United States
Built to Model Sustainability and Well-Being
Behind the Scenes at ELC's Diversified Global Facilities
Company Feature, Nov 1, 2023
Our focus on the intersection of sustainability and employee well-being is evident in our global investments in state-of-the-art facilities. From innovation centers and technology hubs that spark inspiration, to efficient factories and distribution centers, our facilities shape new possibilities for the future of prestige beauty. In retail, our newly launched Responsible Store Design Program offers brands an optional set of green building standards to help incorporate energy, water, waste, and indoor air quality principles into the design of new construction and major renovations.
A Blossoming Manufacturing and Engineering Innovation Hub
In Japan, we are nearing completion of our Asia-Pacific (APAC)-based manufacturing plant and engineering innovation center. Known as Sakura, or “Cherry Blossom” in Japanese, the facility will manufacture and distribute select prestige products primarily for our APAC region and our Travel Retail business. We chose Japan for many reasons, including the country’s strong reputation for manufacturing excellence, craftsmanship, quality, and efficiency, which complement the high standards of our global operations.
Our ambition is for the Sakura Manufacturing Campus to serve as the blueprint for modernizing and strengthening our manufacturing capabilities around the world. Throughout the campus, state-of-the-art technologies—such as sophisticated analytics, dynamic scenario planning, and network modeling—are being put in place to help unlock efficiencies and cost savings to drive business growth.
With its proximity to Tokyo, the plant’s strategic location positions us to capitalize on connections with our local Research & Development (R&D) facilities, strengthening our ability to create high-quality, prestige beauty products. In addition, manufacturing products closer to Asian consumers means shorter distribution routes, helping to reduce our transportation footprint—one of the many ways we’re working to reduce greenhouse gas (GHG) emissions intensity.
We designed the plant to optimize the employee experience, with a technology-rich, self-directed team atmosphere. We focused on supporting working parents by offering an on-site nursery to ease the burden of finding childcare and to reduce the barriers we face in attracting a rich mix of employees. In addition, the in-house gym gives employees easy access to fitness facilities. Features like these, as well as environmental innovations, including on-site solar power and industry-leading wastewater recycling, are helping Sakura align to leading third-party wellness and green building standards, including WELL Platinum (a certification standard related to the health and well-being of a building’s occupants, as overseen by the Internal WELL Building Institute) and LEED (Leadership in Energy and Environmental Design).
Building On Two Decades of R&D in China
In Shanghai, our new China Innovation Labs significantly expand our 18-year R&D presence in the country. It is the first ELC facility outside of the United States to have end-to-end innovation in one location, including research, ideation, insights, clinical, sensory and performance testing, formulation, packaging, and engineering. Employees at this facility will also work closely on innovations related to sustainability, including in areas like green chemistry, sourcing, and packaging.
The design of the China Innovation Labs is inspired by the five Chinese elements—water, wood, fire, earth, and metal—and symbolizes our commitment to the Chinese consumer. A highlight of the space is the center staircase, intended to represent the flow of water and a source of innovation and creation for our team of local scientists, engineers, and product developers.
With these designs, as well as initiatives to reduce waste, energy, and water, this facility becomes our first LEED and WELL Platinum-certified building for ELC.
At the China Innovation Labs, we have introduced two new prestige beauty innovation centers. Scientists at the Global Advanced Technology Center will focus their research on anti-aging and skin science, and they will study plant extracts and herbal ingredients sourced from Asia. Scientists at the Men’s Beauty Center of Excellence will seek to advance men’s skin care science, product and package development, and clinical testing, enabling our brands like Lab Series to benefit from in-depth research and insight into male consumers.
Harnessing the Power of Renewables Worldwide
Including Galgenen, we now have five sites around the world with on-site solar power—the largest being in Melville, New York. We have two more on the way, with one at our Sakura facility in Japan, and the other in Oevel, Belgium. These installations, along with our Virtual Power Purchase Agreement (for energy generated by a wind farm in Oklahoma) and our commitment to purchase 100% renewable electricity globally, are integral to helping us reach our GHG emissions-reduction targets.
Among our existing solar arrays, our Hillmount manufacturing facility in Markham, Ontario, features approximately 1,600 panels and produces enough renewable power to fill 10% of the plant’s energy needs. This solar project, among other environmental features, such as dedicated parking spaces for electric and hybrid vehicles, supports Hillmount’s progress towards achieving green building certification.
We continue to educate our employees around our solar use and climate change mitigation efforts, including hosting internal events, such as a Climate Week NYC virtual event with the Women's Leadership Network Employee Resource Group (ERG) and a "Sun Rays and Sundaes" themed solar array tour in Melville, NY.
Reducing Resource Use
Since our Galgenen Distribution Center officially opened in fiscal 2022, we have continued to enhance our dedicated Travel Retail distribution capabilities in Switzerland. The facility is roughly 300,000 square feet in size and its design emphasizes modularity, ergonomics, and process and quality improvements. Sustainability initiatives feature prominently throughout the center. These initiatives include a comprehensive waste management system to separate recyclables, the use of electric trucks to remove waste, and electric charging stations for personal employee electric vehicles.
The site also boasts significant energy efficiency measures. In addition to LED lighting throughout, rooftop solar power contributes renewable electricity. The Galgenen site is our first location to implement district heating, an alternative solution for the use of fuel oil and/or natural gas, which helps us reduce our GHG emissions and bolster the energy independence and reliability of our operations in the region, while lowering costs.
A New Innovative Work Space
Our new Global Technology Center in Bucharest, Romania, provides an ideal expanded work environment. Centrally located near the vibrant Bucharest Old Town, the Center serves as a collaborative space designed to facilitate strategic thinking, team building, and innovation across expertise including IT, Architecture, Engineering & Development, Data & Analytics, Project Management, Enterprise Cybersecurity and Product Management. The facility was also designed to optimize energy and water use.
