Sustainability Report 2013

Laundry & Home Care

First class performance – less resources

Our consumers expect products to satisfy the criteria of quality, environmental compatibility, and social responsibility in equal measure. This requirement guides our actions and is the driver for innovations and the basis for our future competitiveness. Our research and development strategy combines innovation and sustainability to provide resource-efficient technologies and products. Every new product makes a greater contribution to sustainable development in at least one of our six focal areas along the value chain than its predecessor product. Since 2011, for example, we have reduced the CO2 footprint of our raw materials by an average of 4 percent per year relative to total sales.

“We develop innovative technologies that combine firstclass performance with resource
efficiency.”

 

Bruno Piacenza
Executive Vice President
Laundry & Home Care

Focus on the use phase

An important objective of our strategy is fostering sustainable, resource-conserving consumption. Our products are the key here. They are used daily in millions of households and often require water and energy. As much as 70 percent of the environmental footprint of our products is generated during their use. We thus concentrate on developing products that enable the efficient use of resources such as energy and water.

Through targeted consumer communication we also try to promote responsible use of the products. We use communication appropriate for the target group, including on the internet, to point out the advantages of our products. We also encourage resource-efficient use by means of our resource calculator for laundry.

Our retailers are important partners for Henkel on the road to more sustainable consumption. They provide us with excellent platforms for informing consumers about more sustainable products and how to use them in an environmentally responsible way. Current examples of energy-efficient products are Somat 10 and our low-temperature laundry detergents. Persil Megaperls and Purex Cold Water, for instance, are laundry detergents that deliver their full cleaning power even at low washing temperatures. Energy savings of up to 40 percent can be achieved by reducing the washing temperature by 10 degrees – from 40 to 30 degrees Celsius, for instance.

Sustainable cleaning

In 2005, Henkel became the first company to fulfill the criteria of the Charter for Sustainable Cleaning of the International Association for Soaps, Detergents and Maintenance Products (A.I.S.E.). Around 200 companies have now joined this initiative. All companies that sign the Charter pledge to continuously improve their processes and to report annually on their economic, environmental, and social advances, using defined indicators. Together, these indicators now reflect more than 85 percent of the European production volume of laundry and home care products.

As part of its further development, the A.I.S.E. Charter was expanded in 2010 to include the dimension of products. It is now possible to show not only that a product was manufactured by a company with sustainable business practices, but that it has a progressive sustainability profile itself. In the laundry detergents category, for example, four criteria are of particular importance: environmental safety of the ingredients; resource efficiency with regard to dosage and packaging materials; washing performance at low temperatures; and consumer information.

Products that satisfy all of the defined requirements may communicate this to consumers on their packaging by means of a new A.I.S.E. Charter logo introduced in July 2011. These include our liquid and powder laundry detergents and our fabric softeners. As of April 2013, the logo may also be used for our automatic dishwasher products.

With the support of Henkel and other industry and trade partners, A.I.S.E. plans to implement the “I prefer 30°” campaign across Europe this year. The common goal of the campaign is to encourage consumers to use lower temperatures when washing laundry. The associated internet site provides consumers with information about, for example, what temperature to use when washing certain fabrics.

Responsible management of raw materials

Henkel has been using ingredients based on renewable raw materials for decades. In 2013, more than 30 percent of the washing active substances (surfactants) in our laundry detergents and household cleaners were derived from renewable raw materials. This is clearly above the average in the laundry and home care industry as a whole.

Since palm kernel oil is an important raw material for the production of surfactants, Henkel promotes the use of sustainability criteria in the supply chainsupply chain
Encompasses purchasing, production, storage, transport, customer services, requirements planning, production scheduling and supply chain management.
. We participate in the Roundtable on Sustainable Palm Oil
(RSPO) to encourage the sustainable production of palm oil and palm kernel oil. Henkel also established the Forum on Sustainable Palm Oil together with other industry and trade partners, non-governmental organizations, and associations in September 2013. The Forum wants to go beyond the RSPO standard and promote more sustainable production of palm and palm kernel oil in the palm-growing countries. The goal of the Sustainable Palm Oil Forum is to significantly increase the share of segregated and certified palm oil and palm kernel oil from sustainable production and related derivatives such as surfactants in the German, Austrian, and Swiss markets.

Our contribution to the sustainable cultivation of palm oil

“Solidaridad” small farmer program

In addition, Henkel would like to provide more targeted support for sustainable palm oil production in the future that is aimed at small farmers and local initiatives in the palm-growing countries. The Laundry & Home Care business unit, Solidaridad development organization, and other partners therefore started a three-year program in Honduras in the summer of 2013 aimed at improving the livelihood of 7,500 small farmers and 5,000 workers. Our common goal is to create a sustainable supply chainsupply chain
Encompasses purchasing, production, storage, transport, customer services, requirements planning, production scheduling and supply chain management.
for palm and palm kernel oil that can be certified under the RSPO criteria. This project will be the first time that a country has almost completely changed over to sustainable palm oil production.

The small farmers that are participating will receive training and assistance in optimal agricultural practice and better plantation management until the end of 2015 to allow them to increase the productivity and yield of their plantations. Worker training covers the key areas of health and safety and promotes the application of the RSPO sustainability criteria. The World Wide Fund for Nature (WWF), the Netherlands development organization SNV, and the Proforest initiative are important partners in the project.

Program for sustainable palm oil production

The Laundry & Home Care business unit, the Solidaridad development organization, and other partners initiated a program for 7,500 small farmers and 5,000 workers in Honduras in 2013. Among other things, the program includes training in agricultural management. The goal is to create a sustainable supply chainsupply chain
Encompasses purchasing, production, storage, transport, customer services, requirements planning, production scheduling and supply chain management.
for palm and palm kernel oil.

www.solidaridadnetwork.org/palmoil

High-performance enzymes for laundry detergent

Enzymes have been a standard ingredient in modern laundry detergents for decades. It is mainly enzymes that allow today’s laundry detergents to efficiently remove a wide variety of stains, even at low temperatures. Because the enzymes have been continuously improved and the formulations used are highly energy and resource-efficient, laundry detergents can now make a significant contribution to sustainable development.

Henkel recognized Novozymes as the “Best Innovation Contributor Laundry & Home Care” in 2013. This company has developed a patented, highly efficient combination of enzymes with outstanding stain removal properties. It is part of a new formulation used in all Henkel heavy-duty laundry detergents and improves performance significantly, particularly at 20 and 30 degrees Celsius.

Henkel and the enzyme producer c-Lecta have been working on new enzymes since 2013 to develop the next generation of sustainable laundry detergents. Their focus is on further improving the removal of stubborn stains, as this is particularly important to consumers.

Waste separation in Algeria

Henkel has set itself the goal of promoting systematic waste avoidance, waste separation, and recycling of valuable materials. Henkel’s Laundry & Home Care business unit started a pilot project called “Jemeco” for collecting packaging materials at production sites and retail outlets, making it the first company in Algeria to do so. In addition, recycled materials are used to produce new packaging. We are working on this closely with the Algerian Ministry of the Environment, the National Waste Management Agency, the German-Algerian Chamber of Commerce, and a recycling company.

Henkel Sustainability#Master® – Somat Gel Caps (compared to gel bottle)

Henkel introduced a new kind of automatic dishwashing detergent to the European market in 2013. The pre-dosed liquid detergent capsules use a 100 percent water-soluble and biodegradable film. This multi-functional technology provides powerful cleaning performance in an easy-to-use format. In terms of “environmental footprint,” the high solubility and quick release of the active substances make the product exceedingly effective at temperatures below 40 degrees Celsius. This allows consumers to reduce energy use significantly compared to similar cycles at temperatures of 50 or 55 degrees Celsius, thereby helping to conserve resources. In addition, the concentrated formula allowed the packaging to be reduced by up to 30 percent.