The Estée Lauder Companies ACN # 008444719 Australian Packaging
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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 2 Estee Lauder Australia Pty Ltd 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. 3 Estee Lauder Australia Pty Ltd 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. 4 Estee Lauder Australia Pty Ltd 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. 5 Estee Lauder Australia Pty Ltd 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 6 Estee Lauder Australia Pty Ltd 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