environment

environment
We aim to reduce our environmental impact and have a positive impact on the environment and society.

Our new Responsible Growth Strategy is currently being developed. The strategy will outline how we will reduce our environmental impact across our whole value chain and our key environmental metrics, prioritizing carbon, water and waste.

Our Environmental Footprint

Our own operations

We have been making progress on establishing our environmental footprint for our own operations and measuring our environmental baseline.

In 2017 we strengthened and harmonized our Environment, Social and Governance (ESG) performance tracking, deploying CR360 - a global monitoring and reporting tool. CR360 has allowed us to consolidate and capture reliable and verifiable data across all our sites. We have trained our colleagues across our production and administrative sites to use this tool, as well as on environmental management best practice.

We are currently tracking our main environmental indicators such as carbon emissions, energy, water and waste consumption for all our owned sites.  For this first reporting year, we excluded our studios and retail sites as this data was not easily available. We intend to cover all of our own sites in the future.

We also intend to develop global and local actions plans focusing on the activities where our impacts are the highest. For example, between June 2016 and July 2017, our factories represented at least 80% of the water consumption, waste generation and GHG emissions for total Coty owned operations.  

Our progress:

Carbon
From our FY17 baseline, our environmental footprint weight is 13.02 tCO2e per million$ net revenue (owned production & distribution sites, offices, company vehicles).

Waste
We aim to send zero waste to landfill. Due to the merger with P&G Specialty Beauty in 2016, we experienced a delay in the achievement of this goal and have postponed the deadline to the end of 2018. For FY17, 7% waste from our own factories was sent to landfill and each of our factories have an action plan. Our recycling rate for factories is 63.5%. We aim to improve this rate over the years by implementing new waste management processes and engaging our people on this objective.

Energy
As a pilot, all our sites in Germany, including factories, are now CO2 neutral on electricity with this energy powered by wind and water.

Global environmental footprint
The environmental impact from our own production is limited compared to the impact across our global value chain. We know a large proportion of our environmental impact takes place during the production and transportation of goods we buy as well as consumer use and disposal stages.

We conducted an environmental footprint study of our global value chain as of 30 June 2017 [1] from sourcing raw materials to the end of life impacts of our products. Through an internal engagement process, we collected data from all functions and worked with an external expert agency to define our main environmental hotspots.

For this first global environmental footprint we assessed six main indicators: carbon footprint, water footprint, biodiversity preservation, air quality, water quality and mineral and fossil resource depletion. Our global carbon emission footprint represents 1.6 billion tons of equivalent CO2 which is in line with what could be anticipated given the nature of the Beauty sector.

Consistent with other Beauty industry insights three categories contribute the most to our environmental footprint:
 
  1. Purchased goods (both packaging & raw materials) 
  2. Logistics covering both upstream & downstream transportation
  3. Consumer use of sold products, mainly due to the energy used to heat hot water to use some of our products

In 2018 we intend to further analyze these results to define our main priorities, objectives and associated action plans. We have signed We are Still In demonstrating our support to the Paris Climate Agreement and our intention to align our emissions with the 2 degree trajectory of the science based targets.
 
Products
All of our products are safe and have been developed, manufactured and packaged in compliance with the strict guidelines and regulations set by each country in which they are sold. We comply with all environmental laws and regulations applicable to our business and supply chain.
 
In addition to safety and quality, if there is a reasonable suspicion of environmental harm we aim to take precautionary measures. For example we take the issue of plastic microbeads [2], and the protection of the marine environment very seriously. We have stopped producing any formulas using plastic microbeads and now use either natural or naturally derived and biodegradable materials.

We are in the process of fully understanding the value chains for our key product areas such as fragrance, lip, hair, nail and skincare. We want to better understand our environmental impact at each stage of the product life cycle from the sourcing of raw materials through to product manufacture, distribution, consumer use and disposal.

Sustainable Packaging Initiative for Cosmetics
In May 2018, we joined the Sustainable Packaging Initiative for Cosmetics (SPICE) to work with actors from across the cosmetics industry to collectively shape the future of sustainable packaging.  

Guided by Quantis, a sustainability consulting firm, the initiative aims to develop and publish business-oriented methodologies and data to improve the environmental performance of the entire packaging value chain, with three main objectives:
 
  1. Meeting consumers’ expectations by improving communication and providing more clarity on the environmental performance of products;
  2. Guiding sustainable packaging policy development based on robust and harmonized methodology, recognized by the sector;
  3. Driving packaging innovation based on objective eco-design criteria to progress towards more sustainable solutions.


 
[1] This excludes studios, own retail sites, marketing materials and also total value chain in relation to our ghd and Younique businesses.
[2] We follow the definition provided in the US Federal Microbead-Free Waters Act of 2015: ‘Plastic microbead’ means any solid plastic particle that is less than five millimeters in size and is intended to be used to exfoliate or cleanse the human body or any part thereof.