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 FY 2012 by 6% (absolute)
- All types of waste generation down from FY 2012 by 11–18% (absolute); recycling up from FY 2012 by 4% (absolute)
- C2C certifications or re-certifications 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 unit cartons and hangtags
Social Achievements
- Aveda Mission Leader™ platform for employee engagement implemented
- $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
- Blaine employee volunteer participation rate of 35%
Governance Achievements
- Joined other businesses in BICEP to advocate for science-based climate change policy
- 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 (2020)
- Company is zero-waste to landfills for manufacturing and distribution and for product returns and excess inventory (2020)
- Water from robust water supplies; returning to ecosystems in healthy condition, at least 10% total reduction in use (2020)
- 100% of Aveda employees go home uninjured: TIR = 0 (2020)
- 100% employee volunteerism (2020)
- 100% network salon participation in Earth Month (2020)
- 100% active participation of the network in “ecosalon” activities/certification (2020)
- Leave No Trace—packaging in closed loop C2C system. Packaging materials are recovered for reuse and/or are compostable (2020)
Short-term Goals:
- Achieve an average of 97% naturally derived ingredients for new retail product launches (2016)
- Implement formalized review of manufacturing energy requirements during new product formulation and production process development (2016)
- Aveda funding for 12 additional projects that deliver environmental and/or social benefits to our sourcing communities (2016)
- Identification of supply chain water-related risks for at least 6 key ingredients (2016)
- 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 ingredients change over time (2016)
- 14% reduction in GHG emissions per kg production (2016)
- 80% recycling rate for manufacturing (2016)
- 98% recycling rate for Midwest Distribution Center (2016)
- A total incidence rate no greater than 1.45 (2016)
- At least 50% participation of all North American employees in volunteer activities (2016)
- At least $7 million in Earth Month fund-raising (2016)
- At least 90% Concept Salon participation (2016)
- Over 4,000 network professionals will engage with Aveda Mission Leader (approximately 10% of all network professionals) (2016)
- Over 1,000 Aveda Mission Leader users will participate in the Green Salon Certification Project (2016)
- 100% of store advisors and staff will participate in Aveda Mission Leader (2016)
- 100% increase in bio-based polymer packaging (by tonnage) from FY 2014 (2016)
Environmental Challenges
- Increase in energy use through process improvements for high-performance formulas that require added energy
- Increase in production levels with actions to reduce environmental impact
- Safety-related incidents (including near misses and property damage) increased by 65% between FY 2012 and FY 2014
- 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)
- Energy use up from FY 2012 by 17% (absolute)
- Greenhouse gas use up from FY 2012 by 9% (absolute)
- Continue to seek higher recycled content in aluminum tubes while maintaining required performance characteristics
- Level of investment needed to increase traceability, build stronger local communities, increase small supplier reliability and quality, and improve small supplier business resilience
- Complete documentation of Aveda supplier alignment with the Aveda Mission
Mitigation Strategies
- 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
- Address lowering energy and water consumption for guests and salons using Aveda products
- Maximize Aveda network participation in Mission-related activities
- Full Circle packaging take-back program rolled out to Aveda stores
- Engage with Schneider Electric for a thorough energy audit of the facility
- Incorporate accountability for addressing resource use with capital expenditure planning for the facility
- Better coordination between product development and manufacturing, ongoing research into formulations that may be more energy efficient in production, and capital spending to increase operational efficiencies via deployment of technologies such heat exchangers on tanks and high-efficiency motors for mixing
- Working with the Yawanawa on launching their payment for ecosystem services project to enable the Yawanawa to protect carbon stocks and other values on their territory in Brazil
- Maintained purchases of offsets and RECs equivalent to the GHG inventory for Aveda operated U.S. facilities related emissions (Scope 1 and 2)
- Relaunch planned for FY 2016 for Green Salon Project
Supply Chain Management
Supplier Audits: 52 CoC audits, 41 IMO audits
Responsible Procurement
- ELC Supplier Code of Conduct
- Aveda Green Ingredient Policy
- Mission-aligned supplier selection
- Support for sustainable agriculture and organic ingredients
Climate-Related Risks & Opportunities
Physical Risks
- Crop disruptions due to climate change
Transition Risks
- Regulatory changes, market shifts
Opportunities
- Development of energy-efficient products
Reporting Standards
Frameworks Used: Valdez/Ceres Principles, GRI, Cradle to Cradle
Certifications: Cradle to Cradle (C2C)
Sustainable Products & Innovation
- Botanical Kinetics™ Hydrating face cremes
- Dry Remedy™ hair care line with plant-derived resin
Awards & Recognition
- AmeriStar award for 100% PCR packaging
- Leonard A. Lauder Team of the Year Award