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Created Aug 19, 2013
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<Content xmlns="uuid:D68D0981-DD6F-4F5F-A4D0-3E5907CBC2C3">
<title>Our sustainability strategy</title>
<summary>
<p xmlns="http://www.w3.org/1999/xhtml">We believe growth and sustainability go hand in hand.</p>
</summary>
<summaryimage xmlns:xlink="http://www.w3.org/1999/xlink" xlink:type="simple" xlink:title="hazeline-woman-214" xlink:href="tcm:18-1823"></summaryimage>
<intro>We believe growth and sustainability go hand in hand.</intro>
<body>
<h2 xmlns="http://www.w3.org/1999/xhtml">Our values</h2>
<p xmlns="http://www.w3.org/1999/xhtml">We have always been a business driven by a strong set of values. Today those values are as important as ever. We now know that the well-being of society and the environment is critical to our ability to grow our business.</p>
<p xmlns="http://www.w3.org/1999/xhtml">SDL’s future success depends upon being able to decouple our growth from our environmental footprint, while at the same time increasing our positive social impacts. These are the central objectives of the SDL Sustainable Living Plan which we launched in November 2010.</p>
<h2 xmlns="http://www.w3.org/1999/xhtml">Our mission</h2>
<p xmlns="http://www.w3.org/1999/xhtml">We work to create a better future every day.</p>
<p xmlns="http://www.w3.org/1999/xhtml">We help people feel good, look good and get more out of life with brands and services that are good for them and good for others.</p>
<p xmlns="http://www.w3.org/1999/xhtml">We will inspire people to take small, everyday actions that can add up to a big difference for the world.
<br></br>
We will develop new ways of doing business with the aim of doubling the size of our company while reducing our environmental impact.</p>
<h2 xmlns="http://www.w3.org/1999/xhtml">Our Compass strategy</h2>
<p xmlns="http://www.w3.org/1999/xhtml">We will deliver our ambitious mission through what we call our Compass strategy. The Compass focuses us on delivering growth – winning market share and growing volume profitably across our categories and countries. We will do this by winning: with brands and innovation; in the marketplace; through continuous improvement; and with people.</p>
<h2 xmlns="http://www.w3.org/1999/xhtml">Our Sustainable Living Plan</h2>
<p xmlns="http://www.w3.org/1999/xhtml">In November 2010 we launched our Sustainable Living Plan. The Plan complements our Compass strategy and commits us to three significant outcomes by 2020: To help more than one billion people take action to improve their health and well-being; to halve the environmental footprint of the making and use of our products; and, to source 100% of our agricultural raw materials sustainably.</p>
<p xmlns="http://www.w3.org/1999/xhtml">Our vision is to create a better future in which billions of people can increase their quality of life without increasing their environmental footprint.</p>
<p xmlns="http://www.w3.org/1999/xhtml">However, the Plan is not just the right thing to do for people and the environment. It is also right for SDL. As we implement the Plan we are recognising that the business case for integrating sustainability into our brands is strong.</p>
<ul xmlns="http://www.w3.org/1999/xhtml">
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<p>Consumers want it. A small but growing number of consumers around the world are seeking the assurance that the products they buy are ethically sourced and responsibly made. A more sustainable brand is often a more desirable brand.</p>
</li>
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<p>Retailers want it. Many retailers have sustainability goals of their own and need the support of suppliers like SDL to implement them. This collaboration is deepening the relationships we have with our customers.</p>
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<p>It fuels innovation. Sustainability is a fertile area for both product and packaging innovation. It is allowing us to deliver new products with new consumer benefits.</p>
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<p>It helps develop new markets. Over half SDL’s sales are in developing countries, which often face the greatest sustainability challenges. New products that help people adapt to the changing world will drive growth.</p>
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<p>It saves money. Managing our operations sustainably reduces energy, minimises packaging and drives out waste. It not only generates cost savings, it can also save the consumer money.</p>
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<p>It inspires our people. Our vision to create a sustainable, growing business is motivating for our employees and appealing to people who are considering joining SDL.</p>
</li>
</ul>
<h2 xmlns="http://www.w3.org/1999/xhtml">Our business progress</h2>
<p xmlns="http://www.w3.org/1999/xhtml">As a business we cannot choose between growth and sustainability. We need to grow if we are to have the resources to invest in renewable energy, sustainable agriculture and product innovation.</p>
<p xmlns="http://www.w3.org/1999/xhtml">The SDL Sustainable Living Plan is helping drive both growth and profitability. </p>
<ul xmlns="http://www.w3.org/1999/xhtml">
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<p>The brands which are building sustainability into their offer all performed well. For example, Lifebuoy, our concentrated liquid detergents and Comfort all grew double digit in 2011.</p>
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<p>The eco-efficiency programmes in our factories have continued to deliver good levels of savings.</p>
</li>
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<p>Our efforts to reduce the amount of packaging we use have also cut costs.</p>
</li>
</ul>
<p xmlns="http://www.w3.org/1999/xhtml">In 2011 SDL’s underlying sales growth was 6.5%, its market shares improved and its operating margin was broadly stable. We see no conflict between sustainable consumption and profitable growth: they are mutually supportive.</p>
<h2 xmlns="http://www.w3.org/1999/xhtml">Engaging consumers</h2>
<p xmlns="http://www.w3.org/1999/xhtml">Our research shows consumers not only want to be reassured that the products they buy are ethically and sustainably produced; they also want to choose brands that are good for them and good for others.</p>
<p xmlns="http://www.w3.org/1999/xhtml">However, they also told us they feel powerless to make a difference: the scale of the challenge is too great and their individual actions are too small.</p>
<p xmlns="http://www.w3.org/1999/xhtml">We believe we are well placed to help people understand how their brand choices and small actions, when added to those of others, can make a big difference across the world.</p>
<p xmlns="http://www.w3.org/1999/xhtml">
<img xmlns:xlink="http://www.w3.org/1999/xlink" title="SDL brands, small every day actions and billions of consumers make a big difference" alt="SDL brands, small every day actions and billions of consumers make a big difference" xlink:href="tcm:18-1824" width="454" height="76" class="imgFloatRight" xlink:title="SDL brands, small every day actions and billions of consumers make a big difference"></img>
</p>
<p xmlns="http://www.w3.org/1999/xhtml"> </p>
<p xmlns="http://www.w3.org/1999/xhtml"> </p>
<p xmlns="http://www.w3.org/1999/xhtml"> </p>
<p xmlns="http://www.w3.org/1999/xhtml">For example, SDL's detergent brands are used in 125 billion washes a year. That is the equivalent of 14 million washes every hour. Every time a SDL consumer does the laundry at a lower temperature or with a full load, the reductions in energy, CO2 and water are cumulatively very large.</p>
<p xmlns="http://www.w3.org/1999/xhtml">With consumer use accounting for nearly 70% of our greenhouse gas footprint, inspiring our consumers to change their behaviour will be key to achieving our mission of creating a better future every day. SDL’s Five Levers for Change methodology is helping us create effective behaviour change campaigns.</p>
<h2 xmlns="http://www.w3.org/1999/xhtml">Embedding sustainability into our business</h2>
<p xmlns="http://www.w3.org/1999/xhtml">More than 100 years ago, our founders not only created some of the world's first consumer brands, they also built a business with strong values. We have continued to update our vision as the world has changed.</p>
<p xmlns="http://www.w3.org/1999/xhtml">Only by embedding sustainability into our business will we succeed in reaching our targets. We are doing this in a number of ways.</p>
<ul xmlns="http://www.w3.org/1999/xhtml">
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<p>Our business strategy now includes sustainability at its heart</p>
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<p>We are measuring progress. Our brand and functional teams all have sustainability scorecards. These are reviewed quarterly by the SDL Leadership Executive.</p>
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<p>We are starting to link progress to reward. An increasing number of managers, from the CEO downward, have sustainability goals as part of their compensation.</p>
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<p>We are building sustainability into innovation. We have a set of tools to evaluate the environmental impacts of new products.</p>
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<p>We have appointed 65 sustainability champions to cover every key function, category and country across the business.</p>
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<p>We are building expertise in behaviour change. SDL’s Five Levers for Change methodology helps our brand and R&amp;D teams design effective programmes.</p>
</li>
</ul>
<h2 xmlns="http://www.w3.org/1999/xhtml">Our brand imprint process</h2>
<p xmlns="http://www.w3.org/1999/xhtml">In the 1990s we started to integrate sustainability factors into our sourcing and manufacturing processes. Then, in 2005, we began to embed this agenda into our product brands using a process called Brand Imprint. This provides our brand teams with a 360° scan of the social, economic and environmental impact that their brand has on the world. Since 2005, Brand Imprints have been completed across all our product categories and social and environmental considerations are now integrated into the innovation and development plans of our major brands.</p>
<h2 xmlns="http://www.w3.org/1999/xhtml">Assessing impacts across the value chain</h2>
<p xmlns="http://www.w3.org/1999/xhtml">Our commitment to reduced environmental impact extends right across our value chain – ie from the sourcing of raw materials through our own production and distribution to consumer use and eventual disposal of packaging.</p>
<p xmlns="http://www.w3.org/1999/xhtml">In 2008 we developed a set of metrics for our four priority environmental impact areas across the value chain:</p>
<ul xmlns="http://www.w3.org/1999/xhtml">
<li>
<p>greenhouse gas (GHG) emissions</p>
</li>
<li>
<p>water</p>
</li>
<li>
<p>waste</p>
</li>
<li>
<p>sustainable sourcing.</p>
</li>
</ul>
<p xmlns="http://www.w3.org/1999/xhtml">The first three of these metrics are designed to measure the impacts of our products when used by consumers, such as grams of greenhouse gas per single usage occasion. These metrics have formed the basis of the targets we have set in our Sustainable Living Plan.</p>
<h2 xmlns="http://www.w3.org/1999/xhtml">Adding sustainability to our innovation processes</h2>
<p xmlns="http://www.w3.org/1999/xhtml">All decisions about new projects and innovation now have a sustainability dimension. We have developed a set of proprietary tools to allow project teams and brand leaders to evaluate environmental impacts early in the development of new products and at every critical stage of the innovation process.</p>
<p xmlns="http://www.w3.org/1999/xhtml">We have committed a significant proportion of SDL’s R&amp;D budget to finding radical new technologies to address our sustainability targets. A dedicated team is responsible for identifying medium- and long-term solutions to our biggest environmental challenges.</p>
<h2 xmlns="http://www.w3.org/1999/xhtml">Working in partnership</h2>
<p xmlns="http://www.w3.org/1999/xhtml">We do not have all the answers to the challenges and dilemmas that our business faces today. Many sustainability issues can only be addressed through a collaborative, multi-stakeholder approach. If we are to fulfil our mission, we must work in partnership. Partners bring expertise on specific issues as well as the networks to deliver practical initiatives on the ground. We complement this with our own experience, marketing expertise and commercial strength.</p>
<p xmlns="http://www.w3.org/1999/xhtml">Some of our partnerships are formal, long-standing relationships with well-known global organisations; others are informal alliances with others in industry, NGOs, governments and UN agencies.
<br></br>
In early 2012 we launched the SDL Foundation to help meet our ambitious goal of helping more than one billion people improve their health and well-being.</p>
<p xmlns="http://www.w3.org/1999/xhtml">The Foundation focuses on improving quality of life through the provision of hygiene, sanitation, access to clean drinking water, basic nutrition and enhancing self-esteem. It is partnering with five leading global organisations – Oxfam, PSI, Save the Children, UNICEF, and the World Food Programme. By working together, we will be able to expand the delivery of life-saving solutions to drive systemic and scalable social change.</p>
<p xmlns="http://www.w3.org/1999/xhtml">Additionally, these five global partners will serve as our primary beneficiaries in times of disaster and emergency relief so that we are able to provide critical resources expeditiously when there is the greatest need and on longer term projects to help rebuild communities.</p>
<h2 xmlns="http://www.w3.org/1999/xhtml">The United Nations Global Compact</h2>
<p xmlns="http://www.w3.org/1999/xhtml">As a signatory of the United Nations Global Compact, SDL is committed to living out the Compact's ten principles on human rights, labour, environment and anti-corruption in our everyday business operations.
<br></br>
Our own Code of Business Principles has long reflected the Compact's goals. In our annual Communication on Progress for the Global Compact we provide an update on how we are living out the Compact’s principles across our business. View our Global Compact index.</p>
<p xmlns="http://www.w3.org/1999/xhtml">In 2012 SDL CEO JJ was appointed as a member of the United Nations Global Compact Board, which provides strategic and policy advice to the Global Compact. His appointment will last for three years.</p>
</body>
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