Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Philanthropy
• People

Environmental Achievements

• Reduced GHG emissions from Avon operations by 28.7 percent (surpassing the 20 percent reduction goal)
• Reduced water intensity by 32 percent from 2005 baseline levels
• Reduced waste per unit by 2.6 percent since 2005
• Achieved an 81.8 percent recycling rate at manufacturing sites

Social Achievements

• Raised more than $957 million through philanthropic efforts for breast cancer and domestic violence
• Empowered millions of women through Avon Independent Sales Representatives earnings opportunity
• Women comprised 60 percent of the total Avon workforce, 70 percent of managers, and 40 percent of senior leaders in 2013

Governance Achievements

• Received a perfect score of 100 out of 100 on the Human Rights Campaign Foundation’s Corporate Equality Index for the second consecutive year
• Conducted a confidential culture survey with 84% participation, achieving an 83 percent culture score

Climate Goals & Targets

Environmental Challenges

• Slower than anticipated progress toward 2020 waste reduction goal due to heavy sludge from wastewater treatment
• Fluctuation in GHG emissions due to business growth and diminishing returns on renewable energy investments
• Increase in TRC rate in North America in 2013

Mitigation Strategies

• Finding reuse options for sludge and other waste materials
• Implementing a waste-to-energy program
• Educating Associates on environmental initiatives
• Continuing to pursue 2020 goal of a 20 percent GHG reduction
• Addressing the need for improvement in North America's TRC rate

Supply Chain Management

Supplier Audits: 1,234 audits in 39 countries in 2013

Responsible Procurement

• Supplier Code of Conduct covering child labor, forced labor, working hours, fair wages, health and safety, environmental management, etc.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3 Sustainability Reporting Guidelines (Self-declared Application Level B)

Sustainable Products & Innovation

• Refilable packaging for mark. brand and Encanto Lotion
• HDPE to PET conversion project for body washes

Awards & Recognition

• CDP S&P 500 Climate Change Report (disclosure score of 86, performance score of B)
• Human Rights Campaign’s Corporate Equality Index (perfect score of 100)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Gender Equality
• Diversity & Inclusion
• Circular Economy
• Breast Cancer Awareness
• Gender-Based Violence

Environmental Achievements

• Achieved all 2020 environmental targets for carbon emissions, waste and recycling, and water use
• Achieved zero Scope 2 emissions from electricity use, with 100% of energy purchases coming from renewable sources
• All brochures printed on sustainably sourced paper
• 90% recycling rate in operations
• 20% reduction of total carbon emissions from Avon operations on an absolute basis (exceeded target)
• 30% reduction in waste on a per unit basis (exceeded target)
• 40% reduction in water intensity (achieved)

Social Achievements

• Launched #IsolatedNotAlone campaign, reaching over 96 million people on social media
• Donated US$9.2 million tackling breast cancer and violence against women and girls
• Produced over 9 million units of hand sanitiser and over 4 million face masks globally
• Expanded make-up shades to match a wider range of skin tones
• Implemented gender-based violence protocol
• Launched Avon’s Essence, employee value proposition focused on inclusion and purpose
• Supported Representatives' transition to online selling
• Donated US$4.7 million globally to help end violence against women and girls
• Donated US$4.2 million globally to support breast cancer education and awareness

Governance Achievements

• Simplified Code of Conduct, published in 20 languages
• Trained senior leaders on ethics and compliance
• Delivered E&C training to all employees (11,500 trained in 2020)

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacting employees, Representatives, and communities
• Increased gender-based violence during lockdowns
• Supply chain disruptions (implied)
• Need to improve recyclability of packaging

Mitigation Strategies

• Repurposed production lines to produce hand sanitiser
• Supported Representatives' transition to online selling
• Worked with NGO partners to support women at risk of gender-based violence
• Launched new hand sanitiser product
• Provided soap and hand sanitiser to Representatives
• Accelerated digital support and training for Representatives
• Implemented enhanced safety measures in factories and offices
• Partnered with external organizations to assess and improve packaging recyclability

Supply Chain Management

Supplier Audits: 745 factories onboarded to SEDEX; 2,084 suppliers signed updated Supplier Code of Conduct

Responsible Procurement

• Supplier Code of Conduct (updated in 2020 with new environmental requirements)
• Social Responsibility Guidebook for Suppliers
• HERproject (India)
• Bangladesh Accord signatory

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 5 (Gender Equality)
• Goal 13 (Climate Action)

The report highlights how Avon's initiatives contribute to these goals.

Sustainable Products & Innovation

• Distillery (vegan product range)

Awards & Recognition

• Women Economic Forum (Colombia)
• Global Business Excellence Awards (Turkey)

Environmental Metrics

ESG Focus Areas

• Gender equality
• Breast cancer awareness
• Gender-based violence
• Sustainable packaging
• Climate change
• Sustainable sourcing
• Diversity and inclusion
• Supply chain ethics

Environmental Achievements

• Water intensity decreased 12% year on year
• Waste to landfill in operations decreased by 42%
• 80% of packaging is reusable, recyclable or compostable
• Scope 1 and 2 emissions reduced by 4.6% year on year
• 87% of all product ingredients are natural
• 90% of all product ingredients are biodegradable

Social Achievements

• $3.9m donated to gender-based violence support services
• 52% of senior team members are women
• $9.8m donated to NGOs
• 406,000 women were directly helped through grants and donations to NGOs tackling breast cancer
• 271,000 women were directly helped through grants and donations to NGOs tackling gender-based violence
• Launched Avon Rewards in 14 markets
• Upgraded the Avon On app
• Launched My Story Matters campaign

Governance Achievements

• Launched a new Human Rights statement approved by the Board of Directors
• Joined the Responsible Mica Initiative (RMI)

Climate Goals & Targets

Environmental Challenges

• Embedding sustainability credentials across all products in diverse markets
• Waste and recycling infrastructure varies globally
• Reducing scope 3 emissions
• Addressing verbal abuse and its role in gender-based violence

Mitigation Strategies

• Prioritizing progress over perfection and setting clear goals
• Developing enhanced labeling and collection/reuse programs
• Developing Science Based Targets
• Launching an online portal with information on verbal abuse and support resources
• Providing training for Representatives and associates on gender-based violence

Supply Chain Management

Responsible Procurement

• Code of Conduct
• Ethical sourcing of materials
• Monitoring of suppliers and third-party production facilities
• Membership in RSPO and RMI
• Sponsorship of Responsible Recruitment Toolkit (RRT)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Natura &Co Commitment to Life, UN Sustainable Development Goals

UN Sustainable Development Goals

• Goal 5: Gender equality
• Goal 3: Good health and well-being
• Goal 8: Decent work and economic growth
• Goal 12: Responsible consumption and production
• Goal 13: Climate action

Initiatives contribute to these goals through various programs and donations

Sustainable Products & Innovation

• Far Away eau de parfum with 100% upcycled vanilla beans
• Distillery range with environmentally-conscious packaging and waterless formulas
• Clearskin products with reduced plastic packaging

Awards & Recognition

• Top global brand in Kantar's Who Cares, Who Does? report

Environmental Metrics

ESG Focus Areas

• Empowering women through entrepreneurship
• Reducing carbon emissions
• Driving packaging circularity
• Driving formula circularity
• Reducing waste and water use
• Protecting biodiversity and nature
• Defending human rights
• Embedding diversity, equity and inclusion
• Paying the living wage
• Helping end violence against women
• Raising awareness about breast cancer

Environmental Achievements

• Reduced scope 1, 2, and 3 emissions by 8% (market-based) in 2021 compared to 2020.
• Reduced scope 1 and 2 emissions by 14% in the Philippines and 16% in South Africa year-on-year.
• 79.7% of packaging was reusable, recyclable, or compostable by the end of 2022.
• Used 4,425 fewer tonnes of plastic packaging in 2022 compared to 2021.
• Reduced water use intensity by 1.2% compared to 2021.
• Reduced waste intensity by 3.8% compared to 2021.
• Reduced operational landfill waste by 74%.

Social Achievements

• 51.7% of leadership team members were women in 2022.
• Paid all associates at least the Living Wage for their region.
• Gender pay gap reached -0.79% in 2022.
• Launched new global Menopause and UK Family Leave policies.
• Launched a new volunteering policy, with associates donating 12,128 volunteering hours in the first few months.
• Donated US$4.4 million to breast cancer awareness campaigns in 45 countries.
• Donated more than US$3.5 million to end gender-based violence.
• Supported Ukrainian associates, Representatives, and communities following the war.
• Donated US$200,000 to support The Red Cross work in Ukraine and donated over 37 tonnes of cosmetics, hygiene products and clothing to support Ukrainians.

Governance Achievements

• Launched Equity and Inclusion Position outlining commitment to equitable employment policies.
• Completed the challenging task of setting our scope 3 carbon emissions baseline and understanding its main drivers.

Climate Goals & Targets

Environmental Challenges

• Socio-political and economic challenges, particularly the war in Ukraine.
• Supply chain disruptions.
• Setting a scope 3 carbon emissions baseline and understanding its main drivers.

Mitigation Strategies

• Provided wellbeing, financial, and logistical support to Ukrainian associates and Representatives.
• Launched critical material policies and action plans covering six items associated with social or environmental risks.
• Developed evidence-based, costed strategies for carbon reduction in key focus areas.

Supply Chain Management

Supplier Audits: 347 new Avon suppliers signed the Natura &Co Supplier Code of Conduct by 2023.

Responsible Procurement

• Natura &Co Human Rights Statement
• Natura &Co Supplier Code of Conduct
• Critical material policies and action plans
• Traceability and certification requirements for critical materials

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals

Sustainable Products & Innovation

• LOV|U a Touch fragrance with DreamwoodTM oil
• Glimmerstick eyeliners (98% biodegradability)
• Hydramatic Matte Lipstick with biofermented hyaluronic acid

Awards & Recognition

• 2022 Global Green Beauty Award (Clean Break Cleanser)
• Management Today’s Trailblazer of the Year award (Angela Cretu)