Sustainability is a key component of our strategic agenda for purposeful growth and of Henkel’s equity story. This topic is also highly relevant for investors and the global financial markets. Institutional investors are increasingly including sustainability in their risk and opportunity management, as they are convinced that sustainable companies are more successful in the long-term. In this respect, sustainability is an increasingly critical success factor for competitiveness as an issuer on the capital market.
SUSTAINABLE INVESTMENT
We drive transformative change by creating more value for our stakeholders, developing our business successfully and acting sustainably for the benefit of current and future generations. Our initiatives and progress in the area of sustainability are not only a relevant topic in the context of investor relations, sustainable financing is also firmly anchored in our finance strategy.
ESG has become very important as a success factor in the risk and opportunity management of our investors. We implemented innovative sustainable finance solutions at an early stage and we are continuously developing them further.
Marco Swoboda
Henkel CFO
OUR HOLISTIC
SUSTAINABILITY STRATEGY
We want to boost sustainability as a true competitive differentiator. Sustainability is essential to create a competitive edge, enable business growth and generate value for our customers, consumers and all of our stakeholders. To drive sustainable development, we have set ourselves ambitious goals covering the ESG dimensions Regenerative Planet, Thriving Communities and Trusted Partner as part of our 2030+ Sustainability Ambition Framework that build on our progress to date and which we are rigorously pursuing.
SUSTAINABLE
FINANCE
Henkel implemented innovative solutions in the area of sustainable finance at an early stage. Sustainability is firmly anchored in our finance strategy. In 2018, Henkel was the first company in Germany to link its syndicated revolving credit facility to sustainability criteria and successfully refinanced it in 2024.
We introduced an ESG Framework for Pension Asset Management in 2015 and updated it in 2020 by integrating ESG ratings for active fund managers and ESG index benchmarks for passively managed investments. Today’s focus is on making the decarbonisation pathway of our pension portfolio visible.
SUSTAINABILITY ANCHORED WITHIN THE COMPANY
Sustainability management is integrated vertically, horizontally and cross-functionally into our organizational structure. The Henkel Management Board bears overall responsibility for our sustainability strategy. The Sustainability Council chaired by CHRO Sylvie Nicol is the central corporate management body in charge of our global sustainability activities.
INTEGRATION & IMPLEMENTATION IN
THE COMPANY & OUR BUSINESSES
The alignment of our sustainability strategy is also reflected in the strategies of our business units. They align their businesses, brands and technologies to sustainable development in line with the specific challenges of their product portfolio and have prioritized their focus points accordingly.
ESG TARGETS EMBEDDED IN
MANAGEMENT REMUNERATION
Sustainability has been taken into account in Henkel's Management Board remuneration for many years. With effect from 2023, the remuneration of the Management Board was modified so that ESG targets are included in the long-term incentive with a weighting of 20 percent. Even before 2023, sustainability targets were part of the individual targets as part of the short-term incentive. We report transparently on the respective targets and target achievements in our Remuneration Report.
