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More Henkel Corporate Reporting 2015
Our company first published an Environment Report in 1992. It reviewed our achievements, product improvements, and the progress made in the area of environmental protection at our production sites. Henkel subsequently began preparing an annual report on the company’s major sustainability activities.
In 2015, we collected data on 170 sites, representing 100 percent of our global production volume. To assess our footprint along the entire value chain, we use representative life cycle analyses that cover around 70 percent of our sales across all product categories. We also assess data on the raw ingredients and packaging materials we use and the transport operations.
Henkel works with various measurement methods to optimize the “Value” and “Footprint” dimensions. These allow the actions to be identified that have the greatest effect on sustainability along the value chain. Considering our portfolio as a whole, it is evident that improvements in the raw materials and the use phase have a significant impact on the water and carbon footprint.
The various instruments are summarized in the Henkel Sustainability#Master®. Its core element is a matrix that can be used to assess changes in both the “Value” and the “Footprint” dimensions. We use the results to develop innovations with improved sustainability performance. Only by considering the entire life cycle can we ensure that the action taken will improve the overall sustainability profile of our products.
In line with our ambition that each new product must make a contribution to sustainability, we assess our products systematically throughout our innovation process. To make it easier to optimize our products while they are being developed, we integrate the environmental profiles of possible raw ingredients and packaging materials into the information systems of our product and packaging development departments. This allows the footprint of a new formulation to be computed as early as the development phase.
We are currently using the knowledge we have gained to further improve our assessment and measurement systems to allow us to make an integrated assessment of our progress toward our 20-year goal for 2030 across the entire company and our value chain.
In 2015, our work was mainly concentrated on improving the data basis for the raw ingredients and packaging materials we use; updating the emissions factors for the energy usage figures for our sites worldwide; and further developing our computing models for logistics emissions.
We are working with selected partners to further develop and standardize the accounting methods used for the environmental footprint of our business activities, and for the value created for our customers, consumers, and the communities in which we operate. For example, we participate in the Sustainability Consortium, the Consumer Goods Forum and the World Business Council for Sustainable Development (WBCSD).
In a joint project with the International Council of Chemical Associations (ICCA) and the WBCSD, we developed guidelines for measuring and communicating how greenhouse gases can be avoided in value chains. We are also participating in the current EU Commission’s “Product Environmental Footprint” project coordinated by the International Association for Soaps, Detergents and Maintenance Products (A.I.S.E.). (see also here)
Globally uniform standards for safety, health, environment (SHE) and integrated management systems provide the basis for our worldwide optimization programs. The SHE Standards and our Social Standards apply to all sites. Our management systems ensure that these standards are implemented consistently across our global production network. Since our employees’ behavior plays a key role in this respect, we conduct regular environmental and safety training sessions on a variety of topics at all sites.
We carry out regular audits at our production sites and, increasingly, at our subcontractors and logistics centers to verify compliance with our codes and standards. All audit results, including the monitoring of our SHE and Social Standards, are included in the Internal Audit department’s annual report to the Henkel Management Board.
We have our management systems externally certified at the site level wherever this is expected and recognized by our partners in the respective markets. At the end of 2015, around 95 percent of our production volume came from sites certified to ISO 14001, the internationally recognized standard for environmental management systems. 96 percent of our production volume is covered by the ISO 9001 quality management standard and 56 percent is covered by the ISO 50001 energy management standard. Furthermore, around 94 percent of our production volume came from sites certified to the OHSAS 18001 standard for occupational health and safety management systems.