Betterbusiness 2015 RB Sustainability Report About This Report Overview Better Financials Better Society Better Environment Our Performance & Assurance
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betterbusiness 2015 RB Sustainability Report About this report Overview Better financials Better society Better environment Our performance & assurance About this report WHAT’S INSIDE? RB has been communicating its sustainability RB at a glance Chief Executive’s Sustainability is performance for a number of years, this being on page 2 introduction on page 3 at the heart of our our 15th annual publication. This report details how we perceive sustainability in the context betterbusiness of our business, how we manage it, how we strategy. are performing, and the levels we plan to reach. Sustainability is at the heart of ourbette rbusiness corporate strategy and this year we have taken an integrated approach to reporting by aligning the contents of the sustainability and annual bettersociety betterenvironment reports. The report describes our general on pages 5-12 on pages 13-19 sustainability approach and gives a summary Our vision Our purpose of our performance under the strategic A world where people To make a difference pillars and . bettersociety betterenvironment Overview betterenvironment are healthier and live by giving people As a supplement to this report, the Detailed 1 Sustainability highlights Greenhouse gas emissions better. innovative solutions 2 RB at a glance 14 Our products Sustainability Report 2015 provides a more 3 Chief Executive’s introduction 15 Our manufacturing for healthier lives thorough description of our operational approach Water and happier homes. betterfinancials 16 Our products to managing sustainability and a comprehensive 4 betterfinancials summary 17 Our manufacturing review of our performance. The RB Annual Report Waste bettersociety 18 Reducing waste describes activities within the betterfinancials Workplace Responsible sourcing 6 Our people 19 Natural raw materials Read our Annual pillar. The 2015 Annual Report, Detailed 7 Health & safety Report at www.rb.com Sustainability Performance Report and other 8 Human rights Our performance Communities & assurance policies, standards and documents can be found 9 Healthier lives 20 Our performance and assurance at rb.com. 10 Save the Children 21 Our sustainability approach Our products 11 Product innovation This report has been written in accordance with 12 Product stewardship GRI G4 guidelines and selected data have been externally verified by Ernst & Young (EY) – on page 20. About this report Overview Better financials Better society Better environment Our performance & assurance Sustainability Better society Better environment highlights Workplace So far Going forward GHG So far Going forward Our people 49 Expand our focus of Our products 1% 1/3 nationalities in diversity and talent increase in CO2 reduction in CO2 senior management by improving the footprint1 footprint by 20201 retention rates of women from managers to senior Our 14% 40% leaders manufacturing reduction in CO2 reduction in CO2 emissions1,2 emissions by 20201 RB is committed to continually Health & safety 25% Continued improving its sustainability reduction in LWDAR reduction of injuries performance. We have set goals that Human rights 51% Respect human Water increase in supplier rights across our help us deliver on this commitment audits compared operations and Our products 9% 1/3 to 2014 supply chain reduction in water reduction in water and we regularly review and impact1 impact by 20201 communicate our performance. 89% RB site non- conformances Our 30% 35% closed to date manufacturing reduction in water reduction in water consumption2 consumption by 20201 The highlights table shows RB’s 2015 performance against a Communities selection of goals from each of the domains of sustainability, Waste along with their progress status. Healthier lives 237m 200m ✔ people reached with reached by 20204 A summary of selected KPIs that have been assured by EY Reducing 14% 10% ✔ health and hygiene 1,2 can be found on page 20. Further details on RB’s sustainability waste reduction in waste reduction in waste messaging by 20203 performance can be found in the Detailed Sustainability Performance Report 2015 at rb.com 89% Factories with zero 100% Save the Children £6.5m Remove diarrhoea waste to landfill Factories zero committed to as one of the top waste to landfill by Save the Children killers of children 2020 Our products Responsible sourcing Innovation 6% 1/3 net revenue from net revenue from Natural raw 70% All materials palm oil traceable natural raw more sustainable more sustainable to mill5 materials to be products products by 2020 Progress Key: responsibly sourced 100% by 2020 On track Focus 2016 Off track ✔ Achieved palm oil covered by Green Palm Certificates 1. Compared with 2012 baseline. Stewardship 2. Per unit of production. 64% 100% 3. Increased 2020 target to 20% reduction over 2012 baseline. transparency transparency 4. Increased 2020 target to 400m. 5. Excluding surfactants. RB / Sustainability Report 2015 1 About this report Overview Better financials Better society Better environment Our performance & assurance About this report Project Supercharge RB at a glance Creating a simple, more agile organisation is a key objective of Health Net revenue Project Supercharge. Therefore, in 2015 we have announced our intention to reduce the three geographic areas to two. Market positions • Nurofen and Gaviscon are leading analgesic and gastro-intestinal brands in 33% The learnings of combining Europe and North America will be Europe and Australia applied to the emerging markets which we call DvM. The • Durex is No.1 worldwide in condoms for The right markets, both safe and more pleasurable sex organisational changes will provide the framework to deliver bigger, • Strepsils is No.1 in medicated sore throat better and more scalable innovation, combined with improved globally categories and brands. in-market activation at a country level. • Mucinex is the No.1 cough brand in the US • Scholl has leading positions in many footcare markets RB is the world’s leading consumer ENA health and hygiene company. The Europe (including Russia/CIS and Israel) Hygiene Net revenue Company has operations in over 60 North America countries, with headquarters in London, Australia/New Zealand Market positions • RB is No.1 globally in the overall category of Dubai and Amsterdam, and sales in surface care 41% In 2015, ENA had sales of £5,830m representing • No.2 worldwide in lavatory care with Lysol in North America and Harpic across Europe and most countries across the globe. 66% of Total NR. Developing Markets • Dettol is No.1 worldwide in antiseptic liquids • Finish is No.1 worldwide in automatic We are an organisation with well-loved and dishwashing • No.2 worldwide in pest control with the trusted brands that help people around the Powerbrand Mortein, the Group’s DvM international brand, supported by local brand world live happier and healthier lives. franchises like d-Con in North America North Africa, Middle East, Turkey • Veet is No.1 worldwide in depilatory products Africa FTSE4Good index South Asia – India, Bangladesh, Sri Lanka Home Net revenue North Asia – China, Hong Kong, Taiwan RB’s corporate social responsibility performance Market positions has led to a continued inclusion within the Latin America • Vanish is the undisputed world leader in fabric FTSE4Good Index Series. treatment 19% ASEAN – Thailand/Philippines, Indonesia, • Calgon is No.1 worldwide in water softeners Criteria for membership of FTSE4Good – which • Woolite is No.2 worldwide in garment care recognises companies who work to improve Malaysia/Singapore, Japan, Korea • Air Wick is No.2 worldwide in air care environmental and social practices – include human and labour rights, climate change and In 2015, DvM had sales of £2,695m representing environmental management. A company’s 30% of Total NR. performance is reviewed every six months. Dow Jones Food Portfolio (including food) Sustainability Index Net revenue RB has once again been selected as a member We run Food as a standalone business. The Portfolio category includes of the Dow Jones Sustainability Index (DJSI). As Its brands include French’s, the leading our laundry and fabric softener one of the most important sustainability mustard brand in the US. business, as well as our Food brands. rankings in the world, the DJSI is based on 7% corporate economic, environmental and social performance with a strong focus on long-term In 2015, food had sales of £349m representing Read more in our Annual Report. shareholder value. Only the best-in-class 4% of total NR. companies are included. 2 RB / Sustainability Report 2015 About this report Overview Better financials Better society Better environment Our performance & assurance bettersociety Chief Executive’s Under our better society pillar, we consider the social impacts of our betterbusiness products, our stewardship programmes, the safety and well-being of introduction our employees, third parties and suppliers, and the human rights of all Our strategy betterbusiness encapsulates everything we do. our internal and external partners. Financially, socially and environmentally we act responsibly and sustainably. We believe passionately in doing things the Our brands can provide vital health and hygiene solutions to those who right way to help us deliver high-quality products and drive Making a meaningful difference is at most need them. In 2013, we announced our commitment to reach over shareholder returns. 200m people, helping to improve their health and hygiene. We have the heart of how we do business. achieved this goal in 2015