BEAUTY of our planet

Protecting the natural environment and preserving resources for generations to come is one of the most important responsibilities we have as a business. We are committed to minimizing the environmental impact of our operations and are playing our part to tackle the climate crisis.

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Climate Action

We recognize that urgent action is needed from all sectors to address global climate change.

In 2022, Coty set Science Based Targets initiative (SBTi)-approved short-term emissions reduction targets for our Scopes 1, 2 and 3. Our focus now is on implementing transition plans across three key hotspots: our product impact, our transportation, and the impact of our own operations. We are continuously looking to better our scope 3 reporting and governance, working with our partners across the value chain to do so.

We are committed to participating in initiatives to improve transparency around our business response to climate change, including climate governance and business resilience. We publicly report on our climate strategy and our response to climate change annually through the CDP. This reporting includes physical and transitional climate-related risks and opportunities. These are also acknowledged as key risk factors in our annual financial reporting and are part of our company-wide risk process.

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REDUCING OUR TRANSPORT EMISSIONS

Transport is one of the greatest contributors to our carbon footprint and is therefore a key area of focus within our climate strategy. Using the EcoTransIT tool, we now have monthly monitoring of all downstream transportation we pay for. The tool enables us to monitor key emissions hotspots and identify areas for reduction. For example, we have developed a three-year glide path for reducing air freight emissions by reducing planned and avoiding unplanned urgent air freight. We are also improving vehicle occupancy rates and distribution network design to maximize efficiency in land-based shipments.

OUR OWN OPERATIONS

Reducing our environmental impact starts within our own operations, and in particular, our factories and distribution centers. We focus on managing our energy use, waste generation, water use, and impact on the natural environment. We are committed to transitioning all our sites to renewable electricity and reducing our energy consumption. Our factories and distribution centers work to increase their recycling rates and to send zero waste to landfill. We are also working to reduce our water usage and to better manage our impact on nature.

ENERGY

Managing our energy consumption is a critical component of our climate strategy. Our energy strategy is centered around reducing energy consumption, transitioning to renewable electricity sources, and exploring opportunities for on-site energy generation. We are a member of RE100, a global initiative of over 300 influential organizations committed to 100% renewable electricity. All our factories and distribution centers have successfully transitioned to renewable electricity and we are continuing to work with our corporate offices and R&D centers on that goal.

Our supply chain function, which includes our HSE and Engineering teams, is responsible for energy management across our factories and distribution centers. Each site has a roadmap in place for reducing electricity and fuel and integrating further renewable energy. These three-year plans are reviewed, and good practices are shared across sites. As we continue our journey, we are focusing efforts on our R&D centers and key corporate offices, applying learnings from our factories and distribution centers where possible.

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ON SITE RENEWABLES

Our efforts to minimize Coty’s operational impact include generating our own green energy across our sites. We have solar arrays across several sites, with further under consideration. Our Senador Canedo factory operates a biomass boiler fueled by wooden pallet waste.

WASTE

It is essential that we effectively and responsibly manage the waste produced by our operations. This means both reducing the waste we generate as well as disposing of waste in a safe and environmentally responsible manner.

Reducing, reusing and recycling the waste from our factories and distribution centers is not only part of our environmental responsibility but it also offers important opportunities for the efficient use of resources. We closely monitor and manage our waste and are committed to achieving our recycling and zero waste to landfill targets.

As part of our overall waste management strategy, hazardous waste management is a key focus. We are committed through our Environmental Policy and Greenhouse Gas Program to dispose of waste appropriately, in particular hazardous waste, in accordance with local legislations.

NATURE

Coty relies on the natural world to provide many essential ingredients for our products, and so we work to reduce our impact on nature.

Across Coty's global operations, and particularly within our factories, water consumption is an important area of focus. We monitor and manage our water consumption through our Environmental Management System and are committed to reducing consumption in daily operations. Actions like on-site water purification, equipment upgrades and internal engagement with our associates reduce our water consumption and help use water more efficiently.

We are also working to better manage our impact on biodiversity. Our biggest impact on nature comes from the purchase of goods, particularly raw materials, such as ethanol, as well as paper and wood-based products for our packaging. That’s why we are committed to achieving our target on FSC or PEFC certified folding box boards.

As we investigate new ingredients and raw materials, we aim to reduce their impacts on biodiversity. We are using biotechnology to reduce the impact of our sourcing on nature, for example in the creation of some of the active ingredients for our skin products. We are also integrating carbon-captured alcohol into our fragrance portfolio. This ingredient provides a strong water and biodiversity benefit compared to traditional alcohol.