Thriving communities

Responsible & sustainable sourcing

Responsible & sustainable sourcing

We recognize that everything we source – including our ingredients, packaging manufacturing, distribution and services – has environmental and social impacts. That’s why responsible and sustainable sourcing is so essential to our efforts to create a clean world, healthy lives and thriving communities.

We maintain 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. We ask for the same of our business partners, who are comply with our Business Partner Code of Conduct. The Code details our expectations regarding adherence to our Human Rights Commitment and other expectations related to human rights and labor, health and safety, the environment, and business conduct and ethics.

Our Responsible and Sustainable Sourcing Policy translates our BPCoC into specific requirements for our suppliers. It is accompanied by three standards focused on responsible sourcing, sustainable sourcing of raw materials, and carbon reduction in our supply chain. The carbon reduction standard is rooted in our commitment to reduce greenhouse gas emissions in our supply chain (scope 3) through supplier engagement and by tracking supplier progress against targets, in line with supporting our science-based targets.

Governance

Governance

Our responsible and sustainable sourcing program — including our related commitments and progress — is led by our vice president of product supply operations 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 environmental, social and governance (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, climate stewardship, product safety and other significant areas.

Ethical practices

Ethical practices

Our sustainability strategy covers how we work with our business partners on key issues such as ethical business conduct and practices. We are committed to driving environmental and social compliance, workplace safety and quality assurance, as these are all integral to the long-term success of our company and our partners. We also have grievance mechanisms available, including the Clorox compliance hotline, to ensure that individuals have a forum to anonymously raise concerns about compliance with the standards related to our Codes of Conduct.

Clorox’s formal risk assessment and auditing program for our direct material suppliers helps to identify higher risk suppliers and address concerns regarding adherence to the principles described in the Clorox Business Partner Code of Conduct. It also encourages suppliers to apply these same standards to their supply chains.
 

As part of the program, we conduct an annual assessment of our direct material suppliers using several criteria to identify suppliers at higher risk for social and/or environmental sustainability issues. We leverage our membership in Sedex, a nonprofit organization with a globally recognized audit methodology to help ensure sustainable business and responsible sourcing practices, to audit higher risk suppliers. Suppliers are required to conduct or share their most recent Sedex Member Ethical Trade Audit (SMETA) four-pillar audit or approved equivalent using the AIM-Progress Mutual Recognition Framework*. The audits, conducted by an independent third party, assess suppliers’ activities in the areas of labor rights, health and safety, environmental sustainability and business ethics.

For a supplier to remain in good-standing with Clorox, it must appropriately address any non-compliances identified during an audit in a timely and satisfactory manner.
 
* Clorox participates in n AIM-Progress and co-leads the organization’s Mutual Recognition work. AIM-Progress is a forum for leading consumer goods manufacturers and suppliers that drives collaboration to positively impact people’s lives and ensure respect for human rights by improving responsible sourcing practices, building supply chain capabilities, sharing ethical sourcing audits and collaborating on human rights.

To further our commitment to eradicate modern slavery and human trafficking in our global supply chains, we annually provide training to all global employees to assist in identifying and addressing potential risks of slavery and human trafficking in our supply chain. Additionally, for some supply chains, we assist suppliers in developing their own training and risk mitigation programs to combat human trafficking and slavery in global supply chains. Additional information about our efforts can be found in our Modern Slavery & Supply Transparency Statement and our California Transparency in Supply Chains Act Statement.

We conduct annual assessments of our supply chain related to the use of conflict minerals (tin, tantalum, tungsten and gold). Based on these assessments, we determine and report whether the covered minerals, which may be necessary to the functionality or production of our products, were acceptably sourced from recycled or scrap sources in the Democratic Republic of the Congo (DRC) region; or have not originated in the DRC or adjoining countries. For a full explanation of our country of origin assessment, see our SEC Form SD Filing.

Sustainable sourcing

Sustainable sourcing

Forest commodities

Forest commodities

In looking at the forest commodities in our supply chain, we’ve identified wood-based fiber use and sourcing for our packaging as the areas where we can have the greatest impact on reducing the pressure on natural forests. We also recognize that responsibly sourcing palm oil ingredients plays a key role in protecting human rights while conserving the environment, including our forests.

Clorox is committed to solely using recycled or certified virgin fiber in our primary and secondary packaging. Our strategy to minimize the impact of our fiber sourcing starts with reducing the amount of fiber we use. Next, we strive to maximize recycled fiber to meet the majority of our needs

In 2020, 99% of the fiber used in the packaging we purchased was recycled or certified virgin material, with 53% recycled fiber and 46% virgin fiber from certified sources.

Certifications for the volume of virgin material in the packaging we purchased included FSC (63%), SFI (36%), and PEFC (1%). We’ve made great progress in our commitment to recycled or certified virgin fiber, and we continue to work toward finding innovative ways to reduce the environmental impact of our fiber-based packaging as part of IGNITE, where we’ve set a goal for 50% combined reduction in virgin plastic and fiber packaging by 2030.

Learn more about our sustainable packaging goals in the Clean World section of our website.
 
In addition to packaging, we use wood-based fiber in some of our products — namely Clorox® disinfecting wipes, Clorox® compostable cleaning wipes, Burt’s Bees® towelettes and Burt’s Bees® baby wipes. Although we don’t purchase this fiber directly and not all suppliers provide the certification chain of custody, we contacted our suppliers and approximately 98% of the tree-based material in our wipes is “certifiable” because it comes from certified sources (60% FSC and 37% PECF or SFI).

Burt’s Bees’ focus on resilient supply chain and communities

Burt’s Bees’ focus on resilient supply chain and communities

With a longstanding history in making a positive impact on its communities, in fiscal year 2021, the Burt’s Bees brand announced it would accelerate efforts to improve sourcing practices and uplift communities who produce their most valued ingredients—such as beeswax and shea butter. The brand has already impacted over 20,000 livelihoods through a combination of Responsible Sourcing Assessments, third-party audits, and their Global Supply Chain Investment Program. By 2025, it will more than double its efforts—impacting 50,000 livelihoods through:

  • 20 Global Supply Chain Investment Projects that help safeguard access to clean water, support women’s and children’s empowerment, and promote health, safety and biodiversity.
  • Responsible Sourcing Assessments and third-party audits to help ensure the wellbeing of workers, including upholding human rights along with the highest health, safety and labor standards and practices, as well as business ethics and environmental protection.

To date, Burt’s Bees has visited 115 sites in 25 countries to trace and monitor raw materials—including almost all wax (96%) and butter (97%) sources—and nearly half of all of directly purchased wax, butter and oil sources combined globally. As a founding member of Global Shea Alliance, the brand’s investments have supported women in shea through new facilities, training programs, and cooperative registration in West African Shea communities. And though Burt’s Bees sources most of its mica domestically, it has also helped establish the Responsible Mica Initiative, and worked with partners to develop the Sustainable Mica Policy and Framework Vision to improve supply chain practices in India.

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