In 2016, you took over Procter & Gamble’s sustainability portfolio, effectively leading the company’s green agenda. Could you tell us about the significance of that year and how you came to focus on sustainability?
In 2016, I took a substantial leap in my mission to merge sustainability with our business model at P&G. My journey began back in the early 2000s while working in the fabric care business in Europe. We were trying to revitalize the Ariel brand which was losing relevance. We decided to market the brand emphasizing its ability to effectively clean clothes at low temperatures, saving consumers money on their electricity bills. This was well received, and we applied it across several markets.
After being profoundly affected by Al Gore’s 2005 documentary, “An Inconvenient Truth,” I began to see a deeper significance to our marketing approach. Upon learning that 80% of the carbon footprint associated with our detergent products was linked to the washing machine’s temperature during use, I realized that promoting cold water washes could be a pivotal sustainability initiative. This personal epiphany connected my everyday role at P&G with a grander vision of combating global warming. It was a bridge between the product we were selling and the urgent environmental issues illustrated in Gore’s film. I saw the potential for our business strategies not just to foster growth but to be a force for good.
Could you elaborate on how you worked to integrate this newfound mission into the company’s broader strategy and how it has evolved?
Following a sustainability training session with the WWF in Lausanne, I was filled with a newfound determination to make sustainability central to my job. Despite initially not knowing how to go about it, I felt a deep intuition that I could significantly enhance the company's impact through a focus on sustainability beyond just the detergent sector. I sought a meeting with the CEO, where I pitched the creation of a role that would bridge the gap between business and science, enabling us to weave sustainability into the very fabric of our business strategies. He agreed, appointing me to the pioneering role of marketing director of sustainability in 2011.
I engaged in dialogues with various leaders in the company, sharing the Ariel story as a testament to the compatibility of business growth with sustainable practices. Through persistent efforts to understand different motivations and to educate about the potential of sustainability, I gradually structured a more concrete sustainability program. By 2016, I had built a small but senior team dedicated to fully integrating sustainability into how we build our brands and foster innovation. Looking back, we have successfully instilled sustainability as a business priority at P&G, recorded at high rates in employee surveys. Today, sustainability is not an afterthought but an integral part of our journey, proving that it is indeed possible to marry commercial growth with genuine care for the planet.
Can you identify which brands have been more challenging to transition and which have found an easier path?
It is not necessarily about what is "easier" but rather that some brands initiated this journey much earlier. Ariel and Fabric Care are notable examples, having begun this transformation significantly ahead of others. The focus for Ariel has been on promoting cold water washing through the Cold Water Program, which aims to reduce the average wash temperature by 5 degrees by 2025. Initially, the average temperature was 42 degrees in Europe and the goal was to have a substantial impact on the life cycle assessment (LCA) of the washing phase, which originally constituted 80% of the LCA, though it has been reduced to 60%. There have been many positive results already, with remarkable achievements in reducing temperatures and realizing other benefits such as enhancing clothes longevity and decreasing microfiber release.
Further innovations have facilitated washing in colder temperatures, something many consumers prefer for its benefits to clothing longevity and a reduction in energy consumption. It has been found that people refrain from cold washing either due to ingrained habits or doubts about cleaning efficacy. Our advertising strategy, therefore, aims to educate consumers on the benefits and efficiencies of cold washing, coupling this with innovative solutions that ensure cleanliness is not compromised. We have succeeded in reducing the temperature by two degrees in two years and hope to continue this positive trajectory, encouraging more consumers to opt for the colder cycles available on their washing machines, which can save up to 35% of the energy used in a wash cycle.
Could you delve deeper into P&G's strategy in ensuring products are not only sustainable but also maintain a high standard of quality and performance?
Our core strategy revolves around creating products that are irresistibly superior and more sustainable. To drive a large-scale change, we aspire to appeal to the masses by offering products that are both irresistible and sustainable, where the sustainability aspect is a bonus rather than the sole selling point. Being able to deliver sustainability with no trade-off requires significant innovation – like Cascade Platinum Plus which eliminates the need to pre-wash dishes before being placed in the dishwasher can save up to 100 gallons of water a week or Bounty and Charmin innovating on superior sheet strength and absorbency so consumers can use less and do more with each sheet.
Can you elaborate on P&G's Ambition 2030?
In understanding P&G's Ambition 2030, it is instrumental to visualize our strategy as a house, which symbolizes our presence in five billion homes globally. This house is sustained by four pillars representing our focus areas: climate, waste, water, and nature, topped with a roof that stands for our commitment to being superior in performance yet more sustainable.
Over time, we understood the necessity to treat water and nature as discreet focus areas, given that a substantial 70% of our products require water for use. Our approach involves targeted strategies, like aiming for net-zero carbon emissions by 2040 with intermediary goals set for 2030. Similarly, we are actively working towards enhancing the recyclability of our packaging, while fostering partnerships to uplift the recycling infrastructure globally.
Regarding water, our endgame is fostering a water-positive future, making groundbreaking strides by committing to restore more water than is consumed in our manufacturing sites in 18 priority basins globally and to restore more water than is consumed when people use P&G products in the metropolitan areas of Los Angeles and Mexico City, two major water-stressed areas. This venture not only encompasses the water consumed in production but extends to consumer usage in major regions, accounting for 50% of our water consumption.
Our innovative strategies, like the 50 Liter Home Coalition, focus on reducing water waste from daily activities, demonstrating our proactive stance in addressing the impending water crisis, which we believe should command more attention globally.
Nature, the latest addition to our pillars, sees us venturing into sustainable sourcing and aiming to protect substantial stretches of land globally. Collaborating with organizations like Conservation International and WWF, we are working to safeguard critical landscapes.
In light of recent news about P&G dropping its pledge not to purchase wood pulp from degraded forests, could you clarify why this decision was made?
Recent definitions of forest degradation have diverged. In light of these evolving definitions, to enable more effective communication, we simplified the language and streamlined three forest-related policies into one. However, our commitment to responsible forestry – and our actions – remain the same, our ongoing efforts to keep forests as forests while serving consumers with superior-performing products are unchanged.
P&G has always prioritized sourcing FSC-certified pulp, which is viewed as the apex standard in the industry. However, due to its limited supply, we chose not just to settle with what is available but actively work towards augmenting its supply. It entails collaborating closely with farmers and organizations like the WWF to drive this change, a venture that demands substantial effort and commitment.
Our strategy revolves around fostering responsible consumption while ensuring the protection and restoration of critical landscapes through our partnerships with various organizations. To provide an in-depth understanding and to avoid any misconceptions, we maintain transparent communications through our well-detailed website.
Going beyond our supply chain, P&G partners with leading environmental organizations to protect forests around the world, including World Wildlife Fund, Rainforest Alliance, Arbor Day Foundation, Forest Stewardship Council, and The Nature Conservancy.
Finally, how does P&G perceive the readiness of consumers to incur additional costs for greener products?
The willingness of consumers to pay a premium for sustainable products is very low. Despite surveys suggesting a high readiness, the practical scenario in stores reflects a stark contrast as the majority of consumers will not pay a premium for sustainability alone.
We operate in sectors where performance dictates purchase decisions; hence superiority is non-negotiable. This approach facilitates our premium pricing strategy, fostering innovation and integrating sustainability seamlessly into our growth model. Our objective remains to communicate the inherent value in superior performance, offering products that save energy, water, and waste, and contribute positively towards sustainability, while delivering on the primary reason why people buy our products.
