Further progress of purposeful growth agenda: extended commitment for climate protection
DÜSSELDORF, GERMANY / ACCESSWIRE / November 4, 2024 /In line with its ambitions for sustainability within its agenda for purposeful growth, Henkel has defined a net-zero roadmap, substantially extending its targets for emissions reduction along the value chain. To achieve net-zero, the company has set the following targets:
reduce absolute scope 1 and 2 greenhouse gas (GHG) emissions by 42 percent by 2030 (base year 2021)
reduce absolute scope 3 GHG emissions by 30 percent by 2030 (base year 2021)
reduce absolute scope 1, 2 and 3 GHG emissions by 90 percent by 2045 (base year 2021)
These new targets have also been verified by the "Science Based Targets initiative (SBTi)", a corporate climate action organization that supports companies to set net-zero targets in line with the Paris Agreement.
"We all have to take responsibility and help limit global warming to 1.5°C, as set out in the Paris Climate Agreement - and we are already too close to this threshold," said Carsten Knobel, CEO of Henkel. "We have therefore extended our climate commitment to achieve net-zero greenhouse gas emissions by 2045 with concrete actions along our entire value chain."
New net-zero targets cover emissions along the value chain
Compared to Henkel's previous climate targets, the new net-zero targets cover a broader part of the value chain. Beyond the emissions from production processes, the targets for scope 1 and 2 emissions now encompass all operations, including office buildings, warehousing, research and development, and the vehicle fleet.
The emissions reduction targets for scope 3 cover Henkel's indirect emissions occurring both up- and downstream in the value chain. Besides emissions from raw materials and packaging, the new science-based targets also include emissions from logistics or the end-of-life treatment of products, among others. Furthermore, the targets go beyond the reduction of only CO2 emissions alone, encompassing all seven greenhouse gases as defined by the United Nations' Kyoto Protocol.
"Net-zero" means balancing all human-made greenhouse gas emissions by removing them from the atmosphere. Following the SBTi's "Corporate Net-Zero Standard", it is classified as a state of at least 90 percent absolute emission reductions across the value chain (scope 1,2,3) through direct abatement measures before employing methods to neutralize residual emissions, for example through innovative ways of carbon capture.
Maximum emissions reduction
Direct abatement measures of emissions at Henkel's own sites will focus predominantly on increased energy efficiency and the expansion of renewable energies to cover the remaining energy demand. The share of Henkel's purchased electricity, which comes from renewable sources, already stands at 89 percent worldwide. Only recently, Henkel has achieved an important milestone converting all its production processes for its Consumer Brands business unit in Europe to carbon neutral energy.
In order to bring the evaluation of its CO2 emissions in the upstream supply chain to the next level, Henkel has launched a comprehensive engagement program for its worldwide suppliers called "Climate Connect". The program aims to advance decarbonization along the value chain of both business units through the collection of emissions data, jointly defined actions for reduction and continuous upskilling of suppliers.
Henkel is also working to further increase the proportion of ingredients based on low-emission, renewable or recycled raw materials in its consumer goods and adhesives technologies.
With its sustainable packaging strategy, Henkel contributes to emission abatement by minimizing the amount of packaging material and maximizing the share of low-emission, recycled and renewable packaging alternatives. The new packaging concept for cartridges of Henkel's consumer adhesives, for example, significantly reduces the use of virgin plastic by using up to 95 percent recycled plastic from post-consumer recyclate (PCR). The initiative is being rolled out across Europe.
As a large part of the scope 3 emissions are generated in the product application phase, Henkel wants to encourage consumers to a more responsible-minded behavior through targeted communication. Even though these emissions cannot be directly impacted and are therefore excluded from the net-zero target setting, Henkel will continue to strongly focus on consumer education, for example with its initiative "It starts with us" from Henkel Consumer Brands. The campaign provides recommendations for more resource-efficient product use in everyday life of consumers.
Further information on the company's climate targets can be found in Henkel's "Climate Transition Plan".
This document contains statements referring to future business development, financial performance and other events or developments of future relevance for Henkel that may constitute forward-looking statements. Statements with respect to the future are characterized by the use of words such as expect, intend, plan, anticipate, believe, estimate, and similar terms. Such statements are based on current estimates and assumptions made by the corporate management of Henkel AG & Co. KGaA. These statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and results actually achieved by Henkel AG & Co. KGaA and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially (both positively and negatively) from the forward-looking statements. Many of these factors are outside Henkel's control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. Henkel neither plans nor undertakes to update forward-looking statements.
This document includes supplemental financial indicators that are not clearly defined in the applicable financial reporting framework and that are or may be alternative performance measures. These supplemental financial indicators should not be viewed in isolation or as alternatives to measures of Henkel's net assets and financial position or results of operations as presented in accordance with the applicable financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently.
This document has been issued for information purposes only and is not intended to constitute an investment advice or an offer to sell, or a solicitation of an offer to buy, any securities.
