Logistics and Transport

Our approach to reducing our logistics footprint starts in the product development stage. This is why we are optimizing our products and the related packaging in terms of weight and volume, whenever it is possible to do so without compromising performance, convenience or stability. More concentrated products and lighter packaging reduce transport weight, which decreases the amount of fuel required during transport and reduces the related emissions. Improving our logistics structures also helps to reduce transport emissions. Our approach takes the location of our production sites into account. For bulkier products, we reduce transport distances and environmental impact by operating regional production sites. For compact products, we leverage efficiencies in production by manufacturing these products centrally whenever possible. For transportation and logistics for finished goods, we focus our efforts on these key levers:

• Optimizing the capacity utilization of all modes of transportation
• Reducing the use of air freight and expanding ocean freight
• Using alternative drive trains
• Expanding intermodal transportation
• Using Digital tools for improved logistics
• Address Mobility under our “Future mobility” Initiative

We leverage these drivers through close collaboration with our suppliers and customers to implement joint logistics projects. We also use advanced digital solutions and alternative propulsion systems for transport. When choosing our transport partners, we consider efficiency, environmental compatibility and safety performance. Relevant criteria are included in our tendering and decision-making processes for the purchase of logistics services.

Henkel is constantly striving to increase truck capacity utilization. Fuller trucks mean fewer trucks on the road, which has a positive impact on CO₂ emissions. We are increasing the capacity utilization on some of the routes used by Consumer Brands by transporting supply loads without pallets. This reduces the number of trucks needed to transport the same volume of goods. The establishment of the new Consumer Brands business unit also makes it easier to combine the delivery of beauty care and laundry and home care products in the same truck. One of the most important reduction measures we are constantly striving for is to increase truck capacity utilization. Higher capacity utilization can lower CO₂ emissions, as fewer trucks are needed to transport goods.

Air freight is one of the most emission-intensive types of freight transport. Ocean freight, on the other hand, is often the least intensive. However, air and sea freight are different traffic flows and cannot necessarily be substituted for each other. Some goods, such as perishable or timesensitive goods, must be transported by air and cannot be transported by ship. Better planning and moving away from a just-in-time approach, however, can make it possible to reduce unplanned air freight and thereby reduce emissions. The North America and EU regions are leading the way in reducing air freight, thanks to improved planning and a focus on reducing domestic air freight.

Alternative types of drive trains are also part of our approach to optimizing transport and logistics with a view to protecting the climate. We are testing the operational capability of vehicles with alternative drive systems such as battery-powered electric vehicles. Hydrogen is also becoming a practical alternative in trucks. In 2023, we carried out a pilot project in cooperation with our long-term strategic partner and supply chain specialist Uton at our Dragon site in China. The aim of the project was to investigate the feasibility of gradually replacing conventional diesel vehicles with hydrogen energy logistics vehicles. In the future, hydrogen-powered vehicles will be used in a shuttle operation between Henkel’s Dragon site and the warehouses, as well as in distribution for certain customers in Shanghai.

Intermodal transportation means the use of more than one means of transportation. At Henkel, this means more of our transports are being switched from road to rail. This process begins with a truck carrying the goods to the nearest rail loading terminal. From there, the goods cover longer distances by train, before a second truck collects the goods at the destination terminal and delivers them to the customer. This allows us to make use of the lower CO₂ footprint of rail transport compared to road transport, since a train emits about one-third of the CO₂ of a truck when transporting the same weight of goods. For this reason, intermodal transport has become a key driver for CO₂ reduction in logistics at Henkel.

Our transport management system systematically captures the CO₂ emissions of our logistics operations and makes our transport planning and implementation even more efficient across all business units and countries. Increased truck capacity utilization and optimized routes are particularly helpful in reducing transport kilometers, cutting fuel consumption and reducing CO₂ emissions. Our progress is illustrated with a digital tool that calculates the environmental impact of transport for all modes of transport based on the DIN EN 16258 standard. Inputs include actual distances based on GPS data, country-specific emission factors, and data from the respective modes of transportation. The combined application of both IT solutions enables us to foster transparency and data comparability across the entire industry, and helps us to track progress toward our emissions reduction target.

Beyond the use of advanced digital tools, alternative propulsion types also form part of our approach to optimizing transport and logistics. We are testing the operational capability of vehicles powered by alternative propulsion systems at our sites. At our headquarters in Düsseldorf, we have, for example, incorporated more than 45 electric vehicles into the internal fleet since 2012 to replace conventional vehicles with internal combustion engines. We have built a corresponding infrastructure with over 228 charging stations in and around the industrial park, twelve of them in cooperation with the utility company Stadtwerke Düsseldorf. Our vehicle policy also gives our employees in Germany the option of driving an electric or hybrid vehicle as a company car. Furthermore, as part of our global mobility initiative, our current car-oriented offer in Germany is being replaced with more flexible, efficient and sustainable mobility solutions for management employees. These include a range of options, including train tickets and bicycles, which will help to reduce our employees’ CO₂ footprint when commuting.