat takes thelong view

our corporate Management of
Change (MOC) process. We
leverage these LCM processes
to continuously improve the EHS
performance of our products.

3M works to produce productswith superior environmental
performance across their entire
life cycle. We also work with our
suppliers and business partners
so that their operations support
these same objectives. These
efforts together help define,protect, and assure the longterm success of our company.
Life cycle management (LCM) is
3M’s approach to assuring that
EHS and associated regulatory
considerations are integrated
into the development andcommercialization of 3M products
through 3M’s NPI process. During
NPI, our business teams provide
LCM deliverables. These include,
at a minimum, raw material
composition; assessments inhuman health and environmental
toxicology, electrical andmechanical safety, and otherdisciplines, as appropriate;
conformance to regulatory andcustomer EHS requirements; andhazard communication documents.
Likewise, we evaluate LCM impacts
from product modifications through206#improvinglives

3M 2019 Sustainability Report

Research &Development
Raw Materials
Acquisition

Manufacturing& Production

Disposal
Recycling

Distribution &Transportation
Protect Use& ReuseA product
stewardshipframework that
continues to advanceResponsibility for productstewardship at 3M is shared acrossa broad spectrum of functions
positioned within businesses,
regions, and corporate staff groups.
Together, individuals across thisspectrum work to support 3M’s
core value of respect for our socialand physical environment.
Product responsibility liaisons(PRLs), or product stewards,
embedded within 3M businesses
and countries of operation, act
as champions of product EHS,

regulatory compliance, andSustainability. They help assure
our products meet or exceed
requirements stemming from 3M
policies, governmental regulations,and from our customers.

together for a week-longproduct stewardship conferencewith workshops, customer
presentations, external speakers,
executive panels, and training.
The main objectives included:

Our framework for productstewardship provides structure
and consistency for overseeing
daily activities in a proactive, notreactive, mode. We have a longexisting process for tracking
potential and near-miss incidents
and a self-auditing program to
identify leading indicators insteadof waiting until non-compliance.

• Advancing “customer first” objectives
and processes within the global
product stewardship organization

3M has been on the leading edgeof product stewardship audits,
beginning with self-assessments
in international regions in
2007, and incorporating global
on-site audits in 2014. These
audits evaluate, among otherelements, product hazard and risk
assessment, chemical control, life
cycle management, and consumer
product safety. The goal of theseaudits is to assure that regions
and business groups are meeting
corporate standards, and toshare best practices globally.
In May of 2018, over 150 3M
product stewardship professionals
from across the globe came• Informing the redesign of the LCM
process and systems to improvecustomer response, standardize
processes, and gain productivity• Sharing solutions from country tocountry for addressing productstewardship challenge areas• Raising global competency
levels through training andworkshops, with a focus on LCM
and regulatory advocacy• Advancing the role of productstewardship in Sustainability

3M values the continued
professional development of its
product stewardship professionals.
In addition to conducting the Global
Product Stewardship Conference
and supporting attendance at awide variety of external classes
and conferences, we offer aninternal education program

covering regulatory, policies andstandards, toxicology, systems
and business processes, andorientation to product responsibility.
In 2018, the Corporate ProductStewardship Department offered 21
live programs and 46 on-demandsessions to the product stewardshipnetwork. The corporation alsosponsors a 700-page website
dedicated to product stewardshipand global regulatory requirements,
and we publish a monthly global
newsletter to keep the network
informed of recent and upcoming
regulatory and program changes.

Life cycle
assessments (LCA),
where relevant andfeasible
In addition to the LCM program,which applies to all 3M
products, we also complete
ISO 14040-compliant LCAs forselect 3M products. At 3M, we
primarily complete cradle-togate LCAs, since the majorityof our products have use anddisposal life cycle stages that are
difficult to characterize. We also
complete cradle-to-gate LCAs fora number of internally produced
chemicals that are used in the
manufacturing of 3M products.

While it is not possible to complete
full LCAs for all 55,000-plus
unique 3M products, evaluationof these intermediates allows us
to better understand the potential
environmental impacts of key
components and processes.
In 2018, 3M LCA teams in the U.S.
and Europe renewed their processcertifications from The International
EPD® System to demonstratethat appropriate procedures arein place to produce scientificallysound, technically defensible LCAs
and EPDs (Environmental ProductDeclarations). Rather than conduct
independent third-party reviewsfor each individual product LCA
or EPD, the teams will continue toundergo an annual recertification
process that evaluates conformanceof 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.
For our customer greenhouse gas
reduction (GHG) 2025 goal, we
realize we can make far greater
contributions by helping ourcustomers reduce their GHG
emissions through use of our
products. To calculate theseemission reductions, our process207

Innovation management

is based on life cycle thinking
and the ISO 14064-2 standard
for comparing emissions from the
project scenario against a baseline
scenario. Additional details of these
efforts can be found in the climate
and energy section of this report.

and external advocacy of packaging
Sustainability. For example, 3M
Canada Strategic Sourcing andPackaging Solutions continues
to serve as an advocacy model,
hosting their 12th annual supplierand vendor Sustainability fair atthe 3M London, Ontario, location.
For the second year in a row,
local high school students andteachers were also invited. The
agenda also included community
partners such as local municipal
government, the local conservation
authority, and non-governmentalorganizations showcasing their
Sustainability programs.

#improvinglivesLo
fo okirw ng
ardWhat we create

Life cycle approach inpackaging design
In 2018, we continued our longstanding commitment to efficient
packaging design. Over the last five
years, globally, we have reduced
designed packaging weight by
more than 13,700 metric tons.
Support for better packaging
solutions starts early at 3M via
engagement with our NPI and
LCM processes. In an effort to help
3M employees design packaging
using a life cycle approach, a
new model was deployed in
2018. Over 120 packaging
designs were evaluated using a
streamlined LCA. Three separate
projects alone — returnable
packaging, reusable packaging,and lighter-weight pallets — will
reduce an estimated 7,700 metrictons of CO₂, reinforcing ourcommitment to climate health.

In 2019, 3M will launch a new
website within 3M.com toprovide customers with complete
ingredient information for over 600
consumer-formulated products. The
website will include information
on ingredient purpose and, if
applicable, ingredient inclusion
on chemical-of-concern lists.
We have a process that provides
the robust framework fordeveloping products from idea
to launch. Starting in 2018, andcontinuing deployment through2019, we are building on our
existing framework for new
product introduction through a
new system called 3M|Grow. As
part of this new framework, we’re
updating task and deliverables
for the process to align with our
Sustainability Value Commitment.

We will finalize our packaging
Sustainability roadmap, firmly built
within the “Science for Circular”
aspiration, and progressively
roll out prioritized targets. Ourroadmap will necessitate further
collaboration with key suppliers
and internal stakeholders to identify
and explore sustainable packaging
opportunities and technologies,
including migration from fossil-fuelbased plastic feedstocks toward
renewable plastic feedstock, andto increase the recycled content
of our packaging materials.

An important part of our packaging
Sustainability roadmap is internal
208

209

What we create

Our products#improvinglives

3M 2019 Sustainability Report

Our
products

Stepping up Sustainability
in 2019, and beyond.
Ourcommitment
At 3M, we bring all of our productsolutions to different markets
through our five business groups —sharing technology, manufacturing,marketing, and other resources toincrease our speed and efficiency.
What’s more, as of December 5,
2018, every 3M business groupshares another powerful bond.
On that day, at the National
Climate Change Conference(COP24), we announced that
100 percent of our new products
will be required to have a
Sustainability Value Commitment
demonstrating how they drives
impact for the greater good.
This formal requirement, whichgoes into effect in 2019, issignificant because it embeds
Sustainability into the pipelinethat produces 3M's diverse
210

global products. A significant
fraction of the company’s annual
sales come from products
created in the past five years.
Examples of a Sustainability Value
Commitment in new 3M products
include recyclability, energy
and water savings, responsible
sourcing, renewable materials, andappropriate reuse of a product. Also
included will be products whose
core purpose is helping to solve
an environmental and/or social
problem. For example: improving
air quality, reducing greenhousegas emissions, improving patients
outcomes, and enhancing worker
safety in industrial settings.
3M’s new product requirement
will have a global impact, startingin the 70 countries where we
operate and in the products wesell in nearly every country. It will
also help our customers reach

their own Sustainability goals.
Most important, it impacts 3M
employees. When you work for
3M, you are changing the world.
It’s another important step
forward in our ambition to apply
science to improve every life,
through our three aspirations(Science for Circular, Science
for Climate, and Science forCommunity) and through eachof our five business groups.

3M
3M20182018netnetsalessales

Our actions
In 2018, we delivered organic
growth of more than three percent
with growth across all businessgroups and geographic areas.
We also delivered record sales of$32.8 billion.

$32.8B*

Consumer$4.80B

Electronic &Energy$5.47B

Health Care

$6.02B

Industrial$12.3B

Safety &Graphics$6.83B*In*Inaddition
additiontotoour
ourfive
fivebusinessbusinessgroups,$32.8B
includesof dual credit,groups,$32.8Belimination
includes elimination
andandunallocatedsegments.
of corporate
dual credit,
andcorporate business
andunallocated business segments.

211

What we create

Our products

3M 2019 Sustainability Report

Consumer
2018 sales:$4.80B
Our markets
Consumer
Health Care

$0.389B

Constructionand Home
Improvement$1.96B

Home Care$1.01B

Stationary and
Office Supplies$1.38B

Bringing 3M
to the hearts
and minds ofcustomers
Our business focus
Supplying an array of innovative
products that keep homes cleaner,
offices organized, and buildings
well-maintained, our Consumer
Business Group is home to some ofour most iconic brands, including
Post-it®, Scotch®, Scotch-Brite™
products, Filtrete™, Nexcare™,
and Command™. These products
simplify managing a home or abusiness, and make lives a little
easier and more efficient.

Some Sustainability
examples• According to the World HealthOrganization (WHO), 93 percentof the world’s children under theage of 15 years breathe air that is
so polluted that it puts their healthat risk. To address this issue, 3M
has launched our first children’s
small respirator with a valve
designed for ages seven to 12. This
product combines low breathing
resistance with comfort and design212#improvinglives

Electronics& Energy
while helping protect children
from potentially harmful effectsof air pollution. Learn more here
• Post-it® Super Sticky Notes haveextra sticking power so your message
can stay front and center. These
notes are now available in a fun cube
format featuring 360 sheets. This
product is made in a zero-waste-tolandfill plant. In addition, to lessen
our dependence on fossil fuels, thisproduct is made with a plant-based
adhesive (67 percent by weight),
and the product is also recyclable• Our new Filtrete™ Room Air Purifiers
help capture 99.97 percent of
airborne particles such as dust andlint, mold spores, bacteria, and pet
dander with a Filtrete™ True HEPA
filter.1 Several of these devices
have also earned ENERGY STAR®
certification. ENERGY STAR®
certified room air purifiers are 40
percent more energy efficient thanstandard models. Learn more here

$5.47B

Advancing aconnected
world

Our markets

Our business focus

2018 sales:

Electronics
Energy$3.97B$1.49BAt 3M Electronics & Energy
we help our clients make theimpossible possible. Our people
lead innovation through developing
new applications and technologies
that help customers solve their mostchallenging problems. We are on
the leading edge of building new
platforms in emerging, high-growthelectronics market segments likedata centers, grid modernization,
and automotive electrification. We
create solutions that power andconnect cities, homes, cars, andpeople and provide real-time accessto data, wherever it’s needed.

Some Sustainability
examples• Light-redirecting films,
tapes, and materials that enablehigh-efficiency solar panels• Wind protection tapes that
help improve turbine uptime• Cable accessories that enable
reliable power generation

Learn more on our Electronics& Energy Business Group by
visiting our 3M Investor Day
presentation and recording.

Learn more on our Consumer
Business Group by visiting
our 3M Investor Day
presentation and recording.
1As small as 0.3 microns, from the air
passing through the filter media.
Initial efficiency value

213

What we create

Our products

3M 2019 Sustainability Report

Health Care2018 sales:$6.02B
Our markets

Medical Solution$3.05B

Oral Care$1.35B

Health Information $0.837B
Drug Delivery$0.444B

Food Safety$0.332B

Some Sustainability
Helping
exampleshealth care
professionals
prevent
complications
and improve
patient
outcomes• 3M™ Petriﬁlm™ Plates comparedwith traditional agar test methods
oﬀer users up to a 66 percent
reduction in waste, use up to 76
percent less energy, up to 79 percent
less water, and reduce greenhousegas emissions up to 75 percent• Five 3M Health Caremanufacturing sites have achieved
zero-landfill-waste status

Our business focus
Our Health Care Business Group isa global leader in medical and oral
care products, drug delivery systems,
health information systems, and foodsafety systems — supplying advanced
solutions that help health care
professionals improve the quality andeffectiveness of care for millions ofpeople while managing overall costs.

214• We developed a partnershipwith World Dental Federation
on implemented Smiles Around
the World program in China topromote lifelong oral health

Learn more on our HealthCare business group by
visiting our 3M Investor Day
presentation and recording.

#improvinglives

Industrial
2018 sales:$12.3B
Our markets
Adhesiveand Tapes

Advancingindustry
performance
Our business focus$4.61B

Automotive
and Aerospace$2.06B

Abrasives$1.80B

Automotive
Aftermarket$1.64B

Using a transformed approach
to customer engagement, ourIndustrial Business Group provides
thousands of innovative solutions
and products. You can find our
products bonding and protecting
surfaces in construction; improving
the design and maintenance of land,
air, and water transportation; andpurifying air and water for bothresidential and industrial uses.

Some Sustainability
examples• Light weighting vehicles
for fuel efficiency• Adopting reduced-solventand solvent-free adhesives• Cutting faster, which createssignificant ergonomic andproductivity gains

Learn more on our HealthCare Business Group by
visiting our 3M Investor Day
presentation and recording.

Advance Materials $1.24B
Separation
and Purification$0.913B

215

What we create

Our products#improvinglives

2018 sales:$6.83B
Our markets

Some Sustainability
Advancing
examplessafety,enhancingenvironments,
improvinglives• Energy-saving window films• Water and chemical wastereducing cleaning solutions

Personal
Safety$3.68B

Commercial
Solutions$1.84B

Transportationand Safety$0.95B

Roofing Granules$0.353B

216

Lo
fo okirw ng
ardSafety &Graphics
Our business focus
From personal protective equipment(PPE) that protects people athome and work, to traffic signs
and pavement markings that
improve road safety, and exterior
signage and interior graphics
that enhance the impact of visualand design communication, our
Safety & Graphics Business Group
exists to make the world a moresecure and more productive
place to live and work.

Beyond financial results, in 2018 we
continued to position 3M for longterm growth and value creation.
This includes executing our fourpriorities: portfolio management,
transformation, innovation, andpeople and culture, as discussed
in this report’s 3M Value Modeland our customer sections.

• Roofing granules that harness
the power of the sun to
improve air quality

Learn more about our HealthCare Business Group by
visiting our 3M Investor Day
presentation and recording.

217

Introduction

re Ab
po o
u
rt t

About report218

3M 2019 Sustainability Report#improvinglives

Report scope and boundaries

220

Indices to GRI and UNGC

226

Assurance statement

244

Metric tables

250

219

About report

Report scope and boundaries

About report,
Title
Subhead 2
scope, andboundaries
Report schedule and period.

Current issue: May 14, 2019
Next issue: Scheduled for May 2020
Previous issue: May 8, 2018
Before 2010, the 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 2018 (January 1, 2018, to December 31, 2018).

220#improvinglives

3M 2019 Sustainability Report

Organizationalboundaries
This report covers 3M’s owned
manufacturing facilities and leased
facilities worldwide, including joint
ventures (if greater than 50 percent
3M ownership) and partially owned
subsidiaries (if greater than 50 percent
3M ownership) where 3M has fulloperational control. Acquisitions areincluded in data sets once legally
owned and fully integrated onto 3M
systems. All data included in thereport is global data unless otherwise
specified. Any significant organization
changes are identified in the Annual
Report 2018 and 2019 Notice ofAnnual Meeting & Proxy statement.

Data collection,
adjustments, andverification
The data provided in this reportthrough facts and figures is basedon activities during 3M’s fiscal
year 2018. For some performanceindicators, the previous year’s
data are provided to allow
for annual comparisons.

Report data collection
Due to the size and geographicalextent of our operations, it is
at times difficult to obtain alldata points. Therefore, to theextent possible, limitations
and assumptions are stated as
information in the report. This
report's data has been reviewed
for accuracy and completeness,
including the reliability of thesystems used to obtain the data.
Unless noted below, corporate
staff have also verified theimplementation of policies andmanagement systems throughaudits and self-reporting systems.

• Financial data: Financial informationreferenced in this report is collected
and reported in accordance with
the United States Securities andExchange Commission throughthe Annual Report 2018
• Environmental, health, and safety(EHS) data: The EHS data in thisreport is related to environment,
safety performance, management
systems, implementation, andregulatory compliance. Data
collection systems are in place
at applicable sites to track andcollect environmental, health andsafety data through corporatewide EHS reporting systems(e.g., Environmental Targets
Database, Worldwide IncidentManagement System, etc.)• Social data: The data related
to employee metrics, metrics,
social practices, and community
programs has been derived
from various databases fromwithin the Human Resourcesand 3Mgives organizations.
This data has been reviewed
and verified by the departments
responsible for maintaining theinternal reporting systems• Responsible sourcing systems anddata: The policies and management
systems implementation in thisarea have been reviewed andverified 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 and site systems
before being acquired; however,on average, integration ranges
between one and three years.

Base year and otheradjustments
3M’s Annual Report 2018 andInvestor Relations website
document any changes tofinancial data. Several of 3M’s
environmental 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’sorganizational structure. As a result,
3M sets environmental targets
that are normalized or indexed to221About report

Report scope and boundaries

production (tons emitted or net
sales) to assure the environmental
progress we report to the public is
not unduly influenced by changes
to our organizational structure.
However, in the case of ourgreenhouse gas emissions data,
3M follows the World Resource
Institute (WRI) and World
Business Council for Sustainable
Development (WBCSD) GHG
Protocol. Consequently, we readjust
our greenhouse gas emissions baseyear data in the case of businessacquisitions and divestitures.

this period included recycling.
In 2011, 3M returned to a moreconventional definition of wastethat considered recycling as neutral(contributing neither toward total
waste nor toward good output).

Whenever feasible, 3M adjusts
base-year and other years’ 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 fromprevious years are disclosed in
the report. Significant changes
are defined by this Sustainability
Report as changes greater than 5
percent of the original data point.

For this year’s report, we identified
an opportunity in last year’s (2017reporting year) process used to
identify manufacturing facilities
for a portion of our greenhousegas emissions (GHG). In 2018,
and moving forward, facility
classification will better align toour 2002 inventory. This change
impacted calculation methodologies
for energy and waste GHG
estimations. Therefore, limiting
direct comparability of Scope
1, 2, and Scope 3 category 5
between reporting year 2017 and2018. For this reason, reporting
years 2017 and 2018 Scope 1 and
2 GHG emissions year-on-yearcomparison should be viewed
as an estimate. The 2018 GHG

Between 2005 and 2010, 3M
adopted a holistic definition ofwaste to drive the company’s
waste reduction efforts toward
more sustainable solutions, such aspollution prevention. 3M’s waste
reduction goal and progress during
222

3M’s 2025 Sustainability Goals
utilize 2015 as the base year.
Starting with this program, waste
disposed and waste by disposal
type do not include waste-toenergy. Total hazardous andtotal non-hazardous include
waste-to-energy.

#improvinglives

3M 2019 Sustainability Reportinventory is fully comparablewith baseline year 2002.
In addition, we identified an inputchange for our Scope 3 category
6, emissions from business travel.
Input data formerly used was nolonger available from one of ourvendors. For calculation of theseemissions, a new input was available
covering reporting years 2016 to2018. This change in methodology
was used to calculate values listed
in this year’s report and reviewed by
Bureau Veritas during our corporate
assurance visit. Previously
reported Scope 3 category 6
emissions should no longer beused for reporting comparison.

Data verification
Internal verification: 3M has
conducted an internal verificationof the information provided inthis report. The objectives for our
assurance process included:• Accuracy and completeness of data
• Reliability of systems used tomeasure and record data
• Reliability of ratios compiled
from underlying data

• Adherence to the GRI Standards• Implementation of internal
policies and related management
systems as reported• Presentation of a complete andfair picture in the report as a whole

Third-party verification: Bureau
Veritas [“Assurance Provider”]
provided independent thirdparty assurance for this reportcovering activities January 1,
2018, to December 31, 2018.
Bureau Veritas provided moderatelevel of assurance in accordancewith AA100AS-2008, Type 2.
Bureau Veritas’ assurance lettercan be found in the reportunder Assurance Statement.

Globalprinciples
andguidelines
Global Reporting
Initiative
The Global Reporting Initiative (GRI)
is a network-based organizationthat includes representatives

from business, government, labor,
third-party advocacy groups, andacademia. The GRI organization
has developed a framework
for Sustainability reporting.
Following the GRI Sustainability
framework advances two important
objectives: transparency and theability to compare results fromone organization to another. 3M
has developed this report using
GRI Standards. The following GRI
Index outlines where specific GRI
reporting elements and indicators
are addressed in the report or otherreporting sources, including theAnnual Report 2018, 2019 Noticeof Annual Meeting & Proxy, and/or other noted sources on 3M’s
Investor Relations website.
Our material aspects are identified
in the GRI Index and reflectedin our 2025 goals, with focus
on raw materials, water, climate
and energy, health and safety,
and education and development.
3M self-declares this report, hasbeen prepared in accordancewith the GRI Standards:
Comprehensive option.

United Nations Global
Compact (UNGC)
Communication on
Progress (COP)The UNGC is a strategic policy
initiative for businesses thatare committed to aligning theiroperations and strategies with 10
universally accepted principles
in the areas of human rights,
labor, environment, and anticorruption. 3M committed to the
UNGC principles in early 2014.
This report includes an index of
our COP implementing the 10
principles as well as alignment
with the United Nations 2030
Sustainable Development Goals(SDGs) within the content of this2019 Sustainability Report.

Sustainability
Accounting Standards
Board (SASB)
For our Sustainability reporting
strategy, we utilize multiple tools
and frameworks to assure weare objective, transparent, andglobally relevant in our public
reporting process. This includes
GRI, SASB, and the SDGs.

223

About report

With corporate operations in 70
countries and sales in nearly all
countries, our strategy is designed
to be holistic. GRI was selected as
the primary source referenced dueto the global reach of the standard.
For SASB, our diversity ofoperations would not be
represented by their current
industry standard classifications;
3M is grouped as a primary SISC
Sector: Resource Transformation,
primary SICS Industry: Containers& Packaging. Using 46 technology
platforms, our integrated teamof scientists and researchers
works with customers to create
breakthroughs via our Consumer,
Electronics & Energy, Industrial,
Health Care, and Safety &Graphics business groups.

Report scope and boundaries

3M 2019 Sustainability Report#improvinglives

UNGC Principles and2030 SDGs
Refer to the GRI Index table forcross-references of content inthis report with the 10 Principlesof the UNGC, and alignment
with the 2030 SDGs.

Contact 3M
It is through collaboration andpartnerships that 3M can accelerate
Sustainability in our company
to improve every life. You cancontact 3M Sustainability at
Sustainability@mmm.com.

In this year’s report, we detail ourefforts on our 2018 materiality
assessment. Before conducting
this assessment, we reviewed
and integrated SASB’s approachto materiality and materiality
map to help prioritize the mostimportant focus areas.

224

225

About report

Indices to GRI and UNGC

GRI index

Global Reporting Initiative (GRI)
content index and UN Global
Compact Communication
on Progress

3M 2019 Sustainability Report#improvinglives

General Standard Disclosure
Disclosure
numberDescription

Cross-reference (hyperlinks) or direct answer

Page(.pdf)

Connections toUnited Nations
Initiatives*

GRI 102: General disclosures, organization profile
102-1

Name of the organization

102-2

Activities, brands, products,
and services

102-3

Location of headquarters

3M Company
Our products

210

Annual Report, 10-K, pages 4-6
3M Company
3M Center
St. Paul, Minnesota, 55144-1000, United States
Operations in 70-plus countries

102-4

Location of operations

Innovation management

198

Names of countries, 3M.com
Annual Report, 10-K, page 127

102-5

102-6

Ownership and legal form

Markets served

Annual Report, 10-K, page 4
Our customers

192

Our products

210

3M.comAnnual Report, 10-K, pages 4-6

102-7

Scale of the organization

Employee programs

124

Metric tables: historical metrics; social performance, employee
and financial performance

250

Annual Report, 10-K, pages 4-6

102-8

Information on employees
and other workers

Employee programs

124

Health and safety

136

Metric tables: social performance, employees

250

UNGC
Principle 6
SDG 8Annual Report, 10-K, page 4
102-9

102-10226

Supply chain
Significant changes to theorganization and its supply
chain

Suppliers

176

Annual Report, 10-K, pages 73-76
Suppliers

176

227

About report

Disclosure
number102-11

102-12102-13

Indices

Description

Precautionary principle
or approach

External initiatives

Membership associations

3M 2019 Sustainability Report

Cross-reference (hyperlinks) or direct answer

Page(.pdf)

Global challenges

52

Environmental management

142

Innovation management

198

Global challenges

52

Human rights

110

Global challenges

52

Connections toUnited Nations
Initiatives*

UNGC
Principle 7

Disclosure
numberDescription

102-23Chair of the highest
governance body102-24102-25Nominating and selecting
the highest governancebody

Conﬂicts of interest

Statement from seniordecision-maker102-15Key impacts, risks, andopportunities

Message from our Chief Executive Officer

4

Message from our Chief Executive Officer

4

Global challenges

52

GRI 102: General disclosures, ethics and integrity
102-16102-17

Values, principles,standards, and normsof behavior
Mechanisms for advice andconcerns about ethics

Corporate Code of Conduct

100

Compliance and Business Conduct at 3M
Corporate Code of Conduct

100

Report a concern or ask a question

SDG 16

SDG 16

GRI 102: General disclosures, governance102-18102-19Governance structure

Delegating authority

102-20Executive-level
responsibility for economic,
environmental, and social
topics102-21

Consulting stakeholders on
economic, environmental,
and social topics

102-22Composition of thehighest governance bodyand its committees

Cross-reference (hyperlinks) or direct answer

Page(.pdf)

Michael F. Roman
Chief Executive Officer

4

Corporate governance88

Corporate governance88

Connections toUnited Nations
Initiatives*

SDG 16

Nominating and Governance Committee Charter
Corporate governance88

Corporate Code of Conduct

100

SDG 5, 16

SDG 16

3M Company Code of Business Conduct and Ethics for
Members of the Board of Directors

GRI 102: General disclosures, strategy
102-14#improvinglives

Corporate governanceCorporate governanceCorporate governance102-26

Role of highest governancebody in setting purpose,values, and strategy

102-27

Collective knowledge ofhighest governance body102-28

Corporate governance88

3M Corporate Governance Guidelines
Corporate governance88

Evaluating the highest
governance body’s
performance

Corporate governance88102-29Identifying and managing
economic, environmental,
and social impacts

Corporate governance88

Global challenges

52102-30Eﬀectiveness of risk
management processes

Corporate governance

88

Enterprise risk

96102-31

Review of economic,
environmental, and social
topicsCorporate governance88

102-32Highest governancebody’s role in sustainability
reportingCorporate governance88

102-33

Communicating criticalconcerns

Corporate governance

88

88

SDG 4

Nominating and Governance Committee Charter
SDG 1688

88
102-34Global challenges

52

Corporate governance88

SDG 16Nature and total number ofcritical concerns

Confidentiality constraints, this information is consideredbusiness confidential; critical concerns would be taken into
consideration during our enterprise risk management initiative:
see enterprise risk for additional information on our mechanism
used to address and resolve critical issues.
Annual Report, 10-K, pages 10-12

3M Board of Directors
3M Committee Composition

Compensation Committee Charter
SDG 5, 16

102-35

Remuneration policies

Compensation

120

2019 Proxy Statement, pages 11-12, 26, 39-41, and 46-64

2019 Proxy Statement, page 14-19, 34-38

Compensation Committee Charter
102-36

Process for determining
remuneration

Compensation

120

2019 Proxy Statement, pages 11-12, 26, 39-41, and 46-64

228

229

About report

Disclosure
numberIndices

Description

Cross-reference (hyperlinks) or direct answer

3M 2019 Sustainability ReportPage(.pdf)

Connections toUnited Nations
Initiatives*120

SDG 16Compensation Committee Charter
102-37

Stakeholders’ involvement
in remuneration

Compensation
2019 Proxy Statement, pages 11-12, 26, 39-41, and 46-64

102-38102-39Annual total compensation
ratio

Percentage increase inannual total compensation
ratio

GRI 102: General disclosures, stakeholder engagement102-40

List of stakeholder groups

102-41

Collective bargaining
agreements

102-42

Identifying andselecting stakeholders

Global challenges

52102-43

Approach to stakeholder
engagement

Global challenges

52102-44

Key topics andconcerns raised

Global challenges

102-46102-47

Entities included in the
consolidated ﬁnancial
statements
Deﬁning report content andtopic boundaries

List of material topics

Description

Cross-reference (hyperlinks) or direct answer

Page(.pdf)

102-51

Date of most recent report

About report

220102-52

Reporting cycle

About report

220

Contact point for questions
regarding the report

About report102-53

220

102-54Claims of reporting inaccordance with the GRI
Standard

About report

220102-55

GRI content index

Indices to GRI and UNGC

226

102-56External assurance

Assurance statement

244

Human rights

Global challenges

110

52

UNGC
Principle 6
SDG 8

Sustainability@mmm.com

Topic specific standards, 200 economic
Disclosure
numberDescription

Cross-reference (hyperlinks) or direct answer

Page(.pdf)

Connections toUnited Nations
Initiatives*

GRI 201: Economic performance103-1 to103-3

Management approach
disclosures

201-1

Direct economic value
generated and distributed

201-2

Financial implications andother risks and opportunities
due to climate change

201-3

Deﬁned beneﬁt plan
obligations and otherretirement plans

Annual Report, 10-K, pages 15-50 and 90

201-4

Financial assistancereceived from government

3M did not receive any significant financial assistance from any
government in 2018.

Annual Report, 10-K, pages 10-12 and 15-51
Annual Report, 10-K, pages 52-127
Metric tables, historical metrics, and financial performance

250

Climate and energy160

SDG 2, 5, 7,
8, 9

Annual Report, 10-K, pages 4-10 and 74-79
About report

220

Global challenges

52

About report

220

Global challenges

52102-48

Restatements of information

About report220

GRI 203: Indirect economic impacts

102-49Changes in reporting

About report

220

103-1 to103-3

102-50

Reporting period

About report

220

230

Connections toUnited Nations
Initiatives*

52

GRI 102: General disclosures, reporting practices
102-45Disclosure
number2019 Proxy Statement, page 82
Not applicable, disclosure does not cover the specific impacts
that make the topic material. 3M has an established process
to assure our commitment to fair and equitable pay. The
breakdown to calculate the median percentage increases does
not accurately reflect our workforce levels and process at 3M
to assure equitable remuneration. Additional details on our
process can be found in Compensation and Employee Programs;
Compensation Committee Charter#improvinglives

Management approach
disclosures

Annual Report, 10-K, page 10-12

Community

SDG 1364

231

About report

Indices

Disclosure
numberDescription

Cross-reference (hyperlinks) or direct answer

Page(.pdf)

Connections toUnited Nations
Initiatives*

Disclosure
numberDescription

203-1

Infrastructure investments
and services supported

Community

64

SDG 2, 5, 7,
9, 11

302-2

Energy consumption outsideof the organization

203-2

Signiﬁcant indirect
economic impacts

64

SDG 1, 2, 3, 8,
10, 17

Community

Management approach
disclosures

Corporate Code of Conduct

302-3

Energy intensity

302-4

Reduction of energy
consumption

302-5

Reductions in energy
requirements of products
and services

100

Operations assessed forrisks related to corruption

Corporate Code of Conduct

205-2

Communication and training
about anti-corruption
policies and procedures

Corporate Code of Conduct

100

SDG 16205-3

Conﬁrmed incidents ofcorruption and actions taken

Corporate Code of Conduct

100

SDG 16205-1

100Management approach
disclosures

206-1

Legal actions for anticompetitive behavior,anti-trust, and monopoly
practices

Description

Corporate Code of Conduct103-1 to103-3

Management approach
disclosures

303-1

Water withdrawal by source

303-2

303-3

100

302-1

232

Management approach
disclosures

Energy consumption within
the organization

160

Metric tables: environmental performance, greenhouse gas

250

Metric tables: historical metrics, environmental footprint;
environmental performance, energy
Climate and energy
Metric tables: historical metrics, environmental footprint;
environmental performance, energy
Climate and energy
Metric tables: environmental performance, greenhouse gas

160
250
160
250
160
250

Water

154

Water

154

Metric tables: environmental performance, water

250

Water sources signiﬁcantly
aﬀected by withdrawal of
water

Water

154

Metric tables: environmental performance, water

250

Water recycled and reused

Metric tables: environmental performance, water250

Climate and energy

160

Climate and energy

160

Metric tables: historical metrics, environmental footprint;
environmental performance, greenhouse gas

250

Climate and energy

160

Metric tables: historical metrics, environmental footprint;
environmental performance, energy, and greenhouse gas

250

Climate and energy

160

Metric tables: environmental performance, energy, andgreenhouse gas

250

Antitrust and Competition Principle
Antitrust and Competition Principle

SDG 16

Annual Report, 10-K, pages 109-121

GRI 305: Emissions

Cross-reference (hyperlinks) or direct answer

Page(.pdf)GRI 302: Energy103-1 to103-3

Climate and energy

Connections toUnited Nations
Initiatives*

GRI 303: Water

Topic specific standards, 300 environmental
Disclosure
numberPage(.pdf)

SDG 16

GRI 206: Anti-competitive behavior
103-1 to103-3

Cross-reference (hyperlinks) or direct answer

Climate and energy

GRI 205: Anti-corruption
103-1 to103-3

#improvinglives

3M 2019 Sustainability Report

Climate and energy

Connections toUnited Nations
Initiatives*103-1 to103-3

Management approach
disclosures

305-1

Direct (Scope 1) GHG
emissions

305-2

Energy indirect (Scope 2)
GHG emissions

305-3

Other indirect (Scope 3)
GHG emissions

160

Climate and energy

160

Metric tables: historical metrics, environmental footprint;
environmental performance, energy

250

233

About report

Disclosure
number

305-4

305-5

305-6

305-7

Indices

Description

GHG emissions intensity

Reduction of GHG
emissions

Emissions of ozonedepleting substances (ODS)
Nitrogen oxides (NOx),sulfur oxides (SOx),
and other significant air
emissions

Cross-reference (hyperlinks) or direct answer

Page(.pdf)

Climate and energy

160

Metric tables: historical metrics, environmental footprint;
environmental performance, greenhouse gas

250

Climate and energy

160

Metric tables: historical metrics, environmental footprint;
environmental performance, greenhouse gas

250

Climate and energy

160

Metric tables: historical metrics, environmental footprint;
environmental performance, air emissions

250

Climate and energy

160

Metric tables: historical metrics, environmental footprint;
environmental performance, air emissions

250

GRI 306: Effluents and waste

103-1 to
103-3

306-2

306-3

Management approach
disclosures

Waste by type and disposal
methodSigniﬁcant spills#improvinglives

3M 2019 Sustainability Report

Environmental management142

Raw materials

148

Water

154

Environmental management142

Raw materials

148

Metric tables: historical metrics, environmental footprint;
environmental performance, waste

250

Environmental management

142

Metric tables: environmental footprint, environmental
management

250

Connections toUnited Nations
Initiatives*

Disclosure
numberDescription

Cross-reference (hyperlinks) or direct answer

Page(.pdf)

Suppliers

176

Connections toUnited Nations
Initiatives*

GRI 308: Supplier environmental
103-1 to103-3

Management approach
disclosures308-1

New suppliers thatwere screened using
environmental criteria

Suppliers

308-2

Negative environmental
impacts in the supply chain
and actions taken

Suppliers

Supplier Responsibility Code176

Supplier Responsibility Code176

Supplier Responsibility Code

Topic specific standards, 400 social
Disclosure
numberDescription

Cross-reference (hyperlinks) or direct answer

Page(.pdf)

Connections toUnited Nations
Initiatives*

GRI 401: Employment103-1 to103-3

Management approach
disclosures

Employee programs

124

Employee programs

124

401-1

New employee hires andemployee turnover

401-2

Beneﬁts provided to fulltime employees that are notprovided to temporary or
part-time employees

Employee programs

124

401-3

Parental leave

Employee programs

124

Confidentiality constraints, we can provide total turnover rate
under 6 percent, but not able to provide breakdown by age
group, gender, and region.

Annual Report, 10-K, pages 109-121

GRI 307: Environmental compliance103-1 to
103-3

307-1

Management approach
disclosures

Non-compliance withenvironmental laws andregulations

Environmental management

142

Environmental management

142

Metric tables: environmental footprint, environmental
management

250

Annual Report, 10-K, pages 109-121

234

GRI 402: Labor, management relations
103-1 to103-3

Management approach
disclosures

Employee programs

124

402-1

Minimum notice periods
regarding operationalchanges

Employee programs

124

235

About report

Disclosure
numberIndices

Description

Cross-reference (hyperlinks) or direct answer

3M 2019 Sustainability ReportPage(.pdf)

Connections toUnited Nations
Initiatives*

Disclosure
numberDescription

GRI 403: Occupational health and safety#improvinglives

Cross-reference (hyperlinks) or direct answer

Page(.pdf)

Corporate governance88

Connections toUnited Nations
Initiatives*

Corporate Officers
103-1 to
103-3

403-1

403-2

Management approach
disclosures

Health and safety

Workers representation informal joint management–
worker health and safetycommittees

Health and safety

Types of injury and rate of
injury, occupational diseases,
lost days, and absenteeism,and number of work-related
fatalities

Not applicable, disclosure does not cover the specificimpacts that make the topic material. The 3M Safety and
Health Policy applies to 3M operations everywhere, including
new acquisitions. Hazards in 3M’s workplaces must be wellunderstood and eﬀectively managed to protect 3M employees,
visitors, locations, and surrounding communities.
In addition, in the spirit of continuous improvement, muchis being done to evaluate opportunities to raise our safety
standards. For these reasons we track and disclose global
lost time incident rate, high hazards, recordable incident rate,
recordable incident rates by category, and fatalities.

136

405-1

Diversity of governancebodies and employees

136

Board of Directors
Employee diversity and inclusion

72

Employee programs

124

Human rights

110

GRI 406: Non-discrimination
103-1 to103-3

Management approach
disclosures

Respectful Workplace Principle

GRI 407: Freedom of association and collective bargaining
3M Supplier Responsibility Code403-3

Workers with high incidenceor high risk of diseases
related to their occupation

Health and safety

136

403-4

Health and safety
topics covered in formal
agreements with tradeunionsHealth and safety

136

103-1 to103-3

Management approach
disclosures

407-1

Operations and suppliers inwhich the right to freedomof association and collective
bargaining may be at risk

Human rights

110

Suppliers

176

3M Supplier Responsibility CodeGRI 404: Training and education

Human rights

110

Suppliers176

Supplier Responsibly Expectations
103-1 to103-3

Management approach
disclosures

Employee programs

124

404-1

Average hours of training peryear per employee

Employee programs

124

404-2

Programs for upgrading
employee skills and transition
assistance program

Employee programs

404-3

Percentage of employees
receiving regularperformance and careerdevelopment reviews

3M Supplier Responsibility Code103-1 to103-3

Employee programs

236Management approach
disclosures

Management approach
disclosures

124

124

Human rights

110

Suppliers176

Supplier Responsibly Expectations
408-1

Operations and suppliers at
significant risk for incident ofchild labor

Suppliers

176

3M Supplier Responsibility CodeGRI 409: Forced or compulsory labor

GRI 405: Diversity and equal opportunity

103-1 to103-3

GRI 408: Child labor

Corporate governance88

Employee diversity and inclusion

72

Employee programs

124

3M Supplier Responsibility Code103-1 to103-3

Management approach
disclosures

Human rights

110

Suppliers

176

237

About report

Disclosure
numberIndices

Description

Cross-reference (hyperlinks) or direct answer

3M 2019 Sustainability ReportPage(.pdf)

Connections toUnited Nations
Initiatives*

Disclosure
numberDescription

3M Supplier Responsibility Code409-1

Operations and suppliers at
significant risk for incidents
of forced or compulsory
labor

Human rights

110

Suppliers

176

413-1

Supplier Responsibly Expectations

Operations with local
community engagement,
impact assessments, anddevelopment programs

GRI 410: Security practices
103-1 to103-3

Management approach
disclosures

410-1

Security personnel trainedin human rights policies orprocedures

Human rights

Human rights

110

110

413-2

GRI 411: Rights of indigenous peoples

Operations with significant
actual and potential
negative impacts on local
communities

3M Supplier Responsibility Code103-1 to
103-3

411-1

Management approach
disclosures

Incidents of violations
involving rights of indigenous
peoples

Human rights

110

Suppliers176

To the best of our knowledge, there were no incidents reported
to Compliance and Business Conduct Department related to therights of indigenous people in 2018.

#improvinglives

Cross-reference (hyperlinks) or direct answer

Page(.pdf)

Communities

64

Raw materials

148

Water

154

Climate and energy

160

Suppliers

176

Code of Conduct

100

Enterprise risk

96

Human rights

110

Environmental management

142

Climate and energy

160

Water

154

Suppliers

176

Connections toUnited Nations
Initiatives*

GRI 414: Supplier social assessment
103-1 to103-3

Management approach
disclosures

Suppliers

176

414-1

New suppliers that werescreened using social criteria

Suppliers

176

414-2

Negative social impacts inthe supply chain and actions
taken

Suppliers176

Corporate governance88

GRI 412: Human rights assessment
103-1 to103-3

Management approach
disclosures

Human rights

110

412-1

Operations that havebeen subject to humanrights reviews or impact
assessments

Human rights

110

412-2

Employee training on humanrights policies or procedures

Human rights

110

GRI 415: Public policy
103-1 to103-3

GRI 413: Local communities

103-1 to
103-3

238

Management approach
disclosures

Communities

64

Human rights

110

Environmental management142

Raw materials

148

Water

154

Climate and energy

160

Suppliers

176

Management approach
disclosures

Lobbying and Political Activities
Corporate governance

415-1

Political Contributions

88

Lobbying and Political Activities
Political Activities and Issue Advocacy

GRI 416: Customer health and safety

103-1 to103-3

Management approach
disclosures

Our customers

192

Innovation management

198

Product Safety, Quality and Stewardship Principle

239

About report

Disclosure
numberIndices

Description

3M 2019 Sustainability Report

Cross-reference (hyperlinks) or direct answer

Page(.pdf)

Our customers

192

Innovation management

198

Connections toUnited Nations
Initiatives*

GRI 417: Marketing and labeling103-1 to103-3

Management approach
disclosures

Product Safety, Quality and Stewardship Principle

GRI 418: Customer privacy
103-1 to103-3

Management approach
disclosures

Management approach
disclosures

SASB
index

Data Privacy Principle

SASB index

3M Global Privacy Policy

GRI 419: Socioeconomic compliance103-1 to103-3

Dimension
Corporate Code of Conduct

100

General issue category

Environment
GHG emissions

419-1

Non-compliance with laws
and regulations in the socialand economic area

Significant legal actions for non-compliance with laws andregulations in the social and economic area would be discussed
in our Annual Report, 10-K, pages 109-121
Air quality* United Nations Global Compact Principles* United Nations Sustainable Development Goals

Energy management

Water and wastewater
management

Waste and hazardous
materials management

Ecological impacts

240#improvinglives

Cross-reference (hyperlinks) or direct answer

Page (.pdf)

Climate and energy

160

Metric table, historical metrics; environmental performance,
greenhouse gas and energy

250

Climate and energy

160

Metric table, historical metrics; environmental performance, air
quality

250

Climate and energy

160

Metric table, historical metrics; environmental performance,
greenhouse gas and energy

250

Environmental management

142

Water

154

Metric table, historical metrics; environmental performance, water

250

Environmental management142

Raw materials

154

Metric table, historical metrics; environmental performance, waste

250

Environmental management142

Raw materials

148

Water

154

Climate and energy

160

Suppliers

176

Metric table, historical metrics; environmental performance

250

241

About report

Dimension

SASB index

General issue category

Social capital
Human rights and community
relations

3M 2019 Sustainability Report

Cross-reference (hyperlinks) or direct answer

Page (.pdf)

Dimension

General issue category

Cross-reference (hyperlinks) or direct answer

Page (.pdf)

Corporate Code of Conduct

100

198

176

Product design and lifecycle
management

Innovation management

Suppliers

Business modeland innovation

Enterprise risk

96

Human rights

110

Our customers

192

Innovation management

198

Our products

210

Suppliers

176

Business model resilience

Ethics and compliance

Customer privacy

Corporate Code of Conduct

100

Enterprise risk

96
Supply chain management

3M Global Privacy Policy
Annual Report, 10-K, page 11

Data security
Access and affordability

Product quality and safety

Customer welfareEnterprise risk

96

Materials sourcing andefficiency

Annual Report, 10-K, page 11
192

Our customers

192

Innovation management

198

Our products

210

Our customers

192

Innovation management

198

Competitive behavior

Our customers

192

Management of legal andregulatory environmental

Innovation management

198

Physical impacts of climatechangeLeadership andgovernanceBusiness ethics

Product Safety, Quality and Stewardship Principle
Advertising and Product Representation Policy

Human capital

Labor practices

Corporate Code of Conduct

100

Human rights

110

Suppliers

176

Critical incident risk
management

Ethics and compliance
System risk management

Supplier Responsibility Code

Employee health and safety

Employee engagement,
diversity and inclusion

242

Health and safety

136

Metric table, historical metrics; health and safety

250

Communities

64

Employee diversity and inclusion

72

Supplier Responsibility CodeRaw materials

148

Suppliers

176

Annual Report, 10-K, page 26

Our customers

Product Safety, Quality and Stewardship Principle

Selling products andproduct labeling#improvinglives

Climate and energy

160

Annual Report, 10-K, page 10
Corporate Code of Conduct

100

Ethics and complianceCorporate Code of Conduct

100

Antitrust and Competition Principle
Environmental management

142

Annual Report, 10-K, page 7, 12, 110-120
Global challenges

52

Corporate governance

88

Enterprise risk

96

Environmental management

142

Health and safety

136

Suppliers

176

Enterprise risk

96

Annual Report, 10-K, page 10-12, 110-120

For additional details on SASB integration for this report, see the about report section.

243

About report

Assurance statement

Assurancestatement

3M 2019 Sustainability Report#improvinglives

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 2019 3M Sustainability Report (the Report). This
Assurance Statement applies to the related information included within the scope of work
described below and within the boundaries specified in the Report. The intended users of theassurance statement are the stakeholders of 3M. The overall aim of this process is to provide
assurance to 3Mʼs stakeholders on the accuracy, reliability and objectivity of the information
included in the Report as described in the scope of work. The assurance process also evaluated3Mʼs management of sustainability in accordance 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 2018 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 Cordova, IL; Cynthiana, KY; and Knoxville, IA;
5. Remote data reviews for manufacturing sites located in Brockville, ON, Canada;
Shanghai, China; and Wroclaw, Poland;
6. Visit to 3M headquarters office located in Maplewood, Minnesota; and1 Published by AccountAbility: The Institute of Social and Ethical Accountability

244

245

About report

Assurance statement

3M 2019 Sustainability Report#improvinglives

7. Review of 3M data and information systems for collection, aggregation, analysis andinternal verification and review.



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.

The work was planned and carried out to provide a moderate level of assurance and we believe
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 to work within their supply chain, specifically with paper providers, to engage
higher Tier suppliers to ensure sustainable practices are being followed.

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, specifically supporting underserved and underresourced populations. 3M provides community support through various engagements inthe community. Corporately, the 3M Foundation provides funding to targeted non-profit
organizations in the U.S. and within their global footprint. 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 a fair
representation of the actual environmental and health and safety data for calendar year
2018.



It is our opinion that 3M has established appropriate systems for the collection,
aggregation and analysis of quantitative data, including energy use, direct and indirect
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 2018 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 2018,
3M commissioned a third party provider to update their materiality assessment and used thatassessment to identify and engage stakeholders. Some of the stakeholder groups that 3M has
identified to include in their sustainability processes include 3M employees, customers, nongovernmental organizations, investors and the public.
Materiality
3M updated their materiality assessment in 2018. During the materiality assessment
stakeholders indicated that 3M should take a leadership role. The Chief Technology Officer
and Chief Sustainability Officer report annually to the Boardʼs Nominating and GovernanceCommittee on their sustainability efforts. In addition, their Corporate EHS and BusinessConduct Committee ensures that sustainability principles are embedded throughout thecompany. Background information can be found in the 3M proxy statement:

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 in providing
independent assurance services, and an annual 2018 revenue of 4.8 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:

John A. Rohde Lead Verifier
Senior Project Manager

Sustainability and Climate Change Services

Trevor Donaghu, Technical Reviewer

Program Manager

Climate Change Services

https://investors.3m.com/financials/sec-filings/sec-filingsdetails/default.aspx?FilingId=13322342
Responsiveness3M receives questions regarding sustainability from customers, investors, non-governmentalorganizations and others through various channels. The company has guidance for responding
to customer inquiries on sustainability issues and uses this guidance for responding to othergroups as well. Responses to surveys are coordinated by the corporate sustainability group.
Each business group also has sustainability leads who assist with responding to stakeholders.
In addition, through the materiality assessment, 3M is building out a strategy for futuresustainability efforts.

Bureau Veritas North America, Inc.
Denver, Colorado
April 10, 2019

Key Observations for 2018246

Data systems at 3M allow for consolidation and review of environmental, safety, andenergy data at the corporate level for reporting. Internal auditing assists with ensuring
accurate data collection.
247

About report

Assurance statement

3M 2019 Sustainability Report#improvinglives

Summary of Assured Information
Reporting Year 2018
3M Company

Demographic Metrics

Units

Waste Metrics

Units

Value

Energy Metrics

93,500

Zero Landfill% of Total
Manufacturing Sites

30.4%

Total Energy Use (Absolute)

Total Number

94,300Waste Disposed: Landfill, Treatment andIncineration (Absolute)

Metric Tons

151,000

Total Number Part‐Time Employees

Total Number

2,100

Waste by Disposal Type, Incineration

Metric Tons

Total Number Full‐Time Employees

Total Number

92,200Waste by Disposal Type, Landfilled

Percentage of Female Employees to Total
Employees%

35.4

Percentage of Female Employees inManagement Positions

%

30.3

Total Global Full‐time Equivalent(Headcount)

Total Number

Total Global Employees at Year‐End(Headcount)

Environmental Management System
Metrics
Total Number of Significant Spills(Spills reported in 10K reporting)

Units

Value

Value

Units

Value

Air Emissions Metrics

Units

Value

MMBTUs29,900,000

Absolute Scope 1 Emissions (Direct)

Metric Tons CO2e

4,790,000

Total Energy Use (Absolute)MWh8,750,000

Absolute Scope 2 Location‐based Emissions
Metric Tons CO2e
(Indirect)

1,860,000

43,600Total Fuel Oil #1, #2, #6

MMBTUs1,110,000

Absolute Scope 2 Market‐based Emissions(Indirect)

Metric Tons CO2e

1,480,000

Metric Tons

108,000

Total Jet FuelMMBTUs104,000

Absolute Scope 1 and Scope 2 Market‐
based Emissions (Indirect)

Metric Tons CO2e6,270,000

Total Hazardous Waste (Absolute)

Metric Tons

43,400Total Propane

MMBTUs

194,000

Total Scope 3 GHG Emissions (Upstream)

Metric Tons CO2e9,630,000

Total Nonhazardous Waste (Absolute)

Metric Tons

187,000

Total Gasoline and Diesel

MMBTUs

182,000

Category 1 ‐ Purchased Goods and Services Metric Tons CO2e

6,840,000

Total Waste Diverted (Absolute)

Metric Tons

312,000

Total Coal

MMBTUs0Category 2 ‐ Capital Goods

Metric Tons CO2e369,000

Total Number

0

Waste‐to‐Energy

Metric Tons

79,100Total Natural Gas

MMBTUs

16,200,000

Category 3 ‐ Fuel and Energy Related
Activities

Metric Tons CO2e596,000

Number of Significant Fines (Fine or penalty
Total Number>$10,000)0

Onsite Recycle & Reuse

Metric Tons

63,300Total Electricity Consumption

MMBTUs10,800,000

Category 4 ‐ Upstream Transportation andDistribution

Metric Tons CO2e

1,170,000

Total Monetary Value of Significant Fines

Million $USD

0

Offsite Reuse

Metric Tons

32,900Total Steam Consumption

MMBTUs1,260,000

Category 5 ‐ Waste Generated in Operations Metric Tons CO2e

271,000

Environmental Liability Accrued at Year End Million $USD

0

Offsite Recycle

Metric Tons

137,000

Renewable Energy% Total Electricity Use

Category 6 ‐ Business Travel

Metric Tons CO2e61,600

Units

Value

Water Metrics

Category 7 ‐ Employee Commuting

Metric Tons CO2e

327,000

Global Lost Time Incident Rate

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

0.29

Total Water Use (Absolute)

Category 13 ‐ Downstream Leased Assets

Metric Tons CO2e<1000

Global Recordable Incident Rate

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

1.1

Sites located in Water Stress/Scarce Areas;water sources significantly affected bywithdrawal of water with water

Work Related Fatalities ‐ 3M Employees

Total Number

0Work Related Fatalities ‐ 3M Contractors

Total Number

1

Total Number of SuppliersWork Related Fatalities ‐ Total Number

Total Number

1

Total Number of Supplier Reviews

Health and Safety Metrics

248

Supplier Responsibility Metrics

Units

Value

Million Cubic Meters

45.8

Total Number

25

Customer GHG Avoidance through 3M
Product Use

Units

Value

Total Training Instances 2017 and 2018)

Total Number

78,700

Cumulative Number
since 2008

6,350

Other Metrics

Units
Million Metric Tons
CO2e

26.8

Value
14.9

Total Volatile Organic Compound Emissions
Metric Tons
(Absolute)

4,420

139,000249

About report

Metric tables

MetrictablesFive-year metric table
Social performance employees
Financial performance
Community engagement
Environmental performance--Environmental management system metrics#improvinglives

3M 2019 Sustainability ReportSocial performance, employees
MetricMetricunits

RY-2014

RY-2015

RY-2016

RY-2017

RY-2018

2017-2018
annualchange, %2014-2018
five-yearchange, %Global full-time
equivalent employees

Total
number

89,80089,40091,60091,50093,500

2.19

4.12

Global employee(headcount)Total
number

90,70090,40092,50092,40094,3002.06

3.97

Total number
part-time employees

Total
number

2,560

2,520

2,390

2,330

2,100

-9.87

-18.0

Total number
full-time employees

Total
number

88,20087,90090,10090,00092,2002.44

4.54

Percentage offemale employees
to total employees

%

33.9

33.9

34.8

34.7

35.4

2.02

4.42

Percentage offemale employees inmanagement positions

%

26.1

26.9

27.8

29.1

30.3

4.12

16.1

--Greenhouse gas metrics--Air emissions metrics--Energy metrics--Waste metrics

Financial performance--Water metrics

Health and safety metrics
Supplier responsibility metrics

Historical metric table

MetricMetricunits

RY-2014

RY-2015

RY-2016

RY-2017

RY-2018

2017-2018
annualchange, %2014-2018
five-yearchange, %Net sales

Million$USD

31,80030,30030,10031,70032,8003.47

3.14

Operating income1

Million
$USD

6,980

7,030

7,690

7,210

-6.24

Research,development andrelated expenses1

Million
$USD

1,760

1,760

1,870

1,820

-2.67

Total operating
expenses1

Million$USD

23,30023,10024,00025,6006.67

Net income
attributable to 3M

Million
$USD

4,960

4,830

5,050

4,860

5,350

10.1

7.86

Per share-basic

Actual
$USD

7.63

7.72

8.35

8.13

9.09

11.8

19.1

Environmental Footprint
Health and Safety

250

251

About report

Metric tables

Financial performance cont.
Metricunits

Metric#improvinglives

3M 2019 Sustainability Report

Environmental performance

RY-2014

RY-2015

RY-2016

RY-2017

RY-2018

2017-2018
annualchange, %2014-2018
five-yearchange, %Environmental
management
system - metric

Metricunits

RY-2014

RY-2015

RY-2016

RY-2017

RY-2018

0

0

0

0

0

2017-2018
annualchange, %2014-2018
five-yearchange, %Per share-diluted

Actual
$USD

7.49

7.58

8.16

7.93

8.89

12.1

18.7

Total number ofsignificant spills

Total
numberCapitalexpenditures

Million
$USD

1,490

1,460

1,420

1,370

1,580

15.3

6.04

Number ofsignificant fines

Total
number

Payments toproviders of capitalMillion
$USD

2,390

2,700

2,870

3,020

3,520

16.6

47.3

Total monetary value ofsignificant fines

Million
$USD

0.113

0

0

0.09000.000

Provision forincome taxes

Million
$USD

2,030

1,980

2,000

2,680

1,640

-38.8

-19.2

Environmental liability
accrued at year end

Million
$USD

0

0

0

0

0

Greenhouse gas - metric

Metricunits

RY-2014

RY-2015

RY-2016

RY-2017

RY-2018

2017-2018
annualchange, %2014-2018
five-yearchange, %Absolute Scope 1
emissions (direct)

Metric tons
CO₂e4,390,000

3,770,000

4,140,000

3,960,000

4,790,000

21.0

9.11

Absolute Scope 2
location-based emissions(indirect)

Metric tons
CO₂e2,240,000

1,860,000

1,840,000

1,880,000

1,860,000

-1.06

-17.0

Absolute Scope 2 marketbased emissions (indirect)

Metric tons
CO₂e1,780,000

1,650,000

1,480,000-10.3

Total Scope 1 and 2
GHG emissions:market-based accounting

Metric tons
CO₂e5,920,000

5,610,000

6,270,000

11.8

Total GHG emissions(indexed to net sales,
location-based)

Metric tons
per netsales (MM
$USD)

199

184

203

10.3

Customer GHG reduction
through use of various 3M
product platforms

Millionmetric tons
CO₂e

13.4

13.0

14.9

14.6

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 to 2015 have not been reclassified.

Community engagement
MetricTotal global
givingMetricunits

Million$USD

RY-201481.3

RY-2015

72.8

RY-2016

67.3

RY-201773.5

RY-2018

66.3

2017-2018
annualchange, %-9.80

2014-2018
five-yearchange, %-18.5

Total cash
donations

Million
$USD

30.3

34.1

34.8

35.9

35.6

-0.836

17.5

Total in-kind
donations

Million
$USD

51.0

38.4

32.5

37.6

30.7

-18.4

-39.8

Significant spill: Spills included in the organization’s financial statement
1

0

0

2

0

Significant fine: Fine or penalty over $10,000

208

186

For more information, see
our Annual Report, 10k,
pages 109-121.

-2.40

Net GHG emissions based on the categories evaluated. Due to change in boundaries, Scope 3 upstream emissions should not be comparedon a year-on-year basis. Baseline reporting year has not been established for our Scope 3 emissions. Additional changes occurred to calculation
methods for Scope 1 and 2 limiting comparison between reporting year 2018 and other inventory years; see about report section for additional
information.

252

253

About report

Metric tables

Environmental performance cont.
Greenhouse gas - metric

Total Scope 3
emissions (upstream)

Metricunits

Metric tons
CO₂e

RY-20149,200,000

Environmental performance cont.

RY-2015

8,670,000

RY-2016

9,540,000

RY-20179,400,000

RY-2018

Metric tons
CO₂e

All downstream categories either do not apply or are de minimis.

Scope 3, Category 1(purchased goods andservices)

Metric tons
CO₂e6,830,000

6,200,000

7,120,000

6,570,000

6,840,000

Scope 3, Category 2(capital goods)

Metric tons
CO₂e499,000

452,000

423,000

436,000

369,000

Scope 3, Category 4(upstream transportationand distribution)

Scope 3, Category 5 (waste
generated in operations)

Scope 3, Category 6(business travel)

Scope 3, Category 7(employee commuting)254

Metric tons
CO₂eMetric tons
CO₂eMetric tons
CO₂eMetric tons
CO₂eMetric tons
CO₂e551,000

995,000

Insufficientdata

Insufficientdata

326,000

621,000

780,000

287,000

Insufficientdata

325,000

607,000

699,000

299,000

59,300332,000

631,000

1,050,000

323,000

60,700332,0002017-2018
annualchange, %2014-2018
five-yearchange, %Greenhouse gas - metric

Metricunits

RY-2014

Scope 3, Category 8(upstream, leased assets)

Metric tons
CO₂eIncluded in Scope 1 or Scope 2 emissions reporting.

Scope 3, Category 9(downstream transportationand distribution)

Metric tons
CO₂e

Scope 3, Category 10(processing of soldproducts)

Metric tons
CO₂e

Scope 3, Category 11(use of sold products)

Metric tons
CO₂e

Scope 3, Category 12 (endof life treatment of soldproducts)

Metric tons
CO₂e

RY-2015

RY-2016

RY-2017

RY-2018

596,000

1,170,000

271,000

61,600327,000

Methodology updated to
calculate values based on
3M spend using U.S. EPA
EEIO factors.

Calculated from 3M
primary data on energy
consumption.

Emissions disclosed in2014 were miscategorized
as Category 9; data does
not include emissions
from transportation of raw
materials from suppliers.
Calculated from 3M
primary data on waste byfacility size or number of
employees. Methodology
for determining facility
type changed resulting
in change to past years’
results, see about reportsection for more details.
Calculated from 3M
primary data on businesstravel. Calculations havechanged, see about reportsection for details.
Methodology updated
to calculate values
based on 3M employee
headcount with U.S. EPA
GHG emission factors.
All historical values
recalculated.

2017-2018
annualchange, %2014-2018
five-yearchange, %These emissions areincluded in Scope 1 and 2,
because they are all under
3M operational control.

9,630,000

Total Scope 3
emissions (downstream)

Scope 3, Category 3(fuel and energy
related activities; notincluding Scope 1 or
Scope 2 emissions)#improvinglives

3M 2019 Sustainability Report

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 the various
end uses of the intermediate products.

Scope 3, Category 13(downstream leased assets)

Metric tons
CO₂eIncludedin Scope 1
or Scope 2
emissions
reporting.

Scope 3, Category 14(franchises)

Metric tons
CO₂e

0

0

0

0

0

No franchises under thisscope of boundary.

Scope 3, Category 15(investments)

Metric tons
CO₂e

0

0

0

0

0

No investments under thisscope of boundary.

Biogenic CO₂ emissions

Metric tons
CO₂e<1,000<1,000<1,000<1,000Prior to 2015, 3M
reported facilities leased
to third parties under
Scope 1 and 2.

3,080

The data reported is in accordance to the World Resources Institute (WRI)/World Business Council for Sustainable Development (WBCSD)
Corporate Value Chain (Scope 3) Accounting and Reporting Standard.
Estimated Scope 3 data uncertainty is ±50% (WRI/WBCSD, GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard,2011).
Scope of boundary for the GHG metric is determined using the control approach to GHG emissions accounting as defined in the GHG Protocol
Corporate Reporting and Accounting Standard. Additional information can be found in the about report section.
2017-2018
annualchange, %2014-2018
five-yearchange, %

4,420

-4.33

-20.4

0.135

-7.53

-22.6

Air emissions - metric

Metric units

RY-2014

RY-2015

RY-2016

RY-2017

RY-2018

Total volatile organic
compound emissions(absolute)

Metric tons

5,550

4,840

4,690

4,620

Total volatile organic
compounds emissions(indexed to net sales)

Metric tons
per net sales(MM $USD)

0.174

0.160

0.156

0.146

255

About report

Metric tables

Environmental performance cont.

Environmental performance cont.

Energy - metric

Metricunits

RY-2014

RY-2015

RY-2016

RY-2017

RY-2018

Total energy use(absolute)

MMBtu

29,100,000

28,400,000

29,000,000

29,600,000

29,900,000

2017-2018
annualchange, %1.01
Total energy use(absolute)MWhTotal energy(indexed to
net sales)

MMBTUsper net sales(MM $USD)

Renewableenergy% of total
electricity
use

Total fuel oil#1, #2, #6

MMBtu

Total jet fuelMMBtu

8,850,000

913

1,630,000

161,000

8,320,000

937

8,490,000

962

8,670,000

935

911

-2.57

7.60

17.9

26.8

49.7

1,330,000

1,200,000

1,130,000

1,110,000-1.77

159,000

138,000

2014-2018
five-yearchange, %104,000-24.6-0.219

-31.9

-35.4

Total propane

MMBtu

192,000

170,000

190,000

177,000

194,000

9.60

1.04

Total gasoline
and diesel

MMBtu

209,000

270,000

155,000

155,000

182,000

17.4

-12.9

Total coal

MMBtu

0

0

0

0

0

Total natural gas

MMBTUs15,900,000

14,700,000

15,400,000

15,700,000

16,200,000

3.18

Total electricity
consumption

MMBtu

11,100,000

10,600,000

10,700,000

11,100,000

10,800,000

Total steam
consumption

MMBtu

1,010,000

1,130,000

1,180,000

1,220,000

1,260,000

Total heating
consumption

MMBtu

19,100,000

17,700,000

18,300,000

18,500,000

19,000,000

MWh5,590,000

5,190,000

5,360,000

5,430,000

Metric units

Zero landfill% of total
manufacturing
sites

Waste disposed:
landfill, treatment
and incineration(absolute)

Metric tons

Waste disposed:
landfill, treatment andincineration (indexed
to net sales)

RY-20142017-2018
annualchange, %2014-2018
five-yearchange, %RY-2015

RY-2016

RY-2017

RY-2018

28.2

26.6

27.9

30.4

8.96

153,000

158,000

161,000

160,000

151,000

-5.63

-1.31

Metric tons
per net sales(MM $USD)

4.80

5.23

5.33

5.07

4.62

-8.88

-3.75

Waste by disposal
type, incineration

Metric tons

44,20045,20044,10045,20043,600

-3.54

-1.36

Waste by disposal
type, landfilled

Metric tons

109,000

112,000

116,000

115,000

108,000-6.09-0.917% data coverage total
waste (absolute),
normalized to sales
value of production(SVOP)

%

98

97

98

98

99

1.02

1.02

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

41,10045,60043,60043,90043,400

-1.14

5.60

1.89

Total nonhazardous
waste (absolute)

Metric tons

164,000

172,000

180,000

188,000

187,000-0.532

14.0

-2.70

-2.70

Total waste diverted(absolute)

Metric tons

287,000

297,000

284,000

307,000

312,000

1.63

8.71

3.28

24.8

Waste-to-energy

Metric tons

51,90060,10063,10071,60079,10010.5

52.4

Onsite recycle
and reuse

Metric tons

69,50065,50056,70060,40063,300

4.80

-8.92

Offsite reuse

Metric tons

31,90031,30027,60031,50032,900

4.44

3.13

Offsite recycle

Metric tons

134,000

139,000

137,000

143,000

137,000

-4.20

2.24

Deep well injection

Per 3M’s Waste Management Program Standard, deep well injection is not acceptable waste management
practice for use by any 3M location.

2.70
Total heating
consumption

Waste - metric

2.75

8,750,000

0.50

153,000#improvinglives

3M 2019 Sustainability Report-0.5245,570,000

Scope of boundary for the energy metric includes 3M locations larger than 30,000 square feet. Additional scope information can be found in theabout report section.

Scope of boundary for the waste metric includes 3M manufacturing locations with total output over 4.54 metric tons per year (10,000 pounds).
Additional scope information can be found in the about report section.

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Metric tables#improvinglives

3M 2019 Sustainability Report

Environmental performance cont.

Health and safety

Water - metric

Metric units

RY-2014

RY-2015

RY-2016

RY-2017

RY-2018

2017-2018
annualchange, %2014-2018
five-yearchange, %Total water use(absolute)

Million cubic
meters

42.5

42.2

44.8

46.0

45.8

-0.435

7.76

Total water use(indexed to net sales)

Million cubic
meters per
net sales (MM$USD)

0.001340.001390.001490.001450.00140

-3.45

4.48

2017-2018
annualchange, %2014-2018
five-yearchange, %

0.292

-14.4

-17.7

1.16

1.10

-5.17

-24.1

1

0

0

0

0

1

1

0

1

1

1

RY-2015

RY-2016

RY-2017

RY-2018

2017-2018
annualchange, %2014-2018
five-yearchange, %MetricMetric units

RY-2014

RY-2015

RY-2016

RY-2017

RY-2018

Global losttime incident
rate

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

0.355

0.321

0.304

0.341

Globalrecordable
incident rate

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

1.45

1.22

1.20

Scope of boundary for the water metric includes 3M manufacturing locations with total output over 4.54 metric tons per year (10,000 pounds).
Additional information can be found in the about report section.

Work related
fatalities - 3M
employees

Total number00Sites located inwater stress/scarceareas; water sources
significantly affectedby withdrawal ofwater with water
conservation
planning efforts

Work related
fatalities - 3M
contractors

Total number

0Work related
fatalities total number

Total number0

Total number

27

25

25

25

25

0.00

-7.41

Scope of boundary for water stressed/scarce areas includes 3M locations with annual water use equal to or greater than 1,000 cubic meters
were in water-stressed areas defined by the extremely high baseline water stress value according to the World Business Council for Sustainable
Development (WBCSD) Global Water ToolTM. 3M uses this tool to screen site locations for water stress/scarce levels and prioritizes conservation
plan development based on internal criteria.

Supplier responsibility

258

MetricMetric units

RY-2014

Total numberof suppliers

Total number

95,80098,50088,20085,10078,700

-7.52

-17.8

Total numberof supplierreviews

Cumulative
number (since
2008)

3,880

4,570

5,120

5,790

6,350

9.67

63.7

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About report

Metric tables

3M historical metrics

3M historical metrics cont.

MetricMetric units

RY-2002

RY-2005

RY-2010

RY-2015

RY-2018

Historical
reportingchange, %Net sales

Million $USD

16,30026,70029,60030,30032,800101...

Environmental footprint
Absolute Scope 1
emissions (direct)

Metric Tons
CO₂e16,800,000 10,100,000 4,280,000

Absolute Scope 2
location-based emissions(indirect)

Metric Tons
CO₂e1,540,000

Total Scope 1 and Scope 2
greenhouse gas emissions(indexed to net sales, locationbased)

Metric Tons per
Net Sales (MM
$USD)

1,120

1,700,000

559

1,940,000

233

3,770,000

1,860,000

186

4,790,000

1,860,000

203

-71.5

Metric tons

Total volatile organic compounds
emissions (indexed to net sales)

Metric tons per
net sales (MM$USD)

Total energy use (absolute)

MMBtu

6,800

0.321

6,070

0.228

4,800

0.158

4,420

0.135

MWh

Total energy(indexed to net sales)

Metric units

RY-2002

RY-2005

RY-2010

RY-2015

RY-2018

Historical
reportingchange, %Environmental footprint cont.

Total hazardous waste (absolute)

Metric tons

47,70042,30045,60043,400-9.01

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

45.8

-6.53.

Total water use(indexed to net sales)

Million cubic
meters per net
sales(MM $USD)

0.002310.001610.001390.00140-39.4.

Global lost time
incident rate

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

0.594

0.364

0.321

0.292

-50.8......

Global recordable
incident rate

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

1.85

1.56

1.22

1.10

-40.4......

-81.9.....

-35.0......

-57.9......

27,900,000 26,800,000 28,400,000 29,900,000
7.17

Total energy use (absolute)

Metric20.8

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)#improvinglives

3M 2019 Sustainability Report

8,170,000

7,860,000

8,320,000

8,750,000

MMBtu pernet sales (MM
$USD)

1,320

1,010

937

911

-31.0

Waste disposed: landfill, treatment
and incineration (absolute)

Metric tons

145,000

136,000

158,000

151,000

4.14

Waste disposed: landfill, treatment
and incineration (indexed to net
sales)

Metric tons per
net sales (MM
$USD)

6.83

5.09

5.21

4.62

-32.4......

Health and safety

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.

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