EB DIRECTORS MEETING, BÅSTAD, SWEDEN090124

Claus Stig PedersenHead of Corporate SustainabilityNovozymes A/S

From sustainability

Trends and LabelsTo real business

Actions and Value!

NOVOZYMES PRESENTATION2 13/04/23

NOVOZYMES PRESENTATION3 13/04/23

Enable

9.000.000.000 people

live decent lives

within planetary boundaries

In 2050

NOVOZYMES PRESENTATION4 04/13/23

Global Mega Trends

SUSTAINABILITY ISSUES WILL GROWINGLY IMPACT ALL BUSINESSES - DIRECTLY OR INDIRECTLY, - POSITIVELY OR NEGATIVELY

GROWING BUSINESS RESPONSES TO THE GROWING SUSTAINABILITY ISSUES

TO AVOID RISKSTO REDUCE COSTSTO TURN CHALLENGES INTO OPPORTUNITIES

NOVOZYMES PRESENTATION6 13/04/23

SUSTAINABILITY LABELLING IN HHC - 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 CONSUMER ACTIONS AND BUSINESS VALUE?, - OR THE OPPOSITE?

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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

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Source: American consumer research study

29%

71%

Understand Sustainabilty ClaimsNeed 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

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Retailers demand products that perform better in a life cycle perspective and look for scientific documentation

NOVOZYMES PRESENTATION17 13/04/23

=

Opportunity

Confusion

Life Cycle Assessments (LCAs) are the method to scientifically document sustainability improvements of the product value chain

NOVOZYMES PRESENTATION18 04/13/23

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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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

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• 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

Corporate Sustainability

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SUSTAINABILITY PAYS….

Persil Small and Mighty, Unilever,Overtook the powder variant and as of 2013, was thebiggest seller in Unilever UK & Ireland’s laundry portfolio

Tide PODS, P&GCaptured more than 70% of liquid tablet detergent sales in the US In just 10 months

Purex Natural Elements, Henkel,Sales has outgrown other products in the category for three years in a row

The global sustainability agenda is robust, strong, and will significantly influence all companies

The HHC industry has successfully used sustainability to label products and support the business

Growing transparency, consumer and retailer demands provide both challenges and opportunities

Sustainability pays when … real action is taken to improve product performance product perfomance improvements are scientifically documented

(LCA´s, ISO) Improvements are translated into stories and claims that consumers

trust and find appealing

Concluding remarks

Lets change the world

together !