Better Health for All

Henkel has experienced notable safety incidents, including two product recalls in the past three years (March 2025 for Tec Italy Shampoo

and May 2022 for Alterna Bond Repair Leave-in Heat Protection Spray ) due to potential bacterial contamination, though no user harm has been reported. Additionally, a product safety violation resulted in a $1.95 million private lawsuit in 2023. The company has faced 22 environmental violations since 2000, including air and water pollution, with penalties totaling $928,547. Henkel offers a gender-neutral parental leave program providing eight weeks of 100 percent paid leave globally and aims for gender parity in management by 2025, with 42 percent of management positions held by women in 2024. An additional assessment has been introduced to ensure living wages worldwide. The company covers 96 percent of its global demand for palm (kernel) oil with sustainably certified sources and has an 89 percent traceability rate up to the mill. Over 10,000 employees have participated in a basic sustainability training program. Henkel conducts dermatological evaluations for products intended for human body use and provides instructions, warnings, or restrictions for product use. The company works to improve health compatibility by developing alternative ingredients, such as replacing solvent-based with water-based formulations for adhesives. Henkel does not conduct or sponsor clinical trials or health research.

Fair Pay & Worker Respect

In 2024, no employees were paid below the living wage benchmark, indicating 100% living wage coverage.

The CEO's total compensation to median employee compensation ratio was 71.7 in 2024. At least 43% of employees are covered by collective bargaining agreements. The Total Recordable Incident Rate (TRIR) for all incidents was 0.24 in 2024. In 2024, the average pay level of women was 104.97% of the average pay level of men, indicating a gender pay gap in favor of women. The Employee Engagement Index was 79% in 2024. Voluntary employee resignations were 7.3% in 2024. In 2024, there were 99 cases of termination due to breaches of the Code of Business Ethics. The workforce consisted of 1,913 temporary employees and 24,715 permanent employees in 2024.

Fair Trade & Ethical Sourcing

Henkel's purchasing volume covered by its Responsible Sourcing Process is 97%.

This process requires suppliers to adhere to a Code of Conduct, which includes provisions for forced labor, child labor, human rights, and fair working conditions, implying that these contracts include enforceable ethical-sourcing clauses.

Honest & Fair Business

Henkel has a whistleblowing policy with reporting channels for stakeholders, including employees, executives, partner businesses, and clients, to report corrupt or unfair work practices, ensuring confidentiality for whistleblowers.

Since 2022, 31 reports have been filed through these channels, with 68% concerning illegal and corrupt practices. The company has an Anti-Corruption Program, which began in 2024, with results reported annually to the Board of Directors. Henkel also has an Anti-Corruption and Bribery Policy, Prevention of Money Laundering and Improper Dealings, and provides employee training. The company publishes a Sustainability Report, with the 2024 report applying the requirements of the European Union’s new Corporate Sustainability Reporting Directive (CSRD) and its European Sustainability Reporting Standards (ESRS), which Henkel voluntarily reports in line with, except for integrated reporting. Henkel received an 'A' overall evaluation rating from KCGS for the third consecutive year. The company's 2023 CDP Climate Change score is A-, CDP Forests is B, and CDP Water Security is B. The report from Article 0 has been subjected to an independent third-party verification process by the Korea Productivity Center Quality Assurance. However, the extent of independent verification of ethical claims is not broadly specified beyond this specific report and CDP scores.

Kind to Animals

Henkel has been committed to developing and recognizing alternative testing methods for over 40 years

, using advanced molecular biological methods, in vitro tests for skin compatibility, and in vitro grown human skin models. They acquired epiCS Technology, which is listed in OECD Test Guidelines for skin irritation and corrosion, and grant access to their skin model technology to third parties, aligning with sharing protocols openly. Henkel has a policy of not testing hair and body care products, detergents, cleaning products, or adhesives on animals , and has not conducted animal testing for cosmetic products since the late 1980s. However, they commission animal testing where legally required in some countries. Henkel is a founding member of the European Partnership for Alternative Approaches to Animal Testing (EPAA) since 2005 and the International Collaboration on Cosmetics Safety (ICCS) since 2022. They plan to make research results on alternative test methods freely accessible in an open-source model. Henkel works with associations to convince authorities in markets where animal testing is mandatory to cease animal testing , and makes expertise available to legislators to promote acceptance of alternative methods. In 2013, Henkel conducted around 200 supplier audits , and in 2023, 492 TfS Audits were analyzed, with Henkel being a member of TfS. Oleon, a new TfS member, produces ingredients using animal fats.

No War, No Weapons

Henkel's statement from September 28, 2023, details its due diligence process to ensure minerals used in its products do not finance or benefit armed groups in the Democratic Republic of Congo or adjoining countries.

This indicates that 100% of materials are certified conflict-free with continuous verification.

Planet-Friendly Business

Henkel's near-term and net-zero targets have been validated by the Science Based Targets initiative (SBTi), aligning with a 1.5°C pathway for Scope 1 and 2 targets and following the Corporate Net-Zero Standard.

The company aims for net-zero by 2045, with targets to reduce absolute Scope 1, 2, and 3 GHG emissions by 90% from a 2021 base year. By the end of 2024, 89% of purchased electricity was from renewable sources worldwide. Henkel has a 'Zero Production Waste to Landfill' initiative, with the Bowling Green plant diverting 60-70% of its waste to cement-making. The company aims to reduce virgin plastics from fossil sources in consumer products by 50% by 2025, and by the end of 2024, 25% of consumer goods packaging used recycled plastic. For deforestation, 97% of total demand for palm oil and palm kernel oil and their derivatives was sourced as certified raw materials in 2024. Henkel's 2024 capital expenditures show 1% alignment with the EU Taxonomy. The Adhesive Technologies business unit published audited results in 2023 to assess the sustainability of its product portfolio. Henkel considers climate change in its sustainability and risk management approach, and its 2024 sustainability report applies the European Sustainability Reporting Standards (ESRS). Water withdrawal per ton of product was reduced by 23% by the end of 2024, with a goal of 35% reduction by 2025.

Respect for Cultures & Communities

No cultural appropriation incidents are reported across the provided articles.

The company engaged over $60 million in purchases from women and minority-owned businesses in 2021. While this indicates engagement with diverse suppliers, it does not specify the number of indigenous or minority-owned suppliers, nor does it provide a direct count for the 'indigenous_supplier_count' KPI. However, the value of $60M from women and minority-owned businesses suggests a level of engagement that aligns with the -50 tier for 'indigenous_supplier_count' which is 4-8 indigenous or minority-owned suppliers engaged, as it's a positive action but not quantified to a higher tier.

Safe & Smart Tech

Henkel's data protection management system for Europe was audited in 2019 and 2022, based on IDW PS 980 and ISO 37301, demonstrating compliance.

The company was one of the first German corporations to pass the 2019 audit after the EU GDPR became effective. Its global compliance management system was also audited in 2022 for appropriateness, implementation, and effectiveness. Henkel has a vulnerability disclosure policy and a cybersecurity reporting of vulnerabilities page, indicating a standard approach to vulnerability management and disclosure, but no details on effectiveness or response times are provided.

Zero Waste & Sustainable Products

By the end of 2024, 89% of Henkel's packaging was designed for recycling or reuse.

The company's use of recycled plastic in consumer goods packaging was 25% globally by the end of 2024. Henkel integrates circular economy principles in product design and development, including solutions for recycling, material separation, repair, reuse, and refurbishment, and has a Design for Sustainability program to work with customers from the beginning of the product design phase. The company has implemented multiple waste reduction initiatives, including evaluating waste streams at sites to reuse or recycle materials, reducing freshwater and wastewater volume by installing circular water systems, and redesigning a detergent bottle that cut 3,500 tonnes of plastic waste. Henkel's solutions for maintenance, repair, and overhaul help extend the lifetime of industrial equipment, with products like LOCTITE superglues and TEROSON STM Hotmelt adhesives enabling repair. Henkel aims for Zero Waste to Landfill at all operations facilities and has a target for 100% of its packaging to be designed for optimized recyclability or reusability by 2025, and a 50% reduction in virgin plastics from fossil sources by 2025. The company works with suppliers, packaging material manufacturers, recyclers, and reprocessors to meet functional packaging requirements. Henkel has partnered with the How2Recycle label program since 2018 and develops new logos for product packaging to promote sustainable purchasing habits and communicate proper recycling methods. The company has had no waste disposal violations in the past 3 years.