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The Clorox Company Anticipates Cost Savings from Sustainable Packaging Plan

Clorox Anticipates Cost Savings from Sustainable Packaging Plan
(Image Credit: The Clorox Company)

The Clorox Company plans to produce cost savings with new sustainable packaging targets introduced this week.

On Wednesday the company detailed an overarching business strategy that incorporates several ESG goals. By 2025, the consumer goods manufacturer seeks to make all its packaging 100% recyclable, reusable or compostable. And by 2030, they aim to reduce virgin plastic and fiber in packaging by 50%.

The company has net sales of $6.2 billion and owns brands such as Glad, Kingsford, Pine-Sol, 409, Scoop Away, Brita, Fresh Step, Burt’s Bees, Hidden Valley Ranch, Liquid Plumr, and Clorox.

“Sustainability unlocks cost savings,” their presentation said. One example: switching from a cardboard carton to a paper wrap for Glad bags to reduce waste. “[The] opportunity is big — 300 million pounds of recycled and renewable fiber-based packaging,” according to the manufacturer.

In addition to rethinking packaging, Clorox’s executives say they want to reduce or eliminate water in products. Compacting bleach would cut their use of water by 33%, corrugate by 25%, and plastic by 15%, the company said.

Clorox’s presentation indicated that a new supply chain for Fresh Step and Scoop Away litter reducing transportation should eliminate around 7 million over-the-road miles, 1 million gallons of diesel fuel, and 23,000 metric tons of carbon dioxide equivalent.

The company’s business strategy includes compensation awards for the Clorox executive committee, including its chair and CEO, that are tied to elements of the ESG goals.

Laura Stein, executive vice president, general counsel and corporate affairs, said that a broad spectrum of stakeholders increasingly expects companies to lead in driving positive environmental, social, and ethical change while also delivering value.

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