Sustainability in Action at Henkel Exploring Renewable Materials for our Products and Supply Chain

Transcription

1 Sustainability in Action at Henkel Exploring Renewable Materials for our Products and Supply Chain Pete He, PhD Senior Research Fellow - Sustainability Henkel Consumer Goods Inc. San Diego, Jan. 29, 2013

2 Contents 1. Henkel and our response to the sustainability challenge 2. Renewable materials for mainstream products/supply chains 3. Key factors for our future success Slide 2

3 Henkel around the world at a glance 136 years of brand experiences 15.6 billion euros sales in 2011 ~ 47,000 employees worldwide Slide 3

4 Three Areas of Competence A global leader in brands and technologies Laundry & Home Care Beauty Care Adhesive Technologies 4Slide 4

5 Three areas of competence Henkel in North America Laundry & Home Care Beauty Care Adhesive Technologies Slide 5

6 Sustainability a long-term commitment at Henkel Examples of recent external recognition: Sector leader in DJSI six year in a row ( ) Slide 6

7 Achieving more with less: Our 20-year goal Become three times more efficient Triple the value we create for the footprint made by our operations, products and services. Slide 7

8 Efficiency: + 30% by 2015 More value 10% more NES per production unit More social progress and better quality of life Social Progress Performance Deliver more value Safety and Health 20% safer per million hours worked 15% less energy per production unit Energy and Climate at a reduced footprint Materials and Waste Water and Wastewater 15% less water per production unit Reduced footprint 15% less waste per production unit Slide 8

9 Contents 1. Henkel and our response to the sustainability challenge 2. Renewable materials for mainstream products/supply chains 3. Key factors for our future success Slide 9

10 More with less renewable materials in our innovation history: an example of Henkel laundry care products in EU Phosphate Free formula 1983 Slide 10

11 Henkel Sustainable Consumption Index A balanced approach in selection and decision Example: use of the toolkit for project evaluation vs. benchmark Raw materials Production Logistics Retailing Use Disposal Value Performance Wash Loads per Pallet Efficiency in Warehouse Washing Performance Health and Safety Easy Handling Stricter Labeling Social Progress Easy Handling Less Plastics Footprint Materials and Waste Packaging Reduction Dosage Recyclability Energy and Climate GWP of Raw Materials CO 2 Emissions Washing Temperature Water and Wastewater Water Incorporated Water used per Machine Slide 11

12 Measure and report sustainability improvements Henkel efforts in eco innovation to elevate sustainability baseline A science-based approach covering performance, footprints and social progress Addressing all key areas in business value chains and product life cycles Driving projects through INNOGATE with senior executives as gatekeepers Slide 12

13 Upgrade our sustainable product portfolio ( ) Leverage naturally-sourced, renewable, and biodegradable materials in our sustainable products Superior or equal performance Safer to handle and use by consumers Environment harmful wastes after use More Less Slide 13

14 Eco-innovation Identify and optimize all key aspects of our supply chains Slide 14

15 Understanding the right sustainability choices Example: palm and palm-kernel oils and derivatives Naturally-sourced commodity ingredients broadly used in many products Supply challenged by increasing demands and environmental concerns. Example: Surfactants derived from PO/PKO in detergents Slide 15

16 Fats & oils: environmental impact Extensive LCA analysis has been completed across a range of vegetable oils* Palm oil (PO) is potentially the most sustainable oil among commercial vegetable oils PO: high production yield, low agrochemical demand * Dr. Erich E. Dumelin, Life Cycle Assessment of Palm Oil and Vegetable Oils, SCI, Slide 16

17 The Roundtable on Sustainable Palm Oil CPG companies collaborate to do it right Henkel developed the certification plan of palm kernel oil and was the first company to purchase these certificates Slide 17

18 Purex Natural Elements Sustainability Features 95% naturally sourced ingredients (palm and/or coconut based surfactants; naturally softened water; fragrance extracts) 2x concentrated formulas 2x loads in same package 53% less packaging overall (vs. 1x) >25% recycled resin 54% less plastic 58% less corrugate Biodegradable ingredients* No unnecessary dyes DfE designation from EPA Feb 2008 * Biodegradable in 28 days (OECD 301) Slide 18

19 Dial Body Wash Patented Formula Example: Removed Polyethylene Glycol 8 (Petroleum derived) Replaced with Decyl Glucoside (Corn-derived) Clinical Properties Consumer Properties Material Properties Mildness Potential - In vitro Zein assay - Clinical assessments Consumer Performance Grade -Lather - Skin-Feel Low % Solids - Naturally-sourced renewable ingredients - Low % Total Carbon - Biodegradable ingredients Slide 19

20 Eco-innovation Identify and optimize all key aspects of our supply chains Slide 20

21 Understanding the right sustainability choices Cold water laundry detergents save energy in use Innovative chemistry and bio-chemistry can deliver parity cleaning performance in cold water e.g., leveraging novel bio-enzymatic cleaning technologies Consumer habit and practice have significant sustainability impacts on the intended energy saving users have to switch the knob! Slide 21

22 Natural Personal Care Barriers 64% consumers have tried natural personal care products Although... only 14% have become exclusive users WHY? Traditionally natural products have not met key barriers to trial Source: Mintel Natural and Organic Personal Care Products, March 2010 ( Forecasted) Includes: Facial care, body care, oral care, soap and bath, deodorant and baby products using natural and/or organic ingredients Slide 22

23 Natural Product Purchase Barriers Personal Care Natural Product Purchase Barriers Price Performance Unknown Brand Availability Source: Mintel Natural and Organic Personal Care Products, March 2010 ( Forecasted) Slide 23

24 Henkel products based on naturally-sourced and renewable formulation ingredients Key factors for those products successes in the marketplace Superior or at least parity performance Line Priced Trusted Brand Mass Aisle Slide 24

25 Contents 1. Henkel and our response to the sustainability challenge 2. Renewable materials for mainstream products/supply chains 3. Key factors for our future success Slide 25

26 Slide 26

27 Henkel Multi-Functional Adhesive makes paperbased products more sustainable Slide 27

28 Slide 28

29 Working with industrial partners on bio-surfactants research and development Henkel has applied sophorolipids surfactant in some of its glass cleaning products in Europe for its promising environmental and performance benefits The cost over performance ratio of bio-surfactants is a major hurdle for commercialization Need industry s collective commitments to improve technology, scale up production, increase demand, and educate consumers how? Slide 29

30 Partnering with major academic institutions Key focus areas Novel sustainable technologies Life cycle analysis, eco-innovation measurement tools Dynamics of consumer habits and practice Slide 30

31 Academic-industrial collaboration Center for Particulate and Surfactant Systems Green surfactant initiative for future industrial applications aiming for better performance and less environmental impact Examples: Novel surfactants / production technologies based on synthetic biology Green surfactant blends vs. conventional benchmarks Synergistic surfactant - enzyme interaction Modular Genetics bio-surfactants Slide 31

32 A future glimpse: The Algae Economy In collaboration with ASU, we from industry are asking Can algae or cyanobacteria photosynthesis be an effective alternative route to produce bio-based chemicals for CPG products? Recapture CO 2 from power generators or from the atmosphere? High-yield bioreactors turn algae into C12-C18 fatty matters? Future development platforms are emerging what kind of partnership do we need? Slide 32

33 Summary: sustainability partnership is a key factor throughout different parts of our business value chain Joint eco innovation Provide key competitive advantages throughout product life cycle Academic partners Develop novel tools w/ creative minds (e.g., at ASU and UARK) Industrial partners in the supply chain Acquire science-based applications for core businesses w/ common metrics Civil society inclusion Enhance credibility/transparency and gain public support Education and consumer engagement Change attitudes and behavior in the marketplace Slide 33

34 Thank you!