Strategic Integration of Sustainability and Business Performance
The Estée Lauder Companies exemplifies the integration of sustainability into core business strategy, as evidenced by the consistent achievement and acceleration of key environmental and social targets. ELC’s annual Social Impact & Sustainability Reports, culminating in the 2024 edition, demonstrate a deliberate shift from compliance-driven ESG to a model where sustainability is a primary driver of innovation, operational efficiency, and value creation.
Climate Action and Emissions Management
ELC has achieved carbon neutrality in Scope 1 and 2 emissions for five consecutive years and sources 100% renewable electricity for its direct operations globally. The steady reduction in Scope 1 & 2 emissions (~24 ktCO2e in 2022 to ~19 ktCO2e in 2024) demonstrates operational decarbonization and a robust, science-based approach to climate action. However, Scope 3 emissions (value chain, ~1,060 ktCO2e in 2024) remain the largest share of the footprint and continue to be a sector-wide challenge, requiring ongoing supplier engagement and product innovation.
Circularity, Packaging, and Resource Efficiency
ELC’s packaging sustainability program is a standout, with 71% of packaging in 2024 being recyclable, refillable, reusable, recycled, or recoverable-up from 59% in 2022, with a goal of 75% by 2025. Waste diversion from landfill at manufacturing and distribution sites rose from 85% to 91% over the same period. These metrics reflect a maturing circular economy strategy, leveraging the “5 Rs” (reduce, reuse, recycle, recover, renew) and embedding circularity into both product design and supply chain management.
Water Stewardship and Sustainable Sourcing
ELC surpassed its water withdrawal reduction targets in 2024, achieving a 23% reduction at direct manufacturing sites compared to a 2019 baseline. The company also reached its palm oil sustainability goals ahead of schedule, with 100% of palm-based ingredients certified under RSPO standards by 2023. These achievements highlight ELC’s commitment to resource stewardship and responsible sourcing-key priorities for resilience in a changing climate.
Social Impact, Equity, and Governance
ELC’s workforce is 81% female, with women holding over 60% of vice president positions and 50% of leadership roles by 2024, reflecting industry-leading progress on gender equity. The company’s response to high-profile internal challenges (e.g., executive departures) has further strengthened its culture of ethics, inclusivity, and accountability. ELC’s philanthropic and community investments, especially in women’s advancement and STEM, reinforce its role as a social impact leader.
Transparency, Reporting, and Communication Trends
The rising frequency of keywords such as “emissions,” “circular,” “recycled,” “diversity,” “water,” and “packaging” in ELC’s reports signals a strategic focus on these areas and a commitment to transparent, data-driven communication. The company’s publication of its first corporate ingredient glossary and ongoing updates to its Climate Transition Plan further demonstrate leadership in ESG disclosure and stakeholder engagement.