Company-wide steering instruments and regional action programs

In pursuing our strategy of "achieving more with less," our business sectors set up their own optimization programs that increase productivity, quality and safety, while simultaneously reducing resource consumption, waste, and maintenance costs. These are based on comprehensive analyses and simulations. The diversity of our products makes varying demands on our production processes. This is because the various production processes involved in making products such as household cleaners, skin creams or tiling adhesives differ widely in terms of their water and energy consumption and suggest fundamentally different approaches for improvements. The experience and activities of our individual plants are therefore channeled into the company-wide efficiency programs. In fact, process-specific ideas and the creativity of employees often make major contributions to the achievement of our objectives.

The Laundry & Home Care business sector, for example, set itself the goal of introducing sustainability scorecards at all of its 29 production sites by the middle of 2012. These scorecards define and measure how resource consumption can be reduced still further in production. The measures defined may focus on different areas, such as reducing water consumption or the waste footprint, depending on the region, the product mix, and the infrastructure.

One overarching topic for all sites in the Laundry & Home Care business sector is energy efficiency. Here we are working to develop energy concepts that will make it possible to take a global approach. The core aim is to replace existing processes by alternative ones that consume less energy. Current examples include projects to minimize tower powders – one of the most energy-intensive process steps in the production of powder detergents. Regarding the use of renewable energies, our activities target three different areas in order to ensure the efficient supply of energy: solar energy, energy from biogas, and combined heat and power generation in our own plants.

At our eight Cosmetics sites, we successfully carried forward our Total Productive Management Plus optimization program in 2011. This program, which has already been in place for five years, is designed to identify losses in the various production processes and the supply chain, so that we can continuously increase added value. The principle of involving all employees, encouraging them to keep challenging what they have already achieved, constantly think outside the box, and work on new solutions, has contributed significantly to the success of the program. To allow us to judge how our improved performance compares with that of our competitors and with our own best-practice goal, our Cosmetics factory in Wassertrüdingen took part in an external competition in 2011. Among the approximately 90 European production sites from different industries participating in this contest, the Henkel Cosmetics factory was declared the "Factory of the Year" in the category "Excellent Resource Efficiency." This recognition shows how successful our program is, not least with respect to the competitiveness of our sites.

Regarding the production of our Adhesives, Sealants and Surface Treatments, we continued to consolidate our worldwide production network in 2011 and have reduced the number of sites by six to 143. Key aspects of our production planning are production in the geographical vicinity of our customers, as well as economies of scale and the resulting optimized utilization of resources.

Worldwide: Selected examples of contributions to resource efficiency in 2011

Worldwide

Bogotá, Colombia and Binh Duong, Vietnam
Under the Total Productive Management Plus program, all of our Cosmetics plants implemented numerous further optimization measures in 2011. Two sites were especially successful here: The plant in Colombia was able to lower its energy and water consumption by 29 percent and 15 percent, respectively. In the factory in Vietnam, the measures resulted in a reduction of 18 percent in energy consumption, 14 percent in water consumption, and 33 percent in the waste footprint.

Shanghai and Yantai (China), Chennai (India), Kruševac (Serbia), Ciechanów (Poland), Ebensee (Austria), Mezzago (Italy), Monterrey (Mexico), and Oak Creek (Wisconsin, USA)
Targeted analysis and elimination of non-process-relevant water losses. This resulted in an overall reduction of over 60 percent in the water consumption of the various sites.

Shanghai, China, and Scottsdale, Arizona, USA
The energy efficiency of our administration buildings is also increasingly a focus of our efforts. For new buildings we use energy-efficient construction methods, such as in our new Henkel regional centers in Shanghai, China, and Scottsdale, Arizona, in the USA. The building of the Henkel headquarters in Shanghai, China, for example, is highly energy-efficient. Glass curtain walls and heat recovery circuits for the heating and air conditioning system save energy. The building thus consumes 60 percent less energy than comparable structures. Furthermore, we conduct energy-saving campaigns and hold "environment days" to inspire all employees in management, administration and research to save energy at their own workplaces.

Worldwide
Efficiency drive: Excellence in Site Services (EISS) is one of our worldwide efficiency programs. Since 2006, it has helped us to increase the productivity, quality and safety of our sites, while simultaneously reducing resource consumption, waste, and maintenance costs. Within the scope of EISS, we identify many individual measures each year at our sites around the world in the fields of, for example, energy, water, waste, building management, safety, health and the environment, and plant logistics. Regular workshops and intensive communication ensure that best practice examples, and hence knowledge and experience, are shared internationally throughout the organization.

Europe, Africa, Middle East

Vienna, Austria
The laundry detergents site is making increasing use of cogenerated heat and power to boost its efficiency. With a combined heat and power unit and a steam boiler, the site is able to cover one-third of its annual electricity needs. Catalytic converters installed downstream also reduce emissions to a minimum.

Ratibor, Poland
By making better use of resources, improving powder detergent formulations, optimizing energy utilization when drying the powder products, and recovering waste heat, the site has succeeded in reducing the energy consumption per production unit by 23 percent over the past five years. In December 2011, the excellent work of our employees was confirmed by external auditors in line with the new energy management standard ISO 50001. The Ratibor plant is the first Henkel production site worldwide to obtain certification to this standard.

Seville and Montornès, Spain
Pilot projects: In Spain, we have installed small-scale solar thermal systems at our sites in Seville and in Montornès. These systems use the heat from solar radiation to provide hot water for the sites.

Aïn Témouchent, Algeria
Process improvements and quality enhancing measures led to a significant decrease in rejects, faulty batches, and complaints. As a result, the waste footprint at the site was reduced 14 percent.

Nairobi, Kenya
Comprehensive optimization measures to achieve reductions in the amount of water used by the production facilities and the wastewater they generate. Result: Water consumption and the associated wastewater were reduced by 17 percent overall.

Europe
Emissions trading: Since January 2005, some 12,000 industrial installations in the European Union have been participating in the world's largest emissions allowances trading scheme. The objective is to achieve a reduction of 8 percent in carbon dioxide emissions in Europe (base level: 1990) by the year 2012. Henkel's power plant in Düsseldorf-Holthausen, the company's largest source of direct carbon dioxide emissions, is subject to the emissions trading scheme. The power plant is technically very well equipped. Its efficiency is almost 90 percent, thanks to the especially effective use of cogeneration. As early as 1990, the construction of a gas turbine brought about a reduction of approximately 25 percent in carbon dioxide emissions. With the help of further improvements in energy management and a tripling of the carbon dioxide neutral fuels from production residues, emissions per kilowatt hour of electricity and steam have been reduced by an additional 20 percent since 1990.

Europe
Sale instead of disposal: Marketing of all left-over stocks, including raw materials, intermediate products and equipment, via a virtual surplus goods marketplace, where they are sold to interested external parties. Result: significant contribution to avoiding waste and conserving resources by returning surplus materials to the recoverable materials cycle. In addition: considerable savings in disposal and warehousing costs. The money earned covers part of the production and purchase costs of these left-over stocks.

North and South America

St. Louis, Missouri, USA
Switch of laundry detergent production to concentrates. Result: reduction of 33 percent in water consumption and 29 percent in waste at the site.

Hayward, California, USA
Detailed screening of the plant's operations for potential improvements. Result: changes in production planning and cleaning processes helped to cut wastewater volume by more than 15 percent and gas and electricity consumption by almost 40 percent.

Mixco, Guatemala
Investment in a new heat recovery system for the detergent production line to recycle waste heat from production to our processes. Result: reduction in energy consumption by about 15 percent by recovering the 100 degree Celsius waste heat from the spray drying tower and using it for our production processes.

Sabana Grande, Puerto Rico
Implementation of various pilot projects to increase energy efficiency. These include the installation of solar tube systems that reflect sunlight from the roof into building interiors. Result: Reduction of 60 percent in the energy consumption of the test building.

Bogotá, Colombia
Under the Total Productive Management Plus program, all of our Cosmetics plants implemented numerous further optimization measures in 2011. Various sites were especially successful here: The plant in Colombia was able to lower its energy and water consumption by 29 percent and 15 percent, respectively.

Itapevi, Brazil
Continuous projects to raise awareness among employees, their families as well as local communities with regard to environmental protection, health, and accident prevention. These may also include some unconventional methods. In Itapevi, the annual fashion show "From trash to luxury", for example, makes use of creative works of art to show what is disposed of each day and make people aware of recoverable materials.

Asia-Pacific

Binh Duong, Vietnam
Under the Total Productive Management Plus program, all of our Cosmetics plants implemented numerous further optimization measures in 2011. Various sites were especially successful here: In the factory in Vietnam, the measures resulted in a reduction of 18 percent in energy consumption, 14 percent in water consumption, and 33 percent in the waste footprint.

Bien Hoa City, Vietnam
Energy consumption at the site has been cut by 19 percent – mainly due to the installation of a transparent roof for the production shop, thus making it possible to use natural daylight.

Shah Alam, Malaysia
Process improvements and quality enhancing measures led to a significant decrease in rejects, faulty batches, and complaints. As a result, the waste footprint of the site was reduced by 24 percent.

Sitarganj, India
Increased efficiency and an optimized process flow allowed the reuse of water in production. As a result, water consumption at the site was reduced by 30 percent.

Shantou, China
Energy savings through using process heat for the generation of warm water for production. This reduced energy consumption at the site by 2 percent.

Humen, China
Process optimizations and shortening of lead times in production reduced energy consumption at the site by 4 percent.

New Lynn, New Zealand
Optimized use and recycling of packaging materials reduced the waste footprint at the site by 2 percent.

Auckland, New Zealand
The installation of a closed-loop system for chilled water reduced the annual water consumption in adhesives production by about 60 percent. At the same time, the new process brought about significant financial savings in the form of reduced costs for water intake and disposal.

“Plants and sites that have a clear attitude toward being sustainable tend to perform better – and more sustainably.”

Yulanda Sun
Responsible in the Asia-Pacific region for safety, health, environment and quality (SHEQ) in the Adhesive Technologies business sector.

Last updated: March 8, 2012