OUR COMMITMENT TO RESPONSIBILITY & SUSTAINABILITY

We began in 1846 as a baking soda business. Today, we are a top-tier Consumer Products Company with a large portfolio of brands that consumers love, especially the ARM & HAMMER® brand.

We have a rich heritage of commitment to people and have long regarded ourselves as a friend of the environment. Over 100 years ago, we began using recycled materials in our cartons. We were the first U.S. manufacturer to remove phosphates from laundry detergent. We were the first and only corporate sponsor of the inaugural Earth Day in 1970. Today, 100% of our direct operations’ global electricity needs are offset with renewable sources. We are reducing our environmental footprint by increasing renewable energy usage at our facilities, reducing water usage and greenhouse gas (GHG) emissions, reducing solid waste to landfills, developing environmentally responsible packaging and improving our suppliers’ environmental practices.

Church & Dwighters are goal-oriented people. To create a compass for our sustainability program, we have established aggressive goals for ourselves. Our environmental, social and governance (ESG) efforts are directed towards improving the sustainability profile of our operations and products, positively impacting our employees and the communities in which we operate and minimizing the environmental impact of our expanding global operations.

Our top environmental goal is to achieve carbon neutrality for global operations owned and controlled by us by the end of 2025. We have already offset more than 70% of our carbon dioxide emissions. To achieve carbon neutrality, we partnered with the Arbor Day Foundation in 2016, and over the years have grown to be its largest forestry carbon partner. Through this partnership we’ve supported the planting and growing of millions of trees in the Mississippi River Valley and the protection of existing forests in Canada and Peru. These trees will remove carbon dioxide from the atmosphere and emit life-sustaining oxygen. In 2021, we established new science-based targets and submitted our application to the Science-Based Targets Initiative. These new targets take into account the level of carbon reduction needed to meet the goals set forth in the Paris Agreement. Our absolute GHG emissions in 2021 (Scopes 1 + 2 and targeted Scope 3) decreased approximately 4% versus 2020.

We are continuing to pursue our strategy to ensure that our plastic packaging has minimal impact on the environment by eliminating or reducing plastic from our packaging wherever it is practical, including seeking non-plastic alternatives and reducing plastic weight where possible, increasing plastic recyclability and circularity through plastic component simplification and consumer education and by increasing the amount of Post-Consumer Recycled (PCR) plastic in our packaging. Our new concentrated liquid laundry detergent formulas, launching in 2022, will mean that less liquid detergent (and therefore less plastic packaging) is required to deliver the same number of washloads. This change alone is projected to reduce the amount of High-Density Polyethylene plastic in our bottle portfolio by well over 3,000 Tons in 2022. Our goal is to increase PCR plastic to a minimum of 25% average across all global plastic packaging by end of 2025. Currently, 18.4% of our plastic packaging is PCR. Building on our progress, we are continuing the foundational work necessary to disclose a meaningful virgin plastic packaging reduction goal in next year’s Sustainability Report.

Since early 2020, the world has faced the challenge of the COVID-19 pandemic. With more than 5,100 employees at over 30 sites around the world, the safety and wellness of our employees have been and continue to be our top priorities. Recognizing that the mental health of our employees is as important as their physical well-being, we launched the Employee Assistance Program (EAP) to provide free professional support to our employees who may be dealing with relationship, emotional, substance abuse or other issues. In 2021, we also launched the Church & Dwight Employee Relief Fund (ERF) to provide financial assistance to those Church & Dwighters who have experienced financial hardship due to the COVID-19 pandemic. We continue to work through this challenging chapter, and I remain confident we will emerge as a much stronger and more sustainable company.

We embrace the diversity of our employees and believe that a diverse and inclusive workforce fosters innovation and cultivates an environment filled with unique perspectives, talents and experiences. Diversity is a strength and makes us better. We are dedicated to maintaining a culture of belonging at Church & Dwight, and have addressed in this Report our goals, programs and commitments regarding Diversity, Equity & Inclusion (DEI).

We take great pride in fostering an enduring culture of “doing well by doing good.” By focusing on making meaningful contributions to society each of us can create a stronger, more resilient company while contributing to a better world. In 2021, we matched, dollar for dollar, donations our employees made to the Church & Dwight Employee Giving Fund (EGF), an employee-run giving program that primarily supports charitable organizations where our employees work and live. Recently, given the scale of the humanitarian crisis in and around Ukraine, the EGF expanded its reach to collect funds from employees globally for the International Red Cross, with Church & Dwight matching employee contributions. The EGF contributed $1.2 million to 225 deserving organizations in a variety of areas in 2021, and it has contributed over $15 million to charitable organizations in the U.S. to date. In addition, six organizations in the DEI and Environmental Sustainability space were chosen in 2021 by the Church & Dwight Philanthropic Foundation (the “Foundation”) to receive grants totaling $1 million in the aggregate. Established in 2020, the Foundation is administered by C&D employees and focused on helping to create equitable and inclusive opportunities and advancing environmental preservation.

While we have made significant progress, we missed some of our goals. In 2021, we achieved a 4% reduction in global process water and/or wastewater normalized to production against our overall annual goal of 10%. Normalized total GHG emissions per weight of product shipped and normalized energy use were reduced in 2021 by 3% and 4%, respectively, each falling short of our 10% reduction target due to erratic production related to the COVID pandemic. We made positive steps in 2021 with regard to DEI, but we are not satisfied with our representation numbers.

We have a clear roadmap to meet our Sustainability and related ESG goals. For our efforts in 2021, we earned public recognition, including being listed as one of Forbes America’s Top Midsize Employers, Forbes Green Growth 50, Newsweek’s Most Sustainable Companies, Newsweek’s America’s Most Trusted Companies, the EPA’s Green Power Partnership Top 100, the Wall Street Journal’s Top 250 Best Run Companies, and in the FTSE4Good Index Series.

Please read this Report to see the progress we have made over the past year to make Church & Dwight a better company.

Matthew T. Farrell
President and Chief Executive Officer