This document summarizes a presentation on sustainability trends in the household cleaning products industry. It notes that green claims are increasingly common but often vague and unsubstantiated. Consumers want more education on sustainability claims. The presentation identifies five key sustainability issues for the industry and argues that enzymes can help address these issues and provide benefits like high performance at low temperatures. It provides examples of brands that have grown by incorporating stronger sustainability messages and scientific documentation of their products' environmental profile through life cycle assessments.
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
From Sustainability Trends and Labelling - to Real Business Actions and Value - Novozymes
1. EB DIRECTORS 090124 MEETING, BÅSTAD, SWEDEN
From sustainability
Trends and Labels
To real business
Actions and Value!
Claus Stig Pedersen
Head of Corporate Sustainability
Novozymes A/S
3. NOVOZYMES 3 03/11/14 PRESENTATION
Enable
9.000.000.000 people
live decent lives
within planetary boundaries
In 2050
4. NOVOZYMES 4 11/03/14 PRESENTATION
Global Mega Trends
SUSTAINABILITY ISSUES WILL GROWINGLY IMPACT ALL
BUSINESSES - DIRECTLY OR INDIRECTLY, - POSITIVELY OR
NEGATIVELY
5. GROWING BUSINESS RESPONSES
TO THE GROWING SUSTAINABILITY ISSUES
TO AVOID RISKS
TO REDUCE COSTS
TO TURN CHALLENGES INTO OPPORTUNITIES
7. THE HHC INDUSTRY IS SAYING A LOT…
“…easy to rinse…”
“…phosphate-free product
contains biodegradable
surfactants and enzymes…”
“…environment friendly…”
“…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…”
“… effective in cold water”…
“…less energy/save
energy…”
“…contains biodegradable
surfactants…”
“…contains plant based
ingredients…”
“…approved by EU Ecolabel…”
“…dermatologically
tested…”
“…hypoallergenic…”
IS ANYBODY LISTENING? OR UNDERSTANDING?
DO THE CLAIMS DRIVE CONSUMER ACTIONS AND BUSINESS
VALUE?, - OR THE OPPOSITE?
10. 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)
11. Corporate Sustainability
11
Consumers want to “be green” and seek
solutions and reliable information / education
How frequent US consumers consider
sustainanility when shopping
Everytime
Regularly
Sometimes
7%
20%
44%
Source: American consumer research study
29%
71%
Understand Sustainabilty Claims
Need more education on
sustainability claims
Rarely 20%
Never 10%
71% wish companies do a better job of helping
them understand the sustainability claims used
18. NOVOZYMES 18 11/03/14 PRESENTATION
Life Cycle Assessments (LCAs) are the method
to scientifically document sustainability
improvements of the product value chain
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.
19. Corporate Sustainability
19
The HHC industry must address five key
sustainability issues…
Effective handling of these issues are likely to impact risk and
cost profile positively, open business opportunities and add brand value
Source: Internal analysis
20. Corporate Sustainability
20
… and enzymes address these sustainability
issues in detergents and deliver tangible benefits
Enzymes address all these critical issues and help build brand value
• 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
Source: Internal analysis
21. Corporate Sustainability
21
SUSTAINABILITY PAYS….
Persil Small and Mighty, Unilever,
Overtook the powder variant and as of 2013, was the
biggest seller in Unilever UK & Ireland’s laundry portfolio
Tide PODS, P&G
Captured 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
22. Concluding remarks
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
What is going on : S trends = fundamental trends and business trends eg labels in the HHC industry
Why: its time to go beyond labelling, take stronger action and drive more value from sustainability
How: this can be done
The challenge of sustainability
The challenge we must get our hands around
A big challenge that require a lot of innovation and much smarter ways of producing consumer goods
A challenge so big that no-one can meet it alone
Why we gather the HHC industry to discuss, share and learn
What we can do to turn challenges into opportunities that benefit the world and our business at the same time
Labels have served the HHC industry well
Building the bridge from the serious sustainability issues the world care about to its products
The time is right to change gear, step up, go beyond talking about the trends making labels and take stronger action – why:
The underlying sustainability drivers continue to mount - driving regulations, costs and opportunities for businesses
labelling is growingly becomming problematic - putting brand and reputation at risk
Consumers growingly care and ask for trustworthy information / education
Retailers dramatically step up and will drive transformations of their supply chains – making S winners = market winners
Growing community of ”watchdogs”
=> Risk of damaging brand and reputation
Vagueness is the most frequent greenwashing sin for this category (committed by 77.4% of products)
A vague claim is one that is so poorly defined or broad that its real meaning is likely to be misunderstood by the consumer. Some frequent examples include unelaborated uses of: (1) Eco-friendly, (2) Environmentally-friendly, (3) Earth-friendly, (4) Environment safe , (5) Harnessing nature, and (6) Eco-chemistry
“Lack of proof” is another frequently committed greenwashing sin for this category, which occurs when environmental claims cannot substantiated by easily accessible supporting information or by a reliable third-party certification..
70 % of US Consumers care
70 % need education
April 2014: Walmart's first Sustainable Product Expo
Walmart Stores' new president and CEO Doug McMillon
heads of Cargill, General Mills, Johnson & Johnson Group Monsanto, PepsiCo, P&G and Unilever North America.
HHC summit in 2012 TSC + WM on stage
Today a quick recap + update
Science base – the devil is in the detail – its all in the numbers
If this is interesting for you?
I suggest you visit our stand outside and learn:
- How our enzyme technology can help optimize your products
- How NZ can help you succeed in a market where the sustainability interest is booming