ELC Announces its 2020-2025 Environmental, Social and Governance (ESG) Goals
Company Feature, 13 Mar 2019
Sustainability and citizenship have long been central to how The Estée Lauder Companies (ELC) and its brands operate. Building on this legacy of responsibility to our consumers, our communities and the world we live in, the Company has announced additional Environmental, Social and Governance (ESG) goals for 2020-2025.
Fabrizio Freda, President and Chief Executive Officer
At ELC’s Investor Day in New York City on 6 March 2019, Fabrizio Freda, President and Chief Executive Officer, presented selected ESG goals that will enable the Company to continue advancing its commitment to responsible corporate citizenship. These enterprise-wide goals will drive value for our brands as they align and innovate to meet these commitments.
"Consumers and employees are increasingly drawn to purpose-driven brands and companies," said Mr. Freda. "We have a long history of giving back and improving the places where we live and work. We are proud of our many achievements in this area. We are taking our mission to a higher level and accelerating our ESG efforts by announcing new goals, which will be integrated into our strategy and business operations."
We have a long history of giving back and improving the places where we live and work.
Fabrizio Freda
Nancy Mahon, Senior Vice President, Global Corporate Citizenship and Sustainability, added, "The Estée Lauder Companies is proud of our many sustainability and citizenship achievements. Together, we will continue to leverage our current successes to reach and build upon these important new goals."
The Environmental, Social and Governance goals announced on Investor Day are:
Responsible Sourcing
- As part of our continuous efforts to address issues that may exist within complex supply chains, by 2025 we will have identified sensitive ingredient supply chains and developed robust biodiversity and social action plans for them.
- At least 90% of our palm-based ingredients (palm oil and its derivatives) will be certified sustainable from RSPO physical supply chains by 2025.
Emissions
- By 2020, we will build upon our current net zero carbon emissions commitment and set a science-based target covering Scopes 1, 2 and 3.
Packaging
- By 2025, 75-100% of our packaging will be recyclable, refillable, reusable, recycled or recoverable. In achieving this goal, we will increase the amount of post-consumer recycled material in our product packaging by up to 50%.
- Our ambition is to use responsibly-sourced paper products whenever possible, with a goal to have 100% of our forest-based fibre cartons FSC certified by 2025.
Ingredient Transparency
- We will develop a glossary of key ingredients that includes descriptions of the ingredients’ purposes and will make this information available online by 2025.
Learning / Employee Safety
- By 2020, 100% of our employees worldwide will have access to training on basic sustainability and corporate social impact programmes.
- We will drive safety initiatives to continue decreasing the total incident rate*. This will ensure ongoing world class-leading levels, with a goal of 0.15 by 2025.
Social Investments & Employee Engagement
- By 2020, our programmes and grants focused on health, education and environmental initiatives will impact the well-being of 10 million individuals around the world.
- By 2025, we will engage 50% of eligible employees in regional, brand or local volunteer programmes such as ELC Good Works, the Breast Cancer Campaign and the M·A·C Global Volunteer programme.
- Each brand will focus on and support at least one social or environmental cause by 2025.
“By 20XX” means by the end of Calendar Year 20XX
*Total Incident Rate