Henkel Sustainability ReportEN

Sustainability Report 2014
Our sustainability strategy at a glance

Our value
We are committed to leadership in sustainability.
Our strategy
Achieving more with less: We create more value for our customers and consumers, for the
communities we operate in, and for our company at a reduced environmental footprint.
Our goal
and implementation
20-year goal for 2030: Triple the value we create for the footprint made by our operations, products
and services. We summarize this ambition to become three times more efficient as Factor 3.
5-year targets for 2015: With our 20-year goal in mind, we have set concrete interim targets
for our focal areas (see graphic below).
Six focal areas: We concentrate our activities along the value chain on six focal areas that reflect
the challenges of sustainable development as they relate to our operations.
Three strategic principles: To successfully implement our strategy, we have defined three
strategic principles:
Our products deliver more value at a reduced environmental footprint.
Our partners are key to driving sustainability along our value chain.
Our people make the difference with their commitment, skills and knowledge.
Factor
Our focal areas and targets for the five-year period from 2011 to 2015
+ 10 %
More value
more net sales per

production unit
More value for our customers

and more value for Henkel
+ 20 %
More social progress and
better quality of life
Social
Progress
Energy
and
Climate
Less energy used and
less greenhouse gases
Safer workplaces and

better health & hygiene
Performance
Deliver
more value
at a reduced
footprint
Safety
and
Health
15 %
Water
and
Wastewater
Less water used and
less water pollution
Materials
and Waste
less water per

production unit
15 %
Less resources used
and less waste generated
Reduced footprint
safer per million

hours worked
less waste per

production unit
15 %
less energy per
production unit
Henkel Sustainability Report 2014
Foreword
Kathrin Menges
Executive Vice President
Human Resources and
Chair of Henkels
Sustainability Council
We are committed to leadership in sustainability.

This is both our ambition and one of our core corporate values. To us, it is not only a responsibility,
but also an opportunity to continuously improve
and to strengthen our competitiveness.
Our actions are rooted in our strategy of achieving
more with less. By 2030, we want to increase our
efficiency by Factor 3. To reach this ambitious
goal, we have defined concrete interim targets for
the period up to the end of 2015. By theend of
2014, we had already met four of these targets
ahead of schedule.
Our employees play a key role in achieving these
successes. One example is our Sustainability
Ambassador program: Since its launch in July 2012,
more than 3,800 employees around the world have
become ambassadors and explored the challenges
of sustainable development. They pass on their
knowledge to colleagues, suppliers, customers and
students. Through a specially designed program,
they have been able to reach around 36,000
schoolchildren in 37 countries.
Many of our employees gain valuable insights

through regular contact with stakeholders. In 2014,
we also interviewed stakeholders in important
markets to learn about their expectations regarding
sustainable business models. The findings
willhelp us take our strategy and stakeholder
engagement forward.
Our achievements in sustainability were recognized
once again in 2014 with leading positions in various
national and international sustainability ratings
and indices.
Although we have already made considerable
progress in decoupling growth from resource use,
there are still many challenges ahead. However,
with our clear strategy and ambitious goals, we are
well equipped to meet these challenges and will
continue to shape a sustainable future.
Kathrin Menges
Executive Vice President Human Resources
andChair of Henkels Sustainability Council
How Henkel continues to work

toward sustainable development:
an interview with Kathrin Menges.
Henkel at a glance 2014

Contents
Highlights
Around
1 Foreword
2 Sustainability strategy and
management
8 Purchasing and supplier management
12 Production and logistics
18 Sustainability stewardship
22 Laundry & Home Care
26 Beauty Care
30 Adhesive Technologies
34 Our people
38 Social engagement
40 Stakeholder dialog
43 External ratings
44 Indicators
48 Our Sustainability Report
Our communication portfolio
49 Contacts, credits
138
49,750 16.4bn
years of brand and

technology success
employees
sales
Around
More than
120
44%
33%
nations represented
by ourpeople
of our sales
generated in
emerging markets
of our managers
are women
More than
More than
59%
2,200
3,800
of our sales
generated by our
top 10 brands
social projects supported
employees trained
as Sustainability
Ambassadors
Henkel around the world: regional centers

Dsseldorf, Germany
global headquarters
Shanghai, China
regional center
Vienna, Austria
regional center
Rocky Hill,
Connecticut, USA
regional center
Scottsdale,
Arizona, USA
regional center
Mexico City, Mexico

regional center
So Paulo, Brazil
regional center
Henkel operates worldwide with leading brands and technologies in three

business units: Laundry & Home Care, Beauty Care and Adhesive Technologies.
Founded in 1876, the company is headquartered in Dsseldorf, Germany. With
production sites in 54 countries, we promote economic development as a
Dubai, United
Arab Emirates
regional center
local employer, purchaser and investor. More information on our business

performance and key indicators per region: Annual Report, pages 63 to 69,
and www.henkel.com/sr2014 |1
Our indicators
Economic indicators
Environmental indicators
2013
Sales in million euros

Adjusted1 operating profit (EBIT) in million euros
Adjusted1return on sales (EBIT) in percent
2014
16,355
16,428
2,516
2,588
15.4
2013
15.8
2014
164
169
Production output in thousand metric tons
7,690
7,867
2,094
Production sites
Energy consumption in thousand megawatt hours
2,165
Adjusted1 earnings per preferred share (EPS) in euros
4.07
4.38
Carbon dioxide emissions in thousand metric tons
655
641
Dividend per ordinary share in euros
1.20
1.292
Water consumption in thousand cubic meters
7,881
7,615
Dividend per preferred share in euros
1.22
1.312
Waste for recycling and disposal in thousand

metric tons
155
137
2013
2014
1Adjusted for one-time charges/gains and restructuring charges.

2 Proposal to shareholders for the Annual General Meeting on April 13, 2015.
Employee indicators
Social indicators
2013
Employees1 (as of December 31)

Trainees in Germany
Proportion of female employees in percent
2014
46,850
49,750
487
484
32.9
33.2
1.5
Participation in employee share program in percent
31.9
30.1
Occupational accidents per million hours worked
0.7
0.9
Average number of training days per employee
Donations in million euros (financial and product

donations, not counting paid time off from work)
Number of projects supported
7.9
2,422
8.2
2,265
1 Permanent staff excluding trainees. Figures have been rounded.
Value added statement 2014

in million euros
Sales
Other income
16,428
48
99.7%
0.3%
Total sales/
other income
16,476
100.0%
569 (11.5%)
Shareholders
of which:
Cost of materials
7,288
Amortization/depreciation
416
Other expenses
3,832
44.2%
2.5%
23.3%
Value added
30.0%
4,940
34 (0.7%)
Minority shareholders
99 (2.0%)
Interest expense
The value added statement shows that most of the generated sales flow back into
the global economy. The largest share 52.5 percent went to our employees in
the form of salary and pension benefits. Central and local g overnment received
581 (11.9%)
Central and local
government
2014
1,059 (21.4%)
Reinvested in
the company
2,598 (52.5%)
Employees
11.9 percent in the form oftaxes; lenders received 2.0percent as interest payments. We paid 11.5 percent of sales as dividends to shareholders. Thevalue
added remaining in the company is available for investments infuture growth.
Sustainability strategy and management
Sustainability strategy
and management
Our long-term perspective and the anchoring of sustainability in
our core business are the key foundations for achieving our goal:
triple our e fficiency by 2030.
Sustainability at Henkel:
A clear strategy with ambitious
targets (video).
Our ambition
Achieving more with less
Commitment to leadership in sustainability is

one of our core corporate values. Through our
sustainability strategy, we contribute both to
sustainable development and to our companys
economic success. As sustainability leaders, we
aim to pioneer new solutions while continuing to
shape our business responsibly and increase our
economic success. This ambition encompasses
all of our companys activities along the entire
value chain.
Our strategy is based on the Vision 2050 of the

World Business Council for Sustainable Development (WBCSD): In 2050, 9 billion people live
well and within the resource limits of the planet.
For us as a company, this means helping people
to live well by generating value while using less
resources and causing less emissions. This is the
idea at the heart of our sustainability strategy:
achieving more with less. We want to create more
value for our customers and consumers, for the
communities we operate in, and for our company
while reducing our environmental footprint at
the same time.
Increasing business relevance

We are convinced that sustainability will become
increasingly important for our business success
in the future. By the year 2050, the worlds population is expected to grow to 9 billion. The accompanying acceleration in global economic activity
will lead to rising consumption and resource
depletion. The effect of increasing pressure on
available resources is becoming more noticeable
around the world.
With a clear strategy and engaged employees,

we aim to develop our business responsibly for
long-term success. Our achievements show that
we are on the right track.
Kasper Rorsted,
Chairman of the Management Board
Focal areas and strategic principles

We concentrate our activities on six focal areas
that summarize the main challenges of sustainable development as they relate to our operations.
In each of these focal areas, we drive progress
along the entire value chain through our products
and technologies. We have subdivided the focal
areas into two dimensions: more value and
reduced footprint. In order to successfully
establish our strategy and reach our goals, both
ofthese dimensions must be ever-present in
theminds and day-to-day actions of our 49,750
employees and mirrored in our business processes. We have defined three strategic principles
to achieve this: products, partners and people.
www.henkel.com/sr2014 |2
The Sustainability Council (from the left): Michael Olosky, Thomas Gerd Khn, Dr. Andreas Bruns, Bertrand Conquret, Dr. Thomas Frster,
Prof. Dr. Thomas Mller-Kirschbaum, Kathrin Menges (Chair), Carsten Tilger, Dr. Peter Florenz, Marie-Eve Schrder, Georg Baratta-Dragono
and Nicolas Krauss. The Sustainability Council steers the development and implementation of our global sustainability strategy. More details
on page 6 and www.henkel.com/sr2014 I3
Our ambitious goal for 2030

If we are to live in harmony with our limited
resources in 2050, we must become five times
more efficient. By 2030, therefore, we want to
triple the value we create through our business operations in relation to the environmental footprint
ofour products and services by comparison with
the base year 2010. We can achieve this ambition
of becoming three times more efficient in different
ways: We can triple the value we create while
leaving the footprint at the same level. Or we can
reduce the environmental footprint to one third
of todays level while delivering the same value.
Interim targets on the road to Factor 3

To reach our goal by 2030, we will have to improve
our efficiency by an average of 5 to 6 percent each
year. We have therefore set concrete interim targets
for our focal areas for the five years from 2011 to
2015. For the period up to the end of 2015, we thus
intend to improve the relationship between the
value we create and our environmental footprint
by 30 percent overall.
By the end of 2014, we had achieved significant
progress in four areas. With improvements of
20percent in energy efficiency, 19 percent in water
use, 18 percent in waste volume (22 percent

excluding construction and demolition waste) and
25 percent in occupational safety, we had already
reached our 2015 targets ahead of schedule in these
specific areas. While aiming to improve our performance once again in 2015, we are working
ondefining new interim targets on the road to
achieving our long-term Factor 3 goal.
Our management and reporting systems

Our company first published an Environment
Report in 1992. It reviewed our achievements and
progress in the area of environmental protection
atour production sites and outlined product
improvements. Henkel subsequently began preparing an annual report on the companys major
sustainability activities. In 2014, we collected data
on 163 sites, representing 99 percent of our global
production volume. Representative life cycle ana
lyses cover around 70 percent of our sales across all
product categories, and in our innovation process
we systematically assess the contributions that our
products make to sustainability. We are currently
using the knowledge we have gained to further
improve our assessment and measurement systems
to allow us to make an integrated assessment
of our progress toward our 20-year goal for 2030
across the entire company and our value chains.
Six focal areas summarize the

main challenges of sustainable
development as they relate to
our operations.
Sustainability targets on the road to Factor 3 (as of December 31, 2014, relative to base year 2010)
With the Henkel Sustainability Strategy 2030, we already defined
more than 6,000 actions and targets at the end of 2011. In order to
reach our ambitious goal of Factor 3 by 2030, we distilled these
Focal area
Factor
measures into concrete interim targets to be achieved in our focal

areas by the end of 2015. You will find a selection of these targets
and their statuses here:
Targets
Status
Performance
At least 10 percent more sales per production unit.
Social Progress
Continuous training and professional development of all employees as appropriate to their tasks.
Annual increase of one to two percentage points in the proportion of female managers (see page 36).
Health and Safety
A 20-percent reduction in the worldwide accident rate.
A 50-percent reduction in solvents used in consumer adhesives by 2020.
Energy and Climate
A 15-percent reduction in energy consumption and the associated CO2 emissions per production
unit by 2015.
Regular checks of our production sites to determine whether the use of renewable energy sources is
environmentally and economically worthwhile.
Water and Wastewater
A 15-percent reduction in water consumption per production unit.
Materials and Waste

A 15-percent reduction in the waste footprint per production unit.
Ensuring that the entire volume of palm oil and palm kernel oil used directly or indirectly in the
form of raw materials in our products is covered by certificates from the Roundtable on Sustainable
Palm Oil (RSPO).*
New target: Ensuring zero net deforestation for the palm oil and palm kernel oil used in our products
by doing the following: Converting to mass balance palm and palm kernel oil; working with our partners
to establish full traceability; and increasing the supply of sustainable oil available on the market by a
volume equal to Henkels demand by 2020.
Overarching goals for all our focal areas
All new products contribute to sustainable development in at least one focal area.
Establishing a recognized measuring system in order to assess the contributions our products
make along the value chain and to quantify the progress achieved in our product categories.
* Replaced by new target
Achieved/Progressing as planned
Stronger focus needed
Not achieved
Analysis of our influence along the value chain

From measuring our own production through to comprehensive quantification
Systematic collection of
sustainability data for our
production sites and life cycle
analyses for important product categories; proficient
estimation of raw materials
and logistics
2010
Systematic expansion of
data collection along the
value chain (including
raw materials, logistics
and use)
2015
Measuring, assessing and managing

progress
Henkel is developing various measurement methods
to optimize the Value and Footprint dimensions. These allow the actions to be identified that
have the greatest effect on sustainability along the
value chain. The various instruments are summarized in the Henkel Sustainability#Master (see
page 19). At the heart of this evaluation system is
a matrix that can be used to assess changes in the
Value and Footprint dimensions.
We use the results to develop measures for
improvement and innovations with improved
sustainability performance. Only by considering
the entire life cycle can we ensure that the actions
taken will improve the overall sustainability
profile of our products. We also use this tool in a
variety of different ways to engage in dialog with
retail partners, nongovernmental organizations,
research institutions and other stakeholders
(see also pages 40 to 42).
Further development of our methods and

systems
In 2014, our work mainly concentrated on further
developing our measurement methods in the focal
areas of Materials and Waste and Water and
Wastewater. In order to be able to better appraise
and manage our influence across the entire value
chain, we assessed our raw materials portfolio and
the use phase of around 120 product categories in
our three business units. These two phases are of a
2020
Sustainability data
integrated and fully
quantified in all relevant
processes and data platforms along the entire
value chain
2025
2030
determining nature across all of our portfolio.

Regarding water and carbon dioxide, more than
80percent of the footprint is generated during
the use of our products.
To make it easier to optimize our products while
they are being developed, we integrate the environ
mental profiles of possible raw ingredients and
packaging materials into the information systems
of our product and packaging development departments. This allows the footprint of a new formu
lation to be computed as early as the development
phase.
International cooperation
We are working with selected partners to further
develop and standardize the accounting methods
used for the environmental footprint of our business activities, and for the value created for our
customers, consumers, and the communities in
which we operate. For example, we participate in
the Sustainability Consortium, the Consumer
Goods Forum and the World Business Council
for Sustainable Development (WBCSD).
In a joint project with the International Council of
Chemical Associations (ICCA) and the WBCSD,
we developed guidelines for measuring and communicating how greenhouse gases can be avoided
in value chains. We are also participating in the
current EU Commissions Product Environmental
Footprint project coordinated by the International
Association for Soaps, Detergents and Maintenance Products (A.I.S.E.) (see also page 42).
Corporate governance
Organization and management
Our Compliance organization
We provide comprehensive information on corporate governance,

compliance, and the remuneration
report of the Management Board, in
the Annual Report, pages 29 to 49,
and on the internet:
The Henkel Management Board bears overall

responsibility for our sustainability strategy and
for our Compliance organization. The latter
ensures compliance with legal regulations and
internal guidelines.
Our Compliance organization has global responsibility for all preventive and reactive measures. It is
supported by integrated management systems and
an organizational structure with clearly defined
responsibilities.
Globally uniform standards

From our Vision and Values, we have formulated
binding behavioral rules which are specified in
a series of codes and corporate standards. These
apply to all employees worldwide, in all business
areas and cultural spheres in which we operate.
The Code of Conduct contains the most important
corporate principles and behavioral rules. It is supplemented by guidelines for dealing with potential
conflicts of interest. These guidelines are a key
element of our preventive measures against corruption. Further corporate standards including our
Code of Corporate Sustainability address specific
topics such as compliance with competition and
antitrust laws; safety, health, environment and
social standards; human rights; as well as public
affairs. The codes and corporate standards also
provide the basis for implementing the United
Nations Global Compact initiative, which Henkel
joined as early as 2003. www.henkel.com/sr2014 |6
The Chief Compliance Officer reports directly to

the Chairman of the Management Board. He is
supported by the Corporate Compliance Office, our
interdisciplinary Compliance & Risk Committee,
and 50 locally appointed compliance officers all
over the world. Our Corporate Data Protection
Officer is also part of our Compliance organization.
Together, this team coordinates the flow of information and helps our employees to implement
ourrequirements locally for example, through
training courses tailored to take local challenges
into account.
The Chief Compliance Officer reports on any
infringements, as well as the measures taken to
deal with them, to the Management Board and the
Audit Committee of the Supervisory Board on a
regular basis. Our internal reporting and complaints
channels are also augmented by a compliance
hotline, which was set up to enable employees to
report infringements of our Code of Conduct,
internal standards, or applicable laws. It is run by
an independent external provider and is available
in 76 countries.
Our organization for sustainability

Chaired by a Management Board
member and reflecting all areas of
the company, the Sustainability
Council steers our global sustain
ability activities as a central
decision-making body. Its members
represent the business units and
corporate functions responsible for
putting our sustainability strategy
into operational action.
Henkel Management Board
Sustainability Council
Business units
Regional and
national companies
Corporate functions
Focus on communication and training

Since we operate on a global scale, our employees
find themselves in a variety of legal and value
systems. Many of our employees work in countries
where, according to surveys by organizations such
as Transparency International, there is a greater
risk of encountering corrupt practices. Even in
such surroundings, the same applies to all employees without exception: Henkel strictly opposes
infringement of laws and standards, and rejects all
dishonest business practices. To impart clear rules
of conduct to our employees, and especially to
avoid any conflicts of interest in everyday work
situations, we focus on regular training courses
and communication measures. In 2014, we trained
more than 12,000 employees around the world
in seminars on compliance topics.
Our managers play a key role in regard to compliance. Given their position within the company,
they bear a special responsibility to set an example
for their staff. For this reason, all of our around
10,450 managers across the globe must participate
twice a year in our mandatory Compliance eLearning
program, which addresses many different
compliance topics. The main emphasis is on
anticorruption and antitrust law.
Zero tolerance for violations of regulations

Improper conduct is never in Henkels interest.
The Management Board and senior management
circles at Henkel all subscribe to this fundamental
principle. Improper conduct undermines fair
competition and damages our trustworthiness and
reputation. Our employees attach great importance
to a correct and ethically impeccable business
environment. We react forcefully to violations of
laws, codes and standards. Where necessary, we
initiate appropriate disciplinary measures. In
2014, 20employees received written warnings,
and 26contracts were terminated as a result of
conduct violating compliance rules.
Compliance management system audited

externally
Henkels compliance culture involves continuous
monitoring and improvement of the compliance
process. As a result, our global Compliance Management System was audited by external auditors
in 2013 based on the IDW PS 980 auditing standard
with respect to the appropriateness, implementation and effectiveness of the compliance processes
in the areas of competition law and anticorruption.
A complete description of the Compliance Management Systems in place at H
enkel can be found on
the internet. www.henkel.com/sr2014 |7
Results of our audit programs

The Head of the Corporate Audit department
reports directly to the Chairman of the Management Board. We carry out regular audits based on
our risk-based audit planning at our production
and administration sites, and at our subcontractors and in logistics centers, to verify compliance
with our codes and standards. The audits are a
keyinstrument for identifying risks and potential
improvements.
In 2014, we conducted 65 audits around the world.
In the course of the audits, a total of 2,131 corrective
actions were agreed upon. The main emphases in
2014 were on processes in purchasing and in the
shared services, local human resources management, the supply chain, and on our Safety, Health
and Environment (SHE) Standards.
Compliance with the SHE Standards was audited
at93 sites, resulting in the initiation of 480 optimization measures. Maintenance of our Social
Standards and our Diversity & Inclusion Policy was
integrated into the audits carried out at 17 sites in
different parts of the world. All audit results are
included in the Corporate Audit departments
annual report to the Henkel Management Board
and the Audit Committee of the Supervisory Board.
In addition to audits, we increasingly carry out
reviews of our internal monitoring systems (in
three countries in 2014). These consist of self-
assessments by the reviewed Henkel companies.
Also in 2014, in seminars and during our audits,
we trained 569 employees on aspects of compliance, risk management and internal monitoring.
Main focus of audits in 2014

Percentage distribution of the 2014
Henkel audit program
42% Supply chain, production,

SHE
26% Finance, accounting
18% Marketing, sales, purchasing
14% Information technology,
human resources
Purchasing and supplier management
Purchasing and
supplier management
Together with our partners, we assume our responsibility along the
entire value chain, jointly developing innovative solutions and setting
new standards.
Henkel is one of the signatories to

the cross-sector Code of Conduct of
the German Association of Materials
Management, Purchasing, and
Logistics (BME).
www.bme.de
Worldwide purchasing markets
Binding supplier code
Henkel currently has suppliers and other business

partners from around 130 countries. More than
70percent of our purchasing volume comes from
countries that belong to the Organization for
Economic Cooperation and Development (OECD).
However, we are also increasingly opening up
new purchasing markets in countries that are not
OECD members. We place the same exacting
demands on suppliers worldwide. Our suppliers
are assessed in a comprehensive process that
covers sustainability performance and risks as
wellas key commercial and operating indicators.
Compliance with the cross-sector Code of Conduct

of the German Association of Materials Management,
Purchasing, and Logistics (BME) is mandatory
forall of Henkels suppliers worldwide. Henkel
joined the BME in 2009, as its code is based on the
10 principles of the United Nations Global Compact
and can therefore be used internationally. The
BME code serves as the basis for contractual relationships with our strategic suppliers. This means
that they have either recognized the cross-sector
BME code and hence the principles of the Global
Compact or produced their own comparable code
of conduct.
What we expect from our business partners

Responsible Supply Chain Process
We expect our suppliers and business partners
toconduct themselves in a manner consistent
with our sustainability requirements. In selecting
and developing our suppliers and other business
partners, we consider their performance in
regard to sustainability. This is based on our globally applicable corporate purchasing standards
and theSafety, Health and Environment (SHE)
Standards that we formulated as early as 1997,
thereby demonstrating even then our commitment to assuming responsibility along the entire
value chain.
The initiative Together for Sustainability

is becoming a benchmark for systematic and
efficient supplier assessment.
arsten Knobel, Executive Vice President
C
Finance (CFO)/Purchasing/Integrated Business Solutions
In line with our sustainability strategy, we intend

to achieve more with less. To do this, we have introduced an updated, five-step Responsible Supply
Chain Process. This focuses on two main challenges.
First, ensuring that all of our suppliers comply
with our defined sustainability standards. Second,
we aim to purposefully work with our strategic
suppliers to continuously improve sustainability
standards in our value chain for example, through
knowledge transfer and continued education about
process optimization, resource efficiency, and
environmental and social standards. This process
is performed both at the beginning of our relationship with a supplier and as a regular check of our
existing suppliers.
Working together for a more sustainable supply chain

In October 2014, the initiative Together for Sustainability held its first supplier c onference
in Shanghai.
In 2011, Henkel and five other companies
Asia. A first suppliers meeting took place
idea An audit for one is an audit for all.
in the chemical industry established an
in Shanghai in October with an atten-
In the future, suppliers will only have to
initiative entitled Together for Sustain-
dance of more than 400.
undergo one assessment or one audit. An
ability The Chemical Initiative for Sus-
At the event,
Chinese suppliers were
internet platform is then used to make the
tainable Supply Chains (TfS). The Initia-
informed about the Initiative with the aim
results available to all members of the
tives aim is to harmonize the increasingly
of establishing a common understanding
Initiative for information and approval. By
complex supply chain management pro-
regarding the challenges that exist in
the end of 2014, the number of members
cesses and to optimize the dialog among
chemical industry supply chains. The
in the Initiative had doubled to 12.
worldwide business partners.
intention is to actively involve suppliers in
In 2014, the Initiative turned its focus on
sustainability assessment processes and
emerging markets, particularly those in
audits. At the heart of the Initiative is the
1,100
90
91
of the suppliers who underwent a repeat

audit had improved their sustainability
performance.
of the suppliers who participated in a

Together for Sustainability survey in
2014 rated the conducted audits positively. This shows that the Initiative
brings benefits to both sides.
audits und
assessments
were carried out under the Together for

Sustainability Initiative at our suppliers
in 2014. Henkel works regularly with
independent experts here.
At the first conference held in

Shanghai by the Together
for Sustainability Initiative
(TfS), Henkel purchaser
Joanne Corry had the opportunity to inform her suppliers
Li Bo (left) and Ruan Jinsong
from Suzhou Boke personally
about TfS.
10
Responsible Supply Chain Process

Step 1:
Risk assessment
Step 2:
Assessment
Step 3:
Analysis
Step 1: Risk assessment

Henkel uses an early warning system for sustainability risks in global purchasing markets. We
begin by estimating the potential risks in a market
or a region. In doing so, we concentrate on countries
identified by international institutions as being
associated with heightened levels of risk. The
assessment includes the criteria of human rights,
corruption, and the legal environment.
We also appraise a second dimension, that of risk
value chains. These are industries and sectors that
we consider to potentially represent a specific risk
for our company. This is how Henkel identifies
risk countries, value chains and, therefore, purchasing markets that score high in terms of hot topics.
Step 2: Assessment
We use supplier self-assessments based on questionnaires and also have assessments performed
by independent experts. Both of these cover our
expectations in the areas of safety, health, environment; quality; human rights; employee standards;
and anticorruption. Around 1,100 assessments
were performed in 2014.
Step 3: Analysis
Based on the risk assessments and assessments,
we classify suppliers according to a traffic light
system. A red score always leads to an audit.
In the case of a yellow score, the areas where
improvement is needed are identified and the
supplier is audited if necessary.
Step 4: Audit
Henkel works with independent audit companies
to audit compliance with defined standards. Our
Step 4:
Audit
Step 5:
Further
development
audits include on-site inspections, e.g., at production sites, and discussions with local employees.
Follow-up measures after an audit ensure that
suppliers implement the corrective actions that
have been specified. Repeated serious non-compliance leads to prompt termination of the supplier
relationship. In this area, we also actively participate
in cross-sectoral initiatives with the aim of improving the transparency and efficiency of supplier
audits and helping to establish cross-company
standards. We conducted a total of 141 audits in 2014.
Step 5: Further development

As part of our supplier management activities, we
work intensively with our suppliers to improve
sustainability performance. We strive to initiate
positive changes throughout the value chain,
through training programs and joint projects on
process optimization, resource efficiency, and
environmental and social standards. On the whole,
all of the strategic suppliers and other business
partners that were assessed in 2014 satisfied our
expectations. We terminated one supplier relationship because of socially unethical practices.
The sustainability performance of suppliers and
other business partners is also a core element at
Henkels annual Supplier Relationship Events.
In2014, an agreement was reached with all strategic
suppliers on targets for disclosure of their carbon
and water footprint. The targets and annual
progress are recorded in a kind of roadmap, thus
creating greater transparency in the supply chain.
Inaddition to this, Henkel has been honoring
particularly innovative and sustainable solutions
by its suppliers since 2008.
Early warning system for risk markets

One example of a risk market is the purchasing
ofraw materials for soldering pastes and similar
products for the electronics industry. These contain metals mainly silver, copper and tin to
make them electrically conductive. In some countries, the mining of cassiterite (the main source of
tin) is often associated with military conflicts and
human rights violations. In recent years, we have
repeatedly reviewed our direct suppliers of metals
and requested them to supply documentary evidence that they do not obtain or process metals
from critical regions. Henkel is also a member of
the Conflict-Free Sourcing Initiative (cfsi), which
was founded by members of the global electronics
industry. Itsaim is to ensure conflict-free supply
chains for minerals. To this end, the cfsi organizes
independent audits by third parties, which are
conducted according to the stringent requirements
of the electronics industry.
Initiatives for greater sustainability

The initiative Together for Sustainability The
Chemical Initiative for Sustainable Supply Chains
(TfS) is based on the principles of the United
Nations Global Compact and the Responsible Care
11
Initiative of the International Council of Chemical

Associations (ICCA). Its aim is to harmonize the
increasingly complex supply chain management
processes and to optimize the dialog among worldwide business partners. Above all, synergies are to
becreated so that resources can be used more efficiently and with a minimum of administrative effort,
not only among the member companies but with all
of our shared suppliers. In 2014, the Initiative grew
again, and the number of members doubled to 12.
On December 1, 2014, the TfS also changed its legal
status. Through partnering with the Brussels-based
European Chemical Industry Council (CEFIC), the
Initiative now has the status of an independent,
non-profit organization. This collaboration will
generate even more synergies across the chemical
industry.
In addition, Henkel is a member of AIM-PROGRESS,
a forum of companies in the consumer goods
industry. One main objective of AIM-PROGRESS is
to provide a common platform to promote effective cooperation on matters relating to supplier
management.
www.tfs-initiative.com
www.aim-progress.com
www.bme.de
Like the Together for Sustainability

Initiative, AIM-PROGRESS encourages member companies to share
experiences and utilize synergies.
The forum for consumer goods companies also seeks to develop and
promote the use of shared evaluation methods to determine CSR
performance along the value chain.
Shared internet platform

for partners
At www.tfs-initiative.com, suppliers
and potential partners from the chemical industry can learn more about
the Together for Sustainability
Initiative. Besides general information and notes on current events,
the site also offers online training
modules on the audits and assessments.
12
Production and logistics

We are working toward our goal of becoming three times more
efficient by 2030 by continuously improving and simplifying
production and logistical processes.
Clear targets for our production sites
Worldwide optimization programs
Henkel operates 169 production sites worldwide.

We work continuously at all of these sites to
reduce energy and water use and waste generation
while upholding our promise of quality and safety.
We have set concrete targets for our production
sites to help steer progress toward our long-term
Factor 3 goal. By the end of 2015, we aim to reduce
our energy and water use and waste volume by
15percent per production unit and reduce our
worldwide accident rate by 20 percent (base
year:2010).
We have developed optimization programs that

identify best operating practices and promote
continuous improvement across our entire
production network. Our business units develop
both general and specific optimization programs
for their locations, as the various production
processes involved in making products such as
household cleaners, skin creams or tile adhesives
allow different approaches to improvements.
In 2014, we achieved all four of these targets ahead

of schedule. Energy use per production unit has
improved by 20 percent, water use per production
unit by 19 percent and waste volume per production
unit by 18 percent (22 percent without construction
and demolition waste) versus 2010. Wealso improved
our worldwide occupational accident rate by
25percent compared with the 2010 baseline.
Operational excellence
through lean production
Employees in Seabrook, New Hampshire, USA, developed a comprehensive plan to eliminate waste, beginning
with a Value Stream Mapping
workshop in 2014. The roadmap is
essential to optimizing processes and
achieving operational excellence.
Johnny Tong (right), Vice President
Operations & Supply Chain Adhesive
Technologies in North America,
explains our lean production philosophy to Harvard Professor Dr. Ananth
Raman.
The Adhesive Technologies business unit is using

a combination of lean production principles,
workshops and structured problem-solving techniques to create customer value. Through Value
Stream Mapping (VSM) workshops, we identify
inefficiencies (e.g., waiting times or excess production) and develop corresponding improvement
projects, which often have sustainability benefits.
In 2014, the business unit also launched sustainability workshops focused on energy, water and
waste and will extend them gradually to major
production sites. We also began training Supply
Chain and Operations managers on an eight-step
methodology used to improve processes and
eliminate waste, so that they can drive efficiency
within their own areas of responsibility.
The Laundry & Home Care business unit uses its
Manufacturing Excellence Program to monitor
best practices in the areas of sustainability and
efficiency. Standardized scorecards are used to
define targets and track continuous improvement
measures for each site on a quarterly basis. Moreover, a global internet-based energy measurement
system enables us to track our energy use in real time.
In 2014, the business unit implemented energy
recovery and efficiency programs that will lead to
carbon dioxide savings of 20,000 metric tons per
year. In recognition of these efforts, the Econique
Sustainable production in Mexico
Jordi Cruz (left), SHEQ Latin

America Manager, and Jose Luis
Romero Mejia, Sulfonation
Operator, examine the new
heat recovery systems
contribution to more efficient
production in Toluca, Mexico.
Project Xina will double the capacity and reduce the environmental impact of our largest
detergent production site in Latin America.
Project Xina, a 27 million euro expansion
We also introduced a two-step reverse
Additional efficiency gains are expected
project named for a volcano near our
osmosis process to reduce wastewater
once all measures are fully implemented
Toluca production site, will double the
from our liquid detergent production and
in 2015.
production area, modernize technologies,
increase the yield of recycled water. With
Once the project is complete, Toluca will
and make logistics more efficient. Several
the first measures in place, annual energy
be Henkels largest detergent production
upgrades were completed in 2014 and are
consumption has decreased by 13 percent
site outside of Dsseldorf and will enable
already reducing the plants environmen-
per ton of product, water consumption
us to produce powder and liquid deter-
tal footprint. For example, a new heat
has decreased by 14 percent per ton
gents efficiently for the fast-growing Latin
recovery system was installed to save
of product, and waste generation has
American market. The modern factory will
energy. The new system uses waste heat
decreased by 19 percent per ton of prod-
also serve as a sustainability and safety
from our sulfonation plant to preheat the
uct. The expansion has taken place with-
benchmark for our entire group.
air for spray-drying powder detergents.
out disrupting ongoing production and
More examples of efficiency

at our Toluca production site.
without a single lost-time accident in 2014.
169
27m
belonging to our three business units

around the world are the foundation for
our strong presence both in mature and
emerging markets. Of these sites, five
arelocated in Mexico.
is the sum we are investing to expand

production areas, modernize technologies and make logistics more efficient at
our laundry detergent production site in
Toluca, Mexico.
is the record for the expansion of our

laundry detergent site in Toluca in 2014.
89 percent of our worldwide production
sites were accident-free last year.
production sites
13
lost-time accidents
14
Network presented the business unit with the 2014

Energy Masters Award.
areas of sustainability by developing improvement

plans specific to their needs.
The Beauty Care business unit continues using its

Total Productive Management Plus program to
identify optimization potential and implement
continuous improvement measures. The business
unit also introduced a state-of-the art software
system in Europe to monitor its performance in
real time and steer processes more effectively. The
system will be rolled out further in 2015. Finally,
Beauty Care focuses on sharing best operating
practices across its production network. The goal
is to encourage sites to continue improving in all
In 2015, we will begin rolling out the Henkel

Production System (HPS), a new continuous
improvement program on a common platform,
across all three business units. HPS will enable
usto better leverage best practices across business
units, standardize processes and harmonize
production processes further.
More examples of resource efficiency from other
production sites:
Worldwide: Selected examples of contributions to resource efficiency in 2014

Focal areas
Measures
Ankara, Turkey
By installing a new heat recovery system, the laundry detergent production site was
able to optimize its spray-drying process and cut its annual energy use by five percent
in2014.
Lomazzo, Italy
The laundry detergent production site began reusing water from its wastewater treatment
plant to dissolve additives and to wash centrifuges. This has made it possible to reduce
water use by more than 6,000 cubic meters per year.
Sfax, Tunisia
The cosmetics plant added a pre-mixing and heating phase to its production process.
Preheating materials has enabled the plant to reduce its total mixing time, save energy
and cut costs.
West Hazelton, Pennsylvania, United States
The cosmetics plant installed active skylights to reduce energy consumption and illuminate
production areas with natural light. The system uses a satellite controller to track the position of the sun and an array of mirrors to ensure proper lighting, even in winter months.
Seven Hills, New South Wales, Australia
The adhesives plant began using a high-pressure cleaner to sterilize its seven tanks.
By using this technique instead of boiling water to generate steam daily, the factory
reduced its process wastewater by 50 percent.
Adhesives plants in Balakleya, Vyshgorod and Mykolayiv, Ukraine, modernized their sand
drying lines in 2014. The upgrades have reduced annual energy consumption by approximately 4 million kilowatt hours and related carbon dioxide emissions by 800 metric tons.
15
Standards and management systems

Our worldwide optimization programs are based
on globally uniform standards for safety, health,
environment (SHE) and integrated management
systems. The SHE Standards and our Social Standards apply to all sites. Our management systems
ensure that these standards are implemented
consistently across our global production network.
Resource-efficient
cosmetics production
In 2014, our cosmetics production
site in Maribor, Slovenia, installed
anew system that reuses process
water for cleaning purposes. By
collecting the process water in tanks
and warming it through heat-recovery
measures, we save up to 7,000 cubic
meters offresh water and 200,000
kilowatt hours of energy per year.
Pictured: Technician Romana
Florjani and Project Manager
Sreko Habjani.
Our employees behavior plays a key role in implementing these corporate standards. Therefore, we
conduct regular environmental and safety training
sessions on a variety of topics at all sites.
We carry out regular audits at our production sites
and, increasingly, at our subcontractors and logistics
centers to verify compliance with our codes and
standards. All audit results, including the monitoring
of our SHE and Social Standards, are included in
the Internal Audit departments annual report to
the Henkel Management Board.
We have our management systems externally
certified at the site level, wherever this is expected
and recognized by our partners in the respective
markets. At the end of 2014, 90 percent of our
production volume came from sites certified to
ISO 14001, the internationally recognized standard
for environmental management systems. 93 percent
of our production volume is covered by the ISO 9001
quality management standard and 24 percent is
covered by the ISO 50001 energy management
standard. Furthermore, 83 percent came from sites
certified to the OHSAS 18001 standard for occupational health and safety management systems.
Collaboration with subcontractors

Third-party manufacturing is an integral part of
our production strategy. For example, we sometimes use toll and contract manufacturers when
entering new markets or introducing new products
and technologies. In these cases, the corresponding
production volume is often still small.
The use of external partners also helps to optimize
our production and logistics network and to
increase resource efficiency. Currently, we source
about 10 percent additional annual production
volume from toll and contract manufacturers.
Our requirements regarding quality, environmental, safety and social standards are an integral part
of all contractual relationships and order placements. We monitor them using audits carried out
by our own staff and, increasingly, by specialized
third-party service providers. We aim to establish
long-term collaborations with our toll and contract
manufacturers. This also includes adding them to
our environmental data recording systems.
We have been collecting data on energy, water,
wastewater and waste parameters for selected toll
and contract manufacturers since 2011. Our Beauty
Care business unit collected environmental and
production data for 70 percent of its external
production volume during 2014 and plans to extend
data coverage further in 2015. Our Adhesive
Technologies business unit began collecting safety
andenvironmental data from toll and contract
manufacturers in 2014.
Furthermore, to ensure compliance with our
standards and promote continuous improvement, our Adhesive Technologies business unit
extended Together for Sustainability audits to
contract manufacturers and traded good suppliers
worldwide for the first time. We also established
minimum audit requirements that all contract
manufacturers and traded good suppliers are
expected to meet.
An overview of ISO certi

fications for our Adhesive
Technologies business unit
isavailable on the Adhesive
Technologies webpage.
16
Occupational safety
Occupational safety
Our objective: zero accidents
Occupational health and safety is one of our highest
priorities. We remain focused on our long-term
objective of zero accidents. With this objective
in mind, we work to continuously improve our
health and safety performance. Our interim goal
is to reduce our worldwide occupational accident
rate by 20 percent by the end of 2015 (baseline 2010).
business unit trained employees on health and

safety as part of its optimization program Total
Productive Management Plus.
In 2014, the Adhesive Technologies business unit
introduced safety workshops based on a train-thetrainer approach to eliminate at-risk behaviors
and further establish safety as a core value.
Status
Behavior-based safety training
We insist on strict compliance with our Safety,
Health and Environment (SHE) Standards. Therefore, training sessions are held regularly at all sites
to create employee awareness and avoid accidents.
We also conduct training sessions for the staff of
contractors working at our sites.
The Laundry & Home Care business unit held
training sessions for all of its production management employees. The business unit also introduced a standard safety-training template for
visitors and contractors in 2014. The Beauty Care
Putting theory into

practice at Safety Days
More than 1,000 Adhesive Technologies employees participated in Safety
Day activities at many production
sites in 2014. Attendees refreshed
their knowledge of safe operating
practices and potential safety risks
through hands-on demonstrations.
Paul Kirsch (right), Corporate Senior
Vice President Supply Chain &
Operations Adhesive Technologies,
extinguishes a fire as part of a Safety
Day demonstration in Dsseldorf.
In 2014, we recorded 0.9 occupational accidents

per million hours worked. That is an improvement
of 25 percent relative to the base year 2010 and
means that we already achieved our 2015 target
one year ahead of schedule.
Despite our focus on health and safety, an
employee in Port Said, Egypt, was fatally injured in
2014 as a result of an electrical shock. To prevent
similar accidents from occurring in the future,
Henkel has instructed relevant production sites
to perform a detailed analysis on the handling of
electrical equipment.
Logistics and transport
17
Logistics and transport

Logistics planning
Road safety
Production and logistics planning depends on the

products being transported. For bulkier products,
we reduce transport mileage and environmental
impact by operating regional production sites.
Compact products make fewer demands on transport, so we produce them centrally whenever
possible. Meanwhile, many industrial adhesives
are produced close to customers production sites.
Adhesive Technologies launched the Go Safe with

Henkel road safety campaign to curb traffic-related
accidents in India. The campaign raises awareness
of safe driving and encourages Henkels logistics
partners to follow strict guidelines on driving
practices, vehicle conditions and safety equipment.
The campaign will be rolled out in other countries
in 2015.
Product transports per

transport mode in 2014
Emissions reduction initiatives
Requirements on logistics partners
We optimize our logistics operations in order to

reduce transport emissions. We position warehouses and distribution centers to minimize the
distance between our sites and our customers.
Wherever possible, we combine shipments
between individual sites and warehouses.
We take efficiency as well as environmental and

safety performance into account when choosing
our transport partners. Relevant criteria have been a
part of our request for proposal process and tenders
for the purchase of logistics services since 2010.
These include energy-saving targets, measures for
modernizing vehicle fleets, and investments inprograms that optimize routes and record e missions.
Additional measures to improve the impacts of
logistics and transport: www.henkel.com/sr2014 |9
In 2014, Laundry & Home Care replaced four

distribution centers with a high-bay storage facility
in Dsseldorf in order to reduce transport mileage
and energy needs. The new central warehouse is
situated directly next to production, thus eliminating supply shipments and cutting the tonkilometers traveled to customers by 20 percent.
Laundry & Home Care also worked with suppliers
to upgrade transportation vehicles to more
efficient emissions standards.
Beauty Care is working with retailers and suppliers
to reduce carbon dioxide emissions. In France, for
example, Beauty Care launched a pilot project with
customers to deliver products on cardboard pallets
instead of wood pallets.
Adhesive Technologies is consolidating customer
deliveries in Western Europe to reduce the number
of truckloads shipped as well as carbon dioxide
emissions. In 2015, our Electronics business will
begin replacing Styrofoam coolers used to transport
heat-sensitive products with reusable, thermal
containers. The new containers reduce the carbon
footprint by 75 percent and waste per container by
95 percent.
84% Road
8% Air
6% Sea
2 % Rail
Overall picture:
our operational carbon footprint in 2014
Direct emissions (Scope 1)
Emissions due to energy use at our
production sites
Indirect emissions (Scope 2)

Emissions due to bought-in energy
(gas, fuel oil, coal, renewable energies)
(21%)
311,000
metric tons
(23%)
330,000
metric tons
Indirect emissions (Scope 3)

Product transports to customers (all
transport modes): 661,000 metric tons
Business trips (train, airplane,
company car): 77,000 metric tons
Administration sites/warehouses:
70,000 metric tons
1,449,000 metric tons
(56%)
808,000
metric tons
Henkels own CO emissions are

primarily caused by energy generation
and consumption. Other CO emission sources are not relevant for
ourbusiness operations. The same
applies to emissions of other greenhouse gases. They account for less
than one percent of the Scope 1 and
Scope 2 emissions. Scope 3 emissions, especially those associated
with raw materials and product use,
are calculated at the product level.
18
Sustainability stewardship
We develop products that offer more value and have a smaller
environmental footprint. Each new product is therefore expected to
make a contribution to sustainability.
Sustainable innovations
If we are to decouple increased quality of life from
resource use, product innovations will play an
essential role. Our products is therefore one of
the strategic principles for implementing our
sustainability strategy. They should offer customers
and consumers more value and better performance
while having a smaller environmental footprint.
For us, this is not a question of developing individual green products where only the environmental profile has been improved. Our aim is to
continuously improve all products across our entire
portfolio, taking every aspect into account. A high
degree of innovativeness is very important in
achieving this. In 2014, Henkel employed around
2,650 people in research and development and
invested 413 million euros in these activities. In
order to steer product development in line with
our sustainability strategy from the outset, our

focal areas have been anchored in the Henkel
innovation process since 2008.
Product and consumer safety

Our customers and consumers can be certain that
our products are safe when used as intended. All
raw materials and finished products are subjected
to numerous assessments and tests to ensure a
high level of safety during production, use, and
disposal. This is based on ensuring compliance
with legal regulations and farther-reaching Henkel
standards.
Our product developers and experts for product
safety assess ingredients according to the latest
scientific findings and safety data. They continuously track Henkel products on the market and
Sustainability evaluation in the Henkel innovation process
2 1 0 +1 +2 2 1 0 +1 +2 2 1 0 +1 +2 2 1 0 +1 +2 2 1 0 +1 +2 2 1 0 +1 +2
Basic
research
Applied
research
Product
development
Market
launch
Post
launch
The Henkel focal areas have been systematically anchored into our innovation process since 2008. This means that, at a given point,
our researchers must demonstrate the specific advantages of their project in regard to product performance, added value for customers and consumers, and social criteria (more value). They also have to show how it contributes to using less resources (reduced
footprint). One of the tools they use to assess the different contributions is the Henkel Sustainability#Master (see graphic at right).
incorporate the insights gained into the assessments. In addition to considering the basic hazard
potential of a substance, our safety assessments
focus especially on the actual concentration in the
specific formulation and the conditions of use.
The use of substances with certain (dangerous)
properties is precluded for specific applications
from the very start. In other cases, we work to
further improve health compatibility by developing
alternative ingredients.
Since many of our products pass into wastewater
after use, their composition has been designed so
that their use has the least possible impact on the
environment.
Wastewater from chemical engineering applications

is treated using state-of-the-art technology to
remove harmful substances and is then disposed
of properly.
In selecting and using ingredients, we also follow
controversial discussions in the general public
about the safety of chemical ingredients in consumer products. As a rule, we respond by critically
reviewing the scientific basis of our assessments
with particular care. If there are serious reservations
about the continued validity of the scientific data
and findings regarding product safety, we either
avoid using a substance altogether or restrict its use
so that it meets our stringent safety criteria.
Henkel Sustainability#Master Sustainability assessment of products and processes

Assessment along the entire value chain
Henkel focal areas
Value
Raw materials
Production
Logistics
Retailing
Use
Disposal
e.g., improved
product
performance
Performance
The Henkel Sustainability#Master

compares the sustainability performance of products and processes.
Health and Safety

e.g., easier
to use
Social Progress
Materials and
Waste
e.g., less
packaging
e.g., less
raw materials
Energy and
Climate
Water and
Wastewater
e.g., less
plastic
e.g., reduced
dosage
e.g., reduced
emissions
e.g., lower water

requirement
Footprint
Hot spot = Field with the greatest relevance
for sustainability. It is particularly important
to assess changes at these points.
The Henkel Sustainability#Master combines various instruments
with the greatest relevance for sustainability this applies to both
for measuring sustainability. This evaluation system centers
the Value and the Footprint dimension. The specified hot
around a matrix based on the individual steps of our value chains
spots can also be used to compare the sustainability profile of two
and on our six focal areas. The goal is to increase the value of the
products or processes. This allows sustainability profiles to be pre-
product and simultaneously reduce its environmental footprint.
pared for each product category. Henkels researchers use these
Hot spots can be identified for every product category on the
findings for innovation and continuous product improvements.
basis of scientific measurement methods. These are the fields
19
20
Innovations and alternative test methods

Henkel has been carrying out successful research
since the early 1980s to develop new methods for
testing the safety and compatibility of raw materials
and products. Advanced molecular biological
methods are used to thoroughly investigate aspects
such as the effect of raw materials on human skin
cells so that optimized formulations can be developed. This is one of the basic prerequisites for
successful product innovations. Our goal is to be
able to answer questions about the safety of our
products and the ingredients we use exclusively
without animal testing. As a matter of principle,
Henkel only uses animal testing if this is stipulated
by legal regulations and there are no accepted
alternative test methods available for obtaining the
necessary safety data. We naturally comply with
statutory requirements that prohibit animal testing,
such as the legal provisions on safety testing of
cosmetic ingredients in the European Union.
Whenever possible, questions regarding the skin
compatibility of ingredients are now also investigated with the help of in vitro tests. In vitro tests,
such as the skin model (technical name: epidermis
model) have been developed over the past decades
in collaboration with external partners and submitted for acceptance as alternatives to animal testing
to the European Union Reference Laboratory for

Alternatives to Animal Testing (EURL ECVAM). By
mid-2015, Henkel plans to make the results of this
research freely accessible in an open source model
and to make the method available free of charge to
biologists and lab technicians, for instance, in
trade journals. In pursuing this policy, Henkel is
making a significant contribution to establishing
the use of alternative methods around the globe.
Our scientists are currently working with Fraunhofer
researchers to make it possible to not only produce
the skin model, which is as large as a 1-cent coin,
individually in the laboratory but also in machines
in the future. The process will be more efficient
and allow larger quantities to be produced.
Responsible use of raw materials

Henkel is committed to responsible management
of raw materials, and especially the conservation
of natural resources and biodiversity. We use
ingredients based on renewable raw materials to
optimize the overall characteristics of our products,
wherever this is compatible with environmental,
economic and social considerations. Renewable
raw materials are already key ingredients in many
of our products, such as soaps, shampoos, glue
sticks and wallpapering adhesives.
Examples of sustainability in our packaging development
Vernel Soft & Oils

innovative fabric softener
Thinner shrink film for

wrapping pallets
Glue roller with up to

100percent recycled material
The highly concentrated formulation

saves both water and material. With its
transparent bottle, improved design and
choice of label, this packaging type is
alsoeasier to recycle. The material of
which the bottle is made already contains
25 percent recycled PET.
In 2014, the Beauty Care business unit

began switching to thinner pallet shrink
wrap films in a pilot project at the
Wassertrdingen factory. Reducing the
film thickness from 35 to 25 micrometers
results in CO2 savings of around 530metric
tons, which is equivalent to a 30-percent
reduction.
In collaboration with Interseroh, Henkel

has developed its first products incorporating recycled plastics. The housing of
the Pritt Glue Roller and Pritt Correction
Roller features a rear wall made of Procyclen,
a multi-award-winning synthetic material.
It is made almost 100 percent from
recycled plastics.
Palm and palm kernel oil

We are aware of our responsibility regarding the
purchase and use of ingredients based on renewable raw materials. We are therefore promoting
sustainable palm oil production with our partners
along the entire value chain. We have adopted the
goal of ensuring zero net deforestation by 2020.
This means that palm and palm kernel oil that we
use should not contribute to deforestation of
primary or secondary forests with significant ecological value. That includes peat lands and other
areas with high carbon stock. We seek to drive
physical progress in the palm and palm kernel oil
supply chain, so as to prevent deforestation. In
doing so, we have come to the conclusion that
purchasing Book & Claim certificates only will not
be sufficient to achieve this ambition.
Together with our partners, we are working to
establish full traceability of palm and palm kernel
oils used in ingredients for our products, such as
surfactants, by 2020. We aim to ensure that all
palm and palm kernel oil that we purchase is being
cultivated sustainably. An additional goal is to
increase the supply of sustainable oil available on
the market by a volume equal to Henkels demand
in 2020.
We are working toward these goals by:
1. Converting to the Mass Balance system for palm
and palm kernel oil: The vast majority of the palm
and palm kernel oil in our products is used indirectly through ingredients based on these oils. We
are working with our suppliers to ensure that at
least one third of it is mass-balance-certified (i.e.,
a controlled mix of sustainable and conventional
oil) in 2015. Furthermore, we intend to increase
our purchases of mass-balance-certified oils so
that they cover 100 percent of our demand by
2020. This replaces our previous commitment to
cover all product ranges with Book & Claim certificates for sustainable palm and palm kernel oil by
2015. By purchasing mass-balance oil (rather than
palm and palm kernel oil certificates), we can
contribute more effectively to ensuring that physical
sustainable oil enters our value chain.
2. Improving traceability: We are establishing

pilot projects to trace palm and palm kernel oil
that we use back to the plantations in order to
ensure the oil that we use is being cultivated
sustainably.
3. Supporting plantations and smallholders: We
are providing targeted support to plantations and
smallholders in palm-growing countries to promote sustainable farming practices, improve
livelihoods and ensure that sufficient volumes of
sustainable oil are available on the market. In 2013,
Henkel joined forces with the development
organization Solidaridad and other partners to
start a three-year program in Honduras designed
toimprove the livelihood of 7,500 smallholders
and 5,000 workers. We aim to increase our targeted
support for smallholders in the future.
Smart packaging solutions

The packaging for our consumer products fulfills
many different functions: It ensures the hygiene
and intactness of the products, protects them from
external influences, provides space for necessary
consumer information and often plays an important
role in the purchasing decision through attractive
packaging design and shelf appeal. In order
tominimize the volume of waste, our packaging
developers work constantly to design smart
packaging that uses the least amount of material
possible, and incorporates materials that can be
recycled in public recycling systems.
Throughout the company, we follow three basic
principles prevention, reduction, recycling. We
specified these in more detail in 2011 and defined
comprehensive targets for the end of 2015.
www.rspo.org
www.henkel.com/positions
www.henkel.com/developing-alternatives-to-animal-testing
Targets to reduce packaging footprint for consumer products:

Henkel packaging
footprint 20141
47% Paper
43% Plastic

9% Metal

1% Glass
1 Around 540,000 metric tons
(estimate based on expenditures
forpackaging materials).
21
22
Laundry & Home Care
Laundry & Home Care

Close collaboration with our partners is a key element of our
strategy on the road to ever-more sustainable products and
sustainable consumption.
Meeting consumer needs sustainably
With the Persil resource calculator,

we point out the advantages of our
products and encourage resource
efficiency when using them.
Our consumers expect products to satisfy the

criteria of quality, environmental compatibility
and social responsibility in equal measure. These
expectations mirror our own ambition. We view
this combination as the driver for innovations and
the basis for our future competitiveness. Laundry &
Home Cares research and development strategy
therefore unites innovation and sustainability to
provide resource-efficient technologies and products. Each new product must make a contribution
to sustainability in at least one of our six focal
areas: performance; social progress; safety and
health; energy and climate; water and wastewater;
and materials and waste. Through increasing use
of smart raw materials, we are continuously optimizing the carbon footprint of the materials we use.
communication, we also try to promote responsible

use of the products. We use communication appropriate for the target group, including on the internet,
to point out the advantages of our products. We also
encourage resource-efficient use, for example by
means of our Persil resource calculator for laundry.
Our retailers are important partners for Henkel on
the road to more sustainable consumption. They
provide platforms for informing consumers about
more sustainable products and how to use them
in an environmentally responsible way. In 2014,
we intensified our cooperation with Walmart, for
example. We are working more closely together on
sustainable solutions for packaging development
and more efficient logistics.
Developing laundry detergents of the future

Focus on the use phase
An important objective of our strategy is fostering
sustainable, resource-conserving consumption. Our
products are the key here. They are used daily in
millions of households and often require water and
energy. As much as 70 percent of the environmental
footprint of our products is generated during their
use. We thus concentrate on developing products
that enable the efficient use of resources such
as energy and water. Through targeted consumer
Our innovations combine a clear sustainability

profile with more value for our consumers.
Bruno Piacenza, Executive Vice President
Laundry & Home Care
The Laundry & Home Care business unit generates

more than 45 percent of its sales with products
that have beenon the market for less than three
years. At the beginning of any product development project, the sustainability improvements are
already charted out for each later innovation. In
order to expand this leading position still further,
Laundry & Home Care places great importance
on collaborative research and open innovation,
harnessing the capabilities of external innovation
partners such as universities, research institutes,
suppliers and customers. Through early and extensive involvement of these innovation partners, the
aim is to satisfy customer wishes for improved
product performance, optimal convenience and
maximal efficiency while also providing enhanced
sustainability at the same time.
Laundry & Home Care
Together for greater sustainability

HICAST industry meets university
In collaboration with the Rhenish-Westphalian Technical University (RWTH) in Aachen, Germany,
Henkel is working to research and develop the laundry and home care products of the future.
The aim of this cooperation is to develop
four professors from the fields of chemis-
liquids, particularly at low temperatures.
products that are even more resource effi-
try and biotechnology. The scope is to
Often, they can reduce the need for c lassic
cient and perform better than ever before.
investigate new and sustainable basic raw
ingredients such as surfactants. This
The new cooperation concept is called
materials and develop completely new
makes it possible to achieve significant
Henkel Innovation Campus for Advanced
active substances. This includes new
cuts in energy and resource use.
Sustainable Technologies or HICAST,
enzymes. Powerful enzymes boost the
The Innovation Campus is an example
for short.
cleaning performance of laundry deter-
ofthe wide-ranging, intensive collabora-
Henkel is investing several million euros
gents, automatic dishwashing detergents,
tion that Henkel engages in with external
in this interdisciplinary collaboration with
and, most recently, hand dishwashing
partners.
100
More
than
of the surfactants used in our laundry

and home care products are readily
biodegradable. Henkel began conducting
experiments to research the biodegradability of surfactants as far back as
the 1950s.
10,000
metric tons of carbon emissions are

saved every year in the production of
our hand dishwashing liquid Pril. We owe
this to powerful enzymes and the steps
we take to optimize product formulas.
More
than
30
is how many collaborative programs

Laundry & Home Care is working on with
universities and research institutes around
the world. These include renowned establishments such as the Max Planck Society,
the Fraunhofer Society and Columbia
University in New York, USA.
23
University scientists Professor

Dr. Ulrich Schwaneberg and
Dr. Ljubica Vojcic (right)
from the RWTH Aachen are
researching enzymes of the
future together with Henkel
biotechnologist Dr. Daniela
Herbst. Powerful enzymes
have recently also been
incorporated into hand dishwashing liquids such as Pril.
Dr. Michael Dreja, Research

and Development at Laundry &
Home Care, explains the
background of the research
cooperation with RWTH Aachen.
24
Laundry & Home Care
The enzyme technology used

in Pril Kraft-Gel removes starch
residues even more effectively
and sustainably when washing
dishes by hand.
One important contribution to sustainability in

the laundry detergents business is the result of a
long-standing research cooperation with BASF.
Researchers from BASF and Henkel have jointly
developed ingredients for a new generation of
premium laundry detergents. These unique ingredients offer advantages in two key sustainability
dimensions: performance and energy. They help
to remove stubborn stains at significantly lower
washing temperatures than is possible with conventional laundry detergents. Consumers therefore obtain first-class cleaning results while using
less energy. This new technology is incorporated
in the product Persil Kalt Aktiv.
Another example of an energy-efficient product
innovation in laundry detergents is Persil DuoCaps. This product combines the brightness formula with a powerful active stain remover and
achieves full washing performance even at low
temperatures. The pre-portioned doses are easy
to use and prevent overdosage.
Powerful cleaning performance helps save

energy
The Laundry & Home Care business unit also makes
use of innovations from other industries, such as
food and beverages, food processing, pharmaceuticals, and textiles, in order to make its products even
more effective and efficient. In f ormulating its
automatic dishwashing detergents Somat Gold and
Somat 10, for example, Henkel uses a substance that
Purex Power Shot

prevents overdosing
Innovative auto-dosing technology
prevents excessive dosing of this
liquid laundry detergent. Its highly
concentrated formula also saves
resources such as water and energy.
The liquid detergent delivers full
cleaning power even at low temperatures and thus also helps to save
energy in the use phase.
was originally developed in the pharmaceuticals

industry to allow tablets to dissolve rapidly. This
ingredient ensures that the Somat Gold and Somat
10 tabs dissolve more rapidly than in predecessor
products and are thus excellently suited for use in
the low-temperature cycles of automatic dishwashers. This innovation not only delivers first-class
product performance, as the active substances are
released more quickly, but also reduces energy use
to the benefit of consumers.
Henkel has worked with Novozymes to develop
powerful enzymes incorporated in its Pril hand
dishwashing liquid to ensure fast and effective
removal of rice, pasta and other starch-based
residues. Thanks to these enzymes and extensive
measures to optimize the product formula, Henkel
is reducing the use of surfactants and lowering its
carbon emissions by more than 10,000 metric tons
per year. This is equivalent to the volume of carbon
dioxide that would be absorbed annually by a
forested area three times the size of Central Park
in New York.
A.I.S.E. Charter for Sustainable Cleaning

In 2005, Henkel became the first company to fulfill
the criteria of the Charter for Sustainable Cleaning
of the International Association for Soaps, Detergents and Maintenance Products (A.I.S.E.). Since
then, more than 200 other companies have committed to the Charter. All companies that sign the
Charter pledge to continuously improve their
processes and to report annually on their economic,
environmental and social advances, using defined
indicators.
As part of its further development, the A.I.S.E.
Charter was expanded in 2010 to include the key
dimension of products. Since then, it has become
possible to show not only that a product was
manufactured by a company with sustainable
business practices, but also that the product itself
has an advanced sustainability profile (ASP). In the
laundry detergents category, for example, four criteria are of particular importance: environmental
safety of the ingredients; resource efficiency with
regard to dosage and packaging materials; washing
performance at low temperatures; and consumer
information.
Laundry & Home Care
Products that satisfy all of the defined requirements may communicate this to consumers on
their packaging by means of the A.I.S.E. Charter
logo introduced in 2011. Initially, our liquid and
powder laundry detergents, fabric softeners and
automatic dishwashing products qualified to bear
the logo. Now, in a second stage, our all-purpose
cleaners and special spray cleaning products
(glass, window, bath, kitchen) are also entitled to
carry the ASP logo.
In 2014, A.I.S.E. launched the European campaign
I prefer 30 with the help of Henkel and other
partners. The goal of the campaign is to encourage consumers to use lower temperatures when
washing laundry. On the website www.iprefer30.eu,
consumers can read more about which textiles
are especially suited for washing at 30 degrees
Celsius and pick up tips on laundering in general.
Caps from Kids. A video and a website available

in all EU languages tells viewers why it is so
important to keep liquid detergent capsules out
of the reach of children. The www.keepcapsfromkids.eu site also provides tips on how to use liquid
laundry detergent capsules safely. This online
education campaign supplements the voluntary
initiative A.I.S.E. Product Stewardship Programme
for Liquid Laundry Detergent Capsules that the
laundry detergent industry in Europe launched at
the end of 2012. For example, the safety pictogram
Keep away from children devised by A.I.S.E. is
printed on the packaging ofliquid laundry detergent capsules from all manufacturers who, like
Henkel, are partners in supporting the product
stewardship program.
www.iprefer30.eu
www.keepcapsfromkids.eu
Since 2014, Henkel has also been supporting the

Europe-wide A.I.S.E. education initiative Keep
Henkel Sustainability#Master Somat Gold in comparison with Somat 10

The innovative multi-functional technology
at temperatures as low as 40 degrees
more water and energy. If all Somat users
incorporated in the Somat 10 and Somat
Celsius. Consumers can save significant
skipped the pre-soak phase, they could
Gold tabs provides impressively powerful
amounts of energy compared with similar
save as much electricity as the total annual
cleaning performance and easy handling. In
cycles at higher temperatures. Somat Gold
consumption of 360,000 households. The
the Footprint dimension, the good solubil-
also offers even more effective cleaning
matrix shows all the hot spots for this
ity is the main factor determining the highly
power, which eliminates the need for long
product category. These are the fields with
effective performance in dishwashing cycles
pre-soaking of dishes and so saves even
the greatest relevance for sustainability.
Raw materials
Value
Production
Logistics
Retailing
More efficient
loading
Performance
Use
Disposal
Cleaning
performance
Health and Safety

Recommended
short programs
Social Progress
Materials and
Waste
Less petrochemical raw materials
Energy and
Climate
More targeted
raw materials
selection
Water and
Wastewater
Footprint
Reduced
packaging
Secondary
packaging
Reduced
emissions
Reduced
dosage
Heated water
for pre-soaking
Water used for
pre-soaking
Eutrophication
potential
Significant improvement
25
A.I.S.E., the International Association

for Soaps, Detergents and Maintenance Products, is an important
partner of Henkel for targeted
communication with consumers on
sustainability matters.
26
Beauty Care
Beauty Care
To ensure that each innovation makes a contribution to sustainability,
Beauty Care reinforces its sustainability management with new
steering instruments, communication channels and partnerships.
Innovation leadership for sustainability
The interactive resource calculator

provided by Dial gives consumers an
opportunity to find out online how
energy use varies depending on the
temperature of the water and the
time spent in the shower.
Our innovative power is a key prerequisite in

achieving our goal of sustainable development.
This goes beyond the resource-efficient manufacture
of our products. Sustainability targets are systematically integrated in each phase of the product life
cycle and range from the choice of raw materials to
innovative ways of addressing consumers regarding
how to use the products. We grasp the opportunities
offered by electronic media and, in line with our
sustainability strategy, we develop solutions that
create more value for our customers and consumers,
and for our company, while reducing our environmental footprint at the same time.
Comprehensive product stewardship

In order to anchor sustainability in the innovation
process, we need integrated systems that supply
information in a user-friendly format that saves
time and costs. With a range of new steering
instruments, Beauty Care has automated the calculation of the environmental footprint of formulas
and packaging and systematically integrated this
into its development process. Thanks to intelligent
interlinking of databases, these tools allow product
developers to measure and control the effects on
the ultimate environmental footprint of a product
even at the early stage of selecting the raw materials.
Linking digital media with innovative products creates

new opportunities to promote sustainable consumption.
Hans Van Bylen, Executive Vice President
Beauty Care
Our strategic partners in the supply chain make an

important contribution to this endeavor as well.
Joint programs to define the requirements on the
environmental data of the raw materials supplied
help us to apply these steering systems worldwide.
In addition to continuously improving the environmental compatibility of our products through the
use of readily biodegradable raw materials, we also
continuously reduce the level of wastewater pollution by our production sites. In our Viersen-Dlken
plant in Germany, which produces hair-coloring
products, we have introduced an intelligent bio-
monitoring system which uses chemical and biological analyses to assure the environmental safety
of the neighboring surface waters.
The holistic approach of thinking in product life
cycles is supported by innovative digital solutions
for efficient steering of the sustainability performance of our products and processes.
Promoting sustainable lifestyles

Achieving a better quality of life and well-being for
as many people as possible within the limits of our
planets resources is a universal social and political
goal. Besides providing personal hygiene for the
skin, hair and teeth, cosmetic products also contribute greatly to the emotional aspects of quality
of life. They help people to look well-groomed,
emphasize their personal style and strengthen
their self-esteem. Our cosmetics and personal
care products, which are used daily by millions of
people worldwide, make a valuable contribution
in this respect. Consequently, we link our ambition
to enhance the quality of life with the will to promote sustainable lifestyles.
Beauty Care
Digital interaction with consumers for sustainable

consumption
Through creative ways of addressing consumers, we join forces with our retail partners to
promote awareness for sustainable lifestyles.
The behavior of consumers when using our
from all over the world were invited to
In numerous collaborative efforts, we make
cosmetic products has a decisive effect on
submit a 60-second video with original
use of the communication channels of our
their environmental footprint: More than
and entertaining ideas for motivating
retail partners to embed the videos there.
90 percent of the energy and water used
people to conserve resources when taking
We see the retail industry as an important
during the life cycle of a rinse-off product
a shower. The jury selected five winners
communication platform for addressing
is accounted for in the use phase.
from the more than 90 videos entered.
consumers directly through online media.
In order to raise awareness of this fact and
The vast diversity of humorous ideas and
We plan to continue driving sustainable
point out ways of using resources respon-
their realization speaks volumes for the ap
consumption in the future by using
sibly in everyday life, Beauty Care orga-
peal of creative communication using digital
new digital communication approaches
nized an international video competition
media. Reaching a broad public, it enthuses
together with our partners.
on a web-based platform. Creative talents
countless people for sustainable lifestyles.
160,000
More
than
is the number of product formulas for

which we have already systematically
determined the carbon footprint thanks
to smart interlinking of raw materials
databases and environmental data provided by our suppliers.
of the energy and water used over

the life cycle of our rinse-off products
is accounted for in the use phase. Our
objective is therefore to encourage
consumers to use our products more
sustainably.
90
180,000
consumers in Europe call Beauty Care
hotlines for advice every year. The employees answering the calls give quick, competent and reliable responses on product properties or ingredients. Consumers are also
welcome to use our social media channels.
27
Product developer Dr. Qian-Yi

Li (left) exchanges views with
Dr. Nils Daecke and Saskia
Schmaus, experts in digital
communication and marketing
at Beauty Care, about the
creative videos that were
generated by a web-based
competition to promote more
sustainable behavior when
taking a shower.
Creative videos encourage

people to use water more
responsibly when showering.
28
Beauty Care
Care series Diadermine N110

The product line Diadermine N110, introduced to
mark the 110th anniversary of the facial care brand,
combines excellent efficacy and compatibility
with a reduced environmental footprint. The body
oil can be manufactured without heating the
ingredients, so that the production process uses
less energy, which significantly reduces the carbon
footprint. Only plant-based oils are used. Through
smart combination of 11 multi-functional active
ingredients, the entire care series provides perceptible anti-aging effects. All skin-care products of
the Diadermine brand have also been recognized
by the European Centre for Allergy Research Foundation (ECARF) for their especially good skin compatibility and particularly low allergenic potential.
Ecocare-Award for
Taft Volume Powder
Marion Trappen and Dr. Joachim
Kremer accepted the award from
the Lebensmittel Praxis retail magazine on behalf of Beauty Care.
The innovative formula of the styling
powder results in a 90-percent
smaller carbon footprint compared
with foam-based products. The packaging uses neither gas propellant
nor resource-intensive aluminum.
Taft Power Hair Lacquer

From life-cycle analyses, we know that our
consumers influence the carbon footprint of our
products to a very large extent. This is especially
true of products that are rinsed off or washed away
after use, mainly because of the energy required
to heat the water. We use the creative potential of
digital media to motivate our consumers to act in
a sustainable manner and develop new ways of
addressing and communicating with them. By
doing so, we aim to enhance the attraction of
sustainable lifestyles.
One example of this is the videos made during
aninternational online competition, calling on
consumers in creative and entertaining ways to
conserve resources when taking a shower. With
our resource calculator, consumers can find out
online just how much their behavior can affect
water use, the environmental footprint, and the
cost of showering, bathing, drying their hair,
brushing their teeth and washing their hands.
The product line Diadermine N110

combines excellent efficacy and
certified compatibility, even for
people with sensitive skin, all with
a reduced environmental footprint.
Together with our retail partners, we use the

formats described to engage with consumers and
make extensive use of digital media. We focus
specifically on the communication channels of
greatest relevance to consumers and adapt the style
of communication to the needs of the different
consumer groups we target. This allows us to
strengthen awareness of sustainable consumption
behavior.
We continue to improve our existing assortments

as well, as part of our commitment to sustainable
development. To cite one example, a new formula
was developed for the Power Hair Lacquer under
the Taft styling brand, which delivers the same
performance with 15 percent less styling active
ingredients than its predecessor. We also use this
innovative technology in other brands, which has
helped us to cut carbon emissions by 800 metric
tons every year.
Advice for consumers and hairdressers

Comprehensive advice for consumers goes hand
in hand with product safety. Advice hotlines have
therefore been set up in most countries where our
products are sold so that consumers can receive
competent, quick and reliable information about
product properties or ingredients. Consumers can
also use our social media channels. In Europe
alone, this results in around 180,000 consumer
contacts each year. Product-related feedback is
documented in our quality assurance system and
channeled into our ongoing product development
processes.
We also support our customers in the Hair Salon
business with in-person product training courses
and web-based seminars. Through the international Schwarzkopf Academy (ASK), we offer an
advanced vocational training program that assists
Beauty Care
hairdressers in a variety of ways in their own

continuing professional development, as well as
coaching them in the proper use of our products.
Brand engagement
The Beauty Care business unit promotes social
progress through a series of social initiatives.
Enabling young people from SOS Childrens
Villages to learn basic hairdressing techniques is
the goal of the Shaping Futures initiative that
Schwarzkopf Professional launched in November
2010. Since then, 200 hairdressers and employees
of Schwarzkopf Professional have volunteered
their time to train more than 800 young people in
the SOS Childrens Villages run by this charitable
organization in 19 countries. Jobs have been
arranged for more than half of the students
trained. In 2014, courses were held for the first
time in the Philippines, Jordan, Poland, Croatia
and Ukraine.
For the ninth year running, Schwarzkopf has been

a sponsoring partner to childrens aid projects
in Germany organized by the Tribute to Bambi
foundation. In 2014, support was provided to
various charities, including TABEA e.V., an organization that helps children and families to come to
terms with loss and overcome crises following the
death of a family member.
Beauty Care has supported the international look
good feel better program since 2006. To help
raise the self-esteem of women undergoing cancer
therapy and give them strength to meet the
challenges they face, the DKMS LIFE patient care
program offers free cosmetic seminars. For the
sixth year in succession, Schwarzkopf is a main
sponsor of the Charity Ladies Lunch, the proceeds
of which go to fund this program.
www.schauma.com
www.schwarzkopf-professional.com
www.lookgoodfeelbetter.org
Henkel Sustainability#Master Gliss Kur Ultimate Repair Shampoo in comparison with the
predecessor product
The Henkel Sustainability#Master reveals
been reduced by 15 percent. The formula
of high relevance to consumers, with
the sustainability profile of the new
contains 5 percent more renewable ingre-
15 percent better wet combability, and
Gliss Kur Ultimate Repair Shampoo. A new
dients. The share of readily biodegradable
38 percent better repairing of split ends.
platform formula was developed for this
substances has been increased by 10per-
The matrix shows all the hot spots for this
product. By optimizing the surfactant
cent. At the same time, the product per-
product category; these are the fields with
combination, the carbon footprint has
formance has been improved in aspects
the greatest relevance for sustainability.
Raw materials
Value
Production
Logistics
Retailing
Use
Disposal
Improved
wet combing
Performance
Health and Safety
Social Progress
Materials and
Waste
Renewable
ingredients
Energy and
Climate
Formulation with
less CO2
Water and
Wastewater
Footprint
Less surfactants
used
Less waste from

pallet utilization
Less energy for
pallet utilization
Biodegradable
ingredients
Heating of water
Less ingredients
in waste water
29
Schwarzkopf Professionals educational initiative Shaping Futures

enables young people from SOS
Childrens Villages to acquire basic
training in hairdressing techniques.
Since the beginning of 2010, more
than 800 youths from 19 countries
have participated in the training
courses.
30
Adhesive Technologies
Sustainability and innovation are inseparably linked. Together, these
two elements drive our commitment to providing leading solutions
that create more value for our customers.
Leading solution provider

Henkel is a leading solution provider for adhesives,
sealants and functional coatings worldwide. The
Adhesive Technologies business unit is constantly
extending this position: We create more value for
customers and consumers everywhere inthe
world by driving powerful innovations and developing leading technologies with sustainability
as an integral part of our product development
processes.
Adhesive Technologies experts partner with customers around the world and are often involved
as early as the design stage. We share our in-depth
industrial expertise to help our customers increase
their resource efficiency and make their manufacturing processes and final products more sustainable. Our comprehensive portfolio of advanced
technologies reduces energy consumption and
carbon dioxide emissions in the manufacture and
use of many objects that touch our lives every day:
from packaging and cell phones, through to automobiles and aircraft.
Sustainability drives innovation

As a global leader across these diverse markets,
Henkel is in a strong position to adapt its solutions
for application in new areas. Our innovative Electro
Ceramic Coating technologies (ECC) are one strong
example of this approach. ECC is used to protect
automotive engine components against wear and
corrosion and enables car manufacturers to use
We work closely with our customers and partners

to provide leading sustainable solutions.
Jan-Dirk Auris, Executive Vice President
lighter metals that cut fuel consumption and emissions in their vehicles. This same technology has
now been successfully adapted to apply a protective
coating to the magnesium chassis on consumer
electronic devices. Our product Bonderite MgC
supports customers in the electronics industry by
simplifying their coating processes, reducing
waste by cutting reject percentages, and eliminating
the need to use coatings based on heavy metals,
such as nickel and chromium, which are less
environmentally compatible.
A proactive approach
We are committed to actively leading the way
forward for sustainability across our industries, and
collaboration with strategic suppliers is a key s uccess
factor for us. It opens up opportunities tomeet our
customers needs through joint innovation. Adhesive
Technologies recognizes outstanding supplier performance with three annual awards in the categories
of innovation, performance and sustainability that
underscore our commitment to driving quality and
sustainability along the entire value chain.
Alongside this, we take a proactive approach to
reducing our products environmental footprint
atevery stage of the product life cycle. From early
in 2015, all of our 50- and 250-milliliter red bottles
for anaerobic Loctite products in Europe will
be made using arenewable-based material, for
example. This willsave almost 1,000 metric tons
of carbon dioxide equivalent per year.
Innovating together for sustainable solutions

Our 90-year history of developing innovative solutions enables us to support our customers with
both expertise and a comprehensive technology
Leading the way for food-safe packaging
Fatima Martins, analytical

chemist, and her colleague
Dr. Eric Strittmatter develop
customized solutions for
food-safe packaging at the
Henkel research site in
Bridgewater, New Jersey, USA.
As a technology and innovation leader, Henkel drives the food packaging industry forward
with its comprehensive solution portfolio and expertise in safety and sustainability.
Packaging safety is a key topic in the food
sealing, flexible laminate packaging and
developers and other stakeholders in this
industry, and a large number of food
much more, we offer technologies that
industry. Customers value us as a trusted
packages contain Henkel adhesives. The
ensure consumer safety and support
partner, and rely on our expertise to pro-
Adhesive Technologies business unit
resource efficiency in use. Experts from
tect their brands by providing adhesives
provides customers like Nestl with
Henkel play a central role in increasing the
that meet the highest requirements for
innovative solutions that deliver product
safety of food packaging through working
quality, safety and compliance. Our global
quality while also ensuring packaging
together with legislative organizations.
network of experts works together with
safety.
Our knowledge platform, the Food Safe
industry-leading customers from as early
We develop tailor-made adhesives for our
Packaging Portal, raises awareness and
as the design stage.
customers specific products and pro-
makes expertise available to food safety
cesses. From labelling through to carton
officers, quality managers, packaging
19
300
815
from Henkel experts can be found on the

Food Safe Packaging Portal. They offer
detailed technical insights into topics
ranging from migration and testing
through to food contact legislation and
risk minimization.
from stakeholder groups and experts

from across industries attended six Food
Safe Packaging Forum events around the
world in 2014. The events serve as a platform for knowledge sharing and open
exchange.
engaged in dialog with Henkel experts

during 10 webinars hosted on the Portal
in 2014. This interactive format provides
an opportunity to gain further knowledge
and gather new expertise on a range of
key food-safe packaging issues.
whitepapers
representatives
participants
31
Henkels Food Safe Packaging

Portal supports customers
with everything they need to
know about food safety and
food packaging.
32
bottles. The unique range of casein-free adhesives

reduces material consumption, improves process
efficiency, and enables Becks to apply all labels,
films and foils used in its plant with one all-rounder
adhesive.
Car repair portal

Henkels unique digital platforms
support customers in the Vehicle
Repair and Maintenance market.
Mechanics and car lovers can gather
product information and exchange
tips for using Loctite products in
the most effective and efficient way,
with the lowest possible environmental footprint.
Henkel is also actively driving forward innovations

for filtering water and air. Our leading s olutions,
under our Loctite and Technomelt brands, signi
ficantly reduce energy consumption during the
manufacture of filters while reducing machine
maintenance requirements and enabling faster
cycle times. Our polyurethane technologies for
water filters remove the need for a cooling stage,
saving energy and water while reducing costs for
our customers.
portfolio. We work closely with our customers to
understand their specific processes, products and
markets. This allows us to support them in achieving their own sustainability targets by developing
tailor-made solutions that increase resource efficiency and reduce environmental footprint.
As an innovation and technology leader, we are
inthe position to analyze and respond to future
trends. Together with Benteler SGL, a leading manufacturer of automotive components, Henkel has
developed a composite-leaf spring that supports
Volvo with the trend toward lightweight vehicles
that consume less fuel and produce less emissions.
The leaf spring is 4.5 kilograms lighter than a conventional part and is used in the new Volvo XC90,
with plans for application in additional models.
Henkel experts work together with aircraft manufacturers around the world to develop processes
and solutions for applying lightning-strike
protection films. These technologies are designed
for application on the external structure of modern
aircraft with composite structures. The range
of innovative solutions from our Loctite brand
protects aircrafts against lightning strike and
combines high surface quality with improved
aerodynamic properties. This enables customers
to significantly reduce overall aircraft weight, fuel
consumption and emissions.
Our digital platform provides

mechanics and car lovers with
tips for using Henkel products
sustainably.
Experts from our Innovation Organization worked

together with AB InBev at the production site for its
brand Becks in Bremen, Germany, to create Aquence
XP. This is a new-generation labelling adhesive
based on synthetic raw materials for returnable
Creating more value for the customer

Collaboration with equipment manufacturers is
also key to our approach to creating more value for
our customers. Together, we develop application
systems that are optimized for our shared customers processes. These systems enable customers to
cut material waste, increase energy efficiency, and
rely on outstanding quality that is specifically
adapted to their needs.
Our partnership with machine manufacturers
Homag Group and Cefla is one such example.
Together, we have developed innovative processes
for applying our adhesives and coatings in the
furniture industry. As the trend toward urbanization
changes the way people live, our solutions open up
new design possibilities for innovative furniture
that combines functionalities while using fewer
resources. These solutions provide high quality
throughout a longer product life. They also create
more value for manufacturers and end-consumers
by cutting resource consumption during the man
ufacturing process.
Henkels leading solutions also enable customers in
the electronics industry to create more innovative
designs while making a significant contribution to
sustainability. The easy-to-use encapsulating products under our Technomelt brand are just one example: These products protect components against
moisture, dust, vibration and strain. Customers like
Cavist Manufacturing, based in North America, have
been able to simplify their assembly processes,
remove the need to use chemicals to clean equip-
ment and replace traditional liquid potting processes that released toxic fumes during application.
Transparency through life-cycle assessments

We are aware of our responsibility as a global
leader in adhesives and demonstrate our progress
in sustainability in a transparent manner. The
expert knowledge of our research and development
staff and the use of life-cycle assessments help
us identify possibilities to improve our product
portfolio. As well as the production of our solutions, we also take into account customer use
and customer production processes. We use the
Henkel Sustainability#Master matrix (see page 19)
to assess the sustainability of a product category
based on our value chains and six focal areas.
Advice, training and dialog

Our understanding of quality does not end with
the sale of high-performance products. We also
provide advice and service to our customers

all over the world. This allows us to maintain a
continuous dialog with our customers and train
them in using our products and technologies
safely and efficiently. We also take every opportunity to strengthen our customers awareness of the
issue of sustainability and demonstrate how our
innovative solutions can help them reduce their
footprint and increase resource efficiency.
The Henkel Customer Training Center in Vienna,
for example, provides stakeholders from the construction industry with an opportunity to speak
toHenkel experts about the optimal ways to use,
apply and maintain our leading construction
solutions. By interacting with customers in this
way, we are able to make sure that the high-
quality solutions we offer meet their exact
requirements for sustainable construction. This
supports our ongoing commitment to dialog
and knowledge sharing, and gives potential and
existing customers a space where they can acquire
expert knowledge of sustainable practices and
further strengthen their practical skills.
Henkel Sustainability#Master Bonderite Magnesium Coating process in comparison with

industry standard process
The Henkel Sustainability#Master shows
success in the market for automotive
cesses. It increases production output
the sustainability profile of the Bonderite
body panels, Bonderite MgC is now being
and cuts scrap while delivering excellent
Magnesium Coating (MgC) process, an
used in light-metal applications for con-
metal protection and paint adhesion, and
innovative Electro Ceramic Coating (ECC)
sumer electronic devices. The sustainable
preserving the desired metal look, touch
technology used to apply protective coat-
technology decreases carbon footprint by
and feel. The matrix covers all product
ings to magnesium alloys. Building on
simplifying customers production pro-
category hot spots.
Industrial
processing
Service/Use
Performance
Increased
productivity
Increased
durability
Health and Safety
Solvent- and
heavy-metal-free
Social Progress
Eliminates
manual buffing
Materials and
Waste
Less rejects
Energy and
Climate
Reduced energy
consumption
Water and
Wastewater
100% water
recycling
Raw materials
Value
Footprint
Production
Logistics
Disposal
Easier recycling
33
Pritt liquid glue is now based on a

new formula that is even safer for
children to use. Like the popular Pritt
glue stick, the range of liquid glues
issolvent-free and now also based
on 90 percent natural ingredients
thanks to the use of starch.
34
Our people
Our people
Our shared vision and actively practiced corporate values are the
elements that unite us worldwide in our internationality and diversity.
They also build the basis for our business success.
Our human resources management
Attracting new talent
Henkel is a globally operating company with over

80 percent of its employees working outside of
Germany. We employ people from over 120 nations
in more than 75 countries. Our Code of Conduct
establishes the framework for how employees
behave and act. It defines detailed and precise
requirements for interacting with customers,
colleagues, shareholders, competitors and society.
To achieve our strategic corporate goals, we need

excellent managers, employees and teams. In order
to strengthen our standing as a preferred employer,
we have once again broadened the informational
scope of our career website with a special focus
on emerging markets. We have also taken into
account that applicants are becoming increasingly
interested in sustainability and our performance
in this area.
Based on our vision and our corporate values, we

introduced new Leadership Principles in 2012.
These principles state what we expect from our
managers and contribute to the positive development of our company. Furthermore, we have
consistently integrated the principles into the
performance evaluations.
We value our employees and their contribution
to the companys success. We assess and promote
them regardless of their nationality, gender and
generation/professional experience. Our job
vacancies are filled solely based on competence,
performance and potential. In an appreciative
corporate culture, it is vital to identify and eliminate
potential prejudices that could restrict individual
development opportunities. To assist our efforts
in this respect, we introduced a global campaign
in2014 designed to raise awareness among our
employees on the subject of Diversity & Inclusion
(see page 37).
Our diverse workforce and inclusive company

culture are key factors for our global success.
Kathrin Menges, Executive Vice President
Human Resources and Infrastructure Services
To inspire new colleagues right from the beginning, we launched our onboarding program
i4Henkel worldwide in 2014. Since then, all new
management employees have already participated
in the program.
Developing a culture of leadership

Nurturing leadership is important to Henkel and
relevant on all levels of the organization. In this
context, we initiated a weeklong digital exchange
on leadership in cooperation with the Harvard
School of Business. Employees in lower and
middle management participated in a worldwide
discussion with each other on our leadership
principles. We also developed a new program in
2014 in collaboration with the Harvard School of
Business. Our aim is to further prepare our top
executives for the strategic challenges of a global
environment.
In order to further develop our pipeline of strong
leaders, we rolled out our EXCEED program in 2014.
This nine-month program provides outstanding
employees the opportunity to work directly with
regional top management on business projects.
Our people
Spreading the sustainability message

More than 3,800 Henkel employees have become Sustainability Ambassadors since the
programs start in 2012.
If we want to achieve our goal of tripling
ees more deeply on the topic of sustain
dors have educated about 36,000 children
the value that we create compared to the
ability. Since then, Henkel has trained
in 37 countries.
environmental footprint of our products
more than 3,800 Sustainability Ambassa-
In 2014, we expanded the program with
and technologies by 2030, we need every-
dors including all Management Board
our (Y)OUR MOVE toward Sustainability
one to contribute. That is why we strive to
members in 70 countries.
campaign. Rolled out in all regions, the
give our employees a clear understanding
Ambassadors are encouraged to visit ele-
campaign encourages employees to con-
of sustainability and enable them to convey
mentary schools in order to explain the
tribute to a sustainable society in their
the importance of sustainability to others.
concept of sustainability by means of sim-
everyday lives through simple tasks such
Our Sustainability Ambassador program
ple, everyday examples. Since the start of
as turning off lights and printing less.
was launched in 2012 to engage employ-
the program, the Sustainability Ambassa-
More
than
3,800
employees have become Sustainability

Ambassadors since the program began in
2012. The program is one of Henkels most
important sustainability training initiatives
within the last three years.
36,000 37
About
schoolchildren have participated in

sustainability workshops. Our ambassadors
explain what sustainability means in
day-to-day life and how everyone can
make a difference.
countries
around the world have now been reached

through the Sustainability Ambassador
program. We plan to roll out the program
in further countries in order to reach as
many children as possible.
35
Elisabetta Marangoni, Media

and Digital Director for Laundry
& Home Care in Italy, listens
toa student at the Istituto
Comprensivo Teodoro school in
Milan, Italy. Marangoni is one of
Henkels 3,800 Sustainability
Ambassadors worldwide.
Uta Steffen-Holderbaum, Director

Sustainability Laundry & Home
Care, explains the history of
theSustainability Ambassador
program.
36
Our people
Diversity contributes to corporate success

Workplace diversity and an inclusive company
culture are vital for our success worldwide. Our
diversity is represented explicitly via diverse
cultures, generations and gender and implicitly in
individual skills, experience, attitudes, values
and ways of thinking.
Board and managers worldwide have shown their

commitment to this way of working. Since its
launch in 2012, Henkel has extended various flexible
working models to all countries in compliance
with local laws and further developed its culture
based on results rather than presence.
Continuous training and education

In 2014, we continued programs that allow our
employees to realize their full potential. These
include comprehensive diversity eLearning
courses and training; individual workshops;
unconscious bias awareness trainings; and global
mentoring programs.
By systematically supporting female career development, we have continuously increased the share
of women in management positions from a good
23 percent in 2004 to around 33 percent at the end
of 2014.
Work-life flexibility
Henkel recognizes the importance of work-life
flexibility in enhancing performance, motivation
and productivity on a sustainable basis. Flexible
working models are important in the competition
for the best talents. A trust-based approach with a
focus on performance rather than physical presence is the way to create both excellent results and
personal flexibility. By signing our global Charter
of Work-Life Flexibility, the Henkel Management
A diverse workforce and ever-shifting demands

require individual methods of learning. Henkel
encourages employees to develop their knowledge
and skills according to their individual needs.
Day-to-day learning in the workplace as well as
jobrotations have proven to be some of the most
successful ways to engage in new knowledge and
skills.
Giving employees an opportunity to gain inter
cultural experience by working in other countries
continues to be a key component of personnel
development. In 2014, more than 650 employees
worldwide participated in job rotations.
We also provide our employees with training
courses for professional and personal development.
In addition, our constantly expanding online
learning platform, eCademy, offers all employees
apossibility for continuous learning. Interactive
courses, videos and online information sources
are available on demand and can easily be incorporated into individual working schedules.
Performance-based compensation
Henkel Innovation Challenge

In the seventh Henkel Innovation
Challenge (HIC) in spring 2014,
21teams comprised of students from
30different countries presented their
innovative and sustainable ideas for
the future. The international competition gives university students the
chance to try out the role of creative
business development manager and
create a concept for a Henkel product
or technology for 2050. Photo:
Seul-ah Yang (left) from the Ewha
Womens University und Han-byeol
Jang, Seoul National University.
Recognition of individual performance on the

partof our employees through fair compensation
in line with market practices is a fundamental
component of our corporate culture. There is no
systematic difference between the compensation
received by male and female employees.
To reward personal performance, the salaries of
about 10,450 managerial employees include
success-related components. The annual individual
performance assessment has a significant influence
on these bonus payments. The incentive systems
for our non-managerial employees take local
requirements and existing collective agreements
into account.
Our people
37
Diversity & Inclusion

campaign 2014
Our 2014 global Diversity & Inclusion
campaign supported our companys
culture, where the appreciation of
differences goes hand-in-hand with
the way we interact with each other.
The slogan Inclusion starts with I
highlighted the importance of every
single employee when it comes to
inclusive behavior in the workplace.
Italian artist Guido Danieles paintings on fingers (left) were a powerful
visual during the campaign and illustrated diversity at Henkel.
Regarding bonus payments, the assessment of

employees relevant performance is always done in
the context of our vision and our corporate values.
This includes contributions to our sustainability
strategy and targets, if they fall within the sphere
of influence of the employee concerned and have
a clear bearing on business performance. Furthermore, in their annual target achievement meetings,
each employee must confirm compliance with all
applicable legal regulations and Henkel standards.
Human rights and social standards
Global health management
Our Social Standards, which we introduced in 2006,

serve as a framework for decision-making within our
sphere of influence, also in relation to human rights
and fundamental labor rights. They are derived from
the guidelines of the International Labor Organi
zation (ILO), the Global Compact, the OECD Guidelines for Multinational Enterprises, and the Social
Accountability Standard (SA 8000). Through
in-person and eLearning training courses and local
ambassadors, we ensure that our social standards
are firmly anchored. Compliance is verified on a
regular basis as part of our Group-wide audit program.
We are aware of and assume our responsibility

to support and respect the protection of human
rights within our sphere of influence. As long ago
as 1994, we declared in our corporate mission that
we respect the social values of the countries and
cultural spheres in which Henkel operates. We
underscored this when we introduced our Code of
Conduct in 2000 and when we joined the United
Nations Global Compact in 2003.
Training categories in2014
We care about the health and performance capability of our employees. We offer targeted health and
preventive programs to guard against workplacerelated risks that might lead to long-term illnesses.
In designing these programs, our sites determine
different priorities based on local requirements. In
order to better implement these programs, all
Henkel sites worldwide report on four key figures
each quarter: availability of first aiders and emergency medical care, the number of occupational
health exams, and the occurrence of occupational
illness.
www.henkel.com/careers
www.henkel.com/diversity-and-inclusion
www.henkel.com/our-employees
31% Professional knowledge

29% Processes, technologies
and tools
18% Soft skills and

communication
14% Corporate and business

unit-specific initiatives
8% Management and
leadership competence
38
Social engagement
Social engagement
Together with our employees, retirees, customers and consumers,
Henkel and the Fritz Henkel Stiftung foundation support social
projects around the world.
Our approach
Brand engagement
Corporate citizenship has been an integral part

of our culture ever since our establishment by
Fritz Henkel in 1876. This is supported by the four
pillars of our corporate citizenship program:
corporate volunteering, social partnerships,
brand engagement and emergency aid. The creation of the Fritz Henkel Stiftung foundation
in 2011 underscores our commitment tosocial
involvement that goes beyond direct business
interests.
Henkel also provides support for many social

projects via its brands. Through Projekt Futurino,
Persil provided 150,000 euros in support of 54developmental and educational projects Germany-wide
in 2014. The projects aim to make children more
aware of nature and the environment.
Corporate volunteering
At Special Olympics Germany in
Dsseldorf in May 2014, 52 Henkel
employees supported some of the
4,800 athletes throughout the weeklong event. Here, Henkel employee
Kerstin Molinero Alvarez congratulates an athlete after his competition.
Since its launch in 1998, the Make an Impact on

Tomorrow (MIT) initiative has supported the
volunteer work of Henkel employees and retirees
in over 11,500 projects in more than 50 countries
around the world. These projects are as diverse as
our company itself: From providing bicycle training
for schoolchildren in India to helping with reforestation in Mexico, volunteers from Henkel were
active in 37 countries in 592 MIT projects in 2014.
Together with SOS Childrens Villages and UNESCO,

Schwarzkopf Professional expanded its Shaping
Futures project to five additional countries in
2014. The project, which provides hairdressing
training for disadvantaged young people, started
courses in Croatia, Poland, Jordan, Ukraine and
the Philippines.
In an effort to support the long-term urban revitalization of Belgrade, Henkel Serbia commissioned a
mural for the side of a building for the third year in a
row in 2014. Swiss artists Pablo Tongi and Christian
Rebecchi used Ceresit Visage products to create the
mural, which was unveiled during the Mikser Art
Festival in 2014.
Emergency aid
Social partnerships
Supporting equal opportunity in education
through social partnerships is a top priority for the
foundation. In 2014, it continued its partnership
with Teach First Deutschland, a program that
supports university graduates who work as fellows
in schools with socially disadvantaged students.
For an in-depth look at our social

engagement projects, please see our
annual magazine Together.
The mentoring project Learning for a life without

poverty for children in South Korea supports
socially disadvantaged children. Here the children
have the opportunity to study for school and receive
support in language education.
The foundation provides quick emergency aid

after natural disasters around the world. In April
2014, it provided financial donations to the Salvation Army of Arkansas in the USA after tornados
devastated parts of the state. After flooding in
theBalkans in May and in Michigan in the USA
inAugust 2014, Henkel organized product and
monetary donations for the affected regions.
www.henkel.com/corporate-citizenship
www.fritz-henkel-stiftung.com
Social engagement
Helping women get back to work

After winning a 50,000 euros grant as an MIT Anniversary Project in 2013, a team of Henkel
employees helped several unemployed Polish women get back on the job market.
Losing a job doesnt just mean loss of
the project was able to address both social
The project has already seen its first
income; it can also mean a loss of a feeling
and professional needs through several
successes. By October 2014, 27 women of
of self-worth and ones place in society.
initiatives. During the course of the project,
the 60 involved had already found new
The first round of On The Way To Work
21 women from Henkel Polska worked
jobs. Others are participating in recruit-
ran from October 2013 through June 2014
together with the participants to build
ment processes or in additional vocational
and was designed to help 60 long-term
supportive and empowering relationships.
training in order to gain new skills to start
unemployed Polish women to successfully
Dorota Strosznajder, the projects origina-
new career paths. The second round of the
come back on the job market.
tor and leader from Henkel Polska, said
project began in October 2014 with
Coordinated in cooperation with Henkel
the volunteers from Henkel acted as men-
another group of 20 long-term unem-
Polska and the Warsaw-based Fundacja
tors and role models, sharing their own
ployed women.
Miejsce Kobiet (Womens Place Foundation),
experiences.
2,272
2,265
of paid time off were given to Henkel

employees in order to participate in team
volunteering in 2014. With these hours,
Henkel helped about 4,800 people
worldwide.
were supported by Henkel all over the

world in 2014. The projects represented
all four pillars of our corporate citizenship
program and spanned the areas of social
needs; education and science; health
andfitness; arts and culture; and environmental issues.
hours
social
projects
8.2 m
in financial donations were provided by

Henkel and the Fritz Henkel Stiftung
foundation in 2014. The donations helped
more than one million people worldwide.
39
Henkel Poland Communications

Director Dorota Strosznajder
(middle) and her p
roject partners Agnieszka Kramm (left)
and Anna Jachimiak of the
Fundacja Miejsce Kobiet
(Womens Place Foundation)
are leading the project for
long-term unemployed women
in Poland.
Dorota Strosznajder explains

how Henkel helps long-term
unemployed women get back
on the job market.
40
Stakeholder dialog
Stakeholder dialog
We regularly exchange views with our stakeholders on the challenges
of sustainable development and how to solve them. This promotes a
mutual understanding while providing us with valuable insights.
Aims of dialog
Stakeholder dialog is an integral part of Henkels
sustainability strategy. We continuously seek
and maintain dialog with all relevant stakeholders,
including customers, consumers, suppliers,
employees, shareholders, local communities,
government authorities, associations, nongovernmental organizations, politicians and academia.
In 2014, we conducted a systematic survey with
stakeholders in key markets. It highlighted the fact
that our target groups expect us to make sustainability an integral part of our business model. Other
points of importance to these stakeholders were the
consideration of social values and building partnerships with nongovernmental organizations.
We are active in a number of dialog platforms and
initiatives on issues related to sustainability.
This helps us gain a better understanding of trends
and challenges. This also gives us the opportunity
to develop trendsetting concepts and help shape
their realization. This is why it is a priority for us

to participate in scientific and political discussions
on future frameworks.
Open dialog helps us understand which aspects
of sustainable development are of interest to individual stakeholder groups. When we engage our
stakeholders in early and thorough conversations
about future social challenges, we are able to
consider these ideas in our plans and actions. This
open exchange is the basis for mutual understanding and an opportunity to achieve social acceptance
of our entrepreneurial decisions. At the same
time, the dialog is a source of new ideas for the
company and allows us to identify potential risks
at an early stage.
Therefore, dialog makes an important contribution
to our innovation and risk management while
forming the basis for the further development of
our sustainability strategy and reporting. It also
allows us to share our knowledge and put it to use
on a broader scale.
Integrated dialog
Seventh German
Sustainability Day
At the German Sustainability Day
in 2014, experts from Henkel offered
insights into our Sustainability
strategy. Here, Christine Schneider
(left), Sustainability Manager Laundry & Home Care, is in discussion
with Christine Denstedt, Executive
Expert from the REWE-Group.
All Henkel employees are called upon to assume

responsibility in their working environment and
to base their decisions on the principles of sustainable development. For many of our employees,
this includes regular dialog with stakeholders.
This ensures that the appropriate experts in our
company and relevant stakeholder groups can
engage in discussion on specific local and regional
challenges. We are thus able to develop strategies
and solutions where they are assessed and put into
practice. The instruments, topics, duration and
intensity of the dialog are aligned to the individual
stakeholder groups and their specific issues.
Stakeholder dialog
41
Sustainability
Made in Germany
Henkel Greater China President
Faruk Arig (right) was one of six
representatives of German and
Chinese companies at the Sustainability Made in Germany forum
inBeijing. Here, the experts
discussed sustainability issues and
their effect on the future. Arig spoke
about Henkels perspective on how
to drive sustainability effectively.
Over the course of the last year, Henkel employees

worldwide met with politicians, scientists and
scholars, businesspeople and members of the public. In 2014, Henkel took part in around 120 sustainability events in 20 countries. Some examples:
At the Global Green Economic Forum in Singapore,
experts from around the world discussed ideas for
viable solutions to challenges on the way to building a sustainable economy. Here, Daniel Rudolph,
Henkel Singapore President, explained how being
a leader in sustainability offers companies a competitive advantage with customers and investors as
well as current and potential employees.
At the Beauty and Personal Care Products Sustainability Summit in the United States, retailers and
key players in the beauty and personal care industry
came together to discuss product sustainability.
The goal was to prioritize the issues of greatest
concern and potential opportunities for collaborative action. Dr. Pete He, Henkel Senior Research
Fellow Laundry & Home Care, explained Henkels
approach to the responsible use of chemicals.
Experts discussed innovation and the relevance of
sustainability for investors at the 2014 international
Corporate Social Responsibility conference at

the Humboldt University in Berlin. Jean-Baptiste
Santoul, Henkel France General Manager for
Laundry & Home Care, explained the importance
of credible incorporation and communication of
sustainability in products. Renata Casaro, Henkel
Head of Investor Relations, stressed the importance
of sustainability to create value.
Dialog with politicians and government

authorities
Policymakers and government authorities often
seek out the expertise of companies in their political decision-making processes. Within this context, it is possible for us to describe how political
considerations impact Henkel, our employees and
business partners and for us to provide pertinent
experience-based knowledge. Our worldwide
Representation of Interests in Public Affairs
standard provides clear guidance on conduct for
this. We also openly provide information about
our fields of interest and the scope of our work
involving governmental or political affairs through
our entry in the Transparency Register of the European Union.
42
Stakeholder dialog
We are active in a number of dialog

platforms and initiatives on issues
related to sustainability. Find out
more about our key issues and
stakeholders and our positions on
complex questions.
The same applies when we collaborate with

associations. Henkel participated, for example,
in the Consumer Goods Forum (CGF), the Sustainability Consortium, the World Business Council
for Sustainable Development (WBCSD) and the
International Association for Soaps, Detergents
and Maintenance Products (A.I.S.E.) in 2014
to further develop a common methodology for
measuring the contribution that products make
to sustainability along the value chain.
Henkel plays an active role in the European Commissions Single Market for Green Products initiative, which aims to establish standardized and
transparent methods of calculating the environmental footprint of both organizations and products. Henkel has supported the A.I.S.E.s application to the Product Environmental Footprint (PEF)
pilot phase for household liquid laundry detergents
that was accepted by the European Commission
in 2013. Through the end of 2016, Henkel will
carry on participating in the pilot project with the
objective of developing accurate and meaningful
environmental declarations for our product
categories.
Identification of key issues

Society and businesses alike are facing many
different global challenges. In order to establish
which topics are relevant to our business activities,
we analyze sustainability challenges using a variety
of instruments and processes and assess their
significance for the company. In doing so, we
engage in dialog with sustainability-focused institutions, international rating agencies and analysts,
and academia. We also consider the assessment
criteria of various financial and sustainabilityoriented ratings and the guidelines of the Global
Reporting Initiative (GRI). The results of this continuous process are structured on the basis of our
six focal areas for driving sustainable development
worldwide through our products and business
activities (see graphic).
www.wbcsd.org
www.theconsumergoodsforum.com
www.globalreporting.org
In dialog with stakeholders: identification of key topics for our sustainability management
External
challenges
Processes/
instruments
Population
growth
Trend and
market analyses
Rising
consumption
Dialog
with experts
Scarcity
of resources
Strategy
development
Degradation and
depletion of
ecosystem services
Reporting
and ratings
Climate change
Increasing
regulatory controls
Risk
management
...
Results/
relevant topics (selection)
Business performance
Quality
Reliability
Convenience
Eco-efficiency
Occupational safety
Plant safety
Product safety
Registration, Evaluation,Author
ization of Chemicals (REACH)
Alternative test methods
Responsible product labeling
Hygiene
Fair business practices

Human rights
Fair working conditions
Employee development
Diversity
Supplier relationships
Corporate volunteering
Resource consumption
Renewable raw materials
Sustainable palm (kernel) oil
Packaging and waste
Bioplastics
Recycling
Biodiversity
Operational energy efficiency

Renewable energies
Energy-efficient products
Transport and logistics
CO2 mitigation
CO2 footprint
Scarcity of water
W
ater consumption in production
W
astewater and wastewater
disposal
Biodegradability
Water footprint
...
Materiality analysis: We use a series of different instruments and processes to analyze global challenges and identify topics of relevance for Henkels sustainability
management and reporting.
External ratings
External ratings
Our assessment and recognition by sustainability experts increases
market transparency and provides important feedback on how well
we are implementing our sustainability strategy.
Ratings and indices 2014

Henkels performance in sustainability impressed
external experts again in 2014.
For more information on external ratings:

Included in DJSI since 1999
Included for 14 years running
Listed since 2002
Zurich/New York: Included in the Dow

Jones Sustainability Indices since their
launch in 1999, ranked eight times as
industry leader.
London: Henkel has been included inthe

FTSE4Good ethical index for 14 consecutive years.
Paris: In 2014, Henkel was once again

listed in the Ethibel Excellence Europe and
Excellence Global sustainability indices.
Henkel included again
Listed since 2010
Prime Status
Paris: Based on a corporate rating by

Vigeo, Henkel was again included in 2014
in the Euronext Vigeo World 120, Europe
120 and Eurozone 120 sustainability indices.
Hamburg: In 2014, Henkel was again

one of only 50 companies worldwide to
be listed in the Global Challenges Index.
This index was developed by the Brse
Hanover and the sustainability strategy
agency Oekom Research AG.
Munich: Henkel was again recognized by

Oekom Research with Prime Status. With
the rating B, Henkel was among the best
companies in the consumer goods sector.
Listed for the fourth time
Best in sector
Listed in global ESG Indices
Zurich: In October 2014, STOXX Limited

again included Henkel in the STOXX
Global ESG Leaders Indices.
Frankfurt am Main: In the Sustainalytics

2014 sustainability ratings in terms of the
environmental, social and governance
issues (ESG), Henkel is the world leader in
Household & Personal Products compared
with other companies in the sector.
New York: Henkel is represented in the

sustainability indices MSCI World ESG and
MSCI Europe ESG. Companies listed in
these indices exhibit strong opportunity and
risk management based on environmental,
social and governance topics.
43
44
Indicators
Indicators
The indicators we record throughout the company help us to identify
potential improvements, steer programs and monitor target achievement.
Creating transparency
We report on the progress ofother

environmental indicators, such as
emissions ofsulfur dioxide, nitrogen
oxides and dust, and the useof chlorinated hydrocarbons, on the internet:
framework of our internal audit program. Any

differences discovered or reported at a later date
are corrected retroactively in our reporting system.
Since our production structures are constantly
changing due to the start-up of new sites or
closure of existing sites, for example the number
of sites contributing data changes accordingly:
from 193 in 2009 to 163 in 2014. To ensure the
comparability of the annual data, we also show
their progress as an index relative to the volume
ofproduction.
The indicators we record throughout the company

offer transparency. We show the progress of each
of our indicators over a five-year period. In this
Sustainability Report, we focus on the publication
of our globally relevant core indicators. We provide
information on other environmental parameters
on the internet.
Environmental indicators for

our production operations
Employee indicators
The production-related data for 2014 were determined at 163 of 169 Henkel sites in 54 countries. The
data represent more than 99 percent of our production volume in 2014. They are validated centrally for
year-end reporting and verified locally within the
Occupational accidents are registered using a globally uniform reporting system. 99 percent of Henkel
employees are covered. The published employee
indicators also cover 96 percent of our employees.
Long-term trend: Sustainability performance from 2004 to 2014

Environmental indicators per metric ton of output, occupational accidents per million hours worked; base year 2004
120
Base year for the 2012

targets (achieved ahead
of schedule in 2010)
100
Base year for

the 2015 targets
80
40
45%
46%
59%
20
77%
60
2004
Water
2005
2006
Energy
2007
Waste
2008
2009
2010
2011
2012
2013
2014
Accidents
We have been working to increase the efficiency and safety of our production processes for decades. Our sustainability performance
overthe past 11 years illustrates this very clearly. In all three business units, our optimization efforts focus on improving value c reation
andoccupational health and safety in our production operations while reducing our environmental footprint. Building on the progress
achieved, we aim to reduce our energy and water use, our waste footprint, and the accident rate still further (see page 4).
Indicators
Production volumes
Environmental
indicators
Energy consumption
In thousand
metric tons
2010
2011
2012
2013
2014
In thousand
megawatt hours
2010
2011
2012
2013
2014
Production volumes
7,432
7,498
7,574
7,690
7,867
Bought-in energy
802
670
664
648
650
Coal
119
119
112
114
96
Fuel oil
178
167
141
123
113
Gas
1,378
1,295
1,291
1,280
1,236
Total
2,477
2,250
2,208
2,165
Index: Change from 2010 to 2014
+6%
Due to the improved economic situation and increasing global

demand, our production volumes have been rising again since
2010.
2,094
20%
Bought-in energy is electricity, steam, and district heating that is

generated outside our sites.
Carbon dioxide emissions

In thousand
metric tons
Emissions of volatile organic compounds

In metric tons
2010
2011
2012
2013
Emissions of
volatile organic
compounds
374
336
336
312
2014
2010
2011
2012
2013
2014
Henkels own
carbon dioxide
emissions
365
345
335
329
311
Carbon dioxide
emissions from
bought-in energy
382
333
339
326
330
Total
746
678
674
655
Since 2008, additional measures have been implemented to

reduce emissions of volatile organic compounds. The rise in
2010 is due to the increase in production volume and shifts in
the production portfolio.
641
19%
Energy generation accounts for almost all of the carbon dioxide

released as a result of Henkel activities. The values include carbon
dioxide formed during the generation of bought-in energy at
non-Henkel sites. During an update of our database, we identified
an incorrect conversion factor and adjusted the data for 2010
through 2013 accordingly.
Water consumption and volume

of wastewater
310
22%
During our internal data verification, we identified emissions

sources that had not been recorded previously. The data for
2010 through 2013 have been adjusted accordingly.
COD emissions
to wastewater
In thousand
cubic meters
In metric tons
2010
2011
2012
2013
2010
2011
2012
2013
2014
Water
consumption
COD emissions
to wastewater
8,358
7,148
6,031
5,746
8,880
8,190
7,792
7,881
7,615
Volume of
wastewater
4,162
3,792
3,465
3,282
3,093
Chemical oxygen demand (COD): Measure of the pollution of

wastewater with organic substances.
Index: Change
from 2010 to 2014
Water consumption
19%
Volume of wastewater
30%
2014
6,339
36%
Because water is lost by evaporation and water is contained in

many of our products, the volume of wastewater is smaller than
the volume of water consumed.
Emissions of heavy metals to wastewater

In kilograms
Zinc1
Waste for recycling and disposal
2010
2011
2012
2013
2014
489
520
375
359
393
Lead, chromium,
copper, nickel2
383
356
287
260
189
Total
872
876
662
619
582
37%
1 During our internal data verification, we identified emissions

sources that had not been recorded previously. The data for
2010 through 2013 have been adjusted accordingly.
2 Particularly hazardous heavy metals, such as mercury and
cadmium, are not relevant in our production.
In thousand
metric tons
2010
2011
2012
2013
2014
Waste for recycling
94
93
82
88
69
Hazardous waste
for disposal
15
15
15
18
18
Waste for disposal
49
45
41
50
50
158
152
138
155
137
Total

Share of
construction waste
16
18%
13
13
28
20
Index
The index in the tables shows
the progress of the specific
indicators relative to the volume
of production (per metric
ton of output). The base for
the index is the year 2010
(= 100 percent).
45
46
Indicators
Occupational safety
Index
The index in the table shows
the progress for occupational
accidents in relation to hours
worked (per million hours
worked):
99 percent of Henkel employees were covered. The base
for the index is the year 2010
(= 100 percent).
Occupational accidents per million hours worked
Serious occupational accidents
At least one day lost

(excluding commuting accidents)
More than
50 days lost
Henkel employees
Employees of
external companies
who work at Henkel
sites and are
directly contracted
2010
2011
2012
2013
2014
1.2
1.1
1.0
0.71
0.9
1.0
Index: Change
from 2010 to 2014
1.1
0.8
0.8
0.5
Henkel employees
25%
Employees of
external companies
20%
2010
2011
2012
2013
2014
Accidents during
typical production
activities
14
11
12
Accidents while
walking or moving
around (e.g.,
stumbling)
1 The data for 2013 was corrected due to delayed reporting of

two accidents.
Employee indicators
Employees (as of December 31)

2010
Henkel worldwide1
2011
Age and seniority (as of December 31)

2012
2013
2014
47,850 47,250 46,600 46,850 49,750
Structure of
workforce
2010
2011
2012
2013
2014
Average seniority
in years
10.3
10.2
10.4
10.3
10.2
Average age of
employees
39.4
39.4
39.6
39.6
39.7
Non-managerial
employees
79.8%
79.9%
79.4%
78.7%
79.0%
Age structure
Managers
18.6%
18.6 %
19.0 %
19.8%
19.5%
1629
18.1%
18.3%
17.6%
17.8%
18.4%
1.6%
1.5%
1.6%
1.5%
1.5%
3039
34.4%
34.6%
34.5%
34.4%
33.8%
4049
29.7%
29.4%
29.6%
29.1%
28.2%
5065
17.7%
17.7%
18.3%
18.7%
19.5%
Top managers2
Employee fluctuation worldwide3
4.6%
5.6%
5.8%
4.4%
4.3%
1 Permanent staff excluding trainees, figures have been rounded.

2 Corporate Senior Vice Presidents, Management Circles I and IIa.
3 Based on employee resignations.
At 49,750, the 2014 headcount was 6.2 percent above the
prior-year level. The increase was mainly due to acquisitions
in2014.
Percentage of women (as of December 31)
Nationalities (as of December 31)
Henkel
Managers
At headquarters
in Dsseldorf
2010
2011
2012
2013
2014
119
125
123
123
124
82
91
85
88
93
50
53
The average age of our employees has remained constant

over the years. This ensures, in accordance with our diversity
strategy, that Henkels workforce is agood mix of experienced
older employees and younger employees whose development
we can foster.
55
56
62
The internationality of our workforce reflects our business p

olicy
of filling local positions with local employees, and ensuring that
we have international teams at our c orporate headquarters in
Germany.
2010
2011
2012
2013
2014
Henkel
32.1%
32.5%
32.6%
32.9%
33.2%
Managers
28.7%
29.5%
30.5%
31.6%
32.5%
Top managers1
17.0%
18.6%
18.6%
19.8%
20.6%
1 Corporate Senior Vice Presidents, Management Circles I and IIa.

Compared with international levels, the total percentage of
female employees is good. This applies to managerial staff as
well. It is a result of our consistently applied diversity strategy.
Indicators
Part-time employees (as of December 31)
Personnel development (as of December 31)
2011
2012
2013
2014
Part-time contracts, global
3%
3%
3%
3%
Western Europe
(including Germany)
Internal promotion
(managers)
8%
8%
8%
8%
10%
10%
10%
11%
International
job rotations
Trainees (Germany)
Average number of
training days
Germany
Part-time work models are of relevance mainly in Western

Europe and especially in Germany. In emerging markets, such as
Asia, Eastern Europe, the Middle East, and Latin America, there
is significantly less demand for part-time work models.
2010
2011
2012
2013
2014
1,337
1,387
1,101
1,199
1,154
470
475
503
581
666
487
483
489
487
484
1.51
1 Within its comprehensive training concept, Henkel is increasing

its focus on day-to-day learning, job rotations as well as on its
online learning platform.
Employees covered by collective agreements
Employee share program
(as of December 31)
(as of December 31)

2010
Percentage
worldwide
2011
44%
Percentage in
the European
Union (EU)
79%
44%
79%
2012
44%
79%
2013
44%
79%
2014
44%
79%
An intensive formal and informal dialog with employee representatives has a long tradition at Henkel, even in countries
where employee representation has not been established.
Social engagement
2010
Number
of people
supported
Time off from
work for
employee-
initiated proj
ects (days)
Donations
inthousand
euros
(financial
and product
donations,
not counting
time off)
2,493
2011
2,343
2012
2,339
2013
6,087
2011
2012
2013
2014
29.3%
31.3%
28.4%
31.9%
30.1%
Around 11,500 employees in 54 countries purchased Henkel

preferred shares under this program in 2014. At year-end, some
14,500 employees held a total of close to 3million shares, representing approximately 1.6percent of total preferred shares.
The lock-up period for newly acquired ESP shares isthree years.
2,422
2014
2,265
730,000 753,629 1,046,321 1,147,483 1,358,108
54
2010
Social indicators
Percentage of projects supported per

Millennium Development Goal (as of December 31)
(as of December 31)
Total number
of projects
supported
Percentage of
employees owning
Henkel shares
135
6,002
131
7,302
51
7,937
284
8,238
The number of projects supported lies slightly below the prior-

year level. A more focused selection of projects resulted in an
increase in the number of people supported. Employee projects
required significantly more days off from work in 2014 than the
prioryear. This is due to the exceptional engagement of employees
in team-volunteering projects. Generally speaking, employees
mayrequest up to five days off from work per year for volunteer
activities. Total donations were slightly up versus the prior year.
2010
2011
2012
2013
2014
1. Eradicate
extreme poverty
and hunger
33%
30%
11%
13%
12%
2. A
chieve universal
primary education for girls and
boys alike
47%
23%
39%
39%
42%
3. P
romote gender
equality and
empower women
2%
2%
5%
4%
5%
4. R
educe child
mortality
3%
14%
8%
8%
7%
5. Improve
maternal health
1%
1%
3%
3%
3%
6. C
ombat HIV/
AIDS, malaria and
other diseases
7%
20%
3%
3%
3%
7. Ensure
environmental
sustainability
6%
9%
15%
15%
15%
8. D
evelop a global
partnership for
development
1%
1%
16%
15%
13%
By joining the Global Compact of the United Nations in 2003,

Henkel made a commitment to help achieve the Millennium
Development Goals. Through its social engagement, Henkel
contributes directly to the attainment of these goals. Henkel
does not influence the type of projects proposed under the
employee engagement program. Nevertheless, the majority of
these projects do indeed contribute to achieving these goals.
www.un.org/millenniumgoals
47
48
Our Sustainability Report/Our communication portfolio
Our Sustainability Report

Our Sustainability Report summarizes the key
environmental and social developments in fiscal
2014. The contents of the Report reflect the Henkel-
relevant and material aspects of sustainable
development.
Together with the web-based Sustainability Report
and the Annual Report, the print version makes up
an integrated corporate reporting concept. Since
we joined the United Nations Global Compact in
2003, our Sustainability Report has also served as
the basis for the required annual progress report.
Some of the references to online content are

provided with a code number, as shown here:
To find this content, visit the page www.henkel.com/

sr2014. In the Service column at the right you
will find the codesearch function. Simply enter
the appropriate code there and you will be taken
directly to the information you are looking for.
In the Online Sustainability Report, you will also
find a detailed index with links to the guidelines
of the Global Reporting Initiative (GRI):
In many places in this 2014 report, you will find

references to further information in the Sustain
ability Report itself, the Annual Report, as well as
the web-based Sustainability Report.
Our communication portfolio

We continuously seek and maintain a dialog
with all relevant stakeholders, using a variety of
communication channels to do so.
Our communication portfolio comprises not only
the print version of the Sustainability Report and
the Annual Report, but also the respective online
versions, which can be accessed on the internet
using a tablet or smartphone. These versions are
included in the Henkel app.
Henkel
www.henkel.com/sustainabilityreport
On the internet, Henkels corporate website at

www.henkel.com contains a dedicated section on
sustainability providing current news as well as
general background information.
Regarding social networks, we use channels such
as Facebook and Twitter to post information on
our sustainability activities. In 2014, we introduced
a playlist all about sustainability topics on our
YouTube channel.
The Henkel app is available
for both iOS and Android:
Henkel
www.henkel.com/annualreport
Henkel in social media:
www.henkel.com/sustainabilityreport
www.henkel.com/annualreport
Online Sustainability Report
Online Annual Report
www.facebook.com/henkel
www.twitter.com/henkel
www.youtube.com/henkel
Henkel app iOS
Henkel app Android
Contacts and further publications

Contacts
We welcome any questions, suggestions or
comments you may have regarding our
Sustainability Report, our online reporting,
or our sustainability orientation.
Corporate Communications
Phone: +49(0)211-797-3533
Fax: +49(0)211-798-4040
E-mail: [email protected]
Sustainability Management
Phone: +49(0)211-797-3680
Fax: +49(0)211-798-9393
Further publications available as downloads

on the internet
Our website offers access to all of the Environment Reports
and Sustainability Reports we have published since 1992, which
are also available as downloads. There you will also find our
Annual Reports, Quarterly Reports, VisionandValues, Code
ofConduct, Code of Corporate Sustainability, Leadership
Principles, SHE Standards, Public Affairs Standard, Social
Standards and our Corporate Citizenship Magazine Together.
www.henkel.com/publications
Investor Relations
Phone: +49(0)211-797-1631
Fax: +49(0)211-798-2863
Credits
Published by
Henkel AG&Co. KGaA
40191 Dsseldorf, Germany
2015 Henkel AG&Co. KGaA
Editorial work and coordination
Corporate Communications:
Uwe Bergmann, Yvonne Gottschlich, Ulla Hppe, Mareike Klein,
Brandi Schuster, Matt Shoesmith, Kyle Whitaker, Wolfgang Zengerling
Photos
Miriam Binner, Andrea Campagnolo, Guido Daniele, Tobias Ebert,
Owen Gao, Steffen Hauser, Philipp Hympendahl, Claudia Kempf,
Nils Hendrik Mller, Sami Rahim, Wojciech Wjtowicz; Henkel
Pre-print proofing
Thomas Krause, Krefeld
Printing
Druckpartner, Essen
Design and typesetting

mpm Corporate Communication Solutions, Mainz
Publication date of this report:

March 4, 2015
Translation
ExperTeam, Neuss: Alice Milne
PR no.: 03 15 7,000 ISBN: 978-3-941517-61-5
The Sustainability Report is printed on Galaxi Keramik FSC. The paper is made from
pulp bleached without chlorine. It has been certified and verified in accordance with
the rules of the Forest Stewardship Council (FSC). The printing inks contain no heavy
metals. This publication was cover-finished and bound with these Henkel products:
Cellophaning with Aquence GA 6085 HGL laminating adhesive, bound using Technomelt PUR 3400 ME COOL and Technomelt GA 3960 Ultra for the highest occupational health and safety standards.
This document contains forward-looking statements which are based on the current
estimates and assumptions made by the executive management of Henkel AG &Co.
KGaA. Forward-looking statements are characterized by the use of words such as
expect, intend, plan, predict, assume, believe, estimate, anticipate and similar formulations. Such statements are not to be understood as in any way guaranteeing that those
expectations will turn out to be accurate. Future performance and the results actually
achieved by Henkel AG &Co.KGaA and its affiliated companies depend on a number of
risks and uncertainties, and may therefore differ materially from the forward-looking
statements. Many of these factors are outside Henkels control and cannot be accurately estimated in advance, such as the future economic environment and the actions
of competitors and others involved in the marketplace. Henkel neither plans nor
undertakes to update any forward-looking statements.
Except as otherwise noted, all marks used in this publication are trademarks and/or
registered trademarks of the Henkel Group in Germany and elsewhere.
Henkel AG & Co. KGaA

40191 Dsseldorf, Germany
Phone: +49(0)211-797-0
www.henkel.com

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What is Henkel's sustainability strategy and goals?

What is Henkel's sustainability strategy and goals?

What are Henkel's focal areas for sustainability?

What are Henkel's focal areas for sustainability?

Sustainability Report 2014

Our sustainability strategy at a glance

We are committed to leadership in sustainability.

more net sales per

More value for our customers

Safer workplaces and

less water per

safer per million

less waste per

Henkel Sustainability Report 2014

We are committed to leadership in sustainability.

Many of our employees gain valuable insights

How Henkel continues to work

Henkel at a glance 2014

years of brand and

social projects supported

Henkel around the world: regional centers

Mexico City, Mexico

Henkel operates worldwide with leading brands and technologies in three

local employer, purchaser and investor. More information on our business

Sales in million euros

Production output in thousand metric tons

Adjusted1 earnings per preferred share (EPS) in euros

Carbon dioxide emissions in thousand metric tons

Dividend per ordinary share in euros

Water consumption in thousand cubic meters

Dividend per preferred share in euros

Waste for recycling and disposal in thousand

1Adjusted for one-time charges/gains and restructuring charges.

Employees1 (as of December 31)

Participation in employee share program in percent

Occupational accidents per million hours worked

Average number of training days per employee

Donations in million euros (financial and product

1 Permanent staff excluding trainees. Figures have been rounded.

Value added statement 2014

Sustainability strategy and management

Henkel Sustainability Report 2014

Achieving more with less

Commitment to leadership in sustainability is

Our strategy is based on the Vision 2050 of the

Increasing business relevance

With a clear strategy and engaged employees,

Focal areas and strategic principles

Henkel Sustainability Report 2014

Sustainability strategy and management

Our ambitious goal for 2030

Interim targets on the road to Factor 3

use, 18 percent in waste volume (22 percent

Our management and reporting systems

Six focal areas summarize the

Sustainability strategy and management

Henkel Sustainability Report 2014

measures into concrete interim targets to be achieved in our focal

Materials and Waste

Stronger focus needed

1Adjusted for one-time charges/gains and restructuring charges.

42% Supply chain, production,

The initiative Together for Sustainability