Clorox Sets 2030 Science-Based Targets for Reducing Greenhouse Gases and Commits to Achieving Net Zero Emissions by 2050

Rhea-AI Summary

The Clorox Company (NYSE:CLX) announced ambitious science-based targets (SBTs) to achieve net zero emissions by 2050, aligning with the Paris Agreement. The company aims for a 50% reduction in carbon emissions for Scopes 1 and 2 by 2030 and a 25% reduction in Scope 3 emissions against a 2020 baseline. These goals support Clorox's IGNITE strategy, which focuses on health, environmental sustainability, and community investment. Clorox has committed to using 100% renewable electricity in U.S. and Canada operations and reducing its packaging carbon footprint.

Positive

• Aiming for net zero emissions by 2050 across Scopes 1, 2, and 3.
• Targeting a 50% reduction in emissions by 2030 for Scopes 1 and 2.
• Commitment to reduce Scope 3 emissions by 25% from a 2020 baseline.
• Use of 100% renewable electricity for U.S. and Canada operations since January 2021.
• Targets align with the Paris Agreement and Science Based Targets initiative.

Negative

• None.

OAKLAND, Calif., Sept. 7, 2021 /PRNewswire/ -- The Clorox Company (NYSE:CLX) announced today new science-based targets (SBTs) as part of its climate strategy, which will put the company on a path to net zero emissions across Scopes 1, 2 and 3 by 2050. By 2030, Clorox aims to reduce carbon emissions across its operations (Scopes 1 and 2) by 50 percent and pledges to reduce its value chain emissions (Scope 3) from its purchased goods and services and use of sold products by 25 percent, all on an absolute basis against a 2020 baseline.

Clorox's SBTs are in line with the Paris Agreement and have been approved by the Science Based Targets initiative, a partnership that defines and promotes best practice in science-based target setting and independently assesses companies' targets.

"As a health and wellness company at heart, we recognize that the long-term well-being of future generations depends on the health of our planet," said Linda Rendle, CEO of The Clorox Company. "Taking decisive climate action is essential to protecting our planet and communities and demonstrates our commitment to our purpose – to champion people to be well and thrive. We have strong aspirations for decarbonizing our business as we accelerate our growth agenda for long-term value creation for all stakeholders."

These new targets advance Clorox's IGNITE strategy, which was introduced in 2019 to drive growth and create value for both shareholders and society. IGNITE is grounded in strategic choices and environmental, social and governance (ESG) goals focused on Clorox's strategic pillars, where the company believes it can have the greatest impact:

• Healthy Lives: Improving people's health and well-being through initiatives such as promoting employee safety, advancing product stewardship and innovating wellness products
• Clean World: Fighting climate change and eliminating plastic & other waste
• Thriving Communities: Investing in employees and communities to contribute to a more equitable world

Clorox's approach to meeting its climate commitments include maintaining its use of 100% renewable electricity for U.S. and Canada operations – first achieved in January 2021 – to address Scopes 1 and 2 emissions. Clorox's Scopes 1 and 2 targets are consistent with reductions required to keep warming to 1.5 degrees Celsius, the most ambitious goal of the Paris Agreement.  

The majority of the company's carbon footprint comes from Scope 3 emissions, which the company expects to address by prioritizing emissions reductions. The company will incorporate climate considerations into purchased goods and services, reduce virgin material and increase the use of post-consumer recycled content in packaging and innovate to reduce the carbon footprint of products. Clorox's target for the emissions from its value chain (Scope 3) meet the SBTi's criteria for ambitious value chain goals, meaning they are in line with current best practice.

"We are proud to announce these ambitious new targets as part of our commitment to reducing Clorox's carbon footprint," said Ed Huber, Clorox's Chief Sustainability Officer. "When we first introduced our IGNITE strategy, we took the important step of embedding ESG goals into our choices to help ensure that our decision making, and growth plans are consistent with our low carbon vision. Today's commitments are important steps in our journey to delivering growth in a responsible and sustainable way."

The Clorox Company

The Clorox Company (NYSE: CLX) is a leading multinational manufacturer and marketer of consumer and professional products with about 9,000 employees worldwide and fiscal year 2021 sales of $7.3 billion. Clorox markets some of the most trusted and recognized consumer brand names, including its namesake bleach and cleaning products; Pine-Sol^® cleaners; Liquid-Plumr^® clog removers; Poett^® home care products; Fresh Step^® cat litter; Glad^® bags and wraps; Kingsford^® grilling products; Hidden Valley^® dressings and sauces; Brita^® water-filtration products; Burt's Bees^® natural personal care products; and RenewLife^®, Rainbow Light^®, Natural Vitality CALM™, and NeoCell^® vitamins, minerals and supplements. The company also markets industry-leading products and technologies for professional customers, including those sold under the CloroxPro™ and Clorox Healthcare^® brand names. More than 80% of the company's sales are generated from brands that hold the No. 1 or No. 2 market share positions in their categories.

Clorox is a signatory of the United Nations Global Compact and the Ellen MacArthur Foundation's New Plastics Economy Global Commitment. The company has been broadly recognized for its corporate responsibility efforts, included on the Barron's 2020 100 Most Sustainable Companies list, 2021 Bloomberg Gender-Equality Index, the Human Rights Campaign's 2021 Corporate Equality Index and the 2021 Parity.org Best Places for Women to Advance list, among others. In support of its communities, The Clorox Company and its foundations contributed about $20 million in combined cash grants, product donations and cause marketing in fiscal year 2021. For more information, visit TheCloroxCompany.com and follow the company on Twitter at @CloroxCo.

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SOURCE The Clorox Company

FAQ

What are Clorox's new science-based targets for emissions reduction?

Clorox aims for net zero emissions by 2050, with a 50% reduction in Scopes 1 and 2 by 2030 and a 25% reduction in Scope 3 emissions.

How does Clorox plan to achieve its climate goals?

Clorox will maintain 100% renewable electricity usage and focus on reducing emissions in its value chain, including packaging.

What is the significance of Clorox's targets?

These targets align with the Paris Agreement and demonstrate Clorox's commitment to sustainability and long-term value creation.

When did Clorox achieve 100% renewable electricity use in its U.S. operations?

Clorox achieved 100% renewable electricity use in its U.S. and Canada operations in January 2021.

What is the IGNITE strategy of Clorox?

The IGNITE strategy focuses on health, sustainability, and community investment to drive growth and create value for stakeholders.