Climate Strategy and Targets 

Climate change is one of the greatest challenges of our time. The planet’s temperature is already 1.1°C above pre-industrial levels. Human activities that generate greenhouse gas emissions have caused significant damage to ecosystems. This has exposed up to 3.6 billion people to severe climate risks like floods, extreme weather and water insecurity. The Intergovernmental Panel on Climate Change ‏(IPCC) warns that exceeding 1.5°C of global warming would lead to irreversible impacts on people, wildlife and ecosystems.

The world’s first universal climate treaty, the Paris Agreement, aims to limit global warming to well below 2°C – with efforts to keep it below 1.5°C. To achieve this, global emissions must be brought to net-zero by 2050. Within the past few years, however, the planet’s temperature increase has come dangerously close to the 1.5°C threshold. It is essential that companies take their responsibility seriously and drive the transformation toward net-zero. 

For Henkel, mitigating climate change is a core element of our climate strategy. To substantiate our strong commitment to the Paris Agreement and to reinforce our strategic positioning as sustainability leader within our industry, we have set ourselves the science-based target of achieving net-zero by 2045. We are convinced that this positive signal will encourage our business partners, suppliers, customers and even competitors to push our industry toward a low-carbon future.

Henkel has defined a net-zero roadmap in 2024, extending its old targets for emissions reduction. The targets are officially validated by the SBTi, a corporate climate action organization that supports companies to set net-zero targets in line with the Paris Agreement. Our science-based near-term and net-zero targets are set according to the guidance, criteria and recommendations of the SBTi Corporate Net-Zero Standard. The emission reduction targets cover all seven greenhouse gases ‏(GHGs) covered by the Kyoto Protocol as well as the respective scopes and categories in which these emissions occur. Our targets are the following:

Our Near-Term Targets:

• Henkel commits to reduce absolute scope 1 and 2 GHG emissions by 42 percent by 2030 (base year 2021)¹
• Henkel commits to reduce absolute scope 3 GHG emissions by 30 percent by 2030 ‏(base year 2021)

Our Net-Zero Target:

• Henkel commits to reduce absolute scope 1, 2 and 3 GHG emissions by 90 percent by 2045 (base year 2021)²

In line with SBTi, we define net-zero as a state of at least 90 percent absolute emission reductions across our entire value chain – thus across the scopes 1, 2 and 3. In addition, the permanent neutralization of any residual emissions is also part of our commitment. This neutralization is necessary to further account for unabated emissions which continue to be released into the atmosphere as we are achieving net-zero. When we enter this phase of neutralization, we will follow the SBTi’s guidelines on permanent carbon removal and storage to do so.

Successful progress toward net-zero will require a holistic transformation of our business model as well as our interactions with business partners, customers and society as a whole. For this reason, Henkel has identified key activity areas along as well as beyond our value chain where we are going to engage with partners to deliver on our emission reduction targets and support the transition toward a low-carbon future.

We will reduce emissions in our direct operations through energy efficiency, renewable energy deployment, renewable energy and fuel sourcing. We will also reduce emissions from upstream and downstream value chain activities by focusing on eco design, low-emission materials, supplier engagement and carbon-efficient logistics.

To achieve our ambitious net-zero target, we aim for at least 90 percent absolute emission reductions through abatement across at least 95 percent of all Scope 1 and 2 emissions and across 90 percent of all Scope 3 emissions. We will follow the SBTi’s guidelines and make use of permanent carbon removals and storage to neutralize any residual emissions at a maximum 10 percent of our total emissions.

Reducing emissions that directly result from our own operations is a key focus for our climate change mitigation actions because we can exert direct influence. Respective measures to reduce these emissions are energy-related and include:

Energy Efficiency

For our operations, we strive to increase energy efficiency by investing in technologies and processes that reduce energy consumption in manufacturing, warehousing, offices, vehicle fleets and R&D centers. Examples include the redesign of manufacturing processes, energy recovery and the renewal of technical equipment. For reducing emissions from our vehicle fleet, we have a global mobility initiative offering flexible and sustainable mobility solutions.

Renewable Energy Deployment

Wherever feasible, we install solar panels and biomass boilers at our facilities to generate clean, renewable energy directly at the source. This contributes to our overall sustainability goals by reducing our reliance on fossil fuels and lowering our operational carbon footprint.

Renewable Energy and Fuel Sourcing

For the energy required in our operational processes, we target the transition to 100 percent renewable energy sources by following best practices from the GHG Protocol. For heat generation, we rely on renewable fuels because the electrification of all of our processes is not feasible. We plan to source biomethane or other renewable fuels to reach our direct emission reductions.

Upstream and downstream emissions in our value chain account for by far the largest proportion of our total emissions. Upstream emissions from the raw materials and packaging materials that we purchase are of particularly high relevance for implementing our net-zero transformation. Downstream activities like logistics, distribution and the end-of-life disposal of our products are further key sources of emission that we aim to address. We cluster our activities into the following key abatement categories: eco design, low-emission materials and carbon-efficient logistics.

Eco Design

Our net-zero transformation requires us to design a low-carbon product portfolio by optimizing the properties and compositions of our products. Two levers hold significant emission reduction potential in this context: format design and packaging design.

Format Design

The optimization of our product formats is a key aspect in designing a low-emission product portfolio. Shifting to more concentrated formulas and more innovative product formats can enable the use of raw materials that generate less emissions when they are made. This will lead to emission reductions in the upstream value chain. More compact product formulas can also support further emission reductions because less packaging material is required and emissions from distribution are lower.

Packaging Design

Innovative packaging designs that enable circularity are highly relevant for our abatement efforts in the downstream value chain. We aim to have 100 percent of our packaging designed for recycling or reuse.¹ This will help us to decrease end-of-life emissions. Developing reusable and refillable packaging solutions for our consumers and customers makes it possible to extend the lifespan of our packaging materials. This leads to less packaging material and a reduction in the related emissions.

_{¹Excluding products where ingredients or residue may affect recyclability or pollute recycling streams.}

Low-Emission Materials

Sourced materials have a high impact on our GHG footprint. For this reason, the transition to more sustainable and low-emission materials is an important requirement for our net-zero transformation. In this regard, three abatement levers are key: supplier engagement, packaging, and raw materials.

Supplier Engagement 

Collaborating with our suppliers is a critical requirement for the successful and holistic transformation of the emissions profile of our sourced materials. For years, our business units have been maintaining close relationships with strategic suppliers and engaging in direct abatement initiatives. This includes developing low-emission raw materials and optimizing process emissions through energy efficiency, renewable energy and further emission reduction measures across the supply chain. In April 2024, we launched a comprehensive engagement program for our suppliers worldwide. It is called Henkel Climate Connect and it aims to scale up our supplier collaboration activities.

To leverage our deeper knowledge of our upstream value chain, we increasingly incorporate emissions data into our initial supplier selection process. This makes it possible to base our supplier selections on strategic criteria that optimize our emissions profile, e.g. by selecting suppliers based on specific geographical considerations.

Packaging 

With our sustainable packaging strategy, we contribute to emission abatement by minimizing the amount of packaging material we use and maximizing the share of low-emission materials – without compromising the quality, performance or safety of our products. 

Our packaging experts are constantly working on innovative and smart packaging solutions to reduce the amount of packaging material we use. To lower the emissions resulting from our packaging materials, it is essential to replace fossil-based virgin raw materials with recycled or renewable alternatives. Additionally, we ensure low-emission energy usage for the production of our packaging materials.

Raw Materials

The raw materials used for the manufacturing of ingredients in our product formulas play a crucial role in our emissions reduction strategy. As we move toward net-zero, we are dedicated to replacing fossil-based raw materials with renewable and recycled alternatives to lower our overall carbon footprint. We accomplish our raw material transition in sequences: 

First, our near-term targets for 2030 put focus on identifying and sourcing low-emission raw materials, for example via optimized energy usage in our upstream value chain. We also drive reduction of fossil fuel dependence by increasing the use of bio-based raw materials ‏(such as biomass) as well as boosting our use of recycled materials, decreasing reliance on virgin fossil resources and enhancing circularity in our supply chain.

Second, our net-zero target for 2045 is driving efforts to advance our transformation through innovative technology-based solutions. Besides continuing to source low-emission raw materials, a greater use of CO₂-utilization technologies to derive raw materials from the chemical conversion of CO₂ will become more important. We are also further expanding our use of recycled feedstocks to minimize waste and resource consumption. As the renewable transformation of the chemical industry progresses, we will gradually shift toward higher-quality biomass feedstocks, ensuring traceability through segregation methods. Additionally, we will strive to minimize any adverse impacts on biodiversity and food chains as part of our responsible sourcing strategy.

Carbon-Efficient Logistics 

Our logistics emissions result from upstream transportation of our sourced materials, as well as from downstream transportation and distribution of our products. To reduce the related emissions, we apply the following two abatement levers: 

Logistics Optimization

The optimization of our logistics and distribution networks is key to reducing fuel consumption and emissions. Central measures here include using digital tools, maximizing load efficiency and minimizing transport distances. Additionally, we will advance nearshoring and local sourcing to further optimize our logistics network.

Low-Carbon Transportation

To successfully lower emissions within our transportation system, we apply the following logic: First, we optimize the mode of transportation in terms of emissions footprint. In line with this, we aim to substitute air freight with ocean freight and switch from road to rail wherever possible. Second, we shift from conventional drivetrains toward sustainable alternatives. This includes the strategic evaluation and application of electric vehicles, bio-based fuel alternatives and green hydrogen for our product distribution.

Emissions generated during the use phase of our products are very difficult for us to influence due to their indirect nature. For this reason, they are excluded from our net-zero target boundary. However, the scale of these emissions is still very significant. To address this point and live up to our responsibility, efforts to reduce these emissions are an important objective of our climate strategy. We approach this from two perspectives: First, product innovations to optimize the properties of our products. And second, customer and consumer engagement to foster energy-efficient and sustainable utilization and disposal of our products. 

Product Innovations:

We aim for our products and technologies to help reduce emissions or, depending on the application, to help avoid emissions from being generated during use by our customers and consumers. Through our brands and technologies, we make products that are used and applied in ways that are linked to the use of energy. This includes detergents, shower gels, hotmelt adhesives and many others. We want to contribute to improving the efficient use of energy by creating innovations that cut energy consumption and the related emission footprint. 

We have set a target of saving 100 million metric tons of CO₂ together with our customers, consumers and suppliers over the ten-year period from 2016 to 2025. We have developed a CO₂-savings portfolio for this purpose. The evaluation of the contributions in this portfolio is based on a company-wide, standardized process that sets out the criteria for the selection of the products and the calculation of CO₂ emissions. In the following, we have summarized some examples of our products and technologies in six groups. These products all contribute to energy and material efficiency. Regarding the products sold between 2016 and 2023, we enabled our customers and consumers to save more than 89 million metric tons of CO₂, or depending on the application, avoid potential emissions. In the future, we want to evaluate additional applications and further expand the portfolio of products that contribute to CO₂ savings in the use phase.

Customer and Consumer Engagement:

Emissions from the use phase of our products are indirect, which means that we are heavily dependent on the application behavior of our customers and consumers in order to achieve reduction in emissions. Therefore, engaging with our customers and consumers and enabling a more sustainable behavior and product use is a central aspect of our emission reduction efforts. In this regard, we build collaborations with our industrial customers to optimize the application process of our products and boost energy-efficiency. Furthermore, we design engagement programs to upskill consumers about energy-efficient use of our laundry & home care and hair & body care products to foster a behavioral change, like our “It starts with us.” campaign.

Our net-zero activities go beyond emission reductions. It also involves taking responsibility for hard-to-abate emissions, while aiming to contribute to societal net-zero by fostering a fair and just transition. 

In line with the SBTi Corporate Net-Zero Standard, we define this approach as “Beyond Value Chain Mitigation” (BVCM) and will follow the respective SBTi guidelines. BVCM encompasses “mitigation action or investments that fall outside a company’s value chain, including activities that avoid or reduce GHG emissions, or remove and store GHGs from the atmosphere.” 

By following a BVCM approach, we aim to accelerate global progress toward net-zero by supporting and collaborating with other economic and social actors to reduce and/or remove GHG emissions, as well as by advocating for supportive public policies that encourage sector transformation. This progress also entails the financial and systemic support of technology, as well as nature-based carbon reduction and removal solutions. These solutions will allow us to build a balanced carbon-credit portfolio that is in line with our holistic approach to climate and nature.

We identify and assess climate-related risks based on the recommendations of the Task Force on Climate-related Financial Disclosures ‏(TCFD).

When assessing the potential impact of climate change on our business activities, we consider the entire value chain – from the raw materials and ingredients we purchase through to the marketing of our products. We draw on the findings of our comprehensive risk and opportunity assessment process. 

Further information can be found in this document:

Together with our customers, consumers and suppliers, we aim to achieve reductions in CO₂ emissions. This includes emissions from the raw materials and ingredients we use. We also want to help customers and consumers reduce CO₂ emissions that are generated when they use our products (called Scope 3 emissions). In addition, we want our products and technologies to help to avoid CO₂ emissions from being generated (in this context called Scope 4 emissions).

The two documents below describe

• the boundaries and the GHG Scope 3 reporting categories relevant for the Henkel scope 3 reporting
• the boundaries and the GHG Scope 4 reporting categories relevant for the Henkel scope 4 reporting

Each document further outlines the methodology behind the relevant reporting categories.