Offering Consumer-Relevant Solutions and Influencing Consumer Choices Uwe Bergmann OECD Corporate Responsibility Roundtable Paris, June 15th, 2009 Our Business Sectors and Top Brands Laundry / Home Care Cosmetic / Toiletries Adhesives Technologies Quality with Brands and Technologies 2 Sustainability − a Focus for the total Company Corporate Vision Focal Areas Corporate Values 3 A sustainable Business Model has to focus on the entire Value Chain Disposal Raw materials Use phase Transportation Distribution Manufacturing of products and packaging Manufacturing of ingredients 4 From Pioneering Certificates for Sustainable Palm Kernel Oil Henkel was the first company buying certificates for Sustainable Palm Kernel Oil within the RSPO scheme United Plantations, the Henkel supplier, was the first plantation getting endorsement from RSPO for their sustainability audit 5 Monitoring Surfactant Loads in Surface Waters (Rhine at Düsseldorf) 140 600 MBAS LAS 120 BiAS 500 400 80 300 60 BiAS [g/sec] MBAS, LAS [g/sec] 100 200 40 100 20 0 0 1958 1963 1968 1973 1978 1983 1988 1993 1998 2003 2008 6 Great Potential to deliver added Value & contribute to Sustainable Development 7 Influencing Consumer Choices: Attitudes vs. Behaviour Global retail consumers segmented by willingness to pay for products with environmental & social benefits – Survey of consumers in Brazil, Canada, China, France, Germany, India, the UK and the US. Source: The McKinsey Quarterly, March 2008. There is a large gap between consumer attitudes, willingness and actual behavior change The consumer will not compromise on performance, convenience or price 8 Identify desirable Improvement Options & suitable Approach(es) Energy Source Hot-Water System Shower or Bath Installation Product Design Consumer behavior 9 Identify desirable Improvement Options & suitable Approach(es) Energy Source Washing Machine Product Design Consumer behavior 10 Progress requires Time & Continuity: Persil Advert 1982 Cooperation to create a consistent Message: A.I.S.E. WashRight Campaign 12 Utilizing the Communication Portfolio to provide relevant Guidance Sustainability in Laundry Washing: Progress from 1979 to 2008 Dosage (Grams per Wash Cycle) Water (Liters per Wash Cycle) Energy per Wash Cycle (1978=100) Conclusions & Learnings The roles of both business and consumers are intrinsically linked in terms of the sustainable use of products. In the future, delivering performance based on both quality and responsibility will become increasingly important for consumer choices. We need to influence consumers’ choices by communicating the top performance of our products, the added value of more sustainable choices and thus enabling behavioral changes. 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. 15