DUPONT SUBMISSION TO THE CDP5

Transcription

1 DUPONT SUBMISSION TO THE CDP5 1 Climate Change Risks, Opportunities and Strategy For each question please state the time period and where possible the associated financial implications. a i DuPont is a 205 year-old global company that operates in dynamic markets around the world. Over its long history, DuPont has transformed its product and service offerings to meet the changing needs of society, basing its business strategy on detailed analysis of risk and opportunity. DuPont believes that climate change is an important global issue that will present numerous risks and opportunities to business and society at large. DuPont s longstanding commitment to safety and sustainability provides an additional incentive to analyze and manage risks and opportunities associated with climate change mitigation and adaptation. Risks: What commercial risks does climate change present to your company including, but not limited to, those listed below? Regulatory risks associated with current and/or expected government policy on climate change e.g. emissions limits or energy efficiency standards. Several DuPont facilities are operating in Europe under the EU Emissions Trading Scheme (EU ETS). It is possible that the next phase of the EU system may expand to include a number of other DuPont facilities in Europe that are not currently under direct regulation, which could create additional administrative and/or compliance costs. The implementation of the next phase of the EU ETS could also lead to additional increases in energy costs. A large portion of DuPont s global greenhouse gas emissions are U.S.-based and therefore are not subject to existing regulation of GHG emissions. In the United States there has been considerably more activity on climate change at the state, regional and federal levels in recent months. DuPont is closely monitoring the evolving policy debate and is actively engaged in dialogue with lawmakers and their staff, offering input on elements that we believe would contribute to an effective framework for action. DuPont believes that we have valuable input to provide into this process, given our experience taking early action to reduce GHG emissions, our voluntary participation in emissions trading as a member of the Chicago Climate Exchange (CCX), and our experience working within the EU Emissions Trading Scheme. In addition to efforts to monitor climate policy developments in Europe and the United States, DuPont also continues to monitor relevant policy discussions in other countries. As companies like DuPont make long term capital investment decisions, the uncertainty regarding the U.S. regulatory future (when a climate bill will be passed, what the details of a federal program would be, etc) adds an element of uncertainty to those business decisions. In addition, if in the absence of federal legislation, states were to implement legislation mandating greenhouse gas emission reductions DuPont and other companies that have customers in markets across the entire country could be disadvantaged by the added administrative costs and burden of complying with a variety of state-specific regulatory requirements. While this uncertainty regarding the regulatory future as it pertains to long-term capital investment decisions is particularly relevant in the United States where the majority of our operations are currently located, policy uncertainty is also a factor in investment and planning decisions in many other countries around the world. Many anticipate that a federal climate program would lead to a rise in energy costs as a result of a price on carbon. Some believe that the carbon price signal in the economy could also lead to fuel shifting from coal to natural gas given its relatively lower carbon content, leading to further increases in the cost of natural gas and feedstocks derived from natural gas. DuPont s energy intensive processes rely on an adequate and stable supply of natural gas, and small changes in the price of natural gas can have significant impact on our businesses. Having already

2 implemented significant energy conservation and efficiency measures at our manufacturing facilities, DuPont could be at a competitive disadvantage if regulation does not take into consideration the Company s early and ongoing efforts to reduce our footprint. DuPont is a producer of fluoroproducts, including refrigeration gases which are widely used in commercial refrigerators and freezers, as well as in home and automobile air conditioning units. These gases are notable because of their high global warming potential (GWP), and because the process emissions are relatively small when compared with the emissions that result from typical product use. Many of these product use emissions could be avoided if the proper policy incentives were in place to incentivize capture and recycling (or destruction) of the gases. In this case, and in other situations where a producer has limited control over the product-use emissions, appropriate policy will be necessary to drive environmentally smart behavior throughout the marketplace at all stages of the product lifecycle. DuPont is working hard to develop new, next-generation, lower-gwp products that could replace higher-gwp fluoroproducts while maintaining the high levels of performance and safety. ii Physical risks to your business operations from scenarios identified by the Intergovernmental Panel on Climate Change or other expert bodies, such as sea level rise, extreme weather events and resource shortages. DuPont is a global company with operations in over 70 countries worldwide. Some DuPont facilities are located in coastal regions that are susceptible to severe weather events, including the U.S. Gulf Coast. DuPont takes seriously the risk of potential physical damage to company facilities and has taken a number of proactive measures to minimize risk, such as the development and implementation of comprehensive disaster management planns. The company s emergency preparedness plans include consideration of design and siting of buildings, process safety management, community preparedness, and site emergency response. The 2005 U.S. Gulf Coast hurricanes drew national attention to the potential for damage resulting from hurricanes and other natural disasters. The physical and economic impacts of these hurricanes to DuPont facilities were among the most significant challenges faced by the company in As a result of thorough emergency preparedness plans, all impacted facilities remained environmentally secure, and no adverse environmental impacts resulted from this physical damage to DuPont facilities. While DuPont s environmental management systems and emergency response plans are likely to have prevented even greater losses, the physical and economic damage sustained during the 2005 hurricane season was significant, and has led to increased internal discussion and planning around the ongoing threat of severe weather events. DuPont recognizes that even with the best preparation, the company could still be impacted if a storm caused a major interruption in business for an important supplier or customer (e.g. natural gas supplier). One of the company s most important resources is its employee base. Our skilled, experienced employees are critical to the smooth operational functioning of DuPont facilities, and a shortage of such employees whether due to geographical displacement following a natural disaster or another circumstance could have a significant impact on operations. Ensuring the safety of all employees during Hurricanes Katrina and Rita was a company priority, and DuPont is proud that all facilities damaged during the 2005 Gulf Coast hurricane season returned to operational status by the end of the first quarter 2006, ahead of the operations of several other companies operating in the region. We could not have done this without our employees. Other potential physical risks described by the Intergovernmental Panel on Climate Change include reduced freshwater supply and regional changes in agricultural productivity. These risks could pose a threat to company operations, particularly the agricultural work being done in regions around the world by Pioneer, a DuPont subsidiary. Our strategies to promote water conservation and improve food security through improved seed and agricultural processes are discussed below. iii Other risks including shifts in consumer attitude and demand. DuPont depends on a robust global economy to drive demand for our products and services. If the regulatory and/or physical impacts associated with climate change were to inflict severe

3 damage to the overall economy this would present a general commercial risk to DuPont businesses. DuPont is committed to working to find policy solutions that are economically sustainable while addressing the environmental challenge. Because of DuPont s upstream position in many of the supply chains in which we operate, and the limited number of products that are sold directly to the consumer, the company is somewhat insulated from shifts in consumer attitude and demand. While no industry or company is ever removed from the risk of a potential sudden or dramatic shift in consumer sentiment, we believe that the company s attention to the issue of climate change and early action to reduce our own global GHG emission footprint has built up credibility and goodwill for the DuPont brand, and has helped position DuPont as a leader in the business community with respect to climate change. b Opportunities: What commercial opportunities does climate change present to your company for both existing and new products and services? DuPont is committed to continuing to bring new products to market that will help our customers reduce their GHG emission footprint and transition to a carbon constrained economy. Many of DuPont s existing products provide improved safety, efficiency, and environmental benefit in our homes, offices, and automobiles. Increased climate change mitigation efforts (resulting from voluntary or mandatory greenhouse gas emission reductions) could drive expanded demand in some of DuPont s major markets, such as automotive materials, building materials, and biofuels. In addition, some of DuPont s products could aid in climate change adaptation efforts. The following is a list of examples of innovations and initiatives that aim to create value for DuPont while also delivering environmental benefit. Agriculture & Food Pioneer Hi-Bred a DuPont business, dramatically increases and enhances the world s food supply by using advanced plant genetics to develop field crops that are more productive, of higher quality, more nutritious, and better suited for specific uses such as biofuel production. Pioneer also works to enhance traits that make seeds more productive under certain weather scenarios, such as improving drought resistance. Building and Construction DuPont Tyvek Weatherization Systems are used in millions of homes to combat water, moisture, and air infiltration. DuPont Tyvek HomeWrap forms a protective breathable barrier, helping to keep wind and rain out, contributing to energy efficiency in the home. DuPont Tyvek AtticWrap creates a sealed attic system, reducing air leakage and energy loss through the roof. DuPont has eight products used in photovoltaic solar panels The company is investing in continued expansion of these products and is innovating next-generation solutions to help improve solar module lifecycle and efficiency. DuPont SentryGlas Plus and DuPont StormRoom with Kevlar help provide protection against hurricane-force winds and airborne debris. A joint venture between DuPont and U.K.-based Tate & Lyle is building one of the world s largest bio-materials facilities in Tennessee. It will convert corn sugar into Bio- PDO, the key renewable ingredient that is used to make DuPont Sorona polymer for a number of products such as carpet. DuPont technology and products are incorporated into air filters, water filtration products, smoke alarms and carbon monoxide alarms that make commercial and residential buildings healthier and safer. Communications DuPont Imaging Technologies offers DuPont Cyrel FAST, Cromaprint and Artistri digital printing systems that are environmentally smart, with no processing solvents to handle, store, or recycle. They also use significantly less water, ink, and energy than conventional printing systems.

4 DuPont certified limited combustible cable has insulation and jacket materials that are specifically engineered to reduce smoke generation and flame spread. It also offers environmental benefits compared to typical wire and cable jacketing and insulation materials it is free of heavy metals, phthalates, PBB and PBDE. DuPont Abandoned Cable Services supports the removal and recycling of abandoned copper communications cable, which is typically combustible and is present in many commercial buildings today. Looking to the future, we are working in partnership with Environmental Defense to develop a framework for responsible development, production, use, and disposal of nano-scale materials critical to next-generation communications devices. Transportation In partnership with BP, DuPont is developing next-generation biofuels that can be produced from agricultural byproducts containing sugar, while promoting sustainable agriculture. We also are developing seeds to increase the production of alternative fuels and automotive efficiency. DuPont technology is enabling the development and commercialization of fuel cellpowered vehicles. Today, fuel cell-powered buses and automobiles are running in demonstration fleets, a prelude to their eventual mass commercialization. DuPont is introducing new grades of DuPont Hytrel thermoplastic elastomer made with renewable resources for use in a range of automotive parts. DuPont Spallshield is used to create automotive sunroofs that protect passengers more effectively and reduce weight by up to 30%. DuPont Performance Coatings offers low-voc emission automotive coatings and is developing finishes based on renewable resources. DuPont has identified and is now testing new proprietary refrigerants to reduce their global warming potential in future automotive air conditioning systems. DuPont Kevlar fiber provides durability to automotive tires, protects soldiers and combat vehicles, and makes cars and airplanes stronger, lighter, and more fuel efficient. DuPont has committed to a three-year, $100 million global expansion for DuPont Nomex, a flame-resistant fiber. Used as a lightweight structural support, Nomex helps substantially improve the performance and safety of most commercial aircraft. DuPont Safety Resources is a world-class consultancy that has helped more than 1,600 clients reduce workplace injury rates. Customers include companies in the aerospace, transportation, energy, and health care industries. c Strategy: Please detail the objectives and targets of the strategies you have undertaken or are planning to take to manage these risks and opportunities. Please include adaptation to physical risks. Regulatory DuPont is actively engaged with stakeholders from Capitol Hill, government agencies, NGOs, associations, and other businesses to discuss and provide input on legislative proposals. Internal development and discussion of different policy positions is done within the Climate Change Steering and Issue Teams, which include representatives from both business and corporate functions. DuPont s regulatory advocacy is focused specifically on some key policy issues of particular importance to the company. These issues include: reliance on market-based mechanisms; ensuring coordination of climate and energy policies; providing credit for early action taken to reduce greenhouse gas emissions; attention to differential sectoral impacts of a carbon price and the ability/inability of certain sectors to pass along the price to consumers; and the inclusion of cost-control mechanisms (such as offsets) to help moderate the cost to individual regulated entities and the economy overall while maintaining the environmental integrity of the cap. In the past year DuPont has been involved with three major coalition efforts that resulted in public statements calling for governmental action on climate change. The U.S. Climate Action Partnership is a CEO-driven effort that brought together a group of companies and NGOs to develop a set of consensus principles and recommendations on a mandatory, flexible federal climate change program. The USCAP coalition continues to work together to respond to

5 inquiries from Congress, to further discuss common policy positions, and to expand the group s membership to include additional perspectives. Another initiative, Capital to the Capitol, organized by Ceres and the Investor Network on Climate Risk, issued a call to action to the U.S. Congress that was highly consistent with the USCAP messages. This initiative was unique in its membership, which included a group of investors who collectively have $4 trillion assets under management. The Global Roundtable on Climate Change, which was convened by Columbia University s Earth Institute, brought together a wide range of stakeholders from around the world to discuss the science of climate change and to develop and issue recommendations for an international framework to address this global challenge. In DuPont s public policy advocacy efforts we are committed to finding solutions that ensure environmental protection while being economically sustainable. We believe that all major emitting sectors of the economy should be involved, and that a program should be structured such that the lowest-cost reductions are identified and prioritized. A federal program must also take into consideration the differential impacts of a carbon price on different sectors of the economy for industrial manufacturers facing unregulated offshore competition, a small increase in energy costs will drive very different behavior than a similarly sized increase in energy cost would have on the average residential electricity customer. More information on DuPont s perspectives on climate policy can be found on our website: Physical DuPont has a long history and corporate culture of emergency preparedness that has enabled the company to protect its people and its assets from a variety of crisis events, including natural disaster-related events. The corporation maintains an in-depth set of safety, health and environmental (SHE) planning processes and mandatory SHE standards that specifically address preparedness and response at the facility and corporation level. These include individual, specific standards on Process Safety Management, Process Hazards Analysis, Design and Siting of Buildings, Emergency Planning, Community Preparedness and Site Emergency Response. These standards are meant to design facilities that would minimize adverse consequences of natural disasters and other emergency events, to safely prepare for such events (e.g. shutdown procedures in advance of anticipated events), and to quickly and effectively respond to consequences. The corporation also maintains a Global Crisis Management System to manage crises at the appropriate level of response: facility, business or corporate depending on the magnitude of the crisis (such as natural disaster) and the consequences. These standards and systems are further supported by an extensive set of Engineering Design Standards that provide design guidance on such things as wind loads, containment, etc., that enhance or fill gaps in building codes and industry standards. Of course, these overlay national and local regulatory requirements such as the U.S. Clean Air Act Section 112(r), Risk Management Programs. To help address the physical risk presented by the potential for decreased freshwater supply, DuPont has set a commitment to reduce water consumption by at least 30% by 2015 at our global sites that are located where the renewable freshwater supply is either scarce or stressed, as defined by the United Nations. At all other sites, DuPont will hold water consumption flat on an absolute basis through the year 2015, offsetting any increased demand from production volume growth through conservation, reuse and recycle practices. Other DuPont is using lifecycle analysis tools to better understand the full lifecycle cost and impact of select DuPont products (such as current and next-generation biofuels), and to identify solutions that would help minimize the environmental impact throughout our value chains. We believe this type of analysis will help quantify relative costs and benefits and guide appropriate purchasing and policy decisions as emerging markets like biofuels continue to expand. DuPont works closely with many of our major supply chain partners to jointly manage supply and demand issues, taking into consideration a wide range of factors that could interrupt the normal flow of business, including major weather events.

6 Opportunities In October 2006 DuPont announced our 2015 Sustainability Goals, which include market-facing goals in addition to footprint goals. The market goals are aimed at capturing value in a carbonconstrained world by tying our business growth more directly to the development of products that have environmental benefits and help our customers increase their energy efficiency and/or reduce their greenhouse gas footprint. At the corporate level, DuPont also looks for opportunities to make our overall portfolio less energy intensive, and energy use is one factor that is weighed when investments or divestitures are considered. DuPont s market goals address all stages of the product development timeline, starting with R&D efforts and stretching towards marketing and sales. The goals are listed below: Environmentally Smart Market Opportunities from R&D Efforts: By 2015, DuPont will double our investment in R&D programs with direct, quantifiable environmental benefits for our customers and consumers along our value chains. Products that Reduce Greenhouse Gas Emissions: By 2015, DuPont will grow our annual revenues by at least $2 billion from products that create energy efficiency and/or significant greenhouse gas emissions reductions for our customers. We estimate these products will contribute at least 40 million tones of additional CO2 equivalent reductions by our customers and consumers. Revenues from Non-Depletable Resources: By 2015, DuPont will nearly double our revenues from non-depletable resources to at least $8 billion. Products that Protect People: DuPont will enhance our focus on protecting people. We will increase the amount of R&D spent on developing and bringing to market new products that will protect people from harm or threats. Between now and 2015, we will introduce at least 1,000 new products or services that help make people safer globally. In addition, DuPont would like to include a position statement from the Company s Board of Directors issued in response to a stockholder resolution that was introduced at the April 2007 Annual Meeting. We believe that this statement provides a helpful summary of the company s strategic actions to address climate change, while also demonstrating the engagement of high level Company officials on this important issue. * * * * * * * * * * * * DuPont Board of Directors statement in response to stockholder resolution on climate (from the April 2007 Annual Meeting Proxy Statement): The core direction of the Company is sustainable growth the creation of stockholder and societal value while at the same time reducing the Company s environmental footprint along the value chains in which it operates. While DuPont s environmental and greenhouse gas initiatives do have the beneficial effect of protecting the environment, it undertakes these initiatives for valid business reasons. The Company and the Board of Directors are committed to the foundational principle that what is good for business must be also be good for the environment and for the people everywhere in the world. Since the early 1990 s when DuPont began taking action to reduce greenhouse gas emissions, it has accomplished major global reductions in emissions, and has set ambitious goals for the current and future decade. These early actions have positioned the Company to be a leader in the development of public policy measures addressing climate change, and the Board of Directors believes this leadership position has served the Company, and will continue to serve it well in the future. It is in the best interest of DuPont s stockholders to anticipate increased efforts by governmental agencies to reduce the level of pollutants emitted into the environment, and to assess proactively the impact of expanding regulation of these gases throughout the world and in several states in the United States. The Board of Directors also believes it is critical that the Company participate in the public policy discussions to ensure that governmental actions give credit to early action and utilize market mechanisms as a route to assure policies are economically sustainable. These developments present an opportunity for the Company to continue to aggressively reduce its own atmospheric emissions and to develop environmentally safe products to benefit our customers, our Company and the environment at large.

7 Since 1990, the Company has reduced its global greenhouse gas emissions measured as carbon dioxide equivalents by 72 percent, which resulted in approximately $3 billion of avoided costs. Additionally, the Company will introduce fleet vehicles that represent the leading technologies for fuel efficiency and fossil fuel alternatives. By 2015, the Company will ensure that 100 percent of its off-site fleet of cars and light trucks meets these criteria, and will track and report publicly on its fuel efficiency improvements. The Company is also broadening its sustainability commitments beyond internal footprint reduction to include market-driven targets for revenue and research and development investment. These goals are tied directly to business growth, specifically to the development of safer and environmentally improved new products for key global markets, including transportation, building and construction, agriculture and food, and communications. Revenues from current safety and environmental offerings are increasing at double the Company s average annual revenue growth rate. The Company is among the world s leaders in developing and commercializing renewable, biobased materials; advanced biofuels; energy-efficient technologies; enhanced safety and protection products; and alternative energy products and technologies. These include highperformance products such as Bio-PDO, which is made using corn as the raw material, as the key ingredient for Sorona polymer used in carpeting, apparel, and other applications; Pioneer seeds, which use advanced plant genetics to develop higher yield, higher quality crops; and new uses for DuPont Kevlar, Nomex and Tyvek in personal protective apparel for law enforcement personnel, firefighters and emergency responders. Also under development are new products that enhance the environmental profile of DuPont s traditional businesses. These include refrigerants with lower greenhouse warming potential; automotive finishes with lower VOC (volatile organic compounds) content; and engineering polymers and coatings based on renewal materials. As part of its market-facing 2015 Sustainability Goals, the Company is committed to: doubling its research and development investment in environmentally smart market place opportunities with direct, quantifiable environmental benefits for its customers and consumers along its value chain; growing annual revenue $2 billion or more from products that create energy-efficiency and/or reduce greenhouse gas emissions; doubling annual revenue to $8 billion from non-depletable resources. Since 1992, the Company has published an annual Sustainable Growth Progress Report, which includes a full disclosure of its annual greenhouse gas emissions and energy consumption at our plants and other facilities. The report also includes a review of progress toward the Company s environmental goals. Additionally, the Company reports its economic environmental and social performance data in the Global Reporting Initiative format. Both reports are available on the Company s website ( at: and Also, environmental updates are consistently communicated to a number of public audiences via news releases, and include new environmental initiatives and product launches. DuPont also participated in the Carbon Disclosure Project (CDP), the purpose of which was to summarize the analysis of responses to a questionnaire and to help investors determine how the 500 largest publicly-traded companies in the world (based on market capitalization) are engaging with the climate change issue and what the likely commercial implications are. The CDP report is available at: d Reduction targets: What are your emissions reduction targets and time frames to achieve them? What renewable energy and energy efficiency activities are you undertaking to manage your emissions? (This question not required if answering Section B.) Answered in Section B

8 2 Greenhouse Gas Emissions Accounting 1 a Methodology: Please provide the following information on your company s emissions measurements: i The accounting year used to report GHG emissions. 2 January 1 through December 31, 2006 ii iii iv The methodology by which emissions are calculated. WRI GHG Protocol Corporate Accounting and Reporting Standard Financial Control Basis: DuPont uses the methodologies specified in the WRI Greenhouse Gas Protocol to calculate its emissions. DuPont uses the Control Approach, accounting for 100% of the emissions from operations over which it has control. DuPont reports Scope 1 direct emissions from fuel consumption at its manufacturing sites, offices and laboratories and emissions of other GHG emissions at those sites, and Scope 2 emissions associated with purchased electricity and steam at its manufacturing sites, offices and laboratories. DuPont does not include Scope 3 emission in its calculations. Whether the information provided has been externally verified or audited. Information not yet audited for Prior years information externally verified/audited for facilities in the US by CCX/NASD and for five facilities under the European Union Emissions Trading Scheme (EU ETS). An explanation for any significant variations in emissions from year to year, e.g. due to major acquisitions, divestments, introduction of new technologies, etc. DuPont has continued to reduce its global greenhouse gas emissions both through energy conservation and efficiency programs and through reductions in non-energy GHGs. These improvements occurred despite increased production vs. the year 2005 in which significant shutdowns were experienced due to hurricanes on the U.S. Gulf Coast. In addition, DuPont Performance Elastomers facilities have been changed from a 50/50 joint venture to a whollyowned subsidiary and so are included in the 2006 emissions inventory. b Scope 1 and 2 of GHG Protocol: Direct and Indirect GHG emissions and electricity consumption. 3 Please complete the table below for tonnes CO2e emitted and electricity consumption: Globally Scope 1 activity tonnes CO2e emitted 9.0 million 8.4 million Scope 2 activity tonnes CO2e emitted 3.1 million 2.9 million MWh of purchased electricity 5.2 million 4.8 million Percentage of purchased MWh from renewables Annex B Countries 2.8% (3.7% w/recs) 2.4% (3.3% w/recs) c Scope 3 of GHG Protocol: Other Indirect GHG emissions. Where feasible please provide estimates for the following categories of emissions: i Use/disposal of company s products and services. DuPont has estimated the energy savings associated with several products including Tyvek HomeWrap, glass laminates and lightweight plastics for automotive applications. For example, the average annual energy savings associated with improved insulation and moisture barrier properties of Tyvek HomeWrap for a typical home are more than 10 times greater in the first year of application than the total energy required to produce the product. In addition we have performed life-cycle analyses for several of our products including energy and emissions impacts. We expect to conduct more life cycle analyses and more extensive measurements of the greenhouse gas reduction impacts of our products in alignment with anticipated future goals for improvements in these areas. However, we have not made estimates of these emissions for most of our products. DuPont manufactures and sells 1 The six main Greenhouse Gases are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6). 2 If you are responding to CDP for the first time, please provide details where available, of emissions for the last three measurement cycles. 3 For the purposes of responding to this section, please follow the World Resources Institute (WRI), World Business Council for Sustainable Development s (WBCSD s) Greenhouse Gas Protocol (corporate standard revised version), details of which can be found at

9 fluorinated gases (e.g., HCFC refrigerants). We are unable to estimate the GHG emissions due to losses during use and disposal down the value chain. The Company strongly supports government policies that would reduce such emission losses. ii Your supply chain. In general we have not made estimates of these emissions. The life cycle analyses performed for certain products, as mentioned above, take into account GHG emissions attributable to the extraction processes for raw materials, and transport and production of ingredients. iii External distribution/logistics. In general we have not made estimates of these emissions, except in the life cycle analyses performed for specific products, as mentioned above. iv Employee business travel. We have not made estimates of these emissions. 3 Additional Greenhouse Gas Emissions Accounting Using the methodology as set out in 2(a), please state your Scope 1 and 2 emissions as follows: a Countries: For each country in which you have operations, where available. Tonnes CO2 equiv emitted Country Scope 1 Scope 2 Argentina 830 4,600 Australia 70 1,100 Austria 1,200 0 * 100% renewable Belgium 49,000 42,000 Brazil 108,000 54,000 Canada 4,700 65,000 China 97,000 15,000 Colombia 0 1,600 Denmark 27,000 13,000 France 18,000 27,000 Germany 53,000 75,000 India 130 2,500 Indonesia 11 1,000 Italy * 100% renewable Japan ,000 Korea 2,700 17,000 Luxembourg 52,000 32,000 Mexico 118, ,000 Netherlands 489,000 15,000 Russia Saudi Arabia Singapore 16,000 6,300 Spain 33,000 32,000 Sweden 660 4,000 Switzerland * 100% renewable Taiwan 160,000 34,000 Turkey UK 6,700 14,000 United States 7,740,000 2,530,000

10 b Facilities: For facilities covered by the EU Emissions Trading Scheme (EU ETS). Please also include the number of allowances you were issued under the applicable National Allocation Plans. Country EU ETS Allocations Tonnes CO 2 Germany 63,500 Luxembourg 59,400 Netherlands 227,300 Spain 90,700 c EU ETS impact: What has been the impact on your profitability of the EU Emissions Trading Scheme? The EU Emissions Trading Scheme has had negligible impact on the profitability of the corporation. 4 Greenhouse Gas Emissions Management a i Reduction programmes: What emission reduction programs does your company have in place? Please include any reduction programs related to your operations, energy consumption, supply chain and product use/disposal. What is the baseline year for the emissions reduction program? The baseline year for the overall greenhouse gas emissions reduction program has been Last year we initiated a new round of GHG reductions using 2004 emissions as the baseline. ii What are the emissions reduction targets and over what period do those targets extend? In 1999 DuPont established the goal to reduce our greenhouse gas emissions by 65% from a 1990 base. By the end of 2003 we had reduced our greenhouse gas emissions by 72%. In 2004 we sold the Invista business. If we calculate our 1990 base year and 2004 emissions without the Invista business, our total reductions were 56%. By 2015, we will further reduce our greenhouse gas emissions at least 15% from a base year of iii What investment has been/will be required to achieve the targets and over what time period? The cost to achieve the reductions in greenhouse gas emissions through reductions in CFC, HFC, N 2 O and CO 2 emissions and through energy efficiency programs to date is estimated to approach US$100 million. DuPont historically has not tracked investment attributable to greenhouse gas reduction projects formally. Often CO 2 emissions reductions and energy efficiency improvements are achieved as components of larger projects; and often as locally expensed programs. There has been no practicable means or reason to roll-up these costs. Looking forward, DuPont is scoping out its options for achieving the current goals through our Corporate Environmental Plan process. A complete set of alternatives for fully achieving the goals has not yet been developed, so that future investment and cost has not been estimated. iv What emissions reductions and associated costs or savings have been achieved to date as a result of the program? Ex Invista, which was sold in 2004, greenhouse gas emissions have been reduced from 34 million tonnes CO2 equivalents in 1990 to 14.9 million tonnes in 2004 (56% reduction from 1990 to 2004) and 12.1 million tonnes in 2006 (a total of almost 65% over the entire period). (Refer to the response to 4.a.ii. for further detail on the GHG reductions.) The accumulated cost savings from the energy conservation activities accomplished since 1990 is estimated to exceed $3 billion by the end of Additional modest revenue gains have been achieved through emissions trading activities both in regulated and voluntary markets. For a discussion of savings through energy efficiency improvements, refer to the response to

11 4.a.v., below. v What renewable energy and energy efficiency activities are you undertaking to manage your emissions? In addition to setting greenhouse gas reduction goal, DuPont has set a goal to hold energy flat on an absolute basis from 1990, and a goal to source at least 10% of our energy from renewable sources by The former goal will assure that gains in GHG emissions through improved efficiency and through reductions in non-co2 GHGs are not offset by increased energy use. The latter goal will contribute to energy-based GHG reductions since there will be lower (or, in some cases, zero) net CO2 emissions associated with such energy sources. In addition, the Corporation has initiated an Energy Set-Aside reserving a portion of our annual capital budget for energy efficiency improvement projects in addition to those funded by the respective businesses through their routine budgeting processes. Through this Energy Capital Set-Aside Program and an associate Energy Breakout Program, significant year-over-year savings have been realized. For example, it was estimated that the year-over-year savings for 2005 vs was US$32 million and for 2006 vs was US$28 million through energy projects. DuPont provides recognition to its employees for developing innovative programs that reduce energy use and greenhouse gas emissions. Some recent examples: Employees from the DuPont Titanium Technologies business established a comprehensive energy network that, since 2001, has spearheaded the reduction of unit energy by 20% and CO2 reduction by 13% as compared to 1990 levels while saving the business US$12 million per year. Employees at a site in Germany implemented a co-generation project at the site that can utilize woodchips as a renewable fuel source, therefore reducing CO2 emissions by over 15,500 tonnes per year and saving over US$260,000 per year in reduced energy costs. A team of Solae (a DuPont joint venture) employees in the US developed a multi-party contract, including public and private entities, to use landfill gas to replace natural gas to fuel the site boilers. Fossil fuel use is reduced 25% and CO 2 emissions are reduced while generating a US$3 million per year energy savings. Employees in the DuPont Nonwovens business in Europe developed Tyvek Reflex, a unique solution to protect and improve the moisture and thermal performance of buildings. The product reduces the heating bill of the average home by 13%, reduces CO2 emissions by an average of nearly 15 tons per building. DuPont entered into a contract to purchase the equivalent of 15 million kwhrs per month (180 million kwhrs annualized) beginning October 1, The contract will carry through 2007, at which time the Corporation will decide whether it is appropriate to continue such REC purchases. DuPont has participated in, and continues to participate in the international scientific study of climate change. We believe there is need for prudent action. We began taking action to reduce greenhouse gas emissions in the early 1990s, and have accomplished major global reductions and set ambitious goals for the current decade. These early actions have positioned DuPont to influence the development of public policy measures addressing climate change. In addition, DuPont has recognized significant business opportunities in developing new products to help our customers improve their energy efficiency and reduce their greenhouse gas impacts down the value chain. We have participated in the U.S. EPA Climate Wise program since 1994 and as members of the Business Environment Leadership Council of the Pew Center on Global Climate Change since In addition, DuPont is a charter member of the Environmental Defense Partnership for Climate Action and the World Resources Institute (WRI) Green Power Market Development Group, both since DuPont has been a key contributor to the World Resources Institute s Greenhouse Gas Protocol and has participated in pioneering efforts to establish trading mechanisms for greenhouse gas emissions reduction credits. We continue to

12 support the development of responsible public policy and market-based trading systems to encourage the reduction of greenhouse gas emissions. We became a charter member of the Chicago Climate Exchange in 2002 and participated in its first auction. In 2006, DuPont joined the EPA Climate Leaders and made a commitment to Phase II of the Chicago Climate Exchange trading program. b Emissions trading: What is your company s strategy for trading in the EU Emissions Trading Scheme, CDM/JI projects and other trading systems (e.g. CCX, RGGI, etc), where relevant? DuPont sees a bright future for cap and trade of emissions, as a means of using the free market system to reduce GHG emissions. DuPont is a founding member of the Chicago Climate Exchange. Our strategy around carbon trading is to learn and help establish, by example, how a trading scheme can effectively function to decrease GHG emissions through a market-based system. We also have a responsibility to our shareholders to get financial return on the investment for reducing GHG emissions. Our participation in trading schemes demonstrates to other companies that early action is rewarded by the market place, which encourages others to follow in our footsteps. Additionally, our involvement brings more players to the table to engage in action and dialogue. In the EU, DuPont has sufficient credits for compliance and therefore have sold surplus credits in the past. Our conclusion is that what s good for the environment can also be good for the bottom line. c Emissions intensity: Please state which measurement you believe best describes your company s emissions intensity performance? What are your historical and current emissions intensity measurements? What are your targets? DuPont has set its greenhouse gas emissions reduction goals and its energy use goals on an absolute basis. That is, while we intend to grow the corporation, we intend to reduce our overall GHG emissions and to hold energy use flat. While GHG intensity is not a metric or a target for the corporation, we are able to provide a GHG intensity value normalized to annual production (e.g., in metric tonnes CO2 equivalent emissions per metric tonne of product), as shown in the table and figure below: GHG Intensity Year tonne CO2 Eq/ tonne production

13 DuPont Greenhouse Gas Intensity Since GHG Intensity tonnes CO2 Eq/ tonne production Year d Energy costs: What are the total costs of your energy consumption e.g. from fossil fuels and electric power? What percentage of your total operating costs does this represent? Total cost for fossil fuels and electric power was US$890 million in 2006, 3.5% of total operating costs and other expenses. e Planning: Do you estimate your company s future emissions? If so please provide details of these estimates and summarize the methodology for this. How do you factor the cost of future emissions into capital expenditure planning? Have these considerations made an impact on your investment decisions? Future global greenhouse gas emissions estimates are simply based on the 2015 goal for GHG reduction identified above. All capital projects are run through the DuPont Gate Review Process, which includes a ten-step process set forth in the DuPont Project Environmental Guidelines (PEGs) that are conducted throughout the front-end loading stages of a project. The PEGs steps include reviews to assure energy efficiency, environmental stewardship and other aspects of our sustainability commitment. In the case of major projects, it is common for Life Cycle Assessments to be performed, including estimations of greenhouse gas impacts in manufacturing and down the value chain. As a whole, investments are made that will assure that the Corporation s Sustainability Goals will be achieved. 5 Climate Change Governance a. Responsibility: Which Board Committee or other executive body has overall responsibility for climate change? What is the mechanism by which the board or other executive body reviews the company s progress and status regarding climate change? The Board of Directors has an Environmental Policy Committee, chaired by William Reilly, former administrator of the U.S. Environmental Protection Agency. This Committee is responsible for reviewing the company s environmental policies and practices including our

14 response to the issue of global climate change. The Global Vice President of Operations has corporate responsibility for managing and overseeing the corporate programs on energy conservation and climate change, including greenhouse gas emissions reductions and emissions trading opportunities. The Vice President and Chief Sustainability Officer and Chair of the DuPont Climate Change Steering Team, has corporate responsibility for climate change related policies, positions and advocacy. In addition, the heads of each business platform in DuPont are responsible and accountable for ensuring their businesses contribute to the successful attainment of corporate goals for greenhouse gas reductions and energy efficiency and seek appropriate business opportunities to help customers and consumers address the challenge of climate change through innovative products and services. b. Individual Performance Do you provide incentives mechanisms for managers with reference to activities relating to climate change strategy, including attainment of GHG targets? If so please provide details. In addition to the employee s contribution to the Company results, a factor in determining individual performance is a qualitative assessment of performance on the Company s core values including environmental stewardship. June 1, 2007