Mr. Rorsted, can you give us a concrete example of how your company combines social and ecological responsibility with business success?

Our ambition is to combine product performance with responsibility toward people and the environment and so to set a new quality standard. To achieve this, Henkel has defined five focal areas: energy and climate, water and wastewater, materials and waste, health and safety, and social progress. In addition to increasing our margin, each new product must also contribute to sustainable development in at least one of these focal areas. To give you an example, we have developed our laundry detergents still further so that they deliver very good performance even at low temperatures and low dosages. This enables consumers to save energy while still obtaining the same cleaning results. More than two-thirds of the ingredients of the product formulations of our soaps, shampoos and shower gels are now based on renewable raw materials. In our industrial adhesives business, we offer system solutions which help to cut the costs for energy, water and waste disposal in many processes. And we have developed new technologies for corrosion protection which operate without phosphates and avoid heavy-metal waste.

Your company has not only won the German Sustainability Award, but has recently been included in the Dow Jones Sustainability World Index. What does this signify?

The Dow Jones Sustainability World Index lists companies which operate according to the principles of sustainable development. For the past ten years, SAM Indexes GmbH has been conducting an annual review of companies based on economic, ecological and social criteria. Henkel was recently named sustainability leader in the Nondurable Household Products sector once again. Just 10 percent of the 2,500 largest companies in the world find their way into the DJSI.

All these successes apart, where do you see the greatest need for action regarding sustainable development – in your own company and perhaps also throughout the sector?

We must promote innovative, sustainable consumption. Population figures are growing worldwide, and the average standard of living and the related consumption are increasing. As a result, more and more resources are being consumed and emissions are rising. So we have to develop even better products and solutions while at the same time making it easier for consumers around the world to make responsible purchasing decisions and to use the products in a sustainable way. Generally, the ecological footprint of many consumer goods depends to a large extent on efficient use of the products by consumers. Laundry detergents are a good example. Saving energy by washing laundry at lower temperatures can make an important contribution to climate protection. However, we must communicate these offerings even more clearly to consumers. “Translating” the sustainable benefits into credible and easily understood communication concepts helps to involve consumers more closely in addressing the challenges that sustainable development poses to society as a whole.

Does this principle of sustainability pay for your employees as well? And if so, how?

Yes, absolutely. As a family-owned company, Henkel focuses on long-term, profitable growth. To be able to achieve this we need good employees, and we constantly invest in their training and continuing education. One of the reasons we do this is that we prefer to fill managerial positions from our own ranks. In Germany alone, we invested a total of 10 million euros in some 19,000 training activities for our employees last year.

How well is sustainability covered in your occupational training for young people, so that your employees internalize this goal at an early stage?

We try to anchor the sustainability ethic in the minds of our trainees from the very start. When they begin their training, they all receive an introduction to sustainable development. Then, they are familiarized with the practical aspects of the topic during their day-to-day work in the company. Chemistry lab assistants learn how to handle chemicals responsibly. Commercial trainees working in the purchasing departments get to know what we expect from our suppliers regarding sustainability. These are just two examples of many. In addition, we hold workshops dealing with sustainable business practices. An especially important aspect is the sustainability of our training methods themselves. Henkel offers very comprehensive training that goes well beyond the requirements of the official training syllabuses. For example, we focus intensively on soft skills such as the ability to work in a team, flexibility and creativity. Henkel also provides regular opportunities for trainees to broaden their horizons, for example by organizing group visits to museums or to the theater.

In your opinion, how have attitudes to sustainability changed in German companies as a result of the economic crisis?

Those who still consider that CSR and sustainability consist of donations, sponsoring, and projects that have little to do with their own business activities, may have reduced their involvement in the course of the crisis. But others – like Henkel – who see sustainability as a responsibility spanning the entire value chain, are now gaining economic advantages through this. In our case, efficiency increases over the past ten years have brought us savings of some 200 million euros through reduced energy demand alone. For Henkel, sustainability is a long-term success factor and innovation driver. The economic crisis has done nothing to change this view.

And how do you interpret this in concrete terms at Henkel? Did you define sustainability differently in 2009 from the way you did in 2008?

No. We take a very long-term perspective on sustainable development, which has always been a part of our corporate philosophy and actions. The current difficult economic situation will not change that. Moreover, our aim to combine product performance with responsibility toward people and the environment acts as a spur to innovation. This helps in times of crisis, especially where we can offer customers and consumers clear added value.

As you see it, what can governments do to set the stage for achieving sustainable development – in Germany and throughout the world? Can you give us any examples that may already be having an influence on your company?

The important thing is that governments should not only send out the right messages, but also agree on concrete targets, for example regarding climate protection. We need a clear global commitment and terms of reference so that we can all identify which contributions we will be expected to make. The term “all” applies to governments, business enterprises and consumers alike. A good example is the challenge to make our consumption more sustainable. The focus is not necessarily on the development of green products, but rather on offering and using more intelligent solutions. If millions of households were to save energy by washing their laundry at lower temperatures, this would make an important contribution to climate protection. Obviously, it takes high-performing laundry detergents and appropriately designed washing machines to make this possible. In order to pursue this approach across a broad front, we need to develop a common understanding of the priorities: which product categories should we focus on first, and which roles the different actors should play. Because we will only be able to create the conditions for and finance the necessary ecological and social progress through intelligent interaction between all social actors and instruments.