Offering Consumer-Relevant Solutions and Influencing Consumer Choices. Uwe Bergmann OECD CCP Conference on Consumer Education 24 October 2008
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1 Offering Consumer-Relevant Solutions and Influencing Consumer Choices Uwe Bergmann OECD CCP Conference on Consumer Education 24 October 2008
2 Henkel worldwide 2007 Sales 13,074 Mio. Over 55,000 Employees 125 Countries 2
3 Three Areas of Competence Laundry & Home Care Share of Sales Cosmetics/ Toiletries Share of Sales Adhesive Technologies Share of Sales 32% 23% 43% Quality with Brands & Technologies 3
4 A sustainable business model Disposal Raw materials Use phase Transportation Distribution Manufacturing of products and packaging Manufacturing of ingredients has to focus on the entire value chain 4
5 A sustainable business model CO 2 -Emissions Persil Universal Powder vs. Megaperls [kg/1000 wash loads] Powder 1 Raw materials Megaperls Production Packaging Transport Use 60 C 30 C Waste Disposal Reduction of Improvements in the entire packaging value chain by switching material from by normal 90% to concentrated detergent: Reduction of handling Reduction cost of packaging material by 90 by % more than 50% 400,000 km less 50 % reduced handling truck km/year cost due to less number of pallets needed Reduction of energy consumption by switching to lower 400,000 km less truck km/year washing for the main format temperatures has to focus on the entire value chain 5
6 Sustainability in laundry washing: Progress from 1978 to
7 Sustainability in laundry washing: Example Germany: Reduction of CO 2 emissions Progress in textile washing since 1970 means: 2,700 Gigawatt hours* less electricity consumed, equivalent to a reduction of 1.5 millions tons* in carbon dioxide emissions * per annum, based on about 1.3 billion loads of laundry washed with Henkel detergents in Germany 7
8 Innovation and Sustainability: Persil 1907 The washday revolution The world s first self-acting detergent Washes and bleaches without chlorine Takes the drudgery out of washing Improves hygiene in the household Directly tangible contribution to social progress! 8
9 Sustainability as Part of our DNA Demonstrated by Persil Launch of Persil as the world s first self-acting detergent 1907 Persil phosphate-free: Contribution to protection of surface waters Persil with Plantaren: Surfactants based 100% on renewable raw materials Persil Megaperls: 65% reduction of detergent dosage per wash cycle Persil: Best heavy-duty detergent at low temperatures* Years Quality & Responsibility Direct contributions to social progress * Confirmed by independent research institution Persil Bioactive: Reduction of domestic energy consumption through the help of enzymes 1907 Persil Eco-Light Die Package: Umweltverträglichkeit 50% reduction in nimmt packaging zu material Persil Tabs: Contribution to resource efficiency by providing predosed consumer units 9
10 Current Initiative: Quality and Responsibility Banderole on packaging of all Henkel s laundry and home care products Comprehensive approach to sustainability Translated into 13 languages 10
11 Persil TV Commercial: Better than ever at 20 C 11
12 Focus on Product Life Cycle Focus on areas of the product life cycle where greatest improvements are possible 12
13 Somat 7 TV Commercial: Low-Temperature Activator 13
14 Vernel TV Commercial in Egypt: Easy Rinse to Save Water 14
15 Working with Partners: Forum Waschen Sustainable Laundering 2007 Yearly Information Day for Consumers Information on efficient usage of detergents and washing temperatures 15
16 Industry Sector Approach: Washright Campaign Website with Tips and Information 16
17 Industry Sector Approach: Save Energy & Water Product Label for Automatic Dishwasher Detergents Website with Additional Tips and Information 17
18 Conclusions & Learnings The role of business and the role of consumers are intrinsically linked in terms of the sustainable use of products. In future, delivering performance that is both based on sustainability and recognized as added value, will become increasingly important for consumer choices. This development offers great potential as a driver for innovative products - smarter consumer relevant solutions that link product quality to the shared responsibility of producers and consumers. We need to influence consumers choices by communicating top performance, the added value of sustainable products and enabling behavioral changes. Informed choices and informed use avoid rebound effects and reduce the potential for unintended consequences and conflicts. 18
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