From Sustainability Trends and Labelling - to Real Business Actions and Value Insights - Novozymes -...
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EB DIRECTORS MEETING, BÅSTAD, SWEDEN 090124 Claus Stig Pedersen Head of Corporate Sustainability Novozymes A/S Grow your brand value with sustainability
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From Sustainability Trends and Labelling - to Real Business Actions and Value Insights
Transcript of From Sustainability Trends and Labelling - to Real Business Actions and Value Insights - Novozymes -...
EB DIRECTORS MEETING, BÅSTAD, SWEDEN 090124
Claus Stig Pedersen Head of Corporate Sustainability Novozymes A/S
Grow your brand value with sustainability
NOVOZYMES PRESENTATION 2 18/08/2014
NOVOZYMES PRESENTATION 3 18/08/2014
WORLD LEADER IN BIO- INNOVATION Rough numbers:
•2 bill USD in sales
•6 t employees
•14 % of sales re-invested in R&D
•24 % operating profit margin
Our business: RETHINK MANAFACTURING AND QUALITY OF EVERYDAY CONSUMER PRODUCTS
NOVOZYMES PRESENTATION 5 18/08/2014
Enable
9.000.000.000 people
live decent lives
within planetary boundaries
In 2050
NOVOZYMES PRESENTATION 6 18/08/2014
NOVOZYMES PRESENTATION 7 18/08/2014
Natural resources -
Critical resource !
Alternative resource!
Educate ! Influence !
Time
Increasing cost Restrictions !
Policy Regulation
Reputation ! Brand !
Learning ! Endorsement !
Lost Business !
Business Development !
Retail Power
New York City Employees‘ Retirement System
Attract and retain investors !
Financial challenges !
Investors
People make
the difference !
Sustainability make
the difference !
Attract and retain the best !
Recruitment challenges !
Before
Reputation
Today
Grow current biz
Tomorrow
Develop new biz
HOW!
SUSTAINABILITY IN NOVOZYMES
Drive the world toward sustainability
• Become a voice on the world stage
• Drive new business
from sustainability
• Build sustainability capabilities
SUSTAINABILITY BOARD
(VP level)
Sourc. HR Prod.
S&M
R&D
Fin. PA&COM
From Stakeholder careabouts - to integrated business initiatives and brand value add
R&D Purchasing Production Sales &
Marketing People &
Organisation Com. and
public affairs Finance, IT
& Legal
LCA screenings: Sustainability profile of the
product pipeline
Supplier performance management
program
Ambitious
targets for energy and water savings
Sustainability as biz differentiator backed by LCAs
Sustainability based target,
bonus and stock option
scheme
Inform and influence
public opinion and policies
Integrated
sustainability reporting
and investor road shows
ID future branding options
Brand protect.
Cost savings
Brand prot.
Customer branding
Employer Br
Focus
Stakeh. branding
Investor branding
NOVOZYMES PRESENTATION 17 18/08/2014
SUSTAINABILITY BRANDING IN HHC - LABELLING EXAMPLES
“…phosphate-free product contains biodegradable surfactants and enzymes…”
“…features the A.I.S.E. Sustainable Cleaning logo…” “…free of phosphate,
aluminum and alkaline…” “…phosphate-free product contains biodegradable surfactants and enzymes…”
“…free from bleach…”
“…Biodegradable product…”
“…features the A.I.S.E. Clean Right logo…”
“…A.I.S.E., Cleaner Planet Plan and Sustainable Cleaning…”
“…pack made from post-consumer recycled material/ recycled material…”
“…easy to rinse…”
“… effective in cold water”…
“…less energy/save energy…”
“…contains biodegradable surfactants…”
“…contains plant based ingredients…”
“…environment friendly…”
“…approved by EU Ecolabel…” “…dermatologically tested…”
“…hypoallergenic…”
THE HHC INDUSTRY IS SAYING A LOT…
IS ANYBODY LISTENING? OR UNDERSTANDING? DO THE CLAIMS DRIVE BRAND VALUE? OR THE OPPOSITE? CAN THE CLAIMS BE TRUSTED …….?
NOVOZYMES PRESENTATION 19 18/08/2014
Green claims in household care products are increasingly common, but remain vague and unsubstantiated in many cases
Source: Terrachoice, The Sins of Greenwashing Home and Family Edition (2010)
Corporate Sustainability
Consumers want to “be green” and seek solutions and reliable information / education
21
Source: American consumer research study
29%
71%
Understand Sustainabilty Claims Need more education on sustainability claims
20% Rarely
Everytime
Regularly
Sometimes
Never 10%
44%
20%
7%
How frequent US consumers consider sustainanility when shopping
71% wish companies do a better job of helping them understand the sustainability claims used
Corporate Sustainability
Most retailers have comprehensive sustainability programs and increasingly require scientific documentation from suppliers
22
Source: GreenBiz Report, 2010
Life Cycle Assessments (LCAs) are the method to scientifically document sustainability improvements of the product value chain
NOVOZYMES PRESENTATION 23 8/18/2014
Enzyme production
Detergent formulation
Chemical production
Washing 2.7 kg laundry
Heat production
Fuel extraction
Wastewater treatment
3rd party verified LCAs are required By ISO when sustainability is used for sales, marketing and branding.
Corporate Sustainability
The HHC industry must address five key sustainability issues…
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Use of non-renewable
petro chemical
surfactants
Energy consumption in use of their
detergents
Safeguarding of water resources
Carbon footprint across
complete value chain
Health issues related to
problematic chemical
ingredients
Effective handling of these issues are likely to impact risk and cost profile positively, open business opportunities and add brand value
Source: Internal analysis
Corporate Sustainability
… and enzymes address these sustainability issues in detergents and deliver tangible benefits
25
• High wash performance at low temperatures
• Reduce raw materials use
• A renewable resource
• Safe for consumers
• Save time and effort in hand washing
• Enables compaction
• Reduce eutrophication, aquatic toxicity
• Biodegradable
Enzymes address all these critical issues and help build brand value
Source: Internal analysis
Persil Small and Mighty (detergent) Unilever, UK
Sustainability Benefits: Lower CO2 impact from manufacturing, distribution and
use. Less packaging and transportation. Commercial Benefits: Overtook the powder variant and as of 2013, was the
biggest seller in Unilever UK & Ireland’s laundry portfolio
SUCCESSFUL SUSTAINABILITY BRANDING...
Source: http://www.retailtimes.co.uk/unilever-sustainable-living-plan-drives-sales-growth-and-cuts-costs-company-reports/
Tide PODS (detergent) P&G, USA
Sustainability Benefits: Phosphate-free concentrated detergent helps save
energy, transport, packaging and thereby CO2 emissions, washes in cold water
Commercial Benefits: In just 10 months this product captured more than 70%
of liquid tablet detergent sales in the US
http://www.portal.euromonitor.com/portal/default.aspx?RcjhxMZF61OI8%2b8YJVG37A%3d%3d
Emily Potts, Euromonitor Analyst , May 2013
SUCCESSFUL SUSTAINABILITY BRANDING...
Purex Natural Elements (detergent) Henkel, USA
Sustainability Benefits: Lower CO2 impact from manufacturing and use.
Cold water washing. Commercial Benefits: Sales has outgrown other products for three years
in a row
Source: http://www.nbcnews.com/id/40072953/ns/business-going_green/
SUCCESSFUL SUSTAINABILITY BRANDING...
The global sustainability agenda is robust, strong,
and will significantly influence all companies Growing transparency, consumer and retailer
demands provide both challenges and opportunities for branding in the HHC industry The risk of “greenwashing” and
brand damage are real Sustainability branding succeed when …
real action is taken to improve product performance product perfomance improvements are scientifically
documented (LCA, ISO standard) Improvements are translated into stories and claims that
consumers trust and find appealing
Concluding remarks
Thank you
