Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Governance
• Environmental Sustainability
• Economic Sustainability
• Product Sustainability
• Social Sustainability

Environmental Achievements

• Reduced CO2 emissions by 19.5% compared to 2019
• 27% of electrical energy from renewable sources
• Reduced consumption of fossil fuels (heating and company fleet) by 25.3%
• Reduced water consumption by 6% compared to 2019
• Reduced waste production by 22% compared to 2019

Social Achievements

• Launched Beauty in All Its Forms training project for young people with intellectual disabilities
• Supported La Forza e il Sorriso project providing beauty workshops for women undergoing cancer treatments
• Supported Dynamo Camp, a recreational therapy camp for children with serious chronic diseases
• Supported Bergamo Scienza science festival
• Supported Fondazione Accademia Carrara art gallery
• Supported Ambasciatori di Donizetti project for the Teatro Donizetti
• Supported ITS Nuove Tecnologie della Vita technical college
• Supported PMG Guaranteed Mobility project
• Sponsored electric vehicle recharging stations in Osio Sotto
• Donated sanitizing gel, hand cleansers, and sanitizer dispensers during the COVID-19 emergency

Governance Achievements

• Voluntarily adopted an Organization and Management Model to prevent offenses under Legislative Decree 231/2001
• Implemented ISO 9001:2015 Quality Management System, ISO 22716:2007 Cosmetics GMP, and UNI EN ISO 13485:2016 Medical Devices QMS certifications
• Conducted internal audits of principal business processes

Climate Goals & Targets

Environmental Challenges

• Global health emergency caused by the spread of the SARS-CoV-2 virus severely affected operations and sustainability projects
• Supply chain disruptions due to the pandemic
• Difficulties in guaranteeing production activity, coordinating affiliates, maintaining customer contacts, and protecting the supply chain due to travel restrictions

Mitigation Strategies

• Readjusted existing sustainability projects and implemented new initiatives in light of the pandemic
• Accelerated the process of digitalization
• Implemented remote auditing of processes
• Implemented videoconference system for global communication

Supply Chain Management

Supplier Audits: 775 new suppliers screened under ethical-social criteria in 2020

Responsible Procurement

• Supplier Code of Conduct and Code of Ethics
• Pre-qualification questionnaire assessing ethical-social approach
• Qualification file examining financial position, business organization, certifications, and sustainable development policies

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (Core Option)

Certifications: UNI EN ISO 9001:2015, ISO 22716:2007, UNI EN ISO 13485:2016, SMETA, SEDEX, ELEVATE Lmt.

Sustainable Products & Innovation

• OLOS AGE POSITIVE line (up to 99.14% natural ingredients)
• SEMI DI LINO line for curly hair
• COLOR WEAR semi-permanent hair color with natural alkalizer

Awards & Recognition

• 6th place among listable Italian companies in the beauty sector (Pambianco)
• DIBI MILANO #Age Method Crema Impulso di Giovinezza awarded best anti-age cosmetic product in China

Environmental Metrics

ESG Focus Areas

• Sustainable Governance
• Economic Sustainability
• Environmental Sustainability
• Social Sustainability

Environmental Achievements

• 3 out of 5 plants use electricity from renewable sources, 1 plant uses natural gas with compensated CO2 emissions
• 100% of the color tubes of the Alfaparf Milano brand are made of recycled aluminum (Italian plant)
• OLOS skincare line launched with 40% of ingredients from natural origin and minimal environmental impact packaging

Social Achievements

• Launched employee well-being program (Marca Empleadora in Argentina)
• Beauty in all its forms project provides training for young people with disabilities
• Supported various charities including La Forza e il Sorriso, Un Angelo per Capello, and Dynamo Camp

Governance Achievements

• Established Global Sustainability Department and Sustainability Committee in 2021
• Updated Code of Ethics in early 2022 to include UN Sustainable Development Goals
• Published Sustainability Plan for 2022-2024

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to increased energy costs, logistics crisis, and raw material scarcity
• Shortages of recycled packaging materials

Mitigation Strategies

• Implemented long-term contracts with main suppliers to guarantee full coverage of needs
• Utilized Under Consignment Stock for strategic raw materials
• Implemented initiatives to reduce packaging weight and use recycled materials

Supply Chain Management

Supplier Audits: Number not specified, but pre-qualification and qualification questionnaires are used for new suppliers, and site audits are planned for the future.

Responsible Procurement

• Code of Ethics
• Supplier sustainability requirements
• Preference for local suppliers (58% of spending in 2021)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: UNI EN ISO 9001:2015, ISO 22716:2007, UNI EN ISO 13485:2016, AEO, Industria Limpia

UN Sustainable Development Goals

• Goal 3
• Goal 7
• Goal 8
• Goal 9
• Goal 12
• Goal 13

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• OLOS skincare line
• COLOR WEAR hair color (vegan, uses natural amino acid)
• INVISIBLE ROOT RETOUCH (vegan)

Awards & Recognition

• Leader of Sustainability 2021 (Il Sole 24 Ore)
• 1st position in The Procurement Awards 2021 (Ethical and Sustainable Purchases)
• Inclusion in Women’s Wear Daily’s top 100 cosmetics manufacturers

Environmental Metrics

ESG Focus Areas

• Sustainable Governance
• Economic Sustainability
• Environmental Sustainability
• Social Sustainability

Environmental Achievements

• Four of seven sites use 100% renewable energy, two use over 80% renewable energy.
• Reduced CO2e emissions by almost 48% (Scope 1 + Scope 2 Market based) compared to 2021.
• Reduced water consumption by almost 24% in the production of Alfaparf Milano and Private Label products compared to 2021.
• Increased use of recycled plastics (PCR and PIR), recycled aluminum, and FSC-certified paper and cardboard in packaging.

Social Achievements

• Italian headquarters obtained Dyslexia Friendly Company certification.
• Launched "Beauty in All Its Forms" project to train young people with learning disabilities.
• Organized "A Different Christmas" initiative in Argentina to benefit hospitalized children.
• Implemented "Yellow New Star Program" in Panama to train girls detained in a rehabilitation center.

Governance Achievements

• Established Sustainability Committee in 2021.
• Updated Code of Ethics in 2022.
• Italian subsidiary adopted Organisation and Management Model (231 Model).

Climate Goals & Targets

Environmental Challenges

• Raw material shortages.
• Rising energy costs.
• Global supply chain difficulties.
• Structural shortages of certain categories of recycled raw materials.

Mitigation Strategies

• Global Purchasing Department constantly strives to improve costs, recyclability of components, energy consumption, and replicability in different subsidiaries.
• Developed partnerships with manufacturers and/or suppliers to promote the production and use of recycled materials in packaging.
• Implemented a tax risk control system.
• Long-term contracts with suppliers to ensure full coverage of requirements.

Supply Chain Management

Supplier Audits: Periodic meetings with suppliers and on-site visits/audits

Responsible Procurement

• Strict qualification process for suppliers.
• 4R approach (Re-think, Re-use, Re-duce, Re-cycle).
• Preference for suppliers with technological innovation, sustainable materials, and environmental/social certifications.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI 2021 Standards

Certifications: UNI EN ISO 9001:2015, ISO 22716:2007, UNI EN ISO 13485:2016, Authorized Economic Operator (AEO), Industria Limpia, Good Manufacturing Practices (GMP), Buenas Prácticas de Manufactura para la Fabricación de Productos Farmacéuticos (BPM)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 17 (Partnerships for the goals)

The Sustainability Plan is based on 13 priority SDGs, translated into quantitative KPIs and concrete projects and actions.

Sustainable Products & Innovation

• OLOS skincare brand
• BENVOLEO sustainable haircare brand
• Solarium Sea Lover sun protection line

Awards & Recognition

• Sustainability Leader 2022 (Statista for Il Sole 24 Ore)
• Best Managed Company 2022 (Deloitte Private)
• First place in The Procurement Awards 2022 (Procurement Innovation category)

Environmental Metrics

ESG Focus Areas

• Sustainable Governance
• Economic Sustainability
• Environmental Sustainability
• Social Sustainability

Environmental Achievements

• Two production plants use 100% renewable electrical energy
• One production plant uses over 80% renewable electrical energy
• 50% renewable electricity
• 11% recycled packaging
• Semi di Lino's 'Zero Metal' project eliminated metal from plastic bottle caps and jars.
• OLOS compensated 55,586 kg of CO2 emissions from packaging production by funding certified projects.

Social Achievements

• Launched Alfaparf Foundation, a non-profit philanthropic body focusing on social, cultural, artistic, and solidarity initiatives.
• Launched Benvoleo, Alfaparf Milano's first sustainable haircare brand, including CSR activities linked to rainforest protection and biodiversity.
• Bellezza in tutte le sue forme project provided training for young people with learning disabilities.
• Supported La forza e il sorriso, providing beauty workshops for women undergoing cancer treatment.
• Supported Dynamo Camp, offering recreational therapy programs to children with serious illnesses.

Governance Achievements

• Adopted an Organisation and Management Model (231 Model) to prevent offences.
• Updated Code of Ethics in 2022.
• Obtained UNI EN ISO 9001:2015, ISO 22716:2007, UNI EN ISO 13485:2016 certifications.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical instability and Suez Canal attacks.
• Increased energy costs due to market tensions.
• Need to improve data collection on naturalness of ingredients in acquired companies.

Mitigation Strategies

• Considering shortening the production chain by promoting local suppliers.
• Implementing Ivalua e-procurement software for better supply chain management.
• Implementing a database to monitor ingredient naturalness across all Group plants.

Supply Chain Management

Supplier Audits: 96% of new suppliers evaluated according to ethical and social criteria.

Responsible Procurement

• Strict qualification process for suppliers.
• 4R approach (Re-think, Re-use, Re-duce, Re-cycle).
• Preference for local suppliers (63% of spending).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (GRI 2021)

Certifications: UNI EN ISO 9001:2015, ISO 22716:2007, UNI EN ISO 13485:2016, Authorized Economic Operator (AEO) Certification (Italy), Industria Limpia (Mexico), Buenas Prácticas de Manufactura para la Fabricación de Productos Farmacéuticos (BPM) (Venezuela)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Initiatives aligned with these goals through renewable energy use, waste reduction, emissions reduction, and sustainable product development.

Sustainable Products & Innovation

• Benvoleo haircare brand
• OLOS skincare brand
• Solarium SEA LOVER sunscreens

Awards & Recognition

• Best Managed Company Award 2023
• Sustainability Leader 2023
• Women’s Wear Daily Top 100 (87th)