The recently released report provides critical updates on the company’s progress in climate action, waste reduction, and ingredient transparency. With a continued focus on responsible sourcing, inclusion, and operational efficiency, the report outlines achievements that underscore ELC’s role in setting benchmarks within the cosmetics industry.
In the report, Executive Chairman William P. Lauder emphasized that ELC’s guiding principles have continued to inspire meaningful change in both product development and environmental responsibility, stating, “As a brand-led, prestige beauty company, creativity and innovation are at the core of our identity.” Lauder highlighted the brand’s commitment to not only meet but exceed consumer expectations in an increasingly sustainability-focused market.
Key progress highlights
Climate goals and water management
The report shares ELC’s progress towards ambitious climate goals, such as a 37% reduction in Scope 1 and 2 emissions from 2018 levels, marking a significant step toward its target of a 50% reduction by 2030. Notably, ELC has maintained carbon neutrality across its Scope 1 and Scope 2 emissions and achieved 100% renewable electricity for direct operations globally, which reflects ELC’s broader climate commitments aimed at minimizing operational environmental impact.
ELC also met its 20% water withdrawal reduction goal ahead of schedule at its manufacturing sites in high-stress regions, achieving a 23% reduction from a 2019 baseline. Fabrizio Freda, President and CEO, noted in the report that “our environmental and social efforts are integral to this journey—fostering innovation, value creation, operational efficiency, and engagement.”
Packaging and waste management
On the packaging front, ELC reported that 71% of its packaging by weight is recyclable, refillable, reusable, or made from recycled materials. ELC’s packaging guidelines focus on recyclability and the reduction of virgin plastics, with an aim to integrate post-consumer recycled content to 25% by 2025.
Currently, it has reached 20% post-consumer recycled material in packaging. As global regulations increasingly demand sustainable practices, these advancements position ELC as an industry leader in waste reduction and material innovation.
In addition, the company diverted 99.8% of industrial waste from landfills across its manufacturing and distribution facilities. Although it fell slightly short of its zero waste target due to unforeseen challenges with third-party waste processors, this statistic underscores ELC’s dedication to minimizing environmental impact throughout its supply chain.
Social commitments and diversity initiatives
ELC continues to focus on social impact with a series of initiatives aimed at employee safety, inclusion, and equity. For example, the company's report confirmed it achieved global pay equity across all employee sectors in 2023, and 49.7% of senior leadership roles are now held by women.
ELC is also committed to engaging diverse talent pipelines through partnerships with educational organizations such as Spelman College, supporting underrepresented groups in STEM.
Nancy Mahon, Chief Sustainability Officer, noted in the report that, “our social impact initiatives demonstrate our dedication to the communities where we live, work, and source. As we look ahead, I am excited about the opportunities to build on this momentum.”
ELC’s sustainability initiatives emphasize how cosmetics companies can leverage responsible sourcing, reduce emissions, and minimize waste in response to rising consumer demand for transparency and environmental accountability. For suppliers, these developments signal a growing preference for partners who can align with stringent environmental standards.
