What do customers and consumers expect from more sustainable products

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1 What do customers and consumers expect from more sustainable products Uwe Bergmann Berlin, 29/01/2015

2 In billion people live well, and within the limits of the planet Starting point to quantify the challenge Today s footprint ca planets > 300% GDP growth until 2050 = Need to improve efficiency 5 x Reduce per capita footprint Improve quality of life Living well, and within the limits of the planet 2

3 Strategy 2030: Achieving more with less Triple the value we create for the footprint made by our operations by 2030 Six focal areas: Three strategic principles: Products Partners People Measure success 3

4 Operationalizing sustainability Strategic principles Our products Our partners Our people Our products deliver more value at a reduced ecological footprint Our partners are key to driving sustainability along our value chain Our people make the difference through their dedication, skills and knowledge 4

5 Gate Go 1 Gate Go 2 Gate Go 3 Integrating sustainability in innovation processes Basis for driving progress on product level Concept Development Validation Launch Control Identification of relevant focal areas Semi quantitative assessment of focal areas From - 2 to + 2 Standardized quantitative assessment Sustainability# Master + LCA 5

6 kg CO2eq per wash load Understanding improvement potential and hot spots Automatic dishwashing: 22% carbon footprint reduction at 40 degress Somat Gold is suitable for low temperatures whereas normal programs are recommended for Somat All IN 1 0,9 0,8 0,7 0,6 0,5 0,4 0,3 0,2 0,1 0,0 Raw Materials Packaging Production Distribution Use phase Disposal Somat C Somat C

7 Comprehensive assessment of sustainability contributions Sustainability#Master: Somat Gold compared to Somat ALL IN 1 Value Raw materials Production Logistics Retailing Use Disposal Performance More efficient loading Cleaning performance Health and Safety Social Progress Recommended Short programs Materials and Waste Less petrochemical raw materials Reduced packaging Secondary packaging Reduced dosage Energy and Climate More targeted raw materials selection Reduced emissions Cleaning temperature Water and Wastewater Dishwasher consumption Eutrophication Potential Footprint Significant Improvement No Change 7

8 Comprehensive assessment of sustainability contributions Sustainability#Master: Oil Elixir compared to its predecessor 8

9 Comprehensive assessment of sustainability contributions Sustainability#Master: BONDERITE TecTalis compared to zinc phosphating 9

10 Operationalizing sustainability Strategic principles Our products Our partners Our people Our products deliver more value at a reduced ecological footprint Our partners are key to driving sustainability along our value chain Our people make the difference through their dedication, skills and knowledge 10

11 Footprint Value Need to contribute to customers focus and strategies Overview of retailers goals and programs Raw Material Sourcing Production Logistics Retail Usage Disposal Performance xxxxxxx xxx Safety and Health x xxxx xxx x Social Progress xxxxxxxxxxx xxxx x xx xxxxxx xxxxx x Materials and Waste xxxxxxx xxxx xxxxxx xxxxxx Energy and Climate xxxxxxxxxxx xxxxxxxxxxx xxxxxx xx Water and Wastewater xxxxx Retailers mainly focus on sourcing strategies as well as on logistics and retail (ins store) operations 11

12 Need to overcome hurdles in consumer attitude & perception Why consumers do not buy eco or sustainable products. No willingness to compromise on performance, convenience or price! 12

13 Need to overcome hurdles in consumer attitude & perception How consumers perceive carbon footprint of our products. Consumer perception shaped by personal experience often does not reflect science! 13

14 Operationalizing sustainability Strategic principles Our products Our partners Our people Our products deliver more value at a reduced ecological footprint Our partners are key to driving sustainability along our value chain Our people make the difference through their dedication, skills and knowledge 14

15 Enabling our product developers Strategic principles 15

16 Strengthening our position as sustainability leader Holistic perspective Stakeholders Ratings KPIs 16

17 Thank you!