Environment
Environment
Earning trust starts with how we select and source ingredients that people feel good about using.
We are working to sustainably source the key ingredients we use in our products, helping to protect the environment, biodiversity and ecosystems from which we source them and to support the communities who farm and harvest them.
We are focussed on continuously improving the traceability and transparency of the materials we use. We use leading sustainable sourcing certifications where available, including the Roundtable for Sustainable Sourcing of Palm Oil (RSPO) Mass Balance certification for palm oil derivatives, and the Forestry Stewardship Council / Programme for the Endorsement of Forest Certification (FSC/PEFC) for sustainably sourced paper and board. We also seek to set clear standards for how we source and certify other key materials where there is not yet an established industry-wide standard.
We strive to only conduct business with third parties that maintain good ethical standards and operate responsibly. Our Working with Responsible Third Parties position outlines the expectations that we have of the third parties we work with in order to promote the highest standards of professional integrity and trust.
Working collaboratively with suppliers and partners is critical to making progress on sustainable sourcing. We’re a member of Action for Sustainable Derivatives (ASD), a collaborative initiative that brings together companies in the cosmetics, home and personal care, and oleochemicals industries to collectively tackle supply chain issues around palm oil and palm kernel oil derivatives.
Haleon is a member of Action for Sustainable Derivatives (ASD), a collaborative initiative that brings together companies in the cosmetics, home, personal care, and oleochemicals industries to collectively tackle supply chain issues regarding palm oil and palm kernel oil derivatives. Our membership is supporting our aim to improve traceability and transparency in our palm oil derivatives supply chain, while also supporting on-the-ground programmes.
This has helped us to improve the transparency of our palm oil supply chain by mapping 98% of volumes to refineries, 97% to mills and 76%1 to plantations in 2022. We have also worked with ASD to develop a robust process to validate deforestation and/or conversion free (DCF) volumes of palm oil derivatives and reported 54% of our 2022 volumes as DCF1.
We are also supporting two projects as part of the ASD's Impact Fund: the Kaleka Mosaik Initiative and the ASD Respect in Palm programme, both in Indonesia. The Kaleka Mosaik Initiative aims to empower local communities through economic development and has trained 610 farmers in 2023 to help gain RSPO certification. The ASD Respect in Palm programme aims to build equitable relationships and attitudes among women and men in global supply chains.
We source most of the natural mint used in our products from growers in India and the United States. In North America, we’re members of the Mint Industry Research Council (MIRC) who are working together with growers and others in the industry to help ensure mint crops are high-quality, resilient and sustainable.
India is responsible for around 80% of the world’s mint production, with the majority of mint grown by smallholder farmers on land that’s usually under an acre. Mint is a valuable crop in the annual cycle. However, in many parts of the region farmers are struggling with poverty, together with rising production costs and limited access to services.
In 2022, we undertook a Human Rights Impact Assessment of the India mint supply chain which involved interviews and engagement with over 600 rightsholders. The research was undertaken with the support and collaboration of four tier 1 suppliers and two tier 2 suppliers. The mint supply chain is complex, with many intermediaries between Haleon and the mint farmers, so following the assessment, we have been working closely with our suppliers to develop action plans to seek to address some of the root causes of issues identified.
These action plans support our Healthy Mint Supply Chain strategy, which aims to uphold health and safety standards in mint farming, improve farmers’ livelihoods, support health and gender empowerment in mint growing communities and reduce the environmental impact of mint production.
1 Scope includes Haleon’s globally managed spend on key materials which are agricultural, forestry or marine derived. Globally managed spend covers the majority of our internal spend and expands across some of our third-party manufacturing network.
2 The 2023 reporting period = 1 July 2022 – 30 June 2023.
3 Relates to percentages of materials bought with Haleon’s globally managed spend only.
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