WEBVTT 1 00:00:00.458 --> 00:00:01.501 - Lauren, welcome. 2 00:00:01.501 --> 00:00:04.003 Despite all of the talk about sustainability 3 00:00:04.003 --> 00:00:07.382 and the environment, are we mainstream yet? 4 00:00:07.382 --> 00:00:08.591 - Unfortunately, no. 5 00:00:08.591 --> 00:00:09.926 I think we're making progress 6 00:00:09.926 --> 00:00:11.261 and there is plenty of growth 7 00:00:11.261 --> 00:00:13.555 of sustainable products and services 8 00:00:13.555 --> 00:00:16.015 and lots of companies making renewed commitments 9 00:00:16.015 --> 00:00:17.475 or bolder commitments 10 00:00:17.475 --> 00:00:19.811 but there's still a lot of work to do. 11 00:00:19.811 --> 00:00:21.104 There's honestly a huge gap 12 00:00:21.104 --> 00:00:24.441 between what consumers say and what they do 13 00:00:24.441 --> 00:00:27.610 because maybe 80% or more that we've measured 14 00:00:27.610 --> 00:00:30.071 of consumers are saying they're interested, 15 00:00:30.071 --> 00:00:33.324 they're concerned about sustainability, but when it comes 16 00:00:33.324 --> 00:00:35.952 to action, when we're forcing them to make trade-offs 17 00:00:35.952 --> 00:00:36.953 it's only maybe 10 18 00:00:37.787 --> 00:00:39.372 or 15% in different categories and markets 19 00:00:39.372 --> 00:00:42.000 we tested who are actually making the sustainable choice. 20 00:00:42.000 --> 00:00:43.251 Because there are trade-offs, 21 00:00:43.251 --> 00:00:46.296 it's not easy to make the sustainable choice now. 22 00:00:46.296 --> 00:00:47.505 - How do you bridge that gap? 23 00:00:47.505 --> 00:00:48.506 Where do we start? 24 00:00:48.506 --> 00:00:50.508 What are the first steps to take? 25 00:00:50.508 --> 00:00:52.427 - Well, honestly, I think we need to flip the script. 26 00:00:52.427 --> 00:00:55.388 We need to start from what actually drives consumer choice, 27 00:00:55.388 --> 00:00:57.140 what are their core needs? 28 00:00:57.140 --> 00:00:58.224 And if we understand those, 29 00:00:58.224 --> 00:01:00.101 then we can connect them to sustainability. 30 00:01:00.101 --> 00:01:02.979 We can understand where we can broaden the dialogue. 31 00:01:02.979 --> 00:01:04.647 Where is there an opportunity to talk 32 00:01:04.647 --> 00:01:07.734 about sustainability as an and, not an or? 33 00:01:07.734 --> 00:01:11.738 So “My alternative protein is tasty and nutritious 34 00:01:11.738 --> 00:01:13.656 and better for the environment”, 35 00:01:13.656 --> 00:01:16.326 or “My electric vehicle is fast 36 00:01:16.326 --> 00:01:19.662 and sporty and it actually has a lower cost 37 00:01:19.662 --> 00:01:21.539 of ownership and a lower footprint.” 38 00:01:21.539 --> 00:01:24.667 And if we can do that, that's one big step. 39 00:01:24.667 --> 00:01:27.587 But beyond that, there are real barriers. 40 00:01:28.546 --> 00:01:29.756 There are convenience, accessibility, 41 00:01:29.756 --> 00:01:31.466 innovation barriers we need to solve 42 00:01:31.466 --> 00:01:33.593 and that's going to take real work. 43 00:01:33.593 --> 00:01:35.136 - So there's lots of challenges there. 44 00:01:35.136 --> 00:01:36.888 How do we overcome them? 45 00:01:38.098 --> 00:01:40.308 - Well, I think that one thing we need to do 46 00:01:40.308 --> 00:01:42.143 is actually integrate the objectives 47 00:01:42.143 --> 00:01:44.145 and integrate into the commercial team. 48 00:01:44.145 --> 00:01:46.481 So many of the clients that I'm working with, 49 00:01:46.481 --> 00:01:49.025 they have bold sustainability ambitions 50 00:01:49.025 --> 00:01:50.819 but they are managed separately 51 00:01:50.819 --> 00:01:52.153 from their commercial objectives. 52 00:01:52.153 --> 00:01:55.240 And there's this constant short-term, long-term trade off. 53 00:01:55.240 --> 00:01:57.450 I think the opportunity actually is to say, 54 00:01:57.450 --> 00:01:58.868 we're trying to solve for all of that. 55 00:01:58.868 --> 00:01:59.702 We are trying to solve 56 00:01:59.702 --> 00:02:03.123 for what is good for consumers and driving consumer demand. 57 00:02:03.123 --> 00:02:05.708 We're trying to solve for what is good for the business 58 00:02:05.708 --> 00:02:07.293 and we are also trying to solve 59 00:02:07.293 --> 00:02:08.502 for what's good for the environment. 60 00:02:08.502 --> 00:02:11.422 But that means we have to have integrated objectives 61 00:02:11.422 --> 00:02:15.218 and we also need to put all those teams together, 62 00:02:15.218 --> 00:02:16.928 the ones that are looking at marketing 63 00:02:16.928 --> 00:02:19.806 and consumer insights and what drives consumer choice. 64 00:02:19.806 --> 00:02:21.683 We need to put the financial team 65 00:02:21.683 --> 00:02:23.017 and the incentives that drive 66 00:02:23.017 --> 00:02:25.228 total shareholder return together, 67 00:02:25.228 --> 00:02:28.064 and the innovation team, R&D, 68 00:02:28.064 --> 00:02:29.732 all of those things have to come together 69 00:02:29.732 --> 00:02:31.985 to say how do we solve this challenge? 70 00:02:31.985 --> 00:02:33.069 - Are there any brands at the moment 71 00:02:33.069 --> 00:02:34.487 that are doing this well 72 00:02:34.487 --> 00:02:37.991 or as well as can be or best practices that we can look at? 73 00:02:37.991 --> 00:02:40.410 - There are certainly some that are doing a good bit. 74 00:02:40.410 --> 00:02:42.704 I honestly think we all have a lot more work to do 75 00:02:42.704 --> 00:02:45.957 but there are some who are much more forward looking. 76 00:02:45.957 --> 00:02:49.419 For example, Reckitt has done a lot to integrate, 77 00:02:49.419 --> 00:02:51.379 for example their Finish brand 78 00:02:51.379 --> 00:02:54.007 to talk about how can you actually 79 00:02:54.007 --> 00:02:55.717 use the dishwashing detergent 80 00:02:55.717 --> 00:02:57.886 that not only saves busy families time 81 00:02:57.886 --> 00:03:01.097 but it also saves water if you can skip the rinse. 82 00:03:01.097 --> 00:03:02.765 They've made the product more effective 83 00:03:02.765 --> 00:03:04.642 and they've marketed it in such a way 84 00:03:04.642 --> 00:03:07.270 that it actually reaches a core consumer need. 85 00:03:07.270 --> 00:03:08.646 Because realistically, 86 00:03:08.646 --> 00:03:10.315 what I want when I wash my dishes 87 00:03:10.315 --> 00:03:12.025 is not to have to do any extra work, 88 00:03:12.025 --> 00:03:14.485 but my dishes to be clean, right? 89 00:03:14.485 --> 00:03:17.822 And for example, electric vehicles. 90 00:03:17.822 --> 00:03:20.408 I think Tesla has been really interesting because you think 91 00:03:20.408 --> 00:03:24.037 about why did the first people adopt an electric vehicle? 92 00:03:24.037 --> 00:03:26.331 Well, they were maybe willing to go well out of their way 93 00:03:26.331 --> 00:03:29.500 but since then, it's because that car is trendy, 94 00:03:29.500 --> 00:03:31.169 because it's fast. 95 00:03:31.169 --> 00:03:32.003 It goes zero to 60 in a few seconds. 96 00:03:32.003 --> 00:03:34.047 It has a big dashboard and it's sporty. 97 00:03:34.047 --> 00:03:36.466 There's a status symbol associated with it, 98 00:03:36.466 --> 00:03:37.508 and that's actually starting 99 00:03:37.508 --> 00:03:39.469 to then take into the mainstream. 100 00:03:39.469 --> 00:03:40.845 Google Maps went from talking 101 00:03:40.845 --> 00:03:42.597 about what is the eco-friendly route, 102 00:03:42.597 --> 00:03:44.724 which some people would choose to take, 103 00:03:44.724 --> 00:03:45.725 to what's the fuel efficient route? 104 00:03:45.725 --> 00:03:48.353 Well now it saves you money, it saves you fuel. 105 00:03:48.353 --> 00:03:51.314 By the way, that is also still the eco-friendly route 106 00:03:51.314 --> 00:03:53.483 but it's talking about it a different way. 107 00:03:53.483 --> 00:03:55.235 There's also personal care categories 108 00:03:55.235 --> 00:03:57.237 being totally reinvented. 109 00:03:57.237 --> 00:04:00.907 So Arcaea is a venture established by Chanel 110 00:04:00.907 --> 00:04:02.617 and others to think 111 00:04:02.617 --> 00:04:06.663 about how do you completely rethink products 112 00:04:06.663 --> 00:04:08.081 in a way that is disruptive, 113 00:04:08.081 --> 00:04:11.501 better for the consumer and better for the environment. 114 00:04:11.501 --> 00:04:12.877 There are a lot of examples like that 115 00:04:12.877 --> 00:04:14.629 but we certainly need a lot more. 116 00:04:14.629 --> 00:04:16.172 - Lauren, thank you so much. 117 00:04:17.130 --> 00:04:17.923 - Thank you.