Climate Change Data

Puig Brands, S.A.

Climate Impact & Sustainability Data (2020, 2021, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:18,145 tCO2e/year
Scope 1 Emissions:1,610.35 tCO2e/year
Scope 2 Emissions:0.00 tCO2e/year
Scope 3 Emissions:16,534.79 tCO2e/year
Renewable Energy Share:100% (at Chartres factory)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • 20-25% reduction in volume of Lifestyle brand coffrets
  • 100% of folding cardboard from sustainably managed forests
  • 100% of alcohol from natural sources
  • Zero waste to landfill
  • Carbon neutral production
  • 100% renewable electricity in the facilities managed by Puig
  • 84% reduction in paper consumption per employee
  • 100% renewable energy at the Chartres factory (France)
  • -16% reduction of overall transport and distribution emissions

Social Achievements

  • Launched Covid-19 Committee to ensure employee safety and well-being
  • Adapted Vacarisses factory to manufacture hydroalcoholic gels, donating 500,000 units
  • Implemented various preventive measures (organizational, hygiene, protection, health) to combat Covid-19
  • Continued #BeCampaigns wellness program, adapting to pandemic circumstances
  • Launched Invisible Beauty Makers program, supporting social entrepreneurs
  • Maintained high level of service despite economic downturn, achieving a stock reduction of more than 20%

Governance Achievements

  • Created ESG Committee to implement sustainability commitment
  • Restructured the business into three divisions (Beauty and Fashion, Charlotte Tilbury, Derma)
  • Established a new delegate committee for 2021: the ESG commission
  • 94% of employees in the fragrance business unit completed ethics and compliance training

Climate Goals & Targets

Medium-term Goals:
  • New, more ambitious long-term goals for 2030 aligned with major international goals

Environmental Challenges

  • Covid-19 pandemic significantly impacted sales and operations
  • Fragrance market fell 29% globally, with a 32% drop in Puig's sales
  • Supply chain disruptions due to the pandemic
  • Changes in consumer habits and preferences
Mitigation Strategies
  • Created a crisis committee to navigate the pandemic
  • Prioritized employee safety through remote work and strict protocols
  • Cut expenses and investments in fixed assets
  • Adapted planning processes to more dynamic cycles
  • Developed alternative sourcing strategies
  • Implemented a global internal communication strategy to keep employees informed and engaged
  • Reoriented the #BeCampaigns wellness program to adapt to pandemic safety measures

Supply Chain Management

Supplier Audits: 189 suppliers evaluated by EcoVadis; 3 full audits and 18 technical audits conducted

Responsible Procurement
  • Sustainable Sourcing Policy (SSP)
  • Ethical Code

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Core option)

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 22716:2008

UN Sustainable Development Goals

  • SDG 7 (Affordable and Clean Energy)
  • SDG 12 (Responsible Consumption and Production)
  • SDG 13 (Climate Action)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:551,064.06 tCO2e (gross), 541,764.06 tCO2e (net)
Scope 1 Emissions:6,258.4 tCO2e
Scope 2 Emissions:2,385.0 tCO2e
Scope 3 Emissions:542,420.6 tCO2e
Renewable Energy Share:45%
Total Energy Consumption:32,879,080.7 kWh
Water Consumption:199,424.1 m3

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Achieved carbon neutrality in scopes 1 and 2 through emissions offsetting projects.
  • Obtained an A- rating from the Carbon Disclosure Project (CDP), placing them among the top 6% of companies.
  • 50% reduction in scope 1 and 2 emissions (compared to 2019).
  • 30% reduction in scope 3 emissions (compared to 2019).

Social Achievements

  • Launched the third edition of the Janus Program, aimed at developing future management talent.
  • Invested €3.4 million in training, benefiting over 3,000 employees.
  • Maintained a 97/100 equality index in France (4 points higher than in 2020).
  • Donated €1.79 million (including €0.50 million in-kind) through various social initiatives.

Governance Achievements

  • Launched the ESG 2030 Agenda, setting ambitious environmental and social goals.
  • Created an ESG Committee to oversee sustainability efforts.
  • Three additional family members joined the Board of Directors in January 2021.
  • Revised company values to align with the new group composition.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050.
Medium-term Goals:
  • 15% reduction in packaging volume by 2025, 30% by 2030.
  • 90% natural origin ingredients in new perfumery and personal care products by 2025.
Short-term Goals:
  • Reduce water consumption in Vacarisses plant (fully operational by 2023).

Environmental Challenges

  • Supply chain disruptions due to the pandemic and raw material shortages.
  • Increased prices of raw materials and services.
  • Increased regulatory pressure related to sustainability and packaging.
  • Changes in consumer preferences towards more sustainable products.
Mitigation Strategies
  • Sought alternative suppliers and raw materials.
  • Improved control of operational sales forecasts.
  • Adapted logistics processes to address Brexit and other challenges.
  • Developed innovative sustainable products and eco-efficient packaging.

Supply Chain Management

Supplier Audits: 274 suppliers evaluated (93% of inventory materials) using EcoVadis.

Responsible Procurement
  • Sustainable Sourcing Policy
  • Ethical Code

Climate-Related Risks & Opportunities

Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Innovation in sustainable products

Reporting Standards

Frameworks Used: GRI Standards (Core option), UN Global Compact, Science Based Targets initiative (SBTi), Task Force on Climate-related Financial Disclosures (TCFD), Carbon Disclosure Project (CDP)

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 22716:2008, LEED Gold (Barcelona headquarters), EMAS and FSC (Apivita), OCS 100, BCI, GOTS (Paco Rabanne), Leaping Bunny (Charlotte Tilbury)

Third-party Assurance: Audax Auditores

UN Sustainable Development Goals

  • SDG 5
  • SDG 4
  • SDG 10
  • SDG 12
  • SDG 3
  • SDG 14
  • SDG 15

Various initiatives support gender equality, education, reduced inequalities, sustainable consumption, health, ocean protection, and biodiversity.

Sustainable Products & Innovation

  • Refillable formats for Paco Rabanne and Jean Paul Gaultier fragrances.
  • Products with 90% natural origin ingredients.

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:661,907 tCO2e/year
Scope 1 Emissions:4,180 tCO2e/year
Scope 2 Emissions:2,269 tCO2e/year
Scope 3 Emissions:655,458 tCO2e/year
Renewable Energy Share:59.1% of total energy use
Water Consumption:285,042.4 m3/year
Waste Generated:3,782,595 tons/year
Carbon Intensity:154 tCO₂e/€M

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • -9% GHG emissions (tCO₂e) from net revenue (€M) vs 2022
  • Achieved a score of 70/100 and received the EcoVadis Gold Medal (increased from 67 in 2022)
  • Received an A in the Climate Change category by the CDP (Carbon Disclosure Project), placing Puig in the top 2% of more than 21,000 companies listed worldwide
  • 82% of electricity consumed came from renewable sources
  • Five of the eight factories achieved zero waste to landfill

Social Achievements

  • Celebrated the 8th edition of the Makers initiative, part of Invisible Beauty, the Puig social action program
  • Partnered with the PhotoVogue Festival 2023
  • All own brands have differentiated environmental or social objectives associated with their brand purposes
  • Launched Leader In Training program (LIT) for leaders in the organization
  • Opened new, more versatile corporate spaces for a better work experience

Governance Achievements

  • Implemented a new compliance model that reinforces the area of regulatory compliance
  • Approved and launched a new version of the Ethical Code aligned with the new ambitions of the company
  • Included ESG criteria in the annual compensation of Puig leaders
  • Joined the Sustainable Markets Initiative Fashion Task Force project
  • Received the maximum score on all components of the evaluation scorecard from the Institute of Internal Auditors (IAI)

Climate Goals & Targets

Long-term Goals:
  • Net zero organization by 2050
Medium-term Goals:
  • Net zero organization by 2050
  • Helping limit global warming to 1.5 °C by 2030
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Uncertain environment due to geopolitical stress, rising interest rates, rising energy prices, high inflation, impacting slowing economic growth
  • Deceleration of international trade
  • Continued disruption in the supply chain
  • Slower-than-expected recovery in China
  • General rise in inflation causing reductions in consumer spending
Mitigation Strategies
  • Focus on owned brands and Niche category
  • Expansion into other categories through acquisitions
  • Investment in regions with great growth potential
  • Strengthening main markets in Europe and the Americas
  • Implementation of ESG roadmap

Supply Chain Management

Supplier Audits: 54 audits carried out on suppliers and third parties in 2023

Responsible Procurement
  • Sustainable Sourcing Policy
  • Supplier Code of Conduct
  • EcoVadis and Sedex evaluations
  • SMETA methodology audits

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: EcoVadis Gold Medal, Positive Luxury (Kama Ayurveda), B Corp (Apivita), ISO 14001, ISO 45001, ISO 22716, ISO 9001

Third-party Assurance: Ernst & Young, S.L.

UN Sustainable Development Goals

  • 1
  • 5
  • 8
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 17

The 16 programs within the 2030 ESG Agenda directly impact the UN Sustainable Development Goals.

Sustainable Products & Innovation

  • Refillable products
  • Products with naturally derived ingredients

Awards & Recognition

  • WWD Honor for Best-Performing Beauty Company
  • Designer of the Year Award for Dries Van Noten
  • Sustainable Beauty Awards 2023 (Apivita)
  • BW Supply Chain Competitiveness Awards 2023 (Kama Ayurveda)
  • Assocham Awards (Kama Ayurveda)
  • 2nd Sustainability Conclave and Awards 2023 (Kama Ayurveda)