The Estée Lauder Companies identifies annual waste minimization objectives at their facilities to reduce both the cost and quantity of waste that is generated. Every facility is required to have a paper and corrugate recycling program and most have programs to recycle glass, plastic, and metals when applicable. Operations wastes is recycled, reused or sent for energy recovery. Program highlights include agreements with suppliers to reuse component packaging, and switching to environmentally benign cleaning solutions.

In Fiscal Year 2006, our total waste generated and disposal costs were reduced. Of the operations waste that could not be re-used and / or reclaimed, 54% was recycled and the remainder processed at waste-to-energy facilities.

There was a 5% decrease in total waste (16,622 Metric Tons) and a .25% decrease in disposal cost ($2.6 million) in Fiscal Year 2006.

Disposal cost per 100 units increased by .03 cents.

• No Landfill Initiative—The Company has accepted short term price increases in order to use more environmentally friendly disposal alternatives that lower the potential for any long term liabilities.
• Increase in specialized EXOB recycling which demand a premium cost.
• General cost of living increase.