IGNITE Strategy

Building on our previous 2020 Strategy, IGNITE aims to strengthen our advantage through strategic business choices and fully integrated environmental, social and governance goals to drive Good Growth. With people at the center, the IGNITE strategy is focused on driving growth and delivering value for both shareholders and society.

IGNITE STRATEGY FINANCIAL GOALS

GROW Net Sales
+2% to 4%
expand EBIT Margin
+25 to 50
Basis Points
DELIVER Free Cash Flow
as % of Sales
11% to 13%
Strategic Choices Content is Open

FUEL GROWTH

Widen the funnel on how we deliver cost savings, leveraging technology and sustainability to generate fuel
for growth.

REIMAGINE WORK

Galvanize our people with a bolder, more inclusive workplace in which we simplify our operations, tap technology and move more quickly to drive growth.

INNOVATE EXPERIENCES

Turn data into insights to build purpose-driven, personalized brands and deliver bigger, stickier innovation platforms while enhancing consumer shopping experiences — allowing us to better serve people.

EVOLVE PORTFOLIO

Broaden our playing field in and around our core business, emphasizing consumer megatrends, and continue to lean in to enhanced wellness and natural personal care.

PLANET

Ambition:

Be a leader in environmental sustainability, with a focus on plastic and other waste reduction and science-based climate action.

Plastic and Other Waste Goals:

  • 50% combined reduction in virgin plastic and fiber packaging by 2030.
  • 100% recyclable, reusable or compostable packaging by 2025.
  • Double plastic PCR in packaging by 2030 (+50% by 2025).
  • 100% global facilities zero waste to landfill by 2030 (plants by 2025).1

Climate Stewardship Goals:

  • Set and achieve science-based targets to reduce greenhouse gas (GHG) emissions in our operations (Scope 1 and 2) and across our value chain (Scope 3).2
  • 100% renewable electricity in the U.S. and Canada in 2021.

People

Ambition:

Help our consumers and employees through purpose-led choices that enhance well-being.

Consumer Goals:

  • Increase well-being (measure: number of our wellness-related product categories in U.S. homes).

Employee Goals:

  • Enhance financial literacy to enable better planning and superior retirement readiness (measure: income replacement ratio).
  • Set targets related to manager capabilities, working environment, and health and wellness outcomes.
  • Maintain recordable incident rate of <1.0 with a comprehensive safety management effort striving for an injury-free workplace.
  • Ensure gender and ethnic pay equity.
  • Achieve gender and ethnic minority representation targets.
  • Achieve inclusion index3 targets.

PRODUCT

Ambition:

Be a leader in responsible product stewardship, with a focus on progressive actions to enhance our own and consumer packaged goods industry practices.

Product Advocacy Goals:

  • Advance the science behind alternative approaches to animal testing, with the vision of eliminating EPA testing requirements for disinfecting products and replacing them with non-animal alternatives.

Ingredient Management Goals:

  • Reduce the chemical footprint of cleaning products, with progress detailed through annual reporting.
  • Share restricted substances list for domestic retail cleaning products.

Transparency Commitments Goals:

  • Increase reach of SmartLabel tool and expand scope of consumer-meaningful information.
  • Aggressively increase third-party product certifications.

GOVERNANCE

Ambition:

Enhance our leadership in ESG through an unwavering commitment to strong corporate governance and ESG performance overseen by the board of directors.

Goals:

  • Tie executive compensation awards to select ESG goals.

PEOPLE AT THE CENTER

Putting people at the center of everything we do — a focus of our IGNITE strategy — was key in enabling us to serve our consumers and communities during the pandemic. In order for our teams to address unprecedented demand for our products, we needed to focus on their safety and well-being. We enhanced benefits for all our teammates, including a $1 million Employee Emergency Relief Fund covering incremental child care and medical expenses and an emergency time-off program to help parents navigate school closures and other absences related to COVID-19. At all our facilities worldwide, we rolled out enhanced infection prevention measures and offered increased pay and special incentives to our on-site teams who continued to make and ship our products during shelter-in-place orders. Based on survey results, 88% of employees felt their health and well-being were top priorities for the company.

  1. Where infrastructure allows.
  2. Will set science-based targets for GHG emissions in coordination with and to be approved by the SBT Initiative by October 2021.
  3. A composite score for a set of survey questions we ask our employees, benchmarked against industry and/or other norms.

REIMAGINE WORK

IGNITE at Work

Well before circumstances forced us to streamline production in order to meet unprecedented demand, we had started working on ways to simplify our portfolio and focus on what consumers really want. During COVID-19, this work accelerated. Our Cleaning Division reduced the total number of SKUs while increasing overall productivity – making 100 million more disinfecting units in FY20 compared to FY19, a 50% increase.1

1 First half of CY20 versus same period in 2019.

REIMAGINE WORK

IGNITE at Work

Through technology, work that was once done only in person is now being done remotely. We began managing plant trials using augmented reality glasses, which share data directly to laptops and phones, while communicating with counterparts in the Product Supply Organization using FaceTime. We used modeling and simulation to indicate fill heights for vitamin, mineral and supplement products based on packaging die lines without the need to physically run trials as well as to improve operating efficiency, product quality and capacity at other plants.

REIMAGINE WORK

IGNITE at Work

Brita’s marketing team reduced turnaround time for new marketing content 55% by shrinking work into small, iterative learning cycles and pushing down decision-making to employees closest to the information. Previously, 12- to 18-month plans were developed before execution. Today, the team is breaking planning into smaller increments aligned with specific needs and deliverables, reducing time from planning to execution from 16 weeks to seven weeks. Because planning is now done closer to execution, it’s more responsive and relevant.

FUEL GROWTH

IGNITE at Work

Despite the pandemic, we proceeded with plans to convert cleaning plants for the production of a new concentrated formula of Clorox® bleach, completing the process for three of four facilities. This innovation gives consumers more disinfecting power per drop and reduces plastic packaging and water usage in manufacturing, contributing to record cost savings for the year, allowing us to reinvest that money back into the business.

FUEL GROWTH

IGNITE at Work

We reduced the amount of packaging used for certain multipack options of dry Hidden Valley® Ranch dressing and Fresh Step® cat litter through changes in product offerings, packaging design and manufacturing, saving nearly $3 million.

FUEL GROWTH

IGNITE at Work

To streamline inventory management, our Product Supply Organization implemented a new supply chain planning platform for our U.S. businesses that offers real-time visibility into supply chain operating conditions and global inventory. Using this data, models and forecasts can be created in real time to determine how plant capacity and raw material supply will impact future operations. As a result, the team generated $2.8 million in cost savings and $5 million in sustained inventory reduction for FY20.

FUEL GROWTH

IGNITE at Work

Our Product Supply Organization transformed the operations and efficiency of our supply chain by moving to a digital transportation management system. The fully automated system tracks thousands of daily transactions and traces the location of freight moving from our plants to distribution centers and customers in real time. Additionally, the team can now automate scheduling appointments of freight pick-ups, saving valuable time and resources for carriers and shippers. In total, the new system delivered $2.5 million in cost savings for FY20.

FUEL GROWTH

IGNITE at Work

Our Nutranext and RenewLife® brands integrated systems across Product Supply, Sales and Human Resources to form the Better Health Vitamins, Minerals and Supplements business. This cross-functional effort creates a platform for growth through standardized processes and systems to enhance the supply chain, strengthen forecasting, and offer a more holistic portfolio of products to promote health and wellness.

INNOVATE EXPERIENCES

IGNITE at Work

Enhance Shopping Experiences

Prior to COVID-19, our e-commerce team laid the groundwork for growth by focusing on creating a frictionless online shopping experience for consumers at each stage of the purchase process — from search to delivery. This growth only accelerated as COVID-19 prompted more consumers to purchase our products online, and as a result e-commerce accounted for 12% of total company sales in FY20 compared to 8% in FY19.

INNOVATE EXPERIENCES

IGNITE at Work

ENHANCE SHOPPING EXPERIENCES

Our Grilling business focused on standardizing promotional pricing across retailers, so people can continue to trust they’re getting great value for Kingsford® products at any time of the year and any day of the week, regardless of where they shop.

INNOVATE EXPERIENCES

IGNITE at Work

Build Purpose-Driven, Personalized Brands

During our COVID-19 response, our Clorox brand purpose — “Champion a cleaner world where everyone thrives” — took on new meaning as we responded to public health needs. We helped get our disinfecting products where they were needed most, like front-line healthcare workers and facilities, and educated consumers on how to use our products effectively and safely. And we partnered with Nextdoor on a “Neighbors Helping Neighbors” program, connecting people who wanted to provide care, such as picking up groceries, medications and other essentials, with those who needed some extra help via the Nextdoor Help Map.

INNOVATE EXPERIENCES

IGNITE at Work

Build Purpose-Driven, Personalized Brands

Our Hidden Valley Ranch brand used artificial intelligence to personalize the consumer experience online and show all the ways ranch flavors can be used in recipes. Consumers received AI engine-predicted recipe recommendations based on past behavior and user profiles, leading to a personalized experience on nearly 50% of total website page views and an 11% increase in recipe views.

INNOVATE EXPERIENCES

IGNITE at Work

DELIVER BIGGER, STICKIER INNOVATION PLATFORMS

In a year when we delivered successful innovation like Kingsford pellets and Clorox fabric sanitizers— even in the midst of a pandemic — innovation platforms like Clorox Scentiva® cleaning and disinfecting products and Fresh Step Clean Paws® cat litter products also continued to deliver strong growth in their third year after launch.

EVOLVE THE PORTFOLIO

IGNITE at Work