Business Operations

If you ask Henkel how it managed to cut its worldwide carbon footprint in half a few years ago, its leaders will gladly let you in on the secret: there isn’t one.

The impressive reduction is down to common sense and good old-fashioned effort.

Putting in the work: “One focus is on our own sites and production, and we’re continuously working on this,” said Henkel North America President Pernille Lind Olsen.

• By the end of 2023, the global adhesives and consumer brands manufacturer had fully converted 19 of its worldwide facilities to run on renewable electricity sources, a feat it achieved through on-site energy production including wind and solar, as well as direct purchase of green power from local utility companies.
• Henkel also entered into virtual power purchase agreements, financial transactions through which it buys renewable energy credits that serve to decarbonize geographically diffuse operations.
• In addition, the company hired energy-efficiency consultants to come into its most energy-intensive plants and tell it where and how to cut down on resource use and waste.

Exceeding goals: Thanks to these efforts, Henkel has reduced its carbon footprint by 61%, heading toward its 2025 goal to slash its carbon footprint (from a 2010 baseline) by 65%.

Sustainable personal care: Henkel is always on the lookout for ways to increase the sustainability of its 30-plus beauty and personal care brands, which include Purex and All laundry detergents and Schwarzkopf hair cosmetics.

• For example, the company keeps a formulation database of its more than 200,000 products. In the database, each formula is assigned a compact sustainability report, making it possible for the company to compare profiles “to optimize the impact of our footprint,” Olsen told us.
• Last March, Henkel reformulated and repackaged its Dial body washes in order to use bottles made from 100% recycled plastic.
• Henkel has also reduced the amount of virgin plastic in the bottles of Persil laundry detergent, replacing it with recycled content.

Less to landfills: Henkel isn’t done setting goals. It’s now aiming to send exactly zero waste to landfills by 2030.

• And it’s making progress: through partnerships with local waste management companies, in 2023 Henkel converted three of its U.S. sites to redirection rather than disposal—that is, they recycle or reuse items rather than throw them away.
• Meanwhile, some 82% of Henkel’s global facilities had already been doing the same.

A symbiotic relationship: Pursuing sustainable methods is both a business and moral imperative for the company, which will celebrate 148 years of business in September.

• “As climate change becomes a bigger challenge for everyone to tackle, it becomes increasingly necessary to prioritize sustainability as part of your business,” Olsen said.
• “And sustainability is good business for us and our customers. There’s a price benefit there. For example, when you lower the temperatures or reduce process steps at our industrial process customers, energy and material usage will be lower, maintenance of the equipment becomes less frequent and you can run longer without stopping, which saves money.”

Stronger together: “To make sure the planet’s resources can sustain us and our kids for generations, we will need to tackle the sustainability challenge of how to use less energy, fewer materials, less water,” Olsen concluded.

• “That’s a big challenge, and I’m a firm believer that it needs to be tackled collaboratively. I believe the business leaders of today play a decisive role in how we will do that.”