INTEGRAL CLIMATE PROTECTION AND THE WELEDA WAY - SAT 22.05.2021 / 29.05.2021 WELEDA CORPORATE SUSTAINABILITY, DR. STEFAN SIEMER - Natural ...
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INTEGRAL CLIMATE PROTECTION AND THE WELEDA WAY SAT 22.05.2021 / 29.05.2021 WELEDA CORPORATE SUSTAINABILITY, DR. STEFAN SIEMER
OUR FOUNDING IMPULSE (~1921) Dr Ita Wegman Doctor and Dr Rudolf Steiner Entrepreneur Dr Oskar Schmiedel Founder of Anthroposophy Chemist, pharmaceutical and cosmetics pioneer Medicine „Different Business“ https://dasgoetheanum.com/100-jahre-anthroposophische-medizin-2/ https://socialnew.goetheanum.org/de/home-de/ Caring Activism 2
WELEDA IN A NUTSHELL Founded in 1921 Producer of certified natural cosmetics Manufacturer of medicines for anthroposophical treatments > 2,500 employees worldwide > EUR 420 million sales (75% natural cosmetics, 25% medicines) 24 companies in 20 countries on 5 continents over 50 projects and partnerships with suppliers worldwide 1,000 natural ingredients and around 300 plant species 3
RANKING RESULTS (GERMANY) WELEDA IS HIGHLY TRUSTED BY CONSUMERS IN TERMS OF SUSTAINABILITY Number 1 trusted brand for sustainability in the care and cosmetics sector Source: Online survey March 2019 – May 2019, based on: Total n = Source: Stern survey, 3 February – 19 March 2020, 32,700 consumers, 790 2,300, cosmetics 2019, Facit Research, 24 June 2019 (SIS = brands, Link sustainability image score), Link 5
STAKEHOLDER FEEDBACK Swiss Ethics Award 2016 Sustainable Beauty Awards 2013, 2016, 2018 Green Brands 2020/2021 UN-Decade Biodiversity 2017 CSR-Award for Ethical Supply Chains 2017 Responsible Business German Sustainability BSB Innovation Award 2020 Award 2017 Award «Most Sustainable Brand» 2016 7
COLLATERAL DAMAGES OF GROWTH: LEAVING THE RESILIENT COMFORT ZONES Source: Stockholm Resilience Centre 10
WORLD: CLUSTERFUCK FOR OUR KIDS Source: WWF Living Planet Report 2018 11
WORLD ECONOMY FORUM: RANKING OF RISKS 2020: ALL 5 MOST PROBABLE RISKS ARE ECOLOGICAL 12
WHAT THE WORLD NEEDS PARADIGM SHIFT: FROM "LESS BAD" TO "MORE GOOD” From: Cradle2Cradle / Prof. Braungart 13
CLIMATE – WISH …. Source: Global Carbon Project 14
… AND REALITY ASSUMPTION Source: Statista 15
WHAT IS MORE PROBABLE? Source: Statista / Global Carbon Project 16
FRAME: WELEDA AND GLOBAL EVOLUTION AT A CRUCIAL POINT 1921 2021 Integration Context-Orientation Pioneering Differentiation Context-Orientation* also means: Being and acting Response-Able to the external human, spiritual, cultural, social and ecological challenges of the past, the present and the future. From I (Weleda) to We (World) *»Symptoms» of growing Context-Relevance are as well: Strongly growing Demands from Civil Society, Consumers, Customers, Media, NGOs, Legal, Regulation etc 17 17
WELEDA IS AND ACTS RESPONSE-ABLE INTERNAL SOLUTIONS OF CONTEXT-ORIENTATION – FOUR EXAMPLES Ethical Sourcing System Corporate Strategy (2021) o Fulfilling the UEBT Ethical o Target: «We act as a company Sourcing Standard (2011) Impact Positive» o and the UEBT Supply Chain o Target: «We are the Pioneer Management System (2018) and Trendsetter of ecological for all our ~650 raw materials pharmacy and natural cosmetics” and ~1,200 supply chains Becoming a B-Corp in ~2021 New Collaborative Impact Models including a «Mission Lock» (2021) in the AoA (2020): o LIVING SOIL JOURNEY, "The Company shall have a including CAMP (2022) and material positive impact FarmFoodClimateChallenge (2021) on society and the o MUNDI – Educational Initiative environment, taken as a whole, for Sustainable Development through its business and (2021) operations.“ 18
2022: TWO NEW IMPACT AREAS OF BEING AND ACTING RESPONSE-ABLE 1% PROGRAM WITH CLIMATE PROTECTION PROGRAM 19
1% OF ANNUAL TURNOVER ON DOING GOOD FOR THE PLANET (THE MORE TURNOVER, THE BETTER…) 20
WELEDA CLIMATE FOOTPRINT AND PROTECTION PROGRAM: SAVING ~350.000 TCO2E/A UNTIL 2025 Impact Reduction of Scope 3 climate footprint by 20% (climate-friendly finances, raising awareness and activating customers and employees) ~250.000 tCO2e/a until 2025 (from 2019) Climate neutral from 2022 (efficiency, regenerative energy, insetting, offsetting) ~100.000 tCO2e/a Climate neutral from 2021 (efficiency, regenerative energy, insetting, offsetting) ~10.000 tCO2e/a 21
ETHICAL BUSINESS PRACTICE 22
ETHICAL BUSINESS PRACTICE AT WELEDA FROM EVERY ASPECT 23
ETHICAL BUSINESS PRACTICE AT WELEDA EXISTING COMMITMENTS • High quality promise (certified NOC/NaTrue, ‚free from‘) • Average organic share of • Vertical integration (own gardens, > 80% of natural raw tincture production, perfume materials • Recycling rate of waste ~ 98% development, quality) • Own gardens • Production of NOC with 100% green • Engagement palm oil power • Environmental management • Partnerships & systems at key sites projects with growers (50 worldwide) • Value added statement • UEBT-management • Economical resilience system for entire supply chains of natural resources • Highest possible • Promotion of the Weleda transparency Culture and personal & professional development • Commitment to anthroposophical medicine • Fostering of work-life balance, health and • Inspiration of people for a good life diversity (gardens, event center GD, publications) • Engagement of and for employees 24
ETHICAL BUSINESS PRACTICE AT WELEDA NEW TARGETS UP TO 2022 More sustainable NOC primary packaging: • 65% recycled content (post-consumer recycling, including closure system) • 30% of organic • Improvement in • At least 75% recyclability raw materials of sustainability achieved biodynamic quality / (CIP: energy, water, Demeter waste) • International • Increased proportion of “healthy soil” renewable energies campaign • True cost • Weleda is transparency becoming a B Corp for the major worldwide plant raw materials (true cost accounting) • Global leadership programme • 777 Weleda “goodprints” that • Worldwide continuing inspire people to adopt development of the Weleda sustainable lifestyles culture and identity 25
OUR UEBT CERTIFICATION (ETHICAL SOURCING SYSTEM) WHAT DOES THE CERTIFICATION STAND FOR? • Since 2011, Weleda has met the UEBT ethical sourcing standard, including maximum transparency, high ecological, social and socio- economic standards (including Fairtrade), biodiversity management • Since 2018, Weleda has also met the requirements of the UEBT “Sourcing with Respect” supply chain management system • Weleda applies the standard and the management system to all its approximately 650 raw materials and approximately 1,200 supply chains 26
ETHICAL BUSINESS PRACTICE IN THE SUPPLY CHAIN BIODYN INITIATIVE OVER 80% OF OUR CERTIFIABLE RAW MATERIALS ARE PRODUCED ORGANICALLY. BY 2022, 30% OF THESE RAW MATERIALS WILL BE BIODYNAMIC (END OF 2020, APPROX. 22%). Big picture: Our long-term, aspirational objective is for 100% biodynamic raw materials A wide range of long-term projects and corporation ventures worldwide (approx. 50 of our own projects with partners) Current example: March 2019, start of a PPPP (public-private partnership project) with DEG and our grower partner for lavender in Moldova: Production of biodynamic lavender and social initiatives (EUR 400,000 investment) 27
ETHICAL BUSINESS PRACTICE PALM OIL / LAND RESTORATION PRACTICAL ACTION WITH AWARENESS OF RESPONSIBILITY Awareness, knowledge, transparency, standards No palm oil is not a solution. Weleda is a committed FONAP member (as chair of the board) and consequently also of the RSPO Standards are high: only certified palm oil (>20% IP) Since 2019: Cooperation with the BOS foundation In January 2019 we started working with the BOS (Borneo Orangutan Survival) foundation, in a pilot land restoration / conservation project in East Kalimantan, Indonesia. First project phase: 20 months Weleda investment 2019: EUR 100,000 Objectives: Long-term protection of ecosystems with orangutans, socio-economic development of the region, involvement of the local population, protection of biodiversity and rainforests. Movie: https://youtu.be/v3ldNnakPZE 28
ETHICAL BUSINESS PRACTICE CORPORATE DIGITAL RESPONSIBILITY WELEDA CDR CODEX #NaturallyDigital – in an increasingly digitised world we take responsibility for health and beauty in harmony with humans and nature Corporate Digital Responsibility (CDR) ensures value orientation in our digitalization. CDR is a self-commitment that goes beyond the statutory regulations, in which a conscious position with so-called dilemmas is taken. 15 principles serve as a compass for us: Good handling of data Human-centered Positive impact on the and algorithms digital work environment + society 1. protect and respect privacy 6. create fair and healthy working 12.promote a positive impact on conditions humanity 2. Use data transparent 7. involve employees 13.avoid negative effects on nature 3. ensure high data security and 8. promote digital competence quality among employees 14.support sustainability goals 9. leave decision-making with 4. make algorithms transparent humans 15.make digital innovation responsible 5. use data economical 10. design CDR Leadership in an exemplary way 11. ensure equal opportunities Our principles are bindingly set out in our CDR codex and are known throughout the company. Projects are examined and aligned with respect to the principles. The CDR Council makes binding recommendations for action and is the contact person for all digital-ethical questions (CDR@weleda.de). With CDR, Weleda fulfils her responsibilities and inspires on the outside and in the inside. 29
ETHICAL BUSINESS PRACTICE B-CORP 2021 WELEDA WILL BECOME A B-CORP (PROBABILITY >90%) 30
ETHICAL BUSINESS PRACTICE B-CORP LEGAL REQUIREMENT: “MISSION LOCK” (INCLUDED IN WELEDA AOA 2020) The Company shall have a material positive impact on society and the environment, taken as a whole, through its business and operations. 31
ETHICAL BUSINESS PRACTICE TRANSPARENT AND INTEGRATIVE REPORTING OUTLOOK 2025: INTEGRATE CONTEXTS (E.G. SDG, PLANETARY BOUNDARIES) AND MULTIPLE TYPES OF CAPITAL (E.G. FINANCIAL, NATURAL, HUMAN, SOCIAL) Blueprint e.g.: Cabot Creamery 32
ETHICAL BUSINESS PRACTICE PACKAGING ACCORDING TO THE REQUIREMENTS OF THE PRODUCT, WE USE A VARIETY OF PACKAGING SOLUTIONS: GLASS OR PLASTIC ALUMINIUM RECYCLED GLASS Advantages Advantages + easy to handle + very easily recycled Advantages + relatively light + very good product protection + good product protection + numerous packaging innovations + proven material + high-quality feel + good environmental image + very easy to recycle Disadvantages + up to 85% recycled glass content - not all plastic packaging can be Disadvantages can be used for our products without recycled - mining of raw material bauxite loss of quality - only limited amounts of good-quality associated with severe environmental recycled plastic available on the impact Disadvantages market - production of alu requires high energy - weight - only a few countries have a use - risk of breakage and splintering an effective recycling system - tubes can crack easily when creased - only limited amounts of good-quality - where waste disposal is unregulated recycled glass available on the market there is a risk of the plastic ending up in the environment (the sea) 33
ETHICAL BUSINESS PRACTICE PACKAGING NATURAL COSMETICS PACKAGING MATERIAL Packaging material type Today End of 2022: 29% recycled materials 65% recycled materials* Primary packaging material 100% sustainable paper (100% FSC-certified and/or recycled materials) Secondary packaging materials Increased proportion of cardboard and 100% sustainable paper environmentally-friendly packaging and (100% FSC-certified and/or recycled filling materials materials) (Reduced use of shrink- and stretch-wrap film, etc.) Tertiary packaging materials *in terms of the weight of all packaging produced, including closure systems 34
PLASTIC INITIATIVE 2020 BABY BOTTLES CHANGE FROM PET TO 97% rPET ON SALE FROM JULY 2020 (IN NEW PACKAGING DESIGN) o Calendula Baby Oil (Fragrance-Free) o Calendula Cleansing Milk o Calendula Bath Milk o Calendula Cream Bath Integration of the logo on o White Mallow Care Lotion the rear of the bottle, implemented at the same time as the new packaging design An annual emissions reduction of 153 tonnes of CO2 = a 1,175,000 km car journey = 29 times round the world! * 97% recycled plastic 3% cream-white dye 35
PRIMARY PACKAGING LONG-TERM PACKAGING VISION Weleda's long-term, aspirational packaging vision: • 0% Waste • 0% Harm • 100% Consumer Relevance 36
MEANINGFUL AND GOOD WORK 37
COLLEGIAL LEADERSHIP AND TRANSFORMATION Werde 38
BACK TO OUR TOPIC: CLIMATE PROTECTIONS REQUIRES CLIMATE CONSCIOUSNESS AND INNER WORK, TOO I IN OUT WE 39
ASSOCIATIVE COLLABORATION: TRANSCENDING COMPANY BOUNDARIES FROM EGO TO ECO Associative course Associative leadership training • In 2019, together with GLS Bank, we • In September 2019, the first joint launched the experiment Associative management training course took Studies in Business Administration. place – a new format that we developed • We expect this to lead to a new quality in together from four companies. training – formed in different cultures, with • A number of managers from each of the broadened horizons and unique companies involved took part. opportunities for personal and professional • The response was so encouraging that we development. are planning the second module together. • In September 2019, the first associative student started. • In 2020 we plan to allocate further associative study places. 40
PROGRAMME: "PROMOTING RESILIENCE” – MODULE: BIOGRAPHY DAYS FOR EMPLOYEES WHY HOW WHAT • Burnout prophylaxis • Specially developed • Individual, salutogenetic ("sharpening the saw") Weleda format based on development workshop • Gain biographical our idea of the human • Determining the current sovereignty being situation with the aid of • Promoting awareness of • Duration: 1,5 days suitable instruments personal responsibility for • Discover the connection and initiative between work and private • Encourage own life professional and personal • Discovering the longing development - and need for development contribution to the • Developing development potential development of scenarios all employees • Decide on concrete next steps 41
NEW IMPACT MODELS 42
INSPIRATION AND AWARENESS RAISING THROUGH COMMUNICATION 43
Werde: The Art Of Green Living 44
• Independent magazine, founded by Weleda • No PR-Stories • Financed by its readers • Inspiration for sustainable lifestyle • Featuring ecological leaders • Supporting initiatives (BioBoden, proBiene) 45
WELEDA EXPERIENCE CENTRE AND EUROPE'S LARGEST BIODYNAMIC MEDICINAL PLANT GARDEN Annually around (without a pandemic ;-): • 150 internal conferences and events • 4 major events and markets • 750 guided tours • 80 workshops, adventure days, summer holiday events 46
LIVING SOIL JOURNEY An Associated OpenSocialInnovation Program with ProjectTogether for living soils, thriving biodiversity, regenerative agriculture and food transition. 47
RENEWAL OF OUR FOUNDING IMPULSE: WHAT WILL HUMANITY AND WORLD NEED IN 100 YEARS? 48
THANKS VERY MUCH FOR LISTENING
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