From Sustainability Trends and Labelling - to Real Business Actions and Value Insights - Novozymes - Claus Pedersen/Denmark - Head of Corporate Sustainability
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From Sustainability Trends and Labelling - to Real Business Actions and Value Insights - Novozymes - Claus Pedersen/Denmark - Head of Corporate Sustainability
1. EB DIRECTORS 090124 MEETING, BÅSTAD, SWEDEN
Claus Stig Pedersen
Head of Corporate Sustainability
Novozymes A/S
Grow your brand value
with sustainability
11. New York City Employees‘ Retirement System
Attract and retain
investors !
Financial
challenges !
Investors
12. People make
the difference !
Sustainability make
the difference !
Attract and retain the best !
Recruitment challenges !
13. Before Reputation
Today
Grow current biz
Tomorrow
Develop new biz
HOW! SUSTAINABILITY IN NOVOZYMES
14. Drive the world toward sustainability
•
Become a voice on the world stage
•Drive new business from sustainability
•Build sustainability capabilities
16. 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
18. “…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 …….?
20. 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)
21. 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
22. Corporate Sustainability
Most retailers have comprehensive sustainability programs and increasingly require scientific documentation from suppliers
22
Source: GreenBiz Report, 2010
23. Life Cycle Assessments (LCAs) are the method to scientifically document sustainability improvements of the product value chain
23 8/18/2014 NOVOZYMES PRESENTATION
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.
24. Corporate Sustainability
The HHC industry must address five key sustainability issues…
24
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
25. 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
26.
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/
27.
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...
28.
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...
29. 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