Church & Dwight Co., Inc. (NYSE:CHD) Q4 2022 Earnings Call Transcript

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All right. So here are some of our goals. So you say we aim to be 100% carbon neutral by 2025. That means we will have planted enough trees since 2016 to offset all the CO2 we put into the atmosphere. And it’s pretty considerable. For a small company like ours, we put 350,000 tons of CO2 into the atmosphere annually. So this is really important to us. You see, we mention of science based targets below there. Water, we’re trying to reduce water usage by 10% annually. And in solid waste recycling, we’d like to recycling 75% of the solid waste from all of our sites. Got a lot of recognition about that, the FTSE, EPA Green Power. Safer Choice partner, we’ve been a safer choice partner for the past seven years. And this is important to our management team.

It’s important to our employees. It’s important to the families of our employees as well, but it’s also important to our consumers. So you can see, it’s really a top priority for so many consumers today, particularly younger consumers. All right. The fifth principle is to leverage people. So we say we have highly productive people and a place where people matter. When you invest in a company, you bet on people, and you bet ideas and their ability to execute those ideas. And I can tell you, we have a really strong management team. But it’s not just the management team, it’s also the 5,000 people that we have in our company. 3,000 of those people are in supply chain, 60% of the company. That is the backbone of Church & Dwight. And when you think about what’s the culture in Church & Dwight.

Any member of our management team could take you through this. It’s a blue-collar company. That’s not a dress code thing. This is how you will go to work every day. It’s a roll up your sleeves environment. We’ve got a lot of high-aptitude people in the company. Many of them have worked in other large CPG companies. Wanted to go smaller where they could make a difference. So it’s blue collar, high aptitude, underdog. So we compete against companies that are far, far larger than us and you know who they are. We never use that as an excuse. We beat these big companies every day. The fourth thing is getting the facts. So we — it’s a company we’re maniacal about numbers and data. And one point of time, people made decisions based on the person who had the gray hairs in the room, the gray beards like me.

So I know best, I’ve got 40 years’ experience, no more. That is not how business is done. Now it’s done based on data, and we are oriented towards data, and we have data sciences in the company now, and we’re becoming more and more focused on predictive analytics. Just to kind of round it out, digitally savvy is something that’s very important to us. That’s something we’ve focused on over the past five or six years. Diversity is the last one — second lesson one. And finally, it’s take risks. We want to be risk takers in the company. The way we illustrate that, we actually have a picture of Johnny Depp from Pirates of the Caribbean that we use when we’re talking about this internally and say, “Hey, this is who we are.” So I just want to give you a little bit of background on that.

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