Prepared By:

3Ms Business Units

Humble Beginnings

Today..
.

Corporate Governance
Corporate governance is the system of
rules, practices and processes by
which a company is directed and
controlled.

3M Organisation Structure

Corporate Governance
12/13 directors are independent of
the Company and management
Regularly meet in executive sessions
without management
All are highly qualified
They have complete access to
management and employees
Regularly refresh board; added 6
new directors in past 4 years;
average tenure is 6.8 years

Corporate Governance
Each year management presents to the Board, and the Board
discusses and approves:
an overview of the business group, the financial performance,
an assessment of the portfolio for growth opportunities using a
SWOT analysis
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; and
the projected long-term financial performance.
The Board also approves the long-term capital structure of the
Company to ensure that there is sufficient capital to invest for
future growth.

Participation/Responsivene
ss
Stockholders and other
interested parties may
communicate by sending
a letter to the Board

Responsiveness/Accountabil
ity/
Transparency
3M maintain a vigorous stock-holder engagement program

members of senior management met with a cross-section of

stockholders owning approximately 35 percent of our
outstanding shares.
The feedback was shared with the Board which help inform the
Boards decision to adopt proxy access bylaws

Sustainability
Board orientation familiarize new directors with 3Ms businesses,
strategic plans, and policies, and prepare them for their role on their
assigned committees.
Continuing education programs assist directors in maintaining skills
and knowledge necessary for the performance of their duties.

Efficiency and effectiveness

The Boards leadership structure is characterized by:
a combined Chairman of the Board and CEO;
Lead Director
independent directors with oversight of various types of risks; and
CEO is best positioned to chair regular Board meetings as the
directors discuss key business and strategic issues.
Lead director provides independent oversight while avoiding
unnecessary confusion regarding the Boards oversight
responsibilities and the day-to-day management of business
operations.

Accountability/Transparency

Board and Committee Evaluations

The Nominating and Governance Committee conducts an annual
evaluation of the performance of the Board and each of its
committees. The results are shared with the Board and help
identify areas in which the Board and its committees could
improve performance.
As part of the nomination process, the Nominating and
Governance Committee annually evaluates each of the directors
to ensure their directors have the necessary skills and experience
to effectively oversee the Company.

2015
Sustainabilit
y Report

3m Sustainability Efforts
Awards
Ranked
21st
worldwid
e

3M Green Initiatives
Help municipalities implement recycling programs through the Closed
Loop Fund invest $100 million to protect the environment,
generate revenue for cities and create thousands of jobs
Made an agreement to purchase electricity from a wind farm,
helping us work toward our renewable energy goals for 2025.
Implemented a revised pulp and paper sourcing policy providing
leading-edge protection for forests, critical habitats and forest
communities worldwide.
During 3Ms Global Volunteer Day, 3Mers from 80 international
locations renovated schools, built outdoor learning centers and
engaged thousands of students on the power of science to improve
lives. This supports our broader work to encourage young people to
enter STEM-related fields.
Pollution Prevention Pays (3P) program celebrated its 40th
anniversary - prevented over 2.1 million tons of pollution and
saving nearly $2 billion (USD) since 1975.

3m Closed Loop Fund

3M committed $5 million to the Closed Loop Fund (CLF), a collaborative social

impact fund supported by leading companies that provides municipalities
access to capital needed to build comprehensive recycling programs
The fund aims to
(1) achieve a reduction of more than 75 million tons of greenhouse gas emissions,
(2) divert 27 million cumulative tons of waste from landfills,
(3) create 27,000 new local jobs,
(4) help municipalities save more than $1.9 billion in waste disposal costs, and
(5) provide packaged goods companies with much greater access to recycled
materials.

3P Program

Based on the reality that pollution prevention is more environmentally effective,

technically sound and economical than conventional pollution control equipment
3P seeks to eliminate pollution at the source through product reformulation, process
modification, equipment redesign, and the recycling and reuse of waste
materials
Employees from any level and area of the company may propose 3P projects as long as
it fulfills any of the following objective:
Eliminate or reduce a pollutant
Benefit the environment through reduced energy use or more efficient use of
manufacturing materials and resources
Save money - through avoidance/ deferral of pollution control equipment costs,
reduced operating and materials expenses, or increases sales of an existing/ new
product

Triple Bottom Line Reporting Metrics

Economic
Market
performance - Profit,
earning per share
Indirect economic
impacts - standard
of living of
communities

Environmental
Energy - Reduction of
energy consumption
Water - Percentage
and total volume of
water recycled and
reused
Waste - Total weight of
waste by type and
disposal method
Emissions - Direct
GHG emissions
Compliance - Fines
paid for non-compliance
with environmental
regulation

Social
Human rights - % of
new suppliers
screened using
human rights criteria
Anti-corruption - %
of operations
assessed for risks
related to corruption
Labor management
- % of female
employees in
management position

Triple Bottom Line Reporting Impact

Market Performance
Earnings per share
increased 1.2
percent to $7.58 per
share
Operating income
margins increased
0.5% points year on
year to 22.9 percent
Organic local-currency
sales growth
increased 1.3%
worldwide
$7.8 billion was
returned to
shareholders through
dividends paid and
share repurchases

Indirect economic impacts

Annual social
investments in our
global communities
Investment strive to
increase access and
student achievement in
STEM, improve
standards of living in
communities where
they operate, and build
environmentally
sustainable
communities
Investments and
programs aligned
community outcomes to
business strategies

Greater Twin Cities

United Way
Centennial Campaign
3Mers across the
country invested $6.1
million and the
company matched
those dollars
resulting in 3M giving
a total of $15 million
to more than 2,500
agencies and projects
Impact more than
1million lives in
150 communities
were improved

Triple Bottom Line Reporting Impact

Energy
Improve energy
efficiency 25% by 2015
from 2005 base year,
indexed to net sales
Water
Develop water
conservation plans in 3M
locations where water is
categorized as scarce orin
a stressed area
Waste
Reduce waste 10% by
2015 from 2010 base year,
indexed to net sales

Emission
Reduce volatile air emissions
15% by 2015 from 2010
base year, indexed to net
sales
increasing the use of more
sustainable raw materials
and water-based coatings
Implementing and
maintaining pollution
control technologies
Reduce greenhouse gas
emissions 5% by 2011 from
2006 base year, indexed to
net sales

Compliance
Report environmental
exceedances, spills, agency
notices and fines through
the 3M's Worldwide
Incident Management
System (WIMS)
Paid $43 million for
estimated environmental
remediation costs
Paid $35 million for other
environmental liabilities for
trace amounts of
perfluorinated compounds
in drinking water sources in
Minnesota

Triple Bottom Line Reporting Impact

Human Rights
Apply a global
minimum hiring age
of 16
Screen 100% of new
suppliers
Periodically monitor
existing suppliers
performance against
our supplier
expectations
Implemented a riskbased supplier
assessment process to
help assure that its
suppliers meet
expectations

Anti-corruption
Communicate anticorruption policies and
procedures to all
employees
Global Bribery and
Corruption
Awareness training
for employees in higherrisk roles
Anti-Bribery
certification in the
Annual Code of Conduct
Annual certification
process
Audit Committee of
the Board receives at
least quarterly updates

Labor Management
Percentage of
Female Employees
in Management
Positions
increased
3M was recognized
as a best place to
work for LGBT
Equality
In 2015 alone, 3M
employees
completed
1,289,932
courses