Henkel has set ambitious sustainability goals, including what you call Factor 3a threefold increase in efficiency by 2030. How different is it to be a CEO in 2021 than it was back then? He will be the first Thursday's Thought Leader Series speaker since 2019. . for 32 years and has four kids. Everything from how you interact in political issues to how well you take care of your employees, diversity and inclusion. Advisory Council, serves on the Nestl board alongside Rrsted and was instrumental He pushes his employees to success; it is not just about paying them. But, for example, if China is going to be one of our three most important global markets in 2015, do we have people on the ground who can really get things done? Speed is the challenge, and the key question is, how can we as a global company simplify our operations with a strong IT focus? Kasper Rorsted: Large, international corporations tend to become complex organizations, which makes them inflexible. We do not allow anyone to hide behind good business results but fail on their leadership responsibility. Was it a kind of one-man roadshow? The company employs And he's very keen also to push this innovation along with us. Im very honored to run this company. In addition, the entire Henkel Management Board knows our top 300 or 400 people personally and knows where in the world they are working. Egon Zehnder: You just said that it was an intellectual challenge that brought you to Henkel. The Muma College of Business Thought Leader Series began in 2018 to attract nationally And when we looked upon Allbirds, you know, they've done been doing a great job on certain elements of innovation, we can bring the footwear expertise into it, which they probably had to a lesser extent. My father was a professor of economics and prized his intellectual freedom above all else. Our guiding principle is that we treat everyone fairly, but not everyone the same. He works closely with numerous family entrepreneurs and management on, Intergovernmental & Multilateral Organizations, leadership team throughout the entire organization. A January 2020 profile by the German newspaper Bild offered some interesting tidbits into his routine. Not everybody in Europe, you know, liked the political direction for many years in the U.S. You know, right now there's tension in China. If the internal processes dont align, if we arent offering our young people the right development opportunities regardless of their gender, then a quota wont fix the problem. Not only on diversity, which I have been vocal on I would say since 2004. Egon Zehnder: What is the biggest challenge you are facing today? And I have similar views about women in management positions. than 800 patents with most innovations inspired by an athletes needs. make certain that you correct the mistakes, he said. We point out, for example, that anyone can go to Harvard if they are a top achiever but first they have to reach that level. Everything here exudes tradition, dignity, and a spirit that seems to draw its strength from the stillness. So that has changed. If you look from an investor standpoint, we've also changed one of our LTI long term incentive components are built around ESG. Over time consumers will want it and I think you need the choice of both right now and that's what we're giving. The following is the unofficial transcript of a CNBC interview with Adidas CEO Kasper Rorsted from the CNBC Evolve Global Summit, which took place today, Wednesday, June 16th. In the meantime even the traditionalists here at the Dsseldorf consumer goods company happily overlook such breaches of protocol. Where do individual employees currently stand in terms of performance, and where do we see their potential? Kasper Rorsted: , am convinced that a visible and accessible leadership style is most e ective My door is open; , encourage colleagues to call me directly Our employees know who , am and what ,m doing , eat with employees in our canteens whenever , am traveling or here at headTuarters <ou cannot run a global company We are very successful there. Toyota's Leadership Style: Respect and Relationships Kasper Rrsted to provide business advice at Thought Leader Series Rorsted: Well Sara, I think that this is part of being a global CEO. In recent years, the 137-year-old company has fared wellin large part by dramatically boosting its presence in emerging markets, which today account for 45 percent of its global revenues of 16.5 billion. The news comes as a shock, especially considering that Rorsted had signed an extension to remain CEO until 2026 on top of his leadership leading to 5x growth in the North American market, that is until the Covid-19 pandemic hit the scene. Eisen: Well, that's why you are a great guest to talk about this subject. How do we want to be positioned then? Since becoming CEO, youve significantly reduced the number of Henkels brands. So the workshops were always moderated by the immediate supervisor, who in the end is responsible for implementing the measures. Adidas has announced that Kasper Rorsted will step down from his role as chief executive in 2023. But then facing boycotts and backlash from Chinese media and Chinese consumers. This also gave us the courage to stick to our goals and decisions even when things got tough. The innovation you mentioned is a remarkable example of targeted customer-relationship management. And I think in the world of political correctness, I think it is important that we have people that have different opinions for different reasons. So he or she speaks on behalf of the company. Egon Zehnder: Where does this liberal-minded approach come from? Kasper Rorsted is the personification of a new dynamic, at home in the transparency and modernity of the building that houses the Laundry & Home Care business sector and where our meeting takes place. Doesnt the substance play a major role as well? He also You know, we said what we're going to do and we executed that extremely diligently since last summer when we following the Floyd killing in Minneapolis. recognized speakers, innovators, idea generators, entrepreneurs, philanthropists, We are actually one of the most diversified companies in the world if you look upon the share of women, the share of nationalities. So, I do think that we are getting the credit. In that respect, too, we are leading the way among DAX-listed corporations: the share of women in management positions at Henkel is around 31 percent and has grown an average of one percentage point annually in recent years. Most people want to play for the winning team, want to be personally successful, but they also want to have a certain amount of support. McKinsey: Is there anything else youd like to share with our readers? Our employees know who I am and what Im doing. And that will be a challenge in itself. The network's 15 live hours a day of news programming in North America (weekdays from 5:00 a.m. - 8:00 p.m. We put great emphasis on internal promotion and talent development. Kasper Rrsted | Board of Directors | Maersk Rrsted, 60, has been described as a highly successful and competent leader who is empathic, calm and a strategic thinker. It's obviously such an important growth market for you, what 25% of the business, at least. E-Mail Can't Replace Interaction, Says Henkel's Chief - New York Times procurement, IT, and infrastructure services. I think that the scrutiny on companies and CEOs are much greater today. Where do you see Henkel today in this respect, and what challenges are looming on the horizon? In our consumer businesses, products that are less than three years old account for approximately 40 percent of sales. Rrsted said collegiate partnerships such as the one with USF help the company reach our products, and if theyre not wearing them, were building our products wrong, But I do think the most important part is saying do we overall, in the long term align around the same values. We have a results-driven performance culture. And who is Kasper Rrsted? As a family company it is part of our corporate culture to think and act in the interests of our long-term success. But I do think overall, it's a good thing. Why havent other firms been as successful? 178 nationalities. As one example, our colleagues from Laundry & Home Care developed the idea of supporting employees to become sustainability ambassadors. These ambassadors go out and talk about sustainability to coworkers, suppliers, customers, and students. CNBC also offers content through its vast portfolio of digital products such as: CNBC.com, which provides financial market news and information to CNBC's investor audience; CNBC Make It, a digital destination focused on making you smarter about how you earn, save and spend your money; CNBC Select, a financial site providing content to help users make informed decisions around choosing the right financial products for their lives; CNBC PRO, a premium service that provides in-depth access to Wall Street; a suite of CNBC mobile apps for iOS and Android devices; Amazon Alexa, Google Assistant and Apple Siri voice interfaces; and streaming services including Apple TV, Roku, Amazon Fire TV, Android TV and Samsung Smart TVs. This is only the beginning, but the impact plastic has on our global environment Kasper Rrsted - Facebook in the region with housing, food, clothes, and other basic needs. And also being able to build products that are competitive in the way they do. deal with Adidas. Protecting workers' jobs. Each employee has the responsibility, and each makes a contribution. So I do think that it's important that the industry will and can do this, but somebody's got to take the lead and we want to be the leader in sustainability. You are here as a temporary employee. If we succeed in sustainability or when we also succeed as a business, he said. up next to his 30 other pairs. Adidas is the largest sportwear manufacturer in Europe and is headquartered in Herzogenaurach, Days does countdowns. We respect and are proud of our culture and history because they are an important part of what made Henkel the outstanding company it is today.