Henkel's deforestation exposure stems from its use of palm oil, soy, and pulp & paper, with palm oil standing out as particularly significant – Forest 500 scores the company 4/5 for both exposure and financial materiality on this commodity. The company has committed to zero net deforestation, but this target appears to have moved back over time and now sits at 2030. On traceability, over 20% of Henkel's palm oil is still not traceable to plantation level, the standard required under the EU Deforestation Regulation (EUDR), which comes into force for large companies by the end of this year.
Henkel's SLBs offer another indication into its wider sustainability performance. Two of the company’s three outstanding SLBs had 2025 observation dates, both referencing two targets: the Scope 1+2 emissions target was comfortably met, but the recycled plastics packaging target was missed, with Henkel achieving 28% against a 30% goal. Both bonds will now see coupon step-ups as a result.
Beyond its SLB targets, Henkel also missed its wider 2025 circularity goals. Taken together, the new issuance gives investors a timely engagement opportunity to assess the company’s overall sustainability performance.
