Responsible Sourcing
Responsible Sourcing
To create the highest quality beauty products and experiences for our discerning consumers, we require the best ingredients and packaging materials. Our deep-rooted values guide us to operate with the highest level of integrity and ethics, while caring for people and the environment.
We aim to continuously enhance our responsible and ethical sourcing practices in line with goals and objectives and with stakeholder expectations. This means reviewing our relevant policies, working closely with our brands and sourcing partners and collaborating with industry groups and peers to improve supplier practices and performance.
Sourcing Practices
Sourcing Practices
Many of our brands use resources from all around the world. We endeavor to source our ingredients responsibly and sustainably with respect for local communities and the environment. We expect our suppliers to comply with local regulations and national laws governing minimum wages, work hours, overtime compensation, hiring, occupational safety, forced and/or child labor and biodiversity.
Our internal Responsible Sourcing Working Group meets regularly to review our sourcing standards, analyze and benchmark best practices, engage key stakeholder groups and develop and implement policies to advance sustainable sourcing practices within the Company.
Strategic Partnerships
Strategic Partnerships
Effectively addressing the challenges related to sustainable sourcing requires collaboration between governments, civil society, local communities and private enterprise. Important to this process are Our partnerships with organizations that help us build and strengthen our sourcing strategies are important to this process.
To ensure continuous improvements in our sourcing practices, we became a member of AIM-Progress, a global responsible sourcing forum for diverse consumer goods manufacturers and their common suppliers. Through shared auditing, member benchmarking, supplier capability-building and best practice education, AIM-Progress works with members to improve supply chain practices.
We are members of the Roundtable on Sustainable Palm Oil (RSPO), a nonprofit organization that unites key stakeholders in the palm oil industry to develop and implement global standards for sustainable palm oil. The RSPO has developed a set of environmental and social criteria, which companies must comply with in order to produce Certified Sustainable Palm Oil (CSPO). When they are properly applied, these criteria can help to minimize the negative impact of palm oil cultivation on the environment and communities in palm oil–producing regions.
Read more about our position and actions on Palm Oil.
We are also members of the Natural Resources Stewardship Circle (NRSC), a nonprofit organization dedicated to implementing good practices and responsible sourcing in the beauty industry — based on the principles of the United Nations Convention on Biological Diversity and other international agreements.
Supplier Monitoring
Supplier Monitoring and Compliance
Our global supply chain is composed of direct suppliers, including manufacturers of packaging components, suppliers of raw material ingredients and third-party manufacturers, and indirect suppliers, including transportation, energy, print, visual merchandising, counter construction and other services.
Our mandatory Supplier Code of Conduct sets clear expectations for our partners to meet applicable environmental, human rights, antidiscrimination protection, labor and health and safety laws and regulations in countries where we do business.
Our work in this area is governed by our Global Procurement team, which has representatives in each of our regions and our dedicated Responsible Sourcing team. Global Procurement and the Responsible Sourcing team, in partnership with Global Quality Assurance, Research & Development, Global Regulatory Affairs and Global Corporate Citizenship and Sustainability, is responsible for ensuring that the suppliers with whom we do business meet the expectations for ethical behavior outlined in our Supplier Code of Conduct.
Our Supplier Code of Conduct is the foundation we use to set expectations. It is the basis for how we evaluate and help our suppliers meet our high ethical standards in the procurement of our product ingredients and materials. The Supplier Code of Conduct, in conjunction with our standard purchasing contracts, requires that suppliers be in full compliance with all applicable governmental, legal, regulatory and professional rules and regulations. Our Responsible Sourcing team is continuously working to strengthen our supplier monitoring and compliance program.
Read more about our position on Supplier Relations.
Biodiversity
Biodiversity
Our company has a long history of sourcing raw materials from environments that are rich in biodiversity, with more than half of the raw materials we use derived from plant origin. As threats to the world’s natural resources increase, we must continue to strengthen our approach to protecting biodiversity. To this end, we are currently working to develop an ethical and responsible framework for sourcing from biodiverse areas. We are developing sourcing protocols that will enable us to ensure:
- Sustainable use of materials from areas rich in biodiversity.
- Respect for local communities and their traditional knowledge/practices, cultural expressions and equitable sharing of benefits linked to the use of genetic resources.
Sourcing Practices
Many of our brands use resources from all around the world. We endeavor to source our ingredients responsibly and sustainably with respect for local communities and the environment. We expect our suppliers to comply with local regulations and national laws governing minimum wages, work hours, overtime compensation, hiring, occupational safety, forced and/or child labor and biodiversity.
Our internal Responsible Sourcing Working Group meets regularly to review our sourcing standards, analyze and benchmark best practices, engage key stakeholder groups and develop and implement policies to advance sustainable sourcing practices within the Company.
Strategic Partnerships
Effectively addressing the challenges related to sustainable sourcing requires collaboration between governments, civil society, local communities and private enterprise. Important to this process are Our partnerships with organizations that help us build and strengthen our sourcing strategies are important to this process.
To ensure continuous improvements in our sourcing practices, we became a member of AIM-Progress, a global responsible sourcing forum for diverse consumer goods manufacturers and their common suppliers. Through shared auditing, member benchmarking, supplier capability-building and best practice education, AIM-Progress works with members to improve supply chain practices.
We are members of the Roundtable on Sustainable Palm Oil (RSPO), a nonprofit organization that unites key stakeholders in the palm oil industry to develop and implement global standards for sustainable palm oil. The RSPO has developed a set of environmental and social criteria, which companies must comply with in order to produce Certified Sustainable Palm Oil (CSPO). When they are properly applied, these criteria can help to minimize the negative impact of palm oil cultivation on the environment and communities in palm oil–producing regions.
Read more about our position and actions on Palm Oil.
We are also members of the Natural Resources Stewardship Circle (NRSC), a nonprofit organization dedicated to implementing good practices and responsible sourcing in the beauty industry — based on the principles of the United Nations Convention on Biological Diversity and other international agreements.
Supplier Monitoring and Compliance
Our global supply chain is composed of direct suppliers, including manufacturers of packaging components, suppliers of raw material ingredients and third-party manufacturers, and indirect suppliers, including transportation, energy, print, visual merchandising, counter construction and other services.
Our mandatory Supplier Code of Conduct sets clear expectations for our partners to meet applicable environmental, human rights, antidiscrimination protection, labor and health and safety laws and regulations in countries where we do business.
Our work in this area is governed by our Global Procurement team, which has representatives in each of our regions and our dedicated Responsible Sourcing team. Global Procurement and the Responsible Sourcing team, in partnership with Global Quality Assurance, Research & Development, Global Regulatory Affairs and Global Corporate Citizenship and Sustainability, is responsible for ensuring that the suppliers with whom we do business meet the expectations for ethical behavior outlined in our Supplier Code of Conduct.
Our Supplier Code of Conduct is the foundation we use to set expectations. It is the basis for how we evaluate and help our suppliers meet our high ethical standards in the procurement of our product ingredients and materials. The Supplier Code of Conduct, in conjunction with our standard purchasing contracts, requires that suppliers be in full compliance with all applicable governmental, legal, regulatory and professional rules and regulations. Our Responsible Sourcing team is continuously working to strengthen our supplier monitoring and compliance program.
Read more about our position on Supplier Relations.
Biodiversity
Our company has a long history of sourcing raw materials from environments that are rich in biodiversity, with more than half of the raw materials we use derived from plant origin. As threats to the world’s natural resources increase, we must continue to strengthen our approach to protecting biodiversity. To this end, we are currently working to develop an ethical and responsible framework for sourcing from biodiverse areas. We are developing sourcing protocols that will enable us to ensure:
- Sustainable use of materials from areas rich in biodiversity.
- Respect for local communities and their traditional knowledge/practices, cultural expressions and equitable sharing of benefits linked to the use of genetic resources.
Featured Ingredients
We develop coveted prestige beauty and personal care products from a diverse portfolio of ingredients, working diligently to source ingredients responsibly and with attention to potential impacts on people and the environment.
Sandalwood 1
More than 15 years ago, Aveda introduced the use of Australian Sandalwood (Santalum spicatum) essential oil as a sustainable ingredient in its products. At the time, the brand developed a strategic relationship with the Kutkabubba Aboriginal Community of Western Australia to ensure the sustainable and equitable wild harvest of Australian Sandalwood trees for essential oil production.
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Sandalwood 1
In recent years, the community formed Dutjahn Sandalwood Oils (DSO), a 50% aboriginal-owned sandalwood oil-processing venture with a 100% aboriginal controlled nonprofit foundation. Its mission is to improve and broaden the indigenous community’s benefit share in the natural resource supply chain and to build a nature-based cultural economy, by working with the local government to grant a license to sustainably harvest indigenous flora from their desert homelands under fair and equitable terms. Aveda has remained one of the biggest supporters of Dutjahn and introduced Dutjahn as a partner and supplier to many of the industry’s biggest fragrance houses.
Dutjahn Sandalwood Oils x ELC: Creating a Beautiful Future Together
In fiscal 2019, Dutjahn was one of 22 indigenous communities from around the world to receive the UN Development Programme’s Equator Prize, which recognizes local and indigenous organizations that showcase innovative, nature-based solutions for tackling climate change, environment and poverty challenges. The Estée Lauder Companies is proud to partner with Dutjahn; we remain bound by our shared values of respect, learning through listening, commitment to the well-being of all those involved and to the land that sustains life.
Read more about the company's partnership with Dutjahn Sandalwood Oils.
Mica
Mica is an ingredient used across many industries, including beauty and personal care. The mica supply chain is complex, and we work closely with our suppliers and local sourcing communities to address challenges that may exist.
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Mica
A portion of the mica used in the cosmetics industry comes from the Indian states of Jharkhand and Bihar. These two areas make up India’s “mica belt,” where the mica mining industry remains a key contributor to the regional economy.
In 2005, The Estée Lauder Companies (ELC) partnered with local non-governmental organization (NGO) Bachpan Bachao Andolan, now known as the Kailash Satyarthi Children’s Foundation (KSCF), to begin to address some of the issues surrounding child labor in the mica mining industry. KSCF works with local communities in the region to develop proactive and sustainable solutions to eradicating child labor in the Indian mica mining industry, including the development of Bal Mitra Grams (BMGs) or Child Friendly Villages.
The Kailash Satyarthi Children’s Foundation x The Estée Lauder Companies: Partnering to Address Child Labor in Mica Mining
An effective model that has been adopted by other organizations, a Child Friendly Village seeks to ensure that none of its children work in the mica mines by promoting education and enrolling children in school. They also assist in the formation of child councils, which empower youth to be self-advocates and find ways to work with local governments to address critical child rights and issues like gender parity and access to food and water. Through June 2020, ELC has supported the establishment of more than 150 Child Friendly Villages.
Our partnership with KSCF demonstrates how a collaborative model—one that utilizes the expertise of organizations on the ground working directly with local communities and listening to their needs—can lead to lasting solutions to issues that exist in the global supply chains. This model has been recognized as a best practice by the National Commission for Protection of Child Protection Rights (NCPCR) and the University of Delhi School of Social Work.
Vanilla
Vanilla is one of the most ubiquitous ingredients in the world, yet 80% of the world’s vanilla comes from a single place: the island of Madagascar, where small farms are responsible for most of the production. Our Responsible Sourcing team and Aveda began a pilot program using blockchain technology to trace our Madagascan vanilla supply chain from harvest through production.
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Vanilla
Advancing Supply Chain Transparency with Blockchain-Enabled, Traceable Vanilla
The livelihood of smallholder vanilla farmers in Madagascar depends on successful harvests, but crop production is a delicate task. Vanilla plants must be tended to for three to four years before bearing pods, and the country is vulnerable to extreme weather conditions such as drought and flooding.
In fiscal year 2020, our Responsible Sourcing team and Aveda began a pilot program using blockchain technology to trace the Madagascan vanilla supply chain from harvest through production. We partnered with BSR, (En)Visible and IFF/LMR, one of our strategic suppliers, to bring the project to life.
Farmers were provided a digital ID card that conveys their unique traceability code via a QR reader. Using mobile phones and QR code IDs, data is now captured directly from a farmer upon purchase of the vanilla. The product and producer information is recorded on a blockchain, forming an immutable chain of custody. From the time the vanilla leaves the producers’ hands, it is tracked through the supply chain via the blockchain to validate quality and authenticity.
Our objectives with this project are to increase transparency and traceability within one of our more complicated and sensitive supply chains. We also seek to promote fair and inclusive business practices to support those who help us bring the beauty of vanilla to our customers around the world.
Read more about the company's Blockchain-Enabled, Traceable Vanilla
Palm Oil
Palm oil remains one of the most widely used ingredients across multiple industries, including food and beverage, fuel and beauty and personal care. The creation of palm oil plantations has led to massive deforestation around the world, in particular in Indonesia and Malaysia. Many companies such as ours are members of the Roundtable on Sustainable Palm Oil (RSPO) and have made commitments to source their palm oil supply sustainably to prevent deforestation and to protect human rights.
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Palm Oil
Project Lampung: Supporting smallholder farmers to increase availability of sustainably produced palm oil
In fiscal 2019, The Estée Lauder Companies (ELC) announced a three-year partnership with chemical giant BASF, RSPO and the NGO Solidaridad to work with smallholder Indonesian palm oil farmers (farmers who own or cultivate farms that are less than 2.0 hectares of land). Approximately 40% of the world’s palm production comes from smallholder farmers who rely on it for their livelihoods and who are key stakeholders in the value chain. The project launched in Lampung, Indonesia, and targets 1,000 independent Indonesia smallholder farmers.
The project supports farmers to improve their livelihoods and their sustainable production of palm oil and palm kernel oil by offering continuous education and technical assistance on how to implement and maintain sustainable palm oil practices. The project’s goal is that a minimum of one-third of the supported smallholder farmers become certified according to the Smallholder Standard of RSPO at the end of three years.
ELC is proud to be collaborating with its partners and the Indonesian government to foster this sustainable palm oil production supply chain in Lampung, one that is free from deforestation and still competitive in the global market, while at the same time increasing the social and economic benefits for farmers.
Read more about the company's palm oil viewpoint
Read more about the company's sustainably produced palm oil.
