Henkel
The heart of Henkel’s sustainability strategy is to create more value for customers and consumers, for the communities it operates in, and for the company – while reducing the environmental footprint at the same time.
Efforts to reduce the environmental footprint focus on three areas: energy & climate (which includes freight and logistics), materials & waste and water & wastewater. These efforts are aligned with the UN Sustainable Development Goals and Paris Agreement.
Most products are transported by road (67%), followed by sea (23%), rail (9%) and air (1%). Henkel’s overall footprint is 46 million tons CO2e, including product use by consumers and disposal. The transportation of raw materials and products generates 823,000 CO2e, which is 2% of the total, or 6.2% if product use and disposal were not considered.
“Sustainability is part of the genes of the Henkel group fully reflected in our Purposeful Growth strategy. If you want to drive improvements, you need to measure, a thought process fully aligned with the GLEC Framework. Therefore, we decided in 2015 to measure our transportation footprint with one comprehensive global tool.”
Sylvia Opiela
Head of Global Purchasing Logistics, Henkel
Report and set targets
- Reports logistics emissions using the EcoTransIT World Tool in conformance with the GLEC Framework and using real-time transportation data from Henkel’s Transport Management System, which also helps increase truck loads, optimize routes and decrease transport mileage.
- Realized 10% logistics emission reductions per ton of product by 2020 compared to 2015, and meeting scope 3 SBTi’s criteria for ambitious value chain goals the ambition is to reach 30% reduction by 2030.
Reduce
- Expands intermodal transport by adding train routes in Europe using dedicated intermodal tendering processes, reducing 3,700 tonnes CO2e annually. Henkel’s Beauty Care business unit participates in a pool that combines Henkel and other shippers products on an 800 km train route in France.
- Improves the warehouse network in three ways: co-locating production and warehousing facilities “wall-to-wall production”), consolidating transport between individual plants and warehouses, and storing of products at small group of main distribution centers until the required quantities are due for on-time delivery to regional warehouses and retailers (“mega-warehouse” concept). For example, several warehouses in Belgium were integrated into one modern warehouse in France to reduce 39% logistics CO2e emissions. By relocating a warehouse closer to a logistics center in The Netherlands, the delivery distance was reduced by 125 km, saving 25 tonnes CO2e.
- Optimizes transport by pooling different products within Henkel as well as with products from other manufacturers through common logistics service providers. Close collaboration with customers creates synergies in storage, consignment and transportation, and ensures that more fully loaded trucks travel to customers’ central warehouses. Fuel is further reduced by using lighter cardboard pallets and by hiring pallets, which results in more efficient pallet collection and improves the handling of damaged pallets.
- For future mobility introducing new propulsion technologies such as electric and gas, while engaging for future options such as Hydrogen systems.
Collaborate
- Joined the green freight program EVE in France as the first non-food consumer goods company to reduce 10% CO2e emissions from downstream transport to customers from 2017-2020.
- Requires all suppliers worldwide to comply with the cross-sector Code of Conduct of the German Association of Materials Management, Purchasing, and Logistics (BME), which provides information and certified courses for buyers, supply chain managers and logistics managers.
- Driving sustainability in our supply network including logistics suppliers as a co-founder of the TfS Initiative (Together for Sustainability).
- Participates in the Sustainability Consortium and the Consumer Goods Forum’s Measurement Group on product life cycle assessments that include logistics.
- Recognized by various sustainability indices such as Ethibel Sustainability Indices and Euronext VE Indices, and rating schemes such as EcoVadis and ISS ESG research.
About Henkel
Henkel operates worldwide with leading brands and technologies in three business units: Adhesive Technologies, Beauty Care and Laundry & Home Care. The company has 52,000 employees in 56 countries.
Find out more on: www.henkel.com
References
Code of Corporate Responsibility