This document summarizes a presentation on sustainability trends in the household cleaning products industry. It notes that green claims are increasingly common but often vague and unsubstantiated. Consumers want more education on sustainability claims. The presentation identifies five key sustainability issues for the industry and argues that enzymes can help address these issues and provide benefits like high performance at low temperatures. It provides examples of brands that have grown by incorporating stronger sustainability messages and scientific documentation of their products' environmental profile through life cycle assessments.

1. EB DIRECTORS 090124 MEETING, BÅSTAD, SWEDEN
From sustainability
Trends and Labels
To real business
Actions and Value!
Claus Stig Pedersen
Head of Corporate Sustainability
Novozymes A/S

2. NOVOZYMES 2 03/11/14 PRESENTATION

3. NOVOZYMES 3 03/11/14 PRESENTATION
Enable
9.000.000.000 people
live decent lives
within planetary boundaries
In 2050

4. NOVOZYMES 4 11/03/14 PRESENTATION
Global Mega Trends
SUSTAINABILITY ISSUES WILL GROWINGLY IMPACT ALL
BUSINESSES - DIRECTLY OR INDIRECTLY, - POSITIVELY OR
NEGATIVELY

5. GROWING BUSINESS RESPONSES
TO THE GROWING SUSTAINABILITY ISSUES
TO AVOID RISKS
TO REDUCE COSTS
TO TURN CHALLENGES INTO OPPORTUNITIES

6. NOVOZYMES 6 03/11/14 PRESENTATION
SUSTAINABILITY LABELLING IN HHC
- EXAMPLES

7. THE HHC INDUSTRY IS SAYING A LOT…
“…easy to rinse…”
“…phosphate-free product
contains biodegradable
surfactants and enzymes…”
“…environment friendly…”
“…features the A.I.S.E.
Sustainable Cleaning logo…” “…free of phosphate,
aluminum and alkaline…”
“…phosphate-free product
contains biodegradable
surfactants and enzymes…”
“…free from bleach…”
“…Biodegradable
product…”
“…features the A.I.S.E. Clean
Right logo…”
“…A.I.S.E., Cleaner Planet Plan
and Sustainable Cleaning…”
“…pack made from post-consumer
recycled material/ recycled material…”
“… effective in cold water”…
“…less energy/save
energy…”
“…contains biodegradable
surfactants…”
“…contains plant based
ingredients…”
“…approved by EU Ecolabel…”
“…dermatologically
tested…”
“…hypoallergenic…”
IS ANYBODY LISTENING? OR UNDERSTANDING?
DO THE CLAIMS DRIVE CONSUMER ACTIONS AND BUSINESS
VALUE?, - OR THE OPPOSITE?

8. NOVOZYMES 8 03/11/14 PRESENTATION

9. NOVOZYMES 9 03/11/14 PRESENTATION

10. Green claims in household care products are
increasingly common, but remain vague and
unsubstantiated in many cases
Source: Terrachoice, The Sins of Greenwashing Home and Family Edition (2010)

11. Corporate Sustainability
11
Consumers want to “be green” and seek
solutions and reliable information / education
How frequent US consumers consider
sustainanility when shopping
Everytime
Regularly
Sometimes
7%
20%
44%
Source: American consumer research study
29%
71%
Understand Sustainabilty Claims
Need more education on
sustainability claims
Rarely 20%
Never 10%
71% wish companies do a better job of helping
them understand the sustainability claims used

12. NOVOZYMES 12 03/11/14 PRESENTATION

13. NOVOZYMES 13 03/11/14 PRESENTATION

14. NOVOZYMES 14 03/11/14 PRESENTATION

15. NOVOZYMES 15 03/11/14 PRESENTATION

16. NOVOZYMES 16 03/11/14 PRESENTATION
Retailers demand products that perform better in a life
cycle perspective and look for scientific documentation

17. NOVOZYMES 17 03/11/14 PRESENTATION
Confusion
=
Opportunity

18. NOVOZYMES 18 11/03/14 PRESENTATION
Life Cycle Assessments (LCAs) are the method
to scientifically document sustainability
improvements of the product value chain
Enzyme
production
Detergent
formulation
Chemical
production
Washing
2.7 kg laundry
Heat production
Fuel extraction
Wastewater
treatment
3rd party verified LCAs are required
By ISO when sustainability is used
for sales, marketing and branding.

19. Corporate Sustainability
19
The HHC industry must address five key
sustainability issues…
Effective handling of these issues are likely to impact risk and
cost profile positively, open business opportunities and add brand value
Source: Internal analysis

20. Corporate Sustainability
20
… and enzymes address these sustainability
issues in detergents and deliver tangible benefits
Enzymes address all these critical issues and help build brand value
• High wash
performance at
low temperatures
• Reduce raw
materials use
• A renewable
resource
• Safe for consumers
• Save time and
effort in hand
washing
• Enables
compaction
• Reduce
eutrophication,
aquatic toxicity
• Biodegradable
Source: Internal analysis

21. Corporate Sustainability
21
SUSTAINABILITY PAYS….
Persil Small and Mighty, Unilever,
Overtook the powder variant and as of 2013, was the
biggest seller in Unilever UK & Ireland’s laundry portfolio
Tide PODS, P&G
Captured more than 70% of liquid tablet detergent
sales in the US In just 10 months
Purex Natural Elements, Henkel,
Sales has outgrown other products in the category
for three years in a row

22. Concluding remarks
 The global sustainability agenda is robust, strong,
and will significantly influence all companies
 The HHC industry has successfully used sustainability
to label products and support the business
 Growing transparency, consumer and retailer
demands provide both challenges and opportunities
 Sustainability pays when …
 real action is taken to improve product performance
 product perfomance improvements are scientifically
documented (LCA´s, ISO)
 Improvements are translated into stories and claims that
consumers trust and find appealing

23. Lets change the world
together !