The Estée Lauder Companies has positioned itself as a leader in environmental, social, and governance (ESG) values, as outlined in its 2024 Social Impact and Sustainability Report. The company’s ongoing journey to redefine industry standards has led to breakthroughs in climate action, resource conservation, and social equity, establishing a solid framework for responsible business practices.
ELC’s commitment to inclusivity and corporate ethics was underscored in 2022 following the departure of senior executive John Demsey. Demsey, a longtime executive and global brand president, was dismissed due to a widely criticized Instagram post that conflicted with the company’s values of respect and inclusivity. This pivotal event prompted ELC to strengthen its internal culture and re-evaluate its diversity and inclusion strategies. Since then, the company has implemented several initiatives to foster a workplace grounded in ethical standards and inclusivity.
ELC has achieved carbon neutrality across its Scope 1 and Scope 2 emissions for five consecutive years, supported by sourcing 100% renewable electricity for its direct operations. This achievement highlights ELC’s commitment to reducing its environmental footprint with a targeted 50% reduction in absolute emissions by 2030, reinforced through renewable energy investments and efficient energy management.
With a 21% reduction in Scope 3 emissions per revenue unit, ELC is advancing toward its 60% reduction goal by 2030. Efforts to cut emissions include minimizing air freight, enhancing supplier partnerships, and prioritizing sustainable materials sourcing—steps that collectively address the beauty industry’s broader environmental impact.
ELC’s approach to packaging incorporates circular economy principles, with 71% of packaging in 2024 aligned with at least one of the "5 Rs": recyclable, refillable, reusable, recycled, or recoverable. The company aims for 75-100% packaging compliance by 2025, bolstered by innovations like Aveda’s recyclable sachets and Bobbi Brown’s refillable products. These advancements support a long-term goal to increase post-consumer recycled (PCR) content despite industry challenges in PCR availability.
Water conservation is central to ELC’s sustainability strategy. This is reflected in a 23% reduction in water withdrawal at high-stress locations, surpassing its 20% reduction target for 2025. This achievement is attributed to advanced water-efficient technologies and sustainable practices that further ELC’s commitment to preserving global water resources.
ELC is closing in on its goal of zero industrial waste-to-landfill across its global facilities, with 99.8% of waste diverted from landfills in 2024. Enhanced waste processing and partnerships with third-party management companies are part of a broader initiative to reach complete zero-waste status.
A powerful advocate for positive change, ELC now has 91% of its brands supporting social or environmental causes, aiming for complete brand alignment by 2025.
ELC achieved global pay equity and raised female representation at the senior leadership level to nearly 50%, moving towards its gender parity goal by 2025. Programs such as Open Doors Women’s Leadership enhance career progression opportunities, while partnerships with organizations like AFROTECH and Spelman College expand racial diversity.
With women comprising 70% of ELC’s scientific and technical professionals, the company is advancing gender equity in STEM through educational partnerships with institutions such as Girl Scouts and Spelman College. These initiatives offer young women valuable exposure to STEM careers, broaden career pathways, and support ELC’s internal talent pipeline.
ELC achieved its sustainably certified palm oil goal ahead of schedule, with 95% of its palm-based ingredients certified by the Roundtable on Sustainable Palm Oil (RSPO). This dedication to transparency extends to other high-risk ingredients, with a target of 100% sustainable sourcing and biodiversity safeguards by 2025.
The company’s commitment to diversity and inclusion took center stage with an expanded unconscious bias training program, which reached over 2,300 employees in 2024. Initiatives like Identifying and Disrupting Unconscious Bias have fostered an inclusive workplace culture. ELC’s expanded focus on ethical leadership and inclusivity signals its dedication to rebuilding and sustaining trust with employees and consumers.
The firing of John Demsey marked a pivotal moment in ELC’s cultural transformation. In response, the company implemented enhanced diversity, equity, and inclusion (DEI) strategies, including more comprehensive ethics training, robust DEI policies, and partnerships focused on supporting Black talent and fostering inclusive representation.
In 2024, The Estée Lauder Companies reported substantial progress in sustainability and social impact, meeting key targets in waste reduction, sustainable packaging, carbon neutrality, and inclusivity. With measurable milestones achieved across these areas, the company has outlined clear ESG objectives to guide its ongoing efforts to advance sustainability and social responsibility within the beauty industry.
