2017 Sustainability Report

We are90,000 employees helping solve some of the world’s
biggest challenges, connected by a single ambition.

#improvinglives
Our Every Life Ambition

34

Global Challenges

38

What We Create

168

Clear Intentions and Cleaner Water in Flint

18

WorldSkills™ Partnerships

31Feature stories
Improving every life10

A desirable location for Millennials

13

Leadership development programs

14

New expanded parental leave benefits

15

15% time

15

We see through the eyes and minds of children

16

Our headquarters campus is always buzzing

17

Innovation with purpose

18

Clear intentions and cleaner water in Flint

18

Solutions for an identity crisis in India

20

We’re up on the roof rethinking solar

21

L.A. cools down city’s urban heat island effect22

Disposable respirator stockpile maintenance program

23

Reducing healthcare packaging footprint

24

Pain relief for incontinence sufferers

24

Net-Zero energy

25

It takes a community

26

3M Legal Affairs pro bono work

27

National Museum of African American History & Culture

28

GlobalGiving

30

WorldSkills™ partnerships

31

Setting ambitious goals

32

Sustainability is nothing new at 3M

32

Renewable energy boost

33

3M and the United Nations Sustainable Development Goals

33

Contents
Our Leadership

Every Life

6

Who We Are

34

How We Work

50

What We Create

About Report

168

76

188

Message from our CEO

7

Introduction

36

Introduction

52

Introduction

78

Introduction

170

Report Scope and Boundaries

190

Message from our CSO

8

Global Challenges

38

Our Corporate Values and Vision

56

Corporate Governance80

Our Customers

172

Indices to GRI and UNGC

194

Materiality

40

Communities

58

Enterprise Risk

86

Innovation Management

178

Assurance Statement206

2025 Goals

46

Engaging Our Stakeholders

66

Corporate Code of Conduct90

Our Products

184

Metric Tables

212

Diversity and Inclusion

70

Human Rights

98

Compensation

106

Employee Programs

110

Health and Safety

120

Environmental Management

128

Raw Materials

134

Water

142

Climate and Energy

146

Suppliers

158

Our Leadership |A message
from Inge G. Thulin
As a company serving a multitude of industries
in nearly every country on the planet, we
1-2
recognize the opportunity we have: to growour business while solving some of the world’s
biggest problems.
G4SD

This requires, first and foremost, collaboration—with
our customers, partners, and stakeholders. It means
understanding the everyday Sustainability challenges
faced by our customers, the important commitments
companies and governments have made, and how all of
this impacts the bigger picture—the large, long-termsocietal issues that must be faced to empower generations to come.

“Today, some of our mostimportant goals serve the needsof everyone on this planet.”– Inge
G. Thulin
Chairman of the Board,
President and Chief Executive Officer, 3M

6 | 3M 2017 Sustainability Report

We look forward to forging new approaches that serveboth business and society.
At the same time, we recognize the progress we havemade throughout 2016, which demonstrates the value of
keeping Sustainability in our sights at all times, and in allof the places 3M operates:•

We continued using science to develop productsthat address challenges facing our customers
and our global community, including enhancing
human health, promoting access to clean water,increasing energy efficiency, and enabling safe
work environments.

•

We released a new parental leave policy that
extends the amount of leave while including
both biological and adoptive parents, which isdesigned to help all parents play active roles intheir families.

•

We partnered with the Smithsonian to open
the new National Museum of African American
History & Culture in Washington, D.C., byproviding financial and product support.

•

A survey by the National Institute of High School
Scholars ranked 3M as the top place to work formillennials.

•

We convened customer conversations focusedon Sustainability, and embedded Sustainability
into our business strategies across the company
and the globe.

We also began our journey toward our 2025 Sustainability Goals, which include investing in sustainable
materials, energy efficiency, and water management;
helping our customers reduce their greenhouse gas
emissions through the use of our products; promoting
worker and patient safety in health care and industrial
settings; and strengthening our workforce by doubling
3M’s pipeline of diverse leaders by 2025.
In collaboration with our customers, partners andstakeholders, 3M will reach these goals. We willcontinue to invest in developing products that help ourcustomers reach their targets, while increasing our own
Sustainability efforts in accordance with the UN Global
Compact and its principles.
Inge G. Thulin
Chairman of the Board,
President and Chief Executive Officer, 3M#improvinglives | 7

Our LeadershipA message from our Chief Sustainability
Officer, Jean Bennington Sweeney
As Chief Sustainability Officer, I get the opportunity
to speak to a variety of audiences about Sustainability
topics.
I’ve talked with students, investors, 3M employees, B2B
and B2C companies, consumers, government leaders,from across industries and across the globe, and there is
one topic that resonates everywhere: purpose.

It’s inspiring to see how the idea of working toward agreater good, and doing so with creativity and collaboration, really moves people. How recognizing individual
roles in creating positive change can drive business aswell as personal fulfillment.
I get to share how at 3M we have a Vision statementfrom our CEO that directly states our overarching
purpose: to improve every life. And how a sense of
purpose is at the heart of everything we do—from
products to policies to partnerships.
This commitment to the greater good is growing every
year. We are looking at ways to build purpose into
leadership and talent development across the company,
to recognize business opportunities that help ourcompany grow while addressing societal issues, and to
expand and improve our partnerships with customers
and suppliers by working together toward solving their
Sustainability challenges, which in turn serves us all.
As you read this report, and learn more about thejourney we are on toward a greater purpose, I encourage
you to think about your strengths and passions, thecapability you have to impact societal issues, as wellas the capabilities of your sphere of influence—youremployer, your social network, your community—and
see if there is opportunity for more purposeful work.

“At 3M, we are driving bothbusiness growth and societal
impact through purpose.”– Jean Bennington Sweeney
Chief Sustainability Officer

If we all recognize our opportunities and take action
accordingly, the resulting impact serves individuals andsociety, and is, quite frankly, good for business.
Thank you for learning more about what we at 3M aredoing toward #improvinglives, and for the purpose you
bring to each and every day.
Jean Bennington Sweeney
Chief Sustainability Officer

8 | 3M 2017 Sustainability Report#improvinglives | 9

Every life

We are 90,000 employeeswith a single ambition.

Improving
Every Life
It’s our Vision statement. But more than that it’s a personal calling for3M employees everywhere. A daily prescription to apply our science,
our curiosity and our resources to the world’s challenges, problems,
needs and opportunities.
Sometimes, the answers are just what people are looking for.
Sometimes, they are game-changing. Always, they are the productof purposeful collaboration — between 3Mers, 3M and customers,
3M and other organizations who share our passion for creating abetter world.
Of course, important achievements don’t happen overnight. They’rethe result of a journey that involves constant learning, improving andinnovating. Lessons are encountered along the way. Those lessons
are applied to the task at hand. And, in the end, the stories we create,
the achievements of which we’re most proud, reflect the meaningful
difference we are able to bring to every life.
10 | 3M 2017 Sustainability Report#improvinglives | 11

Every life

3M is a most preferredpotential workplace
2016 survey by National Society of High School Scholars

In our drive toimprove every life,
every employee
counts.
If a single virtue can be credited for 3M’s ability to bringpositive change to the world, it is our drive to create anenvironment where people can work with purpose.

A Desirable Location for Millennials
In a 2016 survey of 13,000 students and young
professionals in the U.S., conducted by the National
Society of High School Scholars, 3M bumped 2015
leader Google out of the top spot for most preferredpotential workplace. Millennials are now the largest
segment in the U.S. workforce and are especially
important as businesses look to fill openings createdby growth and the retirement of Baby Boomers. 3M
was joined in the top 10 by several other highly-reputed

12 | 3M 2017 Sustainability Report

employers, including Google, Apple, Amazon, St. JudeChildren’s Research Hospital and Walt Disney Company.
According to Society President James W. Lewis,
millennials hope to find “fair treatment, corporate social
responsibility and strong company benefits, which include
flexible work schedules” in the workplace. In addition,
survey participants expressed a keen interest in science,technology, engineering and mathematics (STEM), areasthat match well with 3M’s diverse career paths.

#improvinglives | 13

Every employee

Leadership
Development Programs
Of the many innovations 3M produced in 2016, this one
may, in the long term, be the most important: breaking
ground with a new leadership development platform.
The Catalyst program will help the company develop
leaders who can develop other leaders, empower teams
that can create and innovate on behalf of customers, andinspire all 3Mers to be their best. It moves leadershipdevelopment from a limited, time-based event to acontinuous journey over 12 months, incorporating
multiple face-to-face learning opportunities withexecutive leaders, customers and peers, blended with
online and mobile-enabled experiences. At the sametime, the Amplify, Ignite and Spark programs willdevelop employees at all levels within the company.
Participants will use real-time projects and spotcoaching to develop their skills. They will also engage
customers and community leaders throughout several
phases of the program. In the end, Catalyst, Amplify,
Ignite and Spark will develop 3M’s global pipeline oftalent while keeping the customer front and center.

New
ExpandedParental Leave
Benefits
up to 28 weeks totalmaternity leave

15%

promotes ourinnovation.

14 | 3M 2017 Sustainability Report“We listened to our employees.
We’re looking at attracting
and retaining talent. For us, it’s
about creating a more engaged
workforce.”— Mike Anderson
3M Director of HR, Global Benefits

In 2016, 3M announced the expansion of its U.S.
parental leave benefits. These benefits now extend toboth biological and adoptive parents. Permitted time
off has now been increased to 20 weeks, including
10 paid weeks. Biological mothers will also continue
to receive six to eight weeks of short-term disability
time off, for a total of up to 28 weeks of maternity
leave. The expanded benefits are part of 3M’s ongoingcommitment to support greater work-life balance for
employees across the company.

In 1948, 3M introduced a unique program that quickly became
one of the signature elements of the company’s reputation for
innovation. The 15% program, which continues today, allows
employees to dedicate up to six hours a week to their own
projects, to range beyond the responsibilities of their job,hatch their own ideas and see what can become of them. The
program is a perk that delivers benefits both to the individual
and the company. Among other innovations, the company
attributes the invention of Post-it® Brand notes to 15% time.

#improvinglives | 15

Every employee

Ourheadquarters
campus isalways buzzing.

In some cases, the concept of Sustainability at 3M isviewed from afar. In other cases, it’s right out our backdoor. Take the case of our St. Paul campus honey bee
habitat, for example. A dramatic decline in the honeybee population through the early part of the 21st century
has put the world’s food production at risk—since about
one-third of all crops are pollinated by honey bees. At
3M, some dedicated employees from the company’s
Mindfulness, Meditation and Leadership group havebeen doing their best to help turn things around forhoney bees. They planted bee-friendly flower gardens
on campus. And in June 2016, they took another big
step, bringing two bee colonies to campus to help
pollinate nearby trees and flowers. The colonies havebecome a hit with employees who walk the campus. As
one employee says, “They’re some of the smallest, buthardest working 3Mers yet.”We see through the eyes
and minds of children.
Child-like curiosity is one of the attributes we take seriously at
3M—and who better to demonstrate this quality than our own
children. We featured them in a series of videos that demonstrate
how we’re working to address various global challenges. Suffice it
to say, when it comes to improving lives, the next generation will
be up to the task. See for yourself at: www.3M.com/Sustainability.

16 | 3M 2017 Sustainability Report#improvinglives | 17

Innovating with purpose

We collaborate
with customers.
We innovate withpurpose.

Clear Intentions and Cleaner Water in Flint
Few cities can attest to the importance of clean waterlike Flint, Michigan. A city of about 100,000 people, 40
percent of whom live below the poverty line, Flint madenational news headlines beginning in 2014 for problems
its residents were having with the city’s water supply.
Inadequate treatment of the water, which came from theFlint River, had resulted in lead from aging service lines
leaching into the water.
Lead exposure is not something to be taken lightly. In
children, it can result in impaired cognition, behavioral

18 | 3M 2017 Sustainability Reportdisorders, hearing problems and delayed puberty. In
pregnant women, it can lead to reduced fetal growth.
For anyone who’s exposed, it can affect the heart,kidneys, and nervous system.
In Flint, testing by the U.S. Environmental Protection
Agency (EPA) in 2015 revealed that the water in homes
there carried from 50 to 150 parts per billion (ppb) oflead, up to 10 times more than the 15 ppb action levelestablished by the EPA.

3M Innovation

Test Results

About this same time, the 3M Separation and
Purification Sciences Division was preparing plans
to launch a new under sink water system, Filtrete™
Maximum Under Sink Water Filtration System 3USMAX-S01H, offered at Lowe’s and Walmart. Comparedto other water systems offered in the retail market, thesystem is designed to connect to a faucet, filters up to
1,500 gallons of water up to a six-month life, and—mostimportant—could claim a 99.3 percent lead reduction
in water that passed through it.

Sixty days later, the Michigan Department ofEnvironmental Quality tested the water in 13 of those
homes. Lead levels in all 13 were below the detection
limit. (Note: Residents of the other homes with the 3M
system were also happy with the results, but chose not
to have their water tested.)

The 3M team felt this could be a compelling solution
for the people in Flint and over 2,000 municipalities
affected by lead contamination. So they fast-tracked thelaunch of the product and inquired about the possibilityof donating systems to residents there. After passing areview process that included a donation review board
with representatives from the mayor’s office, theMichigan governor’s office, the EPA, Michigan Dept. ofEnvironmental Quality (MDEQ), the local United Way
and local plumbers union, it was agreed that 3M would
set up a pilot program in the fall of 2016 to provide
systems to residents in around 20 homes in the city. The
United Way and MDEQ determined residents in need.
The local plumber’s union agreed to donate services toinstall the systems along with new faucets. And, for the
first time in months, residents of those homes were able
to use their kitchen faucets, with filtered water flowing,a much preferable alternative to using bottled water for
everything from cooking to drinking to bathing.

3Mgives
Since then, 3M—through 3Mgives—has donatedan additional 600 under sink systems and 600 water
filters, a retail value of $72,000, to the United WayGenesee County. The local Habitat for Humanity is
working with Flint residents in need (e.g. senior citizens,poverty-stricken parents) to install these 600 systems in
the first half of 2017.
For the 3Mers who worked on this effort, the Flint
program has been a memorable experience; a living
demonstration of 3M Science. Applied to Life.TM

The residents of Flint who have
had the 3M system installedin their homes agree. Said one
resident, “This is a very positive
thing they’re doing.”#improvinglives | 19

Innovating with purpose

We’re up on the roof
rethinking solar.
A film developed by 3M scientists makes it possible forroof tiles to efficiently transform sunlight into electricity,
all while taking on the appearance of classic, residential
roof tiles.
The key to making this possible: 3M micro louver
technology. The technology is like that used in 3M
Privacy Filters, which prevent viewers at certain angles
from seeing content on a mobile device or computer
screen, but allow the user to see everything clearly. Froma 90-degree angle, you can clearly see the solar cells oneach solar roof tile, but from the ground, the tile appears
like an average roofing tile.

A life without identity often means a life without
support—no social security, no health care, and nogovernment subsidies. More than 300 million citizens
in India know this only too well. This is a group without
any ID documents to prove who they are, which makes it
hard to distribute food, health care and farming subsidies
to them. For the last two decades, the Indian government
has made it a priority to get India’s poorest citizens
access to documented identity and all that comes with
it. To this end, the government launched the National
ID program to promote paperless identity in 2009.
When government leaders looked for a partner to workwith them on this, a 3M India team met the challenge.
They started with a fingerprint scanner used in China
and adapted it to meet the specific needs in India. The
product had to be compatible with smart phones andaccurate even when citizens—many of them laborers—
have worn fingerprints. They set up a factory in six weeks
and started producing the scanner locally.

20 | 3M 2017 Sustainability Report

Solutions for
an Identity
Crisisin India

3M scientists compare the technology to micro venetianblinds; allowing for efficient conversion of sunlight toenergy, while also accommodating different aesthetic
and architectural styles. Even better? Standard roofing
tiles do not provide a fiscal benefit to a homeownerafter installation. Imagine if solar roofs can help powerhouseholds and even provide energy cost savings.

High efficiency solar cell
Color louver film
Tempered glass#improvinglives | 21

Innovating with purpose

L.A. cools down city’surban heat island effect.
On a sunny afternoon, the typically dark, impermeablesurfaces of urban roofs and pavements can get warmin the sun and actually heat the air. It’s called the urban
heat island effect. Meanwhile, on the same sunny
afternoon, the air temperature in nearby rural areas tends
to be cooler—because rural surfaces are more reflective
and permeable.
Urban heat islands (“UHIs”) can increase energy use,degrade air quality, and aggravate heat-related illnesses
in cities. In addition, there is concern about UHIs
contributing to climate change.
These issues led Los Angeles which has the highest UHI
effect in California, to create an ordinance that mandates“cool roofs” for all new residential construction projects.
3MTM Cool Roofing Granules, based on a patented 3M

technology, are one way Los Angeles contractors aremeeting the ordinance requirements. 3M Cool Roofing
Granules reflect sunlight and heat that other shingles
would typically absorb. This helps reduce urban heating
as well as lower energy consumption in climates with
year-round cooling needs—like Los Angeles. Many of
the shingles that contain 3M Cool Roofing Granules
meet Energy Star requirements, making them one of thepremiere choices for green building.

Cool roofs

reduce electricity bills
and help protect lives.

Disposable Respirator
Stockpile Maintenance Program
Managing inventories of personal protective equipment(PPE) for a major health care enterprise or governmentorganization is a complex, time-consuming, andoften costly task. 3M, in 2016, took a leadership rolein helping organizations deal with these issues. Our
Disposable Respirator Stockpile Maintenance Program
helps reduce costs—while making sure respirator
inventory stays up to date and ready to go when needed.

Elements of the program include: a rebate on purchases
made to replenish preparedness inventory; information
about product recycling, disposal options, and productdonation alternatives; and a customized inventory
management tool that provides enterprise-wide,
real‑time updates of inventory levels and shelf life
status at each of an organization’s locations.
To help organizations with older inventory that needed
to be replaced, 3M partnered with a recycler thatagreed to take shipments of expired product at no cost.

22 | 3M 2017 Sustainability Report#improvinglives | 23

Innovating with purpose

Reducing
Healthcare
Packaging
Footprint
Pain Relief for
Incontinence
Sufferers
3M Healthcare removed the cardboard core in the
comfort layer roll of 3M™ Coban™ 2 Layer Compression
System, a therapeutic compression system used to
manage venous leg ulcers, edema, and lymphedema—
and reduced the thickness of the product package. These
two steps eliminated over 75,000 pounds of packaging
per year, or the weight of 18 average passenger cars.

2 steps eliminated

75,000 lbs.

of packaging per year.
24 | 3M 2017 Sustainability Report

As our aging population grows, nurses continue to see
more instances of tough-to-manage skin breakdown
due to incontinence. So they were thrilled when, in late2016, 3M introduced revolutionary 3M™ Cavilon™
Advanced Skin Protectant, a high endurance skinprotectant designed to stop, reverse and prevent thedamaging effects of moderate to severe Incontinence
Associated Dermatitis (IAD). This new product provides
clinicians with compelling clinical and infection control
benefits, while offering greater comfort and protection
to patients, and giving institutions and nurses a more
economical way to deliver effective, compassionate
care. What’s more, it provides an effective barrier for
up to seven days and wears away naturally. Fewer
reapplications are needed, compared to traditional
pastes and ointments, and no need for removals means
less potential disruption to fragile skin.

Net-Zero Energy
Net-zero buildings produce as much renewable energy
as they consume. In Evanston, Illinois, you can shop in abrightly lit, energy efficient store—it’s a Walgreens, andit’s the chain’s first net-zero energy store. Walgreens
installed 3M’s Daylight Redirecting Film on the store’s
west-facing windows; the innovative film is designed todiffuse and redirect sunlight up to the ceiling.

“By applying 3M Daylight Redirecting Film, we wereable to solve our primary goal of reducing glare on
our west-facing curtain wall,” says Jason Robbins,
Manager of Mechanical Engineering, Walgreens, “while
simultaneously saving energy by increasing the area we
could use for daylight harvesting.”#improvinglives | 25

Our communities

We
engagewith thecommunity.
26 | 3M 2017 Sustainability Report

3M Legal
Affairs Pro
Bono Work
3M recognizes the importance ofgood corporate citizenship andsupporting the communities inwhich it does business.
A shining example of this is 3M Legal Affairs, which
supports pro bono service as a unique community
service opportunity for legal professionals. Only legal
professionals can address the unmet legal needs in thecommunity. By leveraging legal skills and experience,
3M Legal Affairs helps bridge the gap and strengthen
both the community and the justice system. In
addition, engaging in pro bono service exposes legal
professionals to new areas of the law and broadens
perspectives while sharpening legal analysis andclient communication skills. Pro bono services provide
volunteers with a special level of personal fulfillment andthe opportunity to engage with the community and newcolleagues in a meaningful way. All of these benefits
enhance 3M Legal Affairs, making it an attractive place
to work and develop as legal professionals.

#improvinglives | 27

Our communities

3M supports the
National Museumof African American
History & Culture.

The Smithsonian
National Museumof African American
History & Culture
opened on the
National Mall in
Washington, D.C.
in 2016.
3M is proud to be a Cornerstone Donor of the museum,investing more than $5 million to help construct andenhance it, including $1.6 million in 3M products. Oneof the enhancements: 100 3M touchscreens, positioned
throughout the museum that help share American
history through the lens of the African American
experience. In the “Freedom Now: The Modern Civil
Rights Movement 1945-1968” exhibit, for example, 3M
touchscreens lead visitors through a question-andanswer application that informs them about the heightof segregation, including stories about Freedom
Marches and the Montgomery Bus Boycott. In all, themuseum counts almost 37,000 artifacts in its extensive
collection.

Total 3M investment

5 million$

28 | 3M 2017 Sustainability Report

more than#improvinglives | 29

Our communities

GlobalGiving
In 2016, 3Mgives sponsored the purchase of more than $20,000 in GlobalGiving
gift cards which were then handed out at conferences and other events, such as Net
Impact and South by Southwest,® allowing recipients to give the gift card amount toa GlobalGiving-approved charity or cause of their choice. GlobalGiving is the firstand largest global crowdfunding community that connects nonprofits, donors, andcompanies in nearly every country around the world.

75 membercountries & regions

45+ skills

WorldSkills
Partnerships™

$

20,000in GlobalGiving

Gift Cards
30 | 3M 2017 Sustainability Report

3M is a Global Industry Partner of WorldSkills International, a not-for-profit movement that brings together
industry, government, organizations, and institutions,to promote the benefits of and need for skilled trade­professionals through grassroots community projects,
skill competitions, and knowledge exchange. WorldSkills
represents more than 45 skills in 75 member countries
and regions, all working together to help prepare theworkforce and talent of today for the jobs of the future.

5

years

Global Industry Partner
WorldSkills™ International#improvinglives | 31

Setting ambitious goals

We are setting
ambitious
goals.
Sustainability is nothing new at 3M.
It is a journey that we have been on, arguably,
since the company began. As early as 1932, 3M
began providing short-term and long-term disability
coverage and a pension plan for employees. In theearly 1950s, we formed the 3M Foundation andestablished the employee safety department. And ofcourse, the Pollution Prevention Pays program which
was started at 3M in 1975, fundamentally changed theway governments and companies across the globe
think about waste and pollution.

32 | 3M 2017 Sustainability Report

This is unparalleled early leadership. And 3M hascontinued to show leadership and results around
Sustainability, setting aggressive goals for own
operations to be achieved by 2025. The 2025 goals
range from investing in sustainable suppliers, materials
and energy efficiency to community-wide approaches,water management, zero landfill status, and helping
our customers reduce their greenhouse gas emissions
through the use of our products. 3M has also set goals
to build an even more diverse workforce and educate
individuals on worker and patient safety in health careand industrial settings.

Renewable
Energy Boost
3M took significant steps in 2016 toward accomplishing its goal of increasing renewable energy to
25 percent of total electricity use by 2025.
In Texas, the company signed an agreement topurchase 120 MW of wind energy from Invenergy,
a leading worldwide supplier of renewable power.
The agreement includes the sale of wind energy
from the Gunsight Wind Energy Center, to help
support our operations across North America.
Meanwhile, on the other side of the globe, the3M plant in Ranjangaon, India recently began
producing renewable energy after converting an
unused 10,000 square meter rooftop to a solar
power generation installation. More than 1,500
solar panel modules were installed on the rooftop,
capable of generating 14,000 MWH of electricity
and saving $1.3 million over the projected 20-year
life of the modules. The system also includes aprovision to feed energy to the India power gridwhen not needed in-house.

3M andthe United
Nations
Sustainable
Development
Goals
At 3M, the Sustainability goals we’ve set for 2025 areframed around global challenges.
This is apparent when one considers how well our goalsalign with the goals the United Nations released in their2030 Agenda for Sustainable Development in 2015.
The U.N. created 17 Sustainable Development Goals(SDGs) designed to build upon the historic work of theMillennium Development Goals, and stimulate important
action in three dimensions of sustainable development:
economic, social, and environmental.
To learn how our goals at 3M are #improvinglives inaccordance with, and in support of, the 2030 SDGs be
sure to visit www.3m.com/sustainability.

#improvinglives | 33

Our Every Life Ambition |Our
Every Life
Ambition
34 | 3M 2017 Sustainability Report

Introduction

36

Global Challenges

38

Materiality

40

2025 Goals

46#improvinglives | 35

Our Every Life Ambition | Introduction

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

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

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

36 | 3M 2017 Sustainability Report#improvinglives | 37

Our Every Life Ambition | Global Challenges

GlobalChallenges
At 3M, we look at Sustainability in terms of sharedglobal needs and the future of our business.

As the population grows, particularly inemerging economies, challenges like energy
2, 14
availability and security, raw material scarcity,
human health and safety, education, and development
must be addressed to assure people across the globe
can lead healthy, fulfilling lives. We recognize that our
impact includes that of our own operations as well as thefar greater impacts we can make through our efforts inlocal communities and for our customers through the
products we offer.
G4SD

Raw Materials
The world’s population is growing larger,
living longer—and consuming more. With
this increased pressure on our finite
natural resources and materials, we mustmove beyond low-cost, recyclable

38 | 3M 2017 Sustainability Reportmaterials to renewable products. Companies that
address this issue not only help the planet, but theyalso gain a competitive advantage in the marketplace.
3M has worked on this challenge for decades andwill continue to innovate into the future, developing
renewable alternatives for impacted resources,­revolutionizing recyclable materials and becoming
more sustainable.

Water
People consume it, farm with it and manufacture products with it. Reducing water
consumption and improving water quality
are important elements of environmental
stewardship.
Water is our world’s most valuable natural resource.
Despite water’s prevalence, freshwater makes up only

2.5 percent of our total global water supply. A majorityof freshwater is used for irrigation purposes, but nearly
30 percent of it is used for domestic consumption andindustrial functions. Aging infrastructure and increased
demand places a premium on clean, accessible water for
3M, our customers and communities around the world.
Some of our customers are finding it difficult to sourceor deliver clean, accessible water. We can help themsolve this problem by developing technology that
increases water efficiencies and improves quality.

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

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

Education and Development
Global unemployment rates are expected
to remain steady through 2017, particularly among youth. Today’s job market has
fewer opportunities, with most available
jobs too specialized for young people
and recent graduates. As a technology company, 3M­recognizes the importance of well-trained science,­technology, engineering and math (STEM) graduates—
we need young minds to step into specialized roles andhelp our company solve future challenges.

#improvinglives | 39

Our Every Life Ambition | Materiality

Materiality
Our Commitment
At 3M, we look at Sustainability in terms ofshared global needs and the future of our
20-21, 48
business. As the population grows, particularlyin emerging economies, challenges like energy availability
and security, raw material scarcity, human health andsafety, education, and employment must be addressedto assure people across the globe can lead healthy,
fulfilling lives.
G4SD

For this reason, our materiality assessment is a vital
component of our Sustainability strategy and reporting,whether the issues are a result of our own activities
or our business relationships and is based on a robust,­stakeholder-driven approach. By understanding thecritical issues from both internal and external perspectives, we can deepen our social license to operate anddevelop corporate strategy, goals, targets, programs,
initiatives and a stakeholder engagement strategy toadvance Sustainability globally.

40 | 3M 2017 Sustainability Report

Data provided in our Sustainability Report includes information on issues that were found through the materiality
assessment to have the highest potential to impact our
reputation and that are of great importance to internaland external stakeholders. Because we are a diversified
company, several other environmental-related topics
and performance indicators relevant to various sectorsof the company are also included in the report. 3M’sChief Sustainability Officer (CSO) reviews and approves
our Sustainability Report.
Our 2025 Sustainability Goals were developed from our2014 materiality assessment.

#improvinglives | 41

Our Every Life Ambition | Materiality

Our Actions
Stakeholders increasingly expect companies
to do things that benefit society in more direct
2, 18-19, 27
ways and are not solely focused on benefits tothe company. That is why we made such an active effort
to involve stakeholders when we developed our newest
set of Sustainability Goals. These goals go well beyond
advancing our environmental stewardship efforts. Our
goals focus on Raw Materials, Water, Climate and Energy,
Health and Safety and Education and Development.
G4

SD

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

Materiality—past, present
and future
In 2014 and 2016, 3M commissioned GlobeScan, an
independent research consultancy, to assist us in better
understanding our stakeholders’ perspectives of keysocial and environmental issues, as well as assessing
3M’s corporate reputation and leadership opportunities
in the area of Sustainability.
One result of this work is our evidence-based Sustainability materiality matrix. From this matrix, 3M andthe readers of this report can understand the degreeof importance our stakeholders place on each issue,
the ability of 3M to make a positive difference on theissue, and the level of impact an issue may have on
our reputation.

42 | 3M 2017 Sustainability Report

Materiality with respect to Sustainability reporting, as
defined by the Global Reporting Initiative (GRI) guidelines, includes topics and indicators that reflect theorganization’s significant economic, environmental,
and social impacts or would substantively influence
the assessments and decisions of stakeholders.
The Sustainability materiality assessment conductedby GlobeScan determined the material aspects for awide range of 3M stakeholders outside of 3M, encompassing geography, stakeholder type, and function.
All material aspects defined within this report are
deemed material for all entities within the 3M organization. The prioritization for the different aspects mayvary within 3M operations and geographies, but they
are still material.

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

2014

2016

Energy use

Energy use

Community safety and healthCommunity safety and health

Reducing waste

Water quality

Reducing toxic substances

Working conditions

Water shortages

Ethical business

Water quality

Scarcity of raw materials

Working conditions

Human rights

Ethical businessClimate change
Air quality
Transparency

3M Materiality Aspect Categories:
Raw Materials
Water

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

Climate and Energy

Availability of products and services
with sustainability attributes

Availability of products and services
with sustainability attributes

Air quality

Treatment of workers

Climate change

Reducing toxic substances

Human rights

Water shortages

Treatment of workers

Reducing waste from operations

Transparency

Food safety*

Scarcity of raw materials
Human health

Health and Safety
Education and Development
Governance and Ethics

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

Engagement with citizens onsustainable behavior

Engagement with citizens onsustainable behavior

Employment

Employment

Advocating laws supporting
sustainability

Advocating laws supporting
sustainability

Supporting community building

Supporting community building
Human healthWorkplace diversity*
Improving access to education*
Responding to natural disasters**New attributes added in 2016

#improvinglives | 43

Our Every Life Ambition | Materiality

are considered an area to leverage in terms of management of human rights.

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

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

Transparency has moved from Tier 2 to Tier 1 priority,
suggesting that transparency is increasingly importantin a global, interconnected world. Scarcity of raw
materials, air quality, and climate change have also
moved from Tier 2 to Tier 1 priority, joining existing
environmental issues such as energy use and water
quality, and further supporting the notion that theseissues would benefit from holistic management. Humanrights has also moved from Tier 2 to Tier 1 priority. Thisissue is also linked with working conditions which areperceived to be within 3M’s realm of control, and thus

It should be noted that none of the issues added tothe study in 2016—food safety, workplace diversity,
improving access to education, and responding tonatural disasters—were found to be a Tier 1 priority.

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

Water Quality

Employment
Engagementwith citizens onsustainablebehavior

More specifically, we will focus on developing
products that enable safer and healthier workplaces
for customers, and assuring safe and healthy working

Water
shortages

Perceived ability of 3M tomake a positive difference

Low

Community
Safety and HealthHigh

Supporting
community
building

Community
safety andhealthEnergy use

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

Supporting
community
building

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

Scarcity of
raw materials

HumanrightsTransparency

Treatmentof workers
Human healthWorking
conditions

Ethicalbusiness

Impact on 3M Reputation

Impact on 3M Reputation

Climate change

conditions throughout our supply chain. We will do ourpart to assure that 3M business partners follow ethicalbusiness practices and that a strong business conductand compliance system is in place at 3M. We will lookto develop products that enable customers to improvewater quality, and modify operations, as necessary, toreduce water discharges. Throughout, we will work to
be transparent in communicating about 3M products
and business practices.

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

2014

Air quality

Looking forward…

Scarcityof rawmaterials

Improving
access to
education

HumanrightsImportance to Stakeholders

44 | 3M 2017 Sustainability Report

Perceived ability of 3M tomake a positive difference

Low

High

Working
conditions

Water quality

Ethicalbusiness

Air quality

Responding
to natural
disasters

Food safety

Workplacediversity

Availabilityof products andserviceswithsustainability
attributes

Engagement with citizens
on sustainable behavior

Treatmentof Workers

Employment

Human health

Advocatinglaws supporting
sustainability

2016

Transparency
Climate change
Energy use
Reducing
toxic
substances

Water
Reducing Waste Shortages
from operations

Advocatinglaws supporting
sustainability

Importance to Stakeholders#improvinglives | 45

Our Every Life Ambition | 2025 Goals

2025 Goals

InvestInvest to develop moresustainable materials andproducts to help our customers
reach their environmental goals.

Achieveglobal zero landfill status
at more than 30% of manufacturing sites.

We have been setting global environmental goals at
3M since 1990. A strong part of our company history,these goals have helped dramatically reduce our own
environmental footprint and established us as a leader inenvironmental stewardship.
In 2016, we entered the first year of an ambitious new
ten-year goal cycle. The 2025 Sustainability Goals weare now pursuing reflect a heightened commitment
to going beyond compliance and thinking holistically
about how our operations and products affect theworld and every life in it. We see the opportunity, in thenext decade, to create systemic change that addresses
global Sustainability challenges involving raw materials,
water, climate and energy, health and safety, as well as
education and development.

46 | 3M 2017 Sustainability Report

When we set these goals, we said they were challenging,
and we didn’t know how we would achieve each ofthem. And to date, our data related to our progress has
not been what we’d like. But it’s only year one—and
there are 91,600 of us here who love a challenge.
Instead of scaling back our expectations, we plan to
double down, to apply our science, to innovate new
systems and solutions, and to continue to raise the barfor Sustainability.
Our customers, and the communities in which we
operate, deserve it. Our people are motivated by it.
Our future will be all the better for it.

Reduce global manufacturing waste

10%

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

Supply Chain
Drive supply chain Sustainability
through targeted raw material
traceability and supplierperformance assurance.

#improvinglives | 47

Our Every Life Ambition | 2025 Goals

Improve energy efficiency

Reduce global water use

10%
Engage Communities

Invest Cashand Products

Engage 100% of water-stressed/
water scarce communities
where 3M manufactures oncommunity-wide approaches towater management.

100%

Invest cash and products foreducation, community andenvironmental programs.

25%
GHG

100% participation in employee
development programs to advanceindividual and organizational capabilities.

emissionsof diverse talent in management

to build a diverse workforce.

Provide training to5million people globallyon worker and patient safety.

Improve energy efficiency
indexed to net sales by 30%.

Increase renewable energy

participation in programs

Double the pipeline

48 | 3M 2017 Sustainability Report30%

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

Increase renewableenergy to 25% of total
electricity use.

50%

below our 2002 baseline
Help our customers reduce

GHGs

250

Ensure GHG emissions at least
50% below our 2002 baseline
while growing our business.

Help our customers reduce their
GHGs by 250 million tons of CO2
equivalent emissions through useof 3M products.

million tons

#improvinglives | 49

Who We Are |Who
We Are50 | 3M 2017 Sustainability Report

Introduction

52

Our Corporate Values and Vision

56

Communities

58

Engaging Our Stakeholders

66

Diversity and Inclusion

70#improvinglives | 51

Who We Are | Introduction

Our Awards“At 3M, it’s not enough to just win in business—

it matters how you do it. Customers want to
do business with companies they can trust,and achieving that trust requires the help of all
employees. I’m proud to say our people live 3M’s
Code of Conduct every day by making ethicaldecisions and speaking up if they aren’t surewhat to do.

”

Introduction

For the 17th consecutive year, 3M was selected as amember of the Dow Jones Sustainability Index, a global
stock index that recognizes and tracks the performanceof leading Sustainability-driven companies worldwide.
One of the most highly regarded rankings in terms of
Sustainability performance, this index is created byresearch analysts who perform an in-depth study ofenvironmental, social and economic performance.

Who We Are
A sense of purpose is at the heart of how we approachevery business, every idea, every product, every lifeand every community we touch. It is the foundation of
all that follows.

Who we are.
3M employees are empowered and encouraged topursue purpose-driven innovation.
Working in a highly collaborative environment, ourscientists use 46 core technology platforms, ranging
from adhesives and abrasives, to sensors and electronics
materials. They leverage these technologies to invent
unique, customer-inspired products that are marketed
through our five business groups.
Sustainability also permeates our culture. It is formally
included in our leadership behaviors and our annual
performance review process. What’s more, employees

52 | 3M 2017 Sustainability Report

are educated and encouraged to “think sustainably”—athome, at work and everywhere in between. Improving
lives and making the world a better place is more than afrequent conversation, it’s become an expectation.
It’s even become a selling point for current and potential
3M employees. Research has shown that Sustainability,and “making a difference in the world,” is one of the
top areas of interest for 3M employees. This has led us
to develop messages against these insights as part ofglobal internal communications campaigns. In late 2016,
for example, a global campaign led by our 3M Human
Resource function asked each employee to do “onesimple thing to improve lives.” We consider this opportunity for impact a critical part of current employee
retention, but also part of our brand for attracting new
employees. It sends a compelling message to bothgroups, particularly when 3M is a company uniquely
positioned to change the world.

EcoVadis awarded 3M a Gold Recognition Level for achievements in the top one percent of
suppliers assessed in corporate social responsibility(CSR) in global Supply Chains.

For the second consecutive year, Practice Greenhealth,a leader in promoting environmental stewardship,presented a “Champion for Change” Award to 3M
Health Care for the company’s success in achieving
environmental targets and for helping customers
improve their environmental performance.

Kristen Ludgate, 3M’s Vice President, Associate
General Counsel and Chief Compliance Officer

Top Product of the Year Award
3M Health Care also won a Top Product of the YearAward in 2016 at the Environmental Leader 2016
Conference in Denver, for 3M™ Petrifilm™ Plates.
Compared to traditional agar test methods, 3M Petrifilm
Plates offer users up to a 66 percent reduction in waste,
use up to 76 percent less energy, up to 79 percent lesswater, and reduce greenhouse gas emissions up to
75 percent. Scores for the award were determined bya panel of experts in environmental and Sustainability
management.

Ethisphere World’s Most EthicalCompanies® Honoree

The World’s Most Ethical Companies® program,managed by the Ethisphere® Institute, honors companies
that excel in “promoting ethical business standards andpractices internally, enabling managers and employees
to make good choices, and shaping future industry
standards by introducing tomorrow’s best practices
today.” According to the Institute, honorees have also
historically out-performed other companies from afinancial perspective, supporting the notion that soundethical practices are appreciated in the competitivemarketplace. This year’s honorees spanned 19 countries
and five continents. It was the fourth consecutive year
3M made the list.

#improvinglives | 53

Who We Are | Awards

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

100 percent and, along with it, the distinction of being
named among the “Best Places to Work for LGBT
Equality.”

Best DEI Places to WorkIn the second annual Disability Equality Index® (DEI®)
survey, 3M ranked among the top-scoring companies
with a 90 percent score.

2020 Women on Boards Winner
3M was named a “V” company, with 17 percent of
women on the board, by this organization whose goal is
to increase the percentage of women on U.S. company
boards to 20 percent or greater by the year 2020.

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

Forbes’ list of “The World’s Most
Reputable Companies” for 2017
3M has been named to Forbes’ list of “The World’s Most
Reputable Companies” for 2017, which highlights the
top 100 most reputable companies based on feedback
collected in Q1 from approximately 170,000 consumers
around the world who are familiar with the companies.
3M ranked 22nd on this year’s list—climbing eight spots
from 30th place in 2016.

Companies Where Top Millennials Most
Want to Work
National Society of High School Scholars (NSHSS) 9th
Annual Career Survey, conducted by Hanover Research
identified 3M as the #1 most dream company to work
for among respondents in 2016.

Inge Thulin receives Ethical
Leadership AwardIn April, 2016, 3M Chairman, President and CEO Inge
Thulin was awarded the 2016 Hendrickson Medal for
Ethical Leadership, sponsored by St. Mary’s Universityof Minnesota. The Hendrickson Medal honors an individual who, through his or her work, has demonstrated
the principles of ethical leadership. According to theuniversity’s press release, Thulin has been an exceptional
leader for 3M and the community, for, among otherthings, strengthening 3M’s commitment to Sustainability
and ethical business practices.

Other Featured
AwardsThe Top Ten Most Innovative
Companies
3M has been named one of the top ten most innovative
companies in the world, ranked #3 by Strategy and Price
Waterhouse Coopers.

Newsweek Global Green Rankings
3M ranked in Newsweek global 2016 Green Rankings
report recognizing the greenest companies in theworld. In the industrial category, 3M ranked 16th among
companies in the U.S. and 21st worldwide.

Great Places to Work®
The following countries and areas were ranked by Great
Places to Work® and awarded as a best place to workin 2016:•

3M Brazil is ranked #38•

3M Canada is ranked #35•

3M Greece is ranked #9•

3M Poland is ranked #15•

3M Central America is ranked a Best
Multinational of Central America #29•

3M Costa Rica is ranked #28 for the country and#57 for the Central American region•

3M Nicaragua is ranked #8 for the country and#44 for the Central American region•

3M Guatemala is ranked #28 for the country and#40 for the Central American region•

3M El Salvador is ranked #12 for the country and#43 for the Central American region•

3M Honduras is ranked #19 for the country and#48 for the Central American region•

3M Panama is ranked #28 for the country and#53 for the Central American region•

3M Ireland is ranked #3•

3M Portugal is ranked #11•

3M Italy is ranked #11•

3M UAE is ranked #13

3M Employee Recognition:•

Diversity Journal, Women Worth Watching
Award®: Tamie Minami (2016)•

Savoy Magazine’s “2016 Top Influential Women in
Corporate America”: Kim Price and Cindy Kent•

2016 Global Women’s Envoy, National
Association for Female Executives, Marlene
McGrath•Montana State University honorary doctorate inengineering: Jean Bennington Sweeney

Best Places to Work for LGBT Equality
Human Rights Campaign Foundation’s 2016 Corporate
Equality Index is the national benchmarking tool on
corporate policies and practices pertinent to lesbian,gay, bisexual and transgender (LGBT) employees. For
the sixth straight year, 3M earned a perfect score of
54 | 3M 2017 Sustainability Report#improvinglives | 55

Who We Are | Our Values

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

Act with uncompromising honesty and integrityin everything we do.

•

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

•

Provide our investors an attractive return throughsustainable, global growth.

•

Respect our social and physical environment
around the world.

•

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

•

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

56 | 3M 2017 Sustainability Report

Our Vision
3M continues to be inspired and motivated by our
corporate vision:
3M Technology Advancing Every Company
3M Products Enhancing Every Home
3M Innovation Improving Every Life

Our Vision helps define what we do, how we do it, andwhere we do it. At the same time, it establishes a stretch
goal for all employees at 3M. And it captures what
differentiates us from competitors as an enterprise.
What we do and have done for 114 years is advancing,enhancing, and improving. How we have done it, andcontinue to do it, is through technologies, products,
and innovation. Where we do it is for every company, inevery home and for every life all around the world.
In short, this vision serves as a daily reminder to all of us
of what the 3M brand stands for.

#improvinglives | 57

Who We Are | Communities

Communities
Our Commitment

3Mgives strategy focuses on
three important areas.

Through 3Mgives, we make apositive impact on our world.

Education: 3Mgives supports initiatives that increase
student interest and achievement in science, technology,
engineering and mathematics (STEM) and business tohelp build a diverse pipeline of global talent.

3Mgives helps build sustainable communities
through strategic investments, business
7-8
expertise and the thoughtful engagement of
3Mers worldwide, who volunteer and leverage theirknowledge and experience to make a difference. The
impact of these actions is because of our collaboration
with partner organizations that have a proven trackrecord for delivering results.
G4

EC

As the social investment arm of 3M, 3Mgives isgoverned by the 3M Foundation Board of Directors andthe Corporate Contributions Committee comprised ofsenior level executives in the company. The 3M Foundation Board of Directors guides our social investment
strategy by identifying areas of focus, allocating budget
and providing high-level strategic advice for implementation by 3Mgives staff.
58 | 3M 2017 Sustainability Report

Community: 3Mgives enhances community vibrancy
by assuring access to basic needs, preparing youth
for life-long success, increasing access to quality anddiverse arts opportunities and contributing to global
humanitarian relief efforts.
Environment: 3Mgives invests in programs promoting
Sustainability and environmental stewardship in thecommunities where 3M employees work and live.

#improvinglives | 59

Who We Are | Communities

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

We will continue to invest in increasing access forpeople worldwide to achieve greater skills in STEM andbusiness, and to improving lives through investments inenvironment, health and safety programs. Cash, in-kind
donations, sponsorships, and volunteerism will remaincore to our 3Mgives strategy. Since 1953, we haveinvested $1.45 billion in cash and product donations in
3M communities.

Our Actions
Education

DonorsChoose.org
3M partners with DonorsChoose.org to broaden thecompany’s support of STEM projects in classrooms
across the country. Today, 3M’s U.S. locations invest
more than $500,000 annually in classroom projects
led by teachers. In 2016, 3M investments reached 560
schools, 771 projects and more than 87,000 students insupport of STEM projects that enhanced learning.

Frontline Sales Initiative
During the summer of 2016, 35 students from 17
universities across the U.S. participated in the 3M
Frontline sales and marketing internship program. Their
itinerary included a two-week introduction to 3M, eightweeks in the field selling 3M products for one of 14 3M
businesses, and a one-week review of their experience.
At the end of the program, Frontline students are often
offered and accept jobs with 3M.

As a company that has thrived on applying science tolife, we understand the importance of inspiring the next
generation of scientists, innovators and inventors. Our
educational investments, through 3Mgives, support ourbrand promise by investing in initiatives that help young
people understand how science impacts their daily lives
and encourages and supports interest in STEM. Our
goals: 1) to increase student interest and achievementin STEM and business, especially in underrepresented
populations, 2) to build a diverse pipeline of global talentand 3) to increase access to quality education for allcommunities and to improve education outcomes.

WorldSkills
3M is a Global Industry Partner of WorldSkills International, a not-for-profit movement that brings together
industry, government, organizations and institutions,to promote the benefits of and need for skilled tradeprofessionals through grassroots community projects,
skill competitions and knowledge exchange. Based in
Spain, WorldSkills represents more than 45 skills in 75
member countries and regions, all working together tohelp prepare the workforce and talent of today for thejobs of the future.

60 | 3M 2017 Sustainability Reportthat could solve an everyday problem. After all videos
have been judged, ten finalists are given an opportunity
to participate in a summer mentorship program with 3M
scientists, and travel to 3M headquarters to compete in
the final event.
See the winning 2016 video from Maanasa Mendu, aneighth grader from Mason, Ohio.

3M Visiting Wizards
3M Visiting Wizards encourage young people globallyin grades 1-6 to become interested in science and technology by providing interesting science demonstrations
and hands-on experiments on a variety of topics, suchas the properties of light and color, cryogenics, microbiology, thermodynamics and electricity, all courtesy of agroup of 3M volunteers.
This kind of exposure at an early age helps students
understand how science impacts everyday life, andencourages young people to become interested in
STEM.
In 2016, more than 28,000 students attended a
Visiting Wizards demonstration. More than 800,000
have participated in presentations since the program’s
inception in 1985.

Community
3M strives to build and maintain trust and reputationin the places where 3M does business by contributing
to the development of sustainable communities. 3M
contributes to communities through support of thearts, youth development, and basic needs and provides
humanitarian aid in times of need. These efforts help
assure our communities are attractive places to live
and work.

Humanitarian Aid
3M enhances community vibrancy by supporting
individuals and families affected by global crises. We
strive to help meet the immediate needs of those
impacted, and to assure all those affected by a natural
disaster receive the care necessary to re-establish­self‑sufficiency. We engage our most valuable assets—
our people and our products—to help people get backon their feet. In 2016, 3M and 3Mers invested more than
$1 million in cash and products to support communitiesin crisis—including investments in the U.S., Canada,
Ecuador, Haiti and Japan.

See a typical Visiting Wizards demonstration: In the Lab
with 3M 4Kids: Magnets.

Higher Education
Frontline Sales Initiative

Young Scientist Challenge
The Discovery Education 3M Young Scientist Challenge
is the United States’ premier science competition forgrades 5-8, launched in 1999 by Discovery Communications and co-sponsored by 3M since 2008. Its mission:
to cultivate the next generation of American scientists at
an age when interest in science often declines.
Through the years, the one-of-a-kind competition has
sparked the imaginations of students and enhanced
science exploration, innovation and communication
across the United States. Students are invited to create
a 1-2 minute video describing a new, innovative solution

As a science company, 3M recognizes the importanceof building a strong and diverse pipeline of global talent
in STEM and business disciplines. Therefore, we partnerwith relevant vocational schools, colleges and universities to support post-secondary programs that effectively
attract, retain and graduate students.
In addition to providing student support, for more than
25 years, 3M technical leaders have directed financial
support to promising academic leaders to support theadvancement of research and teaching in relevant STEM
and business fields. In 2016, 3M invested $810,000 to
54 non-tenured faculty members.

Product Donations for Haiti#improvinglives | 61

Who We Are | Communities

Throughout the year, the 3Mgives Volunteer Matchencourages volunteerism by donating to schools andorganizations where 3Mers and alumni volunteer theirtime. Since 2000, in the U.S., 3Mgives has provided
more than $6.36 million on behalf of over 28,000 volunteers to more than 3,000 organizations in 50 states.

the earthquakes in Japan and Ecuador, 3M matchedemployee contributions through key partners, like
GlobalGiving.org and American Red Cross, to inspire
3Mers to double their impact in those affected
communities.

Dorothy Day Center

NMAAHC

Smithsonian National Museum of
African American History & Culture
The National Museum of African American History &Culture (NMAAHC), located on the National Mall in
Washington, D.C., commemorates the African American
experience as seen through the eyes of those who
lived it. Established by an Act of Congress in 2003,
the NMAAHC counts almost 37,000 artifacts in its
extensive collection.

Hong Kong, 3M Global Volunteer Day

Local Community Engagement

3M is proud to be a cornerstone donor to this important
institution, which opened to the public in September
2016. We are equally pleased that 100 3M touchscreens
throughout the museum help guide visitors throughthe exhibits. In the “Freedom Now: The Modern Civil
Rights Movement 1945-1968” exhibit, 3M touchscreens lead visitors through an interactive question
and answer program that informs visitors about segregation, including stories about Freedom Marches and the­Montgomery Bus Boycott.

3M Volunteers and Global
Volunteer Day
In September 2016, 3M marked its third annual Global
Volunteer Day in 3M communities around the world.
For example, more than 100 3M volunteers from thecompany’s service center in San Jose, Costa Rica
created a playground for students at a local school. In
Hong Kong and Singapore, volunteers delivered baskets
of 3M home and health care products to families inneed. In France, volunteers created a therapeutic garden
for retirement home residents.

62 | 3M 2017 Sustainability Report

The Dorothy Day Center transforms lives for under­served individuals in St. Paul, Minnesota, providing
meals, mental health services, medical care, showers,
and emergency shelter for people experiencing homelessness. In 2016, 3M committed $1 million worth ofcash and products to the Dorothy Day Center—a
two-building campus designed to prevent and end
homelessness with emergency shelter, supportive
services, access to resources and permanent
supportive housing. This project is based on models
that have shown documented success in moving
those individuals most in need along the continuum
from crisis to stability to self-sufficiency. It’s a primeexample of an innovative investment in the 3M headquarters community.

3M partners with nonprofit organizationsat headquarters and plant locations around1
the world. In 2016, this included a $100,000
investment in Prairie du Chien, Wisconsin Public
Library as a part of the “Ready, Set, Grow” capital
campaign—assuring the development of STEM
education efforts for generations to come. A similar
investment was made in Decatur, Alabama for the
Cook Museum of Natural Science—building an
opportunity to provide children in the region withongoing positive perceptions of science and math innature. 3M also invested internationally—establishing
meaningful partnerships through the 3M International
Giving Fund in China, Morocco, Costa Rica, andBenelux, among other locations.
G4

SO

Costa Rica, 3M Global Volunteer Day

Collaborative Community Engagement
3M partners with innovative nonprofit partners like
GlobalGiving.org to crowdsource investment decisions
from key stakeholders, including both customers and3Mers. For example, 3M empowered attendees at theSouth by Southwest™ Music Festival and the Net Impact
Conference to direct corporate contributions to global
nonprofits aligned to 3M Sustainability priorities. In
response to the devastation of Hurricane Matthew andEnvironment
3M invests in initiatives that foster sustainablecommunities. This includes projects that13
protect threatened ecosystems, support local
economies, enhance livelihoods and promote sciencebased environmental education.
G4

EN

Closed Loop Fund
Cities across the U.S. spend billions of dollars sending
recyclable materials to landfills. The Closed Loop Fund
(CLF) is a collaborative social impact fund that gives
cities access to capital needed to build comprehensive
recycling programs. At the same time, it gives companies
like 3M access to an important supply of recycledmaterials for use in packaging. 3M’s $5 million commitment to the CLF has already helped fund 12 projects
that have improved recycling access and diversion
for 4.1 million households, and provided $17 million
in economic benefit to participating municipalities.
This partnership is one of 3M’s innovative approaches
to strategic social investing. It is the company’s firstprogram-related investment (PRI) that will be paid backto the Closed Loop Foundation to recycle funds backinto the community in the future.
The Nature Conservancy
3M has joined The Nature Conservancy in transforming
how forest resources are managed in Canada’s Boreal
Forest, which occupies 55 percent of the land in
Canada. This project is a model for the sustainablesupply of economically viable fiber, while also providing
jobs for local communities. In addition, it helps
protect natural and high conservation value forestsand peatlands, along with the threatened species
that depend on them, while respecting the rights ofIndigenous peoples and enhancing their role in direct
management and decision-making. This new paradigm
in Indigenous management of natural resources will
create an unprecedented and globally significant
network of conservation areas, a future of healthy andself-sustaining woodland caribou herds, and the largest
Forest Stewardship Council (FSC)-certified forest tenure
in North America.

Looking forward…
Based on input from global 3Mers, 3Mgives is evolving
our approach to engaging our most impactful asset—
our people. 3Mgives is launching a new volunteer
technology platform in 2017 to respond to 3Mers’ desire
for more opportunities to support local organizations
through volunteerism. In addition, 3Mgives continues tobuild programs that will leverage 3Mers’ skills and technologies to address some of the world’s most pressing
problems. For example, 3Mgives’ newest volunteer
program, 3M Impact, will deploy some of 3M’s talented#improvinglives | 63

Who We Are | Communities

and engaged employees to global markets to work with
community partnerships focused on improving lives.

of the opportunities available in manufacturing, and3M will partner with technical schools and community
colleges to develop curriculum and internships. Our
goal is to increase the pipeline of manufacturing talent,particularly veterans and groups underrepresented in the
manufacturing industry.

In 2017, 3Mgives will also expand its focus on STEM
education to develop specific programs relating
to advanced manufacturing skills positions. These
programs will increase high school student awareness

G4

EC

7

2016 Giving by Focus Area
Cash

In-Kind

Total%

Volunteer Hours

Education$16,000,000$8,480,000$24,500,000

36.6%

74,400Community$16,200,000$24,000,000$40,200,000

59.5%

265,000

Environment$2,540,000$61,000$2,600,000

3.90%

8,450

$34,800,000$32,500,000$67,300,000

100%

348,000

Total

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

2016 Global Giving by Region
Charitable Corporate
Cash Donations (USD)

Charitable Foundation
Cash Donations (USD)

In-Kind Donations (USD)

Total Donations (USD)

Asia Pacific269,000

450,000

2,330,000

3,040,000

Canada1,180,000

197,000

583,000

1,960,000

Europe/Middle East/Africa

617,000

80,000109,000

806,000

Latin America

882,000

0

674,000

1,560,000

United States

12,600,000

18,400,000

28,800,000

59,900,000

Total

15,600,000

19,200,000

32,500,000

67,300,000#improvinglives means enabling better
patient outcomes, lifelong oral healthand a safer food supply.
Our innovative solutions help customers, from hospitals and clinics, to foodand pharma companies, improve sustainability and patient health.

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

Health Care64 | 3M 2017 Sustainability Report#improvinglives | 65

Who We Are | Engaging Our Stakeholders

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

Stakeholder engagement can help guidecompanies on doing business the right way. It
15-16
can also have a direct impact on a company’s
financial success (sales, share price and investments), on
its operations, and on its reputation. 3M has created arobust, stakeholder-driven approach to sustainability
materiality that serves as a foundation for our sustainability strategy and reporting. Through understanding
critical sustainability issues from both internal andexternal perspectives, 3M can strengthen its social
license to operate and develop corporate strategy, goals,
targets, programs, initiatives and a stakeholder engagement strategy to advance sustainability globally.
G4

SD

As a science-based company, our stakeholders include
customers and consumers, investors, government
66 | 3M 2017 Sustainability Reportagencies, industry organizations, subject-matter
experts and academia, non-government organizations,other corporations and more.
It is through collaboration and partnerships that 3M
can accelerate sustainability in our company and in
the world. We value our partnerships with numerous
stakeholders as a way to not only address our sustainability issues, but to help our partners address theirsustainability challenges. 3M has joined numerousorganizations globally to advance sustainability
through collaboration with the organization and its
members. Memberships have provided a forum forworking on key sustainability issues that are relevant
to both 3M and our stakeholders.
Memberships and partnerships help provide us
with diverse viewpoints on sustainability, a better
understanding of the positions of our stakeholders,and a mechanism to learn from the successes andfailures of our peers.

#improvinglives | 67

Who We Are | Engaging Our Stakeholders

To help assure the external organizations that we partnerwith share our commitment to business integrity, in2016 we introduced a third-party business conduct
assessment process.

Stakeholder Engagement
Strategy
3M’s stakeholder engagement strategy continues to
evolve. We continually look to our stakeholders to help
us increase understanding, broaden our awareness,seek technical input and expertise and evaluate possible
collaborations and strategic partnerships. We relyon their counsel and expertise to help guide us. We
believe stakeholder engagement should be based on
candid and authentic dialog, grounded in the company’svalues and should contribute to the evolution of ourstrategic priorities.
Levels of engagement with stakeholders vary greatly
by geography, type and function. For example, 3M
employees globally are engaged frequently throughsustainability communications and events with diverse
topics based on our material aspects, while we may
engage annually for an industry association meeting. We
may also have engagements around a specific issue.
We engaged with many internal and external
stakeholders in setting our new 3M 2025 Sustainability
Goals. Our 2014 and 2016 materiality assessments bothdemonstrated that our 2025 Goals remain aligned with
our stakeholder expectations—see the Materiality
section for more information. Our goals are alignedwith the key global challenges, as well as the United
Nations 2030 Sustainable Development Goals. As such,they present unique opportunities for partnerships andcollaboration, which 3M is actively seeking.

Who

Why

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

Why

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

Who

Why

tion changes

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

How• Forum for the Future• Friends of EU Emissions Trading Scheme (ETS)and help solve global environmental challenges• The Commission for Environmental Cooperation

How• TFT (The Forest Trust)• United Nations Global Compact• U.S. EPA Energy Star Program• Net Impact• Corporate Eco Forum• U.S. Department of Energy (DOE)• U.S. EPA Green Power Partnership• The Nature Conservancy

How• Retail Industry Leaders Association• Sustainable Brands• World Business Council for Sustainable Development• Practice Greenhealth• World Resources Institute (WRI)• WorldSkills• World Wildlife Fund (WWF)Who

Investors

Who

Why

Why

Why

exceed expectations• Supporting collective efforts to deliver business results• Collaborating to identify, resource and amplify sustain-

ability initiatives

How• Respecting human rights for workers across our value

chain• Habitat for Humanity• American Red Cross• Air & Waste Management Association• Feed my Starving Children• Numerous others local to our manufacturing operations• Dow Jones Sustainability Index

How

Suppliers, Contractors,
Industry Associations• Partnering with suppliers and contractors that meet or• United Way

to Economic, Environmental and Social Issues)• Upholding corporate valuesWho

our value chain• Providing economic and social value to communities while

minimizing environmental impact• Supporting safe and healthy communities• Disclosing timely, concise and relevant information (related• Responding to inquiries

Local Communities• Supporting and engaging in citizenship activities across• Delivering profitable returns on investment

around the world• Much more information can be found in the Collaboratingwith Our Communities section of this report• CDP• MSCI• National Investor Relations InstituteHow• Alliance to Save Energy• American Chamber of Commerce (AmCham)• American Chemistry Council (ACC)• American Industrial Hygiene Association• CAPS Research• The Conference Board• The Conflict Free Sourcing Initiative (CFSI)

Who

Employees

Who• European Chemistry Industry Council (CEFIC)

Academia andScientific Organizations• Green Chemistry & Commerce Council (GC3)• London Benchmarking Group• Minnesota Chamber of Commerce• National Association of EHS Managers• Respecting human rights and diversity

Why• Supporting, optimizing and promoting development andgrowth• Ensuring a safe and healthy work environment• Ensuring equal opportunity• Providing competitive compensation and benefits• Attracting and retaining the highest talent by being acompany for which employees are proud to work
• Committee to Encourage Corporate Philanthropy

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

68 | 3M 2017 Sustainability Report

Who

Why

• National Association of Manufacturers (NAM)• Engaging on technical scientific research to develop inno-• National Climate Coalition

vative solutions for society• Pressure Sensitive Tape Council• Harvard Medical School, The Center for Health and theHow

Global Environment• Iowa State University, Center for Bioplastics andBiocomposites

Who

Media

Why

• Ensuring 3M is represented accurately with current

How• Sustainable Life Media• University of Minnesota, Center for Sustainable Polymers• Environmental Initiative• Intergovernmental Panel on Climate Change• Society of Environmental Toxicology and Chemistry

information#improvinglives | 69

Who We Are | Diversity and Inclusion

Diversity andInclusion
Our Commitment
At 3M, we are a collaborative, diverse group of people
whose ideas transform the future. The way we look at
it, a diverse, global workforce—people with different
experience, ethnicity, age, gender, faith, sexual orientation, personalities, styles and ways of thinking—is acompetitive advantage.
This advantage helps us relate more closely to the needsof all 3M customers, suppliers and channel partners
around the world reflective of our customers andmarkets. At the same time, it helps fuel our curiosity, ourcreativity and our growth as a company.
3M is committed to fostering an inclusive environment,
built on our Respectful Workplace Principle, where
employees thrive, feel safe and respected, involved,
valued, and free to be their real selves. Additional information on our Respectful Workplace Principle can befound in our Human Rights section.

70 | 3M 2017 Sustainability Report

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

Increasing diversity in every region in which we operate
is a core part of our Sustainability strategy. Doubling ourdiverse talent in management positions will ultimately
help build a diverse pipeline for executive leadership as
well. That said, we recognize that definitions of diversity
vary between countries and cultures. In the U.S. and inmany other countries, we provide our people with theopportunity to opt-in and confidentially provide information such as disability status, veteran status, sexual
orientation, race/ethnicity and gender.

“Diversity and inclusion allows everyone in theworkplace to bring his or her ‘full self’ to workand be respected and valued.

”

Ivan Fong, Senior Vice President
Legal Affairs & General Counsel, 3M Company#improvinglives | 71

Who We Are | Diversity and Inclusion

Our Actions
Every day, we work to assure that the 3M workforce isrepresentative of the people with whom we do business.
This entails:•••

Seeking and attracting diverse and qualified
candidatesaligned with our corporate Vision and Strategies. 3M
ERNs enable employees to enhance their leadershipskills and collaborate across cultures, lifestyles andgenders. These communities also work with our businesses to provide relevant customer insights that can
expand our marketplace reach. 3M has ERNs establishedin St. Paul, Austin and other international locations.
•

A3CTION—For Asians and Asian Americans

Building our global pipeline of diverse candidates•

African American Network

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

disAbility Awareness Network•

GLBT + Allies Network•

Latino Resource Network•

Military Support Network•

Native American Network•

New Employee Opportunity Network (NEON)

In addition to our day-to-day efforts to support diversity
in 2016, we also actively promoted initiatives to both
engage our people and attract the best talent.

Engaging our People
It takes every single person in 3M to strengthen our
inclusive culture. Inclusive behaviors are included in thedescriptors of the Leadership Behaviors and expectedof everyone. 3M is providing education to strengthencultural agility and limit unconscious bias, reinforced bya strong global communication campaign, “I’m in”.

I’m inI’m in, using a series of ‘in’ words, is a global initiativethat was designed to create awareness and understanding of diversity and inclusion in our employees
worldwide, and to encourage the actions of every 3M
leader and employee to positively influence our culture.
Launched in 2014 in 50 countries, ‘I’m in’ strengthens
and builds upon a culture where all employees feelvalued and free to bring their authentic selves to work
each day. In addition to its use of programs from thecenter of 3M, organizations are encouraged to use thecampaign as part of their own group’s work. In 2016,
the company expanded the program to include an ‘I’m
in’ Conversation Series, a quarterly opportunity for
employees to engage in frank conversation arounddiversity issues.

Employee Resource Networks
Employee Resource Networks (ERNs) are employee-led
groups that serve as an integral part of recruiting,engaging and retaining diverse talent and mindsets
72 | 3M 2017 Sustainability Report

3M Women’s Leadership Forum
The Women’s Leadership Forum (WLF) is a globalorganization whose mission is to attract and develop
female leaders at every level of the organization and toaccelerate the inclusion and advancement of women
globally to reflect our customers and markets and growour business. 3M has 78 WLF chapters worldwide.
Chapter leaders include women and men volunteers
who customize action plans and events to meet theunique needs of their locations. Chapters collaborate
with ERNs and other Forums to drive culture change.

Celebrating Diversity
3M locations everywhere plan and implement special
campaigns and events to raise awareness, involve andinspire action among our people.

International Women’s Day
International Women’s Day was created by the United
Nations General Assembly in 1977. In March 2016, 3M
recognized International Women’s Day celebrations in
64 countries, during which employees were encouraged to wear red and honor the women who haveinspired them.

World Day for Cultural Diversity
In 2002, the United Nations General Assembly declared
May 21 to be annual World Day for Cultural Diversity,
which encourages people around the world to beproactive in supporting diversity and inclusion. The “Do
One Thing” campaign was launched worldwide. 3M
has been a strong supporter of this campaign from the
beginning.

3M Global Inclusion Month
The month of September is designated as Global
Inclusion Month at 3M. Several events and activities
are held at 3M sites around the world to show how
employees can contribute to an inclusive environment,
and to raise awareness about unconscious bias.

Inclusion Steering TeamIn 2016, we created an Inclusion Steering Team in the
U.S. to create opportunities for increased visibility of the
WLF and the ERNs.

•

Society of Women Engineers (National andRegional events)•

U.S. Business Leadership Network

Invent a New Future
Challenge
Each year since 2014, 3M has sponsored the Invent a
New Future Challenge, a business case competition thatcelebrates the extraordinary thinking of college students
around the world. Third- or fourth-year undergraduate
students and those pursuing an advanced degree inmarketing, sales, supply chain/logistics, engineering,science, and/or technical studies are encouraged toparticipate. In 2016, students in 14 countries competedin the local round. Twenty-seven finalists were thenflown to the U.S. for the global case competition finals
at 3M’s world headquarters in St. Paul. The final winningteam received a 6-month mentorship with 3M seniorleaders in their respective countries. Another positive
outcome of the competition: more than 25 students
were hired for full-time positions with the company.

Members of this steering team are a diverse group ofsenior leaders who represent our five business groups
and our corporate functional organizations. They takean active role in both defining and following up on thestrategic actions connected with our 2025 Sustainability goal of doubling the pipeline of diverse talent inmanagement.

Attracting Global Talent
During 2016, we participated in several recruiting events
to connect with people and talk about employment
opportunities at 3M, including:•American Indian Science and Engineering Society•

Martin Luther King Jr. Day Career Fair•

National Black MBA Association•

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

National Society of Black Engineers•

Reaching Out MBA•

Society of Hispanic Professional Engineers

2016 Invent a New Future Challenge Students

Working with those whohave served
3M is a strong supporter of initiatives that provide help
to veterans of U.S. military service.
Hiring Our Heroes is a nationwide initiative that helps
veterans, transitioning service members, and military
spouses find meaningful employment opportunities. The
effort is backed by an advisory council comprised of 25#improvinglives | 73

Who We Are | Diversity and Inclusionof America’s biggest employers, including 3M. Elementsof the campaign include:•

Establishing best practices for employing
veterans•

Providing mentors to help transitioning veteransand their spouses•

Enlisting a similar commitment from small andmedium-sized business

Hirepurpose provides career guidance and a recruiting
portal for transitioning military service members. Its
overall mission is supported by Hirepurpose’s employer
partners—Fortune 1000 companies that understand theimpact and value of hiring veterans, including 3M.
On the Hirepurpose career portal, candidates canresearch companies, receive job search advice, andmake sure their applications reach veteran advocates at
each employer partner. A team of Hirepurpose careercoaches also provides personalized guidance andsupport online, over the phone, and at bases acrossthe U.S.
The Employer Support of the Guard and Reserve(ESGR) Patriot Award recognizes the efforts madeto support citizen warriors through a wide-range ofmeasures including flexible schedules, time off prior toand after deployment, caring for families, and granting
leaves of absence if needed. 3M manager Joe Garvin
was presented with this award in 2016, after being
nominated by his Reserve Component employee,
Capt. Jami Roux.

The Forum on
Workplace Inclusion
3M was a principal sponsor of the 2016 Forum on
Workplace Inclusion, hosted by the University of St.
Thomas in Minneapolis. This 3-day conference wasdesigned to engage attendees, advance ideas andignite change around the topics of diversity, inclusionand equity. More than 750 people and 180 speakers
attended.

Looking forward…
In 2017, 3M will continue to reinforce and build
upon inclusion through efforts to bring down unconscious bias and through open dialogue spaces for
employees that have been created through the “I’m In”
Conversation Series.
Applying a diverse lens to business processes willcontinue to be an area of focus as we strive to reflect ourcustomers and markets.

G4

LA

12

3M Global Female Hires by Region
Percentage of Total Hires
60

50
Global40
Asia Pacific30
Canada20

Europe/Middle East/
Africa10

Latin America

0

United States

2012

2013

2014

2015

2016

(left to right) Capt. Jami Roux, Joe Garvin, and Dick Warren of
Minnesota Employer Support of the Guard and Reserve

74 | 3M 2017 Sustainability Report#improvinglives | 75

How We Work |How
We Work

Introduction

78

Corporate Governance

80

Enterprise Risk

86

Corporate Code of Conduct

90

Human Rights

98

Compensation

106

Employee Programs

110

Health and Safety

120

Environmental Management

128

Raw Materials

134

Water

142

Climate and Energy

146

Suppliers

76 | 3M 2017 Sustainability Report158#improvinglives | 77How We Work | Introduction

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

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

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

First, the R. Scientists in our central laboratory are free
to focus on pure research, in search of unscripted,
78 | 3M 2017 Sustainability Report#improvinglives | 79How We Work | Corporate GovernanceCorporate
Governance
Our Commitment
3M believes that good corporate governance practices
serve the long-term interests of stockholders,strengthen the Board and management, and further
enhance the public trust 3M has earned from morethan a century of operating with honesty and integrity.

3M’s Board of Directors has adopted Corporate
Governance Guidelines which provide a
34-41
framework for the effective governance of theCompany. The guidelines address matters such as therespective roles and responsibilities of the Board andmanagement, the Board’s leadership structure, theresponsibilities of the independent Lead Director,
director independence, the Board Membership Criteria,
Board committees, and Board and management evaluation. The Board’s Nominating and GovernanceCommittee is responsible for overseeing and reviewing
the Guidelines at least annually and recommending any
proposed changes to the Board for approval. The
Corporate Governance Guidelines, the Certificate ofIncorporation and Bylaws, the charters of the Board
committees, the Director Independence Guidelines, andthe Code of Conduct provide the framework for thegovernance of the Company and are available on our
Web site at www.3M.com, under Investor
Relations—Governance.
The Board’s leadership structure is characterized by:

G4

SD

80 | 3M 2017 Sustainability Report•

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

#improvinglives | 81How We Work | Corporate GovernanceCorporate Governance Guidelines

Our Actions

The Board of Directors believes this leadership structure
provides independent board leadership and engagement
while deriving the benefits of having our CEO also serve
as Chairman of the Board. As the individual with primary
responsibility for managing the Company’s day-to-day
operations and with in-depth knowledge and understanding of the Company, our CEO is best positioned
to chair regular Board meetings as the directors discuss
key business and strategic issues. Coupled with an independent Lead Director, this combined structure provides
independent oversight while avoiding unnecessary
confusion regarding the Board’s oversight responsibilities and the day-to-day management of business
operations.

3M Shareholders

Stockholder Engagement
In November 2015, the Board adopted a new“Proxy Access for Director Nominations” bylaw
40
that permits eligible stockholders to include in
our proxy statement nominees for election to the 3M
Board. Our decision to adopt proxy access grew out ofan open and constructive dialogue with our stockholders, and we believe our proxy access framework
strikes the right balance for 3M by ensuring that stockholder nominees to the Board are supported bylong-term stockholders representing a significant, but
attainable, proportion of outstanding shares.
G4SD

3M Board of Directors

Corporate Auditing Compliance& Business Conduct

Chairman of the Board,
President andChief Executive Officer

3M Foundation Board

Board Size and Independence• 11 out of 12 Directors are independent

Independent Lead Director• Overall attendance at Board andcommittee meetings• There were six Board meetings in2016

Director Age

Other Public Company Boards

Director Tenure
2

7

3

7

2

1

3

years

6

3

Corporate Environmental,
Health & Safety(EHS) Committee

Business Conduct
Committee

Other Committees &Centers of ExcellenceBusiness Group Management

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

• Europe/Middle East/Africa• Industrial• Latin America• Safety & Graphics• United States• Engineering/Packaging• Human Resources

3• Compensation Commitee

Corporate Staff Functions• Information Technology

AverageBoard
positions

years
2

3

1.5

66

1

Crisis Management
Committee• Independent Lead Director withrobust authority• Combined Chairman and CEO
positions• Audit Committee

Corporate Operating
Committee

Meeting Attendance99%• Nominating and Governance Committee• Finance Committee(Independent Corporate Contributions)

Corporate Governance Highlights

Board Committees• Community Affairs• Office of General Counsel

0-4 years

5-9 years< 59 years

60-65 years

0 boards

1 board10-14 years

15-17 years

66-70 years

71-72 years

2 boards

3 boards• Public Affairs• Marketing/Sales/Communications• Research and Development• Strategy and Corporate Development

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

82 | 3M 2017 Sustainability Report• Security#improvinglives | 83How We Work | Corporate Governance

Related to the proxy access Bylaw adopted by the Board
in November 2015, a stockholder, or a group of up to
20 stockholders, continuously owning for three years atleast three percent of our outstanding common shares,
may nominate and include in our proxy materials up
to the greater of two directors and 20 percent of thenumber of directors currently serving, if the stockholder(s) and nominee(s) satisfy the Bylaw requirements.
The notice must contain the information required by
the Bylaws.
During 2016, members of senior management met witha cross-section of stockholders owning approximately
35 percent of our outstanding shares. The meetings
included an overview of the Company and a discussionof the Company’s practices on corporate governance.
3M’s Chief Sustainability Officer also attended thesemeetings and summarized 3M’s more than 40 years ofenvironmental stewardship and our journey driving bothbusiness growth and societal impact through purpose.

Governance Actions
Our Committees are designed to assure the executionof 3M’s vision for the future. The Board currently
has 12 directors and the following four committees:
Audit, Compensation, Finance and Nominating andGovernance. During 2016, the Board of Directors held
five regularly scheduled meetings and one telephonicmeeting. Overall attendance at Board and committee
meetings was 99 percent.
We regularly add directors to infuse new ideas and fresh
perspectives into the boardroom. In the past four years,
six new independent directors have joined our Board.
In recruiting directors, we focus on how the experienceand skill set of each individual complements those of
their fellow directors to create a balanced board withdiverse viewpoints and backgrounds, deep expertise,and strong leadership experience.
As affirmed or amended February 7, 2017:•

3M Company Board of Directors Audit
Committee Charter•3M Company Board of Directors Compensation
Committee Charter•3M Company Board of Directors FinanceCommittee Charter•3M Company Board of Directors Nominating andGovernance Committee Charter84 | 3M 2017 Sustainability Report

Director Independence

Diversity•

We celebrated our 100th consecutive year of
paying dividends to stockholders.

The Corporate Governance Guidelines andDirector Independence Guidelines provide that41
independent directors must comprise asubstantial majority of the 3M Board. A director is “independent” if the Board affirmatively determines that thedirector has no material relationship with the Company
directly or as a partner, shareholder or officer of an organization that has a relationship with the Company andotherwise meets the requirements for independence ofthe listing standards of the New York Stock Exchange.
The independent directors will make the Board decisions
on corporate governance matters.

The Board of Directors values diversity as afactor in selecting nominees to serve on the
12
Board because its experience is that diversity
provides significant benefit to the Board and theCompany. Although there is no specific policy ondiversity, the Nominating and Governance Committee
considers the Board Membership Criteria in selecting
nominees for directors, including diversity of background and experience. Such considerations may
include gender, race, national origin, functional background, executive or professional experience, andinternational experience.

•

We were awarded 668 patents in the UnitedStates and 3,770 globally, bringing the company’s
all-time patent total to more than 109,000.

•

We returned $6.4 billion to stockholders via
dividends and gross share repurchases.

•

We improved our employment brand by earning
recognition as the “Top Dream Company” in the2016 Millennial Career Survey conducted by the
National Society of High School Scholars.

•

The Guidelines specify the criteria by which the independence of our directors will be determined, including
strict guidelines for directors and their immediate family
members with respect to past employment or affiliation
with the Company or its independent registered public
accounting firm. The Guidelines also prohibit Audit
and Compensation Committee members from having
any direct or indirect financial relationship with theCompany, and restrict both commercial and not-forprofit relationships of all directors with the Company.
Directors may not be given personal loans or extensionsof credit by the Company, and all directors are required
to deal at arm’s length with the Company and its subsidiaries, and to disclose any circumstance that might beperceived as a conflict of interest.

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

We made significant progress on our three key
levers: Portfolio Management, Investing in Innovation, and Business Transformation.

G4

SD

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LA

Commitment to theEnvironment andSustainability
In 2013, our CEO formed the Sustainability
Center of Excellence to focus on developing
43-46
and commercializing products which help ourcustomers solve their Sustainability challenges and on
assuring Sustainability within 3M operations andsupply chain. The primary role of the Center is todevelop strategy, set significant goals to track progress,and drive sustainable actions for the benefit of ourcustomers and our communities. In 2016, 3M formalized
Sustainability authority with our Chief Sustainability
Officer, CSO, with oversight by the Nominating andGovernance Committee.
G4

SD

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

Board of Directors•

Committee Composition•

Governance Documents•

Annual Reports and Proxy Statements

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

Sustainability will continue to be a vital focus as we work
to truly advance every company, enhance every home,
and improve every life.
Other Noteworthy 2016 3M Accomplishments:•

We celebrated the grand opening of our new$150 million laboratory in St. Paul, Minnesota.

#improvinglives | 85How We Work | Enterprise Risk

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

86 | 3M 2017 Sustainability Report

Risk Oversight
The Board has delegated primary responsibility
for the oversight of risks facing the company to
46
the Audit Committee. The 3M Company Boardof Directors Audit Committee Charter states that thecommittee will “discuss policies and procedures withrespect to risk assessment and risk management, thecompany’s major risk exposures and the steps management has taken to monitor and mitigate such exposures.”
G4SD

The Vice President and General Auditor, Corporate
Auditing, whose appointment and performance isreviewed and evaluated by the Audit Committee, is
responsible for leading the formal risk assessment andmanagement process within the company. The Auditor,
consulting with the company’s senior management,
annually assesses the major risks facing the company
and works with those executives responsible formanaging each specific risk. The Auditor periodicallyreviews with the Audit Committee the major risks facing#improvinglives | 87How We Work | Enterprise Risk

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

Our Actions
Corporate-Level
3M’s Enterprise Risk Management (ERM) initiative,
launched in 2001, has helped assure adequate recognition and ownership of the most significant potential risks
to the company’s shareholder value, using a processthat proactively identifies and communicates enterpriserisks within the company. This includes: confirmingthat appropriate plans and oversight exist for all majorrisks; providing for ongoing review and assessment of
risk; and aiding in generating awareness and engagement of general risk matters throughout the company.
The approach provides a customized capability thatleverages 3M’s comprehensive, experience-based global
knowledge and capabilities rather than tools often usedin financial or insurance oriented businesses.
To assure long-term success, we are committed to
discovering and preparing for all potential threats to our
Vision. Risk owners familiar with the environmental,
economic, and business aspects within the company areinterviewed and requested to complete a thoroughassessment for their respective risk(s). Together, withsubject-matter experts and senior management, theoutcomes are mapped to demonstrate the relative levelof risk and likelihood of risk. This ‘heat map’ identifies thehighest risk areas to focus internal efforts on. In addition,
external resources and data are continuously reviewed
to assist in the risk identification process. The results ofour various risk assessment exercises are shared with the
Corporate Operations Committee and the company’s
full Board of Directors.
88 | 3M 2017 Sustainability Report

3M places particular emphasis on protecting ourcompany against emerging risks in an ever-changing
world. Case in point: cybersecurity. Strong cybersecurity programs are essential, and we continue toinvest in information technology systems and activities
around cybersecurity training and awareness, especiallywhen it comes to avoiding phishing and other threatstargeting 3M.

1:1 Board Member-General
Auditor Meetings
In 2016, the Vice President, General Auditor met witheach independent 3M Board member, to discuss risk
management in general as well as specific risk-related
topics facing the company. These meetings gave Board
members an opportunity to share what risk issues were
top-of-mind for them, and which should be reviewed
and addressed by the Board. For most Board members,
the most critical risk in 2016 and into the future wascybersecurity.

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

Facility-Level
Our Environmental, Health, Safety and Sustainability(EHS&S) organization looks carefully at each 3M site
and new acquisition, and performs a crisis risk analysis
that considers factors such as potential impact to theenvironment, the community, and 3M employees. Eachsite is ultimately ranked based on the risk they pose to
the company, and necessary steps are taken to minimize
potential risks. Acquisitions are of particular focus asEnterprise Resource Planning (ERP) Strategy and Timeline
Foundation

Deploy and Optimize

Achieve Global ERP

Pilot Countries
Established
Methodology

Global Service Centers
Western Europe

Ramped-up
Organization

United States
Central & Eastern Europe/Middle East Africa

Developed
Blueprint

APAC
Supply Chain Centers of Expertise
Latin America

2011

2012

2013

2014

Pilot Countries: Taiwan, Indonesia,
Philippines, Russian Federation and Canada

we bring each new sight under 3M’s protocol with theproper training.
In addition to EHS&S risk analysis, we have a crisis planfor every single 3M plant in the world. Although we hopeto never use our Crisis Management Plans, it’s criticallyimportant that we have them in place, keep them up todate and drill often to make sure everyone understands
what to do should an emergency occur. We care about
the safety of our people and communities aroundthe world.

2015

2016

2017

2018

2019

2020

Today

Looking forward…
Over the next several years, 3M will continue deploying
a single enterprise resource planning (ERP) system on aworldwide basis, to provide a consistent, comprehensive
and discrete information platform for our businesses
everywhere. It’s another example of our commitment tocontinual growth and adaptation to emerging risks in anever-changing world.

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

#improvinglives | 89How We Work | Corporate Code of Conduct

Corporate Codeof Conduct
Our Commitment
Through the years, 3M has built a reputation globally for taking an ethical
6, 10, 56-57
1
approach to business. That said, with
91,600 employees and subsidiary operations in 70-plus
countries, it’s no simple task to always do business theright way.
G4

Living by our Code of Conduct enhances our reputationand promotes trust with our customers, in our company
and in the quality of our products.

G4

SD HR

To make it as simple as possible, we have developed
one Code of Conduct that applies globally. Our Codeof Conduct Global Handbook summarizes 3M’s
compliance principles and raises awareness of our corerequirements for doing business “the right way, always
and everywhere.”
3M has long had business conduct principles basedon the company’s core values. Those values have notchanged over time. 3M conducts our business with
uncompromising integrity. The Code is our guide foranswering questions and providing direction when theright choice may not be clear.
90 | 3M 2017 Sustainability Report

3M’s Code of Conduct defines how we live and work:
Be Good
Be Honest
Be Fair
Be Loyal
Be Accurate
Be Respectful
3M employees, including supervisors, managers andother leaders, are responsible for knowing and following
the ethical, legal, and policy requirements that apply
to their jobs and for reporting any suspected violationsof law or the Code. Executives and managers areaccountable for creating and promoting a workplaceenvironment in which compliance and ethical businessconduct are expected and encouraged.

#improvinglives | 91How We Work | Corporate Code of Conduct

The Global Handbook is available in 22 languages andsets clear expectations for not only employees, butalso relevant stakeholders and business partners. All
employees receive a copy of the handbook and can also
access it electronically.

Business Conduct Committee
The 3M Business Conduct Committee is composedof several senior executives and is chaired by 3M’sChief Compliance Officer (CCO). The Committee has
oversight for 3M’s various compliance efforts and, as
appropriate, updates the Audit Committee of the 3M
Board of Directors and Corporate Operating Committee.

Global Compliance Program
3M’s global compliance program is managed andadministered by the Compliance and Business Conduct
Department, led by the Vice President, Associate
General Counsel, Compliance and Business Conduct,
who is also 3M’s CCO. The department is staffedwith compliance professionals stationed at company
headquarters and around the world. The CCO reports
to the Audit Committee of the 3M Board of Directors,
which assists the Board in oversight of 3M’s legal andregulatory compliance efforts. The Compliance andBusiness Conduct Department oversees and administers
strategic, systematic and operational components of
3M’s compliance program.
The compliance program is designed to meet the
U.S. Federal Sentencing Guidelines and similar global
standards which identify the following attributes of aneffective compliance program:•

Investigative expertise•

Incentives and discipline to address compliancesuccesses and failures

Compliance Training
and Education
3M offers a comprehensive online compliancetraining program to all employees worldwide.
4
The program’s training modules are assigned to
employees based on their role and area of responsibility
within the company. Most courses are mandatory for
approximately 46,000 global employees, who are
required to take modules on a two- or four-year cycle,
depending on the course. Offered in 22 languages, thetraining modules include:
G4

SO

•

Careful Communications•

Gifts, Entertainment and Travel•

Avoiding Bribery and Corruption: A Global
Overview•

Global Competition•

Creating a Harassment Free Workplace•

Code of Conduct and Ethical Decision Making

600•

Conflicts of Interest

550

A core set of business conduct principles•

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

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

Reporting Concerns

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

SD SO

92 | 3M 2017 Sustainability Report

The system does not trace phone calls or use caller
identification, nor does it generate or maintain internal
connection logs containing Internet Protocol (IP)addresses. Web-based reports are made through asecure internet portal, which does not trace or showuser screen names. 3M’s Employee Obligations andReporting Principle prohibits retaliation against anyone
who raises a business conduct concern in good faithor cooperates in a company investigation. Below is agraph illustrating five-year metrics for business conduct

Global Data Protection and Privacy—Respecting
a Person’s Privacy

The 3M Compliance and Business Conduct website on
3M’s intranet offers additional training on 3M’s global
anti-bribery compliance program. In addition to online
training, the Compliance and Business Conduct Department, in close collaboration with 3M Legal Affairs,
provides frequent, tailored in-person training to businesses, subsidiaries, staff groups and third parties. Someof this training occurs as part of an annual scheduleand other training occurs as requested or deemed
appropriate.

Upholding 3M’s Code of Conduct andvalues is the responsibility of everyone
58
5acting on 3M’s behalf. We encourage
our employees to ask questions or report their concerns
to management, 3M Legal Counsel, the Compliance and
G4

In addition, a 24-hour confidential and anonymous (aspermitted by local law) helpline and online reporting
system managed by a third-party vendor is available
internally and externally. Reports are reviewed andresponded to by the Compliance and Business Conduct
Department or other responsible staff departments.

•

•

•

Business Conduct Department, or to their Human
Resources Manager. 3M makes clear that speaking up is
the right thing to do. We know our employees careabout the Company and want to do the right thing.

G4

related reports raised using our reporting tools found atwww‌.‌3M‌-‌Ethics‌.‌com.
The Compliance and Business Conduct Department
has the responsibility to review every business conduct
concern that is reported. The Department determines
which reports require investigation and if investigation isneeded, assigns the appropriate investigation resource.
For concerns that are substantiated, disciplinary action
is taken. Discipline comes in a range of forms, fromwarnings, to suspensions, to termination, consistent withsimilar past violations. Disciplinary actions may impact
one or more persons associated with a single substantiated violation.
In 2016, the number of questions or concerns reported
to the Compliance and Business Conduct Department
increased by 24 percent. We believe this increasereflects employees’ greater awareness of their reporting
obligation and the available reporting channels. This
increased awareness is a reflection of our actions in2016 which include an updated and rebranded Code

3M Global Allegations and Disciplinary Actions
Total Number

500
450
400
350
300
250
200
150
100
50
0
2012

2013
Allegations Reported

2014
Substantiated Allegations

2015

2016

Disciplinary Actions#improvinglives | 93How We Work | Corporate Code of Conduct

of Conduct along with a communication campaign topromote the updates. This communication campaign
included the development of four new “Speak-up”
posters with the fresh brand and made available in 22
languages. Employee awareness to “Speak-up” also
increased through periodic risk-based compliancereviews of our businesses operations and through area
and regional initiatives by our local compliance teams.

Assessments
A dedicated team within 3M’s Compliance andBusiness Conduct Department conducts
3
periodic compliance and anti-bribery evaluations in various 3M subsidiaries and operating units eachyear. These evaluations are selected using objective andsubjective risk factors, and include reviews of sample
financial transactions, compliance records and interviews with subsidiary and business unit personnel. In
2016, over 425 nonproduction employees were interviewed as part of the evaluation process. Additionally, in
2016, we introduced audits of external third parties aspart of the scope of an evaluation in order to better
understand our business partners.

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

G4SO

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

Commitment toAnti‑Corruption
As a member of the United Nations
Global Compact, 3M is committed to15
4-5
support Principle 10 on Anti-Corruption. Our commitment and our involvement in working
groups associated with Principle 10 give us the opportunity to learn best practices related to anti-corruption
from other peer companies, conduct benchmarking withsimilar companies, and help educate other professionals
working on anti-corruption through the participation of
our 3M Chief Compliance Officer (CCO) and otherCompliance and Business Conduct Department professionals’ participation in anti-corruption conferences andorganizations.
G4

3M’s commitment to anti-corruption also applies to theuse of third-party intermediaries and other business
partners. Based on an assessment of transaction,
geography and other risk factors, 3M conducts reviewsof these third parties. Depending on the outcome of thereviews, we respond to any identified risks with training,
inclusion of relevant contractual terms and otherrisk-mitigating controls.
Further, the Compliance and Business Conduct
Department collaborates with 3M Legal Affairs on due
diligence processes related to potential new venture
investments and mergers and acquisitions. These
processes help identify risks in the target company
before acquisition and accelerate our efforts to integrate
the acquired company’s employees to 3M’s complianceprogram and culture. Ultimately, the Complianceand Business Conduct Department is charged with
conducting a complete risk review and implementing
any necessary remediation activities upon the closingof every acquisition, using an established protocol andexpert staff.

“For 114 years, one simple truth has remained

the bedrock of who we are: our commitment
to integrity.

”

Kristen Ludgate,
3M’s Vice President, Associate General Counsel
and Chief Compliance Officer

Our Actions
Code of Conduct Updates

2. Product Quality: Providing products that consistently meet customer, community and our own
high expectations is fundamental to our success.

The written definition of 3M integrity—our Code of
Conduct—was updated in 2016. We made somechanges to parts of the Code to simplify and improvethe clarity of certain principles. We rebranded ourhandbook, our website, our online training platform andother materials, to reflect the corporation’s new brandidentity, and what it means to “Be 3M.” In addition, we
added a new Product Safety Principle, to bring greater
focus to an area of operations that has really been partof 3M’s culture from the beginning.

As part of a communications campaign to promote
the new Code of Conduct handbook and doing theright thing, a series of “Speak-up” posters was created,
explaining how to raise a concern or suspected violationof the Code. The posters are available in 22 languages.

94 | 3M 2017 Sustainability ReportSO

http://solutions.3m.com/wps/portal/3M/en_US/
businessconduct/bcmain/

This principle applies to all 55,000-plus products
3M makes and sells. It touches on everyone’s role at
3M, from product development to manufacturing tomarketing and support. Under this principle we workwith suppliers and business partners so that their operations support these same objectives.

“Speak-up” Posters

G4

For additional information on our Code of Conductplease visit:

3. Stewardship: 3M works to produce productswith superior environmental performance acrosstheir entire life-cycle.

To see how this principle is applied, go to the Innovation
Management section of this report.

Political Values
3M respects our employees’ right to engage inthe political process and, at the same time, 3M6
is committed to prevent potential corruption.
Any corporate political contributions outside the UnitedStates require approval by the Area Vice President andassigned legal counsel.

The entire principle is described in a video and in
the new Code of Conduct handbook. The three coreelements of this principle:
1. Product Safety: As part of our mission to improve
every life, 3M will provide our customers
with quality products that are safe for theirintended uses.

G4

SD SO

quality and stewardship is not new at 3M. Through our
Product Stewardship Policy, we already had high expectations for our products. Elevating this policy to aprinciple was just our way of validating what 3M has
been doing for a long time, and confirming that it
belongs at the very top of our governance pyramid.

Third Party Brochure
New Product Safety, Quality,
and Stewardship Principle
G4

PR

2-3

A Product Safety, Quality, and Stewardship
Principle was added to our overall Code of
Conduct in 2016. Emphasizing product safety,

To enhance our communications with third parties,
3M created a brochure for our business partners. The
brochure provides another way for 3M to communicate
with our business partners regarding our commitment
to combat global bribery. The brochure is available in
27 languages.

#improvinglives | 95How We Work | Corporate Code of Conduct

Looking forward…

“Speak-up” Postersการปฏิบัติตามนโยบายและจรรยาบรรณทางธุรกิจของ 3เอ็มความซื่อสัตย์ คือนโยบายที่ดีที่สุดของเรา
จงเป็น 3เอ็มกล้าที่จะแสดงออก
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Our strong ethical culture to do business the right way
gives us the confidence to grow our business anywherein the world. Our employees know they don’t have tocompromise their ethics to do business. Our customers
know we are a company they can trust.

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ourselves on being a company driven not just by innovation, but also by integrity.

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Dodržiavanie súladu a obchodného správania spoločnosti 3M

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New Non-Retaliation
Verification Process
For investigations brought to light through the reporting
process, several months after the investigation closes,
the investigator checks to see whether the reporterhas experienced any retaliation. This is done either byphone or via email for non‐anonymous reporters. For
anonymous reporters who used the 3M-Ethics hotline,
the check‐ins will be handled via our 3M-Ethics hotline.
If claims of retaliation are identified, the investigationteam will follow up on them.

The importance of a strong ethical reputation isrecognized at every level in our company. We continually work to enhance our compliance program andethical culture by engaging 3Mers everywhere in ourcompliance program, from engaged leadership communications, global leadership training, utilizing system
controls, reducing process, improving transparency
and enhancing our efforts around monitoring andassessing risk.

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Vous pouvez aussi contacter votre responsable, le service de la conformité et de la conduite professionnelle, le service juridique ou le service des ressources humaines.

96 | 3M 2017 Sustainability Report

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#improvinglives | 97How We Work | Human Rights

Human Rights
Our Commitment

The principles that guide us
Within our own business, 3M’s approach for
managing and assuring human rights aligns with
4-6
3M’s Code of Conduct, which recognizes theright of employees to have a respectful workplace. We
continue to implement our human rights program
through our global policy statements, a management
system utilizing self-assessments, audits, training, andultimately, metrics tracking. Our audit process is truly
global, and we are increasing the number of assessments
we are performing, which gives us a global perspective
on our own internal locations, particularly our manufacturing locations.
G4

At 3M, there is only one way
to do business. The right way.
3M is committed to assuring human rights in our own
operations and in any business that works on our behalf.
Our Human Resources Social Responsibility Policy
applies to all 3M employees, contingent workers, anyone
doing business with or on behalf of 3M and candidates
for hire at 3M. Our Global Human Rights Policy was
adopted in 2013, and we became a participant of the
U.N. Global Compact (UNGC) in early 2014, thereby
committing to align our operations and strategies with
the UNGC principles on human rights.

98 | 3M 2017 Sustainability ReportHR

We support the UN Guiding Principles (UNGP) on
Business and Human Rights, and its “protect, respect
and remedy” framework. Our human rights management system helps us manage salient human rights
issues. We also support the principles of due diligence
outlined in the UNGP. Furthermore, our Code of
Conduct requires compliance with all applicable laws

#improvinglives | 99How We Work | Human Rights

and respect for internationally recognized human rights
in all of our global operations.
We also recognize the ILO Declaration on Fundamental
Principles and Rights at Work. Adopted in 1998, theDeclaration commits Member States to respect andpromote principles and rights in four categories, whether
or not they have ratified the relevant Conventions:
freedom of association and the effective recognitionof the right to collective bargaining; the eliminationof forced or compulsory labor; the abolition of childlabor; and the elimination of discrimination in respect of
employment and occupation.

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

Respectful Workplace
3M is committed to attracting and retaining a diverse
workforce by creating the kind of inclusive work environment 3M employees want and can be proud of. Our
Equal Employment Opportunity (EEO) policies prohibit
all forms of discrimination or harassment against applicants, employees, vendors, contractors or customers
on the basis of race, color, creed, religion, sex, national
origin, age, disability, veteran’s status, pregnancy,
genetic information, sexual orientation, marital status,
citizenship status, status with regards to public assistance, gender identity/expression or any other reason
prohibited by law. Our affirmative action policies andprograms are designed to assure equal opportunities for
qualified minorities, women, covered veterans and individuals with disabilities, and also to provide reasonableaccommodation to individuals with disabilities.
3M’s Respectful Workplace Principle states that“everyone is entitled to respectful treatment in the
3M workplace. Being respectful means being treatedhonestly and professionally, with each person’s uniquetalents, background and perspectives valued. A
respectful workplace is free from unlawful discrimination and harassment, but it involves more thancompliance with the law. It is a work environment that

100 | 3M 2017 Sustainability Report

is free of inappropriate or unprofessional behavior
and consistent with 3M’s ethics and values—a place
where all employees can do their best, and are free toreport workplace concerns without fear of retaliation
or reprisal.”

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

Freedom of Association andCollective Bargaining
3M works diligently to create a work
culture that affords all employees the
114
opportunity to work without fear of
intimidation, reprisal or harassment, in an environment
where employees are able to get their questions
addressed in a fair and timely manner. In all locations,the company’s relationship with employees, whether
union or nonunion, is a key responsibility of all leaders,assisted by human resources representatives. Human
resources professionals work with all employees tomaintain positive employee relations.
G4

G4

SD HR

Our Human Rights Policy has a specific subdivisionon the freedom of association, which assures that we
respect “the ability of employees to choose whether or
not to join unions and engage in collective bargaining,as permitted by applicable laws in the countries where
3M does business.” In the event of business operations
changes, we follow all applicable local laws and regulations regarding notice periods for both union andnon-union employees.
Approximately 29 percent of 3M’s global workforce isunionized. We are aware that in some countries, collective bargaining rights are not protected or recognized.
Nevertheless, 3M assures that freedom of associationand collective bargaining aspects of our Human Rights
Policy apply to all 3M employees worldwide.

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

HR

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

HR

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

Filing, Addressing, and Resolving
Workplace Concerns
When concerns related to human rights, labor practices,
environmental or safety issues arise, our employees areencouraged to raise questions or report misconduct
or potential misconduct to management, 3M LegalCounsel, the Compliance and Business Conduct
Department, their Human Resources Manager, or to
3M-Ethics‌.‌com. See 3M’s Business Conduct website
for more information regarding how to report a concern.
Additional information on reporting concerns can befound in the Code of Conduct section.
3M does not tolerate retaliation against anyone who
raises a concern, asks a question, or cooperates witha company investigation. Employees who intentionallymake false accusations or provide false information
will be disciplined, because such actions violate 3M’s
business conduct principles and are inconsistent with
3M values. If employees believe they are being retaliated against for raising a good-faith business conduct
concern, they may report this to any of the resources
listed in the Employee Obligations and Reporting
Principle.
In addition, we conduct audits of site workplace andhuman resource practices, as well as assessments andaudits of suppliers to assure compliance with 3M’s
expectations related to labor practices (see the Suppliersection of this report for more details).

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

Our Global New Employee Compliance Course Programis based on employee records in the 3M Human#improvinglives | 101

How We Work | Human Rights

Resource (HR) system. Employees are assigned courses
based on their job function, country location, production/non-production, and supervisor/non-supervisor
status. Email notifications are sent to the employee’s
3M internet email address informing them of theircourse requirements and timeline for completion. New
employee courses are due within 60 days of assignment.

Our Actions
Enhanced Training on
Human Trafficking
3M, in 2016, added specific content to our Code of
Conduct course providing general awareness of humantrafficking risk. This course is part of the new employee
onboarding process and is deployed every other year
to most of 3M’s current non-production employees.
In addition, a specific course covering this risk was
deployed to employees in roles and function where
awareness of this risk is most relevant, including global
supply chain and sourcing.

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

the terms and conditions of their employment contract,which states not only their own, but their organization’s
responsibilities for information security.
Management must require employees, contingent
workers and suppliers to apply security in accordancewith established policies and procedures. All 3M
employees and, where relevant, contingent workers andsuppliers, must receive appropriate awareness training
and regular updates in organizational policies and procedures, as relevant for their job function.

Human Rights Charters
G4

SD

15

•

United Nations Global Compact•

Universal Declaration of Human Rights•

European Convention on Human Rights•

United Nations Guiding Principles on Business andHuman Rights•

International Labor Organization’s Declaration on
Fundamental Principles and Rights at Work•

OECD—Organization for Economic ­Co-operation
and Development Guidelines for Multinational
Enterprises, including OECD Due Diligence
Guidance for Responsible Supply Chains of Minerals
from Conflict-Affected and High Risk Areas•

Agenda 21—UN Convention against Corruption

G4HR

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

Human Rights Due Diligence

Roles and responsibilities of information security
employees, contingent workers and suppliers must
be defined and documented in accordance with the
3M Information Security Management System (ISMS).
Background verification checks on all candidates for
employment, contingent workers, and suppliers must
be carried out in accordance with relevant laws, regulations and ethics, and be proportional to the business
requirements, the classification of the information to beaccessed, and the perceived risks.

The 3M Code of Conduct describes thecompany’s business conduct principles, or core2
values, which set forth global corporate expectations for all 3M employees and certain third parties
who act on 3M’s behalf. Those values have not changed
over time. The principles in this Code remain consistent
with 3M’s longstanding business conduct principles, itsvalues and our shared ethical standards for conducting
business with uncompromising honesty and integrity.

As part of their contractual obligation, employees,
contingent workers and suppliers must agree to and sign

In our view, human rights due diligence requires aholistic approach. So we assess our own business,others acting on our behalf, suppliers, government102 | 3M 2017 Sustainability Report

G4

SO

relationships, acquisitions, mergers, and divestitures—to identify the salient human rights issues applicableto our business. We have a grievance mechanism inplace, 3M-Ethics, which can be used to raise a concern
regarding any adverse human rights impacts. We also
comply with all applicable laws, and honor the principles
of internationally recognized human rights when facedwith conflicting requirements.

Human Rights Assessments
Our assessment on human rights aligns with our
corporate Human Rights Policy, as outlined
4-5, 9under Our Commitment, and includes: safe andhealthy workplace, respectful workplace, workplacesecurity, work hours and wages, freedom of association,
child labor, forced labor or recruitment fees to obtain
employment. Evaluations are integrated into otherassessment and management processes, based onmaterial issues regardless of where they’re identified
within the value chain.
G4HR

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

Within our own businessWithin our own business, our approach for managing
and assuring human rights aligns with the 3M Code of
Conduct, recognizing the right of employees to have arespectful workplace.
3M’s Field Employee Relations Assessment tool, is ameans for 3M locations globally to analyze their policies
and practices on a site self-assessment of the workplace.
This tool enables local managers to identify strengths,
opportunities for improvement, and action plans toaddress those opportunities, including a review ofpractices related to 3M’s Human Rights Policy. Various
data is tracked through the process to identify potential
gaps and opportunities for improvement. To date,approximately 70 percent of sites have been assessed
including operations in the United States, Canada, Latin

America, Asia and Europe. Sites can then request theassistance of 3M Corporate Staff, including Employee
Relations and the Office of General Counsel, for help
addressing any issues that may be identified.
For additional details on our employee processes, see
the Employee Programs section.

Others acting on 3M’s behalf
Upholding 3M’s Code of Conduct and values is the
responsibility of everyone acting on 3M’s behalf.
Multiple processes are in place to assure 3M’s principles
are being upheld by others acting on 3M’s behalf. Casein point: our approach to health and safety.
Under our Workplace Environmental, Health, andSafety Principle, 3M’s Code of Conduct requires 3M
employees to select and retain suppliers, contractors,
or outsourced manufacturers and service providers
who comply with all applicable laws and regulations
and meet 3M’s environmental, health and safety values.
In addition, at 3M locations, all visitors, vendors, andcontract 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 ourmaterial and service providers must also reflect ourvalues. We want our suppliers to share our commitment
to maintaining compliant, responsible and sustainable
operations and practices. In addition to full compliancewith all applicable labor and human resource laws, we
expect our suppliers to be committed to upholding
the human rights of workers, and to treating them with
dignity and respect as understood by the international
community. This applies to all workers including
temporary, migrant, student, contract, and direct
employees. These expectations are laid out in the 3M
Supplier Responsibility Code.
We have a 2025 goal to drive supply chain Sustainability
through targeted raw material traceability and supplierperformance assurance. For details on our prioritizedsupplier assessment process, see the Supplier section.
#improvinglives | 103

How We Work | Human Rights

Government Relations
Under our Be Fair Principle, 3M is committed tobeing a responsible company with uncompro6
mising integrity in all its dealings with local,
state/provincial and national governments, and theirprime contractors and subcontractors around the world.
In all of our activities with governments, we carefully
follow all applicable laws, rules, and regulations.
G4

HR

Before entering into any government contract, or any
agreement related to a government customer, 3M
employees must consult 3M’s Government Contract
Compliance Department or their business unit’s assigned
legal counsel.
Human Trafficking and forced labor-related provisions are also included in 3M’s government contract
flow-down requirements for suppliers. In the UnitedStates, the government has adopted a regulation (FAR
52.222-50) prohibiting human trafficking, including
slavery, servitude, forced and compulsory labor andcoercion to induce a commercial sex act or to procure
the same—all of which result in the deprivation of aperson’s liberty by another in order to exploit them forpersonal or commercial gain. 3M has implemented
processes to assure compliance with the U.S. FAR,
including a Human Trafficking Prevention Standard.
For more information, see Doing Business with Government Agencies and Contractors Principle.

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

SO

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

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

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

Safety & Graphics
104 | 3M 2017 Sustainability Report#improvinglives | 105

How We Work | Compensation

Compensation
Our Commitment
3M is committed to providing competitivemarket pay and comprehensive benefits. In
53
addition to providing a professional work environment that promotes innovation and rewards
performance, 3M’s total compensation for employees
includes a variety of components for sustainable
employment and the ability to build a strong
financial future.
G4

SD

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

106 | 3M 2017 Sustainability Report

As detailed in the 3M Board of Directors Compensation
Committee Charter, all aspects of this compensation are
reviewed regularly by the Compensation Committee,
which is composed solely of independent nonemployee
directors. The committee, along with an independentcompensation consultant, assesses the design and risks
associated with executive compensation and recommends changes when appropriate. Its recommendations
related to compensation for 3M’s Chief Executive
Officer are subject to ratification by all of the independent members of the Board of Directors.
The Compensation Committee reviews stakeholder
proposals relating to executive compensation mattersand recommends to the Board the Company’s response
to such proposals.
In 2016, at 3M’s annual meeting, stockholders approved
a new, long-term incentive plan for executives. Includedin this plan, which received a 96 percent approval
rating from existing shareholders, is a formula for calculating performance based on four criteria: (1) earnings
per share; (2) free cash flow conversion; (3) return on
invested capital and (4) organic local currency sales
growth. Using four different metrics, rather than justtotal shareholder return, allows for a more equitable,
check-and-balance approach to evaluating performance.
#improvinglives | 107

How We Work | Compensation

Like most of 3M’s U.S. employees, 3M executives
are also eligible to participate in three deferredcompensation plans, which enable them to save forretirement or other reasons, and receive certain otherbenefits. Approximately 100 executives participatedin this program in 2016, including all of the Named
Executive Officers.
3M’s 2017 Notice of Annual Meeting and Proxy
Statement provides additional detail on executive
compensation. Anyone who owns shares of 3M common
stock can vote at the Company’s annual stockholder
meeting, using a proxy. The proxy can be submitted byphone, by mail or on the internet. The Proxy Statementthat accompanies the actual proxy itself describes
the matters that are to be voted on, and provides
information on those matters so stockholders can makean informed decisions. Results of votes are filed with
the Securities and Exchange Commission within fourbusiness days of the annual meeting, and are madeavailable on the 3M website.

Director Compensation
The Nominating and Governance Committee
periodically receives reports on the status of
51-52
Board compensation in relation to other large
U.S. companies and is responsible for recommending to
the Board changes in compensation for non-employee
directors. In developing its recommendations, theCommittee is guided by the following goals:
G4

SD

•

Compensation should fairly pay directors forwork required in a company of 3M’s size andscope;•

A significant portion of the total compensation should be paid in common stock to aligndirectors’ interests with the long-term interests ofstockholders; and•The structure of the compensation should be
simple and transparent.

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

108 | 3M 2017 Sustainability Report

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

Prioritize and execute

Foster collaborationand teamwork

Develop others
and self

Innovate

Act with integrity
and transparency

3M innovation takes a lot of people who are constantly
searching for new and better ways to make innovation happen. People who challenge the status quo
and welcome change. And people who know how
to leverage internal and external networks to create
win-win solutions.
To make sure we are constantly innovating, our leaders
must create an environment that allows and challenges
people to seek out new ideas and process improvements that drive success. Our “Innovate” Leadership
Behavior includes an expectation to support 3M’s
Sustainability goals.
Ratings of achievement of measurable targets impact
employees who are eligible for variable compensation.
Ratings of Leadership Behaviors impact long-term
variable compensation for those employees in senior
positions (e.g., job grade 14 or higher, or equivalent).

Other 2016 compensation highlights
The 3M pay-for-performance philosophy applies toall employees. In 2016, 3M re-designed an employee
performance review process that is directly connected
to an individual’s compensation. The intent of theprocess is to align individual goals and performance withbusiness objectives and outcomes, creating a win-win
situation for the employee and the company. In addition,
the process helps identify and develop leaders to meet
3M’s ongoing talent needs.

Additional information on 3M’s employee development
and compensation can be found in our Employee
Programs section.

world, this project used data from three global surveys
to benchmark pay levels, map job grades, and create aconsistent short-term incentive plan, which helps takemanager discretion out of compensation.

Our Actions

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

3M has a formula for competitive pay including market
adjustments and performance accelerators that are
based on an annual performance review and the Leadership Behaviors discussed above under Our Commitment.
Our performance compensation includes short-term
variable pay and long-term equity and cash incentives
for some employee categories. Multiple employees fallwithin each employee category, and their respective
performance-related compensation may vary.
At 3M, the proportion of total rewards aligned withvariable (incentive) pay increases with job level and isreflective of the job level’s influence on both short andlong-term results. Eligibility for Annual Incentive Plan
(AIP) and Long Term Incentive Plan (LTIP) are basedon job level, considering both the job level’s ability
to influence the incentive period being measured
and market competitiveness for these types ofcompensation.
Additional information on 3M Total Rewards can befound in our Employee Program section.

HR Manager Sessions
Early in 2016, a series of HR manager sessions were heldworldwide to provide managers and supervisors with abaseline understanding of 3M’s approach to competitive
pay and pay-for-performance, to help them communicate to employees where they stand in the pay range
for a given grade compared to peers and employees
at other companies. Globally, 98 percent of managers
completed the session.

Global Market Pricing Project
According to company surveys, 63 percent of 3M
employees believe they are being paid competitively.
To drive consistency and transparency in compensation
practices across all regions, during 2016, the company
completed a global market pricing project. Using
common job descriptions and grades throughout the“Thanks to the Global Market Pricing Project, nomatter where you talk 3M grade levels, a nine isa nine is a nine.

”

Jack Arland, Director, 3M Global Compensationand Mergers & Acquisitions.

Employee Stock Purchase Plan
The 3M General Employee Stock Purchase Plan
continues to be seen as a model among companies
worldwide. The company offers a 15 percent discounton stock purchases to eligible employees worldwide
through convenient payroll deductions. In 2016, participation among employees was 31 percent worldwide.

Looking forward…
New Self-Service HR Platform
3M moved to a new human resources software platformthat will be employed globally beginning in 2017. Thiseasy-to-use, self-service platform enables managers
to make better and faster decisions using real-timebusiness insights. For both managers and employees,
the platform provides more transparency, efficiency andaccuracy regarding compensation practices.

Global Market Pricing, Applied
In 2017, the company will begin applying what itlearned in 2016 from the global market pricing project.
Supervisors will receive further training about the salaryadjustment process, and how individual and corporate
performance affect an employee's pay. The goal is to betransparent regarding salary information and, ultimately,
to make sure 3M employees are paid a wage that iscompetitive with their peers at other enterprise organizations around the world.
#improvinglives | 109

How We Work | Employee Programs

Employee
Programs
Our Commitment
At 3M, we recognize that growth of our company isdirectly related to growth of our people.

market share and accelerate market penetration everywhere” and “Expand relevance to our customers and ourpresence in the marketplace.”2025 Goal: 100% participation in employee
development programs to advance individual andorganizational capabilities.

Our science not only impacts our customers around theworld, it makes a difference in the way we work.
Engaged employees, we believe, are more satisfied with
their work, tend to stay longer, and are more productive
and committed. So we foster and reinforce behaviors
that support engagement on many levels, including
networking and collaboration, diversity and inclusion,and focus on the quality and the impact of the growthjourneys.
3M’s strategy to “Build high performing and diverse
global talent” leverages the strength of our people toimplement other 3M strategies, namely “Gain profitable

110 | 3M 2017 Sustainability Report

Our employees are encouraged and supported to pursue
areas of interest and develop career paths and opportunities aligned with those interests.

Our Actions
3M is a pay-for-performance company: the more
an employee contributes to 3M’s success, the more
success is created for the employee. We also offer awide range of benefits and discounts designed to help
employees live their best.
#improvinglives | 111

How We Work | Employee Programs

3M Total Rewards
3M Total Rewards includes a range ofplans and programs that are intended
32, 10
to attract, retain and motivate thehigh-performing employees we depend on for growthand success. 3M regularly benchmarks its compensation and benefits with those of companies that arecomparable in size and scope to assure that we remain
highly competitive. According to company surveys,
86 percent of 3M employees believe 3M Total Rewards
are competitive.
G4

EC

G4

LA

weeks at 50 percent) and 10 weeks of unpaid leave.
Working part-time is also an option using one of the
3M standard part-time schedules. While there can bedifferent definitions for “parental leave,” in the U.S.
during 2016, a total of 653 employees took either
short‑term disability benefits for maternity (paid leave)
and/or unpaid bonding leave (includes adoption)(female 398‌/‌male 255).

3M Total Rewards break down into three areas: pay,
benefits and life at 3M.

In addition, our short-term disability plan was enhanced
in 2016 to provide a higher level of benefits earlier inan employee’s career. A new hire now will start out
with six weeks of 100 percent paid short-term disability
coverage, compared to 60 percent coverage in theprevious plan.

Pay

Further information on 3M’s wide range of benefits anddiscounts designed to help employees live their best canbe found at: Benefits.

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

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

Benefits

3M Healthy Living Program

Medical, dental and vision plan options, savings
and retirement plans, a 3M employee stock
3
purchase plan and many other resources canenhance a 3M employee’s life, both physically andfinancially.

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

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All regular full-time employees in the U.S. are eligible forthese benefits—regular part-time employees who workat least 20 hours/week are also eligible. Some programsand benefits may differ internationally due to local laws
and regulations.
For U.S. employees, in 2016, we updated our parental
leave policy to enable each parent to play an active rolein nurturing his or her family, regardless of gender orsexual orientation. The policy offers the flexibility tomake it work for both one’s job and family. Mothers
and fathers of newborn or newly adopted children areentitled to up to 20 weeks of Parental Leave—10 weeks
of paid leave (four weeks at 100 percent and six

112 | 3M 2017 Sustainability Report•

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

Fitness center discounts•

Weight management program reimbursement•

Confidential Employee Assistance Program (EAP)•

Tobacco cessation offerings•

Resources to help manage medical care andmake informed health care treatment choices•

Stress management coaching•Child and adult (elder) care consultation andreferralFinancial and legal consultation and referral
services•

Parenting resources, scholarship programs andpersonal growth resources•

Access to on-site health and personal services
in our Headquarter location, including an on-site
pharmacy and medical center•

3M Club that provides discounted tickets and an
avenue to share hobbies and interests with other
employees

Additional resources and opportunities offered:Life at 3M

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

••

Tuition reimbursement•

Adoption assistance•Flexible work arrangements•

Diverse career and development opportunities•

Scholarships for eligible dependents of
employees•

Voluntary long-term care coverage, group autoand home insurance•

Employee store to purchase 3M products online
or at many 3M locations•

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

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

Investing in our People
The growth of our people is essential to thegrowth of our business. Although we reached9-11
our goal of 25 hours per year per full-time
equivalent (FTE) employee of training and development,
it is only one part of the picture. We utilize the 70-20-10
development model which indicates that over the courseof a career, 70 percent of learning is done on the job,
20 percent comes through other employees, and only
G4LA

10 percent of meaningful development is reachedthrough formal training.
Our learning orientation and philosophy is results rather
than activity-based. Measures such as training hours
or costs per employee are not leading human capital
performance indicators for 3M. We believe indicatorsthat align people’s results to the success of the company
are direct performance indicators of development
programs. Leadership and employee engagement,
Employee Retention Rates, New Product Vitality Index(a key metric for the company—sales percentage of
new products introduced in the previous five years),
Brand Recognition, Acquisition Integration milestones,and Lean Six Sigma project value are a few examples
of indicators that contribute to 3M's recognition as anindustry and global leader.
While we can estimate that our training numbers areclose to averages found in other large manufacturing
companies, comprehensive global metrics on training
and training investments are difficult to track, in partdue to 3M's history of decentralized accountability
and control over businesses. Our locally accountableapproach enables quick reaction and fine-tuning to meetthe needs of each market. However, tracking non-corporate/local efforts is difficult because each is adapted to
the needs of that unique market and business/function
and may not use corporate-wide systems.
3M has separate processes for employee performanceand career development reviews.

Employee Career Development
With the roll-out of our new employee resource platformin early 2016, employees are now easily able to linkdevelopment planning to specific competencies, forwhich development resources are readily available.
Aligned with this, we have a goal of 100 percent of
employees engaging in development activities.
Employees create or update their development plan that
includes goals to elevate individual performance andskills to further career development. Employees can use
additional skill-mapping tools in collaboration with theirsupervisors to identify long-term desired goals. Contribution and development assessments for production
staff follow site-specific procedures depending on local
requirements and business-specific needs.

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How We Work | Employee Programs

Since 2012, 3M has embarked on a process to define
and communicate global functional competency models
which clarify expectations of leaders regarding theknowledge, skills, and abilities to be developed overa career within a specific function. Based on sharedexpectations, career paths are aligned with investment
in training and development resources. Each function
with a completed competency model publishes a guidethat provides links to relevant training opportunities, aswell as development suggestions that can be discussed
and agreed on with the employee’s supervisor to growthe competency through on-the-job activities or social
learning through a coach or mentor. Currently, thecompetency-based resources cover approximately 91
percent of the non-production professional employee
population.

Performance Assessment
and Contribution
Throughout the year, employees meet with theirsupervisor to evaluate progress on current goals
11
and adjust them as needed to align to any
changes in priorities.
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Our process includes two components: 1) measurable
targets agreed upon by each employee and his/hersupervisor; and 2) Leadership Behaviors ratings, whichreflect the extent to which the employee engaged incore behaviors that allow 3M to execute our strategies
and meet our objectives.
The performance assessment process helps hold eachof our employees accountable for their contribution andeveryday behaviors. The process aligns personal goals
with organizational goals—we strive to achieve ourgoals in ways that support and strengthen our culture
and achieve sustainable growth. In addition, 3M has long
prioritized taking a well-rounded view of an individual’s
performance, assuring that employees are treated in afair and consistent manner:•

Performance goals, linked to higher-level
organizational goals, are set jointly between theindividual and his or her leader. Tools provided toleaders facilitate conversations between leadersand employees to assure mutual understanding of
expectations and desired behaviors.

114 | 3M 2017 Sustainability Report•

Feedback on progress toward these goals isprovided formally, twice a year, and supervisors
are taught and encouraged to provide routine
feedback to help employees adjust performanceand meet or exceed goals.

3M’s HR department is unique in that we have one
global system to track HR information. At every 3M
location around the globe, we have instant access to thisinformation—using our global reporting tool.

•Management Team Reviews function not only
to provide comprehensive information about anemployee, but also to further the goal that rating
considerations will be consistent for employees
within an organization. This maximizes fairness byequating ratings for similar performance.

New Employee Onboarding

Each year, all 3M nonproduction employees identify
their contributions in meeting their specified goals
through an employee performance process. 3M strives
to have 100 percent of nonproduction employees
complete the entire performance review process. In
2016, all eligible employees were rated through thecalibration meetings, and these employees and theirsupervisors received tasks to complete the year-end
process in the performance system.

Employee Turnover
Our global voluntary turnover rate continues tobe under six percent, a source of great pride for
1, 4
our company. Compared to most companies,
3M employees love working here, and they rarely leave
the company. We calculate voluntary turnover separately from retirements, company initiated turnover, andreductions in force. Voluntary employee turnover isdefined as turnover due to employee initiated reasons(e.g., returning to school, going to another job in adifferent company).
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Total turnover includes voluntary turnover and all otherforms of turnover (e.g., termination as a result of restructuring, termination for poor performance, retirements).
Our total employee turnover rate is an annualized ratethat measures employees who have terminated or retired
from 3M during the calendar year, excluding foreign
service employees and 3M temporary employees.
Temporary employees are 3M employees hired temporarily with intent to be employed short-term. They do notinclude contingent workers.
3M follows all applicable local laws and regulations
regarding notice periods in the event of business operations changes.

3M invests in onboarding and developing new
employees so that they have the tools, resources andnetworks they need to succeed. Our onboarding process
begins at the time a candidate accepts a job offerand continues through the first year of employment.
A consistent, comprehensive onboarding platform
provides pre-start information delivery and engagement
for new employees on the front end, and clear metrics,
reporting and tracking for 3M on the back end. This
investment sets new employees up to be successful andto make meaningful contributions from the start.

Accelerated Leadership Development
3M views leadership development as a competitive
advantage and is accelerating leadership development
across all employee segments by using new technologies and delivery methods to make its programs
globally inclusive.
There are multiple leadership development programs
offered for different stages in an employee’s career
journey. At any stage, in every region, business andleadership courses are made available to employees,
including free online programs that cover topics ranging
from personal effectiveness to finance. There is also ayear-long onboarding program for new supervisors, aswell as several programs for leaders as they progress
into different leadership roles.
3M is building leadership capability throughout thecompany by embedding diversity, collaboration andinclusion strategies directly into our programs.

Global Executive andLeadership Development
3M Leadership Way
In 2015, 3M introduced a new initiative called 3M Leadership Way under 3M’s Global Academy of Innovative
Development. This approach to the way 3M develops
leaders is consistent across all areas, businesses andfunctions. It is customer-focused, results-driven andtakes learning outside of the classroom walls. Common
threads run through the development journey, such ascore content (i.e., 3M Playbook including the 3M Vision).
Also, programs are tailored to provide the formative
experiences necessary to prepare leaders at each level
for their next assignment.
Through 3M Leadership Way, our promise is to unleash
the leader’s potential to add value to our company,
customers, and the world we live in. 3M Leadership
Way Stages:
Catalyst
Catalyst is a 12-month program designed to develop
the company’s top 250 leaders into true leaders who
can impact the course of 3M and also the course of
the world.
Amplify
Amplify is a 9-month program for participants withthe potential to reach the director level. It includes thesame components as Catalyst, scaled to the needs offuture directors.
IgniteIgnite is a 6-month developmental journey for those who
are transitioning to leading teams, and who have thepotential to become senior managers.

Networks and Collaboration
3M has numerous pathways to support organizational
communications, learning and knowledge management.
There are a variety of corporate and job functional
systems to methodically help information andknowledge emerge and flow to the right people at theright time to add value. For example:#improvinglives | 115

How We Work | Employee Programs

Formal Learning Networks: The Learning Solution has
been 3M’s corporate learning management systemand one-stop electronic learning center. It has helped
employees enroll in, deliver, track and report onlearning activities and has served the learning needs of
3M business units, plants and learning organizations
globally. However, a new platform designed to simplify
access to learning activities, is on the horizon. See
Looking forward.
Intranet Knowledge Platforms Databases: 3M’s intranetsite structure is set up so that each employee has a Work
Center as one of the quick-link tabs following login.
Each Work Center is a collection of tools, systems andprocesses that are used routinely in daily work practices
to successfully complete projects and work assignments
in an employee’s functional work area. Company
news for employees is available on a global news site,
3M Newsroom.

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

Best Practice Descriptions/Processes: As a diverse
technical company, 3M shares best practices several
ways. Two of the most widely used internal mechanisms
are the 3M Tech Forum and the 3M Engineering andManufacturing Technology Organization. These twoorganizations provide an extensive network of expertisethrough specialized chapters focused on 3M’s coretechnologies and other emerging markets.
Company Education: In addition to a variety of generalcourses, webinars, etc., 3M offers specialized extended
courses to increase skills such as the 3M Leadership
Development Institute, the 3M Supply Chain Academy,
the 3M Marketing University and the General Managers’
and Managing Directors’ program.
Idea Sharing: Idea management is driven differently
across the Company depending on organizational
needs and what works best for the area of work. Some
platform examples include Yammer, Wiki Enterprise, andvarious 3M internal and external social media channels.
Systems are implemented and available globally to share
best practices and ideas. Additionally, since about 1948,
we’ve encouraged our employees to spend 15% of theirworking time on their own projects and sharing thoseideas with colleagues.

Awards for specific professionals, such as the
Global Marketing Excellence Award and theCircle of Technical Excellence and Innovation
Award
Awards for cross-functional teams, such as theGolden Step Award

3M Global Employees by Region
Full and Part-Time

90,00080,00070,00060,00050,000•Awards focused on employees who improvesafety or pollution prevention

40,000•

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

30,000GlobalAsia PacificCanadaEurope/Middle East/
Africa20,000

Our Footprint
The employee metrics in the charts arereflective of employee headcount as of
9-10
1, 12
December 31, 2016 (total number of
3M full-time and part-time employees) not 3M full-time
equivalent (FTE) employees. Due to acquisition integration schedules onto 3M’s human resources systems,
detailed employee information below may differ from
employee totals in 3M financial reports.
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10,000

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0

SD LA

Looking forward…
In 2017, 3M will launch Develop U, a robust new learning
platform designed to provide employees with simplified
access to employee learning and development tools.
This centralized platform will contain more than 2,000
learning resources in over 15 languages.

Latin America

United States

2012

2013

2014

2015

2016

3M Global Females in Management
Percentage of Total
30
20
10
0
2012

116 | 3M 2017 Sustainability Report

2013

2014

2015

2016

#improvinglives | 117

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

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

50
50

16,00016,000GlobalGlobal40
40Asia PacificAsia Pacific3030CanadaCanada20
20

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

2012
2012

2013
2013

2014
2014

2015
2015

2016
2016

United States
United States

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

8,000
8,000

Asia PacificAsia Pacific

6,000
6,000

CanadaCanada

4,000
4,000

3M Regional and Global Employee Age Distribution
3M
and Global Employee Age Distribution
2016Regional
Percentage
2016 Percentage

Europe/Europe/Middle East/
MiddleAfrica East/
Africa

2,000
2,000

100
100

0
0

90
90

Latin America
Latin America

2012
2012

2013
2013

80
80

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

70
70

60
60

60
60

2015
2015

2016
2016

50
50

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

2014
2014

Asia
Asia
Pacific
Pacific

CanadaCanada118 | 3M 2017 Sustainability Report

EuropeEuropeMiddleEast
MiddleEast
AfricaAfricaLatin
Latin
America
America

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

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

30
30

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

20
20

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

10
10
0
0

United States
United States

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

2012
2012

2013
2013

2014
2014

2015
2015

2016
2016

United States
United States#improvinglives | 119

How We Work | Health and Safety

Healthand Safety
Our Commitment

Employee Health and Safety

Injuries and illnesses have declined since 2006.
And we’re working to push them even lower.

The 3M Global Safety and Health Policy applies to 3M
operations everywhere, including new acquisitions.
Hazards in 3M's workplaces must be well understoodand effectively managed to protect 3M employees,
visitors, locations, and surrounding communities.

As a company that makes a vast array of
products designed to protect workers, 3M is
10
front and center in the global effort to bringnew science and innovation to workplace safety. At thesame time, as an enterprise with 91,600 employees
working around the world, we are always taking steps toadvance the safety of our employees.
G4SD

Since 2006, due to these diligent efforts, worldwide
lost time rates have decreased 49 percent for 3M
employees.

120 | 3M 2017 Sustainability Report

In addition, in the spirit of continuous improvement,much is being done to evaluate opportunities to raise
our safety standards. We visit locations, perform auditsof record-keeping practices and review incident data,
the quality of our investigations and corrective actions
taken.
An employee fatality caused by electrocution occurred
at a U.S. manufacturing site in 2016. The operation
was shut down immediately for thorough root cause
investigation. The exact actions taken by the employee
moments before the electrocution were not witnessed.
All operators of the involved process had been trained,
qualified and equipped to carry out work activities#improvinglives | 121

How We Work | Health and Safety

on live electrical energy. It is unknown why contact
with the electrical energy source occurred. Additional
preventive measures were implemented to further
strengthen the safety of the operation before it
was restarted.

Contractor and Visitor Healthand Safety
All visitors, vendors, and contract workers at 3M
locations are held to the same safety and healthrequirements as 3M employees, beginning with apre-qualification process before granting contracts
for work, and getting information such as injury/illness
rates, Experience Modification Rates (EMR), and training
and activity levels of safety committees.
For a non-3M employee (contractor) conducting workat a 3M location, before actual work begins, formal
pre-construction safety reviews are conducted toaddress potential hazards and controls related to thework. Monitoring of safety performance is frequently
conducted throughout the contract term.
In addition, each location has a Contract Coordinator
who is the main contact for contractor safety. They
have the ability to participate in pre-bid meetings andpre-qualifications for contractors. The Contract Coordinator is on-site and therefore available for daily meetingsand safety reviews to assure proper behavior, training,
and weekly inspections.
Any contractor incidents are reported in the 3M
Worldwide Incident Management System (WIMS),
including injuries and contractor worker hours.

Process Hazard Management
3M is committed to rigorously monitoring the risks associated with hazard management, such as process-related
fires, explosions and sudden release of toxic materials.
We use a Hazardous Process Evaluation Tool (HazPET)
to categorize hazardous processes and assess the effectiveness of existing safeguards. Layers of Protection
Analysis (LOPA) is also used to evaluate critical safety
devices and systems, providing more attention to independent protection layers.

122 | 3M 2017 Sustainability Report

Our Actions
In 1996, a Global Safety and Health Plan (GSHP)
tool was initiated for all global 3M locations,6and it has been continually used and improved
since then. This tool utilizes a well-developed self-assessment process that is categorized into multiple
elements addressing various areas and standards related
to safety and health. 3M utilizes a variety of tools tomanage 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 andergonomics. Each of these disciplines uses a risk
management approach to categorize hazard levels anddefine appropriate levels of control.

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

G4LA

RAP and WIMS assessments
bring historic success
It has been more than four years since the roll-out of
the RAP (Risk Assessment & Prioritization) process wasofficially launched in WIMS. Today, over 90 percent of
our locations have people with formal RAP training.
Since that launch, risk reduction activity has yielded
gratifying results. At the end of 2016, over 59,000 risk
assessments had been completed which resulted in
the identification and reduction of more than 17,000
higher initial risk activities. This, in turn, has correlated
to a steady decrease in severe incidents over the past
three years.
The SIF (Significant Injury/Illness or Fatal) rate at 3M,
which remained at 0.19 from 2012 through 2014, fell
steadily in 2015 and continued its decline in 2016 witha net reduction of around 42 percent. This represents
about 50 fewer significant injury/illness incidents per
year. The following chart shows the worldwide SIF rate
trend for all 3M employees, contingent workers andcontractor workers combined.

Significant injury assessment

0.20
0.18
0.16
0.14
0.12
0.10
0.08
0.06
0.04
0.02
0
2012

2013

2014

2015

2016

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

0.70Worldwide

0.60

Asia Pacific

0.50
Canada0.40

Europe/Middle East/
Africa0.30
0.20

Latin America

0.10
United States

0.00
2012

2013

2014

2015

2016

In 2013, 3M instituted a new approach to dealing withhazards that have the potential to result in fatalities
or serious injuries. In 2014, we implemented metrics
to measure our progress toward a five-year goal of#improvinglives | 123

How We Work | Health and Safety

100 percent conformance to the following six standards
for managing risk in certain high-hazard activities:
1. Safety and Health Hazard Recognition and Risk
Assessment
2. Incident and Potential Hazard Reporting, Record
Keeping, Investigation and Follow-up
3. Powered Industrial Vehicles
4. Machine Guarding
5. Work at Height
6. Process Hazard Analysis

Comprehensive Chemical
and Noise Exposure Risk
Assessment and Management
To accurately assess exposure management programs
and activities, 3M uses the comprehensive approach
outlined by the American Industrial Hygiene Association (AIHA). In the past decade, over 95 percent
of all chemical agents and noise baseline exposurerisk assessments have been completed for all jobs,
including annual air and noise sampling plans, exposure
assessment validation plans, hearing conservation

Global Health and Safety Plan High Hazard Standards By Region
2016 Percentage

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

0.60

0.50

0.40

0.30

100
0.20

95
90

0.10

85
80

0.00
2012

75

0
1.6
Safety and
Health Hazard
Recognition
and Risk
Assessment

3.2
Incident andPotential
HazardReporting,
RecordKeeping,
Investigation
and Follow-up

Worldwide

6.4
PoweredIndustrial
VehiclesAsia Pacific
Latin America

124 | 3M 2017 Sustainability Report

6.8
MachineGuarding

6.11
Work atHeight2013

United States

Europe/Middle East/Africa

2015

2016

Contact with
Object/Equipment

Exposure,
ChemicalPhysical Agent
Exposure

Ergonomics

Miscellaneous

Slip, Trip, Fall

Exposure,
Biological Agent

Noise Exposure

Transportation
Accident

8.3
Process Hazard
Analysisprograms and respirator and personal protective
equipment programs. The results of these assessments
help us determine whether any changes in exposure
management programs are warranted.

Canada2014

Ergonomics Risk Management

regional leaders for ergonomics at various locations
around the globe. In 2016, we trained ergonomic
experts in each region globally to drive ergonomic risk
reduction. Ergonomic training is also available 24/7 toany employee in the world who wants to learn more.
These efforts have led to reduction in recordable cases;
see Recordable Incident Rate chart above.

Since ergonomic and noise-related injuries continue tobe a major topic for all kinds of employers, 3M included,
we have been placing special emphasis on developing#improvinglives | 125

How We Work | Health and Safety

Safety and HealthCommittees

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

3M seeks employee participation at all levels toassure involvement and ownership of safety and5health programs and systems. Safety and
Health Committees, typically comprised of bothmanagement and employees, are key to us achieving
effective, proactive solutions to safety and health issues,
as well as substantive results. Emphasis is placed on acooperative effort between management and employees
in achieving these goals.
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2.50

2.00

1.50

Through these collaborative efforts, all employees
have the opportunity to be involved in risk assessment
activities to then develop action plans and assign
responsibilities for completing safety and health-related
goals and objectives.

1.00

0.50

0.00
2012

2013
Worldwide

2014
Asia Pacific

Latin America

Canada2015

2016

3M Environmental, Health and Safety (EHS) will behosting the 3M Global Safety Conference in May, 2017in Minneapolis, Minnesota. This internal conference isfocused on managing EHS risks, increasing knowledgeof 3M safety systems, strengthening regulatory compliance, and increasing productivity.
In addition to the global safety conference, more training
will be available in 2017 to assist locations in their risk
reduction efforts and to provide them with benchmarkson the quality of their risk assessments. Assistance isalso available from Corporate Safety for a case by casereview of risk assessments for any particular challenging
hazard in need of improved controls.

In 2016, 100 percent of 3M manufacturing locations
worldwide had active employee safety and healthcommittees.   

Europe/Middle East/Africa

United States

Static Discharge
Improvement Plan

Additional Steps to Protect
People at Our Facilities

With continuing growth in electronic devices and technology, 3M developed a static discharge improvement
plan in 2016. This plan includes the appointment of acompetent, trained coordinator at each 3M location
where there is potential for static discharge incidents;
creation of supporting procedures, instructions
and knowledge documents; training for operators,
management, EHS personnel, and engineers who areresponsible for design and mitigation efforts. In addition,
the Electrical and Management of Change (MOC)
sections of the Global Safety and Health Plan Standard
have been updated to include new audit questions andexplanations. Metrics will be collected to monitor the
progress of the program.

3M follows the U.S. Occupational Safety and Health(OSHA) recordkeeping rules and formulas to recordand measure injury and illness rates worldwide. All 3M
employees and contingent employees, regardless offacility type but within 3M’s operational control, arecovered by our injury and illness recordkeeping rules.
In addition, contractors are asked to submit notification
to 3M of worker hours and any injuries occurring while
performing work in accordance with a 3M contract.

126 | 3M 2017 Sustainability Report

Looking forward…

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

#improvinglives | 127

How We Work | Environmental Management

Environmental
Management
Our Commitment

Standard and our Global Climate Change Position
Statement.

In 1975, 3M formalized its commitment to­environmental stewardship when the14
company’s Board of Directors adopted the3M Environmental Policy. This policy established theframework for our approach to responsible environmental management and conservation of resources,
emphasizing prevention of pollution at the source.

SD

We are committed
to complying with allenvironmental requirements
and regulations.

Since then, we have created supporting policies using aneeds-driven process. When we identify potential risks
to the environment, health, and safety of our employees,
products, and communities, we take steps to modify
processes and standards that address these risks.
Our strategy and resulting actions are demonstrated
in the following policies, positions, and standards:­Environmental Policy, Energy Policy, Greenhouse Gas
Management Standard, Product Carbon Footprint
Standard, Disposal of Chemical Waste Standard, Waste
Management Program Standard, Water Management

3M global operations are subject to environmental
laws and regulations, including those pertaining to air
emissions, wastewater and stormwater discharges,
hazardous substances or materials of concern, and thehandling and disposal of solid and hazardous wastes.
These laws and regulations are enforceable by national,
state and local authorities around the world.

G4

128 | 3M 2017 Sustainability Report

3M's Acquisition, Divestures, and Mergers Standard
applies worldwide to all 3M acquisitions, mergers,
divestitures, joint ventures and real estate transactions.

#improvinglives | 129

How We Work | Environmental Management

All pending transactions are evaluated to identify
EHS&S risks and regulatory compliance matters by the
Corporate Environmental Programs organization.
3M's strategies for sustainable development encompass
the pursuit of customer satisfaction and commercial
success within a framework of environmental, socialand economic values. The company continues to makesignificant investments to reduce the environmental
footprint of our operations; and our products withsustainable attributes help customers reduce theirenvironmental footprint and help to meet their Sustainability goals. Always, 3M believes environmental policy
and regulations should be guided by science-based
decision making.

Our Actions
Setting and implementing global environmental
policies, management systems and key perfor27
mance metrics enables 3M to continually
integrate and drive environmental stewardship into eachof the company’s five business groups globally, assuringconsistency and innovative environmental thinking. As
reflected by our environmental performance indicatorsand 2025 Sustainability Goals, environmental stewardship is a core corporate commitment backed by decadesof proven performance.
G4group and corporate levels. These scorecards arereviewed by executive management for performance on
selected indicators, enabling 3M to monitor and identify
successes, risks and opportunities for improvements andreductions worldwide.

Environmental IncidentManagement
Since 2010, all 3M locations globally are
required to internally report environmental
24, 29, 34
exceedances, spills, agency notices and fines
through one dedicated system—3M's Worldwide
Incident Management System (WIMS). This includes:
G4

EN

•

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

Significant Spills: spills that are above a designated risk-level based on an internal company set
volume and threshold.

EN

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

SO

Information and performance data on a majority of these
program elements are tracked and reported throughcorporate electronic reporting systems. Quarterly
scorecards report data at the facility, division, business

130 | 3M 2017 Sustainability Report••

Agency Notices: notices received by 3M foralleged deviations from an environmental regulatory or permitting requirement
Fines: compensation paid by 3M to address anadministrative fine or penalty imposed by anenvironmental regulatory agency.

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

Environmental Management
Implementation
Implementation of our EMS continues to increase
throughout the world and has translated into reduced
costs through operating efficiency, improved environmental compliance, reduced monitoring costs,
reduced energy and waste disposal costs, and increased
employee activity. EMS is also expanding our Sustainability image around the globe, which has strong
financial benefits.
Our approach calls for each site to establish, implement,
and maintain documented environmental objectives
and targets. When establishing an EMS plan, each sitemust address financial, technological, operational, andbusiness considerations. The objectives and targets
should be measurable and consistent with our environmental policy, including our commitments to prevent
pollution and be compliant with applicable regulations
and other requirements to which we subscribe.
3M’s multifaceted strategy for implementing environmental management systems and global auditing ofenvironmental compliance for our operations is key tounderstanding any potential gaps and gaining resolution
quickly. All manufacturing locations are required tocomplete a Global Environmental Management Self-Assessment (GEMSA) at least annually, which consists of adetailed evaluation of the location’s systems alignment
for assuring environmental compliance and management
system performance. Among the topics covered in the
self-assessment:•

Regulatory Applicability•

Regulatory Change Management•

Air Regulatory Compliance and Conformance•

Air Emission Control Operations•

On-site Waste Management•

Off-site Waste Recycle and Disposal•

Wastewater•

Rainwater and Stormwater•

Water Supply and Use•

Groundwater and Remediation•

Storage Tanks•

Energy Management•

Environmental Policy and Standards•

Incident Prevention Reporting and Investigation•

Incident Reporting and Investigation•

Planning and Goals•

Training and Communications

The elements reflect procedures, systems and processes
that are comprehensive and mandatory to maintaincompliance with legal or other requirements. Additional
ISO 14001 elements and associated questions areprovided to enable sites to conduct further reviewof their EMS. Data from the assessments is validated
through audits, site visits by subject matter experts andother data systems.

Environmental Investments
In 2016, 3M expended about $28 million for
capital projects related to protecting the envi31
ronment. This amount excludes expenditures
for remediation actions relating to existing matterscaused by past operations that do not contribute tocurrent or future revenues, which are expensed. Capital
expenditures for environmental purposes have included
pollution control devices—such as wastewater
treatment plant improvements, scrubbers, containment
structures, solvent recovery units and thermaloxidizers—at new and existing facilities constructed or
upgraded in the normal course of business. Consistent
with the Company’s emphasis on environmental responsibility, capital expenditures (other than for remediation
projects) for known projects are presently expected to
be about $70 million over the next two years for new or
expanded programs to build facilities or modify manufacturing processes to minimize waste and reduce
emissions.
G4

EN

Environmental Site Assessment
Outside 3M’s EMS and GEMSA, 3M has
completed environmental site assessments at
11-13
most locations with the goal of identifying
potential historical liabilities. As a result of these assessments, biodiverse areas may be identified. Where
applicable, a public database search is completed, which
includes a wetland database. Site visits also identify
areas such as rivers, creeks and potential wetlands thatare on or near the location.
G4

EN

Applying ISO 14001
ISO 14001 provides a global framework for handlingenvironmental issues within an organization. 3M, in
2016, worked with an outside consultant to help individual locations learn how to transition and recertify to
the latest standard, established in late 2015. As of theend of the year, one 3M location successfully completed
certification to the new version of the standard. Additional locations will go through the re-certification audit
over the next two years.
Locations that are certified account for approximately
96.7 percent of 3M’s total product output. The
remaining locations are from new 3M acquisitions and/or 3M office/logistic centers. ISO 14001 certification#improvinglives | 131

How We Work | Environmental Management

scope is specific for each location. Our approach is tochampion ownership at individual locations to produce
the best possible EMS results.

Third-Party Assuranceof Sustainability Metric
ReportingBureau Veritas (BV) provided independent third-party
verification of 3M’s 2016 environmental data (volatileorganic compound emissions, water, waste, environmental compliance metrics, energy consumption
and greenhouse gas emissions) included in this 2017
­Sustainability Report.

Self-Assessments and Auditing
3M verifies regulatory compliance and alignment withprioritized sections of the self-assessment, conducting
environmental-related audits on a risk-prioritized basis.
In 2016, these audits covered sites that manufactured
11.6 percent of total product output. Key objectivesof audits:

Managing Global Risk and Compliance
Maintaincompliance

Share bestpractices

Developenvironmental
professionals
Identify
common areas
for improvement

Manage risk

Build common
understandingof requirements

What comprises the auditing process:•••

Manufacturing, distribution and laboratory operations are audited for environmental complianceon a frequency based on relative risk
At least annually, all global operations areassessed against a variety of criteria to establish
a prioritized list of locations for compliance
auditing
3M uses a variety of tools and resources forcompliance auditing, including:132 | 3M 2017 Sustainability Report– Internally developed compliance protocols,
created by subject matter experts in regulatory
programs and 3M processes– 3M’s GEMSA as an evaluation tool
– Externally purchased compliance protocols,
especially for international operations, to assure
local compliance obligations are understoodand met– Internal environmental compliance experts
from around the company– External environmental consultants as needed
to provide additional expertise and third-party
verification of our auditing protocols– Complete and robust documentation of audit
findings, assignment of responsibility anddue dates for closure of findings, and detailed
review of findings, to assure corrective actions
are appropriate and sustainable
3M’s environmental auditing program is audited periodically by 3M’s Corporate Auditing department.

On May 17-19, 2016, about 200 global 3M employees
gathered in Minneapolis, Minnesota for the 3M Environmental Conference. This conference, the third since2010 and part of a long history of internal EHS conferences, provided a forum for sharing best practices andlearning about environmental compliance and optimized
performance. More than 80 speakers presented
new ways to design waste out of our manufacturing
processes and incorporate the full cost of waste into
our planning processes, among many other topics.
Attendees returned home with specific actions they
could take to promote compliance, do their jobs more
efficiently, and reduce manufacturing costs and potential
releases to the environment.

Using the power of mapping
A concept developed in the 1960s primarily for agricultural use, Global Information Systems (GIS) wereoriginally used to collect and analyze the characteristics
and potential for land used for growing crops. Today, it
is being widely used to do the same kind of analysis, but
through an environmental lens. 3M’s short-term goal is tohave location data that’s geospatial-referenced on a map
for specific global sites. Ultimately, our long-term goal isto have the same information for every site worldwide.

2025 Goals Scorecard
3M GoalGoal Progress

Improve Global Energy Efficiency

30%

Refining auditing management
In an effort to create more consistency in global auditingof locations, 3M has refined its Compliance and Auditing
Management and Metric Systems (CAMMS). CAMMS
allows us to conduct internal compliance audits in thecontext of applicable regulatory requirements andcompany policies and standards, and then using a risk
assessment tool prioritize needs based on a numberof factors, including the environmental footprint of
the location and the number of years since its mostrecent audit.

Looking forward…

937

956

2015

2016

Reduce Global Manufacturing Waste

10%

2016 3M Environmental Conference
Achieveglobal zero landfill status

at more than 30% of manufacturing sites.

Reduce Global Water Use

10%

2025

MMBTU per MM USD Net Sales

Increase Global Renewable Energy

25%

656

25%
0.50% 11%
2015

2016

2025

Percentage of Total Electricity Purchase

5.16

5.33

4.64

2015

2016

2025

Metric Tons per MM USD Net Sales

28%

27%

2015

2016

30%

2025

Percentage of Total Manufacturing Sites

0.001410.001520.00127

2015

2016

2025

Million Cubic Meters per MM USD Net Sales#improvinglives | 133

How We Work | Environmental Management | Raw Materials

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

Our Commitment
The world’s population is growing larger, living
longer, and consuming more—which puts a2
strain on finite natural resources. To address
this challenge, 3M continuously looks for ways torecover, reuse and recycle by-products and other wastematerial. We are moving from recyclable to renewablematerials in our product and package design. (To learn
more about this, turn to our Innovation Management
section.) Improving our raw material usage throughproduct design and operational considerations provides
cost benefits throughout our supply chain, in material
use, energy, and transportation efficiency
G4

SO

The 3M Waste Management Standard applies to all 3M
locations and provides a framework for managing all
waste types from the time of generation until reused,recycled, treated or disposed. The Standard sets abaseline for several core waste program elements andencourages waste minimization and recycling whenever134 | 3M 2017 Sustainability Reportpossible. Per the Standard, each 3M location has a
Waste Management Coordinator who is responsible forcoordinating appropriate waste training for all personnel.
Compliance with all 3M and other regulated waste
requirements is evaluated through the internal environmental auditing program.
Our Disposal of Chemical Waste Standard calls forappropriate management and disposal of chemical
waste, to manage risks and protect the environment.
This includes efforts to reduce the amount and hazards
of waste materials generated, to recycle or reuse thosematerials whenever practical, and to control waste
disposal through final disposition.

We’ll continue to drive ‘zero waste’ thinking with our
product designs and process technologies, as well as
waste reduction work at our manufacturing operations.
3M Corporate Environmental Operations identifies
opportunities for efficiency improvement and measuresprogress toward raw material usage and waste reduction
goals for sites within our global manufacturing footprint.
The results and raw data are used to identify, quantify
and prioritize projects to improve, utilizing Lean Six
Sigma Continuous Improvement methodology.
Results are reviewed quarterly and annually withinregions, businesses and divisions against goals andtracking metrics. Specialized teams work on a variety
of projects and programs, ranging from basic officerecycling to more complex projects such as developing
and capturing intrinsic waste materials generated off amanufacturing line. Through an evaluation process, allaspects of waste reduction benefits or risk are reviewed.

Waste management and minimization is an importantcomponent of 3M’s environmental stewardship. The 3M
Environmental Operations and Resource Recovery organizations provide corporate oversight for global waste
management activities.

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

In addition to our waste reduction goal, we plan toincrease repurposing, reusing and recycling of potential
waste materials to divert from landfill disposal. By theend of 2016, 26.6 percent of 3M sites had attained “zerolandfill” status.
A site receives "zero landfill" status when it has gonea full calendar year without sending any waste to alandfill. It will continue to be a zero landfill site as longas no waste is sent to a landfill. Waste, as defined here,
does not include ash generated from 3M material sent
to a waste-to-energy site or incineration. If material isinadvertently diverted to a landfill, 3M works with its
vendors to contractually prevent this from happening in
the future.

#improvinglives | 135

How We Work | Environmental Management | Raw Materials
G4

Our Actions
2016 was another year of significant progress for 3M inreducing waste. On many fronts, much of this progress
can be attributed to a consistent, company-wide focus
on reuse, reduction and internal recycling, as wellas collaboration with our own technical community,channel partners and civic and conservation leaders incommunities where 3M operates.
Waste from manufacturing sites accounts for the
majority of waste in 3M’s environmental footprint. 3M’s
waste metrics include 3M manufacturing operations
with total output greater than 4.54 metric tons per year
(10,000 pounds) which represents 98 percent of Sales
Value of Production (SVOP) of our manufacturing sites.
3M practices waste minimization whenever practicalto reduce the amount and hazards of waste materials
generated. Between 2005 and 2016 there has been a
7.97 percent reduction in absolute total hazardous waste
or a 25.2 percent reduction as compared to total waste.
3M is also dedicated to operating in accordance withall regulations and managing waste materials safely andresponsibly. All 3M locations are required to manage all
returned, recycled, and waste materials from the time ofgeneration until reused, recycled, treated, or disposed.
We work closely with 3M Lean Six Sigma to increase
waste reduction across all locations. Our waste
indexed to net sales has decreased nearly 22.0 percent
since 2005.

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

EN

The diversity of manufacturing technologies, processes
and products at 3M provides opportunities for creative
waste usage solutions for the Company. Accurate waste
identification is a continuous education process andprovides a foundational opportunity to further advance

136 | 3M 2017 Sustainability ReportENwaste minimization and recycling at all our locations.
One business’s by-product may connect as anotherbusiness’s raw material. As we continue to grow internationally, integrating consistent, yet resourceful, waste
management practices in accordance to 3M standards
remains a key objective.
As such, we continuously look for ways to recover,reuse and recycle by-products and other waste material
when feasible. And when it’s not usable, we responsibly
dispose of waste materials. The concept of maximizing
raw material usage is important both internally andexternally to address the global challenge of resource
efficiency and scarcity.
In addition to optimizing efficiencies in operational waste
and recycling, 3M continues our long-standing commitments to efficient paper and packaging use. For ninestraight years, we have reduced designed packaging
weight in the United States, for a cumulative reductionof more than 13,000 metric tons. More than half of that
reduction was in paper-based packaging. Over the last
two years, global savings have been reviewed at thecorporate level. In 2016, our global designed packaging
reduction was just under 4,000 metric tons.

23

Global Waste Diversion by Type
Metric Tons
350,000
300,000
250,000
200,000
150,000
100,000
50,0000
2012
Waste-to-Energy

2013

2014

Offsite Recycle

2015
Offsite Reuse*

2016
Onsite Recycle + Reuse**Does not include Onsite Recycle & Reuse and Offsite Reuse from 3M's Industrial Mineral Product (IMP) Division

Pollution Prevention Pays
The 3M Pollution Prevention Pays (3P) program is basedon the belief that a prevention approach to pollution ismore environmentally effective, more socially acceptable and more economical than treatment. Begun morethan 40 years ago, the program has prevented morethan 2.25 million short tons of pollutants and saved
over $2 billion based on aggregated data from the firstyear of each 3P project. Success has been achieved
thanks to voluntary participation from employees acrossthe company, including research and development,
manufacturing, logistics, transportation, and packaging.
Innovative projects are submitted and then reviewed andselected based on defined criteria by a 3P committee
representing R&D; Engineering; Environmental, Health,
Safety and Sustainability; Manufacturing; and Supply
Chain organizations. Selected project teams receive
recognition for their achievement.

Global Waste by Disposal Type
Metric Tons

200,000
150,000
100,000
50,000
0
2012

2013

2014

Treatment/Incineration

2015

2016

Landfilled*Waste no longer includes waste-to-energy#improvinglives | 137

How We Work | Environmental Management | Raw Materials

Global Waste
Metric Tons per MM USD Net Sales

3P Global Pollution Prevention Achievements: 1975-2016
First Year Total Pollution Prevention Cumulative Totals, Short Tons

7.0
2016

6.0

2015
5.0

2014

4.0

2013

3.0

2012

2.0

2010

1.0

2005

0.0
2005

2010

2012

2013

2014

*Waste no longer includes waste-to-energy

2015

2016

2000
1995
1990

United States Package Design Waste
Yearly Waste Prevented, Metric Tons

1985
1980

3,000

1975

2,500
0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2,000
Total Air Pollution
Prevented

1,500

Total Waste Pollution
Prevented

Total Water Pollution
Prevented �

1,000
500
0
2012

2013

138 | 3M 2017 Sustainability Report

2014

2015

2016

As part of the program, 3M Industrial Mineral Products
was named 2016 Division of the Year for successfully
encouraging employees to reduce and eliminate
pollution at its four facilities. Through their efforts,
these employees prevented over 100,000 short tons ofpollution last year. To achieve this result, 3M employees
at each of the locations targeted a total of 14 projects
where they could eliminate waste through recycling andreuse. Their efforts contributed to saving a total of $1.26
million for the company during 2016.

Zero Landfill
Zero landfill is a goal that resonates with our local
communities as well as our suppliers and customers.
However, it has various definitions for different people
and sites. We’ve spent a lot of time during our goal
development process benchmarking peer companies
that span relevant business sectors and industries. And
we’ve chosen a holistic definition—Zero Landfill meansno waste is sent directly to a landfill from a 3M manufacturing site in a calendar year. While we want to have all#improvinglives | 139

How We Work | Environmental Management | Raw Materials

sites divert waste from landfills and increase beneficial
reuse, this goal may not be financially or technicallyfeasible for all locations in 3M.
Our site waste data is reported in the corporate Environmental Targets Database quarterly. At the corporate
level, we report the percent of sites that have accomplished Zero Landfill. This data is third-party validated
at the site and corporate level. We also require the sites
meeting this goal to complete an internal assessment toassure accurate reporting.
We are evaluating applicability and business value of
pursuing external certifications for zero landfill.

Looking forward…
Aligning with 3M’s Lean Six Sigma as a basis for driving
continuous improvement, the True Cost of Waste Black
Belt project was designed to assist in achieving 3M’s
2025 Sustainability goal of reducing manufacturing
waste by 10 percent as indexed to the company’s sales
at a facility level. By using the Lean Six Sigma tools, theproject team quickly determined that a primary issue
for manufacturing plants is lack of visibility regarding
the quantity and cost of waste streams. The projectused Business Transformation and our global Enterprise
Resource Planning System to gain visibility into eachmanufacturing plant’s waste, thereby allowing plants tobetter use Lean Six Sigma tools for project hopperingand prioritizing, and ultimately reducing waste.

Results from kaizen waste
reduction events
Kaizen is the Japanese word for “continuous improvement.” In 2016, at two 3M U.S. locations, teams held
kaizen events to prioritize efforts that will reduce
manufacturing waste. The events included plant walkthroughs, waste-by-cause analyses and identification ofopportunities for improvement. We should begin to seereal results from these promising events in 2017.
Part of the solution requires utilizing Lean Six Sigma
within a site to segregate and manage material flow for
waste streams and analyze the availability of internal andexternal waste handling alternatives.
As sites identify opportunities to divert waste streams, itis critical to do this within our Corporate Waste Management Standard requirements. We want to protect 3M’s
reputation while managing waste, and set up contracts­ aste-to-energy
with our haulers and recyclers and/or w
companies to make sure our material is handledappropriately.

Packaging
In 2017, 3M plans to deploy a new software modeling
tool that will help engineers reduce waste in productpackaging, evaluating design options from a life cycle
management point of view. A global pilot of the newprocess and tool was conducted in 2016 with full roll-out
occurring in 2017.

#improvinglives means changing
how industry works, from purification
to aerospace.
We provide thousands of innovative products, from tapes and abrasives, toadhesives and filtration systems; helping solve some of the world’s biggest
challenges across diverse markets.

Industrial
140 | 3M 2017 Sustainability Report#improvinglives | 141

How We Work | Environmental Management | Water

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

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

Water Quality and Availability
Water is the most valuable natural resource forlife and thriving ecosystems; therefore, our22planet’s consumption must be nurtured andthoughtfully managed. We recognize that reducing
water consumption in our operations and improving
water quality are important elements of optimizing ourenvironmental stewardship. Quantitatively, the availability of water must meet the needs of current andG4EN

142 | 3M 2017 Sustainability Reportfuture consumer demands. In addition, water quality
must comply with local regulations and be reliable in thelong term.
Water is an important component for the manufacturing
and support systems of several of our products. Becauseof this, 3M continues to actively understand, manage
and work toward reducing our corporate water footprint
while providing innovative solutions to our customers.
We respect our ecological and ethical responsibility andhave a vested interest in preserving and improving water
availability and quality relative to our operations and thecommunities we serve.
3M’s Water Management Standard provides a company-wide framework, including both general and specificelements for water management. The standard requires
3M operations to manage their water resources throughunderstanding the balance of water use, compliancewith regulatory requirements, systematic and prioritized
conservation practices, and reporting usage. Water
resources include water intake, effluent water discharge
and rainwater.

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

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

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

Risk-Mitigation Planning
At 3M, we continually evaluate ourapproach to opportunity and risk. We
9, 11-12, 14
2
believe the whole concept of risk
appetite and tolerance is an essential component of
G4

G4

EN SO

strategic planning. This includes a broad risk oversightby 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 uses the definitions and tools established by theWorld 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 ona country and watershed basis. In 2016, 25 sites withannual water use equal to or greater than 1,000 cubic
meters were located in water-stressed areas as definedby the extremely high baseline water stress value(WBCSD-Global Water Tool).
Each 3M site located in a water-stressed area is required
to understand its water use, associated business risks
and impacts and to work with local water resources
to understand potential impacts on the surroundingarea. Identified sites are also requested to do water
conservation planning, outlining current and futurewater conservation efforts. Annual stress-level screening
evaluations are conducted for global operations using
available updates from the WBCSD Global Water Tool,an analysis of site operations and water usage andlocal conditions.

#improvinglives | 143

How We Work | Environmental Management | Water

Our Actions

associated operations. We continue to improve our data
accuracy through monitoring and measurement.

2016 was another year of significant progress,
on many fronts, for 3M’s water footprint. Much
9of this progress can be attributed to a consistent, company-wide focus on reuse, reduction andinternal recycling, as well as collaboration with our own
technical community, channel partners and civic andconservation leaders in communities where 3M
operates.
G4EN

3M’s total water usage includes sanitary, process,heating, cooling, remediation, and other miscellaneous
sources. Water usage data is tracked and reported
annually on a global basis for manufacturing sites that
produce greater than 4.54 metric tons (10,000 pounds)of product per year. The reported data accounts for
98 percent of Sales Value of Production (SVOP) which
provides solid coverage of water use consideredmaterial to 3M’s operational environmental footprint.
Total water consumption has decreased 34.2 percent
between 2005 and 2016 indexed to corporate-wide net
sales. Results also indicate that a majority of 3M water
use in operations is for processing products in manufacturing and heating or cooling of those processes andWater conservation efforts have been achieved throughrecycling, reuse, product redesigns and improvements
to our buildings and manufacturing processes. A
majority of our water-intense manufacturing operations
are located in the U.S. and Europe, in areas that are notwater-stressed or water-scarce. However, they also
contribute significantly to our conservation efforts. As
the Company continues to grow globally, thoughtfulconsideration is placed on the type of operations andavailability of water sources.

Onboarding new 3M sites
about water conservation.
3M utilizes the WBCSD Global Water Tool to determine
if a new 3M site is in an area that has an extremely highbaseline water stress value. If a site is in such an area,
the company provides special training, and collects
water usage data to determine whether or not to include
this site as part of our water related goal for community-wide engagement approaches towards water
education advancement. If included, the site is madeaware of additional requirements it must meet.

Global Water Usage
Million Cubic Meters
50
45
40
35
30
25
20
15
10
5
0

G4

2005

EN

2010

2012

2013

2014

2015

2016

Looking forward…

8, 10

Global Water Withdrawal
Water Withdrawal
2016Global
Percentage

A 10-year plan to address global
water challenges.

2016 Percentage

Surface25%

Surface25%

Groundwater

44%

Groundwater

Public Municipal

21%

44%

Other
Sources

10%

The focus of our 10-year strategic plan will not only be
on water use reduction. The plan also focuses on collaboration and social innovation in search of solutions for
emerging global water challenges. In addition, we willconsider the counterbalance between water reduction,water quality and water-related risks. A critical elementof this plan was the establishment in 2016 of a Corporate
Water Conservation Steering Team with executive
management sponsors. This team is reviewing policies,
programs and procedures while expanding our internal
systems globally, to create, identify and share best
management practices related to water conservation.

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

0.002

0.001

0.000
2005

Public Municipal

2010

2012

2013

2014

2015

2016

21%

144 | 3M 2017 Sustainability Report

Other
Sources#improvinglives | 145

How We Work | Environmental Management | Climate and Energy

Climate and Energy
Our Commitment

3. Extensive public policy engagement on bothclimate change and energy conservation
4. A decades-long track record of improving energy
efficiency at our locations

We are transforming the way we use energy.
Because energy impacts climate, and climate
impacts everything.

Through the years, 3M has been a proactive leader inaddressing both the challenges and the opportunities
presented by climate change and energy conservation.
Our proactive leadership is best defined by five areasof action:
1. Executive-level commitment to these important
topics and our related principles, commitments
and risk-mitigation planning efforts
2. Industry-leading efforts to reduce our own
greenhouse gas (GHG) emissions

146 | 3M 2017 Sustainability Report

5. Serving our customers through a wide
range of innovative products that help them
improve energy efficiency and reduce theircarbon footprint

Executive-Level Commitment
Climate change and energy efficiency are
high-priority issues throughout 3M, up to the2
Corporate Operating Committee and CEO. The
Corporate Environmental, Health, Safety and Sustainability (EHS&S) Committee has been empowered bycompany leadership to take proactive steps and be
responsible for all final decisions on climate change andenergy strategy, including setting company reduction
goals and policies.
G4

SO

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

•

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

Public Policy Engagement•

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

3M 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 science-based decision making•

Utilize a consistent, market-based approach•

Encourage investment and protect intellectual
property to facilitate technology breakthroughs•

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

Provide full credit for early reductions in GHG
emissions

3M is actively engaged in public policy development
to address climate change. One example: the National
Climate Coalition (NCC). 3M is a founding member of
NCC, an organization committed to dialogue and policy
development with decision-makers in the United States
EPA and many state agencies.

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

Corporate and local plans take into account natural
disaster, infectious disease, employee safety, protectionof assets, customer service and other business continuity requirements.
Supply chain risks are mitigated using a variety ofmanagement practices, including:•Multi-sourcing raw materials•

Pre-qualification of potential outsource
manufacturers•

Maintaining appropriate stocks of raw materials•

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

Science-Based Targets

Energy management at 3M goes beyond energy‑­
efficiency efforts in factories and buildings. It is a teameffort guided by the global Corporate Energy Policy
and coordinated by the Corporate Energy Management team, with oversight by 3M’s Corporate Energy
Manager and Engineering Vice President, and active
support from the CEO. Team members come from Environmental Operations, Location Operations, Finance,
Sourcing, Engineering, Energy Management, Corporate
Marketing and Public Affairs. Each department provides
cross-functional contributions, assuring that:•

Energy-efficient technologies are being used•

Opportunities are being identified in the design
process•

Renewable energy opportunities are identified
and financed•

Data is tracked routinely and consistently by
locations

3M, as a science-based company, supports theproactive approach of science-based GHG emission
reduction targets. We have a long record of being
proactive on the matter of climate change, as demonstrated by our 67.3 percent absolute reduction in GHG
emissions from our operations through 2016, from a
2002 baseline. This ambitious reduction currently aligns
with the concept of science-based goal setting, in that it
far exceeds the reductions called for to date in the Intergovernmental Panel on Climate Change (IPCC) Fourth
Assessment Report (AR4). See Looking forward below
for additional information.

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

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

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

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

148 | 3M 2017 Sustainability Report

Nearly 800,000 MWh of renewable energy use will
be added globally. The primary sources of renewableenergy will be wind and solar.

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

3M is in a leadership position due to our early actions,beginning more than 10 years ago, to reduce our greenhouse gas emissions. We are committed to continuingthat leadership even as we grow the company, and tohelp our customers address the issue of climate change.

By conserving energy, reformulating products andcontrolling high global warming potential emissions, 3M
has been able to achieve industry-leading GHG emission
reductions. Other companies are setting goals to movecloser to the achievements we have already realized.

2025 Goal: Help 3M customers reduce their GHGs by
250 million tons of CO2 equivalent emissions throughuse of 3M products.

While 3M has made significant GHG emission reductions across our global operations, we realize we canmake far greater contributions by helping our customers
reduce their GHG emissions through the use of our
products. Additional information on how we work withour customers, see Our Customers.

Our Actions
Total Energy Use
Building on our 30 percent improvement inenergy efficiency between 2005 and 2015, our3, 5, 62025 goal is to increase energy efficiency by anadditional 30 percent indexed to net sales. This willkeep our global energy use nearly flat over the next 10
years, as the company grows.
G4

EN

Holding treasure hunts to findconservation opportunities
In 2016, 3M conducted energy treasure hunts at eight
3M locations, focused on building up energy-based
project hoppers and, ultimately, making continuous
improvement toward the company’s 2025 Goals.
Over $2.5 million of energy savings were identified atthese locations, with active implementation strategies
being put in place for the higher priority projects.

Combined heat and power
We also identified areas of focus that will make a
step-change in the energy and carbon intensity of ouroperations. The implementation of combined heat andpower systems and heat recovery systems at certain 3M
locations has a large potential to improve efficiency andreduce our combined Scope 1 and 2 GHG emissions. The
implementation of advanced energy information systems
in our manufacturing locations is expected to give
operations personnel information they can use to more
effectively manage energy use.

ISO 50001
The internationally recognized standard of ISO 50001
and the U.S. Department of Energy’s (DOE) Superior
Energy Performance (SEP™) certifications aim tobuild a culture of energy management at the location,
where everyone is aware of their opportunities toincrease energy efficiency in site operations; movingfrom the mindset of delivering energy projects in aloosely organized fashion to a structured system ofmanagement. By integrating the systematic ISO-based
framework of plan-do-check-act for the managementof energy in on-site operations, our locations have seensavings in energy costs and consumption, expansion of
employee engagement, and increased visibility to thetracking of site energy performance. 3M has been busy
increasing its ISO 50001 and SEP certified profile, with28 locations that are certified or are working towards
certification to ISO 50001 and SEP 2016.

U.S. Department of Energy Recognizes
3M’s Innovative Enterprise-WideApproach to ISO 50001 Certification
In May of 2016, the DOE held a Better Buildings Summit
in Washington D.C, where four companies including
3M were recognized for achievements in ISO 50001
certifications. During this event, it was announced thatfive 3M locations completed the certification process
to ISO 50001. Included in the 3M enterprise-wide ISO
50001 certificate will be these five locations, as well as
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How We Work | Environmental Management | Climate and Energy

recertified to the Silver level in 2015. Moving forward,
enterprise-wide certification will include:

Global Energy Use
MMBTU

•

Leverage of the already-developed implementation manual, standard operating procedures,
corrective action/preventative actions reporting
system, and data analysis tools•

Reduction in future audit costs through samplingbased audits•

Strengthening internal benchmarking and information sharing through networking and internal
auditing•

Reinforcement of systematic management ofenergy at our top-consuming locations

30,000,000

20,000,000

10,000,000

At time of certification in April, 2016, 3M ISO
50001-certified locations had achieved a collective
improvement in energy intensity of 10.5 percent.

0
2005

2010

2012

2013

2014

2015

Global Energy Use
MMBTU per MM USD Net Sales

2016

3M Canada is first Canadianorganization to be ISO 50001 Enterprise
Level Certified"It's through initiatives like ISO 50001 and Superior
Energy Performance® (SEP™) certification that 3M canachieve its ambitious global Sustainability objectives,"
said Richard Chartrand, 3M Canada executive director,
Energy and Electronics Business Group and executive
sponsor, Sustainability.

1,350
1,200
1,050

Lighting Challenge

900

3M developed a Lighting Challenge for all of our
locations by taking advantage of the advancementsof light-emitting diode (LED) technology. 3M is in theprocess of upgrading its lighting systems from conventional fluorescents and metal halide to the more efficient
LED lighting where possible. These improvements will
increase the energy efficiency of the lighting systems
by 40 percent to over 300 percent in some cases.
It is estimated that over 250,000 lamps have beenpurchased for installation in 2016 with a continuing
effort in 2017. It is estimated that approximately $6
million will be saved in energy costs globally throughout
the 3M sites.

750
600
450
300
150
0
2005

2010

150 | 3M 2017 Sustainability Report

2012

2013

2014

2015

3M catches the wind in Texas
On February 9, 2016, Invenergy, a leading provider ofrenewable energy, signed an agreement to provide 3Mwith 120 megawatts of wind power from the GunsightWind Energy Center located in Texas. “This agreement
is an important and significant step toward accomplishing our company goal of increasing renewableenergy to 25 percent of our total electricity use by2025,” said Jean Bennington Sweeney, vice president,
3M Environment, Health, Safety and Sustainability andCSO. “Perhaps even more importantly, this is an exciting
step in helping to transform the way the world uses
energy. Innovation and partnerships like this one with
Invenergy are critical to improving our business, ourplanet and people’s lives across the globe.”

Direct (Scope 1) andIndirect (Scope 2)
Since 2002, 3M has reduced Scope 1 GHG
emissions by 75.3 percent, providing a direct
15-19
and immediate reduction in our impact on theenvironment. During this same timeframe, we haveachieved a 67.3 percent reduction in absolute Scope 1
and 2 Location-based GHG emissions. What makesthese reductions even more impressive is that theyoccurred even as the company grew sales and production during this timeframe.
G4

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2016

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How We Work | Environmental Management | Climate and Energy

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

Greenhouse Gas Emissions, Scope 1 and Scope 2
Million Metric Tons CO2 equivalents
20

1,200

New
Methodology

18

New
Methodology

1,000

16
14

800

12
10

600

8
6

400

4
2

200

0
2002**

2005

Scope 1 GHG Emissions(AR5/MRR Method)

2010

2012*

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

2013*

2014*

Scope 1 GHG Emissions(AR4 Method)

2015*

2016*

0
2002**

Scope 2 Location Based
GHG Emissions(AR4 Method)

2005

Scope 1 GHG Emissions(AR5/MRR Method)**2012-2016 US EPA GHG-MRR/IPCC AR5 based inventory accounting is not directly comparable to 2002-2011 WRI/IPCC TAR, AR4 based GHG accounting.
**2002 inventory recalculated according to US EPA GHG-MRR/IPCC AR5 methodology (2.7% increase over original reported value)

2010

2012*

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

2013*

2014*

Scope 1 GHG Emissions(AR4 Method)

2015*

2016*

Scope 2 Location Based
GHG Emissions(AR4 Method)**2012-2016 US EPA GHG-MRR/IPCC AR5 based inventory accounting is not directly comparable to 2002-2011 WRI/IPCC TAR, AR4 based GHG accounting.
**2002 inventory recalculated according to US EPA GHG-MRR/IPCC AR5 methodology (2.7% increase over original reported value)

The GHG inventory has been calculated from 2002 to
the current year by the 3M Environmental Laboratory inaccordance with the World Resources Institute (WRI)/World Business Council for Sustainable Development(WBCSD) GHG Protocol Corporate Greenhouse Gas
Accounting and Reporting Standard. The 3M Environmental Laboratory maintains an accreditation to ANSI/
ISO/IEC 17025 through A2LA, an ILAC MRA signatory,
for a number of laboratory methods. Although it is notpossible to put 3M’s GHG inventory methodology on
the lab’s scope of accreditation, our calculation methodology has been improved by working with a number of

152 | 3M 2017 Sustainability Report

the quality system elements required by ANSI/ISO/IEC
17025, including:•Defined responsibilities and interrelationships of
all key staff•

Documentation of key personnel qualifications•

Control over quality system documents andprocedures•

Control of records•

Corrective and preventive action system•

Internal audit program•

Documented and approved calculation
procedures.

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

GHG emission reductions are achieved through avariety of methods: improving process and equipment
efficiency, upgrading equipment, reducing our demandfor energy use, increasing our use of renewable energy,
and implementing and maintaining pollution control
technologies. These methods, and more, are integral
to the company’s overall success and assist us with thechallenge of addressing climate change.

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How We Work | Environmental Management | Climate and Energy

Greenhouse Gas Quality System
Relevance

CompletenessConsistency

Accuracy

Transparency

Clearly definedboundaries

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

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

Audit (internal andexternal) GHG
emissions andcalculations

Report on GHG
emissions andactivities

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

EN

For Scope 3 Categories 1 (Purchased Goods andServices) and 2 (Capital Goods), a new model has beenutilized since 2015, based on characteristics of theeconomy in 2014. The new model reflects the improved
carbon intensity, or emissions per dollar, of the economy.
Since emissions prior to 2015 for these categories werebased on the model available at the time (based on 2002
economic data), data since 2015 is not directly comparable to past years.
Categories 9, 10, 11, and 12 (related to emissions associated with sold products) are challenging, due to thenumber and complexity of products we sell, and thediversity of their uses by businesses and consumers
across the globe. Many of our approximately 55,000plus product lines are “intermediates” with manypotential downstream applications, each with a different

154 | 3M 2017 Sustainability Report

GHG emissions profile, making it impossible to reasonably estimate downstream emissions.
With the introduction of Business Transformation to
3M, our systems are becoming more unified, and this isproviding us with better data to more accurately judge
and make decisions. It is also helping us create real,consistent changes throughout our global operations.
We expect Business Transformation to help drive ourefforts to reduce all GHG emissions, including Scope 3
GHG emissions.

Evaluating our Customer's
Potential Greenhouse Gas
Reductions
3M has a process in place to estimate our claim
for customer GHG emission reductions based
7on the use of 3M products. This process isbased on the ISO 14064-2 standard for determining
GHG emissions reductions. The standard comparesemissions from the project scenario against a baseline
scenario. The project scenario estimates the GHG
emissions including manufacturing and use of the 3M
product. The baseline scenario covers the samefunction, but without the 3M product. In some cases,
there is no suitable replacement for the 3M product, so
the baseline scenario is the absence of the 3M
product entirely.
G4

EN

The boundaries of the 3M product scenario are nature togate or nature to grave, in which we include all emissions
from raw material extraction and purification, manufacturing, and use.
In some of the studies, where appropriate, we include
disposal of the 3M product. The 3M product scenario
uses high-level estimates and averages for manufacturing emissions (e.g. energy per pound of productproduced at a location). This allows these studies to becompleted more quickly, but at a higher uncertainty.

In 2016 alone, our customers avoided emitting about
13 million metric tons CO2 equivalents through use ofvarious 3M product platforms calculated in accordancewith the ISO 14064-2 and 3M Environmental Laboratory
standard operating procedures.

Air Quality Management
G4

EN

21

The boundaries of the baseline scenario match the 3M
product scenario, except that we apply conservative
assumptions. Conservative is defined as a choicethat creates a minimum in the GHG emissions of thebaseline scenario. For example, if data does not exist
for a chemical in the baseline scenario, we assume theemissions to be zero.
The uncertainty for all the studies is ±50 percent.
Although this sounds high, ±50 percent approximatesdata of fair to good quality as defined in the WRI/WBCSD Product Life Cycle and Accounting Standard
Quantitative Inventory Uncertainty Guide.

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

As a company that uses many solvent-based materials,
3M inherently releases volatile organic compounds(VOCs) from many of our manufacturing processes.
Because of this, many of our locations require permits
with rigorous VOC tracking requirements. Even wheretracking is not required from a regulatory perspective,
3M voluntarily tracks VOC usage and emissions frommajor sources of emissions in order to identify further
opportunities for reduction. 3M has developed internal
programs to minimize its VOC emissions. We track andreport emissions based on raw material usage, engineering estimates and stack test data.

Global Volatile Organic Compounds (VOCs) Emissions
Metric Tons per MM USD Net Sales
0.350
0.300
0.250
0.200
0.150
0.100
0.050
0.000
2005

2010

2012

2013

2014

2015

2016

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How We Work | Environmental Management | Climate and Energy

Air Emissions Reduction Program(AERP)In 1987, to address corporate environmental responsibility for volatile organic compound (VOC) emissions,
3M voluntarily implemented an Air Emission Reduction
Program (AERP) that has produced dramatic reductionsof VOC emissions.
A major component of the AERP requires installationof an emission control device or other equally effective
solution any time VOC emissions exceed 100 tons per
year. In 2015, only two 3M locations exceeded thatthreshold, and both have been effective in addressing
emissions in 2016. In fact, using different approaches,
each achieved voluntary emission reductions exceeding
the requirements of state and federal regulations.
The first is 3M Knoxville. Under the location’s Title V
federal operating permit, a coating line could vent tothe atmosphere. However, a 2016 engineering project
re-routed emissions to the location’s existing Regenerative Thermal Oxidizer emission control unit insteadof venting to the atmosphere. This change led to an 85
percent reduction in emissions from that coating line.
The second is 3M Menomonie. Although meetingthe emission limits under its Title V federal operating
permit, this location opted to reformulate several VOC-­
containing products to a water-based coating, a changethat is expected to voluntarily reduce VOC emissions
by 72 tons per year.
For many 3M manufacturing processes, NOx, SO2, CO
and PM are also emitted as products of combustion.
These pollutants are tracked and reported externallywhere required by federal, state or local regulations forindividual locations. 3M internally tracks all fuel usage
and calculates the combustion emission rates using
accepted emission factors.
Main VOC by Source Type•

3M’s VOC emissions are primarily attributed tocoating lines•

Reactors and mixing are also significant sourcesof VOC emissions

156 | 3M 2017 Sustainability Report

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

Implementing and maintaining
pollution control
3M has made significant progress in reducing air
emissions—at the source, and by improving process
efficiencies. Where emissions cannot be reduced within
the process, 3M installs and maintains air emission
control equipment as required by federal, state andlocal regulations. We evaluate all equipment options andselect those that are the most environmentally effective
and cost-effective. Technologies include Thermal
Oxidization, Solvent Recovery, Carbon Adsorption,
Biofiltration, Electrostatic Precipitators, Baghouses,
Scrubbers and Cyclones.

Looking forward…
3M is supporting the further implementation of ISO
50001 though a collaborative effort with the Canadian,
Mexican and U.S. governments. Three 3M locationsin these countries have joined a North American pilot
program, aiming to achieve certification through collaboration by June 2017.
3M has begun work to understand and evaluate methodologies for setting a science-based GHG emission
target. One challenge is the current gap in availability ofa certified or reference reduction scheme for all entities.
More specifically, we have evaluated the currently
available reduction methods provided by the Science
Based Targets Initiative (SBTI) and determined that these
may not support the operations of a large, highly diversified entity such as 3M.

Given the above circumstances, 3M is now actively
working to find a science-based target approach that
could be appropriately applied to a company with sucha broad set of product categories and markets served.
Moving forward, 3M will continue to track how the SBTI
expands their standard science-based goal methodology
offerings, evaluating other options that may become
available for applicability to our diverse operations. We
will also continue to strive toward the achievement of
our four existing climate and energy related goals.

Ozone Depleting Substances
The Montreal Protocol is the first worldwide
agreement designed to protect human health20
and the environment against the adverse effectsof the depletion of the stratospheric ozone layer. The
Protocol identifies the list of ozone depleting substances(ODS) that are targeted for control practices, reductions,or total phase-outs and provides a phase-out schedule.
In addition, some countries have established regulations
regarding the management of refrigeration appliances.
G4EN

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

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How We Work | Suppliers

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

We understand that our Sustainability impacts
extend beyond our own operations. By
12purchasing raw materials and services fromsmall and large companies all over the world, we participate in a global, complex, supply chain. And it doesn’tstop there. Our suppliers have their own suppliers,
extending back to the original source of each material
we use.
G4SD

to maximize the positives and mitigate the potential
negatives by aligning our supplier expectations with
our own corporate values. We expect our suppliers to
be transparent about their environmental and social
practices, provide improvement ideas and work with us
to transform our shared supply chain when needed.
Finally, we actively verify our suppliers’ performanceagainst our expectations on a risk-prioritized basis,using our Due Diligence Management System, which ismodeled after the OECD Guidelines for Multinational
Enterprises.
Our Due Diligence Management System consists ofthe following elements, which aid with our continuous
improvement efforts.

At each step in the supply chain, there are benefits(like employment and community-building) as wellas the potential for negative impacts (like pollution orunsafe or unfair labor practices). Our commitment is
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How We Work | Suppliers

3M Supply Chain Due Diligence Management System
ValuesTransparency

Transformation

Verification

Reportestablish strong
policies andmanagement
systems

identify and assess
risks in the supply
chain

design andimplement a strategy
to respond to
identified risks

audit supply chain
due diligence

supply chain due
diligence activities

Strong Policies aligned with
our Values
In April 2016, weupdated our
32
10
14
9
corporate responsibility expectations for suppliers. The 3M Supplier
Responsibility Code outlines 3M’s basic expectations in
the following areas:
G4

G4

EN HR

•

G4

LA

•

G4

SO

Labor: this section is aligned with the 3M
Human Rights Policy, and includes importantconcepts like freely chosen employment (noforced, bonded or trafficked labor), restrictions
on working age (no child labor), and appropriate
working hours and wages. Among other updates,
we added more details on our expectations
for suppliers in the area of forced or bonded
labor, such as no holding and denying access toemployees’ identity documents and no requirements for workers to pay employers’ recruitment
fees. Setting these expectations helps assure
our suppliers’ actions will reflect 3M’s values onhuman rights as well as the values underlying
laws such as the California Transparency inSupply Chains Act, the United Kingdom Modern
Slavery Act, and the U.S. Federal Acquisition
Regulations (FAR) on forced labor and humantrafficking.

160 | 3M 2017 Sustainability Report

Health and Safety and Environment: we expect
our suppliers to care as much about the safety of
their workers and their communities as much as
3M does, and to implement proper procedures
and controls to protect them.

•

Ethics: this section is aligned to the 3M Codeof Conduct, and holds our suppliers to thesame high standards of honesty and integrity.
It expects our suppliers to prohibit any form ofbribery and corruption, and prevent conflictsof interest.

•

Management Systems: we expect our suppliers
to systematically conform to the 3M Code as
well as all legal requirements, and to commit tocontinuous improvement.

The Code is based on the 3M corporate values forsustainable and responsible operations and aligns
with the 10 Principles of the United Nations Global
Compact, of which 3M is a signatory. Our Code is alsomaterially consistent with the Electronics Industry
Citizenship Coalition (EICC) Code of Conduct. In 2016,
3M’s Electronics and Energy Business Group becamea member of EICC, a nonprofit group of the world’s
leading electronics companies committed to improvingsocial, ethical and environmental conditions in the global
electronics supply chain.
The Supplier Responsibility Code, as with our previous
3M Supply Chain Policies, establishes 3M’s expectations
for new and existing suppliers anywhere in the world,and for any supplied material or service. Our new

supplier vetting process includes review of the Code
expectations and confirmation that their programs andpractices as well as their sub-contractors involved in the
supply of products and/or services conform to standards
that are consistent with the 3M Supplier Responsibility
Code. Our contract agreements have included expectations from our Supply Chain Policies, and they are being
updated to incorporate the Code.
We expect our suppliers to establish and implement theirown relevant policies and programs in alignment withthis Code, and to enforce these expectations with theirown suppliers, thereby propagating our high Sustainability standards up our supply chains.

Additional Expectations forHigher-risk Supply Chains
Our Supplier Responsibility
Code represents the baseline
13
33
15
expectations for all of our
suppliers. Certain parts of our supply chains warrant
additional formal expectations to drive more sustainable
and responsible practices. 3M has prioritized forest
products as one of those areas, due to potential environmental risks like deforestation and threats to highconservation values, potential human rights issues likeinfringement of Indigenous peoples’ rights, and potential
unsafe labor practices. As a global paper purchaser andSustainability leader, 3M is well‑​positioned to positively
influence practices throughout the forest products
supply chain. We adopted our current Pulp and Paper
Sourcing Policy in the spring of 2015 to set standards of
excellence for our suppliers and their suppliers throughall tiers of supply to the forest. It’s designed to assurethat the virgin wood fiber used in our paper-based
products and packaging comes from sources that
protect forests and respect the rights of workers andpeople who live in or may depend on forests fortheir livelihood.
G4

G4

G4

EN EN LA

Another prioritized area in our raw material supply
network is in our sourcing of minerals, in particular tin,tantalum, tungsten and gold (3TG). 3M deplores theviolence and human rights abuses that have occurredin the Democratic Republic of Congo and adjoining
countries and is committed to supporting responsible
sourcing of 3TG from the region. Accordingly, 3M
has adopted a Conflict Minerals Policy, as well as

3TG-related expectations as part of our Supplier
Responsibility Code. 3M expects its suppliers to adopt
a similar policy and due diligence management system,
and require the same of their suppliers.
3M is an active member of the Conflict-Free Sourcing
Initiative (CFSI), an organization established by EICC
and the Global e-Sustainability Initiative (EICC-GeSI),
which develops tools and guidance for companies on
conflict minerals. We encourage our suppliers andother companies to participate in CFSI, to advance theconflict-free sourcing of 3TG globally.
Our membership in CFSI and various sub-teams suchas the Smelter Engagement Team (SET), Plenary Teamand special activities like the Due Diligence White Paper
update have provided an opportunity for 3M to offer ourideas and learn from other member companies as we all
work together on this important journey.
We’re staying abreast of emerging legislation such as theEuropean Commission’s regulation on conflict minerals,
to assure that our conformance and due diligence
management systems are aligned. Members of our
European Government Affairs team have been closelyaligned with industry and government to understandthe scope, impacts and timing of the new European
regulation. The team has proactively assessed potential
applicability so 3M will be best prepared to implement
the new rule.

Supplier Risk Assessment &Supply Chain Transparency
3M's supply chain involves over
88,000 suppliers from more than 120
33
2
countries classified in 10 categories
and over 200 sub-categories. The focus of our risk
assessment is on goods-producing suppliers that feed
into our saleable products. These suppliers represent
25 percent, or almost about 22,000, 3M tier 1 Production Materials Suppliers and Contract Manufacturers.
G4

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EN SO

With such a diverse, broad global supply chain, it’s
important that we assess the relative potential environmental and social risks within our supplier network, andconcentrate the majority of our Due Diligence Management System actions on the higher-risk supply chains.

#improvinglives | 161

How We Work | Suppliers

Responsible Sourcingof Minerals
Annually, we work with each of our businesses thatpurchase 3TG minerals to identify suppliers that should
be prioritized for engagement. We ask these prioritizedsuppliers to gather information on the 3TG smelters andrefiners in their supply chains and report to us throughthe current CFSI Conflict Minerals Reporting Template(CMRT). Our supplier requests include links to 3M’s
Conflict Minerals website, which includes our Conflict
Minerals Policy and 3M training on how to attach their
CMRT template to 3M’s website survey tool. This
website also directs suppliers to training resources
available through the CFSI.

Sustainable Pulp and Paper
Our Pulp and Paper Sourcing Policy makes it clear that
we want to source paper products from suppliers whoshare our values and are committed to protecting theworld’s forests. Annually we evaluate our suppliers of
pulp and paper raw materials, paper-based third-party
manufactured products, and paper-based packaging
to prioritize engagement with those most significant toour business, and those with the possibility of supply
chain entities of higher environmental or social risk. Our
engagement hinges on extensive communication andeducation of our suppliers on our policy expectations,and inquiries regarding our suppliers’ policies andsystems to assess the Sustainability of their supplier
network and conformance to our code and policy. We
also expect our suppliers to disclose the entities in their
supply chain, all the way to the forest source. We believethat only through transparency can we truly identify
potential Sustainability risks and collaborate to raise theperformance of our shared supply chains.
In 2016, 3M began using a cloud-based platform toimplement our information requests via online surveys
in a highly secure format. Our suppliers can provide
complete supply chain information all the way to theforest sources, or they can easily forward parts of theonline survey to their suppliers for completion (paper orpulp mills, for example). We are actively working withthe cloud-based platform and our suppliers to make thesystem as effective as possible. We aim to work with162 | 3M 2017 Sustainability Reportsuppliers and peer companies to document as much of
our global paper supply chain as possible, to amplify
our efforts to drive sustainable practices throughout the
supply chain.

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

3M has a long-standing commitment to sustainablebusiness practices and supporting the economic successof our communities, including working with both diverseand small-business suppliers. For 3M purposes, a diverse
supplier is any supplier who qualifies for one or more of
the following classifications: Minority-owned business,
Women-owned business, Small Business (including
Small Disadvantaged, HUBZone, Woman, and Veteran/Service Disabled Veteran).
3M proactively identifies diverse suppliers to procure
goods and services, strongly encourages the use ofdiverse suppliers across our sourcing organization,and reaches out through our involvement with variousorganizations, including the National Minority Supplier
Development Council (NMSDC), Women’s BusinessEnterprise National Council (WBENC), Metropolitan
Economic Development Association (MEDA), Small
Business Administration (SBA), and others.
3M establishes goals and regularly tracks the dollar
value of goods and services purchased from small
businesses and diverse suppliers in concert with goals
set annually with the U.S. Federal Government as partof our Subcontracting Plan for Federal Government
contracting.
To achieve our goals, 3M has implemented a four-partstrategy aimed to:
1. increase our spend with current diverse suppliers
by reviewing our existing diverse suppliers by
diversity category

2. identify additional diverse suppliers in our
existing supply base by reviewing our top­non-diverse suppliers by spend category
3. find “new-to-3M” diverse suppliers
4. further disrupt the status quo by working tomove some of our tier 2 dollars to tier 1 andfocusing on diverse suppliers in our request for
proposal (RFP) activity
In 2016, 3M spent $1.4 billion dollars with small businesses, representing 27 percent of our total US domestic
spend. We also spent $200 million dollars with diverse
suppliers, which represents 3.9 percent of total US
domestic spend. Our progress is routinely communicated to leadership across the organization.
We remain committed to supporting small businessand diverse suppliers and their positive impact on theeconomic viability of communities. 3M continues toreassess elements of our approach, working across theindustry to glean best practices.
More on our Supply Diversity program can be found in
the Supplier Diversity section of 3M.com.

Our Actions
Responding to risks,transforming our supply chains
We are constantly managing changes
in supply markets both where there is
12
2
an opportunity to extract value anddefensively where necessary to secure supply. As
described above, we focus efforts on the salient issues in
categories where human rights and environmental risks
are the greatest, namely our use of certain minerals thathave the potential to be sourced from conflict areas, andour use of timber-based products and other plantmaterials. More broadly, we conduct robust risk prioritization to determine other suppliers we will engage via anassessment against our Supplier Responsibility Code.
G4

G4

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

Conflict Mineral Program
undergoes continuous
improvements
3M’s Conflict Minerals program, now in its fourth year,
has gone through continuous improvement, based onlearnings from past campaigns and identifying ways
to optimize and increase the effectiveness of program
activities.
In 2016, a new data collection method requesting
suppliers to simply attach their CMRT in 3M’s
web-based survey tool, has produced increased participation and quicker responses from suppliers.
Also, in an effort to improve supplier response rates,
distributor engagement, and supply chain transparency, 3M worked with CFSI on distributor-related
due diligence and outreach. A survey sent to CFSI
members sought insight about current situations, bestpractices and recommendations for obtaining necessary
information from distributors. Responses to this survey
will increase overall industry visibility of minerals in thecomplex supply chain, identify areas for additional due
diligence efforts, and positively influence those areas ofour supply chain.

Paper Policy implementation
identifies transformation
opportunities
3M depends on our suppliers to take responsibility forpolicy conformance, and we are impressed with theleadership many of them are demonstrating. We are
motivated to retain and grow business with our most
responsible and responsive suppliers.

#improvinglives | 163

How We Work | Suppliersa Supplier Corrective Action Request (SCAR) is established to assure appropriate resolution and conformancewith 3M’s requirements. If a supplier is unable to close
the gap(s) within a reasonable timeframe, alternate
actions are discussed with a cross-functional businessteam to escalate and resolve the situation.

Pulp and Paper Sourcing Policy
Engagement Status, Percentage
100Over 5,000 self-assessments or on-site audits ofsuppliers have been conducted in prioritized countries,
including China, India, Korea, Malaysia, Taiwan,
Thailand, Brazil, Mexico, Russia and Turkey in the pastseven years.

80

60

40

Product Paper

20

Packaging Paper

0Overall

2015

2016

Throughout our policy implementation, we have seen
several examples of marked improvements in responsible sourcing practices as a result of our engagementwith suppliers. These include:•

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

suppliers establishing new Sustainability positions
within their companies•

significant increases in supply chain traceability
and transparency•

increased engagement by our suppliers with their
upstream supply chain

We partner with The Forest Trust, TFT, for theirexpertise in responsible sourcing policies and improving
forest management practices across global supply
chains. They help us review the information we obtainfrom our suppliers, and combine that with geography
and industry specific knowledge to conduct “desktop”
risk assessments of our supply chains. We use theseassessments to prioritize further engagement to learn
more about our suppliers’ responsible sourcing andsustainable forestry practices. This deeper engagement
could take the form of a series of web conferences,
164 | 3M 2017 Sustainability Report2017 target

in-person meetings, or field assessments at the mill
and/or forest level. We do not limit this engagement
to our direct suppliers. In fact, as appropriate, we will
work directly with tier 2 or tier 3 suppliers on policy
conformance verification work, with a goal of involving
our direct (tier 1) supplier(s) in these activities wheneverpossible. In 2016, 3M and TFT conducted two field
assessments of tier 2 pulp mills in our supply chain.
In both cases, a key tier 1 supplier accompanied theassessment. Read on for more information on theseassessments.

Verifying our Supplier
Performance
Aside from our pulp and paper
supplier-specific process, our
32
10-11
14-15
general supplier risk assessment process is applied to prioritized suppliers, which
receive a self-assessment questionnaire (SAQ) based on
the expectations in our Supplier Responsibility Code.
The completed SAQ is reviewed by 3M personnel todetermine if an on-site assessment is necessary. Assessments cover the same content as the SAQ, and may be
performed by 3M team members or third party
providers. If the assessment identifies gaps or findings,
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EN HR

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LA

Minerals supply chain
assurance

A pulp mill in Ontario, Canada

CFSI develops standards for third party audits ofsmelters and refiners to validate their processes forassuring processed 3TG originates from sources that do
not fund conflict or support human rights abuses in the
Democratic Republic of Congo or adjoining countries.
3M was an early contributor to the CFSI Initial Audit
Fund. The fund supports responsible sourcing of 3TG byproviding financial assistance to smelters for first-year
independent audits under the Conflict Free Smelter(CFS) Assessment Program, in order to validate conflictfree status according to CFS auditing protocols.
Remote technology used to track harvesting activities

Paper Policy implementationon the ground
With TFT, we have conducted seven field assessments
so far: three in China, one in Taiwan, one in Brazil, one in
Sweden and one in Canada. Two 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 TFT helps us to understand first-handthe challenges faced by pulp and paper companies andforest managers around the world. This in turn enables
us to actively participate in developing solutions andpushing forward conversations about responsible
sourcing and sustainable forestry.
Each assessment results in a comprehensive reportdetailing the supplier’s performance against ourpolicy requirements, and action items to address any
performance gaps. We expect each supplier to develop

corrective action plans with reasonable timelines,
and continue to collaborate with 3M on resolution ofidentified opportunities. More information on theseassessments can be found in our Pulp and Paper
Sourcing Policy progress reports (linked below).

Reporting to our stakeholders
For more information on our programs, see the following
disclosures or 3M Supplier Direct:•

3M’s Form SD and Conflict Minerals Report, SEC
Filings•

Pulp and Paper Sourcing Policy Progress Reports•

California Transparency in Supply Chain
Disclosure•

UK Modern Slavery Act Disclosure#improvinglives | 165

How We Work | Suppliers

Conservation philanthropy
In addition to our policy implementation, 3M continues
to work with non-governmental organizations (NGOs)
to advance forestry conservation and best management
practices. One of our main partners in this endeavor
is The Nature Conservancy (TNC). From Australia
to Canada, Indonesia to the United States, 3M has
supported TNC’s global conservation efforts for morethan two decades; support that has helped advance theConservancy’s work to protect critical habitats and lands
around the world, including safeguarding hundreds ofmillions of acres of forests.
Recently, 3M committed significant initial and ongoingfunds to TNC efforts in Indonesia’s East Kalimantan
Province to protect nearly 80,000 square miles of arare and biologically important rainforest. One of TNC’s
most ambitious forest projects to date, the Conservancy
is partnering with Indigenous communities in the area toaddress forest preservation, wildlife protection, species
extinction, and climate change.
This project is also translating Reducing Emissions from
Deforestation and Degradation (REDD)+—a mechanismthat encourages the sustainable management of forests
through the power of global carbon markets—into
on-the-ground conservation results that protect trees
and combat climate change.

Collaboration for change
3M Brazil is a signatory to The National Pact to Eradicate
Slave Labor, which was established in 2005, and is
now institutionalized in InPACTO—the Institute for the
National Pact—a trade association focused exclusively
on collaborative efforts among members, including 3M,
committed to the goals of the National Pact. 3M alsoprioritizes its suppliers to monitor and trace their supply
chain to meet 3M corporate values for sustainable andresponsible operations.

Supplier of the Year Award
Our Supplier of the Year (SOY) award program seeks torecognize those elite suppliers that proactively help us
succeed in accomplishing our Vision of 3M Technology
Advancing Every Company, 3M Products Enhancing
Every Home and 3M Innovation Improving Every Life.

166 | 3M 2017 Sustainability Report

This year, 3M recognized 11 suppliers among thousandsin its global supply base for world class performancein providing products and/or services. These suppliers
were identified and rated based on strategic spend,
contract compliance, actions taken to improve 3M’s
relevance and overall supplier performance (quality,
delivery, responsiveness, cost, technology roadmaps).
3M also presented awards to suppliers in the areasof Sustainability, Diversity and Ideation. An awards
ceremony and dinner were held on September 11th and12th at 3M’s St. Paul campus.

Supplier Ideation

streamline existing processes and provide a higher levelof assurance with 3M’s expectations and risk mitigation
efforts. As appropriate, this process will be replicatedin other higher-risk areas.

suppliers, educating them on the program as well as theneed for their alignment with it—with the intent of positively influencing others to support responsible sourcing
practices and participate in the CFSI.

In our prioritized minerals and pulp and paper supply
chains, we will be working to further institutionalize andautomate our supplier engagement and transparency
efforts, so that we can apply more time and resources
to transformation projects that make on-the-ground
impacts.

Finally, we are collaborating with providers who provide
in-region education and support to Artisanal andSmall-Scale Mining (ASM), to understand how we canbest partner with them to make a direct impact in the
DRC region. The impact could come from providing
health and safety educational sessions and/or materials.
Another potential tactic: a video that demonstrates
success stories that come through multi-stakeholder
groups working together and leveraging each other’s
strengths.

We will continue to seek out partnerships to amplify
our efforts in combatting deforestation and exploitation
around the world.

3M has a process for its suppliers to submit improvement ideas that will benefit both operations from atechnical, quality, responsiveness, delivery, cost, or
Sustainability standpoint. Suppliers obtain access to thesystem, and submit their ideas which are then reviewed
by the 3M category owner(s) who decide when to
engage on viable projects. This has been a valuableapproach for 3M to collaborate with its suppliers andcontinually improve its products and processes.

In our Conflict Minerals program, we will continue
to enhance our work as we refresh our due-diligencepractices. We are evaluating third party providers as
a way to streamline the process and leverage external
expertise increasing the visibility and transparencyof our supply chain. We will continue to work with

Looking forward…

Cumulative Supplier Assessments

We are actively seeking out opportunities to collaborate
with peer companies, customers, suppliers and otherpartners to standardize supply chain Sustainability andcorporate responsibility goals and toolsets. This will
improve consistency and efficiencies across the value
chain, resulting in greater synergy and impact.
Among other 2017 initiatives, 3M is planning to
introduce a Supplier Declaration certificate that aligns
with its Supplier Responsibility Code. This certificate
will enable existing and potential new suppliers and theirsub-contractors to confirm programs and practices they
follow are consistent with 3M’s Code. This process willaugment our supplier assessment program, which wewill continue to strengthen and focus on salient issues inour supplier network, in alignment with our Code.

6,000
5,000
4,000
3,000
2,000
1,000
0
2012

2013

2014

2015

2016

To enhance our due diligence and risk management
activities in the Asia region, 3M is implementing acoordinated approach with its Supplier Responsibility
Code, quality systems, cyber security and financial risk
assessments, initially focused on outsource suppliers
for consumer goods. The coordinated approach will

#improvinglives | 167

What We Create |What We
Create168 | 3M 2017 Sustainability Report

Introduction170

Our Customers

172

Innovation Management

178

Our Products

184#improvinglives | 169

What We Create | Introduction

Introduction
What we create.
Our customers’ challenges are our challenges. Using our
46 technology platforms and collaborative culture, weinvent products that help our customers solve the issues
they are facing in many areas, including health, safety,
and energy.
And we are not stopping here. We have establisheda new set of aggressive goals for 2025, ranging frominvesting in sustainable 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 around building
a diverse workforce and educating individuals on worker
and patient safety in healthcare and industrial settings.

170 | 3M 2017 Sustainability Report#improvinglives | 171

What We Create | Our Customers

Our Customers
Our Commitment

and can be leveraged by any of the businesses to serve
their respective customers or markets.

Many companies view Sustainability in productdevelopment as a challenge. At 3M, we see it as anopportunity. Science is just science. Until you make it
improve the world. That is what we at 3M strive to do
every day. Improve every life.

Where many companies view the topic of Sustainability
in product development as a challenge, at 3M we havetaken an offensive approach, working to identify andunderstand future Sustainability needs, and to expand
our portfolio of products with Sustainability advantages.

That’s precisely why research and development (R&D)
is such a big thing at 3M. Always has been, always willbe. In fact, in 2016, we invested $1.7 billion, or nearly 6
percent of our sales back into R&D, an investment thathelps produce more than 3,000 patents each year and,more importantly, helps connect our 46 technology
platforms to real-world needs and opportunities. The
unique thing about 3M is that no single business owns
any of these platforms. They are owned by the Company

172 | 3M 2017 Sustainability Report

By embedding Sustainability into our R&D process, ourbrands and the mindset of our suppliers and customers,
we’re able to move 3M’s growth to new levels andadvance our commitment to improving our business, ourplanet and every life.

#improvinglives | 173

What We Create | Our Customers

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

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

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

Proper use of health and safety products is critical toinfection prevention, personal safety and overall health.
Building on our existing customer education program,
we seek to help educate individuals on worker andpatient safety in both healthcare and industrial settings.

Our Actions
Thinking Customer First,
always.

one global, seamlessly integrated platform of standardized business processes that help us:•

improve the quality and responsiveness of service
delivery•enhance on-demand and self-serve capabilities forour customers•

promote collaboration and customer intimacy

In short, business transformation is helping us build
strength on strength and drive to higher levels ofcustomer satisfaction.

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

“Customer-inspired innovation”

Business Transformation starts
and ends with our customers

In 36 international labs—and in 54 technical centers—
our scientists work directly with local customers to solve
their unique challenges. We take the time to get to know
them, to learn how they live and work—and to understandwhat we can do to improve their lives.

174 | 3M 2017 Sustainability Report“Insights to Innovation” (i2i)
3M works “eye-to-eye” with end-user customers toinvent solutions to their unique problems.
This effort often makes use of the 3M Insights toInnovation process, a process that involves exploration,
optimization, validation and ideation, and ultimately
allows new business teams to move from “I think”
to “I know.”
Insights to Innovation includes a close focus on bothglobal and local megatrends. The way we look at it, withnew market needs come new opportunities to deliver
value to our customer.

Technical capabilities close
to customers
As an organization, we believe that the best way toacquire insights is to be close to the customers. With
that in mind, we have built a large global presence andinfrastructure as well as technical capabilities close to
our customers.
We have 54 customer technical centers across theglobe where our customers can experience firsthand thebreadth of 3M technologies and how they can benefit
from them. We also have labs in 36 countries where ourscientists work closely with our customers to develop
solutions for their specific problems.
Some of the problems addressed in our technical centersand labs are connected to regional and local megatrends. Globally, for example, rapid population growthin urban areas is creating challenges related to energy
efficiency, clean water and environmental protection.
Our local scientists leverage our technologies to develop
relevant solutions that are unique to their region, often

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

We have two different models
for gathering insights.

We have an initiative called Customer First that’s allabout understanding our customers’ business models,
what they have promised their customers, and what ourrole is in the value chain. Here are some examples of ourCustomer First approach in action:

3M Business Transformation is about establishing strong
links between business processes, people and information to provide a more positive overall experience forcustomers. These links will occur through the creation oflifting up bandages to inspect wounds and IV sites.
A simple idea struck him: Why not make the bandage
transparent? That led to 3M’s market-leading medical
dressings, which fit snug, breathe easy, and allow for
painless inspection.

This includes challenges our customers have come tous for help with, as well as challenges they didn’t evenknow they had, as the 3M scientist behind our creative
medical dressings can tell you. His division had a programthat allowed scientists to be embedded in a hospitalfor an entire week. He repeatedly observed nurses

Customertechnical center
Laboratory

More than 100,000 customers visited this year.

#improvinglives | 175

What We Create | Our Customers

collaborating with local customers. One example: 3M
scientists are working in the Greater China region to findsolutions that improve air and water quality. Anotherexample: 3M’s Singapore Smart Urban Solutions Lab has
focused on sustainable living, building on the regional
need to address clean water, clean air, energy efficiency
and more.
3M Nordic Customer Innovation Center
3M Romania Customer Innovation Center
3M Italia Customer Innovation Center
3M South Africa Customer Innovation Center

Addressing Customer
Sustainability Expectations
We know many of our customers have strong Sustainability and corporate responsibility expectations for their
suppliers, just as we do for ours. 3M always wants tobe the supplier of choice to our customers. As demonstrated in this report, we set our sights on world-classperformance in Sustainability and corporate responsibility, and we believe we meet or exceed customer
requirements in these areas.
As proud as we are to share our Sustainability story
with our customers, we are also motivated to influenceand encourage alignment and harmonization among theproliferation of industry standards and partner to drive
real Sustainability improvements where they are needed.

Partnering in global worker
and patient safety
In 2016, 3M hosted its second 3M Sustainability in
Health Care Summit, a forum for best practice sharing
and to advance Sustainability in Health Care. The
event was attended by executives from more than
50 hospitals. Additional information can be found at:
Sustainability in Health Care.
We also provide continuing education for healthcare
professionals through 3M's Health Care Academy.
This free training and education resource is dedicatedto helping professionals deepen their expertise andimprove patient care. Topics include: Ambulatory
Surgery, Auscultation, Edema Management, Hand
Hygiene, I.V. Site Care, Patient Monitoring, Professional
Development, Skin and Wound Care, Sterilization andMonitoring, and Surgical Solutions.

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

#improvinglives means making life easier andmore productive at home and at work.
We are creating innovative products that keep homes clean,
offices organized, and buildings well-maintained.

Consumer
176 | 3M 2017 Sustainability Report#improvinglives | 177

What We Create | Innovation Management

What We Create | Innovation Management

Innovation
Management
Our Commitment
Product Safety, Quality, andStewardship Principle

internally developed and manufactured product. See
our Code of Conduct section for more information on
this Principle.

Life Cycle Management

At 3M, product safety, quality,
and stewardship must always
14
27
1-3, 6
be primary considerations
during design, manufacture, marketing, and sales of 3M
products. 3M employees must follow all applicable laws,
regulations, and 3M policies, standards, and proceduresfor product safety, quality, and stewardship and must
report and respond to concerns in a diligent manner.

3M’s Life Cycle Management (LCM) Policy
states that LCM evaluations are to be
27
conducted on all new products before commercialization, and on a prioritized basis for existingproducts. The LCM evaluation helps identify opportunities associated with environmental, health and safety(EHS) performance. It also defines and manages EHS
risks and regulatory compliance throughout a product's
life cycle and supply chain.

We look at it as our responsibility to produce productswith superior environmental performance across their
entire life cycle, and to work with our suppliers andbusiness partners so that their operations support thesesame objectives. In addition, any product purchasedfrom an outside supplier for sale as a 3M productreceives the same product life cycle consideration as an

3M’s Life Cycle Assessment (LCA) Standard, issued in2014, defines how a product LCA must be conducted if
it is to be used for external communication. The standard
requires that LCA data used externally must follow aninternationally-recognized LCA standard, must include
a quantitative uncertainty determination, and must haveundergone independent internal and third party review.

G4

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SD EN PR

178 | 3M 2017 Sustainability Report

G4

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What We Create | Innovation Management

Potential Hazard
Communication andComposition Disclosure Policy
3M is committed to compliance with all applicable laws and regulations in the conduct of our
2-3
business activities, including the environmental,
health, safety, and regulatory requirements for hazard
communication. 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 these hazards
include safety data sheets, product labels, product literature, transportation classification documentation, andother communications tools. Per 3M policy, eachbusiness unit must evaluate the potential hazards of 3M
materials and transmit, in local country language(s),information about the hazards to employees, contractors, and customers, to meet all regulatory requirements
and 3M standards and guidelines, and to promote
informed decisions about the materials’ proper and safe
handling, use, and disposal. 3M Safety Data Sheets
inform stakeholders of the product chemical components in compliance with all applicable regulatory
requirements and 3M standards and guidelines.
G4

PR

Advertising and ProductRepresentation Policy
It’s our policy to represent our products truthfully, fairly and accurately in all sales,
3, 6
advertising, packaging and promotional efforts.
Leadership of every 3M business unit is responsible forassuring appropriate review of advertising and claims
regarding respective business products and services. All
product claims must be substantiated and technicallyaccurate to the end user as specified by the Advertisingand Product Representation Policy. 3M’s Environmental
Marketing Claims Support Team assists businesses inthe substantiation of environmental product claims andis comprised of laboratory scientists, legal staff, life
cycle management professionals and others with environmental marketing and business expertise.
G4PR

3M 15% culture supports
individual initiative
How does 3M produce a seemingly infinite stream of
new technologies that improve lives? It starts with theway we innovate. And no one has shaped our innovation
culture more than William McKnight.
McKnight was hired by 3M in 1907, as an assistant bookkeeper. He rose through the ranks to become president
and chairman, ultimately serving until 1966. That’s six
decades of reinforcing what we call the “McKnight
Principles.” They boil down to this:"As our business grows, it becomes increasingly
necessary to delegate responsibility and toencourage men and women to exercise their initiative. This requires considerable tolerance. Thosemen and women, to whom we delegate authority
and responsibility, if they are good people, aregoing to want to do their jobs in their own way.
"Mistakes will be made. But if a person is essentially right, the mistakes he or she makes are notas serious in the long run as the mistakes management will make if it undertakes to tell those inauthority exactly how they must do their jobs.

Deliver efficient growth
By leveraging strategic partnerships with several stakeholders internally and externally, 3M is able to transformdiverse ideas and creativity into superior technologies,
business assets, and innovative product platforms.
Our New Technology Introduction (NTI) framework
helps us manage the design and development of a newtechnology which may be used in several different new
products.
Meanwhile, our seven-phase New Product Introduction(NPI) process provides the robust framework for developing products from idea to launch.

"Management that is destructively critical when
mistakes are made kills initiative.”
At 3M, we have the freedom to take risks, and learn
from our mistakes. That freedom is essential to scientificdiscovery. It’s also what inspired McKnight to create
3M’s 15% culture, an environment in which people would
have the freedom to spend 15% of their time on projects
that interest them. Still in use today, the 15% culture
allows scientists to take time to work on new ideas thatmight eventually become successful new 3M products.

Our Actions
Collaboration
One of many things that makes 3M a singular company
is our commitment to collaboration. There are no silos
here. We collaborate with each other. Across businesses.
Across technologies. Across oceans and continents.

180 | 3M 2017 Sustainability Report

Case in point: the 3M Tech Forum, a self-directed andself-organized catalyst for the 10,000-plus people
in 3M’s technical community. Begun more than 60
years ago, the Tech Forum gives 3M researchers theopportunity to compare notes with global colleagues,
collaborate around the company’s 46 technology
platforms and develop new ideas that fuel the 3M
innovation pipeline. The collaborating takes place at anannual global event, spring symposiums, recognition
programs and many local events held throughout
the year.

Together, 3M’s NTI and NPI processes provide acommon framework for technology and productcommercialization for all global business. Information
required at every step, or gate, in the process, varies
with the inherent detail needed for deliverable tasks.
Having consistent practices throughout the company fortechnology and product creation assists in risk analysis
by providing a common language from which to sharetools and best practices and manage project portfolios.

Life Cycle Management
Life cycle management (LCM) is 3M’s approach toassuring that EHS and associated regulatory considerations are integrated into the development andcommercialization of 3M products through 3M’s NPI
process. This includes consideration of EHS aspects ofproduct design, formulation, manufacture, marketing,sales, use and disposal.

Product StewardshipResponsibility for product stewardship at 3M isshared across a broad spectrum of functions
1
positioned within businesses, regions, andcorporate staff groups. Together, individuals across thisG4

PR

NTI Framework
Identify
the market
opportunity

Identify
superior productconcepts to meetcustomer needs

Developthe technicalsolution

ExploreQualify

DeployCommercialize
Post-LaunchManage changes

CreateMake

LaunchIdea

Concept

Feasibility

Develop

Scale Up

Identify
the market
opportunity

Identify
superior productconcepts to meetcustomer needs

Developthe technicalsolution

Optimize productand test customer
acceptancePrepare for launch

ExecuteNPI Framework#improvinglives | 181

What We Create | Innovation Management

Life Cycle Assessments (LCA)

Life Cycle Management
Research &Development
Raw Materials
Acquisition

Manufacturing& Production

Disposal
Recycling

Distribution &Transportation
Protect Use& Reusespectrum work to support 3M's core value of respect forour social and physical environment.
Product Responsibility Liaisons (PRLs) or ProductStewards, embedded within 3M businesses and countriesof operation, act as champions of EHS, Regulatory andSustainability claims. They help assure our products meetor exceed requirements stemming from 3M policies,
governmental regulations and from our customers.
In 2016, 3M expanded a pilot program begun in 2015, tofurther enhance the extent to which our new products
improve lives in socio-environmental terms. This programeducates cross-functional teams on how to think about
improving the Sustainability attributes and applications of
products from before a new idea even gets drawn out on
paper all the way through the finalization of the manufacturing scale-up and product launch. This builds on our
long-standing LCM process to further integrate Sustainability into the core of who we are at 3M.
3M employees have made it clear they value Sustainability
in product development. In a global employee survey
conducted in 2013, they ranked sustainable product­development as the top Sustainability-related priority.

In addition to the LCM program which applies to all 3M
products, we also complete ISO 14040-compliant LCAs
for select 3M products. At 3M, we primarily complete
cradle-to-gate LCAs, since the majority of our products
have use and disposal life cycle stages that are difficult
to characterize. We also complete cradle-to-gate LCAs
for a number of internally-produced chemicals that areused in manufacturing of 3M products. While it is notpossible to complete full LCAs for all 55,000-plus unique
3M products, evaluation of these intermediates allows us
to have a better understanding of the potential environmental impacts of key components and processes.

Global certification of our Life
Cycle Assessment process
In 2016, 3M LCA teams in the U.S. and Europe renewed
their process certifications from The International EPD®
System to demonstrate that appropriate procedures
are in place to produce scientifically-sound, technically-defensible LCAs and EPDs (Environmental ProductDeclarations). Rather than conduct independent thirdparty reviews for each individual product LCA or EPD, theteams will continue to undergo an annual recertification
process which evaluates conformance of the underlying
management system with the program rules and ISO
standards. This global certification of the LCA process for
multiple parts of our organization is thought to be the firstof its kind. It streamlines our processes and reduces timeand cost, which enables us to complete LCAs for a larger
portion of our diverse product portfolio.

Looking forward...

#improvinglives means enabling a connectedworld from energy and the grid to communications
and electronics.
We are dedicated to creating products that improve not just the electronics we have today,
but our ability to innovate and advance the technology of tomorrow. From efficient electronic
devices, to dependable telecommunications networks, and ensuring reliable sources of power.

We are evolving our technology platforms for thechanging and anticipated needs of high-growth markets,and are augmenting our material science expertise withdigital where appropriate. These efforts are focused on
two different pathways: (1) enhancing our existing material
products with digital to make them smart, connected andmore useful for our customers; and (2) delivering softwareand digital solutions that improve workflow productivity
and create value based on our in-depth knowledge of ourcustomers’ processes.

Electronics & Energy
182 | 3M 2017 Sustainability Report#improvinglives | 183

What We Create | Our Products

G4

SD

4, 8

Our Products
3M serves customers throughfive business groups, which
increases speed and efficiency
by sharing technology,
manufacturing, marketingand other resources across all
business groups.

$30.1 billion sales
Consumer
Making life easier andmore productive at home
and work
Supplying an array of innovative products thatkeep homes cleaner, offices organized andbuildings well‑maintained, our consumer businessis home to some of our most iconic brands andwell-known products, including Post-it,® Scotch,®
Scotch-Brite,® Filtrete,™ O-Cel-O,™ Nexcare,™
and Command.™

$4.48 billion sales
184 | 3M 2017 Sustainability Report#improvinglives | 185

What We Create | Our ProductsElectronics & Energy
Advancing a connected world
by contributing to power,
communications and electronics.

From purification toaerospace: changing how
industry works

We turn 3M technology into difference-making
solutions for customers in electronics and energy
markets around the world. We contribute toreliable sources of power, enhanced-performanceelectronic devices, and speedy and dependable
telecommunications networks. We’re also improving
efficiency in renewable energy generation. And
our automotive electrification components are
instrumental in making the connected car a reality.

We provide thousands of innovative products
including tapes, abrasives, adhesives, specialty
materials and filtration systems to dozens ofdiverse markets—from aerospace and automotive
to purification and construction to generalmanufacturing. All, with a transformed approach
to customer engagement.

$4.83 billion sales$10.3 billion sales

Health Care

186 | 3M 2017 Sustainability ReportIndustrial

Safety & Graphics
From preventing infections
to making smiles brighter andfood safer

From protecting people andinformation to adding impact tocommunication

Supplying innovative and reliable products that help
health care professionals improve the quality andefficiency of care, we are a global leader in medical
and oral care products, and drug delivery and healthinformation systems. We are also bringing enhanced
contaminant screening technology to the foodsafety table.

Our products — personal protective equipment,
safety and security products, track and trace
solutions and more — increase the safety, security
and productivity of people, locations and systems
around the world. Also, we inspire creative
communication and design with a broad portfolioof graphic solutions that enhance visual impact.

$5.53 billion sales$5.66 billion sales#improvinglives | 187

About Report |About
Report188 | 3M 2017 Sustainability Report

Report Scope and Boundaries

190

GRI Index and UNGC

194

Assurance Statement

206

Metric Tables212#improvinglives | 189

About Report | Report Scope and Boundaries

Report Scopeand Boundaries
Report Schedule and Period
Current Issue: May 9, 2017
Next Issue: Scheduled for May 2018
Previous Issue: May 10, 2016
Prior to 2010, 3M’s Sustainability Report was a fully
integrated website. Therefore, copies prior to 2010 are
not available.
This report provides a summary of the activities in fiscal
year 2016 (January 1, 2016, to December 31, 2016).

Organizational Boundaries
This report covers 3M’s owned manufacturing facilities
and leased facilities worldwide, including joint ventures(if greater than 50 percent 3M ownership) and partiallyowned subsidiaries (if greater than 50 percent 3M
ownership) where 3M has full operational control.
Acquisitions are included in data sets once legally owned

190 | 3M 2017 Sustainability Reportand fully integrated onto 3M systems. All data includedin the report is global data unless otherwise specified.
Any significant organization changes are identified in the
Annual Report 2016 and 2017 Notice of Annual Meeting& Proxy Statement.

Data Collection, Adjustments
and Verification
The data provided in this report through facts andfigures is based on activities during 3M’s fiscal year
2016. For some performance indicators, the previous
year’s data is provided to allow for annual comparisons.

Report Data Collection
Due to the size and geographical extent of our operations, it is at times difficult to obtain all data points.
Therefore, to the extent possible, limitations and#improvinglives | 191

About Report | Report Scope and Boundaries

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

•

•

•

Financial Data: Financial information referenced
in this report is collected and reported inaccordance with the United States Securities
and Exchange Commission through the Annual
Report 2016.
Environmental, Health and Safety (EHS) Data:
The EHS data in this report is related to release to
the environment, safety performance, management systems implementation and regulatorycompliance. Data collection systems are inplace at applicable sites to track and collectenvironmental, health and safety data throughthe corporate-wide EHS reporting systems (e.g.,
Environmental Targets Database, Worldwide
Incident Management System, etc.).
Social Data: The data related to employee
metrics, metrics, social practices, and community
programs has been derived from various
databases from within the Human Resourcesand 3Mgives organizations. This data has beenreviewed and verified by the departments
responsible for maintaining the internal reporting
systems.
Responsible Sourcing Systems and Data: The
policies and management systems implementation in this area has been reviewed and verified
by the departments responsible for maintaining
the internal reporting systems

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

Base Year and Other
Adjustments
3M’s Annual Report 2016 and Investor Relations website
document any changes to financial data. Several of 3M’s
environmental goals are normalized per net sales. 3M
does not adjust sales data for inflation.
3M generally does not adjust its base-year environmental metrics data to reflect changes in 3M’sorganizational structure. As a result, 3M sets environmental targets that are normalized or indexed to
production (tons emitted or net sales) to assure the environmental progress we report publically is not unduly
influenced by changes to our organizational structure.
However, in the case of our greenhouse gas emissions
data, 3M follows the World Resource Institute and World
Business Council for Sustainable Development GHG
Protocol. Consequently, we readjust our greenhouse gas
emissions base-year data in the case of business acquisitions and divestitures.
In every case, 3M adjusts base-year and other years’
data if data collection methods change or data errors are
identified. Any significant changes in the measurement
methods and/or data values applied to key environmental metrics from previous years are documented
within the report. Significant changes are defined by
3M’s Sustainability Report as changes greater than five
percent of the original data point.
Reporting year 2015 total propane values reflectedin this report are 15.4 percent lower than previously
reported in our 2016 Sustainability Report. This change
is due to a data error being identified during an internal
audit due to a facility using incorrect conversion factor
when inputting data into the Corporate system.
Between 2005 and 2010, 3M adopted a holistic definition of waste to drive the company’s waste reduction
efforts toward more sustainable solutions, such aspollution prevention. 3M’s waste reduction goal andprogress during this period included recycling. In 2011,
3M returned to a more conventional definition of wastethat considered recycling as neutral (contributing neither
toward total waste nor toward good output).
3M’s 2025 goal program utilizes 2015 as the base-year.
Starting with this program, waste disposed and waste
by disposal type does not include waste-to-energy.
Total hazardous and total non-hazardous includes
waste-to-energy.

192 | 3M 2017 Sustainability Report

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

Accuracy and completeness of data•

Reliability of systems used to measure and record
data•

Reliability of ratios compiled from underlying data•

Adherence to the GRI G4 Reporting Guidelines•

Implementation of internal policies and related
management systems as reported•

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

Third-Party Verification: Bureau Veritas [“Assurance
Provider”] provided independent third-party assurance
for this report covering activities January 1, 2016 to
December 31, 2016. Bureau Veritas provided moderatelevel of assurance in accordance with AA100AS-2008,
Type 2. Bureau Veritas’ assurance letter can be found in
the report under Assurance Statement.

Global Principles andGuidelines
Global Reporting Initiative
The Global Reporting Initiative (GRI) is a network-basedorganization that includes representatives from business,government, labor, third-party advocacy groups andacademia. The GRI organization has developed aframework for sustainability reporting. Following the GRI
Sustainability framework advances two important objectives: transparency and the ability to compare resultsfrom one organization to another. 3M has developed thisreport using GRI G4 Guidelines. The following GRI index
outlines where specific GRI reporting elements andindicators are addressed in the report or other reporting
sources including the Annual Report 2016, 2017 Noticeof Annual Meeting & Proxy or other noted sources on
3M’s Investor Relations website.

education and development. 3M self-declares the 2017
report as “In Accordance-Core.”

United Nations Global Compact
Communication on Progress
The UN Global Compact is a strategic policy initiative
for businesses that are committed to aligning theiroperations and strategies with 10 universally accepted
principles in the areas of human rights, labor, environment and anti-corruption. 3M committed to the UN
Global Compact principles in early 2014. This report
includes an index of our Communication on Progress
implementing the 10 principles as well as alignment with
the UN 2030 Sustainable Development Goals (SDGs)
within the content of this 2017 Sustainability Report.

Global Reporting Initiative Reporting
Guidelines
3M has developed this report using the Global Reporting
Initiatives’ G4 Guidelines. The GRI Index table outlines
where specific GRI reporting elements and indicators
are addressed in the report.

UN Global Compact Principles and UN
2030 Sustainable Development Goals
Refer to the GRI Index table for cross-references ofcontent in this report with the 10 Principles of the UN
Global Compact, as well as alignment with the UN 2030
Sustainable Development Goals (SDGs).

Contact 3M
It is through collaboration and partnerships that
3M can accelerate Sustainability in our company toimprove every life. You can contact 3M Sustainabilityat ­Sustainability@mmm.com.

Our material aspects are identified in the GRI Index andreflected in our 2025 goals with focus on raw materials,
water, climate and energy, health and safety and#improvinglives | 193

About Report | GRI Index

SD General Standard Disclosure
GRI
Element

Global Reporting Initiative (GRI) Content Index
and UN Global Compact Report on ProgressStandard
DisclosureEC
EconomicEN

HR

Environment

Human Rights

LA
Labor
Practices

G4-1

Statement from the most senior decision-makerof the organization

Message from our CEO

7

G4-2

Description of key impacts, risks andopportunities

Message from our CEO
Global Challenges
Materiality

7
38
40

PR
Product
Responsibility

SO
Society

G4-3

Name of organization

3M Company

50

G4-4

Primary brands, products, and services

Our Products
Annual Report, 10-K, pages 4-7

168

G4-5

Location of the organization’s headquarters

3M Company
3M Center
St. Paul, Minnesota, United States

50

G4-6

Number of countries operating in, and countries
with significant operations

70-plus50

G4-7Nature of ownership and legal form

Annual Report, 10-K, page 4G4-8

Markets served

Our Products
Annual Report, 10-K, pages 4-7

168

G4-9

Scale of organization

Employee Programs
Sustainability Metric Tables
Annual Report, 10-K, pages 4-7

110
212

G4-10

Total number of employees

91,600GRI
Connections
Disclosure to UN
Level
Initiatives*

Corporate Code of Conduct
Annual Report, 10-K, page 10

Corporate Code of Conduct
Employee Programs
Health and Safety
Sustainability Metric Tables
Annual Report, 10-K, page 4
G4-11

194 | 3M 2017 Sustainability Report

Page
(PDF)

Organization Profile

GRI Index
SD

Description

Cross-Reference (Hyperlinks)
or Direct Answer

90
110
120
212

Percentage of employees covered by collective
bargaining

29 percent
Human Rights

98

G4-12

Description of supply chain

Suppliers

158

G4-13

Significant changes in organization during
reporting period

Annual Report, 10-K, pages 71-75

G4-14

Precautionary approach

Global Challenges
Environmental Management
Innovation Management

UNGC
Principle 6
SDG 8

UNGC
Principle 6
SDG 8

38
128
178

#improvinglives | 195

About Report | GRI Index
GRI
Element

Page
(PDF)

GRI
Connections
Disclosure to UN
Level
Initiatives*

Description

G4-15

External sustainability charters, principles or
initiatives

Stakeholders
Human Rights

66
98

Governance

G4-16

List memberships of associations andorganizations

Stakeholders

66

G4-34

Governance structure

Corporate Governance

80

G4-35

Delegation of authority for sustainability topics

Corporate Governance

80

G4-36

Executive level position for sustainability topics

Corporate Governance

80

G4-37

Process for stakeholder feedback to highest
governance body

Corporate Governance80

SDG 16

G4-38

Composition of board

Corporate Governance
3M Board of Directors
3M Committee Composition80

SDG 5, 16

G4-39

Chair is executive officer

Inge G. Thulin, Chairman of the Board andChief Executive Officer

7

SDG 16

Identified Material Aspects and Boundaries
G4-17

Entities in consolidated financial statement

Annual Report, 10-K, pages 4-10 and 71-75

G4-18

Process for defining the report content and
Aspect Boundaries

Materiality

G4-19

Material Aspects

Materiality

40

G4-20

Aspect boundary within

Materiality

40

G4-21

Aspect boundary outside

Materiality

40

G4-22

Effect of restatement of information

About Report

188

G4-23

Report significant changes in the Scope andAspect Boundaries

No significant changes to applicable
operational boundaries, scope or measurement
methodology.

GRI
Element

Description

Cross-Reference (Hyperlinks)
or Direct Answer

40

G4-40

Nomination and selection process for board

Corporate Governance80

Corporate Governance80

SDG 5, 16

SDG 16

3M Company Board of Directors
Nominating and GovernanceCommittee Charter

Stakeholder Engagement
G4-24

List of stakeholders engaged

Stakeholders

66

G4-25

Basis for stakeholder identification

Stakeholders

66

G4-26

Approach to stakeholder engagement

Stakeholders

66

G4-27

Key topics of concern raised by stakeholders

Materiality

40

Report Profile
G4-28

Reporting period

About Report

188

G4-29

Date of most previous report

About Report

188

G4-41

Conflicts of interest avoidance for board

Corporate Governance

80

G4-42

Governance body’s role in development ofvalues, mission statement, etc.

Corporate Governance

80

G4-43

Measures to improve board’s understanding ofsustainability impacts

Corporate Governance

80

G4-44

Evaluation of board with respect to sustainability
impacts

Corporate Governance

80

G4-45

Board’s role in identification and managementof sustainability risks

Corporate Governance

80

G4-46

Board’s role in reviewing organization's risk
management for sustainability risks

Corporate GovernanceEnterprise Risk

80
86

G4-47

Frequency of the board’s review of sustainability
risks

Corporate Governance

80

G4-48

Highest governing body’s role in reviewing reportand material aspects.

Corporate Governance

80

G4-49

Process for communicating critical concerns toboard

Corporate Governance

80

G4-30

Reporting cycle

About Report

188

G4-31

Contact point for questions

About Report

188

G4-32

In accordance option

About Report

188

G4-50

Nature and number of concerns reported toboardThis information is considered Business
Confidential.

G4-33

External assurance for report

About Report
External Assurance Statement

188
206

G4-51

Remuneration policy for board

Compensation

196 | 3M 2017 Sustainability Report

Page
(PDF)

GRI
Connections
Disclosure to UN
Level
Initiatives*

Cross-Reference (Hyperlinks)
or Direct Answer

SDG 16106#improvinglives | 197

About Report | GRI Index
GRI
Element

Description

Cross-Reference (Hyperlinks)
or Direct Answer

Page
(PDF)

G4-52

Process for determining remuneration of board

Compensation

106

G4-53

Stakeholders’ views sought for board
remuneration policies

Compensation2017 Proxy

106

G4-54

Ratio of annual compensation for highest paid
individual versus median

The ratio of CEO pay to other positions is not alabor indicator currently tracked and disclosed.
Our practice is to set pay targets at all levels,from the CEO on down, based on competitive
external market data.

G4-55

Percentage increase of compensation for highest
paid individual

The ratio of CEO pay to other positions is not alabor indicator currently tracked and disclosed.
Our practice is to set pay targets at all levels,from the CEO on down, based on competitive
external market data.

G4-56

Organization’s values, principles and standards

Corporate Code of Conduct

GRI
Connections
Disclosure to UN
Level
Initiatives*

SDG 1690

UNGC
Principle 10
SDG 16

Mechanisms for seeking advice on organizational
integrity

Corporate Code of Conduct

90

UNGC
Principle 10
SDG 16

G4-58

Mechanisms for reporting concerns about
unethical behavior

Corporate Code of Conduct

90

UNGC
Principle 10
SDG 16EC Economic
Description

Cross-Reference (Hyperlinks)
or Direct Answer

Page
(PDF)

Direct economic value generated and distributed2016 Metrics
3M Interactive Analyst Center212

SDG 2, 5, 7,
8, 9

G4-EC2Financial risks due to climate change

Climate Change and Energy
Annual Report, 10-K, pages 10-11

146

SDG 13G4-EC3Coverage of benefits plan obligations

Employee Programs
Annual Report, 10K, pages 89-100

110

G4-EC5G4-EC6

Financial assistance received from government

3M does not receive significant financial
assistance from the government. For some
information about tax holidays and the U.S.
research and development credit, refer toNote 8, Income Taxes, in Annual Report, 10-K,
pages 81 to 85.

Ratio of entry level wage by gender compared to
local minimum wage

3M sets and administers compensation basedon external market competitiveness without
regard to gender

Proportion of senior management hired fromlocal community

This information is considered Business
Confidential.

198 | 3M 2017 Sustainability Report

Page
(PDF)

GRI
Connections
Disclosure to UN
Level
Initiatives*

G4-EC7Development and impact of infrastructure
investments

Communities

58

SDG 2, 5, 7, 9

G4-EC8Significant indirect economic impacts, including
extentCommunities

58

SDG 8, 10, 17

G4-EC9Proportion of spending on local suppliers

Supplier spend by location is consideredBusiness Confidential

SDG 12

Cross-Reference (Hyperlinks)
or Direct Answer

Page
(PDF)

GRI
Connections
Disclosure to UN
Level
Initiatives*

GRI
Element

Description

G4-EN1

Materials used by weight and volume

Due to the diversity and complexity of
manufacturing of 3M’s products andassociated materials portfolio, this data is notcollected (by weight/volume) and aggregatedto the extent it would indicate relevance at a
corporate level.

G4-EN2

Percentage of materials used that are recycled
input materials

Due to the diversity and complexity of
manufacturing of 3M’s products andassociated materials portfolio, this data is notcollected (percent of recycled materials) andaggregated to the extent it would indicate
relevance at a corporate level.

G4-EN3

Energy consumption within the organization

Climate and Energy
2016 Metrics

146
212

UNGC
Principle 7, 8
SDG 7, 8, 12,
13

G4-EN4

Energy consumption outside of the organization

Climate and Energy
2016 Metrics

146
212

UNGC
Principle 8
SDG 7, 8, 12,
13

G4-EN5

Energy intensity

Climate and Energy
2016 Metrics

146
212

UNGC
Principle 8
SDG 7, 8, 12,
13

G4-EN6

Reduction of energy consumption

Climate and Energy
2016 Metrics

146
212

UNGC
Principle 8
SDG 7, 8, 12,
13

G4-EN7

Reductions in energy requirements of products
and services

Climate and Energy
Product Carbon Footprint Standard

147

UNGC
Principle 8, 9
SDG 7, 8, 11,
12, 13

G4-EN8

Total water withdrawal by source

Water
2016 Metrics

142
212

UNGC
Principle 7, 8
SDG 6

GRI
Connections
Disclosure to UN
Level
Initiatives*

G4-EC1

G4-EC4

Description

Cross-Reference (Hyperlinks)
or Direct Answer

EN Environment

G4-57

GRI
Element

GRI
Element#improvinglives | 199

About Report | GRI Index
GRI
Element
G4-EN9GRI
Connections
Disclosure to UN
Level
Initiatives*

Description

Cross-Reference (Hyperlinks)
or Direct Answer

Page
(PDF)

Water sources significant affected by withdrawal

Water

142

UNGC
Principle 8
SDG 6

G4-EN10 Percentage and total volume of water recycled
and reused

Water

142

UNGC
Principle 8
SDG 6, 8, 12

G4-EN11

Operational sites near protected or highbiodiversity areas

Water

G4-EN12Significant impacts on biodiversity

Environmental Management
Water

GRI
Element

Description

142

G4-EN23 Total weight of waste by type anddisposal method

Raw Materials
2016 Metrics

134
212

UNGC
Principle 8
SDG 3, 6, 12

128
142

G4-EN24 Total number and volume of significant spills

Environmental Management
3M did not have any significant spills in 2016that met the GRI definition of reportable in theorganizations financial report (due to resulting
liabilities).

128

UNGC
Principle 8
SDG 3, 6, 12,
14

G4-EN25 Weight of hazardous waste

2016 Metrics
The 3M Business Conduct requirements andthe Environmental Policy require compliancewith all applicable jurisdictional laws andregulations, including those on hazardous
waste transportation.

212

G4-EN26 Water bodies affected by organization’s water
discharges

3M conducts environmental assessments of
our operational sites, whereby biodiverse areas
may be identified. Where applicable, a public
database search is completed, which includes
a wetland database. Site visits also identify
rivers, creeks, potential wetlands, etc. that are
on or near the facility being assessed.

G4-EN27 Mitigation of environmental impacts of products

Innovation Management

Habitats protected

Communities
Environmental Management
Supply Chain

58
128
158

G4-EN14

Endangered species habitats near
operational sites

Water
3M conducts environmental assessments of
our operational sites, whereby biodiverse areas
may be identified. Where applicable, a public
database search is completed, which includes
a wetland database. Site visits also identify
rivers, creeks, potential wetlands, etc that are
on or near the facility being assessed.

142

Climate and Energy
2016 Metrics

146
212

G4-EN16

G4-EN17

Energy indirect GHG emissions

Other indirect GHG emissions

Climate and Energy
2016 Metrics

GRI
Connections
Disclosure to UN
Level
Initiatives*

3M 2025 water goals are focused on water
conservation and community engagement.
The 3M Business Conduct requirements andthe Environmental Policy require compliancewith all applicable jurisdictional laws andregulations, including those on water
discharge.

G4-EN13

Direct GHG emissions

Page
(PDF)

G4-EN22 Total water discharged by quality and destination

Significant impacts on biodiversity would be
discussed in our Annual Report, 10-K

G4-EN15

Cross-Reference (Hyperlinks)
or Direct Answer

146
212

UNGC
Principle 8

UNGC
Principle 7, 8
SDG 3, 12, 13,
14, 15
UNGC
Principle 7, 8
SDG 3, 12, 13,
14, 15178

UNGC
Principle 7, 8,
9 SDG 6, 8, 12,
13, 14, 15

3M Product Safety, Quality, and Stewardship
Principle
G4-EN28 Percentage of products and packaging materials
that are reclaimed

Raw Materials

134

UNGC
Principle 8
SDG 8, 12

Climate and Energy
2016 Metrics

146
212

UNGC
Principle 7, 8
SDG 3, 12, 13,
14, 15

G4-EN29 Fines for non-compliance with environmental
regulation

Environmental Management
2016 Metrics

128
212

UNGC
Principle 8
SDG 8, 16
UNGC
Principle 8
SDG 11, 13

G4-EN18

GHG consumption intensity

Climate and Energy
2016 Metrics

146
212

UNGC
Principle 8
SDG 13, 14, 15

G4-EN30 Environmental impacts of transporting products
and members of workforce

Climate and Energy
2016 Metrics

146
212

G4-EN19

Reduction of GHG emissions

Climate and Energy
2016 Metrics

146
212

UNGC
Principle 8, 9
SDG 13, 14, 15

G4-EN31

Environmental Management

128

G4-EN20 Emissions of ozone depleting substances

Climate and Energy

146

UNGC
Principle 7, 8
SDG 3, 12

G4-EN32 Percentage of new suppliers screened using
environmental criteria

Suppliers

158

UNGC
Principle 8

G4-EN21

Climate and Energy

146

UNGC
Principle 7,
8 SDG 3, 12,
14, 15

G4-EN33 Negative environmental impacts in the supply
chain and actions taken

Suppliers

158

UNGC
Principle 8
SDG 15

G4-EN34 Number of grievances about environmental
impacts

This information is considered Business
Confidential.

NOx, SOx, and other significant air emissions

200 | 3M 2017 Sustainability Report

Total environmental protection expenditures andinvestments by type#improvinglives | 201

About Report | GRI Index

HR Human Rights
GRI
Element

Description

LA Labor Practices and Decent Work
Cross-Reference (Hyperlinks)
or Direct Answer

Page
(PDF)

GRI
Connections
Disclosure to UN
Level
Initiatives*

GRI
Element

Description

Cross-Reference (Hyperlinks)
or Direct Answer

Page
(PDF)

GRI
Connections
Disclosure to UN
Level
Initiatives*

G4-HR1

Investment agreements and contracts that
include human rights clauses

Corporate Code of Conduct
Investment agreements are subject to 3M
Business Conduct Policies and Guidelines

90

UNGC
Principle 2

G4-LA1

Employee hires and turn over

Employee Programs

110

UNGC
Principle 6
SDG 5, 8

G4-HR2

Employee training on human rights

Human Rights

98

UNGC
Principle 1

G4-LA2

Benefits provided to full-time employees

Employee Programs

110

SDG 8

G4-HR3

Incidents of discrimination and corrective action

This information is considered Business
Confidential.

G4-LA3Return to work and retention after parental leave

Employee Programs

110

UNGC
Principle 6
SDG 5, 8

G4-HR4

Operations and suppliers in which the right tofreedom of association may be violated

Corporate Code of Conduct
Human Rights
3M Supplier Responsibility Code

90
98

UNGC
Principle 3SDG 8

G4-LA4

Minimum notice periods regarding operationalchanges

Employee Programs

110

UNGC
Principle 3
SDG 8

G4-HR5

Operations and suppliers with risk of child labor

Corporate Code of Conduct
Human Rights
3M Supplier Responsibility Code

90
98

UNGC
Principle 5
SDG 8, 16

G4-LA5Workers represented by management-worker
health and safety committees

Health and Safety

120

SDG 8

G4-LA6
Operations and suppliers with risk of compulsory
labor

Corporate Code of Conduct
Human Rights
3M Supplier Responsibility Code

90
98

UNGC
Principle 4SDG 8Type and rates of injury, lost days, work-related
fatalities

Health and Safety
2016 Metrics

120
212

SDG 3, 8

G4-HR6

G4-LA7

Workers with high incidence or high risk of
diseases related to their work98

We are always taking steps to protect ourmost important asset – 3M employees. Ourinnovations are only possible with the minds,
talent and commitment of all of our employees
worldwide, so we put a lot of thought and effort
into keeping them safe and healthy. Our robust
Safety and Health Policy applies to all 3M
operations.

G4-LA8

Health and safety topics covered in agreementswith trade unions

This information is considered Business
Confidential.

G4-LA9Average hours of training per employee

Employee Programs

G4-HR7

Percentage of security personnel trained in theorganization’s human rights policies

Human Rights

G4-HR8

Indigenous rights violations

To the best of our knowledge, there were no
incidents reported to Compliance and BusinessConduct Department related to the rights ofIndigenous people in 2016.

G4-HR9UNGC
Principle 1
SDG 16
UNGC
Principle 1

Human Rights

98

UNGC
Principle 1

G4-HR10 Percentage of new suppliers screened using
human rights criteria

Suppliers

158

UNGC
Principle 2

G4-HR11

Negative human rights impacts in the supply
chain and actions taken

Suppliers

158

UNGC
Principle 2

G4-HR12

Number of grievances about human rights
impacts filed

This information is considered Business
Confidential.

Number and percentage of operations that havebeen assessed for human rights

202 | 3M 2017 Sustainability Report

SDG 3, 8110

UNGC
Principle 6
SDG 8

Although 3M tracks some training hours, it is
not consistent globally. 3M believes indicatorsthat align results of the people with successof the Company are direct indicators ofsuccessful development programs.
G4-LA10Programs for skills management and lifelong
learning

Employee Programs

110

SDG 8

G4-LA11Percentage of employees receiving regularperformance reviews

Employee Programs

110

UNGC
Principle 6
SDG 5, 8

G4-LA12

Employees by category for diversity indicators

Diversity and Inclusion
Employee Programs

70
110

UNGC
Principle 6
SDG 5, 8

G4-LA13

Remuneration of men to women by employee
category

3M sets and administers compensation basedon external market competitiveness without
regard to gender.

UNGC
Principle 6
SDG 8, 10#improvinglives | 203

About Report | GRI Index
GRI
Element

Description

Cross-Reference (Hyperlinks)
or Direct Answer

Page
(PDF)

GRI
Connections
Disclosure to UN
Level
Initiatives*

G4-LA14

Percentage of new suppliers screened using
labor practices criteria

Suppliers158

SDG 5, 8, 16

G4-LA15

Negative labor practices impacts in the supply
chain and actions taken

Suppliers158

SDG 8, 16

G4-LA16

Grievances about labor practices

This information is considered Business
Confidential.

SO Society
GRI
Element

Description

Cross-Reference (Hyperlinks)
or Direct Answer

Page
(PDF)

G4-PR1

Percentage of product categories for which
health and safety impacts are assessed/
improved

Innovation Management
3M Product Safety, Quality, and Stewardship
Principle

178

G4-PR2

Grievances about labor practices

Corporate Code of Conduct
Innovation Management
3M Product Safety, Quality, and Stewardship
Principle

90
178

G4-PR3

Organization’s procedures for product labelingCorporate Code of Conduct
Innovation Management
3M Product Safety, Quality, and Stewardship
Principle
Advertising and Product Representation
Principle

90
178

G4-PR4

Number of incidents for non-compliance withlabeling

Significant non-compliance with labeling would
be discussed in our Annual Report, 10-K

G4-PR5Results of customer satisfaction surveys

This information is considered Business
Confidential.

G4-PR6

Sale of banned or disputed products

Innovation Management
3M Product Safety, Quality, and Stewardship
Principle
Advertising and Product Representation
Principle

G4-PR7

Non-compliance concerning marketing
communications

SDG 12

SDG 16178

Significant non-compliance concerning market
communications would be discussed in our
Annual Report, 10-K

G4-PR8Substantiated complaints regarding breaches ofcustomer privacy

3M respects customers’ right to privacy: see
3M Global Internet Privacy Policy. Significant
non-compliance concerning substantiatedcomplaints regarding breaches of customer
privacy would be discussed in our Annual
Report, 10-K

G4-PR9Significant fines for non-compliance with
provision and use of productSignificant fines for non-compliance with
provision and use of product would be
discussed in our Annual Report, 10-K

204 | 3M 2017 Sustainability Report

GRI
Connections
Disclosure to UN
Level
Initiatives*

Description

Page
(PDF)

GRI
Connections
Disclosure to UN
Level
Initiatives*

G4-SO1

Percentage of operations with local community
engagement, etc

Communities

58

UNGC
Principle 1

G4-SO2

Operations with significant impact on local
communities

Environmental Management
Raw Materials
Water
Climate and Energy
Suppliers
Human Rights

128
134
142
146
158
98

UNGC
Principle 1

G4-SO3

Percentage of operations assessed for risks
related to corruption

Corporate Code of Conduct
Be Honest

90

UNGC
Principle 10
SDG 16

G4-SO4

Communications and training of anti-corruption
policies

Corporate Code of Conduct
Be Honest

90

UNGC
Principle 10
SDG 16

G4-SO5

Confirmed incidents of corruption and actions
taken

Corporate Code of Conduct

90

UNGC
Principle 10
SDG 16

G4-SO6

Value of political contributions by country andrecipient

Corporate Code of Conduct
Lobbying and Political Activities Principle
Political Activities and Issue Advocacy

90

UNGC
Principle 10
SDG 16

G4-SO7

Legal actions for anti-competitive behavior

Significant legal actions for anti-competitive
behavior, anti-trust and monopoly practices
would be discussed in our Annual Report, 10-K

G4-SO8

Monetary value of significant fines

Environmental Management Significant fines
would be discussed in our Annual Report, 10-K

G4-SO9Percentage of new suppliers screened for
impacts on society

Suppliers

PR Product Responsibility
GRI
Element

Cross-Reference (Hyperlinks)
or Direct Answer

158

G4-SO10 Negative impacts on society in the supply chain
and actions taken

This information is considered Business
Confidential.

G4-SO11This information is considered Business
Confidential.

Grievances about impacts on society

SDG 16Disclosure Levels
Full

Not Disclosed   *United Nations Global Compact Principles   *United Nations Sustainable Development Goals

SDG 16#improvinglives | 205

About Report | Assurance Statement

Assurance
Statement

INDEPEENDENT ASSURANA
NCE STATTEMENT
Intrroduction andaobjectives of worrk
Bureeau Veritas North
N
Americca, Inc. (Bureeau Veritas) was engage
ed by 3M Co
orporation (3M
M) to
cond
duct an inde
ependent assurance of its
i 2017 3M Sustainabiliity Report (tthe Report). This
Assu
urance State
ement applie
es to the related information include
ed within the scope of work
desccribed below
w. The intend
ded users of the assurancce statement are the sta
akeholders off 3M.
The overall aim of this proce
ess is to provvide assurance to 3M’s stakeholdersson the accuracy,
relia
ability and ob
bjectivity of th
he informatioon included inn the Reportt as describe
ed in the scop
pe ofworkk. The asssurance process also evaluated 3M’s
3manag
gement of sustainabilitty inacco
ordance withh the principle
es of inclusivvity, materialiity and respo
onsiveness.
The information that was asssured and itss presentatio
on in the Rep
port are the solesresponsibility
he managem
ment of 3M. Bureau
B
Verittas was not involved in th
he drafting of the Report. Our
of th
sole
e responsibilitty was to pro
ovide independent assura
ance on its content.
cSco
ope of workk
3M rrequested Bu
ureau Veritas to include in its indepen
ndent assura
ance the follo
owing:


Data inccluded in thee Report for the calendarr year 2016 reporting peeriod as show
wn in
the attacched Summaary of Assure
ed Informatioon;

Approprriateness and robustnesss of underlying reportin
ng systems and processses,
used to collect, analyyze and revie
ew the data subject to the assurance
e process; anndEvaluation of the ReportRin acccordance w
with the Assu
urance Stan
ndard AA10000AS(2008)1 Type 2 assurance.

Exclluded from th
he scope of ouro work is any
a assurancce of informa
ation relating to:Text or otherowritten statements associated withw the Repo
ort;

Activitiess outside thee defined asssurance perio
od; and

Financia
al data and data reporte
ed that is noot included in the Summ
mary of Asssured
Informattion.

Metthodology
Bureeau Veritas undertookuthee following activities:a
1. Interviews with relevant personnel of 3M (inncluding man
nagers and staffsmembe
ers atporate and site level);the corp
2. Review
w of internal anda external documentaryy evidence producedpby 3M;
3. Audit off performancce data pressented in thee Report including a detailed review of asample of data;
4. Visits to
t manufactturing sites located in Brownwoodd, Texas; Brookings,
B
S
South
Dakota; Menomoniee, Wisconsin; and Cumbeerland, Wisconsin;
5. Remotee data revie
ews for man
nufacturing sitesslocatedd in Nevadaa, Missouri; Little
Rock, Arkansas;AHiggashine, Jap
pan; and Tillo
oy, France;
6. Visit to 3M headqua
arters office located in Ma
aplewood, Minnesota;
M
an
nd
1

206 | 3M 2017 Sustainability ReportPub
blished by AcccountAbility: The
T Institute off Social and EthicalE
Accounntability

7. Review of 3M data and information systems for collection, aggregation, analysis andinternal verification and review.

C
Community involvement and giving
g is evidencced by imp
plementation of Stakeho
olderEEngagement Plans. 3M provides com
mmunity sup
pport throughh Visiting Wizards, and manymoother engage
ements in the
e community. Corporatelly, the 3M Fooundation provides funding toa variety of re
ecipients.

S
Systems for collectingcand compiling data appear to be succes
ssful for development of theR
Report, although some op
pportunities for
f improvem
ment were ob
bserved at th
he site level.

The work was planned and carried out to provide a moderate level of assurance and webelieve it provides a sound basis for our conclusions.

Our findings
On the basis of our methodology and the activities described above:Nothing has come to our attention to indicate that the reviewed information within thescope of our verification is not materially correct.



Nothing has come to our attention to indicate that the reviewed information is not afair representation of the actual environmental and health and safety data forcalendar year 2016.

It is our opinion that 3M has established appropriate systems for the collection,
aggregation and analysis of quantitative data, including energy use, direct andindirect GHG emissions, water consumption, waste quantities and disposition, injury
and illness rate, lost day rate, severity rate and number of environmental violations.

A summary of data within the scope of assurance for 2016 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.

Stattement of independeince, imparrtiality and competenceBure
eau Veritas is
i an indepe
endent professsional serviices compan
ny that speciializes in Qu
uality,Heaalth, Safety, Social andd Environme
ental manag
gement with over 180 years historry inprovviding indepe
endent assurrance service
es, and an annnual 2016 revenuerof 4..5 Billion Eurros.
No mmember of th
he assurance
e team has a business reelationship withw 3M, its Directors orMannagers beyonnd that of verrification andd assurance of sustainability data andd reporting. We
Whave
e conducted this verificattion independ
dently and we
w believe theere to have beenbno confflictof innterest. Bureeau Veritas has
h implemen
nted a Code of Ethics ac
cross the bussiness tomainntain high ethhical standarrds among staff in their day-to-daydbuusiness activvities.
The assurance teamt
has exxtensive expe
erience in co
onducting asssurance ove
er environme
ental,nd health an
nd safety info
ormation, sysstems and processes,pha
as over 20 years
ysocial, ethical anmbined experrience in thiss field and an
n excellent u
understanding
g of Bureau Veritas stan
ndard
com
meth
hodology forr the Assuran
nce of Sustaiinability Reports.

Attestation:

Inclusivity
Based on discussions with 3M, their processes appear to be inclusive of stakeholders. For
example, 3M commissioned a third party provider to update their materiality assessment in2016. In addition, 3M is active in community engagement that includes community
investment (3Mgives), youth development (TWIST, STEP, TECH), and humanitarian projects.
3M is working to increase the representation of women and other under-represented groups
in industry through STEM activities and internal management development.

John
n A. Rohde Le
ead Verifier

Trevor A.
A Donaghu, Te
echnical Revie
ewer

Senior Project Manager

Technica
al Director

nge Services
Susttainability and Climate Chan

Climate Change
C
Servicces

Materiality
3M commissioned a materiality assessment as described in their 2015 Sustainability Report.
The 2015 Sustainability Report explained the materiality assessment that considered theimportance of issues to both internal and external stakeholders. 3M began the process of
updating the materiality assessment during 2016. The initial work for the update has included
reviewing governance, scarce resources, greenhouse gas emissions, and health and safety.
ResponsivenessSome examples of how 3M responds to stakeholders regarding sustainability issues arethrough conference calls regarding the Sustainability Report, participation in investor calls,
completion of requests from customers, and responding to comments received through3M.com. In response to shareholder interest, 3M presented their sustainability report andgoals during the 2016 annual meeting. 3M has modified the reporting format to a new layout
to improve the reader’s experience.

Key Observations for 2016


3M’s commitment to continuous improvement in environmental performance was evident
from the continued development of and involvement in life cycle assessment
benchmarking, and resource reduction analysis for new 3M products with respect to waterand greenhouse gas emissions.



The commitment to decrease potential greenhouse gas emissions is shown through thecontinued improvements to air emission controls that specifically have decreased
emissions of high global warming potential compounds.

Bureau Ve
eritas Northh America, Inc.
Denver, Co
oloradoApril 5, 2017

Summary
Summaryof Summary
Assuredof Assured
Information
Summaryof Information
Assuredof Information
Assured Information
Reporting
ReportingYear
ReportingYear
20162016
ReportingYear 2016
Year 2016
3M Company
3M Company
3M Company
3M Company

MetricMetricMetricMetric
Metric RY‐2016
Metric
RY‐2016
RY‐2016altimeFull‐time
Equivalent
Total Global
Full‐time Equivalent
Total
Equivalent
GlobalFull‐time
Equivalent
Total NumberTotal NumberTotal Number
Total Number
91,60091,600
91,600t) (Headcount) (Headcount)alloyees
Employees
atEmployees
Total
Year‐End
GlobalatEmployees
TotalatGlobalYear‐EndYear‐End at Year‐End
Total NumberTotal NumberTotal Number
Total Number
92,50092,500
92,500t) (Headcount) (Headcount)

RY‐2016ber
Part‐Time
Employees
Total
Number
Part‐Time
Total Number
Employees
2,400
Number 2,400
rt‐Time
Total
Number
Employees
Part‐Time
Employees
Total
NumberTotal Number
2,400Total

2,400

TotalOilFuel#1,#6 OilTotal
Fuel
MMBTUsTotal Fuel
#1,Oil
#2,
Total
#6#2,
Fuel
#1, #2,#6Oil #1, #2, #6MMBTUs

ber
Full‐Time
Employees
Total
NumberFull‐Time
Total Employees
NumberTotal Number
Total
90,100
Number 90,100
ll‐Time
Total
Employees
NumberFull‐Time
Employees
Total
Number90,10090,100Total
Jet FuelTotal Jet FuelTotal Jet Fuel
Total JetFuel

MMBTUsMMBTUs34.8

34.8

Total PropaneTotal PropaneTotal Propane
Total Propane

MMBTUsMMBTUs27.8

27.8

Total Gasoline
and Gasoline
Diesel Total
MMBTUsTotal Gasoline
and Total
DieselandGasoline
Diesel and Diesel
MMBTUsemale
ofPercentage
FemaleEmployees
toEmployees
Totalof FemaletoEmployees
to Total
Employees
ofPercentage
Femaleto Total
Total
%
%
%
34.8 %34.8
Employees Employees
emale
ofPercentage
FemaleEmployees
inEmployees
of FemaleinEmployees in
Employees
ofPercentage
Femalein%%%
27.8 %27.8
ent
Positions Management
Positionssitions
Management
PositionsntalManagement
Environmental
System‐ Management
System ‐Management
Environmental
SystemManagement‐
System ‐MetricUnits
RY‐2016
MetricUnits Units
Units RY‐2016
RY‐2016berof Significant
SpillsNumber of
Significant Spills
Significant
Total
NumberSpillsTotalof
Significant
SpillsTotal NumberTotal Number
0 Number 0
Total Number
0 Totalinreporting)
10K
reporting)(Spills
reportedin 10K reporting)
nrted
10K
(Spills
reportedin 10K
reporting)

91,60092,500

EnergyEnergy‐ Metric‐ Metric
Energy ‐ Metric
Energy ‐ Metric

Summary of Summary
Assured Informationof Assured Information
Summary
SummaryofSummary
Summary
Assuredof AssuredofInformationofAssured
AssuredInformation
Information
Information
Summaryof
AssuredReportingYear
Reporting2016
Year2016 Information
Reporting
ReportingYear
Reporting
Reporting
Year
2016
2016
Year
Year2016
2016Year 2016
Reporting
3M Company
3M
Company
3M Company
3M Company
3M
3MCompany
Company
3M Company

Total Energy
Use
Energy Use (Absolute)
MMBTUsTotal Energy
Use (Absolute)
Total(Absolute)
Energy Total
Use (Absolute)
MMBTUsTotal Energy
Use
Energy Use (Absolute)
Total Energy
Use (Absolute)
Total(Absolute)
Energy Total
Use (Absolute)
MWh MWh

Total Coal
Total Coal

Total Coal

Total Coal

Total Natural
Gas NaturalTotal
Total Natural
Gas Total
Gas Natural Gas
RY‐20160Units UnitsMMBTUsMMBTUsMMBTUsMMBTUsTotal Electricity
Consumption
Total
Electricity Consumption
MMBTUsTotal Electricity
Consumption
Total
Electricity
Consumption
MMBTUsConsumption
Total Steam Consumption
MMBTUsTotal Steam
Total SteamConsumption
Total Steam Consumption
MMBTUsSupplier
Supplier
Responsibility
Supplier
Responsibility
Supplier
MetricResponsibility
Responsibility
MetricMetricMetric Metric
Units
Units
MetricMetricUnits
Units
RY‐2016
RY‐2016
RY‐2016
RY‐2016
SupplierMetricResponsibility
MetricMetricUnits
RY‐2016Units
RY‐2016
RY‐2016
UnitsMetric
RY‐2016
RY‐2016
MetricMetricMetric RY‐2016
RY‐2016
Total Global Full‐time
Total
Equivalent
Global Full‐time Equivalent
29,000,000
MMBTUsMMBTUs
29,000,000
29,000,000 29,000,000
Total Number
Total Number
91,60091,600 88,200(Headcount)(Headcount)
Total NumberofSuppliers
Total Number
Total
NumberofTotalSuppliers
Total
NumberNumberof TotalofSuppliers
Suppliers
Number
Total
Total
NumberNumberNumberTotalof Suppliers
Total
Number
88,20088,20088,20088,200Total Global Employees
TotalatGlobalYear‐End
Employees at Year‐End
8,490,000
MWh 8,490,000 8,490,000
MWh8,490,000
Total Number
Total Number
92,50092,500(Headcount)(Headcount)

Percentage of Female
Percentage
Employeesof Femaleto TotalEmployees to Total
190,000
MMBTUs190,000
MMBTUs190,000
190,000%
Employees
Employees
Percentage of Female
Percentage
Employeesof Femalein
Employees in
155,000
MMBTUs155,000
MMBTUs155,000
155,000%
Management Positions
Management Positions
MMBTUs00
Air Emissions‐ Metric
AirAirEmissions‐ Metric
Air Emissions‐Emissions
Metric ‐ Metric
Units
Air
EmissionsUnits‐ Metric
15,400,000
MMBTUsMMBTUs15,400,000
15,400,000 15,400,000

34.8

34.8

Total Propane

%

27.8

27.8

0
MMBTUs
0

Units
Units

RY‐2016
RY‐2016
RY‐2016 RY‐2016
Units

0

2 Market‐based
EmissionsAbsolute
Scope Absolute
2ScopeMarket‐based
Absolute
Scope
Emissions
2 Market‐based
Emissions
Scope
2AbsoluteMarket‐based
Emissions
Scope
2 Market‐based
Emissions
TotalAbsolute
Monetary
Value
Total
of
Monetary
Significant
Value
Fines
ofMetric
Significant
Million$USD
Fines
Million$USD
0CO2e01,780,000
Metric
Tons
CO2e
Tons
CO2e
MetricTons
1,780,000
MetricTons
CO2e
1,780,000
Metric1,780,000
Tons CO2e(Indirect)(Indirect)(Indirect)(Indirect)(Indirect)

berof Non‐Monetary
NumberSanctionsof Non‐Monetary
Total
NumberTotal
Sanctions
0 Number 0
Non‐Monetary
Total
NumberTotal
Sanctionsof Non‐Monetary
Total
NumberSanctions
Number0 Total0ntalability
Environmental
Liability
AccruedAccruedEnvironmental
at Liability
YearatEnd
Year
AccruedMillionEnd
Liability
Million
at$USDYear
Accrued$USD
End atMillionYear $USD
End
0 Million
0$USD 00Total Number of Non‐Monetary
Total NumberSanctionsof Non‐Monetary
Total Number
Sanctions Total Number00‐ Metric
Waste ‐ Metric
RY‐2016
Units RY‐2016
RY‐2016
WasteWaste‐ Metric
Waste ‐ Metric
Units Units
Units
RY‐2016
WasteWaste
Disposed:
Disposed:
Landfill,
Waste
Landfill,
Treatment
Disposed:
Treatment
Waste
Landfill,
andDisposed:
Incineration
andTreatment
Incineration
Landfill,andTreatment
Incineration
and Incineration
MetricMetricTons Tons Metric
160,000
Tons Metric
Environmental
160,000
Liability
Environmental
AccruedLiability
Year
End
$USD
Year2End
Million $USD00160,000
Tons
160,000
Absolute
1 and
2andMarket‐Absolute
Scope Absolute
1ScopeandAbsolute
Scope
Scope
2ScopeMarket‐
1at
Scope
2Million
Scope
1AbsoluteandScope
2Accrued
Market‐Scope
1Market‐and atScope
Market‐(Absolute)(Absolute) (Absolute) (Absolute)
Tons
CO2e
Metric MetricTons CO2e
MetricTons
CO2e5,920,000
5,920,000
MetricTons
CO2e5,920,000
Metric5,920,000
Tons CO2e
based Accounting(Indirect)
based Accounting(Indirect)
based
Accounting(Indirect)
based
Accounting(Indirect)
based
Accounting (Indirect)
Total Hazardous
Waste
Total
(Absolute)
Hazardous
Waste(Absolute)Tons Tons Metric
43,90043,900
Tons Metric 43,900
Total Hazardous
Waste(Absolute)
Total
Hazardous
WasteMetric(Absolute)
MetricTons

1.2

RY‐2016

Absolute
Scope Absolute
1ScopeEmissionsAbsolute
Scope(Direct)1(Direct)
Emissions
Metric(Direct)
Tons CO2e
MetricTons
CO2e4,140,000
4,140,000
Absolute
1 Emissions
Scope
1Absolute
Emissions(Direct)
MetricTons
Metric
CO2e
Tons
CO2e
4,140,000
1 Emissions
Metric 4,140,000
Tons CO2e
Environmental
Management
Environmental
SystemManagement‐ScopeSystem‐(Direct)
10,700,000
MMBTUsMMBTUs
10,700,000
10,700,000 10,700,000
MetricMetric
Units
Units RY‐2016
RY‐2016
Total Number of Significant
Total Number
Spills of Significant Spills
1,180,000
MMBTUsMMBTUs1,180,000
1,180,000 1,180,000
Total Number
Total Number00Absolute
2 Location‐based
EmissionsAbsolute
Scope Absolute
2ScopeLocation‐based
Absolute
Scope
Emissions
2 Location‐based
Emissions
Scope
2Absolute
Location‐based
Scope
2Emissions
Location‐based
Emissions(Spills
reportedin 10K(Spills
reporting)reportedin 10K
reporting)
Tons
CO2e
Metric MetricTons CO2e
MetricMetric
Tons
Tons
CO2e
CO2e
1,840,000
1,840,000
1,840,000
Metric1,840,000
Tons CO2e(Indirect)(Indirect)(Indirect)(Indirect)(Indirect)
Number of Significant
NumberFines of
(Fine
Significant
or penalty
Fines (Fine or penalty
Total Number
Total Number
00>$10,000)>$10,000)

etary
Value
of Significant
Total
Monetary
Fines
Value
Millionof
Significant$USD Million
Fines
0$USD 0Value
Totalof MonetarySignificant
Value
Fines
of
Significant
Million
$USD
Fines
$USD
0 Million

RY‐2016

Total Energy Use (Absolute)
Total Energy Use (Absolute)MWhMWh8,490,000
8,490,000
Sites locatedinlocated
Water
Stress/Scarce
Areas;
water
Sites locatedin Water
Sites
Sites
Stress/Scarcelocatedin
Water
inSites
Water
Areas;
Stress/ScarceStress/Scarce
water
Areas;
Areas;
water
water Areas; waterlocatedin WaterStress/Scarce
Totalsources
Fuel Oilsignificantly
#1,
#2,
Total
#6
Fuel
#1,
#2,
#6ofbywater
MMBTUsMMBTUs1,200,000
1,200,000
affected
byaffected
withdrawal
ofaffectedwatersourcessignificantly
sourcessources
affectedsignificantly
significantly
by Oilwithdrawal
affected
bywithdrawal
withdrawal
ofby
of
water
water
sourcessignificantly
withdrawalofwater
withconservationwater
conservation
planning
efforts
Totalefforts
Numberwith water
with
with
water
water
planning
conservationconservation
effortsplanning
planning
efforts
efforts
Total
Number
Total
Total
Numberwithwater
conservation
planning
25 Total
25Number
25Number25
25
Total Jet Fuel
Total Jet FuelMMBTUsMMBTUs159,000
159,000

%

0

0.304

Units Units Units
Units
RY‐2016
RY‐2016
RY‐2016
RY‐2016
Units
RY‐20
Units
Units
RY‐2016
RY‐2016
Million Million
Cubic Cubic
MillionMillionCubic
Cubic Million Cubic
Total Energy Use (Absolute)
Total Energy Use (Absolute)
MMBTUsMMBTUs
29,000,000
29,000,000
Total Use
Water
Use
(Absolute)
Total Water
Total(Absolute)
Total
Water
Water
Use
Use
(Absolute)(Absolute)
MetersMeters Meters
Meters
Total
Water Use (Absolute)
45.9 45.9 Meters
45.9
45.9
45.9

1,200,000
MMBTUs1,200,000
MMBTUs1,200,000
Total
1,200,000
Number Part‐Time
Total Number
Employees
Part‐TimeCumulative
Employees
TotalCumulative
NumberTotal Number
2,400
2,400
Numbersince
NumberCumulative
Cumulative
since
Numbersince
since Number
Cumulative
sinceTotal Numberof Number
Supplier
Reviews
2008 Reviews
Total NumberofTotalSupplier
Total
NumberReviews
of TotalofSupplier
Supplier
Reviews
Reviews
2008
2008
2008
Numberof Supplier
5,120 5,120
5,1202008
5,120
5,120
159,000
MMBTUs159,000
MMBTUs159,000
Total
159,000
Number Full‐Time
TotalEmployees
Number Full‐Time Employees
Total Number
Total Number
90,10090,100Significant
Fines
Number(Fine
orofpenaltySignificant(Fine or penalty
icant
NumberFines of
(Fine
Significant
or
penalty
Fines(Fine orFines
penalty
Total NumberTotal Number
0 Number 0
Total Number
0 Total>$10,000) >$10,000)

tySafety
MetricHealthMetricand Safety
HealthMetricand Safety
Units Metric
Units
Units RY‐2016
Units
RY‐2016
RY‐2016
Per 100
Per3M
100
Employees
3M Employees
Per 100 3M Employees
Per 100 3M Employees
Incident
Time
GlobalIncident
Rate
Lost Time
Rate
GlobalIncident
Lost Time
RateIncident Rate
0.304 0.304
0.304(200,000
work hours)
hours) work hours)(200,000work(200,000
hours) work
(200,000
Per3M
100
3M Employees
Per 100 3M Employees
Per 100
Employees
Per 100 3M Employees
ordableRateIncident
Recordable
e Incident
GlobalIncident
Recordable
RateGlobal
RateIncident Rate
1.2 1.2
1.2(200,000work(200,000
hours) work
(200,000(200,000
work hours)
hours) work hours)

Water ‐Water
Metric‐ Metric
Water
Water
‐ Metric‐ MetricWater ‐ Metric
Energy ‐ Metric Energy ‐ Metric

Total Propane

MMBTUsMMBTUs190,000

190,000

Total Gasoline and Total
DieselGasoline and Diesel

MMBTUsMMBTUs155,000

155,000

Total Coal

MMBTUsTotal Coal

Units 3Units
Air Emissions
Air Emissions‐ Greenhouse
AirAirEmissions‐Emissions
Greenhouse
Gas‐ Greenhouse‐ScopeGreenhouse
Gas
3Scope
Gas
Scope
Scope
3 3 Gas Scope
Air
Emissions‐3Gas
Greenhouse
Total Natural Gas Total Natural Gas
MMBTUs4,140,000

Category
1 ‐ Purchased
Goods
‐ and
Purchased
Services
Goods
Services
MetricTons
MetricTons
CO2eCategory
Category
1 Category‐ Purchased
1 ‐1Purchased
Goods
and
Goods
andandServices
Tons
Metric
CO2e
Tons
CO2e
Category
1Services‐ Purchased
GoodsMetricandCO2eServices
MetricTons
CO2e6,610,0
6,610,000
6,610,000
6,610
Total Electricity Consumption
Total Electricity Consumption
MMBTUsMMBTUs
10,700,000
10,700,000

1,840,000

Total Steam Consumption
Total Steam Consumption
MMBTUsMMBTUs1,180,000
1,180,000
Category
2 Category‐ Capital
Tons
CO2e
Category
2 ‐ CapitalCategory
Goods2 ‐Goods
2Capital‐ Capital
Goods
Goods
Metric MetricTons CO2e
MetricMetric
Tons
Tons
CO2e
CO2e
Category
2 ‐ Capital Goods
MetricTons
CO2e 538,0
538,000
538,000
538

1,780,000

Category
3and‐ FuelandEnergyRelatedMetricTons
CO2eCategory
3 ‐ FuelCategory
Category
EnergyRelated‐ FuelandActivities
EnergyRelatedMetricActivities
Tons
CO2e
MetricTons
CO2e
3 ‐3Fuel
andEnergyRelatedMetricTons
CO2eCategory
3 ‐Activities
FuelandActivities
EnergyRelatedActivities
MetricTons
CO2e 607,0
607,000
607,000
607

5,920,000

Waste ‐ Metric
Waste ‐ Metric
Units
Units
RY‐2016
RY‐2016
Waste Disposed: Landfill,
Waste Treatment
Disposed: Landfill,and Incineration
Treatment and Incineration
Metric Tons and Metric
160,000
Tons
160,000
Category
4 Category‐ Upstream
andCategory
4 ‐ Upstream
Transportation‐Transportation
UpstreamandTransportation
andCategory
4 ‐4Upstream
Transportation
andCategory
4 ‐ Upstream
Transportation(Absolute)(Absolute)
Tons
CO2e
Metric MetricTons CO2e
MetricTons
CO2eMetricTons
CO2eMetricTons
CO2e 699,0
699,000
699,000
699
Distribution
Distribution
Distribution Distribution
Distribution
Total Hazardous Waste
Total(Absolute)
Hazardous Waste (Absolute) Metric Tons

43,900Total Nonhazardous
Total
Waste
Nonhazardous(Absolute)
Waste (Absolute)
MetricTons Tons Metric
177,000
Tons Metric 177,000
Total Nonhazardous
Waste
Total
(Absolute)Nonhazardous
Waste(Absolute)
Metric177,000
Tons
177,000
Total3Scope
3 Emissions
MetricTons
CO2e
Total Scope
Emissions
Total
Scope
(Upstream)3(Upstream)
Emissions(Upstream)Tons(Upstream)
CO2eMetricTons
CO2e9,130,000
9,130,000
Total
Scope
3 Emissions(Upstream)
MetricTons
CO2e9,130,000
Total Scope
3Metric
Emissions
Metric 9,130,000
Tons CO2e
WasteWaste
by Disposal
by Disposal
Type,
WasteType,
Incineration
by Disposal
Incineration
WasteType,by Disposal
Incineration
Type,
MetricIncineration
MetricTons Tons Metric
44,40044,400
Tons Metric 44,400
Tons
44,400
Health and Safety Metric
Health and Safety Metric Units
Units RY‐2016
RY‐2016
Per 100 3M Employees
Per 100 3M Employees
by Disposal
Landfilled
WasteType,by Disposal
Type,
Landfilled
MetricTons Lost Time Incident
WasteWaste
by Disposal
Type,
WasteType,Landfilled
by Disposal
Landfilled
MetricTons Tons Metric Tons Metric
GlobalGlobal Rate
Lost Time Incident Rate
0.304
0.304
(200,000
work hours)(200,000 work hours)
116,000 Total116,000
116,000
116,000
Total Volatile
Organic
CompoundEmissions
Volatile
Organic
Total
CompoundVolatile
Organic
EmissionsCompoundEmissions
Total
Volatile
Organic
CompoundEmissions
Total
Volatile
Organic
CompoundEmissions
MetricMetricTons3MTons
Metric
Tons
4,630
4,630
MetricTons
Tons4,630 4,630
Per 100
EmployeesPer
100 3MMetric
Employees(Absolute)(Absolute)(Absolute) (Absolute)(Absolute)
Waste‐to‐Energy
Waste‐to‐Energy
Tons Recordable Incident
Waste‐to‐Energy
Waste‐to‐Energy
MetricMetricTons Tons Metric Tons Metric
GlobalGlobal Recordable
Rate
Incident Rate
1.2
1.2(200,000
work
hours)(200,000
work
hours)
61,00061,00061,000
61,000Total NumberTotal Number
1 Number 1
Total Number
1 TotaledWorkFatalities
‐ 3M
Work
Employees
Related
Fatalities‐ 3M Employees
talities‐ Related
3M Employees
Fatalities‐ 3M
Employees

1

Recycle& ReuseOnsiteRecycle & Reuse
Tons
56,500
OnsiteOnsite
Recycle& ReuseOnsiteRecycle& ReuseMetricMetricTons Tons Metric
56,50056,500
Tons Metric 56,500
Total Number
Work Related Fatalities
Work‐ Related
3M Employees
Fatalities ‐ 3M Employees

Total Number
1

1

Total Number
Total NumberTotal Number
0 Total0 Number 0
edWorkFatalities
‐ 3M
Work
Contractors
Related
Fatalities‐ 3M Contractors
talities‐ Related
3M Contractors
Fatalities‐ 3M
Contractors

0

OffsiteOffsite
ReuseReuseOffsite ReuseOffsite Reuse

Tons
29,300MetricMetricTons Tons Metric
29,30029,300
Tons Metric 29,300
Total Number
Work Related Fatalities
Work‐ Related
3M Contractors
Fatalities ‐ 3M Contractors

Total Number
00

Total NumberTotal Number
1 Number 1
Total Number
1 Totaltalities
edWorkFatalities‐ Related
Total‐ Number
Total
Work
Fatalities
NumberRelated‐ TotalFatalities
Number‐ Total Number

1

RecycleRecycleOffsite Recycle
OffsiteOffsite
Offsite Recycle

MetricMetricTons Tons Metric
136,000
136,000
Tons Metric 136,000
Tons
136,000
Total Number
Total Number
1
1Work Related Fatalities
Work‐ Related
Total Number
Fatalities ‐ Total Number
Other Other Other
Other
Other
Customer
GHG
Avoidance
through
3M
Customer
GHG Avoidance
Customerthrough
GHG
Avoidance
3M
through
Customer
GHG
Avoidance
through
3M3M through 3M
Customer
GHG
Avoidance
Tons
CO2e
Million Million
Metric Metric
Tons
Million
CO2e
MetricTons
CO2e
13
MillionMetric
Tons
CO2e
1313
MillionMetric 13
Tons CO2e
UseusingSales
2015
Sales
VolumeProductProductUse using
Product
2015
Use
Volume
using
2015
Sales
VolumeProduct
Use
using
2015
Sales
VolumeProduct
Useusing
2015 Sales Volume

MMBTUs
0
0
Units
Units
RY‐2016
RY‐2016
RY‐2016
RY‐2016Units
RY‐20
MMBTUs15,400,000
15,400,000

Metric43,900Tons

43,9009,130,000

Total NonhazardousTotal
Waste
Nonhazardous(Absolute) Waste (Absolute)
Metric Tons
Metric177,000
Tons
177,000
Category
5 Category‐ Generated
Waste5 Generated
in Operations
Tons
CO2e
Category
5 ‐ Waste
‐ in
Waste
Operations
Generated
in Operations
Metric Metric
Tons
CO2e
MetricTons
CO2eCategory‐5WasteGenerated
in Operations
MetricTons
CO2eCategory
5 ‐ Waste
Generated
in Operations
MetricTons
CO2e 248,0
248,000
248,000
248
Waste by Disposal Type,
WasteIncineration
by Disposal Type, Incineration
Metric Tons
Metric44,400Tons
44,4004,630

Waste by Disposal Type,
WasteLandfilled
by Disposal Type, Landfilled Metric Tons
Metric Tons
116,000
116,000
Category
6 Category‐ BusinessTravelTons
CO2eCategory
6 ‐ BusinessTravel‐ BusinessTravelMetric MetricTons CO2e
MetricTons
CO2eCategory
6 ‐6BusinessTravelMetricTons
CO2eCategory
6 ‐ Business Travel
MetricTons61,800
CO2e 61,8
61,80061
Waste‐to‐Energy Waste‐to‐Energy
Metric Tons
Metric Tons
61,00061,000Category
7&‐ Employee
MetricTons
CO2eCategory
7Recycle‐ Employee
Category
Category
Commuting
7 ‐7Employee‐Commuting
EmployeeCommutingTons
CO2e
MetricMetric
Tons
Tons
CO2e
CO2e
Category
7 ‐ EmployeeMetricCommuting
MetricTons
CO2e 364,0
364,000
364,000
364
OnsiteReuse
OnsiteRecycle&Commuting
Reuse
MetricTons
Metric56,500Tons
56,500
Offsite Reuse

Offsite Reuse

Metric Tons

Metric29,300Tons

29,300Category
13Category‐ Downstream
LeasedAssetsMetricTons
CO2e<1,000 <1,0Category
13 ‐ Downstream
13‐ Downstream
Assets 13
AssetsMetricLeased
Tons CO2e
MetricTons
CO2e<Category
13Leased‐ Downstream
LeasedAssetsMetricTons
CO2eCategory‐LeasedDownstream
AssetsMetric<1,000
Tons CO2e
Metric Tons
Metric
136,000
Tons
136,000
Offsite Recycle
Offsite Recycle
13About Report | Metric Tables

3M 2016 Baseline Reporting — Environmental Footprint

Metric Tables

MetricMetric Units

RY-2002

RY-2005

RY-2010

RY-2015

RY-2016

Absolute Scope 1 Emissions(Direct)

Metric Tons CO2e

16,800,000

10,100,000

4,280,000

3,770,000

4,140,000

Absolute Scope 2 Location-based
Emissions (Indirect)

Metric Tons CO2e

1,540,000

1,700,000

1,940,000

1,860,000

1,840,000

Total Greenhouse Gas
Emissions (Indexed to Net Sales,
Location‑based)

Metric Tons CO2e per
Net Sales (MM$USD)

1,120

559

233

186

199

Baseline
Reporting
Change%2012-2016 US EPA GHG-MRR/IPCC AR5 based inventory accounting is not directly comparable to 2002-2011 WRI/IPCC TAR, AR4 based GHG
accounting. 2002 inventory recalculated according to US EPA GHG-MRR/IPCC AR5 methodology (2.7% increase in absolute emissions overoriginal reported value).
Total Volatile Organic Compound
Emissions (Absolute)

Metric Tons

6,800

6,070

4,800

4,630

–31.9

Total Volatile Organic Compounds
Emissions (Indexed to Net Sales)

Metric Tons per Net
Sales (MM $USD)

0.321

0.228

0.158

0.154

–52.0

Total Energy Use (Absolute)

MMBTUs27,900,000

26,800,000

28,400,000

29,000,000

3.94

Total Energy Use (Absolute)MWh8,170,000

7,860,000

8,320,000

8,490,000

3.92

Total Energy (Indexed to
Net Sales)

MMBTUs per Net
Sales (MM $USD)

1,320

1,010

937

956

–27.6

Waste Disposed: Landfill,
Treatment and Incineration(Absolute)

Metric Tons

145,000

136,000

156,000

160,000

10.3

Waste Disposed: Landfill,
Treatment and Incineration(Indexed to Net Sales)

Metric Tons per Net
Sales (MM $USD)

6.83

5.09

5.16

5.33

–22.0

Starting in 2016, Waste Disposed does not include Waste-to-Energy. Total Hazardous and Total Nonhazardous Waste includes Waste-to-Energy.

212 | 3M 2017 Sustainability Report

Total Hazardous Waste (Absolute)

Metric Tons

47,70042,30044,50043,900–7.97

Total Nonhazardous Waste(Absolute)

Metric Tons

132,000

134,000

170,000

177,000

34.1

Total Water Use (Absolute)

Million Cubic Meters

49.0

43.0

42.5

45.9

–6.33

Total Water Use (Indexed to
Net Sales)

Million Cubic Meters
per Net Sales(MM $USD)

0.002310.001610.001410.00152–34.2#improvinglives | 213

About Report | Metric Tables

3M 2016 Goals and Results — Financial Performance

3M 2016 Baseline Reporting — Health and Safety
RY-2010

RY-2015

RY-2016

Baseline
Reporting
Change%MetricMetric Units

RY-2012

RY-2013

RY-2014

RY-2015

RY-2016

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

0.594

0.364

0.321

0.304

–48.8

Net Sales

Million $USD

29,90030,90031,80030,30030,100–0.6600.669

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

1.85

1.56

1.22

1.20

–35.0

Operating Income

Million $USD

6,480

6,670

7,140

6,950

7,220

3.88

11.4

Net Income
Attributable to 3M

Million $USD

4,440

4,660

4,960

4,830

5,050

4.55

13.7

Per Share-Basic

Actual $USD

6.40

6.83

7.63

7.72

8.35

8.16

30.5

Per Share-Diluted

Actual $USD

6.32

6.72

7.49

7.58

8.16

7.65

29.1

Total Debt toTotal Capital(total capital = debt
plus equity)

%

25

25

34

48

53

10

110

Capital Expenditures

Million $USD

1,480

1,670

1,490

1,460

1,420

–2.74

–4.05

Research,
Development andRelated Expenses

Million $USD

1,630

1,720

1,770

1,760

1,740

–1.14

6.75

Employee
Compensation
and Benefits

Million $USD

8,350

8,730

8,840

8,790

8,470

–3.64

1.44

Metric Units

Global Lost Time Incident Rate

Global Recordable Incident Rate

RY-2002

3M 2016 Goals and Results — Social Performance, Employees
Metric2015-2016 2012-2016
AnnualFive Year
ChangeChange
%%RY-2006

MetricMetric Units

RY-2012

RY-2013

RY-2014

RY-2015

RY-2016

2015-2016 2012-2016
AnnualFive Year
ChangeChange%%Global Full-time
Equivalent Employees

Total Number

Global Employee(Headcount)

Total Number

86,60089,60090,70090,40092,500

2.32

6.81

Payments toProviders of CapitalMillion $USD

1,800

1,900

2,390

2,700

2,870

6.30

59.4

Total Number
Part-Time Employees

Total Number

2,430

2,580

2,560

2,520

2,400

–4.76

–1.23

Provision for
Income Taxes

Million $USD

1,840

1,840

2,030

1,980

2,000

1.01

8.70

Total Number
Full-Time Employees

Total Number

84,10087,00088,20087,90090,1002.50

7.13

Percentage ofFemale Employees toTotal Employees

%

33.7

33.7

33.9

33.9

34.8

2.65

3.26

Percentage ofFemale Employees
in Management
Positions%86,60089,60090,70090,40091,600

1.33

5.77

3M 2016 Goals and Results — Community Engagement

214 | 3M 2017 Sustainability Report

24.6

25.3

26.1

26.9

27.8

3.35

13.0

2015-2016 2012-2016
AnnualFive Year
ChangeChange%%MetricMetric Units

RY-2012

RY-2013

RY-2014

RY-2015

RY-2016

Total Global Giving

Million $USD

60.3

61.6

81.3

72.8

67.3

–7.55

11.6

Total Cash Donations

Million $USD

27.9

30.3

30.3

34.1

34.8

2.05

24.7

Total In-Kind
Donations

Million $USD

32.3

31.3

51.0

38.4

32.5

–15.4

–0.619#improvinglives | 215

About Report | Metric Tables

3M 2016 Goals and Results — Environmental Performance
Environmental
Management
System — Metric

Metric Units

RY-2012

RY-2013

RY-2014

RY-2015

RY-2016

0

0

0

0

0

Total Number ofSignificant Spills

Total Number

Number of
Significant Fines

Total Number

Total Monetary Valueof Significant Fines

Million $USD

00.0630Total Number ofNon-Monetary
Sanctions

Total Number

02

Environmental
Liability Accrued atYear End

Million $USD

Air Emissions— Metric

Metric Units

Absolute Scope 1
Emissions (Direct)

Metric Tons CO2e

Absolute Scope
2 Location-based
Emissions (Indirect)

Metric Tons CO2e

Total Scope 1 and
2 GHG Emissions:Market-based
Accounting

Metric Tons CO2e

Total Scope 3
Emissions (Upstream)

Metric Tons CO2e

Total Scope 3
Emissions(Downstream)

Metric Tons CO2e

Air Emissions— Metric

Scope 3, Category 4(Upstream
Transportation andDistribution)

Significant spill: spills included in the organization's financial statement
0

2

1

0

0

0.113

0

0

1

0

0

Scope 3, Category 2(Capital Goods)

Scope 3, Category 3(Fuel and Energy
Related Activities;
Not Including
Scope 1 or Scope 2
Emissions)

Metric Tons CO2e

Metric Tons CO2e

Metric Tons CO2e216 | 3M 2017 Sustainability Report

Metric Tons CO2e

RY-20121,510,000

RY-20131,230,000

RY-2014995,000

RY-2016

2015-2016 2012-2016
AnnualFive Year
ChangeChange%%699,000

Emissions disclosed
in previous years(2011-2014) were
miscategorized as
Category 9; data
does not include
emissions fromtransportation of
raw materials fromsuppliers

254,000

248,000

Calculated from
3M primary dataon waste by facility
size or number of
employees

55,80061,800Calculated from
3M primary data on
business travel

364,000

From Climate Earth,using an input/output
model, based on 3M
spend

RY-2015780,000

Significant fine: fine or penalty over $10,000

0RY-20124,370,000

2,250,000

0RY-20135,590,000

2,360,000

0RY-20144,390,000

2,240,000

0RY-20153,770,000

1,860,000

RY-2016

4,140,000

1,840,000

2015-2016 2012-2016
AnnualFive Year
ChangeChange%%9.81

10,600,000

11,100,000

9,500,000

–1.08

–18.2

9,130,000

All downstream categories either do not apply or are de minimis

8,160,000

584,000

8,360,000

647,000

Partially included in
Scope 1 and Scope 2
emissions reporting

8,330,000

812,000

551,000

6,860,000

577,000

621,000

Metric Tons CO2e

Scope 3, Category 6(Business Travel)

Metric Tons CO2e

Insufficient data

58,60056,90061,1006,610,000

Scope 3, Category 7(EmployeeCommuting)

Metric Tons CO2e

Scope 3, Category 8(Upstream, Leased
Assets)Metric Tons CO2e

Scope 3, Category 9(Downstream
Transportation andDistribution)

Metric Tons CO2e

Scope 3, Category 10(Processing of Sold
Products)

Metric Tons CO2e

Scope 3, Category 11(Use of Sold
Products)

Metric Tons CO2e

Scope 3, Category 12(End of Life
Treatment of Sold
Products)

Metric Tons CO2e352,000

353,000

358,000

356,000

These emission are
included in Scope 1
and Scope 2, because
they are all under 3M
operational control

Included in Scope 1 and Scope 2 emissions reporting–5.26

5,920,000

10,700,000

Scope 3, Category 5(Waste Generated in
Operations)

0

Net GHG emissions based on the categories evaluated. Due to change in boundaries, Scope 3 Upstream emissions should not be compared ona year-on-year basis.
Scope 3, Category 1(Purchased Goods
and Services)

Metric Units

From Climate Earth,using an input/output
model, based on 3M
spend

538,000

From Climate Earth,using an input/output
model, based on 3M
spend

607,000

Emissions fromtransmission anddistribution losses(Category 3c) are
included in Scope 2
inventory

Not evaluated; most of 3M's products are intermediates with many potential end uses. According
to the GHG Protocol Scope 3 Calculation and Guidance, a company that produces intermediate
products with many potential downstream applications, each with a potentially different GHG
emission profile, cannot reasonably estimate the downstream emissions associated with thevarious end uses of the intermediate products.

Scope 3, Category 13(Downstream Leased
Assets)Metric Tons CO2e

Scope 3, Category 14(Franchises)

Metric Tons CO2e00

Scope 3, Category 15(Investments)

Metric Tons CO2e00<1,000<1,000Prior to 2015, 3M
reported facilities
leased to 3rd parties
under Scope 1 and 2

0

0

0

No franchises under
3M financial control

0

0

0

No investments under
3M financial control

Included in Scope 1 or Scope 2 emissions
reporting

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.
An input/output model calculation methodology based on spend by commodity was used in collaboration with Climate Earth for Categories 1
and 2, and based on employee headcount by country for Category 7. A third-party audit of the input/output model data has been conducted toconfirm compliance with the WRI/WBCSD Corporate Value Chain (Scope 3).
Estimated Scope 3 data uncertainty is ±50% (WRI/WBCSD, GHG Protocol Corporate Value Chain (Scope 3) Accounting and ReportingStandard, 2011).

#improvinglives | 217

About Report | Metric Tables

Air Emissions— Metric

Metric Units

Total Greenhouse
Gas Emissions(Indexed to Net
Sales, Locationbased)

Metric Tons CO2e
per Net Sales(MM$USD)

RY-2012221

RY-2013258

RY-2014208

RY-2015

186

RY-2016

199

2015-2016 2012-2016
AnnualFive Year
ChangeChange
%
%

6.88

10.0

Total Volatile Organic
Compound Emissions(Absolute)

Metric Tons

5,980

5,430

5,550

4,800

4,630

–3.54

–22.6

Total Volatile
Organic Compounds
Emissions (Indexedto Net Sales)

Metric Tons per Net
Sales (MM $USD)

0.200

0.176

0.174

0.158

0.154

–2.53

–23.0

Energy — Metric

Metric Units

Total Energy Use(Absolute)

2015-2016 2012-2016
AnnualFive Year
ChangeChange
%%RY-2012

RY-2013

RY-2014

RY-2015

RY-2016

MMBTUs27,700,000

28,700,000

29,100,000

28,400,000

29,000,000

Total Energy Use(Absolute)MWh8,110,000

8,400,000

8,520,000

8,320,000

8,490,000

Total Energy(Indexed to Net
Sales)MMBTUs per Net
Sales (MM $USD)

931

930

912

937

956

2.03

Total Fuel Oil #1,#2, #6

MMBTUs1,490,000

1,490,000

1,630,000

1,330,000

1,200,000

Total Jet FuelMMBTUs163,000

143,000

161,000

153,000

Total Propane

MMBTUs132,000

138,000

192,000

Total Gasoline andDieselMMBTUs226,000

190,000

Total Coal

MMBTUs0

Total Natural Gas

MMBTUsTotal Electricity
Consumption

2.11

4.69

2015-2016 2012-2016
AnnualFive Year
ChangeChange%%Waste — Metric

Metric Units

RY-2012

RY-2013

RY-2014

RY-2015

RY-2016

Waste Disposed:
Landfill, Treatment
and Incineration(Absolute)

Metric Tons

137,000

146,000

153,000

156,000

160,000

2.56

16.8

Waste Disposed:
Landfill, Treatment
and Incineration(Indexed to
Net Sales)

Metric Tons per Net
Sales (MM $USD)

4.58

4.74

4.80

5.16

5.33

3.29

16.4

Waste by Disposal
Type, Incineration

Metric Tons

43,00043,20044,20045,30044,400

–1.99

3.26

Waste by Disposal
Type, Landfilled

Metric Tons

93,900103,000

109,000

111,000

116,000

4.50

23.5

% Data Coverage
Total Waste(Absolute)

%

96

97

98

97

98

1.0

2.1

Starting in 2016, Waste Disposed and Waste by Disposal Type does not include Waste-to-Energy. Total Hazardous and Total Nonhazardous
Waste below includes Waste-to-Energy.
Total Hazardous
Waste (Absolute)

Metric Tons

39,70039,40041,10044,50043,900

–1.35

10.6

2.69

Total Nonhazardous
Waste (Absolute)

Metric Tons

140,000

153,000

164,000

170,000

177,000

4.12

26.4

–9.77

-19.5

Total Waste Diverted(Absolute)

Metric Tons

255,000

274,000

287,000

296,000

283,000

–4.39

11.0

159,000

3.92

–2.45

Waste-to-Energy

Metric Tons

42,40045,70051,90058,10061,0004.99

43.9

170,000

190,000

11.8

43.9

Onsite Recycle &Reuse

Metric Tons

51,10066,00069,50065,50056,500

–13.7

10.6

209,000

270,000

155,000

–42.6

–31.4

Offsite Reuse

Metric Tons

33,80032,00031,90032,90029,300

–10.9

–13.3

0

0

0

0

Offsite Recycle

Metric Tons

128,000

131,000

134,000

139,000

136,000

–2.16

6.25

14,800,000

15,500,000

15,900,000

14,700,000

15,400,000

4.76

4.05

MMBTUs9,980,000

10,300,000

11,100,000

10,600,000

10,700,000

0.943

7.21

Total SteamConsumption

MMBTUs840,000

902,000

1,010,000

1,130,000

1,180,000

4.42

40.5

Total Heating
Consumption

MMBTUs17,700,000

18,300,000

19,100,000

17,700,000

18,300,000

3.39

3.39

Total Heating
Consumption

MWh5,180,000

5,370,000

5,590,000

5,190,000

5,360,000

218 | 3M 2017 Sustainability Report#improvinglives | 219

About Report | Metric Tables

Water — Metric

Metric Units

Total Water Use(Absolute)

Million Cubic
MetersTotal Water
Use (Indexed to
Net Sales)

Million Cubic
Meters per Net
Sales (MM $USD)

Sites located inwater stress/scarceareas; water sources
significantly affectedby withdrawal ofwater with water
conservation
planning efforts

Total Number

RY-2012

RY-2013

RY-2014

RY-2015

RY-2016

2015-2016 2012-2016
AnnualFive Year
ChangeChange
%
%

43.4

43.3

42.5

42.5

45.9

8.00

5.76

0.001450.001400.001340.001410.00152

7.80

4.83

24

22

27

25

25

0.0

3M 2016 Goals and Results — Supplier Responsibility
2015-2016 2012-2016
AnnualFive Year
ChangeChange%%MetricMetric Units

RY-2012

RY-2013

RY-2014

RY-2015

RY-2016

Total Number ofSuppliers

Total Number

106,000

107,000

95,80098,50088,200

–10.5

–16.8

Total Number ofSupplier Reviews

Cumulative Number(since 2008)

2,510

3,210

3,880

4,570

5,120

12.0

104

4.2

3M uses the World Business Council for Sustainable Development (WBCSD) Global Water Tool to screen site locations for water stress/scarcelevels and prioritizes conservation plan development based on internal criteria.

3M 2016 Goals and Results — Health and Safety
2015-2016 2012-2016
AnnualFive Year
ChangeChange%%MetricMetric Units

RY-2012

RY-2013

RY-2014

RY-2015

RY-2016

Global Lost Time
Incident Rate

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

0.402

0.339

0.355

0.321

0.304

–5.30

–24.4

Global Recordable
Incident Rate

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

1.42

1.41

1.45

1.22

1.20

–1.64

–15.5

Work Related
Fatalities —3M Employees

Total Number

1

1

0

0

1

Work Related
Fatalities —3M Contractors

Total Number

1

1

0

0

0

Work Related
Fatalities —Total Number

Total Number

2

2

0

0

1

220 | 3M 2017 Sustainability Report#improvinglives | 221

#improvinglives
Crossword
Across
2. 2025
5. Partners across responsible
sourcing

1

8. It’s “What survives when what
has been learned has been
­forgotten.”—B. F. Skinner

2
3

9. From which products are made10. Key theme; embedded firmly at
the core of 3M

5

4

6

7

12. All of us
14. Collaborate with to solve
challenges

8

15. Aeschylus said it is wedded
to obedience
17. Types of energy

9

18. At the heart of everything we do
10

Down

11

1. 71% of the Earth’s surface

12

3. The result of “We”

13
14

19

4. Creativity spurs it
6. Celebrate it15

7. Our Ambition
16
17

1 1. Thousands of commencementspeeches on this topic
13. Advance, enhance, improve
14. From the Latin “zone”

18

16. Mahatma Gandhi called it
real wealth19. 3M _______ . Applied to Life.™

Find the answers at
go.3m.com/sustainability-puzzle-answers