Leading cleaning and sanitation products maker Ecolab Inc (ECL) has been named as one of the 11 companies in the 2011 Carbon Disclosure Project (“CDP”) performance leadership index. The CDP performance leadership index recognizes companies for their efforts at addressing climate change.
Minnesota-based Ecolab earned a “Band A” rating (the highest performance band in the index) for its fully-integrated climate change strategy. Moreover, the company has been named in the CDP Carbon Disclosure Leadership Index (“CDLI”) for two years in a row. CDLI recognizes companies that demonstrate commitment to strategy, governance, shareholder communications and transparency in their reporting practices.
The recognition marks Ecolab’s sustained commitment to effectively manage greenhouse gas (“GHG”) emissions, its strong awareness of the issues related to climate change and continued focus on sustainable operations and products/solutions for its customers.
Ecolab develops and markets products and services for the hospitality, food service, institutional and industrial markets. The company offers cleaning, sanitation, pest elimination, maintenance and repair products as well as systems and services.
Ecolab leads in cleaning, sanitizing, pest elimination and food safety solutions with annual sales of roughly $6 billion. To boost growth, it continues to invest in strategic areas such as, product innovation, healthcare, water and energy and global pest elimination while rationalizing operating costs. Moreover, the company remains focused on bringing new technologies aimed at reducing food safety risks.
Although we are impressed with Ecolab’s strong international exposure and recovery across its end-markets, we remain concerned about intense competition. The company’s U.S. Cleaning & Sanitizing and International divisions face stiff competition from Clorox (CLX) and Church & Dwight (CHD).
Moreover, raw material price fluctuations represent a headwind for Ecolab and its aggressive acquisition strategy has inherent integration risks. Currently, we are Neutral on Ecolab, backed by a Zacks #3 Rank (Hold).
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