The Estée Lauder Companies Australia ACN # 008444719 Australian Packaging Covenant

5-Year Action Plan

January 2011- December 2015 Estee Lauder Australia Pty Ltd

TABLE OF CONTENTS

1. Executive Summary...... 3 2. Company Details ...... 3 3. Five-Year Action Plan Activities and Goals ...... 5 4. ELC Contact for The Australian Packaging Covenant ...... 16

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1. Executive Summary

This Action Plan is submitted by the Estée Lauder Companies (ELC) to the Australian Packaging Covenant Secretariat for the period January 2011 through December 2016. ELC continues to demonstrate our commitment to minimize the impact of our products and operations on the environment. Specific actions included in the Plan align with the Covenant’s three performance goals- Design, Recycling, and Product Stewardship, and are organized in Section 3: Activities and Goals according to the Covenant’s Key Performance Indicators. ELC will report annually on the progress in implementing these specific actions.

Additionally, we understand that an essential component of the new Covenant Action Plan is the signatory’s review of existing and new packaging. ELC incorporates stages of review during the design and procurement of new products and packaging. These stages guide Designers/developers and Procurement to follow the evolving international packaging/product requirements, in addition to the internal quality, safety and sustainability dictates of the company. There are also audits of developers for specification accuracy; and audits of suppliers for responsible manufacturer practices and verification of claims, e.g. recycled content and other sustainability metrics. The Corporate Sustainable Package Development Guidelines target sustainability standards and goals for specific component categories across all brands. As part of their supply chain strategy, corporate Purchasing also takes into consideration supplier’s ability to contribute to and meet these guidelines.

Regarding existing packaging, the corporate responsibility reports track progress of environmental sustainability metrics by Brand, Material and Supplier. The Value Analysis team, during their cost analysis, looks at the current packaging systems to explore design, quality, and sustainable packaging improvement opportunities, e.g. further weight reduction, etc.

During the course of the Five-year Australian Plan, ELC will examine our current packaging review processes against the Sustainable Packaging Guidelines, suggested by the Australian Packaging Covenant, and report on the goals and timetable for enhancing this process.

This Action Plan has the full support of Estée Lauder Companies Australia Pty. Ltd.

Signature:

Name: Terry Little

Position: Managing Director

2. Company Details

Profile: The Estée Lauder Companies is one of the world’s leading manufacturers and marketers of quality skin care, makeup, fragrances, and hair care products. The Company’s products are sold in over 150 countries and territories. The Company sells its products principally through limited distribution channels to compliment the images associated with its brands. The channels consist primarily of upscale department stores, specialty retailers, upscale perfumeries and pharmacies, professional hair salons, freestanding company stores, spas, televised home shopping, stores on cruise ships, in-flight, duty-free shops in airports and cities, and the Internet.

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Brand names: Estée Lauder, Aramis, Clinique, Prescriptives, Lab Series Skincare for Men, Origins, Tommy Hilfiger Toiletries, M·A·C, Kiton, La Mer, Bobbi Brown, Donna Karan Cosmetics, Aveda, Jo Malone, Bumble and bumble, Michael Kors Beauty, Darphin, American Beauty, Flirt!, Good skin™ Labs, Grassroots™ Research Labs, Sean John Fragrances, Missoni Profumi, Daisy Fuentes, Tom Ford Beauty, Mustang, Coach, Ojon and Smashbox.

Research and Development: Melville, New York; Blaine, Minnesota; Oevel, Belgium; Tokyo, Japan; Ontario, Canada; Shanghai, China; Colombes, France; Petersfield, U.K.

Manufacturing: United States, Belgium, Switzerland, the United Kingdom, Canada, and France

Ownership: A majority of stock is owned by members of the Lauder family. The Company has been public since November 1995.

Employees: Approximately 31,000 full-time employees worldwide.

Australian Sales: FY 2010 turnover is approximately AUD 175 million

Brands marketed in Australia: Estée Lauder, Aramis, Aveda, Clinique, Lab Series Skincare for Men, Tommy Hilfiger Toiletries, M·A·C, Kiton, La Mer, Bobbi Brown, Donna Karan Cosmetics, Jo Malone, Michael Kors Beauty, American Beauty, Flirt!, good skin™, Grassroots™, Sean John Fragrances, Missoni Profumi, Tom Ford Beauty.

Origins, Prescriptives, Bumble and bumble, Darphin and Smashbox are sold in Australia but not through Estée Lauder Australia Pty Ltd.

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3. Five-Year Action Plan Activities and Goals

Packaging materials and formats used by ELC

The extensive ELC packaging material list can be grouped into the following basic material categories: paper, plastic, glass, aluminum, steel, other metals, natural materials (rubber, wood, textiles, etc.), other materials, bio-based materials, and composites.

The component list includes:

Flexible Packaging: Folding cartons; carton liners; set up boxes; thermoform platforms; clamshells and set box dust covers; carriers; shrink and bundle wrap; shippers; labels; tubes; bags; promotional accessories; applicators; inserts and product enclosures

Rigid Packaging : metal components; metal shell caps; cast metal parts; compacts; lipstick cases; mascara cases; pumps; caps; bottles; jars; jar discs; glass components; pencils; cans and aerosols; packettes and other miscellaneous parts.

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Goal 1: Design – optimize packaging and achieve resource efficiency and reduce environmental impact without compromising product quality and safety

Covenant ELC Actions Baseline Data Responsibility Target or Timeline/ Performance performance goal Milestones KPIs (MM/YY) KPI 1 – Develop better web access to ELC is on track on the Packaging Data will be more 12/13 Implementing environmental packaging tools migration of all environmental Development/ Global robust each year as SPG for design and information for all employees packaging tools to an internal Supplier Relations ELC populates the or procurement to use. ELC is redesigning the web-based system with (GSR) new fields and of all new interface to education tools improved and tailored search implements SAP packaging available through the corporate capabilities for all ELC globally over the intranet. This will enable staff to departments. next 3 years. readily access regulations, labeling guidance, sustainable materials lists etc. specific to component and product types.

ELC will examine their current Current tools include: Packaging To demonstrate TBD after packaging review processes developer training and Development/ Global alignment with the initial review of against the Australian Sustainable guidance tools; audits of Supplier Relations Australian SPG process Packaging Guidelines developer and supplier (GSR) specifications; sustainability standards and goals for specific component categories across all brands; sustainability metrics; Value Analysis team Continue in-house training Training programs completed in Packaging ELC will schedule in- Annual programs for ELC designers and 2010 Development/ Global house training marketing professionals regarding Supplier Relations programs each year environmental compliance and (GSR) regulatory requirements. ELC, as a member of the The COMPASS tool has been Packaging Assess the Ongoing Sustainable Packaging Coalition launched and ELC is continuing Development/ Global environmental (SPC), has been involved in the the in-house education Supplier Relations impacts of our redevelopment of the Merge program (GSR) products during the packaging design tool (now called design phase based COMPASS (Comparative on sustainability

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Covenant ELC Actions Baseline Data Responsibility Target or Timeline/ Performance performance goal Milestones KPIs (MM/YY) Packaging Assessment). This metrics. tool allows ELC to assess the environmental impacts of our products during the design phase based on sustainability metrics. The NOG (Natural, Organic, In September 2010 there was a NOG Innovation Team One NOG innovation Annual Green) team will develop second NOG innovation fair. fair per year products and packaging that will become available to all brands in one or all of the NOG areas. For folding cartons, and set-up N/A Packaging Alternatives to be Ongoing boxes: Investigate alternative to Development/ GSR reviewed upon Mylar silver when called for in design direction. design (foil, metallic inks) All thermoform platforms, PET is currently the default Packaging PCR content to be Ongoing clamshells, and set box dust material for thermoform Development/ GSR determined based on covers to be standardized to PET. platforms with approximately ability to use without Goal is to maximize the PCR 30% of platforms being made impacting content in the platforms. from Styrene because of small performance criteria. colour runs. Cello wrap to replace carriers, This is a program being Manufacturing Use based on Ongoing except on Travel Retail wrap x 1 managed by Manufacturing Engineering performance criteria. and when carriers are need for Engineering as a cost and protection. environmental savings. Corporate policy to be set on Currently PP/PE film is used for Packaging Target evaluation by 12/12 PP/PE film versus compostable bundle wrap and PLA may be Development/ 2012. PLA film based on end-of-life more of an end of life issue Manufacturing considerations. since PP/PE film is recycled. Engineering For tubes, no polyfoils unless N/A. This is currently a goal. Packaging Need corporate 12/12 required for compatibility reasons. Development/ GSR policy to be established Tubes: Develop snap on N/A. This is a goal not yet Packaging Development 12/14 unscrewing caps for recycling. developed Development/ GSR needed Elimination of PVC bags. Currently all PVC bags have Packaging Alternate to PVC to 12/14 been switched to low-phthalate. Development/ GSR be developed

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Covenant ELC Actions Baseline Data Responsibility Target or Timeline/ Performance performance goal Milestones KPIs (MM/YY) Makeup compacts to be designed Implemented for three brands Packaging Expand use based Ongoing as refills. and for Japan. Development/ Design on criteria for performance and market needs. Lipstick cases to be designed as Implemented for one brand. Packaging Expand this Ongoing refills. Development/ Design opportunity based on criteria for performance and market needs. For pumps, use all polyolefin Several suppliers now offer Packaging Use and Ongoing materials, if possible, for pumps made of 100% plastic Development/ GSR development of all recycling. resin. These may be easier to plastic pumps based recycle. on performance criteria. Plastic jars to have removable This concept is under Packaging Will be decided 12/13 inner cups for recycling. investigation because it may be Development/ based on EPR just as easy to separate current Engineering experience. two piece jars by the recycler. Jars to be made from PET or PP. This is a default goal for ease Packaging Continued review Ongoing of recycling. Development/ GSR Each brand will look at their Currently set up boxes and gift Packaging The goal is to Ongoing components to see where it is boxes are sized for Development/ GSR optimize our possible to reduce the size of presentation to the consumer. secondary their promotional cartons. packaging to meet performance criteria.

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Goal 2: Recycling – efficient collection and recycling of packaging

Covenant ELC Actions Baseline Data Responsibility Target or Timeline/ Performance performance Milestones KPIs goal (MM/YY) KPI 3 – On-site Post Consumer plastic – PET and PP All collection areas Sustainability committee All recyclable In place recovery systems Strategically placed bins in all canteen / covered material recovered since 2005 for recycling used kitchen areas for collection. Bins are clearly packaging marked for use by staff, and catering suppliers.

Post Consumer - Glass All collection areas Sustainability committee All recyclable In place Strategically placed bins in all canteen / covered material recovered since 2005 kitchen areas for collection. Bins are clearly marked for use by staff, and catering suppliers.

Post Consumer – Aluminium All collection areas Sustainability committee All recyclable In place Strategically placed bins in all canteen / covered material recovered since 2005 kitchen areas for collection. Bins are clearly marked for use by staff, and catering suppliers.

Post Consumer – Steel All collection areas Sustainability committee All recyclable In place Strategically placed bins in all canteen / covered material recovered since 2005 kitchen areas for collection. Bins are clearly marked for use by staff and catering suppliers.

Post Consumer / Office and Operations – All collection areas Sustainability committee All recyclable In place Paper and Cardboard – covered material recovered since 2005 Strategically placed wheelie bins in office areas including specially designated recycling areas to collect over 475 tons of material per year all, non reusable, shipping, consumer packaging and post consumer packaging.

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Covenant ELC Actions Baseline Data Responsibility Target or Timeline/ Performance performance Milestones KPIs goal (MM/YY) Post Use – shipping and packaging All company controlled Sustainability Committee / All sites In place materials are picked up by authorised paper sites Brands and Management continuing, since 2005 and cardboard companies. reduced waste to landfill Post Use Timber / Pallets from operations All collection areas Sustainability committee All recyclable In place All non usable pallets are sent for re-cycling covered material recovered since 2005 as opposed to land fill.

Post / unused packaging materials are all All stock / material Warehouse and brand All sites, nationally 12/11 sent for recycling includes product disposed of from management packaging, leftover / waste promotional warehouse material and anything else made of recyclable materials Post Consumer / Office Use Electronic All collection areas Sustainability committee All recyclable In place Equipment covered material recovered since 2005 System for recycling mobile phones, and other electronic devices in place to help charity organisations, Batteries are collected separately as well as all used computer hardware is collected centrally and sent to recycling centres.

Post used office paper and materials to All recycled since 2000 Sustainability / all staff Minimal to landfill In place - recycling or before monitor For labels – used in production - develop We have one supplier Packaging Development/ To be part of the 12/12 take back programs with suppliers for actively running with this GSR GSR label cores, backing tape, etc. program. sourcing strategy. After three years of research and Currently over 200 tons Packaging Development/ Move this program 12/12 development, Aveda has launched its US of caps have been GSR to a third party Cap collection program. All polypropylene collected to date. recycler and bottle caps are accepted for return through expand. stores and schools. Aveda will use this product stewardship program as a source of polypropylene plastic for its caps. The program will help to reduce litter and its

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Covenant ELC Actions Baseline Data Responsibility Target or Timeline/ Performance performance Milestones KPIs goal (MM/YY) impact on wildlife and the environment as well as keep the closures out of the landfills.

The Origins brand has developed a 7 tons collected Packaging Collect 10% of 12/15 program to take back their packaging from Development/Marketing / materials sold. consumers at their stores in the USA. The EL EaS materials will be recovered through recycling or waste to energy. Working to identify a program to motivate the consumer to return their packaging. The MAC brand program has taken back NA. In development Packaging Development/ Start development 12/12 lipsticks and compacts, in the US, for 8 EL EaS years now. Next steps to develop a program to manufacture new compacts using the collected material.

Post Use Printer Laser printer and toner All collection areas Sustainability committee All recyclable In place cartridges covered material recovered since 2005 Bin in place to collect and re-cycle / re-use toner cartridges based to minimise environmental impact of our operations

KPI 4 – Policy to For carton liners, maximize PCR content. Currently have two Packaging Development/ Goal of a 12/12 buy products brands using recycled GSR minimum of 30% made from content liners. and extend to recycled other brands. packaging

For labels, maximize recycled content. N/A/. Not yet Packaging Development/ Develop as 12/12 implemented. GSR sources become available. For labels, use renewable feed stock All paper labels are from Packaging Development/ Develop film 12/13 (paper/bio-based film) renewable stock. Film GSR labels from

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Covenant ELC Actions Baseline Data Responsibility Target or Timeline/ Performance performance Milestones KPIs goal (MM/YY) labels are not renewable stock.

For tubes, maximize PCR content Most tubes currently Packaging Development/ Goal of a 12/12 virgin plastic GSR minimum of 35% where performance criteria are met. For promotional accessories, maximize N/A. Not yet Packaging Development/ Begin 12/12 renewable or recycled material content. implemented Design development with this goal For applicators (brushes & sponges), N/A. Not yet Packaging Development/ Begin 12/12 maximize renewable or recycled material implemented GSR development with content. this goal For inserts and product enclosures, N/A. To be implemented Packaging Development/ Target is 100% 12/12 maximize PCR. as a corporate standard GSR PCR

For metal components , maximize recycled Currently we have a Packaging Development/ Insure that all Ongoing content standard 80% PCR in all GSR metal part matte and satin recycled content is anodized aluminium captured. parts. Tin plate parts are at 40%. For bright anodized metal caps (also for N/A. This standard Packaging Development/ Target is 20-30% 12/12 lipstick cases) maximize recycled content. needs to be confirmed GSR by our suppliers. Maximize recycled content of PP inner caps N/A. Not yet Packaging Development/ Begin 12/12 for metal shell caps. implemented GSR development Recapture of metal from metal shell caps, N/A. Not yet Packaging Development/ Begin 12/13 plated parts, as well as precious metal implemented GSR development with plating from metal parts. material reclaimers and suppliers Maximize recycled content of metal N/A. Not yet Packaging Development/ Begin this 12/13 compacts. implemented GSR development

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Covenant ELC Actions Baseline Data Responsibility Target or Timeline/ Performance performance Milestones KPIs goal (MM/YY)

Maximize recycled content of plastic parts N/A. Goal not yet Packaging Development/ Development to 12/14 of lipstick cases. implemented Design be started Maximize recycled or renewable content in N/A. Goal not yet Packaging Development/ Start development 12/14 pumps. implemented GSR Maximize recycled or renewable content in N/A. Not yet Packaging Development/ Start development 12/12 plastic caps, inner caps or metalized caps. implemented GSR Maximize recycled content in plastic bottles. Aveda and some Packaging Development/ Moving Bumble & 12/12 Origins PET bottles are GSR bumble and Ojon 100% PCR content. to PCR in 2012 Aveda is at 80 % for HDPE. Aveda will be at 100% in 2011. Maximize recycled or renewable content in Aveda and Origins jars Packaging Development/ Extend this goal to 12/12 plastic jars are at 100% PCR. GSR other brands Promotional jar discs to be thermoformed in N/A. Goal not yet Packaging Development/ Target 100% PCR 12/13 PCR PET implemented GSR Maximize recycled or renewable material N/A. Goal not yet Packaging Development/ Start development 12/13 content for cans and aerosols implemented GSR

Standardizing the post-consumer recycled Shippers are at 80% Packaging Development/ Shippers to 90% 12/12 content of shippers and carriers. PCR content; carriers GSR PCR and 10% are at 100% recycled PIR. Depending content of which 80% on technology post-consumer content.

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Goal 3: Product stewardship – a demonstrated commitment to product stewardship by the supply chain and other signatories

Covenant ELC Actions Baseline Data Responsibility Target or Timeline/ Performance performance goal Milestones KPIs (MM/YY) KPI 6 – Formal Cotton for bags to be organic Standard for Aveda Packaging Implement in other 12/14 policies and Development/ GSR brands procedures in Investigate steel versus Not yet started Packaging Development to be 12/13 working with aluminium cans Development/ GSR started others to GSR purchasing will continue Currently 37 component part Packaging The goal is to 12/12 improve design, asking their supplier base (for suppliers to ELC are using Development/ GSR increase the number procurement and folding cartons, carton liners,) to renewable energy. The energy of packaging recovery or join ELC in the use of renewable profile of each of ELC suppliers suppliers who use packaging. energy. manufacturing facilities is now renewable energy in captured in the ELC PDS their production database. facilities. Target: 25%. Aveda and Origins brands to Complete for Aveda and Packaging Goal is 100% of 12/12 purchase folding cartons only Origins Development/ GSR brand folding cartons from manufacturers using renewable energy ELC is now using renewable In 2009 ELC completed its first EL EaS ELC is developing a 12/12 energy in all our North American GHG inventory and completes GHG reduction goal. and EU manufacturing facilities the inventory each year. ELC will look into providing web ELC is developing an on-line EL EaS / Global Development of 12/13 site communication for recycling platform for environmental Communications communication and environmental information. information and will include platform communications on recycling Track supplier progress on In 2010 ELC initiated the GSR First supplier to be 4/11 sustainable packaging for supplier recognition project. awarded Corporate purposes of recognition and Responsibility Award potentially for award of business. this year GSR (global supplier relations) is Completed 3 rounds of audits GSR Will extend to 2013 setting up an audit timeline and in the Asia Pacific region Europe and The process for all ELC product Americas component suppliers on environmental and social

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Covenant ELC Actions Baseline Data Responsibility Target or Timeline/ Performance performance goal Milestones KPIs (MM/YY) compliance. ELC - Australia has established a Systems in place for recycling ELC – Australia / Continued education On going Sustainability Committee as many materials as possible Sustainability and involvement of as noted above; community Committee all staff work at national park to re- establish a wildlife corridor KPI 7 – Increase organisation’s Current levels of resources ELC – Australia / Continued education On going Signatories awareness on sustainable issues used, in all areas paper / printer Sustainability and involvement of demonstrating and educate on how each cartridges / consumables etc. Committee all staff other product employee can make a difference. stewardship Reduced use / re-use and anti outcomes.. litter programs Use labelling as a tool to educate “Please Recycle” Packaging Implement for other 12/14 the consumer on recycling or communications on folding Development / GSR brands reuse of packaging. cartons and inserts. Aveda and Origins using now “Please Recycle” Packaging Implement for other 12/14 communications on HDPE & Development / GSR brands PET bottles and jars. Aveda using now “Please Recycle” Packaging Begin program for all 12/14 communications on Glass Development / GSR brands bottles and jars. ELC is engaged in the Packaging .A pilot program is 12/11 development of an end-of- life Development / GSR scheduled to launch label through their membership in 2011. in the SPC ELC – Australia recommends Distribution Ongoing / On going re-use and or re-cycle on all maintained shipping materials used in operations

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4. ELC Contact for - The Australian Packaging Covenant.

The ELC contact for information regarding this Australian Packaging Covenant Action Plan and matters relating to the environmental aspects of ELC products and services is:

Primary Contact

Mr John Koppl Regulatory Affairs Manager Estee Lauder Companies Australia Pty. Ltd. ACN # 008 444 719 ABN# 63 008 444 719 LB 1050 ROSEBERY NSW 1445 Email: jkoppl@Estée.com.au

Corporate Sponsor - Managing Director

Mr. Terry Little Managing Director Estée Lauder Companies Australia Pty. Ltd. ACN # 008 444 719 ABN# 63 008 444 719 LB 1050 ROSEBERY NSW 1445 Email: tlittle@Estée.com.au

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