Why Estée Lauder Leads the way in Sustainable Sourcing

The Estée Lauder Companies (ELC) has emerged as a sustainability leader in the cosmetics industry, with its Social Impact and Sustainability (SI&S) Report for 2024 showcasing impressive strides across its global supply chain and operations.

From achieving critical responsible sourcing milestones to driving operational excellence in energy, water and waste management, ELC is setting a new benchmark for environmental stewardship and supply chain transparency.

These strategic initiatives are aimed at significantly reducing greenhouse gas emissions throughout its value chain and form part of the company's overarching Climate Transition Plan. 

Sustainable sourcing breakthroughs

A standout achievement for ELC has been its rapid progress on sustainable palm oil sourcing.

The company has now ensured that 95% of its palm-based ingredients are certified sustainable by the Roundtable on Sustainable Palm Oil (RSPO) physical supply chain – a goal originally set for 2025.

"In fiscal 2024, we achieved several sustainability goals ahead of schedule, including surpassing our water withdrawal targets, publishing our new corporate ingredient glossary and reaching our palm oil objectives before our 2025 deadline," says Nancy Mahon, Chief Sustainability Officer at ELC.

This milestone underscores ELC's commitment to responsible sourcing and deforestation-free supply chains, a critical priority for the cosmetics industry.

By working closely with its supplier network and leveraging RSPO certification, the company has been able to rapidly transform its palm oil footprint, setting a new standard for the sector.

Supply chain transparency through ingredient disclosure

In parallel, ELC has made significant strides in enhancing supply chain transparency through its new corporate ingredient glossary, a comprehensive database featuring more than 100 key ingredients used across the company's product portfolio.

This level of ingredient disclosure not only empowers consumers with greater transparency, but also demonstrates ELC's commitment to responsible formulation and supply chain traceability.

By openly sharing information about the materials that go into its products, the company is raising the bar for the industry and building trust with increasingly conscious consumers.

"Our environmental and social efforts are integral – enabling innovation, value creation and operational efficiency, while engaging with current and future talent," says Fabrizio Freda, President and CEO at ELC.

"In the past year, we continued our efforts, taking important steps to align our practices with our goals and seek opportunities to further embed these principles into how we do business."

Packaging sustainability progress

Alongside its sourcing and transparency initiatives, ELC has continued to make solid progress on its packaging sustainability targets.

In fiscal year 2024, 71% of the company's packaging was recyclable, refillable, reusable, recycled or recoverable - a significant step towards its 2025 goal of 75-100% sustainable packaging.

This multifaceted approach to packaging aligns with the principles of the circular economy, reducing waste while also exploring innovative reuse and recycling models.

As consumer demand for sustainable packaging intensifies, ELC's ability to deliver on this front reinforces its position as an industry leader.

Operational excellence and environmental stewardship

Beyond its supply chain initiatives, ELC has also demonstrated impressive operational improvements that bolster its environmental performance.

The company has achieved its 2025 water withdrawal reduction target ahead of schedule, recording a 23% decrease from its fiscal 2019 baseline across direct manufacturing sites.

Furthermore, ELC has made significant strides in waste management, diverting 99.8% of its industrial waste from landfills across global operations.

This circular approach to resource use exemplifies the company's commitment to minimizing its environmental footprint.

The company's sustainability efforts extend to its infrastructure as well, with the completion of new LEED-certified locations and the addition of solar installations in Belgium and Japan. ELC has also accelerated its fleet electrification programme, aiming to transition 100% of its global corporate fleet to electric vehicles by 2030.

"As we endeavour to build a stronger and more agile company, we remain guided by the values that have shaped us over the years — generosity of spirit, innovation, willingness to challenge the status quo and commitment to acting responsibly," says William P. Lauder, Executive Chairman at ELC.

"Our social impact and sustainability efforts reflect these values and are made possible by the creativity and resilience of our talented teams around the world."

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