11.02.21
The Estée Lauder Companies (ELC) has released its 2021 Sustainability Report.
Fabrizio Freda, president and chief executive officer, states on ELC's site:
"At The Estée Lauder Companies, our success is deeply rooted in our core values and the positive impact we have on our employees, our communities and the planet. Beauty Inspired, Values Driven is our promise to accelerate progress in these areas of strategic importance in order to continue delivering long-term, sustainable growth."
In fiscal 2021, ELC made significant progress against its goals and commitments in key areas, including packaging.
About the new report, Freda says, "Despite the pandemic, we remained steadfast in prioritizing the health and wellbeing of our employees, consumers, and communities around the world, while delivering on our long-term commitments.”
He adds, “Doubling down on our social impact and sustainability strategy is an important part of our goal to continue delivering long-term value and remain the global leader of prestige beauty.”
Nancy Mahon, senior vice president, Global Corporate Citizenship and Sustainability, The Estée Lauder Companies, says, "In fiscal 2021, we worked hard to continue developing long-term solutions to help protect our planet, drive inclusion and equity, and put people at the heart of everything we do—all while meeting our business objectives.”
Mahon adds, "While we’ve made great progress, we know there is more collective action needed to help address ongoing and new challenges in the next decade.”
This year is ELC's 75th anniversary. William P. Lauder, executive chairman, comments, “As The Estée Lauder Companies marks its 75th anniversary, it is important to recognize that the company’s success has long been rooted not only in its business strategy, but in a deep understanding of its core values.”
Lauder continues, “These values, including respect for the individual, uncompromising ethics and integrity, generosity of spirit, and fearless persistence are what will accelerate our commitments into the next 75-years and beyond.”
Take a look at the following highlights from the report.
ELC Announces More Ambitious Goals
ELC achieved its PCR goal ahead of schedule—and also announced another milestone to achieve. The company will increase the amount of PCR material in its packaging to 25% or more by the end of calendar year 2025.ELC will also reduce the amount of virgin petroleum plastic in its packaging to 50% or less by the end of calendar year 2030.
In fiscal 2021, 89% of the company’s forest-based fiber cartons were FSC certified, increasing from 28% in fiscal 2019, driving progress towards its goal to have 100% of its forest-based fiber cartons FSC certified by the end of calendar year 2025.
Advances in Green Chemistry & Ingredient Transparency
In fiscal 2021, ELC integrated an innovative green chemistry program into its product development process, enabling visibility into the green chemistry profile of new product launches. The company is moving quickly to advance this work, especially in light of growing consumer interest in product formulation.All of ELC's brands will publish key ingredient glossaries by the end of calendar year 2025.
Fiscal 2021 saw an additional seven brands — Estée Lauder, M·A·C, Bobbi Brown, Bumble and bumble, Editions de Parfums Frédéric Malle, GlamGlow, and Smashbox — publish ingredient glossaries on their websites.
Climate & Energy Goals
ELC was named to the CDP Climate A List in 2020, achieving a distinction reached by only the top 5% of the more than 5,800 companies scored.ELC was also honored with RE100’s 2021 Enterprising Leader Award, acknowledging the company’s progress and leadership in the global transition to 100% renewable electricity. In fiscal 2021, the company made strong progress on its Scope 1 and 2 SBT and continued to make efforts towards meeting its Scope 3 SBT.
The company’s largest renewable energy agreement to date — a 22 MW Virtual Power Purchase Agreement for a wind farm in Oklahoma — became fully operational, generating enough clean, renewable energy to cover its entire North America operations.
ELC expanded its renewable energy portfolio through a new, on-site solar installation in Hillmount, Canada, bringing its total solar capacity to 5.7 MW. The company generated a cumulative total of more than 5,000 MWh of solar energy in fiscal 2021, supporting both progress toward its SBTs and helping meet its facilities’ energy needs with green power.
Fundraising to Support Causes
The company’s flagship social impact programs underpin its global social investment strategy.Examples include:
- Founded in 1992 by the late Evelyn H. Lauder with the launch of the iconic Pink Ribbon, The Breast Cancer Campaign (BCC) is ELC’s largest corporate social impact program. Together, BCC and ELCCF have funded more than $108 million for lifesaving global research, education, and medical services.
- The company’s groundbreaking M·A·C VIVA GLAM campaign has raised more than $500 million since 1994 for the global fight against HIV/AIDS and its mission to support health and rights for all, with a focus on women and girls and the LGBTQIA+ community.
- Co-Impact: ELCCF became an inaugural donor to Co-Impact's Gender Fund with a pledge of $15 million over five years focused on achieving transformative systems change for gender equality.
- Grantmakers for Girls of Color (G4GC): ELCCF committed to support G4GC’s Black Girl Freedom Fund, building upon the company’s existing commitment to girls’ education and racial equity with an added emphasis on reaching local groups at the intersection of race and gender.
- Plastics for Change: ELCCF’s partnership helps to enhance livelihoods for waste collectors in India, the majority of whom are women, while diverting plastics from the ocean.
- The Young Women’s Leadership Schools (TYWLS): A longtime partner with the Student Leadership Network’s TYWLS program, in fiscal 2021, ELCCF increased its longstanding support to include all TYWLS New York City schools serving girls in high school.
