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?
NOVOZYMES PRESENTATION8 13/04/23
NOVOZYMES PRESENTATION9 13/04/23
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
NOVOZYMES PRESENTATION12 13/04/23
NOVOZYMES PRESENTATION13 13/04/23
NOVOZYMES PRESENTATION14 13/04/23
NOVOZYMES PRESENTATION15 13/04/23
NOVOZYMES PRESENTATION16 13/04/23
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 !
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