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Strategic sustainability frameworks – why the need, what they do, what they deliver

SHARPENING THE FOCUS: STRATEGIC SUSTAINABILITY FRAMEWORKS SALTERBAXTER

As companies have made more progress on sustainability and corporate responsibility, and both areas have become more central to corporate strategy and performance, one of the biggest new developments has been the attempt by companies to define their ambitions and their approach to sustainability and CR and to formalize this into some sort of plan or framework.

Like them or not (and most people seem to like them), Unilever’s Sustainable Living Plan and Marks & Spencer’s Plan A set the early benchmark for many others to follow.

The needs that prompt these frameworks are quite layered and can be different from company to company. Some needs are deeply commercial and strategic, some are more messaging and communications focused – and in reality they all interconnect.

In our experience the questions and needs they are addressing include:

Responding to symptoms of success: a company can find that in making serious commitments to this agenda it ends up with disparate activities and initiatives and needs to be brought together.

Connecting the outside in: done well, the frameworks clearly link to the external pressures and the business needs.

Setting direction and ambition: a framework helps to define ‘what good looks like’; it paints a picture of the destination you are aiming for and how high you are trying to jump.

Inspiration: the approach should capture the imagination and act as a beacon for what the company wants to achieve. This is where the blend of science/substance and creative thinking is needed.

Define measurement: companies measure themselves and ask to be measured against their framework, so they become a key part of the performance management toolkit for the business.

Drive internal understanding and change: the goals, targets and ambitions are almost always as much about making the programme as clear internally as it is externally. And they are most often a rallying call for change – indeed if they don’t support change then they are just wallpaper.

Memorability: let’s face it, sustainability can be boring and can turn people off. By calling their framework ‘Sharing Beauty With All’, L’Oréal was pointing to its business strategy but it also tapped into the spirit and culture of the company and made sustainability sound glamorous. So part of the role is simply to tell the story in a way that targets alone never can.

Create a platform for engagement with stakeholders: in many cases companies feel they need a platform and a reference point to start engaging with critics and external stakeholders. Not only is a framework useful for this, the leading companies bring stakeholders in to help create the framework.

How to align with business strategy: this one is fundamental. For sustainability/CR to be credible, now it has to show how it supports and even enhances the delivery of the commercial business strategy. That’s why so many frameworks are called ‘plans’ – because it helps them align to the main business planning language and priorities.

Aligning with (or sometimes helping to define) the corporate purpose: as most companies know, it’s hard to have a credible social purpose without it being built around social and environmental insights. In some cases the framework is the way in which the purpose is delivered, and in some it actually becomes the purpose almost by accident.

The responses to all these challenges come in many shapes and sizes, reflecting each individual company’s issues, ambitions, maturity on sustainability/CR, culture, and often the leadership’s style and personal commitment.

We work on many of these programmes at Salterbaxter, sometimes on the end-to-end process, and sometimes on individual components of the process. Indeed, these programmes are by definition a collaborative process with the client’s teams, blending external challenge and experience with internal knowledge. We dissect three of these over the coming pages, to help demonstrate the pieces that are needed, the problems they are solving, the inputs that drive them and the choices and thought processes that companies apply.

With the launch of the UN Sustainable Development Goals (SDGs) and as many companies approach the next phase of goal setting (many are now looking to set new plans as their 2020 goals and targets mature), we can expect to see a lot more frameworks, plans and commitments taking shape.

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STRATEGIC FRAMEWORKS: YOUR MULTIPURPOSE TOOL

Nigel Salter CEO, Salterbaxter

Olivia Sprinkel Head of Salterbaxter North America

Who is it for? A strategic framework provides a way of organising your ambition and sustainability goals in an easy-to-understand way.

Employees It makes it easy for employees to understand what the overall vision is that they are working towards; what the areas of focus are for sustainability; and how they can contribute.

Investors It enables investors to understand the sustainability strategy at-a-glance – and this is rising ever higher up their agenda. Blackrock CEO Larry Fink, in his 2017 annual letter to CEOs, called out the importance of ESG factors – “We look to see that a company is attuned to the key factors that contribute to long-term growth: sustainability of the business model and its operations, attention to external and environmental factors that could impact the company, and recognition of the company’s role as a member of the communities in which it operates.”

Suppliers/partners It makes it clear to suppliers what your company priorities are, as they are often central to delivery of these.

NGOs It provides a strong basis for engagement with NGOs.

Sometimes consumers And whilst the framework itself might not be directly communicated to consumers, apart from being on the website for those consumers who are most interested, it does provide structure to the areas that you communicate to consumers on, and ensure that you have the substance to take a stance on the issues that matter most to them.

What is it?A good strategic framework is like a Swiss army knife.

Well designed, neatly fitting together many moving parts, highly functional and with a multitude of uses.

We’re not suggesting that it will open a bottle of wine – but it will open doors with stakeholders. It might not cut through a block of cheese on a camping trip – but it will cut through the communications noise, internally and externally. And whilst you might not be able to use it to sew on a button in an emergency, it can help to thread together your social and environmental sustainability ambitions in a cohesive manner.

So how does a strategic framework manage to achieve all these things?

Let’s take a closer look at its parts.

Naming Swiss. Army. Knife. It does what it says on the tin. And

some framework names are like this too. Unilever’s Sustainable Living Plan is in this mould, although with a slight twist – it is not just the Unilever Sustainability Plan but also expresses its ambitions in regards to enabling sustainable living for consumers. Marks & Spencer’s Plan A is in the conceptual camp – memorable, but needs investment in order for people to understand what stands behind it. Elior Group’s Positive Foodprint Plan sits somewhere in between – a neat play on ‘footprint’ which fits with their sector, but also nods to their commitment to have a positive impact throughout their value chain.

Ambition A good framework needs a frame – and in this case

the ambition statement provides this overall direction for the company. It might be called a vision if it is a statement of what your company would like to achieve with some blue-sky thinking thrown in. It might be a commitment if it is an expression of what you are going to make happen. It might be an ambition if you want to leave things a little looser. These are all some of the choices that can be made during the process.

Focus areas What are the three or four areas that matter most to your

business and where you can make the biggest difference? A framework enables you to draw attention to these. One common complaint from clients is that they are not getting the recognition that they think is due for their work. A reason for this is often that they are communicating on 7, 15, 20 different things at the same volume – and there is only so much internal and external stakeholders can take in. By having 3-4 key areas, you can keep the conversation focused, and you are much more likely to get credit for your work in these areas. And a funny thing happens – because you are recognised in some key areas, there then tends to be an assumption that you are doing similarly good things in other areas of the corporate responsibility or sustainability agenda.

Big goals/commitments One of the key reasons that Unilever is viewed

as a leader is because of its big goals. ‘Double our size whilst halving our impact’ must be the most quoted sustainability goal ever. Having similar big goals or commitments gives your framework ‘teeth’. An ambition/commitment/vision is an inspiring (hopefully) set of words. The big goals or commitments provide the substance. What are you actually going to achieve? What does the end goal look like for you? You don’t need to know how you’re going to get there – but you do need to be ready to engage your organisation to unleash the innovation that’s required. We’re now only three years away from 2020, so if you’re looking at setting big goals now then it is likely to be in the 2025 or 2030 timeframe.

Targets This is where you start to get into the details, and

need to engage subject matter experts across the business. Targets should be aligned with the focus areas and big goals. They provide the milestones and the immediate focus for the organisation, and serve as a bedrock for your reporting. If you have set 2025 or 2030 big goals, targets might have a 2020 timeframe and then get reset.

Responsible operations A question that is frequently asked of us during

the development of frameworks is ‘what happens to the day-to-day operational sustainability elements such as health and safety or ethics’? It is useful to capture these in one place in a layer which might be called ‘responsible operations’ or similar. You can add in more detail as required depending on the audience that you are presenting to.

Design There are Swiss army knife imitators, but none have

reached the iconic level of the original. This is in large part due to the design. It is the same with your strategic framework. All of the thinking that has gone into getting you to this point deserves better than PowerPoint rectangles with drop shadows. Good design, in keeping with your brand, will help your audiences to ‘get it’ and enable it to become a covetable communications tool that your colleagues will want to share and use.

Sustainability ambition

Focus areas

Big goals

Specific targets and milestones


MORE THAN THE SUM OF ITS PARTS

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UNILEVER SUSTAINABLE LIVING PLAN

By 2020 we will help more than

one billion people take action to improve their

health and wellbeing

By 2020 our goal is to halve the environmental footprint of the

making and use of our products as we grow our business

By 2020 we will enhance the

livelihoods of millions of people

as we grow our business

IMPROVING HEALTH AND WELLBEING

REDUCING ENVIRONMENTAL

IMPACT

ENHANCING LIVELIHOODS

NA

ME

Double the size of our business, whilst reducing our environmental impact and increasing our

positive social impact

AM

BIT

ION

If you analyse Unilever’s model the layers look basically like this:

Unilever Sustainable Living Plan – example framework:

FO

CU

S

AR

EA

SB

IG

GO

AL

S

Targets

Operational Targets/KPIs (Internal)

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HEALTHY CHOICES

SUSTAINABLE INGREDIENTS

A CIRCULAR MODEL

THRIVING PEOPLE AND COMMUNITIES

OUR OPERATIONAL FOOTPRINT

For 100% of our guests to be able to choose healthy and delicious food by 2025

For 10 of our major ingredients to meet our Sustainable and Local Sourcing criteria by 2025

Zero food waste to landfill by 2025

• Be leaders in food hygiene and safety• Innovate and provide balanced and

healthy choices• Raise awareness of benefits of

healthy eating with guests

• Build long-term relationships with suppliers for best quality

• Develop a sustainable supply chain, with emphasis on local produce

• Reduce our environmental footprint, including working towards zero food waste

• Innovate and develop partnerships to move towards a circular model

• Share sustainability best practices with suppliers and clients

• Ensure the health and safety of our people

• Develop the skills of our people to encourage internal promotion

• Stand against discrimination• Contribute to developing local

communities

THE ELIOR GROUP

For 70% of managers to come from internal promotions, contributing to personal advancement and diversity, by 2025

Elior Group is a global catering company which caters for 4.4 million customers a day across its 23,000 restaurants. It has a big opportunity to make a positive impact, from how ingredients are sourced to the choices provided to customers. They launched their Positive Foodprint Plan in 2016.

1 Positive Foodprint Plan

The ‘Positive Foodprint Plan’ is a distinctive, memorable name. It captures the positive impact that Elior Group is committed to having throughout the value chain. ‘Foodprint’ is an idea which Elior Group can build on and own in regards to measuring both its environmental and social impacts.

EXAMPLE FRAMEWORK ELIOR GROUP POSITIVE FOODPRINT PLAN

3 Clear, measurable big goals

Each of the pillars has a clear, measurable big goal, with an end date of 2025. These are supported by easy-to-understand priority areas for each of the pillars.


2 Four externally focused pillars

Based on a materiality analysis, Elior Group’s sustainability strengths, megatrends research and the UN SDGs, Elior Group developed four externally focused pillars.

Each one aligns with one of the UN Sustainable Development Goals. Healthy Choices supports SDG3: Good health and wellbeing. Sustainable Ingredients contributes to SDG2: Zero hunger. A Circular model aligns with SDG12: Sustainable consumption and production. And Thriving People and Communities contributes to SDG 8: Decent work and economic growth.

The icons aid in creating stand-out across communications.

Big commitments brought to life with creative visuals

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SUSTAINABILITY PLAN

Our sustainability vision

Deliver for todayOn our commitments and targets

Lead the industryIn Energy and Climate Change and Sustainable Packaging and Recycling

Innovate for the futureOpportunities for innovation, collaboration and partnership

Our strategic priorities

We will deliver for today, growing a low-carbon, zero-waste business, and inspire and lead change for a more sustainable tomorrow.

CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2015 — 2016

FACTSHEET 03/32

OUR UPDATED COMMITMENTS:In 2015, we updated our targets across every one of our commitment areas. We believe these targets are feasible, but stretching – and that we can achieve the majority of them by 2020 through a continued focus on innovation, investment and collaboration. Our three priorities remain the same: Deliver for today, Inspire for tomorrow, and Lead

the industry. Below, we have outlined the key focus areas in our updated Sustainability Plan, highlighting in particular where there has been a change. These updated targets are reported against in this year’s Corporate Responsibility and Sustainability Report. You will find progress against these targets on each of the relevant factsheets, and in our data tables. Our baseline year is 2007 unless otherwise stated.

Energy and Climate ChangeWe will reduce the carbon footprint of the drink in your hand by a third by delivering carbon reductions throughout our value chain.

Target By

Carbon footprint Reduce the carbon footprint of the drink in your hand by a third

2020

Carbon footprint – core business

Grow our business, but reduce the absolute carbon footprint of our core business operations by 50 percent

2020

Manufacturing Manufacture every liter of product with 50 percent less carbon emissions

2020

Transportation Deliver a case of product with 30 percent less carbon emissions

2020

Cold drinks equipment

Reduce the carbon emissions from our cold drinks equipment by an average of 50 percent

2020

Renewable and low-carbon energy

Source 40 percent of our energy from renewable or low-carbon sources

2020

Supplier collaboration

Work in partnership with our suppliers to reduce carbon emissions across our value chain

Ongoing

Sustainable Packaging and RecyclingWe will support the development of the circular economy, use recycled and renewable materials and recycle more packaging than we use.

Target By

Lightweighting Reduce by 25 percent the amount of material we use across all packaging formats

2020

Recycled materials Include recycled aluminum, glass and steel in respective packaging formats

Ongoing

PET bottles Ensure that 40 percent of the PET we use is recycled PET and/or PET from renewable materials

2020

Recyclability Continue to ensure that 100 percent of our cans and bottles are fully recyclable

Annual

Support the development of infrastructure and technology to enable recycling of all other packaging materials

2025

Manufacturing Send zero waste to landfill from our own manufacturing operations

Annual

Recycling Recycle more packaging than we use, by championing improvements to collection schemes and supporting the recycling industry

2020

Inspiring consumers

Increase packaging recovery rates by using our brands to educate and inspire consumers to recycle more often

Ongoing

Packaging innovation

Support the wider packaging industry to explore next-generation packaging1

Ongoing

WaterWe will minimize water impacts in our value chain, establish a water sustainable operation and set the standard for water efficiency.

Target By

Protect Protect the future sustainability of the water sources we use and safely return to nature 100 percent of the wastewater from our manufacturing operations

2020

Reduce Reduce the amount of water we use, aiming to manufacture every liter of product using an average 1.2 liters of water

2020

Replenish Return to nature the water used in our beverages, where it is sourced from areas of water stress by investing in community-based water programs1

2020

Value chain Minimize water impacts in our value chain through our sustainable sourcing programs

2020

Sustainable SourcingWe will sustainably source 100 percent of our key agricultural ingredients.

Target By

Key agricultural ingredients

Sustainably source 100 percent of our key agricultural ingredients1

2020

WellbeingWe will play our part to promote wellbeing by reducing calories across our portfolio by 10 percent and enabling three million people to be active.

Target By

Choice – calorie reduction

Reduce calories per liter across our product portfolio by 10 percent1, 2

2020

Choice – availability

Offer a no- or low-calorie alternative whenever regular soft drinks are available

Ongoing

Choice – portion size

Ensure that all soft drinks are available in small portion size choices, and increase the availability of small packs

Ongoing

Nutritional information

Ensure clear nutritional labeling on front of pack across all our products1

Ongoing

Responsible marketing

Not market any of our products to children under 12 and not sell our products in primary schools1

Ongoing

Active lifestyles Enable three million people to be physically active by investing in grassroots programs which support active lifestyles1

Ongoing

CommunityWe will make a positive difference in our communities, work with local partners and support the active involvement of our employees.

Target By

Social investment Invest 1 percent of our annual pre-tax profit to support charitable and community partners and make a positive difference in the communities in which we operate

Annual

Employee volunteering

Support the active involvement of our employees by encouraging them to volunteer

Ongoing

Supporting young people

Support the skills development and learning needs of 250,000 young people each year

2020

WorkplaceWe will attract, develop and motivate a highly talented and diverse workforce within a safe and healthy workplace.

Target By

Employee wellbeing

Encourage participation in our employee wellbeing programs so that at least 50 percent of our employees take part

2020

Workplace safety Provide a safe and healthy work environment with a vision of achieving zero accidents and attaining world-class health and safety status

2020

Workplace diversity Attract, develop and motivate a highly talented and diverse workforce

Ongoing

Aspire to have a minimum 40 percent of women in both management and leadership grades

2025

1 In partnership with The Coca-Cola Company.2 Against a 2010 baseline.

CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2015 — 2016

FACTSHEET 03/32

OUR UPDATED COMMITMENTS:In 2015, we updated our targets across every one of our commitment areas. We believe these targets are feasible, but stretching – and that we can achieve the majority of them by 2020 through a continued focus on innovation, investment and collaboration. Our three priorities remain the same: Deliver for today, Inspire for tomorrow, and Lead

the industry. Below, we have outlined the key focus areas in our updated Sustainability Plan, highlighting in particular where there has been a change. These updated targets are reported against in this year’s Corporate Responsibility and Sustainability Report. You will find progress against these targets on each of the relevant factsheets, and in our data tables. Our baseline year is 2007 unless otherwise stated.

Energy and Climate ChangeWe will reduce the carbon footprint of the drink in your hand by a third by delivering carbon reductions throughout our value chain.

Target By

Carbon footprint Reduce the carbon footprint of the drink in your hand by a third

2020

Carbon footprint – core business

Grow our business, but reduce the absolute carbon footprint of our core business operations by 50 percent

2020

Manufacturing Manufacture every liter of product with 50 percent less carbon emissions

2020

Transportation Deliver a case of product with 30 percent less carbon emissions

2020

Cold drinks equipment

Reduce the carbon emissions from our cold drinks equipment by an average of 50 percent

2020

Renewable and low-carbon energy

Source 40 percent of our energy from renewable or low-carbon sources

2020

Supplier collaboration

Work in partnership with our suppliers to reduce carbon emissions across our value chain

Ongoing

Sustainable Packaging and RecyclingWe will support the development of the circular economy, use recycled and renewable materials and recycle more packaging than we use.

Target By

Lightweighting Reduce by 25 percent the amount of material we use across all packaging formats

2020

Recycled materials Include recycled aluminum, glass and steel in respective packaging formats

Ongoing

PET bottles Ensure that 40 percent of the PET we use is recycled PET and/or PET from renewable materials

2020

Recyclability Continue to ensure that 100 percent of our cans and bottles are fully recyclable

Annual

Support the development of infrastructure and technology to enable recycling of all other packaging materials

2025

Manufacturing Send zero waste to landfill from our own manufacturing operations

Annual

Recycling Recycle more packaging than we use, by championing improvements to collection schemes and supporting the recycling industry

2020

Inspiring consumers

Increase packaging recovery rates by using our brands to educate and inspire consumers to recycle more often

Ongoing

Packaging innovation

Support the wider packaging industry to explore next-generation packaging1

Ongoing

WaterWe will minimize water impacts in our value chain, establish a water sustainable operation and set the standard for water efficiency.

Target By

Protect Protect the future sustainability of the water sources we use and safely return to nature 100 percent of the wastewater from our manufacturing operations

2020

Reduce Reduce the amount of water we use, aiming to manufacture every liter of product using an average 1.2 liters of water

2020

Replenish Return to nature the water used in our beverages, where it is sourced from areas of water stress by investing in community-based water programs1

2020

Value chain Minimize water impacts in our value chain through our sustainable sourcing programs

2020

Sustainable SourcingWe will sustainably source 100 percent of our key agricultural ingredients.

Target By

Key agricultural ingredients

Sustainably source 100 percent of our key agricultural ingredients1

2020

WellbeingWe will play our part to promote wellbeing by reducing calories across our portfolio by 10 percent and enabling three million people to be active.

Target By

Choice – calorie reduction

Reduce calories per liter across our product portfolio by 10 percent1, 2

2020

Choice – availability

Offer a no- or low-calorie alternative whenever regular soft drinks are available

Ongoing

Choice – portion size

Ensure that all soft drinks are available in small portion size choices, and increase the availability of small packs

Ongoing

Nutritional information

Ensure clear nutritional labeling on front of pack across all our products1

Ongoing

Responsible marketing

Not market any of our products to children under 12 and not sell our products in primary schools1

Ongoing

Active lifestyles Enable three million people to be physically active by investing in grassroots programs which support active lifestyles1

Ongoing

CommunityWe will make a positive difference in our communities, work with local partners and support the active involvement of our employees.

Target By

Social investment Invest 1 percent of our annual pre-tax profit to support charitable and community partners and make a positive difference in the communities in which we operate

Annual

Employee volunteering

Support the active involvement of our employees by encouraging them to volunteer

Ongoing

Supporting young people

Support the skills development and learning needs of 250,000 young people each year

2020

WorkplaceWe will attract, develop and motivate a highly talented and diverse workforce within a safe and healthy workplace.

Target By

Employee wellbeing

Encourage participation in our employee wellbeing programs so that at least 50 percent of our employees take part

2020

Workplace safety Provide a safe and healthy work environment with a vision of achieving zero accidents and attaining world-class health and safety status

2020

Workplace diversity Attract, develop and motivate a highly talented and diverse workforce

Ongoing

Aspire to have a minimum 40 percent of women in both management and leadership grades

2025

1 In partnership with The Coca-Cola Company.2 Against a 2010 baseline.

1 This framework is now quite old, set in 2011 and now being changed as the business has grown and merged. But it is a great example of the various moving parts of a framework and also proves that if you get it right, it can really work and drive change.

5 Energy and Climate Change is one of Coca-Cola Enterprises priority focus areas.

The targets are worded in a way to make them as tangible as possible. For example – ‘We will reduce the carbon footprint of the drink in your hand by a third’ which paints a more visual picture rather than just saying ‘We will reduce our carbon footprint by a third’.

4 In 2014, Coca-Cola Enterprises undertook a review of its progress and listened to feedback from stakeholders. As a result, the underlying targets were updated, whilst the top-level framework, shown here, remained the same.

Coca-Cola Enterprises (now Coca-Cola European Partners) is the largest European bottler of Coca-Cola drinks.

EXAMPLE FRAMEWORK COCA-COLA ENTERPRISES SUSTAINABILITY PLAN

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2 The framework included a clear vision and three strategic priorities. The strategic priorities captured the commitment of the business to deliver across all its focus areas and to lead in two particular areas. Importantly, it also allowed space to ‘innovate for the future’, opening up doors for innovation, collaboration and partnership.

3 Sustainable Packaging and Recycling

Coca-Cola Enterprises has eight focus areas but has two clear priority focus areas in which it has committed to lead the industry. Sustainable Packaging and Recycling is one of these priority focus areas.

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—— ACHIEVING OUR VISIONOur vision is to make beauty sustainable, and to make sustainability beautiful. Across our value chain, we are committed to improving the way we do business, from research to operations, from marketing to communication with the consumer. At the same time, we will share our growth with our suppliers, our employees and communities around us.

OUR SUSTAINABILITY VISION

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—— EXTERNAL AND INTERNAL VIEWPOINTSWe have spent more than two years exploring in depth our environmental and social impacts in detail. We set up a materiality analysis with our internal experts. We then invited feedback through stakeholder forums in the US, South Africa, India, Brazil, China and Northern Europe. We contacted

CO-CREATING OUR COMMITMENTS

more than 630 external organisations (NGOs, associations, experts), and met with more than 250 of them to discuss our sustainability challenges and their expectations from a Group like us. Our targets are the result of this consultation and co-creation with internal and external stakeholders.

PRODUCING SUSTAINABLY

LESS & MORE

INNOVATING SUSTAINABLY

DESIGN & SOURCING

PEOPLE & PARTNERS

DEVELOPING SUSTAINABLY

LIVING SUSTAINABLY

INFORM & EMPOWER

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COMMITMENTS

To make sure we deliver against our vision, we have created a framework with four clear commitments, which will help us to measure our progress. These commitments are supported by targets.

COMMITMENTS AND TARGETS

INNOVATING SUSTAINABLY

PRODUCING SUSTAINABLY

LIVING SUSTAINABLY

By 2020, we will innovate so that 100% of products have an environmental or social benefit.

Every time we invent or update a product, we will improve its environmental or social profile against at least one of the following criteria:

• The new formula reduces the environmental footprint.

• The new formula uses renewable raw materials that are sustainably sourced or raw materials derived from Green chemistry.

• The new packaging has an improved environmental profile.

• The new product has a positive social impact.

By 2020, we will reduce our environmental footprint by 60% from a 2005 baseline whilst bringing beauty to one billion new consumers.

• We will reduce CO2 emissions at our plants and distribution centres by 60% in absolute terms, from a 2005 baseline.

• We will reduce our water consumption by 60% per finished product unit, from a 2005 baseline.

• We will reduce waste by 60% per finished product unit, from a 2005 baseline.

• We will send zero waste to landfill.

• We will reduce our CO2 emissions from transportation of products by 20% per finished product unit from a 2011 baseline.

By 2020, we will empower every L’Oréal consumer to make sustainable consumption choices while enhancing the beauty of the planet.

• We will use a product assessment tool to evaluate the environmental and social profile of 100% of new products, and all brands will make this information available to allow consumers to make sustainable lifestyle choices.

• All L’Oréal brands will assess where they have the biggest environmental and social impact, and make commitments to improve their footprint. Every brand will report on its progress and raise awareness among consumers about sustainable lifestyle choices.

• Our consumers will be able to influence our sustainability actions through our consumer sustainability panel.

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DEVELOPING SUSTAINABLYEMPLOYEES SUPPLIERS COMMUNITIES

By 2020, L’Oréal employees will have access to health care, social protection and training, wherever they are in the world.

• We will provide health coverage for employees which is aligned with the best practice of the country they are based in.

• We will provide financial protection for all employees if unexpected life events such as incapacity or permanent disability occur.

• Every L’Oréal employee will have access to at least one training session per year wherever they are in the world.

By 2020, 100% of our strategic suppliers will be participating in our supplier sustainability programme.

• All strategic suppliers will be evaluated and selected on social and environmental performance.

• All strategic suppliers will have completed a self-assessment of their sustainability policy with our support.

• All suppliers will have access to L’Oréal training tools to improve their sustainability policies.

• 20% of strategic suppliers will be associated with our Solidarity sourcing programme.

By 2020, we will enable more than 100,000 people from underprivileged communities, equivalent to the size of our global workforce, to access work.

We will achieve our goal through programmes in the following areas.

• Solidarity sourcing.

• Inclusive distribution.

• Beauty professionalisation.

• Mentoring and community education.

• Employment of disabled people and under-represented socioethnic groups.


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L’Oréal’s ‘Sharing Beauty with All’ sustainability framework is one of the most distinctive in terms of its framing – placing sustainability firmly in the context of the industry, with an aesthetic to match.

1 The structure of L’Oréal’s framework is to have an inspiring vision, supported by measurable commitments in four focus areas.

2 The four key focus areas for L’Oréal are captured in an elegant ‘flower’ diagram.

3 L’Oréal has framed concrete 2020 commitments in each of its four focus areas.

These are the targets as published at launch in 2013 and they have been updated since then.

EXAMPLE FRAMEWORK L’ OREAL SHARING BEAUTY WITH ALL

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Printed by CPI Colour. CPI Colour is CarbonNeutral® and FSC® chain of custody certified.

Printed on UPM Offset, an FSC® Mix grade paper.

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