wec’s ief european roundtable cleaner production: downstream expectations and industry cases

April 2005 2

WEC’s IEF European Roundtable

Cleaner production: Downstream Expectations and

Industry Cases

April 15. 2004, Hamburg

Michael Bahn

April 2005 3

Content

• The Henkel Group

• Sustainability orientation and management

• Case studies• Examples of Henkel projects

• Examples of Henkel know how used at customers

• Stakeholder dialogue

• Sustainability Reporting

4April 2005

Henkel Worldwide 2005

Sales 10,592 mill. euros 125 countries 50,000 employees

5

Three Areas of Competence, Four Business Sectors

Quality with Brands & Technologies

HomeCare

Adhesives, Sealants &Surface Treatment

PersonalCare

Consumer Industry

Business Portfolio

Sales and EBIT by business sector in 2004

Sales: 10,592 mill. euros

Laundry & Home Care

Cosmetics/Toiletries

Consumer and Craftsmen Adhesives

CorporateHenkel Technologies

EBIT: 800 mill. euros1)

16 %

33 %26 %

25 %

3 %

23 %

34 %26 %

14 %

EBIT business sectors: 910 mill. eurosEBIT Corporate: –110 mill. euros

1)excluding Corporate

April 2005 7

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 8

Sustainability at Henkel

• The three dimensions of sustainability are interdependent;

• Synergies as well as conflicts can arise.

• Expectations and priorities differ, between regions, stakeholders and over time

Economic success

Environmental protection

Social responsibility

Single „reconciliation“ of interests cannot achieve sustainable development and a sustainable society;

It demands: Continuous reassessment and readjustment Specific solutions for each case

Continuous and open dialogue with stakeholders

April 2005 9

Example 1 of Henkel projects

• Use of genetic modified organism (GMO) for the

production of alkaline proteases and their use in

detergents

• High concern of „green“ oriented people

Use of GMO

April 2005 10


" best case "

" worst case "

Mp 30°C70 l

MG MG

P 95°C155 l

BWG BWG

MJ per washing process

0 20 40 60 80 100

Manufacture of washing powder WashingDrying Ironing

90 oC, HDD, cotton

45 oC, compactat, mixed fibres

LCA washing

April 2005

• they perform in detergents as protein catalyst• remove protein spot, e.g. blood, milk...

• set up by microorganisms• not replaceable through other substances

Persil waste waterProtease

Proteinparticles

Example 1 of Henkel projectsAlkaline proteases in detergents

April 2005

by-product:Fertilizer

waste watertreatment

airemission

waste water

disposal

energy fermentation production of protease

raw material

packing “packing" of the enzyme in granular material

reconditioning enzyme concentrate extraction sterilization

dispatchable

ProteaseGranular Material

Example 1 of Henkel projectLCA protease production

April 2005

P300

BLAP-140

BLAP-260

0% 20% 40% 60% 80% 100%

P300

BLAP-140

BLAP-260renewable energy

fossile energy

Example 1 of Henkel projectsLCA protease production, primary energy consumption

April 2005 14

Example 1 of Henkel project

0% 20% 40% 60% 80% 100%

P 300

BLAP-wild

BLAP -140

BLAP -170Energy (regenerierbar)

Energie (fossil)

Protease production, primary energy consumption

April 2005 15


of agri-culturalorigin

of fossilorigin

of mineral origin

Energyrequired:12 MJ

Energyrequired:2 MJ

Energyrequired:2 MJ

Energyrequired:

27 MJ

Energyrequired:

8 MJInherent energy by fossilised

resources: 3 MJ

Inherent energy by photosynthesis: 17 MJ

Inherentenergyyield:7 MJ

Totalenergyrequirement:52 MJ

Inherentenergy:9 MJ

Energyrequirement:5 MJ

Inherentenergy:4 MJ

Enzymegranulate

Organicfertilizer

Manufacture ofpre-products

Wastewater treatment

Production ofthe protease

LCA, protease, primary energy

April 2005 16


solvent-based

solvent-less

dispersion

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

LCA, laminating adhesive primary energy consumption

April 2005 17


Liofol production

1%

polyol production

1%

other initial products

49%

polyol initial products

43%

Liofol logistics

6%

LCA, laminating adhesive primary energy allocation

April 2005 18


crude

oil eq

uival

ent

green

house e

ffect

smog

solid

was

tes

eutro

phicat

ion

acid

rain

solvent-based adhesive

solvent-less adhesive

water-based adhesivebetter than solvent-based adhesive

similar to solvent-based adhesive

much better than solvent-based adhesive

LCA, laminating adhesive, environmental impact

April 2005 19

Example 1 of customer projectsProduction costs of a beverage production

Administration

15%Depreciation

20%

Maintenance

10%

Raw material

10%

Energy

8%

Water

5%

Chemicals

2%

Disposal

7% Personnel

23%

April 2005 20

Example 1 of customer projects

0

50

100

150

200

250

300

350

400

450

One-phase

Two-phase

TD

M/y

ear

R & D chemicals

P3-Paradigm/Ecocare

P3-Ecocare

P3-Paradigm/One-phase

P3-Paradigm/Two-phase

KonzentratverwertungMembrananlageEnergieFrisch-/Abwasser

at 2.5 DM/m³ waste water

Process optimization, dairy, customer view

April 2005 21

Example 1of customer projects

0

50

100

150

200

250

300

350

400

450

One-phase

Two-phase

TD

M/y

ear

C & D chemicals

P3-Paradigm/Ecocare

P3-Ecocare



KonzentratverwertungMembrananlage

energyfresh-/waste water

Process optimization, dairy, expanded view


April 2005 22

Example 1of customer projects

0

50

100

150

200

250

300

350

400

450

One-phase

Two-phase

TD

M/y

ear

C & D chemicals

P3-Paradigm/Ecocare

P3-Ecocare



wasteMembrane plantenergiefresh-/waste water

Process optimization, dairy, scenario input


April 2005 23


0%

Energy demand

Greenhouse effect

Acid rain

Water pollution

Solid waste

Cleaning costs*

Water consumption

50% 100%

conv. 2-phasecleaning

conv. 1-phase cleaning

P3-paradigm

* average, (depending on waste water fees)

Dairy summary

April 2005 24


uncontrolled, critical failures

uncontrolled failures

controlled, critical failurescontrolled failures

1111

1919

44

6464

77

66

22

1616

(0)(0)

(0)(0)

(0)(0)

(6)(6)

Product A Product B

FMEA, comparison of failure situations

April 2005 25


people organization customer technology

FMEA categories of failures

April 2005 26

• 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 sustain-

ability 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

Stakeholder Dialogue, GermanyProject appoach

April 2005 27

N 1 Effectivness of consumer informationN 2 Fullfillment of voluntary commitments of detergent industryN 3 Number of companies publishing a sustainability reportN 4 Implementation of nine principles of Global CompactN 5 Energy consumption per kg washN 6 Part of poorly degradable organics per kg washN 7 Use of detergent per kg washN 8 Ratio of cost für detergents vs all private money spendingN 9 Average ROI in detergent industryN 10 Time for implementation of innovations as result of environmental

problems and consumere needsN 11 Innovations during a certain time periodeN 12 Number of washing cycles of during textiles life timeN 13 Time spending per kg washN 14 Distribution of time in a housholdN 15 Number of accidents at workplaceN 16 Ratio of health related questions to number of sold detergent packsN 17 Competence and willingness fordialogue of industry N 18 Wash temperature with constant hygiene standards

Stakeholder Dialogue, Germany First list of indicators

April 2005 28

Stakeholder Dialogue, Germany

• N 1 Efficiency of consumer information•

• N 5 Energy consumptionper kg wash

• N 6 Part of poorly biodegradablesper kg wash

• N 7 Use of detergent per kg wash

• N 15 Number of work place accidents

• N 17 Competence and willingness for dialogue of industry

N 1

N 5

N 6

N 7

N 15

N 17

so social indicatoren environmental indicatorec economic indicator

so env ecoAgreed quantitative indicators

April 2005 29

“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)

Stakeholder Dialogue, GermanyIndustry specific definition of Sustainability

April 2005 30


Detergent Industry

Supplier /Shippers

Job Holder Shareholders

/Investors

Management

Trade

Consumers

State

NGO’s

Detergent Product

Life Cycle Use

Distribution Packaging

Production of Detergent

Production of Ingredients

Disposal

Selection of research fields

April 2005 31(black = high relevance, grey = moderate relevance, white = low relevance)

Life steps

Production of

Ingredients

Production of Detergent

Packaging Distribution Use Disposal

Energy

CO2

CSB/BSB

Waste

Resources

Risks

Stakeholder Dialogue, GermanySelection of research fields, environment

April 2005 32(black = high relevance, grey = moderate relevance, white = low relevance)

Actors

SocialSustainability Aspects

SupplierShippers

Companies Trade Consu-mers

State NGO’sJob

HolderManage-ment

Share-holder/

Investors

Health

Social Responsibility

Equity

IndividualContentment

Satisfaction of Needs

Participation/Integration/Communication

Education

Stakeholder Dialogue, GermanySelection of research fields, social aspects

April 2005 33


Actors

EconomicalSustainability Aspects

Supplier Shippers

Companies Trade Consu-mers

State NGO’s

Job Holder

Manage-ment

Share-holder/

Investors

EconomicalResponsibility

Stability

QualitativeGrowth

Development of price

Employment

Sustainable co-vering of succ.

Future/ Innovation

Quality

(black = high relevance, grey = moderate relevance, white = low relevance)

Selection of research fields, economic aspects

April 2005 34

1. Reduction of wash temperature / energy2. Reduction of pollutants to the aquatic

environment3. Protection of resources 4. Price stability through competition5. Innovative ability6. Washing as value pertinent of fabric life7. Convenience8. Role allocation in the washing process9. Health / hygiene as a result of laundry

Stakeholder Dialogue, GermanyIdentified research fields after 1st workshop

April 2005 35


Research Fields Indicators

global issues effectiveness of consumer communication

fulfilling of voluntary agreements number of companies with

sustainability report compliance with “Global Compact

Research fields and indicators I

April 2005 36



1. reduction of wash tempera-ture / energy

energy demand per kg laundry

2. reduction of pollutants to the aquatic environment

poorly biodegradables per kg laundry

3. protection of resources consumption of detergent 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

Research fields and indicators II

April 2005 37



6. washing as value pertaining process for textiles

average number of wash cycles of textiles during their life time

7. health / hygiene number of health based consumer complaints

wash temperature at constant standard of hygiene

8. ease of household task time per kg laundry

9. role allocation percentage of men who do laundry

Research fields and indicators III

April 2005 38

• 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 co-operation with other actors (consumer behaviour, system innovations).

Stakeholder Dialogue, GermanyConclusion

April 2005 39

Industry and Sustainability

A common industry approach aiming to promote and demonstrate continual

improvement in the industry’s sustainability profile

The A.I.S.E. Charter The A.I.S.E. Charter ffoorr Sustainable Sustainable CleaningCleaning

April 2005 40

Industry and Sustainability A.I.S.E.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 41

Industry and Sustainability A.I.S.E. recordA.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 42

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 43

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.’’

Industry and Sustainability Sustainable Development

Source: A.I.S.E.

April 2005 44

Voluntary safety information

A.I.S.E. CHARTER FOR SUSTAINABLE CLEANING

POLICIES PROCEDURES INDICATORS OUTPUT

economic

social

environ-mental

Life cycle phase

Raw materials(incl. chemical &packaging)Resource useManufacturingDistributionProduct use& review

Economic

Verificationof companyprocedures

Data aggregation

Report to A.I.S.E.

Social

Environment

Verificationof data

calculation

Annual Sustainable Development

Report

Charterlogo

Source: A.I.S.E.

April 2005 46

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

Industry and Sustainability Conclusion A.I.S.E.Conclusion A.I.S.E.

Source: A.I.S.E.

April 2005 47

Sustainability Report Henkel 2004

Published on 16.03.2005

48April 2005

Sustainability Report Sustainability Performance Henkel 2004

April 2005 49

Sustainability Report 2004Expert statements from regions

„Trust takes years to build, but only a mistake or two to lose.“ „Recognizing and utilizing

social challenges as a motor for sustainable product innovations.“

„Accepting national challenges as a way to gaining public confidence.“

„Successful companies can exist in successful and sustainable societies."

„Being a good citizen and an active participant in society."

Dr. P.D. Jose, Indian Institute of Management Bangalore, India

Christian Hochfeld,Öko-Institut e.V., (Institut for Applied Ecology) Berlin, Germany

Henrique B. Cavalcanti,Präsident of FUNATURA, Brasilia

Dr. Mikhail Kozeltsev, Russian Regional Environmental Center (RREC)Moscow, Russia

Dr. Allen White,Tellus Institut, Boston, Massachusetts, USA

April 2005 50

Our Vision

Henkel is a leader with brands and technologies that

make people's lives easier, better and more beautiful.

wec’s ief european roundtable cleaner production: downstream expectations and industry cases

Documents

henkel project0

henkel projects90 oc

primary energyexample

business ethics2003henkel

laminating adhesive

euros1 ebit business

environmental impactexample

sustainable societyit