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