CONFIDENTIAL

May 12, 2014

Retailer Sustainability Initiatives and Sustainability Scorecards

Dave Aupperlee Sr. Mgr. Product Testing, Safety, and Regulatory Affairs

BISSELL celebrated its 137th

anniversary on September 19, 2013.

The company, in its fourth generation of

family leadership, is the seventh oldest

privately held manufacturing company

in the United States.

Anna Bissell was America’s first female

corporate CEO.

ABOUT BISSELL INC.ABOUT BISSELL INC.

Confidential 2

BISSELL LOCATIONS AROUND THE GLOBE BISSELL LOCATIONS AROUND THE GLOBE

Reynosa Mexico

McAllen Texas

Hong Kong

London U.K.

Mississauga Canada

Melbourne Australia

Grand Rapids Headquarters

BHC U.A.E. Gwangju

South Korea Shenzhen

China Dubai U.A.E.

Asia Development

Asia Development Center - Shenzhen Manila, Philippines

Customer Service Manila, Philippines

Confidential 3

BISSELL HOMECARE, INC.BISSELL HOMECARE, INC. GRAND RAPIDS, MI (BHI)GRAND RAPIDS, MI (BHI)

400 Associates Manufacturing Processes:

– Blow molding

– Chemical packaging

450,000 sq. ft.

PRODUCT CATEGORIESPRODUCT CATEGORIES

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Vacuums Deep Cleaning Chemicals Hard Surface Simple Clean

OUR CUSTOMERSOUR CUSTOMERS

Mass Merchants – Walmart, Target, Kmart, Meijer, Shopko

Electronics – Best Buy

DIY – Lowe’s, Menards, True Value

Specialty/Dept Stores – Bed Bath & Beyond, Kohl’s, Sears

Warehouse Clubs – Costco, Sam’s, BJ’s Wholesale

.com – Amazon, all major retail sites

More!

COMMITMENT TO SUSTAINABILITYCOMMITMENT TO SUSTAINABILITY

1) Efficient use of resources in our products and operations

2) Responsible use of chemicals, and transparent reporting of product ingredients

3) Responsible management of waste throughout a product’s lifecycle

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PLANT AND OFFICE SUSTAINABLE PLANT AND OFFICE SUSTAINABLE PRACTICESPRACTICES

• Plant lighting upgrades

• Rainwater recovery system

• HVAC improvements. Under floor heating & cooling

• Automatic faucets, urinals and WC’s

• Office waste separation: compost, recycle, trash

• Cafeteria: Compostable dinnerware, separation of waste streams

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OTHER BISSELL INITIATIVES

Sustainable Product Design • 100% recycled material in consumable corrugate

packaging

• 75% recycled material out of Asia in durable packaging

• Elimination of over 1 million pound of EPS foam packaging (< 3% of products have any EPS foam)

Product Recycling • Remanufactured 240,000 units in 2013

• Vacuum and Deep Cleaner accessories are made of 100% recycled materials

• 30% recycled content in consumables bottles

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OTHER BISSELL INITIATIVES

Partnerships & Community Involvement • US EPA DfE certified products

• CSPA Product Care Program

• SmartWay-collaboration between EPA and the freight industry “getting there with cleaner air”

• Leadership on AHAM Sustainability Standard Task Force

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• WMSBF February 2014 Monthly Meeting

• Andy Hoffman, UoM, The Fourth Wave

• “Sustainability becomes translated into a business issue.”

• Consumers are looking to business - not activists, not gov’t, not NGOs – to solve ecological problems.

• Hoffman predicted the idea that we may be entering a fourth wave with knowledge about the Anthropocene*. Environmentally-friendly business practices will have to shift from simply thinking about reducing unsustainability to actively thinking about incorporating sustainability on an overall systems level, from the ground up.

*Anthropocene—an epoch in which it is impossible to describe the global ecosystem without including humans and the changes they have created.

EMERGING RETAILER SUSTAINABILITY INITIATIVES

EMERGING RETAILER SUSTAINABILITY INITIATIVES

https://www.youtube.com/watch?v=vrNGaFgditU

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Trish Wheaton CMO

Wunderman Managing Partner Global New Business

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• Trish Wheaton: Emergence of “Generation World”, the rise of the socially conscious consumer

• Not necessarily the Millenials

• People who like to consume, but care about the environment

• Faith in government is eroding

• They expect companies and brands to solve social and societal and environmental problems

• Communicate environmental responsibility through labeling and the internet: IF YOU DO IT, SAY IT

• Days of the “green hush” are over

EMERGING RETAILER SUSTAINABILITY INITIATIVES

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• Walmart

• Kohl’s

• Target

• Lowes

• Sears Holdings

• Chain Drug Stores

• RILA – Retail Industry Leaders Association

EMERGING RETAILER SUSTAINABILITY INITIATIVES Sustainability Scorecards

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• Sustainability Goals

– 100% Renewable Energy

– Zero Waste

– Sell Products That Sustain People and The Environment

• Walmart Sustainability Hub

– www.walmartsustainabilityhub.com

• Walmart Sustainability Index

– Based on Key Performance Indicators (KPIs) developed by The Sustainability Consortium (TSC)

EMERGING RETAILER SUSTAINABILITY INITIATIVES

Sustainability - Walmart

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• KPIs developed by TSC for over 200 categories of merchandise

• TSC is a multi-stakeholder organization: Academia, NGOs, Industry

• The Sustainability Index for a given category asks numerous questions targeting impacts on social and environmental KPIs

• Operations, record-keeping, company goals, supply chain considerations

EMERGING RETAILER SUSTAINABILITY INITIATIVES

Walmart Sustainability Index

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• What is your organization's approach to managing conflict minerals in your product supply chain? *

• To what extent has your organization optimized transportation and logistics to minimize energy use? *

• What percentage of your small appliances sold have power management or energy efficient attributes?

• Do you track energy consumption at the manufacturing facilities that produce small appliances and small appliance components? *

• What is your organization's approach to managing polyvinyl chloride (PVC) within your supply chain? *

EMERGING RETAILER SUSTAINABILITY INITIATIVES Sustainability Index Questions – Portable and Floor Care Appliances

Walmart Sustainability Index 2013

How does BISSELL measure up?

• Durables

18 * Among floor care suppliers, BISSELL was ranked No. 1

*

Walmart Sustainability Index 2014

How does BISSELL measure up?

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Opportunities for Improvement

Making Incremental Gains

Durables • Track GHG emissions in manufacturing

• Reduce energy during use, at no penalty to performance

• End of life considerations

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• “Sustainability means different things to different people, all valid.”

• “If it doesn’t pay, it’s not sustainable.”

• “We don’t believe our customers should have to choose between affordability and sustainability.”

• “All vendors were saying they were sustainable. The Index helps identify areas for improving impact.”

• “This is how we grow relevance with the next generation.”

Comments from Walmart

Walmart Sustainability Index

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THANK YOU