Henkel sees 2022 sustainability successes, sets 2023 goals

DUSSELDORF, Germany—Citing advancements in climate protection, social engagement and gender parity, Henkel published its 32nd sustainability report March 7.The challenges have been many over the last several years, but despite the high-stakes hurdles, Henkel said it has been able to reduce its CO2 emissions, increase the share of renewable energy it uses and boost the percentage of women in the C-suite at the adhesive, sealant and coatings provider.

"I cannot recall a year in the recent past in which the overall business environment was so challenging for our company," said Henkel CEO Carsten Knobel, CEO at Henkel. "The war in Ukraine has deeply shaken us and has far-reaching consequences. It has shaped the economic environment, particularly the energy crisis and higher raw material prices.

"But it is precisely in such difficult times that it is even more important to focus on sustainability and live up to our responsibilities toward the environment and society."

Knobel thanked the 50,000 Henkel employees around the world for their "strong commitment and dedication."

Highlighting the sustainability report is a 55-percent reduction in CO2 per ton of product (in 2022) for Henkel, as well as an increase in the share of renewable electricity to 70 percent.

By 2030, Henkel said it aims to achieve a climate-positive carbon footprint and source 100 percent of its production electricity from renewable sources.

Henkel reported that it has increased its use of recyclable and reusable packaging, and has instituted a "solidarity program" whereby $6.35 million per year is funneled to victims of Russia's war in Ukraine.

Henkel also has increased the percentage of women in management positions (to nearly 39 percent in 2022) and rolled out "Sustainability Pioneers," an employee engagement program.

"In 2022, we took a significant step toward our goal of achieving a climate-positive production by 2030 by further expanding our use of renewable energy," said Sylvie Nicol, member of the Henkel Management Board and director of human resources and sustainability. "We were also able to make further progress on gender parity. We are fully committed to further accelerating and stepping up our efforts with concrete programs and actions to leverage the full potential of our diversity."

In the communities in which it exists, Henkel has struck up energy utility cooperatives, such as construction of two new photovoltaic plants in Spain.

"This will ensure the supply of renewable energy to Henkel's European sites in the amount of around 200 GWh per year," the company said.

As Henkel does a majority of its sales in the consumer goods space, the company said it will seek to produce 100 percent of its packaging materials from recyclable and reused materials by 2025.

Henkel also will look to grow the share of recycled plastic content in its consumer goods packaging. In 2022, this share was around 16 percent, according to Henkel.

As for protection of natural resources, Henkel reported that it worked to procure sustainable raw materials through dependable strategic suppliers.

"In 2022, for example, Henkel was able to increase the traceability rate for palm-based raw materials back to the mill from 84 to 89 percent compared to the previous year," the company said.

Henkel's three strongest brands are Loctite, Persil and Schwarzkopf. In 2022, Henkel reported sales of more than $23.3 billion and adjusted operating profit of around $2.4 billion.