News

Oct 14, 2024

Clorox says 2023 cyberattack hurt progress on 2030 plastic, waste reduction goals | Packaging Dive

In its latest annual report the company also estimated possible costs from procuring PCR and complying with EPR policies. The Clorox Co. says it is reassessing some sustainability goals, in part

In its latest annual report the company also estimated possible costs from procuring PCR and complying with EPR policies.

The Clorox Co. says it is reassessing some sustainability goals, in part blaming disruptions following a major August 2023 cyberattack, according to its latest annual report.

Asked about which plastic and waste reduction efforts the cyberattack disrupted and how, a spokesperson simply responded that the cyberattack “caused significant operational disruption to our entire business,” and that the company has “since restored operations, fully rebuilt supply and distribution, and recovered the vast majority of the market share we lost from the cyberattack.” In 2023, the incident cost Clorox an estimated $49 million.

In the new report, Clorox named “controllable as well as dynamic factors” impacting its ability to achieve 2030 goals. Those factors include “access to high-quality, post-consumer recycled plastic, limited recycling infrastructure and packaging technology, particularly for film and flexible materials that are not recyclable.”

Clorox’s brand and product portfolio, and ultimately packaging formats, are more diverse than its namesake cleaners imply. The lineup includes Fresh Step cat litter, Glad trash bags, Hidden Valley ranch dressing, Kingsford charcoal and Burt’s Bees skin care, among other products.

Clorox set packaging sustainability goals in 2019. It has stagnated in recent years on lowering its reliance on virgin materials and upping PCR in packaging.

Asked to clarify whether the company is considering changing or pushing out deadlines for its packaging sustainability goals, the spokesperson said in an email that “we’re proud of the progress we’ve made while recognizing there is more to do and that we must continually evolve alongside industry and the broader landscape.”

The company recently completed a formal ESG materiality assessment, according to the spokesperson.

“We are committed to aligning our goals and targets to ensure they reflect the latest industry developments, stakeholder expectations, and global sustainability challenges,” the spokesperson said. “While we re-assess our goals, we continue to integrate sustainability across our company with business units developing plans to enhance the sustainability of packaging for their product portfolios.”

Clorox estimated in the report that the financial impact to the company “to make substantial increases (around 50%) to our PCR content in plastic packaging,” when combined with its cost of procuring 100% Roundtable on Sustainable Palm Oil-certified palm oil (a separate sustainability goal), could total between $3.5 million to $7 million per year. Clorox declined to break out how much of that total is tied to PCR initiatives specifically.

The company shared an estimate on the annual cost impact from extended producer responsibility policies, projecting $2 million to $5 million “in the medium term” and potentially $15 million to $20 million “in the longer term if regulations are expanded to more markets.” Clorox said that, to mitigate risk, it’s focused on reducing its use of virgin plastics.

The report also highlighted newer product and packaging innovations. One example is Pine-Sol cleaner concentrates that reduce the amount of water shipped per dose and come in bottles made with at least 50% postconsumer recycled plastic. This is part of an ongoing push by Clorox for concentrated cleaners and refillable products.

The company says it uses life-cycle assessments to inform packaging design and balance “sustainability trade-offs” between different materials.