Ecolab sells cleaning products and services to restaurants, hotels, hospitals, food and beverage producers and other businesses. The company has a particular focus on energy and water efficiency. Ecolab has developed a range of products and services that help to reduce, and in some cases even eliminate, the use of water in a wide range of industrial applications. In turn, this helps to lower costs through a reduction of energy and water impacts.
Topic: Hazardous ChemicalsTopic: Hazardous Chemicals
WHEB’s Objective: Limiting material negative social or environmental impacts
Company Objective: For Ecolab to clarify a time-bound phase-out plan of substances of very high concern (SVHC) and increase revenue from safer alternatives.
Desired Outcome: Reduced environmental pollution and negative impacts to human and ecological health leading to reduced regulatory and reputational risk. Improved competitive advantage.
Background: The Investor Initiative on Hazardous Chemicals (IIHC), led by ChemSec and backed by over $18 trillion in AUM, engages with major chemicals producing companies to mitigate these risks. Ecolab, a global leader in water and hygiene solutions, has made strong progress over recent years and was ranked 4th in ChemSec’s 2024 ChemScore.
Activity: WHEB co-leads the Ecolab investor group. We arranged and chaired a company call and drafted a letter setting out the groups’ expectations and formalised engagement objectives:
- Transparency: Disclose global revenue and volumes of Substances of Very High Concern (SVHCs), aligning with CSRD and E2 Pollution standards.
- PFAS Evaluation: Provide an update on PFAS-related risks in the supply chain.
- Revenue Shift: Set a 2030 target to increase revenue from safer alternatives and publish a supporting strategy.
Outcomes
M2 - company shares or agrees to disclose information on the issue
These interactions represents an early stage in the current phase of dialogue. Ecolab is as yet to provide material updates against the objectives. It has however, reaffirmed its ambition to lead in hazardous chemical management and reach the top ChemScore ranking.
Ecolab also committed to improving near-term disclosure by publishing its Chemical Footprint Benchmark in 2025. We believe the company’s prioritisation of this issue reflects its material importance and are reassured by its ambition and progress to date.A follow-up to review progress is expected later in 2025.