Signatory Name: Estee Lauder Companies Pty Ltd

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Signatory Name: Estee Lauder Companies Pty Ltd
   The question numbers in this report refer to the numbers in the report template. Not all questions are displayed in
   this report.

   Status: Completed

   The content in this APC Annual Report is hereby endorsed by the Chief Executive Officer, or equivalent officer of the
   organisation.
          Yes

5. Industry sector (please select 1 only):
          Brand Owner / Wholesaler / Retailer
          Packaging Manufacturer
          Waste Management
          Other - Commercial Organisation
          Community Group
          Industry Association
          Government
          Raw Material Supplier
          Other:

6. Industry type (please select 1 only):

          Food & Beverage
          Pharmaceutical / Personal Care / Medical
          Hardware
          Homewares
          Communications / Electronics
          Clothing / Footwear / Fashion
          Chemicals / Agriculture
          Fuel
          Large Retailer
          Tobacco
          Shipping Company
          Airline
          Other:

7. Please indicate your organisation's reporting period:
          Financial Year: 1 July 2012 – 30 June 2013
          Calendar Year: 1 January 2013 – 31 December 2013
Goal 1: Design

KPI 1: % of signatories with documented policies and procedures for evaluating and procuring packaging using the
SPGs or equivalent.

8. Does your company have documented policies and procedures for evaluating and procuring packaging using the
   SPGs or equivalent?

                      Yes                                           No

     Provide details of policies and procedures
     When designing a package the developer has to consider the "Sustainable Packaging Guidelines" .
     This includes optimizing the packaging materials and designing for recovery. Every package is currently specified to
     be recovered through recycling, composting or energy recovery as required by EU recovery standards.

     The Estée Lauder Vision for Sustainable Packaging
     The Estée Lauder Companies Inc. believes that our packaging must be beneficial, safe and healthy for individuals and
     communities throughout its life. Our environmental goal is to design our packaging so that it:
     - Meets marketing criteria for performance and cost
     - Is sourced, manufactured, transported and recycled using renewable energy
     - Maximizes the use of renewable and recycled source materials
     - Is manufactured using clean production technologies and best practices
     - Is made from materials healthy in all probable life cycle scenarios
     - Is physically designed to optimize materials and energy
     - Can be effectively recovered for re-use as a resource after our product has been consumed

9. Of the types of packaging existing at the beginning of the reporting period, what percentage had been reviewed
   using the Sustainable Packaging Guidelines (SPG) by the end of the reporting period?

                                   10    %

10. Have any new types of packaging been introduced during the reporting period?
                      Yes                                           No

11. If yes, of the new types of packaging introduced during the reporting period, what percentage have been
    reviewed using the Sustainable Packaging Guidelines (SPG) by the end of the reporting

                                  100    %

12. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 1

        Target: According to your Action Plan, what did you set     Actual: What did you achieve?
        out to do?

1.      Testing new substrate from rapid renewable resources on     Completed pilot tests in manufacturing environment.
        targeted componentry                                        Package testing at 75% completion

2.      Working with our packaging manufacturers and resin          Mold pilot run completed. Package testing 80% completed
        suppliers to develop packaging made from HDPE plastics
        that come from sugar cane ethanol renewable feed stock.

3.      Introduce new rapid renewable bio resin alternative for     Aquired brand(s) approval for pilot test.
        polypropylene                                               Testing schduled scond quarter 2014

4.      Finalized our Back to MAC as first closed loop Take Back    New compact production contain 10% PCR ABS resin
        program in health and beauty industry                       from the Back to MAC program

13. Describe any constraints or opportunities that affected performance under this KPI

     When working with new sustainable materials much extended testing is necessary to better understand a materials
     strengths and limitations. We have learned a great deal and have identified a number possible opportunities for future
     projects
Goal 2: Recycling

KPI 3: % signatories applying on-site recovery systems for used packaging.

14. Do you have on-site recovery systems for recycling used packaging?
           Yes at all facilities/ sites
           Yes at some, but not all facilities/ sites
           No

15. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 3

        Target: According to your Action Plan, what did you set        Actual: What did you achieve?
        out to do?

1.      Programs / processes are in place for most materials to        Cardboard and paper packaging, cardboard and paper
        be collected / recycled where and when it is appropriate /     display / collateral / in store materials, above 80% (target).
        available.
        It is expected In some cases it is not possible to recycle     Retail stores, distribution centres, offices and training
        everything especially post consumer waste.                     centres 100% have recycle programs in place.
        Post industrial waste is targetted to re-cycled at greater
        than 80% levels.                                               Post-consumer packaging materials [cans, glass, plastic
                                                                       paper etc.] are collected and re-cycled when it is practical
                                                                       to do so / recycling is available, estimated that 70% only
                                                                       of sites have "effective" post consumer re-cycling process
                                                                       available; however this is very small portion / percentage
                                                                       of waste in our system.

16. Describe any constraints or opportunities that affected performance under this KPI

     Availability of recycling facilities / services at various store locations – shopping centres etc. is normally very good, as
     well as the physical ability to recycle is quite simple.
     However to separate post consumer waste from normal waste is sometimes quite limited.

KPI 4: Signatories implement formal policy of buying packaging made from recycled products.

17. Does your company have a formal policy of buying packaging made from recycled packaging?
                       Yes                                              No

     Provide details of policies and procedures (including names of policies/ procedures)
     Estée Lauder Corporate issues Sustainable Package Development Guidelines with a goal for maximizing the use of
     renewable and recycled source materials. These guidelines define each objective as a goal or standard. A goal is an
     objective to be realized and a standard is a goal that has been reached and is now part of every new package being
     developed.

18. Is this policy actively used?
                       Yes                                              No

19. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 4

        Target: According to your Action Plan, what did you set        Actual: What did you achieve?
        out to do?

1.      Maximize PCR % of tertiary packaging                           Shippers are currently all at 70% recycled content.

2.      Recycled content and Renewable resource                        Aveda launched its Pure Abundance shampoo and
                                                                       conditioner lines of which the bottle are made of 49%
                                                                       PCR HDPE and 51% renewable resource (sugar cane)
                                                                       HDPE
20. Describe any constraints or opportunities that affected performance under this KPI

     Quality of recycled product is important for product integrity, extensive product compatability testing is undertaken to
     guarantee integrity of products when PC content is included.

Goal 3: Product Stewardship

KPI 6: % signatories with formal processes to work collaboratively on packaging design and / or recycling.

21. Does your company have formal processes in place for collaborating with other companies or organisations on
    improved packaging designs and/or recycling which aims to reduce or eliminate waste?

                      Yes                                             No

     Provide details of policies and procedures (including names of policies/ procedures)
     *Estée Lauder has been instrumental in forming the Sustainable Packaging Cosmetic Roundtable, an organization of
     brand owners in the Cosmetic Industry who are working together to share best practices in order to make more
     responsible choices on materials, manufacturing practices, and packaging stewardship.
     *We were a founding member of the Sustainable Packaging Coalition (SPC), an organization founded to work with
     stakeholders in the packaging industry (brand owners, suppliers, retailers, recyclers, material manufacturers, etc)
     whose mission is to "Applying Life Cycle Thinking to Make Packaging More Sustainable" The SPC promotes economic
     and environmental health through supply chain collaboration.
     Estée Lauder also works with our suppliers to design and develop packaging to our sustainability vision.

22. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 6

        Target: According to your Action Plan, what did you set       Actual: What did you achieve?
        out to do?

1.      Work with suppliers to develop alternatives to Mylar          Currently working on alternatives such as Green coatings
        laminates                                                     metallic inks, transfer foil and compostable metallic films.

2.      Working with bag suppliers to eliminate PVC bags              Clinique brand has eliminated PVC in all bags
        (currently using Phthalate Free PVC)

3.      Working with our packaging manufacturers and resin            Currently testing bottles and tubes made from Sugar
        suppliers to develop packaging made from plastics that        Cane
        come from renewable feed stock.                               based HDPE.

23. Describe any constraints or opportunities that affected performance under this KPI

     Still in testing process, extensive testing is required for packaging that comes in direct contact with products such as
     HDPE tubes - due to product integrity requirements.

KPI 7: % signatories showing other Product Stewardship outcomes.

24. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 7

        Target: According to your Action Plan, what did you set       Actual: What did you achieve?
        out to do?

1.      Back to MAC: This very successful program has been            In the USA in October 2013 the program became the first
        running for years and now takes back all MAC packaging        closed loop Take Back program in the Health and Beauty
        at their stores and counters. A new goal is to develop the    Industry. All new compacts production are made with 10%
        capability to reuse the recycled materials in their           PCR ABS from the Back to MAC program.
        packaging.
2.      Aveda Take Back program: designed to take back any              The US program has expanded by 125 stores with plans
        packaging not recycled locally. Target was evaluation of        of further expansion during the next few years
        program.

3.      La Mer - Oceans conservatory work with Oceana                   La Mer has contributed more than $1.4 million to Oceana,
                                                                        which is helping to protect more than a million square
                                                                        miles of ocean habitats in places such as Alaska, Belize
                                                                        and Chile.

25. Since the beginning of the reporting period, has your company had any other outcomes related to product
    stewardship?

                       Yes                                              No

     If yes, please give examples of other product stewardship outcomes
     October 2013 (North America specific) the program became the first closed loop Take Back program in the Health and
     Beauty Industry. All new compacts production are made with 10% PCR ABS from the Back to MAC program.

26. Describe any constraints or opportunities that affected performance under this KPI

     Reverse logistics can present cost and carbon footprint challanges. Program must be attended as one of continous
     improvement to meet with success

KPI 8: Reductions in packaging items in the litter stream.

27. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 8

        Target: According to your Action Plan, what did you set         Actual: What did you achieve?
        out to do?

1.      The target for litter reduction is to take responsibility for   We are working on four programs as models (Back to
        our packaging that would otherwise not be collected in          Mac, Aveda caps, Aveda Full Circle and Origins Return to
        any municipal or curbside program. We plan to do this           Nature) for a take back programs with the goal to
        through packaging take back programs as described               eventually cover all Estée Lauder brands and the
        above.                                                          Cosmetic Industry in the USA.
                                                                        Then roll that out where appropriate to other countries
                                                                        including Australia if possible / practical.

28. Describe any constraints or opportunities that affected performance under this KPI

     Reverse logistics can present cost and carbon footprint challenges. Program must be attended as one of continuous
     improvement to meet with success, and have enough volume to sustain the process, in lower volume / smaller markets -
     domestic recycling programs may be more sustainable.
Your Experiences

This section lets you share with us any achievements, good news stories and areas of difficulties in making progress against
your plan and the Covenant goals and KPIs.

29. Key achievements or good news stories
    Initiate the ability to recycle old MAC compacts and use the material to make new compacts for industries - first closed
    loop voluntary producer responsibility program.

    Initiation of polypropylene resin bank program that gathers company excess and obsolete PP components, certain PP
    components from "Take Back" programs and processes the materials into PCR pellet for manufacture of new cosmetic
    components.

    These are both major initiatives in the USA as products are manufactured in the USA where the recycled materials can
    be efficiently gathered and used. Hard to apply this process in Australia as volume is too small for economic Take Back
    programs to end up back in product stream - however normal recycling process is effective in Australia market if
    consumers use the recycling programs available.

30. Areas of difficulties in making progress against your plan, Covenant goals or KPIs
    - The quality of recycled materials is always a challenge, as is using them for the Cosmetic Industry where the
    consumer expects top of the line packaging for their prestige cosmetic product.
    - Incentivising consumers to bring packaging back to the store is also a challenge. The Back to MAC program
    illustrates how much of an incentive is required to make this happen.

    These initiatives are in the USA and we have the same problems getting consumers to return products - all packaging
    does have recycle symbols so we are reliant on packaging being recycled through the council based schemes to get the
    material back into the re-use stream.
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