Entering the fifth year of our 2020 Strategy, The Clorox Company remains focused on what we refer to as good growth — growth that is profitable, sustainable and achieved responsibly.
|1 Engage our people as business owners.||Promote diversity, opportunity and respectful treatment for all people who touch our business.|
|2 Drive superior consumer value behind strong brand investment, innovation and technology transformation.||Make responsible products responsibly.|
|3 Accelerate portfolio momentum in and around the core.||Safeguard families with Be Healthy, Be Smart and Be Safe initiatives.|
|4 Fund growth by reducing waste in our work, products and supply chain.||Shrink our environmental footprint while we grow.|
Driving minority and female representation and maintaining workplace safety.
Inclusion and diversity are top priorities, and we’re making good progress.
Minority and female representation on our board has consistently exceeded that of our peers in the Fortune 500. Women continue to assume senior leadership roles, now making up 36 percent of our Executive Committee, compared with 20 percent four years ago.1 During the same time frame, representation of U.S. minority nonproduction employees and managers has edged upward toward industry averages.2
Promoting safety as a core value remains a key component within our business culture. Employees actively consider safety in what they undertake. As a result, our priority of maintaining a world-class recordable incident rate of less than 1.0 has been consistent throughout the goal period, remaining between 0.52-0.69 from 2013 to today.
For us, employee well-being starts with ensuring diversity and safety. They’re the cornerstones of an engaged workforce that’s focused on growing our business profitably, sustainably and responsibly.1 Past data on Clorox minority and female board members only counted independent board members. To facilitate comparisons to peer companies, Clorox now counts all board members when calculating its diversity data. 2 Benchmarking of Clorox performance on U.S. minority managers and employees reported from fiscal years 2013 to 2016 has been updated to compare with the 2010 Census instead of the 2000 Census. Reviewed by Ernst & Young LLP. Please refer to the Review ReportReview Report.
1 The Willis Towers Watson global high-performance companies norm is based on responses from 142,506 employees at 26 companies. Companies qualify for the norm by meeting two criteria: 1) superior financial performance, defined by a net profit margin and/or return on invested capital that exceeds industry averages; and 2) superior human resources practices, defined by employee opinion scores near the top among the most financially successful companies surveyed by Willis Towers Watson.
2020 Goal 50%
Results to Date 34%
Make sustainability improvements to 50 percent of the product portfolio by 2020.
Since our 2011 baseline, the percentage of our product portfolio with sustainability improvements has increased steadily, from 7 percent in our first year to 34 percent in 2016, our most recent available data.
To meet our 2020 goal, we have established four pathways for improving the sustainability of our products and packaging, allowing each brand to consider which approach makes the most sense while delivering superior consumer value. These options include 1) reducing materials; 2) using more sustainable materials; 3) reducing the amount of water or energy required by consumers; and 4) sourcing materials more sustainably.*
Most of our product sustainability improvements have been achieved through material reduction in the product or package, or both. By reducing materials in our designs, we eliminate the footprint associated with the materials saved and reduce the transportation footprint, as we can load more product onto fewer trucks for distribution.
We’re on track to meet the 2020 goal, with a defined pipeline and path for product sustainability improvements. Looking beyond 2020, we anticipate needing to shift more of our efforts beyond material reduction, as opportunities for further material efficiency gains become more limited.
In Grants to Support Our
Communities Since FY13
Safeguard families with our Be Healthy, Be Smart and Be Safe initiatives.
Every year, we contribute in a meaningful way to support the communities where we live and do business. It’s not about achieving a certain level of activity but about meeting the needs they face from year to year.
Four years into our strategy, we’ve made substantial contributions to the well-being of our neighbors and our planet. From our 2013 to 2017 fiscal years, we’ve given a total of $23 million in grants to support youth education, cultural and civic organizations, health initiatives and more through our nonprofit foundations.
During the same time frame, the company made $44.4 million in product donations, much of which helped in the recovery from natural disasters such as floods in the U.S., an earthquake in Ecuador and disease outbreaks such as Ebola in West Africa, while our brands invested $4.3 million in cause marketing campaigns to make a difference in safe drinking water, childhood obesity and pet adoption, to name a few projects aligned with their purposes.
During a corresponding period from the 2012 to 2016 calendar years, our employees volunteered 543,383 hours of their time to improve their local communities, effort that is valued at $11 million.
Consistent with our values as a company, we will continue to be committed to our communities, helping them remain healthy and safe, as well as supporting educational and cultural initiatives.
Reduce the environmental impact of our operations and improve the sustainability of our upstream supply chain.
As the fifth year of our footprint reduction goal period comes to a close, we have already exceeded our 2020 goals to reduce solid-waste-to-landfill and water use and remain on target to reach our 2020 goals to lower energy use and greenhouse gas emissions. Our facilities are not energy-intensive or water-intensive, making ongoing progress challenging now that we have already reduced energy and water use by 23 percent and 33 percent, respectively, per case of product sold, since establishing our first sustainability strategy in 2008. Nevertheless, we continue to seek innovative ways to reduce our overall operational footprint.
2020 Goal 20%
Results to Date 15%
Reduce energy use by 20 percent per case of product sold versus a 2011 calendar year baseline.
With the exception of a slight setback in 2014, we’ve made steady progress to reduce our energy use during this goal period. Based on our current data, we have now cut our energy use by 15 percent and are three-quarters of the way toward our 20 percent reduction goal by 2020. Some of the recent reductions in energy use on an intensity basis are due to an increase in product volume and the resulting efficiencies of scale.
To achieve our progress, we’ve focused on identifying potential efficiencies in some of our most energy-intensive processes. One area of focus has been the process of converting wood scrap to char, a key ingredient for manufacturing Kingsford® charcoal briquets. The team came up with two ideas to approach our operations differently in order to significantly reduce our footprint: to keep our inventory of wood scrap dry and to reduce the frequency of shutdowns and furnace restarts.
In addition to the newer initiatives, we continue to focus on site-specific efficiency improvements — such as installing LED lighting — identified through our Energy Audit Action Plan created a few years ago.
2020 Goal 20%
Results to Date 18%
Reduce greenhouse gas emissions by 20 percent per case of product sold versus a 2011 calendar year baseline.
We’ve made steady progress to reduce our greenhouse gas emissions during this goal period, with the exception of a slight setback in 2014 due to the increased energy needed to offset the effects of extreme weather. We have now cut our greenhouse gas emissions by 18 percent and have nearly reached our 2020 goal of 20 percent.
We’ve begun use of renewable energy, with solar panels activated at our Fairfield, California, plant and our regional distribution center in Aberdeen, Maryland. Both solar panel arrays were built with a third-party provider as power purchase agreements, or PPAs. That means we didn’t spend company money to build these projects, and the facilities buy the solar-produced power from the third party instead of from the utility.
While both arrays reduce overall greenhouse gas emissions, we do not include those of the Aberdeen RDC in the calculation of our greenhouse gas footprint because the third party retains the renewable energy credit rights in the PPA. The benefits from the Fairfield project will be included in next year’s data, as it came online in early 2017, after our current reporting period closed.
As with our energy use, some of the recent reductions in greenhouse gas emissions on an intensity basis are due to our increase in product volume and the resulting efficiencies of scale. Greenhouse gas emissions are also reduced through facility-based initiatives to install energy-efficient LED lighting.
2020 Goal 20%
Results to Date 41%
Reduce solid waste-to-landfill by 20 percent per case of product sold versus a 2011 calendar year baseline.
Our path to reducing solid waste-to-landfill has been up and down. We’re currently at a 41 percent reduction, more than double our 2020 goal. While we exceeded our goal just two years into the goal period, in the two subsequent years our progress slowed. After an analysis, we determined that a significant contributor was the periodic replacement and disposal of bricks used to line furnaces that turn wood chips into char at our Kingsford plants. We resolved this issue by repurposing the brick to build the base of an onsite access road rather than sending it to a landfill and have targeted similar beneficial reuse opportunities for brick in future years.
Throughout the goal period, we have also identified additional opportunities to reduce waste.
Although we’ve already significantly surpassed our 2020 goal, we’re continuing to identify additional ways to reduce solid waste-to-landfill. Three of our facilities have achieved zero-waste-to-landfill status — our plants in Fairfield, California; Orangeville, Ontario; and, most recently, Rogers, Arkansas — and we remain on target to reach our goal of 10 sites by the end of the goal period.
2020 Goal 20%
Results to Date 21%
Reduce water use by 20 percent per case of product sold versus a 2011 calendar year baseline.
With steady progress throughout the goal period, we surpassed our 20 percent water reduction goal this year, four years early.
To spur further reductions in the back-half of our goal period, we engaged a third party in 2015 and 2016 to conduct water audits for our most resource-intensive plants and identify best practices for saving water. Since taking some initial steps recommended through the audits, and achieving intensity reductions through efficiencies of scale associated with recent volume growth, we accelerated our progress, from a 14 percent reduction in water use in 2015 to a 21 percentreduction in the current year.
Going forward, we believe additional water savings initiatives across the company have the potential to reduce water use by over 30 million gallons per year, particularly through efficiency, recycling and reuse.