The Laundry Sustainability Project for Heavy Duty Liquids “LSP-L” The Laundry Sustainability Project for Heavy Duty Liquids “LSP-L” A sector initiative towards more sustainable laundry detergents June 2010

2 A.I.S.E. sustainability initiatives Objectives   Promote and demonstrate continual improvement in the industry sustainability profile   Communicate proactively with consumers and stakeholders   Build trust in society for our industry

3 Code of Good Environmental Practice (1997) Washright (1998) Laundry Sustainability Projects (2006 +) Save Energy and Water project (2006) Overview DUCC (2000) HERA* (1999) Safe Use Icons (2005) Charter for Sustainable Cleaning (2004) EPAA (2005) AFPSP (2007) CLEANRIGHT* (2008) (*with Cefic)

4 A.I.S.E. LSPs: Experience The “Code” ( )  Scope: All Household Laundry Detergents  Aim: EU 15 + CH, IS, LI, NO  Timing: 1 Jan Dec  Participation: 100 companies in 18 countries (>90% of the market)  “Compaction ” — Average recommended dosages: – –150g/wash in 1997 – –110g/wash in 2002  Savings (over the 5 years): – –1 Million tons detergents – –74,000 tons packaging

5 A.I.S.E. LSPs: Experience LSP-1 ( )  Scope: Household Laundry Powder Detergents  Aim: EU 27 + CH, IS, LI, NO + Balkans’ region  Timing: 1 Jan Dec  Participation:17 companies in 12 countries (in the CEEC region) (80%+ of these market)  “Compaction” (≥ 33% weight) ; average recommended dosages: – –150g/wash in 2005 – –100g/wash in 2007  Savings (over the 3 years) : – –400,000 tons detergents – –21,300 tons packaging

6 A.I.S.E. LSPs: Experience LSP-2 ( )  Scope: Household Laundry Powder Detergents  Aim: EU 27 + CH, IS, LI, NO  Timing: 1 Jan Dec  Participation:13 companies in 19 countries  “Compaction” ; average recommended dosage below 85g/wash  Expected achievements (over the 2 year project life) : – –300,000 tons of detergents – –12,000 tons of packaging

7 A.I.S.E. LSPs: Experience “Code” — LSP-1 — LSP-2 A success:   > 80% of the market committed   sustainability benefits delivered But:   focussed only on “Heavy Duty Low Suds” laundry powder detergents Opportunity for a similar initiative on laundry liquid detergents => The A.I.S.E. LSP-L initiative

8 LSP-L: Project details Principles:   Follow-up to the A.I.S.E. “Code of Good Environmental Practice”, LSP-1 and LSP-2 Regional scope:   EU 27 + Iceland, Liechtenstein, Norway and Switzerland   Companies can choose the countries for which they wish to commit Product scope:   Heavy Duty Low Suds (HDLS) liquid detergents for household laundry   Project open to all companies placing HDLS household laundry liquid detergents in the region (members and non- members of an A.I.S.E. National Association)

9 LSP-L: Project details Companies commitment:   To concentrate their HDLS liquid detergents, reaching a recommended dosage* ≤75 ml   To optimize the usage of packing materials, committing to a reduction by ensuring a high fill level, at least overall in line with current filling levels   To communicate to consumers about the correct use of concentrated products through on-pack communication, using the A.I.S.E. non-branded material (see next slides) *for a standard washing machine load of “normally soiled” fabrics to be washed using water of medium hardness

10 LSP-L: Timetable July 1, 2009: Project “opened” Date from when companies have been allowed to sign a “Commitment Letter” on a confidential basis with A.I.S.E. Internal promotion in the network/industry via National Associations July 1, 2010: Project “activated” Date (but not before) from when companies will be allowed to place “concentrated” products under LSP-L on the market and use on those the A.I.S.E. on-pack communication materials (as specified in the “Commitment Letter”). July 2010 – June 2011: Implementation (project life-time)

11 LSP-L: Potential Savings Expected achievements After its full implementation, LSP-L is estimated to save*, per year:   400,000 Tons of liquid Detergents   16,000 Tons of Packaging   14,000 Truck journeys * versus 2008 situation

12 Consumer communication Central guidance provided by A.I.S.E. to accompany the product changes and encourage sustainable consumption by consumers, inviting them to ADAPT their habits vis-à-vis new dosages Clear-cut information on:  The new voluntary industry initiative  Concrete tips about changing dosing behavior On-pack communication/key messages with: => MANDATORY REQUIREMENTS: 1.Front label patch 2.Dosing grid with new on-pack back label patch => OPTIONAL 3. “Washright” Panel

13 LSP-L: On-pack material => for products subject to compaction Front label Back label Clear signal that the dosing needs to be changed To be used in the context of the dosing table N.B. :The 40 washloads and the 75 ml dosage are just examples

14 LSP-L: On-pack material => for products already compacted Front label (non-mandatory) Back label (non-mandatory) N.B. :The 40 washloads and the 75 ml dosage are just examples

15 NB:This panel is also being made available to any company placing laundry detergents on the EU market => Objective : Give clear “reasons why” and benefits of changing habits Strong recommendation to use, whenever possible, the A.I.S.E. “Washright panel” on their labels LSP-L: On-pack material => for all products

16 Consumer Communication/ Other opportunities => Neck-hangers:  Developed centrally  Template text; artwork provided  To be placed the relevant products: - to be converted - or just converted  Decision of the companies committed to develop, place and fund those, as opportune

17 LSP-L: Consumer Messages Less impact on environment Less liquid per wash Less transport per wash Less packaging per wash Follow the instructions to get the best from your detergent! Dose correctly - use a “beaker” to measure your liquid Look at the number of washes, not the size of the bottle Follow the tips to get the best performance Follow the tips to minimise the impact on the environment Same power from less detergent More concentrated New packs are clearly indicated with the “beaker” symbols New dosing instructions Less liquid to do the same job than you needed before

18 => Joint campaign with the trade A series of template material has been developed centrally by A.I.S.E. for potential use in store:   Optimal way to reach out to consumers   Joint efforts by industry and retailers to promote sustainable consumption (cf “EU Retail Forum”) National Associations to coordinate feasibility of such a campaign with local trade Material available:   Shopping trolley branding template   Shelf stopper + pop-up template   Leaflet template   Category banner template   Poster template Consumer Communication/ Other opportunities

19 LSP-L: Trade campaign Trolley

20 LSP-L: Trade campaign Shelf stopper + Pop-up

21 LSP-L: Trade campaign Leaflet (A5 recto verso)

22 LSP-L: Trade campaign Leaflet displayer

23 LSP-L: Trade campaign Poster

24 LSP-L: Financial support A “central budget” (at A.I.S.E. level) will cover for all the central expenses. Several “national budgets” should also be organised by the NAs in order to cover for local communication expenses in each country. Central contributions: all companies joining the project contribute to the central costs according to their “regional share” of the HDLS household laundry liquid detergents’ market during year 2008 (their national VMS*, weighted by market size) Companies below 1.0% regional share need to contribute to the central costs with a flat fee of 1,000 € Local contributions: only the companies with a national VMS in 2008 above 1.0% contribute to the local expenses, according to their national share of the HDLS household laundry liquid detergents’ market during year 2008 (their VMS within a given country) * VMS = Value Market Share

25 LSP-L: Next steps Continue to discuss internally Ensure maximum support by the NA Board and the member companies Engage non-member companies Engage the trade to:   Inform them about the change that will occur in the market   Attract their interest for their own Private Label brands   Look for opportunities of joint communication activities Engage key stakeholders Develop communication campaign events Implement and support the project

26 THANK YOU – Q&A SESSION More info: