REDUCING INEQUALITIES

We are creating an environment of trust in our company that is open to ideas and innovations, and that enables decision making. This is only possible with a thriving leadership culture. We are committed to communicating openly with our employees and their representatives, and to pursuing ongoing, constructive dialog while promoting feedback. Our objective is to inform and involve our employees in a transparent and Thriving Communities Trusted Partner Indicators timely manner. This helps us to meet the challenges and changes in society, the economy and politics, and to continue to develop so that we remain competitive in the future. With our Leadership Commitments, we want to establish a corporate culture in which employees show entrepreneurial spirit and initiative, think proactively, put team spirit into practice and take responsibility – no matter whether they lead a team or are a member of a team. Henkel’s dedicated communication platform offers a range of workshops, learning and reflection elements that promote sustainable cultural change at our company and help anchor the Leadership Commitments in our behavior.

Diversity and Inclusion are deeply embedded in our corporate culture. We are convinced that a diverse workforce, as well as an open and appreciative corporate culture, are important success factors in a globalized world. Different perspectives, cultures and ways of thinking enable us to meet the needs of our increasingly diverse markets and stakeholders with creative and innovative products, services and solutions. We foster an inclusive corporate culture across the company by offering a variety of programs and training opportunities that deepen the understanding and appreciation of diversity. To help prevent discrimination, harassment, or bullying in any form during recruitment, professional development, and promotion, we actively raise awareness of the many dimensions of diversity. It is the diversity of our around 47,200 employees that makes us strong and successful. That is why we want to create an inclusive working environment in which every employee is valued and individual performance is recognized. On principle, we also fill our job vacancies exclusively according to ability, potential and performance. Inclusive language is also consistently used in our job postings to appeal to and attract diverse talent. We do not tolerate discriminatory behavior when we hire new employees or in our daily interactions with each other. In addition, we offer a variety of training materials and courses for employees and managers to support them, building inclusive skills and deepening the understanding of the topics about diversity. These are topics such as disability and inclusion, generations and different kinds of bias in the workplace and everyday life ‏(for instance, bias related to gender, ethnicity and affinity).

The Henkel Management Board bears overall responsibility for our sustainability concepts and policies. This includes oversight about strategies and topics like diversity and inclusion, fair working conditions and health and safety. The global or local process owners for each topic, under the leadership of the Human Resources Executive Committee, are responsible for developing and managing concepts that relate to our own workforce. They ensure the implementation of relevant measures based on company-wide standards, targets, and action plans. The Human Resources Executive Committee continuously monitors personnel-related matters, and the Management Board member responsible for Human Resources, Infrastructure, and Sustainability regularly reports to the Management Board, the Shareholders’ Committee and the Supervisory Board. Relevant personnel-related compliance matters are reviewed by the Compliance & Risk Committee.

Trusted cooperation with employee representative bodies is a key element of our corporate culture. An in depth exchange of views and consultations with our management takes place at the operational level, for example with the local Works Councils, as well as across organizations with trade unions. We keep our employees informed through various formats of social dialog, including information about the corporate strategy. We provide our workers’ representatives with timely and detailed information on key topics such as the corporate strategy. Alternative mechanisms are in place to facilitate dialog and exchange about working conditions in countries where employee representation is not established or where employees are not covered by a collective bargaining agreement. Examples include employee assemblies or employee committees. These serve as voluntary, informal tools that enable close dialog with management. In this way, we can communicate with our employees, incorporate their perspectives at an early stage, and shape future topics together. It also helps Henkel proactively prevent conflicts of interest and strengthens employee identification with the company.

Preserving jobs and dealing with necessary structural changes responsibly are important to us. In order to secure Henkel’s competitiveness, we continually adapt our structures to market conditions. If jobs are affected, we enter into solution-oriented dialogs with employee representatives before actions are taken. In doing so, we follow all applicable codetermination legislation and apply the required procedures for each action that affects employees. To date, we have been able to manage necessary restructuring measures through socially compatible solutions while reconciling interests. The actions involved Indicators range from special semi-retirement models and early retirement, to support with professional reskilling and refocus.

At Henkel, we deeply value the contributions of our global workforce. Recognizing and rewarding our employees appropriately is a key part of our corporate culture and essential to our long-term, sustainable success. Our compensation philosophy is grounded in fairness, transparency, and market competitiveness, with a strong commitment to equal pay for equal work.

Please find more information about our fair and transparent working conditions in our Sustainable Impact Report 2025.

Social and political discourse is increasingly centered on how businesses fulfil their responsibility to respect human rights and exercise appropriate due diligence. Beyond national and international legislation, the link between business and human rights constitutes an essential part of corporate responsibility and reflects stakeholder expectations, with accompanying demands for greater accountability regarding their actions. Henkel has a clear policy of doing business in an ethical and legal manner. This is inseparably linked to our commitment to respecting internationally acknowledged human rights.

As early as 1994, Henkel’s Mission and Principles document emphasized that respecting social values and standards is an integral part of our company policy. Since then, we have developed and adapted a comprehensive set of codes, standards and processes to provide our employees, customers, suppliers, investors and the communities we operate in with a clear definition of the ethical and social values we uphold – including human rights expectations. In 2000, we also intro duced our Code of Conduct, including a clear and proactive commitment to support human rights: We expect our employees to respect local customs, traditions and social values, and to respect human rights for a free and fulfilling life. We underscored our commitment to human rights when we joined the United Nations Global Compact. Henkel has been a signatory to the UN Global Compact since 2003. We still refer to this commitment today as a fundamental element of our Code of Conduct and provide details of it in our Code of Corporate Sustainability, as well as in our Social Standards and SHE Standards. In addition, our Policy Statement describes our corporate due diligence processes to address human rights and environmental risks in accordance with the German Supply Chain Due Diligence Act. 

All processes are based on and set in line with Henkel’s various comprehensive Codes and Standards, as well as informed by international standards such as the OECD Guidelines and the United Nations Guiding Principles on Business and Human Rights ‏(UNGPs). We closely track human rights related developments at both global and national level, to support us on the design of appropriate due diligence measures. Our implementation of due diligence obligations is guided by the UN Guiding Principles on Business and Human Rights. In addition, the OECD Due Diligence Guidance for Responsible Business Conduct acts as a benchmark for our approach, which we continuously review and develop as necessary. In addition, the OECD Due Diligence Guidance for Responsible Business Conduct acts as a benchmark for our approach, which we continuously review and develop as necessary. In this way, our due diligence approach to respecting human rights covers the following key elements:

1. Embedding human rights in policies and systems: 

Henkel’s commitment to human rights is embedded in our corporate values and governance. Our approach is grounded in internationally recognized standards. We also participate in global and industry initiatives such as Together for Sustainability ‏(TfS) and the Consumer Goods Forum. As part of our governance we appointed a Human Rights Officer and established a cross-business unit and cross-functional Human Rights Office. Our codes and standards cover a wide range of topics including working hours, occupational health and safety, data protection, non-discrimination, fair working conditions, freedom of association and collective bargaining, and zero tolerance of child and forced labor. The right to associate freely and bargain collectively is communicated actively on the local level ‏(e.g. through staff trainings). We have formulated the codes and standards according to the expectations relevant to our specific business. We revise the documents on a regular basis to conduct our business in a way that reflects our commitment to support and respect internationally proclaimed human rights. Internally, we promote awareness of our obligation to respect human rights by integrating relevant content into eLearning courses and training sessions attended by our employees. We are in constant dialogue with external stakeholders on human rights issues and actively participate in industry initiatives.

2. Identifying and assessing risks: 

We conduct regular risk analyses to identify and prioritize human rights and environmental risks in our operations and supply chain. These analyses consider severity, likelihood, and contextual risk factors. Our early warning system evaluates risk potential in our procurement markets and value chains, focusing on high-risk countries and sectors. This enables us to define priority areas and tailor our preventive measures accordingly.

3. Preventing and mitigating risks: 

Based on our risk assessments, we implement targeted preventive measures, including training, stakeholder collaboration and audits. We address specific risks such as palm-based raw materials and conflict minerals through responsible sourcing practices. For palm oil, we align with Roundtable on Sustainable Palm Oil ‏(RSPO) principles and collaborate with stakeholders across the value chain. For conflict minerals, we require our supplier companies to comply with the requirements of the applicable legal frameworks for conflict minerals. Suppliers must provide documentation proving that all materials they supply are conflict-free and that human rights are respected.

4. Tracking implementation and results: 

We monitor implementation through a comprehensive audit and evaluation program covering our sites, suppliers, and logistics centers. Audit findings are reported to Henkel’s Management Board and inform continuous improvement. Our Human Rights Office, Corporate Audit, and Compliance teams work together to ensure effective follow-up and accountability.

5. Enabling remedy and complaints mechanism: 

Henkel employees and stakeholders ‏(e.g. customers, suppliers, service providers), as well as anyone else affected by Henkel’s business activities, can report potential misconduct via our whistle blowing system. We have established clear due diligence and compliance processes to identify and assess the potential adverse impacts of our business activities, based on our risk analysis. Where necessary, we ensure that access to remedy is established and accessible.

6. Communicating progress: 

We report regularly on our due diligence efforts; in 2023, as part of our annual Sustainability Statement, available on our website. Compliance issues and audit results are communicated to the Management Board, Supervisory Board, and Shareholders’ Committee, supporting transparency and oversight. 

To identify, prevent or mitigate human rights and environmental risks, Henkel has established a companywide risk management and due diligence process. We have been continuing to add more depth to our approach and as of 2022, we have established a cross business unit and cross-functional Human Rights Office to oversee our due diligence processes. The coordination and project management of the processes runs through a Human Rights Coordination Panel, and the implementation of the processes is carried out by the members of the panel and their teams. By expanding and further formalizing our activities we aim to drive forward our commitment to due diligence. Please find more information about our commitment to respecting human rights in our position on Human Rights and Social Standards and our Human Rights Policy Statement.