Why Henkel’s Sustainability Leadership Earns Praise—and Positions It as a Smart Investment

Henkel AG & Co. KGaA, the global consumer goods and adhesive technologies giant, recently took home Schneider Electric’s Sustainability Impact Award for 2025, a recognition that underscores its pioneering role in decarbonization and circular economy initiatives. This award, which highlights companies driving measurable progress toward net-zero goals, positions Henkel as a leader in sustainability—a trait increasingly critical for long-term investment viability.

The Foundation of Henkel’s Success: Emissions Reduction and Innovation

At the core of Henkel’s achievement is its 64% reduction in CO₂ emissions per ton of product since 2017 and a 61% cut in Scope 1 and 2 emissions (direct and purchased energy emissions) since 2010. These metrics are no accident. The company has aggressively adopted renewable energy, electrified operations, and integrated biofuels. For instance, Virtual Power Purchase Agreements (VPPAs) and Schneider’s AVEVA energy management platform enable real-time optimization of energy use, reducing waste and costs.

But Henkel’s ambition extends far beyond its own operations. Scope 3 emissions—those tied to raw materials, logistics, and end-of-life product management—account for the majority of its carbon footprint. To tackle this, Henkel’s Supplier GHG Engagement Program evaluates and incentivizes upstream partners to adopt decarbonization strategies. A standout example is its collaboration with suppliers Moeve and Unger, who developed renewable surfactants using the biomass balance approach, replacing fossil-based inputs in cleaning products.

The Power of Partnership: Schneider Electric’s Zero Carbon Project

Henkel’s collaboration with Schneider Electric’s Zero Carbon Project (ZCP) is central to its sustainability strategy. Launched in 2021, the ZCP aims to reduce Scope 1 and 2 emissions by 50% among Schneider’s top 1,000 suppliers (accounting for 70% of its emissions) by 2025. Henkel leverages Schneider’s tools, including the AVEVA platform and carbon quantification resources, to monitor and reduce emissions. The program also provides technical training and knowledge-sharing forums, fostering industry-wide decarbonization.

As Mourad Tamoud, Schneider’s Chief Supply Chain Officer, noted, Henkel’s role in advancing net-zero goals through teamwork exemplifies the collective action needed to meet global climate targets. This partnership isn’t just environmental—it’s economic. By reducing supply chain emissions, Henkel mitigates regulatory risks and taps into growing demand for sustainable products.

Future Commitments and Investment Implications

Henkel’s long-term vision is bold: climate-positive by 2030 and net-zero across its entire value chain by 2045. To achieve this, it aims to reduce Scope 3 emissions by 30% by 2030, a target supported by circular economy practices and supplier innovation. Meanwhile, its partnerships with firms like Takasago and Wacker are driving breakthroughs in sustainable materials, balancing performance with environmental stewardship.

Investors should note that sustainability leadership often correlates with financial resilience. Companies prioritizing ESG (Environmental, Social, Governance) metrics often outperform during market volatility, as seen in the +18% rise in Henkel’s stock price since 2020 amid global economic uncertainty. Moreover, Henkel’s focus on renewable energy and supplier collaboration aligns with global trends: 75% of consumers now prioritize brands with strong sustainability credentials, per Nielsen data.

Conclusion: A Recipe for Sustainable Growth

Henkel’s Sustainability Impact Award is more than a trophy—it’s a testament to its ability to align profitability with planetary health. By reducing emissions across all scopes, fostering supplier innovation, and partnering with industry leaders like Schneider Electric, Henkel is setting benchmarks for a low-carbon future.

With a 64% CO₂ reduction per ton of product, 30% Scope 3 reduction targets by 2030, and a stock price reflecting investor confidence, Henkel exemplifies how sustainability isn’t a cost but a competitive advantage. For investors seeking companies that thrive in an ESG-driven economy, Henkel’s blend of ambition, innovation, and collaboration makes it a compelling choice—one poised to lead in both market value and environmental stewardship.