A Commitment to Responsible Sourcing
Among its most notable achievements, ELC has made remarkable strides in sustainable palm oil sourcing, achieving certification for 95% of its palm-based ingredients through the Roundtable on Sustainable Palm Oil (RSPO). This milestone, reached ahead of the 2025 target, is emblematic of the company’s commitment to fostering responsible sourcing practices and maintaining deforestation-free supply chains. "In fiscal 2024, we achieved several sustainability goals ahead of schedule, including surpassing our water withdrawal targets and reaching our palm oil objectives," stated Nancy Mahon, Chief Sustainability Officer at ELC.
This proactive approach highlights ELC's collaborative efforts with its suppliers, leveraging RSPO certification to create a more sustainable palm oil footprint. As the cosmetics industry faces mounting pressure to demonstrate environmental responsibility, ELC’s rapid progress serves as a benchmark for peers in the sector.
Enhancing Transparency through Ingredient Disclosure
In tandem with its sourcing initiatives, ELC has prioritized supply chain transparency, exemplified by the launch of its corporate ingredient glossary. This comprehensive database, detailing over 100 key ingredients in the company’s product lineup, empowers consumers with essential information while reinforcing ELC's commitment to responsible formulation and traceability.
By fostering greater transparency around the materials used in its products, ELC not only enhances consumer trust but also raises industry standards. "Our environmental and social efforts are integral—enabling innovation, value creation, and operational efficiency while engaging current and future talent," remarked Fabrizio Freda, President and CEO at ELC.
Operational Improvements and Environmental Stewardship
Beyond its sourcing and transparency efforts, ELC has made significant strides in operational excellence, demonstrating a robust commitment to environmental performance. The company has surpassed its 2025 water withdrawal reduction target, achieving a 23% decrease from its fiscal 2019 baseline across direct manufacturing sites. Furthermore, ELC has diverted an impressive 99.8% of its industrial waste from landfills globally, embodying a circular approach to resource utilization.
The firm’s sustainability initiatives extend to its infrastructure with the establishment of new LEED-certified locations and the implementation of solar energy solutions in Belgium and Japan. Additionally, ELC is expediting its fleet electrification program, with a goal of transitioning 100% of its global corporate fleet to electric vehicles by 2030. "Our social impact and sustainability efforts reflect our core values and are driven by the creativity and resilience of our talented teams worldwide," said William P. Lauder, Executive Chairman at ELC.
Progress in Sustainable Packaging
ELC’s commitment to sustainability is further evidenced in its packaging initiatives. In fiscal 2024, 71% of the company’s packaging was classified as recyclable, refillable, reusable, recycled, or recoverable, progressing towards its ambitious target of 75-100% sustainable packaging by 2025. This multifaceted strategy aligns with circular economy principles, aiming to minimize waste while exploring innovative reuse and recycling models. As consumer demand for sustainable packaging intensifies, ELC's proactive measures reinforce its position as a leader in the cosmetics industry.
In summary, The Estée Lauder Companies is not merely adapting to the demands of sustainability but is actively setting a precedent for responsible practices across its supply chain. By integrating sustainable sourcing, operational excellence, and transparent communication, ELC exemplifies how businesses can lead the charge toward a more sustainable future.