Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product quality and safety
• Responsible marketing and labeling
• Community impact
• Consumer protection
• Cybersecurity, data security, and privacy
• Diversity, equity, and inclusion
• Employee health, safety, and well-being
• Ethics and compliance
• Human rights and labor
• Talent attraction, development, and retention
• Climate and carbon footprint
• Plastics and packaging
• Responsible sourcing

Environmental Achievements

• Improved efficiencies across Herbalife Innovation and Manufacturing (HIM) facilities in the U.S. and China and office facilities in the U.S. and Mexico; launched solar-powered office space in Costa Rica supporting emissions reductions
• Removed 322 metric tons of virgin plastic (2.5% of total plastic use) from product packaging by including 25% post-consumer recycled materials into Formula 1 product packaging in select markets
• Removed 8 million scoops annually from products in Europe and Africa markets, eliminating an estimated 45.6 metric tons of virgin plastic per year in 2023
• Recycled 5,475 metric tons of plastic and other materials from sales and distribution centers in 30+ markets
• 61% of suppliers of product ingredients assessed for sustainability practices; set targets to assess 80% by 2025 and 100% of soy and cocoa suppliers by 2025
• Reduced the size of the monthly magazine Xtra Xtra in Mexico, optimizing the size and number of pages, resulting in an 80% reduction in paper usage (66.4 metric tons per year)
• Eliminated printed Distributor Rules of Conduct books in 83 of 95 markets (87%), saving approximately 472 metric tons of paper

Social Achievements

• Ranked as a top 10 employer and one of America’s best employers for diversity by Forbes in 2022
• 79% of employee respondents cited a positive perception of the Company and job satisfaction
• Launched an employee leadership development mentorship program with 600 participants globally
• Conducted 860+ trainings by the Office of Health and Nutrition, reaching 5 million audience views from Independent Distributors
• Received 10 awards for best-in-class offerings of HN Grow mobile app
• Implemented more than 20 programs and partnerships with nonprofit organizations focused on health, wellness, and nutrition
• Partnered with the Food Safety and Standards Authority of India, reaching 10 million+ people and upgrading 40 prominent locations to provide healthy meals and nutrition education
• 178 nonprofit organizations in 59 countries received grants through Herbalife Nutrition Foundation in 2022

Governance Achievements

• Herbalife won the Most Honored Company title from 2022 Institutional Investor
• Established a Global Sustainability Steering Committee and working groups focused on ESG topics
• Conducted a comprehensive global materiality assessment and launched a global database to centralize sustainability data

Climate Goals & Targets

Environmental Challenges

• Reducing carbon emissions across the entire value chain
• Improving water stewardship throughout the value chain
• Reducing waste sent to landfills
• Ensuring responsible sourcing of ingredients
• Managing risks related to corruption
• Maintaining data security and privacy

Mitigation Strategies

• Developing a global baseline greenhouse gas (GHG) inventory
• Implementing energy efficiency upgrades at HIM facilities
• Modernizing office buildings with energy-efficient systems
• Installing a rooftop solar array at the Costa Rica office
• Introducing electric vehicles for product deliveries in India
• Implementing a responsible sourcing program engaging suppliers on environmental and social issues
• Implementing robust cybersecurity measures and training programs
• Providing mandatory privacy training to employees and making available various privacy-related training videos, guidebooks, and other materials to both employees and Independent Distributors

Supply Chain Management

Supplier Audits: 61% of suppliers assessed in 2022; target of 80% by 2025

Responsible Procurement

• Supplier Code of Conduct
• EcoVadis and Sedex memberships for high-risk suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB, UNGC

Certifications: ISO 45001 (HIM facilities)

Third-party Assurance: Apex

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Vegan product line (planned for 2023)
• Formula 1 canisters with 25% PCR

Awards & Recognition

• 40+ awards and recognitions for product quality and excellence
• World’s #1 Health Shake (2022)
• World’s #1 brand in active and lifestyle nutrition (2022)
• Top ranking in weight management and well-being (2022)
• Most Honored Company from 2022 Institutional Investor

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Health
• Affordability of Food

Environmental Achievements

• 81% of protein in Herbalife's global products is plant-based.
• Aims to achieve net zero emissions in all factories, warehouses and offices by 2050.
• Aims to achieve 100% responsibly sourced shipper boxes and 100% responsibly sourced paper-based packaging.

Social Achievements

• Herbalife's Formula 1 meal replacement outperforms other meals in terms of price, CO2 footprint, and nutrient density.
• Over 1.8 billion protein shake servings sold worldwide (2022).
• 5 million protein shakes consumed daily worldwide (2022).
• 82 million canisters of protein shakes sold worldwide (2022).

Governance Achievements

• Herbalife has signed the EU Code of Conduct for Responsible Food Business and Marketing Practices.

Climate Goals & Targets

Environmental Challenges

• The ‘impossible trinity’ of food policies: achieving environmental sustainability, health, and affordability simultaneously.
• Inefficiency of current EU frameworks in achieving sustainable, healthy, and affordable diets.
• High food prices due to input costs, climate shocks, and value chain inefficiencies.
• Micronutrient deficiencies in the EU.
• Lack of consumer understanding of nutrient density.

Mitigation Strategies

• Promoting plant-based diets as a solution for sustainability and affordability.
• Increasing nutrient density through food fortification.
• Using tax and subsidy policies to make healthy and sustainable choices more accessible.
• Improving consumer knowledge on nutrient density through information and education.
• Supporting research and development in alternative protein-based food production.

Supply Chain Management

Responsible Procurement

• Aims to achieve 100% responsibly sourced shipper boxes and 100% responsibly sourced paper-based packaging.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Herbalife's Formula 1 meal replacement