Responsible Sourcing Strategy
Responsible sourcing
Our responsible sourcing approach integrates sustainability across our global supply chain to benefit people and the planet. Through continuous dialog and close cooperation with suppliers, we aim to advance sustainable business practices, processes, and production methods. Guided by a global mindset, our purchasing team applies responsible sourcing principles consistently across all regions, business units, and material groups.
Henkel´s strategy for responsible sourcing builds on robust risk management and compliance approaches. Transparent data on supplier sustainability performance and risks support fact-based sourcing decisions, while also enhancing risk mitigation and strengthening collaboration throughout our supply network. As part of our risk management approach, we continuously improve the transparency of our upstream supply chains with regard to sustainability risks. We also require selected suppliers to be transparent about the emissions levels of the products they supply to Henkel.
Targets & Commitments
At Henkel, supplier selection and development go beyond cost and quality. We systematically evaluate our business partners’ performance in safety, health, environmental protection, social and fair business practices. By embedding these criteria into onboarding, audits, and continuous improvement, building on the Together for Sustainability (TfS) initiative, we raise standards across the industry.
This means that we have a strong foundation of responsible sourcing. To further strive for progress we have developed a concrete target: ≥ 85 % of assessable spend covered by third-party sustainability assessments and audits to advance responsible sourcing standards by 2030. With this target we have established the baseline and shift into deeper, more targeted supplier engagement. We focus on raising maturity where needed, while building strong partnerships that support Henkel’s overall sustainability ambitions. In addition, we are committed to develop our ‘Established Suppliers’ towards a solid sustainability maturity.
We go beyond compliance to drive meaningful impact and change across our entire value chain. In this way, we strive to create sustainable value for our customers. In regard to sourcing, we contribute to climate action by reducing greenhouse gas emissions and advancing low-carbon solutions. We promote the transition to a circular economy by sourcing sustainable materials and packaging, as well as by applying circular principles. Our purchasing department supports social progress by upholding human rights and fostering responsible business practices from across all partners. These efforts are driven by four key enablers: Collaboration, transformation, innovation, and empowerment.
Key enablers for implementation
We accelerate our efforts by intensifying our internal and external collaboration with business partners and key stakeholders. Our global purchasing structure allows us to drive transformation by fully integrating the respective sustainability strategies of the business units and functions in our responsible sourcing agenda. Furthermore, we will focus on sustainable innovations, boosting innovation of digital solutions and on driving the change to a responsible sourcing mindset by empowering internal and external stakeholders through capability building opportunities.
Together for a sustainable supply chain
In 2011, Henkel and five other companies in the chemical industry co-founded the initiative “Together for Sustainability - Chemical Supply Chains for a Better World” (TfS). It is based on the principles of the United Nations Global Compact and the Responsible Care Initiative of the International Council of Chemical Associations (ICCA). TfS aims to harmonize increasingly complex supply chain management processes with regard to sustainability and to optimize dialog among worldwide business partners. Above all, synergies are to be created so that resources can be used more efficiently and with a minimum of administrative effort, not only among the member companies but also with all of our shared suppliers.
At the heart of the audits and online assessments of the TfS initiative is the core idea: “An audit for one is an audit for all!”. Suppliers then only have to undergo one assessment or one audit. The audits are carried out by a number of selected, independent audit companies. For the online assessments, TfS works with EcoVadis, a sustainability performance assessment specialist. Performance is assessed in the areas of management, environment, health and safety, labor and human rights, and issues of ethical corporate governance. Industry wide collaboration increased significantly with TfS membership growing over the years.
Close collaboration with partners
In addition to our work in the TfS initiative, Henkel is a member of AIM-Progress, a forum of companies from the consumer goods industry. The objective here is also to encourage member companies to share experiences in the area of sustainable sourcing and to utilize synergies. The forum also focuses on holding regional supplier events to improve sustainability performance within the value chain.
We are also a founding member of the Action for Sustainable Derivatives (ASD) initiative. It brings together organizations from along the palm oil derivative supply chain to support efforts to increase transparency and promote compliance with NDPE (No Deforestation, No Peat, No Exploitation) principles to positively transform the palm oil industry.
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for the good of generations
for the good of generations
