Henkel’s adhesives technologies business unit has developed an internal assessment methodology for evaluating the sustainability performance of its product portfolio.
The latest assessment was performed and audited by an external third party to a limited level of assurance in the first half of 2023 and covers the period from January 2021 to December 2022. To ensure a sufficient coverage of the portfolio, the internal methodology prescribes covering commercial products representing at least 80% of the net sale. In 2021, the value was 86.51% of net sales, and in 2022, of 87.81% of net sales.
The focus of the assessment lies on identifying and mapping the products that have a significant contribution to sustainability. The criteria cover the entire value chain and consider impacts along all scopes – upstream, midstream, and downstream. Overall, products are assessed across four key dimensions:
- Climate: Enabling emission reduction in customers’ production processes, and in the use phase of products. Also enabling lower Scope 3 emissions at customers by using low-emission raw materials.
- Circularity: Using circular raw materials and keeping valuable materials in the loop by contributing to reuse, repair, and recycling of products and their components.
- Safety: Advancing the chemical safety of solutions as well as facilitating safety of end products in the use phase, and in the production processes of customers.
- Nature: Enabling the preservation and protection of environmental resources, such as water.
Each of the identified contribution criteria are classified according to level of contribution into the following categories: challenged, straight performer, contributor or pioneer. Challenged products contain negatively flagged chemicals at a concentration higher than 0.1%. Straight performers are not flagged as challenged but also don’t have a benefit that would classify them as contributors or pioneers. Contributors have a positive contribution to sustainability within one of the focus areas, but don’t necessarily make a greater contribution than other products already on the market. Finally, pioneers make a positive contribution to sustainability in on the focus areas and a greater contribution compared to the market reference.
Results show that in 2021 and 2022, 2,87% and 3.03% of products were classified as pioneer, respectively. Just over 16% were classified as contributors for both years, bringing the percentage of products making a significant sustainability contribution to around 19%. In 2021, 54.56% of products were straight performers, with the figure raising to 55.05% in 2022. Challenged products accounted for 13.05% of the portfolio in 2021 and 13.48% in 2022. The remaining products were classified as unknown.
In 2022, of the 19% of products that made a significant sustainability contribution, 9.53% did so in the climate area, 4.63% in circularity, 4.75% in safety, and 0.37% in nature. In 2021, the figures were 9.18%, 4.76%, 4.54%, and 0.42%, respectively.
“The results of the assessment create a clear understanding about the contribution and performance of each product and help to anchor sustainability as integral part of our business strategy,” said Ulla Hüppe, global head of sustainability at Henkel Adhesive Technologies. “In addition, it provides even more transparency for our customers and supports the transformation towards new solutions enabling emission reduction and circularity.”