"Collaboration is key" – Interview with Sylvie Nicol (Henkel)

Thank you for having us.

It's a very good question to start with. What motivates me is the challenge and the opportunity to make a difference. I believe that you have to be really passionate for the topic to push it forward. And if there is one thing I have learned since I took responsibility for sustainability on the management board last year, it is that the issue is incredibly complex and that it is extremely important as well for Henkel and for the world. The complexity is challenging but I also see it as an opportunity because there are many, many levels that we can use to make a difference: in our own production, engaging our consumers, working with our suppliers and on end. And my approach is: let's join forces. Collaboration is key within the company first but also with our partners along the entire value chain. I think we can really make a difference if we work together because one thing is very clear: we don't have much time, the next few years will be decisive. That is why our motto is let's act now for tomorrow. And when you realize that you can make a difference, I have to say for me this is a great motivator.

Yeah, you know, I don't think it's really decisive where the topic is located from an organization standpoint in the company as long as it is a top management level and it is a high priority on the management board agenda, as long as we have a clear strategy which is driven from the top of the company. But I also think that with my different responsibilities at Henkel, I can build a good bridge because sustainability is not only an issue for a team of experts. You need them definitely and I'm glad we have a strong team at Henkel. Sustainability plays an increasingly important role for the entire company. It affects every single employee at Henkel, and when I say every single one, I really mean it. It really must be firmly encouraged in our thinking and planning everywhere. Everyone can and should contribute. This shows that sustainability also has a lot to do with culture and leadership as well as upskilling our people. And those are key topics for me in my role as head of HR. Therefore, I believe I can do that bridge.

Yes, actually you're right. I'm more than two decades with Henkel and I can say that sustainability is not a trend to pick. In March next year we are going to report, publish our sustainability report, and we have been taking this topic very seriously and driving it for many years. And we report very transparently on our commitments and our progress. So sustainability really is part of our DNA. But of course, the topic has gained momentum. It is becoming increasingly important for us and for our stakeholders: for investors, for consumers, for job applicants, for our own employees. People want to know what does the company stand for. They want to know how they can contribute to the important challenges of our world. That is clearly their expectation.

We have defined three priorities where we, not just Henkel, all of us globally urgently need to accelerate progress. So the first one is climate change, the second one is circular economy, and the third one is social progress. Let me give you three concrete examples because it's not just about commitments, it's also and mainly about actions. On climate, we recently closed a power purchasing agreement with a new wind park in the USA. The capacity equals 100% of the electricity demand of Henkel's operations in the USA. This will save about 100,000 tons of CO2, which is equivalent of taking 50,000 cars off the road. And to understand the importance, you must know that the USA is our largest individual market. We have more than 70 locations here, so you see immediately the impact. Second topic is circular economy. We are the first consumer goods company to partner with Plastic Bank. The principle works like this: in countries where there is poverty and no functioning waste system, people can drop off plastic waste at collection centers and exchange it for value. In this way, plastic can be recycled and poverty can be fought. And we as Henkel use the so-called social plastic in our product packaging. Together with Plastic Bank, our partner, we will set up 400 new collection points in Egypt. And last example for today: social progress. We are collaborating with Solidaridad to support smallholder farmers and further promote the production of sustainable palm oil. With our initiatives, we have already reached 30,000 smallholder farmers. These three examples show what we need are concrete actions, but it also shows we cannot do it alone. Collaboration and joining forces are key along the entire value chain.

Thank you for having me.