exo-is/governance-reporting-on-listed-companies huggingface dataset:
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
IGNITE progress snapshot
Despite a very challenging operating environment in fiscal year 2022, including record-high input cost inflation and ongoing pandemic-driven volatility, our
results for three-year net sales growth and free cash flow continued to meet the long-term financial goals laid out in our IGNITE strategy, and we continued
to make sequential improvements to return to gross margin expansion.
LONG-TERM GOAL PROGRESS*
Financial
Grow net sales 3%-5% 5% (three-year CAGR)
Expand adjusted EBIT margin +25 to +50 basis points -240 basis points (three-year average)1
Deliver free cash flow as percentage of net sales 11% to 13% 13% (three-year average)4
* As of June 30, 2022, unless stated otherwise.
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Financial performance
Net Sales Net Sales Growth Adjusted EBIT Margin1
($ millions) (vs year ago) (as a % of Net Sales)
(non-GAAP)
$6,721 $7,341 $7,107 +8% +9% -3% 19.1% 17.3% 10.8%
FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22
Economic Profit2 Adjusted EPS3 Free Cash Flow4
($ millions) (non-GAAP) (% of Net Sales)
(non-GAAP) (non-GAAP)
$706 $672 $282
$7.36 $7.25 $4.10 19.2% 12.9% 7.5%
FY20 FY21 FY22
FY20 FY21 FY22 FY20 FY21 FY22
11
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
Financial footnotes
See footnotes below for
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
2Reconciliation of Economic Profiti iv On July 9, 2020, the company increased its investment in each of the two
entities comprising its Saudi joint venture. As a result of this transaction, a
Dollars in millions FY22 FY21 FY20
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 2
Keyword: governance
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) $ 3.73 $ 5.58 $ 7.36
Net cash provided by operations — GAAP $ 786 $ 1,276 $ 1,546
Digital capabilities and productivity enhancements
Less:
investmentiii 0.37 — —
Capital expenditures 251 331 254
Professional Products supplier chargeiv — 0.17 —
Free cash flow — non-GAAP $ 535 $ 945 $ 1,292
VMS impairmentv — 2.10 —
Free cash flow as a percentage of net sales — non-GAAP 7.5% 12.9% 19.2%
Saudi JV acquisition gainvi — (0.60) —
Net sales $ 7,107 $ 7,341 $ 6,721
As adjusted (Non-GAAP)i,ii $ 4
Keyword: governance
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 accelerating our IGNITE strategy with data and leading-edge
technology to build stronger relationships with consumers and customers.
Here are some highlights of our investments to date:
Personalized, data-driven consumer messaging
To better serve our consumers, we need to know more about them — who
they are, what they value and where they shop, while also being respectful
of people’s priv
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Innovation across our brands
From our leading, trusted brands that consumers have loved for decades while continuing to move forward with bigger ideas. In fiscal year 2022,
to emerging brands that are still growing in awareness, innovation is critical for example, we began testing the use of Clorox Disinfecting Mist in
in every part of our business. Innovation helps us address unmet consumer convenient travel size at hotel locations in Florida and Hawaii, making
needs, keeps our brands top of mind and brings joy to life’s everyday moments weekly adjustments based on feedback. Learnings from this test will
in new ways. inform whether alternative channels provide additional ways to reach
consumers with a
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
business applies trend sensing to understand the landscape of macro-benefits spaces, category-growth forms
and trending ingredients that are shaping consumer demand. The business then develops quick-to-scale products
based on these trends, including online test and learns, and collaboration with leading-edge retailers to scale rapidly
based on results.
For more transformational innovation, our Seed to Scale team partners with our business units to create seeds of
ideas and build on them using consumer insight, marketplace trends, external partnerships and feedback from
experiments in the real world. The team’s goal is to generate and screen ideas quickly by putting out prototypes as
fast as possible, we
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
FY22 product innovation highlights
Clorox introduced innovation throughout the year encompassing new channels, partnerships, experiences and products. New products were launched in
28 categories in different markets around the world. Shaping brands takes vision and courage, and we’re proud of the progress we’ve made to continue to
earn consumers’ love and trust.
Burt’s Bees Rapid Rescue Cold Sore Treatment Fresh Step Outstretch Concentrated
Burt’s Bees Sensitive Solutions line (SPF 30 Calming Day Lotion, Calming Clumping Litter
Serum, Calming Night Cream, Calming Eye Cream)
Burt’s Bees Sensitive Healing Body Cream and Hand Lotion
Burt’s Bees Sun Care Tinted Lip Balm SPF 30,
(Wild Peony and Sienna Rose s
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Brita Elite Filter relaunch Hidden Valley Ranch Night! Dinner Packets
Brita Tahoe Pitcher Hidden Valley Ranch Plant Powered Dressing (Spicy)
Kingsford Signature Flavors Briquets and Pellets RenewLife Probiotic Gummies —
(Basil, Sage and Thyme; Cumin Chili; and Garlic, Onion and Paprika) Women’s Care, Extra Care, Kids, Immune Health
Kingsford Signature Flavors Flavor Boosters Natural Vitality CALM Magnesium Capsules
(Basil, Sage and Thyme; Cumin Chili; and Garlic, Onion and Paprika) NeoCell Beauty Builder Gummies with Collagen
Rainbow Light High Potency Vitamin C Gummies
19
CLOROX | 2022 INTEGRATED REPORTCEO IGNITE COMPANY GROWTH & HEALTHY CLEAN THRIVING STRONG FINANCIAL VALUE ESG ABOUT THIS
MESSAGE STRA
Keyword: governance
TEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Healthy
Lives
Improving people’s
health and well-being
FY22 achievement highlights
Introduced flexible time off policy and announced
enhanced family-forming benefits beginning in the
2023 calendar year, supplementing our existing paid
parental leave, adoption resources and subsidized
caregiving for teammates.
Launched products to enhance people’s well-being, including
Burt’s Bees Rescue Lip Balm with antioxidant-rich elderberry,
NeoCell Beauty Builder Gummies with collagen, biotin and
vitamin C, and CloroxPro HealthyClean, an e-learning platform
to give cleaning professionals additional knowledge and skills to
create healthier shared spaces.
Named Safer Choice U.S. Environmental Protection Agency Partne
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
IGNITE progress snapshot*
GOAL/TARGET PERFORMANCE PROGRESS**
Product Stewardship
Collaborate to advance the science behind alternative
Full approval of two of six methods On track
approaches to animal testing
Improve Chemical Footprint Project survey score for
Set targets in FY22; public reporting to begin
domestic cleaning portfolio 50% by 2030 with interim New target
in CY23
target of 35% by 2025***, 1
Completed for domestic Professional Products
Publicly share Clorox restricted substances lists Achieved
and Cleaning business units
Increase reach of SmartLabel and expand our scope of Expanded SmartLabel sustainability attributes
On track N/A†
consumer-meaningful information through industry initiative
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Taking care of
our teammates
We take a holistic approach to caring for our people, with benefits
and programs designed to support physical, mental and
financial well-being.
With the digitization of metrics related to safety and the
environment, we continued to make safety personal by
implementing and monitoring a monthly education program
in the continental U.S. In 2022, the program was expanded
internationally in four languages. With an increase in complexity,
attrition and cumulative fatigue of the broader labor force, we
reported a recordable incident rate, or RIR, of 0.56 in the fiscal
year. Although an increase from the previous year, our RIR is still
significantly lower than our goal of 1.0 and th
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Advancing health through
a focus on purpose
As a health and wellness company, we use the power of our brands
to contribute to a healthier world where people thrive. That mission
has never been clearer, as our new bleach-free and aerosol-free
Clorox products deliver trusted cleaning and disinfecting results
while making it easy to reduce waste with reusable packaging. In
addition, our Brita filters are providing a sustainable, short-term
solution to protect public health in communities where lead is
detected in the water supply — just one example of the mission-
focused priorities of our brands.
We know that what goes into our products is as important as how
our product performs, which is why we focus on
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Clean
World
Taking climate action
and reducing plastic and
other waste
FY22 achievement highlights
Launched products with reduced or alternative packaging,
including Glad Cling’N Seal 50% Plant-Based Food Wrap
made from sugarcane resin and Burt’s Bees Rescue Lip Balm,
in a hybrid tube made of 50% post-consumer recycled and
plant-based plastic.
As part of ongoing Glad Recyclops partnerships to expand
recycling to more municipalities, developed unique color-coded
bags for Recyclops customers to place at their curbs, making it easier
to identify what’s inside.
Added eight new sites meeting Clorox’s zero-waste-to-landfill
status, including four U.S. Kingsford plants that collaborated to
reach the goal toget
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
IGNITE progress snapshot*
GOAL/TARGET PERFORMANCE PROGRESS**
Plastic and Other Waste
50% combined reduction in virgin plastic and fiber
packaging by 2030, per case of product sold vs. 13% On track
2018 baseline5
100% recyclable, reusable or compostable
84% In progress
packaging by 20256
Double post-consumer recycled plastic in
Early stage In progress
packaging by 2030 (+50% by 2025) vs. 2018 baseline
• Plants: 76%
100% global facilities zero waste to landfill by 2030
On track
(plants by 2025)***, 7
• Facilities: 47%
Climate Stewardship
Achieved/
Achieve science-based targets by 2030 vs. a 2020 Scopes 1 and 2: 62%
ongoing
baseline:
• 50% scopes 1 and 2 target
• 25% scope 3 target for purchased goods and
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Goal: Achieve science-based targets by 2030** 2020 emissions
Our ambition
Reduce absolute scope 1 and 2 GHG emissions by 50% baseline
%
93
to net zero Reduce absolute scope 3 GHG emissions from purchased
goods and services and use of sold products by 25% Scope 3
Largely outside
Including 2030 science-based Goal: Achieve net-zero emissions by 2050** direct control 7%
targets for scope 1, 2 and 3 emissions
Follow SBTi net-zero guidance for emissions reductions, Scope 1 and 2
to accelerate progress* carbon removals and restricted use of carbon offsets Direct control
2019 End of 2023 Medium term: by 2030 Long term: by 2050
SBT – scope 3 abatement levers: Net zero – scope 1 and 2 abatement levers:
Committed
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Laying the groundwork for
climate action
160,000
MT CO2 emissions per
Addressing climate change is a collective effort that requires all of us to act. Clorox is
making steady progress toward commitments to reduce emissions by our company year to be reduced
and across our value chain. with addition of a
second VPPA* Equivalent
Now that our IGNITE strategy goals to reduce carbon emissions by 2030 were approved to amount of
last year by the Science Based Targets initiative and we have committed to achieve net-zero electricity needed
emissions by 2050, it’s time for action.
to power
A critical way we’re driving a transition to a more sustainable energy system is through renewable 31,000
electricity. After m
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Addressing global plastic
waste through collaboration
and innovation
As a company whose products can be found in about nine out of 10 U.S.
households, we understand our responsibility to be good stewards of the
limited resources available to us on this planet. Achieving our ambitious waste
reduction goals will require an unprecedented level of industry collaboration
and discovery to identify solutions.
In fiscal year 2022, we continued this work at the enterprise and business unit level,
led by our Sustainability Center, a group of cross-functional leaders overseen by
our head of sustainability. We also continued to join forces with peers
as a signatory to the Ellen MacArthur Foundation’s New Plastics
E
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Exploring circular economy
business models
Another recycling barrier involves small-format packaging. To address this size
constraint affecting much of the Burt’s Bees portfolio, in fiscal year 2022 the
brand joined forces with The Sustainability Consortium to form a new coalition. As part of our New Plastics Economy Global
As part of this work, we’re assessing the recyclability of packaging at our own Commitment, we pledged to pilot new
ways to advance the circular economy by
facilities and contributing to a study to determine whether it is
enabling consumers to refill and reuse
economically viable for recycling companies to upgrade
primary packaging.
their facilities to capture small-format materials.
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Thriving
Communities
Investing in our people and
communities to contribute
to a more equitable world
FY22 achievement highlights
Advanced responsible sourcing through multistakeholder engagement:
Joined Guidehouse’s Supplier Leadership on Climate Transition
consortium with peers to engage our priority suppliers in capability
building to measure emissions and set science-based targets.
Established a formal grievance monitoring system with Earthworm
Foundation to advance human rights in our palm supply chains, and
joined Action for Sustainable Derivatives, a collaborative initiative
driven by palm derivative users to transform their supply chains by
increasing transparency, monitoring risks, engaging the
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
IGNITE progress snapshot*
GOAL/TARGET PERFORMANCE PROGRESS**
Employees
Ensure pay equity across gender globally and races/
Confirmed in FY22 Achieved/ongoing
ethnicities in the U.S.10
Commitment to establishing targets
Achieve gender and race/ethnicity representation target11 In progress
in FY23
Achieve inclusion index goals: Parity across total company • Women (global): 78% Achieved/ongoing
(76%12 in FY22) vs. women and people of color***, 12 • POC (U.S.): 72% On track
Set targets related to manager capabilities and
Evaluating potential targets In progress
workforce experience
82% $182M
employee engagement, in in spending with
line with the 50th percentile diverse suppliers14
of Fortune 500 companies12
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Investing in our people and culture
An emphasis on employee well-being is critical to our efforts to drive growth and deliver on our
corporate purpose. Like many other companies, we experienced elevated turnover in fiscal
year 2022. To retain top talent, we regularly assess employee sentiment and retention risk
as well as develop and execute related action plans.
Prioritizing career growth and leadership development is central to our approach. Our
investments include a suite of educational resources for people managers to help
them become more effective coaches and better leaders. We’ve also expanded
our summer internship, co-op and full-time equivalent rotational programs for
college hires. A robust ta
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Clorox took a number of steps to further advance inclusion
and diversity in fiscal year 2022. Key among them was creating
a new chief diversity and social impact officer role to lead our
I&D strategy development and execution beginning in fiscal
year 2023. This individual is serving as a member of the Clorox
Executive Committee and reporting to our chief executive
officer. CEC members also participated in training to equip
and inspire them to foster inclusive environments built on
mutual respect and trusting relationships. Building on the
foundational work of our employee resource groups that
have been dedicated to promoting a greater sense of
belonging for all teammates for more than a decade,
we estab
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Diverse representation across Clorox*, 11
Leadership & governance**
31% 46% 14% 43%
people of color board women board members people of color Clorox women Clorox
members (vs. 18% Fortune (vs. 27% Fortune 500 Executive Committee Executive Committee
500 average in 2020) average in 2020) members members
Across the company**
People of color - U.S.
42% 17% 32% 44% 44%
total employees senior executives (4) managers (387) nonproduction production
(2,648) employees (804) employees (1,445)
Women - global
36% 46% 47% 56% 19%
total employees (3,199) senior executives (11) managers (751) nonproduction production
employees (1,603) employees (831)
* See pages 68-69 for ESG metric endnotes, and visit our ESG Data Hub
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Giving back to our
Community impact
communities so
highlights*
all can thrive
$4M
Being a good global corporate citizen has
U.S. cause marketing
been part of our DNA for 109 years. It’s just
another way we can fulfill our purpose to
champion people to be well and thrive
every single day. $5M
Advancing environmental justice Foundation and corporate
As an extension of that vision, The Clorox community cash grants
Company Foundation coalesced around a
signature theme of health security, based on the
belief that health and wellness is a basic human right.
$80M
The foundation is addressing this signature theme through a focus on 13
programs in three areas: 1) community wellness, 2) disease prevention
U.S. co
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Strong
A
Governance
Adhering to strong corporate
governance practices to enhance
risk management and deliver
long-term value to stakeholders
FY22 achievement highlights
Further enhanced board and committee oversight of ESG
matters through benchmarking and increased connectivity
across committees on ESG issues; directors engaged in
“deep dive” educational sessions with external experts and
stakeholders on ESG and other emerging topics.
As part of ongoing commitment to board refreshment and
diverse board composition, added two women directors,
including one person of color, to the Clorox board of directors.
36
CLOROX | 2022 INTEGRATED REPORTCEO IGNITE COMPANY GROWTH & HEALTHY CLEAN THRIVING STRONG FINANCI
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
IGNITE progress snapshot*
GOAL/TARGET PERFORMANCE PROGRESS**
Governance
Executives’ individual performance assessments
Executive compensation awards tied to elements of
and short-term incentive awards are tied to ESG Achieved/
our ESG goals for members of the Clorox Executive
goal achievement. Additional detail disclosed in the ongoing
Committee, including for the CEO.
company’s proxy statement.
2/3 100%
people of color independent directors
committee chairs** (excluding CEO)**
5 years 46%
average board tenure** women board
members**
* See pages 53-54 for a comprehensive update on our IGNITE ESG goals and pages 68-69 for ESG metric endnotes; visit our ESG Data Hub to view progress over time.
** As of Ju
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Building on a foundation of strong
corporate governance
With strong, diverse skill sets, our board of directors is committed to providing meaningful oversight
to the company in the development and execution of its strategy.
Our governance practices extend to transparency in our disclosures, robust oversight
mechanisms and board visibility into our corporate culture as well as a commitment to hearing
perspectives from our many stakeholders. The following are some of the measures in place:
Regular board refreshment, with average tenure of slightly less than five years. Focus on
seeking diverse skills that support the company’s strategy, which results in a diverse board with
a mix of longer-tenured and new
Keyword: governance
governance processes, including launch of a central repository for our key ESG
disclosures, resources and reporting approach, public disclosure of EEO-1 data
and reporting to show the levels of diversity within our organization, and
public disclosure in alignment with stakeholder-preferred reporting
frameworks (see pages 55-67).
Through active engagement, our directors stayed informed of the
issues that are most important to our investors.
38
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
Clorox Board of Directors
Matthew J. Shattock Amy Banse Richard H. Carmona, Juli
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Clorox Executive Committee*
Linda Rendle Stacey Grier Kevin Jacobsen Kirsten Marriner Eric Reynolds
Chief Executive Officer Executive Vice President Executive Vice President Executive Vice President Executive Vice President and
and Chief Growth and Chief Financial Officer and Chief People and Chief Operating Officer
and Strategy Officer Corporate Affairs Officer
Chau Banks Diego Barral Shanique Bonelli-Moore** Rebecca Dunphey Matt Gregory
Senior Vice President and Senior Vice President Vice President and Chief Diversity Senior Vice President and Senior Vice President and
Chief Information and and General Manager – and Social Impact Officer General Manager – Specialty Chief Customer Officer
Enterprise An
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Condensed Consolidated Statement of Earnings
Years ended June 30
Dollars in millions, except per share data 2022 2021 2020
Net sales $ 7,107 $ 7,341 $ 6,721
Cost of products sold 4,562 4,142 3,658
Gross profit 2,545 3,199 3,063
Selling and administrative expenses 954 1,004 969
Advertising costs 709 790 675
Research and development costs 132 149 145
Goodwill, trademark and other asset impairments — 329 —
Interest expense 106 99 99
Other (income) expense, net 37 (72) (10)
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 a
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Condensed Consolidated Statements of
Comprehensive Income
Years ended June 30
Dollars in millions 2022 2021 2020
Net earnings $ 471 $ 719 $ 939
Other comprehensive (loss) income:
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
42
CLOROX | 2022 INTEGRATED REPORTCEO IGNITE COMPANY G
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Condensed Consolidated Balance Sheets
As of June 30
Dollars in millions, except per share data 2022 2021
ASSETS
Current assets
Cash and cash equivalents $ 183 $ 319
Receivables, net 681 604
Inventories, net 755 752
Prepaid expenses and other current assets 106 154
Total current assets 1,725 1,829
Property, plant and equipment, net 1,334 1,302
Operating lease right-of-use assets 342 332
Goodwill 1,558 1,575
Trademarks, net 687 693
Other intangible assets, net 197 225
Other assets 315 378
Total assets $ 6,158 $ 6,334
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Notes and loans payable $ 237 $ —
Current maturities of long-term debt — 300
Current operating lease liabilities 78 81
Accounts payabl
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Condensed Consolidated Statement of Stockholders’ Equity
Common Stock Treasury Stock Accumulated
Other
Additional Comprehensive Total
Dollars in millions, Shares Paid-in Retained Shares Net (Loss) Noncontrolling Stockholders’
except per share data Amount (000) Capital Earnings Amount (000) Income interests Equity
Balance as of June 30, 2019 $ 159 158,741 $ 1,046 $ 3,150 $ (3,194) (33,055) $ (602) $ — $ 559
Cumulative effect of accounting changes1 — — — 22 — — — — 22
Net earnings — — — 939 — — — — 939
Other comprehensive (loss) income — — — — — — (38) — (38)
Dividends to Clorox stockholders
— — — (544) — — — — (544)
($4.29 per share declared)
Stock-based compensation — — 50 — — — — — 50
Other employee st
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Condensed Consolidated Statement of Cash Flows
Years ended June 30
2022 2021 2020
Dollars in millions
Operating activities:
Net earnings $ 471 $ 719 $ 939
Adjustments to reconcile net earnings to net cash provided by operations:
Depreciation and amortization 224 211 180
Stock-based compensation 52 50 50
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
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Years ended June 30
2022 2021 2020
Dollars in millions
Financing activities:
Notes and loans payable, net 237 — (396)
Long-term debt repayments (1,405) — —
Long-term debt borrowings, net of issuance costs paid 1,085 — 492
Treasury stock purchased (25) (905) (248)
Cash dividends paid to Clorox stockholders (571) (558) (533)
Cash dividends paid to noncontrolling interests (15) (31) —
Issuance of common stock for employee stock plans and other 5 103 162
Net cash used for financing activities (689) (1,391) (523)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (6) 12 (5)
Net increase (decrease) in cash, cash equivalents and restricted cash (138) (555) 766
Cash, cash equivalents
Keyword: governance
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 Board Company Accounting Oversight Board (United States), the effectiveness of
(United States), the consolidated balance sheets of The The Clorox Company’s internal control over financial reporting as of June 30,
Clorox Company at June 30, 2022 and 2021, the related 2022, based on criteria established in Internal Control - Integrated Framework
consolidated statements of
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Auditor statement
Independent Accountants’ Review Report
To the Management of The Clorox Company
We have reviewed The Clorox Company’s (“Clorox” or We are required to be independent of Clorox and to meet our other ethical
the “Company”) accompanying Schedule of Selected responsibilities in accordance with the relevant ethical requirements related to
Quantitative Performance Indicators included in our review engagement. Additionally, we have complied with the other ethical
Appendix A (the “Subject Matter”) and as presented in requirements set forth in the Code of Professional Conduct and applied
the Company’s Annual Report identified by the the Statements on Quality Control Standards established by the A
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Performance notes
Appendix A: The Clorox Company Schedule of Selected Quantitative Performance Indicators
Indicator Name Scope1 Unit Value19 Criteria
Scope 1 greenhouse gas (GHG) emissions2, 3, 14 Global Metric tons 72,784 The World Resources Institute/ World Business Council for Sustainable
carbon dioxide Development (WRI/WBCSD) Greenhouse Gas (GHG) Protocol
Scope 2 GHG emissions, location-based-method (LBM) 3, 4, 14 equivalent 166,307 Corporate Standard
(tCOe)
2
Scope 2 GHG emissions, market-based-method (MBM)3, 4, 5, 14 26,442 WRI/WBCSD GHG Protocol Corporate Standard, GHG Protocol
Scope 2 Guidance
Combined Scope 1 + Scope 2 MBM emissions2, 3, 4, 5, 14 99,226
Change in Scope 1 GHG emissions from 2020
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Note: Non-financial information is subject to measurement uncertainties resulting from limitations inherent in the nature and
the methods used for determining such data. The selection of different but acceptable measurement techniques can result
in materially different measurements. The precision of different measurement techniques may also vary.
1. For locations where Clorox maintains operational control.
2. Scope 1 emissions include direct energy used by Clorox in its operations, categorized by stationary combustion, mobile
combustion, refrigerant use, direct volatile organic compound (VOC) loss and direct wood pyrolysis. The last two sources
relate mainly to Clorox’s Kingsford business unit, and wood
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
To achieve our business goals, we need to leverage
How we
the unique foundational attributes of our company, 2 BUSINESS MODEL
manage external factors and optimize our relationships
create Vision: To be exceptional Purpose: We champion Objective: Maximize
with important partners. We’re successful when
innovators who earn people to be well and economic profit and deliver
we create value for our company, employees, people’s enduring loyalty. thrive every single day purpose-driven growth.
value
consumers, retail and nonretail customers, investors,
communities, suppliers and other business partners, IGNITE Strategy: Functions: How we conduct
• Innovate Experiences • Finance our business:
the environment and
Keyword: governance
- Strong Governance • Product Supply • Best-in-class delivery
Employees Professional development and training
Our Values: • Research & of end-to-end supply
Investments, including five-year, Supplier contracts and investments
• Do the right thing Development chain solutions
$500 million strategic investment in Customer support and engagement
• Put people at the center • Sales • U.S. focus with presence
digital capabilities and productivity Industry collaborations
• Play to win Segments: in key global markets
enhancements Virgin raw materials
• Health and Wellness • Enterprisewide strategy
Capital expenditures (including renewable resources)
• Household integrating ESG priorities
Raw material costs and other expenses Reused or recycled materials
• Lifestyle • S
Keyword: governance
Communities, Strong Governance and functions
(ESG pillars)
Financial Innovation Operations Workforce Business Partners Environment Internal External
* Based on principles of integrated reporting, inputs refers to what goes into the development of an organization’s key products and services, including
byproducts and waste (such as emissions) that need to be discussed depending on their materiality.
** Based on principles of integrated reporting, outputs refers to what’s generated by a company’s operations, including both positive and negative factors.
We focus on material issues and evaluate the opportunities and risks of our actions.
*** Outcomes are the internal and external consequences (positive and negative) for the capitals (financial, manufactured, intellectual, h
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
ESG materiality
ESG is strategically important to our business because it Clorox’s overall ESG issue
creates value for all our stakeholders and is essential to
prioritization
delivering on our purpose and values. We’re committed
to focusing on ESG topics that are most important
to our business and our stakeholders, so throughout
fiscal year 2022 we engaged a third party in an ongoing
stakeholder listening approach to ensure we were
directing resources effectively, given how quickly the
ESG space and stakeholder expectations are evolving.
This approach was grounded in the foundation we
built through our formal materiality assessment in
fiscal year 2021, an abidged materiality assessment
when we developed
Keyword: governance
• Ethical and transparent governance and business practices
• GHG emissions
• Employee diversity, equity and inclusion
• Employee health safety and well-being
• Public health
52
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
ESG reporting
FY22 IGNITE ESG progress table: Healthy Lives
Progress
IGNITE ESG goal/target
(metrics are global and as of June 30, 2022, unless stated otherwise)
Employee well-being: Maintain our recordable incident rate of <1.0 with a comprehensive safety Achieved <1.0 RIR every year since goal was announced. In FY22, RIR
management effort striving for an injury-free work
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
FY22 IGNITE ESG progress table: Clean World (continued)
Progress
IGNITE ESG goal/target
(metrics are global and as of Dec. 31, 2021, unless stated otherwise)
Plastic and other waste: 100% global facilities zero-waste-to-landfill by 2030 (plants 47% of facilities, 76% of plants are ZWtL, as of June 30, 2022
by 2025)7
Climate: Achieve science-based targets to reduce greenhouse gas emissions by 2030 vs. a • 62% reduction in scope 1 and 2 emissions, achieving our target
2020 baseline: • Created internal roadmap and published climate action plan for net-zero
• 50% scope 1 and 2 (operations) reduction target and science-based targets; plan includes working with key business units
• 25% scope 3 (purchased good
Keyword: governance
FY22 IGNITE ESG progress table: Strong Governance
Progress
IGNITE ESG goal/target
(metrics are global and as of June 30, 2022, unless stated otherwise)
Executive compensation awards tied to elements of our ESG goals for members of the Clorox Executives’ individual performance assessments and short term incentive
Executive Committee, including for the CEO awards are tied to ESG goal achievement. Additional detail disclosed in the
company’s proxy statement
54
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
ESG reporting
As part of our commitment to transparency, we disclose our ESG progress process to select
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
SASB: Household and Personal Products Standard17 (continued)
Topic SASB accounting metric SASB reference code Location or response*
Activity Metric Number of manufacturing facilities CG-HP-000.B 34 as of June 30, 2022.16
Energy Management Total energy consumed, percentage renewable CG-BF-130a.1 730,098 global absolute megawatt hours
in CY21
Achieved goal for 100% renewable electricity in the
U.S. and Canada beginning in January 2021, four years
ahead of the original target year. A 70-megawatt
virtual power purchase agreement that came into
effect in January 2021 supported about half of this
goal; other market purchases of renewable energy
credits support the remaining half. ✪ 9
See Clean World section:
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
ESG reporting
TCFD framework
Core element TCFD disclosure The Clorox Company disclosure
Governance Board oversight of The board of directors’ Nominating, Governance and Corporate Responsibility Committee oversees Clorox’s environmental
climate-related risks matters and compliance and is updated at least quarterly on ESG priorities, including those related to climate change. The
and opportunities committee’s responsibilities include reviewing, monitoring and engaging with management on the development of climate
change and environmental policies, programs, goals and progress, and regularly reviewing such matters with the full board.
Clorox’s Enterprise Risk Management Steering Committee, which is compose
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
TCFD framework (continued)
Core element TCFD disclosure The Clorox Company disclosure
Strategy (cont.) Climate-related risks • Transitional risks (medium term) and opportunities [(long term, (6-10 years)] associated with shifts in market preferences
and opportunities as consumers seek products and services from companies that are proactively working to reduce climate change-
(cont.) related impacts and offering less carbon-intensive products. Risks include that the company’s innovation cycle may not
keep up with consumers’ growing demand for products with lower environmental footprints; that the consumer value
equation may change with new necessary consumption models (e.g., refills and concentrates may
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
TCFD framework (continued)
Core element TCFD disclosure The Clorox Company disclosure
Strategy (cont.) Impact of climate risks Climate risks and opportunities that might impact our business strategy and financial planning include:
and opportunities on • Consumer demand for products with lower environmental footprints growing faster than we have allowed for in our innovation
businesses, strategy investment planning. This is both an opportunity for greater brand value and sales from our lower environmental impact
and financial planning products such as our increasingly concentrated bleach or refillable sprays cartridges, developed through our ongoing
sustainability-focused investment in R&D, and a risk if
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
TCFD framework (continued)
Core element TCFD disclosure The Clorox Company disclosure
Risk Management Process for identifying Clorox identifies opportunities and potential physical, regulatory, reputational, changing consumer trends/awareness and any
and managing other risk factors associated with climate change, GHG emissions, energy consumption and water consumption. This is done
climate risks at the corporate level with the cross-functional ESG and sustainability team and cascaded to various internal stakeholders,
business and functional units as appropriate.
Further, the Clorox ERM Steering Committee, consisting of senior leaders across the organization, was established to provide a
sustainable fram
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
TCFD framework (continued)
Core element TCFD disclosure The Clorox Company disclosure
Metrics and Targets Metrics used to We track, manage and disclose our performance in a number of areas related to climate risk, including GHG emissions, GHG
address climate risks emissions intensity, energy consumption, energy intensity, water withdrawn, water intensity and water withdrawn from areas of
and opportunities high baseline water stress.
GHG emissions were estimated in accordance with The Greenhouse Gas Protocol: A Corporate Accounting and Reporting
Standard (Revised Edition).
See CDP Climate Change Report sections C4-C9; Clorox website: Taking Climate Action
Scope 1, 2 and 3 GHG Scope 1: 72,784 metric tons
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
TCFD framework (continued)
Core element TCFD disclosure The Clorox Company disclosure
Metrics and Targets Energy consumption9 730,098 megawatt hours for CY21, 762,539 megawatt hours for CY20 and 666,112 megawatt hours for CY19.
(cont.) See Clorox website: Clean World — Energy
Energy targets9 100% electricity from renewable energy in U.S. and Canada in 2021. ✪
• Renewable energy goal first achieved in January 2021. Maintained to date and expected to be maintained going forward.
Drive continued energy efficiency improvements that achieve or exceed our 2018 baseline levels.
• 13% less energy use per case of product sold in CY21 vs. CY18 base year.
See Clean World section, pages 24-29; IGNITE ESG progress t
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
ESG reporting
FY 2022 UNGC communication on progress
Category Principle Clorox policies and FY22 performance
Human Rights Principle 1: Businesses should The Clorox Code of Conduct documents the ethical and legal standards of behavior and business practices that are
support and respect the required of all our directors, executives and employees around the world. We require all board members and employees
protection of internationally to complete annual training and certify compliance with our code.
proclaimed human rights; and Business partners are expected to comply with our Business Partner Code of Conduct and our Responsible and
Sustainable Sourcing Policy and Standards. Both documents detail our expe
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
FY 2022 UNGC communication on progress (continued)
Category Principle Clorox policies and FY22 performance
Environment Principle 7: Businesses should Environmental goals are embedded in our IGNITE strategy. These include achieving science-based targets to reduce
support a precautionary greenhouse gas emissions in our operations and across our value chain by 2030, sourcing 100% renewable electricity
approach to environmental for our U.S. and Canada operations — achieved in 2021, achieving net-zero GHG emissions by 2050, and achieving
challenges; targets to reduce plastic and other waste by 2030 ✪ 8, 9. These efforts are in conjunction with long-standing efforts to
reduce our GHG, energy, water and waste
Keyword: governance
See Clorox website: Purpose and Values, Corporate Governance Guidelines, Policies and Practices
64
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
ESG reporting
United Nations Sustainable Development Goals
Targets and actions FY22 outcomes and impacts
Goal 3 — Good Health and Well-Being — Ensure Healthy Lives and Promote Well-Being for All at All Ages
Good health and well-being is embedded in our purpose to champion people to be well • Number of Clorox wellness-related product categories in U.S. homes
and thrive every single day. We advance this purpose through the strength of our brand decreased by 0.2 million, or 0.
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
United Nations Sustainable Development Goals (continued)
Targets and actions FY22 outcomes and impacts
Goal 10 — Reduced Inequalities — Reduce Inequality Within and Among Countries
Clorox values and promotes equal employment opportunity and inclusion and does not tolerate Representation11:
discrimination, intimidation or harassment among employees or business partners, consistent • Led by a woman, Linda Rendle, who assumed the role of CEO in 2020.
with the United Nations Global Compact Principles on Human Rights on page 63. These
• Added two women directors, including one person of color. Women
expectations are outlined in our Codes of Conduct and other policies and must be adhered to
represented 46% an