Palm Oil

The Est\u00E9e Lauder Companies

Palm Oil

We are committed to the responsible sourcing of palm oil and are working with suppliers, communities and knowledgeable organizations to find sustainable solutions to palm oil sourcing.

Our Statement

Palm oil, the most widely used vegetable oil, is a globally traded agricultural commodity used in approximately half of all consumer goods like packaged foods and personal care products as well as biofuels. While the personal care products industry represents less than 1% of global palm oil usage, we at The Estée Lauder Companies are sensitive to the issues and complexities surrounding its sustainable production and traceability.

Increasing demand for palm oil has had measurable environmental and social impacts including deforestation, habitat destruction and biodiversity loss. A few of our brands use palm oil that is extracted from the palm fruit. We source this palm fruit oil from certified sustainable sources. In addition, the majority of our brands also use certain ingredients that are derivatives of palm kernel oil (PKO), processed by our suppliers. The Estée Lauder Companies has already begun to substitute existing non-certified PKO derivative ingredients with Roundtable on Sustainable Palm Oil (RSPO) certified Mass Balance (MB) alternatives in some of our formulae. This substitution process is expected to continue over several years.

Although The Estée Lauder Companies is a comparatively low-volume user of palm oil, palm fruit oil, PKO and PKO derivatives, we believe we have a responsibility to manage the environmental impacts of all palm materials we source. We are committed to working in collaboration with our suppliers to further enhance the traceability of PKO derivative ingredients we use and to the development of sustainably sourced alternatives for our Company.

Our internal Palm Oil Working Group has engaged with suppliers and organizations knowledgeable on sustainable palm sourcing, while seeking sustainable PKO derivatives, where available, to replace existing materials.

As a result of our ongoing commitment to support sustainable palm oil sourcing, we have established a more comprehensive policy and a plan for greater traceability and policy compliance among high-volume palm oil, PKO and PKO derived ingredient suppliers from which we procure directly. We are committed to purchasing more than 50% of our palm/PKO based material volume as MB or segregated by 2020.

Our enhanced actions and goals include:
·    We have adopted a no-deforestation policy, which requires our high-volume suppliers to ensure that they prohibit new clearing or palm development on High Carbon Stock (HCS), High Conservation Value (HCV) forests and peat lands or the use of fire for the preparation of new planting or re-planting.  By the end of 2015, all suppliers of ELCs high-volume palm oil, PKO and PKO derived ingredients will be required to provide third-party verification that they are complying with our deforestation policy.
·    As a member of the RSPO, we are committed to sourcing our PKO and PKO derivative ingredients from certified sustainable sources and from suppliers that can:

               -Demonstrate their compliance with the RSPO Principles and Criteria.

               -Support the elimination of deforestation including high-carbon stock forests, high-conservation value forests and peat lands.

               -Provide source traceability.

 ·    Until The Estée Lauder Companies is able to purchase 100% PKO derivative ingredients traceable to known and certified sources, we will annually purchase Green Palm Certificates to offset the use of non-sustainable PKO derived ingredients that we procure directly. Green Palm is a certificate trading program, which contributes toward more sustainable palm oil products.
·    Our Company seeks to have more than 50% of our overall palm-based material ingredient (by volume) MB or segregated RSPO certified by 2020.
·    ELC will map the supply chain for our high-volume palm oil, PKO, and PKO derived ingredient suppliers and assess the sourcing policies and practices of these key suppliers.
We remain committed to acting responsibly and will continue to work with our suppliers and industry partners and other like-minded organizations to find the best ways to encourage and support the development of sustainable palm oil production.