exo-is/governance-reporting-on-listed-companies huggingface dataset:
Keyword: governance
and governance structure for implementing the PRB)? Please 
describe briefly.
Citi continues to engage with stakeholders to keep abreast of our areas of greatest negative and positive impacts. 
We continue to make and report on progress toward the stated targets, goals and commitments.
6.4 Challenges
Here is a short section to find out about challenges your bank is 
possibly facing regarding the implementation of the Principles for 
Responsible Banking. Your feedback will be helpful to contextualise 
the collective progress of PRB signatory banks. 
What challenges have you prioritized to address when implement­
ing the Principles for Responsible Banking? Please choose what you 
consider the top three challenges your bank has prioritized to address 
in th
Keyword: governance
governance  
  Gaining or maintaining 
momentum in the bank
  Getting started: where to start 
and what to focus on in the 
beginning
  Conducting an impact analysis
  Assessing negative environmen­
tal and social impacts  ­
  Choosing the right performance 
measurement methodology/ies
  Setting targets
  Other:…
  Customer engagement
  Stakeholder engagement
  Data availability
  Data quality
  Access to resources
  Reporting
  Assurance
  Prioritizing actions internally
Citi 2022 ESG Report
Page 122
ESG at Citi
Sustainable Finance
Climate Risk & Net Zero
Sustainable Operations
Building Equitable & Resilient Communities
Talent & DEI
Responsible Business
Appendices
The Principles for Responsible Banking Index
Sustainability Accounting Standard
Keyword: governance
•	5.1 Governance Structure for Implementation 
of the Principles 
These areas relate to the three key steps which 
the Principles require signatories to implement: 
Impact Analysis, Target Setting and Reporting.
Please note the following related to the scope of 
the limited assurance: 
•	KPMG, our assurance provider, has 
provided limited assurance only in relation 
to certain information in the PRB Template 
in accordance with attestation standards 
of the American Institute of Certified Public 
Accountants (AICPA). Their report appears 
on page 125. 
•	The documents or websites listed under the 
Links and References section corresponding 
to all responses as well as Citi’s responses 
to all Self-assessment Summary boxes are 
outside the scope of KPMG’s a
Keyword: governance
5.1 Governance Structure for Implementation 
of the Principles 
Our governance processes provide for oversight 
over the elements and initiatives that facilitate 
implementation of our key initiatives, targets, 
goals and commitments. Our governance 
structures are detailed in our 2022 ESG Report, 
which includes descriptions of oversight from 
the Board, Board committees and the Executive 
Management Team, as well as a detailed 
diagram of climate governance within the firm. 
As described before, target setting, imple­
mentation and monitoring of our initiatives are 
presented to the Board on at least an annual 
basis and to senior-level councils/steering 
groups on a periodic basis. Scorecard elements 
pertaining to ESG/Sustainability goals are 
prepar
Keyword: governance
parency into our environmental, social and governance (ESG) initiatives to respond to investor and 
other stakeholder requests, and to further enhance our collective understanding of ESG issues. Our 
approaches to the disclosures included in this report differ in significant ways from those included in 
mandatory regulatory reporting, including under U.S. Securities and Exchange Commission (SEC) rules 
and regulations. Thus, while certain matters discussed in this report may be significant, any significance 
should not be read as necessarily rising to the level of materiality used for the purposes of complying 
with the U.S. federal securities laws and regulations, even if we use the word “material” or “materiality” 
in this report.
Certain statements in this report are “forward-looking state
Keyword: tax
a percentage of pre-tax earnings and shareholder impact from a share price/market 
capitalization volatility standpoint and other qualitative definitions such as reputation/brand 
equity, customer and consumer impact. For each of these criteria, Clorox’s ERM program has 
established a 5 point scale from very low to very high and risks are evaluated across all the 
criteria/definitions. A substantive risk is one where the impact is medium to high across a 
number of criteria and has a high likelihood to disrupt our ability to operate our business. Clorox 
utilizes COSO’s three-lines of defense model whereby each of the three lines play a distinctive 
role within Clorox’s wider governance structure for effective risk management. Similar to the 
model, Clorox’s firs
Keyword: tax
such a percentage if pre-tax earnings and shareholder impact from a share price/market 
capitalization volatility standpoint and other qualitative definitions such as 
reputation/brand equity, customer and consumer impact. For each of these criteria, 
Clorox’s ERM program has established a 5 point scale from very low to very high and 
risks are evaluated across all the criteria/definitions. A substantive risk is one where the 
impact is medium to high across a number of criteria and has a high likelihood to disrupt 
Clorox Company CDP Climate Change Questionnaire 2021 Wednesday, July 28, 
2021 
 
13 
 
our ability to operate our business. For example, the ERM Steering Team identified 
Climate Risk as one of Clorox’s top enterprise risks because of the degree to which
Keyword: tax
regulations around greenhouse gas emissions or carbon tax initiatives 
that could impact plants with air permits. We monitor these regulations 
to ensure compliance and to evaluate any potential future risk. . 
The environmental audits conducted every two years are part of our 
overall risk management process for managing regulatory risks. The 
audit program uses third party software that monitors regulations for 
changes. That ensures that the operations are meeting the most 
current and up to date environmental regulatory requirements. 
Emerging 
regulation 
Relevant, 
always 
included 
Clorox closely monitors legislative and regulatory proposals, including 
climate change initiatives that may impact business operations, through 
our Government Affairs office. Clorox communicates with policymak
Keyword: tax
taxes or Emissions Trading Schemes (ETSs): Mexico, Colombia, Chile, 
Argentina, Ontario/Canada, China and California/ USA. Emerging 
regulations such as carbon taxes or ETF’s are examples of a risk that 
could impact our business in other states, regions, or countries. 
Because the GHG footprints of individual production facilities are 
relatively small compared to proposed regulatory thresholds for cap 
and trade, Clorox believes the risk presented by future regulation and 
general risks related to climate change are manageable given our 
current approach and planned initiatives. 
 
Technology 
Relevant, 
always 
included 
Our climate-related risk management approach includes the 
assessment of technology related to renewable energy, fuel cells
Keyword: tax
related to air permitting and pending carbon taxes or emissions trading 
schemes. New air regulations, for example, have the potential to impact 
cost of operations at facilities that have complex air permits, such as 
our Kingsford plants. Legal is also integrated into climate related risks 
assessments as it relates to the potential for external litigation. 
Market 
Relevant, 
always 
included 
Climate related risks and opportunities are at the forefront of our 
decision making processes to ensure that Clorox remains a leader in 
corporate responsibility while maintaining Purpose Driven Growth. 
Clorox has an ambitious set of environmental, social and governance 
(ESG) leadership goals integrated with our strategic business choices, 
as part of our integrated long-term corporate strategy
Keyword: tax
cap and trade schemes, taxes and the carbon pricing which would have a direct impact 
Clorox Company CDP Climate Change Questionnaire 2021 Wednesday, July 28, 
2021 
 
22 
 
on our operations. Increased regulations could increase the cost of energy, fuel, and 
operations that produce direct emissions as well as increase product distribution costs. 
The Clorox Company has operations in the following countries or regions, which have 
existing or pending carbon taxes or Emissions Trading Schemes (ETS): Mexico, 
Colombia, Chile, Argentina, Ontario/Canada, China and California/USA. Operations in 
these locations have the potential to be directly impacted by the cost of Carbon Taxes or 
ETSs. Because the GHG footprints of individual production facilities are relatively smal
Keyword: tax
manageable given our current approach and planned initiatives. Carbon taxes are paid 
by these operations when they are passed on by the utilities, but we are not directly 
taxed for carbon emissions. Similarly, we currently are not impacted by these emissions 
trading schemes as our industries are not currently in scope or our levels of emissions. 
However, we recognize the risk to our operations and work to understand and minimize 
the potential risk and stay abreast of changes in regulations in the countries and regions 
in which we operate. 
Time horizon 
Medium-term 
Likelihood 
More likely than not 
Magnitude of impact 
Low 
Are you able to provide a potential financial impact figure? 
Yes, an estimated range 
Potential financial impact figure (currency) 
 
Potential financial impact figure – minimum (curren
Keyword: tax
The impact to our business would include fees and taxes related to emissions from our 
manufacturing sites in countries /regions we operate in that have carbon taxes or ETS 
programs. Currently, emissions from our operations are below the threshold for fees/ 
taxes or our industries are not impacted by fees/taxes in countries where carbon taxes 
or ETS programs exist. However, the potential exists for our businesses to be impacted 
should regulations change regarding industries impacted or emissions thresholds. 
Based on our current emissions in countries where current regulations exist, should 
these regulations change to impact our business, we calculate our estimated costs to be 
in the range of $10,000 to $80,000 per year. These estimates are based on our current 
carbon tax rates (Chile @$
Keyword: tax
the next 10 years in those countries. We are not anticipating additional carbon taxes on 
our energy use or on our direct emissions based on strategy of 100% renewable 
electricity in the US in 2021. 
Cost of response to risk 
100,000 
Description of response and explanation of cost calculation 
Our management method focuses on driving energy efficiency improvements in our 
operations, using lower carbon sources of energy, and investing in renewable energy 
projects, and purchasing offsets. In addition, we set both energy and greenhouse gas 
reduction targets. In 2018, we implemented energy efficiency and savings projects as a 
continuation of projects identified during our global facility energy audits. Projects 
include lighting upgrades, boiler replacements, and packaging line upgrades. These 
projects are tracked at bot
Keyword: tax
These reductions will minimize our exposure to risks related to carbon taxes. Our global 
procurement sourcing function also partners with our Energy Procurement vendor to 
optimize the cost we pay for energy and find opportunities for the procurement of low 
carbon energy. Our cost of management of $100,000 includes costs to manage our 
utility procurement program. Associated costs to manage also include the purchase of 
offsets for emissions associated with our Burt's Bees business.  Additional costs would 
be expected if the company needs to engage with a third party to assist with a country 
or area specific procurement requirements. 
Comment 
This response may contain “forward-looking” statements based on management's 
current views, beliefs, assumptions and expectations regarding future events and speak 
only
Keyword: tax
potential costs associated with cap and trade schemes and taxes on carbon, fuel and 
energy. 
Time horizon 
Short-term 
Likelihood 
Clorox Company CDP Climate Change Questionnaire 2021 Wednesday, July 28, 
2021 
 
34 
 
Likely 
Magnitude of impact 
Low 
Are you able to provide a potential financial impact figure? 
Yes, an estimated range 
Potential financial impact figure (currency) 
 
Potential financial impact figure – minimum (currency) 
50,000 
Potential financial impact figure – maximum (currency) 
10,000,000 
Explanation of financial impact figure 
The financial impact is estimated to be $50,000 to over $1,000,000 per year. This is 
based on the cost of a single project to replace LED lighting to major retrofits at multiple 
locations in the company. Some of these costs are offset by efficiency g
Keyword: tax
minimize the potential impact of carbon taxes. Other transitional aspects of climate change 
include the shift in consumer preferences towards lower emission products which fuels our 
innovation strategy related to minimizing the environmental footprint of our products. The need 
to prevent a catastrophic global temperature increase has influenced our strategy to 
understand how a well below 2 degree or 1.5 degree strategy might impact our long term 
goals.  
Our short term and long term strategy has been influenced by consumer-driven opportunities 
as well as physical and transitional risks. Physical risks have impacted our strategy around 
ensuring business continuity plans are robust to respond to severe weather impacts. Our Ignite 
Strategy to integrate our ESG leadership goals ou
Keyword: tax
(i.e. ETS, Cap & Trade or Carbon Tax)? 
No, and we do not anticipate being regulated in the next three years 
Clorox Company CDP Climate Change Questionnaire 2021 Wednesday, July 28, 
2021 
 
99 
 
C11.2 
(C11.2) Has your organization originated or purchased any project-based carbon 
credits within the reporting period? 
No 
C11.3 
(C11.3) Does your organization use an internal price on carbon? 
No, and we do not currently anticipate doing so in the next two years 
C12. Engagement 
C12.1 
(C12.1) Do you engage with your value chain on climate-related issues? 
Yes, our suppliers 
C12.1a 
(C12.1a) Provide details of your climate-related supplier engagement strategy. 
 
Type of engagement 
Information collection (understanding supplier behavior) 
Details of engagement 
 
% of su
Keyword: governance
Social, and Governance (ESG) planet goals, build on our previous 2020 strategy and call for us 
Clorox Company CDP Climate Change Questionnaire 2021 Wednesday, July 28, 
2021 
 
2 
 
to demonstrate leadership in plastic and other waste reduction and science-based climate 
action, as we continue to uphold our commitments to water stewardship, responsible sourcing 
and other material reduction innovations to reduce material, water, and transportation footprints 
of our products during consumer use and at the end of life.  
As part of Clorox’s IGNITE strategy ESG goals, we have committed to science-based climate 
action across our value-chain, 100% renewable electricity in our US and Canada operations, 
and zero-waste-to-landfill in our global facilities. As we pur
Keyword: governance
Clorox’s integrated IGNITE Strategy puts environmental, social and governance (ESG) 
priorities at the forefront of our decision-making to ensure Clorox remains a leader in corporate 
responsibility. 
C0.2 
(C0.2) State the start and end date of the year for which you are reporting data. 
 
Start date 
End date 
Indicate if you are providing emissions data for 
past reporting years 
Reporting 
year 
January 1, 
2020 
December 31, 
2020 
No 
C0.3 
(C0.3) Select the countries/areas for which you will be supplying data. 
Argentina 
Canada 
Chile 
China 
Colombia 
Costa Rica 
Mexico 
Peru 
Philippines 
Puerto Rico 
Saudi Arabia 
United States of America 
Clorox Company CDP Climate Change Questionnaire 2021 Wednesday, July 28, 
2021 
 
3 
 
C0.4 
(C0.4) Select the currency used for all financial information disclosed thr
Keyword: governance
C1. Governance 
C1.1 
(C1.1) Is there board-level oversight of climate-related issues within your 
organization? 
Yes 
C1.1a 
(C1.1a)  Identify the position(s) (do not include any names) of the individual(s) on the 
board with responsibility for climate-related issues. 
Position of 
individual(s) 
Please explain 
Other, please 
specify 
Committee of 
the Board of 
Directors 
The Board of Directors Nominating, Governance and Corporate Responsibility 
Committee (NGCRC), comprised exclusively of independent directors, oversees 
Clorox’s corporate responsibility and sustainability program, including all climate 
related issues. The committee oversees the Company’s environmental, social 
and governance (ESG) process and approach and regularly discuss with 
ma
Keyword: governance
Clorox continues to be committed to strong governance and ESG performance 
and is working to further tie elements of ESG goals to executive compensation 
awards. 
 
C1.1b 
(C1.1b) Provide further details on the board’s oversight of climate-related issues. 
Frequency with 
which climate-
related issues are 
a scheduled 
agenda item 
Governance 
mechanisms into 
which climate-related 
issues are integrated 
Please explain 
Scheduled – some 
meetings 
Reviewing and guiding 
strategy 
Reviewing and guiding 
major plans of action 
Environmental sustainability is an integral part of our 
overall Corporate Business Strategy. 
The highest level of responsibility for climate change 
rests with the Board of Directors Nominating, 
Governance and Corporate Responsibility Committee 
Clorox Company CDP Cli
Keyword: governance
governance, GHG goals, and areas of developing 
focus from key stakeholders related to climate 
change. As noted previously, the full Board oversees 
Clorox’s enterprise risk management program, which 
includes the specifically identified risk of climate 
change and also takes note of the long-term nature of 
Climate risk, which extends well beyond typical 
business planning cycles and enterprise risk time 
horizons. 
 
The full board of directors receives regular ESG 
updates on key topics from members of Clorox’s 
management team, including members of its ESG 
Executive Team. The company’s ESG Executive 
Team, comprised of Clorox’s EVP, Chief Growth 
Officer, EVP, Chief People and Corporate Affairs 
Officer and SVP, Chief Legal Officer – each repor
Keyword: governance
be committed to strong governance and ESG 
performance and is working to further tie elements of 
ESG goals to executive compensation awards. 
 
 
Reviewing and guiding 
risk management 
policies 
Clorox has a comprehensive enterprise risk 
management process to identify, assess and prioritize 
potential business risks. The process includes 
identifying risks, assessing exposures and quantifying 
the value at risk. The evaluation considers level of 
impact, the vulnerability to an event based on the time 
and capacity to react and adapt, and likelihood of an 
occurrence. 
An Enterprise Risk Management (ERM) Steering 
Committee, consisting of senior leaders across the 
organization, was established to provide a sustainable
framework to proactively identify, understand, asse
Keyword: governance
Our IGNITE Strategy also includes Governance goals to “Enhance our 
leadership in ESG through an unwavering commitment to strong 
corporate governance and ESG performance overseen by the board 
of directors.” This goal is operationalized by establishing executive 
compensation awards that are tied to elements of our ESG goals for 
members of the Clorox executive committee, including for the CEO. 
Clorox continues to be committed to strong governance and is working 
to tie elements of ESG goals to executive compensation awards. 
C1.3a 
(C1.3a) Provide further details on the incentives provided for the management of 
climate-related issues  (do not include the names of individuals). 
Entitled to 
incentive 
Type of 
incentive 
Activity 
inventivized 
Comment 
Chief Executive 
Officer (
Keyword: governance
role within Clorox’s wider governance structure for effective risk management. Similar to the 
model, Clorox’s first line lies with the business and process owners who own and manage risks. 
The second line is put in place to provide internal monitoring and oversight. Lastly, the third line 
provides independent assurance to senior management and the Board of Directors concerning 
the effectiveness of management controls.  
Our ERM Center of Expertise (ERM COE) has integrated processes with Strategic Planning 
and Internal Audit. On an annual basis, enterprise risks are refreshed, with a three year 
outlook, based on input from the Functions and Business Leaders. The Leaders provide 
Clorox Company CDP Climate Change Questionnaire 2021 Wednesday, July 28, 
2021 
 
12 
 
update
Keyword: governance
play a distinctive role within Clorox’s wider governance structure for effective risk 
management. Similar to the model, Clorox’s first line lies with the business and process 
owners who own and manage risks. The second line is put in place to provide internal 
monitoring and oversight. Lastly, the third line provides independent assurance to senior 
management and the Board of Directors concerning the effectiveness of management 
controls. Among other functions that are part of the second line, the Enterprise Risk 
Management (ERM) program was established by Clorox to provide a sustainable 
framework to proactively identify, understand, assess, prioritize, articulate and 
continuously manage risks, both existing (short-term) and emerging (medium-, long-
term), across the entire organization.
Keyword: governance
Clorox has an ambitious set of environmental, social and governance 
(ESG) leadership goals integrated with our strategic business choices, 
as part of our integrated long-term corporate strategy called IGNITE. 
Our IGNITE strategy integrates environmental, social and governance 
priorities with our business priorities, furthering our vision of earning 
people’s enduring loyalty in the Market and creating long-term value for 
all stakeholders. 
Our climate-related risk management approach takes into account 
market factors. Our stockholders are increasingly demanding proactive 
steps in managing, overseeing, disclosing and planning for business 
disruptions and opportunities related to climate change. The ability to 
engage with and meet the expectations of our investors can impact the 
price of our public
Keyword: governance
Goals integrate environmental, social and governance priorities with our business priorities, 
furthering our vision of earning people’s enduring loyalty and creating long-term value for all 
stakeholders. As we work towards setting a SBT with the Science-based Target Initiative, 
Clorox continues to be committed to the principles established as part of our 2020 goals. In 
2019, we reset our global footprint baseline for Energy, Greenhouse Gasses, Water, and 
Waste to calendar year 2018. We continue to ensure all our facilities are managing their water 
use responsibly, while seeking further efficiency gains and other opportunities to reduce their 
overall sustainability helping to offset and mitigate the effects of increased consumption due to 
business growth. 
Examples of linkages: 
Cloro
Keyword: governance
Incentives: In 2019 we added an Ignite Goal for ESG Governance, 
which establishes that Executive compensation awards will be tied to 
elements of our ESG goals for members of the Clorox executive 
committee, including for the chair and CEO. Clorox also established a 
Sustainability Center, responsible for driving the company’s corporate 
environmental priorities and enabling business units and functions as 
they more deeply integrate sustainability into their own strategies. 
Clorox’s broader sustainability effort includes key members from each 
business Leadership Team, subject matter experts across a wide 
range of functions all tasked with addressing various aspects of 
monitoring/measuring and reducing our climate related impacts while 
also driving Purpose Driven Growth. This broader team has in
Keyword: governance
Pg 39 TCFD disclosures: Governance, Strategy, Risk, and Metrics & Targets. 
Pg 40 Ten Principals of United Nations Global Compact - Environment:  Nos. 7, 8, and 
9. 
Content elements 
Governance 
Strategy 
Risks & opportunities 
Emissions figures 
Emission targets 
Other metrics 
Comment 
 
C15. Signoff 
C-FI 
(C-FI) Use this field to provide any additional information or context that you feel is 
relevant to your organization's response. Please note that this field is optional and is 
not scored. 
 
C15.1 
(C15.1) Provide details for the person that has signed off (approved) your CDP climate 
change response. 
 
Job title 
Corresponding job category 
Row 1 
Environmental Sustainability Manager 
Environment/Sustainability manager 
Clorox Company CDP Climate Change Questionn
Keyword: governance
Clorox’s integrated IGNITE Strategy puts environmental, social and governance priorities at the 
forefront of our decision-making to ensure Clorox remains a leader in corporate responsibility.  
SC0.1 
(SC0.1) What is your company’s annual revenue for the stated reporting period? 
 
Annual Revenue 
Row 1 
7,524,000,000 
SC0.2 
(SC0.2) Do you have an ISIN for your company that you would be willing to share with 
CDP? 
No 
SC1.1 
(SC1.1) Allocate your emissions to your customers listed below according to the 
goods or services you have sold them in this reporting period. 
 
Requesting member 
Walmart, Inc. 
Scope of emissions 
Scope 1 
Allocation level 
Company wide 
Allocation level detail 
 
Emissions in metric tonnes of CO2e 
16,160 
Uncertainty (±%) 
1 
Major sources of emissions 
Clorox Company CDP Climate Change
Keyword: bribe
work against corruption in all soliciting, offering and accepting bribes, kickbacks and other prohibited payments by its employees, directors and
its forms, including extortion business partners. We abide by anticorruption laws everywhere we do business in the world, without exception.
and bribery. These laws include the U.S. Foreign Corrupt Practices Act and the UK Bribery Act 2010, as well as all applicable
anti-corruption and anti-bribery laws in each country in which we do business. 100% of the company’s leaders and
employees must go through anti-corruption training. 100% of the company’s suppliers must adhere to the Business
Partner Code of Conduct, which addresses ethical business practices.
The Clorox board of directors meets at least quarterly to review key issues and opportunities impacting the company
Keyword: corruption
Anti-corruption Principle 10: Businesses should At Clorox, our values are an intrinsic part of who we are as a company and as individuals. Clorox strictly forbids giving,
work against corruption in all soliciting, offering and accepting bribes, kickbacks and other prohibited payments by its employees, directors and
its forms, including extortion business partners. We abide by anticorruption laws everywhere we do business in the world, without exception.
and bribery. These laws include the U.S. Foreign Corrupt Practices Act and the UK Bribery Act 2010, as well as all applicable
anti-corruption and anti-bribery laws in each country in which we do business. 100% of the company’s leaders and
employees must go through anti-corruption training. 100% of the comp
Keyword: tax
management believes they are useful to investors and reconciliations to the most noncash, nonrecurring net gain was recognized of $82 ($76 after tax) in Other
directly comparable financial measures calculated and presented in accordance (income) expense, net in the quarter ended Sept. 30, 2020, primarily due to the
with U.S. GAAP. These non-GAAP financial measures should not be considered in remeasurement of the carrying value of the company’s previously held equity
isolation or as a substitute for the comparable GAAP measures; should be read in investment to fair value.
connection with the company’s consolidated financial statements presented in v During the quarter ended March 31, 2021, noncash impairment charges of goodwill,
accordance with GAAP; and may not be the same as similar measures provided trademarks and other assets were recorded of $329 ($267 after tax) related to the
by
Keyword: tax
differences in which items are incorporated into these adjustments. For additional vi During the quarter ended June 30, 2021, noncash charges of $28 ($21 after tax)
details regarding the reconciliation of GAAP and non-GAAP financial measures were recorded on investments and related arrangements made with a Professional
below, see the company’s Current Reports on Form 8-k filed with the SEC and in the Products business supplier.
Investors section of the company’s website www.thecloroxcompany.com. vii Fiscal year 2022 includes $61 ($47 after tax) of incremental operating
expenses primarily recorded within selling and administrative expenses
related to implementation of the company’s digital capabilities and productivity
1Reconciliation of EBIT and Adjusted EBITi,ii,iii
enhancements investment, which are recorded within the Corporate segment.
Dollars in millions and percentages based on rounded numbers
Keyword: tax
Earnings before income taxes $ 607 $ 900 $ 1,185
12 Months Ended June 30, 2022
Interest income (5) (5) (2)
Interest expense 106 99 99 External consulting feesa $ 43
EBITi,iii $ 708 $ 994 $ 1,282 IT project personnel costsb 11
EBIT margini,iii 10.0% 13.5% 19.1% Otherc 7
Saudi JV acquisition gainiv $ 0 $ (82) $ 0 Total $ 61
VMS impairmentv 0 329 0
Professional Products supplier chargevi 0 28 0 a Comprised of third-party consulting fees incurred to assist in the project
Digital capabilities and productivity enhancements management and the preliminary project stage of this transformative
61 0 0
investmentvii investment. The company relies on consultants for certain capabilities required
Adjusted EBIT — non-GAAPii,iii $ 769 $ 1,269 $ 1,282 for these programs that it does n
Keyword: tax
i EBIT (a non-GAAP measure) represents earnings before income taxes (a GAAP teams that are utilized to oversee the new system implementations. Given the
measure), excluding interest income and interest expense, as reported above. EBIT magnitude and transformative nature of the implementations planned, the
margin is the ratio of EBIT to net sales. necessary project management costs are incremental to the historical levels of
ii Adjusted EBIT (a non-GAAP measure) represents earnings before income taxes spend and will no longer be incurred subsequent to implementation. As a result of
(a GAAP measure), excluding interest income, interest expense and other significant this long-term strategic investment, the company does not consider these costs
items that are nonrecurring or unusual, such as asset impairments,
Keyword: tax
noncash, nonrecurring net gain was recognized of $82 ($76 after tax) in Other
Earnings before income taxes $ 607 $ 900 $ 1,185 (income) expense, net in the quarter ended Sept. 30, 2020, primarily due to the
Add back:
remeasurement of the carrying value of the company’s previously held equity
Certain U.S. GAAP chargesii,iii 61 357 2
investment to fair value.
Interest expense 106 99 99
v The tax rate applied is the effective tax rate before the identified U.S. GAAP items
Less:
was 22.5%, 20.7% and 20.8% in fiscal years 2022, 2021 and 2020, respectively. The
Saudi JV acquisition gainiv — 82 —
difference between the fiscal year 2022 effective tax rate on earnings of 22.4%
Earnings before income taxes, certain U.S.
is due to the tax rate impact of the incremental operating expenses recorded
GAAP items and inter
Keyword: tax
Income taxes on earnings before income taxes,
enhancements investment of 0.1%. The difference between the fiscal year
2021 effective tax rate on earnings of 20.1% is due to the tax rate impact of the
certain U.S. GAAP items and interest expensev 174 264 267
Professional Products supplier charge, VMS impairment and Saudi JV acquisition
Adjusted after-tax profit $ 600 $ 1,010 $ 1,019
gain of 0.1%, (0.4)% and 0.9%, respectively.
Less:
vi Total capital employed represents total assets less noninterest-bearing liabilities.
After-tax profit attributable to
9 9 — Adjusted capital employed represents total capital employed adjusted to add back
noncontrolling interest
current-year, after-tax U.S. GAAP items, as applicable, and deduct the current-year,
Adjusted after-tax profit attributable to
Keyword: tax
after-tax, noncash, nonrecurring gain. Average capital employed is the average
Average capital employedvi $ 3,428 $ 3,655 $ 3,478 of Adjusted capital employed for the current year and Total capital employed for
Less:
the prior year, based on year-end balances. See below for details of the Average
Capital chargevii $ 309 $ 329 $ 313 capital employed calculation.
vii Capital charge represents Average capital employed multiplied by a cost of capital,
Economic profiti (Adjusted after-tax profit
$ 282 $ 672 $ 706 which was 9% for all fiscal years presented. The calculation of capital charge
attributable to Clorox less capital charge)
includes the impact of rounding numbers.
i Economic profit, or EP, is defined by the company as earnings before income tax
Keyword: tax
expense; less income taxes (calculated based on the company’s effective tax Current operating lease liabilities 78 81 64
rate excluding the identified U.S. GAAP items); and less after-tax profit attributable Income taxes payable — — 25
to noncontrolling interests, and less a capital charge (calculated as average capital Long-term operating lease liabilities 314 301 278
employed multiplied by a cost of capital rate). EP is a key financial metric that the Other liabilities viii 778 819 755
company’s management uses to evaluate business performance and allocate Deferred income taxes 66 67 62
resources and is a component in determining employee incentive compensation. Noninterest-bearing liabilities 2,699 2,938 2,511
The company’s management believes EP provides additional perspective to investors Total capital employ
Keyword: tax
about financial returns generated by the business and represents profit generated After tax certain U.S. GAAP items iii,iv 0 212 2
over and above the cost of capital used by the business to generate that profit. Adjusted capital employed vi $ 3,459 $ 3,608 $ 3,704
Average capital employed $ 3,428 $ 3,655 $ 3,478
ii Fiscal year 2022 includes $61 ($47 after tax) of incremental operating expenses
primarily recorded within Selling and administrative expenses related to
viii Accounts payable and accrued liabilities and Other liabilities are adjusted to
implementation of the company’s digital capabilities and productivity
exclude interest-bearing liabilities.
enhancements investment. Refer to the above Reconciliation of EBIT and
Adjusted EBIT, footnote vii, for more information.
iii Fiscal year 2021 includes impairment charges of $329
Keyword: tax
(after tax $267) of which $228,
$93 and $8 related to the goodwill of the VMS reporting unit, certain indefinite-lived
trademarks and other assets, respectively, and noncash charges of $28 ($21 after
tax) on investments and related arrangements made with a Professional Products
business supplier.
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CLOROX | 2022 INTEGRATED REPORTCEO IGNITE COMPANY GROWTH & HEALTHY CLEAN THRIVING STRONG FINANCIAL VALUE ESG ABOUT THIS
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
3Reconciliation of Adjusted EPSi,ii 4Reconciliation of Free Cash Flow
Dollars in millions except per share data FY22 FY21 FY20 Dollars in millions and percentages based on rounded numbers FY22 FY21 FY20
As reported (GAAP) $ 3.
Keyword: tax
The income tax effect on non-GAAP items is calculated based upon the tax and financing activities, including debt payments, dividend payments and stock
laws and statutory income tax rates applicable in the tax jurisdiction(s) of the repurchases. Free cash flow does not represent cash available only for discretionary
underlying non-GAAP adjustment. expenditures since the company has mandatory debt service requirements and
ii Adjusted EPS is supplemental information that management uses to help evaluate other contractual and nondiscretionary expenditures. The three-year average free
the company’s historical and prospective financial performance on a consistent cash flow is calculated as the average free cash flow as a percentage of net sales for
basis over time. Management believes that by adjusting for certain i
Keyword: tax
iii Fiscal year 2022 includes $61 ($47 after tax) of incremental operating expenses
primarily recorded within Selling and administrative expenses related to
implementation of the company’s Digital capabilities and productivity
enhancements investment. Refer to the above Reconciliation of EBIT and
Adjusted EBIT, footnote vii, for more information.
iv During the quarter ended June 30, 2021, noncash charges of $28 ($21 after tax)
were recorded on investments and related arrangements made with a Professional
Products business supplier.
v During the year ended June 30, 2021, noncash impairment charges of goodwill,
trademarks and other assets were recorded of $329 ($267 after tax) related to the
VMS business.
vi On July 9, 2020, the company increased its investment in each of the two
entities
Keyword: tax
noncash, nonrecurring net gain was recognized of $82 ($76 after tax) in Other
(income) expense, net in the quarter ended Sept. 30, 2020, primarily due to the
remeasurement of the carrying value of the company’s previously held equity
investment to fair value.
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CLOROX | 2022 INTEGRATED REPORTCEO IGNITE COMPANY GROWTH & HEALTHY CLEAN THRIVING STRONG FINANCIAL VALUE ESG ABOUT THIS
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Reinventing how we
connect with consumers
Through a $500 million strategic investment over a five-year period that
started in fiscal year 2022, we’re transforming our digital capabilities and
culture to drive purpose-driven growth.
One of the investment pillars within our digital transformation initiative is
focused on
Keyword: tax
Earnings before income taxes 607 900 1,185
Income taxes 136 181 246
Net earnings 471 719 939
Less: Net earnings attributable to noncontrolling interests 9 9 —
Net earnings attributable to Clorox $ 462 $ 710 $ 939
Net earnings per share attributable to Clorox
Basic net earnings per share $ 3.75 $ 5.66 $ 7.46
Diluted net earnings per share $ 3.73 $ 5.58 $ 7.36
Weighted average shares outstanding (in thousands)
Basic 123,113 125,570 125,828
Diluted 123,906 127,299 127,671
See Notes to Consolidated Financial Statements
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CLOROX | 2022 INTEGRATED REPORTCEO IGNITE COMPANY GROWTH & HEALTHY CLEAN THRIVING STRONG FINANCIAL VALUE ESG ABOUT THIS
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Condensed Consolidate
Keyword: tax
Foreign currency adjustments, net of tax (45) 47 (36)
Net unrealized gains (losses) on derivatives, net of tax 100 39 5
Pension and postretirement benefit adjustments, net of tax 12 8 (7)
Total other comprehensive (loss) income, net of tax 67 94 (38)
Comprehensive income 538 813 901
Less: Total comprehensive income attributable to noncontrolling interests 9 9 —
Total comprehensive income attributable to Clorox $ 529 $ 804 $ 901
See Notes to Consolidated Financial Statements
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CLOROX | 2022 INTEGRATED REPORTCEO IGNITE COMPANY GROWTH & HEALTHY CLEAN THRIVING STRONG FINANCIAL VALUE ESG ABOUT THIS
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Condensed Consolidated Balance Sheets
As of June 30
Dollars in millions, ex
Keyword: tax
Deferred income taxes 66 67
Total liabilities 5,429 5,742
Commitments and contingencies
Stockholders’ equity
Preferred stock: $1.00 par value; 5,000,000 shares authorized; none issued or outstanding — —
Common stock: $1.00 par value; 750,000,000 shares authorized; 130,741,461 shares issued as of June 30, 2022, and 2021; and 123,152,132 and
131 131
122,780,220 shares outstanding as of June 30, 2022, and 2021, respectively
Additional paid-in capital 1,202 1,186
Retained earnings 1,048 1,036
Treasury stock, at cost: 7,589,329 and 7,961,241 shares as of June 30, 2022, and 2021, respectively (1,346) (1,396)
Accumulated other comprehensive net (loss) income (479) (546)
Total Clorox stockholders’ equity 556 411
Noncontrolling interests 173 181
Total stockholders’ equi
Keyword: tax
Deferred income taxes 5 (32) (2)
Goodwill, trademark and other asset impairments — 329 —
Settlement of interest rate derivative contracts 114 — —
Other 19 10 30
Changes in:
Receivables, net (84) 82 (27)
Inventories, net (18) (282) 50
Prepaid expenses and other current assets 16 (30) 2
Account payable and accrued liabilities (47) 311 291
Operating lease right-of-use assets and liabilities, net (1) (2) 19
Income taxes payable/prepaid 35 (90) 14
Net cash provided by operations 786 1,276 1,546
Investing activities:
Capital expenditures (251) (331) (254)
Businesses acquired, net of cash acquired — (85) —
Other 22 (36) 2
Net cash used for investing activities (229) (452) (252)
See Notes to Consolidated Financial Statements
45
CLOROX | 2022 INTEGRATED REPORTCEO IGNITE
Keyword: tax
Income taxes paid, net of refunds 100 303 241
Noncash financing activities:
Cash dividends declared and accrued, but not paid 14 156 140
See Notes to Consolidated Financial Statements
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CLOROX | 2022 INTEGRATED REPORTCEO IGNITE COMPANY GROWTH & HEALTHY CLEAN THRIVING STRONG FINANCIAL VALUE ESG ABOUT THIS
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Auditor statement
Report of Independent Registered Public Accounting Firm on Condensed Financial Statements
To the Stockholders and the Board of Directors of
The Clorox Company
We have audited, in accordance with the standards We also have audited, in accordance with the standards of the Public
of the Public Company Accounting Oversight Boa
Keyword: tax
• Tax and economic contribution
strategic choices, ESG reporting frameworks, ESG raters • Cybersecurity, data security and privacy
and peer ESG efforts. We developed an initial prioritized • Consumer engagement on sustainability
list of topics, then conducted interviews with internal and • Advocacy and public practices
• Product accessibility and affordability
external stakeholders to share their perspectives and
validate our findings. We then refined the list based on
their input, resulting in a prioritization of ESG topics.
• Human and labor rights in the supply chain
• Responsible marketing and advertising
Finally, we referenced these findings against our existing • Employee engagement and development
ESG priorities to understand if any adjus
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Dear
Stakeholder,
Linda Rendle, Chief Executive Officer
The past year brought ongoing volatility and challenges, yet we maintained Net sales decreased 3% compared to 9% growth in the prior year. While
a relentless focus on living our purpose and investing in our people, brands demand has come down from what we saw at the start of the pandemic,
and capabilities to navigate this tough environment and build a stronger, particularly in our cleaning and disinfecting portfolio, we’re a bigger business
more resilient company for the long term. Our IGNITE strategy, which has today than prior to the pandemic, and our cleaning and disinfecting portfolio
served us well over the past three years, remains as relevan
Keyword: governance
and fully integrating environmental, social and governance considerations our portfolio was deemed superior by consumers as measured by our
into our business to mitigate risks, maximize opportunities and effect consumer value metric.
positive change overall.
We’re leveraging the strength of our brands to take advantage of demand-
A year of extraordinary challenges driven tailwinds — higher awareness of health and hygiene, spending more
Against the backdrop of record-high input cost inflation, ongoing demand time at home, reinforced by enduring hybrid work and digital adoption
normalization and supply chain disruptions, we continued to execute on
what we could control and made progress on our priorities to drive growth
and rebuild margin.
3
CLOROX | 2022 INTEGRATED REPORTCEO IGNITE COMPANY GROWTH &
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
acceleration — which are creating long-term growth opportunities across tailwinds, I continue to have high conviction in our ability to deliver on our
our portfolio. Relative to fiscal year 2019, our three-year average net sales 3% to 5% long-term sales growth because of the broad set of actions
growth was 5% for fiscal year 2022, in line with our long-term goal of 3% to we’re taking and all the investments we’re making to position ourselves for
5%. This demonstrates the strength of our diverse portfolio of well-loved success over the long run. These include:
brands and the resilience of our categories.
• Operating with discipline: We’ll continue to drive operational excellence
We responded to higher ma
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Building a more sustainable and inclusive world Recognizing that most of our emissions are generated through our value
Our purpose — to champion people to be well and thrive every single chain, or scope 3, we know that collaboration with our stakeholders is crucial to
day — drives everything we do, including how we approach our work and accelerate our emissions reductions. We recently published a climate action
the impact it has on the world around us, which is why our ESG goals are plan that outlines our approach to achieving net zero emissions by 2050, which
integrated into our business strategy and operations. We’re mobilizing our includes collaborating with others and leveraging new technologies and
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Company purpose and strategy
Throughout the 2022 fiscal year, our purpose and IGNITE strategy served as valued guideposts to help us navigate a tough environment and take important
steps to build a stronger, more resilient company for the long term.
Purpose Vision Objective
We champion people to be well Exceptional innovators who earn Deliver purpose-driven growth.
and thrive every single day. people’s enduring loyalty.
IGNITE strategy
ESG
Integrated strategic choices
INNOVATE Experiences
N
N
OVATE Experienc
EVOLVE Portfolio
Turn data into insights to build purpose-
I es
Broaden our playing field in and around
driven, personalized brands and deliver our core business, emphasizing consumer
bigger, sticki
Keyword: governance
Thriving Communities Strong Governance
Investing in our people and communities to Enhancing our leadership in ESG through an unwavering
contribute to a more equitable world. commitment to strong corporate governance and ESG
performance overseen by the board of directors.
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CLOROX | 2022 INTEGRATED REPORTCEO IGNITE COMPANY GROWTH & HEALTHY CLEAN THRIVING STRONG FINANCIAL VALUE ESG ABOUT THIS
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Our business: Sales by segment
FY22 at a glance
37% 8%
Cat Litter
Health and Fresh Step
Scoop Away
Wellness
Ever Clean
29%
Cleaning
18%
$7.1B Clorox
Clorox 2
Lifestyle
net sales Scentiva
Pine-Sol 10%
Liquid-Plumr Food Products
Tilex Hidden Valley
9,000
17% Formula 409
employees 4%
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Our global
footprint*
Administrative/
Sales Office
Plants
R&D Facilities
Joint Ventures
Global Headquarters
North America South America Africa Australia
United States Colombia Kenya
Canada Ecuador South Africa New Zealand
Mexico Peru
Puerto Rico Argentina Middle East Asia
Panama Chile Egypt China
Costa Rica Uruguay Saudi Arabia South Korea
United Arab Hong Kong
Europe
Emirates Philippines
United Kingdom
Malaysia
* Excludes third-party manufacturers and copackers.
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CLOROX | 2022 INTEGRATED REPORTCEO IGNITE COMPANY GROWTH & HEALTHY CLEAN THRIVING STRONG FINANCIAL VALUE ESG ABOUT THIS
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Growth &