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Corporate Reporting 2015

Henkel Corporate Reporting 2015

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Sustainability Report 2015

Henkel Sustainability Report 2015

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Henkel Facts and Figures 2015

Corporate Report 2015

Henkel Corporate Report 2015

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Sustainability Report 2015

Associations and international initiatives

Actively shaping sustainable development

On local, national and international levels, Henkel participates in a wide variety of projects, topical initiatives, and symposia, so that it can play an active part in shaping sustainable development in collaboration and through a mutual exchange with other stakeholders.

This also includes engagement in policy-making workgroups and in industrial associations, such as the World Business Council for Sustainable Development (WBCSD), the Consumer Goods Forum (CGF), and the International Association for Soaps, Detergents and Maintenance Products (A.I.S.E.). Here, we use our experience and leadership in sustainability, for example, to shape the debate on solutions for sustainable consumption along the value chain.

Under the leadership of our retail partner Walmart Central America, Henkel has come together with 18 other leading companies to create the Central American Sustainability Business Alliance. The goal of this alliance is to collaborate with suppliers, employees, customers and local communities to promote sustainability along the value chain, such as through inexpensive products that reduce water usage and CO2 emissions.

Our participation in associations and international initiatives

In 1993, Henkel joined the World Industry Council for the Environment. In 1996, the Council merged with another industry initiative to form the WBCSD, of which Henkel is therefore also a founding member.

In 2003, Henkel joined the United Nations Global Compact. By participating in the Global Compact, Henkel publicly committed to uphold human rights and fundamental principles and rights at work, to protect the environment and to work against all forms of corruption.

In the run up to the Earth Summit in Rio de Janeiro (1992), Henkel was one of the first companies to sign the International Chamber of Commerce’s Business Charter for Sustainable Development in 1991. Taking the 16 management principles of the ICC Business Charter for Sustainable Development as a basis, Henkel has conducted a self-evaluation in 2002 of how far it has progressed toward sustainability during the past years.

In 1995, Henkel committed to the chemical industry's international Responsible Care initiative. Product stewardship, plant safety, occupational and environmental protection, transport safety and dialog are firmly anchored in its corporate standards.

To develop and promote new solutions for sustainable harvesting and use of palm oil throughout the value chain, we have been actively supporting the aim of the “Round Table on Sustainable Palm Oil” (RSPO) for years. In 2007, for example, a Henkel representative attended the fifth meeting of the Round Table (RT5) in Kuala Lumpur, Malaysia. Since April 2008, Henkel has been an official member of the RSPO.

Since April 2008 Henkel participates in the Product Carbon Footprint Pilot Project Germany. Under the project leadership of the WWF, Öko-Institut for Applied Ecology, the Potsdam Institute for Climate Impact Research, Henkel and nine other companies have come together to work on the issue of assessing and communicating product-related greenhouse gas and CO2 emissions, or so-called Product Carbon Footprints (PCF). The objective is to contribute to the international harmonization of methodologies for PCF assessments. The Project will explore possibilities of communicating PCF of goods and services to customers and consumers, taking into account recent developments in other markets.

Henkel has supported the “Global Roundtable on Climate Change” of Columbia University, New York, since May 2007. The multi-stakeholder forum brings together high-level representatives from the private sector, research institutions, international governmental and non-governmental organizations. The objective is to discuss and explore areas of potential consensus regarding core scientific, technological, and economic issues critical to shaping sound public policies on climate change.

The European Partnership for Alternative Approaches to Animal Testing (EPPA) is a joint initiative of the European Commission, the European trade associations of seven industry sectors, and individual companies. It was founded in November 2005 with the aim of promoting the development and establishment of new alternative methods for testing safety according to the 3R principles (replace, reduce, refine).

The A.I.S.E. Charter for Sustainable Cleaning is a voluntary initiative of the international soaps, detergents and cleaning products industry and was introduced with the intention of making positive contributions to society and for the environment. The Charter provides a framework based on considering product life cycles in order to promote sustainable behavior and reporting. The framework covers a broad spectrum of activities and initiatives, e.g. the safety of chemicals and products for people and the environment. The Charter itself goes beyond existing legal requirements and is designed to encourage the industry to continuously improve sustainability performance. Companies which have signed up to the Charter direct their efforts at incorporating the sustainability ethos at all stages of a product life cycle, from design and manufacture to use and disposal.

The Diversity Charter is a fundamental commitment to treating people in an enterprise with fairness and dignity. Companies which sign this charter commit to creating a working environment that is free of discrimination and exclusion. The goal is to establish a corporate culture based on inclusion and mutual respect. Another aspect is identifying the different qualities and talents that staff may have and making use of these in the workplace, with the ultimate aim of providing the best possible service to customers.

“AIM-PROGRESS” is a forum set up by companies in the consumer goods industry. It was established in order to enable and promote responsible procurement practices and sustainable production systems. A central feature of AIM-PROGRESS is the provision of a platform for exchanging views on responsible procurement practices and for supporting effective cooperation and potential alliances with other global initiatives with similar goals or interests. The forum wishes to promote and develop the utilization of general assessment methods for determining CSR performance within the value chain. It also aims to increase efficiency for all companies by collecting, evaluating and sharing non-competitive information on the CSR performance of value chains.

Enactus is an international non-profit organization which works together with leading corporations and educational establishments with the aim of encouraging university students to take the initiative within their communities, coupled with the side effect of helping them to develop their own skills and personalities so that they may later become socially responsible leaders. Participating students form teams at their universities and submit business models for carrying out outstanding projects to improve the living standards and quality of life of people in need.

More than 1,000 companies support the Fair Company initiative which promotes fair internships and the provision of real opportunities for university graduates. Before joining this initiative, each company must sign a declaration to abide by five rules.

In 2012, Henkel and five other companies in the chemical industry established an initiative entitled “Together for Sustainability – The Chemical Initiative for Sustainable Supply Chains.” It is based on the principles of the United Nations Global Compact and the Responsible Care Initiative of the International Council of Chemical Associations (ICCA). The Initiative’s aim is to harmonize the increasingly complex supply chain management processes and to optimize the dialog between worldwide business partners.

In 2013, Henkel started supporting the Chemie3 initiative of the German Chemical Industry Association (VCI), the Mining, Chemical and Energy Industrial Union (IG BCE) and the German Federation of Chemical Employers’ Associations (BAVC). Chemie3 was formed to further the cause of sustainable development in the chemical industry. It sees sustainability as an obligation to current and future generations and as a strategy for the future in which economic success is coupled with environmental responsibility and social equity. The initiative has developed twelve guidelines to provide orientation for enterprises and inspiration for the international community, and to reinforce the theme of sustainability in the chemical industry.

In 2013, Henkel joined the “SAVE FOOD” initiative, which promotes dialog between business, research, politics, and civil society on the topic of food loss. In close cooperation with the Food and Agriculture Organization of the United Nations (FAO), the initiative was founded by Messe Düsseldorf GmbH and is supported by numerous businesses in the food, packaging, and logistics sectors. It aids in the fight against food loss globally. “SAVE FOOD” regularly brings together stakeholders in the food value chain in conferences and projects to develop effective measures. Creating greater awareness among consumers is an additional goal.

  Henkel is a cofounder of the Forum for Sustainable Palm Oil (Forum nachhaltiges Palmöl – FONAP) formed in 2013 – an alliance of companies, associations and non-governmental organizations, which seeks to work together to devise viable ways to improve practices in the palm oil sector. Members of FONAP voluntarily committed to using 100 percent certified palm oil. The aim of the Forum is to improve certification systems, to boost significantly the proportion of segregated, certified sustainable palm oil on the German, Austrian and Swiss markets and to make 100 percent certified palm oil available for these markets as soon as possible.

Global Compact

Communities can only function if all of their members are prepared to accept responsibility. This applies to governments and companies as well as individual citizens. The role of governments is to develop internationally binding agreements – for example, on global priorities for sustainable development or the protection of human rights – and to ensure their implementation. Globally operating companies are called upon to provide active support. They must actively accept responsibility within their sphere of influence and thus contribute to the global implementation of sustainable solutions. Henkel has embraced this challenge in daily practice for many years. As a visible sign of its commitment, in July 2003 the Company declared its participation in the United Nations Global Compact. For Henkel, this declaration was a further step taken to emphasize the importance of high standards for its global activities.

The principles of the Global Compact

The spirit of the Global Compact is already embedded in Henkel’s vision and values. The associated corporate value reads: Henkel is dedicated to sustainability and corporate social responsibility. The corporate ethic derived from this commitment is defined in worldwide standards and a Code of Conduct, with which all employees must comply. For Henkel, participation in the Global Compact was another step in the process of emphasizing the importance of high standards in its worldwide activities. As a part of this process, it informed its employees and communicated its participation to the public, its business partners and its shareholders.

The 10 Principles of the Global Compact

Companies and other private institutions that join the Global Compact commit to support the following objectives and values in their corporate policies:

Human Rights

  1. Businesses should support and respect the protection of internationally proclaimed human rights within their sphere of influence; and
  2. make sure that they are not complicit in human rights abuses.

Labor Standards

  1. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
  2. the elimination of all forms of forced and compulsory labor;
  3. the effective abolition of child labor; and
  4. eliminate discrimination in respect of employment and occupation.

Environment

  1. Businesses should support a precautionary approach to environmental challenges;
  2. undertake initiatives to promote greater environmental responsibility; and
  3. encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption

  1. Businesses should work against all forms of corruption, including extortion and bribery.

The principles of the Global Compact are based on universal consensus, being derived from the Universal Declaration of Human Rights, the International Labor Organization’s Declaration of Fundamental Principles and Rights at Work, and the United Nations’ Rio Declaration on Environment and Development.

Global Compact Index