Review of the Clorox Integrated Report

Clorox has issued its latest integrated report. Here’s a quick overview using my evolving format to try to compare the (small but compelling) variety of reports now being issued in the U.S.

This report is front and center on the company’s home page, its sustainability sections and is what you get when you click on the link for its annual report in the investor section of the website.

Title Clorox Integrated Annual Report 2015
Theme Good Growth: Growing Profitably and Responsibly
Report Type Executive summary
Contents Scorecard, Recognitions, 2020 Strategy, Financial, GRI
Number of Pages 28
Value Creation Narrative + Graphic + Metrics
Value Distribution Narrative
Stakeholders Narrative
Standards GAAP, GRI
Assurance E&Y

 

The highest level summary graphic connects brand and long-term sustainable value creation:

 

 

The path to this goal is examined in depth through four key strategies that include:

  1. Engage our people
  2. Increase investments behind our brands
  3. Expand our brands into new categories and sales channels and in existing countries
  4. Cut waste in our work, products and supply chain to fuel growth

Here’s an example of the opening of the people section:

The report includes a multi-page scorecard organized into five sections:

  1. Performance
  2. People
  3. Products
  4. Planet
  5. Community

Here’s an excerpt of the people section of the scorecard:

 

The Capitals

One of the core concepts of integrated reporting is the inclusion of information about the six key categories of capital. The Clorox report does not use this vocabulary but does directly address most of the capitals with mostly single-year metrics:

Coverage of the Capitals None Narrative Single Year

Metrics

Multi-Year

Metrics

Financial Capital X
Fixed Capital X
Digital Capital X
Human Capital X
Relationship Capital X
Natural Capital X

 

As with most companies, digital capital (called intellectual capital in the IIRC framework) is not examined on a stand-alone basis. However, the highlights for the year all focus on improvements in this category as can be seen in these excerpts:

  • 200,000 improvements in our our Product Supply Organization alone
  • Changes to both the formula and manufacturing process for Kingsford® charcoal
  • Volume growth through better management of our logistics network,
  • Fairfield, California, plant achieved zero waste-to-landfill status
  • Implementation of a pilot program for “express” in-store product display customization reduced execution time from as long as five months to eight weeks
  • Redesigned financial forecast process is streamlining the process…saving almost 80,000 hours of work.

The report is available as a downloadable .pdf. The on-line version is richer, presented through a scrollable story line including photos and graphics.

Clorox is one of ten companies in the comparative analysis published by Smarter-Companies:

DOWNLOAD THE U.S. INTEGRATED REPORTING JOURNEY