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Corporate Reporting 2014

Henkel Corporate Reporting 2014

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Sustainability Report 2014
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.

Put into practice: Together for a sustainable value chain

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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.

In October 2014, the initiative “Together for Sustainability” held its first supplier conference in Shanghai.

In 2011, Henkel and five other companies in the chemical industry established an initiative entitled “Together for Sustainability – The Chemical Initiative for Sustainable Supply Chains” (TfS). The Initiative’s aim is to harmonize the increasingly complex supply chain management processes and to optimize the dialog among worldwide business partners.

In 2014, the Initiative turned its focus on emerging markets, particularly those in Asia. A first suppliers meeting took place in Shanghai in October with an attendance of more than 400.

At the event, Chinese suppliers were informed about the Initiative with the aim of establishing a common understanding regarding the challenges that exist in chemical industry supply chains. The intention is to actively involve suppliers in sustainability assessment processes and audits. At the heart of the Initiative is the idea “An audit for one is an audit for all.” In the future, suppliers will only have to undergo one assessment or one audit. An internet platform is then used to make the results available to all members of the Initiative for information and approval. By the end of 2014, the number of members in the Initiative had doubled to 12.

1,100audits und assessments

were carried out under the “Together for Sustainability” Initiative at our suppliers in 2014. Henkel works regularly with independent experts here.

90%

of the suppliers who underwent a repeat audit had improved their sustainability performance.

91%

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.

During his keynote speech at the Together for Sustainability conference in Shanghai, Li Shousheng said it is important for Chinese companies to learn from their international counterparts in order to create a new era of sustainable development in China.
More than 400 participants joined the first Together for Sustainability conference in Shanghai – including suppliers, TfS member company representatives as well as local and international associations and non-governmental organizations.
Conference topics included sustainable supply chains and specific sustainability requirements in the chemical industry.
Founded in 2012, the goal of Together for Sustainability is the global standardization of supplier evaluations and auditing. This means developing and implementing a global supplier engagement program that assesses and improves sustainability sourcing practices.
In this video, Chief Procurement Officers from Together for Sustainability member companies explain how the initative helps their companies improve sustainability standards across all supply chains.

During his keynote speech at the Together for Sustainability conference in Shanghai, Li Shousheng said it is important for Chinese companies to learn from their international counterparts in order to create a new era of sustainable development in China. Shousheng is the Executive Vice Chairman of the China Petroleum and Chemical Industry Federation (CPCIF).

More than 400 participants joined the first Together for Sustainability conference in Shanghai – including suppliers, TfS member company representatives as well as local and international associations and non-governmental organizations.

Conference topics included sustainable supply chains and specific sustainability requirements in the chemical industry. Participants were also provided with an overview on the key audit results achieved so far and an update on the improvement process at the supplier level.

Founded in 2012, the goal of Together for Sustainability is the global standardization of supplier evaluations and auditing. This means developing and implementing a global supplier engagement program that assesses and improves sustainability sourcing practices.

In this video, Chief Procurement Officers from Together for Sustainability member companies explain how the initative helps their companies improve sustainability standards across all supply chains.

Carsten Knobel, Executive Vice President Finance

The initiative ‘Together for Sustainability’ is becoming a benchmark for systematic and efficient supplier assessment.

Carsten Knobel Executive Vice President Finance (CFO)/Purchasing/Integrated Business Solutions

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 currently has suppliers and other business partners from around 130 countries. More than 70 percent 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 well as key commercial and operating indicators.