Performance That Endures

Sustainability

• Many definitions• New term – old concept• Triple Bottom Line - economic,

environmental, and social balance

John Deere Values

• “I will never put my name on a plow that does not have in it the best that is in me.”

• Integrity, Quality, Commitment

John Deere History – Worker Safety

• 1901--Worker Compensation introduced 10 yrs ahead of State Laws

• 1947--Corporate Industrial Safety Dept established

• 1975—Safety program established in Total Quality Mngt. framework resulting in continuous

improvement through 2002• 1983—Off-the-Job Safety Program introduced • 1984—Ergonomics program formally introduced• 2000 – ZERO Safety Incident Goal established

John Deere History - Product Safety• 1938 Product Safety Committees Formed• 1940 PTO shields made standard on tractors and

retrofit program established • 1963 Starting interlock for lawn & garden tractors• 1966 ROPS introduced• 1972 ROPS retrofit option provided for most post -

1960 tractors• 1984 Bypass Override Valve developed and

introduced• 1990 Operator presence system for cotton pickers

established• 1999 New Turn-signal modules introduced for

lighting and marking tractors and implements

John Deere History - Environment

• 1920 First cloth screen exhaust filters installed• 1936 First foundry with complete mould and core and

finishing dept dust control system• 1949 First boiler emission control system• 1957 Deere adopts strict water effluent standards• 1962 First pollution prevention projects involving cyanide

elimination installed. • 1967 First Corporate environmental policy established• 1973 Formal Energy Management program started• 1981 Pollution Prevention program installed• 1993 Chlorofluorocarbons eliminated as a refrigerant for

all product A/C systems• 2000 Soybean used as base material for sheet molded

panels

John Deere Today

Mannheim, Germany

Richards Bay, South Africa

Nigel, South Africa

Pune, India

Beijing, ChinaJiamusi, China

Stadtlohn, GermanyGummersbach, Germany

Horst, NetherlandsEnschede, Netherlands

Bruchsal, Germany

Zweibruecken, Germany

Arc-les-Gray, France

Saran, France

Madrid, SpainSantiago, Chile

Catalao, Brazil

Horizontina, Brazil

Rosario, Argentina

Saltillo, MexicoMonterrey, Mexico

Torreon, Mexico

Valley City, ND

Fargo, ND

Minneapolis, MN

Dubuque, IAHoricon, WI

Waterloo, IA

Moline, ILEast Moline, IL

Welland, Ontario

Edmonton, Alberta

Davenport, IA

Des Moines, IA

Langley, British Columbia

Ottumwa, IA

Springfield, MO

Coffeyville, KS

Thibodaux, LA

Raleigh, NC

Greeneville, TN

Redondo Beach, CA

Augusta, GA

Springfield, ILToano, VA

Santo Angelo, Brazil

Filipstad, SwedenJoensuu, Finland

Woodstock, OntarioRock Valley, IA

Klemme, IA

Paragould, AR

Melbourne, Australia

Tokoroa, New Zealand

*

Tianjin, ChinaPiqua,OH

Burnsville, MN

Jeffersonville, INAlpharetta, GA

Exeter, England

2001 Sales: $13.3 Billion

Agricultural 47% Construction & Forestry 16%

Commercial & Consumer 20%

Credit 11%

Other 6%

Sustainability Today

• Agriculture - provide customers with tools to meet demands for less intensive, less intrusive farming• No till planting• Precision farming• Soybean based plastics

Sustainability Today

• Forestry - provide products with less impact on forest during logging• Life cycle assessment – tree harvester• Recyclability analysis – feller/buncher• Operator training• “Walker”

Recognition

• Crain’s Chicago Business - named John Deere lllinois’ most-trusted company; in a nation-wide survey, Deere beat 13 other prominent companies

• Business Ethics magazine - named Deere one of its 100 Best Corporate Citizens for 2002, ranking the company 64th on its annual list

• Manager of the Summit Total Social Impact Fund, a Cincinnati-based mutual fund, recently ranked Deere among the top five companies in the S&P 500 for its ethical behavior

John Deere’s Challenge

• “Build a business as good as our products” –Bob Lane, CEO

• Improve performance, but• “Performance that Endures”

Global Challenges

• Machine recyclability – steel vs. plastic• Machine safety – ROPs in India• Facility location – brownfields in China• Rapid changes• Employee turnover

Integration with Key Business Processes

• Business Conduct Guidelines• Environmental Policy• Environmental Management System• Auditing and evaluation• Standards and Guidance

Introducing Sustainability

• Should the term “sustainability” be used? • Work within the processes & structures

already in place. • Three Distinct Entry Points:

• Long Range Planning• Environmental Management System• Supply Management

A Range of Approaches to Sustainable Development

Thrust Stay withthe pack

Take thehigh road

Costleadership Differentiation Growth

Questions

Action

Should I do anything?

Wait and see;track the

issues

How can I better alignwith stake-

holders

Strengthencommunities

and environmental

protection

How can I get cost

advantage?

Improveeco-efficiencyof processes

How can Icapitalizeon SD?

Createproducts andservices with

uniquecharacteristics

How can Ileverage SD totransform theorganization?

Leverage SDto better learninnovate, andmanage for the future

Introverts Extroverts Bottom-liners Top-liners Transformers

Understand Your Reality

• Understand your company impacts• Understand your customer impacts• Understand the forces that will shape the

future for you and your customers• Identify your strengths

Final Thoughts

• Focus on core values• Focus on your markets and

customers• No guarantee

• Technologies• Culture

Nothing Runs Like a Deere