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Corporate Reporting 2015

Henkel Corporate Reporting 2015

More Henkel Corporate Reporting 2015

Sustainability Report 2015

Henkel Sustainability Report 2015

Facts and Figures 2015

Henkel Facts and Figures 2015

Corporate Report 2015

Henkel Corporate Report 2015

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Sustainability Report 2015

GRI index

We prepared our Sustainability Report in alignment with the Global Reporting Initiative’s (GRI) G4 Sustainability Reporting Guidelines. Our GRI content index indicates how our reporting meets GRI standards. The required Information is available on the linked pages and in the audited parts of the Annual Report and print version of the Sustainability Report. Where an indicator is not completely covered by the disclosures, we have included the relevant data directly in the Index or have labelled the gaps as “omissions”. Henkel transparently reports all information and data that are ascertainable and relevant from a management perspective.

For the disclosures marked with “√“ , KPMG AG Wirtschaftsprüfungsgesellschaft performed a limited assurance engagement. The independent assurance report by KPMG can be found
here.

GENERAL STANDARD DISCLOSURES

STRATEGY AND ANALYSIS

G4-1 Statement from the most senior decision-maker of the organization

Sustainability Report 2015 (S. 2-3)
Annual Report 2015 (S. 2-11)
Foreword

 

G4-2 Description of key impacts, risks, and opportunities

Sustainability Report 2015 (S. 6-9)
Annual Report 2015 (S. 24-27, S. 106-113)
Sustainability strategy and management
Our sustainability strategy at a glance
Focal areas
Risks and opportunities report

 
ORGANIZATIONAL PROFILE

G4-3 Name of the organization

Henkel AG & Co. KGaA

Sustainability Report 2015 (rear cover)
Annual Report 2015 (rear cover)

 

G4-4 Primary brands, products, and services

Sustainability Report 2015 (S. 26-43)
Annual Report 2015 (S. 90-101)
Business units
Brands & Businesses

 

G4-5 Location of the organization’s headquarters

Henkel AG & Co. KGaA
Henkelstraße 67
40589 Düsseldorf
Germany

Sustainability Report 2015 (rear cover)
Annual Report 2015 (rear cover)

 

G4-6 Countries where the organization has significant operations

Sustainability Report 2015 (inside front cover, S. 45)
Overview of production sites

 

G4-7 Nature of ownership and legal form

Sustainability Report 2015 (rear cover)
Annual Report 2015 (S. 31)
Legal form / Special statutory features of Henkel AG & Co. KGaA

 

G4-8 Markets served

Annual Report 2015 (S. 90-101, S. 124)
Henkel around the world: Regional centers

 

G4-9 Scale of the organization

The quantity of products provided amounts to 8.79 million tons, 90 percent of which are produced in our own facilities. The remaining 10 percent are produced by contract manufacturers.

Sustainability Report 2015 (inside front cover, rear cover, S. 19, S. 57)
Annual Report 2015 (S. 52, S. 55, S. 72-73)
Henkel around the world: Regional centers
Overview of production sites
Subcontractors
Economic indicators
Shares and Bonds
International shareholder structure
Net assets

 

G4-10 Total number of employees

Sustainability Report 2015 (S. 58-59)
Annual Report 2015 (S. 76-77)
Employee indicators

G4-11 Percentage of total employees covered by collective bargaining agreements

Sustainability Report 2015 (S. 59)
Employee indicators

G4-12 Organization’s supply chain

Sustainability Report 2015 (S. 14)
Annual Report 2015 (S. 79-80)
Purchasing and supplier management
Procurement

 

G4-13 Significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain

Sustainability Report 2015 (S. 14-18)
Annual Report 2015 (S. 71-73)
Capital expenditures

 

G4-14 Precautionary approach

Sustainability Report 2015 (S. 4-7, S. 18-19, S. 22-25)
Sustainability strategy and management
Sustainability stewardship
Product safety

 

G4-15 Externally developed economic, environmental and social charters, principles, or other initiatives

Sustainability Report 2015 (S. 14-15, S. 31, S. 54)
Associations and international initiatives

 

G4-16 Memberships of associations

Our description of initiatives, industry associations and other organizations in the chapters "Purchasing and supplier management", "Laundry & Home Care" and "Stakeholder dialog" of our report lists the most important examples in the context of sustainability. In addition, our global and regional units are involved in local initiatives and networks.

In 2015, Henkel did not make any payments to associations and interest groups beyond membership fees.

Sustainability Report 2015 (S. 14-15, S. 31, S. 54)
Associations and international initiatives

 
IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES

G4-17 Entities included in the organization’s consolidated financial statements

Sustainability Report 2015 (S. 56, S. 60)
Annual Report 2015 (S. 57)
Indicators
Scope of report
Fundamental principles of the Group

G4-18 Defining the report contents

Sustainability Report 2015 (S. 9, S. 54, S. 60)
Goal for 2030: “Factor 3”
Identification of material issues
Scope of report

G4-19 Material aspects

Sustainability Report 2015 (S. 54)
Identification of material issues

G4-20 Aspect Boundary within the organization

When identifying our material aspects and topics we also defined where within and outside our organization our most significant aspects have an impact. That way we described the boundaries of our material aspects. Impacts are generated where our activities and products significantly influence the environment and society and where external challenges affect our business.

Sustainability Report 2015 (S. 54)

G4-21 Aspect Boundary outside the organization

When identifying our material aspects and topics we also defined where within and outside our organization our most significant aspects have an impact. That way we described the boundaries of our material aspects. Impacts are generated where our activities and products significantly influence the environment and society and where external challenges affect our business.

Sustainability Report 2015 (S. 54)

G4-22 Effect of any restatements of information provided in previous reports

As of this year, we report for the first time according to the GRI G4 standard. To align our reporting with this standard version, we reviewed our material aspects and customized our GRI Content Index accordingly.

Sustainability Report 2015 (S. 9, S. 60)
Management systems
Scope of report

G4-23 Significant changes from previous reporting periods in the Scope and Aspect Boundaries

Reviewing our material aspects resulted in a restructuring and customization of material aspects and topics in our GRI content index. General reporting boundaries have not changed. Environmental and social indicators are based on the principle of management control. There were no significant changes in our basis data from 2010. Therefore, no modifications were necessary.

STAKEHOLDER ENGAGEMENT

G4-24 Stakeholder groups engaged by the organization

Our key stakeholder groups are:

  • Customers
  • Consumers
  • Suppliers
  • Employees
  • Shareholders
  • Local communities
  • Government authorities
  • Associations
  • Nongovernmental organizations
  • Politicians
  • Academia

Sustainability Report 2015 (S. 52)

G4-25 Identification and selection of stakeholders

For Henkel everyone, whether a group or an individual, who is directly or indirectly interested in our company or influences our company is a stakeholder. We are open to the exchange with all our stakeholders. We discuss specific questions in a direct dialog with relevant stakeholders.

Sustainability Report 2015 (S. 52)
Stakeholder dialog
Information exchange

G4-26 Approach to stakeholder engagement

Sustainability Report 2015 (S. 52)
Stakeholder dialog
Information exchange

G4-27 Key topics and concerns that have been raised through stakeholder engagement

Sustainability Report 2015 (S. 52)
Stakeholder dialog
Information exchange

REPORT PROFILE

G4-28 Reporting period

This report covers the period from January 1 to December 31, 2015.

 

G4-29 Date of most recent previous report

The most recent previous sustainability report was published on March 4, 2015.

 

G4-30 Reporting cycle

The reporting cycle is annual.

Sustainability Report 2015 (S. 9, S. 60)

 

G4-31 Contact point for questions

Sustainability Report 2015 (S. 61)
Sustainability Contacts

 

G4-32 GRI Content Index

Our 2014 Sustainability Report applies the core option of the GRI guidelines.

 

G4-33 Assurance

External assurance of the sustainability report was initiated by the Sustainability Council. The outcome of the assurance engagement will be reported to the Sustainability Council.

Sustainability Report 2015 (S. 60)
Scope of report
External assurance

 
GOVERNANCE

G4-34 Governance structure

Sustainability Report 2015 (S. 7, S. 10)
Annual Report 2015 (S. 31-40, S. 63)
Organization for sustainability
Legal form / Special statutory features of Henkel AG & Co. KGaA
Organization

 
ETHICS AND INTEGRITY

G4-56 Values, principles, standards and norms of behavior

Sustainability Report 2015 (S. 10-11)
Annual Report 2015 (S. 63)
Codes and standards
Sustainability strategy 2030

 

SPECIFIC STANDARD DISCLOSURES

ASPECT: MATERIALS & WASTE

G4-DMA Disclosures on management approach

The responsible management of raw materials, and especially the conservation of natural resources and biodiversity, is a prerequisite for sustainability at Henkel. For many decades, we have been using ingredients based on renewable raw materials to optimize the overall characteristics of our products, wherever this is compatible with environmental, economic and social considerations. This way, we want to replace fossil fuel based ingredients in particular. Renewable raw materials are already key ingredients in many of our products, such as soaps, shampoos, glue sticks and wallpapering adhesives. In addition, we are working on increasing the percentage of ingredients based on renewable raw materials - wherever this is possible and reasonable. Regarding the use of palm (kernel) oil in our products, please check the aspect "Renewable palm (kernel) oil".

Waste prevention is also a decisive factor in resource preservation. By 2020, we want to reduce our waste volume by 30 percent per ton of product relative to the base year 2010. Worldwide optimization programs such as the new "Henkel Production System" (HPS), which identifies and eliminates any inefficiency along our value chain, support us with this task. In order to reduce the packaging waste that our customers and consumers generate we develop innovative packaging formats.

Sustainability Report 2015 (inside front cover, S. 8, S. 18, S. 24-25, S. 33, S. 39-40)
Annual Report 2015 (S. 79-80)
Raw materials
Smart packaging solutions
Goal for 2030: “Factor 3”
Worldwide optimization programs
Procurement

TOPIC: MATERIALS CONSUMPTION AND RENEWABLE RAW MATERIALS

G4-EN1 Materials used by weight or volume

Omissions:
No disclosures on total weight or volume of materials that are used to produce and package primary products by renewable and ŸŸnon-renewable materials used but disclosure on percentage of renewable raw materials in key product categories.

Sustainability Report 2015 (S. 25)
Annual Report 2015 (S. 79)
Raw materials
Procurement

 

TOPIC: PACKAGING AND WASTE, RECYCLING

G4-EN23 Total weight of waste by type and disposal method

Sustainability Report 2015 (S. 57)
Environmental indicators

ASPECT: ENERGY & CLIMATE

G4-DMA Disclosures on management approach

The economic, ecological and social consequences of climate change will increasingly give rise to challenges for corporations. Consequently, they are significantly involved in the process of finding and devising efficient solutions. To achieve our efficiency goal "Factor 3" by 2030, we set the interim target to reduce our energy use by 30 percent per ton of product by 2020. The Henkel approach is to first utilize all opportunities for reducing energy consumption and corresponding CO2 emissions in order to prevent greenhouse gas emissions from the outset. In addition to optimizing production processes we focus on creating a competitive edge by developing energy efficient products and technologies. CO2 compensation is not part of our strategy for reducing CO2 emissions.

Omissions:
No disclosures on any country, regional, or industry regulations and policies for emissions.

Sustainability Report 2015 (S. 8, S. 18-19, S. 21-22, S. 27-29, S. 33-35, S. 39-40, S. 42)
Goal for 2030: “Factor 3”
Worldwide optimization programs
Logistics and transport
Sustainability stewardship
Sustainability measurement
Sustainable consumption

G4-EC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change

Omissions:
No disclosures on the costs of specific actions taken to manage the risk or opportunity.

Sustainability Report 2015 (S. 6-9, S. 13, S. 18-19, S. 21)
Sustainability strategy and management
Focal areas
Goal for 2030: “Factor 3”
Worldwide optimization programs
Logistics and transport

 

TOPIC: ENERGY EFFICIENCY IN PRODUCTION

G4-EN3 Energy consumption within the organization

We don't sell energy we generate or feed it back into the grid.

Sustainability Report 2015 (S. 57)
Environmental indicators

G4-EN29 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations

In 2015, Henkel didn't receive any significant fines or non-monetary sanctions for non-compliance with environmental laws and regulations.

 

TOPIC: CO2 REDUCTION UND CO2 FOOTPRINT

G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)

Scope 1 CO2 emissions from direct energy combustion (coal, gas, oil) are determined by applying the emission factors specifically provided by Öko-Institut e.V. to Henkel and which are based on RAINS 7.52.

Sustainability Report 2015 (S. 57)
Operational carbon footprint
Environmental indicators

G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)

Scope 2 CO2 emissions from purchased energy (electricity, steam and district heating) are determined using for the first time the location-based and the market based method (dual reporting).

For the Scope 2 location-based method, the latest available emission factors from the International Energy Agency (IEA) are applied in each reporting period (i.e. CO2 factors published by the IEA in 2015 are applied to determine 2015 Scope 2 emissions).

For the Scope 2 market-based method, Henkel assesses purchased renewable energy against internal quality criteria and applies CO2 emission factors of zero for these amounts of energy. Determination of market-based Scope 2 emission is going to be further refined. As we purchase energy from renewable sources at some Henkel sites, we recorded an emissions value of 306 thousand metric tons in 2015.

Emissions from other greenhouse gases than CO2 account for less than 1 percent of our Scope 1 and 2 emissions and thus not deemed relevant for our business.

Sustainability Report 2015 (S. 57)
Operational carbon footprint
Environmental indicators

G4-EN19 Reduction of greenhouse gas (GHG) emissions

Sustainability Report 2015 (S. 21, S. 27-28, S. 33, S. 36, S. 40, S. 42-43)
Logistics and transport
Smart packaging solutions
Sustainability at Laundry & Home Care
Product examples
Sustainability at Beauty Care
Product examples
Sustainability at Adhesive Technologies
Product examples

G4-EN20 Emissions of ozone-depleting substances (ODS)

Methylene chloride, which is used in paint strippers in Great Britain and in the USA, accounts for most of Henkel’s consumption of chlorinated hydrocarbons.

Environmental indicators

 

G4-EN21 NOX, SOX, and other significant air emissions

Sustainability Report 2015 (S. 57)
Environmental indicators

(for emissions of volatile organic compounds)

G4-EN27 Extent of impact mitigation of environmental impacts of products and services

Sustainability Report 2015 (S. 22-30, S. 32-36, S. 38-43)
Sustainability stewardship
Sustainability measurement
Sustainable consumption
Raw materials
Smart packaging solutions
Logistics and transport
Product examples
Product examples

 

G4-EN32 Percentage of new suppliers that were screened using environmental criteria

In selecting our suppliers and business partners, we also consider their performance in regard to sustainability and environmental criteria. This is based on our globally applicable corporate purchasing standards we defined in 1997 for the first time, our Safety, Health and Environment (SHE) Standards and our new Sustainable Sourcing Policy, which we developed in 2015.

Sustainability Report 2015 (S. 14-17, S. 80-81)
Purchasing and supplier management
What we expect from our business partners
Responsible Supply Chain Process
Initiatives for greater sustainability
Sustainable Sourcing Policy

 

TOPIC: TRANSPORT AND LOGISTICS

G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)

Emissions caused by the transport of products to our customers are determined based on the Cefic Guidelines for Measuring and Managing CO2 Emissions from Freight Transport Operations (2011).

Emissions from business travel are determined using the distance-based method as well as standard conversion factors from Defra (2011).

Sustainability Report 2015 (S. 21, S. 57)
Operational carbon footprint
Environmental indicators

G4-EN30 Significant environmental impacts of transporting products and other goods and materials for the organization’s operations, and transporting members of the workforce

Sustainability Report 2015 (S. 21)
Logistics and transport

 
ASPECT: WATER & WASTE WATER

G4-DMA Disclosures on management approach

The Earth’s water resources are unequally distributed and are threatened by increasing pollution and overuse. For us, therefore, reducing water consumption during the production and use of our products is an important aim. On the way to our 2030 efficiency goal "Factor 3" we set the interim target to use 30 percent less water per unit produced by 2020 - relative to the base year 2010. In order to identify suitable approaches for achieving improvements, we participate in efforts to develop methods for water footprinting. Since many of our products pass into wastewater after use, their composition has been designed so that their use has the least possible impact on the environment. Wastewater from chemical engineering applications is treated using state-of-the-art technology to remove harmful substances and is then disposed of properly.

Sustainability Report 2015 (inside front cover, S. 7-8, S. 12-13, S. 18-19, S. 22-23, S. 34-35)
Goal for 2030: “Factor 3”
Worldwide optimization programs
Product safety
Sustainability measurement

G4-EN8 Total water withdrawal by source

Omissions:
No breakdown of water withdrawal by source.

Sustainability Report 2015 (S. 75)
Environmental indicators

G4-EN22 Total water discharge by quality and destination

Omissions:
No breakdown of water discharge destination, treatment method and planned and unplanned discharges.

Sustainability Report 2015 (S. 57)
Environmental indicators

G4-EN24 Total number and volume of significant spills

In 2015, there were no significant environmental incidents.

Operational incidents at our worldwide production sites

 
ASPECT: HEALTH & SAFETY

G4-DMA Disclosures on management approach

The health and safety of our employees are top priorities for us. Protecting and promoting health helps individual employees keep in good health and thus also improve quality and productivity. Health protection and health promotion are driven ahead at Henkel through a holistic health management program, for which our Health Procedure sets global minimum standards. This includes medical assistance as required, designing of health-promoting working environments, and targeted programs to promote and maintain health. Henkel Social services offers employees with serious illnesses but also with dependent elderly individual counseling as well as organizational and preventive services.

We operate efficient production plants, which are safe for our employees, the communities we operate in, and the environment. In order to continuously increase the safety of our employees and plants, we develop new methods and improve existing ones. Effective occupational safety programs as well as regular safety training for our employees are important steps on the road to our overriding goal to make Henkel a zero-accident company. In 2015, 45 managers from 38 sites in 19 countries (Asia, Europe, Africa, Australia, Middle East) were trained in health and safety as part of a SHE (Safety, Health and Environment) leadership training.

As a manufacturer of consumer goods it is key for us to ensure that our products are safe for our customers and consumers when used as intended. Our product developers and experts for product safety assess ingredients according to the latest scientific findings and safety data. They continuously track Henkel products on the market and incorporate the insights gained into the assessments.

Sustainability Report 2015 (S. 10-11, S. 19-25, S. 49)
Annual Report 2015 (S. 36-37)
Codes and standards
SHE Standards
Social Standards
Health and occupational safety
Social services
Product safety

TOPIC: OCCUPATIONAL HEALTH & SAFETY

G4-LA6 Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender

Omissions:
No breakdown by regions and gender. No disclosures on occupational diseases, lost days and absenteeism.

Sustainability Report 2015 (S. 58)
Occupational accidents

TOPIC: PRODUCT SAFETY AND INFORMATION, ALTERNATIVE TEST METHODS

G4-PR1 Percentage of significant product and service categories for which health and safety impacts are assessed for improvement

All our finished products are subjected to numerous assessments and tests to ensure a high level of safety during production, use, and disposal (see DMA above). Henkel has been carrying out successful research since the early 1980s to develop new methods for testing the safety and compatibility of raw materials and products. Advanced molecular biological methods are used to thoroughly investigate aspects such as the effect of raw materials on human skin cells so that optimized formulations can be developed. As a matter of principle, Henkel only uses animal testing if this is stipulated by legal regulations and there are no accepted alternative test methods available for obtaining the necessary safety data.

Sustainability Report 2015 (S. 22-24)
Product safety

 

G4-PR3 Type of product and service information required by the organization’s procedures for product and service information and labeling, and percentage of significant product and service categories subject to such information requirements

All our products are labelled in accordance with applicable local laws and regulations. For example, in the EU in accordance with Cosmetics Regulation, the ingredients of our cosmetic products are listed on the packaging by their INCI name (International Nomenclature of Cosmetic Ingredients). As provided for by the EU Regulation on Detergents, consumers in the EU can find the ingredients of all our Laundry & Home Care products on a dedicated website. Furthermore, we also provide voluntary safety and warning advice to our consumers about possible risks that can ensue even during correct use or foreseeable misuse of the product and provide tips for the safe use of our products.

 
ASPECT: SOCIAL PROGRESS

G4-DMA Disclosures on management approach

As a local employer and business partner, we make an important contribution to the social progress of society as a whole: We create jobs with fair conditions of employment, provide ongoing training for our employees and customers, and value the diversity of our workforce. In selecting our suppliers, we also consider their performance in regard to sustainability, working conditions and human rights. Our product offers are aligned with local consumer needs and income levels to make the quality of our products accessible to the broadest possible group of people. We also foster the social involvement of our employees and support social projects worldwide together with the Fritz Henkel Foundation. In this way, we stimulate regional economic development, social equality and an improved standard of life worldwide.

Long-term, sustainable and fair relationships with our business partners are the basis of our business model. Adhering to and enforcing fair business practices are key priorities of our global compliance activities. The key guidance for this can be found in the Henkel Code of Conduct, which contains the most important principles and behavioral rules as well as concrete guidelines for dealing with potential conflicts of interest. An effective Henkel compliance organization has global responsibility for all preventive and reactive measures to enforce these principles.

Sustainability Report 2015 (S. 10-11, S. 12-17, S. 44-49, S. 50-52)
Annual Report 2015 (S. 60-61, S. 76-78, S. 80-81)
Codes and standards
Code of Conduct
Social Standards
Corporate Standard
People
Professional development
Employee representation
Purchasing and supplier management
What we expect from our business partners
Responsible Supply Chain Process
Social engagement
Henkel foundations
Corporate volunteering
Social partnerships
Brand engagement

TOPIC: FAIR WORKING CONDITIONS

G4-LA1 Total number and rates of new employee hires and employee turnover by age group, gender, and region

Sustainability Report 2015 (S. 58-59)
Employee indicators

G4-LA2 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation

Fundamentally, all occupational benefits also apply to part-time and fixed-term employees; it is only the employee shareholding program that has limitations for fixed-term employees.

Compensation

 

G4-LA4 Minimum notice periods regarding operational changes, including whether these are specified in collective agreements

In Germany, rules on employee codetermination apply. Locations in other countries are included via the European Works Council. Notice periods correspond to legal requirements or exceed them.

 

G4-LA16 Number of grievances about labor practices filed, addressed, and resolved through formal grievance mechanisms

Omissions:
Grievances about labor practices filed through our formal compliance line are not recorded separately.

Sustainability Report 2015 (S. 10-11)
Compliance

 

G4-HR3 Total number of incidents of discrimination and corrective actions taken

Omissions:
No breakdown of compliance-related incidents by type, therefore no specific disclosure on incidents of discrimination.

Sustainability Report 2015 (S. 10-11)
Compliance

 

G4-HR4 Operations and suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and measures taken to support these rights

Henkel does not influence in any way employee decision making regarding joining a union or participating in collective bargaining. The Henkel Social Standards guarantee the right to exercise freedom of association and collective bargaining.

 

TOPIC: EMPLOYEE DEVELOPMENT

G4-LA9 Average hours of training per year per employee by gender, and by employee category

Omissions:
No breakdown by gender and employee category.

Sustainability Report 2015 (S. 59)
Employee indicators

G4-LA10 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings

Sustainability Report 2015 (S. 44-49)
Professional development

 

G4-LA11 Percentage of employees receiving regular performance and career development reviews, by gender and by employee category

We assess the performance of our managerial employees (22,6%) in annual talent rounds, called Development Round Tables. Non-managerial employees are assessed every two years in confidential feedback meetings with their superiors.

Sustainability Report 2015 (S. 49)
Assessment and feedback

TOPIC: DIVERSITY

G4-LA12 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity

Sustainability Report 2015 (S. 58-59)
Annual Report 2015 (S. 28-29)
Diversity
Employee indicators
Management Board

TOPIC: SUPPLIER RELATIONSHIPS

G4-LA14 Percentage of new suppliers that were screened using labor practices criteria

In selecting our suppliers and business partners we also consider their performance in regard to sustainability and working conditions. This is based on our globally applicable corporate purchasing standards, the Safety, Health and Environment (SHE) Standards that we formulated as early as 1997 as well as our new Sustainable Sourcing Policy from 2015.

Sustainability Report 2015 (S. 16-17)
Responsible Supply Chain Process

 

TOPIC: HUMAN RIGHTS

G4-HR10 Percentage of new suppliers that were screened using human rights criteria

In selecting our suppliers and business partners we also consider their performance in regard to human rights. This is based on our globally applicable corporate purchasing standards, the Safety, Health and Environment (SHE) Standards that we formulated as early as 1997 as well as our new Sustainable Sourcing Policy from 2015. Their implementation is verified through our audit program.

Sustainability Report 2015 (S. 14-17, S. 49)
Purchasing and supplier management
What we expect from our business partners
Responsible Supply Chain Process
Human rights and social standards
Sustainable Sourcing Policy

 

TOPIC: CORPORATE VOLUNTEERING/SOCIAL ENGAGEMENT

G4-SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs

Omissions:
No percentage disclosure.

 

Henkel specific indicator Total number of projects supported

Sustainability Report 2015 (S. 59)
Social Indicators
Social partnerships
Brand engagement

Henkel specific indicator Number of people supported

Sustainability Report 2015 (S. 59)
Social Indicators
Social partnerships

Henkel specific indicator Time off from work for employee-initiated projects (days)

Sustainability Report 2015 (S. 59)
Social Indicators
Corporate volunteering

TOPIC: FAIR BUSINESS PRACTICES

G4-SO4 Communication and training on anti-corruption policies and procedures

Combating corruption is one of the key focal areas of our global compliance trainings. All Henkel managerial employees worldwide are obliged to complete a compliance training twice a year. In addition, new managerial employees have to complete a compliance onboarding training. Non-managerial employees participate in trainings depending on their operational areas, e.g. in purchasing or sales. All Henkel business partners worldwide receive information on our anti-corruption through our globally applicable corporate purchasing standards.

Omissions:
No percentage disclosure of employees that the organization’s anti-corruption policies and procedures have been communicated to, by region and employee category.

Sustainability Report 2015 (S. 10)
Compliance

 

G4-SO5 Confirmed incidents of corruption and actions taken

Omissions:
No breakdown of compliance-related incidents, therefore no disclosure of the total number and nature of confirmed incidents of corruption or of the number of confirmed incidents in which employees were dismissed or disciplined for corruption.

Sustainability Report 2015 (S. 10-11)
Compliance

 
ASPECT: SUSTAINABLE PALM (KERNEL) OIL

G4-DMA Disclosures on management approach

At Henkel, we use less than 0.2 percent of the palm and palm kernel oil produced worldwide. The majority of palm and palm kernel oil in our products is used indirectly through the ingredients based on these oils (e.g. surfactant in laundry detergents and household cleaners as well as cosmetic products). Though we are at the end of a long supply chain, we strive to ensure that whenever palm and palm kernel oil are used in our products, they are derived from sustainably cultivated sources. We are committed to zero net deforestation by 2020. This means that palm and palm kernel oil that we use should not contribute to deforestation of primary or secondary forests with significant ecological value. We are working with our partners in pilot projects to establish full traceability of palm and palm kernel oils used in ingredients for our products. For the raw materials that contain palm or palm kernel oil and for which we worked with our partners in 2015 to establish traceability, we have achieved a traceability rate of between 67 and 94 percent. We are working with our suppliers to ensure that 100 percent of our demand is Mass Balance-certified (i.e. a controlled mix of sustainable and conventional oil) by 2020. This replaces our previous commitment to cover all product ranges with Book & Claim certificates for sustainable palm and palm kernel oil by 2015. In addition, we are providing targeted support to plantations and smallholders in palm-growing countries to promote sustainable farming practices, improve livelihoods and ensure that sufficient volumes of sustainable oil are available on the market. The Henkel sustainability council is responsible for our palm oil strategy and verifies its progress on a regular basis.

Sustainability Report 2015 (S. 25)
Sustainability stewardship
Raw materials

Henkel specific indicator Percentage of mass balanced certified palm (kernel) oil used in our products

With our suppliers we have succeeded in ensuring that around 40 percent of the oil is certified according to the mass-balance model (i.e., a controlled mix of sustainable and conventional oil) to date. Furthermore, Henkel successfully completed the first Roundtable of Sustainable Palm Oil audit of its purchasing operations.

Sustainability Report 2015 (S. 25)
Raw materials

Download GRI Content Index (PDF)