Coty Sustainability Report 2021

Beauty that lasts

Coty’s sustainability strategy, Beauty That Lasts, is their path to delivering a more sustainable and inclusive world. Launched in February 2020 as a way of delivering on the strategic goal of becoming an industry leader in sustainability, it’s structured around three pillars: Product, Planet and People. This executive summary outlines Coty’s progress towards their targets set and shares their plans for the year ahead.

Total energy reduction compared to the new baseline of 2019 for the same scope was 10%. All factories and distribution centers are now using renewable electricity.

Coty is now doing monthly reporting on greenhouse gas emissions linked to its owned downstream transportation. Compared to the new baseline of 2019, they achieved 23% reduction in market-based Scope 1 and 2 greenhouse gas emissions.

Coty leverages Green Science and its three pillars (Green Chemistry, Biotechnology & Biomimicry and Green Extraction) to change the way they design, formulate and manufacture to create more innovative, cleaner products. One example is using green extraction to extract natural origin ingredients.

Coty’s Clean program responds to consumers’ and retailers’ desires to choose products for the presence or absence of certain ingredients. They have developed an internal Clean list that goes beyond authorities' requirements and some of their main competitors to determine controversial ingredients and align with their main retailers.

Sustainability criteria are now included in the conception of all Coty’s new products.

Since 2020, Coty has deployed the SPICE Life Cycle Assessment Tool for embedding sustainability into the packaging design process. They are reducing packaging weight, exploring opportunities for reuse with at-home or in-store refills, increasing the amount of recycled materials in packaging and designing for recyclability.

Repacked their popular CoverGirl Clean Pressed Powder so the product now uses 35% less plastic for the same consumer value.

In FY21 Coty relaunched the Lancaster Sun Sensitive range with new clean and ocean-friendly formulas.

Target goal to purchase 100% mass balance-certified palm oil for their production sites by 2022 and third-party manufacturers by 2025.

Established a comprehensive Responsible Sourcing Framework that covers every element that is relevant to their external business partners and buyers to shape their procurement processes across the entirety of Coty’s business.

All of their factories and distribution centers are powered by renewable electricity. In total, over 57% of their energy consumption comes from renewable sourcing.

Their Senador Canedo factory partnered with Polpel to develop a recycling methodology for label release liners. After training their team to collect and recycle this label backing paper, they achieved a 94% recycling rate.

Coty established a pioneering new partnership with LanzaTech that enables them to transform carbon emissions into sustainable high-purity ethanol for fragrances – the ultimate upcycling.

< 0.5%

of factories and distribution centers’ waste was sent to landfills

> 74%

of waste was either reused, recycled or composted

Our consumers are demanding cleaner, greener products, which gives my function a clear mandate to use science to unlock sustainable business growth.

Thierry Molière

SVP Sustainability, Technology & Innovation

Coty has made sustainability one of the six pillars of their long-term strategy. Their 2021 report outlines efforts taken towards developing clean products that meet a growing consumer demand for ingredient transparency and minimalist safe formulas — all without compromising on product quality. This strategy (and the steps they’ve taken) not only helps their environmental impact, but their competitive position in the market, too.

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> 10%

reduction in total energy consumption

100%

of Indian mica is sourced from suppliers who are members of the Responsible Mica Initiative

My vision for Coty is a purpose driven company that reflects the communities we are part of, celebrating all the expressions of beauty that exist and will exist.

Sue Nabi

Chief Executive Officer