Board Statement

Dear readers,

2018 was a solid year for Beiersdorf. Both our Business Segments – Consumer and tesa – contributed to the growth. Despite the difficult business environment in all major markets, we have succeeded in expanding our business in line with our long-term commitment to sustainability.

Consumer

Our sustainability strategy “We care.” is based on three pillars: “Products, Planet, People”. It covers our activities along the entire value chain: from the sustainable sourcing of raw materials to the reduction of our environmental footprint, from the health and safety of our employees to the support of socially disadvantaged families around the world. In the “Products” area we have come a big step closer to reaching our ambitious target for 2020 – among other initiatives through the continuous conversion of our palm oil-based raw materials to certified ingredients from sustainable sources. In addition, as part of our “Responsible Sourcing” program, we have initiated a first smallholder project in West Kalimantan (Indonesia). In cooperation with the “World Wide Fund for Nature” (WWF), we are actively supporting sustainable palm oil production on the ground whilst improving living conditions of the communities in the project region. Our work on the “Product Sustainability Roadmap”, which was established in 2017, is showing first encouraging results as well: They will be visible in the market in 2019, especially in the area of plastic packaging. At the same time, we have made great progress in the global elimination of microplastics from our formulas. Preparations were completed by end of last year to launch NIVEA products in 2019 in which opacifiers will have been fully replaced by readily biodegradable alternatives. We also made significant progress in the area of “Planet” along our declared ambitions for 2025. In particular, we were able to reduce our CO2 emissions per product by 59% in the reporting year and we increased our electricity supply from renewable energy sources worldwide to 81%. In 2018 besides all our 16 global production sites achieving “Zero Waste to Landfill”, we stopped waste disposal at landfills in 21 of our distribution centers. In the “People” area, having a lasting positive impact on the life situation of our fellow citizens, in the neighborhood, in local communities, and beyond, continues to be the passion of many of our employees. In 2013 we had set ourselves the goal to improve the lives of one million families by 2020. By the end of 2018, we had reached 961,936 families with numerous local and global initiatives. Going forward, our focus will be on developing a new long-term social vision. The framework of the United Nations “2030 Agenda for Sustainable Development” will guide us in this renewed goal-setting process. We would like to wholeheartedly thank all Beiersdorf employees throughout the world for their commitment and actions around sustainability. Also in 2018, they were the ones who passionately integrated sustainability into their work every day and in doing so continued to bring our global sustainability agenda to life.

tesa

Sustainability is also an integral part of tesa’s business processes. The focus has been put on the four strategic action fields: environment, employees, products, and society. They are regularly reviewed. Within its manufacturing processes tesa focuses for example on the reduction of CO2 emissions, through increased energy efficiency, procurement of electricity from renewable sources as well as self-generation of electricity. tesa has set itself the target of reducing the specific CO2 emissions per ton of end product (location based) by an additional 10% by 2020 compared to the reference year of 2015. As of the reporting date, tesa stood at –8.3% and was on course to fulfill its promise. In addition, tesa is continuously working to make its product ranges more environmentally friendly by using energy-efficient, solvent-free manufacturing processes. In 2018 tesa converted more product ranges to ACX technology, resulting in further energy, material, and solvent savings. Wherever possible and reasonable, tesa also uses renewable and recycled raw materials. As part of the corporate citizenship program “tesa connects”, tesa employees around the world once again volunteered for numerous initiatives in the reporting year.

2019: Sustainability as a Component of new Corporate Strategy

Sustainability needs a holistic approach: firmly anchored in the corporate culture and strategy, seamlessly integrated in decision-making and business processes. Following this belief, our efforts in pushing an impactful sustainability agenda will further intensify in 2019. Our new corporate strategy will support sustainability with new innovative initiatives as well as ambitious targets. We will share these developments with the public in due course. Now we kindly invite you to have a closer look at our 2018 projects and activities. We certainly also appreciate your feedback.

Sincerely,

Stefan De Loecker
Zhengrong Liu

Stefan De Loecker

Chairman of the Executive Board

Zhengrong Liu

Member of the Executive Board
Human Resources | Sustainability | Services