Sustainability: A Tool for Competitive Advantage. Gianluca Mainolfi Vice President, Asia-Pacific/China & Global Marketing - Textile Care Ecolab
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1 Sustainability: A Tool for Competitive Advantage Gianluca Mainolfi Vice President, Asia-Pacific/China & Global Marketing - Textile Care Ecolab
2 Sustainability energy reuse footprint future efficiency water recycle green bio pollution smart waste eco-friendly sustainability clean regeneration impact future health 2
3 Rank the Following Key Business Drivers A) Productivity, Time, and Labor Savings B) Water & Energy Savings C) Waste Impact, Regulatory Compliance D) Environmental Quality, Healthy Environments PROCESS AND PRODUCT SUSTAINABILITY E) Product Stewardship & Process Safety 3
4 Never has the confluence of business and the environment been more significant than it is today 4
5 #1 Business Driver Growth, Profits, and Commercial Success Sustainability Products and Processes as tools to Be cheaper and faster than your competitors Develop premium products with longer lifecycles and better value Build your brand reputation and protect it PROCESS AND PRODUCT SUSTAINABILITY 5
6 We, as a company, have to take sustainability very seriously Every day, our customers use Ecolab products and services to: Wash over 250 million dishes Wash over 75 million hands Finish 2 million square meters of floor Wash over 38 million kilograms of laundry Treat over 10 million chickens to control Salmonella Clean over 3 million hotel rooms 6
7 Our Total Approach to Sustainability 7
8 Business Cases 8
9 Sustainable Product Who: Oilfield operator in South Texas Opportunity: increased production from previously shut-in wells. Problem: Severe separation issues in storage tanks. The production, from a field with a history of microbe-related production problems, carried a large influx of oil-wet iron sulfide solids into the processing facility. Daily oil production grew erratic, and sampling indicated oil carryover four times beyond the 50-ppm allowed maximum for disposal water. Solution: treatment program to help oil quality meet sales specs and waste water comply with disposal standards while reducing the size of the emulsion pad in the gun barrel tank. Benefits: A 3550% ROI WITH $55,000 IN ANNUAL INCREASED OIL SALES 9
10 Sustainable Product Who: Packaged food manufacturer Opportunity: eliminate water from the cleaning process. Reduce the time required to manually clean the equipment. Keep safety a priority (remove hot caustic washing) Solution: DrySan Duo (dry) cleaning program. Objectives: Use cleaning product in ready-to-use spray bottles at room temperature Eliminate multiple chemicals No rinsing or dilution necessary Low alcohol - non-flammable formula means no worker PPE is required to use it Results: Conveyor belt cleaning time from 5 hours to 2.5 hours Dough hopper cleaning time from 6 hours to 3 hours Eliminated 100% of the process water Workers safety: eliminated the hot, caustic manual wash step. A 3550% ROI WITH $55,000 IN ANNUAL INCREASED OIL SALES 10
11 Sustainable Packaging Significant plastic reduction in dish detergents with non-caustic, biodegradable chemistry 20 L container Solid capsule container Apex wrapper $200 MILLION SAVED BY RESTAURANT KITCHENS 11
12 Sustainable Product Commercial Laundry: Wash more with less chemistry Benefits 25% reduction in water costs 20% reduction in energy costs 65% reduction in packaging waste 65 % reduction on transport Savings if all laundries around the world switched to emulsions 137 million m3 of WATER 16 million kg of PLASTICS 180 million kwhr of ENERGY $400 MILLION OF COSTS SAVED BY THE LAUNDRY INDUSTRY 12
13 Sustainable Commercial Innovation Help a Commercial Laundry to design and commercialize differentiated products for their hotel chain customers Who: Large commercial laundry Asia Opportunity: increase laundry revenues, acquire new customers, enter new segments Problem: how to differentiate between lowend and high-end hotel chains in terms of quality, service, and price Solution: design 2 different washing programs to deliver distinct results with respect to quality, cost, and sustainable positioning/results, and help the laundry market them Outcome: OxyGuard40 low-temp, lowwater/energy program with extended softening effect for high-end hotels, mid-temp value-formoney program for 3* hotel chains 18% SALES GROWTH ACQUIRED 20 NEW 5* HOTEL CUSTOMERS 13
14 Tools & Operational Policies 14
15 a customer centric tool to evaluate benefits and impact from sustainable projects The combined benefits of improved performance, operational efficiency and sustainable impact. 15
16 SPOTLIGHT ON WATER Industry is the second largest water consumer!
17 SPOTLIGHT ON WATER The global commercial laundry industry use 650 million cubic meters of water annually A 10% reduction in water use is equivalent to access to water for a new city of 1 million people 66 million of lower costs 17
18 Water is Undervalued Prices inverse to risk
19 CDP Disclosed Revenues at Risk
20 The most forward-looking companies have aggressive water goals
21 Changing the way water is valued It s time to understand the full value of water and monetize your risk 21
22 From Operations at Risk to Risk Mitigation It s time to understand the full value of water and monetize your risk 22
23 Visibility into Operational Risk It s time to understand the full value of water and monetize your risk 23
24 Create your Internal Sustainability Policies beyond Regulatory Compliance Why create internal policies? Customer Reputation Risk (Corporate Commitment) Regulatory Risk (Simplify Business) Your Company Corporate Risk (Excellence in Managing your Business) 24
25 Sustainability is about Growth and, ultimately, about Brand Protection It takes 20 years to build a reputation and 5 minutes to ruin it. If you think about that you ll do things differently. Warren Buffet 25
26 Sustainability drives Sustainable Financial Returns 100% 80% DJSI S&P Last 15 years - Total Returns 60% 40% 20% 0% -20% -40% -60%
27 Principles that must guide every business when thinking about sustainability
28 Thank you
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