Sustainability Quotient Program More companies are realizing the benefits of incorporating sustainable practices, noting that it can improve the bottom line, mitigate potential risks and build customer loyalty. However, measuring the progress of corporate sustainability goals and communicating related achievements has been difficult. As sustainability becomes integrated into the normal course of business, communication of these targets and goals has a greater importance. Verification of the data used to do so become essential. To help businesses bridge this gap and build a foundation for sustainability performance measurement, UL Environment developed a comprehensive UL ISR 880 Domains 1 Environment 2 Workforce 3 Sustainability Governance 4 Community Engagement and Human Rights 5 Customers & Suppliers sustainability standard. The organization-wide sustainability standard sets the requirements for third-party verification of an organization’s sustainability practices. According to a 2010 study of CEO perceptions of sustainability issues, 93% of those surveyed believe that sustainability issues will be critical to the future success of their business. The Sustainability Quotient (SQ) Program is a comprehensive enterprise-level sustainability program from the global leader in independent third party certification, UL (Underwriters Laboratories). The program enables the assessment of an enterprise’s sustainability efforts, as defined in the program’s standards, to measure results and identify opportunities to drive improvement and lasting sustainability practices. The SQ Program integrates corporate sustainability best practices through a range of services based on the SQ sustainability standards. The standard includes five domain areas that address the governance for sustainability, environment, work force, customers and suppliers, and community engagement and human rights. UL, the UL logo and the UL certification mark are trademarks of Underwriters Laboratories Inc. © 2011 9/11 BDI 110818v2 SQ Program Overview: Enterprises can engage in the program through certification and the service areas described below. A typical path toward certification includes the following steps. Kickoff: The applicant will work with UL Environment to identify the organizational boundary and type of certification: full or focused. Verification: The applicant company provides requested data and other evidence to the auditors for review. Applicant personnel will be available to support the on-site assessment interviews as needed. Auditors will complete a procedure report and submit that jointly to UL Environment and to the Applicant; Certification: UL Environment will review the agreed-upon procedures report; certify the results, delivering a certification report and certificate that authorizes the company to use the certification badge on its corporate level materials per the terms of use guidelines. SQ Readiness Assessment: Allows companies to gauge their degree of readiness to progress towards certification through prerequisite and core sustainability indicators. Once the assessment is completed, the company receives a detailed report indicating gaps between the enterprise’s existing program and the requirements of the SQ program standard for purposes of certification. SQ Focus Area Certification: Focus area certification offers companies the option to concentrate sustainability efforts on a particular domain area. In the first year the manufacturer may opt to focus on the environment domain while adding the governance and workforce domain areas the next year. There is the option to complete focus area certifications and build upon that to achieve full certification. SQ Full Certification: Companies can achieve full SQ certification by meeting the requirements in all five domain areas for a single or multiple business units. Both the full certification and focused certification paths require a third party audit. Companies that achieve full certification receive the SQ mark for marketing and promotional purposes. ULE 880 Scoring Structure: About UL Environment UL Environment supports the growth and development of sustainable Leadership Indicators products, services and organizations in the global marketplace through Core Indicators standards development, educational Prerequisites To receive a Certified Score, companies must meet all prerequisites and achieve points in each of the core indicators services and independent third-party assessment and certification. Specific environmental solutions services UL Environment provides include environmental claims validation, sustainable products certification, organizational sustainability Inventories and Baselines > Policies and Procedures > Performance > Reporting guidance, environmental product declarations and advisory services. Additional information about UL Environment can be found at SQ Analytics ulenvironment.com. Or follow UL SQ Analytics provides companies with a detailed benchmark and gap analysis Environment news and education of their sustainability initiatives against the program standards. This service tips on Twitter @ulenvironment. is best suited for companies that have specific objectives in mind above and beyond eventual certification such as merger and acquisition assessment or targeted risk mitigation. About UL UL is a premier global safety science Supply Chain Support Services This service provides support to enterprises that seek to use the SQ program and standards as a foundation for how they interact with their supply chain. Supply Chain Support Services can be highly customized to meet specific needs in assessing supply chains from a sustainability perspective. Training company with more than 100 years of proven history. Employing more than 7,000 professionals in over 100 countries, UL is evolving the future of safety with five distinct business units — Product Safety, Environment, Life & Health, Verification and Specialized training programs are offered to employees in companies University — to meet the expanding seeking to become SQ certified as well to sustainability consultants and needs of customers and the global auditors interested in working with manufacturing companies pursuing SQ public. For more information on UL certification. Once an auditor or consultant goes through the required UL services, visit UL.com. training program, they become SQ qualified and can work directly with the companies engaged in the SQ Program. For more information contact Craig Coulter at 717.860.6044 or e-mail craig.coulter@ulenvironment.com UL, the UL logo and the UL certification mark are trademarks of Underwriters Laboratories Inc. © 2011 9/11 BDI 110818v2 UL and the UL logo are trademarks of Underwriters Laboratories Inc. © 2011. All rights reserved. 8/11 BDI 110818