Hein Schumacher

An interesting insight into an unfolding supply chain challenge.

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The highest #ROI M&A transactions in the #FMCG industry over the last decade share four key traits: i) Mid-sized assets ($0.5-6bn EV): with hence a proven business model yet with plenty of growth headroom ii) US-based assets: often positive payback on M&A guaranteed if scale-up successfully nationally. US-assets tend to travel better than assets acquired in other regions (although not an absolute guarantee of international success) iii) Mostly acquirers' with the right category expertise and/ or the right GTM capabilities: that is the case for all (except in some extent for GenMills with Blue). No 100% digital assets (e.g. DTC pure-players) are part of this list iv) The majority of those transactions were completed by frequent acquirers demonstrating one more time the importance to acquire frequently assets both to spread risk but also to develop M&A capabilities across the entire cycle (from due diligences through integration to value creation case delivery) To read our full perspective: FMCG CEOs: M&A Q1 2024 In Review - A New Bottom & Four Reinforcing Trends 𝗟𝗶𝗻𝗸 𝘁𝗼 𝘁𝗵𝗲 𝗳𝘂𝗹𝗹 𝗽𝘂𝗯𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻: https://lnkd.in/efD5RNWX 𝗧𝗼 𝗴𝗲𝘁 𝘁𝗵𝗲 𝗰𝗼𝗿𝗿𝗲𝘀𝗽𝗼𝗻𝗱𝗶𝗻𝗴 𝗱𝗲𝗰𝗸, 𝗽𝗹 𝗹𝗲𝗮𝘃𝗲 𝘆𝗼𝘂𝗿 𝗻𝗮𝗺𝗲 𝗶𝗻 𝗰𝗼𝗺𝗺𝗲𝗻𝘁 𝗧𝗼 𝗴𝗲𝘁 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀, 𝗳𝗼𝗹𝗹𝗼𝘄 𝘂𝘀/ 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝗼𝘂𝗿 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢𝘀 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿: https://lnkd.in/ea4gy65y #strategy #mergersandacquisitions #fmcg 

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Raising a price in the #competitive markets is not easy. But Beyond a point, organisation needs to balance lean operations and optimised costs, once it starts hitting bottomline, it becomes inevitable to work on prices. There needs to be a continuous watch on prices and consequences.

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CPG industry trends in 2024: Rescuing the decade | McKinsey Megatrends impacting CPG - the highlights of which we know but - but how to deal with them is the question - interesting overview: 1) Population growth stagnation - target, focus and personalization - profitable growth pockets M&A&D work with entities that can identify the sting in the tail of too large portfolios and identify new opps - predictive AI to help generate those insights. Reinventing brand building and marketing, scaling commercial excellence across business. 2)Crop failures increasingly frequent - volatility mitigation supply chain is key. This multi-enterprise ecosystem at its core must be collaborative, connected, responsive, and innovation centric, most importantly sustainable in this green century 3)Better for you better for the planet - how we embrace and recognize the natural world and its biomass is good for the planet and good for you. 4) Prescription weight loss drugs coming - lifestyle change and healthier nutritional choices exist - an option play but not the norm.

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🌍 Atlantic Grupa: Leading the Way in ESG Excellence Across the Region! 🌟 We are proud to share that Atlantic Grupa has been honored with several prestigious ESG awards across Slovenia, Serbia, Bosnia and Herzegovina, and Croatia, reaffirming our unwavering commitment to Environmental, Social, and Governance (ESG) principles. 🏆 Slovenia’s ESG Champion 2024 Awarded by a panel of experts, this recognition highlights our dedication across all ESG pillars. Competing against 22 leading companies, Atlantic Grupa emerged as the top choice. 🏆 ESG Leaders Awards in Serbia At PwC’s inaugural ESG Leaders competition, we were recognized in: - Transition to Circular Economy - Educational Program These awards underline our focus on sustainable innovation and responsible business practices. 🏆 Go Green Star in Bosnia and Herzegovina Argeta received the Go Green Star Award for Responsible Consumption and Production, showcasing the success of our #SpreadGood program and sustainable initiatives. 🏆 AmCham Croatia ESG Champion 2024 This recognition celebrates our cultural and practical dedication to ESG goals and transparency in Croatia. We extend our gratitude to the awarding organizations and congratulate all the other winners. Together, we’re driving positive change and building a sustainable future! #AtlanticGrupa #ESGLeadership #Sustainability #CircularEconomy #ResponsibleBusiness

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Sustainability is central to our Corporate Governance principles. The path is clear.

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This #EarthWeek and every day, Colgate-Palmolive remains unwavering in its commitment to drive social impact, help millions of homes and preserve our environment. This commitment is vital to our purpose to reimagine a healthier future for all people, their pets and our planet. As we celebrate Earth Week, I am proud to highlight some of our achievements that contribute to a more sustainable future and foster change in our communities: - Pioneering a first-of-its-kind recyclable toothpaste tube. Recently Stina Inc. announced that 90% of toothpaste tubes in the US now have designs compatible with the color HDPE bottle stream, a critical design milestone in the US on the journey to recyclability for plastic squeeze tubes. - Colgate-Palmolive has 36 TRUE certifications for zero waste in 21 countries across five continents. - Through our Bright Smiles, Bright Futures initiative, we've reached 1.7 billion children and their families in over 100 countries since 1991. - Hill's Pet Nutrition's work with NBCUniversal Local’s Clear the Shelters has helped facilitate over one million pet adoptions since its inception in 2015. These milestones reflect our ongoing journey towards reimagining a healthier world. Learn more about our commitment to the environment: https://lnkd.in/e3hsPhXA #Sustainability #EarthDay2024 

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I was once skeptical about personality assessments. But a single test called Riso-Hudson Enneagram Type Indicator (RHETI) changed my perspective. As a CFO, I always believed in the power of hard data. Yet, the most transformative insights came not from balance sheets but from a better understanding of myself. Let me share why this tool became my secret weapon: In my early years, I struggled with team dynamics. I was great with numbers but not so much with people. A personality assessment revealed my strengths and weaknesses in communication. Suddenly, I saw patterns. ↳ I realized why some meetings felt like a breeze while others turned into a storm. With newfound selfawareness, I could adjust my approach. My leadership style evolved. I became more empathetic, more approachable. The impact? My team flourished. Projects ran smoother. Deadlines met effortlessly. And it wasn’t just about work. I became more resilient to stress. I understood my triggers and developed strategies to manage them. Today, I encourage every finance professional to dive deeper into their psyche. Because numbers are essential, but understanding yourself is priceless. Have you ever taken a personality assessment? #FinanceLeadership #CareerDevelopment #TeamSuccess #CFOJourney

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I was thrilled to share my perspectives on the role of the CFO and my leadership journey so far, including as CFO of Haleon, as part of a recent interview with Criticaleye for its CFO Series. Within the profile piece, I share my experiences and insights, including some of the challenges when assuming the role of Haleon’s CFO: “The biggest thing was hiring expertise for the things I didn’t know. That comes with being very clear and authentic around what I know and what I don’t know.” I also explore what’s required of a CFO today, with the remit and expectations of the role evolving as businesses navigate an increasingly complex landscape: “You need to have this ability to be a strategist on one day, and then the next day, go into the nth degree of detail to ensure there isn’t a control issue, and then the next day, it’s about compliance. So how do you jump between governance, strategy and all the other faces of a CFO’s role?” I hope you find the article insightful and that it resonates with you as you continue on your own professional journey.   #FinanceLeadership #CFOJourney #FinanceInnovation #LeadershipInsights

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CEO Global Group Wellable's findings underscore the critical link between employee engagement and organizational success. When employees are highly engaged, they are 87% less likely to leave their employer, highlighting the strong retention benefits. This engagement fosters loyalty and reduces turnover costs, contributing to a more stable and experienced workforce. Moreover, companies with the highest employee engagement rates see a 21% increase in profitability. Engaged employees are more productive, motivated, and committed to their work, leading to higher efficiency, better customer service, and ultimately, improved financial performance. In essence, fostering a culture of engagement not only boosts employee satisfaction but also drives substantial business growth. #CAROHITUPADHYAYA

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𝗔𝗻𝗼𝘁𝗵𝗲𝗿 𝗱𝗼𝘂𝗯𝗹𝗲 (𝘁𝗼𝗽-/𝗯𝗼𝘁𝘁𝗼𝗺-𝗹𝗶𝗻𝗲) 𝗯𝗲𝗮𝘁 𝘄𝗶𝘁𝗵 𝗿𝗮𝗶𝘀𝗲𝗱 𝗴𝘂𝗶𝗱𝗮𝗻𝗰𝗲 𝗳𝗼𝗿 Colgate-Palmolive 𝗔 𝗴𝗼𝗼𝗱 𝗶𝗹𝗹𝘂𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝘄𝗵𝗮𝘁 𝗶𝘀 𝗮 𝘃𝗶𝗿𝘁𝘂𝗼𝘂𝘀 𝘁𝗼𝗽𝗹𝗶𝗻𝗲 𝗴𝗿𝗼𝘄𝘁𝗵, 𝗺𝗮𝗿𝗴𝗶𝗻 𝗶𝗺𝗽𝗿𝗼𝘃𝗲𝗺𝗲𝗻𝘁, 𝗿𝗲𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁, 𝗯𝗮𝗹𝗮𝗻𝗰𝗲𝗱 𝗽𝗿𝗼𝗳𝗶𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗶𝗺𝗽𝗿𝗼𝘃𝗲𝗺𝗲𝗻𝘁 𝗳𝗹𝘆𝘄𝗵𝗲𝗲𝗹 𝗦𝘁𝗼𝗰𝗸 𝗽𝗿𝗶𝗰𝗲 𝗶𝘀 𝗻𝗼𝘄 𝘂𝗽 𝟮𝟰% 𝗬𝗧𝗗 A lot to like: • Balanced volume & pricing growth testimony of Colpal strong portfolio, pricing power & balanced reinvestment choices • Continuous gross margin expansion enabling both marketing reinvestment (+18% in the quarter!) & balanced profitability improvement • Broad-based growth (although Hill's volume development should be watched in the upcoming quarters) Noel Wallace, Colgate Palmolive CEO: “This is our fourth consecutive quarter delivering gross margin expansion and double-digit growth in operating profit, net income and earnings per share. This combination of sales growth and operating leverage allowed us to continue to invest for the long-term health of our business, with an 18% increase in advertising in the quarter. The strong levels of investment should continue in the balance of the year as we focus on building brand health and scaling the capabilities needed to drive growth in both the short and long term. Our strong results this quarter and in the first half of the year add to our confidence that we are executing the right strategies to deliver on our increased 2024 organic sales and Base Business earnings growth expectations, drive cash flow and generate consistent, compounded earnings per share growth.” Colgate-Palmolive H1/ Q2 FY24 H1 FY24 • NR: $10,124m • OSG: +9.4%; Volume: +3.1%, Price/ mix: +6.3% • GM%: 60.3%; +300 bps vs H1 FY23 • Advertising Cost: 13.6%; +131bps vs H1 FY23 • Adj. OP%: 21.8%; +170 bps vs H1 FY23 Results by Region • North America: $2bn NR; OSG: +3.3% (Volume: +4.4%, Price/ mix: -1.1%) • Latin America: $2.5 bn NR; OSG: +22.2% (Volume: +5.8%, Price/ mix: +16.4%) • Europe: $1.4m NR; OSG: +6.8% (Volume: +4.2%, Price/ mix: +2.7%) • Asia Pacific: $1.4m NR; OSG: +3.2% (Volume: +0.1%, Price/ mix: +3.1%) • Africa/ Eurasia: $549m NR; OSG: +16.3% (Volume: +6.1%, Price/ mix: 10.2%) • Hills (Pet Nutrition): $2.2bn NR; OSG: +5.2% (Volume: -0.7%, Price/ mix: +5.9%) • Beats analysts’ consensus for revenue and EPS Results by Region • Raised EPS growth guidance: 8%-11% (vs mid to high-single-digit previously) 𝗧𝗼 𝗴𝗲𝘁 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀, 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝗼𝘂𝗿 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿: https://lnkd.in/ea4gy65y #fmcg #cpg https://lnkd.in/e-etz_68 The Coca-Cola Company Procter & Gamble The Clorox Company Henkel Reckitt McBride Reckitt Haleon Nestlé Unilever Kenvue Danone PepsiCo Mondelēz International

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Mondelēz International: effective PPA & disciplined execution pay off as MDLZ beats both top and bottom-line consensus with broad-based growth across all markets In the words of MDLZ CEO the key drivers of outperformance: - accelerate our core business and strategically reshaping our portfolio (Evrith...) - executing with excellence across categories, markets, and brands - reinvesting behind brands - driving distribution - expanding our capabilities - maintaining cost discipline 𝐐𝟑 𝐅𝐘𝟐𝟎𝟐𝟒 • NR: $ 9,204m • OSG: +5.4%; Volume: +0.3%, Price/ mix: +5.1% • GM%: 32.6%; -610 bps vs Q3 FY23 • Adj. OP%: 20.9%; +270 bps vs Q3 FY23 • Beats analysts’ consensus for revenue and EPS 𝐑𝐞𝐬𝐮𝐥𝐭𝐬 𝐛𝐲 𝐑𝐞𝐠𝐢𝐨𝐧𝐬 • Latin America: $1,204m NR; OSG: +2%; Vol: -3.9%, Price/ mix: +5.9% • Asia, Middle East, & Africa: $1,851m NR; OSG: 5.8%; Vol: +0.7%, Price/ mix: +5.1% • Europe: $3,323m NR; OSG: +8.1%; Vol: +0.5%, Price/ mix: +7.6% • North America: $2,826m NR; OSG: +3.7%; Vol: +1.7%, Price/ mix: +2.0% 𝐑𝐞𝐬𝐮𝐥𝐭𝐬 𝐛𝐲 𝐌𝐚𝐫𝐤𝐞𝐭 𝐓𝐲𝐩𝐞𝐬: • Emerging Markets: $ 3,530m NR; OSG: +4.9%; Vol: -1.0%, Price/ mix: +5.9% • Developed Markets: $ 5,674m NR; OSG: +5.6%; Vol: +1.0%, Price/ mix: +4.6% Fiscal 2024 Outlook – Reaffirms • Organic Net Revenue growth: to be at the upper end of 3-5% • Adjusted EPS growth: high single-digit on a constant currency basis based 𝗧𝗼 𝗴𝗲𝘁 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀, 𝗳𝗼𝗹𝗹𝗼𝘄 𝘂𝘀 & 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝗼𝘂𝗿 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿: https://lnkd.in/ea4gy65y 𝗔𝗯𝗼𝘂𝘁 𝘂𝘀: Frederic Fernandez & Associates FF&A solves the most complex strategic problems of the world's largest FMCG companies across Corporate Strategy, Organic Growth, Digital RTM (eCommerce, DTC, EB2B), and M&A. 14 out of the world's 20 largest FMCG companies are repeat Clients (more on FF&A website: https://lnkd.in/dc6jY4Qp) #fmcg #cpg

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For anyone in Dubai, this is a great opportunity by London Business School. Prof Jérémie Gallien is incredible and a global thought leader in the field. I benefited immensely from being in his class earlier this year. In the context of global supply chain disruptions facing us routinely, this is a timely and relevant master class on business resilience. Great going Dr. Roshanak Bassiri Gharb and others. Thanks Amy Anis, Paul Drew! #LondonBusinessSchool, #Businesstesillience, #supplychainresillience.

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Recommend following this one as an example of a brand designed for what’s next. 75% of calories are from protein. Half the weight of the bar is protein. In a share driven, economically challenged environment this level of efficiency will win. The density gives shoppers and retailers what they want with less diesel, packaging, water, shelf space and commodity use. Built for speed. Unsurprising coming from Peter Rahal of Rx, the name is great and the design is modern. Of course it needs to taste good, but RXBAR proved that you just have to taste good enough. One to watch!

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Our latest 2-year cross-sectional risk marker study on users of our leading heated tobacco product shows positive results compared with smokers. The study found that, compared with current smokers, subjects who had switched from cigarettes to our leading heated tobacco product for at least 2 years showed favorable differences in nine biomarkers of potential harm and similar to those observed in former smokers. Results also provide information on the impact of the use of our leading heated tobacco product on cardiovascular function. Analyses of the full study dataset are ongoing, and additional data will be presented at upcoming scientific meetings and submitted to peer-reviewed scientific & medical journals. #ClinicalResearch #RiskMarkerStudy #CardiovascularResearch #ClinicalData

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🔍 Ensuring excellence in your FMCG manufacturing processes starts with asking the right questions. Are you ready to assess and enhance your risk management strategies? 🚀🌟 Apply to join the Inner Circle of Visionary CEO’s 🌟🚀 Our community is a safe place to Network and Elevate your Strategic thinking and Leadership skills. Seize the Opportunity! Check out the About section in my bio for more details. Learn. Unlearn. Relearn

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It was brilliant to do a fireside chat at the FT Future of Retail event last week in London. Many thanks to Laura Onita for the invite! Laura and I covered a lot of ground, including retail leadership qualities, international expansion strategies and the challenges facing retailers today. Too much to write about here but here’s two takeaways to give a flavour for the conversation: Does the “global consumer” actually exist? More yes than no 😊 While each market is shaped by different cultural, economic, and political forces, I firmly believe that people around the world are more alike than they are different. They have similar hopes, fears and dreams and when they are shopping, everyone wants quality products at affordable prices for their families. It’s our job as retailers to deliver on that wherever we operate. Will AI reinvent retail? It will certainly transform it! Ken Murphy, Tesco’s CEO, commented that the effect will be “seismic.” While we’re already seeing many advancements, it’s clear to me that we’re only at the beginning of this journey and keeping the customer at the heart of development will be ever more critical. Customers want personalisation, simplicity and ease – and AI can help transform the delivery of that, BUT, they also want their data to be safe, for the ‘help’ to never cross into creepiness and to have options about how their data is used. I love the question Walmart asked when developing new capabilities “would you be happy if this was you?” - such a simple way to think about it. My overall takeaway from the day and the future of retail? No other industry reaches as many people globally as retail does. It’s a privilege to earn the trust of millions of customers, to be part of their everyday lives, and to contribute to their celebrations and milestones. This industry continues to be dynamic, impactful, and full of opportunities. I’m always inspired by incredible conversations about retail and it’s a reminder of the remarkable role it plays in the world! #leadership #retail #AI #futureofretail #FTRetail

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"Two-thirds of surveyed directors say the complexity of their boards’ role and responsibilities has increased in the past two years. What’s more, many of the topics on today’s board agenda, from generative AI . . . and cybersecurity to the net-zero transition, were rarely discussed ten years ago. Meanwhile, directors are still responsible for the general oversight and strategic direction–setting aspects of their role.”  McKinsey & Company’s latest Global Survey on boards found that the largest share (59%) of directors say they’re managing the increased complexity by strengthening collaboration between the board and the management team. But while most board members surveyed agreed collaboration was important, only 1/3 of respondents (directors and executives) said their boards and CEOs do it effectively.  Effective collaborators were twice as likely as others to say their boards have a big impact on long-term value creation and that they were more effective on a range of important board jobs, including strategy, talent, culture, and risk management.  McKinsey offers up three ways in which effective collaborators are different from other boards (and which is likely true for any effective team working):  - Efficient and effective board processes: Effective collaborators are 2.4x more likely to say their meetings are well run and 1.8x more likely to say that new board members are sufficiently onboarded. Other ways to free up time to focus on value-added activities: Review/realign responsibilities, create processes for decision making, and align agenda items to ensure board and management are focused on the same things. - Board-CEO communication: Boards that communicate well with their CEO’s are able to provide more effective support. They’re better informed about the organization so they can respond with agility to change/crises. They’re more aligned on the board agenda, roles, and responsibilities, so directors’ time is well spent. Effective collaborators spend the same share of time as others do on management team communication, so it’s about how--frequent, concise, and transparently; through multiple channels--rather than how much, time is spent. - Culture of trust and respect in the boardroom: Effective collaborators are more likely to create a strong culture (87% vs. 44%), and spend time on team building—spending informal time together, sharing meals, one-on-one time, and trips to company outposts. These better enable them to have better more open, constructive discussions and take quicker action when needed. #boardofdirectors #CEO #collaboration #communication #culture #productivity #complexity #teamwork

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Having put sustainability at the heart of our business for decades, we have learned from experience that to make progress on the big, complex issues we’re all facing, we need to act with greater focus. As Unilever looks to the future, we believe we have an opportunity to define a new, third era for sustainable business leadership. The first era – over a decade ago – was predominantly about ringing the alarm and setting long-term ambitions. The second was about further embedding and integrating sustainability across business and value chains. The third, to us, is all about accelerating delivery, with greater impact, by making sustainability progress integral to business performance. It’s something the world needs, and something stakeholders – from investors to consumers – expect. As a result, we’ve spent many months thinking about how we evolve our approach. And it comes down to three key shifts we intend to take. - To be more focused in allocating our resources towards our biggest sustainability priorities across climate, nature, plastics and livelihoods – for which we recently updated our public commitments, and which are fully embedded in our Growth Action Plan. - To be more urgent in driving actions towards our long-term ambitions. - To be more systemic in our advocacy to address the enablers and blockers of progress outside of our direct control. Our updated commitments are very stretching, but they are also intentionally and, unashamedly, realistic. We are determined that Unilever will deliver against them, just as we are determined to perform against our financial goals. We want to set sustainability ambitions which are credible, which we believe we can deliver against, and which have real positive impact. At Unilever we want to do fewer things and with greater impact. Our refreshed sustainability agenda – with more focus, urgency and systemic change – is no exception: https://lnkd.in/eUPwXPEx

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