In 1983, Henkel became the first company to offer a phosphate-free detergent. Since then, all product divisions have embraced an environmental leadership strategy and the company now offers a wide range of lower impact cleaning and adhesive solutions. Products include bio-based detergents and adhesives, which reduces Henkel's reliance on fossil fuels, as well as potential environmental health hazards. More than two-thirds of Henkel's product formulations, including soaps, shampoos, and shower gels are based on renewable raw materials. Henkel has developed a tool, known as the Value Calculator, that helps to quantify potential savings in the consumption of energy, water, and raw materials, and to improve customers' processes.
The company's greatest challenge may be to educate consumers about the environmental and health benefits of using its products correctly. For example, Henkel develops detergent products that are effective in cold water and can be used in smaller doses. However, if consumers continue to use large doses and high temperatures due to lack of information, the environmental benefits of the products are lost. While the company's greatest climate change impact is associated with how its products are used, Portfolio 21 recommends that Henkel also develop a clear strategy to reduce its direct greenhouse gas emissions.
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 9/30/11 and may not reflect current opinions or subsequent events.