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Beth Springer, Clorox,Joe Laur, at Opportunity Green 2009
 

Beth Springer, Clorox,Joe Laur, at Opportunity Green 2009

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Beth Springer, Clorox, at Opportunity Green 2009

Beth Springer, Clorox, at Opportunity Green 2009

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    Beth Springer, Clorox,Joe Laur, at Opportunity Green 2009 Beth Springer, Clorox,Joe Laur, at Opportunity Green 2009 Presentation Transcript

    • Going Green Learning as We Go Opportunity Green Los Angeles, CA November 8, 2009 Beth Springer Executive Vice President The Clorox Company
    • Clorox Then: 1913 Founded as an industrial bleach company 1928 Went public 1957 Acquired by Procter & Gamble 1969 Independent again, still making only liquid bleach Portfolio expanded through innovation, brand building and acquisition November 8, 2009 Clorox Presentation at Opportunity Green Conference 2
    • Clorox Now: Sales of $5.3 Billion 8300 employees 80% of business in USA More than two dozen plants in the USA Manufacture products in 25 countries SIX R&D facilities Traded on NYSE November 8, 2009 Clorox Presentation at Opportunity Green Conference 3
    • Leading Consumer Brands November 8, 2009 Clorox Presentation at Opportunity Green Conference 4
    • We’ve made a lot of sustainability progress in the last several years, but are still fairly early in our journey Green is a driving force Extreme behind the company Green Clorox goal Shaded Leverage green for growth Green Clorox’s Sustainability Focus is to reduce costs Journey Lean and increase efficiencies Green Clorox 2007 Defensive Key motivation is risk avoidance Green * From Fall 2004 Sloan Business Review November 8, 2009 Clorox Presentation at Opportunity Green Conference 5
    • The journey is long, but we have made some good progress in the last five years Environmental sustainability is: • Embedded in the company’s strategy and performance scorecard • Articulated via a corporate-wide Eco Strategy and managed by a dedicated Eco office • Driven into the goals and plans of our individual business units Accomplishments to date include: • Setting a public GHG goal as a member of Climate Leaders • Making progress in reducing operational and product footprints • Building two natural, plant-based brands With continued opportunity to: • Further embed eco criteria into our business processes and management incentive systems • Set additional public goals and issue a formal Sustainability Report • Further reduce our operational and product eco footprints November 8, 2009 Clorox Presentation at Opportunity Green Conference 6
    • Going Green: Learning as We Go Our initial focus was on: Reducing our operational footprint November 8, 2009 Clorox Presentation at Opportunity Green Conference 7
    • Reducing our operational footprint Manufacturing opportunities Lighting Retrofits Water Recycling Waste Reduction November 8, 2009 Clorox Presentation at Opportunity Green Conference 8
    • Reducing our operational footprint Distribution opportunities Truck to Rail Network Improvements Using other more efficient carriers November 8, 2009 Clorox Presentation at Opportunity Green Conference 9
    • Reducing our operational footprint Workplace opportunities Reduced Business Travel Reduced Paper Use By 20% Created an Eco Network by 30% Converted to more fuel efficient fleet Making facilities more efficient November 8, 2009 Clorox Presentation at Opportunity Green Conference 10
    • Going Green: Learning as We Go Our initial focus was on: But we also learned that: Reducing our operational footprint We needed to make our product portfolio more sustainable November 8, 2009 Clorox Presentation at Opportunity Green Conference 11
    • Making the product portfolio more sustainable Our largest footprint is in the over one billion products we sell into the marketplace each year 40 Plants TO OVER 1 Billion Products! November 8, 2009 Clorox Presentation at Opportunity Green Conference 12
    • Making the product portfolio more sustainable About 80% of that product footprint is actually outside the walls of Clorox, but still needs to be managed 60% % Total ECO Impact* 40% 45% 20% 20% 15% 10% 10% 0% Raw Materials Manufacture Distribution (of Consumer Use End of Life (Sourcing & (Product formulation finished product to Production) and packaging) customer) * Illustrative purposes November 8, 2009 Clorox Presentation at Opportunity Green Conference 13
    • Making the product portfolio more sustainable Additionally, the eco impact of each of our businesses is different, and needs to be managed separately ECO impact Relative % of Sales November 8, 2009 Clorox Presentation at Opportunity Green Conference 14
    • Making the product portfolio more sustainable To better manage the individual businesses, we have created and are implementing a new Eco Assessment process Clorox’s ECO Assessment Process Environmental Sustainability Grounding Product Life Cycle Filter Raw Matls. Manufacture Distribution Consumer Use End of Life Stakeholder Consumer NGO’s Customer Competition Government Filter Investors Employees Media Community Groups Business Footprint Impact Risk Mitigation Growth Filter Reduction Environmental Sustainability Priorities and Recommendations November 8, 2009 Clorox Presentation at Opportunity Green Conference 15
    • Going Green: Learning as We Go Our initial focus was on: But we also learned that: Reducing our operational footprint We needed to make our product portfolio more sustainable Making existing products more sustainable November 8, 2009 Clorox Presentation at Opportunity Green Conference 16
    • Greening up existing product lines Cleaning products, trash bags and charcoal are a few recent examples Kingsford Natural Concentrated Briquettes Clorox 2 Glad Compostable November 8, 2009 Clorox Presentation at Opportunity Green Conference 17
    • Greening up existing product lines We’ve improved a third of our product portfolio in the last five years, and our goal is to improve another 25% in the next four years Percent of the Product Portfolio with Eco Improvements 60% 40% 20% 0% 2005-2009 2010-2013 Goal November 8, 2009 Clorox Presentation at Opportunity Green Conference 18
    • Going Green: Learning as We Go Our initial focus was on: But we also learned that: Reducing our company’s operational footprint We needed to make our product portfolio more sustainable Making existing products more sustainable We needed to correct misinformation on some products November 8, 2009 Clorox Presentation at Opportunity Green Conference 19
    • Correcting misinformation Clorox bleach is one example where some perceptions are just not true 1. Salt The truth During waste treatment, remaining bleach is degraded to salt. about bleach… • There is no free chlorine in Clorox Liquid Bleach 4. Municipal Treatment- Salt-to-Salt 2. Bleach • Sodium Hypochlorite bleach Septic Tank Manufacture Bleach Cycle is the most effective and affordable disinfectant available today During product use, 95-98% of household bleach breaks down into salt and water. • No other manmade product hassaved more lives than sodium hypochlorite bleach. 3. Product Use November 8, 2009 Clorox Presentation at Opportunity Green Conference 20
    • Established a product ingredient communication program We are also reducing misperceptions by being transparent on ingredients November 8, 2009 Clorox Presentation at Opportunity Green Conference 21
    • Going Green: Learning as We Go Our initial focus was on: But we also learned that: Reducing our company’s operational footprint We needed to make our product portfolio more sustainable Making existing products more sustainable We needed to correct misinformation on some products There is an opportunity to build new brands made with plant-based ingredients November 8, 2009 Clorox Presentation at Opportunity Green Conference 22
    • Opportunity to build new brands with plant-based ingredients Burt’s Bees and Green Works are new lines of business Acquired December 2007 Launched January 2008 November 8, 2009 Clorox Presentation at Opportunity Green Conference 23
    • Going Green: Learning as We Go Our initial focus was on: But we also learned that: Reducing our company’s operational footprint We needed to make our product portfolio more sustainable Making existing products more sustainable We needed to correct misinformation on some products There is an opportunity to build new brands made with plant-based ingredients Products have to meet a genuine consumer need and be priced in a way that creates value for manufacturers, retailers and consumers November 8, 2009 Clorox Presentation at Opportunity Green Conference 24
    • Opportunity to build new brands with plant-based ingredients Our bet on natural products is based on an insight that consumers are motivated by concerns about My environment versus The environment Consumer Definition of “My” Environment vs. “The” Environment The Environment My Environment Work Family/ Home World Parks Car Community Body Yard Local Natural Environment Within My Control — Outside of My Control — “Immediate” “Long-Term” In me, On me, Around me November 8, 2009 Clorox Presentation at Opportunity Green Conference 25
    • Products must met genuine needs and be priced right Kingsford Surefire reduced our environmental footprint while also offering the consumer a better product at the same price Upgraded raw materials and optimized formula Improved process and quality New briquette shape for more grilling power November 8, 2009 Clorox Presentation at Opportunity Green Conference 26
    • Products must met genuine needs and be priced right The initial line of Green Works products provided a more natural alterative to conventional cleaners at only a modest price premium +11% +25% +6% +14% +4% +18% November 8, 2009 Clorox Presentation at Opportunity Green Conference 27
    • Products must met genuine needs and be priced right Despite the clear eco benefits of concentrating household cleaners, the usage experience barriers remain too high to change behavior Concentrates reduce Product & Packaging Costs product & package costs And can result in Distribution Costs significant distribution savings Retail Price Which result in a lower price per use Per Use for the consumer Consumer Product Value Usage But to date, the price and environmental benefits are not enough Performance Experience to overcome the diluting hassles November 8, 2009 Clorox Presentation at Opportunity Green Conference 28
    • Going Green: Learning as We Go Our initial focus was on: But we also learned that: Reducing our company’s operational footprint We needed to make our product portfolio more sustainable Making existing products more sustainable We needed to correct misinformation on some products There is an opportunity to build new brands made with plant-based ingredients Products have to meet a genuine consumer need and be priced in a way that creates value for manufacturers, retailers and consumers Being guided by strategy and steady principles November 8, 2009 Clorox Presentation at Opportunity Green Conference 29
    • Steady Principle Our work is always guided by our values and our strategies Clorox Core Values • Stretch for Results • Do the Right Thing • Take Personal Ownership Clorox Mission • Work Together to Win Making Everyday Life Better, Everyday Clorox Corporate Strategy Maximize Economic Profit across categories, customers Clorox Eco Strategy and countries. Make Environmental Sustainability core to how we do business to: • Enable Clorox’s EP growth • Enhance corporate reputation • Build employee pride November 8, 2009 Clorox Presentation at Opportunity Green Conference 30
    • Going Green: Learning as We Go Our initial focus was on: But we also learned that: Reducing our company’s operational footprint We needed to make our product portfolio more sustainable Making existing products more sustainable We needed to correct misinformation on some products There is an opportunity to build new brands made with plant-based ingredients Products have to meet a genuine consumer need and be priced in a way that creates value for manufacturers, retailers and consumers Being guided by strategy and steady principles We have to learn and adapt as we go November 8, 2009 Clorox Presentation at Opportunity Green Conference 31
    • Learning and Adapting We are continually learning from people and groups outside company walls NGOs Universities Media Industry Associations Blogs Consumer Comments Peer Companies Advisory Boards Retail Customers Suppliers November 8, 2009 Clorox Presentation at Opportunity Green Conference 32
    • Work on Green Works and Brita are two clear examples where outside parties have helped us improve Green Work and Sierra Club joined Brita – better taste, and helps reduce together to help bring natural bottled water waste cleaning to the mainstream But we needed to find a way to Vetting process led to a new level of recycle our used filters engagement Opened our doors to Sierra Club on Current waste treatment facilities in product and company information the U.S. not equipped to recycle used • Product ingredients filters • Bleach • Environmental and workplace safety record After much research, Brita partnered with Preserve, maker of 100 percent Dialogue between Sierra Club and Clorox reinforced importance and recycled household consumer goods benefits of transparency November 8, 2009 Clorox Presentation at Opportunity Green Conference 33
    • Lots yet to learn. Among the questions we continue to wrestle with . . . Have not always been able to justify major Still working to establish an eco mindset capital investments for big eco gains throughout Clorox so that Eco Office is not the main generator of eco ideas Still trying to crack the consumer code for major footprint reduction of our cleaners Still exploring heat recapture technology for electricity generation at our Kingsford plants November 8, 2009 Clorox Presentation at Opportunity Green Conference 34
    • Going Green: Learning as We Go Our initial focus was on: But we also learned that: Reducing our company’s operational footprint We needed to make our product portfolio more sustainable Making existing products more sustainable We needed to correct misinformation on some products There is an opportunity to build new brands made with plant-based ingredients Products have to meet a genuine consumer need and be priced in a way that creates value for manufacturers, retailers and consumers Being guided by steady principles We have to learn and adapt as we go November 8, 2009 Clorox Presentation at Opportunity Green Conference 35