Hero: Eco Governance

Eco Governance

Clorox’s eco governance starts at the top. Our Board of Directors Nominating and Governance Committee and the Clorox Executive Committee have oversight of our environmental goals, which are embedded in the corporate strategy. It also includes the Eco Team, made up of people from different areas in the company who developed our 2020 Sustainability Strategy and works with business and functional leaders to ensure we continue making progress against our commitments. We also have an Eco Network of passionate employees who volunteer their time and energy to help sustainability progress.

Organization

The Eco Team works to engage every part of the company in advancing Clorox’s sustainability initiatives. In addition to engaging with the Clorox Board of Directors and our executive committee our business units make eco commitments the Product Supply Organization drives footprint reduction efforts within our operations and our upstream supply chain R&D leads product and package sustainability efforts and our Eco Network employee volunteers champion grass roots eco workplace initiatives. And along the way we seek opportunities to educate all 7700 employees about the importance of working in a more sustainable way.

Eco Org Chart

Clorox Board of Directors Nominating and Governance Committee

The Nominating and Governance Committee oversees Clorox’s environmental matters and compliance and is updated at least annually on corporate responsibility related priorities.

Clorox Executive Committee

( Environmental Sustainability Executive Sponsor: Executive Vice President – Chief Product Supply Officer) The Executive Committee is responsible for executing our business strategy, which includes driving environmental sustainability. Executive compensation is also driven, in part, by delivering on key environmental sustainability goals and other corporate responsibility measures.

Corporate Responsibility Team

(Team leader: Vice President – Global Corporate Communications and Corporate Responsibility)

Environmental priorities are integrated into Clorox’s 2020 Corporate Responsibility Strategy.

Clorox Eco Team

(Team leader: Director – Environmental Sustainability) The Eco Team is responsible for defining, driving and tracking progress against Clorox’s Environmental Sustainability Strategy. This cross functional team leads eco initiatives that focus on operations and workplace, products and packaging, and the upstream supply chain.

Environmental Compliance

  • Clorox Environmental Compliance team owns compliance of Clorox operations.
  • Product Regulatory team own environmental compliance of Clorox’s products and packaging.
  • Manufacturing plant environmental coordinators own local compliance activities.

Operational and Supply Chain Footprint

  • Clorox Product Supply Leadership Team owns the eco impact of Clorox’s operations.
  • Clorox plant managers own plant specific Eco Scorecard performance.
  • The Global Strategic Sourcing group within Product Supply owns sustainability commitments specific to our upstream supply chain.

Product/Package Sustainability

  • Business unit general managers and their teams own the eco impact of Clorox’s product portfolio.
  • R & D Product/ Packaging team executes eco improvements.

Eco Network

Clorox also has a volunteer team of passionate employees called the Eco Network who aim to create a forum for new ideas and help to execute sustainable workplace initiatives.

Environmental Management System

All Clorox facilities follow a customized environmental management and compliance program. Our top-tier environmental management system called Environmental Tracking Reporting and Compliance System (ETRACS) enables us to track report and ensure environmental compliance of our facilities. Site-specific compliance activities driven by this system include all federal state and local permitting requirements. Sustainability activities such as GHG reporting and water usage are also tracked in this system.

ETRACS which is a robust notification-based system provides weekly and monthly reminders and deadlines for environmental compliance tasks and activities. It also facilitates compliance task planning for our environmental coordinators and provides important regulatory compliance deadline information to our site managers. An environmental coordinator at each of our sites ensures that all compliance tasks are completed to meet regulatory requirements.

Clorox is also inspected regularly by federal state and local governmental regulatory agencies that focus on health safety and environmental compliance for all Clorox product lines at all our manufacturing facilities. The majority of these regulatory visits are environmental in nature. ETRACS employee training and thorough record keeping ensure our facilities consistently meet regulatory requirements and help ensure the safety of our employees and surrounding communities.

Strategy

Environmental sustainability is core to the way Clorox operates its global businesses. In fact, sustainability has been identified as one of four significant consumer megatrends that influences the strategic direction of the company. And our eco footprint reduction goals are all embedded in our formal Corporate Business Strategy. Clorox also has an explicit environmental sustainability strategy that guides Eco efforts across the enterprise and that is executed by the company’s Eco Team.

Clorox Eco Strategy

Mission

Be an eco leader within the CPG industry and among consumers

Objective

Make eco core to how we do business to:

  • Enable Clorox’s profitable growth
  • Enhance Clorox’s corporate reputation
  • Build employee pride

2020 Strategies and Goals

  1. Make our product portfolio more cost-efficient and sustainable
    Key goal: Sustainability improvements to 50 percent of product portfolio (vs. 2011)
  2. Reduce our operational footprint
    Key goal: Clorox’s operational footprint intensity reduced by 20 percent (vs. 2011)
  3. Leverage sustainability to protect and grow sales
    Key goal: 20 percent of sales growth driven by eco initiatives
  4. Embed sustainability into the company’s processes and culture
    Key goal: Environmental sustainability significantly contributes to employee engagement
  5. Engage in broader sustainability issues that impact our business
    Key goal: Environmental stewardship reputation is at CPG exemplar level

Integration

Employee Engagement

A robust environmental sustainability strategy and governance structure are key to ensuring progress toward our eco goals. But this is not enough. We also work to engage the entire Clorox organization believing everyone has a role to play. Corporate eco priorities are integrated into our individual business units and throughout our company by the following processes:

1. Eco Assessment Process:

The Eco Team has worked with each of the company’s business units to complete a comprehensive assessment that identifies sustainability issues and opportunities for each business unit. We systematically evaluated the environmental profile as well as the environmental footprint reduction and revenue generation opportunities for each of our businesses. We looked at the environmental impact across the lifecycle of a product line identified information gaps in our environmental knowledge base and evaluated the environmental interests of stakeholder groups as they apply to a given business.

2. Annual Eco Commitment Process:

Annually the Eco Team works with our business units and functions to develop formal documented sustainability commitments such as sustainable product improvements packaging reductions and process and efficiency improvements that reduce Clorox’s overall environmental footprint. They also include commitments to drive transparency and progress in the sustainability of our upstream supply chain.

3. Embedding Environmental Sustainability Into Company’s Core Business Processes:

  • Manufacturing: Every Clorox manufacturing facility has specific goals to reduce its greenhouse gas emissions energy and water use and solid waste to landfill. Our performance is tracked and captured on our eco scorecard.
  • Procurement: We’ve embedded sustainability criteria into our core procurement processes including our Business Partner Code of Conduct supplier selection and business award processes and our own internal strategic sourcing approach. We also use a supplier scorecard to track and measure the transparency and sustainability progress of our Top 100 suppliers (which represents 70 percent of our supplier spending).
  • R&D: We’re embedding eco criteria into our upstream product and package design processes and integrating sustainability goals into our R&D strategies to improve the sustainability of newly designed and redesigned products and packaging.li>
  • Cost Savings Program: A companywide cross-functional task force applies a sustainability lens to our products packaging operations and workforce processes to identify joint cost and sustainability wins.
  1. ECO GROUNDING
    1. PRODUCT LIFE CYCLE FILTER
      1. Raw & Pack
      2. Manufacturing
      3. Distribution
      4. Consumer Use
      5. End of Life
    1. STAKEHOLDER FILTER
      1. Consumer
      2. NGOs
      3. Customer
      4. Competition
      5. Government
      6. Investors
      7. Employees
      8. Media
      9. Community Groups
    1. BUSINESS IMPACT FILTER
      1. Risk Mitigation
      2. Footprint
      3. Growth
  2. ECO RECOMMENDATIONS & ACTION PLAN

Product Supply Organization

Our Product Supply Organization (PSO) is fully engaged in reducing the footprint of our manufacturing and distribution operations and works to encourage our suppliers to reduce their footprints. PSO worked closely with the Eco Team to set all of our publicly shared GHG emissions energy and water use and solid-waste-to-landfill reduction goals. These goals cascade to individual manufacturing plants via an environmental scorecard and PSO is responsible for developing and implementing these plans.

Building a Culture of Sustainability

Employees are encouraged to participate in Clorox’s sustainability journey and apply an environmental sustainability lens to everyday decision-making and planning processes.

Corporate responsibility including sustainability initiatives and policies is a priority topic for our employee communications. Through our employee intranet and corporate responsibility website employee magazines informal brown-bag lunches and speaker events we reinforce the message that sustainability is core to how we do business every day. We also encourage employees to apply this to their personal lives. For example employees can reduce their travel footprint by providing incentives like commuter programs that enable them to use pre-tax dollars when they take public transportation or carpool.

Clorox is fortunate to have a passionate Eco Network of employee volunteers who help to generate ideas and drive sustainable workplace initiatives.

For example employees in Colombia have helped plant 350 trees as part of a carbon compensation program in which close to 3800 trees will be planted in protected natural forests by the end of 2015. Over a 20-year period these trees will offset the equivalent of 767 tons of carbon dioxide or 100 percent of the annual GHG emissions from Clorox’s two manufacturing sites in Colombia.

Earth Day Celebrations

Earth Day is important at Clorox with celebrations occurring at our facilities around the world. Such events organized by each site and often led by our Eco Network have included dumpster dives recycling launches eco education programs eco pledges site beautification efforts and community outreach events. These celebrations have also encouraged employees to reduce their personal carbon footprint at work and at home by creating awareness and use of carbon-reduced commuting options more efficient lighting teleconferencing technology that reduces business travel and alternatives to printing documents.

More recently we introduced an Earth Day employee pledge program. We encourage employees to commit to changing at least one personal behavior for one week leading up to Earth Day with the goal of creating awareness that leads to more sustainable long-term lifestyle choices. Our company’s leaders set the example as they share their pledges at the start of the pledge drive. In 2014 through these pledges employees reduced their collective carbon emissions by 200000 pounds water use by 2.5 million gallons energy use by 30 million Watt hours and waste to landfill by 12500 pounds over the one-week period.

  • The Costa Rica team cleaned up a polluted beach.
  • The Aberdeen Maryland team cleaned up the area surrounding our facility’s property.
  • The Clorox Chile Green Team as part of their 2010 Earth Day celebration planted trees and grass at their local facility.

Celebrations organized by each site have included dumpster dives recycling program launches eco education programs eco pledges site beautification efforts and community outreach events. These events have also encouraged employees to reduce their personal carbon footprint at work and at home via carbon-reduced commuting options better lighting options use of technology to reduce business travel and ideas for reducing paper consumption in our offices.