WEC’s IEF European Roundtable
Cleaner production:
Downstream Expectations and
Industry Cases
April 15. 2004, Hamburg
Michael Bahn
April 2005
2
Content
• The Henkel Group
• Sustainability orientation and management
• Case studies
•
•
•
•
April 2005
Examples of Henkel projects
Examples of Henkel know how used at customers
Stakeholder dialogue
Sustainability Reporting
3
Henkel Worldwide 2005
 Sales 10,592 mill. euros  50,000 employees  125 countries
April 2005
4
Three Areas of Competence, Four
Business Sectors
Home
Care
Personal
Care
Adhesives, Sealants &
Surface Treatment
Consumer
Industry
Quality with Brands & Technologies
5
Business Portfolio
Sales and EBIT by business sector in 2004
Sales: 10,592 mill. euros
EBIT: 800 mill. euros1)
EBIT business sectors:
EBIT Corporate:
3%
26 %
14 %
34 %
23 %
910 mill. euros
–110 mill. euros
26 %
33 %
16 %
25 %
1)excluding
Laundry & Home Care
Cosmetics/Toiletries
Corporate
Consumer and Craftsmen Adhesives
Henkel Technologies
Corporate
Sustainability at Henkel
1959
Regular ecological checks for detergents and household cleaners
1971
Central department for environmental and consumer protection
1982
Principles of Environmental and Consumer Protection
1983
Market launch of the first phosphate free laundry detergent
1991
Signing of Business Charter for Sustainable Development
1992
First Environment Report
1994
Strategy: competitive advantages through eco-leadership
1997
Integrated management systems and world-wide audits for
safety, health, environment and quality
2000
Code of conduct and business ethics
2003
Henkel joins the Global Compact Initiative of the UN
2004
Code of Coporate Sustainability
April 2005
7
Sustainability at Henkel
• The three dimensions of sustainability
are interdependent;
Economic
success
Social
Environmental
responsibility
protection
• Synergies as well as conflicts can
arise.
• Expectations and priorities differ,
between regions, stakeholders and
over time
 Single „reconciliation“ of interests cannot achieve sustainable
development and a sustainable society;
 It demands:
April 2005
 Continuous reassessment and readjustment
 Specific solutions for each case
 Continuous and open dialogue with stakeholders
8
Example 1 of Henkel projects
Use of GMO
• Use of genetic modified organism (GMO) for the
production of alkaline proteases and their use in
detergents
• High concern of „green“ oriented people
April 2005
9
Example 1 of Henkel projects
LCA washing
" worst case "
" best case "
P
95°C
155 l
Mp 30°C
70 l
0
MG
20
90 oBWG
C, HDD, cotton
MG
40
BWG
45 oC, compactat, mixed fibres
60
80
100
MJ per washing process
Manufacture of washing powder
Drying
April 2005
Washing
Ironing
10
Example 1 of Henkel projects
Alkaline proteases in detergents
• they perform in detergents as protein catalyst
• remove protein spot, e.g. blood, milk...
Protein
particles
waste water
Persil
Protease
April 2005
• set up by microorganisms
• not replaceable through other substances
Example 1 of Henkel project
LCA protease production
energy
fermentation
production of protease
waste
water
waste water
treatment
reconditioning
enzyme concentrate extraction
sterilization
packing
“packing" of the enzyme
in granular material
raw
material
April 2005
by-product:
Fertilizer
disposal
dispatchable
air
emission
Protease
Granular
Material
Example 1 of Henkel projects
LCA protease production, primary energy consumption
renewable energy
BLAP-260
fossile energy
BLAP-140
P300
0%
April 2005
20%
40%
60%
80%
100%
Example 1 of Henkel project
Protease production, primary energy consumption
BLAP -170
Energy (regenerierbar)
Energie (fossil)
BLAP -140
BLAP-wild
P 300
0%
April 2005
20%
40%
60%
80%
100%
14
Example 1 of Henkel projects
LCA, protease, primary energy
Enzyme
granulate
Inherent energy by
photosynthesis: 17 MJ
Energy
required:
12 MJ
of agricultural
origin
Energy
required:
2 MJ
of mineral
origin
Energy
required:
2 MJ
of fossil
origin
Total
energy
requirement:
52 MJ
Energy
required:
27 MJ
Inherent
energy:
9 MJ
Inherent
energy
yield:
7 MJ
Organic
fertilizer
Energy
required:
Inherent
energy by fossilised
resources: 3 MJ
8 MJ
Energy
requirement:
5 MJ
Inherent
energy:
4 MJ
April 2005
Manufacture of
pre-products
Production of
the protease
Wastewater
treatment
15
Example 2 of Henkel projects
LCA, laminating adhesive primary energy consumption
dispersion
solvent-less
solvent-based
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
April 2005
16
Example 2 of Henkel projects
LCA, laminating adhesive primary energy allocation
polyol initial
products
43%
other initial
products
49%
Liofol
logistics
6%
April 2005
polyol
production Liofol
production
1%
1%
17
Example 2 of Henkel projects
LCA, laminating adhesive, environmental impact
solvent-less adhesive
water-based adhesive
solvent-based adhesive
April 2005
much better than solventbased adhesive
better than solvent-based
adhesive
similar to solvent-based
adhesive
18
Example 1 of customer projects
Production costs of a beverage production
Energy
Raw material
Water
5%
8%
Chemicals
2%
Disposal
7%
Personnel
23%
10%
Maintenance
10%
Depreciation
20%
April 2005
Administration
15%
19
Example 1 of customer projects
Process optimization, dairy, customer view
450
Konzentratverwertung
Membrananlage
Energie
Frisch-/Abwasser
R & D chemicals
at 2.5 DM/m³ waste water
400
TDM/year
350
300
250
200
150
100
50
0
April 2005
Onephase
Twophase
P3Paradigm/
Ecocare
P3Ecocare
P3P3Paradigm/ Paradigm/
One-phase Two-phase
20
Example 1of customer projects
Process optimization, dairy, expanded view
450
Konzentratverwertung
Membrananlage
energy
fresh-/waste water
C & D chemicals
at 2.5 DM/m³ waste water
400
TDM/year
350
300
250
200
150
100
50
0
April 2005
Onephase
Twophase
P3Paradigm/
Ecocare
P3Ecocare
P3P3Paradigm/ Paradigm/
One-phase Two-phase
21
Example 1of customer projects
Process optimization, dairy, scenario input
450
waste
Membrane plant
energie
fresh-/waste water
C & D chemicals
at 2.5 DM/m³ waste water
400
TDM/year
350
300
250
200
150
100
50
0
April 2005
Onephase
Twophase
P3Paradigm/
Ecocare
P3Ecocare
P3P3Paradigm/ Paradigm/
One-phase Two-phase
22
Example 1 of customer projects
Dairy summary
conv. 2-phase
cleaning
conv. 1-phase
cleaning
Water consumption
Energy demand
P3-paradigm
Greenhouse effect
Acid rain
Water pollution
Solid waste
Cleaning costs*
* average,
(depending on waste water
fees)
April 2005
0%
50%
100%
23
Example 2 of customer projects
FMEA, comparison of failure situations
Product A
11
19
4
64
April 2005
Product B
7
6
2
16
(0)
(0)
(0)
(6)
uncontrolled,
critical failures
uncontrolled
failures
controlled, critical
failures
controlled failures
24
Example 2 of customer projects
FMEA categories of failures
people
April 2005
organization
customer
technology
25
Stakeholder Dialogue, Germany
Project appoach
•
•
•
•
•
•
•
•
•
•
Discussion of the goal of the study between IKW and Oldenburg*
Working definition of a sustainable detergent industry
Check of previous (mainly environment-orientated) activities of IKW
Development of sustainability matrixes
1st stakeholder-workshop: Presentation and discussion of sustainability matrixes
Identification of selected research fields
Determination of Indicators for each research field
Stakeholder-Interviews: Examination of the research fields and the
indicators
2nd stakeholder-workshop: Final predefinition of the research fields
and Indicators
Preparation of the final report
* Meetings between IKW and Oldenburg after all relevant steps
April 2005
26
Stakeholder Dialogue, Germany
First list of indicators
N1
N2
N3
N4
N5
N6
N7
N8
N9
N 10
N 11
N 12
N 13
N 14
N 15
N 16
N 17
N 18
April 2005
Effectivness of consumer information
Fullfillment of voluntary commitments of detergent industry
Number of companies publishing a sustainability report
Implementation of nine principles of Global Compact
Energy consumption per kg wash
Part of poorly degradable organics per kg wash
Use of detergent per kg wash
Ratio of cost für detergents vs all private money spending
Average ROI in detergent industry
Time for implementation of innovations as result of environmental
problems and consumere needs
Innovations during a certain time periode
Number of washing cycles of during textiles life time
Time spending per kg wash
Distribution of time in a houshold
Number of accidents at workplace
Ratio of health related questions to number of sold detergent packs
Competence and willingness fordialogue of industry
Wash temperature with constant hygiene standards
27
Stakeholder Dialogue, Germany
Agreed quantitative indicators
•
•
N1
•
N5
•
•
N6
N7
so env eco
Efficiency of consumer information









Energy consumption
per kg wash




Part of poorly biodegradables
per kg wash

N1
N5

N6


Use of detergent
per kg wash




N7

•
•
N 15
N 17
Number of work place accidents
Competence and willingness
for dialogue of industry







N 15
N 17

April 2005
so social indicator
en environmental indicator
ec economic indicator
28
Stakeholder Dialogue, Germany
Industry specific definition of Sustainability
“A detergent industry (people in industry, the companies and
associations) contributes to sustainability when it accepts its
social, economic and ecological responsibility within the frame
of its own responsibility (products, production, value chain) and
for the foreseeable future, as well as it participates and actively
promotes the industry related, relevant actions towards a
sustainable development using optimal means and methods.”
(agreed at the stakeholder-workshop of 2nd October 2001)
April 2005
29
Stakeholder Dialogue, Germany
Selection of research fields
State
Production of
Ingredients
Disposal
Use
Distribution
April 2005
Detergent
Product
Life Cycle
Production
of Detergent
Packaging
Consumers
NGO’s
Supplier
/Shippers
Job Holder
Detergent
Industry
Shareholders
/
Investors
Trade
Management
30
Stakeholder Dialogue, Germany
Selection of research fields, environment
Life
steps
Production
of
Ingredients
Production
of Detergent
Packaging
Distribution
Use
Disposal
Energy
CO2
CSB/BSB
Waste
Resources
Risks
(black =April
high
relevance, grey = moderate relevance, white = low relevance)
2005
31
Stakeholder Dialogue, Germany
Selection of research fields, social aspects
Actors
Social
Sustainability
Aspects
Supplier
Shipper
s
Companies
Job
Manag
ShareHolder
e-ment
holder/
Investor
s
Trade
Consumers
State
NGO’s
Health
Social
Responsibility
Equity
Individual
Contentment
Satisfaction
of Needs
Participation/
Integration/
Communicatio
n
Education
(blackApril
= high
2005 relevance, grey = moderate relevance, white = low relevance)
32
Stakeholder Dialogue, Germany
Selection of research fields, economic aspects
Actors
Economical
Sustainability
Aspects
Supplier
Shippers
Companies
Job
Holder
Management
Trade
Shareholder/
Investors
Consumers
State
NGO’s
Economical
Responsibility
Qualitative
S
Growth
ta
bi
Development
li
of price
ty
Employment
Sustainable covering of succ.
Future/ Innovation
Quality
(blackApril
= high
2005 relevance, grey = moderate relevance, white = low relevance)
33
Stakeholder Dialogue, Germany
Identified research fields after 1st workshop
1. Reduction of wash temperature / energy
2. Reduction of pollutants to the aquatic
3.
4.
5.
6.
7.
8.
9.
April 2005
environment
Protection of resources
Price stability through competition
Innovative ability
Washing as value pertinent of fabric life
Convenience
Role allocation in the washing process
Health / hygiene as a result of laundry
34
Stakeholder Dialogue, Germany
Research fields and indicators I
Research Fields
global issues
Indicators
 effectiveness of consumer
communication
 fulfilling of voluntary agreements
 number of companies with
sustainability report
 compliance with “Global Compact
April 2005
35
Stakeholder Dialogue, Germany
Research fields and indicators II
Research Fields
Indicators
1. reduction of wash temperature / energy
2. reduction of pollutants to
the aquatic environment
3. protection of resources
 energy demand per kg laundry
4. price development
 Price of detergent in relation to cost of
living
 Average return in the detergent industry
5. ability for innovations
 implementation time as a reaction to
consumer needs or environmental
problems
 innovations during a time period
April 2005
 poorly biodegradables per kg laundry
 consumption of detergent per kg
laundry
36
Stakeholder Dialogue, Germany
Research fields and indicators III
Research Fields
Indicators
6. washing as value pertaining  average number of wash cycles of
textiles during their life time
process for textiles
 number of health based consumer
7. health / hygiene
complaints
 wash temperature at constant
standard of hygiene
8. ease of household task
9. role allocation
April 2005
 time per kg laundry
 percentage of men who do
laundry
37
Stakeholder Dialogue, Germany
Conclusion
• The detergent industry did their environmental
homework.
• The central challenges exist within the scope of
an extended sustainability understanding (Ease
of household tasks, rate of return, role
understanding).
• Further progress will emerge only in cooperation with other actors (consumer
behaviour, system innovations).
April 2005
38
Industry and Sustainability
The A.I.S.E. Charter
for Sustainable
Cleaning
A common industry approach aiming to
promote and demonstrate continual
improvement in the industry’s
sustainability profile
April 2005
39
Industry and Sustainability
A.I.S.E.
• International Association for Soaps, Detergents
•
•
•
•
•
and Maintenance products
In place since 1952
35 National Associations in 31 countries
988 companies, from SMEs to multinationals
Representing both consumer good and
Industrial/Institutional services
Interacting with key EU/international
stakeholders (EU Commission, Parliament,
NGOs, UN etc)
Source: A.I.S.E.
April 2005
40
Industry and Sustainability
A.I.S.E. record
• An industry perceived as having a key role in bringing hygiene
and well-being to society,
• but somewhat suffering from its “chemicals” links…
• A great number of individual activities towards human &
environmental safety,
• coupled with an evolving legislation framework
• A good record of voluntary pan-European industry action:
• 1998-2003 : A.I.S.E. Code of Good Environmental Practice in 18
countries, incl. great achievements, coupled with the washright
campaign
• 2000-2004 : Joint A.I.S.E./Cefic HERA project on Human and
Environmental Risk Assessment
Source: A.I.S.E.
April 2005
41
Industry and Sustainability
A.I.S.E expectations
We want to be considered as a responsible and sustainable
industry.
• Reinforce the importance that our industry attaches to
operating towards the best interests of society
• Address the external perception that our industry is not
always operating in the best interests of sustainability
• Thus, demonstrate that:
• Enormous strides are already being made towards
sustainability among our member companies
throughout Europe;
• Our record is impressive and will become more so as
the Charter progresses
Source: A.I.S.E.
April 2005
42
Industry and Sustainability
Sustainable Development
Definition,translated for industry
World Business Council for Sustainable Development
(WBCSD):
• Business must continue to do the things that we have
•
•
been doing like innovation and eco-efficiency
But we need to go beyond this to pro-actively set up
partnerships with governments and NGOs to deliver
products and services that meet existing and
emerging consumer and societal needs
We need to establish the models and framework to
make such innovation possible and economically
feasible.’’
Source: A.I.S.E.
April 2005
43
Voluntary safety information
April 2005
44
A.I.S.E. CHARTER FOR SUSTAINABLE CLEANING
POLICIES
economic
social
environmental
Source: A.I.S.E.
PROCEDURES
Life cycle phase
Raw materials
(incl. chemical &
packaging)
Resource use
Manufacturing
Distribution
Product use
& review
Verification
of company
procedures
INDICATORS
Economic
Social
Environment
Verification
of data
calculation
OUTPUT
Charter
logo
Annual
Sustainable
Development
Report
Data
aggregation
Report
to A.I.S.E.
Industry and Sustainability
Conclusion A.I.S.E.
With the Charter in place we:
• Promote sustainability as the guiding principle of all our work
• Further contribute to the image of a ‘responsible and
sustainable industry’
• Promote the dialogue
• Between suppliers and users (consumers / customers) of
our goods and services
• Between our industry and external stakeholders, and the
public in general
Source: A.I.S.E.
April 2005
46
Sustainability Report Henkel 2004
Published on 16.03.2005
April 2005
47
Sustainability Report
Sustainability Performance Henkel 2004
April 2005
48
Sustainability Report 2004
Expert statements from regions
„Trust takes years to build,
but only a mistake or two to
lose.“
Dr. Allen White,
Tellus Institut, Boston, Massachusetts, USA
„Successful companies can
exist in successful and
sustainable societies."
Dr. P.D. Jose, Indian Institute of
Management Bangalore, India
„Being a good citizen and an
active participant in society."
„Recognizing and utilizing
social challenges as a
motor for sustainable
product innovations.“
Christian Hochfeld,
Öko-Institut e.V.,
(Institut for Applied Ecology)
Berlin, Germany
„Accepting national
challenges as a way to
gaining public confidence.“
Dr. Mikhail Kozeltsev,
Russian Regional Environmental Center (RREC)
Moscow, Russia
Henrique B. Cavalcanti,
Präsident of FUNATURA, Brasilia
April 2005
49
Our Vision
Henkel is a leader with brands and technologies that
make people's lives easier, better and more beautiful.
April 2005
50