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Sustainability Strategy

Commitment to leadership in sustainability is one of Henkel’s corporate values. Maintaining a balance between economic success, protection of the environment, and social responsibility has been fundamental to its corporate culture for decades. As sustainability leader, Henkel aims to pioneer new solutions for sustainable development while continuing to shape its business responsibly and increase its economic success. This ambition encompasses all of the company’s activities and is underpinned by about 50,000 employees around the world, who have firmly embraced the principles of sustainable development in their daily work and think and act accordingly.

Sustainability Strategy 2030: Achieving more with less

The world is facing immense challenges: The global human footprint is already greater today than the planet’s resources can bear. By the year 2050, the world’s population is expected to grow to 9 billion. The accompanying acceleration in global economic activity will lead to rising consumption and resource depletion. Competition for the available resources will thus intensify in the coming decades. Since sacrificing quality of life and consumption is not a realistic solution, Henkel has adopted the Vision 2050 of the World Business Council for Sustainable Development as the basis of its strategy: “In 2050, 9 billion people live well and within the resource limits of the planet.” This means helping people to live well by generating value while using less resources and causing less emissions.

Therefore, Henkel’s sustainability strategy centers on the idea of “achieving more with less” while concentrating its sustainability activities on six focal areas: “Performance,” “Social Progress,” “Energy and Climate,” “Materials and Waste,” “Water and Wastewater” as well as “Safety and Health.” They reflect the challenges of sustainable development as they relate to Henkel’s operations. Henkel wants to create more value – for its customers and consumers, for the communities it operates in, and for the company – while reducing its ecological foot-print at the same time. To accomplish this, new innovations, products and technologies are needed that can enhance quality of life while using less resources. Building on decades of experience in sustainable development, Henkel aims to work together with its suppliers, customers, and consumers to develop viable solutions for the future.

Henkel’s goal for 2030: Triple our efficiency

Until 2030, Henkel aims to triple the value the company creates through its business operations in relation to their ecological footprint. Henkel calls this ambition of becoming three times more efficient “Factor 3.” One way to achieve this is to triple the value Henkel creates while leaving the footprint at the same level. Or Henkel can reduce the ecological footprint to one third of today’s level, achieving “Factor 3” improvement in efficiency by delivering the same value. In most cases, Henkel will approach this from both sides: reducing the resource consumption and at the same time increasing the value.

To reach this goal, Henkel will have to improve its efficiency by an average of 5 to 6 percent each year. For the five years from 2011 to 2015, Henkel had set itself concrete interim targets aiming to increase efficiency by 30 percent. These targets have been achieved. With the 20-year goal in mind, the company has set new interim targets for its focal areas for 2020. According to this, Henkel intends to improve the relationship between the value it creates and its environmental footprint by 75 percent overall (relative to the base year 2010) by the end of 2020.

Sustainability focal areas with targets

Henkel sustainability focal areas and targets until 2020

Henkel’s approach for sustainable business processes

In order to successfully establish Henkel’s strategy and reach its goals, both of these dimensions must be ever-present in the minds and day-to-day actions of about 50,000 employees and mirrored in the company’s business processes. To successfully implement our strategy and reach our targets, we rely on our products, cooperation with our partners, and the dedication of our people.

Henkel’s products deliver more value for its customers and consumers. Henkel achieves this through innovative solutions and through products that offer better performance with a smaller footprint, thus saving resources and reducing other negative environmental impacts.

Partners are key to driving sustainability along the value chains. Henkel wants to further integrate its suppliers, consumers and industrial partners. At the same time, Henkel amongst other things helps its customers and consumers to reduce their own environmental footprint. To do this, Henkel collaborates with selected suppliers, so that they can supply the needed raw materials that have an improved ecological footprint.

The people at Henkel make the difference – through their dedication, skills and knowledge. They make their own contributions to sustainable development, in their day-to-day business and in their local communities. They interface with customers and consumers and make innovation possible.

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25/02/16

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Henkel Sustainability Strategy 2030

Achieving more with less is the goal of Henkel's sustainability strategy.

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