Aesop
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:60,301 tCO2e/year
Scope 1 Emissions:227 tCO2e/year
Scope 2 Emissions:2,127 tCO2e/year
Scope 3 Emissions:57,963 tCO2e/year
Renewable Energy Share:7%
Total Energy Consumption:4,919 MWh/year (non-renewable) + 346 MWh/year (renewable)
Water Consumption:Not disclosed
Waste Generated:373 tons/year (estimated)
Carbon Intensity:5% reduction in carbon intensity per product unit sold (for specific categories).
ESG Focus Areas
- Climate Change
- Packaging
- Sustainable Sourcing
- Philanthropy and Social Impact
- Diversity, Equity and Inclusion
- Employee Wellbeing
Environmental Achievements
- Reduced freight emissions by 20% in absolute terms.
- Reduced contract manufacturing emissions by 56%.
- Achieved 56.5% recycled plastic in packaging.
- Transitioned three popular products to 100% post-consumer recycled aluminum tubes.
- 80% reduction in embodied carbon impact with Aesop Gansevoort store design.
- 5% reduction in carbon intensity per product unit sold for raw materials, packaging, upstream transport and distribution, business travel, employee commute and end-of-life of sold products.
Social Achievements
- Launched a new global giving strategy for the Aesop Foundation with a AU$40 million pledge by 2030.
- Donated AUD$2.8 million through the Aesop Foundation.
- 144 Aesop employees volunteered with Refugee Community Kitchen.
- Expanded Queer Library initiative to new locations, distributing tens of thousands of books.
- Continued Women’s Libraries initiative, gifting 19,000 books.
Governance Achievements
- Achieved 50% women representation at Board and Senior Leadership level.
- Maintained 98% living wage across the business.
- Unexplained pay gap of -0.88%.
Climate Goals & Targets
Long-term Goals:
- Net Zero emissions by 2050
Medium-term Goals:
- 100% of packaging to be reusable, recyclable or compostable by 2030.
- 50% plastic packaging material used is recycled by 2030.
- Achieve Net Zero GHG emissions by 2050 (90% reduction, 10% offsetting).
Short-term Goals:
- Lower the embodied carbon footprint of all new signature stores by 50% in intensity by 2027.
Environmental Challenges
- Increased emissions across scopes 1, 2, and 3 due to growth in China and increased business travel.
- Challenges in achieving full traceability and certification for all critical raw materials.
- High rate of 'panelling' in new 50ml bottles.
- Decreased traceability of palm oil compared to 2021 due to increased number of suppliers.
Mitigation Strategies
- Prioritizing carbon insetting and permanent carbon removal.
- Implementing a carbon budget and tracker for air freight.
- Improving supply chain management and governance procedures.
- Working with contract manufacturers to transition to renewable energy.
- Collaborating with suppliers to solve sustainability challenges (e.g., 50ml bottle panelling).
- Engaging suppliers earlier to improve traceability.
Supply Chain Management
Supplier Audits: Increased number of third-party independent audits by 19% in 2023.
Responsible Procurement
- Sustainable procurement policies
- Ethical sourcing training
- Code of conduct
- Alignment with L'Oréal for the Future program
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather
Transition Risks
- Regulatory changes
- Market shifts
Opportunities
- Development of energy-efficient products
Reporting Standards
Frameworks Used: Science Based Targets initiative (SBTi), B Corp
Certifications: RSPO Supply Chain Certified (palm oil)
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 12 (Responsible Consumption and Production)
- Goal 13 (Climate Action)
- Goal 8 (Decent Work and Economic Growth)
- Goal 10 (Reduced Inequalities)
- Goal 17 (Partnerships for the Goals)
Aesop's initiatives contribute to these goals through various environmental, social, and governance programs.
Sustainable Products & Innovation
- Recycled aluminum tubes
- Recycled plastic bottles
Awards & Recognition
- Work180 Endorsed Employer for Women (ANZ)
- HR Asia Awards (Hong Kong)