Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product Sustainability
• People (Diversity, Equity & Inclusion, Community Engagement, Ethical Behavior)
• Planet (Greenhouse Gas Emissions, Waste, Water)

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 34% compared to 2017.
• Reduced energy consumption by 14% compared to 2019.
• Achieved 68% recycling rate across factories and distribution centers.
• Reduced water consumption by 18% compared to 2019.

Social Achievements

• Launched Global DE&I project team to develop a three-year roadmap for inclusion.
• Strengthened Code of Conduct for Business Partners.
• Donated resources to support Covid-19 relief efforts and local communities.
• Supported responsible mica sourcing through the Responsible Mica Initiative.

Governance Achievements

• Updated corporate governance at Board level to reflect commitment to fair representation.
• Strengthened anti-corruption standards in Code of Conduct.
• 187 suppliers signed the updated Code of Conduct (95% completion rate).

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to Covid-19.
• Challenges in achieving gender balance in leadership positions.
• Need to further reduce waste and improve recycling rates.
• Need to improve responsible sourcing practices for palm oil and mica.

Mitigation Strategies

• Switched some factory operations to produce hydro-alcoholic gel.
• Established a Global DE&I project team and three-year roadmap.
• Improved waste monitoring and separation across sites.
• Exploring ways to strengthen responsible sourcing practices for palm oil and mica, including increased traceability.

Supply Chain Management

Supplier Audits: 98 suppliers assessed through SEDEX; 198 suppliers assessed in EcoVadis

Responsible Procurement

• Code of Conduct for Business Partners
• Responsible Mica Initiative
• Roundtable for Sustainable Palm Oil (RSPO)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Global Compact, GHG Reporting Protocol

Certifications: Null

Third-party Assurance: KPMG (limited assurance on selected data)

UN Sustainable Development Goals

• Goal 5: Gender equality
• Goal 8: Decent work and economic growth
• Goal 12: Responsible consumption and production
• Goal 13: Climate action

The report details how Coty's initiatives contribute to these goals.

Sustainable Products & Innovation

• CK EVERYONE fragrance (Material Health Certificate)
• Sally Hansen Good. Kind. Pure. nail polish
• COVERGIRL Clean Fresh collection
• philosophy purity facial cleanser reformulation

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Occupational Health & Safety
• Employee Welfare
• Business Ethics & Integrity
• Human Rights & Equal Opportunities
• Customer-Centricity
• Product Quality
• Innovation Culture
• Support of the Arts
• Efficient Management of Waste

Environmental Achievements

• Cleaned up four base camps of 8,000-meter Himalayan mountains, removing 2.2 tons of waste.
• Launched Bally Peak Outlook Capsule with 100% of net proceeds benefiting mountain preservation.
• Launched B-Echo collection of multi-functional bags made from 100% recycled nylon and regenerated materials, saving the equivalent of 34,000 plastic bottles in H1 2021.
• Improved total electric power and heating at Caslano headquarters to 85% renewable energy, saving over 28 tons of carbon emissions.

Social Achievements

• Implemented Covid-19 protocols globally, adhering to WHO guidelines and creating an Executive Solidarity Fund to support employees.
• Conducted internal bias training and a global Diversity and Inclusion Survey, resulting in a positive assessment of Bally as a safe and favorable workplace.
• Published Bally Code of Ethics online in seven languages.
• Launched Bally Employee Resource Group (BERG) in 2021 to address DEI and environmental issues.
• Supported Il Porto di Coenzo, a non-profit organization in Italy employing people with disabilities.

Governance Achievements

• Published Bally Code of Ethics, Conflict of Interests policy, and Harassment and Non-Discrimination Policy.
• Improved transparency score by +14% in the Fashion Transparency Index 2021.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic and its impact on operations and employees.
• Supply chain disruptions.

Mitigation Strategies

• Implemented remote working, financial support programs, and enhanced health and safety protocols.
• Developed a flexible sourcing model, adapting the supply chain to meet volume thresholds while maintaining long-lasting relationships with suppliers.

Supply Chain Management

Supplier Audits: Audited by Bureau Veritas

Responsible Procurement

• Suppliers sign a Restricted Substances List in compliance with REACH legislation.
• Suppliers adhere to a Code of Conduct including environmental provisions.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN Sustainable Development Goals (SDGs)

Sustainable Products & Innovation

• Bally Peak Outlook Capsule
• B-Echo collection

Environmental Metrics

ESG Focus Areas

• Diversity, Equity, and Inclusion
• Mental and Emotional Well-being
• Local Giving
• Environmental Responsibility and Sustainability

Environmental Achievements

• Conserving energy by adapting paperless processes for pet patient registration and records
• Encouraging staff to adopt green practices at work and home
• Using recycled materials and energy-efficient equipment
• Designing energy-efficient construction and renovations

Social Achievements

• Launched an internal Women’s Leadership program and affinity group
• Pledged $110K in DVM and veterinary technician scholarships at historically Black universities (Florida A&M University and Tuskegee University)
• Sponsored Purdue University’s “This is How We ROLE” program and VetUp! DVM Scholars program
• Partnered with PrideVMC, Penn Foster College, and BlackDVM to support LGBTQ+ community, veterinary technicians, and underrepresented minorities.
• Offered a company-sponsored mental health program providing weekly access to a licensed therapist
• Hosted Health of the Healers and Connect retreats focusing on emotional and mental well-being
• Partnered with the American Veterinary Medical Association’s My Veterinary Life podcast on personal well-being
• Supported over 3,700 local charities through 1,300 hospitals and pet resorts
• Raised over $145,745.00 (including a matching company donation) for Australian wildfire relief
• Supported staff affected by California Wildfires, Hurricane Ida, and other events through NVA Cares
• Participated in American Human’s War Dog Program providing free medical treatment to military dogs
• Partnered with the U.S. Army PaYS Program to help soldiers pursue careers

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Lack of ethnic diversity in the veterinary industry
• High suicide rates and compassion fatigue among veterinary professionals
• Need for improved environmental sustainability across operations

Mitigation Strategies

• Developed scholarships, mentorships, internships, and externships to increase diversity
• Implemented wellness programs to address compassion fatigue and mental health
• Committed to step-changing efforts in reducing greenhouse gas emissions and managing climate risks and opportunities

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Action
• Circular Economy
• Responsible Sourcing
• Health & Well-being
• Diversity & Inclusion
• Community Engagement

Environmental Achievements

• Increased renewable energy share to 74% of electricity use
• Reduced virgin plastic use by 11%
• Reached 18% post-consumer recycled content in plastic packaging
• Supported regenerative agriculture and conservation on 11,296 acres of land

Social Achievements

• Launched a better-for-you beverage merchandising pilot program with positive results
• Increased female representation in Director+ positions by 3 percentage points
• Increased people of color representation in Director+ positions by 1 percentage point
• Expanded employee benefits and well-being programs

Governance Achievements

• Implemented an enhanced enterprise-wide annual compliance training program
• Published a new Responsible Marketing Policy
• Achieved Full Member status in the Responsible Business Alliance (RBA)

Climate Goals & Targets

Environmental Challenges

• Mitigating and adapting to climate change impacts
• Mapping a feasible glidepath to fleet decarbonization
• Minimizing excess water use while maintaining product quality standards
• Navigating the lack of uniformity in recycling infrastructure

Mitigation Strategies

• Exploring new technology and electric heavy-duty trucks
• Deploying innovative water treatment infrastructure
• Accelerating the roll-out of innovative packaging and reuse solutions
• Collaborating to secure federal packaging collection policy

Supply Chain Management

Supplier Audits: 33 audits conducted for Tier 1/Tier 2 suppliers in 2022

Responsible Procurement

• Supplier Code of Conduct
• Third-party certification and verification programs for coffee and cocoa
• KDP Supplier Rating System for factories

Climate-Related Risks & Opportunities

Physical Risks

• Changing weather patterns disrupting ingredient supply chains
• Heat stress and drought impacting communities
• Climate change posing a risk to critical infrastructure

Transition Risks

• Carbon taxes influencing production and distribution
• Regulatory changes

Opportunities

• Advance regenerative agriculture practices
• Invest in watershed health
• Explore fleet electrification and low carbon technologies

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Third-party Assurance: ERM Certification and Verification Services (ERM CVS)

UN Sustainable Development Goals

• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 15: Life on Land
• Goal 17: Partnerships for the Goals

KDP's initiatives contribute to these goals through various programs and strategies outlined in the report.

Sustainable Products & Innovation

• Core Hydration bottles made from 100% recycled PET plastic
• Lightweighting of K-Cup pods

Awards & Recognition

• Canada’s Top 100 Employers
• CDP Supplier Engagement Leader
• Forbes Best Employers for Women
• Newsweek America’s Greatest Workplaces for Diversity
• Newsweek America’s Most Responsible Companies
• Fortune World’s Most Admired Companies
• Newsweek America’s Most Trustworthy Companies
• Empresa Socialmente Responsable (ESR)

Environmental Metrics

ESG Focus Areas

• Responsible & Sustainable Investing

Environmental Achievements

• 68% of portfolio companies have approved SBTi targets (based on GHG footprint)

Social Achievements

• Commitment to identifying and eliminating systemic barriers to create a diverse and inclusive workplace
• Strong organizational culture with equality of opportunity, a diverse team, and an inclusive working environment

Governance Achievements

• Implemented a governance framework for strategy, finance, risk and compliance, remuneration, and responsible & sustainable investing
• JAB partners with two globally recognized Senior Advisors who provide advice on various governance and strategy matters

Climate Goals & Targets

Environmental Challenges

• Maintaining a level of cash flow certainty acceptable to stakeholders given expected returns
• Loss of key talent
• Exposure to market risks, credit risks, and liquidity risks
• Fraud risk

Mitigation Strategies

• Monitoring capital structure, financing, and liquidity; transactional risks; foreign currency and balance sheet risk; counterparty risk; Responsible & Sustainable Investing and reputation risks
• Investment and long-term equity incentive plans; promoting a culture of ownership and opportunity
• Managing and mitigating market, credit, and liquidity risks to acceptable levels; hedging foreign exchange risk through forward contracts and other derivatives; managing interest rate fluctuations through interest rate swaps
• Minimizing fraud risks; continuously monitoring and updating procedures; Code of Conduct

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS, TCFD

Third-party Assurance: KPMG Audit S.à r.l.