OF DOING THE BE AUT Y - BUSINESS REPORT 2018 UPDATE - Avon Worldwide

Page created by Sean Perry
 
CONTINUE READING
OF DOING THE BE AUT Y - BUSINESS REPORT 2018 UPDATE - Avon Worldwide
T H E B E AU T Y
OF DOING
GOOD       RESPONSIBLE
           B U S I N E S S R E P O R T
            2 0 1 8 U P D AT E
OF DOING THE BE AUT Y - BUSINESS REPORT 2018 UPDATE - Avon Worldwide
CONTENTS               RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                                                          Introduction | 2

Introduction

A message from
our CEO

Avon at a glance

2018 highlights

Our responsible
business commitment

How we approach
responsible business
at Avon
                                                                 2 INTRODUCTION                          22 	IMPROVE OUR
Be the company                                                                                                ENVIRONMENTAL
for women
                                                                                                              IMPACT
Improve our                                                      3    A message from our CEO             24   Carbon emissions
environmental                                                   4    Avon at a glance                   25   Water stewardship
 impact
                                                                 5    2018 highlights                    26   Waste and recovery
 Operate                                                        6	Our responsible business             27   Sustainable packaging
responsibly                                                        commitment                           28   Tackling deforestation
                                                                 7	How we approach responsible
About this report                                                   business at Avon

                                                                 8 	BE THE                              29 	OPERATE
                                                                     COMPANY FOR                              RESPONSIBLY
                                                                     WOMEN
                                                                 9	Championing women’s economic         30	Great place to work
                                                                    participation                        33   Ethics & compliance
                                                                 12   Advancing women in our workforce   34   Responsible suppliers
                                                                 15   Our support for women’s causes     36   Health & safety
                                                                                                         37   Product integrity

                                                                                                         38 	ABOUT THIS
                                                                                                              REPORT
OF DOING THE BE AUT Y - BUSINESS REPORT 2018 UPDATE - Avon Worldwide
CONTENTS               RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                                                                                                       Introduction | 3

Introduction

A message from
our CEO

Avon at a glance
                       A MESSAGE
2018 highlights        FROM OUR CEO
Our responsible
business commitment

How we approach
responsible business
at Avon                                                    Avon is more than just a beauty brand. We have been making a           A better world for women also means focusing on our impact on
                                                           positive difference to the lives of women for over 130 years. This     the planet. 2018 was a watershed year for the environment: we
Be the company                                             continues to be the purpose that drives our company today: we          learned more about the devastating impact of plastic pollution on
for women                                                  want to build a better world for women, through women.                 our oceans, and the growing threat from climate change sparked
                                                                                                                                  unprecedented public action. So, in building a modern and relevant
Improve our                                                Supporting women’s economic participation is baked into the            Avon, we also consider carefully our environmental impact and
environmental                                             DNA of our business. It is both our ‘why’ and our ‘how’. We support    how we ensure we sell responsibly sourced and made products.
 impact                                                   our Representatives to achieve success on their own terms. With
                                                           minimal upfront investment, our Representatives are able to            We have made significant progress towards our 2020 goals to
  perate
 O                                                         start their own businesses, selling high quality, great value beauty   reduce our environmental impacts. We recognise that much more
responsibly                                               products in ways that work for them. As we undergo a business          remains to be done and we are currently developing new goals
                                                           transformation, a central pillar of our ‘Open Up’ Avon strategy is     that will help us further reduce our impact beyond 2020.
About this report                                          accelerating support for our Representatives, helping more of
                                                           them to build even more successful businesses.                         I invite you to read further to learn about the many actions we took
                                                                                                                                  in 2018 – and to see some highlights of the work we have done so
                                                           We know women can only earn and be economically active if they         far in 2019 – in pursuit of our purpose to build a better world for
                                                           are healthy and safe, and that’s why our support for the causes        women, through women.
                                                           that matter most to women is so important. In 2018, our Pink Light
                                                           Project reached millions of women globally, spreading the word
                                                           about the risks and signs of breast cancer and how to take action.
                                                           Also in 2018, we launched the Avon Promise to Help End Violence
                                                                                                                                  Jan Zijderveld
                                                           Against Women and Girls, which expands our previous focus              Chief Executive Officer
                                                           on domestic violence to address broader challenges rooted in           Avon Products, Inc.
                                                           gender-based violence.

                                                           We hope to do even more of this great work in 2019 and beyond,
                                                           and will be guided by stand4her, the plan we launched earlier this
                                                           year, to create a better world for women, through women. We
                                                           want to break down the barriers still holding women back – from
                                                           economic participation to self-expression to the freedom to live
                                                           healthy and safe lives.
OF DOING THE BE AUT Y - BUSINESS REPORT 2018 UPDATE - Avon Worldwide
CONTENTS               RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                                                                                                               Introduction | 4

Introduction

A message from
our CEO

Avon at a glance
                       AVON AT A GLANCE                                                                      IN 2018:
2018 highlights
                       For 130 years Avon has stood for women: providing innovative, quality                                               ,000 as
Our responsible        beauty products which are primarily sold to women, through women.                                                 20       s

                                                                                                                                                     oc
                                                                                                                                     r
                       Millions of independent sales Representatives across the world sell iconic

                                                                                                                                  Ove
business commitment
                                                                                                                                                                       Over

                                                                                                                                                       iates wo
                       Avon brands such as Avon Colour and ANEW through their social networks,
How we approach        building their own beauty businesses on a full- or part-time basis. Avon
responsible business
at Avon                supports women’s empowerment, entrepreneurship and well-being and                                                   rld
                       has contributed over $1 billion to women’s causes through Avon and the
                                                                                                                                              wide

Be the company         Avon Foundation for Women.
for women

Improve our
                                                                         74%                                            Total revenue

                                                                                                                        US$ 5.6bn
environmental
 impact                                                                 Beauty
                                                                         Skincare, fragrance, colour
 Operate
responsibly

About this report
                                                                                                                                                                           #1
                                                                                                                                                                   word of mouth beauty
                                                                                                                                                                       brand offline
                                    2018                                                                                  Over
                                  NET SALES
                              by product categories
                                                                                                                          US$ 1bn
                                                                                                                          donated to fight breast
                                                                                                                          cancer, violence
                                                                                                                                                                                     Products

                                                                         26%
                                                                                                                          against women and
                                                                                                                                                                                     distributed in

                                                                                                                                                                                     21
                                                                                                                          girls and other causes
                                                                                                                                                                  Sales
                                                                         Fashion                                                                                  operations
                                                                                                                                                                  in                 additional

                                                                                                                                                                  56
                                                                         Jewellery, watches, apparel,
                                                                                                                                                                                     countries and
                                                                         footwear, accessories, children´s
                                                                                                                                                                                     territories
                                                                         Home                                                                                     countries
                                                                         Gifts & decorative products,                                                             and territories.
                                                                         housewares, entertainment                                                                View the
                                                                         & leisure, children’s, nutritions                                                        worldwide
                                                                                                                                                                  markets here
OF DOING THE BE AUT Y - BUSINESS REPORT 2018 UPDATE - Avon Worldwide
CONTENTS               RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                                                                             Introduction | 5

Introduction

A message from
our CEO

Avon at a glance
                       2018 HIGHLIGHTS
2018 highlights

Our responsible
                                                                                MANAGE
business commitment
                                 BE THE COMPANY                                                                                 OPERATE
                                                                                ENVIRONMENTAL
How we approach                  FOR WOMEN                                                                                      RESPONSIBLY
responsible business
at Avon
                                                                                IMPACT
Be the company
for women                                                                       Reduced greenhouse gas emissions                Original signatories of the United Nations
                              59%  of Avon’s global workforce are women.       by 15.4% on an absolute basis, from             Standards of Conduct for Business to tackle
Improve our                                                                     our 2005 baseline                               discrimination against LGBTQIA+ people.
environmental
 impact

                                         Launched the global Pink Light                                                         Avon in Poland, South Africa, and
  perate
 O
responsibly
                                         Project to educate women about
                                         breast cancer, which had 337 million
                                                                                Increased our recycling rate to   93%.          the Czech Republic were all named
                                                                                                                                Top Employers for 2018.
                                         media impressions worldwide
About this report
                                         during Breast Cancer Awareness
                                         Month 2018.

                                                                                Eliminated PVC (polyvinyl chloride) packaging   Had a more than 99.5% completion rate
                                                                                in all finished beauty products produced for    for Ethics & Compliance online training,
                                                                                our brands.                                     which more than 1,200 new associates
                                                                                                                                received when they joined Avon.
                                              Launched the Avon Promise
                                              to Help End Violence Against
                                              Women and Girls, and
                                              contributed more than $2          91%                                             Conducted 658 supplier audits as part of our
                                              million globally to support       of Avon’s brochure paper met                    social responsibility monitoring programme.
                                              victims and their families.       our Paper Promise goal.

                                         Avon Foundation for Women              Launched a mobile and e-interactive
                                         nearly doubled its commitment to       shoppable brochure which has been rolled        Recorded only
                                         the Global Scholarship Programme       out in 55 markets, helping to significantly     48 safety incidents.
                                         to $500,000 per annum.                 reduce paper use.
OF DOING THE BE AUT Y - BUSINESS REPORT 2018 UPDATE - Avon Worldwide
CONTENTS               RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                                                                                                                 Introduction | 6

Introduction

A message from
our CEO

Avon at a glance
                       OUR RESPONSIBLE
2018 highlights        BUSINESS COMMITMENT
Our responsible
business commitment

How we approach
responsible business
at Avon                In assessing the impact Avon has on the     UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (SDGS)              	BE THE COMPANY
                       world, we identified eight of the United
                                                                                                                                      FOR WOMEN
Be the company         Nations Sustainable Development Goals
for women              (SDGs) where, through our business model,                                                                    We have a unique opportunity to use our business model to address the
                       unique purpose and operations we can                                                                         economic and other barriers that hold women back today. We help women
                                                                                          GENDER     DECENT WORK AND                succeed, in their own way and on their own terms. We also support causes
Improve our            make a specific contribution.                                      EQUALITY   ECONOMIC GROWTH                that matter most to women.
environmental
 impact               “Being the company for women” is front                                                                       DRIVING CHANGE FOR WOMEN’S ECONOMIC EMPOWERMENT / BUILDING
                                                                                                                                    A MOVEMENT OF FEMALE ENTERPRENEURS / ADVANCING WOMEN IN OUR
                       and centre of our responsible business                                                                       WORKFORCE / OUR SUPPORT FOR WOMEN’S CAUSES
 Operate              commitment. We aim to democratise
                                                                        GOOD HEALTH
responsibly           beauty, help women succeed and support           AND WELL- BEING
                       causes that matter most to them. We
                                                                                                                   RESPONSIBLE
                                                                                                                   CONSUMPTION      	WHILST IMPROVING OUR
                                                                                                                   AND PRODUCTION
About this report      do this whilst working to improve our                                                                          ENVIRONMENTAL IMPACT
                       environmental impact and operating as
                       a company that makes and sells quality,                                                                      We work to reduce the environmental footprint of our global operations
                                                                                                                                    and products, and we are committed to tackling deforestation through the
                       responsibly sourced products. In our                                                                         work we do on paper and palm oil.
                                                                      PEACE AND
                       operations we strive to make a positive        JUSTICE STRONG
                       impact, leaving the world better than          INSTITUTIONS                                                  REDUCING CARBON EMISSIONS / WATER STEWARDSHIP / WASTE AND
                                                                                                                      CLIMATE       RECOVERY / SUSTAINABLE PACKAGING / TACKLING DEFORESTATION
                       we found it.                                                                                   ACTION

                                                                                                                                    	
                                                                                                                                     AND OPERATING
                                                                                                                                     RESPONSIBLY
                                                                                          LIFE        LIFE BELOW                    We maintain a high level of ethical conduct and integrity in our activities,
                                                                                          ON LAND     WATER                         through greater transparency and accountability in our supply chain, the
                                                                                                                                    ingredients we use in our products, and the health, safety and development
                                                                                                                                    of our colleagues.

                                                                                                                                    GREAT PLACE TO WORK / ETHICS & COMPLIANCE / RESPONSIBLE
                                                                                                                                    SUPPLIERS / PRODUCT INTEGRITY / HEALTH & SAFETY
OF DOING THE BE AUT Y - BUSINESS REPORT 2018 UPDATE - Avon Worldwide
CONTENTS               RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                                                                                 Introduction | 7

Introduction

A message from
our CEO

Avon at a glance
                       HOW WE APPROACH RESPONSIBLE
2018 highlights

Our responsible
                       BUSINESS AT AVON
business commitment

How we approach
responsible business
at Avon                RESPONSIBLE BUSINESS GOVERNANCE               MATERIAL ISSUES                               STAKEHOLDER ENGAGEMENT
                       Corporate responsibility and sustainability   This report focuses on the topics most        We maintain a dialogue with all our
Be the company         is overseen by the Director of Corporate      material to Avon and our stakeholders.        stakeholder groups so we can better
for women              Social Responsibility & Sustainability. The   We routinely gather input from a variety      understand and incorporate their
                       Director of Corporate Social Responsibility   of internal and external sources to ensure    expectations into our business strategies
Improve our            & Sustainability works in partnership with    we are apprised of emerging issues.           and operations.
environmental         relevant executives and teams across the
 impact               business. The Director is also the chair      Our sources include:                          In 2019, we will run a survey with key
                       of the Corporate Responsibility Steering      • Current and planned legislation             stakeholders to define what issues are
 Operate              Committee.                                    • Feedback and insights from associates,     material to them. This will be published
responsibly                                                            Representatives and customers              in 2020.
                       The Steering Committee meets several          • Shareholder communications
About this report      times a year to review the progress of key    • Traditional media coverage
                       performance indicators, discuss emerging      • Online and social media outlets
                       issues and risks arising from stakeholder     • Civil society and industry trade groups
                       engagement, agree upon resource               • Environmental, social and corporate
                       allocation and prioritisation and ensure         governance reporting frameworks
                       corporate responsibility is integrated        • Trending and emerging issues of relevance
                       throughout the business. The Committee        • Avon business objectives and strategies,
                       is composed of senior executives from            policies, programmes and risk register
                       business functions such as: supply chain,
                       research and development, environmental
                       affairs and regulations. Direction and
                       decision-making on key issues are
                       discussed with and approved by relevant
                       leaders from Avon’s Executive Committee
                       and Management Committee.
OF DOING THE BE AUT Y - BUSINESS REPORT 2018 UPDATE - Avon Worldwide
CONTENTS            RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                                                           Be the company for women | 8

Introduction

Be the company
for women

Championing
women’s economic
participation

Advancing women
in our workforce

Our support for
women’s causes

Improve our
environmental
 impact

                                                              Our core purpose of providing a flexible, accessible earning opportunity
Operate
                                                              is as relevant today as it was when Avon was founded 130 years ago.
responsibly
                                                              Earnings opportunities for women still fall far behind those of men. Studies
                                                              suggest that unlocking women’s full economic potential could increase
About this report                                             global GDP from $12 to $28 trillion a year 1. We want to be an agent of
                                                              change, to break down barriers and open up opportunities – for the
                                                              women who work with us and those who buy our products.

                                                              The launch of stand4her in 2019 builds on our legacy of supporting
                                                              women by providing greater and more meaningful opportunities for our
                                                              Representatives, customers and associates, and for the women in our supply
                                                              chains and the communities in which we operate.

                                                               McKinsey & Company, The Power of Parity: How advancing women’s equality can add $12 trillion
                                                              1

                                                               to global growth, September 2015

                                                              9         Championing women’s economic participation

                                                              12        Advancing women in our workforce

                                                              15        Our support for women’s causes
OF DOING THE BE AUT Y - BUSINESS REPORT 2018 UPDATE - Avon Worldwide
CONTENTS            RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                                                                                 Be the company for women | 9

Introduction

                    CHAMPIONING WOMEN’S
Be the company
for women

                    ECONOMIC PARTICIPATION
Championing
women’s economic
participation

Advancing women
in our workforce

Our support for
women’s causes
                    Avon has always been a pioneer of             flexible working options, to the importance

                                                                                                                   77%
                    women’s economic participation. Since         of mentoring and access to life-long
Improve our                                                                                                                            of women say that working
                    1886 Avon Representatives have gained         learning in supporting participation in the
environmental                                                                                                                         increases their confidence
                    financial independence by selling beauty      workforce. The consensus of the group was
 impact
                    products – long before the concepts of        that Avon is in a unique position to affect
                    microfinance and flexible working existed.    many of these key areas, especially through
Operate
                    To this day, our model still holds true. We   supporting and promoting our network of
responsibly
                    champion women’s economic participation       over five million Representatives.
                    by supporting our Representatives to
About this report   achieve success on their own terms. With
                    minimal upfront investment our network of       LOOKING FORWARD                                65%                 of women say that working
                                                                                                                                       has improved the way they
                    entrepreneurs around the world can start        In 2019, Avon launched stand4her,                                  are treated by others
                    their own businesses, selling products to       which aims to help over 100 million
                    their networks of customers, in ways that       women each year break down the
                    work for them and their lifestyles.             barriers still holding them back by
                                                                    advancing their earning potential
                    In 2018, we hosted two events in London
                    and New York which brought together
                                                                    through the power of beauty. This was
                                                                    based on research commissioned                  74%                say that working has increased
                                                                                                                                       their ability to be a role model
                    leading experts from organisations              by Avon, in partnership with Oxford
                                                                                                                                       for their children
                    including Oxford Economics, the ILO,            Economics, which showed that despite
                    UN Women and the World Association of           the global increase in flexible working
                    Girl Guides and Girl Scouts. The panellists     patterns, many women still feel they
                    discussed the status of women’s economic        are held back from running their own        The ‘Freedom to Earn’ pillar in stand4her is our response
                    participation across the world, covering        businesses. The report also illustrates     to these challenges and sets out our vision for change. It is
                    issues from the increased need for more         that the benefits of work are far greater   a commitment to support women to improve their earning
                                                                    than just economic benefits, with a         potential through the power of beauty.
                                                                    wide-reaching social ripple effect:
OF DOING THE BE AUT Y - BUSINESS REPORT 2018 UPDATE - Avon Worldwide
CONTENTS            RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                                                                       Be the company for women | 10

Introduction

Be the company
for women

Championing
women’s economic
participation

Advancing women
in our workforce

Our support for
women’s causes

Improve our
environmental
 impact
                    RABYIA’S STORY, TURKEY                                           AVON FOUNDATION SCHOLARSHIP PROGRAMME
Operate
responsibly        When Rabyia’s husband’s business was damaged after               The Avon Foundation offers a Global Scholarship
                    the 1999 earthquake, a friend told her about Avon.               Programme to support the education of Avon
About this report   Having left school after fifth grade, she knew nothing           Representatives and their families. In 2018, the Avon
                    about working when she first started, but everyone in her        Foundation nearly doubled its commitment to the
                    family supported her, and she was determined to use her          Programme to $500,000 per annum, supporting up to
                    campaigns to pay the bills.                                      200 scholarships a year, and broadened the eligibility
                                                                                     criteria to include all Representatives and their children
                    Now a fully-fledged beauty entrepreneur, she says of             and grandchildren. The total funding from the Avon
                    her time with the company: “Avon didn’t care that I didn’t       Foundation to the programme since its inception stands
                    have a formal education, they just saw my desire and             at nearly $1.5 million.
                    talent. They trusted me to build my business, and I now
                    have nearly 3,000 Representatives who work under me.             “I am pleased to thank
                    I want to tell every woman in Turkey about myself so
                    that they can also believe in themselves. Even when I get
                                                                                       the Avon Foundation for
                    older, you will see me in the marketplace. I will not retire.”     Women for awarding me the
                    Her story shows that when individual entrepreneurial
                                                                                       scholarship for the 2018/19
                    talent meets a company with a purpose like Avon, we can            academic year. It will be fully
                    work together to break down the barriers to success for
                    women worldwide.
                                                                                       utilised to continue my studies
                                                                                       in Nutrition at the University
                                                                                       of Mendoza, Argentina.”
                                                                                     2018 recipient – Iara Sol Noto Aguirre from Argentina
CONTENTS            RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                                                                                                  Be the company for women | 11

Introduction

                    OPENING UP AVON FOR
Be the company
for women

                    OUR REPRESENTATIVES
Championing
women’s economic
participation
                                                                                                Avon UK saw outstanding results from its new Representative Starter Kits. In
Advancing women                                                                                 just eight days, nearly 4,000 Representatives ordered the kits, which contain
in our workforce
                                                                                                a selection of products, samples and sales materials, designed to help them
                    Avon has an unparalleled record of supporting women,                        jump-start their Avon businesses. With four tiers, new Representatives can
Our support for     providing earning opportunities, helping build confidence                   choose the one that best suits their business ambitions and budget and sets up
women’s causes
                    and networks and enabling them to be successful                             Avon Representatives with the tools they need to succeed in their new businesses.
                    independent business owners. Our Representatives
Improve our
                    provide millions of customers all over the world with
environmental
                    personalised support and products they love.
 impact
                    In 2018 we announced an incremental $200 million
Operate
                    investment to digitise our sales channel and operations.
responsibly
                    This includes new tools to help our Representatives move
                    their businesses online, such as launching a fully digitised,
About this report   mobile-enabled e-interactive brochure. Representatives
                    can now connect quickly with their customers with a
                    personalised digital shopping cart, and the e-brochure
                    also includes real-time analytics to help track best-selling    Avon Representatives in Italy
                    products and individual preferences, and to respond             enjoyed the benefits of the
                                                                                    MyAvonApp, which gives easy
                    to Representative and customer needs. It all helps our
                                                                                    access to information they need
                    Representatives to gain more reward for less effort.
                                                                                    to run their beauty businesses,
                                                                                                                           Following a successful pilot in Delhi, Avon India
                                                                                    24/7. In one click, Representatives
                                                                                                                           established a new training initiative to increase the
                                                                                    can check their balance, delivery
                                                                                                                           number of Avon beauty businesses being set up
                                                                                    and order status, access the
                                                                                                                           across India. The new initiative supports Avon
                                                                                    online brochure and place orders.
                                                                                                                           Representatives to grow their businesses using
                                                                                    Thanks to the new self-service
                                                                                                                           peer-to-peer knowledge sessions. The initiative
                                                                                    app, Representatives also get
                                                                                                                           also targeted potential newcomers to Avon and
                                                                                    instant answers to their queries.
                                                                                                                           during the pilot phase, 50% of participants started
                                                                                                                           their own beauty business because of attending an
                                                                                                                           event. The programme will now be scaled up, with
                                                                                                                           more events in more locations, to support other
                                                                                                                           women to do the same.
CONTENTS            RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                                                                        Be the company for women | 12

Introduction

                    ADVANCING WOMEN
Be the company
for women

                    IN OUR WORKFORCE
Championing
women’s economic
participation

Advancing women
in our workforce

Our support for
women’s causes
                    We strive to address the needs and aspirations of our
                    female associates, provide them with the opportunity and
Improve our
                    working conditions to thrive, and foster an equitable and
environmental
                    inclusive workplace.
 impact

Operate
responsibly        PERCENTAGE OF WOMEN (2017)                                    AVON IS A FOUNDING PARTNER OF CATALYST’S CEO
                                                                                  CHAMPIONS FOR CHANGE
                                                                                  Avon is a founding partner of Catalyst’s CEO Champions
About this report
                                                           62% 59%                for Change initiative that brings together more than 50
                                                                                  global CEOs and senior leaders to support the acceleration
                                                41%                               of diversity, inclusion and gender equality. The founding
                     27%          29%                                             companies of Catalyst Champions for Change represent
                                                                                  more than nine million employees and are responsible for
                                                                                  more than $1.5 trillion dollars in revenue globally. They have
                                                                                  all committed to be transparent and share their progress
                     Board      Executive and   Leaders   Managers     Global     on relevant issues. Avon and its fellow Catalyst partners
                                management                            Workforce   are committed to advancing women in the workforce.
                                 committee                                        Catalyst also released a report showing that its member
                                                                                  companies collectively have a higher representation of
                    Women are well represented among our 20,000+                  women in leadership positions at every level than their
                    associates. In fact, women are in the majority in most        global peers.
                    areas of our company, constituting 59% of our overall
                    workforce at the end of 2018. However, similar to most        Avon CEO Jan Zijderveld was one of the initiative’s 50 CEOs
                    large global organisations, we do see a decrease              championing this important agenda. He said: “We want to
                    in representation at the most senior levels of our            build a world where everyone can succeed. That’s what I
                    organisation. We recognise that this needs to change,         call purpose. We need participation from everyone to be
                    and are committed to supporting women in our workplace,       able to unlock the potential and overcome challenges
                    through locally-focused programmes that support women         in the world.”
                    during their career, on return from maternity leave and
                    at other times.
CONTENTS            RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                                                                              Be the company for women | 13

Introduction

Be the company      GLOBAL WOMEN’S STRATEGY
for women           Avon’s Global Women’s Strategy (GWS), first developed in
                    2014, supports our overarching ambition to be the leading    LOOKING FORWARD
Championing         employer for women globally and sets out our approach to     Building on our work in the GWS, Avon is committed to implementing
women’s economic
participation       nurturing an inclusive workforce. The strategy is a global   innovative family-friendly working practices for all associates under
                    framework of standards available to each of Avon’s major     the banner of stand4her.
Advancing women     geographies to adapt and tailor to suit the needs of their
in our workforce    local teams and cultures. It addresses the employment        Understanding how we benchmark externally in terms of gender
                    needs and aspirations of female employees, as well           equality is also a focus. Avon Products Inc. has been accepted to
Our support for
women’s causes      as providing them with the opportunities and working         the Bloomberg Gender-Equality Index (GEI) which distinguishes
                    conditions to thrive at work and through all aspects of      companies committed to transparency in gender reporting and
Improve our         their lives. The GWS spans ten major markets across Latin    advancing women’s equality. As one of 230 companies selected,
environmental      America, Europe and Asia Pacific which together make up      Avon achieved above-benchmark scoring across 67 criteria in a
 impact            around 70% of our employee base.                             survey which awards points for disclosure and examples of best-in-
                                                                                 class practices for investing in women.
Operate            The strategy identifies four key action areas where we can
responsibly        support Avon’s female associates:

                    • Talent pipeline development
About this report
                    • Flexible working policy and practice
                    • Benefits
                    • Pay equity

                    The positive impacts from the GWS are wide-ranging.
                    In 2018, we continued to increase the representation of
                    women in many areas and levels of our workforce and
                    implement the advancement and adoption of a wide range
                    of improved family-friendly practices in major markets.
CONTENTS            RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                     Be the company for women | 14

Introduction

Be the company      LEADING THE WAY ON PAY EQUITY
for women           As the company for women, we have a responsibility to drive progress
                    toward the elimination of pay disparities based on gender.
Championing
women’s economic
participation       To achieve our commitment to equal pay for equal work, we have an
                    established and robust analytic methodology and independent review
Advancing women     of our pay practices to highlight any unexplained gender pay disparities.
in our workforce    This analysis is now a routine part of our compensation review cycle.

Our support for
women’s causes

Improve our
environmental
 impact
                      SPOTLIGHT ON AVON UK’S GENDER ACTION PLAN
Operate              Avon UK’s leadership teams wanted to shine a spotlight on current
responsibly          good practices and identify opportunities to improve gender balance
                      in the workplace.
About this report
                      A series of focus groups and one-to-one interviews were conducted
                      in late 2017, and a Gender Working Group was formed to lead the UK
                      Gender Action Plan. The plan focused on three key areas identified by
                      the focus group feedback:

                      1.   Equip mangers to support career development
                      2.   Provide personal development opportunities
                      3.   Review approach to flexible/agile working

                      Positive actions during 2018 included “Career Week” in June with
                      many workshops and activities open to all managers and associates
                      including sessions on being a successful woman in business. A pilot
                      was also conducted in partnership with Everywoman, giving a small
                      group access to online networking and personal development tools.
                      The positive feedback from the pilot has led to the investment in a
                      wider roll-out of the Everywoman membership in 2019. And finally, the
                      flexible working policy and guidelines were refreshed and updated to
                      better support associates and managers in exploring ways of working
                      that help individuals and teams achieve the best possible balance
                      between achieving work and life goals.
CONTENTS            RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                                Be the company for women | 15

Introduction

                    OUR SUPPORT FOR
Be the company
for women

                    WOMEN’S CAUSES
Championing
women’s economic
participation

Advancing women
in our workforce

Our support for
women’s causes
                    With our network of Representatives, Avon can make a
                    meaningful difference to issues that matter to women.
Improve our
                    We are proud of our history of supporting breast cancer
environmental
                    education and awareness efforts and working with
 impact
                    partners to help end violence against women and girls.
                    Through the Avon Breast Cancer Promise and the Avon
Operate
                    Promise to Help End Violence Against Women and Girls
responsibly
                    our focus is on awareness and education. We raise funds
                    through product sales and events, as well as leveraging our
About this report   communications channels and reach to millions of women
                    to share vital life-saving information and resources.

                      The Avon Foundation for Women (“Avon Foundation”), founded in 1955, is a
                      public charity that tackles the causes that matter most to women, taking a
                      female-centric approach to break down traditional barriers and build a better
                      future for women. Its ethos is based on the belief that the greater the support,
                      the more empowered women are able to take control of their own safety and
                      health. Over the last six decades Avon and the Avon Foundation have contributed
                      over $1 billion to the causes that matter most to women. Working in partnership
                      with affiliate Avon Foundations and Avon teams around the world, the Avon
                      Foundation for Women is a driving force behind charitable, scientific, educational
                      and humanitarian work that improves the lives of women and their families.
CONTENTS            RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                                                                         Be the company for women | 16

Introduction

                    AVON BREAST
Be the company
for women

                    CANCER PROMISE
Championing
women’s economic
participation

Advancing women
in our workforce

Our support for
women’s causes

Improve our
environmental
 impact                                                                             $10m                                      260,000
                                                                                                                               women received free breast cancer
Operate                                                                             distributed globally in 2018 to support   screenings
responsibly        Avon has been at the forefront of the fight against breast       the promise through grants and
                    cancer since 1992. Over the last 26 years, Avon and the

                                                                                                                               50.1m
                                                                                     donations, education campaigns
About this report   Avon Foundation for Women have donated more than
                                                                                     and other awareness events
                    $800 million to breast cancer causes around the world,
                    educated over 200 million women about the disease, and

                                                                                   1,800+
                    funded breast health screening for over 20 million women.                                                  people reached about the
                                                                                                                               breast cancer cause, through
                    With the support of the Avon Foundation, we renewed our
                                                                                                                               digital channels, events, grants
                    global commitment to the breast cancer cause with the
                                                                                   events globally by markets delivering the   and donations and cause
                    launch of the Avon Breast Cancer Promise in 2017, a multi-
                                                                                   promise and over 677,000 attendees          messaging in printed materials
                    year pledge which aims to educate 100 million women
                    each year and ensure that every woman knows the risks

                                                                                                           337m
                    and signs of breast cancer, how and when to take action to
                    protect her breast health, and where to go for help.

                    With this new global platform, we drove significant increase
                                                                                                           media impressions through Breast
                    in the reach of our campaign messages in 2018, reaching
                                                                                                           Cancer Awareness Month 2018 and
                    an estimated 50.1 million people with breast health
                    awareness information.                                                                 the Pink Light Project
CONTENTS            RESPONSIBLE BUSINESS REPORT 2018 UPDATE               Be the company for women | 17

Introduction

Be the company      ADVISORY NETWORK
for women           In 2018, the Avon Foundation created the Global
                    Breast Cancer Advisory Network, bringing
Championing         together representatives from leading breast
women’s economic
participation       cancer organisations from around the world to
                    discuss how to save lives and make a difference
Advancing women     to women worldwide. The Advisory Network offers
in our workforce    insight on relevant issues and advice on how best
                    to deliver the commitment of the Avon Breast
Our support for
women’s causes      Cancer Promise. Countries represented on the
                    Advisory Board span Europe, the Middle East,
Improve our         Africa, Latin America and the Asia-Pacific regions.
environmental
 impact            BREAST CANCER AWARENESS MONTH
                    To mark Breast Cancer Awareness Month 2018 we
Operate            launched the Pink Light Project, a global breast
responsibly        cancer education campaign in partnership with
                    Cancer Research UK, to provide expertise to
                    support the development of global breast health
About this report
                    educational messaging and tools. Through this, we
                    mobilised millions of Representatives around the
                    world, to create a unique and powerful woman-
                    to-woman communication network sharing
                    educational information about breast cancer.
                    The Campaign achieved 337 million media
                    impressions worldwide.
CONTENTS            RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                                                                                                  Be the company for women | 18

Introduction

                    GLOBAL BREAST CANCER ACTIVITIES:
Be the company
for women

                    HIGHLIGHTS FROM AVON MARKETS
Championing
women’s economic
participation

Advancing women
in our workforce

Our support for
women’s causes
                    ROMANIA                                                      PHILIPPINES                                                      ECUADOR
Improve our
environmental
 impact

Operate
responsibly

About this report

                    Avon’s Pink Light Project reached Romania with a star-       Avon Philippines supported the Pink Light Project with their     Avon Ecuador led the fight against breast cancer, touring
                    studded concert, raising funds for M.A.M.E. Association,     Pink Minute campaign. During Breast Cancer Awareness             the country with their breast cancer prevention unit during
                    which supports women diagnosed with breast cancer.           Month, iconic landmarks and buildings across metro Manila        October and November. Rural areas of Ecuador, including
                    Avon Romania organised a charity concert for 450 people,     became beacons of pink light, to remind women to take            Pichincha, Tungurahua, Cotopaxi, and Guayas Provinces
                    including Avon associates, Representatives and the public.   just one minute to check their breasts, once a month. The        received a visit from the unit. Avon joined forces with the
                    The crowd enjoyed an evening of entertainment with a pink    final pink beacon was lit at the iconic Quezon Memorial          CEPREME Foundation, which works to lower the death
                    theme, and acts included Antonia, a famous Romanian          Shrine, where over 400 Representatives, breast cancer            rate from cancer among Ecuadorian women, creating
                    singer of the pop rock band VUNK, and who is also Avon       survivor groups and the press gathered for an inspirational      a culture of prevention and education. The CEPREME
                    Romania’s Hair Care Ambassador. The event raised an          event at the Liwasang Aurora Arena. Each audience                Foundation also provides support to patients and their
                    amazing $6,180, which far exceeded expectations, and         member got a pink light, and was encouraged to make a            families, and works to promote public policies on the
                    raised awareness of breast cancer for Breast Cancer          pledge, before “passing the light” on to the people around       issue, with the help of a $100,000 donation from Avon. The
                    Awareness Month too.                                         them: “I promise to know the risks, see the signs, and take      touring preventative unit gave women information on the
                                                                                 a pink minute to fight breast cancer. I will pass on the light   importance of prevention and early detection of the signs
                                                                                 about early detection.” The pink light spread from person        of disease. Prior to this activity of more than a month, the
                                                                                 to person until the whole crowd lit up in pink, to remind        Mobile Unit was launched on October 3, 2018.
                                                                                 everyone to take a Pink Minute.
CONTENTS            RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                                                                 Be the company for women | 19

Introduction

                    AVON PROMISE TO HELP END VIOLENCE
Be the company
for women

                    AGAINST WOMEN AND GIRLS
Championing
women’s economic
participation

Advancing women
in our workforce

Our support for
women’s causes

Improve our
environmental                                                                                                        34.3m
                                                                                             $2m
 impact
                                                                                                                      People reached about violence against
Operate            Gender-based violence has historically been a taboo                                               women and girls through digital channels,
responsibly        subject, but in 2004, Avon set out to change that when the                                        events, grants and donations and cause
                    Avon Foundation for Women launched its Avon Speak Out                    Distributed globally     messaging in printed materials
About this report   Against Domestic Violence programme. Speak Out aimed                     in 2018 to end gender-
                    to raise awareness, educate, and support prevention and                  based violence and
                                                                                             support victims and

                                                                                                                      173,000
                    direct service programmes. Since 2004, Avon and the Avon
                    Foundation for Women have contributed more than $60                      their families through
                    million globally to support these goals and have educated                grants and donations,
                    over 60 million people about healthy relationships and                   education campaigns
                    where to seek help if they experience gender-based                       and other awareness      People attended violence against women
                    violence.                                                                events                   and girls’ events or activities in 2018, at
                                                                                                                      over 200 events held by the markets
                    In 2018, Avon reaffirmed its commitment to the cause

                                                                                 123m                                 15
                    with its launch of the Avon Promise to Help End Violence
                    Against Women and Girls. Through the Promise, Avon
                    commits to encourage conversations about gender-based
                    violence, provide information to help people recognise and
                    respond to violence safely and improve support by working    Media impressions through the        Helplines funded
                    with local and global organisations.                         #EmbraceTheChange campaign           and 33 refuges/
                                                                                 and 16 Days of Activism              shelters in 2018
CONTENTS            RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                                     Be the company for women | 20

Introduction

Be the company      VIOLENCE AGAINST WOMEN AND GIRLS RESEARCH                        JUSTICE INSTITUTES ON GENDER-BASED VIOLENCE
for women           As we developed the Avon Promise to Help End Violence            The Justice Institute on Gender-Based Violence, funded
                    Against Women and Girls, we realised there was a need for        by the Avon Foundation and led by NGO partner Vital
Championing         better global data on the issue, particularly insight into the   Voices, is an innovative training programme to coordinate
women’s economic
participation       perspectives, value and attitudes of women. We wanted to         criminal justice responses to violence against women.
                    speak to women around the world, and ask what they knew,         The goal of each Institute is to improve victim protection
Advancing women     thought and felt about this issue, and so we commissioned        efforts and the criminal justice response to gender-based
in our workforce    a survey of nearly 15,000 women in fifteen countries. This       violence by ensuring existing laws better protect victims of
                    survey presented a rare insight into women’s attitudes           domestic and gender violence. In 2018, Avon and the Avon
Our support for
women’s causes      to gender relations, their perceptions of violence and its       Foundation convened five Institutes, returning to Argentina
                    different forms, and of their attitudes towards various          and Brazil, and launching new Institutes in Ecuador, Poland
Improve our         forms of violence. This research provided much-needed            and Northern Ireland.
environmental      data to inform the conversation, but also insights to inspire
 impact            action as we work to help end violence against women and         Since 2014 Avon has funded 22 Justice Institutes in 13
                    girls around the world.                                          countries: Argentina, Brazil, Chile, Colombia, Ecuador, India,
Operate                                                                             Mexico, Nepal, Philippines, Poland, Romania, South Africa
responsibly        VIOLENCE AGAINST WOMEN AND GIRLS                                 and the United Kingdom.
                    ADVISORY NETWORK
                    In 2018, we established the Avon Foundation Violence             OUR GLOBAL VIOLENCE AGAINST WOMEN AND GIRLS
About this report
                    Against Women and Girls Global Advisory Network, to build        CAMPAIGN: #EMBRACETHECHANGE
                    on the work Avon already does to transform the lives of          Ahead of the UN’s 16 Days of Activism against gender-
                    women and girls around the world. The first meeting had          based violence in November 2018, Avon launched
                    clear objectives, including defining the joint aspirations to    #EmbraceTheChange, a social media campaign to draw
                    end violence against women and girls, gathering expert           attention to the unspoken violence that devastates
                    guidance, and developing opportunities to drive the              women’s lives around the world. The campaign was
                    programmes. The Advisory Network is led by Vital Voices          a global awareness movement that shone a light
                    and the World Association of Girl Guides and Girl Scouts         on the different forms of non-physical abuse that
                    (WAGGGS). It also includes representatives from NGOs in          women experience around the world, including cyber-
                    Argentina, Brazil, Philippines, Romania, Russia, South Africa    bullying, coercive control, emotional abuse and street
                    and the United Kingdom.                                          harassment. Working with Avon’s network of over five
                                                                                     million Representatives, local charity partnerships and
                                                                                     events, #EmbraceTheChange reached more than 100
                                                                                     million women and men to raise awareness of the ways in
                                                                                     which abuse takes place, and where victims can get the
                                                                                     support they need. The social media films were played
                                                                                     across Avon’s channels over the months of November and
                                                                                     December, and supported by NGO partner organisations,
                                                                                     including Women’s Aid, Vital Voices and La Casa del
                                                                                     Encuentro.
CONTENTS            RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                                                                                                    Be the company for women | 21

Introduction

                    GLOBAL VIOLENCE AGAINST WOMEN & GIRLS
Be the company
for women

                    ACTIVITIES: HIGHLIGHTS FROM AVON MARKETS
Championing
women’s economic
participation

Advancing women
in our workforce

Our support for
women’s causes
                                                    ARGENTINA                                                      BRAZIL                                                           ROMANIA
Improve our
environmental                                       Avon and the Avon                                              On International Women’s                                        Avon Romania raised
 impact                                             Foundation in Argentina                                        Day 2018, Instituto Avon                                        awareness about healthy
                                                     launched a pioneering                                          Brazil hosted its annual                                        and unhealthy relationships,
Operate                                             policy offering paid leave                                     ‘Speak Out Without Fear’                                        by educating teens about
responsibly                                         for associates who are                                         forum, supported by UN                                          potential abuse and
                                                     victims of gender-based                                        Women. The event, held in                                       violence disguised as young
                                                     violence. The policy,                                          São Paulo, attracted more                                       love. Their campaign, ‘In a
About this report
                                                     Argentina’s first gender-                                      than 600 guests and the                                         Relationship’, spans online
                                                     based violence leave policy                                    agenda focused on the                                           education, workshops and
                                                     offered by a company,                                          issues and challenges facing                                    a relationship ‘test’, gaining
                    provides a legal framework for affected Avon associates to      women in today’s society. Instituto Avon unveiled its new      positive feedback from Romanian teenagers. So far there
                    receive paid days off to address their situation. Avon also     research, “Voices of the Internet: What can they do to end     have been over 39,000 visits to the relationship test
                    provides confidential support for the affected associates       violence against women”, to provide an overview of the         page. 80% of the visits were from girls, and over 17% from
                    in exiting the abusive situation, with the involvement of       debate around gender violence online. The research, which      boys. The workshops, which so far have run at festivals,
                    external experts. In 2018, the legislature of Buenos Aires      was conducted over three years, offered insights into what     explore the reasons why people may become violent, and
                    formally recognised Avon’s policy and was honoured by           can be done to prevent and intervene on cases of violence      highlight more subtle forms of emotional abuse. The result
                    Parliament; Avon Argentina was invited to Parliament to         against women reported online.                                 is empowered teenagers, who know more about healthy
                    share its experience in developing the initiative. As part of                                                                  relationships, the risks they face, and how to get help if
                    this commitment, Avon Argentina has trained associates                                                                         they need it.
                    to identify violent situations and have the tools to help
                    them or others safely exit a violent situation, and training
                    of Representatives to do the same began this year. As part
                    of #EmbraceTheChange, Avon Argentina launched a series
                    of short stories showing situations where women were
                    abused, specifically domestic violence, street harassment
                    and digital violence. The videos became viral on social
                    media and WhatsApp groups, as they highlighted a very
                    real problem that is often hidden behind closed doors.
CONTENTS                 RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                                                Improving our e nvironmental impact | 22

Introduction

Be the company
for women

Improve our
environmental
 impact

Carbon emissions

Water stewardship

Waste and recovery

Sustainable packaging

Tackling deforestation
                                                                   Climate change is one of the most significant threats facing the planet
 perate 
O                                                                  today. It is essential to act, and Avon recognises we must do our best to
responsibly                                                        address this issue. We know that for Avon to operate sustainably, we must
                                                                   be mindful about how we use our planet’s resources.
About this report
                                                                   We work to continually reduce our environmental footprint and
                                                                   responsibly manage our global operations. Our worldwide environmental
                                                                   management team is committed to implementing our policies, processes
                                                                   and goals.

                                                                   24     Carbon emissions               27     Sustainable packaging

                                                                   25     Water stewardship              28     Tackling deforestation

                                                                   26     Waste and recovery
CONTENTS                 RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                                                                     GOAL       Improving our e nvironmental impact | 23
                                                                                                                                                     100% of paper purchased from certified
                                                                                                                                                     or post-consumer recycled content
Introduction                                                                                                                                         sources with a certification preference
                                                                                                                                                     of the FSC

                         PROGRESS TOWARDS
Be the company                                                                                                                                       BASELINE YEAR: 2011 / ON TRACK

for women

                         OUR GOALS
                                                                                                                                                         PROGRESS IN 2018             PROGRESS SINCE BASELINE
Improve our
environmental
 impact
                                                                                                                                                     GOAL
Carbon emissions                                                                                                                                     20% reduction of total GHG emissions
                                                                                                                                                     from Avon operations on an absolute basis
Water stewardship
                                                                                                                                                     BASELINE YEAR 2005 / BEHIND TARGET BUT STRIVING TO REACH
                         Working towards our 2020 environmental        Overall, we made good progress in 2018
Waste and recovery
                         goals, we made substantial reductions in      to reach our long-term, 2020 goals set in
Sustainable packaging    greenhouse gas (GHG) emissions, and water     our 2005 Global Strategic Environmental
                         and waste intensity since 2005. In 2018,      Improvement Plan (“the Plan”), designed                                       GOAL
Tackling deforestation   we reduced GHG emissions by 2.8% on an        to reduce Avon’s environmental footprint,                                     40% reduction in water intensity
                         absolute basis from 2017 and exceeded         reduce costs and overheads, and have all                                      BASELINE YEAR: 2005 / ON TRACK – ALMOST ACHIEVED
 perate 
O                        our 2020 recycling target by achieving an     Avon sites and our global environmental
responsibly              overall company-wide recycling rate of        network contributing to the plan’s success.
                         92.9%. However, water consumption per         Beyond 2020, we will continue to look to
About this report        unit produced increased slightly, by 1.1%     new technologies and innovative solutions
                         from 2017 levels, primarily due to changing   to help us further reduce the environmental                                   GOAL
                         product mix and batch size.                   impacts of our operations and we will be                                      30% reduction of waste on a per unit basis
                                                                       setting new updated targets for greenhouse                                    BASELINE YEAR: 2005 / ON TRACK
                         As a significant user of paper in our         gas emissions, water and waste reduction.
                         brochures and printed materials, Avon is      As part of our ongoing focus to reduce
                         committed to helping end deforestation        greenhouse gas emissions through energy
                         through our Paper Promise and our             efficiency and renewables, we will continue
                                                                                                                                                     GOAL
                         brochure paper is now 91% certified or        to look at the feasibility of setting a science-
                                                                                                                                                     Increase total recycling rate to 90%
                         postconsumer recycled. We are also            based carbon reduction target.
                                                                                                                                                     BASELINE YEAR: N/A / ACHIEVED
                         committed to the responsible sourcing and
                         to supporting the sustainable production
                         of palm oil through our membership of the
                         RSPO (Roundtable on Sustainable Palm                                                                                        GOAL
                         Oil) and intensive engagement with our                                                                                      100% of paper purchased from certified
                         suppliers.                                                                                                                  or post-consumer recycled content
                                                                                                                                                     sources with a certification preference
                                                                                                                                                     of the FSC
                                                                                                                                                     BASELINE YEAR: 2011 / ON TRACK

                                                                                                                          *2005 baseline figures have been  revisedINto
                                                                                                                                                          PROGRESS       reflect minorPROGRESS
                                                                                                                                                                       2018            errors in SINCE
                                                                                                                                                                                                 previous reporting
                                                                                                                                                                                                       BASELINE
                                                                                                                            periods. All restatements do not materially affect our reported progress against goals.
CONTENTS                 RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                                              Improving our e nvironmental impact | 24

Introduction

                         CARBON EMISSIONS
Be the company
for women

Improve our
environmental           GOAL: 20% REDUCTION OF TOTAL GHG EMISSIONS FROM AVON OPERATIONS
 impact                 PROGRESS TOWARDS GOAL: 15.4%

Carbon emissions

Water stewardship

                         We continued to make progress towards                                           GHG EMISSIONS (METRIC TONS) - GLOBAL OPERATIONS
Waste and recovery
                         our 2020 carbon reduction goal in 2018,
Sustainable packaging    reducing greenhouse gas emissions by
                         15.4% on an absolute basis from our 2005
Tackling deforestation   baseline. However, despite this reduction,

                                                                             75,895
                         we remain behind on our target of a 20%
 perate 
O                        emissions reduction by 2020. This was
responsibly              in part due to our separation from the
                         North American business in 2016, which
About this report        meant that across our new footprint there
                         were fewer locations where we had zero
                         emissions contracts in place that were
                         helping us meet our emissions goal.
                                                                                                68,769
                         We continue to strive towards our 2020
                         goal by evaluating possible on-site
                         renewable energygenerating projects
                                                                                                                   66,096
                         such as solar power, and by purchasing
                         renewable energy certificates, such as
                         GOs (Guarantee of Origin certificates
                         that certifies that energy generated is
                                                                                                                                                64,195
                         from a renewable source) and I-RECs
                         (another certification that energy is
                         from a renewable source, recognised
                         internationally). We also continue to focus
                         on energy efficiency projects, for example,
                         upgrading to newer energy efficiency LED
                         lighting to reduce energy consumption and
                         to reduce carbon emissions.                            2005 BASELINE     2016                     2017                         2018
CONTENTS                 RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                                                     Improving our e nvironmental impact | 25

Introduction

                         WATER STEWARDSHIP
Be the company
for women

Improve our
environmental           GOAL: 40% REDUCTION IN WATER INTENSITY
 impact                 PROGRESS TOWARDS GOAL: 38.5%

Carbon emissions

Water stewardship

                         We have almost met our 2020 water
Waste and recovery
                         consumption target, achieving a 38.5% per
Sustainable packaging    unit reduction since 2005, mainly from the
                         ongoing optimisation of equipment cleaning
Tackling deforestation   practices. However, in 2018, our water
                         consumption per unit increased slightly
 perate 
O                        by 1.1% from 2017 levels, primarily due to
responsibly              changing product mix and batch size.
                                                                        223.2                     147.9                     135.7                     137.2
About this report        WATER STEWARDSHIP INITIATIVES
                         IN INDIA AND BRAZIL
                                                                         2005                       2016                      2017                     2018
                         Our location in India has achieved and         BASELINE
                         maintained zero wastewater discharge,
                         resulting in significant water savings in
                         regions where water scarcity is highest.
                         Additionally, our large manufacturing site                             TOTAL WATER CONSUMPTION PER UNIT
                         in Brazil had implemented a large-scale                                    (THOUSANDS OF GALLONS)
                         tertiary wastewater treatment project so
                         that treated water can be used for non-
                         contact purposes in our on-site mechanical
                         equipment. This project saved large
                         amounts of water during the water crisis
                         and beyond.
                                                                      LOOKING FORWARD
                                                                      To obtain large-scale water reductions in the future, we are
                                                                      exploring additional opportunities for tertiary treatment of our
                                                                      wastewater effluent for reuse as non-contact water in facilities
                                                                      where this is technically and economically feasible.
CONTENTS                 RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                                                               Improving our e nvironmental impact | 26

Introduction

                         WASTE AND RECOVERY
Be the company
for women

Improve our
environmental           GOAL: 30% REDUCTION OF WASTE ON A PER UNIT BASIS
 impact                 PROGRESS TOWARDS GOAL: 29%

Carbon emissions

Water stewardship

                         Avon has reduced solid waste and
Waste and recovery
                         increased recycling rates at manufacturing
Sustainable packaging    facilities through programmes that
                                                                            WASTE GENERATED PER UNIT
                         convert waste to energy, reuse wastewater           (POUND/THOUSAND UNITS)
                                                                                                                                 RECYCLING %
Tackling deforestation   sludge and educate global manufacturing
                         associates on ways to reduce waste. In
 perate 
O                        addition, our Brazil locations formed a                                       35.9    2005      68%
                                                                                                              BASELINE
responsibly              partnership with TerraCycle® to return and
                         reuse packaging waste.
                                                                                                       25.8    2016      90.1%
About this report
                         In 2018, we increased our recycling rate to
                         92.9%, and although we have surpassed
                                                                                                       26.1    2017      92.3%
                         our 2020 target of 90%, we want to go
                         further and will set fresh goals to take us
                         beyond 2020. Our UK distribution centre in                                    25.5    2018      92.9 %
                         Corby has achieved this, and our facilities
                         worldwide continue to improve their
                         material recycling.
CONTENTS                 RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                                                                                        Improving our e nvironmental impact | 27

Introduction

                         SUSTAINABLE PACKAGING
Be the company
for women

Improve our
environmental
 impact

Carbon emissions

Water stewardship

                         We aim to continually reduce the                We have a dedicated in-house team              MARKET PARTNERSHIPS
Waste and recovery
                         environmental impact of packaging during        supported by external expertise to drive our   Since 2013, Avon Brazil has funded a TerraCycle® packaging recycling programme for
Sustainable packaging    the product development process and             sustainable packaging agenda at Avon. The      makeup, nail polishes, creams, lotions, perfumes and fragrances. Consumers send their
                         in ongoing operations. All sustainability       team evaluates our full product portfolio      empty packaging to TerraCycle, which then segregates the waste by type of material:
Tackling deforestation   initiatives are designed to ensure a high-      to establish baseline recyclability and        plastic, metal and glass. Each material then follows a recycling flow relevant to the
                         quality product, where the packaging is         looks to industry guidelines, such as those    material. For example, plastic packaging is separated by polymer type, cleaned, and
 perate 
O                        safe, suitable for consumer use and meets       from Plastics Recyclers Europe and The         extruded into plastic pellets to make new recycled products. For each item of packaging
responsibly              all regulatory requirements.                    Association of Plastic Recyclers, to develop   sent in by consumers, the Avon programme donates a portion to a public school or a
                                                                         measurable sustainable packaging goals.        charity chosen by the consumer. As at the end of 2018, the programme has donated a
About this report        We continue to evaluate opportunities           In 2018, we trained 138 package developers     total nearly US$20,000 to these institutions and collected and recycled 4.45 million units
                         to reduce our impact through packaging          on packaging sustainability principles and     totalling 31.5 tonnes of waste.
                         by reducing or eliminating unnecessary          started to incorporate industry recycling
                         packaging, using post-consumer recycled         tests to help with developing even more        Avon Brazil also has a programme, Dê a Mão Para o Futuro, that enables consumers
                         materials in primary and secondary              sustainable innovation.                        to recycle their product packaging. Avon Brazil has funded the programme to include
                         packaging and using refills and bio-based                                                      training for cooperatives of recyclable material pickers and for equipment. Avon Brazil
                         packaging resins. Additional initiatives to                       In 2018, Avon also           joined Rede De Cooperacao Para o Plastico (REDE) as a member in 2018, which aims to
                         reduce the impact of packaging include                            joined the newly             develop the circular economy in various sectors and discussing closing the loop in regard
                         removing leaflets from inside packages, label                     formed Sustainable           to plastic packaging.
                         size reduction, switching to more sustainable                     Packaging Initiative for
                         materials, lightweighting and scalability.                        Cosmetics (SPICE). As        In 2018, Avon Colombia joined the Asociación Nacional de Industriales (ANDI) pilot
                                                                                           a SPICE member, Avon         programme, which aims to develop the best logistic and corporate models for a closed-
                                                                         will collaborate with other cosmetics          cycle programme to collect packaging waste in the national market. Avon Colombia has
                                                                         companies to increase sustainable              been a member of ANDI since 2016.
                                                                         packaging options for cosmetic products.
                                                                         SPICE will focus on innovation and design
                           LOOKING FORWARD                               to decrease the environmental impact of
                           In 2018, we met our commitment to             cosmetics packaging, as well as develop
                           eliminate PVC (polyvinyl chloride)            methodologies such as lifecycle analyses,
                           packaging in all finished beauty              to help companies make informed
                           products produced for our brands.             decisions on sustainable improvements
                                                                         to packaging.
CONTENTS                 RESPONSIBLE BUSINESS REPORT 2018 UPDATE                                                                                                     Improving our e nvironmental impact | 28

Introduction

                         TACKLING DEFORESTATION
Be the company
for women

Improve our
environmental
 impact                 Avon is committed to helping end                 AVON PAPER PROMISE                              To track progress and achieve our goals,
                         deforestation and promoting reforestation        Avon’s traditional business model is centred    Avon voluntarily reports the amount of
Carbon emissions         initiatives through our Avon Paper Promise       on Representatives selling products via         wood fibre we purchase from suppliers
                         and our commitment to support sustainable        a paper brochure. As we digitise and            under each of the forest certifications
Water stewardship        palm oil production.                             modernise our business, we’re moving to a       systems through World Wildlife Fund
                                                                          multi-channel model where Representatives       for Nature (WWF)’s Global Forest and
Waste and recovery
                         COMMITMENT TO SUSTAINABLE PALM OIL               have an online store and can connect with       Trade Network. In 2018, Avon purchased
Sustainable packaging    Palm oil is one of many natural oils used in     customers through digital networks. As we       approximately 120,000 metric tons of
                         personal care products and its production        transition, Avon is committed to optimising     paper for use in brochures.
Tackling deforestation   is associated with tropical deforestation        our overall use of paper in every area of our
                         and peatland depletion, which can result in      business, including basis weight reductions,
                                                                                                                    In 2018 we launched a mobile and
 perate 
O                        the loss of natural habitats for endangered      reductions in brochure size, and increasing
                                                                                                                    e-interactive shoppable brochure which has
responsibly              species and human rights issues.                 the use of digital media as a replacement been rolled out in 55 markets. Hundreds
                                                                          for paper-based products.                 of thousands of Representatives have set
About this report        Avon is a relatively small user of palm oil or                                             up their own online stores which can be
                         palm kernel oil (PKO) and predominantly          Our Avon Paper Promise is a comprehensive accessed on desktop and mobile phones.
                         uses ingredients that are derivatives. Still,    policy for promoting responsible forest   As well as enhancing the digital capabilities
                         in our efforts to minimise our impact on         use and protecting forests. We are making of our Representatives, this has helped us
                         the environment, we are committed to             significant progress towards our Paper    significantly reduce our paper use.
                         supporting the sustainable and responsible       Promise goal of purchasing 100% of our
                         production of palm oil. We do this through       paper from certified and/or post-consumer
                         our membership of the RSPO and through           recycled content sources by 2020. Through
                         holding our suppliers accountable to our         the end of 2018, 91% of Avon’s brochure
                         responsible sourcing principles.                 paper met our Paper Promise goal, with
                                                                          30% of brochure paper being FSC certified
                         In 2018, 51% of our palm oil derivatives,        and 61% PEFC certified.
                         sourced from our 14 largest suppliers,
                         was sourced from companies committed
                         publicly to NDPE (no deforestation, peat or
                         exploitation) principles and we are working
                         hard to increase this and source from
                         suppliers committed to these principles.
You can also read