STRATEGIC FRAMEWORK

Rigorously shape a winning portfolio

A successful portfolio is the key to sustainably profitable business performance. This is why we are consistently evolving our portfolio of brands and businesses as part of our active portfolio management – not least in light of the announced and since completed implementation of the portfolio measures in our integrated business unit Consumer Brands. At the same time, M&A activities in both business units remain an integral part of our strategy, supported by our strong balance sheet.

Accelerate impactful innovations

We want to accelerate impactful innovations and also adopt an enhanced innovation approach, for example by utilizing digital applications and data to gain faster and better insights into consumer behavior and market trends. Decision-making across the organization occurs close to the market. In our collaboration with external partners, we are also increasingly leveraging the potential of open innovation, using agile methods and continuing to invest in innovation centers. We consistently invest into innovations and brands in core categories and regions. 

Boost sustainability as a true competitive differentiator

We want to boost sustainability as a true competitive differentiator. Sustainability is essential to create a competitive edge, enable business growth and generate value for our customers, consumers and all of our stakeholders.

To drive sustainable development, we have set ourselves ambitious goals as part of our 2030+ Sustainability Ambition Framework that build on our progress to date and which we are rigorously pursuing. We have included different ESG dimensions and defined key areas of focus: 

• Regenerative Planet: We strive to achieve a circular economy, a climate-neutral future and the regeneration of nature. To this end, we are further developing our business activities to drive solutions in the areas of climate, circularity and nature.
• Thriving Communities: We actively contribute to people being able to lead a better life through our business and brands. To this end, we focus on equity, education and wellbeing.
• Trusted Partner: We are committed to product quality and safety while ensuring business success with integrity, focusing on performance, transparency and collaboration.

We will build on our particular strengths, such as the innovation capabilities of our business units and the comprehensive knowledge of our employees, as well as various contact points of our products and customers and consumers. Assessments in the relevant sustainability ratings provide important and impartial confirmation and acknowledgment of our achievements and progress.

Enhance value creation for customers and consumers through digitalization

We take advantage of the opportunities offered by digitalization to increase the value added for our customers and consumers, interacting directly with our consumers and striving to grow our digital sales. In the process, we are building a pool of digitalization talent backed by targeted support. Ultimately, we want to strengthen our digital business focus and increase efficiency. In this respect, our digital unit Henkel dx, which was created in 2019 to bring together the digital and IT teams at Henkel, is of key importance.

Continuously optimize operating models

We are striving to continuously optimize our operating models and, in doing so, to steadily improve the competitiveness of our processes and structures. We want to step up customer and consumer proximity, establish faster decision-making processes and realize further efficiency gains.

Strengthen our collaborative culture

A strong corporate culture, shared values and a clear understanding of collaboration as a strong team are essential to continue to successfully drive our growth agenda. Important cornerstones of this are our purpose – Pioneers at heart for the good of generations – and our Leadership Commitments uniting all employees worldwide. We believe that cultural transformation is an ongoing process in which we focus on collaboration and empowerment, foster the upskilling of our employees for future capabilities and enable them to constantly develop further.