SUSTAINABLE CLEANING PRODUCTS: DIVERSE CONSUMERS REQUIRE DIVERSE SOLUTIONS

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1 SUSTAINABLE CLEANING PRODUCTS: DIVERSE CONSUMERS REQUIRE DIVERSE SOLUTIONS Andre Chieffi P&G N ewcast le Innovat ion C entre

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3 P&G S AMBITION 2030 B R A N D S S U P P L Y C H A I N S O C I E T Y E M P L O Y E E S Use the power of innovation and our brands to delight consumers and drive positive impact. Reduce our footprint and strive for circular solutions. Create transformative partnerships that enable people, the planet and our business to thrive. Engage and equip P&G employees to build sustainability thinking and practice to their work and their communities. 3

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5 DIVERSE CONSUMERS REQUIRE DIVERSE SOLTIONS

6 How to look at our consumers with a sustainable outlook? Who are they? 15% 75% 10% GREEN NICHE Most active in environmental activities Will accept trade-offs in value/performance. Most concerned with personal health related to sustainability SUSTAINABLE MAINSTREAM NATURALITES TRENDIES CONVENTIONALS Want to be perceived as doing their part Driven by cost savings; eco-benefits secondary Will not accept trade-offs in value or performance. BASIC LIVING Dealing with day-today challenges Environmental issues not top of mind

7 MAKING SUSTAINABILITY PART OF EVERY PRODUCT S LIFE CYCLE The Challenge: Our biggest footprint is energy used when consumers heat water for laundry Product Lifecycle

8 MAKING SUSTAINABILITY PART OF EVERY PRODUCT S LIFE CYCLE A clear call to action Innovation - Developing products that wash better in cold water Consumer Education Changing behavior to wash in cold

9 Changing Consumer Behavior via Education Boyano Larriba, A. et al; Ecodesign and Energy Label for household washing machines and washer dryers, EUR EN, Publications Office of the European Union, 2017.

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11 Global energy efficient cycles

12 LATIN AMERICAN EXAMPLE: COMPACTED LAUNDRY PRODUCTS Recent research with Brazilian consumers 62% support sustainable practices at home 47% associate concentrated products to sustainability 90% have environmental concerns 78% has used concentrated products 92% associate refills packaging to sustainability

13 MAKING SUSTAINABILITY PART OF EVERY PRODUCT S LIFE CYCLE Liquid Ariel and Downy compaction (Brazil)

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15 Use a high quality liquid or single dose detergent Wash on cold and quick cycle Use a high quality fabric softener

16 GREEN CHEMISTRY & THE CURCULAR ECONOMY IN LAUNDRY Design to wash on Cold Suds control Compact formula/low water PCR use in package Minimize Resource Use Renewable Resources Plant-Based Formulations 100% Wind Power Electricity Minimize Waste Zero manufacturing waste to landfill Recyclable package Create recycling access Maintain fabric life

17 TIDE purclean Solving the tension between the need for clean and the desire for plant-based products Cleaning performance equivalent to Tide Designed to clean in cold Certified USDA Bio-Based Formula produced at a facility that uses 100% renewable wind power electricity and sends zero manufacturing waste to landfill 100% Recyclable Packaging Free of dyes, monoethanolamine and optical brighteners

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19 THE PRICE OF POOR PERFORMANCE Consumers need to get clothes clean If detergent fails, our compensating behaviors impact sustainability. Compensating Behavior Wash in warm or hot water Re-Wash Sustainability Impact CO2 increase vs. washing in cold 2Xwater and energy in-use Use More Detergent 2-5X dose size! 2-5X more plastic per use, higher CO2 of making/shipping Additives (Bleach, Stain Removers) Higher packaging and water/energy of production/shipping

20 Thank you for your attention! Contact: