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Clorox Announces Environmental, Social and Governance Goals

Article-Clorox Announces Environmental, Social and Governance Goals

CFO Twitter Image Clorox Announces Environmental, Social and Governance Goals
The ESG goals build on the foundation of Clorox’s 2020 Strategy.

Organized around the themes of planet, product and people, Clorox announced its new environmental, social and governance (ESG) goals pursue innovative ways to meet consumer needs, help address some of the planet’s most pressing environmental challenges, do more with less and do more to create value for all stakeholders.

Planet: Clorox’s signature goal aims to reduce the virgin plastic and fiber in its packaging by 50 percent by 2030 and to make all packaging 100 percent recyclable, reusable or compostable by 2025. Among its other planet goals are climate stewardship commitments, which include plans to achieve 100 percent renewable electricity in its operations in both the U.S. and Canada by 2025 and to slash its greenhouse gas emissions (GHG) by pursuing science-based GHG targets across its operations and value chain. Operational leaders have been designated to ensure full integration within the company’s businesses.

Product: Clorox said it will work with others to advance the science behind alternative approaches to animal testing. The ultimate goal is to eliminate U.S. Environmental Protection Agency regulations mandating such testing for disinfecting products. The company will further enhance its long-standing commitment to ingredient transparency and its chemical management practices in two ways: through a cleaning product chemical footprint reduction program with annual progress reports and by publicly sharing a restricted substances list for its domestic retail cleaning products in calendar year 2020.

People: Through its natural personal care, dietary supplement and cleaning product brands, Clorox said it will promote consumer wellbeing through an enhanced wellness platform. Fostering total wellbeing—financially, physically, professionally, socially and spiritually—is the focus for employees and their families. Clorox explained it will support this strategy with initiatives such as financial literacy programs to enable retirement readiness and its ongoing commitment to safety. An even sharper focus on inclusion and diversity includes gender and ethnic minority pay equity, among other priorities.

“The company’s integrated IGNITE Strategy is supported by an unwavering commitment to strong corporate governance, overseen by the board of directors, including compensation awards tied to elements of the ESG goals for members of the Clorox Executive Committee, including for the chair and CEO,” according to the company.

IGNITE’s ESG goals build on the foundation of Clorox’s 2020 Strategy. From July 1, 2013, through June 30, 2019, Clorox achieved the following ESG milestones:

  • Increased percentage of product portfolio with sustainability improvements to 58 percent, surpassing its 50 percent goal two years ahead of 2020.
  • Exceeded goals to reduce GHG emissions, water use and solid waste-to-landfill by 20 percent at least two years before 2020 and remains on track to reduce energy use by 20 percent by 2020.
  • Maintained employee engagement at levels higher than comparable companies in the consumer packaged goods industry and consistent with or slightly above some of the most highly regarded companies in the world (86 percent to 88 percent).
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