Henkel

Duesseldorf, Germany
Invested through / Financed by
  • Triodos Global Equities Impact Fund
  • Triodos Sterling Bond Impact Fund
Asset classListed equity & Corporate bonds
Impact strategyImpact Equities and Bonds
SectorOther
ISIN codeXS2057835717
Industry groupHousehold & Personal Products
Sustainable Development Goals (SDGs)
  • Good health and well-being

German company Henkel manufactures industrial, commercial, and consumer chemical products. The company operates in three main business units: Adhesive Technologies (45% of sales), Laundry and Home Care (35% of sales) and Beauty Care (19% of sales). Founded in 1876 by Fritz Henkel, the company today operates in over 120 countries and employs about 53,000 worldwide. Western Europe (30% of sales) is the largest regional market, followed by North America (27% of sales). Emerging markets account for 40% of Henkel's revenues.

Investment rationale

With its Beauty Care business, Henkel focuses on personal hygiene. Through this segment, it is active in hair cosmetics, body care, skincare and oral care, with Schwarzkopf and Dial as the top brands. The Laundry & Home Care segment is especially vital for a hygienic environment, as it includes detergents, dish-washing products, toilet cleaners and air fresheners. Their top brands here are Persil, All, and Bref.

Henkel is also involved in Innovation for Sustainability especially through its Adhesive Technologies segment which has a strong focus on innovations and technologies. Through its Adhesive Technologies segment, the company develops solutions that help increase energy efficiency, improve workplace safety, and reduce waste and emissions. For example, the electron-conductive adhesives enable manufacturers of photovoltaic modules to increase the efficiency of solar panels.
Henkel’s industrial coating products protect machinery like pumps against wear and tear and help extend their lifetime. Their adhesives also open the opportunity to use wooden panels instead of concrete, which uses more energy and emits more CO2. The company has also developed a technology that allows replacing polyethylene with paper for use in food and non-food packaging.

Alignment with Triodos Transitions: In total 42% of the revenues of the company is aligned with one or more Triodos Transitions. 34% of revenues is aligned with the Wellbeing Transition and 8% of revenues is aligned with the Resource Transition.

The contribution to the Wellbeing Transition comes from 32% of revenues related to the impact objective Healthy Lifestyle, and 3% of revenues related to the impact objective Safety & Security. The contribution to the Resource Transition comes from 7% of revenues related to the impact objective Circular Economy, and 0% of revenues related to Sustainable Water & Wastewater Management.