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  • Overall approach
    5/16
    • Overarching commitment on deforestation
      4/6
      Deforestation commitment
      Zero-deforestation
      4/6
      Commodities (if applicable): 0
      "ELC expects supplier sourcing of raw materials to meet the following criteria*: No Deforestation: No deforestation, which includes the conversion of natural forests and high conservation value forests to agriculture, tree plantations, or other land uses, or severe human-induced degradation; Commitment to long-term protection of natural forests. No Conversion: No conversion, which includes conversion of non-forested natural ecosystems or peatlands to agriculture, tree plantations, or other land uses, or severe human-induced degradation; Commitment to long-term protection and conservation of natural ecosystems."
    • Signatory to an initiative tackling deforestation
      0/1
    • Awareness of the value of forests
      1/1
      Awareness
      Yes
      1/1
      Estée Lauder Companies Inc. and its subsidiaries (ELC) show an awareness of the importance of protecting forests when they state "Increasing demand for palm oil has had measurable environmental and social impacts, including deforestation, habitat destruction and biodiversity loss".
    • Deforestation as a business risk
      0/1
    • High-level management of deforestion
      0/1
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      0/3
    • Reporting on emissions from land-use change
      0/3
    • Disclosure of conservation activity
    • Disclosure of reforestation activity
  • Commodity score
    26/84
    • Palm oil
      41/84
      • Commitment Strength
        21/28
        • Commitment to protect priority forests
          11/12
          • Commitment details
            Zero-gross conversion
            8/8
            Commitment to protect priority forests
            Zero-gross conversion
            8/8
            Which certification schemes are used?: RSPO
            "At least 90% of our palm-based ingredients(palm oil and its derivatives) will becertified sustainable from RSPO physicalsupply chains by 2025, with 50% palm-basedingredients certified sustainable from RSPOphysical supply chains by 2020."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "At least 90% of our palm-based ingredients(palm oil and its derivatives) will becertified sustainable from RSPO physicalsupply chains by 2025, with 50% palm-basedingredients certified sustainable from RSPOphysical supply chains by 2020."
          • Target date
            2025
            0.5/1.3
            Target date
            2025
            0.5/1.3
            What actions or steps are identified for time-bound implementation?: "To meet this commitment, we will continue to support substitution of existing palm kernel oil derivative ingredients with RSPO-certified Mass Balance alternatives by partnering with strategic suppliers on ourpalm oil sourcing policy." https://rspo.org/members/3655/The-Estee-Lauder-Companies-Inc
            "At least 90% of our palm-based ingredients(palm oil and its derivatives) will becertified sustainable from RSPO physicalsupply chains by 2025, with 50% palm-basedingredients certified sustainable from RSPOphysical supply chains by 2020."
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            What date is given for the interim milestone(s)?: 2020
            "At least 90% of our palm-based ingredients (palm oil and its derivatives) will becertified sustainable from RSPO physical supply chains by 2025, with 50% palm-basedingredients certified sustainable from RSPO physical supply chains by 2020. 50% palm-based ingredients certified sustainable from RSPO physical supply chains by 2020." However, " Formulas manufactured by Third-Party Manufacturers (TPMs) are currently excluded."
        • Commitment to protect High Carbon Stock areas and/or peatlands
          5/8
          • Commitment details
            Yes
            4/4
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            4/4
            Type of commitment: HCS; Peat
            Estée Lauder Companies Inc. and its subsidiaries (ELC) state - "As a result of our ongoing commitment to support sustainable palm oil sourcing, we have developed the following enhanced actions and goals for our Company: We have adopted a no deforestation policy, which requires our high-volume suppliers to ensure that they prohibit new clearing or palm development on High Carbon Stock (HCS), High Conservation Value (HCV) forests and peat lands* or the use of fire for the preparation of new planting or replanting."
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            Current/2020/Pre-2020
            1.3/1.3
            Target date
            Current/2020/Pre-2020
            1.3/1.3
            Estée Lauder Companies Inc. and its subsidiaries (ELC) state - "As a result of our ongoing commitment to support sustainable palm oil sourcing, we have developed the following enhanced actions and goals for our Company: We have adopted a no deforestation policy, which requires our high-volume suppliers to ensure that they prohibit new clearing or palm development on High Carbon Stock (HCS), High Conservation Value (HCV) forests and peat lands* or the use of fire for the preparation of new planting or replanting.
          • Interim target date
            No
            0/0.7
        • Commitment to a traceable supply chain
          4/8
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            EL State in their 2015 report that - "We continue to collaborate with our suppliers and fellow members of the Natural Resources Stewardship Circle (NRSC) and have forged a new partnership with an NGO to enhance traceability in our palm oil sourcing. Focused on high-volume suppliers, which represent approximately 80 percent of ELC’s annual sourcing, we are beginning to map our supply chain with the aim of tracing source materials back to plantations and growers"
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
            Commitment applies to all regions, suppliers and operation
            No
            0/2
            "Focused on high-volume suppliers, which represent approximately 80 percent of ELC�s annual sourcing, we are beginning to map our supply chain with the aim of tracing source materials back to plantations and growers."
          • Target date
            No target date
            0/1.3
          • Interim target date
            No
            0/0.7
      • Social Considerations
        7/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: UN Declaration for HR; Discrimination; Forced Labour; Child Labour; Freedom of association
          Palm oil policy states that "We require the suppliers we engage to commit to our Supplier Code of Conduct principles as a basic requirement of doing business together. This requirement ensures that all suppliers respect human rights, the rights of indigenous peoples and local communities, as well as workers’ rights in all operations." Supplier Code of Conduct states that "ELC Suppliers must not employ child labor [...] must not use or benefit from any form of human trafficking, or forced or compulsory labor of any kind [...] must strive to promote an environment that is free from discrimination [...] must recognize the right of employees to freely associate".
        • Inclusion of small-scale farmers
          No
          0/4
          Inclusion of small-scale farmers
          No
          0/4
          What is the nature of that support?: Technical assistance/support; Education and training

          How many smallholders do they support, and what percentage does this represent in terms of their sourcing from smallholders?: 1000
          "In fiscal 2019, we announced a three-year partnership with chemical giant BASF,RSPO and the NGO Solidaridad to work with smallholder Indonesian palm oil farmers(farmers who own or cultivate farms that are less than 2.0 hectares of land) [...] The project launched in Lampung, Indonesia, and targets 1,000 independent Indonesia smallholder farmers. The project supports farmers to improve their livelihoods and their sustainable production of palm oil and palm kernel oil by offering continuous education and technical assistance on how to implement and maintain sustainable palm oil practices. The project’s goal is that a minimum of one-third of the supported smallholderfarmers become certified according to the Smallholder Standard of RSPO at theend of three years."
        • Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          States in the Supplier Code of Conduct that "Any employment decisions must be based on worker’s ability and not on personal characteristics such as [...] gender [or ...] gender identity or expression" .
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          "Any use or transfer of land should be subject to the application of theprinciples of Free, Prior and Informed Consent." This statement is listed under 'Basic Practices' in the Supplier Code of Conduct Guidelines.
      • Reporting and Implementation
        14/38
        • Reporting against commitments
          4/6
          • Commitment to protect priority forests
            Yes
            2/2
            Commitment to protect priority forests
            Yes
            2/2
            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No
            "47% of our palm-based ingredients were certified sustainablefrom RSPO physical supply chains in calendar year 2018."
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            2/2
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            2/2
            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: Yes
            Reported on within their 2019 ACOP report
          • Commitment to a traceable supply chain
            No
            0/2
        • Reporting is independently verified
          3/4
          • Commitment to protect priority forests
            Yes: third-party
            1.3/1.3
            Commitment to protect priority forests
            Yes: third-party
            1.3/1.3
            Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO

            Which processes or groups does the company use for third party verification?: RSPO
            "47% of our palm-based ingredients were certified sustainablefrom RSPO physical supply chains in calendar year 2018."
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes: third-party
            1.3/1.3
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes: third-party
            1.3/1.3
            Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO Certification

            Which processes or groups does the company use for third party verification?: RSPO Certification
            Reported on within their 2019 ACOP report
          • Commitment to a traceable supply chain
            No
            0/1.3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What initiatives does the company participate in?: Working with the Indonesian Government

          What is the nature of that participation?: Attending & contributing to meetings
          "We are proud to be collaborating with our partners and the Indonesian government to foster this sustainable palm oil production supply chain in Lampung, one that is free from deforestation and still competitive in the global market, while at the same time increasing the social and economic benefits for farmers."
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          What is the compliant volume?: 4577.5 tons

          What is the certified volume?: 4577.5 tons

          Which certification schemes are used?: RSPO

          What is the non-certified/non-compliant volume?: 0 tons

          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 100%
          The 2019 APOC report indicates that all of the palm oil used by the company in 2019 was RSPO certified.
        • Downstream: Publishing supplier lists
          No disclosure
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes for its suppliers only
          3/4
          Downstream: Monitor compliance in supply chain
          Yes for its suppliers only
          3/4
          Details of monitoring: Using internal monitoring and verification systems

          What percentage of the company's supply chain volume does that represent?: 100%

          How frequently is compliance assessed?: Bi-Annually
          EL uses a combination of internal compliance monitoring and third party for it's supply chain. "All new suppliers must agree to comply with our Supplier Code of Conduct before they are awarded our business. The Company requires its high-risk suppliers to undergo an audit conducted by an independent, third-party auditor at least every two years. [...] In addition to requiring our suppliers to comply with our Supplier Code of Conduct, the Company has used certification programmes, providing third-party verification that certain raw materials we purchase are produced without the use of forced labour, including the Roundtable on Sustainable Palm Oil (RSPO) and the Forest Stewardship Council (FSC)".
        • Downstream: Engagement with non-compliant suppliers
          Engage with suppliers with a time-bound threat of exclusion
          2/2
          Downstream: Engagement with non-compliant suppliers
          Engage with suppliers with a time-bound threat of exclusion
          2/2
          What criteria does the policy specify for blacklisting or exclusion?: not disclosed

          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No

          What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: "implementation of a corrective action plan that would need to be implemented within a certain fixed time period".
          "If non-compliance is discovered, then the remedies may include, among other things, termination of business with The Estée Lauder Companies or the development and implementation of a corrective action plan that would need to be implemented within a certain fixed time period. The Estée Lauder Companies may follow such implementation by an audit, as it deems appropriate."
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
    • Pulp & Paper
      19/84
      • Commitment Strength
        11/28
        • Commitment to protect priority forests
          7/12
          • Commitment details
            Zero-gross deforestation
            6/8
            Commitment to protect priority forests
            Zero-gross deforestation
            6/8
            Which certification schemes are used?: FSC
            "Our ambition is to use responsibly sourced paper products whenever possible with a goal to have 100% of our forest-based fiber cartons FSC certified by 2025."
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
            Commitment applies to all regions, suppliers and operation
            No
            0/2
            If no, what is excluded?: Product line
          • Target date
            2025
            0.5/1.3
            Target date
            2025
            0.5/1.3
            EL call out fiber cartons specifically - "Our ambition is to use responsibly-sourced paper products whenever possible with a goal to have 100% of our forest-based fiber cartons FSC certified by 2025."
          • Interim target date
            No
            0/0.7
        • Commitment to reduce use of virgin wood fibre
          5/8
          • Commitment details
            Yes
            4/4
            Commitment to reduce use of virgin wood fibre
            Yes
            4/4
            Type of commitment: Recycled content
            "By 2025, 75-100% of our packaging will be recyclable, refillable, reusable, recycled or recoverable. In achieving this goal, we will increase the amount of post-consumer recycled material in our packaging by up to 50%."
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            2025
            0.5/1.3
            Target date
            2025
            0.5/1.3
            "By 2025, 75-100% of our packaging will be recyclable, refillable, reusable, recycled or recoverable. In achieving this goal, we will increase the amount of post-consumer recycled material in our packaging by up to 50%."
          • Interim target date
            No
            0/0.7
        • Commitment to a traceable supply chain
          0/8
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1.3
          • Interim target date
            No
            0/0.7
      • Social Considerations
        7/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: UN Declaration for HR
          Supplier Code of Conduct states that "ELC Suppliers must not employ child labor [...] must not use or benefit from any form of human trafficking, or forced or compulsory labor of any kind [...] must strive to promote an environment that is free from discrimination [...] must recognize the right of employees to freely associate".
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          States in the Supplier Code of Conduct that "Any employment decisions must be based on worker’s ability and not on personal characteristics such as [...] gender [or ...] gender identity or expression"
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          "Any use or transfer of land should be subject to the application of theprinciples of Free, Prior and Informed Consent." This statement is listed under 'Basic Practices' in the Supplier Code of Conduct Guidelines.
      • Reporting and Implementation
        1/38
        • Reporting against commitments
          0/6
          • Commitment to protect priority forests
            No
            0/2
          • Commitment to reduce use of virgin wood fibre
            No
            0/2
          • Commitment to a traceable supply chain
            No
            0/2
        • Reporting is independently verified
          0/4
          • Commitment to protect priority forests
            No
            0/1.3
          • Commitment to reduce use of virgin wood fibre
            No
            0/1.3
          • Commitment to a traceable supply chain
            No
            0/1.3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          No reporting
          0/4
        • Downstream: Publishing supplier lists
          No disclosure
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes for its suppliers only
          3/4
          Downstream: Monitor compliance in supply chain
          Yes for its suppliers only
          3/4
          What percentage of the company's supply chain volume does that represent?: 100%

          Details of monitoring: Using certification; Using internal monitoring and verification systems

          How frequently is compliance assessed?: At least every two years
          EL uses a combination of internal compliance monitoring and third party for it's supply chain. "All new suppliers must agree to comply with our Supplier Code of Conduct before they are awarded our business. The Company requires its high-risk suppliers to undergo an audit conducted by an independent, third-party auditor at least every two years. [...] In addition to requiring our suppliers to comply with our Supplier Code of Conduct, the Company has used certification programmes, providing third-party verification that certain raw materials we purchase are produced without the use of forced labour, including the Roundtable on Sustainable Palm Oil (RSPO) and the Forest Stewardship Council (FSC)".
        • Downstream: Engagement with non-compliant suppliers
          Engage with suppliers with a time-bound threat of exclusion
          2/2
          Downstream: Engagement with non-compliant suppliers
          Engage with suppliers with a time-bound threat of exclusion
          2/2
          What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: "implementation of a corrective action plan that would need to be implemented within a certain fixed time period".

          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
          "If non-compliance is discovered, then the remedies may include, among other things, termination of business with The Estée Lauder Companies or the development and implementation of a corrective action plan that would need to be implemented within a certain fixed time period. The Estée Lauder Companies may follow such implementation by an audit, as it deems appropriate."
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
    • Soy *
      7/84
      • Commitment Strength
        0/28
        • Commitment to protect priority forests
          0/17
          • Commitment details
            No commitment
            0/10.7
            Commitment to protect priority forests
            No commitment
            0/10.7
            (For downstream soy companies only) Does the company commitment also apply to hidden/indirect soy?: Supply chain includes no indirect soy
          • Commitment applies to all regions, suppliers and operation
            No
            0/3
          • Target date
            No target date
            0/2
          • Interim target date
            No
            0/1
        • Commitment to a traceable supply chain
          0/11
          • Commitment details
            No traceability commitment
            0/5.3
          • Commitment applies to all regions, suppliers and operation
            No
            0/3
          • Target date
            No target date
            0/2
          • Interim target date
            No
            0/1
      • Social Considerations
        7/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: UNGP; Discrimination; Forced Labour; Child Labour; Freedom of association
          Supplier Code of Conduct states that "ELC Suppliers must not employ child labor [...] must not use or benefit from any form of human trafficking, or forced or compulsory labor of any kind [...] must strive to promote an environment that is free from discrimination [...] must recognize the right of employees to freely associate"
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          States in the Supplier Code of Conduct that "Any employment decisions must be based on worker’s ability and not on personal characteristics such as [...] gender [or ...] gender identity or expression"
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          "Any use or transfer of land should be subject to the application of the principles of Free, Prior and Informed Consent." This statement is listed under 'Basic Practices' in the Supplier Code of Conduct Guidelines.
      • Reporting and Implementation
        0/38
        • Reporting against commitments
          0/6
          • Commitment to protect priority forests
            No
            0/3
          • Commitment to a traceable supply chain
            No
            0/3
        • Reporting is independently verified
          0/4
          • Commitment to protect priority forests
            No
            0/2
          • Commitment to a traceable supply chain
            No
            0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          No reporting
          0/4
        • Downstream: Publishing supplier lists
          No disclosure
          0/4
        • Downstream: Monitor compliance in supply chain
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          No engagement or exclusion
          0/2
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
  • * commodity scores for which a company is not a powerbroker are given half the weighting of other commodities in total scores

  • Commitment strength
    13/28
    Avg. score
  • Reporting and Implementation
    6/38
    Avg. score
  • Social considerations
    7/18
    Avg. score

Profile

Estée Lauder is an American cosmetics company with products sold in 50 countries around the world. Products include skin care, hair care, makeup, and fragrances with well-known brands including Aveda, Jo Malone, and Estée Lauder itself. Esteé Lauder Companies Inc. is selected as a powerbroker for palm oil and paper packaging and is also assessed for its exposure to soy.

Sector
Industry sector 
Cosmetics & personal care, Personal care
Segments
Manufacturer
HQ
HQ 
United States
Company Type
Company type 
Public listed
Collective Commitments
Consumer Goods Forum member
New York Declaration on Forests signatory

Top Brands

Aerin, Aramis, Aveda, Becca, Bobbi Brown, Bumble and bumble, Clinique, Darphin, DKNY, Donna Karan, Frederic Malle, Ermenegildo Zegna, Estee Lauder, Glamglow, Jo Malone, Kilian Paris, Kiton, Lamer, Lab Series, Le labo, Mac, Michael Kors, Origins, Rodin, Smashbox, Tom Ford beauty, Tommy Hilfiger, Too Faced, Tory Burch

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.