Responsible Sourcing and Sustainability
We have a strong commitment to ethical business practices; treating people with dignity, respect and equal opportunity; and conducting business in a responsible way that promotes good stewardship of our planet. Business partners are expected to comply with our Business Partner Code of Conduct. The Code details our expectations regarding adherence to the Human Rights Commitment and other expectations related to human rights and labor, health and safety, the environment, and business conduct and ethics.
As part of our IGNITE Strategy, we are focusing on climate stewardship as one of our critical environmental, social and governance (ESG) priorities. This focus extends into our upstream supply chain, where we have committed to setting science-based scope 3 greenhouse gas emissions reduction targets that require us to engage heavily with our suppliers to reduce their carbon footprints. This priority is in addition to ongoing efforts to help ensure there is no deforestation in our forest commodity supply chains.
Our responsible sourcing and supply chain sustainability program – including our related commitments and progress – is led by our vice president – Sustainability, with executive oversight by our senior vice president – Chief Product Supply Officer. The Nominating, Governance and Corporate Responsibility Committee (the NGCRC) of our board of directors oversees programs relating to corporate responsibility and sustainability ESG matters. Our full board also reviews and discusses ESG topics regularly – including progress toward meeting our specific ESG goals – and oversees risks, opportunities and strategy related to ESG issues that are priorities for our business such as sustainable supply chain management, product safety and other significant areas.
IGNITE Strategy: Science-Based Climate Action
Clorox believes that climate change poses a serious threat to the environment and society that requires serious action from all sectors. That is why our IGNITE strategy prioritizes science-based climate action as the paramount environmental sustainability goal with our upstream suppliers. A major contributor to our Scope 3 emissions, our supplier greenhouse gas (GHG) emissions footprint is a significant focus area for supply chain engagement as we drive our commitment to setting and achieving a Scope 3 science-based target*.
To help support our ambitions, we are phasing out our proprietary Supplier Environmental Footprint Scorecard utilized in our 2020 strategy and instead partnering with CDP Supply Chain† to engage our suppliers on climate action. By utilizing this standardized industry tool, we hope to simplify the reporting process for our suppliers as well as help support greater transparency and foster collective engagement with supply chains in our industry.
*Will set science-based targets (SBTs) for GHG emissions in coordination with and to be approved by the SBT Initiative over the two years following our commitment in October 2019.
†Clorox is a Supply Chain member of The Carbon Disclosure Project (CDP) a not-for-profit organization running the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts.
In 2020, we asked our top suppliers (representing about 70% of our global spend) to report to CDP Supply Chain. Our focus is on CDP Climate Change disclosure, with an emphasis on our top suppliers reporting their emissions, use of renewable energy, and current and anticipated improvement targets and action plans.
Understanding our suppliers’ footprints, plans and progress on reducing their emissions will help us develop and manage our strategy for achieving a science-based target to reduce our Scope 3 greenhouse gas emissions. Supplier reporting on renewable energy use helps us to track reductions in our supplier emissions through the purchase of low-carbon consumption and assess the level of risk related to fossil fuels in our upstream supply chain.
View our CDP Supply Chain reporting on our Operations page.