The Estée Lauder Companies (ELC) has achieved its goal of reaching Net Zero carbon emissions and sourcing 100% renewable electricity, sourced globally for its direct operations. It has also met its science-based emissions targets for direct operations and value chain.
The beauty giant set the ambitious climate targets when it joined the RE100 in 2017. The RE100 is a global corporate renewable energy initiative by the Climate Group, which encourages companies to commit to 100% renewable electricity.
To reach this climate milestone, The Estée Lauder Companies significantly reduced its carbon footprint by investing in high-quality sustainable solutions and additional renewable energy projects.
As reported, the company expanded its renewable energy portfolio by signing a Virtual Power Purchase Agreement (VPPA) for 22 megawatts (MW) of wind power from the Ponderosa wind farm in Oklahoma. The agreement — the company’s largest renewable energy deal to date — covers over 50% of ELC’s renewable electricity footprint.
In addition, The Estée Lauder Companies installed ground-mount and on-site rooftop solar arrays in its facilities. It has also produced renewable energy certificates (RECs) to support local renewable energy operations in markets where it has a smaller carbon footprint.
It also purchased carbon offsets from the Massachusetts Tri-City Forestry project to address any remaining annual carbon emissions. The Tri-City project protects 65,000 acres of public forestland in North America from commercial timber harvesting.
“Today’s announcement signals a new level of ambition and dedication to climate action for The Estée Lauder Companies,” commented The Estée Lauder Companies President and Chief Executive Officer Fabrizio Freda. “Setting ambitious targets in line with the latest climate science is testament to our values and commitment to managing our business for the long term. In this decisive decade for climate action, we will continue to accelerate efforts to ensure a healthy, beautiful planet for generations to come.”
“We congratulate The Estée Lauder Companies on their fantastic work to switch to renewable electricity globally,” added The Climate Group Chief Executive Officer Helen Clarkson. “When large companies like The Estée Lauder Companies set their sights on an ambitious target, they can achieve huge change at a rapid pace. This is exactly the sort of leadership we need to see in the climate decade, as we work to halve global emissions.”
Building on its achievement, The Estée Lauder Companies has set new climate targets for the new decade. These new targets are independently approved by the Science Based Target initiative (SBTI)
The Estée Lauder Companies has committed to reduce scope 1 and 2 greenhouse gas emissions by 50% in 2030. This target is consistent with reductions required to keep global warming to 1.5°C, based on the Paris Agreement. Scope 1 covers direct emissions from controlled sources and while scope 2 cover indirect emissions from purchased electricity, steam and heating.
It has also committed to reducing scope 3 greenhouse gas emissions from purchased goods and services, transportation, distribution and business travel by 60% per unit revenue by 2030. This target meets SBTI’s value chain goals and are in-line with best climate practices.
Through these goals, the company aims to address carbon impacts beyond its direct operations and build on the success of achieving Net Zero and RE100 this year.
The Estée Lauder Companies Senior Vice President Global Corporate Citizenship and Sustainability Nancy Mahon said, “The Estée Lauder Companies has been deeply committed to climate action for many years and, in 2020, we not only stayed true to our commitments, but took steps to further accelerate progress. At such a critical time for our planet and communities around the world, we know this work is more important than ever.
“The events of this year have only underscored the urgency and imperative of climate action and we’re committed to doing our part, collaborating with partners to tackle one of the greatest challenges of our time.”
