Estée Lauder Companies
The Estée Lauder Companies Inc. is one of the world’s leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products. The company’s products are sold in approximately 150 countries and territories under brand names including: Estée Lauder, Aramis, Clinique, Lab Series, Origins, Tommy Hilfiger, M·A·C, La Mer, Bobbi Brown, Donna Karan New York, DKNY, Aveda, Jo Malone London, Bumble and bumble, Michael Kors, Darphin, TOM FORD BEAUTY, Smashbox, Ermenegildo Zegna, AERIN, RODIN olio lusso, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, KILIAN PARIS, BECCA, Too Faced and Dr. Jart+.
William P. Lauder

William P. Lauder

Executive Chairman

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Fabrizio Freda

Fabrizio Freda

President & Chief Executive Officer

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We believe it is vital to state clearly to the world the set of our beliefs about Inclusive Capitalism. As such, we start with our Statement of Guiding Principles for Inclusive Capitalism. Knowing that words alone are not enough, each of us is making a series of commitments about how we will operate our institutions so that they help achieve Inclusive Capitalism. These commitments are forward-looking statements based on current goals, expectations and assumptions, which are not guarantees of future performance. For more information, please refer to our Terms of Use

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Summary

By the end of 2020, ELC will achieve Net Zero carbon emissions and RE100. By the end of 2020, The Estée Lauder Companies will expand its Net Zero carbon emissions commitment and set a science-based target (SBT) covering Scopes 1, 2 and 3.

Objectives

In this decisive decade for climate action, The Estée Lauder Companies expects to continue its efforts to help to ensure a healthy, beautiful planet for generations to come.

Metrics & Targets

As of the end of CY20, The Estée Lauder Companies achieved Net Zero carbon emissions and sourced 100% renewable electricity globally for its direct operations, reaching the target it set on joining RE100. Building upon this achievement, the company has also met its goal to set science-based emissions reduction targets for its direct operations and value chain, positioning the company to take even more decisive action against climate change in the coming decade. The company’s new climate targets address Scopes 1, 2 and 3 emissions and are independently validated and approved by the Science Based Target initiative (SBTi) and are as follows: Reduce absolute Scope 1 and 2 GHG emissions by 50% by 2030 from a fiscal 2018 base year Reduce Scope 3 GHG emissions from purchased goods and services, upstream transportation and distribution and business travel by 60% per unit revenue over the same timeframe.

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Summary

By the end of 2025, 75-100% of ELC’s packaging will be recyclable, refillable, reusable, recycled or recoverable. ELC will also increase PCR in its packaging by up to 50% by the end of calendar 2025.

Objectives

ELC is focused on reducing potential environmental impacts of a package across its lifecycle. ELC  will continue to increase use of PCR material in shippers, bottles, jars, lipsticks, compacts and caps.

Metrics & Targets

For FY20, 55% of The Estée Lauder Companies’ packaging by weight was recyclable, refillable, reusable, recycled or recoverable, increasing from 53% in fiscal 2019. For FY20, the company increased the amount of PCR (post-consumer recycled) material in its packaging by 15%. For FY20, 63% of the company’s forest-based fiber cartons are FSC certified, increasing from 28% in fiscal 2019.

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Summary

By end of 2025, ELC will have identified sensitive ingredient supply chains, developed robust biodiversity/social action plans for each, and at least 90% of its palm-based ingredients will be certified sustainable from RSPO physical supply chains.

Objectives

As part of ELC’s ongoing review, it will continue to develop and implement action plans as per its ongoing review and prioritization process. The company is on track to meet its goal of 90% RSPO certification from physical supply chains by the end of 2025.

Metrics & Targets

As of FY20, the company has identified a number of ingredients as priorities and has developed biodiversity and social action plans. As part of its ongoing review, the company will continue to develop and implement additional action plans as per its prioritization process. For FY20, the company met its interim goal a year ahead of schedule, with 58% of its palm-based ingredients (palm oil and its derivatives) certified sustainable from RSPO (Roundtable on Sustainable Palm Oil) physical supply chains (Mass Balance and Identity Preserved) in calendar year 2019. In total, 100% of its palm-based ingredients are certified under one of RSPO’s four certification types: Mass Balance, Identity Preserved, Segregated or Book & Claim. The company is on track to meet its goal of 90% RSPO certification from physical supply chains for 2025.

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Summary

By the end of 2020, The Estée Lauder Companies will achieve zero industrial waste-to-landfill for all global manufacturing, distribution and innovation sites.

Objectives

Going forward, The Estée Lauder Companies will continue to maintain this commitment status and onboard new facilities.

Metrics & Targets

For FY20, The Estée Lauder Companies achieved zero industrial waste-to-landfill for 100% of its global manufacturing, distribution and innovation sites.

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Summary

By end of 2020, ELC’s programs/grants focused on health, education and environmental programs will impact the wellbeing of 10 mil. individuals around the world. By end of 2025, each of its brands will focus on/support at least one social/enviro cause

Objectives

ELC’s success in meeting this goal will be carried forward through continued health, education and environmental initiatives funded by the company and the Estée Lauder Companies Charitable Foundation (ELCCF).

Metrics & Targets

Over the past two fiscal years, the company’s programs and grants have positively impacted the lives of more than 20 million individuals worldwide. As of June 30, 2020, 76% of the company’s brands are focused on an environmental or social cause. The remaining ones are working to identify causes that are meaningful to them and resonate with their individual brand identities. 

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Summary

In June 2020, The Estée Lauder Companies committed to address racial equity by ensuring Black employees have equal access to leadership trainings and talent planning and development processes.

Objectives

ELC will ensure that the company is providing more equitable access to professional development and advancement for its Black employees in the United States and hold itself accountable for creating a workforce that is more representative and responsive to people of all backgrounds.

Metrics & Targets

Ensure black employees have equal access to leadership trainings and mentorship programs with senior executives. Improve current Talent Planning and Development processes to account for any unconscious bias. Hold managers accountable for employees’ growth and career mapping by ensuring access to skills development, talent planning and conversations about progression within the company early and often. Ensure Black candidates are identified on the succession list for all senior level positions Increase dedicated resources to ensure the company is making progress against initiatives, ensuring alignment across HR and I&D.

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Summary

In June 2020, The Estée Lauder Companies committed to address racial equity by increasing diversity and representation of Black talent and professionals across end-to-end creative process.

Objectives

ELC will ensure that the end-to-end creative process accurately and consistently represents the Black experience, engages Black professionals and that the company’s products meet the needs of its Black consumers.

Metrics & Targets

The Estée Lauder Companies will increase its pool of Black talent among its behind-the-camera creative teams and require input from Black professionals or consumers in the development concepts. In the U.S., and in regions and markets where appropriate, ensure proportionate representation of Black models in campaigns. Support a pipeline of diverse creative talent through the company’s Creative Employee Working Group, ensuring it has Black representation across all brand creative teams.

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Summary

In June 2020, The Estée Lauder Companies committed to address racial equity by engaging in dialogue at all levels internally and consistently gauging employee sentiment and feedback.

Objectives

ELC will foster a stronger internal culture of advocacy and inclusion to help employees share their voices, be heard and collectively affect change.

Metrics & Targets

Engage in constant dialogue at all levels– through intimate conversation series, town halls, one-on-one talks between leaders and employees to ensure that all voices aren’t just listened to but heard, amplified and answered. Consistently gauge employee sentiment and feedback through pulse surveys to ensure that these listening efforts are working, and if not, they can be improved

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Summary

In June 2020, The Estée Lauder Companies committed to address racial equity by working closely with its Black Employee Resource Group, partnering with ERGs Allied for Justice, and organizing a company-wide Day of Solidarity.

Objectives

ELC will foster a stronger internal culture of advocacy and inclusion to help employees share their voices, be heard and collectively affect change.

Metrics & Targets

Work more closely with NOBLE, the company’s Black Employee Resource Group, to better support its Black employees. Partner with ERGs Allied for Justice, the company’s ERG Coalition, in their support of NOBLE. Organize a company-wide Day of Solidarity that focuses on learning, action and service.

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Summary

In June 2020, The Estée Lauder Companies committed to addressing racial equity through learning

Objectives

ELC will foster a stronger internal culture of advocacy and inclusion to help employees share their voices, be heard and collectively affect change.

Metrics & Targets

Expand and make The Estée Lauder Companies’ unconscious bias training mandatory for all full-time employees in the United States. Provide additional training to ensure managers have a deep understanding of the issues surrounding race and the workplace, particularly around microaggressions. Provide training for all Estée Lauder Companies employees at points of sale on servicing and supporting diverse consumers and their preferences and needs. Further incorporate training on all hair types for the company’s hair brands.

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Summary

In June 2020, ELC committed to address racial equity by ensuring that its portfolio of makeup brands deliver products that meet the diverse shade and formula needs of the Black community and its Black consumers, as appropriate by market.

Objectives

ELC will ensure that the end-to-end creative process accurately and consistently represents the Black experience, engages Black professionals and that its products meet the needs of its Black consumers.

Metrics & Targets

In June 2020, The Estée Lauder Companies committed to ensure that its portfolio of makeup brands deliver products that meet the diverse shade and formula needs of the Black community and its Black consumers, as appropriate by market.

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Summary

In June 2020, The Estée Lauder Companies committed to addressing racial equity by pledging $10 million over the next three years to support racial and social justice.

Objectives

ELC will meaningfully support external organizations and non-profits pushing for systemic changes and racial and social justice.

Metrics & Targets

In June 2020, The Estée Lauder Companies, its brands and the Lauder family pledged to give, including through The Estée Lauder Companies Charitable Foundation and the company’s matching of employee gifts, a total of $10 million over the next three years (beginning in June 2020) to support racial and social justice and to continue to support greater access to education through groups such as NAACP Legal Defense and Education Fund Inc., Equal Justice Initiative and the Young Women’s Leadership Schools (TYWLS), a program of the Student Leadership Network.

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Summary

The Estée Lauder Companies seeks to build productive relationships with its key stakeholders and incorporate stakeholder perspectives to drive future success.

Objectives

As The Estée Lauder Companies shapes the future of beauty it incorporates stakeholder perspectives it believes will help drive its future success.

Metrics & Targets

The Estée Lauder Companies seeks to build productive relationships with its key stakeholders, including employees, consumers, investors, retailers, nongovernmental organizations (NGOs), suppliers, regulators and local communities.

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Summary

ELC promotes a culture of uncompromising ethics and integrity and puts forth standards to uphold the principles and ideals that make it a global leader in prestige beauty.

Objectives

The Estée Lauder Companies promotes a culture of uncompromising ethics and integrity and put forth standards to uphold the principles and ideals that make the company a global leader in prestige beauty.

Metrics & Targets

The company expects employees and business partners to conduct business in compliance with applicable laws and regulations and with the high ethical standards and policies laid out in the Code of Conduct and Supplier Code of Conduct.

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Summary

In June 2020, The Estée Lauder Companies committed to address racial equity by committing to semi-annual updates on progress against its goals and KPIs and providing performance feedback regarding managing diverse talent to leadership.

Objectives

ELC will foster a stronger internal culture of advocacy and inclusion to help employees share their voices, be heard and collectively affect change.

Metrics & Targets

Commit to updates semi-annually on progress against the company’s goals and KPIs. Ensure that performance feedback regarding managing diverse talent can be provided to leadership and middle management via the 360 tool.

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Summary

In June 2020, The Estée Lauder Companies committed to address racial equity by reaching U.S. population parity for its Black employees for all company levels in the next five years.

Objectives

ELC will provide  more equitable access to professional development and advancement for its Black employees in  the U.S. and holds itself accountable for creating a workforce that is more representative and responsive to people of all backgrounds.

Metrics & Targets

Reach U.S. population parity for the company’s Black employees for all levels in the next five years. Require diverse slates of candidates for all Executive Director and above positions in external and internal searches before hiring decisions can be made. Establish stronger partnerships with Black organizations (e.g., National Black MBA Association) for recruiting. Double our recruits (FT/Interns) from HBCUs and double diverse recruits from other top universities in the next two years. Double the number of diverse external recruiting firms in the next year. Create stronger partnerships with current and additional Black owned businesses to support recruiting.

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Summary

In June 2020, The Estée Lauder Companies committed to address racial equity by doubling the amount it currently spends on sourcing ingredients, packaging materials and supplies from Black-owned businesses over the next three years.

Objectives

ELC will ensure that the company leverages its power to support Black-owned businesses.

Metrics & Targets

The Estée Lauder Companies commits to at least double the amount it currently spends on sourcing ingredients, packaging materials and supplies from Black-owned businesses over the next three years.

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Recognizing it will take alignment of all our organizations to scale impact globally, we invite you to join the movement as a Steward of Inclusive Capitalism. Together, the collective action of Council members will contribute to a fairer, more inclusive and sustainable future for all people and our planet.