Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human Capital Management
• Diversity, Inclusion and Belonging
• Philanthropy and Community Impact
• Environmental Sustainability and Responsible Sourcing
• Data Protection and Cybersecurity

Environmental Achievements

• Converted store delivery system to a more efficient pool distribution model, reducing truck miles
• Reduced working hours in home office and stores; installed LED lighting in new, relocated, and remodeled stores, reducing energy usage
• Replaced 800 inefficient HVAC units, reducing energy consumption by 10%
• Implemented a well-defined process for managing hazardous waste
• Used water conservation fixtures in most facilities
• Launched SBH Going Green program, removing plastic bags, Styrofoam cups, and implementing cardboard recycling, eliminating significant waste from landfills
• Launched Inspired by Nature product line with sustainable packaging

Social Achievements

• Hired Director of Diversity, Inclusion, and Belonging and ESG
• Continued multi-phase DIB leadership training
• Continued SBH’s Diversity, Inclusion, and Belonging initiative, “One & All”
• Announced a goal of establishing Employee Resource Groups (ERGs)
• Improved anticipated score to 95 out of 100 on the Human Rights Campaign’s Corporate Equality Index (CEI)
• CEO signed the Pledge for CEO Action on Diversity & Inclusion
• Provided associates time off to vote
• Donated approximately $21 million worth of PPE
• Raised approximately $30,000 for the United Way of Denton County

Governance Achievements

• Board and Nominating, Governance and Corporate Responsibility Committee have oversight of ESG plan
• Quarterly updates on ESG initiatives to the committee
• Annual advice on long-term design of ESG program from the committee
• Compensation and Talent Committee oversees diversity and inclusion programs
• Appointed Erin Nealy Cox, a cybersecurity expert, as an independent director

Climate Goals & Targets

Environmental Challenges

• Reducing environmental impact across global footprint
• Maintaining and improving diversity, inclusion, and belonging initiatives
• Managing evolving risks associated with cybersecurity threats

Mitigation Strategies

• Working with an ESG consultant to understand carbon footprint and refine ESG strategy
• Identifying sustainability opportunities and baseline measurements for carbon neutrality commitments
• Creating a baseline for reducing harmful ingredients and sustainable packaging for Own Brands
• Partnering with key suppliers to reduce harmful ingredients and sustainable packaging
• Implementing ongoing security awareness training and simulated phishing attacks for employees

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct addressing ethical sourcing, employment practices, and health and safety

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Sustainable Products & Innovation

• Inspired By Nature product line

Awards & Recognition

• Forbes America’s Best Employers for Diversity (2019 and 2020)

Environmental Metrics

ESG Focus Areas

• Human Capital
• Diversity, Inclusion and Belonging
• Philanthropy and Community Impact
• Environmental Sustainability and Responsible Sourcing
• Data Protection and Cybersecurity

Environmental Achievements

• Reduced energy usage companywide through various initiatives including reduced working hours, LED lighting installation, and energy-efficient HVAC units.
• Installed solar panels on warehouses in Europe.
• Converted store delivery system to a more efficient pool distribution model, reducing truck miles.
• Reduced overall footprint by over 400 stores and 2 distribution centers.
• Launched Inspired By Nature product line with sustainable packaging.

Social Achievements

• Improved score to 95 out of 100 on the Human Rights Campaign’s Corporate Equality Index (CEI).
• Established four Employee Resource Groups (ERGs) for Women, LGBTQ+, Black, and Hispanic employees.
• Launched public-facing DIB website.
• Continued multi-phase DIB leadership training.
• Added paid parental leave program providing 6 weeks of fully paid leave.

Governance Achievements

• Established SBH Inspires Foundation to implement charitable initiatives.
• Strengthened cybersecurity governance structure with CISO reporting directly to the Audit Committee Chair.

Climate Goals & Targets

Environmental Challenges

• Reducing environmental impact across global footprint.
• Maintaining and growing assortment of minority and women-owned brands.
• Managing evolving risks associated with cybersecurity threats.

Mitigation Strategies

• Partnered with Slalom to build out and advance ESG framework, focusing on sustainable packaging and responsible supply chain.
• Actively building off legacy of partnering with women and minority-owned beauty brands.
• Chief Information Security Officer (CISO) reports directly to the Chair of the Audit Committee; quarterly reports to the Audit Committee and/or the full Board on data protection and cybersecurity matters.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct addressing ethical sourcing, employment practices, and health and safety.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB standards for specialty retailers

Sustainable Products & Innovation

• Inspired By Nature product line
• WUNDERBAR product line (Europe)

Awards & Recognition

• Forbes America’s Best Employers for Diversity (2019 and 2020)

Environmental Metrics

ESG Focus Areas

• Human Capital
• Diversity, Inclusion and Belonging
• Philanthropy and Community Impact
• Environmental Sustainability
• Responsible Sourcing and Supply Chain
• Data Protection and Cybersecurity

Environmental Achievements

• Retrofitted 1650 stores with LED lights (US fleet now fully LED)
• Corporate Support Center transitioned to LED lighting, installed EV charging stations and an Energy Management System
• Mexico: retrofitted 20 stores to LED, installed 50 energy-efficient HVAC units, testing integrated facilities management solution

Social Achievements

• Launched four Employee Resource Groups (ERGs): Women, LGBTQ+, Black, and Hispanic associates
• Achieved a 100/100 score on the Human Rights Campaign’s Corporate Equality Index (CEI)
• SBH Inspires Foundation raised over $28,000 to support efforts against domestic violence and abuse
• Donated over $60,000 worth of product to shelters supporting those in transition
• Employee Disaster Relief Fund raised over $31,000

Governance Achievements

• Board and Nominating, Governance and Corporate Responsibility Committee oversee ESG matters
• Quarterly and annual reporting to the Board on sustainability initiatives
• Strengthened Board’s cybersecurity governance with appointment of Erin Nealy Cox as Chair of the Nominating, Governance and Corporate Responsibility Committee

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct addressing ethical sourcing, employment practices, and health and safety

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB (specialty retailers)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Inspired By Nature (Ion brand) with sustainable packaging
• WUNDERBAR (Europe) with sustainable packaging and eco-friendly ingredients

Awards & Recognition

• Forbes America’s Best Employers for Diversity (2019, 2020)
• Newsweek and Plant-A Insights Group 5-Star rating as one of America’s Greatest Workplaces for Diversity