AHC Group 15th Annual
Corporate Affiliates Workshop Series

"Achieving Results: In Corporate Strategy Today"

Agenda

January 26-27, 2006
Pointe Hilton Squaw Peak Resort
Phoenix, Arizona

(View all biographies of January 2006 workshop speakers and chairs.)

Day One: Thursday, January 26th

Management Risk Reduction and Site Remediation Workshop: 8:00am-12:00pm

Workshop Chair: Dwight Bedsole, Senior Director at DuPont

For the last four years, Dwight Bedsole has chaired this ongoing AHCGroup workshop on site remediation programs and policies, emerging issues, and new risk management tools. This has become a widely respected workshop transacted with insight and confidentiality. This workshop has transformed over the years and now focuses on a broader topic range to also include Operational and Management Risk Reduction strategies and case presentations. As Dwight keenly remindes those of us in the unique field of Site Remediation, "We are in a business unlike any other, as we are in the business of putting ourselves out of business."

This engaging workshop now involves over 62 of the leading multinationals in the world. The key speakers for our January 26-27 workshops include:

• Arden Ahnell — Functional Integration Manager, Remediation Management at BP:
  
  BP's Remediation Management; Maturing from a Support Service into an Integrated Function
  
  Learn about the journey BP's remediation group(s) took from different support organizations in several heritage companies to a highly accountable function which is well integrated into BP Group's global organization. BP and remediation management went through significant change as BP grew to a $250B company. The broader change in BP provided challenges and opportunities for the remediation organization to grow and add value as BP's concepts of organization and governance changed to accommodate the new BP scale and scope. Remediation Management's accountabilities and scope changed accordingly and required new organization, new processes, and new skills to adapt.
  
  Introduction by: Dhamo Dhamotharan — Senior Vice President, Central Division at URS
  
  
• Phil Hillman — Divisional VP, Health, Safety & Environment at Polaroid Corporation:
  
  Understanding the Impacts of WEEE and RoHS Compliance Across the Electronics Supply Chain
  
  Phil will help us identify the positive and negative impacts of WEEE and RoHS on the organizations' internal structure along with an investigation into the influence they will have on the global environment. Phil will then help us take the final step of identifying the deficiencies within your compliance strategy to maintain the integrity of your implementation processes.
  
  Introduction by: TBA
  
  The WEEE and RoHS Directives will contribute towards a better environment but will have significant implications for electrical and electronics companies in terms of marketing, design, manufacturing and "end-of-life" recovery and recycling. The Directives on Waste Electrical and Electronic Equipment (WEEE), 2002/96/EC, and the Restriction of Use of Certain Hazardous Substances (RoHS), 2002/95/EC, will require "producers" to recycle waste electrical/electronic equipment and remove certain hazardous substances.
  
  
• Bob Goldman — CEO /Chairman of the Board at Blasland, Bouck & Lee and Charles A. Pittinger, Ph.D. Senior Toxicologist, BB&L Sciences:
  
  REACH and other European Union Directives of Consequence
  
  Bob and Charlie will provide a top-level executive briefing on European/Global Directives that are changing the regulatory landscape. This overview will address the key EU Directives in terms of their scope, timing, and potential to impact the multi-national business community as represented by your membership. These would include: REACH, GHS Hazard Classification and Labeling, and the Biocides, Cosmetics, Water Framework, Environmental Liabilities, and Restriction of Hazardous Substances Directives.
  
  Hear BBL's insights into such questions as; What are the likely business implications to the industrial sectors likely to be most affected, including their upstream supply chain and downstream user communities?
  
  How will the Canadian Domestic Substances List, which will influence REACH implementation? Also of interest are the emerging regulations in the Asia-Pacific region. How might these regulations impact your entry into this vast emerging consumer market?
  
  What are the "de facto" regulations that are raising the high bar in chemical assessment and management? e.g.: High Production Volume Chemicals; Persistent, Bio-accumulative and Toxic Substances; Persistent Organic Pollutants (from the Stockholm Convention and Rio's Agenda 21); Eco-labeling and green procurement programs being dictated by governments at all levels.
  
  Introduction by: Dwight Bedsole — Senior Remediation Director at DuPont, and Workshop Chair
  
  
• Mike Csedrik — Head of Management Systems and HOS Integration at Honeywell:
  
  Cultural Evolution at Honeywell ignited by two significant global initiatives…The Honeywell HSE Management System and the Honeywell Operating System
  
  Hear how two Honeywell functions learned the same lesson at roughly the same time. That is, true and sustainable performance excellence whether you're talking HSE, quality or cost, cannot be achieved by programs and tools alone. Developing and maintaining a world class management system and culture is the next key differentiator at Honeywell. Benchmark companies such as Toyota and Nissan use the same Six Sigma and Lean tools used at Honeywell for more than a decade. Their differentiator is a disciplined culture driven by a management system that standardizes work and involves employees in improving work processes. Last year two Honeywell organizations, HSE and Integrated Supply Chain, embarked on similar journeys…development of performance management systems. Hear how the two systems complement each other in philosophy and function and how they are currently being integrated into a single "Honeywell Operating System," effectively integrating HSE principles and methods into mainstream operations.
  
  Introduction by: Erin Crotty, former AHC Group Senior Associate, and former NYSDEC Commissioner

Emerging Issues Workshop: 1:00PM to 5:00PM

Workshop Chair: Dennis Minano, former head of Energy and Environment at GM and now AHC Group Senior Associate.

Denny joined the AHC Group in early 2003, and this is the seventh set of facilitating his Emerging Issues workshop, now involving over 62 multi-nationals from our 197-leader network. The Emerging Issues workshops provide an opportunity for today's leaders to address those growing business strategy and changing global economy concerns on the near horizon, providing a glimpse into the future from the leading experts in their fields. Denny shows in this ongoing workshop the value of framing a response with tact and force.

• Dave Skiven — Executive Director of Worldwide Facilities Group at General Motors Corporation:
  
  Running a Large Service Organization within GM: The Worldwide Facilities Group
  
  Learn how GM's Worldwide Facilities Group accomplished the significant task of consolidating all facilities services into one centralized North American organization and is now deploying this successful business model on a global basis in GM's four regions of the world. WFG's leadership in the facilities management, energy, construction, and environmental segments achieves structural cost savings and improved utilization of assets and enables GM to focus on the vision of being the world leader in transportation products and related services.
  
  Introduction by: Steve Wolff — President of Power Production at Dayton Power & Light
  
  
• Dan Steen — Manager of Environmental Departments at First Energy Corporation:
  
  First Energy: The New Shareholder Report
  
  This case study outlines how First Energy moved into the climate change space, by explaining both the internal and external pressures on the corporation to take a position. This account by the chief environmental officer of the 5th largest utility in the United States shows both the complexity and tradeoffs required to move from a shareholder request in December 2004 into a report with substantial content and a position which explains the impacts to customers can be achieved.
  
  Introduction by: Russell Thornton — DNV/CoreRatings
  
  
• Skiles Boyd — Director, Environmental Management & Resources at DTE:
  
  Progressive Action, Practical Steps — Addressing Climate Change and Air Emissions: A report prepared in response to a shareholder request
  
  A number of companies are receiving shareholder resolutions on preparing reports regarding how they are addressing climate change. See a presentation on how DTE Energy received and responded to a shareholder request to have a Board overseen "assessment of how the company is responding to rising regulatory, competitive and public pressure to significantly reduce carbon dioxide and other emissions." The presentation will review the request, the process to prepare and roll out the report, an overview of the report itself, and any resulting follow-up activity. We saw it as a good opportunity to share a good story on what we were doing to reduce and offset emissions, educate our stakeholders on the complexity of the issues and help drive good national policy.
  
  Introduction by: Dennis Minano — Workshop Chair
  
  
• Ben Packard — Director, Environmental Affairs, Corporate Social Responsibility at Starbucks Coffee Company & Lisa Grice — VP, Greenhouse Gas Management Services at CH2MHill:
  
  Using a Cross-Cutting Corporate Environmental Action Team to Drive GHG Strategic Action
  
  Crafting piecemeal responses to ever burgeoning GHG drivers risks exposing companies to the high costs associated with inconsistent practices and communications. Companies may target energy efficiency in some operations but not others, emissions improvements in one geography but not others. In this presentation we will trace the mechanisms and successes of Starbucks Coffee's efforts to create a wholly coordinated approach to GHG management using a cross-cutting corporate environmental action team. We'll highlight priorities for designing and operating the team, and specifically detail how the team has been deployed to develop a corporate-wide GHG strategy for Starbucks by looking at both upstream and downstream emissions. We will also discuss the challenge Starbucks has in deploying this strategy into joint-venture businesses and licensing agreements globally.
  
  Introduction by: Dennis Minano — Workshop Chair

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For an example of the AHC Group's work in energy mobilization and energy related issues management, please see our Corporate Strategy Today web-pages.

CST Issue IV is a special workshop based monograph entitled "Responsible Energy Development." As a special discount for workshop participants and recipients of this notice — use the "Affiliate" discount code

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Day Two: Friday, January 27th

Governance and Innovation Workshop: 8:00am-12:00pm

Workshop Chair: Walt Rosenberg, former VP, Corporate Social & Environmental Responsibility at Hewlett-Packard and now AHC Senior Associate

This Governance and Innovation workshop has now met numerous over the years since its inception during the turbulent dates of the creation of Sarbanes Oxley and various internal governance reviews brought on by the Enron implosion. Please contact Marykay Greenfield (marykay@ahcgroup.com) if you'd like to see a summary of our Leadership Positions on Governance After Enron Lexis Nexis study resulting from this workshop series.

• Dr. Joan Wales — VP of Strategy & Planning at Remediation Management at BP:
  
  BP and Climate Change: Challenges in Governance and Innovation
  
  BP took a bold step in 1997 when it distanced itself from other multinational oil companies in advocating precautionary action on climate change. Forcing itself into action on a recognised threat, BP's journey to both improve the energy efficiency of on-going operations and to identify how to best position itself for future developments in the energy industry, involved many first-time efforts and major cross business initiatives. Public commitments require public verification, and BP had to create a new strand of environmental governance to be able to police and demonstrate compliance with new climate change related operational requirements. Now part of a wider carbon trading network, what was a concept only eight years ago is now an active part of BP's operations and future strategy.
  
  Introduction by: Steve Percy — AHC Senior Associate, former CEO and Chairman of BP Americas
  
  
• Dr. Andreas Pohlman — EVP, Chief Administrative Officer at Celanese AG:
  
  Comparing European and North American Developments in Governance and Innovation
  
  European and North American governance structures are growing together as the globalization of multinational companies further increases. Celanese is one of the rare examples of a company which has moved its headquarters from one continent to the other while maintaining best-in-class governance processes. This is a case study of change and value creation.
  
  Introduction by: Karen Swindler — Vice President, HSE at Lyondell: a new Corporate Affiliate after their purchase of Millennium.
  
  
• Bob Stiller — CEO and Founder of Green Mountain Coffee Roasters
  
  A Founders Reflections from Green Mountain Coffee Roasters
  
  GMRC a $116 million coffee specialty coffee wholesaler and catalog retailer with a history of addressing social responsibility ("SR") concerns in its coffee supply chain. GMCR has invested heavily in supporting the social, environmental and economic advancement of the communities in which its coffee is grown. This effort is rooted in a twinned business and social responsibility
  
  strategy. GMCR strives to redress the most serious inequities of the global coffee market, and support the sustainable development of coffee-growing communities. At the same time, GMCR seeks to distinguish itself in the competitive — and lucrative — specialty coffee market, attracting customers who will pay more for a high-quality cup of coffee produced in a more socially responsible manner. In pursuit of this strategy, GMCR faces a continuing dilemma — how far to pursue a social responsibility agenda when the business case is not always measurable, or even evident?
  
  Introduction by: Gordon Lambert — VP of Sustainable Development at Suncor Energy, Inc.
  
  
• David Harvey — Vice President, Environmental Affairs at Louisiana-Pacific Corporation
  
  Governance and Innovation at LP: A Nine Year Retrospect
  
  In the last 9 years, LP has transformed itself from "the worst to the first." By refocusing product mix and range through addressing a special set of environmental, social, investment, and energy pressures, this stunning case explains how to increase your margins and results-while achieving an enhancement to your reputation.
  
  Introduction: TBA

Shareholder Value Workshop: 1:00pm to 5:00pm

Workshop Chair: Hewson Baltzell, President of Innovest

AHC Group has established an ongoing strategic alliance with Innovest, and for this reason Hewson is our chair through our year 2006 workshop in this area. What is the state of play linking financial risk and stock valuation with a firm's path of growth? Over the last 3 years the AHC Group has financed a set of "Money Matters" workshops with the key rating groups of the world — at a number of our clients and corporate affiliates request. In our latest issue of Corporate Strategy Today we offer in one place the best findings and thinkers from these workshops.

Use the special "Affiliate" discount code: (Money2005) to qualify for a 20% discount on issue XI entitled:
Money Matters: Financial Risk, Stock Valuation and the Emergence of Rating Organizations

• Bruce Sampson — Vice-President, Sustainability at BC Hydro:
  
  BC Hydro's Business Case for Sustainability
  
  What are the confluences between the law, government, NGO and the private sector for a corporation to have a more logical approach to sustainability?
  
  Introduction by: Bruce Piasecki, AHC Group President and Founder
  
  
• Gil Friend — President and CEO of Natural Logic, Inc.
  
  Risk, Fiduciary Responsibility, and 'Regulatory Insulation'
  
  Executives and boards are fiduciaries, holding economic value in trust (from Latin, fidere, to trust) for shareholders. But because the scope of that trust is narrowly drawn — focused only on what can be monetized, and usually focused only on the near term — too many companies, their directors, and their executives run their companies with a rear view mirror, instead of a radar system, and miss critical market signals. As a result, Gil explains, many may be failing their duty as fiduciaries.
  
  Despite the considerable progress some firms have made in integrating sustainability into their business, even the best of corporate sustainability initiatives may be inadequate to both the challenge or the opportunity we face.
  
  Gil shows us how companies that look at the world — and competitive markets — through an ecological lens can identify key issues early, position their products ahead of the trend, and avoid the cognitive errors and flawed management methodologies that hamper companies that don't.
  
  Introduction by: Patrick Pfeifer — Senior Vice President/General Manager at ESS
  
  
• David Monsma — Professor of Law and Corporate Social Responsibility at Loyola College
  
  Financial and Legal Materiality of Non-Financial Performance
  
  To assure the integrity and accuracy of information about the financial condition of companies with publicly-traded stocks, the periodic and certified fair disclosure of "financial performance" information (e.g., income statement, balance sheet, net income, method of inventory valuation, environmental contingencies and liability, etc.) is mandated by securities law and expected by investors. In contrast, however, the corporate reporting and disclosure of "non-financial" or extra-financial performance information, sometimes referred to as "intangible assets" (e.g., market penetration, customer satisfaction, product improvement, social accountability, and environmental performance) by publicly-traded companies is largely voluntary and is not, as yet, regulated in the same way. Information about corporate social and environmental commitments, however, is increasingly relied upon by segments of the financial investment community that track the corporate social responsibility (CSR) and environmental sustainability of companies, sometimes referred to as socially responsible investors (SRIs). Due to the current lack of disclosure requirements on social accountability and environmental performance in the U.S., often the investing public is faced with insufficient information on evaluating companies’ performance. While management of these companies have superior information on their firm’s performance, investors are left with little credible information to understand the true costs or risks associated with how well intangible company assets are managed or not.
  
  Introduction by: Dr. Helena Barton — Business Development Manager (USA) of DNV/CoreRatings
  

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(View all biographies of January 2006 workshop speakers and chairs.)

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Why has the AHC Group offered this special finance monograph, and our related Financial Risk and Shareholder Value Workshops?

• After Enron and WorldCom, the role of 3rd party rating groups has risen rapidly in consequence.
  
• For 25 years, we have been known to publish "state-of-play" trustworthy analysis of key trends to management on corporate strategy.
  
• Current energy and oil price volatility, and mounting environmental checks regarding carbon trading, climate change, brand positions, and the future of oil reserves make this monograph's family of related articles both timely and worthy to share with your officers, top operating people, IR staff, and your EHS executives.
  
  

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