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BUILDING FOR THE FUTURE OUR VALUES PERFORMANCE 2014/2015 & OUR NEW COMMITMENT CONTENTS “I JUST WANT 4 INTRODUCTION OUR VALUES THE BODY SHOP TO 6 SUPPORT COMMUNITY FAIR TRADE 10 ACTIVATE SELF ESTEEM 14 DEFEND HUMAN RIGHTS BE THE BEST, MOST 18 AGAINST ANIMAL TESTING 22 PROTECT THE PLANET BREATHLESSLY 28 THE BODY SHOP OUR NEW COMMITMENT EXCITING BRAND” 32 OUR EVOLUTION TOWARDS OUR ENRICH NOT EXPLOIT™ COMMITMENT DAME 36 HOW WE CAME UP WITH ENRICH NOT EXPLOIT™ (1942—2007) 40 CORE ELEMENTS OF THE COMMITMENT 44 THE COMMITMENT: OUR TARGETS 52 THE COMMITMENT: MAKING AND MEASURING PROGRESS 54 ENRICH NOT EXPLOIT™. IT’S IN OUR HANDS 56 THE COMMITMENT IN ACTION: IT’S IN OUR HANDS

BUILDING FOR THE FUTURE 2014—15 3 INTRODUCTION

challenges are ahead of us “MY HOPE FOR THE FUTURE and it is our responsibility to ensure our business is fit for OF THE BODY SHOP IS a positive and sustainable future. Building on the best PRIMARILY VESTED IN of our track record, our global Enrich Not Exploit™ THOSE PEOPLE WHO WILL BE Commitment – and the knowledge, systems and THE CUSTODIANS OF OUR passion that underpin it – has been designed so The Body Shop continues to be a trailblazer, CULTURE AND OUR VALUES” fighting for a better world.

DAME ANITA RODDICK This report is a celebration of our incredible achievements In establishing The Body Shop and the way we run our over the past 40 years. It as an ethical beauty business, business. This is as true in outlines key milestones in Anita Roddick was ahead of her 2016, our 40th anniversary, The Body Shop journey, time. Now, it is up to all as it was when Anita Roddick including our performance members of The Body Shop opened her first shop in 1976. against our five core values in family to pioneer a new 2014–2015 and our roadmap kind of globally sustainable Our values influence for our new strategy. From business for a new world. everything we do, from 2016, as outlined on pages 32 product development to our to 57, we will be driven by supply chain and dealing our new Enrich Not Exploit™ OUR VALUES with customers. This has Commitment, rather than the The Body Shop is a global helped us to be ethical values which have been our ethical beauty business business pioneers and a reference point in the past. with five core values: powerful force for change. I would like to thank colleagues • SUPPORT COMMUNITY I am pleased to report positive across our stores and offices, FAIR TRADE performance against our values our partners, suppliers and • ACTIVATE SELF ESTEEM in 2014–2015. This ranges customers for their role in • DEFEND HUMAN RIGHTS from more environmentally furthering our values – by sustainable product joining our campaigns, • AGAINST ANIMAL TESTING formulations and packaging investing in sustainable • PROTECT THE PLANET to increasing our Community products and sharing our Fair Trade spend. We also passion for positive change. I provided significant support look forward to us all working From 2016, we are evolving our for marginalised communities, together to fulfill our aim and values-driven approach to work particularly through access to deliver our new Commitment. towards our new Enrich Not education and clean water. Exploit™ global commitment, focussing on three pillars: But our most significant Enrich our People, Enrich our values-driven investment and Products, Enrich our Planet. achievement since 2013 has been Christopher Davis Values have always been developing The Body Shop’s new International Director of fundamental to The Body Shop global sustainability strategy for Corporate Responsibility the future. The world’s biggest and Campaigns

4 BUILDING FOR THE FUTURE 2014—15 Community Fair Trade is The Body Shop’s “I WANTED TO TRY AND FIND own independently verified fair trade PRODUCTS MADE FROM NATURAL programme, created to help marginalised INGREDIENTS. AT THAT TIME, NO communities improve their lives and alleviate poverty. We remain committed to trading ONE WAS TALKING MUCH ABOUT fairly with our suppliers, large and small. THE ADVANTAGES OR POTENTIAL OF NATURAL PRODUCTS BUT I KNEW KEY ACHIEVEMENTS THAT FOR CENTURIES WOMEN HAD BEEN USING ORGANIC POTIONS 1987 TO CARE FOR THEIR SKIN WITH Our pioneering Community Fair Trade programme started when The Body Shop EXTRAORDINARY SUCCESS.” started sourcing ‘footsie’ massage rollers DAME ANITA RODDICK from an education and employment charity in India, which became a best-selling line 1989 We bought Nepalese sustainable paper gifts made from plants clogging local waterways, leading to new employment for people and seed funding for community projects 1993 We sourced our first Community Fair SUPPORT Trade ingredient – sesame seed oil 1994 Anita discovered shea butter from COMMUNITY Tamale, northern Ghana 1999 We sourced organic cotton Moisturising FAIR TRADE Gloves and Socks from Mauritius 2007 We were awarded ‘The Big Tick’ Business In The Community Supply Chain Award 2008 We were the first to use fair trade organic alcohol in 2009 The Institute for Marketecology (IMO) certified our Community Fair Trade programme 2011 We helped establish the Global Shea Alliance, bringing industry members together to improve benefits for producers and increase the number of women involved in the trade 2013 BITC named The Body Shop International Responsible Business 2013, based on our Community Fair Trade programme

BUILDING FOR THE FUTURE 2014—15 7 ACTIVITIES AND SUPPORTING WOMEN ACHIEVEMENTS 2014—2015­ IN NICARAGUA

In Nicaragua, our innovative pricing mechanisms recognise the unpaid contributions of women in sesame oil production, such as fetching COMMUNITY water, feeding workers and caring for children. Our long- FAIR TRADE term Community Fair Trade WE WORKED WITH partner, the Juan Francisco Paz Silva Co-operative, has 2014–2015 used this extra money to set 25,000 up a credit and savings scheme COMMUNITY FAIR that has enabled 70 women TRADE PRODUCERS to set up small businesses. AND FARMERS IN In collaboration with the UK 21 COUNTRIES Economic and Social Research Council, Royal Holloway University and Oxfam, we funded PhD research into REACHING the impact of this approach. OUR 300,000 The study showed that it can GLOBAL PEOPLE lead to participants having WE BOUGHT OVER greater incomes, status, self- PROGRAMMES esteem, access to external 3 MILLION SPENDING services and more support PASSED from men in household tasks. KILOS £21 “OVERALL, IT SEEMS OF COMMUNITY FAIR THAT RECOGNISING THE TRADE INGREDIENTS MILLION UNPAID WORK OF WOMEN CAN HAVE SIGNIFICANT “WITH THIS INITIATIVE, ECONOMIC AND SOCIAL WE ARE BECOMING BENEFITS… IT IS OPENING Community Fair Trade was In 2014 we started sourcing Honduras, Nepal and Ghana, NEW WAYS OF THINKING EMPOWERED. YOU NO a particularly busy area for Community Fair Trade enabling 700 children now – ABOUT HOW GOVERNMENTS, The Body Shop in 2014–2015. organic argan oil from six and many more in future – to LONGER HAVE TO WAIT Moroccan co-operatives. access education. This is the DEVELOPMENT We received a Global Shea This is providing 334 rural result of a Christmas 2013 ORGANISATIONS, FOR THE MAN TO TELL Alliance Award for our women with a regular initiative where we donated AND COMPANIES CAN YOU WHAT TO DO; NOW work over the past five income, giving them greater a specific amount of every MEASURE AND RECOGNISE years to help build a fair social status and financial Christmas gift sold in-store. and sustainable shea butter independence, reducing UNPAID LABOUR, WHICH WE MAKE OUR OWN industry. With other Alliance migration and supporting IS NORMALLY TAKEN DECISIONS AND SHARE members, we have worked local economic development. FOR GRANTED.” to increase the number of RESPONSIBILITIES women involved in shea We finished building five FELICITY BUTLER, production and secure greater schools with our Community ‘VALUING UNPAID WITH OUR PARTNERS.” benefits for shea workers. Fair Trade suppliers in India, LABOUR IN FAIR TRADE ISABEL, MEMBER OF WOMEN’S PRODUCTS’ IN GENDER CO-OPERATIVE, NICARAGUA & DEVELOPMENT 2014, VOL. 22, NO. 3, 533–547

8 BUILDING FOR THE FUTURE 2014—15 The Body Shop wants to run a “WE WORK TO PROMOTE SELF-ESTEEM AND business that makes people feel ENCOURAGE THE CELEBRATION OF THE UNIQUE good about themselves. We are QUALITIES THAT MAKE EACH OF US WHAT WE an ethical beauty brand that values who people are and what ARE. WE HAVE A GREATER RESPONSIBILITY they do, not just how they look. TO OUR CUSTOMERS THAN SIMPLY TENDING TO THEIR LOOKS. WE TRY TO CELEBRATE THE KEY ACHIEVEMENTS WHOLE PERSON.”

1995 DAME ANITA RODDICK The Body Shop UK stores carried What Women Want cards, receiving 14,000 responses in three months. These were published in a report and book and influenced wider campaigning on women’s issues

1998 We developed our self-esteem campaign, featuring the body- positive Ruby doll, to challenge stereotypes and spark debate 2013 Self-esteem related to ACTIVATE disability became one of three funding priorities for The Body Shop Foundation, SELF-ESTEEM our company charity ACTIVITIES AND ACHIEVEMENTS 2014–2015

The Body Shop has continued to support and build self- esteem, particularly among women, through our human rights campaigns and income- generating projects linked to our Community Fair Trade programme as well as in- store and in the media.

BUILDING FOR THE FUTURE 2014—15 11 LOCAL ACTION GLOBAL ACTION

In 2014–2015 we also worked to boost self- The media continues to prey on the insecurities esteem at a local level. In partnership with of women. Across the world, we are doing what St John’s College, Brighton, our International we can to redress this balance. Human Resources team based in the UK arranged work placements for five young people Every poster we display in-store and every with special educational needs. This helped to image on our website is produced build the confidence and skills of people who to the following guidelines: are often excluded from mainstream society. • WE DO NOT ALTER THE SIZE OR BODY SHAPE OF OUR MODELS “YOU COULD FEEL HOW EXCITED THE • WE DO NOT USE UNNATURALLY THIN MODELS LEARNERS WERE ABOUT ACTUALLY • WE DO MAKE SMALL ADJUSTMENTS TO COLOUR BEING ABLE TO DO SOME TASKS FOR OR MINOR IMPERFECTIONS, ENSURING SUCH A WELL-KNOWN BRAND. ALL EFFECTIVENESS OF VISUALS ACROSS DIFFERENT OF THE LEARNERS REALLY ENJOYED SIZES AND FORMATS, THESE ADJUSTMENTS THE EXPERIENCE OF WORKING IN ARE TO THE IMAGE AS A WHOLE AND NOT THE A REAL-LIFE ENVIRONMENT. MODELS WE USE YOU COULD SEE THE PRIDE IN ALL OF THEM.” DREW BAKER, ST JOHN’S COLLEGE, BRIGHTON

12 BUILDING FOR THE FUTURE 2014—15 For 40 years, The Body Shop has worked KEY ACHIEVEMENTS tirelessly to promote and defend human rights. We use our global presence to campaign for 1991 human rights in the media and in our stores. The Body Shop supported the Tie We also work with our suppliers to expand a Yellow Ribbon campaign, which ethical trade practices that respect led to the release of hostage John workers’ rights. McCarthy after five years of captivity 1993 “OUR RESOURCES, PLUS THE Our Free the Ogoni 19 Campaign AUDIENCE OF MILLIONS PASSING BY was supported in 17 countries, ON THE PAVEMENT AND THROUGH raising awareness of people persecuted for protesting against OUR SHOPS AROUND THE WORLD, oil exploitation in Nigeria HAVE COMBINED TO RAISE PUBLIC CONSCIOUSNESS, ENCOURAGE 1998 Make Your Mark, our global campaign ACTION AND EDUCATE.” with to DAME ANITA RODDICK highlight the plight of human rights defenders, collected over 3 million signatures and helped secure the release of 17 prisoners 2000 We established the Human Rights Award for grassroots human rights activists 2004—2008 DEFEND Our global Stop Violence in the Home campaign raised awareness, generated funds for women’s crisis centres and helped lead to domestic violence HUMAN RIGHTS being made illegal in Indonesia 2008—2010 In partnership with MTV International, we raised £2 million for the Staying Alive Foundation to raise HIV and AIDS awareness among young people 2009—2012 Our Stop Sex Trafficking of Children and Young People campaign mobilised 7 million people to demand action. 24 governments committed to introduce new legislation to give greater protection to those at risk and support to those affected

BUILDING FOR THE FUTURE 2014—15 15 HUMAN RIGHTS CAUSES CHAMPIONED SINCE 1976 ACTIVITIES AND THE RIGHT TO EQUALITY RELIEF PROVIDING HUMANITARIAN ACHIEVEMENTS 2014–2015 In 2014–2015 we initiated diversity and inclusion training for our UK-based international head office employees, to underpin our global diversity and inclusion strategy. We will roll this training Our work to defend human out across all employees in 2016 to ensure that diversity and rights in the past two years inclusion permeate everything we do. has involved fundraising, awareness-raising and helping to implement good practice around the world.

THE RIGHT TO EDUCATION

We raised over £200,000 for War Child through pre-packed Christmas gifts sold in 2014. The funds raised will support 6,000 children displaced by war to meet their education needs, ranging from early years education to special classes to catch up on missed schooling. This support covers the cost of around 5.27 million lessons – one lesson per gift sold – giving children PREVENTING in Afghanistan, Jordan, the Democratic Republic of the Congo and Sudan hope for a HIV better future. & AIDS AND SUPPORTING THE RIGHT TO WATER ETHICAL TRADE AND SANITATION PEOPLE To have a positive impact on the lives of the people who AT RISK Our Christmas 2015 and make our products, we work with suppliers in more than Ramadan 2016 fundraising 20 countries to improve workers’ rights and supply chain aims to raise £210,000 to help ethics. Our code of conduct, assessments and external BU Water Aid improve health and auditing apply to 130 factories and 40,000 workers. N IL IO D hygiene through access to clean T I water. Through sales of special To support our vision and drive improvements we are a member A N I G gift sets, we will fund projects of the Ethical Trading Initiative and share good practice

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P including a water, sanitation with other retailers and local partners. Our Ethical Trade

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E and hygiene programme in programme promotes respect for workers and the environment, N A

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C Arba Minch Zuria, Ethiopia, but it can also have business benefits for our suppliers. Just

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N where 40% of people cannot a year after engaging in a capacity building workshop run D access clean water. Our plans through our Ethical Trade programme, one Chinese factory to help the community build has indicated an improvement in their productivity. a new water supply, safe toilets and share hygiene We continued to hold an ethical trade day for our suppliers in STOPPING messages will help to reduce , where we are focused on ensuring that we work with ONLINE disease, improve harvests and suppliers who are committed to reaching The Body Shop’s BULLYING increase school attendance. own standards. Held in conjunction with L’Oréal, H&M and the sustainable business specialist BSR (Business for Social Responsibility), our 2015 event focused on workers’ rights and supply chain transparency.

16 BUILDING FOR THE FUTURE 2014—15 BUILDING FOR THE FUTURE 2014—15 17 The Body Shop position is “WE HAD ALWAYS CAMPAIGNED VIGOROUSLY clear: testing cosmetics AGAINST TESTING COSMETICS PRODUCTS and toiletries on animals is ON ANIMALS BECAUSE WE THOUGHT IT WAS unethical. We have a long history of campaigning to TOTALLY UNACCEPTABLE [THAT] ANIMALS end this practice across the SHOULD SUFFER FOR VANITY.” world. All The Body Shop DAME ANITA RODDICK products are vegetarian and free from animal cruelty.

KEY ACHIEVEMENTS 1989 The Body Shop started campaigning to end animal testing in cosmetics, the first cosmetics company to do so 1998 Following our sustained campaign, the UK government banned animal testing of cosmetic products and ingredients 2004 Campaigning by The Body Shop AGAINST and BUAV (British Union for the Abolition of Vivisection) contributed to a European Union ban on animal testing ANIMAL TESTING in cosmetic products 2009 The European Union banned animal testing in cosmetic ingredients 2013 We celebrate a new milestone as the sale and import of animal tested products and ingredients is banned in the EU. Our campaign continues as A PIONEERING ROLE we collect 1 million signatures in support of Cruelty Free Our belief that animal transformed the cosmetics International for a global ban testing is not necessary to industry. For example, 2013 on animal testing in cosmetics prove the safety of cosmetic EU legislation that we helped ingredients or product bring about means that the formulations has been at sale and import of animal the heart of The Body Shop tested cosmetic products and for 40 years. We were once ingredients is banned for any a lone corporate voice on company trading in Europe. this issue. Thankfully, that We are proud that cruelty- voice was listened to. free cosmetics are now the Today, new technology and norm in much of the world. legislation has permanently

BUILDING FOR THE FUTURE 2014—15 19 ACTIVITIES AND ACHIEVEMENTS 2014–2015

As others in our industry have followed our lead Against Animal Testing in the beauty industry, we continue to advocate for global change whilst ensuring that we meet our own high standards. All The Body Shop products and ingredients undergo extensive testing to ensure that they are safe and effective, whilst also remaining cruelty-free.

We use three main testing methods involving computer data, laboratory-created tissues and people:

• In-silica (computer-based) analysis uses readily available, existing data which will help us to assess the suitability of similar materials through a process of extrapolation of this information

• Laboratory-produced EpiSkin, grown from human skin cells, allows us to conduct safety checks on cells that react in virtually the same way as human skin without harming any people or animals

• Finally to ensure good tolerance on people we will AWARDS FOR THE BODY SHOP’S STANCE often test our products using AGAINST ANIMAL TESTING patch testing, which involves 1997 placing a very small amount The first international cosmetics company recognised under of product on a person’s the Humane Cosmetics Standard skin to ensure that it is safe and effective, usually at the 2006 final stage of testing a new Best Cruelty-free Cosmetics Award from PETA formulation. We will also carry (People for the Ethical Treatment of Animals) out controlled user trials where people test our products for 2008 both skin compatability and Lifetime Achievement Award from the RSPCA (UK Royal cosmetic effectiveness, under Society for the Prevention of Cruelty to Animals) the supervision of medical experts when required

20 BUILDING FOR THE FUTURE 2014—15 The Body Shop was an early “HAVING CHOSEN TO TAKE AN ETHICAL POSITION pioneer in green business ON THE ENVIRONMENT, THE IDEALS HAVE and we constantly explore TO BE SHARED BY EVERYONE CONNECTED ways to run our business in a more environmentally WITH THE BUSINESS – STAFF, SUPPLIERS AND sustainable way. CUSTOMERS. WE ARE NOT JUST INTERESTED IN GOOD HOUSEKEEPING, WE ALSO WANT CHANGE: KEY ACHIEVEMENTS LOCALLY, NATIONALLY AND INTERNATIONALLY.” DAME ANITA RODDICK 1986 The Body Shop launched Save the Whale, in partnership with . We set up an Environmental Projects Department to coordinate our campaigns and commercial practices 1989 Our Stop the Burning campaign collected almost 1 million signatures to help save the Brazilian rainforest, calling on the government to reduce burning of the Amazon 1993 PROTECT THE We banned PVC in our packaging 2002 PLANET Our Choose Positive Energy campaign with Greenpeace promoted renewable energy, presenting over 6 million signatures to the World Summit for Sustainable Development 2004 We were a founder member of the Roundtable on Sustainable (RSPO) – set up to promote the use and growth of sustainable palm oil 2007 All of our products became 100% vegetarian 2012 We launched our Pulse stores, featuring more energy-efficient lighting and sustainable shop fit materials

BUILDING FOR THE FUTURE 2014—15 23 ENVIRONMENTAL ISSUES ACTIVITIES AND ACHIEVEMENTS CHAMPIONED SINCE 1976 2014–2015

ENERGY AND CO2 CO2 EMISSIONS FROM OUR STORES CO2 EMISSIONS FROM OUR SITES

4500 25000

22500 20000 3400 3000 3000 3000 18000 15500

2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015

CO2 emissions in tonnes* CO2 emissions in tonnes **

Globally, we continue to explore ways to reduce of renewable energy where possible. our energy consumption and harness renewable We encourage the third party contractors energy across the business. who transport our products around the world to adopt more sustainable practices such We continued an impressive decline in our stores’ as using low emission vehicles and ways of During 2014–2015, as well as pursuing our strategy and Enrich Not Exploit™ Commitment CO2 emissions, based on increased rollout of our moving more products in fewer journeys. aims of reducing our environmental impact, we towards building on our environmental increasingly energy-efficient Pulse stores, which invested a lot of time and resources in a wide- strengths and addressing areas where use low-energy LED lighting and more recycled ranging sustainability audit. This knowledge our performance is less strong. materials. As of 2015, just over 50% of all our REPORTING DATA has enabled us to tailor our 2016–2020 stores sourced renewable energy. Increasing All data presented here is up to November 2015. the number of stores using renewable energy *Data for company stores is based on actual numbers remains a challenge, as infrastructure in for a sample range of stores and extrapolated across many countries where we operate cannot all our stores except franchised stores.

meet our renewable energy needs. We **Data for sites is actual data for our three largest sites – remain committed to increasing our use and (UK) and North Carolina (USA).

24 BUILDING FOR THE FUTURE 2014—15 BUILDING FOR THE FUTURE 2014—15 25 USE OF RESOURCES

SITES WASTE SITES WATER

SITE RECYCLING SITE LANDFILL 1610 14100

12000 12100 1200 1210 11000 1150 9500 1000

590

200 200

30 10

2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015

Waste in tonnes *** Water in cubic metres***

To minimise our environmental in line with our body products. From 2012 to 2014, our Wood impact, we research and aim By the end of 2015, all our Positive programme with the to source sustainable materials products were free from World Land Trust ensured to use in our products, polyethylene microbeads, that we planted and protected packaging and stores. We are addressing discussions more trees than we used in also focused on reducing our with key stakeholders who our packaging. Through this water consumption across the are concerned about non- programme, we protected 200 business and remain committed biodegradable materials in hectares of forest and restored to reducing the amount of the marine food chain. 89 hectares of habitat in landfill waste we generate. Mexico, Ecuador and Brazil. We have reduced the Following introduction of our environmental impact of many In 2015, we replaced the pioneering waste-reduction of our product packaging plastic vac forms used in gift machine to separate products ranges, through technological packaging with corrugated from their packaging in 2013, innovations that reduce the card; this change has helped us we started processing much volume and weight of packaging reduce our use of plastic by 154 more waste and increased our materials. We have extended tonnes. In addition by reducing levels of recycling, resulting our use of glass packaging as the weight of each Body Butter in a reduction in our use research indicates that glass jar by just 2 grams, we will of landfill in 2014–2015. has high recycling rates among reduce our use of plastic However, we fell short of our consumers. Where possible – by a further 39 tonnes. own expectations by failing in around 25% of our glass to detect a leak in one of and plastic product packaging our US sites, leading to an – we use post-consumer overall increase in water use. recycled plastic and glass. This has now been fixed. All of our wood-derived packaging, accessories and Since June 2014 we have shop fit materials are Forest reformulated our Stewardship Council (FSC)- *** All data presented here is up to November 2015. Data for sites is actual skincare products to contain certified, indicating they come data for our three largest sites London and naturally derived exfoliants, from sustainable sources. Littlehampton (UK) and North Carolina (USA)

26 BUILDING FOR THE FUTURE 2014—15 KEY ACHIEVEMENTS The Body Shop Foundation is the charitable arm of The Body Shop. It funds innovative social and environmental projects around 1989 the world. The The Body Shop Foundation was formed as a way on Since 1989, The Body Shop Foundation has donated over £21 consolidating company giving million to thousands of small projects and charities focusing on and our first two core projects human rights, animal welfare and environmental protection. were the Eastern European Relief Drive (now Children on the Edge) and Brazilian Healthcre Project (now Amazon Rainforest Foundatiom) 1991–1993 Gordon Roddick brings the idea of a street newspaper sold by and for homeless people back from his travels from USA. ‘The Big Issue’ becomes the third core project of The Body Shop Foundation 1997 We offered NGOs rent-free accommodation in London, including the Big Issue, The Movement for the Survival of the Ogoni People and THE BODY SHOP Womankind Worldwide 2004 We awarded Womankind FOUNDATION Worldwide £30,000 to support women’s empowerment in 70 countries 2007 The Body Shop Foundation benefited from 3,308 volunteering hours (around 40% of time donated was by The Body Shop employees) 2012–2015 The Body Shop Foundation develops a ‘Challenge Programme’, matching international volunteers with different challenges, benefitting different causes. Over the 3 years, over 130 global participants have trekked, cycled, climbed, rafted and helped build a community school raising just under £200k between them, whilst raising awareness on the issues highlighted

BUILDING FOR THE FUTURE 2014—15 29 ACTIVITIES AND ACHIEVEMENTS 2014–2015

THE BODY SHOP FOUNDATION’S FUNDING FOCUS 2014-2015 43 DIFFERENT COUNTRIES RECEIVED FUNDING 45 ANIMAL PROTECTION GROUPS FUNDED: £249,637 47 HUMAN RIGHTS GROUPS FUNDED: £308,289 39 ENVIRONMENTAL PROTECTION GROUPS FUNDED: £205,901

“FUNDING FROM The Body Shop Foundation’s Since 2013 we have partnered USAID AND activities are diverse. Here’s with Village Water, benefiting THE BODY SHOP a flavour of how our recent 11 communities through water, work has had a positive sanitation and hygiene projects FOUNDATION impact on just one issue – to reduce life-threatening WILL ALLOW OUR water and sanitation. diseases. We have helped RESEARCH TO OFFER train people to build low-cost AN INNOVATIVE AND We are providing £20,000 sanitation facilities using locally to create a multi-lingual available materials. EFFECTIVE SANITATION emergency sanitation manual The Body Shop Foundation SAFETY PLANNING for use by NGOs, based on and The Body Shop UK also PROTOCOL. WE HOPE proven approaches including publicised Village Water’s THAT SANITATION USAID-funded research at 2014 Well Good appeal online, the University of Brighton. helping to reach almost ISSUES WITHIN Worldwide, water and sanitation 300,000 people and secure a DISASTER ZONES WILL problems are the second grant of £287,392 from the UK BE GREATLY CHANGED biggest killer of children Department for International FOR THE BETTER.” under five – particularly Development (DFID). in times of crisis, such as To find out more about HUW TAYLOR, PROFESSOR disease outbreaks, forced The Body Shop Foundation, visit OF MICROBIAL ECOLOGY, migration and earthquakes. www.thebodyshopfoundation.org UNIVERSITY OF BRIGHTON

30 BUILDING FOR THE FUTURE 2014—15 “THE BODY SHOP IS CURRENTLY METAMORPHOSING, BUT WE WILL SURVIVE AND THRIVE BECAUSE WE HAVE A CONSISTENT RESPECT FOR OUR HERITAGE. THE COMPANY STANDS FOR SOMETHING OTHER THAN A MOISTURISER AND PROFITS. THIS IS THE MODEL FOR THE FUTURE.” DAME ANITA RODDICK

OUR EVOLUTION TOWARDS OUR ENRICH NOT EXPLOIT™ COMMITMENT

THE REMAINDER OF THIS REPORT OUTLINES THE BODY SHOP’S GLOBAL ENRICH NOT EXPLOIT™ COMMITMENT FOR 2020.

DEVELOPED DURING 2013, THIS ORGANISATION- WIDE COMMITMENT WILL DRIVE OUR PERFORMANCE OVER THE NEXT YEARS AND STEER OUR LONG-TERM COURSE.

BUILDING FOR THE FUTURE 2014—15 33 The Body Shop’s founding principle was to be the first step on our journey a force for positive change. This has guided us to achieving our aim to be the world’s most through 40 years of growth, from a one-woman ethical and truly sustainable global business. enterprise with a single UK shop to a global business operating in 67 countries. This Commitment builds on the L’Oréal Group’s Sharing Beauty We were corporate social responsibility With All sustainability strategy while pioneers, among the first global businesses taking forward the essence to practise fair trade and conduct social and of The Body Shop’s founding environmental campaigns. While we maintain principles in a new way to meet these values today, they are less distinctive the challenges of a new era. in 2016 than in 1976. It is time to move on. Our Enrich Not Exploit™ Commitment will The challenges facing the world have changed use our global presence to be a powerful, significantly in the past 40 years. We recognise positive force for change and look to that the earth’s resources are finite and influence others to join us. We are cannot sustain humanity’s current behaviour. now putting this into practice We urgently need to tackle climate change, globally, across all areas of our business. habitat destruction, species depletion and the growing inequality between rich and poor.

At the same time, advances in science and Christopher Davis OUR AIM IS TO BE technology have given us new insights into International Director of Corporate these problems, tools to help address them and Responsibility and Campaigns new ways of sharing important messages.

THE WORLD’S MOST The key challenge facing The Body Shop at this milestone anniversary is how to orient ourselves in this new global landscape so we can achieve our aim of being the world’s most ETHICAL AND ethical and truly sustainable global business.

Since 2013, we have worked hard to re-establish TRULY SUSTAINABLE ourselves as a trailblazer for positive change, influenced by the growing body of scientific knowledge around sustainability (see page 38 for more information). We are refocusing ourselves GLOBAL BUSINESS to meet the challenges facing our planet and its people in a more consistent and strategic way.

To do this, we undertook a comprehensive review of our business across all areas and 67 countries. We also implemented systems, training and reporting to monitor progress against tough new targets. And we created a new internal advisory group and a number of inter-departmental working groups to facilitate co-operation and new ways of working across the business.

This process has led to The Body Shop’s Enrich Not Exploit™ Commitment, which leverages our proud heritage and reflects our aim. It demonstrates that we have the confidence to try new approaches and the humility to learn from past mistakes as well as triumphs. It is

BUILDING FOR THE FUTURE 2014—15 35 Our Enrich Not Exploit™ products have a positive rather We also undertook Commitment is our first than a negative social and research to ensure that the towards our aim of being the environmental impact. Enrich Not Exploit™ world’s most ethical and truly Commitment resonates with sustainable global business. Throughout 2013, 2014 and colleagues and consumers from 2015 we researched, developed around the world, as their RIGOROUS APPROACH and refined our new approach involvement will be the key to HOW WE Our Enrich Not Exploit™ to meeting our aim in a its success. Commitment is based on the systematic way. In doing so, knowledge that our planet we were inspired by academic COMBINING PRINCIPLES maintains critical life systems, research, theories and AND PRACTICE: PEOPLE, CAME UP WITH provides all of our raw frameworks from experts in materials, and assimilates many fields, including leading PRODUCTS AND PLANET ™ any waste we produce. scientists, inter-governmental The primary focus of the Advances in science and agencies and non-governmental Commitment is using ENRICH NOT EXPLOIT technology have given the organisations. Debates, The Body Shop’s scale and world new knowledge and we discussions and workshops networks to address the most have used this knowledge to with the Building Research critical problems facing our develop our Commitment. Establishment, the Eden planet. By mapping the world’s The Body Shop’s response Project, Future-Fit Foundation, challenges and where to what this new knowledge The University of Brighton The Body Shop can have tells us must be to refocus and with The University the most positive impact, we and redouble our sustainable of Cambridge Institute for identified the three core pillars and ethical efforts to meet Sustainability Leadership were of the Commitment: People, unprecedented challenges particularly influential and Products and Planet. facing the world and its people. inspiring. Each of these three pillars For 40 years, The Body Shop Alongside this, we conducted has specific targets to help us showed the world that business a thorough review of activities inspire and engage action – and could be a force for good. and performance in all of our measure progress – towards We are using everything we business areas – from sourcing our ultimate aim of being the learned in the past 40 years renewable raw materials to world’s most ethical and truly to set about becoming the package design and managing sustainable global business. most ethical business that is transport networks, stores truly sustainable and delivers and offices. This serves as a long-term commercial success baseline and has influenced without damaging the earth’s the detailed targets and ecosystems. We want to ensure performance measures we will that our business and our use up to 2020.

BUILDING FOR THE FUTURE 2014—15 37 STEPS TOWARDS A TRULY SUSTAINABLE BUSINESS

Instead of being driven by 1. Source all inputs comparisons with our past in ways that have performance, competitors no negative social or environmental impact or industry standards, our Enrich Not Exploit™ 2. Emit no substances Commitment is inspired by which could harm the environment or society the needs of our planet and its people. This is not simply about 3. Ensure the presence doing less harm, but rather of the business does not cause disruption about actively working toward to ecosystems a clear destination: a future in which humanity and other life 4. Meet needs without any environmental can flourish on Earth forever. impact, during product Every company needs to do use and at end of life its bit if such a future is to 5. Create a working become a reality. But what environment within which all employees part must The Body Shop play? can flourish To answer that question, we worked with the Future-Fit 6. Help to create thriving communities wherever Foundation, building on best- the business operates available science to define seven long-term goals that 7. Engage and empower customers to act in the we must ultimately strive best interests of people to meet to fulfil our aim: and the environment

38 BUILDING FOR THE FUTURE 2014—15 Fundamentally, the Commitment represents The Body Shop’s first steps towards becoming the kind of business we want to be and the kind of world we want to inhabit. ENRICH OUR PEOPLE It reflects The Body Shop’s core principles and strengths We celebrate the diversity – things that set our brand apart. And it focuses on of people and reject a The Body Shop re-establishing a leading role in ethical stereotype of beauty. and sustainable business. Paying fair prices to our Community Trade partners Our Enrich Not Exploit™ Commitment is the expression is central to everything of our values and who we are. We recognise that we do. We campaign for diverse people inside and outside our organisation what’s right. We help our inspire and enrich our business, and that we need to employees grow as people. engage these people to achieve our aims. They also recognise our power and responsibility as a trusted global CORE business to treat people fairly, reduce our environmental impact and do what we can to protect the earth’s precious resources – before it is too late. ELEMENTS ENRICH OUR PRODUCTS Our products nourish, enrich OUR MANIFESTO and uplift but never make false promises. Our products OF THE OUR STORY STARTED WITH ANITA RODDICK’S are inspired by the diversity BELIEF IN SOMETHING REVOLUTIONARY; THAT of nature and customs of people around the world. We BUSINESS COULD BE A FORCE FOR GOOD, AND are experts in caring for IN 1976 THE BODY SHOP WAS BORN. WE’VE all different skin types and COMMITMENT take pride in knowing how ALWAYS DONE THINGS DIFFERENTLY, BROKEN THE MOULD, BEEN BOLD, BEEN BRAVE. to make them feel so good. TODAY, OUR COMMITMENT IS STRONGER THAN EVER; TO ENRICH, NOT EXPLOIT. FOR US, THIS MEANS ENRICHING PEOPLE AS WELL AS OUR PLANET, ITS BIODIVERSITY AND ENRICH OUR PLANET The world is our source of RESOURCES. WE ARE COMMITTED TO WORKING beauty, but it’s facing FAIRLY WITH OUR FARMERS AND SUPPLIERS devastation. We actively help AND HELPING COMMUNITIES TO THRIVE. OUR enrich the biodiversity where PRODUCTS ENRICH, BUT NEVER MAKE FALSE we grow our ingredients. We act and campaign to enrich PROMISES AND ARE NEVER TESTED ON ANIMALS. and support threatened areas WE ARE PROUD TO BE ORIGINAL, IRREVERENT of outstanding natural value to the planet. AND CAMPAIGN FOR WHAT’S RIGHT; TOGETHER WE CAN DO IT. ENRICH NOT EXPLOIT™. IT’S IN OUR HANDS.

BUILDING FOR THE FUTURE 2014—15 41 42 this relationship is at risk. at is relationship this as now act to need humans but thrive to other each We need planet. our and humans between relationship ofasymbiotic vision our illustrate logo nature and in our hands’ and our hand ‘It’s strapline Commitment Not Exploit Enrich The STRAPLINEOUR LOGO AND

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Our Enrich Not Exploit™ Commitment includes 14 targets for The Body Shop to achieve by 2020*. The targets are the clearest manifestation of who we are and what we stand for as we take the first step towards achieving our aim. They will drive our performance in key areas and our overall progress towards our ultimate aim of being the world’s most ethical and truly sustainable global business.

TARGET 1: so we can share good practice across our wider DOUBLE OUR COMMUNITY supply chain. THE TRADE PROGRAMME FROM 19 HOW WILL WE REACH THIS TARGET? TO 40 INGREDIENTS AND HELP By working with our partners across the L’Oréal ENRICH THE COMMUNITIES Group to develop formulations that promote the very best practices in our supply chain. Some of COMMITMENT: THAT PRODUCE THEM the next 21 ingredients will be existing high- volume materials, where we will work with WHY IS THIS IMPORTANT? producers to attain Community Trade status. Our Community Trade partners demonstrate Others will be ingredients entirely new to us. OUR TARGETS the best sustainability practices, standards and approaches in our supply chain, ranging HOW WILL WE MEASURE IT? from new agricultural techniques and smarter By tracking the number of ingredients that production methods to positive impacts on local have attained Community Trade status and are communities and ecosystems. They help us learn currently in production.

TARGET 2: suppliers, primarily for people living with HELP 40,000 ECONOMICALLY disabilities, people from ethnic minorities and the long-term unemployed. Aligned to L’Oréal VULNERABLE PEOPLE ACCESS Group’s Solidarity Sourcing programme, WORK AROUND THE WORLD we will develop projects with each supplier, often supported by local non-governmental WHY IS THIS IMPORTANT? organisations or other partners. For economically vulnerable and marginalised people, having a job can transform the future. HOW WILL WE MEASURE IT? Employment allows people to take control Our regular supplier reporting and auditing of their lives and provide for their families’ process will record the number of people basic needs such as food, shelter, education employed. We will audit the number of people and healthcare. benefiting from work as part of our broader sustainable sourcing programme. HOW WILL WE REACH THIS TARGET? We will focus on increasing access to work in small businesses and Community Trade

*One target (14) is to be achieved by 2016

BUILDING FOR THE FUTURE 2014—15 45 TARGET 3: HOW WILL WE REACH THIS TARGET? ENGAGE 8 MILLION PEOPLE We will promote our campaigns across ™ all of our communication platforms – our IN OUR ENRICH NOT EXPLOIT stores, our website, via the media and with MISSION, CREATING OUR external partners to raise awareness and BIGGEST CAMPAIGN EVER involve new and existing customers. We will present our campaigns in new and different WHY IS THIS IMPORTANT? ways to maximise customer engagement. The people of the world need to act now, and in large numbers, to help safeguard HOW WILL WE MEASURE IT? our planet. As a trusted global brand with We will count the number of people who sign a history of successful activism, we are our petitions. We will also track the number of uniquely able to voice the concerns of millions national and international institutions who we of customers and persuade decision-makers lobby for change and will report on our impact. around the world to implement measures to secure long-term positive change.

TARGET 5: we will establish the country of origin for ENSURE THAT 100% OF OUR all renewable raw materials we use. We will also conduct comprehensive risk assessments NATURAL INGREDIENTS ARE so we can ensure social and environmental TRACEABLE AND SUSTAINABLY accountability across all priority supply chains. SOURCED, PROTECTING Protecting 10,000 hectares: Our priority 10,000 HECTARES OF FOREST ingredient to help protect forest habitat AND OTHER HABITATS is our Community Trade Brazil nut oil from Peru. Sourcing this ingredient helps WHY IS THIS IMPORTANT? the local community secure a reliable and 100% traceability & sustainability: Unless sustainable income without damaging the we know where our raw materials come forest. This approach is in line with best from and the conditions under which they practice recommended by World Wildlife are produced, we cannot truly measure or Fund (WWF) and the Rainforest Alliance. TARGET 4: HOW WILL WE REACH THIS TARGET? manage our impact on planet and people. We aim to expand it to beeswax from INVEST 250,000 HOURS OF We will give every employee up to three days Cameroon and honey from Ethiopia in 2016. a year (pro rata for part-time employees) to Protecting 10,000 hectares: Forests and OUR SKILLS AND KNOW-HOW volunteer in their local community. Teams can other natural habitats are crucial life- HOW WILL WE MEASURE IT? TO ENRICH THE BIODIVERSITY decide how best to use this time but will provide support systems for our planet, absorbing 100% traceability & sustainability: We will track OF OUR LOCAL COMMUNITIES guidance to ensure that skills are used where CO2 to reduce the impact of climate change the proportion of renewable raw materials for they can create the biggest difference, for and hosting rich biodiversity. Conserving which we have confirmed the country of origin, WHY IS THIS IMPORTANT? instance by working with local charity partners. these habitats safeguards resources for established legal compliance, assessed social and The Body Shop’s 25,000-strong workforce future generations while protecting the environmental risks and ensured accountability. includes people highly skilled in areas such as HOW WILL WE MEASURE IT? way of life of indigenous people. retail, supply chain management, marketing, We will measure the number of hours our Protecting 10,000 hectares: We will divide finance and IT. Our employees’ skills and teams contribute in their local communities. HOW WILL WE REACH THIS TARGET? the tonnage of renewable raw materials we passion have the potential to make a positive We will also share stories of colleagues’ 100% traceability & sustainability: In line purchase from relevant habitats by the area impact on the communities where they work. community achievements around the with the L’Oreal Group’s Sharing Beauty required to generate this volume of material. world to demonstrate the positive impact With All sustainability programme, and This approach reflects current best practice of our community involvement. drawing on expertise from our well- for monitoring and evaluating the conservation established Community Trade programme, benefit of non-timber forest products.

46 BUILDING FOR THE FUTURE 2014—15 BUILDING FOR THE FUTURE 2014—15 47 TARGET 6: meet or exceed this standard will require TARGET 8: specific species, the wider ecosystem and the REDUCE YEAR ON YEAR THE senior management permission to launch. While DEVELOP AN INNOVATION livelihoods of local communities. we may occasionally launch products that do ENVIRONMENTAL FOOTPRINT not meet the category average, each product PIPELINE THAT DELIVERS HOW WILL WE REACH THIS TARGET? OF ALL OUR PRODUCT category will deliver overall year on year PIONEERING COSMETIC We will work with ingredient and biodiversity CATEGORIES improvement in these environmental standards. INGREDIENTS WHICH ARE specialists around the world, including Fauna and Flora International, to identify at least WHY IS THIS IMPORTANT? HOW WILL WE MEASURE IT? SUSTAINABLY SOURCED FROM three effective cosmetic ingredients from All consumer products enter the environment We are currently assessing every ingredient BIODIVERSITY HOTSPOTS biodiversity hotspots, where our sourcing helps at some stage, either while they are used or we use to understand how biodegradable it AND HELPS TO ENRICH THESE to protect people and the planet. We will use when they are disposed of. We need to be able is and the level of dilution required to avoid these ingredients in new product formulations to measure the potential environmental impact any negative environmental impact (its water AREAS and will work with our grassroots partners to of our products and set targets to reduce this footprint). These two indicators will enable us support sustainable practices. impact in the future. to compare the environmental impact of every WHY IS THIS IMPORTANT? formulation we produce. We will calculate Ingredient innovation is vital for our business, HOW WILL WE MEASURE IT? HOW WILL WE REACH THIS TARGET? averages for each formula type or category, enabling us to develop new and improved By tracking the number of ingredients sourced Every time we develop a new formula for launch which will become the target for new formulas products. We know the planet’s biodiversity is in line with our rigorous selection criteria: we will calculate its biodegradability and water to meet or exceed. We will recalculate the a great source of innovative materials, and • proven cosmetic benefit; footprint and check these against the product averages annually, driving us to improve the also that biodiversity hotspots need urgent • feedstock that is traceable category average. Any formula that does not environmental footprint of our products. protection. We will therefore seek out and source to a biodiversity hotspot; ingredients from globally recognised biodiversity • help protect biodiversity; hotspots. Our sourcing programme will select • not currently used by The Body Shop; ingredients which drive the performance of our • relatively unknown in the rest of the products and help sustain cosmetics industry.

TARGET 9: connect endangered habitats to protect them BUILD BIO-BRIDGES, and will support habitat regeneration where necessary. We will link this with our efforts PROTECTING & REGENERATING to source sustainable ingredients and support 75 MILLION SQUARE METRES communities in biodiversity hotspots. From June OF HABITAT, HELPING 2016, Bio-Bridges will be an annual campaign in-store and online. During the campaigns, COMMUNITIES TO LIVE we will protect one square metre of habitat MORE SUSTAINABLY for each customer transaction by donating funds to our partner World Land Trust. WHY IS THIS IMPORTANT? Habitat loss, largely caused by farming HOW WILL WE MEASURE IT? expansion and intensive harvesting of This scheme will be accredited by the TARGET 7: open about our environmental performance forest products, is arguably the greatest Climate, Community and Biodiversity Alliance PUBLISH OUR USE OF to ensure that we are fully accountable to threat to our planet’s biodiversity. This is (CCBA), demonstrating its climate, social and our customers and other stakeholders. important to us as citizens of the world, biodiversity benefits. To comply with this INGREDIENTS OF NATURAL but also specifically threatens the future accreditation, we will need to report impact; ORIGIN, INGREDIENTS FROM HOW WILL WE REACH THIS TARGET? of key parts of our supply chain. As a primarily areas protected, impact on local GREEN CHEMISTRY, AND Once we have finished assessing our raw business that aims to be environmentally biodiversity and community engagement plus material portfolio, we will calculate the sustainable, protecting endangered habitats report on areas we have protected each year. THE BIODEGRADABILITY biodegradability, water footprint and ingredients is vitally important to The Body Shop. AND WATER FOOTPRINT of natural origin for each of our products. We OF OUR PRODUCTS will publish this information on our website. HOW WILL WE REACH THIS TARGET? Bio-Bridges will help us protect biodiversity HOW WILL WE MEASURE IT? around the world in a holistic way. We will WHY IS THIS IMPORTANT? We will track the amount and percentage of The world’s non-renewable resources are product information published on our website, running out so we must increase our use of both by the number of products covered and natural ingredients from readily renewable the type of information (biodegradability, sources to help reduce our environmental water footprint, ingredients of natural impact. We want to be transparent and origin, ingredients from green chemistry).

48 BUILDING FOR THE FUTURE 2014—15 BUILDING FOR THE FUTURE 2014—15 49 TARGET 10: scores improve when stores are refurbished or TARGET 13: HOW WILL WE REACH THIS TARGET? REDUCE THE ENVIRONMENTAL redesigned. We will reduce our stores’ energy POWER 100% OF OUR In countries where our stores do not consumption by utilising better technology, currently run on renewable energy, we will FOOTPRINT OF OUR STORES improved LED lighting, and using more recycled STORES WITH RENEWABLE OR do what we can to access renewable energy EVERY TIME WE REFURBISH OR and recyclable materials. CARBON-BALANCED ENERGY sources. Where this is not possible because REDESIGN THEM of local market conditions, we will invest in HOW WILL WE MEASURE IT? WHY IS THIS IMPORTANT? schemes with local partner organisations WHY IS THIS IMPORTANT? We will use the best practice Material Scoring Use of non-renewable energy that produces to balance (offset) our carbon emissions. Unsustainable use of raw materials contributes Mechanism and Low Impact Sustainability greenhouse gas emissions contributes to to the depletion of the earth’s natural resources, Tool (LIST) from the Buildings Research global climate change. To help tackle climate HOW WILL WE MEASURE IT? and the use of energy based on fossil fuels and Establishment (BRE) to rate the environmental change, businesses around the world need All our countries of operation will report twice resulting greenhouse gas emissions, such as credentials of all our shop fixtures. All of our to find renewable solutions for their energy a year on how their stores are powered. CO2, contribute to climate change. As a global countries of operation will report twice a year needs, and The Body Shop is no different. retailer, reducing the environmental impact of on their store energy consumption and stores’ our stores is a key part of reducing our overall energy source environmental footprint.

HOW WILL WE REACH THIS TARGET? We will do a sustainability assessment of the materials used in our stores in order and ensure

TARGET 11: HOW WILL WE REACH THIS TARGET? DEVELOP AND DELIVER We will create opportunities to research, develop and launch sustainable packaging materials, THREE NEW SUSTAINABLE both within and outside The Body Shop. We PACKAGING INNOVATIONS will engage external experts, from academic institutions to inventors, as well as maximising WHY IS THIS IMPORTANT? expertise in our own supply chain and L’Oréal Sustainable packaging helps us and Group. We will also harness new technologies our customers to reduce our impact on and existing technologies in a new context. the environment, by consuming fewer resources during production and increasing HOW WILL WE MEASURE IT? recyclability. We will rethink how we We will require any packaging innovations we package our products by innovating in use to deliver improved environmental results. our packaging design and materials.

TARGET 12: We have already identified and are testing ENSURE THAT 70% OF OUR potential opportunities to use plastic made from alternative carbon sources. Using PRODUCT PACKAGING DOES more recycled materials and increasing NOT CONTAIN FOSSIL FUELS our use of alternative or natural materials will also help us achieve our target WHY IS THIS IMPORTANT? TARGET 14: The world’s reliance on fossil fuels HOW WILL WE MEASURE IT? cannot continue – burning them is a We have reviewed our existing packaging and REDUCE BY 10% THE ENERGY HOW WILL WE REACH THIS TARGET? significant contributor to climate change. understand the amount of fossil-fuel based USE IN ALL OUR STORES* We have developed guidance to increase By reducing, and hopefully eventually materials we currently use. We will measure efficiencies in our stores through building eliminating, our use of plastic made from our progress against target every six months WHY IS THIS IMPORTANT? awareness of energy efficiency and ways of oil, The Body Shop supports the principle and will report the percentage of packaging As a business with environmental sustainablility reducing energy use, such as changing light of keeping fossil fuels in the ground. materials we use by material type, recycled at its heart, we want to jump start our global fixtures and adjusting temperature controls. material content, and whether the raw material energy efficiency in the first year of our HOW WILL WE REACH THIS TARGET? is from a fossil fuel or alternative carbon source. Commitment. This will help to build momentum HOW WILL WE MEASURE IT? We are developing a strategy to reduce our and employee engagement around our other We will track energy use in our stores, use of fossil fuels in packaging materials. environmental initiatives. by country.

*This target (14) is to be achieved by 2016

50 BUILDING FOR THE FUTURE 2014—15 BUILDING FOR THE FUTURE 2014—15 51 Our Enrich Not Exploit™ Commitment consists of 14 targets. It is underpinned by new systems and processes in all areas of our business – including our suppliers, raw materials, people and products – to ensure it drives our actions ever y day.

THE COMMITMENT:

MAKING AND Over the past two years we Across all 67 countries the power and influence of have reviewed, strengthened of operation, we will measure The Body Shop’s global retail and streamlined our core performance and progress structure. policies and systems to monitor in waste production, water MEASURING and evaluate performance in use and energy consumption, Our Commitment was developed line with our new strategy. including our use of in close partnership with our This will help us to achieve renewable energy. parent group. It is integrated in our targets and work towards L’Oréal Group’s Sharing Beauty our ultimate aim of being the In addition to internal With All sustainability strategy PROGRESS world’s most ethical and truly management reporting, we will and its four pillars: Innovating sustainable business. publish annual Commitment Sustainably, Producing reports to ensure we are Sustainably, Living Sustainably Regular reviews of our transparent about our business and Developing Sustainably. performance against clear practices and our progress policies and indicators will towards our targets. We will share our help us to make adjustments This will also enable others to experience and learning where necessary – and learn from our knowledge from our Enrich Not Exploit™ replicate our successes – to and experience. Commitment across the ensure The Body Shop remains L’Oréal Group as well as a pioneer in sustainable and WORKING AS PART OF The Body Shop family. ethical business. THE L’ORÉAL GROUP

To give an accurate picture To maximise our impact, of our impact we are making the Enrich Not Exploit™ our environmental and Commitment complements sustainability reporting more L’Oréal Group’s sustainability comprehensive than ever. strategy while harnessing

BUILDING FOR THE FUTURE 2014—15 53 THE COMMITMENT IS A COLLECTIVE ENDEAVOR BY THE WHOLE THE BODY SHOP FAMILY. WE HAVE WORKED HARD TO ENSURE THAT OUR COMMITMENT RESONATES WITH COLLEAGUES AND CUSTOMERS ALIKE, AS WE CANNOT DO IT WITHOUT THEM

We are delighted that a survey But that is just the beginning “ENRICH NOT among more than 500 of our and we will continually EXPLOIT STANDS FOR office employees has given engage and inspire colleagues very positive feedback on our and customers around the GIVING – TO SOCIETY, new Commitment. When we Commitment and will listen to ENVIRONMENT, shared the Enrich Not Exploit™ their views and ideas. ANIMALS OR PEOPLE. Commitment with 1,000 members of our customer research panel Employees will have access IT HAS A LOT from around the world, they to booklets and factsheets to OF HEART.” found it inspiring, honest keep them informed and help and a good reflection of what them spread the word. They THE BODY SHOP CUSTOMER, makes The Body Shop unique will also have opportunities to and respected. hear inspiring speakers and to question senior managers specific campaigns, activities “ENRICH NOT EXPLOIT about specific aspects of the and progress towards achieving Commitment in informal our Commitment online and via IS SIMPLE AND settings. We are also organising social media. STRAIGHTFORWARD. regular events such as IT EMPHASISES workshops and conferences to make sure that store employees RESPECT FOR THE and franchisee’s are fully ENVIRONMENT AND involved in the Commitment. FOR HUMAN BEINGS.” Alongside this, we will of THE BODY SHOP CUSTOMER, course share success stories BRAZIL and learning points about our

BUILDING FOR THE FUTURE 2014—15 55 OUR The Enrich Not Exploit™ Commitment is the first step on the ENRICH NOT EXPLOIT™ journey to achieving our aim– each small step by each of our COMMITMENT colleagues and customers will help, from making minor changes to their consumption patterns and behaviour to finding innovative WILL INFLUENCE environmental solutions and backing our campaigns. EVERYTHING THAT THE BODY SHOP Our Commitment will be driven by engaging with key DOES, EVERY DAY, ALL stakeholders across the world, notably with the Future Fit Foundation as we continue to explore and learn how to effectively OVER THE WORLD. apply the 7 goals of sustainable development to our business, as well as the University of Brighton and the Cambridge Institute for Sustainability Leadership.

Each year, we will publish a Commitment report to update internal and external stakeholders on The Body Shop’s progress towards our 2020 targets and our pledges. We will outline our performance against key indicators and will share lessons learned. THE THE JOURNEY STARTS NOW. TOGETHER WE CAN MAKE IT. COMMITMENT IN ACTION: IT’S IN OUR HANDS

BUILDING FOR THE FUTURE 2014—15 57 AREAS OF THE WORLD HUNGARY PHILIPPINES POLAND As at end of 2015, INDIA The Body Shop operates INDONESIA QATAR stores in the following IRISH REPUBLIC ROMANIA areas of the world: RUSSIA JAPAN SABAH (MY EAST) ANTIGUA JORDAN SARAWAK (MY EAST) KOREA SAUDI ARABIA EAST & CENTRAL LATVIA SAUDI ARABIA WEST LEBANON SINGAPORE BERMUDA LITHUANIA SOUTH AFRICA BOTSWANA LUXEMBOURG BRAZIL MACAU SRI LANKA BRUNEI WEST CZECH REPUBLIC MEXICO TAIWAN MONACO THAILAND EGYPT MOROCCO TURKEY ESTONIA NAMIBIA UNITED ARAB EMIRATES NEW ZEALAND USA VIETNAM PAKISTAN

© 2016 The Body Shop International Plc. All rights reserved Absolutely no reproduction without the permission of the owners ® Registered trademark of The Body Shop International Plc. ™ A trademark of The Body Shop International Plc.

58 BUILDING FOR THE FUTURE 2014—15