Company Name: Beiersdorf China
Award Category: ESG Performance
Company Size: Large Business Group
Environment
Climate Change:
By 2025, we aim to reduce our consumer business’ greenhouse gas emissions by 30% in absolute terms (compared to 2018). We want all production in our plants to be carbon-neutral by 2030.
By 2025, we want to use 50% less fossil-based virgin plastic and more than 30% recycled material for our plastic packaging. 100% of our packaging will be refillable, reusable or recyclable.
To establish performance in managing GHG track reductions internally and adapt early to national and international trends, Beiersdorf China carry out the accounting of the previous year's greenhouse gas emissions annually and prepare a report based on these results since 2022. The greenhouse gases are inventoried by our company include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCS), and perfluorocarbons (PFCS), sulfur hexafluoride (SF6), nitrogen trifluoride (NF3).
Natural Resources and Energy:
Promote energy-saving activities and reduce the electricity consumption (such as energy-saving renovations or the application of new technologies). The company built photovoltaic generation system, and the system generated 1017142.2 kWh of electricity in 2022. This is equivalent to CO2 emission reduction of 599.66 t CO2e.
Strengthen equipment maintenance, reduce the abnormal operation of equipment, improve equipment operation efficiency, and reduce energy consumption (such as regular equipment maintenance, timely equipment update, etc.);
Reduce energy use:
Use more energy efficient energy saving equipment, such as using energy saving lamps, variable frequency equipment, etc.;
Reduce waste at each point of use, e.g., reduce hot water use through production process optimization to reduce steam consumption, and reduce steam usage by 35% per unit of production in 2022 as compared to 2018;
Daily control and tracking of daily energy consumption through data driven energy data.
Prevention of Pollution:
CO2 emission reduction:
Our PC in Shanghai got Carbon Neutrality Certification in 2022 for the first time. PV power has reached 30% since 2018, with a CO2 reduction of 200T each year. Compared to 2018, energy intensity in Electricity & Steam rose to 34%, achieving the global goal of 30% reduction ahead of year 2025. We have provided green shuttle bus service for employees since 2019, 70T CO2 annual reduction. Embedded VAS in the warehouse has been reduced 26.9T CO2 reduction each year.
The optimization of our products’ packaging to more sustainable alternatives play a major role, and we follow the approach of the so-called 4 R’s: Reduce, Reuse, Recycle and Replace. Environment-friendly packaging design, less and lighter, 9.6T CO2/year. POSM has assortment and standardization.
Circular resource usage:
We tried to achieve zero waste to landfill and realized 32% waste reduction compared to that in 2018. We produced PCR bottles for 16 SKU which occupies 37% of total bottles. Material paper package has been replaced by recyclable bin/carton 70T wood pulp per year.
Water usage efficiency:
Compared to 2018, 2023 has seen a 32% water intensity improvement, achieving the global goal of 25% reduction ahead of 2025.
Productivity of DI water system has increased 11% compared to that in 2020, with a 4000T water usage reduction yearly by cleaning optimization and recycle. Use rainwater for garden.
Sustainable sourcing:
We use 100% sustainably certified palm (kernel) oil and its derivatives. Our primary paper-based packaging, VAS folding boxes, POSM and gift boxes are 100% FSC* certified.
Other Actions Taken for Environmental Protection:
Beiersdorf China has cooperated with non-profit organizations for years and created a long-term impact on environmental sustainability. In September 2022, our employees ventured into the Qinghai-Tibet plateau, collaborating with Green River to carry out a sustainability project by collecting rubbish. Inspired by this, Beiersdorf China introduced a new oil-control product line. The bottles are made from 100% recycled plastic, effectively reducing carbon dioxide emissions by 16%. In April 2023, Beiersdorf and its brand Eucerin participated in the #ZeroCarbonForEarth# charity walk on World Earth Day. In July, we gathered more than 160 volunteers to carry out "Clean up the River" campaign, picking up 1,754 pieces of trash weighing 82.56 kilograms at the riverbank with 3222 volunteer hours in Shanghai’s Riverside Forest Park. Link: https://mp.weixin.qq.com/s/KfwOWKjc_yBc9Aj_qGrvRw
On May 22, 2023, the International Day of Biodiversity, Beiersdorf China, together with Xinhua News, Director of the Research Office of the China Foundation for Biodiversity Conservation and Green Development headed into the Dali Wuliang Mountain National Nature Reserve in Yunnan Province, following a forest ranger, to explore the miraculous plant, Centella asiatica. The company filmed a promotional video about biodiversity. Link: https://mp.weixin.qq.com/s/oTXldWJiI1wIUS8dZAodYg
Social
HR Development and Engagement:
In order to protect the health and rights of employees, the company has set up Employee Assistance Program (EAP), providing thematic training including workplace communication, emotion regulation, and maintenance of family relationships, as well as a 7×24-hour employee psychological assistance hotline.
The company pays attention to the work-life balance of employees. We advocate flexible working system and set up Care Beyond Skin Day as a corporate annual vacation; we also set up various associations and clubs to enrich the life of employees after work.
The company sets up a clear employee learning and development schedule every year, and strongly supports the development of employees' professional ability and quality improvement through diverse forms: Sharing Town, an on-site lecture program, has been set up, including the explanation of the company's entire business (finance, supply chain, R&D, etc.) and the popularization of industry knowledge; and Qing Xue Tang has also been introduced to provide online courses on working skills.
Diversity, Equity and Inclusion:
Concerning educational social responsibilities, "Virtual Education Program" reached Qinghai Province through digitalization. Using live streaming, the project has provided educational assistance for Tibetan children. 20 Beiersdorf employees were recruited to contribute 10 health courses with more than 520 minutes, benefiting more than 1400 teachers and students. Beiersdorf China has also donated “love bags” for children from poor and remote areas. For these efforts, the company was awarded the "CSR CHINA TOP100 Best Responsible Enterprise Brand of the Year" and "CSR CHINA Outstanding Volunteer Service Project of the Year.
Beiersdorf and its brand Eucerin donated special gifts for the children of the Ninth Primary School in Chengguan District, Lhasa.
Product Liability:
Beiersdorf China is committed to protecting the intellectual property rights of every product and safeguarding the rights and interests of every customer. We have set a brand protection department, BPU, actively registering trademarks and filing records; we join non-governmental organizations, cooperate with law enforcement agencies at all levels and IPR agencies, cracking down on criminal and administrative cases concerning counterfeiting; we also join the government's popularization and education of intellectual property rights protection by producing digital animation materials for the reference of all walks of life in order to fulfill the social responsibility of the enterprise.
All of our product labels are required to be labeled with our consumer hotline. Consumers can call for feedback if they have any questions about the products. The company has established a consumer consultation and complaint handling process to help consumers answer questions and solve problems in time, to ensure the quality of the company's products and service reputation and enhance consumer loyalty and satisfaction.
Supply Chain:
We have a supplier selection policy in line with sustainability.In raw materials, sustainable certified palm (kernel) oil and its derivatives are used; FSC certified materials are used for paper packaging, shelf paper products, and FSC logos are printed when producing them.
The company has a standardized, systematic and scientific review mechanism for the sustainable development part of the suppliers, and evaluates the qualifications of the suppliers in terms of business, R&D, technology, quality and regulations through a special scoring system. Items assessed include: soundness of the waste recycling system and obtaining of accreditation certificates; establishment and validation of the effectiveness of the waste treatment process; validation of the effectiveness of impurity screening; monitoring of the stability of the equipment and process; quality control of the final product; and providing at least three batches of the product for rigorous and comprehensive analysis at our head office. 18001, EMAS, EuCertPlast certificates; whether the supplier respects and treats plastic waste in accordance with EN 15347 standards or similar, whether the supplier respects and treats different materials in accordance with EN 15344 (PE), EN 15345 (PP), EN 15348 (PET) standards, and so on. The final selection of suppliers to work with is based on the scoring results.
The supply chain plays an integral part in our Sustainability journey as a company. Climate Care includes all aspects of the supply chain, starting from water emissions, green energy, circular economy, packaging avoidance and reduction and CO2 neutrality. It ranges from how and where we source our ingredients to the transparency that we create on the value chain and how we launch and manufacture new sustainable products. It is not only about doing the right thing, but also about doing things right. This addresses the responsibility we have for the society and encompasses our Code of Conduct, Compliance and business ethics as well as social and environmental impact programs.
Community Engagement:
Beiersdorf China responds to the call of "Earth Hour" by recycling branches and leaves to make handicrafts while switching off the lights in every office area. Link: https://mp.weixin.qq.com/s/mhxXGNHUjM089LboPfhn0Q
Beiersdorf China also launched "CARE BEYOND SKIN Low-Carbon Communication Ambassador Program." Through 4 live webinars and an innovation competition, it gathered businesses, experts, and youth to exchange views on environmental protection topics. The webinars reached an audience of 13,000 viewers. The competition encouraged university students to spread the "low-carbon concept" to more people through creative videos and plans. It has attracted a total of over 50,000 students nationwide, with close to 50 works submitted from universities across the country. So far, the entries have reached more than 17 million people online. Based on these actions, Beiersdorf China has been honored with the title of "Low-carbon Model of 2022."
Beiersdorf fulfills its responsibility for social construction by annually sponsoring the Nivea Cup soccer match in Qingpu District to promote public physical exercise and support the development of sports.
Corporate Governance
Governance Organizational and Mechanism:
Beiersdorf China adheres to the localized development model of "long-termism" for foreign companies in China, actively responding to government policies, insisting on quality, and firmly believing in the market. At the same time, the company has set up innovative business units (BU), encouraging new forces to join in the transformation and iteration of the core business.
The company strictly requires each employee to complete a set of privacy protection and data security courses to protect the information security of customers and the company.
The company advocates fair competition and actively and strictly enforces the Competition Compliance Guidelines in its interactions with customers and suppliers and when encountering competitors. The company is also committed to ethical and anti-corruption behavior concerning sending gifts, invitations, product samples, and so on, in order to honor the trust of consumers worldwide and its century-old reputation.
In addition, the company has established a "speak up" mechanism to encourage employees to point out operational irregularities and has conducted publicity in office areas and on its website to raise the awareness of employees and stakeholders about the organization's governance and fair business practice strategies.
Innovation Sustainability:
Beiersdorf China focuses on product and governance innovation. The company has set up an R&D and innovation center in Shanghai, with an R&D investment ratio of 5.43%, including skin care research, local consumer research, green packaging innovation, and R&D digital transformation. This is Beiersdorf's second largest innovation center in the world, after the Hamburg headquarters.
Link: https://mp.weixin.qq.com/s/ski2MOKyt0RGsyVoio97- Q
The company insists on integrating sustainable development into product production and corporate management and proposes the strategy of "Care Beyond Skin." More specifically, Beiersdorf China develops environmentally friendly skincare products, integrates carbon neutrality into supply chain management, participates in the National Low-Carbon Day and the 2023 PCT Theme Forum, etc., and practices sustainable development in all aspects such as production, management and industry communication. We practice sustainable development in all aspects and lead the industry in caring for not only the skin of people but also the surface of the Earth.
Extra Points
ESG Verification or Certification:
2022年，拜尔斯道夫中国（妮维雅（上海）有限公司）实现碳中和，详见附件碳中和证书及碳核查报告。
Responsive to or engaged in ESG Initiatives / Standards / Goals:
2022年，拜尔斯道夫中国（妮维雅（上海）有限公司）参与了中国包装联合会批准发布的《包装用转移镀铝纸制品》团体标准的制定。
Other ESG related awards, e.g. TOP ESG Employer:
2023 年，拜尔斯道夫中国（妮维雅（上海）有限公司）获批上海市 2023 年度第一批工业 通信业碳管理试点企业。
获得 2022 年雇主品牌创意大奖之最佳校园项目奖，2022 年雇主品牌创意大赛之最佳社会 责任奖。2022 年获得 CSR CHINA TOP100 年度最佳责任企业品牌，CSR CHINA 支援服务年度 优秀项目。
