Aveda Corp.
Climate Impact & Sustainability Data (2013-2014)
Reporting Period: 2013-2014
Environmental Metrics
Total Carbon Emissions:13.2 million kg CO2e
Renewable Energy Share:1%
Total Energy Consumption:49 million MJ
Water Consumption:75,034 m3
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Water use and industrial wastewater down from FY2012 by 6% (absolute)
- All types of waste generation down from FY2012 by 11–18% (absolute); recycling up from FY2012 by 4% (absolute)
- C2C certifications or recertifications for 11 products
- Introduction of more 100% PCR HDPE bottle components and introduction of PCR in non-dispensing polypropylene caps
- Introduction of product packaging tubes made with a sugar cane-based polyethylene bio-resin that is 96% plant derived blended with PCR polyethylene
- Introduction of 100% PCR coated paper stock for folded cartons and hang tags
Social Achievements
- Joined other businesses in BICEP to advocate for science-based climate change policy
- $6 million raised during Earth Month
- $200,000 given to Hurricane Sandy Relief programs
- 97% of Aveda Lifestyle Salons and Spas participate in Earth Month
- Implementation of Aveda Mission Leader™ platform for employee engagement
- Blaine employee volunteer participation rate of 35%
Governance Achievements
- Establishment by ELC of a dedicated sustainability function with the hiring of ELC’s first Vice President of Global Corporate Responsibility
Climate Goals & Targets
Long-term Goals:
- Company is net zero on carbon and potentially positive
- Company is zero waste to landfills for manufacturing and distribution and for product returns and excess inventory
- Water from robust water supplies; returning to ecosystems in healthy condition, at least 10% total reduction in use
- 100% network salon participation in Earth Month
- 100% active participation of the network in “ecosalon” activities/certification
- Leave No Trace—packaging in closed loop C2C system. Packaging materials are recovered for reuse and/or are compostable.
Medium-term Goals:
- Achieve an average of 97% naturally derived ingredients for new retail product launches
- Implement formalized review of manufacturing energy requirements during new product formulation and production process development
- 14% reduction in GHG emissions per kg production
- 80% recycling rate for manufacturing
- 98% recycling rate for Midwest Distribution Center
Short-term Goals:
- Evaluation ongoing; policy update expected by FY2016
- Aveda funding for 12 additional projects that deliver environmental and/or social benefits to our sourcing communities
- Identification of supply chain water-related risks for at least 6 key ingredients
- Development of a Community Supplier Agreement defining Aveda’s obligations to small community suppliers of botanical ingredients to enhance the level of predictability of purchases and support if Aveda’s needs for the ingredient change over time
- A total incidence rate no greater than 1.45
- At least 50% participation of all North American employees in volunteer activities
- At least $7 million in Earth Month Fundraising
- At least 90% Concept Salon participation
- Over 4,000 Network professionals will engage with Aveda Mission Leader (approximately 10% of all Network professionals)
- Over 1,000 Aveda Mission Leader users will participate in the Green Salon Certification Project
- 100% of Experience Center Advisors and staff will participate in Aveda Mission Leader
- 100% increase in bio-based polymer packaging (by tonnage) from FY2014
Environmental Challenges
- Increase in energy use through process improvements for high-performance formulas that require added energy
- Respond to increase in production levels with actions to reduce environmental impact
- Work with partners to help restore and enhance damaged ecosystems as business grows
- Lowering energy and water consumption for guests and salons using Aveda products
- Maximize Aveda Network participation in Mission-related activities
- Certain ingredients that do not meet Cradle to Cradle biological nutrient status
- Get post-consumer materials into the recycling stream so the technical nutrient status can be fulfilled
- Reduce product returns
- Energy use up from FY2012 by 17% (absolute)
- Greenhouse gas use up from FY2012 by 9% (absolute)
- Safety-related incidents (including near misses and property damage) increased by 65% between FY2012 and FY2014
- Relatively low participation rate (72%) of U.S. Aveda Concept Salons in Earth Month
- Initial Green Salon Project did not meet goals (20–30% participation); relaunch planned for FY2016
- Continue to seek higher recycled content in aluminum tubes while maintaining required performance characteristics
Mitigation Strategies
- Ongoing evaluation of Aveda’s Green Ingredient Policy
- Continued commitment to greater traceability for PKO-derived ingredients and to use RSPO sources, including organic certified palm fruit oil
- Water-related sourcing community benefits projects funded through Global Greengrants Fund in India, Nepal, Brazil, and Madagascar
- Aveda Mission Leader™ platform for employee engagement
- Full Circle packaging takeback program rolled out to Experience Centers
- Purchases of RSPO certified ingredients began after FY2014, however, research on availability began during the reporting period.
- Engagement with Schneider Electric for a thorough energy audit of the facility
- Incorporate accountability for addressing resource use with capital expenditure planning for the facility
- Initiated research on low water use products that deliver professional level performance
- Renewed efforts with Zero Waste teams charged with eliminating waste at the source
- Discussions with the supplier about using an easier-to-recycle packaging material
- Pursuing purchase of a specialized baler that will enable us to easily recycle the packaging
- Relaunch of Green Salon Project planned for FY2016
Supply Chain Management
Supplier Audits: 5 CoC, 4 IMO audits
Responsible Procurement
- ELC Supplier Code of Conduct
- Aveda Green Ingredient Policy
- Mission Aligned Ingredient Review process
- Cradle to Cradle certification
Climate-Related Risks & Opportunities
Physical Risks
- Crop disruptions due to climate change
Transition Risks
- Regulatory changes
Opportunities
- Development of energy-efficient products
- Payment for ecosystem services
Reporting Standards
Frameworks Used: GRI, Ceres Principles
Certifications: Cradle to Cradle
Sustainable Products & Innovation
- Botanical Kinetics™ Hydrating Face Crèmes
- Dry Remedy™ line with sugar cane-based polyethylene resin
Awards & Recognition
- AmeriStar award for 100% PCR packaging
- The Estée Lauder Companies Leonard A. Lauder Team of the Year Award