Committed to a more sustainable and inclusive world
Committed to a more sustainable and inclusive world
Message from Clorox CEO Linda Rendle
Our purpose – to champion people to be well and thrive every single day – drives everything we do, including our impact on the world.
That’s why Clorox’s integrated IGNITE Strategy — our long-term strategic plan that guides our business — includes financial as well as environmental, social and governance goals. We believe ESG drives growth and that our impact leads to long-term value creation. As we mobilize all of our people and all of our brands on this critical work, our efforts are organized around the pillars of Healthy Lives, Clean World and Thriving Communities because we believe these are the areas where can make the biggest difference for our stakeholders.
Healthy Lives: Improving people’s health and well-being
As a health and wellness company at heart, supporting people’s well-being is core to our purpose and ESG goals. It starts with our own teammates. In fiscal year 2021, we achieved our best safety score in modern history with a recordable incident rate of 0.26, which was significantly lower than the 3.3 industry average. And we continue to invest in our people, helping them thrive through benefits and resources that support their physical, mental and financial well-being, as well as their professional growth.
One of the most significant ways we can impact the well-being of our consumers and communities is through our global portfolio – from disinfectants and vitamins, minerals & supplements to water filtration, natural personal care and other essential household products. In addition, we’re making sustainability a strategic part of our brand purpose. That’s why each business now has a strategic sustainability plan outlining its aspirations, goals and actions. To accelerate progress, we’ve established a cross-functional Sustainability Center and common set of tools, including life cycle analyses to better understand product and packaging footprints. The Sustainability Center is structured to uniquely drive our brand-level social and environmental impacts and it is also organized to see across the enterprise for synergies and opportunities. Led by our Chief Sustainability Officer, who is also an experienced general manager, our Sustainability Center drives our efforts to execute corporate and brand sustainability goals.
Because people care about the safety and efficacy of their products, including the ingredients we use, product stewardship is also core to our goals. In 2009, we were the first major consumer packaged goods company to voluntarily disclose our U.S. and Canadian cleaning and disinfecting product ingredients. We have strong safety guidelines and practices that guide product development and we’ve committed to increasing our sales of products with third-party certifications. In the spirit of continuous improvement, we’re also working with the Chemical Footprint Project on best practices related to product ingredient safety. I’m proud that we were recently named an EPA Safer Choice Partner of the Year — the fourth time we’ve received this recognition — for our work promoting safer ingredients and products.
Clean World: Taking climate action and reducing plastic & other waste
People can only thrive if the planet is healthy, which is why we’re taking decisive climate action and addressing plastic and other waste. As we work toward accelerating growth, we have strong aspirations for decarbonizing our business and designing out waste for the well-being of the planet and future generations.
In September 2021, we announced our commitment to addressing climate change by achieving net zero emissions across Scopes 1, 2 and 3 by 2050. Our planned path to that vision includes achieving our 2030 science-based targets to reduce carbon emissions across our operations (Scopes 1 and 2) by 50% and reduce value chain emissions (Scope 3) from purchased goods and services and use of sold products by 25%, all on an absolute basis against a 2020 baseline.
One of the ways we plan to meet these commitments is by maintaining our use of 100% renewable electricity for U.S. and Canada operations, which we first achieved in January 2021. Our new goals build upon the progress we’ve made by exceeding previous GHG emissions reduction targets. We’re proud that we cumulatively reduced our emissions by 52% per case of product sold and 40% on an absolute basis between 2008 and 2018, and we’re motivated to do more.
It also has become increasingly clear that society’s reliance on plastic and other waste is challenging the health of our planet and threatening our natural resources. That’s why our signature IGNITE ESG goal is targeting plastic and other waste through radical material reduction in virgin packaging. As we reduce our packaging, we strive to ensure it is also recyclable, reusable or compostable. Collaboration with the full value chain – suppliers, customers, consumers, governments and municipalities – is key to driving meaningful progress. As a signatory to the Ellen MacArthur Foundation’s New Plastics Economy Global Commitment and a founding member of U.S. Plastics Pact, we are participating in collective, multi-stakeholder approaches that aim to solve systemic challenges.
Thriving Communities: Investing in our people and communities to contribute to a more equitable world
We’re committed to building thriving communities — within our walls and beyond. To enable people to thrive at Clorox, we work to create an inclusive culture where every teammate is respected, valued and seen. We want people to bring their best selves to work so that we can unlock more innovation, better meet consumer needs and ultimately contribute to a better society. That’s why inclusion and diversity is reflected in our values and embedded in our people processes, including our hiring, development and retention efforts. It’s also embedded in how we reward our people, because we value the work our teammates do to amplify our efforts, ultimately contributing to our progress.
I’m proud our board is more diverse than the Fortune 500 average and that women make up nearly 50% of our executive team. While we’re making progress, I want stronger representation at Clorox overall – among genders, people of color and LGBTQ+.
Beyond Clorox, it’s imperative that our surrounding communities are also healthy and thriving. The Clorox Company Foundation recently realigned its purpose and clarified its focus on health security, based on the belief that health and wellness is a basic human right. We will continue our legacy of supporting those in need by promoting community wellness, disease prevention and disaster relief and preparedness.
Similarly, we continue to drive environmental and social responsibility in our supply chain. Our Business Partner Code of Conduct outlines our expectations of business partners on issues including environmental sustainability, responsible sourcing and ethical business practices. In September 2021, we created a new Responsible and Sustainable Sourcing policy and accompanying standards to further advance responsibility in our supply chain, including supporting human rights and partnering with key suppliers to address our Scope 3 greenhouse gas emission reduction goals.
Governance: An unwavering commitment to transparency and stakeholder engagement
Sharing our progress and engaging our stakeholders are fundamental to our ESG commitment. Since 2015, we’ve worked with various third parties to assess our ESG priorities and most material topics to help inform our strategy and reporting. Our sustainability efforts and strategies are managed by cross-functional subject matter experts that are overseen by a standing team of executive leaders who regularly report our progress and discuss risks and opportunities with our board of directors. We report our progress in our annual integrated report, leveraging ESG reporting frameworks. And, in our fiscal year 2021 integrated report, we’re reporting against relevant United Nations Sustainable Development Goals. As a signatory to the United Nations Global Compact, we continue to reaffirm our commitment to its Ten Principles. The Clorox team, including members of our board, regularly engages with our shareholders and key stakeholders regarding our ESG efforts and progress.
Continuing our ESG journey
As we work toward achieving our IGNITE goals, our progress provides a strong foundation for the road ahead. As we look to 2030 and beyond ESG will be a part of how we do business and key to delivering purpose-driven growth.