ULTA BEAUTY, INC.

Climate Impact & Sustainability Data (2022)

Commitment that 50% of packaging from products sold at our stores will be recyclable, refillable, or made from recycled or bio-sourced materials by 2025.
Retail stores are focused on energy reduction efforts by maintaining safe indoor air for all customers while products are being used in our salons, using adequate energy-efficient lighting, managing the in-store temperatures, and making efficient use of water needed for our salon services.
We will continue to look for ways to reduce our carbon footprint by investments in renewable energy credits and working with our brand partners to identify ways to work together to reduce Scope 3 emissions.

Increased our assortment of Black-owned and Black-founded brands by 34% with the addition of 12 Black-owned and Black-founded brands, supporting our progress towards our commitment to dedicate 15% of our brand assortment to Black-owned, Black-founded and Black-led brands over time.
Empower and inspire guests to make informed and sustainable product choices through our unique Conscious Beauty at Ulta Beauty® platform.
Inclusive recruitment strategies, dedicating time to celebrate intersectionality and types of diversity that are not otherwise formally recognized, encouraging associates to build personal habits through everyday inclusive actions, and managing a diverse leaders program to empower, inspire, and educate high-potential diverse associates.

Established processes for sharing data and performing third-party risk assessment and regular disaster recovery planning and response readiness testing.
Strengthened our data protection capabilities through investments and training.
All Ulta Beauty associates have a role as stewards of company data, and we educate them on how to keep data safe.

Short-term Goals:

Commitment that 50% of packaging from products sold at our stores will be recyclable, refillable, or made from recycled or bio-sourced materials by 2025.

Persistent cost pressures from macroeconomic trends, including rising wage rates and higher transportation and shipping costs.
Ongoing headwinds from channel and category mix shifts.
Elevated levels of inventory shrink relative to historical levels.

Developed a continuous improvement capability to identify and activate meaningful, cross-functional process optimization opportunities.
Upgrading our enterprise resource planning platform to increase efficiency and support future growth.
Enhancing our supply chain network to increase agility, speed and cost-efficiency.
Taken, and may continue to take, certain operational and strategic actions to protect against rising inventory shrink.

All brand partners and respective subcontractors and their facilities are subject to the applicable Ulta Vendor Standards, which set forth the ethical, legal, social, and workplace standards to meet in order to do business with Ulta Beauty.

new or additional legal, legislative, and/or regulatory requirements to reduce or mitigate the effects of climate change on the environment