Clorox has “bold” plans for the next decade to reduce its negative environmental impact, CEO Benno Dorer told CNBC’s Jim Cramer on Friday.
“We think doing something good for the planet is also good for business,” Dorer said in a “Mad Money” interview. “With our new strategy, which leads us through 2025, we’re going to make a double-down effort on sustainability.”
So far, one manifestation of Clorox’s environmental commitment is its compostable cleaning wipes, which launched in the late second quarter, Dorer said.
Dorer said 65% of consumers wanted such a product, “and we’re excited about the initial reaction that we get from retailers.”
Disinfecting wipes is the “fastest growing business” in home care, Dorer said, and “we are the market leader and we’re nurturing it with innovation like this.”
Dorer said Clorox is intending to release more innovative products in the second half of next year.
Shares of Clorox closed slightly positive Friday, at $146.3, but are down 4.98% year-to-date. The company’s stock began falling from the mid-$160s in September and was hit again in early October, when management cut its earnings and sales estimates for the 2020 fiscal year.
At the time, Cramer recommended buying some shares of the company, with the guidance cuts serving as a “cleansing moment” and laying the groundwork for it to trade higher if it beats its lower projections.
Clorox’s sustainability strategy is a part of a broader shift among corporations to acknowledge — and reduce — their environmental impact as studies show the considerable economic consequences wrought by climate change.
“We’ve made a very bold goal that we want to reduce the virgin plastic and fiber that we use in our products and packaging by 50% over the next 10 years,” Dorer said.
The Oakland, California-based company also previously announced plans to make all its packaging compostable, reusable or recyclable by 2025.