Climate Change Data

Schwan Cosmetics

Climate Impact & Sustainability Data (2021-07 to 2022-06, 2023-07 to 2024-06)

Reporting Period: 2021-07 to 2022-06

Environmental Metrics

Total Carbon Emissions:9370.2 tCO2e/year (Scope 1 & 2)
Renewable Energy Share:43.4% of total energy use
Total Energy Consumption:55845 MWh/year
Water Consumption:74206 m3/year
Waste Generated:2096 tons/year
Carbon Intensity:19 g CO2e/unit (FY 2021-2022)

ESG Focus Areas

  • Climate Change
  • Sustainable Sourcing
  • Eco-friendly Packaging
  • Employee Well-being
  • Gender Equality
  • Community Engagement
  • Governance
  • Anti-Corruption

Environmental Achievements

  • Reduced Scope 1 and 2 GHG emissions by 61% from 2017 baseline.
  • Installed a 930 square meter solar power plant in Toluca, Mexico, saving over 150 tons of CO2 annually.
  • Increased Natural Origin Content (NOC) of new formulations to an average of 66%, exceeding the 60% target.
  • Reduced water consumption by 11%.

Social Achievements

  • Implemented a global focus on promoting women and children, lifelong learning, and supporting underprivileged groups.
  • Launched Cosmetic Colors University in Toluca, Mexico, offering training to 15% of the workforce.
  • Sponsored scholarships and provided resources to the Karis Foundation in Bogota, Colombia.
  • Supported various social causes in the Czech Republic and Brazil.

Governance Achievements

  • Established a global whistleblower system.
  • Conducted a comprehensive corruption risk assessment.
  • Implemented a global information security training program.

Climate Goals & Targets

Long-term Goals:
  • Achieve CO2 neutrality by 2040 (Scope 1, 2, & 3)
Medium-term Goals:
  • Reduce Scope 1 and 2 GHG emissions by 54.2% by 2029/2030 (ahead of target)
  • Increase on-site generation of sustainable energy to 30% by 2026/2027
  • Reduce virgin plastic materials for primary packaging by 25% by 2025 (postponed)
  • Reduce virgin plastic materials for secondary packaging by 25% by 2025 (postponed)
  • 100% FSC-certified wood by 2024/2025
  • 100% RSPO-certified palm oil by 2024/2025
Short-term Goals:
  • Reduce waste consumption by 10% globally (target postponed)
  • Reduce water consumption by 10% globally (achieved)
  • Achieve 75% Natural Origin Index for all new formulations (overachieved)
  • 100% vegan in all products (almost achieved)

Environmental Challenges

  • Supply chain disruptions due to raw material and energy shortages.
  • Limited availability of recycled materials for packaging.
  • Need to implement waste reduction measures globally.
  • Achieving 100% supplier compliance with environmental and social standards.
Mitigation Strategies
  • Developed alternative sourcing strategies.
  • Adjusted targets for recycled plastic usage due to material shortages.
  • Implementing waste reduction measures in phases, starting with Heroldsberg.
  • Intensified supplier due diligence and risk assessment.

Supply Chain Management

Supplier Audits: Annual SEDEX SMETA audits; 98% compliance for raw materials, 99% for packaging.

Responsible Procurement
  • Supplier Code of Conduct
  • Supplier onboarding assessment and approval process
  • Membership in RMI and RSPO
  • Focus on FSC-certified wood and RSPO-certified palm oil

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Certifications: ISO 14001 (three entities certified), ISO 22716 (some entities), IFS HPC (some entities)

Third-party Assurance: DQS (limited assurance for Scope 1 & 2 GHG emissions)

UN Sustainable Development Goals

  • Goal 1: No Poverty
  • Goal 4: Quality Education
  • Goal 3: Good Health and Well-being
  • Goal 5: Gender Equality
  • Goal 8: Decent Work and Economic Growth
  • Goal 13: Climate Action

Initiatives contribute to these goals through community engagement, employee training, sustainable practices, and gender equality initiatives.

Sustainable Products & Innovation

  • MicroWoodMatic (wood-based packaging)
  • PURIST (recycled plastic packaging)
  • Faith (clean and vegan liquid liner)
  • Focus (clean and vegan solid liner)

Reporting Period: 2023-07 to 2024-06

Environmental Metrics

Total Carbon Emissions:9405.8 tCO2e/year (Scope 1+2); 51597 tCO2e/year (Scope 3)
Scope 1 Emissions:3108.7 tCO2e/year
Scope 2 Emissions:6297.1 tCO2e/year
Scope 3 Emissions:51597 tCO2e/year
Renewable Energy Share:70.9% of total energy use
Total Energy Consumption:48348 MWh/year
Water Consumption:79.23 Ml/year
Waste Generated:2118.54 tons/year
Carbon Intensity:18 g CO2e/unit (Scope 1,2)

ESG Focus Areas

  • Climate Change
  • Social Accountability
  • Governance

Environmental Achievements

  • Introduced TheBetterBarrel, reducing CO₂ emissions by almost 70% compared to conventional tubes.
  • €7.8 million investment in an on-site solar power plant at German headquarters, achieving 30% self-sufficiency in green electricity.
  • 30% reduction in air freight-based GHG emissions within a single year.
  • Near completion of transition away from Styrofoam packaging materials, eliminating annual consumption of 7500 cubic meters of foamed plastics.

Social Achievements

  • Improved employee retention by 27%, bringing fluctuation down to 19%.
  • Various community engagement initiatives across global facilities (food bank support, Habitat for Humanity, cancer prevention efforts, etc.).

Governance Achievements

  • Enhanced global evaluation of equal pay, achieving 98% parity.
  • Revised and harmonized Code of Conduct for employees and suppliers.

Climate Goals & Targets

Long-term Goals:
  • Zero Scope 1, 2, 3 emissions by 2040
Medium-term Goals:
  • 63% reduction in Scope 1, 2 emissions by FY 2031-32
  • 47% reduction in Scope 3 emissions by FY 2031-32
  • Increase on-site generation of sustainable energy to 30% of electric power consumption until end of FY 2026-27
Short-term Goals:
  • -10% water consumption by end of FY 2024-25
  • Reduce non-hazardous waste to landfill to max. 20% by Business Year 2024-25
  • Zero hazardous waste disposed to landfill by end of FY 2024-25

Environmental Challenges

  • Reduced high inventory levels at customers and normalization in demand following post-pandemic market recovery.
  • Slower than expected market adaptation of sustainable products.
  • Difficulties in accessing incineration facilities in specific subsidiaries.
  • Maintaining accident rates well below the German industry average, particularly for severe incidents.
Mitigation Strategies
  • Prioritized accessible and affordable sustainability, securing a two-year supply of leading sustainable materials.
  • Developed alternative sourcing strategies.
  • Revised landfill target to limit non-hazardous waste to a maximum of 20% by end of FY 2024-25.
  • Comprehensive Health & Safety Training programs.

Supply Chain Management

Supplier Audits: 222/year (69% compliant)

Responsible Procurement
  • Supplier Code of Conduct
  • RSPO and RMI memberships
  • Supplier due diligence process

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, Core Option

Certifications: ISO 14001

Third-party Assurance: DQS CFS GmbH

UN Sustainable Development Goals

  • Goal 1 (No Poverty)
  • Goal 3 (Good Health and Well-being)
  • Goal 4 (Quality Education)
  • Goal 5 (Gender Equality)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 13 (Climate Action)

Initiatives contribute to these goals through various social and environmental programs.

Sustainable Products & Innovation

  • TheBetterBarrel
  • Refilable lip liner
  • Liquid brow pencil with recycled content

Awards & Recognition

  • Not disclosed