Henkel : Sustainability Report 2022 ‏ (5,87 MB)

SUSTAINABILITY REPORT

HENKEL SUSTAINABILITY REPORT 2022

CONTENTS

REFERENCE LOGIC

• Reference within the report

02

03	Foreword	73 Thriving Communities
04	Highlights 2022 at a glance	75	Equity
05	Company profile		76	Corporate culture
07	Business model		77	Fair working conditions
08	Value added		80	Diversity, Equity & Inclusion
				84	Respecting human rights
10	Strategy	89	Education
11	Sustainability strategy		89	Employee development
16	Targets and ambitions		93	Social engagement
19	Relevant topics	98	Wellbeing
	19	Development of strategy, targets and		98	Health
		roadmaps for implementation		101	Occupational safety
	23	Contributions to the SDGs		102	Future of work
25	Implementation and management
	25	Organization for responsible corporate	104 Trusted Partner
		governance	106 Performance
	27	Sustainability management		107	Products and technologies
	29	Compliance		111	Product safety
	31	Stakeholder management	115 Transparency
				115	ESG data
33	Regenerative Planet		119	Sustainable finance
35	Climate		124	External assessments
	36	Our understanding of climate protection	126 Collaboration
	38	On-site measures		126	Sourcing
	42	Engagement along our value chain		131	Together for a sustainable supply chain
50	Circular economy		134	Cooperation along the value chain and beyond
	51	Packaging
	59	Production waste	137 Indicators
61	Natural resources	154 Indices
	61	Biodiversity and responsible resource	171 Scope and reference framework
		management	176 Credits
	67	Water

Reference to an external source

HENKEL SUSTAINABILITY REPORT 2022

03

FOREWORD

HIGHLIGHTS 2022

COMPANY PROFILE

STRATEGY

REGENERATIVE PLANET

THRIVING COMMUNITIES

TRUSTED PARTNER

INDICATORS

INDICES

SCOPE AND REFERENCE FRAMEWORK

CREDITS

The past fiscal year was marked by specific geopolitical events that deeply shook us. The war in Ukraine and its far-reaching consequences shaped the year 2022. This impacted our ­society, our business activities and each and every one of us. Our first concern was for our affected employees and their families, who we supported through a comprehensive emergency aid program. In addition, the global raw material and energy crisis further intensified the socio-economic challenges. This presented us all with new tasks, and called for innovative and forward-looking solutions.

The year 2022 showed us that we are well positioned with our corporate purpose "Pioneers at heart for the good of generations." Looking ahead and sharing the will to make a difference for future generations is what drives us and what helped us to further embed sustainability this year.

The framework for this was our 2030+ Sustainability Ambition Framework, with the goal of driving change toward a regenerative planet and thriving communities and acting as a trusted partner to our stakeholders.

In the past fiscal year, we worked on a more sustainable product portfolio, for example by using renewable and recycled raw materials. We also made significant progress toward our goal of achieving a climate-­positive carbon footprint for our production sites by 2030 by further­ expanding renewable energies.

We are convinced that people are an important lever toward a sustainable transformation. With our "Sustainability at Heart" program, we provide our employees with a comprehensive knowledge and training platform on the subject of sustainability. Through our far-reaching social commitment, we have made a positive contribution to societal development.

The transformation of all areas of life in the balance of economic, ecological, and social value creation challenges our pioneering spirit and we want to continue to address this challenge in the future!

On behalf of all Henkel employees, I would like to thank you for your interest in our Sustainability Report 2022.

SYLVIE NICOL

Executive Vice President Human Resources and

Chair of Henkel's Sustainability Council

HENKEL SUSTAINABILITY REPORT 2022

04

HIGHLIGHTS 2022 AT A GLANCE

We consistently and successfully implemented our sustainability strategy once again in 2022.

Here are some examples from different fields of action:

2030+

Publication ofthe sustainability strategy: 2030+ Sustainability Ambition Framework

Henkel further developed its

­sustainability strategy in 2021. In March 2022, we published the new 2030+ Sustainability Ambition Framework, in which Henkel defines additional, new ambi- tions, taking into account global developments. The purpose of the framework is to help make the economy and society even more sustainable in the future.

Solidarity with Ukraine

In 2022, one focus of our volunteer program and emergency aid efforts was on activities in support of Ukraine. The comprehensive aid package included a cooperation with the Non-Governmental Organization (NGO) Habitat for Humanity. In collaboration with that NGO, Henkel colleagues from all over Europe carried out a construction project to build homes for refugee families in Romania. In partnership with the Fritz Henkel Foundation, Henkel also launched an extensive ­solidarity program for Ukraine with a total volume of around six million euros.

10-year renewable	200
energy contract
with IGNIS	GWh per year

Henkel and Spanish energy company IGNIS concluded a 10-year virtual Power Purchase Agreement for the supply of renewable energy. This agreement will ensure the supply of around 200 GWh per year of renewable energy to our European sites.

Henkel CEO joins WEF Alliance of CEO Climate Leaders

Henkel CEO Carsten Knobel joined the WEF Alliance of CEO Climate Leaders. Its goal is to accelerate the transition to Net Zero and drive progress on tackling climate change.

Increased traceability rate for	84 %
palm­ -based raw materials
In 2022, we increased the traceability rate to
the mill from 84 percent to 89 percent as
part of a survey on the transparency of our	89 %
supply chains for palm-based raw materials.
↓
This brings us closer to our goal of full
traceability.

Relaunch of the Schauma hair care brand

Schauma brand shampoos and conditioners were relaunched in 2022. In addition to the solid pieces packaged in a recyclable folding paper box,

the PE bottle bodies now consist of 50 percent recycled plastic and the PET bottle bodies consist of at least

98 percent recycled plastic. The packaging also has a reduced weight and the caps are made from 25 percent recycled plastic.

Development of our innovative and	650
technological strengths

Launch of the Sustainability at Heart program

Our training programs for employees in the area of sustainability have been expanded to include a holistic engagement program: the Sustainability at Heart

program­ . The objective is to more comprehensively inform and empower our employees in the future and

to further­ support our joint active engagement.

Investment in innovation fund for sustainable packaging

Henkel invested in a new fund from Emerald Technology

­Ventures as part of its corporate venture capital activities. The packaging fund offers access to a wide range of startups in areas ranging from material and technology innovations to recycling solutions, with the aim of driving the development of advanced materials and industrial technologies for sustainable packaging.

In 2022, the Adhesive Technologies business	experts
unit further strengthened its collaboration
with customers on the topic of sustainability.

We created a special platform for cross-industry exchange and the identification of effective partnerships as part of the Innovation & Sustainability Days event. Customers and partners also had the opportunity to experience the newly opened Henkel Inspiration Center in Düsseldorf, where they are able to collaborate with more than 650 Henkel experts from research and development to explore forward-looking solutions.

HENKEL SUSTAINABILITY REPORT 2022	05

COMPANY

PROFILE

Henkel is a leader in consumer and industrial businesses. Our portfolio includes familiar brands in hair and body care, detergents and cleaners, adhesives and sealants, as well as functional coatings. We shape our future on the basis of a long-term strategic framework that builds on our purpose and our values, with a clear focus on purposeful growth.

1. BUSINESS MODEL
2. VALUE ADDED