Beauty Of Our Product

BEAUTY OF OUR PRODUCT

Our products have an important role to play in building a sustainable future. To respond to evolving social and environmental challenges, we intend to keep sustainability at the heart of product innovation.

PRODUCT IMPACT

TARGETS

As of 2020, include sustainability criteria in the conception of all new products

As of 2020, share progress on our High Profile Ingredient management process annually

100% of the packaging for any new product packaging will be recyclable, reusable or compostable, or include recycled material by 2025

In 2019, we developed our internal Beauty That Lasts Index, a qualitative tool to integrate social and environmental criteria into the packaging and formula development process for new products. In 2020, we piloted the Index in the development of our CK EVERYONE fragrance and have embedded learnings from the pilot to simplify the tool. All our R&D teams have now been trained in using the Index. The Index is now fully deployed across the categories and will be applied to all new initiatives from 2021. You can find out more about the Index here.

PACKAGING

Our packaging ambitions are integrated into the Beauty That Lasts Index and are based on four pillars: Reduce, Recycled, Reuse and Recyclable. To support the roll out of these pillars, we have created training materials and guidelines to upskill our internal teams on eco-design. We also work in partnership with other organizations facing similar packaging challenges.

Since 2018, we have been a member of the Sustainable Packaging Initiative for Cosmetics (SPICE): an initiative that brings together the world’s cosmetics organizations to move the whole industry towards more sustainable packaging. We are also a member of the Ellen MacArthur Foundation. To find out more about our partnerships, see here.

CLEAN BEAUTY

For Coty, clean beauty is about meeting consumers’ desire for minimalist formulas with fewer irritants and more transparency.

Within our Beauty That Lasts Index, “Good for me” is a key assessment criterion ensuring our clean beauty principles are integrated into new product development. Our clean beauty efforts are also underpinned by the tracking and monitoring of High Profile Ingredients (HPIs), or ingredient groups.

SPOTLIGHT ON: ACCELERATING THE MOVEMENT IN CLEAN BEAUTY

In January, Calvin Klein EVERYONE was the first fragrance to achieve a Material Health Certificate at the Silver level from the Cradle to Cradle Products Innovation Institute. New clean launches also include Sally Hansen’s plant-based nail polish collection, Good. Kind. Pure., an ingredient-conscious, vegan formula and COVERGIRL’s new Clean Fresh Collection, also created with a simpler, vegan formulation. Reformulations are also part of our strategy. Building on the success of Nature in a Jar collection, philosophy’s iconic purity facial cleanser has now been reformulated. This approach is being rolled out across the philosophy portfolio with a target for all products to be clean by 2022. You can find out more here.

SUPPLY CHAIN RESPONSIBILTY

TARGETS:

We aim to improve responsible sourcing and transparency in our supply chains by:

Purchasing 100% mass balance-certified palm oil for our production sites by 2022

Ensuring 100% of Indian Mica is responsibly sourced by 2022

Our Code of Conduct for Business Partners sets out our expectations for suppliers. In 2020, we strengthened the Code to enhance certain standards, and 187✓ suppliers have signed the new Code as of June 2020.

Suppliers at higher risk of non-compliance are engaged using the Suppliers’ Ethical Data Exchange (SEDEX), an online tool that allows the scoring and verification of suppliers’ self-assessment and third-party audits. In 2020, we have assessed 98✓ suppliers covering 149 sites (including some indirect suppliers) through the SEDEX self-assessment questionnaire or via an audit if necessary. In 2021 and beyond, we will expand training on the SEDEX platform to ensure it is part of onboarding new suppliers.

We continue to use the EcoVadis 360o ESG assessments for suppliers within indirect spend categories. In total, Coty has 198 suppliers assessed in EcoVadis, with 83✓ assessed in 2020 receiving an average score of 56.9 out of 100, more than 14 points above the average EcoVadis score.

We work collaboratively with organizations including AIM-Progress: a network of businesses dedicated to sustainable supply chains. We are also a co-founder of the Responsible Beauty Initiative (RBI), which leverages the EcoVadis network to store and manage the corporate social responsibility details of mutual RBI suppliers.

You can find out more about our supplier compliance process here.

We have taken steps to improve responsible sourcing and transparency in our supply chains. In 2020, 30% of the palm oil derivatives we purchased for our factories was RSPO Mass Balance certified, which is in line with our annual objectives. We recognize we need to go further and faster and are exploring ways to strengthen our responsible sourcing practices. As part of this process, in 2021 we will publish the full list of our direct palm oil derivative suppliers.

In 2020, 30% of the palm oil derivatives we purchased for our factories was RSPO Mass Balance certified, which is in line with our annual objectives. We recognize we need to go further and faster, and are exploring ways to strengthen our responsible sourcing practices.

Coty became a founding member of the Responsible Mica Initiative (RMI) in 2017. The RMI is a multi-stakeholder action group aiming to establish a 100% sustainable Indian mica supply chain by the end of 2022. We have traced 97% of our mica to country level and 53% of our Indian mica sources to mine level. Currently, 95% of our purchased mica comes from suppliers who themselves are members of the RMI.

✓ Limited assurance provided by KPMG

Beauty Of Our Product

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