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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