CORPORATE RESPONSIBILITY DATA SUMMARY 2012
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2012 CORPORATE RESPONSIBILITY DATA SUMMARY
ABOUT This Report Avon is committed to making the world a more beautiful and healthy place—through our products, our people, our environmental sustainability actions and our ability to empower millions of women around the world through our global philanthropy efforts (Avon Breast Cancer Crusade and Speak Out Against Domestic Violence). This report provides a summary of the 2012 data updates made to the online corporate responsibility report on avoncompany.com. Avon published its last full report in 2011 and will publish its next full report in 2014, which will reflect 2013 data updates. AVON 2012 Corporate Responsibility Data Summary | ABOUT 2
Progress on Below is an update on our progress toward achieving our goals in 2012. GOALS Supply Chain Giving Packaging GOAL: GOAL: GOAL: $1 billion Discontinue Conduct audits for 95% of third-party manufacturers in total funds donated by 2013 the use of polyvinyl chloride (PVC) in beauty packaging across all markets by 2015 (TPMs) by 2015 PROGRESS: PROGRESS: PROGRESS: $910 million Efforts Conducted audits of 60% of TPMs (1,164 TPMs) in 2012 (ongoing) donated through the end of 2012 (ongoing) underway to achieve this goal (ongoing) AVON 2012 Corporate Responsibility Data Summary | PROGRESS ON GOALS 3
Environment GOAL: GOAL: GOAL: GOAL: GOAL: 100% of our paper purchased 20% total GHG emissions on 5% 10% waste management 7% water overall intensity increase in recycling from certified and or post an absolute basis from intensity reduction by reduction by 2012 of materials from consumer recycled content Avon operations by 2012 (base year 2008) (base year 2008) manufacturing by sources by 2020 with a 2020 (base year 2005) 2012 (base year 2008) certification preference of FSC (Forest Stewardship Council) PROGRESS: PROGRESS: PROGRESS: PROGRESS: PROGRESS: 75% of Avon’s brochure paper 25% reduction achieved 25% 3% increase achieved reduction in waste 14% water use per unit meets the Avon Paper Promise in 2012 (achieved) in recycling rate per unit in 2012 in 2012 (achieved) (as of the end of FY2012) and (achieved) (not achieved) 55 percent sourced from FSC- 2020 GOAL: REDUCE certified forests (ongoing) WATER INTENSITY BY 40% AVON 2012 Corporate Responsibility Data Summary | PROGRESS ON GOALS 4
Avon is fully committed to living up to our mission to be “the company for women” worldwide. In addition to providing economic opportunity for Avon Representatives, we are committed to recognizing, empowering and advancing women within our ranks. The company’s strategic focus Our PEOPLE on women’s empowerment aligns with the nature of its products and expectations of its diverse customers and stakeholders, as well as with its core mission. Workplace Diversity Associate Resource Groups Women 54.4% of Associates at the Manager Associate Resource Groups (ARGs) are voluntary groups, led by Associates and level or higher are women sanctioned by the company. Avon’s 60.6% 45.5% ARGs are change agents for greater engagement, business improvement, 44.7% of women of of Board of Directors total workforce who are women and talent development across the of Associates at the Director organization. Avon has four Associate level or higher are women Resource Groups in the United States: the Asian Network, Black Professionals Ethnic Minorities Association (BPA), AHORA Latino Network and the PRIDE LGBT (Lesbian, Gay, Bisexual, Transgender) Network. 37.8% 24.1% 18% The Global Inclusion Office, which of US-Based Associates of US-Based Associates at of Board of Directors manages the ARGs, is actively working who identified their the Director level or higher, who are people to expand the networks and locations ethnicity are people who identified their ethnicity of color of color are people of color of the groups to other Avon geographies. AVON 2012 Corporate Responsibility Data Summary | OUR PEOPLE 5
Avon’s environmental sustainability goals focus on absolute GHG emissions, waste, water and green building. We will continue SUSTAINABILITY to evaluate how to reduce the impact of our operations and in the manufacturing of our products. Ongoing Commitment to Reforestation Initiative: Palm Oil Environmental Goals Hello Green Tomorrow Below is Avon’s historical performance to As a significant consumer of paper, Avon Although Avon is not a significant user meet our goal of 20 percent GHG emissions is committed to helping end deforestation of palm oil, because of its impact on reduction by 2020. through internal efforts and our reforestation the environment and communities, we fundraising initiative benefiting our partners, recognize the threat palm oil production In addition to GHG emissions, although Avon The Nature Conservancy and World Wildlife poses and are committed to playing a did not build any new facilities in 2012, we Fund. Projects include helping save two of leadership role and driving influence remain committed to building all new facilities the most critically endangered ecosystems within its sphere. In 2012, Avon supported according to LEED certification standards. Our on earth: the Atlantic Rainforest and the the production of 16,200 metric tons of goals for water and waste can be found on endangered forests of Borneo and sustainable palm oil production through page 4 of this data summary. Sumatra in Indonesia. the GreenPalm program, which is Absolute GHG Emissions (CO2e) - Global Operations exclusively endorsed by the Roundtable 170,000 $2 million 160,000 158, 497 156,341 on Sustainable Palm Oil (RSPO). 153,920 Metric Tonnes 150,000 142,722 141,801 136,751 140,000 136,050 130,000 118,408 donated in 2012 from Hello Green 120,000 110,000 Tomorrow (bringing the total raised 100,000 since 2010 to $5.5 million) 2005 2006 2007 2008 2009 2010 2011 2012 AVON 2012 Corporate Responsibility Data Summary | SUSTAINABILITY 6
PRODUCTS Supply Chain Product Labeling Animal Welfare Our Supplier Code of Conduct guides all Avon’s Consumers trust Avon’s The safety of our consumers is of primary concern to manufacturing processes, including Avon facilities products to be safe and Avon. We are committed to selling only safe products, and third-party manufacturers. The Code focuses of high quality, and Avon using only safe ingredients in our cosmetics products on product safety and quality, environmental aims to maintain that trust and complying with applicable regulations in the performance and human rights; external audits through accurate labeling in more than 100 countries in which Avon products are measure compliance with these standards. Our compliance with regulatory sold. Within this commitment, we also have a deep aim is to conduct audits for all priority supplier guidelines. To ensure that respect for animal welfare. facilities by the end of 2015. consumers know what ingredients are used in Avon does not conduct nor request animal testing in Approximately products, as well as how order to substantiate the safety or efficacy of any of 50% Externally, Avon to safely use and dispose its products or raw ingredients. Some products may has conducted training sessions of them, Avon provides be required by law in a few countries to undergo of Avon Supply Chain and seminars on information for 100 percent additional safety testing, including animal testing. In Associates participated the Code with of the beauty products both these instances, Avon will first attempt to persuade the 60% in formal training on the Code through online at avon.com and requesting authority to accept non-animal test data. 2012, with priority for directly on the packages. those most directly of factories, with a responsible for focus on the most Please visit avoncompany.com/corporatecitizenship relevant activities. critical partners. for Avon’s full animal welfare policy. AVON 2012 Corporate Responsibility Data Summary | PRODUCTS 7
Corporate GOVERNANCE Avon believes good governance In addition, our Corporate Governance serves as a foundation for corporate Guidelines describe the Board of responsibility and is committed to Directors’ governance policies and continually improving policies and practices, including standards for Board practices to ensure transparency independence, qualifications for Board and accountability of the company’s and Committee membership, and management. Avon released a new the process for evaluating Board and comprehensive Code of Conduct in CEO performance. You can learn 2013, which is intended to promote more about our Code of Conduct, ethical and lawful behavior and proper Ethics & Compliance overall, and conduct. We also require Associates our Board of Directors at worldwide to participate in in-person avoncompany.com. and online training focused on Avon’s policies, procedures and compliance with the law. AVON 2012 Corporate Responsibility Data Summary | CORPORATE GOVERNANCE 8
Avon global philanthropy, led by the U.S.-based Avon Foundation for Women, has donated funds in more than 50 countries for causes most important to Global Philanthropy women. Today, Avon philanthropy focuses on funding breast cancer research and access to care through the Avon Breast Cancer Crusade, and efforts to reduce domestic and gender violence through its Speak Out Against Domestic Violence program. Breast Cancer, Domestic Violence Overall Giving and Grants $910 million in grants donated by Avon globally through 2012 for programs to advance breast cancer research and access to care programs; and fund domestic violence education, direct service and prevention programs AVON 2012 Corporate Responsibility Data Summary | GLOBAL PHILANTHROPY 9
Breast Cancer Domestic Violence $780 million $302 million $50 million donated globally through 2012 from raised globally through 2012 from the sale donated globally through 2012 through the Avon Breast Cancer Crusade of Avon fundraising Pink Ribbon products Avon Speak Out Against Domestic Violence $29 million raised globally through 2012 through the sale of domestic violence Empowerment products $436 million raised in 2012 from Avon Walks for Breast Cancer in U.S. and Avon Walk Around 18 million the World for Breast Cancer 500 agencies U.S. Domestic Violence women around the world through 2012 who have received free breast cancer received funds from the Avon Foundation for screenings as a result of Avon’s breast awareness, education, direct services and cancer programs prevention programs through 2012 $40 million 50 countries 891 grants Domestic Violence donated in 2012 by the Avon Foundation that held Avon Walk Around the awarded by the Avon Foundation for domestic for Women to fund breast cancer research World for Breast Cancer events violence awareness, education, direct services and access to care in the United States. and prevention programs through 2012 (73% access to care/ 27% breast cancer research) AVON 2012 Corporate Responsibility Data Summary | GLOBAL PHILANTHROPY 10
For more information, please visit: avoncompany.com avoncompany.com/corporatecitizenship avonfoundation.org
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