Estée Lauder Companies Inc.

NDPE 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 "The Supplier Code is based on internationally recognized standards, including the Universal Declaration of Human Rights and International Labor Organization’s Conventions.  [...] 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"

"We remain committed to acting responsibly and will continue to work with our suppliers, industry partners and other like-minded organisations to find the best ways to encourage and support the development of sustainable palm oil production, as well as support palm oil smallholder farmers through initiatives such as Project Lampung and by purchasing Independent Smallholder Credits from RSPO."

"ELC Suppliers must strive to promote an environment that is free from discrimination and inclusive of all people and their unique abilities, strengths and differences. ELC Suppliers must provide equal opportunities, in all aspects of employment and must not subject their workers to any illegal discrimination with regard to recruitment, hiring, remuneration, promotion, access to training, professional development, retirement or termination. Any employment decisions must be based on worker’s ability and not on personal characteristics such as race, creed, color, religion, gender, sex, age, national origin, alienage or citizenship status, sexual orientation, gender identity or expression"

"ELC Suppliers must meet all requirements of applicable environmental laws and regulations related to their products’ development, manufacturing, and distribution [...] Comply with local laws regarding land rights, the use of natural resources and the rights of indigenous peoples and local communities. Any use or transfer of land should be subject to the application of the principles of Free, Prior and Informed Consent"

Relating to their Deforestation commitments - "We aim to develop long-lasting, trusting and mutually beneficial relationships with suppliers who share our strong values and who demonstrate the same commitment to operating responsibly and ethically across all facets of business [...] At ELC, we cover and assess forest risks at the supplier and ingredient levels. At the supplier level, we investigate sustainability risks through EcoVadis. Each supplier that participates answers a questionnaire and provides supporting documentation on the EcoVadis platform"

They participate in several different actions and initiatives with multiple stakeholders:  "The Lampung Project, a smallholder farmer initiative focused on more sustainable palm oil production to help drive responsible procurement best practice, which we initiated in November 2018. Led by global NGO Solidaridad, this collaboration also includes BASF, one of our long-term ingredient suppliers, the Roundtable on Sustainable Palm Oil (RSPO), Business Watch Indonesia (BWI), and the Indonesian Agency for Agricultural Extension (KTNA), a local farmers association. The Lampung Project’s goal is to strengthen the ability of 1,000 smallholder farmers (i.e. farmers who own or cultivate farms that are less than 2.0 hectares of land) in the Lampung Province of Indonesia to produce sustainable palm oil that minimizes environmental impacts and contributes to improved incomes and livelihoods."; "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."

"At ELC, we cover and assess forests-related risks at the supplier and ingredient levels. At the supplier level, we look into Sustainability risks through EcoVadis assessments. EcoVadis ratings assess environmental impacts among others. [...] control of risks associated with the procurement of forest-related commodities is recognized as a key sustainability challenge for ELC and is factored into our forests related risk assessments. We consider the risk of loss of markets associated with ingredient commodities linked to deforestation by integrating the risk into our Enterprise Risk Management Process"

In their 2019 ACOP report, Estee Lauder disclose "Total volume of palm oil/palm kernel oil derivatives and fractions - 4026.05 Tonnes" [...] Estee Lauder's palm oil volume "Excludes products manufactured by Third-Party Manufacturers (TPMs) that contain palm-based ingredients not directly procured by The Estée Lauder Companies. This exclusion applies to all references to our 2025 goal to source 100% RSPO-certified palm-based derivatives. [...] The complexity of the PKO derivative ingredient supply chain continues to pose challenges to establishing source traceability for the Company, as well as to our tier 1 direct suppliers"

Certified palm oil is reported within their ACOP report "We met our interim goal a year ahead of schedule, with 58% of our palm-based ingredients certified sustainable from RSPO physical supply chains (Mass Balance and Identity Preserved) in calendar year 2019. In total, 100% of our palm-based ingredients are certified under one of RSPO’s four certification types: Mass Balance, Identity Preserved, Segregated or Book & Claim. We are on track to meet our goal of 90% RSPO certification from physical supply chains by 2025."

"In 2019, the Estee Lauder Companies became a founding member of the Action for Sustainable Derivatives (ASD) [...] Through our membership in ASD, ELC is committed to establishing traceability to the point in the supply chain where suppliers can demonstrate that the palm ingredients meet our sourcing principles, and collectively monitor and address grievances. [...] RSPO/ACOP tracking - We monitor and track RSPO physically certified ingredient sourcing of physically certified palm volumes through our internal RDS system. We calculate certified volumes periodically through a standardized operational procedure (SOP) and publish progress annually through the RSPO ACOP (Annual Communication on Palm)" [...] We engage and monitor existing supplier and 2nd tier suppliers (manufacturers) environmental, social and governance performance via the EcoVadis tool [...] We assess suppliers’ CSR performance through Code of Conduct-aligned audits conducted by a leading third-party monitoring organization or through EcoVadis assessments. EcoVadis is an internationally recognized, collaborative CSR platform that helps us measure and drive suppliers' CSR improvements in the areas of labor & human rights, environmental management and ethical business practices"

"We contract with third parties to conduct on-site audits for suppliers that we select based on criteria such as the location of the operations, type of material being sourced and the impact to our business. The auditors utilise our Supplier Code of Conduct Audit Standard and report format. 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 [...] 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)"

NDPE 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 "The Supplier Code is based on internationally recognized standards, including the Universal Declaration of Human Rights and International Labor Organization’s Conventions.  [...] 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"

"ELC Suppliers must strive to promote an environment that is free from discrimination and inclusive of all people and their unique abilities, strengths and differences. ELC Suppliers must provide equal opportunities, in all aspects of employment and must not subject their workers to any illegal discrimination with regard to recruitment, hiring, remuneration, promotion, access to training, professional development, retirement or termination. Any employment decisions must be based on worker’s ability and not on personal characteristics such as race, creed, color, religion, gender, sex, age, national origin, alienage or citizenship status, sexual orientation, gender identity or expression"

"ELC Suppliers must meet all requirements of applicable environmental laws and regulations related to their products’ development, manufacturing, and distribution [...] Comply with local laws regarding land rights, the use of natural resources and the rights of indigenous peoples and local communities. Any use or transfer of land should be subject to the application of the principles of Free, Prior and Informed Consent"

Relating to their Deforestation commitments - "We aim to develop long-lasting, trusting and mutually beneficial relationships with suppliers who share our strong values and who demonstrate the same commitment to operating responsibly and ethically across all facets of business [...] At ELC, we cover and assess forest risks at the supplier and ingredient levels. At the supplier level, we investigate sustainability risks through EcoVadis. Each supplier that participates answers a questionnaire and provides supporting documentation on the EcoVadis platform"

"At ELC, we cover and assess forests-related risks at the supplier and ingredient levels. At the supplier level, we look into Sustainability risks through EcoVadis assessments. EcoVadis ratings assess environmental impacts among others. [...] control of risks associated with the procurement of forest-related commodities is recognized as a key sustainability challenge for ELC and is factored into our forests related risk assessments. We consider the risk of loss of markets associated with ingredient commodities linked to deforestation by integrating the risk into our Enterprise Risk Management Process"

In their 2020 CDP report, Estee Lauder discloses total production/consumption volume certified as 18% which equates to 1948 tonnes

In their 2020 CDP report, Estee Lauder discloses total production/consumption volume certified as 18% which equates to 1948 tonnes

"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)".

Estee Lauder suspends & engages their suppliers by re-integrating suppliers back into supply chain based on the successful and verifiable completion of activities "Non-certified suppliers do not get new business until certification is complete. Although 91-99% of our suppliers are able to provide FSC certified materials, currently 10-20 % of our forest-based fiber cartons volume is being counted towards our FSC certified FY19 volumes. We anticipate that this percentage will increase as we continue to implement internal controls to ensure compliance with FSC requirements and strive to reach our goal to have 100% of our forest-based fiber cartons FSC certified by the end of 2025." [...] ""We contract with third parties to conduct on-site audits for suppliers that we select based on criteria such as the location of the operations, type of material being sourced and the impact to our business. The auditors utilise our Supplier Code of Conduct Audit Standard and report format. 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"

Supplier Code of Conduct states that "The Supplier Code is based on internationally recognized standards, including the Universal Declaration of Human Rights and International Labor Organization’s Conventions.  [...] 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"

"ELC Suppliers must strive to promote an environment that is free from discrimination and inclusive of all people and their unique abilities, strengths and differences. ELC Suppliers must provide equal opportunities, in all aspects of employment and must not subject their workers to any illegal discrimination with regard to recruitment, hiring, remuneration, promotion, access to training, professional development, retirement or termination. Any employment decisions must be based on worker’s ability and not on personal characteristics such as race, creed, color, religion, gender, sex, age, national origin, alienage or citizenship status, sexual orientation, gender identity or expression"

"ELC Suppliers must meet all requirements of applicable environmental laws and regulations related to their products’ development, manufacturing, and distribution [...] Comply with local laws regarding land rights, the use of natural resources and the rights of indigenous peoples and local communities. Any use or transfer of land should be subject to the application of the principles of Free, Prior and Informed Consent"

Supplier Code of Conduct states that "The Supplier Code is based on internationally recognized standards, including the Universal Declaration of Human Rights and International Labor Organization’s Conventions.  [...] 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"

"ELC Suppliers must strive to promote an environment that is free from discrimination and inclusive of all people and their unique abilities, strengths and differences. ELC Suppliers must provide equal opportunities, in all aspects of employment and must not subject their workers to any illegal discrimination with regard to recruitment, hiring, remuneration, promotion, access to training, professional development, retirement or termination. Any employment decisions must be based on worker’s ability and not on personal characteristics such as race, creed, color, religion, gender, sex, age, national origin, alienage or citizenship status, sexual orientation, gender identity or expression"

"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.